Full text of Federal Reserve Bulletin : July 1974

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FEDERAL RESERVE

BULLETIN

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FEDERAL RESERVE BULLETIN
NU M B ER 7 □ V O LU M E 60 □ JU L Y 1974

CONTENTS

475

R ecent Labor M arket D evelopm ents

487

S tatem ents to Congress

493

R ecord of Policy Actions of the Federal O pen M arket C om m ittee

501

Law D epartm en t

526

R evised R ates for the Bulletin

527

A nnouncem ents

531

Industrial Production
Financial and Business Statistics

A

1

Contents

A

3

Guide to Tabular Presentation

A

3

Statistical Releases: Reference

A

4

U.S. Statistics

A

60

International Statistics

A

84

Board of G overnors and S taff

A

86

O pen M arket C om m ittee and Staff; F ederal Advisory Council

A

87

Federal R eserve Banks and B ranches

A

88

F ederal R eserve Board Publications

A

91

Index to Statistical Tables
M ap of Federal R eserve System on Inside Back C over

EDITORIAL
COMMITTEE




J. C harles P artee
R alph C. Bryant
Lyle E. G ram ley

Joseph R. C oyne

Robert Solomon
Kenneth B. W illiam s
Elizabeth B. S ette

The Federal Reserve B U L L E T I N is issued monthly under the direction of the staff editorial
committee. This committee is responsible for opinions expressed except in official
statements and signed articles. Direction for the art work is provided by M ack Rowe.

Recent Labor Market
Developments

Growth in demand for labor has moderated somewhat since last
fall, but the pace o f wage increases has accelerated. Total em ploy­
ment, which had risen rapidly during 1972 and most o f 1973,
slowed its advance late last year when the oil embargo contrib­
uted to a curtailment in economic activity, and at year-end the rate
o f unemployment rose. A slower rate o f labor force growth this
year has about equaled the reduced rate o f employment gains,
however, and the unemployment rate consequently has shown little
change. A t the same time, wage adjustments have increased, but
rising prices continue to erode the real purchasing power o f earn­
ings.
Early in 1973 a brisk advance in economic activity— reflecting
strong consumer demands, especially for durable goods, rising
outlays for business fixed investment, and a favorable shift in the

Economic activity weakens and TOTAL EMPLOYMENT growth slows,
but reduced labor force gains moderate the rise in unemployment
UNEMPLOYMENT RATE

CHANGE INREAL GNP
~ 10

CIVILIAN LABOR FORCE

R e a l G N P (1 9 5 8 d o lla rs ) is D ep t, o f C o m m e rc e data, season^
a lly adjusted q u arterly ch an ges at annual rates. L a b o r fo r c e ,




e m p lo y m e n t, and u n e m p lo ym en t rates are m o n th ly Bureau o f
L a b o r Statistics data.




476

FEDERAL RESERVE BULLETIN □ JULY 1974

volume o f exports and imports— had led to a sharp increase in
industrial employment. The expansion of total industrial em ploy­
ment slowed somewhat after m id-1973, as growth in aggregate
output was increasingly slowed by capacity constraints and materi­
als shortages, by weakening consumer demands, and by reduced
activity in residential construction. The continued increase in capital
spending, however, helped to sustain employment gains in the
metals and machinery industries throughout most o f the year, and
expansion o f employment in service-type industries continued
apace.
In the fall, the impact o f the fuel embargo added to the other
constraints and growth o f output was curtailed further, with only
a minimal increase in real gross national product in the fourth
quarter and a sharp decline in the first quarter o f 1974. As a result,
heavy layoffs and rising unemployment occurred during the winter
in manufacturing industries as w ell as in other energy-related
activities. With the end o f the oil embargo, employment gains have
resumed, although at a substantially slower pace than earlier. On
balance, all o f the employment increases that have occurred this
year have been in service-type industries. In contrast, industrial
employment has remained below earlier peak levels and the factory
workweek has continued to edge off. Follow ing the large rise in
unemployment at year-end, joblessness among most labor force
groups has been relatively stable, and the total increase in unem­
ployment has not been so great as had been feared during the height
o f the winter energy crisis.
W age advances, which had been relatively moderate during
1972, accelerated in 1973 as prices increased faster and as the
coverage and effectiveness o f the stabilization program were sub­
stantially curtailed. The average hourly earnings index— this ex ­
cludes overtime premiums in manufacturing and shifts o f workers
between industries— rose 6.7 per cent over the four quarters o f
1973, but consumer prices moved up even faster and real earnings
o f nonfarm workers declined substantially. W ages began to ad­
vance more rapidly in 1974, and during the second quarter the hour­
ly earnings index rose at a 9.6 per cent annual rate, with sharp in­
creases widespread. The acceleration has been reflected in major
collective bargaining settlements, which recently have been signif­
icantly larger than in 1973. Cost-of-living adjustment clauses have
been improved and extended, and fringe benefits have been in­
creased.
The rise in the cost o f living, together with continued demands
for labor in trade and services and the recent increase in the
minimum wage, has been an important factor leading to large wage
raises in many nonunion sectors as w ell. With the rapid rise in
hourly compensation and a standstill

in productivity gains—

RECENT LABOR MARKET DEVELOPMENTS

477

reflecting in large part sluggish growth o f output— unit labor costs
have been advancing sharply, adding further pressure on prices.

DEMAND FOR LABOR




Nonfarm payroll employment continued to rise quite rapidly for
most o f 1973, although the rate o f growth o f output dropped and
productivity gains ceased. Factory employment, however, began
to show signs o f easing after midyear, while in many other sectors
the growth in employment continued unabated. Large layoffs in
manufacturing and some cutbacks in service-sector jobs occurred
late in the fall as a result o f increasing shortages o f basic materials
and slower spending for consumer durable goods and construction,
as w ell as the uncertainties introduced by actual and anticipated
fuel shortages. Growth o f service-type jobs picked up in the spring
follow ing the end o f the oil embargo, and industrial employment
has about leveled off. The net effect has been a reduction in the
growth o f total nonfarm payroll employment to an annual rate o f
less than 1 million between Novem ber and June, compared with
2.7 million over the four quarters o f 1973.

Industrial EMPLOYMENT declines, while growth continues
in service-type industries

B L S p a y ro ll e m p lo y m e n t data, sea so n ally adjusted. Industrial in clu des m an u factu ring,
m in in g , and constru ction . P riva te service-p ro d u cin g in clu des trade, fin an ce, s ervices , trans­
porta tion , and pu b lic u tilities.

Manufacturing employment gains in 1972 and most o f 1973 were
concentrated in the metal-producing and metal-using industries—
the sectors most affected by the strength o f business capital outlays
and o f spending for consumer durable goods. Although a contrac­
tion in domestic auto sales shortly after m id-1973 led to reduced
auto production and some job cuts in the transportation equipment
industry, labor demand in other durable goods industries continued
strong through the summer and fall. Growth was especially evident
in steel and among producers o f machinery and electrical equip­
ment, and reflected continued strength in plant and equipment
spending.
The factory layoffs during the winter months resulted in a decline

478
INDUSTRIAL PRODUCTION

FEDERAL RESERVE BULLETIN □ JULY 1974

o f nearly a quarter o f a million in the total number o f factory
jobs. Although energy shortages were the proximate cause o f the
decline, the drop in auto sales in the preceding several months
and the reduced rates o f growth in manufacturing output and in
construction activity were also important factors. About half o f
the decline in manufacturing jobs was directly in the transportation
equipment sector with the rest spread throughout durable goodsproducing industries. In transportation equipment, the bulk o f the
layoffs were in the auto industry where employment declined
150,000, but there were also cutbacks among producers o f recrea­
tional vehicles and private aircraft. Sharp reductions also occurred
among manufacturers o f primary and fabricated metals and electri­
cal equipment. Unlike the cuts in manufacturing jobs in 1970, when
employers sought to trim overhead by laying off nonproduction
workers, all o f the recent factory layoffs were among production
workers. Manufacturing employment has changed little since early
1974. Employment in the durable goods-producing sector has edged

* A ffe c te d
w eek.

by

h o lid a y

in

su rv ey

Industrial prod u ctio n , F .R . data;
em p lo y m en t and hours, B L S data.
S ea son a lly adjusted.




up slightly, but this has been offset by some job losses in the
nondurable goods sector.
The average workweek o f factory production workers trended
up throughout 1972 and early 1973, reaching a 4 Vz -year high o f
41 hours. But in m id-1973 the factory workweek started to turn
down, in advance o f reductions in manufacturing employment.
During the second half o f 1973 and first half o f 1974, factory hours
moved down slowly to 40.1 hours in June. Cutbacks in overtime
hours accounted for the bulk o f the drop.
Construction employment rose strongly in the first three quarters
o f 1973. During the fourth quarter, job gains slowed as spending
for residential structures was curtailed. Further reductions in build­
ing expenditures in 1974, due in part to uncertainties as to the
availability o f funds, and some increase in strike activity have
resulted in a sharp decline in construction employment recently.
Construction jobs fell by 50,000 in June to put the total 150,000
below the February 1974 level.
Job gains in the private service-producing industries totaled 1.4
million over the four quarters o f 1973, about the same as in 1972.
Follow ing the general pattern o f the past decade or more, the
greatest gain— 600,000— was

in service

employment

such as

hotels, hospitals, and private education. Retail trade also showed
a rapid advance— 375,000. H ow ever, for a short period during the
winter months, gasoline and fuel shortages had a substantial impact
on some trade and service jobs. Layoffs were reported at service
stations, reflecting reduced hours o f operation, and at automobile
dealerships, as well as at hotels and motels and at certain types
o f recreational facilities. But as the gasoline shortage began to ease
in the spring, increases in service-type employment resumed.

RECENT LABOR MARKET DEVELOPMENTS
GOVERNMENT EMPLOYMENT

479

Growth in employment in the public sector during 1973 again
occurred entirely among State and local governments. Federal
civilian employment has held at about 2.6 million since m id-1970,
while State and local government payrolls have continued to absorb
large numbers o f workers— up 450,000 since m id-1973— about

FEDERAL

equal to the average yearly increase since 1969. Despite slower
growth o f the school-age population, about two-thirds o f the 1973
rise was in educational activities. Apparently the use o f aides and
special education teachers and the growth o f publicly supported

B L S p a y ro ll e m p lo y m e n t data, sea­
so n a lly adjusted qu arterly a vera g es.

community colleges have become increasingly important. State and
local government employment was expanded considerably in late
1971 and early 1972 by workers hired under the Public Employment
Program (PE P). The growth o f this program, however, dropped
substantially after a freeze was placed on additional PEP hiring
in June 1972. The new manpower revenue-sharing program, which
is expected to become fully operative later this year, could lead
to a pick-up in PEP hiring in activities such as public works,
administrative services, and police and fire protection.

LABOR SUPPLY




Growth o f the labor force slowed considerably in the first half o f
1974, apparently in response to an easing in labor market condi­
tions. The civilian labor force advanced by less than 1 m illion,
annual rate, between January and June, and all o f the expansion
occurred during the late spring; between January and April the
labor force had shown a net decline.
The recent slowdown was preceded by a period o f exceptionally
rapid expansion in both 1972 and 1973. Strong demands for labor

CIVILIAN LABOR FORCE growth slows for workers under 35
—■■
'71 Q4 - '72 Q4

.......

I MEN UNDER 35 YEARS
I

_

WOMFMllNriFB 3R YFARS
MEN 35 YEARS AND OVER
W O M EN35 YEARS AND OVER

_ _

J

i
■

■

’73 Q4 - 74 Q2

B L S h ou seh old su rv ey data, sea so n ally adjusted qu arterly a vera g es. C h a n ges fr o m
Q 4 to 1974 Q 2 at annual rates. U n d er 35 years refers to persons a ged 16 to 34.

1973




480

FEDERAL RESERVE BULLETIN □ JULY 1974

swelled the work force at an annual rate o f 2.7 million during
1973— a rate well above the expected growth o f about 1% million
based on the 2.6 million increase last year in the working age
population and on past trends in participation rates (the per cent
o f the population either working or seeking work). As a result,
although employment advanced substantially through most o f 1973,
the unemployment rate declined only moderately through the early
fall.
The extraordinary expansion o f the labor force in 1973 was
concentrated among workers under 35 years o f age, for whom both
population and participation rates rose rapidly. M ore than half o f
their labor force growth was attributable to an increase in popula­
tion— a continuing heritage of the postwar baby boom. Most of
the remainder o f the expansion was due to sharply rising partici­
pation rates among workers 16 to 24 years o f age and among women
in the 25- to 34-year age group. The increased participation re­
flected, in part, the continued growth o f demand for full- and
part-time labor in the service and trade industries, where younger
workers and women have traditionally found employment.
A longer-run factor affecting the labor force growth has been
the shift in the average age o f younger workers over the past
half-dozen years toward the older end o f the 16- to 24-year age
group, which has a higher rate o f participation. The continued
uptrend in participation o f women 25 to 34 years o f age reflects
the increased inclination o f married women to work as changing
social attitudes have increased their job opportunities; in addition,
lower birth rates, and, to some extent, the growth o f such institu­
tional arrangements as day care for children have increased their
availability for jobs.
In contrast, the number o f men 35 years o f age and over in
the labor force declined during 1973, and the number o f women
in this age group showed only a moderate advance. The declining
participation o f adult men has occurred mainly among men aged
55 and over— a long-term phenomenon— and more recently, among
men o f 45 to 54 years. For the older group, this has been due
in part to earlier retirement; for both groups, increased and more
liberal coverage o f health and accident disability programs may
also have contributed to the decline in participation.
The labor force drop early in 1974 was not unusually large
compared with previous declines during periods o f reduced eco­
nomic activity. Several months o f net labor force decline have often
occurred when output has weakened in the past; these declines
have often been follow ed by a sharp rebound in labor force growth,
but the net result o f these developments has been a slower average
rate o f increase than during periods o f more robust growth in output.
H ow ever, the recent slowdown o f labor force growth did have some

RECENT LABOR MARKET DEVELOPMENTS

481

unusual features. Typically, most o f the decrease in the labor force
in a period o f reduced output growth is among teenagers, with
only small reductions among older workers o f both sexes. In the
past, women also tended to withdraw from the labor force during
periods o f slack markets, but in recent years they have shown
stronger labor force attachment. This time, however, although there
was the usual decline in the teenage labor force, there was also
an unusually large and unexpected drop in the number o f adult
males in the labor force and a rapid increase in the adult female
labor force. The continued rise in the number o f adult women
looking for work may reflect in part the need to shore up fam ily
income in the face o f rapidly rising consumer prices.
During the late spring o f 1974 there was a rebound in the
participation o f adult men and teenagers, and labor force growth
resumed. But it seems likely that the labor supply w ill grow at
a slower rate in the months ahead if economic growth continues
w ell below trend.

UNEMPLOYMENT




The unemployment rate has been on a plateau a little above 5
per cent since the beginning o f the year, follow ing a rise o f half
a percentage point between October 1973 and January 1974. The
recent stability in the over-all unemployment rate reflects the
unchanged jobless picture for most groups at rates considerably

UNEMPLOYMENT rises late in 1973,
stabilizes in first half of 1974

JOBLOSERS

WHITE

B L S h ou seh old data, sea so n ally adjusted qu arterly a vera g es. U n e m p lo y m e n t rates fo r jo b
losers and la b o r fo r c e entrants, w h ic h in clu de re-entrants as w e ll as those w h o h ave n ever
w o rk ed b e fo r e , are as a per cent o f the c iv ilia n labor fo rc e .




482

FEDERAL RESERVE BULLETIN □ JULY 1974

above the lows reached in the autumn o f 1973. The unemployment
total in m id-1974 not only is larger than in the autumn o f 1973,
but also is composed o f a relatively high proportion o f experienced
workers who are likely to have fam ily responsibilities and to be
seeking full-time jobs.
The rise in unemployment in late 1973 was due to the reduction
in economic activity and was aggravated by energy-induced layoffs
in the auto and other industries. As a result, the bulk o f the rise
in unemployment occurred among persons who had lost their jobs
rather than among new entrants into the labor force. There was
relatively little impact on white-collar workers, but jobless rates
for blue-collar workers rose sharply. Most o f the workers in this
group are covered by State unemployment insurance programs, and
the number o f persons drawing benefits increased by about 30 per
cent between October 1973 and February 1974 to a weekly average
o f 2.1 m illion; it has remained at about this level since then.
During the 1971-73 expansion period the drop in unemployment
was considerably smaller than during previous cyclical recoveries.
Three years after the cyclical trough, the unemployment rate had
declined only 1.2 percentage points to a low o f 4.6 per cent in
October 1973 compared with an unemployment low o f about 3 Vi
per cent in 1968-69. In part this was due to the unusually strong
growth in the labor force during 1972 and 1973. Another factor
was the change in the age-sex composition o f the labor force. Over
the past decade, workers whose unemployment rates tend to be
above the over-all total— primarily workers 16 to 24 years o f
age— have become an increasingly larger proportion o f the labor
force. The effect o f this demographic change has been to raise
the aggregate unemployment rate somewhat compared with the
early 1960’ s.
A ll labor force groups shared in''the improved unemployment
picture between the latter part o f 1972 and the comparable period
in 1973. The sharpest relative reduction in unemployment occurred
among men 20 to 24 years old, whose unemployment rate dropped
from 8.5 per cent to 6.5 per cent. The unemployment rate for
men 25 years o f age and over also improved somewhat, and this
was reflected in unemployment rates for heads o f households,
full-time workers, married men, and workers in the manufacturing
sector. Even though physical capacity limits leading to materials
shortages were approached in a number o f industries, unemploy­
ment rates for all demographic groups were higher in 1973 than in
1969— the last year o f relatively tight labor markets.
The unemployment rate o f N egro workers throughout the past
year and a half has been about double that o f white workers, as
it has been for most o f the past two decades. The most severe

RECENT LABOR MARKET DEVELOPMENTS

483

unemployment disparity exists for teenagers and for women 20
to 24 years o f age; for each o f these groups unemployment rates
for N egro workers are 2Vi to 3 times greater than those for their
white counterparts. The differences are smaller among both men
and women aged 25 and over, but the unemployment rate for Negro
workers in the older age group still tends to be almost twice that
of white workers.
During the four quarters o f

1973 joblessness among N egro

workers declined moderately. The largest share o f the decrease
was attributable to N egro teenagers, but some improvement also
occurred among both male and female adults. With the layoffs
during the winter months, unemployment o f both white and N egro
workers rose. During the early stages o f rising joblessness in the
past, the unemployment rate for white workers has tended to rise
relatively more rapidly than the rate for N egro workers, mainly
because o f the heavy concentration o f N egro workers in the less
cyclically sensitive service industries.

During the most recent

period, however, the relative rise in unemployment was about the
same for both groups, reflecting the increasing proportion o f Negro
workers in auto and other industrial activities and the impact o f
energy-related layoffs on the service sector.

WAGES AND
LABOR COSTS




The acceleration o f wage increases in 1974 has been widespread
throughout the economy, with the pace substantially faster in the
second quarter than in the first; the acceleration reflects mainly
a response to rapid price increases, a heavy collective bargaining
calendar, and the termination o f wage controls on April 30. The
average hourly earnings index for the private nonfarm sector— the
closest available measure o f average wage rates— grew at an annual
rate o f 9.6 per cent in the second quarter o f 1974 compared with
a 6.7 per cent rate o f increase over the four quarters o f 1973.

Increases in HOURLY EARNINGS accelerate

B L S data, sea son ally adjusted q u arterly a verages. A v e r a g e h ou rly earn in gs o f produ ction
w ork ers adjusted fo r interindustry sh ifts and o v e rtim e in m an u facturing.

484
AVERAGE WEEKLY EARNINGS
PR IV A TE NO N FA R M EC O NO M Y

FEDERAL RESERVE BULLETIN □ JULY 1974

Despite the rapid uptrend o f wage adjustments, weekly pay of
nonfarm wage and salary workers has continued to lag increases
in consumer prices, which rose at a 12.2 per cent annual rate during
the first 5 months o f 1974. As a result, the purchasing power o f

CURRENT DOLLARS

weekly pay for the average worker with three dependents, which
had begun to decline in March 1973, dropped off even faster in

1967 DOLLARS

1974. In M ay it was about 6.5 per cent below the peak reached
in the fall o f 1972.
The largest increases in wage rates recently have been in manu­
facturing; there, wages accelerated sharply in the spring o f 1974
as settlements in several key industries became effective and large

B L S data, sea so n ally adjusted q u ar­
terly a verag es. F o r 1967 d o lla rs,
1974 Q 2 , F .R . estim ate.

cost-of-living adjustments were reflected in pay rates. The average
hourly earnings index for manufacturing increased at an annual
rate o f 11 per cent between January and June, markedly faster
than the 6.5 per cent gain during 1973.
The speed-up in wage adjustments was also apparent outside
the manufacturing sector. Construction wages, which had shown

HOURLY EARNINGS INDEX

the most dramatic slowdown during 1971 and 1972 under the
Construction Industry Stabilization Committee (C IS C ), began rising
more rapidly again in the second half of 1973 and have increased

CONSTRUCTION

at a 10.4 per cent annual rate so far in 1974. Because contracts
o f short duration— usually 1 year— proliferated under the C IS C ’ s
program as workers attempted to reduce the period of “ locked
in”

wage increases during wage controls, an unusually large

number o f construction workers are involved in wage negotiations
in 1974.
B L S data, sea son ally adjusted q u ar­
terly a verag es.




In the less unionized service and trade sectors, wage pressures
also became evident in the second half o f 1973 and have continued
into 1974. The recently enacted amendments to the Fair Labor
Standards A ct (F L S A ), which raised the minimum wage and
extended its coverage, have had most o f their impact in trade and
in services such as hotels, motels, laundries, and educational
institutions and among domestic private household workers. On
M ay 1 a minimum wage o f $2.00 an hour became effective for
most workers, increasing the annual wage bill by $1.9 billion. The
new F L S A amendments w ill raise the minimum for all workers
to $2.30 an hour by January 1, 1978; the increase w ill take place
in five stages. Reflecting in part the impact o f the new F L S A
provisions, wages in services and trade accelerated sharply over
the April to June period.
Hourly compensation in the nonfarm economy has maintained
its rapid rate o f growth in 1974, reflecting the large wage and
fringe gains and increases in the social security tax in January.
Compensation rose at about an 8.5 per cent annual rate in the
first half o f the year, as compared with an 8 per cent rate in the

RECENT LABOR MARKET DEVELOPMENTS

485

UNIT LABOR COSTS rise rapidly as compensation increases
accelerate, and productivity performance deteriorates
■

HOURLY
COMPENSATION

PRODUCTIVITY

UNIT LABOR
COSTS

B L S data. P ercen ta g e ch ange fr o m tw o quarters ea rlie r at annual rates. F o r h ou rly c o m p e n ­
sation, 1974 Q 2 , F .R . estim ate. P ro d u c tiv ity and unit la bor costs 1974 data are fo r Q l , p e r­
cen ta ge ch a n ge fr o m p revio u s quarter at annual rates.

latter half o f 1973. As in the past, increases in fringe benefits
have continued to outpace growth in earnings.
Productivity performance has deteriorated in the past year, and
with the acceleration in wage increases unit labor costs have risen
sharply. Productivity gains moderated after the second quarter o f
1973, as often occurs when output growth slows, and then came
to a halt in the first part o f 1974. With hourly compensation
rising substantially over the same period, unit labor costs increased
rapidly. In the first quarter o f 1974 labor costs were 8.6 per cent
above their year-earlier level— the largest increase over any four
quarters since the Korean war. This behavior o f labor costs has
put further pressure on prices.

COLLECTIVE
BARGAINING




Wages have been particularly sensitive to the rise in living costs
this year because 1974 is a heavy bargaining year. Negotiations
are taking place in several key, pattern-setting industries such as
steel, telephone, and railroads. Nearly 5V4 m illion workers are
covered by major contracts— those that affect

1,000 or more




486

FEDERAL RESERVE BULLETIN □ JULY 1974

workers— due for renegotiation; this compares with about 4 million
last year, which was also a heavy year.
In a number o f recent contracts, cost-of-living agreements have
been liberalized as rapid inflation has focused union attention on
efforts to offset losses in real income. Currently, about 4 million
o f the IOV2 million workers in major bargaining units are covered
by escalator clauses; most o f these workers are concentrated in food,
metalworking, transportation, and communication industries. A l ­
though the number o f workers covered has remained fairly con­
stant since 1971, this year cost-of-living provisions are being
adopted in contracts that have not had them previously. Workers
in industries that offer no formal cost-of-living protection are at­
tempting to maintain their traditional wage relationships with in­
dustries in which such adjustments are made.
In addition to cost-of-living demands, union bargaining has
focused on improvement in fringe benefits. Workers in the alumi­
num and can industries obtained new early retirement privileges
and substantial gains in pension benefits including cost-of-living
protection for workers on pensions. Similar improvements were
negotiated in the steel contract.
Important

negotiations

in

the

communications,

railroad,

aerospace, coal mining, and construction industries are yet to be
completed in 1974. With consumer prices rising rapidly, wage and
fringe increases are likely to rise at a rapid pace this year and
intensify pressures on labor costs.

□

Statements to Congress
Statement by

Jeffrey M .

Bucher, M e m b e r,

B oard o f Governors o f the Federal Reserve
System, before the Subcommittee on Consumer
Affairs of the Committee on Banking and C u r­
rency, U.S. House of Representatives, June 20,
1974.

I greatly appreciate the opportunity to appear
before this Subcommittee on Consumer Affairs
to offer the views of the Board of Governors
on the “ Equal Credit Opportunity A ct” — H.R.
14856— which you introduced, Madam Chair­
man, and which was cosponsored by other
members of this subcommittee. The Board of
Governors fully supports the objectives that
your subcommittee seeks to attain through en­
acting of this legislation. Following Vice
Chairman Robertson’ s retirement about 1 year
ago, Chairman Burns assigned to me the re­
sponsibility for overseeing the Board’ s Truth in
Lending and related activities. Since that time,
I have become involved in these matters, and
I hope to continue the outstanding record set
by my predecessor.
Today, my remarks will cover the general
scope of H.R. 14856 and the role foreseen by
the Board of Governors in implementing the
purposes of the bill. Many of my comments will
be equally applicable to H.R. 14908, introduced
by Mr. Burgener and Mr. Widnall, which would
prohibit discrimination in the extension of credit
but only on the grounds of sex or marital status.
To supplement my statement today, the Board
will submit technical comments in the near
future on various provisions of both bills. I hope
that the committee will find my general remarks
and the written technical comments helpful in
its deliberations.
The Board favors the elimination of discrim­
ination in credit extensions. There is no consti­
tutionally protected right to receive credit, but
a great deal can be done to insure that access
to credit is made available on a just and fair
basis to equally creditworthy people. The denial




of credit based upon group identification, rather
than upon factors specifically related to an indi­
vidual’ s creditworthiness, works to the eco­
nomic disadvantage of applicants and creditors
alike.
Discrimination in credit granting is often the
result of traditional, but shortsighted, business
practices, rather than a concerted effort to deny
credit to certain groups. These business prac­
tices are partially due to local laws that are
outdated in their treatment of personal property
rights. In many cases, the statutes are based on
historical concepts that lag behind the prevailing
attitudes.
As this subcommittee well knows, the re­
fashioning of law to reflect changing social
attitudes is a difficult task. Personal as well as
corporate behavior is molded in conformity to
traditional legal standards and, frequently, these
molds are hard to break. The difficulties en­
countered in adapting to new legal standards are
compounded when they involve the elimination
of discriminatory conduct.
In the Board’ s deliberations on this issue, my
colleagues and I have been impressed by the
need to insure that the adjustment to a new
Federal antidiscriminatory standard is accom­
plished in a prompt and orderly manner. Thus,
we have reached the conclusion that, at least
initially, the proposed legislation should provide
for self-enforcement through the courts rather
than regulatory rule writing. Our reasons for this
preference are the following:
1.
From our perspective at the Board, no
Federal agency appears to possess the thorough
understanding of State law that we believe
will be essential to the effective implementation
of this legislation. The Board itself has had
little opportunity to develop the level of ex­
pertise necessary to determine the extent and
character of discrimination as it may be en­
countered in the credit field, aside from experi­
ence gained in enforcing Title V III of the Civil
Rights Act of 1968 among State member banks.

487

488

2.
Our limited experience in this area does
nevertheless suggest that there is a serious
question as to whether a statute prohibiting
discrimination in credit lends itself to a central­
ized scheme of Federal regulations. We reach
this conclusion primarily because, in our present
judgment, regulations, no matter how detailed,
will prove too insensitive an instrument for
determining whether creditor conduct is dis­
criminatory in particular circumstances.
We, therefore, recommend for the Congress’
consideration that this act be made effective
upon enactment and be self-enforcing. We fur­
ther suggest that a Federal agency be given at
least 1 year to study the feasibility of regulatory
enforcement. The Board is prepared to under­
take such a study and report its findings to the
Congress.
Let me further explain some of the reasons
for the conclusions I have just stated. As in the
case of the Truth in Lending Act, both H.R.
14856 and H.R. 14908 call upon the Board to
develop regulations to implement their objec­
tives. To date, the Truth in Lending Act has
been regarded by many as achieving a high
degree of creditor cooperation and compliance.
The regulations developed in connection with
the act may have assisted in this process.
While considering implementation of the
Equal Credit Opportunity Act, comparisons
have been made with experiences under the
Truth in Lending Act. There are certain simi­
larities between the scope and impact of the two
acts. Both measures seek to alter creditor be­
havior; both superimpose a Federal standard
upon a firmly established body of State law.
However, there are also significant differences
between the two measures, which lead to our
conclusion regarding the manner in which these
objectives can best be implemented.
Truth in Lending is a disclosure statute. Its
principal purpose is the creation of a uniform
method of disclosing credit costs so that bor­
rowers can make intelligent choices among al­
ternative sources of credit. The affirmative duty
that the act imposes upon creditors is to cate­
gorize, calculate, and publicize credit costs in
a uniform manner. Thus, its purpose is well
suited to the precision that is the ideal product
of regulation. In accomplishing its regulatory




FEDERAL RESERVE BULLETIN □ JULY 1974

task under the Truth in Lending Act, the Board
has dealt with specific and objective features of
credit transactions; its end product is informa­
tion written in specific terms and presented in
a standard form.
By contrast, the Equal Credit Opportunity Act
seeks to eliminate from creditor behavior certain
considerations that are judged to be improper.
These improper considerations are often subjec­
tive and are, in an economic sense, totally
irrelevant to the credit decision. We seriously
question whether sanctions forbidding the use
of such considerations lend themselves to spe­
cific rules. Telling creditors how to disclose
their charges is straightforward in comparison
to categorizing as permissible or discriminatory
all of the possible types of inquiries involved
in a credit application.
It would appear to be extremely difficult to
assess whether given conduct is discriminatory
without having a specific context in which to
measure the intent of the participating parties.
For example, an inquiry of a credit applicant’s
address, while seemingly innocent in the ab­
stract, may take on a discriminatory flavor when
the applicant resides in an area that has tradi­
tionally been categorized as “ high-risk” by
certain local creditors. Similarly, the specific
questions used by a creditor in ascertaining the
dependability of a married woman’ s income
may suggest a discriminatory practice.
Another of our concerns involves the interac­
tion between a proposed Federal standard and
State law. A Federal agency formulating regu­
lations under the Equal Credit Opportunity Act
would have to contend with the laws of 50
States while attempting to develop nationally
applicable rules.
Perhaps the point can be illustrated in terms
of discrimination based on marital status. Under
either H.R. 14856 or H.R. 14908, a creditor
is entitled to ask a woman who applies for credit
whether she is married, and to take into consid­
eration the impact of State property laws on the
extent and kind of assets he will be able to reach
if she were to default on a loan. In a community
property State, such as Louisiana or California,
he will have to ask fairly detailed questions in
order to determine whether her assets or income
are— or may become— part of the community.

STATEMENTS TO CONGRESS

If this has occurred, he may be entitled to
require that her husband join in signing a note
before extending credit to her.
The creditor may not, however, ask any
questions that are unnecessary for this purpose.
If he requires more information than he needs
under local law to secure himself, or if he asks
for signatures, releases, or guarantees that are
not actually necessary for the protection of the
credit, he may not only be opening himself to
the charge of discrimination, he may in fact be
discriminating. Not only does statutory law vary
widely from State to State, but judicial inter­
pretations of it are constantly changing. A single
Federal regulation would have to be written in
such terms as to take account of all these varia­
tions, and if it is to be written adequately and
fairly would require at the least an extensive
preliminary investigation of local law.
In enacting the Truth in Lending legislation
the Congress took great pains to avoid intruding
upon the traditional State law domain of interest
rates and creditor rights and remedies. Under
Truth in Lending a creditor is only required to
translate the charges connected with a loan into
uniform terms. The act does not tell him what
rate of interest he may charge or require him
to make a judgment as to his rights and remedies
under State law.
All of these considerations suggest to the
Board that the Equal Credit Opportunity Act
may be most effectively implemented by the
courts, as least in its initial stages. The very
individualized nature of the issue of discrim­
ination leads us to conclude that local judges,
well-versed in the scope and intricacies of State
law, may be better able to implement the act
than a Federal agency. Furthermore, the proce­
dures of the judicial process are uniquely
equipped to resolve matters of law based on
facts of a specific case within a local context.
Earlier we expressed concern regarding the
level of expertise necessary to determine the
extent and character of discrimination as it may
be encountered in the credit field. The Board
is presently participating with the Federal De­
posit Insurance Corporation, the Comptroller of
the Currency, and the Federal Home Loan Bank
Board in a pilot program for collecting racial
and ethnic data related to the granting of mort­




489

gage credit. The data are being collected and
reported by banks and savings and loan associ­
ations in 18 urban areas throughout the country.
The product of this program could prove helpful
to the purposes of this legislation.
Needless to say, mortgage credit is but one
aspect of this potential field for regulation that
merits careful study. In the area of sex and
marital status discrimination, we understand that
various State banking agencies are engaged in
developing programs to end discriminatory
credit practices. Some 14 States have enacted
legislation prohibiting discrimination in credit.
It is our understanding that many of these States
are now attempting to reconcile discriminatory
features in their property and family law codes.
Certainly, the approaches taken by these States
could prove instructive to the implementation
of similar legislation at the Federal level.
Finally, H.R. 14856 includes additional cate­
gories of prohibited discrimination— namely,
race, color, religion, national origin, and age.
We favor their inclusion, but we are concerned
that there may be many unexplored problem
areas related to these categories that deserve the
same careful analysis that has already been
given sex and marital status in its consideration
by Congress. Since H.R. 14856 was only intro­
duced on May 16, the Board has not had
sufficient time to explore possible questions
relating to these additional categories.
A study of these and the other problems
mentioned above could prove extremely helpful.
With the findings of such a study before it, the
Congress could make a more informed determi­
nation as to the need for and feasibility of a
Federal regulatory structure in implementing the
objectives of the act.
The Board appreciates the urgency of ending
discrimination in the granting of credit, and that
is why we favor immediate enactment of a
self-enforcing statute. However, we are con­
vinced that the interests of borrowers and credi­
tors alike will best be served if sufficient time
is allowed to study the basis upon which any
Federal regulatory structure would have to be
founded. Our experience with rule writing under
Truth in Lending demonstrated that a period of
1 year to develop regulations was barely ade­
quate. The Board’ s task there was to construct

490

FEDERAL RESERVE BULLETIN □ JULY 1974

rules dealing with a quantifiable subject matter
basically familiar to it. At least as much time
will be needed to investigate the difficult task
of developing regulations relating to the very
subjective and judgmental nature of discrim­
ination in credit granting. In the interim, the
Board is, of course, prepared to do a vigorous
job of assuring compliance with the act’ s provi­
sions among State member banks.
In conclusion, allow me to reiterate the
Board’s support for the purposes of this legisla­

tion. There is no room for discrimination in a
society or a financial system such as ours. His­
tory teaches us that this Nation’ s social and
economic growth was made possible by contri­
butions from all segments of its diverse citi­
zenry. Our Constitution demands that the fur­
therance of individual dignity and human rights
shall remain our continual goal. The Board
applauds this subcommittee’ s efforts to fashion
practical legislation that will help to achieve
these ideals in the credit field.

Statement by George W. Mitchell, Vice Chair­
man, Board of Governors of the Federal Re­
serve System, before the Committee on Banking
and Currency, U.S. House of Representatives,
July 15, 1974.

fits— in the form of improved opportunities for
individual savers-investors and reduced pres­
sures on the commercial paper market— and a
stronger financial condition for issuing bank
holding companies.
On the other hand, the amount of disinterme­
diation involving banks and thrift institutions
could be significant if the volume of offerings
of this type were to become large. It should
be noted, however, that there would not be a
dollar-for-dollar transfer of funds out of deposi­
tary institutions and into such issues, since a
sizable proportion of the subscriptions to such
issues undoubtedly would represent shifts from
other market instruments. Moreover, there is no
way of predicting in advance the probable effect
on the flow of mortgage funds or the deposits
of banks and thrift institutions in a particular
area, because the notes are to be marketed
nationally through dealers, not locally from
banking offices. Moreover, it is certainly possi­
ble that the proposed issue will, to some extent,
compete directly for funds that might otherwise
be placed in time or savings deposits at these
institutions. Their net inflows have already
fallen off substantially in recent months, and any
significant additional diversion of funds is a
matter for public concern.
It is not obvious, however, that the long-run
public interest will be served by prohibiting or
limiting innovative financing efforts of this type.
The Board believes it would be best to observe
the results of this innovation in its early stages
before arriving at a conclusion on this matter.
In the Board’ s view, this is particularly so

Mr. Chairman and members of the committee,
the Board of Governors welcomes the opportu­
nity to appear today and comment on the proper
role for public policy in responding to financing
initiatives along the lines of the floating rate note
proposed by Citicorp. In various public state­
ments recently, the Board has indicated that the
implications of securities offerings of the type
proposed by Citicorp deserve intensive consid­
eration by appropriate Government officials and
the Congress so that the best interests of all
segments of the public may be served.
The characteristics of the Citicorp issue have
been developed with the individual saver-investor in mind. The note as now modified would
include an interest rate that varies over time with
the yield on 90-day Treasury bills, and would,
after June 1, 1976, provide the holder with the
option of presenting the notes for redemption
semiannually on 30 days’ notice. The new se­
curity would be listed on the New York Stock
Exchange and would be marketed by brokers
all over the country. The offering would com­
pete with a variety of alternatives, but particu­
larly with Treasury bills and certificates of de­
posit in banks and thrift institutions.
The Board believes that there is much in the
Citicorp initiative, especially as now proposed,
that offers promise of significant public bene­




STATEMENTS TO CONGRESS

because the proposed Citicorp offering has been
revised to withhold the redemption option for
about the first 2 years after issue.
If, nevertheless, legislation is deemed to be
desirable, then several approaches come to
mind. First, any serious damage to housing
finance and thrift institutions might be offset by
special assistance programs. Other public offi­
cials are better equipped to comment on specific
measures that could be adopted, but one obvious
approach would be to expand the present pro­
gram of subsidized lending by the Federal home
loan banks. Also, since mutual savings banks
may be especially vulnerable, such programs of
assistance might be expanded to include them.
Second, the Congress might wish to encour­
age thrift institutions to compete with such of­
ferings by themselves offering a variable-rate
instrument of some type. For example, they
could duplicate the Citicorp offering by selling
notes through brokers. Or they could issue and
market longer-term obligations with flexible
rates. However, if the obligations were to be
issued directly by thrift institutions, it would be
important that investors be fully aware that such
issues were not insured deposits. Even in the
case of the Citicorp issue, the Board recom­
mended to the Securities and Exchange Com­
mission that the prospectus be amended to in­
clude in 10-point bold-face type a similar cau­
tion.
Third, the Congress might indicate its intent
to give the Board authority to subject note issues
of bank holding companies and their nonbank
subsidiaries to regulation— regardless of the in­
tended use of the proceeds. This would make
it possible, for example, for the Board to limit
the ability of the issuer to offer investors the
option of periodic redemption. The Board be­
lieves that a redemption opportunity in the early
life of the issue is the principal feature making
such issues appear similar to a time deposit.
Fourth, another approach would be to expand
the Board’ s regulatory authority with respect to
the issuance of “ cease-and-desist” orders. This
could enable the Board, on a case-by-case basis,
to determine if a proposed note issue by a bank
holding company or its nonbank affiliates would
have a sufficiently adverse impact on financial
markets or depositary institutions to justify im­




491

position of appropriate restrictions by the Board.
Such authority would be so broad and flexible
in character as to be difficult to administer.
None of these approaches would give the
Board or any other agency authority to deal with
any offerings outside the bank holding company
area. If the Citicorp offering is marketed and
has a good investor acceptance, offerings of this
type will undoubtedly spread. In any event,
issuers will not be limited to bank holding
companies and their subsidiaries, but will likely
include public utilities and national firms pri­
marily engaged in nonfinancial business.
With regard to H.R. 15869, a bill introduced
only on Thursday by the distinguished chairman
on behalf of himself and four members of the
committee, the Board has not had time to reach
any firm views. And, even if we had been able
to come up with such views, we would not want
to make them public until we have had time
to test our thinking. At the moment, then, we
believe enactment of H.R. 15869 would be
premature. I might add that in our preliminary
review of the bill’s provisions we have encoun­
tered a number of difficulties that have strength­
ened our determination to recommend against
action of this kind.
For example, the bill would require referral
by the Board of its determination on any appli­
cation to a committee consisting of the Board
of Governors, the Board of Directors of the
Federal Deposit Insurance Corporation, the
Federal Home Loan Bank Board, and the Sec­
retary of the Treasury. In view of existing
responsibilities on each of the agencies named,
including the Securities and Exchange Com­
mission, whose views would also be solicited,
we believe the proposed “ committee referral”
procedure to be unduly burdensome and, be­
cause of this fact, would not contribute signifi­
cantly to the intended congressional purpose.
Preferable, it seems to me, would be a require­
ment that the agency having determination au­
thority be required to elicit the views of the
agencies comprising the committee, as well as
of the SEC, before making a final determination.
A similar solicitation of views and comments
is followed under the Bank Merger Act and,
in a more limited way, by the Board under the
Bank Holding Company Act. Another concern

492

FEDERAL RESERVE BULLETIN □ JULY 1974

with the committee bill relates to its applica­
bility to note issues having a redemption right
within 10 years or less. We believe that a shorter
minimum redemption period should be made the
subject of the proposed regulatory legislation.
Finally, the Board is concerned that an unduly
heavy “ burden of proof” is placed on an appli­
cant seeking approval under the bill’ s provi­
sions. A more reasonable requirement might be
a provision that would authorize agency ap­
proval only if the proposal were found not to
be substantially at variance with the Act, nor
to have a likely adverse impact on financial
markets, and to be in the public interest.
A question has been raised as to whether the
Board of Governors now has the requisite au­
thority in Sec. 19(a) of the Federal Reserve Act
to regulate the Citicorp issue. Because this
question is now being litigated in the U.S.
District Court for the Southern District of New
York, it would not be appropriate for me to
comment in detail on this matter. Suffice it to
say that the Board believes its present statutory
powers do not authorize us either to prevent a
Citicorp-type of issue or to regulate its terms.
The Board also believes that there are no legal
grounds for objecting to the issue under the

terms of the Bank Holding Company Act. In
fact, the financing will improve the financial
position of Citicorp. Indeed the structure of our
entire financial system would be strengthened
if the maturity profile of liabilities of financial
institutions, and depositary institutions in par­
ticular, were more nearly matched with the
maturity profile of their assets.
I should note that our view regarding our
authority to effect regulation of the proposed
Citicorp issue would be no different even with
passage of the cease-and-desist amendment
contained in the Senate-passed version of H.R.
11221, inasmuch as no aspects of the Citicorp
proposal would appear to support findings of the
nature contemplated by Sec. 8(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1818(b)).
As a final note, I think it might be relevant
for the recent correspondence with appropriate
attachments involving the Chairman of the
Board of Governors and myself and the Securi­
ties and Exchange Commission, the chairman
of this committee, and the chairman of Citicorp
be included in the record of this hearing. To
that end, I have copies of this correspondence,
which I shall be happy to make available to the
committee. (See Announcements, pp. 527-29.)




Record of Policy Actions
o f th e F e d e ra l O p e n M a rk e t C o m m it te e

MEETING HELD ON APRIL 15-16, 19741
Domestic policy directive
The information reviewed at this meeting suggested that real output
of goods and services had declined appreciably in the first quarter
of 1974— in large part because of the impact of the oil shortage—
and that the GNP implicit deflator had risen at an exceptionally
fast pace. Staff projections continued to suggest that real output
would change little in the second quarter and that the rise in prices
would remain rapid.
In March industrial production declined moderately, after having
receded more in January and February than had been indicated
by earlier estimates for those months. Employment in manufac­
turing establishments also declined further in March, while em­
ployment in other nonagricultural sectors changed little. The un­
employment rate, at 5.1 per cent, was about the same as in the
preceding 2 months; both the labor force and total employment
remained near the levels of January. According to the advance
report, retail sales expanded moderately in March.
Wholesale prices of farm and food products declined in March,
reflecting for the most part decreases in prices of livestock, meats,
grains, cotton, and wool. Wholesale prices of industrial commodi­
ties rose sharply; while price increases were widespread, they were
extraordinarily large for iron and steel, nonferrous metals, fuels
and power, chemicals, and some types of machinery. In February
the consumer price index had risen substantially further, with a
significant share of the rise again accounted for by large increases
in foods, fuels, and power. The index of average hourly earnings
of production workers on nonfarm payrolls advanced moderately

lrThis meeting began on the afternoon o f April 15 and continued on the follow ing
morning.




493

494




FEDERAL RESERVE BULLETIN □ JULY 1974

in the first quarter of the year, after having risen substantially in
the second half of 1973, but there were signs that the slowdown
resulted at least in part from temporary influences.
The latest staff projections, like those of 4 weeks earlier, sug­
gested that easing of the oil shortage following termination of the
Arab embargo on oil shipments to the United States would have
no more than a marginally expansive impact on over-all real output
until the summer. For the second quarter, expectations were that
business fixed investment would continue to expand; that govern­
ment purchases of goods and services would grow at a substantial
rate; and that personal consumption expenditures would strengthen.
It was also anticipated, however, that residential construction
outlays would fall further and that net exports would continue to
decline.
According to the staff projections, real GNP would grow moder­
ately in the second half of the year. It was anticipated that
residential construction outlays would turn up; that business fixed
investment would rise further; that government purchases of goods
and services would continue to grow at a fairly rapid pace; and
that disposable personal income and consumption expenditures
would expand appreciably more than in the first half.
In foreign exchange markets the dollar depreciated against lead­
ing foreign currencies in March and the first few days of April
and then recovered somewhat. Market activity in late March and
early April was dominated by shifting expectations concerning the
value of the German mark. The U.S. balance of payments on the
official settlements basis, which had shifted from a substantial
surplus in January to a deficit in February, was in deficit again
in March. The surplus on U.S. merchandise trade had fallen sharply
in February, chiefly because of a large rise in the cost of imported
fuel.
Growth in total loans and investments at U.S. commercial banks
remained rapid in March, reflecting an exceptionally large increase
in business loans. In contrast with February, effective rates on bank
loans were favorable relative to rates in the commercial paper
market, encouraging businesses to concentrate their strong credit
demands at banks. In late March and early April the prime rate
applicable to large corporations was raised in five steps from 83A
per cent to 10 per cent at most banks.

RECORD OF POLICY ACTIONS OF FOMC

In March the narrowly defined money stock (M j)2 again expanded
at a rapid pace. Over the first quarter as a whole, however, M x
grew at an annual rate of about 6.5 per cent, down from a rate
of about 7.5 per cent in the preceding quarter.3 Banks’ net inflows
of time and savings deposits other than large-denomination C D ’ s
slowed substantially in March, and the broader measure of the
money stock (M 2) 4 rose more moderately than M x. In order to
help finance growth in loans, banks stepped up the issuance of
large-denomination C D ’ s and increased borrowings in the Euro­
dollar market in March and early April. As a result, the bank credit
proxy5 expanded sharply.
Net deposit inflows at nonbank thrift institutions in March re­
mained at about the improved rate of the immediately preceding
months. Growth in the measure of the money stock that includes
such deposits (M 3)6— like growth in M 2— was more moderate than
that in M x. Contract interest rates on conventional mortgages and
yields in the secondary market for Federally insured mortgages
rose somewhat in March, after having declined over the preceding
5 months.
On March 20 the Treasury announced that it would raise $4
billion in new money by auctioning an additional $2.5 billion of
June tax-anticipation bills on March 26 and $1.5 billion of 2-year
notes on March 28. The bills and notes were sold at average prices
to yield 8.306 and 8.08 per cent, respectively. The Treasury was
expected to announce on May 1 the terms of its mid-May refunding;
of the maturing issues, $4.05 billion were held by the public.

2Private demand deposits plus currency in circulation.
3 Growth rates cited are calculated on the basis o f the daily-average level in

the last month o f the quarter relative to that in the last month o f the preceding
quarter. The measure o f the money stock subsequently was revised upward to
reflect new benchmark data for deposits at nonmember banks; on the revised
basis M x grew at an annual rate o f about 7 per cent over the first quarter, down
from a rate o f about 9 per cent in the preceding quarter.
4
plus commercial bank time and savings deposits other than large-denomination C D ’ s.
5 Daily-average member bank deposits, adjusted to include funds from
nondeposit sources.
6 M 2 plus time and savings deposits at mutual savings banks and at savings
and "loan associations.




495

496




FEDERAL RESERVE BULLETIN □ JULY 1974

System open market operations since the March 18-19 meeting
had been guided by the Committee’ s decision to seek bank reserve
and money market conditions that would moderate growth in
monetary aggregates over the months ahead, while taking account
of financial market developments, including the prospective Treas­
ury financing. Soon after the meeting, operations were directed
toward additional tightening in bank reserve and money market
conditions. The Federal funds rate rose somewhat, and member
bank borrowings increased appreciably.
Toward the end of the inter-meeting period, available data
suggested that in the March-April period M x would grow at a rate
somewhat above the specified range of tolerance and that— for the
most part because of banks’ issuance of large-denomination C D ’ s
and borrowings in the Euro-dollar and commercial paper mar­
kets— reserves available to support private nonbank deposits
(R PD ’ s) would grow at a rate well above the specified range.
Operations were directed toward further tightening in bank reserve
and money market conditions, and the Federal funds rate— which
had been around 9% per cent just before the March meeting— rose
further to about IOV4 per cent. In the 3 weeks ending April 10,
member bank borrowings averaged about $1,470 million, about
$315 million above the average in the preceding 4 weeks.
Short- and long-term market interest rates rose considerably
further in the period between the Committee’ s meeting on March
18-19 and this meeting— in response to strong business credit
demands, to the tightening in money market conditions, and to
growing market expectations that economic activity in the months
ahead would not be as weak as had been thought earlier. However,
toward the end of the period Treasury bill rates moved downward
against the trend of other short-term rates, in part because of
demands for bills by foreign monetary authorities and also by small
investors who were attracted by the high yield relative to interest
rates available on time deposits. At the time of this meeting the
market rate on 3-month Treasury bills was 7.95 per cent, down
from an inter-meeting period high of 8.65 per cent on April 4-5
but unchanged from the rate at the time of the March meeting.
In markets for long-term securities, the rise in rates led to
somewhat unsettled conditions for a time. Some offerings of new
corporate and State and local government bonds that had been

RECORD OF POLICY ACTIONS OF FOMC

scheduled for March and early April were postponed or canceled.
Nevertheless, the volume of new public offerings of corporate
bonds was moderately larger in March than in February, while
the volume of State and local government offerings was little
changed. A small increase in the over-all volume of public offerings
was in prospect for April.
A staff analysis suggested that growth in the demand for money
over the second and third quarters of 1974 was likely to be
somewhat greater than had been expected earlier. Consequently,
it appeared likely that if M x were to be held to a growth rate
consistent with the Committee’ s earlier longer-run objectives for
the monetary aggregates, money market conditions would continue
to tighten in the period immediately ahead and market interest rates
would rise somewhat further. As a result, net inflows of consumertype time and savings deposits to banks and nonbank thrift institu­
tions would decline, bringing about reductions in the rates of growth
in both M 2 and M 3. The analysis also indicated that if the rate
of growth in M x were to be moderately higher than that consistent
with the Committee’ s earlier longer-run objectives, little change
in money market conditions and in market interest rates would
be likely; under these conditions, net inflows of consumer-type
time and savings deposits to banks and nonbank thrift institutions
would decline less.
The staff analysis suggested that, because of the sizable increase
that had taken place in early April, expansion in M x over the
April-M ay period as a whole would be at a somewhat higher rate
than desired for the longer term, even if money market conditions
were to tighten further in the period immediately ahead. Growth
in M 2 in the 2-month period also was expected to be somewhat
higher than desired for the longer run, even though net inflows
of consumer-type time and savings deposits to banks and nonbank
thrift institutions were expected to recede.
The Committee concluded that the economic situation and out­
look continued to call for moderate growth in monetary aggregates
over the longer run and that, in view of the rapid monetary
expansion recently, it would seek to achieve less rapid growth in
monetary aggregates over the months ahead. The longer-run growth
rate for M x accepted by the Committee was revised upward slightly,
however, since attainment of the growth rate contemplated pre­




497

498




FEDERAL RESERVE BULLETIN □ JULY 1974

viously appeared likely to be associated with sizable declines in
net inflows of consumer-type time and savings deposits to banks
and nonbank thrift institutions.
Taking account of the staff analysis, the Committee decided that
progress toward its objective of moderating monetary growth could
be achieved even if rates of expansion in the aggregates over the
April-M ay period were temporarily above those desired for the
longer term. At the same time, however, the members agreed that
more rapid progress toward moderate monetary growth should be
accepted in the event that growth rates in the period ahead proved
to be lower than expected at present. Consequently, they decided
that the ranges of tolerance for the 2-month period should be wide
enough to allow for such lower rates of growth. Specifically, for
the April-M ay period the Committee adopted ranges of tolerance
of 3 to 7 per cent and 5Vi to 8 V2 per cent for the annual rates
of growth in M x and M 2, respectively. The members agreed that
rates of growth within those ranges would be likely to involve
RPD growth during the same period at an annual rate within a
6 to 11 per cent range of tolerance, and they decided that in the
period until the next meeting the weekly average Federal funds
rate might be permitted to vary in an orderly fashion from as low
as 9% per cent to as high as 10% per cent, if necessary, in the
course of operations.
The members also agreed that, in the conduct of operations,
account should be taken of the forthcoming Treasury financing and
of international and domestic financial market developments. It was
understood that the Chairman might call upon the Committee to
consider the need for supplementary instructions before the next
scheduled meeting if significant inconsistencies appeared to be
developing among the Committee’ s various objectives and con­
straints.
The following domestic policy directive was issued to the
Federal Reserve Bank of New York:

The information reviewed at this meeting suggests that real output
of goods and services declined appreciably in the first quarter and
that price increases were exceptionally large. The decline in eco­
nomic activity reflected mainly the impact of the oil shortage, which
is being eased by the ending of the oil em bargo. In M arch industrial

RECORD OF POLICY ACTIONS OF FOMC

499

production and manufacturing employment receded further, but
retail sales strengthened. The unemployment rate changed little,
remaining slightly above 5 per cent. Prices o f farm and food products
declined in M arch, but increases among industrial commodities were
widespread and extraordinarily large. Advances in w age rates were
moderate in the first quarter.
In M arch the dollar depreciated further against leading foreign
currencies, and the balance o f payments was in deficit on the official
settlements basis.

The

U .S .

trade

surplus diminished

again

in

February as the cost o f imported oil rose sharply.
The narrowly defined money stock increased sharply again in
M arch. Broader measures o f the money stock rose more moderately,
however, as net inflows of consumer-type time deposits at banks
slow ed substantially. Business short-term credit demands remained
strong, with demands at banks exceptionally large. T o help finance
loan growth, banks in late M arch and early A pril stepped up the
issuance o f large-denomination C D ’s and also increased borrowings
from abroad. Both short- and long-term market interest rates have
risen considerably further in recent weeks.
In light of the foregoing developments, it is the policy o f the
Federal Open M arket Committee to foster financial conditions con­
ducive to resisting inflationary pressures, supporting a resumption
of real

economic

growth,

and

maintaining

equilibrium

in the

country’s balance o f payments.
T o implement this policy, while taking account o f the forthcoming
Treasury financing and of international and domestic financial market
developments, the Committee seeks to achieve bank reserve and
money market conditions that w ould moderate growth in monetary
aggregates over the months ahead.
V o te s fo r

this

action:

M essrs.

Burns,

H a y es,

Black, Brim m er, Bucher, C lay , H olland, K im brel,
M itchell, Sheehan, W allic h , and W in n . Votes
against this action: N one.

Subsequent to the meeting it appeared that in the April-M ay
period the annual rates of growth in the monetary aggregates would
be above the upper limits of the ranges that had been specified
by the Committee. Largely because of unexpectedly strong money
market pressures, the Federal funds rate was around 11 per cent
on April 22 and 23, and in the statement week ending April 24
it seemed likely to average slightly above the upper limit of 103A




500




FEDERAL RESERVE BULLETIN □ JULY 1974

per cent set by the Committee. The System Account Manager
reported that in order to bring the funds rate back within the range
of tolerance he would have to expand reserve-supplying operations,
thus stimulating further growth of the monetary aggregates. On
April 24, in view of those circumstances and against the background
of the increase in Federal Reserve discount rates announced that
day, Chairman Burns recommended that the upper limit of the funds
rate constraint be raised by lA of a percentage point to 11 per
cent. The members of the Committee— with the exception of Mr.
Bucher— concurred in the Chairman’ s recommendation.
In mid-May available data suggested that in the April-M ay
period the annual rates of growth in M 1 and M 2 would be within
the short-run ranges of tolerance specified by the Committee while
the rate of growth in R PD ’ s would be well above its specified
range. The Federal funds rate remained above the 11 per cent upper
limit of the Committee’ s range of tolerance despite System efforts
to achieve a lower rate; in the statement week ending May 15,
it averaged 11.46 per cent. Major member banks apparently pre­
ferred to avoid borrowing at the discount window, bidding in the
Federal funds market instead. In addition, a technical market
shortage of collateral for repurchase agreements hampered efforts
to provide reserves. In any event, it would have been difficult
to bring the funds rate back down to 11 per cent without providing
nonborrowed reserves through open market operations on a scale
that would have risked market misinterpretation of the System’ s
policy intent. On May 17 Chairman Burns recommended that the
Committee take note of the difficulties faced by the System Account
Manager in recent days and, in view of the likelihood that those
conditions would persist over the next few days, that it change
the ceiling guideline for the funds rate from 11 to 11% per cent.
The members— with the exception of Mr. Holland— concurred in
the Chairman’ s recommendation.

Records o f policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board’ s A n n u a l R ep o rt,
are released about 90 days after the meeting and are subsequently published in
the B u l l e t i n .

Law Department
Statutes, regulations, interpretations, and decisions

SECURITIES CREDIT TRANSACTIONS

do in fact, make a market in such stock including

The Board o f Governors has amended its margin

making regularly published bona fide bids and

regulations to incorporate in the requirements for

offers for such stock for their ow n accounts, or

inclusion and continued inclusion on the List of

the stock is registered on a securities exchange

OTC

that is exempted by the Securities and Exchange

M argin

Stocks significant changes

which

have occurred in the over-the-counter (O T C ) mar­

Com m ission from registration as a national se­

ket.

curities exchange pursuant to section 5 o f the
Securities Exchange A ct o f 1934 (15 U .S .C . 78e),

AM END M ENTS TO REG U LATIO NS
G, T, AN D U

as defined in S E C

1. Effective July 25, 1974, subparagraph (4 ) of

2 4 0 .1 2 g 5 -l), o f the stock w ho are not officers,

section

2 0 7 .2 (f);

22 0.2(e);

and

subparagraph
subparagraph

(4 )
(4 )

of
of

Jfc

*

*

*

such stock to such list o f O T C margin stocks, if
such action is

necessary or appropriate in the public interest.

1.

^

Effective July 25, 1974, paragraphs (d ) and

(e ) o f section 207.5

§

more o f the stock.

on a national securities exchange from or add any

%

(17 C .F .R .

section

m ay omit or rem ove any stock that is not traded

4:

12g5-l

directors, or beneficial owners o f 10 per cent or

(4 ) The foregoing notwithstanding, the Board

in the judgment o f the B oard,

Rule

section

2 2 1.3(d ), are amended to read as fo llow s:

*

(3 ) There are 1,200 or more holders o f record,

are amended as set forth

(4 ) The issuer is organized under the laws o f
the United States or a State 9 and it, or a prede­
cessor in interest, has been in existence for at least
3 years,
(5 ) The stock has been publicly traded for at
least 6 months,
(6 ) D aily quotations for both bid and asked
prices for the stock are continuously available to
the general public,
(7 ) There are 500,000 or more shares o f such
stock outstanding in addition to shares held bene­
ficially by officers, directors, or beneficial owners
of more than 10 per cent o f the stock; and shall
meet two o f the three additional requirements that:

below :

(8 ) The shares described in subparagraph (7 ) of

S E C T IO N 207.5— S U P P L E M E N T

*

*

*

*

this paragraph have a market value o f at least $5
million,
(9 ) The minimum average bid price o f such

(d )

R eq u ire m en ts fo r inclusion on list o f O T C

stock, as determined by the Board, is at least $10

(4 ) o f § 2 0 7 .2 (f), such stock shall meet the re­

per share, and
(10 ) The issuer had at least $5 million o f capital,

quirements that:

surplus, and undivided profits.

m a rg in stock. Except as provided in subparagraph

(1 ) The stock is subject to registration under

(e )

R eq u ire m en ts fo r continued inclusion on

section 1 2 (g)(1 ) o f the Securities Exchange Act

list o f O T C

of 1934 (15 U .S .C .

in subparagraph (4 ) of § 2 0 7 .2 (f), such stock shall

7 8 7 (g )(1 )), is issued by an

insurance com pany subject to section 1 2 (g )(2 )(G )
(15 U .S .C .

7 8 7 (g )(2 )(G ))

that has at least $1

m a rg in stock. Except as provided

meet the requirements that:
(1 )

The stock continues to be subject to regis­

million o f capital and surplus, or is issued by a

tration under section

closed-end investment management company sub­

Exchange Act o f 1934 (15 U .S .C . 7 8 7 (g )(1 )), or

1 2 (g)(1 ) o f the Securities

ject to registration pursuant to section 8 o f the

if issued by an insurance company such issuer

Investment Com pany A ct of 1940 (15 U .S .C . §

continues to be subject to section 1 2 (g )(2 )(G ) (15

80a-8),
(2 ) Five or more dealers stand w illin g to, and




9A s d efin ed in 15 U .S .C . 7 8 c (a )(1 6 ).

501

FEDERAL RESERVE BULLETIN □ JULY 1974

502

and to have at least $1

closed-end investment management company sub­

million o f capital and surplus, or if issued by a

ject to registration pursuant to section 8 of the

closed-end investment management company such

Investment C om pany Act o f 1940 (15 U .S .C . §

issuer continues to be subject to registration pur­

80a-8),

U .S .C .

7 8 7 (g )(2 )(G ))

suant to section 8 o f the Investment Com pany Act

(2 ) Five or more dealers stand w illing to, and
do in fact, make a market in such stock including

of 1940 (15 U .S .C . § 80a-8).
(2 ) Three or more dealers stand w illing to, and

making regularly published bona fide bids and

do in fact, make a market in such stock including

offers for such stock for their ow n accounts, or

making regularly published bona fide bids and

the stock is registered on a securities exchange

offers for such stock for their ow n accounts, or

that is exempted by the Securities and Exchange

the stock is registered on a securities exchange

Com m ission from registration as a national se­

that is exempted by the Securities and Exchange

curities exchange pursuant to section

Com m ission from registration as a national se­

Securities Exchange A ct o f 1934 (15 U .S .C . 78e),

curities exchange pursuant to section 5 o f the
Securities Exchange A ct o f 1934 (15 U .S .C . 78e),
(3 ) There continue to be 800 or more holders
o f record, as defined in S E C Rule

12g5-1 (17

C .F .R . § 2 4 0 .1 2 g 5 -l), of the stock w ho are not
officers, directors, or beneficial owners o f 10 per

5 o f the

(3 ) There are 1,200 or more holders o f record,
as defined in S E C

Rule

12g5-l

(17 C .F .R .

§

2 4 0 .1 2 g 5 -l), o f the stock w ho are not officers,
directors, or beneficial owners o f 10 per cent or
more o f the stock,
(4 ) The issuer is organized under the laws of
the United States or a State 6 and it, or a prede­

cent or more o f the stock,
(4 ) The issuer continues to be a U .S . Corpora­

cessor in interest, has been in existence for at least
3 years,

tion,
(5 ) D aily quotations for both bid and asked
prices for the stock are continuously available to

(5 ) The stock has been publicly traded for at
least 6 months,
(6 ) D aily quotations for both bid and asked

the general public,
(6 ) There are 300,000 or more shares o f such
stock outstanding in addition to shares held bene­

prices for the stock are continuously available to
the general public,

ficially by officers, directors, or beneficial owners

(7 ) There are 500,000 or more shares o f such

o f more than 10 per cent o f the stock; and shall

stock outstanding in addition to shares held bene­

meet two o f the three additional requirements that:

ficially by officers, directors, or beneficial owners

(7 ) The shares described in subparagraph (6 ) of

of more than 10 per cent o f the stock; and shall

this paragraph continue to have a market value

meet two o f the three additional requirements that:

o f at least $2.5 million,

(8 ) The shares described in subparagraph (7 ) of
this paragraph have a market value o f at least $5

(8 ) The minimum average bid price o f such
stock, as determined by the Board, is at least $5
(9 ) The issuer continues to have at least $2.5
million o f capital, surplus, and undivided profits.
2.

Effective July 25, 1974, paragraphs (h ) and

(i) o f section 220.8

million,
(9 ) The minimum average bid price o f such

per share, and

are amended as set forth

stock, as determined by the B oard, is at least $10
per share, and
(10) The issuer had at least $5 million o f capital,
surplus, and undivided profits.
(i)

below :
S E C T I O N 220.8— S U P P L E M E N T

R eq u ire m en ts fo r continued inclusion on

list o f O T C

m a r g in stock. Except as provided

in subparagraph (4 ) o f § 22 0.2(e), O T C margin
stock shall meet the requirements that:

(h )

R eq u ire m en ts fo r inclusion on list o f O T C

m a rg in stock. Except as provided in subparagraph
(4 ) o f § 22 0.2(e), O T C margin stock shall meet
the requirements that:
(1 )

The stock is subject to registration under

section 1 2 (g)(1 ) o f the Securities Exchange Act
o f 1934 (15 U .S .C . 7 8 7 (g )(1 )), is issued by an
insurance com pany subject to section 1 2 (g )(2 )(G )
(15 U .S .C .

7 8 7 (g )(2 )(G ))

that has at least $1

million o f capital and surplus, or is issued by a




(1 )

The stock continues to be subject to regis­

tration under section

1 2 (g)(1 ) o f the Securities

Exchange A ct o f 1934 (15 U .S .C . 7 8 7 (g )(1 )), or
if issued by an insurance company such issuer
continues to be subject to section 1 2 (g )(2 )(G ) (15
U .S .C .

7 8 7 (g )(2 )(G ))

and to have at least $1

million of capital and surplus, or if issued by a
closed-end investment management company such
issuer continues to be subject to registration pur-

6As defined in 15 U.S.C. 78c(a)(16).

503

LAW DEPARTMENT

suant to section 8 o f the Investment Com pany Act
o f 1940 (15 U .S .C . § 80a-8).

(2 ) Five or more dealers stand w illin g to, and
do in fact, make a market in such stock including

(2 ) Three or more dealers stand w illing to, and
do in fact, make a market in such stock including

making regularly published bona fide bids and
offers for such stock for their ow n accounts, or

making regularly published bona fide bids and

the stock is registered on a securities exchange

offers for such stock for their ow n accounts, or

that is exempted by the Securities and Exchange

the stock is registered on a securities exchange

Com m ission from registration as a national se­

that is exempted by the Securities and Exchange

curities exchange pursuant to section 5 o f the

Com m ission from registration as a national se­

Securities Exchange A ct of 1934 (15 U .S .C . 78e),

curities exchange pursuant to section 5 o f the
Securities Exchange A ct o f 1934 (15 U .S .C . 78e),
(3 ) There continue to be 800 or more holders
o f record, as defined in S E C Rule

12 g 5 -1 (17

(3 ) There are 1,200 or more holders o f record,
as defined in S E C Rule

12g5-l

(17 C .F .R .

§

2 4 0 .1 2 g 5 -l), of the stock w ho are not officers,
directors, or beneficial owners o f 10 per cent or

C .F .R . § 2 4 0 .1 2 g 5 -l), o f the stock w ho are not

more o f the stock,

officers, directors, or beneficial owners o f 10 per

(4 ) The issuer is organized under the laws of
the United States or a State 9 and it, or a prede­

cent or more o f the stock,
(4 ) The issuer continues to be a U .S . C orpora­

cessor in interest, has been in existence for at least
3 years,

tion,
(5 ) D aily quotations for both bid and asked

(5 ) The stock has been publicly traded for at

prices for the stock are continuously available to

least 6 months,

the general public,
(6 ) There are 300,000 or more shares o f such

prices for the stock are continuously available to

stock outstanding in addition to shares held bene­

the general public,

(6 ) D aily quotations for both bid and asked

ficially by officers, directors, or beneficial owners

(7 ) There are 500,000 or more shares o f such

o f more than 10 per cent o f the stock; and shall

stock outstanding in addition to shares held bene­

meet two o f the three additional requirements that:

ficially by officers, directors, or beneficial owners

(7 ) The shares described in subparagraph (6 ) o f

o f more than 10 per cent o f the stock; and shall

this paragraph continue to have a market value

meet two o f the three additional requirements that:

o f at least $2.5 m illion,

(8 ) The shares described in subparagraph (7 ) of

(8 ) The minimum average bid price o f such
stock, as determined by the Board, is at least $5
per share, and
million o f capital, surplus, and undivided profits.
Effective July 25, 1974, paragraphs (d ) and

(c ) o f section 221.4

million,
(9 ) The minimum average bid price o f such

(9 ) The issuer continues to have at least $2.5
3.

this paragraph have a market value o f at least $5

are amended as set forth

b e lo w :

stock, as determined by the Board, is at least $10
per share, and
(10 ) The issuer had at least $5 million o f capital,
surplus, and undivided profits.
(e )

S E C T I O N 221.4— S U P P L E M E N T

R eq u ire m en ts fo r continued inclusion on

list o f O T C

m a rg in stock. Except as provided

in subparagraph (4 ) o f § 22 1 .3 (d ), O T C margin
stock shall meet the requirements that:
(d )

R eq u ire m en ts fo r inclusion on list o f O T C

(1 ) The stock continues to be subject to regis­

m a rg in stock. Except as provided in subparagraph

tration under section

(4 ) o f § 22 1 .3 (d ), O T C margin stock shall meet

Exchange Act o f 1934 (15 U .S .C . 7 8 7 (g )(1 )), or
if issued by an insurance company such issuer

the requirements that:
(1 )

1 2 (g)(1 ) o f the Securities

The stock is subject to registration under

continues to be subject to section 1 2 (g )(2 )(G ) (15

section 1 2 (g)(1 ) o f the Securities Exchange Act

U .S .C .

of 1934 (15 U .S .C .

7 8 7 (g )(2 )(G ))

and to have at least $1

7 8 7 (g )(1 )), is issued by an

million o f capital and surplus, or if issued by a

insurance com pany subject to section 1 2 (g )(2 )(G )

closed-end investment management company such

(15 U .S .C .

issuer continues to be subject to registration pur­

7 8 7 (g )(2 )(G ))

that has at least $1

m illion o f capital and surplus, or is issued by a

suant to section 8 o f the Investment Com pany Act

closed-end investment management company sub­

o f 1940 (15 U .S .C . § 80a-8).

ject to registration pursuant to section 8 o f the

(2 ) Three or more dealers stand w illin g to, and

Investment Com pany A ct o f 1940 (15 U .S .C . §
80a-8),




9As defined in 15 U.S.C. 78c(a)(16).

FEDERAL RESERVE BULLETIN □ JULY 1974

504

BANK HOLDING COMPANIES

do in fact, make a market in such stock including
making regularly published bona fide bids and
offers for such stock for their ow n accounts, or
the stock is registered on a securities exchange

To

resolve

any

ambiguity

concerning

trust

com panies’ participation in the federal funds m ar­

that is exempted by the Securities and Exchange

ket, the Board

Com m ission from registration as a national se­

Regulation Y to delete the phrase “ sale of federal

curities exchange pursuant to section 5 o f the

funds” contained in section 2 2 5 .4 (a)(4 )(iii).

Securities Exchange A ct o f 1934 (15 U .S .C . 78e),
(3 ) There continue to be 800 or more holders
o f record, as defined in S E C Rule

12g5-l

(17

o f Governors

has amended

its

A M E N D M E N T T O R E G U L A T IO N Y
Effective

24,

cent or more o f the stock,

S E C T IO N 225.4— N O N B A N K I N G A C T IV IT IE S

(5 ) D aily quotations for both bid and asked
the general public, and
(6 ) There are 300,000 or more shares o f such
stock outstanding in addition to shares held bene­

amended

to

225.4(a)

follow s:

prices for the stock are continuously available to

is

section

officers, directors, or beneficial owners of 10 per

tion,

modified,

1974,

(4 )(iii),

(4 ) The issuer continues to be a U .S . C orpora­

as

June

C .F .R . § 2 4 0 .1 2 g 5 -l), o f the stock who are not

read

as

(a ) A ctivities closely related to b a n k in g o r
m a n a g in g o r co n tro llin g ban k s. * * * The fo l­
low ing activities have been determined by
Board

to be

so closely

the

related to banking or

managing or controlling banks as to be a proper
incident thereto:

ficially by officers, directors, or beneficial owners
o f more than 10 per cent o f the stock; and shall
meet two o f the three additional requirements that:
(7 ) The shares described in subparagraph (6 ) o f
this paragraph continue to have a market value
of at least $2.5 million,
(8 ) The minimum average bid price o f such
stock, as determined by the Board, is at least $5
per share, and
(9 ) The issuer continues to have at least $2.5

(4 )

* * * (iii) making o f call loans to securities

dealers or purchase o f money market instruments
such as certificates o f deposit, commercial paper,
government or municipal securities, and bankers
acceptances (such

authorized loans and invest­

ments, however, may not be used as a method
of channeling funds to nonbanking affiliates o f the
trust com pany). . . .

million o f capital, surplus, and undivided profits.

*

*

*

*

*

B AN K H O L D IN G C O M P A N Y A N D BANK M E R G E R O R D E R S
IS S U E D BY T H E B O A R D O F G O V E R N O R S

ORDERS UNDER SECTION 3 OF
BANK HOLDING COMPANY ACT

view s, has been given in accordance with § 3 (b )
of the Act. The time for filing comments and views

C O M M E R C E B A N C S H A R E S , I N C .,

has expired, and the Board has considered the

K A N S A S C I T Y , M IS S O U R I
O rder

D e n y in g

Com m erce

A c q u is it io n

Bancshares,

Inc.,

o f

application and all comments received, including
B an k

Kansas

City,

M issouri, a bank holding company within the

the views o f G randview Bank & Trust Com pany,
G randview , M issouri, in light o f the factors set
forth in § 3(c) o f the Act (12 U .S .C . 1842(c)).
Applicant is the third largest bank holding com ­

meaning o f the Bank H olding Com pany Act, has

pany and banking organization in M issouri

applied for the B o a rd ’s approval under § 3 (a )(3 )

terms o f total deposits, and the largest in terms

o f the A ct (12 U .S .C . 1 8 42 (a)(3 )) to acquire more

of number of subsidiary banks,

than 80 per cent o f the voting shares o f First

fo llow in g

National Bank o f Linn Creek ( “ B a n k ” ), C am -

through the acquisition o f banks. Applicant con­

denton, M issouri.

trols 27 subsidiary banks located throughout the

an aggressive program

in

and has been
of expansion

Notice o f the application, affording opportunity

State, with aggregate deposits approximating $1

for interested persons to submit comments and

billion, representing 7.7 per cent o f total com m er-




505

LAW DEPARTMENT

cial bank deposits in M isso u ri.1 A pplican t’s ac­

acquisition o f the largest bank in the Camdenton

quisition o f Bank w ould increase A pplican t’s con­

market, and w ould be clearly preferable to the

trol o f State deposits by an additional 0.16 per

proposal herein from a competitive standpoint.

cent; A pplican t’s rank among the State’s banking

Such an alternative proposal w ould serve to pro­

organizations w ould not change.

mote competition in the market. A ccordin gly, the

Bank (deposits of $21.6 m illion) is the largest

Board concludes that consummation o f this pro­

o f six banks in the Camdenton banking market

posal w ould have significantly adverse effects on

(approxim ated by Cam den C ounty), the primary

potential competition in Cam den County.

banking market in this case, and controls approxi­

In addition to the above factors, the B oard is

mately 44 per cent of total deposits in commercial

further concerned by the fact that Applicant ap­

banks in the market. The second and third largest

pears to be in the process of acquiring a substantial

banks in the market control, respectively, 28 per

position in a four-county region in the south o f

cent and 12 per cent o f the deposits in the market.

Lake

The market shares o f the remaining banks in the

Green, Polk,

of

the

Ozarks

region

(approximated

market range from 3 to 7 per cent. N on e o f the

This four-county region involves the Springfield,

Laclede, and Cam den

by

Counties).

six banks in the market are presently affiliated with

B olivar, Lebanon, and Camdenton banking mar­

a bank holding company.

kets. Applicant is the largest bank holding com ­

A pplican t’s subsidiary bank closest to Bank is

pany and second largest banking organization in

located 25 miles south o f Camdenton, in an adja­

the Springfield banking market, with two subsidi­

cent banking market, and there is no significant

ary banks controlling almost 29 per cent o f the

existing competition between Bank and any of

market deposits; the only bank holding company

A pplican t’s subsidiary banks. W h ile the effects o f

and second largest banking organization in the

A pplican t’s proposal on existing competition do

B olivar banking market, with one subsidiary bank

not raise serious impedimants to approval of the

controlling about 31 per cent o f the market depos­

application, consummation o f the proposal w ould,

its; the only bank holding company and the largest

in the B o a rd ’s view , have significantly adverse

banking

effects on potential competition in the Camdenton

market, with one subsidiary bank controlling al­

banking market. A s noted above, Applicant is a

most 46 per cent o f the market doposits. Applicant

rapidly expanding organization;

now proposes to enter the Camdenton banking

it w as

formed

organization

in

the Lebanon

banking

with four banks in 1968, acquired 10 more banks

market, where it w ould be the only bank holding

by m id -1970, and since then, has expanded from

company

14 to 27 banks. Applications have been proposed

through acquisition o f the market’s most signifi­

or are pending for the acquisition or formation o f

cant competitor by virtue o f its control o f about

six additional banks. Applicant operates in more

44 per cent of the market deposits. A pp roval o f

and

largest

banking

organization,

markets, and controls more subsidiary banks, than

this proposal w ould strengthen A pp lican t’s influ­

any other banking organization in M issouri. C am ­
den County is view ed as a relatively attractive

ence in this area o f the State relative to the area’s
other banking organizations and could raise further

market for entry since it serves as a major trade

barriers to entry by discouraging smaller bank

center for the Lake o f the Ozarks region and is

holding companies from entering this region.

and

O n the basis o f the foregoing and the facts o f

substantial econom ic development, both o f which

record, the Board concludes that consummation

are expected to continue into the future. Absent

of A pplican t’s proposal w ould

consummation o f the proposed acquisition, A p p li­

adverse effects on competition. Unless the Board

experiencing substantial population growth

have significant

cant may be regarded as one o f the most likely

finds that such anticompetitive effects are clearly

potential entrants into this market, having both the

outweighed in the public interest by the probable

incentive and the resources to enter by means o f

effect o f the transaction in meeting the conven­

a “ foothold” entry. G iven the present structure

ience and needs o f the community to be served,

o f banking in the relevant market, as w ell

the application must be denied.

as

A pplican t’s already sizable position in the State,

The financial and managerial resources and fu ­

a foothold acquisition o f a bank in the relevant

ture prospects o f

market is a realistic alternative to the proposed

banks, and those o f Bank, are regarded as satis­

‘ AH banking data are as of June 30, 1973, and reflect bank
holding company formations and acquisitions approved through
May 31, 1974.

cation. H ow ever, these considerations do not out­




Applicant and its

subsidiary

factory and consistent with approval o f the appli­
weigh the adverse competitive effects connected

506

FEDERAL RESERVE BULLETIN □ JULY 1974

with the proposal. There is some indication in the

“ foothold”

record that certain o f the banking needs o f the

implications of this proposal must be view ed in

entry

In addition,

the competitive

relevant market are not being met, particularly a

conjunction with an analysis of the absolute size

demand for convenient trust services. Applicant

o f the individual banks involved. The First N a ­

proposes to cause Bank to apply for trust powers

tional Bank of Linn Creek has deposits of only

and to assist Bank in the provision o f trust ser­

$21.6 million, and acquisition of such a small bank

vices. W h ile such improvements in B a n k ’s ser­

w ould, in my view , have only minimal adverse

vices

competitive consequences.

lend

some

weight

toward

approval,

the

Board does not consider these factors sufficient

The majority is apparently concerned with a

to outweigh clearly the significantly adverse com ­

concept of “ multi-market regional dom inance.”

petitive effects o f the proposal.

The m ajority’s view is that A pplican t’s presence

It is the B o a rd ’s judgment that consummation

in the Springfield, Camdenton, B olivar, and L e ­

o f the proposed acquisition w ould not be in the

banon banking markets would give Applicant a

public interest and that the application should be

disproportionate influence in the region and have

denied.

an adverse effect on competition there.

O n the basis o f the record, the application is
denied for the reasons summarized above.
B y order o f the Board o f Governors, effective
June 20, 1974.

In the

context o f the present application, I w ould not
regard the four-county region as a relevant area
in which to assess the competitive impact o f this
proposal. In my view , the proper geographic area

Voting for this action: Vice Chairman Mitchell and Gover­
nors Brimmer, Bucher, and Holland. Voting against this ac­
tion: Governor Sheehan. Absent and not voting: Chairman
Burns and Governor Wallich.

(S ign ed )
[s e a l]

B.

for competitive analysis o f A pplicant’s proposal
is the Camdenton banking market and, in that area,
the proposal w ould not have a significant adverse
effect on competition.

F e ld b e r g ,

In addition, there are significant public benefits

Secretary o f the Board.

associated with this proposal. The financial re­

C h e s te r

sources and managerial expertise o f Applicant, as
one o f the State’s leading banking organizations,
D is s e n t in g

State m e n t

G overnor

o f

Sh eeh an

should assist Bank in the expansion of its services
to the community,

particularly with regard

to

I dissent from the m ajority’s denial o f this
application. In my view , any slight anticompeti­

meeting the demand for loans in excess o f B a n k ’s

tive effects that might result from the proposal are

rural market by helping to meet the peak seasonal

lending limit and stabilizing the economy o f this

outweighed by the public benefits that w ould result

demands o f the tourist industry. In addition, A p ­

from the increased competition and financial e x ­

plicant w ill enable Bank to offer trust services,

pertise that w ould accompany A pp lican t’s entry

which are not presently available in the county.

into the Camdenton banking market.

For the foregoing reasons, it is my view that

W h ile consummation o f the proposed acquisi­

the benefits to the public to be derived from this

tion w ould eliminate the possibility o f competition

proposal outweigh any slight adverse effects on

developing between Applicant and Bank, I do not

competition that might flow from the proposal.

believe the development o f this potential competi­

Accordingly, I w ould approve the application.

tion to be likely, either by means o f A pplicant’s
entry into the market de novo or by “ foothold”

F IR S T C I T Y B A N C O R P O R A T I O N O F

acquisition. The population o f Cam den County is

T E X A S , IN C .,

less than 14,000 people and, although the C am ­

H O USTO N, TEXAS

denton banking market has experienced a signifi­
cant rate o f population

increase over the past

O rder

D e n y in g

A c q u is it io n

o f

B an k

decade (46 per cent), in actual numbers the in­

First City Bancorporation o f Texas, In c ., H o u s­

crease has been only 4,000 people. In addition,

ton, Texas, a bank holding company within the

other indicators such as the deposits per banking

meaning o f the Bank H olding Com pany A ct, has

office ratio ($8.1 million for the Camdenton market

applied for the B o a rd ’s approval under § 3 (a )(3 )

versus $16.9 million for the State), and population

of the Act (12 U .S .C . 18 42 (a)(3 )) to acquire 100

per banking office ratio (2,540

per cent o f the voting shares (less directors’ quali­

for the market

versus 5,255 for the State) also suggest that the

fying

market is not especially attractive for de novo or

M eyerland Bank, Houston, Texas ( “ B an k ” ). The




shares)

of

the

successor

by

merger

to

507

LAW DEPARTMENT

bank into which Bank is to be merged has no

southwestern portion o f the Houston S M S A , about

significance except as a means to facilitate the

nine miles from downtown Houston, the site of

acquisition of the voting shares o f Bank. A cco rd ­
ingly. the proposed acquisition of shares of the

of Houston ( “ First City B an k ” ) ($1.6 billion in

successor organization

deposits). The record indicates that there is exist­

is treated herein as the

proposed acquisition of the shares o f Bank.

A pplican t’s lead bank, First City National Bank

ing competition

between

Bank

and

First

City

Notice of the application, affording opportunity

Bank. M oreover, Applicant operates three other

for interested persons to submit comments and

banking subsidiaries in the southwestern Houston

view s, has been given in accordance with § 3 (b )

area,

o f the Act. The time for filing comments and views

A pplicant’s existing banking subsidiaries in the

each within

a six mile radius of

Bank.

has expired, and the Board has considered the

relevant market derive

application and all comments received in light of

deposits and $14.4 million in loans from B a n k ’s

about $15.3

million

in

the factors set forth in § 3 (c) of the Act (12 U .S .C .

service area. A ccordin gly, consummation of the

1842(c)).

proposed acquisition w ould adversely affect exist­

Applicant is the second largest banking organi­

ing competition within the relevant market and

zation and bank holding company in Texas and

would further solidify A pplican t’s position as the

controls 21 banks with aggregate deposits o f $2.6

leading banking organization within the market.

billion, representing approximately 7.4 per cent
of

the

total

deposits

in commercial

banks

in

T e x a s .1 Applicant also owns interests of between
5 and less than 25 per cent in eight other banks
($178 million in deposits). Acquisition of Bank
($19.3 million in deposits) w ould increase A p p li­
cant’s share of commercial bank deposits in Texas
by less than . 1 of one per cent, and w ould not
significantly increase the concentration of banking
resources in Texas.
Applicant is the largest banking organization
operating in the Houston market with 10 banking
subsidiaries controlling *21 per cent o f total market
deposits.2 Acquisition o f Bank, which holds ap­
proximately .2 of one per cent o f commercial bank
deposits in the relevant market,

w ould

further

enhance somewhat Applican t’s market position in
the Houston area. A pplican t’s market share and
that o f the second leading banking organization
in the Houston market (Texas Com m erce B anc­
shares, In c.) is in excess o f 37 per cent o f market
deposits, while the market share o f the third largest
banking organization in the market is less than half
that of Applicant.
In addition to the above-noted effects with re­
spect to A pplican t’s position within the overall
Houston market, acquisition o f Bank by Applicant
w ould eliminate existing competition and foreclose
the development o f significant potential competi­
tion in the relevant market. Bank is located in the

B an k ’s service area is one o f the fastest devel­
oping areas in Houston. D uring the decade o f the
1960’s, population o f the southwestern portion of
the Houston market increased nearly 63 per cent,
a rate o f growth one-and-a-half times greater than
that for the S M S A as a whole. In recognition of
the growth in the area and the prospects for its
continued development, Applicant previously en­
tered this area through the establishment o f two

de novo banks and the acquisition o f an existing
bank, H ighland V illa ge State Bank ($34.3 million
in deposits). The Board notes also that Applicant
has recently announced its intention to establish
an additional new bank in this area to be located
only 4.5 miles southwest o f Bank. A pproval of
the application w ould result in a further concen­
tration o f A pplican t’s resources within one o f the
major growth areas o f the Houston market, and
foreclose the possibility of increased competition
developing between Bank and A pp lican t’s subsid­
iaries located in the area. M oreover, it appears
likely that Applicant w ould, absent approval of
the subject acquisition, attempt to expand into this
area in the reasonably near future through de novo
entry, an alternative that w ould result in additional
competition developing with Bank.

Consum m a­

tion of the proposal w ould also rem ove Bank as
a “ foothold” acquisition for another banking or­
ganization not presently represented in the market.
On the basis o f these factors and others o f record,
the Board concludes that consummation o f the
proposed acquisition w ould foreclose the develop­

JA11 ban king data, unless o th erw is e in dicated, are as o f June
30, 1973, and reflect bank h old in g co m p a n y fo rm a tio n s and
acqu isition s a p p rove d through M a y 31, 1974.
2B y action o f this date, the B oard a p p roved A p p lic a n t’ s
a cqu isition o f an a d dition al H ouston banking su bsid iary, A lm e d a -G en o a Bank.




ment o f significant potential competition.
In its application, Applicant asserts that the
proposal constitutes only the restructuring o f an
existing corporate relationship. Applicant notes the
follow in g: Bank was organized under the direction

508

FEDERAL RESERVE BULLETIN □ JULY 1974

and supervision o f officers o f A pplican t’s lead
bank, First City Bank, in 1959; B a n k ’s first pres­
ident and first managing officers were officers of

be, and hereby is, denied.
B y order o f the B oard o f G overnors, effective
June 26, 1974.

A pplicant’s lead bank; and, three other officers
of A pplicant’s lead bank were on B an k ’s original
board o f directors. This relationship, it is claimed,
has continued up to the present time. The Board

Voting for this action: Vice Chairman Mitchell and Gover­
nors Brimmer, Bucher, Holland, and Wallich. Voting against
this action: Governor Sheehan. Absent and not voting: Chair­
man Burns.

notes that at the time o f B an k ’s organization A p ­
plicant did not directly ow n any o f B an k ’s stock

(S ign ed )

C h e s te r

B.

F e ld b e r g ,

S ecreta ry o f the B o a r d .

[s e a l]

and that Applicant now owns directly only 4.8 per
cent o f B an k ’s stock. A t the present time, First
City

Bank

has

five

representatives

on

D is s e n t in g

B an k ’s

State m e n t

G overnor

b y

Sh eeh an

nineteen-member board o f directors. Additionally,
officers and/or directors o f Applicant or its subsid­
iaries ow n

14.6 per cent o f B a n k ’s stock. This

represents a significant decline from the 24.5 per
cent interest in Bank held by com parable officers
and/or directors o f Bank in

1959, the time of

B a n k ’s organization. A majority o f B a n k ’s shares
is now held by individuals (rather than corporate
entities) w ho also have interests in, or some rela­
tionship with, Applicant. W h ile approval of the
subject application w ould result in a transfer of
these individual ownership interests in Bank to
Applicant, it is the B o a rd ’s view that such indi­
vidual holdings lack the permanence o f a corporate
holding and, on the facts herein, denial o f the
application w ould preserve the possibility o f ter­
mination or diffusion of these interests; accord­
ingly, the Board is o f the view that it is not an
unlikely prospect that common ownership may be
diminished or terminated and Bank may become
an independent competitor in the market.
The Board concludes, therefore, that competi­
tive considerations w eigh against approval o f the
acquisition o f Bank by Applicant and such con­
siderations require denial o f the application unless
the anticompetitive effects are clearly outweighed
by benefits to the public in meeting the conven­
ience and needs o f the communities to be served.
The financial and managerial resources and fu ­
ture prospects o f Applicant, its subsidiary bank,

I dissent from the m ajority’s denial o f the ac­
quisition by Applicant o f M eyerland Bank. I b e­
lieve that the record shows there has existed a close
relationship between M eyerland Bank and A p p li­
cant and that termination of that relationship is
not a likely eventuality.
There has been a long existing and close rela­
tionship between M eyerland Bank and Applicant.
This relationship is currently manifested, in part,
by common officer/director relationships: Five o f
the officers o f A pp lican t’s lead bank are directors
o f M eyerland Bank, and M eyerland B an k ’s chair­
man is an officer o f A pplican t’s lead bank. Fur­
thermore, officers o f Applicant and members o f
a law firm closely tied to Applicant ow n substantial
amounts o f voting shares o f M eyerland Bank. A s
Applicant has indicated, if these individual (but
related) interests are grouped with

Applican t’s

holdings in M eyerland Bank, the total w ould be
in excess o f 50 per cent o f the voting shares of
Bank. Inasmuch as there are no significant m inor­
ity blocks o f shares in M eyerland Bank outstand­
ing, it is clear Applicant has considerable influence
(if not actual control) over Bank. In my view , the
existence o f this relationship forecloses the possi­
bility that consummation o f the proposal w ould
have any significant adverse effects on competi­
tion.
A ccordingly, for the above reasons, I disagree
with the m ajority’s denial o f the application.

and Bank are regarded as generally satisfactory.
There is no evidence in the record to indicate that
the banking needs o f the relevant market are not
being met by the existing institutions. Although
considerations relating to the convenience

F IR S T C I T Y B A N C O R P O R A T I O N O F T E X A S ,
I N C ., H O U S T O N , T E X A S

and

needs o f the communities to be served are consist­

O rd er

A p p r o v in g

A c q u is itio n

o f

B an k

ent with approval, they do not, in the B o ard ’s

First City Bancorporation o f Texas, Inc., H o u s­

view , outweigh the anticompetitive effects inher­

ton, Texas, a bank holding company within the

ent in the proposal. It is the B o a rd ’s judgment

meaning o f the Bank H olding Com pany A ct, has

that, on the basis o f the entire record, consumma­

applied for the B o a rd ’s approval under § 3 (a )(3 )

tion of the proposed acquisition w ould not be in

o f the A ct (12 U .S .C .

the public interest and that the application should

of the voting shares o f the successor by merger




18 42 (a)(3 )) to acquire all

509

LAW DEPARTMENT

Texas

tors in the market and the restriction placed on

( “ B an k ” ). The bank into which Bank is to be

branching by State law . Furthermore, in view o f

merged has no significance except as a means to

B an k ’s small size and its market position, it does
not appear that A pplican t’s acquisition o f Bank

to

the

A lm eda-G en o a

Bank,

Houston,

facilitate the acquisition o f the voting shares of
Bank. A ccordingly, the proposed acquisition of

w ould result in barriers to entry into the vicinity

shares of the successor organization

o f Bank by other banking organizations. Although

is treated

herein as the proposed acquisition of the shares

Applicant has the resources and expertise to e x ­

o f Bank.

pand in this area o f the market de novo , the Board

Notice o f the application, affording opportunity

views the proposed acquisition as a “ foothold”

for interested persons to submit comments and

entry that is tantamount to de novo entry in view

view s, has been given in accordance with § 3 (b )

of the small size of Bank. A ccordingly, on the

o f the Act. The time for filing comments and views

basis

has expired, and the Board has considered the

consummation o f the proposal w ould not eliminate

o f the record,

the Board

concludes

that

application and all comments received in light of

a significant amount o f existing competition nor

the factors set forth in § 3(c) o f the Act (12 U .S .C .

adversely affect potential competition.
The financial and managerial resources and fu ­

1842(c)).
Applicant, the second largest banking organi­

ture prospects o f Applicant, its subsidiary banks

zation and bank holding company in Texas, con­

and Bank are generally satisfactory and consistent

trols 21 banks with aggregate deposits of $2.6

with approval of the application. W h ile there is

billion, representing approximately 7.4 per cent

no evidence in the record to indicate that the

in

banking needs o f the community are not presently

T e x a s .1 Applicant also owns interests o f between

being met, affiliation with Applicant w ould enable

of

the total

deposits

in commercial

banks

5 and less than 25 per cent in eight other banks

Bank to expand its commercial and real estate loan

(aggregate deposits of $178 m illion). Acquisition

activities. Therefore, convenience and needs con­

of Bank ($7.9 million in deposits) w ould increase

siderations are consistent with approval o f the

A pplican t’s share o f commercial bank deposits in

application. It is the B o a rd ’s judgment that the

Texas by less than one-tenth o f one per cent, and

proposed transaction is in the public interest and

w ould not significantly increase the concentration

should be approved.
O n the basis o f the record, the application is

o f banking resources in Texas.
Bank, which is located about 13 miles southeast

approved for the reasons summarized above. The

o f dow ntow n Houston, operates in the Houston

transaction shall not be made (a ) before the thir­

banking market (approximated by

the Houston

tieth calendar day fo llo w in g the effective date of

S M S A ). Bank is the 123rd largest o f 162 banks

this Order or (b ) later than three months after the

in the market and controls 0.1 per cent o f total

effective date o f this Order, unless such period

market deposits. Applicant is the largest banking

is extended for good cause by the B oard, or by

organization operating in the Houston market with

the Federal Reserve Bank of D allas pursuant to

10 banking subsidiaries controlling 21 per cent of

delegated authority.

total market deposits.2 Although Applicant and
Bank operate in the same market, consummation
o f the proposal w ould not result in the elimination
of significant existing competition.

A pplicant’s

nearest subsidiary bank, Gulfgate State Bank of
Houston ( “ G ulfgate B a n k ” ) is located 6.5 miles

B y order o f the Board o f Governors, effective
June 26, 1974.
Voting for this action: Vice Chairman Mitchell and Gover­
nors Sheehan, Bucher, and Wallich. Voting against this action:
Governors Brimmer, and Holland. Absent and not voting:
Chairman Burns.

from Bank and neither bank derives a significant
amount of business from the service area o f the

(Sign ed )

C h e s te r

B.

F e ld b e r g ,

Secretary o f the Board.

[s e a l]

other. The prospect o f competition developing in
the future between A pplican t’s subsidiaries and
Bank is lessened by the large number o f competi­

D is s e n t in g

Sta te m e n t

G overnor

o f

B r im m e r

I w ould deny the application o f First City B an ­
corporation of Texas, Inc., Houston, Texas, to
*A11 ban king data are as o f June 30, 1973, and reflect bank
h old in g co m p a n y fo rm a tio n s and a cqu isition s a p p rove d through
M a y 31, 1974.
2B y action o f this date, the B oard den ied a p p lica n t’ s a cq u i­
sition o f M e y e rla n d B an k, H ou ston , T ex a s.




acquire A lm eda-G en oa Bank, Houston, Texas. In
my opinion, the proposed acquisition w ould have
significant adverse effects on potential competition
that are not outweighed by benefits to the public.

510

FEDERAL RESERVE BULLETIN □ JULY 1974

In my view , Applicant is a likely entrant into

market by its lead bank and nine other banking

this area of the Houston market. A s the largest

subsidiaries.

banking organization in the market, Applicant has

w ould not be troubled by

the resources to enter this area de novo. Further­

several more small banks or form ing some more

Even

with

this

representation,

I

Applicant acquiring

more, Applicant had evidenced its interest in this

de novo banks scattered throughout the metro­

area by its application for a national bank charter

politan area o f Houston. H o w ever, I am concerned

to open a de novo bank in the vicinity o f Bank— an

that Applicant’s expansion

application which was subsequently withdrawn. I

concentrate on the m ajor traffic arteries in the

strategy appears

to

believe that if the instant application for acquisi­

southwestern and southeastern quadrants of the

tion o f Bank were denied, there is a strong proba­

city, the most rapidly-grow ing areas in the market.

bility that Applicant w ould renew its attempt to

A pproval o f further acquisitions by Applicant in

enter this area o f the market de novo.

these locations w ould result in Applicant strength­

A pproval o f the proposed acquisition w ould also

ening its already substantial position in these sub-

result in Applicant further increasing its repre­

markets and m ay foreclose the possibility o f other

sentation in this area o f Houston. Bank is situated

organizations entering such areas. A ccordin gly, on

on a freew ay in a rapidly-developing suburban area

the basis o f the facts o f this case, I w ould deny

in the southeastern section o f the Houston S M S A .
Applicant presently controls one o f the four banks
located along this freew ay and approval of this
application w ould

give

Applicant control of a

second bank located in the same area. In my
opinion, Applicant should not be permitted to
acquire this second bank— a potential source of
increased competition to Applicant in the future.
Instead, it should be encouraged to enter this area

de novo as originally planned.
A ccordingly, I conclude on the basis o f the
record that the proposed acquisition w ould have
significant adverse effects upon potential competi­
tion.

Since I find no benefits to the public

to

outweigh such adverse effects, I w ould deny the
application.
D is s e n t in g

State m e n t

G overnor

F IR S T F I N A N C I A L G R O U P O F
N E W H A M P S H IR E , IN C .,
M A N C H E S T E R , N E W H A M P S H IR E
O rder

D e n y in g

A c q u is it io n

of

B a n k

First Financial G roup o f N e w Hampshire, Inc.
(form erly

The

M anchester

Corporation),

M an­

chester, N e w Hampshire, a bank holding company
within the meaning o f the Bank H olding Com pany
A ct, has applied for the B o a rd ’s approval under
§ 3 (a )(3 ) o f the A ct (12 U .S .C .

18 4 2 (a)(3 )) to

acquire 80 per cent or more o f the voting shares
o f Nashua Trust Com pany, Nashua, N e w H am p ­
shire ( “ B an k ” ).
Notice o f the application, affording opportunity

o f

for interested persons to submit comments and

H o lla n d

view s, has been given in accordance with § 3 (b )

I w ould deny the application by First City B an ­

o f the Act. The time for filing comments and views

corporation o f Texas, In c ., to acquire another bank

has expired, and the B oard has considered the

in one o f the attractive submarket areas o f Houston

application and all comments received in light of

in which it already has several other offices. The

the factors set forth in § 3(c) o f the Act (12 U .S .C .

present application is suggestive, in my view , o f

1842(c)).

a tendency o f some large bank holding companies

Applicant, the second largest banking organi­

which control a significant percentage o f the de­

zation in the State, has one banking subsidiary,

posits in large metropolitan areas to expand their

The Manchester B ank, Manchester, N e w H am p ­

market position by

increasing the number and

shire ( “ Manchester B a n k ” ), the largest com m er­

concentration o f their offices in a selected few

cial bank in the State with deposits o f $137 m il­

submarkets o f those metropolitan areas. In the long

lion, representing 10.2 per cent o f the total depos­

run, I believe that this tendency, if permitted to

its in commercial

continue, w ould reduce the likelihood of increased

Bank, with deposits of $61.5 million, representing

competition occurring in those more

attractive

4.6 per cent o f total State commercial bank de­

submarkets and also decrease the likelihood o f

posits, is the fifth largest banking organization and

banks in

N ew

H am pshire.1

vigorous competitive expansion o f banking ser­
vices in the other submarkets in the areas.
Applicant is anchored in the Houston banking




Unless otherwise indicated, all banking data are as of June
30, 1973.

511

LAW DEPARTMENT

the fourth largest commercial bank in the State.

to have both the resources and expertise to enter

W h ile

largest

the N ashua S M S A de novo, and in view o f A p p li­

banking organization in N e w Hampshire would

cant’s proximity to the relevant market as w ell as
the attractiveness o f that market for de novo entry,

A pplican t’s rank

as

the

second

remain unchanged as a result o f the proposed
acquisition, the acquisition o f Bank w ould have

A pplicant may be regarded

an adverse effect on the level o f concentration of

entrant into the Nashua S M S A . A pproval o f the

as a

likely future

banking resources both in the State and in the

instant proposal w ould preclude such an alternative

respective markets2 in which Applicant and Bank

and thereby foreclose the addition o f an alternative

operate. The Board views these results as adverse

commercial banking competitor to the Nashua

considerations lending weight toward denial o f the

market and also eliminate the possibility o f de­

application.

concentration5 in the market. In addition, it should

Bank is the third largest o f six commercial banks

be noted that M anchester Bank could branch into

in the Nashua banking market, which is approxi­

certain portions o f the Nashua market which are

mated by the Nashua S M S A , 3 and controls 27 per

now open to branching by Bank. This potential

cent o f total deposits in that market. The two larger

competition w ould also be foreclosed by consum­

commercial banks in the market control respec­

mation o f A pplicant’s proposal. Thus, the B oard

tively, 31.5 and 29.8 per cent of total deposits

concludes

therein. Manchester Bank is the largest o f twelve

w ould have significant adverse effects on potential

commercial

competition in the Nashua market.

banks

in

the Manchester

banking

market, approximated by the Manchester S M S A , 4

that

consummation

of

the

proposal

Sim ilarly, Bank appears to have both the re­

holding almost 44 per cent o f total deposits o f

sources and expertise to form

commercial banks in the market. In terms o f total

company and thereafter to enter the Manchester

a bank holding

deposits, Manchester Bank is over three times as

S M S A through acquisition o f an existing bank

large as its next largest commercial bank competi­

located therein or by establishing a new bank.

tor. W h ile the Manchester S M S A and the Nashua

Bank, as the State’s largest independent bank,

S M S A are separate but contiguous banking mar­

appears to be one o f fe w remaining potential lead

kets in southern N e w Hampshire, eighteen miles

banks for a holding company in the State. The

separate the closest banking offices o f Manchester

towns o f D erry, G offstow n and Manchester have

Bank and Bank.

it

high population per commercial banking office

appears that little existing competition w ould be

ratios and w ould appear to be attractive areas for

eliminated by the proposed acquisition in view o f

a de novo bank. B a n k ’s entry into the Manchester

From

the facts o f record,

the fact that both Manchester Bank and Bank

market w ould have a salutary effect on competition

compete primarily in separate market areas.
The Board is concerned with the significant

by introducing a viable competitor to the market

adverse effects the proposed acquisition w ould

Manchester Bank, by far the largest commercial

with the resources to compete effectively with

have upon competition in the future in both the

banking competitor in that market. G iven these

M anchester and Nashua

B e­

factors, the Board concludes that consummation

tween 1960 and 1970, both market areas experi­

o f the proposed acquisition w ould have significant

banking markets.

enced rapid population growth; the Manchester

adverse effects on potential competition in the

S M S A increased 14.4 per cent while the Nashua

Manchester market.

S M S A (w hich abuts the northern border o f M a s ­
sachusetts and is only 38 miles from

Boston)

O n the basis o f the foregoing and the facts of
record, the Board concludes the competitive con­

increased approximately 55 per cent. In fact, the

siderations relating to this application are signifi­

N ashua S M S A is the fastest grow ing area in the

cantly adverse. Consummation o f the proposed

State in terms o f population. Applicant appears

transaction w ould (1 ) increase the concentration
of banking resources in the State and perpetuate
the levels o f banking concentration in both the

2T h e releva n t ba n k in g m arkets in clu de the o n ly tw o S M S A ’ s
in N e w H a m p sh ire; w h ile o n ly 16 o f the 79 co m m e rc ia l banks
in the State opera te in both ban kin g m arkets, those 16 banks
h old o v e r 40 per cent o f the S ta te ’ s total co m m e rc ia l bank
dep osits.
3T h e Nashua S M S A inclu des N ashu a and the tow n s o f
H u dson, M e r rim a c k , A m h ers t, and M ilfo r d .
4T h e M a n ch ester S M S A in clu des the tow n s o f M a n ch ester,
B e d fo rd , G o ffs to w n , H o o k s ett, P em b ro k e, A lle n s to w n , L o n ­
d o n d erry, and D erry.




Manchester and N ashua markets; (2 )

eliminate

some slight existing competition between A p p li­
cant and Bank; (3 ) foreclose significant potential

5T h e three largest co m m e rc ia l banks in the N ashu a m arket
co n trol 88.3 p er cen t o f the total dep osits therein.

512

FEDERAL RESERVE BULLETIN □ JULY 1974

competition in both the Manchester and Nashua

within the meaning o f the Bank H olding Com pany

banking markets; and (4 ) remove Bank as a p o ­

Act, has applied for the B o ard ’s approval, under

tential Statewide competitor as a lead bank in a

section 4 (c )(8 ) o f the A ct and § 2 2 5 .4 (b )(2 ) o f

newly formed holding company. A ccordingly, the

the B o ard ’s Regulation Y , to acquire indirectly all

Board

o f the voting shares of H arold Loan and Finance

views the competitive considerations as

requiring denial o f the application unless these

C orp.,

anticompetitive effects are outweighed by consid­

through its subsidiary, General Finance Service

erations relating to benefits to the public in meeting

C o r p o r a t io n ,

the convenience and needs of the communities to

( “ G F S C ” ). Com pany engages in the activities of

be served.

a consumer finance organization and acts as agent

Braddock,

Pennsylvania

H u n t in g d o n ,

( “ C om p an y ” ),
P e n n s y lv a n ia

The financial condition of Applicant and M a n ­

in the sale o f credit life and credit accident and

chester Bank is satisfactory and the financial con­

health insurance directly related to extensions of

dition o f Bank

satis­

credit by its subsidiaries, and also multi-peril in­

Applicant,

surance written to protect collateral on such loans

Manchester Bank and Bank are satisfactory and

during the period o f credit extension. Such activi­

the future prospects for all are favorable. Applicant

ties have been determined by the Board to be

has indicated that it w ould assist Bank in expand­

closely related to banking or managing or control­

ing its mortgage lending and municipal financing

ling banks (12 C F R 2 2 5 .4 (a)(1 ) and (9 )).

factory.

is regarded

M anagerial

as generally

resources

for

services and Bank has plans to assist Applicant

Notice o f the application, affording opportunity

in providing trust and credit card services at M a n ­

for interested persons to submit comments and

chester Bank. These services, however, are pres­

views on the public interest factors, has been duly

ently available in the respective markets and there

published (39 Federal Register 11223). The time

is no evidence that the banking needs o f the areas

for filing comments and views has expired, and

are not being met. M oreover, the Board does not

none has been timely received. The B oard has

regard the addition o f such services as outweighing

considered the application in light o f the public

the significant adverse effects flowing from the

interest factors set forth in § 4 (c )(8 ) of the A ct

proposal, as required by the Act.

(12 U .S .C . 18 43 (c)(8 )).

Accordingly, on the basis of the record, the

Applicant, the fourth largest banking organi­

Board finds that the anticompetitive aspects o f the

zation in V irginia, controls 14 banks with aggre­

proposed acquisition are not outweighed by con­

gate deposits o f $1.0 billion, representing about

siderations relating to the convenience and needs

9.0 per cent o f the total deposits in commercial

o f the communities to be served. It is the B o ard ’s

banks in the State.1 A pp lican t’s nonbanking sub­

judgment

that

consummation

of

the

proposed

sidiaries include a factoring company, a leasing

transaction w ould not be in the public interest and

corporation, a consumer finance corporation,

that the application should be,

company engaged in the business o f making loans

and is hereby,

a

to individuals secured primarily by second mort­

denied.
B y order o f the Board o f Governors, effective

gages on real estate,

and a mortgage banking

June 21, 1974.

company.

Voting for this action: Chairman Burns and Governors
Brimmer, Sheehan, Bucher, Holland, and Wallich. Absent and
not voting: Governor Mitchell.

and total loans outstanding o f less than $1 million

(Signed )

C h e s te r

B.

F e ld b e r g ,

Secretary o f the B oa rd .

[s e a l]

Com pany, with total assets of about $760,000
(as o f October 31, 1973), was incorporated in 1955
for the purpose of conducting a small loan busi­
ness. In 1963, C om pany organized a subsidiary,
H arold Consum er Discount Com pany ( “ Harold
C om pany” ), to conduct a licensed consumer dis­

ORDERS UNDER SECTION 4 OF
BANK HOLDING COMPANY ACT

count lending business and, since June o f 1973,
it appears that Com pany has been primarily en­

B A N K O F V IR G IN IA C O M P A N Y ,

gaged

in

consumer

discount

lending

through

Harold Com pany. Com pany also acts as agent in

R IC H M O N D , V IR G IN IA

the sale of insurance directly related to its lending
O rder
H aro ld

A p p r o v in g
L o an

a n d

A c q u is it io n
F in a n c e

o f

Bank o f V irginia Com pany, Richmond, V irginia ( “ A pplicant” ), a bank holding company




activities.

C o rp.

'B a n k in g data are as o f June 30,
noted.

1973, unless o th erw is e

513

LAW DEPARTMENT

Com pany maintains its sole office in Braddock,
relevant market is the Pittsburgh S M S A

is hereby approved. The determination is subject

The

to the conditions set forth in § 225.4(c) o f R e g u ­

which

lation Y and to the B o a rd ’s authority to require

Pennsylvania, near the city of Pittsburgh.

includes parts of five counties. H o w ever, C o m ­

such modification or termination o f the activities

pany’s considerably smaller primary service area

o f a holding company or any o f its subsidiaries

encompasses an area within a ten-mile radius of

as the Board finds necessary to assure compliance
with the provisions and purposes o f the A ct and

Braddock.
A pplicant’s subsidiary,

G F S C , operates con­

sumer discount lending offices in five locations in
the central and western part o f Pennsylvania but
has no offices and does not compete in the Pitts­
burgh area. The closest office of G F S C to C o m ­
pany is located 70 miles from Braddock,
Applicant’s other subsidiaries engaged

and

in con­

sumer finance activities operate outside the State
of Pennsylvania. Consequently, there is no signif­
icant existing competition between the consumer
finance offices o f Applicant and Com pany. The
record indicates that 22 companies engaged in
consumer finance activities operate 61 offices lo ­
cated within C om p an y ’s service area. Further, it

the

B o a r d ’ s re g u la tio n s

and

o rd e rs

issu e d

thereunder, or to prevent evasion thereof.
The transaction shall be made not later than
three months after the effective date o f this Order,
unless such period is extended for good cause by
the B oard, or by the Federal Reserve Bank of
Richmond pursuant to delegated authority.
B y order o f the Board o f Governors, effective
June 5, 1974.
Voting for this action: Governors Sheehan, Bucher, Holland,
and Wallich. Voting against this action: Governor Brimmer.
Absent and not voting: Chairman Burns and Governor
Mitchell.

(S ign ed )

C h e s te r

B.

F e ld b e r g ,

Secretary o f the Board.

[s e a l]

appears that C om pany controls less than 5 per cent
of the consumer finance business in the relevant

D is s e n t in g

market. Therefore, although Applicant could enter

State m e n t

G overnor

o f

B r im m e r

the area served by Com pany on a de novo basis,
I w ould deny the application by Bank o f V ir ­

it appears that no significant adverse effect on
future competition w ould result from the proposal

ginia Com pany to acquire Harold Loan and F i­

in view o f the large number o f competitors in the

nance Corp. A n employment agreement that is part

market and the relatively small size o f Com pany.

of the proposal contains a restrictive covenant

O n this basis, the Board concludes that A pplican t’s

which w ould have an adverse effect on competition

acquisition o f Com pany w ould not have significant

within the relevant area.

adverse effects on existing or future competition

rangement is not outweighed by any facts in the

nor raise barriers to entry by other organizations.
In considering this application, the Board has

The effect o f this ar­

record demonstrating that the public interest w ould
be served.

examined a covenant not to compete contained in
an employment contract executed between G F S C

The employment agreement precludes M r. Sovich, General M anager o f Com pany (during the

and the general manager o f Com pany. The Board

time he is receiving payments from G F S C and for

finds the provisions o f this covenant are reasonable

a period o f one year thereafter) from becom ing

in duration, scope, and geographic area and are

affiliated— within a radius o f 15 miles o f C o m ­

consistent with the public interest.

p any’s office in Braddock,

It appears that consummation o f this proposed

Pennsylvania— with

any small loan, consumer finance, or consumer

transaction w ould not result in any undue concen­

lending operations, other than those o f G F S C . The

tration o f resources, conflicts of interests, unsound

effect o f such action w ould

banking practices, or any other adverse effects on

consumer finance institutions within the designated

the public interest. Applicant proposes to provide

area the expertise that could be provided by M r.

be to deny other

C om pany increased access to capital, offer data

Sovich’s services. I find all such restrictions on

processing facilities to Com pany, and make avail­

employment to be an impediment to competition.

able experienced personnel and assistance in the

Reference is made to similar view s expressed in

areas o f financial planning, sales, and marketing.

my Dissenting Statements in the applications o f

Based upon the foregoing and other consid­

First A labam a Bancshares, Inc., to acquire Citi­

erations reflected in the record, the Board has

zens Bank o f Guntersville (59 Federal Reserve
757); Southern Bancorporation to ac­

determined that the balance o f the public interest

B u lle tin

factors the Board is required to consider under §

quire Piedmont Premium

Services

(59

Federal

4 (c )(8 ) is favorable. A ccordingly, the application

Reserve

United

First

Florida




B u lle tin

766);

514

FEDERAL RESERVE BULLETIN □ JULY 1974

Banks, Inc.,

to acquire D e

Land

State Bank,

approved by the B oard on A pril 4,

1974; and

United First Florida Banks, Inc., to acquire First
National Bank o f Merritt Island, approved by the
Board on M a y 20, 1974.

loans; financing consumer loans, motor vehicles
and insurance premiums; and reinsuring credit life,
credit accident and health insurance.
Acceptance (total net receivables o f approxi­
mately $494,0002) operates one office in Atlanta,

There is no documentation in this record sub­

G eorgia and engages in business in G eorgia, K en ­

stantiating the finding that public benefits emanat­

tucky and Tennessee. It appears that, in terms of

ing from the employment contract w ould outweigh

receivables, Acceptance is the 17th largest o f 52

any adverse effects o f the restrictive covenant on

licensed insurance premium financing companies

competition. Therefore, I w ould deny the applica­

in G eorgia; the 33rd largest o f 35 such companies

tion.

in Kentucky; and the fourth largest o f 30 such
companies doing business in Tennessee. Insurance
S O U T H C A R O L IN A N A T IO N A L

(total net receivables o f approximately $332,000)

C O R P O R A T IO N ,

operates one office in M organtow n, North Carolina

C O L U M B IA , S O U T H C A R O L IN A
O rder

A p p r o v in g

P r e m iu m

A c q u is it io n

C o m pan y

a n d

D is c o u n t

o f

and derives most o f its business from North C aro ­

A cceptance

Insu rance

lina where it appears to be the sixth largest o f
133 companies

P r e m iu m

engaged

in insurance premium

financing. In addition, Insurance derives a small

C o m pan y

amount o f its business from South Carolina where
South Carolina National Corporation, C olum ­
bia, South Carolina,

53 such companies operate.

a bank holding company

Because o f State licensing requirements3 and the

within the meaning o f the Bank H olding Com pany

nature of insurance premium financing, which in­

Act, has applied for the B o a rd ’s approval, under

volves doing business with agents in many parts

section 4 (c )(8 ) o f the A ct and § 2 2 5 .4 (b )(2 ) of

o f a State, the relevant geographic markets for

the B o a rd ’s Regulation Y , to acquire indirectly all

analysis of the competitive effects o f the proposed

of

the

voting

shares

of

Acceptance

Premium

Com pany, Atlanta, G eorgia ( “ Acceptance” ), and

acquisitions is

approximated

by

each State

in

which such a company is doing business. One o f

Insurance Premium Discount C om pany, M o rgan ­

Applicant’s

town, North Carolina ( “ Insurance” ), companies

Com pany,

that engage in the activity o f making extensions

premium financing in Virginia. H ow ever, neither

o f credit to individuals and corporations to finance

Premium, Acceptance nor Insurance derive any

subsidiaries,
( “ Prem ium ” )

Premium
engages

Acceptance
in

insurance

the payment of casualty, liability and other insur­

significant business from the States in which any

ance premiums. Such activity has been determined

of the other companies operate. On this basis, and

by the Board to be closely related to banking (12

other facts o f record, the B oard concludes that the

C F R 2 2 5 .4 (a )(1 )).

proposed acquisitions w ould not have adverse e f­

Notice o f the application, affording opportunity

fects on existing competition. Furthermore, it does

for interested persons to submit comments and

not appear that A pplican t’s acquisition of A ccep ­

views on the public interest factors, has been duly

tance or Insurance w ould foreclose the develop­

published (39 Federal Register 12930 and 13603).

ment o f significant potential competition within the

The time for filing comments and view s has ex­

relevant markets in view of the size o f the com pa­

pired, and the Board has considered the application

nies to be acquired, the numerous other potential

and all comments received in the light o f the public

entrants, the relatively large number o f competi­

interest factors set forth in section 4 (c )(8 ) o f the

tors already operating in each market and the

A ct (12 U .S .C . 1843(c)).

absence of concentration o f the insurance premium

Applicant, the largest banking organization in

financing business in each market. N o r is there

South Carolina, controls one bank with total de­

any evidence to indicate that the acquisition o f

posits o f $703 million, representing approximately

Acceptance and Insurance by

21 per cent o f the total deposits in commercial

result in any undue concentration o f resources,

Applicant w ould

banks in the State.1 Applicant also controls a
number o f nonbanking subsidiaries engaged

in

making m ortgage and second mortgage real estate

1All banking data are as of June 30, 1973, and reflect holding
company acquisitions and formations approved through May
31, 1974.




2 D ata fo r re c e iv a b le s fo r A c c e p ta n c e and Insurance are as
o f D ec e m b e r 31, 1973.
3 G e o r g ia , K e n tu c k y , N o rth C a rolin a , South C a rolin a and
V irg in ia requ ire that an insurance p rem iu m fin ancin g co m p a n y
obtain a licen se b e fo r e transacting business in such States.

515

LAW DEPARTMENT

unfair competition, conflicts of interests or un­

ternative source o f insurance premium financing

sound banking practices. It is expected that con­

in any geographic area in which Acceptance and

summation o f the proposal w ill increase the finan­
cial resources available to Acceptance and Insur­

Insurance are presently doing business for a period

ance,

enabling them
which

to expand

should

increase

their loan

o f three years from the date o f consummation of

thereby

the acquisition. The majority has presented no

portfolios

evidence to show that such covenants are in the

and low er their costs o f funds,
their competitive

effec­

public interest.
For reasons stated more fully in my dissents to

tiveness.
In consideration o f this application, the Board

the application o f Orbanco, Inc., to acquire Far

has examined the covenants not to compete which

W est

were executed in connection with each o f the

B u lle tin

Security

Com pany

(59

Federal

Reserve

proposed acquisitions. The Board finds that the

o f C B T Corporation to acquire General Discount

provisions of these covenants are reasonable in

Corporation (59 Federal Reserve

duration, scope and geographic area and are con­

(19 7 3 )), I am convinced that such covenants are

368-369 (1 9 7 3 )), and the application
B u lle t in

471

inherently anticompetitive and should not receive

sistent with the public interest.
Based on the foregoing and other considerations
reflected in the record, the Board has determined

the sanction of the Board. For these reasons, I
w ould deny these applications.

that the balance o f the public interest factors the
STA TE STREET B O S T O N

Board is required to consider under section 4 (c )(8 )
the applications are

F IN A N C IA L C O R P O R A T IO N ,

hereby approved. This determination is subject to

BOSTON, M ASSACHUSETTS

is favorable.

A ccordingly,

the conditions set forth in section 225.4(c) o f
Regulation

Y

and to the B o a rd ’s authority to

require such modification or termination o f the

O rd er

A p p r o v in g

B o s to n

D

F in a n c ia l

e

N

o v o

D a ta

J o in t

V e n tu re ,

S e r v ic e s ,

In c .

activities o f a holding company or any o f its

State Street Boston Financial Corporation, B o s ­

subsidiaries as the Board finds necessary to assure

ton, Massachusetts ( “ State Street” ), a bank hold­

compliance with the provisions and purposes o f

ing company within the meaning o f the Bank

the A ct and the B o a rd ’s regulations and orders

H olding Com pany Act, has applied for the B o a rd ’s

issued thereunder, or to prevent evasion thereof.

approval, under section 4 (c )(8 ) o f the A ct and §

The transaction shall be made not later than

2 2 5 .4 (b )(1 ) o f the B o a rd ’s Regulation Y , to en­

three months after the effective date o f this Order,

gage in a joint venture with D ata-Sys-Tance, Inc.,

unless such period is extended for good cause by

Kansas City, M issouri ( “ D S T ” ). The joint ven­

the B oard or by the Federal Reserve

ture w ould be carried out through Boston Financial

Bank o f

Richmond.

Data

B y order o f the Board o f Governors, effective
June 24, 1974.
Voting for this action: Governors Sheehan, Bucher, Holland,
and Wallich. Voting against this action: Governor Brimmer.
Absent and not voting: Chaiiman Burns and Governor
Mitchell.

(Sign ed )
[s e a l]

B.

Services,

Inc.,

Boston,

Massachusetts

( “ C om p an y ” ) , 1 which w ould engage de novo in
data processing and recordkeeping services asso­
ciated with shareholder accounting for investment
companies. The activity in which C om pany will
engage has been determined by the Board to be
closely related to banking (12 C F R 2 2 5 .4 (a )(8 )(i)).

F e ld b e r g ,

Notice of the application, affording opportunity

Secretary o f the Board.

for interested persons to submit comments and

C h e s te r

views on the public interest factors, has been duly
D is s e n t in g

State m e n t

G overnor

of

B r im m e r

I w ould deny the applications by South Carolina
National Corporation to acquire Acceptance Pre­
mium Com pany and Insurance Premium Discount
Com pany. M y decision is based upon the existence
o f covenants not to compete which were executed

published (39 Federal Register 5533). The time
for filing comments and view s has expired, and
none has been timely received.
State Street controls three banks with aggregate
deposits o f about $1.2 billion, representing 9.2 per
cent o f the total deposits in commercial banks in
Massachusetts, and is the fourth largest commer-

between Applicant and the principal shareholders
of Acceptance and Insurance. The effect o f these
covenants is to preclude the possibility o f the
selling corporation undertaking to provide an al­




1
A p p lic a n t re c e iv e d perm ission fr o m the R e s e rv e Bank o f
B oston to establish d e n o v o B o sto n Fin a n cial D ata S erv ic e s ,
In c ., pursuant to section 4 ( c ) ( 8 ) o f the A c t and § 2 2 5 .4 (b )(1 )
o f R eg u la tio n Y as o f O c to b e r 1, 1973.

516

cial

FEDERAL RESERVE BULLETIN □ JULY 1974

State.2 State

while D S T does slightly over 1 per cent. Further­

Street’s lead bank, State Street Bank and Trust

banking

organization

in the

more, B a n k ’s shareholder accounting business has

Com pany, Boston, Massachusetts ( “ B an k ” ),

declined sharply in the last several years, and State

is

the third largest commercial bank in M assachu­

Street states that it w ould cease its operations in

setts. In connection with its responsibilities

as

this line o f activity unless the proposed joint ven­

plan custodian and

ture is approved. O n this basis, it appears that

trustee for mutual funds, Bank presently performs

Bank is not presently, and is not likely, absent

transfer agent,

plan agent,

shareholder accounting functions for 19 m anage­

the proposed joint venture, to become an effective

ment companies representing 34 mutual funds with

competitor for mutual fund shareholder accounting

311.000 shareholder accounts.
DST,
Kansas

an
City

80

per

services. The Board concludes that consummation

cent-owned

subsidiary

o f the proposed transaction w ould not eliminate

Kansas

significant existing competition between the co­

has been providing shareholder

venturers, nor w ould it have an adverse effect on

Southern Industries,

City, M issouri,

of

Inc.,

accounting services since 1969 and, in addition,

competition between them in the future.

presently acts as transfer agent, plan agent, trustee

The Board finds that the proposed joint venture

and/or servicing agent for three large mutual fund

would result in public benefits. The formation o f

complexes with a total of 779,000 shareholder

the joint venture w ill enable Bank to continue to

accounts. D S T also competes for shareholder ac­

provide shareholder accounting services to its cus­

counting business through the sale and licensing

tomers because it w ill reduce the cost o f these

o f its data processing system; 41 mutual funds with

operations. In addition, the joint venture w ill in­

1.177.000 shareholder accounts are processed on

crease the efficiency o f the services which are now

the D S T system by owners or licensees of the

offered by Bank.

system other than D S T .

There is no evidence in the record in this case

Com pany w ill perform clerical, computer pro­

indicating that consummation o f the present p ro ­

cessing and recordkeeping services associated with

posal to engage in a joint venture w ould result

shareholder accounting for mutual funds. These

in undue concentration o f resources, unfair com ­

services w ill be performed initially for only one

petition, conflicts o f interests, unsound banking

customer, Bank, on a contract basis. C om p any’s

practices, or other adverse effects.

activities w ill include establishing shareholder ac­

Based upon the foregoing and other consid­

counts, processing and recording share transfers,

erations reflected in the record, the Board has

recording shares purchased by direct payment or

determined that the balance o f the public interest

by investment, calculating and determining pay­

factors the Board is required to consider under

ment of distributions on shareholdings and other

section 4 (c )(8 ) is favorable. Accordingly, the ap­

recordings o f various transactions in shareholders’

plication is hereby approved. This determination

accounts. B an k ’s operations facility, State Street

is subject to the conditions set forth in § 225.4(c)

South Corporation, w ill house the clerical and

of Regulation Y and to the B o ard ’s authority to

correspondence

require such modification or termination o f the

clearing. A ll recordkeeping information w ill be

administrative

operations

and

activities o f a holding company or any o f its

transmitted to computer facilities provided by D S T

subsidiaries as the Board finds necessary to assure

in Kansas City, M issouri. In essence, by forming

compliance with the provisions and purposes o f

this joint venture, State Street w ill transfer its

the Act and the B o a rd ’s regulations and orders

mutual fund shareholders’ recordkeeping opera­

issued thereunder, or to prevent evasion thereof.

tions from B an k ’s computers in Boston to D S T ’s
computers in Kansas City.
W h ile both Bank and D S T offer mutual fund

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

shareholder accounting services, consummation of

the Board or by the Federal Reserve

the proposed joint venture w ould not eliminate any

Boston.

significant existing competition. A t present, Bank

Bank o f

B y order o f the Board o f Governors, effective

appears to do less than 1 per cent o f the mutual

June 20, 1974.

fund shareholder accounting business nationwide,

Voting for this action: Chairman Burns and Governors
Sheehan, Bucher, Holland, and Wallich. Voting against this
action: Governor Brimmer. Absent and not voting: Governor
Mitchell.

2Banking data are as of June 30, 1973, adjusted to reflect
bank holding company formations and acquisitions through
February 28, 1974.




(Signed) C hester B. F eld b erg ,
[ seal ]

Secretary of the Board.

517

LAW DEPARTMENT

D is s e n t in g

State m e n t

G overnor

the holding com pany’s lending subsidiaries might

of

favor its co-venturer and discriminate against the

B r im m e r

I w ould deny the application by State Street
Boston Financial Corporation to engage

in the

proposed activity through a de novo joint venture
with Data-Sys-Tance, Inc. Unlike the majority, I
believe that consummation of the proposed trans­
action w ould have adverse effects on competition
which are not outweighed by benefits to the public.
In addition, I do not believe the Board has given
due weight to possible abuses which may arise
from the legal structure which w ill form ally tie
together a bank holding company and a nonbank­
ing concern.
The majority concludes that the proposed joint
venture w ould not have a significant adverse effect
on existing or future competition between State
Street and Data-Sys-Tance. H o w ever, an arrange­
ment whereby Applicant w ill provide shareholder
accounting services to customers of its subsidiary
bank through the computer facilities o f an existing

co-venturer’s rivals and other applicants for credit.
This potential for abuse is alw ays present and is
more acute in a period o f monetary restraint when
the holding company finds it necessary to ration
credit.
Finally, I am greatly disturbed by the m ingling
of banking and commerce which w ill result from
a bank holding company and a company engaged
in both commerce and industry form ing a joint
venture. The legislative history surrounding the
enactment of the Bank

H olding Com pany

Act

makes clear that the basic thrust o f the A ct w as
to prevent the m ingling o f banking and commerce.
In my opinion, joint ventures such as the one
proposed in the present application are in direct
contravention o f the spirit o f the Act and, there­
fore, should not be sanctioned by the Board.
For these reasons, I dissent from the m ajority’s
approval o f the application.

competitor, in my opinion, w ill have an adverse
effect upon both present and future competition

B A N K A M E R IC A C O R P O R A T IO N ,

for shareholder accounting services between such

S A N F R A N C IS C O , C A L IF O R N IA

subsidiary bank and D ata-Sys-Tance. The majority
concludes that— since the shareholder accounting
business o f A pplican t’s subsidiary has recently

O rder

D e n y in g

I n t e r n a t io n a l

Investm ent

S .A .,

in

A llstate

Z u r ic h , S w it z e r l a n d

likely to

BankAm erica Corporation, San Francisco, C a l­

becom e an effective competitor for these services

ifornia ( “ Applicant” ), has applied for the B o a rd ’s

declined— the subsidiary bank is not

in the future and, therefore, any resulting elim ina­

consent under § 4 (c )(1 3 ) o f the Bank H olding

tion o f competition w ould not be significant. I

Com pany Act (12 U .S .C . 1843(c)(13) ) to acquire,

disagree. That the subsidiary w ould abandon its

directly or indirectly through a de novo company

present customers by ceasing its shareholder ac­

to be formed under the law s o f Great Britain, The

counting services is purely conjectural. Applicant

Netherlands, or Luxem bourg, 50 per cent o f the

could continue to offer shareholder accounting

voting

services by contract with either Data-Sys-Tance

Zurich, Switzerland ( “ A I S A ” ).

or some other computer firm. Such an arrangement

shares

of

Allstate

International

S . A .,

Applicant, with total consolidated assets o f ap­

w ould not have the adverse effects o f the proposed

proximately

joint venture since a competitive alternative w ould

company controlling the largest commercial bank

$49.4

b illio n ,1 is

a bank

holding

not be eliminated. A ccordin gly, I do not believe

in the w orld, Bank o f A m erica N T & S A ,

the proposed joint venture structure w ould result

Francisco, California, which has w orldw ide bank­

San

in benefits to the public which could not otherwise

ing operations with branches and banking and

be derived through some other arrangement. In the

financial subsidiaries located in countries through­

absence o f such benefits outweighing the adverse

out the world.

effects on existing and future competition between

indirect investment in A I S A , proposes to engage

the co-venturers,

I believe the statute requires

denial o f the proposal.

Applicant, through its direct or

in the activities o f underwriting, reinsuring, bro­
kerage, selling and servicing personal and com ­

In addition, I am concerned that the Board has

mercial lines o f individual and group life, health,

not given due weight to potential problems which

property and casualty insurance in European and

are likely to occur as a result o f the formal legal

other foreign countries. It is proposed that A I S A

structure which w ill tie together a bank holding

w ill be jointly-owned by Applicant and Allstate

company and nonbanking firm. For exam ple, in
order to promote harmony between the holding
company and its co-venturer in the joint venture,




1A11 financial data for Applicant are as of December 31,
1973.

FEDERAL RESERVE BULLETIN □ JULY 1974

518

Insurance Com pany, Northbrook. Illinois ( “ A l l ­

by A I S A will be integrated with Applicant's inter­

state” ),

Sears,

national or foreign banking activities, making it

Roebuck & Com pany, Chicago, Illinois, the larg­

a stronger competitor abroad and hence directly

est retailer of general merchandise in the United

benefiting the U .S . public.

a

w holly-ow ned

subsidiary

of

States. Allstate is one o f the largest U .S . insurance

In general, the Board believes that in conformity

companies with insurance premiums of approxi­

with the purposes o f § 4 (c )(1 3 ) of the Bank H o ld ­

mately $2.3 billion in 1973, and with total con­

ing Com pany Act and the Edge Act, U .S . banking

solidated assets of approximately $4 billion as of

organizations should have greater freedom in their

Decem ber 31, 1973. A I S A is at present a wholly

nonbanking activities abroad than is allowed d o­

owned subsidiary of Allstate with investments in

mestically, especially in cases where such activi

foreign insurance subsidiaries located in Sw itzer­

ties are necesary in order to remain competitive

land, Germ any, and M exico.

in international or foreign banking. H ow ever, the

Section 4 (c )( 13) of the Act provides that the

Board also must consider the impact which such

prohibitions o f § 4 o f the Act shall not apply to

nonbanking activities may have on the financial

the shares of,

or activities conducted by,

any

strength and managerial resources of the parent

company which does no business in the United

U .S , banking organization and any possible spill­

States except as an incident to its international or

over effects such foreign activities may have on

foreign business, if the Board by regulation or

the separation o f banking and commerce in the

order determines that, under the circumstances and

United States.

subject to the conditions set forth in the regulation

General

insurance

underwriting

involves

the

or order, the exemption w ould not be substantially

management of risks qualitatively different from

at variance with the purposes of the Act and would

those encountered in ordinary banking and familiar
to bank management. It is an activity which re­

be in the public interest.
In § 2 2 5 .4 (f)(1 ) of Regulation Y , the Board has

quires a large amount o f capital and specialized

determined that a bank holding company may.

managerial resources. A s such, permitting U .S .

with the B o ard ’s consent, ow n or control voting

banking organizations to enter such a major non­

shares o f any company in which a company o r­

banking activity abroad could divert their capital

ganized under § 25 (a) of the Federal Reserve Act

and managerial resources aw ay from their dom es­

(an Edge corporation) may invest. E dge corpora­

tic banking affiliates. Such a potentially adverse

tions are organized for the purpose o f engaging

consequence w ould clearly not be consistent with

in international or foreign banking or other inter­

the purposes o f the Bank H olding Com pany Act.

national or foreign financial operations. In keeping
with this statutory purpose, it has been Board

carefully considered the impact o f U .S . banking

policy that it is inappropriate for an E dge corpora­

organizations engaging in insurance underwriting

tion to acquire a significant ownership interest in

abroad on the purpose o f the Bank H olding C o m ­

a foreign company that is not engaged in interna­

pany Act of maintaining the separation of banking

tional or foreign banking or other international or

from commerce

foreign financial operations.2 General

growth o f international trade is bringing foreign

insurance

In deciding this application,

the Board

within the United States.

also

The

underwriting has not been authorized by the Board

and domestic

as within the scope o f financial operations to be

services closer together. A s this trend continues,

conducted by foreign companies in which an Edge

the Jine between banking and commerce in the

markets

for goods

and

financial

corporation proposes to acquire a significant o w n ­

U .S . could be blurred as foreign nonbanking ac­

ership interest.

tivities are progressively intertwined with domestic

A m on g Applicant’s arguments for approval are

operations. In the case of casualty insurance, in

that general insurance underwriting is usual in

particular, exposure to overlap appears especially

connection with the business of banking in Europe

great because o f the transnational nature o f that

and that the insurance activities to be conducted

business. Thus, the Board concluded that permit­

2In gen era l, the B oa rd con siders a significan t o w n ersh ip
interest to be any in vestm en t represen tin g m o re than 25 per
cent o f the fo re ig n c o m p a n y ’ s outstan ding v o tin g shares. In

eral insurance underwriting business abroad could

ting U .S . banking organizations to enter the gen ­

the B o a rd ’ s ju d gm en t, o n ce the 25 per cent lin e is passed,
the E d g e corp o ra tio n usually ceases to be a m ere p a ssive
in vesto r and takes an a c tiv e op era tin g interest in the co m p a n y.
T h e B oa rd, h o w e v e r, m akes this particular ju dgm en t on the
facts o f each case.




have potentially adverse effects on the long-stand­
ing Congressional policy in the Bank

H olding

Com pany Act o f keeping these activities separated
domestically.
In considering the above potentially adverse

LAW DEPARTMENT

519

effects against the alleged public benefits of ap­

erations reflected in the record, the B oard con­

proving the activity, the Board noted that some

cludes that the proposed

foreign banks in Europe do engage in insurance

w ould not be consistent with the purposes o f the
Bank H olding Com pany Act or in the public

underwriting.

H ow ever,

the record

shows

that

investment

in A I S A

most foreign bank insurance relationships are with

interest within the meaning o f § 4 (c )(1 3 ) o f the

brokerage rather than underwriting companies, and

Act, and hence the application is denied.

many of the affiliations with underwriters involve

B y order o f the Board o f Governors, effective

a minority or even nominal stock interest. Thus,

June 19, 1974.

on the basis of the record o f this application, the

Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Sheehan, Bucher, Holland, and Wallich.

Board concluded that Applicant has failed to prove
its assertion that its banking business would be
competitively injured by its inability to engage in
the general

insurance underwriting business

(Sign ed )

C h e s te r

B.

F e ld b e r g ,

Secretary o f the Board.

[s e a l]

in

Europe. In the B o a rd ’s judgment, U .S . banking
organizations through insurance brokerage activi­

C o n c u r r in g
G o vern o rs

S ta te m e n t

S h eeh an

an d

o f

W a llic h

ties already permitted them in European and other

W e have joined our colleagues in voting to deny

foreign countries are able to serve adequately and

the application o f B ankA m erica Corporation to

competitively their needs and those of their foreign

acquire Allstate International S .A .

banking customers.

agree that A pplican t’s capital position is somewhat

The B oard was equally concerned with the fact
that this application proposes a joint venture be­

low er than what the Board

because w e

w ould consider as

appropriate. W e also agree with our colleagues’

tween the largest U .S . banking organization and

concern over the tendency o f many U .S . banking

one of the nation’s largest insurance companies,

organizations to pursue a policy o f rapid expansion

which, as noted above, is w holly-ow ned by the

and agree that funds earmarked for expansion by

largest retailer o f general merchandise in the U .S .

U .S . banking organizations with capital positions

C lose w orking relationships abroad between large

not considered to be appropriate should be used

U .S . banking organizations and large U .S . insur­

instead to strengthen the capital position o f such

ance companies could in time w eave a matrix o f

organizations. H ow ever, w e wish to note that our

relationships between the joint venturers in the

decision is based solely on the above factors.

U .S .

and abroad that could

lead to an undue

In our view , Applicant has demonstrated in the

concentration o f economic resources in the d o ­

record that there is a broad array o f very close

mestic and foreign commerce o f the United States.

links between banking organizations and all types

The Board concluded that such potentially adverse

of insurance activities in most European countries.

effects could result from the proposed application

A ccordin gly, for reasons stated more fully in our

and that such potential effects w ould clearly not

dissent to the application o f First National City

be consistent with the purposes of the Bank H o ld ­
ing Com pany Act, nor in the public interest.

Overseas Investment Corporation to acquire voting

The Board also noted its general concern with

ense, S . A ., Rio de Janeiro, B razil, which has also

the tendency o f many U .S . banking organizations

this day been denied by the B oard, w e w ould be

to pursue a policy o f rapid expansion in domestic

w illing to approve an application by a bank hold­

shares o f Com panhia de Seguros A rgo s Flumin-

and foreign markets. Such expansion can expose

ing company to engage in insurance underwriting

the organizations to potential liabilities and risks

activities in Europe if the size o f the proposed

disproportionate to the stated size o f their invest­

investment and capital position o f the holding

ment in any particular venture. Such expansion

company were, under the circumstances, deemed

should therefore be premised on a strong capital

to be appropriate.

base. W h ile the Board recognizes the quality and
experience o f the A pplican t’s management, the
present capital position o f the Applicant is som e­
what low er than what the Board w ould consider
appropriate in light o f its recent asset growth. In
such circumstances, the B oard w ould prefer to see

ORDERS UNDER SECTION 25 (a) OF
FEDERAL RESERVE ACT
F IR S T C H I C A G O I N T E R N A T I O N A L F I N A N C E
C O R P O R A T I O N , C H I C A G O , IL L I N O I S

funds first used to enlarge the capital position of

O r d e r A p p r o v in g I n v e s t m e n t in

such organization.

D e n y in g

Based upon the foregoing and other consid­




E spano l

Investm ents
U .K .

a n d

in

U n it e d

S e r f in c o

B anco
C h in e s e

a n d

Po pu lar
B an k

520

FEDERAL RESERVE BULLETIN □ JULY 1974

First C hicago International Finance Corpora­

organizations to substantial risks and therefore

tion, C hicago, Illinois, has applied for the B o ard ’s

such expansion should be supported by a strong

consent under § 25 (a) o f the Federal Reserve Act

capital base. W h ere the asset growth of a banking

to acquire, directly or indirectly, 50 per cent of

organization has been rapid, the Board w ill give

the shares o f Serfinco, M adrid, Spain; 50 per cent

careful consideration to proposals that w ould apply

o f the shares o f B anco Popular Espanol

funds toward further expansion, rather than toward

U .K .

( “ B an co ” ), London, England; and 25.1 per cent

augmenting the capital and liquidity positions of

or more o f the shares o f United Chinese Bank

the organization. In such* circumstances em ploy­

( “ U C B ” ), H ong K ong.

ment o f funds to enlarge the organization’s capital

Applicant is a corporation organized under §

and liquidity positions w ill be the preferred course

2 5(a) o f the Federal Reserve Act (an “ E dge cor­

of action and the alternative utilization o f funds

poration” ) and is a w holly-ow ned subsidiary of

for further expansion w ill not ordinarily be fa ­

First National Bank o f Chicago, C hicago, Illinois

vored.

financial

First C hicago Corporation, through direct and

operations in several foreign countries. F N B C has

indirect subsidiaries, has a substantial involvement

( “ F N B C ” ),

which

has

banking

and

consolidated assets o f approximately $15 billion1

in foreign banks and financial institutions. A p p li­

and is a w h olly-ow ned subsidiary o f First Chicago

cant already has a w h olly-ow n ed merchant bank

Corporation, Chicago, Illinois, the second largest

in London, First Chicago Limited, and a finance

banking organization in Illinois and the ninth larg­

company in H ong K o n g, First C hicago H ong K ong

est in the nation.

Limited. H ow ever, in Spain, First C hicago has

E dge corporations are organized for the purpose

only a representative office. A pplican t’s acquisi­

o f engaging in international or foreign banking or

tion o f Banco w ould not represent a significant

other international or foreign financial operations.

additional

initial

investment.

H o w ever,

Banco

Serfinco, which is presently ow ned primarily by

represents the first venture o f a Spanish bank into

Banco Popular Espanol ( “ B P E ” ), M adrid, Spain,

the London market and it can be expected to play

is a finance company that is engaged in granting

a major role in the syndication o f Spanish E uro­

consumer credit, discounting bills o f exchange,

dollar issues. Applicant is already heavily engaged

making m ortgage loans and financing capital goods

in the Eurodollar syndication business through

and equipment. Banco, a proposed joint venture

First C hicago

o f B P E and Applicant w ould be located in London,

appropriate for Applicant to increase its activity

w ould conduct the activities o f a merchant bank,

in such business at this time. Applican t’s initial

including syndicating Eurocurrency loans, arrang­

investment

ing private placements o f corporate securities and

w ould likely involve commitments o f significant

underwriting or managing Eurocurrency bond or

additional funds in the near future.

in

Limited

UCB

and it does not appear

w ould

be

substantial

and

note issues. U C B is a full service foreign com ­

Neither Applicant nor its parent corporations

mercial bank with one office and eight branches

presently have a company in Spain and entry into

in H o n g K ong. The activities o f Serfinco, Banco

Spain through

and U C B are o f banking or financial nature and

opportunity for a United States financial institu­

Serfinco represents an

excellent

none o f these companies conduct any business in

tion. Further, Serfinco w ould confine its activities

the United States, other than normal correspondent

to local market operations and w ould not engage

banking transactions. The activities o f these three

in Euro-financing transactions. On this basis and

companies are permissible for subsidiaries of Edge

in view o f the limited investment involved, the

corporations.

Board concludes that A pplican t’s acquisition o f

Applicant’s parent corporation, F N B C , has ex­
perienced rapid growth o f its assets during the
period o f

shares of Serfinco should be approved.
Based upon the foregoing and other consid­

1968 to 1973, and somewhat slower

erations reflected in the record, the Board con­

expansion o f its capital and liquidity base during

cludes that: the acquisition of shares o f Banco and

the same period. The Board has recently expressed

U C B w ould not be in the interests of the United

its general concern with the tendency o f many

States or in the public interests and those applica­

U .S . banking organizations to pursue a policy of

tions are hereby denied; and the acquisition o f

rapid expansion in domestic and foreign markets.

shares o f Serfinco is in the interest o f the United

It was noted that such expansion can expose the

States and in the public interest and that applica­
tion is hereby approved subject to the provisions
o f § 25 (a) o f the Federal Reserve A ct and the

'All financial data are as of December 31, 1973.




provisions of the B o a rd ’s Regulation K.

521

LAW DEPARTMENT

B y order o f the Board o f Governors, effective

It is proposed that A rgo s w ill engage in the activi­
ties o f underwriting all insurance related to exten­

June 27, 1974.

sions o f credit by F N C B ’s Brazilian branches and
Voting for this action: Chairman Burns and Governors
Brimmer, Bucher, and Holland. Present and abstaining: Gov­
ernor Sheehan. Absent and not voting: Governors Mitchell and
Wallich.

(S ign ed )
[s e a l]

affiliates including: life, accident and health, fire
and theft, automobile collision, risk-floater p oli­
cies on leased equipment, and burglary. A rgo s also

F e ld b e r g ,

intends to underwrite non-credit related insurance

Secretary o f the Board.

including: group life, accident and health insur­

C h e s te r

B.

ance plans, import and export marine policies,
F IR S T N A T I O N A L C I T Y O V E R S E A S

individual life, accident and health, fire and theft,

IN V E S T M E N T C O R P O R A T IO N ,

and automobile collision insurance.

NEW YORK, NEW YORK
O rder

D e n y in g

Seguros
R io

Investm ent

A rgos
de

in

If the proposed acquisition were approved, the

C o m p a n h ia

de

majority o f A r g o s ’ shares w ould be owned by
Applicant and C hubb & Son, Inc., N e w Y o rk ,

F l u m in e n s e , S .A .,

N e w Y o rk ( “ C h u b b ” ), which w ould ow n 41.5

Ja n e ir o , B r a z il

per cent o f A r g o s ’ shares. C hubb is a subsidiary
First National City Overseas Investment C o r­

o f C hubb C orp ., N e w Y o rk , N e w Y o rk , a U .S .

poration, N e w Y o rk , N e w Y o rk ( “ A pplican t” ),

insurance holding company with total assets o f

has applied for the B o a rd ’s consent under § 25(a)

approximately $1.5 billion as o f Decem ber 31,

o f the Federal Reserve Act to continue to hold

1973.

the shares o f F N C

Com m ercio e Participacoes

E dge corporations are organized for the purpose

S . A ., R io de Janeiro, B razil, after the latter ac­

o f engaging in international or foreign banking or

quires 39.5 per cent o f the voting shares o f C o m ­

other international or foreign financial operations.

panhia de Seguros A rgo s Fluminense, S . A ., Rio

In keeping with this statutory purpose, it has been

de Janeiro, Brazil ( “ A r g o s ” ).

B oard policy that it is inappropriate for an E dge

Applicant is a corporation organized under §

corporation to acquire a significant ownership in­

25(a) o f the Federal Reserve Act (an “ E dge cor­

terest3 in a foreign company that is not engaged

poration” ) and is a w holly-ow ned subsidiary o f

in international or foreign banking or other inter­

First National City Bank, N e w Y o rk , N e w Y o rk

national or foreign financial operations. General

( “ F N C B ” ), which has a w orldw ide banking busi­

insurance underwriting has not been authorized by

ness with branches and subsidiaries located in

the Board as within the scope o f financial opera­

countries throughout the world. F N C B , with con­

tions to be conducted by foreign companies in

solidated assets of approximately $42.6 b illio n ,1

which an E dge corporation proposes to acquire a

is a w holly-ow ned subsidiary o f First National City

significant ownership interest.

Corporation, N e w Y o rk , N e w Y o rk , the largest

A m o n g A pplican t’s arguments for approval are

banking organization in N e w Y o rk State and the

that general insurance underwriting is usual in

second largest nationally.

connection with the business o f banking in Brazil

Applicant, which at present indirectly owns 20
per cent o f the voting shares of A rgo s under the
general

consent procedures

of

Regulation

K ,2

proposes to acquire indirectly an additional 19.5
per cent o f the voting shares o f A rgo s

under

Regulation K , thereby bringing its total investment
in A rgo s to a 39.5 per cent share interest. A rgo s,
the oldest

insurance

underwriting

company

in

Latin Am erica, engages in the underwriting o f

and that A pplican t’s performance o f these activi­
ties w ill enable it to compete more effectively with
the major local banks in Brazil, which have much
wider branching systems and larger local currency
resources. In A pplican t’s opinion, the proposed
acquisition w ill enable F N C B to increase its par­
ticipation in profitable financially related activities
in Brazil and to serve its ow n insurance and credit
protection needs.

insurance and is authorized to operate in all lines
o f insurance, including individual and group life.
3In g e n era l, the B o a rd co n siders a sign ifican t o w n ersh ip
interest to be any in vestm en t rep resen tin g m o re than 25 per
*A11 financial data fo r F N C B are as o f D e c e m b e r 31, 1973.
U n d er § 2 1 1 .8 (a ) o f R eg u la tio n K , an E d g e co rpora tion
m ay acqu ire v o tin g shares o f a fo re ig n co m p a n y w ithou t
specific p rior B oa rd consent so lo n g as its in vestm en t does
not e x c e e d $ 5 0 0 ,0 0 0 o r 25 per cent o f the v o tin g shares o f
2

the fo re ig n c o m p a n y in v o lv e d .




cen t o f the fo re ig n c o m p a n y ’ s outstan ding v o tin g shares. In
the B o a rd ’ s ju d gm en t, o n ce the 25 per cen t lin e is passed,
the E d g e corpora tion u su ally ceases to be a m ere passive
in vesto r and takes an a c tiv e o p era tin g interest in the co m p a n y.
T h e B o a rd , h o w e v e r, m akes this particu lar ju d gm en t on the
facts o f each case.

522

FEDERAL RESERVE BULLETIN □ JULY 1974

In general, the Board believes that E dge cor­

and other E dge corporations, through insurance

porations, in conformity with the purposes o f the

brokerage activities

Edge A ct, should have greater freedom in their

Brazil and other countries, are competitive with

nonbanking

their Brazilian and other foreign banking counter­

activities

abroad

than

is

allowed

already permitted

them

in

banking organizations domestically, especially in

parts and are able to serve adequately and com ­

cases where such activities are necessary in order

petitively their ow n needs and those of their inter­

to remain competitive in international or foreign

national banking customers.

banking. H ow ever, the B oard also must consider

The Board was equally concerned with the fact

the impact which such nonbanking activities may

that this application proposes a joint venture be­

have on the financial strength and managerial re­

tween a subsidiary o f one o f the largest banks in

sources o f the parent U .S . banking organization

the U .S .

and any possible spill-over effects such foreign

financial and insurance group. Close w orking re­

activities may have on the separation o f banking

lationships abroad between large U .S .

and commerce in the United States.

organizations and large U .S . insurance companies

General

insurance

underwriting

involves

the

and a subsidiary o f a large domestic
banking

could in time w eave a matrix o f relationships

management o f risks qualitatively different from

between the joint venturers in the U .S . and abroad

those encountered in ordinary banking and familiar

that could lead to an undue concentration o f eco­

to bank management. It is an activity which re­

nomic resources in the domestic and foreign com ­

quires a large amount o f capital and specialized

merce o f the United States. The Board concluded

managerial resources. A s such, permitting U .S .

that such potential adverse effects could result

banking organizations to enter this activity abroad

from the proposed application and that such effects

through their E dge corporations could divert their

w ould clearly not be consistent with the purposes

capital and managerial resources aw ay from d o­

o f the E dge Act.

mestic banking affiliates. Such a potentially ad­

Based upon the foregoing and other consid­

verse consequence w ould not be consistent with

erations reflected in the record, the Board denies

the purposes o f the E dge Act.
In deciding this application,

Applicant’s proposed additional indirect invest­
the Board

also

carefully considered the impact o f E dge corpora­
tions engaging in insurance underwriting abroad
in light of the prohibitions in the E dge Act de­
signed to maintain the separation o f banking from
commerce within the United States. The growth
o f international trade is bringing foreign and d o­

ment in A rgos.
B y order o f the B oard o f Governors, effective
June 19, 1974.
Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Bucher, and Holland. Voting against this
action: Governors Sheehan and Wallich.

(S ign ed )

mestic markets for goods and financial services
closer together. A s this trend continues, the line
between banking and commerce in the U .S . could
be blurred as foreign nonbanking activities are
progressively intertwined with domestic

opera­

B.

C h e s te r

F e ld b e r g ,

Secretary o f the Board.

[s e a l]
D is s e n t in g
G overnors

State m e n t

Sh e eh an

a n d

o f

W a l l ic h

tions. In the case o f casualty insurance, in partic­

W e dissent from the B o a rd ’s denial o f the sub­

ular, including import and export marine policies

ject application. The U .S . public has already ben­

as proposed in this application, exposure to over­

efited by the ability o f E dge corporations to expand

lap appears especially great because o f the trans­

and diversify their operations in foreign econo­

national nature o f that business. The B oard con­

mies. This effect w ould be enhanced by A p p li­

cluded that permitting E dge corporations to ac­

cant’s engaging in the insurance activities applied

quire a significant ownership interest in a foreign

for herein. T o restrict E dge corporations abroad

com pany engaged in the general insurance un­

in their ability to compete effectively in these

derwriting business could have potentially adverse

foreign markets, and thus preserve and maintain

effects on the long-standing Congressional policy

their already established position,

in the E dge A ct o f keeping banking and commerce

detriment to the basic interests o f the U .S . public

separated domestically.

w ould

be a

and economy. These interests require that A m e ri­

W h ile Applicant does demonstrate in its appli­

can financial institutions be competitive in foreign

cation that many Brazilian banks do have insur­

markets. Profits from the proposed joint venture

ance affiliates engaged in general insurance un­

would inure not only to the benefit o f U .S . share­

derwriting, in the B o a rd ’s judgment, Applicant

holders o f the companies involved but also to the




LAW DEPARTMENT

523

real and strong possibility in this application that

benefit of the U .S . economy through the strength­
ening o f our balance of payments.

if Applicant fails to establish a meaningful capa­

In our judgment, Applicant has conclusively
demonstrated in the record that the major Brazilian

bility to underwrite insurance in Brazil it w ill be

banks have insurance underwriting affiliates and

counterpart Brazilian banking operations.

at a severe competitive disadvantage vis-a-vis its
For the foregoing reasons, w e conclude that the

that this activity is usual in connection with the

subject application should be approved.

business of banking in Brazil. There seems a very

ORDERS NOT PRINTED IN THIS ISSUE
During June 1974, the Board of Governors approved the applications listed below . The orders have
been published in the Federal Register, and copies o f the orders are available upon request to Publications
Services, Division o f Administrative Services, Board o f Governors of the Federal Reserve System,
W ashington, D .C . 20551.

ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY
Federal
Effective

Register

Bank

date

citation

Am erican Bank and Trust C o. o f Pa. ,

6/17/74

39 F .R . 22468

6/19/74

39 F .R . 24061

6/28/74

39 F .R . 25364

Applicant
Am erican Bancorp, Inc.,
Reading, Pennsylvania
First A lgon qu in Com pany,
L aG ran ge, Illinois
First Kentucky National
Corporation, Louisville,

6/24/74

Reading, Pennsylvania
A lgon quin State Bank,
A lgon quin , Illinois
First National Bank o f Louisville,

6/28/74
7/2/74

Louisville, Kentucky

Kentucky
Farmers State Bank o f Superior,

F .S .B ., Inc.,
Superior, Nebraska
Intermountain Bancorp, Inc.,
Westminster, C olorado
Rush County Insurance A gency,
Inc., L a Crosse, Kansas

6/24/74

39 F .R . 24435

6/7/74

39 F .R . 21087

6/3/74

39 F .R . 20649

7/2/74

Superior, Nebraska
First National Bank,

6/15/74

Westminster, Colorado
The H om e State Bank,

6/12/74

L a Crosse, Kansas

ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK
Federal
B an k (s)

Applicant
Bancshares o f N e w Jersey,
M oorestow n, N e w Jersey
Ellis Banking Corporation,
Bradenton, Florida

Prospect Park National Bank,

Effective

R egister

date

citation

6/10/74

39 F .R . 21192

6/6/74

39 F .R . 20728

6/13/74

W ay n e, N e w Jersey
Ellis National

Bank o f W est H ills-

6/13/74

borough, and Ellis National Bank
o f Davis Islands, both proposed
new banks to be located in
Tam pa, Florida

First A labam a Bancshares, Inc.
Birm ingham , A labam a
First Banc G roup o f O hio, Inc.
Colum bus, O hio




First City National Bank o f Gadsden,

6/4/74

39 F .R . 20649

6/5/74

39 F .R . 20729

6/12/74

Gadsden, A labam a
The Athens National Bank,
Athens, Ohio

6/13/74

524

FEDERAL RESERVE BULLETIN □ JULY 1974

ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK

A p p lica n t
First City Bancorporation of
Texas, Inc., Houston, Texas
First City Bancorporation of
T exas, Inc., Houston, Texas
First International Bancshares,
Inc., Dallas, Texas
First M idw est Bancorp, Inc.,
St. Joseph, M issouri
Greater Jersey B ancorp.,

Bank(s)
A lm eda-G en o a Bank,
Central National Bank,

39 F .R . 25361

6/28/74

39 F .R . 25361

6/7/74

39 F .R . 21010

6/28/74

39 F .R . 25364

6/14/74

39 F .R . 22470

6/26/74

39 F .R . 25367

7/10/74

Arlington, Texas
M ain Bank and Trust,

7/10/74

San Antonio, Texas
The H om e Bank,

6/17/74

Savannah, M issouri
Plaza National Bank,

Clifton, N e w Jersey

Secaucus, N e w Jersey
First Central State Bank,

Federal
R egister
citation

6/26/74

Houston, Texas

O hnw ard Corporation,
M aquoketa, Io w a

Effective
date

7/10/74
6/24/74

D eW itt, Io w a

7/2/74

ORDER UNDER SECTION 3(a)(5) OF BANK HOLDING COMPANY ACT—
APPLICATION TO MERGE BANK HOLDING COMPANIES

A p p lica n t
Boatm en’s Bancshares, Inc.,
St. Louis, M issouri

Bank H old in g Company
U .N . Bancshares, Inc.,

Effective
date

Federal
R egister
citation

6/25/74

39 F .R . 24435

Springfield, M issouri

7/2/74

ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACTAPPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES

A p p lica n t
Bankers Trust N e w Y ork
Corporation, N e w Y o rk City,

Nonbanking Company
(o r activity)
California Bankers Trust Com pany,

Effective
date
6/17/74

L o s A ngles, California

Federal
R egister
citation
39 F .R . 22468
6/24/74

N e w Y o rk
B oatm en’s Bancshares, Inc.,
St. Louis, M issouri
First Plaza Com pany,

U .N . Bancshares, Inc.,

6/25/74

39 F .R . 24435

6/7/74

39 F .R . 21087

Springfield, M issouri
Intermountain M ortgage C o. and

Lincoln, Nebraska and

Intermountain Insurance, Inc.,

Intermountain Bancorp,

both of Westminster, C olorado

7/2/74
6/15/74

Inc., Westminster,
Colorado
N am y aw Corporation, Inc.,
Em poria, Kansas
National Central Financial
Corporation, Lancaster,

N am y aw Insurance A gen cy ,

6/24/74

39 F .R . 24275

6/5/74

39 F .R . 20729

Em poria, Kansas
Hartzler M ortgage Com pany,

7/1/74

Colum bus, Ohio

6/13/74

Pennsylvania
Rush County Insurance A gen cy,
Inc., L a Crosse, Kansas




Full Service Insurance Incorporated,
L a Crosse, Kansas

6/3/74

39 F .R . 20649
6/12/74

525

LAW DEPARTMENT

ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT—
APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES

A p p lica n t
Society Corporation,

Society L ife Insurance Com pany,

Cleveland, O hio

Federal
R egister
citation

Effective
date

Nonbanking Company
(o r activity)

6/19/74

39 F .R . 24062

6/\0/74

39 F .R . 21090

6/28/74

Phoenix, A rizona

Zions Utah Bancorporation,
Salt Lake City, Utah

M auss Finance Com pany,
T w in Falls, Idaho

6/18/74

ORDERS UNDER BANK MERGER ACT—
APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS

A p p lica n t
Euclid Street State Bank,
San Antonio, Texas

Bank
M ain Bank and Trust,

Effective
date

Federal
R egister
citation

6/7/74

39 F .R . 21010

San Antonio, Texas

6/17/74

ORDERS ISSUED BY FEDERAL RESERVE BANKS
During June 1974, applications were approved by the Federal Reserve Banks under delegated authority
as listed below . The orders have been published in the Federal Register, and copies o f the orders
are available upon request to the Reserve Bank.

ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK

A p p lica n t
Southern Bancorporation,
Birm ingham , A labam a
Tennessee V alley Bancorp,
Inc., N ashville,

Bank(s)
Capitol National Bank o f

Reserve
Bank

Effective
date

Federal
R egister
citation

Atlanta

6/7/74

39 F .R . 21089

M ontgom ery, M ontgom ery,
A labam a
The U nion Bank,

6/18/74
Atlanta

6/11/74

M c E w e n , Tennessee

39 F .R . 22471
6/24/74

Tennessee
Am erican Bankcorp, Inc.,
Lansing, M ichigan
Fidelity Financial C o rp o ­
ration o f M ichigan,

The State Bank o f Perry,

Chicago

6/19/74

39 F .R . 24483

C hicago

6/19/74

39 F .R . 24436

Perry, M ichigan
Fidelity Bank o f Southfield,

7/2/74

Southfield, M ichigan

7/2/74

Birm ingham , M ichigan
Texas Com m erce Bancshares, Guaranty National Bank and
Inc., Houston, Texas

Dallas

6/11/74

Trust of Corpus Christi,

39 F .R . 22472
6/24/74

Corpus Christi, Texas
Texas Com m erce Bancshares, Union Bank o f Fort W orth,
In c ., Houston, Texas




Fort W orth, Texas, and First
National Bank o f Hurst,
Hurst, Texas

Dallas

6/14/74

39 F .R . 24063
6/28/74

FEDERAL RESERVE BULLETIN □ JULY 1974

526




REVISED RATES FOR THE BULLETIN
In view o f substantial increases in the cost of p ub­
lishing and distributing the Federal Reserve
le tin ,

subscription

rates

and

the

B u l­

per-copy

charges have been revised. Effective A ugust 1,
1974, the rates shown below will apply.
Annual subscriptions:
Domestic ........................................................... $20.00
Member banks1 .................................................
10.00
Foreign .............................................................. 24.00
Single copies:
Domestic ...........................................................
Foreign ..............................................................

2.00
2.50

Quantities:
Annual subsubscriptions for
10 or more copies sent to
a single address .................................................

18.00

10 or more copies of one issue
sent to a single address ......................................

1.75

' A c o p y o f the Federal R e s e rv e B u l l e t i n is sent to each
m em b er bank w ithou t ch arge; m em b er banks d es irin g a d d i­
tional c o p ies m ay obtain them at the special $ 1 0 .0 0 annual
rate.

Announcements
CITICORP ISSUE OF FLOATING RATE NOTES:
CORRESPONDENCE

CHANGES IN BOARD STAFF
The Board of Governors announced on July 16,
1974,

a reorganization o f its staff, including es­

The B oard of Governors sent the fo llo w in g letter

tablishment o f a new Office o f Saver and C o n ­

to Chairman Ray Garrett, Jr., o f the Securities and

sumer Affairs. The new office, to begin operation

Exchange Com m ission in response to a request for

August 5, w ill com bine in a separate department

co m m en t

two sections of the existing Division o f Supervi­

prospectus of Citicorp covering its proposed issue

w ith

re sp ect

to

the

p re lim in a ry

sion and Regulation: Securities Credit and Truth

o f Floating Rate Notes due 1989.

in Lending. It was created also in anticipation of
the

B o a rd ’s

possible

responsibilities

for

im ­
July 2, 1974

plementation of certain pending consumer affairs
legislation.
The Director of the new office w ill be Frederic

Dear Mr. Garrett:

Solom on, w ho has been Director of the B o ard ’s

This is in reply to the request of your Division of
Corporation Finance dated June 24, 1974, for Board
comment on the preliminary prospectus of Citicorp
covering its proposed issue of $250 million (since raised
to $850 million) of Floating Rate Notes due 1989.
Citicorp, as a registered bank holding company, is
subject to the rules and regulations issued by the Board
under the Bank Holding Company Act of 1956; First
National City Bank, a wholly owned subsidiary of
Citicorp, is directly supervised by the Comptroller of
the Currency but for certain matters is subject to the
rules and regulations applicable to member institutions
of the Federal Reserve System.

Division

of

Supervision

and

Regulation

since

1959. Janet Hart, currently Assistant Director in
the Division of Supervision and Regulation, will
be Deputy Director.
A t the same time, the Board announced other
major staff structure and responsibility changes:
J. Charles Partee continues as M anaging D irec­
tor for Research and Econom ic Policy.
Effective August

19, Daniel

M.

D o y le

w ill

becom e M anaging Director for Operations,

re­

placing D avid C . M eln icoff w ho has announced
his resignation as M anaging Director for O pera­
tions and Supervision.
L yle E. G ram ley, now Deputy Director o f the
Division o f Research and Statistics, w ill become
Director o f that D ivision, effective August 5.
Effective A ugust 5, the D ivision o f Supervision
and Regulation w ill be renamed the Division o f
Banking Supervision and Regulation, with Brenton C. Leavitt as Director. M r. Leavitt w ill con­
tinue as Program Director for Banking Structure.
John

M.

troller, w ill

Denkler,
be

currently

Deputy

Assistant

M anaging

C on­

Director for

Operations, effective A ugust 19.
A lso effective August 5, Robert J. Zem el w ill
become Assistant Director o f the D ivision of Data
Processing. M r. Z em el, a graduate of the City
C ollege o f N e w Y o rk , has been with the Board
since 1969.
The Board o f Governors of the Federal Reserve
System announced the appointment o f Thomas J.
O ’Connell, General Counsel, as Counsel to the
Chairman, effective July 10, 1974.
A lso effective July 10 A ndrew F. Oehmann was
named Acting General Counsel.




Due to the specific characteristics of the proposed note
issue, which include an interest rate that varies over
time with the yield on 90-day Treasury bills and the
option given to the holder to present the notes for
redemption semiannually on 30 days’ notice, it seems
highly probable that the securities in question will
appeal to relatively small investors, such as individuals.
W e understand that Citicorp proposes to limit subscrip­
tions to not l£ss than $5,000 or more than $50,000.
Thus, it seems clear that the proposed issue will compete
directly for funds that might otherwise be invested in
time or savings deposits at commercial banks and other
thrift institutions. Savings flows to these institutions
have already fallen off in recent months, and the addi­
tional diversion of funds into the Citicorp issue may
further worsen the experience of these institutions.
Competition for the funds of the saving public ought
to be encouraged, as a general principle, because it
increases the returns available to savers and normally
tends to encourage efficient use of the Nation’s financial
resources. Given the present sensitive state of financial
markets and the extent to which savings institutions are
already under heavy pressure, however, the result of
the present large offering— and any other offering like
it, whether issued by bank holding companies or other
corporations— can well be to divert the flow of savings
from the residential mortgage market and to deprive
homebuyers of needed mortgage financing. It is not
clear, therefore, that an offering of this type is in the
public interest at this time.

FEDERAL RESERVE BULLETIN □ JULY 1974

528

The Board’s present statutory powers do not authorize
it either to prevent or to regulate the terms of the
Citicorp issue. The legislative history of the 1969
amendments to the Federal Reserve Act, which author­
ized the Board to determine what types of obligations
issued by affiliates of member banks may be deemed
to be deposits for purposes of the Board’s regulations,
makes it clear that such authority applies only to the
extent that the proceeds of such affiliate obligations are
used for the purpose of supplying funds to a member
bank. To the extent that the proceeds of the Citicorp
Notes may be used for supplying funds to member
banks, they would be subject to reserve requirements,
but not otherwise. Further, the Board has no grounds
for objecting, under the authority of the Bank Holding
Company Act, to the terms of the proposed security
issue. Indeed, the financing would appear to improve
the financial condition of Citicorp.
Nevertheless, in the interest of full and fair disclo­
sure, the Board urges that all necessary steps be taken
to make investors aware that the Citicorp Notes are not
obligations of a bank and are not insured by the Federal
Deposit Insurance Corporation. W e would suggest that
the SEC require the facing page of the prospectus be
amended to include, in a prominent position in 10-point
bold-face type, a statement along the following lines:
THESE NOTES ARE U N S E C U R E D DEBT
O B LIG A T IO N S OF CITICORP, ARE N O T
L E G A L L Y E N F O R C E A B LE O B L IG A ­
TIONS OF A N Y B A N K A N D ARE N O T
IN SU R E D B Y THE FE D E R A L DEPOSIT
IN S U R A N C E C O R PO R ATIO N .
It is further suggested that the underwriters of the issue
be required to include a similar legend in any adver­
tisement of the Note issue, and that Citicorp include
the same qualification on the face of any notes that may
be issued subsequently.
The Board’s staff is currently reviewing the prospec­
tus and will communicate with your staff in the next
few days regarding any additional comments that it may
have.
Very truly yours,
George W . Mitchell

*

*

*

Dr. Arthur F. Burns, Chairman o f the Board of
Governors of the Federal Reserve System, sent
the follow in g telegram on July 9, 1974, to Citi­
corp, N e w Y o rk City, concerning its proposal to
issue $850 million in floating-rate notes:

In view o f some concern on the part
o f Congress and the regulatory

agen­

cies, I most earnestly request that you
postpone for an interval o f two weeks
the Citicorp floating interest rate issue.
Such

an

interval

w ould

enable

the

Congress and the Government officials
principally concerned to study with due




deliberation the economic and financial
implications o f this novel type o f issue.

At the same time, the Board sent the fo llo w in g
letter to Senator W illiam Proxmire of W isconsin.
July 9, 1974
Dear Senator Proxmire:
Your letter of July 8 requests the assistance of Board
staff in developing possible legislative proposals that
would give us authority to deal with bank holding com­
pany security offerings such as the proposed Citicorp
issue. W e are glad to comply, and our staff will be
in touch with Mr. Shuman.
It is difficult at this time to predict what the effects
of the Citicorp issue, and others like it that may follow,
would be on the pattern and geographic distribution of
financial flows. It seems probable that banks and thrift
institutions would lose deposits to instruments of this
type and, if the volume of such offerings were large,
the amount of disintermediation could be significant.
It should be recognized, however, that a sizable
proportion of the subscriptions to such issues would
represent shifts from other market instruments or the
placement of funds that might have been withdrawn
from banks and thrift institutions in any event.
The specific features of the proposed Citicorp issue
are designed to be attractive to relatively small inves­
tors, and would place them more nearly on a parity
with large investors so far as yields are concerned. On
balance, it is not obvious that the long-run public inter­
est would be best served by prohibiting or limiting in­
novative efforts of this kind. Instead it might be prefer­
able to make plans for special assistance to the savings
institutions and for provision of an adequate volume
of housing finance. For example, the present program
of subsidized lending by the Federal Home Loan Bank
System might be expanded, and perhaps extended to
mutual savings banks. Also, it may be desirable for
Congress to consider permitting the Federal agencies
to authorize the issuance of variable-rate deposit obli­
gations not subject to interest rate ceilings. As offerings
of the type proposed by Citicorp may proliferate, we
believe that any such administrative plans and legisla­
tive proposals should be formulated promptly.
If, however, the Congress wishes to limit the ability
of bank holding companies to offer instruments that
might compete unduly with savings deposits, two pos­
sibilities come to mind. First, the Congress could indi­
cate its intent, in PL 91-151, to give the Board author­
ity to regulate the terms of the note issues of bank hold­
ing companies and their non-bank subsidiaries— re­
gardless of the intended use of the proceeds. This would
make it possible, for example, for the Board to limit
the ability of the issuer to offer investors the option of
periodic redemption of their notes. This redemption
opportunity— particularly since it applies from issue
date forward at six-month intervals— is the main fea­
ture that makes the proposed Citicorp issue appear sim­
ilar to a time deposit.
A second approach, entailing more extensive regula­
tory involvement, would be to broaden existing regula­
tory authority with respect to the issuance of a “ cease

ANNOUNCEMENTS

529

and desist” order so that the Board, on a case-by-case
basis, could determine that a proposed note issue would
have a sufficiently adverse impact on financial markets
or depositary institutions to justify imposition of appro­
priate restrictions by the Board. Such authority would
be extremely broad and flexible in character. It would
not, of course, apply to issues by any corporations not
affiliated with bank holding companies.

financial institution to act responsibly in the public in­
terest.
Sincerely yours,
Walter B. Wriston

July 11, 1974

Sincerely,
Arthur F. Burns

*

*

*

The Board of Governors o f the Federal Reserve
System made public on July 12, 1974, the fo llo w ­
ing further exchange of correspondence between
Arthur F. Burns, Chairman of the Board of G o v ­
ernors, and W alter B. W riston, Chairman o f Citi­
corp, N e w Y o rk City.

July 11, 1974
Dear Mr. Chairman:
W e refer to your telegram of July 9 in which you
request that time be taken to think through the eco­
nomic and financial implications of Citicorp’s proposed
note issue. As you know, we greatly respect your
views, and want to do everything we can to accommo­
date them. With this in mind, I arranged to call upon
you yesterday to explore ways in which we might re­
solve your concerns. As I understand it, the principal
concern centers upon the possibility that the sale of
these notes would cause disintermediation, particularly
from thrift institutions.
The risk of possible disintermediation appears to
center on the fact that the proposed note issue contains
a provision that the purchaser of the note may ask the
Corporation to redeem it at six months’ intervals. O b­
viously, therefore, if this interval in the first instance
could be extended this perceived danger would be re­
duced accordingly. With this in mind, discussions have
been had with our underwriters as to how the note
could be modified to still retain what you have referred
to as “ the attractive yield feature,” while at the same
time minimizing the problems which you perceive.
After extensive negotiations, the underwriters have in­
dicated to us that even though the extension of any re­
demption period may have an adverse effect upon the
marketability of this issue, both they and we are
prepared to amend the provisions of the notes so that
no holder would have the right to request payment from
Citicorp prior to December 1, 1975, a period of nearly
one and a half years following the initial issuance.
Although we recognize, as you have previously
stated, that the Federal Reserve Board takes the posi­
tion that its present statutory powers do not authorize
it to regulate the terms of the Citicorp note issue, we
are also keenly aware of our responsibilities as a major




Dear Mr. Chairman:
W e refer to your telegram of July 9, our meeting
of July 10, our letter of July 11, and to subsequent
conversations. It is my understanding that the Board
of Governors does not feel that our proposal to post­
pone the first optional redemption date of the Notes to
December 1, 1975, fully responds to their concern, and
that this initial period should be extended to two years.
The difficulty in marketing the issue which may
reach $850 million is not unrelated to the length of time
intervening between the issuance of the Notes and the
first redemption date. In our continuing effort to be
fully responsive to the Board’s request, we have once
again gone back to our underwriters and urged that they
and we assume the additional risk which is inherent
in extending the initial redemption date. Because the
Notes are redeemable on interest payment dates which
are stipulated to be June 1 and December 1, the under­
writers will agree to accept an amendment to the terms
of the issue which will provide that the first redemption
date will fall on June 1, 1976. This would be a period
of nearly two years and I believe conforms very closely
to my understanding of the Board’s request.
In responding affirmatively to the Board’s request,
we reaffirm that we are keenly aware of our respon­
sibilities as a major financial institution to act responsi­
bly in the public interest.
Sincerely yours,
Walter B. Wriston

July 12, 1974
Dear Walter:
In view of your modification of the terms of the pro­
jected Citicorp note issue, as explained in your second
letter of July 11, 1974, namely that no holder of the
notes would have the right to request payment from
Citicorp before June 1, 1976, the Board feels that its
concern about the effects on thrift institutions is sub­
stantially reduced. From the viewpoint of the Board,
you have met the basic concern that gave rise to our
request for a postponement of the issue.
However, there may still be serious doubts on the
part of Congress and the other regulatory agencies, and
you may therefore still want to consider the suggestion
for a postponement that I made in my communication
of July 9.
Sincerely yours,
Arthur F. Burns

FEDERAL RESERVE BULLETIN □ JULY 1974

530

OTC CRITERIA AMENDED

F lorid a

The Board of Governors has amended, effective
July 25, the criteria that over-the-counter (O T C )
stocks must meet and must continue to meet to
be included on its List o f O T C M argin Stocks.

St. Petersburg

...

Ohio
Lorain

................

First Lorain Trust
Com pany

The amendments were substantially the same as
those that were published for comment on A pril

Bank o f Florida in
St. Petersburg

Painesville ............Lakeshore Trust Com pany

16, 1974.
The criteria em ployed in selecting O T C stocks
for inclusion on the List o f O T C M argin Stocks

V irg in ia

Charlottesville ... United V irginia Bank
o f Charlottesville

were announced on July 9, 1969. M ore than 600
stocks are now

on the list and subject to the

B o ard ’s margin requirements.

Hurt

.................... First Guaranty Bank

King George

___

The B o a rd ’s action, which make the criteria
somewhat

less

restrictive,

reflects

the

many

King G eorge State
Bank, Inc.

Petersburg

.......... Community Bank

changes that have occurred in the O T C market
since 1969, particularly the impact o f the National
Association

of

Securities

Dealers

Automated

BANKING OFFICES AND DEPOSITS OF BANKS IN
HOLDING COMPANY GROUPS,
DECEMBER 3 1 ,1 9 7 3 ERRATUM

Quotation System ( N A S D A Q ).

ADMISSION OF STATE BANKS TO MEMBERSHIP IN
THE FEDERAL RESERVE SYSTEM

The breakdown for the number o f bank holding
companies w as

The fo llow in g banks were admitted to m em ber­

inadvertently omitted from

ship in the Federal Reserve System during the

o f the June

period June 16, 1974, through July 15, 1974:

panies by State is shown in the table below .

S ta te

T o ta l

S ta te

j T o ta l

B u lle tin .

S ta te

50 S ta tes a n d D is t r ic t
o f C o lu m b ia ...........1,677
A la b a m a .....................
18
A la sk a .........................
2
A r iz o n a .......................
5
19
A rkan sas .....................
C a lifo rn ia ...................
42

Id ah o ..................... ...........
3
Illin o is .................... ...........153
Indiana .................. ........... 29
Io w a ..................... ...........140
Kansas .................... ...........124
K en tu ck y ............ ...........
9

M issou ri ................
M ontan a ................
N ebraska ................
N e v a d a ...................
N e w H am pshire
..
N e w J e r s e y ..............

C o lo ra d o .....................
C on n ecticu t ..............
D e la w a re ...................
D istrict o f C o lu m b ia . . .
F lo rid a .......................
G e o rg ia ......................
H a w a ii .......................

L ou isian a ............
M a in e ...................
M a ry la n d ............
M assachusetts
M ic h ig a n ..............
M in n e so ta ............
M iss is s ip p i ...........

N e w M e x ic o .........
N e w Y o r k ............
N o rth C a rolin a
N orth D akota ......
O h io .......................
O k la h om a ..............
O re go n ...................

73
9
3
5
62
30
1

........... 17
...........
7
........... 16
........... 28
........... 42
.......... 108
...........
4

N o t e .— D ata fo r in d ivid u a l States represent bank h o ld in g co m panies h a v in g su bsidiary banks in the re sp ective States rather
than bank h old in g co m p a n ies w h o se p rin cip al o ffices are
lo ca ted in such States. T o ta l d o es not equ al sum o f State




the

table on this subject that appeared on pp. A 8 0 -A 82

| T o ta l

95
32
127
3
..

6

19
11

45
7
18
36
55
5

The total number of com ­

S ta te

Pen n sylva n ia .......
R h od e Island
South C a rolin a
South D akota
T en n essee
T e x a s ...................
U tah .....................
V e rm o n t ..............
V ir g in ia ................
W a s h in gto n .........
W e s t V irg in ia
W isc o n s in ............
W y o m in g ............

j

T o ta l

25
...........
...........
...........
...........
...........
...........
...........
...........

10
8

28
19
92
10
2

26
5
9
56
22

figures because it has been c o rrected fo r du p lica tio n s; that is,
h old in g co m p a n ies that h a v e su bsidiary banks in m o re than
o n e State are in clu ded in the total o n ly on ce,

Industrial Production
Released for publication July 15

Industrial production remained unchanged in June
and at an estimated 125.5 per cent o f the 1967
average was virtually the same as a year earlier.
Declines in output o f consumer goods and business
equipment were offset by increases in production
o f intermediate products and industrial materials.
Preliminary figures for the second quarter as a
whole show a rise o f 1.3 per cent at an annual
rate from the first-quarter average.
Auto assemblies in June were at an annual rate
o f 7.7 m illion units, the same as in M ay, as work
stoppages were a factor limiting scheduled in­
creases. Output o f household appliances remained
at advanced levels, but production o f other durable
consumer goods declined. Output o f nondurable
consumer goods also declined, reflecting, in part,
a strike in the m en’ s clothing industry. Production
o f business equipment declined about 1 per cent
in June but was still 5 per cent above a year earlier.
Output o f both construction products and general
business supplies increased.
Production o f durable goods materials rose, as
output o f steel and various consumer durable ma­
terials and parts increased somewhat from the
near-capacity levels prevailing earlier. Production
o f most nondurable goods materials was un-

IN D U STR IAL PRODUCTION
Seasonally adjusted, ratio scale, 1967=100

1974

1968

1970

1972

F .R . in d ex es, sea so n ally adjusted. L a test figures: June,

changed.

S ea son a lly adjusted
1967 = 100

Per cent
changes fr o m —

1974

Industrial produ ction

Year
ago
Q4

A p r .r

M ayp

Ju nee

T o t a l ...................................................
Produ cts, total ............................................
Final products .........................................
C o n su m er g o o d s ................................
D u rable g o o d s ..............................
N o n d u ra b le g o o d s .......................
Business equ ip m ent .........................

124.9

125 .5
123.1

0

- .1

-.2

-.5

121.1

-.7

-.2

128.7
130.4
128.0
128.3

125.5
123.4
121.9
129.5
132.7
128.4
129.1

128.7
131.2
127.8
128.0

-.6
- 1.1

- 2 .4
-7 .5

-.5
-.9

-.2

Interm ediate products ..........................
C on stru ction products .....................
M aterials .......................................................

129.3
130.8
128.5

129.6
132.2
129.0

130.4
133.4
129.4

'Revised.

"Preliminary.




1974

1973
M onth
ago

1 2 2 .8
1 2 1 .0

Per cent ch a n ges, annual rate

1.3
1.3

-4 .0
3.1

—6 ,6
-5 .8
- 6 .5
-1 1 .5
-2 6 .6
-5 .2

4.5

8 .0

.6

-3 .1
6.3

.6

- 1.2

.9
.3

-.1

- 4 .8
-5 .6
.3

-4 .6
-5 .1
- 6 .7

3.1
2 .4
.3

.3

.9
1.3
3.3

Q2

Qi

1 .2

1 .0

.9
1 1 .6

'Estimated.

531

Financial and Business Statistics

CONTENTS
A

3

G U ID E T O T A B U L A R P R E S E N T A T IO N

A

3

S T A T IS T IC A L R E L E A S E S : R E F E R E N C E
U.S. S T A T IS T IC S :

A

4

M e m b e r bank reserves, Federal R eserve Bank

A
A
A
A
A
A
A

7

and related items
Federal funds— M ajor reserve city banks
R eserve B ank interest rates

A
A
A
A
A
A
A
A
A
A
A
A

8
9
10
11
12
13

R eserve requirem ents
M axim um interest rates; margin requirem ents
O pen m arket account
Federal R eserve Banks
Bank debits

14
15
16
20
25
26
27
27
28

M o n ey stock
Bank reserves; bank credit
C om m ercial banks, by classes
W eekly reporting banks

31
32
32

Security m arkets
Stock m arket credit
S avings institutions

Business loans of banks
D em an d deposit ownership
Loan sales by banks
O pen m arket paper
Interest rates

A
A
A

34

Federal finance

36
39

U.S. G o vern m en t securities
Federally sponsored credit agencies

A
A
A

40
43
44

Security issues

A

47

C onsum er credit




Business finance
R eal estate credit

Continued on next page




FEDERAL RESERVE BULLETIN □ JULY 1974

U.S. S T A T IS T IC S — Continued
A

50

Industrial production

A
A

52
52

Business activity
Construction

A
A

54
55

Labor force, em ploym ent, and unem ploym ent
C onsum er prices

A
A
A

55
56
58

W h olesale prices
National product and incom e
Flow of funds
IN T E R N A T IO N A L S T A T IS T IC S :

A
A
A

60
61
61

U.S. balance of paym ents
Foreign trade
U.S. reserve assets

A

62

U.S. gold transactions

A
A
A

63
76
77

International capital transactions of the United S tates
O pen m arket rates
C entral bank rates

A

77

Foreign exchange rates

A

78

Gold reserves of central banks and governm ents
T A B L E S P U B L IS H E D P E R IO D IC A L L Y :

A

79

S ales, revenue, profits, and dividends of large m an u ­
facturing corporations

A

80

Banking and m onetary statistics, 1973:
Principal assets and liabilities of com m ercial banks
and num ber, by class of bank

A

91

IN D E X T O S T A T IS T IC A L T A B L E S

A 3

G u id e t o T a b u la r P r e s e n t a t io n
SYMBOLS AND ABBREVIATIONS

e

N .S .A .

Estimated

c

Corrected

p

Preliminary

r

Revised

rp

Revised preliminary

IP C
SM SA
A
L
S
U
*

I, II,
III, I V Quarters
n.e.c.

Not elsewhere classified

A .R .

Annual rate

S .A .

Monthly (or quarterly) figures adjusted for
seasonal variation

Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Sources o f funds
Uses of funds
Amounts insignificant in terms of the par­
ticular unit (e .g ., less than 500,000
when the unit is millions)
(1) Zero, (2 ) no figure to be expected, or
(3 ) figure delayed

GENERAL INFORMATION
Minus signs are used to indicate (1 ) a decrease, (2)
a negative figure, or (3 ) an outflow.
A heavy vertical rule is used in the follow ing in­
stances: (1) to the right (to the left) of a total when
the components shown to the right (left) of it add to
that total (totals separated by ordinary rules include
more components than those shown), (2) to the right
(to the left) of items that are not part of a balance sheet,
(3) to the left of memorandum items.
“ U .S . Govt, securities” may include guaranteed
issues of U .S . Govt, agencies (the flow of funds figures

also include not fully guaranteed issues) as well as
direct obligations of the Treasury. “ State and local
govt.” also includes municipalities, special districts,
and other political subdivisions.
In some of the tables details do not add to totals be­
cause of rounding.
The footnotes labeled N o t e (which always appear
last) provide (1) the source or sources o f data that do
not originate in the System; (2 ) notice when figures
are estimates; and (3 ) information on other charac­
teristics of the data.

TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Q u a rterly

Issue

Sales, revenue, profits, and divi­
dends o f large manufacturing
corporations ..............................

July 1974

Pa ge

Banks and branches, number,
by class and State ...................... Apr. 1974
Flow o f funds:
Assets and liabilities:
1961-72 ............................... ... Sept. 1973
Feb. 1974

A -98

Feb. 1974

A -99

A n n u a lly

Bank holding companies:
Banking offices and deposits of
group banks, Dec. 31, 1973
Banking and monetary statistics:
1973...........................................

Issue

A-88— A-89

A -79

S em iannually

Banking offices:
Analysis o f changes in number
On, and not on, Federal Reserve
Par List, number .................

A n n u a lly — C on tin u ed

June 1974

A-80— A-83

Mar. 1974
July 1974

A-96— A-109
A-80— A-82

Flows:
1961-72

A -7 1 .14— A -71.28

............................... ... Sept. 1973

Income and expenses:
Federal Reserve Banks .............. Feb.
Insured commercial banks ...... ....June
Member banks:
Calendar year ....................... ... June
Income ratios ....................... ....June
Operating ratios .................. ....June

A-70— A -7 1 .13

1974
1974

A-96— A-97
A-84— A-85

1974
1974
1973

A-84— A-93
A-94— A-99
A-96— A - 101

Stock market credit ..........................Jan. 1974

A -9 6 — A -97

S ta tis tic a l R e le a s e s
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE

Anticipated schedule of release dates for individual releases




Issue

Pa ge

June 1974

A-106

A 4

BANK RESERVES AND RELATED ITEMS □ JULY 1974
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS

(In millions of dollars)
Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date

U.S. G ovt, securities 1

Total

Bought
ou t­
right

H eld
under
repur­
chase
agree­
ment

Float 2

Loans

Other
F .R .
assets 3

G old
stock
T o tal 4

Special
D raw ing
Rights
certificate
account

Treas­
ury
cur­
rency
out­
stand­
ing

Averages of daily figures
1939— D ec..............................
1941— D ec..............................
1945— D ec..............................
1950— D e c ..............................
I960— D ec ..............................

2,510
2,219
23,708
20,345
27,248

2,510
2,219
23,708
20,336
27,170

1968— D e c ..............................
1969— D ec...............................
1970— D ec...............................
1971— D ec...............................
1972— D ec...............................

52,529
57,500
61,688
69,158
71,094

52,454
57,295
61,310

1973— June.............................
July..............................
A u g ..............................
Sept..............................
O ct................................
N o v ..............................
D e c ...............................

75,355
77,448
76,653
76,073
78,042
78,457
79,701

1974— Jan................................
F e b . . ...........................
M a r..............................
A p r ...............................
M a y .............................
June?5...........................

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

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

56,610
64,100
66,708
74,255
76,851

10,367
10,367
11,105
10,132
10,410

400
400
400

1,078
1,079

"80,547
"83,929
"82,443
"81,810
"83,644
"83,756
85,642

10,410
10,410
10,410
10,410
10,933
11,567
11,567

400
400
400
400
400
400
400

8,518
8,538
8,549
8,584
8,613
8,642

3,385
2,300
1,816
2,295
2,025
2,017

1,258
1,117
960
1,160
1,093
1,106

86,568
85,493
84,943
86,907
89,405
89,156

11,567
11,567
11,567
11,567
11,567
11,567

400
400
400
400
400
400

8.705
8,747
8,767
8,807
8,838
8,877

9
78

5
381
142
94

83
170
652
1,117
1,665

75
205
378
290
304

765
1,086
321
107
1,049

3,251
3,235
3,570
3,905
3,479

75,047
76,875
76,475
75,712
77,500
77,937
78,833

308
573
178
361
542
520

r2,371
"3,162
r2 , 563
'2,925
"2,936
"2,764
3,414

942
1,180
1,018
889

868

rl ,788
2,051
"2,144
1,861
rl ,465
1,399
1,298

80,793
80,801
80,686
81,567
83,434
82,812

80,608
80,551
80,184
80,873
82,037
81,859

185
250
502
694
1,397
953

1,044
1,186
1,352
1,714
2,580
2,999

68,868

70,790

8

2,204
1,032
982
1,138

1,122

2,956
3*239
4*322
4 ’,629
5*396
6,810
6,841
7,145
7,611
8,293

8 ,668

W eek ending—
1974— A pr.

3.......................
10 .......................
17.......................
24.......................

81,330
80,675
81,606
81,689

80,483
80,485
80,651
80,996

847
190
955
693

1,503
1,194
1,816
1,939

1,801
2,039
2,646
2,503

1,060
1,104
1,134
1,191

85,923
85,111
87,332
87,526

11,567
11,567
11,567
11,567

400
400
400
400

8,789
8,800
8,803
8,812

M ay

1.......................
8 .......................
15.......................
2 2 .......................
29.......................

82,731
83,190
83,626
83,679
83,162

81,637
81,868
81,951
81,756
82,418

1,094
1,322
1,675
1,923
744

2,157
1,616
1,977
3,090
3,606

1,919
1,807
1,908
2,238
1,905

1,292
1,336
1,248
879
900

88,365
88,238
89,065
90,227
89,737

11,567
11,567
11,567
11,567
11,567

400
400
400
400
400

8,822
8,827
8,830
8,836
8,856

June

5 .......................
12 .......................
19*>.....................
26p .....................

83,075
81,267
83,017
83,815

82,128
80,814
82,283
82,049

947
453
734
1,766

3,054
2,729
3,223
2,788

2,184
2,007
2,165
2,055

1,013
1,036
1,095
1,160

89,554
87,184
89,723
90,068

11,567
11,567
11,567
11,567

400
400
400
400

8,859
8,862
8,880
8,891

82,661
84,658
83,612

8 81,749
8 82,777
8 82,646

912
1,881
966

1,747
3,298
3,209

1,736
1,925
1,835

1,313
1,015
1,264

87,673
91,269
90,224

11,567
11,567
11,567

400
400
400

8,844
8,895
8,892

3.......................
10 .......................
17.......................
24.......................

80,483
80,478
81,195
81,489

8
8
8
8

80,483
80,478
80,682
80,933

513
556

1,116
1,286
1,284
2,171

2,632
2,549
2,637
2,649

1,053
1,106
1,283
1,229

85,358
85,492
86,494
87,737

11,567
11,567
11,567
11,567

400
400
400
400

8,797
8,801
8,803
8,821

1.......................
8 .......................
15.......................
2 2 .......................
29.......................

82,425
83,125
83,670
81,473
85,253

8 81,649
8 81,916
8 82,088

776
1,209
1,582
1,633
2,782

1,869
1,923
3,500
2,980
4,711

2,955
2,380
2,714
2,131
2,165

1,395
1,330
831
946
923

88,848
89,023
91,055
87,787
93,402

11,567
11,567
11,567
11,567
11,567

400
400
400
400
400

8,826
8,829
8,832
8,853
8,856

5.......................

79,659
82,989
82,283
83,555

2,710
3,157
2,486
2,979

2,847
2,271
2,728
2,405

1,078
1,090
1,134
1,196

86,394
89,903
88,726
90,392

11,567
11,567
11,567
11,567

400
400
400
400

8,860
8,865

End of month
A p r ...............................
M a y .............................
June*>...........................
Wednesday
1974— A pr.

M ay

June

12 .......................

19 p .....................
26p .....................

9 79,840
8 82,471
9 79,659

9 80,764
8 82,283
8 81,976

2,225
1,579

1 Includes Federal agency issues held under repurchase agreements as
o f Dec. 1, 1966, and Federal agency issues bought outright as o f Sept. 29,
1971.
2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961
B u lle t i n , p. 164.
3 Beginning A p r. 16, 1969, “ Other F .R . assets” and “ Other F .R .
liabilities and capital” are shown separately; form erly, they were
netted together and reported as “ Other F .R . accounts.”
4 Includes industrial loans and acceptances until Aug. 21, 1959, when




8 ,8 8 6

8,892

industrial loan program was discontinued. For holdings o f acceptances
on Wed. and end-of-month dates, see table on F.R . Banks on p. A-12.
See also note 2.
5
Includes certain deposits o f domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in
full with Federal Reserve Banks in connection with voluntary participa­
tion by nonmember institutions in the Federal Reserve System’s program
o f credit restraint.

Notes continued on opposite page.

JU L Y 1974 □ BANK RESERVES AND RELATED ITEM S

A 5

MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued
(In millions o f dollars)

Factors absorbing reserve funds
Deposits, other
than member bank
reserves,
with F.R. Banks

Cur­
rency
in
cir­
cula­
tion

Treas­
ury
cash
hold­
ings

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

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

616
592
625
615
522

50,609
53,591
57,013
61,060
66,060

756
656
427
453
350

67,609
68,382
68,394
68,592
68,909
69,927
71,646

Treas­
ury

For­
eign

Other
F.R.
ac­
counts 3

Other 2,5

Other
F.R.
lia­
bilities
and
capital 3

IVlember ban k
reserves

With
F.R.
Banks

Cur­
rency
and
coin 6

Period or date

Total 7

Averages of daily figures
72\9
1,531
1,247
920
250

353
495

360
1,194
849
1.926
1,449

225
146
145
290
272

458
458
735
728
631

386
346
344
349
622
340
323

2,408
3,375
1,674
792
1,718
1,772
1,892

266
341
300
332
266
522
406

698
782
838
781
5 752
5 689
5 717

70,962
70,411
71,081
72,176
72,876
73,749

349
342
334
308
286
293

2,488
2,972
1,803
1,712
3,000
2,015

427
293
311
328
320
491

5
5
5
5
5
5

71,366
72,008
72,616
72,308

340
326
303
288

1,889
1,354
1,299
1,666

372
300
439
269

5
5
5
5

72,048
72,463
72,997
72,959
73,062

301
299
285
278
273

2,460
2,959
2,723
3,028
3,224

343
294
277
343
287

73,344
73,846
73,938
73,689

302
283
292
298

2,804
931
1,511
2,659

72,233
73,199
73,786

298
296
290

71,762
72,633
72,723
72,310

2,595

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

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

4,737
4,960
5,340
5,676
6,095

27,221
28,031
29,265
31,329
31,353

..............................1968—Dec.
..............................1969— Dec.
..............................1970— Dec.
..............................1971—Dec.
............................. 1972—Dec.

6,086
'6,273
6,296
6,402
6,371
'6,382
6,635

'32,029
'33,590
'33,783
'34,020
'34,913
'34,725
35,068

............................. 1973—June
.......................................... July
..........................................Aug.

2,854
2,942

r25,777
'27,205
r2 7 ,375
*•27,510
'28,458
r28,259
28,352

713
682
699
702
699
691

2,904
2,932
2,998
2,985
3,168
3,187

29,396
28,574
28,450
29,469
29,861
29,574

7,192
6,601
6,450
6,402
6,600

............................. 1974—Jan.
.......................................... Feb.

6,668

36,655
35,242
34,966
35,929
36,519
36,292

704
725
695
703

3,105
2,854
3,010
2,997

28,904
28,311
29,741
30,074

6,481
6,633
6,457
5,923

35,443
35,002
36,256
36,055

....................... 1974—Apr. 3
............................................... 10
............................................... 17
............................................... 24

5 672
5 715
5 728
5 684

3,132
2,961
3,122
3,218
3,310

30,198
29,393
29,743
30,477
29,719

6,589
6,885
6,845
6,081
6,572

36,845
36,336
36,646
36,616
36,349

............................................... 8
...............................................15
................................................22
............................................... 29

399
309
992
343

5
5
5
5

694
674
674
687

3,275
3,041
3,140
3,265

29,562
28,929
30,022
29,985

6,659
6,802
6,641
6,486

36,279
35,789
36,721
36,529

............................................... 12
............................................... \9 V
............................................... 26^

2,813
3,133
2,919

517
429
384

5 697
5 667
5 762

3,129
3,395
3,319

28,795
31,012
29,623

6,589
6,661
6,812

35,442
37,731
36,435

340
313
293
287

2,426
1,277
902
2,425

264
339
368
279

5
5
5
5

748
758
670
700

2,757
2,918
2,896
3,026

27,825
28,021
29,411
29,498

6,481
6,633
6,457
5,923

34,364
34,712
35,926
35,479

....................... 1974—Apr. 3
............................................... 10
...............................................17
...............................................24

72,329
72,975
73,204
73,099
73,488

300
305
296
292
269

2,948
2,993
2,569
4,332
2,333

544
254
358
265
315

5
5
5
5
5

705
689
749
761
642

3,180
3,009
3,131
3,244
3,644

29,634
29,594
31,547
26,614
33,534

6,589
6,885
6,845
6,081
6,572

36,281
36,537
38,450
32,753
40,164

............................................... 8
...............................................15
............................................... 22
...............................................29

73,740
74,166
73,991
73,932

300
296
308
303

1,340
906
2,946
2,693

330
359
753
282

5
5
5
5

683
650
695
699

2,931
3,101
3,141
3,286

27,896
31,257
27,744
30,055

6,659
6,802
6,641
6,486

34,613
38,117
34,443
36,599

............................................... 12
...............................................19^
.................................. ............26?

248
292
493
739
1,029

11,473
12,812
16,027
17,391
16,688

- 1 ,1 0 5

22,484
23,071
23,925
25,653
24,830

2,192
2,265
2,287
2,362
2,732
2,846
2,877
2,848
2,866

Week ending—

5 662

End of Month

Wednesday

6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning with Jan. 1963, figures are estimated except for
weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date.
7 Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week o f quarter): Q l, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning




1974 Q l, t 67 million Q2, $58 million, transition period ended after second
quarter, 1974.
8 Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks.
9 Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks. Also reflects securities sold, and scheduled to
be bought back, under matched sale/purchase transactions.
For other notes see opposite page.




AND RELATED ITEMS □ JU L Y 1974
RESERVES AND BORROWINGS OF MEMBER BANKS
(In millions o f dollars)
All member banks
Reserves

Large banks2

Borrowings

New York City

City o f Chicago

Other

Re­
quired

Excess 1

6,462
9,422
14,536
16,364

5,011
3,390
1,491
1,027

3
5
334
142

2,611
989
48
125

18,527
22,267
24,915
26,766
27.774
28,993
31,164
31,134

756
452
345
455
257
272
165
219

87
454
238
765
1,086
321
107
1.049

29
41
18

31,970
33,199
33,540
33.775
34,690
34,543
34,806

59
391
243
245
223
182
262

1,788
2.050
2,144
1,861
1,465
1.399

77
124
163
147
126
84
41

36,419
35,053
34,790
35,771
36,325
36,257

236
189
176
158
194
35

1,044
1,186
1,352
1,714
2,580
2,999

18
17
32
50

31,819
31,595
32,132
32,000

344

34,468
34,472
34,892
34,958
35,268
36,210
37,374
36,693
35,880

328
-8 3
259

35,351
35.054
35,274
34,645

124
294
114
206

998
1,153
1,376
1,251

20

34,515
34,632
35,129
34,605

118
116
80
169

912
983
1,483
1,713

19
19
35
43

-8 1
41
-4 1
10

333
31

35,217
34,940
35,927
35,916

226
62
329
139

1.503
1' 194
1,816
1,939

44
41
46
52

77
-7 3
78

34
108
107
69

-9
4
-1 9
70

36,668
36,201
36,470
36,487
26,170

177
135
176
129
179

2,157
1,616
1,977
3,090
3,606

74
82
94

176
134
506
993
1,449

-4 7
41
-3 9
57
-1 7

17
14
37
7
9

-6 3
-9

114

62
-5 7
83
-5 5
32

-1 0

824
646
703
959
,067

36.054
35,658
36,463
36,425

225
131
258
104

3,054
2,729
3,223
2,788

131
136
142
133

-3 7
26
38
13

1,2 10

2
21

15
40
139
17

61
-6 7
32
-7 9

983
764
715
860

Total

i;298

Sea­
sonal

Excess

100

56
34
25
-2 0

-6 1
156
34
-6
11

27
-2 3
65
51
21

19

102

-2 0

135

-4 5

220

1,664
1,700
1,928
1,849

64
67
71
93

62
-7 8
92
-4 1

438
-2 8
311
472

1,478
1,303
1,488
1,039

57
45
40
35

167
-1 3 9
137
106

388

1,210

31
19

80

13
17

59
-1 1 4
104

2

144

86

776
988
1,182

1,220

20

18
15

16

112

Nov. 15, 1972, includes $450 million of
L Banks are allowed to waive penalties
on with bank adaptation to Regulation J
I. Beginning 1973, allowable deficiencies
: statement week o f quarter): Q1, $279
12 million; Q4 million. Beginning 1974
i , transition period ended after second
gnation o f banks as reserve city banks
has been based on size o f bank (net
♦00 million), as described in the Bulletin

2

-1 2 3
144
-3 7
70

-1 2

Borrow­
ings

192
58
19
111

40
230
259
25
35
301

Excess

Borrow­
ings

Excess

rowigs

5

1,188
1,303
418
232

3
4
46
29

8

100

40
92
80
180
321
28
42
264

540
295
14
8

4
15
15
18
7

23
13
85
27
4

1

8

13

55

-5
30

28
67
53
62
54
28

8

145
135
109
115
74
180
74

-2 4
43

135
87
113
114
772
1,302

-4 4
-1 9
-6 1
69
29
-3 9

17
18
65
41

34

47
18
9

200

31
262
107

-8

24
1

-1

-2 4
-7

28

67
50
90

6

42
-3 5
-4 2
-7 9
-2
8

40
17
-2 0

28
-8

20

-5 1
43
-5 8
-4

51

-2 2

44

711
993
,227
972
748
598
435
343
446
485
572
849
847

-1 3 2
53

728
698
693
714

-10 2

163

15
-2 3
29
30

11
11

29
-3 7
+ 34
81

578
421
488
363

140
271
45
183

-6

-4 7
16

141
44

24
-9 6
27

20

-5 7

15

330
287
262
344
467

92
257

14
-2 3
-6 3
-1 7

56

34
-3 4
-4 2
-2 4

504
420
408
458

123

13

11
66

1

414
399
456
600

189
53

-2 7

101

37

570
370
515
633

102

11

1,296
1,385
1,221

-1 2

-8

-3
40

-3 7
19

-1 1 0

13

15

21

4

-8 2
-3 6
-1 6

6

-1 2

-3 4
10

for July 1972, p. 626. Categories shown here
parallel the previous “Reserve city” and “Coi
(hence the series are continuous over time).

ther”
tively

N o t e .— Monthly and weekly data are av<
the month or week, respectively. Beginning
estimated except for weekly averages.
Borrowings at F.R. Banks: Based on closir
Effective Apr. 19, 1963, the Board’s Regul
ing by Federal Reserve Banks, was revised tc
to meet the seasonal borrowing needs of the

/ithin
s are
lend-

JU L Y 1974 o MAJOR RESERVE C ITY BANKS

A 7

BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions o f dollars, except as noted)
Basic reserve position
Less—
Reporting banks
and
week ending—

Excess
re­
serves 1

Bor­
rowings
at F.R.
Banks

Gross transactions

N e t-

Net
inter­
bank
Federal
funds
trans.

Related transactions with
U.S. Govt, securities dealers

Interbank Federal funds transactions

Per cent
of
Surplus
avg.
or
deficit required
reserves

Pur­
chases

Sales

Net transactions
Total
two-way
trans­
actions 2

Pur­
chases
o f net
buying
banks

Loans
to
dealers 3

Sales
o f net
selling
banks

Bor­
row­
ings
from
dealers 4

Net
loans

Total—46 banks

1974—May

June

7,054
6,702
6,040
5,412
6,881

5,704
5,820
5,659
5,259
6,016

13,527
13,090
13,123
11,962
11,375

1,350
882
380
152
865

1,467
1,386
1,316

6 8 .1

19,231
18,909
18,783
17,221
17,391

-1 2 ,8 8 2
-1 5 ,3 8 4
-1 4 ,7 4 9
-1 3 ,7 4 1

78.3
94.6
87,7
82,9

18,938
20,960
20,238
19,669

6,428
5,773
6,258
6,205

5,482
5,168
5,790
5,344

13,455
15,792
14,448
14,326

946
606
468
861

2 ,22 0

- 2 ,9 6 7
-3 ,4 2 3
- 4 ,0 0 2
-2 ,8 5 8
-2 ,4 4 7

44 .2
52,1
59.2
42.3
37.7

5,161
5,481
5,408
4,268
4,524

2,224
2,177
1,467
1,415
2,327

1,717
1,761
1,369
1,403
1,716

3,444
3,720
4,039
2,865
2,808

507
416
98

277

2,938
3,304
3,940
2,853
2,197

43
238
31

3,513
5,017
4,600
4,395

-3 ,5 2 1
-5 ,0 5 2
-4 ,8 0 3
-4 ,3 9 4

52,9
77.8
69,8
65,9

5,231
6,416
6,215
6,257

1,718
1,399
1,615
1,862

1,296
1,105
1,521
1,551

9,239
8,904
8,802
8,956
8,314

- 9 ,7 1 2
-9 ,1 0 2
-9 ,0 9 1
-9 .3 2 9
—8 ;7 ii

99 .2
93.9
92.2
94.8

14,070
13,429
13,375
12,953

8 8 .2

12,868

4,830
4.525
4,573
3,997
4,554

8,997 -9 ,3 6 1
10,170 -1 0 ,3 3 3
9,381 -9 ,9 4 6
9,070 -9 ,3 4 7

95.6
105.8
94.3

13,707
14,544
14,023
13,412

14

3,521
3,751
3,800
3,661
3,156

-3 ,5 4 1
-3 ,7 2 2
-3 ,8 2 8
-3 ,6 1 8
-3 ,1 3 8

199.3
214.5
215.6
204.5
177.3

29
129

3,861
4,267
3,934
3,815

-3 ,8 5 9
-4 ,2 8 4
-4 ,0 7 6
- 3,793

471
268
294
473
434

5,718
5,153
5,002
5,296
5,518

423
157
460
311

5,135
5,904
5,448
5,255

1.........
8 .........
15.........
22.........
29.........

77
42
80
95
64

579
360
429
473
711

12,177
12,208
12,742
11,809
10,511

-1 2 ,6 7 9
-1 2 ,5 2 5
-1 3 ,0 9 2
-1 2 ,1 8 7
-1 1 ,1 5 7

76.8
77.0
78.8
73.5

5 ..........
12..........
19..........
26..........

50
31
59

423
228
827
343

12,509
15,187
13,981
13,465

1..........
8 ..........
15..........
22..........
29..........

78
-2 7
60
-5
27

107
92
121

5 ..........
12..........
19..........
26..........

-8
8

66

562
591
639
742
802

906
795
678
1,146
993

3,271
2,088
1,806

798
948
751
1,579

1,422
2,322
1,337
227

611

783
593
521
778
803

310
348
360
385
390

473
245
161
393
413

3,935
5,311
4,694
4,706

422
295
95
312

1,137
1,463
1,017
702

402
458
458
499

734
1,005
559
203

3,987
4,059
4,291
3,857
4,300

10,083
9,370
9,084
9,097
8,567

844
466
282
140
254

685
792
795
991

252
243
278
357
411

432
550
517
753
580

4,710
4,374
4,642
4,342

4,187
4,063
4,269
3,793

9,520
10,481
9,754
9,619

523
311
373
549

1,083
1,807
1,071
1,105

395
490
294
1,081

1,317
778
24

4,406
4,811
4,778
4,598
4,291

885
1,060
978
937
1,135

885
1,053
978
937
1,045

3,521
3,758
3,800
3,661
3,247

212.3
242.3
223.1
206.9

4,927
5,131
4,886
4,810

1,066
864
952
996

1,005
864
946
996

3,923
4,267
3,939
3,815

61

-6 ,1 7 1
- 5 ,3 8 0
-5 ,2 6 3
-5 ,7 1 1
- 5 ,5 7 2

77.0
67.6
65.1
70.7
68.7

9,663
8,618
8,597
8,356
8,576

3,945
3,465
3,595
3,060
3,418

3,102
3,006
3,313
2,920
3,255

- 5 ,5 0 2
-6 ,0 4 9
5,869
- 5 ,5 5 4

69.0
75.6
72.3
68.7

8,779
9,414
9,138
8,602

3,644
3,510
3,690
3,347

3,182
3,200
3,323
2,798

1,888

1,794

8 in New York City

1974—May

June

35
32

12

38 outside
New York City

1974—May

1..........

29.

37

5.

59
23
24
34

423
185
589
311

22.
June

— 1

471
268
308
473
434

15.

12.
19.
26.

69
19
100

100.1

1 ,1 1 0

688

5 in City o f Chicago
1974—May

1 ...........

29.

29
-1 3
43
18

5.

3

15.

22.
June

-2 0

12.
19.
26.

12

-1 4

21

320
334
324
427
350

320
334
324
427
350

6

357
465
364
402

357
465
364
402

6,561
5,612
5,284
5,436
5,231

844
459
282
140
164

365
458
472
683
641

252
243
278
357
411

215
193
326
230

5,597
6,214
5,815
5,805

462
311
368
549

727
1,343
707
702

395
490
294
1,081

331
852
413
-3 7 8

7
90

33 others

1974—May

1. ..
8 .. .
1 5 ...
2 2 ...
2 9 ...

19
40
33
57

June

5 ...
1 2 ...
1 9 ...
2 6 ...

56

20
11

38
13

1 Based upon reserve balances, including all adjustments applicable to
the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies,
if any, were deducted. Excess reserves for later periods are net o f all carry­
over reserves.
2 Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank’s weekly average pur­
chases and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing




112

banks, repurchase agreements (purchases o f securities from dealers
subject to resale), or other lending arrangements.
4 Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
N o t e .—Weekly averages o f daily figures. For description o f series
and back data, see Aug. 1964 B u l l e t in , pp. 944-74.

A 8

F.R. BANK IN TER ES T RATES □ JU L Y 1974
C U R R E N T RATES
(P er cen t per annu m )
L o a n s to m em b er b a n k s—
L o a n s to all o th e rs und er
la st par. Sec. 1 3 3

U n d er Sec. 10(b)- 2

U n d e r Secs. 13 an d 13a 1
F ederal R eserv e B an k
R a te o n
June 30,
1974

N e w Y o r k ...................................................
P h ila d e lp h ia ...............................................
C le v e la n d ....................................................
R ic h m o n d ....................................................
A t la n ta .........................................................
C h ic a g o .........................................................
St. L o u is .......................................................
M in n e a p o lis ...............................................
K a n sa s C i t y ...............................................
San F r a n c is c o ...........................................

E ffective
d ate

P rev io u s
rate

R a te o n
J une 30,
1974

E ffectiv e
d a te

P rev io u s
rate

R a te o n
Ju n e 30,
1 974

E ffective
d ate

P rev io u s
rate

8
8
8
8
8
8

A p r.
A p r.
A p r.
A p r.
A p r.
A p r.

30,
25,
25,
25,
25,
29,

1974
1974
1974
1974
1974
1974

71/2
71/2
71/2
71/2
71/2
71/2

81/2
81/2
8 i/ 2
81/2
81/2
81/2

A p r.
A p r.
A p r.
A p r.
A p r.
A p r.

30,
25,
25,
25,
25,
29,

1974
1974
1974
1974
1974
1974

8
8
8
8
8
8

4 10
10
10
10
4 10
4 10

A p r.
A p r.
A p r.
A p r.
A p r.
A p r.

30,
25,
25,
25,
25,
29,

1974
1974
1974
1974
1974
1974

91/2
91/2
91/2
91/2
91/2
91/2

8
8
8
8
8
8

A p r.
A p r.
A p r.
A p r.
Apr.
A p r.

26,
26,
26,
25,
25,
25,

1974
1974
1974
1974
1974
1974

71/2
71/2
71/2
71/2
71/2
71/2

81/2
81/2
81/2
81/2
81/2
8 1/2

A p r.
A p r.
A p r.
A p r.
A p r.
A p r.

26,
26,
26,
25,
25,
25,

1974
1974
1974
1974
1974
1974

8
8
8
8
8
8

4
4
4
4
4

A p r.
A p r.
A p r.
A p r.
A p r.
A p r.

26,
26,
26,
25,
25,
25,

1974
1974
1974
1974
1974
1974

91/2
91/2
91/2
91/2
91/2
91/2

1 D is c o u n ts o f e ligib le pap er an d a d v a n ces secu red by su ch p aper or by
U .S . G o v t, o b lig a tio n s or an y o th er o b lig a tio n s elig ib le for F .R . B ank
p u rch ase. M a x im u m m a tu rity : 9 0 d a y s ex c ep t th at d isco u n ts o f certain
b an k ers’ a ccep ta n ces and o f agricu ltu ral p ap er m ay h a v e m atu rities n o t
ov er 6 m o n th s and 9 m o n th s, resp ectiv ely .
2 A d v a n ces secu red to the sa tisfa ctio n o f the F .R . B an k.
M a x im u m
m atu rity: 4 m o n th s.
3 A d v a n c es to in d iv id u a ls, partn ersh ip s, or c o rp o ra tio n s oth er th a n
m em b er bank s secu red by d irect o b lig a tio n s of, or o b lig a tio n s fully

10
10
10
10
10
10

gu aran teed as to prin cip al and in terest by, th e U .S . G o v t, or an y
a g en cy th ereo f. M a x im u m m atu rity: 9 0 d a y s.
4
A lso effectiv e o n th e sa m e d ates as th e o th e r rates sh o w n a b o v e for
th e eigh t R eserv e B an k s so d esig n a ted , a rate o f 8 p e r c en t w as ap p roved
o n a d v a n ces to n o n m e m b er b a n k s, to b e a p p lica b le in sp ecial circu m sta n ces
resu ltin g fro m im p le m e n ta tio n o f c h a n g e s in R e g u la tio n J, w h ich b eca m e
effective o n N o v . 9 , 1972. S ee “ A n n o u n c e m e n ts” o n p. 9 4 2 o f th e O ct.
1972 B u lletin an d p. 9 9 4 o f th e N o v . 1972 B u l l e t in .

SUM M ARY O F EARLIER C H A N G ES
(P er cen t per an n u m )

E ffective
d a te

R ange
(or lev el)—
A ll F .R .
B an k s

F .R .
B an k
of
N .Y .

In effect D e c . 31, 1 9 5 4 ..........

U/2

IV i

1955— A p r. 1 4 .........................
1 5 .........................
M ay
2 .........................
A u g . 4 .........................
5 .........................
1 2 .........................
S ep t. 9 .........................
1 3 .........................
N o v . 1 8 .........................
2 3 .........................

U / 2 - l 3/4
11/2-13/4
IV4
l 3/4 —21/4
134-21/4
2 - 21/4
2 - 21/4
21/4
2 i4 -2 i/2
2 i/2

U/2
l 3/4
l 3/4
m
2
2
21/4
2V4
21/2
21/2

21/2-3
23/4- 3
23/4-3
3

23/4
23/4
3
3

E ffec tiv e
d a te

1 9 5 9 — M ar.

3 1 .........................
9 .........................
2 3 .........................
N o v . 1 5 .........................

1958— Jan.

2 2 .........................
2 4 .........................
M ar. 7 .........................
1 3 .........................
2 1 ..........................
M ay

9 .........................

S ep t. 1 2 .........................
2 3 .........................
O ct. 2 4 ..........................
N o v . 7 ..........................

- 31/2
31/2
3 - 31/2
3

3
31/2
3
3

23/4-3
23/4-3
21/4 -3
21/4-23/4
21/4
1 3/4-21/4
l 3/4
1 3/ 4 -2
l 3/ 4 -2
2
2 - 21/2
21/2

3
23/4
21/4
21/4
21/4
l 3/4
l 3/4
1%
2
2
2
21/2

3

1960— June
A u g.
S ep t.

3 .........................
1 0 .........................
1 4 .........................

3
3

3

-31/2

31/2
31/2-4
31/2-4
31/2-4
31/2
3

9 .........................
1 7 .........................
2 6 .........................

3

6 .........................

4

- 31/2
3
- 31/2

31/2

31/2-4

1964— N o v .

4
- 41/2

41/2
1967— A p r.

7 .........................

- 41/2

4
4

- 41/2

4

N ov.

41/2
41/2-5

1968— M ar.

5
A pr.

5

A u g.
D ec.

1 8 .........................

1969— A p r.

4 .........................
8 .........................

1970— N o v . 1 1 .........................
1 3 .........................

N ote .— R a te s u n d er S ecs. 13 and 13a (as describ ed in ta b le and n o te s
a b o v e ). F o r d a ta b efo re 1955, se e B a n k in g a n d M o n e ta r y S ta tis tic s , 1943,
p p. 4 3 9 - 4 2 , and S u p p lem en t to S e c tio n 12, p. 31.




21/2-3

4

1965— D e c .
195 7 — A u g.

F .R .
B ank
of
N .Y .

3
M ay 2 9 .........................
June 1 2 .........................
Sept. 1 1 .........................

1963— July
2 0 .........................

6 .........................

R ange
(o r lev e l)—
A ll F .R .
Banks

-51/2

51/2
51/4-51/2
51/4
51/4-51/2
51/2
51/2-6
6
5 % -6
5 U -6
5Va

31/2
31/2
4
4
4

31/2

31/2
3
3

31/2
31/2
4
4
41/2
41/2
4
4
41/2
41/2
41/2
5
51/2
51/2
51/2
51/4
51/2
51/2

6
6
6
5V4
5 3/4

E ffec tiv e
d a te

Range
(o r lev el)—
A ll F .R .
B anks

F .R .
B an k
of
N .Y .

1 .........................
4 ..........................
1 1 .........................

51/2-53/4
51/2-53/4
51/2

5 3/4
51/2
51/2

8 .........................
1 5 ....................... ..
1 9 ..........................
2 2 ..........................
2 9 ..........................
F eb. 1 3 .........................
1 9 .........................
July 1 6 .........................
2 3 .........................
N o v . 1 1 .........................
1 9 .........................
D e c . 1 3 .........................

51/4-51/2
51/4
5 -51,4
5 - 51/4
5
43/4-5
434
43/4 - 5
5
43,4-5
43/4
41/2-43/4
41/ 2 -4 3y4
41/2

51/4
51/4
51/4
5
5
5
43^
5
5
5
434
434
41/2
41/2

1970— D e c .

1971— Jan.

1973— Jan. 1 5 .........................
F eb . 2 6 .........................
M ar. 2 .........................
A p r. 2 3 .........................
4 .........................
M ay
1 1 .........................
1 8 .........................
June 1 1 .........................
1 5 .........................
2 .........................
July
A u g . 1 4 .........................
2 3 ........................
1974— A p r.

2 5 .........................
3 0 ........................

In effect J u n e 30, 1 9 7 4 . . . .

5
- 51/2
51/2
51/2-53/4
53/4
53/4-6
6
6 - 61/2
61/2
7
7 - 71/2
71/2

5
51/2
51/2
51/2
53/4
6
6
61/2
6 j/ 2
7
71/2
71/2

71/ 2 -8
8

8
8

5

8

8

JULY 1974 □ RESERVE REQUIREM ENTS

A 9

RESERVE R E Q U IR E M E N T S ON D E PO SIT S OF M E M B ER BAN KS
( D e p o s it intervals are in m illio n s o f do lla rs. R eq u irem en ts are in p er cen t o f d e p o sits.)
T im e 3
(all c la sse s o f
b a n k s)

N e t d em a n d 2
E ffective
d ate 1

R e se r v e city
O ver
5

0 -5
In effect
Jan. 1, 1 9 6 3 .
1966— July 14, 21 . . .
S ept. 8, 15 . . .
1967— M ar. 2 ............
M ar. 1 6 ............
1968— Jan. 11, 1 8 . . .
1969— A p r. 1 7 .............
1970— O ct. 1 ................

O th er

161/2

17

171/2

12
121/2

E ffective
d ate

O th er tim e

O th er tim e

0-2

Sav­
ings
0 -5

12

161/z

17

O ver
5

0 -5

N e t d em a n d 2,4

31/2

31/2

3

3

2-10 10-100

1 0 0 -4 0 0

O ver
5

Sav­
ings

O ver
5 6

0 -5
1972— N o v . 9 . .
N o v . 16.

10

1 97 3 —July 1 9 . .

IOI/2 121/2

131/2

18

In effect
June 30, 1974

Id /2 121/2

131/2

18

121/2

12

7 161/2

83

17i/2

13

13
P resent leg a l lim it s :
N e t d em a n d d e p o sits, reserve c ity b a n k s .
N e t d em a n d d e p o sits, o th e r b a n k s ...........
T im e d e p o s its .......................................................

1 W h e n tw o d ates are sh o w n , th e first a p p lies to th e ch a n g e at reserve
c ity ban k s and th e se co n d to th e ch a n g e at co u n tr y b ank s. F o r c h a n g es
p rior to 1963 see B o a r d ’s A n nual R e p o rts.
2 (a) D e m a n d d e p o sits su b ject to reserve req u irem en ts are g ro ss d e ­
m and d e p o sits m in u s c a sh item s in p r o c e ss o f c o lle c tio n and d em a n d
balan ces d u e from d o m e stic b ank s.
(b) R eq u irem en t sch ed u les are g ra d u a ted , and ea c h d e p o sit in terval
a p p lie s to that part o f th e d e p o sits o f e a c h bank .
(c) S in ce O ct. 16, 1969, m em b e r b a n k s h a v e b een required un d er
R e g u la tio n M to m a in ta in reserves a g a in st fo reig n b ra n ch d e p o sits
co m p u te d o n th e b asis o f n et b a la n c e s d u e fro m d o m e stic o ffices to their
foreign b ra n ch es an d aga in st fo re ig n b ra n ch lo a n s to U .S . resid en ts.
S in ce June 2 1 , 1973, lo a n s agg reg a tin g $ 1 0 0 ,0 0 0 o r less to an y U .S . resid en t
h a v e b een exc lu d ed from c o m p u ta tio n s , as h a v e to ta l lo a n s o f a b a n k to
U .S . resid en ts if n o t ex c ee d in g $1 m illio n . R e g u la tio n D im p o se s a sim ila r
reserve req u irem en t o n b o r r o w in g s fro m fo re ig n b a n k s by d o m e stic o ffices
o f a m em b e r b ank . T h e reserve p ercen ta g e a p p lic a b le to ea ch o f th ese
c la ssific a tio n s is 8 per cen t. T h e req u irem en t w a s 10 per cent o r ig in a lly ,
w as increased to 20 per ce n t o n Jan. 7 ,1 9 7 1 , and w a s reduced to th e current
8 per c e n t effectiv e June 2 1 , 1973. In itia lly certa in b a se a m o u n ts w ere
e x e m p te d in th e c o m p u ta tio n o f th e req u irem en ts, but e ffectiv e M ar. 14,
1974, th e last o f th e se reserve-free b a se s w ere elim in a ted . F o r d e ta ils, see
R e g u la tio n s D and M .
3 E ffective Jan. 5, 1967, tim e d e p o sits su ch as C h ristm as and v a c a tio n
c lu b a c c o u n ts b e c a m e su b ject to sa m e req u irem en ts as sa v in g s d e p o sits.
F o r o th e r n o te s se e 2(b) and 2 (c) a b o v e.
4 E ffective N o v . 9, 1972, a n ew criterio n w as a d o p te d to d e sig n a te re­
serve c ities, an d o n th e sa m e d a te req u irem en ts fo r reserves a g a in st net
d em an d d e p o sits o f m em b er b a n k s w ere restructured to p r o v id e th a t ea ch
m em b er ban k w ill m ain tain reserves related to th e size o f its n et d em a n d
d e p o sits. T h e n ew reserve c ity d e sig n a tio n s are as f o llo w s : A b a n k h a v in g
n et d em an d d e p o sits o f m ore th a n $ 4 0 0 m illio n is c o n sid ered to h a v e the
character o f b u sin ess o f a reserve c ity b a n k , and th e p resen ce o f th e h ead




O ver
400 5

M in im u m

M a x im u m

10

22

7
3

10

14

office o f su ch a b a n k c o n stitu te s d e sig n a tio n o f th a t p la ce as a reserve
city . C ities in w h ich there are F .R . B a n k s o r branches are a lso
reserve c ities. A n y b a n k s h a v in g n et d em a n d d e p o sits o f $ 4 0 0 m illio n or
less are c o n sid er e d to h a v e th e chara cter o f b u sin ess o f b a n k s o u ts id e o f
reserve cities an d are perm itted to m a in ta in reserves at r a tio s set fo r b a n k s
n o t in reserv e c ities. F o r d e ta ils, see R e g u la tio n D an d a p p r o p r ia te s u p ­
p lem en ts an d a m en d m e n ts.
5 R eserv e city b a n k s.
6 E x cep t as n o te d b e lo w , e ffectiv e D e c . 2 7, 1973, m em b e r b a n k s are
su b ject to an 8 per cen t m a rg in a l reserv e req u irem en t a g a in st in crea ses
in th e aggreg a te o f (a) o u tsta n d in g tim e d e p o sits o f $ 1 0 0 ,0 0 0 o r m o re,
(b) o u tsta n d in g fu n d s o b ta in ed by th e b a n k th ro u g h issu a n ce b y a b a n k ’s
affiliate o f o b lig a tio n s su b ject to th e ex istin g reserve req u irem en ts o n tim e
d e p o sits, and (c) fu n d s fro m sa les o f fin a n ce b ills. T h e 8 per c e n t req u ire­
m en t ap p lies to b a la n ces a b o v e a sp ecified b a se, b u t is n o t a p p lic a b le to
b a n k s that h a v e o b lig a tio n s o f th ese ty p es aggreg a tin g less th a n $1 0 m illio n .
F o r th e p erio d June 21 th r o u g h A u g . 2 9 , 1973, (a) in clu d ed o n ly sin g le ­
m a tu rity tim e d e p o sits. P r e v io u s req u irem en ts ha v e b een: 8 per cen t for
(a) and (b) from June 21 th r o u g h O ct. 3, 1973, and fo r (c) fro m July 12
th ro u g h O ct. 3, 1973; and 11 per cen t fro m O ct. 4 th r o u g h D e c . 2 6 , 1973.
F o r d eta ils, see R e g u la tio n D and a p p ro p ria te su p p lem en ts and a m en d ­
m en ts.
7 T h e 161/4 per cen t req u irem en t a p p lied fo r o n e w eek , o n ly to fo rm er
reserve city b ank s. F o r o th e r b ank s, th e 13 per ce n t req u irem en t w as
c o n tin u ed in th is d e p o sit interval.
8 See preced in g c o lu m n s fo r ea rliest effectiv e date o f th is rate.
N o t e .— A ll required reserves w ere h eld o n d e p o sit w ith F .R . B an ks
June 21, 1917, u n til D e c . 1959. F ro m D e c . 1959 to N o v . 1960, m em ber
b a n k s w ere a llo w ed to c o u n t part o f th eir curren cy and c o in as r e se r v e s;
e ffective N o v . 24, 1960, th ey w ere a llo w ed to c o u n t all as reserves. F o r
further d eta ils, see B o a r d ’s A n nual R e p o rts.

A 10

M AXIM UM IN TER ES T RATES; MARGIN REQ UIREM ENTS □ JU L Y 1974
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
Rates beginning July 1, 1973

Rates July 20, 1966—June 30, 1973

Effective date

Effective date
Type o f deposit

Type of deposit

July 20,
1966

Savings deposits.............
Other time deposits: 1
Multiple maturity:2
30-89 days..........
90 days to 1 year.
1 year to 2 years. ,
2 years or more...
Single-maturity:
Less than $100,000:
30 days to 1 year.
1 year to 2 years..
2 years and over. .
$100,000 or more:
30-59 days..........
60-89 days..........
90-179 days........
180 days to 1 year
1 vear or more. . .

Sept. 26,
1966

Apr. 19,
1968

Jan. 21,
1970
4 Vi

4

4%
5
5Vi

5

5Va

5
5%
5%

5VS

5Vi

5%
5%
6
Wa

for Feb. 1968, p. 167.

2 Multiple-maturity time deposits include deposits that are automati­

cally renewable at maturity without action by the depositor and deposits
that are payable after written notice of withdrawal.
3 Maximum rates on all single-maturity time deposits in denominations
of $100,000 or more have been suspended. Rates that were effective
Jan. 21, 1970, and the dates when they were suspended are:
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more

6V4 per cent)
6Vi per cent j
6% per cent ]
7 per cent [
7 V i per cent]

Nov. 1,
1973

5
5 Vi
6
6Vi

&

(4)
( 3)

71/4
( 3)

June 24, 1970
May 16, 1973

Rates on multiple-maturity time deposits in demonination of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturity deposits was eliminated.
4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year

certificates with minimum denomination of $1,000. The amount of such
certificates that a bank could issue was limited to 5 per cent of its total
time and savings deposits. Sales in excess of that amount were subject to
the 6Vi per cent ceiling that applies to time deposits maturing in 2Vi years
or more.
Effective Nov. 1, 1973, a ceiling rate of 7V4 per cent was imposed on
certificates maturing in 4 years or more with minimum denomination
of $1,000. There is no limitation on the amount of these certificates that
banks may issue.
N o t e . —Maximum rates that may be paid by member banks are estab­
lished by the Board of Governors under provisions of Regulation Q;
however, a member bank may not pay a rate in excess of the maximum
rate payable by State banks or trust companies on like deposits under
the laws of the State in which the member bank is located. Beginning
Feb. 1, 1936, maximum rates that may be paid by nonmember insured
commercial banks, as established by the FDIC, have been the same as
those in effect for member banks.
For previous changes, see earlier issues of the B u l l e t i n .

M ARGIN R E Q U IR E M E N T S
(Per cent of market value)
For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)

Period

Ending
date

Beginning
date

1937—Nov.
1
1945—Feb.
5
July
5
1946—Jan. 21
1
1947—Feb.
1949—Mar. 30
1951—Jan. 17
1953—Feb. 20
4
1955—Jan.
Apr. 23
1958—Jan. 16
Aug.
5
Oct. 16
1960—July 28
1962—July 10
1963—Nov.
6

1945—Feb.
July
1946—Jan.
1947—Jan.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.

4,
4.
20.
31 ,
29.

1968—Mar. 11
June
8
6
1970—May
1971—Dec.
6
1972—Nov. 24
Effective Jan.

June
1970—May
1971—Dec.
1972—Nov.
1974—Jan.
3, 1974

7.

19.
3.
22,
15
4.
15,
27.
9.
5.
10

22

On margin’ stocks

On convertible bonds

On short sales
(T)

50
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70

40
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55
65
50

50
60
50
50
50
50

70
80
65
55
65
50

N o t e . —Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit
to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is
a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference
between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective
Mar. 11, 1968.




6Vi

(3)
(3)
( 3)
( 3)
( 3)

1 For exceptions with respect to certain foreign time deposits, see
B u lle tin

Savings deposits............................................
Other time deposits (multiple- and single­
maturity) :
Less than $100,000:
30-89 days.........................................
90 days to 1 year...............................
1 year to 2 Vi years............................
2 VS years or more.............................
4 years or more in minimum denom­
ination of $1,000........................
$100,000 or more......................................

July 1,
1973

JU L Y 1974 o OPEN M AR KET A C C O U N T

A 11

TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions o f dollars)

Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Treasury bills 1

Others within 1 year 2

Period
Gross
pur­
chases

5,214
3,642
6,467
4,880

2,160
1,064
2,545
3,405

1973—May..
June..
Ju ly ..
Aug..
Sept..
Oct...
Nov..
D ec..

717
1,047
1,640
655
480
2,117
583
1,919

623
218
495
945
401
153
489
70

600
163
60
456
564

1974—Ja n ...
Feb..
M ar..
A p r..
May.

1,340
768
664
1,237
737

335
391
566
49
100

0
1
2
3

99
1,036
125
1,396

-3 ,8 2 9

17

4,361
-813

1,101
10

41

1,515
34

1,402
410
165
407

9

75

687

112

2,563

Matched
sale-purchase
transactions
(Treasury bills)

Period

Redemp­ Gross
tions
sales

Gross
sales

-3 ,4 8 3
-6 ,4 6 2
2,933
-1 4 0

351
836

Total outright 1

Gross
pur­
chases

Exch.,
Gross maturity Gross
sales shifts, or
pur­
redemp­ chases
tions

Gross Redemp­ Gross
sales
tions
pur­
chases

11,074
8,896
8,522
15,517

197
197
197
197

Gross
pur­
chases

Gross
pur­
chases

12,362
12,515
10,142
18,121

5,214
3,642
6,467
4,880

2,160
2,019
2,862
4,592

12,177
16,205
23,319
45,780

12,177
16,205
23,319
45,780

33,859
44,741
31,103
74,755

1973—M ay..
June..
July...
Aug...
Sept...
O ct...
N ov...
Dec...

717
1,274
1,666
1,006
1,316
2,117
1,116
2,145

623
218
495
945
401
153
489
70

600
163
60
807
1,400

1,105
4,630
3,405
9,632
6,981
4,735
2,089
3,435

1,105
4,630
3,405
9,632
6,981
4,735
2,089
3,435

7,379
5,621
7,651
2,234
3,309
8,220
6,637
9,523

1974—Jan.. .
Feb...
M ar...
Apr...
M ay..

1,519
798
854
1,409
944

335
391
566
49
100

1,402
410
165
407

2,590
2,393
702

2,590
2,393
702

4,586

4,586

4,442
4,265
6,248
8,069
9,192

1 Before Nov. 1973 B u l l e t in , included matched sale-purchase trans­
actions, which are now shown separately.
2 Includes special certificates acquired when the Treasury borrows
directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972,
38; Aug. 1973; 351; Sept. 1973, 836.

5-10 years

Gross Exch. or
sales maturity
shifts

848
1,338
789
579
123
27

93
30
109
172
26

Gross
sales

33,859
43,519
32,228
74,795

-1 ,3 1 6

Over 10 years

Gross Exch. or
sales maturity
shifts

Gross Exch. or
sales maturity
shifts

Gross
pur­
chases

249
933
539
500

-1 ,8 4 5
685
-2 ,0 9 4
895

93
311
167
129

-1 0 2
150
250
87

37

5,105
78

51

40
-7 8

-4 ,8 1 2
-2 3

100

680
-3 4

331
35

Repur­
chase
agree­
Sales or ments,
redemp­
net
tions

-276
-3
1,247
524
1,388

485
1,197
865

101
-8 8
29

370
239

176
74
212

21
19
6
20
30
4
3
84

29
120
170
360
201

39
46
48
48
15

229
174

35

38

Outright
Gross
pur­
chases

25

25

31

Federal agency obligations

4,988
8,076
-312
8,610

35

200

56

-2,6 6 3

Net
change
in U.S.
Govt.
securi­
ties

-2 ,2 2 0

77

-922

8,240 -1 ,3 6 7
893
5,621
2,076
6,686
2,492 -1 ,0 0 5
72
2,752
7,859
2,325
7,525 -1 ,3 6 0
10,202
1,387
4,500
4,265
5,124
8,498
8,648

Gross
pur­
chases

5,430
4,672
-1 ,4 0 5
-2,028

125
116

Repurchase
agreements
(U.S. Govt,
securities)

1970.............
1971..............
1972.............
1973..............

1,101
10

1-5 years

-2 9
106
157
-9 5
-2 0
20
-1 2 6

100

Bankers’
acceptances,
net

Repur­
chase
agree­
ments

Out­
right

-6
22
-9
-2
-1
-1 7
-1 2
-7
-9
8
-2
23

181
-145
-3 6

4,982
8,866
272
9,227

-5 2

-1,470
1,085
2,416
-9 1 5
7
2,440
-1,307
1,386

223

1 ,7 8 0

—89
142

789
2,155

-4 2
185
33
424

Net
change 3

-328
72
16

3 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers’ acceptances.
N o t e .—Sales, redemptions, and negative figures reduce System hold­
ings ; all other figures increase such holdings.

CO N V ER TIB L E F O R E IG N C U R R E N C IE S H ELD BY FED ERA L RE SER V E BAN KS
(In millions of U.S. dollar equivalent)
End of
period
1970—Dec.
1971—Dec.
1972—Dec.

Total

Pounds
sterling

257
18
192

154
3

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

4
4
4
4
4
5
4
4
4
4

1974—Jan..
Feb.
Mar.

1
32
6




Austrian
schillings

Belgian
francs

Canadian
dollai

Danish
kroner

French
francs

German
marks
98
2
164

20
5

10

Italian
lire

Japanese
yen

Nether­
lands
guilders

20

Swiss
francs

A 12

FEDERAL RESERVE BANKS □ JU L Y 1974
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday

End o f month

1974

Item
Ju n e 26

June 19

June 12

1974
June 5

M a y 29

Ju n e 30

1973
M a y 31

Ju n e 30

A sse ts
1 1 ,4 6 0
40 0

G o ld certificate a c c o u n t ...........................................
S p ecial D r a w in g R ig h ts certifica te a c c o u n t.
C a s h .....................................................................
L o a n s:
M em b er b a n k b o r r o w in g s ..................
O t h e r ...............................................................
A c c e p ta n c e s:
B o u g h t o u t r ig h t........................................
H eld u n d er rep u rch ase a g r e em e n ts.
F ed eral ag e n c y o b lig a tio n s:
B o u g h t o u tr ig h t.........................................
H eld un d er repurchase a g r e e m e n ts.
U .S . G o v t, secu rities:
B o u g h t o u trig h t:
B i l l s ...................................
C ertificates— S p ecia l.
O t h e r ..
N o t e s ................................
B o n d s ..............................
T o ta l b o u g h t o u tr ig h t............................
H eld un d er rep u rch ase a g reem en ts.

1 1 ,4 6 0
4 00

T o ta l a ssets.

p

1 1 ,4 6 0
4 00

1 1 .4 6 0
400

1 1 ,4 6 0
400

1 1 ,4 6 0
40 0

1 0 ,3 0 3
400

216

216

211

210

215

218

223

305

2 ,9 7 9

2 ,4 8 6

3 ,1 5 7

2 ,7 1 0

4 ,7 1 1

3 ,2 0 9

3 ,2 9 8

1 ,7 7 0

96
161

95

95
301

100

97
20 7

97
276

66

250

2 ,5 4 9
534

2 ,5 4 9

2 ,5 4 9
511

2 ,6 2 1

2 ,6 2 1
701

2 ,8 5 8
270

2 ,6 2 1
642

1 ,4 4 9

3 7 ,0 8 9

3 7 ,3 9 6

3 5 ,8 7 7

3 4 ,7 0 0

3 7 ,7 1 8

3 7 ,2 7 4

3 7 ,8 1 8

3 4 ,2 4 7

3 9 ,5 3 3
2 ,8 0 5

3 9 ,5 3 3
2 ,8 0 5

3 9 ,5 3 3
2 ,8 0 5

3 9 ,5 3 3
2 ,8 0 5

3 9 ,3 6 5
2 ,7 6 7

3 9 ,6 9 2
2 ,8 2 2

3 9 ,5 3 3
2 ,8 0 5

3 7 ,1 1 1
3 ,6 6 4

i 7 9 ,4 2 7
1 ,0 4 5

i 7 9 ,7 3 4

i 2 7 8 ,2 1 5
1 ,7 1 4

1 2 7 7 ,0 3 8

i 7 9 ,8 5 0
2 ,0 8 1

7 9 ,7 8 8
69 6

i 8 0 ,1 5 6
1 ,2 3 9

i 7 5 ,0 2 2

100

7 9 ,7 3 4

7 9 ,9 2 9

7 7 ,0 3 8

8 1 ,9 3 1

8 0 ,4 8 4

8 1 ,3 9 5

7 5 ,0 2 2

8 6 ,7 9 1
33 8 , 165
238

8 4 ,8 6 4
p 9 ,0 0 6
238

8 6 ,5 4 2
7 ,9 0 2
2 36

8 2 ,4 6 9
8 ,3 7 5
2 37

9 0 ,3 1 4
8 ,6 1 9
236

8 7 ,1 2 5
p 7 ,2 4 0
239

8 8 ,3 2 9
6 ,9 6 6
23 6

7 8 ,3 0 7
7 .3 1 9
204

69

71
825

63
791

63
778

16
671

90
93 5

63
716

4
927

1 0 7 ,0 8 0

1 0 7 ,6 0 5

1 0 3 ,9 9 2

1 1 1 ,9 3 1

1 0 7 ,7 0 7

1 0 8 ,3 9 3

9 7 ,7 6 9

T o ta l U .S . G o v t, secu rities.
T o ta l lo a n s and se cu ritie s........................
C ash item s in p r o c e ss o f c o lle c t io n . . .
B ank p r e m is e s ................................................
O th er a ssets:
D e n o m in a te d in foreign cu rren cies.
A ll o t h e r ........................................................

1 1 .4 6 0
4 00

1 0 8 ,2 2 8

p

p

L ia b ilitie s
F .R . n o t e s .......................................................
D e p o s its :
M em b er ban k r e se r v e s.......................
U .S . T reasu ry— G en eral a c c o u n t.
F o r e ig n ........................................................
O th er:

6 5 ,5 2 3

6 5 ,7 0 1

6 5 ,2 8 4

6 5 ,0 0 9

2 7 ,7 4 4
2 ,9 4 6
753

3 1 ,2 5 7
906
359

2 7 ,8 9 6
1 ,3 4 0
330

3 3 ,5 3 4
2 ,3 3 3
315

p 3 3 ,7 2 9

p 3 2 ,1 3 8

3 3 ,1 7 2

3 0 ,2 4 9

3 6 ,8 2 4

5 ,7 6 0
1 ,1 2 5

6 ,2 7 8
1 ,0 9 4

5 ,6 3 1
1 ,1 4 9

5 ,5 2 8
1 ,1 0 5

6 ,4 5 4
1 ,4 5 8

1 0 5 ,0 3 3

1 0 5 ,6 5 3

1 0 2 ,1 6 6

1 0 9 ,7 4 5

876
844
327

875
84 4
233

873
844
109

1 0 7 ,0 8 0

1 0 7 ,6 0 5

1 0 3 ,9 9 2

6 5 ,4 5 3
p 3 0 ,0 5 5
2 ,6 9 3
282

A l l o t h e r 3 .................................................

p

650

699

T o ta l d e p o s its .
D e ferred av a ila b ility ca sh ite m s ...............
O th er liab ilities and accru ed d iv id e n d s.
T o ta l lia b ilitie s .

p 1 0 6 ,0 6 7

p

6 5 ,2 9 5

6 4 ,7 3 2

5 9 ,8 0 7

p

2 9 ,6 2 3
2 ,9 1 9
384

3 1 ,0 1 2
3 ,1 3 3
429

2 4 .8 1 8
4 ,0 3 9
334

667

717

p

3 3 ,6 8 8

3 5 ,2 4 1

2 9 ,9 0 8

5 ,4 0 5

1,101

5 ,0 4 1
1 ,1 6 0

5 ,2 7 1
799

1 0 5 ,4 8 9

1 0 6 .1 7 4

9 5 ,7 8 5

873
844
46 9

878
84 4
496

874
844
501

820
793
371

1 1 1 ,931

* 1 0 7 ,7 0 7

1 0 8 ,3 9 3

9 7 ,7 6 9

64 2

p

C ap ital accounts
C a p ita l p aid i n ................................................................................
S u r p lu s ................................................................................................
O th er c a p ita l a c c o u n t s ...............................................................

876
84 4
441

T o ta l lia b ilitie s and c ap ital a c c o u n t s .................................

p 1 0 8 ,2 2 8

C o n tin g e n t lia b ility o n ac c ep ta n c e s p u rch a sed for
foreign c o r r e s p o n d e n ts ..........................................................
M a rk eta b le U .S . G o v t, secu rities h eld in c u sto d y for
foreign and in tern ation al a c c o u n ts .............................

p

769

762

724

725

73 5

795

732

395

2 9 ,3 1 0

2 9 ,1 6 4

2 8 ,7 2 4

2 8 ,6 3 9

2 8 ,1 0 4

2 9 ,6 3 7

2 8 ,4 5 4

2 9 ,2 7 8

F ederal Reserve N o tes— F ederal Reserve A g en ts’ A ccounts
6 9 ,6 9 8

6 9 ,3 6 6

6 9 ,2 1 5

6 8 ,8 5 1

6 8 ,6 2 2

6 9 ,4 9 0

6 8 ,8 2 7

6 3 ,6 5 3

2 ,1 7 5
6 8 ,2 9 5

1 .9 7 5
6 8 ,3 6 5

2 ,1 7 5
6 8 ,0 6 5

2 ,1 3 5
6 7 ,6 1 5

2 ,2 3 5
6 7 ,5 1 5

2 ,1 7 5
6 8 ,2 9 5

2 ,2 3 5
6 7 ,5 1 5

2 ,1 5 5
6 2 ,6 4 5

7 0 ,4 7 0

7 0 ,3 4 0

7 0 ,2 4 0

6 9 ,7 5 0

6 9 ,7 5 0

7 0 ,4 7 0

6 9 ,7 5 0

6 4 ,8 0 0

C o lla te r a l h eld a g a in st n o te s o u tsta n d in g :
U .S . G o v t, s e c u r itie s .................................................................

1 See note 8 on p. A-5.




2 See note 9 on p. A-5.

3 See note 5 on p. A-4.

JU L Y 1974 □ FEDERAL RESERVE BANKS; BANK D EBITS

A 13

M ATURITY D IS T R IB U T IO N O F LOANS AND U .S . G O V E R N M EN T S E C U R IT IE S
H ELD BY FEDERAL RESER V E BAN KS
(In millions of dollars)

Wednesday

End of month

1974

Item

1974

1973

June 26

June 19

June 12

June 5

May 29

June 30

May 31

June 30

Loans—Total...........
Within 15 d ays.. . .
16 days to 90 days.
91 days to 1 y ear..

2,979
2,937
42

2,486
2,421
65

3,155
3,063
92

2,711
2,639
72

4,710
4,644
66

3,209
3,157
52

3,298
3,210

1,771
1,689
82

Acceptances—T otal..
Within 15 days.. ..
16 days to 90 days.
91 days to 1 y e a r..

257
181
76

95
25
70

396
335
61

100
29
71

350
264
86

304
225
79

373
295
78

66
18
48

U.S. Government securities—Total.
Within 15 days1.............................
16 days to 90 days.........................
91 days to 1 year...........................
Over 1 year to 5 years...................
Over 5 years to 10 years................
Over 10 years.................................

80,472
6,855
23,372
20,539
19,879
7,867
1,960

79,734
4,402
24,106
21,520
19,879
7,867
1,960

79,929
7,167
21,436
21,620
19,879
7,867
1,960

77,038
2,593
22,930
21,809
19,879
7,867
1,960

81,931
7,882
23,429
21,009
19,853
7,836
1,922

80,484
4,802
25,150
20,697
19,914
7,945
1,976

81,395
5,397
25,065
21,227
19,879
7,867
1,960

75,022
3,832
19,662
13,612
26,956
9,358
1,602

Federal agency obligations—Total.
Within 15 days1...........................
16 days to 90 days.......................
91 days to 1 year..........................
Over 1 year to 5 years.................
Over 5 years to 10 years..............
Over 10 years...............................

3,083
538
55
333
1,100
703
354

2,549
4
55
333
1,100
703
354

3,060
510
60
333
1,100
703
354

2,621
72
49
312
1,071
746
371

3,322
772
47
312
1,074
746
371

3,128
275
57
397
1,274
754
371

3,263
714
46
312
1,074
746
371

1,449
56
332
561
284
216

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

BANK D E B IT S AND D E PO SIT T U R N O V E R
(Seasonally adjusted annual rates)
Debits to demand deposit accounts1
(billions of dollars)
Period

6 others2

Total 232
SMSA’s
(excl.
N.Y.)

226
other
SMSA’s

235.1
245.0
247.5
252.5
266.4
265.3
274.9
269.8

103.7
107.6
111.7
113.6
111.6
116.4
118.6
115.0

67.4
68.7
71.3
73.6
72.4
74.7
77.1
75.8

53.6
54.0
55.8
58.4
57.5
58.8
61.2
60.6

270.3
294.2
292.5
274.6
275.3

116.2
119.9
120.8
'119.7
120.9

77.3
79.3
80.3
'80.2
80.7

62.2
63.7
64.7
'65.0
65.3

6 others2

226
other
SMSA’s

Total
233
SMSA’s

N.Y.

7,177.0
7,224.6
7,381.4
7,744.6
8,025.3
8,137.2
8,437.9
8,097.7

3,918.3
4,050.2
4,282.4
4,318.2
4,195.7
4,418.0
4,519.8
4,462.8

9,275.1
9,414.3
'9,843.1
'10,144.3
'9,893.3
'10,257.2
'10,611.6
'10,543.6

5,356.7
5,364.1
'5,560.8
'5,826.0
'5,697.6
'5,839.1
'6,091.7
'6,080.8

97.8
99.9
102.6
106.2
107.4
109.5
113.2
110.2

8,081.0
8,896.2
8,914.4
8.637.9
8,970.1

4,517.1
4,582.1
4,718.0
'4,747.6
4,788.7

10,734.8
10,917.4
'11,252.5
'11,424.2
11,555.3

6,217.6
6,335.3
'6,534.5
'6,676.6
6,766.5

111.5
118.0
118.2
'115.4
116.7

N.Y.

16,452.0
16,638.8
r17,224.5
'17,888.9
'17,918.7
'18,394.4
'19,049.5
'18,641.3

1974—Jan................................ 18,815,7
Feb............................... 19,813.6
Mar.............................. '20,166.8
Apr............................... '20,062.1
M ay............................. 20,525.4

1 Excludes interbank and U.S. Govt, demand deposit accounts.
2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.




Leading SMSA’s

Total 232
SMSA’s
(excl.
N.Y.)

Leading SMSA’s

Total
233
SMSA’s
1973—M ay.............................
June.............................
July..............................
Aug..............................
Sept..............................
Oct................................
Nov..............................
Dec...............................

Turnover of demand deposits

N o t e . —Total SMSA’s includes some cities and counties not designated
as SMSA’s.
For back data see pp. 634-35 of July 1972 B u l l e t i n .

A 14

MONEY STO CK □ JU L Y 1974
MEASURES OF THE MONEY STOCK
(In billions o f dollars)
Seasonally adjusted

N ot seasonally adjusted

Month or week
Mi

M2

Mi

M3

M2

Composition of measures is described in the

N o te

Mi

below.

1971—De c
1972—De c

235.2
255.7

473.0
525.5

727.9
822.8

241.9
263.0

477.9
530.6

730.9
826.2

1973—Jun e
July........
Aug........
Sept........
Oct.........
Nov........
Dec.........

265.5
266.4
266.3
265.5
266.6
269.2
271.4

549.5
552.1
555.1
556.8
561.9
567.3
572.1

862.6
867.1
870.7
873.5
880.3
887.7
894.8

263.6
265.7
263.0
264.0
266.1
270.9
279.1

548.9
551.1
551.3
554.4
560.1
565.7
577.2

863.6
867.6
866.6
870.0
877.2
884.0
898.4

1974—Ja n
Feb.........
Mar........
Apr.........
May.......
Junep__

270.8
273.7
276.2
278.1
279.2
280.9

575.4
581.9
586.2
590.2
592.8
597.4

900.4
909.0
915.8
921.5
924.9
930.9

278.1
270.8
273.5
279.6
274.5
278.8

581.4
579.3
585.7
594.6
590.9
596.9

905.9
906.3
916.5
927.7
923.9
932.0

26 p

281.2
280.9
281.5
280.4

596.9
597.2
598.6
597.4

278.2
279.6
280.3
276.5

596.4
598.0
598.8
594.2

3?

281.2

598.4

280.8

599.0

Week ending—
1974—June

5.
12.
19p

July

N o t e . —Composition

of the money stock measures is as follows:

Mi: Averages of daily figures for (1) demand deposits of commercial

banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
M 2: Averages of daily figures for Mi plus savings deposits, time de­

posits open account, and time certificates other than negotiable CD’s of
$100,000 of large weekly reporting banks.
M 3: M 2 plus the average of the beginning- and end-of-month figures
for deposits of mutual savings banks and for savings capital of savings
and loan associations.
For description and back data, see “Revision of the Money Stock Meas­
ures and Member Bank Deposits” on pp. 81-95 of the Feb. 1974 B u l l e t i n
and “Announcements” on p. 470 of the June 1974 B u l l e t i n .

C O M P O N E N T S O F M O NEY STO C K M E A SU R E S AND RELATED ITEM S
(In billions of dollars)

Month
or
week

Cur­
ren­
cy

De­
mand
de­
pos­
its

Seasonally adjusted

Not seasonally adjusted

Commercial banks

Commercial banks

Time and savings
deposits

CD’s 1 Other

Total

Non­
bank
thrift
insti­
tu­
tions2

Cur­
ren­
cy

Demand deposits

Total

Mem­
ber

Domesticnonmember

Time and savings
deposits

C D 's1 Other

Total

Non­
bank
thrift
insti­
tu­
tions2

U.S.
Govt.
de­
pos­
its3

1971—De c
1972—De c

52.6
56.9

182.6
198.7

33.0
43.4

237.9
269.9

270.9
313.3

254.8
297.2

53.5
57.9

188.4
205.1

142.6
152.4

44.1
51.4

33.8
44.3

236.0
267.6

269.8
311.8

253.0
295.6

6.9
7.4

1973—Jun e
July.............
Aug.............
Sept.............
Oct..............
Nov.............
Dec..............

59.4
59.5
59.8
60.2
60.5
61.0
61.7

206.2
206.9
206.4
205.3
206.1
208.2
209.7

62.0
63.9
66.3
66.7
63.8
62.0
62.8

283.9
285.7
288.8
291.4
295.3
298.1
300.6

345.9
349.6
355.1
358.0
359.1
360.1
363.5

313.1
315.0
315.6
316.7
318.5
320.4
322.7

59.4
60.0
60.0
60.1
60.4
61.5
62.7

204.1
205.7
202.9
203.8
205.7
209.5
216.4

149.1
149.7
147.8
148.2
149.7
151.8
157.0

52.4
53.2
52.7
53.3
53.8
55.1
56.6

59.3
62.3
68.4
68.8
66.3
64.1
64.1

285.3
285.4
288.3
290.5
294.0
294.8
298.1

344.7
347.8
356.7
359.3
360.3
359.0
362.2

314.7
316.5
315.3
315.6
317.0
318.3
321.2

7.1
6.5
4.1
5.3
6.0
4.3
6.3

1974—Ja n
Feb..............
Mar.............
Apr..............
Mayp ..........
JuneP..........

61.9
62.7
63.4
64.0
64.5
64.8

208.9
211.1
212.9
214.1
214.8
216.0

65.5
66.6
67.7
75.4
81.2
83.4

304.6
308.2
310.0
312.1
313.6
316.6

370.1
374.8
377.7
387.4
394.7
400.0

325.0
327.1
329.6
331.4
332.1
333.4

61.6
61.9
62.7
63.6
64.2
64.9

216.5
209.0
210.8
216.1
210.2
213.9

156.4
151.2
152.5
156.0
151.5
153.6

57.1
55.2
55.5
57.3
56.0
57.3

66.1
65.9
67.0
72.4
77.8
79.8

303.4
308.5
312.2
314.9
316.4
318.2

369.4
374.4
379.2
387.3
394.2
397.9

324.5
326.9
330.8
333.2
333.1
335.0

8.0
6.6
6.3
6.0
7.5
6.2

Week ending—
1974—June

5 ....
1 2 ....
19*>...
26p . ..

64.6
65.0
64.9
64.8

216.7
216.0
216.7
215.6

81.9
82.5
83.5
84.1

315.7
316.2
317.0
317.1

397.6
398.7
400.5
401.2

64.6
65.3
65.0
64.4

213.6
214.3
215.3
212.1

153.9
153.9
154.2
152.3

56.8
57.6
57.7
57.0

79.2
79.6
79.2
80.2

318.2
218.4
318.5
317.7

397.4
398.1
397.7
397.8

4.2
3.7
6.7
7.9

July

3p . ..

64.9

216.3

85.3

317.2

402.5

65.3

215.5

155.1

57.6

81.1

318.2

399.3

8.7

1 Negotiable time certificates of deposit issued in denominations of
$100,000 or more by large weekly reporting commercial banks.
2 Average of the beginning and end-of-month figures for deposits of
mutual savings banks and savings capital at savings and loan associations.




3 At all commercial banks.

See also

N o te

above,

JU L Y 1974 □ BANK RESERVES; BANK C R ED IT

A 15

AGGREGATE R E SE R V E S AND M EM B ER BANK D E P O S IT S
(In billions of dollars)
Deposits subject to reserve requirements3

Member bank reserves, S.A.i

S.A.
Period

Total

Non­
bor­
rowed

Re­
quired

Avail­
able2

Total

Total member
bank deposits
plus nondeposit
items4

N.S.A.
Demand

Time
and
savings

Private

Demand

U.S.
Govt.

Total

Time
and
savings

Private

U.S.
Govt.

S.A.

N.S.A.

1970—Dec.. .. 29.19
1971—Dec___ ! 31.30
1972—Dec___ 31.41

28.86
31.17
30.36

28.95
31.12
31.13

321.3
27.10
360.3
28.96
29.05 1 402.0

178.8
210.4
241.4

136.1
143.8
154.5

6.5
6.1
6.1

325.2
364.6
406.8

178.1
209.7
240.7

141.1
149.2
160.1

6.0
5.7
6.1

332.9
364.3
406.4

336.8
368.7
411.2

1973—J u n e ... |
J u ly ....
Aug.. .. i
Sept---- j
Oct___
N ov.. . . 1
D ec.. . .!

32.46
33.58
33.91
34.17
34.94
34.86
35.10

30.61
31.62
31.74
32.32
33.47
33.46
33.81

32.22
33.29
33.73
33.95
34.72
34.62
34.80

428.9
30.55
431.1
31.36
436.7
32.04
32.39 , 438.6
32.84
439.7
32.71 ! 440.4
32.91 j 442.2

267.3
270.1
275.0
277.5
277.3
277.1
279.0

156.3
157.1
157.0
156.2
156.4
157.5
158.3

5.3
3.9
4.8
5.0
6.0
5.8
4.9

426.3
429.9
433.7
‘ 437.7
439.7
438.2
447.5

265.9
268.5
276.6
279.0
278.8
276.6
278.5

154.8
156.2
154.0
154.7
156.1
158.3
164.0

5.6
5.1
3.1
4.1
4.8
3.2
5.0

434.5
437.6
443.8
445.9
446.5
447.5
449.6

432.0
436.4
440.8
445.0
446.5
445.3
454.9

1974—Jan . .. j
Feb , '
M ar.. . . :
Apr.
May. . . i
June*\.. |
1

35.85
35.11
34.95
35.90
36.52
36.72

34.80
33.92
33.63
34.17
33.93
33.72

35.69
34.92
34.81
35.72
36.35
36.53

32.80
32.79
33.12
33.66
34.27
34.79

446.8
447.1
450.4
461.6
467.0
472.8

283.2
286.1
287.9
297.1
304.2
308.6

157.4
157.9
158.8
160.0
159.1
160.4

6.2
3.0
3.7
4.5
3.8
3.8

453.0
447.1
450.4
462.5
464.7
469.9

283.1
285.7
288.6
296.2
303.0
306.4

163.4
156.3
156.9
161.5
155.6
158.8

6.5
5.1
4.9
4.8
6.1
4.7

454.3
454.8
459. 1
471.2
477.8
483.0

460.5
454.8
459.1
472.1
475.4
480.2

1 Averages of daily figures. Member bank reserve series reflects actual
reserve requirement percentages with no adjustment to eliminate the
effect of changes in Regulations D and M. Required reserves were in­
creased by $660 million effective Apr. 16, 1969, and $400 million effective
Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970.
Required reserves were reduced by approximately $2.5 billion, effective
Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300
million effective Nov. 22.
2 Reserves available to support private nonbank deposits are defined
as (1) required reserves for (a) private demand deposits, (b) total time
and savings deposits, and (c) nondeposit sources subject to reserve re­
quirements, and (2) excess reserves. This series excludes required reserves
for net interbank and U.S. Govt, demand deposits.
3 Averages of daily figures. Deposits subject to reserve requirements
include total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits

except those due to the U.S. Govt., less cash items in process of collection
and demand balances due from domestic commercial banks.
4 Total member bank deposits subject to reserve requirements, plus
Euro-dollar borrowings, bank-related commercial paper, and certain
other nondeposit items. This series for deposits is referred to as “the ad­
justed bank credit proxy.”
N o t e . —For description of revised series and for back data, see article
“Revision of the Money Stock Measures and Member Bank Reserves and
Deposits” on pp. 61-79 of the Feb. 1973 B u l l e t i n .
Due to changes in Regulations M and D, member bank reserves include
reserves held against nondeposit funds beginning Oct. 16, 1969. Back data
may be obtained from the Banking Section, Division of Research and
Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.

LO A N S AND IN V EST M E N TS AT ALL COM M ERCIAL B A N K S
(In billions of dollars)
Not seasonally adjusted

Seasonally adjusted

Date

Securities

Loans

Total
loans
and
invest­
ments1

Total 1

Plus
loans
sold2

Commercial
and industrial3
Total

Plus
loans
sold 2

U.S.
Treas­
ury

Other4

Securities

Loans

Total
loans
and
invest­
ments 1

Total 1

Plus
loans
sold2

Commercial
and industrial3
Total

Plus
loans
sold 2

U.S.
Treas­
ury

Other4

1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

31___
3 1 5 ....
31___
31___
31___

390.2
401.7
435.5
484.8
556.4

258.2
279.1
291.7
320.3
377.8

283.0
294.7
323.1
380.4

95.9
105.7
110.0
115.9
129.7

108.3
112.1
117.5
131.4

60.7
51.5
57.9
60.1
61.9

71.3
71.1
85.9
104.4
116.7

400.4
412.1
446.8
497.9
571.4

264.4
286.1
299.0
328.3
387.3

290.0
301.9
331.1
389.9

98.4
108.4
112.5
118.5
132.7

111.0
114.6
120.2
134.4

64.5
54.7
61.7
64.9
67.0

71.5
71.3
86.1
104.7
117.1

1973—June
July
Aug.
Sept.
Oct.
Nov.
Dec.

30___
25___
29___
26___
31___
28___
31___

602.0
608.8
617.4
620.2
624.2
628.4
630.3

420.3
427.5
435.9
439.1
441.1
445.5
447.3

423.8
431.5
440.6
443.7
445.7
449.8
451.6

148.2
151.2
153.4
153.7
153.6
155.0
155.8

150.4
153.7
156.3
156.6
156.5
157.7
158.4

61.6
59.8
57.9
56.4
55. 1
55.0
52.8

120.1
121.5
123.6
124.7
128.0
127.9
130.2

605.6
607.4
613.4
619.9
624.0
628.2
647.3

426.6
429.3
435.2
440. 1
440.9
443.9
458.5

430.1
433.3
439.9
444.7
445.6
448.3
462.8

150.4
151.6
152.0
153.8
152.9
154. 1
159.4

152.6
154. 1
154.9
156.7
155.8
156.8
162.0

57.9
56.5
54.9
55. 1
56.0
57.8
58.3

121.1
121.7
123.3
124.8
127.0
126.5
130.6

1974—Jan.
Feb.
Mar.
Apr.
May
June

30p . . .
2 7 * ...
27* . . .

638.0
645.7
654.9
663.2
668.6
673.3

452.3
457.1
466.3
473.7
478.0
480.8

456.7
462.1
471.2
479.1
483.7
486.2

157.8
158.9
164.4
168.9
171.9
173.9

160.4
161.6
167.2
172.0
175.0
176.8

54.4
56.2
56.2
56.7
56.7
57.1

131.3
132.4
132.4
132.8
133.9
135.4

637.6
640.4
651.4
660.5
665.1
677.3

448.3
451.5
461.1
470.4
476.9
488.0

452.7
456.4
466.0
475.8
482.5
493.4

156.1
157.3
164.2
169.6
171.3
176.5

158.7
160.0
167.0
172.7
174.4
179.4

58.7
57.5
57.3
56. 1
53.6
52.8

130.6
131.5
133.0
134.0
134.6
136.5

24 p . . .
29 p . . .

30*.. .

1 Adjusted to exclude domestic commercial interbank loans. See also
note 3.
2 Loans sold are those sold outright by commercial banks to own sub­
sidiaries, foreign branches, holding companies, and other affiliates.
3 Beginning June 30, 1972, commercial and industrial loans were re­
duced by about $400 million as a result of loan reclassifications at one
large bank.
4 Beginning June 30, 1971, Farmers Home Administration insured notes
totaling approximately $700 million are included in “Other securities”
rather than in “Loans.”
5 ®e8H}ning June 30, 1969, data revised to include all bank-premises
subsidiaries and other significant majority-owned domestic subsidiaries;
earlier data include commercial banks only. Also, loans and investments
are now reported gross, without valuation reserves deducted, rather than




net of valuation reserves as was done previously. Fora description of the
revision, see Aug. 1969 B u l l e t i n , pp. 642-46. Data shown in above table
have been revised to include valuation reserves.
N o t e . — Total loans and investments: For monthly data, Jan. 1959—
June 1973, see Nov. 1973 B u l l e t i n , pp. A-96-A-97, and for 1948-58,
Aug. 1968 B u l l e t i n , pp. A-94-A-97. For a description of the current
seasonally adjusted series see the Nov. 1973 B u l l e t i n , pp. 831-32, and
the Dec. 1971 B u l l e t i n , pp. 971-73. Commercial and industrial loans:
For monthly data, Jan. 1959-June 1973, see Nov. 1973 B u l l e t i n , pp.
A-96-A-98; for description see July 1972 B u l l e t i n , p. 683. Data are for
last Wednesday of month except for June 30 and Dec. 31 ; data are partly
or wholly estimated except when June 30 and Dec. 31 are call dates.

A 16

COM M ERCIAL BANKS □ JU L Y 1974
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions of dollars)
Deposits

Loans and investments
Classification by
FRS membership
and FDIC
insurance

Total

Loans
l

Total
assets—
Securities
Total
Cash
lia­
assets 3 bilities
Total 3
and
U.S.
capital
ac­
Treas­ Other
2
ury
counts4

Interbank3

De­
mand

Other

Bor­
row­
ings

Demand
Time

U.S.
Govt.

Total Num­
capital
ber
ac­
of
counts banks

Times
Other

Last-Wednesday-of-month series 6
All commercial banks:
1941-—Dec. 3 1 ...
1947-—Dec. 31 7..
1960—Dec. 3 1 ...
1970-—Dec. 3 1 ...
1971-—Dec. 3 1 ...
1972-—Dec. 3 1 ...

50,746
116,284
199,509
461,194
516,564
598,808

21,714
38,057
117,642
313,334
346,930
414,696

21,808 7,225 26.551
69,221 9,006 37,502
61,003 20,864 52,150
61,742 86,118 93,643
64,930 104,704 99,832
67,028 117,084 113,128

79,104
155,377
257,552
576,242
640,255
739,033

71,283
144,103
229,843
480,940
537,946
616,037

10,982
44 ,349
15,952
23 7,173
240 1,343 94,367 35,360
12,792
65 10,059
17,079 1,799 5,945 133,379 71,641
163 20,986
30,608 1,975 7,938 209,335 231,084 19,375 42,958
32,205 2,908 10,169 220,375 272,289 25,912 47,211
33,854 4,194 10,875 252,223 314,891 38,083 52,658

14,278
14,181
13,472
13,686
13,783
13,927

1973-—June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3 0 ...
2 5 ...
2 9 ...
2 6 ...
31.. .
2 8 ...
31.. .

635,756
634,730
641,140
646,710
654,390
659,280
683,799

456,780
456,620
462,910
466,840
471,340
475,010
494,947

57,877 121,099 103,608
56,450 121,660 95,880
54,910 123,320 92,010
55,080 124,790 100,030
56,010 127,040 111,720
57,770 126,500 104,140
58,277 130,574 118,276

769,908
762,410
766,300
779,730
800,760
797,180
835,224

629,215
619,200
619,520
630,360
646,030
638,740
681,847

31,047
28,710
26,500
27,720
32,830
30,130
36,839

5,590 10,434 236,953 345,191 49,299 55,740 14,046
5,830 6,750 228,470 349,440 52,610 54,920 14,069
6,620 3,460 224,770 358,170 53,220 55,350 14,083
7,190 8,210 228,420 358,820 56,280 55,620 14,102
6,820 5,680 241,130 359.570 60,620 56,510 14,134
7,010 4,350 238,540 358,710 62,870 56,730 14,163
6,773 9,865 263,367 365,002 58,994 58,128 14,171

1974-—Jan.
Feb.
Mar.
Apr.
May
June

30?..
27?..
27?..
24?..
29?..
26?..

673,520
679,130
687,670
694,660
697,970
707,070

484,240
490,180
497,430
504,560
509,780
518,830

58,730 130,550 103,070
57,500 131,450 102,230
57,260 132,980 104,070
56,060 134,040 101,770
53,630 134,560 114,585
52,350 135,890 104,900

810,500
816,200
827,600
833,340
850,625
851,560

651,410
650,970
658.490
665,970
678,265
678,150

31,510
31,320
31,590
30,870
34,070
30,480

6,620
6,200
6,490
7,290
8,200
8,860

9,500
6,620
6,070
5,850
5,880
8,070

233,310
232,930
235,360
235,460
237,265
237,080

58,270
58,560
59,050
59,590
59,870
60,090

14,180
14,202
14,236
14,261
14,290
14,290

Members of
F.R. System:
1941-—Dec.
1947-—Dec.
1960—Dec.
1970-—Dec.
1971-—Dec.
1972-—Dec.

31 . . .
3 1 ...
3 1 ...
3 1 ...
3 1 ...
3 1 ...

43,521 18,021 19,539 5,961
97,846 32,628 57,914 7,304
165,619 99,933 49,106 16,579
365,940 253,936 45,399 66,604
405,087 277,717 47,633 79,738
465,788 329,548 48,715 87,524

23,113
32,845
45,756
81,500
86,189
96,566

68,121
132,060
216,577
465,644
511,353
585,125

61,717
122,528
193,029
384,596
425,380
482,124

10,385
12,353
16,437
29,142
30,612
31,958

140
50
1,639
1,733
2,549
3,561

1,709
1,176
5,287
6,460
8,427
9,024

37,136 12,347
4 5,886
80,609 28,340
54 8,464
112,393 57,273
130 17,398
168,032 179,229 18,578 34,100
174,385 209,406 25,046 37,279
197,817 239,763 36,357 41,228

6,619
6,923
6,174
5,767
5,727
5,704

1973-—June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3 0 ...
2 5 ...
2 9 ...
2 6 ...
3 1 ...
2 8 ...
31.. .

490,533
489,240
494,200
498,322
504,120
507,176
528,124

360,908
360,813
365,951
368,842
371,866
374,148
391,032

41,080
39,331
38,233
38,372
39,375
40,752
41,494

88,545 88,227
89,096 82,091
90,016 78,475
91,108 85,802
92,879 96,251
92,276 89,652
95,598 100,098

604,414
597,607
600,202
611,359
628,710
624,258
655,898

486,770
478,417
478,273
486,975
499,110
491,405
526,837

29,311
27,121
24,972
26,182
31,142
28,522
34,782

4,879
5,121
5.911
6,480
6,112
6,298
5,843

8,167
5,423
2,701
6,740
4,601
3,359
8,273

182,439
175,351
172,082
175,016
185,324
182,931
202,564

261,975
265,401
272,607
272,557
r271,931
270,295
275,374

46,529
48,761
49,283
52,485
56,772
58,865
55,611

43,098
42,539
42,807
42,972
43,618
43,759
44,741

5,705
5,707
5,713
5,718
5,723
5,736
5,735

1974-—Jan.
Feb.
Mar.
Apr.
May
June

3 0 ...
27.. .
27.. .
2 4 ...
2 9 ...
26?..

518,541
522,816
529,961
535,917
538,801
546,777

381,344
385,879
392,461
399,092
403,619
411,334

41,699
40,922
40,537
39,273
37,282
36,214

95,498
96,015
96,963
97,552
97,900
99,229

635,219
639,172
649,114
653,285
669,357
669,578

501,260
500,113
506,641
512,792
524,837
524,101

30,003
29,753
30,083
29,396
32,452
28,961

5,690
5,273
5,558
6,364
7,274
7,928

7,621
5,084
4,817
4,743
4,746
6,282

178,457
178,731
180,862
179,927
182,060
181,957

279,489
281,272
285,321
292,362
298,305
298,973

61,585
63,865
65,428
62,859
64,820
64,270

44,829
45,054
45,491
45,896
46,090
46,280

5,744
5,747
5,754
5,763
5,763
5,763

1,762 41,298 15,699
10 6,844
54 1,325 92,975 34,882
61 9,734
149 20,628
1,667 5,932 132,533 71,348
1,874 7,898 208,037 231,132 19,149 42,427
2,792 10,150 219,102 271,835 25,629 46,731
4,113 10,820 250,693 313,830 37,556 52,166

13,426
13,398
13,119
13,502
13,602
13,721

88,960
87,753
89,568
87,005
99,155
90,089

370,470
373,900
378,980
386,500
392,850
393,660

65,770
67,970
69,740
67,320
69,560
68,720

Call date series
Insured banks:
Total :
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

3 1 ...
3 1 ...
3 1 ...
318..
31. ..
3 1 ...

49,290
114,274
198,011
458,919
514,097
594,502

21,259
37,583
117,092
312,006
345,386
411,525

21,046 6,984 25,788
67,941 8,750 36,926
60,468 20,451 51,836
61,438 85,475 92,708
64,691 104,020 98,281
66,679 116,298 111,333

76,820
152,733
255,669
572,682
635,805
732,519

69,411
141,851
228,401
479,174
535,703
612,822

I0 I
12,615
16,921
30,233
31,824
33,366

54

1973—June 3 0 ... 630,379 452,587 57,532 120,261 101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842
179,971
101,205 780,196 633,180 28,443 6,571 5,821 234,549 357,798 55,906 56,727 13,923
Oct. 1 7... 647,971 468,000
Dec. 3 1 ... 678,113 490,527 57,961 129,625 116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964
National member:
1941—Dec. 3 1 ...
1947—Dec. 3 1 ...
I960—Dec. 3 1 ...
1970—Dec. 318..
1971—Dec. 31. ..
1972—Dec. 3 1 ...

27,571 11,725 12,039 3,806
65,280 21,428 38,674 5,178
107,546 63,694 32,712 11,140
271,760 187,554 34,203 50,004
302,756 206,758 36,386 59,612
350,743 247,041 37,185 66,516

14,977
22,024
28,675
56,028
59,191
67,390

43,433
88,182
139,261
340,764
376,318
434,810

39,458
6, 786
82,023 8,375
35
124,911 9,829
611
982
283,663 18,051
314,085 17,511 1,828
359,319 19,096 2,155

1973—June 3 0 ... 369,856 270,188 31,651 68,018 61,336 449,772 364,129 16,640 2,874
100,231
63,573 460,164 368,351 15,797 3,404
Oct. 1 7... 377,246 277,015
Dec. 3 1 ... 398,236 293,555 30,962| 73,718 70,711 489,470 395,767 20,357 3,876
For notes sse p. A-17.




3,640
5,409
11,098
24,868
27,065
30,342

5,117
5,005
4,530
4,620
4,599
4,612

6,181 137,116 201,318 33,804 31,867
3,369 136,163 209,619 38,819 32,516
5,955 152,705 212,874 39,696 33,125

4,629
4,642
4,659

8,322
4
1,088 23,262
45
795 53,541 19,278
111
3,265 71,660 39,546
4,740 122,298 137,592 13,100
6,014 128,441 160,291 18,169
6,646 146,800 184,622 26,706

JULY 1974 □ COMMERCIAL BANKS

A 17

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions of dollars)
Loans and investments
Securities

Classification by
FRS membership
and FDIC
insurance

Total

Loans
l

U.S.
Treas­
ury

Other
2

Deposits
Total
assets—
Total
Interbank3
Other
Cash
lia­
assets 3 bilities
and
Demand
capital Total3 De­
Time
ac­
mand
counts 4
U.S.
Govt. Other

Bor­
row­
ings
Time
5

Total
capital
ac­
counts

Num­
ber
of
banks

Call date series
Insured banks (cont.):
State member:
1941—Dec. 31....
1947—Dec. 3 1 ....
1960—Dec. 31... .
1970—Dec. 318.. .
1971—Dec. 31... .
1972—Dec. 31... .

15,950
32,566
58,073
94,760
102,813
115,426

6,295
11,200
36,240
66,963
71,441
82,889

7,500 2,155 8,145 24,688
19,240 2,125 10,822 43,879
16,394 5,439 17,081 77,316
11,196 16,600 25,472 125,460
11,247 20,125 26,998 135,517
11,530 21,008 29,176 150,697

22,259
3,739
40,505 3,978
15
68,118 6,608 1,028
101,512 11,091
750
111,777 13,102
721
123,186 12,862 1,406

1973—June 30... . 121,052 91,095 9,429 20,527 26,891 155,017 123,016 12,671
30,659
25,491 158,250 123,123 11,505
Oct. 17... . 125,715 95,056
Dec. 31.. . . 130,240 97,828 10,532 21,880 29,387 166,780 131,421 14,425
Nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

1,509 1,025 2,668 8,708 7,702
10,039 1,448 4,083 20,691 19,342
11,368 3,874 6,082 39,114 35,391
16,039 18,871 11,208 106,457 93,998
17,058 24,282 12,092 123,970 109,841
17,964 28,774 14,767 147,013 130,316

262
484
1,091
1,212
1,408

1973—June 30... . 139,471 91,304 16,452 31,716 13,490 157,461 138,171
49,081
12,141 161,783 141,706
Oct. 17.... 145,010 95,929
Dec. 31... . 149,638 99,143 16,467 34,027 16,167 170,831 150,170

1,248
1,141
1,467

Noninsured
nonmember:
1941 _ D ec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

31... .
31... .
3 1 ....
318...
31... .
31... .

5,776
16,444
32,411
92,399
108,527
128,333

3,241
4,958
17,169
57,489
67,188
81,594

13,874
27,068
40,733
45,734
45,945
51,017

1 2,246
4,025
9,062
9 3,055
17,727
20 6,299
42,218 5,478 9,232
49,597 6,878 10,214
55,523 9,651 10,886

1,502
1,918
1,644
1,147
1,128
1,092

1,986 45,322 61,032 12,725 11,231
1,146 44,735 63,132 15,352 11,432
2,318 49,859 62,851 15,914 11,617

1,076
1,078
1,076

4
27
141
242
552

53
149
645
1,438
1,723
1,796

3,360
6
959
6,558
7 1,271
14,095
19 3,232
51,322
571 8,326
61,946
582 9,451
73,685 1,199 10,938

6,810
6,478
6,948
7,735
7,875
8,017

567
563
586

2,241 52,735 81,379 1,884 12,143
1,305 53,650 85,047 1,735 12,778
1,582 58,966 87,569 1,920 12,862

8,137
8,203
8,229

2,005
2,604
1,968
129

621
381
2,022
1,720
2,412
2,378

4,162
12,366
20,140
40,005
44,717
52,876

31... .
317...
3 1 ....
318...
31 ....
31... .

1,457
2,009
1,498
3,079
3,147
4,865

455
474
550
2,132
2,224
3,731

761
1,280
535
304
239
349

241
255
413
642
684
785

763
576
314
934
1,551
1,794

2,283
2,643
1,883
4,365
5,130
7,073

1,872
2,251
1,443
2,570
2,923
3,775

329
177
159
375
380
488

185
132
101
116
81

1,291
18 1,392
13
846
40 1,298
19 1,273
55 1,530

253
478
293
756
1,134
1,620

13
4
14
226
283
527

329
325
358
532
480
491

852
783
352
184
181
206

1973—June 3 0 ....
Dec. 31.. .,.

5,915
6,192

4,732
4,927

345
316

838
949

1,892
2,010

8,196
8,650

4,438
4,996

488
591

145
344

26
9

2,000
885
2,215 1,463

500
524

204
207

7,233
18,454
33,910
95,478
111,674
133,198

3,696
5,432
17,719
59,621
69,411
85,325

2,270 1,266 3,431 10,992
11,318 1,703 4,659 23,334
11,904 4,287 6,396 40,997
16,342 19,514 12,143 110,822
17,297 24,966 13,643 129,100
18,313 29,559 16,562 154,085

9,573
21,591
36,834
96,568
112,764
134,091

439
643
1,466
1,592
1,895

1973—June 30... . 145,386 96,036 16,797 32,554 15,381 165,657 142,608
Dec. 31.. . . 155,830 104,070 16,783 34,976 18,177 179,480 155,165

1,736
2,057

Total nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

31 ....
3 1 ....
31... .
318...
31... .
3 1 ....

1 Loans to farmers directly guaranteed by CCC were reclassified as
securities and Export-Import Bank portfolio fund participations were
reclassified from loans to securities effective June 30, 1966. This reduced
“Total loans” and increased “Other securities” by about $1 billion.
“Total loans” include Federal funds sold, and beginning with June 1967
securities purchased under resale agreements, figures for which are in­
cluded in “Federal funds sold, etc.,” on p. A-18.
Effective June 30, 1971, Farmers Home Administration notes were
classified as “ Other securities” rather than “Loans.” As a result of this
change, approximately $300 million was transferred to “Other securities”
for the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom of p. A-26.
2 See first two paragraphs of note 1.
3 Reciprocal balances excluded beginning with 1942.
4 Includes items not shown separately. See also note 1.
5 See third paragraph of note 1 above.
6 From the last-Wednesday-of-the-month series, figures for call dates
are shown for June and December as soon as they became available.
7 Beginning with Dec. 31, 1947, the series was revised; for description,
see note 4, p. 587, May 1964 B u l l e t i n .
8 Figure takes into account the following changes, which became
effective June 30, 1969: (1) inclusion of consolidated reports (including
figures for all bank-premises subsidiaries and other significant majorityowned domestic subsidiaries) and (2) reporting of figures for total loans




457

1,779
1,836

190
160
243
359
633

5,504
167 13,758
657 20,986
1,478 41,303
1,742 45,990
1,850 54,406

3,613
18 1,288
7,036
12 1,596
33 3,590
14,388
52,078
796 8,858
63,081
866 9,932
75,305 1,726 11,429

7,662
7,26i
7,300
7,919
8,056
8,223

712
930

2,267 54,514 83,379 2,770 12,643
1,592 60,802 89,784 3,383 13,386

8,341
8,436

and for individual categories of securities on a gross basis—that is, before,
deduction of valuation reserves—rather than net as previously reported.
N o t e . —Data are for all commercial banks in the United States (includ­
ing Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both member and nonmember; stock savings
banks; and nondeposit trust companies.
Figures for member banks before 1970 include mutual savings banks
as follows: three before Jan. 1960 and two through Dec. 1960. Those
banks are not included in insured commercial banks.
Effective June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business; beginning 1973,
excludes one national bank in Puerto Rico.
Beginning Dec. 31, 1973, member banks exclude and noninsured non­
member banks include a noninsured trust company which is a member of
the Federal Reserve System.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and by mergers
etc.
Figures are partly estimated except on call dates.
For revisions in series before June 30, 1947, see July 1947 B u l l e t i n ,
pp. 870-71.

A 18

COM M ERCIAL BANKS □ JU L Y 1974
ASSETS BY CLASS OF BANK, DECEMBER 31, 1973
(Amounts in millions of dollars)

Member banks *
Account

All
Insured
commercial commercial
banks
banks

Large banks
Total

New
York
City

All other
City of
Chicago

Non­
member
banks 1

Other
large

Cash bank balances, items in process................... ..
Currency and coin......................................................
Reserves with Federal Reserve banks.......................
Demand balances with banks in United States........
Other balances with banks in United States............
Balances with banks in foreign countries.................
Cash items in process of collection...........................

118,276
10,706
27,816
31,298
2,786
1,029
44,641

116,266
10,682
27,816
30,026
2,515
685
44,541

100,098
8,142
27,816
18,602
1,839
597
43,103

25,170
652
6,625
5,061
217
122
12,493

3,848
174
1,131
252
167
79
2,045

38,465
2,679
10,251
4,097
871
331
20,236

32,615
4,636
9,809
9,191
584
66
8,328

18,178
2,564

Total securities held—Book value.................................
U.S. Treasury...............................................................
Other U.S. Government agencies..............................
States and political subdivisions.................................
All other securities......................................................

188,852
58,277
29,252
95,145
6,177

187,587
57,961
28,927
94,750
5,948

137,092
41,494
19,144
72,049
4,404

17,072
5,516
2,045
8,736
774

5,546
1,684
668
2,989
204

45,878
13,466
5,461
25,500
1,450

68,597
20,828
10,969
34,824
1,976

51,759
16,783
10,108
23,096
1,773

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

8,657
3,136
1,432
3,650
439

8,653
3,136
1,432
3,650
436

8,570
3,124
1,416
3,598
432

3,653
1,365
597
1,563
128

646
365
63
206
12

3,921
1,311
696
1,635
279

349
83
59
193
14

87
12
17
52
7

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

180,194
55,142
27,820
91,495
5,738

178,933
54,826
27,495
91,100
5,512

128,522
38,370
17,729
68,451
3,972

13,418
4,151
1,448
7,173
647

4,900
1,320
605
2,782
192

41,956
12,155
4,765
23,865
1,171

68,248
20,745
10,910
34,631
1,962

51,672
16,771
10,091
23,044
1,766

Federal funds sold and securities resale agreements...
Commercial banks......................................................
Brokers and dealers....................................................
Others...........................................................................

35,311
32,122
2,647
541

34,305
31,158
2,647
500

26,126
23,080
2,627
419

790
715
61
14

1,118
701
351
66

13,372
11,484
1,662
226

10,846
10,181
553
112

9,185
9,042
20
123

Other loans................................................................ .
Real estate loans........................................................
Secured by farmland...............................................
Secured by residential.............................................
1- to 4-family residences......................................
FHA insured....................................................
VA guaranteed................................................
Other.................................................................
Multifamily..........................................................
FHA insured....................................................
O ther................................................................
Secured by other properties...................................

460,143
118,032
5,394
74,188
67,286
6,648
3,260
57,379
6,901
1,281
5,620
38,450

456,222
117,810
5,373
74,016
67,117
6,612
3,217
57,288
6,899
1,280
5,619
38,421

365,257
87,006
2,419
56,177
50,379
5,862
2,813
41,705
5,798
1,174
4,623
28,410

69,781
7,227
6
3,862
2,667
272
204
2,191
1,194
189
1,006
3,360

20,531
1,231
2
849
782
93
20
669
67
37
30
380

138,524
32,883
295
22,463
19,671
3,253
1,452
14,966
2,792
618
2,174
10,125

136,422
45,665
2,116
29,004
27,259
2,244
1,138
23,877
1,745
331
1,414
14,545

94,885
31,026
2,976
18,010
16,907
786
447
15,674
1,103
106
996
10,040

Loans to domestic and foreign banks.......................
Loans to other financial institutions.........................
Loans on securities to brokers and dealers..............
Other loans for purch./carry securities.....................
Loans to farmers.........................................................
Commercial and industrial loans...............................

10,200
30,515
7,674
4,300
17.327
159,417

9,141
30,401
7,625
4,280
17,146
157,622

8,751
29,019
7,498
3,649
10,229
134,390

4,043
10,343
4,883
737
137
33,590

680
3,929
1,054
319
167
10,875

3,478
12,179
1,343
1,612
2,476
53,692

550
2,568
217
981
7,449
36,233

1,449
1,496
176
651
7,098
25,027

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............................................................

99,927
76,204
33,462
4,834
9,092
6,838
2,254
14,411
8,370
6,040
14,405
23,724
12,751

99,577
75,897
33,274
4,827
9,092
6,838
2,254
14,390
8,369
6,021
14,314
23,680
12,620

73,104
54,992
22,900
3,596
8,117
6.191
1,926
10,236
6,073
4,163
10,143
18,111
11,611

5,408
2,990
496
199
1,040
773
267
137
65
73
1,117
2,418
3,412

1,326
658
147
38
264
238
25
88
60
28
122
668
950

26.178
19;597
7,364
1,463
4,532
3,467
1,065
3,453
2,155
1,299
2,785
6,581
4,684

40,192
31,747
14,892
1,897
2,281
1,713
568
6,558
3,794
2,764
6,119
8,444
2,565

26,824
21,211
10,562
1,238
975
647
328
4,174
2,298
1,877
4,262
5,612
1,140

Total loans and securities...............................................

684,305

678,113

528,476

87,643

27,195

197,774

215,864

155,830

Fixed assets—Buildings, furniture, real estate............
Investments in subsidiaries not consolidated...............
Customer acceptances outstanding...............................
Other assets.....................................................................

13,232
1,412
4,420
14,085

13,160
1,403
4,355
13,784

10,188
1,388
4,121
11,979

1,034
644
2,264
3,229

404
108
289
698

4,155
584
1,345
5,100

4,595
51
224
2,952

3,044
24
299
2,106

Total assets.....................................................................

835,730

827,081

656,250

119,984

32,542

247,422

256,302

179,480

1 Member banks exclude and nonmember banks include a noninsured
trust company that is a member of the Federal Reserve System, and
member banks exclude two national banks outside the continental United
States.
2 See table (and notes), Deposits Accumulated for Payment o f Personal
Loans, p. 26.
3 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.*




12,696
946
432
1,539

N o t e . —Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic
subsidiaries. Figures for total loans and for individual categories of
securities are reported on a gross basis—that is, before deduction of
valuation reserves.
Back data in lesser detail were shown in previous B u l l e t i n s .
Details may not add to totals because of rounding.

JU L Y 1974 o COM M ERCIAL BANKS

A 19

LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1973
(Amounts in millions of dollars)
Member banks 1
Account

All
Insured
commercial commercial
banks
banks

Large banks
Total

All other

New
York
City

City o f
Chicago

Demand deposits..................................................................
Mutual savings b an ks.....................................................
Other individuals, partnerships, and corporations ..
U.S. Government.............................................................
States and political subdivisions...................................
Foreign governments, central banks, etc.....................
Commercial banks in United States............................
Banks in foreign countries..............................................
Certified and officers’ checks, etc..................................

310,071
1,280
231,729
9,865
18,663
1,625
29,975
5,584
11,349

307,634
1,156
230,883
9,856
18,508
1,356
29,815
5,278
10,784

245,620
1,067
179,044
8,273
13,246
1,333
28,713
5,001
8,942

52,661
513
29,305
1,689
658
1,036
12,430
3,803
3,226

10,144

Time and savings deposits..................................................
Savings deposits................................................................

369,723
126,925
503
640
182,639
439
44,306
8,482
5,622
167

281,569
93,721
352
633
139,755
298
33,259
8,341
5,077
133

37,576
6,134

14,090
2,372

Mutual savings banks.....................................................
Other individuals, partnerships, and corporations ..
U.S. Government.............................................................
States and political subdivisions...................................
Foreign governments, central banks, etc....................
Commercial banks in United States............................
Banks in foreign countries.........................................

372,282
127,183
507
652
183,624
439
44,385
9,371
5,858
263

388
21,135
40
2,284
4,364
3,185
46

97
9,027

Total deposits............................................ *..........................

682,353

677,358

527,188

Federal funds purchased and securities sold under
agreements to repurchase...............................................
Other liabilities for borrowed m oney..............................
Mortgage indebtedness.......................................................
Bank acceptances outstanding..........................................
Other liabilities......................................................................

51,167
7,827
762
4,553
23,128

50,410
7,121
759
4,484
21,549

Total liabilities......................................................................

769,790
6

Minority interest in consolidated subsidiaries
..•
Total reserves on loans/securities......................................
Reserves for bad debts (IR S)........................................
Other reserves on lo a n s .................................................
Reserves on securities......................................................

7,806
7,532
99
176

Total capital accounts.........................................................
Capital notes and debentures........................................
Equity capital.....................................................................
Preferred stock.............................................................
Common stock.............................................................
Surplus............................................................................
Undivided profits.....................................................
Other capital reserves..................................................

58,128
4,135
53,993
71
13,882
23,640
15,498
902

N on­
member
banks 1

Other
large
64,451

10,739
942
2,958

93,803
357
75,741
2,547
8,538
4
3,992
114
2,509

1,173
939
457
23

101,702
33,045
58
118
50,004
103
14,201
2,996
1,118
59

128,201
52,169
294
30
59,590
153
15,601
41
318
5

90,714
33,462
155
19
43,869
141
11,126
1,031
780
130

90,237

24,235

190,713

222,004

155,165

48,731
6,879
587
4,251
17,451

10,713
2,773
80
2,364
3,797

4,573
245
80
305
691

27,110
3,067
260
1,357
6,812

6,335
794
167
225
6,151

2,436
947
174
302
5,677

761,682

605,088

109,964

30,129

229,320

235,675

164,702

5
7,790
7,518
98
174

3

2

1

6,417
6,243
54

1,412
1,412

1

7,431
434
244
92
1,552
142
248

2

89,011
196
66,567
3,603
3,806
201

425
417

2,372
2,313

7

51

45
62

3
1,389
1,289
45
55

18,418
930
17,488
13
4,364
7,117
5,666
328

13,386
802
12,585
24
3,364
5,342
3,584
271

8

120

8,607
729
7,878
19
2,154
3,433
2,268
4

1,989
57
1,931

13,784
23,511
15,314
848

44,741
3,333
41,408
47
10,518
18,297
11,915
631

48

15,728
1,617
14,111
15
3,437
6,628
3,779
251

57,603
4,081
53,522
66

212

52,686
1,592
5,417
293
1,262
583
2,407

562
1,120
201

2,208
2,101

Total liabilities, reserves, minority interest, capital
account................................................................................

835,730

827,081

656,250

119,984

32,543

247,422

256,302

179,480

Demand deposits adjusted 3 ...............................................
Average total deposits (past 15 days)...............................
Average total loans (past 15 days)....................................

225,589
662,118
466,822

223,422
657,209
462,549

165,530
510,255
365,939

26,049
87,627
69,294

6,114
22,787
20,240

54,433
183,133
139,096

78,935
216,709
137,309

60,059
151,863
100,882

Selected ratios:
Percentage of total assets
Cash and balances with other banks...........................

14.2

14.1

15.3

21.0

11.8

15.5

12.7

10.1

Total securities held.........................................................
Trading account securities ........................................
U S Treasury...........................................................
States and political subdivisions
.
All other trading account securities
...........

22.6
1.0

22.7

14.2
3.0

17.0

18.5

26.8

28.8

2.0
1.1
.6
.2

1.6
.7
.4

.1

.2

1.0
’4
.4
.2

20.9
1.3
.5
.5
.3

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

21.6
6.6

21.6
6.6

26.6
8.1

28.8
9.3

11.0

4 .0

19.6
5.8
10.4
3.3

11.2

10.9
4 .0

13.5
5.0

1 2.8
6.6

Other loans and Federal funds sold.............................
All other assets.................................................................
Total loans and securities..............................................

59.3
4 .0
81.9

59.3
4 .0
82.0

59.6
4 .2
80.5

57.5
3.1
84.2

86.8

Reserves for loans and securities..................................
Equity capital—Total......................................................
Total capital accounts.....................................................

.9
6.5
7 .0

.9
6.5
7.0

6.3

1.2
6.6

1.3
5.9

6.8

7.2

6.1

Number of banks.................................................................

14,171

13,964

5,735

13

For notes see opposite page.




.4
.4

1.0

1.1

1.3
.6

.5

3.5

15.1
4.1

6.0

8.6

1.7

2.5

17.0
4.9
9 .6
2 .4

58.8

66.5
4 .6
83.6

61.4
4.5
79.9

6.0

73.0

9

.1

58.0
3.0

1.0

.9

5.7
6.4

6.8

7.2

7.0
7.5

156

5,557

8,436

.8

A 20

WEEKLY REPORTING BANKS □ JU L Y 1974
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
Loans

Federal funds sold, etc. i

Wednesday

Total
loans
and
invest­
ments

Other

To brokers
and dealers
involving—

Total

To
com­
mer­
cial
banks

U.S.
Treas­
ury
se­
curi­
ties

Other
se­
curi­
ties

For pui•chasing
or carryinjI securities

To
others

Total

Com­
mer­
cial
and
indus­
trial

Agri­
cul­
tural

To brokers
and dealers

U.S.
Treas­
ury
secs.

Other
secs.

To nonbank
financial
institutions

To
others

U.S.
Treas­
ury
secs.

Other
secs.

Pers.
and
sales
finan.
COS.,
etc.

Other

Large banks—
Total

1973
June

6.............
13.............
20.............
27.............

341,398
343,301
344,169
344,157

12,967
13,386
12,648
12,047

11,685
10,799
11,468
10,794

779
2,026
673
796

207
207
260
258

296
354
247
199

248,341
249,911
252,129
252,740

103,381
103,687
105,004
104,812

3,202
3,236
3,279
3,304

564
1,462
561
887

5,847
5,841
5,744
5,687

223
210
208
210

2,915
2,946
2,933
2,916

8,439
8,203
8,764
8,615

15,784
15,709
16,105
16,282

1974
May

1...............
8.............
15.............
22.............
29..............

388,389
385,361
386,489
385,682
385,211

16,542
15,072
15,701
15,647
15,254

14,947
13,497
14,001
12,688
13,387

956
938
974
1,924
1,025

271
262
342
464
402

368
375
384
571
440

286,830
285,026
285,911
286,067
286,205

121,349
121,447
121,497
121,027
120,888

3,800
3,791
3,795
3,784
3,794

436
335
393
1,053
337

5,079
4,589
4,742
4,775
4,737

123
124
117
133
122

2,788
2,775
2,762
2,773
2,739

9,632
9,348
9,180
8,986
9,437

20,109
19,951
20,194
20,157
20,287

June

5p ...........
12*...........

390,970
390,049
390,562
391,777

18,823
16,960
15,309
16,174

15,441
13,901
13,201
14,055

2,014
1,985
905
967

686
512
581
552

682
562
622
600

287,675
287,457
290,516
291,492

120,735
121,488
122,960
123,575

3,759
3,760
3,871
3,843

1,544
602
672
507

4,937
5,006
5,108
4,706

125
129
129
127

2,701
2,699
2,680
2,686

9,457
9,319
9,913
9,876

20,451
20,355
20,849
20,975

72,133
72,513
73,455
73,097

2,170
1,552
2,089
1,968

1,972
1,311
1,909
1,925

103
103
93
33

95
138
87
5

57,058
58,101
58,445
58,501

29,162
29,343
29,956
29,758

73
71
72
72

455
1,352
452
799

3,394
3,405
3,299
3,312

58
49
48
48

637
662
662
651

2,470
2,347
2,759
2,572

5,142
5,109
5,274
5,265

1...............
8...............
15...............
22...............
29...............

85,767
82,992
84,291
83,698
83,353

2,869
1,468
2,507
1,919
1,642

2,862
1,449
2,479
1,909
1,603

10
19
10
39

68,712
67,198
67,620
68,055
67,989

34,878
34,841
34,931
34,770
34,944

153
149
147
144
141

337
260
320
983
272

3,057
2,643
2,861
2,896
2,843

32
33
28
37
28

596
594
578
553
561

3,546
3,261
3,130
3,007
3,248

7,040
6,979
7,093
7,116
7,171

5p ............
12*.............

85,219
85,784
86,289
87,300

1,798
1,707
1,257
2,233

1,720
1,677
1,144
2,163

38
21
104
64

69,326
68,931
70,145
70,641

34,735
35,156
35,875
36,426

138
146
145
138

1,445
538
535
423

2,989
2,970
3,064
2,768

28
28
28
26

558
565
562
562

3,241
3,185
3,538
3,487

7,303
7,316
7,605
7,624

269,265
270,788
270,714
271,060

10,797
11,834
10,559
10,079

9,713
9,488
9,559
8,869

676
1,923
580
763

207
207
260
253

201
216
160
194

191,283
191,810
193,684
194,239

74,219
74,344
75,048
75,054

3,129
3,165
3,207
3,232

109
110
109
88

2,453
2,436
2,445
2,375

165
161
160
162

2,278
2,284
2,271
2,265

5,969
5,856
6,005
6,043

10,642
10,600
10,831
11,017

8.............
15.............
22..............
29..............

1 ...............

302,622
302,369
302,198
301,984
301,858

13,673
13,604
13,194
13,728
13,612

12,085
12,048
11,522
10,779
11,784

949
929
965
1,924
1,025

271
262
342
464
402

368
365
365
561
401

218,118
217,828
218,291
218,012
218,216

86,471
86,606
86,566
86,257
85,944

3,647
3,642
3,648
3,640
3,653

99
75
73
70
65

2,022
1,946
1,881
1,879
1,894

91
91
89
96
94

2,192
2,181
2,184
2,220
2,178

6,086
6,087
6,050
5,979
6,189

13,069
12,972
13,101
13,041
13,116

5p ............
12p ............
19*>............
26p ............

305,751
304,265
304,273
304,478

17,025
15,253
14,052
13,941

13,721
12,224
12,057
11,892

2,006
1,976
896
961

654
512
581
552

644
541
518
536

218,349
218,526
220,371
220,851

86,000
86,332
87,085
87,149

3,621
3,614
3,726
3,705

99
64
137
84

1,948
2,036
2,044
1,938

97
101
101
101

2,143
2,134
2,118
2,124

6,216
6,134
6,375
6,389

13,148
13,039
13,244
13,351

\ 9 p ...............

26 p. . . . . . .
New York City

1973
June

6.............
13..............
20.............
27...............
1974

May

June

19p ...............

26 p .............
Outside
New York City

1973
June

6.............
13.............
20.............
27..............
1974

May

June

For notes see p. A-24.




JU L Y 1974 □ W EEKLY REPORTING BANKS

A 21

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)

Loans (cont.)

Investments

Other (cont.)

U.S. Treasury securities
Notes and bonds
maturing—

To commercial
banks

Real
estate

Do­
mes­
tic

For­
eign

Con­
sumer
instal­
ment

Wednesday
For­
eign
govts. 2

All
other

Total

Bills

Certif­
icates

Within
1 y*>

1 to
5 yrs.

After
5 yrs.

Large banks—
Total

1973
49,314
49,618
49,902
50,121

3,214
3,227
3,409
3,390

4,840
5,036
5,184
5,161

29,810
29,944
30,157
30,357

1,271
1,314
1,329
1,335

19,537
19,478
19,550
19,663

24,263
24,267
23,916
23,836

4,505
4,472
4,184
4,039

3,976
3,950
3,920
3,956

12,967
12,999
12,978
13,011

2,815
2,846
2,834
2,830

......................... June 6
...................................13
................................... 20
...................................27

56,797
56,900
57,220
57,375
57,512

4,194
4,063
4,040
4,111
4,127

6,367
6,209
6,191
6,457
6,328

33,237
33,260
33,334
33,416
33,508

1,873
1,839
1,900
1,877
1,898

21,046
20,395
20,546
20,143
20,491

22,960
22,847
22,262
22,186
21,850

2,690
2,669
2,349
2,400
2,120

4,284
4,282
3,361
3,680
3,573

11,954
11,910
12,545
12,187
12,265

4,032
3,986
4,007
3,919
3,892

......................... May 1
................................... 8
................................... 15
................................... 22
...................................29

57,585
57,809
58,082
58,183

4,081
4,047
3,931
4,034

6,453
6,212
6,263
6,365

33,562
33,663
33,796
33,915

1,859
1,832
1,881
1,966

20,426
20,536
20,381
20,734

22,316
22,123
21,800
20,982

2,727
2,485
2,218
1,531

3,654
3,753
3,716
3,653

11,960
11,893
11,896
11,856

3,975
3,992
3,970
3,942

.........................June 5*
...................................12*
................................... 19*
................................... 26*

1974

New York City

1973
5,368
5,404
5,466
5,489

1,164
1,151
1,118
1,215

2,184
2,313
2,447
2,385

2,224
2,234
2,254
2,271

701
718
732
717

4,026
3,943
3,906
3,947

4,368
4,292
4,279
4,050

1,568
1,346
1,323
1,139

558
586
581
552

1,594
1,651
1,661
1,667

648
709
714
692

.........................June 6
...................................13
...................................20
...................................27

6,539
6,578
6,647
6,684
6,716

1,436
1,453
1,447
1,507
1,567

2,962
2,803
2,708
2,929
2,890

2,349
2,358
2,357
2,376
2,386

811
786
798
743
738

4,976
4,460
4,575
4,310
4,484

4,116
3,919
3,727
3,607
3,598

502
308
68
54
37

597
596
351
393
392

1,750
1,718
2,003
1,897
1,909

1,267
1,297
1,305
1,263
1,260

....................... May 1
................................... 8
................................. 15
...................................22
...................................29

6,713
6,767
6.832
6.832

1,509
1,620
1,528
1,595

3,002
2,810
2,929
2,907

2,400
2,420
2,436
2,444

746
771
792
789

4,519
4,639
4,276
4,620

3,644
3,907
3,809
3,356

88
263
141
-243

395
451
432
378

1,911
1,932
1,958
1,949

1,250
1,261
1,278
1,272

.......................June 5*
...................................12*
.................................. 19*
................................. 26*

1974

Outside
New York City

1973
43,946
44,214
44,436
44,632

2,050
2,076
2,291
2,175

2,656
2,723
2,737
2,776

27,586
27,710
27,903
28,086

570
596
597
618

15,511
15,535
15,644
15,716

19,895
19,975
19,637
19,786

2,937
3,126
2,861
2,900

3,418
3,364
3,339
3,404

11,373
11,348
11,317
11,344

2,167
2,137
2,120
2,138

....................... June 6
................................. 13
................................. 20
................................. 27

50,258
50,322
50,573
50,691
50,796

2,758
2,610
2,593
2,604
2,560

3.405
3.406
3,483
3,528
3,438

30,888
30,902
30,977
31,040
31,122

1,062
1,053
1,102
1,134
1,160

16,070
15,935
15,971
15,833
16,007

18,844
18,928
18,535
18,579
18,252

2,188
2,361
2,281
2,346
2,083

3,687
3,686
3,010
3,287
3,181

10,204
10,192
10,542
10,290
10,356

2,765
2,689
2,702
2,656
2,632

....................... May 1
................................. 8
................................. 15
.................................22
.................................29

50,872
51,042
51,250
51,351

2,572
2,427
2,403
2,439

3,451
3,402
3,334
3,458

31,162
31,243
31,360
31,471

1,113
1,061
1,089
1,177

15,907
15,897
16,105
16,114

18,672
18,216
17,991
17,627

2,639
2,222
2,077
1,655

3,259
3,302
3,284
3,335

10,049
9,961
9,938
9,967

2,725
2,731
2,692
2,670

....................... June 5*
.................................12*
.................................19*
.................................26*

1974

For notes see p. A-24.




A 22

WEEKLY REPORTING BANKS □ JU L Y 1974
ASSETS AND LIABILITIES OF U R G E COMMERCIAL BANKS— Continued
(In millions o f dollars)

Investments (cont.)
Other securities
Obligations
of State
and
political
subdivisions

Wednesday
Total

Tax
war­
rants3

All
other

Other bonds,
corp. stock,
and
securities

Certif.
of
partici­
pation4

All
other5

Cash
items
in
process
of
collec­
tion

Re­
serves
with
F.R.
Banks

Cur­
rency
and
coin

Bal­
ances
with
do­
mestic
banks

Invest­
ments
in sub­
sidiar­
ies not
consol­
idated

Other
assets

Total
assets I
total
liabil­
ities

Large banks—
Total

1973
55,827
55,737
55,476
55,534

8,400
8,123
7,982
7,900

38,083
38,034
38,044
37,980

1,545
1,578
1,575
1,636

7,799
8,002
7,875
8,018

27,769
28,278
29,158
27,012

20,879
18,081
21,543
18,362

3,768
4,163
4,147
4,304

10,142
9,804
9,909
9,788

1,263
1,261
1,268
1,272

19,761
19,490
19,574
19,881

424,980
424,378
429,768
424,776

1...........................
8...........................
15...........................
22..........................
29...........................

62,057
62,416
62,615
61,782
61,902

7,621
7,680
7,801
7,490
7,483

40,939
41,393
41,338
40,995
40,905

2,392
2,385
2,433
2,384
2,394

11,105
10,958
11,043
10,913
11,120

35,137
30,485
36,430
31,399
35,680

22,283
22,910
24,226
19,902
26,076

4,269
4,131
4,370
4,453
4,692

10,468
11,240
12,980
12,865
12,340

1,515
1,542
1,551
1,559
1,566

24,000
23,784
23,959
23,522
24,268

486,061
479,453
490,005
479,382
489,833

5*.........................

62,156
63,509
62,937
63,129

7,505
8,007
7,511
7,384

40,931
41,406
41,333
41,312

2,397
2,508
2,519
2,525

11,323
11,588
11,574
11,908

32,299
32,446
32,243
31,909

21,271
24,666
21,214
22,880

4,052
4,494
4,566
4,684

12,134
10,526
11,076
10,994

1,588
1,571
1,583
1,675

24,920
25,022
24,362
25,105

487,234
488,774
485,606
489,024

8,537
8,568
8,642
8,578

2,075
2,077
2,101
2,097

4,614
4,602
4,714
4,589

357
356
348
368

1,491
1,533
1,479
1,524

8,285
8,420
8,944
8,619

5,232
4,593
5,757
4,439

478
490
487
500

4,246
4,120
4,316
4,140

597
595
600
604

6,469
6,212
6,243
6,402

97,440
96,943
99,802
97,801

June

6..........................
13...........................
20...........................
27...........................

May

1974

June

\ 2 p ................................

19*.........................
26*.........................
New York City

1973
June

6...........................
13...........................
20...........................
27...........................

May

1...........................
8...........................
15...........................
22...........................
29...........................

10.070
10,407
10,437
10,117
10,124

2,138
2,152
2,142
2,036
2,017

5,378
5,709
5,688
5,532
5,469

543
545
541
539
551

2,011
2,001
2,066
2,010
2,087

12,157
11,485
13,072
11,913
13,286

6,166
7,385
7,100
4,657
9,186

481
504
486
503
510

4,111
5,516
6,891
7,095
6,251

710
725
723
731
731

7,325
7,280
7,431
7,086
7,489

116,717
115,887
119,994
115,683
120,806

June 5*...........................
12*.........................
19v .........................
26*.........................

10,451
11,239
11,078
11.070

2,240
2,692
2,472
2,371

5,582
5,770
5,796
5,787

554
607
603
635

2,075
2,170
2,207
2,277

10,812
11,424
10,753
11,673

6,423
8,486
5,914
8,037

494
508
513
514

6,207
4,985
5,170
5,127

744
725
736
740

7,754
7,953
7,341
7,596

117,653
119,865
116,716
120,987

47,290
47,169

6,325
6,046
5,881
5,803

33,469
33,432
33,330
33,391

1,188
1,222
1,227
1,268

6,308
6,469
6,396
6,494

19,484
19,858
20,214
18,393

15,647
13,488
15,786
13,923

3,290
3,673
3,660
3,804

5,896
5,684
5,593
5,648

666
666
668
668

13,292
13,278
13,331
13,479

327,540
327,435
329,966
326,975

5,483
5,528
5,659
5,454
5,466

35,561
35,684
35,650
35,463
35,436

1,849
1,840
1,892
1,845
1,843

9,094
8,957
8,977
8,903
9,033

22,980
19,000
23,358
19.486
22,394

16,117
15,525
17,126
15,245
16,890

3,788
3,627
3,884
3,950
4,182

6,357
5,724
6.089
5,770
6.089

805
817
828
828
835

16,675
16,504
16,528
16,436
16,779

369,344
363,566
370,011
363,699
369,027

5,265
5,315
5,039
5,013

35,349
35,636
35,537
35,525

1,843
1,901
1,916
1,890

9,248
9,418
9,367
9,631

21.487
21,022
21,490
20,236

14,848
16,180
15,300
14,843

3,558
3,986
4,053
4,170

5,927
5,541
5,906
5,867

844
846
847
935

17,166
17,069
17,021
17,508

369,581
368,909
368,890
368,037

1974

Outside
New York City

1973
June

6...........................
13...........................
2 0
27...........................
1974

May

1...........................
8...........................
15...........................
22...........................
29...........................

June

5 p .........................
12*.........................
19*.........................
26*.........................

For notes see page A-24.




)
>
>

JU L Y 1974 □ W EEKLY REPORTIN
§ AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue
(In millions of dollars)
Deposits

Time and savings

Demand
Domestic
interbank

IPC

Foreign

Com­
Mutual
sav­ Govts., mer­
etc. 2
cial
ings
banks

Certi­
fied
and
offi­
cers’
checks

Total6
Sav­
ings

Other

States
and
polit­
ical
sub­
divi­
sions

148,
149,
153,
149,

776
722
700
733

1,135
893
859
841

3,349
3,345
3,578
3,392

6,066
5,509
5,901
5,681

180,008
180,235
178,796
179,960

58,361
58,290
58,204
58,253

86,550
86,870
86,017
87,228

22,232
21,917
21,506
21,432

166,
156,
164,
155,
161,

774
700
675
659
657

1,449
1,368
1,310
1,075
1,114

4,692
4,777
4,786
4,897
4,862

8,597
7,045
7,791
8,395
6,939

203,690
205,601
206,597
208,783
209,559

57,830
57,926
57,868
57,867
57,844

106,216
107,797
108,757
110,319
111,056

24,921
25.053
25.053
25,397
25,466

157,

687
671
629
651

1,899
1,431
1,360
1,220

5,056
4,729
4,682
4,759

7,944
6,666
6,637
6,873

209,454
209,896
209,425
210,561

57,929
57,853
57,780
57,885

111,166
111,597
111,111
111,865

24,995
24,635
24,410
24,364

40 ;
39 ;

38.
38!

396
366
334
372

930
729
710
682

2,350
2,388
2,590
2,408

2,553
2,052
2,398
2,338

32,299
32,439
31,944
32,305

5,346
5,336
5,311
5,323

18,685
18,561
18,250
18,565

1,720
1,766
1,657
1,664

47,
45;
48;
46;
48;

394
361
335
357
328

1,216
1,167
1,103
888
887

3,424
3,432
3,549
3,628
3,467

4.600
3,707
4,289
5,196
3,672

38,060
38,642
39,139
40,032
40,409

5.061
5,064
5.073
5.062
5,067

22,925
23,372
23,601
24,238
24.560

1,683
1,686
1,809
1,831
1,823

45,

359
342
319
332

1,652
1,226
1,145
1,019

3,800
3,440
3,435
3,497

4,293
3,381
3,396
3,703

40,521
40,489
40,468
41,264

5.073
5.056
5,037
5.056

24.561
24,544
24,310
24,734

1,808
1,601
1,620
1,712

113 ;
110 ;

110.
111.

380
356
366
361

205
164
149
159

999
957
988
984

3,513
3,457
3,503
3,343

147,709
147,796
146,852
147,655

53,015
52,954
52,893
52,930

67,865
68,309
67,767
68,663

20,512
20,151
19,849
19,768

118
111
115
108
113

380
339
340
302
329

233
201
207
187
227

1,268
1,345
1,237
1,269
1,395

3,997
3,338
3,502
3,199
3,267

165,630
166,959
167,458
168,751
169,150

52,769
52,862
52,795
52,805
52,777

83,291
84,425
85,156
86,081
86,496

23,238
23,367
23,244
23,566
23,643

112
111
114
112

328
329
310
319

247
205
215
201

1,256
1,289
1,247
1,262

3,651
3,285
3,241
3,170

168,933
169,407
168,957
169,297

52,856
52,797
52,743
52,829

86,605
87,053
86,801
87,131

23,187
23,034
22,790
22,652

156,
159.
158;

44 ;
44 ;

45;




WEEKLY REPORTING BANKS □ JU L Y 1974

A 24

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)

Borrowings
from—

Wednesday

Fed­
eral
funds
pur­
F.R.
chased, Banks
etc. 7

Reserves
for—

Other
liabili­
ties,
Others etc. 8

Secur­
ities

Memoranda

Total
capital

Total
loans
(gross)
ad­
justed 9

Large negotiable
Total
time CD’s
Gross
loans
included in time
liabili­
and
De­
and savings deposits11 ties of
invest­ mand
banks
ments deposits
to
ad­
(gross)
Issued Issued their
ad­
justed i 0 Total
to
to
foreign
justed9
lPC’s others bran­
ches

Large banks—
Total

1973
39,933
37,723
39,541
37,077

514
1,347
1,393
1,117

3,279
3,100
3,402
3,840

17,186
17,193
17,637
17,742

4,467
4,475
4,477
4,488

30,542
30,569
30,514
30,544

246,409
249,271
249,900
250,603

326,499
329,275
329,292
329,973

97,876
99,275
98,265
97,924

59,033
59,462
58,217
59,258

39,070
39,345
38,410
39,462

19,963
20,117
19,807
19,796

940
1,266
1,242
1,521

1 ........................
8 ......................
15......................
22......................
29......................

50,142
51,132
50,733
47,583
50,241

1,366
1,487
3,004
2,349
3,968

6,039
6,497
6,575
6,542
6,203

19,848
19,840
20,712
20,527
20,879

5,039
5,032
5,020
5,035
5,038

32,922
32,980
32,908
32,883
32,812

284,231
282,538
283,571
284,915
283,945

369,248
367,801
368.448
368,883
367,697

102,020
98,142
99,443
98,532
96,753

74,288
75,979
76,879
78,837
79,584

51,650
52,967
53,788
55,193
55,890

22,638
23,012
23,091
23,644
23,694

2,709
3,025
3,080
3,418
2,988

5*....................
12*....................
19*....................
26*....................

51,998
54,929
49,474
51,325

2,092
2,658
1,988
2,341

6,353
5,970
6,267
6,358

21,265
20,865
21,028
21,861

5,052
5,061
5,060
5,065

33,072
33,090
33,006
32,978

286,976
286,469
288,693
289,577

371.448
372,101
373,430
373,688

100,788
100,558
99,024
100,528

79,160
79,647
79,154
80,176

55,658
55,991
55,375
56,015

23,502
23,656
23,779
24,161

2,813
2,410
2,503
3,388

9,327
9,111
10,191
8,555

125
200

1,561
1,420
1,531
1,888

6,307
6,344
6,494
6,802

1,280
1,286
1,287
1,292

7,721
7,717
7,704
7,689

56,092
57,101
57,507
57,329

68,997
70,051
70,428
69,957

20,915
20,284
20,846
20,411

19,142
19,197
18,730
19,037

12,877
12,719
12,343
12,658

6,265
6,478
6,387
6,379

556
962
957
1,264

645
870

2,730
2,823
2,789
2,711
2,583

7,283
6,5
7,313
7,022
7,102

1,399
1,401
1,396
1,406
1,415

8,562
8,592
8,590
8,561
8,549

67,283
65,764
66,201
66,558
66,461

81,469
80,090'
80,365
80,282
80,183

23,712
20,983
21,479
22,076
20,575

23,452
24,007
24,434
25,244
25,598

15,936
16,389
16,579
17,182
17,511

7,516
7,618
7,855
8,062
8,087

1,801
1,666
1,589
1,956
1,454

7,424
7,270
7,086
7,739

1,419
1.423
1,421
1.424

8,648
8,633
8,613
8,600

67,895
67,341
68,730
69,116

' 23,328
21,756
21,869
83,541 22,643

25,528
25,437
25,393
25,980

17,379
17,352
17,058
17,372

8,149
8,085
8,335
8,608

1,405
1,192
1,236
1,893

: 76,961
78,991
■ 77,419
> 77,513

39,891
40,265
39,487
40,221

June

6 ......................
13......................
20......................
2 1 ......................

May

June

1974

New York City

1973
June

6 ......................
13......................
20......................
27......................

May

1 ........................
8 ......................
15......................
22......................
29......................

10,706
11,718
11,353
9,001
11,285

June

5*....................
12*....................
19*....................
26*....................

11,678
14,966
11,533
13,253

‘220

2,571
2,424
2,615
2,579

30,606
28,612
29,350
28,522

514
1,222
1,193
1,117

1,718
1,680
1,871
1,952

10,879
10,849
11,143
10,940

3,187
3.189
3.190
3,196

22,821
22,852
22,810
22,855

190,317
192,080
192,393
193,275

26,193
26,626
26,067
26,804

13,698
13,639
13,420
13,417

384
304
285
257

15,122
15,394
15,236
15,582
15,607

908
1,359
1,491
1,462
1,534

15,353
15,571
15,444
15,553

1,408
1,218
1,267
1,495

1974

1,425
300

Outside
New York City

1973
June

6.
13.
20.
27.

May

1.
8.
15.
22.
29.

39,436
39,414
39,380
38,582
38,956

1,366
842
2,134
2,349
2,543

3,309
3,674
3,786
3,831
3,620

12,565
12,960
13,399
13,505
13,777

3.640
3,631
3,624
3,629
3,623

24,360
24,388
24,318
24,322
24,263

216,948
» 78,308 50,836 35,714
216,774 287,711 77,159 51,972 36,578
217,370 288,083 77,964 52,445 37,209
218,357 288,601 76,456 53,593 38,011
217,484
►76,178 53,986 38,379

June

5*............................ 40,320
39,963
12*.
37,941
19*.
38,072
26*.

2,092
2,358
1,988
2,121

3,782
3,546
3,652
3,779

13,841
13,595
13,942
14,122

3,633
3.638
3.639
3.641

24,424
24,457
24,393
24,378

219,081
219,128
219,963
220,461

1974

1 Includes securities purchased under agreements to resell.
2 Includes official institutions and so forth.
3 Includes short-term notes and bills.
4 Federal agencies only.
5 Includes corporate stock.
6 Includes U.S. Govt, and foreign bank deposits, not shown separately.
7 Includes securities sold under agreements to repurchase.




1
Ii
r

77,460
78,802
77,155
77,885

53,632
54,210
53,761
54,196

38,279
38,639
38,317
38,643

8 Includes minority interest in consolidated subsidiaries.
9 Exclusive of loans and Federal funds transactions with domestic com­
mercial banks.
10 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
11 Certificates of deposit issued in denominations of $100,000 or more.

JU L Y 1974 □ BUSINESS LOANS OF BANKS

A 25

COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)

Outstanding

Net change during—

1974

Industry
June
26
Durable goods manufacturing:
Primary metals.................................
Machinery.........................................
Transportation equipment..............
Other fabricated metal products. . .
Other durable goods........................
Nondurable goods manufacturing:
Food, liquor, and tobacco..............
Textiles, apparel, and leather..........
Petroleum refining...........................
Chemicals and rubber.....................
Other nondurable goods.................
Mining, including crude petroleum
and natural gas...........................
Trade: Commodity dealers.................
Other wholesale.......................
Retail........................................
Transportation.....................................

June
19

1974

June
12

June
5

May
29

June

May

1974
Apr.

1973

1973

II

I

IV

1st
half

2nd
half

1,865
8.519
3,107
2,835
4,612

1,856
8,575
3,155
2,821
4,526

1,855
8,378
3,071
2,791
4,503

1,858
8,208
3,016
2,775
4,471

1,899
8,156
2,997
2,776
4,452

-3 4
363
114
59
160

-1 5
7
-5 6
71
126

21
409
175
105
274

-2 8
779
233
235
560

84
1,069
358
267
349

-247
136
90
15
-363

56
1,848
591
502
909

-2 2 9
615
362
71
-7 3

3,937
4,127
1,283
3,126
2,483

3,940
4,075
1,279
3,162
2,457

3,875
4,023
1,312
3,114
2,406

3,988
3,952
1,337
3,059
2,387

4,059
3,912
1,495
3,006
2,363

-122
215
-212
120
120

-267
1
287
8
6

45
122
-7
227
96

-3 4 4
338
68
355
222

124
570
-1 7 6
255
116

340
-4 4 0
184
-198
-6 5

-2 2 0
908
-108
610
338

733
-205
203
-1 5 0
91

4,190 4,195 4,151 4,131 4,167
1,568 1,535 1,565 1,565 1,657
6,252 6,205 6,080 6,062 6,117
7,169 7,158 6,978 6,972 7,046
6,105 6,110 6,096 6,130 6,134
2,501 2,530 2,444 2,514 2,530
6,917 6,610 6,505 6,369 6,373
6,207 6,167 6,085 6,046 6,036
11,643 11,657 11,606 11,556 11,544
9,391 9,332 9,186 9,083 8,994
1,710 1,488 1,472 1,459 1,416

Bankers’ acceptances...........................
Foreign commercial and industrial
loans..............................................
4,683 4,686 4,671 4,598 4,478
Total classified loans........................... 104,230 103,519 102,167 101,536 101,607

23
-8 9
135
123
-2 9
-2 9
544
171
99
393
294

-9 4
-305
-7
118
69
102
397
316
4
138
124

145
-2 3 7
238
315
-4
253
390
138
296
44
-4 4

74
-631
366
556
36
326
1,331
625
399
575
374

312
357
471
540
105
149
-291
29
188
541
62

-233
630
151
-1 8 4
14
-7 8
596
-2 0 0
565
302
199

386
-2 7 4
837
1,096
141
475
1,040
654
587
1,116
436

-1 5 6
588
194
-1 9
80
-9 1
1,330
11
927
682
-123

205
2,623

132
1,162

168
3,169

505
6,954

105
5,584

23
610
1,237 12,538

-361
4,480

Total commercial and industrial loans
of large commercial banks.......... p123,575 122,960 121,488 120,735 120,888

2,687

1,064

3,836

7,587

5,867

1,938 13,454

5,309

Other public utilities...........................
Construction.........................................
Services.................................................

See N o t e to ta b le b e lo w .

“ T E R M ” CO M M ERC IA L A ND IN D U STR IA L LOANS O F LARGE C O M M ERC IA L BAN KS
(In millions of dollars)
Outstanding
1974

Industry
June
26
Durable goods manufactur­
ing :
Primary metals...................
Machinery..........................
Transportation equipment.
Other fabricated metal
products.........................
Other durable goods..........
Nondurable goods manufac­
turing:
Food, liquor, and tobacco.
Textiles, apparel, and
leather.............................
Petroleum refining.............
Chemicals and rubber.......
Other nondurable goods. .
Mining, including crude pe­
troleum and natural gas.
Trade: Commodity dealers. .
Other wholesale........
Retail.........................
Transportation.......................
Communication.....................
Other public utilities.............
Construction..........................
Services...................................
All other domestic loans . . . .
Foreign commercial and in­
dustrial loans..................

Net change during—

May
29

Apr.
24

Mar.
27

1974

1973
Feb.
27

Jan.
30

Dec.
26

Nov.
28

Oct.
31

II

1974

1973

I

IV

1st
half

III

1,105 1,111
3,285 3,213
1,410 '1,424

1,083
3,145
1,423

1,064
3,114
1,365

1,046
3,037
1,367

1,092
2,950
1,324

1,104
2,866
1,284

1,240
2,726
1,257

1,259
2,731
1,239

41
171
45

-4 0
248
81

-203
186
18

-2 1
39
77

1
419
126

954
2,107

960
2,012

934
1,972

911
1,915

911
1,837

938
1,737

894
1,772

912
1,754

901
1,795

43
192

17
143

23
-1 6

2
98

60
335

1,571

rl ,584

1,533

1,529

1,527

1,514

1,491

1,469

1,470

42

38

14

84

80

1,128
963
1,737
1,171

1,120
954
1,686
1,157

1,147
934
1,690
1,145

1,089
945
1,603
1,139

1,043
901
1,569
1,080

1,032
920
1,570
1,069

1,003
933
1,561
1,082

1,036
839
1,509
1,077

1,033
883
1,534
1,090

39
18
134
32

86
12
42
57

-2 5
13
9
-1 8

59
44
71
37

125
30
176
89

3,130
141
1,408
2,420
4,424
1,032
3,443
2,131
5,274
3,022

''3,172
'144
'1,404
2,514
'4,474
1,033
3,356
'1,984
'5,263
'2,945

3,284
144
1,335
2,543
4,414
978
3,196
1,908
5,223
r2,935

3,245
140
1,323
2,480
4,417
966
3,154
1,898
5,076
2,808

3,203
129
1,315
2,376
4,311
940
3,245
1,940
5,004
2,384

3,153
137
1,265
2,249
4,327
947
3,298
1,943
4,937
2,692

2,958
127
1,190
2,206
4,320
860
3,252
1,905
5,049
2,602

2,950
135
1,172
2,227
4,208
828
3,121
1,936
4,916
2,617

2,958
120
1,223
2,175
4,220
819
2,857
1,954
4,777
2,552

-115
1
85
-6 0
7
66
289
233
198
214

287
13
133
274
97
106
-9 8
-7
27
206

-3 2
11
12
59
41
2
416
-8 7
330
17

144
-7
112
141
-2 6
73
427
96
157
384

172
14
218
214
104
172
191
226
225
420

2,547

'2,396

'2,369

'2,350

2,321

2,469

2,334

2,306

2,308

197

'16

148

-399

213

Total loans............................. p44,403 '43,906 '43,335 '42,531 41,486 41,563 40,793 40,235 39,898

1,872

'1,738

918

1,592

3,610

N o t e . —About 160 weekly reporting banks are included in this series;
these banks classify, by industry, commercial and industrial loans amount­
ing to about 90 per cent of such loans held by all weekly reporting banks
and about 70 per cent of those held by all commercial banks.
For description of series see article “ Revised Series on Commercial and
Industrial Loans by Industry,” Feb. 1967 B u l l e t i n , p . 209.




Commercial and industrial “ term” loans are all outstanding loans with
an original maturity of more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity of the commitment was in excess of 1 year.

A 26

DEM AND DEPOSIT OW NERSHIP

d

JU L Y 1974

G R O SS DEMAND D E P O S IT S OF INDIV IDUALS, P A R T N E R S H IP S , AND C O R P O R A T IO N S 1
(In billions of dollars)
Type of holder
Class of bank, and quarter or month

Total
deposits,
IPC

Financial
business

Nonfinancial
business

Consumer

Foreign

All
other

1970—Sept.................................................................................
Dec..................................................................................

17.0
17.3

88.0
92.7

51.4
53.6

1.4
1.3

10.0
10.3

167.9
175.1

1971—M ar.................................................................................
June................................................................................
Sept.................................................................................
Dec..................................................................................

18.3
18.1
17.9
18.5

86.3
89.6
91.5
98.4

54.4
56.2
57.5
58.6

1.4
1.3
1.2
1.3

10.5
10.5
9.7
10.7

170.9
175.8
177.9
187.5

1972—June...............................................................................
Sept.................................................................................
Dec.................................................................................

17.9
18.0
18.9

97.6
101.5
109.9

60.5
63.1
65.4

1.4
1.4
1.5

11.0
11.4
12.3

188.4
195.4
208.0

1973—Mar.................................................................................
June................................................................................
Sept.................................................................................
Dec..................................................................................

18.6
18.6
18.8
19.1

102.8
106.6
108.3
116.2

65.1
67.3
69.1
70.1

1.7
2.0
2.1
2.4

11.8
11.8
11.9
12.4

200.0
206.3
210.3
220.1

1974—Mar.................................................................................

18.9

108.4

70.6

2.3

11.0

211.2

All commercial banks:

Weekly reporting banks:
1971—Dec.................................................................................

14.4

58.6

24.6

1.2

5.9

104.8

1972—Dec.................................................................................

14.7

64.4

27.1

1.4

6.6

114.3

1973—May................................................................................
June................................................................................
July.................................................................................
Aug.................................................................................
Sept.................................................................................
Oct. ................................................................................
Nov.................................................................................

13.8
14.2
14.8
14.3
14.5
15.0
14.8
14.9

59.1
60.8
61.1
59.5
60.6
61.7
62.9
66.2

26.9
27.1
27.3
27.3
27.2
27.3
27.5
28.0

1.9
1.9
1.9
1.9
1.9
2.0
2.1
2.2

6.4
6.3
6.6
6.1
6.5
6.6
6.7
6.8

108.0
110.2
111.7
109.1
110.8
112.5
113.9
118.1

1974—Jan..................................................................................
Feb..................................................................................

15.2
14.1
14.7
14.7
14.2

63.8
62.1
61.5
62.2
62.3

28.4
26.9
27.6
29.6
28.0

2.3
2.3
2.1
2.1
2.1

6.7
6.2
6.3
6.2
6.1

116.5
111.5
112.1
114.7
112.7

Apr.................................................................................
Mayp ..............................................................................
1 Including cash items in process of collection.
N o t e . —Daily-average

balances maintained during month as estimated

from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971
B u l l e t i n , p. 466.

D E PO SIT S ACCUM U LATED FO R PAYM ENT O F P E R SO N A L LOANS
(In millions of dollars)
Class of
bank
All commercial.........................
Insured...................................
National member.................
State member........................
All member...............................

Dec. 31,
1971
680
677
387
95
482

Dec. 31,
1972
559
554
311
71
381

June 30,
1973
538
533
304
71
375

Dec. 31,
1973
507
503
288
64
352

1 Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the B u l l e t i n for
July 1972, p. 626. Categories shown here as “Other large” and “All other
member” parallel the previous “Reserve City” (other than in New York
City and the City of Chicago) and “Country” categories, respectively
(hence the series are continuous over time).




Class of
bank
All member—Cont.
Other large banks 1...........
All other member i ............
All nonmember......................
Noninsured.........................

Dec. 31,
1971

112
371
197
195
2

Dec. 31,
1972

69
313
177
172
5

June 30,
1973

63
312
163
158
5

Dec. 31,
1973

58
294
155
152
3

N o t e . — Hypothecated deposits, as shown in this table, are treated one
way in monthly and weekly series for commercial banks and in another
way in call-date series. That is, they are excluded from “Time deposits”
and “ Loans” in the monthly (and year-end) series as shown on pp. A-16;
from the figures for weekly reporting banks as shown on pp. A-20-A-24
(consumer instalment loans); and from the figures in the table at the
bottom of p. A-15. But they are included in the figures for “Time de­
posits” and “ Loans” for call dates as shown on pp. A-16-A-19.

JU L Y 1974 □ LOAN SALES BY BANK S; OPEN M AR KET PAPER

A 27

L OANS SO LD O U T R IG H T BY CO M M ERC IA L BA N K S
(Amounts outstanding; in millions of dollars)
To own subsidiaries, foreign branches,
holding companies, and other affiliates

To all others except banks

By type of loan

Date
Total

By type of loan
Total

Commercial
and
industrial

All other

Commercial
and
industrial

All other

1974—Mar.

6
13
20
27,

4,939
4,935
4,840
4,904

2,754
2,768
2,787
2,834

2,185
2,167
2,053
2,070

1,414
1,420
1 .419
1.454

339
339
340
369

1,075
1,081
1 ,079
1.085

Apr.

3
10
17
24

5,114
5,063
5,043
5,386

2,893
2,911
2,874
3,080

2,221
2,152
2,169
2,306

1,440
1,443
1,448
'1,482

358
356
360
r393

1,082
1.087
1.088
r 1,089

May

1
8
15
22
29

5,399
5,536
5,442
5,567
5,653

3,020
3,069
3,039
3,084
3,112

2,379
2,467
2,403
2,483
2,541

1,471
1,475
1,457
1.455
1,442

379
375
358
357
359

1,092
1,100
1,099
1,098
1,083

June

5
12
19
26

5,648
5,493
5,380
5,372

2,986
2,999
2,888
2,943

2,662
2,494
2,492
2,429

1,469
1,446
1,450
1,437

384
374
391
382

1.085
1,072
1,059
1,055

N o t e .— A m o u n ts s o ld u n d e r r e p u r c h a s e a g re e m e n t a re e x c lu d e d . F ig u re s in c lu d e sm a ll a m o u n ts so ld
b y b a n k s o t h e r t h a n la rg e w e e k ly r e p o r tin g b a n k s .

CO M M ERC IA L A N D FIN A N C E COM PANY PA P E R A N D B A N K ER S’ A C C EPT A N C E S O U T ST A N D IN G
(In millions of dollars)
Dollar acceptances

Commercial and finance
company paper
Placed through
dealers

End of period

Accepting banks

Total
Bank
Bank
related Other1 related Other2
196
196
196
196
196
197
197
197

Total

F.R. Banks

Own
bills

Bills
bought

Own
a c c t.

For­
eign
corr.

Others

ImEx­
ports
ports
from
into
United United
States States

All
other

3,078
1,940
1,478
1,707

7,397
10,556
12,184
13,972
17,705
18,460
19,230
20,842

3,392
3,603
4,317
4,428
5,451
7,058
7,889
6,898

1,223
1,198
1,906
1,544
1,567
2,694
3,480
2.706

1,094
983
1,447
1,344
1.318
1,960
2,689
2,006

129
215
459
200
249
735
791
700

187
193
164
58
64
57
261
106

144
191
156
109
146
250
254
179

1,837
2,022
2,090
2,717
3,674
4,057
3,894
3,907

792
997
1,086
1,423
1,889
2,601
2,834
2,531

974
829
989
952
1,153
1,561
1,546
1,909

1,626
1,778
2,241
2,053
2,408
2,895
3,509
2,458

1,148 8,288
1,173 8,316
1,207 7,954
1,350 7,676
1,353 8,845
1,319 11,727
1,317 12,824
1,311 11,751

2,922
3,110
3,307
3,758
3,878
3,549
3,655
3,570

23,314
23,187
22,995
24,365
23,565
25,007
25,149
24,441

6,888
7.237
7,693
7,734
8,170
8.237
8,493
8,892

2,197
2,185
2,254
1,968
2,099
2,042
2,566
2,837

1,763
1,746
1,803
1,598
1,629
1,731
2,129
2.318

433
439
452
370
470
311
437
519

83
66
132
84
145
107
71
68

384
395
496
522
548
589
604
581

4,225
4,591
4,810
5,159
5,379
5,499
5,252
5,406

2,009
2,053
2,222
2,268
2,296
2,345
2,320
2,273

2,509
2,755
2,954
2,945
3,289
3,222
3,340
3,499

2,371
2,428
2,517
2,520
2,585
2,670
2,833
3,120

1,429
1,449
1,508
1,664
1,807

4,072
4,080
4,537
5,170
5,277

26,000 9,101
25,738 9,364
25,125 10,166
24,516 10,692
25,456 11,727

2.706
2,854
2,986
3,232
3,089

2,251
2,328
2,413
2,744
2,642

454
525
573
488
447

68
69
296
216
373

589
592
684
700
732

5,738
5,850
6,200
6,544
7,532

2,334
2,434
2,827
2,900
2,952

3,492
3,182
2,979
2,833
2,899

3,275
3,748
4,361
4,959
5,876

5
6
7
8
9
0
1
2

9,300
13,645
17,085
21,173
32,600
33,071
32,126
34,721

1,216
409
495
930

1,903
3,089
4,901
7,201
10,601
12,262
10,923
11,242

1973—May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

35,672
35,786
35,463
37,149
37,641
41,602
42,945
41,073

1974—Jan..
Feb.
Mar.
Apr.
May

45,491
47,164
44,690
44,677
46,171

13,990
15,897
13,520
13,327
13,631

1 As reported by dealers; includes finance company paper as well as
other commercial paper sold in the open market.
2 As reported by finance companies that place their paper directly with
investors.




Based on-

Held by-

Placed
directly

N o t e . — Back data available from Financial Statistics Division, Federal
Reserve Bank of New York.

A 28

IN TER ES T RATES □ JU L Y 1974
PRIME RATE CHARGED BY BANKS
(Per cent per annum)

1973—June

July

8
19
25
2,
3.
9.
17.
18.
23.
30.

Rate

Effective date

Rate

Effective date

7.

9 ^ -9 3 4 .-

14.

9 % -9% .98/,0
91/4- 91/ 2. -

1974—Jan.
7 % « -7 %
7% «

Aug. 6.
7.
13.
21.
22.
28.
29,

8 3 4 -9 .
9.
9-914 ■
9i/4«-9i/2

Sept. 14,
18,
27.

9 34 .-1 0

10.
934_10.

Oct. 22,
24,

91/2_934_10i
91/2-93/4.-10

Feb. 11.
19.
25.
26.

9-914.93/h,

Mar. 4.

8 % - 8 V io -

9 . - 9 14
87/io-8^4>-9
8 V10- 834 .

5.

91/2-934.
9% .

Apr.

10.

15.

10 . - 10 i/ia -

19.

1 0 -IO 1/101014.

1974—June

IOI/4

23.
24.

10i4*-10Vio

25.

IO14-IO 4/10-

26.

104/10-

101/4 . -

Rate

3..

111/2
.-116/101134

7..

1114- 111/2 ■-

116/10

10.
21.
24.
25.

in /i­
ll -

26.

1 1 1 /2 -1 1 3 4 .-

14 111/ 2-

111/ 2 .- 1 1 3 4

11Vi * - 1134-

80

l l /l

104/10-

IOI/2

83/4 .
8 V i - 8 6/ i o 834.
8 ^ . - 8 8/io

19.
21.
22.
26.
28.
29.

91/2-

9 3 4 -9 8 / u -

1974—Apr. 11.

97/10

81/2-83/4.

Effective date

99/io

29.

73/4 . - 8
7 3 4 -8 .
8 - 8 14 ■
8 % « -8 %
81 /4 -8 1 /2 .
8*4«

Effective date

28.

IOI/2 .

11 8/10
11 34 . - 1 1 8/10

10 % «-

1034-11

30.

101/ 2 . -

106/10-

1034-11

834.-88/.0-9
8 8 /io -9 .

May

9.
9 . - 9 14
9-914.-91/2

2,

9 14 . - 9 4/10-

3,

91/2
914- 94/ 1091/ 2 .

4

934

94/10-9 i/2-

934.
934b-98/io10

N o t e . —Beginning Nov. 1971, several banks adopted a floating prime
rate keyed to money market variables. . denotes the predominate prime
rate quoted by commercial banks to large businesses.

101/ 2- 106/ 101034 » - l l

3.

1 06 / 1 0 -1 0 3 4 1

6.

-1 1
1 0«/io-10% -

11 ■
11 ■

7.
10,
13.
17.

9 4 /10- 9 V i » -

5

2.

11- 1114"
l i i 4 » - l i 4/i

1114-1 1—4/10
-11% "

20

1 1 % B -1 1 %

Effective Apr. 16, 1973, with the adoption of a two tier or “dual prime
rate,” this table shows only the “large-business prime rate,” which is the
range of rates charged by commercial banks on short-term loans to large
businesses with the highest credit standing.

RATES ON B U S IN E S S LOANS OF BAN KS
Size of loan (in thousands of dollars)
All sizes

1-9

10-99

100-499

500-999

1,000 and over

Center
May
1974

Feb.
1974

May
1974

Feb.
1974

May
1974

Feb.
1974

May
1974

Feb.
1974

May
1974

Feb.
1974

May
1974

10.28
9.95
10.71
10.42
10.02
10.04
10.05

11.32
11.24
11.94
11.37
10.93
10.84
11.30

10.06
9.78
10.48
10.14
9.90
9.99
9.83

11.06
11.00
11.40
11.00
10.94
10.78
11.13

9.75
9.62
9.99
9.82
9.60
9.82
9.68

10.10
9.99
10.32
10.17
10.09
10.32
10.04

11.32
11.31
11.02
11.19
11.00
12.12
11.31

9.78
9.72
9.65
10.03
9.35
10.43
9.65

11.19
11.49
11.38
11.00
10.52
11.79
10.93

9.79
9.92
10.25
9.97
10.14
10.35
9.51

10.47
10.06
10.19
10.45
12.48
10.56
10.64

11.58
12.06
11.76
11.66
9.96
11.36
11.34

10.24
9.95
10.58
10.10
14.20
9.63
10.22

11.48
12.74
11.26
11.13
11.50
10.65
9.81

10.09
10.02
10.58
10.57
8.90
9.79
9.55

Feb.
1974

Short-term
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................

11.15
11.08
11.65
11.09
10.88
10.82
11.19

9.91
9.68
10.28
9.98
9.80
9.93
9.78

10.50
10.70
11.31
9.59
10.43
10.32
11.01

9.86
9.93
10.42
9.18
9.69
9.90
10.16

11.06
11.25
11.69
10.80
10.69
10.67
11.27

10.09
10.12
10.46
9.98
9.81
9.98
10.08

11.41
11.54
12.01
11.36
10.92
10.97
11.34

Revolving credit
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................

11.21
11.47
11.35
11.06
10.58
11.84
11.01

9.82
9.91
10.20
10.00
9.96
10.34
9.58

11.00
10.76
11.36
11.63
10.00
11.73
10.71

10.22
9.32
9.82
11.14
9.75
10.58
10.24

11.27
11. 16
11.52
11.37
10.17
11.28
11.37

10.09
9.60
10.27
10.27
9.88
9.97
10.11

11.36
11.27
11.36
11.35
10.51
11.79
11.39

Long-term
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
8 Southwest..............................
4 West Coast............................

11.41
12.64
11.27
11.14
11.03
10.83
9.97

10.16
10.03
10.48
10.48
10.93
9.90
9.75

10.61
10.67
10.81
9.49
10.19
11.51
11.31

10.74
10.93
10.51
10.49
10.88
10.75

N o t e . —Beginning Feb. 1971 the Quarterly Survey of Interest Rates on
Business Loans was revised. For description of revised series see pp. 46877 of the June 1971 B u l l e t i n .




10.82
11.50
11.03
10.13
9.96
11.32
11.06

10.42
10.93
10.07
9.69
13.59
10.23
10.21

10.92
11.90
11.01
11.10
11.49
10.64
9.40

JU L Y 1974 □ IN TE R E S T RATES

A 29

MONEY MARKET RATES
(Per cent per annum)

Period

Prime
commercial
paper1
90-119
days

4- to 6months

U.S. Government securities4

Finance

Prime
paper
bankers’
placed
accept­
directly,
ances,
3- to 6- 90 days 1
months2
CO.

Fed­
eral
funds
rate3

3-month bills5
Rate
on new
issue

Market
yield

6-month bills5
Rate
on new
issue

Market
yield

9-to 12-month issues
1-year

bill (mar­ Other 6
ket yield)5

3- to 5year
issues 6

5.10
5.90
7.83

4.89
5.69
7.16

4.75
5.75
7.61

4.22
5.66
8.21

4.321
5.339
6.677

4.29
5.34
6.67

4.630
5.470
6.853

4.61
5.47
6.86

4.71
5.46
6.79

4.84
5.62
7.06

5.07
5.59
6.85

4.66
8.20

7.72
5.11
4.69
8.15

7.23
4.91
4.52
7.40

7.31
4.85
4.47
8.08

7.17
4.66
4.44
8.74

6.458
4.348
4.071
7.041

6.39
4.33
4.07
7.03

6.562
4.511
4.466
7.178

6.51
4.52
4.49
7.20

6.49
4.67
4.77
7.01

6.90
4.75
4.86
7.30

7.37
5.77
5.85
6.92

1973—June.
July..
Aug..
Sept.
O ct..
Nov..
D ec..

8.00
9.26
10.26
10.31
9.14
9.11
9.28

7.99
9.18
10.21
10.23
8.92
8.94
9.08

7.45
8.09
8.90
8.90
7.84
7.94
8.16

7.98
9.19
10.18
10.19
9.07
8.73
8.94

8.49
10.40
10.50
10.78
10.01
10.03
9.95

7.188
8.015
8.672
8.478
7.155
7.866
7.364

7.19
8.01
8.67
8.29
7.22
7.83
7.45

7.234
8.081
8.700
8.537
7.259
7.823
7.444

7.23
8.12
8.65
8.45
7.32
7.96
7.56

7.05
7.97
8.32
8.07
7.17
7.40
7.01

7.27
8.37
8.82
8.44
7.42
7.66
7.38

6.76
7.49
7.75
7.16
6.81
6.96
6.80

1974—Jan ..
Feb..
Mar..
A pr..
May.
June.

8.86
8.00
8.64
9.92
10.82
11.18

8.66
7.82
8.42
9.79
10.62
10.96

7.92
7.40
7.76
8.43
8.94
9.00

8.72
7.83
8.43
9.61
10.68
10.79

9.65
8.97
9.35
10.51
11.31
11.93

7.755
7.060
7.986
8.229
8.430
8.145

7.77
7.12
7.96
8.33
8.23
7.90

7.627
6.874
7.829
8.171
8.496
8.232

7.65
6.96
7.83
8.32
8.40
8.12

7.01
6.51
7.34
8.08
8.21
8.16

7.46
6.93
7.86
8.66
8.78
8.71

6.94
6.77
7.33
7.99
8.24
8.14

2..
9.,
16.,
23.,
30.,

8.00
8.20
8.43
8.73
9.30

7.88
8.00
8.18
8.50
9.10

7.30
7.50
7.75
7.85
8.00

7.85
8.00
8.08
8.60
9.10

8.81
8.98
9.03
9.33
9.61

7.188
7.675
7.920
8.047
8.300

7.36
7.71
7.82
8.06
8.35

7.081
7.566
7.637
7.882
8.231

7.27
7.53
7.59
8.02
8.24

6.71
6.96
7.06
7.56
7.84

7.15
7.34
7.59
8.15
8.49

6.93
7.06
7.16
7.48
7.69

Apr.

6.
13.
20.
27.

9.53
9.70
9.88
10.23

9.38
9.60
9.73
10.13

8.25
8.40
8.50
8.50

9.30
9.50
9.50
9.85

9.93
10.02
10.36
10.78

8.358
8.648
8.051
7.857

8.51
8.49
8.05
8.10

8.211
8.393
8.084
7.995

8.31
8.34
8. 18
8.27

7.95
8.05
8.05
8.14

8.48
8.55
8.61
8.82

7.91
7.98
7.94
8.04

May

4.
11.
18.
25.

10.85
11.00
11.00
10.63

10.73
10.83
10.80
10.38

8.70
8.90
9.00
9.00

10.35
10.70
10.75
10.75

11.17
11.29
11.46
10.95

8.909
9.036
8.023
8.197

8.81
8.60
8.00
7.90

8.796
9.006
8.031
8.440

8.73
8.71
8.12
8.28

8.45
8.46
8.11
7.99

9.10
9.21
8.79
8.39

8.29
8.51
8.20
8.09

June

1.
8.
15.
22.
29.

10.56
10.78
10.98
11.33
11.65

10.31
10.53
10.75
11.10
11.48

9.00
9.00
9.00
9.00
9.00

10.75
10.75
10.75
10.75
10.90

11.54
11.45
11.60
11.85
11.97

7.983
8.300
8.260
8.177
7.841

8.04
8.05
8.23
7.88
7.45

8.205
8.426
8.324
8.175
8.003

8.26
8.16
8.32
8.04
7.96

8.06
8.15
8.14
8.10
8.24

8.46
8.61
8.68
8.66
8.88

8.07
8.06
8.06
8.09
8.33

1967.
1968.
1969.
1970.
1971.
1972.
1973.

Week ending—
1974—Mar.

1 Averages of the most representative daily offering rate quoted by
dealers.
2 Averages of the most representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Seven-day averages for week ending Wednesday. Beginning with
statement week ending July 25, 1973, weekly averages are based on the
daily average of the range of rates on a given day weighted by the volume
of transactions at these rates. For earlier statement weeks, the averages
were based on the daily effective rate—the rate considered most repre­




sentative of the day’s transactions, usually the one at which most trans­
actions occurred.
4 Except for new bill issues, yields are averages computed from daily
closing bid prices.
5 Bills quoted on bank-discount-rate basis.
6 Selected note and bond issues.
N o t e . —Figures for Treasury bills are the revised series described on p.
A-35 of the Oct. 1972 B u l l e t i n .

IN TER ES T RATES □ JU L Y 1974

A 30

BOND AND STOCK YIELDS
(Per cent per annum)

Government bonds

Corporate bonds

State and local
Period

United
States
(long­
term)

Aaa utility

Stocks

By selected
rating

By
group

Dividend/
price ratio

Earnings /
price ratio

Total 1
Aaa

Baa

New
issue

Re­
cently
offered

Aaa

Baa

Indus­
trial

Rail­
road

Public
utility

Pre­
ferred

Com­
mon

Com­
mon

Seasoned issues

1973

6.59
5.74
5.63
6.30

6.42
5.62
5.30
5.22

6.12
5.22
5.04
4.99

6.75
5.89
5.60
5.49

8.68
7.62
7.31
7.74

8.71
7.66
7.34
7.75

8.51
7.94
7.63
7.80

8.04
7.39
7.21
7.44

9.11
8.56
8.16
8.24

8.26
7.57
7.35
7.60

8.77
8.38
7.99
8.12

8.68
8.13
7.74
7.83

7.22
6.75
7.27
7.23

3.83
3.14
2.84
3.06

6.46
5.41
5.50

1973—Jun e
Ju ly.......
Aug........
Sept.........
Oct..........
Nov........
Dec.........

6.32
6.53
6.81
6.42
6.26
6.31
6.35

5.25
5.44
5.51
5.13
5.03
5.21
5.14

5.05
5.21
5.26
4.90
4.76
5.03
4.90

5.51
5.71
5.80
5.41
5.31
5.46
5.43

7.64
8.01
8.36
7.88
7.90
7.90
8.00

7.64
7.97
8.22
7.99
7.94
7.94
8.04

7.69
7.80
8.04
8.06
7.96
8.02
8.05

7.37
7.45
7.68
7.63
7.60
7.67
7.68

8.13
8.24
8.53
8.63
8.41
8.42
8.48

7.49
7.59
7.91
7.89
7.76
7.81
7.84

8.07
8.17
8.32
8.37
8.24
8.28
8.28

7.69
7.81
8.06
8.09
8.04
8.11
8.17

7.25
7.35
7.43
7.38
7.18
7.40
7.76

3.06
3.04
3.16
3.13
3.05
3.36
3.70

6.93

1974—Ja............n
Feb.........
Mar........
Apr........
May
June.. . .

6.56
6.54
6.81
7.04
7.07
7.03

5.23
5.25
5.44
5.76
6.09
6.17

5.03
5.05
5.20
5.45
5.89
5.95

5.49
5.49
5.71
6.06
6.30
6.41

8.21
8.12
8.46
8.98
9.24
9.38

8.22
8.23
8.44
8.94
9.13
9.36

8.15
8.17
8.27
8.50
8.68
8.85

7.83
7.85
8.01
8.25
8.37
8.47

8.58
8.59
8.65
8.88
9.10
9.34

7.97
8.01
8.12
8.39
8.55
8.69

8.34
8.27
8.35
8.51
8.73
8.89

8.27
8.33
8.44
8.68
8.86
9.08

7.60
7.47
7.56
7.83
8.11
8.25

3.64
3.81
3.65
3.86
4.00
4.02

7.11
7.09
7.02
7.08

6.00
6.11
6.06
6.06

5.80
5.90
5.90
5.90

6.25
6.40
6.30
6.30

9.27
9.27
9.23
9.34

9.15
9.11
9.13
9.10

8.62
8.64
8.67
8.71

8.34
8.38
8.36
8.38

8.99
9.02
9.07
9.16

8.52
8.56
8.53
8.56

8.64
8.69
8.73
8.77

8.76
8.77
8.83
8.89

8.04
8.08
8.12
8.10

3.90
3.91
3.96
4.12

7.06
7.04
6.99
7.01
7.07

6.09
6.03
6.11
6.18
6.35

5.95
5.90
5.95
5.96
6.00

6.30
6.25
6.30
6.39
6.70

9.09
9.23
9.28
9.49
9.50

9.15
9.14
9.18
9.45
9.65

8.75
8.78
8.81
8.87
8.94

8.39
8.40
8.40
8.49
8.57

9.23
9.26
9.29
9.36
9.44

8.60
8.61
8.64
8.72
8.80

8.81
8.85
8.88
8.90
8.93

8.95
9.00
9.02
9.10
9.19

8.20
8.25
8.19
8.24
8.32

4.13
3.98
3.91
4.06
4.14

13

20

121

20

30

41

30

40

14

500

197 0
197 1
197 2

7.09
r8.37
8.95

Week ending—
1974—May

4.
11 .
18.
25.

June

1,
8,
15

22,
29

Number of
issues2. . .

1 Includes bonds rated Aa and A, data for which are not shown sep­
arately. Because of a limited number of suitable issues, the number
of corporate bonds in some groups has varied somewhat. As of Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2 Number of issues varies over time; figures shown reflect most recent
count.
N o t e . —Annual

yields are averages of monthly or quarterly data.

Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
Govt.: Averages of daily figures for bonds maturing or callable in 10 years
or more; from Treasury Dept. (2) State and local govt.: General obligations

500

only, based on Thurs. figures; from Moody’s Investor Service. (3) Cor­
porate: Rates for “New issue” and “Recently offered” Aaa utility bonds

are weekly averages compiled by the Board of Governors of the Federal
Reserve System. Rates for seasoned issues are averages of daily figures
from Moody’s Investors Service.
Stocks: Standard and Poor’s corporate series. Dividend/price ratios
are based on Wed. figures; earnings/price ratios are as of end of period.
Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and 2 public utility; common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates.

NOTES TO TABLES ON OPPOSITE PAGE:
Security Prices:
N o t e . —Annual

data are averages of monthly figures. Monthly and
weekly data are averages of daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on p. A-30 on basis of an assumed 3 per cent, 20-year
bond. Municipal and corporate bonds, derived from average yields as
computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks , derived from com­
ponent common stock prices. Average daily volume o f trading, normally
conducted 5 days per week for 5VS hours per day, or 27 VS hours per week.
In recent years shorter days and/or weeks have cut total weekly trading
to the following number of hours:




Stock Market Customer Financing:
1 Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (see
Dec. 1970 B u l l e t i n ) . Credit extended by brokers is end-of-month data
for member firms of the New York Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which ac­
counted for 60 per cent of security credit outstanding at banks on June 30,
1971.
2 In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise of subscription rights.
3 Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System’s list of Over the Counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated; at brokers, such stocks have no loan value.
4 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.

JU L Y 1974 □ S EC U R ITY M AR KETS

A 31

SECURITY PRICES
Common stock prices
New York Stock Exchange

Bond prices
(per cent of par)

Standard and Poor’s index
(1941-43= 10)

Period

U.S.
Govt.
(long­
term)

State
and
local

1970.........................
1971.........................
1972.........................
1973.........................

60.52
67.73
68.71
62.80

1973—June..............
July...............
Aug...............
Sept..............
Oct................
Nov...............
Dec...............
1974—Jan................
Feb...............
Mar...............
Apr...............
M ay..............
June..............

New York Stock Exchange index
(Dec. 31, 1965 = 50)

Volume of
Amer­
trading in
ican
stocks
Stock
(thousands of
Ex­
shares)
change
total
index
(Aug.
31,
1973 = NYSE AMEX
100)

Indus­
trial

Rail­
road

Public
utility

Total

Indus­ Trans­
porta­ Utility
trial
tion

Fi­
nance

72.3
80.0
84.4
85.4

61.6 83.22 91.29
65.0 98.29 108.35
65.9 109.20 121.79
63.7 107.43 120.44

32.13
41.94
44.11
38.05

54.48
59.33
56.90
53.47

45.72
54.22
60.29
57.42

48.03
57.92
65.73
63.08

32.14
44.35
50.17
37.74

37.24
39.53
38.48
37.69

54.64
70.38
78.35
70.12

10,532
17,429
16,487
16,374

3,376
4,234
4,447
3,004

62.61
60.87
58.71
61.81
63.13
62.71
62.37

85.8
83.2
82.2
86.2
86.9
85.6
86.1

64.4
63.8
61.0
61.3
62.1
62.1
62.9

104.75
105.83
103.80
105.61
109.84
102.03
94.78

117.20
118.65
116.75
118.52
123.42
114.64
106.16

34.35
35.22
33.76
35.49
38.24
39.74
41.48

54.37
53.31
50.14
52.31
53.22
48.30
45.73

55.14
56.12
55.33
56.71
59.26
54.59
50.39

60.52
61.53
61.09
62.25
65.29
60.15
55.12

33.72
34.22
33.48
35.82
39.03
36.31
34.69

37.95
37.68
35.40
36.79
37.47
34.73
33.47

63.52 92.60 12,796
68.95 97.67 14,655
68.26 99.23 14,761
72.23 101.88 17,320
74.98 107.97 18,387
67.85 99.91 19,044
62.49 88.39 19,227

2,316
2,522
1,796
2,055
3,388
3,693
3,553

60.66
60.83
58.70
57.01
56.81
57.11

85.2
85.3
83.5
80.2
77.3
73.2

62.3
62.0
61.3
60.3
59.7
59.5

96.11
93.45
97.44
92.46
89.67
‘89.79

107.18
104.13
108.98
103.66
101.17
101.62

44.37
41.85
42.57
40.26
37.04
37.31

48.60
48.13
47.90
44.03
39.35
37.46

51.39
50.01
52.15
49.21
47.35
47.14

55.77
54.02
56.80
53.95
52.53
52.63

36.85
36.26
38.39
35.87
33.62
33.76

35.89
35.27
35.22
32.59
30.25
29.20

64.80
62.81
64.47
58.72
52.85
51.20

95.32
95.11
99.10
93.57
84.71
82.88

16,506
13,517
14,745
12,109
12,512
12,268

2,757
2,079
2,123
1,752
1,725
1,561

56.84
57.03
57.38
57.25
56.76

77.1
77.1
77.1
76.1
74.3

59.6
59.7
59.7
59.5
59.1

87.49 98.83
90.81 102.61
92.22 104.33
88.80 100.59
87.32 98.94

35.24
37.46
38.53
37.11
36.23

37.99
39.00
38.64
36.45
35.76

46.04
47.77
48.48
46.63
45.66

51.18
53.17
54.06
52.15
51.16

32.29
34.13
34.86
33.51
32.56

29.30
29.96
29.93
28.61
28.80

50.74
52.91
53.81
50.55
47.53

81.54
83.84
85.29
82.34
80.06

11,831
14,917
\ 1,730
10,833
11,592

1,653
1,903
1,499
1,395
1,447

Cor­
porate
AAA

Total

96.63
113.40
129.10
103.80

Week ending—
1974—June

1.......
8 ...,
15........
22 . . . .
29 . .

For notes see opposite page.
STOCK MARKET CU STO M ER FIN ANCING
(In millions of dollars)
Margin credit at brokers and banks 1
Unregu­
lated 3

Regulated 2
End of period

By type

By source
Margin stock
Total

Brokers Banks

Convertible
bonds

Subscription
issues

Brokers Banks Brokers Banks Brokers Banks

Nonmargin
stock
credit at
banks

Free credit balances
at brokers 4

Margin
accts.

Cash
accts.

1973—May.
June.
July..
Aug..
Sept..
Oct..
Nov..
D ec..

7,650
7,369
7,299
7,081
6,954
7,093
r6,774
6,382

6,784
6,416
6,243
6,056
5,949
5,912
5,671
5,251

866
953
1,056
1,025
1,005
1,181
1,003
1,131

6.540
6,180
6,010
5,830
5,730
5,690
5,460
5,050

802
885
976
949
929
1,105
1,027
1,070

224
215
216
210
204
203
197
189

47
53
64
61
60
59
60
46

20
21
17
16
15
19
14
12

1,992
1,973
1,957
1,952
1,909
1,878
1,917
1,866

413
396
379
348
379
419
464
454

1,564
1,472
1,542
1,462
1,632
1,713
1,685
1,700

1974—Jan...
Feb..
Mar..
A pr..
May.

6,343
6,462
6,527

5,323
5,423
5,519
5,558
5,368

1,020
1,039
1,008

5,130
5,230
5,330
5,370
5,180

961
977
944

182
183
180
179
179

45
46
48

11
10
9
9
9

1,799
1,843
1,869

442
420
424
r415
395

1,666
1,604
1,583
1,438
1,420

For notes see opposite page.




A 32

STO CK M AR KET CR ED IT: SAVINGS IN S TITU TIO N S □ JU L Y 1974

EQUITY STA T U S O F M ARGIN A C C O U N T DEBT
AT B R O K E R S

SPEC IA L M ISC E LL A N E O U S A C C O U N T BALANCES
AT BR O K ER S, BY EQUITY STA TU S O F A C C O U N T S

(Per cent of total debt, except as noted)

(Per cent of total, except as noted)

End of
period

Total
debt
(mil­
lions
of
dol­
lars)1

1973—May.
June.
July..
Aug..
Sept..
Oct. .
Nov..
D ec..
1974—Jan...
Feb...
Mar..
A p r..
May.

Equity class (per cent)
Net
credit
status

End of period
80 or
more

70-79

60-69

50-59

40-49

Under
40

6,540
6,180
6,010
5,830
5,730
5,690
5,460
5,050

4.9
4.9
5.8
5.0
5.0
7.2
5.4
5.8

7.2
7.1
8.8
8.4
13.9
10.0
6.1
7.7

12.7
13.2
17.7
16.4
18.9
19.9
12.0
14.4

18.7
17.5
22.7
19.6
23.9
22.6
16.9
17.4

21.9
22.1
25.3
24.2
23.5
22.1
19.5
20.3

34.9
35.3
19.7
26.4
16.8
18.2
40.1
34.2

5,130
5,230
5,330
5,370
5,180

5.5
5.4
5.0
4.4
4.2

8.0
7.4
7.0
6.0
5.1

14.2
13.3
11.4
9.9
8.5

22.6
22.6
19.4
16.5
13.7

25.8
28.0
30.2
26.5
23.3

24.0
23.3
27.1
37.0
45.3

l Note 1 appears at the bottom of p. A-30.
N o t e . —Each customer’s equity in his collateral (market value of col­
lateral less net debit balance) is expressed as a percentage of current col­
lateral values.

Equity class of accounts
in debit status

Total
balance
60 per cent Less than of(millions
dollars)
or more 60 per cent

1973—May.....................
June.....................

35.8
35.8
35.9
35.9
37.4
38.5
37.5
39.4

45.0
43.5
46.7
45.6
53.1
46.7
42.2
40.0

19.1
20.7
17.4
18.5
9.4
14.8
20.3
20.6

5,670
5,750
5,740
5,650
5,740
5,860
5,882
5,935

1974—Jan.......................
Feb.......................

38.3
39.4
40.0
39.6
37.8

42.7
43.3
41.2
42.3
40.0

18.0
24.9
18.9
19.4
22.2

6,596
6,740
6,784
6,526
6,544

May.....................

N o t e . —Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer’s margin account or deposits of cash (usually
sales proceeds) occur.

MUTUAL SAVINGS BANKS
(In millions of dollars)
Loans

End of period

Mort­
gage

Other

Securities

U.S.
Govt.

State
and
local
govt.

Mortgage loan
commitments
classified by maturity
(in months)

Total
assets—
Total
Other liabili­
ties
assets
and
general
reserve
accts.

Depos­
its

1,270
1,389
1,644

1,471 78,995
1,711 89,369
2,117 100,593

71,580
81,440
91,613

1,690
1,810
2,024

5,726
6,118
6,956

619
1,047
1,593

Corpo­ Cash
rate
and
other1

Other General
liabili­ reserve
ac­
ties
counts
3 or
less

3-6

6-9

Over
9

Total

197 0
197 1
19723..........

57,775
62,069
67,563

2,255
2,808
2,979

3,151
3,334
3,510

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

69,426
69,988
70,637
71,219
71,713
72,034
72,367
72,760
73,231

3,831
4,099
3,959
3,819
3,986
4,200
4,181
4.424
3,871

3,388
3,376
3,346
3,190
3,037
2,945
3,007
2,948
2,957

1,080
1,076
1,125
1,093
999
957
939
925
926

22,598
22,615
22,562
22,683
22,277
21,799
21,276
21,150
21,383

1,582
1,629
1,775
1,555
1,551
1,491
1,501
1,519
1,968

2,089
2,116
2,273
2,202
2,227
2,345
2,285
2,264
2,314

103,994
104,899
105,677
105,761
105,789
105,771
105,557
105,991
106,651

94,217
94,744
95,706
95,355
94,882
95,183
94,944
95,259
96,496

2,589
2,904
2,650
3,044
3,496
3,134
3,139
3,201
2,566

7,189
7,251
7,321
7,362
7,411
7,453
7,474
7,530
7,589

1,904
1,792
913
1,711 1,020
1,626
906
1.302
840
1,411
762
1,318
771
1,272
685
598
1,250

725
712
573
636
718
589
510
479
405

1,395
1,406
1,378
1,367
1,315
1,197
1,096
1,079
1,008

4,912
4,824
4,683
4,535
4,174
3,959
3,695
3,515
3,261

1974—Jan ..
Feb..
Mar.
Apr..

73,440
73,647
73,957
74,181

4,161
4,584
4,825
4.425

2,925
2,846
2.851
2.852

936
942
934
951

21,623
21,923
22,302
22,366

1,686
1,618
1,634
1,601

2,312
2,316
2,373
2,347

107,083
107,877
108,876
108,722

96,792
97,276
98,557
98,035

2,665
2,919
2,595
2,943

7,626
7,681
7,724
7,744

1,171
1,232
1.302
1,214

439
407
413
401

998
952
929
994

3,196
3,153
3,168
3,193

197 12,876
385 17,674
873 21,906

1 Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2 Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans beginning with Aug. 1967.
3 Balance sheet data beginning 1972 are reported on a gross-of-valuation-reserves basis. The data differ somewhat from balance sheet data
previously reported by National Assn. of Mutual Savings Banks which




322
627
713

587
562
525
584

302
688 1,931
463 1,310 3,447
609 1,624 4,539

were net of valuation reserves. For most items, however, the differences
are relatively small.
N o t e . — N A M S B data; figures are estimates for all savings banks in
the United States and differ somewhat from those shown elsewhere in
the B u l l e t i n ; the latter are for call dates and are based on reports filed
with U.S. Govt, and State bank supervisory agencies.

JU L Y 1974 □ SAVINGS IN S T IT U T IO N S

A 33

LIFE INSURANCE COMPANIES
(In millions of dollars)

Government securities
Total
assets

End of period

Business securities

United State and Foreign 1
States
local

Total

Total

Bonds

Stocks

Mort­
gages

Real
estate

Policy
loans

Other
assets

1970........................................ 207,254
1971......................................... 222,102
1972........................................ 239,730

11,068
11,000
11,372

4,574
4,455
4,562

3,306
3,363
3,367

3,188 88,518
3,182 99,805
3,443 112,985

73,098
79,198
86,140

15,420
20,607
26,845

74,375
75,496
76,948

6,320
6,904
7,295

16,064
17,065
18,003

10,909
11,832
13,127

1973—Apr . r ........................... 242,290
M ay............................. 243,589
June............................. 244,531
July.............................. 247,082
Aug.............................. 247,655
Sept.............................. 250,203
Oct............................... 251,590
Nov.............................. 251,055
Dec.............................. 252,071

11,371
11,434
11,359
11,427
11,416
11,404
11,402
11,462
11,376

4,513
4,538
4,468
4,480
4,462
4,424
4,423
4,471
4,586

3,347
3,384
3,373
3,427
3,433
3,439
3,438
3,444
3,449

3,511
3,512
3,518
3,520
3,521
3,541
3,541
3,547
3,545

115,117
115,897
116,153
118,061
117,842
119,200
119,714
118,016
117,733

89,690
90,314
90,484
91,144
91,342
91,480
91,707
91,847
91,452

25,427
25,583
25,669
26,917
26,500
27,720
28,007
26,169
26,281

77,278
77,400
77,914
78,243
78,657
79,040
79,516
80,191
81,180

7,516
7,545
7,548
7,577
7,632
7,677
7,765
7,838
7,769

18,425
18,533
18,673
18,841
19,181
19,511
19,768
19,926
20,076

12,583
12,780
12,884
12,933
12,927
13,371
13,425
13,622
13,937

1974—Jan...............................
Feb...............................
Mar..............................
Apr..............................

11,465
11,535
11,766
11,594

4,410
4,429
4,595
4,317

3,463
3,518
3,511
3,526

3,592
3,588
3,660
3,751

119,079
119,715
119,936
120,466

93,082
93,672
94,037
95,010

25,997
26,043
25,899
25,456

81,490
81,745
81,971
82,469

7,816
7,825
7,831
7.795

20,242
20,382
20,538
20,830

13,439
13,537
13,805
13,429

253,531
254,739
255,847
256,583

1 Issues of foreign governments and their subdivisions and bonds of
Figures are annual statement asset values, with bonds carried on an
the International Bank for Reconstruction and Development.
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
N o t e . — Institute of Life Insurance estimates for all life insurance
values are not made on each item separately but are included, in total in
companies in the United States.
“Other assets.”

SA VINGS A N D LOAN A SSO C IA T IO N S
(In millions of dollars)
Assets
End of period
Mort­
gages

Invest­
ment
secur­
ities 1

Cash

Other

Total
assets—
Total
liabilities

9,326
10,731
12,590
19,227

Liabilities

Mortgage
loan com­
mitments
outstanding
at end of
period4

Savings
capital

Net
worth 2

Bor­
rowed
money 3

Loans
in
process

176,183
206,023
243,127
272,358

146,404
174,197
206,764
227,254

12,401
13,592
15,240
17,108

10,911
8,992
9,782
17,100

3,078
5,029
6,209
4,676

3,389
4,213
5,132
6,220

4,452
7,328
11,515
9,532

Other

1970..................................
1971..................................
1972..................................
19733................................

150,331
174,250
206,182
232,104

1973—May.......................
June.......................
July.......................
Aug.......................
Sept.......................
Oct.........................

219,283
222,580
225,265
227,778
229,182
230,195
231,089
232,104

23,930
23,220
22,628
21,001
20,025
20,618
21,220
21,027

17,873
17,920
18,296
18,704
19,008
19,295
19,449
19,227

261,086
263,720
266,189
267,483
268,215
270,108
271,758
272,358

218,351
221,624
221,399
220,243
222,086
223,033
224,304
227,254

16,415
16,225
16,550
16,896
16,782
17,041
17,330
17,108

11,689
12,698
14,226
15,634
16,255
16,435
16,312
17,100

6,711
6,754
6,686
6,449
6,064
5,535
5,011
4,676

7,920
6,419
7,328
8,261
7,028
8,064
8,801
6,220

15,068
14,705
13,710
12,249
10,799
9,909
9,717
9,532

1974—Jan......................... 232,980
Feb........................ 234,426
Mar....................... 236,514
Apr........................ 239,027
May*..................... 241,717

22,378
23,327
23,970
23,520
23,695

19,502
19,901
20,429
20,902
21,550

274,860
277,654
280,913
283,449
286,962

229,435
231,264
235,436
235,218
235,754

17.333
17,623
17,488
17,763
18,075

16,663
16,431
16,652
18,087
19,320

4,380
4,304
4,492
4,807
5,049

7,049
8,032
6,845
7,574
8,764

9,788
10,740
12,018
12,933
12,412

Dec........................

13,020
3,506
18,185
2,857
21,574
2,781
21,027

1 Excludes stock of the Federal Home Loan Bank Board. Compensating
changes have been made in “Other assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Advances from FHLBB and other borrowing.
4 Data comparable with those shown for mutual savings banks (on
preceding page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
Home Loan Mortgage Corporation, loans and notes insured by the
Farmers Home Administration and certain other Government-insured
morgtage-type investments, previously included in mortgage loans, are




included in other assets. The effect of this change was to reduce the mort­
gage total by about $0.6 billion.
Also, GNMA-guaranteed, mortgage-backed securities of the pass­
through type, previously included in cash and investment securities are
included in other assets. These amounted to about $2.4 billion at the end
of 1972.
N o t e . — FHLBB data; figures are estimates for all savings and loan
assns. in the United States. Data are based on monthly reports of insured
assns. and annual reports of noninsured assns. Data for current and
preceding year are preliminary even when revised.

A 34

FEDERAL FINANCE □ JULY 1974
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions o f dollars)
U.S. budget

Means o f financing

Borrowings from the public 1

Less: Cash and
monetary assets

Surplus
Less: Invest­
or
Public
Receipts Outlays
ments by Govt,
deficit
debt Agency
accounts
Less: Equals:
securi­ securi­
Special Total
(-)
notes 2
ties
ties
Special Other
issues

Period

Fiscal year:
197 0
197 1
197 2
197 3

193,743
188,392
208,649
232,225

196,588
211,425
231,876
246,526

-2,845
-23,033
-23,227
-14,301

Half year:
1972—Jan.-June
July-Dee.
1973—Jan.-June
July-Dee.

115,549
106,062
126,164
124,253

120,319
118,579
127,940
130,360

-4 ,8 5 0 3,130
-12,517 22,038
-1 ,7 7 6 8,844
-6 ,1 0 7 11,756

Month:
1973—M ay' . . . .
June........
July.........
Aug.........
Sept.........
Oct..........
Nov.........
Dec.........

M6,576 r 19,994
28,504 20,892
18,121 22,607
21,291 22,139
25,007 20,736
17,637 23,092
20,208 22,099
21,987 19,686
23,476
20,226
16,818
29,657
19,243

1974—Ja n
Feb..........
Mar.........
Apr.........
M ay.......

23,671
21,030
22,905
22,273
23,981

-3,419
7,612
-4,486
-847
4,271
-5,455
-1,891
2,302

17,198 -1,739 9,386
27,211
-347 6,616
29,131 -1,269 6,813
30,881
216 12,029

275
803
862
2,842
-406
1,037
1,561
5,861

-195 -1,714
-8 0 4 2,503
-6,086 3,813
7,384 -2,597
-4,739 2,773

Trea­
sury
operat­
ing
balance

Other

Other
means
of
financ­
ing,
net3

676
800
1,607
-207

5,397
19,448
19,442
19,275

2,151
710
1,362
2,459

-581
-9 8 2
-979 3,586
1,108 6,255
-1,613 -4 ,1 2 8

1,089
-823
654
824

-2 ,1 1 4
17,386
1,889
6,013

-1,189
956
1,503
-2,202

2,497 8,377
-1,520 -5 ,4 3 4
1,302
-191 -2 ,2 9 9

234
-4 3
1,968
68 3,411
-171
9 1,258
325
301 3,137
568
40 -756
-173
29 -306
-22
273 -3,510 3,141
-1 7 4 5,574 -3,016

-1 ,9 7 0
-2 ,3 6 9
-713
-563
564
1,395
2,202
3,128

-5,924
4,344
-5,398
-4,105
5,207
-2,588
-1,010
5,693

r3,523 >■2,986
414 -485
-5 4 4
-743
151 -2 ,5 4 4
346
718
-4 3
1,431
- 4 8 -1 ,3 6 8
-5 4
209

-773
-1 6 2
4,309
-2 ,5 0 2

168
-2,877
690
3,125
-5,032

544 1,681
- 8 4 -1 ,9 9 5
191 2,657
1,319 -4 3 8
1,120 -1 ,4 2 3

-150
876
-660
477

12
-1 7
394
37
-2 8

4,010
6,351
5,790
5,396

-984
2,478
-164
-115
2,936

55
169
61
57
-2 0 0

Selected balances
Treasury operating balance
End
of
period
F.R.
Banks

Tax
and
loan

accounts

Other
deposi­
taries4

Borrowing from the public.

Total

Public
debt
securities

Agency
securities

Less:
Investments of
Govt, accounts
Special
issues

Other

Less:
Special
notes2

Equals:
Total

Memo:
Debt of
Govt.sponsored
corps.—
Now
private 5

Fiscal year:
1970........................
1971.........................
1972.........................
1973........................

1,005
1,274
2,344
4,038

6,929
7,372
7,934
8,433

111
109
139
106

8,045
8,755
10,117
12,576

370,919
398,130
427,260
458,142

12,510
12,163
10,894
11,109

76,124
82,740
89,539
101,738

21,599
22,400
24,023
24,093

825
825
825
825

284,880
304,328
323,770
343,045

35,789
36,886
41,044
51,325

Calendar year:
1972.........................
1973.........................

1,856
2,543

8,907
7,760

310
70

11,073
10,374

449,298
469,898

11,770
11,586

95,924
107,135

23,164
24,467

825
825

341,155
349,058

43,459
59,857

Month:
1973—May.............
June.............
July..............
Aug.............
Sept.............
Oct...............
Nov..............
Dec..............

3,242
4,038
2,867
847
1,626
1,839
1,945
2,543

4,679
8,433
4,203
2,217
6,582
3,781
2,666
7,760

311
106
108
8
71
71
70
70

8,232
12,576
7,178
3,072
8,279
5,691
4,681
10,374

457,338
458,142
459,003
461,845
461,439
462,476
464,037
469,898

11,041
11,109
11,118
11,419
11,459
11,488
11,760
11,586

'98,327
101,738
102,996
106,133
105,378
105,071
101,561
107,135

'23,814
24,093
23,968
24,536
24,362
24,241
27,482
24,467

825
825
825
825
825
'825
825
825

345,414
343,045
342,332
341,769
342,333
343,727
345,930
349,058

49,731
51,325
52,780
54,409
56,691
59,330
59,317
59,857

1974—Jan...............
Feb...............
Mar..............
Apr..............
May.............

2,844
2,017
1,372
2,814
3,134

7,628
5,579
6,915
8,576
3,226

69
69
69
89
88

10,542
7,665
8,356
11,480
6,448

468,184
470,687
474,500
471,903
474,675

11,598
11,581
11,975
12,012
11,984

106,151
108,629
108,465
108,350
111,286

24,521
24,691
24,752
24,809
24,609

825
825
825
825
825

348,285
348,123
352,433
349,931
349,939

59,566
59,282
59,897
61,151

1 The decrease in Federal securities resulting from conversion to private
ownership of Govt.-sponsored corporations (totaling $9,853 million) is
not included here. In the bottom panel, however, these conversions de­
crease the outstanding amounts of Federal securities held by the public
mainly by reductions in agency securities. The Federal National Mortgage
Association (FNMA) was converted to private owership in Sept. 1968 and
the Federal intermediate credit banks (FICB) and banks for coopera­
tives in Dec. 1968.
2 Represents non-interest-bearing public debt securities issued to the
International Monetary Fund and international lending organizations.
New obligations to these agencies are handled by letters of credit.




3 Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
4 As of Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded “Other deposi­
taries” (deposits in certain commercial depositaries that have been con­
verted from a time to a demand basis to permit greater flexibility in
Treasury cash management).
5 Includes debt of Federal home loan banks, Federal land banks, R.F.K.
Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks
for cooperatives (both beginning Dec. 1968).
N ote.—H alf years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

JU L Y 1974 □ FEDERAL FINANCE

A 35

FEDERAL FISCAL OPERATIONS: DETAIL
(In millions o f dollars)
Budget receipts

Period

Total

Pres.
Elec­
With­ tion Non­
Re­
held Cam­ with­
funds
paign held
Fund1

Fiscal year:
197 0
197 1
197 2
197 3

193,743
188,392
208,649
232,225

Half year:
1972—Jan .-Ju n e...
July-Dee.. ..
1973—Jan.-June. ..
July-Dee.. ..

115,469 44,751
106,062 46,056
126,165 52,034
124,253 52,961

Month:
1973—May.............
June.............
July..............
Aug.............
Sept..............
Oct...............
Nov..............
Dec...............

r16,576
28,537
18,121
21,291
25,007
17,637
20,209
21,987

77,416
76,490
83,200
98,093

26,236
24,262
25,679
27,019

Employment
taxes and
contributions2
Un- Other Net
Gross Re­
re­ funds
empl. net
re­
total
ceipts
Pay­ Self- insur. ceipts 3
roll empl.
taxes

Net
total

1,444 6,433 3,825 1,219
597 12,306 8,983
3,735
354 8,814 1,552
681
904
451
257 9,279
3,903
135 11,707 5,477
550
71 9,230 1,515
939
261
66 10,006
362
115 9,134 6,201
5,076
945
2,186
11,118
1,204

1974—Jan................... 23,476 9,296
Feb................... 20,226 9,505
Mar.................. 16,818 9,662
Apr.................. 29,657 9,946
May................. 19,243 10,083

Excise Cus­
taxes toms

Estate Misc.
«**/4
ana
re­
gift ceipts4

45,298
48,578
53,914
64,542

15,705
16,614
15,477
16,260

2,430
2,591
3,287
3,188

3,644
3,735
5,436
4,917

3,424
3,858
3,633
3,921

24,445 1,877 4,736 1,764 30,925
22,493
165 2,437 1,773 26,867
30,013 2,206 3,616 1,841 37,675
29,965
201 2,974 1,967 35,109

6,516
8,244
8,016
8,966

1,449
1,551
1,637
1,633

3,041
2,333
2,584
2,514

1,915
2,059
1,865
2,768

13,240 90,412 35,037 2,208 37,190
14,522 86,230 30,320 3,535 39,751
14,143 94,737 34,926 2,760 44,088
21,866 103,246 39,045 2,893 52,505

20,090 13,569 51,272 21,664 1,312
5,784
688 51,152 15,315 1,459
21,235 21,179 52,091 23,730 1,434
999 58,170 16,589 1,494
6,207

8,814
9,168
8,487
9,085
7,940
8,752
9,811
8,887

Social insurance taxes
and contributions

Corporation
income taxes

Individual income taxes

45
1,851
8,631
6,313
5,651

14,327
8,601
3,219
14,764
5,641

1,722
1,066
5,887
5,893
1,318

1,942
1,948
2,032
2,371

3,465
3,673
4,357
6,051

2,700
3,206
3,437
3,614

296
188
202
209
230
462
287
105

6,662
4,548
4,608
7,087
4,812
4,119
5,578
3,760

253 2,156
145
95
382
1,357
177
103
24
217
825
89

308
293
346
333
317
351
321
299

9,380
5,081
5,336
8,778
5,409
4,712
6,724
4,149

1,446
1,386
1,538
1,434
1,436
1,459
1,563
1,536

280
273
276
303
238
291
301
224

466
335
398
494
373
454
462
333

'255
360
409
308
597
437
501
515

160
248
338
430
218

4,439
244
170
7,080
214
761
5,059
228
96
4,390 1,603
552
7,196
311 2,190

378
346
338
351
339

5,232
8,400
5,721
6,896
10,036

1,263
1,315
1,211
1,275
1,391

304
239
277
286
295

455
423
465
371
437

334
429
377
602
343

Budget outlays

Period

Total

Na­
tional
de­
fense

Intl.
affairs

Space
re­
search

Nat­ Com­
merce
ural
Agri­
and
re­
cul­
ture sources transp.

Com.
mun.
deve­
lop.
and
hous­
ing

Educa­
tion Health
and
and
man­
wel­
power
fare

4,216 10,198 81,536 10,747
4,162 10,821 91,230 12,004
5,450 10,819 108,263 13,285
5,667 11,537 126,353 13,612

20,584
22,785
27,754
29,122

4,889
-7,858
5,619 76,636 -8,378
6,800 6,147 -9,963
6,774 6,174 -10,717

43,405
43,212
48,018
48,978

5,744
5,740
6; 264
6,518

10,534
10,619
12,181
13,440

2,497
2,869
2,749
3,088

3,786
3,182
3,886
4,103

3,422
3,311
3,177
3,272

7,061
6,051
4,039
2,729

3,759
556
609
3,128

11,197
12.520
13.521
13,400

Half year:
1972—Jan.-June. 120,319 42,583
July-Dee.. 118,578 35,229
1973—Jan.-June. 127,940 40,677
July-Dee.. 130,360 37,331

2,034
1,639
1,542
1,617

1,645
1,676
1,635
1,501

1,062
4,616
1,435
3,472

1,807
330
227
763

5,167
6,199
6,320
7,387

2,035
2,637
1,525
3,215

136

-155
-126
2,011
440
-3 5
503
782
-228

298
118
942
573
422
416
424
-1 3 0

'669
1,434
2,104
1,090
957
1,260
912
1,064

-148
309
911
779
712
561
36
316

1,066 *•8,142
1,336 8,234
777 7,792
954 7,935
661 8,302
955 8,040
805 8,373
619 8,534

1,017
866
1,099
1,054
970
1,058
1.194
1,143

2,165
2,004
2,184
2,159
2,392
2,135
2,401
2,169

'443
452
563
466
643
479
438
498

756 -544
138
58
759
205
89 -1,618
313
428

886
363
746
740
875

331
198
263
373
352

983 9,067
932 8,979
1,036 9,310
925 9,505
662 10,087

1,204
1,088
1.194
1,165
1,180

2,353
2,466
2,508
2,455
2,516

636
520
499
586
498

1974—Ja............. n
Feb..........
Mar.........
Apr..........
M ay........

19,994 '6,482
20,814 8,015
22,607 4,878
22,139 6,772
20,736 6,095
23,092 6,607
22,099 6,900
19,686 6,079

486
308
327
205
282
276
219

255
301
278
262
246
248
246
221

6,793
6,509
6,686
6,751
7,243

351
224
345
336
312

251
231
252
293
278

23,671
21,030
22,904
22,273
23,981

1 Collections of these receipts, totaling $2,427 million for fiscal year
1973, were included as part of nonwithheld income taxes prior to Feb.
1974.
2 Old-age, disability, and hospital insurance, and Railroad Retirement
accounts.
3 Supplementary medical insurance premiums and Federal employee
retirement.contributions.
4 Deposits of earnings by Federal Reserve Banks and other miscellane­
ous receipts.
5 Consists of Government contributions for employee retirement and
of interest received by trust funds.




Intragovt.
trans­
ac­
tions 5

Gen­
eral
govt.

Fiscal year:
197 2
231,876 78,336
197 3
246,526 76,027
19746.................. 274,660 80,573
19756................... 304,445 87,729

Month:
1973—May' ’
June........
July.........
Aug.........
Sept.........
Oct...........
Nov.........
Dec..........

Gen­
eral
reve­
nue
shar­
ing

Inter­
est

Vet­
erans

5,843
5,133
5,r ~
4,772

-4,036
2,617 -4,039
4,019 -4,339
3,032 -4,753

1,495
-3
16
1,494
29
1,532
1
1,540
1

-3 7 7
-2,616
-8 5 0
-6 7 0
-849
-8 5 0
-717
-8 1 6
-929
-6 7 7
-898
-8 6 7
-763

6 Estimates presented in the Jan. 1975 Budget Document. Breakdowns do
not add to totals because special allowances for contingencies, Federal
pay increase (excluding Department of Defense), and acceleration of energy
research and development, totaling $300 million for fiscal 1974, and $1,561
million for fiscal 1975, are not included.
7 Contains retroactive payments of $2,617 million for fiscal 1972.
N ote.—H alf years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

A 36

U.S. GO VER N M EN T SEC U R ITIES □ JU L Y 1974
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions o f dollars)

Public issues

End of period

Total
gross
public
debt 1

Marketable
Total
Total

Certifi­
cates

Bills

Notes

Con­
vert­
ible
Bonds 2 bonds

Nonmarketable
Sav­
Foreign
ings
Total 3 issues 4 bonds
& notes

Special
issues 5

1967—Dec.
1968—Dec.
1969—Dec.

344.7
358.0
368.2

284.0
296.0
295.2

226.5
236.8
235.9

69.9
75.0
80.6

61.4
76.5
85.4

95.2
85.3
69.9

2.6
2.5
2.4

54.9
56.7
56.9

3.1
4.3
3.8

51.7
52.3
52.2

57.2
59.1
71.0

1970—Dec.
1971—Dec..
1972—Dec.

389.2
424.1
449.3

309.1
336.7
351.4

247.7
262.0
269.5

87.9
97.5
103.9

101.2
114.0
121.5

58.6
50.6
44.1

2.4
2.3
2.3

59.1
72.3
79.5

5.7
16.8
20.6

52.5
54.9
58.1

78.1
85.7
95.9

1973—June.
July.
Aug.
Sept.
O ct.,
Nov.
Dec.

458.1
459.0
461.8
461.4
462.5
464.0
469.9

354.6
354.2
353.8
354.1
355.5
360.5
360.7

263.0
262.7
262.4
262.4
264.0
270.2
270.2

100.1
99.9
101.8
99.8
101.6
107.7
107.8

117.8
117.8
118.7
120.7
120.7
124.6
124.6

45.1
45.0
42.0
41.9
41.8
37.8
37.8

2.3
2.3
2.3
2.3
2.3
2.3
2.3

89.4
89.2
89.1
89.5
89.2
88.0
88.2

28.5
28.2
27.9
28.2
27.8
26.1
26.0

59.9
60.2
60.3
60.3
60.5
60.8
60.8

101.7
103.0
106.1
105.4
105.1
101.6
107.1

1974—Jan..
Feb.
Mar.
Apr.
May
June

468.2
470.7
474.5
471.9
474.7
475.1

360.1
360.0
364.2
361.7
361.5
357.8

270.1
269.7
273.6
270.5
269.6
266.6

107.8
107.9
111.9
107.3
107.9
105.0

124.6
126. 1
126.1
127.6
128.4
128.4

37.7
35.7
35.6
35.5
33.2
33.1

2.3
2.3
2.3
2.3
2.3
2.3

87.7
88.1
88.3
89.0
89.6
89.0

25.3
25.4
25.2
25.7
26.0
25.9

61.0
61.3
61.6
61.9
62.1
62.4

106.2
108.6
108.5
108.4
111.3
115.4

1 Includes non-interest-bearing debt (of which $617 million on June 30,
1974, was not subject to statutory debt limitation).
2 Includes Treasury bonds and minor amounts of Panama Canal and
postal savings bonds.
3 Includes (not shown separately): depositary bonds, retirement plan
bonds, and Rural Electrification Administration bonds.

4 Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency-series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
N o t e . —Based on Daily Statement of U.S. Treasury. See also second
paragraph in N o t e to table below.

O W N E R S H IP O F P U B L IC DEBT
(Par value, in billions of dollars)
Held by private investors

Held b y Total
gross
public
debt

U.S.
Govt.
agencies
and
trust
funds

F.R.
Banks

Total

1967—Dec................
1968—Dec................
1969—Dec................

344.7
358.0
368.2

73.1
76.6
89.0

49.1
52.9
57.2

1970—Dec................
1971—Dec................
1972—Dec................

389.2
424.1
449.3

97.1
106.0
116.9

1973—May...............
June..............
July...............
Aug...............
Sept...............
Oct.................
Nov...............
Dec................

457.3
458.1
459.0
461.8
461.4
462.5
464.0
469.9

1974—Jan.................
Feb................
Mar...............
Apr................
M ay..............

468.2
470.7
474.5
471.9
474.7

End of
period

Foreign
and
inter­
national 1

Other
misc.
inves­
tors 2

22.3
23.3
29.0

15.8
14.3
11.2

19.9
21.9
25.0

52.1
54.4
57.7

29.1
18.8
16.2

20.6
46.9
55.3

19.9
15.6
17.0

28.6
28.8
28.4
27.7
29.0
28.5
28.9
29.2

59.2
59.5
59.7
59.8
59.8
60.0
60.3
60.3

16.5
16.4
17.0
17.2
17.3
17.0
16.9
16.9

61.1
60.2
59.7
59.2
58.5
57.5
56.2
55.6

18.4
16.6
15.8
17.3
18.9
17.9
18.9
19.3

29.9
30.7
30.4
30.1
29.2

60.5
60.8
61.1
61.4
6 ,.7

16.9
17.0
17.3
17.8
18.3

52.8
53.6
54.9
55.9
57.3

21.1
21.2
20.0
19.7
18.5

Mutual
savings
banks

Insur­
ance
com­
panies

Other
corpo­
rations

State
and
local
govts.

222.4
228.5
222.0

63.8
66.0
56.8

4.2
3.8
3.1

9.0
8.4
7.6

12.2
14.2
10.4

24.1
24.9
27.2

51.2
51.9
51.8

62.1
70.2
69.9

229.9
247.9
262.5

62.7
65.3
67.7

3.1
3.1
3.4

7.4
7.0
6.6

7.3
11.4
9.8

27.8
25.4
28.9

120.1
123.4
125.0
128.7
127.8
127.4
127.1
129.6

74.1
75.0
77.1
76.1
76.2
78.5
77.1
78.5

263.1
259.7
256.9
257.1
257.4
256.5
259.8
261.7

58.9
58.8
56.5
55.1
55.4
56.3
58.5
60.3

3.3
3.3
3.1
2.9
2.9
2.9
2.9
2.9

6.3
6.3
6.4
6.3
6.3
6.3
6.2
6.4

10.8
9.8
10.3
11.5
9.2
10.2
11.1
10.9

128.7
131.3
131.2
131.1
113.9

78.2
78.2
79.5
80.0
81.4

261.2
261.1
263.8
260.7
259.4

60.2
58.2
59.5
56.8
54.8

2.8
2.8
2.8
2.7
2.6

6.3
6.0
6.1
5.9
5.8

10.7
10.9
11.7
10.5
11.2

1 Consists of investments of foreign and international accounts in
the United States.
2 Consists of savings and loan assns., nonprofit institutions, cor­
porate pension trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
N o t e . —Reported data for F.R. Banks and U.S. Govt, agencies and
trust funds; Treasury estimates for other groups.




Individuals

Com­
mercial
banks

Other
Savings
bonds securities

The debt and ownership concepts were altered beginning with the
Mar. 1969 B u l l e t i n . The new concepts (1) exclude guaranteed se­
curities and (2) remove from U.S. Govt, agencies and trust funds
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts.

JU L Y 1974 □ U.S. G O VER N M EN T S EC U R ITIES

A 37

O W N E R S H IP O F M ARKETABLE S E C U R IT IE S , BY MATURITY
(Par value, in millions of dollars)
Within 1 year
Type of holder and date

AH holders:
1971—Dec.
1972 Dec.
1973—Dec.
1974—Apr.
May

1-5
years

5-10
years

10-20
years

Over
20 years

21,636
26,552
33,785
33,568
34,923

93,648
88,564
81,715
80,570
77,165

29,321
29,143
25,134
26,961
26,960

9,530
15,301
15,659
16,036
17,458

10,397
6,079
6,145
5,981
5,103

Total

31........................................................ 262,038
31........................................................ 269,509
31........................................................ 270,224
30........................................................ 270,452
31........................................................ 269,550

Total

Bills

Other

119,141
130,422
141,571
140,905
142,864

97,505
103,870
107,786
107,337
107,941

U.S. Govt, agencies and trust funds:
1971—Dec. 31................................................
1972 Dec. 31................................................
1973 Dec. 31................................................
1974 Apr. 30................................................
May 31................................................

18,444
19,360
20,962
21,296
21,079

1,380
1,609
2,220
2,466
2,749

605
674
631
647
502

775
935
1,589
1,819
2,247

7,614
6,418
7,714
7,452
6,735

4,676
5,487
4,389
4,524
4,561

2,319
4,317
5,019
5,235
5,708

2,456
1,530
1,620
1,620
1,327

Federal Reserve Banks:
1971—Dec. 31................................................
1972 Dec. 31................................................
1973—Dec. 31................................................
1974—Apr. 30................................................
May 31................................................

70,218
69,906
78,516
80,007
81,395

36,032
37,750
46,189
47,356
50,865

31,033
29,745
36,928
37,276
37,988

4,999
8,005
9,261
10,080
12,877

25,299
24,497
23,062
22,793
20,502

7,702
6,109
7,504
7,982
8,032

584
1,414
1,577
1,687
1,747

601
136
184
189
248

Held by private investors:
1971—Dec. 31................................................
1972 Dec. 31................................................
1973 Dec. 31................................................
1974 Apr. 30................................................
May 31................................................

173,376
180,243
170,746
169,149
167,076

81,729
91,063
93,162
91,083
89,250

65,867
73,451
70,227
69,414
69,451

15,862
17,612
22,935
21,669
19,799

60,735
57,649
50,939
50,325
49,928

16,943
17,547
13,241
14,455
14,367

6,627
9,570
9,063
9,114
10,003

7,340
4,413
4,341
4,172
3,528

Commercial banks:
1971—Dec. 31........................................
1972 Dec. 31........................................
1973 Dec. 31........................................
1974 Apr. 30........................................
May 31........................................

51,363
52,440
45,737
43,025
41,349

14,920
18,077
17,499
13,508
12,206

8,287
10,289
7,901
4,717
4,093

6,633
7,788
9,598
8,791
8,113

28,823
27,765
22,878
23,081
22,779

6,847
5,654
4,022
5,168
5,077

555
864
1,065
1,013
1,025

217
80
272
254
262

Mutual savings banks:
1971—Dec. 31.........................................
1972 Dec. 31........................................
1973 Dec. 31........................................
1974—Apr. 30........................................
May 31........................................

2,742
2,609
1,955
1,820
1,690

416
590
562
448
406

235
309
222
200
163

181
281
340
248
243

1,221
1,152
750
750
719

499
469
211
229
217

281
274
300
277
246

326
124
131
116
102

Insurance companies:
1971—Dec. 31.........................................
1972 Dec. 31.........................................
1973 Dec. 31........................................
1974 Apr. 30........................................
May 31........................................

5,679
5,220
4,956
4,786
4,686

720
799
779
631
636

325
448
312
239
241

395
351
467
392
395

1,499
1,190
1,073
1,087
992

993
976
1,278
1,296
1,319

1,366
1,593
1,301
1,286
1,341

1,102
661
523
486
399

6,021
4,948
4,905
4,480
4,777

4,191
3,604
3,295
2,778
2,810

3,280
1,198
1,695
1,363
1,610

911
2,406
1,600
1,415
1,200

1,492
1,198
1,281
1,346
1,582

301
121
260
290
320

16
25
54
54
53

20
1
15
12
12

associations:
31........................................
31........................................
31........................................
30........................................
31........................................

3,002
2,873
2,103
2,105
2,041

629
820
576
505
436

343
498
121
118
82

286
322
455
387
354

1,449
1,140
1,011
989
913

587
605
320
368
366

162
226
151
194
298

175
81
45
49
29

State and local governments:
1971—Dec. 31........................................
1972—Dec. 31........................................
1973—Dec. 31........................................
1974—Apr. 30........................................
May 31........................................

9,823
10,904
9,829
10,207
9,280

4,592
6,159
5,845
6,381
5,559

3,832
5,203
4,483
4,924
4,082

760
956
1,362
1,457
1,477

2,268
2,033
1,870
1,833
1,704

783
816
778
720
755

918
1,298
1,003
949
1,014

1,263
598
332
324
248

94,746
101,249
101,261
102,726
103,253

56,261
61,014
64,606
66,832
67,197

49,565
55,506
55,493
57,853
59,180

6,696
5,508
9,113
8,979
8,017

23,983
23.171
22;076
21,239
21,239

6,933
8,906
6,372
6,384
6,313

3,329
5,290
5,189
5,341
6,026

4,237
2,868
3,023
2,931
2,476

Nonfinancial corporations:
1971—Dec. 31.........................................
1972 Dec. 31........................................
1973 Dec 31........................................
1974 Apr. 30........................................
Savings and loan
1971—Dec.
1972 Dec.
1973—Dec.
1974 Apr.
May

All others:
1971—Dec.
1972—Dec.
1973 Dec.
1974—Apr.
May

31.......................................
31........................................
31........................................
30........................................
31.........................................

N o t e . —Direct public issues only. Based on Treasury Survey of
Ownership.
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting: (1) 5,593 commercial banks, 478 mutual savings




banks, and 735 insurance companies combined, each about 90 per cent;
(2) 467 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 505 State and local govts., about 40 per cent.
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A 38

U.S. G O VERN M EN T SEC U R ITIES □ JU L Y 1974
DAILY-AVERAGE DEALER TR A N SA C TIO N S
( P a r v a lu e , in m illio n s o f d o lla rs)

U.S. Government securities
By maturity
Period

Total

Within
1 year

1-5
years

By type of customer

5-10
years

U.S. Govt, U.S. Govt,
securities securities
dealers
brokers

Over
10 years

Com­
mercial
banks

All
other1

U.S. Govt.
agency
securities

July..............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec...............................

3,187
2,969
2,993
3,366
3,884
3,384
4,022
3,889

2,390
2,335
2,330
2,403
3,021
2,798
3,001
3,167

322
289
367
706
644
374
485
348

323
228
226
172
158
163
447
317

153
118
72
85
61
48
89
58

661
593
581
566
583
568
655
675

543
622
632
874
1,182
954
1,188
1,051

1,057
975
982
1,044
1,142
1,073
1,173
1,123

927
778
798
881
977
789
1,007
1,040

687
732
700
771
1,048
810
810
869

1974—Jan................................
Feb...............................
Mar..............................
Apr...............................
M ay.............................

3,659
4,229
3,697
3,338
3,542

3,074
3,192
2,814
2,682
2,645

325
402
450
438
693

215
561
369
173
133

45
74
64
45
72

706
795
744
614
711

889
1,058
892
836
905

1,103
1,299
1,071
951
991

962
1,077
991
937
936

695
1,019
733
709
861

1973—M ay.............................

Week ending—
1974—May

1.......................
8.......................
15.......................
22.......................
29.......................

2,917
3,287
4,242
3,163
3,223

2,446
2,560
2,566
2,501
2,542

326
517
1,384
494
505

103
163
163
109
110

42
48
130
60
66

589
593
737
715
681

623
795
1,196
729
842

744
932
1,174
920
887

962
967
1,136
799
814

612
424
1,147
918
792

June

5.......................
12.......................
19.......................
26.......................

3,747
3,566
2,669
2,706

3,036
2,917
2,199
2,322

515
482
351
252

151
124
78
93

46
43
41
39

820
805
630
624

993
941
645
610

1,038
1,003
706
803

896
818
689
669

1,022
1,158
746
1,095

i Since Jan. 1972 has included transactions of dealers and brokers in
securities other than U.S. Govt.
N o t e . — The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank of N e w York.

They do not include allotments of, and exchanges for, new U.S. Govt,
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the number of
trading days in the period.

DAILY-AVERAGE DEALER P O S IT IO N S

DAILY-AVERAGE DEALER FIN A N C IN G

(Par value, in millions of dollars)

(In millions of dollars)

U.S. Government securities, by maturity
All
Within
1
maturi­
ties
year

1-5
years

5-10
years

Over
10
years

U.S.
Govt.
agency
securi­
ties

2,626
2,976
1,901
1,788
3,201
3,073
3,618
4,441

2,596
2,818
2,062
1,977
2,958
2,858
3,034
3,697

-3 2 4
-1 6 5
-2 5 0
-9 4
316
93
95
223

179
91
-4 3
-1 0 7
-111
56
350
396

175
232
131
12
38
67
139
124

1974—Jan................. 3,653
Feb................. 4,081
Mar................ 2,587
Apr................. 1,536
495

3,210
2,707
2,149
1,577
421

51
537
50
-121
-3 3

262
647
287
62
66

130
190
102
17
41

Period

1973—May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec................

Period

356
744
511
273
799
904
1,185
1,400

1973—May...........
June...........
July...........
Aug............
Sept............

1,324
1,435
1,045
719
791

1974—Jan.............
Feb............
Mar............

Week ending—
1974—Apr.

May

All
other

Else­
where

2,667
3,769
2,826
2,318
4,244
3,721
4,469
5,468

674
1,242
725
829
1,620
1,253
1,809
2,322

452
690
544
327
877
918
900
1,147

252
431
510
386
441
328
570
671

1,291
1,406
1,047
777
1,306
1,223
1,190
1,329

4,802
4,837
3,817
2,449
1,637

1,747
1,545
1,196
600
26

1,253
1,501
952
728
486

658
533
485
287
213

1,143
1 ,257
1,185
833
913

3 ...
10. ..
17. ..
24. ..

3,211
3,097
3,040
1,466

867
1,106
861
4

841
822
866
551

329
332
271
250

1,174
837
1,041
662

1.
8.
15.
22.
29.

1,763
1,572
1,790
1,515
1,552

201
-6
-3
-8 8
129

579
561
556
379
391

248
225
252
221
169

736
793
984
1,003
864

Nov...........

May...........

794
602
687
101
354

2,380
2,274
1,952
602

*
-5 1
-163
-203

109
85
38
38

40
27
8
2

752
772
790
661

1974—Apr.

921
743
402
14
241

-1 9 4
-226
153
-3 6
-5

44
66
65
73
78

24
19
66
50
42

638
647
728
687
977

May

N o t e . —The figures include all securities sold by dealers under repur­
chase contracts regardless of the maturity date of the contract, unless the
contract is matched by a reverse repurchase (resale) agreement or delayed
delivery sale with the same maturity and involving the same amount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders of the securities rather than
dealer trading positions.
Average of daily figures based on number of trading days in the period.




Corpora­
tions 1

New
York
City

Week ending—

3 ....... 2,530
10.
. . 2,335
1,834
17 ,
24.........
439
1........
8 ........
15........
22
29,

Commercial banks
All
sources

..
..
..
..
..

1 All business corporations, except commerpial banks and insurance
companies.
N o t e . — Averages of daily figures based on the number of calendar days
in the period. Both bank and nonbank dealers are included. See also
N o t e to the table on the left.




A

JU L Y 1974 □ FEDERALLY SPONSORED CR ED IT AGENC
NG ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, MAY 31, 1!
Cou­ Amount
pon
(millions
rate of dollars)

7.65
5%
95/g
8.00
7.05
6.10
5%
8.20
7.15
8.05
6.80
7.95
77/g
7.15
6.50
7.05
9.10
73/s

sy4

7.20
7.45
7.80
7.20
6.95
7.15
8.80
6%
7.45
7.60
83/4
7.75
7.05
7.80
6.60
7.30
8 Ya
m

5.30
7.05
6.15
8.60
7.75
7.15

173
400
800
217
1,000
250
400
500
700
265
300
300
500
400
350
600
700
300
300
600
300
500
500
200
300
600
300
300
500
400
350
300
200
200
188
300
400

200
400
350
140
150
150

3,041
8.00
4.38
7.40

200
248
250

8.38
3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63

250
53
5
71
35
10
21
81
200

Agency, and date of issue
and maturity
Federal National Mortgage
Association—Cont.
Debentures:
8/5/70 - 6/10/74.......
11/10/71 - 6 /1 0 /7 4 ....
9/10/69 - 9 /1 0 /7 4 ....
2/10/71 - 9/10/74........
5/10/71 - 12/10/74....
9/10/71 - 12/10/74....
11/10/70 - 3/10/75.. .
10/12/71 - 3/10/75. . .
4/12/71 -6/10/75........
10/13/70 - 9/10/75. . .
3/12/73 -9/10/75........
3/10/72 - 12/10/75. . .
9/10/73 - 12/10/75....
3/11/71 - 3/10/76........
6/12/73 - 3/10/76........
6/10/71 -6/10/76........
2/10/72 -6/10/76 ........
11/10/71 - 9 /1 0 /7 6 ....
6/12/72-9/10/76........
7/12/71 - 12/10/76.. ..
12/11/72- 12/10/76...
6/10/74- 12/10/76. .. .
2/13/62 - 2/10/77___
9/11/72 -3/10/77........
3/11/74 - 3/10/77........
12/10/70 - 6/10/77. . .
5/10/71 -6/10/77........
12/10/73 - 6/10/77... .
9/10/71 -9/12/77 ........
9/10/73 - 9/12/77........
7/10/73 - 12/12/77.
10/1/73 - 12/12/77....
6/10/74-3/10/78........
6/12/73 - 6/12/78........
3/U/74 - 9/11/78........
10/12/71 - 12/11/78..
12/10/73 - 3/12/79. . . .
9/10/73 - 6/11/79........
6/12/72- 9/10/79........
12/10/71 - 12/10/79. .
2/10/72 - 3/10/80........
6/10/74-6/10/80........
2/16/73 - 7/31/80........
2/16/73 - 7/31/80........
10/1/73 -9/10/80........
1/16/73 - 10/30/80....
12/11/72 - 12/10/80...
6/29/72- 1/29/81........
3/12/73 - 3/10/81........
4/18/73 -4/10/81........
3/21/73 - 5/1/81..........
3/21/73 - 5/1/81..........
1/21/71 - 6/10/81....
9/10/71 -9/10/81........
3/11/74- 12/10/81.. ..
6/28/72-5/1/82..........
2/10/71 - 6/10/82........
9/11/72 - 9/10/82........
12/10/73 - 12/10/82. ..
3/11/71 - 6/10/83........
6/12/73 - 6/10/83........
11/10/71 -9 /1 2 /8 3 ....
4/12/71 - 6/11/84........
12/10/71 - 12/10/84..
3/10/72 - 3/10/92___
6/12/72-6/10/92........
12/11/72 - 12/10/97. . .

Cou­ Amount
pon
(millions
rate of dollars)

7.90
5.70
7.85
5.65
6.10
6.45
7.55
6.35
5.25
7.50
6.80
5.70
8.25
5.65
7.13
6.70
5.85
6.13
5.85
7.45
6.25
8.45
41/2
6.30
7.05
6.38
6.50
7.20
6.88
7.85
7.25
7.55
8.45
7.15
7.15
6.75
7.25
7.85
6.40
6.55
6.88
8.50
5.19
3.18
7.50
4.46
6.60
6.15
7.05
6.59
4.50
5.77
7.25
7.25
7.30
5.84
6.65
6.80
7.35
6.75
7.30
6.75
6.25
6.90
7.00
7.05
7.10

400
350
250
300
250
450
300
600
500
350
650
500
300
500
400
250
450
300
500
300
500
500
198
500
400
250
150
500
300
400
500
500
650
600
550
300
500
300
300
350
250
350
1
9
400
5
300
156
350
26
18
2
250
250
250
58
250
200
300
200
300
250
200
250
200
200
200

nout

Agency, and date of issue
and maturity

illioi

lollai

Banks for cooperatives
Debentures:
12/3/73 -6 /3 /7 4 ..
1/2/74 - 7/1/74. . .
2/4 /7 4 -8 /1 /7 4 ...
3/4/74 - 9/3/74...
4/1/74- 10/1/74..
5/1/74- 11/4/74. .
10/1/73 -4 /4 /7 7 ..

617
469
559
349
268
212
200

Federal intermediate
credit banks
Debentures:
9/4/73 - 6/3/74. .
10/1/73 -7/1/74.
1/4/71 - 7/1/74.
11/1/73 - 8/1/74.
12/3/73 -9/3/74.
1/2/74 - 10/1/74.
2/4/74 - 11/4/74.
3/4/74 - 12/2/74.
5/1/72 - 1/2/75. .
4/1/74 - 1/2/75. .
5/1/74 - 2/3/75 . ..
1/3/72-7/1/75. .
3/1/73 - 1/5/76. .
7/2/73 - 1/3/77. ..
1/2/74 - 1/3/78. .

626
699
224
583
528
661
754
785
240
608
674
302
261
236
406

Federal land banks
Bonds:
10/20/71 - 7/22/74. . .
4/20/71 - 10/21/74...
2/20/70 - 1/20/75. . .
4/23/73 - 1/20/75. .. .
4/20/65 - 4/21/75...
7/20/73 -4 /2 1 /7 5 ... .
2/15/72 - 7/21/75....
4/22/74 - 7/21/75. . . .
7/20/71 - 10/20/75...
10/23/73 - 10/20/75..
4/20/72 - 1/20/76....
2/21/66 - 2/24/76. . .
1/22/73 - 4/20/76... .
4/22/74 -4 /2 0 /7 6 ....
7/20/66 - 7/20/76. ..
1/21/74 - 7/20/76. .. .
4/23/73 - 10/20/76...
4/2 2 /7 4 -4 /2 0 /7 7 ....
7/20/73 - 7/20/77... .
10/20/71 - 10/20/77. .
2/20/63 - 2/20/73-78.
5/2/66 - 4/20/78___
7/20/72 - 7/20/78. . .
10/23/73 - 10/19/78. .
2/20/67 - 1/22/79... .
1/21/74 - 1/22/79___
9/15/72 -4 /2 3 /7 9 ... .
2/2 0 /74-7/23/79....
10/23/72 - 10/23/79. .
1/22/73 - 1/21/80. .. .
7/20/73 - 7/21/80___
2/23/71 -4 /2 0 /8 1 ....
4/20/72 -4 /2 0 /8 2 ....
4/23/73 - 10/20/82. ..
10/23/73 - 10/20/83. .

not guaranteed by the U.S. Govt.; see also note to table at top of p. A-40.

5.85
5.30
8M
7.15
4^
7.65
5.70
8.30
7.20
7.40
6%
5.00
6%
8%
5%
7.05
7.15
8%
7%
6.35
41/s
5^
6.40
7.35
5.00
7.10
6.85
7.15
6.80
6.70
71/2

6.70
6.90
7.30
7.30

326
300
220
300
200
300
425
300
300
362
300
123
373
400
150
360
450
565
550
300
148
150
269
550
285
300
235
389
400
300
250
224
200
239

A 40

FEDERALLY SPONSORED C R ED IT AGENCIES □ JU L Y 1974
M A JO R BALANCE S H E E T ITEM S O F SE L E C T E D FEDERALLY S P O N S O R E D C R E D IT A G E N C IES
(In millions of dollars)
Federal home loan banks
Assets

End of
period

Federal National
Mortgage Assn.
(secondary market
operations)

Liabilities and capital
Cash
and
de­
posits

Ad­
vances
to
mem­
bers

Invest­
ments

1970.............
1971.............
1972.............

10,614
7,936
7,979

3,864
2,520
2,225

105
142
129

10,183
7,139
6,971

2,332
1,789
1,548

1973—M ay..
Ju n e..
July. .
Aug. .
S ep t..
Oct.. .
Nov. .
Dec...

10,155
11,145
12,365
13,511
14,298
14,799
14,866
15,147

2,702
2,516
2,126
2,016
2,908
3,498
3,649
3,537

95
108
103
111
102
106
77
157

9,615
10,215
11,213
12,562
14,062
15,362
15,362
15,362

1974—Jan ...
Feb...
Mar...
Apr...
M ay..

15,188
14,904
14,995
16,020
17,103

2,843
2,680
2,779
1,615
1,956

121
116
124
82
96

14,556
13,906
13,906
13,902
14,893

Bonds
and
notes

Mem­
ber
de­
posits

Banks
for
cooperatives

Mort­
gage
loans
(A)

Deben­ Loans
tures
to
and
cooper­
notes
atives
(L)
(A)

1,607
1,618
1,756

15,502
17,791
19,791

15,206
17,701
19,238

1,261
1,453
1,183
1,091
1,178
1,270
1,545
1,745

1,991
2,008
2,035
2,064
2,089
2,107
2,112
2,122

21,087
21,413
21,772
22,319
22,826
23,348
23,912
24,175

1,692
1,936
2,027
2,067
2,113

2,246
2,294
2,306
2,337
2,376

24,424
24.541
24,888
25,264
25,917

Capital
stock

N o t e . —Data from Federal Home Loan Bank Board, Federal National
Mortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts of all agencies, except for stock of FHLB’s.
Bonds, debentures, and notes are valued at par. They include only publicly

Federal
intermediate
credit banks

Federal
land
banks

Deben­
tures

(L)

Loans
and
dis­
counts
(A)

2,030
2,076
2,298

1,755
1,801
1,944

20,225
20,364
20,843
21,186
21,537
22,243
22,404
23,001

2,765
2,725
2,811
2,865
2,738
2,711
2,662
2,577

23,131
23,092
23,515
23,668
25,089

3,123
3,211
3,143
2,836
2,700

Deben­
tures

Bonds

(L)

Mort­
gage
loans
(A)

4,974
5,669
6,094

4,799
5,503
5,804

7,186
7,917
9,107

6,395
7,063
8,012

2,370
2,316
2,365
2,310
2,560
2,728
2,704
2,670

6,777
6,958
6,981
7,065
7,170
7,130
7,029
7,198

6,460
6,645
6,745
6,727
6,833
6,901
6,890
6,861

9,953
10,117
10,256
10,441
10,592
10,781
10,926
11,071

8,836
8,836
9,388
9,390
9,388
9,838
9,838
9,838

2,741
2,828
2,878
2,810
2,674

7,163
7,277
7,545
7,514
7,708

6,956
7,029
7,162
7,403
7,585

11,245
11,402
11,467
11,067
11,067

10,048
10,282
10,282
10,843
10,843

(L)

offered securities (excluding, for FHLB’s, bonds held within the FHLB
System) and are not guaranteed by the U.S. Govt.; for a listing of these
securities, see table on opposite page. Loans are gross of valuation reserves
and represent cost for FNMA and unpaid principal for other agencies.

NEW IS S U E S O F STATE AND LOCAL G O V E R N M EN T S E C U R IT IE S
(In millions of dollars)
All issues (new capital and refunding)
Type of issue

Period
Total

197
197
197
197

0
1
2
3

18,164
24,962
23,652
23,970

Gener­
al
obli­
gations

Reve­
nue

11,850 6,082
15,220 8,681
13,305 9,332
12,257 10,632

1973—A pr...
M ay..
June..
July..
Aug...
Sept..
Oct...
N o v ..
Dec...

1,826
1,939
2,152
2,028
1,657
1,750
2,313
2,257
2,089

870
825
1,025
1,458
1,067
721
1,344
866
919

947
1,106
861
564
588
741
964
1,383
995

1974—J a n ...
Feb..,
M a r.,
Apr..

2,198
1,934
1,979
2,362

1,402
1,155
1,160
1,694

794
778
590
660

Type of issuer

U.S.
HAA1 Govt.
loans

131
1,000
959
1,022
261
285
173

227

Issues for new capital

103
62
57

State

4,174
5,999
4,991
4,212

Special
district
and Other2
stat.
auth.

Use of proceeds
Total

Edu­ Roads
and
cation bridges

Util­
ities4

Othei
Hous­ Veter­
ans’ pur­
ing5
aid poses

5,595 8,399
8,714 10,246
9,496 9,165
9,507 10,249

18,110
24,495
22,073
22,408

5,062
5,278
4,981
4,311

1,532
2,642
1,689
1,458

3,525
5,214
4,638
5,654

466
2,068
1,910
2,639

7,526
9,293
6,741
8,335

159
291
189
516
529
236
337
243
450

731
945
1,082
363
498
838
842
1,247
1,022

934
703
881
1,149
630
675
1,135
766
616

1,757
1,775
2,144
2,001
1,602
1,653
2,163
1,929
1,954

306
299
542
391
311
327
299
356
372

12
233
102
231
30
66
142
42
165

452
430
643
366
352
579
412
596
487

88
224
334
3
290
384
251
247
344

898
588
523
1,009
618
298
1,060
687
582

208
473
346
360

823
523
776
849

1,163
938
856
1,155

2,130
1,869
1,868
2,325

595
449
359
505

36
53
258
9

373
612
349
595

56
39
241
178

1,070
717
660
1,038

1 Only bonds sold pursuant to 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
2 Municipalities, counties, townships, school districts.
3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser
and payment to issuer, which occurs after date of sale.




Total
amount
deliv­
ered 3

4 Water, sewer, and other utilities.
5 Includes urban redevelopment loans.
N o t e . — Security Industries Assn. data; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.

JU L Y 1974 a S EC U R ITY ISSUES

A 41

TOTAL NEW ISSUES
(In millions of dollars)
Gross proceeds, all issues1
Noncorporate

Corporate

Period
Total

Bonds

U.S.
Govt.2

U.S.
Govt,
agency3

State
and local
(U.S.)4

Others

Total

Stock

Total

Publicly
offered

Privately
placed

Preferred

Common

1970.....................
1971.....................
1972.....................
1973.....................

88,666
105,233
96,522
100,417

14,831
17,325
17,080
19,057

16,181
16,283
12,825
23,883

17,762
24,370
23,070
22,700

949
2,165
1,589
1,385

38,945
45,090
41,957
33,391

30,315
32,12.3
28,896
22,268

25,384
24,775
19,434
13,649

4,931
7,354
9,462
8,620

1,390
3,670
3,367
3,372

7,240
9,291
9,694
7,750

1973—Apr..........
M ay.. . . . .
June.........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec...........

6,567
11,225
7,943
7,643
8,019
8,091
8,924
12,553
6,635

564
3,353
559
490
3,097
2,432
485
4,521
148

1,640
3,442
1,706
2,471
1,600
2,100
2,612
2,200
1,032

1,688
1,870
2,046
1,992
1,474
1,630
2,232
2,224
1,966

178
17
53
60
42
15
196
45
251

2,497
2,543
3,578
2,631
1,806
1,915
3,398
3,563
3,238

1,739
1,721
2,757
1,870
1,382
1,366
2,358
2,257
2,469

938
1,049
1,358
857
792
684
1,805
1,669
1,552

801
672
1,398
1,013
590
682
553
589
917

200
187
216
226
94
119
355
637
196

558
635
606
536
330
430
685
668
573

3,392
2,687
3,141
2,947

2,956
2,101
2,384
2,134

2,115
1,684
2,020
1,594

842
418
364
541

152
268
395
356

284
318
361
456

1974—Jan. 6........
F eb..........
Mar..........
Apr...........

Gross proceeds, major groups of corporate issuers
Real estate
and financial

Manufacturing

Commercial and
miscellaneous

Transportation

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

1970...............................................
1971..............................................
1972..............................................
1973..............................................

9,192
9,426
4,821
4,329

1,320
2,152
1,809
643

1,963
2,272
2,645
1,283

2,540
2,390
2,882
1,559

2,213
1,998
2,862
1,881

47
420
185
43

8,016
7,605
6,392
5,585

3,001
4,195
4,965
4,661

5,053
4,227
3,692
3,535

83
1,592
1,125
1,369

3,878
6,601
8,485
5,661

1,638
2,212
2,095
2,860

1973—Apr....................................

260
387
703
364
230
270
472
383
485

22
12
25
169
49
78
52
93
18

237
30
133
139
149
149
63
61
145

139
143
89
112
129
96
147
92
285

91
236
183
250
83
140
114
241
226

1
8
1
15
2

150
361
1,099
651
419
334
342
584
569

369
410
497
269
90
252
608
496
319

258
355
303
244
320
228
633
296
350

19
29
60
5
16
46
499
27

743
351
337
223
182
244
734
692
693

228
231
181
151
136
106
193
122
115

866
353
419
1,109

29
36
161
9

135
51
40
209

125
143
71
56

127
5
76
6

1

1,192
536
850
446

249
293
446
685

142
372
310
279

4
25
21
5

493
784
690
85

30
87
58
57

Period

June...................................
July....................................
Aug....................................
Sept....................................
Oct.....................................
Nov....................................
Dec.....................................
1974—Jan. 6.................................
Feb.....................................
Mar....................................

Public utility

4
6
,

Communication

6 Beginning Jan. 1974 noncorporate figures are no longer published by
1 Gross proceeds are derived by multiplying principal amounts or
the SEC.
number of units by offering price.
2 includes guaranteed issues.
3 Issues not guaranteed.
N o t e . —Securities and Exchange Commission estimates of new issues
maturing in more than 1 year sold for cash in the United States.
* See n o t e to table at bottom of opposite page.
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organ­
izations.




A 42

SECURITY ISSUES □ JULY 1974
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions o f dollars)

Derivation of change, all issuers1
Period

All securities

Bonds and notes

Common and preferred stocks

New issues

Retirements

Net change

New issues

Retirements

Net change

New issues

Retirements

Net change

1970.......................
1971.......................
1972.......................
1973*.....................

38,707
46,687
42,306
35,058

9,079
9,507
10,224
11,804

29,628
37,180
32,082
23,252

29,495
31,917
27,065
21,501

6,667
8,190
8,003
8,810

22,825
23,728
19,062
12,691

9,213
14,769
15,242
13,554

2,411
1,318
2,222
2,993

6,801
13,452
13,018
10,561

1972—IV............. .

10,944

2,932

8,012

6,998

2,207

4,790

3,946

725

3,220

1973—1.................
I I ................
I l l ..............
IV...............

8,219
9,418
6,638
10,783

2,806
2,470
2,150
4,378

5,412
6,947
4,488
6,405

4,198
5,769
4,521
7,013

1,781
1,664
1,579
3,786

2,417
4,106
2,941
3,227

4,020
3,648
2,118
3,768

1,025
806
571
591

2,995
2,842
1,547
3,177

Type of issues
Commercial
and other 2

Manu­
facturing

Period

Transpor­
tation 3

Public
utility

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

6,585
1,995
801

2,534
2,094
658

827
1,409
-109

2,290
2,471
1,411

900
711
1,044

1972—IV...............

116

290

575

479

1973—1..................
I I ................
I l l ..............
IV...............

135
632
165
-131

63
-2
450
147

-174
119
108
-1 6 2

377
327
247
460

1971.......................
1972.......................
1973.......................

Real estate
and financial 1

Communi­
cation

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

800
254
-9 3

6,486
5,137
4,265

4,206
4,844
4,509

3,925
3,343
3,165

1,600
1,260
1,389

5,005
7,045
3,522

2,017
2,096
3,141

179

47

1,056

1,735

944

89

1,920

580

127
327
414
176

-4 3
7
-4 4
-1 3

844
1,136
1,217
1,068

1,170
1,276
557
1,506

520
842
752
1,051

185
562
77
575

965
1,049
284
1,224

1,244
673
260
964

1 Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
N o t e . —Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on opposite page, new issues

exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions of bonds into stocks. Retirements
are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose,

O P E N -E N D IN V ESTM EN T C O M PA N IES
(In millions of dollars)

Year

Sales and redemption
of own shares
Sales 1 Redemp­
tions

Assets (market value
at end of period)

Net
sales

Total 2

Cash
Other
position 3

1962..............
1963..............
1964..............

2,699
2,460
3,404

1,123
1,504
1,875

1,576
952
1,528

21,271
25,214
29,116

1,315
1,341
1,329

1965..............
1966..............
1967..............

4,359
4,671
4,670

1,962
2,005
2,745

2,395
2,665
1,927

35,220
34,829
44,701

1.803
2,971
2,566

1968..............
1969..............
1970..............

6,820
6,717
4,624

3,841
3,661
2,987

2,979
3,056
1,637

52,677
48,291
47,618

3,187
3,846
3,649

1971..............
1972..............
1973..............

5,145
4,892
4,358

4,751
6,563
5,651

774
-1,671
1,261

56,694
59,831
46,518

3,163
3,035
4,002

Sales and redemption
of own shares
Sales 1 Redemp­
tions

19,956 1973—M ay..
Ju n e ..
23,873
July. .
27,787
Aug. .
33,417
Sept...
O ct.. .
31,858
N ov...
42,135
Dec...
49,490
44,445 1974—Jan.. .
Feb...
43,969
M ar...
A pr...
53,531
M ay..
56,796
42,516

1 Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment of investment income dividends; excludes reinvestment of realized capital gains dividends.
2 Market value at end of period less current liabilities.




Month

Assets (market value
at end of period)

Net
sales

Total 2

Cash
Other
position 3

285
303
364
239
330
305
502
349

446
349
357
432
395
559
542
392

-161
-4 6
-7
-193
-6 5
-2 5 4
-4 0
-4 3

48,588
48,127
50,933
49,553
52,322
51,952
45,814
46,518

4,154
4,164
4,594
4,567
4,641
4,168
4,126
4,002

44,434
43,963
46,339
44,986
47,681
47,784
41,688
42,516

334
215
297
262
323

325
303
346
327
320

9
-8 8
-4 9
r —65
3

47,094
45.958
44,423
42,679
41,015

4,226
4,447
4,406
4,426
4,389

42,863
41,511
40,017
38,253
36,626

3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.
N o t e . —Investment Company Institute data based on reports of mem­
bers, 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.

JU L Y 1974 □ BUSINESS FINANCE

A 43

CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)

Year

1968
1969
1970
1971
1972
1973

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

87.6
84.9
74.0
85.1
98.0
126.3

39.9
40.1
34.8
37.4
42.7
55.8

47.8
44.8
39.3
47.6
55.4
70.4

23.6
24.3
24.7
25.1
26.0
27.8

Corporate
capital
Undis­
tributed consump­
tion
profits
allow-

24.2
20.5
14.6
22.5
29.3
42.6

46.8
51.9
56.0
60.4
65.9
71.4

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

1972—1 1
111....

94.8
98.4
106.1

41.4
42.9
45.9

53.4
55.6
60.3

25.9
26.2
26.4

27.5
29.4
33.9

66.2
66.0
68.0

1973—.......... 1 119.6
II........ 128.9
111.... 129.0
I V .. . . 127.4

52.7
57.4
57.6
55.7

66.9
71.6
71.5
71.6

26.9
27.3
28.1
29.0

40.0
44.2
43.4
42.6

69.3
70.5
71.7
74.2

1974— 1

60.6

83.4

29.5

53.9

75.1

I V ....

t Includes depreciation, capital outlays charged to current accounts, and
accidental damages.

Corporate
capital
Undis­
tributed consump­
tion
profits
allow­
ances 1

Quarter

144.0

N o t e . —Dept, of Commerce estimates, Quarterly data are at seasonally
adjusted annual rates.

C U R R E N T A S S E T S AND LIABILITIES OF NONFIN A N CIA L C O R PO R A T IO N S
(In billions of dollars)
Current assets
Net
working
capital

End of period

Total

Cash

U.S.
Govt.
securi­
ties

Current liabilities

Notes and accts.
receivable
U.S.
Govt.1

Other

Inven­
tories

Other

Total

Notes and accts.
payable
Accrued
Federal
income
U.S.
taxes
Other
Govt.1

Other

187.4
204.9

492.3
518.8

50.2
55.7

7.7
10.7

4.2
3.5

201.9
208.8

193.3
200.3

35.0
39.7

304.9
313.9

6.6
4.9

204.7
207.3

10.0
12.2

83.6
89.5

1972—1......................... 209.8
I I ....................... 215.0
I l l ..................... 219.2
IV ..................... 224.3

528.1
536.5
547.5
563.1

55.6
56.0
57.7
60.5

10.2
8.9
7.8
9.9

3.4
2.8
2.9
3.4

212.8
217.8
224.1
230.5

204.3
207.7
212.2
215.1

41.8
43.1
42.8
43.6

318.3
321.5
328.3
338.8

4.9
4.9
4.7
4.0

207.0
208.5
212.1
221.6

13.3
11.4
12.7
14.1

93.2
96.7
98.8
99.1

231,8
237.7
241.9
245.3

579.2
596.8
613.6
631.4

61.2
62.3
62.2
65.2

10.8
9.6
9.5
10.7

3.2
2.9
3.0
3.5

235.7
245.6
254.2
255.8

222.8
230.3
238.2
247.0

45.5
46.0
46.6
49.3

347.4
359.1
371.7
386.1

4.1
4.5
4.4
4.3

222.8
232.5
240.8
252.0

15.7
13.9
15.3
16.6

104.7
108.1
111.2
113.3

1974—1......................... 253.2

653.9

62.8

11.7

3.2

265.6

258.9

51.6

400.7

4.5

256.7

18.7

120.7

1970..............................
1971..............................

1973—1.........................
I I .......................
I l l .....................
IV ......................

1 Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations’ books.

N o t e . —Based

on Securities and Exchange Commission estimates,

B U S IN E S S E X PE N D IT U R E S O N NEW PLAN T AND E Q U IP M E N T
(In billions of dollars)

Total
Durable

Non­
durable

Public utilities

Transportation

Manufacturing
Period

Mining

Rail­
road

Air

Other

Commu­
nications
Electric andGas
other

Other1

Total
(S, A.
A.R.)

1971.......................
1972.......................
1973.......................

81.21
88.44
99.74

14.15
15.64
19.25

15.84
15.72
18.76

2.16
2.45
2.74

1.67
1.80
1.96

1.88
2.46
2.41

1.38
1.46
1.66

12.86
14.48
15.91

2.44
2.52
2.76

10.77
11.89
12.85

18.05
20.07
21.40

1972—1..................
I I ...............
I l l ...............
IV...............

19.38
22.01
21.86
25.20

3.29
3.71
3.86
4.77

3.32
3.92
3.87
4.61

.58
.61
.59
.63

.48
.48
.38
.47

.50
.73
.61
.63

.32
.39
.35
.40

3.19
3.61
3.67
4.01

.44
.62
.72
.73

2.72
2.95
2.84
3.39

4.55
4.98
4.97
5.57

86.79
87.12
87.67
91.94

1973—1..................
II.................
I l l ...............
IV...............

21.50
24.73
25.04
28.48

3.92
4.65
4.84
5.84

3.88
4.51
4.78
5.59

.63
.71
.69
.71

.46
.46
.48
.56

.52
.72
.57
.60

.32
.43
.44
.47

3.45
3.91
4.04
4.54

.50
.68
.77
.82

2.87
3.27
3.19
3.53

4.94
5.40
5.24
5.83

96.19
97.76
100.90
103.74

1974—1..................
112................
Ill 2.............

24.10
27.96
28.05

4.74
5.62
5.69

4.75
5.64
5.67

.68
.76
.75

.50
.65
.64

.47
.63
.50

.34
.52
.57

3.85
4.44
4.60

.52
.81
.97

3.19

5.05

107.27
110.53
113.16

1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.




8.'90
8.65

N o t e . —Dept, of Commerce and Securities and Exchange Commission
estimates for corporate and noncorporate business; excludes agriculture,
real estate operators, medical, legal, educational, and cultural service, and
nonprofit organizations.

A 44

REAL E S TA TE C R ED IT □ JU L Y 1974
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions of dollars)

End of year
Type of holder, and type of property

1970

1971

End of quarter
1973

1972

1974

I

II

III

IV

I

ALL HOLDERS............................................
1- to 4-family................................................
Multifamily1................................................
Commercial..................................................
Farm.............................................................

451,726
280,175
58,023
82,292
31,236

499,758
307,200
67,367
92,333
32,858

565,196
345,500
76,585
107,673
35,438

579,852
353,971
78,536
110,894
36,451

600,197
366,202
81,130
115,150
37,715

619,996
378,382
83,521
119,504
38,589

635,137
386,489
85,394
123,855
39,399

646,280
392,053
86,760
127,228
40,239

PRIVATE FINANCIAL INSTITUTIONS..
1- to 4-family................................................
Multifamily1................................................
Commercial..................................................
Farm .............................................................

355,929
231,317
45,796
68,697
10,119

394,239
253,540
52,498
78,345
9,856

450,371
288,169
59,293
92,387
10,522

463,105
296,369
60,658
95,377
10,701

480,242
307,423
62,429
99,364
11,026

495,044
316,754
63,566
103,429
11,295

505,583
322,296
64,723
107,018
11,546

514,110
327,146
65,555
109,891
11,518

73,275

82,515

99,314

103,548

109,114

114,788

119,068

121,668

Commercial banks2......................................

1- to 4-family............................................
Multifamily1............................................
Commercial..............................................
Farm .........................................................

Mutual savings banks ...................................

42,329
3,311
23,284
4,351
57,948

48,020
3,984
26,306
4,205
61,978

57,004
5,778
31,751
4,781
67,556

59,127
6,109
33,342
4,970

68,920

62,181
6,469
35,224
5,240
70,634

65,484
6,745
37,181
5,378
72,034

67,998
6,932
38,696
5,442
73,231

69,351
7,178
39,664
5,475
73,957

1- to 4-family............................................
Multifamily1.............................................
Commercial..............................................
Farm .........................................................

37,342
12,594
7,893
119

38,641
14,386
8,901
50

41,650
15,490
10,354
62

42,524
15,645
10,683
68

43,003
16,394
11,178
59

43,738
16,567
11,670
59

44,247
16,843
12,084
57

44,462
17,011
12,425
59

Savings and loan associations ......................

150,331

174,250

206,182

213,050

222,580

229,182

232,104

236,514

1- to 4-family............................................
Multifamily1............................................
Commercial..............................................

Life insurance companies .............................

124,970
13,830
11,531
74,375

142,275
17,355
14,620
75,496

167,049
20,783
18,350
77,319

172,528
21,369
19,153
77,587

180,423
21,880
20,277
77,914

185,706
22,391
21,085
79,040

1- to 4-family............................................
Multifamily1.............................................
Commercial..............................................
Farm ..........................................................

26,676
16,061
25,989
5,649

24,604
16,773
28,518
5,601

22,466
17,242
31,932
5,679

22,190
17,535
32,199
5,663

21,816
17,686
32,685
5,727

21,826
17,863
33,493
5,858

FEDERAL AND RELATED AGENCIES..
1- to 4-family...............................................
Multifamily1................................................
Commercial ................................................
Farm .............................................................

32,992
21,993
3,359
16
7,624

39,357
26,453
4,555
11
8,338

45,790
30,147
6,086

47,252
30,708
6,503

48,991
31,276
7,128

9,557

10,041

Government National Mortgage Association

5,222

5,323

5,113

4,663

1- to 4-family............................................
Multifamily1.............................................
Commercial ............................................

2,902
2,304
16

2,770
2,542
11

2,490
2,623

2,040
2,623

188,051
22,561
21,492
81,180

191,529
22,800
22,185
81,971

22,000
18,387
34,746
6,047

21,804
18,566
35,617
5,984

53,008
33,725
8,171

55,664
35,454
8,489

58,430
37,168
8,923

10,587

11,112

11,721

12,339

3,908

4,429

4,029

3,604

1,300
2,608

1,462
2,967

1,330
2,699

1,189
2,415

398
421

387
450

410
450

430
470

1,000

1,200

1,300

330
437

900

1- to 4-family............................................
Farm.........................................................

Federal Housing and Veterans Administra­
tions ......................................................

3,505

3,389

3,338

3,354

3,293

3,446

3,476

2,013
1,463

3,514
1,964
1,550

Federal National Mortgage Association . . . .

15,502

17,791

19,791

20,571

21,413

22,831

19,479
3,352

20,370
3,805

24,175

24,875

Federal land banks (farm only).................

Farmers Home Administration.....................

1- to 4-family............................................
Multifamily1............................................

1- to 4-family............................................
Multifamily1............................................

767

2,771
734

15,181
321

819

2,517
872

16,681
1,110

837

2,199
1,139

17,697
2,094

860

2,093
1,261

18,217
2,354

1,998
1,295

18,521
2,892

480
520

2,046
1,400

550
650

596
704

20,516
4,359

7,187

7,917

9,107

9,591

10,117

10,592

11,071

11,635

Federal Home Loan Mortgage Corporation.

357

964

1,789

1,718

2,029

2,423

2,294
129

2,604

2,446
158

2,637
2,472

GNMA Pools ................................................

452

5,815

6,495

1- to 4-family............................................
Multifamily1..........................................

7,054
277

8,287

10,865

6,250
245

7,331

9,109

452

3,154

8,745
364

10,431
434

INDIVIDUALS AND OTHERS3................
1- to 4-family................................................
Multifamily1................................................
Commercial..................................................
Farm.............................................................

62,805
26,865
8,868
13,579
13,493

66,162
27,207
10,314
13,977
14,664

69,035
27,184
11,206
15,286
15,359

69,495
26,894
11,375
15,517
15,709

70,964
27,503
11,573
15,786
16,102

71,944
27,903
11,784
16,075
16,182

73,890
28,739
12,182
16,837
16,132

73,740
27,739
12,282
17,337
16,382

1- to 4-family............................................
Multifamily1............................................

357

934
30

3,153
1

1 Structure of five or more units.
2 Includes loans held by nondeposit trust companies but not bank trust
departments.
3 Includes some U.S. agencies for which amounts are small or separate
data are not readily available.
N o t e . —Based on data from various institutional and Government




1,754
35

5,620
195

1,698
20

1,973
56

7,964
323

165

sources, with some quarters estimated in part by Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the Dept, of
Commerce. Separation of nonfarm mortgage debt by type of property,
where not reported directly, and interpolations and extrapolations where
required, estimated mainly by Federal Reserve.

JU L Y 1974 □ REAL ESTA TE C R E D IT

A 45

FEDERAL NATIONAL M ORTG AGE A SSO C IA T IO N AND FEDERAL H O M E LOAN M O RTG A G E C O R P O R A T IO N SECONDARY M ORTGAGE M ARKET ACTIVITY
(In millions o f dollars)

FNMA
Mortgage
holdings

End of
period

Mortgage
transactions
(during period)

Total i

FHAin­
sured

VAguaranteed

Pur­
chases

15,492
17.791
19.791
24.175

11,063
12,681
14,624
16.852

4,429
5,110
5,112
6.352

5,079
3,574
3,699
6,127

1973—May.
June.
July.
Aug..
Sept..,
O ct..,
Nov..,
Dec..,

21,087
21,413
21,772
22,319
22,831
23,348
23,912
24.175

15,581
15,768
15,877
16,085
16,293
16,510
16,734
16.852

5.335
5,411
5,574
5,761
5,937
6,101
6,294
6.352

472
516
516
699
633
659
656
410

1974—Jan ...
Feb...
Mar...
Apr..,
M ay.,

24,424
24,529
24,875
25,263
25,917

17,008
17,050
17,315
17,450
17,725

6,348
6.336
6,340
6,503
6,794

350
242
462
526
821

197
197
197
197

0
1
2
3

FHLMC
Mortgage
holdings

Mortgage
commitments

Made
during
period

Out­
stand­
ing

Total

FHA
VA

20
336
211
71

8,047
9,828
8,797
8,914

5,203
6,497
8,124
7.889

325
968
1,789
2.604

40

1,180
1,191
1,102
1,019
724
264
200
158

9,312
9,778
9,859
9,809
9,602
8,918
8,690
7.889

110
489
1,646
2,154
1,145

6,715
6,768
7,913
9,292
9,475

Sales

i Includes conventional loans not shown separately.
from FNMA and FHLMC, respectively.

N o t e . —Data

For F N M A : Holdings include loans used to back bond issues guaranteed

by GNMA. Commitments include some multifamily and nonprofit
hospital loan commitments in addition to 1- to 4-family loan commitments
accepted in FNMA’s free market auction system, and through the FNM AGNMA Tandem Plan (Program 18).

Mortgage
transactions
(during period)
Con­
ven­
tional

Pur­
chases

325
821
1,503
1,743

147
286
861

325
778
1,298
1,334

1,906
2,029
2,158
2,307
2,423
2,527
2,565
2.604

1,695
1,716
1,714
1.728
1.729
1.742
1,746
1.743

211
313
444
579
694
785
819
861

147
154
140
161
126
113
46
50

2,621
2,625
2,638
2,722
2,986

1,736
1.730
1,724
1,756
1,827

885
895
914
967
1,159

34
21
29
101
281

Sales

64
408
409
17
21

Mortgage
commitments

Made
during
period

Out­
stand­
ing

1,606
1,629

182
198
186

187
159
139
208
143
63
45
43

344
316
278
291
288
218
207
186

26
49
595
400
1,486

161
185
748
1,037
2,221

For FHLM C: Data for 1970 begin with Nov. 26, when the FHLMC
became operational. Holdings and transactions cover participations as
well as whole loans. Holdings include loans used to back bond issues
guaranteed by GNMA. Commitments cover the conventional and Govt.underwritten loan programs.

T E R M S AND YIELDS ON NEW H O M E M O RTG AGES
Conventional mortgages
Terms i
Period

Yields (per cent) in
primary market

FHAinsured
loans—yield
in private
secondary
market 5

Contract
rate (per
cent)

Fees and
charges
(per cent)2

Maturity
(years)

Loan/price
ratio
(per cent)

Purchase
price (thous.
of dollars)

Loan
amount
(thous. of
dollars)

FHLBB
series 3

HUD
series 4

1970...........................
1971...........................
1972...........................
1973...........................

8.27
7.60
7.45
7.78

1.03
.87
.88
1.11

25.1
26.2
27.2
26.3

71.7
74.3
76.8
77.3

35.5
36.3
37.3
37.1

25.2
26.5
28.1
28.1

8.44
7.74
7.60
7.95

8.52
7.75
7.64

9.03
7.70
7.52

1973—June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec.................

7.62
7.69
7.77
7.98
8.12
8.22
8.31

1.08
1.11
1.08
1.19
1.20
1.08
1.12

26.3
26.3
26.7
26.6
26.1
26.0
25.6

78.0
78.1
76.7
77.3
76.9
75.5
75.5

35.8
37.0
38.6
37.2
38.5
38.9
37.7

27.5
28.3
28.9
28.2
29.0
28.8
28.0

7.79
7.87
7.94
8.17
8.31
8.39
8.49

8.05
8.40
8.85
8.95
8.80
8.75
8.75

7.89
8.19

1974—Jan.................
Feb.................
Mar................
Apr.................
May...............
June*.............

8.33
8.40
8,43
8.47
8.55
8.63

1.16
1.33
i .35
1.21
1.20
1.28

26.4
25.9
26.4
26.1
25.8
26.7

76.3
76.5
77.3
77.3
76.8
76.8

38.8
37.8
39.1
38.5
37.9
40.1

28.9
28.5
29.5
29.2
28.8
30.4

8.52
8.62
8.64
8.67
8.74
8.84

8.65
8.55
8.60
8.90
9.15

1 Weighted averages based on probability sample survey of character­
istics of mortgages originated by major institutional lender groups (in­
cluding mortgage companies) for purchase of single-family homes, as
compiled by Federal Home Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. Data are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer of property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates
NOTE TO TABLE AT BOTTOM OF PAGE A-46:
American Life Insurance Association data for new commitments of
$100,000 and over each on mortgages for multifamily and nonresidential
nonfarm properties located largely in the United States. The 15 companies
account for a little more than one-half of both the total assets and the
nonfarm mortgages held by all U.S. life insurance companies. Averages,
which are based on number of loans, vary in part with loan composition
by type and location of property, type and purpose of loan, and loan




9.18
8.97
8.86
8.78
8.54
8.66
9.17
9.46

(as shown in first column of this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices of prevailing
local conditions as of the first of the succeeding month. Yields are derived
from weighted averages of private secondary market prices for Sec. 203,
30-year mortgages with minimum downpayment and an assumed pre­
payment at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates.
amortization and prepayment terms. Data for the following are limited
to cases where information was available or estimates could be made:
capitalization rate (net stabilized property earnings divided by property
value); debt coverage ratio (net stabilized earnings divided by debt service);
and per cent constant (annual level payment, including principal and
interest, per $100 of debt). All statistics exclude construction loans,
increases in existing loans in a company’s portfolio, reapprovals, and loans
secured by land only.

A 46

REAL E S TA TE C R ED IT □ JU L Y 1974

FEDERAL NATION AL M O RTG AGE A SSO C IA T IO N A U C T IO N S OF COM M ITM EN TS TO BUY HOM E M O RTG AGES
Date of auction
1973

Item

1974

Nov. 26 Dec. 17 Feb. 25 Mar. 11 Mar. 25
Amounts (millions of dollars):
Govt.-underwritten loans
Offered1................................
Accepted...............................
Conventional loans
Offered1................................
Accepted...............................
Average yield (per cent) on short­
term commitments 2
Govt.-underwritten loans........
Conventional loans..................

Apr. 8

Apr. 22

May 6

May 20

June 3

June 17

July 1

351.1 1,154.7 1,061.4
285.3
332.5
267.0

333.6
168.5

256.0
111.1

217.7
82.8

85.1
71.5

38.5
31.5

271.7
103.0

24.9
20.9

38.6
36.2

58.0
42.3

31.0
22.1

51.4
32.2

48.6
39.4

74.2
50.1

126.3
34.2

163.9
63.3

80.3
40.9

74.3
29.8

41.4
23.6

26.1
20.5

21.6
11.2

39.7
23.6

8.81
8.90

8.78
8.82

8.43
8.50

8.44
8.47

8.62
8.64

8.95
9.00

9.18
9.21

9.34
9.44

9.48
9.63

9.54
9.70

9.54
9.69

9.65
9.76

1 Mortgage amounts offered by bidders are total bids received.
2 Average accepted bid yield (before deduction of 38 basis-point fee
paid for mortgage servicing) for home mortgages assuming a prepayment

period of 12 years for 30-year loans, without special adjustment for
FNMA commitment fees and FNMA stock purchase and holding requirements. Commitments mature in 4 months.

M A JO R H O LD ER S OF F H A -IN S U R E D AND VA-GUARANTEED RESID E N T IA L M O RTG AGE DEBT
(End of period, in billions of dollars)

Holder

Dec. 31,
1970

Dec. 31,
1971

Dec. 31,
1972

Mar. 31,
1973

June 30,
1973

Sept. 30,
1973

Dec. 31,
1973

All holders..................................................
F H A ........................................................
VA............................................................
Commercial banks............................ .
F H A ........................................................
VA............................................................
Mutual savings banks.................................
F H A ........................................................
VA............................................................
Savings and loan assns...............................
F H A ........................................................
VA............................................................
Life insurance cos........................................
FH A ........................................................
VA............................................................
Others..........................................................
FH A ........................................................
VA............................................................

109.2
91.7
37.3
10.5
7.9
2.6
28.1
16.1
12.0
18.7
10.2
8.5
16.8
11.4
5.4
35.1
26.3
8.8

120.8
81.3
39.5
11.3
8.3
3.0
28.2
16.1
12.1
24.3
13.7
10.6
15.8
10.8
5.0
41.2
32.4
8.8

131.1
86.4
44.7
11.7
8.5
3.2
28.6
16.0
12.6
28.9
15.4
13.5
14.7
10.0
4.7
47.2
36.5
10.7

132.4
86.6
45.8
11.7
8.5
3.2
28.7
15.9
12.8

133.6
86.4
47.2
11.7
8.5
3.2
28.7
15.8
12.9

133.8
85.6
48.2
11.4
8.2
3.2
28.6
15.7
12.9

135.0
85.0
50.0
11.2
7.9
3.3
28.4
15.5
12.9

N o t e . —VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.

)

29.5
14.3
9.7
4.6
48.2

1

29.8
14.0
9.5
4.5
49.4

)

30.1
13.7
9.3
4.4
50.0

}

29.7
13.6
9.2
4.4
52.1

Detail by type of holder partly estimated by Federal Reserve for first
and third quarters, and for most recent quarter.

C O M M IT M E N TS OF LIFE IN S U R A N C E C O M PA N IE S FOR IN CO M E PR O PE R T Y M ORTGAGES

Period

Number
of loans

Total
amount
committed
(millions of
(dollars)

1970...........................
1971...........................
1972...........................

912
1,664
2,132

1971—Nov................
Dec................
1972—Jan.................
Feb.................
Mar................
Apr................
May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec.................
See N ote on p. A-45.




Averages
Loan
amount
(thousands
of dollars)

Contract
interest
rate
(per cent)

Maturity
(yrs./mos.)

Loanto-value
ratio
(per cent)

Capitaliza­
tion rate
(per cent)

Debt
coverage
ratio

Per cent
constant

2,341.1
3,982.5
4,986.5

2,567
2,393
2,339

9.93
9.07
8.57

22/8
22/10
23/3

74.7
74.9
75.2

10.8
10.0
9.6

1.32
1.29
1.29

11.1
10.4
9.8

136
133

288.2
290.0

2,119
2,181

9.01
8.96

23/5
23/0

75.6
74.4

9.9
9.9

1.27
1.30

10.2
10.2

107
122
220
200
246
268
170
178
152
159
180
130

198.6
423.5
530.4
381.1
399.6
683.2
421.2
515.7
354.1
343.5
371.7
363.9

1,856
3,471
2,411
1,906
1,624
2,549
2,478
2,897
2,329
2,161
2,065
2,799

8.78
8.62
8.50
8.44
8.48
8.55
8.56
8.54
8.58
8.65
8.63
8.64

22/1
22/6
24/2
24/6
23/4
23/0
23/0
23/0
23/4
23/0
23/2
22/8

73.3
73.3
76.3
76.3
76.0
75.4
74.5
74.9
75.7
75.8
74.7
74.4

10.0
9.7
9.5
9.5
9.5
9.5
9.5
9.5
9.5
9.6
9.6
9.8

1.31
1.31
1.29
1.29
1.26
1.29
1.31
1.27
1.28
1.29
1.28
1.37

10.2
10.0
9.7
9.6
9.8
9.8
9.8
9.9
9.8
9.9
9.9
9.9

JU L Y 1974 □ C ON SUM ER C R E D IT

A 47

TOTAL CREDIT
(In millions of dollars)

Instalment
End of period

Total

Auto­
mobile
paper

Total

Noninstalment

Other
consumer
goods
paper

Home
improve­
ment
loans 1

Personal
loans

Total

Single­
payment
loans

Charge accounts
Retail
outlets

Credit
cards 2

Service
credit

1965....................
1966....................
1967....................
1968....................
1969....................

89,883
96,239
100,783
110,770
121,146

70,893
76,245
79,428
87,745
97,105

28,437
30,010
29,796
32,948
35,527

18,483
20,732
22,389
24,626
28,313

3,736
3,841
4,008
4,239
4,613

20,237
21,662
23,235
25,932
28,652

18,990
19,994
21,355
23,025
24,041

7,671
7,972
8,558
9,532
9,747

5,724
5,812
6,041
5,966
5,936

706
874
1,029
1,227
1,437

4,889
5,336
5,727
6,300
6,921

1970.....................
1971.....................
1972.....................
1973.....................

127,163
138,394
157,564
180,486

102,064
111,295
127,332
147,437

35,184
38,664
44,129
51,130

31,465
34,353
40,080
47,530

5,070
5,413
6,201
7,352

30,345
32,865
36,922
41,425

25,099
27,099
30,232
33,049

9,675
10,585
12,256
13,241

6,163
6,397
7,055
7,783

1,805
1,953
1,947
2,046

7,456
8,164
8,974
9,979

1973—May.........
June.........
July , ,
Aug..........
Sept..........
Oct...........
Nov-........
Dec...........

164,277
167,083
169,148
171,978
173,035
174,840
176,969
180,486

133,531
136,018
138,212
140,810
142,093
143,610
145,400
147,437

47,518
48,549
49,352
50,232
50,557
51,092
51,371
51,130

41,096
41,853
42,575
43,505
44,019
44,632
45,592
47,530

6,541
6,688
6,845
7,009
7,120
7,235
7,321
7,352

38,376
38,928
39,440
40,064
40,397
40,651
41,116
41,425

30,746
31,065
30,936
31,168
30,942
31,230
31,569
33,049

12,817
12,990
12,968
13,111
13,088
13,145
13,161
13,241

6,387
6,544
6,424
6,475
6,229
6,554
6,761
7,783

1,932
2,011
2,055
2,130
2,106
2,036
2,024
2,046

9,610
9,520
9,489
9,452
9,519
9,495
9,623
9,979

1974—Jan...........
Feb...........
Mar..........
Apr..........
May.........

178,686
177,522
177,572
179,495
181,680

146,575
145,927
145,768
147,047
148,852

50,617
50,386
50,310
50,606
51,076

47,303
46,781
46,536
47,017
47,588

7,303
7,343
7,430
7,573
7,786

41,352
41,417
41,492
41,851
42,402

32,111
31,595
31,804
32,448
32,828

13,117
13,159
13,188
13,315
13,331

6,894
6,136
6,097
6,556
6,948

1,981
1,882
1,842
1,878
1,999

10,119
10,418
10,677
10,699
10,550

1 Holdings of financial institutions; holdings of retail outlets are in­
cluded in “Other consumer goods paper.”
2 Service station and miscellaneous credit-card accounts and homeheating-oil accounts.

N o t e . —Consumer credit estimates cover loans to individuals for
household, family, and other personal expenditures, except real estate
mortgage loans- For back figures and description of the data, see “Con­
sumer Credit,’ Section 16 (New) of Supplement to Banking and Monetary
Statistics , 1965 and B u l l e t i n s for Dec. 1968 and Oct. 1972.

C O N SU M E R C R ED IT HELD BY CO M M ERCIAL B A N K S
(In millions of dollars)
Instalment

End of period

Automobile paper

Total
Total

Purchased

Direct

1965.....................
1966.....................
1967.....................
1968.....................
1969.....................

35,652
38,265
40,630
46,310
50,974

28,962
31,319
33,152
37,936
42,421

10,209
11,024
10,972
12,324
13,133

5,659
5,956
6,232
7,102
7,791

1970.....................
1971...............
1972.....................
1973.....................

53,867
60,556
70,640
81,248

45,398
51,240
59,783
69,495

12,918
13,837
16,320
19,038

7,888
9,277
10,776
12,218

1973—May.........
June.........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec..........

75,066
76,519
77,556
79,036
79,526
80,281
80,830
81,248

63,707
64,999
66,065
67,381
67,918
68,627
69,161
69,495

17,716
18,138
18,439
18,771
18,886
19,123
19,198
19,038

1974—Jan...........
Feb...........
Mar..........
Apr..........
May.........

81,081
80,909
80,918
81,750
82,527

69,429
69,246
69,232
69,944
70,721

18,885
18,770
18,775
18,896
19,037

See also N ote to table at top o f page-




Nonin­
stalment

Other consumer goods paper
Mobile
homes
v------------

Credit
cards

Other

Home
improve­
ment
loans

Personal loans
Check
credit

Other

Single­
payment
loans

--------— '
4,166
4,681
5,469
1,307
2,639

4,423
5,786
7,223

11,680
11,866
12,023
12,190
12,160
12,262
12,306
12,218
12,113
12,028
11,985
12,039
12,100

5,387
6,082

2,571
2,647
2,731
2,858
2,996

6,357
7,011
7,748
798
8,160
1,081
8,699

3,792
4,419
5,288
6,649

7,113
4,501
5,122
6,054

3,071
3,236
3,544
3,982

1,336
1,497
1,789
2,144

9,280
10,050
11,158
12,187

8,469
9,316
10,857
11,753

6,321
6,473
6,629
6,825
6,956
7,106
7,208
7,223

5,360
5,502
5,603
5,792
5,909
5,991
6,171
6,649

5,538
5,688
5,815
5,923
5,978
6,012
6,035
6,054

3,635
3,700
3,774
3,863
3,903
3,950
3,979
3,982

1,868
1,909
1,934
1,982
2,027
2,060
2,085
2,144

11,589
11,723
11,848
12,035
12,099
12,123
12,179
12,187

11,359
11,520
11,491
11,655
11,608
11,654
11,669
11,753

7,237
7,285
7,333
7,399
7,491

6,826
6,770
6,667
6,761
6,887

6,041
6,063
6,082
6,208
6,323

3,944
3,937
3,958
4,028
4,135

2,167
2,173
2,169
2,180
2,199

12,216
12,220
12,263
12,433
12,549

11,652
11,663
11,686
11,806
11,806

6,690
6,946
7,478
8,374
8,553

A 48

JU L Y 1974 □ CON SUM ER C R ED IT
INSTALMENT CREDIT HELD BY NONBANK LENDERS
(In millions o f dollars)

Finance companies

End of period

Total

Other consumer
goods paper

Auto­
mobile
paper

Mobile
homes

1965.......................
1966.......................
1967.......................
1968.......................
1969.......................

23,851
24,796
24,576
26,074
27,846

9,218
9,342
8,627
9,003
9,412

1970................... .
1971.......................
1972.......................
1973.......................

27,678
28,883
32,088
37,243

9,044
9,577
10,174
11,927

2,464
2,561
2,916
3,378

1973—M ay............
June............
July.............
Aug.............
Sept.............
Oct..............
Nov.............
Dec.............

33,859
34,367
35,020
35,634
35,993
36,365
36,887
37,243

10,872
11,365
11,583
11,721
11,859
11,949
11,927

1974—Jan..............
Feb..............
Mar.............
Apr.............
M ay............

37,140
37,148
37,005
37,291
37,751

11,754
11,710
11,624 ‘
11,684
11,810

i

Other financial lenders

Home
improve­
ment
loans

Other

4,343
4,925
5,069
5,424
5 ,' 175

11,121

Per­
sonal
loans

Total

Credit
unions

Retail outlets

Mis­
cellaneous
lenders 1

Total

Auto­
mobile
dealers

Other
retail
outlets

232
214
192
166
174

10,688

11,481
12,485

8,289
9,315
10,216
11,717
13,722

7,324
8,255
9,003
10,300
12,028

965
1,060
1,213
1,417
1,694

9,791
10,815
11,484
12,018
13,116

315
277
287
281
250

9,476
10,538
11,197
11,737

3,237
3,052
3,589
4,434

199
247
497
917

12,734
13,446
14,912
16,587

15,088
17,021
19,511
22,567

12,986
14,770
16,913
19,609

2,102

2,251
2,598
2,958

13,900
14,151
15,950
18,132

218
226
261
299

13,682
13,925
15,689
17,833

3,025
3,081
3,132
3,187
3,235
3,269
3,310
3,378

3,985
4.002
4,103
4,194
4,265
4,316
4,371
4,434

656
694
733
771
809
847
917

15,321
15,469
15,687
15,899
15,963
16,074
16,371
16,587

20,599
21,084
21,394
21,808
22,129
22,315
22,505
22,567

17,832
18,269
18,517
18,961
19,207
19,339
19,517
19,609

2,767
2,815
2,877
2,847
2,922
2,976
2,988
2,958

15,366
15,568
15,733
15,987
16,053
16,303
16,847
18,132

284
289
293
296
297
300
302
299

15,082
15,279
15,440
15,691
15,756
16,003
16,545
17,833

3,392
3,406
3,324
3,364
3,413

4,460
4,486
4,497
4,547
4,583

940
968
1,018
1,057
1,097

16,594
16,578
16,542
16,639
16,848

22,301
22,413
22,562
22,753
23,203

19,429
19,430
19,550
19,704
20,053

2,872
2,983
3,012
3,049
3,150

17,705
17,120
16,969
17,059
17,177

296
293
292
293
294

17,409
16,827
16,677
16,766
16,883

886

Saving? and loan associations and mutual savings banks.

10,058
10,315

See also

N o te

12,866

to table at top of preceding page.

FIN A N C E RATES ON SELEC TED T Y PE S OF IN ST A L M E N T CR ED IT
(Per cent per annum)
Commercial banks
Month

1972—M ay..........
June..........
July...........
Aug...........
Sept...........
Oct............
Nov...........

Finance companies

New
automo­
biles
(36 mos.)

Mobile
homes
(84 mos.)

Other
consumer
goods
(24 mos.)

(12 mos.)

Creditcard
plans

9.96
9.98
9.97

10.73
10.49
10.77
10.71
10.67

12.44
12.38
12.39
12.47
12.47
12.38
12.44
12.55

12.63
12.65
12.73
12.72
12.70
12.70
12.63
12.77

12.46
12.51
12.48
12.50
12.48
12.57
12.51

12.78
12.82
12.82
12.81

10.02
10.02
10.01
10.02
10.01

10.66

10.85
10.69

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

10.01

10.25
10.44
10.53
10.49
10.49

10.54
10.76
10.67
10.64
10.84
10.57
10.84
10.95
11.06
10.98
11.19
11.07

1974—Jan.............
Feb............
Mar...........
Apr............
M ay..........

10.55
10.53
10.50
10.51
10.63

11.09
11.25
10.92
11.07
10.96

10.05
10.04
10.04
10.05
10.08
10.10

12.66

12.67
12.80
12.75
12.86

12.88

Personal
loans

New

Used

17.24
17.25
17.25
17.25
17.25
17.23
17.23
17.24

11.86
11.85
11.84
11.85
11.88
11.86
11.89
11.92

16.47
16.52
16.57
16.62
16.71
16.67
16.78
16.87

12.65
12.76
12.71
12.74
12.78
12.78
12.75
12.84
12.96
13.02
12.94
13.12

17.13
17.16
17.19
17.19
17.22
17.24
17.21
17.22
17.23
17.23
17.23
17.24

11.89
11.86
11.85
11.88
11.91
11.94
12.02
12.13
12.28
12.34
12.40
12.42

16.08
16.20
16.32
16.44
16.52
16.61
16.75
16.86
16.98
17.11
17.21
17.31

12.96
13.02
13.04
13.00
13.10

17.25
17.24
17.23
17.25
17.25

12.39
12.33
12.29
12.28
12.36

16.56
16.62
16.69
16.76
16.86

N o t e . —Rates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) of the Board of Governors.
Commercial bank rates are “most common” rates for direct loans with




Automobiles

Mobile
homes

Other
consumer
goods

Personal
loans

12.29

19.31

21.23

’ii!25*

*i9 !38 *

21.26

12.41

19.15

21.05

'12.41'

"lS.90

"21.22

12.51

19.04

21.00

i s ! 92 *

2 6 !79

12.73

18.88

20.76

12.77

i 8 .93

20.55

12.90

18.69

20.52

i s ! 77 *

26 !65

18.90

20.68

i8 !68 *

2o! 52

’ii! 5 4 ‘

"i3 !i i '
13.24
*ii!is *

specified maturities; finance company rates are weighted averages for
purchased contracts (except personal loans). For back figures and description of the data, see Bulletin for Sept. 1973.

JU L Y 1974 □ CON SUM ER C R ED IT

A 49

INSTALMENT CREDIT EXTENDED AND REPAID
(In millions of dollars)

By type
Period

Total

Automobile
paper

Other
consumer
goods paper

By holder

Home
improve­
ment loans

Personal
loans

Commercial
banks

Finance
companies

Other
financial
lenders

Retail
outlets

Extensions
1966...........................
1967...........................
1968...........................
1969...........................
1970...........................
1971...........................
1972...........................
1973...........................

82,832
87,171
99,984
109,146
112,158
124,281
142,951
165,083

27,192
26,320
31,083
32,553
29,794
34,873
40,194
46,453

26,329
29,504
33,507
38,332
43,873
47,821
55,599
66,859

2,223
2,369
2,534
2,831
2,963
3,244
4,006
4,728

27,088
28,978
32,860
35,430
35,528
38,343
43,152
47,043

30,073
31,382
37,395
40,955
42,960
51,237
59,339
69,726

25,897
26,461
30,261
32,753
31,952
32,935
38,464
43,221

10,368
11,238
13,206
15,198
15,720
17,966
20,607
23,414

16,494
18,090
19,122
20,240
21,526
22,143
24,541
28,722

1973—May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec.................

13,932
13,646
14,542
14,294
13,691
14,149
14,275
12,677

3,989
3,762
3,930
3,968
3,939
3,912
3,819
3,315

5,504
5,505
5,943
5,961
5,537
5,911
5,978
5,254

374
400
433
408
410
415
402
429

4,065
3,979
4,236
3,957
3,805
3,911
4,076
3,679

5,859
5,684
5,976
6,195
5,809
6,060
6,222
5,124

3,820
3,584
3,824
3,685
3,602
3,623
3,564
3,279

1,868
1,978
2,110
1,943
2,019
1,951
2,029
1,897

2,385
2,400
2,632
2,471
2,261
2,515
2,460
2,377

1974—Jan.................
Feb.................
Mar................
Apr.................
May...............

13,714
13,541
13,823
14,179
14,669

3,492
3,389
3,484
3,545
3,769

5,662
5,647
5,933
6,034
6,156

373
409
424
447
468

4,187
4,096
3,982
4,153
4,276

5,715
5,794
5,710
5,838
6,023

3,693
3,656
3,497
3,671
3,832

1,911
1,861
1,976
2,054
2,140

2,395
2,230
2,640
2,616
2,674

Repayments
77,480
83,988
91,667
99,786
107,199
115,050
126,914
144,978

25.619
26,534
27,931
29,974
30,137
31,393
34,729
39,452

24,080
27,847
31,270
34,645
40,721
44,933
49,872
59,409

2,118
2,202
2,303
2,457
2,506
2,901
3,218
3,577

25,663
27,405
30,163
32,710
33,835
35,823
39,095
42,540

27,716
29,549
32,611
36,470
40,398
45,395
50,796
60,014

24,952
26,681
28,763
30,981
31,705
31,730
35,259
38,066

9,342
10,337
11,705
13,193
14,354
16,033
18,117
20,358

15,470
17,421
18,588
19,142
20.742
21,892
22.742
26,540

1973—May,
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

11,941
12,034
12,544
12,399
12,332
12,449
12,549
12,267

3,261
3,253
3,334
3,293
3,406
3,427
3,471
3,338

4,917
4,955
5,141
5,168
5,072
5,149
5,154
5,001

290
300
308
298
322
308
301
332

3,473
3,526
3,761
3,640
3,532
3,565
3,623
3,596

4,976
4,890
5,112
5,146
5,167
5,212
5,345
5,088

3,100
3.241
3,312
3.241
3,144
3,287
3,143
3,151

1,612
1,694
1,771
1,738
1,757
1,703
1,814
1,766

2,253
2,209
2,349
2,274
2,264
2.247
2.247
2,262

1974—Jan ..
Feb.,
Mar.
Apr.
May

12,797
12,870
13,206
13,026
13,407

3,433
3,394
3,544
3,498
3,601

5,193
5,340
5,596
5,483
5.607

356
323
308
312
315

3,815
3,813
3,758
3,733
3,884

5,254
5,430
5,479
5,470
5,573

3,418
3,423
3,452
3,375
3,528

1,823
1,692
1,827
1,784
1,855

2,302
2,325
2,448
2,397
2,451

196
196
196
196
197
197
197
197

6
7
8

9
0
1
2

3

Net change
1966...........................
1967...........................
1968...........................
1969...........................
1970...........................
1971...........................
1972...........................
1973...........................

5,352
3,183
8,317
9,360
4,959
9,231
16,037
20,105

1,573
-2 1 4
3,152
2,579
-343
3,480
5,465
7,001

2,249
1,657
2,237
3,687
3,152
2,888
5,727
7,450

105
167
231
374
457
343
788
1,151

1,425
1,573
2,697
2,720
1,693
2,520
4,057
4,503

2,357
1,833
4,784
4,485
2,977
5,842
8,543
9,712

945
-2 2 0
1,498
1,772
-168
1,205
3,205
5,155

1,026
901
1,501
2,005
1,366
1,933
2,490
3,056

1,024
669
534
1,098
784
251
1,799
2,182

1973—May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec.................

1,991
1,612
1,998
1,895
1,359
1,700
1,726
410

728
509
596
675
533
485
348
-2 3

587
550
802
793
465
762
824
253

84
100
125
110
88
107
101
97

592
453
475
317
273
346
453
83

883
794
864
1,049
642
848
877
36

720
343
512
444
458
336
421
128

256
284
339
205
262
248
215
131

132
191
283
197
-3
268
213
115

1974—Jan.................
Feb.................
Mar................
Apr................
May...............

917
671
617
1,153
1,262

59
-5
-6 0
47
168

469
307
337
551
549

17
86
116
135
153

372
283
224
420
392

461
364
231
368
450

275
233
45
296
304

88
169
149
270
285

93
-9 5
192
219
223

N o t e . — Monthly estimates are seasonally adjusted and include adjust­
ments for differences in trading days. Annual totals are based on data
not seasonally adjusted.
Estimates are based on accounting records and often include finance
charges. Renewals and refinancing of loans, purchases and sales of in­




stalment paper, and certain other transactions may increase the amount
of extensions and repayments without affecting the amount outstanding.
For back figures and description of the data, see “Consumer Credit,”
Section 16 (New) of Supplement to Banking and Monetary Statistics , 1965,
and B u l l e t i n s for Dec. 1968 and Oct. 1972.

A 50

IN D USTR IA L P R O D U C TIO N : S.A. □ JU L Y 1974
MARKET GROUPINGS
(1967 = 100)

Grouping

Total index.....................................
Products, total...................................
Final products .................................
Consumer goods........................
Equipment..................................
Intermediate products...................
Materials............................................

1967
pro­
por­
tion

1973
aver­
age

1974

1973
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar . r Apr.

May*5 June

100.0 125.6 125.6 126.7 126.5 126.8 127.0 127.5 126.5 125.4 124.6 124.7 124. 9 125.,5 125..5
62.21 123.4 123.7 124.2 123.7 124.3 124.3 125.3 124.0 122.9 122.4 122.6 122. 8 123. 4
48.95 121.3 121.3 122.1 121.4 122.4 122.7 123.7 122.6 121.2 120.6 121.0 121,.0 121,.9
28.53 131.7 131.9 132.8 131.2 132.3 132.6 133.5 131.3 129.2 128.3 128.5 128..7 129,.5
20.42 106.7 106.6 107.3 107.6 108.5 108.9 110.1 110.1 109.8 109.9 110.1 110.,4 111.,3
13.26 131.1 132.0 132.5 132.1 131.0 130.6 131.1 129.1 129.2 129.1 128.2 129..3 129..6
37.79 129.3 129.0 130.9 130.9 131.3 131.1 131.5 130.7 129.7 128.3 128.8 128.,5 129. 0

123. 1
121,J

128..7
110.,5
130.,4
129. 4

Consumer goods
Durable consumer goods ....................

7.
2.84
1.87
.97

139.0 141.8 142.4 134.0 138.2 137.3 138.5 134.6 128.2 126.4 128.5 130.4 132.7 131.2

Automotive products.....................
Autos..........................................
Auto parts and allied goods.. . .

Home goods.......................................
Appliances, TV, and radios..........
Appliances and A /C ..............
TV and home audio...............
Carpeting and furniture................
Misc. home goods.........................

5.02
1.41
.92
.49
1.08
2.53

140.3 141.3 142.9 141.1 142.9 140.9 141.2 142.5 139.6 137.5 140.1 140.5 141.7 140.6
147.2 147.8 146.3 149.4 143.4 140.4 147.9 138.4 131.9 135.8 135.1 136.6
144.
156.9 154.1 156.0 153.3 159.8 159.3 154.7 172.2 153.9 148.2 150.0 149.1 151.1

Nondurable consumer goods ..............

Clothing..........................................
Consumer staples...........................
Consumer foods and tobacco...
Nonfood staples.........................
Consumer chemical products.
Consumer paper products....
Consumer fuel and lighting..
Residential utilities.............

136.8 142.6 141.7 121.1 129.8 131.4 133.7 120.6 108.0 106.6 108.0 112.7 116.8 114.7
125.4 132.6 134.0 103.9 118.4 122.5 124.8 106.2 90.0 86.4 86.3 97.7 100.3 99.6
158.9 161.9 156.7 154.2 151.8 148.4 150.9 147.8 142.6 145.5 149.8 141.5 148.4 143.6

150.0 148.9 155.4 154.2 153.3 153.9 152.7 150.1 153.5 153.3 154.5 158.2 157.7
133.6 134.7 134.7 132.9 134.8 134.1 136.8 136.3 134.4 134.2 136.3 136.0 137.7 136.5

20.67 129.0 128.1

129.1

130.2 130.1 130.8 131.5 130.2 129.5 129.1

128.7

128.0

127.8

143.7
153.5
121.7
148.2
155.4

144.1
153.0
122.5
149.2
157.

145.8
155.6
124.1
150.4
160.0

140.8
160.3
119.1
138.2
149.0

143.0
159.7
119.4
143.2
151.6

143.8 142.9
160.0
120.0
144.4
152.5

4.32 116.0 116.0 116.5 117.0 118.0 116.8 117.3 120.3 116.3 114.5 112.0 107.2
16.34 132.4 131.4 132.5 133.6 133.2 134.5 135.2 132.8 133.0 133.0 133.1 133.5 133.9 133.2
8.37 122.2 119.6 121.3 121.9 122.2 123.3 126.5 125.0 126.9 125.9 125.7 124.4 124.4 123.9
7.98
2.64
1.91
3.43
2.25

143.1
153.3
121.3
147.5
156.8

144.8
153.4
124.4
149.7
160.9

146.2
156.2
122.5
151.9
161.9

144.3
154.9
123.6
147.
158.0

141.1
156.7
120.5
140.7
149.8

139.4
157.8
119.4
136.7
145.6

140.4
159.0
119.9
137.4
148.6

Equipment
Business equipment.....................

Industrial equipment..............
Building and mining equip.,
Manufacturing equipm ent.,
Power equipment................
Commercial, transit, farm eq..
Commercial equipm ent.. . .
Transit equipment..............
Farm equipment.................

Defense and space equipment.

Military products................

12.74 122.6 122.5 123.0 124.6 125.8 126.2 127.8 126.9 126.8 127.3 127.6 128.3 129.1

128.0

6.77
1.45
3.85
1.47

120.1
120.4
113.0
138.5

119.8
119.1
113.1
138.3

120.5
119.6
113.9
138.5

122.5
123.0
115.1
141.0

124.1
123.7
117.3
142.3

124.5
124.7
117.3
143.0

125.6
126.0
118.2
144.6

124.9
126.0
118.5
140.3

125.3
128.5
119.3
138.0

126.6
130.3
120.6
138.7

126.8
131.3
121.1
137.3

128.5
137.9
122.1
136.6

128.4
135.5
122.0
138.1

5.97
3.30
2.00
.67

125.5
135.0
109.8
125.1

125.4
134.1
109.7
129.3

125.
135.9
109.0
126.4

127.0
137.0
108.4
132.8

127.7
138.2
109.6
129.4

128.1
140.1
109.8
123.5

130.3
141.3
111.4
132.4

129.2
139.3
111.1
133.4

128.5
139.8
109.5
129.2

128.2
139.8
109.3
126.0

128.7
140.8
109.4
126.1

128.0
140.4
106.1
131.2

129.9 128.4
141.2 139.5
110.0 108.4
133.4

7.68

80.2

80.1

81.1

80.0

80.9

81.9

81.4

80.9

81.0

80.6

5.15

80.3

80.0

81.1

79.7

79.0

79.8

79.1

79.3

80.0

81.3

80.6

80.2

80.5

80.0

81.7

80.4

127.6
135.5
122.3
137.8

81.4

79.6

In term ed ia te products

Construction products..........
Misc. intermediate products.

5.93 134.2 135.9 134.5 135.3 134.9 134.3 133.7 131.1 133.0 131.3 129.6 130.8 132.2 133.4
7.34 128.6 128.9 132.7 129.6 128.1 127’. 5 129.0 127.4 126.3 127.4 127.5 128.0 127.5

Materials
130.1 129.2 131.7 131.8 132.3 132.2 133.0 132.7 129.8
128.6 129.9 128.2 128.4 121.0 113.0
126
4.75 127.8 128
5.41 119.3 118.2 124.5 122.3 122.1 122.7 125.8 125.3 123.9
10.75 136.5 134.9 137.6 138.0 138.7 139.0 138.7 141.6 140.0

Durable goods materials . ,..

20.91

Nondurable goods materials ...........

13.99 129.1

Consumer durable parts.
Equipment parts.............
Durable materials n ec...

Textile, paper, and chem. mat..
Nondurable materials n.e.c.......
Fuel and power, industrial...........

129.4 130.4 130.6 130.3 130.1

130.7

129.2 131.1

127.3 127.2 127.0 128.2

128.9

109.3 110.6 112.6 114.2 115.7
122.6 121.6 119.7 122.9 123.0
137.6 137.5 137.1 137.2 137.7

131.1

131.9 131.8

130.9 131.0

8.58 139.8 140.2 142.2 142.4 141.9 141.4 142.4 140.1 143.4 141.7 143.1 144.0 142
143.0
5.41 112.2 112.3 112.1 111
112.0 112.3 112.1 111.9 111.7 114.3 114.7 112.3 112.2 112.1
2.89 123.9 125.3 126.9 126.3 128.3 126.9 124.9 123.1 121.5 122.5 122.6 123.3 124.
125.1

Supplementary groups
Home goods and clothing.
Containers..........................

130.2 132.4 128.8 126.9 127.0 125.1 125
9.34 129.0 129.7 130.7 130.0 131.3 129.
1.82 139.9 141.4 135.1 140.5 139.8 141.2 142.3 141.0 148.4 144.3 151.4 148.4 145.0

Gross value of products
in market structure
(In billions of 1963 dollars)
Products, total.................

Final products............
Consumer goods. . .
Equipment...............
Intermediate products.
For N ote see p. A-51.




286.3 449.8 451.8 452.9 446.2 449

221.4
156.3
65.3
64.9

346.1
239.7
106.4
103.7

347.8
241.3
106.6
104.3

347.7
241.0
106.6
104.

341.9
235.4
106.6
104.6

346.3
239.0
107.3
103.5

452.6 456.9 449.1 445.4 442.5 443.9 445.2 448.7 447.1

349.7
241.7
108.0
103.1

353.3
243.6
109.5
103.6

346.9
237.8
109.0
102.5

342.5
233.6
108.9
103.1

339.9
230.6
109.1
102.6

342.3
232.7
109.4
101.9

343.1
234.0
109.2
102.1

346.5
236.0
110.5
102.1

344.4
234.9
109.6
102.9

JU L Y 1974 □ IN D U STR IA L P R O D U C TIO N : S.A.

A 51

INDUSTRY GROUPINGS
(1967 = 100)

1967
propor­
tion

Grouping

Durable............................................
Nondurable......................................
Mining and utilities.............................

age

1974

1973

1973

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar . r Apr.

May*

88.55 125.2 125.6 126.5 126.1 126.3 126.4 127.4 126.4 125.3 124.5 124.6 124.8 125.6 125.5
122.1 123.0 123.8 122.6 123.3 123.5 124.3 123.1 121.1 119.4 120.4 120.6 121.9 122.0

52.33
36.22
11.45
6.37
5.08

129.6
128.9
110.2
152.3

129.3
128.2
109.5
151.5

130.5
130.4
111.0
154.8

130.9
130.7
111.5
154.8

130.7
131.3
111.8
155.8

130.4
131.5
111.9
156.2

131.1
127.8
111.6
148.7

130.8
127.6
111.1
148.5

128.2 127.6 128.1

128.8

131.3 131.2 131.4 131.5 130.9
130.6 126.9 125.4 126.9 127.3
111.7 112.2
154.6 147.6 144.9 146.1 146.5
111. 3 110.4 109.9

130.8
127.9
111.3
148.7

Durable manufactures
Primary metals.................................
Iron and steel, subtotal...............
Fabricated metal products..............
Machinery.........................................
Nonelectrical machinery.............

12.55 128.8 128.7 130.6 129.5 129.5 130.6 131.0 130.5 130.4 127.6

6.61 127.1 124.5 128.1 125.6 127.8 128.7 128.9 130.7 129.5 125.0 125.3 124.3 125.0 126.0
4.23 121.6 119.9 120.9 118.5 122.7 123.6 124.2 127.7 125.5 119.4 119.6 116.4 117.5 118.3
5.94 130.7 133.4 133.5 133.8 131.5 132.4 133.1 130.0 131.4 130.6 131.6 131.3 131.6 131.8

32.44 117.3 118.8 119.3 117.7 118.9 118.9 119.9 118.6 115.2 113.8 114.8 115.2 117.0 116.9
17.39 125.9 126.9 127.6 128.5 130.0 129.2 130.4 130.9 128.6 121.2 128.4 128.0 129.6 129.7

130.5
125.3
97.3
116.5
78.8
143.8
84.7

Lumber, clay, and glass .......................

4.44 129.5 129.2 129.8 129.2 128.8 129.7 129.3 127.8 129.7 127.4
1.65 128.9 126.6 125.4 128.4 128.9 127.4 127.3 126.3 126.1 127.1

128.1

130.2 130.4 129.3

Furniture and miscellaneous.................

2.90 135.2 135.4 135.9 137.5 138.2 136.1

Lumber and products.....................
Clay, glass, and stone products----

Furniture and fixtures.....................
Miscellaneous manufactures...........

125.1
126.8
109.2
138.1
81.4
138.4
85.4

126.1
127.8
112.2
143.3
82.2
140.2
86.7

127.1
128.0
112.1
144.1
81.3
140.8
86.7

130.0
129.8
107.3
133.9
81.7
141.5
83.7

130.0
128.5
108.8
136.4
82.3
141.0
83.8

130.3
130.5
109.8
137.8
82.9
142.6
84.3

130.2
131.6
103.0
124.6
82.2
142.7
86.1

131.5
127.4
100.4
119.2
82.2
143.8
85.1

131.5
127.5
99.6
118.4
81.6
144.6
85.4

129.8
126.8
95.0
110.2
80.3
142.8
84.9

9.17
8.22
9.29
4.56
4.73
2.07
3.69

128.9
128.2
105.7
131.0
81.3
140.9
83.8

129.4
127.7
95.7
112.7
79.3
143.0
85.2

128.1
126.2
93.9
109.2
79.3
142.8
84.2

Transportation equipment..............
Motor vehicles and parts............
Aerospace and misc. trans. e q ...
Instruments.......................................
Ordnance, private and Govt...........

126.1 130.3 130.3
2.79 129.9 130.5 132.3 129.6 128.8 131.2 130.4 128.7 131.8 127.6 129.3 130.1 130.4

136.4 135.3 133.4 135.2 136.8 136.8 136.4 137.2

1.38 126.3 126.5 127.5 129.5 130.4 128.8 127.9 124.9 124.2 125.4 126.8 128.8 128.0
1.52 143.3 143.6 143.5 144.9 145.3 142.9 144.3 144.5 141.8 144.2 145.8 144.1 144.1

Nondurable manufactures
Textiles , apparel, and leather ..............

Textile mill products.......................
Apparel products.............................

Paper and printing ...............................

Paper and products.........................

Chemicals, petroleum, and rubber . . ..

Chemicals and products..................
Petroleum products.........................
Rubber and plastics products.........

Foods and tobacco ...............................

Foods................................................
Tobacco products............................

6.90 114.7 115.0 114.5 115.4 117.5 116.8 116.7 118.8 116.2 115.3 112.4 109.5 110.3 109.1
2.69 127.1 129.2 128.9 129.0 130.2 130.2 129.4 130.9 128.4 127.6 125.0 122.2 124.9

3.33 112.9 111.0 112.1 113.6 115.4 114.9 115.3 118.5 116.4 113.6 110.0 105.8
.88 83.6 86.6 79.2 81.0 86.4 83.1 82.9 82.9 77.6 83.7 83.0 84.4

83.0

122.1 122.8 123.8 124.5 122.1 121.3 121.9 121.2 121.7 122.2

122.5 123.5

122.3 123.0

11.92 149.3 149.8 151.8 151.0 150.9 151.1 151.6 151.6 151.5 151.2

151.3 153.1

153.5 153.4

121.9 119.5 121.3 122.0 122.2 121.7 124.7 123.0 125.4 126.2

125.3

124.8

125.4 124.8

1.26 118.1 111.8 116.9 120.6 120.4 120.9 121.3 122.0 121.4 119.9

119.7

117.2 118.0 115.1

7.92

3.18 135.4 134.6 135.3 137.0 134.8 135.3 136.2 136.7 138.7 137.6 140.2 141.2 136.7
4.74 113.2 114.8 116.0 116.2 113.6 112.1 112.3 110.8 110.4 111.9 110.7 111.7 112.6 i i 35

7.86 150.1 150.4 152.0 151.4 153.0 152.7 153.0 154.5 154.9 155.3 155.5 156.3 156.9 156.4
1.80 127.4 129.7 129.3 128.2 126.0 130.4 129.5 125.5 120.5 116.9 117.3 124.6 124.9 125.4
2.26 164.0 163.9 168.8 167.9 163.6 161.9 164.5 162.3 164.3 163.5 164.2 165.1 164.9
9.48

8.81 122.7 120.3 122.4 122.9 123.2 122.4 125.4 124.5 126.3 127.2 126.5 126.0 126.6 126.0
.67 111.6 108.1 105.3 110.1 109.1 113.7 115.8 104.2 113.3 112.1 110.4 109.6

Mining
Metal mining...................................
Stone and earth minerals................
Coal, oil, and ga s .................................

.51 130.8 121.6 128.4 131.4 136.6 138.3 135.2 135.2 135.2 132.2 132.9 126.6 128.3
.75 109.5 105.2 109.1 113.1 109.5 109.2 111.7 113.1 111.9 111.6 110.7 110.7 111.0

5.11

108.3 108.9 109.5 109.2 109.5 109.7 108.8 107.5 107.0 109.6

110.2 109.8 110.0 110.2

.69 103.6 108.0 109.0 104.0 109.8 103.0 104.1 110.4 108.7 112.7 114.7 110.3 113.6 114.7
4.42 109.0 109.1 109.5 110.0 109.7 110.8 109.6 107.0 106.8 109.1 109.5 109.7 109.5 109.5

Utilities
Electric..................................................
G as.......................................................
N o t e . —Data

3.91 160.7 159.7 164.0 163.8 165.1 165.3 163.4 155.6 153.0 154.6 155.1
1.17 124.2

for the complete year of 1972 are available in a pamphlet

Industrial Production Indexes 1972 from Publications Services, Division

of Administrative Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.

Published groupings include series and subtotals not shown sepa­
rately. Figures for individual series and subtotals are published in the
monthly Business Indexes release.

Indexes without seasonal adjustment are no longer being published in the Bulletin,
but they are available in the Board‘s monthly release ’’Industrial Production (the
G.12.3), which is available upon request to Publications Services, Board of Governors
o f the Federal Reserve System, Washington, D.C. 20551.




158.3

A 52

BUSINESS A C TIV ITY ; C O N S TR U C TIO N □ JU L Y 1974
S EL EC TE D

B U S IN E S S

IN D EX ES

(1967= 100, except as noted)
Industrial production
In­
dustry

Ca­
pacity
utiliza­
tion
in mfg.
Manu­ (1967
Inter­ Mate­ factur­ output
= 100)
ing
mediate rials

Market
Period

Products

Total

Final
Total

Con­
sumer Equip­
goods ment

Total

Manu­
facturing 2
NonagCon­ riculstruc­ tural
tion
em­
con­
ploy­
Em­
tracts ment— ploy­
Total i ment

Prices 4

Total
retail
sales 3

Pay­
rolls

Con­
sumer

Whole­
sale
com­
modity

195
195
195
195
195

5
6
7
8
9

58.5
61.1
61.9
57.9
64.8

56.6
59.7
61.1
58.6
64.4

54.9
58.2
59.9
57.1
62.7

59.5
61.7
63.2
62.6
68.7

48.9
53.7
55.9
50.0
54.9

62.6
65.3
65.3
63.9
70.5

61.5
63.1
63.1
56.8
65.5

58.2
60.5
61.2
56.9
64.1

90.0
88.2
84.5
75.1
81.4

76.9
79.6
80.3
78.0
81.0

92.9
93.9
92.2
83.9
88.1

61.1
64.6
65.4
60.3
67.8

59
61
64
64
69

80.2
81.4
84.3
86.6
87.3

87.8
90.7
93.3
94.6
94.8

196
196
196
196
196

0
1
2
3
4

66.2
66.7
72.2
76.5
81.7

66.2
66.9
72.1
76.2
81.2

64.
65.3
70.
74.9
79.6

71.3
72.8
77.7
82.0
86.

56.4
55.6
61.9
65.6
70.1

71.0
72.4
76.9
81.1
87.3

66.4
66.4
72.4
77.0
82.6

65.4
65.6
71.4
75.8
81.2

80.1
77.6
81.4
83.0
85.5

86.1
89.4

82.4
82.1
84.4
86.1
88.6

88.0
84.5
87.3
87.8
89.3

68.8
68.0
73.3
76.0
80.1

70
70
75
79
83

88.7
89.6
90.6
91.7
92.9

94.9
94.5
94.8
94.5
94.7

196
196
196
196
196

5
6
7
8
9

89.2 88.1 86.8 93.0 78.7 93.0
96.1 98.6 93.0 99.2
97.9 96.
100.0 100.0 100.0 100.0 100.0 100.0
105.8 106.6 104.7 105.7
105.7 105.
110.7 109.7 109.0 111.1 106.1 112.0

91.0
99.8
100.0
105.7
112.4

89.1
98.3
100.0
105.7
110.5

89.0 93.2
91.9 94.8
87.9 100.0
87.7 113.2
86.5 123.7

92.3
97.1
100.0
103.1
106.7

93.9
99.9
100.0
101.4
103.2

88.1
97.8
100.0
108.3
116.6

91
97
100
109
114

94.5
97.2
100.0
104.2
109.8

96.6
99.8
100.0
102.5
106.5

197
197
197
197

0
1
3

106.6
106.8
115.2
125.6

106.0
106.4
113.
123.4

104.5
104.7
111.9
121.3

110.3 96.3
115.7 89.4
123.6 95.5
131.7 106.7

111.7
112.6
121.1
131.1

107.7
107.4
117.4
129.3

105.2
105.2
114.0
125.2

78.3
75.0
r78.6
83.0

123.1
145.4
165.3
183.3

107.2
107.3
110.5
114.8

98.0
93 9
96.7
101.9

114.1
116.3
130.2
146.9

120
122
142

116.3
121.2
125.3
133.1

110.4
113.9
119.8
134.7

1973—May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec..

124.
125.6
126.7
126.5
126.8
127.0
127.5
126

122.9
123.7
124.2
123.7
124.3
124
125.3
124.0

120.8
121.3
122.1
121.4
122.4
122.7
123.7
122.6

131.
131.9
132.8
131.2
132.3
132.6
133.5
131.3

105.7
106.6
107.3
107.6
108.5
108.9
110.1
110.1

130.5
132.0
132.5
132.1
131.0
130.6
131.1
129.1

128.3
129.0
130.9
130.9
131.3
131.1
131.5
130.7

124.9
125.6
126.5
126.1
126.3
126.4
127.4
126.4

173.0
>5r83.3 183.0
175.0
* 83.3 199.0
182.0
191.0
> 82.6 194.0
161.0

114.4
114.7
114.6
115.0
115.3
116.0
116.4
116.4

101.7
102.1
101.8
102.1
102.1
102.9
103.3
103.2

144.9
145.3
146.3
146.7
149.8
151.7
155.8
153.7

159
157
163
162
163
164
164
161

131.5
132.4
132.7
135.1
135.5
136.6
137.6
138.5

133.2
136.0
134.3
142.1
139.7
138.7
139.2
141.8

1974—Jan..
Feb..
Mar.
Apr.,
May,
June

125.4
124.6
124.7
124.9
125.5
125.5

122.9
122.4
122.6
122.8
123.4
123.1

121.2
120.6
121.0
121.0
121.9
121.1

129.2
128.3
128.5
128.7
129.5
128.7

109.8
109.9
110.1
110.4
111.3
110.5

129.2
129.1
128.2
129.3
129.6
130.4

129.7
128.3
128.8
128.5
129.0
129.4

125.3
155.0 116.2
124.5 | r80.5 187.0 116.6
124.6
181.0 116.6
124.8
179.0 116.8
125.6 \ 80.1 188.0 rl 17.2
125.5
117.1

102.6 151.6
101.8 151.1
101.5 150.5
101.9 147.9
r102.0 M54.5
101.8 154.8

164
165
168
169
171
169

139.7
141.5
143.1
144.0
145.6

146.6
149.5
151.4
152.7
155.0
155.7

2

1 Employees only: excludes personnel in the Armed Forces.
2 Production workers only.
3 F.R. index based on Census Bureau figures.
4 Prices are not seasonally adjusted. Latest figure is final.
5 Figure is for second quarter 1973.
N o t e . —All series: Data are seasonally adjusted unless otherwise noted.
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept, of Commerce.

Construction contracts; McGraw-Hill Informations Systems Company
F.W. Dodge Division, monthly index of dollar value of total construction
contracts, including residential, nonresidential, and heavy engineering;
does not include data for Alaska and Hawaii.
Employment and payrolls: Based on Bureau of Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau of Labor Statistics data.

C O N S T R U C T IO N C O N T R A C T S A ND PRIVATE H O U S IN G P E R M IT S
(In millions of dollars, except as noted)

Type of ownership and
type of construction

1972

1973

1972
Dec.

1973
May

June

July

Aug.

Sept.

1974
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

f otal construction 1.........................

90,979 101,071 6,423 9,428 9,910 9,228 10,303 8,151 8,983 7,905 6,133 5,954 6,610 7,911 8,929

By type of ownership:
Public........................................
Private 1....................................

24,043 26,686 1,629 2,359 2,995 2,581 2,968 2,328 2,055 2,140 1,855 2,135 2,212 2,481 2,336
66,936 73,385 4,793 7,069 6,916 6,647 7,335 5,822 6,928 5,765 4,277 3,819 4,398 5,430 6,593

By type of construction:
Residential building 1.............. 44,975 46,246 3,115 4,754 4,612 4,224 4,233 3,638 3,673 3,299 2,341 2,231 2,678 3,374 3,924
Nonresidential building........... 27,021 31,761 2,189 2,629 2,976 2,991 3,241 2,719 2,758 2,655 2,210 2,307 2,260 2,752 2,842
Nonbuilding............................. 18,983 22,064 1,119 2,045 2,322 2,013 2,828 1,794 2,552 1,951 1,581 1,415 1,672 1,785 2,163
Private housing units authorized...
(In thousands, S.A., A.R.)

2,219

1,796 2,399 1,838 2,030 1,780 1,750 1,596 1,316 1,314 1,237 1,301 1,333 1,461

1 Because of improved procedures for collecting data for 1-family homes,
some totals are not strictly comparable with those prior to 1968. To im­
prove comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.
N ote.—D ollar value o f construction contracts as reported by the




1,300

McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data exceed annual totals because adjustments—
negative—are made in accumulated monthly data after original figures
have been published.
Private housing units authorized are Census Bureau series for 14,000
reporting areas with local building permit systems; 1971 data are for
13,000 reporting areas.

JULY 1974 □ CONSTRUCTION

A 53

VALUE O F NEW C O N ST R U C T IO N ACTIVITY
(In millions of dollars)
Private

Public

Nonresidential
Period

Total
Total

Buildings

Resi­
dential

Total

Indus­
trial

Com­
mercial

Other
build­
ings 1

Other

Total

Mili­
tary

High­
way

Conser­
vation
Other 2
and
develop­
ment

1962 3 .......................... 59,965
1963 4 .......................... 64,563
1964 ............................. 67,413

42,096
45,206
47,030

25,150
27,874
28,010

16,946
17,332
19,020

2,842
2,906
3,565

5,144
4,995
5,396

3,631
3,745
3,994

5,329
5,686
6,065

17,869
19,357
20,383

1,266
1,179
910

6,365
7,084
7,133

1,523
1,694
1,750

8,715
9,400
10,590

1965
1966
1967
1968
1969

51,350
51,995
51,967
59,021
65,404

27,934
25,715
25,568
30,565
33,200

23,416
26,280
26,399
28,456
32,204

5,118
6,679
6,131
6,021
6,783

6,739
6,879
6,982
7,761
9,401

4,735
5,037
4,993
4,382
4,971

6,824
7,685
8,293
10,292
11,049

22,062
24,007
25,536
27,605
27,964

830
727
695
808
879

7,550
8,405
8,591
9,321
9,250

2,019
2,194
2,124
1,973
1,783

11,663
12,681
14,126
15,503
16,052

1970..............................
1971r ............................
1972r ............................
1973 r ............................

94,167 66,071
109,950 80,079
124,077 93,893
135,437 102,875

31,864
43,267
54,288
57,604

34,207
36,812
39,605
45,271

6,538
5,423
4,676
6,243

9,754
11,619
13,462
15,453

5,125
5,437
5,898
5,888

12,790
14,333
15,569
17,687

28,096
29,871
30,184
32,562

718
901
1,087
1,170

9,981
10,658
10,429
10,559

1,908
2,095
2,172
2,313

15,489
16,217
16,496
18,520

1973'-M ay...................
June..................
July...................
Aug...................
Sept...................
Oct....................
Nov...................
Dec....................

134,547
134,694
137,172
137,351
137,283
136,363
135,594
133,169

101,931
103,209
105,562
105,475
104,119
130,197
102,172
100,057

57,582
58,208
59,145
59,280
58,048
56,233
54,450
52,304

44,349
45,001
46,417
46,195
46,071
46,964
47,722
47,753

5,776
6,035
6,477
6,436
6,820
6,748
7,080
7,343

15,426
15,586
15,976
15,754
15,446
15,762
16,054
15,890

5,926
6,019
6,093
5,854
5,674
5,860
5,727
5,913

17,221
17,363
17,871
18,151
18,131
18,594
18,861
18,607

32,616
31,485
31,610
31,876
33,164
33,166
33,422
33,112

1,286
1,167
1,231
1,100
1,026
1,079
1,060
1,082

10,023
9,988
10,727
10,606
11,128
10,566
10,952
11,168

2,479
2,264
2,097
2,226
2,354
2,300
2,362
2,314

18,828
18,066
17,555
17,944
18,656
19,221
19,048
18,548

1974—Janr...................
Feb.' .................
M ar . r ...............
Apr....................
M ay^................

132,487
136,274
135,483
136,154
135,209

97,647
98,762
99,045
98,832
99,236

49,802
49,071
49,209
49,558
49,740

47,845
49,691
49,836
49,274
49,496

6,831
7,869
7,500
6,920
7,515

15,762
16,650
16,652
16,296
16,134

6,058
6,143
6,336
6,264
5,997

19,194
19,029
19,348
19,794
19,850

34,840
37,512
36,438
37,322
35,973

1,305
1,361
1,401
1,507
1,178

.............................
.............................
.............................
.............................
.............................

73,412
76,002
77,503
86,626
93,368

1 Includes religious, educational, hospital, institutional, and other buildings.
2 Sewer and water, formerly shown separately, now included in “Other.”
3 Beginning July 1962, reflects inclusion of new series affecting most
private nonresidential groups.

4 Beginning 1963, reflects inclusion of new series under “Public” (for
State and local govt, activity only).
N o t e . — Census

Bureau data; monthly series at seasonally adjusted
annual rates.

NEW H O U S IN G U N IT S
(In thousands)
Units started
Private (S.A., A.R •)
Period
Region

Type of structure

Total
North­ North South
east
Central

West

5- or
12- to 4- morefamily family family

Total
1,635
1,561

Mobile
home
ship­
ments
(N.S.A.)

Governmentunderwritten
(N.S.A.)

Private and public
(N.S.A.)

Private Public

Total

FHA

VA

1,603
1,529

32
32

292
264

221
205

71
59

151
191

1963.........................
1964.........................

1,603
1,529

261
254

328
340

591
578

430
357

1,012
970

1965.........................
1966.........................
1967.........................
1968.........................
1969.........................

1,473
1,165
1,292
1,508
1,467

270
206
215
227
206

362
288
337
369
349

575
472
520
618
588

266
198
220
294
324

964
778
844
900
814

87
61
72
81
85

422
325
376
527
571

1,510
1,196
1,322
1,546
1,500

1,473
1,165
1,292
1,508
1,467

37
31
30
38
33

246
195
232
283
284

197
158
180
227
233

49
37
53
56
51

216
217
240
318
413

1970.........................
1971.........................
1972.........................
1973.........................

1,434
2,052
2,357
2,045

218
264
330
277

294
434
443
440

612
869
1,057
897

310
486
527
428

813
1,151
1,309
1,132

85
120
141
118

536
781
906
795

1,469
2,084
2,379
2,057

1,434
2,052
2,357
2,045

35
32
22
12

482
621
475
247

421
528
371
161

61
93
104
86

401
497
576
567

1973—Apr............... 2,153
M ay.............. 2,330
June.............. 2,152
July............... 2,152
Aug............... 2,030
Sept............... 1,844
Oct................ 1,674
Nov............... 1,675
Dec............... 1,403

293
294
345
245
255
281
242
241
192

397
531
485
475
466
431
383
322
278

908
983
873
1,020
844
748
715
750
654

555
522
449
412
465
384
334
362
279

1,231
1,243
1,140
1,232
1,108
990
957
938
767

127
159
127
144
107
97
81
84
73

795
929
886
776
814
757
637
653
563

205
234
203
203
200
149
149
135
91

205
234
203
203
197
148
147
133
90

1
1
3
1
2
1

26
28
25
20
23
15
15
17
11

17
18
17
12
14
10
9
12
7

9
11
8
8
9
6
6
5
4

60
56
56
49
53
44
45
39
28

1974—Jan................
Feb...............
Mar . r........
A pr.r ............
May?>............

258
337
212
196
170

330
386
332
326
306

650
871
620
748
627

226
328
335
361
347

793
1,056
962
996
929

89
84
87
89
91

582
782
450
546
430

86
110
127
161
148

85
109
125
160
147

13
12
14
13

9
8
8
6

4
4
6
7
8

29
30
37
42

1,464
1,922
1,499
1,631
1,450

N o t e . — Starts are Census Bureau series (including farm starts) except
for Govt.-underwritten, which are from Federal Housing Admin, and
Veterans Admin, and represent units started, including rehabilitation




5139
108
450

2
2
1
1

units under FHA, based on field office reports of first compliance inspec­
tions. Data may not add to totals because of rounding.
Mobile home shipments are as reported by Mobile Homes Manufac­
turers Assn.

A 54

EM PLO YM ENT □ JU L Y 1974
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands of persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)

Period

Not in
labor force
(N.S.A.)

Total
labor
force
(S.A.)

Unem­
ployed

Unemploy­
ment
rate2
(per cent;
S.A.)

Employed1
Total
Total

In nonagricultural
industries

In
agriculture

1968..........................
1969...........................
1970...........................
1971...........................
1972...........................
1973...........................

135,562
137,841
140,182
142,596
145,775
148,263

53,291
53,602
54,280
55,666
56,785
57,222

82,272
84,240
85,903
86,929
88,991
91,040

78,737
80,734
82,715
84,113
86,542
88,714

75,920
77,902
78,627
79,120
81,702
84,409

72,103
74,296
75,165
75,732
78,230
80,957

3,817
3,606
3,462
3,387
3,472
3,452

2,817
2,832
4,088
4,993
4,840
4,304

3.6
3.5
4.9
5.9
5.6
4.9

1973—June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec................

148,147
148,361
148,565
148,782
149,001
149,208
149,436

55,417
55,133
56,129
57,484
56,955
57,040
57,453

91,133
91,139
91,011
91,664
92,038
92,186
92,315

88,818
88,828
88,704
89,373
89,749
89,903
90,033

84,518
84,621
84,513
85,133
85,649
85,649
85,669

81,088
81,109
81,088
81,757
82,194
82,088
82,026

3,430
3,512
3,425
3,376
3,455
3,561
3,643

4,300
4,207
4,191
4,240
4,100
4,254
4,364

4.8
4.7
4.7
4.7
4.6
4.7
4.8

1974—Jan.................
Feb.................
Mar................
Apr................
May...............
June...............

149,656
149,857
150,066
150,283
150,507
150,710

58,303
58,165
58,183
58,547
58,349
55,953

92,801
92,814
92,747
92,556
92,909
93,130

90,543
90,556
90,496
90,313
90,679
90,919

85,811
85,803
85,863
85,775
85,971
86,165

82,017
81,951
82,164
82,264
82,514
82,872

3,794
3,852
3,699
3,511
3,457
3,293

4,732
4,753
4,633
4,538
4,708
4,754

5.2
5.2
5.1
5.0
5.2
5.2

1 Includes self-employed, unpaid family, and domestic service workers.
2 Per cent of civilian labor force.
Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. Monthly data relate
N o te .—

to the calendar week that contains the 12th day; annual data are averages
of monthly figures. Description of changes in series beginning 1967 is
available from Bureau of Labor Statistics.

E M PLO Y M EN T IN N O N A G RICU LTU R A L E S T A B L ISH M E N T S , BY IN D U STR Y D IVISION
(In thousands of persons)
Contract
construc­
tion

Period

Total

Manufac­
turing

1968.........................................................
1969.........................................................

67,915
70,284
70,593
70,645
72,764
75,567

19,781
20,167
19,349
18,529
18,933
19,820

606
619
623
602
607
625

3,285
3,435
3,381
3,411
3,521
3,648

1973—May..............................................
June..............................................
July..............................................
Aug...............................................
Sept..............................................
Oct................................................
Nov..............................................
Dec...............................................

75,321
75,526
75,493
75,747
75,961
76,363
76,679
76,626

19,782
19,856
19,804
19,861
19,882
20,016
20,095
20,090

608
629
631
634
633
639
644
646

1974—Jan................................................
Feb...............................................
Mar..............................................
Apr...............................................
May*............................................
June*............................................

76,526
76,813
76,804
76,941
77,155
77,107

20,006
19,904
19,851
19,921
19,940
19,918

1973—May..............................................
June..............................................
July..............................................
Aug...............................................
Sept...............................................
Oct................................................
Nov..............................................
Dec...............................................

75,404
76,308
75,384
75,686
76,238
76,914
77,322
77,391

1974—Jan................................................
Feb...............................................
Mar..............................................
Apr...............................................
May*............................................
June*............................................

75,620
75,792
76,117
76,706
77,248
77,904

1972.........................................................
1973.........................................................

Transporta­
tion & pub­
lic utilities

Trade

Finance

Service

Govern­
ment

4,310
4,429
4,493
4,442
4,495
4,611

14,084
14,639
14,9.14
15,142
15,683
16,288

3,382
3,564
3,688
3,796
3,927
4,053

10,623
11,229
11,612
11,869
12,309
12,866

11,845
12,202
12,535
12,856
13,290
13,657

3,620
3,654
3,680
3,676
3,700
3,694
3,711
3,732

4,593
4,597
4,598
4,617
4,629
4,671
4,654
4,644

16,256
16,262
16,294
16,352
16,388
16,465
16,520
16,398

4,044
4,049
4,048
4,064
4,078
4,088
4,095
4,101

12,776
12,820
12,828
12,906
12,995
13,044
13,122
13,128

13,642
13,659
13,610
13,637
13,656
13,746
13,838
13,887

654
656
655
659
664
665

3,636
3,757
3,725
3,659
3,661
3,611

4,684
4,691
4,676
4,668
4,661
4,649

16,417
16,472
16,487
16,549
16,605
16,597

4,109
4,124
4,127
4,130
4,143
4,129

13,136
13,215
13,240
13,248
13,331 .
13,386

13,884
13,994
14,043
14,107
14,150
14,152

19,667
20,002
19,729
20,018
20,132
20,168
20,202
20,110

608
642
644
648
641
640
643
642

3,616
3,837
3,934
3,981
3,944
3,923
3,822
3,639

4,593
4,661
4,653
4,659
4,671
4,680
4,659
4,644

16,200
16,335
16,262
16,279
16,367
16,515
16,780
17,113

4,040
4,089
4,113
4,121
4,082
4,076
4,079
4,080

12,865
12,999
12,982
13,009
12,982
13,057
13,096
13,062

13,815
13,743
13,067
12,971
13,419
13,855
14,041
14,101

19,818
19,738
19,726
19,777
19,827
20,064

642
641
642
653
664
679

3,280
3,329
3,405
3,527
3,657
3,792

4,618
4,616
4,634
4,635
4,661
4,714

16,290
16,127
16,187
16,429
16,546
16,672

4,072
4,087
4,102
4,118
4,139
4,170

12,913
13,056
13,147
13,274
13,424
13,573

13,987
14,198
14,274
14,293
14,330
14,240

Mining

SEASONALLY ADJUSTED

NOT SEASONALLY ADJUSTED

N o t e . —Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period that includes the 12th of the month. Proprietors, self-employed




persons, domestic servants, unpaid family workers, and members of
Armed Forces are excluded.
Beginning with 1970, series has been adjusted to Mar. 1971 bench­
mark.

JU L Y 1974 □ PRICES

A 55

CONSUMER PRICES
(1967 = 100)

Housing
All

Period

ite m s

1929..........
1933..........
1941..........
1945..........
1960..........
196 5

Food
Total

51.3
38.8
44.1
53.9
88.7
94.5

48.3
30.6
38.4
50.7
88.0
94.4

53.7
59.1
90.2
94.9

76.0
54.1
57.2
58.8
91.7
96.9

Gas
and

ship

Fuel
oil
and
coal

tricity

86.3
92.7

40.5
48.0
89.2
94.6

81.4
79.6
98.6
99.4

Homeowner-

Rent

Health and recreation

e le c ­

Fur­ Apparel Trans­
nish­
and
porta­
ings upkeep tion
and
opera­
tion

Total

Med­
ical
care

Per­
sonal
care

Read­ Other
ing
goods
and
and
recrea­ serv­
tion
ices

93.8
95.3

48.5
36.9
44.8
61.5
89.6
93.7

44.2
47.8
89.6
95.9

85.1
93.4

37.0
42.1
79.1
89.5

41.2
55.1
90.1
95.2

47.7
62.4
87.3
95.9

49.2
56.9
87.8
94.2

196
196
196
196

6
7
8
9

97.2
100.0
104.2
109.8

99.1
100.0
103.6
108.9

97.2
100.0
104.2
110.8

98.2 96.3
100.0 100.0
102.4 105.7
105.7 116.0

97.0
100.0
103.1
105.6

99.6
100.0
100.9
102.8

97.0
100.0
104.4
109.0

96.1
100.0
105.4
111.5

97.2
100.0
103.2
107.2

96.1
100.0
105.0
110.3

93.4
100.0
106.1
113.4

97.1
100.0
104.2
109.3

97.5
100.0
104.7
108.7

97.2
100.0
104.6
109.1

197
197
197
197

0
1
2
3

116.3
121.3
125.3
133.1

114.9
118.4
123.5
141.4

118.9
124.3
129.2
135.0

110.1
115.2
119.2
124.2

128.5
133.7
140.1
146.7

110.1
117.5
118.5
136.0

107.3
114.7
120.5
126.4

113.4
118.1
121.0
124.9

116.1
119.8
122.3
126.8

112.7
118.6
119.9
123.8

116.2
122.2
126.1
130.2

120.6
128.4
132.5
137.7

113.2
116.8
119.8
125.2

113.4
119.3
122.8
125.9

116.0
120.9
125.5
129.0

1973—May,
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.

131.5
132.4
132.7
135.1
135.5
136.6
137.6
138.5

137.9
139.8
140.9
149.4
148.3
148.4
150.0
151.3

133.3
133.9
134.2
135.2
136.6
138.1
139.4
140.6

123.5
123.9
124.3
125.0
125.4
125.9
126.3
126.9

144.2
145.0
145.2
147.0
149.2
151.5
152.6
153.6

129.3
131.6
131.7
132.8
133.6
141.1
155.6
172.8

125.7
125.4
125.5
125.8
126.5
127.4
129.8
131.0

123.9
124.7
125.0
125.3
126.1
126.7
127.5
128.0

126.7
126.8
125.8
126.5
128.3
129.6
130.5
130.5

123.5
124.6
124.8
124.5
123.9
125.0
125.8
126.7

129.6
130.0
130.3
130.5
131.1
132.1
132.6
133.0

136.6
137.0
137.3
137.6
138.3
140.6
140.9
141.4

124.4
124.9
125.3
125.7
126.3
127.3
128.1
129.2

125.6
125.9
126.2
126.1
126.8
127.2
127.5
127.6

128.5
129.0
129.5
129.4
129.9
130.3
130.8
131.3

1974—Jan..
Feb.
Mar.
Apr.
May

139.7
141.5
143.1
144.0
145.6

153.7
157.6
159.1
158.6
159.7

142.2
143.4
144.9
146.0
147.6

127.3
128.0
128.4
128.8
129.3

154.8
155.8
157.2
158.2
159.4

194.6
202.0
201.5
206.5
211.0

134.3
137.3
140.0
141.91
143.9

129.0
130.1
132.6
134.0
137.0

128.8
130.4
132.2
133.6
135.0

128.1
129.3
132.0
134.4
137.6

133.7
134.5
135.4
136.3
137.7

142.2
143.4
144.8
145.6
147.2

129.8
130.8
131.8
133.1
134.9

128.3
128.9
129.5
130.4
132.0

131.8
132.3
132.8
133.6
134.4

N o t e . —Bureau
clerical workers.

of

Labor Statistics index for city wage-earners and

W HOLESALE PR IC E S : SUM M ARY
(1967 = 100, except as noted)
Industrial commodities

Period

1960.............................
1965.............................

Pro­
All Farm cessed
Ma­
Non­ Trans­
com­ prod­
foods
me­ porta­ Mis­
Tex­ Hides, Fuel, Chem­ Rub­ Lum­ Paper, Met­ chin­
modi­ ucts
and Total i tiles,
ery Furni­
tallic tion cella­
als,
ture,
icals,
ber,
ties
ber,
etc.
etc. 1 etc.
etc.
and
feeds
etc. equip­
etc.
min­ equip­ neous
etc.
etc.
etc.
erals ment1
ment
94.9
96.6

97.2
98.7

89.5
95.5

95.3
96.4

99.5
99.8

90.8
94.3

96.1 101.8 103.1
95.5 99.0 95.9

95.3
95.9

98.1
96.2

92.4
96.4

92.0
93.9

99.0
96.9

93.0
95.9

97.2
97.5

97.7
1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4
100.0
1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
102.2
1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7
1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2
1970.............................
1971.............................
1972.............................
1973.............................

110.4
113.9
119.1
134.7

111.0
112.9
125.0
176.3

112.0
114.3
120.8
148.1

110.0
114.0
117.9
125.9

107.2
108.6
113.6
123.8

110.1
114.0
131.3
143.1

105.9
114.2
118.6
134.3

102.2
104.2
104.2
110.0

108.6
109.2
109.3
112.4

113.7
127.0
144.3
177.2

108.2
110.1
113.4
122.1

116.7
119.0
123.5
132.8

111.4
115.5
117.9
121.7

107.5
109.9
111.4
115.2

113.3
122.4
126.1
130.2

104.5
110.3
113.8
115.1

109.9
112.8
114.6
119.7

1973—June.................
July...................
Aug...................
Sept..................
Oct....................
Nov..................
Dec...................

136.0
134.3
142.1
139.7
138.7
139.2
141.8

182.3
173.3
213.3
200.4
188.4
184.0
187.2

151.8
146.5
166.2
156.3
153.1
151.9
155.7

126.0
126.1
126.7
127.4
128.5
130.1
132.2

123.7
124.2
125.2
126.8
128.5
130.0
131.4

140.9
141.4
143.0
143.8
143.8
143.0
141.9

133.4
134.7
135.2
137.4
139.3
144.1
151.5

110.4
110.8
111.0
111.5
112.7
113.5
115.6

112.6
112.9
113.1
112.8
114.0
114.8
116.5

183.1
177.8
178.8
181.9
180.3
184.7
186.1

122.0
122.3
123.3
124.4
125.8
127.6
128.7

132.5
132.8
133.7
134.4
135.9
138.5
141.8

121.9
122.0
122.3
122.6
123.1
123.8
124.6

115.2
115.2
115.9
116.0
116.6
117.2
117.5

131.1
130.0
130.0
129.9
130.9
131.5
132.6

115.0
115.0
115.1
114.5
115.9
116.1
117.3

120.2
120.9
121.0
121.1
121.0
121.3
121.6

1974—Jan....................
Feb...................
Mar..................
Apr...................
May.................
June.................

146.6
149.5
151.4
152.7
155.0
155.7

202.6
205.6
197.0
186.2
180.8
168.6

162.1
164.7
163.0
159.1
158.9
157.4

135.3
138.2
142.4
146.6
150.5
153.6

133.8
135.2
136.1
137.5
139.1
141.7

142.6
143.4
143.4
145.4
146.3
146.0

162.5
177.4
189.0
197.9
204.3
210.5

118.2
120.2
127.3
132.3
137.0
142.8

117.7
119.8
123.8
129.4
133.7
135.6

183.7
184.1
191.3
200.2
198.0
192.2

131.8
132.9
137.2
114.4
146.6
147.5

145.0
148.0
154.7
161.2
168.7
174.0

126.0
127.0
129.0
130.8
134.1
137.2

119.0
120.2
121.3
122.9
124.5
126.1

138.7
142.1
144.2
146.7
150.7
152.3

118.6
118.9
119.1
119.4
121.4
122.8

123.5
124.6
125.8
128.2
133.2
134.3

i Dec. 1968=100.




A 56

N ATIO N AL PR OD UCT AND INCOM E □ JU L Y 1974
G R O S S NATIONAL PR O D U C T
(In billions of dollars)

Item

1929

1933

1941

1950

1969

1970

1971

1972

1973

1973
I

103.1
101.4

IV

I

55.6 124.5 284.8 930.3 977.1 1,055.5 1,155.2 1,289.1 1,242.5 1,272.0 1,304.51,337.5 1,352.2

Services..........................................................
Gross private domestic investment...................

16.2

1.4

17.9

14.5
10.6

3 .0
2 .4
.9

13.4
9 .5

5.0
5.6
1.5
.6
4.0
3.8
.5
1.7 - 1 .6
1.8 - 1 .4

2.9
6.6
3.9
3.7
4.5
4.0

Net exports of goods and services...................
Exports..........................................................

1.1
7.0
5.9

.4
2.4
2.0

1.3
5.9
4.6

Government purchases of goods and services..
Federal..........................................................
National defense......................................
Other.........................................................
State and local..............................................

8.5

8.0

24.8

Structures................... . ........................

III

57.2 120.1 278.0 922.5 972.6 1,049.4 1,149.1 1,281.1 1,237.8 1,267.5 1,299.81,319.4 1,34 6 .7

77.2
9.2
37.7
30.3

Residential structures...............................
Nonfarm................................................
Change in business inventories...................

II

1974

45.8
3.5
22.3
20.1

1.3

2 .0

7.2

6.0

80.6 191.0 579.5 617.6
9.6 30.5 90.8 91.3
42.9 98.1 245.9 263.8
28.1 62.4 242.7 262.6

16.9

13.8
3.1
7.9

667.2
103.6
278.7
284.9

726.5
117.4
299.9
309.2

804.0
130.8
335.9
337.3

779.4
132.2
322.2
325.0

795.6
132.8
330.3
332.6

816.0
132.8i
341.6
341.6j

54.1 139.0 136.3 153.2 178.3 202.1 194.5 198.2

202.0 213.9

47.3 131.1 131.7 147.1 172.3 194.2 189.9 193.7
27.9 98.5 100.6 104.4 118.2 136.2 130.9 134.1

9.2
18.7
19.4
18.6
6.8
6.0

34.2
64.3
32.6
32.0
7.8
7.7

36.1
64.4
31.2
30.7
4.5
4.3

37.9
66.5
42.7
42.2
6.1
4.5

48.4
87.8
58.0
57.4
8.0
7.3

45.3
85.5
59.0
58.4
4.6
4.4

47.2
86.9
59.6
59.1
4.5
4.4

1.8
13.8
12.0

1.9
55.5
53.6

3.6
62.9
59.3

.8 - 4 .6
5.8
66.3 73.5 102.0
65.5 78.1 96.2

.0
89.7
89.7

2.8
97.2
94.4

41.7
76.5
54.0
53.5
6.0
5.6

197.3 195.9
138.0, 141.8

49.5
88.6
59.2
58.6
4.7
3.2

37.9 210.0 219.5 234.3 255.0 277.1 268.6 275.3
18.4

98.8

9 6.2

98.1 104.4 106.6 105.5 107.3

51.7
90.1
54.0
53.4
18.0
17.3

Gross national product in constant (1958)
dollars............................................................ 203.6 141.5 263.7 355.3 725.6 722.5 745.4 790.7 837.4 829.3 834.3

844.6
125.0
362.3
357.3
198.9
193.4
144.1

53.9
90.2
49.3
48.6
5.5
5.0

7.6 12.8
104.5 116.4
97.0 103.6

10.9
130.4
119.4

279.0 285.6

297.8

74.2 73.0
32.7 33.8
172.2 178.8

76.3
35 8
185.7

106.8 106.8

14.1 78.4 74.6 71.6 74.4 73.9 74.3 74.2
4.3 20.4 21.6 26.5 30.1 32.7 31.2 33.1
19.5 111.2 123.3 136.2 150.5 170.5 163.0 168.0

N o t e . —Dept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation o f series,

825.2
125.6
349.6
350.0

841.3 844.6

112.1

831.0

see the Survey o f Current Business, (generally the July issue) and the Aug.
1966 Supplement to the Survey.

NATIONAL INCOM E
(In billions of dollars)

Item

1929

1941

1950

1969

1970

1971

1972

1973

1973
I

86.8
Wages and salaries .......................................

1933

II

1974

III

IV

I

40.3 104.2 241.1 766.0 800.5 859.4 941.8 1,053.9 1,015.0 1,038.2 1,067.4 1,095.1 1,108.8

51.1

29.5

64.8 154.6 566.0 603.9 644.1 707.1 785.2 757.4 774.9 794.0 814.7 826.8

50.4

29.0

62.1

23.9
.3
4.9

146.8 509.7 542.0 573.8 627.3 691.4 666.7 682.3 699.3 717.2 726.2

51.9 124.4 405.6 426.9 449.7 493.3 546.0 525.1 538.7 553.2 566.9 573.3
5.0 19.0 19.6 19.4 20.3 20.8 20.9 20.5 20.4 21.3 21.2
1.9
8.3 17.4 85.1 95.5 104.7 113.8 124.6 120.7 123.1 125.7 129.1 131.7

Government civilian.................................

45.5
.3
4.6

Supplements to wages and salaries ...............

.7

.5

2 .7

7.8

56.3

61.9

70.3

79.7

93.9

90.8

92.6

94.7

97.5 100.6

.1
.6

.1
.4

2.0
.7

4.0
3.8

27.8
28.4

29.7
32.2

33.7
36.6

39.0
40.7

49.0
44.9

47.4
43.3

48.3
44.2

49.4

45.3

50.8
46.7

52.7
47.9

15.1
9.0
6.2

5.9
3.3
2.6

17.5
11.1
6.4

37.5
24.0
13.5

67.2
50.5
16.7

66.9
50.0
16.9

68.7
51.9
16.8

74.2
54.0
20.2

84.2
57.5
26.8

80.6
56.3
24.3

81.5
57.1
24.4

85.0
57.9
27.1

89.8
58.5
31.3

88.4
59.3
29.1

5.4

2.0

3.5

9.4

22.6

23.9

24.5

24.1

25.1

24.7

24.6

25.3

25.7

25.8

10.5

- 1 .2

15.2

37.7

79.8

69.2

80.1

91.1 109.0 104.3 107.9 112.0 111.9 112.9

10.0

1.0

17.7

42.6

84.9

74.0

7.6

17.8

34.8

37.4

98.0 126.3 119.6 128.9 129.0

.5

40.1

85.1

55.8

52.7

57.4

57.6

24.9

44.8

55.4

70.4

71.5

2.0
- 1 .6

8.8
16.0

24.3
20.5

25.1
22.5

26.0
29.3

66.9
26.9
40.0

71.6

24.7
14.6

47.6

5.8
2.8

10.1

39.3

42.7

.4

Inventory valuation adjustment..................

.5

- 2 .1

- 2 .5

- 5 .0

- 5 .1

- 4 .8

- 4 .9

Net interest.......................................................

4.7

4.1

3.2

2.0

30.5

36.5

42.0

Employer contributions for social in-

Proprietors’ income..........................................
Farm ..............................................................

Corporate profits and inventory valuation
adjustment.....................................................
Profits tax liability....................................
Profits after tax .........................................
Dividends..............................................
Undistributed profits............................

1.4

8.6

4.4
5.7

N ote.— D ept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N ote to table above.




27.8
42.6

27.3
44.2

28.1
43.4

127.4 144.0

55.7
71.6

29.0
42.6

60.6

83.4

29.5
53.9

- 6 .9 -1 7 .3 -1 5 .4 -2 1 .1 - 1 7 .0 -1 5 .5 —31.2
45.2

50.4

47.9

49.4

51.1

53.0

55.0

JULY 1974 o NATIONAL PRODUCT AND INCOME

A 57

RELA TIO N O F G R O S S NATIONAL P R O D U C T , NATIO N A L IN CO M E, A N D PE R S O N A L IN CO M E A N D SAVING
(In billions of dollars)
1929

1933

1941

1950

1969

1970

1971

1972

1973

1973
I

103.1
Less: Capital consumption allowances.........

Indirect business tax and nontax lia­
bility ...................................................
Business transfer payments..................
Statistical discrepancy...........................

Plus: Subsidies less current surplus of gov­

ernment enterprises...........................

7.0

8.2

7.0
.6
.7

7.1
.7
.6

11.3
.5
.4

Plus: Government transfer payments...........

Net interest paid by government and
consumers..........................................
Dividends...............................................

- .1

.1

10.5 - 1 .2
.2
.3

18.3

81.6

93.8 102.4 110.0

106.9 109.0 110.5

113.5

115.2

115.6 117.2 118.5
4.8
4.9
5.0
3.2
3.7
1.1

119.9
5.1
3.7

121.1
5.2
- 1 .0

- .2

- 2 .9

.2

87.3

1.0

1.7

15.2
2.8

37.7
6.9

79.8
54.2

69.2
57.7

1.2

1.7

.4

80.1
64.6

91.1 109.0
73.7 92.1
-. 1

.0

.6

.9

1.5

2.6

14.3

61.9

75.1

88.9

98.3 112.6

2.5
5.8
.6

1.6
2.0
.7

2.2
4.4
.5

7.2
8.8
.8

28.7
24.3
3.8

31.0
24.7
4.0

31.0
25.1
4.3

32.7
26.0
4.6

—.5

37.1
27.8
4.9

96.0 227.6 750.9 808.3 863.5 939.2 1,035.4

Equals: Personal income.................................

85.9

47.0

2.6

1.5

Equals: Disposable personal income................

83.3

Less: Personal outlays...................................

79.1
77.2
1.5
.3

.2

.2

Equals: Personal saving...................................

4.2

- .9

11.0

Disposable personal income in constant (1958)
dollars............................................................

I

.9

.4

.6

40.3 104.2 241.1 766.0 800.5 859.4 941.8 1,053.9 1,015.0 1,038.2 1,067.4 1,095.1 1,108.8

Less: Personal tax and nontax payments. . . .

Personal consumption expenditures.
Consumer interest payments............
Personal transfer payments to for-

IV

23.3 85.9 93.5 102.4 109.5 117.8
.8
3.8
4.0
4.3
4.6
4.9
1.5 - 6 .1 - 6 .4 - 3 .4 - 1 .5
2.9

Less: Corporate profits and inventory valu­

ation adjustment...............................
Contributions for social insurance---Excess of wage accruals over disburse­
ments..................................................

III

55.6 124.5 284.8 930.3 977.1 1,055.5 1,155.2 1,289.1 1,242.5 1,272.0 1,304.5 1,337.5 1,352.2

7.9

86.8

II

1974

104.3 107.9 112.0
89.3 90.9 93.0
.0

112.9
99.9

.0

.0

.0

108.8 110.8 113.7

116.9

122.3

39.7
29.0
5.1

41.4
29.5
5.2

34.7
26.9
4.8

—.3

111.9
95.0

36.1
27.3
4.9

38.0
28.1
5.0

996.6 1,019.0 1,047.1 1,078.9 1,094.4

20.7 116.5 116.6 117.5 142.2 152.9

145.1 149.3 156.0

161.1

163.0

45.5

92.7 206.9 634.4 691.7 746.0 797.0 882.5

851.5 869.7 891.1

917.8

931.4

46.5
45.8
.5

81.7 193.9 596.2 635.5 685.8 747.2 827.8
80.6 191.0 579.5 617.6 667.2 726.5 804.0
.9
2.4 15.8 16.8 17.7 19.7 22.5

801.5 818.7 840.1
779.4 795.6 816.0
21.2 22.0 23.0

850.8
825.2
23.8

869.8
844.6
24.4

3.3

.5

.9

1.0

1.0

1.0

1.2

.9

1.0

1.1

1.8

.9

13.1

38.2

56.2

60.2

49.7

54.8

50.0

51.0

51.1

67.1

61.5

603.9 604.8 609.5

613.2

603.4

Apr.

Mayp

150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 608.0

N o t e . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table at top of opposite
page.

P E R SO N A L IN CO M E
(In billions of dollars)

Item

1974

1973
1972

1973
May

June

July

Aug.

Sept.

Oct.

Nov

Dec.

Jan.

Feb.

Mar.

Total personal income..........................

939.2 1,035.4 1,018.7 1,026.6 1,035.6 1,047.3 1,058.5 1,068.5 1,079.4 1,089.0 1,087.0 1,094.8;1,101.4 1,110.5 1,121.1

Wage and salary disbursements..........
Commodity-producing industries..
Manufacturing only ......................
Distributive industries.....................
Service industries.............................
Government.....................................

627.8 691.5 682.0 688.2 693.2 698.9 706.0 711.2 717.8 722.6 721.8 726.5; 730.2 735.5 744.1
226.0 251.9 248.3 251.7 253.4 254.8 257.8 259.5 262.5 264.1 261.0 263.01 263.7 265.3 268.6
175.9 196.8 194.7 197.0 197.9 198.7 200.8 202.5 204.6 205.1 203.0 203.5 203.9 205.7 208.8

151.5 165.1 163.2 164.5 165.3 167.1 168.7 169.6 170.8 171.3 171.8 172.2 173.7 175.4 177.5
116.1 129.0 126.8 127.7 129.4 130.8 132.5 132.9 134.1 135.9 136.8 138.3 139.2 140.4 142.8
134.2 145.4 143.7 144.4 145.1 146.2 147.0 149.2 150.4 151.3 152.2 152.9 153.7 154.4 155.2

Other labor income.............................

40.7

44.9

44.2

44.5

44.8

45.3

45.8

46.2

46.7

47.1

47.5

47.9

48.3

48.8

49.3

Proprietors’ income.............................
Business and professional................
Farm .................................................

74.2
54.0
20.2

84.2
57.5
26.8

81.5
57.1
24.4

81.9
57.3
24.6

83.7
57.8
25.9

85.1
58.0
27.1

86.4
58.1
28.3

88.4
58.5
29.9

90.3
58.7
31.6

91.0
58.6
32.4

88.2
58.6
29.6

88.4
59.3
29.1

88.5
59.9
28.6

86.2
60.0
26.2

84.2
60.3
23.9

Rental income......................................

24.1

25.1

24.6

24.9

25.0

25.3

25.5

25.6

25.7

25.7

25.8

25.8

25.8

25.0

26.2

Dividends.............................................

26.0

27.8

27.3

27.4

27.6

28.2

28.3

28.5

28.7

29.8

29.5

29.4

29.6

29.9

30.2

78.0

87.5

85.7

86.5

87.8

89.0

90.3

91.5

92.6

94.0

95.3

96.3

97.5

98.9 100.3

Personal interest income.....................
Transfer payments...............................
Less: Personal contributions for social

insurance.......................................

103.0 117.5 115.9 116.0 116.9 119.0 120.2 121.1 121.9 123.0 125.9 127.6 128.9 133.8 134.8
34.7

43.1

42.5

42.8

43.4

43.6

43.9

44.0

44.3

44.3

47.0

47.2

47.4

47.6

48.1

Nonagricultural income........................ 911.5 1,000.5 986.4 994.2 1,001.8 1,012.1 1,021.8 1,030.0 1,039 0 1,047.5 1,048.1 1,056.4 1,063.3 1,074.6 1,087.2
Agricultural income.............................. 27.7 34.9 32.2 32.4 33.8 35.2 36.7 38.6 40.4 41.5 38.9 38.4 38.1 35.9 33.9
N ote.—D ept, o f Commerce estimates. Monthly data are seasonally
adjusted totals at annual rates. See also N ote to table at top o f opposite
page.




A 58

FLOW OF FUNDS □ JU L Y 1974
SUM M ARY OF F U N D S RAISED AND ADVANCED IN U .S . CREDIT M A RKETS
(Seasonally adjusted annual rates; in billions of dollars)
1971
Transaction category, or sector

1968

1969

1970

1971

1972

1973

HI

1972
H2

HI

1973
H2

HI

H2

Funds raised, by type and sector
91.4
88.0

1 Total funds raised by nonfinancial sectors.................
2 E x clu d in g e q u itie s .................................................

94.6
95.9

3 U.S. Government.......................................................
4
Budget agency issues..............................................
5

13.4 - 3 .6
10.3 - 1 .3
3.1 - 2 .4

6 All other nonfinancial sectors.....................................
Corporate equities..................................................
7
D e b t in s tr u m e n ts ..............................................
8

97.5 146.7 166.1 187.0 134.7 158.7 145.2 187.3 198.0 175.4
92.6 135.0 156.1 181.3 123.8 146.1 134.7 177.8 192.3 169.6
12.8
12.9
- .1

25.5
26.0
- .5

17.3
13.9
3.4

9.7 22.7
7.7 24.2
2.0 - 1 .6

28.4
27.8
.5

12.4
10.5
1.9

22.2
17.2
4.9

17.0
15.8
1.2

2.5
-.3
2.8

3
4
5
6
7
8

81.2
- 1 .4
82.6

95.0
3.4
91.6

84.7 121.2 148.8 177.3 112.0 130.4 132.8 165.1 181.0 172.9
5.7 10.9 12.6 10.4
5.8
5.7
4.9 11.7 10.0
9.5
79.8 109.5 138.8 171.6 101.1 117.8 122.3 155.6 175.3 167.1
94.7
10.1
11.6
73.0

91.7
6.5
10.6
74.6

97.7
13.6
12.7
71.4

43.5
10.8
16.1
4 .3

41.8
8 .2
16.9
4 .5
69.5
29.2

9
10
11
12
13
14
15
16
17
18
19
20
21

Debt capital instruments.......................................
State and local government securities................
Corporate and foreign b o nds...........................
Mortgages............................................................
Home mortgages..............................................
Other residential..............................................
Commercial......................................................
Farm ................................................................
Other private credit................................................
Bank loans n.e.c..................................................
Consumer credit..................................................
Open-market paper............................................
Other...................................................................

50.6
9.5
14.0
27.1

50.6
9.9
13.0
27.7

57.7
11.3
20.6
25.7

15.1
3 .4
6 .4
2 .2

83.2
16.6
19.7
46.8

92.4
11.9
13.2
67.3

32.0
13.1
10.0
1.6
7.2

15.7
4 .7
5 .3
1 .9

41.0
15.3
10.4
3.3
12.0

12.8
5 .8
5 .3
1.8

22.1
6.4
6.0
3.8
5.9

26.0
8.8
10.0
2 .0

39.7
10.3
14.8
2 .6

22
23
24
25
26
27
28
29
30

By borrowing sector................................................
D e b t in s tr u m e n ts ................................ ..........
Foreign................................................................
State and local governments..............................

81.2
82.6
2.9
9.8
29.6
40.2

95.0
91.6
2.9
10.7
32.2
45.9

84.7 121.2 148.8 177.3 112.0 130.4 132.8 165.1 181.0 172.9
79.8 109.5 138.8 171.6 101.1 117.8 122.3 155.6 175.3 167.1
3.0
5.7
3.8
7.1
5.3
6.1
3.4
4.3 11.1
3.1
11.9 12.7
6.4 14.6
11.4 17.0 12.3 10.5 17.9 16.1
22.9 38.3 63.2 74.1 30.0 46.6 56.2 70.5 73.5 74.0
42.5 48.5 59.5 79.9 47.9 49.0 50.9 68.2 84.4 75.4

31
32
33

C o rp o ra te e q u itie s ..............................................

Nonfinancial business........................................
Farm ................................................................
Nonfarm noncorporate.....................................
Corporate .........................................................

Corporate business.............................................
Totals including equities

34
Nonfinancial business........................................
35
36
Corporate........................................................
37 Memo: U.S. Govt, cash balance.........................
Totals net of changes in U.S. Govt, cash balances
38 Total funds raised......................................................
By U.S. Government............................................
39

26.3 46.4
9.3 21.8
11.2 19.2
- . 9 - 1 .6
6.6
7.0

42.6
9.5
16.5
4 .4

79.5
17.9
22.3
39.3
2 0.6
8 .5
8 .5
1 .7

76.9 21.7
41.7
5.1
22.9
8.9
2.5 - 1 .0
9.8
8.7

86.9
15.4
17.2
54.3

87.3
12.0
14.4
60.9

97.6
11.9
12.0
73.7

31.5
9 .1
11.5
2 .3

35.6
9.1
13.5
2 .7

43.7
11.5
16.0
2.5

30.9
13.5
13.6
- .8
4.6

35.0 58.0 83.6
14.5 29.3 54.2
15.8 22.5 24.7
- . 3 - 2 .8 - 3 .4
8.2
5.0
9.0

1
2

20.4
8.4
11.5

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

3 .2
7.4
35.4

3 .2
5 .3
33.9

4.1
8 .7
35.7

4 .9
10.4
44.2

8.6
11.4
59.9

4 .0
9 .3
34.6

4 .2
8.1
36.8

4 .4
9 .5
37.0

5.3
11.6
51.2

7.5
12.0
64.8

- 1 .4
.2
- 1 .5

3.4
.5
2.9

4.9
.1
4.8

11.7
*
11.7

10.0
- .4
10.4

5.7
- .2
5.9

10.9
.4
10.5

12.6
- .3
12.9

10.4
- .2
10.7

9.5
- .6
10.1

5.7
- .4
6.1

3.1
38.7
30.3
- 1 .1

3.3
48.8
38.3
.4

3.0
47.3
38.8
2.8

5.7
60.2
47.4
3.2

3.4
69.9
54.6
.5

6.9
85.8
65.8
- 1 .7

5.7
58.4
45.1
- .2

5.8
61.9
49.7
6.6

3.2
61.6
47.7
- 3 .0

3.7
78.3
61.3
4.0

10.7
3.1
90.5 81.2
70.9 60.6
3.6 - 7 . 0

34
35
36
37

94.7 143.5 165.6 188.7 134.9 152.1 148.1 183.3 194.3 182.3
10.0 22.3 16.8 11.4 22.9 21.7 15.4 18.1 13.3
9.4

38
39

2 .8
5 .6
31.8

95.7 91.0
14.5 - 4 . 0

9 .8
10.8
54.9

5.8 31
* 32
5.7 33

Private domestic net investment and borrowing in credit markets
Total, households and business
1
T o ta l c a p ita l o u tla y s i. ..
2
Capital consumption 2 ........
3
Net physical investment. . . .

207.6 226.7 224.2 252.5 291.1 328.3 246.3 258.7 279.9 302.3 323.8 332.9
140.4 154.3 166.0 179.0 193.4 209.9 175.8 182.2 190.3 196.6 205.6 214.3
67.2 72.4 58.2 73.5 97.7 118.4 70.5 76.6 89.7 105.7 118.2 118.6

1
2
3

4
5

68.3
- 1 .1

81.0 70.2 98.5 133.1 159.9 88.4 108.5 117.7 148.8 163.9 155.2
- 8 .6 - 1 2 .0 -2 5 .0 - 3 5 .4 -4 1 .5 -1 7 .9 -3 2 .0 -2 8 .0 -4 3 .1 - 4 5 .7 -3 6 .6

4
5

T o ta l c a p ita l o u tla y s .

97.9 108.9 108.0 116.6 133.3 151.3 115.8 117.3 127.4 139.3 145.6 157.0
63.2 69.5 74.6 80.3 87.6 94.5 78.8 81.7 86.2 88.9 92.7 96.3
34.7 39.4 33.5 36.3 45.8 56.8 37.0 35.5 41.2 50.4 52.9 60.7

6
7
8

Net debt funds raised. . .
Corporate equity issues..
Excess net investment 3..
Corporate business

40.2 45.9 42.5 48.5 59.5 79.9 47.9 49.0 50.9 68.2 84.4 75.4
5.7
6.1
5.9 10.5 12.9 10.7 10.1
- 1 .5
4.8 11.7 10.4
2.9
- 4 . 0 - 9 . 4 -1 3 .8 -2 3 .9 -2 4 .1 - 2 9 .0 -2 1 .4 - 2 6 .4 -2 0 .4 -2 7 .9 -3 7 .5 - 2 0 .5

9
10
11

96.0 105.4 109.8 120.0
63.8 66.5 69.4
61.
34.1 41.5 43.3 50.6

12
13
14

31.8 35.4 33.9 35.7 44.2 59.9 34.6 36.8 37.0 51.2 64.8 54.9
5.7
6.1
5.9 10.5 12.9 10.7 10.1
4.8 11.7 10.4
- 1 .5
2.9
- . 4 - 4 . 4 - 8 .4 -1 8 .3 - 1 6 .8 -1 8 .9 -1 5 .3 - 2 1 .4 -1 3 .5 -1 9 .8 - 2 7 .6 - 1 0 .0

15
16
17

109.7 117.8 116.2 135.9 157.8 177.1 130.4 141.4 152.6 163.0 178.2 175.9
77.2 84.8 91.4 98.7 105.9 115.4 97.0 100.4 104.1 107.7 112.9 118.0
32.5 33.0 24.7 37.2 51.9 61.6 33.5 41.0 48.5 55.3 65.3 58.0

18
19
20

73.5 74.0
- 8 .2 -1 6 .1

21
22

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Net funds raised.............
Excess net investment 3..
Total business
Capital consumption___
Net physical investment.

T o ta l c a p ita l o u tla y s .

Capital consumption___
Net physical investment.
Net debt funds raised. . .
Corporate equity issues..
Excess net investment 3..
Households

T o ta l c a p ita l o u tl a y s .

Capital consumption.. . .
Net physical investment.
Net funds raised.............
Excess net investment 3.

75.0
45.1
29.9

29.6
2.9

83.7
49.8
33.9

32.2
.8

1 Capital outlays are totals for residential and nonresidential fixed
capital, net change in inventories, and consumer durables, except outlays
by financial business.
2 Capital consumption includes amounts for consumer durables and
excludes financial business capital consumption.
3 Excess of net investment over net funds raised.
N o t e . — Full statements for sectors and transaction types are available
on a quarterly basis and annually for flows and for amounts outstanding.
Requests for these statements should be addressed to the Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C., 20551.




84.0
53.6
30.4

86.7 100.7 114.8
57.7 62.8 67.9
29.1 37.8 46.

22.9 38.3 63.2 74.1
1.8 - 1 .1 -1 1 .3 -1 2 .5

86.5
56.7
29.8

87.0
58.7
28.3

30.0 46.6
3.5 - 5 .6

56.2 70.5
- 7 .6 -1 5 .2

Funds raised by type and sector. Credit flows included here are the
net amounts raised by households, nonfinancial business, governments,
and foreigners. All funds raised by financial sectors are excluded. U.S.
Government budget issues (line 5) are loan participation certificates
issued by CCC, Export-Import Bank, FNMA, and GNMA, together with
security issues by FHA, Export-Import Bank, and TVA. Issues by Federally
sponsored credit agencies are excluded as borrowing by financial institu­
tions. Such issues are on p. A-59, line 11. Corporate equity issues are net
cash issues by nonfinancial and foreign corporations. Mortgages exclude
loans in process. Open market paper is commercial paper issued by
nonfinancial corporations plus bankers’ acceptances.

JU L Y 1974 □ FLOW OF FUNDS

A 59

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1971
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors.............................................
By public agencies and foreign
2 Total net advances......................................................
3
U.S. Government securities...................................
4
Residential mortgages............................................
5
FHLB advances to S&L’s .....................................
6
Other loans and securities.....................................
By agency—
7
U.S. Government....................................................
8
Sponsored credit agencies......................................
9
Monetary authorities..............................................
10
Foreign....................................................................
11 Agency borrowing not included in line 1.................
Private domestic funds advanced
12 Total net advances......................................................
13
U.S. Government securities...................................
14
State and local obligations.....................................
15
Corporate and foreign bonds................................
16
17
18
Less: FHLB advances............................................
19
20
21
22
23

P r iv a te fin a n c ia l in te r m e d ia tio n
Credit market funds advanced by private financial
institutions............................................................

1968

1969

1970

1971

1972

1973

HI

1972
H2

HI

1973

H2

HI

H2

95.9

88.0

92.6 135.0 156.1 181.3 123.8 146.1 134.7 177.8 192.3 169.6

1

12.2
2.8
.9
5.1

15.8
.9
4.6
4.0
6.3

28.0 41.3
15.7 33.4
5.7
5.7
1.3 - 2 .7
5.2
4.9

16.9
7.3
5.2
*
4.3

34.8 38.6
11.0 32.9
7.7
4.2
7.2 - 5 .5
7.1
9.0

44.0 19.7
34.0 12.7
7.1
6.2
.2 - 2 .4
2.7
3.2

26.7
.7
10.5
6.6
8.9

2
3
4
5
6

4.9
3.2
3.7
.3
3.5

2.9
9.0
4.2
- .3
8.8

2.8
9.9
5.0
10.3
8.2

3.2
2.8
8.8
26.4
4.3

2.3
6.0
.2
8.4
6.2

3.0
4.3
20.3 - 1 . 4
9.2
8.4
2.3 27.3
19.6
.9

2.2
7.0
9.3
25.5
7.7

1.0
5.1
18.7 21.8
11.8
6.7
11.5 - 6 .9
17.6 21.6

7
8
9
10
11

87.2
13.3
9.5
13.8
15.5
35.9
.9

80.9
4.6
9.9
12.5
15.7
42.2
4.0

72.8 98.0 145.4 166.1 86.1 109.9 122.4 168.6 167.0 164.5
5.4 - 3 .5
16.3 18.4 - 9 .2
2.1
7.1 25.3 13.5 23.4
11.3 16.6 11.9 10.1 17.9 15.4 12.0 11.9
6.5 13.6
20.0 19.5 13.2 11.6 22.1
16.8 14.2 12.1 10.3 12.9
12.8 29.1 44.6 44.3 24.8 33.4 38.4 50.8 49.2 39.4
24.6 33.7 59.5 88.9 25.0 42.3 48.3 71.0 95.2 81.8
*
1.3 - 2 .7
7.2 - 5 .5
.2 - 2 .4
7.8
2.5
6.6

12
13
14
15
16
17
18

75.3

5 4 .9

74.9 111.4 150.2 161.4 112.2 110.6 130.5 170.1 184.8 138.0

19
20
21
22
23

75.3

54.9
2 .6

74.9 111.4 150.2 161.4 112.2 110.6 130.5 170.1

3.4

Commercial banking..............................................
Savings institutions................................................
Insurance and pension funds.................................
Other finance..........................................................

38.7
15.6
14.0
7.0

24 Sources o f funds ..........................................................
25
Private domestic deposits......................................
26
Credit market borrowing.......................................

45.9
8.5

27
28
29
30
31

18.2
14.5
12.3
9.9

35.1
16.9
17.3
5.7

50.6
41.5
14.1
5.3

69.7
48.7
16.0
15.8

89.6
35.2
21.4
15.2

53.2
45.4
12.5
1.2

48.0
37.5
15.7
9.4

14.1 42.9
2.0• 21.2
4.9
4.3
7.8
2.5
9.1
5.4

3.1
1.5
7.5
4.5
4.5 - 4 .1
6.2 10.6
7.4
5.0

57.2
48.4
14.1
10.6

82.4 101.3
48.9 49.8
17.8 19.6
21.0 14.1

77.8
20.6
23.2
16.4

63.2
- .4

90.8
9.2

97.8
20.2

87.9 107.7
30.3
2.6

73.9
15.9

97.9
16.4

97.9 103.1
24.0 34.4

72.7
26.2

24
25
26

21.0
2.6
- .2
11.4
7.2

33.3 12.1
9.3 - 8 .5
*
2.9
10.4 13.1
4.5
13.5

11.3
-3 .2
2.2
9.6
2.7

32.2
5.1
.7
11.3
15.1

43.2
1.9
6.3 - 7 . 2
- 1 .0
- .8
15.7
7.7
22.2
2.2

20.8
.8
5.3
11.5
3.2

16.2
5.5
- 3 .6
8.4
5.9

48.2 47.3
5.3
4.7
5.1 - 1 .4
14.1 13.8
24.3 29.6

39.1
7.4
- .6
17.5
14.8

27
28
29
30
31

32 Direct lending in credit markets...............................
33
U.S. Government securities...................................
34
State and local obligations.....................................
35
Corporate and foreign bonds................................
36
Commercial paper..................................................
37
Other.......................................................................

20.3
8.0
- .2
4.7
5.8
2.1

45.0
16.8
8.7
7.4
10.2
2.0

- 2 .4 - 4 .2
- 8 .3 - 1 3 .0
- 1 .1
- .1
10.1
8.2
- .6
- 4 .4
1.3
1.4

15.4
4.1
2.1
4.9
3.7
.6

-2 3 .5
- 2 2 .4
-2 .7
8.6
- 7 .3
.3

15.2
- 3 .5
2.6
7.7
6.0
2.3

8.3
- 3 .3
.9
4.5
6.7
- .4

22.5
11.5
3.4
5.2
.8
1.7

16.6
13.4
.6
1.3
-.1
1.4

52.7
25.3
2. 1
.4
20.1
4.8

32
33
34
35
36
37

38 Deposits and currency...............................................
Time and savings accounts....................................
39
40
Large negotiable CD’s ......................................
41
Other at commercial banks...............................
42
At savings institutions........................................

48.3
5.4
33.9 - 2 .3
3.5 - 1 3 .7
3.4
17.5
8.0
12.9

66.6
56.1
15.0
24.2
16.9

94.2 102.2
81.2 85.7
7.7
8.7
32.9 31.0
40.6 46.0

91.8 110.6
79.9 92.6
3.4
18.6
32.9 44.0
28.4 45.3

77.9 103.3 101.3 109.2
69.8 88.8 82.6 98.8
12.0
2.1
15.3 34.2
21.9 38.9 23.2 26.8
35.9 47.8 44.1 37.8

74.5
60.9
3.0
39.0
18.9

38
39
40
41
42

43
44
45

Money.....................................................................
Demand deposits................................................
Currency..............................................................

14.5
12.1
2.4

7.7
4.8
2.8

10.5
7.1
3.5

13.0
9.6
3.4

12.0
8.0
3.9

17.9
15.1
2.8

46 Total of credit market instr., deposits, and currency.

68.7

50.5

64.2

90.0 117.7 126.9

87.1

47
48
49

12.7
86.4
2.9

18.0 30.2 30.6 10.8
67.9 102.8 113.7 103.3
9.1
..8 23.2 13.5

Other sources..........................................................
Foreign funds......................................................
Treasury balances...............................................
Insurance and pension reserves.........................
Other, n et............................................................
P riv a te d o m e s tic n o n fin a n cia l in v e sto rs

Public support rate (in per cent)...........................
Private financial intermediation (in per cent)........
Total foreign funds................................................

19.1

16.5
12.1
4.4

35.1
19.4
1.4
.8
10.0
3.5

8.1
4.1
3.9

14.5
9.1
5.5

18.7
15.3
3.4

184.8 138.0

10.3
4.3
6.0

13.6 43
11.8 44
1.8 45

93.0 111.7 123.8 125.7 127.2

19.2 31.2 30.1 14.6
7.9 22.3
97.2 130.3 100.7 106.6 100.9 110.7
8.6 20.1 26.3 11.6 15.3 16.8

46

15.7 47
83.9 48
.5 49

Corporate equities not included above
1 Total net issues............................................................
2
Mutual fund shares................................................
Other equities.........................................................
3
4 Acquisitions by financial institutions.......................
5 Other net purchases....................................................

5.7 13.0
5.1
9.5 14.7 12.0
9.5
1.2 - . 6 - 1 .6
2.6
.3
5.8
4.8
7.3 12.7
- .7
4.7
6.9 13.5 12.6
10.8 12.2 11.4 19.2 15.6 13.3 23.4
- 5 .8 - 2 .7 - 1 .9 - 4 .6 - 3 .6 - 7 .6 -1 0 .4

N o te s
L in e

1.
2.
6.
11.
12.
17.
25.
26.
28.

Line 2 of p. A-62.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by Federally sponsored credit agencies.
Included below in lines 13 and 33. Includes all GNMA-guaranteed
security issues backed by mortgage pools.
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 + 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 af­
filiates.




5.4
16.3 12.4 11.5
2.1
- .8
- . 4 - 2 .0
14.2 13.3 12.0
7.4
15.0 17.6 13.6 12.5
1.3 - 5 .1 - 2 .1 - 7 .0

6.0
- 1 .1
7. 1
14.1
- 8 .1

1
2
3
4
5

29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
39+44. See line 25.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Line 1 and 3. Includes issues by financial institutions.

A 60

U.S. BALANCE OF PAYMENTS □ JULY 1974
1.

U.S. BALANCE OF PAYMENTS SUMMARY

(In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics .)

Credits (+ ), debits ( —)

Line

1971 r

1972 r

1973 »•

1973 r
I

3
4
5

Military transactions, net.........
Travel and transportation, net.

-2,9 0 8
-2,341

6
7
8

Investment income, net 2......................................
U.S. direct investments abroad 2 .................
Other U.S. investments abroad.....................
Foreign investments in the United States 2 .

5,021
4,526
5,291
6,925
6,385
9.415
3,444
3,494
4,569
-4 ,8 0 9 -5,8 9 3 -8 ,6 9 3

9

Other services, net 2 .......

10

Balance on goods and services -

11
12

Remittances, pensions, and other transfers.
Balance on goods, services, and remittances

13

-3 ,6 0 4
-3 ,0 5 5

2,781

3,110

-170

-6 ,0 0 9

-1 ,6 0 4

-1 ,6 2 4

-1 ,7 7 4

-7 ,6 3 4

14

U.S. Government grants (excluding military).

-2 ,0 4 3

-2,173

15

Balance on current account......................................

-3 ,8 1 7

-9,807

U.S. Government capital flows excluding nonscheduled
repayments, net 5....................................................................
Nonscheduled repayments of U.S. Government assets...........
U.S. Government nonliquid liabilities to other than foreign
official reserve agencies...........................................................
Long-term private capital flows, n et.........................................
U.S. direct investments abroad..........................................
Foreign direct investments in the United States...............
Foreign securities................................................................
U.S. securities other than Treasury issues.........................
Other, reported by U.S. banks..........................................
Other, reported by U.S. nonbanking concerns.................

16
17
18
19

20
21
22
23
24
25

Balance on current account and long-term capital 5.

26

Nonliquid short-term private capital flows, net............
Claims reported by U.S. banks...............................
Claims reported by U.S. nonbanking concerns. ..
Liabilities reported by U.S. nonbanking concerns.
Allocations of Special Drawing Rights (SDR’s)..........
Errors and omissions, n et...............................................
N e t liq u id ity b a la n c e .

Liquid private capital flows, net...................................
Liquid claims..........................................................
Reported by U.S. banks................................
Reported by U.S. nonbanking concerns
Liquid liabilities......................................................
To foreign commercial banks.......................
To international and regional organizations.
To other foreigners........................................
Official reserve transactions balance, financed by changes in :.
43
44
45
46
47
48
49
50
51
52
53

54
55

Liquid liabilities to foreign official agencies...........................
Other readily marketable liabilities to foreign official agen­
cies 6.......................................................................................
Nonliquid liabilities to foreign official reserve agencies re­
ported by U.S. Govt.............................................................
U.S. official reserve assets, n e t................................................
G old...................................................................................
SDR’s .................................................................................
Convertible currencies......................................................
Gold tranche position in IM F .........................................
Memoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14)...................................................................
Reinvested earnings of foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20)............................
Reinvested earnings of U.S. incorporated affiliates of foreign
firms (excluded from lines 9 and 21)...................................
Balances excluding allocations of SDR’s
Net liquidity....................................
Official reserve transactions.

For notes see the following page.




III

Ip

IV

-2 ,7 2 2 -6 ,9 8 6
-9 6 2
623
-3 6 0
602
1,343
101
42,754 48,768 70,252 15,228 16,670 18,143 20,211 22,299
-45,476 -55,754 -69,629 -16,190 -17,030 -17,541 -18,868 -22,198

Merchandise trade balance 1.
Exports...........................
Imports...........................

1
2

II

1974

-833
-6 8 6

-2,201
-2 ,7 1 0

3,540
4,543 J
\
-1,9 4 3
2,600 J
\
-1 ,9 3 3
667 /
\

-763
-781

-5 4 7
-613

-5 8
-6 3 0

-4 6 6
-529

1,447
1,208
2,194
2,210
1,000
1,098
-1 ,7 4 7 -2 ,1 0 0

1,257
2,323
1,179
-2 ,2 4 5

1,378
2,688
1,292
-2 ,6 0 2

2,901
4,446
1,495
-3 ,0 4 0

841

815

984

901

895

-1 9 3

119

1,683

2,934

2,902
4,016

487

233

-1 6 9

3,993

-4 0 4

-411

-4 1 2

-7 1 7

-3 9 6

-5 9 7

-2 9 2

1,271

2,217

2,506

-5 9 7

3,270

3,646

-4 8 5

-4 4 7

4 2,534

109

-1 8 2

-3 5 7

-6 4 5

-9 5 4

-937

786

1,770

4 -2 8

-2 6 6

-8 6 7

-1 ,0 4 5

2,845

1,094

-699
111

-565
174

-608 -1 ,0 6 6
*
4

4 1,296
*

-478
238
1,111
217
-4,381
-9 8
319
127
-4 ,9 4 3 -3 ,5 1 7 -4 ,8 7 2 -1 ,8 1 5
383
-115
2,537
351
-6 5 4
-9 6 6
-807
51
2,289
4,507
1,718
4,051
-862 -1,158
-581
-1 1 0
216
341
124
-2 0 0

485
-315
-973
588
-1 2 4
489
-239
-5 6

204
206
1,529 -1 ,4 0 6
-710 -1 ,3 7 4
886
712
-209
-525
1,173
670
227
-459
162
-4 3 0

55
742
-2 2 0
1,127
-6 4 7
696
-5 2
-1 6 2

-2.111 -1 ,7 0 5 -2,938
227
137
289

-10,559 -11,235
-2 ,3 4 7 -1,541
-1 ,8 0 2 -1 ,4 5 7
-530
-305
-1 5
221
717
710
-9 ,7 7 6 -1 ,7 9 0
-21,965 -13,856

-7 4 4 /- 1 ,0 0 6

-1 ,1 5 8

1,917

-4 9 8

2,065

\- l,0 5 1

-1 ,1 7 9

250

1,237

2,456

-4 ,2 7 6 -1 ,6 6 3 -1 ,4 5 7
-3 ,9 4 0 -1 ,6 4 4 -1 ,3 9 9
-5 7
-5 9
-1 ,2 4 0
904
38
1
-2 ,7 7 6

-4 ,0 8 5

904

-387

792

290

-7 ,7 9 6 / —6,754

-1 ,7 1 1

-1 ,6 2 7

-9 5 9

-8 6 9

\-6 ,l9 0

- 2 ,0 3 8

611

-3,441
-1 ,8 5 3
-1,171
-6 8 2
-1 ,5 8 8
-1 ,6 7 3
11
74

1,997
923
996
-7 3
1,074
723
31
320

316
-521
-4 5 6
-6 5
837
699
-5 0
188

1,913
3,630
-493 -2 ,6 6 0
-472 -2 ,2 4 8
-4 1 2
-2 1
4,573
4,113
4,589
3,229
-593
384
577
500

-5 ,3 0 4 f - 10,195
\ - 9 ,9 9 4

286

1,943

-7 ,7 8 8
3,502
2,492
-1 ,0 9 7 -1 ,2 4 7 -1 ,9 4 4
-742 -1 ,1 0 3
-566
-531
-505
-841
-6,691
4,749
4,436
-6 ,9 0 8
3,716
2,978
682
104
376
929
-465
1,082
-29,753 -10,354

97 -1 ,2 5 3 -3 ,2 2 4
222 -1 ,1 1 9 -2 ,7 9 1
-6 6 4
-4 6 0
-7 5 6
323
335
530

769

-1 7 9

-4 8

2,661

1,044

939

2,982

1,488

27,615

9,734

4,452

8,816

-729

-1 ,4 8 9

-2 ,1 4 5

-5 5 5

-551

399

1,118

1,202

259

11

-3 5 4

-2 7 7

341
2,348
866
-249
381
1,350i

189
32
547
-703
35
153

-475
209

-4 3
220

167
17

-4 5 2
-1 3

-1 4 7
-1 5

-2
-2 1 0

9
233
-3 3

233
-1 3

8

-1 3

-1 5

-1
-209

3,204t

4.189

2,772:

693

833

758

487

391

3,157r

4,521

498!

548

9

-2 2,681 > —14,56C> - 7,796> -6,19C ) - 2,038 !
. —30,47t) - 11 ,06<f - 5 , 3 0 a( -9 ,9 9 4 f

769>

611

-1 7 9 »

939*

2,982

-4 8
1,488

JULY 1974 o FOREIGN TRADE; U.S. RESERVE ASSETS

A 61

2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions of dollars)
Imports 2

Exports 1

Trade balance

1971

1972

1973

1974

1971

1972

1973

1974

3,601
3,695
3,790
631
746
672
573
667
487
2,669
3,196
3,881

4.074
3,824
3,869
3,820
3,882
3,971
4.074
4,197
4,176
4,316
4,473
4,558

4,955
5,071
5,309
5,492
5,557
5,726
5,860
6,044
6,414
6,584
6,871
6,954

7,111
7,606
7,674
8,234
7,630

3,599
3,564
3,628
3,774
3,908
4,037
3,832
3,913
4,179
3,469
3,456
4,169

4,436
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002

5,244
5,482
5,411
5,356
5,700
5,765
5,821
5,991
5,621
5,969
6,628
6,084

6,467
7,392
7,845
8,141
8,407

2
130
160
-143
-161
-365
-259
-247
308
-800
-260
-288

-361
-6 4 9
-6 4 7
-5 9 6
-6 0 4
-4 9 7
-491
-5 3 0
-4 3 6
-421
-675
-4 4 4

-289
-412
-102
136
-143
-4 0
39
54
792
615
243
870

644
213
-171
93
-777

I
I I
I I I ....
I V .. . .

11,086
11,049
11,727
9,746

11,767
11,673
12,447
13,347

15,334
16,775
18,318
20,408

22,390

10,792
11,719
11,924
11,094

13,403
13,370
13,903
14,888

16,137
16,821
17,434
18,680

21,704

294
-670
-197
-1,348

-1 ,6 5 7
-1 ,6 9 7
-1 ,4 5 6
-1 ,5 4 0

-803
-4 6
884
1,728

686

Year3. ..

43,549

49,208

70,799

45,563

55,555

69,121

-2,014

-6 ,3 4 7

1,678

Month:
Jan ....
Feb.. .
M ar...
A pr...
M a y ..
June..
July...
A ug...
Sept...
O ct.. .
Nov...
Dec...
Quarter:

1 Exports of domestic and foreign merchandise; excludes Dept, of
Defense shipments of grant-aid military equipment and supplies under
Mutual Security Program.
2 General imports including imports for immediate consumption plus
entries into bonded warehouses.

1971

1972

1973

1974

3 Sum of unadjusted figures.
N o t e . —Bureau

cause of rounding.

of the Census data. Details may not add to totals be­

3 . U .S . RESERVE A SSET S
(In millions of dollars)

Total2

Treasury

Con­
vertible
foreign
curren­
cies

19,359
18,753
17,220
16,843
16,672

17,804
16,947
16,057
15,596
15,471

17,767
16,889
15,978
15,513
15,388

116
99
212
432

1,555
1,690
1,064
1,035
769

15,450
14,882
14,830
15,710
716,964

6 13,806
13,235
12,065
10,892
11,859

613,733
13,159
11,982
10.367
10.367

781
1,321
2,345
3,528
72,781

6 863
326
420
1,290
2,324

1970...
14,487
1971. . . 812,167
19729. , 13,151

11,072
10,206
10,487

1 4 ,3 7 8

1 1 ,6 5 2

10,732
10,132
10,410

629
8 276
241
8

1,935
585
465
552

End of
year

Total

1960...
1961...
1962. .,
1963...
1964...
1965...
1966...
1967...
1968...
1969...

197310

1 1 ,5 6 7

Reserve
position
in
IM F 3

Gold stock i
SDR’s4

851
1,100
1,958
2,166

1 Includes (a) gold sold to the United States by the IM F with the right
of repurchase, and (b) gold deposited by the IMF to mitigate the impact
on the U.S. gold stock of foreign purchases for the purpose of making
gold subscriptions to the IMF under quota increases. For corresponding
liabilities, see Table 5.
2 Includes gold in Exchange Stabilization Fund.
3 The United States has the right to purchase foreign currencies equiva­
lent to its reserve position in the IMF automatically if needed. Under ap­
propriate conditions the United States could purchase additional amounts
equal to the U.S. quota.
4 Includes allocations by the IMF of Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SDR’s.
5 For holdings of F.R. Banks only, see p. A-12.
6 Reserve position includes, and gold stock excludes, $259 million gold
subscription to the IMF in June 1965 for a U.S. quota increase which
became effective on Feb. 23, 1966. In figures published by the IMF from
June 1965 through Jan. 1966, this gold subscription was included in the
U.S. gold stock and excluded from the reserve position.
NOTES TO TABLE 1 ON OPPOSITE PAGE:
1 Adjusted to balance of payments basis; excludes transfers under
military grants, exports under U.S. military agency sales contracts, and
imports of U.S. military agencies.
2 Fees and royalities from U.S. direct investments abroad or from
foreign direct investments in the United States are excluded from invest­
ment income and included in “Other services” .
3 Equal to net exports of goods and services in national income and
product accounts of the United States.
4 Includes under U.S. Government grants $2 billion equivalent, rep-




Reserve
position
in
IM F 3

SDR’s4

Treasury

Con­
vertible
foreign
curren­
cies5

1973
12.914
10,487
10,410
June. ..
10,487
10,410
July. . . 12,918
10,410
12,923
10,487
Aug---10,410
12,927
10,487
Sept---Oct.. . . 1014,367 1011,652 1011,567
11,652
14,373
11,567
Nov__
11,652
11,567
Dec.. . 14,378

8
8
8
8
8
8
8

470
474
479
483
10541
547
552

1,949
1,949
1,949
1,949
102,166
2,166
2,166

59
68
9
9
66
94

688
757
761
824
989
1,005

2,166
2,166
2,166
2,166
2,163
2,195

End of
month

1974
Ja n .. . .
Feb... .
Mar__
A p r... .
M ay ...
June. . .

Total
Total2

14,565
14,643
14,588
14,651
14,870
14.946

11,652
11,652
11,652
11,652
11,652
11,652

11,567
11,567
11,567
11,567
11,567
11,567

7 Includes gain of $67 million resulting from revaluation of the German
mark in Oct. 1969, of which $13 million represents gain on mark holdings
at time of revaluation.
8 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect market exchange rates as of Dec. 31, 1971.
9 Total reserve assets include an increase of $1,016 million resulting
from change in par value of the U.S. dollar on May 8, 1972; of which,
total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IMF $33 million, and SDR’s $155 million.
10 Total reserve assets include an increase of $1,436 million resulting
from change in par value of the U.S. dollar on Oct. 18, 1973; of which,
total gold stock is $1,165 million (Treas. gold stock $1,157 million)
reserve position in IMF $54 million, and SDR’s $217 million.
N o t e . —See Table 20 for gold held under earmark at F.R. Banks for
foreign and international accounts. Gold under earmark is not included
in the gold stock of the United States.

resenting the refinancing of economic assistance loans to India; a cor­
responding reduction of credits is shown in line 16.
5 Includes some short-term U.S. Govt, assets.
6 Includes changes in long-term liabilities reported by banks in the
United States and in investments by foreign official agencies in debt
securities of U.S. Federally sponsored agencies and U.S. corporations.
N ote.—Data are from U.S. Department of Commerce, Bureau of Eco­
nomic Analysis. Details may not add to totals because of rounding.

A 62

U.S. GOLD TR A N S A C TIO N S □ JU L Y 1974
4 . U .S . N ET M ONETARY GOLD T R A N S A C T IO N S W ITH FO R E IG N C O U N T R IE S
AND IN TERN A TIO N A L O R G A N IZA TIO N S
(Net sales [—] or net acquisitions; in millions of dollars valued at $35 per fine ounce through Apr. 1972, at $38 from
May 1972-Sept. 1973, and at $42.22 thereafter)
1973

Area and country

1965

1964

1963

1966

1968

1967

1969

1970

1971

II
Western Europe:

-100
-8 3
-884
-2
-8 0
-3 5
-180
-5 0
150

-2
-6 0

329

-5 5
-4 0
-405
-225
-1
200
-6 0
-3 2
-8 1
618

-2
80

-3 0
-879

-5 0
-835

1

-6

-3 5

-4 9

16

-4 7

200
11

-2 9

-1 3

-8 8 -1 ,2 9 9

-6 5 9

-980

-669

969

-2 0 4

-796

200

150

50

-3 9
-3
7

-1
-1

-2 5
*

-2 5
*

-2 8
-2 3
-1

-8 2
-518

-130

Total...........................

-399

Canada .................................
Latin American republics:
Argentina .........................
Brazil..................................
Colombia...........................
Venezuela...........................
Other...................................
T otal...........................

-3 0
72

-2
-8 5

-2 5

-129

-2 5
-175

-6

11

—40

-2 9

-8 0

-5

56

17

-41

9

—65

-5 4

-131

-5

-1 0

-4
-5 6
-1 1

-21

-4 2

-1

40

-4

-3 5
-1 0
-2

11
-9

2—91

-3 0
39

-3

42

-213

-3 8

-3

-8 1

-6

20

Singapore...........................
Other ...............................

-1 3

-6

..................

12

All other.................................

-3 6

Total foreign countries..........

-392

3
-7

-1 4

-1 4

-2 2

-9 5
-3 4
9
-5 0
-8 1
-7 5

-2 4

-8 6

-4 4

-3 6 6

-1 6

-2 2

3-166

3 -6 8

*

-3 6 -1 ,3 2 2
5-225

Inti Monetary Fund4...........
-392

-3 6 -1 ,5 4 7

1 Includes purchase from D enm ark o f $25 million.

-1

-119

-1

-608 -1,031 -1 ,1 1 8

957

-631

-845

-3

-3

10

-1 5 6

-2 2

-5 4 4

967 6-787

-867

-5 4 7

177

22

-431 -1 ,0 0 9 -1,121

2 Includes purchase from Kuwait of $25 million.
3 Includes sales to Algeria of $150 million in 1967 and $50 million in
1968.
4 Includes IMF gold sales to and purchases from the United States,
U.S. payment of increases in its gold subscription to IMF, gold deposits
by the IM F (see note 1 (b) to Table 3), and withdrawal of deposits. The
first withdrawal ($17 million) was made in June 1968 and the last with­
drawal ($144 million) was made in Feb. 1972.
IMF sold to the United States a total of $800 million of gold ($200
million in 1956, and $300 million in 1959 and in 1960) with the right of

I

2
-5 0
51
-5 0

-9

-11

IV

-1 1 0
-473

32

25




-5 2
-209
-1 9

III

4
325
500
41
-7 6

-1 1

Lebanon.............................
Malaysia.............................
Philippines .. ..................

Grand total ..............

-5 8
600

25
29
-2 5
-1 3

54
10

Asia:
Iraq.....................................

Total

-2 5
-601

1974

1972

repurchase; proceeds from these sales invested by IMF in U.S. Treasury
securities. IMF repurchased $400 million in Sept. 1970 and the remaining
$400 million in Feb. 1972.
* Payment to the IMF of $259 million increase in U.S. gold subscription
less gold deposits by the IMF.
6 Includes the U.S. payment of $385 million increase in its gold sub­
scription to the IMF and gold sold by the IMF to the United States in
mitigation of U.S. sales to other countries making gold payments to the
IMF. The country data include U.S. gold sales to various countries in
connection with the IMF quota payments. Such U.S. sales to countries
and resales to the United States by the IMF totaled $548 million each.

JU L Y 1974 □ INTL. CAP ITAL TR A N S A C TIO N S OF T H E U.S.

A 63

5 . U .S . LIQ U ID AND OTH ER LIA B ILITIES TO FOREIG N OFFICIA L IN S T IT U T IO N S , AND LIQUID
LIA B ILITIES TO ALL O T H E R FO R E IG N ER S
(In millions of dollars)

Liabilities to foreign countries
Official institutions2

End
of
period

Total

Liquid
liabili­
ties to
IMF
arising
from
gold
trans­
actions i

Liquid liabilities to
other foreigners

Liquid

Total

Nonmarketable Other
Short­
Nonmar- noncon­
term
Market­ ketable vertible readily
liabili­
able
con­
market­
U.S.
vertible Treas.
ties re­
U.S.
able
U.S.
ported
Treas.
liabili­
bonds
Treas.
bonds
by
ties5
and
and
bonds
banks
notes4
and
in
notes3
notes
U.S.

Liquid
liab ilities
to com­
mercial
banks
abroad 6

Total

Liquid
liabili­
ties to
non­
mone­
Short­
tary
Market­
term
inti,
able
liabili­
and re­
ties re­
U.S.
gional
ported
Treas. organi­
by
bonds zations 8
banks
and
in
notes3-7
U.S.

24,268

800

12,914

11,963

751

200

5,346

3,013

2,565

448

2,195

1963 9...........

(26,433
126,394

800
800

14,459
14,425

12.467
12.467

1,217
1,183

703
703

63
63

5.817
5.817

3,397
3,387

3.046
3.046

351
341

1,960
1,965

1964 9...........

/29,313
\29,364

800
800

15,790
15.786

13,224
13,220

1.125
1.125

1.079
1.079

204
204

158
158

7,271
7,303

3,730
3,753

3,354
3,377

376
376

1.722
1.722

1962

29,569

834

15,826

13,066

1,105

1,201

334

7,419

4,059

3,587

472

1,431

1966 9...........

(31,145
\31,020

1,011
1,011

14,841
14,896

12,484
12,539

860
860

256
256

328
328

913
913

10,116
9,936

4.271
4.272

3.743
3.744

528
528

906
905

1967 9...........

/35,819
\35,667

1.033
1.033

18,201
18,194

14,034
14,027

908

711
711

741
741

1.807
1.807

11,209
11,085

4,685
4,678

4,127
4,120

558
558

691
677

1968 9............

/38,687
138,473

1.030
1.030

17,407
17,340

11.318
11.318

529
462

701
701

2.518
2.518

2.341
2.341

14.472
14.472

5,053
4,909

4.444
4.444

609
465

725
722

1969 9...........

o/45,755
145,914

1.019 ioi5,975
15,998
1.019

11,054
11,077

346
346

10 555 102,515
555
2,515

1.505
1.505

23,638
23,645

4,464
4,589

3,939
4,064

525
525

659
663

1970—Dec. 9.

/47,009
\46,960

566
566

23.786
23,775

19.333
19.333

306
295

429
429

3.023
3.023

695
695

17,137
17,169

4,676
4,604

4,029
4,039

647
565

844
846

1971—Dec. ii

/67,681
167,808

544
544

51,209
50,651

39,679
39,018

1.955
1.955

6,060
6,093

3,371
3,441

144
144

10,262
10,949

4,138
4,141

3,691
3,694

447
447

1,528
1,523

196 5

1972—Dec.. .

82,888

61.526

40,000

5,236

12,108

3,639

543

14,665

5,070

4,645

425

1,627

1973—May. .
Ju n e ..
Ju ly ...
Aug.. .
Sept.. .
Oct.. ,.
Dec.. .

92,088
92,189
93,218
92.580
92,073
93,175
92.581
92,608

70,920
70.701
71,028
70,520
69,777
69.702
67,400
66,810

46,117
45,713
46,138
45,721
45,174
45.212
43,791
43,919

6.934
6.934
6.934
6,906
6,914
6,929
6,207
5,701

12.245
12.245
12.245
12.319
12.319
12.319
12.319
12.319

3,628
3,805
3,705
3,555
3,355
3.233
3.234
3.210

1,996
2,004
2,006
2,019
2,015
2,009
1,849
1,661

14,059
14,356
15,310
15,077
15,026
15,953
17,255
17,643

5,360
5,463
5,362
5,451
5,651
5,699
5,916
6,152

4,976
5,080
4,988
5,116
5,304
5,325
5,506
5,722

384
383
374
335
347
374
410
430

1,749
1,669
1,518
1,532
1,619
1,821
2,010
2,003

1974—J a n ....
F eb....
M a r...
Apr.p.
M ay^.

90,114
92,022
95,718
97,520
100,895

63,891
64,097
65.527
67.163
67,959

41,576
41,989
43,412
45,184
45.976

5,229
5.192
5.192
5,020
5,013

12.321
12.322
12.329
12.330
12.330

3.210
3.210
3.210
3.210
3.210

1,555
1.384
1.384
1,419
1,430

18,014
19,677
22,022
22,067
24,276

6,285
6,455
6,751
6,996
7,112

5,836
6,045
6,351
6,576
6,704

449
410
400
420
408

1,924
1,793
1,418
1,294
1,548

N o v .. .

1 Includes (a) liability on gold deposited by the IMF to mitigate the
impact on the U.S. gold stock of foreign purchases for gold subscriptions
to the IMF under quota increases, and (b) U.S. Treasury obligations at
cost value and funds awaiting investment obtained from proceeds of sales
of gold by the IMF to the United States to acquire income-earning assets.
2 Includes BIS and European Fund.
3 Derived by applying reported transactions to benchmark data;
breakdown of transactions by type of holder estimated 1962-63.
4 Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally-sponsored agencies and U.S. cor­
porations.
6 Includes short-term liabilities payable in dollars to commercial banks
abroad and short-term liabilities payable in foreign currencies to commer­
cial banks abroad and to “other foreigners.”
7 Includes marketable U.S. Treasury bonds and notes held by commer­
cial banks abroad.
8 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American and Asian Development Banks.
9 Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on first line are comparable with those




shown for the preceding date; figures on second line are comparable with
those shown for the following date.
10 Includes $101 million increase in dollar value of foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969 as
follows: liquid, $17 million, and other, $84 million.
11 Data on the second line differ from those on first line because cer­
tain accounts previously classified as “official institutions” are included
with “banks” ; a number of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions of foreign countries have been increased in
value to reflect market exchange rates as of Dec. 31, 1971.
N o t e . —Based on Treasury Dept, data and on data reported to the
Treasury Dept, by banks and brokers in the United States. Data correspond
generally to statistics following in this section, except for the exclusion
of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign
official nonreserve agencies, the inclusion of investments by foreign
official reserve agencies in debt securities of U.S. Federally-sponsored
agencies and U.S. corporations, and minor rounding differences. Table
excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters
of credit and non-negotiable, non-interest-bearing special U.S. notes held
by other international and regional organizations.

A 64

IN TL. CA P ITA L TR A N S A C TIO N S OF T H E U.S. □ JU L Y 1974
6 . U .S . LIQ U ID AND OTH ER LIABILITIES TO OFFIC IA L IN S T IT U T IO N S
OF FO R E IG N C O U N T R IE S , BY AREA
(Amounts outstanding; in millions of dollars)
Total
foreign
countries

End of period

Western
Europe 1

18,194
/17,407
\17,340
/ 4 15,975
\ 4 15,998
/23,786
1970 3.....................................................................................
123,775
/51,209
150,651
1968 3.....................................................................................

Canada

10.321
8,070
8; 062
4 7,074
4 7,074
13.620
13.615
30,010
30,134

1,310
1,867
1,866
1,624
1,624
2,951
2,951
3,980
3,980

Latin
American
republics
1,582
1,865
1,865
1,888
1,911
1,681
1,681
1,414
1,429

Asia

Africa

4,428
5,043
4,997
4,552
4,552
4,713
4,708
14,519
13,823

Other
countries 2

250
259
248
546
546
407
407
415
415

303
303
302
291
291
414
413
871
870

61,526

34,197

4,279

1,733

17,577

777

2,963

May.............................................................................
June.............................................................................
July..............................................................................
Aug..............................................................................
Sept..............................................................................
Oct...............................................................................
Nov..............................................................................
Dec.......................................................................

70.920
70,701
71,028
70,520
69,777
69.702
67,400
66,810

46.646
46.967
47.140
47.260
47.099
47.514
46,002
45,717

4,104
4,111
4,043
3,836
3,759
3,851
3,820
3,853

1,904
1,999
2,075
2,015
1,861
1,938
2,233
2,544

14,429
13,734
13,692
13,637
13,289
12,601
11,474
10,884

940
992
928
738
769
735
785
788

2,897
2,898
3,150
3,034
3,000
3,063
3,086
3,024

1974 Jan...............................................................................
Feb..............................................................................

63,891
64.097
65.527
67,163
67.959

43,290
42,389
42.771
42,648
42.761

3,945
4,262
4,195
4,309
4,302

2,446
2,743
2,887
3,522
3,384

10,479
10,878
11,631
12,360
12,988

838
1,000
1,249
1,402
1,620

2,893
2,825
2,794
2,922
2,904

1973

Apr.^...........................................................................
May^........................................................... ..............

1 Includes Bank for International Settlements and European Fund.
2 Includes countries in Oceania and Eastern Europe, and Western Euro­
pean dependencies in Latin America.
3 See note 9 to Table 5.
4 Includes $101 million increase in dollar value of foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969.
5 Data on second line differ from those on the first line because certain
accounts previously classified as “Official institutions” are included in
“ Banks” ; a number of reporting banks are included in the series for
the first time; and U.S. Treasury liabilities payable in foreign currencies

7 . SH O R T -TE R M

to official institutions of foreign countries have been increased in value by
$110 million to reflect market exchange rates as of Dec. 31, 1971.
N o t e . — Data represent short- and long-term liabilities to the official
institutions of foreign countries, as reported by banks in the United States;
foreign official holdings of marketable and nonmarketable U.S. Treasury
securities with an original maturity of more than 1 year, except for non­
marketable notes issued to foreign official nonreserve agencies; and in­
vestments by foreign official reserve agencies in debt securities of U.S.
Federally-sponsored agencies and U.S. corporations.

LIABILITIES TO F O R E IG N E R S R E P O R T E D BY BAN KS
IN T H E U N ITE D STA TES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonmonetary international
and regional organizations6

To all foreigners
Payable in dollars
End of period

IMF
Payable
gold
in
invest­
ment5
foreign
cur­
rencies

Total

U.S.
Treasury
bills and
Demand Time 2 certifi­
cates 3

Other
short­
term
liab.4

1971 8..........
197 2

40,199
f41,719
141,761
/55,404
155,428
60,724

39,770
41,351
41,393
55,018
55,036
60,228

20,460
15,785
15,795
10,399
6,459
8,288

6,959
5,924
5,961
5,209
4,217
5,631

5,015
14,123
14,123
33,025
33,025
31,850

7,336
5,519
5,514
6,385
11,335
14,458

429
368
368
386
392
496

1973—May.
June.
July..
Aug..
Sept..
O ct...
Nov..
Dec..

66,732
66,718
67,925
67,400
67,057
68,258
68,514
69,239

66,160
66,074
67,317
66,790
66,396
67,681
67,892
68,642

8,365
9,114
8,989
8,436
8,754
9,108
9,849
11,399

5,715
5,830
5,879
6,137
6,130
6,772
6,884
6,995

35,965
34,931
34,556
34,257
33,702
32,869
31,977
31,886

16,115
16,199
17,894
17,960
17,810
18,932
19,182
18,363

1974—Ja n ...
Feb..
M ar..
Apr.^
May^

67,281
69,404
72.936
74,936
78,289

66,641
68,635
72,170
74,230
77,635

10,822
11,473
11,651
11,973
11,812

7,030
7,066
7,168
7,504
7,708

29,543
30,274
31,444
32,676
34,028

12,246
19,822
21,907
22,076
24,086

Deposits

Total 1

1969............
19707..........

For notes see the following page.




800
400
400
400
400

Deposits
Total
Demand

U.S.
Treasury
bills and
Time2 certifi­
cates

Other
short­
term
liab.4

613
820
820
1,372
1,367
1,413

62
69
69
73
73
86

83
159
159
192
192
202

244
211
211
210
210
326

223
381
381
896
892
800

572
644
607
611
660
577
622
597

1,579
1,569
1,488
1,487
1,552
1,768
1,962
1,955

141
155
206
178
80
70
73
101

119
134
116
118
100
93
97
86

148
169
116
61
62
173
373
296

1,172
1,110
1,049
1,129
1,311
1,431
1,420
1,471

640
770
766
706
653

1,855
1,693
1.151
1,109
1,333

95
77
96
60
95

94
67
66
60
54

286
232
227
209
46

1,380
1,317
762
780
1,138

JU L Y 1974 □ INTL. C AP ITAL TR A N S A C TIO N S OF T H E U.S.

A 65

7 . SH O R T -TE R M LIABILITIES TO F O R E IG N E R S R E P O R T E D BY BAN KS
IN T H E U N ITE D STA TES, BY TYPE— C o n tin u e d
(Amounts outstanding; in millions of dollars)
Total to official, banks and other foreigners

To official institutions10

Payable in dollars
End of period

Demand

Time2

11,077
19,333
19,333
39,679
39,018
40,000

1,930
1,652
1,652
1,620
1,327
1,591

2,942
2,554
2,554
2,504
2,039
2,880

3,844
13,367
13,367
32,311
32,311
31,453

2,159
1,612
1,612
3,086
3,177
3,905

202
148
148
158
165
171

572
644
607
611
660
577
622
597

46,117
45,713
46,138
45,721
45,174
45,212
43,791
43,919

1,720
1,941
1,935
1,576
1,633
1,811
2,035
2,125

2,949
3,124
3,192
3,355
3,226
3,846
3,802
3,911

35,736
34,684
34,360
34,118
33,554
32,613
31,529
31,511

5,525
5,777
6,461
6,545
6,634
6,814
6,298
6,245

9 187
187
189
127
127
127
127
127

640
770
766
706
653

41,576
41,989
43.412
45,184
45,976

2,379
2,407
2,631
2,920
2,352

3,705
3,703
3,800
3,949
3,970

29,152
29,917
31,064
32,312
33,786

6,212
5,834
5,790
5,877
5,741

127
127
127
127
127

Demand

Time2

19718.....................
1972—Dec.............

38,786
J40,499
\ 40,541
J53,632
\53,661
59,310

20,397
15,716
15,726
10,326
6,386
8,203

6,876
5,765
5,802
5,017
4,025
5,429

3,971
13,511
13,511
32,415
32,415
31,523

7,113
5,138
5,133
5,489
10,443
13,659

429
368
368
386
392
496

1973—May............
June............
July.............
Aug.............
Sept.............
Oct..............
Nov.............
Dec.............

65,152
65,149
66,436
65,914
65,504
66,490
66,552
67,284

8,224
8,959
8,782
8,258
8,674
9,038
9,776
11,297

5,597
5,696
5,762
6,019
6,030
6,678
6,787
6,909

35,817
34,762
34,440
34,196
33,640
32,696
31,604
31,590

14,943
15,089
16,845
16,831
16,499
17,501
17,763
16,892

1974—Jan..............
Feb..............
Mar.............
Apr.*5..........
Mayp ..........

65,426
67,711
71,785
73,827
76,956

10,728
11,396
11,554
11,913
11,717

6,936
6,999
7,103
7,444
7,655

29,257
30,042
31,217
32,467
33,982

17,865
18,505
21,145
21,296
22,948

1969.......................

Other
short­
term
liab.4

Total

To banks11

Deposits

Payable
in
Other
foreign
short­ currencies
term
liab.4

U.S.
Treasury
bills and
certifi­
cates 3

U.S.
Treasury
bills and
certifi­
cates 3

Total

Deposits

Payable in dollars
Payable
in
foreign
cur­
rencies

To other foreigners
Payable in dollars

End of period

Total

Deposits
Total

U.S.
Other
Treasury
short­
bills and
term
certifi­Time2liab.4
Demand
cates

Deposits
Total

U.S.
Other
Treasury
short­
bills and
term
certifi­Time2liab.4
Demand
cates

To banks
and other
foreigners:
Payable in
foreign
cur­
rencies

1969.......................
1Q7A7
19715.....................
1972—Dec.............

27,709
/21,166
{21,208
/13,953
\14,643
19,310

23,419
16,917
16,949
10,034
10,721
14,340

16,756
12,376
12,385
7,047
3,399
4,658

1,999
1,326
1,354
850
320
405

20
14
14
8
8
5

4,644
3,202
3,197
2,130
6,995
9,272

4,064
4,029
4,039
3,691
3,694
4,645

1,711
1,688
1,688
1,660
1,660
1,954

1,935
1,886
1,895
1,663
1,666
2,145

107
131
131
96
96
65

312
325
325
274
271
481

226
220
220
228
228
325

1973—May............
June............
July.............
Aug.............
Sept.............
Oct..............
Nov.............
Dec.............

19,035
19,437
20,299
20,192
20,330
21,278
22,762
23,364

13,674
13,899
14,892
14,594
14,493
15,504
16,761
17,174

4,645
5,053
4,957
4,806
5,070
5,250
5,734
6,941

319
258
321
353
430
473
469
512

8
8
8
10
8
7
8
11

8,702
8,579
9,607
9,425
8,984
9,774
10,550
9,710

4,977
5,081
4,989
5,115
5,305
5,325
5,506
5,721

1,859
1,965
1,890
1,876
1,972
1,977
2,007
2,232

2,329
2,314
2,250
2,311
2,374
2,359
2,517
2,486

73
70
72
68
77
76
67
68

716
732
776
861
881
912
915
936

385
457
418
483
533
449
495
469

1974—Jan..............
Feb..............
Mar.............
Apr.p..........
Mayp ..........

23,850
25,722
28,373
28,643
30,980

17,501
19,035
21,384
21,487
23,750

6,329
6,857
6,572
6,601
7,054

511
521
506
678
774

14
32
54
63
73

10,648
11,625
14,251
14,145
15,849

5,835
6,044
6,350
6,576
6,704

2,020
2,131
2,351
2,392
2,312

2,719
2,775
2,797
2,817
2,911

91
93
98
92
124

1,005
1,045
1,104
1,274
1,358

513
642
639
579
526

1 Data exclude “holdings of dollars” of the IMF.
2 Excludes negotiable time certificates of deposit, which are included
in “Other.”
3 Includes nonmarketable certificates of indebtedness issued to official
institutions of foreign countries.
4 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates of deposit. See also note 8(a).
5 U.S. Treasury bills and certificates obtained from proceeds of sales of
gold by the IMF to the United States to acquire income-earning assets.
Upon termination of investment, the same quantity of gold was reac­
quired by the IMF.
6 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American Development Bank.
Includes difference between cost value and face value of securities in
IMF gold investment account.
7 Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
8 Data on second line differ from those on first fine because (a) those
liabilities of U.S. banks to their foreign branches and those liabilities of




U.S. agencies and branches of foreign banks to their head offices and
foreign branches, which were previously reported as deposits, are included
in “Other short-term liabilities” ; (b) certain accounts previously classified
as “Official institutions” are included in “Banks” ; and (c) a number of
reporting banks are included in the series for the first time.
9 Includes $15 million increase in foreign currency liabilities revalued
to reflect market exchange rates.
lOForeign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
11 Excludes central banks, which are included in “Official institutions.”
N o t e . —“Short term” refers to obligations payable on demand or having
an original maturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 9. Data exclude the “holdings of dollars”
of the International Monetary Fund; these obligations to the IMF consti­
tute contingent liabilities, since they represent essentially the amount of
dollars available for drawings from the IMF by other member countries.
Data exclude also U.S. Treasury letters of credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop­
ment Bank and the International Development Association.

A 66

IN TL. CA P ITA L TR A N S A C TIO N S OF T H E U.S. □ JU L Y 1974
8 . S H O R T TERM LIA B ILITIES TO F O R E IG N E R S R E P O R T E D BY BA N K S
IN T H E U N ITE D STA TES, BY C O U N TR Y
(End of period. Amounts outstanding; in millions of dollars)

Area and country

1973

1972
Dec.

Aug.

Sept.

Oct.

1974
Nov*

Dec.

Jan.

Feb.

Mar.

Apr.z>

Mayp

!
Europe:
Austria......................................................
Belgium-Luxembourg..............................
Denmark..................................................

United Kingdom.....................................
Yugoslavia................................................
Other Western Europe i ..........................
U.S.S.R.....................................................
Other Eastern Europe.............................

272
1,094
284
163
4,441
5,346
238
1,338
1,468
978
416
256
1,184
2,857
97
5,011
117
1,483
11
81

292
302 |
1,381 1 1,378
409
436 !
153
145
5,296
5,246
12,912 13,236
236
215
1,140
1,510
2,022
1,945
1,055
1,024
459
472
259
237
1,835
1,871
3,309
3,226
72
115
5,593
5,943
58
57
3,099
3,015
17
16
114
90

204
1,411
470
135
4,143
14,180
280
1,095
2,534
999
467
284
1,787
3,316
83
6,416
61
3,426
40
96

166
1,463
527
136
3,415
14,227
236
1,224
2,866
980
470
319
1,807
3,091
75
6,473
76
2,926
20
101

161
1,483
659
165
3,483
13,227
389
1,404
2,886
965
534
305
1,885
3,377
j
98
1 6,148
,
86
; 3,352
22
110

210
1,593
527
178
3,241
12,307
262
1,195
2,522
961
482
264
1,975
3,281
221
6,440
77
3,125
26
92

279
1,662
456
160
2,967
12,357
238
1,119
2,502
962
486
304
1,973
3,513
146
6,186
94
3,007
20
96

327
1,572
380
169
2,852
12,275
343
2,243
2,547
993
450
267
1,733
3,792
96
7,392
78
2,946
29
122

248
1,795
358
140
2,767
13,028
288
1,386
2,507
923
450
289
1,475
4,228
92
7,697
82
3,003
52
95

298
1,739
261
143
3,018
13,777
239
1,435
2,407
923
452
499
1,350
5,138
95
8,772
86
2,444
28
104

Germany..................................................
Greece.................... .................................
Italy..........................................................
Norway.....................................................
Portugal....................................................
Spain.........................................................
Switzerland...............................................

Total..................................................

27,136

40,217

39,971

41,426

40,598

40,742

38,982

38,525

40,605

40,901

43,210

Canada........................................................

3,467

3,787

3,721

3,812

3,967

3,862

4,158

4,432

3,841

4,553

4,164

Latin America:
Argentina..................................................
Bahamas 2 ................................................
Brazil........................................................
Chile........................................ ................
Colombia..................................................
Cuba..........................................................
Mexico......................................................
P anam a....................................................
Peru...........................................................
Uruguay....................................................
Venezuela..................................................
Other Latin American republics.............
Netherlands Antilles and Surinam.........
Other Latin America...............................

631
540
605
137
210
6
831
167
225
140
1,078
860
86
44

889
800
592
564
732
700
127
126
167
168
7
7
1,044
975
204
217
177
178
126
114
1,079 1
941
791
791
65
61
463
403

781
456
745
137
207
7
1,029
231
152
115
1,130
742
70
532

766
806
816
142
221
6
1,132
282
124
112
1,420
769
63
556

914
824
860
157
247
7
1,284
279
135
120
1,468
880
71
361

847
593
819
178
219
7
1,323
281
144
120
1,460
947
69
470

895
1,011
961
174
238
8
1,343
326
154
115
1,636
1,026
61
792

1,001
1,078
2,016
1,316
837
773
224
185
238
227
7
6
1,369
1,374
401
408
159
160
121
121
1,736 i 2,297
1,149
1,100
69
63
659
560

1,180
1,826
731
191
227
6
1,416
522
162
132
2,248
1,053
95
432

!
1
j
|
1
i
S
,
1
!

Total..................................................

5,560

6,226

6,283

6,334

7,215 ! 7,608

7,477

8,741

9,896

9,755

10,221

Asia:
China, People’s Rep. of (China Mainland
China, Republic of (Taiwan)...................
Hong Kong..............................................
India..........................................................
Indonesia..................................................
Israel.........................................................
Japan........................................................
Korea........................................................
Philippines................................................
Thailand....................................................
O ther........................................................

39
675
318
98
108
177
15,843
192
438
171
1,071

43
810
356
103
140
146
8,003
217
541
140
1,139

40
802
349
99
254
173
7,680
213
482
143
1,165

37
779
363
105
169
279
7,061
198
479
163
1,139

40
764
383
71
160
330
6,726
210
497
180
1,138

38
757
372
85
133
327
6,954
195
515
247
1,202

38
735
389
152
186
337
6,417
222
570
336
1,306

39
715
416
183
175
311
7,440
204
604
471
1,196

38
641
452
133
240
302
8,307
180
595
607
1,445

39
571
453
175
305
275
8,690
253
642
536
1,941

39
620
512
264
220
267
9,060
234
731
517
1,883

Total..................................................

19,131

11,640

11,401

10,771

10,500 i 10,826

10,690

11,752

12,940

13,878

14,347

Africa:
Egypt.........................................................
Morocco...................................................
South Africa.............................................
Zaire..........................................................
O ther.........................................................

24
12
115
21
768

41
10
100
27
683

34
11
132
19
765

34
10
103
26
747

35
11
114
87
808

72
11
97
42
837

72
12
119
30
1,044

52
17
148
42
1,335

68
15
83
43
1,500

71
20
122
52
1,703

1,034 | 1,056

1,059

1,277

1,593

1,709

1,968

3,131
59

2,986
74

2,917
66

2,849
60

2,979
52

2,980
68

j
I
1
j

63
14
109 1
24
824 J

939

862

961

919

Other countries:
Australia...................................................
All other...................................................

3,027
51

3,124
57

3,106
62

3,169
59

3,077

3,181 j 3,168

3,228

3,238

3,190

3,059

2,984

2,909

3,031

3,047

Total foreign countries...............................

59,310

65,914 ! 65,504

66,490

66,552

67,284

65,426

67,711

71,785

73,827

76,956

International and regional:
International 3...........................................
Latin American regional.........................
Other regional4........................................

951
307
156

1,125
1,183
289 !
298
72 I
70

1,403
299
66

1,610
290
62

1,628
271
57

1,537
256
64

1,404
228
61

863
226
62

840
217
51

1,038
226
69

3,183
55

Total..................................................

1,413

1,487

1,552

1,768

1,962

1,955

1,855

1,693

1,151

1,109

1,333

Grand total.......................................

60,724

67,400

67,057

68,258

68,514

69,239

67,281

69,404

72,936

74,936

78,289

For notes see the following page.




JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
8 . S H O R T -T E R M
IN

L IA B IL IT IE S T O F O R E I G N E R S R E P O R T E D B Y
U N IT E D S T A T E S , BY C O U N T R Y — C o n tin u e d

THE

A 67

BANKS

(End o f period. Amounts outstanding; in millions of dollars)
Supplementary data 5
1972

1974

1973

Apr.

Dec.

Apr.

Dec.

Apr.

2

3
9
17

12
22

9

19

8

10
11

62

53

87
92
114

65
75
104
109

68
86

102
88

118
92
90
156

137
90
129
245
28
71
52
119
40

Other Western Europe:
Cyprus.........................................
Iceland........................................ .
Ireland, Rep. o f ........................ .
Other Latin American republics:
Bolivia.........................................
Costa Rica..................................
Dominican Republic................
Ecuador...................................... .
El Salvador.................................
Guatemala...................................
H aiti..............................................
Honduras.....................................
Jamaica.........................................
Nicaragua....................................
Paraguay......................................
Trinidad & Tobago...................
Other Latin America:
Bermuda........................................
British West Indies.....................
Other Asia:
Afghanistan..................................
Bahrain..........................................
Burma...........................................
Cambodia.....................................
Iran................................................
Iraq................................................
Jordan...........................................

1972

1973

1974

Area and country

Area and country

9
15
53
70
91
62
83
123
23
50
32

66

121

76
132
27
58
41
61

86

127
25
64
32
79
26
17

17
15

22
20

(2)

(2)
36

100

17
18
5

25
24

19
23
17
3
114
26
4

23

2
88
9

2

2
3
93

10
4

127

21

56
39
99
29
17

21

244
109

201

22
24

11
11

124

4
243

12
2

101
6

1 Includes Bank for International Settlements and European Fund.
2 Bermuda included with Bahamas through Dec. 1972.
3 Data exclude “holdings o f dollars” o f the International Monetary
Fund but include IMF gold investment until Feb. 1972, when investment
was terminated.

Apr.

Dec

Apr.

Dec.

Apr.

Other Asia—Cont.:
Kuwait...................................
16
Laos........................................
3
Lebanon................................
60
Malaysia................................
25
Pakistan.................................
58
Ryukyu Islands (incl. Okinawa) 6 53
Saudi Arabia........................
80
Singapore..............................
45
Sri Lanka (C eylon).............
6
Syria.......................................
6
Vietnam.................................
185

39
2
55
54
59

36
3
55
59
93

28
3
62
58
105

68
40
108

344
77
5
4
135

236
53
6
39
98

334
141
13
5
88

303
164
13
40
98

Other Africa:
Algeria...................................
Ethiopia (incl. Eritrea).. . .
Ghana....................................
Kenya....................................
Liberia....................................
L ibya......................................
Nigeria...................................
Southern Rhodesia.............
Sudan.....................................
Tanzania................................
Tunisia...................................
Uganda..................................
Zambia..................................

31
29
11
14
25
296
56
2
5
6
7
10
7

32
57
10
23
30
393
85
2
3
11
10
7
28

51
75
28
19
31
312
140
1
3
16
11
19
37

111
79
20
23
42
331
78
2
3
12
7
6
22

110
118
22
20
29

All other:
New Zealand........................

27

30

34

39

33

1
2
12
17
11

4 Asian, African, and European regional organizations, except BIS and
European Fund, which are included in “Europe.”
5 Represent a partial breakdown o f the amounts shown in the “other”
categories (except “Other Eastern Europe”).
6 Included in Japan after Apr. 1972.

L O N G -T E R M L IA B IL IT IE S T O F O R E I G N E R S R E P O R T E D
B Y B A N K S IN T H E U N I T E D S T A T E S

(Amounts outstanding; in millions of dollars)
Country or area

To foreign countries
End o f period

Total

To
inti.
and
regional

Total

Official
institu­
tions

Other
Banks1 foreign­
ers

Ger­
many

United
King­
dom

Other
Europe

Total
Latin
America

Japan

Other
Asia

All
other
coun­
tries

1970................................
1971.................................
1972—Dec. 2 ..................

1,703
902
/ l , 000
\ 1,018

789
446
562
580

914
457
439
439

695
144
93
93

165
257
259
259

53
56
87
87

110
164
165
165

42
52
63
63

26
30
32
32

152
111
136
136

385
3
1
1

137
87
32
32

62
9
10
10

1973—May....................
June....................
July.....................
Aug.....................
Sept.....................
Oct......................
Nov.....................
D ec.....................

1,379
1,467
1,525
1,530
1,502
1,473
1,469
1,487

688
769
768
775
758
735
753
761

691
697
757
755
744
738
717
726

313
311
311
322
318
312
313
310

274
274
305
305
302
305
287
296

104
113
141
127
123
122
117
121

164
164
164
165
165
165
165
165

68
68
68
68
68
68
67
66

231
233
265
265
263
265
246
245

115
125
145
143
145
140
138
151

1
2
2
2
2
2
2
5

96
94
93
95
84
81
80
78

16
10
19
17
18
18
19
18

1974—Jan......................
Feb......................
Mar.....................
Apr.?5.................
May^.................

1,497
1,500
1,558
1,682
1,638

801
888
951
1,027
1,005

696
612
607
655
633

310
259
259
294
296

275
267
261
272
263

111
86
87
89
74

165
165
165
165
165

65
58
45
56
56

236
231
232
231
220

139
109
111
133
125

2
2
2
2
2

78
35
39
50
52

11
13
13
18
13

l Excludes central banks, which are included with “ Official institutions.’




2 Data on the two lines shown for this date differ because o f changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.

A 68

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974
1 0 . E S T IM A T E D

F O R E IG N

H O L D IN G S

OF

M ARKETABLE

U .S .

TREASURY

BONDS AND

NOTES

(End o f period ; in m illions o f dollars)
1973
May
Europe:

June

Aug.

July

U nited K ingd om ..................................
Other W estern E u rop e.......................
Eastern E u rop e....................................

6
135
43
281
85
5

6
135
43
280
85
5

6
135
42
275
85
5

6
135
37
236
85
5

1974

Sept.

Oct.

D ec.

N ov.

7
165
37
247
85
5

7
165
37
290
85
5

Feb.

Jan.

M ar.

7
165
38
400
85
5

7
235
34
423
86
5

7
235
33
437
91
5

7
260
32
450
91
5

1
A pr.p

M ay?

7
260
34
439
90
5

7
260
33
460
89
5

7
260
35
470
88
5

T o ta l...............................................

555

554

547

504

546

588

700

789

808

845

835

854

865

C an a d a........................................................

560

560

560

560

560

560

567

582

597

832

847

848

849

Latin America:
Latin American republics..................
Other Latin A m erica.........................

1
6

1
6

4
3

8
3

9
3

9
3

11
3

11
3

11
3

11
3

11
3

11
3

11
5

T o ta l...............................................

7

7

7

11

12

12

14

14

14

14

14

14

16

Asia:
Japan........................................................
Other A sia .............................................

5,978
10

5,977
10

5,977
9

5,949
9

5 ,9 5 0
11

5 ,9 5 0
11

5,143
11

4 ,5 5 2
11

4 ,0 6 6
11

3,718
11

3,703
11

3,531
11

3 ,4 9 9
12

T o ta l...............................................

5,988

5,988

5 ,987

5 ,9 5 9

5,961

5,961

5,154

4 ,563

4 ,0 7 7

3,729

3 ,714

3 ,5 4 2

3 ,5 1 0

183

183

183

183

158

158

158

158

158

157

157

157

157

25

25

25

25

25

25

25

25

25

25

25

25

25

7,318

7 ,317

7,308

7,241

7,261

7,303

6,6 1 7

6,131

5,678

5 ,6 0 2

5,592

5 ,4 4 0

5,421

142
27

72
27

1
28

1
45

21
45

6
47

1
47

20
49

51
49

217
49

141
44

174
41

International and regional:
International.....................................
Latin American region al..................

1
48

T o ta l...............................................

169

100

29

46

66

53

48

49

69

100

267

185

214

Grand to ta l..................................

7 ,4 8 7

7 ,4 1 7

7 ,337

7,2 8 7

7 ,3 2 7

7 ,3 5 6

6 ,6 6 5

6 ,1 7 9

5 ,7 4 7

5 ,7 0 2

5,8 5 9

5,6 2 5

5 ,6 3 6

N o t e .— D ata represent estim ated official and private holdings o f marketable U .S. Treasury securities with an original maturity o f more than 1

year, and are based on benchmark surveys o f holdings and regular m onthly
reports o f securities transactions (see Table 14).

1 1 . S H O R T -T E R M C L A I M S O N F O R E I G N E R S R E P O R T E D
IN T H E U N I T E D S T A T E S , B Y T Y P E

BY

BANKS

(A m ounts outstanding; in m illions o f dollars)
Payable in dollars

Payable in foreign currencies

Loans to—
End o f period

Total
Total
Total

Official
institu­
tions

B anks1

Others

C ollec­
tions
out­
stand­
ing

A ccept­
ances
made
for acct.
o f for­
eigners

Other

Total

Foreign
govt, se­
D eposits curities,
with for­ com l.
and fi­
eigners
nance
paper

Other

1970................................... 10,802
/1 3 ,1 7 0
1Q71 2
113,272
/15,471
1Q77 3
115,676

10,192
12,328
12,377
14,625
14,830

3,051
4 ,503
3 ,969
5 ,6 7 4
5,671

119
223
231
163
163

1,720
2,613
2,0 8 0
2,975
2 ,9 7 0

1,212
1,667
1,658
2,535
2 ,5 3 8

2,389
2,475
2,475
3,269
3 ,2 7 6

3 ,985
4 ,243
4 ,2 5 4
3 ,2 0 4
3 ,2 2 6

766
1,107
1,679
2,478
2 ,6 5 7

610
842
895
846
846

352
549
548
441
441

92
119
173
223
223

166
174
174
182
182

1973— M ay.....................
Ju n e.....................
Ju ly ......................
A u g......................
Sept......................
O ct........................
N o v ......................
D e c .......................

18,550
18,825
19,012
18,978
18,725
19,298
19,588
20,719

17,696
17,987
18,149
18,091
17,948
18,438
18,797
20,0 5 7

6,933
7 ,318
7 ,0 2 4
6,973
6 ,8 0 9
6,983
7 ,0 7 0
7,7 1 8

163
205
162
176
160
216
252
271

3,813
4 ,0 7 0
3,9 2 6
4 ,0 2 9
3,918
3,989
4 ,0 8 4
4,5 8 9

2 ,9 5 6
3 ,043
2 ,9 3 6
2 ,7 6 8
2,731
2,7 7 8
2,7 3 3
2 ,8 5 9

3 ,8 2 4
3,881
3,871
3 ,948
4 ,0 7 0
4 ,0 9 9
4 ,2 8 7
4 ,3 0 6

3,6 2 3
3 ,9 8 4
3 ,9 2 2
3 ,7 1 6
3 ,7 1 8
3 ,774
3 ,7 8 8
4 ,1 5 5

3 ,3 1 7
2 ,8 0 4
3 ,3 3 2
3 ,4 5 4
3,351
3 ,5 8 2
3 ,6 5 2
3 ,8 7 7

854
839
863
887
777
861
790
662

499
552
561
488
459
510
512
428

237
140
151
151
143
187
131
119

118
147
151
248
175
163
148
115

1974— Jan........................
F eb .......................
M ar......................
A p r.p ...................
May**...................

21,081
22,968
2 5 ,654
26,559
29 .574

2 0,279
2 2 ,1 2 4
24,805
25,7 0 2
28,691

7,413
7 ,9 4 9
9 ,0 8 0
9 ,5 8 7
10,168

303
303
421
361
363

4 ,4 2 9
4 ,9 9 2
5,807
6,1 5 7
6 ,594

2 ,6 8 0
2 ,6 5 4
2 ,8 5 2
3 ,069
3,211

4 ,3 8 6
4 ,4 2 6
4,641
4,8 0 5
5 .0 8 0

4 ,1 0 7
4 ,5 5 4
5,1 2 5
5 ,8 1 0
6 .4 8 6

4 ,3 7 3
5 ,1 9 5
5,958
5,501
6 ,9 5 6

802
844
849
857
883

467
594
545
589
611

162
121
160
99
113

173
129
144
169
159

1 Excludes central banks, which are included with “Official institutions.”
2 D ata on second line differ from those on first line because (a) those
claims o f U .S. banks on their foreign branches and those claims o f U .S.
agencies and branches o f foreign banks on their head offices and foreign
branches, which were previously reported as “Loans” , are included in




“ Other short-term claim s” ; and (b) a number o f reporting banks are included
in the series for the first time.
3 D ata on the two lines shown for this date differ because o f changes
in reporting coverage. Figures on the first line are comparable in cover­
age with those shown for the preceding date; figures on the second line
are comparable with those shown for the following date.

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
12.

S H O R T -T E R M C L A I M S O N
IN T H E U N I T E D

F O R E IG N E R S R E P O R T E D
S T A T E S , BY C O U N T R Y

BY

A 69

BANKS

(End o f period. A m ounts outstanding; in m illions o f dollars)
1973

1972

1974

Area and country
Aug.

Europe:
Austria......................................................
Belgium-Luxembourg..............................
Denm ark..................................................
Finland.....................................................
France.......................................................
Germany...................................................
Greece.......................................................
Italy...........................................................
Netherlands..............................................
Norway.....................................................
Portugal....................................................
Spain.........................................................
Sweden......................................................
Switzerland...............................................
Turkey.......................................................
United Kingdom.....................................
Yugoslavia................................................
Other Western Europe.............................
U.S.S.R......................................................
Other Eastern Europe.............................

120
59
118
330
321
29
255
108
69
19
207
164
125

6

997

22
20

Sept.

18
107
67
125
368
281

20

278
155
70
14
251
184
206

6

1,357

10
21

Oct.

14
190
52
114
413
313
16
242
144
67
18
183
166
234

6

1,304

10

Nov.

15
150
50
97
461
366
26
282
132
74
23
183
155
242

8

.

Dec.

14
145
53
89
525
392
23
363
172
82

22

189
177
203
16

1,236

1,210

34
49
87

19
26
51
72

8

Jan.

11
148
48
108
621
311
35
316
133
72
23

222
153
176

Feb.

14
134
50
106
649
342
41
313
139
85
25
208
135
240

10

11

1,456

27
46
59

1,490
9
19
29
64

10

Mar.

36
143
60
93
682
382
36
330
147
91
25
180
106
338
9
1,621
15

20

20
216
76
97
743
395
37
482
174
76
37
284

Apr.i>

May25

40
183
57
115
721
355
47
504
174

32
155
67
124
623
441
48
512

86

202
96
33
322
95
427

33
70

29
318
132
327
18
1,626
13
28
30
65

2,164
25
45
38
96

121

270
16
2,009

12
22

8

41
49

42
83

26
46
97

Total..................................................

3,067

3,664

3,654

3,678

3,843

3,985

4,104

4,416

5,190

4,865

5,552

Canada..........................................................

1,914

2,186

1,909

2,210

1,979

1,960

1,880

2,037

2,243

2,190

2,359

379
519
649
52
418
13

455
623
879
40
423
13
1,309
252
178
39
430
409
31
91

469
702
837
80
423
15
1,368
273
208
45
436
431
23
137

485
612
826
125
413
13
1,337
263
204
47
469
465
17
124

498
873
900
151
397

521
577
953
136
425

539
1,041
958
155
428

686

1,370
266
178
55
517
490
13
140

1,344
294
186
58
482
542
17
356

1,418
297
184
51
510
546
19
461

679
1,287
1,114
180
459
13
1,426
345
194
44
586
600
29
268

1,148
1,180
193
467
13
1,627
390
224
38
627
617
259

641
1,919
1,315
165
473
13
1,650
406
264
38
557
618
27
188

5,448

5,401

5,861

5.904

6,619

7,224

7,488

8,274

22

31
140
147
16

179
361

14
89
145
5,746
372
105
206
349

36
117
124
16
96
155
,034
369
118
225
377

166
6,400
403
181
273
394

24
119
169
16
105
153
6.466
432
189
322
466

19
147
189
15
107
140
,960
477
182
364
560

27
183
170
19
97
165
7,857
498
197
405
521

19
231
179
18
71
140
8,599
555
223
434
691

18
315
166
25
105
135
9,714
632
258
389
661

Latin America:
Argentina..................................................
Bahamas 1................................................
Brazil.........................................................
Chile..........................................................
Colombia..................................................
Cuba..........................................................
Mexico......................................................
Panama.....................................................
Peru...........................................................
Uruguay....................................................
Venezuela..................................................
Other Latin American republics.............
Netherlands Antilles and Surinam.........
Other Latin America...............................

1,202

244
145
40
383
388
14
36

442
488
915
50
422
13
1,348
262
176
35
441
394
38
91
5,115

5,171

6

7
141
130
19
81
145
5,801
348

Total..................................................

4,480

Asia:
China, People’s Rep. of (China Mainland)
China, Republic of (Taiwan)..................
Hong Kong..............................................
India..........................................................
Indonesia..................................................
Israel.........................................................
Jap an ........................................................
Korea.......................................................
Philippines................................................
Thailand....................................................
Other.........................................................

194
93
14
87
105
,152
296
149
191
300

183
116
17
77
133
5,791
336
129
185
350

1

121

128

121

12

88

11

36
65

11

20

Total..................................................

5,584

7,321

7,331

7,297

7,666

8,238

8,463

9,159

10,138

11,160

12,415

Africa:
Egypt.........................................................
Morocco....................................................
South Africa.............................................
Zaire..........................................................
Other.........................................................

4
143
13
118

21

41
5
151
49
173

43

38
4
150
51
163

40
7
147
61
155

35
5
129
60
159

42
4
133
56
178

40
4
134
67
175

42

157
48
146

131
61

210

44
9
153
79
192

54
4
206
72
218

Total..................................................

299

419

405

406

410

413

420

466

477

554

Other countries:
Australia...................................................
All other....................................................

291
40

230
41

218
36

223
36

251
36

243
43

279
37

268
49

328
64

318
59

353

Total..................................................

330

271

254

259

287

286

316

317

392

377

42.0

Total foreign countries................................

15,674

18.977

18.724

19.297

19.587

20,718

21,080

22.967

25.653

26.558

29,572

International and regional...........................

3

1

1

1

1

1

1

1

1

1

1

Grand total.......................................

15,676

18.978

18.725

19.298

19.588

20,719

22.968

25.654

26.559

29,574

11

1 Includes Bermuda through Dec. 1972.
N o t e . — Short-term claims are principally the following items payable
on demand or with a contractual maturity o f not more than 1 year: loans
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for




21,081

21

66

their own account or for account o f their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.

A 70

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974
1 3 . LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
Type

Country or area

Payable in dollars
End o f
period

Total

Loans to—
Other
long­
term
claims

Payable
in
foreign
curren­
cies

United
King­
dom

Other
Europe

Latin
Canada America

All
other
countries

Japan

Other
Asia

115
246
319
353

548
583
881
900

292
429
503
514

Total

Official
institu­
tions

Banks 1

Other
foreign­
ers

1970................... 3,075
1971................... 3,667
19722 ................ J4,954
\5,029

2,698
3,345
4,539
4,555

504
575
833
836

236
315
430
430

1,958
2,455
3,276
3,289

352
300
375
435

40
40

71
130
145
145

411
593
704
701

312
228
406
406

1973—M a y ....
June___
July.......
Aug.......
Sept.......
Oct........
N ov.......
D ec.......

5,523
5,609
5,628
5,524
5,410
5,593
5,788
5,862

5,020
5,100
5,119
5,012
4,885
5,037
5,248
5,310

932
978
957

3,543
3,572
3,609
3,496
3,367
3,458
3,566
3,610

455
464
455
466
456
476
463
480

48
45
54
46
70
80
78
72

131
131
128
137
131
130
138
140

923
980
1,029
1,007
976

511
523
517
404
418
491
484
489

1,982
1,963
1,941
1,980
2,088
2,072

335
316
315
309
256
262
255
247

1,058
1,096

1,041
1,127
1,129

545
550
554
514
508
538
555
571

1,157
1,186
1,203
1,246
1,282

558
561
535
548
501
514
516
533

1974—Jan........
Feb . ..
Mar.......
Apr.p . ..
May p . ..

5,803
5,873
6,049
6,660
6,706

5,252
5,270
5,432
6,018
6,088

1,115
1,166
1,253
1,550
1,548

559
580
627
721
746

3,578
3,525
3,552
3,747
3,793

472
524
542
566
550

79
79
75
76
67

137
144
146
190
214

484
457
473
478
467

2,033
2,061
2,129
2,344
2,401

253
249
248
246
233

1,284
1,293
1,300
1,328
1,336

509
511
490
529
520

1 ,002
1,010

25
22

1 Excludes central banks, which are included with “Official institutions.”
2 Data on the two lines shown for this date differ because o f changes in
reporting coverage. Figures on the first line are comparable in coverage

1,012

1,059
1,099
1,1 0 2

1,158
1,263
1,546
1,535

1,325
1,458
1,996
2 ,012

2,006
2,002

1,1 2 2

with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date,

14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)

Marketable U.S., Treas. bonds and notes

U.S. corporate
securities 2

1

Foreign bonds

Foreign stocks

Net purchases or sales
Period
Total

Foreign

Intl.
and
regional
Total

Official

Other

Pur­
chases

Sales

Net pur­ Pur­
chases or chases
sales

Sales

Net pur­ Pur­
chases or chases
sales

Sales

Net pur­
chases or
sales

1971...............................
1972...............................
1973...............................

1,672
3,316
305

130
57
-1 6 5

1,542
3,258
470

1,661
3,281
465

-1 1 9
-2 3
6

14,593
19,073
18,543

13,158
15,015
13,810

1,435
4,058
4,733

1,687
1,901
1,474

2,621
2,961
2,467

-9 3 5
- 1 ,0 6 0
-9 9 3

1,385
2,532
1,729

1,439
2,123
1,554

-5 7
409
176

1974—Jan.-MayP. . . .

-5 5 4

166

-7 0 9

-688

-2 2

6,501

5,805

696

466

1,382

-9 1 5

943

925

19

1973—M ay...................
June...................
July...................
Aug....................
Sept....................
Oct.....................
N ov...................
D ec....................

-4 8
-7 1
-7 9
-5 1
40
29
-6 9 1
-4 8 6

-3 3
-6 9
-7 1
17

-1 5
- 1
-9
-3 9

1,101

41
188
422
464

142
125

152
103
207
157

-9

107
125
105
131
178
144

12
12
1
- 8
10
- 2
-2 2

-4 8 7

336
317
209

-1 0 6
-6 1
-3 4
-2 3 8
-2 1 3
-6 5

137
123
108
117
115
129
156
159

125

1

1,142
1,087
1,320
1,328
1,174
1,807
1,948
1,336

1974—Jan.....................
Feb....................
M ar...................
Apr.p.................
May**.................

-4 3 2
-4 5
157
-2 3 4

20

-4 5 2
-7 6
—10
-1 5 2
-1 9

364
145
398
323
153

-2 9 2
-4 5
-2 9 5
-2 1 9
-6 3

209
206
167
189
173

207
206
183
153
175

11

20

-1 3
-5

31
166
-8 2
29

-1 5

*

-1

-9
-68
20

42
-686

-2 8
8

12

15
-7 2 2
-5 0 6

27
36
19

-4 7 2
-3 7

19
-3 9
-10

-1 7 1
-7

19
-12

1,715
1,200

1,672
1,060
853

1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions of foreign countries.
2 Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues o f new debt securities




899
898
864
963
1,722
1,692
1,359
1,453
1,188
1,474
844
845

101

256
-2 3

96
67
97
104
144

262

71

12

100
102

212
86

198
216
8

103
89

101

22

111

15
2
-1

-1 6
36
- 2

sold abroad by U.S. corporations organized to finance direct investments
abroad.
N o t e .—Statistics include transactions of international and regional
organizations.

JULY 1974 o INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 71

15. NET PURCHASES OR SALES BY FOREIGNERS OF U .S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)

Period

Pur­
chases

Sales

1971.......................
1972.......................
1973.......................

11,626
14,361
12,762

10,894
12,173
9,978

731
2,188
2,785

87
372
439

1974—Jan.-M ayp

3,756

3,381

375

160

1973— M ay..........
June..........
July...........
Aug............
Sept...........
Oct............
N ov...........
Dec............

778
766
880
972
948
1,369
1,482
873

898
632
564
631
734
1,272
1,088
878

-1 2 0

- 2
2

1974—Jan.............
Feb............
Mar...........
Apr.p........
May^........

974
741
896
575
571

801
585
846
559
590

1

Ger­
many

Net pur­
chases or France
sales ( —)

134
316
341
214
96
394
-4

131
-5 1

219
297
339

2

67
53
63

7

193

-4 3
-2 3
-1 9
-7
27
9

-1 4
7
25
60
18
5
54
32

4
5
-2 6
17
7

37
52
40
35
29

1
6

6

106
30

173
156
49
16
-1 9

Nether­ Switzer­
lands
land

68

39
14
22

18

United
King­
dom

Other
Europe

Total
Europe

168
642
685

-4 9
561
366

71
137
274

627
1,958
2,104

-9 3
-7 8
99

104

-1 4

42

491

-6 5

-3 8
15
28
40
15

3

-1 1 6
74

-7

- 2
11
11

55
71
81

27
16
-9
-4

21

-22

52
80
57
54
-3 4

21

28
34
14
25

68

Latin
Canada America

52
83
5

-4 6

-1 7

12

-1 6

11

8
- 2

8

245
169
62
327

10

*
-2 6
-1 8

67
-2 5

6

7

-1 2

-8

43
40
24
-5

27
-5
14
-1 4
-3 6

23
33
25
-3 5
-5

201

-2 7
*

2

108
256
577

-1

19

210

-6 4

68

37
-3 2

163
91
19
16

Asia Other 1

-4 2
1

-21
-1 0

9

-7

-1 6

2

5
- 6

41
108
34

-3
4
-1 4
-1 6

33
-9
-2 9
3
-1 4

1
-1
2
2

9

Includes international and regional organizations.

16. NET PURCHASES OR SALES BY FOREIGNERS OF U .S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Period

Total

1971.......................
1972.......................
1973.......................

703
1,871
1,948

201

1974—Jan.-May p

321

76

1973—M ay..........
June..........
July...........
Aug...........
Sept...........
Oct............
N ov...........
D ec............

161
54
106
123

1
6

1974—Jan.............
Feb............
Mar...........
Apr .*3........
MayP........

France
15
336

*
31

Ger­
many
35
77
-3 3
28

r89
-1 4 4
149

3

200

60

27

10

39
315
473

631
1,293
1,204

37
82
49

44

19
22

Asia

Africa

96

-1 3

249

18

5

120

22
-2

215

7
7
3

1

2

4
4
1
1

1
2
11
1

3
16

-2 0 9
-1 8 3

1

-1 0 4
-1 1 9

-1 9
-1 5
57
14
-1 4
76
60

-1

46
28
37

4
*
*
—2
*
*

23
*

7
10
12
1

5
32
-9
-1 5

117
44
-6 9
23

6
8

28

17
1

N o t e .—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues o f new

-1
-1

86
122

-21

152
159
30
-7 1

-6

-2 0

-2 0

-5 2
94
26

111
20

4
*

14

-5

-2
-1

6

4
3

-2 2 1

*

-1

-1

5

Other Intl. and
countries regional

*

- 2

323
588

65

1
—2

25
*
*
3
♦

1
1

327
357
275

Latin
Canada America

76
-3
13
-5

*

11
10

Total
Europe

-1

*
*

*
*

Other
Europe

-2

1

53
4
9

-1 3 8
-1 9

216
135
307

-1

74
-1 9

-4
-3
-5 7

2

-2
-1 1

Nether­ Switzer­ United
land Kingdom
lands

-1

*
3

2

*

10

*

*

*
*
*
*
*
*
*
*
*
*
*
*

39
148
52

-2 1

*

270
*

10

*
*
*
*
*
*

-6 3
59
150
24
-3 9
-1 0 3
-3 3
-3

*
*
*
*
*

r18
-4 6
215
86

-3

debt securities sold abroad by U.S. corporations organized to finance di­
rect investments abroad.

17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA

18. FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS

(In millions of dollars)

(Amounts outstanding; in millions of dollars)

Period

Total

Intl.
and
re­
gional

Total
foreign
coun­
tries

Eu­
rope

Canada

1971.................
1972..................
1973.................

-9 9 2
-6 5 1
-8 1 8

-3 1 0
-9 0
139

-6 8 2
-5 6 1
-9 5 7

31
492
-1 4 1

-2 7 5
-6 5 1
-5 6 9

-3 6 6
-2 9 6
-1 6 8

-66

-120

1974—
Jan.-M ay 71

-8 9 7

13

-9 1 0

1973—M ay.. .
June. . .
July.. . .
Aug.. ..
Sept.. . .
Oct.......
N o v . ..
D e c.. ..

3
34
-1 0 5
-6 9
-2 5
-2 4 0
-2 3 6
-5 0

11

1974—Jan
Feb___
Mar__
A pr.?. .
Mayp . .

-2 9 1
-4 6
-3 1 1
-1 8 3
-6 5

7
3
5
4
4
9
51
-4




6

4
3
5

-8

27
-1 0 8
-7 5
-2 8
-2 4 3
-2 4 5

Latin
Amer­ Asia
ica

-4 6
-6 9

Af­
rica

-5 7
3

Other
coun­
tries

511
419
333
311

314
300
320
314

1972—Mar..............................

325
312
286
372

379
339
336
405

310
316
290
333

364
243
255
231

384

227

694

-4 2

62

-5

10

-1 2
6

6

6

-1

-1 3

-9 3
-4 4

13
-1 3
-4

-1 3
9

14
9

-101

-2 8
-2 5
-4 7
-4 5

-2 8 7
-5 2
-3 1 5
-1 8 6
-7 0

-8 1
-6 2
-2 4
-4 7
-2 6

8

-1 4 8
-8 9

-8
-8
-6

-11

-1 5

1

*
2

2

3
2
1

*
3
1974— Mar.p...........................

-2 0 4

-2

-11

-9
-1 5

-2 8 8
-1 5 7
-3 4

-6 4
-1 0 4
-3 4

1

*
*
*

6
-2 2

-1

32
10
12

9

Debit
balances
(due from
foreigners)

1971—Mar..............................

240

-8
-1

Credit
balances
(due to
foreigners)

32
29
37

-21
10
-21

End of
period

-1

2

-4
*
★
*

I
3
*
3

N o t e .—Data represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.

A 72

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974
19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions o f dollars)

Claims on U.S.
L ocation and currency form

IN ALL FOREIGN COUNTRIES
Total, all currencies............................

Payable in U.S. dollars.

IN UNITED KINGDOM
Total, all currencies..........

Payable in U.S. dollars.

IN BAHAMAS A N D CAYMANS i
Total, all currencies..............................

For notes see p. A -76




Claims on foreigners
Other
branches
of parent
bank

N on­
Offi­
cial
bank
for­
insti­
tutions eigners

Month-end

Total

1971—D ec..............
1972—D ec..............

61,253
80,034

4,791
4,735

2,310
2,124

2,481
2,611

54,678
73,031

11,210

24,525
11,717 36,738

1,167 17,775
1,665 22,910

1,784
2,268

1973—Apr..............
M ay.............
June.............
July.............
Aug..............
Sept..............
Oct...............
N o v .r...........
D e c.r...........

88,565
90,388
96,107
100,987
102,392
108,080
111,087
117,325
121,951

3,882
4,185
4,925
5,350
5,109
4,806
4,802
5,808
4,882

1,661
1,915
2,325
2,502
2,286
1,916
1,831
2,848
1,882

2,2 2 1

2,270
2,601
2,848
2,823
2,890
2,970
2,961
3,000

81,821
83,158
87,786
92,071
93,470
98,681
101,789
106,041
112,323

12,399
13,116
13,149
14,934
15,289
16,778
17,721
18,362
19,222

41,745
41,414
44,953
46,155
46,012
48,084
49,477
51,975
55,910

1,993
1,875
1,805
1,934
2,147
2,239
2,108
2,503

25,683
26,753
27,879
29,048
30,156
31,672
32,352
33,497
34,687

2,862
3,046
3,395
3,567
3,813
4,593
4,496
5,476
4,746

1974—Jan...............
Feb...............
Mar. r..........
A pr.. . . . . . .

124,000
127,240
136,983
137,584

4,605
4,696
8,046
6,006

1,552
1,893
5,443
3,432

3,054
2,802
2,603
2,575

114,789
117,481
123,763
126,500

19,501
20,341
22,379
22,583

57,100
57,163
60,264
62,084

2,733
2,957
3,030
3,145

35,455
37,020
38,090
38,688

4,605
5,064
5,174
5,078

1971—D ec..............
1972—D ec..............

40,137
54,058

4,534
4,473

2,303

2,231
2,371

35,026
48,768

6,648
8,083

17,986
26,907

864 9,518
1,128 12,651

577
817

1973—Apr...............
M ay.............
June.............
July..............
Aug..............
Sept..............
Oct...............
N o v .r..........
D e c.r...........

55,685
56,118
59,984
62,239
63,553
66,361
68,400
73,637
79,502

3,558
3,900
4,575
4,775
4,502
4,386
4,356
5,336
4,428

1,888

2 ,012

2,276
2,467
2,227
1,865
1,789
2,787
1,844

2,298
2,308
2,275
2,521
2,567
2,549
2,583

1,924 51,138
51,068
54,117
56,058
57,670
60,362
62,461
66,595
73,308

8,043
8,178
8,118
8,852
9,660
10,315
11,223
11,874
12,844

28,682
27,836
30,457
30,964
30,545
31,767
32,595
34,992
39,052

1,023
1,015
1,037
1,123
1,193
1,186
1,223
1,302
1,587

13,390
14,038
14,505
15,118
16,272
17,093
17,419
18,427
19,824

989
1,149
1,292
1,407
1,380
1,613
1,583
1,705
1,767

1974—Jan...............
Feb...............
Mar. r..........
Apr..............

82,018
83,907
92,838
93,126

4,166
4,311
7,581
5,641

1,515
1,838
5,359
3,390

2,651 76,101
2,473 77,679
2,281 83,272
2,251 85,342

13,256
13,769
15,776
15,778

40,082
40,185
42,971
44,236

1,848
2,024
1,977
2,426

20,915
21,701
22,548
22,902

1,751
1,918
1,925
2,143

1971—D ec..............
1972—D ec..............

34,552
43,684

2,694
2,234

1,230
1,138

1,464 30,996
1,096 30,430

5,690 16,211
5,659 23,983

476 8,619
609 10,179

1,020

1973—Apr..............
M ay.............
June.............
July.............
Aug..............
Sept..............
Oct...............
N ov..............
D ec..............

48,971
48,860
51,203
53,996
52,880
55,842
57,306
61,897
61,732

1,661
1,743
1,875
2,500
1,877
1,473
1,833
2,230
1,789

5,437
5,725
5,279
6,274
6,849

1974—Jan................
Feb...............
Mar..............
Apr..............

63,757
63,585
68,076
68,698

1,484
1,477
3,070
2,675

1971—D ec..............
1972—D ec..............

24,428
30,381

2,585
2,146

21,493
27,787

4,135
4,326

1973—Apr..............
M ay.............
June.............
July.............
Aug..............
Sept..............
Oct...............
N ov..............
D ec..............

31,729
30,809
32,763
33,381
32,807
34,251
35,511
39,096
40,323

1,539
1,654
1,784
2,193
1,538
1,348
1,681
2,042
1,642

29,675
28,569
30,286
30,464
30,569
32,062
33,062
36,218
37,816

1974—Jan...............
Feb..............
Mar..............
Apr..............

42,131
41,762
46,062
46,402

1,368
1,384
2,967
2,586

39,932
39,409
42,212
42.791

1971—D ec..............
1972—D ec..............

8,475
13,091

1,282
1,496

505
225

777 7,101
1,272 11,419

1973—Apr..............
M ay.............
June.............
July.............
Aug..............
Sept..............
Oct...............
N ov.............
D ec..............

13,039
14,090
15,614
16,466
19,341
20,673
20,698
21,503
23,771

1,395
1,488
1,909
1,927
2,260
2,280
1,976
2,525

282
261
402
347
576
489
272
824
313

1,113
1,227
1,507
1,579
1,684
1,791
1,704
1,702

1974—Jan............... 24,071
Feb............... 25,657
Mar.............. 28,444
Apr.............. 228.776

2,011

228
170
1,727
803

Total

2,001

1,882
3,239
2,281

Parent
bank

2,102

1,633

794
909

Other

Total

Other
banks

2,012

Other

862

1,492
935
604
879
1,181
738

834
864
1,008
942
870
954
1,049
1,051

46,124
45,783
47,821
49,923
49,423
52,489
53,518
56,808
57,761

29,130
28,254
30,223
30,652
29,525
8 , 0 2 2 30,774
7,970 31,617
8,552 33,813
8,773 34,442

646
610
604
646
677
659
685
700
735

10,912
11,194
11,716
12,350
12,372
13,035
13,247
13,743
13,811

1,185
1,334
1,506
1,574
1,580
1,879
1,954
2,859
2,183

521
616
2,319
1,839

964
861
751
837

60,185
59,792
63,020
64,124

9,123 35,796
9,209 34,813
10,596 36,302
10,695 36,785

907
916
887
1,073

14,359
14,853
15,235
15,572

2,087
2,317
1,986
2,097

12,762
17,976

4,596
5,485

350
447

4,034
3,943
3,900
4,042
4,887
5,399
5,769
6,273
6,509

20,042
18,776
20,341
20,137
19, 134
19,759
20,336
2 2 ,i650
23,899

5,600
5,851
6,045
6,286
6,549
6,904
6,956
7,296
7,409

514
586
693
723
699
840
768
835
865

6,825
6,902
8,130
8,262

25,098
24,415
25,475
25.788

8 ,010

8,093
8,608
8,741

830
969
882
1.024

3,784
6,965

3,316
4,454

92
175

1,688

11,399
12,274
13,448
14,253
16,642
17,890
18,198
18,412
21,307

6,374
6,874
7,915
8,459
9,846
10,596
10,618
10,367
12,302

5,026
5,400
5,533
5,795
6,796
7,294
7,580
8,045
9,005

244
328
256
286
439
504
524
566
463

1,783
1,713
1,512
1,478

21,581
23,262
24,594
25,872

12,232
13,293
14,660
15.495

9,349
9,969
9,934
10.376

479
513
611
623

1,0 1 2

868

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 73

19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In m illions o f dollars)

To foreigners

To U.S.

Other
branches
of parent
bank

Total
Total

61,255
80,035

3,107
3,559

88,565
90,389
96,106
100,987
102,392
108,079
111,087
117,326
121,951

4,028
4,387
4,456
4,368
4,607
4,728
4.680
4,776
5,070

123,969
127,240
136,983
137,584

Parent
bank

662

1,000

Other

2,445 56,051
2,559 73,842

Other
banks

Offi­
N on­
cial
bank
for­
insti­
tutions eigners

Location and currency form

10,743 31,059
11,344 42,531

5,513
8,486

8,735
11,483

2,097
2,634

.1971—Dec.
.1972—Dec.

1.083
1,180
1,298
1.084
1,158

2,987
3,308
3,451
3,169
3,524
3,548
3,382
3,692
3,912

81,325
82,578
87,999
92,702
93,645
98,699
101,719
106,909
111,754

12.232
12,892
12,918
14,634
15.627
16,609
17.253
17,673
18.233

46,495
47,016
51,863
54,072
54,493
57,624
59,304
63,274
65,650

9,416
9,227
9,483
9,575
8,494
8,635
9,073
9,542
10,094

13,182
13,443
13,735
14,421
15,031
15,831
16,089
16,420
17,777

3,212
3,423
3.651
3,917
4,140
4.652
4,i
5,641
5,128

. 1973—Apr.
.............M ay 5
.............June 1
.............July
.............Aug.
.............Sept.
.............O ct.r
.............Nov.
.............Dec.

5,319
5,853
6,661
6,423

1,738
2,009
2,131
1,924

3,581
3,844
4,530
4,499

113,891
116,440
125,002
125,830

18,533
18.942
21,043
21,996

67.852
67,979
71,936
71,464

9,547 17,959
10,119 19,399
10,474 21,550
11,068 21,301

4,759
4,947
5,320
5,331

.1974—Jan.
.............Feb.
.............Mar.
.............Apr.

41,980
56,375

2,670
3,104

507

2,163 38,034
2,256 51,811

59,077
59,513
62,833
64,456
65,496
68,604
70,058
75,735
80,383

3,497
3,843
3,911
3,775
4,057
4,146
4,135
4,190
4,488

884
915

1,139
928
993

2,613
2,928
3,045
2,739
3,114
3,125
2,996
3,262
3,495

53,923
53,945
57,139
58,799
59,347
62,196
63,693
68,438
73,284

82,281
84,548
93,355
93,785

4,820
5,349
6,086
5 ,r'~

1,609
1,857
1,924
1,752

3,211
3,493
4,161
4,117

34,552
43,684

1,660
1,456

48,971
48,860
51,203
53,996
52,880
55,842
57,306
61,897
61,732

1,969
2,028
1,957
1,875
2,080
2,125
2,026
2,197
2,431

63,726
63,585
68,076
68,896

1,041
1,080
1,005

1,200

6,624 22,050
8,178 30,253

4,433
6,913

4,928
6,467

1,276
1,459

.1971—Dec.
. 1972—Dec.

8,251
8,418
8,376
9,219
10,237
10.627
11,312
11,825
12,571

30,902
31,104
34,403
35,153
35,458
37,260
37,622
41,598
43,702

7,623
7,259
7,247
7,005
6,165
6,242
6,337
6,290
7,327

7,146
7,164
7,114
7.421
7,487
8,067
8.422
8,724
9,684

1,657
1,725
1,783
1,882
2,092
2,263
2,230
3,107
2,611

.1973—Apr.
.............May
.............June:
.............July
.............Aug.
.............Sept.
.............Oct.
.............Nov.
.............Dec.

74,986
76,732
84,471
85,028

12,755
12.942
15,041
14,519

44,997
44.853
49,065
48,147

7,172
7,809
8,205
8,664

10,062
11,128
12,159
12,798

2,475
2,466
2,799

.1974—Jan.
.............Feb.
.............Mar.
............ Apr.

111

1,550 32,128
1,343 41,232

3,401
2,961

19,137
24,776

4,464
6,453

5,126
7,042

763
997

.1971—Dec.
.1972—Dec.

164
170
163
171
161
129
143
136

1,805
1,857
1,835
1,711
1,909
1,964
1,897
2,054
2,295

45,!
45,575
47,936
50,707
49,293
51,957
53,475
57,042
57,311

3,397
3,614
3,321
3,883
3,731
4,118
4,036
3,886
3,944

27,623
26,987
29,151
30,797
30,266
31,963
33,169
36,052
35,063

7,485 7,364
7,304 7,669
7,565 7,899
7,793
8,234
6,730 8,565
6,929 8,947
7,118 9,153
7,680 9,424
8,056 10,248

1,133
1,258
1,310
1,414
1,508
1,759
1,805
2,657
1,990

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

2,429
2,573
3,167
3,179

346
269
353
465

2,083
2,303
2,814
2,714

59,356
58,956
63,096
63,840

4,350
4,193
4,587
4,975

36,996
35,489
37,836
36,625

7,679 10,332
8,160 11,112
8,456 12,217
9,064 13,175

1,941
2,057
1,813
1,877

. 1974—Jan.
.............Feb.
.............Mar.
.............Apr.

24,845
30,933

1,412
1,276

23
72

1,389 23,059
1,203 29,121

2,164
2,008

14,038
17,478

3,676
5,349

3,181
4,287

374
536

.1971—Dec.
.1972—Dec.

32,950
32,051
33,491
33,803
32,960
34,886
35,342
39,527
39,658

1,735
1,809
1,731
1,661
1,846

119
138

6,221

1,831
1,940
2,173

40,979
40,930
45,579
46,305

2,346
2,927
2,935

1,866

2,200

866

1,036
943

1,021

113

122

2,!

148
148
137
103
119
113

1,616
1,671
1,629
1,513
1,698
1,729
1,727
1,821
2,060

30,684
29,635
31,185
31,549
30,433
32,213
32,781
36,032
36,646

2,318 17,599
2,225 16,906
2.234 18,318
2,316 18,639
2,213 18,566
2,245 19,836
2,515 20,155
2,468 23,059
2,519 22,135

5,877
5.971
5,855
4,995
5,110
4,934
4.971
5,839

4,546
4,626
4,663
4,738
4,660
5,022
5,177
5,534
6,152

532
607
575
593
681
807
730
1,555
839

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

329
243
329
441

1,871
2,103
2,598
2,494

37,884
37,579
41,708
42,379

2,846
2,729
3,063
3.234

5,806
6,342
6,694
7,225

6,262
7,044
7,650
8,612

895
1,006
945
992

. 1974—Jan.
.............Feb.
.............Mar.
.............Apr.

102

22,971
21,464
24,300
23,308

8,477
13,091

750

1,220

7,539
11,703

1,649
1,964

4,766
9,395

1,124
1,344

188
168

.1971—Dec.
. 1972—Dec.

13,039
14,090
15,613
16,466
19,341
20,673
20,698
21,504
23,771

1,126
1,320
1,458
1,339
1,521
1,608
1,663
1,559
1,517

11,537
12,440
13,829
14.803
17,410
18,464
18,463
19,363
21.803

1,672
1,944
2,272
2,691
3,917
4,321
4.591
4,744
5,526

8,224
8,980
10,170
10,484
11,691
12,255
11,902
12,857
14,453

1,642
1,516
1,387
1,628
1,803
1,887
1,969
1,762
1,824

375
330
326
323
409
601
572
582
451

. 1973—Apr.
.............May
.............June ;
.............July
.............Aug.
.............Sept.
.............Oct.
.............Nov.
.............Dec.

24,071
25,657
28,444
228,776

1,848
2,166
2,192

21,782
23,026
25,692
26,095

5,293
5,617
6.591
7,200

14,569
15,248
16,793
16,784

1,920
2,161
2,309

441
465
560
479

.1974—Jan.
.............Feb.
.............Mar.
............ Apr.

2,202

Digitized for For
FRASER
notes see p. A-76.


2,111

IN ALL FOREIGN COUNTRIES
. . .Total all currencies,

. Payable in U.S. dollars

IN UNITED KINGDOM
.. .Total, all currencies

.Payable in U.S. dollars

IN BAHAMAS A N D CAYMANS 1
. . .Total, all currencies

A 74

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974
2 1 . SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS

2 0 . DEPOSITS, U .S. TREAS. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT

(Amounts outstanding; in millions of dollars)

(In millions of dollars)
Payable in
Payable in dollars foreign currencies

Assets in custody
End of
period

Deposits

U.S. Treas.
securities1

Earmarked
gold

1971 .
1972.

294
325

43.195
50,934

13,815
215,530

1973—June.
July..
Aug..
Sept..
O ct...
Nov..
Dec...

334
280
259
250
426
420
251

57,545
57,054
55,855
55,407
54,766
52,998
52,070

15,486
15,464

1974—Ja n ...
Feb..
Mar..
Apr. .
M ay.
June..

392
542
366
517
429
384

49,582
50,255
51,342
52,642
54.195
54,442

End of
period

1 9 6 9 .......
1 9 7 0 .......

317,122
17,104
17,068

17,044
17,039
17,037
17.026

17,021

17,014

Short­
Short­
term Deposits term
Deposits invest­
invest­
ments 1
ments 1
161
150
203
127

183
173
234
234

86
121
120
68

663
372
577
580

534
443
587
443

1972—Dec. 2..

(1.965
(2,255

1,446
1,792

169
55

307
340

42
68

702
872

485
535

1973—Apr.. ..
May. ..
June. . ,
July. . .
Aug.. ..
Sept....
Oct.. . .
Nov... ,
Dec.r . .

3.047
3,194
3; 209
3.272
3.361
3,224
2:907
3.152
3,098

2,278
2,420
2,549
2.494
2:585
2.510
2; 244
2.517
2.518

118
130
74
136
82
78
66
64
37

416
433
453
475
486
476
449
435
430

234
211
134
167
209
161
148
136
113

1.044
1,010
1,064
1,070
1,068
1,088
992
1.044
1,053

887
1,011
882
959
940
891
881
922
775

1974—J a n .. . .
Feb.. . .

2,809
3,199
3,652
3.554

2,237
2,564
2,987
2.936

59
65
99
60

364
367
348
350

149
203
218
209

1,050
1,178
1,332
1.472

772
868
1,029
928

1 Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity of not more than 1 year from the date on which the
obligation was incurred by the foreigner.
2 Data on the two lines for this date differ because of changes in reporting coverage.
Figures on the first line are comparable in coverage with those shown for the preceding
date; figures on the second line are comparable with those shown for the following date.
N o t e .— Data represent the liquid assets abroad of large nonbanking concerns in
the United States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the United States and are included in the figures shown in
Table 22.

SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Amount outstanding; in millions of dollars)
Liabilities

Total

Payable
in
dollars

Claims

Payable
in
foreign
currencies

Total

Payable
in
dollars

Payable in 1foreign
currenc ies
Deposits with
banks abroad
in reporter’s
name

Other

1969—Dec......................

2,124

1,654

471

4,159

3,532

244

383

1970—June.....................
Sept......................
Dec......................

2,387
2,512
2,677

1,843
1,956
2,281

543
557
496

4,457
4,361
4,160

3,868
3,756
3,579

234
301
234

355
305
348

1971—Mar......................
June.....................
Sept......................
Dec.1................... /1

2,437
2,375
2,564
2,704
2,763

1,975
1,937
2,109
2,229
2,301

462
438
454
475
463

4,515
4,708
4,894
5,185
5,004

3,909
4,057
4,186
4,535
4,467

232
303
383
318
290

374
348
326
333
247

1972—Mar......................
June.....................
Sept......................
Dec.1................... /\

2,844
2,925
2,933
3,119
3,453

2,407
2,452
2,435
2,635
2,942

437
472
498
484
511

5,177
5,331
5,495
5,723
6,254

4,557
4,685
4,833
5,074
5,576

318
376
432
411
396

302
270
230
238
282

1973—Mar......................
June.....................
Sept......................
Dec.^J...................

3,392
3,373
3,720
4,167

2,871
2,795
3,001
3,391

522
579
720
777

7,092
7,329
7.742
8,510

6,191
6,468
6,791
7,576

464
503
535
487

437
358
416
447

1 Data on the two lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the




Canada

1.062
697
1,092
1,078

M a r .. . .
A p r .. . .

N o t e .—Excludes deposits and U.S. Treasury securities
held for international and regional organizations. Ear­
marked gold is gold held for foreign and international
accounts and is not included in the gold stock of the
United States.

End of period

United
King­
dom

1,491
1,141
(1,648
\ 1,507

1971—Dec. 2

15,455
15.437

1 Marketable U.S. Treasury bills, certificates of in­
debtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2 The value of earmarked gold increased because of the
change in par value of the U.S. dollar in May 1972.
3 The value of earmarked gold increased because of the
change in par value of the U.S. dollar in Oct. 1973.

22.

Total

preceding date; figures on the second line are comparable with those shown for the following date,

JULY 1974 o INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 75

23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(End of period. Amounts outstanding; in millions of dollars)
Liabilities to foreigners
Area and country

1973

1972
Dec.

Claims on foreigners

Mar.

June

1972
Sept.

Dec.p

1973
Mar.

Dec.

June

Sept.

Dec

p

Europe:
Austria....................................................
Belgium-Luxembourg...........................
Denmark................................................
Finland...................................................
France....................................................
Germany, Fed. Rep. of.........................
Greece....................................................
Italy........................................................
Netherlands............................................
Norway..................................................
Portugal..................................................
Spain......................................................
Sweden...................................................
Switzerland............................................
Turkey....................................................
United Kingdom...................................
Yugoslavia..............................................
Other Western Europe..........................
Eastern Europe......................................

2
83
7
4
167
157
15
121
109
14
4
81
13
111
4
1,063
7
2
3

3
75
8
4
161
147
19
107
102
14
5
82
23
134
3
901
16
2
6

2
81
19
4
165
182
24
103
113
13
4
72
25
88
3
747
17
3
22

2
129
18
7
165
193
33
108
115
10
12
79
32
147
6
833
22
3
24

3
131
9
7
168
229
35
116
134
9
13
77
47
108
14
928
28
3
31

19
73
29
25
228
195
35
202
84
16
19
157
57
82
48
1,184
12
12
42

14
121
26
21
288
245
36
204
101
18
19
159
45
87
23
1,426
14
9
40

17
109
20
21
315
273
40
201
96
19
25
140
49
90
14
1,402
18
9
92

15
112
21
31
275
265
52
201
119
21
24
169
53
64
17
1,491
21
12
73

17
105
46
44
303
283
51
240
118
18
50
245
70
100
33
1,488
49
15
104

Total................................................

1,967

1,812

1,687

1,938

2,090

2,519

2,897

2,951

3,035

3,380

Canada.......................................................

215

268

250

236

255

965

1,366

1,305

1,339

1,255

Neth. Antilles and Surinam.................
Other Latin America.............................

29
35
18
7
1
27
18
4
7
21
45
i 371
10
4

30
42
17
8
*
34
17
4
5
23
46
310
10
9

24
47
13
7
*
37
18
6
3
23
47
415
11
19

24
42
13
8
*
36
17
10
2
24
58
364
7
20

38
64
20
9
*
44
13
15
2
50
67
4t9
6
22

79
172
34
39
1
181
85
36
4
92
95
585
13
34

74
176
31
40
1
194
84
33
5
107
96
571
12
44

60
183
29
36
1
203
83
34
5
101
103
766
11
90

65
208
34
43
1
185
102
37
5
104
127
746
9
105

75
230
42
40
1
235
124
47
5
143
134
630
12
213

Total................................................

595

555

670

626

768

1,450

1,467

1,705

1,771

1,930

India........................................................
Indonesia................................................
Israel.......................................................
Japan......................................................
Korea......................................................
Philippines..............................................
Thailand.................................................
Other Asia..............................................

32
26
12
7
16
13
213
21
16
5
152

32
33
17
7
16
16
244
19
26
5
156

31
35
13
7
15
9
283
18
20
6
140

36
31
18
7
15
11
345
20
17
6
179

42
32
15
14
14
24
296
37
17
6
240

*
65
33
34
48
31
475
68
59
23
206

1
62
33
32
53
34
520
53
63
25
195

11
77
36
29
51
27
506
46
64
24
207

48
77
38
32
58
28
641
56
70
28
207

11
120
41
36
61
40
837
109
73
28
238

Latin America:
Argentina................................................
Brazil......................................................
Chile.......................................................
Colombia................................................
Cuba.......................................................
Mexico....................................................
Panama..................................................
Peru........................................................
Uruguay.................................... ............
Venezuela...............................................
Other L.A. republics.............................

Asia:
China, People’s Republic of (China

Total................................................

513

571

577

684

737

1,042

1,072

1,079

1,283

1,594

Africa:
Egypt......................................................
South Africa...........................................
Zaire........................................................
Other Africa...........................................

32
8
1
62

37
6
12
67

20
6
12
67

11
6
19
97

25
14
19
128

16
52
8
93

25
56
16
89

23
51
15
97

28
60
19
95

18
62
19
128

Total................................................

104

121

105

134

186

170

184

187

202

228

Other countries:
Australia.................................................
All other.................................................

45
14

54
11

72
11

94
9

118
13

83
23

81
24

75
26

90
22

97
25

59
*

65

83

103

131

107

105

101

111

122

International and regional........................

*

*

*

*

1

1

1

*

1

Grand total.....................................

3,453

3,392

3,373

3,720

4,167

6,254

7,092

7,329

7,742

8,510

Total................................................

i Includes Bermuda.
N o t e . —Reported by exporters, importers, and industrial and commercial 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 foreign affiliates,

A 76

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974

2 4 . LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
Claims
Country or area

Total
liabilities

End of period

Total

United
Kingdom

Other
Europe

Canada

Brazil

Mexico

Other
Latin
America

Japan

Other
Asia

Africa

All
other

1969—Dec........................

2,304

2,363

152

442

562

177

77

420

142

271

75

46

1970—Mar.......... . .
Ju n e .....................
Sept.............. .

2,358
2.587
2.785
3,102

2,744
2,757
2,885
2,950

159
161
157
146

735
712
720
708

573
580
620
669

181
177
180
183

74
65
63
60

458
477
586
618

158
166
144
140

288
288
284
292

71
76
73
71

47
54
58
64

1971

3,177
3.172
2,939
3,159
3,138

2,983
2,982
3,019
3,118
3,118

154
151
135
128
128

688
687
672
705
705

670
677
765
761
767

182
180
178
174
174

63
63
60
60
60

615
625
597
652
653

161
138
133
141
136

302
312
319
327
325

77
75
85
86
86

72
74
75
85
84

3,093
3,300
3,448
Dec.1. . . . . . . . . . . . / 3,540
1 3,866

3,191
3,255
3,235
3,370
3,493

129
108
128
163
187

713
713
695
715
758

787
797
805
833
868

175
188
177
184
187

60
61
63
60
64

665
671
661
659
703

137
161
132
156
134

359
377
389
406
399

81
86
89
87
82

85
93
96
109
111

4.045
4,030
4,253
4,115

3,635
3,708
3,860
3,962

151
174
211
284

816
823
840
794

882
893
894
972

165
146
147
145

63
65
73
80

796
819
827
820

124
138
152
141

413
416
475
471

101
104
104
112

125
131
137
144

Mar........................
Ju n e .. . . . . . . . . . . .
Sept................
Dec.1
.......... /\

1972—M ar.... . . . . . ---- June...............

1973—M a r ................... .
Ju n e .. . . . . . . . . . . .
S ept......................
Dec.p............ .

1 Data on the two lines shown for this date differ because of changes
shown for the preceding date; figures on the second line are comparable
in reporting coverage. Figures on the first line are comparable with those
with those shown for the following date.

OPEN MARKET RATES
(Per cent per annum)

United Kingdom

Canada
Month

Treasury Day-tobills,
day
3 months1 money2

Treasury
Prime
bank
bills,
bills,
3 months
3 months

France

Day-today
money

Clearing
banks’
deposit
rates

Germany,
Fed. Rep. of

Day-to- Treasury
bills,
day
money3
60-90
days4

Netherlands

Day-to- Treasury
bills,
day
money 5 3 months

Switzer­
land

Day-today
money

Private
discount
rate

1972. . .......... ........
1973.........

3.55
5.43

3.65
5.27

6.06
10.45

5.02
9.40

4.83
8.27

3.84
7.96

4.95
8.92

3.04
6.40

4.30
10.18

2.15
4.07

1.97
4.94

4.81
5.09

1973—June. . . . . . .
July............
Aug.. . . . . . .
Sept... . . . . .
O ct.. . . . . . .
Nov.. . . . . . .
D ec.............

5.40
5.67
6.47
6.41
6.56
6.48
6.39

5.00
5.28
5.87
6.31
6.54
6.56
6.58

8.14
9.06
12.78
12.12
11.37
13.38
13.74

7.12
8.35
10.98
11.37
10.75
11.76
12.41

6.66
5.89
9.70
9.13
10.53
8.80
9.57

6.55
6.25
8.99
9.50
9.50
9.50
9.46

7.46
7.89
8.87
9.73
10.99
10.96
11.14

7.00
7.00
7.00
7.00
7.00
7.00
7.00

10.90
15.78
10.63
9.76
10.57
11.30
11.89

3.59
5.58
5.92
5.67
5.25
5.29
6.41

4.28
5.65
7.24
7.97
7.93
7.88
8.75

5.00
5.00
5.00
5.25
5.25
5.25
5.40

1974—Jan..............
Feb.............
Mar.............
A p r ...........
M ay
..

6.31
6.10
6.24
7.18
8.22
8.66

6.50
6.49
6.50
6.93
7.48
8.36

13.67
13.63
14.39
13.20
13.31
12.61

12.09
11.94
11.95
11.53
11.36
11.23

10.36
8.96
11.31
10.00
10.72
10.58

9.25
9.50
9.50
9.50
9. 50
9.50

13.63
12.48
11.88

7.00
7.00
7.00
5.63

10.40
9.13
11.63
5.33
8.36

6.50
6.50
6.00
6.64
7.00

9.36
9.73
9.07
9.86
9.00

6.00
6.00
6.00
6.50
6.50
6. 50

1 Based on average yield of weekly tenders during month.
2 Based on weekly averages of daily closing rates.
3 Rate shown is on private securities.
4 Rate in effect at end of month.

5 Monthly averages based on daily quotations.
N ote.—For description and back data, see “International Finance,”
Section 15 of Supplement to Banking and Monetary Statistics, 1962.

NOTES TO TABLES 19A AND 19B ON PAGES A-72 AND A73 RESPECTIVELY:
1 Cayman Islands included beginning Aug. 1973.
2 Total assets and total liabilities payable in U.S. dollars amounted to
$26,646 million and $26,941 million, respectively, on Apr. 30, 1974.
N ote

—Components may not add to totals due to rounding.




For a given month, total assets may not equal total liabilities because
some branches do not adjust the parent’s equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.

JULY 1974 □ CENTRAL BANK AND EXCHANGE RATES

A 77

CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Rate as o f June 30, 1974
Country
Per
cent

Rate as o f June 30, 1974
Country

Month
effective

Month
effective

Per
cent

Argentina.
Austria__
Belgium. ..
Brazil........
Canada—

18.0
6.50
8.75
18.0
8.25

Feb.
May
Feb.
Feb.
Apr.

1972
1974
1974
1972
1974

Italy...................
Japan.................
Mexico...............
Netherlands.......
Norway..............

9.0
9.0
4.5
8.0
5.5

Mar.
Dec.
June
Dec.
Mar.

1974
1973
1942
1973
1974

Denmark.........................
France.............................
Germany, Fed. Rep. of.
Israel................................

10.0
13.0
7.0

Jan. 1974
June 1974
June 1973

Sweden..............
Switzerland........
United Kingdom
Venezuela..........

6.0
5.5
11.75
5.0

Apr.
Jan.
May
Oct.

1974
1974
1974
1970

N o t e .—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
govt, securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts
the largest proportion of its credit operations. Other rates for some of
these countries follow:
Argentina—3 and 5 per cent for certain rural and industrial paper, de­
pending on type of transaction;
Brazil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;

Japan—Penalty rates (exceeding the basic rate shown) for borrowings

from the central bank in excess of an individual bank’s quota;
t United Kingdom —The Bank’s minimum lending rate, which is the
average rate of discount for Treasury bills established at the most recent
tender plus one-half per cent rounded to the nearest one quarter per cent
above.
Venezuela—2 per cent for rediscounts of certain agricultural paper, 4Vi
per cent for advances against government bonds, and 5 l/ i per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.

FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Australia
(dollar)

Austria
(schilling)

Belgium
(franc)

1970.....................
1971.....................
1972.....................
1973.....................

111.36
113.61
119.23
141.94

3.8659
4.0009
4.3228
5.1649

2.0139
2.0598
2.2716
2.5761

95.802
99.021
100.937
99.977

13.334
13.508
14.384
16.603

18.087
18.148
19.825
22.536

27.424
28.768
31.364
37.758

13.233
13.338
13.246
12.071

239.59
244.42
250.08
245.10

.15945
.16174
.17132
.17192

.27921
.28779
.32995
.36915

1973—June.........
July.........
Aug..........
Sept..........
Oct...........
Nov..........
Dec..........

141.58
141.78
141.48
146.83
148.22
148.22
148.33

5.2408
5.8124
5.5917
5.5695
5.5871
5.2670
5.1150

2.6643
2.8151
2.7035
2.7089
2.7328
2.5882
2.4726

100.160
100.049
99.605
99.181
99.891
100.092
100.058

17.130
18.041
17.521
17.480
17.692
16.744
16.089

23.472
24.655
23.527
23.466
23.718
22.687
21.757

38.786
42.821
41.219
41.246
41.428
38.764
37.629

13.753
13.605
13.220
12.987
12.938
12.767
12.328

257.62
253.75
247.57
241.83
242.92
238.70
231.74

.16792
.17200
.17423
.17691
.17656
.16904
.16458

.37808
.37801
.37704
.37668
.37547
.35941
.35692

1974—Jan...........
Feb...........
Mar..........
Apr...........
May.........
June.........

148.23
148.50
148.55
148.41
148.44
148.34

4.8318
5.0022
5.1605
5.3345
5.5655
5.5085

2.3329
2.4358
2.5040
2.5686
2.6559
2.6366

100.859
102.398
102.877
103.356
103.916
103.481

14.981
15.570
16.031
16.496
17.012
16.754

19.905
20.187
20.742
20.541
20.540
20.408

35.529
36.844
38.211
39.594
40.635
39.603

11.854
12.131
12.415
12.711
12.841
12.735

222.40
227.49
234.06
238.86
241.37
239.02

.15433
.15275
.15687
.15720
.15808
.15379

.33559
.34367
.35454
.36001
.35847
.35340

Nether­
lands
(guilder)

New
Zealand
(dollar)

Norway
(krone)

Portugal
(escudo)

Spain
(peseta)

Sweden
(krona)

Switzer­
land
(franc)

United
Kingdom
(pound)

Period

Period

Malaysia
(dollar)

Mexico
(peso)

Canada
(dollar)

Denmark
(krone)

France
(franc)

Germany
(Deutsche
mark)

South
Africa
(rand)

India
(rupee)

Ireland
(pound)

Italy
(lira)

Japan
(yen)

1970.....................
1971.....................
1972.....................
1973.....................

32.396
32.989
35.610
40.988

8.0056
8.0056
8.0000
8.0000

27.651
28.650
31.153
35.977

111.48
113.71
119.35
136.04

13.992
14.205
15.180
17.406

3.4978
3.5456
3.7023
4.1080

139.24
140.29
129.43
143.88

1.4280
1.4383
1.5559
1.7178

19.282
19.592
21.022
22.970

23.199
24.325
26.193
31.700

239.59
244.42
250.08
245.10

1973—June.........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec...........

40.865
43.121
43.859
43.361
43.641
41.838
41.405

8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000

36.582
38.700
37.596
38.542
40.011
37.267
35.615

132.40
135.02
135.33
145.07
148.64
147.74
144.34

18.192
18.932
18.145
18.048
18.285
17.872
17.651

4.2175
4.4624
4.3243
4.2784
4.3014
4.1155
3.9500

148.07
148.63
148.52
148.50
148.54
148.45
148.66

1.7229
1.7385
1.7553
1.7610
1.7576
1.7479
1.7571

23.746
24.732
24.070
23.769
23.942
23.019
22.026

32.757
35.428
33.656
33.146
33.019
31.604
31.252

257.62
253.75
247.57
241.83
242.92
238.70
231.74

1974—Jan...........
Feb...........
M ar..........
Apr..........
May.........
June.........

40.094
40.489
41.152
41.959
42.155
41.586

8.0000
8.0000
8.0000
8.0000
8.0000
8.0000

34.009
35.349
36.354
37.416
38.509
37.757

139.08
140.31
143.40
145.12
146.07
145.29

16.739
17.351
17.734
18.170
18.771
18.410

3.7195
3.8567
3.9519
4.0232
4.1036
4.0160

148.66
148.76
148.88
148.85
148.78
148.86

1.7205
1.6933
1.6927
1.7080
1.7409
1.7450

20.781
21.373
21.915
22.730
23.388
22.885

29.727
31.494
32.490
33.044
34.288
33.449

222.40
227.49
234.06
238.86
241.37
239.02

N o t e .—Averages of certified noon buying rates in New York for cable
transfers. For description of rates and back data, see “International Fi­
nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962.




A 78

GOLD RESERVES □ JULY 1974
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
End of
period

Esti­
mated
total
world1

Intl.
Mone­
tary
Fund

United
States

Esti­
mated
rest of
world

Algeria

Argen­
tina

41,275
41,160
44,890

4,339
4,732
5,830

11,072
10,206
10,487

25,865
26,220
28,575

191
192
208

140
90
152

239
259
281

714
729
792

1,470
1,544
1,638

791
792
834

82
80
87

64
64
69

85
85
92

5,826
5,831
5,826
5,826
5,826
6,474
6,476
6,478

10,487
10,487
10,487
10,487
10,487
11,652
11,652
11,652

31,720

208
208
208
208
208
231
231
231

152
152
152
152
152
169
169
169

281
281
281
281
282
312
212
311

793
793
793
793
793
881
881
881

1,603
1,603
1,603
1,603
1,603
1,781
1,781
1,781

834
834
834
834
834
927
927
927

87
87
87
87
87
97
97
97

69
69
69
69
69
77
77
77

92
92
92
92
92
103
103
103

11,652
11,652
11,652 *31,725
11,652
11,652

231
231
231
231
231

169
169
169

312
312
312
313
312

882
882
882
882
882

1,781
1,781
1,781
1,781
1,781

927
927
927
927
927

97
97
97
97

77
77
77
77
77

103
103
103

Japan

Kuwait

Libya

Mexi­
co

Nether­
lands

1970..........................
1971..........................
1972..........................
1973—M ay..............
June..............
July...............
Aug...............
Sept...............
Oct.................
Nov...............
Dec................

44,865
44,880
49,850

1974—Jan.................
Feb................
Mar...............
Apr................
May*............

*49,855

6,478
6,478
6,478
6,478
6,478

End of
period

France

Ger­
many,
Fed.
Rep. of

Greece

28,545
28,565

India

Iran

Iraq

Aus­
tralia

Italy

Aus­
tria

Bel­
gium

Canada

Leb­
anon

China,
Rep. of
(Taiwan)

Den­
mark

Egypt

1970..........................
1971..........................
1972..........................

3,532
3,523
3,826

3,980
4,077
4,459

117
98
133

243
243
264

131
131
142

144
144
156

2,887
2,884
3,130

532
679
801

86
87
94

288
322
350

85
85
93

176
184
188

1,787
1,909
2.059

1973—M ay..............
June..............
July...............
Aug................
Sept...............
Oct.................
Nov...............
Dec................

3,834
3,841
3.835
3.835
3,835
4.261
4.261
4.261

4.469
4,462
4.469
4.469
4.469
4.966
4.966
4.966

133
133
133
133
133
148
148
148

264
264
264
264
264
293
293
293

142
142
142
142
142
r 159
r\ 59
'•159

156
156
156
156
156
173
173
173

3.134
3.134
3,134
3,134
3,134
3,483
3,483
3,483

802
802
802
802
802
891
891
891

109
102
102
102
94
115
105
120

350
350
350
350
350
388
388
r388

93
93
93
93
93
103
103
103

188
186
184
182
179
198
198
196

2.059
2.063
2.063
2.065
2.065
2.294
2.294
2.294

1974—Jan.................
Feb................
Mar...............
Apr................
Mav*............

4.262
4.262
4.262
4.262
4.262

4.966
4.966
4.966
4.966
4.966

148
148
149
149
149

293

M59
r159
r159
159
159

173
173
173
173
173

3,483
3,483
3.483
3.483
3,483

891
891
891
891
891

113
120
123
118

389
r391
387
387

103
103
103
103
103

195
194

2.294
2.294
2.294
2.294
2.294

Portu­
gal

Saudi
Arabia

South
Africa

Spain

Thai­
land

Turkey

United
King­
dom

End of
period

Paki­
stan

Sweden Switzer­
land

Uru­
guay

Vene­
zuela

Bank
for Intl.
Settle­
ments 2

1970..........................
1971..........................
1972..........................

54
55
60

902
921
1,021

119
108
117

666
410
681

498
398
541

200
200
217

2,732
2,909
3,158

92
82
89

126
130
136

1,349
775
800

162
148
133

384
391
425

-2 8 2
310
218

1973—M ay..............
June..............
July...............
Aug................
Sept...............
Oct.................
Nov...............
Dec................

60
60
60
60
60
67
67
67

1,022
1,022
1,022
1.035
1.036
1,154
1,159
1,163

117
117
117
117
116
129
129
129

721
724
734
740
738
820
809
802

542
542
542
542
542
602
602
602

220
220
220
220
220
244
244
244

3.162
3.162
3.162
3.162
3,162
3,512
3.513
3.513

89
89
89
89
89
99
99
99

136
136
136
136
136
151
151
151

810
810
810
797
797
886
886
886

133
133
133
133
133
148
148
148

425
425
425
425
425
472
472
472

199
205
204
205
213
227
237
235

1974—Jan
F e b .............
M a r .............

67
67
67

1,167
1,171
1,176
1,180

129
129
129
129
129

793
783
780
780
777

602
602
602
602

244
244
244
244
244

3.513
3.513
3.513
3.513
3.513

99
99
99
99
99

151
151
151
151

148
148
148

472
472
472
472
472

271
277
274
271
247

May*

1 Includes reported or estimated gold holdings of international and
regional organizations, central banks and govts, of countries listed in
this table, and also of a number not shown separately here, and gold to be
distributed by the Tripartite Commission for the Restitution of Monetary
Gold; excludes holdings of the U.S.S.R., other Eastern European coun­
tries, and China Mainland.
The figures included for the Bank for International Settlements are
the Bank’s gold assets net of gold deposit liabilities. This procedure
avoids the overstatement of total world gold reserves since most of the




gold deposited with the BIS is included in the gold reserves of individual
countries.
2 Net gold assets of BIS, i.e., gold in bars and coins and other gold
assets minus gold deposit liabilities.
N o t e .— For back figures and description of the data in this and the
following tables on gold (except production), see “Gold,” Section 14 of
Supplement to Banking and Monetary Statistics , 1962.

JULY 1974 □ BUSINESS FINANCE

A 79

SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS
(In millions of dollars)

Industry

1970

1971

1972

1972

1973
I

Total (170 corps.):
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1.......
Nondurable goods industries
(86 corps.):2

Memo: PAT unadj.1........
Durable goods industries (84
corps.):3
Total revenue.......................
Profits before taxes..............
Dividends.............................
Selected industries:
Food and kindred prod.
(28 corps.):

II

1973
III

IV

I

II

III

IV

305,370 334,957 371,946 442,254
309,532 339,134 376,604 448,795
29,266 35,771 41,164 53,833
16,556 19,146 21,753 28,772
16,436 18,020 21,233 28,804
10,024 10,104 10,538 11,513

88,349
89,452
9,715
5,212
5,162
2,538

93,853
95,271
10,467
5,674
5,687
2,598

89,550 100,194 102,932 109,967 r 108,370 120,985
90,803 101,078 104,139 111,526 r 109,984 123,108
8,978 12,003 12,695 14,009 M2,411 14,742
4,936
5,931
7,491
6,801
r6,762
7,750
4,490
5,894
6,754
7,385
r6,732
7,930
2,877
2,646
2,525
2,715
2,767
3,393

147,808 160,973 176,329 210,118
150,312 163,448 178,915 213,904
16,935 19,900 21,799 30,200
9,649 10,490 11,154 15,538
9,591
10,085 10,859 15,421
5,664
6,103
5,560
5,780

42,254
42,930
5,043
2,673
2,625
1,447

43.395
44,273
4,998
2,682
2,625
1,430

43,865
44,689
5,278
2,852
2,574
1,427

46,815
47,023
6,479
2,946
3,035
1,476

47,519
48,259
6,487
3,411
3,348
1,487

50,223 53,168
51,191 r54,098
7,129
r7,610
3,667
r4,018
3,597
r3,957
1,462
1,527

59,207
60,357
8,988
4,463
4,517
1,633

157,562 173,985 195,618 232,136
159,220 175,686 197,690 234,891
12,332 15,871 19,365 23,633
6,908
8,656 10,599 13,234
6,845
7,935 10,374 13,383
4,758
4,464
5,410
4,440

46,095
46,522
4,673
2,539
2,537
1,091

50,458
50,999
5,469
2,992
3,062
1,168

45,685
46,115
3,697
2,083
1,916
1,097

53,379
54,055
5,524
2,984
2,859
1,401

55,413
55,880
6,208
3,390
3,406
1,159

59,744 r55,202
60,335 55,886
6,880 '4,801
3,824
2,744
3,788
2,775
1,253
1,240

61,778
62,751
5,754
3,287
3,413
1,760

31,966
32,393
3,122
1,571
1,540
812

34,584
35,090
3,372
1,714
1,644
862

37,624
38,091
3,573
1,845
1,805
893

42,628
43,198
3,957
2,063
2,074
935

8,824
8,941
794
414
408
221

9,229
9,371
880
454
452
222

9,531
9,665
940
486
492
223

10,039
10,115
960
490
452
227

9,561
9,711
890
470
453
237

10,183
10,348
962
499
501
230

11,014
11,201
'■1,031
r546
r546
236

11,871
11,938
1,067
543
573
240

31,086
31,490
3,863
2,111
2,137
1,298

33,005
33,388
4,123
2,290
2,167
1,332

36,638
37,053
4,853
2,672
2,671
1,395

43,208
43,784
6,266
3,504
3,469
1,496

8,779
8,868
1,172
652
649
337

9,167
9,265
1,184
667
626
341

9,099
9,196
1,216
683
684
340

9,593
9,723
1,280
669
712
378

10,153
10,264
1,487
838
834
346

10,693
10,849
1,606
886
884
359

10,828
10,968
1,599
901
871
374

11,534
11,704
1,572
883
880
417

61,360
62,826
8,509
5,158
5,131
2,917

68,534
69,903
10,835
5,624
5,519
2,952

74,662
76,133
11,461
5,562
5,325
2,992

93,505
95,722
17,494
8,550
8,505
3,147

18,269
18,695
2,684
1,384
1,356
763

18,169
18,756
2,433
1,270
1,273
742

18,298
18,837
2,628
1,398
1,119
741

19,925
19,845
3,717
1,509
1,578
746

20,477
20,892
3,514
1,760
1,737
777

21,689
22,258
3,884
1,899
1,888
748

23,586
23,988
4,371
2,230
2,192
789

27,752
28,584
5,724
2,662
2,688
832

30,769
31,288
2,072
1,316
1,371
913

31,441
31,808
1,517
969
561
739

34,359
34,797
1,969
1,195
1,109
653

42,400
43,104
3,221
1,966
2,039
789

7,848
7,931
386
247
260
162

8,886
8,984
581
372
465
161

8,525
8,629
413
274
128
162

9,099
9,253
589
302
256
168

9,635
9,733
618
383
397
200

10,784
10,891
885
542
538
178

10,602
10,764
r799
480
496
184

11,379
11,715
919
561
608
227

Memo: PAT unadj.1.......
Dividends.............................

46,486
47,028
4,885
2,566
2,477
1,327

49,206
49,846
5,277
2,884
2,560
1,450

55,615
56,348
6,358
3,522
3,388
1,497

65,041
65,925
7,669
4,236
4,208
1,606

12,939
13,102
1,416
781
774
373

13,796
13,993
1,550
854
848
374

13,862
14,050
1,583
870
865
375

15,018
15,203
1,810
1,017
902
375

14,828
14,997
1,705
933
931
389

16,035
16,241
1,880
1,034
1,020
401

16,306
16,519
1,936
1,069
1,070
407

17,871
18,168
2,149
1,200
1,188
410

Motor vehicles and equipment
(9 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1.......
Dividends.............................

48.905
49,108
2,153
1,306
1,301
1,434

61,481
61,804
5,648
2,948
2,952
1.433

70,653
71,139
6.955
3; 626
3,640
1,762

83,016
83,671
7,429
3,992
4,078
2,063

17,273
17,353
2,017
1,037
1,034
359

18,953
19,105
2,290
1,186
1.178
'439

14,703
14,735
628
343
337
365

19,725
19,946
2,019
1,060
1,091
599

21,616
21,710
2,716
1,405
1,429
369

22,256
22,415
2,704
1,446
1,436
473

*•17,959
18,142
729
431
450
404

21,186
21,362
1,280
709
763
817

Memo: PAT unadj.1........
Chemical and allied prod. (22
corps.):
Profits before taxes..............
Memo: PAT unadj.1.......
Petroleum refining (15 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Memo: PAT unadj.1.......
Primary metals and prod.
(23 corps.):
Total revenue.......................
Memo: PAT unadj.1.......
Dividends.............................
Machinery (27 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............

1 Profits after taxes (PAT) as reported by the individual companies. In
contrast to other profits data in the series, these figures reflect company
variations in accounting treatment of special charges and credits.
2 Includes 21 corporations in groups not shown separately.
3 Includes 25 corporations in groups not shown separately.
N ote—Data are obtained from published reports of companies and
reports made to the Securities and Exchange Commission. Sales are net




of returns, allowances, and discounts, and exclude excise taxes paid di­
rectly by the company. Total revenue data include, in addition to sales,
income from nonmanufacturing operations and nonoperating income.
Profits are before dividend payments and have been adjusted to exclude
special charges and credits to surplus reserves and extraordinary items not
related primarily to the current reporting period. Income taxes, (not
shown) include Federal, State and local government, and foreign.
Previous series last published in June 1972 B u l l e t in , p. A-50.

A 80

COMMERCIAL BANKS □ JULY 1974
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions o f dollars)

Deposits
Total
assets—
Total
Interbank3
Other
Securities
Cash
lia­
assets3 bilities
Total3
Demand
and
Loans1
De­
capital
U.S.
mand Time
ac­
Treas­ Other2
U.S.
ury
counts4
Govt. Other

Loans and investments

Class of bank
and date

All commercial banks:
1967—Dec. 30.......
1968—Dec. 31.......
1969—Dec. 316....
1970—Dec. 31.......
1971—Dec. 31.......
1972—Dec. 31.......

Total

77,928
83,752
89,984
93,643
99,832
113,128

52,360
52,780
53,330
53,750
54,240
55,740
54,920
55,350
55,620
56,510
56,730
58,128

13,939
13,952
13,974
13,998
14,018
14,046
14,069
14,083
14,102
14,134
14,163
14,171

151,980
163,920
169,750
168,032
174,385
197,817

147,442
162,605
149,569
179,229
209,406
239,763

5,370
8,458
17,395
18,578
25,046
36,357

28.098
30,060
32,047
34,100
37,279
41,228

6,071
5,978
5,869
5,766
5,727
5.704

677 241,788
525 248,032
540 254,650
671 256,561
766 261,586
439 261,975
351 265,401
082 272,607
016 272,557
324 271,931
931 270,295
564 275.374

40,256
42,912
42,642
43,076
44,214
46,529
48,761
49,283
52,485
56,772
58,865
55,611

40,994
41,276
41,533
41.806
42,096
43.098
42,539
42.807
42,972
43,618
43,759
44,741

5,690
5,688
5,683
5,695
5,703
5.705
5.706
5,712
5,717
5,722
5.735
5.735

20,811
23,519
25,841
29.142
30,612
31,958

1,169
1,061
609
1,733
2,549
3,561

4,631
4,309
4,114
6.460
8,427
9,024

071 458,943
322 465,495
564 462,997
412 468,385
722 473,623
414 486,770
;607 478,417
202 478,273
359 486,975
,710 499,110
258 491,405
698 526,837

27,757
28,037
24,505
24,744
26,139
29,311
27,121
24,972
26,182
31.142
28,522
34,782

3,260
3,537
3,895
4,242
4,621
4,879
5,121
5,911
6,480
6,112
6,298
5,843

8.461
9,364
9,407
9.167
4,511
8.167
5,423
2,701
6,740
4,601
3,359
8,273

60,407
63,900
62,381
67,186
71,723
82,446

7,238
8,964
10,349
12,508
13,825
15,094

741
622
268
956
1,186
1,833

1,084
888
694
1,039
1,513
1,418

31,282
33,351
36,126
32,235
30,943
35,373

20,062
20,076
14,944
20,448
24,256
28,728

1,880
2,733
4,405
4,500
5,195
9,502

5,715
6.137
6,301
6,486
7,285
8,042

12
12
12
12
12
13

77,213
79,567
77,435
77,295
77,980
82,718
81,473
78,925
82,016
87,935
84,824
90,237

13,919
14,040
11,744
11,935
11,780
15,340
13,787
12,092
13,069
16,713
14,864
16,746

1,574
1,708
1,951
2,229
2,491
2,773
2,969
3,558
4,019
3,807
4,087
3,619

1,257
1,506
1,789
1,732
521
1,115
769
310
1,073
642
373
1,689

31,292
30,533
29,032
29,068
30,035
30,607
30,164
28,185
29,656
32,901
31,776
23,226

29,171
31.780
32,919
32,331
33,153
32,883
33,784
34.780
34,199
33,872
33,724
33,957

10,142
10,321
9,938
9,891
10,496
11,597
12,857
12,368
13,729
15,170
14,882
13,486

8,074
8,142
8,047
8,093
8.137
8,287

13
13
13
13
13
13
13
13
13
13
13
13

46,956
47,881
39,833
45,399
47,633
48,715

49,315
56,920
54,785
66,604
79,738
87,524

68,946
73,756
79,034
81,500
86,189
96,566

31___
28___
28___
25___
30___
30___
25----2 9 ....
2 6 ....
3 1 ....
2 8 ....
31. . .

458,760
465,024
470,997
476.739
480,394
490,533
489,240
494,200
498,322
504.120
507,176
528.124

324,637
334,601
340,665
346.865
351,223
360,908
360,813
365,951
368,842
371.866
374,148
391,032

47,333
43,698
43,259
42,517
41,030
41,080
39,331
38,233
38,372
39,375
40,752
41,494

86,790
86,725
87,073
87,357
88,141
88,545
89,096
90,016
91,108
92,879
92,276
9 d, 598

82,499
85,364
77,719
78,219
81,169
88,227
82,091
78,475
85,802
96,251
89,652
100,098

Large member banks:
New York City:7*8
1967—Dec. 3 0 ....
1968—Dec. 3 1 ....
1969—Dec. 316...
1970—Dec. 3 1 ....
1971—Dec. 3 1 ....
1972—Dec. 3 1 ....

52,141
57,047
60,333
62,347
63,342
75,034

39,059
42,968
48,305
47,161
48,714
58,713

6,027 7,055
5,984 8,094
5,048 6,980
6,009 9,177
5,597 9,031
5,696 10,625

18,797
19,948
22,349
21,715
22,663
26,416

74,609
81,364
87,753
89,384
91,461
107,603

73,744
75,727
76,368
76,834
78,078
79,212
79,869
80.338
81,900
83.338
84,529
87,643

58,304
61,629
62,584
63,395
64,505
65,428
66,117
66,610
67,694
68,229
69,048
70,571

5,439
4,463
4,498
4,254
4,424
4,661
4,047
4,095
4,075
4,828
5,035
5,516

23,203
23,059
20,133
19,710
19,587
24,518
23,544
20,095
22,531
28,643
24,917
25,170

102,923
105,571
103,402
103,622
104,550
111,028
110,392
108,141
111,675
119,283
116,040
119,984




42,700
45,480
45,420
45,830
47.360
49,299
52,610
53,220
56,280
60,620
62,870
58,994

326,033
355,414
349,883
384,596
425,380
482,124

196,849
220,285
242,119
253,936
277,717
329,548

For notes see p. A-82

228, 040 318.260
190 326.260
290 334,520
170 337,390
050 344,040
953 345,191
228! 470 349,440
224 770 358,170
228 420 358,820
241 130 359,570
238 540 358,710
263 367 365,002

10,400
11,370
11,390
10,910
5,810
10,434
6,750
3,460
8,210
5,680
4,350
9,865

293.120
325.086
336.738
365,940
405.087
465,788

10,001
9,635
9,286
9,185
9,149
9,124
9,705
9,633
10,131
10,281
10,446
11,556

13,722
13,679
13,661
13,686
13,783
13,927

3,890
4,170
4,530
4,880
5,250
5,590
5,830
6,620
7,190
6,820
7,010
6,773

490
850
740
560
890
099
660
320
790
040
500
,574

3 1 ....
2 8 ....
2 8 ....
2 5 ....
30__
3 0 ....
2 5 ....
29__
2 6 ....
3 1 ....
2 8 ....
3 1 ...

34,384
37,006
39,978
42,958
47,211
52,658

29,260
29,530
25,960
26,220
27,770
31,047
28,710
26,500
27,720
32,830
30,130
36,839

65,560
61,620
61,180
60,400
58,330
57,877
56,450
54,910
55,080
56,010
57,770
58,277

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

5,777
8,899
18.360
19,375
25,912
38,083

680 589,850
670 598.520
,250 596,690
,740 604,570
,470 611,920
908 629,215
,410 619,200
,300 619.520
,730 630.360
,760 646,030
180 638,740
224 681,847

591,270 409,220
599,970 421,500
608,320 429,400
616,480 437,520
622,340 444,120
635,756 456,780
634,730 456,620
641,140 462,910
646,710 466,840
654,390 471,340
659,280 475,010
683,799 494,947

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

182,511
203,154
193,744
231,084
272,289
314,891

Time5

1,314 5,234 184,066
1,211 5,010 199,901
735 5,054 208,870
1,975 7,938 209,335
2,908 10,169 220,375
4,194 10,875 252,223

61.477
71,537
71,341
86,118
104,704
117,084

Members of F.R. System
1967—Dec. 30___
1968—Dec. 3 1 ....
1969—Dec. 316...
1970—Dec. 31___
1971—Dec. 3 1 ....
1972—Dec. 3 1 ....

Num­
ber
of
banks

21,883
24,747
27,174
30,608
32,205
33,854

62,473
64,466
54,709
61,742
64,930
67,028

31.......
28.......
28.......
25.......
30.......
30.......
25.......
29___
26___
31.......
28.......
31___

Total
capital
ac­
counts

395,008
434,023
435,577
480,940
537,946
616,037

451,012
500,657
530,665
576,242
640,255
739,033

235,954
265,259
295,547
313,334
346,930
414,696

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

359,903
401,262
421,597
461,194
516,564
598,808

Bor­
row­
ings

373,584
412,541
432,270
465,644
511,353
585,125

221,
220
225
229
236

8 ,2 1 2
8 ,2 2 0

8,231
8,413
8,491
8,607

JULY 1974 o COMMERCIAL BANKS

A 81

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK-Continued
(Amounts in millions of dollars)
Loans and investments

Class of bank
and date

Total

Deposits
Total
assets—
Total
Interbank 3
Other
Securities
Cash
lia­
assets3 bilities
Total 3
Loans1
and
Demand
De­
U.S.
capital
ac­
mand Time
Treas­ Other2
ury
counts4
U.S.
Govt. Other

Bor­
row­
ings

Total
capital
ac­
counts

Num­
ber
of
banks

Time 5

Large member
banks (cont.):
City of Chicago:7,8
1967—Dec. 30.......
1968—Dec. 31.......
1969—Dec. 316... .
1970—Dec. 31.......
1971—Dec. 31.......
1972—Dec. 31.......

12,744
14,274
14,365
15,745
17,133
21,362

9,223
10,286
10,771
11,214
12,285
16,294

1,574
1,863
1,564
2,105
1,782
1,873

1,947
2,125
2,030
2,427
3,067
3,195

2,947
3,008
2,802
3,074
3,011
3,580

16,296
18,099
17,927
19,892
21,214
26,009

13,985
14,526
13,264
15,041
16,651
19,851

1,434
1,535
1,677
1,930
1,693
1,615

21
21
15
49
168
160

267
257
175
282
364
509

6,250 6,013
6,542 6,171
6,770 4,626
6,663 6,117
6,896 7,530
7,387 10,179

383
682
1,290
1,851
1,935
3,008

1,346
1,433
1,517
1,586
1,682
1,891

10
9
9
9
9
9

31.......
28.......
28.......
25.......
30.......
30.......
25.......
29.......
26.......
31
28
31___

21,026
21,983
22,660
22,800
23,777
24,566
25,221
25,400
25,948
25,489
26,278
27,195

16,371
17,544
17,980
18,253
18,956
19,645
20,580
20,676
20,717
20,022
21,117
21,649

1,562
1,384
1,470
1,414
1,564
1,715
1,364
1,322
1,683
1,621
1,504
1,685

3,093
3,055
3,210
3,133
3,257
3,205
3,277
3,402
3,548
3,846
3,657
3,861

2,939
3,513
3,092
3,277
3,209
3,501
3,759
3,569
3,853
4,146
3,794
3,848

25,035
26,575
26,821
27,170
28,134
29,307
30,199
30,358
31,299
31,015
31,441
32,542

18,709
19,429
19,854
20,020
21,088
21,896
21,627
22,272
22,138
21,837
21,577
24,235

1,364
1,433
1,326
1,304
1,501
1,323
1,638
1,355
1,525
1,481
1,505
1,696

247
224
266
333
411
392
389
499
504
517
459
j 77

358
442
461
426
154
299
226
86
303
194
115
434

6,605
6,778
6,439
6,639
6,882
7,372
6,488
6,725
6,480
6,863
6,942
8,015

3,276
4,075
3,910
3,971
3,954
4,146
4,922
4,647
5,814
5,895
6,314
4,818

1,895
1,891
1,878
1,899
1,910
1,947
1,928
1,941
1,946
2,033
1,973
1,989

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

Other large member:7•8
1967—Dec. 30
1968—Dec. 31
1969—Dec. 316... .
1970—Dec. 31
1971—Dec. 31, ,
1972—Dec. 31

105,724
119,006
121,324
133,718
149,401
171,549

73,571
83,634
90,896
96,158
106,361
126,661

14,667
15,036
11,944
14,700
15,912
16,316

17,487
20,337
18,484
22,860
27,129
28,572

26,867
28,136
29,954
31,263
33,732
36,729

136,626
151,957
157,512
171,733
190,880
217,170

120,485
132,305
126,232
140,518
155,226
173,913

9,374
10,181
10,663
11,317
11,241
11,133

310
307
242
592
933
1,173

1,715
1,884
1,575
2,547
3,557
3,860

53,288
57,449
58,923
59,328
62,474
71,376

55,798 2,555 10,032
62,484 4,239 10,684
54,829 9,881 11,464
66,734 10,391 12,221
77,020 14,799 13,197
86,372 19,392 14,687

163
161
157
156
156
156

31
28
28
25 . . . .
30.......
30___
25___
29___
26___
31___
28
31___

168,522
169,711
172,604
175,754
175,455
180,663
178,493
181,404
182,083
185,864
185,094
197,716

123,907
126,893
129,983
133,253
133,519
138,452
137,056
140,151
140,637
142,511
141,112
151,838

15,844
13,957
13,615
13,414
12,547
13,066
11,982
11,572
11,443
12,053
12,966
13,466

28,771
28,861
29,006
29,087
29,389
29,144
29,455
29,681
30.003
31,300
31,016
32,412

30,426 207,904
32,497 211,396
29,626 211,390
30,111 215,262
31,779 217,001
31,899 222,344
28,878 217,220
29,551 221,043
33,048 225,139
35,331 231,737
34,360 229,828
38,465 247,365

163,418 9,239
165,150 9,365
165,247 8,372
168,360 8,470
170,123 9,540
173,183 9,177
169,837 8,518
171,725 8,467
174,901 8,494
178,312 9,583
174,434 8,939
190,655 11,877

1,044
1,210
1,283
1,285
1,324
1,371
1,368
1,459
1,562
1,446
1,410
1,295

3,470
3,942
3,761
4,069
1,653
2,988
2,223
1,051
2,930
1,972
1,223
3,603

63,011
62,627
60,660
61,487
62,744
64,875
61,418
60,607
61,459
65,380
64,717
73,532

86,654
88,006
91,171
93,049
94,862
94,771
96,310
100,141
100,456
99,931
98,145
100,349

21,086
22,434
22,175
22,606
22,183
24,032
22,492
23,670
24,730
27,477
29,092
30,178

14,619
14,760
14,807
14,905
14,965
15,260
15,182
15,240
15,244
15,389
15,432
15,728

156
156
156
156
156
156
156
156
156
156
156
156

All other member:7’8
1967—Dec. 30
1968—Dec. 31
1969—Dec. 316....
1970—Dec. 31
1951—Dec.
1972—Dec. 31.......

122,511
134,759
140,715
154,130
175,211
197,843

74,995
83,397
92,147
99,404
110,357
127,881

24,689
24,99821,278
22,586
24,343
24,830

22,826
26,364
27,291
32,140
40,511
45,132

20,334
22,664
23,928
25,448
26,783
29,841

146,052 131,156
161,122 144,682
169,078 148,007
184,635 161,850
207,798 181,780
234,342 205,914

2,766
2,839
3,152
3,387
3,853
4,116

96
111
84
135
263
395

1,564
1,281
1,671
2,592
2,993
3,238

61,161
66,578
67,930
69,806
74,072
83,681

65,569
73,873
75,170
85,930
100,600
114,483

552
804
1,820
1,836
3,118
4,455

11,005
11,807
12,766
13,807
15,114
16,608

5,886
5,796
5,691
5,589
5,550
5,526

195,468
197,603
199,365
201,351
203,084
206,092
205,657
207,058
208,391
209,429
211,275
215,570

126,055
128,535
130,118
131,964
134,243
137,383
137,060
138,514
139,794
141,104
142,871
146,973

24,488
23,894
23,676
23,435
22,495
21,638
21,938
21,244
21,171
20,873
21,247
20,828

44,925
45,174
45,571
45,952
46,346
47,072
46,659
47,300
47,426
47,452
47,157
47,769

25,931 229,209 199,603
26,295 231,780 201,349
24,868 231,951 200,461
25,121 234,358 202,710
26,594 238,037 204,432
28,309 241,736 208,974
25,910 239,796 205,480
25,260 240,660 205,351
26,370 243,246 207,920
28,131 246,675 211,026
26,581 246,949 210,570
32,615 256,008 221,710

3,235
3,199
3,063
3,035
3,318
3,471
3,178
3,058
3,094
3,365
3,214
4,463

395
395
395
395
395
342
395
395
395
342
342
353

3,376
3,474
3,396
2,940
2,183
3,766
2,205
1,254
2,434
1,793
1,648
2,547

76,769
76,587
74,409
76,477
77,105
79,585
77,281
76,565
77,421
80,180
79,496
86,792

115,828
117,694
119,198
119,863
121,431
121,810
122,421
124,079
124,576
125,346
125,870
127,554

5,752
6,082
6,619
6,608
7,581
6,753
8,490
8,598
8,212
8,230
8,577
7,129

16,406
16,483
16,801
16,909
17,084
17,604
17,217
17,406
17,551
17,783
17,863
18,418

5,512
5,510
5,505
5,517
5,525
5,527
5,528
5,534
5,539
5,544
5,557
5,557

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

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

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

31.......
28
28
25.......
30.......
30.......
25.......
29
26.......
31
28
31___

For notes see p. A-82.




10,135
10,552
11,362
11,318
12,140
12,511
12,886
13,607
13,326
12,782
12,556
13,513

A 82

COMMERCIAL BANKS □ JULY 1974

Notes to pp. A-80—A-81.
1 “Total loans” include Federal funds sold, and securities purchased
under resale agreements, figures for which are included in “Federal funds
sold, etc.,” on p. A-18 of the April 1974 B u l l e t in .
Effective June 30, 1971, Farmers Home Administration notes are
classified as “Other securities” rather than “Loans.” As a result of this
change, approximately $300 million was transferred to “Other securities”
for the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom of p. A-26.
2 See first two paragraphs of note 1.
3 Reciprocal balances excluded.
4 Includes items not shown separately. See also note 1.
5 See third paragraph of note 1 above.
6 Figure takes into account the following changes beginning June 30,
1969: (1) inclusion of consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic
subsidiaries) and (2) reporting of figures for total loans and for individual
categories of securities on a gross basis—that is, before deduction of
valuation reserves—rather than net as previously reported.
7 Beginning Nov. 9, 1972, designation of banks as reserve city banks
for reserve-requirement purposes has been based on size of bank (net
demand deposits of more than $400 million), as described in the B u l l e t in
for July 1972, p. 626. Categories shown here as “Large” and “All other”




parallel the previous “Reserve city” and “Country” categories, respec­
tively (hence the series are continuous over time).
8 Beginning May 6, 1972, two New York City country banks, with
deposits of $1,412 million, merged and were reclassified as a reserve city
bank. (See also note 7.)
N o t e .—Data are for all commercial banks in the United States (in­
cluding Alaska and Hawaii, beginning with 1959). Commercial banks
represent all commercial banks, both member and nonmember; stock
savings banks; and nondeposit trust companies.
Effective June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include through June 30, 1970, a
small member bank engaged exclusively in trust business; beginning
1973, excludes one national bank in Puerto Rico.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
Data for national banks for Dec. 30, 1967, have been adjusted to make
them comparable with State bank data.
Figures are partly estimated except on call dates.
For revisions in series before Dec. 30, 1967, see earlier B u l l e t in s .

A 83

B o a r d o f G o v e r n o r s a n d S ta ff s h o w n o n fo llo w in g p a g e .




A 84

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
A r t h u r F . B u r n s , Chairman

G e o r g e W . M i t c h e l l , Vice Chairman

A n d r e w F . B r im m e r

Jo h n E . S h e e h a n

R obert C. H o l l a n d

O FFIC E O F M A N A G IN G D IR E C T O R FOR
O P E R A T IO N S A N D S U P E R V IS IO N

Je f f r e y M . B u c h e r
H

OFFICE OF BOARD MEMBERS

Counsel to the Chairman
A d viser to the B oard
J o s e p h R . C o y n e , A ssistan t to the B oard
J o h n S . R i p p e y , A ssistan t to the B oard
J o h n J . H a r t , Special A ssistan t to the B oard
F r a n k O ’B r i e n , J r . , Special A ssistan t to the
B oard
D o n a l d J. W i n n , Special A ssistan t to the B oard

enry

C. W

a l l ic h

O FFIC E O F M ANA G ING DIRECTO R FOR
R E S E A R C H A N D ECO NO M IC POLICY

T h o m a s J. O ’C o n n e l l ,

M anaging D irector
D eputy M anaging

D a v id C . M e l n ic o f f ,
D a n ie l M . D o y l e ,

D irector
A ssistan t D irector
and Program D irecto r for
Contingency Planning
W i l l i a m W . L a y t o n , D irecto r of Equal
Em ploym ent
B r e n t o n C . L e a v i t t , Program D irector
fo r Banking Structure
G ordon

B . G r im w o o d ,

*R obert So lo m o n ,

D irecto r
A sso cia te D irector
h i r t e r , A ssociate

Ja m es R . K u d l in s k i,
E . M a u r ic e M c W

A cting G eneral Counsel
D eputy G eneral Counsel
P l o t k i n , A ssistan t G eneral

A ndrew F. O e h m a n n ,
R obert S.

Counsel
B a l d w in B . T u t t l e ,

A ssistan t General

Counsel

D irecto r
A ssistan t D irector
A ssistan t D irector
A ssista n t D irector

W alter A . A l t h a u se n ,
H arry A . G u in t e r ,


P . D . R in g ,


M urray

B oard
DIVISION OF RESEARCH AND STATISTICS

D irector
D eputy D irector
J a m e s L . P i e r c e , A ssociate D irector
P e t e r M . K e i r , A d viser
S t a n l e y J . S i g e l , A d viser
M u r r a y S . W e r n i c k , A d viser
K e n n e t h B . W i l l i a m s , A d viser
J a m e s B . E c k e r t , A ssociate A d viser
E d w a r d C . E t t i n , A sso cia te A d viser
R o b e r t J . L a w r e n c e , A ssociate A d viser
E l e a n o r J . S t o c k w e l l , A sso cia te A dviser
J o s e p h S . Z e i s e l , A ssociate A d viser
J a m e s L . K i c h l i n e , A ssistan t A d viser
S t e p h e n P . T a y l o r , A ssista n t A d viser
T h o m a s D . T h o m s o n , A ssista n t A d viser
L o u i s W e i n e r , A ssistan t A d viser
H e l m u t F . W e n d e l , A ssistan t A d viser
L e v o n H . G a r a b e d i a n , A ssistan t D irector
L yle E. G ra m ley ,

Jo h n N ic o l l ,
Ronald G. B urke,

S am uel
A rthur

D irector
to the B oard
B . C h a s e , J r . , A d viser to the B oard
L . B r o i d a , A ssistan t to the B oard
A l t m a n n , Special A ssistan t to the

J. C h a r l e s P a r t e e ,

LEGAL DIVISION
DIVISION OF FEDERAL RESERVE BANK
OPERATIONS

J. C h a r l e s P a r t e e , M anaging
S t e p h e n H . A x i l r o d , A d viser

C h a r les R . M c N e il l ,

A ssistan t to the

General Counsel
G r if f it h L . G a r w o o d ,

A d viser

DIVISION OF DATA PROCESSING
D irector
A ssociate D irector
G l e n n L . C u m m i n s , A ssistan t D irector
W a r r e n N . M i n a m i , A ssistan t D irector

OFFICE OF THE SECRETARY
Secretary
A ssistan t Secretary
B e r n a r d , A ssistan t

C harles L. H am pto n ,

C h ester B . F el d b e r g ,

H enry W . M ee tze,

T h e o d o r e E . A l l is o n ,

R.
Secretary

N orm and

V.

E l iz a b e t h L . C a r m ic h a e l ,

C harles W . W o o d ,

D irector
A ssistan t D irector

OFFICE OF THE CONTROLLER

C ontroller
e n k l e r , A ssistan t Controller

Jo h n K a k a l e c ,
Jo h n M . D

DIVISION OF ADMINISTRATIVE SERVICES
W a lter W . K r e im a n n ,

D irector

D o n a l d E . A n d e r s o n , A ssistan t D irector
J o h n D . S m i t h , A ssista n t D irector

DIVISION OF SUPERVISION
AND REGULATION

D irector
D eputy D irector
F r e d e r i c k R. D a h l , A ssistan t D irector
J a c k M . E g e r t s o n , A ssistan t D irector
J a n e t O . H a r t , A ssistan t D irector
J o h n N . L y o n , A ssistan t D irector
J o h n T . M c C l i n t o c k , A ssistan t D irector
T h o m a s A . S i d m a n , A ssistan t D irector
W i l l i a m W . W i l e s , A ssistan t D irector

D irector
A sso cia te D irector
P a u l W o n n a c o t t , A ssociate D irector
R o b e r t F . G e m m i l l , A d viser
R e e d J . I r v i n e , A d viser
B e r n a r d N o r w o o d , A d viser
S a m u e l P i z e r , A d viser
G e o r g e B . H e n r y , A ssociate A dviser
H e l e n B . J u n z , A ssociate A dviser
f N o r m a n S . F i e l e k e , A ssistan t A dviser
R alph C . B r y a n t ,

Jo h n

E. R eyn o lds,

F r e d e r ic S o l o m o n ,

B r e n t o n C . L e a v it t ,

fO n loan from the Federal Reserve Bank of Boston.

*On leave of absence.

A 85




A ssistan t

Secretary

DIVISION OF PERSONNEL
K e it h D . E n g s t r o m ,

DIVISION OF INTERNATIONAL FINANCE

A 86

FEDERAL OPEN MARKET COMMITTEE
A rthur

F. B u r n s , Chairman

P. B l a c k

R obert

F. B r im m er

A ndrew

Je f f r e y M . B u c h e r

A l f r e d H a y e s , Vice Chairman

E. S h e e h a n

G eo r g e H . C l a y

Jo h n

R obert C . H o l l a n d

H enry C. W

M o n r o e K im b r e l

W il l is J. W i n n

a l l ic h

G eo r g e W . M it c h e l l
A r t h u r L. B ro id a ,

Secretary

Econom ist
(International Finance)
H a r r y B r a n d t , A ssociate Econom ist
R a l p h C . B r y a n t , A ssociate Econom ist
R i c h a r d G . D a v i s , A ssociate Econom ist
R a y m o n d J . D o l l , A ssociate Econom ist
L y l e E . G r a m l e y , A ssociate Econom ist
W i l l i a m J . H o c t e r , A ssociate Econom ist
J a m e s P a r t h e m o s , A ssociate Econom ist
J a m e s L . P i e r c e , A ssociate Econom ist
J o h n E . R e y n o l d s , A ssociate Econom ist

* R o b e rt S o lo m o n ,

M u r r a y A l t m a n n , D eputy Secretary
N o r m a n d R . V . B e r n a r d , A ssistan t

Secretary
General Counsel
Deputy G eneral Counsel
J o h n N i c o l l , A ssistan t G eneral Counsel
J . C h a r l e s P a r t e e , Senior Econom ist
S t e p h e n H . A x i l r o d , Econom ist
(Dom estic Finance)
T h o m a s J . O ’C o n n e l l ,
E d w a rd G. G u y ,

M anager, System Open M arket Account
Special M anager, System Open M arket Account
P e t e r D . S t e r n l i g h t , Deputy M anager , System Open M arket Account
A la n

R . H o lm e s ,

C h a r le s A. C oom bs,

FEDERAL ADVISORY COUNCIL
I.

T hom as

S to rrs , f ifth f e d e ra l re se rv e d is tric t,

Jam es F. E n g lis h , J r ., f i r s t f e d e r a l r e s e r v e d i s tr ic t,
G

a b r ie l

H

a u g e , seco n d

D onald E. L a sa ter,

fed era l

RESERVE DISTRICT

J am es F . B o d in e ,
ltz

,

t h ir d

G

fed era l

fourth

llen

,

s ix t h

,

n in t h

fed era l

dam s, ten th

fed era l

eleventh

fed er a l

RESERVE DISTRICT
sev en th

H

fed era l

arold

A . R o g ers,

RESERVE DISTRICT

Secretary
A ssistant Secretary

H e rb e rt V. P ro c h n o w ,
W illia m




ix o n

L e w is H . B o n d ,

fed era l

RESERVE DISTRICT

*On leave of absence.

H. D

RESERVE DISTRICT

e r r ig a n

P. St u l ts,

eorge

E ugene H . A

fed er a l

RESERVE DISTRICT

A

fed era l

RESERVE DISTRICT

RESERVE DISTRICT

L aw rence A . M

e ig h t h

RESERVE DISTRICT

RESERVE DISTRICT

C l a ir E . F u

President
Vice President

J. K o rs v ik ,

tw elfth

fed er a l

A 87

FEDERAL RESERVE BANKS AND BRANCHES
Federal Reserve Bank,
branch, or facility
Zip code

Chairman
Deputy Chairman

President
First Vice President

Boston ......................

02106

James S. Duesenberry
Louis W. Cabot

Frank E. Morris
James A. McIntosh

New Y ork................

10045

Roswell L. Gilpatric
Frank R. Milliken
Norman F. Beach

Alfred Hayes
Richard A. Debs

Buffalo................. ....14240

A. A. Maclnnes, Jr.

Philadelphia .........

19101

John R. Coleman
Edward J. Dwyer

David P. Eastburn
Mark H. Willes

Cleveland ................

44101

Horace A. Shepard
Robert E. Kirby
Graham E. Marx
Richard Cyert

Willis J. Winn
Walter H. MacDonald

Robert W. Lawson, Jr.
E. Craig Wall
James G. Harlow
Charles W. DeBell

Robert P. Black

H. G. Pattillo
Clifford M. Kirtland, Jr.
William C. Bauer
Gert H. W. Schmidt
Edward J. Boling
Edwin J. Caplan

Monroe Kimbrel
Kyle K. Fossum

William H. Franklin
Peter B. Clark
W.M. Defoe

Robert P. Mayo
Ernest T. Baughman

Edward J. Schnuck
Sam Cooper
W.M. Pierce
James C. Hendershot
C. Whitney Brown

Darryl R. Francis
Eugene A. Leonard

Bruce B. Dayton
James P. McFarland
William A. Cordingley

Bruce K. MacLaury
Clement A. Van Nice

Robert W. Wagstaff
Robert T. Person
Maurice B. Mitchell
Joseph H. Williams
Durward B. Varner

George H. Clay
John T. Boy sen

John Lawrence
Charles T. Beaird
Gage Holland
T.J. Barlow
Marshall Boykin, III

Philip E. Coldwell
T. W. Plant

O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
John R. Howard
Sam H. Bennion
C. Henry Bacon, Jr.

John J. Balles
JohnB. Williams

Cincinnati ........... ....45201
Pittsburgh ............
15230
Richm ond................

23261

Baltimore ............. ....21203
Charlotte.................... 28201
Culpeper Communications
C enter.................... 22701
Atlanta ....................

30303

Birmingham.........
Jacksonville .........
Nashville..............
New Orleans.......
Miami Office.........

35202
32203
37203
70161
33152

C hicago....................

60690

Detroit...................

48231

St. L ouis...................

63166

Little Rock............
Louisville.............
Memphis..............

72203
40201
38101

Minneapolis ............

55480

Helena...................

59601

Kansas C ity.............

64198

Denver .................
Oklahoma City ..
Omaha .................

80217
73125
68102

D a lla s.......................

75222

El P aso .................
Houston................
San Antonio.........

79999
77001
78295

San F rancisco.........

94120

Los A ngeles.........
Portland................
Salt Lake C ity......
Seattle...................

90051
97208
84110
98124




Vice President
in charge of branch

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne
J. Gordon Dickerson, Jr.

Hiram J. Honea^
Edward C. Rainey
Jeffrey J. Wells
George C. Guynn
W. M. Davis

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

Howard L. Knous

George C. Rankin
William G. Evans
Robert D. Hamilton

Frederic W. Reed
James L. Cauthen
Carl H. Moore

Gerald R. Kelly
William M. Brown
A. Grant Holman
Paul W. Cavan

A 88

FEDERAL RESERVE BOARD PUBLICATIONS
A vailable from Publications Services, D ivision o f A dm in istrative Services, B o a rd of G overnors o f the Federal
R eserve System , W ashington, D .C . 20551. W here a charge is indicated, rem ittance should accom pany request
and be made p a yable to the o rder o f the B o a rd o f G overnors of the Federal R eserve System in a form collectible
at p a r in U .S. currency. (Stam ps and coupons are not accepted.)

ANNUAL REPORT
FEDERAL RESERVE BULLETIN. M onthly. $6.0 0 per
year or $ .6 0 each in the United States and its
possessions, B olivia, Canada, Chile, Colombia,
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Uruguay, and Venezuela; 10 or more of same issue
to one address, $ 5 .0 0 per year or $ .5 0 each. E lse­
where, $ 7 .0 0 per year or $ .7 0 each.
FEDERAL RESERVE CHART BOOK ON FINANCIAL
AND BUSINESS STATISTICS. M onthly. Subscrip­
tion includes one issue of Historical Chart Book.
$ 6 .0 0 per year or $ .6 0 each in the United States
and the countries listed above; 10 or more of same
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Subscription to m onthly chart book includes one
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Elsewhere, $ .7 0 each.
THE FEDERAL RESERVE ACT, as amended through
December 1971, with an appendix containing pro­
visions of certain other statutes affecting the Federal
Reserve System . 252 pp. $1.2 5 .
REGULATIONS OF THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM.
PUBLISHED INTERPRETATIONS OF THE BOARD OF
GOVERNORS, as of Decem ber 31, 1973. $2.50.
DEBITS AND CLEARING STATISTICS AND THEIR USE.
1959. 144 pp. $ 1 .0 0 each; 10 or more to one
SUPPLEMENT TO^ANKING AND MONETARY STATISTICS. Sec. 1. Banks and the Monetary System .
1962. 35 pp. $ .3 5 . Sec. 2. Member Banks. 1967.
59 pp. $.50. Sec. 5 . Bank D ebits. 1966. 36 pp.
$ .3 5 . Sec. 6 . Bank Incom e. 1966. 29 pp. $ .35.
S ec. 9. Federal Reserve Banks. 1965. 36 pp. $.35.
S ec. 10. M ember Bank Reserves and Related Items.
1962. 64 pp. $ .5 0 . Sec. 11. Currency. 1963. 11
pp. $.35. Sec. 12. M oney Rates and Securities
Markets. 1966. 182 pp. $.6 5 . S ec. 14. Gold. 1962.
24 pp. $.35. Sec. 15. International Finance. 1962.
92 pp. $ .65. Sec. 16 (N ew ). Consumer Credit.
1965. 103 pp. $.65.
INDUSTRIAL PRODUCTION— 1971 edition. 383 pp.
$ 4 .0 0 each; 10 or more to one address, $ 3 .5 0 each.
BANK MERGERS & THE REGULATORY AGENCIES:
APPLICATION OF THE BANK MERGER ACT OF
1960. 1964. 260 pp. $ 1 .0 0 each; 10 or more to
one address, $.85 each.
THE PERFORMANCE OF BANK HOLDING COMPA­




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address, $ .2 0 each.
THE FEDERAL FUNDS MARKET. 1959. I l l pp. $ 1 .0 0
each; 10 or more to one address, $.85 each.
TRADING IN FEDERAL FUNDS. 1965. 116 pp. $ 1 .0 0
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U.S. TREASURY ADVANCE REFUNDING, JUNE
1960-JULY 1964. 1966. 65 pp. $ .5 0 each; 10 or
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BANK CREDIT-CARD AND CHECK-CREDIT PLANS.
1968. 102 pp. $ 1 .0 0 each; 10 or more to one
address, $.85 each.
INTEREST RATE EXPECTATIONS: TESTS ON YIELD
SPREADS AMONG SHORT-TERM GOVERNMENT
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SURVEY OF FINANCIAL CHARACTERISTICS OF
CONSUMERS. 1966. 166 pp. $1.0 0 each; 10 or
more to one address, $.85 each.
SURVEY OF CHANGES IN FAMILY FINANCES. 1968.
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$.85 each.
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or more to one address, $ .2 0 each.
JOINT TREASURY-FEDERAL RESERVE STUDY OF
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STAFF STUDIES— PART 1.1 9 7 0 . 86 pp. $ .5 0 each;
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1971. 153 pp. and PART 3. 1973. 131 pp. Each
volum e $1.00; 10 or more to one address, $.85
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DURES— STAFF STUDIES. 1971. 218 pp. $2.00;
10 or more to one address, $1.75 each.
REAPPRAISAL OF THE FEDERAL RESERVE DIS­
COUNT MECHANISM, Vol. 1. 1971. 276 pp. V ol.
2. 1971. 173 pp. V ol. 3. 1972. 220 pp. Each
volum e $ 3 .0 0 each; 10 or more to one address,
$2.50 each.
THE ECONOMETRICS OF PRICE DETERMINATION
CONFERENCE, October 30-31, 1970, W ashington,
D .C . Oct. 1972, 397 pp. Cloth ed. $ 5 .0 0 each;
10 or more to one address, $4.50 each. Paper ed.
$ 4 .0 0 each; 10 or more to one address, $ 3 .6 0 each.
FEDERAL RESERVE STAFF STUDY: WAYS TO MOD­
ERATE FLUCTUATIONS IN HOUSING C O N ­
STRUCTION, D ec. 1972, 487 pp. $ 4 .0 0 each; 10
or more to one address, $ 3 .6 0 each.
LENDING FUNCTIONS OF THE FEDERAL RESERVE
BANKS: A HISTORY, by Howard H. Hackley. 1973.
271 pp. $ 3 .5 0 each; 10 or more to one address,
$ 3 .0 0 each.

A 89

STAFF ECONOMIC STUDIES
Studies and p apers on econom ic and financial subjects
that are o f general interest in the field of econom ic
research.
Sum m aries only printed in th e BULLETIN
(L im ited supply o f m im eographed copies of full
text available upon request fo r single copies)
THE DETERMINANTS OF A DIRECT INVESTMENT
OUTFLOW WITH EMPHASIS ON THE SUPPLY OF
FUNDS, by Frederic Brill Ruckdeschel. June 1973.
171 pp.
MORTGAGE COMMITMENTS ON INCOME PROPER­
TIES: A NEW SERIES FOR 15 LIFE INSURANCE
COMPANIES, 1951-70, by Robert M oore Fisher and
Barbara Negri Opper. Aug. 1973. 83 pp.
THE IMPACT OF HOLDING COMPANY ACQUISITIONS
ON AGGREGATE CONCENTRATION IN BANKING,
by Samuel H. Talley. Feb. 1974. 24 pp.
OPERATING POLICIES OF BANK HOLDING COMPA­
NIES— PART II: NONBANKING SUBSIDIARIES, by
Robert J. Lawrence. Mar. 1974. 59 pp.
SHORT-RUN VARIATIONS IN THE MONEY S T O C K SEASONAL OR CYCLICAL? by Herbert M. Kauf­
man and Raymond E. Lombra. June 1974. 27 pp.
Printed in full in th e BULLETIN
(Staff Econom ic Studies shown in list below.
E xcept fo r Staff P apers, Staff Econom ic Studies, and
som e leading articles, m ost of the articles reprinted do
not exceed 12 p a g e s.)
REPRINTS
ADJUSTMENT FOR SEASONAL VARIATION. 6/41.
SEASONAL FACTORS AFFECTING BANK RESERVES.
2/58.
LIQUIDITY AND PUBLIC POLICY, Staff P aper by Ste­
phen H. Axilrod. 10/61.
SEASONALLY ADJUSTED SERIES FOR BANK CREDIT.
7/62.
INTEREST RATES AND MONETARY POLICY, Staff
P aper by Stephen H. Axilrod. 9/62.
MEASURES OF MEMBER BANK RESERVES. 7/63.
REVISION OF BANK DEBITS AND DEPOSIT TURN­
OVER SERIES. 3/65.
RESEARCH ON BANKING STRUCTURE AND PER­
FORMANCE, Staff E con om ic Stu dy by Tynan
Smith. 4 /66.
A REVISED INDEX OF MANUFACTURING CAPACITY,
Staff E con om ic S tu dy by Frank de Leeuw with
Frank E. Hopkins and M ichael D. Sherman. 11/66.
REVISED SERIES ON COMMERCIAL AND INDUS­
TRIAL LOANS BY INDUSTRY. 2/67.
INTEREST COST EFFECTS OF COMMERCIAL BANK
UNDERWRITING OF MUNICIPAL REVENUE
BONDS. 8/67.
U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN
1960-67. 4 /6 8 .
FEDERAL FISCAL POLICY IN THE 1960’s. 9/68.




BUSINESS FINANCING BY BUSINESS FINANCE COM­
PANIES. 10/68.
HOUSING PRODUCTION AND FINANCE. 3/69.
REVISION OF WEEKLY SERIES FOR COMMERCIAL
BANKS. 8/69.
EURO-DOLLARS: A CHANGING MARKET. 10/69.
RECENT CHANGES IN STRUCTURE OF COMMER­
CIAL BANKING. 3/70.
SDR’s IN FEDERAL RESERVE OPERATIONS AND
STATISTICS. 5/70.
MEASURES OF SECURITY CREDIT. 12/70.
MONETARY AGGREGATES AND MONEY MARKET
CONDITIONS IN OPEN MARKET POLICY. 2/71.
BANK FINANCING OF MOBILE HOMES. 3/71.
INTEREST RATES, CREDIT FLOWS, AND MONETARY
AGGREGATES SINCE 1964. 6/71.
TWO KEY ISSUES OF MONETARY POLICY. 6/71.
SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71.
BANK RATES ON BUSINESS LOANS— REVISED
SERIES. 6/71.
INDUSTRIAL PRODUCTION— REVISED AND NEW
MEASURES. 7/71.
REVISED MEASURES OF MANUFACTURING CAPAC­
ITY UTILIZATION. 10/71.
REVISION OF BANK CREDIT SERIES. 12/71.
PLANNED AND ACTUAL LONG-TERM BORROWING
BY STATE & LOCAL GOVERNMENTS. 12/71.
ASSETS AND LIABILITIES OF FOREIGN BRANCHES
OF U.S. BANKS. 2/72.
WAYS TO MODERATE FLUCTUATIONS IN THE CON­
STRUCTION OF HOUSING. 3/72.
CONSTRUCTION LOANS AT COMMERCIAL BANKS.
6/72.
SOME ESSENTIALS OF INTERNATIONAL MONETARY
REFORM. 6/72.
BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­
O VER-REVISED SERIES. 7/72.
RECENT REGULATORY CHANGES IN RESERVE RE­
QUIREMENTS AND CHECK COLLECTION. 7/72.
YIELDS ON NEWLY ISSUED CORPORATE BONDS.
9/72.
RECENT ACTIVITIES OF FOREIGN BRANCHES OF
U.S. BANKS. 10/72.
REVISION OF CONSUMER CREDIT STATISTICS.
10/72.
SURVEY OF FINANCE COMPANIES, 1970. 11/72.
ONE-BANK HOLDING COMPANIES BEFORE THE 1970
AMENDMENTS. 12/72.
EVOLUTION OF THE PAYMENTS MECHANISM. 12/72.
REVISION OF THE MONEY STOCK MEASURES AND
MEMBER BANK RESERVES AND DEPOSITS. 2/73.
STATE AND LOCAL BORROWING ANTICIPATIONS
AND REALIZATIONS. 4/73.
YIELDS ON RECENTLY OFFERED CORPORATE
BONDS. 5/73.
FEDERAL FISCAL POLICY, 1965-72. 6/73.
SOME PROBLEMS OF CENTRAL BANKING. 6/73.
BANKING AND MONETARY STATISTICS, 1972. S e­
lected series of banking and monetary statistics for
1972 only. 3/73 and 7/73.

A 90

CAPACITY UTILIZATION IN MAJOR MATERIALS IN­
DUSTRIES. 8/73.
CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­
MERCIAL BANKS. 9/73.
RATES ON CONSUMER INSTALMENT LOANS. 9/73.
BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971.
10/73.
NEW SERIES FOR LARGE MANUFACTURING COR­
PORATIONS. 10/73.
MONEY SUPPLY IN THE . CONDUCT OF MONETARY
POLICY. 11/73.
U.S. ENERGY SUPPLIES AND USES, Staff E conom ic
Study by Clayton Gehman. 12/73.
REVISION OF THE MONEY STOCK MEASURES AND
MEMBER BANK DEPOSITS. 2/74.
TREASURY AND FEDERAL RESERVE FOREIGN EX­
CHANGE OPERATIONS. 3/74.




FEDERAL RESERVE BULLETIN □ JULY 1974

RECENT DEVELOPMENTS IN THE U.S. BALANCE OF
PAYMENTS. 4/74.
CHANGES IN "TIME AND SAVINGS DEPOSITS AT
COMMERCIAL BANKS, JULY-OCTOBER 1973.
4 /74.
CHANGES IN BANK LENDING PRACTICES, 1 9 7 3 .4 /7 4 .
CAPACITY UTILIZATION FOR MAJOR MATERIALS:
REVISED MEASURES. 4/74.
FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER
OF 1974. 5/74.
OPEN MARKET OPERATIONS IN 1973. 5/74.
NUMERICAL SPECIFICATIONS OF FINANCIAL VARI­
ABLES AND THEIR ROLE IN MONETARY POLICY.
5/74.
TREASURY AND FEDERAL RESERVE FOREIGN EX­
CHANGE OPERATIONS, INTERIM REPORT. 6/74.

A 91

INDEX TO STATISTICAL TABLES

Acceptances, bankers’, 11, 27, 29
Agricultural loans of commercial banks, 18, 20
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 18, 19, 20, 32, 80-82
Federal Reserve Banks, 12
Nonfinancial corporations, current, 43
Automobiles:
Consumer instalment credit, 47, 48, 49
Production index, 50, 51
Bank credit proxy, 15
Bankers’ balances, 19, 22
(See also Foreigners, claims on, and liabilities to)
Banks for cooperatives, 40
Bonds (See also U.S. Govt, securities):
New issues, 40, 41, 42
Yields and prices, 30, 31
Branch banks:
Assets, foreign branches of U.S. banks, 72
Liabilities of U.S. banks to their foreign branches and
foreign branches of U.S. banks, 24, 73
Brokerage balances, 71
Business expenditures on new plant and equipment, 43
Business indexes, 52
Business loans (See Commercial and industrial loans)

Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 19, 23, 80-82
Ownership by individuals, partnerships, and
corporations, 26
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 26
Banks, by classes, 16, 19, 23, 32, 80-82
Federal Reserve Banks, 12, 74
Subject to reserve requirements, 15
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 43, 79
Employment, 52, 54
Farm mortgage loans, 44
Federal agency obligations, 11, 12, 13
Federal finance:
Receipts and outlays, 34, 35
Treasury operating balance, 34
Federal funds, 7, 18, 20, 24, 29
Federal home loan banks, 39, 40
Federal Home Loan Mortgage Corporation, 39, 44, 45
Federal Housing Administration, 44, 45, 46
Federal intermediate credit banks, 39, 40
Federal land banks, 39, 40, 44
Federal National Mortgage Assn., 39, 40, 44, 45, 46
Federal Reserve Banks:
Condition statement, 12
U.S. Govt, securities held, 4, 12, 13, 36, 37
Federal Reserve credit, 4, 6, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 39, 40
Finance companies:
Loans, 20, 48, 49
Paper, 27, 29
Financial institutions, loans to, 18, 20
Float, 4
Flow of funds, 58, 59
Foreign:
Currency operations, 11, 12
Deposits in U.S. banks, 5, 12, 19, 23, 74
Exchange rates, 77
Trade, 61
Foreigners:
Claims on, 68, 69, 70, 74, 75, 76
Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76

Capacity utilization, 52
Capital accounts:
Banks, by classes, 16, 19, 24, 80-82
Federal Reserve Banks, 12
Central banks, 77, 78
Certificates of deposit, 24
Commercial and industrial loans:
Commercial banks, 15, 18, 27
Weekly reporting banks, 20-24, 25
Commercial banks:
Assets and liabilities, 15, 16, 18, 19, 20, 80-82
Consumer loans held, by type, 47
Deposits at, for payment of personal loans, 26
Loans sold outright, 27
Number, by classes, 16, 80-82
Real estate mortgages held, by type of holder and prop­
erty, 44-46
Commercial paper, 27, 29
Condition statements (See Assets and liabilities)
Construction, 52, 53
Consumer credit:
Instalment credit, 47, 48, 49
Noninstalment credit, 47
Consumer price indexes, 52, 55
Consumption expenditures, 56, 57
Corporations:
Profits, taxes, and dividends, 43
Sales, revenue, profits, and dividends of large manufac­
turing corporations, 79
Security issues, 41, 42
Security yields and prices, 30, 31
Cost of living (See Consumer price indexes)
Currency and coin, 5, 9, 19
Currency in circulation, 5, 14
Customer credit, stock market, 31, 32

Gold:
Certificates, 12
Earmarked, 74
Net purchases by United States, 62
Reserves of central banks and govts., 78
Stock, 4, 61
Government National Mortgage Assn., 44
Gross national product, 56, 57

Debits to deposit accounts, 13
Debt (See specific types of debt or securities)

Housing permits, 52
Housing starts, 53




(References are to pages A-4 through A-82 although the prefix “ A ” is omitted in this index)

(For list of tables published periodically, but not monthly, see page A-3)

(References are to pages A-4 through A-82 although the prefix “ A ” is omitted in this index)

A 92

Income, national and personal, 56, 57
Industrial production index, 50, 51, 52
Instalment loans, 47, 48, 49
Insurance companies, 33, 36, 37, 44, 46
Insured commercial banks, 16, 18, 26
Interbank deposits, 16, 19, 80-82
Interest rates:
Bond and stock yields, 30
Business loans by banks, 28
Federal Reserve Banks, 8
Foreign countries, 76, 77
Money market rates, 29
Mortgage yields, 45, 46
Prime rate, commercial banks, 28
Time and savings deposits, maximum rates, 10
International capital transactions of U .S., 63-76
International institutions, 62, 77, 78
Inventories, 56
Investment companies, issues and assets, 42
Investments (See also specific types of investments):
Banks, by classes, 16, 18, 21, 22, 32, 80-82
Commercial banks, 15
Federal Reserve Banks, 12, 13
Life insurance companies, 33
Savings and loan assns., 33
Labor force, 54
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 16, 18, 20, 32, 80-82
Commercial banks, 15, 16, 18, 20, 25, 27, 28
Federal Reserve Banks, 4, 6, 8, 12, 13
Insurance companies, 33, 46
Insured or guaranteed by U.S., 44, 45, 46
Savings and loan assns., 33
Manufacturers:
Capacity utilization, 52
Production index, 51, 52
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 16, 18, 80-82
Borrowings at Federal Reserve Banks, 6, 12
Number, by classes, 16, 80-82
Reserve position, basic, 7
Reserve requirements, 9
Reserves and related items, 4, 6, 15
Mining, production index, 51
Mobile home shipments, 53
Money market rates (See Interest rates)
Money stock and related data, 14
Mortgages (See Real estate loans and Residential mortgage
loans)
Mutual funds (See Investment companies)
Mutual savings banks, 23, 32, 36, 37, 44, 46
National banks, 16, 26
National defense expenditures, 35
National income, 56, 57
Nonmember banks, 17, 18, 19, 26
Open market transactions, 11
Payrolls, manufacturing index, 52
Personal income, 57
Prices:
Consumer and wholesale commodity , 52, 55
Security, 31
Prime rate, commercial banks, 28
Production, 50, 51, 52
Profits, corporate, 43, 79




FEDERAL RESERVE BULLETIN □ JULY 1974

Real estate loans:
Banks, by classes, 18, 21, 32, 44
Mortgage yields, 45, 46
Type of holder and property mortgaged, 44—46
Reserve position, basic, member banks, 7
Reserve requirements, member banks, 9
Reserves:
Central banks and govts., 78
Commercial banks, 19, 22, 24
Federal Reserve Banks, 12
Member banks, 5, 6, 15, 19
U.S. reserve assets, 61
Residential mortgage loans, 45, 46
Retail credit, 47, 48, 49
Retail sales, 52
Sales, revenue, profits, and dividends of large manufacturing
corporations, 79
Saving:
Flow of funds series, 58, 59
National income series, 56, 57
Savings and loan assns., 33, 37, 44, 46
Savings deposits (See Time deposits)
Savings institutions, principal assets, 32, 33
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 39, 40
International transactions, 70, 71
New issues, 40, 41, 42
Yields and prices, 30, 31
Special Drawing Rights, 4, 12, 60, 61
State and local govts.:
Deposits, 19, 23
Holdings of U.S. Govt, securities, 36, 37
New security issues, 40, 41
Ownership of securities of, 18, 22, 32
Yields and prices of securities, 30, 31
State member banks, 17, 26
Stock market credit, 31, 32
Stocks (See also Securities):
New issues, 41, 42
Yields and prices, 30, 31
Tax receipts, Federal, 35
Time deposits, 10, 15, 16, 19, 23, 80-82
Treasury currency, Treasury cash, 4, 5
Treasury deposits, 5, 12, 34
Treasury operating balance, 34
Unemployment, 54
U.S. balance of payments, 60
U.S. Govt, balances:
Commercial bank holdings, 19, 23
Member bank holdings, 15
Treasury deposits at Reserve Banks, 5, 12, 34
U.S. Govt, securities:
Bank holdings, 16, 18, 21, 32, 36, 37, 80-82
Dealer transactions, positions, and financing, 38
Federal Reserve Bank holdings, 4, 12, 13, 36, 37
Foreign and international holdings, 12, 68, 70, 74
International transactions, 68, 70
New issues, gross proceeds, 41
Open market transactions, 11
Outstanding, by type of security, 36, 37
Ownership, 36, 37
Yields and prices, 30, 31
Utilities, production index, 51
Veterans Administration, 44, 45, 46
Weekly reporting banks, 20-24

Yields (See Interest rates)

B O U N D A R IE S O F F E D E R A L R E SE R V E D IST R IC T S A N D T H E IR B R A N C H T E R R IT O R IE S

Minneapolis^

Omafia*

Kansas City^1

It. L o u is

Oklahoma. City

Dallas

(M ean s
>an Antonio*
Miami

‘D ram by'RW (jaCvin, Cart

A (o THE FEDERAL RESERVE SYSTEM

q) a

A L A S KA
H A W A II

L e g e n d

Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories
Board of Governors of the Federal Reserve System

o

© Federal Reserve Bank Cities



• Federal Reserve Branch Cities

Federal Reserve Bank Facilities