Full text of Federal Reserve Bulletin : June 1971
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FEDERAL RESERVE
BULLETIN
* * * * * * *
JUNE 1971
BOARD OF GOVERNORS □ THE FEDERAL RESERVE SYSTEM □ WASHINGTON, D.C.
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in U .S. currency. (Stamps and coupons not accepted)
FEDERAL RESERVE
BULLETIN
NUMBER 6 □ VOLUME 57 □ JUNE 1971
C O N TEN TS
425
Interest Rates, Credit Flows, and Monetary Aggregates Since
1964
441
Staff Economic Studies: Summaries
445
Member Bank Income, 1970
452
Two Key Issues of Monetary Policy
456
Survey of Demand Deposit Ownership
468
Bank Rates on Business Loans— Revised Series
478
Statements to Congress
503
Record of Policy Actions of the Federal Open Market Committee
512
Law Department
546
Announcements
548
National Summary of Business Conditions
Financial and Business Statistics
A
1
Contents
A
3
Guide to Tabular Presentation
A
3
Statistical Releases: Reference
A
4
U.S. Statistics
A
72
International Statistics
A 111
Board of Governors and Staff
A 112
Open Market Committee and Staff; Federal Advisory Council
A 113
Federal Reserve Banks and Branches
A 114
Federal Reserve Board Publications
A 121
Index to Statistical Tables
Map of Federal Reserve System on Inside Back Cover
EDITORIAL
C O M M ITTEE
Charles Molony
J. Charles Partee
Robert C. Holland
Robert Solomon
Kenneth B. Williams
Elizabeth B. Sette
The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi
torial committee. This committee is responsible for opinions expressed except in official
statements and signed articles. Direction for the art work is provided by Mack Rowe.
Interest Rates,
Credit Flows, and
Monetary Aggregates
Since 1964
SELECTED INTEREST RATES
In per cent
Rates
Earlier
highs 1
Short-term:
7.87
Treasury
(Jan.
bills,
3-mo.
70)
Commercial 8.84
paper, 4 to (Dec.
69)
6 mos.
Long-term:
10-yr. U.S. 7.91
(May
Govt.2
70)
Corporate 9.12
Aaa, new (July
issues 3
70)
1971
lows 1
June
15,
1971
3.38
(Mar.)
4.95
4.19
(Mar.)
5.50
5.70
(Mar.)
6.70
7.00
(Feb.)
37.90
1 Monthly averages.
2 Estimated from yield curve.
a Estimated by First National City
Bank, except latest figure which is
Federal Reserve estimate for week
ending June 18, 1971.
INTEREST RATES in securities markets have fluctuated very
sharply over the past half-decade, although the trend in yields has
generally been upward. In 1969 and early 1 970, when inflation
ary expectations were strong and bank credit expansion was cur
tailed, market rates reached levels as high as any in U.S. history.
Then during 1 970 and early 1 97 1, as economic activity slowed
and monetary policy eased, interest rates dropped more sharply
than in most earlier periods of decline.
Most recently, interest rates have tended up again, reversing
some of their preceding decline. These recent yield increases—
which occurred in the aftermath of a rapid expansion of gross
national product during the first quarter of 1971— were accom
panied by large credit demands in long-term financial markets.
They also came during a time when a flow of private short-term
investment funds into foreign money market centers— indicating
in part expectations of upward revaluations of some European
currencies— had exerted some pressures to bring short-term U.S.
rates somewhat closer into alignment with higher interest rates
in foreign centers.
The factors that account for the behavior of interest rates at
any point in time are highly complex— reflecting, in addition to
current developments, lagged responses to past events and expec
tations of future events. To try to sort out more persisting under
lying relationships among interest rates, credit flows, and mone-
426
FEDERAL RESERVE BULLETIN □ JUNE 1971
tary aggregates, this article reviews interest rate movements
from 1964 to early 1971.
The review starts with the years just prior to the escalation of
U.S. involvement in the Vietnamese conflict— that is, early 1964
to mid-1965. In those years, while short-term rates had risen
appreciably from the lows reached in the 1960-61 recession,
interest rates in general remained remarkably stable by present
standards, particularly in long-term markets. Moreover, the levels
of rates prevailing— with long-term bonds generally yielding
somewhat above 4 per cent and rates in short-term markets run
ning a bit lower— were not unusual in terms of previous U.S.
financial history.
After mid-1965, however, interest rates began to trend sharply
upward and to show much greater volatility. The 6-year span
since mid-1965 divides logically into several subperiods that
represent fairly distinct patterns of increasing or decreasing yield
movements.
Data in Chart 1 and Table 1 differentiate these various sub
periods and show summary measures of interest rate changes and
some other economic data. The interest rates selected for these
exhibits are two relatively sensitive market series showing bor
rowing costs for major corporations— namely, the rate on 4- to
6-month prime commercial paper and the average rate on newly
issued corporate bonds of Aaa quality. These two series are
broadly representative of yields in short- and long-term financial
TABLE 1
SUMMARY DATA FOR SEVEN PERIODS OF INTEREST RATE CHANGES
End 1963 to Early 1971
In per cent unless otherwise indicated
Item
Q l 1964- Q 31965Q2 1965 Q4 1966
1st H
1967
Q3 1967- 2nd H
1968
Q2 1968
Year
1969
Q l 1970Q l 1971
Interest rate levels, end of
period:
Commercial paper...................
Corporate Aaa, new issues.. . .
Interest rate changes:
Commercial paper...................
Corporate bonds......................
4.38
4.48
6.00
5.76
4.72
5.58
6.08
6.56
5.96
6.69
8.62
8.41
4.59
7.05
.47
.14
1.62
1.28
- 1 .2 8
- .1 8
1.36
.98
-.1 2
.13
2.66
1.72
- 4 .0 3
- 1 .3 6
Annual rates of increase:
Real GNP.................................
GNP deflator...........................
Current-dollar G N P ...............
Money stock ( M i) ...................
5.6
1.8
7.4
4.1
6.2
2.8
9.2
3.5
1.1
2.4
3.6
6.8
5.0
4.2
9.4
7.2
3.5
4.3
7.9
7.7
1.6
5.0
6.8
3.1
.4
5.4
5.8
6.2
Average level during period:
High-employment budget sur
plus (in billions of dollars at
annual rates).........................
3.9
-5 .4
- 1 3 .0
- 1 5 .5
- 4 .4
3.9
- .4
N ote.—Based on quarterly data for terminal quarters in each period, except growth rate of M l —
which is calculated from averages for terminal months in the periods—and high-employment budget
surplus—which shows average levels for the entire span of each period. D ata for yields on Aaa newly
issued corporate bonds are First National City Bank estimates and data for high-employment budget
surplus (N IA basis) are unpublished estimates by the Division of Research and Statistics at the Federal
Reserve.
INTEREST RATES SINCE 1964
427
markets, although any single interest rate series on a particular
type of debt will, of course, occasionally show divergencies from
the general pattern of rate changes.
The yield on new corporate bonds was selected as the most
representative measure for long-term market yields. Interest rates
on long-term Treasury bonds tended to move more sluggishly
during this time span, because the AlA per cent interest rate
ceiling foreclosed new Treasury debt offering of long maturity
during most of the period under review. To facilitate compari
sons between long- and short-term rates on debt of comparable
quality, the short-term rate used in the analysis is the rate on
commercial paper.
SKETCH OF SUBPERIODS
1 1SUBPERIODS showing different patterns of yield movement
PER CENT
1965
1967
1969
'71
Monthly averages. First National City Bank estimates of average investor yield on new issues
of high-grade corporate bonds adjusted to Aaa basis; prime commercial paper, dealer offering
rates.
The relevant subperiods of rising and falling interest rates can be
readily identified on Chart 1. The large extent of interest rate
stability during the period from early 1964 to mid-1965 has
already been mentioned, although on balance yields did tend
to rise slowly during this period. Market yields rose sharply in
the next period— from mid-1965 through the so-called “credit
crunch” of 1966. As is usually the case, changes in long-term
rates were in the same direction as short-term rates, but were
smaller. Most yields reached their peaks at the height of the
credit crunch in the fall of 1966. These interest rate increases
partly reflected an unusually rapid pace of economic growth
428
FEDERAL RESERVE BULLETIN □ JUNE 1971
during late 1965 and early 1966. Defense contracts and payrolls
mounted quickly, on top of spending demands by private eco
nomic sectors that had been stimulated by the income tax cuts of
1964. While the growth rate of real economic activity became
less rapid over the course of 1966, readily available manpower
and capital resources had been absorbed by that time and infla
tionary pressures had set in. To deal with the thrust of these excess
demands, monetary policy became restrictive.
The succeeding subperiod of declining interest rates covers the
first half of 1967. In this period growth of economic activity
slowed briefly, partly in reaction to the earlier credit crunch and
a temporary suspension of investment tax credits that took place
in late 1966. Interest rate declines were also encouraged by a
shift to an expansive monetary policy. In short-term markets,
the general rate decline continued through mid-1967, but in bond
markets, rates reached their lows as early as February 1967 and
then started moving up. This latter upturn was partly anticipa
tory; it reflected concern among market participants that the
income surtax requested by the administration would not be
enacted and this would lead to large Federal deficit spending on
top of a renewal of strength already expected for the private
economy. At the same time, the volume of long-term borrowing
— in contrast to short-term financing— increased substantially
(Table 2) as borrowers tried to make up for capital market
financing foregone during the credit crunch and to anticipate
possible future shortages of funds.
Expectations of rising interest rates were in fact confirmed
after mid-1967, and rates continued to advance through the next
subperiod. Excess demand in the domestic economy and adverse
expectations engendered by events in the foreign exchange
and gold markets— beginning with the devaluation of sterling in
late 1967— were among the factors that encouraged interest
rates to rise above the peaks reached earlier during the 1966
credit crunch.
The long-delayed passage of the Revenue and Expenditure
Control Act in June 1968— which provided for a 10 per cent
surcharge on income taxes and a ceiling on Federal spending in
the fiscal year 1969— considerably improved the outlook of credit
market participants. A temporary decline in interest rates oc
curred during the summer and early fall of 1968. As in the first
half of 1967, however, the rate decline in long-term markets was
reversed sooner than that in short-term markets. With borrowers
429
INTEREST RATES SINCE 1964
TABLE 2
NET BORROWING IN SHORT- AND LONG-TERM MARKETS
Selected Periods, 1964 to 1971
In billions of dollars at seasonally adjusted annual rates unless otherwise indicated
Item
Total net borrowing1...................
Less: Funds supplied by Federal
Reserve.................................
Equals: Funds supplied by private
se ctors:................................
In short-term markets2............
In long-term markets— by type
o f instrument: ...................
Corporate & foreign bonds3.
Mortgages, net of Govt,
housing-credit support.. . .
State and local bonds..........
U.S. Govt, and Govt.-sponsored agencies, over 5
years4................................
Share (in per cent) of total supply
by private sectors:
Short-term................................
Long-term.................................
Q l 1964- Q 31965Q2 1965 Q 41966
1st H
1967
Q 31967- 2nd H
1968
Q2 1968
Year
1969
Q l 1970Q l 1971*
83.3
61.4
62.9
62.8
84.8
96.5
73.4
3.4
3.7
6.0
5.5
- .4
4.2
7.1
58.0
17.4
59.1
27.1
56.8
20.5
79.3
38.0
96.9
36.0
69.2
38.9
76.2
18.8
40.6
32 .0
36.3
41.3
60 .9
30.3
14.8
57.4
25.0
24.7
5.6
20.1
5.7
20.9
8.0
21.7
5.7
25.9
13.0
18.7
5.0
20.7
10.1
2.7
- 4 .5
- 8 .4
- 2 .5
6.1
- 8 .2
1.5
30.0
70.0
45.9
54.1
36.1
63.9
47.9
52.1
37.2
62.8
56.2
43.8
24.7
75.3
7.6
10.7
15.9
16.4
15.9
1 For derivation, see Table 3.
2 Includes mainly nonfinancial borrowing in the form of bank loans, consumer credit, open market
paper, State and local securities maturing within 1 year, and U.S. Government as well as Govt.-sponsored agency debt maturing within 5 years.
3 In addition to bonds issued by nonfinancial sectors, includes bonds issued by sales finance com
panies and commercial banks. The proceeds of such bond sales by financial sectors are netted out
in calculating short-term borrowing on the assumption that the proceeds are used to finance short-term
debt.
.;
4 Abrupt shifts in maturity classification—that arise when securities pass from the over-5-year to the
under-5-year category as a result of the passage of time—have been phased in gradually. The smoothing
technique spreads the shift over a 2-year period.
S o u r c e .—Federal Reserve flow of funds accounts.
p preliminary.
seeking to cover previously delayed financing as credit market
conditions eased, the volume of long-term debt offerings ex
panded sharply (Table 2 ). In part, this enlarged volume of capi
tal market financing also came about when borrowers sought
funds in anticipation of future needs, once it became evident
that the mid-1968 fiscal actions were not fully curbing excess
spending demands.
During 1969, interest rates moved to new record highs as the
sharp increases in rates that had begun in late 1968 continued
throughout the year with only minor interruptions. The year 1969
had larger rate increases, both absolutely and in relative terms,
than any of the other periods considered here. These rate in
creases were accompanied by a restrictive monetary policy that
resulted in a marked slowdown in the growth rate of bank credit
and the monetary aggregates. At the same time the high employ
ment Federal budget moved into surplus— a process which had
already begun after mid-1968. While initially this shift in fiscal
policy had seemed to have little effect, it subsequently contributed
to the dampening of aggregate demand, and its effect on interest
rates was in the direction of moderating upward rate pressures.
Economic expansion came to a halt in late 1969, and the
430
FEDERAL RESERVE BULLETIN □ JU N E 1971
following year was marked by recessive tendencies in output,
sales, and employment. This slowdown was counteracted by
measures that made fiscal policy more expansive— such as the
expiration of the surtax— by a quickening of growth rates in
monetary aggregates, and by substantial decreases in interest
rates that continued until late winter 1971; all this helped to set
the stage for the resumption of economic growth that has been
observable in recent months. Although the most dramatic interest
rate decreases occurred in the short-term sector, long-term rates
also declined significantly during this last period, but only after
first climbing further to reach new highs toward the middle of
1970— as pressures to rebuild depleted corporate liquidity posi
tions had mounted in the spring of 1970. Thus the declines in
long-term rates started much later than those of short-term rates.
Also, the levels of long-term rates were still unusually high rela
tive to short-term rates in the spring of 1971.
INTEREST RATES AND
CREDIT MARKET FLOWS
In explaining interest rate trends over long periods of time, econo
mists usually stress the influence of expected rates of return on
investment in physical capital and the willingness of the various
economic sectors to supply savings. A consideration of these vari
ables was implicit in some of the preceding discussion of GNP and
Federal budget developments. However, for short cyclical periods
analysts often relate interest rate movements to shifting demand
and supply conditions in the credit markets or in the stock of
liquid assets, such as money.
Evaluating the relationship of interest rate movements in the
seven subperiods to changing demand and supply conditions in
the credit markets is a complex undertaking. It is difficult to dis
tinguish between shifts in the demand for and shifts in the supply
of loanable funds in the ex post data on fund flows. For example,
an increased volume of credit may at times signify an upward
shift in demand for funds that would lead to higher interest
rates, whereas at other times an expanded flow of credit may
reflect an increased supply that would lead to lower interest rates.
Even without a separate identification of demand and supply fac
tors, however, an examination of developments in credit flows
may still contribute to an understanding of interest rate behavior.
Total borrowing. Table 3 shows the major borrowing flows at
annual rates during the seven subperiods under discussion. Total
net borrowing (line F) reflects major types of borrowing by non
financial sectors in the economy. Total credit expansion was sub-
INTEREST RATES SINCE 1964
431
stantial in all of the subperiods under review, ranging between
7.9 and 10.9 per cent of current-dollar GNP. The flows appear
to be largest in the periods when the economy was in the early or
middle phase of an upswing, as in 1964-early 1965 and the
two periods from mid-1967 to the end of 1968. Relative to GNP,
credit flows were smallest in 1969 and in the latter half of 1966
(Table 3, footnote 5 ) , when the economy was nearing the end
of an upswing and when monetary policy was most restrictive.
TABLE 3
BORROWING IN MAJOR CREDIT MARKETS
Selected Periods, 1964 to 1971
In billions of dollars at seasonally adjusted annual rates unless otherwise indicated
Line
A
B
C
D
E
F
G
Item
U.S. Govt, securities.........
Sponsored credit agencies..
Short-term non-Federal 1..
Long-term non-Federal 2..
L ess : Govt, housing-credit
support 3.........................
Equals : Total net borrow
ing by nonfinancial sec
tors and sponsored
credit agencies 4..............
Total borrowing as per cent
of GNP 5........................
Q l 1964- Q 31965Q 21965 Q4 1966
1st H
1967
Q 31967- 2nd H
1968
Q 21968
Year
1969
Q l 1970Ql 1971 ?
5.0
1.1
20.2
36.2
2.8
3.8
21.0
38.7
4.0
- 3 .0
18.3
40.7
20.5
3.3
18.5
47.0
7.2
2.2
33.3
56.3
- 3 .6
8.8
31.4
46.0
9.2
5.7
15.0
58.6
1.1
3.5
- 2 .9
4.5
2.4
9.2
5.2
61.4
62.9
62.8
84.8
96.5
73.4
83.3
9.5
8.6
8.1
10.2
10.9
7.9
8.5
1 Borrowing by nonfinancial sectors in the form of bank loans, consumer credit, open market paper,
and State and local securities under 1 year.
2Borrowing by nonfinancial sectors in the form of State and local securities other than short-term,
corporate and foreign bonds, and mortgages.
3 Net mortgage purchases of U.S. budget agencies, Federal National Mortgage Association, and
Federal land banks; and Federal home loan bank loans to savings and loan associations.
4 Borrowing by Government-sponsored credit agencies is included as a component of total borrowing
and is shown in line B. However, to the extent that such borrowing finances home mortgage lending it
is deducted in line E, since total mortgage borrowing has been included in line D.
5 During the last half of 1966, total borrowing amounted to 6.7 per cent of GNP.
S o u r c e . —Federal Reserve flow of funds accounts.
p preliminary.
In the periods when tendencies of recession and incipient re
covery were present, as in early 1967 and in the 1970-71 period,
credit flows were slightly larger than in the immediately preceding
phases of expansion. It may also be noted that the large increase
in Federal borrowing in fiscal year 1968— at a time of substantial
budget deficit at high employment— was reflected in an expansion
of total credit flows and was succeeded by an unusually large ex
pansion of non-Federal borrowing in the latter half of 1968.
Given the pattern of relatively small credit flows and rapidly
rising interest rates found in the late expansion phase of the busi
ness cycle, and intermediate-size credit flows accompanied by
falling interest rates in the two periods when the economy slowed
substantially, it is apparent that no simple relation can be formu
lated between the size of total credit flows and movements in
interest rates. The explanation would seem to lie in an interaction
of supply and demand conditions.
432
FEDERAL RESERVE BULLETIN □ JUNE 1971
Although total demands for credit tend to shrink when the
economy weakens, monetary policy at such times has generally
contributed to easier credit supply conditions. Hence total bor
rowing tended to expand even while the economy was still slug
gish. Lagged policy effects and the upturn of economic activity
have tended to lead to a more rapid increase in total credit flows
once economic expansion was well under way. Finally, in the late
expansion phases, total borrowing showed declines while interest
rates reached high levels, and credit availability was most re
stricted in reaction to efforts by monetary policy to restrain
excess demands.
Sectors supplying funds. There is a general association of in
terest rate movements with the sectoral composition of the supply
of funds in credit markets, as discussed below and shown in
Table 4. In periods when commercial banks, thrift institutions,
and the Federal Reserve System supplied the predominant por
tion of total credit, interest rates eased or tended to be stable.
TABLE 4
SECTORS SUPPLYING FUNDS IN MAJOR CREDIT MARKETS
Selected Periods, 1964 to 1971
In billions of dollars at seasonally adjusted annual rates unless otherwise indicated
Item
Q l 1964- Q 31965Q2 1965 Q 4 1966
1st H
1967
Q 31967- 2nd H
1968
Q 2 1968
Year
1969
Ql 1970Ql 1971*
Total net lending (or borrowing). .
61.4
62.9
62.8
84.8
96.5
73.4
83.3
Funds supplied directly by:
Federal Reserve Banks...........
Commercial banks, net1..........
Thrift institutions, net2............
Foreign3...................................
All other domestic sectors4. . .
3.4
23.9
15.2
.4
18.5
3.7
20.7
9.6
.2
28.6
6.0
33.9
16.5
2.4
4.0
5.5
32.1
15.4
- .6
32.4
- .4
54.1
14.7
3.8
24.3
4.2
12.2
10.2
- .3
47.1
7.1
34.9
20.3
10.9
10.1
Share (in per cent) provided by: 5
Federal Reserve, commercial
banks, and thrift institu
tions ......................................
All other domestic sectors. . . .
69.2
30.1
54.1
45.5
89.8
6.4
62.5
38.2
70.9
25.2
36.2
64.2
74.8
12.1
1 Net of bank borrowing in commercial paper market and securities market. Bank borrowing from
foreign branches has not been deducted in evaluating funds supplied by commercial banks.
2 Credit market lending by mutual savings banks, savings and loan associations, and credit unions,
net of borrowing from commercial banks and Federal home loan banks.
3 Does not include funds lent to U.S. banks by foreign branches, which in the last two periods
amounted to $7.0 and $-8.0 billion, respectively.
4 Mainly reflects private domestic nonfinancial sectors (such as households, business, and State and
local funds) and insurance companies as well as minor differences between funds lent and borrowed by
finance companies, dealers and brokers, and Government-sponsored agencies.
5 The percentages do not add to 100 because the share of foreign net lending has been omitted.
S o u r c e : Federal Reserve flow of funds accounts.
p preliminary.
But when other domestic sectors— especially households, non
financial business, and State and local governments— had to be
attracted into the securities markets to meet borrowers’ demands
for funds, interest rates increased.
Major shifts of this type in the sources of lending may develop
INTEREST RATES SINCE 1964
433
initially from either the demand or the supply side of credit. For
example, if demands for credit experience an autonomous in
crease, market interest rates would tend to rise. Such rate in
creases on market securities would need to be large enough to
attract additional lending from the “other domestic sectors.”
These higher rate levels would tend to make market securities
more attractive relative to holdings of deposits. Nominal interest
rates on demand deposits are fixed at zero, while rates paid on
savings accounts at commercial banks and thrift institutions tend
to fluctuate much less than rates on market securities, as illus
trated in Chart 2. Moreover, regulated rate ceilings on time and
savings deposits have at times constrained the ability of banks
and other depositary institutions to offer interest rates on such
deposits that are competitive with the market. In the case of
depositary institutions specializing in mortgage lending, such as
savings and loan associations, competitive interest rates often
could not be offered on savings accounts when market interest
rates rose, since the earnings of these institutions reflected in
large part the lower returns obtained on mortgages that had been
acquired before the increase in market interest rates.
Rates on SAVINGS ACCOUNTS respond
very slowly to market rates
PER CENT
Quarterly data, except monthly for commercial paper and savings at commercial banks in
April and May 1971. Weighted average offering rates on savings and loan accounts estimated
by Federal Reserve from the FHLBB quarterly survey. Weighted average interest rates paid
on savings deposits by commercial banks in the 7th District.
As a result, the more market interest rates rise, the more exten
sive the process of “disintermediation” becomes. The recent pat
terns of Euro-dollar borrowings by commercial banks from
foreign branches can be viewed as an exception to this generaliza
tion. In this case, U.S. commercial banks were bidding aggres
sively for Euro-dollar loans when interest rates rose rapidly in
1969, thus offsetting some of the curtailment of bank credit. But
434
FEDERAL RESERVE BULLETIN □ JUNE 1971
in 1970-71, when U.S. interest rates declined below the levels of
foreign rates, banks were repaying large amounts of Euro-dollar
borrowing.
The nonfinancial domestic sectors attracted to the securities
markets in periods of rising rates typically acquire a different type
of market instrument from those purchased by thrift institutions
and banks; therefore, a particular scarcity of funds tends to de
velop for certain types of loans. Mortgage funds, especially, are
not readily provided by the nonfinancial sectors; thus housing
credit is curtailed when “disintermediation” occurs. Federal and
federally sponsored credit programs have ameliorated some of
this unevenness of credit flows, as is indicated by the offsetting
fluctuations in the volume of housing-credit-support lending by
the Government, particularly in periods of general credit restraint
such as in 1969 (Table 3).
Major shifts in the share of lending being provided by different
sectors can also be initiated from the supply side. For example,
monetary policy can inject more reserves into the banking system,
thus fostering more bank credit and in this way exerting down
ward pressures on interest rates, at least in the short run. The
domestic nonfinancial sectors are then encouraged to part with
securities and to channel their financial assets into deposits and
shares at savings institutions.
SHORT-TERM INTEREST
RATES AND MONETARY
AGGREGATES
The process just described— in which the nonfinancial sectors
become important direct lenders in credit markets when interest
rates are rising and high, while banks and savings institutions
become more predominant in supplying credit funds when rates
are falling and low— is reflected for the most part in movements
of the monetary aggregates that measure selected sets of liabilities
of banks and thrift institutions.
A rough correspondence in movements between measures of
credit supplied by banks and thrift institutions and the monetary
aggregates is to be expected, since there is a considerable amount
of overlap between data taken from the credit side of these insti
tutions’ balance sheets and data that represent their major liabili
ties. However, the monetary aggregates also measure particular
types of liquid assets held by the public, and this is the major
focus of the various concepts of money stock.
The narrowly defined money stock (M i)— that is, currency
and demand deposits (other than U.S. Government and inter
bank)— has the least direct correspondence to credit data on the
INTEREST RATES SINCE 1964
435
asset side of the balance sheet, since commercial bank time
and savings deposits constitute a major share of the total liabilities
of the banking system. However, since the narrowly defined
money stock has the special characteristic of comprising the
generally accepted medium of exchange, economists have been
particularly interested in investigating the association between
this type of liquid asset and other economic magnitudes.
Short-term market interest rates are frequently considered as
the opportunity cost of holding or obtaining money, both for
potential financial investors and for borrowers. Borrowers have
to pay this rate as the price for money, and lenders can earn this
rate if they are willing to give up money. Since short-term debt
instruments are relatively free of market price risk, they are also
considered “liquid” and hence are good money substitutes.
For some types of investors, however, savings accounts may
be better substitutes for Mi than are market securities. A 1968
FDIC survey showed that 35 per cent of the dollar amount of
demand deposits held by individuals, partnerships, and corpora
tions were in accounts smaller than $10,000; for many of these
holders savings accounts would tend to be a more realistic alterna
tive to demand deposit holdings than short-term marketable
instruments. Rates on savings accounts for these holders would
be a better measure of the cost of holding money than the yields
on short-term market securities.
The public’s demand for money balances can be thought of
as depending on transaction needs and interest rate levels as well
as on a number of other specific influences, some of which are
difficult to isolate and will not be considered here. Transaction
needs can be represented in a very rough fashion by the currentdollar value of GNP on the simplifying assumption that financial
and intermediate transactions that are not included in GNP would
tend to grow at a similar rate to GNP. When GNP is divided
by the current stock of money, the “income velocity” of money is
obtained and this velocity ratio then provides some rough allow
ance for the volume of transactions for which money is used.
Data for money velocity, as shown in Table 5, permit a direct
examination of the relationship between money stock and inter
est rates.
When velocity increased substantially, during the subperiods
in Table 5, short-term interest rates were tending to increase also.
In periods when velocity increased only moderately, remained un
changed, or declined, short-term interest rates remained about
436
FEDERAL RESERVE BULLETIN a JUNE 1971
TABLE 5
CHANGES IN THE INCOME VELOCITY OF MONEY
AND SHORT-TERM INTEREST RATE MOVEMENTS
Time period
Velocity
of M il
Q4 1963.................
Ql 1964-Q2 1965..
Q3 1965-Q4 1966..
1st H 1967.............
Q3 1967-Q2 1968..
2nd H 1968...........
Year 1969..............
Ql 1970-Ql 1971..
3.95
4.16
4.50
4.46
4.55
4.55
4.68
4.70
Q4 1963-Ql 1971..
4.70
Rate of
increase in
velocity 2
Movement in
short-term
interest rates
3.5
5.5
- .2
2.0
2.9
.3
slightly increasing
increasing
decreasing
increasing
about unchanged
increasing
decreasing
2.4
slightly increasing
1 Terminal quarter GNP, at annual rates, divided by average stock
of currency and demand deposits for that quarter.
2 Percentage change at annual rate.
unchanged or tended to fall. During the entire period from the
end of 1963 to the first quarter of 1971, velocity increased at an
annual rate of 2.4 per cent but short-term interest rates at their
recent lows were only slightly higher than in late 1963. This may
indicate, in a rough manner, that there were some economies in
the use of money over this period so that some of the increasing
trend in velocity could represent efficiencies in the management
of cash balances. Alternatively, some of the increasing trend in
velocity could also reflect the general rise in the interest rates
paid on time and savings accounts.
It should be noted that the relationships among GNP, money
stock, and short-term interest rates represent a complex interacn
J
Broad conformity of movement appears despite diversities in
SHORT-TERM RATES
PER CENT
1965
1967
Monthly averages except for bank prime rate.
1969
'71
INTEREST RATES SINCE 1964
437
tion. All of these three variables act on one another rather than
having only bilateral relationships. Growth in the money stock
has a short-run effect in reducing interest rates, making credit
more easily available, and making the asset holdings of the public
more liquid. These effects stimulate transactions and GNP. The
larger GNP— whether in the form of additional product or higher
prices— in turn increases interest rates and money demand.
Of course, the presentation in Table 5 has been oversimplified
in many respects. Lagged relationships have been neglected, al
though most econometric work has found that actions by holders
of money to adjust their balances lag behind growth in the vol
ume of transactions as well as changes in interest rates. Table 5
thus is merely illustrative of a general approach taken in investi
gating the relationship between money stock and interest rates.
Expectations represent still other factors that influence the
demand for money and short-term interest rates. For instance,
expectations about economic developments or about monetary
policy influence short-term rates. The strong reaction sometimes
observable in short-term rates to changes in the Federal Reserve
discount rate, for example, takes place largely because a discount
rate change may at times be viewed by the market as an indicator
of the likely future course of monetary policy.
Inflationary expectations, however, have a smaller impact on
short-term rates than on long-term interest rates. To the extent
4 | LONG-TERM RATES exhibit a common trend
PER CENT
Monthly averages. Seasoned State and local govt, bonds (20 issues, mixed quality), Bond
Buyer; FHA series (new homes) on average contract interest rates on conventional first
mortgages in primary markets; U.S. Govt, security yields as estimated from yield curve.
438
FEDERAL RESERVE BULLETIN □ JUNE 1971
that large investors consider deposit holdings and short-term
marketable instruments as their major alternatives for the place
ment of liquid reserves, neither of these alternative holdings offers
protection against inflation. Thus the influence of inflation on
short-term interest rates is exerted mainly by the expansion of the
current dollar value of transactions, rather than by changing the
incentives to substitute between deposits and short-term securities.
MOVEMENTS IN LONGTERM INTEREST RATES
On the average, the level of long-term rates has been historically
somewhat higher than that of short-term rates due to a preference
for liquidity by lenders. In general, long-term market rates have
tended to move in the same direction as short-term rates, but their
amplitude of change has been smaller. As a result of the greater
volatility of short-term rates, long-term rates for instruments
that are similar in all respects except maturity have frequently
been below the corresponding short-term rates during periods
when interest rates were at cyclical peaks, and they have been
substantially higher than short-term rates when interest rates
were unusually low.
This standard pattern of relationships between long- and short
term rates prevailed in the period from 1963 to late 1966. As
shown in Chart 5, the spreads between long- and short-term rates
c
3
SPREADS between long- and short-term
rates ALTER OVER TIME
PER CENT
Based on quarterly averages, except monthly for April and May 1971.
INTEREST RATES SINCE 1964
439
declined significantly during this period as short-term rates were
rising. Thereafter, however, the standard relationship did not
hold up well. Long-term yields remained higher than short-term
interest rates in mid-1968, even though short-term rates had
reached a new peak. In 1970 and early 1971, when short-term
interest rates were falling, some of the large increase in yield
spreads did conform to the usual relationships between long
term and short-term rates. However, the extent to which spreads
have widened has been unusually large. In summary, it would
seem that long-term rates have had an upward shift relative to
short-term rates since early 1967 in comparison to their usual
historical relationship.
The wider spread between short- and long-term rates in recent
years is frequently attributed to changed expectations about the
future course of prices of goods and services. When entering into
financial contracts that terminate many years hence, lenders and
borrowers must naturally make some evaluation of the range of
possible alternatives over the life of the contract. In making such
evaluations during the past few years, investors appear to have
become more concerned about expected general price increases.
When such concerns are strong, investors believe it to be unprofit
able to advance funds to bond markets except at high yields.
The pattern of credit demands by borrowers is, of course, also
influenced by expectations. In 1970 and early 1971 large de
mands for long-term funds by borrowers have contributed to the
relatively high levels of long-term yields. As is shown in Table 2,
the demand for long-term funds has been unusually large in the
period from 1970 to early 1971, especially in comparison to the
quantity of short-term funds demanded. As was noted earlier,
demands in the long-term sectors of the credit market also had
increased substantially in early 1967 and late 1968 when
interest rates were declining from their preceding peaks. In these
earlier periods the declines in interest rates became short-lived:
markets had tightened initially in reaction to backlog and
anticipatory borrowing demands in the long-term sector; some
what later short-term borrowing demands also had increased due
to vigorous expansion of the economy that provided full-poten
tial activity and intensified inflationary pressures.
Recent yield behavior suggests that inflationary expectations
are probably imbedded to a considerable extent in the yield
spreads between long- and short-term maturities and to a lesser
extent in the level of all interest rates, as already indicated, Invest
ors in short-term marketable assets frequently are anxious to
maintain the liquidity of their investment, and there are no good
outlets for investment of short-term funds that hedge against
inflation. Some long-term investors, however, can find alternative
inflation-hedged assets, such as corporate equities and real estate
— and can also shift temporarily to short-term assets, when they
become apprehensive about the risk of capital losses in the bond
markets.
LOWER-GRADE BONDS still demand
sizable yield premiums
MOODYS Baa LESS Aaa ON SEASONED ISSUES
PER CENT
1.5
10
----------------------^
1963
1965
1967
5
1969
’71
0
Based on quarterly averages, except monthly for April and May 1971. Composite averages
of seasoned bonds compiled by Moody’s Investors Service.
Another feature of current yield spreads is the large difference
between the rates on prime- and lower-grade bonds. The yield
spread between Baa-rated corporate bonds and Aaa-rated bonds,
in the market for seasoned issues, increased since about the
time of the filing for bankruptcy of a major railroad last year (see
Chart 6 ). These spreads usually increase in periods of economic
recession when uncertainty increases; during the most recent
months— perhaps as a reaction to the signs of economic recovery
— these spreads have narrowed.
□
440
Staff Economic Studies
The research staffs of the B oard of G over
nors of the Federal R eserve System and of
the Federal R eserve Banks undertake studies
that cover a w ide range of econom ic and
financial subjects , and other staff m em bers
prepare papers related to such subjects. In
som e instances the Federal R eserve System
finances sim ilar studies by m em bers of the
academ ic profession.
From tim e to tim e the results of studies
that are of general interest to the econom ics
profession and to others are sum m arized— or
they m ay be printed in full— in this section
of the B u l l e t i n .
S tu d y
In all cases the analyses and conclusions
set forth are those of the authors and do not
necessarily indicate concurrence by the
B oard of G overnors , by the Federal R eserve
Banks , or by the m em bers of their staffs .
Single copies of the full text of each of
the studies or papers sum m arized in the
B u l l e t i n are available in m im eographed
form . The list of Federal R eserve B oard
publications at the back of each B u l l e t i n
includes a separate section entitled uStaff
E conom ic Studies” that enum erates the stud
ies for which copies are currently available
in that form .
S u m m a r ie s
THE RELATIVE IMPORTANCE OF MONETARY AND FISCAL VARIABLES
IN DETERMINING PRICE LEVEL MOVEMENTS: A NOTE
Peter S. Rose and Lacy H. Hunt 11— Staff, Federal Reserve Bank of Dallas
Published in The Journal of Finance, vol. 26, no. I, M arch 1971
One of the most perplexing problems of
recent months has been the persistence of
strong inflationary pressures. These pres
sures have continued despite restrictive
monetary measures and a policy of fiscal
restraint enforced by higher marginal in
come tax rates through mid-1970 and a sub
stantial budget surplus during fiscal 1969.
The persistence of inflationary pressures in
the face of these restrictive conditions argues
for further study of the importance of mone
tary and fiscal measures, as well as other
factors, in explaining price level movements.
Surprisingly little work has been done in this
area, although considerable research in re
cent years has been devoted to measuring
the comparative impact of monetary and
fiscal variables on gross national product and
other measures of business activity.
In this paper a linear model is constructed
with expectational, cost, monetary, and fiscal
arguments to explain percentage changes in
the consumer price index and the implicit
GNP price deflator for the years 1952-68.
The study was intentionally confined to the
period following the Treasury-Federal Re
serve accord in order to escape the con
straints imposed on discretionary monetary
policy by the pegging of interest rates in
the earlier postwar years. The variables
used to explain price level movements in
cluded labor costs per unit of output in
441
442
manufacturing, the monetary base, highemployment Federal expenditures, and a
four-quarter weighted average of past rates
of change in the price level. All were sea
sonally adjusted quarterly observations.
While the results varied somewhat with
the price index used, the fiscal variable was
consistently the most important policy vari
able for price level changes during 1 9 5 2 68. Moreover, the initial impact of highemployment Federal expenditures was regis
tered quickly and, in the case of consumer
prices, its influence was reasserted in quar
FEDERAL RESERVE BULLETIN □ JUNE 1971
terly periods lagged more than 1 year. In
contrast, the monetary variable displayed
only a marginal effect. This result suggests
that short-term changes in monetary growth
may have only a mild direct impact on
changes in prices. The expectations proxy
exerted a significant influence when lagged
at least a full year. This result implies that
a lag of at least 1 year is required for con
sumers to adjust their expectations to current
price level changes— a factor that tends to
counteract stabilization efforts in the short
run.
□
ESTIMATION OF THE INVESTMENT AND PRICE EQUATIONS
OF A MACROECONOMETRIC MODEL
Robert J. Shiller— Massachusetts Institute of Technology
This paper was prepared under a grant from the Social Science Research Council in connection with a continu
ing study of the impact of monetary policy directed by the SSRC Subcommittee on M onetary Research. This
research effort is sponsored by the Board of Governors of the Federal Reserve System. The paper was presented
at a conference of the Subcommittee, Washington, D .C., A pril 30, 1971.
Macroeconometric models have often in
cluded investment and price equations that
involve either theoretical inconsistencies or
contradictory assumptions. This paper dis
cusses some of these problems. Then, a
rigorous model is developed that, although
it is based on conventional assumptions, is
elaborated further than is usual in certain
respects to point out some of the relation
ships that should obtain among different
equations.
An investment function for producers’
durables, a similar function for producers’
structures, and a price equation are all
derived from a-single model of cost-minimiz
ing behavior. The three equations share a
number of parameters: Each equation con
tains implicitly all the production function
parameters. Each equation involves rents
of all three factors, which should be com
puted the same way for the different equa
tions. The interest rate enters all three
equations through a single expression for the
cost of capital.
It is possible to change the investment
equations to eliminate the production func
tion parameters and rents of other factors
only by adding assumptions beyond that of
cost-minimizing behavior. For Jorgenson,
this was the assumption of profit maximiza
tion with decreasing returns subject to a
horizontal demand function; with Bischoff,
the additional assumption was a strict
mark-up hypothesis. After discussion, it is
concluded that it would be best to avoid us
ing these assumptions. There is no strictly
correct way to simplify the price equation.
On the other hand, as long as one is
willing to consider a joint estimation proce
dure for the three equations, there is no
need to simplify the equations. In fact, since
the production function parameters must be
STAFF ECONOMIC STUDIES
estimated somewhere and are important to
the model in simulations, the joint estima
tion procedure may be justified on efficiency
grounds even if, for instance, the strict
mark-up hypothesis is granted.
The model developed here was made to
conform, in most respects, to the theoretical
foundations of the M .I.T.-Penn-S.S.R.C.
(MPS) econometric model of the United
States, and the equations were estimated
from data used in that model. The sample
was quarterly, extending from 1953 to 1970.
Since the assumptions made here are, except
for details, less restrictive than those of the
corresponding equations of the MPS model,
the procedure here can also be viewed as
providing estimates of the production func
tion assumed by the MPS model— no such
estimate is implicit in the present version
of the MPS model. The results were for the
443
most part encouraging, since the produc
tion function estimates are quite reasonable.
The paper also includes a brief discus
sion of the estimation technique used. The
joint estimation procedure is conventional,
except that a simple and convenient way of
implementing it— useful in large models—
is employed. The procedure has two stages.
The first is ordinary least squares, from
which appropriate columns of the variancecovariance matrix, as well as the coefficients
and their standard errors, are saved. These
single-equation results are then combined,
equation by equation, to provide joint esti
mates and their standard errors. The dis
tributed lag estimation procedure, which
does not parametrize the lag curve, is based
on first-degree smoothness priors. Such
Bayesian priors reflect the coherence of the
lag shapes that the theory suggests.
□
Member Bank Income, 1970
Member bank net income after taxes in
creased substantially in 1970, although less
rapidly than the record pace of 1969. D e
spite the easing of monetary policy in 1970,
the average rate of return on bank earnings
assets increased somewhat as compared with
the average in 1969. And with credit condi
tions easier, banks were able to expand their
earning base; holdings of both loans and in
vestments rose during the year. In this frame
work, total operating income of banks
moved upward. Although operating ex
penses also showed a sizable increase during
the year, the growth in revenue exceeded
that in expenses, and net income of member
banks rose to a level exceeding that in any
previous year.
SUMMARY
The largest single factor in the rise in total
operating income at member banks in 1970
— as in other recent years— was earnings
from loans, which accounted for about
three-fifths of the total increase. In 1969
when growth in total bank credit was limited
by monetary policy, loan income amounted
to nearly nine-tenths of the increase in op
erating revenue. To meet the strong demand
for loans by their customers, banks had
liquidated investments, on balance, to pro
vide funds for lending. With a slowing of
economic activity and a weakening of loan
demand in 1970, accompanied by some eas
ing of monetary policy, banks vigorously
expanded their holdings of securities of State
and local governments and U.S. GovernN ote.— This article was prepared by Caroline H.
Cagle of the Board’s Division o f Research and
Statistics.
ment agencies and corporations. Income
from investment portfolios accounted for
nearly 20 per cent of the increase in member
bank operating revenue in 1970; when net
income from trading account is included,
the figure rises to 27 per cent. In 1969 in
come from these sources had accounted for
only 6 per cent of the total increase in oper
ating revenue. A major part of the improve
ment in income from investment account in
1970 was the higher average rate of return
realized on these securities.
Operating expenses rose less in dollar
amount but at a more rapid rate than reve
nue. All types of expenses registered some
growth except interest on borrowed money.
With the sharp decline in short-term interest
rates in the United States in 1970, many of
the largest banks shifted from high-cost
Euro-dollar borrowing to domestic borrow
ing. By doing so these large banks in particu
lar were able to moderate the growth in their
over-all operating expenses.
The expense that ate most heavily into
bank profits in 1970 was interest paid on
time and savings deposits. Ceiling rates pay
able on all forms of time and savings de
posits were raised in early 1970, and in midJune the ceiling rates were suspended on
large-denomination time deposits with ma
turities of 30 to 89 days. Most member
banks quickly responded by increasing their
offering rates on these types of deposits. Be
cause short-term market rates of interest
were declining, commercial banks were able
to attract huge inflows of deposits, particu
larly large negotiable certificates of deposit.
Bank profits were also dampened by much
larger losses on loans. The provision for loan
445
446
losses— that portion of loan losses deducted
as an expense from current operating
income— rose by 40 per cent in 1970, com
pared with an increase of only 11 per cent
in 1969. Actual net loan losses for all mem
ber banks in 1970 were more than double
those in 1969.
Most of the remaining growth in operat
ing costs in 1970 came from higher salaries
and wages and employee benefits. These ex
panded at about the same rate as in 1969.
Taxes applicable to operating income
were 2 per cent lower, and net security losses
(after taxes) were nearly 50 per cent less, in
1970 than in 1969.
Net income (after security losses, extraor
dinary charges, and all taxes) of $3,823 mil
lion was 10.8 per cent higher than in 1969.
Relative to equity capital plus reserves, net
income was 10.4 per cent— up somewhat
from the preceding year. Net income as a
percentage of total capital accounts,1 one
of the standard bases for comparing net in
come in years prior to 1969 was 11.5 per
cent— higher than in any previous year.
Cash dividends declared amounted to
$1,754 million in 1970— substantially
above the preceding year. The ratio of divi
dends to equity capital and reserves was
4.79 per cent.
OPERATING INCOME
Member bank operating income rose to
$27,913 million in 1970— $2,922 million,
or 12 per cent, above the 1969 level (Table
1). This compares with a growth of 20 per
cent in 1969. As in other recent periods of
monetary ease, the composition of bank
revenue reflected an increased contribution
of income from securities.
Both an increase in loans outstanding and
a higher average rate of return helped to
push income from loans (including Federal
'T otal capital accounts include equity capital and
capital notes and debentures but exclude reserves on
loans and securities.
FEDERAL RESERVE BULLETIN □ JUNE 1971
funds sold and securities purchased under re
sale agreement) to a record level of $19,487
million— 10 per cent above 1969, but far
below the 26 per cent increase registered in
1969. Loans to business, to agriculture, and
to consumers (other loans to individuals)—
as well as real estate loans— rose by 3 to 5
per cent in 1970, whereas all other loans rose
by nearly 10 per cent (Table 2 ). The last
group, which includes the amount of Federal
funds sold and of securities purchased under
resale agreement, rose by 54 per cent in
1970, reflecting in part a shift in bank bor
rowing from Euro-dollars to Federal funds.
Income from the sale of Federal funds (and
securities purchased under resale agree
ment) rose to $781 million— $132 million,
or 20 per cent above the level of 1969.
The average rate of return on all loans
(including Federal funds sold) rose 34 basis
points to 7.91 per cent in 1970 (Table 3 ),
despite five reductions that moved the prime
rate from 8 Vi to 63A per cent. During most
of the first half of the year the prime rate
remained well above the year-earlier level,
and it was not until later in the year that
there was a large dip below the year-earlier
level. Moreover, there was some increase in
the average rate of return on all loans as
banks replaced low interest rate loans made
prior to 1969 with new loans at 1970 in
terest rates and as the large volume of term
loans— those with maturities over 1 year—
made in 1969 at the high prevailing rates
remained in bank loan portfolios.
While income from loans was rising, losses
sustained by banks on loans rose more rap
idly than in any year since the 1930’s. Actual
net losses— derived from the data reported
by banks— amounted to $802 million in
1970.2 Such losses represented 0.33 per cent
“This is the sum of (1 ) net losses charged to re
serves for losses on loans for banks reporting on a
reserve-accounting method (most banks report on this
basis) and (2 ) the amount reported as current
operating expense item “provision for loan losses”
for all other banks.
447
MEMBER BANK INCOME, 1970
of average loans outstanding in 1970— twice
the comparable figure for 1969 and greater
than for any other year since 1939. About
two-thirds of these losses occurred at large
reserve city banks and a significant portion
of this total is believed to represent chargeoffs related to the reorganization of a major
railroad under the bankruptcy act. Larger
losses on credit cards also contributed to
higher loan losses. A preliminary tabulation
of figures for all member banks for 1970 in
dicated that the dollar amount of net charge-
offs on credit cards was about double that in
the preceding year.
Banks also earned large sums from their
expanded holdings of securities in 1970. In
come from the investment portfolio
amounted to $4,832 million— up $569 mil
lion, or 13 per cent. Supplementing this fig
ure was net income derived from trading
account transactions, which rose by $209
million, or 153 per cent. On securities held
in the investment portfolio the most rapid
expansion in earnings was on U.S. Govem-
TABLE 1
CONSOLIDATED REPORT OF INCOME FOR 1970 AND 1969 FOR ALL MEMBER BANKS AND
RESTATEMENT OF 1968 DATA TO REVISED 1969 CONCEPT
Change,
1969-70
Amount,
in millions of dollars
Operating income—Total.......................................................................................
Loans:
Interest and fees..............................................................................................
Federal funds sold and securities purchased under resale agreement........
Securities:
Excluding trading-account income—total....................................................
U.S. Treasury securities.............................................................................
U.S. Govt, agencies and corporations......................................................
States and political subdivisions................................................................
Other securities...........................................................................................
Trust department................................................................................................
Service charges on deposit accounts.................................................................
Other charges, fees, etc.......................................................................................
Other operating income:
On trading account (net)...............................................................................
Other................................................................................................................
.In
1970
1969 r
1968
(Restated
and partly
estimated)
millions
of
dollars
27,913
24,991
20,819
2,922
11.7
18,706
781
17,104\
649/
14,143
1,602
132
9.4
20.3
4,832
2,208
415
2,090
118
1,075
868
681
4,263
2,041
322
1,794
106
972
835
557
880
803
371
569
167
93
296
12
103
33
124
13.3
8.2
28.9
16.5
11.3
10.6
4.0
22.3
346
625
137
473
486
209
152
152.6
32.1
22,193
*2,208
*1,929
Per
cent
19,525
16,189
2,668
13.7
Salaries and wages of officers and employees..................................................
Officer and employee benefits............................................................................
Interest on—
Time and savings deposits.............................................................................
Federal funds purchased and securities sold under repurchase agreements
Other borrowed money..................................................................................
Capital notes and debentures.........................................................................
Net occupancy expense......................................................................................
Furniture, equipment, etc..................................................................................
Provision for loan losses....................................................................................
Other operating expenses...................................................................................
5,282
876
4,690
749
4,097
633
592
127
12.6
17.0
8,139
1,365
444
90
1,013
722
534
3,728
17,059
1,1771
562 j
89
867
615
381
3,336
i 6,803
2 559
95
783
506
2 343
2,370
1,080
188
-118
1
146
107
153
392
15.3
16.0
- 2 1 .0
1.1
16.8
17.4
40.2
11.8
Income before income taxes and securities gains or losses.................................
Applicable income taxes.........................................................................................
Income before securities gains or losses...............................................................
Net securities gains or losses ( —) after tax..........................................................
Extraordinary charges ( —) or credits after taxes................................................
Less minority interest in consolidated subsidiaries............................................. .
Net income.............................................................................................................
Cash dividends declared 4.....................................................................................
5,720
1,775
3,945
-1 0 7
-1 5
( 3)
3,823
1,754
5,467
1,813
3,653
-209
5
( 3)
3,450
1,523
4,630
2 1,479
3,151
2 -1 8 9
n.a.
n.a.
2,962
2 1,299
253
-3 8
292
-1 0 2
-20
4.6
- 2 .1
8.0
- 4 8 .8
400.0
373
231
10.8
15.2
Operating expenses—Total....................................................................................
1 This item excludes, and “interest on other borrowed money”
and “ other operating expenses” include, the following estimated
amounts of interest on Euro-dollar borrowing incorrectly reported
as interest on time and savings deposits: 1968—$305 million; 1969—
$101 million.
2 Because of the substantial changes in reporting beginning in 1969,
it was necessary to restate the 1968 figures to conform as closely as
possible with 1969 and 1970 reporting procedures. Some figures were
wholly or partly estimated. For the methods used in estimation and a
description of the 1969 changes in reporting, see Federal Reserve
B u l l e t in for July 1970, pp. 564 ff.
3 Less than $500,000.
4 On common and preferred stock,
n.a. Not available.
r Revised.
* Includes income from trading accounts shown in other operating
income in 1969 and 1970.
N o t e .—Figures may not add to totals because of rounding.
FEDERAL RESERVE BULLETIN □ JUNE 1971
448
TABLE 2
CHANGES IN MEMBER BANK AVERAGE LOANS,
INVESTMENTS, DEPOSITS, AND CAPITAL OUT
STANDING IN 1970
Amounts shown in millions of dollars
Item
Average
am ount1
1969r
Total loans and investments,
gross2...................................
Amount
Per
centage
13,921
4.2
3,317
8,290
4,136
299
1,605
54.2
3.6
4.5
4.9
3.1
-787
899
1,901
236
- 8 .8
5.8
4.0
3.7
39,256 -2,001
- 4 .9
1970
332,879 346,800
Federal funds sold and se
curities purchased under
9,433
6,116
resale agreement.................
Other loans............................. 228,386 236,676
Commercial and industrial. 92,277 96,413
Agricultural.........................
6,152
6,451
Real estate...........................
52,069 53,674
For purchasing and carrying
8,118
8,905
securities...........................
To financial institutions... .
15,436 16,335
Other loans to individuals.. 47,081 48,982
6,702
All other..............................
6,466
U.S. Treasury securities3........
U.S. Govt, agency and cor
poration securities 3 .........
States and political subdivi
sion securities3....................
Other securities3.....................
Trading account securities4 ..
Total deposits.........................
Time deposits.........................
Savings.................................
Other time I.P.C.................
All other tim e.....................
Equity capital5.......................
Total capital accounts6 ..........
Reserves on loans and secur
ities......................................
Total equity capital and re
serves ...................................
41,257
Change
5,541
6,324
783
14.1
46,419
1,892
3,268
49,348
1,877
3,886
2,929
-1 5
618
6.3
- .8
18.9
350,799 360,721
157,902 163,610
74,828 74,254
64,035 68,526
19,039 20,830
9,922
5,708
-574
4,491
1,791
2.8
3.6
- 0 .8
7.0
9.4
1,996
1,997
6.8
6.4
29,314
31,114
31,310
33,111
4,832
5,282
450
9.3
34,146
36,592
2,446
7.2
crease of 67 basis points in the average rate
of return. Thus total income from Treasury
issues rose by 8 per cent compared with a
decline of about this proportion in 1969.
Earnings from other sources, which make
up a little more than one-tenth of all the
operating revenue of banks, expanded by
14 per cent in 1970. A sizable part of the
increase reflected trust department income,
which continued its steady upward move
ment to a total of $1,075 million. This was
11 per cent greater than in 1969. Service
charges on deposit accounts ($868 million)
produced only a little more income than in
1969, but other charges, fees, and so forth
rose by $124 million, or 22 per cent.
The latter category includes a wide variety
of collection and exchange charges and com
missions and fees; among these are income
from equipment leasing and from certain
types of loan servicing. Other operating
income (excluding trading account income)
totaled $625 million— $152 million, or 32
per cent, above the 1969 figure. About oneTABLE 3
SELECTED MEMBER BANK INCOME RATIOS
r R e v is e d .
1 Averages of figures for three call dates—the end of the preceding
year and the June 30 and December 31 call dates for the calendar year.
For 1969 the data for June 30 and December 31 were reported on a
consolidated basis; data on a consolidated basis were not available for
Dec. 31, 1968.
2 Includes securities held in trading account.
3 Excludes securities held in trading account.
4 Figures for securities held in trading account for Dec. 31, 1968,
were estimated.
5 Includes common stock, preferred stock, surplus, undivided
profits, and reserves for contingency and other capital reserves.
6 Includes equity capital plus capital notes and debentures.
ment agency securities and State and local
obligations: $93 million (29 per cent) and
$296 million (17 per cent), respectively.
This reflects larger holdings and higher
average rates of return than in 1969. For
U.S. Government agency securities the aver
age rate of return increased by 74 basis
points to 6.55 per cent; for State and local
obligations, by 36 basis points to 4.23 per
cent. While average holdings of U.S. Trea
sury securities declined by nearly 5 per cent
in 1970, this was more than offset by an in
In per cent
Ratios
Ratios to equity capital (including
reserves):
Income before securities gains or
1970
1969r
19681
Net income......................................
Cash dividends declared2...............
10.75
10.44
4.79
10.70
10.10
4.46
10.04
9.43
4.14
Rates of return on—
Loans, gross....................................
U.S. Treasury securities3...............
U.S. Govt, agencies and corpora-
7.91
5.62
7.57
4.95
6.66
4.79
State and local govt, obligations3. .
Other securities3.............................
6.55
4.23
6.30
5.81]
3.87 4.13
5.59J
3.67
Interest on time deposits to total
time deposits....................................
4.98
•■4.47
*•4.36
r Revised.
1 Data for 1968 are not entirely comparable with those for 1969 and
1970 because of changes in reporting procedures. See B u l l e t in for
July 1970, pp. 571 and 572.
2 On common and preferred stock.
3 Ratios for 1969 and 1970 based on bank’s own investment ac
count—excluding trading account. Ratios for 1968 include trading
account.
N o t e .— These ratios were computed from aggregate dollar amounts
of income and expense items. The capital, deposits, loans, and secur
ities items on which the ratios were based were averages for two call
dates in the calendar year and the last call date in the preceding year.
For Dec. 31, 1968, the amount of trading account securities was not
reported separately, but such holdings were estimated.
MEMBER BANK INCOME, 1970
fifth of this increase represented larger net
earnings from foreign branches, which ex
panded by nearly one-third in 1970.
OPERATING EXPENSES
Operating expenses of member banks rose at
a more rapid rate than revenue in 1970.
Such expenses totaled $22,193 million and
were nearly 14 per cent above 1969.
A major part of the increase was the
larger amount of interest paid on time and
savings deposits. The increase in this item
accounted for two-fifths of the growth in all
operating expenses. After the early 1970 rise
in the maximum permissible rates payable
by commercial banks on savings and other
time deposits, most member banks, particu
larly the larger ones, pushed their offering
rates to ceiling levels. Shortly thereafter,
savings and consumer-type time deposits
began to expand at banks, and in general
such deposits rose throughout the rest of the
year. Even though ceiling rates on large
CD’s had been raised in January, banks
could sell only a limited volume of such in
struments because interest rates on compet
ing money market instruments remained
significantly above the rates that banks were
permitted to offer. But after the suspension
in late June of the Regulation Q ceiling on
large-denomination time deposits maturing
in 30 to 89 days, banks quickly raised their
offering rates on such instruments to com
petitive levels. Net sales of these deposits
jumped sharply in the latter part of 1970.
Toward the end of the year bank offering
rates on these large deposits were lowered
to bring them more in line with declining
market rates on competing instruments, but
interest rates on passbook savings and consumer-type CD’s generally remained at or
near ceiling levels.
Reflecting these developments, the aver
age interest rate paid on all time and savings
deposits rose by 51 basis points to 4.98 per
449
cent in 1970. This, coupled with the in
crease in the volume of deposits, raised total
interest payments on time and savings de
posits to $8,139 million— $1,080 million, or
15 per cent, more than in 1969.
As funds became more plentiful at home
and U.S. short-term interest rates dropped
sharply, banks— mainly the largest institu
tions— began to substitute funds obtained
from domestic sources for high-cost Euro
dollar borrowing. They obtained some of
these funds from Federal funds purchases
and securities sold under repurchase agree
ments. Interest paid on such purchases at all
member banks increased by $188 million,
or 16 per cent, in 1970. This was partly off
set by a reduction of $ 118 million in the cost
of other borrowed money.3
Salaries and wages, the second largest
expense item for banks, rose by $592 mil
lion to $5,282 million in 1970. This was an
increase of about 13 per cent and reflected
a growth of 6 per cent in the number of
officers and employees and about the same
increase in average salaries and wages.
Officer and employee benefits continued to
expand faster than salaries. This item rose to
$876 million— 17 per cent above the 1969
total.
Provision for loan losses contributed
heavily to bank expenses in 1970. The total
was $534 million, or 40 per cent more than
in 1969. This compares with a growth in
average loans of less than 5 per cent. For
banks that operate on a reserve-accounting
method— and most of them do— the provi
sion for loan losses is an estimate of their
average loan losses in recent years (deter
mined by methods prescribed by supervisory
3 These figures do not reflect the full extent of the
decline in interest paid on borrowed money in 1970,
since the cost of Euro-dollar borrowing— when such
borrowing is from the bank’s own foreign branches—
is shown in “other operating expenses.” For reserve
city banks in New York City “other operating ex
penses” declined in 1970, as shown in Table 4, but
this decline was offset by increases in this item at
banks outside New York City.
450
authorities); for these banks all losses on
loans sustained during the year must be
charged against the reserve for losses on
loans. For the relatively few banks that do
not operate on a reserve-accounting method
— less than 300 small institutions— the pro
vision for loan losses— shown as an operat
ing expense— represents actual net loan
losses for the year.
Other operating expenses amounted to
$5,463 million. Of this total, $1,735 million
represented net occupancy expenses and fur
niture, equipment, fixtures, and so forth.
These were about 17 per cent higher than in
1969. All other operating expenses— $3,728
million— were about 12 per cent above the
year-earlier total.
OTHER TRANSACTIONS
Net losses on securities (before taxes)
amounted to $225 million in 1970— less
than half as much as in 1969. Because these
losses reduce net income from current opera
tions for tax purposes, the after-tax effect of
security losses was $107 million, or about
3 per cent of net income before security gains
or losses. Extraordinary charges and mi
nority interest in consolidated subsidiaries
were negligible in 1970, as in the preceding
year.
FEDERAL RESERVE BULLETIN □ JUNE 1971
securities transactions and tax-deductible
transfers from capital accounts to reserves
for losses on loans lowered the amount of
bank tax liability by $295 million. Tax re
ductions from these two sources had aggre
gated $590 milion in 1969.
NET INCOME AND CASH DIVIDENDS
The $3,823 million in member bank net
income after taxes in 1970 was $373 mil
lion, or 10.8 per cent, higher than in 1969.
This represented a rate of return on equity
capital (including reserves) of 10.44 per
cent— 34 basis points above the ratio for
1969.
Net income as a percentage of total capi
tal accounts— a figure used in years prior to
1969 as a measure of bank profitability—
was 11.5 per cent in 1970. This compares
with 11.1 per cent in 1969, and with the
previous record of 10.9 per cent established
in 1945. It should be noted, however, that
the 1969 and 1970 figures are not entirely
comparable with those for prior years be
cause of the effects of consolidation of earn
ings of domestic subsidiaries and of shifts by
some banks from cash to accrual accounting
beginning in 1969— for both of which no
adjustments could be made.
NET INCOME BY CLASS OF BANK
INCOME TAXES
Provision for all income taxes (including
taxes related to security transactions and
other nonoperating sources) amounted to
$1,480 million in 1970— up $257 million
from 1969. Reflecting in part the expiration
in mid-1970 of the Federal surtax on net
income and in part the further growth in
income from State and local government
obligations, which is tax-exempt, income
taxes applicable to operating income de
clined to $1,775 million— 2 per cent less
than in 1969. Losses sustained by banks on
Profits at both large and small banks moved
upward in 1970. Nevertheless, the rates of
growth varied substantially by class of bank.
Net income after taxes rose by 17 per cent
for reserve city banks in New York City
compared with increases of 8 and 7 per cent,
respectively, for reserve city banks in Chi
cago and all other reserve cities and an
increase of 12 per cent for the smallest banks
— country members (Table 4 ).
One of the major factors in the superior
performance of New York City banks was a
smaller growth in expenses from 1969 to
MEMBER BANK INCOME, 1970
451
1970 due in part to the reduced cost of bor
rowed money. As indicated earlier, money
market banks shifted much of their borrow
ing from high-cost Euro-dollars in 1969 to
lower-cost domestic funds in 1970. Since
City banks accounted for a large part of all
Euro-dollar borrowing, these banks bene
fited most from the shift. Lower income taxes
on operating earnings and smaller security
losses also helped boost profits at many
member banks in 1970. These factors were
more important, however— in relation to
earnings from current operations— for City
banks than for other member banks. Only
reserve city banks in Chicago, as a group,
reported higher income taxes applicable to
current earnings and larger security losses in
1970 than in 1969.
□
TABLE 4
CONSOLIDATED REPORT OF INCOME FOR 1970 AND 1969 FOR MEMBER BANKS GROUPED BY CLASS
In millions of dollars
Item
Reserve city
All member
banks
New York City
Country
City of Chicago
Other
1970
1969
1970
1969
1970
1969
1970
1969
1970
1969
27,913
24,991
5,116
4,668
1,230
1,085
10,450
9,332
11,117
9,906
18,706
17,104
3,523
3,324
817
765
7,217
6,641
7,148
6,374
781
649
94
116
31
30
301
221
355
283
2,208
415
2,090
118
1,075
868
681
2,041
322
1,794
106
972
835
557
279
36
296
26
336
66
105
247
16
258
20
309
61
83
81
8
80
6
79
6
20
70
4
71
5
71
5
18
671
78
721
44
421
326
312
598
54
635
39
374
313
254
1,177
293
994
43
238
469
244
1,125
248
830
41
218
457
202
Other............................................................
346
625
137
473
160
195
56
178
23
78
27
20
150
208
50
152
13
143
5
123
Operating expenses—Total................................
22,193
19,525
4,051
3,650
961
849
8,385
7,326
8,796
7,699
Salaries and wages of officers and employees
Officer and employee benefits.......... ............
Interest on—
Time and savings deposits.........................
Federal funds purchased and securities
sold under repurchase agreements. . .
Other borrowed money..............................
Capital notes and debentures....................
Net occupancy expense...................................
Furniture, equipment, etc...............................
Provision for loan losses................................
Other operating expenses...............................
5,282
876
4,690
749
905
175
794
145
181
38
156
30
1,994
327
1,762
283
2,202
335
1,978
290
8,139
7,059
995
826
288
249
3,085
2,738
3,770
3,245
1,365
444
90
1,013
722
534
3,728
1,177
562
89
867
615
381
3,336
398
228
26
195
90
82
956
366
126
29
160
73
48
1,084
137
35
2
41
21
30
188
106
163
2
27
19
13
83
699
150
40
361
280
199
1,249
592
239
39
311
239
132
990
131
31
22
415
331
224
1,335
112
35
19
369
285
187
1,179
5,720
1,775
3,945
5,467
1,813
3,653
1,065
370
695
1,018
390
628
269
92
178
236
81
156
2,065
670
1,395
2,005
679
1,326
2,321
644
1,677
2,207
663
1,544
-1 0 7
-209
-5 5
-7 8
-1 3
-7
-3 2
-7 5
-7
-4 9
-1 5
5
3
-2
2
-2 0
2
4
2
(i)
3,823
1,754
O)
3,450
1,523
642
423
551
345
162
88
150
70
O)
1,343
651
( 1)
1,252
593
O)
1,675
592
(!)
1,496
515
10.75
10.44
10.70
10.10
9.76
9.03
9.23
8.10
9.77
8.91
9.05
8.70
10.80
10.40
11.06
10.44
11.31
11.35
11.32
10.97
Operating income—T otal...................................
Loans:
Interest and fees..........................................
Federal funds sold and securities pur
chased under resale agreement..........
Securities:
Excluding trading-account income:
U.S. Treasury securities..........................
U.S. Govt, agencies and corporations..
States and political subdivisions............
Other securities.......................................
Trust department............................................
Service charges on deposit accounts.............
Other charges, fees, etc...................................
Other operating income:
Income before income taxes and securities
gains or losses.........................................
Applicable income taxes.................................
Income before securities gains or losses........
Net securities gains or losses ( —) after
taxes.........................................................
Extraordinary charges ( —) or credits after
taxes.........................................................
Less minority interest in consolidated
sub sidiaries..............................................
Net income......................................................
Cash dividends declared.................................
Ratios (per cent):
To equity capital (incl. reserves):
Income (after taxes) before securities
gains or losses..................................
Net income..............................................
1 Less than $500,000.
N o t e .—Figures
may not add to totals because of rounding.
0)
Two Key Issues of Monetary Policy
I intend to focus this morning on two prob
lems that concern practically all of our
countries. We have just experienced an inter
national monetary crisis, the ultimate re
percussions of which are not yet clear. We
shall therefore need to exchange ideas on
how to deal with large short-term capital
flows in the future.
The other major problem that haunts in
dustrialized countries is the power and per
sistence of cost-push inflation. Let us turn
to this at once.
Virtually all industrialized countries are
suffering from inflation at present. In some,
aggregate demand for goods and services is
still booming, so a rising price level can be
expected. In others, however, costs and
prices are continuing to advance in the face
of substantial unemployment and increasing
idle capacity of industrial plant.
We are living in an age in which costpush inflation has emerged as a major
obstacle to economic stability. Unless we
find workable solutions to this problem, our
best efforts to promote economic progress
and the general welfare may be thwarted.
Clearly, countries that are now expe
riencing demand-pull inflation must pursue
monetary and fiscal policies that aim to
eliminate excess demand. But they may
well find, as others have, that elimination of
excess demand does not assure a prompt
return to price stability.
The recent experience of the United States
is a case in point. During the past year and
a half, our unemployment rate has risen
from 3V2 per cent to about 6 per cent. Labor
N ote.— Remarks of Arthur F. Bums, Chairman,
Board of Governors of the Federal Reserve System,
before the 1971 International Banking Conference,
Munich, Germany, May 28, 1971.
452
is now readily available across the range of
skills and in most sections of the country.
Virtually all industries have substantial
amounts of excess capacity. In such circum
stances, past experience would have led us
to expect a substantial reduction in the rate
of increase of costs and prices, if not actual
declines. In fact, however, the improvement
thus far has been modest.
True, we have made progress over this
past year in regaining normal rates of growth
in productivity. However, increases in aver
age compensation per manhour have shown
no sign of abatement, and the advance of
unit labor costs has therefore moderated
less than we had hoped. With profit margins
remaining very low, businessmen have taken
available opportunities to pass their cost in
creases through to higher prices.
The continuance of a rising price level in
the midst of substantial unemployment thus
stems, basically, from continuing rapid in
crease in wages. Understandably, workers
are seeking to obtain wage gains large
enough to offset the effects of past increases
in prices on their real incomes and savings,
but this development also reflects the weak
ening of competitive forces in both our labor
and product markets. Wages and prices have
not been responding as sensitively as they
once did to shifts in the balance between
supply and demand.
The American economy is not unique in
this respect. The problem of cost-push
inflation has been plaguing many nations in
recent years. In Canada, for example, un
employment began rising in 1966 and has
been increasing irregularly since then. New
wage settlements under collective bargaining
agreements, however, have yet to show any
appreciable sign of moderation. In the
United Kingdom, the unemployment rate
has been slowly rising over the past 5 years
or so. Nonetheless, the upward movement
of wages and prices appears to have accel
erated in the past 18 months.
Cost-push inflation cannot be dealt with
effectively by using monetary and fiscal tools
alone. In today’s environment, efforts to do
so would inevitably reduce output and em
ployment far beyond the limits that our
governments can accept or their citizens
tolerate. On the other hand, I fear that cost
pressures may become so intractable in our
countries that they will ultimately weaken
democratic institutions, besides stifling eco
nomic progress.
Over a year ago, I reluctantly came to the
conclusion that monetary and fiscal instru
ments needed to be supplemented for a time
by incomes policies in the United States—
that is, policies designed to enable labor and
commodity markets to approximate more
closely the competitive model. My convic
tion has been strengthened by developments
during the past year.
I recognize that governmental involve
ment in the determination of wages and
prices can give rise to inequities, to misallocation of resources, to the blunting of private
initiative, and to an administrative morass,
but I am also aware of the moral force of
governmental leadership over private deci
sions in key industries, to say nothing of
the capacity of a vigilant government to
remove or reduce the special market power
that privileged groups now have.
We need in the United States, and I
believe also in other countries, greater re
liance on policies that promise to change
the structure and functioning of labor and
product markets, so that upward pressures
on costs and prices may be reduced. To
cope with the inflationary bias presently at
work in our economies, I see no acceptable
alternative to experimentation with incomes
policies— including wage and price review
boards that stop short of mandatory con
trols.
Let me turn next to the problem posed
by massive short-term capital movements.
Recently, as we all know, heavy speculation
in favor of a few currencies has led to
changes in the exchange-rate regimes of
several countries. It may be helpful to say a
few words about the background of these
events, asking what we can learn from the
crisis we have been through.
The heavy flow of short-term funds from
Europe to the United States in 1968-69
and the return flow during the past year
resulted from a disparity in the phasing of
the business cycle in the two areas. The
United States experienced serious demandpull inflation, and also moved to combat it,
before Europe did. More recently, while
demand conditions have remained strong
in Europe, we in the United States have
sought to prevent a sluggish economy from
slipping into a cumulative recession.
Differences in economic and credit con
ditions thus account for the swings in short
term capital flows of recent years. In par
ticular, the flow across the Atlantic since
early 1970 reflected not only a push from
the United States but also a pull from
Europe. The push from the United States
resulted from the easing of our credit con
ditions. The pull from Europe was just as
clearly the result of a continuing demand
for Euro-dollars by corporations and govern
mental entities that sought to escape from
tight credit within their domestic markets.
It was against this background of a mas
sive return of short-term capital to Europe
in 1970-71 that speculative fever broke out
a few weeks ago. Oddly enough, there were
good reasons to believe that we had already
passed the peak of capital flow.
453
454
The U.S. Government issue of $3 billion
in special securities to foreign branches of
American banks had served to check the
flow of dollars to European central banks.
After mid-March, a convergence of interest
rates got under way, with short-term rates
rising in the United States and declining in
Europe. By April the repayment by U.S.
banks to their foreign branches had slowed
sharply. Not only that, steps were already
being taken to check the creation of Euro
dollars by European central banks which
had inadvertently, but on a disconcertingly
large scale, added to the dollar reserves
that resulted from the balance of payments
deficit of the United States. In addition,
major plans were being developed by the
U.S. Treasury to provide improved invest
ment outlets for central bank reserves in the
United States.
Unhappily, the calm that appeared to exist
in these unfolding circumstances was dis
rupted by various events in Europe with
which you are all-familiar.
The events of the past 2 weeks have left a
residue of resentment among European
countries and toward the United States. If
some of you feel that the United States
depended excessively on monetary ease in
the past year, there are surely grounds for
holding that European countries relied ex
cessively on monetary stringency during this
period.
I must remind you of two facts. First,
the United States recently resorted to a far
more restrictive policy to wring excess
demand out of its economy than any country
in the world, with the possible exception of
Canada. Second, if a cumulative recession
had been allowed to occur in the United
States, it would almost certainly have
brought serious economic and political
trouble to other nations of the free world.
Let me turn briefly now to several lessons
we can derive from recent events.
FEDERAL RESERVE BULLETIN □ JUNE 1971
First, in a world of convertible currencies,
with many business firms and financial insti
tutions commanding large sums, differences
in monetary conditions can induce sizable
movements of short-term capital among
nations. Let us recognize that such flows
are the result of a pull from the receiving
countries as well as a push from the capitalexporting countries.
Second, the amplitude of short-term
capital movements will become smaller if we
manage to reduce differences in monetary
conditions. This would require, in all major
countries, a more active use of fiscal policy
for domestic stabilization purposes. The
political obstacles here are formidable but,
I hope, not insurmountable. We should keep
this goal before our minds as we deal with
day-to-day problems.
Third, the Euro-currency markets no
doubt facilitate the international movement
of short-term capital, but let us not deceive
ourselves regarding cause and effect. The
flow of funds through these markets is a
response to differences in basic economic
and monetary conditions among countries,
not a cause of such differences.
Fourth, some industrialized countries lack
the facilities to neutralize the disruptive
effects of large capital inflows or outflows on
their domestic money supply. It is important
that we all press forward, individually and
jointly with other nations, in devising insti
tutions that may serve to reduce the desta
bilizing impact of short-term capital flows.
Fifth, we live in a world in which private
citizens and businesses are expected to act
in response to the profit motive. Central
banks, on the other hand, have a stabilizing
function that should not be influenced by
considerations of profit or loss. If central
banks are to respond to the same factors
that motivate private entities, they are likely
to aggravate their own problems, as hap
pened during the past year when a sig
ISSUES OF MONETARY POLICY
nificant volume of central bank reserves was
placed in the Euro-dollar market.
Sixth, there is a tendency in some quarters
to identify the U.S. balance of payments as
the common cause of inflation in other
countries. I recognize that the flow of short
term capital has had the effect, to some
degree, of undermining monetary policies in
some countries. But let us not exaggerate this
effect. The wage explosions experienced by
European countries in recent years cannot
be attributed to the U.S. balance of pay
ments.
Seventh, what I have just said represents
in no sense an attitude of complacency about
the U.S. balance of payments. In a recent
appearance before a Senate committee, I
stressed once again the overriding need to
restore price stability at home and, in present
circumstances, to maintain our govern
mental constraints on private capital out
flows. I also took that occasion to note the
need to develop more effective methods for
recycling funds across national boundaries
when substantial short-term capital flows
occur, the need for some countries to relax
their restrictions on commodity imports and
capital outflows, and the need for America’s
allies to make a significantly larger contri
bution to the defense of the free world.
In closing, I would like to repeat what I
told the Senate Banking Committee about
the prospects for the U.S. balance of pay
ments. I see no reason for gloom about these
prospects.
Our price performance has recently been
better than that of many other industrial
455
countries. This advantage is likely to con
tinue and it should permit us to regain
competitive strength that we probably lost
in the second half of the 1960’s.
Our receipts of investment income from
abroad have been rising rapidly. We expect
this to continue even as rewards from invest
ment at home, which affect both our capital
and current accounts, loom larger.
We have seen in recent years a large in
crease of foreign investment in the U.S.
stock market. This too should continue, pro
vided we maintain a strong and healthy
economy and take measures to prevent
recurrences of the sort of speculative crisis
that occurred recently.
The reduction of our troops in Vietnam
is diminishing the military drain on our
balance of payments. We expect this reduc
tion to continue.
Finally, the bulk of the short-term capital
outflow through our banks is now behind us.
American banks have reduced the liabilities
to their foreign branches from over $14
billion in early 1970 to less than $2 billion
presently. Thus, even before our underlying
payments position improves, our deficit on
the official settlements basis should fall
sharply from its rate of the last year or so.
These favorable prospects can be has
tened if they are accommodated to by other
countries. After all, the counterpart of the
U.S. deficit is the rest of the world’s surplus.
We and our major trading partners need to
respect, in a spirit of candor and under
standing, the policy implications of this
simple arithmetic truism.
□
Survey of Demand Deposit Ownership
Since June 1970 the Federal Reserve Sys
tem has been conducting a survey on the
ownership of demand deposits held at com
mercial banks in the United States. This
new Survey— the last nationwide survey of
this type was in January 1961— provides
quarterly estimates of the ownership of gross
demand deposits of individuals, partnerships,
and corporations (IPC) at all commercial
banks in the United States and monthly esti
mates for such deposits at large weekly re
porting banks. Five depositor categories are
identified in the Survey: financial business,
nonfinancial business, consumer, foreign,
and all other.
The data to date indicate that nonfinan
cial businesses hold somewhat more than
half of the total IPC demand deposits in the
United States and financial businesses about
10 per cent. Thus, in the aggregate, busi
nesses hold more than three-fifths of the
total. Consumers are the major remaining
holder group, accounting for somewhat more
than 30 per cent. The residual is divided
between other domestic depositors (6 per
cent) and foreign lenders (1 per cent).
While the relative shares of the various
owner categories do not fluctuate widely
from month to month, the data indicate that
the structure of deposit ownership has shifted
moderately since June 1970. Balances of
financial businesses and consumers have
increased in relative importance while those
of nonfinancial businesses have declined.
In fact, consumer deposits account for
nearly four-fifths of the $6.3 billion rise in
total IPC balances at all weekly reporting
banks between June 1970 and April 1971.
However, with less than a year’s data, it is
456
difficult to determine whether— or to what
extent— these changes in ownership struc
ture reflect seasonal movements.
This article outlines the format of the
Survey and presents estimates of deposit
ownership based on data collected from
June 1970 through April 1971. These esti
mates are presented in Tables 1 and 2. The
results of subsequent surveys will appear
regularly in future B u l l e t i n s . This article
also describes the relationship of the de
posits covered in the Survey to the concept
and measures of the money stock published
in the B u l l e t i n (seasonally unadjusted
M i) and to the estimates of money stock
ownership shown in the Federal Reserve
flow of funds accounts. A detailed review of
the survey format and a discussion of the
statistical reliability of the survey estimates
are presented in a Technical Appendix.
OUTLINE OF SURVEY FORMAT
The Survey of Demand Deposit Ownership
focuses on deposit balances that are classi
fied on reports of condition submitted by
banks to the supervisory authorities as being
held by individuals, partnerships, and cor
porations— specifically, balances reported by
banks under item 15 on the quarterly con
solidated report of condition. Reporting
banks have been asked to classify these ac
counts into five categories: financial busi
ness, nonfinancial business, consumer, for
eign, and all other domestic depositors.1
The information is collected from a sam
ple of banks— 413 banks of a total of about
1 See the Technical Appendix for a detailed de
scription of the types of depositors in the various
categories.
depositors in the all other category made up
the remaining shares of about 1 per cent
and 6 per cent, respectively. Deposit hold
ings of nonfinancial business firms, financial
business firms, and foreigners account for
somewhat greater proportions of total IPC
demand deposits at weekly reporting banks
than they do at all commercial banks (Table
2 ). Correspondingly, the relative shares of
the total held by consumers and by all other
domestic depositors at weekly reporting
banks are smaller.
These differences in the relative owner
ship distribution of demand deposits among
U.S. banks are highlighted in Table 3. It
shows that financial and nonfinancial busi
nesses together account for approximately
70 per cent of the total of IPC deposits at
large commercial banks, whereas at smaller
banks the balances of these depositors make
up only slightly more than half of the total.2
Conversely, consumers are a decidedly less
important source of demand deposit funds at
large commercial banks than at smaller
banks, with balances supplied by these de
positors at large banks about one-fifth of
14,000. Somewhat more than half of the
sample was selected from commercial banks
that had total deposits in excess of $100
million in mid-1968. On the basis of the
reports from this part of the sample, it is
possible to make monthly estimates of IPC
deposit ownership at all large banks for
which comprehensive weekly reports of con
dition are regularly published (Federal
Reserve statistical releases and the B u l l e
t i n , pp. A 26-A 30). The remaining sample
banks were selected from among smaller
commercial banks; these banks were asked
to report information on deposit ownership
for the last month of each calendar quarter.
The data for the combined sample make
possible the construction of quarterly esti
mates (the last month of the quarter) of IPC
demand deposit ownership at all commer
cial banks. For both parts of the Survey, the
data are on a daily-average basis for the
month.
OWNERSHIP DISTRIBUTION
MAND DEPOSITS
OF IPC
DE
In the months covered by the Survey so far,
nonfinancial business firms owned somewhat
more than half of the total IPC deposit
balances, with the shares held by financial
businesses and consumers accounting for
about one-tenth and slightly less than onethird of the total, respectively, as shown in
Table 1. Balances of foreigners and of
2 The estimates of deposit ownership at banks other
than those reporting weekly were not based directly
on data supplied in the Survey. These estimates were
derived by deducting estimates of ownership holdings
at weekly reporting banks from such estimates for all
commercial banks. Thus the nonweekly reporting
bank estimates are subject to the sampling errors
found in the weekly reporting bank estimates, as well
as those found in the all commercial bank estimates.
TABLE 1
IPC DEMAND DEPOSIT OWNERSHIP AT ALL COMMERCIAL BANKS
Quarterly Estimates, June 1970-M arch 1971
Outstanding
(millions of dollars)
Category
Financial business...............
Nonfinancial business.........
Percentage distribution
1971
1970
1971
1970
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
16,649
85,808
49,888
1,425
9,595
17,029
88,050
51,392
1,371
10,015
17,315
92,687
53,564
1,285
10,271
18,222
86,027
54,700
1,387
10,473
10.2
52.5
30.5
.9
5.9
10.1
52.5
30.6
.8
6.0
9.9
52.9
30.6
.7
5.9
10.7
50.4
32.0
.8
6.1
163,364 167,860 175,122 170,810 100.0
100.0
100.0
100.0
N ote.— D etails may n ot add to totals because o f rounding.
457
FEDERAL RESERVE BULLETIN □ JUNE 1971
458
TABLE 2
IPC DEMAND DEPOSIT OWNERSHIP AT WEEKLY REPORTING BANKS
Monthly Estimates, June 1970-April 1971
1970
Category
June
July
Aug.
1971
Sept.
Oct.
Dec.
Nov.
Jan.
Feb.
Mar.
Apr.
Outstanding (billions of dollars)
Financial business__
Nonfinancial business
Consumer.................
Foreign..................... .
All other................... .
12,835
52,980
20,976
1,306
5,208
13,588
52,813
20,609
1,415
5,314
12,720
52,821
20,574
1,235
4,852
13,382
53,850
21,151
1,272
5,472
13,217
53,708
20,856
1,238
5,822
13,587
53,910
21,066
1,185
5,415
13,502
56,138
23,280
1,183
5,551
13,936
54,446
24,096
1,224
5,583
13,810
52,267
23,060
1,217
5,486
14,052
52,401
23,889
1,259
5,716
14,126
53,413
25,289
1,251
5,704
Total..................... .
93,306
93,739
92,204
95,127
94,841
95,163
99,653
99,286
95,840
97,317
99,783
Percentage distribution
Financial business
Nonfinancial business
Consumer.................
Foreign.....................
All other...................
T otal.....................
N o t e .—Details
13.8
56.8
22.5
1.4
5.6
14.5
56.3
22.0
1.5
5.7
13.8
57.3
22.3
1.3
5.3
14.1
56.6
22.2
1.3
5.8
13.9
56.6
22.0
1.3
6.1
14.3
56.7
22.0
1.2
5.7
13.6
56.3
23.4
1.2
5.6
14.0
54.8
24.3
1.2
5.6
14.4
54.5
24.1
1.3
5.7
14.4
53.9
24.6
1.3
5.9
14.2
53.5
25.3
1.3
5.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
may not add to totals because of rounding.
TABLE 3
PERCENTAGE DISTRIBUTION OF IPC DEMAND DEPOSITS AT SELECTED GROUPS OF BANKS, BY
OWNERSHIP CATEGORY
Quarterly Estimates, June 1970-M arch 1971
All
com
mercial
banks
Financial business.. . .
Nonfinancial business.
Foreign.......................
All other.....................
10.2
52.5
30.5
.9
5.9
13.8
56.8
22.5
1.4
5.6
Total.......................
100.0
100.0
N o t e .—Details
Weekly
reporting Other
banks
banks
All
com
mercial
banks
Weekly
reporting Other
banks
banks
All
com
mercial
banks
Weekly
reporting
banks
Other
banks
All
com
mercial
banks
5.4
46.9
41.3
.2
6.3
10.1
52.5
30.6
.8
6.0
14.1
56.6
22.2
1.3
5.8
5.0
47.0
41.6
.1
6.3
9.9
52.9
30.6
.7
5.9
13.6
56.3
23.4
1.2
5.6
5.1
48.4
40.1
.1
6.3
10.7
50.4
32.0
.8
6.1
14.4
53.9
24.6
1.3
5.9
5.7
45.9
41.7
.2
6.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Weekly
reporting Other
banks
banks
Category
March
December
September
June
may not add to totals because of rounding.
total IPC deposits compared with about
two-fifths of the total at smaller banks. Also,
deposits of foreign IPC customers are rela
tively much more important at weekly re
porting banks than at smaller banks, and
balances of customers in the all other cate
gory have less relative importance at the
weekly reporting banks.
COMPARISON WITH DATA FROM EARLIER
SURVEYS
The estimates of the relative ownership dis
tribution of IPC deposits at all commercial
banks obtained in the present Survey appear
to differ only moderately from the distribu
tion estimated in the 1961 survey. As shown
in Table 4, the estimated percentages of
total IPC demand deposits held by financial
businesses, nonfinancial businesses, and for
eigners in this Survey are somewhat below
those measured in the 1961 survey. Con
versely, the estimated shares of total IPC
demand balances held by consumers and
depositors in the all other category are some
what higher now than in 1961.
Some caution is required in interpreting
SURVEY OF DEMAND DEPOSIT OWNERSHIP
these comparisons because the surveys differ
in several significant respects. The estimates
for 1961 and earlier were derived from
reports reflecting balances outstanding on a
single day late in January, while the 197071 data are based on estimates of dailyaverage balances held during the reporting
TABLE 4
PER CEN TA G E D IS T R IB U T IO N O F DEM AND DE
P O S IT O W N E R S H IP AT COM M ERC IA L BAN KS IN
T H E U N ITE D STA T E S, 1 9 4 7 - 7 1
Annual averages,
or 1-month
estimate
1947-49...................
1952-55...................
1957-60...................
1961.........................
1970—June..............
Sept...............
r j 1' 1...............
Dec...............
1971—Mar...............
Finan Nonfi
cial
nancial
business business
8.8
9.9
11.5
11.2
10.2
10.1
9.9
10.7
57.3
55.1
53.6
53.4
52.5
52.5
52.9
50.4
Con
sumer
Foreign
All
other
27.5
28.6
29.6
29.7
30.5
30.6
30.6
32.0
n.a.
n.a.
.2
.9
.9
.8
.7
.8
6.4
6.4
4.6
4.7
5.9
6.0
5.9
6.1
n.a. Not available.
N o t e .—Data for years 1947 through 1961 reflect estimates derived
from previous surveys of deposit ownership distribution, which
measured ownership distribution on a single day in late January of
each year. In contrast, data for 1970 are estimates of the daily average
for the month. Before 1957 foreign deposits and all deposits of bank
trust departments were reported as part of “all other.” In 1970,
deposits of “own” trust departments are in all other; deposits of other
banks’ trust departments are in financial business. The earlier surveys
showed a separate category for farm accounts. These are not sep
arated out in 1970, and in this table the farm accounts have been
combined with nonfinancial business in the earlier years.
months. While seasonal movements and the
volatility of 1-day figures may account for
part of the observed differences, it seems
likely that some significant change did take
place from 1961 to the present. Some of the
observed shifts in ownership distribution be
tween 1961 and the present continue trends
observed in earlier years. Thus, the share of
total IPC demand deposits held by non
financial business has been declining at least
since the late 1940’s, whereas the share held
by consumers has been rising over this
period.
SHORT-TERM CHANGES IN DEPOSIT OWN
ERSHIP
The Survey estimates indicate that the vol
ume of balances held by each depositor cate
gory changed perceptibly during the period
June 1970 to April 1971 and that these
459
shifts resulted in statistically significant
changes in the percentage distribution of
deposits among ownership categories. (For
an evaluation of the statistical properties of
the changes, see the Technical Appendix.)
A longer run of the series will be required to
separate out the seasonal component of these
movements in deposit ownership.
As indicated in Table 5, total IPC de
mand deposits as measured in the Survey
increased markedly in the third and fourth
quarters of last year and then dropped dur
ing the first quarter of this year. Only non
financial business deposits showed the same
general pattern as the quarterly variations
in the total. Balances of all four domestic
depositor groups increased at all commer
cial banks during the third and fourth
quarters, but during the first quarter of this
year, while balances of nonfinancial busi
nesses declined sharply, balances of financial
businesses, consumers, and all other domes
tic depositors increased further. Foreign
deposit balances had a pattern the reverse of
that of the total, declining in the third and
fourth quarters and increasing in the first
quarter. Although seasonal patterns of
change in sector holdings as measured in the
Survey are not yet known, it seems likely
that the substantial decline in nonfinancial
business balances during the first quarter of
this year in part reflects seasonal influences,
since business borrowing of banks tends to
decline markedly early in the year. But
given the magnitude of the decline, it also
appears quite likely that nonfinancial busi
ness deposits would show a decline after
seasonal adjustment.
As a cumulative result of these quarterly
variations, deposit balances of all four do
mestic depositor groups show increases for
the entire period that range from a high of
9.3 per cent for the consumer category to
a low of 1.7 per cent for the nonfinancial
business category. Foreign deposit balances
460
FEDERAL RESERVE BULLETIN □ JUNE 1971
TABLE 5
QUARTERLY C H A N G E S IN T H E PER C E N TA G E O F IPC DEM AND D E PO SIT S AT SEL EC TE D G R O U P S O F
BA N K S, BY O W N E R S H IP CATEGORY
J u n e 1 9 7 0 -M a rc h 1971
All commercial banks
Category
1970
1971
Q3
Q4
Ql
Financial business.............
Nonfinancial business........
Consumer...........................
Foreign...............................
2.3
2.6
3.0
- 3 .8
4.4
1.7
5.3
4.2
- 6 .3
2.5
5.2
- 7 .2
2.1
7.9
2.0
Total...............................
2.8
4.3
- 2 .5
Entire
period
Weekly reporting banks
Other commercial banks
1970
1970
1971
Entire
period
1971
Entire
period
Q3
Q4
Ql
9.5
.3
9.6
- 2 .7
9.2
4.3
1.6
.8
- 2 .6
5.1
.9
4.3
10.1
- 7 .0
1.4
4.1
- 6 .7
2.6
6.4
3.0
9.5
- 1 .1
13.9
- 3 .6
9.8
-4 .4
4.2
4.6
—16.7
3.6
4.6
6.9
.1
3.4
3.8
9.4
- 8 .0
1.7
25.4
.8
10.7
2.7
6.1
-2 .9
8.3
4.6
2.0
4.8
- 2 .3
4.3
3.8
3.8
- 2 .6
4.9
Q3
Q4
Ql
of last year and then declined in the first
quarter of this year, whereas foreign de
posit balances declined over the second half
of last year and then increased during the
first quarter of this year. The cumulative
effect of these quarterly variations at weekly
reporting banks was to substantially raise
balances of financial businesses, consumers,
and all other depositors and to slightly re
duce balances of nonfinancial businesses and
foreigners. At all other commercial banks,
balances of all domestic depositor groups
show an increase for the entire period and
foreign balances display a slight decline.
The pattern of deposit ownership develop
ments for the early part of 1971 was altered
to some extent by developments in April,
show a net decline of 2.2 per cent for the
10-month period.
The patterns of quarterly change in own
ership balances at weekly reporting banks
and at all other commercial banks generally
conform to those displayed by the totals for
all commercial banks (Table 5). With but
one exception balances of financial busi
nesses, consumers, and all other domestic
depositors increased in all three quarters at
both groups of banks. Quarterly changes in
nonfinancial business balances and foreign
balances at weekly reporting banks and
other banks also generally matched the pat
tern established for all commercial banks—
that is, nonfinancial business balances in
creased in both the third and fourth quarters
TABLE 6
QUARTERLY C H A N G ES IN T H E PERCENTAGE O F TOTAL IPC DEM AND D E PO SIT S HELD BY EACH
O W N E R S H IP CATEGORY
Ju n e
1 9 7 0 -M arch
1971
All commercial banks
Category
1970
Q3
Financial business..............
Nonfinancial business........
Consumer...........................
Foreign...............................
All other.............................
- .1
” .’ i
- .1
.1
1971
Q4
- .2
.4
-!i
- .1
Entire
period
Other commercial banks
1970
1970
Q3
Ql
.8
- 2 .5
1.4
.1
.2
Weekly reporting banks
.5
- 2 .1
1.5
- .1
.3
.3
- .2
- .3
- .1
.2
1971
Q4
-.5
- .3
1.2
- .1
- .2
Entire
period
Q3
Ql
.8
- 2 .4
1.2
.1
.3
.1
- 2 .8
2.1
- .1
.3
-.4
.2
.3
1971
Entire
period
Q4
Ql
* i!i
- 1 .5
.4
- 2 .9
1.5
.3
- 1 .0
.5
.3
” .*2
SURVEY OF DEMAND DEPOSIT OWNERSHIP
however, as nonfinancial business balances
rose about $1 billion for the month while
holdings by financial businesses, consumers,
and all other domestic depositors showed
further increases of $600 million, $2.0 bil
lion, and $200 million, respectively, and
foreign deposits remained essentially un
changed. With the sharp April advance,
it now appears that nonfinancial business
balances have risen somewhat more strongly
since June of last year. This increase, how
ever, remains well below the gains in finan
cial business and consumer balances,
whether the changes compared are meas
ured in absolute or percentage terms.
The quarterly changes in balances held
by the various ownership groups reviewed
above resulted in some shifts in the percent
age distribution of total IPC deposits among
owner groups (Table 6). At all commercial
banks, the percentage distribution of total
461
IPC deposits remained essentially stable dur
ing the second half of 1970, but then shifted
noticeably in the first quarter of this year,
as the relative shares held by the financial
business and consumer categories rose ap
preciably and the share of the total held by
nonfinancial business declined. The relative
share of total IPC deposits held by depositors
in the all other category rose over the 10month period, whereas that held by for
eigners declined slightly.
Developments in relative ownership dis
tribution at weekly reporting banks and at
other commercial banks differed to some
degree from those recorded at all commer
cial banks. Quarter-to-quarter changes in
the percentage of total IPC demand de
posits held by each ownership group at
these two groups of banks appear to have
been slightly larger— especially in the latter
half of last year— than at all commercial
TABLE 7
D E PO SIT O W N E R S H IP BALANCES
In millions of dollars unless otherwise indicated
1970
1971
Ownership category and bank group
Financial business:
All commercial banks........................................
Weekly reporting banks—
Amount...................................... ....................
Per cent of total..............................................
Nonfinancial business:
All commercial banks........................................
Weekly reporting banks—
Amount...........................................................
Per cent of total..............................................
Consumers:
All commercial banks........................................
Weekly reporting banks—
Amount...........................................................
Per cent of total..............................................
Foreign:
All commercial banks........................................
Weekly reporting banks—
Per cent of total..............................................
All other:
All commercial banks........................................
Weekly reporting banks—
Amount...........................................................
All categories:
All commercial banks........................................
Weekly reporting banks—
June
Sept.
Dec.
Mar.
16,648
17,029
17,315
18,222
12,835
77.1
13,382
78.6
13,502
78.0
14,052
77.1
85,808
88,050
92,687
86,027
52,980
61.7
53,850
61.2
56,138
60.6
52,401
60.9
49,888
51,392
53,563
54,700
20,976
42.0
21,151
41.2
23,280
43.5
23,889
43.7
1,425
1,371
1,285
1,387
1,306
91.6
1,272
92.8
1,183
92.1
1,259
90.8
9,595
5,208
54.3
163,364
93,306
57.1
10,018
5,472
54.6
167,860
95,127
56.7
10,271
5,551
54.0
175,122
99,653
56.9
10,473
5,716
54.6
170,810
97,317
57.0
462
FEDERAL RESERVE BULLETIN □ JUNE 1971
banks. In addition, in some instances the
pattern of quarterly changes in relative
ownership distribution also differed. For the
entire period, however, the patterns of
change in ownership distribution at both
groups of banks appear to have been gen
erally similar to those at all commercial
banks— financial business, consumer, and
all other domestic depositors increased their
share of total IPC balances at both groups
of banks while the shares held by nonfinan
cial business declined.
Although there are a number of differ
ences in the relative size of growth rates and
in quarterly patterns of change in the various
deposit ownership categories at all com
mercial banks and weekly reporting banks,
the monthly data for weekly reporting banks
appear to provide a good indication of
the course of deposit ownership develop
ments at all commercial banks. It will be
noted in Table 5, for example, that the
direction of change in each owner category
at weekly reporting banks accurately indi
cated the direction of change at all commer
cial banks in the three quarters for which
data were collected. As previously noted,
the size of the differences in percentage
change between these two data series was
quite large in some cases, so that the weekly
reporting bank data do not serve as a precise
gauge of the universe. More experience with
the data should provide some insight on the
extent to which this divergence may be due
to differences in the seasonal patterns of
deposit developments at the two groups of
banks.
A fairly close correspondence between
weekly reporting bank data and all commer
cial bank data is not surprising, of course,
since balances at weekly reporting banks
account for a large share of the total of
balances maintained at all commercial
banks. As may be seen in Table 7, deposits
held by financial businesses at weekly re
porting banks accounted for more than
three-fourths of all such balances in the
country in the final month of all four quar
ters. Nonfinancial business deposits at
weekly reporting banks accounted for about
three-fifths of all balances at commercial
banks, foreign deposit balances more than
nine-tenths, and all other deposits more
than one-half. The proportion of consumer
balances held at weekly reporting banks,
on the other hand, is only a little more than
two-fifths of all such balances in the United
States. These weekly reporting bank per
centage shares of total balances in the vari
ous categories appear to fluctuate within
fairly narrow ranges.
SURVEY DATA COMPARED WITH MONEY
STOCK AND FLOW OF FUNDS ESTIMATES
With demand deposits making up about
four-fifths of the total money stock— cur
rency is the remaining one-fifth— demand
deposit ownership data can provide impor
tant insight into the question of who owns
the U.S. money stock and how money stock
ownership changes over time. However, the
deposits covered in the Survey differ from
the demand deposit component of the money
stock in a number of ways. The money stock
includes several other types of demand de
posits in addition to IPC demand deposits.
Moreover, the Survey IPC demand deposit
data are on a gross basis— that is, before
deduction of bank float— whereas the money
stock demand deposit component is net of
bank float.
Lines 1 through 10 of the first (total)
column of Table 8 illustrate the relationship
with the money stock measure for December
of last year. To approximate the demand de
posit component of the money stock (line
8), it is necessary to add to gross IPC de
mand deposits as measured in the Survey
(line 1) demand deposits that are not part
of the IPC total— the demand deposits of
SURVEY OF DEMAND DEPOSIT OWNERSHIP
463
TABLE 8
RECON CILIATION BETW EEN SURVEY DATA AND SELECTED FINANCIAL S E R IE S , DECEM BER 1 9 7 0
In billions of dollars without seasonal adjustment
Holder sector
Line
Item
Total IPC demand deposits, gross, as measured in
ownership survey........................................................
State and local government deposits............................
Demand deposits of foreign official institutions,1 in
ternational institutions, and foreign commercial banks
Certified and officers’ checks...................................... *
Sum of (1) through (4)..................................................
Bank float2................................................................... *
Statistical discrepancy..................................................
Private demand deposit component of money stock...
Currency holdings........................................................
Money stock (as published)........................................
Demand deposit balances held by Edge Act corpo
rations and agencies of foreign banks in U.S.3. . . .
Mail float4....................................................................
Money holdings on holder-record basis—average for
month........................................................................
Money holdings in flow of funds accounts on holderrecord basis—end-of-month balances.....................
(14) less (13).................................................................
Total
175.1
14.5
3.7
9.4
202.7
-3 1 .8
.2
171.1
50.0
221.1
Financial
business
17.3
92.7
Consumer
and other
domestic
depositors
63.8
Total
foreign
accounts
1.3
State and
local govts.
14.5
3.7
17.9
2.2
94.9
- 2 5 .8
.2
69.3
17.9
69.3
1.2
- 2 1 .4
1.2
- 2 .3
-1 7 .1
200.9
16.8
52.2
113.8
5.0
12.5
5204.3
3.4
16.8
49.6
2.6
M20.3
- 6 .5
65.0
12.5
1 Figures include deposit balances maintained at Federal Reserve
Banks.
2 Bank float includes cash items in process of collection as indicated
on bank balance sheets plus Federal Reserve float. The figure has also
been adjusted for the volume of cash items generated by Edge Act
corporations and agencies of foreign banks in the United States.
3 These deposits are included in “due to commercial banks” in
banking statistics and are excluded from money stock totals.
5.2
22.5
- 4 .6
Non
financial
business
63.8
' ‘5 .0 ’
63.8
50.0
113.8
' ’5.6'
*'5.'6‘
" 2 .0
16.5
- 2 .0
14*5*
*i 4 .*5
—2.0
4 Checks in transit that have been deducted from senders’ records
but not yet added to receivers’ records.
5 Reflects revision in flow of funds figures on foreign balances not
yet incorporated in flow of funds B u l l e t in tables.
6 Equal to sum of lines 8 and 10 in total column (assets) of flow o
funds table on p. A71.2 of this B u l l e t in .
* No data available to guide distribution of these items. See text
for explanation of basis used.
The Board’s flow of funds accounts pre
sent estimates of private sector holdings of
the money stock (see pp. A 71 and A 71.2
of this B u l l e t i n ) . The sum of these private
sector holdings differs from the money stock
measure mainly in that (1) the former is net
of mail float and the latter gross, and (2)
the former measures balances as of single
points in time (for example, December 31)
and the latter is on a daily-average basis.
The remaining lines in column 1 of Table 8
provide the additional items required to
complete the reconciliation with the flow of
funds total of private sector holdings. The
difference due to the flow of funds estimates
being net of mail float— checks deducted
from deposit owners’ records but not yet
entered on bank records— is shown on line
3 The IPC figure is based on Survey sample data. 12. Line 11 reflects a difference in treatment,
The data for other deposit categories were estimated
between the flow of funds and money stock
using weekly reporting bank and semiannual call re
series, of balances held by Edge Act corpo
port data. The figure for bank float is also partially
estimated in that nonmember banks do not report
rations (subsidiaries of U.S. banks engaged
their cash items in process of collection on a dailymainly in international activities) and agenaverage basis.
State and local governments (line 2), for
eign commercial banks, foreign official in
stitutions, and international institutions
(combined in line 3), and certified and offi
cers’ checks (line 4 ) — and to deduct bank
float; that is, the sum of cash items in process
of collection as shown on bank books and
Federal Reserve float (line 6). The figure
thus obtained differs slightly from the pub
lished figure for the deposit component of
the money stock (line 8) because the
amounts shown for each item are statistically
independent of the published money stock
figures.3 The difference is indicated in line 7.
The addition of the currency component of
the money stock (line 9) completes the
reconciliation to the published money stock
figure (line 10).
464
cies of foreign banks located in the United
States. Line 13 shows an estimate on a dailyaverage basis of total sector holdings of the
money stock; line 14 shows the sum of flow
of funds estimates of private sector holdings
of the money stock on a holder-record basis
and measured as of the last day of the month.
The difference in the estimates that is due
to differences in timing between the daily
average of balances for December and the
balance on the last day of the month is
shown on line 15.
The remaining columns of Table 8 pre
sent estimates of the sector allocation of the
various totals of deposits and money stock
just discussed, starting with the Survey esti
mates of sector distribution of gross IPC
demand deposits (line 1), going to a derived
estimate of the sector distribution of the
published money stock (line 10), and end
ing with the flow of funds sector estimates
(line 14). The sector distributions of the
items needed for the derivations and recon
ciliations in these columns are on a weaker
statistical basis than is the case for the total
column. Thus, there is little firm information
available that can serve as a reliable guide in
determining how bank and mail float, cur
rency, and certified and officers’ checks are
distributed among owner categories. In this
circumstance, the principle utilized in the
table for the sector distribution for such
items was to bring the sector ownership
estimates based on the Survey as close as
possible to the flow of funds sector esti
mates— derived mainly from estimates of
holder balance sheets— while at the same
time making the allocation reasonably con
sistent with the few known facts about the
distribution of these items. In this way, the
statistical differences that remain highlight
the minimum statistical problems in the
flow of funds estimates.
In Table 8, the major items distributed on
the basis of these criteria are marked by
asterisks. In distributing certified and offi
FEDERAL RESERVE BULLETIN □ JUNE 1971
cers’ checks (line 4 ), it was assumed that
such checks are generated mainly in money
market transactions and large payments
among businesses and governments. For
bank float (line 6 ), it was assumed that,
because business and government deposits
have much higher turnover rates than per
sonal deposits, the volume of bank float
attributable to personal deposits was suffi
ciently small to be omitted. An opposite
assumption was made for currency holdings,
it being assumed that business holdings are
negligible.4
On the basis of these adjustments, rough
measures of the ownership distribution of
the published average money stock estimates
are obtained (line 10). For the remaining
items of reconciliation to the flow of funds
sector estimates, deposit balances held by
Edge Act corporations and agencies of for
eign banks in the United States (line 11)
were assigned to financial businesses, and
the sector distribution of mail float (line
12) was made on the same basis as that used
for distributing bank float.
The method of allocation described above
resulted in estimates for financial business,
foreign, and State and local government
categories on line 13 equal to those currently
in flow of funds accounts for December 31.
The statistical differences appear only in
the nonfinancial business and consumer
sectors.
The estimates derived from the ownership
4 The principal business holding of currency pre
sumably is in retail trade, and on an assumption that
retail stores have on hand currency amounting to
1 day’s cash sales, an estimate of holdings for retail
trade for December 1970 comes to about $1 billion.
This was a small part of the $50 billion of currency
then outstanding.
A substantial part of currency in circulation is prob
ably overseas and therefore part of foreign holdings
of the U.S. money stock. No data on such holdings
exist and they are not included in the balance of
payments data on international positions that are the
basis for flow of funds foreign holdings. In the absence
of factual information, the total of currency holdings
is attributed residually to the consumer sector.
SURVEY OF DEMAND DEPOSIT OWNERSHIP
survey data and the assumed sector distri
bution of the adjustment items indicate
larger balances for business and smaller
holdings for consumers than are now in the
flow of funds accounts. There is some possi
bility that timing is a source of the differ
ence, resulting perhaps from large wage and
dividend payments near the end of the
month. The total private wage bill in
December after withholding tax deductions
was over $35 billion, so there is scope in
timing for the disparity of $4 billion that
465
appears in the table. However, the distribu
tion of float and currency made above was
designed to bring the estimates close to
gether and any reasonable alternative
allocation would result in even wider
disparity. Thus it seems likely from these
early results that the flow of funds distribu
tion of ownership should be shifted, increas
ing the estimated money holdings of busi
nesses and reducing the holdings of
consumers. This will be worked out when
more experience is gained with Survey data.
TECHNICAL APPENDIX
DESIGN OF THE SURVEY
The design for the Demand Deposit Ownership
Survey called for a sample of 413 commercial
banks. Of these banks, 225 were chosen from
banks that had IPC demand deposits in excess of
$100 million in mid-1968. All banks with deposits
over $1 billion were included as were about 43
per cent of the banks in the $100 million to $1
billion deposit size range. These banks were asked
to report on a monthly basis. The remaining 188
banks in the sample were chosen on a stratified
random basis from all other insured commercial
banks. These smaller banks were asked to submit
reports for the last month of each calendar quarter.
From the sample so structured, it is possible to
develop estimates of IPC demand deposit owner
ship for each month of the year at weekly reporting
banks and for the last month of each quarter at
all commercial banks.
Reporting banks were asked to classify their
IPC accounts into five categories: financial busi
ness, nonfinancial business, consumer, foreign, and
all other domestic depositors. The financial busi
ness category includes such businesses as mutual
savings banks, insurance companies, securities and
commodity brokers and dealers, finance compa
nies, and holding and investment companies;1 de
posits maintained at the reporting bank by the trust
departments of other banks are also reported in
this category. The nonfinancial business category
covers such industries as manufacturing, mining,
transportation, trade, farming, real estate, the pro1 Demand deposits held by banks are not included
in IPC deposits and are not covered in this Survey.
fessions (such as medicine or law), and so forth.
The consumer category includes all individual and
family accounts and all personal trusts not under
the control of the trust departments of banks. The
foreign category encompasses all accounts classi
fied as IPC deposits that are owned by business
firms or persons domiciled outside the United
States and its possessions.2 The all other category
includes such depositors as nonprofit membership
organizations and nonprofit religious, educational,
and scientific organizations; accounts maintained
by the trust departments of the reporting banks at
their own banks are also placed in this category.
With respect to the reporting coverage of ac
counts within the sample banks, each bank was
offered the option of reporting on the ownership
status either for a sample of its IPC accounts or
for all of its IPC accounts, whichever was more
convenient. (About 80 per cent of the large sample
banks and 70 per cent of the smaller ones chose
to report on a full enumeration basis.)
In those cases in which banks decided to report
on a sample basis, they were requested to identify
and include all accounts with large balances— large
accounts being defined either as those with bal
ances exceeding $20,000 or the top 2 per cent
of the bank’s accounts with the largest balances.
In addition, those reporting banks maintaining
2 Not all foreign deposits are included in IPC de
posits and thus not all are covered in this Survey.
Moreover, because banks experience difficulties in
identifying foreign accounts in some instances, the
estimate of foreign balances derived from this Survey
may understate the total volume of foreign IPC
balances in the United States.
466
FEDERAL RESERVE BULLETIN □ JUNE 1971
special ledgers of accounts that are homogeneous
or nearly so were asked to supply information on
these accounts. Finally, the banks reporting on a
sample basis were asked to select a random 1 per
cent sample of accounts from all remaining ac
counts not reported as large accounts or special
ledger accounts. Thus in the case in which banks
report on a sample of their accounts, this sample
includes about 3 per cent of its IPC accounts. Of
course, since all large accounts are included in the
sample, the relative proportion of total IPC bal
ances covered by this sample is substantially
higher.
The Survey has been designed so that the esti
mates reflect an average of daily balances main
tained during the reporting month. Banks were
given the option of reporting the ownership classi
fication of accounts on a daily basis (so that a
true daily average for the month is reported) or of
reporting as of each Wednesday of the month
(which statistical analysis had indicated would
yield an adequate estimate of the daily average).
However, the smaller quarterly reporting banks
(and some of the large monthly reporting banks
with special reporting problems) were given the
additional option of reporting as of the second and
third Wednesdays of the month. (Of the large
reporting banks, approximately 45 per cent chose
to report on a daily-average basis, about 20 per
cent on an each-Wednesday basis, and the re
mainder on a second- and third-Wednesday basis.
Of smaller reporters, nearly 80 per cent selected
the second- and third-Wednesday basis and only
20 per cent chose the daily-average basis.)
When a reporting bank submits information on
a sample of its accounts, these data are blown up
to reach ownership estimates for all accounts
maintained at the bank. And in the case of data
received from banks reporting on either an eachWednesday basis or on a second- and thirdWednesday basis, the balances for these days are
averaged to obtain proxy measures of balances
maintained on average during each day of the
month. All individual bank estimates are then used
to obtain estimates for all weekly reporting banks
and all commercial banks.
STATISTICAL RELIABILITY OF THE ESTIMATES
An indication of the statistical properties of the
estimates of deposit ownership at all commercial
banks produced by the Survey can be obtained by
referring to Appendix Table 1. The figures pre
sented in the various cells of the table were calcu
lated by doubling the standard errors of estimate
for each ownership estimate, dividing this value
by the value of the estimate itself, and expressing
APPENDIX TABLE 1
M E A SU R E S O F VARIATION 1 FOR DEM AND D E PO SIT O W N E R S H IP SURVEY
ESTIM A TES
In per cent
All commercial banks
Category
Quarterly changes
Outstandings, 1970-71
1970
1971
June
Sept.
Dec.
Mar.
III
IV
I
Financial business.......................
Nonfinancial business.................
Consumer.....................................
Foreign.........................................
All other.......................................
7.1
1.7
3.8
8.7
13.8
5.5
1.9
3.6
8.4
8.9
5.4
1.9
3.5
9.4
10.0
5.6
2.0
2.7
8.1
10.1
75.0
40.0
46.2
72.2
*
*
19.6
46.0
20.4
•
45.2
13.6
56.2
69.4
*
T otal.........................................
1.3
.7
.7
1.0
24.4
8.2
23.6
Weekly reporting banks
Financial business.......................
Nonfinancial business.................
Consumer.....................................
Foreign.........................................
5.0
2.2
4.7
6.9
7.1
4.5
1.3
3.6
7.1
6.3
3.3
.7
2.3
7.7
2.9
3.9
1.2
2.7
7.8
5.0
22.8
74.6
*
19.8
46.0
•
22.1
16.2
15.6
*
59.8
8.0
50.6
18.8
*
Total.........................................
.9
.5
.3
.4
26.0
9.6
9.8
1 Data in the cells of the table have been obtained by doubling the standard errors of estimate (or the
standard error of the estimated change), dividing this figure by the estimate of balances outstanding (or
by the estimated change in balances), and expressing the resulting figure in percentage terms.
* Indicates a figure greater than 100 per cent.
SURVEY OF DEMAND DEPOSIT OWNERSHIP
the resulting figure in percentage terms. As may be
seen, the relative sampling variations of the esti
mates of outstanding balances at all commercial
banks (upper left-hand portion of the table) are
generally satisfactory. This is particularly the case
for the nonfinancial business and consumer esti
mates where the measures of variation were quite
small in all four quarter-ending months— less than
4 per cent in all instances. The measures of varia
tion for the financial business estimates are some
what higher, but they all indicate the strong (95
per cent) probability that a range plus or minus 7
per cent on either side of each estimate would
include the actual volume of balances held by this
category of owners. The measures of variation in
the monthly estimates for the foreign and all other
categories are somewhat larger but with only one
exception they suggest that the true values for these
balances lie within plus or minus 10 per cent of
the estimates.
The measures of variation for the quarter-toquarter changes in ownership balances at all com
mercial banks (upper right-hand section of the
table) are also quite encouraging. They suggest
that all the estimated quarterly changes in non
financial business, consumer, and foreign balances
were statistically significant— that is to say, two
standard errors of the changes were smaller than
the estimate of change itself. A similar statement
can also be made about two out of the three
467
quarterly changes in financial business balances.
It appears, however, that the estimated changes in
balances held by depositors in the all other cate
gory may be attributable to sampling variation.
A similar picture of statistical reliability is
presented by the measures of variation for the
estimates of balances held by the various owner
groups at weekly reporting banks 3 in each quarterending month and for the quarterly changes in
these estimates (bottom section of Table 1). The
measures of variation indicate that the 95 per cent
confidence range for the estimates of balances held
by financial businesses, nonfinancial businesses,
and consumers is 5 per cent or less on either side
of the estimates in all 4 months. The range for
the other two owner categories, while somewhat
higher, is less than plus or minus 10 per cent of
the estimate. The measures of variation for the
estimated quarterly changes in ownership balances
also suggest that the Survey is performing satis
factorily. All measured changes in nonfinancial
business and foreign balances appear statistically
significant, as do two out of three of the changes
in consumer and financial business balances.
□
3 In order to sim p lify the table and to shorten d iscussion ,
data reflecting the m easures o f variation for estim ates o f
ow nership balan ces m easured in m on ths oth er than those
sh ow n in the table and the coefficients o f variation for
m on th-to-m on th ch an ges in balan ces are not covered in
the A ppend ix. T h ese data w ill be m ade availab le up on
request.
Bank Rates on Business Loans
Revised Series
The Federal Reserve Quarterly Survey of In
terest Rates Charged by Banks on Business
Loans has been revised beginning with the
February 1971 survey. The revision incor
porates a number of technical changes in
coverage, in sampling, and in methods of
calculating average interest rates. Although
the changes have resulted in some disconti
nuities in the series, the basic structure for
collecting information is unchanged for the
most part.
The survey data on short-term loans on
the revised basis will be published regularly,
as in the past, in both the B u l l e t i n and
the Board’s E.2 statistical release, which will
also carry survey data for rates on revolving
credit and long-term loans, which had not
previously been published. Back data for the
added series, as well as the previously pub
lished data on short-term loans, for the pe
riod 1967-70 are provided in the table
on pages 476 and 477.
NATURE OF CHANGES
The most important aspect of the revised
series is the elimination of accounts receiva
ble loans. A recent study of the technical
aspects of the survey indicated a number of
problems of measuring rates on accounts re
ceivable loans, which made it advisable to
eliminate such loans from the survey: For
one thing, the reporting of special fees and
flat charges that often are collected on ac
counts receivable loans to cover the high cost
N o t e .—This article was prepared by Mary F.
Weaver and Edward R. Fry of the Banking Section
of the Board’s Division of Research and Statistics.
468
of administering such loans varied among
banks in ways that made difficult the calcula
tion of comparable effective rates. For exam
ple, in addition to a stated interest rate
charged on these loans, approximately twofifths of the reporting banks imposed (1 ) a
flat charge, or (2 ) a fee that varied with the
line of credit available, or (3) a percentage
fee applied to the line of credit. On the other
hand, some banks excluded such charges
altogether from reported interest rates on
this category of loans and a few banks
omitted reporting of accounts receivable
loans entirely. Such data problems probably
caused a significant understatement of the
rates on these loans as they entered the sur
vey calculations.
A second problem is that with certain
types of fee arrangements, the effective rate
of interest on accounts receivable loans
varied with the maturity and daily-average
size of the loans made under the line of
credit. Because of the nature of this survey
(which reflects terms and conditions at the
time the loans are made) and of accounts
receivable loans (for which the average ma
turity, loan size, and outstanding balance
vary from day to day and cannot readily be
measured), there is no practical way to de
termine the effective interest rate accurately.
A third problem of measuring interest
rates on accounts receivable loans is the
practice of some banks of requiring borrow
ers to make all repayments into hypothe
cated deposits that are credited to the bor
rower’s loan account at fixed intervals. This
practice increases the effective interest rate
by an amount that cannot be measured with
out adding unduly to the complexity of the
survey.
A fourth problem was associated with the
rapid rate of turnover of accounts receivable
loans. Some new loans, for example, are
made to individual customers for as little as
one day. Since the survey calls for reporting
of all new loans made during a specified
period, the rapid turnover of these loans,
which carry relatively high interest rates,
gives them undue weight and causes an up
ward bias in average interest rates derived
from the survey.
In view of all these measurement prob
lems, it was felt that rates on accounts re
ceivable loans could not be accurately mea
sured in the survey and that if these loans
were excluded, the survey would provide a
more accurate measure of interest rates on
other business loans. It should be noted,
however, that the survey, excluding these
loans, does not cover all business loans and
that the loans excluded probably are highercost loans on the average than the loans
covered. Thus, to the extent that there are
systematic shifts, in periods of relatively dif
ferent tightness of credit, between account
receivable loans and other business loans,
the results of the survey must be interpreted
with care.
An important result of the changes in the
survey has been to reduce the reporting
burden on respondent banks. The exclusion
of accounts receivable loans contributed to
this as did a shortening of the period to be
covered. For most banks the sample period
was shortened from the first 15 days in the
survey month to the first seven business days.
Refinements were also made in proce
dures for calculating the interest rates used
in arriving at the survey averages. Formerly,
interest rates for short-term discounted
loans were calculated on an assumed ma
turity of 90 days. In conjunction with the
February 1971 survey, the 12 Reserve
Banks surveyed the maturities of all dis
counted short-term loans made in the sample
period. On the basis of this information, new
average maturities were adopted, for this
and future surveys, with the assumed ma
turity shortened to 68 days for the 35 re
porting centers as a whole. In addition, the
formula to calculate effective interest rates
was modified to reflect annual compounding
instead of the quarterly compounding pre
viously used in the survey. Other changes in
the formula used were minor.
With the elimination of accounts receiva
ble loans and the shortening of the sample
period, weights used for calculating average
interest rates have been changed. A pre
liminary revision of these weights was de
rived from the size and area distributions
of loans reported in the February survey.
These preliminary weights will be used initi
ally in the first three surveys this year. When
data for all four surveys in 1971 are avail
able, a further revision of weights will be
made and data for the 1971 surveys
will be revised on the basis of these new
weights. The weights as revised will be used
for the next 4 years, after which the weight
ing system will be reviewed again.
EFFECTS OF REVISIONS
For some, but not all, of the changes em
bodied in the revision, it is possible to meas
ure the impact of the revision on the pub
lished series. The degree of reduction in
number and dollar volume of loans caused
by shortening the sample period cannot be
ascertained from the February survey. Nor
can one determine the over-all effects of the
revision on changes in short-term rates in the
period between the November 1970 and
February 1971 surveys. However, it is pos
sible to determine the effects on rates of
three of the changes made in the February
survey— the exclusion of accounts receivable
loans, the shift to annual compounding in
469
470
TABLE 1
E F F E C T S O F SU R V E Y R E V IS IO N S ON IN T E R E ST RATES, BY TYPE O F LOAN FEB RU A R Y 1 9 7 1
Per cent per annum
Size of loan (in thousands of dollars)
All
sizes
Item
Long-term
Revolving credit
Short-term
1-9
10-99
1GO499
500999
1,000
and
over
8.05
8.12
- .0 7
7.49
7.65
- .1 6
6.91
7.02
- .1 1
6.64
6.68
- .0 4
6.35
6.41
- .0 6
Size of loan (in thousands of dollars
All
sizes
All
sizes
Size of loan (in thousands of dollars)
1-9
10-99
1GO499
500999
1,000
and
over
8.42
8.38
+ .04
7.58
7.55
+ .03
7.32
7.37
- .0 5
6.91
6.98
-.0 7
6.64
6.76
- .1 2
+ .04
+ .02
- .0 7
-.0 7
-.1 2
6.56
6.56
6.83
6.83
6.80
6.80
6.72
6.72
7.52
7.52
6.77
6.77
1-9
10-99
100499
500999
1,000
and
over
6.34
6.47
- .1 3
7.51
7.98
-.4 7
7.06
7.54
- .4 8
6.70
6.98
- .2 8
6.43
6.54
- .1 1
6.30
6.34
- .0 4
- .0 9
- .3 3
- .3 6
- .2 9
-.1 6
- .0 3
+ .03
- .0 1
All centers
Average rate on unrevised basis 1. ..
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receivDiscounted
loans
(revised
6.58
6.75
- .1 7
6.81
6.90
- .0 9
- .1 9
- 11
-.0 7
+ .05
+ .03
+ .05
+ .02
+ .03
- .0 2
- .0 4
-.1 4
- .1 2
+ .01
+ .05
- .0 1
-.0 9
+ .22
- .2 1
6.26
6.27
—.01
7.76
7.60
+ .16
7.20
7.10
+ .10
6.57
6.50
+ .07
6.35
6.31
+ .04
6.18
6.16
+ .02
6.25
6.26
- .0 1
6.65
6.64
+ .01
6.88
6.89
- .0 1
6.54
6.54
6.27
6.27
6.24
6.24
6.81
6.81
7.08
7.01
+ .07
6.75
6.82
- .0 7
6.80
6.78
+ .02
-4OQ
T •^
+ 06
+ !o i
4- 04
+ .01
-402
”1“ . \J£.
- .0 1
+ .01
- .0 1
+ .07
- .0 7
+ .02
7.75
8.05
- .3 0
7.11
7.36
- .2 5
6.97
7.13
- .1 6
6.40
6.39
+ .01
6.57
6.80
- .2 3
8.53
7.76
+ .77
7.95
7.87
+ .08
6.56
6.93
-.3 7
6.28
6.70
- .4 2
6.60
6.64
- .0 4
7.09
7.00
+ .09
10.36
9.85
+ .51
7.97
8.02
- .0 5
7.62
7.55
+ .07
—. 16
+ .62
+ .21
-.3 7
- .4 2
-.0 4
- .0 7
+ .
+ .03
+ . 06
+ .60
-.0 9
+ .10
-.1 5
+ .09
-.0 2
6.54
6.70
—.16
6.48
6.59
- .1 1
6.53
6.65
- .1 2
6.67
6.90
- .2 3
6.49
6.81
- .3 2
6.57
6.59
- .0 2
6.46
6.56
- .1 0
6.92
6.96
-.0 4
7.56
7.61
-.0 5
7.39
7.41
- .0 2
7.28
7.29
- .0 1
- .1 2
- .1 2
- .2 4
- .3 4
- .0 2
- .1 0
—.04
+ .01
- .0 6
+ .01
+ .04
New York City
Average rate revised survey..............
Average rate on unrevised basis 1. . .
Discounted loans (revised
formula)...........................
-fi -.UAJi
- .0 4
I . I10(L
RESERVE
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receiv-
Other Northeast
Average rate revised survey..............
Average rate on unrevised basis 1. . .
r \ ffarpnr'p
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receivDiscounted
loans
(revised
6.80
7.18
— .38
8.27
8.34
— .07
- .2 4
_ T-J
_
A (\
—. 34
—.24
—.04
+ .07
- .2 1
+ .15
+ .01
+ .11
- .0 1
+ .09
+ .08
+ .05
6.65
6.83
—. 18
7.76
7.77
—.01
7.28
7.40
—. 12
6.82
7.05
—.23
15
—
. 13
North Central
Average rate revised survey..............
Average rate on unrevised basis 1. . .
Discounted loans (revised
formula)......................
- .2 0
*-.09
-.1 6
- .2 9
- .1 3
- .1 9
+ .04
- .0 2
+ .08
+ .04
+ .05
+ .01
+ .05
+ .03
+ .o i
+ .o i
+ .02
1971
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receiv-
6.57
6.65
- .0 8
□ JUNE
- .2 4
+ .06
+ .02
BULLETIN
- .1 4
+ .09
- 02
FEDERAL
13
+ .04
— 08
- .0 7
—.01
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receiv
able ...................................
Discounted loans (revised
formula)...........................
Change in weights..................... .
-.0 5
- .0 5
-.08
-.11
- .0 2
+ .06
- .1 7
+ .08
+ .08
+ .07
+ .05
6.59
6.72
- .1 3
7.83
7.89
-.0 6
6.88
8.23
8.20
+ .03
7.72
7.73
-.0 1
-.0 1
7.00
7.05
-.0 5
-.0 1
6.69
6.66
+ .03
6.62
6.89
- .2 7
8.00
8.01
- .0 1
7.91
8.97
-1 .0 6
7.22
8.19
- .9 7
- .5 9
- .0 3
-.5 8
- 1 .0 6
+ .32
+ .02
—.48
+ .09
- .0 1
6.74
6.90
- .1 6
7.26
7.54
-.2 8
7.03
7.30
-.2 7
7.63
7.59
+ .04
- .2 2
-.0 8
-.2 7
- .2 1
+ .04
- .2 2
- .0 8 '
.01
—.06
6.31
6.49
-.1 8
.24
.77
.53
7.15
7.69
-.5 4
7.06
-.4 0
6.41
6.59
-.1 8
6.25
6.28
-.0 3
- .1 0
.50
-.4 9
-.3 7
.18
-.0 3
- .0 8 '
.03
- . 05
—.03
6.55
6.51
+ .04
+ .04
6.28
6.28
6.12
6.12
7.22
7.22
7.62
7.61
+ .27
+ .01
7.59
7.44
+ .15
+ .24
+ .03
+ .01
+ .15
6.90
6.96
-.0 6
7.84
7.66
+ .18
8.06
7.90
+ .16
- .0 2
+ .11
+ .16
-.02
7.41
7.30
6.81
6.81
8.37
8.10
6.50
6.50
7.00
7.00
6.82
6.84
6.71
6.71
ON
7.04
-.1 6
RATES
Average rate, revised survey............
Average rate on unrevised basis 1. ..
Difference...........................................
BANK
Southeast
Southwest
6.82
6.83
- .0 1
6.63
6.64
- .0 1
6.25
6.26
-.0 7
-.0 9
-.1 7
-.0 3
-rr .04
-.0 2
+ .02
+ .03
+ .01
+ .02
+ .03
+ .01
- .0 8
6.65
6.87
6.47
6.47
6.99
7.04
-.0 5
.05
.06
LOANS
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receiv
able ...................................
Discounted loans (revised
formula)...........................
Change in weights.......................
7.22
7.38
-.1 6
+ .07
West Coast
Average rate, revised survey............
Average rate on unrevised basis * ..,
Difference..........................................
6.63
6.81
-.1 8
8.38
8.61
-.2 3
7.77
8.04
—.27
7.16
7.31
-.1 5
6.77
6.91
-.1 4
Accounted for by:
Change in rate calculation for:
Exclusion of accounts receiv
able ...................................
Discounted loans (revised
formula)...........................
Change in weights.......................
-.12
-.21
-.2 6
- .1 6
-.1 4
-.0 6
-.02
: .oi
+ .oi
6.32
6.32
1 The rates on an unrevised basis are those that would be obtained by processing the February
survey data according to the procedures used in the previous survey. These averages are not
entirely comparable with those published for November and earlier periods because of the
6.46
6.57
- .1 1
7.63
7.61
+ .02
7.21
7.19
+ .02
+ .11
+ .02
+ .11
6.32
6.32
+ .15
- .1 1
-.1 3
exclusion of accounts receivable loans; a new method for calculating interest rates on dis
counted loans; a change of weights applied to each category of loans; and a reduced loan
sample from each reporting bank for which the rate effects cannot be ascertained.
471
6.66
BUSINESS
Average rate, revised survey.............
Average rate on unrevised basis 1. . .
Difference...........................................
472
FEDERAL RESERVE BULLETIN □ JUNE 1971
calculations of rates on discounted loans,
and the revision of weights for size of loan
and geographic areas. For purposes of this
comparison, separate data were collected in
February on the accounts receivable loans
that are excluded in the revised survey, and
interest rate computations were made in
cluding and excluding such loans. Also,
alternative interest rate calculations were
made by applying the formula and weights
used previously, so that the old series could
be compared with the revised series. Table
1 summarizes the measurable effects of the
revision on the three types of interest rates
covered in the February survey— short-term,
revolving credit, and long-term loans.
On short-term loans, as may be noted
from Table 1, the average rate derived in
the revised survey for the 35 centers as a
group was 6.58 per cent, or 0.17 percentage
point lower than the average rate of 6.75 per
cent that would have resulted in the absence
of the three revisions for which the impact
can be measured. The amount of the differ
ence varies by region from 0.01 percentage
point for banks in New York City to 0.38
percentage point for those in other Northeast
centers.
The most important factor reducing the
measured average interest rate in most geo
graphic areas was the elimination of ac
counts receivable loans. This change also
accounted for most of the reduction in rates
by size of loan. In the February survey, re
spondents reported separate data on 2,290
short-term accounts receivable loans; these
loans accounted for 11 per cent of the total
number of loans and for 6 per cent of the
total dollar volume reported (Table 2 ). The
smaller proportionate reduction in dollar
volume resulting from exclusion of these
loans reflects the relatively small average
size of accounts receivable loans as com
pared with other short-term business loans.
Changes in weights reduced weighted
average rates for all geographic areas, but
effects varied by size-of-loan category. The
small rate reduction for New York City re
flected entirely the change in weights, as re
spondent banks in this area had not reported
accounts receivable loans in the past. The
change from quarterly to annual compound
ing of interest rates on discounted loans
tended to raise average rates for all loan
sizes in most geographic areas.
In general, the effects of the various sur
vey changes on interest rates on revolving
credit and long-term loans were similar to
those for short-term rates, as Table 1 shows.
TABLE 2
EFFECT ON NEW S E R IE S O F EXCLUDING A C C O U N T S RECEIVABLE LOANS,
FEBRUA RY 1 9 7 1
Amount of loans
Area
In thousands
of dollars
Decrease
In
Including Excluding
accounts thousands
accounts
receivable receivable of dollars
All centers....................... 3,238,664 3,047,996
New York City...............
Other Northeast..............
North Central.................
Southeast.........................
Southwest.........................
798,323
580,177
858,489
282,603
398,763
320,309
798,323
517,408
788,020
263,464
378,551
302,230
Number
190,668
62,769
70,469
19,139
20,212
18,079
Per cent
Including Excluding
accounts accounts
receivable receivable
Decrease
Actual
Per cent
5.9
20,205
17,915
2,290
11.3
10.8
8.2
6.8
5.1
5.6
1,543
5,257
4,263
3,118
4,113
1,911
1,543
4,349
3,870
2,941
3,678
1,534
908
393
177
435
377
17.3
9.2
5.7
10.6
19.7
473
BANK RATES ON BUSINESS LOANS
SURVEY RESULTS
Large banks typically report that they charge
the prime rate on short-term loans to their
most creditworthy customers and that they
charge higher rates, bearing relatively fixed
differentials above the prime rate, on loans
to customers of lower credit rating. As the
chart shows, average rates for the three cate
gories of business loans covered in the survey
move fairly closely with the prime rate, al
though relationships among rates appear to
shift with cyclical changes in interest rates.
Over the past 4 years, short-term rates
measured in the survey have moved in a
band of 32 to 58 basis points above the
prime rate. The differential— a maximum of
26 points— was relatively stable during this
period compared with the 291-basis-point
range over which short-term rates moved.
The largest differentials occurred in periods
of monetary ease when interest rates were
relatively low, as in 1967, late 1970, and
early 1971, and the smallest in periods of
restraint when rates were high, as in 1969.
In large part, the narrowing of the differ
ential in periods of monetary restraint proba
bly reflects the fact that an increased per
centage of the loans made during survey
periods are prime rate loans. Contributing
to this has been the tendency for credit de
mands to expand more rapidly at large firms
than at smaller ones during business up
swings. Another factor tending to narrow the
differential in periods of rising rates is the
tendency for rates on small loans, which
typically are high relative to those on large
loans, to advance less rapidly than those on
large loans.
In general, average rates on long-term
loans have been fairly close to those on
short-term loans. This relationship probably
reflects the practice of gearing rates on both
such maturities to the prime rate. However,
major changes in the relationship between
BANK RATES on BUSINESS LOANS
Data for February 1971 as shown in the revised survey are indicated by dots. Point for
February on thin line is the unrevised rate as calculated in Table 1.
474
long- and short-term rates do occur. These
tend to show a fairly regular pattern, with
rates on term loans rising above those on
short-term loans during periods of declining
rates, such as in late 1968 and in late 1970
and early 1971, and falling appreciably be
low short-term rates during the rapid ad
vance of rates in early 1969. These changing
relationships are believed to reflect lags in
disbursements that often occur under termloan and revolving-credit contracts, although
banks recently are reported to be writing
more term-loan contracts that gear the in
terest charges to the prime rate.
The marked shift from a sizable positive
to a negative differential in 1969 resulted
from a sharp rise in the term loan rate. At
that time several banks reported that they
had started to charge premium rates on term
loans to some borrowers; in these instances
the premium represented the higher cost to
the bank of obtaining additional funds in the
Euro-dollar market. The differentials be
tween short- and long-term rates show ran
dom fluctuations that may reflect irregu
larities in term-loan rates attributable to
relatively small samples of loans.
Average rates on revolving credits have
shown an even closer and more consistent
relationship to short-term rates than have
those on term loans. This is probably at
tributable in part to the much larger volume
of revolving credits reported, which would
tend to reduce the impact of any unusual
type of loan. On revolving credits, too— ow
ing to the tendency noted above for rates on
loans disbursed on older contracts to lag
rates charged on new loans— the differential
between revolving credit rates and short
term rates tends to show some cyclical vari
ation.
SIZE-OF LOAN DIFFERENTIALS
The most striking aspect of the size-of-loan
data in the survey is the tendency for the dif
FEDERAL RESERVE BULLETIN □ JUNE 1971
ferentials between rates on small and large
loans to decline in periods of rapid advance
in the general level of rates. The decline was
particularly large for loans of $1,000$10,000, as compared with loans of $1 mil
lion and over. This may reflect less tendency
among banks to gear their charges on
smaller loans to the prime rate, with the
result that such rates change less frequently
than the prime rate. Moreover, there are ad
ditional institutional rigidities that influence
the rates charged on small loans— including
usury law ceilings (which generally apply on
loans to unincorporated business only and
thus would affect rates on small loans most
heavily). In addition there may be public
relations considerations. The gradations in
spreads for loans in various size categories in
each survey show the expected drop as the
size of loan increases, and these relationships
remain fairly consistent from survey to
survey.
GEOGRAPHIC DIFFERENTIALS
As the level of interest rates has continued to
advance in recent years, there has been a
pronounced diminution of the spreads be
tween rates reported in the survey for New
York City banks versus rates at banks in
Southwest and West Coast cities. The differ
ential between rates in New York City and
the Chicago area remained relatively narrow
and showed the least change for any area.
Both areas are well supplied with capital
and with financial institutions geared to the
national money market. Hence the survey is
dominated in both areas by banks with
heavy concentrations of prime borrowers.
The rate differential for New York City ver
sus other Northeast cities tends to be the
largest for any district, although in recent
surveys the New York versus Southeast dif
ferential has increased significantly.
The change in relationship between rates
for New York City and the Southeast that
BANK RATES ON BUSINESS LOANS
appeared in data for the recent surveys is
surprising. In 1967, rates in the Southeast
exceeded those at New York City banks by
as much as 26 basis points whereas in 1969,
they were below rates in New York City (the
475
only district where this happened) by as
much as 19 basis points. More recently, how
ever, in the surveys for 1970 and 1971, rates
in the Southeast have again exceeded those
in New York City by widening margins.
A PPEN D IX TABLE 1
G E O G R A PH IC AREAS A N D R E PO R T IN G C E N T E R S FOR REVISED QUARTERLY IN T E R E ST RATE SURVEY
Geographic area
Reporting center
Geographic area
Reporting center
New York City
New York City
Southeast
Other Northeast
Boston
Hartford and
Providence
Buffalo
Nassau County, N.Y.
Rochester
Newark
Philadelphia
Baltimore
Richmond
Washington, D.C.
Charlotte
Atlanta
New Orleans
Nashville
Southwest
St. Louis
Louisville
Memphis
Kansas City
Oklahoma City and Tulsa
Denver
Dallas and Fort Worth
Houston
West Coast
San Francisco
Los Angeles
Seattle
Portland
North Central
Cleveland
Pittsburgh
Cincinnati
Chicago
Detroit
Indianapolis
Milwaukee
Minneapolis and
St. Paul
476
APPENDIX TABLE 2
BAN K RA T E S O N B U S IN E S S LO A N S, QUARTERLY 1 9 6 7 - 7 0
Per cent per annum
Size of loan (in thousands of dollars)
All sizes
1,000 and over
500-999
100-499
10-99
1-9
Area and year
Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov
Short-term loans
1967
All centers...................
New Y ork................
Other Northeast___
North Central.........
Southeast.................
Southwest.................
West C oast..............
1968
1969
1970
7.07
6.87
7.28
7.21
6.78
6.91
7.11
6.80
6.59
7.04
6.87
6.62
6.63
6.83
6.31
6.15
6.62
6.36
6.81
6.64
7.09
6.90
6.01 6.53
6.27 6.72
6.33 6.80
7.81
8.31
8.07
7.72
7.89
7.97
8.96
8.83
9.32
9.06
8.39
8.83
8.94
9.00
8.83
9.36
9.11
8.55
8.81
8.95
7.29
7.13
7.48
7.49
6.79
7.23
7.26
7.84
7.65
8.16
7.95
7.44
7.80
7.75
8.73
8.53
9.01
8.78
8.49
8.61
8.72
8.75
8.59
9.01
8.79
8.54
8.59
8.81
8.60
8.36
8.16
8.26
8.38
5.96
5.71
6.29
5.91
5.94
6.03
6.03
6.73
6.55
6.75
6.80
6.58
6.65
7.26
6.61
6.41
6.61
6.64
6.44
6.63
7.14
6.58
6.33
6.61
6.65
6.38
6.54
7.12
6.60
6.37
6.59
6.67
6.46
6.61
7.08
6.64
6.49
6.84
6.65
6.32
6.50
6.90
6.48
6.27
6.70
6.44
6.46
6.25
6.70
6.41
6.22 6.18
6.37 6.32
6.86 6.84
6.48 6.33
6.22 6.08
6.69 6.57
6.46 6.39
6.25 6.05
6.36 6.26
6.79 6.49
6.16
5.88
6.48
6.13
5.95
6.16
5.88
6.42
6.16
5.97
6.36
6.14
6.73
6.35
6.21
6.41
6.31
6.84
6.60
7.18
6.89
6.61
6.87
6.76
6.89
6.67
7.16
6.96
6.74
6.86
6.86
6.61
6.40
6.95
6.69
6.44
6.48
6.62
6.82
6.71
6.84
6.95
6.57
6.75
7.37
7.18
7.11
7.21
7.30
6.89
7.16
7.68
7.35
7.30
7.49
7.35
7.09
7.20
7.73
7.27
7.16
7.43
7.22
6.98
7.14
7.68
6.76
6.65
7.00
6.83
6.43
6.54
7.00
7.21
7.07
7.48
7.26
6.83
7.02
7.37
7.14
6.95
7.42
7.14
6.85
6.93
7.33
6.56
6.39
6.85
6.62
6.25
6.39
6.62
7.00
6.82
7.33
7.06
6.65
6.85
6.95
7.32
7.13
7.59
7.41
7.01
7.25
7.35
7.86
7.66
8.18
7.89
7.66
7.87
7.83
8.82
8.65
9.14
8.85
8.46
8.85
8.75
8.83
8.66
9.21
8.83
8.58
8.79
8.81
7.73
7.76
7.88
7.79
7.37
7.56
8.09
8.22
8.23
8.31
8.09
7.96
8.27
8.51
8.99
9.12
9.09
8.80
8.59
9.09
9.47
9.05
9.22
9.16
8.77
8.69
9.20
9.45
7.70
7.65
8.03
7.81
7.20
7.42
7.81
8.23 9.14 9.20 7.46
8.14 9.12 9.13 7.30
8.50 9.49 9.57 7.76
8.20 9.14 9.16 7.60
7.91 8.57 8.73 7.09
8.09 8.96 9.02 7.21
8.23 9.23 9.22 7.54
8.01
8.86
8.65
9.23
8.86
8.67
8.87
8.84
8.49
8.24
8.86
8.44
8.44
8.61
8.42
8.50
8.24
8.89
8.47
8.49
8.53
8.54
8.07
7.74
8.47
8.05
8.15
8.08
8.16
9.17
9.31
9.28
8.96
8.82
9.25
9.61
9.05
9.05
9.23
8.80
8.70
9.10
9.49
9.15
9.07
9.41
8.90
8.76
9.08
9.51
8.89
8.67
9.00
8.71
8.72
8.85
9.41
9.26
9.12
9.60
9.24
8.80
9.11
9.32
9.04
8.91
9.34
8.93
8.77
8.90
9.13
9.04
8.89
9.36
9.11
8.65
8.94
8.96
7.27
7.14
7.48
7.34
6.96
7.08
7.50
9.07
8.95
9.42
8.99
8.79
8.84
9.19
8.79
8.60
9.09
8.72
8.64
8.53
8.99
5.90
5.77
6.09
5.92
5.84
5.95
6.03
5.73 5.72 5.73
5.59 5.58 5.63
6.00 5.99 5.95
5.76
5.67
5.78
5.72
5.74
5.68
5.82
5.76
6.90
6.69
7.14
7.08
6.61
6.78
6.78
6.57 6.19 6.68 6.70
6.40 6 .O61 6.52 6.60
6.78 6.48 6.90 6.83
6.66 6.18 6.76 6.78
6.42 6.04 6.37 6.54
6.48 6.42 6.86 6.72
6.52 6.03 6.54 6.63
6.40
6.32
6.59
6.55
5.75
8.84
8.65
9.15
8.93
8.48
8.75
8.82
8.84
8.74
9.18
8.81
8.60
8.76
8.76
7.16
7.06
7.18
7.26
6.84
7.18
7.18
5.75
5.74
5.81
5.78
7.70
7.60
7.84
7.76
7.45
7.76
7.70
8.67
8.59
8.77
8.72
8.45
8.84
8.56
6.10
6.40
8.66
8.58
8.85
8.70
8.45
8.66
8.67
8.34 8.87 8.43 8.46 8.09 8.67 8.25 8.25 7.74
8.12 8.72 8.31 8.23 7.83 8.57 8.13 8.12 7.59
9.18 8.72 8.68 8.30 8.91 8.45 8.49 7.99
8.88 8.44 8.46 8.26 8.71 8.24 8.27 7.78
8.54 8.31 8.45 7.95 8.63 8.15 8.15 7.78
8.86 8.32 8.48 7.99 8.67 8.58 8.33 7.69
8.98 8.50 8.61 8.12 8.66 8.13 8.28 7.90
BULLETIN
All centers...................
New Y ork................
Other Northeast___
North Central.........
Southeast.................
Southwest................
West C oast..............
5.89 5.89 5.90
5.66 5.69 5.70
6.10 6.08 6.19
5.89 5.89 5.87
5.71 5.78 5.75
5.97 5.95 5.95
6.03 5.95 5.89
5.95
5.66
6.29
5.92
5.92
6.01
6.02
RESERVE
All centers...................
,New Y ork................
Other Northeast___
North Central.........
Southeast.................
Southwest................
West Coast..............
6.13
5.89
6.39
6.17
6.03
6.13
6.27
5.95
5.67
6.32
5.91
5.93
6.04
6.05
FEDERAL
All centers...................
New York................
Other Northeast___
North Central.........
Southeast.................
Southwest.................
West C oast..............
6.17
5.95
6.42
6.18
5.96
6.12 6.10 6.09
6.31 6.38 6.34
6.13
5.86
6.45
6.12
6.07
6.18
6.26
Revolving credit loans
5.85
5.65
5.78
5.88
5.84
6.19
5.94
5.83 5.82 6.95
5.65 5.62 6.30
6.02 5.98 6.77
5.86 5.75 6.88
5.90 6.14 6.00
6.11 6.51 6.75
5.89 5.89 7.57
6.84
5.95
6.87
6.72
5.97
6.61
7.36
6.78 6.93 6.79
5.84 6.03 6.01
6.66 6.86 6.57
6.41 6.79 6.54
5.97 5.85
5.78 5.79 5.54 5.63
5.93 6.24 5.78 6.09
6.27 5.76 6.34 5.91
6.01 6.18 6.06 6.13
6.45 6.06 6.42 6.12
6.20 6.18 6.17 5.95 5.84
6.68 6.66 6.70 6.33 6.22 6.18 6.13 6.01
5.87
6.46
6.92
6.00 6.01 6.00 5.98
6.95 6.98 6.96 6.64
7.38 7.48 6.97 6.79
5.81
6.48
6.71
6.32
6.94
6.76
5.91
6.79
6.57
6.18
6.79
6.79
5.82
6.59
6.08
5.83
6.49
6.51
5.78
6.09
6.43
5.72
6.17
6.32
5.73
6.56
6.37
5.79
6.34
5.87
5.74
5.93
5.81
6.23
6.30
5.84
5.74
5.64
5.81
5.77
5.67
6.11 6.00 5.81
6.13 5.81 5.79
5.98
5.83
5.98
5.88
5.93
5.74
5.65
5.60
5.73
5.71
5.72
5.59
5.89
5.65
6^57
5.78
1971
6.05
5.83
6.17
5.91
5.99
6.27
6.22
□ JUNE
1967
All centers...................
New Y ork.................
Other Northeast.
North Central..........
Southeast..................
Southwest.................
West Coast...............
6.77
6.58
6.96
6.78
6.91
6.86
6.84
6.46
6.30
6.59
6.46
6.52
7.06
6.50
7.06
6.34
6.98
6.68
6.05
7.36
7.70
7.45
6.62
7.71
7.14
6.72
7.46
7.84
7.47
6.33
7.91
7.60
6.31
7.81
7.76
7.32
5.76
7.76
7.45
6.18
7.03
7.72
6.91
6.12
7.28
6.80
6.38
6.65
7.00
7.31
6.43
7.75
7.07
7.11
7.48
7.34
7.44
6.63
8.17
7.13
7.22
7.36
7.49
7.26
6.56
7.55
7.05
7.08
7.16
7.35
6.51
6.24
6.79
6.47
6.34
6.56
6.56
6.96
6.47
7.36
6.93
7.84
7.14
7.01
7.04
6.64
7.46
6.99
7.92
7.20
7.07
6.83
6.48
6.75
6.80
7.59
6.92
6.91
6.24
6.10
6.52
6.10
6.32
6.37
6.30
6.82
6.56
6.57
6.69
7.16
7.34
6.94
6.70
6.64
6.99
6.88
6.50
6.52
6.67
6.45
6.35
6.42
6.43
6.04
6.99
6.45
6.14
6.07
6.16
6.08
6.00
6.22
6.21
6.57
6.36
6.74
6.71
7.54
6.73
6.63
6.70
6.57
6.66
6.73
6.70
6.73
6.78
6.37
6.27
6.44
6.40
6.26
7.14
6.38
7.23
7.14
7.22
7.35
7.22
7.59
7.22
7.67
7.55
7.69
7.68
7.61
7.95
7.72
8.65
8.58
8.93
8.64
8.57
9.10
8.63
8.67
8.59
8.73
8.76
8.40
9.22
8.63
7.72
6.32
7.84
7.56
6.51
7.74
8.36
8.38
7.43
8.41
8.46
8.00
8.29
8.58
8.81
8.60
8.57
9.02
8.01
9.36
9.14
8.89
6.85
9.32
8.95
8.02
9.74
9.11
7.82
7.01
7.92
7.84
7.39
7.46
7.96
8.13
7.58
8.26
8.36
7.83
7.85
8.18
8.89
8.23
8.86
9.06
8.08
9.21
8.91
9.05
8.32
8.99
9.32
8.27
9.34
9.07
7.42
7.07
7.29
7.41
7.37
7.62
7.51
7.87
7.65
7.79
7.82
7.54
7.82
7.98
8.68
8.48
8.73
8.81
7.84
8.93
8.68
8.79
8.68
8.81
8.93
8.21
9.21
8.73
7.21
7.09
6.85
7.41
7.14
7.64
7.18
7.71
7.59
7.70
7.70
7.70
7.89
7.74
8.67
8.54
8.50
8.60
8.91
8.89
8.73
8.71
8.70
8.66
8.72
8.50
9.06
8.67
7.18
7.15
7.18
7.33
7.25
7.57
7.12
7.61
7.53
7.58
7.63
7.50
8.06
7.64
8.63
8.60
9.08
8.61
8.88
9.24
8.59
8.63
8.58
8.69
8.73
8.50
9.27
8.59
8.62
8.53
8.87
8.73
8.69
9.27
8.56
8.19
8.14
8.48
8.15
8.12
8.83
8.16
8.29
8.15
8.44
8.37
8.24
8.88
8.29
7.86
7.69
8.26
7.94
8.23
8.42
7.83
9.16
8.26
9.13
9.22
8.48
9.44
9.49
9.04
8.32
8.91
8.90
8.49
9.01
9.44
9.32
8.04
9.51
9.22
8.50
9.16
9.75
9.18
7.43
9.99
8.58
8.46
9.64
9.44
9.18
8.35
9.62
9.46
8.56
9.25
9.14
9.03
8.02
9.28
9.07
8.58
8.89
9.12
9.11
7.84
9.36
9.23
8.60
8.88
9.23
8.85
7.83
9.06
8.62
8.09
9.32
8.92
8.82
8.71
9.11
8.89
9.13
9.31
8.72
8.53
8.19
8.65
8.67
8.20
9.12
8.49
8.53
8.28
8.36
8.74
8.33
9.16
8.48
8.21
7.73
8.33
8.14
8.02
8.80
8.27
8.63
8.41
8.81
8.66
8.59
9.15
8.61
8.26
8.19
8.52
8.33
7.59
8.62
8.22
8.39
7.99
8.32
8.53
8.09
8.90
8.49
7.93
7.74
8.19
7.95
8.27
8.52
7.85
8.57
8.53
8.71
8.69
8.59
9.31
8.49
8.09
8.14
8.31
8.03
8.33
8.77
8.03
8.21
8.16
8.34
8.28
8.20
8.73
8.21
7.75
7.68
8.12
7.88
8.56
7.98
7.68
5..69
5..37
6,.10
6,.01
5.90
5.86
5.94
5.88
1969
All centers...................
New York................
Other Northeast___
North Central.........
Southeast..................
Southwest................
West Coast...............
1970
All centers...................
New York.................
Other Northeast___
North Central.........
Southeast..................
Southwest..................
West Coast...............
LOANS
6.67
6.39
6.91
6.74
7.42
7.02
6.74
RATES ON BUSINESS
6.22
6.08
6.40
6.14
6.19
6.37
6.31
BANK
1968
All centers...................
New Y ork................
Other Northeast
North Central.........
Southeast.................
Southwest.................
West Coast..............
i. L o n g - te r m lo a n s
1967
All centers...................
New York................
Other Northeast.
North Central.........
Southeast.................
Southwest................
West Coast..............
1968
All centers...................
New York................
Other Northeast.
North Central.........
Southeast..................
Southwest................ .
West Coast..............
5.84
5.46
6.15
6.11
6.08
5.93
6.18
5.99
5.81
6.28
5.93
6.01
6.25
6.17
5.90
5.80
6.03
5.79
6.17
6.07
6.28
6.01
5.88
6.11
5.97
6.62
6.16
6.32
6.62
6.96
6.50
7.65
5.83
5.97
6.99
6.36
6.11
6.37
6.40
6.51
6.17
6.94
6.26
6.50
6.36
6.32
6.25
5.79
6.80
6.53
5.95
6.53
6.32
6.58
6.68
7.14
6.71
6.42
6.89
6.74
6.61
6.54
6.84
6.48
6.11
6.47
6.47
6.17
6.58
7.07
6.33
6.22
6.41
6.01
6.36
6.32
7.19
6.54
5.84
6.78
6.58
6.73
6.52
6.58
6.11
6.05
6.08
6.30
5.80
5.99
6.08
6.19
6.05
6.04
6.16
6.14
6.53
6.36
6.31
7.05
6.07
6.20
6.10
5.98
6.54
6.34
5.94
6.35
6.34
6.57
6.47
6.81
6.22
6.10
6.07
6.17
6.00
6.65
6.39
5.93
5.60
5.81
5.80
6.00
6.56
6.50
5.88
5.72
5.96
5.71
6.83
6.18
6.17
6.17
6.25
5.83
5..94
5,.80
6,.42
5.,87
5..75
6.66 5.!67 6.,05
6.49 6. 11 6..01
5.80
5.71
5.98
5.71
6.86
6.05
6.15
*5.89
6.17
6.35
6.03
6.49
6.65
6.27
6.69
6.21
6.73
6.80
6.78
6.34
6.60
7.09
7.07
7.03
6.67
7.22
7.16
6.82
7.76
6.99
6.79
6 •88
6.96
6.47
6.98
6.92
6.82
6.71
6.34
6.57
6.92
6.69
6.83
6.87
7.04
6.98
6.97
7.05
6.86
7.15
7.34
7.27
6.52
7.22
7.72
6.41
7.36
7.74
7.08
6.36
7.56
7.09
6.56
6.56
7.04
6.82
6.39
6.94
6.82
6.78
6.88
7.01
7.14
6.71
7.47
6.99
6.71
7.23
7.30
7.41
6.96
7.84
7.41
6.86
7.25
7.46
7.09
6.68
7.24
7.05
7.26
7.04
7.43
6.56
6.20
6.39
6.78
6.58
6.77
6.65
7.01
7.02
6.97
7.04
6.78
6.95
7.25
7.20
7.25
7.43
7.09
6.69
7.21
7.14
6.93
6.87
6.93
6.96
7.24
6.83
7.02
6.37
5.96
6.30
6.63
6.00
6.46
6.57
6.77
7.43
6.40
6.58
6.87
6.62
7.16
7.02
7.09
7.27
6.69
6.76
7.18
7.21
6.92
6.68
7.06
6.79
7.24
7.28
6.83
6.,28
6.,01
6..50
6. 61
5.,75
6. 69
6. 00
6. 65
6.,75
6.,73
6.,12
6.,21
7.,23
7. 00
6.97
6.60
7.08
7.24
7.00
8.14
6.88
6.74
6.90
6.90
6.28
6.50
6.86
6.73
6.64
5.84
7.45
6.82
7.30
7.50
7.16
7.87
7.97
7.76
7.91
7.40
7.73
7.70
8.66
8.46
9.00
8.75
7.98
8.83
8.58
8.86
8.71
8.87
9.03
9.45
9.25
8.50
7.95
7.47
9.21
7.29
6.63
6.78
7.67
7.68
7.78
8.07
7.91
6.97
6.75
8.33
8.77
8.90
9.16
8.97
6.70
8.31
9.41
8.72
8.53
8.77
8.98
8.83
8.32
9.04
7.51
6.94
7.70
7.49
6.85
7.60
8.12
8.09
7.69
8.62
8.12
7.33
7.76
8.08
8.93
8.60
9.33
9.18
8.05
8.65
8.60
9.07
8.54
8.94
9.32
9.04
9.26
9.21
7.39
7.61
7.40
7.14
7.52
7.32
7.79
7.95
7.97
7.89
8.01
7.60
7.95
8.07
8.68
8.69
8.94
8.64
7.92
8.49
8.97
8.71
8.72
8.63
8.83
8.46
8.88
8.24
7.49
7.54
7.49
7.51
6.95
7.34
7.70
7.81
8.08
7.77
7.64
8.00
7.91
7.48
8.73
8.77
8.64
8.90
7.79
8.90
8.01
9.02
8.54
9.42
9.08
7.25
9.45
8.50
6. 35
5. 60
7. 39
6. 59
7. 47
7. 60
6. 86
7. 85
7. 97
7. 62
7. 93
6. 98
7. 62
7. 62
8.63
8.42
9.05
8.71
8.17
8.96
8.57
8.86
8.72
8.82
9.05
9.14
9.34
8.50
8.67
8.81
8.74
8.53
8.19
8.82
7.95
8.25
8.35
8.56
7.65
8.49
8.62
8.39
8.66
8.26
8.82
9.29
8.50
8.13
9.29
8.31
8.28
8.39
8.38
8.69
8.28
7.95
8.49
6.11
9.11
8.54
7.05
8.25
9.13
9.14
8.59
9.74
8.79
8.66
8.73
8.81
9.51
8.42
10.44
9.65
8.79
8.19
9.32
9.14
7.63
10.28
8.39
8.44
8.33
9.16
9.20
8.43
9.57
9.68
7.92
8.82
9.48
8.92
8.73
9.31
8.80
8.92
8.71
8.70
8.94
7.82
9.25
9.28
8.44
8.96
8.83
8.66
8.46
8.62
8.65
8.90
8.75
8.78
8.93
8.84
8.76
9.21
8.01
9.07
8.94
8.60
8.48
8.67
8.52
8.04
8.90
8.56
8.74
7.61
9.29
9.35
8.57
8.54
8.31
8.29
7.85
8.10
8.47
8.76
8.57
8.32
8.64
8.31
8.54
8.54
6.58
9.67
8.80
8.44
8.59
8.52
8.01
8.92
8.42
9.75
8.72
8.70
8.90
8.99
9.55
8.50
7.07
7.97
7.58
8.67
7.66
7.78
8.39
7.53
8. 59
8. 84
8. 67
8. 32
9. 29
8. 54
7. 49
8. 12
8. 32
8. 43
7. 34
8. 59
8. 55
8. 14
8.62
8.28
8.60
9.33
8.00
7.81
9.85
8.33
8.35
8.35
8.47
8.91
8.09
7.86
1969
All centers...................
New Y ork................
Other N ortheast.. . .
North Central.........
Southeast.................
Southwest................
West Coast..............
1970
All centers...................
New York................
Other Northeast___
North Central.........
Southeast.................
Southwest................
West Coast..............
N o t e .— A ll d a t a a r e o n t h e u n r e v is e d b a s is .
477
Statements to Congress
Statem ent by A rth u r F. Burns, Chairman,
B oard of G overnors of the F ederal R eserve
System , before the C om m ittee on Banking,
Housing and Urban Affairs, U.S. Senate,
M ay 1 9 ,1 9 7 1 .
I appreciate this opportunity to appear be
fore you on behalf of the Board of Governors
to discuss recent developments in the inter
national monetary system.
I should like to begin by sketching in the
background of the events of the past few
weeks. A careful look at the background
will assist all of us in maintaining perspective
on the dramatic happenings in the fore
ground.
The basic fact to keep in mind can be
stated simply: on top of an underlying and
long-lasting deficit in our balance of pay
ments, there has been a massive flow of
short-term funds from the United States to
Europe within the past year.
I shall return later to a discussion of the
underlying imbalance in our payments
position. By itself, this imbalance is nowhere
near large enough to have created a crisis.
Let us first focus, therefore, on the sub
stantial flow— perhaps I should say reflow—
of short-term capital across the Atlantic.
SHORT-TERM CAPITAL FLOW
The short-term capital that has moved from
the United States to Europe in the past
year largely represents funds that had shifted
from Europe to the United States during
1969 when monetary policy was much
tighter here than in Europe. At that time,
while both fiscal and monetary policies in
our country were aimed at combating
excess demand, Europe was in a more tran
478
quil stage of economic expansion. American
banks, finding their deposits running off as
short-term market rates of interest rose
above the Regulation Q ceilings, deemed it
advantageous to borrow funds from their
branches abroad in order to meet domestic
demands for credit. The branches in turn
bid for funds in the Euro-dollar market, and
the interest rates they offered were attractive
enough to induce foreigners, mostly in
Europe, to shift out of assets in their own
currencies into dollars. The result was that
upward pressure was exerted on interest
rates in some European countries and for
eign central banks experienced a reduction
in their dollar reserves.
It is this process that was reversed over
the past year.
Once excess demand for goods and
services was brought under control in the
United States, the Federal Reserve shifted its
policies progressively away from severe
restraint and toward moderate ease, in order
to assure that the desired cooling off of
demand conditions did not go so far as to
create a cumulative recession. Meanwhile,
many European countries experienced an
intensification of economic activity com
bined with a strong acceleration of wage
costs. As a result, monetary policies were
tightened in Europe in the latter part of
1969 and in 1970.
In these circumstances, short-term interest
rates fell in the United States relative to
Europe. American banks found that they
could now attract funds at home at lower
cost than what they were paying in the Euro
dollar market, and they therefore started to
repay what they had earlier borrowed from
their branches. Meanwhile, European bor
rowers— both private corporations and gov
ernmental entities— were finding that they
could avoid domestic credit stringency and
pay lower interest rates by borrowing in
the Euro-dollar market. The massive repay
ments of liabilities by U.S. banks to their
branches were the result not only of a push
from the United States, where monetary
policy was easing, but also of a pull from
Europe, where credit conditions remained
tight.
Thus, what we have been faced with in the
past 2 years has been a disparity in the
phasing of the business cycle in Europe and
the United States. Given the existence of
such a disparity, it is understandable that
there has also been a disparity in monetary
conditions, first one way and then the other.
In a world of convertible currencies in which
many business corporations and financial
institutions command large sums, differences
in monetary conditions can induce sizable
movements of short-term capital. These
swings in short-term capital have no doubt
been facilitated by the existence of the Euro
currency markets. But it would be a mistake
to believe that the existence of these markets
caused the flows. The cause lies in the differ
ence in phasing of basic economic and
monetary conditions.
The major pull on short-term funds came
from Germany, where the central bank made
especially strong efforts to restrain the avail
ability of domestic credit but where private
borrowers were quite free to seek loans
abroad. There was thus a reciprocal inter
action: decisions by U.S. banks to shift
from more costly liabilities in the Euro
dollar market to less costly liabilities at home
released funds for lending to European com
panies; but the demand for funds by these
companies put upward pressure on Euro
dollar rates and increased the incentive for
U.S. banks to repay their Euro-dollar lia
bilities. In the process, dollars moved in
large volume into foreign reserves and the
efforts of foreign central banks to combat
inflation were to some degree undermined.
One other aspect of this flow should be
mentioned. The differential in interest rates
between the United States and Europe, in
cluding the Euro-dollar market, led a num
ber of central banks to shift dollar reserves
held in the United States to higher yielding
deposits in the Euro-dollar market. Whether
they engaged in this practice directly or
through the Bank for International Settle
ments, the result was to intensify the problem
caused by the flow of short-term capital
across the Atlantic. Such placements of cen
tral bank foreign exchange reserves in the
Euro-dollar market made funds available to
European borrowers— thus tending to un
dermine tight money policies in Europe—
and led to the creation of official dollar hold
ings abroad on top of the dollar reserves that
originated in the U.S. balance of payments
deficit.
ACTIONS TO DEAL WITH THE CAPITAL FLOW
As I have already noted, the flow of short
term funds abroad was a result of a U.S.
push as well as a European pull. For our
part, the U.S. monetary authorities took
various actions designed to reduce or inter
cept the flow of short-term capital. The
motivation for such actions was to moderate
the U.S. balance of payments deficit and the
attendant build-up of dollars in the hands of
foreign central banks.
I shall merely identify, without discussing
at length, the actions taken by the U.S.
Government.
(1 )
The Federal Reserve’s Euro-dollar
regulations, first adopted in 1969 in order
to check the inflow from Europe, contained
a feature— automatic downward adjustment
of the reserve-free base— that provided some
479
480
incentive for banks to hold on to their Euro
dollar liabilities.
(2 ) In November 1970 the Federal Re
serve raised the marginal reserve require
ment on bank borrowings of Euro-dollars
above the reserve-free base from 10 to 20
per cent. This measure reminded banks that
preservation of the reserve-free base might
be of value to them.
(3 ) The Federal Reserve extended the
automatic downward adjustment to reservefree bases of banks on the so-called 3 per
cent basis and gave these banks time to
acquire Euro-dollar liabilities.
(4 ) Federal Reserve open market pur
chases were conducted, insofar as practi
cable, in coupon issues rather than Treasury
bills, so as to moderate downward pressure
on short-term interest rates without inter
fering with the basic objectives of monetary
policy.
(5 ) Since mid-March, a moderate ad
vance of short-term interest rates was
tolerated by the Federal Reserve, mainly for
domestic reasons, but partly also because it
helped to narrow the gap between U.S. and
European interest rates.
(6 ) The Treasury Department, in its
debt management operations, placed more
stress on issuing short-term securities, there
by avoiding upward pressure on long
term— but not on short-term— interest rates.
(7 ) The Export-Import Bank and the
Treasury issued $3 billion of securities to
foreign branches of American banks. These
special issues intercepted funds that would
otherwise have probably landed in foreign
central banks.
Meanwhile, European central banks acted
constructively to narrow the differential in
interest rates. The central bank in Germany
and in a number of other countries, moti
vated by varying combinations of domestic
and external considerations, reduced their
FEDERAL RESERVE BULLETIN □ JUNE 1971
discount rates in early April. Short-term
rates on market instruments also declined.
THE SITUATION ON THE EVE OF THE
CRISIS
By early April a convergence of interest
rates was well under way, and we had reason
to believe that we had passed the period of
maximum capital flow from the United
States to Europe. In fact, our statistics show
that in April the flow of dollars from our
banks to Europe subsided markedly. Not
only that, but plans were well advanced to
check further creation of Euro-dollars by
foreign central banks and to assist, through
the U.S. Treasury, the recycling of dollars
from Europe to the United States.
Unhappily, this situation of relative calm
in foreign exchange markets was disturbed
by various news items, beginning with re
ports towards the end of April about a dis
cussion among the Finance Ministers of the
European Economic Communities concern
ing a proposal for the EEC currencies to
float together against the dollar. A little
later, five economic research institutes of
Germany issued simultaneous reports rec
ommending that the Deutsche mark be per
mitted to float or be revalued. And the
German Economics Minister was reported
to have characterized these recommenda
tions as constructive. The background for
these developments is quite clear: the in
tensification of inflationary pressures had
given rise to a major political problem in
Germany and exchange rate action came to
be regarded by some prominent men of
affairs as an appealing solution to this
problem.
These events were sufficient to generate
an enormous wave of speculation about a
possible upward move of the D-mark and
other currencies. Several European central
banks ceased intervening in the exchange
STATEMENTS TO CONGRESS
markets and, after a Brussels meeting on
May 8 and 9 of the Common Market
authorities, Germany and the Netherlands
decided to let their currencies fluctuate
beyond the customary margin, while Switzer
land and Austria revalued, and Belgium
adapted its dual-exchange market system to
the new situation. France and Italy decided
to leave their exchange policies unchanged.
THE PRESENT SITUATION
The options open to the German authorities
appeared to be either to introduce controls
on the inflow of capital or to take action in
the exchange rate field. They chose the
latter but agreed with their Common Market
partners to deliberate by July 1 on appro
priate measures to discourage inflows of
capital and to neutralize their effects on the
internal monetary situation.
How long the D-mark and the guilder will
float is uncertain and is, of course, a matter
for determination by the authorities of those
countries in accordance with International
Monetary Fund rules.
It is much too early to evaluate the effects
of the crisis. We do know that it has gen
erated strong resentments both among Euro
pean governments and toward the United
States. Whether or in what ways these senti
ments will affect the future behavior of
nations remains to be seen. We can, how
ever, draw some lessons for our own
policies.
LESSONS FROM THE CRISIS
As I have already stressed, the flow of dollars
to Europe in the past year has to a major
extent taken the form of short-term funds
responding to differences in monetary con
ditions, which in turn reflected differences in
business cycle phasing. Nevertheless, this
flow came on top of a persistent deficit in
our underlying balance of payments. Had
481
such a persistent underlying deficit not
existed, the recent crisis would not have
been interpreted, as it was in some quarters,
as a dollar crisis.
The underlying U.S. deficit, like the short
term capital flow, is attributable to actions
and policies of other countries as well as to
those of our own country. The United States
cannot restore equilibrium to its balance of
payments without acceptance or comple
mentary actions abroad. But we must do
what it is in our power to do, while we
make efforts to persuade other countries
to complement our actions.
What then can we do to improve the
international position of the dollar? I see
no real conflict between our domestic and
our balance of payments objectives. The
frequently suggested prescription of raising
interest rates would not meet our lasting
needs at home or abroad.
(1 ) The overriding need is to restore
price stability even as the present slack in
our economy is taken up. I believe, with
growing conviction, that a cogent incomes
policy is a necessary part of the effort to
restore price stability.
(2 ) Until a better price performance
makes it possible for us to rebuild a healthy
trade surplus, we must be prepared to main
tain our restraints on private capital outflow.
I can think of nothing that would arouse
greater resentment abroad and weaken the
dollar more than an attitude of neglect that
included dismantling or even relaxing our
existing programs to restrain the outflow of
U.S. capital.
(3 ) We need to persuade other nations
to relax promptly the restrictions on their
imports and on investments abroad by their
own citizens, besides undertaking a sig
nificantly larger contribution to the defense
of the Free World.
(4 ) In the future, we must work with
other nations to try to bring about smaller
482
FEDERAL RESERVE BULLETIN □ JUNE 1971
divergences of monetary policies. While
many Europeans feel that the United States
depended excessively on monetary ease in
the past year, there are surely grounds for
holding that the Europeans relied excessively
on monetary stringency during this period.
A more active use of fiscal policy by each
major country in the interest of its own
economy could, if found feasible, materially
reduce divergences in monetary policies and
thereby limit short-term movements of funds
and payments imbalances.
(5 )
At the same time, measures can be
adopted to offset the effects of those short
term capital flows that cannot be prevented.
Such measures might include issues of
securities by the U.S. Government abroad to
absorb funds from the Euro-dollar market,
and the provision of improved investment
outlets in the United States for foreign cen
tral bank reserves.
CONCLUSION
Let me say in closing that, despite recent
events, I see no reason for gloom about our
balance of payments as we look ahead.
First, our price performance is likely to be
better than that of many other industrial
countries, especially if we adopt a stronger
incomes policy. This will permit us to regain
competitive strength that we probably lost
in the second half of the 1960’s.
Second, our receipts of investment income
from abroad have been rising rapidly. We
expect this to continue even as rewards from
investment at home, which affect both our
capital and current accounts, loom larger.
Third, we have seen in recent years a large
increase in foreign investment in the U.S.
stock market. This too should continue,
provided we maintain a strong and healthy
economy and take measures to prevent re
currences of the sort of speculative crisis that
has occurred recently.
Fourth, the continuing reduction of our
troops in Vietnam is diminishing the military
drain on our balance of payments.
Fifth, the bulk of the short-term capital
outflow is now behind us. U.S. banks have
reduced their liabilities to their branches
from over $14 billion in early 1970 to about
$2 billion presently. Thus even before our
underlying payments position improves, our
deficit on the official settlements basis should
fall sharply from its rate of the last year or
so.
These favorable prospects can be has
tened, as I have suggested earlier, if they
are accommodated to by other countries.
The balance of payments is, by definition, a
flow between countries or regions. The U.S.
deficit is the rest of the world’s surplus. The
rest of the world must be prepared to see
its surplus decrease if the U.S. deficit is to
decrease. This simple arithmetic truism has
important policy implications for our major
trading partners as well as for us.
Statement of J. L. Robertson, Vice Chair
man, Board of Governors of the Federal
Reserve System, before the Subcommitee on
International Trade of the Committee on
Banking and Currency, House of Repre
sentatives, M ay 19, 1971.
Mr. Chairman, I am pleased to appear
before your committee to discuss with you
the views of the Board of Governors on H.R.
8181. The Board has a strong interest in this
bill because two of its three titles would
directly affect important aspects of our
operations. Title I would require the Federal
Reserve to grant credit, under certain speci
fied interest rate spreads, to any federally
insured bank seeking funds to finance the
production or sale of goods for export from
this country. Title II would require the Fed
eral Reserve to exclude from the coverage
STATEMENTS TO CONGRESS
of its Voluntary Foreign Credit Restraint
(V FC R ) guidelines any credit extended by
banks or other financial institutions to
finance exports of U.S. goods.
Governor Brimmer and I would like to
present the Federal Reserve position on
these two sections of the bill in two parts. I
will comment first on Title I. Although I was
responsible for managing the Board’s VFCR
program in its early years, Governor Brim
mer has had responsibility for its adminis
tration since mid-1968— and I might add
that he has done an excellent job of it. It is,
therefore, more appropriate for him to com
ment on that part of the bill.
Another topic of special interest to our
Board, which I understand your subcom
mittee is also considering, is the question
whether the Export-Import Bank should be
placed outside Federal budget totals and
ceilings on expenditures and net lending.
While Title III of H.R. 8181 contains several
amendments broadening the authority of the
Export-Import Bank, it leaves the budgetary
status of the Bank unchanged. H.R. 5846,
on the other hand— which I understand is
also on your subcommittee’s agenda— would
take the Bank out of the budget totals. Near
the end of my remarks I would, therefore,
like to reiterate briefly the Board’s position,
already communicated to other committees
of Congress, supporting retention of the
Bank in the budget.
HOW TITLE I WOULD WORK
Title I of the proposed bill would, in effect,
provide any federally insured bank auto
matic access to Federal Reserve credit in
amounts limited only by the volume of ex
port paper in the bank’s portfolio. Such
paper would be discounted by Federal Re
serve Banks at the discount rate or 6 per
cent, whichever was lower, for short-term
paper. For 1- to 5-year paper, the maximum
rate would be 5 per cent; and for longer-
483
term paper, 4 per cent. Under this arrange
ment the spread to the commercial bank
(i.e., the difference between the rate charged
the customer and the rate at which the loan
was discounted by the Reserve Bank) would
be allowed to range from 3A to 2 Vi per
centage points, depending on the remaining
maturity of the loan, whether the exports
involved were destined for a developed or a
developing country, and whether the loan
was guaranteed or insured by the ExportImport Bank.
The extent to which U.S. banks would
take advantage of such an opportunity to
discount their export loans could be expected
to vary with domestic interest rate conditions
since banks would be limited as to the in
terest rate they could charge the exporter
and still use the Federal Reserve facility.
At times when banks were highly liquid and
time deposits or other funds to finance their
loans could be obtained in the market at
rates below the prescribed Federal Reserve
minimums, there would be little disposition
to take advantage of the facility. But in
periods when bank funds were more costly
than the maximum 6, 5, and 4 per cent
discounting rates specified, banks would be
encouraged to use the facility both to make
new export loans and to unload their hold
ings of outstanding export paper on the
System.
The opportunity to obtain instant liquidity
by unloading export loans on the Federal
Reserve would, of course, be quite valuable
to a bank in periods when monetary policy
was in a posture of anti-inflationary restraint.
It should be noted in passing, however, that
this advantage would be available only to
a relatively small number of institutions. The
bulk of U.S. foreign lending is carried on by
less than 200 banks, and most of the dollar
volume of export financing is concentrated
in a much smaller number of large city
banks.
484
FEDERAL RESERVE BULLETIN □ JUNE 1971
Where banks did unload outstanding ex
port loans in periods of general monetary
restraint, the reserve funds they so acquired
would most likely be used to support addi
tional lending to preferred customers for
domestic purposes rather than to export
customers. However, the combination of low
maximum discount rates and fixed spreads
would at the same time assure unusually
favorable rates on new export loans. In these
circumstances foreign customers who might
normally finance their imports from the
United States in their own countries would
be perfectly free to seek and, so long as the
bargain rate relationships were maintained,
to obtain through their American bankers
unlimited credit from the Federal Reserve
to finance imports.
It is important to distinguish the basic
difference between this proposed discount
facility for export loans and the operation
of the existing Federal Reserve discount
window. As already noted, under the pro
posed facility a bank would have the right
to obtain Federal Reserve credit, at its own
option and at guaranteed maximum rates,
so long as it possessed or could generate
export loan collateral eligible for discount
ing. Such credit could be used in turn to
finance a more or less permanent expansion
of domestic lending.
The purpose of the Federal Reserve dis
count window, on the other hand, is simply
to provide member commercial banks with
temporary liquidity, as needed to adjust
their reserve positions and help meet weekly
average reserve requirements. The window
is not designed to provide credit for the
purpose of inducing an expansion in bank
lending. Consequently, borrowings at the
discount window are limited in maturity to
15 days or less. If any particular member
bank returns to the discount window too
frequently and appears to be becoming “a
continuous borrower,” its management is
brought under surveillance by the regional
Federal Reserve Bank and advised to sell
sufficient assets to repay the Federal Reserve
borrowing. In short, the opportunity to
borrow is a privilege provided only so long
as a bank uses it to acquire temporary
liquidity. If the bank attempts to stretch its
use of Federal Reserve credit to finance asset
holdings on a more permanent basis, the
privilege is withdrawn.
EVALUATION OF TITLE I
The preceding sketch of the way in which the
proposed Title I facility would work raises
serious doubts about the advisability of its
enactment. Because the Title I arrangements
would provide automatic liquidity to the
export loans held by any insured bank, they
could seriously inhibit general monetary
policy at times when the Federal Reserve
was seeking to restrain inflation. At such
times, banks would be likely to unload their
outstanding export loans on the Federal
Reserve as a means of continuing to meet
the heavy credit demands of their domestic
customers.
In addition, banks would very likely con
tinue making new export loans, despite the
conditions of general monetary restraint.
Foreign customers would be attracted by the
bargain rates and U.S. banks could im
mediately unload any new loans made on
the Federal Reserve. Not only would this
provision of Federal Reserve credit be auto
matic, the large banks receiving it would
gain a discount interest rate advantage over
other banks whenever the maximum dis
counting rates on export loans were below
the regular Federal Reserve discount rate
and rates on other short-term sources of
bank funds.
When banks transferred export loans to
the Federal Reserve, high-powered central
bank dollars would be released which could
485
STATEMENTS TO CONGRESS
serve as the basis for a multiple expansion
of bank credit. In such circumstances, if the
System’s anti-inflation policy was not to be
seriously eroded, this release of highpowered dollars would have to be offset
through other System actions.
If the offsetting System actions could be
made without too much lag, the total volume
of bank credit expansion allowed by Federal
Reserve policy would be no larger, but the
share allocated to foreign lending would be.
Thus, the effect of the selective expansion of
export financing would be to reduce the
amount and raise the costs of the credit
supply remaining to finance such domestic
needs as housing and State and local govern
ment programs.
In short, the Title I arrangement would
at times have the inadvertent result of setting
a higher priority on financing of export loans
than on some domestic needs which might
generally be regarded as socially more press
ing. This is one of the difficulties of attempt
ing to introduce a program of selective credit
allocation within a framework of general
monetary control. It also illustrates why the
Board of Governors has consistently opposed
the use of its discount facility for selective
credit allocation purposes.
BUDGETARY STATUS OF EX-IM BANK
Turning now to the question of the appro
priate budgetary status for the ExportImport Bank, the Board continues to recom
mend against proposals that would exclude
the Bank’s receipts and disbursements from
the totals of the Federal budget and exempt
them from any limitations on annual ex
penditures and net lending imposed through
the budget. These proposals would make
possible an expansion of Export-Import
Bank operations by freeing them from
budget restraints imposed on other Federal
programs. Such restraints are designed to
limit the demands of the Government on the
real resources of the economy and to enable
the Congress and the administration to
establish priorities among Federal programs,
so that the maximum benefit is derived from
the total outlays of the Government.
If this exclusion from the budget is to
have any effect, it will be to allow ExportImport Bank outlays to exceed those that it
would make under present restraints. As a
result, total Federal outlays will rise without
being reflected in the budget totals. In addi
tion, exclusion of the Export-Import Bank
from the budget would set a precedent that
undoubtedly would be invoked by other
Government agencies seeking the same
privilege. There are a number of agencies
with this potential interest, and it would be
hard to maintain that the Export-Import
Bank is the only institution that merits such
treatment.
PROMOTION OF EXPORTS
The Board’s reservations about the desir
ability of enacting Title I of H.R. 8181
should not be interpreted as a lack of interest
in promoting U.S. exports. The Federal
Reserve is second to no one in its desire to
see an improvement in the U.S. balance of
payments. Hence we are very much export
minded.
We also fully recognize the importance of
providing adequate financing to assist our
export sales abroad and believe that the
Export-Import Bank plays a positive role in
achieving this goal. For this reason we favor
the amendments in Title III of H.R. 8181
which would increase the loan, guarantee,
and insurance authority of the Ex-Im Bank
— and, among other things, would permit
an expansion of the existing discounting
facility for medium-term export loans. Of
course, our support of these expanded finan
cial activities carries with it the proviso that
486
they will be fully coordinated by the U.S.
Treasury.
Finally, we believe that there is an im
portant part to be played by such new or
ganizations as the Private Export Funding
Corporation. The Board, along with other
Federal agencies, has helped in the estab
lishment of that corporation. And we expect
it to assume important responsibilities in
marshalling financial resources in this coun
try and abroad to support major U.S. ex
ports. As a private venture operating with
official guarantees and insurance paid for
by users of the credits, PEFCO holds prom
ise of providing substantial financial re
sources on competitive terms.
This completes my testimony, Mr. Chair
man. At this point I would like to have
Governor Brimmer testify on the VFCR
program, if that meets with your wishes.
Statem ent by A n drew F. B rim m er , M em
ber , B oard of G overnors of the Federal R e
serve System , before the Subcom m ittee on
International Trade, of the House Banking
and Currency C om m ittee , M ay 19, 1971.
Mr. Chairman, I appreciate the opportunity
to present the Federal Reserve Board’s
views on Title II of H.R. 8181. This title
would prohibit any restraint under the Vol
untary Foreign Credit Restraint (VFC R)
program on export credit granted to for
eigners by U.S. banks or other financial
institutions.
The Board does not believe that this title
of the bill should be enacted.
OVERVIEW OF THE VOLUNTARY
FOREIGN CREDIT RESTRAINT PROGRAM
The Voluntary Foreign Credit Restraint pro
gram— the VFCR, as it is generally known
— is part of an over-all U.S. Government
FEDERAL RESERVE BULLETIN □ JUNE 1971
program to reduce the deficit in the U.S.
balance of payments.
Each element of the over-all balance of
payments program is aimed at restraining
capital outflow from the United States. The
VFCR restrains capital outflow through
banks and other financial institutions; the
Foreign Direct Investment Program does so
through regulating outflow from U.S. corpo
rations to their affiliates overseas; and the
interest equalization tax limits outflow re
sulting from the purchase by Americans of
foreign stocks, bonds, and other equity and
debt securities.
Any appraisal of the VFCR should be
made in the context of the over-all pro
gram of which it is a part and in the light
of the reliance which the Government con
tinues to place on the other programs to
which the VFCR is intimately related.
In formulating and administering the
VFCR program, all elements of our balance
of payments have been kept in mind. In
particular, careful attention has been given
to the relationship between measures on
capital transactions and our policy of aiding
in the growth of our exports.
The VFCR program constitutes a request
by the Federal Reserve System that all finan
cial institutions exercise restraint in lending
of all types to foreigners and in making any
other investments abroad. The request is
embodied in a set of guidelines. All U.S.
banks and other U.S. nonbank financial
institutions have been invited to volunteer
their cooperation in observing specific ceil
ings and principles; all U.S. agencies and
branches of foreign banks have been asked
to act in accordance with the spirit of the
guidelines.
Mr. Chairman, given the Board’s assign
ment in the over-all U.S. Government
balance of payments effort, I would like to
note at the outset the unusual nature of
the approach taken in Title II of H.R. 8181.
STATEMENTS TO CONGRESS
It is a proposal for statutory action to change
a program which calls for a voluntary re
sponse by U.S. private institutions. As I will
indicate below, the Board has always been
ready to change the VFCR when the evi
dence demonstrated that a change was
needed to enhance the program’s contribu
tion to our balance of payments objectives.
The Board will continue to review the
VFCR guidelines, and it will readily revise
the program as the need arises.
Mr. Chairman, at this point, I will turn
to the proposal. In doing so, I would like,
first, to describe briefly how export credits
are now treated under the VFCR guide
lines. I will confine my remarks almost
entirely to the guidelines as they apply to
banks— principally because the issue of ex
port credits and the Title II directive would
have greater relevance to banks than to the
nonbank financial institutions.
TREATMENT OF EXPORT CREDIT
UNDER VFCR GUIDELINES
A ll banks have two sets of ceilings within
which they are to keep their outstanding
loans to foreigners and their investments
abroad: a General Ceiling and an Export
Term-Loan Ceiling. The General Ceiling
applies to all categories of foreign assets—
by which is meant all types of loans or other
credits extended to foreigners and all types
of other foreign investments. The Export
Term-Loan Ceiling applies to loans to for
eigners with an original maturity of over
1 year and which finance the export of U.S.
goods or the performance of U.S. services
abroad. Within these two ceilings, there are
a few subceilings and other supplementary
restraints. For example, one of those supple
mental restraints, in effect, asks banks not
to channel their own funds into short-term
assets abroad merely to obtain a financial
return.
487
From the earliest days of the VFCR pro
gram, the guidelines have requested that,
within their ceilings, institutions give prior
ity to credits that finance U.S. exports. You
will find that request stated specifically in
the opening sentence of the guideline text.
Also from the inception of the program,
bank credits in which the Export-Import
Bank is involved were exempted from the
guideline ceilings. As the exemption is ex
pressed in the present guidelines, credits
which are extended by banks or by nonbank
financial institutions and which are guar
anteed or participated in by the Eximbank,
or insured by Eximbank’s affiliated Foreign
Credit Insurance Association, or guar
anteed by the Department of Defense are
not subject to guideline restraint. The ex
emption was created in the knowledge that
the export financing activities of the Exim
bank and the Department of Defense would
be reviewed in the National Advisory Coun
cil on International Monetary and Financial
Policy in which the Federal Reserve is repre
sented.
Export credits have also been exempted
from several special restraints in the guide
lines. In particular, banks are not to make
any new loans of a maturity of over 1 year
to residents of the developed countries of
continental Western Europe, except for
loans which finance U.S. exports. Similarly,
banks are to hold their short-term credits to
such residents to 75 per cent of the end-of1967 level, except for credits which finance
exports.
When the guidelines have been revised to
increase ceilings or to establish procedures
so that banks without ceilings might adopt
them— and thereby be able to engage in
foreign lending— special effort has been
made to earmark the new lending latitude
for export financing. This has occurred
many times.
In the first revision of guidelines at the
488
end of 1965, a change in the ceiling formula
gave some banks an increment in lending
leeway. They were asked to use that latitude
exclusively for export credits and credits
for less developed countries.
In the spring of 1969, banks were of
fered two alternative methods for calculat
ing their ceilings. The formula was framed
with the intent, and had the effect, of sig
nificantly increasing the ceilings of small
and medium-sized banks. The increase in
the aggregate amounted to almost $0.5 bil
lion. This was significant in relation to total
ceilings of all banks— which amounted to
about $9 billion. It was even more sig
nificant for the banks which benefited most
directly, since they accounted for only a
minor fraction of the $9 billion of existing
ceilings. One of the most important reasons
for the increase and for its allocation to
the smaller banks was that it would improve
their opportunity to finance exports.
In December 1969, each bank was given
a second ceiling to be used exclusively for
loans of over-1-year maturity that financed
exports. Since that date, every bank has had
a General Ceiling and an Export Term-Loan
Ceiling. The creation of the second ceiling
added about $ 1 '4 billion in lending lati
tude, all for exports, to the approximately
$10 billion of aggregate ceilings then in
existence.
In drawing up provisions to guide banks
which have had no ceilings but which have
proposed to adopt them— and to guide the
Federal Reserve Banks which consult with
them to arrive at specific ceilings— the po
tential concentration on export financing
has had top attention. The guidelines today
permit new entrants into the foreign lending
field to adopt ceilings up to a certain limit,
but those ceilings— the General and Export
Term-Loan Ceiling taken together— are to
be employed “predominantly” for export
financing.
FEDERAL RESERVE BULLETIN □ JUNE 1971
Finally, a general exception in the guide
lines has significance for export financing.
That is the exemption of Canada from the
program. Since early 1968, bank loans and
all other types of credit extended to resi
dents of Canada have been exempted from
the guidelines. This exemption was adopted
for the VFCR and for the other U.S. Gov
ernment balance of payments programs,
notably the Foreign Direct Investment Pro
gram, in light of the special relationship
between the two economies and in light of
safeguards the Canadians imposed to pre
vent Canada from becoming a “pass
through” for U.S. capital into other parts of
the world. This geographic exemption serves
as an important exemption for export financ
ing, since Canada is the most important
single foreign national market for U.S. ex
ports.
IMPACT OF THE VFCR PROGRAM
ON EXPORT FINANCING
In keeping the administration of the pro
gram under constant review, the Board has
watched closely for any evidence that the
savings in capital outflow might be offset
by a loss of exports or even by a shortfall
in the increase in exports for which we are
striving.
Last year, as we were moving toward
the time when decisions would once again
be made about the possible extension and
revision of the several capital restraint pro
grams, the Board undertook a separate in
quiry into the possible effect in 1970 of the
VFCR on export financing and on exports.
That inquiry went to the heart of the ques
tion represented by this bill. The results gave
us information valuable for the decisions
the Board was to take— and that Congress,
by virtue of H.R. 8181, is asked now to
take.
With the cooperation of the Department
of Commerce, the Board drew up questions
STATEMENTS TO CONGRESS
489
to be asked of banks and of U.S. exporters
about efforts made in 1970 to obtain credit
for foreign buyers of U.S. goods. The full re
port, including the content of the questions
asked, was released by the Board on Janu
ary 7, when the revised guidelines were
issued. I will present the highlights and sub
mit a copy for the hearings record.
The key questions asked of banks which
accounted for over nine-tenths of loans
subject to the guidelines were: (1 ) had they
turned down loans requested on behalf of
foreign buyers of U.S. exports because of
the guidelines and (2 ) if so, what then
happened to the contemplated sale. An
effort was then made to question the ex
porters involved. As a further check, in
quiries were made of a sample of 100 ex
porters across the country to ascertain their
experience in getting U.S. bank financing
for foreign customers in the light of the
VFCR.
The results of the inquiry were striking.
It was reported that the VFCR had resulted
in the denial of export credit in only a
handful of cases. Moreover, the VFCR had
virtually no adverse effects on U.S. exports
themselves. About a dozen exporters were
purportedly denied credit initially because
of the VFCR. However, in almost all cases,
they found other sources of financing to
complete their sales. (See Table 1.)
As a byproduct of the inquiry on pos
sible effects of the VFCR on exports, our
staff undertook another inquiry to ascertain
the portion of total loans under VFCR ceil
ings that financed exports.
The results of this staff study, released
March 3, 1971, and which also I submit for
the committee’s record, showed how banks
have employed their lending leeway with
respect to exports.
Of loans under VFCR ceilings late last
year, 17 per cent were documented export
credits. (See Table 2 .) Of loans subject to
ceilings plus loans exempted from ceilings
because they were Eximbank-related or D e
partment of Defense-related, 22 per cent
were to finance exports. The staff paper
noted many statistical and analytical qualifi
TABLE 1
SU M M A RY O F B A N K S’ AND E X PO R T E R S ’ R E S P O N S E S TO INQUIRY ON T H E E FFE C T S O F T H E VFCR
PROG RA M O N EX PO RT FIN A N CIN G AND ON E X PO R TS
Federal
Reserve
district
Number of
banks
Re
spond
ing
Rejecting
loan
because
of VFCR
Number of
exporters
Loans rejected
Possible
net loss
Export
of sales
sales
Acknowl completed (thous. of
dollars)
edging
rejection
2M —40 Number of
exporters 1
Re
Report
spond
ing
ing
rejections
Num
ber
Value
(thous. of
dollars)
Identi
fied
200
0
0
0
Unknown
900
1
0
0
0
0
2
1
0
0
0
0
0
Yes
n.a.
n.a.
n.a.
Unknown
Yes
0
0
0
0
Unknown
0
11
73
4
4
1
n.a.
n.a.
n.a.
Yes
Unknown
0
0
0
0
300
12
6
9
9
1
0
300
129
8
1
2
3
4
5
6
12
10
8
10
7
6
0
0
0
1
1
1
1
0
0
0
1
3
7
8,9
10
11
12
20
5
4
13
14
0
0
o
2
2
0
0
o
4
22
0
0
0
1,450
300
0
0
0
2
0
0
0
0
0
0
Total
3 109
7
11
2,850
5
1
1
4
1
0
Net loss
of export
Export
sales
sales
completed (thous. of
dollars)
Yes
Not all
No
n.a.
0
18,000
1,200
n.a.
0
n.a.
n.a.
0
1
n.a.
Unknown
n.a.
No
n.a.
2,000
n.a.
21,200
n.a. Not applicable.
___No response or no figure to be expected.
1 Exporters not identified initially by banks but drawn from separate sample.
2 One bank said it rejected many loans, but that it kept no records. This case is listed here as one rejection.
3 These 109 responses came from 113 commercial banks surveyed. The nonresponding banks all had very few outstanding foreign credits subject
to the VFCR.
FEDERAL RESERVE BULLETIN □ JUNE 1971
490
TABLE 2
EX PO R T C R ED IT U N D E R VFCR C E ILIN G S A N D U N D E R EX PO R T-IM PO R T
BANK, FOREIG N C R E D IT IN SU R A N C E A SSO C IA T IO N , AND D E PA R TM EN T
OF D E FE N S E VFCR EX EM PT IO N S
In millions of dollars
Credit subject to
VFCR
Group
Amount
out
standing
(1)
Export
credit
(2)
Exempt
credits of
EX-IM,
FCIA,
Dept, of
Defense
(3)
Col. (2)
+
Col. (3)
Col. (2)
as per
centage
of Col. (1)
Col. (4)
as per
centage
of Cols.
(D+(3)
(4)
(5)
(6)
All VFCR banks (167)..........
8,841
All banks in inquiry (72):
17 largest banks1...............
All others (55)...................
8,208
7,235
973
1,374
1,161
213
628
543
85
2,002
1,704
298
17
16
22
23
22
28
By Federal Reserve district:
Boston................................
New Y ork..........................
Philadelphia.......................
156
4,970
203
22
926
33
14
397
11
35
1,323
44
14
19
16
21
25
21
Cleveland...........................
Richmond..........................
A tlanta...............................
179
65
30
12
30
2
21
1
12
33
31
14
7
46
7
17
47
33
Chicago..............................
St. Louis, Minneapolis,
and Kansas City............
Dallas.................................
San Francisco....................
822
105
84
189
13
21
46
41
1,696
12
19
213
7
2
79
19
21
292
26
46
13
36
49
17
1 Over $100 million in foreign assets.
N o t e .—Sept.
30, 1970, data, except that Aug. 31 data for
cations, and I stress here that the figures
do not purport to be comprehensive or pre
cise. But they are based on banks’ records
and evaluations. They suggest strongly that
banks do have the capacity— within the
ceilings— to finance exports.
We have also looked at the record of
utilization of Export Term-Loan Ceilings as
an indicator of the program’s possible effect,
if not on exports, on export financing. You
will recall that these ceilings were created
at the end of 1969 in the aggregate amount
of $114 billion to provide new leeway for
export credits of over-1-year maturity— re
ferred to as term loans. We realize that, in
the financing of exports, short-term credits
are of greater magnitude than term loans.
However, we decided to provide additional
lending leeway for term loans to meet the
contention that credits of over 1 year were
crucial if U.S. exporters were to match the
financing terms being offered by exporters
in foreign countries.
N ew
York is projected to Sept. 30.
As of the end of March, 15 months after
the Export Term-Loan Ceiling had been
made available, banks had used only 17 per
cent of it. Even this figure is an inflated
indicator of its utilization. If we look also
at the figures showing repayments of term
loans for exports that banks had granted
before the new ceiling became available and
compare them with the figures showing new
credits of this type placed on their books
since that time, we find that outstanding
export term loans subject to VFCR ceilings
have grown by only $67 million. Aggregat
ing almost $ l J/2 billion today, the Export
Term-Loan Ceiling constitutes virtually an
unused exemption.
REASONS FOR NOT EXEMPTING
EXPORT CREDITS FROM VFCR
If the VFCR has had little adverse effect on
exports and if the restraints have not been
substantially holding back export credits,
STATEMENTS TO CONGRESS
why should there be Federal Reserve opposi
tion to the exemption proposed by Title II?
A complete exemption of export credits
from the capital restraint effort would
weaken— not improve— the over-all U.S.
balance of payments program.
First, exemption would lead to an in
crease, possibly to a large increase, in credit
but not to an equivalent increase in exports.
Second, exemption would undermine the
effectiveness of the whole set of U.S. capital
controls. For example, if export credit were
removed from restraint, attention would
have to be given to tightening up on other
forms of credit to foreigners and other forms
of investments overseas. It is highly ques
tionable that we could successfully intensify
restraints in various credit areas to com
pensate for the loss of restraint on export
credits.
Finally, there is as much need today—
perhaps even more need than ever— to re
strain the outflow of funds from the United
States. Particularly in the face of our con
tinuing large balance of payments deficit
and of the large short-run capital outflows,
we should take the greatest care to avoid
weakening the stand we have taken, in the
common interest, to moderate the flow of
U.S. capital into foreign markets. Any
relaxation of our capital controls could jeo
pardize the international monetary coopera
tion which we have been helping to build.
There is today no shortage of capital to
finance foreign purchase of U.S. goods. The
Board at no point has denied that the
restraints may limit the opportunities of
an individual bank to provide export financ
ing. But the fact remains that in the banking
system of this country as a whole, including
the network of foreign branches of U.S.
banks that are outside the guidelines, and
in the financing systems available in other
countries— particularly in those which have
strong balance of payments surpluses— there
491
is adequate credit to ensure the growth of
U.S. exports.
For these reasons, Mr. Chairman, the
Board does not believe that Title II of H.R.
8181 should be adopted.
Statem ent by A rth u r F. Burns, Chairman,
B oard of G overnors of the F ederal R eserve
System , before the C om m ittee on Banking,
Housing and Urban Affairs, U.S. Senate,
June 16, 1971.
I appreciate your invitation to present the
views of the Board of Governors on legisla
tion to authorize Government guarantees of
loans to business in emergencies.
The need for prudent provisions to deal
with credit needs in emergency conditions
has been newly underscored by develop
ments over the past year or so. Last spring,
within a few months after I assumed my
present duties, financial markets suffered an
erosion of confidence severe enough to cause
widespread concern that the country might
face a liquidity crisis— a situation in which
even creditworthy firms might be unable to
borrow the funds they needed to carry on
their business.
The sharpest contraction of credit came
in the commercial paper market, following
the insolvency of the Penn Central Trans
portation Company, a prominent borrower
in that market. Since commercial paper is
wholly unsecured, investors backed away
from issuers about which there was any ques
tion. Concern spread throughout the credit
markets, fed by fears that some borrowers
might be unable to obtain sufficient credit
from alternative sources to refinance matur
ing commercial paper and thus be forced
into bankruptcy. With investors generally
becoming more cautious, companies with
credit ratings less than Aaa experienced
increased difficulty in borrowing through
492
the bond market, as was evidenced by the
sharp widening of spreads in the structure
of corporate bond yields. In short, there
appeared to be a risk of bankruptcies spread
ing to firms that in other circumstances
would be regarded as perfectly sound.
Confronted with an incipient crisis, the
Federal Reserve System acted promptly to
assure the availability of loanable funds to
meet the credit needs of firms that were
being squeezed by the contraction of the
commercial paper market. First, the System
made it clear to member banks that the dis
count window would be available to assist
them in meeting such needs. Second, the
Board suspended ceilings on the rates of
interest member banks could pay on certifi
cates of deposit of $100,000 or more. In
this way banks were placed in a much better
position to attract funds to lend to their
hard-pressed customers.
These two actions helped to restore con
fidence, and fear of a liquidity crisis abated.
We can all take comfort from the fact that
the money and credit markets met the tests
of mid-1970 successfully. Looking ahead,
however, we need better assurance that
temporary liquidity problems of major cor
porations will not be allowed to damage the
national economy.
Traditionally, this country has relied on
private financial markets to determine
whether credit should be granted or denied.
I firmly believe that this is a sound principle,
and I am concerned, as I know you are,
about how we can preserve this principle
and at the same time provide standby au
thority under which the Government might
backstop the private financial markets in
emergencies. In authorizing Federal credit
assistance, the Congress has understandably
concentrated largely on helping homebuyers,
small businesses, farmers, and others who
will, in ordinary circumstances, need such
assistance far more ^than big businesses do.
FEDERAL RESERVE BULLETIN □ JUNE 1971
In extraordinary circumstances, however,
even a large, well-established, and credit
worthy enterprise may experience difficulty
in obtaining needed credit, and failure to
provide that credit could be extremely costly
to the general public— in terms of jobs de
stroyed, income lost, financial markets dis
rupted, or even essential goods not produced.
We should be able to find a way to deal with
this problem without injuring the free enter
prise system.
In testifying today, it is certainly no part
of my purpose to suggest that Congress delay
its decision about Lockheed. My aim is
rather to recommend that your committee,
with Lockheed fresh in mind, address itself
to the question of devising more general
standards and procedures to govern credit
guarantees in possible future emergencies.
The Board believes there are several guid
ing principles that should be followed in
designing such assistance. First, assistance
should be offered only to protect the econ
omy against serious injury. I have mentioned
the mid-1970 experience as just one example
of conditions under which such a need could
arise. Whatever the particuar circumstances,
assistance should be reserved for those rare
instances where it is needed to enable a
sound enterprise to continue to furnish goods
or services to the public, and where failure
to meet that need could have serious conse
quences for the Nation’s output, employ
ment, and finances.
Second, since the assistance is designed
to protect the public interest, it follows that
it should not be used simply to protect large
firms from failure, or to bail out bad man
agement, or to shield creditors or share
holders from the consequences of unwise
investments. Guarantees should be a last
resort, issued ony when there is reasonable
assurance of repayment of the guaranteed
loan and when there is no other way to avoid
serious injury to the economy. Since any
such guarantee would be subject to condi
STATEMENTS TO CONGRESS
tions assuring a preferential status for the
Government relative to other creditors or
shareholders in the event of insolvency, and
since guarantees would be available only in
emergencies, the existence of the authority
should not in any real sense erode the dis
ciplines of the private enterprise system.
Rather, it should be regarded as a kind of
insurance policy to protect the general public
against a highly specialized risk.
Third, assistance should be provided
through Federal guarantees of private loans
rather than through outright advances of
public funds. Aside from its obvious budget
savings, this approach would have the ad
vantage of assuring that experienced private
lending officers will administer the loans in
accordance with Federal guidelines and
supervision.
Fourth, to assure thorough and wellbalanced consideration of the need for assist
ance, responsibility for passing on guarantees
should be vested in top Federal officials con
cerned with over-all economic and financial
policy. We suggest that this function be
vested in a board chaired by the Secretary
of the Treasury, with the Secretary of Com
merce and the Chairman of the Board
of Governors as members. No permanent
staff would be required, since guarantees
would be issued only under exceptional
circumstances, and staff could be assigned
as needed from the governmental units
represented on the board. Thus no bureauc
racy would be created with an interest in
expanding the “program.” There would be
no “program”— only standby authority,
ready for use in the event of need.
Fifth, Congress should be informed in
advance of any proposed guarantee, so that
it will have an opportunity to review the
proposal to the fullest extent consistent with
the need for prompt action. A possible
model for such a procedure may be found
in the Defense Production Act as amended
last year. As you will recall, that Act now
493
prohibits guarantees of V-loans in amounts
over $20 million without approval of Con
gress. It also precludes the use of guarantees
of loans under that amount to prevent in
solvency except under certain conditions,
including a certification by the President,
transmitted to the Congress at least 10 days
in advance. While a $20 million limit would
be impractical for purposes of emergency
assistance, the certification procedure seems
well suited for this purpose. Following that
model, a guarantee would be authorized only
if the President certifies that it is needed to
avoid serious and adverse effects on the
economy and a copy of that certification,
with a detailed justification, is sent to the
Congress and the two banking committees
at least 10 days in advance.
These principles are embodied in a bill,
S. 2016, submitted by the Board and intro
duced by your Chairman and Senator
Tower. Guarantees outstanding under
S. 2016 would be limited to a total of $2
billion. In addition to the conditions I have
already mentioned, guarantees could be
issued only if the borrower furnished assur
ances that the loan is not otherwise available
on reasonable terms and conditions, if the
lender certified that he would not make the
loan without the guarantee, and if the loan
could not be guaranteed under the Defense
Production Act. The bill also provides that
fees shall be charged for guarantees and
deposited in a fund from which payments
required as a consequence of any guarantee
are to be made. In the event that amounts
in the fund proved insufficient to make such
payments, the Secretary of the Treasury
would be authorized to obtain the needed
funds through public debt transactions.
Since the Federal Reserve System acts as
a lender of last resort to financial institutions,
principally its member banks, we are some
times asked whether we could or should per
form the same role for nonfinancial enter
494
prises. This question merits at least a brief
comment.
The Federal Reserve Act now includes a
provision (paragraph 3 of Section 13) that
empowers the Board of Governors, in “un
usual and exigent circumstances” and by an
affirmative vote of at least five members of
the Board, to authorize the Federal Reserve
Banks to make certain types of direct loans
to individuals, partnerships, or corporations.
The purpose of this provision of law,
which was enacted in 1932, was to permit
Federal Reserve Banks to make short-term
loans to enterprises that are creditworthy
but are unable to secure adequate credit
accommodations because of unfavorable
conditions within the financial system. The
only loans made under this provision were
granted between 1932 and 1936, totaling
123 in number and about $1.5 million in
amount.
Paper discounted by Federal Reserve
Banks under that paragraph must be of the
“kinds and maturities made eligible for dis
count for member banks under other pro
visions” of the Federal Reserve Act. This
means, among other things, that the paper
may not have a maturity of more than 90
days at the time of discount. The paragraph
further provides that the paper shall be
“indorsed or otherwise secured to the satis
faction of the Federal Reserve Bank,” which
the Board has construed to mean that a
Reserve Bank should ascertain to its satis
faction that the indorsement or the security
offered is adequate to protect the Reserve
Bank against loss.
In light of these restrictions in the law
and the background as to the intent of the
law, the Board concluded last year that it
would not be appropriate to invoke this
authority to authorize extension of Federal
Reserve credit to Penn Central. Speaking
more broadly, since legislation is needed in
any event to assure that adequate authority
is available to cope with possible future
FEDERAL RESERVE BULLETIN □ JUNE 1971
emergencies, the Board believes that guaran
tee authority such as provided in S. 2016
would be preferable to direct provision of
Federal Reserve credit. We make this rec
ommendation not only because we believe
assistance should take the form of a guaran
tee rather than direct lending, but also
because we believe that the Congress, the
President, and key administration officials
should participate in any decision to extend
such assistance.
These are the considerations that lead the
Board to recommend enactment of S. 2016.
Whatever your decision may be as to the
need for immediate action in the case of
Lockheed, the Board hopes that you will
give the most serious consideration to a
longer-range solution such as S. 2016. Ex
perience has convinced the Board that
legislation of this type is needed as a pro
tective umbrella for our sensitive economic
society.
Statem ent by A ndrew F. Brim m er, M em ber,
B oard of G overnors of the Federal R eserve
System , before the Subcom m ittee on Inter
national Exchange and Paym ents, of the
Joint E conom ic C om m ittee, June 16, 1971.
Mr. Chairman and members of the subcom
mittee, I appreciate this opportunity to re
spond, on behalf of the Federal Reserve
Board, to the invitation to report on the
Voluntary Foreign Credit Restraint pro
gram. It has been almost 2 Vi years since I
last appeared before this subcommittee to
perform the same assignment.
The subcommittee asked that I review the
positive and negative impacts of the Volun
tary Foreign Credit Restraint program— or
the VFCR as it is generally known— on the
U.S. balance of payments and to discuss
the need to maintain this program in the
light of prospective balance of payments
STATEMENTS TO CONGRESS
developments. It also asked for whatever
information the Board might have on the
activities of U.S. commercial banks in mov
ing large amounts of short-term funds inter
nationally in late April and early May of this
year. In general, the subcommittee wanted
to know what role U.S. commercial banks
played in the capital flows that apparently
led German authorities to allow the exchange
rate of the Deutsche mark to float. I will
deal with these two topics in that order.
THE VOLUNTARY FOREIGN CREDIT
RESTRAINT PROGRAM
The Voluntary Foreign Credit Restraint
program is essentially a request that U.S.
financial institutions restrain their capital
outflow by limiting loans to foreigners and
the acquisition of investments abroad. The
VFCR is part of a Government-wide effort
to strengthen the U.S. balance of payments,
and it has been in effect since March 1965.
The central feature of the program is a set of
guidelines issued to U.S. banks and nonbank
financial institutions by the Board of Gov
ernors. At the beginning of 1968, the Board
received by Executive Order authority to
make the program mandatory. However, the
banks and other financial institutions have
generally responded well to the Board’s re
quest for their cooperation, and the Board
has chosen to keep the program on a volun
tary basis.
The program is one of the three sets of
restraints on U.S. capital outflow. The other
two are: the Interest Equalization Tax
(IET, applying to purchases by Americans
of foreign stock, bonds, and other equity and
debt securities); and the Foreign Direct
Investment Program (regulating funds sup
plied by U.S. corporations to their overseas
affiliates). I will not discuss the latter two
programs. But I must stress that the VFCR
is interrelated with both of these programs,
and any assessment of the effects of the
495
VFCR must take into account these relation
ships.
Each bank and each nonbank financial in
stitution is asked to keep its loan to for
eigners and its other investments abroad
within limits. Each institution, in making
loans and investments under these ceilings,
is to give priority to credits that finance
U.S. exports and that meet the financing
needs of developing countries.
In addition to observing the over-all ceil
ings, the institutions are asked to observe
additional restraints on capital outflow to
the developed countries of continental
Western Europe and lesser restraints on
outflows to developing countries. Exemp
tions are provided for outflow to Canada and
for export credit related to Eximbank fi
nancing.
Changes have been made in the program
from time to time, but its principal features
are today the same as when it was established
in early 1965.1
EFFECT OF THE VFCR PROGRAM ON THE
U.S. BALANCE OF PAYMENTS
There is a substantial body of statistical and
other information on which we can draw to
ascertain the possible positive and negative
impacts of the VFCR on the balance of pay
ments. However, it must be understood that
it is impossible to do an exacting assessment
because of data deficiencies and analytical
problems.
With these limitations in mind, we can
focus initially on trends in assets subject to
restraint. On December 31, 1964, the base
date for calculating the guideline ceilings,
total foreign assets held by banks were al
most the same as they were on the most
recent reporting date: $9,495 million at
the end of 1964 for 154 banks, compared
to $9,536 million on April 30, 1971, for
169 banks (Table 1, p. 5 0 0 ). As year-end
1 For the subcommittee’s information, a fuller description of
the program was submitted in an appendix.
496
data show, foreign assets subject to VFCR
ceilings have fluctuated within a narrow
range throughout the period of the program.
The rather stable level of assets subject
to the restraints contrasts markedly with the
rapid increase in bank-reported holdings of
foreign assets in the years immediately pre
ceding the program. In the period 1961-63,
U.S. bank claims on foreigners rose from
$6.9 billion to $9.0 billion, a gain of about
$ 1 billion each year. This was a period dur
ing which interest rates were comparatively
low in the United States. In 1964 the level
jumped by another $2.4 billion, partly re
flecting the fact that the IET had just been
imposed but did not yet cover bank lending.
Once the VFCR was instituted in the early
part of 1965, the rapid rise ceased, and—
apart from short-run fluctuations— has not
resumed.
The observed trends should not obscure
the varying influence of a restrictive U.S.
monetary policy on U.S. bank foreign lend
ing. For example, in 1966, aggregate VFCR
ceilings were raised, but monetary policy
became restrictive. Bank foreign assets de
clined, and banks at the end of the year had
large VFCR lending leeway. In 1967 mon
etary policy eased, and banks increased their
foreign assets. During 1968 the impact of
monetary policy varied greatly. However, at
the beginning of 1968, there was a tightening
of the VFCR and the Department of Com
merce Foreign Direct Investment Program.
By the end of the year, banks had reduced
their foreign assets more than requested un
der the VFCR. The reduction was probably
attributable both to the restraint program
and to monetary policy changes. In 1969
and 1970 there were increases in foreign
assets subject to restraint. The VFCR ceil
ings were increased twice during 1969, but
a continued restrictive monetary policy and
high domestic demand for money in 1969
held down the outflow of bank funds. As
monetary policy eased in 1970, there was a
FEDERAL RESERVE BULLETIN □ JUNE 1971
large change in the banking sector of the
U.S. capital account and banks repaid a
large part of their borrowings, but they did
not increase their claims on foreigners.
FURTHER IMPACT OF THE VFCR ON
CAPITAL FLOWS
One can also get an indirect indication of
the possible effect of the VFCR by tracing
the behavior of the banks’ foreign lending
compared to their total lending. Claims on
foreigners by U.S. banks would have been
about $16.6 billion at the end of 1970—
instead of $13.8 billion— if they had grown
at the same rate as total domestic loans and
investments of reserve city member banks.
Moreover, the projected end-of-1970 level
probably would have been even higher if
we take account of the relatively greater
emphasis of U.S. banks on foreign markets.
That emphasis has been reflected in part
in the rapid establishment of U.S. bank
branches and subsidiaries overseas.
The VFCR program has been especially
helpful in restraining bank lending to resi
dents of the developed countries of conti
nental Western Europe. Special VFCR
restraints apply to these countries: Non
export term loans are not to be made at all,
and short-term nonexport credits are to be
kept to within 75 per cent of their end-of1967 level. Nonexport term loans outstand
ing to these Western European countries
when the subsidiary restraint was intro
duced in late 1967 have by now been repaid,
and no new ones have been granted over the
past 3 Vi years. Short-term, nonexport
credits to these countries have been sharply
restrained by the subceiling at a level of
about one-half billion dollars.
THE VFCR PROGRAM AND EXPORT
FINANCING
As members of this subcommittee know,
there has been considerable discussion of
the treatment of export credits under the
STATEMENTS TO CONGRESS
VFCR bank program. Consequently, it
might be helpful to focus on the issue at
this point. First, the provisions on export
credits are of a lesser degree of restraint; in
fact, there are virtual exemptions in some
cases. Second, the possible impact of the
program on exports, as well as on export
financing, is an essential element of the
evaluation of the balance of payments effects
of the program.
In the fall of last year, the Board, with
the assistance of the Department of Com
merce and the Federal Reserve Banks, con
ducted a survey of commercial banks and of
exporters to determine the possible effects
in 1970 of the VFCR on exports and export
financing. The survey obtained replies from
banks accounting for over nine-tenths of
bank foreign lending. The replies were
checked in every possible case against the
reports of exporters identified by the banks,
and another sampling was taken of exporters
across the country. The survey indicated that
there was no significant loss of exports as
the result of the VFCR. In virtually every
instance, U.S. exporters were able to obtain
adequate financing for their shipments— if
not through financing from one U.S. bank,
then from another, or from sources abroad.
I submit a copy of the report of the survey
for the subcommittee’s record.
Earlier, I noted that all banks, as well
as all nonbank financial institutions, were
asked, in using their ceilings, to give priority
to credits that would finance U.S. exports.
This priority was established to ensure credit
where it is essential to make export sales.
Inquiries were made late last year of banks
reporting under the VFCR program, and
the Board’s staff produced a study which
shows how this request for priority treatment
has been carried out. The study, the staff
noted, is necessarily qualified, since there
are limitations on the ability to separate
export credit to foreigners from other credit
497
to foreigners and since there are other data
problems.
However, it appeared that 16 per cent of
banks’ holdings of foreign loans subject to
the VFCR ceilings are made up of export
credits. The export credit figure is 22 per
cent if we take both export credits subject
to the VFCR ceilings and export credits
that are exempt from the ceilings by reason
of falling within the exemption that applies
to Eximbank-related and Department of
Defense-related commercial bank credit.
The positions of individual banks vary
greatly from these averages. In some cases,
banks have no export credits among their
loans to foreigners; in other cases, the over
whelming majority of their foreign assets
are made up of export credits.
For the subcommittee’s information, I
submit also a copy of the staff study to which
I have referred.
With regard to export credits exempted
because they are Eximbank-related, a cate
gory which I have mentioned, there has been
a notable growth, particularly over the last
year or so.
From its earliest days, the program has
exempted commercial bank loans to for
eigners that have been paralleled by direct
credits of the Eximbank, or that have been
guaranteed by Eximbank, or that have been
insured by Eximbank’s affiliate— the Foreign
Credit Insurance Association (F C IA ).
Largely as a result of recent growth in Exim
bank activities, commercial bank export
credits exempted from the VFCR ceilings
have almost doubled since the end of 1969
and now amount to $870 million.
Since early 1968, when Canada was ex
empted from all U.S. balance of payments
programs, there has been a modest increase
in the outflow of U.S. bank credit to Canada.
One factor tending to limit growth is the
relatively low level, at present, of borrowing
costs in Canada compared with those in this
country. Another is the action taken by
498
Canadian authorities to prevent Americans
from funneling money through Canada to
other foreign areas.
The VFCR program has stimulated— and
some might say “caused”— an important
expansion of U.S. banking activity abroad,
including the creation and expansion of
branches and subsidiaries of U.S. banks. A
foreign branch, without adverse impact on
the U.S. balance of payments and therefore
without restraint from the guidelines, can
lend abroad with funds obtained abroad.
Consequently, many banks have established
or expanded their facilities overseas. This
expansion has been concentrated in the
principal financial centers such as London,
but it has also occurred in some nontraditional centers— such as Nassau— as well.
It is hard to estimate the full effect, either
short-run or long-run, of this development
of the U.S. banking system. However, it is
clear that the ability of banks to meet the
needs of their customers for financial assist
ance abroad— without restraint from the
guidelines— has been substantially ensured.
THE VFCR NONBANK PROGRAM
I will not endeavor in this statement to dis
cuss the implication for our balance of pay
ments of the nonbank portion of the VFCR
program, since the bulk of the foreign assets
held by nonbank financial institutions, being
Canadian and international institution se
curities, are exempt from the restraints.
However, I am submitting information on
the nonbank portion of the program in the
appendix to my statement.
THE PROGRAM’S CONTRIBUTION TO THE
BALANCE OF PAYMENTS
From a review of our experience since early
1965, when the VFCR program was estab
lished, we can see that the restraints have
been most effective when monetary condi
tions in the United States have eased. Under
FEDERAL RESERVE BULLETIN □ JUNE 1971
standably, following any easing relative to
conditions abroad, U.S. financial institutions
reassert their interest in placing funds
abroad and, conversely, prospective foreign
borrowers are attracted by declines of U.S.
interest rates and an easing of other credit
terms and conditions.
The program has kept an over-all limit
on capital outflow through these institutions,
with leeway expanding and contracting as
monetary conditions here and abroad have
changed. U.S. credit has been restrained
most with regard to foreign countries which
are best able to rely on non-U.S. financial
resources, principally the developed coun
tries of continental Western Europe. Insti
tutions have been asked throughout the
period to give priority to export credit, and
export sales have not been lost because of
the partial inclusion of export credit in the
program.
Banks have made adjustments compatible
with the restraint program so that they can
continue to service their customers abroad,
particularly the foreign affiliates of Ameri
can corporations. These adjustments have
taken the form largely of new, or expanded,
foreign bank branches and the use by those
branches of Euro-dollars.
POSSIBLE OFFSETTING “LEAKAGES”
An evaluation of the effectiveness of the
VFCR on checking capital outflow must
take account, not only of the direct restrain
ing force, but of any negative indirect ef
fects. A gain reflected in one balance of
payments account might be offset— par
tially, wholly, or even more than wholly—
by a cost reflected in another balance of
payments account. In our judgment, there
have been no substantial offsetting losses—
or “leakages,” as they are sometimes known.
The area we have looked at most care
fully has been that of exports. As I have
already said, we have carried out extensive
499
STATEMENTS TO CONGRESS
investigations to see whether, and, if so, to
what extent, there was evidence to sub
stantiate the apprehension and allegation
that the restraint on export credit has led to
a loss of exports. We found abundant evi
dence to the contrary. Responses from banks
and exporters showed that the VFCR has
not caused any significant loss of U.S. ex
ports.
Examination of this and other areas in
our international accounts which might re
flect offsets to the direct contributions of the
VFCR to the balance of payments indicates
that these offsets have not been of significant
size compared to the balance of payments
savings.
ROLE OF U.S. COMMERCIAL BANKS IN RE
CENT SHORT-TERM CAPITAL FLOWS
I would now like to turn to the subcom
mittee’s question regarding the role of U.S.
banks in the international movements of
short-term funds during the latter part of
April and the first week of May. We have
two sets of information on which we can
draw: the first source is reports received
from banks covered by the VFCR, and the
second source is information that can be
derived from statistical reports submitted
weekly by some banks.
With respect to the VFCR data, the in
formation regularly collected is available
through April (Table 1). To obtain data for
May, we have prepared a special tabulation
covering the 49 largest banks under the
program. These data show that in April
these reporting banks increased their foreign
assets covered by the VFCR by $125 mil
lion, of which $26 million was for export
term loans. At the end of April, total foreign
assets subject to the VFCR for all banks
were about as large as they were at the be
ginning of the year.
Our special tabulation for May showed
that the 49 largest banks increased their for
eign assets by about $500 million. The re
ports showed that only six banks had in
creases of more than $10 million; most
banks had little activity, and 16 reduced
their foreign assets. In addition, these banks
reported an increase of $70 million in for
eign claims held for account of their cus
tomers— which would include collections on
exports— and this too was largely accounted
for by a few banks.
Data on foreign assets of banks derived
from weekly statistical reports are shown in
Table 2 (p. 5 0 1 ). These data reflect a sharp
increase in certain foreign assets in the week
of May 12, the statement week during which
the results of transactions undertaken at the
height of market activity would appear in
the reports. The increases were as follows
(millions of dollars):
Balances with foreign banks
Loans to foreign commercial
banks
Foreign commercial and indus
trial loans
Loans to foreign governments
and official institutions
165
331
201
41
738
There were a number of factors which
led to this unusually large rise in foreign
assets. Probably most important was the use
by foreign banks and other borrowers of
the credit lines that had been established
with U.S. banks in earlier periods. Drawings
on these credit lines may have represented
a hedge by the foreign borrowers against
exchange rate changes, but since the loans
are primarily in dollars they do not represent
foreign exchange activity for the U.S. banks
involved. The increase in balances held with
foreign banks was also unusually large, al
though it was substantially reversed in the
following week. In this case, banks may
have been acting both on their own account
and in order to be in a position to meet the
demands of their customers.
500
FEDERAL RESERVE BULLETIN □ JUNE 1971
I believe these data help to delineate the
role of the banks in the large international
capital flows that occurred in late April and
early May. However, this is only a limited
part of the total flow of capital in that pe
riod. While we cannot measure this flow
directly, it was evidently large. This con
clusion is clearly suggested by changes in
reserve assets of major foreign countries.
These reserves— as recorded— increased by
about $1V4 billion in April and by some
$4 billion in May— mainly in the early part
of the month.
Although we have tried to put together the
data most relevant to your questions, I must
emphasize that it will still be some time be
fore we have available the full set of sta
tistical reports with which we can measure
all the types of capital flows that enter the
balance of payments.
CONCLUDING COMMENT
I would like to conclude by emphasizing
again the role of the VFCR and the other
restraints on capital outflows under present
circumstances. Over the last few months,
banks have consumed much of the leeway
that they have had under their ceilings, so
that the restraints have pressed increasingly
on bank outflow of funds. The largest banks,
in particular, are just about at their General
Ceilings. There is every reason to expect
that a significant relaxation or a removal of
the guideline restraints at this time would
be followed by a substantial outpouring of
funds from the United States.
□
TABLE 1
FO REIG N A S S E T S O F U .S . BA N K S S U B JE C T TO VFCR C E IL IN G S
Dollar amounts in millions
End of year
End of month, 1971
Item
1964
1965
1967
1966
1968
1969
1970r
Jan .r
Feb.r
M ar.r
Apr.
154
161
148
151
161
169
171
165
165
169
169
General Ceiling: 1
Aggregate ceiling........................... .............
9,495
Assets under ceiling2.....................
Change from previous date........... .............
Apparent leeway............................ .............
9,973
9,652
+157
321
10,407
9,496
-1 5 6
911
11,069
9,865
+369
1,204
9,729
9,253
-6 1 2
476
10,092
9,398
+145
694
9,968
9,353
-4 5
615
9,947
9,069
-2 8 4
878
9,914
9,073
+4
841
9,908
9,174
+101
734
9,905
9,262
+88
643
...............................................................................
1,264
...............................................................................
16
................................................................................................
...............................................................................
1,248
1,423
190
+174
1,234
1,431
210
+20
1,221
1,425
218
+8
1,206
1 442
248
+30
1,194
1 442
274
+26
1,168
Number of reporting banks.............
Export Term-Loan Ceiling:3
Aggregate ceiling...........................
Assets under ceiling4.....................
Change from previous date...........
Apparent leeway............................
Total General and Export TermLoan Ceilings:
Aggregate ceilings.......................... .............
9,495
Assets under ceilings.....................
Change from previous date........... .............
Apparent leeway............................ .............
9,973
9,652
+157
321
10,407
9,496
-1 56
911
11,069
9,865
+369
1,204
9,729
9,253
-6 1 2
476
11,356
9,414
+161
1,942
11,391
9,543
+129
1,942
11,378
9,288
-255
1,849
11,339
9,291
+3
2,099
11,350
9,422
+131
1,928
11,347
9,536
+114
1,811
Total foreign assets held for own
account 5.........................................
9,719
9,958
9,844
10,202
9,844
10,158
10,614
10,262
10,285
10,509
10,634
Change from previous date.............. .............
+239
-1 1 4
+358
-3 5 8
+314
+456
-3 5 2
+23
+224
+125
1 Prior to December 1969, “Target Ceiling.”
2 Total foreign assets reported on Treasury Foreign Exchange
Forms B-2 and B-3: minus (1) amounts held for accounts of customers;
(2) loans guaranteed or participated in by the Export-Import Bank,
guaranteed by the Department of Defense, or insured by the FCIA;
(3) beginning March 1968, changes after February 29, 1968, in claims
on residents of Canada held for own account; and (4) export term
loans (maturity over I year) placed on banks’ books after Nov. 30,
1969, plus foreign assets held for own account but not reported on
Forms B-2 and B-3.
3 0.5 per cent of reporting banks’ total assets as of Dec. 31, 1968.
4 See point (4) of footnote 2.
5 Total foreign assets reported on Treasury Foreign Exchange
Forms B-2 and B-3, plus foreign assets held for own account not
reported on those forms, minus amounts held for account of customers.
N o t e .—Data are latest available as of June 3,1971.
STATEMENTS TO CONGRESS
501
TABLE 2
SELEC TED FO REIG N A S S E T S OF U .S . BA N K S R E PO R T E D WEEKLY, M A R C H -JU N E 1 9 7 1
In millions of dollars
Item
March
10
Loans to foreign commercial
banks........................................ Amt.
........................................ Chg.
Foreign commercial and
industrial loans........................ Amt.
......................... Chg.
Balances with foreign banks....... Amt.
........Chg.
Total.........................................Amt.
........................................ Chg.
Loans to foreign governments
and official institutions............Amt.
............Chg.
T otal.............................................Amt.
............................................ Chg.
17
April
24
14
21
28
12
June
19
26
1,504 1,507 1,450 1,395 1,338 1,451
+3
-5 7
-5 5
-5 7 + 113
1,474 1,412 1,488 1,384
+23
- 6 2 +76 -1 0 4
1,715 1,861 1,866 1,750
+331 +146
+ 5 -116
2,420 2,462 2,517 2,525 2,549 2,475
+42
+55
+ 8 +24 - 7 4
381
464
476
508
430
531
+83
+12 +32 - 7 8 + 101
2,487 2,464 2,535 2,480
+12
- 2 3 +71 -5 5
546
539
585
535
+15
- 7 +46 - 5 0
2,681 2,665 2,703 2,826
+201
- 1 6 +38 + 123
700
563 544
601
+165 -1 3 7 -1 9 +57
4,305 4,433 4,443 4,428 4,317 4,457 4,507 4,415 4,608 4,399
+ 128 +10
-1 5 -111 + 140
+ 50
- 9 2 +193 -2 0 9
5,096 5,089 5,113 5,177
+697
- 7 +24 +64
760
762
+2
757
-5
789
+32
783
-6
770
-1 3
802
+32
786
-1 6
805
+19
767
-3 8
808
+41
800
-8
814
+ 14
836
+22
5,065 5,195 5,200 5,217 5,100 5,227 5,309 5,201 5,413 5,166 5,904 5,889 5,927 6,013
+ 130
+ 5 +17 -1 1 7 + 127 +82 -1 0 8 +212 -2 4 7 +738 -1 5
+38 +86
S o u r c e .— Loans to and balances with foreign banks and loans to
foreign governments and official institutions are Weekly Condition
Report data; foreign commercial and industrial loans are from weekly
31
May
(Federal Reserve) commercial and industrial loans series; data for
May 26 and June 2 are preliminary.
Record of Policy Actions
of the Federal Open Market Committee
Records of policy actions taken by the Federal Open Market Com
mittee at each meeting, in the form in which they will appear in the
Board’s Annual Report, are released approximately 90 days following
the date of the meeting and are subsequently published in the Federal
Reserve B u l l e t i n .
The record for each meeting includes the votes on the policy deci
sions made at the meeting as well as a resume of the basis for the
decisions. The summary descriptions of economic and financial condi
tions are based on the information that was available to the Committee
at the time of the meeting, rather than on data as they may have
been revised since then.
Policy directives of the Federal Open Market Committee are issued
to the Federal Reserve Bank of New York— the Bank selected by
the Committee to execute transactions for the System Open Market
Account.
Records of policy actions have been published regularly in the
B u l l e t i n beginning with the July 1967 issue, and such records have
continued to be published in the Board’s Annual Reports.
The records for the first two meetings held in 1971 were published
in the B u l l e t i n s for April, pages 320-27, and May, pages 391-98.
The record for the meeting held on March 9, 1971, follows:
503
504
FEDERAL RESERVE BULLETIN □ JUNE 1971
MEETING HELD ON MARCH 9, 1971
1. Authority to effect transactions in System Account.
Revised official estimates indicated that real output of goods and
services had declined at an annual rate of 3.9 per cent in the fourth
quarter of 1970. It appeared that real GNP would rise substantially
in the current quarter, largely as a result of the recovery of produc
tion in the automobile industry following settlement in late November
of the strike at a major producer.
According to preliminary indications industrial production declined
slightly in February, following 2 months of advance, as further
increases in output of motor vehicles and steel were more than offset
by continued reductions in output of business and defense equipment.
Employment also declined in February, but because there was an even
larger decline in the labor force the unemployment rate edged down
to 5.8 from 6.0 per cent in January. Weekly data suggested that
retail sales had risen in February at both automobile dealers and
other types of stores. Apart from autos, however, it appeared that
average retail sales in January and February were little changed from
the fourth quarter. In January private housing starts fell sharply—
reversing the unusually large increase of the previous month— but
they remained at a high level.
Recent movements in major price indexes had been diverse.
Average wholesale prices rose substantially from mid-January to
mid-February, as a result of a marked increase in prices of farm
products and foods; prices of industrial commodities rose less than
in most other recent months. In January the advance in the consumer
price index moderated from the sharp December increase. Mean
while, wage rates continued to rise rapidly in most sectors of the
economy.
Staff projections suggested that growth in real GNP would slow
in the second quarter from its current high rate, mainly because the
post-strike recovery in the automobile industry would no longer be
providing unusual stimulus to consumer and business spending on
autos and trucks. In addition, defense outlays were expected to
decline. On the other hand, it seemed likely that residential construc
tion expenditures and State and local government outlays would con
RECORD OF POLICY ACTIONS OF FOMC
tinue to rise at substantial rates, and that the stockpiling of steel in
anticipation of a possible strike in that industry in August— which
already was making an appreciable contribution to over-all business
investment in inventories— would increase in importance. Also, it
was expected that some strength would be imparted to consumer
spending by payments late in the quarter of an anticipated increase
in social security benefits retroactive to the beginning of the year.
The U.S. foreign trade surplus narrowed further in January,
extending the trend begun in m id-1970. The chief factor in the
deterioration was a sharp rise in the total value of imports. The
over-all balance of payments in the January-February period con
tinued very heavily in deficit on the official settlements basis. On the
liquidity basis the deficit was at a rate much larger than in the second
half of 1970, reflecting for the most part adverse capital flows stem
ming from the wide differentials between short-term interest rates
in the United States and abroad.
Short-term interest rates in Britain had risen since the beginning
of the year, and rates in Germany had fallen less than U.S. rates
and Euro-dollar rates. Largely in consequence of interest rate dif
ferences, the dollar was at the floor against nearly all major currencies
in the exchange markets in February. The Bank of Canada reduced
its discount rate by Vx percentage point in mid-February and by a
further V2 point, to 5 X
A per cent, effective February 24. On Febru
ary 26, the Export-Import Bank offered an additional %Vi billion of
special securities to overseas branches of U.S. banks, for payment
March 3.
In domestic financial markets short-term interest rates had con
tinued to decline in recent weeks. For example, the market rate on
3-month Treasury bills, at 3.32 per cent on the day before this meet
ing, was 50 basis points below its level 4 weeks earlier. Discount rates
at Federal Reserve Banks were reduced by another quarter of a
percentage point, to 4 3A per cent, effective February 13 (February 19
for the N ew York Reserve B ank), and commercial banks lowered
their prime lending rate again, from 6 to 5 3A per cent, effective Febru
ary 16. Further declines also had been recorded recently in bank
offering rates on large-denomination C D ’s and in rates on commercial
and finance company paper.
In contrast, yields on new issues of corporate and municipal bonds
505
506
FEDERAL RESERVE BULLETIN □ JUNE 1971
— which also had been declining earlier— turned up in early Febru
ary and rose considerably over the course of the following weeks.
These yield increases reflected the continuing very heavy calendar of
new offerings—particularly of corporate bonds— and apparently also
a growing belief among investors that long-term interest rates were at
or near their cyclical lows. Yields rose only slightly on long-term
Treasury bonds and they moved down on intermediate-term Treasury
issues, in part because of sizable purchases of such securities by the
Federal Reserve.
Interest rates on residential mortgages declined further in Febru
ary in secondary markets for federally insured loans, and on February
18 the ceiling rate on such loans was reduced by administrative action
from IVi to 7 per cent— the third half-point cut in 3 months.
Deposit inflows at nonbank thrift institutions, which had reached
extraordinarily high rates in January, continued large in the first
half of February.
At commercial banks the rate of growth in consumer-type time
and savings deposits was exceptionally rapid in February, but the
expansion in large-denomination CD’s slowed somewhat further. The
volume of business loans outstanding (including loans that had been
sold to affiliates) increased substantially, following a moderate
rise in January and declines in the four preceding months. Banks
again made sizable additions to their holdings of securities.
Total bank credit, as measured by the adjusted proxy series—
daily-average member bank deposits, adjusted to include funds from
nondeposit sources— increased considerably further on the average
in February. Sharp increases also were recorded for two key measures
of the money stock— M u defined as private demand deposits plus
currency in circulation, and M 2, defined as M 1 plus commercial bank
time deposits other than large-denomination CD’s. For all of these
aggregates the growth rates in February exceeded those expected at
the time of the preceding meeting of the Committee. For both of the
money stock series, however, earlier estimates of the increase in
January had been revised downward somewhat, and for M 1 the
February expansion followed a number of months in which growth
had fallen well short of Committee expectations. The strength of the
aggregates in February appeared to be related to the step-up in the
growth of business loans at banks and, more generally, to the first-
RECORD OF POLICY ACTIONS OF FOMC
quarter bulge in economic activity in the aftermath of the auto strike.
System open market operations had been directed at achieving
somewhat easier conditions in the money market shortly after the
February 9 Committee meeting, when revised data for late January
and tentative estimates for early February suggested that both
and M2 were growing less rapidly than desired. Subsequently,
however, new data becoming available indicated that these aggre
gates were currently expanding at rates at or above those desired, and
operations were directed at maintaining prevailing conditions. The
Federal funds rate fluctuated rather widely during the period, but
most recently it had averaged about 3Vi per cent, compared with
the average of about 334 per cent that had prevailed shortly before
the February 9 meeting. In recent weeks needs for reserves had been
met to an important extent by System purchases of intermediate- and
long-term Treasury securities.
Staff analysis suggested that, if prevailing money market condi
tions were maintained, both Mi and M 2 would expand considerably
less in March than they had in February, and that over the first
quarter as a whole they would grow at annual rates of about 7 and
16 per cent, respectively. The adjusted bank credit proxy was pro
jected to continue upward in March at a pace close to that of
February, and to increase at about a 12 per cent annual rate over
the first quarter. It was noted that, while the outlook for the monetary
aggregates in the second quarter was highly uncertain at this juncture,
present indications suggested that M 1 would grow more rapidly than
in the first quarter if money market conditions remained unchanged,
and that M2 and the proxy series would grow a little less rapidly.
In the Committee’s discussion considerable concern was expressed
about the recent sharp increases in corporate and municipal bond
yields, and the members agreed that it would be desirable to accommo
date renewed declines in long-term interest rates generally. At the
same time, there was widespread sentiment to the effect that further
sizable declines in short-term interest rates would not serve a useful
purpose. Indeed, in light of the expected growth rates in the monetary
and credit aggregates and the recent large capital outflows, a number
of members thought that some modest increase in short-term rates
would be desirable if— as they considered likely— such a development
would not be inconsistent with a downdrift in long-term rates. How
507
508
FEDERAL RESERVE BULLETIN □ JUNE 1971
ever, other members believed that any significant rise in short-term
rates at this time would risk putting upward pressure on long-term
rates.
The members also expressed diverse views about the emphasis that
should be placed on the behavior of the monetary and credit aggre
gates in making open market operating decisions during coming
weeks, and about the appropriate rates of growth in the aggregates
over the months ahead. In the latter connection, some members
expressed concern about the relatively high growth rates projected
by the staff for the period through the second quarter on the assump
tion of unchanged money market conditions, and especially about
the acceleration anticipated in M ±. Others, however, stressed the
uncertainties attached to the projections for the later months of the
period covered and indicated that they were not disturbed by the
near-term outlook for the aggregates— particularly in light of the
shortfalls in M 1 experienced in other recent months.
At the conclusion of the discussion the Committee decided that
open market operations at present should be directed at maintaining
prevailing money market conditions while accommodating any down
ward movements in long-term interest rates. A proviso was added
calling for modification of money market conditions if during coming
weeks the monetary and credit aggregates appeared to be deviating
widely from the growth paths consistent with the first-quarter rates
of expansion cited above. Specifically, money market rates were to
be increased somewhat if the aggregates were rising considerably
faster than expected, but in light of recent declines in such rates they
were to be shaded down only slightly if growth were markedly below
expectations. The Committee also agreed that its objectives for
interest rates would be served if, to the extent feasible, needs to
supply reserves continued to be met by purchases of longer-term
Treasury securities.
The following current economic 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, which declined in the fourth quarter
of 1970, is rising in the current quarter primarily because of the
resumption of higher automobile production. Although the unem
ployment rate has edged down recently, it remains high. Wage rates
RECORD OF POLICY ACTIONS OF FOMC
in most sectors are continuing to rise at a rapid pace. Movements
in major price measures have been diverse; most recently, the rate
of advance moderated for consumer prices and wholesale prices of
industrial commodities, but wholesale prices of farm products and
foods rose sharply. Bank credit increased considerably further in
February, as business loans strengthened substantially and banks
again made sizable additions to their holdings of securities. The
money stock both narrowly and broadly defined expanded sharply
in February. Short-term interest rates and mortgage rates have
fallen further in recent weeks but yields on new issues of corporate
and municipal bonds have risen considerably, in part as a result
of the very heavy calendar of offerings. The over-all balance of pay
ments deficit in January and February was exceptionally large.
Imports increased more rapidly than exports in January, and capital
outflows have been stimulated by widened short-term interest rate
differentials. In light of the foregoing developments, it is the policy
of the Federal Open Market Committee to foster financial condi
tions conducive to the resumption of sustainable economic growth,
while encouraging an orderly reduction in the rate of inflation and
the attainment of reasonable equilibrium in the country’s balance
of payments.
To implement this policy, System open market operations until
the next meeting of the Committee shall be conducted with a view
to maintaining prevailing money market conditions while accommo
dating any downward movements in long-term rates; provided that
money market conditions shall be modified if it appears that the
monetary and credit aggregates are deviating significantly from the
growth paths expected.
Votes for this action: Messrs. Burns, Hayes,
Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo,
Mitchell, Morris, Robertson, and Sherrill. Votes
against this action: None.
2. Amendment to authorization for System foreign currency
operations.
On recommendation of the Special Manager of the System Open
Market Account the Committee amended paragraph 3 of the
authorization for System foreign currency operations to authorize
the purchase of currencies to be used for the liquidation of System
509
510
FEDERAL RESERVE BULLETIN □ JUNE 1971
swap commitments from the foreign central bank drawn on, at the
same exchange rate as that employed in the drawing to be liqui
dated. Prior to this amendment, the paragraph had specified that
unless otherwise expressly authorized by the Committee all transac
tions in foreign currencies undertaken under paragraph 1(A) of
the authorization should be at prevailing market rates. As a result
of this action, paragraph 3 read as follows:
3. Currencies to be used for liquidation of System swap commit
ments may be purchased from the foreign central bank drawn on,
at the same exchange rate as that employed in the drawing to be
liquidated. Apart from any such purchases at the rate of the
drawing, all transactions in foreign currencies undertaken under
paragraph 1(A) above shall, unless otherwise expressly authorized
by the Committee, be at prevailing market rates and no attempt
shall be made to establish rates that appear to be out of line with
underlying market forces.
Votes for this action: Messrs. Burns, Hayes,
Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo,
Mitchell, Morris, Robertson, and Sherrill. Votes
against this action: None.
Discussions had been under way recently with certain central
banks in the System’s swap network regarding the possibility of using
new procedures in connection with the liquidation of System swap
drawings in cases in which it was necessary to obtain the foreign
currency required for liquidation by purchasing it directly from the
central bank drawn on. It had been noted that both parties were
exposed to a risk of loss if such transactions could be made only
at the rate prevailing in the foreign exchange market at the time
of repayment, and that such risks could be avoided if it were
understood in advance that the currency could be purchased from
the foreign central bank at the same exchange rate as that em
ployed in the drawing to be liquidated. The Committee concurred
in the judgment of the Special Manager that it would be appropriate
to enter into such understandings with foreign central banks at the
time a System drawing was made if the foreign bank were agreeable.
It was specified that such understandings should not preclude Fed
eral Reserve repayment of swap drawings on or before maturity
RECORD OF POLICY ACTIONS OF FOMC
through purchase of the foreign currency required at market
rates in the foreign exchange market or elsewhere.
3.
Review of continuing authorizations.
This being the first meeting of the Federal Open Market Com
mittee following the election of new members from the Federal
Reserve Banks to serve for the year beginning March 1, 1971,
and their assumption of duties, the Committee followed its customary
practice of reviewing all of its continuing authorizations and direc
tives. The action taken with respect to the authorization for System
foreign currency operations has been described in the preceding
portion of the record for this date. Except for the change resulting
from that action, the Committee reaffirmed the authorization, and
also the foreign currency directive and the continuing authority
directive with respect to domestic open market operations, in the
form in which they were outstanding at the beginning of the year
1971.
Votes for these actions: Messrs. Burns, Hayes,
Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo,
Mitchell, Morris, Robertson, and Sherrill. Votes
against these actions: None.
In connection with the review of the continuing authority directive
for domestic operations, the Committee took special note of para
graph 3, which authorized the Reserve Banks to engage in lending
of U.S. Government securities held in the System Open Market
Account under such instructions as the Committee might specify
from time to time. That paragraph had been added to the directive
on October 7, 1969, on the basis of a judgment by the Committee
that in the existing circumstances such lending of securities was
reasonably necessary to the effective conduct of open market opera
tions and to the effectuation of open market policies, and on the
understanding that the authorization would be reviewed periodically.
At this meeting the Committee concurred in the judgment of the
Manager of the System Open Market Account that the lending
activity in question remained necessary and, accordingly, that the
authorization should remain in effect subject to periodic review.
511
Law Department
Statutes, regulations, interpretations, and decisions
INTEREST ON DEPOSITS
By Act approved May 18, 1971 (Public Law
92-15), Congress extended until June 1, 1973, the
flexible authority of the Board, the Federal
Deposit Insurance Corporation, and the Federal
Home Loan Bank Board in regulating the
maximum rates of interest or dividends payable
by insured banks and savings and loan associa
tions on deposits or share accounts. Congress
earlier this year had extended the authority until
June 1, 1971, by Joint Resolution approved March
31, 1971 (Public Law 92-8).
BANK HOLDING COMPANIES
The Board of Governors has amended section
222.4(a), (b), and (c) of Regulation Y, “Bank
Holding Companies”, effective June 15, 1971,
as the initial implementation of its regulatory
authority with respect to nonbanking activities of
bank holding companies under section 4(c) (8) of
the Bank Holding Company Act, as amended by
the 1970 Amendments. An accompanying inter
pretation was issued by the Board expressing its
views on several questions that arose during the
course of its consideration of this matter. Subparagraph (8) of section 222.4(a), added effec
tive July 1, 1971, embodies the Board’s deter
mination regarding data processing as closely
related to banking; a paragraph was added to
the interpretation to clarify the Board’s views on
this matter. +
The Board has also added section 222.4(e),
effective July 1, 1971, with respect to acquisitions
by holding companies under section 4(c) (5) of
the Act of shares of the kinds eligible for investf In connection with these actions, the Board approved
Form F.R. Y-4, Application for Prior Approval of an
Acquisition Pursuant to Section 4 (c )(8 ) of the Bank
Holding Company Act; Form F.R. Y-4A, Form for
Publication of Notice of Proposed Nonbanking Activities
to be Engaged in by a Bank Holding Company De Novo;
and Form F.R. Y-4B, Form for Publication of Notice of
Proposed Acquisition of Shares by Bank Holding Com
pany of Going Concern Engaged in Nonbanking Activities.
Copies of these forms are available at all Federal Reserve
Banks.
512
ment by national banks. The text of the amend
ments and interpretation read as follows:
AMENDMENTS TO REGULATION Y
Effective June 15, 1971, section 222.4(a), (b ),
and (c) is amended, and effective July 1, 1971,
subparagraph (8) is added to section 222.4(a)
and paragraph (e) is added to section 222.4 as
set forth below:
SECTION 222.4— NONBANKING
ACTIVITIES
(a)
Activities closely related to banking or
managing or controlling banks. In accordance
with the procedures set forth in paragraphs (b)
and (c) of this section, any bank holding com
pany may engage, or retain or acquire an interest
in a company that engages, solely in one or more
of the activities specified below, including such
incidental activities as are necessary to carry on
the activities so specified. Any bank holding com
pany that is of the opinion that other activities in
the circumstances surrounding a particular case
are closely related to banking or managing or
controlling banks may file an application in
accordance with the procedures set forth in para
graph (b )(2 ). As to such an application, the
Board will publish in the Federal Register a notice
of opportunity for hearing only if it believes that
there is a reasonable basis for the holding com
pany’s opinion. The following activities have been
determined by the Board to be so closely related
to banking or managing or controlling banks as
to be a proper incident thereto:
(1)
making or acquiring, for its own account
or for the account of others, loans and other
extensions of credit (including issuing letters of
credit and accepting drafts), such as would be
made, for example, by a mortgage, finance, credit
card, or factoring company; *
* Operating a savings and loan association is not
regarded by the Board as within the description of this
activity. Whether to propose expanding activity (2) to
include operating that type of financial institution is
under consideration by the Board.
(2) operating as an industrial bank, Morris
Plan bank, or industrial loan company, in the
manner authorized by State law so long as the
institution does not both accept demand deposits
and make commercial loans;
(3) servicing loans and other extensions of
credit for any person;
(4) performing or carrying on any one or
more of the functions or activities that may be
performed or carried on by a trust company
(including activities of a fiduciary, agency, or
custodian nature), in the manner authorized by
State law so long as the institution does not both
accept demand deposits and make commercial
loans; **
(5) acting as investment or financial adviser,
including (i) serving as the advisory company
for a mortgage or a real estate investment trust
and (ii) furnishing economic or financial informa
tion; **
(6) leasing personal property and equipment,
or acting as agent, broker, or adviser in leasing
of such property, where at the inception of the
initial lease the expectation is that the effect of
the transaction and reasonably anticipated future
transactions with the same lessee as to the same
property will be to compensate the lessor for not
less than the lessor’s full investment in the prop
erty;
(7) making equity and debt investments in
corporations or projects designed primarily to
promote community welfare, such as the eco
nomic rehabilitation and development of lowincome areas.***
(8 )(i) providing bookkeeping or data process
ing services for the internal operations of the
holding company and its subsidiaries and (ii)
storing and processing other banking, financial,
or related economic data, such as performing pay
roll, accounts receivable or payable, or billing
services.
(b )(1 ) De novo entry. A bank holding com
pany may engage de novo (or continue to engage
in an activity earlier commenced de novo)
directly or indirectly, solely in activities described
in paragraph (a), 45 days after the company has
* * Acting as investment adviser to an open-end in
vestment company or as a management consultant is not
regarded by the Board as within the description of this
activity. Whether to propose expanding activity (5) to
include acting in either or both of those capacities is
under consideration by the Board.
*** Investing in an industrial development corporation
is not regarded by the Board as within the description of
this activity. Whether to propose adding that and other
activities to the list is under consideration.
furnished its Reserve Bank with a copy of a
notice of the proposal (in substantially the same
form as F.R. Y-4A) published within the preced
ing 30 days in a newspaper of general circulation
in the communities to be served, unless the com
pany is notified to the contrary within that time or
unless it is permitted to consummate the transac
tion at an earlier date on the basis of exigent
circumstances of a particular case. If adverse
comments of a substantive nature are received
by the Reserve Bank within 30 days after the
company has so published its proposal,1 or if it
otherwise appears appropriate in a particular case,
the Reserve Bank may inform the company that
(i) the proposal shall not be consummated until
specifically authorized by the Reserve Bank or
by the Board or (ii) the proposal should be
processed in accordance with the procedures of
subparagraph (2).
(2)
Acquisition of going concern. A bank
holding company may apply to the Board to
acquire or retain the assets of or shares in a com
pany engaged solely in activities described in
paragraph (a) by filing an application with its
Reserve Bank (Form F.R. Y -4). Every such
application shall be accompanied by a copy of
a notice of the proposal (in substantially the same
form as F.R. Y-4B) published within the preced
ing 30 days in a newspaper of general circulation
in the communities to be served. The Board will
publish in the Federal Register notice of any such
application and will give interested persons an
opportunity to express their views (including,
where appropriate, by means of a hearing) on
the question whether performance of the activity
proposed by the holding company can reasonably
be expected to produce benefits to the public,
such as greater convenience, increased competi
tion, or gains in efficiency, that outweigh possible
adverse effects, such as undue concentration of
resources, decreased or unfair competition, con
flicts of interests, or unsound banking practices.
(c)
Tie-ins, alterations, relocations, consolida
tions. Except as otherwise provided in an order
in a particular case, the following conditions shall
apply with respect to every acquisition con
summated or activity engaged in on the authority
of § 4(c) (8) of the Act: (1) the provision of any
1 If a Reserve Bank decides that adverse comments are
not of a substantive nature, the person submitting the
comments may request review by the Board of that
decision in accordance with the provisions of § 265.3 of
the Board’s Rules Regarding Delegation of Authority
(12 CFR 265.3) by filing a petition for review with the
Secretary of the Board.
513
514
credit, property or services involved shall not be
subject to any condition which, if imposed by a
bank, would constitute an unlawful tie-in arrange
ment under section 106 of the Bank Holding
Company Act Amendments of 1970; (2) the
activities involved shall not be altered in any
significant respect from those considered by the
Board in making the determination, nor provided
at any location other than those described in the
notice published with respect to such determina
tion, except upon compliance with the procedures
of paragraph (b) (1); and (3) no merger, or
acquisition of assets other than in the ordinary
course of business, to which the acquired company
is a party shall be consummated without prior
Board approval, if thereafter the bank holding
company will continue to own, directly or in
directly, more than five per cent of the voting
shares of such company or its successor.
FEDERAL RESERVE BULLETIN □ JUNE 1971
closely related to banking are described in gen
eral terms that will require interpretation from
time to time. The Board’s views on some ques
tions that have arisen are set forth below.
Subsidiary engaging in activities on basis of
more than one exemption. Section 222.4(a) states
that a company whose ownership by a bank hold
ing company is authorized on the basis of that
section may engage solely in specified activities.
That limitation refers only to activities the au
thority for which depends on § 4 ( c ) ( 8 ) of the
Act. It does not prevent a holding company from
establishing one subsidiary to engage, for example,
in activities specified in § 222.4(a) and also in
activities that fall within the scope of § 4 (c )(1 )
(C) of the Act— the “servicing” exemption.
A ctivities approved prior to 1970 amendments.
The amendments to § 222.4(a) do not apply to
restrict the activities of a company previously
^
*
*
sfc
Hs
approved by the Board on the basis of § 4 (c )(8 )
of
the Act. Activities of a company authorized
(e)
Activities of companies in which national
on the basis of § 4 (c )(8 ) either before the 1970
banks may invest. No bank holding company or
Amendments or pursuant to the amended
subsidiary thereof that is not a bank or subsidiary
§ 222.4(a) may be shifted in a corporate reorga
of a bank may, after June 30, 1971, acquire shares
nization to another company within the holding
on the basis of § 4 (c )(5 ) of the Act unless such
company system without complying with the
shares are of the kinds and amounts explicitly
procedures of § 222.4(b), as long as all the
eligible by Federal statute for investment by a
activities of such company are permissible under
national bank. A national bank or a subsidiary
one of the exemptions in § 4 of the Act.
thereof may acquire or retain shares on the basis
Leasing activities. Permissible leasing activities
of § 4 ( c ) ( 5 ) in accordance with the rules and
are limited to transactions where the lease is the
regulations of the Comptroller of the Currency.
functional equivalent of an extension of credit
So far as Federal law is concerned, a Stateto the lessee. Accordingly, a company may
chartered bank or a subsidiary thereof may (1)
engage in leasing under § 222.4(a) if, at the time
acquire or retain shares on the basis of § 4 (c )(5 )
of the acquisition of the property by the lessor,
if such shares are of the kinds and amounts
there is a lease agreement that will yield a
explicitly eligible by Federal statute for investment
return from (1) rentals, (2) estimated salvage
by a national bank and (2) acquire or retain all
value at the end of the minimum useful life
(but, except for directors’ qualifying shares, not
allowed by the Internal Revenue Service, and
less than all of the shares of a company that
(3) estimated tax benefits (investment tax credit
engages solely in activities in which the parent
and tax deferral from accelerated depreciation)
bank may engage, at locations at which the bank
that would result in full recovery of the lessor’s
may engage in the activity, and subject to the
acquisition cost. The Board understands that by
same limitations as if the bank were engaging in
law some municipal corporations may not enter
the activity directly.
into a lease for a period in excess of one year.
Such an impediment does not disqualify a com
INTERPRETATION OF REGULATION Y
pany authorized under § 222.4(a) from entering
ACTIVITIES CLOSELY RELATED TO
into a lease with the municipality if the company
BANKING
reasonably anticipates that the municipality will
renew the lease annually until such time as the
Effective June 15, 1971, the Board of Gover
company is fully compensated for its investment
nors has amended § 222.4(a) of Regulation Y to
implement its regulatory authority under § 4(c)
in the leased property. A company authorized
under § 222.4(a) may also engage in so-called
(8) of the Bank Holding Company Act. In some
“bridge” lease financing where the lease is short
respects activities determined by the Board to be
LAW DEPARTMENT
term pending completion of long-term financing,
by the same or another lender.
Com m unity projects. The authority of holding
companies under § 222.4(a) to invest in corpora
tions designed to promote the welfare of their
community is intended to permit holding com
panies to fulfill their civic responsibilities. Under
that authority a holding company may invest in
community development corporations established
pursuant to Federal or State law. It may also
participate in other civic projects, such as a
municipal parking facility sponsored by a local
civic organization as a means to promote greater
use by the public of the community’s facilities.
It does not, however, authorize investments (for
example, ownership of an apartment complex)
that are entered into to a substantial extent for
profit even though to some extent the investment
will benefit the community.
Relocation of activities. Under the procedures
in § 222.4(c), a holding company that wishes to
change the location at which it engages in
activities authorized pursuant to § 222.4(a) must
publish notice in a newspaper of general circula
tion in the community to be served. The Board
does not regard minor changes in location as
within the coverage of that requirement. A move
from one site to another within a one mile radius
would constitute such a minor change if the new
site is in the same State.
D ata processing. The authority of holding com
panies under § 222.4(a) to engage in data proc
essing activities is intended to permit holding
companies to process, by means of a computer or
otherwise, data for others of the kinds banks
have processed, by one means or another, in con
ducting their internal operations and accom
modating their customers. It is not intended to
permit holding companies to engage in automated
data processing activities by developing programs
either upon their own initiative or upon request,
unless the data involved are financially oriented.
The Board regards as incidental activities neces
sary to carry on the permissible activities in this
area the following: (i) making excess computer
time available to anyone so long as the only
involvement by the holding company system is
furnishing the facility and necessary operating
personnel; (ii) selling a byproduct of the develop
ment of a program for a permissible data process
ing activity; and (iii) furnishing any data process
ing service upon request of a customer if such
data processing service is not otherwise reasonably
available in the relevant market area.
515
RULES REGARDING
DELEGATION OF AUTHORITY
In connection with the recent amendments to
Regulation Y, the Board of Governors has
amended its Rules Regarding Delegation of Au
thority to delegate to the Reserve Banks (1)
authority to determine when to delay, or permit
expedition of, an acquisition under section 4(c)
(12) of the Bank Holding Company Act and
section 222.4(d) of Regulation Y, and (2) au
thority to permit holding companies to engage
de novo in activities the Board has determined to
be closely related to banking.
The delegation is reflected in subparagraphs
(19), (20), and (21), of section 265.2(f) of the
Board’s Rules Regarding Delegation of Authority.
The text of the amendments is set forth.
AMENDMENTS
Section 265.2(f) is amended by adding subparagraph (19), effective May 21, 1971, and
subparagraphs (20) and (21), effective June 15,
1971, as set forth below:
SECTION 265.2— SPECIFIC FUNCTIONS
DELEGATED TO BOARD EMPLOYEES
AND FEDERAL RESERVE BANKS
❖
*
*
*
*
(f)
Each Federal Reserve Bank is authorized,
as to member banks or other indicated organiza
tions headquartered in its district:
*
:|s
*
*
*
(19) Under § 222.4(d) of this Chapter (Regu
lation Y ),
(i) to notify a bank holding company that has
informed it of a proposed acquisition of a going
concern that, because the circumstances surround
ing the application indicate that additional infor
mation is required or that the acquisition should
be considered by the Board, the acquisition should
not be consummated until specifically authorized
by the Reserve Bank or by the Board.
(ii) to permit a bank holding company that
has informed it of a proposed acquisition of a
going concern to make the acquisition before the
expiration of the 45-day period referred to in that
paragraph, because exigent circumstances justify
consummation of the acquisition at an earlier time.
(20) Under § 222.4(b )(1) of this Chapter
(Regulation Y ), and subject to § 265.3 if a per
son submitting adverse comments that the Reserve
Bank has decided are not substantive files a peti
tion for review by the Board of that decision,
516
FEDERAL RESERVE BULLETIN □ JUNE 1971
(i) to permit a bank holding company that has
furnished it with a copy of a duly published
notice of a proposal to engage de novo in activities
specified in § 222.4(a) (or retain shares in a
company established de novo and engaging in such
activities) if its evaluation of the considerations
specified in § 4 (c )(8 ) of the Bank Holding Com
pany Act leads it to conclude that the proposal
can reasonably be expected to produce benefits to
the public.
(ii) to notify a bank holding company that has
furnished it with a duly published notice of the
kind described in clause (i) that the proposal
should not be consummated until specifically
authorized by the Reserve Bank or by the Board
or that the proposal should be processed in ac
cordance with the procedures of § 222.4(b) (2).
(iii) to permit a bank holding company that
has furnished it with a duly published notice of
the kind described in clause (i) to consummate the
proposal before the expiration of the 45-day
period referred to in § 222.4 (b )(1 ), because exi
gent circumstances justify consummation at an
earlier time.
(21)
Under § 222.4(c) (2) of this Chapter
(Regulation Y) to permit or stay a proposed de
novo modification or relocation of activities en
gaged in by a bank holding company on the same
basis as de novo proposals under the preceding
subparagraph (20).
ORDERS UNDER
BANK MERGER ACT
COMMERCIAL TRUST COMPANY OF
NEW JERSEY,
JERSEY CITY, NEW JERSEY
In the matter of the application of Com mercial
Trust Company of N ew Jersey, Jersey City, N ew
Jersey, for approval of acquisition of assets and
assumption of liabilities of Bergen County N a
tional Bank of Hackensack, Hackensack, N ew
Jersey.
O rder
t io n o f
A
p p r o v in g
A ssets
U
and
nder
A
p p l ic a t io n
A
s s u m p t io n
Bank M
erger
for
of
A
A
c q u is i
L ia b il it ie s
ct
There has come before the Board of Gov
ernors, pursuant to the Bank Merger Act (12
U.S.C. 1828(c)), an application by Commercial
Trust Company of New Jersey, Jersey City, New
Jersey ( “Commercial Trust”), a member State
bank of the Federal Reserve System, for the
Board’s prior approval of the merger of that bank
with Bergen County National Bank of Hacken
sack, Hackensack, New Jersey ( “Bergen Bank”),
by means of the purchase of assets and assump
tion of liabilities of Bergen Bank; as an incident
to the merger, the present office of Bergen Bank
would become a branch of Commercial Trust.
Notice of the proposed merger, in form approved
by the Board, has been published as required by
said Act.
In accordance with the Act, the Board re
quested reports on the competitive factors involved
from the Attorney General, the Comptroller of
the Currency, and the Federal Deposit Insurance
Corporation. The Board has considered all rele
vant material contained in the record in the light
of the factors set forth in the Act, including the
effect of the proposal on competition, the finan
cial and managerial resources and prospects of
the banks concerned, and the convenience and
needs of the communities to be served, and finds
that:
Commercial Trust ($175 million deposits)
operates six offices in Jersey City and five addi
tional offices elsewhere in Hudson County. Dur
ing 1970 Commercial Trust opened three branch
offices in Bergen County. The principal area
served by Commercial Trust is Jersey City and
the southeastern part of Hudson County from
which it derives over 90 per cent of its deposits,
and wherein it ranks as the second largest of the
12 area banks, controlling approximately 17 per
cent of area deposits. (All banking data are as of
June 30, 1970.)
Bergen Bank ($24 million deposits) maintains
its sole office, and is the smallest of four banks,
in the City of Hackensack (Bergen County).
Commercial Trust holds 5.5 per cent of the
deposits in the combined Hudson-Bergen County
area. Its share of such deposits would increase to
6.3 per cent upon consummation of the proposed
merger. Approval of the proposed transaction
would not increase substantially the concentration
of banking resources in any area.
The competitive effect of this proposal would
be confined principally to the City of Hackensack.
Commercial Trust has recently opened three
offices in Bergen County that are situated 9, 7,
and 5 miles from Hackensack in areas which
serve mainly as a base for those who commute to
New York City for employment. Neither Bergen
Bank nor Commercial Trust derives any sig
nificant portion of its business from the areas
served by the other bank, and the banks serve
517
LAW DEPARTMENT
essentially separate banking markets. Conse
quently, there is no substantial existing competi
tion between Commercial Trust and Bergen Bank.
Moreover, it does not appear that significant po
tential competition would be eliminated by con
summation of this proposal since under the home
office protection afforded by State Law Com
mercial Trust could not be permitted to branch
de novo into the City of Hackensack. Bergen
Bank is not an aggressive competitor to the three
larger Hackensack banks, and consummation of
this merger could serve to enhance the ability of
the resulting banking office to compete in the
area.
On the basis of the foregoing, the Board con
cludes that consummation of the proposal would
not eliminate significant existing or potential com
petition. Considerations pertaining to the financial
and managerial resources and future prospects
of the banks are consistent with approval of the
application. Although the banking needs of the
residents of Hackensack are being adequately
served at the present time by many banking offices
of large organizations, it appears that the pro
posed acquisition would replace a conservatively
operated institution with a more aggressive com
petitor in the Hackensack area, enlarge present
services offered to Bergen Bank’s customers, and
provide another source of specialized services now
being offered only by the larger Hackensack
banks. Therefore, convenience and needs con
siderations are consistent with and lend some
support to approval of the application. It is the
Board’s judgment that consummation of the pro
posed merger would be in the public interest, and
that the application should be approved.
It i s h e r e b y o r d e r e d , On the basis of the
findings summarized above, that said application
be and hereby is approved, provided that the
merger so approved shall not be consummated
(a) before the thirtieth calendar day following
the date of this Order or (b) later than three
months after the date of this Order, unless such
period is extended for good cause by the Board,
or by the Federal Reserve Bank of New York
pursuant to delegated authority.
By order of the Board of Governors, May 13,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, and Brimmer.
Absent and not voting: Governors Daane and Sher
rill.
(Signed) E l i z a b e t h L. C a r m i c h a e l ,
Assistant Secretary.
[s e a l ]
TRUST COMPANY OF GEORGIA,
ATLANTA, GEORGIA
In the m atter of the application of Trust C om
pany of Georgia, A tlanta , Georgia, for approval of
acquisition of assets and assumption o f liabilities
of Peachtree Bank and Trust C om pany , Chamblee, Georgia.
O rder
on
P e t it io n
fo r
R
e c o n s id e r a t io n
On February 22, 1971, the Board of Governors
issued an Order pursuant to the Bank Merger
Act (12 U.S.C. 1 8 2 8 (c)), approving an applica
tion by Trust Company of Georgia, Atlanta,
Georgia, for prior approval of the merger of Trust
Company with Peachtree Bank and Trust Com
pany, Chamblee, Georgia, by means of Trust
Company’s purchase of assets and assumption of
liabilities of Peachtree Bank.
In order to permit study of the complex pro
cedural and substantive issues raised by a petition
by the United States Department of Justice for
reconsideration of that Order, the Board, on
March 19, 1971, stayed its operation.
After study of those issues, the Board finds that
reconsideration of its Order of February 22, 1971
would be appropriate and in the public interest.
It i s h e r e b y o r d e r e d , For the reasons set
forth in the accompanying Statement and in the
Board’s Order of February 22, 1971, that the
Orders of March 19 and February 22, 1971 be
and hereby are vacated, and i t i s f u r t h e r o r
d e r e d , That the application be and hereby is
approved, provided that the merger so approved
shall not be consummated (a) before the thirtieth
calendar day following the date of this Order or
(b) later than three months after the date of this
Order, unless such period is extended for good
cause by the Board, or by the Federal Reserve
Bank of Atlanta pursuant to delegated authority.
By order of the Board of Governors, May 20,
1971.
Voting for this action: Chairman Burns and Gov
ernors Mitchell, Daane, Maisel, Brimmer and Sherrill.
Voting against this action (on the merits of the appli
cation) : Governor Robertson.
(Signed) K e n n e t h A. K e n y o n ,
D epu ty Secretary
[s e a l ]
Sta tem en t
On February 22, 1971 the Board of Governors
issued an Order pursuant to the Bank Merger
Act (12 U.S.C. 1 8 2 8 (c)), approving an applica
518
tion by Trust Company of Georgia, Atlanta,
Georgia ( “Trust Company”), for prior approval
of the merger of Trust Company with Peachtree
Bank and Trust Company, Chamblee, Georgia
( “Peachtree Bank”), by means of Trust Com
pany’s purchase of assets and assumption of lia
bilities of Peachtree Bank. As an incident to the
merger, the two offices of Peachtree Bank would
become branches of Trust Company.
On March 2, 1971, the Department of Justice
filed with the Board a petition requesting recon
sideration of the Board’s Order of February 22,
1971. The petition was brought pursuant to
§ 2 6 2 .3 (f)(6 ) of the Board’s Rules of Procedure,
which provides that the Board will not grant any
request for reconsideration unless “the request
presents relevant facts that, for good cause shown,
were not previously presented to the Board, or
unless it otherwise appears to the Board that
reconsideration would be appropriate.” Oppor
tunity was afforded Trust Company to reply to
the allegations of the Department and the Board
has given careful consideration to the briefs filed
on behalf of Trust Company and the Department.
On March 19, the Board stayed its February 22
Order to study the issues raised.
In its petition, the Department noted that,
pursuant to the Bank Merger Act, the Board had
requested from it a report on the competitive
factors involved in the application, but had not
been furnished the report within the statutorily
prescribed period because of the illness of certain
key personnel and incomplete information con
cerning the apparently unique banking relation
ships existing in the relevant Georgia markets.
The Department urged that the Board consider
certain additional information and arguments
bearing on the relation between Trust Company
and Peachtree Bank, and reconsider the competi
tive effects of the proposal in the light thereof.
Trust Company has urged that the Board deny
the Department’s request on the grounds, among
others, that the Department is not an appropriate
party to request reconsideration. Without decid
ing that question, or the question of whether the
petition presents relevant facts which, for good
cause shown, were not previously presented, the
Board finds it appropriate and in the public in
terest to vacate and reconsider its Order of
February 22, 1971 in the light of the issues raised
by the Department.
In its Order approving the application, the
Board indicated that its conclusions with respect
to the competitive effects of the proposal took
FEDERAL RESERVE BULLETIN □ JUNE 1971
account of the fact that Trust Company was
instrumental in organizing Peachtree Bank in
1960, and that the banks had been closely asso
ciated since that time. The Department does not
controvert those findings, but instead argues that,
in attributing significance to them in assessing the
competitive aspects of the transaction, the Board
applied an incorrect standard. It states that “the
mere existence of a ‘close relationship’ between
the two merging banks should not serve to release
the merger from the usual competitive considera
tions applied by the Board (or from the standards
of Clayton Act § 7 ).” It then proposes the fol
lowing as a test of the relevance of any relation
ship between two merging banks:
“[W]here a metropolitan bank in reality establishes
a new bank (rather than assisting others in establish
ing such a bank), the new bank may be in effect an
extension or branch of the existing bank. This occurs
where it, albeit indirectly, organizes, controls, and
finances the new bank. In such circumstances, a sub
sequent merger of the ‘affiliated’ bank into the large
Atlanta bank is not likely to have competitive sig
nificance. Absent this situation of original and con
tinuing control, however, we believe that the new
‘affiliated’ bank should be considered an independent
competitive factor and any subsequent acquisition or
merger evaluated according to traditional standards.”
At the outset, it should be clear that every bank
merger before the Board is subject to scrutiny
under the same standards, that is, whether its
effect “in any section of the country may be sub
stantially to lessen competition, or to tend to
create a monopoly, or . . . in any other manner
would be in restraint of trade.” The existence of a
factual situation, of whatever nature, which indi
cates that competition between two banks is not
substantial and is unlikely to become such does
not result in the application of different standards.
However, it may lead to a different conclusion
than would be reached if the same standards were
applied to a different factual situation. A conclu
sion as to whether a particular proposal may have
the effect of substantially lessening competition
must be based on the facts of the particular case,
and the Board is not authorized, much less re
quired, to ignore facts which bear on that con
clusion. A merger of two banks which are not
significant competitors cannot be regarded as
eliminating significant existing competition. And,
similarly, if future competition is unlikely— even
though possible— the merger cannot be regarded
as reasonably likely to lessen future competition.
This does not mean that every proposed merger
before the Board of two related banks receives
519
LAW DEPARTMENT
favorable consideration. First of all, considera
tion must be given to the question of whether
the relationship was anticompetitive in its origins;
if so, little weight should be attributed to such
relationship, since to do so might encourage
evasion of the law. Assuming, however, that the
relationship was not anticompetitive when estab
lished or fashioned so as to avoid legal restric
tions, its impact on competition— present and
future— should be considered realistically in de
termining whether approval of the transaction
would be in the public interest. If the effect of a
relationship is to create and sustain cooperation,
and not competition, between the banks, their
merger cannot reasonably be said to eliminate
presently existing competition between them. In
sofar as the future effects of the proposal are
concerned, that depends on whether it might
reasonably be anticipated that the existing inhibi
tions on competition might be terminated, so that,
if the banks were not merged, effective competi
tion between the banks would be likely. It may
be that, in a very highly concentrated market,
elimination of even a relatively remote possibility
of significant future competition would mean
that approval of the transaction would not be in
the public interest. But in no case does the
Board consider it appropriate to regard the elimi
nation of a remote possibility of future competi
tion as being the equivalent of the elimination of
a reasonable probability of such competition.1
Reexamination of the facts of the present case,
including those stressed by the Department, do
not persuade the Board that its original decision
was incorrect. Trust Company was largely re
sponsible for the founding of Peachtree Bank,
has supplied it with management (which con
tinues to participate in Trust Company’s retire
ment and profit-sharing plans), and has accorded
it all the assistance and cooperation which this
relationship implies. While it does not control
the bank or its policies, the relationship between
them is such that they cannot realistically be
regarded as significant competitors to each other.
1 It should be noted that Trust Company of Georgia, in
addition to being a bank, is also a bank holding com
pany. Had it established control over another bank
sufficiently firm to meet the Justice Department’s pro
posed standard, it would probably be regarded as violat
ing the Bank Holding Company Act. In such case, the
relationship between the two banks, being unlawful,
would properly be regarded as less durable than the
present relationship, not more so. It should also be
stressed that, under recent amendments to the Bank
Holding Company Act, the establishment of such control
by any bank over another requires prior approval of the
Board.
Moreover, while Trust Company apparently does
not have the ability to force continuation of the
relationship, the relationship appears to have
been mutually beneficial and there is no reason to
expect that either Trust Company or Peachtree
Bank would voluntarily discontinue it if their
merger were to be prohibited. The latter has
advised that almost 40 per cent of its IPC demand
deposits are in accounts whose size exceeds the
insurance maximum, and that most of them would
likely be moved elsewhere if the relationship were
terminated.
Nor do the facts suggest that, if Peachtree Bank
were to become truly independent of Trust Com
pany, competition would be so much enhanced
that the preservation of the mere possibility of
such occurrence should be accorded unusual sig
nificance. Peachtree Bank, with $15 million de
posits, has the eighth largest share of deposits in
DeKalb County (7 per cent) of the 19 banks
operating there. As indicated above, it would
likely be even smaller were its relationship with
Trust Company to be terminated. It is doubtful
that, as an independent, it would exert a significant
competitive influence on Trust Company or other
Atlanta banks.
Based on these facts, the Board concludes that
consummation of the transaction would not have
a substantially adverse effect on competition in
any relevant area. As to other factors required
to be considered by the Act, the Board incor
porates its findings and conclusions as set forth
in its Order of February 22, 1971.
On the basis of the record in this case, as sup
plemented by the petition and supporting docu
ments filed by the Department of Justice and
Applicant’s response thereto, it is the Board’s
judgment that the proposed merger would be in
the public interest and that the application should
be approved.
D
is s e n t in g
G
overnor
Sta t e m e n t
R
of
o bertso n
At the time the Board first considered this
application, I voted to approve on the grounds
that the facts were such that no significant change
in banking competition in the relevant area would
result. However, I am now convinced by the
Justice Department position that, since the rela
tionship between Trust Company and Peachtree
Bank does not constitute actual control, the banks
should be treated as independent institutions in
analyzing the competitive effects of the proposal.
520
Considering the facts in this context, I would
reverse my prior decision and deny the applica
tion, the approval of which will permanently
foreclose the possibility of future competition and
constitute a precedent that could lead to additional
anticompetitive mergers in areas where concen
tration of banking power is already great.
Moreover, I believe denial is called for even
under the method of analysis adopted by the
majority—which is to consider all facts bearing
on the present and potential ability of the banks
to compete, and to weigh the possibility of dis
affiliation with the benefits that would result if the
smaller bank became independent.
Admittedly the relationship between the banks
is such as to inhibit competition between them;
however, the possibility that Peachtree would
become independent is far from remote. The
record indicates that Trust Company’s initial offer
was rejected by Peachtree, that the two banks have
no common officers and directors, that common
stock ownership is minimal, and that the two
banks have pursued different commercial strate
gies. Clearly the relationship between the banks
is not so strong as to preclude the possibility of
disaffiliation.
Peachtree Bank is located in DeKalb County
(pop. 414,000). That county is situated to the
east of Atlanta and, as part of the Atlanta SMSA,
is one of the fastest growing areas in the country.
FEDERAL RESERVE BULLETIN □ JUNE 1971
Although DeKalb County was once basically a
“bedroom” suburb of Atlanta, the population
increase has been accompanied by an even larger
growth in the number and size of commercial and
industrial firms. Banking in Atlanta is dominated
by three banking organizations (including Trust
Company). In Fulton County—where Atlanta is
located— these three organizations control 73
per cent of deposits; in DeKalb County they con
trol 53 per cent of deposits. Additionally, the
three Atlanta banks have relationships with 12
banks in DeKalb County (including Peachtree),
which, in the aggregate, control 28 per cent of
that county’s deposits. If mergers involving those
12 banks and their “affiliated” institutions were to
be consummated, the three large Atlanta banks
would control 82 per cent of the DeKalb County
deposits, and 76 per cent of the deposits in the
two-county area.
In my judgment, these “affiliated” banks repre
sent a source of competition for the three Atlanta
banks. By approving the present application, the
Board has permitted Trust Company to increase
its share of DeKalb County deposits from 14 to
20 per cent, and has adopted a policy of remov
ing potential sources of deconcentration for the
Atlanta area.
For these reasons, I would deny the application
and preserve the realistic possibility that Peach
tree might become independent.
LAW DEPARTMENT
521
ORDERS UNDER SECTION 3 OF THE
BANK HOLDING COMPANY ACT
AMERICAN BANCSHARES,
INCORPORATED, NORTH MIAMI, FLORIDA
In the m atter of the application of Am erican
Bancshares, Incorporated, N orth M iami, Florida,
for approval of action to become a bank holding
company through the acquisition of 80 per cent
or more of the voting shares of The Second
National Bank of N orth Miami, N orth Miami;
Second National Bank of N orth M iam i Beach,
North M iam i Beach; and The National Bank of
St. Petersburg, St. Petersburg, all in Florida.
consummated (a) before the thirtieth calendar
day following the date of this Order or (b) later
than three months after the date of this Order,
unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank
of Atlanta pursuant to delegated authority.
By order of the Board of Governors, May 13,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, and Brimmer.
Absent and not voting: Governors Daane and Sher
rill.
(Signed)
E liz a b e th
L.
C a rm ic h a e l,
A ssistan t Seeretary .
O rder A
a
p p r o v in g
B ank H
A
c t io n
o l d in g
to
Becom e
C om pany
There has come before the Board of Governors,
pursuant to section 3 (a )(1 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a )), an application by
American
Bancshares, Incorporated, North
Miami, Florida, for the Board’s prior approval
of action whereby Applicant would become a bank
holding company through the acquisition of 80 per
cent or more of the voting shares of each of three
banks in Florida: The Second National Bank of
North Miami, North Miami; Second National
Bank of North Miami Beach, North Miami
Beach; and The National Bank of St. Petersburg,
St. Petersburg.
As required by section 3(b) of the Act, the
Board gave written notice to the Comptroller
of the Currency of receipt of the application
and requested his views and recommendation.
The Acting Comptroller recommended approval
of the application.
Notice of receipt of the application was pub
lished in the Federal Register on March 13, 1971
(36 Federal Register 4917), which provided an
opportunity for interested persons to submit com
ments and views with respect to the proposed
transaction. A copy of the application was for
warded to the United States Department of
Justice for its consideration. The time for filing
comments and views has expired and all those
received have been considered by the Board.
It i s h e r e b y o r d e r e d , for the reasons set
forth in the Board’s Statement of this date, that
said application be and hereby is approved, pro
vided that the action so approved shall not be
[s e a l ]
St a t e m e n t
American Bancshares, Incorporated, North
Miami, Florida ( “Applicant”), has filed with the
Board, pursuant to section 3 (a )(1 ) of the Bank
Holding Company Act of 1956, an application
for approval of action to become a bank holding
company through the acquisition of 80 per cent
or more of the voting shares of The Second Na
tional Bank of North Miami, North Miami
( “North Miami Beach”); Second National Bank
of North Miami Beach, North Miami Beach
( “North Miami Beach Bank”); and The National
Bank of St. Petersburg, St. Petersburg ( “St.
Petersburg Bank”), all in Florida.
Views and recommendation of supervisory
authority. As required by section 3(b) of the
Act, the Board gave written notice of receipt of
the application to the Comptroller of the Currency
and requested his views and recommendation.
The Acting Comptroller recommended approval
of the application.
Statutory considerations. Section 3(c) of the
Act provides that the Board shall not approve an
acquisition that would result in a monopoly or
would be in furtherance of any combination or
conspiracy to monopolize or to attempt to mo
nopolize the business of banking in any part
of the United States. Nor may the Board approve
a proposed acquisition, the effect of which, in
any section of the country, may be substantially
to lessen competition, or to tend to create a
monopoly, or which in any other manner would
be in restraint of trade, unless the Board finds that
the anticompetitive effects of the proposed trans
522
action are clearly outweighed in the public interest
by the probable effect of the transaction in meeting
the convenience and needs of the communities to
be served. In each case, the Board is required to
take into consideration the financial and manage
rial resources and future prospects of the bank
holding company and the banks concerned, and
the convenience and needs of the communities to
be served.
Com petitive effects of the proposed transaction.
There are at the present time 19 registered bank
holding companies operating in the State of
Florida, which control 52 per cent of the deposits
held by all commercial banks in the State.1
Through the acquisition of N orth Miami Bank
($21 million deposits), North Miami Beach Bank
($3 million deposits), and St. Petersburg Bank
($28 million deposits), Applicant would become
the State’s nineteenth largest holding company,
with control of .4 per cent of the total State
deposits, and State-wide banking concentration
would not be significantly affected.
Two of the proposed subsidiary banks, North
Miami Bank and N orth Miami Beach Bank, are
located in the northeast portion of Dade County,
approximately seven miles apart, and serve
separate areas; whereas the other proposed sub
sidiary, St. Petersburg Bank, is located in Pinellas
County, approximately 250 miles from the Miami
area. N orth Miami Bank and North Miami Beach
Bank hold 8 and 10 per cent, respectively, of
total deposits in the areas they serve, rank as
the thirty-fifth and sixty-sixth largest of Dade
County’s 69 banks, and together control 0.9 per
cent of county deposits. St. Petersburg Bank
holds 41 per cent of deposits in the area it
serves, which encompasses the southwest portion
of St. Petersburg, but only 2.4 per cent of
Pinellas County deposits, and is the sixteenth
largest of the 34 banks in the county.
North Miami Bank has been affiliated with
St. Petersburg Bank since 1966 and has been
affiliated with N orth Miami Beach Bank since it
was organized as an affiliate in 1969. Common
shareholders own 69 per cent of North Miami
Bank, 61 per cent of N orth Miami Beach Bank,
and over 43 per cent of the St. Petersburg Bank,
and the same group would control approximately
56 per cent of Applicant’s stock upon consumma
1 Banking data are as of June 30, 1970, adjusted to
reflect holding company formations and acquisitions ap
proved by the Board through April 30, 1971.
FEDERAL RESERVE BULLETIN □ JUNE 1971
tion of the proposal. The three banks are operated
by the same executive management, and there
is an interlocking of directorships. There is no
significant present competition among the three
proposed subsidiary banks, and due to their
geographical separation, the number of inter
vening banks, Florida’s laws prohibiting branch
ing, and their common ownership it does not
appear that future competition is likely to develop.
Consummation of the proposed formation would
effect a reorganization of the three affiliated banks
under corporate control, and it does not appear
that it would adversely affect any competing
banks.
On the basis of the foregoing, the Board con
cludes that consummation of this proposal would
not result in a monopoly or be in furtherance of
any combination, conspiracy, or attempt to
monopolize the business of banking in any part
of the United States, and would not restrain trade,
substantially lessen competition, or tend to create
a monopoly in any part of the country.
Financial and managerial resources and future
prospects. Applicant was organized in November
1970 and has not engaged in any business activi
ties. Its financial condition and that of its pro
posed subsidiaries are generally satisfactory, the
managements of each are considered competent,
and the prospects of each are regarded as
favorable.
Considerations relating to the banking factors
are consistent with approval of the appplication.
Convenience and needs of the communities in
volved. The areas served by the two Miami banks
in Dade County and by St. Petersburg Bank in
Pinellas County have experienced substantial
growth during the last ten years. Whereas these
communities are well provided with banking
services, Applicant’s plans to broaden the range
of services offered at each subsidiary bank would
enable them to offer customers an additional
alternative for these services. Applicant’s planned
services would include trust services and invest
ment advice, payroll services for commercial and
business accounts, and travel services.
Considerations relating to the convenience and
needs of the areas involved are consistent with
and lend some weight in favor of approval of
the application.
Summary and conclusion . On the basis of all
the relevant facts contained in the record, and
in the light of the factors set forth in section 3(c)
LAW DEPARTMENT
523
of the Act, it is the Board’s judgment that the
proposed transaction would be in the public in
terest and that the application should be approved.
FIRST UNION, INCORPORATED,
ST. LOUIS, MISSOURI
In the m atter of the application of First Union,
Incorporated, St. Louis, Missouri, for approval of
the acquisition of 80 per cent or more of the
voting shares of The First National Bank of Cape
Girardeau, Cape Girardeau, Missouri.
O rder A
p p r o v in g
by
A
Bank H
c q u is it i o n
o l d in g
of
B a n k Stock
Com pany
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a )), an application by
First Union, Incorporated, St. Louis, Missouri
( “Applicant” ), a registered bank holding com
pany, for the Board’s prior approval of the
acquisition of 80 per cent or more of the voting
shares of The First National Bank of Cape
Girardeau, Cape Girardeau, Missouri ( “Bank” ).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Comptroller of the Currency and
requested his views and recommendation. The
Comptroller recommended approval of the
application.
Notice of receipt of the application was pub
lished in the Federal Register on March 18, 1971
(36 Federal Register 5259), providing an op
portunity for interested persons to submit com
ments and views with respect to the proposal.
A copy of the application was forwarded to the
United States Department of Justice for its con
sideration. Time for filing comments and views has
expired and all those received have been con
sidered by the Board.
The Board has considered the application in the
light of the factors set forth in section 3(c) of
the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the banks concerned, and the
convenience and needs of the communities to be
served. Upon such consideration, the Board finds
that:
Applicant, the third largest banking organiza
tion and third largest bank holding company in
Missouri, has six subsidiary banks with aggregate
deposits of $778 million, representing 7.6 per
cent of the total commercial bank deposits in the
State. (All banking data are as of June 30, 1970,
adjusted to reflect holding company acquisitions
and formations approved by the Board through
April 30, 1971.) Consummation of the proposal
herein would increase Applicant’s share of com
mercial bank deposits in the State to 7.8 per cent,
and Applicant would become the State’s second
largest banking organization and its second largest
bank holding company.
Bank ($24 million deposits), located in the
southeast portion of Cape Girardeau County,
125 miles south of St. Louis, is the second largest
of the nine banks in the Cape Girardeau banking
market, which is approximated by Cape Girardeau
County and the northern half of Scott County,
and holds 25.9 per cent of that market’s deposits.
It does not appear that Bank occupies a dominant
position in its market; Bank’s rate of deposit
growth during the last five years has been the
slowest of the nine banks in the market. Affilia
tion with Applicant should improve Bank’s ability
to compete more effectively. Applicant’s subsidiary
closest to Bank is located 90 miles northwest, and
neither it nor any other of Applicant’s subsidiaries
compete with Bank to a significant extent. More
over, in light of the distances separating Bank
from Applicant’s subsidiaries and Missouri’s re
strictive branching law, the development of such
competition appears unlikely. Consequently, it
does not appear that existing competition would
be eliminated, or significant potential competition
foreclosed, by consummation of Applicant’s pro
posal, or that there would be undue adverse effects
on any bank in the area involved.
Based upon the foregoing, the Board concludes
that consummation of the proposed acquisition
would not adversely affect competition in any
relevant area. The financial and managerial re
sources and future prospects of Applicant, its
subsidiaries, and Bank are regarded as consistent
with approval of the application. Although the
present banking needs of the Cape Girardeau
area appear to be adequately served by the exist
ing banking institutions, the area is expected to
experience continued economic growth. In order
to make Bank more responsive to the needs of the
area, Applicant plans to expand and to improve
many of Bank’s services, including its lending
524
FEDERAL RESERVE BULLETIN □ JUNE 1971
program. These considerations relating to the con
venience and needs of the area lend some weight
toward approval. It is the Board’s judgment that
consummation of the proposed acquisition would
be in the public interest, and that the application
should be approved.
I t is h e r e b y o r d e r e d , On the basis of the
Board’s findings summarized above, that said ap
plication be and hereby is approved, provided
that the action so approved shall not be con
summated (a) before the thirtieth calendar day
following the date of this Order or (b) later
than three months after the date of this Order,
unless such period shall be extended for good
cause by the Board, or by the Federal Reserve
Bank of St. Louis pursuant to delegated authority.
By order of the Board of Governors, May 13,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, and Brimmer.
Absent and not voting: Governors Daane and Sher
rill.
(Signed)
E liz a b e th
L.
C a r m ic h a e l,
Assistant Secretary.
recommendation. The Commissioner indicated
that he had no objection to approval of the
application.
Notice of receipt of the application was pub
lished in the Federal Register on March 13, 1971
(36 Federal Register 4917), providing an op
portunity for interested persons to submit com
ments and views with respect to the proposal. A
copy of the application was forwarded to the
United States Department of Justice for its con
sideration. Time for filing comments and views
has expired and all those received have been
considered by the Board.
I t i s h e r e b y o r d e r e d , for the reasons set
forth in the Board’s Statement of this date, that
said application be and hereby is approved, pro
vided that the action so approved shall not be
consummated (a) before the thirtieth calendar
day following the date of this Order or (b) later
than three months after the date of this Order
unless such time be extended for good cause by
the Board, or by the Federal Reserve Bank of
Kansas City pursuant to delegated authority.
By order of the Board of Governors, May 14,
1971.
[s e a l ]
COMMERCE BANCSHARES, INC.,
KANSAS CITY, MISSOURI
In the matter of the application of Com merce
Bancshares, Inc., Kansas C ity , Missouri, for ap
proval of acquisition of more than 80 per cent
of the voting shares of The Willard Bank , Willard,
Missouri.
Voting for this action: Chairman Burns and Gov
ernors Daane, Maisel, and Sherrill. Voting against
this action: Governor Robertson. Absent and not
voting: Governors Mitchell and Brimmer.
(Signed)
E liz a b e th
L.
C a r m ic h a e l,
Assistant Secretary.
[s e a l ]
St a te m en t
O rder A
p p r o v in g
by
A
c q u is it i o n
of
B a n k Stock
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a)), an application by
Commerce Bancshares, Inc., Kansas City, Mis
souri, a registered bank holding company, for the
Board’s prior approval of the acquisition of more
than 80 per cent of the voting shares of The
Willard Bank, Willard, Missouri.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Commissioner of Finance of the
State of Missouri, and requested his views and
Commerce Bancshares, Inc., Kansas City, Mis
souri ( “Applicant”), a registered bank holding
company, has applied to the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )),
for prior approval of the acquisition of more than
80 per cent of the voting shares of The Willard
Bank, Willard, Missouri ( “Bank” ).
Views and recommendations of supervisory
authority. As required by section 3(b) of the Act,
notice of receipt of the application was given to
the Commissioner of Finance of the State of
Missouri, and his views and recommendation
were requested. The Commissioner indicated that
he had no objection to approval of the application.
Statutory considerations. Section 3(c) of the
LAW DEPARTMENT
Act provides that the Board shall not approve an
acquisition that would result in a monopoly or
would be in furtherance of any combination or
conspiracy to monopolize or to attempt to mo
nopolize the business of banking in any part of
the United States. N or may the Board approve a
proposed acquisition the effect of which, in any
section of the country, may be substantially to
lessen competition, or to tend to create a mo
nopoly, or which in any other manner would be
in restraint of trade, unless the Board finds that
the anticompetitive effects of the proposed trans
action are clearly outweighed in the public interest
by the probable effect of the transaction in meet
ing the convenience and needs of the communities
to be served. In each case the Board is required
to take into consideration the financial and mana
gerial resources and future prospects of the bank
holding company and the banks concerned, and
the convenience and needs of the communities
to be served.
C om petitive effect of proposed transaction. The
ten largest banking organizations in Missouri,
seven of which are registered bank holding com
panies, control approximately 42 per cent of the
commercial bank deposits in the State.1 Applicant,
the second largest bank holding company and
the second largest banking organization in the
State, controls 17 subsidiary banks with aggregate
deposits of $792 million, representing 7.8 per
cent of the deposits held by all commercial banks
in the State. Upon acquisition of Bank ($1.5 mil
lion deposits), Applicant’s position in relation to
the State’s other banking organizations and hold
ing companies would remain unchanged and its
share of deposits in the State would be increased
only insignificantly.
Bank, located in Willard, ten miles northwest
of downtown Springfield, serves a 170 square
mile area of northwest Greene County. It is the
smaller of the two banks in its service area and,
with .5 per cent of the commercial bank deposits
in the county, is the tenth largest of the 12 Greene
County banks.
The city of Willard serves as a bedroom com
munity to Springfield, with approximately 90 per
cent of the Willard labor force commuting to
Springfield. The population of the city has grown
from 357 in 1960 to just over 1,000 in 1970, and
1 All banking data are as of June 30, 1970, adjusted to
reflect bank holding company formations and acquisitions
approved by the Board through March 31, 1971.
525
it is estimated that the 1980 population will be
close to 6,000.
Applicant’s subsidiary located closest to Bank,
the Citizens Bank of Springfield, also operates in
Greene County. With 26 per cent of the deposits,
Citizens Bank is the second largest bank in the
county. There is some negligible existing competi
tion between Bank and Citizens Bank which would
be eliminated by the consummation of this pro
posal. However, the size of Bank and the conserva
tive operating policies of its management appear
to preclude it from being a significant competitor.
An indication of this is the fact that Bank was
chartered in 1966 and since then its deposits have
grown slowly, even though the area has experi
enced substantial growth. In light of the cir
cumstances described above and the facts of
record, the Board views Applicant’s acquisition
of Bank as a somewhat unusual case.
On the basis of the foregoing, the Board con
cludes that consummation of the proposal would
not result in a monopoly or be in furtherance of
any combination, conspiracy or attempt to mo
nopolize the business of banking in any part of the
United States and would not restrain trade, sub
stantially lessen competition, or tend to create
a monopoly in any section of the country.
Financial and managerial resources and future
prospects. The financial condition of Applicant
is regarded as satisfactory, its management as
competent, and its prospects as favorable. The
same conclusions apply to Applicant’s subsidiaries.
Bank is in good financial condition and its
prospects are regarded as favorable. The present
management of Bank is regarded as satisfactory;
however, affiliation with Applicant should provide
Bank with greater management depth and should
assist Bank in meeting a management succession
problem.
These considerations are consistent with, and
provide some weight in favor of, approval of the
application.
Convenience and needs of the com munities in
volved. The major banking needs of the residents
of Bank’s service area appear to be adequately
served at the present time by existing institutions.
Applicant proposes to establish new services
at Bank, including estate planning and trust ser
vices, and to broaden Bank’s lending policies in
order to better meet the expanding needs of the
rapidly growing Willard area. These additional
services should facilitate the economic develop
ment of the area.
FEDERAL RESERVE BULLETIN □ JUNE 1971
526
Considerations relating to the convenience and
needs of the communities involved lend weight
in support of approval of the application.
Summary and conclusion. On the basis of all
the relevant facts contained in the record, and
in the light of the factors set forth in section 3(c)
of the Act, it is the Board’s judgment that the
proposed transaction would be in the public in
terest, and that the application should be ap
proved.
D
is s e n t in g
Sta tem ent
of
G o verno r R o bertso n
Although the majority has attempted to cushion
the precedential impact of its decision by char
acterizing its approval of the application as “a
somewhat unusual case,” I disagree with such a
characterization, and I would deny the applica
tion. Applicant’s acquisition of The Willard Bank
is clearly anticompetitive, and since there are no
offsetting benefits to the communities which
clearly outweigh those anticompetitive effects, the
mandate of the Bank Holding Company Act
requires denial of the application.
Commerce Bancshares, with its seventeen sub
sidiary banks, is already represented in every
major banking market in the State of Missouri.
The proposal herein represents an overt effort by
Commerce to solidify its position in one of those
markets, Greene County, by acquiring one of its
competitors, The Willard Bank. That one of
Applicant’s subsidiaries, Citizens Bank of Spring
field, and The Willard Bank are actual competitors
is not in dispute; yet the majority has apparently
determined that the elimination of competition
between the two banks is not so significant so as
to require denial of the application. To me, such a
determination ignores the commercial realities
which are present in this case.
Citizens Bank of Springfield and The Willard
Bank both operate in the same market. Ninety
per cent of W illard’s work force commutes to
Springfield for employment. There is substantial
deposit and loan overlap between the two banks.
In fact, the amount of loans and deposits which
Citizens Bank derives from The Willard Bank’s
service area greatly exceeds the total loans and
total deposits held by The Willard Bank. It is
apparent that the effects of the consummation of
Applicant’s proposal will be an elimination of this
meaningful competition between Citizens Bank
and The Willard Bank and the elimination of an
alternative source of banking services for these
residents of Willard who commute to Springfield.
In light of the large number of commuters, such
a prospect is clearly anticompetitive.
In addition to the above anticompetitive effects
of the proposal, the majority has chosen to ignore
the adverse effects of Applicant’s proposal on
potential competition. While admitting that the
Willard service area has enjoyed rapid population
expansion and that the prospects for future de
velopment are good, the majority has failed to
recognize that its action today will foreclose the
development of The Willard Bank as an effective
competitor in the Greene County banking market.
The Board’s action today appears to authorize
bank holding companies to intensify their control
of the banking markets in which they are already
represented simply by acquiring the smaller banks
in those markets. To me, such action is unwar
ranted and contrary to the purposes of the Bank
Holding Company Act.
The majority finds that the additional services
to be provided by The Willard Bank as an affiliate
of Commerce lend weight in favor of approval
of the application. However, the record does
not disclose that there is an actual need for such
additional services. Trust services are easily avail
able to the residents of Willard through the nearby
Springfield banks, and it appears that The Willard
Bank is fully capable of handling the loan demands
which arise in its service area. Consequently, since
there is no showing of benefits to the communities
involved which outweigh the anticompetitive ef
fects of the proposal herein, the application should
be denied.
SOUTHWEST BANCSHARES, INC.,
HOUSTON, TEXAS
In the matter of the application of Southwest
Bancshares, Inc., Houston, Texas, for approval
of acquisition of more than 51 per cent of the
voting shares of The First National Bank of Long
view, Longview, Texas.
O rder A
p p r o v in g
by
A
c q u is it i o n o f
B ank Stock
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a )), an application by
LAW DEPARTMENT
527
Southwest Bancshares, Inc., Houston, Texas, a
registered bank holding company, for the Board’s
prior approval of the acquisition of more than
51 per cent of the voting shares of The First
National Bank of Longview, Longview, Texas.
Applicant, through a wholly-owned subsidiary,
presently controls 22.1 per cent of the voting
shares of The First National Bank of Longview.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Comptroller of the Currency, and
requested his views and recommendation. The
Comptroller recommended approval of the ap
plication.
Notice of receipt of the application was pub
lished in the Federal Register on February 11,
1971 (36 Federal Register 2882), providing an op
portunity for interested persons to submit com
ments and views with respect to the proposed
transaction. A copy of the application was for
warded to the United States Department of Justice
for its consideration. Time for filing comments
and views has expired and all those received have
been considered by the Board.
I t i s h e r e b y o r d e r e d , for the reasons set forth
in the Board’s Statement of this date, that said
application be and hereby is approved, provided
that the action so approved shall not be consum
mated (a) before the thirtieth calendar day fol
lowing the date of this Order, or (b) later than
three months after the date of this Order, unless
such time shall be extended for good cause by
the Board, or by the Federal Reserve Bank of
Dallas pursuant to delegated authority, and pro
vided further that (c) Applicant divest itself of
its interest in voting shares of The Kilgore N a
tional Bank, Kilgore, Texas, within two years of
the date of this Order.
By order of the Board of Governors, May 14,
1971.
Voting for this action: Chairman Burns and Gov
ernors Daane, Maisel, and Sherrill. Concurring in
part and dissenting in part: Governor Robertson.
Absent and not voting: Governors Mitchell and
Brimmer.
(Signed)
E liz a b e th
L.
C a r m ic h a e l,
Assistant Secretary.
[se a l ]
pany, has applied to the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )),
for prior approval of the acquisition of more
than 51 per cent of the voting shares of The First
National Bank of Longview, Longview, Texas
( “Longview Bank” ). Applicant, through a whollyowned subsidiary, presently controls 22.1 per cent
of the voting shares of Longview Bank.
Views and recommendation of supervisory
authority. As required by section 3(b) of the Act,
the Board gave written notice of receipt of the
application to the Comptroller of the Currency,
and requested his views and recommendation. The
Comptroller recommended approval of the ap
plication.
Statutory considerations . Section 3(c) of the
Act provides that the Board shall not approve an
acquisition that would result in a monopoly or
would be in furtherance of any combination or
conspiracy to monopolize or to attempt to mo
nopolize the business of banking in any part of
the United States. N or may the Board approve
a proposed acquisition, the effect of which, in any
section of the country, may be substantially to
lessen competition, or to tend to create a monopoly, or which in any other manner would be
in restraint of trade, unless the Board finds that
the anticompetitive effects of the proposed trans
action are clearly outweighed in the public interest
by the probable effect of the transaction in meeting
the convenience and needs of the communities to
be served. In each case, the Board is required to
take into consideration the financial and mana
gerial resources and future prospects of the bank
holding company and the banks concerned, and
the convenience and needs of the communities
to be served.
Com petitive effects of the proposed transaction.
Applicant controls two banks with aggregate de
posits of approximately $602 million, representing
2.6 per cent of the total commercial bank deposits
in Texas, and is the fifth largest banking organiza
tion in the State.1 In addition, Applicant controls
more than 14 per cent (but less than 25 per cent)
of the voting shares of each of six other Texas
banks, including Longview Bank.
Longview Bank ($32 million of deposits)
is the second largest of five banks in Longview
Sta tem en t
Southwest Bancshares, Inc., Houston, Texas
( “Applicant” ), a registered bank holding com
1A11 banking data are as of June 30, 1970, and reflect
holding company acquisitions approved through Febru
ary 28, 1971.
528
and the second largest of the 15 banks in the
relevant market, which is defined as approximately
Gregg County and portions of Harrison and Rusk
Counties. Longview Bank controls 13.7 per cent
of the deposits in the market. Applicant’s two
subsidiaries are located in the Houston area, more
than 200 miles from Longview. Because of the
distance between Houston and Longview, the
number of banks in the intervening area, the pro
hibition against branch banking in Texas, and
other relevant considerations, Longview Bank is
not regarded as a competitor of either of Ap
plicant’s subsidiaries, nor is it likely to become
such in the future. There is no indication in the
record that the acquisition of Longview Bank by
Applicant would adversely affect other banks in
the relevant market.
Applicant, through a wholly-owned subsidiary,
controls 24.7 per cent of the voting shares of
The Kilgore National Bank, Kilgore, Texas ( “Kil
gore Bank” ), located approximately 12 miles
southwest of Longview Bank. Kilgore Bank com
petes in the same market with Longview Bank
and ranks as the seventh largest bank in the
market on the basis of its control of 5.9 per cent
of market deposits.
Analysis of Applicant’s relationships with Kil
gore Bank and examination into Applicant’s
actual or potential influence over the policies or
management of Kilgore Bank indicate that con
summation of the proposal would have anti
competitive effects. Applicant is the largest share
holder of Kilgore Bank. In addition, Applicant,
through its wholly-owned subsidiary, is party to
an agreement with other shareholders of Kilgore
Bank. The shareholders joining in the agreement
control more than 50 per cent of the voting shares
of Kilgore Bank and have provided in the agree
ment for all their shares to be voted as a unit.
Under the terms of the agreement, Applicant has
the right to be consulted before policy decisions
of Kilgore Bank are made, the right to be fully
informed about all matters concerning the bank,
the right of unrestricted access to all books and
records of the bank, and other significant rights.
The Board has not made a determination that
Applicant “controls” Kilgore Bank within the
meaning of the Bank Holding Company Act of
1956, and it considers such a determination un
necessary in the circumstances. The position that
Applicant enjoys with respect to Kilgore Bank
compels the conclusion that consummation of the
FEDERAL RESERVE BULLETIN □ JUNE 1971
proposal could result in a stifling of competition
between Longview Bank and Kilgore Bank.
The anticompetitive dangers raised by the pro
posal could be eliminated if Applicant divested
itself of its interest in Kilgore Bank. The Board’s
Order approving the proposal is conditioned upon
such divestiture. On that basis, and after careful
consideration of the entire record, the Board
concludes that consummation of the proposal
would not substantially lessen competition, tend
close significant potential competition. N or would
it result in a monopoly nor be in furtherance of
any combination, conspiracy, or attempt to mo
nopolize the business of banking in any area, and
would not substantially lessen competition, tend
to create a monopoly, nor restrain trade in any
section of the country.
Financial and managerial resources and future
prospects. The financial and managerial resources
and prospects of Applicant, its subsidiaries, and
Longview Bank are regarded as satisfactory.
Therefore, considerations regarding the banking
factors are consistent with approval of the ap
plication.
Convenience and needs of the communities in
volved. There is no indication in the record of
significant benefits to residents of the Houston area
that would flow from consummation of the pro
posal. Affiliation with Applicant would enable
Longview Bank to offer larger lending limits
through loan participations and to initiate, im
prove or expand other services, particularly in
ternational and trust services. Therefore, con
siderations regarding the convenience and needs
of the communities involved are consistent with
approval of the application but lend little weight
thereto.
Summary and conclusions. On the basis of all
the relevant facts contained in the record, and
in the light of the factors set forth in section 3(c)
of the Act, it is the Board’s judgment that the
proposed transaction would be in the public in
terest and that the application should be approved.
St a te m en t
C o n c u r r in g
in
of
G overno r R o be rt so n
P art
and
D
is s e n t in g
in
P art
I concur with the other members of the Board
voting on this action that this application war
rants approval provided that Applicant divest it
self of its interest in Kilgore Bank. However, I do
not agree that Applicant should be given up to two
LAW DEPARTMENT
years to effect the divestiture as provided in the
Board’s Order.
The Board finds that Applicant’s acquisition
of a controlling interest in Longview Bank while
it continues to retain a substantial interest in
Kilgore Bank would have an adverse effect on
competition. In such circumstances, I believe that
divestiture should be required as a condition
precedent to consummation of the proposal. Adop
tion of a policy of allowing divestiture of a com
peting bank within a two-year period (or other
extended period of time) indicates a willingness
of the Board to disregard anticompetitive effects
of a transaction for a significant period of time.
Whenever the Board is considering an appro
priate date for divestiture, it must, of course,
weigh the potential hardship to an Applicant
caused by divestiture at an early date against the
risks of adverse effects on competition. I believe
that, in the present case, concern about the com
petitive factors should prevail. By virtue of an
agreement with other shareholders of Kilgore
Bank, Applicant enjoys unrestricted access to in
side information concerning Kilgore Bank and,
in addition, has the voting power, as member of
the control group, to take maximum advantage
of that information. By gaining control of Long
view Bank, Applicant would be able to utilize its
power in a manner detrimental to competition
between Kilgore Bank and Longview Bank. The
effects of such an anticompetitive situation could
linger well beyond two years.
In my judgment, the anticompetitive considera
tions are not outweighed by any other con
siderations. In view of our conclusion that
considerations regarding the convenience and
needs of the communities involved lend little
weight to approval of the application, the Long
view community will not suffer if this transaction
is not consummated at the earliest possible date.
N or is it likely that Applicant would suffer
significant hardship if we required it to divest
itself of its interest in Kilgore Bank prior to
consummation of the proposal. The restricted
nature of Applicant’s Kilgore Bank stock, en
cumbered as it is with the shareholder agreement,
means that only a limited market for the stock
exists now and that the situation would be un
affected in the next two years. Therefore, I do
not see what the two-year period is intended to
accomplish. If there is a possible economic loss
that Applicant would suffer by a requirement of
529
divestiture prior to consummation of the proposal,
I consider it not significant relative to the serious
and likely adverse effects on competition that
could result if we permit Applicant to own
substantial interests in two competing banks for
two years.
For the reasons stated above, I would require
Applicant to divest itself of its interest in Kilgore
Bank prior to consummation of the proposal.
BARNETT BANKS OF FLORIDA, INC.,
JACKSONVILLE, FLORIDA
In the m atter of the application of Barnett
Banks of Florida, Inc., Jacksonville, Florida, for
approval of the acquisition of 80 per cent or more
of the voting shares of H ollyw ood Bank and Trust
Company, Hollywood, Florida.
O rder A
p p r o v in g
by
A
Bank H
c q u is it i o n
o l d in g
of
B ank Stock
C o m pany
There has come before the Board of Governors
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a )), an application by
Barnett Banks of Florida, Inc., Jacksonville,
Florida ( “Applicant”), a registered bank holding
company, for the Board’s prior approval of the
acquisition of 80 per cent or more of the voting
shares of Hollywood Bank and Trust Company,
Hollywood, Florida (“Hollywood Bank”).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Commissioner of Banking of the
State of Florida, and requested his views and
recommendation. The Commissioner recom
mended approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on March 30, 1971
(36 Federal Register 5877), providing an op
portunity for interested persons to submit com
ments and views with respect to the proposed
transaction. A copy of the application was for
warded to the United States Department of Justice
for its consideration. The time for filing comments
and views has expired and all those received have
been considered by the Board.
The Board has considered the application in the
light of the factors set forth in section 3(c) of the
Act, including the effect of the proposed acquisi
tion on competition, the financial and managerial
530
resources of the Applicant and the banks con
cerned, and the convenience and needs of the com
munities to be served and finds that:
Applicant presently controls 25 banks which
hold deposits of $639 million, representing 5.2
per cent of total deposits held by Florida’s com
mercial banks, and is the State’s third largest
banking organization. (All banking data are as of
June 30, 1970 and reflect holding company forma
tions and acquisitions approved by the Board
through April 30, 1971.) Applicant’s acquisition
of Hollywood Bank, with deposits of $58.8 mil
lion, would increase its share of deposits in the
State by a relatively slight amount.
Hollywood Bank operates one office, located
in the city of Hollywood, Broward County,
Florida, and primarily serves the Hollywood
metropolitan area (southern portion of Broward
County extending southward to the Dade County
line). It is the third largest of seven banking
organizations in the Hollywood area with 17.9
per cent of area deposits, and the sixth largest
of 38 banks in the county with 5.5 per cent of
total county deposits. [Four bank holding com
panies presently control fifteen of these 38 banks
amounting to 48.9 per cent of the county’s total
deposits.] The two largest banking organizations
in Hollywood control 21.8 and 19.5 per cent of
that area’s deposits respectively.
Applicant’s nearest existing subsidiary to Bank
is approximately 155 miles away, and Applicant’s
nearest approved subsidiary is located twenty miles
away in the city of Miami and is separated from
Bank by numerous intervening banks. There is no
significant competition between Bank and Ap
plicant’s subsidiaries and, based on the facts of
record, the potential for any meaningful competi
tion between them appears remote. Based on the
foregoing, the Board concludes that consummation
of the proposal would not have a significantly
adverse effect on competition in any relevant area
and may have a procompetitive impact in the
Hollywood area since Hollywood Bank has not
been a particularly aggressive institution.
Considerations relating to financial and mana
gerial resources and prospects as they relate to
Applicant, its subsidiaries and Bank, are regarded
as consistent with approval of the application.
Affiliation with Applicant will enable Hollywood
Bank to strengthen its management depth by
drawing from Applicant’s pool of management
resources for successor management. The Holly
wood area continues to experience an extremely
FEDERAL RESERVE BULLETIN □ JUNE 1971
high rate of growth. While it appears that the
banking needs of the area are being adequately
served, Applicant proposes to institute more ag
gressive loan policies, and improve trust and other
banking services to more effectively meet the
needs of the community. It is the Board’s judg
ment that consummation of the proposed acquisi
tion would be in the public interest and that
the application should be approved.
I t i s h e r e b y o r d e r e d , for the reasons set
forth in the findings summarized above, that said
application be and hereby is approved, provided
that the action so approved shall not be consum
mated (a) before the thirtieth calendar day fol
lowing the date of this Order or (b) later than
three months after the date of this Order, unless
such time be extended for good cause by the
Board, or by the Federal Reserve Bank of Atlanta
pursuant to delegated authority.
By order of the Board of Governors, May 18,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Brimmer, and
Sherrill. Absent and not voting: Governor Maisel.
(Signed)
K en n eth
A.
K enyon,
D eputy Secretary.
[s e a l ]
VALLEY BANCORPORATION,
APPLETON, WISCONSIN
In the matter of the application of Valley
Bancorporation , A ppleton, Wisconsin, for ap
proval of acquisition of 80 per cent or more of
the voting shares of Badger State Bank, Denmark,
Wisconsin.
O rder A
p p r o v in g
by
A
Bank H
c q u is it i o n
o l d in g
of
B ank Stock
C o m pany
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a )), an application by
Valley Bancorporation, Appleton, Wisconsin
( “Applicant” ), a registered bank holding com
pany, for the Board’s prior approval of the
acquisition of 80 per cent or more of the voting
shares of Badger State Bank, Denmark, Wisconsin
( “Bank” ).
LAW DEPARTMENT
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Commissioner of Banking of the
State of Wisconsin and requested his views and
recommendation. The Commissioner offered no
objection to approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 6, 1971
(36 Federal Register 6543), providing an op
portunity for interested persons to submit com
ments and views with respect to the proposal. A
copy of the application was forwarded to the
United States Department of Justice for its con
sideration. Time for filing comments and views
has expired and all those received have been con
sidered by the Board.
The Board has considered the application in
the light of the factors set forth in section 3(c)
of the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the banks concerned, and the con
venience and needs of the communities to be
served, and finds th a t:
Applicant, the seventh largest registered bank
holding company and banking organization in
Wisconsin, controls ten banks holding aggregate
deposits of $123 million which represent 1.4 per
cent of commercial bank deposits in the State of
Wisconsin. (All banking data are as of June 30,
1970, and reflect bank holding company acquisi
tions approved by the Board to date.) Upon
acquisition of Bank ($7.5 million in deposits),
Applicant’s control of deposits in the State of
Wisconsin would increase to 1.5 per cent.
Bank, located in the southeast section of Brown
County, is the eleventh largest of 16 banking or
ganizations in the Green Bay SMSA, holding 2.3
per cent of deposits in that area. Applicant’s
closest subsidiary is Reedsville State Bank which
is located in Reedsville, Manitowoc County, 22
miles southwest of Denmark. There is no present
competition between Bank and that bank or any
other of Applicant’s subsidiaries. In light of the
low population of the area, and the fact that
Wisconsin law prohibits branching into or within
three miles of communities already having a bank
or branch, the possibility of such competition
arising in the future appears remote. No existing
competition would be eliminated by consumma
tion of the proposal, nor would significant po
tential competition be foreclosed. Neither would
531
there be any adverse effects on any bank in the
area.
There is no evidence that significant banking
needs of the community are going unserved; how
ever, affiliation with Applicant would allow Bank
to provide additional services such as data pro
cessing and trust services. Considerations relating
to the convenience and needs of the communities
to be served are thus consistent with approval.
The prospects and financial condition of Bank
are regarded as satisfactory. Bank’s management
is nearing retirement age and affiliation with
Applicant would facilitate management succession;
this factor lends some weight toward approval. It
is the Board’s judgment that consummation of the
proposed acquisition would be in the public inter
est, and that the application should be approved.
I t is h e r e b y o r d e r e d , for the reasons set forth
above, that said application be and hereby is
approved, provided that the acquisition so ap
proved shall not be consummated (a) before the
thirtieth calendar day following the date of this
Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Chicago pursuant to delegated
authority.
By order of the Board of Governors, May 20,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, Brimmer,
and Sherrill.
(Signed)
K e n n e th
A.
K enyon,
D eputy Secretary.
[s e a l ]
FIRST UNION, INCORPORATED,
ST. LOUIS, MISSOURI
In the m atter of the application of First Union,
Incorporated, St. Louis, Missouri, for approval of
acquisition of 80 per cent or more of the voting
shares of The First N ational Bank of West Plains,
West Plains, Missouri.
O rder A
p p r o v in g
by
A
Bank H
c q u is it i o n
o l d in g
of
B a n k Stock
C om pany
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a)), an application by
FEDERAL RESERVE BULLETIN □ JUNE 1971
532
First Union, Incorporated, St. Louis, Missouri, a
registered bank holding company, for the Board’s
prior approval of the acquisition of 80 per cent or
more of the voting shares of The First National
Bank of West Plains, West Plains, Missouri.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Comptroller of the Currency and
requested his views and recommendation. The
Comptroller recommended approval of the appli
cation.
Notice of receipt of the application was pub
lished in the Federal Register on February 4, 1971
(36 Federal Register 2429), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy of
the application was forwarded to the United States
Department of Justice for its consideration. Time
for filing comments and views has expired and
all those received have been considered by the
Board.
I t is h e r e b y o r d e r e d , for the reasons set forth
in the Board’s Statement of this date, that said
application be and hereby is approved, provided
that the action so approved shall not be consum
mated (a) before the thirtieth calendar day fol
lowing the date of this Order or (b) later than
three months after the date of this Order unless
such time be extended for good cause by the
Board, or by the Federal Reserve Bank of St.
Louis pursuant to delegated authority.
By order of the Board of Governors, May 20,
1971.
Voting for this action: Chairman Burns and Gov
ernors Maisel, Brimmer, and Sherrill. Absent and
not voting: Governors Robertson, Mitchell, and
Daane.
(Signed) K e n n e t h A. K e n y o n ,
D eputy Secretary.
[s e a l ]
St a te m en t
First Union, Incorporated, St. Louis, Missouri
( “Applicant”), a registered bank holding com
pany, has applied to the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )),
for prior approval of the acquisition of 80 per
cent or more of the voting shares of The First
National Bank of West Plains, West Plains, Mis
souri ( “Bank” ).
Views and recommendation of supervisory au
thority. As required by section 3(b) of the Act,
the Board gave written notice of receipt of the
application to the Comptroller of the Currency
and requested his views and recommendation. The
Comptroller recommended approval of the appli
cation.
Statutory considerations. Section 3(c) of the
Act provides that the Board shall not approve an
acquisition that would result in a monopoly or
would be in furtherance of any combination or
conspiracy to monopolize or to attempt to mo
nopolize the business of banking in any part of the
United States. Nor may the Board approve a pro
posed acquisition the effect of which, in any sec
tion of the country, may be substantially to lessen
competition, or to tend to create a monopoly, or
which in any other manner would be in restraint of
trade, unless the Board finds that the anticompeti
tive effects of the proposed transaction are clearly
outweighed in the public interest by the probable
effect of the transaction in meeting the convenience
and needs of the communities to be served. In
each case the Board is required to take into con
sideration the financial and managerial resources
and future prospects of the bank holding company
and the banks concerned, and the convenience and
needs of the communities to be served.
Com petitive effect of the proposed transaction.
Applicant is the second largest banking organiza
tion and second largest bank holding company in
Missouri by virtue of its control of seven banks
with aggregate deposits of $802 million, represent
ing 7.8 per cent of the total commercial bank
deposits in the State.1 As a result of this proposal,
Applicant’s share of deposits in the State would
be increased to 8.1 per cent; however, Applicant
would still rank second in relation to the State’s
other banking organizations and bank holding
companies.
West Plains, the county seat of Howell County,
is a rural community of about 7,000 located in
south-central Missouri, approximately 210 miles
southwest of St. Louis. The economy of Howell
County has experienced only insignificant growth,
and its population has increased only about 7 per
cent during the last decade. The same depressed
condition exists in the surrounding six county area,
and the prospects for the entire area are, at best,
only fair.
XA11 banking data are as of June 30, 1970, adjusted to
reflect holding company acquisitions and formations ap
proved by the Board to date.
LAW DEPARTMENT
Bank ($28 million deposits), the largest of two
banks in West Plains and the largest of four banks
in Howell County, holds 60.9 per cent of the total
commercial bank deposits in the county. Even
though Bank is the largest bank in the county,
the other Howell County banks appear to be effec
tive competitors, especially the other West Plains
bank which has new and aggressive management,
and should not be adversely affected by Appli
cant’s acquisition of Bank.
Applicant’s subsidiary closest to Bank is located
over 100 miles away. None of Applicant’s sub
sidiaries derives any significant amount of business
from Bank’s service area. N or does Bank compete
in any of those areas served by Applicant’s sub
sidiaries. Consequently, it does not appear that
any existing competition would be eliminated by
the consummation of this proposal.
In connection with its review of the application,
the Board has considered a view expressed by the
Department of Justice that the effect of the trans
action on competition would be “significantly
adverse.” The principal arguments of the Depart
ment are that the acquisition would entrench
Bank’s dominant position and raise barriers to
entry, and that alternative methods of entry into
Howell County are open to Applicant. The De
partment believes it preferable that Applicant enter
the area by either establishing a new bank or by
acquiring one of the smaller banks in the county.
The acquisition of a significant competitor by a
large institution does raise, to a limited extent,
barriers to entry into an area. However, the more
significant objection raised by the Department
relates to alternative methods of entry into the
area. Based on the facts of record, Applicant’s
entry into Howell County through alternative
means does not appear to be feasible.
The population-to-bank ratio in Howell County
is approximately 5,900 per bank, considerably
below the State average of about 7,000 per bank.
Additionally, the high level of unemployment and
the low per capita income are indicative of the
depressed nature of the area’s economy. The
combination of these factors makes de novo entry
most unattractive. Of course, it is conceivable
that Applicant could attempt to acquire one of the
smaller banks in the county. Applicant, however,
indicates that the other West Plains bank does not
appear to be available for acquisition because of
a recent change in ownership, and that Applicant
would not attempt to acquire either of the two
Howell County banks, which are not located in
533
West Plains, the trade center for the region. More
over, the area’s economy appears to require a
larger bank with sufficient resources to assist in the
development of the area and only Bank is in a
position to meet this need. In summary, the Board
does not consider the possible alternatives de
scribed above to be so clearly preferable from a
competitive standpoint or so likely to occur as to
require the denial of a proposal which should
provide immediate benefits to Howell County and
the surrounding area.
In light of the above circumstances, the Board
concludes that the consummation of the proposed
transaction would not result in a monopoly, nor
be in furtherance of any combination, conspiracy,
or attempt to monopolize the business of banking
in any part of the United States, and would not
restrain trade, substantially lessen competition or
tend to create a monopoly in any section of the
country.
Financial and managerial resources and future
prospects. The financial condition and manage
ment of Applicant and its subsidiaries are regarded
as satisfactory, and their prospects appear favor
able.
The financial condition of Bank is regarded as
satisfactory. The present management of Bank is
considered competent, but Bank lacks manage
ment depth, and affiliation with Applicant should
strengthen the present management and assure
Bank of competent management succession.
These considerations are consistent with, and
lend some weight in favor of, approval of the
application.
Convenience and needs of the communities in
volved. The major banking needs of the communi
ties served by Applicant’s present subsidiaries
would not be affected by consummation of the
present proposal.
Although the present banking needs of Howell
County appear to be met by the existing banking
institutions, the introduction of the State’s second
largest banking organization, with its full range
of banking services, could provide some stimulus
to the depressed economy of the area. Specifically,
Applicant intends to assist Bank in expanding and
improving its lending program in the areas of
housing, agriculture, and industrial development.
Applicant also proposes to establish data pro
cessing and trust services. The addition and ex
pansion of these services should enhance Bank’s
capabilities in assisting in the development of the
area.
534
FEDERAL RESERVE BULLETIN □ JUNE 1971
These considerations relating to the convenience
and needs of the communities involved lend
strong weight in support of approval of the
application.
Summary and conclusion. On the basis of all
the relevant facts contained in the record, and in
the light of the factors set forth in section 3(c)
of the Act, it is the Board’s judgment that the
proposed transaction would be in the public in
terest, and that the application should be approved.
THE TORONTO-DOMINION BANK,
TORONTO, ONTARIO, CANADA
In the m atter of the application of The Toronto-Dominion Bank , Toronto , Ontario, Canada ,
for approval to become a bank holding company
through the acquisition of 100 per cent ( less di
rectors' qualifying shares) of the voting shares of
Toronto Dominion Bank of California , San Fran
cisco , California , a proposed new bank.
O rder A
p p r o v in g
B ank H
A
c t io n
o l d in g
to
B ecom e
a
Co m pany
There has come before the Board of Governors,
pursuant to section 3 (a )(1 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a)(1 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 222.3 ( a ) ), the application of The
Toronto-Dominion Bank, Toronto, Ontario,
Canada ( “Applicant”), for the Board’s prior ap
proval to become a bank holding company through
the acquisition of 100 per cent (less directors’
qualifying shares) of the voting shares of Toronto
Dominion Bank of California, San Francisco,
California ( “Bank” ), a proposed new bank.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the California Superintendent of Banks
and requested his views and recommendation. The
Superintendent recommended approval of the ap
plication.
Notice of receipt of the application was pub
lished in the Federal Register on March 25, 1971
(36 Federal Register 5641), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy of
the application was forwarded to the United States
Department of Justice for its consideration. Time
for filing comments and views has expired and
all those received have been considered by the
Board.
The Board has considered the application in the
light of the factors set forth in section 3(c) of
the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the Bank, and the convenience and
needs of the community to be served, and finds
that:
Applicant is a Canadian commercial bank with
$5 billion in deposits and 769 banking offices
located throughout Canada. In the United States,
Applicant has agencies in New York City and
San Francisco and representative offices in Chi
cago, Los Angeles and Houston. Additionally, it
owns a trust company in New York City which
does not accept demand deposits.
Within the immediate area of Bank are head
offices of three of the five largest banks in Cali
fornia as well as branch offices of the remaining
two largest banks. Based on the record before
it, the Board concludes that Bank’s entry into this
area will have no adverse effects on existing or
potential competition. Rather, the addition of
Bank will provide increased banking facilities and
competition.
The financial and managerial resources and
prospects of Applicant and Bank are satisfactory
and consistent with approval of the application.
Considerations relating to the convenience and
needs of the community to be served lend some
weight toward approval, due to the addition to the
area of a new bank and another international
banking link to Canada.
I t i s h e r e b y o r d e r e d , for the reasons set
forth in the findings summarized above, that said
application be and hereby is approved, provided
that the acquisition so approved shall not be con
summated (a) before the thirtieth calendar day
following the date of this Order, or (b) later than
three months after the date of this Order, and
provided further that (c) Toronto Dominion Bank
of California shall be open for business not later
than six months after the date of this Order. The
periods described in (b) and (c) hereof may be
extended for good cause by the Board or by the
Federal Reserve Bank of San Francisco pursuant
to delegated authority.
By order of the Board of Governors, May 20,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, Brimmer,
and Sherrill.
(Signed) K e n n e t h A. K e n y o n ,
[se a l]
D eputy Secretary.
535
LAW DEPARTMENT
N JN BANCORPORATION,
TRENTON, NEW JERSEY
In the m atter of the application of N IN Ban
corporation, Trenton, N ew Jersey, for approval of
action to become a bank holding company through
the acquisition of 100 per cent ( less directors'
qualifying shares) of the voting shares of N ew
Jersey National Bank, Trenton, N ew Jersey.
O rder A
a
p p r o v in g
B ank H
A
c t io n t o
o l d in g
B ecom e
C o m pany
There has come before the Board of Governors,
pursuant to section 3 (a )(1 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )),
and section 222.3(a) of Federal Reserve Regulation
Y (12 CFR 2 2 2 .3 (a )), an application by N JN
Bancorporation, Trenton, New Jersey (“Appli
cant” ), for the Board’s prior approval of action
whereby Applicant would become a bank holding
company through the acquisition of 100 per cent
(less directors’ qualifying shares) of the voting
shares of New Jersey National Bank, Trenton,
New Jersey ( “Bank” ).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Comptroller of the Currency and
requested his views and recommendation. The
Comptroller offered no objection to approval of
the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 17, 1971
(36 Federal Register 7329), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy
of the application was forwarded to the United
States Department of Justice for its consideration.
Time for filing comments and views has expired
and all those received have been considered by
the Board.
The Board has considered the application in
the light of the factors set forth in section 3(c) of
the Act, including the effect of the proposed acqui
sition on competition, the financial and managerial
resources and future prospects of the Applicant
and the banks concerned, and the convenience and
needs of the communities to be served, and finds
that:
Applicant is a nonoperating corporation formed
for the purpose of acquiring Bank (deposits
$467.1 million). As it has no present operations
or subsidiaries, consummation of the proposal
would eliminate neither existing nor potential
competition. Neither does it appear that there
would be adverse effects on any bank in the area
involved.
The financial and managerial resources and
prospects of Bank are satisfactory, as would be
those of Applicant upon consummation of the pro
posal, and are consistent with approval. Consum
mation of the proposal would have no immediate
effect on the convenience and needs of the commu
nity involved. Considerations under these factors
are consistent with approval. It is the Board’s
judgment that the proposed transaction would be
in the public interest, and that the application
should be approved.
I t i s h e r e b y o r d e r e d , for the reasons set forth
above, that said application be and hereby is
approved, provided that the acquisition so ap
proved shall not be consummated (a) before the
thirtieth calendar day following the date of this
Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Philadelphia pursuant to dele
gated authority.
By order of the Board of Governors, May 20,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, Brimmer,
and Sherrill.
(Signed)
K en n eth A. K en yon ,
D eputy Secretary .
[s e a l ]
FIRST FLORIDA BANCORPORATION,
TAMPA, FLORIDA
In the matter of the application of First Florida
Bancorporation, Tampa, Florida, for approval of
the acquisition of 80 per cent or more of the
voting shares of The State Bank of N orth Jackson
ville, Jacksonville, Florida, a proposed new bank.
O rder A
p p r o v in g
by
A
B ank H
c q u is it i o n
o l d in g
of
B a nk Stock
Co m pany
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a)(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a)), an application by
536
First Florida Bancorporation, Tampa, Florida
( “Applicant” ), a registered bank holding com
pany, for the Board’s prior approval of the acqui
sition of 80 per cent or more of the voting shares
of The State Bank of North Jacksonville, Jackson
ville, Florida ( “Bank” ), a proposed new bank.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Florida State Commissioner of
Banking and requested his views and recommenda
tion. The Commissioner recommended approval
of the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 8, 1971
(36 Federal Register 6774), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy
of the application was forwarded to the United
States Department of Justice for its consideration.
Time for filing comments and views has expired
and all those received have been considered by the
Board.
The Board has considered the application in the
light of the factors set forth in section 3(c) of the
Act, including the effect of the proposed acquisi
tion on competition, the financial and managerial
resources and future prospects of the Applicant
and the banks concerned, and the convenience and
needs of the communities to be served. Upon
such consideration, the Board finds that:
Applicant controls 19 banks with aggregate de
posits of approximately $366 million, represent
ing 3.0 per cent of the total commercial bank
deposits in the State, and is the sixth largest bank
ing organization in Florida. (All banking data are
as of June 30, 1970, and reflect holding company
acquisitions approved through April 30, 1971.)
Since Bank is a proposed new bank, no existing
competition would be eliminated nor would con
centration be increased in any relevant area.
Bank will be located in a growing residential
area (est. population: 85,000) north of down
town Jacksonville. Its proposed site is in a large
shopping center and across the street from another
shopping complex. Applicant presently controls
two banks in Jacksonville which are 6 and 12
miles from Bank and across the river.
Consummation of the proposal would not give
Applicant a dominant position in the market
which is defined as approximating Duval County.
Three of the four largest bank holding companies
in the State are headquartered in Jacksonville and
FEDERAL RESERVE BULLETIN □ JUNE 1971
control 15 of the 29 banks in the market. These
three companies control 77.6 per cent of market
deposits, while Applicant controls only 4.3 per
cent. In addition to Applicant and these three
companies, the relevant market is comprised of
five bank holding companies and banking groups,
and four independent banks. Therefore, it appears
that the effect of the proposal will be to enable
Applicant to compete more effectively with the
larger banking organizations in the relevant area.
Nor does it appear that the opening of Bank by
Applicant would have an undue adverse effect on
any competing bank. The bank nearest to the
proposed site of Bank is located 2.1 miles away
and is a subsidiary of the largest bank holding
company in the State. The next closest bank is
located 3.3 miles from the proposed site and is
a subsidiary of the fourth largest bank holding
company in the State.
On the basis of the record before it, the Board
concludes that consummation of the proposed
acquisition would not adversely affect competition
in any relevant area. The financial condition,
management, and prospects of Applicant and its
subsidiary banks are regarded as generally satis
factory. Bank has no operating financial history.
It will open with satisfactory capital, and it will
be able to draw on Applicant for its management.
Its prospects are satisfactory. The banking factors
are consistent with approval. Bank’s location in
a major shopping center which presently has no
banking facilities should provide a convenience
to residents of the area; and the wide range of
services that Bank proposes to offer should meet
the banking needs of the customers. Therefore,
considerations relating to the convenience and
needs of the communities to be served lend some
weight in support of approval of the application.
It is the Board’s judgment that consummation of
the proposed acquisition would be in the public
interest, and the application should be approved.
I t i s h e r e b y o r d e r e d , for the reasons set
forth in the findings summarized above, that said
application be and hereby is approved, provided
that the action so approved shall not be consum
mated (a) before the thirtieth calendar day follow
ing the date of this Order or (b) later than three
months after the date of this Order, and provided
further that (c) The State Bank of North Jackson
ville shall be open for business not later than six
months after the date of this Order. The periods
described in (b) and (c) hereof may be extended
for good cause by the Board, or by the Federal
537
LAW DEPARTMENT
Reserve Bank of Atlanta pursuant to delegated
authority.
By order of the Board of Governors, May 21,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, and Brimmer.
Absent and not voting: Governors Daane and Sher
rill.
(Signed)
K en n eth
A.
K enyon,
D eputy Secretary .
[s e a l ]
FIRST FLORIDA BANCORPORATION,
TAMPA, FLORIDA
In the m atter of the application of First Florida
Bancorporation, Tampa , Florida, for approval of
acquisition of 90 per cent or more of the voting
shares of Peoples Bank of Crescent C ity, Crescent
City, Florida.
O rder A
p p r o v in g
by
A
B ank H
c q u is it i o n
o l d in g
of
B a n k Stock
C om pany
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(a)(3)
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a)), an application by
First Florida Bancorporation, Tampa, Florida
( “Applicant” ), a registered bank holding com
pany, for the Board’s prior approval of the ac
quisition of 90 per cent or more of the voting
shares of Peoples Bank of Crescent City, Crescent
City, Florida ( “Peoples Bank” ).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the applica
tion to the Commissioner of Banking for the
State of Florida, and requested his views and
recommendation. The Commissioner recom
mended approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 8, 1971
(36 Federal Register 6773), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposed transac
tion. A copy of the application was forwarded
to the United States Department of Justice for its
consideration. The time for filing comments and
views has expired and all those received have been
considered by the Board.
The Board has considered the application in
the light of the factors set forth in section 3(c)
of the Act, including the effect of the proposed
acquisition on competition, the financial and m an
agerial resources and prospects of the Applicant
and the banks concerned, and the convenience
and needs of the communities to be served and
finds that:
Applicant presently controls 19 banks with
aggregate deposits of approximately $366 million,
representing 3.0 per cent of all deposits of com
mercial banks in Florida. (All banking data are
as of June 30, 1970, adjusted to reflect holding
company acquisitions approved by the Board
through April 30, 1971.) Upon acquisition of
Peoples Bank ($7 million deposits), Applicant
would increase its share of Statewide deposits
by only 0.1 percentage points, leaving unchanged
its present ranking as the sixth largest banking
organization in Florida.
Peoples Bank is the only bank located in
Crescent City. Its principal competitors are the
two banks in Palatka, 25 miles north of Crescent
City, and the three banks in Deland, 30 miles
south of Crescent City. Four of these five competi
tors are subsidiaries of holding companies. On the
basis of deposits, Peoples Bank ranks fifth among
the six banking organizations in the market and
controls only 7.8 per cent of market deposits.
It appears that there is no significant existing
competition between Peoples Bank and any of
Applicant’s present subsidiary banks, of which the
nearest to Peoples Bank is 50 miles south in
Sanford. Nor would significant competition be
likely to develop in the future, principally because
of the distances involved, the number of banks
located in each of the intervening areas, and the
prohibition against branch banking in Florida. The
market area of Peoples Bank is largely rural and
growing slowly, and there appears to be little
likelihood that Applicant would establish a de
novo office there. Thus, it appears that consumma
tion of this proposal would not eliminate signifi
cant existing competition nor foreclose potential
competition. Affiliation with Applicant may en
hance the ability of Peoples Bank to compete with
the larger banks in its area.
On the basis of the record before it, the Board
concludes that consummation of the proposed
acquisition would not have an adverse effect on
competition in any relevant market. The financial
condition, management and prospects of Appli
cant, its subsidiaries, and Peoples Bank are re
garded as generally satisfactory. Applicant states
FEDERAL RESERVE BULLETIN □ JUNE 1971
538
that the specialized services of its subsidiaries
would be made available to customers of Peoples
Bank as the need arises. Thus, considerations
concerning community convenience and needs are
consistent with approval of the application. It is
the Board’s judgment that the proposed transac
tion would be in the public interest, and that the
application should be approved.
I t is h e r e b y o r d e r e d , for the reasons in the
findings summarized above, that said application
be and hereby is approved, provided that the
acquisition so approved shall not be consum
mated (a) before the thirtieth calendar day follow
ing the date of this Order or (b) later than three
months after the date of this Order, unless such
period is extended for good cause by the Board,
or by the Federal Reserve Bank of Atlanta pur
suant to delegated authority.
By order of the Board of Governors, May 21,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, and Brimmer.
Absent and not voting: Governors Daane and Sher
rill,
(Signed)
K en n eth
A.
K enyon,
D eputy Secretary.
[s e a l ]
MISSOURI BANCSHARES, INC.,
KANSAS CITY, MISSOURI
In the matter of the application of Missouri
Bancshares, Inc., Kansas City, Missouri, for ap
proval of acquisition of 83 per cent or more of
the voting shares of The Arnold Savings Bank,
Arnold, Missouri.
O rder A
p p r o v in g
by
A
c q u is it i o n
of
B a n k Stock
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a)(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 222.3(a), an application by
Missouri Bancshares, Inc., Kansas City, Missouri
( “Applicant” ), a registered bank holding com
pany, for the Board’s prior approval of the
acquisition of 83 per cent or more of the voting
shares of The Arnold Savings Bank, Arnold,
Missouri ( “Bank” ).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Missouri Commissioner of Finance
and requested his views and recommendation. The
Commissioner replied that the acquisition would
be a very progressive step for banking in Missouri.
Notice of receipt of the application was pub
lished in the Federal Register on April 10, 1971
(36 Federal Register 6923), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy
of the application was forwarded to the United
States Department of Justice for its consideration.
Time for filing comments and views has expired
and all those received have been considered.
The Board has considered the application in
the light of the factors set forth in section 3(c)
of the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the banks concerned, and the con
venience and needs of the communities to be
served, and finds that:
Applicant, Missouri’s fifth largest registered
bank holding company and banking organization,
controls six banks located throughout the State
with approximately $382 million in total deposits
(approximately 3.7 per cent of total deposits in
the State). Applicant’s acquisition of Bank ($12.6
million deposits) would increase its share of total
deposits in the State by .1 per cent. (Banking
data are as of June 30, 1970 and reflect holding
company formations and acquisitions approved
through April 30, 1971.) Although no subsidiary
of Applicant competes in Bank’s primary service
area, both Bank and one of Applicant’s subsid
iaries, The First Security Bank, Kirkwood, Mis
souri, compete in the broad St. Louis banking
market (the Missouri portion of the St. Louis
SMSA), holding .3 per cent and .5 per cent of
total deposits in that area, respectively. However,
existing competition between Bank and First
Security Bank is minimal and substantial poten
tial competition is unlikely due to the 20-mile
distance between the two and the location of five
banks in the intervening area. Furthermore, K irk
wood is a suburban community, and its com
muting residents avoid the most direct connecting
route, heavily traveled by local traffic, in favor
of the interstate highway which bypasses Bank.
Based on the facts of record, it appears that no
existing competition would be eliminated by con
summation of the proposal, significant potential
competition would not be foreclosed, and there
LAW DEPARTMENT
539
would not be adverse effects on any competing
bank.
Financial and managerial resources and pros
pects of Applicant, its subsidiary banks, and Bank
are satisfactory, in the light of Applicant’s inten
tion to improve the capital structure of Bank.
Considerations concerning convenience and needs
of the communities to be served lend weight
toward approval, in that Applicant intends to
provide operational service and advice to Bank.
Although the banking needs of the area are
being adequately served, Applicant intends to
enable Bank to offer an additional competitive
alternative for such services as trust services. It
is the Board’s judgment that the proposed trans
action would be in the public interest and that
the application should be approved.
I t i s h e r e b y o r d e r e d , for the reasons set
forth above, that said application be and hereby
is approved, provided that the acquisition so ap
proved shall not be consummated (a) before the
thirtieth calendar day following the date of this
Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Kansas City pursuant to dele
gated authority.
By order of the Board of Governors, May 21,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, and Brimmer.
Absent and not voting: Governors Daane and Sher
rill.
(Signed)
K e n n e th
A.
K enyon,
D eputy Secretary.
[s e a l ]
TEXAS COM M ERCE BANCSHARES, INC.,
HOUSTON, TEXAS
In the m atter of the application of Texas C om
merce Bancshares, Inc., Houston, Texas , for ap
proval of action to becom e a bank holding com
pany.
O rder A
a
p p r o v in g
B ank H
A
c t io n t o
o l d in g
B ecom e
C o m pany
There has come before the Board of Governors,
pursuant to section 3 (a )(1 ) of the Bank Hold
ing Company Act of 1956 (12 U.S.C. 1842(a)
(1 )) and section 222.3(a) of Federal Reserve
Regulation Y (12 CFR 2 2 2 .3 (a)), an application
by Texas Commerce Bancshares, Inc., Houston,
Texas ( “Applicant” ), for the Board’s prior ap
proval of action whereby Applicant would be
come a bank holding company through the ac
quisition of the successor by merger to Texas
Commerce Bank National Association, Houston,
Texas ( “Texas Commerce” ). As an incident to
the merger, Applicant would acquire the beneficial
ownership of more than 20 but less than 25 per
cent of the shares of each of the following six
Texas banks: Airline National Bank of Houston
(24.9 per cent) ; N orth Freeway Bank, Houston
(24.9 per cent); Reagan State Bank of Houston
(24.9 per cent); First National Bank of Stafford
(24.7 per cent); Chemical Bank and Trust Com
pany, Houston (21.1 per cent); and Lockwood
National Bank of Houston (20.4 per cent).
The described shares of the six banks other
than Texas Commerce are owned by Texas Com
merce Shareholders Company, all the shares of
which are held by trustees for the benefit of the
shareholders of Texas Commerce. As a result of
the merger, Applicant will succeed to beneficial
ownership of all of the shares of Texas Commerce
Shareholders Company, and, indirectly, of the
described shares of the six banks.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the ap
plication to the Comptroller of the Currency and
the Texas Commissioner of Banking, and requested
their views and recommendations. Both recom
mended approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on March 24, 1971
(36 Federal Register 5537), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy
of the application was forwarded to the United
States Department of Justice for its consideration.
Time for filing comments and views has expired
and all those received have been considered by
the Board.
The Board has considered the application in
the light of the factors set forth in section 3(c)
of the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the banks concerned, and the con
venience and needs of the communities to be
served, and finds that:
Applicant is a newly-formed organization and
has no operating history. Upon acquisition of
540
Texas Commerce ($865 million of deposits),
Applicant would become the fourth largest bank
holding company in the State and would control
about 4 per cent of the deposits in the State.
(All banking data are as of June 30, 1970, and
reflect holding company acquisitions approved
through April 30, 1971.)
Texas Commerce is located in downtown
Houston. It is the second largest banking organi
zation in the Houston area with control of 16.3
per cent of the deposits in the Houston SMSA,
which approximates the relevant market. (Texas
Commerce will be merged into a nonoperating
bank which has significance only as a vehicle to
accomplish the acquisition of all the shares of
Texas Commerce. Acquisition of the shares of the
resulting bank is treated as an acquisition of the
shares of Texas Commerce.)
Airline National Bank of Houston ($24 million
of deposits), North Freeway Bank ($3 million
of deposits), Reagan State Bank of Houston ($54
million of deposits), First National Bank of Staf
ford ($7 million of deposits), Chemical Bank
and Trust Company ($19 million of deposits),
and Lockwood National Bank ($26 million of
deposits) are all located in areas in or adjacent
to the city of Houston.
Texas Commerce acquired its indirect interest
in five of the six banks in 1968 in order to estab
lish correspondent relationships with these retail
banks and make it a stronger competitor of the
other large Houston banks. In 1969 it participated
in the organization of, and thereby acquired an
interest in, N orth Freeway Bank. While Texas
Commerce presently exerts some influence over
the operations of these six banks, the Board notes
Applicant’s assertion that they “will not be con
trolled by Applicant [and] they will not be sub
sidiaries of Applicant within the meaning of the
term ‘subsidiaries’ as defined in the Act.” Since
it appears that the proposed transaction is essentially a corporate reorganization of existing in
terests and reflects neither expansion of the group
nor an increase in the banking resources controlled
by it, consummation of Applicant’s proposal is not
expected to affect existing or potential banking
competition.
On the basis of the record before it, the Board
concludes that consummation of this proposal
would not have a significant adverse effect on
competition in any relevant area. Considerations
relating to financial and managerial resources and
prospects as they relate to Applicant, Texas Com
FEDERAL RESERVE BULLETIN □ JUNE 1971
merce and the six associated banks are consistent
with approval of the application. Applicant will
begin operations in a satisfactory financial condi
tion and will be able to draw management exper
tise from Texas Commerce. Its prospects, which
depend largely on those of Texas Commerce, are
favorable. The convenience and needs of the
Houston area will not be materially affected by
consummation of Applicant’s proposal. It is the
Board’s judgment that the proposed transaction
would be in the public interest and that the appli
cation should be approved.
I t is h e r e b y o r d e r e d , for the reasons sum
marized above, that said application be and hereby
is approved, provided that the acquisition so ap
proved shall not be consummated (a) before the
thirtieth calendar day following the date of this
Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Dallas pursuant to delegated
authority.
By order of the Board of Governors, May 27,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, Brimmer,
and Sherrill.
(Signed)
K en n eth
A.
K enyon,
D eputy Secretary.
[s e a l ]
THE CENTRAL BANCORPORATION, INC.,
CINCINNATI, OHIO
In the m atter of the application of The Central
Bancorporation, Inc., Cincinnati, Ohio, for ap
proval of acquisition of 100 per cent of the
voting shares ( less directors’ qualifying shares)
of the successor by merger to The First Trust and
Savings Bank, Zanesville, Ohio.
O rder A
p p r o v in g
by
A c q u is it i o n
of
B ank Stock
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )),
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 222.3( a ) ), an application by The
Central Bancorporation, Inc., Cincinnati, Ohio
( “Applicant”), a registered bank holding com
pany, for the Board’s prior approval of the acqui-
LAW DEPARTMENT
sition of 100 per cent of the voting shares (less
directors’ qualifying shares) of the successor by
merger to The First Trust and Savings Bank,
Zanesville, Ohio ( “Bank” ). The new bank has
significance only as a means of acquiring all of
the shares of the bank to be merged into it; the
proposal is therefore treated herein as one to
acquire shares of The First Trust and Savings
Bank.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Superintendent of Banks of the
State of Ohio and requested his views and recom
mendation. The Superintendent recommended
approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 15, 1971
(36 Federal Register 7160), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposed transaction.
A copy of the application was forwarded to the
United States Department of Justice for its con
sideration. Time for filing comments and views
has expired and all those received have been con
sidered by the Board.
The Board has considered the application in
the light of the factors set forth in section 3(c)
of the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of
Applicant and the banks concerned, and the con
venience and needs of the communities to be
served. Upon such consideration the Board finds
that:
Applicant, the ninth largest banking organiza
tion in Ohio, controls two banks with deposits
of approximately $501 million, representing less
than 3 per cent of total commercial bank de
posits in the State. (All banking data are as of
June 30, 1970, adjusted to reflect holding com
pany formations and acquisitions approved by the
Board through April 30, 1971). The acquisition
of Bank, with deposits of $24 million, would
increase Applicant’s control of deposits in the
State by only 0.1 per cent, and its present rank
ing among banking organizations in the State
would not change.
Bank has five offices and is the smallest of three
banks located by Muskingum County, all of which
are headquartered in Zanesville. The two larger
banks control approximately 43 and 30 per cent
of county deposits, respectively, and Bank con
trols 27 per cent of such deposits. Applicant’s
541
subsidiary nearest to Bank is located in Marietta,
60 miles southeast of Zanesville, and the nearest
offices of the two banks are separated by one
county and five banking offices. It appears that
there is no significant present competition between
Applicant’s subsidiaries and Bank; that consum
mation of the proposal could serve to stimulate
additional competition in the Zanesville area by
severing a present relationship between Bank and
the largest bank in Zanesville. It further appears
that the proposed acquisition would not foreclose
significant potential competition because of Ohio’s
restrictive branching laws and of the distances
involved; nor does it appear that any competing
banks would be adversely affected by the proposed
acquisition. Based upon the record, the Board
concludes that consummation of the proposed
acquisition would have no significant adverse effect
on competition in any relevant area.
The banking factors and convenience and
needs considerations involved in this proposal are
consistent with and lend some weight in favor of
approval of the application. Affiliation with Ap
plicant would enhance Bank’s prospects, and
permit Bank to improve and enlarge present
services in its trust department, and in its install
ment and mortgage lending. In addition, Appli
cant would assist Bank in researching the feasi
bility of establishing other branches in northern
Muskingum County which is apparently in need
of additional banking facilities. It is the Board’s
judgment that the proposed transaction would
be in the public interest, and that the application
should be approved.
I t i s h e r e b y o r d e r e d , for the reasons set forth
in the findings summarized above, that said appli
cation be and hereby is approved, provided that
the action so approved shall not be consummated
(a) before the thirtieth calendar day following
the date of this Order, or (b) later than three
months after the date of this Order, unless such
period is extended for good cause by the Board,
or by the Federal Reserve Bank of Cleveland pur
suant to delegated authority.
By order of the Board of Governors, June 1,
1971.
Voting for this action: Vice Chairman Robertson
and Governors Mitchell, Maisel, Brimmer, and Sherril. Absent and not voting: Chairman Burns and
Governor Daane.
(Signed)
K en n eth
A.
K enyon,
D eputy Secretary
[s e a l ]
542
FEDERAL RESERVE BULLETIN □ JUNE 1971
FIRST AM ERICAN NATIONAL
CORPORATION
NASHVILLE, TENNESSEE
In the m atter of the application of First A m eri
can N ational Corporation, Nashville, Tennessee,
for approval of action to become a bank holding
company.
O rder A
a
p p r o v in g
B ank H
A
c t io n
o l d in g
to
B ecom e
C o m pany
There has come before the Board of Governors,
pursuant to section 3 (a )(1 ) of the Bank Hold
ing Company Act of 1956 (12 U.S.C.
1 8 4 2 (a )(1 )) and section 222.3(a) of Federal
Reserve Regulation Y (12 CFR 2 2 2 .3 (a)), an
application by First American National Corpora
tion, Nashville, Tennessee ( “Applicant” ), for
the Board’s prior approval of action whereby
Applicant would become a bank holding com
pany through the acquisition of 100 per cent of
the voting shares (less directors’ qualifying
shares) of the successor by merger to First Ameri
can National Bank of Nashville, Nashville, Ten
nessee ( “Bank” ), and a nonoperating bank. The
nonoperating bank has significance only as a
means of acquiring all of the shares of the bank
to be merged into it; the proposal is therefore
treated herein as one to acquire shares of Bank.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Comptroller of the Currency and
requested his views and recommendation. The
Comptroller offered no objection to approval of
the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 20, 1971
(36 Federal Register 7487), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy
of the application was forwarded to the United
States Department of Justice for its consideration.
Time for filing comments and views has expired,
and all those received have been considered by the
Board.
The Board has considered the application in the
light of the factors set forth in section 3(c) of
the Act, including the effect of the proposed acqui
sition on competition, the financial and managerial
resources and future prospects of the Applicant
and the bank concerned, and the convenience and
needs of the communities to be served, and finds
that:
Applicant is a nonoperating corporation formed
for the purpose of acquiring Bank ($565.9 mil
lion deposits). (All banking data are as of June
30, 1970, and reflect holding company approvals
and acquisitions to date). Upon consummation
of the proposal, Applicant will assume Bank’s
present position as the State’s third largest bank
ing organization with 8.5 per cent of total de
posits in the State. As Applicant has no present
operations or subsidiaries, consummation of the
proposal would eliminate neither existing nor po
tential competition. Neither does it appear that
there would be adverse effects on any bank in the
area involved.
The financial and managerial resources and
prospects of Bank are generally satisfactory, as
would be those of Applicant upon approval. Con
summation of the proposal would have no im
mediate effect on the convenience and needs of
the community involved. Considerations under
these factors are consistent with approval. It is
the Board’s judgment that consummation of the
proposal would be in the public interest and that
the application should be approved.
I t i s h e r e b y o r d e r e d , for the reasons sum
marized above, that said application be and
hereby is approved, provided that the acquisition
so approved shall not be consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after
the date of this Order, unless such period is ex
tended for good cause by the Board, or by the
Federal Reserve Bank of Atlanta pursuant to
delegated authority.
By order of the Board of Governors, June 3,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, and Sher
rill. Absent and not voting: Governor Brimmer.
(Signed) K e n n e t h A. K e n y o n ,
D eputy Secretary.
[s e a l ]
MISSOURI BANCSHARES, INC.,
KANSAS CITY, MISSOURI
In the m atter of the application of Missouri
Bancshares, Inc., Kansas City, Missouri, for ap
proval of acquisition of 90.65 per cent or more of
the voting shares of Bank of Ferguson, Ferguson,
Missouri.
O rder A
Stock
p p r o v in g
by
A
c q u is it i o n
of
Bank
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
LAW DEPARTMENT
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regu
lation Y (12 CFR 2 2 2 .3 (a )), an application by
Missouri Bancshares, Inc., Kansas City, Missouri
( “Applicant” ), a registered bank holding com
pany, for the Board’s prior approval of the acqui
sition of 90.65 per cent or more of the voting
shares of Bank of Ferguson, Ferguson, Missouri
( “Bank” ).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Missouri Commissioner of Finance
and requested his views and recommendation.
The Commissioner indicated that he had no ob
jection to approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 17, 1971
(36 Federal Register 7328), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy
of the application was forwarded to the United
States Department of Justice for its consideration.
Time for filing comments and views has expired
and all those received have been considered.
The Board has considered the application in the
light of the factors set forth in section 3(c) of
the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the banks concerned, and the con
venience and needs of the communities to be
served, and finds that:
Applicant, the fifth largest registered bank
holding company and banking organization in
Missouri, has 7 subsidiary banks with $395 mil
lion in deposits, representing approximately 3.8
per cent of the total commercial bank deposits in
the State. (All banking data are as of June 30,
1970, and reflect holding company formations
and acquisitions approved by the Board to date.)
Consummation of the proposal herein would in
crease Applicant’s share of total deposits in the
State to 4 per cent, and Applicant would become
the State’s fourth largest registered bank holding
company and banking organization.
Bank ($20.9 million deposits) the only bank in
Ferguson, is the seventh largest of the 12 banks
in its service area, which is approximated by the
northeast portion of St. Louis County, and holds
6.7 per cent of that area’s deposits. Bank faces
strong competition from the other area banks,
three of which are affiliated with St. Louis-based
holding companies. Applicant has two subsidiaries
located 18 and 30 miles from Bank, but the
amount of competition between these subsidiaries
543
and Bank appears to be minimal. None of Appli
cant’s other subsidiary banks competes with Bank
to any significant extent. Additionally, the de
velopment of such competition in the future is
considered unlikely because of the distances sepa
rating Applicant’s subsidiaries and Bank, the
presence of numerous banking alternatives, and
Missouri’s restrictive branching law. Consum
mation of the proposal may enhance competition
by making Bank a more effective competitor in
its service area. It does not appear that existing
competition would be eliminated, or significant
potential competition foreclosed, by consumma
tion of Applicant’s proposal, or that there would
be undue adverse effects on any bank in the area
involved.
On the basis of the record before it, the Board
concludes that consummation of the proposed
acquisition would not adversely affect competition
in any relevant area. Considerations relating to
the financial and managerial resources as they
relate to Applicant, its subsidiaries, and Bank are
regarded as consistent with approval of the appli
cation. Unlike the other area banks, Bank has
been operated conservatively and does not appear
to have made a broad effort to meet the banking
needs of area residents. Applicant proposes to
change this conservative policy and to establish
new services, including trust services, payroll
accounting, and an expanding consumer loan pro
gram, which should enable Bank to better serve
the expanding needs of the area. These considera
tions relating to convenience and needs lend weight
in support of approval of the application. It is the
Board’s judgment that the proposed transaction
would be in the public interest, and that the
application should be approved.
I t i s h e r e b y o r d e r e d , for the reasons set forth
above, that said application be and hereby is
approved, provided that the acquisition so ap
proved shall not be consummated (a) before the
thirtieth calendar day following the date of this
Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Kansas City pursuant to dele
gated authority.
By order of the Board of Governors, June 7,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, Brimmer,
and Sherrill.
(Signed) K e n n e t h A. K e n y o n ,
D eputy Secretary
[s e a l ]
FEDERAL RESERVE BULLETIN □ JUNE 1971
544
SECURITY FINANCIAL SERVICES, INC.,
SHEBOYGAN, WISCONSIN
In the m atter of the application of Security
Financial Services, Inc., Sheboygan, Wisconsin,
for approval of acquisition of 80 per cent or more
of the voting shares of Farmers-Merchants N a
tional Bank in Princeton, Princeton, Wisconsin.
O rder A
S tock
p p r o v in g
by
A
c q u is it i o n
of
Bank
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(3 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 ))
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a )), an application by
Security Financial Services, Inc., Sheboygan, Wis
consin (“Applicant” ), a registered bank holding
company, for the Board’s prior approval of the
acquisition of 80 per cent or more of the voting
shares of Farmers-Merchants National Bank in
Princeton, Princeton, Wisconsin ( “Bank” ).
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Comptroller of the Currency and
requested his views and recommendation. The
Comptroller offered no objection to approval of
the application.
Notice of receipt of the application was pub
lished in the Federal Register on April 22, 1971
(36 Federal Register 7623), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposed trans
action. A copy of the application was forwarded
to the United States Department of Justice for
its consideration. The time for filing comments
and views has expired and all those received have
been considered by the Board.
The Board has considered the application in
the light of the factors set forth in section 3(c) of
the Act, including the effect of the proposed
acquisition on competition, the financial and
managerial resources and future prospects of the
Applicant and the banks concerned, and the con
venience and needs of the communities to be
served. Upon such consideration, the Board finds
that :
Applicant, the thirteenth largest banking or
ganization in Wisconsin, controls two banks with
aggregate deposits of $73 million, representing
0.8 per cent of the State’s total deposits. (All
banking data are as of June 30, 1970, adjusted to
reflect bank holding company formations and
acquisitions approved by the Board through April
30, 1971). Upon acquisition of Bank ($11 million
in deposits), Applicant would increase its share
of State-wide deposits to 0.9 per cent and would
become the eleventh largest banking organization
in the State.
Bank, the only bank located in Princeton (est.
population 1,500), serves the west-central part
of Green Lake County. Applicant’s two bank
ing subsidiaries are approximately 80 miles east
of Bank in Sheboygan.
Bank is the largest of eight banks competing in
the Princeton area, holding 19.6 per cent of area
deposits. The second and third largest banks in
the area hold 17.6 per cent and 16.4 per cent of
area deposits, respectively. All of the banks in the
area primarily serve the towns in which they are
located, and Bank is not regarded as dominating
the area. Based upon the record before it, the
Board concludes that consummation of the pro
posed acquisition would not eliminate significant
existing or potential competition, nor would it
have an adverse competitive effect on other area
banks.
Considerations relating to the financial and
managerial resources and future prospects, as they
relate to Applicant, its subsidiaries, and Bank are
regarded as consistent with approval of the appli
cation. Bank’s affiliation with Applicant would
make available trust, travel, and computer services
to Bank’s customers for the first time and exist
ing services would be improved and broadened.
Affiliation would also give Bank the expertise
and capability to service certain loan requests
that it has avoided in the past because of a lack
of experience in handling the larger commercial
and agricultural borrowers in the area. Considera
tions relating to the convenience and needs of the
communities served by bank lend some support
for approval of the application. It is the Board’s
judgment that consummation of the proposed
acquisition would be in the public interest, and
that the application should be approved.
I t is h e r e b y o r d e r e d , for the reasons set forth
in the findings summarized above, that said appli
cation be and hereby is approved, provided that
the acquisition so approved shall not be consum
mated (a) before the thirtieth calendar day fol
lowing the date of this Order or (b) later than
three months after the date of this Order, unless
such period is extended for good cause by the
Board, or by the Federal Reserve Bank of Chi
cago pursuant to delegated authority.
545
LAW DEPARTMENT
By order of the Board of Governors, June 7,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Daane, Maisel, Brimmer
and Sherrill.
(Signed) K e n n e t h A. K e n y o n ,
D eputy Secretary
[s e a l ]
GREAT LAKES H OLDING COM PANY
KALAMAZOO, M ICHIGAN
In the matter of the application of Great Lakes
Holding Company, Kalamazoo, Michigan, for ap
proval of action to become a bank holding com
pany through the acquisition of not less than 89
per cent, nor more than 92 per cent, of the voting
shares of Industrial State Bank & Trust Company,
Kalamazoo, M ichigan.
O rder A
a
p p r o v in g
A
c t io n
to
B ecom e
B a n k H o l d in g C o m p a n y
There has come before the Board of Governors,
pursuant to section 3 (a )(1 ) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )),
and section 222.3(a) of Federal Reserve Regula
tion Y (12 CFR 2 2 2 .3 (a)), an application by
Great Lakes Holding Company, Kalamazoo,
Michigan, for the Board’s prior approval of action
whereby Applicant would become a bank holding
company through the acquisition of not less than
89 per cent, nor more than 92 per cent, of the
voting shares of Industrial State Bank & Trust
Company, Kalamazoo, Michigan.
As required by section 3(b) of the Act, the
Board gave written notice of receipt of the appli
cation to the Michigan Commissioner of Finan
cial Institutions and requested his views and
recommendation. The Commissioner recom
mended approval of the application.
Notice of receipt of the application was pub
lished in the Federal Register on June 2, 1971
(36 Federal Register 10756), providing an oppor
tunity for interested persons to submit comments
and views with respect to the proposal. A copy of
the application was forwarded to the United States
Department of Justice for its consideration. Time
for filing comments and views has expired and all
those received have been considered by the Board.
The Board has considered the application in the
light of the factors set forth in section 3(c) of the
Act, including the effect of the proposed acquisi
tion on competition, the financial and managerial
resources and future prospects of the Applicant
and the banks concerned, and the convenience and
needs of the communities to be served, and finds
that:
Applicant is a nonoperating Michigan corpora
tion recently formed for the purpose of acquiring
Bank with deposits of $106 million as of Decem
ber 31, 1970. As Applicant has no present
operations or subsidiaries, consummation of the
proposal would eliminate neither existing nor po
tential competition, and there would be no adverse
effects on competing banks.
The acquisition proposed herein would result in
Bank’s becoming a stronger and more viable
banking institution, and a more effective competi
tor in the relevant area. Banking factors involved
weigh heavily in favor of approval of the appli
cation since Applicant will provide Bank with an
additional $2 million of needed capital and has
formulated plans to improve Bank’s present oper
ating procedures. The Michigan Commissioner of
Financial Institutions has recommended approval
of the application based on the proposed improve
ment of Bank’s capital position and management
under Applicant’s control. Whereas there is no
indication that present banking needs of the area
are not being adequately served at the present
time, it is apparent that consummation of the pro
posal would strengthen the Bank and enable it to
serve better the banking needs of its area. There
fore, considerations relating to the convenience
and needs of the communities to be served also
lend weight in favor of approval of the applica
tion. It is the Board’s judgment that the proposed
transaction would be in the public interest and
that the application should be approved.
I t is h e r e b y o r d e r e d , For the reasons set
forth above, that said application be and hereby
is approved, provided that the acquisition so
approved shall not be consummated (a) before
the thirtieth calendar day following the date of this
Order, or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Chicago pursuant to delegated
authority.
By order of the Board of Governors, June 11,
1971.
Voting for this action: Chairman Burns and Gov
ernors Robertson, Mitchell, Maisel, Brimmer, and
Sherrill. Absent and not voting: Governor Daane.
(Signed)
K en n eth
A.
K enyon,
D eputy Secretary.
[s e a l ]
Announcements
CHANGE IN BOARD STAFF
The Board of Governors of the Federal Reserve
System has announced the promotion, effective
May 31, 1971, of James B. Eckert to the position
of Associate Adviser in the Division of Research
and Statistics.
APPOINTMENT OF RESERVE BANK OFFICERS
The Board of Governors has approved the ap
pointment by the directors of the Federal Reserve
Bank of Cleveland of Willis J. Winn as President
of that Bank, effective September 1.
Mr. Winn has been Dean of the W harton School
of Finance and Commerce and Vice Provost of the
University of Pennsylvania since 1958. From
1961 to 1970 he was a director of the Federal Re
serve Bank of Philadelphia and served as its chair
man from 1966 to 1970. He holds degrees from
Central College, Fayette, Missouri (A.B. and
LL.D .), the University of Pennsylvania (M.A.
and Ph.D .), and Villanova University (LL.D .).
The directors of the Federal Reserve Bank of
St. Louis have named Eugene A. Leonard as First
Vice President, effective August 1, to succeed
Dale M. Lewis. Mr. Leonard has been associated
with the Federal Reserve Bank of St. Louis since
1961 and has been Senior Vice President since
1970. On loan to the Board of Governors
since August of last year, he has been serving as
an Assistant Secretary in the Office of the
Secretary.
STATEMENT OF POLICY ON PAYMENTS
MECHANISM
The Board of Governors issued on June 17, 1971,
a policy statement calling for basic changes in the
Nation’s system for handling money payments.
These are, essentially, transitional steps toward
replacing the use of checks with electronic transfer
of funds. The Board’s statement, which was di
rected to the Presidents of the 12 Federal Reserve
Banks, is as follows:
Increasing the speed and efficiency with which
the rapidly mounting volume of checks is handled
is becoming a matter of urgency. Until electronic
facilities begin to replace check transfer in sub
546
stantial volume, the present system is vulnerable
to serious transportation delays and manpower
shortages. Structural changes in the present checkclearing system can effect significant savings in
manpower and unnecessary handling of checks.
These changes will result in faster, more con
venient, and more economical banking services for
the public. They will reduce the cost of operations.
The Board therefore states as a matter of policy
that it places high priority upon efforts by the
Federal Reserve System to improve the Nation’s
means of making payments, initially along the
following lines:
1. Extending present clearing arrangements ,
in cities with Federal Reserve offices, into
larger zones of immediate payment, consist
ent with transportation possibilities, check
volumes, and the location of check-processing
centers.
2. Establishing other regional clearing facili
ties, in which settlements are made in im
m ediately available funds, located wherever
warranted by the need for more expeditious
and economical check handling, or other op
erating and financial conditions.
3. (a) Encouraging banks and their custom
ers to make greater use of the expanded
capabilities of the Federal Reserve wire trans
fer system, (b) Rem oving restrictions on
third-party transfers of demand deposits, and
extending the time period in which the wire
transfer system can be used, (c) Expanding
facilities at Reserve Bank offices, where justi
fied by traffic potentials, to include high-speed
tape transmission, and computer-to-computer
communications.
Plans for making these basic changes in the
present money transfer system should be pursued
actively, to achieve as soon as possible an accel
erated flow of funds along more optimal routing
patterns. These initiatives are generally intended
to supplement those efficient direct check-exchange
programs that are now in existence.
The first objective should be expanasion of the
geographic area of existing immediate payment
zones. This should be accomplished as soon as
necessary arrangements can be made. Meantime,
studies looking to the establishment of new clear
ing centers, wherever warranted, should be under
taken promptly by each Federal Reserve Bank,
and submitted to the Board for review. Expan
sion of facilities at Federal Reserve offices for
increased access to the Reserve System’s wire net
work should be concluded at the earliest prac
ticable time, generally during the next 12 to 18
months.
TRANSFER OF FEDERAL RESERVE BRANCH
TERRITORY
The territory of the Denver Branch of
Federal Reserve Bank of Kansas City will
extended effective July 6, 1971, to include
State of Wyoming. Wyoming has been in
territory served by the Omaha Branch of
Federal Reserve Bank of Kansas City.
MORTGAGE COMMITMENT DATA
the
be
the
the
the
PUBLICATION OF ANNUAL REPORT
The Fifty-Seventh Annual Report of the Board of
Governors of the Federal Reserve System, covering
operations for the calendar year 1970, is available
for distribution. Copies may be obtained upon re
quest to Publications Services, Division of Ad
ministrative Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
INFORMATION ON FAIR CREDIT REPORTING ACT
The Board of Governors on May 24, 1971, issued
a series of questions and answers to assist financial
institutions in complying with the Fair Credit Re
porting Act (a portion of Public Law 91-508).
The general purpose of the Act, which became
effective on April 25, is to assure fair and accurate
reporting of information regarding consumers.
The questions and answers were prepared
jointly by the staffs of the Board, the Comptroller
of the Currency, the Federal Deposit Insurance
Corporation, and the Federal Home Loan Bank
Board, each of which will issue them to institutions
under its supervision. The information is not
a regulation of the Board and is merely designed
to provide guidance to financial institutions. Insti
tutions that act in accordance with the informa
tion, however, will be regarded by the Board’s
examiners as acting in compliance with the Act.
Data for mortgage commitments of $100,000 and
over authorized by 15 life insurance companies to
acquire loans on nonfarm multifamily and non
residential properties— only for the period 1951
through 1970—may be obtained from Publications
Services, Division of Administrative Services,
Board of Governors of the Federal Reserve Sys
tem, Washington, D.C. 20551. Included in the
tabulations are monthly, quarterly, and annual
statistics on total number of loans and total loan
amount, and also averages for loan amount, con
tract interest rate, maturity, loan-to-value ratio,
per cent constant, debt coverage ratio, and capi
talization rate. Collection of these data was
initiated as part of the broad study of interest
rates conducted by the National Bureau of Eco
nomic Research, aided by grants from the Life
Insurance Association of America. The Federal
Reserve assisted in certain phases of collecting
and tabulating the commitment data prior to mid1965 and is in the process of analyzing all of the
statistics. Current data are collected by the Life
Insurance Association of America.
547
National Summary of Business Conditions
Released for publication June 14
Industrial production and nonfarm employment
increased in May. The unemployment rate edged
up further and retail sales declined. Wholesale
prices continued to advance. Commercial bank
credit, the money supply, and time and savings
deposits increased in May. Between mid-May
and mid-June, yields on short and intermediate
U.S. Government securities rose and yields on
municipal bonds declined.
INDUSTRIAL PRODUCTION
Industrial production rose 0.7 per cent further
in May and at 167.3 per cent of the 1957-59
average was 4.2 per cent below the m id-1969
peak. Output of consumer goods and materials
continued to rise and production of total equip
ment leveled off following earlier declines.
Auto assemblies rose 5 per cent and were at an
annual rate of 8.5 million units. Production
schedules for June indicate little change from the
May rate. Output of furniture and consumer
staples increased further in May, while production
of appliances and television sets changed little.
Output of business and defense equipment, which
declined about one-fifth from the 1969 peak to
April, rose 0.3 per cent in May. Production of
iron and steel, textiles, rubber, and chemicals
INDUSTRIAL PRODUCTION
1957-59=100
increased. Output of coal and petroleum prod
ucts, however, declined.
EMPLOYMENT
Nonfarm payroll employment rose moderately
in May, reflecting increases in trade, durable goods
manufacturing, and State and local governments.
The average workweek of manufacturing produc
tion workers rose 0.2 hour, returning to the
March level of 39.9 hours. The unemployment
rate edged up further in May to 6.2 per cent, the
same as in December 1970.
RETAIL SALES
The value of retail sales declined nearly 1 per
cent in May, according to the advance report,
and was 6 per cent above a year earlier. Durable
goods sales were 3 per cent lower and nondurable
goods sales were unchanged.
WHOLESALE AND CONSUMER PRICES
Wholesale prices, seasonally adjusted, increased
0.3 per cent between April and May. Industrial
commodities rose 0.4 per cent, reflecting sharply
higher prices for metals and metal products and
fuels. Prices of farm and food products dropped
0.2 per cent with declines in fresh and dried fruits
and vegetables, grains, and fluid milk.
The consumer price index rose 0.3 per cent in
April, after seasonal adjustment, as food prices
continued their rapid advance, but mortgage in
terest costs and gasoline prices declined.
BANK CREDIT, DEPOSITS, AND RESERVES
F.R.
indexes,
548
seasonally
adjusted.
Latest
figures:
May.
Commercial bank credit, adjusted for transfers
of loans between banks and their affiliates, in
creased $4.4 billion in May. This increase followed
a slight decline in April but was about the same
as the average monthly increase over the first
quarter. Growth in loans accounted for a major
part of the May credit expansion and was asso
ciated principally with increases in loans to busi
nesses and nonbank financial institutions. Hold
ings of municipal and Federal agency securities
increased substantially further but less rapidly
than in other recent months while holdings of
U.S. Treasury securities were unchanged.
The money stock rose sharply in May— at an
annual rate of 16.3 per cent— considerably faster
than in April and the first quarter. U.S. Govern
ment deposits declined somewhat. Growth in time
and savings deposits— at an annual rate of 14.5
per cent— was larger than in April but well below
the unusually rapid first quarter expansion. In
flows of time and savings deposits other than large
negotiable CD’s were about the same as in April
but much smaller than earlier in the year. Com
mercial bank sales of large negotiable CD ’s in
creased in May.
Free reserves of member banks averaged about
$10 million over the 4 weeks ending May 26,
little different from the average of the previous
4 weeks. Relatively high free reserves in the first
half of the month were about offset by net bor
rowed reserves in the second half. Over May,
PRICES
Wholesale
Consumer
1967=100
Bureau of Labor Statistics. “Farm products and foods” is
BLS “Farm products, and processed foods and feeds.” Latest
figures: Consumer, April; W holesale, May.
excess reserves increased on average but member
bank borrowings also rose.
SECURITY MARKETS
Treasury bill yields rose about 50 to 60 basis
points on balance between mid-May and midJune. The 3-month bill was bid at about 4.70 per
cent in the middle of June, compared with around
4.10 per cent a month earlier. Yields on intermediate-term Government notes and bonds rose
by about 10 to 15 basis points over the same
period, while rates on long-term bonds changed
little on balance.
Yields on new corporate securities rose sharply
early in the interval, but a subsequent improvement
of market conditions brought rates down to month
earlier levels by mid-June. Seasoned security rates,
which tend to lag new issue yields, rose mod
erately. Yields on municipal bonds dropped about
10 basis points from mid-May to mid-June.
Common stock prices and volume remained
steady on balance over the same period.
INTEREST RATES
PER CENT
Discount rate, range or level for all F.R. Banks. Weekly aver
age market yields for U .S. Govt, bonds maturing in 10 years
or more and for 90-day Treasury bills. Latest figures: week
ending June 5.
549
Financial and Business Statistics
CONTENTS
A 3
GUIDE TO TABULAR PRESENTATION
A 3
STATISTICAL RELEASES: REFERENCE
U.S. STATISTICS:
A 4
A
A
A
A
A
A
A
A
8
9
10
11
12
14
15
16
Member bank reserves, Federal Reserve Bank credit,
and related items
Federal funds— Major reserve city banks
Reserve Bank interest rates
Reserve and margin requirements
Maximum interest rates; bank deposits
Federal Reserve Banks
Open market account
Reserve Banks; bank debits
U.S. currency
A
A
A
A
A
A
A
A
A
A
17
18
19
20
26
31
32
33
35
36
Money stock
Bank reserves; bank credit
Banks and the monetary system
Commercial banks, by classes
Weekly reporting banks
Business loans of banks
Loan sales by banks
Interest rates
Security markets
Stock market credit
A
A
A
A
A
A
A
A
A
37
37
39
40
42
45
48
50
54
Open market paper
Savings institutions
Federally sponsored credit agencies
Federal finance
U.S. Government securities
Security issues
Business finance
Real estate credit
Consumer credit
Continued on next page
A 1
A 2
FEDERAL RESERVE BULLETIN a JUNE 1971
U.S. STATISTICS— Continued
A
A
A
A
A
A
A
A
58
62
62
64
66
66
68
70
A
A
A
A
A
72
73
74
75
76
INTERNATIONAL STATISTICS:
U.S. balance of payments
Foreign trade
U.S. gold transactions
U.S. reserve assets; position in the IMF
International capital transactions of the United States
A
A
A
A
A
89
90
91
92
93
Foreign exchange rates
Money rates in foreign countries
Arbitrage on Treasury bills
Gold reserves of central banks and governments
Gold production
A
94
A 94
A 96
Industrial production
Business activity
Construction
Labor force, employment, and earnings
Consumer prices
Wholesale prices
National product and income
Flow of funds (revised 1970 data for annual flows and
for assets and liabilities)
TABLES PUBLISHED PERIODICALLY (see above for
flow of funds):
Insured commercial banks, 1970:
Income, expenses, and dividends
Member banks, 1970:
Income, expenses, and dividends:
By class of bank
By Federal Reserve district
A
102
A
104
By size of bank
A
110 Bank holding companies, December 31, 1970
A
121 INDEX TO STATISTICAL TABLES
Income ratios, by class of bank and Federal Reserve
district
A 3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
e
Estimated
c
Corrected
p
Preliminary
r
Revised
rp
Revised preliminary
I, II,
III, IV Quarters
n.e.c.
Not elsewhere classified
A.R.
Annual rate
S.A.
Monthly (or quarterly) figures adjusted for
seasonal variation
N.S.A.
IPC
SMSA
A
L
S
U
*
Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Sources of funds
Uses of funds
Amounts insignificant in terms of the 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 following 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
TABLES PUBLISHED QUARTERLY, SEMIANNUALLY,
WITH LATEST BULLETIN REFERENCE
Q uarterly
.
Flow ol tunds......................................
Issue
/Mar. 1971
^June 19?1
Page
include not fully guaranteed issues) as well as direct
obligations of the Treasury. “State and local govt.” also
includes municipalities, special districts, and other politi
cal subdivisions.
In some of the tables details do not add to totals
because of rounding.
The footnotes labeled N o t e (which always appear
last) provide (1) the source or sources of data that do
not originate in the System; (2) notice when figures are
estimates; and (3) information on other characteristics
of the data.
OR ANNUALLY,
Annually— Continued
A-71.1—A-71.9
A-70—A-71.1
Semiannually
Feb. 1971
A-96
° % » ? r l,n0nt.™ iu federal ReSCrVe F,h 1971
Par List, number........................... Feb. 1971
4 97
A-97
'966-70............................................
1970 selected data (revised).........
o f changes in num ber....
Annually
Bank holding companies:
List of, Dec. 31, 1970....................... June 1971
Banking offices and deposits o f
group banks, Dec. 31, 1 9 6 9 ... . Aug. 1970
Banking and monetary statistics,
1970......................................................
Page
A-94—A-95
” A ls ^ Z lH a b ilit ie s :
1959-70............................................
data <revised>........................
An” ^
Issue
Banks and branches, number, by
class and State...................................
Apr. 1971
Feb. 1971
Mar. 1971
A-110
A-95
A-98—A-99
A-94—A-106
Income and expenses:
Federal Reserve Banks....................
Insured commercial banks.............
Member banks:
Calendar year................................
Income ratios................................
Operating ratios............................
Mar. 1971 A-71.10—A-71.21
June 1971
A -71.2-A -71.J
Mar. 1971
June 1971
A -7 0 -A -7 I.9
A-70—A-71.1
Feb. 1971A-94— A-95
A-94
June 1971
June 1971
June 1971
Aug. 1970
A-94—A-103
A-104—A-109
A-114—A-119
Stock exchange firms, detailed debit
and credit balances...........................
Sept. 1970
A-94— A-95
Statistical Releases
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Anticipated schedule o f release dates for individual releases............................................................................
Issue
Page
June 1971
A-117
A 4
BANK RESERVES AND RELATED ITEMS □ JUNE 1 9 7 1
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In millions of dollars)
Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date
U.S. Govt, securities 1
Total
Bought
out
right
Held
under
repur
chase
agree
ment
Treas
ury
cur
rency
out
stand
ing
D is
counts
and
ad
vances
Float 2
83
170
652
1,117
2,612
2,404
24,744
21,606
17,518
22,759
20,047
22,879
2,956
3,239
4,322
4,629
17,954
13,799
13,158
12,436
10,367
10,367
5,396
5,565
6,284
6,777
6,810
6,841
Other
F.R.
assets 3
Total 4
Gold
stock
Special
Drawing
Rights
certificate
account
Averages of daily figures
1939—D ec.................................
1941—D ec.................................
1945—D ec.................................
1950—D ec.................................
2,510
2,219
23,708
20,345
2,510
2,219
23,708
20,336
9
8
5
381
142
1960 D ec.................................
1965 D ec.................................
1966 D ec.................................
1967—D ec.................................
1968—D ec.................................
1969—j)ec.................................
27,248
40,885
43,760
48,891
52,529
57,500
27,170
40,772
43,274
48,810
52,454
57,295
78
113
486
81
75
205
94
490
570
238
765
1,086
1,665
2,349
2,383
2,030
3,251
3,235
2,204
29,060
43,853
46,864
51,268
56,610
64,100
1970—M ay................................
June................................
July................................
Aug.................................
Sept.................................
Oct..................................
N ov.................................
D ec.................................
57,265
57,630
58,219
59,544
59,903
59,533
60,393
61,688
57,179
57,584
58,003
59,255
59,625
59,360
60,004
61,310
86
46
216
289
278
173
389
378
1,066
978
1,432
849
607
462
425
321
2,985
2,824
2,901
2,446
2,832
2,933
2,933
3,570
1,708
1,369
1,302
1,248
1,216
1,734
1,314
1,032
63,087
62,843
63,912
64,134
64,619
64,708
65,132
66,708
11,367
11,367
11,367
11,367
11,300
11,117
11,117
11,105
400
400
400
400
400
400
400
400
6,967
6,999
6,994
7,009
7,049
7,069
7,100
7,145
1971—Jan...................................
Feb..................................
Mar.................................
Apr..................................
62,068
62,350
62,719
63,371
64,714
61,941
62,051
62,381
63,153
64,368
127
299
338
218
346
370
328
319
148
330
3,636
2,974
2,671
3,047
2,688
1,216
1,065
896
1,103
1,076
67,363
66,797
66,691
67,747
68,910
10,732
10,732
10,732
10,732
10,448
400
400
400
400
400
7,157
7,188
7,235
7,291
7,357
62,627
62,206
63,032
62,510
63,076
62,479
62,169
62,301
62,423
62,581
148
37
731
87
495
258
421
290
333
257
2,723
2,906
2,549
2,853
2,482
844
829
879
922
966
66,520
66,414
66,867
66,699
66,874
10,732
10,732
10,732
10,732
10,732
400
400
400
400
400
7,210
7,223
7,230
7,242
7,255
7 ...........................
14...........................
2 1 ...........................
2 8...........................
63,268
63,114
63,526
63,476
62,709
62,921
63,394
63,424
559
193
132
52
197
150
84
176
2,718
2,958
3,259
3,252
1,010
1,053
1,177
1,152
67,308
67,338
68,110
68,131
10,732
10,732
10,732
10,732
400
400
400
400
7,268
7,284
7,296
7,309
May 5 ...........................
12...........................
19...........................
26*>.........................
64,238
64,504
64,804
64,942
63,808
63,981
64,452
64,764
430
523
352
178
174
99
306
269
2,753
2,540
2,964
2,779
1,186
1,297
1,109
851
68,438
68,537
69,276
68,949
10,732
10,561
10,332
10,332
400
400
400
400
7,326
7,345
7,354
7,372
64,345
63,721
64,764
6 62,841
6 63,721
6 64,764
1,504
391
81
1,051
2,550
2,824
2,409
997
1,169
927
68,421
67,851
69,263
10,732
10,732
10,332
400
400
400
7,270
7,329
7,390
1971— Mar. 3 ...........................
10...........................
17...........................
2 4 ...........................
31...........................
62,767
62,495
63,054
62,455
64,345
6
6
6
6
6
62,490
62,233
62,301
62,405
62,841
277
262
753
50
1,504
262
1,521
567
820
391
2,859
2,462
2,752
2,295
2,550
867
861
921
981
997
66,846
67,414
67,442
66,612
68,421
10,732
10,732
10,732
10,732
10,732
400
400
400
400
400
7,212
7,225
7,238
7,249
7,263
Apr 7 ...........................
14...........................
2 1 ...........................
2 8 ...........................
62,216
62,904
64,015
64,020
6 762,216
6 762,904
6 63,394
6 63,659
621
361
176
217
88
718
3,731
2,759
3,170
2,995
1,026
1,085
1,164
1,197
67,249
67,049
68,529
69,018
10,732
10,732
10,732
10,732
400
400
400
400
7,274
7,290
7,297
7,310
May 5^.........................
12 p .........................
19 p .........................
26 p .........................
65,316
64,185
65,148
64,971
1,273
264
618
207
802
25
985
1,274
2,789
2,305
2,754
2,488
1,216
1,324
826
871
70,262
67,897
69,861
69,706
10,732
10,332
10,332
10,332
400
400
400
400
7,331
7,350
7,360
7,381
Week ending—
1971—Mar. 3 ...........................
10...........................
17...........................
2 4 ...........................
31...........................
Apr.
End of month
1971—Mar.................................
Apr.................................
MayP..............................
Wednesday
For notes see opposite page.
6
6
6
6
64,043
63,921
64,530
64,764
JUNE 1 9 7 1 □ BANK RESERVES AND RELATED ITEMS
A 5
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued
(In millions of dollars)
Factors absorbing reserve funds
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
2,402
2,189
2,269
1,290
616
592
625
615
33,019
42,206
44,579
47,000
50,609
53,591
Treas
ury
For
eign
Other
F.R.
ac
counts 3
Other2
Other
F.R.
lia
bilities
and
capital*
Member bank
reserves
With
F.R.
Banks
Cur
rency
and
coin 5
Period or date
Total
Averages of daily figures
71 9
1,531
1.547
920
353
408
808
1,191
1,428
756
656
522
683
291
902
360
1,194
250
154
164
150
225
146
495
231
429
451
458
458
53,490
54,125
54,699
54,736
54,931
55,063
55,864
57,013
544
495
450
451
457
459
453
427
1,440
1,065
1,147
1,058
1,070
1,042
890
849
182
165
191
177
141
142
149
145
845
801
763
830
750
747
721
735
56,192
55,754
56,123
56,716
57,155
445
465
467
499
506
1,028
1,025
783
1,047
1,112
155
153
139
148
173
55,719
56,000
56,300
56,213
56,110
469
467
463
465
475
924
1,044
547
743
806
56,428
56,971
56,880
56,610
489
497
502
506
56,715
57,164
57,266
57,165
56,304
56,592
57,393
248
292
493
739
11,473
12,812
16,027
17,391
1,029
389
83
-2 0 4
- 1 ,1 0 5
2,192
16,688
18,747
19,568
20,753
22,484
23,071
2,215
2,255
2,253
2,275
2,300
2,249
2,256
2,265
786
778
718
752
690
138
136
141
121
162
1,048
807
945
1,338
519
507
499
502
483
509
507
11,473
12,812
16,027
17,391
. 1939—Dec.
. 1941—Dec.
. 1945—Dec.
. 1950—Dec.
2,595
3,972
4,262
4,507
4,737
4,960
19,283
22,719
23,830
25,260
27,221
28,031
. 1960—Dec.
. 1965—Dec.
. 1966—Dec.
. 1967—Dec.
.1968—Dec.
.1969—Dec.
23,105
22,703
23,170
23,353
23,719
23,593
23,416
23,925
4,805
4,864
4,958
4,996
5,106
5,108
5,142
5,340
27,910
27,567
28,128
28,349
28,825
28,701
28,558
29,265
.1970—May
.............June
.............July
.............Aug.
.............Sept.
.............Oct.
........... Nov.
.............Dec.
2,109
2,232
2,227
2,194
2,244
24,938
24,710
24,601
24,814
25,235
5,550
5,170
5,085
5,071
5,173
30,488
29,880
29,686
29,885
30,408
.1971—Jan.
.............Feb.
.............Mar.
.............Apr.
.............May?
768
732
742
698
694
2,321
2,379
2,139
2,141
2,198
24,522
24,011
24,897
24,691
24,817
5,020
5,393
5,058
4,791
5,123
29,542
29,404
29,955
29,482
29,940
148
162
141
140
828
727
760
704
2,281
2,208
2,112
2,166
24,486
24,381
25,199
25,108
5,184
5,244
4,739
5,049
29,670
29,625
29,938
30,157
.Apr. 7
...........14
1,035
1,314
1,248
1,045
154
167
162
187
714
689
697
677
2,262
2,299
2,148
2,225
25,497
24,703
25,344
25,254
5,283
5,381
5,018
4,994
30,780
30,084
30,362
30,248
.M ay
858
1,322
805
201
162
208
794
730
676
2,255
2,246
2,302
25,932
24,752
25,494
5,124
5,283
5,207
31,056
30,035
30,701
Week ending—
.1971—Mar.
3
..................10
......................... 17
......................... 24
......................... 31
....... 21
...........28
5
....... 12
...........19
....... 26®
E n d o f m onth
.1971—Mar.
.............Apr.
......... May®
Wednesday
55,897
56,270
56,363
56,220
56,294
469
469
460
479
481
960
1,203
363
926
858
114
134
134
146
201
740
745
718
669
794
2,355
2,402
2,103
2,180
2,255
24,655
24,549
25,671
24,373
25,932
5,022
5,396
5,060
4,792
5,124
29,677
29,945
30,731
29,165
31,056
56,864
57,102
56,846
56,713
503
504
512
508
824
772
1,470
1,401
163
148
150
133
1,015
755
715
683
2,363
2,081
2,137
2,195
23,922
24,108
25,128
25,827
5,185
5,244
4,739
5,051
29,107
29,352
29,867
30,878
. Apr. 7
........... 14
57,008
57,382
57,306
57,373
519
500
507
505
493
1,112
1,224
887
148
161
195
156
685
687
646
671
2,313
2,149
2,197
2,241
27,559
23,988
25,878
25,985
5,292
5,381
5,037
4,994
32,851
29,369
30,915
30,979
.May
1 Includes Federal agency obligations.
2 Beginning with 1960 reflects a minor change in concept; see Feb.
1961 B u l l e t i n , p . 164.
8 Beginning Apr. 16, 1969, “ Other F.R. assets” and “Other F.R.
liabilities and capital” are shown separately; formerly, they were
netted together and reported as “ Other F.R. accounts.”
4
Includes industrial loans and acceptances, until Aug. 21, 1959, when
industrial loan program was discontinued. For holdings o f acceptances
on Wed. and end-of-month dates, see tables on F.R. Banks on following
pages. See also note 2.
.1971—Mar.
3
................ 10
....................... 17
....................... 24
....................... 31
........21
........... 28
5*>
........12®
........ 19p
........26p
5 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.
6 Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks.
7 Reflects securities sold, and scheduled to be bought back, under
matched sale/purchase transactions.
A 6
BANK RESERVES AND RELATED ITEMS □ JUNE 1971
RESERVES AND BORROWINGS OF MEMBER BANKS
(In millions of dollars)
Reserve city banks
All member banks
New York City
Period
Reserves
Total
held
Re
quired 1 Excess
Bor
row
ings
at
F.R.
Banks
Reserves
Free
re
serves
Total
Re
held quired i Excess
City o f Chicago
Bor
row
ings
at
F.R .
Banks
Reserves
Free
re
serves
Total
Re
held quired i Excess
Bor
row
ings
at
F.R.
Banks
Free
re
serves
1939—D ec.............
1941—D ec.............
1945—D ec.............
1950—D ec.............
11,473
12,812
16,027
17,391
6 ,4 6 2
9 ,4 2 2
14,536
16,364
5,011
3,3 9 0
1,491
1,027
3
5
334
142
5,0 0 8
3 ,385
1,157
885
5,6 2 3
5 ,1 4 2
4 ,1 1 8
4 ,7 4 2
3 ,0 1 2
4 ,1 5 3
4 ,0 7 0
4 ,6 1 6
2 ,611
989
48
125
192
58
2,611
989
-1 4 4
67
1,141
1,143
939
1 ,199
601
848
924
1,191
540
295
14
8
5
540
295
14
3
1960—Dec.............
1963—De c
1964—D e c
1965—D e c
1967—D e c
1968—De c
1969—De c
19,283
20,746
21,609
22,719
25 ,2 6 0
27,221
28,031
18,527
21,198
22,267
24,915
26 ,7 6 6
2 7 ,7 7 4
756
536
411
452
345
455
257
87
327
243
454
238
765
1 ,086
669
209
168
107
-3 1 0
-8 2 9
3,6 8 7
3,951
4 ,0 8 3
4,301
5 ,0 5 2
5 ,1 5 7
5,441
3 ,6 5 8
3 ,895
4 ,0 6 2
4 ,2 6 0
5 ,0 3 4
5 ,0 5 7
5 ,3 8 5
29
56
21
41
18
100
56
19
37
35
111
40
230
259
10
19
-1 4
-7 0
-2 2
-1 3 0
-2 0 3
958
1,0 5 6
1,083
1 ,143
1,225
1,1 9 9
1,285
953
1,051
1 ,086
1 ,128
1,217
1 ,1 8 4
1,267
4
5
-3
15
8
15
18
8
26
28
23
13
85
27
-4
-2 1
-3 1
-8
-5
-7 0
-9
1970—Ma y
June...........
July............
Aug............
Sept............
Oct..............
N ov............
D ec.............
27 ,9 1 0
2 7 ,567
28,128
28,349
28,825
28,701
28,558
29,265
2 7 ,7 2 9
2 7 ,3 8 0
2 7 ,9 8 7
28 ,2 0 4
28,5 5 3
28,447
2 8 ,4 3 8
28,993
181
187
141
145
272
254
-7 9 5
-7 0 1
-1 ,2 1 7
-6 8 2
-3 3 5
-2 0 8
-3 0 5
-4 9
5 ,3 0 7
5,201
5,315
5,381
5 ,4 9 7
5 ,5 8 3
5,441
5 ,6 2 3
5 ,3 0 2
5 ,1 6 4
5 ,3 0 6
5 ,3 7 8
5 ,4 3 6
5 ,5 4 2
5 ,4 4 4
5 ,5 8 9
5
37
9
3
61
41
-3
34
176
132
269
159
117
12
60
25
-1 7 1
-9 5
-2 6 0
-1 5 6
-5 6
29
-6 3
9
1,285
1 ,2 5 0
1 ,2 9 0
1 ,298
1 ,3 1 6
1 ,3 0 7
1 ,2 8 2
1 ,329
1 ,287
1 ,247
1 ,293
1 ,3 0 4
1 ,3 1 0
1 ,3 0 9
1 ,283
1 ,322
-2
3
-3
-6
6
-2
-1
7
23
i 29
61
14
11
11
4
-2 5
3
-132
-6 7
-8
-1 3
-1 2
3
1971—Ja n
Feb.............
Mar............
Apr.............
M ay» ......
30,488 30,209
29 ,8 8 0 29 ,679
2 9 ,686 2 9 ,4 8 7
29,885 2 9 ,745
30,408 30,113
279
370
328
319
148
330
-9 1
-1 2 7
199
140
295
-120
-8
-3 5
5 ,9 7 6
5 ,8 5 4
5 ,6 6 4
5 ,6 9 0
5 ,8 3 7
5 ,9 1 7
5 ,8 1 0
5,703
5 ,6 9 6
5,791
59
44
-3 9
-6
46
40
29
51
15
113
19
15
-9 0
-2 1
-6 7
1 ,3 8 7
1,403
1,375
1 ,3 9 2
1,438
1 ,3 9 2
1 ,3 8 0
1,3 8 4
1 ,385
1 ,4 2 2
-5
23
-9
7
16
1
4
16
4
13
-6
19
-2 5
3
3
6 ...
1 3 ...
2 0 ...
2 7 ...
2 8 ,587
27,745
28,095
27,331
28 ,237
27,717
27,881
27 ,2 8 7
350
28
214
44
774
810
1,179
933
-4 2 4
-7 8 2
-9 6 5
-8 8 9
5 ,5 4 7
5 ,2 9 3
5,5 1 5
5 ,0 2 3
5 ,4 4 0
5 ,3 7 8
5 ,4 3 3
5 ,0 6 9
107
-8 5
82
-4 6
93
150
332
86
14
-2 3 5
-250
-1 3 2
1,343
1,2 6 9
1,311
1,251
1,317
1 ,2 9 2
1,312
1,243
26
-2 3
86
14
-6 0
-3 7
Nov.
4 ...
1 1 ...
1 8 ...
2 5 . ..
28 ,652
28,725
28,763
28,373
2 8 ,3 3 4
2 8 ,443
2 8 .599
28 ,2 9 7
318
282
164
76
423
445
330
436
-1 0 5
-1 6 3
-1 6 6
-3 6 0
5,571
5 ,4 8 8
5 ,5 8 8
5 ,2 6 6
5 ,475
5 ,4 6 6
5 ,5 5 8
5 ,3 2 7
96
11
22
69
30
- 6 1 ......... 89
85
-4 7
30
-1 5 0
1 ,298
1,2 9 8
1,3 0 8
1,231
1,291
1,3 1 9
1,301
1 ,237
7
-2 1
7
-6
Dec.
2 ...
9 ...
1 6 ...
2 3 ...
3 0 ...
28,875
28,718
29,038
29,298
29,843
2 8 ,4 5 8
2 8 ,5 8 2
28,918
29,0 8 8
29,4 0 9
417
136
434
455
290
399
325
270
-3 8
-1 5 4
-2 7 9
-1 1 5
164
5 ,5 4 0
5 ,3 8 7
5,671
5 ,5 7 4
5,8 4 3
5,391
5 ,4 3 8
5 ,6 3 4
5 ,6 0 2
5 ,6 9 3
149
-5 1
37
-2 8
150
60
-5 1
-2 2
-6 7
150
1 ,2 7 7
1 ,3 1 2
1 ,3 0 2
1,341
1,3 6 2
1 ,2 7 0
1,303
1,327
1 ,3 3 0
1 ,3 3 2
7
9
-2 5
11
30
6 ...
1 3 ...
2 0 ...
21...
30,611
30,242
31,029
30,172
30,035
30,210
30,937
2 9 ,8 9 0
576
32
92
282
407
277
472
354
169
-2 4 5
-3 8 0
-7 2
6 ,0 6 4
5 ,8 5 0
6,1 6 5
5 ,7 5 2
5 ,9 0 2
5 ,9 1 0
6 ,1 9 8
5 ,7 6 0
162
-6 0
-3 3
-8
91
-6 0
-1 2 5
-3 4
1 ,3 9 6
1,4 0 2
1 ,4 2 4
1,3 7 3
1,411
1,3 8 4
1,4 6 4
1,335
-1 5
18
-4 0
38
3 ...
1 0 . ..
1 7 ...
2 4 ...
29,959
2 9 ,7 6 0
30,202
29,9 1 6
29 ,7 2 2
29,5 5 5
29 ,9 0 5
29 .5 9 9
237
205
297
317
283
247
561
250
-4 6
-4 2
-2 6 4
67
5 ,7 7 5
5,6 8 5
6 ,1 1 8
5,7 7 0
5 ,7 4 2
5 ,7 5 5
6 ,0 4 3
5 ,7 3 2
33
-7 0
75
38
117
33
-7 0
-4 2
38
1,331
1,3 7 9
1 ,367
1 ,4 1 7
1,3 4 6
1,3 6 7
1,388
1,3 8 6
-1 5
12
-2 1
31
3 ...
1 0 ...
1 7 ...
2 4 ...
3 1 ...
2 9 ,5 4 2
2 9 ,4 0 4
29,955
2 9 ,4 8 2
2 9 ,9 4 0
2 9 ,3 7 2
2 9 ,3 2 2
2 9 ,6 9 0
29 .4 1 4
2 9 ,5 6 4
170
82
265
-88
-3 3 9
-2 5
-2 6 5
119
5,583
5,5 9 5
5,8 5 3
5 ,6 6 4
5,8 4 7
5 ,568
5 ,6 5 7
5 ,8 3 0
5,6 6 9
5 ,7 1 4
15
-6 2
23
-5
133
120
46
59
376
258
421
290
333
257
15
-1 8 2
-2 3
-6 4
133
1 ,387
1,355
1,4 4 7
1,3 5 4
1,3 9 0
1,4 0 2
1,367
1,419
1,365
1,379
-1 5
-1 2
28
-1 1
11
7 ...
1 4 ...
2 1 ...
2 8 ...
29 ,670
29,625
29,938
30,157
2 9 ,393
2 9 ,4 1 7
2 9 ,857
30,109
277
208
81
48
197
150
84
176
5,5 6 9
5,7 4 8
5,7 2 8
5,6 2 5
5,631
5 ,6 5 2
5 ,7 8 4
5 ,6 8 2
-6 2
96
-5 6
-5 7
46
-6 2
79
-5 6
-1 0 3
1 ,367
1,3 4 6
1,381
1,4 3 0
1,351
1,367
1 ,384
1,418
16
-2 1
-3
12
5 ...
1 2 ...
1 9 ...
2 6 » .,
30,780
30,084
30,362
30,248
30.415
2 9 ,8 5 4
3 0 ,260
30,073
365
230
174
99
306
269
5 ,9 0 7
5 ,6 5 7
5 ,9 8 6
■ 5,7 5 5
5 ,8 1 7
5 ,7 1 6
5 ,9 6 7
5,781
90
-5 9
19
-2 6
46
39
143
100
44
-9 8
-1 2 4
-1 2 6
1 ,4 4 0
1 ,4 2 4
1,4 2 6
1 ,4 4 4
1,449
1,393
1,455
1,416
-9
31
-2 9
28
20,210
120
272
201
976
888
1,358
827
607
462
425
321
-2
Week ending—
1970—May
1971—Jan.
Feb.
Mar.
Apr.
May
For notes see opposite page.
120
210
68
102
175
|
191
131
89
59
39
71
92
26
17
-1
-1
8
8
12
18
-5
-2 1
7
-2 4
18
-1 1
9
-4 3
11
30
5
-1 5
18
-4 5
38
18
—15
12
-3 9
31
18
14
14
— 15
-5 6
28
-2 5
-3
18
16
-2 1
-3
-6
41
18
-9
31
-7 0
10
44
JUNE 1971 o BANK RESERVES AND RELATED ITEMS
A 7
RESERVES AND BORROWINGS OF MEMBER BANKS— Continued
(In m illions o f dollars)
Country banks
Other reserve city banks
Reserves
Reserves
Borrow
ings at
F.R.
Banks
Borrow
ings at
F.R.
Banks
Free
reserves
Period
Free
reserves
Total
held
Required1
Excess
1,188
1,302
322
182
1,568
2,210
4,576
4,761
897
1,406
3,566
4,099
671
804
1,011
663
3
4
46
29
668
800
965
634
..............................1939—Dec.
..............................1941—Dec.
..............................1945—Dec.
..............................1950—Dec.
20
190
125
228
105
270
479
80
-1 2 2
—103
-1 6 1
-5 5
-1 8 0
-4 7 3
6,689
7,347
7,707
8,219
8,901
9,875
10,335
6,066
6,939
7,337
7,889
8,634
9,625
10,158
623
408
370
330
267
250
177
40
74
55
92
80
180
321
583
334
315
238
187
70
-1 4 4
..............................1960—Dec.
..............................1963—Dec.
..............................1964— Dec.
..............................1965—Dec.
..............................1967—Dec.
..............................1968—Dec.
..............................1969—Dec.
30
2
-4 4
-4
32
49
-5 8
42
477
489
682
424
369
338
301
264
-4 4 7
-4 8 7
-7 2 6
-4 2 8
-3 3 7
-2 8 9
-3 5 9
-2 2 2
10,340
10,267
10,449
10,496
10,605
10,492
10,619
10,765
10,192
10,122
10,270
10,344
10,432
10,326
10,437
10,576
148
145
179
152
173
166
182
189
300
267
278
183
107
101
53
28
-1 5 2
-1 2 2
-9 9
-3 1
66
65
129
161
..............................1970—May
11,962
11,712
11,651
11,789
11,837
12
-6 5
81
-3 5
76
294
268
236
119
137
-2 8 2
-3 3 3
-1 5 5
-1 5 4
-6 1
11,151
10,976
10,915
11,049
11,220
10,938
10,777
10,749
10,875
11,063
213
199
166
174
157
35
27
16
10
67
178
172
150
164
90
11,210
10,882
10,986
10,748
11,145
10,913
10,993
10,793
65
-3 1
-7
-4 5
382
442
553
397
-3 1 7
-4 7 3
-5 6 0
-4 4 2
10,487
10,301
10,283
10,309
10,335
10,134
10,143
10,182
152
167
140
127
213
204
294
450
-6 1
-3 7
-1 5 4
-3 2 3
11,215
11,383
11,313
11,215
11,188
11,326
11,343
11,206
27
57
-3 0
9
314
311
296
288
-2 8 7
-2 5 4
-3 2 6
-2 7 9
10,568
10,556
10,554
10,661
10,380
10,332
10,397
10,527
188
224
157
134
86
65
34
41
102
159
123
93
...............................................25
11,325
11,363
11,415
11,611
11,682
11,269
11,356
11,460
11,564
11,666
56
7
-4 5
47
16
301
263
294
261
245
-2 4 5
-2 5 6
-3 3 9
-2 1 4
-2 2 9
10,733
10,656
10,650
10,772
10,956
10,528
10,485
10,497
10,592
10,718
205
171
153
180
238
47
27
28
25
25
158
144
125
155
213
...............................................16
...............................................23
...............................................30
12,028
11,912
12,214
11,862
11,903
11,996
12,246
11,800
125
-8 4
-3 2
62
310
249
332
286
-1 8 5
-3 3 3
-3 6 4
-2 2 4
11,123
11,078
11,226
11,185
10,819
10,920
11,029
10,995
304
158
197
190
26
28
43
42
278
130
154
148
...............................................27
11,766
11,728
11,733
11,744
11,759
11,702
11,753
11,673
7
26
-2 0
71
253
229
380
228
-2 4 6
-2 0 3
-4 0 0
-1 5 7
11,087
10,968
10,984
10,985
10,875
10,731
10,721
10,808
212
237
263
177
30
18
46
22
182
219
217
155
............................................... 10
...............................................17
...............................................24
11,633
11,537
11,774
11,567
11,752
11,655
11,572
11,724
11,613
11,694
-2 2
-3 5
50
-4 6
58
242
244
231
245
221
-2 6 4
-2 7 9
-1 8 1
-2 9 1
-1 6 3
10,939
10,917
10,881
10,897
10,951
10,747
10,726
10,717
10,767
10,777
192
191
164
130
174
16
13
13
15
22
176
178
151
115
152
...............................................10
...............................................17
...............................................24
...............................................31
11,758
11,622
11,807
11,910
11,634
11,702
11,826
11,955
124
-8 0
-1 9
-4 5
184
127
80
98
-6 0
-2 0 7
-9 9
-1 4 3
10,976
10,909
11,022
11,192
10,777
10,696
10,863
11,054
199
213
159
138
13
6
4
14
186
207
155
124
...............................................28
12,044
11,826
11,805
11,831
11,939
11,752
11,871
11,786
105
74
-6 6
45
101
42
71
94
4
32
-1 3 7
-4 9
11,389
11,177
11,145
11,218
11,210
10,993
10,967
11,090
179
184
178
128
27
18
51
152
166
127
71
...............................................26*>
Total
held
Required i
Excess
3,140
4,317
6,394
6,689
1,953
3,014
5,976
6,458
1,188
1,303
418
232
1
96
50
7,950
8,393
8,735
9,056
10,081
10,990
10,970
7,851
8,325
8,713
8,989
10,031
10,900
10,964
100
68
22
67
50
90
6
10,978
10,849
11,074
11,174
11,407
11,319
11,216
11,548
10,948
10,847
11,118
11,178
11,375
11,270
11,274
11,506
11,974
11,647
11,732
11,754
11,913
............................................July
.......................................... Feb.
Week ending—-
i Beginning Sept. 12, 1968, amount is based on close-of-business figures for reserve period 2 weeks previous to report date.
N ote .— Averages o f daily figures. Monthly data are averages of daily
figures within the calendar month; they are not averages of the 4 or 5
weeks ending on Wed. that fall within the month. Beginning with Jan.
1964, reserves are estimated except for weekly averages.
57
....................... 1970—May
6
...............................................11
........................ 1971—Jan. 6
...............................................13
...............................................14
Total reserves held: Based on figures at close o f business through Nov
1959; thereafter on closing figures for balances with F.R. Banks and open
ing figures for allowable cash; see also note 3 to preceding table.
Required reserves: Based on deposits as o f opening o f business each day.
Borrowings a t F.R. Banks: Based on closing figures,
A 8
MAJOR RESERVE CITY BANKS □ JUNE 1971
BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions of dollars, except as noted)
Basic reserve position
Less—
Reporting banks
and
week ending—
Excess
Bor
re
serves 1 rowings
at F.R.
Banks
Net
inter
bank
Federal
funds
trans.
Related transactions with
U.S. Govt, securities dealers
Interbank Federal funds transactions
N e t-
Gross transactions
Net transactions
Per cent
of
Surplus
or
avg.
deficit required
reserves
Pur
chases
Sales
Total
two-way
trans
actions2
Loans
to
dealers3
Bor
row
ings
from
dealers4
Pur
chases
of ne t
buying
banks
Sales
o f net
selling
banks
8,384
9,573
6,735
171
161
231
534
2,811
3,246
2,174
1,543
183
135
255
275
2,629
3,110
1,919
1,268
442
852
933
895
1,642
1,360
1,401
1,264
295
504
477
284
1,347
856
924
980
1,383
1,500
1,346
869
N et
loans
Total—46 banks
1971—Apr.
7.
14.
21.
28 r
May
5.
12.
19.
26.
185
93
37
-6 2
1
8,213
9,940
9,343
65
6,200
-8,028
-9,863
-9,307
-6,328
63.5
77.2
71.8
48.8
11,183
13,232
12,759
9,817
2,970
3,293
3,417
3,617
2,799
3,132
3,186
3,083
134
136
-1 4
51
85
59
182
126
5,310
7,285
7,267
5,661
-5,261
-7,209
-7,463
-5,737
40.3
56.1
56.3
44.3
9,082
11,371
11,515
9,406
3,772
4,086
4,249
3,745
3,331
3,234
3,316
2,850
5,752
8,137
8,199
6,556
17
42
3,566
4,444
4,752
2,760
-3,556
-4,365
-4,714
-2,837
69.7
85.1
89.6
55.0
4,089
5,000
5,208
3,546
523
555
456
786
523
555
456
786
3,566
4,444
4,752
2,760
1,471
1,545
1,436
986
45
90
117
46
39
134
92
2,248
3,747
4,408
3,080
-2,240
-3,786
-4,522
-3,168
42.4
73.0
83.1
60.3
3,014
4,335
4,962
3,601
767
588
554
522
767
588
554
522
2,248
3,747
4,408
3,080
1,157
977
986
879
155
225
160
141
1,002
1
4,647
5,495
4,591
3,440
-4,473
-5,499
-4,593
-3,491
59.3
72.0
59.7
44.8
7,094
8,233
7.552
6,271
2,447
2,737
2,961
2,831
2,276
2,577
2,730
2,297
4,817
5,656
4,822
3,974
171
161
231
534
1,340
1,700
738
557
95
90
165
158
1,246
1,610
573
399
3,062
3,538
2,859
2,581
-3,021
-3,423
-2 ,9 4 0
-2,569
38.8
44 .7
37.7
33.4
6,068
7,036
6.553
5,804
3,006
3,498
3,694
3,223
2,564
2,645
2,762
2,328
3,504
4,390
3,791
3,476
442
852
933
895
485
383
415
385
140
279
316
143
345
105
98
243
1,450
1,712
1,718
1,404
-1,432
-1,713
-1,726
-1,416
116.6
138.1
137.3
109.6
2,100
1,846
396
387
400
352
335
341
1,511
1,759
2,118
1,756
114
350
1 ,768
310
1,446
92
1,156
1,491
1,337
1,154
-1,156
-1,467
-1,385
-1 ,1 6 0
87.6
115.7
104.3
89.9
1,632
2,005
1,916
1,681
476
514
580
527
431
450
523
480
1,201
3,197
3,783
2,873
2,036
-3,040
-3,785
-2,867
-2,076
48.2
59.2
44.5
31.9
5,248
6,133
5,434
4,515
2,051
2,350
2,561
2,479
1,941
2,235
2,380
1,987
3,307
3,898
3,054
2,528
115
181
492
110
1,228
1,587
646
458
95
90
165
158
1,134
1,497
481
300
1,907
2,047
1,522
1,428
-1,865
-1,956
-1,555
-1,409
28.9
30.6
24.0
4,436
5,030
4,637
4,123
2,529
2,983
3,115
2,696
2,133
2,196
2,239
1,848
2,303
2,835
2,398
2,275
397
788
876
847
421
352
367
340
140
279
316
143
280
73
51
198
17
10,100
8 in New York City
1971—Apr.
May
7.
14.
11
21.
28.
97
38
-3 4
5.
53
12.
19.
26.
751
826
737
38 outside
New York City
1971—Apr.
May
174
-4
7 ...........
14...........
21...........
28 r ........
-2 8
23
5 ...........
12...........
19...........
26...........
81
135
-3 4
48
40
-1
20
47
35
5 in City o f Chicago
1971—Apr.
May
7 ...........
14...........
21...........
28...........
5 ...........
12...........
19...........
26...........
18
-1
-9
6
-1
24
-7
12
112
112
1,556
1,393
1,201
99
114
92
99
65
32
48
45
65
32
48
45
33 others
1971—Apr.
May
157
-3
7 ...........
14...........
21...........
28 r.........
-3 4
5 ...........
12...........
19...........
26...........
-2 7
36
8
82
112
22.0
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
banks, repurchase agreements (purchases of securities from dealers
subject to resale), or other lending arrangements.
4 Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
N ote .—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.
JUNE 197 1 □ F.R. BANK INTEREST RATES
A 9
CURRENT RATES
(Per cent per annum)
Advances to and discounts for member banks
Rate on
May 31,
1971
Boston............
New Y ork.. . .
Philadelphia..
Cleveland
Richm ond.. . .
Atlanta...........
Chicago..........
St. Louis.........
Minneapolis..
Kansas C ity. .
Dallas.............
San Francisco
Previous
rate
Effective
date
4Va
4%
4%
4%
4Va
4 Va
4 Va
4Va
4 y4
43/4
4 y4
Rate on
May 31,
1971
Effective
date
5V4
Feb. 13, 1971
F e b .19,1971
Feb. 13, 1971
Feb. 13, 1971
Feb. 13, 1971
Feb. 13, 1971
F e b .13 1971
Feb. 13, 1971
Feb. 13, 1971
Feb. 13,1971
Feb. 13, 1971
Feb. 13,1971
4 y4
Advances to all others under
last par. Sec. 133
Advances under
Sec. 10(b)2
Advances and discounts under
Secs. 13 and 13a i
Federal Reserve Bank
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
51/4
5 Va
5 Va
51/4
5Va
51/4
51/4
51/4
5%
5%
5 Va
13, 1971
19, 1971
13,1971
13,1971
13, 1971
13, 1971
13, 1971
13,1971
13,1971
13, 1971
13, 1971
13, 1971
Previous
rate
Rate on
May 31,
1971
5%
5 Vi
5%
5%
6%
6Va
6Va
6%
5V4
51/2
5V2
6 Va
6V a
63/4
5Vi
5 Vi
6V a
63/a
63/a
51/2
51/2
6V a
63/4
5Vi
Effective
date
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Previous
rate
13, 1971
19,1971
13, 1971
13, 1971
26, 1971
13, 1971
13,1971
13,1971
13, 1971
13,1971
13, 1971
13, 1971
1 Discounts o f eligible paper and advances secured by such paper or by
2 Advances secured to the satisfaction of the F.R. Bank. Maximum
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
maturity: 4 months.
3 Advances to individuals, partnerships, or corporations other than
purchase. Maximum maturity: 90 days except that discounts o f certain
member banks secured by direct obligations of, or obligations fully
bankers’ acceptances and o f agricultural paper may have maturities not
guaranteed as to principal and interest by, the U.S. Govt, or any
over 6 months and 9 months, respectively.
agency thereof. Maximum maturity: 90 days.
SUMMARY OF EARLIER CHANGES
(Per cent per annum)
Effective
date
Range
(or level)—
All F.R
Banks
In effect Dec. 31, 1945
t Vi
1946—Apr. 25.............
May 10...........
t V i-l
1
F.R.
Bank
of
N .Y .
Vi
l
l
12.............
1 9
Aug. 13............
23.............
1 -11 /a
Wa
1 Va-1 Vi
1 Va
1950—Aug. 21 ............
25 .............
IV2 - I Va
1 Va
134
IVa
1953—Jan.
13/4-2
2
2
1948—Jan.
16.............
23.............
IV2
2
IVa
IV2
IV2
5 .............
1 5
Apr. 14.............
1 6
May 21.............
13^-2
1 Va
11/2-134
11/2-134
IVi
1955—Apr. 14.............
15.............
May 2 .............
Aug. 4 .............
5 .............
12.............
Sept. 9 .............
13.............
Nov. 18.............
23.............
11/2-134
H/2- I 34
134
134-214
-2 14
214
214 - 21/2
21/2
214
214
21/2
21/2
1956—Apr. 13.............
2 0
Aug. 24.............
31.............
21/ 2-3
234-3
234-3
3
234
234
3
3
1954—Feb.
134-214
2 -214
2
IVa
134
134
lVi
IV2
iVi
IVa
IVa
IVa
2
2
Range
(or level)All F.R.
Banks
F.R.
Bank
of
N.Y.
9.
23.
Nov. 15.
Dec. 2.
3 -3Vi
31/2
3 -3Vi
3
31/2
1958—Jan. 22.
24.
Mar. 7.
13.
21.
Apr. 18.
May 9.
Aug. 15.
Sept. 12.
23.
Oct. 24.
Nov. 7.
234-3
234-3
21/4-3
21/4-23/4
214
134-214
IVa
134-2
134-2
2
Effective
date
1957—Aug.
- 21/2
2 Vi
3
1965—Dec.
3
3
1967—Apr.
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
6 .....................
13.....................
4
-41/2
41/2
4i/i
4i/i
7 .....................
14.....................
Nov. 20.....................
27.....................
4
-41/2
4
- 41/2
41/2
4
4
4Vi
41/2
13/4
134
134
2
2
2
1968—Mar. 15.....................
22.....................
Apr. 19.....................
26.....................
Aug. 16.....................
30.....................
Dec. 18.....................
20.....................
41/2-5
5
5 -51/2
51/i
51/4-51/2
514
51/4-51/2
51/2
41/i
5
51/2
5i/i
51/2
51/4
5i/i
51/2
3
234
21/4
214
214
4
2 Vi
1969—Apr.
2Vi-3
3
3 -31/2
31/2
31/2-4
4
3
3
31/2
31/2
4
4
4 .....................
8 .....................
51/ 2-6
6
6
6
1970—Nov. 11.....................
13.....................
16.....................
534-6
534-6
534
6
534
534
Dec.
4
31/2
3Vi
3
3
1.....................
4 .....................
11.....................
51/2-534
51/2-534
51/2
534
51/2
51/2
14.
Aug. 12.
Sept. 9.
31/2-4
31/2-4
31/2
3 -31/2
3
1971—Jan.
1963—July 17.
26.
3 -31/2
3*/2
8 .....................
15.....................
19.....................
22.....................
29.....................
5 i/4-5i/i
514
-514
-514
5
51/4
514
514
5
5
31/2
1964—Nov. 24.
30.
3 Vi-4
4
434-5
434
5
434
4M
4%
1959—Mar.
6.
16.
May 29.
June 12.
Sept. 11.
18.
1960—June
3.
10.
t Preferential rate o f Vi o f 1 per cent for advances secured by U.S.
Govt, obligations maturing in 1 year or less. The rate o f 1 per cent was
continued for discounts o f eligible paper and advances secured by such
paper or by U.S. Govt, obligations with maturities beyond 1 year.
N ote .—Rates under Secs. 13 and 13a (as described in table and notes
above). For data before 1946, see Banking and M onetary S tatistics, 1943,
pp. 439-42 and Supplement to Section 12, p. 3.
The rate charged by the F.R. Bank o f N.Y. on repurchase contracts
against U.S. Govt, obligations was the same as its discount rate except
in the following periods (rates in percentages): 1955—May 4-6, 1.65;
2
Effective
date
31/2
4
4
Feb. 13.....................
19.....................
In effect May 31, 1971.........
5
5
Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug.
24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29,
2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July
20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3,
2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24,
28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875; 1968—Apr. 4, 5,1 1 ,1 5 ,1 6 , 5.125;
Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, 11-13, 19, 21, 24, 5.75;
July 5, 16, 5.625; Aug. 16, 19, 5.25; 1971—Jan. 21, 27, 4.75; Feb. 1-2,
4.50; 4, 11, 4.25; 16-17, 4.00; 18-19, 3.75. Mar. 1-2, 10, 12, 15-18, 24,
29-31, 3.75. Apr. 1-2, 5-6, 3.75; 13, 15, 21, 28, 4.125. May 3-6, 17, 4.125,
18-20, 4.375, 26-27, 4.50.
A 10
RESERVE AND MARGIN REQUIREMENTS □ JUNE 19 71
RESERVE REQUIREMENTS OF MEMBER BANKS
(Per cent of deposits)
Beginning July 14, 1966
Dec. 31, 1949, through July 13, 1966
Net demand
deposits 2.4
Net demand
deposits 2
Effective date 1
Central
reserve
city
banks
Re
serve
city
banks
Coun
try
banks
Time
depos
its
(all
classes
of
banks)
Effective date i
Reserve
city banks
22
18
12
1951—Jan.
Jan.
1953—July
1954—June
July
1958— Feb.
Mar.
Apr.
Apr.
1960— Sept.
Nov.
Dec.
1962— July
Oct.
23
24
19
13
14
13
1967—Mar. 2.
Mar. 16.
12
11%
1968—Jan. 1 1 ,1 8 ....
16%
17
1969—Apr. 17.............
17
17
22
21
20
191/2
19
18Vi
18
17%
I61/2
(3)
20
19
18
\VA
s16%
1966—July 14,21.
Sept. 8, 15.
11
16y2
Country
banks
Under Over Under Over
$5 mil $5 mil 55 mil $5 mil
lion
lion
lion
lion
In effect Dec. 31, 1949.
1 1 ,1 6........
25, Feb. 1
9 , 1 ..........
24, 16........
29, Aug. 1
27, Mar. 1
20, Apr. 1
17................
24...............
1...............
24...............
1...............
28...............
25, Nov. 1
Time deposits 4>s
(all classes of banks)
6 12
Sav
ings
depos
its
64
17%
13
17%
12%
13
12%
12
In effect May 31,1971.
Present legal
requirement:
Minimum.........
Maximum.........
10
22
3
7
14
10
1
5
5
21
1
30
17
20
4
23
16
5
16
28
10
6
1945—Feb.
July
1946—Jan.
1947—Jan.
1949—Mar.
1951—Jan.
1953— Feb.
1955—Jan.
Apr.
Jan.
1958—Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.
4
4
20
31
29
16
19
3
22
15
4
15
27
9
5
10
1968—Mar. 11
June
June
8
1970—May
Effective May 6, 1970.
7
5
On convertible bonds
On short sales
(T)
40
50
75
50
50
75
100
100
75
50
75
50
60
70
50
70
90
70
50
70
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
50
60
50
70
80
65
N ote .—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act o f 1934, limit the amount o f 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 o f the market value o f the collateral at the time the credit is extended; margin requirements are the difference
between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective
Mar. 11, 1968.
3
10
N ote .—All required reserves were held on deposit with F.R. Banks
June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member
banks were allowed to count part of their currency and coin as reserves;
effective Nov. 24, 1960, they were allowed to count all as reserves. For
further details, see Board’s Annual Reports.
For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
On margin stocks
3
10
rowings above a specified base from foreign banks by domestic offices
o f a member bank. For details concerning these requirements, see Regula
tions D and M and appropriate supplements and amendments thereto.
5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
6 See preceding columns for earliest effective date o f this rate.
(Per cent o f market value)
1937—Nov.
1945—Feb.
July
1946—Jan.
1947—Feb.
1949—Mar.
1951—Jan.
1953— Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
64
i*
12
121/2
MARGIN REQUIREMENTS
Ending
date
Under Over
$5 mil $5 mil
lion
lion
1970—Oct. 1.................
1 When two dates are shown, the first applies to the change at central
reserve or reserve city banks and the second to the change at country
banks. For changes prior to 1950 see Board’s Annual Reports.
2 Demand deposits subject to reserve requirements are gross demand
deposits minus cash items in process o f collection and demand balances
due from domestic banks.
3 Authority o f the Board o f Governors to classify or reclassify cities
as central reserve cities was terminated effective July 28, 1962.
4 Since Oct. 16, 1969, member banks have been required under Regula
tion M to maintain reserves against balances above a specified base due
from domestic offices to their foreign branches. Effective Jan. 7, 1971, the
applicable reserve percentage was increased from the original 10 per cent
to 20 percent. Regulation D imposes a similar reserve requirement on bor
Beginning
date
Other
time deposits
JUNE 197 1 o MAXIMUM INTEREST RATES; BANK DEPOSITS
A 11
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
Rates beginning July 20, 1966
Rates Jan. 1, 1962—July 19, 1966
Effective date
Effective date
Type of deposit
Type o f deposit
Jan. 1,
1962
Savings deposits: 1
12 months or m o r e ..
Less than 12 months.
July 17,
1963
Nov. 24,
1964
4
3*/2
Other time deposits: 2
12 months or more
6 months to 12 months
90 days to 6 months.. .
Less than 90 days........ .
(30-89 days)
4
31/z
211/2
July 20,
1966
Dec. 6,
1965
5%
1 Closing date for the Postal Savings System was Mar. 28, 1966. Max
imum rates on postal savings accounts coincided with those on savings
deposits.
2 For exceptions with respect to certain foreign time deposits, see
B u ll e tin s for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968,
p. 167.
3 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 o f withdrawal.
4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6*4
per cent on maturities o f 30-59 days and 6 l/ i per cent on maturities o f
Sept. 26,
1966
Apr. 19,
1968
Jan. 21,
1970
4%
Savings deposits............
Other time deposits:2
Multiple maturity:3
30-89 days..........
90 days-1 year. .
1 year to 2 years.
2 years and over.
Single-maturity:
Less than $100,000:
30 days to 1 year.
1 year to 2 years.
2 years and over.
$100,000 and over:
30-59 days.........
60-89 days.........
90-179 days
180 days to 1 year,
1 year or m ore. . .
4
41/2
5
5a
5
5V4
5
5%
5%
5Vz
5Y4
6
}eV4
5%
5%
53/4
(4)
(4)
6V4
1
m
60-89 days. Effective June 24, 1970, maximum interest rates on these
maturities were suspended until further notice.
N ote .—Maximum rates that may be paid by member banks are estab
lished by the Board of Governors under provisions o f Regulation Q;
however, a member bank may not pay a rate in excess o f the maximum
rate payable by State banks or trust companies on like deposits under
the laws o f 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.
DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS
(In millions of dollars)
Reserve city banks
Reserve city banks
All
member
banks
Item
New
York
City
City
of
Chicago
Country
banks
Other
Four weeks ending Mar. 24, 1971
Gross demand—T otal. . .
Interbank.......................
U.S. Govt.......................
Other..............................
Net demand 1 ...................
Time....................................
Demand balances due
from dom. banks.........
Currency and coin...........
B a la n c e s w ith F.R .
Banks..............................
Total reserves held...........
R equired .........................
E xcess .............................
Item
All
member
banks
44,164
12,225
932
31,007
26,590
22,868
7,804
1,469
242
6,093
6,163
6,711
65,312
9,390
1,917
54,005
49,649
70,865
10,797
5,066
1,077
428
138
94
2,665
1,586
10,042
11,628
69,653 Gross demand—Total.
189,181
Interbank........................ 25,728
2,840
U.S. Govt........................
1,991
3,911
64,822
159,542
57,874 Net demand 1 ..................... 142,802
91,116
193,497
Demand balances due
from dom. banks........... 11,043
6,918
5,073
2,959 Currency and coin.............
B a la n c e s w ith F .R .
7,950
24,721
10,909 Total reserves held............ 29,794
11,641
-1 3
10,7 3 9
170
24,530
29,596
5,246
5,674
1,292
1,386
5 ,6 8 1
-7
1 ,3 8 9
-3
City
of
Chicago
Country
banks
Other
Four weeks ending Apr. 21, 1971
186,932
25,924
5,082
155,927
140,276
191,559
2 9 ,4 5 0
146
New
York
City
2 9 ,5 5 8
236
43,233
11,671
736
30,825
26,762
23,003
7,969
1,502
284
6,184
6,283
6,835
66,984
9,657
1,462
55,866
50,731
71,119
70,996
2,899
1,429
66,668
59,026
92,540
1,116
446
166
96
2,791
1,586
6,970
2,944
5,277
5,723
1,275
1,371
10,149
11,735
8,020
10,964
5 ,6 9 5
28
1 ,3 7 0
1
11 ,7 1 4
21
1 0 ,778
186
1
Demand deposits subject to reserve requirements are gross demand
N ote .—Averages of daily figures. Balances with F.R. Banks are as
deposits minus cash items in process o f collection and demand balances
o f close o f business; all other items (excluding total reserves held and
due from domestic banks.
excess reserves) are as o f opening of business.
A 12
FEDERAL RESERVE B AN K S a J U N E 1971
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday
Item
End o f month
1971
May 26
May 19
May 12
1971
May 5
Apr. 28
May 31
1970
Apr. 30
May 31
Assets
Gold certificate account.....................................................
Special Drawing Rights certificate account.................
Discounts and advances:
Member bank borrowings.............................................
Other..................................................................................
Acceptances:
Bought outright...............................................................
Held under repurchase agreements.............................
Federal agency obligations—Held under repurchase
U.S. Govt, securities:
Bought outright:
B ills................................................................................
10,075
400
10,075
400
10,075
400
10,475
400
10,475
400
10,075
400
10,475
400
11,045
400
276
270
264
261
253
282
264
210
1,274
985
25
802
718
1,051
81
1,361
90
62
40
59
89
58
58
81
53
35
64
48
56
42
39
97
137
8
27,237
27,011
26,521
26,643
26,259
27,237
26,321
22,211
N o tes..............................................................................
34,307
3,220
34,299
3,220
34,180
3,220
34,180
3,220
34,180
3,220
34,307
3,220
34,180
3,220
32,233
2,863
Total bought outright.....................................................
Held under repurchase agreements.............................
i 64,764
168
i 64,530
521
i 63,921
264
i 64,043
1,136
i 63,659
353
i 64,764
63,721
57,307
Total U.S. Govt, securities................................................
64,932
65,051
64,185
65,179
64,012
64,764
63,721
57,307
Total loans and securities.......... .......................................
66,347
9,929
139
66,281
11,212
140
64,268
10,527
139
66,257
10,910
136
64,826
11,341
136
65,927
9,188
139
63,858
9,990
136
58,800
8,935
118
94
148
490
94
148
444
94
148
943
34
148
898
34
148
879
94
148
546
34
148
851
510
210
346
87,898
89,064
86,858
89,519
88,492
86,799
86,156
80,574
Bank premises......................................................................
Other assets:
Denominated in foreign currencies.............................
IMF gold deposited 2 .....................................................
All other............................................................................
Total assets............................................................................
Liabilities
50,517
50,466
50,539
50,200
49,907
50,535
49,778
47,096
25,985
887
156
25,878
1,224
195
23,988
1,112
161
27,559
493
148
25,827
1,401
133
25,494
805
208
24,752
1,322
162
23,041
1,198
128
148
523
148
498
148
539
148
537
148
535
148
528
148
582
210
578
Total deposits.......................................................................
27,699
27,943
25,948
28,885
28,044
27,183
26,966
25,155
Deferred availability cash items.......................................
Other liabilities and accrued dividends...........................
7,441
542
8,458
559
8,222
532
8,121
570
8,346
510
6,779
558
7,166
544
6,052
607
Total liabilities.................................................. ..................
86,199
87,426
85,241
87,776
86,807
85,055
84,454
78,910
Capital paid in .....................................................................
Surplus...................................................................................
Other capital accounts........................................................
723
702
274
723
702
213
722
702
193
721
702
320
721
702
262
724
702
318
722
702
278
684
669
311
Total liabilities and capital accounts..............................
87,898
89,064
86,858
89,519
88,492
86,799
86,156
80,574
Contingent liability on acceptances purchased for
foreign correspondents...................................................
Marketable U.S. Govt, securities held in custody for
foreign and international accounts 3 ............................
242
243
244
237
235
253
236
231
19,531
18,905
18,514
17,405
17,080
19,382
16,954
9,754
F.R. notes..............................................................................
Deposits:
Member bank reserves...................................................
U S. Treasurer—General account...............................
Foreign...............................................................................
Other:
IMF gold deposit 2 .....................................................
All other.......................................................................
Capital accounts
Federal Reserve Notes—Federal Reserve Agents’ Accounts
F.R. notes outstanding (issued to Bank).......................
Collateral held against notes outstanding:
Gold certificate account................................................
U.S. Govt, securities.......................................................
53,727
53,708
53,559
53,396
53,446
53,802
53,453
49,984
3,250
52,025
3,250
51,975
3,250
51,975
3,250
51,955
3,250
51,955
3,250
52,025
3,250
51,955
3,327
48,025
Total collateral.....................................................................
55,275
55,225
55,225
55,205
55,205
55,275
55,205
51,352
1 See note 6 on p. A-5.
2 See note 1 (b) at top o f p. A-75.
3
This caption valid beginning Sept. 16, 1970; figures prior to that
date include both marketable and nonmarketable securities for foreign
account only.
JUNE 1971 □ FEDERAL RESERVE BANKS
A 13
STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MAY 31, 1971
(In millions o f dollars)
Total
Item
Boston
New
York
Phila
del
phia
Cleve
land
Rich
mond
Atlan
ta
Chi
cago
Minne
apolis
St.
Louis
Kan
sas
City
Dallas
San
Fran
cisco
Assets
Special Drawing Rights certif. acct----
Discounts and advances:
Secured by U.S. Govt, securities.. . .
Acceptances:
Held under repurchase agreements..
Federal agency obligations—Held
U.S. Govt, securities:
10,075
400
950
282
461
23
112
12
2,555
93
225
25
525
23
48
10
910
33
48
28
858
36
66
30
535
22
275
36
1,625
70
29
36
477
574
126
50
133
293
34
100
2
63
43
30
34
88
359
15
16
16
191
7
15
9
421
15
27
26
619
14
23
18
1,016
49
66
36
*
3
6
5
33
8
64
48
64
48
164,764
3,162 16,392
3,419
4,957
4,769
3,220 10,683
2,408
1,256
2,508
2,946
9,044
65,927
3,338
16,930
3,553
4,959
4,832
3,293
10,805
2,408
1,256
2,511
2,957
9,085
12,649
139
628
2
1,996
8
628
3
818
16
870
13
1,517
17
2,060
17
593
13
458
15
799
18
1,223
9
1,059
8
94
148
546
4
9
5
6
14
3
2
4
5
12
39
2 25
148
120
5
All other...............................................
25
37
38
52
75
17
10
48
21
64
Total assets...............................................
91,210
4,619 22,125
4,820
6,858
6,748
5,753
14,731
3,440
1,963
3,869
4,889
11,395
51,485
2,873
12,284
2,997
4,164
4,575
2,538
9,015
1,982
893
1,927
1,991
6,246
25,494
805
208
1,014
35
7
6,966
60
4 93
1,128
61
8
1,738
49
14
1,293
54
8
1,541
102
10
3,666
33
23
883
24
5
626
27
4
1,143
63
7
1,612
185
9
3,884
112
20
148
949
*
148
483
2
8
150
4
1
1
2
278
20
1,199
1,801
1,363
1,803
3,726
913
658
1,215
2,084
4,036
Cash items in process o f collection. . .
Bank premises..........................................
Other assets:
Denominated in foreign currencies..
TlV>f T7 rrr\1H
3
Liabilities
F R notes.................................................
Deposits:
Member bank reserves.......................
U.S. Treasurer—General account..
Foreign..................................................
Other:
I M F <r/YlH
All other
3
..................................
Total deposits...........................................
27,604
1,056
7,750
Deferred availability cash items..........
Other liabilities and accrued dividends
9,819
558
583
27
1,507
137
508
28
699
42
676
39
1,246
27
1,640
89
468
19
362
12
620
36
698
24
812
78
Total liabilities.........................................
89,466
4,539 21,678
4,732
6,706
6,653
5,614
14,470
3,382
1,925
3,798
4,797
11,172
188
185
74
37
36
15
66
63
23
38
36
21
49
47
43
108
105
48
24
24
10
17
16
5
31
30
10
40
39
13
92
88
43
4,619 22,125
4,820
6,858
6,748
5,753
14,731
3,440
1,963
3,869
4,889
11,395
5 66
13
23
13
17
38
8
6
11
14
32
Capital accounts
Capital paid in .........................................
Surplus.......................................................
Other capital accounts..........................
724
702
318
Total liabilities and capital accounts.. 91,210
Contingent liability on acceptances
purchased for foreign correspond-
253
34
33
13
12
Federal Reserve Notes—Federal Reserve Agents’ Accounts
F.R. notes outstanding (issued to
53,802
3,034 12,991
3,092
4,325
4,701
2,726
9,283
2,066
930
1,996
2,137
Collateral held against notes out
standing:
Gold certificate account....................
U.S. Govt, securities..........................
3,250
52,025
250
500
2,840 12,600
300
2,900
510
3,900
530
4,250
2,900
1,000
8,450
155
1,980
950
2,075
5
2,180
Total collateral........................................
55,275
3,090 13,100
3,200
4,410
4,780
2,900
9,450
2,135
950
2,075
2,185
1 See note 6 on p. A-5.
2 After deducting $69 million participations o f other F.R. Banks.
3 See note 1 (b) to table at top o f p. A-75.
4 After deducting $115 million participations o f other F.R. Banks.
5 After deducting $187 million participations of other F.R. Banks.
N ote .— Some figures for cash items in process of collection and for
member bank reserves are preliminary.
A 14
OPEN MARKET ACCOUNT □ JUNE 1971
TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions of dollars)
Outright transactions in U.S. Govt, securities, by maturity
Treasury bills
Total
Others within 1 year
1-5 years
Month
Gross
pur
chases
Gross
sales
1970—Apr.
May,
June,
July.
Aug.
Sept.
O ct..
Nov.
Dec.,
1,124
2,225
2,659
1,626
1,127
2,657
245
2,871
3,414
747
835
1,612
744
106
2,367
183
1,391
2,280
1971—Jan..
Feb.,
Mar.
Apr.
1,515
5,832
3,142
2,229
1,547
5,153
2,523
1,298
Redemp
tions
244
641
308
134
327
240
50
Gross
pur
chases
Gross
sales
1,124
2,017
2,449
1,626
1,127
2,474
245
2,715
2,883
747
835
1,612
744
106
2,367
183
1,391
2,280
1,515
5,347
2,600
2,033
1,547
5,153
2,523
1,298
Outright transactions in U.S. Govt, securities—Continued
Over 10 years
5-10 years
Redemp
tions ‘
Gross
pur
chases
244
641
17
23
308
134
17
Gross
pur
chases
1970—Apr___
M ay. . .
June. . .
July.. . .
Aug---Sept___
Oct.......
N o v ....
D e c.. . .
Gross
sales
16
37
M a r .. . .
A pr.. . .
Gross
sales
- 1 ,6 9 2
150
16
61
23
113
386
16
48
189
205
62
-3 6 0
121
1971— J a n .. . .
Feb___
Gross
pur
chases
Exch.
or ma
turity
shifts
-36
74
16
1 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers’ acceptances.
Exch.,
maturity
sihifts,
or
redemp
tions
-9,4 1 4
-21
37
5
327
Repurchase
agreements
(U.S. Govt,
securities)
Net
change
in U.S.
Govt,
secur
ities
Gross
pur
chases
Gross
sales
3,685
953
905
2,008
3,181
3,906
3,465
3,863
5,109
3,,338
i;,299
905
2,,008
2\,852
3;,861
3;,353
4;,125
5|,334
723
799
407
882
1,351
28
40
1,218
908
2,298
4,183
6 ,5 6 1 c
5,085
2,,298
4!,183
5,,242
6, ,404
-3 5 9
679
1,698
-4 3 9
Gross
pur
chases
Exch.
Gross
sales
167
146
maturity
shifts
11,106
-1 2 9
90
6,362
80
365
-6,712
- 3 ,7 3 2
174
263
119
4,092
240
50
Month
Exch.
or ma
turity
shifts
Gross
sales
Federal
agency
obliga
tions
(net re
purchase
agree
ments)
Bankers’
acceptances
Out
right,
net
6
-10
Under
repur
chase
agree
ments,
net
34
-34
-15
49
-49
31
50
5
-4
3
21
-27
-61
*
1
21
2
30
811
702
397
887
1,407
-1 4
13
-50
34
1,204
819
85
-3 5 7
673
1,968
-7 0 7
-5
186
-186
Net
change1
-8 5
101
N ote .—Sales, redemptions, and negative figures reduce System hold
ings; all other figures increase such holdings.
CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS
(In millions o f U.S. dollar equivalent)
End o f
period
Total
Pounds
sterling
1968—Dec..............
1969—D e c .............
2,061
1,967
1,444
1,575
8
1
3
*
1970— Feb..............
Mar..............
A p r .............
M a y ...........
J u n e ...........
July.............
1,179
1 169
1,101
510
690
290
280
680
408
265
257
215
207
199
199
180
180
180
580
306
161
154
1
1
1
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
80
*
1
1
*
*
Sept..............
O c t .............
N o v ............
D ec..............
1971—Jan...............
Feb...............
186
107
Austrian
schillings
Belgian
francs
*
*
Canadian
dollars
Danish
kroner
French
francs
433
199
German
marks
Italian
lire
Japanese
yen
Netherr
lands
guilders
Swiss
francs
165
60
1
125
1
1
4
3
3
4
159
157
93
94
94
95
96
96
97
98
98
801
801
805
205
400
1
1
1
1
1
1
1
1
I
1
1
3
3
3
*
*
*
*
*
*
*
*
*
*
11
15
14
3
3
4
4
4
99
100
1
1
*
5
5
JUNE 1971 □ FEDERAL RESERVE BANKS; BANK DEBITS
A 15
MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions of dollars)
End o f month
Wednesday
1971
1971
Item
Discounts and advances—T otal.
Within 15 days...........................
16 days to 90 days.....................
91 days to 1 year.......................
May 26
May 19
May 12
May 5
Apr. 28
May 31
Apr. 30
1,274
1,273
985
984
25
24
802
800
716
715
1,051
1,048
3
81
79
1,454
1,352
102
148
58
1
Acceptances—T otal..
Within 15 days.. . .
16 days to 90 days.
91 days to 1 y e a r..
U.S. Government securities—T otal.
Within 15 days*................................
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....................................
1970
1
1
2
1
54
48
101
12
47
46
139
95
44
47
41
64,971
3,904
12,736
17,910
23,645
5,896
880
65,148
4,509
12,333
17,893
23,641
5,892
880
64,185
5,693
12,153
15,581
23,736
6,142
880
65,316
6,712
12,097
15,749
23,736
6,142
880
64,020
4,549
13,457
15,256
23,736
6,142
880
111
2
May 31
102
56
42
62
49
44
30
64,764
1,944
13,760
18,639
23,645
5,896
880
63,721
4,308
12,579
16,076
23,736
6,142
880
57,307
1,623
10,532
14,006
25,249
5,277
620
12
12
1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity o f the agreements.
BANK DEBITS AND DEPOSIT TURNOVER
(Seasonally adjusted annual rates)
Debits to demand deposit accounts1
(billions of dollars)
Turnover of demand deposits
Period
Leading SMSA’s
6 others2
Total 232
SMSA’s
(excl.
N.Y.)
226
other
SMSA’s
Total
233
SMSA’s
N.Y.
4,4 2 2 .0
4,249.4
4,366.0
4,324.3
4,770.6
4,668.1
4,899.8
4,824.0
5,016.1
2,417.9
2,460.0
2,443.3
2,5 0 8 .2
2,478.8
2,502.9
2,497.4
2,420.1
2,480.1
5,742.3
5,766.4
5,770.3
5 ,883.6
5,779.9
5,883.9
5,880.5
5,709.9
5,8 8 0 .3
3,324.4
3,306.4
3,327.0
3,375.3
3,301.1
3,381.0
3,383.0
3,289.8
3,400.2
72.8
73.4
73.1
73.1
75.7
75.3
78.1
75.6
77.0
4 ,8 2 5 .9
5,477.4
5,309.7
5,356.8
2,4 7 5 .2
2,550.4
2,522.6
2,617.0
5 ,884.2
6,058.0
r6 , 133.5
6,322.3
3 ,409.0
3,507.6
r3,610.9
3,705.3
76.4
82.2
79.6
80.6
Total
233
SMSA’s
N.Y.
10,164.2
10,015.7
10,136.3
10,207.8
10,550.5
10,552.0
10,780.2
10,533.9
10,896.5
1971—Jan................................... 10,710.1
Feb.................................. 11,535.4
Mar................................. 1 1 ,4 4 3 .2
Apr.................................. 11,679.1
1970—Apr.................................
M ay................................
June................................
July................................
Aug.................................
Sept.................................
Oct..................................
N ov.................................
Dec.................................
1 Excludes interbank and U.S. Govt, demand deposit accounts.
2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.
N ote .—Total SMSA’s includes some cities and counties not designated
as SMSA’s.
Leading SMSA’s
6 others2
Total 232
SMSA’s
(excl.
N.Y.)
226
other
SMSA’s
149.7
150.6
149.3
145.3
162.8
161.0
175.9
168.5
170.6
75.8
78.4
77.5
79.4
77.9
77.9
78.4
75.8
76.7
52.1
53.3
52.7
53.6
52.5
53.0
53.4
51.6
52.4
42.5
43.0
42.7
43.1
42.2
42.8
43.2
41.8
42.6
168.3
191.3
183.5
185.6
77.3
80.1
76.8
79.3
52.8
54.2
53.4
54.5
42.9
43.9
44.1
44.7
For description of series, see Mar. 1965 B u l l e t in , p. 390.
The data shown here differ from those shown in the Mar. 1965 B u lletin
because they have been revised, as described in the Mar. 1967 B u ll e tin ,
p. 389.
A 16
U.S. CURRENCY □ JUNE 1971
DENOMINATIONS IN CIRCULATION
(In millions o f dollars)
Coin and small denomination currency
Total
in cir
cula
tion 1
Total
Coin
$1 2
$2
$5
$10
$20
Total
$50
$100
$500
1919,
1941 .
1945.
1947.
7,598
11,160
28,515
28,868
5,553
8,120
20,683
20,020
590
751
1,274
1,404
559
695
1,039
1,048
36
44
73
65
1,019
1,355
2,313
2,110
1,772
2,731
6,782
6,275
1,576
2,545
9,201
9,119
2,048
3,044
7,834
8,850
460
724
2,327
2,548
919
1,433
4,220
5,070
191
261
454
428
425
556
801
782
20
24
7
5
32
46
24
17
1950,
1955.
1958.
1959,
27,741
31,158
32,193
32,591
19,305
22,021
22,856
23,264
1,554
1,927
2,182
2,304
1,113
1,312
1,494
1,511
64
75
83
85
2,049
2,151
2,186
2,216
5,998 8,529
6,617 9,940
6,624 10,288
6,672 10,476
8,438
9,136
9,337
9,326
2,422
2,736
2,792
2,803
5,043
5,641
5,886
5,913
368
307
275
261
588
438
373
341
4
3
3
3
12
12
9
5
1960.
1961 .
1962.
1963.
1964.
32,869
33,918
35,338
37,692
39,619
23,521
24,388
25,356
26,807
28,100
2,427
2,582
2,782
3,030
3,405
1,533
1,588
1,636
1,722
1,806
88
92
97
103
111
2,246
2,313
2,375
2,469
2,517
6,691
6,878
7,071
7,373
7,543
10,536 9,348
10,935 9,531
11,395 9,983
12,109 10,885
12,717 11,519
2,815
2,869
2,990
3,221
3,381
5,954
6,106
6,448
7,110
7,590
249
242
240
249
248
316
300
293
298
293
3
3
3
3
2
10
10
10
4
4
1965.
1966.
1967.
1968.
1969.
42,056
44,663
47,226
50,961
53,950
29,842
31,695
33,468
36,163
37,917
4,027
4,480
4,918
5,691
6,021
1,908
2,051
2,035
2,049
2,213
127
137
136
136
136
2,618
2,756
2,850
2,993
3,092
7,794
8,070
8,366
8,786
8,989
13,369
14,201
15,162
16,508
17,466
12,214
12,969
13,758
14,798
16,033
3,540 8,135
3,700 8,735
3,915 9,311
4,186 10,068
4,499 11,016
245
241
240
244
234
288
286
285
292
276
3
3
3
3
3
4
4
4
4
5
1970—Apr.............
May ...........
June...........
July............
Aug............
Sept............
Oct.............
N ov............
D ec.............
53,034
53,665
54,351
54,473
54,669
54,795
55,021
56,381
57,093
37,012
37,509
37,994
37,959
38,042
38,082
38,192
39,284
39,639
6,053
6,084
6,128
6,145
6,170
6,193
6,213
6,251
6,281
2,105
2,134
2,157
2,132
2,142
2,168
2,181
2,242
2,310
136
136
136
136
136
136
136
136
136
2,920
2,953
2,983
2,943
2,942
2,964
2,975
3,068
3,161
8,646
8,744
8,837
8,743
8,743
8,747
8,761
9,090
9,170
17,152
17,458
17,753
17,861
17,909
17,875
17,926
18,497
18,581
16,022
16,157
16,357
16,513
16,627
16,712
16,829
17,097
17,454
4,446
4,488
4,567
4,621
4,654
4,668
4,694
4,781
4,896
11,075
11,173
11,298
11,404
11,487
11,562
11,656
11,839
12,084
226
225
223
221
220
219
217
216
215
266
264
262
260
259
257
255
254
252
3
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
1971--Jan.............. 55,345
Feb............. 55,611
Mar............ 56,304
Apr............. 56,592
38,081
38,298
38,785
38,917
6,254
6,266
6,303
6,360
2,190
2,178
2,200
2,206
136
136
136
136
2,971
2,972
3,011
3,001
8,673 17,857
8,753 17,994
8,835 18,300
8,826 18,388
17,264
17,313
17,519
17,675
4,809 11,983
4,822 12,022
4,892 12,160
4,917 12,294
214
213
212
210
251
249
248
246
3
3
3
3
4
4
4
4
End o f period
Large denomination currency
$1,000 $5,000 $10,000
2 Paper currency only; $1 silver coins reported under coin.
1 Outside Treasury and F.R. Banks. Before 1955 details are slightly
overstated because they include small amounts o f paper currency held
by the Treasury and the F.R. Banks for which a denominational break
N ote .—Condensed from Statement of United States Currency and
Coin, issued by the Treasury.
down is not available.
KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION
(Condensed from Circulation Statement o f United States Money, issued by Treasury Department. In millions o f dollars)
Held in the Treasury
Kind o f currency
G old........................................................................................
Gold certificates....................................................................
Federal Reserve notes.........................................................
Treasury currency—Total..................................................
Standard silver dollars....................................................
Fractional coin.................................................................
United States notes.........................................................
In process o f retirement 4..............................................
Total, out
standing, As security
against
Treasury
Apr. 30,
gold and
cash
1971
silver
certificates
10,732
(10,475)
53,453
7,329
(10,475)
485
6,225
323
297
Total—Apr. 30, 1971........................................................ 571,514
Mar. 31, 1971......................................................... 5 71,000
Apr. 30, 1970......................................................... 5 67,544
(10,475)
(10,464)
(11,045)
1 Outside Treasury and F.R. Banks. Includes any paper currency held
outside the United States and currency and coin held by banks. Esti
mated totals for Wed. dates shown in table on p. A-5.
2 Includes $148 million gold deposited by and held for the International
Monetary Fund.
3 Consists o f credits payable in gold certificates, the Gold Certificate
Fund—Board of Governors, FRS.
4 Redeemable from the general fund o f the Treasury.
2 257
For
F.R.
Banks
and
Agents
162
91
1
3,673
264
3
83
5
263
509
483
546
310,474
Currency in circulation 1
Held by
F.R.
Banks
and
Agents
10,474
10,463
11,044
3,938
3,751
2,920
1971
1970
Apr.
30
Mar.
31
Apr.
30
49,618
6,974
49,389
6,914
46,386
6,648
482
5,878
317
297
482
5,821
315
297
482
5,572
294
301
56,592
56,304
53,034
5 Does not include all items shown, as gold certificates are secured by
gold. Duplications are shown in parentheses.
N ote .—Prepared from Statement o f United States Currency and Coin
and other data furnished by the Treasury. For explanation o f currency
reserves and security features, see the Circulation Statement or the Aug.
1961 B u ll e t in , p. 936.
JUNE 1 97 1 □ MONEY STOCK
A 17
MEASURES OF THE MONEY STOCK
(In billions of dollars)
N ot seasonally adjusted
Seasonally adjusted
Month or week
Mi
(Currency plus
demand deposits)
M2
Mz
(M 2 plus deposits
(M i plus time
deposits at coml. at nonbank thrift
institutions)2
banks other tahn
large time C D ’s) 1
Mz
Mi
Mi
(Currency plus
demand deposits)
(Mi plus time
(M2 plus deposits
deposits at coml. at nonbank thrift
banks other than
institutions)2
large time C D ’s) 1
1967—D ec..................................
1968—D ec..................................
1969—Dec..................................
183.1
197.4
203.6
345.6
378.2
387.1
528.5
572.6
588.4
188.6
203.4
209.8
350.1
383.0
392.0
533.3
577.5
593.5
1970—May.................................
June.................................
July..................................
Aug..................................
Sept..................................
Oct...................................
N ov..................................
D ec...................................
209.2
209.6
210.6
211.8
212.8
213.0
213.5
214.6
396.4
398.6
401.9
406.1
409.6
412.1
414.5
419.0
600.8
604.1
609.1
614.7
619.7
623.9
628.2
634.6
205.3
207.8
209.0
208.7
211.4
213.0
215.3
221.1
393.4
396.9
400.5
403.1
408.2
412.3
415.4
424.1
597.6
602.8
607.9
611.3
618.0
624.0
628.6
640.0
1971—Jan...................................
Feb...................................
Mar..................................
Apr...................................
Mayp...............................
214.8
217.3
219.4
221.1
224.1
423.0
430.8
437.6
442.0
447.4
642.1
654.0
664.8
673.7
682.5
221.3
215.5
217.4
222.2
219.9
428.9
428.4
436.3
444.3
444.4
648.4
651.3
663.8
676.1
679.1
Week ending—
1971—Apr. 28.........................
219.0
440.3
219.2
441.7
May
5 .........................
12.........................
19.........................
2 6 .........................
220.6
223.1
224.6
225.4
442.9
446.1
448.0
449.4
220.0
220.4
219.2
218.3
443.1
444.5
443.7
443.3
June
2 ..........................
225.4
450.4
221.7
447.4
COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions of dollars)
Seasonally adjusted
N ot seasonally adjusted
Commercial banks
Commercial banks
Month
or
week
Cur
rency
D e
mand
depos
its
Time and savings
deposits
C D ’s 3
Other
Total
N on
bank
thrift
institu
tions 4
Cur
rency
D e
mand
depos
its
Time and savings
deposits
C D ’s 3
Other
N on
bank
thrift
institu
tions 4
U.S.
Govt,
depos
its 5
Total
1967—D ec......................
1968—D ec......................
1969—Dec......................
40 .4
43.4
46 .0
142.7
154.0
157.7
21.0
24.0
11.2
162.5
180.8
183.4
183.5
204.8
194.6
183.0
194.4
201.3
41.2
44.3
46.9
147.4
159.1
162.9
20.6
23.6
11.1
161.5
179.6
182.1
182.1
203.2
193.2
183.1
194.6
201.5
5 .0
5 .0
5.6
1970—May....................
June....................
July.....................
Aug.....................
Sept.....................
Oct......................
N ov.....................
D ec......................
47.7
47.8
48.1
48.2
48.2
48.5
48.7
48.9
161.6
161.9
162.5
163.7
164.6
164.5
164.8
165.7
13.2
13.2
16.9
19.0
21.7
23.2
23.9
26.0
187.1
189.0
191.3
194.2
196.8
199.1
201.1
204.4
200.3
202.2
208.2
213.2
218.5
222.2
225.0
230.4
204.4
205.5
207.2
208.7
210.1
211.9
213.6
215.6
47.3
47.7
48.3
48.3
48.2
48.5
49.2
50.0
158.0
160.1
160.7
160.4
163.1
164.5
166.1
171.1
13.0
13.2
16.6
19.5
21.6
23.2
24.6
25.8
188.1
189.2
191.5
194.4
196.8
199.3
200.0
203.0
201.1
202.3
208.1
214.0
218.4
222.5
224.6
228.7
204.2
205.9
207.5
208.2
209.8
211.7
213.2
215.9
6 .4
6.5
6.8
7.1
6.8
6.1
5.6
7.1
1971—Jan.......................
Feb......................
Mar.....................
Apr......................
M ay?..................
49.2
49.6
50.0
50.5
50.9
165.5
167.7
169.4
170.5
173.2
27.1
27.4
27.8
27.3
28.0
208.2
213.5
218.3
221.0
223.4
235.3
240.9
246.1
248.3
251.3
219.2
223.2
227.2
231.6
235.0
49.1
49.2
49.5
50.1
50.5
172.1
166.3
167.8
172.1
169.4
27.0
27.4
28.0
27.1
27.6
207.6
212.9
218.9
222.1
224.5
234.5
240.3
246.9
249.2
252.1
219.6
223.0
227.5
231.9
234.8
6.6
8.3
5.4
5.5
7.8
Week ending—
1 971—Apr. 28.............
50.6
168.4
27.4
221.3
248.7
49.6
169.6
27.2
222.4
249.6
6.5
May
5 .............
12.............
19.............
26.............
50.7
50.9
50.9
50.9
169.9
172.3
173.7
174.6
27.6
27.6
27.9
28.3
222.3
223.0
223.3
224.0
249.9
250.6
251.2
252.4
50.2
50.7
50.5
50.2
169.7
169.7
168.7
168.1
27.1
27.2
27.6
28.1
223.2
224.1
224.5
224.9
250.3
251.3
252.1
253.1
8.7
8.2
8 .2
7.2
June
2 .............
50.9
174.4
28.2
225.1
253.3
50.7
170.9
28.0
225.8
253.7
6.4
1 Includes, in addition to currency and demand deposits, savings de
posits, time deposits open account, and time certificates o f deposits other
negotiable time certificates o f deposit issued in denominations o f $100,000
or more by large weekly reporting commercial banks.
2 Includes M 2, plus the average o f the beginning and end of month
deposits o f mutual savings banks and savings and loan shares.
3 Negotiable time certificates o f deposit issued in denominations of
$100,000 or more by large weekly reporting commercial banks.
4 Average of the beginning and end-of-month deposits o f mutual savings
banks and savings and loan shares.
5 At all commercial banks.
N ote .—For description of revised series and for back data, see Dec. 1970
B u l l e t in , pp. 887-909.
Average of daily figures. Money stock consists of (1) demand deposits
at all commercial banks other than those due to domestic commercial
banks and the 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 all commercial banks. Time de
posits adjusted are time deposits at all commercial banks other than those
due to domestic commercial banks and the U.S. Govt.
A 18
BANK RESERVES; BANK CREDIT □ JUNE 1971
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions o f dollars)
Deposits subject to reserve requirements2
Member bank reserves, S.A .1
S.A.
Total member
bank deposits
plus nondeposit
items 3
N .S.A.
Period
Total
Demand
N on
borrowed Required
Total
Demand
Time
and
savings
Private
U.S.
Govt.
Total
Time
and
savings
Private
U.S.
Govt.
S.A.
N.S.A.
1967—D e c
1968—D e c
1969—D e c
25.94
27.96
27.93
25.68
27.22
26.81
25.60
27.61
27.71
273.5
298.2
285.8
149.9
165.8
151.5
118.9
128.2
129.4
4 .6
4 .2
4 .9
276.2
301.2
288.6
148.1
163.8
149.7
123.6
133.3
134.4
4.5
4.1
4 .6
305.7
308.6
1970—M ay.............
June.............
July...............
Aug..............
Sept..............
Oct................
N ov..............
D ec...............
27.89
27.90
28.04
28.59
29.24
29.39
29.47
29.93
26.92
27.06
26.69
27.78
28.71
28.93
29.03
29.58
27.69
27.71
27.90
28.41
29.02
29.13
29.23
29.70
289.1
290.5
296.0
303.2
308.0
310.6
314.0
319.6
154.6
155.7
160.7
164.9
169.5
173.0
175.7
179.9
131.4
129.9
130.9
131.9
132.3
132.4
132.3
133.5
3.0
4.8
4 .4
6 .4
6.2
5.2
6.0
6.2
287.9
289.6
296.3
301.0
306.8
310.9
312.8
322.8
154.9
155.7
160.9
166.0
169.9
173.2
174.9
178.2
127.7
128.5
129.6
129.1
131.2
132.6
133.4
138.7
5 .4
5 .4
5.8
5.9
5.8
5.1
4 .6
6.0
309.3
311.1
315.8
321.9
324.5
324.8
326.7
331.2
308.2
310.3
316.1
319.8
323.2
325.1
325.6
334.4
1971—Jan................
Feb................
Mar...............
Apr...............
MayP...........
30.23
30.52
30.75
30.82
31.25
29.80
30.18
30.40
30.64
30.96
30.03
30.26
30.53
30.61
31.00
323.9
329.1
333.2
336.6
339.8
183.2
187.5
191.7
193.3
195.5
134.1
135.4
136.7
137.9
140.2
6.7
6.2
4.8
5.4
4.1
328.2
328.4
332.2
337.3
338.5
182.8
187.1
192.3
193.6
195.8
139.7
134.3
135.4
139.0
136.1
5.6
7 .0
4 .5
4.7
6.6
334.1
337.7
340.2
341.7
343.9
338.3
337.0
339.2
342.3
342.6
1 Averages o f daily figures. Data reflect percentages o f reserve require
ments made effective Apr. 17, 1969. Required reserves are based on
average deposits with a 2-week lag.
2 Averages o f daily figures. Deposits subject to reserve requirements in
clude total time and savings deposits and net demand deposits as defined
by Regulation D . Private demand deposits include all demand deposits ex
cept those due to the U.S. Govt., less cash items in process o f collection
and demand balances due from domestic commercial banks. Effective June
9, 1966, balances accumulated for repayment o f personal loans were elim
inated from time deposits for reserve purposes. Jan. 1969 data are not
comparable with earlier data due to the withdrawal from the System on
Jan. 2, 1969, o f a large member bank.
3 Total member bank deposits subject to reserve requirements, plus
Euro-dollar borrowings, bank-related commercial paper, and certain
other nondeposit items. This series for deposits is referred to as “the
adjusted bank credit proxy.”
N ote .—Due to changes in Regulations M and D , required reserves
include increases of approximately $400 million since Oct. 16, 1969.
Back data may be obtained from the Banking Section, Division o f Research
and Statistics, Board of Governors o f the Federal Reserve System, Wash
ington, D.C. 20551.
LOANS AND INVESTMENTS
(In billions of dollars)
Seasonally adjusted
Not seasonally adjusted
Securities
Date
Total 1 , 2
Securities
Loans1, 2
Total i , 2
U.S.
Govt.
Loans1, 2
Other 2
U .S.
Govt.
Other2
1960—Dec. 31.....................................................................
194.5
113.8
59.8
20.8
198.5
116.7
61.0
20.9
1961-—Dec.
1962--D e c .
1963--D e c .
1964—Dec.
1965--D e c .
1966—Dec.
1967--D e c .
1968--D e c .
1969--D e c .
30.....................................................................
31.....................................................................
31.....................................................................
31.....................................................................
31.....................................................................
3 1 .....................................................................
3 0 .....................................................................
31.....................................................................
31 3....................................................................
209.6
227.9
246.2
267.2
294.4
310.5
346.5
384.6
401.3
120.4
134.0
149.6
167.7
192.6
208.2
225.4
251.6
278.1
65.3
64.6
61.7
60.7
57.1
53.6
59.7
61.5
51.9
23.9
29.2
35.0
38.7
44.8
48.7
61.4
71.5
71.3
214.4
233.6
252.4
273.9
301.8
317.9
354.5
393.4
410.5
123.9
137.9
153.9
172.1
197.4
213.0
230.5
257.4
284.5
66.6
66.4
63.4
63.0
59.5
56.2
62.5
64.5
54.7
23.9
29.3
35.1
38.8
44.9
48.8
61.5
71.5
71.3
1970— Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 9 .....................................................................
2 7 .....................................................................
3 0 .....................................................................
2 9 .....................................................................
2 6 ......................................................................
3 0 ......................................................................
28.....................................................................
25.....................................................................
31.....................................................................
403.5
405.9
406.4
412.8
418.3
423.7
424.4
428.2
435.1
277.0
278.0
277.4
281.5
284.1
287.3
287.3
288.4
290.5
52.4
53.4
54.1
55.8
57.5
57.6
56.3
56.7
58.5
74.0
74.5
75.0
75.5
76.7
78.8
80.8
83.1
86.0
403.5
403.9
410.1
412.6
415.4
423.3
424.0
427.7
445.1
276.9
277.0
282.9
283.4
283.2
288.0
285.9
286.9
297.2
52.3
52.6
51.6
53.5
55.1
55.8
57.2
58.3
61.7
74.3
74.3
75.6
75.7
77.1
79.5
81.0
82.5
86.1
1971--Jan.
Feb.
Mar.
Apr.
May
27.....................................................................
2 4 .....................................................................
31.....................................................................
28 p ...................................................................
26p ...................................................................
438.9
444.6
448.6
448.7
453.0
292.0
295.2
295.2
294.8
297.9
58.7
59.9
61.4
60.2
60.2
88.2
89.6
92.0
93.6
94.9
438.0
440.9
446.4
448.8
450.9
289.3
290.6
293.3
294.6
297.2
61.5
61.4
61.6
60.1
58.9
87.1
88.9
91.5
94.1
94.8
1 Adjusted to exclude interbank loans.
2 Beginning June 9, 1966, about $1.1 billion of balances accumulated
for payment o f personal loans were deducted as a result o f a change in
Federal Reserve regulations.
Beginning June 30, 1966, CCC certificates o f interest and ExportImport Bank portfolio fund participation certificates totaling an estimated
$1 billion are included in “Other securities” rather than “Loans.”
3 Beginning June 30, 1969, data revised to include all bank-premises
subsidiaries and other significant majority-owned domestic subsidiaries;
earlier data include commercial banks only. Also, loans and investments
i
are now reported gross, without valuation reserves deducted, rather than
net of valuation reserves as was done previously. For a description of the
revision, see Aug. 1969 B u ll e tin , pp. 642-46.
N ote .—For monthly data 1948-68, see Aug. 1968 B u ll e tin , pp. A-94
—A-97. For a description of the seasonally adjusted series see the follow
ing B u l l e t in s : July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept.
1967, pp. 1511-17.
Data are for last Wed. 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.
JUNE 1 97 1 o BANKS AND THE MONETARY SYSTEM
A 19
CONSOLIDATED CONDITION STATEMENT
(In millions of dollars)
Assets
Liabilities
and capital
Other
secu
rities 3
Total
assets,
net—
Total
liabil
ities
and
capital,
net
Total
deposits
and
currency
Capital
and
misc.
ac
counts,
net
10,723
14,741
69,839
81,820
82,407
188,148
199,008
487,709
531,589
549,879
175,348
184,384
444,043
484,212
485,545
12,800
14,624
43,670
47,379
64,337
86,000
87,510
87,800
89.400
91,900
93.400
95,100
99,245
544.800
555,596
558.100
564.200
573,300
573.100
578,000
599,180
475.800
487,093
489.800
494,000
504.600
505,500
510,400
535,157
69.000
68,501
68.300
70.200
68,800
67.600
67.600
64,020
100,800
103,000
106,600
109,900
592.400
595.800
605.100
607.200
611.400
527,200
529.600
539.100
543.800
549.100
65.200
66.300
Bank credit
Date
Gold
stock
and
SDR
certifi
cates 1
Treas
ury
cur
rency
out
stand
ing
U.S. Treasury securities
Total
Loans,
net 2. 3
Total
Coml.
and
savings
banks
Federal
Reserve
Banks
Other4
1947—Dec.
1950—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
31.
30.
30.
31.
315
22,754
22,706
11,982
10.367
10.367
4,562
4,636
6,784
6,795
6,849
160,832 43,023
171,667 60,366
468,943 282,040
514,427 311,334
532,663 335,127
107,086
96,560
117,064
121,273
115,129
81.199
72,894
66,752
68,285
57,952
22,559
20,778
49,112
52,937
57,154
1970—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
27.
30.
29.
26.
30..
28.
25.
31.
11,800
11,767
11,800
11,800
11.500
11.500
11.500
11,132
7.000
6,986
7.000
7.000
7.100
7.100
7.100
7,149
526.100
536,845
539.300
545,400
554.800
554.500
559.300
580,899
327,000
336,860
336.400
338.100
343,800
341.400
341,600
354,447
113.100
112,475
115.100
118,000
119.000
119,700
122,600
127,207
56.000
54,742
56.800
58,300
59.000
60.400
61,500
64,814
57.100
57,714
58.300
59,600
60,000
59.300
61.100
62,142
251
27.
24.
31 p
28p
26p
11,100
11,100
11,100
11,100
7.200
7.200
7.300
7.300
7,400
574.100
577.500
586,700
588.800
593.300
346.300
347.300
350.100
350,500
354.100
127.000
127,200
129,900
128,300
128.100
64,700
64.800
65.000
63.400
62.200
62,000
61,700
64,200
64,000
64,900
300
700
800
900
900
1971—Jan.
Feb.
Mar.
Apr.
May
10,700
3,328
2,888
1,200
51
23
19
111,100
66.000
63.300
62.300
DETAILS OF DEPOSITS AND CURRENCY
Money stock
Seasonally adjusted 6
Date
Total
Cur
rency
outside
banks
D e
mand
deposits
ad
justed 7
Related deposits (not seasonally adjusted)
Time
N ot seasonally adjusted
Total
Cur
rency
outside
banks
D e
mand
deposits
ad
justed7
Total
U.S. Government
Com
Mutual Postal
mercial savings Savings
Sys
banks 2 banks 8 tem4
31..
30..
30..
31..
315.
110.500
114.600
181.500
199.600
206,800
26,100 84,400 113,597
24.600 90,000 117,670
39.600 141,900 191,232
42.600 157.000 207,347
45.400 161.400 214,689
56,411
26,476 87,121
35,249
25,398 92,272 59,246 36,314
41,071 150,161 242,657 182,243
43,527 163,820 267,627 202,786
46,358 168,331 260,992 193,533
17,746
20,009
60,414
64,841
67,459
1970—May 27..
June 30..
July 29 ..
Aug. 2 6..
Sept. 30..
Oct. 2 8 ..,
Nov. 2 5 ..
Dec. 3 1 ...
198.600
199.600
199.300
199.900
203.500
201,800
202.300
209,400
46.500
46.600
46.800
46.800
47,200
47.400
47.600
47.800
152.100
153.000
152,500
153.100
156,300
154.400
154,700
161,600
149,800
154,582
152.200
151,100
154.900
155.300
156,600
169,643
269,300
273,109
279,200
283.400
289.400
292.100
294.900
302,591
201,000
203,916
210,000
202.500
205.500
219,422
46.400
47,032
46.900
47,100
47.300
47.300
48.900
49,779
1971—Jan. 2 7 ...
Feb. 2 4 ...
Mar. 31 ,
Apr. 28 p . .
May 26p . ,
203.300
204.900
214.100
207.100
48.300
48.500
49.300
48,900
49.500
155.000
156.400
164,800
158,200
162,600
205,900
203,800
208,200
207,200
209,600
47,600
47.900
48,800
48,500
49.400
158.300
155.900
159,400
158,700
160.200
307,600
313.900
322.100
323,800
327.400
1947—Dec.
1950—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
212.100
196.200
201,614
199,100
198.200
202.200
1 Includes Special Drawing Rights certificates beginning January 1970.
2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits
accumulated for payment o f personal loans” were excluded from “Time
deposits” and deducted from “Loans” at all commercial banks. These
changes resulted from a change in Federal Reserve regulations. See table
(and notes), D eposits Accum ulated fo r Paym ent o f Personal Loans , p. A-23.
3 See note 2 on p. A-22.
4 After June 30, 1967, Postal Savings System accounts were eliminated
from this Statement.
5 Figures for this and later dates take into account the following changes
(beginning June 30, 1969) for commercial banks: (1) inclusion o f con
solidated reports (including figures for all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries) and (!) reporting
o f figures for total loans and for individual categories of securities on a
gross basis—that is, before deduction o f valuation reserves. See also note 1.
6 Series began in 1946; data are available only for last Wed. o f month.
7 Other than interbank and U.S. Govt., less cash items in process o f
collection.
3,416
2,923
For
eign,
net 9
Treas
ury
cash
hold
ings
At
coml.
At
and
F.R.
savings Banks
banks
1,682
2,518
2,179
2,455
2,683
1,336
1,293
1,344
695
596
1,452
2,989
5,508
5,385
5,273
2.400
2,641
2,600
2.400
2.400
2,600
2.500
3,148
500
439
500
500
400
500
500
431
6,200
214,100
219,500
221.900
224.400
230,622
68.300
69,193
69.200
69.300
69.900
70.200
70.500
71,969
235.000
240.400
247.000
247.900
250,800
72.600
73.500
75,100
75.900
76.600
2.500
2.500
2.500
2.300
2.300
500
500
500
500
500
8,285
7,400
8,600
8,800
6,600
6,200
8,409
9.500
7.500
5,000
8,600
8.500
870
668
1,123
703
1,312
1.300
1,005
1,000
900
1,200
1.300
800
1,156
1,200
1.400
900
1.400
900
8 Includes relatively small amounts of demand deposits. Beginning with
June 1961, also includes certain accounts previously classified as other lia
bilities.
9 Reclassification o f deposits of foreign central banks in May 1961 re
duced this item by $1,900 million ($1,500 million to time deposits and $400
million to demand deposits).
N ote .—For back figures and descriptions o f the consolidated condition
statement and the seasonally adjusted series on currency outside banks and
demand deposits adjusted, see “Banks and the Monetary System,” Section
1 of Supplement to Banking and M onetary S tatistics, 1962, and B u lletins
for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti
mated and are rounded to the nearest $100 million.
For description of substantive changes in official call reports of
condition beginning June 1969, see B ulletin for August 1969, pp.
642-46.
A 20
COMMERCIAL BANKS □ JUNE 1 97 1
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions o f dollars)
Loans and investments
Class o f bank
and date
Total
All commercial banks:
50,746
1941—Dec. 3 1 ...
1945—Dec. 31 . . . 124,019
1947—Dec. 31 5. 116,284
Loans
1.2
Deposits
Total
assets—
Securities
Total
Cash
lia
assets 3 bilities
and
U.S.
capital
Treas O ther2
ac
ury
counts4
21,714 21,808
26,083 90,606
38,057 69,221
Interbank3
Total3
Other
Bor
row
ings
Demand
D e
mand
Time
10,S)82
7,225 26,551 79,104 71,283
14,()65
7,331 34,806 160,312 150,227
9,006 37,502 155,377 144,103 12,792
240
Total
capital
ac
counts
Num
ber
of
banks
Time1
U.S.
Govt.
Other
44.,349
105 ,921
1,343 94,367
15,952
30,241
35,360
23 7,173 14,278
219 8,950 14,011
65 10,059 14,181
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
3 1 ...
3 0 ...
31 .. .
31 6.
322,661
359,903
401,262
421,597
217,726
235,954
265,259
295,547
56,163
62,473
64,466
54,709
48,772
61,477
71,537
71,341
69,119
77,928
83,752
89,984
403,368
451,012
500,657
530,665
352,287
395,008
434,023
435,577
19,770
967
21,883 1,314
24,747 1,211
27,174
735
4,992
5,234
5,010
5,054
167,751
184,066
199,901
208,870
158,806 4,859
182,511 5,777
203,154 8,899
193,744 18,360
32,054
34,384
37,006
39,978
13,767
13,722
13,679
13,661
1970—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 7 . ..
3 0 ...
2 9 . ..
26. ..
30^..
2 8 ...
25. ..
3 1 ...
417,340
423,240
425,530
430,080
436,790
439,590
442,970
461,194
290,370
296,091
296,330
297,900
301,530
301,460
302,160
313,334
52,640
51,569
53,510
55,050
55,750
57,180
58,280
61,742
74,330
75,579
75,690
77,130
79,510
80,950
82,530
86,118
78.930
85,631
74.930
78,820
85,760
78,310
82,400
93,643
516,630
529,679
520,800
529,640
543,900
539,190
546,950
576,242
413,720
432,429
422,740
429,680
447,320
440,030
446,170
480,940
22,180
26,338
22,440
22,890
26,480
24,780
24,680
30,608
690
898
1,350
1,630
1,710
1.740
1.740
1,975
5,960
8,076
7,170
8,270
8,470
6,250
5,840
7,938
183,740
192,999
181,540
182,520
190,810
185,030
189,080
209,335
201,150
204,118
210,240
214,370
219,850
222,230
224,830
231,084
23,080
18,546
19,850
20,160
18,170
20,200
21,680
19,375
40,850
41,708
41,510
41,720
42,040
42,080
42,270
42,958
13,665
13.671
13.671
13,675
13,678
13,684
13,687
13,686
1971—Jan.
Feb.
Mar.
Apr.
May
Member of
F.R. System:
1941—Dec.
1945—Dec.
1947—Dec.
2 7 ...
2 4 ...
31 p . .
28^..
26^. .
454,250
458,040
463,500
466,450
468,070
305,600
307,740
310.380
312,280
314.380
61,520
61,430
61,620
60,060
58,900
87,130
88,870
91,500
94,110
94,790
83,860
82,450
94,350
88,670
84,510
559,200
561,810
580,930
577,590
575,700
462,730
463,950
483,470
479,150
477,390
25,360
25,850
30,640
26,430
24,390
2,030
1.990
1.990
2,020
2,080
9,250
7,060
4,520
8,150
7,900
190,810
188,180
198,860
194,180
191,590
235,280
240,870
247,460
248,370
251,430
20.500
21.500
22,130
24,070
23,390
42,730
43,050
43,530
43,740
43,910
13,692
13,700
13,713
13.717
13.717
31 . . .
3 1 ...
3 1 ...
43,521
107,183
97,846
140 1,709
64 22,179
50 1,176
37,136
69,640
80,609
12,347
24,210
28,340
4
208
54
5,886
7,589
8,464
6,619
6,884
6,923
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
3 1 ...
3 0 ...
3 1 ...
31 6.
263,687
293,120
325,086
336,738
182,802
196,849
220,285
242,119
41,924
46,956
47,881
39,833
38,960
49,315
56,920
54,785
60,738
68,946
73,756
79,034
334,559
373,584
412,541
432,270
291,063
326,033
355,414
349,883
794
18,788
20,811 1,169
23,519 1,061
25,841
609
4,432
4,631
4,309
4,114
138,218
151,980
163,920
169,750
128,831 4,618
147,442 5,370
162,605 8,458
149,569 17,395
26,278
28,098
30,060
32,047
6,150
6,071
5,978
5,869
1970—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 7 ...
3 0 ...
2 9 . ..
2 6 ...
30. ..
28. ..
25. ..
3 1 ...
331,389
335,551
337,377
341,096
346,643
348,424
350,746
365,940
235,805
240,100
240,309
241,594
244,769
244,377
244,442
253,936
38,259
37,324
38,950
40,305
40,779
41,872
42,661
45,399
57,325
58,127
58,118
59,197
61,095
62,175
63,643
66,604
69,710
75,539
65,971
69,769
75,853
68,978
72,422
81,500
418,609
428,975
420,844
428,607
440,724
435,498
441,486
465,644
329,541
345,514
336,818
342.995
358,433
350.996
355,566
384,596
21,183
25,122
21,371
21,825
25,339
23,643
23,516
29,142
567
691
1,139
1,423
1,500
1.535
1.535
1,733
4,914
6,957
6,181
7,054
7,258
5,169
4,855
6,460
148,414
155,916
146,003
146,996
153,951
148,472
151,385
168,032
154,463
156,829
162,124
165,697
170,385
172,177
174,275
179,229
21,749
17,507
18,675
19,059
17,169
19,021
20,538
18,578
32,733
33,184
33,047
33,223
33,479
33,481
33,629
34,100
5,816
5,803
5,795
5,785
5,784
5,781
5,773
5,766
1971—Jan.
Feb.
Mar.
Apr.
May
2 7 ...
2 4 ...
3 1 ...
2 8 ...
2 6 ? ..
359,731
362,488
366,723
368,478
369,202
247,183
248,916
250,777
252,001
253,533
45,222
44,840
45,193
43,690
42,601
67,326
68,732
70,753
72,787
73,068
73,521
72,296
83,092
78,152
73,880
451,224
452,887
469,355
465,602
462,630
369,092
369,632
386,692
382,149
379,755
24,179
24,680
29,399
25,278
23,230
1,785
1,744
1,749
1,776
2,080
7,929
5,730
3,726
6,957
6,662
152,695
1150,712
159,983
155,728
153,165
182,504
186,766
191,835
192,410
194,860
19,557
20,440
21,107
22,983
22,237
33,950
34,213
34,658
34,799
34,944
5,761
5,754
5,751
5.747
5.747
Reserve city member:
New York City:7
1941—Dec. 3 1 ...
1945—Dec. 3 1 ...
1947—Dec. 3 1 ...
12,896
26,143
20,393
4,072 7,265
7,334 17,574
7,179 11,972
1,559
1,235
1,242
6,637
6,439
7,261
19,862
32,887
27,982
17,932
30,121
25,216
4,202
4,640
4,453
6
17
12
866
6,940
267
12,051
17,287
19,040
807
1,236
1,445
i95
30
1,648
2,120
2,259
36
37
37
18,021 19,539
22,775 78,338
32,628 57,914
5,961 23,113 68,121 61,717 10,385
6,070 29.845 138,304 129,670 13,576
7,304 32.845 132,060 122,528 12,353
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
3 1 ...
3 0 ...
3 1 ...
31 6.
46,536
52,141
57,047
60,333
35,941
39,059
42,968
48,305
4,920
6,027
5,984
5,048
5,674
7,055
8,094
6,980
14,869
18,797
19,948
22,349
64,424
74,609
81,364
87,753
51,837 6,370
60,407 7,238
63,900 8,964
62,381 10,349
467
741
622
268
1,016
1,084
888
694
26,535
31,282
33,351
36,126
17,449
20,062
20,076
14,944
1,874
1,880
2,733
4,405
5,298
5,715
6,137
6,301
12
12
12
12
1970—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 7 ...
3 0 ...
2 9 . ..
2 6 ...
3 0 . ..
2 8 . ..
2 5 . ..
3 1 ...
57,288
57,088
58,720
58,468
59,484
59,215
59,657
62,347
44,819
44,881
45,917
45,208
46,265
45,990
45,717
47,161
4,981
4,413
5,142
5,458
5,144
5,337
5,463
6,009
7,488
7,795
7,661
7,802
8,075
7,888
8,477
9,177
22,007
23,070
18,322
20,982
23,057
19,175
20,151
21,715
84,604
85,666
82,356
84,893
88,026
83,785
85,368
89,384
57,147
60,615
57,063
58,959
64,019
59,297
59,654
67,186
9,356
11,148
9,322
9,668
12,161
10,738
10,276
12,508
280
321
592
729
719
776
814
956
882
1,236
1,382
1,214
1,355
658
749
1,039
31,742
32,590
28,927
29,943
31,072
28,024
28,552
32,235
14,887
15,320
16,840
17,405
18,712
19,101
19,263
20,448
5,821
4,057
4,855
5,243
4,184
5,038
6,224
4,500
6,335
6,374
6,340
6,405
6,439
6,385
6,424
6,486
12
12
12
12
12
12
12
12
1971—Jan.
Feb.
Mar.
Apr.
May
2 7 ...
2 4 . ..
3 1 ...
2 8 ...
2 6 ...
60,658
60,791
59,912
60,115
59,029
45,791
46,610
45,457
45,741
45,441
6,011
5,378
5,683
5,316
5,007
8,856
8,803
8,772
9,058
21,274
20,393
27,111
23,718
8,581 19,816
87,437
86,749
93,161
89,486
84,885
64,712
63,848
71,345
67,750
63,973
11,270
11,367
14,672
12,261
10,254
950
919
846
920
846
1,985
879
573
1,392
1,388
29,761
29,352
33,114
30,793
28,552
20,746
21,331
22,140
22,384
22,933
4,997
5,855
5,741
6,285
6,072
6,449
6,510
6,723
6,743
6,797
12
12
12
12
12
For notes see p. A-23.
JUNE 1971 □ COMMERCIAL BANKS
A 21
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions o f dollars)
Loans and investments
Class o f bank
and date
Reserve city member (cont.):
City of Chicago: 7.8
1941—Dec. 3 1 .............
1945—Dec. 3 1 .............
1947—Dec. 3 1 .............
Total
Loans
1,2
Total
assets—
Total
Securities
lia
Cash bilities
assets3
and
U.S.
capital
ac
Treas Other
2
ury
counts4
Deposits
Interbank3
Other
Demand
Total3
D e
mand
2,760
5,931
5,088
954
1,333
1,801
1,430
4,213
2,890
376
385
397
1,566
1,489
1,739
4,363
7,459
6,866
4,057
7,046
6,402
1,035
1,312
1,217
Time
Total Num
capital ber
ac
of
counts banks
Bor
row
ings
Time1
U.S.
Govt.
Other
127
1,552
72
2,419
3,462
4,201
476
719
913
288
377
426
13
12
14
1966 Dec.
1967 Dec.
1968 Dec.
1969—Dec.
3 1 .............
3 0 .............
3 1 .............
31 6.........
11,802
12,744
14,274
14,365
8,756
9,223
10,286
10,771
1,545
1,574
1,863
1,564
1,502
1,947
2,125
2,030
2,638
2,947
3,008
2,802
14,935
16,296
18,099
17,927
12,673
13,985
14,526
13,264
1,433
1,434
1 ,535
1,677
25
21
21
15
310
267
257
175
6,008
6,250
6,542
6,770
4,898
6,013
6,171
4,626
484
383
682
1,290
1,199
1,346
1,433
1,517
11
10
9
9
1970—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 7 .............
3 0 .............
2 9 .............
26.............
3 0 .............
2 8 .............
2 5 .............
31.............
14,178
14,648
14,449
14,556
15,058
14,835
15,076
15,745
10,341
10,986
10,662
10,642
11,151
10,735
10,921
11,214
1,616
1,540
1,688
1,796
1,746
1,925
1,839
2,105
2,221
2,121
2,099
2,118
2,161
2,175
2,316
2,427
2,658
2,622
2,560
2,911
2,788
3,040
2,981
3,074
17,736
18,291
18,021
18,520
18,849
18,841
19,016
19,892
12,218
13,266
12,937
12,841
13,764
13,399
13,538
15,041
1,265
1,682
1,237
1,192
1,595
1,301
1,375
1,930
41
16
54
58
69
79
79
49
232
347
457
342
380
250
250
282
5,952
6,102
5,764
5,725
6,017
5,921
5,855
6,663
4,728
5,119
5,425
5,524
5,703
5,848
5,979
6,117
2,233
1,507
1,689
2,129
1,959
2,253
2,330
1,851
1,550
1,566
1,542
1,550
1,562
1,565
1,580
1,586
9
9
9
9
9
9
9
9
1971—Jan.
Feb.
Mar.
Apr.
May
27.............
2 4 .............
31.............
28.............
26.............
15,530
15,479
16,056
15,726
15,853
10,901
11,000
11,345
11,051
11,293
2,208
2,048
2,179
1,940
1,677
2,421
2,431
2,532
2,735
2,883
2,981
3,083
2,695
3,159
3,011
19,487
19,482
19,609
19,874
19,741
14,303
14,264
14,665
15,048
14,951
1,313
1,451
2,074
1,449
1,300
79
58
130
123
143
487
252
168
414
419
6,091
6,010
5,598
6,415
6,181
6,333
6,493
6,695
6,647
7,051
1,969
2,125
1,961
2,304
2,180
1,591
1,618
1,635
1,622
1,616
9
9
9
9
9
Other reserve city: 7,8
1941—Dec. 3 1 .............
1945—Dec. 3 1 .............
1947—Dec. 3 1 .............
15,347
40,108
36,040
7,105 6,467
8,514 29,552
13,449 20,196
1,776 8,518
2,042 11,286
2,396 13,066
24,430
51,898
49,659
22,313
49,085
46,467
4,356
6,418
5,627
104
491 12,557 4,806
30 8,221 24,655 9,760
22
405 28,990 11,423
2
1
1,967
2,566
2,844
351
359
353
3 1 ............. 95,831
3 0 ............. 105,724
3 1 ............. 119,006
31 6........ 121,324
69,464
73,571
83,634
90,896
13,040
14,667
15,036
11,944
13,326
17,487
20,337
18,484
24,228
26,867
28,136
29,954
123,863
136,626
151,957
157,512
108,804 8,593
120,485 9,374
132,305 10,181
126,232 10,663
233
310
307
242
1,633
1,715
1,884
1,575
49,004
53,288
57,449
58,923
49,341
55,798
62,484
54,829
1,952 9,471
2,555 10,032
4,239 10,684
9,881 11,464
169
163
161
157
1970— May 2 7 ............. 119,002
June 3 0 ............. 121,213
July 2 9 ............. 120,894
123,418
Sept. 3 0 ............. 125,582
Oct. 2 8 ............. 126,646
Nov. 2 5 ............. 126,943
Dec. 31............. 133,718
88,033
90,152
89,581
91,106
91,955
91,973
91,301
96,158
11,287
11,372
11,665
12,341
12,859
13,299
13,789
14,700
19,682
19,689
19,648
19,971
20,768
21,374
21,853
22,860
24,393
27,106
24,422
25,008
27,368
25,157
26,774
31,263
149,816
154,889
151,834
154,765
159.587
158,316
160,182
171,733
116,945 8,213
123,673 9,530
120,708 8,374
123,746 8,544
129,246 8,992
127,238 9,032
129,249 9,213
140,518 11,317
160
273
409
552
628
599
561
592
1,945
3,115
2,349
3,049
3,082
2,138
1,977
2,547
49,990
53,317
50,046
50,085
53,139
51,709
52,625
59,328
56,637 11,025 11,780
57,438 9,779 11,868
59,530 9,777 11,885
61,516 9,485 11,934
63,405 9,019 12,040
63,760 9,380 12,032
64,873 9,711 12,053
66,734 10,391 12,221
157
156
156
156
156
156
156
156
2 7............. 130,725
2 4 ............. 131,751
31............. 134,204
28............. 134,119
26............. 134,264
92,805
92,932
94,302
94,416
95,042
14,490
14,498
14,636
13,830
13,409
23,430
24,321
25,266
25,873
25,813
26,930
26,701
29,361
28,581
28,193
164,214
164,992
170,513
169,509
169,451
133,018
133,375
138,409
136,752
137,167
8,875
9,169
9,791
9,688
9,723
675
686
692
652
714
3,141
2,262
1,592
3,353
3,018
52,463
52,063
55,594
53,562
53,519
67,864
69,195
70,740
69,497
70,193
10,413
10,014
11,044
11,889
11,325
156
156
156
156
156
2,250 6,402
2,408 10,632
3,268 10,778
19,466
46,059
47,553
17,415
43,418
44,443
792
1,207
1,056
30
225 10,109 6,258
17 5,465 24,235 12,494
17
432 28,378 14,560
4
11
23
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1971—Jan.
Feb.
Mar.
Apr.
May
Country member: 7, 8
1941—Dec. 3 1 .............
1945—Dec. 3 1 .............
1947—Dec. 3 1 .............
12,518
35,002
36,324
5,890 4,377
5,596 26,999
10,199 22,857
12,234
12,321
12,474
12,502
12,561
1,982 6,219
2,525 6,476
2,934 6,519
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
3 1 .............
3 0 .............
3 1 .............
316..........
109,518
122,511
134,759
140,715
68,641
74,995
83,397
92,147
22,419
24,689
24,998
21,278
18,458
22,826
26,364
27,291
19,004
20,334
22,664
23,928
131,338
146,052
161,122
169,078
117,749
131,156
144,682
148,007
2,392
2,766
2,839
3,152
69
96
111
84
1,474
1,564
1,281
1,671
56,672
61,161
66,578
67,930
57,144
65,569
73,873
75,170
308
552
804
1,820
10,309
11,005
11,807
12,766
5,958
5,886
5,796
5,691
1970— May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 7 .............
3 0 .............
2 9 .............
26.............
30.............
2 8 .............
2 5 .............
31.............
140,921
142,603
143,314
144,654
146,519
147,728
149,070
154,130
92,612
94,081
94,149
94,638
95,398
95,679
96,503
99,404
20,375
19,999
20,455
20,710
21,030
21,311
21,570
22,586
27,934
28,522
28,710
29,306
30,091
30,738
30,997
32,140
20,652
22,741
20,667
20,868
22,640
21,606
22,516
25,448
166,453
170,129
168,633
170,429
174,262
174,556
176,920
184,635
143,231
147,960
146,110
147,449
151,404
151,062
153,125
161,850
2,349
2,763
2,438
2,411
2,591
2,572
2,652
3,387
86
81
84
84
84
81
81
135
1,855
2,259
1,993
2,449
2,441
2,123
1,879
2,592
60,730
63,907
61,266
61,243
63,723
62,818
64,353
69,806
78,211
78,951
80,329
81,252
82,565
83,468
84,160
85,930
2,670
2,164
2,354
2,202
2,007
2,350
2,273
1,836
13,068
13,377
13,280
13,334
13,438
13,499
13,572
13,807
5,638
5,626
5,618
5,608
5,607
5,604
5,596
5,589
1971—Jan.
Feb.
Mar.
Apr.
May
2 7 .............
2 4 .............
31.............
28.............
26^...........
152,818 97,686 22,513
154,467 98,374 22,916
156,551 99,673 22,695
158,518 100,793 22,604
160,056 101,757 22,508
32,619
33,177
34,183
35,121
35,791
22,336
22,119
23,925
22,694
22,860
180,086
181,664
186,072
186,733
188,553
157,059
158,145
162,273
162,599
163,664
2,721
2,693
2,862
2,736
2,802
81
81
81
81
135
2,316
2,337
1,393
2,145
2,296
64,380
63,287
65,677
64,958
64,913
87,561
89,747
92,260
92,679
93,518
2,178
2,446
2,361
2,505
2,660
13,676
13,764
13,826
13,932
13,970
5,584
5,577
5,574
5,570
5,570
For notes see p. A-23.
A 22
COMMERCIAL BANKS □ JUNE 1 971
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions o f dollars)
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Insured banks:
Total:
1941—Dec. 3 1 ..
1945—Dec. 3 1 ..
1947_D ec. 3 1 ..
Total
49,290
121,809
114,274
Loans
1, 2
Total
assets—
Total
Securities
Cash
lia
assets3 bilities
and
Other
U.S.
capital
2
ac
Treas
ury
counts4
21,259 21,046
25,765 88,912
37,583 67,941
Deposits
Interbank3
Other
Total3
Bor
row
ings
Demand
D e
mand
Time
l
Time
6,984 25,788 76,820 69,411
10,(554
7,131 34,292 157,544 147,775
13,!383
8,750 36,926 152,733 141,851 12,615
Total
capital
ac
counts
54
U.S.
Govt.
Other
1,762
23,740
1,325
41,298
80,276
92,975
15,699
29,876
34,882
10
215
61
Num
ber
of
banks
6,844 13,426
8,671 13,297
9,734 13,398
1963—Dec. 2 0 .. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077
1964—Dec. 3 1 .. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664
1965—Dec. 3 1 .. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149
443
733
923
6,712 140,702 110,723
6,487 154,043 126,185
5,508 159,659 146,084
3,571 25.277 13,284
2,580 27,377 13,486
4,325 29,827 13,540
1966—Dec. 3 1 .. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497
1967—Dec. 30 .. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598
1968—Dec. 31 .. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427
881
1,258
1,155
4,975 166,689 159,396
5,219 182,984 183,060
5,000 198,535 203,602
4,717 31,609 13,533
5,531 33,916 13,510
8,675 36,530 13,481
1969—June 306. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889
Dec. 3 1 .. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858
800
695
5,624 192,357 200,287 14,450 38,321 13.464
5,038 207,311 194,237 18,024 39,450 13.464
1970—June 3 0 .. 421,141 294,963 51,248 74,929 84,885 526,484 431,094 26,017
Dec. 3 1 .. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233
829
1,874
8,040 191,752 204,456 18,215 41,159 13,478
7,898 208,037 231,132 19,149 42,427 13,502
National member:
1941—Dec. 3 1 ..
1945—Dec. 3 1 ..
1947—Dec. 3 1 ..
35
1,088
14,013
795
23,262
45,473
53,541
8,322
16,224
19,278
1963—Dec. 2 0 .. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863
1964—Dec. 3 1 .. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521
1965—Dec. 31 .. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064
146
211
458
3,691
3,604
3,284
76,836
84,534
92,533
1966—Dec. 3 1 .. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588
1967—Dec. 30 .. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877
1968—Dec. 31 .. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117
27,571
69,312
65,280
11,725 12,039
13,925 51,250
21,428 38,674
3,806 14,977
4,137 20,144
5,178 22,024
43,433
90,220
88,182
39,458
84,939
82,023
6, 786
9, 229
8,375
4
78
45
3,640
4,644
5,409
5,117
5,017
5,005
61,288
70,746
85,522
1,704 13,548
1,109 15,048
2,627 17,434
4,615
4,773
4,815
437
652
657
3,035 96,755 93,642
3,142 106,019 107,684
3,090 116,422 122,597
3,120 18,459
3,478 19,730
5,923 21,524
4,799
4,758
4,716
1969—June 306. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324
Dec. 3 1 .. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299
437
361
3,534 113,134 120,060 9,895 22,628
3,049 121,719 114,885 12,279 23,248
4,700
4,668
1970—June 3 0 .. 247,862 176,376 28,191 43,295 51,942 312,480 254,261 14,947
Dec. 31 .. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051
393
982
5,066 113,296 120,559 13,051 24,106
4,740 122,298 137,592 13,100 24,868
4,637
4,620
15
621
8,166
381
13,874
24,168
27,068
4,025
7,986
9,062
1
130
9
2,246
2,945
3,055
1,502
1,867
1,918
State member:
1941—Dec. 3 1 ..
1945—Dec. 3 1 ..
1947—Dec. 31 ..
15,950
37,871
32,566
6,295 7,500
8,850 27,089
11,200 19,240
2,155 8,145
1,933 9,731
2,125 10,822
24,688
48,084
43,879
22,259
44,730
40,505
3, 739
4, 411
3,978
1963—Dec. 2 0 ..
1964—Dec. 3 1 ..
1965—Dec. 3 1 ..
72,680
77,091
74,972
46,866 15,958 9,855 15,760
51,002 15,312 10,777 18,673
51,262 12,645 11,065 15,934
91,235
98,852
93,640
78,553
86,108
81,657
5,655
6,486
5,390
236
453
382
2,295
2,234
1,606
40,725
44,005
39,598
29,642
32,931
34,680
1,795
1,372
1,607
7,506
7,853
7,492
1,497
1,452
1,406
1966—Dec. 3 1 ..
1967—Dec. 30 ..
1968—Dec. 3 1 ..
77,377
85,128
89,894
54,560 11,569 11,247 19,049 99,504
58,513 12,649 13,966 22,312 111,188
61,965 12,581 15,348 22,803 116,885
85,547
95,637
98,467
6,200
6,934
8,402
357
516
404
1,397
1,489
1,219
41,464
45,961
47,498
36,129
40,736
40,945
1,498
1,892
2,535
7,819
8,368
8,536
1,351
1,313
1,262
1969—June 306.
Dec. 31 ..
88,346
90,088
64,007 9,902 14,437 26,344 119,358
65,560 10,257 14,271 24,313 119,219
93,858
94,445
9,773
9,541
285
248
1,341
1,065
45,152
48,030
37,307
35,560
4,104
5,116
8,689
8,800
1,236
1,201
1970—June 3 0 ..
Dec. 3 1 ..
88,404
94,760
64,439 9,133 14,832 23,598 117,209 91,967 10,175
66,963 11,196 16,600 25,472 125,460 101,512 11,091
299
750
1,891
1,720
42,620
45,734
36,983
42,218
4,457
5,478
9,078
9,232
1,166
1,147
Nonmember:
1941—Dec. 31 ..
1945—Dec. 3 1 ..
1947—Dec. 31 ..
5,776
14,639
16,444
3,241 1,509
2,992 10,584
4,958 10,039
1,025
1,063
1,448
2,668
4,448
4,083
8,708
19,256
20,691
7,702
18,119
19,340
262
4
53
1,560
149
4,162
10,635
12,366
3,360
5,680
6,558
6
7
7
959
1,083
1,271
6,810
6,416
6,478
1963—Dec. 2 0 ..
1964—Dec. 3 1 ..
1965—Dec. 31 ..
42,464
46,567
52,028
23,550 13,391
26,544 13,790
30,310 14,137
5,523
6,233
7,581
5,942
7,174
7,513
49,275
54,747
60,679
44,280
49,389
54,806
559
658
695
61
70
83
726
649
618
23,140
25,504
27,528
19,793
22,509
25,882
72
99
91
4,234
4,488
4,912
7,173
7,262
7,320
1966—Dec. 31 ..
1967—Dec. 30 ..
1968—Dec. 3 1 ..
56,857
64,449
73,553
33,636 13,873 9,349
37,675 15,146 11,629
43,378 16,155 14,020
7,777
8,403
9,305
65,921
74,328
84,605
59,434
67,107
76,368
709
786
908
87
89
94
543
588
691
28,471
31,004
34,615
29,625
34,640
40,060
99
162
217
5,342
5,830
6,482
7,384
7,440
7,504
1969—June 306.
Dec. 31 ..
78,032
82,133
48,358 14,341 15,333 8,696
51,643 14,565 15,925 10,056
88,802
94,453
78,610
83,380
791
1,017
78
85
749
924
34,070
37,561
42,921
43,792
451
629
7,004
7,403
7,528
7,595
1970—June 3 0 ..
Dec. 3 1 ..
84,875
92,399
54,149 13,924 16,802 9,346 96,794
57,489 16,039 18,871 11,208 106,457
84,865
93,998
894
1,091
137
141
1,083
1,438
35,837
40,005
46,913
51,322
708
571
7,975
8,326
7,675
7,735
For notes see p. A-23.
129
244
JUNE 1971 o COMMERCIAL BANKS
A 23
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions o f dollars)
Deposits
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Securities
Total
Loans
1, 2
U.S.
Treas
ury
Other
2
Total
assets—
Total
lia
Cash
assets3 bilities
and
capital Total3
ac
counts 4
Interbank3
Other
Bor
row
ings
Demand
D e
mand
Time
Time
l
U.S.
Govt.
Noninsured
nonmember:
1941 Dec. 31...........
1945 Dec. 31...........
1947 Dec. 315.........
1,457
2,211
2,009
455
318
474
761
1,693
1,280
241
200
255
763
514
576
2,283
2,768
2,643
1,872
2,452
2,251
329
181
177
1963—Dec. 2 0 ...........
1964 Dec. 31...........
1965—Dec. 31...........
1,571
2,312
2,455
745
1,355
1,549
463
483
418
362
474
489
374
578
572
2,029
3,033
3,200
1,463
2,057
2,113
190
273
277
83
86
85
1967—Dec. 30...........
1968—Dec. 31...........
2,638
2,901
1,735
1,875
370
429
533
597
579
691
3,404
3,789
2,172
2,519
285
319
1969—June 30 6 ........
Dcc. 3 1 . . . . . .
2,809
2,982
1,800
2,041
321
310
688
632
898
895
3,942
4,198
2,556
2,570
1970—June 30...........
Dec. 31...........
3,043
3,079
2,073
2,132
321
304
650
642
746
934
4,140
4,365
2,280
2,570
Total nonmember:
1941—Dec. 31...........
1945—D ec. 31...........
1947—D ec. 31...........
7,233
16,849
18,454
3,696
3,310
5,432
2,270
12,277
11,318
1,266
1,262
1,703
1963 Dec. 2 0 ........... 44,035 24,295
1964—Dec. 31........... 48,879 27,899
1965—Dec. 31........... 54,483 31,858
13,854
14,273
14,555
Total
capital
ac
counts
Num
ber
of
banks
Other
1,2 91
1,905
18 1,392
253
365
478
13
4
4
329
279
325
852
714
783
17
23
17
832
1,141
1,121
341
534
612
93
99
147
389
406
434
285
274
263
58
56
15
10
1,081
1,366
733
767
246
224
457
464
211
197
298
316
81
41
15
16
1,430
1,559
731
638
290
336
502
528
209
197
321
375
69
101
36
40
1,247
1,298
606
756
331
226
549
532
193
r184
3,431 10,992 9,573
4,962 22,024 20,571
4,659 23,334 21,591
457
425
439
190
5,504
14,101
167 13,758
3,613
6,045
7,036
18
11
12
1,288
1,362
1,596
7,662
7,130
7,261
5,885
6,707
8,070
6,316 51,304 45,743
7,752 57,780 51,447
8,085 63,879 56,919
749
931
972
144
156
168
743 23,972 20,134
672 26,645 23,043
635 28,649 26,495
165
198
238
4,623
4,894
5,345
7,458
7,536
7,583
15,516 12,162
16,585 14,617
185
1967 Dec. 30...........
1968—Dec. 31...........
67,087 39,409
76,454 45,253
8,983 77,732 69,279
9,997 88,394 78,887
1,071
1,227
147
150
603 32,085 35,372
701 35,981 40,827
408
441
6,286
6,945
7,651
7,701
1969—June 30 6........
Dec. 31...........
80,841 50,159 14,662 16,021 9,594 92,743 81,166
85,115 53,683 14,875 16,556 10,950 98,651 85,949
1,090
1,333
160
126
765 35,500 43,652
940 39,120 44,430
741
965
7,506
7,931
7,737
7,792
1970—June 30...........
Dec. 31...........
87,919 56,222 14,245 17,452 10,092 100,934 87,145
95,478 59,621 16,342 19,514 12,143 110,822 96,568
1,215
1,466
207
243
1,119 37,084 47,520 1,038
1,478 41,303 52,078
796
8,523
8,858
7,868
r7,919
1 See table (and notes) at the bottom o f this page.
2 Beginning June 30, 1966, loans to farmers directly guaranteed by
CCC were reclassified as securities, and Export-Import Bank portfolio
fund participations were reclassified from loans to securities. This reduced
Total loans and increased “Other securities” by about $1 billion. Total
loans include Federal funds sold, and beginning with June 1967 securities
purchased under resale agreements, figures for which are included in
“ Federal funds sold, etc.,” on p. A-24.
3 Reciprocal balances excluded beginning with 1942.
4 Includes items not shown separately. See also note 1.
5 Beginning with Dec. 31, 1947, the series was revised; for description,
see note 4, p. 587, M a y 1964 B u lle tin .
6 Figure takes into account the following changes beginning June 30,
1969: (1) inclusion o f consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic
subsidiaries) and (2) reporting o f figures for total loans and for individual
categories o f securities on a gross basis—that is, before deduction of
valuation reserves—rather than net as previously reported.
7 Regarding reclassification as a reserve city, see Aug. 1962 B ulletin,
p. 993. For various changes between reserve city and country status in
1960-63, see note 6, p. 587, May 1964 Bulletin.
8 Beginning Jan. 4, 1968, a country bank with deposits o f $321 million
was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve
city bank in Chicago with total deposits o f $190 million was reclassified as
a country bank.
N ote.—D ata 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.
For the period June 1941-June 1962 member banks include mutual
savings banks as follows: three before Jan. 1960; two through Dec. 1960,
and one through June 1962. Those banks are not included in insured
commercial banks.
Beginning June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business.
Comparability o f figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
Data for national banks for Dec. 31, 1965, have been adjusted to make
them comparable with State bank data.
Figures are partly estimated except on call dates.
For revisions in series before June 30, 1947, see July 1947 B ulletin,
pp. 870-71.
DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions o f dollars)
Class o f
bank
All commercial. . . .
Insured.................
National member
State member.. . .
All member.............
Dec. 31,
1968
Dec. 31,
1969
1,216
1,216
730
207
937
1,131
1,129
688
188
876
June 30,
1970
945
943
536
178
714
Dec. 31,
1970
804
803
433
147
580
Class of
bank
All member—Cont.
Other reserve city................
Country..................................
All nonmember........................
Noninsured...........................
N ote .—These hypothecated deposits are excluded from Time deposits
and Loans at all commercial banks beginning with June 30, 1966, as
shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal
ment loans), and in the table at the bottom o f p. A -18. These changes
Dec. 31,
1968
332
605
278
278
Dec. 31,
1969
304
571
255
253
2
June 30,
1970
222
492
230
229
2
Dec. 31,
1970
143
437
224
223
1
resulted from a change in Federal Reserve regulations. See June 1966
B ulletin, p. 808.
These deposits have not been deducted from Time deposits and Loans
for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24
and A-25 (IPC only for time deposits).
A 24
COMMERCIAL BANKS □ JUNE 1 97 1
LOANS AND INVESTMENTS BY CLASS OF BANK
(In millions of dollars)
Other loans 1
Class o f
bank and
call date
Total
loansi
and
invest
ments
Total: 2
1947—Dec. 3 1 .. 116,284
Fed
eral
funds
sold,
etc. 2
Total
3,4
Investments
For
To
U.S. Treasury
purchasing
financial
securities 6
or
carrying
institutions
Com
Other,
securities
Real
to
mer Agries
culcial
in- Other
tate
diand
tur- To
al 5 bro
Bills
vidin
uals3
dus
kers To Banks Others
Total and Notes Bonds
and others
trial
certifi
deal
cates
ers
1,220
State
and
local Other
secu
govt. rities
5
secu
rities
947 69,221
9,982 6,034 53,205 5,276 3,729
1969—Dec. 31 io 422,728 9,928 286,750 108.443 10,329 5,739 4,027 2,488 15,062 70,020 63,256 7,388 54,709
1970—June 30 .. 424,184 11,193 285,843 108,361 11,233 3,972 3,565 2,522 14,393 70,550 64,180 7,068 51,569
Dec. 31 .. 461,998 16,241 297,897 112,486 11,155 6,332 3,536 2,660 15,855 72,492 65,807 7,574 61,742
59,183 12,158
62,975 12,604
69,637 16,481
All insured:
1941—Dec. 31 .. 49,290
1945—Dec. 3 1 .. 121,809
1947—Dec. 31 .. 114,274
38,057 18,167 1,660
830
21,259 9,214 1,450 614 662
25,765 9,461 1.314 3,164 3,606
37,583 18,012 1,610 823 1,190
9,393
115
5,723
4,773
21,046
3,159 16,899 3,651 3,333
4,505
4,677 2,361 1,132
,912 21,526 16,045 51,342 3,873 3,258
9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621
40
49
114
1969—Dec. 31 io 419,746 9,693 284,945 107,685 10.314 5,644 3,991 2,425 14,890 69,669 63,008 7,319 54,399
1970—June 30 .. 421,141 10,867 284,096 107,567 11,215 3,886 3,541 2,457 14,248 70,252 63,921 7,009 51,248
Dec. 3 1 .. 458,919 15,942 2\196,064 111,540 11,141 6,207 3,516 2,581 15,713 72,302 65,556 7,507 61,438
Member—Total:
1941—Dec. 31 .. 43,521
1945—Dec. 3 1 .. 107,183
1947—Dec. 31 .. 97,846
972 594 598
18,021 8,671
22,775 8,949 855 3,133 3,378
32,628 16,962 1,046 811 1,065
58,840 11,869
62,619 12,311
69,301 16,174
3,494
19,539
3,653
971 3,007 15,561 3,090 2,871
3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815
7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105
39
47
113
1969—Dec. 31 io 337,613 7,356 235,639 96,095 6,187 5,408 3,286 2,258 14,035 53,207 48,388 6,776 39,833
1970—June 3 0 .. 336,266 8,267 232,548 95,190 6,626 3,749 2,920 2,228 13,452 53,215 48,729 6,439 37,324
Dec. 3 1 .. 366,520 12,677 241,840 97,954 6,538 5,963 3,028 2,345 14,688 54,600 49,829 6,895 45,399
N ew York C ity:
1941—Dec. 3 1 .. 12,896
1945—Dec. 3 1 .. 26,143
1947—Dec. 3 1 .. 20,393
4,072 2,807
7,334 3,044
7,179 5,361
1969—Dec. 31 io 60,333
1970—June 3 0 .. 57,088
Dec. 31 .. 62,347
802 47,503 28.189
553 44,328 26,692
774 46,386 27.189
3,695
2,444
4,174
2,760
5,931
5,088
732
954
1,333
760
1,801 1,418
211
73
52
233
87
1969—Dec. 31 io 14,365
1970—June 3 0 .. 14,648
Dec. 3 1 .. 15,745
215 10,556 6,444
383 10,603 6,635
475 10,739 6,502
337
379
356
262
141
191
C ity o f Chicago:
1941—Dec. 3 1 ..
1945—Dec. 3 1 ..
1947—Dec. 3 1 ..
O ther reserve city:
7,105 3,456
8,514 3,661
13,449 7,088
412 169
2,453 1,172
545 267
48
114 194
427 1,503
170 484
1969—Dec. 31 *<> 121,628 3,021 88,180 37,701 1,386
1970—June 3 0 .. 121,435 3,473 86,901 37,502 1,478
Dec. 3 1 .. 133,861 6,007 90,293 38,627 1,428
878 1,300
588 1,151
909 1,322
C ountry:
659
648
818
20
42
23
183
471
227
1969—Dec. 31 io 141,286 3,318 89,401 23,762 4,739
1970—June 3 0 .. 143,095 3,858 90,716 24,361 5,088
Dec. 3 1 .. 154,568 5,420 94,421 25,637 5,052
498
337
524
947
887
828
1941—Dec. 3 1 .. 12,518
1945—Dec. 3 1 .. 35,002
1947—Dec. 3 1 .. 36,324
Nonmember:
1947— Dec. 3 1 ..
5,890 1,676
5,596 1,484
10,199 3,096
614
20
156
1969—Dec. 31 io 85,115 2,572 51,111 12,348 4,141
1970—June 3 0 .. 87,919 2,926 53,296 13,171 4,606
Dec. 31. 95,478 3,564 56,058 14,532 4,617
329
223
369
741
645
507
18,454
5,432
1,205
1 Beginning with June 30, 1948, figures for various loan items are
shown gross (i.e., before deduction of valuation reserves); they do not
add to the total and are not entirely comparable with prior figures. Total
loans continue to be shown net. See also note 10.
2 Includes securities purchased under resale agreements. Prior to June 30,
1967, they were included in loans—for the most part in loans to “Banks.”
Prior to Dec. 1965, Federal funds sold were included with “Total” loans
and loans to “Banks.”
3 See table (and notes), D eposits Accum ulated fo r Payment o f Personal
Loans, p. A-23.
111
7,265
522
311 1,623 5,331
287 272 17,574 3,910 3,325 10,339
564 238 11,972 1,642
558 9,772
776 1,047 4,547 3,835 3,595 1,807 5,048
741 1,228 4,178 3,728 3,773 1,528 4,413
686 1,169 3,741 3,883 3,907 1,622 6,009
300
205
225
1941—Dec. 3 1 .. 15,347
1945—Dec. 3 1 .. 40,108
1947— Dec. 3 1 .. 36,040
123
80
32
26
93
47,227 7,558
50,108 8,019
55,662 10,942
22
36
46
186 1,219
152 1,154
138 1,284
4
17
15
95
51
149
842
862
823
942
864 1,015
1,527
1,459
3,147
1,430
40 4,213
26 2,890
4
5
1,823
1,881
3,827
256
1,600
367
153
1,022
749 1,864
248 2,274
354 1,564
331 1,540
346 2,105
1,508
6,467
295
751 5,421
855 387 29,;552 8,016 5,653 15,883
1,969 351 20,196 2,731 1,901 15,563
182
181
213
193
204
185
1,837
1,861
2,055
192
261
372
956 820
1,126 916
1,342 1,053
16,625 1,859
17,733 1,955
19,771 3,089
110 481 3,787 1,222 1,028
1,528
4,377
707 359 26.999 5,732 4,544 16,722 1,342 1,067
1,979 224 22,857 3,063 2,108 17,687 2,006 1,262
148 2,263 28,824 26,362 1,858 21,278
159 2,139 29,127 26,858 1,759 19.999
239 2,648 30,005 27,585 1,903 22,586
2,266
830
629
604
6,192
788
6,847 948
7,757 1,420
876 6,006 19,706 17,569 2,757 11,944
689 5,981 19,536 17,156 2,820 11,372
798 7,015 19,848 17,322 3,024 14,700
2
729
606
638
1,061
231 1,028 16,813 14,868
294
941 17,336 15,451
316 1,168 17,891 15,978
109 11,318 2,179
612 14,875
629 14,245
679 16,342
22,572 4,718
23,667 4,855
26,079 6,062
1,219 7,920
1,073
625
11,956 4,600
12,876 4,585
13,975 5,538
4 Breakdowns o f loan, investment, and deposit classifications are not
available before 1947; summary figures for 1941 and 1945 appear in the
table on pp. A-20—A-23.
5 Beginning with June 30, 1966, loans to farmers directly guaranteed
by CCC were reclassified as “Other securities,” and Export-Import Bank
portfolio fund participations were reclassified from loans to “Other
securities.” This increased “Other securities” by about $1 billion.
6 Beginning with Dec. 31, 1965, components shown at par rather than
at book value; they do not add to the total (shown at book value) and are
not entirely comparable with prior figures. See also note 10.
For other notes see opposite page.
JUNE 1 97 1 □ COMMERCIAL BANKS
A 25
RESERVES AND LIABILITIES BY CLASS OF BANK
(In millions of dollars)
Demand deposits
Class o f
bank and
call date
Total: 3
1947—Dec. 3 1 . .. .
1969—Dec. 31 io ..
1970—June 3 0 . . . .
Dec. 3 1 . . . .
All insured:
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
Re
serves
with
F.R.
Banks
D e
Bal
mand
Cur ances
de
rency with
posits
and
do
ad
coin mestic
banks7 justed 8
17,796 2,216 10,216 87,123
Interbank
U.S.
D o
For Govt.
mestic7 eign9
11,362
1,430
1,343
State
and
local
govt.
6,799
Time deposits
Certi
fied
and
offi
cers’
checks,
etc.
2,581
IPC
84,987
21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413
21,526 7,090 18,208 158,241 23,759 2,579 8,076 17,062 10,254 165,683
23,319 7,046 23,136 173,912 27,442 3,166 7,938 17,763 8,540 183,032
735
898
1,975
158
70
54
1969—Dec. 31 i o . . 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401
1970—June 30----- 21,526 7,061 17,577 156,743 23,624 2,393 8,040 16,955 10,073 164,725
Dec. 3 1 . . . . 23,319 7,028 22,332 172,351 27,235 2,998 7,898 17,636 8,352 182,048
695
829
1,874
Member—Total:
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 .. ..
1947—Dec. 3 1 . . . .
1969—Dec. 31io ..
1970—June 30 . . . .
Dec. 3 1 . . . .
12,396
15,811
17,797
1,087
1,438
1,672
6,246 33,754
7,117 64,184
6,270 73,528
9,823
12,566
11,236
9,714
671 1,709
12,333 1,243 22,179
10,978 1,375 1,176
3,677
5,098
6,692
240
36,544
72,593
83,723
12,396 1,358 8,570 37,845
15,810 1,829 11,075 74,722
17,796 2,145 9,736 85,751
673 1,762
1,248 23,740
1,379 1,325
U.S.
Govt. State
and
Inter and
bank Postal local
Sav govt.
ings
3,066
4,240
5,504
1,077
2,585
2,559
1,009
2,450
2,401
33,061
62,950
72,704
140
64
50
21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483
21,526 5,476 10,617 121,562 22,809 2,313 6,957 12,930 9,179
23,319 5,445 13,744 133,169 26,260 2,882 6,460 13,250 7,309
145,992
133,807
147,473
609
691
1,733
111
IPC 3
866 34,383
Bor Capi
tal
row ac
ings counts
65 10,059
211 13,221 181,443 18,360 39,978
202 17,148 187,713 18,546 41,708
463 23,225 208,201 19,375 42,958
59
103
111
492 15,146
496 29,277
826 33,946
10 6,844
215 8,671
61 9,734
211 13,166 180,860 18,024 39,450
202 17,088 187,166 18,215 41,159
462 23,150 207,519 19,149 42,427
50
99
105
418 11,878
399 23,712
693 27,542
4 5,886
208 7,589
54 8,464
186 9,951 140,308 17,395 32,047
168 13,142 144,233 17,507 33,184
406 18,406 160,998 18,578 34,100
N ew York C ity:
1941— Dec. 3 1 ___
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
5,105
4,015
4,639
93
111
151
141 10,761
78 15,065
70 16,653
1969—Dec. 31 i o . .
1970—June 3 0 . . . .
Dec. 3 1 . . . .
4,358
4,621
4,683
463
429
436
455 21,316
606 17,479
1,308 19,770
1941—Dec. 31___
1945—Dec. 3 1___
1947—Dec. 3 1___
1,021
942
1,070
43
36
30
298
200
175
2,215
3,153
3,737
1969—Dec. 31 io. „
1970—June 3 0 . . . .
Dec. 31___
869
885
1,148
123
96
126
150
135
160
1941—Dec. 3 1 . . . .
1945— Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
4,060
6,326
7,095
1969—Dec. 31 io ..
1970—June 30----Dec. 31___
3,595
607
866
3,535 1,105 6,940
267
3,236 1,217
319
237
290
450
1,338
1,105
11,282
15,712
17,646
6
17
12
694
1,236
1,039
1,168
1,136
1,171
6,605
5,628
3,286
28,354
25,825
27,779
268
321
956
1,027
1,292
1,196
8
127
20 1,552
21
72
233
237
285
34
66
63
2,152
3,160
3,853
5,221
4,683
5,120
1,581
1,607
1,853
96
75
77
175
347
282
268
326
240
229
178
210
6,273
5,597
6,213
425
494
562
2,590 11,117
2,174 22,372
2,125 25,714
4,302
6,307
5,497
54
491
110 8,221
405
131
1,144
1,763
2,282
286
611
705
9,044 1,787
8,784 1,728
9,710 1,748
3,456 44,169
2,810 40,393
3,731 44,093
10,072
9,021
10,805
590 1,575
509 3,115
512 2,547
3,934
3,798
3,793
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
2,210
4,527
4,993
526
796
929
3,216 9,661
4,665 23,595
3,900 27,424
790
1,199
1,049
2
225
8 5,465
432
7
1969—Dec. 31 io ..
1970—June 3 0 . . . .
Dec. 3 1 . . . .
7,179 3,302
7,236 3,222
7,778 3,135
7,870 62,729
7,066 59,008
8,544 64,185
3,080
2,707
3,319
72 1,671
56 2,259
68 2,592
8,708 1,641
9,474 1,673
10,283 2,225
10
12
29
20
14
778
1,206
1,418
1,648
195 2,120
30 2,259
207 14,692 4,405 6,301
45
572 14,708 4,057 6,374
40
71 1,464 18,913 4,500 6,486
C ity o f Chicago:
2
9
15
16
49
1
1
216
390
568
11,127
22,281
26,003
104
30
22
20
38
45
1,928
1,723
2,035
53,062
47,797
53,499
242
273
592
1,370
2,004
2,647
239
435
528
8,500
21,797
25,203
30
17
17
7,905
7,670
8,045
1,721
1,650
1,779
58,304
54,587
59,982
84
81
135
476
719
902
288
377
426
4,409 1,290 1,517
4,729 1,507 1,566
5,549 1,851 1,586
Other reserve city :
243 4,542
160 9,563
332 11,045
1,967
2 2,566
1 2,844
86 4,609 50,439 9,881 11,464
67 6,005 51,588 9,779 11,868
222 8,489 58,165 10,391 12,221
C ou n try:
Nonmember:3
1947—Dec. 31
1969—Dec. 31 io
1970—June 30
Dec. 31
544
1,644
1,614
1,602
3,947
13,595
385
8,383 38,644
7,592 36,678
9,392 40,743
1,112
949
1,182
167
1,295
180
12,284
190
222
940
266 1,119
284 1,478
4,284
4,132
4,513
1,416
1,075
1,230
33,420
31,877
35,560
126
207
243
55
7 Beginning with 1942, excludes reciprocal bank balances.
8 Through 1960 demand deposits other than interbank and U.S.
Govt., less cash items in process o f collection; beginning with 1961,
demand deposits other than domestic commercial interbank and U.S.
Govt., less cash items in process o f collection.
9 For reclassification o f certain deposits in 1961, see note 6, p. 589,
May 1964 B ulletin.
10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports
(including figures for all bank-premises subsidiaries and other significant
majority-owned domestic subsidiaries) and (2) reporting o f figures for
total loans and for individual categories o f securities on a gross basis—that
is, before deduction o f valuation reserves. See also notes 1 and 6.
31
52
45
146 6,082
219 12,224
337 14,177
4 1,982
11 2,525
23 2,934
54 4,920 70,768 1,820 12,766
60 6,176 73,207 2,164 13,377
112 7,885 78,370 1,836 13,807
6
172
6,858
12 1,596
25 3,269 41,135 965 7,931
34 4,005 43,480 1,038 8,523
57 4,819 47,200 796 8,858
N ote .— Data are for all commercial banks in the United States; member
banks in U.S. possessions were included through 1968 and then excluded.
For the period June 1941—June 1962 member banks include mutual
savings banks as follows: three before Jan. 1960, two through Dec. 1960,
and one through June 1962. Those banks are not included in all insured or
total banks.
A small noninsured member bank engaged exclusively in trust business
is treated as a noninsured bank and not as a member bank for the period
June 30, 1969—June 30, 1970.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
For other notes see opposite page.
A 26
WEEKLY REPORTING BANKS □ JUNE 1 971
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Loans
Federal funds sold, etc.1
Wednesday
Other
To brokers
and dealers
involving—
Total
loans
and
invest
ments
Total
To
com
mer
cial
banks
U.S.
Treas
ury
se
curi
ties
For purchasing
or carrying securities
To
others
Total
Other
se
curi
ties
Com
mer
cial
and
indus
trial
To brokers
and dealers
To nonbank
finan.
institutions
To
others
Agri
cul
tural
U.S.
Treas
ury
secs.
Other
secs.
U.S.
Treas
ury
secs.
Other
secs.
Pers.
and
sales
finan.
cos.,
etc.
Other
Large banks —
Total
1970
May
6,708
7,249
5,980
6,216
6,252
6,728
5,642
5,693
265
346
196
360
7 ...............
1 4
2 1 ...............
2 8
264,321 10,302
265,107 10,715
264,312 9,525
8,233
260,545
7,782
8,458
8,329
7,100
1,994
1,597
735
773
413
455
311
268
5 * .............
12* .........
19*.............
26* .........
262,300
264,516
262,203
259,809
8,214
9,709
9,049
6,974
7,467
8,520
7,970
6,071
392
528
462
405
258
262
183
139
54,484
53,428
53,279
53,932
1,525
1,430
1,161
1,700
1,504
1,415
1,136
1,682
6 ...............
1 3
2 0 ...............
2 7
236,643
235,591
234,274
234,231
546
477
641
513
3,310
3,019
3,183
3,277
100
97
95
92
2,327
2,308
2,301
2,290
5,803
5,495
5,352
5,355
5,504
5,439
5,469
5,512
1,681
895
579
4,236
4,195
3,885
3,719
127
119
117
89
2,331
2,316
2.329
2.330
7,039
7,088
7,213
7.035
6,005
6,054
6,151
6,260
556
718
467
565
4,092
4,244
4,075
3,721
110
2,321
2,361
2,348
2,344
7,305
7,363
7.035
6,830
6,446
6,582
6,614
6,671
25,559
25,328
25,156
24,953
447
325
492
357
2,048
1,856
2,064
2,197
701
697
689
685
1,972
1,781
1,707
1,754
1,576
1,528
1,544
1,573
43,389
43,078
42,538
41,843
25,617
25,555
25,550
25,381
1,213
879
712
472
2,911
2,857
2,592
2,420
602
600
601
599
2,244
2,161
2,090
2,211
1,400
1,399
1,456
1,453
42,279
43,204
42,800
42,228
25,297
25,727
25,699
25,492
461
608
365
426
2,760
2,847
2,747
2,459
615
612
596
591
2,190
2,209
2,160
2,029
1,495
1,525
1,519
1,551
94 127,545
127,099
126,941
126,705
53,468
53,270
53,209
52,957
2,012
99
152
149
156
1,262
1,163
1,119
1,080
1,626
1,611
1,612
1,605
3,831
3,714
3,645
3,601
3,928
3,911
3,925
3,939
2,039
2,061
2,076
2,069
468
1,325
1,338
1,293
1,299
107
98
95
71
1,729
1,716
1,728
1,731
4,828
4,844
5,052
4,945
4,605
4,655
4,695
4,807
1,332
1,397
1,328
1,262
89
89
89
103
1,706
1,749
1.752
1.753
5,115
5,154
4,875
4,801
4,951
5,057
5,095
5,120
109 169,205
101 167,974
71 167,806
79 167,582
79,027
78,598
78,365
77,910
2,025
2,018
113
205
150
92
177,143
176,995
177,078
176,634
81,019
81,162
81,336
81,191
2,059
2,081
2,096
2,089
97
399
434
359
177,782
179,186
178,915
178,402
81,467
81,785
81,912
81,595
2,109
41,660
40,875
40,865
40,877
2,022
2,031
1971
Apr.
May
2,121
2,130
2,155
1,100
108
107
122
N ew York C ity
1970
May
6 ...............
1 3
2 0 ...............
2 7
Apr.
7 ...............
1 4
2 1 ...............
2 8
58,186
57,929
57,593
56,510
843
1,084
1,046
1,338
791
894
937
1,185
35
50
70
118
5 * .............
12* .........
19*.............
26*.............
56,554
57,404
56,918
55,519
728
972
1,541
723
662
680
1,198
488
46
31
71
13
182,159
182,163
180,995
180,299
5,183
5.819
4.819
4,516
4,748
5,313
4,506
4,011
259
344
186
355
1971
May
17
40
100
39
35
20
20
261
272
202
Outside
N ew York C ity
1970
May
6 ...............
1 3
2 0 ...............
2 7
Apr.
7 ...............
1 4
2 1 ...............
2 8
206,135
207,178
206,719
204,035
9,459
9,631
8,479
6,895
6,991
7,564
7,392
5,915
1,959
1,547
665
655
413
415
311
268
96 133,754 55,402
105 133,917 55,607
111 134,540 55,786
57 134,791 55,810
5 * .............
12*.............
19*.............
26*.............
205,746
207,112
205,285
204,290
7,486
8,737
7,508
6,251
6,805
7,840
6,772
5,583
346
497
391
392
258
262
183
119
77
138
162
157
2,005
2,009
2,017
1971
May
For notes see p. A-30.
135,503
135,982
136,115
136,174
56,170
56,058
56,213
56,103
2,089
2,101
2,110
2,135
221
183
107
95
110
102
139
JUNE 1 9 7 1 □ WEEKLY REPORTING BANKS
A 27
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Loans (cont.)
Investments
Other (cont.)
U.S. Treasury securities
Notes and bonds
maturing—
To con imercial
ba nks
Wednesday
Real
estate
D o
mes
tic
For
eign
Con
sumer
instal
ment
For
eign
govts. 2
All
other
Total
Bills
Certif
icates
Within
1 yr.
1 to
5 yrs.
After
5 yrs.
Large banks —
T otal
1970
33,358
33,425
33,417
33,469
468
417
403
452
1,342
1,355
1,317
1,420
20,309
20,369
20,380
20,413
2,965
2,645
2,335
2,510
3,443
3,412
3,181
3,367
13,616
13,618
14,723
14,513
2,402
2,380
2,413
2,389
............................. May 6
........................................13
........................................20
........................................27
28,380
28,387
28,075
26,569
6,110
6,143
5,854
4,409
3,066
3,104
3,125
3,161
15,134
15,127
15,151
15,070
4,070
4,013
3,945
3,929
............................. Apr. 7
......................................14
........................................21
...................................... 28
26,506
26,154
25,231
25,567
4,211
3,938
3,365
3,861
3,258
3,273
3,322
3,320
15,081
14,995
14,820
14,735
3,956
3,948
3,724
3,651
993
987
984
991
14,093
13,970
13,877
13,857
22,426
22,055
22,652
22,779
1971
34,445
34,571
34,648
34,729
583
579
530
562
1,451
1 ,474
1,412
1 ,488
21,586
21,653
21,678
21,786
770
802
786
805
13,811
13,801
14,002
13,972
34,749
34,866
34,933
35,044
561
671
659
638
1,384
1 ,715
1,861
1,866
21,813
21,901
21,938
22,040
767
808
800
814
14,102
13,943
14,036
13,997
........................... May 5»
......................................12»
........................... 19»
........................... 26p
N ew York C ity
1970
3,362
3,378
3,381
3,404
266
232
217
242
730
717
701
793
1,653
1,655
1,660
1,670
620
614
609
610
2,701
2,740
2,621
2,614
4,424
4,300
4,582
4,723
1,066
941
779
936
491
495
353
346
2,597
2,600
3,098
3,080
270
264
352
361
........................... May 6
......................................13
...................................... 20
...................................... 27
3,581
3,611
3,624
3,628
206
184
126
155
824
840
776
830
1,819
1,831
1,824
1,820
472
502
501
508
2,493
2,535
2,573
2,449
5,693
5,525
5,486
5,053
1,713
1,567
1,552
1,154
371
378
363
368
2,896
2,867
2,883
2,885
713
713
688
646
........................... Apr. 7
......................................14
......................................21
......................................28
3,660
3,678
3,689
3,700
138
242
200
151
706
903
988
960
1,816
1,821
1,824
1,822
488
524
515
518
2,612
2,469
2,460
2,490
5,079
5,025
4,570
4,781
1,018
1,086
786
1,060
457
456
446
436
2,914
2,838
2,778
2,736
690
645
560
549
........................... May 5 p
......................................12 p
......................................19 p
...................................... 26 p
1971
Outside
N ew York C ity
1970
29,996
30,047
30,036
30,065
202
185
186
210
612
638
616
627
18,656
18,714
18,720
18,743
373
373
375
381
11,392
11,230
11,256
11,243
18,002
17,755
18,070
18,056
1,899
1,704
1,556
1,574
2,952
2,917
2,828
3,021
11,019
11,018
11,625
11,433
2,132
2,116
2,061
2,028
.May 6
...........13
....... 20
...........27
1971
30,864
30,960
31,024
31,101
377
395
404
407
627
634
636
658
19,767
19,822
19,854
19,966
298
300
285
297
11,318
11,266
11,429
11,523
22,687
22,862
22,589
21,516
4,397
4,576
4,302
3,255
2,695
2,726
2,762
2,793
12,238
12,260
12,268
12,185
3,357
3,300
3,257
3,283
31,089
31,188
31,244
31,344
423
429
459
487
678
812
873
906
19,997
20,080
20,114
20,218
279
284
285
296
11,490
11,474
11,576
11,507
21,427
21,129
20,661
20,786
3,193
2,852
2,579
2,801
2,801
2,817
2,876
2,884
12,167
12,157
12,042
11,999
3,266
3,303
3,164
3,102
For notes see p. A-30.
. Apr. 7
...........14
....... 21
...........28
.May
5p
....... 12*
...........19p
...........26 p
REPORTING BANKS □ JUNE 1971
S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continu
(In millions of dollars)
Investments (cont.)
Other securities
Total
Obligations
o f State
and
political
subdivisions
Tax
war
rants 3
All
other
Other bonds,
corp. stock,
and
securities
Certif.
of
partici
pation4
Cash
items
in
process
of
collec
tion
Re
serves
with
F.R.
Banks
Cur
rency
and
coin
liab
iti<
All
others
38,304
38,313
37,836
37,654
4,994
4,993
4,758
4,670
29,154
29,171
29,043
28,963
1,019
1,092
1,012
1,017
3,137
3,057
3,023
3,004
32,803
31,314
31,632
31,408
17,747
16,921
17,049
15,967
2,956
3,252
3,210
3,295
309.
306;
305j
303,
48,496
49,010
49,634
49,109
7,294
7,347
7,947
7,762
34,256
34,611
34,570
34,353
1,180
1,190
1,192
1,169
5,766
5,862
5,925
5,825
31,817
36,811
34,084
32,615
17,959
18,041
18,648
19,298
3,158
3,528
3,486
3,560
49,798
49,467
49,008
48,866
7,849
7,709
7,360
7,389
34,866
34,666
34,673
34,593
1,172
1,201
1,159
1,175
5,911
5,891
5,816
5,709
33,651
32,277
32,059
28,466
21,038
17,961
19,461
19,688
3,127
3,436
3,455
3,569
340,
346,
342,
338,
343,
341,
339,
333,
6,875
6,823
6,671
6,632
1,369
1,314
1,259
1,200
4,575
4,612
4,544
4,569
94
89
81
83
837
808
787
780
17,020
15,409
15,625
16,353
4,841
4,643
4,633
4,115
406
433
404
431
82.
79;
79,
80,
8,261
8,242
8,523
8,276
1,373
1,317
1,685
1,598
5,346
5,416
5,306
5,167
123
127
122
123
1,419
1,382
1,410
1,388
14,905
18,090
15,896
16,275
4,298
4,946
4,994
4,986
414
439
418
437
8,468
8,203
8,007
7,787
1,521
1,538
1,319
1,338
5,445
5,240
5,278
5,130
119
111
111
128
1,383
1,314
1,299
1,191
15,788
14,580
14,716
12,530
5,808
4,418
4,696
5,199
399
425
410
429
84,
88.
85;
85,
85,
84;
83!
80;
I
31,429
31,490
31,165
31,022
3,625
3,679
3,499
3,470
24,579
24,559
24,499
24,394
925
1,003
931
934
2,300
2,249
2,236
2,224
15,783
15,905
16,007
15,055
12,906
12,278
12,416
11,852
2,550
2,819
2,806
2,864
227,
226
225
223
40,235
40,768
41,111
40,833
5,921
6,030
6,262
6,164
28,910
29,195
29,264
29,186
1,057
1,063
1,070
1,046
4,347
4,480
4,515
4,437
16,912
18,721
18,188
16,340
13,661
13,095
13,654
14,312
2,744
3,089
3,068
3,123
41,330
41,264
41,001
41,079
6,328
6,171
6,041
6,051
29,421
29,426
29,395
29,463
1,053
1,090
1,048
1,047
4,528
4,577
4.517
4.518
17,863
17,697
17,343
15,936
15,230
13,543
14,765
14,489
2,728
3,011
3,045
3,140
255
258
257
253;
257
257
256
253
JUNE 1 9 7 1 o WEEKLY REPORTING BANKS
A 29
ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Deposits
Time and savings
Demand
Domestic
interbank
Total
IPC
States
and
polit
ical
sub
divi
sions
U.S.
Govt.
Com
mer
cial
IPC
Foreign
Com
Mutual
sav
Govts., mer
ings
cial
etc.2
banks
Certi
fied
and
offi
cers’
checks
Total6
Sav
ings
Other
States
and
polit
ical
sub
divi
sions
Wednesday
D o
mes
tic
inter
bank
For
eign
govts.2
L arge banks —
T otal
1970
134,258
130,392
132,140
130,554
90,088
90,872
90,000
91,017
6,923
6,329
6,371
6,353
4,471
2,677
6,136
3,760
19,034
18,261
17,825
17,108
623
549
528
536
826
1,054
767
718
2,159
2,296
2,120
2,171
10,134
8,354
8,393
8,891
99,221
99,312
99,513
99,470
45,964
45,969
46,058
46,066
36,753
36,872
36,831
36,919
8,983
8,970
8,985
8,972
338
334
350
353
6,912
6,894 ............................13
7,020 ............................ 20
6,889 ............................27
140,699
146,283
143,975
141,474
97,896
101,985
98,470
97,099
6,409
6,419
6,380
6,353
1,971
2,717
5,483
5,833
22,668
21,467
22,075
20,750
829
725
662
631
763
861
790
778
2,324
2,225
2,214
2,329
7,839
9,884
7,901
7,701
128,846
128,724
128,632
129,338
53,083
53,026
53,021
53,043
55,192
54,945
54,307
54,797
14,421
14,557
15,066
15,229
1,520
1,507
1,563
1,565
4,085
4,152 ............................ 14
4,161 ............................21
4,162 ............................28
143,385
142,093
139,271
136,096
96,054
96,567
96,205
95,926
7,674
6,654
6,549
6,249
5,685
6,653
5,114
5,317
21,762
21,083
20,321
18,616
714
652
635
841
827
876
791
762
2,370
2,291
2,176
2,214
8,299
7,317
7,480
6,171
129,537
129,792
130,567
131,146
53,159
53,261
53,396
53,434
54,871 15,205
55,031 15,316
55,387 15,285
55,662 15,379
1,595
1,529
1,563
1,577
4,179
4,118 ............................12*
4,393
4,554 ............................26*
1971
N ew York C ity
1970
42,146
39,759
40,283
40,756
21,577
21,556
21,643
22,846
732
514
521
415
1,052
465
1,602
853
8,432
8,085
7,758
7,477
331
286
272
288
661
877
601
557
1,510
1,644
1,464
1,511
7,851
6,332
6,422
6,809
13,900
13,801
13,791
13,760
4,386
4,381
4,390
4,385
4,477
4,473
4,370
4,426
359
362
343
343
198
196
214
214
4,375
4,283 ............................13
4,368 ............................20
4,287 ............................27
41,319
44,392
42,552
42,800
22,556
23,695
22,739
23,143
642
552
477
370
284 10,126
628 9,807
1,316 10,322
1,356 10,202
469
398
349
323
592
687
608
610
1,682
1,562
1,553
1,641
4,968
7,063
5,188
5,155
21,049
21,233
21,044
21,464
5,218
5,235
5,270
5,288
11,566
11,664
11,292
11,660
1,174
1,203
1,256
1,283
767
778
848
861
2,195
2,225 ............................14
2,268 ............................21
2,248 ............................ 28
43,094
41,253
40,735
38,695
22,337
21,766
22,150
22,345
1,189
442
587
417
1,317
1,654
1,140
1,356
372
334
332
556
654
703
601
560
1,728
1,654
1,528
1,540
5,544
4,856
5,051
3,855
21,475
21,437
21,635
21,932
5,310
5,323
5,342
5,337
11,764
11,740
11,789
11,878
1,229
1,272
1,286
1,313
827
766
767
784
2,222
2,208 ............................ 12p
2,320
2,491
1971
9,953
9,844
9,346
8,066
O utside
N ew York C ity
1970
92,112
90,633
91,857
89,798
68,511
69,316
68,357
68,171
6,191
5,815
5,850
5,938
3,419 10,602
2,212 10,176
4,534 10,067
2,907 9,631
292
263
256
248
165
177
166
161
649
652
656
660
2,283
2,022
1,971
2,082
85,321
85,511
85,722
85,710
41,578
41,588
41,668
41,681
32,276
32,399
32,461
32,493
8,624
8,608
8,642
8,629
140
138
136
139
2,537
2,611 ............................13
2,652 ............................20
2,602 ............................27
99,380
101,891
101,423
98,674
75,340
78,290
75,731
73,956
5,767
5,867
5,903
5,983
1,687
2,089
4,167
4,477
12,542
11,660
11,753
10,548
360
327
313
308
171
174
182
168
642
663
661
688
2,871
2,821
2,713
2,546
107,797
107,491
107,588
107,874
47,865
47,791
47,751
47,755
43,626
43,281
43,015
43,137
13,247
13,354
13,810
13,946
753
729
715
704
1,890 ................. Apr. 7
1,927 ............................14
1,893 ............................21
1,914
100,291
100,840
98,536
97,401
73,717
74,801
74,055
73,581
6,485
6,212
5,962
5,832
4,368
4,999
3,974
3,961
11,809
11,239
10,975
10,550
342
318
303
285
173
173
190
202
642
637
648
674
2,755 108,062 47,849 43,107 13,976
2,461 108,355 47,938 43,291 14,044
2,429 108,932 48,054 43,598 13,999
2,316 109,214 48,097 43,784 14,066
768
763
796
793
1,957
1,910 ............................12p
2,073 ............................19*
2,063 ............................26®
1971
For notes see p. A-30.
A 30
WEEKLY REPORTING BANKS □ JUNE 1971
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Reserves
for—
Borrowings
from—
Wednesday
Fed
eral
funds
F.R.
pur
chased, Banks
etc. 7
Others
Other
liabili
ties
etc. 8
Loans
Memoranda
Secur
ities
Total
capital
ac
counts
Total
loans
(gross)
ad
justed?
Large negotiable
Total
time C D ’s
Gross
loans
included in time
liabili
and
D e
ties o f
and savings deposits n
invest mand
banks
ments deposits
to
ad
Issued Issued
(gross)
their
ad
justed 10 Total
to
to
foreign
justed9
IPC’s others bran
ches
169,193
168,078
167,741
167,653
229,923
228,446
228,229
228,086
Large banks —
Total
1970
May
6 .........................
1 3
20.........................
2 7
Apr.
20,414
20,503
17,635
17,530
340
709
283
675
2,539
2,396
2,390
2,253
25,161
25,089
25,560
25,536
4.036
4.036
4.036
4.036
23,823
23,800
23,751
23,814
7.........................
1 4
21...................
2 8
21,853
23,648
23,428
212
168
20,111
78
694
1,038
1,047
1,004
912
18,179
17,171
16,346
16,532
4,054
4.047
4.044
4.045
25,431 179,080 255,956 84,243 27,304
25,363 178,673 256,070 85,288 27,237
25,299 177,744 255,453 82,333 26,741
25,350 177,205 252,883 82,276 27,219
17,483 9,821
17,434 9,803
16,711 10,030
17,096 10,123
3,260
2,317
2,253
2,158
5 p .......................
12 p ................
19* .......................
26p ................
22,448
23,559
22,382
18,734
748
15
920
1,246
985
1,049
981
983
16,459
15,768
16,170
16,021
4.048
4,032
4,030
4,021
25,557
25,555
25,474
25,482
177,968
179,704
179,335
178,667
254,272
255,325
253,574
253,100
17,017 10,110
17,098 10,087
17,264 10,342
17,441 10,696
2,004
1,598
1,620
1,572
5,850
5,563
4,972
4,947
50
308
308
337
322
13,226
12,978
13,119
13,596
1,208
1,208
6,103
6,096
6,080
6,070
8,005
7,476
7,008
7,272
1.196
1.196
1,198
77,950
78,140
76,547
78,278
12,966
12,960
13,068
12,984
5,938
5,974
5,966
5,982
7,028 11,954
6,986 11,653
7,102 11,998
7,002 12,346
1971
May
82,287
82,080
81,777
83,697
27,127
27,185
27,606
28,137
41,415
40,658
40,673
40,653
52,714 15,642
51,781 15,800
51,926 15,298
52,008 16,073
2,966
2,863
2,901
2,842
878
840
858
2,088
1,997
2,061
1,984
7,786
7,528
7,582
7,985
1,200
6,507
6,482
6,465
6,436
43,235
43,084
42,521
41,841
57,189
56,851
56,530
55,170
16,004
15,867
15,018
14,967
8,867
9,103
8,920
9,334
6,409
6,613
6,263
6,623
2,458
2,490
2,657
2,711
1,867
1,184
1,236
1,409
1,204
1.189
1.190
1,195
6.510
6,519
6.510
6,488
42,207
43,254
42,943
42,312
55,754
56,482
55,520
54,880
16,036
15,175
15,533
16,743
9,309
9,280
9,435
9,719
6,628
6,659
6,646
6,730
2,681
2,621
2,789
2,989
1,180
911
1,028
993
N ew York C ity
1970
May
6 .........................
1 3
20.........................
2 7
14
1,210
1,211
866
1971
Apr.
7.........................
1 4
21.........................
2 8
6,747
7,292
7,414
5,542
May
5^.......................
12*.......................
6,180
7,370
6,484
5,015
319
620
672
6,872
6,409
6,647
6,596
14,564
14,940
12,663
12,583
290
709
283
661
2,231 11,935
2,088 12,111
2,053 12,441
1,931 11,940
2,828
2,828
2,826
2,825
17,720
17,704
17,671
17,744
127,778
127,420
127,068
127,000
177,209
176,665
176,303
176,078
62,308 10,000
62,340 10,097
61,249 10,167
62,205 10,142
5,060
5,108
5,126
5,124
4,940
4,989
5,041
5,018
4,168
4,125
4,416
4,361
\9 p ................
2 6p ................
120
‘295
Outside
N ew Y ork C ity
1970
May
6 .........................
1 3
20.........................
2 7
Apr.
7 .........................
1 4
21.........................
2 8
15,106
16,356
16,014
14,569
168
92
78
399
969 10,174
982 9,695
941 9,338
855 9,260
2,858
2,851
2,846
2,845
18,924
18,881
18,834
18,914
135,845
135,589
135,223
135,364
198,767
199.219
198,923
197,713
68,239 18,437
69,421 18,134
67,315 17,821
67,309 17,885
11,074
10,821
10,448
10,473
7,363
7,313
7,373
7,412
1,393
1,133
1,017
749
5^.......................
16,268
16,189
15,898
13,719
429
15
300
574
928
994
930
932
9,587
9,359
9,523
9,425
2,844
2,843
2,840
2,826
19,047
19,036
18,964
18,994
135,761
136,450
136,392
136,355
198,518
198,843
198,054
198.220
66,251
66,905
66,244
66,954
10,389
10,439
10,618
10,711
7,429
7,466
7,553
7,707
824
687
592
579
1971
May
\ 2 p .......................
19*>.......................
26? ................
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.
17,818
17,905
18,171
18,418
8 Includes minority interest in consolidated subsidiaries.
9 Exclusive o f loans and Federal funds transactions with domestic com
mercial banks.
!0A11 demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process o f collection.
11 Certificates o f deposit issued in denominations of $100,000 or more.
JUNE 1971 □ BUSINESS LOANS OF BANKS
A 31
COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding
Net change during
1971
1971
Industry
1971
May
26
May
19
May
12
May
5
Apr.
28r
2,321
5,304
2,627
2,022
2,741
2,311
5,359
2,616
2,025
2,747
2,297
5,390
2,633
2,026
2,766
2,316
5,307
2,625
2,014
2,740
2,318
5,295
2,632
2,020
2,703
3
9
-5
2
38
3
113
-2 0 5
44
141
-1 6 8
41
69
90
2,324
2,478
1,181
2,769
1,857
2,391
2,498
1,182
2,830
1,854
2,350
2,517
1,189
2,873
1,869
2,402
2,499
1,148
2,838
1,837
2,501
2,448
1,183
2,826
1,850
-1 7 7
30
-2
-5 7
7
-6 6
-3 6
3,821
1,134
3,872
4,402
6,076
1,443
1,966
3,770
7,387
4,807
1,355
3,800
1,159
3,913
4,424
6,036
1,465
1,958
3,754
7,415
4,903
1,413
3,789
1,159
3,910
4,275
6,000
1,430
1,985
3,719
7,400
4,906
1,488
3,810
1,132
3,843
4,394
6,024
1,358
2,037
3,716
7,481
4,860
1,502
May
A pr.r
Mar.
I
1970
1970
IV
III
2nd
half
169
-2 4 7
-9 2
68
149
-1 6 9
-5 9 5
-6 9
-2 6 9
-2 4 9
149
-1 7 3
238
-7 5
51
-2 0
-7 6 8
169
-3 4 4
-1 9 8
81
271
127
249
237
14
-4 3
-7 6
82
-1 9 7
31
4
-5 3 7
166
-3 4 3
32
-1 0 5
549
-5 2 2
-1 0 5
-2 2
-2 1 4
-1 9 9
127
-8
85
101
350
-3 9 5
-1 1 3
63
-1 1 3
-4 9 9
376
-7 9
-1 2 8
27
-8 8
5
81
135
141
-5 9
-3 6 5
117
-3 5
79
-1 1 0
-1 0 8
-5 7
10
162
286
49
-3 2 7
r131
—200
—180
-1 6 4
-1 8 1
375
26
-2 0 1
119
46
-2 4 0
146
300
-5 2
945
-7 6
106
52
-1 0 7
247
-2 7
-1 4 6
51
225
148
241
-2 5 7
481
78
-3 0 8
366
19
-3 8 6
197
525
96
1,186
-5 7 7
-2 9 2
54
173
-9 6
-2 5 0
-8 3 1
66
-1 4 7
-1 1 5
-2 0 3
1st
half
Durable goods manufacturing:
Primary metals....................................
Machinery............................................
Transportation equipment................
Other fabricated metal products. . .
Other durable goods..........................
Nondurable goods manufacturing:
Food, liquor, and tobacco...............
Textiles, apparel, and leather...........
Petroleum refining..............................
Chemicals and rubber.......................
Other nondurable goods...................
Mining, including crude petroleum
and natural gas.............................
Trade: Commodity dealers...................
Other wholesale.........................
Retail............................................
Transportation........................................
Communication......................................
Other public utilities..............................
Construction............................................
Services.....................................................
All other domestic loans.......................
Bankers’ acceptances..............................
Foreign commercial and industrial
loans..................................................
Total classified loans..............................
3,821
1,199
3,772
4,264
6,076
1,424
2,000
3,653
7,439
4,812
1,454
-3 4
117
-5 2
-5
-9 9
-7 4
-1 2 3
61
57
-2 1 0
67
-2 1
70
241
66
-7 3
2,480 2,535
2,703 2,665 2,681
68,360 68,718 68,652 68,363 68,225
168
135
-1 4
-1 2 9
145
63
140
-9 9 8
198
-1 8 4
57
1,068
-8 4
255
884 - 1 ,6 4 0
Total commercial and industrial loans.
81,595 81,912 81,785 81,467 81,191
404
-1 0
424
r—473
372
1,607
1,979 - 1 ,9 4 0
-6 5
100
138
19
See N ote to table below.
“TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
Outstanding
Net change during—
1970
1971
1971
1970
1970
Industry
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...................
Total loans................................
Feb.
24
Jan.
27
Dec.
30
1,630
2,591
1,613
1,564
2,634
1,633
1,544
2,666
1,647
1,527
2,681
1,633
1,535
2,690
1,621
1,548
2,826
1,627
769
1,191
733
1,216
747
1,222
750
1,107
742
1,089
801
1,131
919
982
974
971
949
985
609
921
1,728
1,058
592
932
1,822
1,062
617
915
1,850
1,100
659
1,142
1,834
1,116
674
1,191
1,800
1,116
657
1,213
1,849
1,171
3,058
87
810
1,425
4,689
439
1,038
1,177
3,197
1,353
3,089
81
813
1,404
4,757
426
991
1,164
3,249
1,223
3,123
80
782
1,417
4,867
402
973
1,107
3,142
1,268
3,270
79
754
1,459
4,763
398
1,056
1,063
3,154
1,319
3,354
79
783
1,450
4,731
398
1,029
1,048
3,186
rl , 346
1,788
1,840
1,792
1,716
1,723
May
26
Apr.
28
1,668
2,595
1,442
1,622
2,735
1,515
804
1,201
Mar.
31
Oct.
28
Sept.
30
2nd
half
j
IV
1,677
2,924
1,655
103
-9 0
-2 0
-1 5 0
-2 4 3
-2 2
157
140
91
68
-1 6
-1 1
7
-1 0 3
69
781
1,136
807
1,141
-9
127
-6 5
-5 2
45
9
3
-3 0
-2 0
-4 3
932
984
1,008
-1 1
-2 3
1
47
-2 2
703
1,220
1,738
1,159
720
1,230
1,693
1,171
751
1,248
1,780
1,183
-4 0
-2 9 8
1
-7 1
-9 4
-3 5
69
-1 2
-1 1
-1 8
71
112
36
11
-9 6
-7 5
-1 0 5
-5 3
140
100
3,326
79
756
1,399
4,564
415
1,018
1,044
3,209
1,285
3,329
83
739
1,371
4,453
415
1,022
1,005
3,208
1,716
3,419
73
727
1,351
4,443
386
1,017
972
3,069
1,241
3,461
82
697
1,360
4,417
448
1,065
957
3,132
1,225
-2 0 3
1
26
18
303
-1 3
-4 5
63
-6 7
-1 7
-1 3 5
-3
59
39
147
-3 3
-4 7
-8 7
77
60
-1 2 1
-6
5
52
141
40
32
46
115
-2
-1 2 7
10
-4
102
-5 5
-6 8
-1 2 8
8
22
15
-2 5 6
-9
64
91
288
7
-1 5
189
192
56
1,716
1,283
1,612
1,604
76
112
-1 6
21
96
32,006 32,259 32,192 32,553 *•32,571 32,358 32,205 32,026 32,622
-1 6 6
-2 6 4
883
-2 6 7
619
N ote.—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 o f such loans held by all weekly reporting banks
and about 70 per cent o f those held by all commercial banks.
For description o f series see article “Revised Series on Commercial and
Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209.
Nov.
25
jj
III
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 32
LOAN SALES BY BANKS o JUNE 1971
LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS
(Amounts outstanding; in millions o f dollars)
To own subsidiaries, foreign branches,
holding companies, and other affiliates
Date
To all others except banks
By type o f loan
By type of loan
Total
Total
Commercial
and
industrial
Commercial
and
industrial
All other
All other
Feb.
3 ..........
10
17...........
24.
2,725
2,704
2,608
2,622
1,817
1,816
1,777
1,807
908
888
831
815
1,914
1,909
1,883
1,872
435
429
423
411
1,479
1,480
1,460
1,461
Mar.
3 ...........
10. ,
17...........
24
31 ...........
2,610
2,562
2,472
2,416
2,560
1,713
1,701
1,636
1,614
1,556
897
861
836
802
1,004
1,875
1,885
1,868
1,872
1 ,866
412
417
421
415
415
1,463
1,468
1,447
1 ,4 5 7
1 ,4 5 1
Apr.
7 ...........
14...........
2 1 ...........
2 8 ...........
2,375
2,286
2,320
2,409
1 ,472
1,403
1,469
1,560
903
883
851
849
1 ,855
1,854
1 ,877
1 ,873
421
420
424
417
1,434
1,434
1,453
1 ,4 5 6
May
5 ...........
12...........
1 9...........
2 6 ...........
2,574
2,525
2,520
2,528
1,619
1 ,607
1 ,626
1,627
955
918
894
901
1,892
1,894
1,890
1,911
417
420
410
413
1,475
1 ,474
1,480
1,498
N ote .—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold
by banks other than large weekly reporting banks.
RATES ON SHORT-TERM BUSINESS LOANS OF BANKS
Size of loan (in thousands of dollars)
All sizes
1-9
Interest rate
(per cent per annum)
Nov.
1970
Aug.
1970
Nov.
1970
10-99
Nov.
1970
Aug.
1970
100-499
Aug.
1970
Nov.
1970
500-999
Aug.
1970
Nov.
1970
1,000 and over
Aug.
1970
N ov.
1970
Aug.
1970
Percentage distribution of dollar amount
Less than 7 .50...............
7 .5 0
7.51-7.9 9
8.00........................
8.01-8.4 9
8.5 0
8.51-8.9 9
9.00..................................
9.01-9.4 9
9.5 0
Over 9.5 0 ......................
T otal.................
Total loans:
Dollars (millions). . .
Number (thousands)
9 .7
35.1
16.6
8.9
6.8
.3
.3
41.9
20.1
4 .7
4.3
4 .2
10.7
7.3
1.0
8.7
6.0
6.3
8.0
11.0
11.3
10.8
10.1
11.2
27.3
9.8
7.3
7.4
17.1
100.0
100.0
100.0
4,2 0 8 .6 4,1 9 3 .4
28.6
27.8
39.6
9 .9
38.7
9.7
378.4
100.0
7.9
7.3
6.2
4.2
3.4
7 .4
9 .7
14.0
12.9
12.0
1.4
.5
.6
8.2
8.8
11.0
13.4
13.4
11.7
9.3
3.5
17.8
18.0
11.5
10.8
8.0
7.8
6 .4
3.2
4.1
8.9
1.0
.5
.2
19.5
19.2
11.6
12.7
9 .4
7 .7
5.7
12.4
6.7
27.5
22.7
11.3
7 .6
6.6
2.2
4.3
2.3
.5
.1
36.5
25.0
10.0
6.8
2.0
6.9
6.7
4.1
3.9
6.3
.7
13.6
47.3
16.4
7 .2
4 .7
4.1
1.7
1.4
.5
.4
57.3
21.4
5.6
4 .4
3.7
1.9
1.3
3.4
100.0
100.0
1.2
.2
1.6
21.6
100.0
100.0
100.0
100.0
100.0
402.6
12.7
777.0
4 .0
815.1
4 .2
566.3
.9
574.3 2,447.3 2 ,362.7
1.0
.9
1.1
Weighted average rates (per cent per annum)
8.07
7.74
8.47
8.05
8.15
8.08
8.16
8.50
8.24
8.89
8.47
8.49
8.53
8.54
8.89
8.67
9 .00
8.71
8.72
8.85
9.41
9.15
9.07
9.41
8.90
8.76
9.08
9.51
N ote.—Beginning Feb. 1971 the Quarterly Survey o f Interest Rates on
Business Loans was revised. For description o f revised series see pp. 46877 o f this B ulletin,
2.3
5.9
7 .0
8.0
11.6
10.1
7 .9
21.6
100.0
5.8
3.7
3.6
1.9
2.5
5 .4
Center
35 centers........................................
New York C ity..........................
7 other Northeast.....................
8 North Central........................
7 Southeast.................................
8 Southwest................................
4 West Coast..............................
3.7
.7
8.79
8.60
9.09
8.72
8.64
8.53
8.99
9.07
8.95
9.42
8.99
8.79
8.84
9.19
8.34
8.12
8.60
8.36
8.16
8.26
8.38
8.75
8.59
9.01
8.79
8.54
8.59
8.81
8.09
7.83
8.30
8.26
7.95
7.99
8.12
8.46
8.24
8.68
8.46
8.45
8.48
8.61
7.74
7.59
7.99
7.78
7.78
7.69
7.90
8.25
8.12
8.49
8.27
8.15
8.33
8.28
JUNE 1971 □ INTEREST RATES
A 33
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
192 9
193 0
19 31.........................
193 2
193 3
Effective date
Rate
In effect during—
5^-6
31/2-6
23^-5
314-4
n/z-4
1934—
1947 (N ov.)........
Effective date
Rate
21/2
1951—Jan.
Oct.
Dec.
8.
17.
19.
1953—Apr.
27.
314
1954—Mar.
17.
3
1955—Aug.
Oct.
4
14,
314
2%
3
13
21
3%
4
6
41/2
1947—Dec. i . . . .
1 V4
1957—Aug.
1948—A u g .i... .
2
1950—Sept. 22.
214
1958—Jan. 22
Apr.
21
Sept.
11
Rate
1959—May 1 8 ...
Sept.
1 .. .
41/2
5
1960—Aug. 2 3 ...
41/2
1965—Dec.
6 ...
1966—Mar. 1 0 ...
June 2 9 ...
Aug. 1 6 ...
31/2
1956—Apr.
Aug.
Effective date
1967—Jan. 26-27
Mar. 2 7 ...
Nov. 2 0 ...
1968—Apr.
Sept.
Nov.
Dec.
Dec.
4
31/2
4
1 9 ...
2 5 ...
1 3 ...
2 ...
1 8 ...
5Vi
5 34
6
51/2-53/4
561/2
61/2
61/4
61/2
6 -614
Effective date
1969—Jan.
Mar.
June
7
17
9
1970—Mar. 25
Sept. 21
Nov. 12
Nov. 23
Dec. 22
1971—Jan.
Jan.
Jan.
Feb.
Mar.
Mar.
Apr.
May
6
15
18
16
11
19
23
11,
634
Rate
7
71/2
81/2
8
m
7H
7
634
6%
6
1/4
6
534
514-51/2
514
51/4-51/2
51/2
1 Date o f change not available.
MONEY MARKET RATES
(Per cent per annum)
U.S. Government secutities (taxable)4
Finance
Period
Prime
coml.
paper
4- to 6 months 1
CO.
paper
placed
directly,
3- to 6 months2
Prime
bankers’
accept
ances,
90 days1
Federal
funds
rate3
3-month bills5
RateMarket
on
yield
new issue
6-month bills5
9- to 12-month issues
Rate on
new issue
Market
yield
Bills (mar
ket yield) 5
Other6
3- to 5year
issues 7
1963..............................
1964..............................
3.55
3.97
3.40
3.83
3.36
3.77
3.18
3.50
3.157
3.549
3.16
3.54
3.253
3.686
3.25
3.68
3.30
3.74
3.28
3.76
3.72
4.06
1965..............................
1966..............................
1967..............................
1968..............................
1969..............................
1970..............................
4.38
5.55
5.10
5.90
7.83
7.72
4.27
5.42
4.89
5.69
7.16
7.23
4.22
5.36
4.75
5.75
7.61
7.31
4.07
5.11
4.22
5.66
8.22
7.17
3.954
4.881
4.321
5.339
6.677
6.458
3.95
4.85
4.30
5.33
6.64
6.42
4.055
5.082
4.630
5.470
6.853
6.562
4.05
5.06
4.61
5.48
6.84
6.55
4.06
5.07
4.71
5.45
6.77
6.53
4.09
5.17
4.84
5.62
7.06
6.90
4.22
5.16
5.07
5.59
6.85
7.37
1970—M ay..................
June..................
July...................
Aug...................
Sept...................
Oct....................
N ov...................
D ec...................
8.23
8.21
8.29
7.90
7.32
6.85
6.30
5.73
7.43
7.55
7.64
7.48
7.12
6.76
6.16
5.48
8.02
7.78
7.61
7.20
7.03
6.54
5.79
5.32
7.94
7.60
7.21
6.61
6.29
6.20
5.60
4.90
7.035
6.742
6.468
6.412
6.244
5.927
5.288
4.860
6.83
6.67
6.45
6.41
6.12
5.90
5.28
4.87
7.262
6.907
6.555
6.526
6.450
6.251
5.422
4.848
7.02
6.86
6.51
6.56
6.47
6.21
5.42
4.89
7.12
7.07
6.63
6.55
6.40
6.23
5.39
4.87
7.69
7.50
7.00
6.92
6.68
6.34
5.52
4.94
7.97
7.86
7.58
7.56
7.24
7.06
6.37
5.86
1971—Jan.....................
Feb..................
Mar...................
Apr....................
May..................
5.11
4.47
4.19
4.57
5.10
5.07
4.37
4.05
4.27
4.69
4.77
4.09
3.80
4.36
4.91
4.14
3.72
3.71
4.15
4.63
4.494
3.773
3.323
3.780
4.139
4.44
3.69
3.38
3.85
4.13
4.510
3.806
3.431
3.927
4.367
4.47
3.78
3.50
4.03
4.34
4.39
3.84
3.61
4.09
4.64
4.29
3.80
3.66
4.21
4.93
5.72
5.31
4.74
5.42
6.02
13............
20............
27.............
4.63
4.63
4.38
4.25
4.63
4.53
4.31
4.03
4.35
4.13
4.03
3.85
4.09
3.59
4.14
3.46
4.110
3.845
3.640
3.497
4.06
3.71
3.56
3.43
4.114
3.839
3.679
3.590
4.11
3.75
3.65
3.57
4.11
3.80
3.72
3.68
4.03
3.82
3.70
3.64
5.49
5.33
5.24
5.15
Mar.
6 ...........
13...........
2 0 ...........
27...........
4.25
4.25
4.20
4.05
3.88
4.08
4.13
4.13
3.75
3.70
3.83
3.80
3.41
3.29
3.93
3.70
3.347
3.307
3.307
3.331
3.35
3.28
3.39
3.37
3.467
3.359
3.416
3.481
3.44
3.39
3.51
3.54
3.64
3.52
3.57
3.63
3.69
3.56
3.59
3.68
5.07
4.75
4.55
4.56
Apr.
3 ...........
10...........
17...........
2 4 ...........
4.23
4.28
4.58
4.70
4.08
4.13
4.28
4.34
4 .00
4.13
4.38
4.45
4.02
3.98
4.20
4.27
3.521
3.703
4.039
3.770
3.61
3.78
3.96
3.81
3.695
3.754
4.140
3.960
3.72
3.85
4.09
4.02
3.70
3.79
4.10
4.14
3.89
4.02
4.16
4.19
4.85
5.08
5.37
5.59
May
1...........
8 ...........
15...........
2 2 ...........
2 9 ...........
4 .80
5.00
5.00
5.15
5.25
4.39
4.50
4.51
4.79
4.98
4.60
4.83
4.88
4.95
5.00
4.14
4.41
4.59
4.55
4.68
3.865
3.865
3.861
4.352
4.478
3.93
3.84
3.96
4.36
4.38
4.087
4.182
4.178
4.530
4.578
4.22
4.20
4.23
4.49
4.46
4.44
4.46
4.58
4.79
4.73
4.53
4.69
4.75
5.20
5.08
5.77
5.92
5.98
6.20
5.97
Week ending—
1971—Feb.
6 ..................
1 Averages o f daily offering rates of dealers.
2 Averages o f daily rates, published by finance companies, for varying
maturities in the 90-179 day range.
3 Seven-day average for week ending Wednesday.
4 Except for new bill issues, yields are averages computed from daily
closing bid prices.
5 Bills quoted on bank discount rate basis.
6 Certificates and selected note and bond issues.
7 Selected note and bond issues.
A 34
INTEREST RATES □ JUNE 1971
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds
Period
Corporate bonds
State
and local
By selected
rating
United
States
(long
term)
Total i
Aaa
Baa
1962...................................................
1963...................................................
1964...................................................
3.95
4.00
4.15
3.30
3.28
3.28
3.03
3.06
3.09
3.67
3.58
3.54
1965...................................................
1966...................................................
1967...................................................
1968...................................................
1969...................................................
1970...................................................
4.21
4.66
4.85
5.25
6.10
6.59
3.34
3.90
3.99
4.48
5.73
6.42
3.16
3.67
3.74
4.20
5.45
6.12
1970—M ay......................................
June.......................................
July........................................
Aug........................................
Sept.......................................
N ov.......................................
D e c .. . ..................................
6.94
6.99
6.57
6.75
6.63
6.59
6.24
5.97
7.00
7.12
6.68
6.27
6.18
6.41
6.04
5.49
1971—Jan.........................................
Feb.........................................
Mar........................................
Apr........................................
M ay.......................................
5.91
5.84
5.71
5.75
5.96
Stocks
By
group
Dividend/
price ratio
Earnings /
price ratio
Total i
Aaa
Baa
Indus
trial
Rail
road
Public
utility
Pre
ferred
Com
mon
Com
mon
4.62
4.50
4.57
4.33
4.26
4.40
5.02
4.86
4.83
4.47
4.42
4.52
4.86
4.65
4.67
4.51
4.41
4.53
4.50
4.30
4.32
3.37
3.17
3.01
6.06
5.68
5.54
3.57
4.21
4.30
4.88
6.07
6.75
4.64
5.34
5.82
6.51
7.36
8.51
4.49
5.13
5.51
6.18
7.03
8.04
4.87
5.67
6.23
6.94
7.81
9.11
4.61
5.30
5 .74
6.41
7.22
8.26
4.72
5.37
5.89
6.77
7.46
8.77
4.60
5.36
5.81
6.49
7.49
8.68
4.33
4.97
5.34
5.78
6.41
7.22
3.00
3.40
3.20
3.07
3.24
3.83
5.87
6.72
5.71
5.84
6.05
6.28
6.70
6.81
6.40
5.96
5.90
6.07
5.79
5.21
7.33
7.41
7.02
6.65
6.49
6.74
6.33
5.80
8.46
8.77
8.85
8.73
8.68
8.63
8.65
8.35
8.11
8.48
8.44
8.13
8.09
8.03
8.05
7.64
8.98
9.25
9.40
9.44
9.39
9.33
9.38
9.12
8.19
8.55
8.61
8.44
8.40
8.35
8.37
7.95
8.59
8.76
9.11
9.19
9.10
9.06
9.06
8.96
8.72
9.06
9.01
8.83
8.80
8.74
8.77
8.45
7.26
7.57
7.62
7.41
7.31
7.33
7.30
6 .8 8
4.20
4.17
4.20
4.07
3.82
3.74
3.72
3.46
5.34
5.28
5.26
5.49
5.99
5.08
4.92
5.00
5.22
5.71
5.65
5.73
5.56
5.85
6.36
8.04
7.75
7.84
7.86
8.03
7.36
7.08
7.21
7.25
7.53
8.74
8.39
8.46
8.45
8.62
8.57
7.24
7.36
7.43
7.68
8.70
8.39
8.39
8.37
8.40
8.17
7.94
8.08
8.05
8.23
6.53
6.32
6.48
6.59
6.82
3.32
3.18
3.10
2.99
3.04
7.50
6.34
5.48
Week ending—
1971—Mar.
6 ...............................
13...............................
2 0 ...............................
2 7...............................
5.94
5.77
5.65
5.54
5.46
5.24
5.14
5.18
5.15
4.95
4.90
5.00
5.85
5.60
5.40
5.40
7.78
7.84
7.88
7.86
7.13
7.20
7.26
7.25
8.40
8.47
8.50
8.47
7.27
7.32
7.38
7.42
8.37
8.40
8.40
8.38
8.00
8.11
8.13
8.07
6.43
6.53
6.44
6.46
3.18
3.11
3.05
3.10
Apr.
3 ................................
10................................
17................................
2 4 ................................
5.64
5.66
5.73
5.82
5.24
5.33
5.45
5.61
5.00
5.10
5.20
5.30
5.60
5.70
5.80
6.00
7.85
7.84
7.85
7.86
7.22
7.23
7.24
7.24
8.46
8.45
8.45
8.42
7.42
7.42
7.42
7.43
8.38'
8.35
8.38
8.37
8.03
8.02
8.03
8.05
6.53
6.54
6.54
6.62
3.07
3.02
2.98
2.99
May.
1 ................................
8 ...............................
15...............................
2 2...............................
2 9 ...............................
5.81
5.92
5.96
6.04
5.90
5.80
5.96
6.08
6.00
6.00
5.50
5.65
5.80
5.70
5.70
6.15
6.25
6.40
6.40
6.40
7.89
7.95
7.99
8.08
8.12
7.30
7.43
7.48
7.57
7.66
8.47
8.52
8.59
8.69
8.66
7.46
7.57
7.64
7.75
7.77
8.38
8.37
8.38
8.44
8.43
8.10
8.14
8.17
8.28
8.35
6.64
6.69
6.74
6.82
7.03
2.95
2.98
3.01
3.06
3.11
20
30
40
29
40
14
500
71
20
5
5
1 Includes bonds rated Aa and A, data for which are not shown sep
arately. Because o f a limited number o f suitable issues, the number
o f corporate bonds in some groups has varied somewhat. As o f Dec.
23, 1967, Aaa-rated railroad bonds are no longer a component o f the
railroad average or the Aaa composite series.
2 Number o f issues varies over tim e; figures shown reflect most recent
count.
N ote.—Annual yields are averages o f monthly or quarterly data.
Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
119
500
G o vt.: Averages of daily figures for bonds maturing or callable in 10 years
or more. (2) S ta te and local g o vt.: General obligations only, based on
Thurs. figures. (3) C orporate: Averages of daily figures. (2) and (3) are
from Moody’s Investors Service series.
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 two public utility; common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates.
JU N E 1971 □ S EC U R ITY M ARKETS
A 35
SECURITY PRICES
Common stock prices
New York Stock Exchange
Bond prices
(per cent o f par)
Standard and Poor’s index
(1941-43= 10)
Period
U.S.
Govt.
(long
term)
State
and
local
Cor
porate
AAA
1967............................
1968............................
1969............................
1970............................
76.55
72.33
64.49
60.52
100.5
93.5
79.0
72.3
1970—M ay...............
June...............
July................
Aug.................
Sept................
Oct..................
N ov................
D ec.................
57.78
57.37
60.59
59.20
60.10
60.44
63.27
65.63
1971—Jan..................
Feb.................
Mar................
Apr.................
M ay...............
New York Stock Exchange index
(Dec. 31, 1965 = 50)
Amer
ican
Stoc
Ex
change
total
index i
Volume o f
trading in
stocks
(thousands of
shares)
Indus
trial
Rail
road
Public
utility
Total
Indus
trial
Trans
porta
tion
Utility
Fi
nance
81.8
76.4
68.5
61.6
91.93 99.18
98.70 107.49
97.84 106.30
83.22 91.29
46.72
48.84
45.95
32.13
68.10
66.42
62.64
54.48
50.77
55.37
54.67
45.72
51.97
58.00
57.45
48.03
53.51
50.58
46.96
32.14
45.43
44.19
42.80
37.24
49.82
65.85
70.49
54.64
19.67 10,143
27.72 12,971
28.73 11,403
22.59 10,532
4,508
6,353
5,001
3,376
67.8
67.5
70.6
73.8
72.3
71.9
75.1
79.8
61.2
59.5
59.0
60.0
60.8
61.3
61.9
64.7
76.06
75.59
75.72
77.92
82.58
84.37
84.28
90.05
83.16
82.96
83.00
85.40
90.66
92.85
92.58
98.72
31.10
28.94
26.59
26.74
29.14
31.73
30.80
32.95
51.15
49.22
50.91
52.62
54.44
53.37
54.86
59.96
41.65
41.28
41.15
42.28
45.10
46.06
45.84
49.00
43.33
43.40
43.04
44.20
47.43
48.87
48.54
51.68
29.85
28.51
26.46
27.66
30.43
32.38
31.23
33.70
35.48
33.74
34.90
35.74
36.74
36.01
36.71
39.93
54.58
54.21
54.00
56.05
60.13
59.04
57.40
61.95
20.92 12,299
20.81 10,294
20.11 10,358
20.39 10,420
21.72 14,423
22.39 11,887
21.73 11,519
22.19 15,241
3,908
3,189
2,202
2,474
4,438
3,135
2,677
4,330
66.10
66.78
67.94
67.57
65.72
79.9
81.5
82.8
80.4
75.6
66.5
66.8
65.8
65.1
63.7
93.49
97.11
99.60
103.04
101.64
102.22
106.62
109.59
113.68
112.41
36.64
38.78
39.70
42.29
42.05
63.43
62.49
62.42
62.06
59.20
51.29
53.42
54.89
56.81
56.00
53.72
56.45
58.43
60.65
60.21
37.76
40.37
41.71
45.35
45.48
42.52
42.30
41.60
41.73
39.70
66.41
68.19
70.66
73.91
70.89
23.56 17,429
25.02 19,540
25.88 16,955
26.43 19,126
26.03 15,157
4,493
6,054
5,570
5,685
4,157
67.06
66.05
65.70
64.97
66.18
77.8
76.4
75.3
75.3
75.6
65.2 104.34
64.3 103.39
63.9 102.56
63.2 100.98
63.5 99.64
115.35
114.36
113.39
111.68
110.20
43.65
43.02
42.53
41.53
41.12
60.85
60.08
59.93
58.79
57.99
57.51
56.98
56.52
55.61
54.89
61.65
61.19
60.73
59.82
59.10
47.50
46.57
46.09
44.86
44.40
40.97
40.51
40.15
39.42
38.71
74.55
72.60
71.66
70.12
69.12
26.59 20,556
26.39 17.297
26.18 15,960
25.87 14,158
25.68 13,213
6,282
4,734
4,172
4,051
3,672
Total
NYSE AMEX
Week ending—
1971—May
1 .........
8 .........
1 5 ........
2 2 .........
2 9 .........
i Begins June 30,1965, at 10.90. On that day the average price o f a share
of stock listed on the American Stock Exchange was $10.90.
N ote.—Annual data are averages o f monthly figures. Monthly and
weekly data are averages o f daily figures unless otherwise noted and are
computed as follows: U .S. Govt, bonds , derived from average market
yields in table on preceding page on basis o f an assumed 3 per
cent, 20-year bond. M unicipal and corporate bonds, derived from average
yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent,
20-year bond; Wed. closing prices. Common stocks, derived from com
ponent common stock prices. A verage daily volume o f trading, normally
conducted 5 days per week for 5 Vi hours per day, or 2 1 l/ i hours per week.
In recent years shorter days and/or weeks have cut total weekly trading
to the following number o f hours: 1967—Aug. 8-20, 20; 1968—Jan. 22Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-JuIy 3, 20; July 7-Dec. 3122.5; 1970—Jan. 2-M ay 1, 25.
TERMS ON CONVENTIONAL FIRST MORTGAGES
New homes
Period
Con
tract
rate
(per
cent)
Fees &
charges
(per
cent) 1
Maturity
(years)
Loan /
price
ratio
(per
cent)
Existing homes
Pur
Loan
chase
amount
price
(thous.
(thous. of dollars)o f
dollars)
Con
tract
rate
(per
cent)
Fees &
charges
(per
cent) i
Maturity
(years)
Loan/
price
ratio
(per
cent)
Pur
Loan
chase
amount
price
(thous.
of
(thous. of dollars)
dollars)
1964.........................
1965.........................
1966..........................
1967..........................
1968.........................
1969..........................
5.78
5.74
6.14
6.33
6.83
7.66
.57
.49
.71
.81
.89
.91
24.8
25.0
24.7
25.2
25.5
25.5
74.1
73.9
73.0
73.6
73.9
72.8
23.7
25.1
26.6
28.0
30.7
34.1
17.3
18.3
19.2
20.4
22.4
24.5
5.92
5.87
6.30
6.40
6.90
7.68
.55
.55
.72
.76
.83
.88
20.0
21.8
21.7
22.5
22.7
22.7
71.3
72.7
72.0
72.7
73.0
71.5
18.9
21.6
22.2
24.1
25.6
28.3
13.4
15.6
15.9
17.4
18.5
19.9
1970— Apr..............
M ay.............
June.............
July..............
Aug..............
Sept..............
Oct...............
N ov..............
D ec..............
8.24
8.28
8.31
8.32
8.35
8.31
8.33
8.26
8.20
1.02
.98
.99
1.01
.98
1.03
1.05
.99
1.07
24.8
25.3
25.1
25.1
24.8
25.2
25.1
25.3
25.8
71.3
71.7
71.3
71.5
71.6
72.7
72.4
72.1
73.8
34.9
35.8
36.3
35.3
35.7
35.3
34.6
35.8
35.3
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.8
8.19
8.18
8.19
8.21
8.25
8.27
8.20
8.18
8.12
.90
.94
.98
.95
.89
.88
.88
.85
.85
22.7
22.8
23.0
23.1
23.1
22.8
22.8
22.8
23.3
70.2
70.3
71.5
71.5
71.7
71.7
71.5
71.5
71.9
29.6
30.5
30.5
31.0
30.4
29.7
29.0
29.9
30.7
20 .4
21.1
21.5
21.7
21.4
21.0
20.5
21.1
21.7
1971—Jan................
Feb...............
Mar.r..........
Apr...............
8.03
7.74
7.52
7.36
.92
1.00
.83
.74
25.8
26.2
25.9
26.4
73.3
73.9
73.7
73.7
36.2
37.0
35.9
36.5
26.4
26.2
26.0
26.5
7.94
7.67
7.47
7.35
.82
.79
.77
.74
23.5
24.0
24.1
24.1
72.5
73.1
73.5
73.5
30.7
31.1
31.7
31.7
22.0
22.5
23.0
23.0
i
Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, which provide
added income to the lender and are paid by the borrower. They exclude
any closing costs related solely to transfer o f property ownership.
N ote.—Compiled by Federal Home Loan Bank Board in cooperation
with Federal Deposit Insurance Corporation. Data are weighted averages
based on probability sample survey o f characteristics o f mortgages
originated by major institutional lender groups (including mortgage
companies) for purchase o f single-family homes. Data exclude loans for
refinancing, reconditioning, or modernization; construction loans to
homebuilders; and permanent loans that are coupled with construction
loans to owner-builders. Series beginning 1965, not strictly comparable
with earlier data. See also the table on Home-Mortgage Yields, p. A-53.
A 36
STOCK M ARKET C R ED IT □ JU N E 1971
STOCK MARKET CREDIT
REGULATORY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS
(In millions o f dollars)
End of period
(Per cent o f total adjusted debt, except as noted)
Cus
Credit extended to
Cus tomers’
Net
margin customers by— tomers’
credit
net
ex
net
free tended
debit credit
bal
by
Brokers Banks Total ances
bal
l
2
ances brokers
1970—Apr................ 4,360
May............... 4,160
June............... •s/4,1501
13,860/
July................ 3,800
Aug................ 3,810
Sept.. . . . ---- 3,920
Oct................. 4,010
Nov................ 4,010
Dec................ 4,030
2,330
2,290
2,290
2,290
2,300
2,330
2,270
2,320
2,330
6,690
6,450
6,150
6,090
6,110
6,250
6,280
6,332
6,360
1971—Jan.................
Feb.................
Mar................
Apr.................
2,300
2,330
2,360
2,340
6,300
6,420
6,660
6,870
4,000
4,090
4,300
4,530
5,985 2,248
5,433 2,222
5,281 2,009
(4) 52,180
2,083
(4)
2,236
(4)
2,163
(4)
2,197
(4)
2,286
(4)
(4)
(4)
(4)
(4)
3,724
3,211
3,272
(4)
(4)
(4)
(4)
(4)
(4)
2,452
2,743
2,798
2,660
(4)
( 4)
( 4)
( 4)
1 End-of-month data. Total amount o f credit extended by member firms
o f the N.Y. Stock Exchange in margin accounts, excluding credit extended
on convertible bonds and other debt instruments and in special subscrip
tion accounts.
2 Figures are for last Wed. o f month for large commercial banks re
porting weekly and represent loans made to others than brokers or dealers
for the purpose o f purchasing or carrying securities. Excludes loans col
lateralized by obligations o f the U.S. Govt.
3 Change in series. From Jan. 1966 to June 1970 the total o f brokerextended margin credit was estimated by expanding the total o f such
credit extended by a small sample o f N.Y. Stock Exchange member firms
according to the proportion o f total Customers’ net debit balances ex
tended by these firms. Beginning with June 30,1970, total broker-extended
margin credit is derived from reports by the majority o f N .Y. Stock Ex
change member firms that carry margin accounts for customers; these
firms, as a group, account for nearly all such credit extended by members of
that exchange.
4 Series discontinued.
5 Change in series.
N ote.—Customers’ net debit and free credit balances are end-of-month
ledger balances as reported to the New York Stock Exchange by all
member firms that carry margin accounts. They exclude balances carried
for other member firms o f national securities exchanges as well as balances
o f the reporting firm and o f its general partners. Net debit balances are
total debt owed by those customers whose combined accounts net to a
debit. Free credit balances are in accounts o f customers with no unfulfilled
commitments to the broker and are subject to withdrawal on demand. Net
credit extended by brokers is the difference between customers’ net debit
and free credit balances since the latter are available for the brokers’ use
until withdrawn.
EQUITY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS
Adjusted debt/collateral value
(per cent)
End of
period
Under
20
20-29
Unre
strict
ed
1970—Apr..
1.5
End o f
period
1970— A pr..
M ay.
June.
July..
Aug..
Sept..
Oct...
N ov..
D e c ..
1971—Jan. .
F e b ..
Mar..
A pr..
21.8
16.7
Unrestricted
50-59
60 or
more
12.1
9.3
38.6
8,450
Restricted1
May.
June.
July..
Aug..
Sept..
Oct...
N ov..
D e c ..
1.0
1.3
1.1
.7
.6
.7
1.0
.0
4.8
1.0
1.0
1.1
1.1
1.0
0.9
.3
31.8
23.3
32.7
37.8
45.5
38.4
39.0
47.0
13.9
24.9
16.7
14.3
12.0
18.0
16.4
13.7
8.8
9 .4
9 .0
9 .2
8.9
9 .2
9.7
9.5
39.8
40.1
39.5
36.9
31.9
32.6
33.0
29.4
9,100
8,490
8,610
8,580
8,900
8,780
8,570
8,140
1971—Jan. .
Feb. .
Mar..
A pr..
.0
.0
.0
.2
.4
.4
.5
.4
55.1
56.2
58.4
60.6
12.5
13.2
12.7
12.1
8.4
7.7
6.7
6 .0
23.6
22.5
21.6
20.7
8,180
8,410
8,820
9,200
i
Debt representing more than 30 per cent but less than 35 per cent of
collateral value is unrestricted as o f May 6, 1970, but is not separable from
the remainder of this category.
N ote.—Adjusted debt is computed in accordance with requirements set
forth in Regulation T and often differs from the same customer’s net debit
balance mainly because o f the inclusion of special miscellaneous accounts
in adjusted debt. Collateral in the margin accounts covered by these data
now consists exclusively of stocks listed on a national securities exchange.
Unrestricted accounts are those in which adjusted debt does not exceed the
loan value o f collateral; accounts in all classes with higher ratios are
restricted.
SPECIAL MISCELLANEOUS ACCOUNT BALANCES
AT BROKERS, BY EQUITY STATUS OF ACCOUNTS
(Per cent o f total, except as noted)
End o f period
Net
credit
status
Equity class o f accounts
in debit status
Total
balance
(millions
60 per cent Less than of dollars)
or more 60 per cent
Equity class (per cent)
80 or
more
70-79
60-69
50-59
40-49
Under
40
4,360
4,160
3,860
3,800
3,810
3,920
4,010
4,010
4,030
11.8
9 .6
8.3
8.1
10.7
11.4
9.9
10.4
11.0
18.1
15.8
12.4
15.1
15.1
18.3
15.2
14.8
16.1
14.5
18.3
18.8
21.1
22.9
2 4.4
25.5
26.1
27.1
13.8
14.2
15.7
16.0
16.6
16.7
16.9
17.5
16.8
11.6
13.5
13.5
13.8
13.6
13.1
14.3
14.1
13.5
30.2
28.6
31.4
25.8
21.1
16.0
18.2
17.2
15.5
4,000
4,090
4,300
4,530
12.1
11.4
11.8
11.8
19.6
19.5
20.0
20.3
28.3
31.1
33.0
35.0
17.1
16.3
16.2
15.0
10.0
9 .3
7 .2
6 .2
12.8
12.3
11.8
11.7
i See note 1 to table above.
N o te.—Each customer’s equity in his collateral (market value o f col
lateral less net debit balance) is expressed as a percentage o f current col
lateral values.
40-49
Restricted
(Per cent o f total debt, except as noted)
Total
debt
(mil
lions
of
dol
lars) i
30-39
Total
ad
justed
debt
(mil
lions
of
dol
lars)
June.......................
July........................
5 4 .0
50.3
49.5
47.5
46.7
46.6
46.2
45.5
48.2
35.9
38.8
39.1
40.5
42.6
44.5
43.9
43.9
42.3
10.2
10.9
11.4
11.9
10.7
9 .0
9.9
10.6
9 .4
4,1 4 0
4,840
4,550
4,390
4,430
4,480
4,430
4,240
4,030
49.2
49.1
48.6
46.8
43.6
44.2
45.5
48.1
7 .2
6.7
5.9
5.1
4,260
4,380
4,400
4,500
N ote.—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.
J U N E 1971 □ OPEN M ARKET PAPER; SAVINGS IN S T IT U T IO N S
A 37
COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances
Commercial and finance
company paper
Held by—
Placed
directly
Placed through
dealers
End o f period
Accepting banks
ImEx
ports
ports
into
from
United United
States States
Others
Bank
Bank
related Other1 relaled Other2
8,361
9,058
13,279
16,535
20,497
31,709
1970— Apr..
M ay.
June.
July..
Aug..
Sept..
O c t...
N ov..
D ec..
38,011
39,724
37,798
36,961
36,570
33,958
34,401
33,966
31,765
1971—Feb..
Mar..
Apr.P
32,506
31,223
31,367
4
5
6
7
8
9
F.R. Banks
Total
Total
196
196
196
196
196
196
Based on-
Total
Own
bills
Bills
bought
Own
acct.
For
eign
corr.
All
other
1,216
2,223
1,903
3,089
4,901
7,201
10,601
6,138
7,155
10,190
11,634
13,296
3,078 16,814
3,385
3,392
3,603
4,317
4,428
5,451
1,671
1,223
1,198
1,906
1,544
1,567
1,301
1,094
983
1,447
1,344
1,318
370
129
215
459
200
249
94
187
193
164
58
64
122
144
191
156
109
146
1,498
1,837
2,022
2,090
2,717
3,674
667
792
997
1,086
1,423
1,889
999
974
829
989
952
1,153
1,719
1,626
1,778
2,241
2,053
2,408
1,088
1,126
1,044
986
802
505
520
526
409
12,647
12,826
11,945
11,048
11,242
12,013
12,564
12,775
12,262
5,584
6,474
6,559
6,834
6,501
4,115
3,179
2,600
1,940
18,692
19,298
18,250
18,093
18,025
17,325
18,138
18,065
17,154
5,801
5,849
5,973
5,979
5,848
6,167
6,267
7,058
1,577
1,539
1,589
1,599
1,911
1,952
2,125
2,368
2,694
1,314
1,287
1,339
1,324
1,541
1,557
1,737
1,875
1,960
263
252
250
275
370
395
388
493
735
106
42
32
37
63
87
73
87
57
194
231
232
239
253
235
238
243
250
3,737
3,989
3,996
4,098
3,752
3,574
3,731
3,569
4,057
2,034
2,139
2,190
2,294
2,354
2,396
2,553
2,490
2,601
1,137
1,189
1,162
1,198
1,294
1,285
1,323
1,388
1,561
2,444
2,472
2,497
2,482
2,331
2,167
2,292
2,390
2,895
383 13,538
355 13,215
431 13,058
1,518
1,337
1,363
17,067
16,316
16,515
7,301
3,089
2,954
2,893
2,306
2,276
2,320
784
678
573
54
138
56
266
255
236
3,575
3,827
4,115
2,618
2,681
2,748
1,520
1,519
1,510
2,847
2,974
3,043
1 As reported by dealers; includes finance company paper as well as
2 As reported by finance companies that place their paper directly with
other commercial paper sold in the open market.
investors.
MUTUAL SAVINGS BANKS
(In millions of dollars)
Securities
Loans
End o f period
Mort
gage
Other
U.S.
Govt.
State
and
local
govt.
Corpo
rate
and
other1
Cash
Other
assets
Total
assets—
Total
liabili
ties
and
general
reserve
accts.
Depos
its2
Mortgage loan
commitments3
classified by maturity
(in months)
Other General
liabili reserve
ac
ties
counts
3 or
less
3-6
6-9
Over
9
Total
1960................
1961.................
1962................
1963.................
1964................
26,702
28,902
32,056
36,007
40,328
416
475
602
607
739
6,243
6,160
6,107
5,863
5,791
672
677
527
440
391
5,076
5,040
5,177
5,074
5,099
874
937
956
912
1,004
589
640
695
799
886
40,571
42,829
46,121
49,702
54,238
36,343
38,277
41,336
44,606
48,849
678
781
828
943
989
3,550
3,771
3,957
4,153
4,400
1965................
1966................
1967.................
1968................
1969.................
44,433
47,193
50,311
53,286
55,781
862
1,078
1,203
1,407
1,824
5,485
4,764
4,319
3,834
3,296
320 5,170
251 5,719
219 8,183
194 10,180
200 10,824
1,017
953
993
996
912
944
1 024
1,138
1,256
1,307
58,232
60,982
66,365
71,152
74,144
52,443
55,006
60,121
64,507
67,026
1,124
1,114
1,260
1,372
1,588
4,665
4,863
4,984
5,273
5,530
742
811
584
2,697
2,010
982
799 2,523
1.034
1,166 3,011
452
485
946 2,467
1970—A p r....
M ay...
June...
July. . .
A u g ....
Sept.. .
Oct.. . .
N o v ....
D e c.r .
56,279
56,423
56,644
56,804
56,986
57,202
57,398
57,473
57,775
2,048
2,223
2,131
2,239
2,249
2,240
2,291
2,332
2,255
3,294
3,362
3,214
3,241
3,271
3,281
3,215
3,219
3,151
188
190
197
196
197
197
207
205
197
11,319
11,465
11,766
11,945
12,099
12,222
12,243
12,378
12,876
853
852
956
920
972
1,001
1,035
1,112
1,270
1,385
1,374
1,404
1,459
1,464
1,459
1,465
1,483
1,471
75,366
75,889
76,312
76,804
77,238
77,602
77,855
78,202
78,995
67,861
68,196
68,724
69,039
69,222
69,817
70,093
70,361
71,580
1,906
2,071
1,957
2,121
2,327
2,087
2,051
2,111
1,690
5,599
5,621
5,631
5,643
5,689
5,698
5,712
5,730
5,726
603
616
646
665
603
635
596
564
619
500
502
474
457
406
334
338
315
322
455
388
363
351
332
266
274
311
302
801
769
707
678
715
691
666
662
688
2,360
2,275
2,190
2,151
2,057
1,926
1,875
1,852
1,931
1971—Jan.. . .
F e b ....
M ar.. .
Apr.. . .
58,014
58,194
58,540
58,796
2,365
2,592
2,636
2,727
3,196
3,328
3,356
3,340
206
222
246
278
13,457
13,919
14,882
15,519
1,129
1,270
1,287
1,254
1,564
1,575
1,635
1,656
79,930
81,100
82,581
83,570
72,441
73,366
75,002
75,824
1,739
1,926
1,746
1,882
5,750
5,809
5,832
5,863
638
723
840
322
352
413
993
285
283
322
445
705
790
864
360
1,950
2,148
2,439
2,804
1 Also includes securities o f foreign governments and international
organizations and nonguaranteed issues o f U.S. Govt, agencies.
2 See note 6, p. A-19.
3 Commitments outstanding o f banks in New York State as reported to
the Savings Banks Assn. o f the State o f New York. Data include building
loans beginning with Aug. 1967.
1,200
1 654
2! 548
2,549
2,820
N ote.—National Assn. of Mutual Savings Banks data; figures are
estimates for all savings banks in the United States and differ somewhat
from those shown elsewhere in the B u lle tin ; the latter are for call dates
and are based on reports filed with U.S. Govt, and State bank supervisory
agencies. Loans are shown net o f valuation reserves.
A 38
SAVINGS IN S TITU TIO N S □ JU N E 1971
LIFE INSURANCE COMPANIES
(In millions o f dollars)
Government securities
End o f period
Total
assets
Total
Business securities
United State and Foreign1
States
local
Total
Bonds
Stocks
Mort
gages
Real
estate
Policy
loans
Other
assets
Statement value:
1961.
1962.
1963.
1964.
1965.
1966.
1967.
1968.
126,816
133,291
141,121
149,470
158,884
167,022
177,832
188,636
11,896
12,448
12,438
12,322
11,679
10,837
10,573
10,509
6,134
6,170
5,813
5,594
5,119
4,823
4,683
4,456
3,888
4,026
3,852
3,774
3,530
3,114
3,145
3,194
1,874
2,252
2,773
2,954
3,030
2,900
2,754
2,859
55,294
57,576
60,780
63,579
67,599
69,816
76,070
82,127
49,036
51,274
53,645
55,641
58,473
61,061
65,193
68,897
6,2:58
6,302
7,135
7,938
9,126
8,755
10,877
13,230
44,203
46,902
50,544
55,152
60,013
64,609
67,516
69,973
4,007
4,107
4,319
4,528
4,681
4,883
5,187
5,571
5,733
6,234
6,655
7,140
7,678
9,117
10,059
11,306
5,683
6,024
6,385
6,749
7,234
7,760
8,427
9,150
Book value:
1966.
1967
1968.
1969.
167,022
177,361
187,695
197,208
10,864
10,530
10,483
10,914
4,824
4,587
4,365
4,514
3,131
2,993
3,036
3,221
2,909
2,950
3,082
3,179
68,677
73,997
79,403
84,566
61,141
65,015
68,575
70,859
7,536
8,982
10,828
13,707
64,661
67,575
70,071
72,027
4,888
5,188
5,573
5,912
9,911
10,060
11,284
13,825
8,801
11,011
10,881
9,964
N ov.................................
D ec.................................
198,808
199,403
199,090
199,173
199,683
201,002
201,918
203,148
203,922
205,064
206,193
10,991
10,941
10,833
10,895
10,788
11,071
11,090
11,004
11,029
11,049
10,967
4,563
4,505
4,414
4,472
4,401
4,650
4,653
4,561
4,565
4,588
4,494
3,232
3,242
3,223
3,226
3,222
3,251
3,255
3,265
3,277
3,281
3,285
3,196
3,194
3,196
3,197
3,165
3,170
3,182
3,178
3,187
3,180
3,188
85,390
85,344
85,103
84,633
84,656
85,404
85,841
86,675
87,099
87,755
88,183
71,734
71,532
71,764
71,858
71,894
72,200
72,497
72,915
73,389
73,644
73,123
13,656
13,812
13,339
12,775
12,762
13,204
13,344
13,760
13,710
14,111
15,060
72,448
72,616
72,793
72,982
73,165
73,352
73,427
73,540
73,728
73,848
74,345
5,975
5,990
6,030
6,061
6,103
6,144
6,158
6,202
6,255
6,311
6,362
14,302
14,535
14,759
14,951
15,180
15,354
15,517
15,674
15,813
15,918
16,025
9,702
9,977
9,572
9,651
9,791
9,677
9,885
10,053
9,998
10,183
10,311
Feb.................................
208,206
209,885
11,027
11,126
4,557
4,632
3,298
3,319
3,172
3,175
90,127
91,038
74,326
74,696
15,801
16,342
74,370
74,437
6,341
6,453
16,109
16,220
10,232
10,611
1970—Feb.r..............................
Mar................................
Apr.................................
M ay...............................
June...............................
July................................
Aug.................................
Sept.................................
1971-
i
Issues o f foreign governments and their subdivisions and bonds of
Year-encl figures: Annual statement asset values, with bonds carried
on an amortized basis and stocks at year-end market value. M onth-end
the International Bank for Reconstruction and Development.
figures: Book value o f ledger assets. Adjustments for interest due and
accrued and for differences between market and book values are not made
N o te.—Institute o f Life Insurance data; figures are estimates for all
on each item separately but are included in total, in “Other assets.”
life insurance companies in the United States.
SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)
End o f period
Other2
Total
assets—
Total
liabilities
3,315
3,926
3,979
4,015
3,900
3,366
3,442
2,962
2,439
4,775
5,346
6,191
7,041
7,960
8,378
9,107
9,571
8,620
11,554
12,108
12,097
12,742
12,826
12,850
13,277
13,340
13,058
2,359
2,523
2,643
2,404
2,413
2,455
2,715
3,155
3,520
15,506
16,805
18,335
18,331
2,930
3,249
3,376
3,139
Mort
gages
Invest
ment
secur
ities i
1961.........................
1962.........................
1963.........................
1964.........................
1965.........................
1966.........................
1967.........................
1968.........................
1969 5......................
68,834
78,770
90,944
101,333
110,306
114,427
121,805
130,802
140,347
5,211
5,563
6,445
6,966
7,414
7,762
9,180
1 11,116
10,893
1970 5—Apr............
M ay...........
June...........
July............
Aug............
Sept...........
Oct.............
N ov...........
D ec............
141,390
142,113
143,241
144,320
145,434
146,556
147,712
148,896
150,562
1971 —Jan..............
Feb.............
M ar.r........
Apr.®.........
151,503
152,665
154,430
156,564
Cash
Outstand
ing at
end of
period
Savings
capital
Reserves
and un
divided
profits
Bor
rowed
money3
Loans
in
process
82,135
93,605
107,559
119,355
129,580
133,933
143,534
152,890
162,299
70,885
80,236
91,308
101,887
110,385
113,969
124,531
131,618
135,670
5,708
6,520
7,209
7,899
8,704
9,096
9,546
10,315
11,239
2,856
3,629
5,015
5,601
6,444
7,462
4,738
5,705
9,728
1,550
1,999
2,528
2,239
2,198
1,270
2,257
2,449
2,455
1,136
1,221
1,499
1,729
1,849
2,136
2,462
2,803
3,207
807
1,872
2,193
2,572
2,549
2,707
1,482
3,004
3,584
2,812
8,852
8,986
9,052
8,999
9,091
9,182
9,248
9,356
9,434
164,155
165,730
167,033
168,465
169,764
171,043
172,952
174,747
176,574
136,260
137,013
138,814
139,357
139,907
141,734
142,825
143,928
146,744
11,252
11,254
11 ,620
11,617
11,615
11,609
11,588
11,592
12,012
10,056
10,169
10,480
10,555
10,622
10,705
10,721
10,691
10,942
2,224
2,294
2,461
2,530
2,581
2,679
2,747
2,838
3,087
4,363
5,000
3,658
4,406
5,039
4,316
5,071
5,698
3,789
1,391
1,588
1,544
1 ,700
1,531
1,628
1,711
1,628
1,602
3,487
3,956
4,038
4,333
4,303
4,354
4,539
4,633
4,393
9,386
9,524
9,668
9,822
179,325
182,243
185,809
187,856
149,298
151,742
155,845
158,062
12,056
12,062
12,044
12,025
10,494
10,097
9,838
8,645
3,055
3,161
3,500
3,875
4,422
5,181
4,577
5,249
1,665
2,069
3,130
3,350
4,565
5,225
6,445
7,340
1 U.S. Govt, securities only through 1967. Beginning 1968 the total
reflects liquid assets and other investment securities. Included are U.S.
Govt, obligations, Federal agency securities, State and local govt, securi
ties, time deposits at banks, and miscellaneous securities, except FHLBB
stock. Compensating changes have been made in “Other assets.”
2 Includes other loans, stock in the Federal home loan banks, other
investments, real estate owned and sold on contract, and office buildings
and fixtures. See also note 1.
3 Consists o f advances from FHLBB and other borrowing.
4 Insured savings and loan assns. only. Data on outstanding commit
Mortgage loan
commitments4
Liabilities
Assets
Other
Made
during
period
ments are 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 Balance sheet data for all operating savings and loan associations
were revised by the Federal Home Loan Bank Board for 1969 and 1970.
N o t e . — Federal Home Loan Bank Board 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.
J U N E 1971 a FEDERALLY SPONSORED C R E D IT AGENCIES
A 39
MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
Assets
End o f
period
Liabilities and capital
Cash
and
de
posits
Ad
vances
to
mem
bers
Invest
ments
1967...............
1968...............
1969...............
1970...............
4,386
5,259
9,289
10,614
2,598
2,375
1,862
3,864
127
126
124
105
4,060
4,701
8,422
10,183
1,432
1,383
1,041
2,332
1970—Apr...
M ay..
June..
July. .
Aug...
Sept...
O ct...
Nov...
D ec...
9,860
10,008
10,236
10,372
10,445
10,524
10,539
10,524
10,614
3,090
2,964
2,844
2,704
2,729
2,722
2,658
3,204
3,864
89
78
106
70
99
109
84
135
105
9,993
9,888
9,880
10,029
10,091
10,089
10,090
9,838
10,183
1971—Jan.
F eb...
M ar..
Apr...
10,326
9,926
9,689
8,269
4,101
4,187
4,322
4,235
112
105
116
192
9,836
9,182
8,756
7,876
Bonds
and
notes
Mem
ber
de
posits
Federal National
Mortgage Assn.
(secondary market
operations)
Banks
for
cooperatives
Mort
gage
loans
(A)
Deben
tures
and
notes
(L)
Loans
to
cooper
atives
(A)
Deben
tures
1,395
1,402
1,478
1,607
5,348
6,872
10,541
15,502
4,919
6,376
10,511
15,206
1,110
1,189
1,333
1,194
1,244
1,340
1,499
1,981
2,332
1,574
1,579
1,586
1,592
1,595
1,598
1,598
1,601
1,607
12,456
13,287
13,659
14,085
14,452
14,815
14,702
15,397
15,502
2,751
3,094
3,425
2,828
1,599
1,619
1,628
1,627
15,619
15,552
15,420
15,308
Capital
stock
N ote.—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 o f FHLB’s.
Bonds, debentures, and notes are valued at par. They include only publicly
Federal
intermediate
credit banks
Deben
tures
(L)
Loans
and
dis
counts
(A)
1,506
1,577
1,732
2,030
1,253
1,334
1,473
1,755
12,411
12,605
13,165
13,401
13,976
14,396
14,702
15,067
15,206
1,828
1,796
1,749
1,762
1,778
1,852
1,973
2,020
2,030
15,311
15,111
15,122
15,477
2,119
2,164
2,153
2,113
Federal
land
banks
Bonds
(L)
Mort
gage
loans
(A)
3,411
3,654
4,275
4,974
3,214
3,570
4,116
4,799
5,609
6,126
6,714
7,186
4,904
5,399
5,949
6,395
1,594
1,539
1,509
1,518
1,537
1,537
1,601
1,700
1,755
4,810
4,942
5,097
5,034
5,015
4,998
4,972
4,934
4,974
4,591
4,739
4,879
4,980
4,918
4,839
4,818
4,767
4,799
6,890
6,943
6,995
7,026
7,061
7,101
7,137
7,156
7,186
6,113
6,113
6,179
6,259
6,339
6,339
6,395
6,395
6,395
1,786
1,819
1,819
1,900
5,055
5,177
5,380
5,568
4,845
4,959
5,077
5,336
7,210
7,258
7,347
7,426
6,395
6,645
6,645
6,700
(L)
offered securities (excluding, for FHLB’s bonds held within the FHLB
System) and are not guaranteed by the U.S. G ovt.; for a listing o f these
securities, see table below. Loans are gross of valuation reserves and
represent cost for FNM A and unpaid principal for other agencies.
OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, APRIL 30, 1971
Agency, and date o f issue
and maturity
Cou
pon
rate
Amount
(millions
o f dollars)
Federal home loan banks1
Notes:
Bonds:
5/26/69 -- 5/25/71...
5/25/70 -- 5/25/71. . .
2/25/70 -- 6/25/71...
7/27/70 -- 7/27/71.. .
8/25/70 -- 8/25/71.. .
9/25/70 -- 9/27/71 . . .
10/27/69 - 11/26/71.
11/25/69 - 2/25/72..
6/26/70 - ■2/25/72. ..
5/25/70 - • 5/25/72. . .
9/25/70 - 11/27/72. .
2/25/70 - - 2/26/73. . .
3/25/71 - 5/25/73... .
10/27/70 - 8/27/73...
1/26/70 - ■ 1/25/74...
6/26/70 - • 2/25/74. . .
8/25/69 - ■8/25/74.. .
11/25/69 - 11/25/74.
1/26/71 - 2/25/75....
8/25/70 - • 5/26/75 . . .
7/27/70 - • 8/25/75. . .
12/18/70 - 11/25/75..
3/25/70 - ■ 2/25/80. . .
10/15/70 - 10/15/80..
Federal National Mortgage
Association—
Secondary market
operations
Discount notes...................
Capital debentures:
9/30/68 - 10/1/73.........
4/1/70 - 4/1/75 .............
Mortgage-backed bonds:
6/1/70 - 6/1/71...........
9 /9 /7 0 - 10/2/72...........
6/1/70 - 6/2/75...........
9 /2 9 /7 0 - 10/1/90.........
Debentures:
11/10/69 - 5/10/71.
4/10/69 - 6/10/71. .
12/12/69 - 7/12/71.
8/23/60 - 8/1 0 /7 1 ..
7.00
8.20
8.45
m
7.65
7.35
8.20
8.20
8.20
8.15
m
8.35
4 .20
7.20
8.4 0
8.4 0
7.65
8.05
6.10
8.00
7.95
6.50
7.75
7.80
350
500
586
433
588
338
250
200
300
200
250
350
400
450
300
250
183
234
250
265
300
350
350
200
1,826
6.00
8.00
8.13
7 .50
8.38
8.63
8.20
6.85
8.6 0
4K
250
200
150
400
250
200
400
250
400
63
Agency, and date of issue
and maturity
Federal National Mortgage
Association—Cont.
Debentures—Cont:
4/10/70 - 8/10/71___
7/10/70 - 8/10/71___
9/11/61 - 9 /1 0 /7 1 ....
9/10/68 - 9 /1 0 /7 1 ....
6/10/70 - 10/21/71.. .
5/10/69 - 11/10/71...
3/10/70 - 12/10/71. ..
2/10/60 - 2/10/72.
3/10/69 - 3/10/72___
10/14/69 - 3/10/72...
12/11/61 - 6/12/72...
2/10/70 - 6/12/72___
5/11/70 - 9/11/72___
6/10/70 - 9 /1 1 /7 2 ....
11/10/69 - 12/11/72. .
10/13/70 - 12/11/72. .
11/10/70 - 3/12/73. . .
12/12/69 - 3/12/73...
6/12/61 - 6/12/73. . ..
7/10/70 - 6/12/73....
3/10/70 - 9/10/73___
12/10/70 - 12/10/73. .
4/10/70 - 3/11/74___
8/5/70 - 6/10/74.......
9/10/69 - 9/10/74___
2/10/71 - 9/10/74........
5/10/71 - 12/10/74....
11/10/70 - 3/10/75. . .
4/12/71 -6/10/75........
10/13/70 - 9/10/75. . .
3/11/71 - 3/10/76........
2/13/62 - 2/10/77.
12/10/70 - 6/10/77. . .
5/10/71 -6/10/77 ........
1/21/71 - 6/10/81.. ..
2/10/71 - 6/10/82........
3/11/71 -6/10/83........
4/12/71 -6/11/84........
Banks for cooperatives
Debentures:
11/2/70 - 5/3/71........
12/10/70 - 6/1/71
1/4/71 - 7/1/71 ..........
2/1/71 -8 /2 /7 1 ............
4/1/71 - 10/4/71..........
10/1/70 - 10/1/73___
Cou Amount
pon
(millions
rate o f dollars)
7.38
8.05
4%
53/4
8.45
6.85
6%
5K
6 y4
6*4
4^8
200
250
96
350
500
350
500
98
250
200
100
8 .70
8.40
7.40
300
400
7.20
7.30
8.30
400
450
250
146
350
300
500
350
400
250
300
250
300
500
350
500
198
250
150
250
250
8.00
41,4
8.35
8.10
5.75
7.75
7.90
7.85
5.65
6.10
7.55
5.25
7.50
5.65
4y2
6.38
6.50
7.25
6.65
6.75
6.25
6.70
5.70
5.25
4.50
3.70
7.30
1 Data for changes in Oct. and Nov. 1970 not yet available.
N ote.—These securities are not guaranteed by the U.S. Govt.; see also note to table above.
200
200
200
200
343
371
335
420
331
100
Agency, and date o f issue
and maturity
Federal intermediate
credit banks
Debentures:
8 /3 /7 0 - 5 /3/71...
9 /1 /7 0 - 6 /1 /7 1 ...
10/1/70 - 7/1/71.
11/2/70 - 8/2/71.
12/1/70 - 9/1/71 .
1/4/71 - 10/4/71.
2/1/71 - 11/1/71..
3/1/71 - 12/1/71. .
4/1/71 - 1/3/72. ..
3/2/70 - 3/1/73. .
9 /1 /7 0 - 7 /2 /7 3 ...
1/4/71 _ 7/1/74..
Federal land banks
Bonds:
2/15/57 - 2/15/67-72.
5/1/56 - 5/1/71 ..........
7/15/69 - 7/20/71___
10/20/69 - 7/20/71...
10/20/68 - 10/20/71. .
8/20/68 - 2/15/72.
2/23/71 - 4/20/72........
6/22/70 - 7/20/72
9/14/56 - 9 /1 5 /7 2 ....
9/22/69 - 9/15/72.
10/23/72 - 10/23/72. .
7/20/70 - 1/22/73----2/20/63 - 2/20/73-78.
1/20/70 - 7 /2 0 /7 3 ....
8/20/73 - 7/20/73.......
4/20/70 - 10/22/73. . .
2/20/72 - 2 /2 0 /7 4 ....
10/20/70 - 4/22/74. . .
4/20/71 -4/20/72 ........
2/20/70 - 1/20/75. . ..
4/20/71 - 10/21/74....
4/20/65 - 4 /2 1 /7 5 ....
2/21/66 - 2 /2 4 /7 6 ....
7/20/66 - 7/2 0 /7 6 ....
5/2/66 - 4/20/78........
2/20/67 - 1/22/79....
2/23/71 -4/20/81........
Cou
pon
Amount
(millions
o f dollars)
7.25
7.30
7.10
6.80
5.70
5.30
4.55
4.0 0
3.85
8.15
7.75
5.95
472
282
547
584
412
423
676
623
691
203
4^
72
60
270
232
447
230
300
442
109
337
3%
8.15
8.45
6.00
5.70
4.45
8.20
3%
8.35
5K
7.95
4^
8.45
7.95
7.80
4%
7.30
4%
8^8
5.30
4^
5 .00
5K
5^
5.00
6.70
200
224
200
407
148
198
350
300
155
354
437
220
300
200
123
150
150
285
224
A 40
FEDERAL FINANCE □ J U N E 1971
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions of dollars)
U.S. budget
Means o f financing
Receipt-expenditure account
Borrowings from the public 2
Period
Budget
receipts
Net
ex
pendi
tures
Fiscal year:
196 7
196 8
196 9
197 0
149,552
153,671
187,784
193,743
153,201
172,802
183,072
194,456
Half year:
1969—Jan.-June
July-Dee.
1970—Jan.-June
July-Dee.
104,886 90,863
90,833 97,563
102,910 96,893
87,562 104,084
M onth:
1970—Ap r
May........
June........
July........
Aug.........
Sept........
Oct.........
Nov........
Dec.........
r22,006 *■17,828
13,986 16,337
22,561 14,871
12,609 19,344
15,172 17,429
18,725 17,329
11,493 17,490
14,134 16,616
15,429 15,876
1971—Ja............ n
Feb.........
Mar........
Apr.........
15,773
15,130
13,205
21,024
Budget
out
lays1
Net
lend
ing
16,870
16,717
18,328
17,769
Budget
surplus
or
deficit
(-)
Less: Cash and
monetary assets
Less: Invest
Public Plus: ments by Govt,
Equals: Trea
debt Agency
accounts
Less:
Total
sury
securi securi
Special borrow operat
ties
ties
notes 3
ing
ing
Special Other
balance
issues
Other
means
of
financ
ing,
net4
Other
158,254 -8 ,7 0 2 6,314 5,079
178,833 -25,161 21,357 5,944
3,236 6,142
633
184,548
196,588 -2,8 4 5 17,198 -1,739
5,035
3,271
7,364
9,386
4,000 -482
2,838
2,049 -1,119 23,100
2,089 -1,384 -1,295
676
5,397
-5,222
-397
596
2,151
-815
500 91,362 13,523 -4 ,3 0 9
1,364 98,927 -8 ,0 9 3 14,505 -429
5,248 2,693 -1,310
767 97,661
99 104,183 -16,621 18,240
-1 9
7,643
3,935
5,451
1,807
604 -1,000 -12,370
330
9,811
346
-4,415
157
16,257
1,194
-767
2,918
54
1,590 1,630
315 -2 ,1 7 0
-896 1,188
-952
-5 3 4
r161
r961
-1,258 -1,259
265 -1,755
-386
-3 1 2
-367
-818
7 1,570
-192 1,011
-71 -1,212
-5 4
-7 7 2
5,053
6,030
1,476
2,131
201 r18,029
108 16,445
480 15,351
-1 7
19,327
66 17,495
114 17,443
150 17,640
112 16,728
-326 15,550
"3,975 -4,813
-2,459 3,893
7,210 -169
-6,718 5,649
-2,323 4,333
1,281 -2,223
-6,147 1,522
-2,594 3,440
-121 5,519
245
-170
318
49
-1,341
-1,417
-5,441
3,206
17,115
16,546
18,646
17,818
-3 9
-285
-278 1,565
-160 2,909
-233
-3 8
-3
1,539
12 -8 9 0
-1 7 -1,178
-5
81
31 2,487
-818 1,013
2,324 -1,001
1,003
518
223 -345
-551
1,464
522
221
123
599
-8 2
-153
76
27
122
48
38
-4,691
1,452
-3,156
5,997
2,716
-1,347
2,561
3,306
3,024
85
-1,008
2,034
-646
-5 8
1,497
-2,383
-429
2,185
86
-382
324
-7 1
660
240
675
-271
1,518
-1,718
-3,370
4,365
304
1,700
1,616
-581
654
-193
57
527
945
3,364
269
-9 8 2
2,854
-7 3 4
1,453
1,957
Selected balances
Treasury operating balance
End
of
period
F.R.
Banks
Tax
and
loan
accounts
Gold
balance
Federal securities
Total
Public
debt
securities
Agency
securities
Less:
Investments of
Govt, accounts
Special
issues
Other
Less:
Special
notes 3
Equals:
Total
held
by
public
Memo:
Debt of
Govt.sponsored
corps.—
Now
private 5
Fiscal year:
1967........................
1968........................
1969........................
1970........................
1,311
1,074
1,258
1,005
4,272
4,113
4,525
6,929
112
111
112
111
5,695
5,298
5,894
8,045
326,221
347,578
353,720
370,919
18,455
24,399
14,249
12,510
56,155
59,374
66,738
76,124
17,663
19,766
20,923
21,599
3,328
2,209
825
825
267,529
290,629
279,483
284,880
9,220
10,041
24,991
35,789
Calendar year:
1969........................
1970........................
1,312
1,156
3,903
6,834
112
109
5,327
8,099
368,226
389,158
13,820
12,491
70,677
77,931
21,250
21,756
825
825
289,294
301,138
30,578
M onth:
1970—Apr..............
M ay............
June.............
July..............
Aug..............
Sept.............
Oct...............
Nov.............
Dec..............
1,784
1,295
1,005
1,200
1,056
1,238
920
587
1,156
5,123
4,605
6,929
6,087
6,174
7,489
5,424
5,217
6,834
111
111
111
111
111
111
111
110
109
7,019
6,011
8,045
7,399
7,341
8,839
6,455
5,914
8,099
367,194
371,088
370,919
376,568
380,901
378,678
380,200
383,640
389,158
12,948
12,670
12,510
12,471
12,469
12,481
12,465
12,460
12,491
71,650
73,215
76,124
75,891
77,431
76,541
75,363
75,444
77,931
21,082
21,681
21,599
21,446
21,521
21,548
21,669
21,71.7
21,756
825
825
825
825
825
825
825
825
825
286,584
288,036
284,880
290,877
293,593
292,246
294,808
298,113
301,138
34,851
35,068
35,762
36,398
37,116
37,404
37,811
38,252
38,802
1971—Jan...............
F e b .............
Mar..............
Apr...............
976
1,064
858
1,322
8,532
6,725
3,561
7,462
109
109
109
109
9,616
7,898
4,528
8,893
388,341
390,664
391,668
391,891
13,504
12,503
13,021
12,676
77,380
78,843
79,366
79,586
21,842
21,461
21,784
21,714
825
825
825
825
301,798
302,038
302,713
302,442
'38,693
38,183
37,814
1 Equals net expenditures plus net lending.
2 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 securites 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.
3 Represents non-interest-bearing public debt securities issued to the
International Monetary Fund and international lending organizations.
New obligations to these agencies are handled by letters of credit.
4 Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
5 Includes debt of Federal home loan banks, Federal land banks, D.C.
Stadium Fund, FNMA (beginning Sept. 1968), FICB, and banks for
cooperatives (beginning Dec. 1968).
N ote.—Half years may not add to fiscal year totals due to revisions in
series which are not yet available on a monthly basis.
J U N E 1971 o FEDERAL FINANCE
A 41
FEDERAL FISCAL OPERATIONS: DETAIL
(In millions of dollars)
B u d g e t receip ts
S o c ia l in su ra n ce ta x es
an d co n trib u tio n s
C o r p o r a tio n
in c o m e taxes
In d iv id u a l in c o m e taxes
E m p lo y m e n t
ta x es an d
c o n tr ib u tio n s 1
P eriod
T o ta l
W ith
h eld
F isca l year:
1 9 6 7 ...............................................
1 9 6 8 ...............................................
1 9 6 9 ...............................................
1 9 7 0 ...............................................
1 4 9 ,5 5 2
1 5 3 ,6 7 1
1 8 7 ,7 8 4
1 9 3 ,7 4 3
H a lf year:
1969— J a n .-J u n e .................... 1 0 4 ,8 8 6
J u ly - D e e ...................... 9 0 ,8 3 3
1970— J a n .-J u n e .................... 1 0 2 ,9 1 0
J u ly -D e e ....................... 8 7 ,5 6 2
1 5 ,7 7 3
1 5 ,1 3 0
1 3 ,2 0 5
2 1 ,0 2 4
R e
fu n d s
N et
to ta l
G ro ss
re
c eip ts
R e
funds
Pay
r o ll
ta x es
Unem p l.
insur.
S elfem p l.
O th er
n et
N et
re
to ta l
c e ip t s 2
E x cise
ta x es
C u s
to m s
E sta te M isc .
and
re
g ift ce ip ts 3
1 8 ,8 5 0 7 ,8 4 5
2 0 ,9 5 1 9 ,5 2 7
2 7 ,2 5 8 1 0 ,1 9 1
2 6 ,2 3 6 1 3 ,2 4 0
6 1 ,5 2 6
6 8 ,7 2 6
8 7 ,2 4 9
9 0 ,4 1 2
3 4 ,9 1 8
2 9 ,8 9 7
3 8 ,3 3 8
3 5 ,0 3 7
946
1 ,2 3 2
1 ,6 6 0
2 ,2 0 8
2 6 ,0 4 7
2 7 ,6 8 0
3 2 ,5 2 1
3 7 ,1 9 0
1 ,7 7 6
1 ,5 4 4
1 ,7 1 5
1 ,9 4 2
3 ,6 5 9
3 ,3 4 6
3 ,3 2 8
3 ,4 6 5
1 ,8 6 7
2 ,0 5 2
2 ,3 5 3
2 ,7 0 0
3 3 ,3 4 9
3 4 ,6 2 2
3 9 ,9 1 8
4 5 ,2 9 8
1 3 ,7 1 9
1 4 ,0 7 9
1 5 ,2 2 2
1 5 ,7 0 5
1 ,9 0 1
2 ,0 3 8
2 ,3 1 9
2 ,4 3 0
2 ,9 7 8
3 ,0 5 1
3 ,4 9 1
3 ,6 4 4
2 ,1 0 8
2 ,4 9 1
2 ,9 0 8
3 ,4 2 4
3 6 ,4 4 6 2 1 ,7 4 3 9 ,7 1 5
3 8 ,7 9 7 5 ,7 7 1
481
3 8 ,6 1 9 2 0 ,4 6 5 1 2 ,7 5 9
565
3 7 ,4 4 5 5 ,5 6 9
4 8 ,4 7 4
4 4 ,0 8 7
4 6 ,3 2 5
4 2 ,4 4 9
2 2 ,8 4 4
1 5 ,1 7 9
1 9 ,8 5 8
1 2 ,7 4 4
876
982
1 ,2 2 6
1 ,4 6 7
1 7 ,5 7 7
1 7 ,0 5 7
2 0 ,1 3 4
1 7 ,7 6 8
1 ,5 8 4
131
1 ,8 1 1
133
2 ,0 3 9
1 ,2 7 0
2 ,1 9 6
1 ,3 4 8
1 ,1 7 4
1 ,2 8 2
1 ,4 1 6
1 ,5 7 6
2 2 ,3 7 4
1 9 ,7 4 0
2 5 ,5 5 8
2 0 ,8 2 6
7 ,3 8 8
8 ,2 4 1
7 ,4 6 4
8 ,1 5 2
1 ,1 0 6
1 ,2 6 3
1 ,1 6 8
1 ,3 1 7
2 ,0 7 4
1 ,4 9 6
2 ,1 4 8
1 ,5 3 7
1 ,5 0 4
1 ,8 0 9
1 ,6 1 5
2 ,0 0 5
8 ,9 9 2 r4 ,0 5 6 1 0 ,6 7 7
1 ,0 6 3 2 ,8 6 3 5 ,2 5 8
3 ,7 9 7
4 5 8 9 ,3 5 3
47 7
2 3 6 6 ,2 8 1
333
100 7 ,2 1 9
3 ,6 2 3
81 9 ,4 4 9
55 6 ,1 1 0
497
42 7 ,1 8 1
216
422
50 6 ,2 0 9
4 ,8 9 5
862
7 ,5 1 7
1 ,0 7 1
666
4 ,5 4 3
1 ,0 8 9
711
4 ,6 6 4
r301
148
188
234
182
265
42 0
187
179
2 ,8 4 7
4 ,5 8 5
3 ,2 9 4
2 ,7 4 5
4 ,4 9 4
2 ,5 2 1
2 ,3 1 1
3 ,4 7 4
2 ,2 2 2
1 ,0 8 1
20 7
127
9
234
857
70
186
587
47
106
374
50
r229 r4 ,3 9 0
2 0 2 5 ,8 5 1
27 8 3 ,7 6 9
255 3 ,1 8 5
249 5 ,3 3 0
2 70 2 ,9 6 2
2 8 0 2 ,6 9 7
259 4 ,1 0 7
265 2 ,5 4 5
1 ,2 2 6
1 ,3 1 9
1 ,3 6 7
1 43 9
1 ,3 0 9
1 ,2 7 2
1 ,2 3 7
1 ,5 4 9
1 ,3 4 6
20 7
192
207
218
223
218
231
207
220
599
348
328
293
224
234
2 62
239
285
r313
304
207
356
382
313
288
327
339
4 ,2 8 0
6 54
1 ,3 9 2
7 ,9 5 1
1 ,0 8 5
683
3 ,8 8 7
4 ,3 6 0
558
310
363
345
2 ,1 7 8
4 ,8 3 5
3 ,4 7 2
3 ,2 9 4
113
141
152
1 ,0 8 5
165
721
77
301
1 ,1 9 5
1 ,5 0 5
1 ,4 4 3
1 ,3 5 1
199
175
226
221
269
28 0
3 29
589
2 86
361
328
248
5 0 ,5 2 1
5 7 ,3 0 1
7 0 ,1 8 2
7 7 ,4 1 6
M o n th :
1970— A p r .................................. r2 2 ,0 0 5 r5 ,7 4 0
M a y ................................
1 3 ,9 8 6 7 ,0 5 8
J u n e ................................ 2 2 ,5 6 1 6 ,0 1 4
J u ly ................................. 1 2 ,6 0 9 6 ,0 4 0
A u g ................................. 1 5 ,1 7 2 6 ,9 8 5
S e p t................................. 1 8 ,7 2 5 5 ,9 0 7
O ct................................... 1 1 ,4 9 3 5 ,6 6 7
N o v ................................. 1 4 ,1 3 4 7 ,0 0 7
D e c .................................. 1 5 ,4 2 9 5 ,8 3 8
1971— J a n ...................................
F e b ..................................
M a r.................................
A p r ..................................
N on
w ith
h eld
6 ,3 3 9
7 ,2 4 6
6 ,6 0 5
5 ,9 3 9
4 0 1 0 ,5 7 9
1 ,4 0 7 6 ,4 9 3
4 ,6 3 1 3 ,3 6 6
4 ,2 6 1 9 ,6 3 0
123
264
248
28 8
2 90
2 ,7 2 0
5 ,9 4 4
3 ,9 9 0
4 ,9 7 0
B u d g et o u tla y s 4
P eriod
T o ta l
Fiscal
196
196
196
197
year:
7
8
9
0
N a
tio n a l
de
fe n se
In tl.
affairs
Sp ace
re
search
A g ri
c u l
ture
N a t
ural
re
so u r c es
C om E d u ca
C om
H ea lth
m un.
tio n
m erce
an d
and
d evelop .
and
an d
m a n w elfare
tran sp .
h o u sin g p o w er
V e t
eran s
In ter
est
G en
eral
g o v t.
Intrag o v t.
tran s
ac
t io n s 5
1 5 8 ,2 5 4
1 7 8 ,8 3 3
1 8 4 ,5 4 8
1 9 6 ,5 8 8
7 0 ,0 8 1
8 0 ,5 1 7
8 1 ,2 3 2
8 0 ,2 9 5
4 ,5 4 7
4 ,6 1 9
3 ,7 8 5
3 ,5 7 0
5 ,4 2 3
4 ,7 2 1
4 ,2 4 7
3 ,7 4 9
4 ,3 7 6
5 ,9 4 3
6,221
6,201
1 ,8 2 1
1 ,6 5 5
2 ,0 8 1
2 ,4 8 0
7 ,5 9 4
8 ,0 9 4
7 ,9 2 1
9 ,3 1 0
2 ,6 1 6
4 ,0 7 6
1 ,9 6 1
2 ,9 6 5
5 ,8 5 3
6 ,7 3 9
6 ,5 2 5
7 ,2 8 9
3 7 ,8 8 5
4 3 ,7 8 0
4 9 ,3 9 5
5 6 ,7 8 5
6 ,8 9 7
6 ,8 8 2
7 ,6 4 0
8 ,6 7 7
1 2 ,5 8 8
1 3 ,7 4 4
1 5 ,7 9 1
1 8 ,3 1 2
2,866
3 ,3 3 6
- 3 ,9 3 6
- 4 ,4 9 9
- 5 ,1 1 7
- 6 ,3 8 0
197
1
1972*6...............
2 1 2 ,7 5 5
2 2 9 ,2 3 2
7 6 ,4 4 3
7 7 ,5 1 2
3 ,5 8 6
4 ,0 3 2
3 ,3 6 8
3 ,1 5 1
5 ,2 6 2
5 ,8 0 4
2 ,6 3 6
4 ,2 4 3
1 1 ,4 4 2
1 0 ,9 3 7
3 ,8 5 8
4 ,4 9 5
8 ,3 0 0
7 0 ,4 7 4
7 6 ,7 4 9
9 ,9 6 9
1 0 ,6 4 4
1 9 ,4 3 3
1 9 ,6 8 7
4 ,3 8 1
4 ,9 7 0
- 7 ,1 9 7
- 7 ,7 7 1
Half Year:
1969—Jan.-June
July-Dee.
1970—Jan.-June
July-Dee.
9 1 ,3 6 2
9 8 ,9 2 7
9 7 ,6 6 1
1 0 4 ,1 8 3
4 1 ,4 0 8
4 0 ,6 1 6
3 9 ,6 8 3
3 8 ,4 8 5
1 ,8 7 8
1,9 4 1
1 ,6 2 7
1 ,4 0 9
2 ,1 1 4
1 ,8 3 9
1 ,9 1 0
1 ,7 2 0
1 ,2 9 3
5 ,4 7 6
711
4 ,6 3 3
860
1 ,5 1 5
1 ,0 1 7
1 ,5 7 5
3 ,3 7 2
4 ,6 1 1
4 ,6 5 1
5 ,7 9 4
928
1 ,8 2 0
1 ,2 9 1
1 ,6 7 7
3 ,7 6 4
3 ,1 2 0
4 ,3 1 4
3 ,7 4 4
2 5 ,2 0 2
2 6 ,0 6 3
3 0 ,4 3 2
3 2 ,7 1 0
3 ,9 7 5
4 ,1 4 8
4 ,5 3 7
4 ,6 2 5
8 ,1 8 3
8 ,6 2 3
9 ,6 8 7
9 ,5 9 4
1 ,5 4 2
1 ,5 2 0
1 ,8 1 7
1 ,8 2 3
- 3 ,1 5 8
- 2 ,3 6 5
- 4 ,0 1 5
- 3 ,6 0 6
M onth:
1970—Ap r
May........
June........
July........
Aug........
Sept........
Oct.........
Nov........ .
Dec........
r1 8 ,0 3 9
1 6 ,4 4 5
1 5 ,3 5 1
1 9 ,3 2 7
1 7 ,4 9 5
1 7 ,4 4 3
1 7 ,6 4 0
1 6 ,7 2 8
1 5 ,5 5 0
'6 ,8 0 4
6 ,5 1 6
6 ,9 2 6
6 ,7 9 4
6 ,2 5 3
6 ,3 7 4
6 ,3 5 4
5 ,9 6 5
6 ,7 4 5
336
2 96
225
199
285
107
144
is o
211
r973
715
311
234
160
332
285
378
268
28 2
28 2
302
2 66
318
2 ,4 3 0
720
44
927
422
90
218
208
371
337
316
283
59
28 0
98
291
471
2 59
268
234
132
314
6 42
694
1 ,1 4 7
553
680
651
593
534
733
5 ,9 9 6
5 ,2 0 7
5 ,0 0 1
5 ,2 7 6
5 ,2 8 9
5 ,4 3 4
5 ,5 4 5
5 ,4 8 8
5 ,6 7 8
75 0
80 6
731
73 2
76 6
72 2
767
829
808
r l ,6 3 3
1 ,5 6 3
1 ,6 5 5
1 ,5 9 7
1 ,7 0 5
1 ,7 3 1
1 ,1 4 8
1 ,7 3 8
1 ,6 7 6
275
312
368
190
34 6
396
33 4
264
294
-2 7 8
-4 0 1
- 2 ,5 0 3
-2 3 4
-3 4 7
-2 5 0
-2 9 6
-3 2 4
- 2 ,1 5 7
1971—Ja............ n
Feb.........
Mar........
Apr.........
1 7 ,1 1 5
1 6 ,5 4 6
1 8 ,6 4 6
1 7 ,8 1 8
6 ,1 5 3
5 ,8 5 1
6 ,6 7 4
6 ,3 3 7
184
236
39 2
328
26 2
295
333
252
373
21 7
206
28 6
6 76
912
683
5 ,8 9 9
5 ,9 2 9
6 ,1 3 9
6 ,0 9 3
768
79 7
964
883
1 ,6 3 1
1 ,6 9 5
1 ,7 0 9
1 ,6 8 3
36 7
294
399
323
-2 4 7
-3 5 7
-2 6 0
-2 9 4
221
-8 8
632
-8 9
-5 2
-2 1
1 O ld -a g e , d isa b ility , an d h o sp ita l in su ra n ce, and R a ilro a d R etirem en t
ac c o u n ts.
2 S u p p lem en ta ry m ed ic a l in su ra n ce p rem iu m s and F ed era l e m p lo y e e
retirem en t c o n trib u tio n s.
3 D e p o s its o f earn in gs b y F ed era l R eserv e B an ks and oth er m isc e lla n e
o u s receip ts.
4 O u tlays b y fu n c tio n a l ca te g o r ies are p u b lish ed in th e M o n th ly
T reasu ry S ta te m e n t (b e g in n in g A p ril 1969). M o n th ly b a ck d ata (b eg in n in g
July 1968) are p u b lish ed in th e T rea su ry B u lletin o f June 1969.
-409
234
230
250
1,002
843
885
1 ,2 3 1
1 ,1 0 5
898
832
826
759
1,000
1 ,0 1 5
686
2 ,5 1 0
2 ,5 6 1
5 C o n sists o f g o v e r n m e n t co n trib u tio n s fo r e m p lo y e e retirem ent an d
interest received b y tru st fu n d s.
6 E stim a tes p resen ted in th e Jan. 1971 B u d g et D o cu m en t. B rea k d o w n s d o
n o t a d d to to ta ls b e c a u se sp e c ia l a llo w a n c es fo r c o n tin g e n c ie s, F ed era l p a y
increase, and a llo w a n c e fo r rev en u e sharin g, to ta lin g $ 8 0 0 m illio n fo r
fiscal 1971 and $ 5 ,9 6 9 m illio n fo r fiscal 1972, are n o t in c lu d e d .
N ote.—Half years may not add to fiscal year totals due to revisions in
series which are not yet available on a monthly basis.
A 42
U.S. GOVERNMENT SECURITIES □ J U N E 1971
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions o f dollars)
Public issues
Total
gross
public
debt i
End of period
Marketable
Total
Total
Bills
Con
vert
ible
Bonds; 2 bonds
Certifi
cates
Notes
30.0
6.0
10.1
33.6
119.5
1941—Dec.
1946—Dec.
57.9
259.1
50.5
233.1
41.6
176.6
2.0
17.0
1962—Dec.
1963—Dec.
1964—Dec.
1965—Dec.
303.5
309.3
317.9
320.9
255.8
261.6
267.5
270.3
203.0
207.6
212.5
214.6
48.3
51.5
56.5
60.2
22.7
10.9
53.7
58.7
59.0
50.2
78.4
86.4
97.0
104.2
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
329.3
344.7
358.0
368.2
273.0
284.0
296.0
295.2
218.0
226.5
236.8
235.9
64.7
69.9
75.0
80.6
5.9
48.3
61.4
76.5
85.4
1970—May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
371.1
370.9
376.6
380.9
378.7
380.2
383.6
389.2
295.8
292.7
298.5
301.4
300.1
302.9
306.0
309.1
236.6
232.6
237.8
240.5
239.3
242.2
244.4
247.7
80.1
76.2
81.4
81.9
80.7
83.7
84.6
87.9
1971—Jan..
Feb..
Mar.
Apr..
May,
388.3
390.7
391.7
391.9
396.8
308.8
309.8
309.7
310.4
313.2
247.7
248.1
247.5
245.9
245.6
87.9
89.3
89.0
87.5
89.1
1 Includes non-interest-bearing debt (of which $627 million on May 31,
1971, was not subject to statutory debt limitation).
2 Includes Treasury bonds and minor amounts of Panama Canal and
postal saving bonds.
3 Includes (not shown separately): depositary bonds, retirement plan
bonds, foreign currency series, foreign series, and Rural Electrification
Administration bonds; before 1954, Armed Forces leave bonds; before
Nonmarketable
Special
issues 4
Sav
ings
bonds
& notes
8.9
56.5
6.1
49.8
7.0
24.6
4.0
3.2
3.0
2.8
48.8
50.7
52.0
52.9
47.5
48.8
49.7
50.3
43.4
43.7
46.1
46.3
99.2
95.2
85.3
69.9
2.7
2.6
2.5
2.4
52.3
54.9
56.7
56.9
50.8
51.7
52.3
52.2
52.0
57.2
59.1
71.0
93.5
93.5
93.5
99.9
99.9
99.8
101.2
101.2
63.0
63.0
62.9
58.7
58.7
58.7
58.6
58.6
2.4
2.4
2.4
2.4
2.4
2.4
2.4
2.4
56.9
57.7
58.3
58.5
58.4
58.3
59.2
59.1
52.0
52.0
52.0
52.1
52.1
52.2
52.4
52.5
73.3
76.3
76.1
77.5
76.7
75.4
75.6
78.1
101.2
104.3
104.3
104.3
102.5
58.5
54. :5
54.2
54.1
54.0
2.4
2.4
2.4
2.4
2.3
58.7
59.3
59.9
62.1
65.2
52.6
52.8
53.0
53.2
53.4
77.7
78.9
80.0
79.7
81.7
1956, tax and savings notes; and before Oct. 1965, Series A investment
bonds.
4 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.
OWNERSHIP OF PUBLIC 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
1939—Dec...............
1946—Dec................
41.9
259.1
6.1
27.4
2.5
23.4
1962—Dec...............
1963—Dec...............
1964—Dec...............
1965—Dec................
303.5
309.3
317.9
320.9
53.2
55.3
58.4
59.7
1966—Dec................
1967—Dec...............
1968—Dec................
1969—Dec................
329.3
344.7
358.0
368.2
1970—Apr................
M ay..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec................
1971—Jan.................
Feb................
Mar...............
Apr................
End of
period
Foreign Other
misc.
and
inter
inves
national 1 tors 2
Mutual
savings
banks
Insur
ance
com
panies
Other
corpo
rations
State
and
local
govts.
33.4
208.3
12.7
74.5
2.7
11.8
5.7
24.9
2.0
15.3
.4
6.3
1.9
44.2
7.5
20.0
.2
2.1
.3
9.3
30.8
33.6
37.0
40.8
219.5
220.5
222.5
220.5
67.1
64.2
63.9
60.7
6.0
5.6
5.5
5.3
11.5
11.2
11.0
10.3
18.6
18.7
18.2
15.8
20.1
21.1
21.1
22.9
47.0
48.2
49.1
49.7
19.1
20.0
20.7
22.4
15.3
15.9
16.7
16.7
14.8
15.6
16.3
16.7
65.9
73.1
76.6
89.0
44.3
49.1
52.9
57.2
219.2
222.4
228.5
222.0
57.4
63.8
66.0
56.8
4.6
4.1
3.6
2.9
9.5
8.6
8.0
7.1
14.9
12.2
14.2
13.3
24.3
24.1
24.4
25.4
50.3
51.2
51.9
51.8
24.3
22.8
23.9
29.1
14.5
15.8
14.3
11.4
19.4
19.9
22.4
24.1
367.2
371.1
370.9
376.6
380.9
378.7
380.2
383.6
389.2
90.2
92.3
95.2
94.8
96.4
95.5
94.4
94.6
97.1
56.5
57.3
57.7
58.6
59.9
60.0
60.0
61.2
62.1
220.5
221.4
218.0
223.2
224.6
223.2
225.8
227.9
229.9
54.5
53.9
53.3
55.1
58.0
56.9
58.9
59.8
63.2
2.8
2.9
2.9
2.8
2.9
2.9
2.8
2.7
2.8
7.1
6.9
6.8
7.1
7.2
7.1
7.0
6.9
7.0
11.9
12.5
11.1
12.0
11.7
10.3
11.1
10.8
10.6
24.7
25.2
24.6
24.2
24.2
24.0
24.2
23.2
22.9
51.6
51.6
51.6
51.6
51.7
51.7
51.9
51.9
52.1
31.1
31.4
30.9
31.2
30.6
31.0
30.5
30.4
29.8
13.2
13.8
14.8
15.9
16.5
17.4
18.2
20.0
20.6
23.6
23.3
22.0
23.4
21.8
22.1
21.4
22.1
21.1
388.3
390.7
391.7
391.9
96.7
98.0
98.8
99.1
61.8
62.5
64.2
63.7
229.9
230.2
228.7
229.1
62.1
62.1
61.2
60.2
2.7
2.8
2.8
2.8
7.3
7.2
6.8
6.8
11.1
10.2
11.0
10.0
23.0
23.8
22.6
22.0
52.1
52.3
52.5
52.8
29.5
28.8
27.5
26.5
20.9
22.9
25.4
29.2
21.1
20.1
18.9
19.0
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.
J U N E 1971 □ U.S. GOVERN M ENT SECURITIES
A 43
OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
Within 1 year
Type of holder and date
All holders:
1968—Dec.
1969—Dec.
1970—Dec.
1971—Mar.
Apr.
Total
Total
Bills
Other
1-5
years
5-10
years
10-20
years
Over
20 years
31........................................................
31........................................................
31........................................................
31........................................................
30........................................................
236,812
235,863
247,713
247,457
245,888
108,611
118,124
123,423
114,940
113,466
75,012
80,571
87,923
88,977
87,504
33,599
37,553
35,500
25,963
25,962
68,260
73,301
82,318
86,024
85,990
35,130
20,026
22,554
27,199
27,199
8,396
8,358
8,556
8,513
8,491
16,415
16,054
10,863
10,780
10,742
U.S. Govt, agencies and trust funds:
1968—Dec. 31................................................
1969—Dec. 31................................................
1970—Dec. 31................................................
1971—Mar. 31................................................
Apr. 30................................................
15,402
16,295
17,092
17,379
17,409
2,438
2,321
3,005
2,654
2,603
1,034
812
708
847
862
1,404
1,509
2,297
1,807
1,741
4,503
6,006
6,075
6,217
6,248
2,964
2,472
3,877
4,289
4,339
2,060
2,059
1,748
1,774
1,775
3,438
3,437
2,387
2,445
2,445
Federal Reserve Banks:
1968—Dec. 31................................................
1969—Dec. 31................................................
1970—Dec. 31................................................
1971—Mar. 31................................................
Apr. 30................................................
52,937
57,154
62,142
64,160
63,721
28,503
36,023
36,338
33,416
32,964
18,756
22,265
25,965
26,709
26,321
9,747
13,758
10,373
6,707
6,643
12,880
12,810
19,089
23,699
23,735
10,943
7,642
6,046
6,178
6,141
203
224
229
312
316
408
453
440
555
564
Held by private investors:
1968—Dec. 31................................................
1969—Dec. 31................................................
1970—Dec. 31................................................
1971—Mar. 31................................................
Apr. 30................................................
168,473
162,414
168,479
165,918
164,758
77,670
79,780
84,080
78,870
77,899
55,222
57,494
61,250
61,421
60,321
22,448
22,286
22,830
17,449
17,578
50,877
54,485
57,154
56,108
56,007
21,223
9,912
12,631
16,732
16,719
6,133
6,075
6,579
6,427
6,400
12,569
12,164
8,036
7,780
7,733
Commercial banks:
1968—Dec. 31........................................
1969—Dec. 31........................................
1970—Dec. 31........................................
1971—Mar. 31........................................
Apr. 30........................................
53,174
45,173
50,917
49,836
48,713
18,894
15,104
19,208
15,966
14,697
9,040
6,727
10,314
9,239
8,146
9,854
8,377
8,894
6,727
6,551
23,157
24,692
26,609
26,684
26,914
10,035
4,399
4,474
6,553
6,495
611
564
367
354
355
477
414
260
279
252
Mutual savings banks:
1968—Dec. 31........................................
1969—Dec. 31........................................
1970—Dec. 31.........................................
1971—Mar. 31........................................
Apr. 30........................................
3,524
2,931
2,745
2,813
2,815
696
501
525
442
438
334
149
171
201
197
362
352
354
241
241
1,117
1,251
1,168
1,149
1,131
709
263
339
519
534
229
203
329
322
332
773
715
385
381
380
Insurance companies:
1968—Dec. 31........................................
1969—Dec. 31........................................
1970—Dec. 31........................................
1971—Mar. 31........................................
Apr. 30........................................
6,857
6,152
6,066
5,883
5,848
903
868
893
784
699
498
419
456
438
375
405
449
437
346
324
1,892
1,808
1,723
1,568
1,577
721
253
849
944
999
1,120
1,197
1,369
1,395
1,395
2,221
2,028
1,231
1,193
1,178
Nonfinancial corporations:
1968—Dec. 31........................................
1969—Dec. 31........................................
1970—Dec. 31........................................
1971—Mar. 31........................................
Apr. 30........................................
5,915
5,007
3,057
3,684
3,041
4,146
3,157
1,547
2,249
1,653
2,848
2,082
1,194
2,050
1,486
1,298
1,075
353
199
167
1,163
1,766
1,260
1,208
1,157
568
63
242
219
181
12
12
2
2
5
27
8
6
6
44
Savings and loan
1968—Dec.
1969—Dec.
1970—Dec.
1971—Mar.
Apr.
associations:
31........................................
31........................................
31.........................................
31........................................
30........................................
4,724
3,851
3,263
3,400
3,321
1,184
808
583
717
679
680
269
220
449
450
504
539
363
268
229
1,675
1,916
1,899
1,750
1,692
1,069
357
281
487
519
346
329
243
216
205
450
441
258
232
226
State and local governments:
1968—Dec. 31........................................
1969—Dec. 31........................................
1970—Dec. 31.........................................
1971—Mar. 31........................................
Apr. 30........................................
13,426
13,909
11,204
11,649
11,353
5,323
6,416
5,184
5,629
5,635
4,231
5,200
3,803
4,562
4,621
1,092
1,216
1,381
1,067
1,014
2,347
2,853
2,458
2,427
2,280
805
524
774
958
910
1,404
1,225
1,191
1,138
1,067
3,546
2,893
1,598
1,497
1,461
All others:
1968—Dec.
1969—Dec.
1970—Dec.
1971—Mar.
Apr.
80,853
85,391
91,227
88,653
89,667
46,524
52,926
56,140
53,083
54,098
37,591
42,648
45,092
44,482
45,046
8,933
10,278
11,048
8,601
9,052
19,526
20,199
22,037
21,322
21,256
7,316
4,053
5,672
7,052
7,081
2,411
2,545
3,078
3,000
3,041
5,075
5,665
4,298
4,192
4,192
31........................................
31........................................
31........................................
31........................................
30........................................
N o te . —Direct public issues only. Based on Treasury Survey of
Ownership.
Beginning with Dec. 1968, certain Govt.-sponsored but privately-owned
agencies and certain Govt, deposit accounts have been removed from U.S.
Govt, agencies and trust funds and added to “Allothers.” Comparable data
are not available for earlier periods.
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks
but for other groups are based on Treasury Survey data. Of total mar-
ketable issues held by groups, the proportion held on latest date by those
reporting in the Survey and the number of owners surveyed were: (1)
about 90 per cent by the 5,695 commercial banks, 491 mutual savings
banks, and 743 insurance companies combined; (2) about 50 per cent by
the 468 nonfinancial corporations and 487 savings and loan assns.; and
(3) about 70 per cent by 503 State and local govts.
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A 44
U.S. GOVERNMENT SECURITIES □ J U N E 1971
DEALER TRANSACTIONS
(Par value, in millions of dollars)
U.S. Government securities
By type of customer
By maturity
Period
Total
Dealers and brokers
Within
1 year
1-5
years
5-10
years
Over
10 years
U.S. Govt,
securities
Other
Com
mercial
banks
U.S. Govt,
agency
securities
All
other
1970—Apr..............................
May.............................
June.............................
July.............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec..............................
2,046
2,164
2,146
2,395
2,121
2,500
2,768
3,418
2,590
1,801
1,685
1,867
2,073
1,578
2,041
2,266
2,430
2,043
160
337
190
200
372
293
284
601
343
59
106
59
96
146
137
190
338
153
27
36
29
27
25
28
28
50
52
887
868
728
832
722
878
1,018
1,330
949
70
73
68
77
74
90
109
172
123
665
717
820
914
820
931
1,094
1,278
1,025
424
506
529
573
505
602
547
638
493
387
378
414
447
398
403
569
712
428
1971—Jan...............................
Feb...............................
Mar..............................
Apr..............................
3,482
3,316
3,072
2,458
2,629
2,291
2,122
1,881
564
579
506
328
248
397
388
216
40
49
57
33
1,346
1,178
1,036
828
130
145
143
116
1,364
1,232
1,204
878
642
760
688
636
671
679
567
516
7.......................
14.......................
21.......................
28.......................
2,633
2,736
2,134
2,062
1,960
1,972
1,681
1,691
354
449
303
171
290
268
125
169
29
48
25
33
848
931
755
638
143
161
89
69
966
967
827
723
676
677
463
631
502
612
297
654
May 5 .......................
12.......................
19.......................
26.......................
3,111
2,019
2,232
2,378
2,211
1,464
1,539
1,866
671
346
386
307
192
178
282
179
37
31
27
26
1,104
755
778
913
127
97
109
88
952
624
703
811
929
542
643
566
448
368
474
597
Week ending—
1971—Apr.
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 New York.
They do not include allotments of, and exchanges for, new U.S. Govt.
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the number of
trading days in the period,
DEALER POSITIONS
DEALER FINANCING
(Par value, in millions of dollars)
(In millions of dollars)
U.S. Government securities, by maturity
Period
All
Within
1
maturi
ties
year
1-5
years
5-10
years
Over
10
years
U.S.
Govt.
agency
securi
ties
Commercial banks
Period
All
sources
Corpora
tions i
All
other
New
York
City
Else
where
1,293
637
422
855
1 ,526
1,164
1,370
1,517
1,868
1,373
830
626
770
1,168
1,456
1,232
1,527
1,960
546
466
421
518
834
449
392
416
379
1,710
964
842
1,071
1,373
1,152
1,240
1,689
1,742
1970—Apr................
May...............
June...............
July...............
Aug................
Sept................
Oct.................
Nov................
Dec................
4,507
2,668
2,199
3,267
4,474
4,020
3,963
4,760
5,571
4,228
1,886
1,859
3,102
3,389
3,326
3,449
3,399
4,399
107
461
111
-1 8
454
246
103
617
612
164
306
227
171
604
433
379
682
485
8
16
2
13
27
16
33
62
76
705
654
615
828
819
724
1,001
1,066
1,049
1970—Apr............
M ay..........
June..........
July...........
Aug...........
Sept...........
Nov...........
Dec............
4,922
2,898
2,310
3,214
4,900
4,220
4,233
5,149
5,949
1971—Jan..................
Feb.................
Mar................
A p r................
5,634
4,655
4,421
4,870
4,626
3,320
3,511
4,019
525
569
437
415
403
691
404
416
80
75
70
20
966
946
981
1,118
1971—Jan.............
Feb.............
Mar...........
A pr............
6,198
5,684
4,543
5,700
1,888
1,673
1,356
1,759
1,695
1,318
926
1,415
527
369
399
724
2,088
2,324
1,862
1,802
4,532
4,487
4,201
3,617
5,300
3,714
3,626
3,307
2,613
4,357
336
361
389
539
515
431
443
430
375
362
51
58
75
89
65
927
820
913
1,076
1,161
1971—Mar. 3 . . . .
1 0 ....
1 7 ....
2 4 ....
3 1 ....
4,721
4,839
4,599
4,111
4,547
1,567
1,599
1,143
1,297
1,293
1,210
1,287
784
728
803
240
458
371
415
414
1,704
1,494
2,300
1,670
2,038
Apr. 7 .......... 6,478
14.......... 5,123
21......... 4,567
28......... 3,878
5,465
4,310
3,757
3,060
536
417
394
382
432
385
404
424
44
13
13
12
1,247
1,141
1,050
1,108
Apr. 7 . . . .
1 4 ....
2 1 ....
2 8 ....
6,473
6,706
5,583
4,347
1,899
2,083
1,881
1,178
1,749
2,074
1,163
831
603
703
808
810
2,222
1,847
1,731
1,529
Week ending—
Week ending—
1971—Mar. 3 ..........
10..........
17..........
24..........
31..........
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.
1 All business corporations, except commercial 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.
J U N E 1971 □ GOVERNM ENT SECURITIES
A 45
U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MAY 31, 1971
(In millions of dollars)
Issue and coupon rate
Issue and coupon rate
Treasury bills—Cont.
,701
Oct. 3 1 , 1 9 7 1 . . . .
Nov. 4, 1 9 7 1 . . . .
,300
301
Nov. 1 1 , 1 9 7 1 . . . .
,301
Nov. 1 8 , 1 9 7 1 . . . .
,515
Nov. 2 6 , 1971. . . .
Nov. 3 0 , 1971
,303
,702
Dec. 3 1 , 1 9 7 1 . . . .
Jan. 31, 1 9 7 2 . . . .
,302
402
Feb. 2 9 , 1 9 7 2 . . . .
Mar. 3 1 , 1972. . . .
408
Apr. 3 0 , 197 2 . . . .
402
401
703
406
400
,404 Treasury notes
Aug. 15, 1971, ,. . . 8 ^
503
Oct. 1 , 1971. • • • 1Vi
704
Nov. 15, 1971, ...53/8
401
Nov. 15, 1971., ,. ..7 %
401
Feb. 15, 1972..,...4 3 *
401
Feb. 15, 1972.., ■••7 %
602
Apr. 1, 1972 , ••1%
303
May 15, 1972 ,. ..4 3 ^
601
May 15, 1972 , ..6 3 4
600
401
Aug. 15, 1972... ....... 5
Oct. 1, 1972 . -.1 %
401
Treasury bills
May 31, 1971...............
June 3, 1971...............
June 10, 1971...............
June 17, 1971...............
June 22, 1971f ..............
June 24, 1971................
June 30, 1971...............
July 1, 1971...............
July 8, 1971................
July 15, 1971................
July 22, 1971................
July 29, 1971................
July 31, 1971...............
Aug. 5, 1971................
Aug. 12, 1971................
Aug. 19, 1971................
Aug. 26, 1971................
Aug. 31, 1971...............
Sept. 2, 1971................
Sept. 9, 1971................
Sept. 16, 1971................
Sept. 23, 1971................
Sept. 30, 1971...............
Oct. 7, 1971................
Oct. 14, 1971................
Oct. 21, 1971................
Oct. 28, 1971................
t
Amount
1.701
1.400
1.400
1,402
1.400
1.702
1.702
1,700
1,201
1,200
1,200
2,257
72
963
5,836
797
2,684
34
5,310
2,037
3,432
33
Tax-anticipation series.
Issue and coupon rate
Amount
Issue and coupon rate
Amount
’reasury notes—Cont.
Apr. 1, 1973 ,. •1%
May 15, 1973.... .734
Aug. 15, 1973 . •8 Vs
Oct. 1, 1973
■Wi
Feb. 15, 1974 , .734
Apr. 1, 1974,,.. . 11/2
May 15, 1974 ,,, . 71/4
Aug. 15, 1974 ,., . 55/8
Oct. 1, 1974.,., .1 Vi
Nov. 15, 1974
.534
Feb. 15, 1 9 7 5 ,,., . 53/4
Apr. 1, 1975___ . 1 %
May 15, 1975
.6
Aug. 15, 1975., , -5J4
Oct. 1, 1975
.1%
Feb. 15, 1976,,.. ■6V4
Apr. 1, 1976,
• 1Vi
May 15, 1976 , . 61/2
Aug. 15, 1976.
. 71/2
Feb. 15, 1 9 77.... .8
Aug. 15, 1 9 77.,., .734
Feb. 15, 1978.,, .61/4
34
5,843
1,839
30
3,141
34
4,507
10,284
42
7,211
5,148
8
6,760
7,683
31
3,739
2
2,697
4,194
5,163
2,263
8,387
Treasury bonds—Cont
Sept. 15, 1967-72. .2%
Dec. 15, 1967-72. . 21/2
Aug. 15, 1971
4
Nov. 15, 1971.... .37/s
Feb. 15, 1972 .,, ,4
Aug. 15, 1972 ,. 4
Aug. 15, 1973 ,. ,4
Nov. 15, 1973 , •41/s
Feb. 15, 1974
•41/s
May 15, 1974.... .414
Nov. 15, 1 9 74.... •37/s
May 15, 1975-85. .414
June 15, 1978-83. .314
Feb. 15, 1980,,.. .4
Nov. 15, 1980.... .31/2
May 15, 19 8 5 .... .314
Aug. 15, 1987-92. .414
Feb. 15, 1988-93. .4
May 15, 1989-94. •41/s
Feb. 15, 1990 , .3Vi
Feb. 15, 1 9 95.... .3
Nov. 15, 1998,,, .3Vi
1,951
2,562
2,806
1,087
979
2,579
3,894
4,344
3,126
3,579
2,238
1,212
1,536
2,591
1,904
1,057
3,805
247
1,551
4,668
1,201
3,894
'reasury bonds
June 15, 1967-72. . 21/2
1,232
Convertible bonds
Investment Series B
Apr. 1, 1975-80. •234
2,348
N o t e .—Direct public issues only. Based on Daily Statement
Treasury.
of
U.S.
NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions of dollars)
Issues for new capital
All issues (new capital and refunding)
Total
196
196
196
196
196
196
196
197
3
4
5
6
7
8
9
0
1970—Apr..,
M ay.,
June.,
July. .
Aug. .
Sept..
Oct.. .
N o v ..
D ec..,
1971—Jan".
Feb r .
M ar..
Apr. .
Type of issuer
Type of issue
Period
Gener
al
obli
gations
10,538 5,855
10,847 6,417
11,329 7,177
11,405 6,804
14,766 8,985
16,596 9.269
11,881 7,725
18,164 11,850
1,647
996
1,085
1,348
1,359
1,758
1,924
1,748
2,190
2,702
1,833
2,107
i ,r —
1,217
674
651
1,055
873
1,207
1,184
892
1.270
1,611
1,225
1,299
1,338
Reve
nue
4,180
3,585
3.517
3,955
5,013
6.517
3,556
6,082
416
315
423
288
481
541
695
753
914
968
600
806
545
HAAl
254
637
464
325
477
528
402
131
121
U.S.
Govt.
loans
State
Special
district
and
Other2
stat.
auth.
Use of proceeds
Total
249
208
170
312
334
282
197
103
1,620
1,628
2,401
2,590
2,842
2,774
3,359
4,174
3,636
3,812
3,784
4,110
4,810
5,946
3,596
5,595
5,281 10,496 9,151
5,407 10,069 10,201
5,144 11,538 10,471
4,695
11,303
7,115
14,643
7,884
16,489
4,926
11,838
8,399
18,110
15
7
12
4
5
9
13
5
6
2
7
1
5
303
254
165
388
331
534
290
247
571
577
585
417
440
345
311
379
229
518
536
531
765
826
1,135
610
628
492
1,001
433
543
730
509
688
1,102
736
793
990
638
1,062
958
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.
4 Water, sewer, and other utilities.
Total
amount
deliv
ered3
1,647
987
1,085
1,348
1,358
1,756
1,923
1,743
2,176
2,691
1,817
2,097
1,845
Edu Roads
and
cation bridges
Util
ities4
Other
Hous Veter
ans’ pur
ings
aid poses
3,029
3,392
3,619
3,738
4,473
4,820
3,252
5,062
812
688
900
1,476
1,254
1,526
1,432
1,532
2,344
2,437
1,965
1,880
2,404
2,833
1,734
3,525
598
727
626
533
645
787
543
466
2,396
120 2,838
50 3,311
3,667
5,867
6,523
4,884
7,526
473
298
528
268
404
491
532
523
425
508
518
549
501
167
30
61
130
136
137
123
63
327
390
133
181
66
292
367
147
142
196
243
380
364
623
428
315
623
462
12
11
8
4
4
21
68
12
121
373
123
28
19
703
281
342
803
617
864
821
683
681
992
727
716
797
5 Includes urban redevelopment loans.
N o t e .— The
figures in the first column differ from those shown on the
following page, which are based on Bond Buyer data. The principal
difference is in the treatment of U.S. Govt, loans.
Investment Bankers Assn. data; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.
A 46
SECU R ITY ISSUES □ J U N E 1971
TOTAL NEW ISSUES
(In millions o f dollars)
Gross proceeds, all issues1
Noncorporate
Corporate
Period
Total
U.S.
Govt.2
U.S.
Govt.
agency3
State
and local
(U.S.)4
Bonds
Other5
Total
Stock
Total
Publicly
offered
Privately
placed
Preferred
Common
1963....................
1964....................
1965....................
1966....................
35,199
37,122
40,108
45,015
10,827
10,656
9,348
8,231
1,168
1,205
2,731
6,806
10,107
10,544
11,148
11,089
887
760
889
815
12,211
13,957
15,992
18,074
10,856
10,865
13,720
15,561
4,713
3,623
5,570
8,018
6,143
7,243
8,150
7,542
343
412
725
574
1,011
2,679
1,547
1,939
1967....................
1968....................
1969....................
1970.....................
68,514
65,562
52,496
88,664
19,431
18,025
4,765
14,831
8,180
7,666
8,617
16,180
14,288
16,374
11,460
17,762
1,817
1,531
961
949
24,798
21,966
26,744
38,944
21,954
17,383
18,347
30,264
14,990
10,732
12,734
25,384
6,964
6,651
5,613
4,880
885
637
682
1,388
1,959
3,946
7,714
7,292
1970—M a r .......
Apr..........
May.........
June.........
July..........
Aug..........
Sept.........
Oct...........
Nov..........
Dec..........
6,799
5,891
9,548
6,985
5,896
8,155
8,199
8,353
9,040
7,651
461
387
3,701
819
405
3,573
1,428
412
2,414
401
1,201
700
950
1 ,693
1,107
915
1,600
2,169
750
924
1,504
1,625
974
1,058
1,310
1,318
1,650
1,882
1,684
2,245
94
9
14
27
306
76
4
113
10
100
3,539
3,170
3,909
3,389
2,768
2,273
3,518
3,777
4,182
3,980
2,385
2,469
3,441
2,368
2,151
1,935
2,814
2,694
3,283
3,270
1,914
2,022
3,041
1,931
1,831
1,731
2,425
2,390
3,001
2,436
471
448
399
436
320
205
389
303
283
834
90
67
69
222
88
92
176
180
124
168
1,064
634
399
436
529
246
528
903
774
541
1971—Jan.r
Feb . r .......
Mar..........
7,438
6,522
11,069
436
431
517
1,050
1,224
1,300
2,614
1,823
2,104
223
44
1,073
3,115
3,000
6,075
2,627
2,476
4,782
2,033
2,201
4,135
594
275
647
76
100
311
413
424
982
Gross proceeds, major groups of corporate issuers
Period
Manufacturing
Commercial and
miscellaneous
Transportation
Public utility
Communication
Real estate
and financial
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
1963..............................................
1964..............................................
1965..............................................
1966..............................................
3,202
2,819
4,712
5,861
313
228
704
1,208
676
902
1,153
1,166
150
220
251
257
948
944
953
1,856
9
38
60
116
2,259
2,139
2,332
3,117
418
620
604
549
953
669
808
1,814
152
1,520
139
189
2,818
3,391
3,762
1,747
313
466
514
193
1967..............................................
1968..............................................
1969..............................................
1970..............................................
9,894
5,668
4,448
9,191
1,164
1,311
1,904
1,322
1,950
1,759
1,888
1,949
117
116
3,022
2,545
1,859
1,665
1,899
2,188
466
1,579
247
92
4,217
4,407
5,409
8,016
718
873
1,326
3,001
1,786
1,724
1,963
5,059
193
43
225
83
2,247
2,159
2,739
3,861
186
662
1,671
1,636
1970—Mar....................................
Apr....................................
May...................................
June...................................
July....................................
Aug....................................
Sept....................................
Oct.....................................
Nov....................................
Dec....................................
882
616
801
896
602
663
937
929
927
932
533
73
17
42
36
20
56
76
180
124
110
283
113
124
232
91
118
288
147
207
200
276
338
396
162
96
228
286
129
147
262
154
63
117
215
125
145
138
170
307
293
170
65
430
219
99
337
448
505
230
286
56
1,747
353
143
278
443
338
693
277
20
6
7
58
613
939
535
673
624
531
904
653
845
725
5
231
421
182
204
335
248
266
348
502
822
108
176
49
151
191
122
81
238
78
146
1971_Jan r .................................
Feb.r .................................
Mar....................................
647
644
2,123
69
17
294
259
72
289
239
112
186
167
89
160
1
1
608
752
895
68
317
557
391
672
481
11
52
555
248
834
112
66
204
1 Gross proceeds are derived by multiplying principal amounts or
number of units by offering price.
2 Includes guaranteed issues.
3 Issues not guaranteed.
4 See n o t e to table at bottom of preceding page.
2
8
1
1
2
34
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organizations.
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.
J U N E 1971 o SECU RITY ISSUES
A 47
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions of dollars)
Derivation of change, all issuers1
Bonds and notes
All securities
Period
Common and preferred stocks
New issues
Retirements
Net change
New issues
Retirements
Net change
New issues
Retirements
Net change
19,799
25,964
25,439
28,841
38,707
7,541
7,735
12,377
10,813
9,079
12,258
18,229
13,062
18,027
29,628
15,629
21,299
19,381
19,523
29,495
4,542
5,340
5,418
5,767
6,667
11,088
15,960
13,962
13,755
22,825
4,169
4,664
6,057
9,318
9,213
3,000
2,397
6,959
5,045
2,411
1,169
2,267
-9 0 0
4,272
6,801
1969—IV ..............
7,473
2,109
5,364
4,710
1,609
3,101
2,763
500
2,263
1970—1..................
I I ................
I l l ..............
IV...............
7,272
10,114
9,385
11,936
2,185
2,227
2,089
2,577
5,086
7,886
7,297
9,359
4,987
7,876
7,598
9,034
1 ,507
1,545
1,546
2,069
3,480
6,330
6,051
6,964
2,285
2,238
1,788
2,902
679
682
542
508
1,606
1,556
1,245
2,394
1966.......................
1967.......................
1968.......................
1969.......................
1970.......................
Type of issuer
Bonds
& notes
4,324
7,237
4,418
3,747
6,641
1966.......................
1967.......................
1968.......................
1969.......................
1970.......................
Transpor
tation 3
Commercial
and other 2
Manu
facturing
Period
Stocks
32
832
-1 ,8 4 2
69
870
Communi
cation
Public
utility
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
616
1,104
2,242
1,075
853
-598
282
821
1,558
1,778
956
1,158
987
946
1,104
718
165
-149
186
36
2,659
3,444
3,669
4,464
6,861
533
652
892
1,353
2,917
1,668
1,716
1,579
1,834
4,806
Real estate
and financial 1
Stocks
575
467
120
241
94
Bonds
& notes
Stocks
864
1,302
1,069
1,687
2,564
-9 0
-1 3 0
-741
866
1,107
1969—IV...............
266
484
181
580
97
41
1,447
467
551
87
559
605
1970—1.................
I I ................
I l l ...............
IV...............
1,084
1,334
2,169
2,054
463
-6
39
374
-1 6 0
343
263
407
415
633
326
404
591
64
21
428
17
-2 4
-1 5
58
1,214
1,953
1,917
1,777
395
583
750
1,189
546
2,134
991
1,135
27
10
6
51
204
504
691
1,165
289
361
139
318
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,
OPEN-END INVESTMENT COMPANIES
(In millions of dollars)
Sales and redemption
of own shares
Assets (market value
at end of period)
Year
Sales and redemption
of own shares
Assets (market value
at end of period)
Month
Sales 1 Redemp
tions
Net
sales
Cash
Total 2 position
3 Other
1958..............
1959..............
1960..............
1,620
2,280
2,097
511
786
842
1,109
1,494
1,255
13,242
15,818
17,026
634
860
973
1961..............
1962..............
1963..............
2,951
2,699
2,460
1,160
1,123
1,504
1,791
1,576
952
22,789
21,271
25,214
980
1,315
1,341
1964..............
1965..............
1966..............
3,404
4,359
4,671
1,875
1,962
2,005
1,528
2,395
2,665
29,116
35,220
34,829
1,329
1.803
2,971
1967..............
1968..............
1969..............
4,670
6,820
6,717
2,745
3,841
3,661
1,927
2,979
3,056
44,701
52,677
48,291
2,566
3,187
3,846
12,608 1970—A p r...
M ay..
14,958
Ju n e ..
16,053
July...
Aug...
21,809
Sept...
19,956
Oct.. .
23,873
Nov...
Dec.. .
27,787
33,417
31,858 1971—Jan....
Feb.. .
42,135
M ar...
49,490
A pr...
44,445
1 Includes contractual and regular single purchase sales, voluntary
and contractual accumulation plan sales, and reinvestment of invest
ment income dividends; excludes reinvestment of realized capital gains
dividends.
2 Market value at end of period less current liabilities.
Sales i
Redemp
tions
371
304
364
306
311
357
420
343
467
306
300
197
193
167
218
243
215
307
487
349
468
547
242
322
425
394
Cash
Total 2 position3
Other
65
4
167
113
144
139
177
128
160
42,785
39,824
38,459
40,714
42,452
44,353
43,567
45,223
47,618
3,909
4,042
4,396
4,817
4,794
4,593
4,377
4,126
3,649
38,876
35,782
34,230
35,897
37,658
39,760
39,190
41,097
43,969
245
27
43
153
50,251
51,300
53,618
55,883
3,663
3,600
3,328
3,046
46,588
47,700
50,290
52,837
Net
sales
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.
A 48
BUSINESS FINANCE □ J U N E 1971
SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS
(In millions o f dollars)
Industry
1968
1966
1965
1967
1968
19691
1969
III
IV
IV
M anufacturing
T o ta l (1 7 7 c o r p s.):
S a le s ............................................................ 1 7 7 ,2 3 7 1 9 5 ,7 3 8 2 0 1 ,3 9 9 2 2 5 ,7 4 0 2 4 3 ,4 4 9
P rofits b efo re t a x e s ............................. 2 2 ,0 4 6 2 3 ,4 8 7 2 0 ,8 9 8 2 5 ,3 7 5 2 5 ,6 2 2
P rofits after ta x e s ................................. 1 2 ,4 6 1 1 3 ,3 0 7 1 2 ,6 6 4 1 3 ,7 8 7 1 4 ,0 9 0
D iv id e n d s .................................................
6 ,9 2 0
6 ,5 2 7
6 ,9 8 9
7 ,2 7 1
7 ,7 5 7
N o n d u r a b le g o o d s in d u stries (78
c o r p s .) : 2
S a l e s ............................................................ 6 4 ,8 9 7 7 3 ,6 4 3 7 7 ,9 6 9 8 4 ,8 6 1 9 2 ,0 3 3
P rofits b efore t a x e s .............................
9 ,0 3 9
7 ,8 4 6
9 ,1 8 1
9 ,8 6 6 1 0 ,3 3 3
P rofits after t a x e s ................................
5 ,3 7 9
4 ,7 8 6
5 ,7 9 9
5 ,4 7 3
6 ,1 0 3
D iv id e n d s .................................................
2 ,5 2 7
3 ,0 8 2
2 ,7 2 9
3 ,0 2 7
3 ,2 8 9
D u r a b le g o o d s in d u stries (99 c o r p s .) : 3
S a le s ............................................................ 1 1 2 ,3 4 1 1 2 2 ,0 9 4 1 2 3 ,4 2 9 1 4 0 ,8 7 9 1 5 1 ,4 1 6
P rofits b efo re ta x e s.............................
1 4 ,2 0 0 1 4 ,3 0 7 1 1 ,8 2 2 1 5 ,5 1 0 1 5 ,2 9 0
P rofits after ta x e s .................................
7 ,9 8 9
7 ,8 3 4
6 ,3 5 2
7 ,6 7 5
7 ,9 8 9
D iv id e n d s .................................................
4,000 4 ,1 9 1
4 ,1 8 9
3 ,9 6 4
4 ,4 6 9
S e lec te d in d u stries:
F o o d s an d kin d red p r o d u c ts (25
c o r p s .) :
S a le s ............................................................
P rofits b e fo re t a x e s .............................
P rofits after t a x e s ................................
D iv id e n d s .................................................
C h em ica l an d allied p r o d u c ts (20
c o r p s .) :
S a le s ..........................................................
P rofits b efore t a x e s ...........................
P rofits after t a x e s ..............................
D iv id e n d s ...............................................
P etro leu m refining (16 c o rp s.):
S a le s .........................................................
P rofits b efore ta x e s ...........................
P rofits after t a x e s ..............................
D iv id e n d s ..............................................
P rim ary m etals and p r o d u c ts (34
c o r p s .) :
S a le s .........................................................
Profits b efore t a x e s ...........................
Profits after t a x e s ..............................
D iv id e n d s ...............................................
M a ch in ery (2 4 c o r p s .):
S a le s ..........................................................
P rofits b efo re ta x e s ...........................
P rofits after t a x e s ..............................
D iv id e n d s ...............................................
A u to m o b ile s and eq u ip m en t (14
c o r p s .):
S a le s ..........................................................
P rofits b efore ta x e s ...........................
P rofits after ta x e s ..............................
D iv id e n d s ...............................................
5 3 ,6 3 3
5 ,9 8 5
3 ,2 9 8
1 ,7 1 6
5 7 ,7 3 2
6 ,8 7 8
3 ,6 0 9
1 ,7 3 1
5 3 ,9 8 7
5 ,5 8 0
3 ,0 3 0
1 ,7 4 6
6 0 ,3 8 8
6 ,9 3 2
3 ,8 5 0
2 ,0 7 8
5 7 ,6 1 3
6 ,5 6 5
3 ,5 7 9
1 ,8 3 8
6 1 ,3 9 2
6 ,8 8 7
3 ,7 5 0
1 ,9 1 6
6 1 ,0 6 1
5 ,8 5 1
3 ,2 4 4
1 ,8 8 5
6 3 ,3 8 3
6 ,3 1 9
3 ,5 1 7
2 ,1 1 8
2 0 ,1 5 6
2 ,3 8 7
1 ,4 2 8
743
2 1 ,0 2 5
2 ,4 9 2
1 ,4 1 1
751
2 1 ,5 5 1
2 ,5 4 5
1 ,4 7 1
763
2 2 ,1 2 9
2 ,4 4 2
1 .4 8 9
825
2 1 ,7 6 4
2 ,5 2 4
1 ,4 9 2
812
2 3 ,1 9 8
2 ,6 6 4
1 ,5 5 9
2 3 ,4 4 5
2 ,6 4 1
1 ,5 2 9
82 0
2 3 ,6 2 6
2 ,5 0 4
1 ,5 2 3
849
3 3 ,4 7 7
3 ,5 9 8
1 ,8 7 1
972
3 6 ,7 0 7
4 ,3 8 6
2 ,1 9 8
981
3 2 ,4 3 5
3 ,0 3 6
1 ,5 5 9
983
3 8 ,2 5 9
4 .4 9 0
2 ,3 6 1
1 ,2 5 3
3 5 ,8 4 9
4 ,0 4 1
2 ,0 8 7
1 ,0 2 6
3 8 ,1 9 5
4 ,2 2 4
2 ,1 9 0
1 ,1 0 8
3 7 ,6 1 6
3 ,2 1 0
1 ,7 1 5
1 ,0 6 5
3 9 ,7 5 6
3 ,8 1 5
1 ,9 9 7
1 ,2 7 0
1 6 ,4 2 7
1 ,7 1 0
89 6
509
1 9 ,0 3 8
1 ,9 1 6
1 ,0 0 8
564
2 0 ,1 3 4
1 ,9 6 7
1 ,0 4 1
583
2 2 ,1 0 9
2 ,2 2 7
1 ,0 9 3
616
2 4 ,5 9 3
2 ,4 2 5
1 ,1 7 1
661
5 ,1 8 4
498
255
150
5 ,3 8 9
563
26 0
155
5 ,7 3 7
590
2 85
155
5 ,7 9 9
576
293
156
5 ,7 1 4
53 4
261
162
5 ,9 2 3
581
275
165
6 ,6 3 1
314
164
6 ,3 2 5
644
321
170
1 8 ,1 5 8
2 ,8 9 1
1 ,6 3 0
926
2 0 ,0 0 7
3 ,0 7 3
1 ,7 3 7
948
2 0 ,5 6 1
2 ,7 3 1
1 ,5 7 9
960
22,
2 4 ,4 9 4
3 ,2 5 8
1 ,7 7 3
1 ,031
5 ,4 3 6
76 0
390
236
5 ,6 9 7
80 7
419
236
5 ,7 8 2
806
412
243
5 ,8 9 3
744
398
287
5 ,8 4 5
844
448
25 2
6 ,2 3 0
875
473
251
6 ,2 3 6
818
441
254
,1 8 3
721
411
274
1 7 ,8 2 8
1 ,9 6 2
1 ,5 4 1
737
2 0 ,8 8 7
2 ,6 8 1
2 4 ,2 1 8
2 ,2 0 6
1 ,0 3 9
2 5 ,5 8 6
2 ,9 4 1
2 ,2 2 4
1 ,1 2 3
5 ,8 9 0
767
592
253
6 ,0 1 3
692
520
255
6,100
817
2 3 ,2 5 8
3 ,0 0 4
2 ,0 3 8
1 ,0 7 9
740
561
258
6 .2 1 4
667
534
273
6 ,1 0 7
726
562
282
6 ,6 1 0
728
558
273
6 ,2 6 4
750
554
28 2
,6 0 5
7 37
550
286
2 6 ,5 4 8
2 ,9 3 1
2 6 ,5 3 2
2 ,4 8 7
1 ,5 0 6
892
3 0 ,1 7 1
2 ,9 2 1
1 ,7 5 0
952
3 3 ,6 7 4
3 ,0 5 2
1 ,9 1 2
987
7 ,1 5 0
669
376
22 4
8 ,4 2 7
91 5
550
23 0
7 ,4 6 1
601
343
233
7 ,1 3 3
735
482
26 4
7 ,6 7 1
691
431
242
8,612
818
2 8 ,5 5 8
3 ,2 7 7
1 ,9 0 3
924
828
5 04
245
8 ,4 4 8
715
435
247
8 ,9 4 3
818
542
2 53
2 5 ,3 6 4
3 ,1 0 7
1 ,6 2 6
774
2 9 ,5 1 2
3 ,6 1 2
1 ,8 7 5
91 2
3 2 ,7 2 1
3 ,4 8 2
1 ,7 8 9
921
3 5 ,6 6 0
4 ,1 3 4
2 ,0 1 4
992
3 8 ,7 1 9
4 ,3 7 7
2 ,1 4 7
1 ,1 2 8
8 ,3 7 1
93 6
448
247
8 ,8 6 4
1 ,0 0 8
499
248
8 ,9 0 7
537
248
9 ,5 1 7
1 ,0 7 9
531
249
8 ,9 5 7
1 ,0 7 1
526
27 0
9 ,7 5 7
1 ,1 6 7
576
271
1 0 ,5 4 2
1 ,1 4 1
568
293
9 ,4 6 3
998
477
294
4 2 ,7 1 2
6 ,2 5 3
3 ,2 9 4
1 ,8 9 0
4 3 ,6 4 1
5 ,2 7 4
2 ,8 7 7
1 ,7 7 5
4 2 ,3 0 6
3 ,9 0 6
1 ,9 9 9
1 ,5 6 7
5 0 ,5 2 6
5 ,9 1 6
2 ,9 0 3
1 ,6 4 2
5 2 ,2 9 0
5 ,2 6 8
2 ,6 0 4
1 ,7 2 3
1 2 ,3 4 3
1 ,5 0 7
783
364
1 3 ,5 4 5
1 ,8 5 1
847
364
9 ,8 7 2
640
3 30
364
1 4 ,7 6 7
1 ,9 1 8
943
550
1 3 ,3 2 8
1 ,6 6 3
806
365
1 3 ,6 3 8
1 ,5 4 2
750
43 6
1 1 ,3 0 0
652
342
366
1 4 ,0 2 4
1 ,4 1 1
706
556
1 0 ,2 0 8
979
8 15
468
1 0 ,6 6 1
1 ,0 9 4
90 6
502
1 0 ,3 7 7
385
319
538
1 0 ,8 5 9
678
565
515
1 1 ,4 5 1
683
461
4 88
2 ,6 1 1
127
2 ,7 0 8
149
110
100
2 ,7 8 2
196
169
166
2 ,7 4 1
128
98
116
2 ,9 1 6
2 ,8 3 6
149
98
117
2 ,7 5 8
206
174
132
100
2 ,9 5 8
186
92
136
1 5 ,8 1 6
4 ,2 1 3
2 ,5 8 6
1 ,8 3 8
1 6 ,9 5 9
4 ,4 1 4
2 ,7 4 9
1 ,9 3 8
1 7 ,9 5 4
4 ,5 4 7
1 9 ,4 2 1
4 ,7 8 9
3 ,0 0 2
2 ,0 6 6
2,201
2 1 ,0 7 5
4 ,9 3 8
3 ,1 8 6
2 ,2 9 9
5 ,1 0 6
1,3 5 1
863
539
4 ,5 5 3
1 ,0 4 0
641
555
4 ,8 6 9
1 ,2 7 1
764
543
4 ,8 9 2
1 ,1 2 5
7 33
565
5 ,4 8 0
1 ,3 8 4
873
58 0
4 ,9 1 3
1 ,0 6 5
707
577
5 ,3 7 0
1 ,3 6 6
827
561
5 ,3 1 2
1 ,1 2 3
779
581
1 1 ,3 2 0
3 ,1 8 5
1 ,7 1 8
1 ,1 5 3
1 2 ,4 2 0
3 ,5 3 7
1 ,9 0 3
1 ,2 4 8
1 3 ,3 1 1
3 ,6 9 4
1 ,9 9 7
1 ,3 6 3
1 4 .4 3 0
3 ,9 5 1
1 ,9 6 1
1 ,4 2 8
1 6 ,0 5 7
4 ,0 9 8
2 ,0 8 0
1 ,4 9 3
3 ,4 8 6
971
525
351
3 ,5 4 4
989
441
318
3 ,6 2 9
990
493
396
3 ,7 7 1
3 ,8 5 3
1 ,0 7 0
54 0
368
3 ,9 7 5
1 ,0 4 3
523
371
4 ,0 4 4
979
497
373
4 ,1 8 5
1 ,0 0 6
520
381
1,'
1,' "
3 ,1 1 7
1 ,6 1 8
1,002
2,866
1,112
666
Public utility
R a ilr o a d :
O p eratin g r e v e n u e . .
Profits b efore ta x es.
Profits after ta x es. .
D iv id e n d s ....................
E lectric p o w er:
O p eratin g r e v e n u e . .
Profits b efo re ta x es.
P rofits after t a x e s . . .
D iv id e n d s ......................
T e le p h o n e :
O p eratin g r e v e n u e . .
P rofits b efo re ta x es.
Profits after t a x e s . . .
D iv id e n d s ......................
2,S ~~
1M an u factu rin g figures reflect c h a n g e s b y a nu m b er o f c o m p a n ie s in
a c c o u n tin g m eth o d s an d o th e r r ep o rtin g p ro ced u res.
2 In c lu d e s 17 co r p o r a tio n s in g ro u p s n o t sh o w n separately.
3 In clu d es 27 co r p o r a tio n s in g ro u p s n o t s h o w n separately.
N o t e . — M a n u factu rin g c o r p o ra tio n s : D a ta are o b ta in ed prim arily from
p u b lish ed reports o f c o m p a n ie s.
R a ilr o a d : Interstate C o m m erce C o m m issio n d a ta for C la ss I lineh a u l railroads.
E le c tric p o w e r : F ed eral P o w er C o m m issio n d a ta fo r C la ss A and B
ele c tric u tilities, e x c ep t th a t q u arterly figures o n o p era tin g rev en u e and
112
1,001
502
363
220
173
136
profits b efo re ta x es are p a rtly e stim a te d b y th e F ed era l R ese r v e to in clu d e
affiliated n o n e le ctr ic o p e r a tio n s.
T eleph on e: D a t a o b ta in ed fro m F ed era l C o m m u n ica tio n s C o m m is
sio n o n rev en u es an d p ro fits fo r te le p h o n e o p e r a tio n s o f th e B ell S y stem
C o n so lid a te d (in clu d in g th e 20 o p era tin g su b sid iaries and th e L o n g
L ines an d G en era l D e p ts . o f A m e r ic a n T e le p h o n e an d T eleg ra p h C o .)
and fo r tw o affiliated te le p h o n e c o m p a n ie s. D iv id e n d s are fo r th e 20
o p era tin g su b sid ia ries a n d th e tw o affiliates.
A ll s e rie s : Profits b efo re ta x es are in c o m e after all charges and b efo re
F ed era l in c o m e taxes a n d d iv id en d s.
B ack d ata a v a ila b le fro m th e D iv is io n o f R esea rch and S ta tistics.
Series have been temporarily discontinued.
JU N E 1971 □ BUSINESS FINANCE
A 49
CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)
Corporate
capital
Undis consump
tributed
tion
profits
allow
ances1
Year
Profits
before
taxes
In
come
taxes
Profits
after
taxes
Cash
divi
dends
1963..............
1964..............
1965..............
1966..............
59.4
66.8
77.8
84.2
26.3
28.3
31.3
34.3
33.1
38.4
46.5
49.9
16.5
17.8
19.8
20.8
16.6
20.6
26.7
29.1
31.8
33.9
36.4
39.5
1967..............
1968..............
1969..............
1970..............
79.8
88.7
91.2
81.3
33.2
40.6
42.7
37.5
46.6
48.2
48.5
43.8
21.4
23.3
24.7
25.2
25.3
24.9
23.9
18.6
43.0
46.5
49.8
53.5
1 Includes depreciation, capital outlays charged to current accounts, and
accidental damages.
Corporate
capital
Undis consump
tributed
tion
profits
allow
ances 1
Quarter
Profits
before
taxes
In
come
taxes
Profits
after
taxes
Cash
divi
dends
1969—III.. .
IV ...
89.9
88.5
42.1
41.4
47.9
47.1
25.0
25.2
22.9
21.9
50.1
51.0
1970—1 . . .
I I ....
I II...
IV ...
82.6
82.0
84.4
76.3
38.0
38.1
38.9
34.8
44.6
43.9
45.4
41.4
25.2
25.1
25.4
25.1
19.4
18.8
20.0
16.3
52.0
53.0
54.0
55.0
1971—
86.4
38.9
47.5
25.8
21.7
56.2
.. .
N o t e .—Dept, of Commerce estimates. Quarterly data are at seasonally
adjusted annual rates.
CURRENT ASSETS AND LIABILITIES OF CORPORATIONS
(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
Notes and accts.
payable
Other
U.S.
Govt.1
Other
Accrued
Federal
income
taxes
Total
Other
1963.............................
1964.............................
1965..............................
1966.............................
1967..............................
1968..............................
163.5
170.0
180.7
188.2
198.9
212.0
351.7
372.2
410.2
442.6
470.4
513.8
46.5
47.3
49.9
49.3
54.1
58.0
20.2
18.6
17.0
15.4
12.7
14.2
3.6
3.4
3.9
4.5
5.1
5.1
156.8
169.9
190.2
205.2
216.0
237.1
107.0
113.5
126.9
143.1
153.4
165.8
17.8
19.6
22.3
25.1
29.0
33.6
188.2
202.2
229.6
254.4
271.4
301.8
2.5
2.7
3.1
4.4
5.8
6.4
130.4
140.3
160.4
179.0
190.6
209.8
16.5
17.0
19.1
18.3
14.1
16.4
38.7
42.2
46.9
52.8
60.8
69.1
1969—11.......................
I l l .....................
IV .....................
215.6
213.8
213.2
534.5
544.7
555.9
55.4
53.9
54.9
13.5
12.4
12.7
4.8
4.6
4.8
248.6
256.3
261.0
175.2
180.0
184.8
36.9
37.4
37.8
318.9
330.9
342.7
7.2
7.5
7.3
220.1
227.9
238.1
15.0
15.9
16.6
76.5
79.6
80.6
1970—1........................
I I .......................
I l l .....................
I V .....................
213.3
213.6
214.0
217.0
561.0
566.3
567.6
572.1
52.9
52.5
53.7
56.9
12.5
10.7
9.3
9.7
4.7
4.4
4.2
4.2
264.5
268.7
270.0
268.1
188.0
190.2
191.8
194.4
38.5
39.9
38.5
38.8
347.7
352.7
353.6
355.2
7.2
7.0
6.8
6.6
238.4
244.1
243.0
244.5
18.0
14.6
15.4
15.9
84.2
87.1
88.3
88.1
1 Receivables from, and payables to, the U.S. Govt, exclude amounts
N o t e .—Securities and Exchange Commission estimates; excludes
offset against each other on corporations’ books.
banks, savings and loan assns., insurance companies, and investment
companies.
BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions of dollars)
Manufacturing
Period
Total
Durable
Non
durable
Public utilities
Transportation
Mining
Rail
road
Air
Other
Commu
nications
Electric andGas
other
Other1
Total
(S.A.
A.R.)
1964.......................
1965.......................
1966.......................
1967.......................
1968.......................
1969.......................
1970.......................
19712 r ...................
46.97
54.42
63.51
65.47
67.76
75.56
79.71
81.85
9.28
11.50
14.96
14.06
14.12
15.96
15.80
14.67
10.07
11.94
14.14
14.45
14.25
15.72
16.15
15.93
1.34
1.46
1.62
1.65
1.63
1.86
1.89
1.99
1.66
1.99
2.37
1.86
1.45
1.86
1.78
1.73
1.02
1.22
1.74
2.29
2.56
2.51
3.03
1.82
1.50
1.68
1.64
1.48
1.59
1.68
1.23
1.45
3.97
4.43
5.38
6.75
7.66
8.94
10.65
12.89
1.51
1.70
2.05
2.00
2.54
2.67
2.49
2.43
4.61
5.30
6.02
6.34
6.83
8.30
10.10
11.23
12.02
13.19
14.48
14.59
15.14
16.05
16.59
17.71
1969—III...............
IV...............
19.25
21.46
4.03
4.59
4.12
4.53
.47
.49
.49
.55
.53
.64
.40
.44
2.23
2.61
.80
.62
2.11
2.39
4.07
4.60
77.84
77.84
1970—1.................
I I ................
I l l ...............
IV................
17.47
20.33
20.26
21.66
3.59
4.08
3.87
4.26
3.56
4.07
4.12
4.40
.45
.47
.46
.50
.42
.47
.46
.43
.73
.80
.74
.76
.28
.31
.30
.33
2.15
2.59
2.79
3.12
.39
.69
.78
.63
2.14
2.59
2.56
2.81
3.76
4.26
4.16
4.42
78.22
80.22
81.88
78.63
1971—1..................
II2 r.............
I l l 2.............
17.68
20.80
20.68
3.11
3.68
3.68
3.58
3.98
4.01
.49
.52
.49
.34
.50
.45
.34
.61
.36
.28
.41
.40
2.70
3.30
3.25
.41
.60
.77
2.50
3.94
79.32
82.38
82.83
1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
7. 21
7. 26
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 50
REAL ESTATE CREDIT □ J U N E 1971
MORTGAGE DEBT OUTSTANDING
(In billions of dollars)
End of
period
All properties
Farm
Nonfarm
Other
holders 2
Finan
All
cial
hold insti
Indi
ers tutions 1 U.S. viduals
agen
and
cies
others
Finan Other
All
cial
hold insti
hold
ers tutions 1 ers3
1- to 4-family houses4
All
hold
ers
Total
Finan. Other
insti hold
tutions 1 ers
Multifamily and
commercial properties 5
Total
Mortgage
type6
Finan. Other FHA—
Con
VAhold underinsti
ven
tutions 1 ers
tional
written
....
37.6
35.5
20.7
21.0
4.7
2.4
12.2
12.1
6.4
4.8
1.5
1.3
4.9
3.4
31.2
30.8
18.4
18.6
11.2
12.2
7.2
6.4
12.9
12.2
8.1
7.4
4.8
4.7
3.0
4.3
28.2
26.5
1964
1965 .........
1966..........
1967.........
1968..........
300.1
325.8
347.4
370.2
397.5
241.0
264.6
280.8
298.8
319.9
11.4
12.4
15.8
18.4
21.7
47.7
48.7
50.9
53.0
55.8
18.9
21.2
23.3
25.5
27.5
7.0
7.8
8.4
9.1
9.7
11.9
13.4
14.9
16.3
17.8
281.2
304.6
324.1
344.8
370.0
197.6
212.9
223.6
236.1
251.2
170.3
184.3
192.1
201.8
213.1
27.3
28.7
31.5
34.2
38.1
83.6
91.6
100.5
108.7
118.7
63.7
72.5
80.2
87.9
97.1
19.9
19.1
20.3
20.9
21.6
77.2
81.2
84.1
88.2
92.8
204.0
223.4
240.0
256.6
277.2
1968—I I I . . 389.8
IV .. 397.5
313.5
319.9
21.1
21.7
55.1
55.8
27.2
27.5
9.6
9.7
17.5
17.8
362.6
370.0
247.0
251.2
209.7
213.1
37.3
38.1
115.6
118.7
94.1
97.1
21.5
21.6
92.0
92.8
270.6
277.2
403.7
411.7
418.7
425.3
324.7
331.0
335.7
339.1
22.6
23.4
24.9
26.8
56.4
57.1
58.1
59.4
28.1
28.8
29.2
29.5
9.8
10.1
10.1
9.9
18.3
18.7
19.1
19.6
375.7
382.9
389.5
395.9
254.8
259.5
263.4
266.8
216.0
219.9
222.5
223.6
38.8
39.5
40.9
43.2
120.9
123.4
126.0
129.0
98.9
101.0
103.1
105.5
21.9
22.4
22.9
23.5
94.5
96.6
98.5
100.2
281.2
286.3
291.0
295.7
1970—1 .... 429.4
I I '. . 435.6
I I I '. 443.1
IV '. 451.1
340.8
344.6
349.8
356.2
28.6
30.0
31.3
32.2
60.0
61.0
62.0
62.7
29.8
30.3
30.8
31.2
9.8
9.8
10.0
10.1
20.0
20.5
20.9
21.1
399.6
405.2
412.3
419.9
268.5
271.7
275.8
279.7
223.8
225.7
228.5
231.6
44.7
46.0
47.3
48.1
131.0
133.5
136.5
140.2
107.1
109.1
111.4
114.5
23.9
24.5
25.1
25.7
101.9
103.2
106.8
297.9
302.3
305.5
1941
1945
1969—I ....
II. ..
I II ..
IV ..
1 Commercial banks (including nondeposit trust companies but not
trust depts.), mutual savings banks, life insurance companies, and savings
and loan assns.
2 U.S. agencies include former FNMA and, beginning fourth quarter
1968, new GNMA as well as FHA, VA, PHA, Farmers Home Admin.,
and in earlier years, RFC, HOLC, and FFMC. They also include U.S.
sponsored agencies—new FNMA and Federal land banks. Other agencies
(amounts small or current separate data not readily available) included
with “individuals and others.”
3 Derived figures; includes debt held by Federal land banks and farm
debt held by Farmers Home Admin.
4 For multifamily and total residential properties, see p. A-52.
5 Derived figures; includes small amounts of farm loans held by savings
and loan assns.
6 Data by type of mortgage on nonfarm 1- to 4-family properties alone
are shown on p. A-52.
N o te . —Based on data from Federal Deposit Insurance Corp., Federal
Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul
ture and Commerce, Federal National Mortgage Assn., Federal Housing
Admin., Public Housing Admin., Veterans Admin., and Comptroller of
the Currency.
Figures for first three quarters of each year are F.R. estimates.
MORTGAGE LOANS HELD BY BANKS
(In millions of dollars)
Commercial bank holdings i
End of period
Residential
Total
Total
FHAin
sured
VAguaranteed
Con
ven
tional
Mutual savings bank holdings '
Other
non
farm
Total
Total
FHAin
sured
VAguaranteed
1,048
856
566
521
4,812
4,208
3,884
3,387
18,876
21,997
24,733
27,237
30,800
12,405
14,377
16,366
17,931
20,505
2,638
2,911
3,138
3,446
3,758
40,556
44,617
47,337
50,490
53,456
36,487
40,096
42,242
44,641
46,748
12,287
13,791
14,500
15,074
15,569
11,121
11,408
11,471
11,795
12,033
2,674
2,648
2,657
2,708
27,789
28,787
29,826
30,800
18,396
19,098
19,771
20,505
3,566
3,756
3,757
3,758
51,218
51,793
52,496
53,456
45,171
45,570
46,051
46,748
15,179
15,246
15,367
15,569
7,953
8,060
8,065
7,960
2,711
2,743
2,793
2,663
31,638
32,729
33,470
33,950
20,950
21,459
21,924
22,113
3,894
4,088
4,081
4,019
54,178
54,844
55,359
56,138
47,305
47,818
48,189
48,682
7,888
7,800
7,885
7,919
2,496
2,575
2,583
2,589
34,184
34,469
34,850
35,131
22,248
22,392
22,825
23,284
4,038 56,394 48,874
4,054 56,880 49,260
4,250 57,402 49,628
4,351 '57,948 '49,937
1941...............................
1945...............................
4,906
4,772
3,292
3,395
1964...............................
1965...............................
1966...............................
1967...............................
1968...............................
43,976
49,675
54,380
59,019
65,696
28,933
32,387
34,876
37,642
41,433
7,315
7,702
7,544
7,709
7,926
2,742
2,688
2,599
2,696
2,708
1968—1.........................
I I .......................
I l l ......................
IV.......................
60,119
61,967
63,779
65,696
38,157
39,113
40,251
41,433
7,694
7,678
7,768
7,926
1969—1.........................
I I .......................
I l l ......................
IV.......................
67,146
69,079
70,336
70,705
42,302
43,532
44,331
44,573
1970—1.........................
U p .....................
I l l ' ....................
IV.......................
70,854
71,291
72,393
73,275
44,568
44,845
45,318
45,640
1 Includes loans held by nondeposit trust companies, but not bank
trust depts.
2 Data for 1941 and 1945, except for totals, are special F.R. estimates.
N o te . —Second and fourth quarters, Federal Deposit Insurance Corpo
ration series for all commercial and mutual savings banks in the United
Residential
Farm
Con
ven
tional
Other
non
farm
Farm
900
797
28
24
13,079
14,897
16,272
17,772
19,146
4,016
4,469
5,041
5,732
6,592
53
52
53
117
117
11,872
11,918
11,945
12,033
18,120
18,406
18,739
19,146
5,931
6,108
6,329
6,592
116
115
116
117
15,678
15,769
15,813
15,862
12,097
12,151
12,169
12,166
19,530
19,898
20,207
20,654
6,756
6,908
7,053
7,342
117
117
117
114
15,865
15,931
16,017
16,087
12,105
12,092
12,127
12,008
20,904
21,237
21,654
21,842
7,413
7,519
7,671
7,893
107
101
103
119
States and possessions. First and third quarters, estimates based on special
F.R. interpolations after 1963 or beginning 1964. For earlier years, the
basis for first- and third-quarter estimates included F.R. commercial bank
call report data and data from the National Assn. of Mutual Savings
Banks.
J U N E 1971 o REAL E STA TE C R E D IT
A 51
MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES
(In millions of dollars)
Loans acquired
Loans outstanding (end of period)
Nonfarm
Nonfarm
Period
Total
Farm
Total
FHAinsured
VAguaranteed
Other i
1945..............................................
976
1962..............................................
1963..............................................
1964..............................................
1965..............................................
7,478
9,172
10,433
11,137
6,859
8,306
9,386
9,988
1,355
1,598
1,812
1,738
469
678
674
553
5,035
6,030
6,900
7,697
1966..............................................
1967..............................................
1968..............................................
1969'............................................
10,217
8,470
7,925
7,531
9,223
7,633
7,153
6,943
1,300
757
r755
663
467
444
346
220
7,456
6,432
'6,052
6,108
1970—Feb.r .................................
Mar....................................
Apr....................................
May...................................
June...................................
July...................................
Aug....................................
Sept....................................
O ct....................................
Nov....................................
Dec....................................
597
576
524
521
549
551
472
520
555
553
1,143
573
546
493
502
522
531
458
489
527
533
1,099
27
24
31
39
25
50
31
31
28
37
44
7
12
4
9
5
5
8
6
5
6
8
545
510
458
454
492
476
419
452
494
490
1,047
1971—Jan.....................................
Feb....................................
448
449
423
425
17
17
7
5
399
407
Total
Total
FHAinsured
Farm
VAguaranteed
Other
6,637
5,860
1,394
4,466
766
619
866
1,047
1,149
46,902
50,544
55,152
60,013
43,502
46,752
50,848
55,190
10,176
10,756
11,484
12,068
6,395
6,401
6,403
6,286
26,931
29,595
32,961
36,836
3,400
3,792
4,304
4,823
994
837
537
64,609
67,516
69,973
72,027
59,369 12,351
61,947 12,161
64,172 r12,469
66,254 12,271
6,201
6,122
5,954
5,701
40,817
43,664
'45,749
48,282
5,240
5,569
5,801
5,773
24
30
31
19
27
20
14
31
28
20
44
72,448
72,616
72,793
72,982
73,165
73,352
73,427
73,540
73,728
73,848
74,345
66,756
66,943
67,121
67,320
67,498
67,687
67,767
67,875
68,058
68,189
68,693
11,674
11,642
11,621
11,606
11,569
11,561
11,526
11,486
11,453
11,436
11,325
5,666
5,636
5,609
5,583
5,556
5,528
5,499
5,467
5,442
5,416
5,390
49,416
49,665
49,891
50,131
50,373
50,598
50,742
50,922
51,163
51,337
51,978
5,692
5,673
5,672
5,662
5,667
5,665
5,660
5,665
5,670
5,659
5,652
25
24
74,370
74,437
68,779
68,871
11,383
11,338
5,368
5,346
52,028
52,187
5,591
5,566
n il
i Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1)
monthly figures represent book value of ledger assets, whereas year-end
extracting operations are in process.
figures represent annual statement asset values, and (2) data for year-end
adjustments are more complete. Beginning 1970 monthly and year-earlier
N o t e .—Institute of Life Insurance data. For loans acquired, the
data are on a statement balance basis.
monthly figures may not add to annual totals; and for loans outstanding
FEDERAL HOME LOAN BANKS
MORTGAGE ACTIVITY OF SAVINGS AND
LOAN ASSOCIATIONS
(In millions of dollars)
(In millions of dollars)
Loans outstanding (end of period)
Loans made
Period
Period
1945.............
Total i
New
home Home
pur
con
struc chase
tion
1,913
181
1,358
Total 2
FHA- VAinguarsured anteed
Con
ven
tional
5,376
1963............. 25,173 7,185 10,055 90,944
1964............. 24,913 6,638 10,538 101,333
1965.............. 24,192 6,013 10,830 110,306
1966.............. 16,924 3,653 7,828 114,427
4,696
4,894
5,145
5,269
6,960
6,683
6,398
6,157
79,288
89,756
98,763
103,001
4,243 9,604 121,805 5,791
4,916 11,215 130,802 6,658
4,757 11,254 140,347 7,917
4,150 10,239 150,562 10,195
6,351
7,012
7,658
8,507
109,663
117,132
124,772
131,860
7,677
7,712
7,761
7,862
7,862
8,050
8,115
8,230
8,336
8,507
124,997
125,356
125,889
126,662
'127,403
'128,234
129,079
129,903
130,794
131,860
1967..............
1968..............
1969 ' ...........
1970..............
20,122
21,983
21,847
21,387
1970—M ar...
A pr...
M ay ..
Ju n e ..
July...
Aug...
Sept...
Oct....
N ov...
Dec.. .
1,262
1,400
1,586
2,086
2,080
2,111
2,183
2,127
1,972
2,474
284
325
373
398
393
369
388
406
355
416
585
627
741
1,017
1,071
1,147
1,100
1,032
919
968
1971—Ja n .'..
Feb.' .
M ar...
1,667
1,887
2,785
307
346
520
752 151,503 10,473
818 152,665 10,810
1,137 154,400 11,168
140,766
141,252
141,975
143,103
143,103
145,296
146,418
147,570
148,896
150,560
8,092
8,184
8,325
8,579
8,579
9,011
9,224
9,441
9,226
10,195
8,673 132,357
8,766 133,089
8,920 134,312
1 Includes loans for repairs, additions and alterations, refinancing, etc.
not shown separately.
2 Beginning with 1958, includes shares pledged against mortgage loans;
beginning with 1966, includes junior liens and real estate sold on contract;
and beginning with 1967, includes downward structural adjustment for
change in universe.
N o t e .—Federal
Home Loan Bank Board data.
Ad
vances
Repay
ments
Advances outstanding
(end of period)
Total
Short Long
term i term 2
Members’
deposits
278
213
195
176
19
46
1963....................... 5,601
1964....................... 5,565
1965....................... 5,007
1966....................... 3,804
4,296
5,025
4,335
2,866
4,784
5,325
5,997
6,935
2,863
2,846
3,074
5,006
1,921
2,479
2,923
1,929
1,151
1,199
1,043
1,036
1,527
1968....................... 2,734
1969....................... 5,531
1970....................... 3,256
4,076 4,386
1,861 5,259
1,500 9,289
1,929 10,615
3,985
4,867
8,434
3,081
401
392
855
7,534
1,432
1,382
1,041
2,331
9,745
9,860
10,008
10,236
10,373
10,446
10,524
10,539
10,524
10,615
8,501
7,721
7,031
7,002
4,445
3,967
3,477
3,265
3,156
3,081
1,243
2,138
2,997
3,234
5,927
6,478
7,047
7,274
7,368
7,534
985
1,108
1,188
1,331
1,193
1,238
1,339
1,496
1,978
2,331
331 10,326
428 9,926
266 9,690
2,924
2,697
2,814
7,403
7,230
6,876
2,750
3,093
3,423
1945.......................
1970—Mar............
Apr.............
May...........
June...........
July............
Aug............
Sept............
Oct.' ..........
N ov.'.........
Dec.............
136
393
240
299
243
179
204
134
112
224
1971—Jan.............
Feb.............
Mar............
43
27
30
388
278
92
71
106
106
125
119
126
134
1 Secured or unsecured loans maturing in 1 year or less.
2 Secured loans, amortized quarterly, having maturities of more than
1 year but not more than 10 years.
N o te .— Federal
Home Loan Bank Board data.
A 52
REAL ESTATE CREDIT □ J U N E 1971
MORTGAGE DEBT OUTSTANDING
ON RESIDENTIAL PROPERTIES
MORTGAGE DEBT OUTSTANDING ON
NONFARM 1- to 4-FAMILY PROPERTIES
(In billions of dollars)
(In billions of dollars)
Governmentunderwritten
All residential
Multifamily i
Total
Finan
cial
insti
tutions
Other
holders
Total
Finan
cial
insti
tutions
Other
holders
1941...............
1945...............
196 3
196 4
24.2
24.3
211.2
231.1
14.9
15.7
176.7
195.4
9.4
8.6
34.5
35.7
5.9
5.7
29.0
33.6
3.6
3.5
20.7
25.1
2.2
2.2
8.3
8.5
196 5
196 6
1967*.............
1968*.............
250.1
264.0
280.0
298.6
213.2
223.7
236.6
250.8
36.9
40.3
43.4
47.8
37.2
40.3
43.9
47.3
29.0
31.5
34.7
37.7
8.2
8.8
9.2
9.6
1968—I V
298.6
250.8
47.8
47.3
37.7
9.6
1969—............1
I I
II I
I V
303.0
308.9
314.1
319.0
254.4
259.3
262.7
265.0
48.6
49.6
51.4
54.0
48.3
49.4
50.6
52.2
38.4
39.3
40.2
41.3
9.9
10.1
10.4
10.9
1970— 1
I I ........
I ll* . . .
IV * ....
321.7
326.3
331.8
337.6
265.9
268.9
272.8
277.3
55.8
57.4
59.0
60.3
53.2
54.5
56.1
57.9
42.9
43.2
44.2
45.7
10.3
11.3
11.9
12.2
End of
period
End of period
Total
Total
FHAin
sured
VAguaranteed i
Con
ven
tional
1954...............................
1963...............................
1964...............................
18.6
182.2
197.6
4.3
65.9
69.2
4.1
35.0
38.3
.2
30.9
30.9
14.3
116.3
128.3
1965...............................
1966...............................
1967*.............................
1968*.............................
212.9
223.6
236.1
251.2
73.1
76.1
79.9
83.8
42.0
44.8
47.4
50.6
31.1
31.3
32.5
33.2
139.8
147.6
156.1
167.4
1968—1.......................... 239.1
II......................... 243.2
247.0
IV....................... 251.2
81.0
82.1
83.2
84.4
48.1
48.7
49.6
50.6
32.9
33.4
33.6
33.8
158.1
161.1
163.8
166.8
I l l .......................
IV.......................
254.8
259.5
263.5
266.8
85.3
87.1
88.8
90.1
51.4
52.2
53.4
54.5
33.9
34.9
35.4
35.6
169.5
172.3
174.6
176.9
1970—1..........................
I I .........................
I ll* .....................
IV*.....................
268.5
271.7
275.8
279.7
91.6
92.1
95.1
55.6
56.1
58.1
36.0
36.0
37.0
177.1
179.9
180.7
1969—1..........................
i Structures of five or more units.
1 Includes outstanding amount of VA vendee accounts held by private
investors under repurchase agreement.
N o te . —Based on data from same source as for “ Mortgage Debt Out
standing” table (second preceding page).
N o t e .—For total debt outstanding, figures are FHLBB and F.R.
estimates. For conventional, figures are derived.
Based on data from FHLBB, Federal Housing Admin., and Veterans
Admin.
GOVERNMENT-UNDERWRITTEN RESIDENTIAL
LOANS MADE
(In millions of dollars)
DELINQUENCY RATES ON HOME MORTGAGES
VA-guaranteed
FHA-insured
(Per 100 mortgages held or serviced)
Mortgages
Mortgages
Period
Total
Prop
Pro
erty
im
Ex
jects
i
Total3 New
New isting
prove
homes
homes homes
ments2
1945............
257
217
665
1964............ 8,130 1,608 4,965
End of period
20
895
171
663
192
2,846
1,023
1,821
5,760
591
4,366
583
642
4,516
4,924 1,123
5,570 1,316
634
641
623
656
693
2,652
2,600
3,405
3,774
4,072
876
980
1,143
1,430
1,493
1,774
1,618
2,259
2,343
2,579
1970............ 11,908 2,667 5,447 3,178
1965............
1966............
1967............
1968............
1969............
8,689
7,320
7,150
8,275
9,129
1,705
1,729
1,369
1,572
1,551
617
3,442
1,311
2,131
943
1,097
1,087
1,030
1,099
1,218
1,055
1,286
176
218
230
247
268
304
273
280
351
478
475
504
521
564
497
472
367
336
319
228
247
292
240
484
48
64
62
49
63
57
45
50
238
263
298
306
326
341
318
316
98
99
109
107
110
117
106
109
140
164
189
199
216
224
212
207
1971—Jan.. 1,015
Feb..
951
Mar.. 1,095
Apr.* 1,136
295
284
318
293
*476
*450
*531
*467
202
184
199
330
41
32
46
47
297
256
102
90
195
166
1970—May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec..
1 Monthly figures do not reflect mortgage amendments included in annual
totals.
2 Not ordinarily secured by mortgages.
3 Includes a small amount of alteration and repair loans, not shown separ
ately; only such loans in amounts of more than $1,000 need be secured.
N o te . —Federal Housing Admin, and Veterans Admin, data. FHA-insured
loans represent gross amount of insurance written; VA-guaranteed loans,
gross amounts of loans closed. Figures do not take into account principal
repayments on previously insured or guaranteed loans. For VA-guaranteed
loans, amounts by type are derived from data on number and average
amount of loans closed.
Loans not in foreclosure
but delinquent for—
Ex
isting
homes
Loans in
fore
closure
Total
30 days
60 days
90 days
or more
1963...............
1964...............
3.30
3.21
2.32
2.35
.60
.55
.38
.31
.34
.38
1965...............
1966...............
1967...............
1968...............
1969...............
3.29
3.40
3.47
3.17
3.22
2.40
2.54
2.66
2.43
2.43
.55
.54
.54
.51
.52
.34
.32
.27
.23
.27
.40
.36
.32
.26
.27
1966—IV ___
3.40
2.54
.54
.32
.36
1967—1..........
I I ........
III.
IV ___
3.04
2.85
3.15
3.47
2.17
2.14
2.36
2.66
.56
.45
.52
.54
.31
.26
.27
.27
.38
.34
.31
.32
1968—1..........
I I ........
III.
IV ___
2.84
2.89
2.93
3.17
2.11
2.23
2.23
2.43
.49
.44
.48
.51
.24
.22
.22
.23
.32
.28
.26
.26
1969—1..........
I I ........
I ll....
IV ___
2.77
2.68
2.91
3.22
2.04
2.06
2.18
2.43
.49
.41
.47
.52
.24
.21
.26
.27
.26
.25
.25
.27
1970—1.........
2.96
2.83
3.10
3.64
2.14
2.10
2.26
2.67
.52
.45
.53
.61
.30
.28
.31
.36
.31
.31
.25
.33
Ill....
IV.......
N o t e .—Mortgage Bankers Association of America data from
reports on 1- to 4-family FHA-insured, VA-guaranteed, and con
ventional mortgages held by more than 400 respondents, including
mortgage bankers (chiefly), commercial banks, savings banks, and
savings and loan associations.
J U N E 1971 □ REAL E STA TE CRED IT
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION ACTIVITY
FEDERAL NATIONAL MORTGAGE
ASSOCIATION ACTIVITY
(In millions of dollars)
(In millions of dollars)
End of
period
Sales
Out
stand
ing
1
1,045
867
615
897
1,171
1,266
1,130
738
58
53
44
62
58
55
54
27
46
35
70
24
95
48
92
191
172
123
57
42
42
37
1,057
1,014
970
925
992
966
802
795
775
776
738
35
38
56
27
21
100
705
682
707
Total
VAguar
anteed
Pur
chases
1967............ 3,348
1968............ 4,220
1969............ 4,820
1970............ 5,184
2,756
3,569
4,220
4,634
592
651
600
550
860
1,089
827
621
4,903
4,938
4,965
5,006
5,033
5,070
5,102
5,109
5,132
5,141
5,184
4,311
4,350
4,381
4,426
4,458
4,499
4,535
4,546
4,573
4,587
4,634
592
588
584
580
575
571
567
563
559
554
550
1971-Jan.... 5,188
F eb ... 5,213
M a r... 5,241
4,641
4,670
4,703
546
543
538
1970-Feb...
Mar...
A pr...
M a y ..
June..
July...
Aug...
Sept...
O ct....
N ov...
D ec...
End of
period
Made
during
period
FHAin
sured
N o te . —Government National Mortgage Assn. data. Data prior to
Sept. 1968 relate to Special Assistance and Management and Liquidating
portfolios of former FNMA and include mortgages subject to participation
pool of Government Mortgage Liquidation Trust, but exclude conven
tional mortgage loans acquired by former FNMA from the RFC Mortgage
Co., the Defense Homes Corp., the Public Housing Admin., and Com
munity Facilities Admin.
HOME-MORTGAGE YIELDS
Period
FHA series
New
homes
6.52
7.03
7.82
8.35
6.53
7.12
7.99
8.52
6.55
7.21
8.26
9.05
8.41
8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.38
8.34
8.34
8.36
8.37
8.41
8.42
8.35
8.32
8.26
8.55
8.55
8.55
8.60
8.60
8.50
8.50
8.45
8.30
9.10
9.11
9.16
9.11
9.07
9.01
8.97
8.90
8.40
8.18
7.91
7.66
7.48
8.08
7.80
7.60
7.47
7.95
7.75
7.60
7.55
New
homes
Existing
homes
1967.......................
1968.......................
1969.......................
1970.......................
6.46
6.97
7.81
8.44
1970—Apr.............
May...........
June...........
July............
Aug............
Sept............
Oct.............
Nov............
Dec.............
1971—Jan..............
Feb.............
Mar............
Apr.............
VAguaranteed
Pur
chases
Sales
1967............
1968............
1969............
1970............
5,522 4,048
7,167 5,121
10,950 7,680
15,502 11,071
1,474
2,046
3,270
4,431
1,400
1,944
4,121
5,078
12
1970-Mar...
A pr...
M ay..
Ju n e ..
July...
Aug...
Sept...
O ct....
N ov...
D ec...
12,499
12,949
13,287
13,658
14,084
14,452
14,807
15,152
15,396
15,502
8,739
9,069
9,324
9,610
9,936
10,218
10,499
10,780
10,981
11,071
3,760
3,880
3,962
4,047
4,148
4,234
4,308
4,372
4,416
4,431
1971-Jan.... 15,520 11,092
F eb ... 15,448 11,057
M ar... 15,420
4,428
4,391
Made
during
period
Out
stand
ing
1,736
2,697
6,630
8,047
501
1,287
3,539
5,202
526
485
374
434
470
413
406
397
294
165
696
592
817
712
532
718
650
535
541
600
4,108
4,152
4,510
4,709
4,684
4,834
4,849
4,805
4,930
5,203
75
61
139
5,092
N o te . —Federal National Mortgage Assn. data. Data prior to Sept.
1968 relate to secondary market portfolio of former FNMA. Mortgage
commitments made during the period include some multifamily and non
profit hospital loan commitments in addition to 1- to 4- family loan com
mitments accepted in FNMA’s free market auction system.
7.32
7.37
N o te . —Annual data are averages of monthly figures. The
FHA data are based on opinion reports submitted by field offices
on prevailing local conditions as of the first of the succeeding
month. Yields on FHA-insured mortgages are derived from
weighted averages of private secondary market prices for Sec.
203, 30-year mortgages with minimum downpayment and an
assumed prepayment at the end of 15 years. Gaps in data are
due to periods of adjustment to changes in maximum permis
sible contract interest rates. The FHA series on average contract
interest rates on conventional first mortgages in primary markets
are unweighted and are rounded to the nearest 5 basis points.
The FHLBB effective rate series reflects fees and charges as well
as contract rates (as shown in the table on conventional firstmortgage terms, p. A-35) and an assumed prepayment at end
of 10 years
Implicit yield, by
commitment period
(in months)
Mortgage amounts
Date
of
auction
Accepted
Offered
Total
By commitment
period (in months)
3
Mortgage
commitments
FHAin
sured
Total
Secondary
market
Yield
on FHAinsured
new
home
loans
FHLBB series
(effective rate)
Mortgage
transactions
(during
period)
FEDERAL NATIONAL MORTGAGE ASSOCIATION
ACTIVITY UNDER FREE MARKET SYSTEM
(In per cent)
Primary market
(conventional loans)
Mortgage
holdings
Mortgage
commitments
Mortgage
transactions
(during
periiod)
Mortgage
holdings
A 53
6
3
6
12-18
12-18
In millions of dollars
In per cent
5..
19..
267.5 149.8
352.5 149.7
62.2
53.2
73.1
88.1
14.5
8.4
8.90
8.89
8.92
8.90
8.97
8.95
Nov. 2..
16..
341.5 181.2
222.4 170.3
100.0
75.8
62.4
79.4
18.7
15.1
8.90
8.89
8.93
8.90
8.93
8.92
Dec. 7..
14..
166.5 127.8
165.1 124.7
54.7
42.1
60.9
72.1
12.2
10.5
8.56
8.51
8.54
8.43
8.57
8.47
8.40
1970—Oct.
1971—Jan. 25..
44.1
35.5
9.9
25.6
7.82
7.96
Feb. 8 ..
23.4
23.3
10.6
12.7
7.67
7.67
Mar. 1..
15..
29..
185.6
193.5
122.5
51.8
74.0
67.0
15.2
17.9
36.7
29.3
41.2
26.3
7.3
14.9
3.9
7.43
7.32
7.32
7.43
7.44
7.45
7.56
7.54
7.55
Apr. 12..
26..
126.9 54.6
687.2 313.9
39.8
154.0
9.4
126.6
5.4
33.4
7.32
7.43
7.45
7.54
7.53
7.57
May 10.. 1,168.0 236.8
24.. 785.7 151.6
145.7
44.6
71.3
84.4
19.7
22.5
7.57
7.95
7.68
7.97
7.74
8.03
77.1
57.8
11.6
8.05
8.18
8.16
June
1..
322.4 146.6
N o te . —Implicit secondary market yields are gross—before deduction of 38basis-point fee paid for mortgage servicing. They reflect the average accepted bid
yield for Govt.-underwritten mortgages after adjustment by Federal Reserve
to allow for FNMA commitment fees and FNMA stock purchase and holding
requirements, assuming a prepayment period of 15 years for 30-year loans. Com
mitments for 12-18 months are for new homes only.
A 54
CONSUMER CREDIT □ J U N E 1971
TOTAL CREDIT
(In millions of dollars)
Instalment
End of period
Total
Auto
mobile
paper
Other
consumer
goods
paper
Total
Noninstalment
Repair
and mod
ernization
loans 1
Personal
loans
Total
Single
payment
loans
Charge
accounts
Service
credit
1939.
1941 .
1945.
7,222
9,172
5,665
4,503
6,085
2,462
1,497
2,458
455
1,620
1,929
816
298
376
182
1,088
1,322
1,009
2,719
3,087
3,203
787
845
746
1,414
1,645
1,612
518
597
845
1950.
1955.
1960.
21,471
38,830
56,141
14,703
28,906
42,968
6,074
13,460
17,658
4,799
7,641
11,545
1,016
1,693
3,148
2,814
6,112
10,617
6,768
9,924
13,173
1,821
3,002
4,507
3,367
4,795
5,329
1,580
2,127
3,337
1965.
1966.
1967.
1968.
1969.
1970.
90,314
97,543
102,132
113,191
122,469
126,802
71,324
77,539
80,926
89,890
98,169
101,161
28,619
30,556
30,724
34,130
36,602
35,490
18,565
20,978
22,395
24,899
27,609
29,949
3,728
3,818
3,789
3,925
4,040
4,110
20,412
22,187
24,018
26,936
29,918
31,612
18,990
20,004
21,206
23,301
24,300
25,641
7,671
7,972
8,428
9,138
9,096
9,484
6,430
6,686
6,968
7,755
8,234
8,850
4,889
5,346
5,810
6,408
6,970
7,307
1970—Apr..............................
M ay.............................
June.............................
July..............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec..............................
120,402
121,346
122,542
123,092
123,655
123,907
123,866
123,915
126,802
97,104
97,706
98,699
99,302
99,860
100,142
99,959
99,790
101,161
36,264
36,455
36,809
36,918
36,908
36,738
36,518
36,011
35,490
26,850
27,055
27,303
27,538
27,801
28,055
28,152
28,378
29,949
3,960
4,003
4,040
4,081
4,104
4,123
4,126
4,133
4,110
30,030
30,193
30,547
30,765
31,047
31,226
31,163
31,268
31,612
23,298
23,640
23,843
23,790
23,795
23,765
23,907
24,125
25,641
9,102
9,159
9,239
9,254
9,294
9,316
9,313
9,345
9,484
6,900
7,273
7,473
7,509
7,508
7,489
7,656
7,757
8,850
7,296
7,208
7,131
7,027
6,993
6,960
6,938
7,023
7,307
1971-
125,077
123,815
123,604
125,047
100,101
99,244
99,168
100,028
35,004
34,869
35,028
35,496
29,575
28,928
28,591
28,682
4,067
4,051
4,045
4,077
31,455
31,396
31,504
31,773
24,976
24,571
24,436
25,019
9,480
9,506
9,557
9,676
8,094
7,353
7,207
7,689
7,402
7,712
7,672
7,654
Feb...............................
Mar..............................
Apr...............................
i Holdings of financial institutions; holdings of retail outlets are ineluded in “other consumer goods paper.”
N o t e .—Consumer
hold, family, and other personal expenditures, except real estate mortgage
loans. For back figures and description of the data, see “Consumer Credit,”
Section 16 (New ) of Supplement to Banking and, Monetary Statistics , 1965,
and pp. 983-1003 of the B u l l e t in for Dec. 1968.
credit estimates cover loans to individuals for house-
INSTALMENT CREDIT
(In millions of dollars)
Financial institutions
End of period
Total
Retail outlets
Total
Com
mercial
banks
Finance
cos. 1
Credit
unions
Mis
cellaneous
lenders 1
Total
Auto
mobile
dealers 2
Other
retail
outlets
1939.
1941.
1945.
4,503
6,085
2,462
3,065
4,480
1,776
1,079
1,726
745
1,836
2,541
910
132
198
102
18
15
19
1,438
1,605
686
123
188
28
1,315
1,417
658
1950,
1955.
1960.
14,703
28,906
42,968
11,805
24,398
36,673
5,798
10,601
16,672
5,315
11,838
15,435
590
1,678
3,923
102
281
643
2,898
4,508
6,295
287
487
359
2,611
4,021
5,936
1965.
1966
1967,
1968.
1969.
1970
71,324
77,539
80,926
89,890
98,169
101,161
61,533
66,724
69,490
77,457
84,982
87,064
28,962
31,319
32,700
36,952
40,305
41,895
24,282
26,091
26,734
29,098
31,734
31,123
7,324
8,255
8,972
10,178
11,594
32,500
965
1,059
1,084
1,229
1,349
1,546
9,791
10,815
11,436
12,433
13,187
14,097
315
277
285
320
336
327
9,476
10,538
11,151
12,113
12,851
13,770
1970—Apr...................................................
May.................................................
97,104
97,706
98,699
99,302
99,860
100,142
99,959
99,790
101,161
84,802
85,335
86,311
86,876
87,315
87,471
87,243
86,820
87,064
40,245
40,515
40,979
41,703
41,934
42,051
42,010
41,740
41,895
31,537
31,595
31,862
31,561
31,588
31,510
31,309
31,081
31,123
11,644
11,778
12,030
12,141
12,292
12,409
12,422
12,438
12,500
1,376
1,447
1,440
1,471
1,501
1,501
1,502
1,561
1,546
12,302
12,371
12,388
12,426
12,545
12,671
12,716
12,970
14,097
332
333
336
337
337
337
335
332
327
11,970
12,038
12,052
12,089
12,208
12,334
12,381
12,638
13,770
100,101
99,244
99,168
100,028
86,308
85,910
86,015
86,805
41,611
41,446
41,563
42,094
30,791
30,511
30,326
30,369
12,353
12,351
12,509
12,686
1,553
1,602
1,617
1,656
13,793
13,334
13,153
13,223
324
323
325
330
13,469
13,011
12,828
12,893
July..................................................
1971-
Feb........................................ ........
1 Finance companies consist of those institutions formerly classified
as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and mutual
savings banks.
2 Automobile paper only; other instalment credit held by automobile
dealers is included with “other retail outlets.”
See also N o te to table above,
JU N E 1971 □ CONSUM ER CR ED IT
A 55
INSTALMENT CREDIT HELD BY FINANCE
COMPANIES
INSTALMENT CREDIT HELD BY COMMERCIAL BANKS
(In millions of dollars)
(In millions of dollars)
End of
period
Autoimobile
pa per
Total
Pur
chased
Direct
Other
con
sumer
goods
paper
Repair
and
modern
ization
loans
Per
sonal
loans
End of period
Total
Auto
mobile
paper
Other
con
sumer
goods
paper
Repair
and
modern
ization
loans
Per
sonal
loans
1939
1941
1945
1,079
1,726
745
237
447
66
178
338
143
166
309
114
135
161
110
363
471
312
1939.
1941.
1945.
1,836
2,541
910
932
1,438
202
134
194
40
151
204
62
619
705
606
1950.
1955.
I960.
5,798
10,601
16,672
1,177
3,243
5,316
1,294
2,062
2,820
1,456
2,042
2,759
834
1,338
2,200
1,037
1,916
3,577
1950.
1955.
1960.
5,315
11,838
15,435
3,157
7,108
7,703
692
1,448
2,553
80
42
173
1,386
3,240
5,006
1965.
1966.
1967.
1968.
1969.
1970.
28,962
31,319
32,700
36,952
40,305
41,895
10,209
11,024
10,927
12,213
12,784
12,433
5,659
5,956
6,267
7,105
7,620
7,587
4,166
4,681
5,126
6,060
7,415
8,633
2,571
2,647
2,629
2,719
2,751
2,760
6,357
7,011
7,751
8,855
9,735
10,482
1965.
1966.
1967.
1968.
1969.
1970.
24,282
26,091
26,734
29,098
31,734
31,123
9,400
9,889
9,538
10,279
11,053
9,941
4,425
5,171
5,479
5,999
6,514
6,648
224
191
154
113
106
94
10,233
10,840
11,563
12,707
14,061
14,440
1970—A pr....
May. ..
June...
Ju ly ...
Aug.. .
Sept.. .
O c t....
Nov....
Dec__
40,245
40,515
40,979
41,703
41,934
42,051
42,010
41,740
41,895
12,550
12,600
12,680
13,002
12,981
12,890
12,824
12,628
12,433
7,598
7,635
7,722
7,759
7,748
7,734
7,730
7,654
7,587
7,568
7,667
7,828
8,078
8,183
8,263
8,286
8,299
8,633
2,685
2,705
2,731
2,755
2,770
2,783
2,785
2,779
2,760
9,844
9,908
10,018
10,109
10,252
10,381
10,385
10,380
10,482
1970-
31,537
31,595
31,862
31,561
31,588
31,510
31,309
31,081
31,123
10,949
10,990
11,073
10,771
10,732
10,619
10,465
10,226
9,941
6,478
6,505
6,560
6,499
6,529
6,568
6,594
6,548
6,648
101
99
98
96
94
94
94
94
94
14,009
14,001
14,131
14,195
14,233
14,229
14,156
14,213
14,440
1971--Jan .. . . 41,611
F eb .... 41,446
Mar__ 41,563
Apr__ 42,094
12,253
12,165
12,147
12,268
7,530
7,561
7,667
7,825
8,613
8,535
8,499
8,595
2,727
2,704
2,692
2,702
10,488
10,481
10,558
10,704
1971-
30,791
30,511
30,326
30,369
9,754
9,672
9,674
9,781
6,605
6,493
6,363
6,280
93
93
93
98
14,339
14,253
14,196
14,210
See
N o te
to first table on preceding page.
July.....................
Feb......................
N o t e .—Finance companies consist of those institutions formerly clas
sified as sales finance, consumer finance, and other finance companies.
NONINSTALMENT CREDIT
INSTALMENT CREDIT HELD BY OTHER
FINANCIAL LENDERS
(In millions of dollars)
(In millions of dollars)
End of period
Total
Auto
mobile
paper
Other
con
sumer
goods
paper
Repair
and
modern
ization
loans
Per
sonal
loans
Single
payment
loans
End of period
Total
Charge accounts
Com
mer
cial
banks
Other
finan
cial
insti
tutions
Retail
outlets
Credit
cards1
Service
credit
1939...............................
1941...............................
1945...............................
150
213
121
27
47
16
5
9
4
12
11
10
106
146
91
1950...............................
1955...............................
1960...............................
692
1,959
4,566
159
560
1,460
40
130
297
102
313
775
391
956
2,034
1939...............
1941...............
1945...............
2,719
3,087
3,203
625
693
674
162
152
72
1,414
1,645
1,612
1965...............................
1966...............................
1967...............................
1968...............................
1969...............................
1970...............................
8,289
9,314
10,056
11,407
12,943
14,046
3,036
3,410
3,707
4,213
4,809
5,202
498
588
639
727
829
898
933
980
1,006
1,093
1,183
1,256
3,822
4,336
4,704
5,374
6,122
6,690
1950...............
1955...............
1960...............
6,768
9,924
13,173
1,576
2,635
3,884
245
367
623
3,291
4,579
4,893
76
216
436
1,580
2,127
3,337
1970—Apr.....................
M ay....................
June....................
July.....................
Aug.....................
Sept.....................
Oct......................
Nov.....................
Dec.....................
13,020
13,225
13,470
13,612
13,793
13,910
13,924
13,999
14,046
4,835
4,897
4,998
5,049
5,110
5,158
5,164
5,171
5,202
834
845
863
872
881
890
891
893
898
1,174
1,199
1,211
1,230
1,240
1,246
1,247
1,260
1,256
6,177
6,284
6,398
6,461
6,562
6,616
6,622
6,675
6,690
196
196
196
196
196
197
18,990
20,004
21,206
23,301
24,300
25,641
6,690
6,946
7,340
7,975
7,900
8.205
981
1,026
1,088
1,163
1,196
1.279
5,724
5,812
5,939
6,450
6,650
6.932
706
874
1,029
1,305
1,584
1.918
4,889
5,346
5,810
6,408
6,970
7.307
1971—Jan.......................
Feb......................
Mar.....................
Apr......................
13,906
13,953
14,126
14,342
5,143
5,148
5,215
5,292
888
889
901
914
1,247
1,254
1,260
1,277
6,628
6,662
6,750
6,859
1970—A pr....
M ay...
June...
Ju ly ...
Aug....
Sept....
Oct.. . .
Nov....
Dec__
23,298
23.640
23,843
23,790
23,795
23,765
23,907
24,125
25.641
7,892
7,925
8.005
8.005
8,041
8,062
8,059
8,071
8.205
1,210
1.234
1.234
1,249
1.253
1.254
1.254
1,274
1.279
5,289
5,633
5,765
5,727
5,664
5,617
5,797
5,884
6.932
1,611
1,640
1,708
1,782
1,844
1.872
1,859
1.873
1.918
7,296
7,208
7,131
7,027
6,993
6,960
6,938
7,023
7.307
1971—J a n ....
F eb ....
M ar....
Apr----
24,976
24,571
24,436
25,019
8,196
8.205
8,249
8,350
1,284
1,301
1,308
1,326
6,144
5,435
5,316
5,774
1,950
1.918
1,891
1,915
7,402
7,712
7,672
7,654
N o t e .— Other financial lenders consist of credit unions and miscel
laneous lenders.
5
6
7
8
9
0
518
597
845
1 Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank credit card accounts outstanding are included
in estimates of instalment credit outstanding.
See also N o t e to first table on preceding page.
A 56
CONSUM ER CREDIT □ J U N E 1971
INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT
(In millions of dollars)
Total
Automobile paper
Period
S.A.1
N.S.A.
S.A.1
N.S.A.
Other consumer
goods paper
S.A.1
N.S.A.
Repair and
modernization loans
S.A.1
N.S.A.
Personal loans
S.A.1
N.S.A.
Extensions
1965........................................
1966........................................
1967........................................
1968........................................
1969........................................
1970........................................
78,586
82,335
84,693
97,053
102,888
104,130
27,227
27,341
26,667
31,424
32,354
29,831
22,750
25,591
26,952
30,593
33,079
36,781
2,266
2,200
2,113
2,268
2,278
2,145
26 343
27^203
28 961
32*768
35 177
35*373
June.............................
July..............................
Aug..............................
Sept..............................
8,491
9,004
8,683
9,065
8,809
8,849
8,580
8,414
8,536
8,773
8,857
9,534
9,497
8,915
8,580
8,670
8,271
10,194
2,571
2,595
2,587
2,685
2,537
2,621
2,349
2,127
2,170
2,776
2,696
3,023
2,952
2,540
2,402
2,463
2,006
2,045
2,843
3,183
2,925
3,124
3,168
3,071
3,113
3,113
3,281
2,792
3,008
3,019
3,141
3,152
3,097
3,200
3,147
4,562
183
180
189
192
173
186
182
180
177
185
213
220
220
197
194
184
176
149
2,894
3,046
2,982
3,064
2,931
2,971
2,936
2,994
2,908
3,020
2,940
3,272
3,184
3,026
2,887
2,823
2,942
3,438
1971—Jan................................
Feb...............................
Mar..............................
Apr...............................
8,916
9,081
9,533
9,751
7,545
7,489
9,575
10,079
2,461
2,687
2,897
2,872
1,997
2,336
3,074
3,100
3,252
3,204
3,210
3,415
2,868
2,431
3,076
3,363
177
197
209
205
122
155
197
219
3,026
2,993
3,217
3,259
2,558
2,567
3,228
3,397
1970—Apr..............................
Repayments
23,543
25,404
26,499
28,018
29,882
30,943
69,957
76,120
81,306
88,089
94,609
101,138
1965........................................
1966........................................
1967........................................
1968........................................
1969........................................
1970........................................
20,518
23,178
25,535
28,089
30,369
34,441
2,116
2,110
2,142
2,132
2,163
2,075
23,780
25,428
27,130
29,850
32,195
33,679
1970—Apr..............................
May.............................
June.............................
July..............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec...............................
8,195
8,589
8,242
8,622
8,577
8,490
8,662
8,716
8,515
8,331
8,255
8,541
8,894
8,357
8,298
8,853
8,440
8,823
2,527
2,600
2,573
2,752
2,632
2,599
2,550
2,577
2,618
2,600
2,505
2,669
2,843
2,550
2,572
2,683
2,513
2,566
2,729
2,888
2,750
2,874
2,967
2,913
3,036
3,082
2,945
2,756
2,803
2,771
2,906
2,889
2,843
3,103
2,921
2,991
173
174
174
170
175
174
179
176
175
176
170
183
179
174
175
181
169
172
2,766
2,927
2,745
2,826
2,803
2,804
2,897
2,881
2,777
2,799
2,777
2,918
2,966
2,744
2,708
2,886
2,837
3,094
1971—Jan................................
Feb...............................
Mar..............................
Apr...............................
8,829
8,979
9,038
9,088
8,605
8,346
9,651
9,219
2,623
2,636
2,696
2,566
2,483
2,471
2,915
2,632
3,145
3,212
3,164
3,249
3,242
3,078
3,413
3,272
175
188
196
184
165
171
203
187
2,886
2,943
2,982
3,089
2,715
2,626
3,120
3,128
Net change in credit outstanding 2
1965........................................
1966........................................
1967........................................
1968........................................
1969........................................
1970........................................
3,684
1,937
168
3,406
2,472
-1 ,1 1 2
8,629
6,215
3,387
8,964
8,279
2,992
2,232
2,413
1,417
2,504
2,710
2,340
150
90
-2 9
136
115
70
2,563
1,775
1,831
2,918
2,982
1,694
1970—Apr..............................
May.............................
June.............................
July.............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec..............................
296
415
441
443
232
359
-8 2
-3 0 2
21
442
602
993
603
558
282
-183
-169
1,371
44
-5
14
-6 7
-9 5
22
-201
-4 5 0
-448
176
191
354
109
-1 0
-170
-220
-507
-521
114
295
175
250
201
158
77
31
336
36
205
248
235
263
254
97
226
1,571
10
6
15
22
-2
12
3
4
2
9
43
37
41
23
19
3
7
-2 3
128
119
237
238
128
167
39
113
131
221
163
354
218
282
179
-6 3
105
344
1971—Jan................................
Feb...............................
Mar..............................
Apr...............................
87
102
495
663
-1 ,0 6 0
-857
-7 6
860
-1 6 2
51
201
306
-4 8 6
-135
159
468
107
-8
46
166
-3 7 4
-647
-337
91
2
9
13
21
-4 3
-1 6
-6
32
140
50
235
170
-1 5 7
-5 9
108
269
1 Includes adjustments for differences in trading days.
2 Net changes in credit outstanding are equal to extensions less
repayments.
N ote.—Estimates are based on accounting records and often
include financing charges. Renewals and refinancing of loans,
purchases and sales of instalment paper, and certain other transac
tions 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 Supplem ent to Banking and M onetary
Statistics, 1965, and pp. 983-1003 of the B u l l e t i n for Dec. 1968.
JU N E
1971 □ CONSUMER CRED IT
A 57
INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER
(In millions of dollars)
Total
Period
S.A.i
N.S.A.
Commercial banks
Finance companies
S.A.i
S.A. i
N.S.A.
N.S.A.
Other financial
lenders
S.A.i
N.S.A.
Retail outlets
S.A.i
N.S.A.
Extensions
78,586
82,335
84,693
97,053
102,888
104,130
1965.
1966.
1967.
1968.
1969.
1970.
25,192
25,406
25,496
28,836
30,854
29,662
29,528
30,073
30,850
36,332
38,533
39,136
9,436
10,362
10,911
12,850
14,245
14,619
14,430
16,494
17,436
19,035
19,256
20,713
1970—Apr..
May.
June.
July..
Aug..
Sept..
O ct..
Nov..
Dec..
8,491
9,004
8,683
9,065
8,809
8,849
8,580
8,414
8,536
8,773
8,857
9,534
9,497
8,915
8,580
8,670
8,271
10,194
3,208
3,291
3,262
3,382
3,308
3,417
3,276
3,159
3,326
3,450
3,341
3,643
3,697
3,385
3,352
3,301
2,885
3,390
2,502
2,639
2,616
2,590
2,427
2,441
2,371
2,300
2,240
2,581
2,503
2,912
2,731
2,416
2,300
2,387
2,342
2,795
1,198
1,252
1,233
1,365
1,235
1,265
1,221
1,184
1,187
1,229
1,309
1,407
1.418
1,318
1,212
1,187
1,150
1,206
1,583
1,822
1,572
1,728
1,839
1,726
1,712
1,771
1,783
1,513
1,704
1,572
1,651
1,796
1,716
1,795
1,894
2,803
1971—Jan...
Feb..
Mar..
Apr..
8,916
9,081
9,533
9,751
7,545
7,489
9,575
10,079
3,338
3,478
3,646
3,676
885
988
783
3,948
2,411
2,513
2,681
2,624
1,961
2,121
2,686
2,672
1,288
1,282
1,394
1,475
1,055
1,117
1.418
1,552
1,879
1,808
1,812
1,976
1,644
1,263
1,688
1,907
Repayments
1965.
1966.
1967.
1968.
1969.
1970.
25,663
27,716
29,469
32,080
35,180
37,961
69,957
76,120
81,306
88,089
94,609
101,138
22,551
23,597
24,853
26,472
28,218
29,858
8,310
9,337
10,169
11,499
12,709
13,516
13,433
15,470
16,815
18,038
18,502
19,803
1970—Apr..
May.
June.
July..
Aug..
Sept..
O ct..
Nov..
Dec..
8,195
8,589
8,242
8,622
8,577
8,490
8,662
8,716
8,515
8,331
8,255
8,541
8,894
8,357
8,298
8,853
8,440
8,823
3,081
3,170
3,041
3,264
3,185
3,249
3,258
3,276
3,262
3,161
3,071
3,179
3,388
3.154
3.235
3,342
3.155
3.235
2,415
2,574
2,548
2.580
2,507
2,482
2.551
2.552
2,465
2,477
2,445
2,645
2,617
2,389
2,378
2,588
2,570
2,753
117
173
087
184
158
127
165.
135
113
1,128
1,104
1,162
1,276
1,137
1,095
1,173
1,075
1,159
582
672
566
594
727
632
688
753
675
1,565
1,635
1,555
1,613
1,677
1,590
1,750
1,640
1,676
1971—Jan...
Feb..
Mar..
Apr..
8,829
8,979
9,038
9,088
8,605
8,346
9,651
9,219
3,385
3,369
3,387
3,332
3,169
3,153
3,666
3,417
2,486
2,656
2,674
2.580
2,293
2,401
2,871
2,629
199
186
207
315
1,195
1,070
1,245
1,336
759
768
770
861
1,948
1,722
1,869
1,837
Net change in credit outstanding 2
1965.
1966.
1967.
1968.
1969.
1970.
8,629
6,215
3,387
8,964
8,279
2,992
3,865
2,357
1,381
4,252
3,353
1,590
2,641
1,809
643
2,364
2,636
-611
997
1,024
621
997
754
910
1,126
1,025
742
1,351
1,536
1,103
1970—Apr..
May.
June.
July.
Aug..
Sept..
O ct..
Nov..
Dec..
296
415
441
443
232
359
-8 2
-3 0 2
21
442
602
993
603
558
282
-183
-169
1,371
127
121
221
533
123
168
18
-117
64
289
270
464
724
231
117
-4 1
-2 7 0
155
87
65
68
-405
-8 0
-41
-1 8 0
-252
-225
104
58
267
-301
27
-7 8
-201
-228
42
81
79
146
181
77
138
56
49
74
101
205
245
142
181
117
14
75
47
1
150
6
134
112
94
24
18
108
-5 2
69
17
38
119
126
45
254
1,127
1971—Jan...
Feb..
Mar..
A pr..
87
102
495
663
-1,060
-857
-7 6
860
-4 7
109
259
344
-2 8 4
-165
117
531
-7 5
-143
7
44
-332
-2 8 0
-185
43
89
96
187
160
-1 4 0
47
173
216
120
40
42
115
-3 0 4
-4 5 9
-181
70
1 Includes adjustments for differences in trading days.
2 Net changes in credit outstanding are equal to extensions less re
payments, except in certain months when data for extensions and re
payments have been adjusted to eliminate duplication resulting from
large transfers of paper. In those months the differences between ex
tensions and repayments for some particular holders do not equal the
changes in their outstanding credit. Such transfers do not affect total
instalment credit extended, repaid, or outstanding.
N o t e .—“Other financial lenders” include credit unions and miscellaneous
lenders. See also N o te to preceding table and Note 1 at bottom of p. A-54.
A 58
INDUSTRIAL PRODUCTION: S.A. □ J U N E 1971
MARKET GROUPINGS
(1957-59= 100)
Grouping
1957-59 1969
pro
por aver
age®
tion
1970
Apr.
May
June
July
Aug.
1971
Sept.
Oct.
Nov.
Dec,
Jan.
F eb.r
M ar.r Apr.
Total index...................................
100.00 172.8 170.2 169.0 168.8 169.2 168.8 165.8 162.3 161.5 164.4 165.6 165.2 165.5 166.2
Final products , total.........................
166.8 166.5 163.1 159.8 159.4 162.9 163.4 163.0 163.4 163.4
32.31 162.5 163.2 163.2 162.8 163.5 163.5 160.1 157.0 157.0 162.4 164.5 164.6 166.2 167.1
15.04 188.6 179.9 177.3 176.3 173.7 173.0 169.6 165.9 164.5 164.2 161.3 159.4 157.3 155.6
52.65 174.6 171.9 170.4 171.2 171.4 171.2 168.9 164.8 163.8 166.0 168.0 167.8 168.0 169.3
Consumer goods..........................
Equipment, including defense. . .
Materials..........................................
47.35 170.8 168.5 167.7 167.1
Consumer goods
Automotive products .........................
Autos................................................
Auto parts and allied products. . . .
Home goods and apparel..................
Home goods.....................................
Appliances, TV, and radios........
Appliances................................
TV and home radios................
Furniture and rugs.......................
Miscellaneous home goods..........
Apparel, knit goods, and shoes.. . .
Consumer staples .............................
Processed foods...............................
Beverages and tobacco....................
Drugs, soap, and toiletries..............
Newspapers, magazines, and books
Consumer fuel and lighting............
Fuel oil and gasoline...................
Residential utilities.......................
Electricity.................................
Gas............................................
173.2 158.4 166.4 170.3 172.8 167.5 133.1 110.1 112.2 145.9 166.3 174.4 176.0 171.2
1.82 162.8 136.1 156.0 163.0 163.8 163.3 108.5 76.5 78.1 131.9 155.1 168.1 167.3 153.9
1.39 186.8 187.8 180.1 179.9 184.7 173.1 165.6 154.5 157.0 164.3 181.1 182.8 187.4 194.0
3.21
10.00 159.3 155.0 153.0 153.2 155.4 156.4 153.4 153.9 150.3 150.9 151.4 150.5 153.4 154.8
4.59
1.81
1.33
.47
1.26
1.52
5.41
184.0
180.2
192.4
145.6
180.3
191.5
138.5
180.0
178.9
206.7
100.3
170.6
189.0
133.8
178.4
182.6
213.9
94.2
165.5
184.1
131.4
177.7
178.8
201.4
115.2
164.9
186.9
132.4
182.5
192.3
218.4
118.8
165.2
185.0
132.4
183.7
198.6
223.7
127.8
164.9
181.6
133.2
179.0
189.9
212.8
125.5
164.4
178.0
131.7
19.10 162.4 168.4 168.0 166.6 166.3 166.6 168.1
8.43
2.43
2.97
1.47
3.67
1.20
2.46
1.72
.74
136.6
146.8
209.0
147.1
199.6
144.6
226.3
249.7
140.2
150.1
218.6
146.0
212.6
152.1
242.1
267.5
141.1
142.2
219.6
146.9
212.3
149.7
242.8
268.1
137.9
142.6
217.4
147.6
213.7
153.0
243.3
268.1
138.7
141.9
217.4
142.9
212.8
148.2
244.3
269.1
139.4
144.7
213.9
143.1
213.5
148.9
245.0
269.7
139.3
149.0
215.5
140.5
219.2
152.7
251.7
281.9
180.2
194.3
216.0
133.2
166.5
174.8
131.6
180.0
188.1
208.3
131.1
169.3
179.3
125.2
174.0
169.1
182.2
132.2
170.5
182.8
131.3
166.7 168.0 171.1
135.2
148.1
215.0
140.8
221.7
155.2
254.2
285.0
138.3
147.5
220.1
143.2
217.2
154.8
247.6
275.1
141.0
152.1
226.8
144.7
218.0
155.6
248.5
276.0
176.6
173.9
193.5
118.7
171.4
184.2
130.0
175.9
172.8
192.3
118.0
172.4
182.6
129.0
180.2
179.7
198.1
128.0
174.2
185.6
130.7
184.4
188.7
202.6
149.5
175.4
186.9
171.2 170.3 171.2 172.8
141.4
155.1
222.2
145.5
218.1
153.2
249.7
277.1
138.4
159.0
220.7
144.9
219.6
153.3
252.0
280.0
140.3
161.4
222.3
143.0
218.4
156.9
248.5
274.5
141.0
228.0
144.4
161.0
Equipment
Business equipment...........................
Industrial equipment.......................
Commercial equipment...................
Freight and passenger equipment..
Farm equipment..............................
Defense equipment...........................
11.63 195.6 193.0 188.7 188.0 186.1
6.85
2.42
1.76
.61
179.1
220.0
246.7
136.8
182.1
223.4
215.4
130.4
175.8
220.4
216.8
127.4
175.2
220.4
213.8
128.6
174.6
218.3
207.3
126.0
185.9 182.3 178.9 177.8 177.9 174.3 173.0 170.5 169.5
173.3
214.2
214.3
133.2
170.5
210.5
206.5
133.6
169.7
207.0
193.7
128.0
167.9
205.7
194.6
130.8
166.8 164.4 162.3 160.3 159.3
204.3 200.7 199.3 198.3 197.6
202.3 203.6 196.4 191.1 188.9
127.0 96.7 121.9 115.3
3.41
Materials
Durable goods materials ...................
Consumer durable...........................
Equipment........................................
Construction....................................
Metal materials n.e.c.......................
26.73 165.5 159.6 157.5 157.
Nondurable materials.......................
25.92 183.9 184.6 183.8 184.9
Business supplies.............................
Containers....................................
General business supplies............
Nondurable materials n.e.c.............
Business fuel and power..................
Mineral fuels................................
Nonresidential utilities................
Electricity.................................
General industrial................
Commercial and other.........
Gas............................................
3.43
7.84
9.17
6.29
163.9
191.9
152.4
152.8
143.6
183.8
148.8
147.7
146.0
177.5
146.8
146.8
155.4
176.6
145.1
150.0
158.4 157.4 151.9 144.3 141.9 147.0 149.7 150.3 151.4 152.8
156.0 161.3 143.6 110.9 111.2 139.0 151.3 153.0 150.6 148.5
9.11
3.03
6.07
7.40
166.6
168.6
165.5
237.8
164.5
166.2
163.7
236.1
162.1
168.2
159.1
233.1
163.4
166.0
162.1
234.7
178.4 175.9 173.1 166.7 1 6 4 .1 163.6 162.9 160.9 161.2 156.8
146.3 147.3 146.1 144.2 140.6 142.0 148.6 148.3 149.1 149.6
152.6 147.2 140.1 136.2 133.7 143.3 147.0 148.9 150.1 150.2
184.9 185.4 186.4 186.0 186.3 185.7 187.0 185.8 185.2 186.3
164.9 165.0 161.2 159.5 160.7 162.2 163.9 160.1 155.2 158.2
161.9 167.5 163.1 164.1 164.2 166.5 174.4 166.2 153.1 157.1
166.4 163.7 160.3 157.2 158.9 160.0 158.7 157.1 156.3 158.8
234.2 233.4 235.8 236.0 238.5 235.3 238.4 238.2 240.5 238.9
9.41
6.07
2.86
2.32
1.03
1.21
.54
158.2
134.9
216.7
220.6
216.1
236.1
163.8
139.1
226.5
232.0
220.6
254.2
166.0
142.0
228.1
233.8
221.8
256.7
166.6
142.4
228.6
234.3
223.9
255.9
165.4
140.2
229.4
235.0
227.2
254.8
167.5
144.4
227.9
233.0
225.4
252.7
171.8
147.5
235.1
238.7
225.8
263.0
172.5
148.0
236.7
240.8
223.1
268.6
170.1
146.6
231.1
233.9
216.3
261.2
169.3
145.0
232.6
235.8
219.5
262.1
169.1
143.5
234.3
237.9
219.8
265.8
169.4
141.8
239.3
243.7
224.9
272.6
170.8 172.2
144.9 146.8
236.8
240.4
222.4
268.5
Supplementary groups of
consumer goods
Automotive and home goods...
Apparel and staples...................
For N ote see p. A-61.
7.80 179.5 171.1 173.5 172.7 178.5 177.0 160.1 151.4 152.1 162.5 172.4 175.3 178.4 179.0
24.51 157.1 160.7 159.9 159.0 158.8 159.2 160.1 158.9 158.6 162.3 162.1 161.2 162.3
J U N E 1971 □ INDUSTRIAL PRODUCTION: S.A.
A 59
INDUSTRY GROUPINGS
(1957-59 = 100)
Grouping
T o ta l in d e x ...........................................
M a n u fa ctu rin g , to ta l.............................
D u r a b le ..................................................
N o n d u r a b le ..........................................
M in in g .........................................................
U t ilitie s ........................................................
1957-59 1969
pro
aver
por
age*
tion
1970
Apr.
May
June
July
Aug.
1971
Sept.
Oct.
Nov.
100.00 172.8 170.2 169.0 168.8 169.2 168.8 165.8 162.3 161.5
86.45 173.9 170.0 168.1
48.07
38.38
8.23
5.32
176.5
170.6
130.2
221.2
168.0
168.5
Dec.
Jan.
Feb.' M a r.r Apr.
164.4 165.6 165.2 165.5 166.2
167.7 163.7 159.4 159.0 162.1
163.6 163.1 163.5 163.9
167.4
170.0
133.8
236.3
166.7
169.0
137.1
235.8
160.4
167.7
138.9
242.8
151.4
168.6
139.4
238.7
156.1
169.7
138.8
240.0
157.8
170.9
137.9
241.5
P r im a r y a n d f a b r ic a te d m e ta ls . . . .
P rim ary m e ta ls ........................................
Iron an d s t e e l ......................................
N o n fe r r o u s m etals an d p ro d u cts
F ab ricated m etal p r o d u c t s ...............
Structural m etal p a r t s ....................
12.32 162.5 154.7 155.2 155.6 157.1
157.1
154.2 145.6 142.1
146.1
148.7 151.0 152.6 153.4
M a c h in ery a n d r e la te d p r o d u c ts . . .
M a c h in er y ..................................................
N o n e le c tr ic a l m a c h in e r y ...............
E lectrical m a ch in e r y ........................
T ra n sp o r ta tio n e q u ip m e n t................
M o to r veh icles and p a r ts .............
A ircraft and oth e r e q u i p m e n t .. ,
In stru m en ts an d related p r o d u c t s .
O rd n an ce an d a c c e s s o r ie s ..................
27.98 188.4 178.6 177.6 178.0 177.4 176.0 167.2 158.9 156.8 162.9 164.1
168.4
171.9
133.9
233.8
167.6
168.7
134.8
234.9
167.3
168.9
135.5
235.4
153.5
166.9
139.9
244.8
157.6
169.9
136.3
245.2
157.7
170.7
138.7
242.2
157.4
172.0
138.8
246.0
D u rab le m anufactures
C la y , g la ss, a n d lu m b e r .......................
C la y , g la ss, an d s to n e p r o d u c t s .. .
L u m ber an d p r o d u c t s .........................
Furniture a n d m isc e lla n e o u s..............
Furniture an d fix tu r e s.........................
M isc e lla n e o u s m a n u fa ctu r e s............
6.95
5.45
1.50
5.37
2.86
14.80
8.43
6.37
10.19
4.68
5.26
1.71
1.28
149.1
140.3
181.1
179.8
173.3
195.7
194.6
197.2
174.6
166.9
177.8
194.4
138.9
133.0
175.4
175.2
170.2
194.9
191.7
199.1
153.1
148.0
154.1
195.4
142.6
136.7
174.4
171.4
164.2
191.0
187.1
196.3
157.3
158.5
153.0
191.3
142.7
138*8
169.2
172.3
164.4
190.6
185.2
197.7
159.9
164.4
153.3
187.9
4.72 142.5 140.3 139.2 134.1
145.2
136.8
172.6
172.5
162.9
191.2
185.2
199.1
158.1
164.8
149.7
187.0
145.6
134.1
169.7
171.9
164.0
190.3
183.0
199.9
156.7
164.7
147.1
183.3
142.6
129.5
172.1
169.2
162.7
186.2
180.0
194.5
139.0
127.3
145.7
181.8
133.9
121.5
161.5
160.6
158.0
182.9
176.1
191.9
122.0
95.4
141.1
181.3
129.3
117.2
162.9
158.7
158.2
179.0
172.7
187.4
121.9
96.9
139.5
181.7
135.4
122.3
177.1
160.0
158.9
176.7
170.4
185.1
142.5
142.0
139.3
180.5
137.6
130.0
171.7
163.0
163.3
174.7
166.2
185.9
148.6
158.8
136.1
181.4
140.8
132.9
173.4
164.1
165.1
143.1
138.3
174.9
164.8
168.5
144.6
141.9
169.7
164.8
165.5
162.8 162.0 160.6
173.0
165.5
182.9
148.8
166.5
129.5
179.5
173.4
165.0
184.5
146.6
164.8
126.1
176.2
173.3
162.4
187.7
142.8
157.9
124.5
178.7
134.7 136.9 133.8 135.0 133.3 135.4 138.7 138.4 139.1 140.9
2.99 156.0 154.6 152.6 149.4 148.8 150.1 148.7 149.4 148.5 152.6 151.3 150.9 152.3 154.5
1.73 119.1 115.5 116.1 107.6 110.5 114.2 108.2 110.1 107.0 105.8 117.0 116.9 116.3
3.05
176.7 173.5 169.1 168.3 167.3 166.1
164.8 165.2 166.7 166.1
166.3 166.6 168.2 169.5
1.54 186.9 179.5 174.4 173.8 172.5 172.9 171.7 173.9 174.7 174.5 174.5 173.9 175.0 M I A
1.51 166.4 167.4 163.6 162.6 162.0 159.1 157.7 156.3 158.5 157.5 158.0 159.1 161.2 161.5
N on durable m anufactures
T e x tile s, a p p a r e l, a n d le a th e r ...........
T e x tile m ill p r o d u c t s ............................
A p p arel p r o d u c t s ...................................
L eath er and p r o d u c t s ..........................
P a p er a n d p r in tin g .................................
P ap er and p r o d u c t s ..............................
P rin tin g an d p u b lish in g ......................
N e w s p a p e r s ..........................................
7.60 144.2 138.9 136.7 135.8 135.9 135.9 135.2 135.7 133.0 135.6 137.0 135.1 136.5 138.8
2.90 154.2 151.3 147.8 145.9 145.3 146.1 145.7 146.7 145.1 143.9 149.1 151.7 153.5 155.7
3.59 149.2 140.8 137.7 139.0 140.9 140.7 139.3 138.7 135.5 141.7 140.3 138.0 139.5
1.11 101.9 100.2 104.5 99.3 95.6 93.6 94.6 97.2 93.1 94.2 94.7 82.2 82.3
157.6 757.7 160.5
3.43 175.6 176.3 174.5 170.8 172.0 172.9 166.2 168.0 171.7
4.74 156.3 156.9 154.8 155.2 154.6 154.3 151.5 150.2 152.4
1.53 142.7 139.3 136.9 137.5 140.0 138.7 137.4 134.5 137.2
8 .17 164.4 165.0 163.0 161.7 161.9 162.1
159.7 159.9 159.9 159.5 159.9
169.5 170.0 170.0 169.3 170.6
152.7 152.6 152.6 152.5 152.3
136.6 134.9 139.3 135.5 134.0
C h em icals, p e tro le u m , a n d ru b b e r. .
C h em ica ls an d p r o d u c t s .....................
In d u strial c h e m ic a ls .........................
P etro leu m p r o d u c ts ..............................
R u b b er an d p la stic s p r o d u c ts .........
11.54 222.6 227.0 220.2 224.3 226.8 223.5 222.0 221.5 224.1 225.2 225.9 224.0 225.4 228.9
F oods, b e v era g e s, a n d to b a c c o .........
F o o d s an d b e v e r a g e s............................
F o o d m a n u fa ctu r e s..........................
B e v e r a g e s...............................................
T o b a c c o p r o d u c ts..................................
11.07 139.0 142.3 141.3 139.2 140.0 140.1
7.58
3.84
1.97
1.99
10.25
8.64
1.61
.82
239.0
283.0
143.8
238.7
244.4
289.2
147.9
239.4
241.4
281.3
146.5
212.2
143.1
141.0
154.6
117.8
243.2
285.8
147.8
227.8
140.7
138.3
153.7
120.7
243.3
285.7
145.5
244.8
141.1
139.5
149.6
126.6
239.8
280.7
147.5
236.9
140.7
136.7
161.9
117.3
143.7
140.1
162.8
125.1
127.4
117.7
129.3
139.0
132.0
184.0
64.2
129.8 132.3 133.3 131.0 135.1
141.6
138.8
156.4
121.8
240.8
282.0
150.3
221.4
240.7
282.9
150.1
219.1
243.7
285.4
154.2
218.9
243.9
281.7
156.0
222.3
245.3
283.5
152.7
224.3
243.8
283.9
152.1
219.8
244.7 246.3
285.0
153.0 155.2
223.8
141.0 138.4 141.2 142.7 144.9 145.0 145.5 144.3
142.4
138.7
162.2
122.9
139.6
135.7
160.3
124.1
142.7
139.4
160.7
121.6
144.4
140.1
167.6
121.7
146.7
140.9
178.1
121.9
146.5
141.0
175.9
125.7
147.0 146.8
141.0 141.4
179.3
126.1
M in in g
C o a l, o il, a n d g a s ....................................
C o a l ...............................................................
C ru d e o il an d natu ral g a s .................
O il and gas e x tr a c tio n ....................
C ru d e o i l ...........................................
G a s an d ga s liq u id s ....................
O il an d gas d r illin g ...........................
6.
M e ta l , sto n e, a n d earth m in e r a ls .. .
M e ta l m in in g ............................................
S to n e an d earth m in e r a ls ..................
1.43 143.5 153.1
1.16
5.64
4.91
4.25
.66
.73
123.0
131.3
142.9
135.2
134.2
131.9
143.9
135.8
124.3
135.1
146.7
137.5
127.5
131.7
143.2
134.4
128.5
136.5
148.2
139.8
138.2 139.2 137.1 136.2 134.8 133.2 135.7 136.0
127.9
140.3
152.1
144.1
128.1
141.5
152.6
145.1
127.3
139.1
151.2
143.8
146.6 146.1 146.8 146.6 142.2 143.3 150.1
130.1
137.4
148.5
141.0
136.3
134.6
145.3
137.3
129.5
134.0
144.8
136.4
338.1
135.2
146.5
138.6
151.4 152.5 151.0 153.0 152.0
.61 142.0 162.6 151.8 150.3 150.9 152.3 144.5 145.1 160.1 159.7 160.3 160.0 160.1 159.2
.82 144.7 146.1 142.8 143.0 143.8 142.3 140.5 142.0 142.7 145.2 146.7 144.4 147.8 146.7
U tilitie s
E le c tr ic .........................................................
G a s .................................................................
For N ote see p. A-61.
142.5
134.7
147.8
139.9
4.04 233.0 247.1 248.4 248.7 249.5 248.6 257.1 259.6 251.5 253.0 254.6 259.1 254.9
1.28 174.1
A 60
INDUSTRIAL PRODUCTION: N.S.A. □ J U N E 1971
MARKET GROUPINGS
(1957-59= 100)
Grouping
Total index...................................
Final products, total .........................
Consumer goods..........................
Equipment, including defense. . .
Materials..........................................
1957-59 1969
pro averpor
age?
tion
1970
Apr.
May
June
July
Aug.
100.00 172.8 170.6 169.1 172.1 163.6 169.1
1971
Sept.
Oct.
Nov.
Dec.
Jan. Feb.r Mar . r
0.2 166.5 162.9 162.5 164.2 165.9 167.1
Apr.
166.6
47.35 170.8 166.9 165.8 169.9 161.8 167.1 168.8 164.7 160.2 160.0 162.7 163.4 164.0 161.7
32.31 162.5 160.6 160.3 165.7 157.6 165.3 168.1 164.0 158.0 157.0 163.4 165.5 166.5 164.6
15.04 188.6 180.3 177.7 179.0 170.9 170.9 170.4 166.1 164.8 166.4 161.2 159.1 158.4 155.7
52.65 174.6 174.3 172.1 174.1 165.3 170.9 171.5 168.5 165.4 164.7 165.2 168.6 170.2 171.2
Consumer goods
Automotive products .........................
Autos................................................
Auto parts and allied products. . . .
3.21
1 .8 2
1 .3 9
173.2 167.0 173.8 182.9 131.6 116.6 135.2 118.9 117.5 148.4 174.8
183.5 184.3 178.3
149.1
174.0
176.1
197.0
117.4
167.6
176.8
128.1
155.3 158.3 157.3
162.8 152.4 173.2 185.0 98.3 68.9 108.5 88.0 87.5 137.6 169.1 184.9 184.0 167.7
186.8 186.3 174.4 180.1 175.6 179.5 170.3 159.7 157.0 162.5 182.3 181
184.7 192.2
Home goods and apparel.................
Home goods....................................
Appliances, TV, and radios........
Appliances................................
TV and home radios...............
Furniture and rugs.......................
Miscellaneous home goods.........
Apparel, knit goods, and shoes.. . .
10.00 159.3
Consumer staples .............................
Processed foods...............................
Beverages and tobacco....................
Drugs, soap, and toiletries..............
Newspapers, magazines, and books
Consumer fuel and lighting............
Fuel oil and gasoline...................
Residential utilities......................
Electricity.................................
Gas............................................
19.10 162.4 161.4 161.2 167.7 169.2 179.4 179.8 172.6 166.6 166.3 168.9 167.8 167.8 166.1
4.59
1.81
1.33
.47
1.26
1.52
5.41
8.43
2.43
2.97
1.47
3.67
1.20
2.46
1.72
.74
184.0
180.2
192.4
145.6
180.3
191.5
138.5
136.6
146.8
209.0
147.1
199.6
144.6
226.3
249.7
157.1 154.1
181.4
188.3
223.0
90.3
165.8
186.2
136.5
129.8
151.7
216.4
146.6
200.0
144.3
177.5
185.7
219.8
89.5
159.2
183.0
134.4
132.6
152.8
215.2
146.5
193.7
144.8
156.4 143.7 154.1 156.2 162.0 154.6 142.1
180.0
186.0
213.0
110.0
162.9
186.9
136.4
136.5
163.3
225.0
145.5
203.6
151.3
168.7
172.3
200.6
92.3
157.3
173.9
122.5
138.0
148.7
216.3
142.9
226.3
151.0
174.1
170.1
182.8
134.2
168.7
183.4
137.2
153.0
156.7
218.2
144.8
236.7
153.3
182.9
189.9
208.3
138.0
169.0
186.0
133.7
155.0
152.7
222.0
141.8
236.2
156.2
190.9
205.7
223.0
157.2
175.2
186.3
137.5
150.1
152.4
220.2
140.7
211.1
151.2
184.5
188.2
202.1
148.9
175.6
187.6
129.3
143.6
139.8
221.2
141.3
202.6
153.9
171.2
156.1
168.8
120.3
176.8
184.6
117.5
137.2
131.7
221.6
144.4
219.8
160.9
134.3
138.6
217.8
144.2
236.9
157.9
180.3
187.5
208.7
127.7
170.3
179.9
134.2
132.2
144.8
222.9
144.3
228.0
156.8
186.3
198.5
221.7
133.0
172.1
183.6
134.6
185.9
198.0
218.1
141.3
170.5
184.1
1 3 2 .3 130.6
157.7
222.3 225.7
145.1 145.0
220.5
155.2 152.6
246.1 231.9 247.9 296.0 316.1 315.7 265.1 244.8 276.0 314.0 295.4 280.0
Equipment
Business equipment...........................
Industrial equipment.......................
Commercial equipment...................
Freight and passenger equipment. .
Farm equipment..............................
Defense equipment...........................
11.63 195.6 194.0 189.7 191.9 182.9 183.5 183.4 178.8 177.2 179.7 173.
6.85
2.42
1.76
.61
179.1
220.0
246.7
136.8
182.1
219.2
224.0
140.1
176.0
217.8
223.3
134.4
178.7
221.1
222.4
135.6
172.9
213.9
203.2
114.1
172.8
214.2
207.9
110.9
172.0
213.7
204.4
131.0
168.7
209.1
193.7
127.8
167.9
208.2
190.7
119.4
172.6 172.2 170.0
169.3 164.7 161.5 160.5 159.3
208.8 200.9 197.1 198.3 193.8
200.3 197.5 196.4 196.8 194.6
122.0 98.4 130.5 127
3.41
Materials
Durable goods materials ...................
Consumer durable...........................
Equipment........................................
Construction....................................
Metal materials n.e.c.......................
26.73 165.5 160.4 159.5 162.0 153.2 156.0 154.9 147.1
Nondurable materials .......................
25.92 183.9 188.5 185.1
Business supplies.............................
Containers....................................
General business supplies............
Nondurable materials n.e.c.............
Business fuel and power.................
Mineral fuels................................
Nonresidential utilities................
Electricity.................................
General industrial................
Commercial and other.........
Gas............................................
3.43
7.84
9.17
6.29
163.9
191.9
152.4
152.8
147.9
185.8
148.1
153.6
150.4
178.7
149.6
154.9
164.8
169.9
162.3
236.6
158.5
178.4
154.1
154.8
142.7
172.9
150.1
138.9
147.6
170.6
155.7
142.9
140.7
171.4
153.4
144.3
111.5
166.2
149.4
139.5
143.6 146.9 146.6 150.5 153.4 153.6
114.5
164.3
142.7
134.8
146.0
166.1
137.7
137.0
186.6 177.8 186.2 188.6 190.5 188.0 182.9
165.1
171.1
162.1
238.5
154.7
157.9
153.1
226.0
165.0
177.6
158.8
231.1
165.2
173.1
161.3
235.8
167.4
176.8
162.7
241.6
164.4
164.2
164.5
240.9
156.6
148.2
160.
232.9
156.6
164.4
134.6
143.2
155.3
162.3
138.8
150.2
155.1
163.0
144.3
153.7
153.0
158.5
148.9
156.2
184.4 187.3 187.6 189.4
158.1
165.7
154.3
234.8
9.11
3.03
6.07
7.40
166.6
168.6
165.5
237.8
169.3
172.2
167.8
245.7
9.41
6.07
2.86
2.32
1.03
1.21
.54
158.2
134.9
216.7
220.6
216.1
236.1
162.1 164.3 166.5 162.3 171.3 174.0 172.7 169.2 169.1 170.1 170.4 170.8 170.4
140.9 142.0 140. 131.1 142.6 145.7 148.5 148.0 146.8 145.9 146.5 148.0 148.6
159.4
164.2
157.1
243.0
158.1
153.9
160.2
245.3
162.8
162.8
162.8
246.1
220.7 227.3 239.0 247.1 253.4 252.9 240.4 226.4 229.4 235.3 234.1 231.8
217.7 222.9 228.4 226.1 229.9 229.2 223.5 216.3 217.3 218.7 219.3 220.0
235.1 243.1 261.0 279.0 288.1 287.2 267.5 246.8 251.6 261.8 259.0 254.0
Supplementary groups of
consumer goods
Automotive and home goods.
Apparel and staples...............
For N ote see p. A-61.
7.
24.51
179.5 175.5 176.0 181.2 153.5 150.4 163.2 161.3 156.9 161.8 174.3 181
185.5 182.7
157.1 155.9 155.3 160.8 158.9 170.0 169.6 164.9 158.4 155.5 159.9 160.4 160.5
J U N E 1971 □ INDUSTRIAL PRODUCTION: N.S.A.
A 61
INDUSTRY GROUPINGS
(1957-59= 100)
Grouping
Total index.................................
Manufacturing, total .......................
Durable......................................
Nondurable................................
Mining............................................
Utilities...........................................
1957-59 1969
pro
aver
por
age®
tion
1970
Apr.
May
June
July
Aug.
1971
Sept.
Oct.
Nov.
Dec.
Jan. Feb. r Mar . r
100.00 172.8 170.6 169.1 172.1 163.6 169.1 170.2 166.5 162.9 162.5 164.2 165.9 167.1
Apr.
166.6
86.45 173.9 171.0 168.9 171.8 161.6 166.4 167.6 164.5 161.2 160.0 161.4 163.8 165.4 165.0
48.07
38.38
8.23
5.32
176.5 170.5 169.4 171.3 159.8 161.0 162.3 156.3 153.3 156.7 157.2 159.0 161.0 159.5
170.6 171.7 168.4 172.3 163.8 173.2 174.2 174.
171.1 164.2 166.6 169.8 170.8 171.9
130.2 135.0 137.9 137.6 129.2 138.2 140.1 141. 140.5 139.4 137.4 136.3 137.8 139.8
221.2
Durable manufacture
Primary and fabricated metals . . . .
Primary metals...............................
Iron and steel.............................
Nonferrous metals and products
Fabricated metal products............
Structural metal parts...............
Machinery and related products . . .
Machinery.......................................
Nonelectrical machinery............
Electrical machinery..................
Transportation equipment............
Motor vehicles and parts..........
Aircraft and other equipment. . ,
Instruments and related products.
Ordnance and accessories..............
12.32 162.5 158.7 158.3 159.9 148.0 153.9 155.1 146.7 142.8 145.8 148.5 152.7 156.3 157.6
6.95
5.45
1.50
5.37
2.86
149.1
140.3
181.1
179.8
173.3
147.9
138.3
183.1
172.6
165.1
149.0
139.4
183.6
170.5
163.4
147.6
138.8
179.7
175.7
167.7
131.1
124.5
155.3
169.9
162.9
137.2
128.7
168.0
175.3
168.1
137.9
128.2
173.3
177.3
169.2
132.2
123.3
164.6
165.4
162.7
128.0
118.4
162.9
162.0
160.6
131.2
120.5
170.0
164.8
160.5
140.4
132.6
168.8
159.1
160.0
27.98 188.4 181.0 179.5 181.4 168.2 165.5 167.7 160.8 158.9 164.6 166.1
14.80
8.43
6.37
10.19
4.68
5.26
1.71
1.28
195.7
194.6
197.2
174.6
166.9
177.8
194.4
197.3
197.4
197.2
157.0
155.4
154.9
192.5
192.1
191.8
192.4
161.2
167.7
152.4
189.4
193.6
190.4
197.8
164.6
176.4
151.2
189.8
185.3
182.4
189.2
142.0
134.0
146.1
185.1
184.5
176.2
195.6
136.1
123.0
144.5
184.8
187.0
177.7
199.3
139.0
128.4
145.1
183.8
184.2
172.9
199.1
124.8
100.8
141.8
183.3
180.2
171.0
192.5
125.5
102.5
141.6
183.2
177.7
171.6
185.8
145.2
144.8
142.1
182.7
175.9
167.9
186.5
152.7
166.7
137.5
179.2
147.4
139.5
176.0
159.7
158.5
152.0
145.2
176.8
161.8
161.9
154.0
147.6
177.2
162.3
160.5
166.4 166.3 162.9
176.7
170.5
184.9
153.3
174.4
131.4
176.8
178.6
172.4
186.8
152.2
172.7
129.8
177.1
175.8
168.1
186.1
146.2
164.4
125.1
176.0
Clay , glass, and lumber..................
Clay, glass, and stone products...
Lumber and products....................
4.72 142.5 139.9 140.7 143.3 139.9 146.9 143.2 143.0 134.8 128.2 123.5 129.9 135.6 140.5
Furniture and miscellaneous...........
3.05 176.7 169.0 165.2 168.5 161.9 170.9 170.9 173.9 173.1
Furniture and fixtures....................
Miscellaneous manufactures.........
2.99 156.0 154.0 155.0 159.7 157.0 161.8 157.2 157.6 150.0 144.5 134.7 139.1 1 4 6 .4 153.9
1.73 119.1 115.5 116.1 115.1 110.5 121.1 119.0 117.
108.6 100.1 104.1 114.0 116.9
171.7 162.7 162.1
166.1 165.1
1.54 186.9 174.7 169.2 173.5 168.2 177.7 176.8 180.5 179.6 181.1 172.8 171.3 174.9 172.6
1.51 166.4 163.2 161.1 163.4 155.5 163.9 164.8 167.2 166.4 162.2 152.5 152.7 157.2 157.5
Nondurable manufactures
Textile mill products.....................
Apparel products...........................
Leather and products....................
2.90 154.2 154.3 151.5 147.4 135.9 146.8 148.6 151.1 149.5 138.9 148.4 155.5 157.3 158.8
3.59 149.2 145.7 142.5 145.3 128.2 144.9 142.1 146.3 138.2 126.1 138.9 148.3 148.0
1.11 101.9 98.2 98.2 98.8 86.0 99.7 96.0 99.6 91.2 87.9 94.2 87.9 86.4
7.60 144.2 142.0 139.5 139.3 124.9 139.0 137.
141.3 135.6 125.4 136.0 142.2 142.5 141.9
Paper and printing ..........................
8.17 164.4 168.7 164.2 162.8 153.1
165.0 164.5 156.0 157.1 161.3 160.8 163.5
Textiles , apparel, and leather ........
160.8 160.1
Chemicals, petroleum , and rubber..
Chemicals and products................
Industrial chemicals...................
Petroleum products.......................
Rubber and plastics products.......
3.43 175.6 182.5 175.4 174.7 159.1 174.6 168.7 178.9 174.3 155.9 170.0 176.0
4.74 156.3 158.8 156.1 154.3 148.8 150.8 153.8 155.0 157.4 156.1 147.8 150.8
1.53 142.7 148.4 145.9 138.2 125.3 126.9 138.1 144.3 150.9 140.0 123.4 133.7
11.54 222.6 228.3 220.1 229.2 219.3 223.3 227.5 226.6 225.9 222.1 222.1 226.8
7.58 239.0 248.4 241.4 248.5 237.5 239.3 244.6 245.0 244.8 241.4 240.2 247.2
3.84 283.0 295.0 281.3 287.2 276.0 276.5 284.8 288.5 289.7 284.5 279.2 289.6
1.97 143.8 142.0 145.0 152.2 153.2 155.3 156.3 151.6 152.2 152.3 148.1 149.1
1.99 238.7 237.0 213.3 232.4 215.4 229.8 232.5 231.1 226.6 217.9 226.5 226.4
Foods, beverages , and tobacco .......
11.07 139.0 135.2 137.5 142.7 140.4 153.6 154.2 151.0 143.3 136.7 136.7 135.7 138.5 137.8
Paper and products.......................
Printing and publishing.................
Newspapers.................................
Foods and beverages.....................
Food manufactures....................
Beverages....................................
Tobacco products..........................
10.25
8.64
1.61
.82
140.7
136.7
161.9
117.3
136.1
130.6
165.4
124.8
138.7
133.2
168.5
122.0
143.8
136.9
180.7
129.1
142.7
138.1
167.3
112.0
155.4
152.8
169.4
131
156.3
154.6
165.4
127.7
152.2
150.6
161.1
135.1
171.0 176.6
153.4 154.1
137.5 142.7
227.5 230.2
246.8 250.4
287.9
147.6 149.0
233.2
144.9 139.7 137.3 136.6 139.7 139.9
144.3 138.0 135.5 133.2 133.1 131.8
147.8 148.3 148.5 154.8 174.8
124.0 99.1 129.2 125.1 124.2
Mining
Coal, oil, and g a s ...........................
6.80 127.4 132.4 134.0 132.7 122.9 133.5 136.5 139.7 139.2 139.2 138.5 137.2 138.1 138.5
Metal stone, and earth minerals...
Metal mining.................................
Stone and earth minerals..............
1.43 143.5 146.9 156.2 161.0 159.0 160.2 157.2 152.1
Coal................................................
Crude oil and natural gas.............
Oil and gas extraction................
Crude oil.................................
Gas and gas liquids................
Oil and gas drilling....................
1.16
5.64
4.91
4.25
.66
.73
117.7
129.3
139.0
132.0
184.0
64.2
123.9
134.2
144.9
137.4
135.5
133.7
143.5
136.5
127.2 94.7 135.2 135.3
133.8 128.8 133.2 136.8
144.0 139.8 144.4 148.1
136.1 131.7 137.0 141.2
139.6
139.7
150.6
143.6
132.5
140.6
151.7
143.8
127.8
141.5
151.3
142.4
133.6
139.5
148.8
139.4
131.1
138.5
150.1
140.5
139.2
137.9
150.1
141.4
143.5
137.4
149.8
142.1
146.5 140.6 132.0 131.5 136.3 145.9
.61 142.0 151.2 167.0 169.8 161.5 164.5 163.3 155.3 148.9 143.7 141.1 1 4 4 .0 142.5 148.1
.82 144.7 143.8 148.1 154.4 157.2 157.0 152.6 149.8 144.8 138.2 125.3 122.3 131.8 144.4
Utilities
Electric............................................
Gas..................................................
4.04 233.0 231.6 229.2 242.8 268.0 280.2 279.7 253.9 234.2 249.3 268.8 263.6 252.3
1.28 74.1
N o t e .—Published groupings include some series and subtotals not
shown separately. A description and historical data are available in
Industrial Production— 1957-59 Base. Figures for individual series and
subtotals (N.S.A.) are published in the monthly Business Indexes release.
A 62
BUSINESS ACTIVITY; C O N S TR U C TIO N □ J U N E 1971
SELECTED BUSINESS INDEXES
(1957-59= 100, except as noted)
Manu
facturing 2
Industrial production
Major market groupings
Period
Major industry
groupings
Final products
Total
Ca
pacity Con Nonagriculutiliza struc
tural
tion
tion
em
in mfg. con
Em
ploy
(per
ploy
tracts
ment—
cent)
Total1 ment
Mate
Con
rials
Total sumer Equip
Mfg.
goods ment
Prices 4
Pay
rolls
Total
retail
sales3
Whole
sale
Con
sumer com
(1967 modity
= 100) (1967
= 100)
Min
ing
Util
ities
85.2
92.7
86.3
90.5
92.9
90.2
61.2
66.8
71.8
91.3
94.2
83.5
93.0
95.6
93.3
106.1
111.6
101.8
84.5
93.6
85.4
79
83
82
79.5
80.1
80.5
88.6
87.4
87.6
1955.,
1956.,
1957.,
1958.,
1959.,
96.6 93.9 93.3 95.0 99.0 97.3
99.9 98.1 95.5 103.7 101.6 100.2
100.7 99.4 97.0 104.6 101.9 100.8
93.7 94.8 96.4 91.3 92.7 93.2
105.6 105.7 106.6 104.1 105.4 106.0
99.2
104.8
104.6
95.6
99.7
80.2
87.9
93.9
98.1
108.0
90.0
87.7
83.6
74.0
81.5
96.5
99.8
100.7
97.8
101.5
105.5
106.7
104.7
95.2
100.1
94.8
100.2
101.4
93.5
105.1
89
92
97
98
105
80.2
81.4
84.3
86.6
87.3
87.8
90.7
93.3
94.6
94.8
1960.,
1961.,
1962.,
1963.,
1964.,
108.7
109.7
118.3
124.3
132.3
109.9
111.2
119.7
124.9
131.8
111.0
112.6
119.7
125.2
131.7
107.6
108.3
119.6
124.2
132.0
107.6
108.4
117.0
123.7
132.8
108.9
109.6
118.7
124.9
133.1
101.6
102.6
105.0
107.9
111.5
115.6
122.3
131.4
140.0
151.3
80.6
78.5
82.1
83.3
85.7
103.3
102.9
105.9
108.0
111.1
99.9
95.9
99.1
99.7
101.5
106.7
105.4
113.8
117.9
124.3
106
107
115
120
128
88.7
89.6
90.6
91.7
92.9
94.9
94.5
94.8
94.5
94.7
1965.
1966.
1967.
1968.
1969.
1970.
143.4
156.3
158.1
165.5
172.8
142.5
155.5
158.3
165.1
170.8
140.3
147.5
148.5
156.9
162.5
147.0
172.6
179.4
182.6
188.6
144.2
157.0
157.8
165.8
174.6
145.0
158.6
159.7
166.9
173.9
114.8
120.5
123.8
126.6
130.2
160.9
173.9
184.9
202.5
221.2
88.5 93.2
90.5 94.8
85.3 100.0
84.5 113.2
123.7
115.8
121.8
125.4
129.3
133.8
134.5
106.7
113.5
113.6
115.2
117.3
111.5
136.6
151.7
155.1
167.9
180.8
177.4
138
148
153
165
171
94.5
97.2
100.0
104.2
109.8
116.3
96.6
99.8
100.0
102.5
106.5
110.4
1970—Apr..
May.
June.
July..
Aug..
Sept..
Oct...
N ov..
Dec..
170.2
169.0
168.8
169.2
168.8
165.8
162.3
161.5
164.4
168.5
167.7
167.1
166.8
166.5
163.1
159.8
159.4
162.9
163.2
163.2
162.8
163.5
163.5
160.1
157.0
157.0
162.4
179.0
177.3
176.3
173.7
173.0
169.6
165.9
164.5
164.2
171.9
170.4
171.2
171.4
171.2
168 9
164
163.8
166.0
170.0
168.1
168.0
168.5
167.7
163.7
159.4
159.0
162.1
133.9
134.8
135.5
133.8
137.1
138.9
139.9
139.4
138.8
233.8
234.9
235.4
236.3
235.8
242.8
244.8
238.7
240.0
130.0
78.0 110.0
120.0
116.0
76.2 135.0
118.0
115.0
72.4 130.0
132.0
135.5
134.9
134.5
134.4
134.1
134.3
133.6
133.4
133.9
114.2
112.6
112.3
111.9
110.9
111.1
106.4
105.5
108.1
179.3
176.7
178.6
178.1
179.0
178.4
168.8
168.5
176.8
179
178
178
180
180
181
179
177
179
115.2
115.7
116.3
116.7
116.9
117.5
118.1
118.5
119.1
109.9
110.1
110.3
110.9
110.5
111.0
111.0
110.9
111.0
1971—J a n ....
F eb....
M ar.. .
Apr—
May2*.,
165.6
165.2
165.5
r166.2
167.3
163.4
163.0
163.4
'•163.4
164.3
164.5
164.6
166.2
r167.1
168.3
161.3
159.4
157.3
r155.6
156.0
168.0
167.8
168.0
'•169.3
170.3
163.6
163.1
163.5
r163.9
165.1
137.9 241.5
136.3 245.2
138.7 242.2
'•138.8 r246.0
137.1 248.0
117.0
'73.2 126.0
141.0
161.0
134.5
134.4
134.5
134.6
134.8
107.9
107.5
r107.1
'•107.3
107.5
179.1
177.6
rl 78.8
'•178.2
180.0
182
185
'189
'191
189
119.2
119.4
119.8
120.2
111.8
112.8
113.0
113.3
84.3
91.3
85.8
1952.,
1953.,
1954.,
79.5 94.1
85.0 100.5
84.3 88.9
84.3
89.9
85.7
84.3
92.6
85.9
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.
N o te . —All series: Data are seasonally adjusted unless otherwise noted.
86.1
89.4
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Department of Commerce.
Construction contracts: F. W. Dodge Co. monthly index of dollar
value of total construction contracts, including residential, nonresidential,
and heavy engineering; does not include data for Alaska and Hawaii.
Employment and payrolls: Based on Bureau of Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau of Labor Statistics data.
CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions of dollars, except as noted)
1970
Type of ownership and
type of construction
1968
1971
1969
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Total construction 1.........................
61,732 67,425 6,757 5,417 6,552 6,177 6,229 5,398 5,453 5,144 4,974 4,383 4,993 6,386 7,743
By type of ownership:
Public........................................
Private 1....................................
19,597 22,656 1,791 1,695 2,814 2,312 2,078 1,869 2,023 1,937 1,688 1,464 1,578 1,722 2,074
42,135 44,769 4,966 3,722 3,738 3,865 4,151 3,529 3,430 3,208 3,286 2,919 3,415 4,663 5,669
By type of construction:
Residential building 1..............
...........
Nonbuilding.............................
24,838 25,219 2,466 2,122 2,347 2,347 2,349 2,176 2,301 1,947 2,045 1,631 1,819 2,729
22,512 25,667 2,412 1 Nonresidential
749 2,469 2,469
building
2,331 1,943 1,862 1,701 1,693 1,711 1,654 2,199
14,382 16,539 1,877 1 *544 1,361 1,361 1,549 1,278 1,289 1,497 1,235 1,041 1,520 1,458
Private housing units authorized...
(In thousands, S.A., A.R.)
1,330
1,299 1,263 1,321 1,306 1,275 1,326 1,371 1,521 1,487 1,768 1,635 '1,563 1,627 1,618
N o te . —Dollar value of construction contracts as reported by the F. W.
1 Because of improved collection procedures, data for 1-family homes
beginning Jan. 1968 are not strictly comparable with those for earlier
Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly
periods. To improve comparability, earlier levels may be raised by ap
data exceed annual totals because adjustments—negative—are made into
accumulated monthly data after original figures have been published.
proximately 3 per cent for total and private construction, in each case,
and by 8 per cent for residential building.
Private housing units authorized are Census Bureau series for 13,000
reporting areas with local building permit systems.
J U N E 1971 □ C O N S T R U C TIO N
A 63
VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions o f dollars)
Private
Public
Nonresidential
Period
Total
Total
Non
farm
resi
dential
Total
Buildings
Indus
trial
Com
mercial
Other
build
ings 1
Other
Total
Mili
tary
High
way
Conser
vation
&
Other 2
develop
ment
1962 3..........
19634..........
196 4
59,667
63,423
66,200
41,798
44,057
45,810
24,292
26,187
26,258
17.506
17,870
19,552
2,842
2,906
3,565
5,144
4,995
5,396
3,631
3,745
3,994
5,889
6,224
6,597
17,869
19,366
20,390
1,266
1,189
938
6,365
7,084
7,133
1,524
1,690
1,729
8,714
9,403
10,590
196
196
196
196
196
197
72,319
75,120
76,160
84,692
90,866
91,266
50,253
51,120
50,587
56,996
62,806
63,079
26,268
23,971
23,736
28,823
30,603
29.275
23,985
27,149
26,851
28,173
32,203
33,806
5,118
6,679
6,131
5,594
6,373
5,930
6,739
6,879
6,982
8,333
10,136
10,521
4,735
5,037
4,993
4,873
5,521
5,841
7,393
8,554
8,745
9,373
10,170
11,459
22,066
24,000
25,573
27,696
28,060
28,297
852
769
721
824
949
782
7,550
8,355
8,538
9,295
9,276
2,019
2.195
2.196
2,046
1,796
11,645
12,681
14,511
15,531
16,039
90,721
89,702
90,063
89,084
89,987
91,012
92,348
92,891
r99,114
63,365
62,656
61,652
60,675
61,493
62,725
64,488
64,549
66,904
29,829
29,150
27,698
27,014
27,536
28,768
30,531
31,791
33.275
33,777
33.506
33,954
33,661
33.957
33.957
33.957
32,758
33,689
6,230
5,864
5,892
5,915
6,241
5,741
5,983
5,752
5,358
10,577
10,553
10,903
10,027
10,188
10,375
10,210
9,278
10,372
5,857
5,975
5,878
5,932
5,959
5,686
5,572
5,575
5.739
11.113 27,115
11.114 27,046
11,281 28,411
11,787 28,409
11,569 28,494
12,155 28,287
12,192 27,860
12,153 28,342
12,160 '32,210
746
868
830
592
845
738
866
701
768
'99,956
102,558
102,238
104,496
69,858
70,845
72,197
73,735
34,377
35,648
36,923
38,077
35,481
35,197
35,274
35,658
5,904
5,596
5,244
5,869
11,558
11,846
12,169
11,837
6,083
5.740
5,637
5,884
11,936 '30,098
12,015 31,713
12,224 30,041
12,068 30,761
1,016
924
882
844
5
6
7
8
9
0
1970—Apr..
M ay.
June.
Ju ly ..
A ug..
Sept..
Oct...
N o v ..
Dec.r
1971 —J a n ...
Feb.'
M ar.f
Apr..
1 Includes religious, educational, hospital, institutional, and other build
ings.
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 HOUSING UNITS
(In thousands)
Units started
Private (S.A., A.R.)
Period
Region
Type of structure
Total
North North South
Central
east
West
5- or
12- to 4- morefamily family family
Total
Mobile
home
ship
ments
(N.S.A.;
Government
underwritten
(N.S.A.)
(N.S.A.)
Private Public
Total
FHA
VA
1962.........................
1963.........................
1964.........................
1,463
1,610
1,529
264
261
253
290
328
339
531
591
582
378
431
355
991
1,021
972
108
450
1,492
1,642
1,562
1,463
1,610
1,529
30
32
32
339
292
264
261
221
205
78
71
59
118
151
191
1965.........................
1966.........................
1967.........................
1968.........................
1969.........................
1970.........................
1,473
1,165
1,292
1,508
1,467
1,429
270
207
215
227
206
217
362
288
337
369
349
291
575
473
520
619
588
611
266
198
220
294
323
310
964
779
844
900
810
811
87
61
72
81
87
84.7
422
325
376
527
571
534
1,510
1,196
1,322
1,548
1,500
1,467
1,473
1,165
1,292
1,508
1,467
1,434
37
31
30
40
33
33
246
195
232
283
'288
479
197
158
180
227
'237
418
49
37
53
56
'51
61
216
217
240
318
413
401
1970—Apr................
May..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec...............
1,224
1,242
1,393
1,603
1,425
1,509
1,583
1,693
2,054
222
190
176
264
181
198
227
262
234
255
228
311
335
298
262
331
355
427
524
566
592
652
640
673
649
737
916
223
258
314
352
306
376
376
339
477
697
728
835
827
838
881
890
934
1,240
57
81
78
95
94
122
87
111
102
470
433
480
681
493
506
606
648
712
130
127
141
143
132
133
143
128
124
128
125
135
141
129
131
141
127
121
2
2
6
2
3
2
2
1
3
37
42
46
49
40
40
46
39
69
32
37
41
43
34
34
40
34
63
5
5
5
6
6
6
6
5
6
40
33
35
37
38
41
41
30
27
1971—Jan................
F e b .'............
Mar...............
Apr.*............
1,725
1,754
1,950
1,903
238
238
255
246
320
292
439
454
724
745
800
812
435
479
456
391
946
985
1,045
1,081
110
110
121
101
669
659
784
721
115
105
168
203
111
102
167
200
4
3
1
3
37
32
41
53
32
27
33
45
5
5
8
8
25
28
36
43
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
471
589
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 64
EM PLOYM ENT □ JU N E 1971
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
rate1
(per cent;
S.A.)
Employed2
Total
Total
In nonagri
cultural
industries
In
agriculture
1965..........................
1966..........................
19673........................
1968..........................
1969..........................
1970..........................
129,236
131,180
133,319
135,562
137,841
140,182
52,058
52,288
52,527
53,291
53,602
54,280
77,178
78,893
80,793
82,272
84,239
85,903
74,455
75,770
77,347
78,737
80,733
82,715
71,088
72,895
74,372
75,920
77,902
78,627
66,726
68,915
70,527
72,103
74,296
75,165
4,361
3,979
3,844
3,817
3,606
3,462
3,366
2,875
2,975
2,817
2,831
4,088
4.5
3.8
3.8
3.6
3.5
4.9
1970—May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov...............
Dec................
139,884
140,046
140,259
140,468
140,675
140,886
141,091
141,301
54,915
52,816
52,304
53,220
55,019
54,631
54,705
55,137
85,849
85,392
85,865
85,904
86,084
86,379
86,512
86,622
82,621
82,213
82,711
82,770
82,975
83,300
83,473
83,609
78,601
78,299
78,574
78,508
78,479
78,691
78,550
78,463
75,031
74,763
75,066
75,073
75,043
75,398
75,197
75,055
3,570
3,536
3,508
3,435
3,436
3,293
3,353
3,408
4,020
3,914
4,137
4,262
4,496
4,609
4,923
5,146
4.9
4.8
5.0
5.1
5.4
5.5
5.9
6.2
1971—Jan.................
Feb................
Mar................
141,500
141,670
141,885
142,088
142,285
55,872
56,017
56,286
56,308
56,331
86,873
86,334
86,405
86,665
87,028
83,897
83,384
83,475
83,783
84,178
78,864
78,537
78,475
78,698
78,961
75,451
75,208
75,079
75,140
75,503
3,413
3,329
3,396
3,558
3,458
5,033
4,847
5,000
5,085
5,217
6.0
5.8
6.0
6.1
6.2
May...............
1 Per cent of civilian labor force.
2 Includes self-employed, unpaid family, and domestic service workers.
3 Beginning 1967, data not strictly comparable with previous data.
Description of changes available from Bureau of Labor Statistics.
N ote.—Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. Monthly data relate
to the calendar week that contains the 12th day; annual data are averages
of monthly figures.
EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands of persons)
Contract
construc
tion
Period
Total
Manufac
turing
1965.........................................................
60,815
63,955
65,857
67,915
70,274
70,664
18,062
19,214
19,447
19,781
20,169
19,393
632
627
613
606
619
622
3,186
3,275
3,208
3,285
3,437
3,347
1970—Apr...............................................
May..............................................
June..............................................
July..............................................
Aug..............................................
Sept..............................................
Oct................................................
Nov..............................................
Dec...............................................
71,149
70,839
70,629
70,587
70,414
70,531
70,182
70,085
70,303
19,795
19,572
19,477
19,402
19,271
19,285
18,684
18,538
18,842
622
620
620
618
619
621
621
625
625
1971—Jan................................................
Feb...............................................
Mar..............................................
Apr.*............................................
May*............................................
70,652
70,590
70,659
70,696
70,826
18,807
18,728
18,672
18,668
18,698
1970—Apr...............................................
May..............................................
June..............................................
July..............................................
Aug..............................................
Sept..............................................
Oct...............................................
Nov..............................................
Dec...............................................
70,758
70,780
71,385
70,602
70,527
70,922
70,692
70,644
71,234
1971—Jan................................................
Feb...............................................
Mar..............................................
Apr.*............................................
May*............................................
69,622
69,533
69,875
70,356
70,775
1967.........................................................
1968.........................................................
1969.........................................................
1970.........................................................
Transporta
tion & pub
lic utilities
Trade
Finance
Service
Govern
ment
4,036
4,151
4,261
4,310
4,431
4,498
12,716
13,245
13,606
14,084
14,645
14,950
3,023
3,100
3,225
3,382
3,557
3,679
9,087
9,551
10,099
10,623
11,211
11,577
10,074
10,792
11,398
11,845
12,204
12,597
3,426
3,351
3,324
3,314
3,305
3,262
3,278
3,303
3,319
4,468
4,478
4,511
4,539
4,520
4,511
4,509
4,493
4,437
14,991
14,968
14,927
14,933
14,912
14,961
15,011
14,945
14,851
3,673
3,677
3,679
3,676
3,670
3,684
3,696
3,711
3,723
11,564
11,572
11,532
11,514
11,521
11,622
11,665
11,695
11,727
12,610
12,601
12,559
12,591
12,596
12,585
12,718
12,775
12,779
625
623
624
623
625
3,241
3,198
3,254
3,291
3,271
4,499
4,521
4,516
4,486
4,498
15,133
15,141
15,151
15,155
15,232
3,746
3,745
3,753
3,766
3,784
11,778
11,785
11,803
11,798
11,785
12,823
12,849
12,886
12,909
12,933
19,627
19,432
19,627
19,325
19,446
19,512
18,850
18,645
18,864
616
620
635
635
636
628
622
623
621
3,286
3,344
3,504
3,572
3,606
3,500
3,471
3,379
3,226
4,432
4,469
4,561
4,593
4,574
4,561
4,527
4,515
4,446
14,818
14,878
14,994
14,924
14,869
14,936
15,038
15,191
15,744
3,658
3,670
3,708
3,738
3,732
3,695
3,689
3,697
3,704
11,564
11,641
11,717
11,698
11,648
11,634
11,677
11,660
11,645
12,757
12,726
12,639
12,117
12,016
12,456
12,818
12,934
12,984
18,622
18,568
18,528
18,506
18,562
611
606
608
617
625
2,910
2,833
2,955
3,156
3,264
4,427
4,444
4,457
4,450
4,489
14,899
14,757
14,831
15,015
15,140
3,701
3,708
3,727
3,751
3,776
11,554
11,608
11,697
11,798
11,856
12,898
13,009
13,072
13,063
13,063
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 pe
riod that includes the 12th of the month. Proprietors, self-employed
persons, domestic servants, unpaid family workers, and members of
the Armed Forces are excluded.
Data on total and government employment have been revised back
to 1964 due to adjustment of State and local government series to
Oct. 1967 Census of Governments.
Beginning with 1968, series has been adjusted to Mar. 1969 bench
mark.
J U N E 1971 □ EMPLOYMENT AN D EARNINGS
A 65
PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES
(In thousands of persons)
Seasonally adjusted1
Industry group
1970
Not seasonally adjusted1
1971
1970
1971
May
Mar.
Apr.p
MayP
May
Mar.
Apr.p
May**
14,180
13,496
13,518
13,541
14,061
13,372
13,374
13,430
Durable goods..................................................................
Ordnance and accessories......................................
Lumber and wood products..................................
Furniture and fixtures............................................
Stone, clay, and glass products.............................
Primary metal industries........................................
8,186
141
501
375
506
1,037
7,592
102
496
370
493
996
7,607
99
495
372
494
995
7,629
100
499
377
495
996
8,164
139
499
371
506
1,047
7,563
102
483
368
480
998
7,575
99
485
368
490
1,003
7,609
98
497
372
495
1,006
Fabricated metal products.....................................
Machinery...............................................................
Electrical equipment and supplies.........................
Transportation equipment.....................................
Instruments and related products.........................
Miscellaneous manufacturing industries...............
1,060
1,340
1,294
1,317
286
329
989
1,170
1,179
1,226
255
316
1,020
1,160
1,176
1,226
255
315
1,021
1,155
1,191
1,220
257
318
1,054
1,343
1,274
1,322
284
325
982
1,181
1,171
1,239
255
304
1,012
1,168
1,161
1,228
254
307
1,015
1,157
1,173
1,225
256
315
Nondurable goods............................................................
Food and kindred products...................................
Tobacco manufactures...........................................
Textile-mill products...............................................
Apparel and related products................................
Paper and allied products......................................
5,994
1,216
68
852
1,206
551
5,904
1,197
61
826
1,212
530
5,911
1,191
63
826
1,219
531
5,912
1,178
62
828
1,222
529
5,897 .
1,150
58
849
1,202
546
5,809
1,117
56
823
1,219
524
5,799
1,113
54
823
1,208
526
5,821
1,115
53
825
1,219
524
Printing, publishing, and allied industries............
Chemicals and allied products...............................
Petroleum refining and related industries..............
Rubber and misc. plastic products.........................
Leather and leather products.................................
681
606
118
412
284
670
591
118
431
268
667
591
117
433
273
669
595
117
441
271
669
592
114
427
268
667
595
115
429
269
667
596
117
436
269
1 Data adjusted to 1969 benchmark.
678
607
118
408
281
N o t e .— Bureau of Labor Statistics; data cover production and related
workers only (full- and part-time) who worked during, or received pay for,
the pay period that includes the 12th of the month.
HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES
Average hours worked1
(per week; S.A.)
Industry group
1970
Average weekly earnings1
(dollars per week; N.S.A.)
1971
May
Mar.
Apr.*>
MayP
39.8
39.9
39.7
39.9
Mar.
Apr.P
MayP
1971
May
Mar.
Apr.P
Mayp
3.34
3.52
3.53
3.55
143.07
146.47
117.09
105.88
140.27
157.56
150.02
157.35
123.11
111.25
147.55
170.97
153.09
160.09
126.77
114.34
151.01
173.46
3.55
3.59
2.92
2.75
3.38
3.90
3.75
3.77
3.06
2.85
3.57
4.13
3.76
3.81
3.07
2.86
3.59
4.17
3.78
3.83
3.13
2.88
3.63
4.20
40.4
40.4
40.0
40.5
39.9
38.8
143.26
154.95
129.49
164.02
132.00
108.47
146.40
159.17
137.76
183.40
137.76
114.07
146.89
158.00
136.72
175.08
137.46
113.58
156.26
159.98
139.65
180.67
139.30
113.78
3.52
3.77
3.27
4.06
3.30
2.81
3.66
3.93
3.47
4.43
3.47
2.94
3.70
3.95
3.47
4.41
3.48
2.95
3.71
3.96
3.50
4.45
3.50
2.94
39.2
40.4
38.9
40.6
35.0
42.2
39.3
40.4
39.0
40.9
35.1
42.1
118.95
127.98
110.03
96.47
82.84
142.12
124.87
133.27
114.45
102.75
87.79
149.76
125.32
134.19
120.64
101.75
85.85
150.90
127.01
135.07
125.39
104.86
86.70
152.82
3.05
3.16
2.99
2.43
2.36
3.40
3.21
3.34
3.11
2.55
2.48
3.60
3.23
3.38
3.20
2.55
2.46
3.61
3.24
3.36
3.24
2.57
2.47
3.63
37.5
41.7
42.0
40.3
38.3
37.7
41.7
42.4
40.4
38.1
145.89
151.42
181.90
123.29
93.38
153.38
158.98
187.26
132.47
96.09
154.05
162.15
193.31
133.27
95.98
156.79
161.77
195.57
135.41
98.16
3.88
3.64
4.25
3.09
2.49
4.09
3.84
4.48
3.32
2.59
4.13
3.87
4.57
3.34
2.58
4.17
3.87
4.58
3.36
2.59
40.3
40.8
39.7
38.8
41.3
40.2
40.5
42.1
40.0
39.7
41.8
40.7
40.1
41.6
40.1
39.5
41.2
40.7
40.5
41.8
40.1
40.1
41.4
41.1
Fabricated metal products.........................
Machinery...................................................
Electrical equipment and supplies.............
Transportation equipment.........................
Instruments and related products.............
Miscellaneous manufacturing industries...
40.6
41.1
39.7
40.3
40.1
38.7
40.3
40.2
39.8
41.9
39.7
38.8
40.0
40.0
39.8
40.2
39.7
38.7
Von durable goods...............................................
Food and kindred products.......................
Tobacco manufactures...............................
Textile-mill products..................................
Apparel and related products...................
Paper and allied products..........................
39.1
40.7
37.1
39.8
35.1
41.8
39.1
40.4
37.9
40.3
35.2
41.8
Printing, publishing, and allied industries.
Chemicals and allied products...................
Petroleum refining and related industries .
Rubber and misc. plastic products............
Leather and leather products.....................
37.7
41.5
42.5
40.0
37.7
37.5
41.4
42.2
40.2
37.4
May
1970
151.50
157.59
122.40
112.29
147.44
168.50
Durable goods.....................................................
Ordnance and accessories..........................
Lumber and wood products......................
Furniture and fixtures................................
Stone, clay, and glass products.................
Primary metal industries............................
1 Data adjusted to 1969 benchmark.
1971
1970
Average hourly earnings1
(dollars per hour; N.S.A.)
132.93 139.74 139.08 141.65
N o t e .—Bureau of Labor Statistics; data are for production and related
workers only.
A 66
PRICES □ J U N E 1971
CONSUMER PRICES
(1967 = 100)
Housing
Period
All
items
Food
Total
Rent
Homeownership
Health and recreation
Fuel
oil
and
coal
Gas
and
elec
tricity
40.5
48.0
81.4
79.6
1929.........................
1933..........................
1941.........................
1945.........................
51.3
38.8
44.1
53.9
48.3
30.6
38.4
50.7
53.7
59.1
76.0
54.1
57.2
58.8
1960.........................
1961.........................
1962.........................
1963..........................
1964.........................
88.7
89.6
90.6
91.7
92.9
88.0
89.1
89.9
91.2
92.4
90.2
90.9
91.7
92.7
93.8
91.7
92.9
94.0
95.0
95.9
86.3
86.9
87.9
89.0
90.8
89.2
91.0
91.5
93.2
92.7
98.6
99.4
99.4
99.4
99.4
94.5
1965.........................
1966....................... . 97.2
1967......................... 100.0
1968......................... 104.2
1969......................... 109.8
94.4
99.1
100.0
103.6
108.9
94.9
97.2
100.0
104.2
110.8
96.9
98.2
100.0
102.4
105.7
92.7
96.3
100.0
105.7
116.0
94.6
97.0
100.0
103.1
105.6
115.2
115.7
116.3
116.7
116.9
117.5
118.1
118.5
119.1
114.6
114.9
115.2
115.8
115.9
115.7
115.5
114.9
115.3
117.6
118.2
118.6
119.2
119.9
120.6
121.2
121.9
122.6
109.1
109.4
109.8
110.1
110.5
110.9
111.4
111.8
112.6
126.5
127.5
128.5
129.0
130.0
131.3
131.9
132.5
133.4
1971—Jan................. 119.2
Feb................ 119.4
Mar............... 119.8
Apr............... 120.2
115.5
115.9
117.0
117.8
122.7
122.6
122.4
122.5
112.9
113.6
113.9
114.4
133.4
132.3
131.2
130.9
1970—Apr................
M ay..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec...............
Fur Apparel Trans
nish
and
porta
ings upkeep tion
and
opera
tion
Total
Read Other
ing
goods
and
and
recrea serv
tion
ices
Med
ical
care
Per
sonal
care
37.0
42.1
41.2
55.1
47.7
62.4
49.2
56.9
48.5
36.9
44.8
61.5
44.2
47.8
93.8
93.7
93.8
94.6
95.0
89.6
90.4
90.9
91.9
92.7
89.6
90.6
92.5
93.0
94.3
85.1
86.7
88.4
90.0
91.8
79.1
81.4
83.5
85.6
87.3
90.1
90.6
92.2
93.4
94.5
87.3
89.3
91.3
92.8
95.0
87.8
88.5
89.1
90.6
92.0
99.4
99.6
100.0
100.9
102.8
95.3
97.0
100.0
104.4
109.0
93.7
96.1
100.0
105.4
111.5
95.9
97.2
100.0
103.2
107.2
93.4
96.1
100.0
105.0
110.3
89.5
93.4
100.0
106.1
113.4
95.2
97.1
100.0
104.2
109.3
95.9
97.5
100.0
104.7
108.7
94.2
97.2
100.0
104.6
109.1
108.3
108.4
108.6
109.6
110.1
111.4
112.5
113.9
114.9
106.6
106.7
106.3
106.6
107.3
107.6
108.8
109.9
110.7
112.8
113.2
113.5
113.7
113.9
114.2
114.5
115.1
115.3
115.0
115.7
116.0
115.3
115.4
117.2
118.2
119.0
119.2
111.2
112.1
112.7
113.4
112.7
113.0
115.2
116.0
116.9
114.9
115.4
116.1
116.6
117.2
117.7
118.2
118.7
119.1
119.1
119.7
120.5
121.3
122.0
122.6
122.8
123.4
124.2
112.4
112.8
112.7
113.1
113.7
114.0
114.4
114.5
115.0
111.9
112.6
113.3
113.7
114.2
114.7
115.2
116.0
116.2
114.7
115.1
115.7
116.2
116.8
117.4
118.0
118.3
118.5
116.7
117.2
117.4
117.3
111.5
112.8
113.3
113.9
115.4
115.9
116.4
117.0
117.6
118.1
118.6
119.1
117.5
117.5
117.8
118.1
119.8
120.2
120.6
121.2
124.9
125.8
126.8
127.5
115.3
115.4
115.8
116.3
117.3
117.5
117.7
118.4
118.9
119.1
119.4
119.7
N o te . —Bureau of Labor Statistics index for city wage-earners and
clerical workers.
WHOLESALE PRICES: SUMMARY
(1967 = 100)
Industrial commodities
Period
Pro
All Farm cessed
com prod
foods
modi ucts
and
ties
feeds Total
1960............................. 94.9
1961............................. 94.5
1962............................. 94.8
1963............................. 94.5
1964............................. 94.7
97.2
96.3
98.0
96.0
94.6
89.5
91.0
91.9
92.5
92.3
95.3
94.8
94.8
94.7
95.2
Ma
Tex
Rub Lum Paper, Met chin
Fuel, Chem
ery Furni
ber,
tiles, Hides,
icals,
ber,
als,
etc.
etc.
etc.
and ture,
etc.
etc. equip
etc.
etc.
etc.
etc.
ment
99.5
97.7
98.6
98.5
99.2
90.8
91.7
92.7
90.0
90.3
96.1 101.8 103.1
97.2 100.7 99.2
96.7 99.1 96.3
96.3 97.9 96.8
93.7 98.3 95.5
95.3
91.0
91.6
93.5
95.4
98.1
95.2
96.3
95.6
95.4
92.4
91.9
91.2
91.3
93.8
92.0
91.9
92.0
92.2
92.8
99.0
98.4
97.7
97.0
97.4
Nonmetallic
min
erals
Trans
porta Mis
tion cella
equip neous
ment1
97.2
97.6
97.6
97.1
97.3
93.0
93.3
93.7
94.5
95.2
96.6
99.8
100.0
102.5
106.5
98.7
105.9
100.0
102.5
108.8
95.9
95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5
97.7
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
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
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
107.3 106.0 105.9 108.6 101.0 99.9 105.4 125.2 104.2 108.5 106.4 104.9 108.1 100.7 104.9
110.1
110.3
110.9
110.5
111.0
Oct.................... 111.0
Nov................... 110.9
Dec................... 111.0
111.3
111.6
113.4
108.5
112.1
107.8
107.0
107.1
111.1
111.7
113.3
112.9
113.0
111.8
111.7
110.7
109.7
109.8
110.0
110.2
110.4
111.3
111.3
111.7
107.2
107.2
107.1
107.4
107.5
107.3
107.1
106.7
110.4
109.9
109.8
109.8
109.9
110.4
110.9
110.4
105.3
104.8
105.1
105.8
107.1
108.7
109.7
112.8
102.2
102.1
102.5
102.7
102.5
103.0
103.3
103.3
107.5
107.4
109.0
109.7
109.4
109.5
109.1
109.4
114.8
114.0
113.5
114.0
114.2
113.1
111.9
111.1
108.2
108.1
108.4
108.2
108.3
108.9
108.7
108.5
117.4
117.8
117.7
117.5
117.4
117.7
116.8
116.2
110.6
111.0
111.5
111.6
112.1
112.7
113.1
U 3.8
107.1
107.4
107.6
107.7
107.8
108.0
108.4
108.7
113.0
113.0
113.2
113.6
113.8
114.2
114.6
115.1
103.2
103.3
103.2
103.3
103.6
108.2
108.5
108.9
108.1
110.7
111.1
111.2
111.5
111.6
111.8
111.9
108.9
113.9
113.0
113.0
114.0
111.8
113.3
113.7
113.5
114.5
112.2
112.5
112.8
113.3
113.7
106.9
106.7
106.9
107.5
107.8
111.7
112.4
112.5
114.0
114.4
113.5
113.0
112.8
113.0
114.2
103.8
104.2
104.5
104.5
104.3
108.4
109.1
109.1
109.0
108.7
112.2
117.5
123.4
124.6
124.9
109.0
109.3
109.3
109.6
109.9
116.5
116.4
116.5
117.8
118.5
114.2
114.6
114.9
115.0
115.3
109.3
109.7
109.6
109.7
109.9
118.8
119.0
120.9
121.6
121.8
109.5
109.7
109.5
109.7
109.8
112.3
112.6
112.8
112.7
112.5
1965.............................
1966.............................
1967.............................
1968.............................
1969.............................
1970—M ay.................
June.................
July..................
Aug...................
1971—Jan....................
Feb...................
Mar...................
Apr...................
M ay.................
111.8
112.8
113.0
113.3
113.8
1 For transportation equipment, Dec. 1968=100.
J U N E 1971 □ PRICES
A 67
WHOLESALE PRICES: DETAIL
(1967=100)
Group
1970
1971
May
Mar.
Apr.
May
121.6
95.9
120.9
102.2
91.0
114.4
94.5
96.3
115.5
125.3
108.4
114.9
100.1
88.9
118.1
101.2
107.6
116.1
120.8
106.8
116.9
99.5
89.4
119.7
104.4
104.8
114.4
127.5
107.2
119.0
101.3
90.3
118.7
92.4
106.8
113.6
106.4
116.7
111.1
110.2
114.5
113.0
140.0
118.8
115.3
110.9
110.2
97.5
111.5
112.9
115.0
111.9
119.2
115.3
142.1
128.8
152.5
119.4
113.7
107.2
111.5
113.3
115.5
113.0
118.6
115.6
135.9
120.4
125.2
119.4
114.3
104.4
111.5
116.4
116.2
114.0
119.2
115.7
131.5
120.6
128.3
118.5
113.9
104.6
Processed foods and feeds:
Cereal and bakery products..........
Meat, poultry, and fish..................
Dairy products...............................
Processed fruits and vegetables
Sugar and confectionery................
Beverages and beverage materials.
Animal fats and oils.......................
Crude vegetable oils.......................
Refined vegetable oils.....................
Vegetable oil end products............
Miscellaneous processed foods.. . .
Manufactured animal feeds...........
105.1
100.5
103.5
110.5
102.5
106.7
107.8
94.5
97.6
112.2
103.5
106.7
108.9
94.4
98.6
112.2
103.5
118.7
109.6
93.5
99.7
112.2
104.3
113.6
108.1
109.2
112.9
106.3
105.5
108.6
116.5
107.5
121.1
111.0
116.6
107.7
121.4
113.0
116.7
107.9
Fuels and related products, and power:
Coal.......................................
Coke.......................................
Gas fuels................................
Electric power.......................
Crude petroleum...................
Petroleum products, refined.
142.2
124.6
101.8
103.5
106.0
102.0
176.0
145.9
109.4
111.1
113.2
105.9
184.0
145.9
105.9
112.3
113.2
105.3
182.8
147.6
106.9
112.6
113.2
107.4
100.8
112.4
102.5
100.7
131.4
88.5
90.6
108.7
102.2
115.1
103.5
102.6
144.3
93.9
87.3
111.5
101.9
115.9
103.5
102.0
143.0
94.1
88.2
111.8
101.5
115.9
103.5
101.9
138.8
93.8
88.2
112.1
102.2
105.9
112.7
99.1
107.5
117.2
99.8
107.5
116.3
100.6
107.5
116.3
97.6
95.9
95.5
94.6
102.7
102.6
102.2
99.5
101.0
99.1
129.0
116.2
120.2
118.3
131.5
118.6
115.6
119.3
132.8
120.3
111.0
119.2
Rubber and plastic products:1
Crude rubber........................................
Tires and tubes.....................................
Miscellaneous rubber products...........
Plastic construction products (Dec.
1969 = 100)........................................
Unsupported plastic film and sheeting
(Dec. 1970=100)..............................
Laminated sheets, high pressure
(Dec. 1970=100)..............................
Lumber and wood products:
Lumber.......................
Millwork....................
Plywood.....................
Other wood products.
114.7
116.8
111.5
117.2
i Retitled to include the direct pricing of plastic construction products;
continuity of the group index is not affected.
N o te . —Bureau of Labor Statistics indexes.
May
Pulp, paper and products, excluding
building paper and board...........
Woodpulp........................................ .
Wastepaper...................................... .
Paper..................................................
Paperboard........................................
Converted paper and paperboard...
Building paper and board................
108.4
107.1
133.4
110.5
101.8
108.1
101.5
109.6
112.2
104.8
113.1
102.5
109.0
101.4
109.9
112.2
107.7
114.3
103.0
108.8
101.7
110.2
112.4
107.6
114.2
102.6
109.4
102.7
Iron and steel.....................................
Steelmill products.............................
Nonferrous metals.............................
Metal containers...............................
Hardware...........................................
Plumbing equipment.........................
Heating equipment...........................
Fabricated structural metal products
Miscellaneous metal products. . . .
114.8
113.8
130.0
111.7
110.2
112.2
109.7
111.4
112.6
118.2
118.0
113.7
115.8
115.5
113.2
114.5
116.6
117.9
118.4
118.5
117.2
123.1
115.6
114.9
114.7
116.8
118.0
120.1
120.7
117.2
123.1
115.6
115.8
115.1
117.3
118.2
Agricultural machinery and equip...
Construction machinery and equip.,
Metalworking machinery and equip
General purpose machinery and
equipment......................................
Special industry machinery and
equipment......................................
Electrical machinery and equip........
Miscellaneous machinery.................
112.3
114.4
114.1
116.5
120.8
116.0
116.7
120.9
116.6
116.6
121.1
117.4
112.6
117.8
118.3
118.7
114.8
105.6
112.4
119.3
109.7
116.3
119.7
109.5
117.0
120.4
109.4
117.2
111.5
112.6
99.3
105.2
93.2
115.7
114.0
118.2
100.2
107.0
93.7
119.8
114.1
118.1
99.8
107.1
93.7
120.1
115.0
118.1
99.8
107.1
93.7
120.1
115.4
115.3
111.4
125.3
120.6
118.5
126.2
121.0
119.4
124.4
121.2
119.6
109.8
120.1
101.2
101.2
119.6
111.5
113.6
126.7
123.6
98.9
131.5
121.4
114.5
126.7
123.6
101.0
131.5
122.0
114.5
126.7
123.6
101.2
131.5
124.8
107.0
114.9
113.8
119.9
114.1
119.9
114.2
120.4
108.8
1C9.9
107.6
104.5
107.9
113.1
116.9
111.7
105.8
111.8
112.5
116.5
111.7
105.8
112.2
112.4
116.5
111.7
105.9
111.6
Furniture and household durables:
Household furniture.......................
Commercial furniture.....................
Floor coverings...............................
Household appliances.....................
Home electronic equipment............
Other household durable goods. . .
Nonmetallic mineral products:
Chemicals and allied products:
Industrial chemicals...........................
Prepared paint....................................
Paint materials...................................
Drugs and pharmaceuticals...............
Fats and oils, inedible.......................
Agricultural chemicals and products.,
Plastic resins and materials................
Other chemicals and products..........
Apr.
Machinery and equipment:
Hides, skins, leather, and products:
Hides and skins...........
Leather.........................
Footwear......................
Other leather products.
Mar.
Metals and metal products:
Textile products and apparel:
Cotton products...........................
Wool products..............................
Manmade fiber textile products.
Apparel..........................................
Textile housefurnishings..............
Miscellaneous textile products. ..
May
Pulp, paper , and allied products:
Farm products:
Fresh and dried produce.
Grains..............................
Livestock.........................
Live poultry.....................
Plant and animal fibers..
Fluid milk........................
Eggs.................................
Hay and seeds.................
Other farm products.......
1971
Group
Flat glass..........................................
Concrete ingredients.......................
Concrete products...........................
Structural clay products excluding
refractories...................................
Refractories.....................................
Asphalt roofing...............................
Gypsum products............................
Glass containers..............................
Other nonmetallic minerals............
Transportation equipment:
Motor vehicles and equipment.
Railroad equipment...................
Miscellaneous products:
Toys, sporting goods, small arms,
ammunition...................................
Tobacco products.............................
Notions..............................................
Photographic equipment and supplies
Other miscellaneous products..........
A 68
N A TIO N AL PRODUCT AND INCOME □ JU N E 1971
GROSS NATIONAL PRODUCT
(In billions of dollars)
Item
1929
1933
1941
1950
1966
1967
1968
1969
1970
1970
I
II
1971
III
IV
I
Gross national product..................................... 103.1
Final purchases................................................. 101.4
55.6 124.5 284.8 749.9 793.9 865.0 931.4 976.5 959.5 971.1 985.5 989.9 1,020.7
Personal consumption expenditures.................
Durable goods..............................................
Nondurable goods........................................
Services.........................................................
77.2
9.2
37.7
30.3
45.8
3.5
22.3
20.1
Gross private domestic investment...................
Fixed investment...........................................
Nonresidential............................................
Structures..............................................
Producers’ durable equipment.............
Residential structures...............................
Nonfarm................................................
Change in business inventories..................
Nonfarm....................................................
16.2
1.4
17.9
14.5
10.6
3 .0
2 .4
13.4
9 .5
Net exports of goods and services...................
Exports..........................................................
Imports.........................................................
1.1
7.0
5.9
Government purchases of goods and services..
Federal..........................................................
National defense.....................................
Other.........................................................
State and local..............................................
8.5
Gross national product in constant (1958)
dollars...........................................................
57.2 120.1 278.0 735.1
5.0
.9
5.6
1.5
4.0
.6
3.8
.5
1.7 - 1 .6
1.8 - 1 .4
785.7 857.4 922.9 973.1 957.9 968.1 980.0 986.3 1,019.3
80.6 191.0 466.3 492.1 535.8 577.5 616.7 603.1 614.4 622.1 627.0
9.6 30.5 70.8 73.1 84.0 90.0 89.4 89.1 91.9 91.2 85.3
42.9 98.1 206.9 215.0 230.2 245.8 264.7 258.8 262.6 265.8 271.5
28.1 62.4 188.6 204.0 221.6 241.6 262.6 255.2 259.9 265.1 270.2
2.9
6.6
3.9
3.7
4.5
4.0
54.1 121.4 116.6 126.5 139.8 135.7 133.2 134.3 138.3 137.1
47.3 106.6 108.4 118.9 131.4 132.3 131.6 131.2 132.7 133.5
27.9 81.6 83.3
88.7 99.3 102.6 102.6 102.8 103.6 101.3
9 .2 28.5 28.0 29.6 33.8 35.2 35.7 35.3 35.0 34.7
18.7 53.1 55.3 59.1 65.5 67.4 66.9 67.5 68.6 66.6
646.4
97.5
272.8
276.1
142.4
141.0
105.1
19.4
18.6
6.8
6.0
25.0
24.5
14.8
15.0
25.1
24.5
8.2
7.5
30.3
29.7
7.6
7.5
32.0
31.5
8.5
8.0
29.7
29.1
3.5
2.9
29.1
28.4
1.6
.9
28.4
27.8
3.1
2.6
29.2
28.6
5.5
5.0
32.2
31.6
3.6
3.0
36.1
69.0
35.8
35.2
1.4
1.2
1.8
13.8
12.0
5.3
43.4
38.1
5.2
46.2
41.0
2.5
50.6
48.1
1.9
55.5
53.6
3.6
62.2
58.6
3.5
61.1
57.6
4.1
62.8
58.7
4.2
62.8
58.6
2.6
62.0
59.3
3.3
64.6
61.3
37.9 156.8 180.1 200.2 212.2 220.5 219.6 218.4 221.0 223.2
72.4 78.0 78.8 76.6 79. 3 76.8 75.8 74.6
18.4 21. 5 22.6 23.1 23 0 22*9 22*9 23.5
89.4 100.7 110.8 120.9 117.4 118! 7 122*. 4 125.0
228.7
98.4
74.0
24! 5
130^2
203.6 141.5 263.7 355.3 658.1 675.2 707.2 727.1 724.1 723.8 724.9 727.4 720.3
732.7
.4
2.4
2.0
1.3
5.9
4.6
8.0
24.8
1.3
2 .0
16.9
7.2
6.0
13.8
3.1
7.9
18.4
14.1
4.3
19.5
N o te . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
77.8
60.7
17.1
79.0
90.7
99.5 101.3
9 9.7 102.3
99.7
98.6
98.2
see the Survey o f Current Business, July 1968, July 1969, July 1970, and
Supplement, Aug. 1966.
NATIONAL INCOME
(In billions of dollars)
Item
1929
1933
1941
1950
1966
1967
1968
1969
1970
1970
I
II
1971
III
IV
\v
National income................................................
86.8
40.3 104.2 241.1 620.6 653.6 712.7 769.5 800.1 791.5 797.4 806.6 804.8 833.2
Compensation of employees.............................
51.1
29.5
64.8 154.6 435.5 467.2 514.1 564.2 599.8 592.2 596.4 603.8 606.7 625.2
Wages and salaries .......................................
Private.......................................................
Military.....................................................
Government civilian................................
50.4
45.5
.3
4.6
29.0
62.1
Supplements to wages and salaries ...............
.7
.5
2 .7
7.8
41.0
44.2
49.3
55.1
59.7
57.9
59.0
60.4
61.4
64 .6
.1
.6
.1
.4
2.0
.7
4.0
3.8
20.3
20.7
21.9
22.3
24.3
24.9
27.5
27.6
29.3
30.4
28.6
29.3
29.0
30.0
29.6
30.8
29.9
31.5
32.5
32.1
15.1
9.0
6.2
5.9
3.3
2.6
17.5
11.1
6.4
37.5
24.0
13.5
61.3
45.2
16.1
62.1
47.3
14.8
64.1
49.1
15.0
66.8
50.5
16.4
67.6
51.4
16.2
67.6
50.6
17.0
67.8
51.2
16.5
67.8
51.7
16.1
67.4
52.0
15.3
67.0
52.2
14.7
5.4
2.0
3.5
9.4
20.0
21.1
21.3
22.0
22.7
22.5
22.6
22.7
23.0
23.1
10.5 - 1 .2
15.2
37.7
82.4
78.7
85.4
85.8
76.5
76.7
77.5
78.4
73.3
82.7
10.0
17.7
42.6
84.2
79.8
88.7
91.2
81.3
82.6
82.0
37.5
38.0
38.1
84.4
76.3
44.6
43.9
45.4
34.8
38.9
43.8
25.2
41.4
47.5
25.1
16.3
25.8
21.7
Employer contributions for social in
surance ..................................................
Other labor income..................................
Proprietors’ income..........................................
Business and professional...........................
Farm .............................................................
Corporate profits and inventory valuation
adjustment.....................................................
Profits before ta x .........................................
Profits tax liability....................................
Profits after tax ........................................
Dividends..............................................
Undistributed profits...........................
1.4
8.6
23.9
.3
4.9
1.0
146.8 394.5 423.1 464.8 509.0 540.1 534.4 537.4 543.4 545.2 560.6
51.9 124.4 316.8 337.3 369.1 404.9 426.1 422.6 424.0 428.9 429.1 440.7
1.9
5.0 14.6 16.2 17.9 19.0 19.3 20.1 19.5 19.1 18.6 19.2
8.3 17.4 63.1 69.5 77.8 85.1 94.6 91.7 93.9 95.4 97.5 100.6
.5
7.6
17.8
34.3
33.2
40.6
.4
10.1
24.9
49.9
46.6
48.2
5.8
2.8
2.0
- 1 .6
Inventory valuation adjustment..................
.5
- 2 .1
Net interest.......................................................
4.7
4.1
4.4
5.7
48.5
21.4
25.3
23.3
24.9
18.6
25.2
19.4
- 1 .8
- 1 .1
- 3 .3
- 5 .4
- 4 .8
21.4
24.4
27.8
30.7
33.5
8.8
16.0
20.8
29.1
- 2 .5
-5 .0
3.2
2.0
N o te . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o te to table above.
42.7
24.7
23.9
38.9
86.4
25.1
18.8
25.4
20.0
- 5 .8
- 4 .5
- 5 .9
- 3 .0
- 3 .7
32.4
33.1
33.8
34.5
35.2
JU N E 1971 □ N A TIO N AL PRO D U CT AND INCOME
A 69
RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions of dollars)
1929
1933
1941
1950
1966
1967
1968
1969
1970
1970
I
Gross national product..................................... 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..............................................
Business transfer payments............—
Ip
IV
18.3
85.0
86.5
88.4
91.1
3.6
-3 .1
94.5
3.7
2.4
97.9
3.7
- .4
1.5
1.8
2.1
2.0
40.3 104.2 241.1 620.6 653.6 712.7 769.5 800.1 791.5 797.4 806.6 804.8
833.2
.1
10.5 - 1 .2
.2
.3
23.3 65.7
.8
3.0
1.5 - 1 .0
.2
68.9
74.0
84.3
93.3
3.6
- 1 .1
- .1
63.9
78.9
83.6
Less: Corporate profits and inventory valu
ation adjustment...............................
Contributions for social insurance. . . .
Excess of wage accruals over disburse
ments ..................................................
III
55.6 124.5 284.8 749.9 793.9 865.0 931.4 976.5 959.5 971.1 985.5 989.9 1,020.7
7.9
86.8
II
1971
70.4 78.1
3.1
3.3
- . 7 - 2 .4
1.4
2.3
.7
82.1
85.2 92.1 89.3
3.5
3.6
3.6
- 4 .7 - 1 .8 - 5 .4
1.0
1.8
1.6
15.2
2.8
37.7
6.9
82.4
38.0
78.7
42.4
85.4
47.1
85.8
53.6
76.5
57.1
76.7
56.0
77.5
56.7
78.4
57.6
73.3
58.1
82.7
63.2
2.5
- 2 .1
- .4
.9
1.5
2.6
14.3
41.1
48.7
55.7
61.6
73.9
66.3
75.8
75.1
78.5
82.3
2.5
5.8
.6
1.6
2.0
.7
2.2
4.4
.5
7.2
8.8
.8
22.2
20.8
3.0
23.6
21.4
3.1
26.3
23.3
3.3
29.0
24.7
3.5
31.8
25.2
3.6
31.0
25.2
3.6
31.4
25.1
3.6
32.2
25.4
3.6
i
32.5 1
25.ll
3.7J
32.5
25.8
3.7
85.9
47.0
Less: Personal tax and nontax payments__
2.6
1.5
Equals: Disposable personal income...............
83.3
Less: Personal outlays...................................
79.1
77.2
1.5
.3
.2
.2
.5
.6
.7
.7
.8
.9
.9
1.0
1.0
.9
1.0
Equals: Personal saving...................................
4.2
-.9
11.0
13.1
32.5
40.4
40.4
37.6
50.2
44.8
51.5
52.7
51.8
49.8
Disposable personal income in constant (1958)
dollars............................................................ 150.6 112.2 190.3 249.6 458.9 477.5 499.0 511.5 529.8 522.9 532.0 534.2 530.0
538.3
Personal consumption expenditures.
Consumer interest payments............
Personal transfer payments to for
eigners............................................
96.0 227.6 587.2 629.3 688.7 748.9 801.0 782.3 801.3 807.2 813.3
831.5
97.5 117.3 116.3 117.0 117.7 114.2 116.1
116.4
45.5
92.7 206.9 511.9 546.3 591.2 631.6 684.8 665.3 683.6 693.0 697.2
715.1
46.5
45.8
.5
81.7 193.9 479.3 506.0 550.8 593.9 634.6 620.5 632.1 640.2 645.5
80.6 191.0 466.3 492.1 535.8 577.5 616.7 603.1 614.4 622.1 627.0
2.4 12.4 13.2 14.3 15.7 17.0 16.4 16.8 17.2 17.5
.9
665.3
646.4
17.9
3.3
20.7
75.4
83.0
N o te . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o te to table opposite.
PERSONAL INCOME
(In billions of dollars)
Item
1971
1970
1969
1970
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.p
Total personal income.........................
748.9 801.0 806.0 799.7 798.2 803.3 806.4 811.9 809.9 812.6 817.5 827.4 830.4 836.8 841.3
Wage and salary disbursements..........
Commodity-producing industries...
Manufacturing only ......................
Distributive industries.....................
Service industries.............................
Government.....................................
509.0 540.1 539.9 540.5 538.1 541.5 543.2 546.6 541.8 544.1 549.8 557.8 559.8 564.2 567.0
197.5 201.2 202.3 200.9 201.3 202.1 202.0 201.5 196.8 196.8 202.3 203.0 202.5 204.5 205.1
157.5 158.9 160.0 159.2 159.5 160.1 159.6 159.5 154.3 153.6 158.9 160.2 159.8 160.8 160.9
119.8 128.4 126.0 127.2 127.9 129.1 129.7 130.2 130.6 131.4 130.5 133.4 134.2 135.4 136.4
87.7 96.6 95.1 95.5 95.7 96.8 97.3 97.9 98.8 99.8 100.4 102.2 103.1 103.9 104.5
104.1 114.0 116.5 116.9 113.2 113.5 114.2 117.0 115.6 116.1 116.6 119.2 120.0 120.4 121.0
Other labor income.............................
27.6
30.4
29.8
30.0
30.3
30.6
30.8
31.1
31.3
31.5
31.7
31.9
32.1
32.3
32.5
Proprietors’ income.............................
Business and professional...............
F arm .................................................
66.8
50.5
16.4
67.6
51.4
16.2
67.9
51.0
16.9
67.8
51.3
16.5
67.7
51.5
16.2
67.8
51.6
16.2
67.8
51.7
16.1
67.8
51.8
16.0
67.6
51.9
15.7
67.3
52.0
15.3
67.1
52.1
15.0
67.1
52.2
14.9
66.8
52.1
14.7
67.0
52.3
14.7
67.0
52.4
14.6
22.0
22.7
22.6
22.6
22.7
22.7
22.7
22.8
22.9
23.0
23.1
23.2
22.8
23.3
23.4
25.7
Transfer payments...............................
Less: Personal contributions for social
insurance...........................................
24.7
25.2
25.2
25.3
24.7
25.2
25.3
25.5
25.6
25.7
24.1
25.9
25.9
25.7
59.7
65.2
64.2
64.5
64.8
65.3
66.0
66.8
67.0
67.1
67.1
67.5
67.7
67.7
67.9
65.1
77.6
84.1
76.6
77.6
78.1
78.6
79.6
81.7
81.9
82.9
84.5
86.0
87.6
88.8
26.0
27.8
27.7
27.7
27.6
27.8
28.0
28.2
28.0
28.1
28.4
30.6
30.7
30.9
31.1
Nonagricultural income........................ 726.7 778.6 783.0 777.0 775.7 780.9 784.0 789.7 787.9 791.0 796.2 806.2 809.2 815.7 820.2
22.2 22.4 23.0 22.7 22.4 22.4 22.3 22.2 21.9 21.6 21.3 21.2 21.2 21.1 21.1
Agriculture income...............................
N o te . —Dept, of Commerce estimates. Monthly data are seasonally
adjusted totals at annual rates. See also N o te to table opposite.
A 70
FLOW OF FUNDS □ JU N E 1971
SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1968
Transaction category, or sector
1966
1967
1968
1969
1970r
IV
1969
I
II
1970'
III
IV
I
II
III
IV
Funds raised, by type and sector
Total funds raised
by nonfinancial sectors..................
1
68.5
83.5
96.9
90.7
92.5
93.6
88.4
86.8
81.4 103.8
93.5 109.2
1
2 U.S. Government.............................
Public debt securities....................
3
Budget agency issues.....................
4
3.5
2.3
1.2
13.0
8.9
4.1
13.4 - 3 .6
10.3 - 1 .3
3.1 - 2 .4
12.8 - 7 .0
12.9 - 8 .4
- .1
1.4
- 5 .4
- 5 .8
.5
- 9 .5
- 8 .8
- .7
- .7
4.9
- 5 .6
1.2
4.9
- 3 .7
3.0 16.0
3.5 18.1
- . 5 - 2 .0
12.2
11.4
.8
20.0
18.5
1.5
2
3
4
5 A ll o th e r n o n fin a n cia l s e c to r s ..
Capital market instruments..........
6
Corporate equity shares............
7
Debt capital instruments..........
8
State and local govt, sec.......
9
Corporate and fgn. bonds. . .
10
Mortgages..............................
11
Home mortgages ................
12
Other residential.................
13
Commercial........................
14
Farm ...................................
15
64.9
39.9
.9
39.0
5.7
11.0
22.3
70.5
48.9
2.4
46.6
8.7
15.9
22.0
83.5
50.2
- .7
50.9
9.6
14.0
27.3
84.1 97.7
65.0 58.3
6.8 - 2 .1
58.1 60.4
11.8 14.2
21.1 16.3
25.2 29.9
97.9 103.0
57.6 55.1
.3
3.6
57.3 51.5
12.8
9.4
15.8 13.3
28.7 28.8
89.1
51.2
6.0
45.2
5.6
12.1
27.5
85.7
51.7
9.2
42.5
4.7
11.1
26.7
78.3
51.6
5.9
45.6
8.9
15.0
21.7
81.4
64.3
5.4
59.0
8.9
22.2
27.8
13.9
5 .6
5 .8
1 .5
10.7
4 .6
4 .8
1.5
87.7
60.7
6.0
54.7
10.2
22.4
22.1
89.2
83.2
9.9
73.3
19.3
24.8
29.3
13.2
6 .8
7.1
2 .2
5
6
7
8
9
10
11
12
13
14
15
Other private credit.......................
Bank loans n.e.c........................
Consumer credit........................
Open market paper...................
Other..........................................
21 B y b o rro w in g se c to r — ................
Foreign..........................................
22
State and local governments........
23
Households....................................
24
Nonfinancial business...................
25
Corporate ...................................
26
Nonfarm noncorporate ...............
27
Farm ..........................................
28
16
17
18
19
20
11.6
3 .6
4 .7
2.1
15.2
3 .5
6 .6
2.1
25.0
10.3
7.2
1.0
6.4
21.6
9.6
4.6
2.1
5.2
33.3
13.4
11.1
1.6
7.3
64.9
1.5
6.4
23.2
33.8
70.5
4.1
8.8
19.7
37.9
24.9
5 .5
3 .5
29.3
5 .0
3 .5
11.4
3 .1
5 .7
2 .1
90.4
94.1
53.9
4.8
49.1
8.1
13.1
27.9
15.7
4 .8
5 .5
1 .9
96.9
12.3
5 .8
5 .4
1 .8
16.1
3 .9
8 .0
1.9
16.5
4 .2
5 .9
2 .2
16.6
4 .7
5.1
2 .3
15.7
4 .8
5 .3
1.8
40.2
15.7
9.3
3.3
11.8
19.2
2.7
4.3
3.8
8.4
39.4
20.9
12.1
.7
5.7
40.3
17.0
10.2
4.9
8.1
47.9
19.1
10.8
4.7
13.3
38.0
11.7
8.9
2.7
14.6
33.9
14.2
7.5
1.0
11.2
26.7
7.6
4.8
5.0
9.4
27.0
9.0
6.1
2.2
9.8
6.0
17.0
1.9 - 7 .6
6.2
.2
.5
7.5
8.4
5.9
16
17
18
19
20
83.5
3.0
9.9
31.8
38.8
94.1
3.7
8.5
32.2
49.7
84.1
2.6
12.2
21.1
48.1
97.7
2.8
14.6
34.7
45.6
97.9 103.0
4.0
6.0
13.4
9.7
33.0 36.0
47.4 51.3
89.1
2.3
5.8
31.5
49.4
85.7
2.4
5.1
28.2
49.9
78.3
2.6
9.4
22.9
43.4
41.1
6 .6
3 .6
37.4
8 .7
3 .3
41.0
6 .4
2 .5
87.7
1.7
10.4
21.4
54.3
81.4
2.2
9.7
23.8
45.6
89.2
4.0
19.5
16.4
49.4
35.8
4 .6
3 .0
45.1
5 .4
3 .8
34.3
8.1
3 .2
39.4
6 .9
3.1
21
22
23
24
25
26
27
28
30.3
5 .8
2 .7
39.1
7 .4
3 .2
38.7
6 .2
3 .2
35.0
8 .0
2 .6
37.1
7.1
3 .3
11.1
5 .4
4 .2
1.4
14.2
6 .2
5 .5
2 .0
Funds advanced directly in credit markets
1 Total funds raised.............................
Advanced directly by—
U.S. Government.........................
U.S. Govt, credit agencies, n e t...
Funds advanced........................
Less funds raised in cr. m kt.. . .
68.5
83.5
96.9
90.4
96.9
90.7
92.5
93.6
88.4
86.8
81.4 103.8
4.9
.3
5.1
4.8
4.6
.5
-.1
- .6
4.9
- .2
3.2
3.5
2.5
.2
9.0
8.8
3.2
1.2
9.4
8.2
3.1
- .8
2.3
3.1
2.5
.4
4.0
3.6
1.7
- .8
7.6
8.4
3.7
- .1
10.5
10.6
2.3
1.5
14.1
12.5
3.9
- .7
13.7
14.4
6
7
8
9
Federal Reserve System................
Commercial banks, net.................
Funds advanced........................
Less funds raised.......................
3.5
16.7
16.8
.1
4.8
36.6
36.9
.2
3.7
39.5
39.7
.2
4.2
5.0
12.2 31.3
16.5 29.5
4.3 - 1 .8
- 4 .4
36.2
36.1
-.1
4.1
7.9
8.8
.9
4.0
29.3
33.8
4.5
- .5
- .9
4.2
5.0
9.3
12.1
18.9
6.8
1.2
1.0
10.1
9.1
10
11
12
13
Private nonbank finance...............
Savings institutions, net............
Insurance...................................
Finance n.e.c., net.....................
25.9 34.4 34.2 30.4
7.8 16.8 14.6 10.4
19.3 18.7 22.0 21.8
- 1 .3 - 1 .1 - 2 .4 - 1 .8
14
Foreign..........................................
- 1 .8
2.8
2.5
15
16
17
18
19
Private domestic nonfinancial---Business.....................................
State and local governments. . .
Households................................
Less net security credit.............
19.1
3.6
3.4
11.9
- .2
- .2
- .2
2.1
*
2.2
12.3
7.4
.4
5.8
1.4
2
3
4
5
3.6
1.6
6.9
5.4
93.5 109.2
1
3.4
.8
7.1
6.3
1.9
2.9
9.8
6.9
2
3
4
5
7.7
5.5
23.3 63.6
27.4 52.1
4.1 -1 1 .6
5.5
37.3
28.4
- 8 .9
6
7
8
9
47.8
20.7
25.3
1.7
10
11
12
13
39.3 38.3 31.1 39.8 26.1
6.8
14.7 16.4 15.9 13.3
24.9 25.2 19.8 27.5 20.6
- . 3 - 3 .2 - 4 .6 - 1 .0 - 1 .3
24.8 25.3
5.6
4.7
19.5 23.2
- . 2 - 2 .6
42.3
15.3
27.1
- .1
41.9
18.0
24.1
- .1
10.9
11.9
.2
1.0
5.1
- 1 .1
9.4
9.5
4.9
19.6
14
39.5
6.1
13.8 - 1 .0
6.1 - 3 .8
18.0
9.5
- 1 .6 - 1 .4
6.5
2.0
3.7
4.1
3.3
46.5
15.8
8.1
19.8
- 2 .7
18.6
14.1
2.9
1.5
- .2
55.0
18.1
7.7
25.9
- 3 .2
37.9
7.0
5.6
24.9
- .4
41.2 18.0 -2 8 .9
15.1 12.3 -2 8 .5
- 2 .5 - 5 .3 - 7 .8
24.8
8.9
7.2
- .2
- 3 .8 - 2 .1
- 5 .8
- 2 .9
.4
- 2 .8
.6
15
16
17
18
19
81.4 103.8
93.5 109.2
1
55.1
13.9
2.0
11.9
72.1
54.1
7.0
47.1
68.3
97.1
7.3
89.9
73.6
79.4
8.6
70.8
7.4
4 .4
31.9
15.2
68.2
21.7
46.3
24.5
2
3
4
5
6
7
18.0 -2 8 .9
- 5 .8
8
9
10
11
- 4 .5
.7
- 9 .4 -1 8 .9
4.9 19.6
12
13
14
1.3
Sources of funds supplied to credit markets
1
2
3
4
5
6
7
8
9
10
11
Total borrowing
by nonfinancial sectors...................
Supplied directly and indirectly by
pvt. domestic nonfin. sectors:
T otal..............................................
Deposits....................................
Demand dep. and currency..
Time and svgs. accounts. . . .
A t commercial banks. ..
A t savings instit..............
U.S. Govt, securities ..............
Pvt. credit market instr ..........
68.5
83.5
96.9
90.4
96.9
90.7
92.5
93.6
88.4
86.8
42.8
23.7
4.0
19.7
51.3
51.5
12.4
39.1
60.8 44.2
4.7
48.5
14.8
7.1
33.7 - 2 .4
67.2
61.1
6.2
54.9
58.1
51.6
13.1
38.5
58.9
12.5
5.9
6.6
26.8 47.1
8.2 - 7 .9
6.6
7.6
1.6 -1 5 .5
43.8
5.9
8.2
- 2 .3
12.5
7.2
22.5
16.6
20.8 - 1 0 . 5
8.1
12.9
38.4
16.5
23.9
14.6
13.4
- 7 . 4 - 2 1 .3
5 .8
9 .0
39.5
6.1
6.5
46.5
18.6
55.0
37.9
41.2
—7.3
14.9
3 .0
15.9
21.8
27.2
.9
23.6
23.2
29.4
14.1
27.3
6 .5
37.4
1.4 - 1 .6
- 1 .4
3.3
- 2 .7
- .2
- 3 .2
- .4
- 3 .8
4.3
1.8
2.5
9.6
8.3
1.3
2.4
- 8 .4
10.9
8.2
- 3 .7
11.9
13.8
13.7
.2
14.8
13.8
1.0
10.4 - . 6
5.3
.5
5.1 - 1 .1
1.2 - 1 .1
4.6
4.9
17.5 18.5
4.3
9.5
.4
2.5
18.7
15.0
2.6 - 6 .8
3.2
3.1
21.0 20.0
.4
8.2
- 5 .8
2.5
14.9
8.2
1.7
1.7
22.4
26.2
1.6
3.7
18.7
6.8
- .2
13.4
- .2
Other sources:
Foreign funds................................
12
At banks....................................
13
14
Direct........................................
.7
2.5
- 1 .8
4.6
1.7
2.8
Chg. in U.S. Govt, cash bal.........
U.S. Government loans...............
Pvt. insur. and pension res...........
Sources n.e.c..................................
- .4
4.9
16.7
3.8
15
16
17
18
-6 .4
4 .2
15.0
26.9
19.1
8 .5
11.4
—1 .7
7.8
2 .2
Less security debt.................
- 6 .8
12.3
7.7
N ote.— 1970 data revised from the Mar. 1971 B ulletin.
- 8 .2 - 8 .3 -1 9 .3
20.2
23.8 - 2 1 . 8
- 2 .1
-.2
.6
10.8
2.7
1.3 - 6 .8
9.4
9.5
3.9
1.0
2.3
3.9
18.9 18.7
18.6 - 8 .1
2.1
3.6
22.7
.6
1.4
3.4
19.8
5.2
6.1
1.9
22.8
4.1
15
16
17
18
J U N E 1971 □ FLOW OF FUNDS
A 71.1
PRINCIPAL FINANCIAL TRANSACTIONS
(Seasonally adjusted annual rates; in billions of dollars)
1966
1967
1968
1969
1970 r
IV
1970r
1969
1968
Transaction category, or sector
I
II
III
IV
I
II
III
IV
Demand deposits and currency
1 Net incr. in banking system liability. .
U.S. Government deposits...........
2
Money supply...............................
3
Domestic sectors.......................
4
Households............................
5
Nonfinancial business...........
6
State and local governments.
7
Financial sectors...................
8
9
Mail float...............................
Rest of the world......................
10
2.6
- .4
3.0
3.9
3.1
.7
- .1
- .1
.3
- 1 .0
14.8 14.8
8.5
.6
1.1 - 1 .2
7.9
13.7 16.0
13.4 15.7
7.6
9.4 11.1
5.9
.8
1.8 - . 8
- 1 .0
.7
3.2
.9
.5
1.0
3.2
1.2 - 1 .2
.3
.3
.3
10.1
7.1 - 1 .0
2.5 - 6 .9 - 5 .7
7.7 14.0
4.7
7.4 13.6
4.8
3.5 15.5 - . 9
.3 - 5 .4
3.9
1.2
.6
2.5
1.2
.5 - 1 .1
2.6
.3
1.1
.3
.4 - . 1
10.3 11.0
1.7
1.9
8.6
9.1
8.0
8.5
10.2
9.5
- 5 .6 - 4 .3
3.4
3.9
1.4
.9
- 1 .3 - 1 .5
.6
.6
13.2
5.1
9.8
4.2
2.0
1.1
9.0
4.0
7.8
9.0
2.6
8.2
5.1
7.4
7.4
3.0 - 4 .3 - 2 .7
2.9
- .3
1.0
.8
.5
1.2
- 2 .8
- .7
1.3
*
1.4 - . 4
16.9
6.0
10.8
10.3
- 1 .8
3.9
3.1
1.7
3.3
.5
1
2
3
4
5
6
7
8
9
10
87.5 67.1
65.6 41.3
32.3 12.2
13.4
9.6
- 3 .2 - 5 .1
22.5 24.5
21.9 25.8
1
2
3
4
5
6
7
8.9
.7
8.2
8.6
1.0
4.7
1.1
1.4
.5
- .5
Time and savings accounts
1
2
3
4
5
6
7
8
9
10
11
12
At commercial banks—T otal. . . .
Corporate business...................
State and local governments. . .
Foreign......................................
Households................................
At savings institutions..................
Liabilities—
Savings and loan assns..........
Mutual savings banks...........
Credit unions.........................
Assets
Households............................
Cr. union deps. at S & L’s...
20.2
13.3
- .7
1.3
.8
11.9
7.0
40.8
23.8
2.9
2.4
1.2
17.1
17.0
33.3
20.6
1.9
3.2
- .3
15.7
12.8
3.6
2.6
.8
10.6
5.1
1.2
7.5
4.2
1.1
4.1
2.6
1.4
11.1
4.4
1.7
8.1
4.5
1.3
8.0
3.8
1.6
4.8
2.7
1.2
2.9
1.5
1.3
.7
2.2
1.5
2.0
1.6
1.6
9.8
4.4
1.7
15.6
4.7
1.5
16.9
7.0
1.9
8
9
10
7.2
- .2
16.6
.3
12.9
-.1
8.1
*
16.5
.7
14.6
- .7
13.4
.1
9.0
- .2
5.8
- .1
4.2
.3
4.4
.8
15.2
.6
21.7
.2
24.5
1.3
11
12
17.5 21.5
- .9
- .2
4.4 18.3
2.1
.2
14.4
5.4
- 2 .6 - 2 .2
18.6
.5
10.9
1.0
6.3
-.1
26.9
1.7
16.8
1.7
6.9
- .2
1
2
3
4
5
6
21.5 18.6 26.9
*
.1
- .6
- .5
1.0
4.4
- .8
1.2
4.3
.1
.2 - . 2
5.4
7.9
5.6
8.2
4.7 15.5
6.8 11.0 17.6
6.8
8.9
8.0
*
2.1
9.6
9.8
2.2
3.7
7.6
- .7
2.5
2.2
2.9
1.2
- 8 .2 - 8 .3 -1 9 .3
- .2
.5
1.7
- 9 .2 -1 0 .8 - 1 9 .2
1.3
2.0 - 1 .8
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
- 1 .6 53.9
- 9 .7 36.7
- 9 .8
12.8
- 5 .9
9.9
1.0 - 1 .9
5.2 15.8
8.1
17.2
38.0
5.9
- .2
24.2 - 7 .6 - 9 .0
3.9 - 1 4 .4 - 9 .5
3.5 - 3 .7 - 5 .0
.2 - . 5 - 1 .4
16.5 11.3
7.1
13.9 13.5
8.8
-1 5 .4
3.4
- 2 1 .2 - 1 .1
- 1 1 .0 - 4 .2
-1 0 .3 - 4 .6
.4
5.7
*
2.4
5.7
4.5
16.8 44.3
11.6 28.5
.5
6.1
6.4 10.3
4.3 - 3 .5
.5 15.5
5.2 15.8
U.S. Government securities
1
2
3
4
5
6
Household savings bonds............
Direct excluding savings bonds...
Budget agency issues.....................
Sponsored agency issues...............
Loan participations.......................
7 Net acquisitions, by sector...............
U.S. Government (agency sec.)...
8
Sponsored credit agencies............
9
Direct marketable.....................
10
11
FHLB special issue...................
Federal Reserve System...............
12
Foreign..........................................
13
Commercial banks........................
14
D irect.........................................
15
Agency issues.............................
16
Nonbank finance...........................
17
Direct.........................................
18
Agency issues.............................
19
Pvt. domestic nonfin.....................
20
Savings bonds—Households. . .
21
Direct excl. savings bonds........
22
Agency issues.............................
23
8.7
.6
1.8
*
5.1
1.3
12.5
1.0
7.9
.1
- .6
4.0
16.7
.4
9.9
1.5
3.2
1.7
8.7 12.5
1.3 - . 1
*
1.0
.3
.9
.
9
.6
3.5
4.8
- 2 .4
2.1
9.3
- 3 .6
- 3 .4
6.3
- .2
3.0
.4 - 1 .9
- . 2 - 2 .2
.3
.5
8.5 - 1 .7
.6
1.0
3.3 - 3 .0
.4
4.7
16.7
.1
-.1
- .1
5.5
- .4
- .9
- .4
9.1
- 1 .9
10.0
21.1 - 4 .2
- . 5 - 1 .0
.3
.7 - . 4
- .4
- .8
12.6 - 9 .0 - 5 .4 - 8 .4
5.6
1.3
2.6
.8 - 1 .3
- .8
8.2
2.7
4.8
8.4 10.6
- .3
- 1 .3 - 1 .2
.7 - 4 .8
5.5 21.1
- 1 .3
- .1
- .2
1.7
- .5
1.9
.3 - . 2
3.8
4.2
5.0
- . 5 - 1 .8
9.1
3.4 - 9 .5
9.0
2.2 - 9 .3
5.8
1.3
3.2
- .3
2.2
- .8
3.7
.4 - 2 .4
1.5
1.8
1.6
2.2
7.7 15.0 - 7 .3
.4 - . 4
.3
4.1
8.7 -1 0 .5
3.2
6.7
2.9
- 4 .2
- 1 .0
.1
.1
- 4 .3
6.8
- 4 .1
- 5 .0
.9
- 4 .8
- 6 .5
1.7
3.0
.7
- .1
2.4
- .5
- 1 .1
- 2 .0
- 2 .0
*
4.0
- 4 .5
-1 6 .2
- 1 4 .4
- 1 .8
- 2 .4
- 4 .4
2.0
21.8
- .4
16.1
6.2
- 1 .0
- 2 .2
.3
.3
*
4.2
- 1 .8
- 7 .2
- 8 .8
1.6
4.8
2.7
2.0
.9
- .4
- 5 .1
6.4
13.8
.1
4.8
- .2
12.5
- 3 .3
10.0 13.8
- . 8 - 1 .0
1.2
- .5
- .8
.4
.8
.3
- .4
9.2
2.7 - 3 .7
- 9 .5 - 5 .2
- 7 .6 - 6 .2
- 1 .9
1.0
- .8
-4 .7
- 7 .3
- .6
- .2
2.6
23.2 14.1
- .8
.1
18.8
5.0
9.1
5.2
17.5
.1
2.0
2.8
- .8
1.1
8.0
.5
- .7
1.3
- .7
- 3 .2
2.6
6.5
- .9
- 2 .7
10.1
Private securities
1 Total net issues, by sector................
State and local governments........
2
Nonfinancial corporations...........
3
Finance companies.......................
4
Commercial banks........................
5
Rest of the world.........................
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Households....................................
Nonfinancial corporations............
State and local governments........
Mutual savings banks...................
Insurance and pension funds.......
Finance n.e.c..................................
Security brokers and dealers...
Investment companies, net.......
Portfolio purchases...............
Net issues of own shares. . . .
18.5
5.7
11.4
.8
.1
.5
28.2
8.7
17.0
1.0
.2
1.3
18.5 28.2
3.2 - 1 .8
1.0 - . 2
1.9
1.1
1.9
9.8
.3
2.3
12.9 16.6
- 2 .2
- .9
.1
.2
- 2 .4 - 1 .1
1.4
1.5
3.7
2.6
.3
.6
27.7
8.1
16.4
1.6
.1
1.5
42.3
11.8
27.0
2.5
.1
.9
23.9 27.7
- 1 .2
2.7
5.1
- 1 .1
- .4
2.6
8.9
.3
1.6
.6
17.6 16.8
- 3 .6 - 2 .5
- .9
.5
- 2 .8 - 3 .0
1.9
2.7
4.7
5.6
2.1
2.3
42.3
7.7
1.4
.2
10.8
1.7
18.7
.5
1.1
—.6
1.8
2.4
1.4
23.9
9.6
12.1
.8
.2
1.3
29.3
14.2
12.2
1.0
- .1
2.0
30.4
12.8
14.7
1.4
.1
1.5
28.8
9.4
14.9
2.2
.3
2.0
25.1
5.6
16.1
1.4
*
2.0
41.0
10.2
28.9
2.3
*
- .4
39.3
8.9
25.7
2.8
*
2.0
57.7
19.3
33.4
3.8
*
1.3
1
2
3
4
5
6
31.3 41.0
9.9
6.9
.6
2.0
.4
.7
5.0
8.9
1.2
2.0
17.0 20.6
- . 3 - 3 .6
.6
.5
- . 8 - 4 .2
1.3 - 1 .0
3.2
2.1
.5
.6
39.3
2.6
1.6
- .8
14.5
1.2
13.9
4.2
5.6
- 1 .5
2.4
3.9
2.1
57.7
11.3
1.2
.6
14.7
2.5
23.2
1.8
- 2 .4
4.2
4.5
.4
2.3
7
8
9
10
11
12
13
14
15
16
17
18
19
5.2 10.3
17.6
1.5
2.3 - 1 .1
12.8
4.6 10.4
- .1
.6 - .3
1.2
3.4 - 2 .3
5.0
1.2
.9
- .2
3.0
- 1 1 .8
1.0
- 6 .7
- 1 .9
- 4 .1
1
2
3
4
5
26.3
4.7
19.8
1.3
- .1
.5
29.3 30.4 28.8 25.1 26.3
4.8
3.4 - 2 .0
4.7
3.8
5.0
- .9
5.5
6.7
3.1
1.4
- 1 .8
4.9
3.0
.9
2.4 - 1 .1 - 1 .7
13.6
1.6
*
.2
1.5
1.1
1.0
19.8 16.3 20.5 15.0 15.4
* —. 6 - 1 .7
-1 0 .3 - 7 .6
2.8 - 2 .2
- 9 .2
.2
1.1
.4
- 1 .2 - 7 .8 - 1 .1 - 3 .4
- .2
3.6
2.7
4.6
4.3
4.2
4.7
6.1
5.5
7.6
3.9
.9
.7
2.9
3.7
31.3
8.9
20.2
1.3
.2
.7
Bank loans n.e.c.
1
2
3
4
5
Nonfinancial business...................
Rest of the world.........................
9.0i
7.5
2.1
.4
7.7
10.1
- .2 ; - .2
- 1 .3 i - 2 .1
http://fraser.stlouisfed.org/
N ote.— 1970 data revised from the Mar. 1971 B ulletin.
Federal Reserve Bank of St. Louis
15.7
3.1
10.6
-.3
2.3
17.8
2.4
13.5
-.2
2.1
2.1
.8
2.3
- .4
- .5 :
23.0
4.3
17.5
- .9
2.1
18.0
2.9
13.9
.2
.9
24.0
4.2
14.4
.6
4.9
11.1
.9
12.3
- 1 .5
- .6
A 71.2
FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1970
(Amounts outstanding in billions o f dollars)
(A) All sectors
Transaction
category
Households
A
1886.9
L
482.0
Business
State
and local
govts.
A
A
451.3
L
L
U.S.
Govt.
Total
A
L
1 .2
.4
2 0
I M F p o s itio n ..............................
T r e a su r y c u r r e n c y ....................
1 2 2.2
11 Time and savings accounts
12
Time deposits...................
13
Savings accounts.............
4 0 4 .8 ............
17 2 .6 ............
2 3 2 .2 ............
14 Life insurance reserves........
15 Pension fund reserves.........
16 Interbank claims 2..............
1 3 0 .0 ............
2 3 3 .6 ............
17 Corporate shares 3..............
7 4 7 .0
..
184.2 ...........
12.5 .
4 9 .6
10.3
18 Other credit mkt. instr........ 2 2 0 .9
19
U.S. Govt, securities 4. .. 1 0 0 .9
20
State & local govt, oblig.. 3 8 .2
21
Corp. & fgn. bonds........
3 9 .7
1 3 .4
22
Home mortgages.............
23
Other mortgages.............. 2 8 .7
24
Consumer credit.............. .........
25
Bank loans n.e.c.............. .........
26
Other l o a n s ............................. .........
30 Taxes payable......................
31 Trade credit ^......................
32 M is c e lla n e o u s .............................
..
2.2
2.2
23.1 .
2 6 .4
___
___
2 7 2 .6
2 0 .5
1 2 6 .8
20.8
20 9
454.3 ...........
222.1 ...........
232.2 ............
130.0 ...........
233.6 ...........
.4
........
........
.........
.. .
...
6 .0
4 8 7 .9
....
167.9
2 .5
151.0
............
.. .. 1 1 6.9
2 1 .9
4 9 .6
3 3 .7
22.1
2 .8
6 .7
2 .2
.........
148.2
32 5.9 1097.7
132.9
143.4
5 0 .1 143.4
4 6 .3 167.9
1 5 .6 275.1
2 8 .7 171.4
3 0 .4 126.8
......... 137.7
4.8 21.9 75.3
1 .6
.1
1 .5
464.6
2 3 0.8
233.7
.........
.........
3 6 .5
122.6
206.1
3 6 .5
146.5
47 .6
...
7 .3
2 7 .5
56 .9
*
30 1 .4 1155.7 113.7
2 9 9.9 186.1
3 8 .9
93 .3
158.5
2 5 .2
6 .0
1 .5 258.1
3 .1
3 . 5 ........... 139.2
9 6 . 5 ...........
1 5 6.9
13.1
67 .1
3 3 .4
47.4
A
L
10 1
143.8
75.4
. .
4.1
6 .4
4 .1
2 0 2 .4
127.9
2 1 .8
155.5
8 0 .4
L
20 .3
6 .6
4 .5
....
4 .2
.3
4 .3
4 9 .7
..
A
L
A
L
A
L
Discrepancies
A
.........
4 4 . 6 .........
6 .........................6
1. 9
1. 9 ...........
7 .5
6 .0
...........
....
....
- 1 .6
3
4
5
6
...........
2 1 .4
- .8
7
8
9
10
............
5 2 .0
50 .1
. . . ............
...........
1 .6
......................... 3
4 .6
38 .9
3 8 .9
3 1 .2
6 2 . 2 ............
6 2.1 ............
15 .6 .........
7 . 5 ...........
1 7 .6 .........
...........
. . ..
...........
...........
183.1
172.2
7 .9
3 .0
.i .........
3 1 .9
1 6 . 6 ............
4 3 5.2
4 .7
7 5 . 5 ............
6 9 . 3 ............
2 .5
2 .4
4 1 . 9 ............
3 0 .6
5 0 . 1 .........
156.9 ............
8 .4
2 .3
3 . 5 ............
................... 1 .........
1 .6
.........
1 .9
2 0 .2
1 . 6 ............
. 1 ............
.........
.........
122.6
206.1
146.5
47.6
2 1 4 .5
2 0 0 .9
1 0.3
3 . 3 ............ ...........
...........
8 . 3 ............
5 .3
1 2 .0 .........
8 . 5 .........
1 .3
L
32 .7
............
....
...........
2 3 0 .8
1 .5 233.7
4 4 .9
4 .2
A
Total1
1
2
1 0 . 7 .........
. 3 ...........
— . 1 ............
7 .5 .........
.2 .
Rest
of the
world
...........
2.6
.
122.8
Private
nonbank
finance
Commercial
banks
8 5 .2 ......... 499.3
818.1 ......... 118.8 ......... 4082.0 .........
45.5 .........
85.2 ......... 468.0 ......... 764.6 ......... 138.6 ......... 3214.2
19.7 11.8
9.3 11.8
10.3 . ..
1 Where no amount appears in total-asset column, total assets are identically equal to amount shown
for total liabilities.
2 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R.
loans to banks, F.R. float, and stock at F.R. Banks.
3 Assets shown at market value; nonbank finance liability is redemption value of shares of open-end
investment companies. No specific liability is attributed to issuers of stocks other than open-end invest
ment companies for amounts outstanding.
A
1 0 . 7 .........
.3 . .
— .1
...
7 .5
...
235.1
222.3
9 .5
3 .3
2.2 10.1
2.2 .......
10.1
10.1
5 3 2 0 2 .4
5 .1 1 0 1 .7
L
...........
16 .8
......... ...........
...........
7 4 7.0 ...........
7 1 .3
9 .9
9 .1
. .
.. .
. .
3 0 .4
21.8
2 6 .2
..
___
4 6 1 .6
A
Monetary
authority
1 .0
4 3 .1
235.1
222.3
9 .5
3 .3
.........
.........
.........
.........
130.0
233.6
3 6 .5
...........
911.6
.........
4 1.1
7 .6
.........
.........
11
12
13
14
15
16
4 7.6
.........
17
.........
.........
.........
18
19
20
21
22
23
24
25
26
22.2
.........
.........
.........
27
28
29
30
31
32
18.1 ............
11.8
.3
.3
.3 ........... .........
.9
11.8
6 . 8 ......... ................... 3 .........
.........
. . . .
2 5 .0
5 0 .8 1563.5 1563.5
1 9 . 7 ............ ......... 338.8
...........
143.4
1 .1
12.8 ......... 206.0
......... 279.7
...........
171.4
......... 126.8
13.1 .........
6.1 ......... 156.9
3 1 .0
4 .1
3 1 .9
140.6
61 3.3
70.1
4 4 . 2 ...........
2 4 . 0 ............
1 5 6.0
2 2.9
2 0 0 .6
3.1
101.1
4 6 . 4 .........
.........
.........
464.6
230.8
233.7
1.5
4 .3 ...........
2 8 .2
71.1
5 .6
2 5 .5
6 .9
78.1
11.8
10.3
.........
24.4
.........
218 .9
207.5
166.6
281.6
- 5 2 .3
74.1
4 Includes savings bonds, other nonmarketable debt held by the public, issues by agencies in the budget
(CCC, Export-Import Bank, GNMA, TVA, FHA) and by sponsored credit agencies in Financial sectors,
and loan participation certificates. Postal savings system deposits are included in line 35.
5 Business asset is corporate only. Noncorporate trade credit is deducted in liability total to conform
to quarterly flow tables.
N o t e .—Data
revised from the Mar. 1971
B u l l e t in .
1971
7 Demand dep. and currency
8
Private domestic..............
9
U.S. Government............
10
Foreign.............................
27 Security credit......................
28
To brokers and dealers. .
29
To others..........................
L
Federally
sponsored
credit
agencies
73.4
3411.6 ......... 102.4 ......... 1449.1 ......... 46.5
154.6 ......... 1365.4 ........ 346.7 ......... 1363.4 .........
728.8 .......
3 G old.................................
4 Official foreign exchange...
5
6
A
Total
OF FUNDS □ JUNE
Sector
FLOW
Financial sectors
Private domestic nonfinancial sectors
FINANCIAL ASSETS AND LIABILITIES, December 31, 1970—Continued
(Amounts outstanding in billions o f dollars)
(B) Private nonbank financial institution
Sector
Transaction
category
1 Total assets................................
3 Demand deposits and currency
4 Time and savings accounts. . . .
5
At commercial banks............
6
At savings institutions..........
A
Mutual
savings
banks
Savings
and loan
assns.
Total
L
A
L
A
L
Corporate shares3 ....................
16.6 .........
1 .5 .........
1 .2 .........
1.6 233.7
. 1 .........
. 1 .........
. 1 .........
1.5 233.7 ......... 146.7 ......... 71.6
146.5
A
L
A
L
19 Security credit............................
20
To brokers and dealers........
21
O ther......................................
7.6 11.8
.9 11.8
6 .8 .........
22 Taxes payable............................
23 Trade credit...............................
24 Miscellaneous............................
4 .3 .........
28.2 71.1
. 7 .........
1 .5 .........
1.5
1 .6 .........
1.8
A
L
2 .5 .........
164.4 14.2
12.3.........
125.3
3.1
25.3.........
1 .5 .........
.................. 5
......... 10.6
Other
insurance
cos.
A
5 7.9 .........
57.9
.6
Agencies
of foreign
banks
Finance
cos.
L
51.8.........
34 7
1 .4 .........
A
L
60.3
. ..
56 2
3.6 .......
A
L
6.1
1.2
5
15.4
14.5
73.6.........
4 .9 .........
.2
8 .3 .........
37.3
20.6.........
1.2
1 3.3......... 173.9
4 .0 .........
3 .3 .........
74 2
. 8 ......... 26.6.........
47.8.........
12 .5 .........
1 .0 ........
18.1.........
. .
Open-end
investment
cos.
Security
brokers
and dealers
A
A
A
L
28
28
10.7
3.6
8 .0 .........
1.7
8.9
22.4
37.1
3.7
4 7.4.........
6 .8 .........
2 .0 .........
3 1 .8.........
6.9 . .
1.8
14 4
1
12 0 2
19
3
4
7
9
50
34
9
7
10
11
12
13
14
15
16
17
18
6.8
11.8 19
11 8 20
21
8
39.7
29.3.........
4 .3 .........
17.4.........
7.4
.2
56.7
55.9
4.0
3.9 . . . .
22.9
5 .9 .........
31.1
19.7
4 .0 .........
47 6
L
6
16.9
.................. 8
1.7
47 6
7
.3
12 7
20.4
1.5
.3
.2
1
.5
3
72
9
43
.2
. . . ..
4.3
.
.2
34.5
47.6
21
.9
.9
.................. 1
L
57.9
64.3
29.2
4 .2 .........
61
Banks in
U.S.
possessions
68
.3
6 1
1.0
2.8
2 22
23
24
JUNE 1971 □ FLOW
613.3 70.1
44 .2 .........
24.0
156.0 22.9
200.6
3.1
101.1
4 6 .4 .........
......... 13.1
41.1 31.0
OF FUNDS
A 71.3
L
......... 122.6
......... 41.0 ......... 107.2 .........
47.6
10 Other credit mkt. instr..............
U
U.S. Govt, securities........
12
State & local govt, oblig..
13
Corp. and fgn. bonds........
14
Home mortgages...............
15
Other mortgages................
16
Consumer credit................
17
Bank loans n.e.c................
18
Other loans........................
For notes see facing page.
A
State and
local govt,
retirement
funds
Private
pension
funds
818.1 ......... 176.6 ......... 79.0......... 15.4 ......... 199.0 ......... 107.2
......... 164.6 ......... 73.3 ......... 15.4 ......... 186.9 . . . . 107.2
7 Life insurance reserves.............. ......... 122.6
8 Pension fund reserves............... ......... 206.1
9
Life
insurance
cos.
Credit
unions
A 72
U.S.
BALANCE OF PAYMENTS o J U N E 1971
1. U.S. BALANCE OF PAYMENTS
(In millions o f dollars)
1969
Item
1968
1969
1970
1970*
IV
II
III
IV*
Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted
Exports of goods and services—Total 1
Merchandise......................................
Military sales.....................................
Transportation...................................
Travel.................................................
Investment income receipts, private.
Investment income receipts, G ovt.. .
Other services....................................
Imports of goods and services—Total.
Merchandise....................................
Military expenditures......................
Transportation.................................
Travel...............................................
Investment income payments.........
Other services..................................
50,622
33,588
1,395
2,969
1,775
6,922
765
3,208
55,514
36,473
1,515
3,131
2,058
7,906
932
3,498
62,962
42,041
1,479
3,665
2,318
8,706
911
3,844
14,767
9,890
352
803
518
2,083
231
890
15,364
10,252
256
877
560
2,259
240
920
15,798
10,586
430
926
576
2,066
241
973
15,969
10,700
339
950
589
2,170
224
997
15,831
10,503
454
912
593
2,211
206
952
-48,129
-32,964
-4 ,5 3 5
-3 ,2 6 9
-3 ,0 2 2
-2 ,9 3 3
-1 ,4 0 6
-53,564
-35,835
-4 ,8 5 0
-3 ,6 0 8
-3 ,3 9 0
-4 ,4 6 3
-1 ,4 1 9
-59,291
-39,856
-4 ,8 3 7
-4 ,0 3 2
-3 ,9 1 6
-5 ,1 0 9
-1 ,5 4 0
-14,075
-9 ,4 0 4
-1 ,2 4 5
-967
-8 4 0
-1 ,2 4 7
-3 7 2
-14,518
-9 ,7 2 9
-1 ,1 7 8
-978
-925
-1 ,3 4 3
-365
-14,759
-9 ,8 2 9
-1 ,2 5 5
-979
-988
-1 ,3 2 0
-388
-14,969
-9 ,9 8 7
-1 ,2 1 0
-1 ,0 7 3
-1 ,0 2 6
-1 ,2 8 7
-386
-15,047
-10,311
-1 ,1 9 5
-1,001
-977
-1 ,1 6 0
-403
Balance on goods and services1.
2,493
1,949
3,672
692
846
1,039
1,000
784
Remittances and pensions..........
-1 ,1 2 1
-1 ,1 9 0
-1 ,3 8 7
-3 0 9
-3 2 8
-3 6 0
-3 6 4
-3 3 6
1. Balance on goods, services, remittances and pen
sions.........................................................................
1,372
759
2,285
383
518
679
636
448
2. U.S. Govt, grants and capital flow, net..................... -3 ,9 7 5
Grants,2 loans, and net change in foreign cur
rency holdings, and short-term claims............. -5 ,3 5 9
1,114
Scheduled repayments on U.S. Govt, loans........
269
Nonscheduled repayments and selloffs.................
-3 ,8 2 8
-3 ,2 3 5
-8 7 0
-8 5 5
-725
-8 0 4
-8 5 2
-5 ,0 3 2
1,291
-8 7
-4 ,9 5 4
1,475
244
-1 ,1 8 3
324
3-11
-1,278
335
88
-1,237
398
114
-1,192
386
2
-1 ,2 4 8
356
40
-5 ,4 1 2
-3 ,2 0 9
-1 ,2 5 4
-5 ,2 3 3
-3 ,0 7 0
-1 ,4 9 4
-6 ,3 5 1
-3 ,9 6 7
-878
-8 8 9
-276
-6 9
-1,711
-1,411
-133
-1,944
-1,434
66
-1,176
-711
-549
-1 ,5 1 8
-4 1 0
-261
358
-2 2 0
330
-4 2 4
201
-589
35
-2 4 9
24
-381
61
-1 3
23
-132
93
-6 3
-1 0 5
-9 8 2
-871
296
-1 ,0 8 4
-3 4
-371
41
108
82
-538
-8 6
118
75
-7 7 2
-105
4. Foreign capital flow, net, excluding change in liquid
assets in the United States..............................
Long-term investments......................................
Short-term claims...............................................
8,701
6,029
759
4,131
3,959
76
3,861
3,060
704
1,635
1,276
-1 9
585
788
93
1,317
612
165
1,064
867
211
897
794
235
Nonliquid claims on U.S. Govt, associated with—
Military contracts...............................................
U.S. Govt, grants and capital...........................
Other specific transactions.................................
Other nonconvertible, nonmarketable, mediumterm U.S. Govt, securities4...............................
-105
2
6
156
-1 6
-2
-583
-3 0
-1 2
229
*
-1
-2 0
-9
-2 5
-2 5 4
-1 7
11
-6 6
-3
-2 0
-244
*
22
2,010
-4 1
723
150
-242
800
75
90
217
217
217
216
162
-205
-7 7 9
-535
245
-1,666
-113
-1,553
-1,452
-2 0
-1,432
-817
822
-1,639
-7 8 0
-689
-9 1
3. U.S. private capital flow, net...................
Direct investments.................................
Foreign securities..................................
Other long-term claims reported by—
Banks..................................................
Others................................................
Short-term claims reported by—
Banks..................................................
Others................................................
5. Allocation of Special Drawing Rights.
6. Errors and unrecorded transactions...
867
-514
-2,841
-1,274
Balances
A. Balance on liquidity basis 5
Seasonally adjusted (Equals sum of items 1-4+6.)
Less: Net seasonal adjustments............................
Before seasonal adjustment....................................
B. Balance on basis of official reserve transactions5
Balance A, seasonally adjusted..............................
Plus: Seasonally adjusted change in liquid assets
in the United States of—
Commercial banks abroad.................................
Other private residents of foreign countries. . .
International and regional organizations other
than I M F ........................................................
Less: Change in certain nonliquid liabilities to
foreign central banks and govts.........................
Balance B, seasonally adjusted...
Less: Net seasonal adjustments.
Before seasonal adjustment.........
MEMO—Balances including SDR allocation
Balance A, Seasonally adjusted6.................
Balance A, Before seasonal adjustment. . . .
Balance B, Seasonally adjusted....................
Balance B, Before seasonal adjustment.......
For notes see end o f table.
171
-7,012
-4 ,7 1 5
171
-7 ,0 1 2
-4 ,7 1 5
420
-6 2 4
1,044
171
-7 ,0 1 2
-4 ,7 1 5
420
-1,666
-1,452
-8 1 7
-7 8 0
3,387
375
9,217
-441
-6,511
92
149
-131
-1,862
-1 5 2
-111
192
-1,396
-148
-3,142
200
48
-6 0
177
-6 6
142
-125
83
77
2,340
-996
-271
-1 4 2
-4 2 0
501
-2 4 6
-1 0 6
1,641
2,700
-10,686
1,641
2,700
-10,686
514
-311
825
-3,118
-285
-2,833
-1,997
72
-2,069
-2,032
580
-2,612
-3,539
-367
-3,172
-1,449
-686
-2,901
-1,966
-1,235
-1,432
-1,780
-2,069
-6 0 0
-1,639
-1,815
-2,612
-5 6 4
-9 1
-3,323
-3,172
-3,848
-9 ,8 1 9
JU N E 1971 o U.S. BALANCE OF PAYM ENTS AND FOREIGN TR A D E
A 73
1. U.S. BALANCE OF PAYMENTS— Continued
(In millions of dollars)
1969
Item
1968
1970
1969
1970
p
IV
I
II
III
IV p
51,553
1,432
1,639
91
Transactions by which balances were settled—Not seasonally adjusted
A. To settle balance on liquidity basis...........................
Change in U.S. official reserve assets (in
crease, —) ............................................................
-171
7,012
54,715
-1 ,0 4 4
-8 8 0
- 1 ,1 8 7
3,344
-1 5 4
481
1,022
801
1,040
Gold.....................................................................
SDR’s ..................................................................
IMF gold tranche position.................................
Convertible currencies........................................
1,173
-967
-695
-8 7 0
-1 ,1 8 3
-1 ,0 3 4
814
787
16
389
2,152
-5 4 2
1,083
-4 4
—53
-253
831
14
-3 7
227
818
395
-3 4
406
34
422
140
9
469
Change in liquid liabilities to all foreign accounts ..
709
8,199
1,371
-8 9 0
1,072
410
838
-9 4 9
-1 0
-3 7 9
-163
-7 9
-1 2 6
-3 9
-2 1 2
-6 7
-1 2 6
-3
17
20
-7 3
-2 ,7 0 9
-3
3,387
375
-2 6 4
-1 1
9,217
-441
8,231
-453
-6,511
92
-2 2 7
2,902
-9
-1 ,6 8 2
-1 5 2
522
2,452
-423
-1 ,1 4 6
-148
2,355
-2 1
-3 ,4 8 7
200
Foreign central banks and govts.:
Convertible nonmarketable U.S. Govt.
securities 7....................................................
Marketable U.S. Govt, bonds and notes7 ...
Deposits, short-term U.S. Govt, securities,
etc..................................................................
IMF (gold deposits)............................................
Commercial banks abroad.................................
Other private residents of foreign countries---International and regional organizations other
than IM F .........................................................
B. Official reserve transactions.......................................
Change in U.S. official reserve assets (in
crease, —) ............................................................
Change in liquid liabilities to foreign central
banks and govts., and IM F (see detail above
under A.).............................................................
Change in certain nonliquid liabilities to foreign
central banks and govts, of —
U.S. private organizations.............................
U.S. Govt.........................................................
-1 8 7
-131
*
-1 9 6
192
48
-6 0
177
-6 6
142
-125
83
77
-1 ,6 4 1
-2 ,7 0 0
510,686
-8 2 5
52,833
2,069
2,612
3,172
-8 8 0
-1 ,1 8 7
3,344
-1 5 4
481
1,022
801
1,040
-3,101
-517
7,613
-5 0 6
2,764
539
2,049
2,261
534
1,806
-8 3 4
-1 6 2
-8 0 6
535
-2 0 6
41
-1 5 4
-2 5 8
-235
743
-233
-5
-1 8 4
55
1 Excludes transfers under military grants.
2 Excludes military grants.
3 Negative entry reflects repurchase of foreign obligations previously
sold.
4 Includes certificates sold abroad by Export-Import Bank.
5Excludes initial allocation by the IM F of $867 million of SDR’s on
Jan. 1, 1970.
6 Equals sum of items 1-6.
7 With original maturities over 1 year.
N o t e .—Dept, of Commerce data. Minus sign indicates net payments
(debits); absence of sign indicates net receipts (credits). Details may not
add to totals because of rounding.
2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions of dollars)
Export surplus
Exports ]
Period
1971
1968
1969 r
1970
3 2,002
3 2,672
3 2,982
3 3,183
3 3,257
33,152
3,074
3,163
3.078
3,192
3,180
3.078
3,223
3,278
3,218
3,263
3,338
3,266
3,255
3,346
3.428
3,501
3.428
3,404
3,686
3,553
3,569
3,758
127
184
-1 5 0
251
-1 5
78
133
78
261
-1 0 5
89
70
159
-4 0 6
206
135
11
27
108
203
263
150
218
202
183
269
158
146
323
465
444
246
125
188
71
166
49
136
245
-215
7,867
8,151
8,548
8,527
7,655
9,591
9,315
9,450
9,719
9,867
10,029
10,333
10,808
161
314
471
53
-4 0
174
574
570
609
933
816
425
432
33,226
36,043
39,963r
837
1,289
2,699
1969 r
1970
1971
2,814
2,775
3 2,439
3 2,855
2,740
2,870
2,858
3 2,950
3 3,211
3 2,631
2,972
2,977
32,161
3 2,266
3 3,188
33,318
3 3,268
33,179
3,182
3,366
3.341
3.342
3,398
3,280
3,406
3,547
3,376
3,409
3,661
3,730
3,699
3,592
3,553
3,689
3,499
3,570
3,735
3,690
3,815
3,543
2,687
2,592
3 2,589
3 2,604
2,755
2,792
2,725
2,872
2,951
2,736
2,883
2,908
Quarter
1 ....
1 1 ...
111...
I V ...
8,028
8,465
9,019
8,580
7,615
9,765
9,889
10,020
10,328
10,800
10,845
10,758
11,240
Year4. .
34,063
37,332
42,662'
M onth:
Jan ...
Feb..
Mar..
Apr..
May.
June.
Ju ly .,
Aug..
Sept..
O ct..
Nov..
Dec..
1968
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
1970
1968
3 Significantly affected by strikes.
4 Sum of unadjusted figures.
N o t e .—Bureau of the Census data. Details may not add to totals be
cause of rounding.
A 74
U.S. GOLD TR A N SA C TIO N S □ J U N E 1971
3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
AND INTERNATIONAL ORGANIZATIONS
(Net sales ( —) or net acquisitions; in millions o f dollars at $35 per fine troy ounce)
1970
Area and country
1962
1963
1964
1965
1966
1967
1968
1969
1971
1970
III
Western Europe:
A ustria.............................
Belgium.............................
France...............................
Germany, Fed. Rep. of. .
Ireland...............................
Italy...................................
Netherlands......................
Spain.................................
Switzerland.......................
United Kingdom..............
Bank for Intl. Settlements.
Other.................................
-1 4 3
-6 3
-4 5 6
-1 4 6
-3 8 7
190
T otal..................
’329
-6 0
-3 2
-8 1
618
-1 2
Canada . . . .
Asia:
Iraq ................
Japan..............
Lebanon........
Malaysia........
Philippines. . .
Saudi A rabia.
Singapore. . . .
Other..............
-1 3 0
102
-1 ,1 0 5
T o ta l.
-5 i8
-5 5
-4 0
-4 0 5
-2 2 5
-1
200
T otal.
Latin American republics:
Argentina ......................
Brazil...............................
Colombia........................
Venezuela........................
Other...............................
-8 2
-3 9 9
-100
-2 5
-8 3
-8 8 4
-6 o i
-2
-2
-8 0
-3 5
-180
-5 0
150
-8 5
-5 2
-2 0 9
-1 9
-3 0
-8 7 9
-5 0
-8 3 5
-2 9
-1 ,2 9 9
-6 5 9
-9 8 0
-6 6 9
969
-2 0 4
200
150
50
17
-10
-4 1
-4
-5 6
-11
-4 7
-13
-2 9
-8 0
-9
-4
-66
-131
-9
-4
-111
-4 2
-1 4
-2 2
-86
-4 4
-3 6 6
-2 2
-166
3 -6 8
-6 0 8 - 1 ,0 3 1
-1 ,1 1 8
-1
-3 9 2
- 3 6 -1,3 2 2
-833
-392
-3 6 - 1 ,5 4 7
-1 6
6-225
Intl. Monetary Fund5. .
-2 3
-2 3
-119
-14
-833
-8
11
-9 1
2 23
-1
-2 1 3
24
-1
-1
-8 1
-1
957
4-631
-9
42
22
-3
10
-1 5 6
-1,121
967
-7 8 7
1 Includes purchase from Denmark of $25 million.
2 Includes purchase from Kuwait of $25 million.
3 Includes sales to Algeria of $150 million in 1967 and $50 million in
1968.
4 Data for IM F include the U.S. payment of $385 million increase in
its gold subscription to the IM F 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 IM F quota payments. Such U.S. sales to countries
and resales to the United States by the IMF total $548 million each.
-1 1 9
40
-431 - 1 , 0 0 9
177
15
-8 5
-5 4
-2 4
All other........................
-2 1
-1 8 0
-6 5
-21
25
-2 7
-2 5
-9 5
-3 4
9
-5 0
-8 1
-7 5
-1
-1
-2 5
' “J i
-2 5
'-7 5
200
11
-3 2
-9 3
-3 0
-4 7
-6
56
-1 2 9
-2 5
16
-5
32
-129
-4 9
-3 9
-3
7
175
325
500
41
-7 6
-3 5
Total foreign countries.
Grand total........
-5 8
600
IV
-4 1
-2
-1 4
-1 4
- i
-7 1
21
-1 9 7
-1 5
-7 5
-7 3
-35
4 -5 6 3
-322
4142
-395
-4 2 2
-1
-102
-7
-1 0 9
5 Includes IM F 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 4), and withdrawal of deposits. The
first withdrawal, amounting to SI7 million, was made in June 1968.
IMF sold to the United States a total of $800 million of gold ($200
million in 1956, and $300 million in 1959 and in 1960) with the right of
repurchase; proceeds from these sales invested by IMF in U.S. Govt,
securities. In Sept. 1970 IM F repurchased $400 million.
6 Payment to the IMF of $259 million increase in U.S. gold subscription
less gold deposits by the IMF.
Notes to Table 5 on opposite page:
1 Represents net IMF sales of gold to acquire U.S. dollars for use in
IMF operations. Does not include transactions in gold relating to gold
deposit or gold investment (see Table 6).
2 Positive figures represent purchases from the IMF of currencies of
other members for equivalent amounts of dollars; negative figures repre
sent repurchase of dollars, including dollars derived from charges on
purchases and from other net dollar income of the IMF. The United
States has a commitment to repurchase within 3 to 5 years, but only to
the extent that the holdings of dollars of the IMF exceed 75 per cent of
the U.S. quota. Purchases of dollars by other countries reduce the U.S.
commitment to repurchase by an equivalent amount.
3 Includes dollars obtained by countries other than the United States
from sales of gold to the IMF.
4 Represents the U.S. gold tranche position in the IMF (the U.S.
quota minus the holdings of dollars of the IMF), which is the amount
that the United States could purchase in foreign currencies automatically
if needed. Under appropriate conditions, the United States could pur
chase additional amounts equal to its quota.
5 Includes $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 IM F from June 1965 through Jan. 1966, this gold sub
scription was included in the U.S. gold stock and excluded from the
reserve position.
6 Includes $30 million of special drawing rights.
N o t e .—The initial U.S. quota in the IMF was $2,750 million. The U.S.
quota was increased to $4,125 million in 1959, to $5,160 million in Feb.
1966, and to $6,700 million in Dec. 1970. Under the Articles of Agreement,
subscription payments equal to the quota have been made 25 per cent in
gold and 75 per cent in dollars.
JU N E 1971 o U.S. RESERVE ASSETS; POSITION IN T H E IMF
A 75
4. U.S. RESERVE ASSETS
(In millions of dollars)
Gold stock1
End of
year
Total
1 9 5 8 ...
1 959...
1 960...
19 6 1 ...
1962...
1963...
196 4 ...
1 9 6 5 ...
Con
vertible
foreign
curren
cies
Gold stock1
Reserve
position
in
IM F 3
Total2
Treasury
22,540
21,504
19,359
20,582
19,507
17,804
20,534
19,456
17,767
18,753
17,220
16,843
16,672
15,450
16,947
16,057
15,596
15,471
613,806
16,889
15,978
15,513
15,388
613,733
116
99
212
432
781
1,690
1,064
1,035
769
6 863
1 9 6 6 ... 14,882
14,830
19 6 7 ...
15,710
1968...
1 9 6 9 ... 7 16,964
14,487
1 9 7 0 ...
13,235
12,065
10,892
11,859
11,072
13,159
11,982
10,367
10,367
10,732
1,321
2,345
3,528
72,781
629
326
420
1,290
2,324
1,935
End of
month
SDR’s 4
1,958
1,997
1,555
851
Total2
Treasury
Con
vertible
foreign
curren
cies5
Total
Reserve
position
in
IM F 3
SDR’s4
1970
M ay...
June. ..
July. . .
Aug....
Sept....
Oct.. . .
N ov....
D ec....
16,165
16,328
16,065
15,796
15,527
15,120
14,891
14,487
11,900
11,889
11,934
11,817
11,494
11,495
11,478
11,072
11.367
11.367
11.367
11.367
11,117
11,117
11,117
10,732
980
1,132
716
695
1,098
811
640
629
2,360
2,350
2,454
2,323
1,944
1,823
1,812
1,935
925
957
961
961
991
991
961
851
1971
Jan ... .
Feb... .
Mar__
Apr.. ..
May...
14,699
14,534
14,342
14,307
13,802
11,040
11,039
10,963
10,925
10,568
10,732
10,732
10,732
10,732
10,332
491
327
256
257
318
1,700
1,700
1,680
1,682
1,678
1 ,468
1,468
1,443
1,443
1,238
5 For holdings of F.R. Banks only, see pp. A-12 and A-13.
6 Reserve position includes, and gold stock excludes, $259 million gold
subscription to the IM F in June 1965 for a U.S. quota increase which
became effective on Feb. 23, 1966. In figures published by the IM F from
June 1965 through Jan. 1966, this gold subscription was included in the
U.S. gold stock and excluded from the reserve position.
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.
1 Includes (a) gold sold to the United States by the International Mon
etary Fund with the right of repurchase, and (b) gold deposited by the
IM F to mitigate the impact on the U.S. gold stock of foreign purchases
for the purpose of making gold subscriptions to the IM F under quota
increases. For corresponding liabilities, see Table 6.
2 Includes gold in Exchange Stabilization Fund.
3 The United States has the right to purchase foreign currencies 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. See Table 5.
4 Includes initial allocation by the IMF of $867 million of Special Draw
ing Rights on Jan. 1, 1970, and second allocation of $717 million of
SDR’s on Jan. 1, 1971, plus net transactions in SDR’s.
N o t e .—See Table 23 for gold held under earmark at F.R. Banks for
foreign and international accounts. Gold under earmark is not included
in the gold stock of the United States.
5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND
(In millions of dollars)
Transactions affecting IM F holdings of dollars
(during period)
Transactions by
other countries
with IMF
U.S. transactions with IM F
Period
Payments
of
subscrip
tions in
dollars
1946—1957.
1958—1963.
1964—1966.
1967.
1968.
1969.
1970.
1970—May.
June.
July..
Aug..
Sept..
Oct..
Nov..
Dec..
1971—Jan.. ,
Feb..
Mar..
A pr..
May.
For notes see opposite page.
Net
gold
sales
by IM F i
2,063
1,031
776
600
150
1,155
22
6712
Transac
tions in
foreign
curren
cies 2
1,640
-8 4
"150
150
1,155
6 132
129
104
315
250
IM F holdings
of dollars
(end of period)
U.S.
reserve
position
in IMF
(end of
period) 4
Total
change
Amount
Per cent
of
U.S.
quota
827
2,740
6
775
2,315
1,744
775
3,090
4,834
28
75
94
1,975
1,035
5326
-1 1 4
-806
-1,343
-8 5 4
268
741
-9 4
-8 7 0
-1 ,0 3 4
1,929
4,740
3,870
2.836
4.765
92
75
55
71
420
1,290
2,324
1.935
5
2
1
10
-3
1
-1
-2
-139
-2 0
-1 6
-3 4
-9 5
-7 3
7
33
150
253
29
1
21
150
10
-1 0 4
131
379
121
11
1,417
2,800
2,810
2,706
2.837
3,216
3,337
3,348
4.765
54
54
52
55
62
65
65
71
2,360
2,350
2,454
2,323
1,944
1,823
1,812
1.935
-3
-2 3
11
*
20
1
7
235
5.000
5.000
5,020
5,018
5,022
75
75
75
75
75
1.700
1.700
1,680
1,682
1,678
IMF net
income
Purchases
of
dollars 3
Re
purchases
in
dollars
-45
60
45
-2,670
-1,666
-723
20
20
19
25
-3
-2
20
-2
4
A 76
INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S. □ J U N E 1971
6. U.S. LIQUID LIABILITIES TO FOREIGNERS
(In millions of dollars)
Liabilities to foreignt countries
Liabilities to Intl.
Monetary Fund arising
from gold transactions
End
of
period
Official institutions 3
Total
Total
Gold
de
posit 1
Gold
invest
ment 2
Total
Short M arket
term
able
liabil
U.S.
ities re Govt,
ported
bonds
by
and
banks notes
4
in U.S.
Banks and other foreigners
Non
market
able
convert
ible
U.S.
Treas
ury
bonds
and
notes
Total
Short Market
term
able
liabil
U.S.
ities re Govt,
ported
bonds
by
and
banks notes
4
in U.S.
Liabilities to non
monetary inti, and
regional organizations 5
Total
Short Market
term
able
liabil
U.S.
ities re Govt,
ported
bonds
by
and
banks notes
4
in U.S. 6
1957........... 7 15,825
1958. . . 7 16,845
1959 . . 19,428
200
200
500
200
200
500
10,120
7,917
8,665
9,154
966
7,618
5,724
5,950
7,077
541
1,190
542
552
530
660
1960 8........
/20,994
\21,027
800
800
800
800
11,078
11,088
10,212
10,212
866
876
7,591
7,598
7,048
7,048
543
550
1,525
1,541
750
750
775
791
1961 8........
J22,853
\22,936
800
800
800
800
11,830
11,830
10,940
10,940
890
890
8,275
8,357
7,759
7,841
516
516
1,948
1,949
703
704
1 245
1J245
1962 8........
J24,068
\24,068
800
800
800
800
12,748
12,714
11,997
11,963
751
751
8,359
8,359
7,911
7,911
448
448
2,161
2,195
1,250
1,284
911
911
1Q£'l ft
/26,361
\26,322
800
800
800
800
14,387
14,353
12,467
12,467
1,217
1,183
703
703
9,214
9,204
8,863
8,863
351
341
1,960
1,965
808
808
1,152
1,157
1Q£A ft
/28,951
\29,002
800
800
800
800
15,428
15,424
13,224
13,220
1,125
1,125
1,079
1,079
11,001
11,056
10,625
10,680
376
376
1,722
1,722
818
818
904
904
29,115
834
34
800
15,372
13,066
1,105
1,201
11,478
11,006
472
1,431
679
752
800
800
13,600
13,655
12,484
12,539
860
860
256
256
14,387
14,208
13,859
13,680
528
528
906
905
581
580
325
325
1965...........
1Q££ ft
(29,904
129,779
1,011
1,011
211
211
1l yof 0........
ft
/3 3,271
\33,119
1,033
1,033
233
233
800
800
15,653
15,646
14,034
14.027
908
908
711
711
15,894
15,763
15,336
15,205
558
558
691
677
487
473
204
204
1lyoo
Q£Q >........
0
/33,828
\33,614
1,030
1,030
230
230
800
800
12,548
12,481
11,318
11,318
529
462
701
701
19,525
19,381
18,916
18,916
609
465
725
722
683
683
42
39
1969Tirt/* ft 1ftv /41,776
jjec.
|41,900
1,019
1,019
219
219
800
800
11,992
11,994
11,054
11,056
383
383
555
555
28,106
28,224
27,577
27,695
529
529
659
663
609
613
50
50
1970-Mar...
Apr.r.
Mayr .
Juner .
July*"..
Aug.r .
Sept.r.
Oct. r .
Nov . r.
Dec.r .
42,972
43,359
43,223
43,380
43,509
44,008
44,216
44,261
44,488
43,277
1,010
1,010
1,010
1,010
1,010
1,010
587
587
579
566
210
210
210
210
210
210
187
187
179
166
800
800
800
800
800
800
400
400
400
400
14,767
14,414
14,797
15,306
16,602
16,622
17,778
18,131
19,965
20,066
13,958
13,605
13,986
14,480
15,756
15,776
16,932
17,376
19,210
19,293
380
380
382
397
417
417
417
326
326
344
429
429
429
429
429
429
429
429
429
429
26,390
27,170
26,713
26,383
25,139
25,533
25,088
24,730
23,159
21,803
25,914
26,685
26,212
25,847
24,597
24,971
24,521
24,165
22,573
21,164
476
485
501
536
542
562
567
565
586
639
805
765
703
681
758
843
763
813
785
842
755
714
652
629
705
798
717
768
738
817
50
51
51
52
53
45
46
45
47
25
1971—Jan.
Feb..
Mar.®
43,785
44,110
45,529
559
559
559
159
159
159
400
400
400
20,500
22,287
24,832
19,727
21,509
24,054
344
349
349
429
429
429
21,675
20,288
19,028
20,989
19,604
18,355
686
684
673
1,051
976
1,110
1,027
935
970
24
41
140
1 Represents liability on gold deposited by the International Monetary
Fund 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 in
creases.
2 U.S. Govt, 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. Upon termination of investment, the
same quantity of gold can be reacquired by the IMF.
3 Includes Bank for International Settlements and European Fund.
4 Derived by applying reported transactions to benchmark data;
breakdown of transactions by type of holder estimated for 1960-63.
Includes securities issued by corporations and other agencies of the U.S.
Govt, that are guaranteed by the United States.
5 Principally the International Bank for Reconstruction and Develop
ment and the Inter-American Development Bank.
6 Includes difference between cost value and face value of securities in
IMF gold investment account. Liabilities data reported to the Treasury
include the face value of these securities, but in this table the cost value of
the securities is included under “Gold investment.” The difference, which
amounted to $19 million at the end of 1970, is included in this column.
7 Includes total foreign holdings of U.S. Govt, bonds and notes, for
which breakdown by type of holder is not available.
* Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable with those
shown for the preceding date; figures on the second line are comparable
with those shown for the following date.
9 Data included on the first line for holdings of marketable U.S. Govt,
securities are based on a July 31, 1963, benchmark survey of holdings and
regular monthly reports of securities transactions (see Table 16). Data in
cluded on the second line are based on a benchmark survey as of Nov. 30,
1968, and the monthly transactions reports. For statistical convenience,
the new series is introduced as of Dec. 31, 1968, rather than as of the
survey date.
The difference between the two series is believed to arise from errors in
reporting during the period between the two benchmark surveys, from
shifts in ownership not involving purchases or sales through U.S. banks
and brokers, and from physical transfers of securities to and from abroad.
It is not possible to reconcile the two series or to revise figures for earlier
dates.
10 Includes $17 million increase in dollar value of foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969.
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
to statistics following in this section, except for 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 United
States notes held by other international and regional organizations.
The liabilities figures are used by the Dept, of Commerce in the statistics
measuring the U.S. balance of international payments on the liquidity
basis; however, the balance of payments statistics include certain adjust
ments to Treasury data prior to 1963 and some rounding differences, and
they may differ because revisions of Treasury data have been incorporated
at varying times. The table does not include certain nonliquid liabilities
to foreign official institutions that enter into the calculation of the official
reserve transactions balance by the Dept, of Commerce.
J U N E 1971 □ INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.
A 77
7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions of dollars)
Total
foreign
countries
End of period
Western
Europe 1
Canada
Latin
American
republics
Asia
Africa
Other
countries 2
15,646
/ 12,548
\ 12,481
1969—Dec.............................................................................. 411,994
9,872
7,009
7,001
5,860
996
533
532
495
1,131
1,354
1,354
1,681
3,145
3,168
3,122
3,190
249
259
248
546
253
225
224
222
Dec...............................................................................
14,767
14,414
14,797
15,306
16,602
16,622
17,778
18,131
19,965
20,066
7,394
6,942
7,311
8,064
9,569
9,674
11,171
11,589
13,254
13,046
590
733
762
500
527
690
620
575
637
662
2,094
2,101
2,066
2,109
2,102
1,987
1,738
1,767
1,646
1,536
3,780
3,668
3,632
3,571
3,331
3,189
3,254
3,336
3,639
4,060
705
725
744
710
691
692
661
526
449
407
204
245
282
352
382
390
334
338
340
355
1971—Jan................................................................................
Feb...............................................................................
Mar.?...........................................................................
20,500
22,287
24,832
13,702
15,382
17,149
678
727
801
1,370
1,341
1,218
4,046
4,169
5,004
381
325
242
323
343
418
1970 Mar..............................................................................
Apr..............................................................................
May.............................................................................
June.............................................................................
July..............................................................................
Aug..............................................................................
Sept..............................................................................
Oct...............................................................................
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 6.
4 Includes $17 million increase in dollar value of foreign currency
abilities resulting from revaluation of the German mark in Oct. 1969.
N o t e .—Data represent short-term liabilities to the official institutions
of foreign countries, as reported by banks in the United States, and foreign
official holdings of marketable and convertible nonmarketable U.S. Govt,
securities with an original maturity of more than 1 year.
8. SHORT TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonmonetary international
and regional organizations 5
To all foreigners
Payable in dollars
End of period
Payable
in
foreign
cur
rencies
Deposits
IMF
gold
invest
ment4
Total
U.S.
Treasury
bills and
Demand Time2 certifi
cates
Other
short
term
liab.3
Total
U.S.
Treasury
bills and
Demand Time 2 certifi
cates
Other
short
term
liab. 3
1968.............................. 31,717
/40,040
19696 r
\4 0 ,164
31,081
39,611
39,735
14,387
20,430
20,436
5,484
6,834
6,967
6,797
5,015
5,015
4,413
7,332
7,317
636
429
429
800
800
800
683
609
613
68
57
62
113
83
83
394
244
244
108
224
223
1970—Apr . r ................
Mayr ................
Juner ................
Julyr..................
Aug. r ................
Sept. r ...............
O ct.r.................
Nov.r ...............
D ec.r ................
41,804
41,650
41,756
41,858
42,345
42,570
42,709
42,921
41,674
41,442
41,299
41,418
41,514
42,008
42,213
42,359
42,578
41,306
18,724
18,139
18,091
17,220
17,432
17,234
17,041
15,833
15,793
7,031
7,287
7,278
7,187
7,249
7,248
7,082
6,725
5,897
7,164
7,564
8,159
9,103
9,845
10,856
11,665
13,651
14,110
8,523
8,309
7,890
8,004
7,482
6,875
6,571
6,369
5,506
362
351
338
344
337
357
350
343
368
800
800
800
800
800
400
400
400
400
714
652
629
705
798
717
768
738
817
92
70
83
73
66
73
68
68
69
128
132
119
131
137
135
144
137
156
237
226
194
218
252
179
188
148
211
258
224
232
284
343
330
368
385
381
1971—Jan.r..................
Feb.....................
M ar.P...............
Apr.P................
42,143
42,448
43,779
45,951
41,765
42,038
43,127
45,314
14,751
13,455
11,803
10,407
5,694
5,486
5,165
4,959
14,440
16,361
18,664
22,298
6,880
6,736
7,495
7,650
378
410
652
637
400
400
400
400
1,027
935
970
1,100
115
64
73
63
151
145
164
194
273
279
242
206
488
447
491
637
Deposits
Total i
For notes see the following page.
A 78
INTL. CAPITAL TR A N SA C TIO N S OF T H E U.S. □ J U N E 1971
8. SHORTTERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE— Continued
(Amounts outstanding; in millions of dollars)
To residents of foreign countries
To official institutions 7
Payable in dollars
End of period
Total
Deposits
Demand
Time2
U.S.
Treasury
bills and
certifi
cates
Payable in dollars
Other
short
term
liab.3
Payable
in
foreign
cur
rencies
Total
Deposits
Demand
Time2
U.S.
Treasury
bills and
certifi
cates
Other
short
term
liab.3
Payable
in
foreign
currencies
196 8
1969 6 ' ........
30,234
38,631
38,751
14,320
20.372
20.373
5,371
6,751
6,884
5,602
3.971
3.971
4,304
7,109
7,094
636
429
429
11,318
11.054
11,056
2,149
1.918
1.919
1,899
2.951
2.951
5,486
3.844
3.844
1,321
2.139
2.140
463
202
202
1970—Apr.
May r
June r
July
Aug.r.
Sept.r ,
O ct.r .
Nov.r ,
Dec.r .
40,290
40,198
40,327
40,353
40,747
41,453
41,541
41,783
40,457
18,632
18,069
18,008
17,147
17,366
17,161
16,972
15,764
15,724
6,902
7,155
7,158
7,056
7.112
7.113
6,938
6,588
5,741
6,127
6,538
7,166
8,086
8,793
10,277
11,077
13,103
13,498
8,266
8,085
7,657
7,720
7,138
6,545
6,204
5,984
5,126
362
351
338
344
337
357
350
343
368
13,605
13,986
14,480
15,756
15,776
16,932
17,376
19,210
19,293
1,300
1,340
1,421
1,576
1,249
1,369
1,444
1,367
1,629
3,372
3,426
3,475
3.502
3,612
3.440
3,178
2,851
2,568
6,035
6,417
7,020
7,946
8,653
10,141
10,919
12,967
13,354
2,750
2,655
2,416
2,584
2,114
1,834
1,687
1,877
1,594
148
148
148
148
148
148
148
148
148
1971—Jan.r.
Feb.. .
Mar.p,
Apr.P,
40,716
41,113
42,409
44,451
14,635
13,391
11,730
10,344
5,543
5,341
5,000
4,765
13,768
15,682
18,022
21,693
6,393
6,289
7,004
7,012
378
410
652
637
19,727
21,509
24.054
26,515
1,729
1,646
1,560
1,612
2.503
2.440
2,247
2,215
13,609
15,507
17,869
20,119
1,738
1,766
1,978
2,169
148
150
400
400
To banks*
To other foreigners
Payable in dollars
End of period
Total
Deposits
Demand
Time2
U.S.
Treasury
bills and
certifi
cates
Total
Other
short
term
liab.3
Deposits
Demand
Time2
U.S.
Treasury
bills and
certifi
cates
Total
Other
short
term
liab.3
To banks
and other
foreigners:
payable in
foreign
cur
rencies
18,916
1968.......................
1969 6 r .................. 1J 27,577
27,695
14,299
23,412
23,407
10,374
16,745
16,744
1,273
1,988
1,999
30
20
20
2,621
4,658
4,644
4,444
3,939
4,062
1,797
1,709
1,710
2,199
1,811
1,934
86
107
107
362
312
312
173
226
226
1970—Apr. r ..........
May r.........
June r .........
July ' ..........
Aug.r..........
Sept.r.........
Oct. r ..........
Nov . r .........
Dec.r ..........
26,685
26,212
25,847
24,597
24,971
24,521
24,165
22,573
21,164
22,499
22,025
21,564
20,434
20,839
20,400
20,055
18,428
16,906
15,547
15,020
14,817
13,909
14,432
14,139
13,921
12,747
12,360
1,790
1,951
1,859
1,742
1,735
1,903
1,964
1,917
1,335
19
20
26
24
23
23
32
21
14
5,143
5,035
4,862
4,759
4,648
4,335
4,139
3,743
3,197
3,972
3,985
4,093
3,967
3,943
3,913
3,908
3,950
4,038
1,785
1,710
1,770
1,662
1,685
1,653
1,607
1,651
1,734
1,740
1,779
1,824
1,812
1,764
1,770
1,796
1,820
1,839
74
102
120
116
116
114
127
115
131
373
395
380
377
376
376
378
364
334
214
202
190
196
189
208
202
195
220
1971—Jan.r...........
Feb.............
Mar.p.........
Apr.P..........
20,989
19,604
18,355
17,936
16,711
15,232
14,029
13,565
11,218
10,021
8,447
6,931
1,194
1,025
889
661
29
26
24
1,458
4,271
4,161
4,669
4,516
4,048
4,112
4,073
4,133
1,689
1,724
1,724
1,801
1,845
1,877
1,865
1,890
130
148
129
116
385
362
356
326
230
260
253
238
1 Data exclude “holdings of dollars” of the International Monetary
Fund.
2 Excludes negotiable time certificates of deposit, which are included
in “Other.”
3 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates of deposit.
4 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 can be re
acquired by the IMF.
5 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.
6 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.
7 Foreign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
8 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 10. 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.
J U N E 1971 □ INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.
A 79
9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
Area and country
1970
1969
1971
Dec.
Julyr
Aug. r
Sept.r
Oct.r
Nov.r
Dec.r
Ja n .r
Feb.
Switzerland...............................................
Turkey......................................................
United Kingdom.....................................
Yugoslavia................................................
Other Western Europe1..........................
U.S.S.R.....................................................
Other Eastern Europe.............................
314
530
153
120
1,581
1,381
207
627
463
341
309
202
412
2,005
28
11,349
37
1,553
11
50
274
582
189
134
2,030
4,241
198
902
469
272
272
325
429
2,192
27
8,339
35
1,563
8
53
287
581
189
140
2,282
4,505
199
839
631
309
272
416
431
2,032
28
8,600
27
1,154
7
41
273
614
195
137
2,286
5,439
204
909
626
287
275
391
389
2,015
34
9,113
33
850
3
46
263
742
193
134
2,311
5,977
212
1,104
800
315
251
299
378
1,985
34
7,865
31
747
13
43
236
709
187
139
2,417
7,543
198
1,162
748
291
250
234
449
1,914
37
6,659
49
828
13
48
185
596
189
117
2,267
7,520
184
1,317
762
324
274
198
503
1,947
46
5,508
37
594
15
54
204
760
196
117
2,354
7,795
162
1,579
584
317
299
205
519
1,936
53
5,637
36
460
11
63
198
766
216
112
2,263
8,518
176
1,629
654
313
307
203
541
2,011
51
5,210
46
377
9
56
194
769
220
114
2,344
9,568
140
1,766
744
364
319
184
577
2,021
32
4,778
41
368
12
53
191
779
219
115
2,297
10,316
145
1,903
620
403
298
201
631
2,144
25
5,086
33
339
22
45
Total..................................................
21,674
22,534
22,971
24,118
23,694
24,112
22,637
23,284
23,656
24,608
25,812
Canada..........................................................
4,012
3,646
3,827
3,787
4,529
4,213
4,016
3,663
3,624
3,399
3,254
Mexico......................................................
P anam a....................................................
Peru..........................................................
Uruguay....................................................
Venezuela..................................................
Other Latin American republics.............
Bahamas and Bermuda...........................
Netherlands Antilles and Surinam.........
Other Latin America...............................
416
425
400
261
7
849
140
240
111
691
576
1,405
80
34
588
544
444
275
6
896
165
210
113
637
653
1,306
84
42
581
427
429
294
7
915
166
208
108
651
638
1,189
88
37
533
398
325
282
7
846
172
221
107
630
633
1,015
95
33
605
415
359
258
6
814
169
213
104
643
619
761
91
37
560
353
327
244
7
876
173
213
108
652
604
806
96
42
539
305
265
247
7
820
158
225
117
735
620
745
98
39
508
344
256
231
7
828
163
186
125
672
617
798
92
37
517
326
252
215
8
829
177
178
125
695
614
675
95
38
522
291
258
186
8
824
173
168
119
645
609
631
101
49
506
301
259
191
7
859
185
181
120
687
601
957
105
48
Europe:
Austria......................................................
Belgium-Luxembourg..............................
Finland.....................................................
Germany..................................................
Italy........ .................................................
Netherlands..............................................
Norway.....................................................
Portugal....................................................
Latin America:
Argentina..................................................
Brazil........................................................
Chile..........................................................
Colombia..................................................
Mar.*
Apr.*
Total..................................................
5,636
5,963
5,736
5,295
5,095
5,060
4,918
4,866
4,743
4,582
5,009
Asia:
China Mainland.......................................
Hong Kong..............................................
India..........................................................
Indonesia..................................................
Israel.........................................................
Japan........................................................
Korea........................................................
Philippines................................................
Taiwan......................................................
Thailand....................................................
O ther........................................................
36
213
260
86
146
3,809
236
201
196
628
606
41
226
363
59
131
3,942
307
264
260
603
746
41
245
356
61
115
3,996
280
275
212
591
780
41
235
366
53
121
4,149
263
242
228
585
769
38
250
401
50
118
4,274
195
282
247
549
728
35
274
426
85
107
4,557
185
279
260
511
680
33
258
302
73
135
5,147
199
297
275
508
708
36
305
236
60
121
5,166
193
294
292
489
722
36
322
229
65
128
5,452
178
309
278
469
735
34
295
188
52
122
6,325
191
341
288
443
674
34
281
211
73
154
6,815
184
356
296
381
601
Total..................................................
6,417
6,942
6,952
7,053
7,134
7,401
7,936
7,913
8,201
8,951
9,384
Africa:
Congo (Kinshasa)....................................
Morocco....................................................
South Africa.............................................
U.A.R. (Egypt).........................................
Other.........................................................
87
21
66
23
505
50
33
47
24
663
30
21
49
19
684
18
14
47
19
677
17
14
53
19
566
17
10
55
20
471
14
11
83
17
395
16
7
71
16
469
13
7
71
18
334
17
8
56
15
278
19
9
74
15
268
Total..................................................
701
816
802
776
668
573
521
580
443
373
384
Other countries:
Australia...................................................
All other...................................................
282
29
418
33
428
31
389
34
390
31
392
33
389
39
376
34
398
46
453
43
567
41
Total..................................................
311
451
459
423
421
425
428
410
444
495
608
Total foreign countries...............................
38,751
40,353
40,747
41,453
41,541
41,783
40,457
40,716
41,113
42,409
44,451
International and regional:
International2...........................................
Latin American regional.........................
Other regional8........................................
1,261
100
52
1,250
143
112
1,330
150
118
848
145
124
881
175
112
873
152
113
975
131
111
1,175
162
90
1,099
165
106
1,210
158
132
1,086
156 .
93
Total..................................................
1,413
1,505
1,598
1,117
1,168
1,138
1,217
1,427
1,335
1,370
1,500
Grand total.......................................
40,164
41,858
42,345
42,570
42,709
42,921
41,674
42,143
42,448
43,779
45,951
For notes see the following page.
A 80
INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S. □ J U N E 1971
9. SHORTTERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES BY COUNTRY— Continued
(End of period. Amounts outstanding; in millions of dollars)
Supplementary data 4
1968
Area or country
1970
1969
1968
1969
1970
Area or country
Dec.
Apr.
Dec,
Apr.
Dec.
Other Western Europe:
Cyprus......................................
Iceland......................................
Ireland, Rep. o f........................
8
6
24
2
4
20
11
9
38
15
10
32
10
41
Other Latin American republics:
Bolivia.......................................
Costa Rica................................
Dominican Republic................
Ecuador....................................
El Salvador...............................
Guatemala................................
Haiti..........................................
Honduras..................................
Jamaica.....................................
Nicaragua.................................
Paraguay...................................
Trinidad & Tobago..................
66
51
69
66
82
86
17
33
42
67
16
10
65
61
59
62
89
90
18
37
29
78
18
8
68
52
78
76
69
84
17
29
17
63
13
8
76
43
96
72
79
110
19
29
17
76
17
11
69
41
99
79
75
100
16
34
19
59
16
10
Other Latin America:
British West Indies...................
25
25
30
38
33
Other Asia:
Afghanistan...............................
Burma........................................
Cambodia.................................
Ceylon.......................................
Iran............................................
Iraq............................................
6
5
2
4
41
86
8
5
2
5
44
77
16
2
1
3
35
26
15
5
1
4
41
6
4
2
4
32
1 Includes Bank for International Settlements and European Fund.
2 Data exclude “holdings of dollars” of the International Monetary
Fund but include IM F gold investment.
Dec.
Apr.
Dec.
Apr.
Other Asia—Cont.:
Jordan.........................................
Kuwait........................................
Laos............................................
Lebanon.....................................
Malaysia.....................................
Pakistan......................................
Ryukyu Islands (incl. Okinawa)
Saudi Arabia..............................
Singapore...................................
Syria............................................
Vietnam......................................
3
67
3
78
52
60
17
29
67
2
51
4
40
4
82
41
24
20
48
40
4
40
17
46
3
83
30
35
25
106
17
4
94
30
66
4
82
48
34
26
166
25
6
91
Other Africa:
Algeria........................................
Ethiopia (incl. Eritrea)..............
Ghana.........................................
Kenya.........................................
Liberia........................................
Libya..........................................
Nigeria........................................
Southern Rhodesia....................
Sudan..........................................
Tanzania.....................................
Tunisia........................................
Uganda......................................
Zambia.......................................
8
13
3
29
25
69
20
1
5
21
7
6
25
6
15
8
34
28
68
10
2
3
23
2
9
19
14
20
10
43
23
288
11
2
3
10
6
5
20
13
33
7
47
41
430
11
2
1
18
7
7
38
17
19
8
38
22
195
All other:
New Zealand.............................
17
20
16
18
25
Dec.
5
54
22
38
i06
57
7
179
7
8
10
3 Asian, African, and European regional organizations, except BIS and
European Fund, which are included in “Europe.”
4 Represent a partial breakdown of the amounts shown in the “other”
categories (except “Other Eastern Europe”).
10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
End of period
Total
To foreign countries
To
inti.
and
regional
Total
Official
institu
tions
Country or area
Other
Banks1 foreign
ers
Argen Other
Latin
tina
America
Israel
Japan
Thailand
Other
Asia
All
other
countries
1967..............................
1968..............................
1969..............................
2,560
3,166
2,490
698
777
889
1,863
2,389
1,601
1,807
2,341
1,505
15
8
55
40
40
41
251
284
64
234
257
175
126
241
41
443
658
655
218
201
70
502
651
472
89
97
124
1970—Apr.r .................
M ayr.................
Juner ................
Julyr ................
Aug.r ................
Sept.r................
Oct.r .................
Nov.r ................
Dec.r.................
2,273
2,211
2,127
2,033
1,936
1,916
1,835
1,733
1,696
844
856
847
826
838
862
844
814
787
1,429
1,355
1,280
1,208
1,097
1,054
991
919
909
1,318
1,241
1,116
1,036
928
883
820
749
695
64
64
116
118
118
119
119
118
160
46
50
48
54
51
53
52
52
54
25
25
25
25
25
25
25
13
13
210
217
216
198
145
147
147
143
138
6
6
6
7
7
7
7
7
6
636
619
576
523
499
477
466
416
385
49
28
28
28
22
11
9
8
8
376
328
242
237
204
190
140
138
122
127
132
187
191
194
197
196
193
236
1971—Jan.r.................
Feb....................
M ar.p...............
Apr.p.................
1,569
1,462
1,331
1,205
717
691
631
602
852
771
700
604
635
568
479
404
157
153
161
142
60
51
60
57
13
13
13
13
144
106
88
90
6
6
6
7
340
316
261
186
8
1
1
1
107
100
94
86
233
229
236
220
1 Excludes central banks, which are included with “Official institutions.”
A 81
J U N E 1971 o INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.
11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES
(End o f period; in millions o f dollars)
1970
1969
Area and country
Dec.
Europe:
Denmark.......................
France...........................
Netherlands..................
Norway.........................
Sweden.........................
Switzerland...................
United Kingdom..........
Other Western Europe.
Eastern Europe............
9
6
2
37
5
42
407
24
7
Apr.
May
June
6
6
2
37
5
46
359
24
7
6
6
2
37
5
45
369
24
7
July
6
6
2
37
5
44
401
24
7
6
6
2
37
5
45
396
24
7
1971
Nov.
Aug.
Sept.
6
6
2
37
5
47
411
24
7
6
6
2
37
5
49
423
24
7
5
6
2
37
5
49
424
24
7
5
6
2
37
5
49
447
24
6
3
6
2
37
5
49
499
24
6
3
6
2
37
5
48
546
25
6
Oct.
Dec.
Jan.
Mar.®
Apr.®
3
7
2
37
5
49
544
30
6
3
7
2
37
5
48
537
30
6
3
7
2
37
5
45
545
30
6
Feb.
T otal.
538
492
501
529
532
545
560
559
582
632
679
683
675
680
Canada. . .
272
271
279
286
287
294
284
191
190
192
192
191
188
188
2
12
2
2
12
2
2
12
2
2
12
2
2
12
3
2
12
4
2
12
4
2
12
5
2
12
4
2
12
4
2
12
4
2
12
4
2
12
4
2
12
4
15
15
15
15
16
17
17
18
18
18
18
18
17
17
61
18
62
18
61
19
61
19
61
19
61
19
61
19
61
19
61
18
61
38
61
38
61
38
61
38
61
38
Latin America:
Latin American republics..
Neth. Antilles & Surinam.
Other Latin America.........
Total.
Asia:
Japan.........
Other A sia.
T otal.................
79
80
81
81
81
81
80
80
80
99
99
99
99
99
Other countries............
7
7
7
22
42
42
42
42
42
42
42
42
42
42
Total foreign countries.
912
865
883
933
959
979
984
891
912
983
1,030
1,033
1,022
1,027
32
18
30
20
30
21
30
21
30
22
22
23
22
23
22
23
22
24
*
24
*
25
16
25
114
26
114
26
41
140
140
1,074
1,162
1,167
International and regional:
International.....................
Latin American regional..
Asian regional...................
T otal............
50
51
51
52
53
45
45
46
46
24
25
Grand to tal.
962
916
934
985
1,012
1,024
1,030
936
959
1,008
1,054
N o t e .—Data represent estimated official and private holdings of marketable U.S. Govt, securities with an original maturity of more than 1
year, and are based on a Nov. 30,1968, benchmark survey of holdings and
regular monthly reports of securities transactions (see Table 16).
12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF
FOREIGN COUNTRIES
(In millions of dollars or dollar equivalent)
Payable in dollars
End of period
Total
Total
196 8
196 9
3,330 1,692
+3,181 1,431
Bel
gium
Payable in foreign currencies
Can Den Italy2 Korea Swe
ad a1 mark
den
32 1,334
32 1,129
20
146
135
15
15
25
Tai
wan
Thai
land
Total
20
20
100
100
1,638
4 1,750
Aus
tria
50
Bel
gium
1,051
*1,084
Italy
Switz
erland
226
125
311
541
1970—May
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.
3,096
3,511
3.508
3.508
3.508
3,567
3,564
3.563
2,013
2,428
2.425
2.425
2.425
2,484
2,481
2.480
32
32
32
32
32
32
32
32
1,729
2.229
2.229
2.229
2.229
2.289
2.289
2.289
117
32
29
29
29
28
25
25
15
15
15
15
15
15
15
15
20
20
20
20
20
20
20
20
100
100
100
100
100
100
100
100
1.083
1.083
1.083
1.083
1.083
1.083
1.083
1.083
542
542
542
542
542
542
542
542
541
541
541
541
541
541
541
541
1971—Jan.,
Feb.,
Mar.
Apr.
May
3.563
3.563
3.563
3.563
53,592
2.480
2.480
2.480
2.480
2.480
32
32
32
32
32
2.289
2.289
2.289
2.289
2.289
25
25
25
25
25
15
15
15
15
15
20
20
20
20
20
100
100
100
100
100
1.083
1.083
1.083
1.083
51,111
542
542
542
542
542
541
541
541
541
5569
1 Includes bonds issued in 1964 to the Government of Canada in connec
tion with transactions under the Columbia River treaty. Amounts out
standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through
Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and
Oct. 1970 through latest date, $24 million.
2 Bonds issued to the Government of Italy in connection with mili
tary purchases in the United States.
3 In addition, nonmarketable U.S. Treasury notes amounting to $125
million equivalent were issued to a group of German commercial banks in
June 1968. The revaluation of the German mark in Oct. 1969 increased
the dollar value of these notes by $10 million.
4 Includes an increase in dollar value of $84 million resulting from
revaluation of the German mark in Oct. 1969.
5 Increase in valuation resulted from redemption of outstanding Swiss
franc securities at old exchange rate and reissue of securities at new ex
change rate with same maturity dates, at time of revaluation of Swiss
franc. The new issues include some certificates of indebtedness issued to
replace notes which were within a year of maturity.
A 82
INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S. □ J U N E 1971
13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
Area and country
1970
1969
Dec.
July
Aug.r
Sept.r
1971
Oct.r
Nov . r
Dec.r
6
50
40
66
113
184
26
101
61
54
11
52
97
100
9
379
35
13
3
45
4
69
46
103
95
142
21
92
74
61
12
49
102
121
3
410
35
10
2
36
4
68
53
110
111
171
22
98
68
65
14
56
100
114
4
513
31
11
2
41
Europe:
Austria......................................................
Belgium-Luxembourg.............................
Denmark..................................................
Finland.....................................................
France......................................................
Germany..................................................
Greece......................................................
Italy..........................................................
Netherlands..............................................
Norway.....................................................
Portugal....................................................
Spain.........................................................
Sweden......................................................
Switzerland..............................................
Turkey......................................................
United Kingdom .....................................
Yugoslavia................................................
Other Western Europe.............................
U.S.S.R.....................................................
Other Eastern Europe.............................
7
56
40
68
107
205
22
120
51
34
8
70
67
99
19
408
28
9
2
34
13
53
28
65
83
125
25
87
49
31
12
52
113
109
17
403
32
7
1
45
7
52
36
63
75
169
27
90
46
30
8
51
103
123
10
340
33
6
2
43
4
70
34
63
104
181
28
102
67
33
10
59
112
100
6
386
36
7
3
40
5
68
36
56
78
182
27
106
52
40
16
58
123
115
4
378
42
8
3
43
8
71
37
55
105
184
25
92
57
48
13
54
110
98
4
430
41
12
1
41
Jan .r
Feb.
Mar.p
Apr.P
5
68
58
123
98
190
21
102
70
62
15
59
104
174
5
456
33
9
3
47
17
57
54
128
102
211
22
107
76
54
15
65
124
130
8
579
33
12
3
51
Total..................................................
1,454
1,350
1,315
1,446
1,437
1,487
1,448
1,487
1,657
1,701
1,846
Canada.........................................................
826
730
751
806
897
917
1,084
914
941
1,018
972
Latin America:
Argentina..................................................
Brazil........................................................
Chile..........................................................
Colombia..................................................
Cuba.........................................................
Mexico......................................................
Panama.....................................................
Peru..........................................................
Uruguay....................................................
Venezuela..................................................
Other Latin American republics.............
Bahamas and Bermuda...........................
Netherlands Antilles and Surinam.........
Other Latin America...............................
309
317
188
225
14
803
68
161
48
240
295
93
14
27
306
299
210
250
14
901
68
156
57
248
295
56
16
23
297
296
210
256
14
889
68
142
53
251
294
64
17
20
306
316
205
265
14
900
83
132
57
267
285
78
18
22
303
323
199
267
14
906
94
136
54
284
298
133
14
20
306
322
189
272
13
934
84
141
55
284
321
105
14
22
324
322
199
284
13
904
95
147
63
281
340
179
19
22
326
309
186
288
13
912
82
143
56
276
334
178
19
22
337
320
184
296
13
951
105
135
51
275
336
157
14
21
346
360
179
300
13
908
100
131
49
243
326
200
15
22
317
387
165
303
13
892
105
150
53
242
328
190
21
22
Total..................................................
2,802
2,900
2,871
2,947
3,045
3,062
3,191
3,145
3,193
3,193
3,187
Korea........................................................
Philippines................................................
Taiwan......................................................
Thailand...................................................
Other........................................................
1
36
10
30
108
3,432
158
215
49
101
212
1
41
12
36
90
3,484
222
269
82
96
180
1
35
11
42
80
3,387
228
209
81
106
165
1
46
10
46
82
3,331
227
215
81
108
157
2
36
12
41
105
3,370
218
134
82
100
160
1
36
12
54
110
3,538
197
129
82
97
164
2
39
13
56
120
3,890
196
137
95
109
157
1
40
16
49
99
3,675
196
135
101
106
167
1
41
13
49
130
3,480
194
137
113
109
182
2
49
15
66
97
3,482
221
124
119
109
183
1
60
24
45
110
3,356
243
128
117
118
187
Asia:
China Mainland.......................................
Hong Kong..............................................
India..........................................................
Indonesia..................................................
Israel.........................................................
Total..................................................
4,352
4,511
4,345
4,304
4,262
4,420
4,815
4,585
4,448
4,466
4,389
Africa:
Congo (Kinshasa)....................................
Morocco...................................................
South Africa............................. ...............
U.A.R. (Egypt)........................................
Other........................................................
6
3
55
11
86
5
4
69
15
65
4
6
68
14
65
6
5
72
13
63
4
6
72
12
63
5
4
76
10
72
4
6
77
13
79
7
6
83
16
78
4
6
84
14
85
6
6
86
14
101
5
5
93
17
103
Total..................................................
162
157
157
159
157
166
180
190
194
213
223
Other countries:
Australia...................................................
All other...................................................
53
16
63
15
66
16
60
17
59
15
59
16
64
16
70
17
105
19
73
18
73
18
Total..................................................
69
78
82
77
75
75
80
87
124
91
91
Total foreign countries...............................
9,664
9,726
9,520
9,739
9,872
10,127
10,798
10,408
10,557
10,681
10,709
International and regional..........................
2
1
2
2
1
2
3
2
2
2
2
Grand total.......................................
9,667
9,727
9,521
9,741
9,873
10,129
10,801
10,410
10,559
10,683
10,711
N o t e .—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.
J U N E 1971 □ INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.
A 83
14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
Payable in dollars
Loans to—
End of period
Total
Total
Total
Official
institu
tions
Banks1
Others
Payable in foreign currencies
Collec Accept
ances
tions
made
out
for
stand of acct.
for
ing
eigners
Other
Total
Foreign
govt, se
Deposits curities,
with for coml.
eigners and fi
nance
paper
Other
8,711
8,261
3,165
247
1,697
1,221
1,733
2,854
509
450
336
40
73
10^02
(9,578
(9,667
9,063
9,151
3,281
3,278
262
262
1,946
1,943
1,073
1,073
1,954
2,015
3,169
3,202
658
656
518
516
352
352
84
89
79
74
1970—Apr....................
M ay..................
June..................
July...................
Aug.r ................
Sept.r ................
Oct.r .................
Nov . r ...............
D ecr..................
9,518
9,806
10,010
9,727
9,521
9,741
9,873
10,129
10,801
9,040
9,308
9,543
9,306
9,058
9,261
9,358
9,574
10,150
3,116
3,193
3,316
3,191
2,975
3,231
3,129
3,132
3,038
335
315
305
256
178
186
109
95
119
1,734
1,825
1,932
1,873
1,711
1,936
1,897
1,894
1,709
1,047
1,053
1,079
1,063
1,087
1,109
1,123
1,143
1,210
2,241
2,312
2,344
2,350
2,354
2,381
2,438
2,429
2,414
3,223
3,244
3,287
3,234
3,171
3,056
3,158
3,330
3,966
459
559
595
531
557
593
634
683
732
478
498
467
421
463
479
515
555
651
342
338
314
296
354
366
366
354
393
76
93
83
66
50
40
67
112
92
60
66
69
59
59
74
83
89
166
1971—Jan.r .................
Feb....................
Mar.*................
Apr.*................
10,410
10,559
10,683
10,711
9,903
10,024
10,119
10,177
2,850
2,937
2,996
3,088
110
88
100
107
1,561
1,578
1,589
1,726
1,178
1,270
1,307
1,255
2,396
2,389
2,376
2,320
3,950
3,972
4,026
4,086
708
726
721
683
506
535
564
534
308
334
365
338
79
111
102
92
120
90
96
104
1968..............................
1 Excludes central banks which are included with “Official institutions.”
2 Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date,
15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
Type
Country or area
Payable in dollars
End of
period
Total
Loans to—
Total
Official
institu
tions
Other
Banks1 foreign
ers
Other
long
term
claims
Payable
in
foreign
curren
cies
United
King
dom
Other
Europe
Latin
Canada America
Japan
Other
Asia
All
other
countries
1968.................
1969.................
3,567
3,250
3,158
2,806
528
502
237
209
2,393
2,096
394
426
16
18
68
67
479
411
428
408
1,375
1,329
122
88
617
568
479
378
1970—Apr___
M a y .. . .
Juner . ..
J u l y '. ..
Aug.r . ..
Sept.r. ..
Oct.r . ..
Nov.r. . .
D ec.r. ..
3,248
3,232
3,177
3,127
3,131
3,155
3,229
3,216
3,067
2,815
2,822
2,788
2,745
2,719
2,750
2,839
2,825
2,691
508
511
499
486
470
460
531
515
504
220
211
209
215
225
244
256
247
230
2,087
2,100
2,080
2,044
2,023
2,046
2,053
2,064
1,957
401
380
362
354
383
377
359
364
352
32
30
27
29
29
28
30
26
25
74
67
67
69
64
65
67
66
71
413
426
425
396
398
395
407
387
411
420
427
416
417
411
416
409
398
312
1,363
1,348
1,341
1,337
1,324
1,357
1,342
1,362
1,318
89
89
92
100
106
108
109
113
115
546
530
517
502
515
499
582
583
548
343
345
319
307
312
314
312
307
292
1971—Jan........
Feb.......
M ar.*. .
A pr.*...
2,953
2,948
3,032
3,072
2,601
2,634
2,725
2,762
485
484
498
506
208
208
221
218
1,909
1,942
2,006
2,037
327
289
277
277
24
26
30
30
70
77
111
117
412
420
423
440
278
266
268
275
1,272
1,248
1,259
1,262
117
121
125
119
523
521
548
553
280
295
298
305
1 Excludes central banks, which are included with “Official institutions.”
A 84
INTL. CAPITAL TR A N SA C TIO N S OF T H E U.S. □ J U N E 1971
16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)
U.S. corporate
securities 2
Marketable U.S. Govt, bonds and notes i
Foreign bonds
Foreign stocks
Net purchases or sales
Period
Total
Intl.
and
regional
Pur
chases
Foreign
Total
Official
1969.............................
1970r ...........................
-4
46
11
-2 5
-1 5
71
-7 9
-3 9
5
1971—Jan.-Apr.P___
159
115
44
1970—Apr.r ...............
May.................
June.................
July..................
Aug..................
Sept.r ..............
Oct.r ...............
Nov..................
Dec...................
10
18
51
27
13
5
-9 3
23
49
1
1
*
1
-8
*
*
1
-2 2
9
18
50
26
21
5
-9 4
22
71
1971—Jan ..................
Feb...................
Mar.®..............
Apr.®...............
46
20
88
5
-1
17
99
*
47
3
-1 1
5
Net pur Pur
Sales chases or chases
sales
Net pur
Sales chases or Pur
chases
sales
Sales
2,578 -1 ,0 2 6
2,422
-932
1,519
1,033
2,037
995
-517
38
Net pur
chases or
sales
Other
64 15,476 12,795
110 11,426 9,844
2,681
1,582
1,552
1,490
38
5,552
5,156
396
592
967
-375
359
504
-145
-9 1
*
18
9
16
35
6
21
5
-3
22
53
1,010
769
858
783
656
1,034
1,187
754
1,321
848
929
783
649
514
703
938
609
1,030
161
-1 6 0
76
134
142
331
249
145
291
143
116
113
126
143
110
109
97
140
186
70
97
263
380
93
256
87
263
-4 2
47
16
-1 3 6
-2 3 7
17
-147
10
-123
80
109
74
62
60
76
71
65
83
104
90
60
58
45
90
120
76
86
-2 4
18
15
4
15
-1 4
-5 0
-11
-3
5
*
47
-2
-11
4
1,242
1,516
1,411
1,383
1,022
1,411
1,315
1,408
220
105
97
-2 5
116
126
176
174
425
107
196
241
-3 0 8
19
-2 0
-6 7
90
68
85
117
95
108
121
179
-5
-4 1
-3 6
-6 3
2
15
20
*
1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions of foreign countries; see Table 12.
2 Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations that are not guaranteed by the United States.
Also includes issues of new debt securities sold abroad by U.S. corpora
tions organized to finance direct investments abroad.
N o t e .— Statistics include transactions of international and regional
organizations.
17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)
Other
Ger Nether Switzer United
France many
land Kingdom Europe
lands
Total
Europe
1,094
482
125
-9
Period
Total
1969.....................
1970r ...................
1,487
626
150
58
216
195
1971-Jan .-Apr.P.
71
-5 4
1970—A p r.'.......
M ayr ........
June.........
July..........
Aug...........
Sept..........
Oct...........
Nov..........
Dec...........
5
-2 0 0
63
52
104
225
158
98
216
-8
1
6
16
7
-4
-3
7
39
1971—Jan............
Feb...........
M ar.p. . . .
Apr.P.......
130
-3 2
-2 6
-1
-1 3
-2 3
-2 6
8
189
128
490
110
-245
-3 3
295
24
57
33
-9
-4 5
50
31
20
-2
3
18
18
36
23
13
27
-2 3
33
18
16
16
37
13
18
8
12
-4 6
23
13
40
49
-1
11
39
-1 5
-1 0 2
-2 3
-1 4
20
29
32
3
14
5
-3 2
14
9
11
6
21
31
11
-1 0
-149
41
58
113
154
85
84
137
7
-2 3
-1 1
-1 8
46
21
-9
-9
107
4
-5 9
-2 4
27
28
11
-1 0
14
9
2
8
26
-6
-2 6
-4
Latin
Canada America
Asia
Other Intl. &
Africa countries
regional
136
47
90
85
7
-1
*
-2 9
32
16
25
-3 0
8
-1 6
-6
26
31
6
40
-1 6
-2 5
-2
3
-9
20
30
1
32
6
3
15
6
4
22
13
*
4
*
—1
*
*
*
*
— 1
*
11
-3 4
1
-7
6
-5
18
14
-3
*
9
11
*
*
*
*
*
1
-1
*
36
22
22
*
1
*
*
*
*
1
1
*
1
2
2
-1
7
3
*
*
1
11
*
6
6
J U N E 1971 □ INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.
A 85
18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Period
Total
France
Ger
many
1969.....................
1970'...................
1,195
956
97
35
200
48
Other
Nether Switzer United
land Kingdom Europe
lands
Total
Europe
Latin
Canada America
14
37
169
134
251
118
83
91
815
464
32
128
Asia
14
25
-1 1
28
-1
Other Intl. and
Africa countries
regional
1
*
10
-1 2
336
324
1971—Jan.-Apr.^
325
18
7
2
70
63
49
209
34
8
1970—Apr...........
May..........
June..........
July*”........
Aug..........
Sept.r . . . .
Oct.r ........
Nov..........
Dec...........
156
40
13
82
38
106
91
47
75
4
*
-6
-2
-3
25
*
1
7
16
*
*
-1
*
1
*
-3
32
14
4
23
-1
3
8
3
9
10
-1 4
-1 2
36
-1
-1
-8
1
28
7
5
3
8
1
2
43
4
18
76
9
-8
68
-4
31
43
13
61
7
2
13
6
21
16
14
17
1
6
2
2
6
2
-6
1
2
1
1
2
10
1
*
1
6
3
3
*
*
*
*
*
*
*
*
*
-1 2
*
-1
-6
-1
-2
*
-2
*
1
65
26
3
1
21
64
29
13
8
1971—Jan............
Feb...........
M ar.?. . . .
Apr.**........
89
137
123
-2 3
7
3
4
4
-1
1
-1
2
2
«
4
10
3
-6
3
14
-3
*
2
-1
*
15
16
32
7
2
21
32
7
*
39
5
5
12
85
92
19
28
-4
11
-2
-4
1
6
4
*
1
3
-6
*
*
*
*
*
-1 2
*
*
52
65
11
-3 9
*
N o t e .—Statistics
include State and local govt, securities, and securities
U.S. Govt, agencies and corporations that are not guaranteed by
89
the United States. Also includes issues of new debt securities sold abroad
by U.S. corporations organized to finance direct investments abroad.
19. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA
20.
FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS
(In millions of dollars)
(Amounts outstanding; in millions of dollars)
Period
Total
Total
for
Intl.
and
eign
re coun
gional tries
1969.......................... -1 ,5 4 4
1970r ........................
-8 9 4
66 -1,610
-2 5 4 -641
1971—Jan.-A pr.p...
-5 2 0
-236
1970—Apr................
M ay..............
9 -7 5
-6 6
11
65
54
25
30
5
-1 3 2
-9 4
-3 8
-2 2 2 -158
-6 4
3
16 -1 3
-1 9 7
-9 1 -1 0 6
-1
3
—4
-1 2 5
4 -1 2 9
J u ly ..............
Aug...............
Sept...............
Oct................
Nov...............
Dec...............
1971—Jan.................
Feb................
Mar.*7............
A pr.?............
-3 1 3
-2 1
-5 6
-1 2 9
-2 8 4
-1 9 7 -117
-4
-1 7
11 -6 7
-8 3
-4 6
Eu
rope
Latin
Can Amer
Asia
ada
ica
74 -1,128
50 -569
-4 7
-5 9
Other
coun
tries
-9 8
-1 1
-471
-125
-6
-6
20
20
-2
-181
-1
6
17 - 8 2
-1
42
1
39
9 -7 8
4 -127
5
22
-3 3
-5 1
15
-1 0
-2 2
-7 4
-2
3
—1
-2 3
56
-3 0
3
-2
-5
-9
8
-1 5
-1
2
-1 2
-2 7
-9
-3 1
-8 2
27
-3 4
29
-1 0
4
6
-2
-2 9
-2 9
-4 4
-7 9
2
-2 1
6
-3 4
Af
rica
-1
-1
*
*
-1
*
1
2
1
*
1
2
2
1
4
2
1
1
1
End of
period
Credit
balances
(due to
foreigners)
Debit
balances
(due from
foreigners)
1967......................................
1968.......................................
311
636
298
508
1969—Mar...........................
June...........................
Sept...........................
Dec............................
553
566
467
434
393
397
297
278
1970—Mar...........................
June...........................
Sept...........................
Dec............................
368
334
291
349
220
182
203
279
1971—Mar. p ........................
511
314
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
foreieners with them, and in their accounts carried bv
foreigners.
A 86
INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S. □ J U N E 1971
21. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES
AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S.
GOVT. SECURITIES
22. MATURITY OF EURO DOLLAR
DEPOSITS IN FOREIGN
BRANCHES OF U.S. BANKS
(Amounts outstanding; in millions of dollars)
(End of month; in billions of dollars)
Wednesday
Amount
1966
Mar.
June
Sept.
Dec.
30.................
29.................
28.................
28.................
1,879
1,951
3,472
4,036
1967
Mar.
June
Sept.
Dec.
29.................
28.................
27.................
27.................
3,412
3,166
4,059
4,241
1968
Mar. 27.................
June 26..................
Sept. 25.................
Dec. 31 (1/1/69)...
4,920
6,202
7,104
6,039
1969
Mar. 26.................
June 25..................
Sept. 24..................
Dec. 31..................
9,621
13,269
14,349
12,805
Wednesday
Amount
1970
Jan. 28................
Feb. 25................
Mar. 25................
Apr. 29................
May 27................
June 24................
July 29...............
Aug. 26................
Sept. 2................
9 ................
16................
23................
30................
Oct. 7................
14................
21................
28................
Nov. 4................
11................
18...............
25................
Dec. 2................
9 ................
16...............
23................
30................
13,605
13,086
11,885
11,944
12,346
12,172
10,469
10,629
10,332
10,220
10,525
10,126
9,663
9,830
9,589
9,595
9,297
9,024
8,892
8,766
8,435
8,252
8,215
8,305
7,902
7,676
Wednesday
Jan.
Feb.
Amount
1971 '
6.....................7,424
1 3
.....7,863
.....7,823
2 0
2 7
.....7,536
3............... ..... 7,432
10.....................7,233
17............... .....6,872
24............... .....6,666
Feb.
Mar.
1.51
1.77
1.67
2.02
1.62
1.96
8.85
5.00
3.91
1.51
5th.............................. 1.59
6th.............................. 1.48
.23
.20
.18
9th..............................
.23
10th..............................
.24
11th.........; ...................
.14
Maturities of more than 1
.54
2nd.............................
3rd..............................
7 ............... .....4,759
1 4
.....5,318
2 1
.....5,252
2 8
.....5,166
9.13 10.03
4.93 3.70
2.95 3.52
1.84 2.08
1.78 1.57
1.42 1.32
.28
.22
.21
.30
.29
.33
.25
.20
.17
.20
.17
.26
.70
.57
27.39 27.66 28.01
May
5............... .....5,012
12............... .....4,606
19............... .....4,636
26.....................4,587
N o t e .— Includes interest-bearing U.S. dollar
deposits and direct borrowings of all branches in
the Bahamas and of all other foreign branches
for which such deposits and direct borrowings
amount to $50 million or more.
Details may not add to totals due to rounding
N o t e . —The data represent gross liabilities of reporting banks to their branches in foreign
countries and special U.S. Govt, securities held by foreign branches as follows: Export-Import
bank securities, $1,000 million, Jan. 27, 1971—Feb. 24, 1971, and $1,500 million, Mar. 3, 1971,
through latest date; and $1,508 million of Treasury Certificates Eurodollar Series beginning
Apr. 14, 1971.
23. DEPOSITS, U.S. GOVT. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGNERS
Jan.
Call...................................
Other liabilities, maturing
in following calendar
months after report
date :
Mar. 3............... .....6,516
10............... .....6,306
17............... .....5,680
24............... ..... 5,838
31............... .....4,358
Apr.
1971
Maturity of
liability
24. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
(In millions of dollars)
End of
period
Payable in
Payable in dollars foreign currencies
Assets in custody
Deposits
U.S. Govt.
securities1
Earmarked
gold
1968.
1969.
216
134
9,120
7,030
13,066
12,311
1970-—May. .
Ju n e ..
Ju ly ...
A ug...
Sept...
O ct....
Nov...
D e c ...
128
168
199
173
136
142
136
148
9,754
10,888
11,803
12,489
13,983
14,458
16,196
16,226
12,239
12,240
12,217
12,283
12,611
12,617
12,644
12,926
1971-—Jan__
Feb. ..
M ar...
A p r...
May. .
129
147
201
162
208
16,206
18,033
20,534
22,879
28,126
12,958
12,981
13,057
13,095
13,447
1 U.S. Treasury bills, certificates of indebtedness,
notes, and bonds; includes securities payable in foreign
currencies.
N o t e .—Excludes deposits and U.S. Govt, 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
Total
1968...................
1G£Q2
1,638
J1,319
11,454
1,219
952
1,025
87
116
161
272
174
183
1970—Apr.........
May........
June........
July........
Aug.........
Sept.........
Oct. r . . . .
Nov. r . ..
Dec.r ----
1,438
1,459
1,476
1,423
1,276
1,375
1,418
1,436
1,045
1,053
1,011
1,041
1,009
868
889
905
924
619
178
200
174
181
164
183
177
171
133
1971—Jan. r . . . .
Feb.r . . . .
Mar........
1,211
1,270
1,325
795
786
865
124
152
142
United
King
dom
Canada
60
76
86
979
610
663
280
469
519
142
138
148
159
151
177
177
175
172
66
109
112
74
94
126
159
166
121
892
837
754
752
662
668
641
628
363
270
331
359
309
297
382
440
472
417
180
191
176
114
141
143
511
539
586
363
401
372
Short
Short
term Deposits term
Deposits invest
invest
ments!
ments 1
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 26.
J U N E 1971 □ INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.
A 87
25. 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
1969
Claims on foreigners
1970
1969
1970
Dec.
Mar.
June
Sept.
8
46
2
2
127
139
4
77
126
5
14
24
34
159
4
770
2
11
4
5
59
16
7
122
219
19
155
64
17
10
77
32
45
12
999
18
12
22
7
60
17
8
155
172
19
169
72
12
14
78
27
47
12
1,198
19
11
17
8
58
17
8
176
174
27
173
72
13
18
72
27
37
11
1,081
15
12
20
9
54
16
13
154
192
28
160
62
13
14
73
25
45
13
1,010
17
9
24
10
47
17
11
150
209
28
163
62
16
15
81
40
44
8
689
17
8
24
1,532
1,556
1,909
2,111
2,020
1,932
1,639
213
213
819
635
683
696
762
15
14
9
5
*
21
5
6
5
19
28
57
38
6
10
17
11
6
*
28
5
6
5
14
35
89
24
5
11
19
11
6
*
21
5
4
4
18
37
144
23
6
54
86
41
33
1
146
19
30
7
58
90
66
6
17
55
97
42
36
1
143
19
34
8
69
92
84
7
25
62
100
37
37
1
135
19
37
6
65
102
159
8
19
61
107
42
37
1
149
18
29
5
72
97
139
10
23
61
120
49
37
1
154
18
36
6
71
99
121
9
29
178
229
255
311
655
713
786
790
811
7
20
5
14
143
2
9
3
3
27
7
27
5
15
132
1
6
4
3
26
7
37
7
17
114
2
7
4
3
28
8
41
7
21
135
1
7
8
4
47
9
38
9
25
144
1
7
9
4
48
11
37
12
36
255
28
40
19
15
119
14
36
11
34
297
27
32
23
15
113
17
41
17
23
311
50
33
29
15
125
19
42
14
21
314
29
32
27
13
145
17
34
21
23
322
42
30
33
11
146
233
227
227
282
294
574
602
662
657
678
U.A.R. (Egypt).....................
Other Africa.........................
2
14
7
29
3
19
1
33
14
19
2
37
15
24
2
51
2
34
1
40
4
30
9
46
4
28
9
47
5
35
10
49
4
29
11
48
3
30
9
50
T otal..............................
52
56
72
90
78
88
87
99
92
92
61
7
65
6
70
6
75
5
75
7
61
10
65
13
85
14
71
15
81
15
68
*
71
*
76
*
80
*
82
*
71
*
78
100
86
95
International and regional. . . .
1
2
1
1
Grand total...................
2,063
2,166
2,317
2,453
2,535
4,117
4,227
4,350
4,253
4,079
Dec.
Mar.
June
Sept.
Sweden..................................
Switzerland...........................
Turkey...................................
United Kingdom..................
Yugoslavia............................
Other Western Europe........
Eastern Europe.....................
4
65
3
2
137
218
4
85
90
4
10
59
38
129
3
431
1
21
1
3
72
3
1
127
193
3
83
110
5
6
55
29
157
2
556
2
19
2
4
71
3
1
156
164
3
85
116
5
5
47
31
157
2
635
1
21
3
6
66
3
1
141
166
3
70
121
6
10
48
35
183
3
641
1
21
5
T otal..............................
1,304
1,428
1,509
Canada.....................................
226
204
204
Other L.A. republics............
Bahamas and Bermuda........
Neth. Antilles and Surinam.
Other Latin America............
9
18
10
7
*
17
4
12
5
16
43
31
2
4
11
13
8
6
*
24
8
10
5
13
27
46
4
5
Total..............................
179
Europe:
Austria..................................
Belgium-Luxembourg..........
Denmark...............................
France..................... ............
Germany, Fed, Rep. of........
Greece...................................
Italy.......................................
Netherlands...........................
Norway.................................
Portugal.................................
Latin America
Argentina..............................
Brazil.....................................
Chile......................................
Colombia..............................
Cuba......................................
Panama.................................
Peru.......................................
Uruguay................................
Asia:
Hong Kong...........................
Indonesia...............................
Israel.....................................
Japan.....................................
Korea....................................
Philippines............................
Taiwan...................................
Thailand................................
Other Asia.............................
Africa:
Congo (Kinshasa)................
Other countries:
All other...............................
Total..............................
N o t e . —Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
Dec.*
Dec.*
Data exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.
A 88
INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S. □ J U N E 1971
26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Amounts outstanding; in millions of dollars)
Liabilities
End of period
Total
Payable
in
dollars
Claims
Payable
in
foreign
currencies
Payable in foreign
currencies
Payable
in
dollars
Total
Deposits with
banks abroad
in reporter’s
name
Other
1966—Dec......................
1,089
827
262
2,628
2,225
167
236
1967—Mar......................
June.....................
Sept......................
Dec...................... S
D ec.1................... {
1,148
1,203
1,353
1,386
864
916
1,029
1,027
1,039
285
287
324
343
347
2,689
2,585
2,555
2,946
3,011
2,245
2,110
2,116
2,529
2,599
192
199
192
201
203
252
275
246
216
209
1968—M ar......................
June.....................
Sept......................
Dec......................
1,358
1,473
1,678
1,608
991
1,056
1,271
1,225
367
417
407
382
3,369
3,855
3,907
3,783
2,936
3,415
3,292
3,173
211
210
422
368
222
229
193
241
1969—M ar......................
1,576
June.....................
1,613
1,797
Sept......................
Dec...................... ( 1,786
D ec.1 .................. \ 2,063
1,185
1,263
1,450
1,399
1,627
391
350
346
387
435
4,014
4,023
3,874
3,710
4,117
3,329
3,316
3,222
3,124
3,494
358
429
386
221
244
327
278
267
365
379
1970—Mar......................
Ju n e ....................
Sept......................
Dec.*...................
1,687
1,801
1,928
2,114
479
516
525
421
4,227
4,350
4,253
4,079
3,695
3,765
3,653
3,507
219
234
297
231
313
351
303
342
1.371
2,166
2,317
2,453
2,535
i Data differ from that shown for Dec. in line above because of changes
in reporting coverage.
27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
Claims
End of period
Total
liabilities
Country or area
Total
United
Kingdom
Other
Europe
Canada
Brazil
Mexico
Other
Latin
America
Japan
Other
Asia
Africa
All
other
1966—Dec.........................
329
1,256
27
198
272
203
56
212
95
93
87
13
1967—Mar........................
June.......................
Sept........................
Dec........................ (
Dec.1..................... \
454
430
411
414
428
1,324
1,488
1,452
1,537
1,570
31
27
40
43
43
232
257
212
257
263
283
303
309
311
322
203
214
212
212
212
58
88
84
85
91
210
290
283
278
274
108
110
109
128
128
98
98
103
117
132
84
85
87
89
89
17
15
13
16
16
582
747
767
1,129
1,536
1,568
1,625
1,790
41
32
43
147
265
288
313
306
330
345
376
419
206
205
198
194
61
67
62
73
256
251
251
230
128
129
126
128
145
134
142
171
84
83
82
83
21
33
32
38
1969—Mar........................
1,285
June.......................
1,325
Sept........................
1,418
Dec......................... S *>725
Dec.1..................... X 2,246
1,872
1,952
1,965
2,215
2,332
175
168
167
152
152
342
368
369
433
443
432
447
465
496
537
194
195
179
172
174
75
76
70
73
77
222
216
213
388
417
126
142
143
141
142
191
229
246
249
269
72
72
71
69
75
43
40
42
42
46
1970—Mar........................
June.......................
Sept........................
Dec.*7.....................
2,714
2,727
2,856
2,910
159
161
157
146
735
712
720
709
549
557
597
645
178
175
177
181
74
65
63
59
455
475
584
606
158
166
144
140
286
286
283
290
71
76
73
71
47
54
58
64
1968—Mar........................
June.......................
Sept........................
Dec.........................
2,307
2,561
2,746
3,091
1 Data differ from that shown for Dec. in line above because of changes
in reporting coverage.
JU N E 1971 □ M ONEY RATES
A 89
FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Australia
Austria
(schilling)
Belgium
(franc)
Canada
(dollar)
Ceylon
(rupee)
Denmark
(krone)
Finland
(markka)
1111.22
111.25
111.25
111.10
111.36
3.8686
3.8688
3.8675
3.8654
3.8659
2.0067
2.0125
2.0026
1.9942
2.0139
92.811
92.689
92.801
92.855
95.802
20.946
20.501
16.678
16.741
16.774
14.475
14.325
13.362
13.299
13.334
31.061
229.553
23.761
23.774
23.742
28.500
27.241
24.934
24.936
24.888
24.874
24.864
24.836
111.73
111.45
111.12
110.99
110.87
110.97
111.11
111.12
3.8614
3.8618
3.8670
3.8638
3.8684
3.8698
3.8676
3.8681
2.0140
2.0142
2.0146
2.0145
2.0145
2.0146
2.0147
2.0137
93.195
4 96.273
96.872
97.890
98.422
97.890
98.014
98.276
16.770
16.770
16.770
16.770
16.770
16.775
16.792
16.792
13.324
13.334
13.330
13.329
13.331
13.331
13.336
13.354
23.748
23.748
23.748
23.748
23.748
23.736
23.722
23.722
1971—j an....................................................
F eb...................................................
24.829
24.831
24.835
24.673
24.156
111.82
112.38
112.42
112.38
112.42
3.8665
3.8651
3.8670
3.8696
5 3.9676
2.0145
2.0148
2.0145
2.0144
2.0164
98.831
99.261
99.367
99.237
99.138
16.792
16.792
16.792
16.792
16.792
13.361
13.359
13.368
13.353
13.334
23.722
23.722
23.722
23.727
23.735
Period
France
(franc)
Germany
(Deutsche
mark)
India
(rupee)
Ireland
(pound)
Italy
(lira)
Japan
(yen)
Malaysia
(dollar)
Mexico
(peso)
Neth
erlands
(guilder)
1966.............................................................
1967.............................................................
1968.............................................................
1969.............................................................
1970.............................................................
20.352
20.323
20.191
7 19.302
18.087
25.007
25.084
25.048
825.491
27.424
<>16.596
13.255
13.269
13.230
13.233
279.30
275.04
239.35
239.01
239.59
.16014
.16022
.16042
.15940
.15945
.27598
.27613
.27735
.27903
.27921
32.538
32.519
32.591
32.623
32.396
8.0056
8.0056
8.0056
8.0056
8.0056
27.630
27.759
27.626
27.592
27.651
1970—May..................................................
June..................................................
July..................................................
Aug...................................................
Sept..................................................
Oct....................................................
Nov..................................................
Dec...................................................
18.108
18.111
18.120
18.109
18.112
18.104
18.120
18.107
27.523
27.528
27.537
27.537
27.537
27.531
27.544
27.437
13.240
13.230
13.219
13.212
13.211
13.217
13.231
13.229
240.37
239.77
239.06
238.77
238.53
238.74
239.03
239.06
.15897
.15897
.15893
.15928
.16005
.16052
.16064
.16039
.27862
.27864
.27826
.27915
.27935
.27948
.27956
.27959
32.449
32.391
32.308
32.287
32.314
32.395
32.402
32.382
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
27.565
27.588
27.694
27.775
27.785
27.781
27.793
27.763
1971—j an....................................................
F eb...................................................
Mar...................................................
Apr...................................................
May..................................................
18.119
18.122
18.129
18.126
18.094
27.496
27.594
27.538
27.516
928.144
13.269
13.311
13.304
13.315
13.330
240.58
241.78
241.87
241.74
241.87
.16045
.16036
.16063
.16070
.16059
.27932
.27969
.27971
.27972
.27979
32.515
32.615
32.616
32.604
32.642
8.0056
8.0056
8.0056
8.0056
8.0056
27.820
27.814
27.816
27.776
9 28.135
Norway
(krone)
Portugal
(escudo)
South
Africa
(rand)
Spain
(peseta)
Sweden
(krona)
Switz
erland
(franc)
United
King
dom
(pound)
10131.97
111.37
111.21
111.48
13.984
13.985
14.000
13.997
13.992
3.4825
3.4784
3.4864
3.5013
3.4978
139.13
139.09
139.10
138.90
139.24
1.6651
1.6383
1.4272
1.4266
1.4280
19.358
19.373
19.349
19.342
19.282
23.114
23.104
23!169
23.186
23.199
279.30
275.04
239.35
239.01
239.59
1970—May..................................................
June..................................................
July..................................................
Aug...................................................
Sept..................................................
Oct....................................................
Nov..................................................
Dec...................................................
111.84
111.56
111.23
111.10
110.98
111.08
111.22
111.23
13.987
13.985
13.951
13.998
13.994
13.993
13.996
14.021
3.5033
3.4978
3.4913
3.4898
3.4886
3.4893
3.4924
3.4919
139.69
139.35
138.93
138.76
138.62
138.74
138.91
138.93
1.4280
1.4288
1.4290
1.4290
1.4287
1.4290
1.4290
1.4290
19.233
19.266
19.282
19.306
19.225
19.282
19.324
19.340
23.199
23.171
23.235
23.247
23.219
23.090
23.155
23.187
240.37
239.77
239.06
238.77
238.53
238.74
239.03
239.06
1971—Jan....................................................
Feb...................................................
Mar...................................................
Apr...................................................
May..................................................
111.94
112.50
112.54
112.50
112.54
14.003
14.001
14.010
14.028
13.556
3.5000
3.5031
3.5019
3.5000
3.5013
139.81
140.51
140.56
140.51
140.56
1.4290
1.4290
1.4290
1.4291
1.4291
19.365
19.332
19.369
19.368
19.357
23.227
23.266
23.254
23.263
H24.253
240.58
241.78
241.87
241.79
241.87
Period
Argentina
(peso)
.48690
1966.............................................................
.30545
1967.............................................................
.28473
1968.............................................................
1969.............................................................
.28492
1970............................................................. 326.589
1970—May..................................................
July..................................................
Oct....................................................
(pound)
(dollar)
223.41
New Zealand
Period
(pound)
1966.............................................................
1967.............................................................
1968.............................................................
1969.............................................................
1970.............................................................
276.54
276.69
(dollar)
1 Effective Feb. 14, 1966, Australia adopted the decimal currency
system. The new unit, the dollar, replaces the pound and consists of 100
cents, equivalent to 10 shillings or one-half the former pound.
2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2
to 4.2 markkaa per U.S. dollar.
3 A new Argentine peso, equal to 100 old pesos, was introduced on
Jan. 1, 1970. Effective June 18, 1970, the peso was devalued from 3.50 to
4.00 pesos per U.S. dollar. Effective Apr. 6, 1971, the peso was devalued
to 4.06 per U.S. dollar. Effective May 4, 1971, the peso was devalued to
4.12 per U.S. dollar.
4 On June 1, 1970, the Canadian Government announced that, for the
time being, Canada will not maintain the exchange rate of the Canadian
dollar within the margins required by IMF rules.
5 Effective May 9, 1971, the Austrian schilling was revalued to 24.75
per U.S. dollar.
6 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to
7.5 rupees per U.S. dollar.
7 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to
5.55 francs per U.S. dollar.
8 Effective Oct. 26, 1969, the new par value of the German mark was
set at 3.66 per U.S. dollar.
9 Effective May 10, 1971, the German mark and Netherlands guilder
have been floated.
10 Effective July 10,1967, New Zealand adopted the decimal currency
system. The new unit, the dollar, replaces the pound and consists of 100
cents, equivalent to 10 shillings or one-half the former pound.
11 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per
U.S. dollar.
N o t e .—After the devaluation of the pound sterling on Nov. 18, 1967,
the following countries devalued their currency in relation to the U.S.
dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain.
Averages of certified noon buying rates in New York for cable transfers.
For description of rates and back data, see “International Finance,”
Section 15 of Supplement to Banking and Monetary Statistics, 1962.
A 90
MONEY RATES □ J U N E 1971
CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Country
Per
cent
Month
effective
Argentina.
Austria.. . .
Belgium.. .
Brazil........
Burma. . . .
6.0
5.0
7.5
20.0
4.0
Dec.
Jan.
Sept.
July
Feb.
1957
1970
1969
1969
1962
Canada.......
Ceylon........
Chile...........
Colombia..,
Costa Rica.
7.5
5.5
14.0
8.0
4.0
May
May
July
May
June
1970
1968
1969
1963
1966
D enm ark...
Ecuador.. . .
El Salvador.
Finland. . . .
France........
9.0
8.0
4.0
7.0
8.0
May
Jan.
Aug.
Apr.
Oct.
1969
1970
1964
1962
1969
Germany, Fed. Rep. o f..
G hana.............................
Greece.............................
Honduras........................
Iceland.............................
7.5
5.5
6.0
3.0
9.0
Mar.
Mar.
July
Jan.
Jan.
1970
1968
1969
1962
1966
India.......
Indonesia.
Iran.........
Ireland. ..
Israel. . . .
5.0
6.0
8.0
7.31
6.0
Mar.
May
Aug.
May
Feb.
1968
1969
1969
1970
1955
Italy
Jamaica.
Japan. . .
K orea...
Mexico..
5.5
6.0
6.25
24.0
4.5
Mar.
May
Sept.
Apr.
June
1970
1969
1969
1970
1942
6.0
7.0
6.0
4.5
5.0
Aug.
Mar.
Apr.
Sept.
June
1969
1961
1954
1969
1965
Peru.........................
Philippine Republic.
Portugal...................
South Africa............
Spain........................
9.5
10.0
3.5
5.5
6.5
Nov.
June
Apr.
Aug.
Mar.
1959
1969
1970
1968
1970
Sweden.....................
Switzerland.............
Taiwan.....................
Thailand..................
Tunisia.....................
7.0
3.75
10.8
5.0
5.0
July
Sept.
May
Oct.
Sept.
1969
1969
1969
1959
1966
7.5
5.0
7.0
5.5
7.0
May
May
Apr.
June
Mar.
1961
1962
1970
1969
1970
Netherlands..,
New Zealand.
Nicaragua
Norway........ .
Pakistan........
Turkey.................................
United Arab Rep. (Egypt).
United Kingdom................
Venezuela............................
Vietnam...............................
Changes during the last 12 months
Rate as of
May 31, 1970
1970
June
July
Aug.
Oct.
Nov.
7.0
7.0
6.5
Dec.
Jan.
Feb.
6.5
Mar.
6.0
5.25
5.5
14.0
8.0
4.0
7.5
6.75
6.0
5.0
6.0
6.0
8.0
7.31
6.0
6.0
23.0
5.0
5.5
5.75
5.5
3.75
6.25
6.5
6.5
6.0
6.0
9.8
9.0
18.0
5.0
6.0
7.5
8.0
4.0
7.0
6.75
5.0
5.5
6.0
3.0
9.0
6.0
6.0
Rate
as of
May 31,
1971
6.0
5.0
6.0
20.0
4.0
6.5
6.5
May
5.25
7.0
7.5
7.0
Apr.
6.0
8.0
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;
Chile—1 per cent for loans to consumer cooperatives and to handicraft
and small- and medium-sized industries; 6 per cent for industrial trans
formation loans; 8 per cent for preshipment loans, agricultural paper
and loans to firms following prescribed policies; 17 per cent for construc
tion paper beyond a basic rediscount period, personal loans, special
rediscounts, and cash position loans; and 18 per cent for selective redis
counts. A fluctuating rate applies to paper covering the acquisition of
capital goods.
Colombia—5 per cent for warehouse receipts covering approved lists of
products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent
for rediscounts in excess of an individual bank’s quota;
Costa Rica—5 per cent for paper related to commercial transactions
(rate shown is for agricultural and industrial paper);
Sept.
1971
5.5
5.0
5.5
5.5
23.0
4.5
5.5
7.0
6.0
4.5
5.0
9.5
10.0
3.75
6.5
6.0
6.0
3.75
9.8
5.0
5.0
9.0
5.0
6.0
5.0
18.0
Ecuador—5 per cent for special advances and for bank acceptances for
agricultural purposes, 7 per cent for bank acceptances for industrial
purposes, and 10 per cent for advances to cover shortages in legal reserves;
Honduras—Rate shown is for advances only.
Indonesia—Various rates depending on type of paper, collateral, com
modity involved, etc.;
Japan—Penalty rates (exceeding the basic rate shown) for borrowings
from the central bank in excess of an individual bank’s quota;
Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc
tion, import substitution industries and manufacture of exports; 8 per
cent for other agricultural, industrial and mining paper;
Philippines—6 per cent for financing the production, importation, and dis
tribution of rice and corn and 7.75 per cent for credits to enterprises en
gaged in export activities. Preferential rates are also granted on credits to
rural banks; and
Venezuela—2 per cent for rediscounts of certain agriculture paper, 4 Vi
per cent for advances against government bonds, and 5 Vi per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.
Vietnam—10 per cent for export paper; treasury bonds are rediscounted
at a rate 4 percentage points above the rate carried by the bond; and
there is a penalty rate of 24 per cent for banks whose loans exceed quan
titative ceilings.
J U N E 1971 p MONEY RATES; A R B ITR AG E
A 91
OPEN MARKET RATES
(Per cent per annum)
Month
Day-to- Treasury
bills,
day
60-90
money 3
days4
Bankers*
Day-to- allowance
day
on
money
deposits
Treasury Day-to- Bankers’
accept Treasury
bills,
bills,
day
3 months1 money2 3 ances,
months 3 months
Germany,
Fed. Rep. of
France
United Kingdom
Canada
Netherlands
Switzer
land
Day-today
moneys
Treasury
bills,
3 months
Day-today
money
Private
discount
rate
2.75
4.42
1.84
4.81
4.65
5.55
4.96
5.98
3.75
4.21
5.00
5.84
8.22
8.97
6.90
6.00
10.38
5.75
8.35
6.00
7.11
4.75
6.03
6.03
6.01
6.08
5.84
5.93
5.81
5.95
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
8.90
9.35
8.57
8.13
8.13
7.82
7.30
7.46
7.00
7.00
6.75
6.75
6.75
6.75
6.25
5.75
9.23
8.76
8.86
7.85
9.15
7.43
8.44
7.52
6.00
6.00
6.00
6.00
6.00
6.00
5.75
5.91
7.07
6.92
6.96
6.03
6.31
6.89
4.33
6.73
5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.84
6.08
6.12
5.15
5.36
5.00
5.00
5.00
4.00
4.00
6.46
6.00
5.77
5.75
5.75
5.75
4.75
7.61
7.32
7.36
4.23
5.60
5.05
4.49
3.59
3.88
4.46
5.41
3.27
1.13
1.84
5.25
5.25
5.25
5.25
1968—Dec.
1969—Dec.
5.96
7.15
5.31
6.95
7.26
8.49
6.80
7.64
5.99
6.75
1969—Dec.
7.78
7.78
8.88
7.70
1970—May,
June,
July.
Aug.
Sept.
O ct..
Nov.
Dec..
6.51
5.90
5.79
5.66
5.44
5.25
4.74
4.47
6.66
5.98
6.00
5.74
5.51
5.24
4.52
5.07
8.06
8.06
8.07
8.06
8.06
8.06
8.06
8.06
6.82
6.87
6.82
6.81
6.82
6.81
6.81
6.82
1971—Jan..
Feb..
Mar.
A pr.,
May.
4.59
4.51
3.30
3.04
3.06
5.25
4.90
3.48
2.65
2.76
8.06
8.06
8.06
7.06
7.06
6.79
6.75
6.66
5.75
5.65
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.
description and back data, see “International Finance,’
Section 15 of Supplement to Banking and Monetary Statistics, 1962.
N o t e .—For
ARBITRAGE ON TREASURY BILLS
(Per cent per annum)
United States and United Kingdom
United States and Canada
Treasury bill rates
Date
Treasury bill rates
Premium
(+ ) or
discount
( - ) on
forward
pound
Net
incentive
(favor
of
London)
United
Kingdom
(adj. to
U.S.
quotation
basis)
United
States
Spread
(favor
of
London)
6.69
6.69
6.69
6.69
6.69
4.87
4.80
4.68
4.78
4.80
1.82
1.89
2.01
1.91
1.89
- .7 1
- .8 0
- .6 8
- .9 1
- .9 2
Canada
Premium
( + ) or
discount
( - ) on
forward
Canadian
dollars
Net
incentive
(favor
of
Canada)
As
quoted
in
Canada
Adj. to
U.S.
quotation
basis
United
States
Spread
(favor
of
Canada)
1.11
1.09
1.33
1.00
.97
4.46
4.54
4.51
4.40
4.44
4.36
4.42
4.35
4.29
4.33
4.87
4.80
4.68
4.78
4.80
- .5 1
- .3 8
- .3 3
- .4 9
- .4 7
.65
.61
.61
.00
- .1 2
.14
.23
.28
-.4 9
- .5 9
1970
Dec.
4 ..............
11..............
18..............
2 4 ..............
31..............
1971
Jan.
8 ..............
15..............
22..............
29..............
6.69
6.66
6.66
6.66
4.69
4.35
4.06
4.08
2.00
2.31
2.60
2.58
- .9 9
- 1 .5 2
- 2 .2 8
-2 .7 2
1.01
.79
.32
-.1 4
4.55
4.65
4.55
4.72
4.44
4.53
4.44
4.60
4.69
4.35
4.06
4.08
- .2 5
.18
.38
.52
- .3 0
- .6 3
- .8 3
-1 .1 1
- .5 5
- .4 5
- .4 5
- .5 9
Feb.
5.............
11.............
19.............
26.............
6.66
6.66
6.60
6.60
3.97
3.62
3.37
3.33
2.69
3.04
3.23
3.27
- 2 .7 0
- 3 .1 7
- 3 .5 7
-3 .1 3
- .0 1
- .1 3
- .3 4
.14
4.83
4.83
4.58
4.03
4.71
4.71
4.47
3.94
3.97
3.62
3.37
3.33
.74
1.09
1.10
.61
- 1 .0 3
- 1 .0 5
-1 .0 1
- 1 .0 9
-.2 9
.04
.09
- .4 8
Mar.
5..............
12..............
19..............
26..............
6.70
6.70
6.57
6.57
3.28
3.16
3.30
3.32
3.42
3.54
3.27
3.25
-3 .6 1
- 3 .3 4
-3 .2 0
-2 .8 5
- .1 9
.20
.07
.40
3.98
3.30
3.01
3.05
3.86
3.23
2.95
2.99
3.28
3.16
3.30
3.32
.58
.07
- .3 5
- .3 3
- .8 8
- .1 8
.38
.14
-.3 0
- .1 1
.03
- .1 9
Apr.
2 ............
9 ............
16............
23............
30............
5.64
5.67
5.70
5.58
5.55
3.58
3.78
3.82
3.70
3.93
2.06
1.89
1.88
1.88
1.62
-2 .2 5
-2 .6 1
-2 .7 9
- 2 .3 2
- 2 .1 3
- .1 9
-.7 2
- .9 1
- .3 5
- .5 1
3.13
3.03
3.12
3.03
3.01
3.06
2.98
3.05
2.97
2.95
3.58
3.78
3.82
3.70
3.93
- .5 2
- .8 0
- .7 7
- .7 3
- .9 8
.32
.40
.52
.93
.81
- .2 0
- .4 0
- .2 5
.20
- .1 7
May
7 ..............
14..............
21..............
28..............
5.55
5.52
5.52
5.66
3.74
3.98
4.28
4.26
1.81
1.54
1.24
1.40
- 1 .1 4
-1 .1 1
-1 .1 7
- .9 1
.67
.43
.07
.49
3.15
3.05
2.95
3.03
3.08
2.99
2.89
2.97
3.74
3.98
4.28
4.26
- .6 6
- .9 9
- 1 .3 9
- 1 .2 9
1.67
1.31
1.21
1.17
.61
.32
- .1 8
- .1 2
N o t e .— Treasury bills : All rates are on the latest issue of 91-day bills.
U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K.
rates are Friday opening market offer rates in London.
Premium or discount on forward pound and on forward Canadian dollar:
Rates per annum computed on basis of midpoint quotations (between
bid and offer) at 11 a.m. Friday in New York for both spot and forward
pound sterling and for both spot and forward Canadian dollars.
All series: Based on quotations reported to F.R. Bank of New York
by market sources.
For description of series and for back figures, see Oct. 1964 B u l l e t in ,
pp. 1241-60. For description of adjustments to U.K. and Canadian
Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260,
Oct. 1964 B u l l e t in .
A 92
GOLD RESERVES o J U N E 1971
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions of dollars)
End of
period
1964.
1965.
1966.
1967.
1968.
1969.
Esti
mated
total
world i
43.015
243,230
43,185
41,600
40,905
41.015
1970—Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec..
1971—Ja n ....
Feb...,
M ar...
Apr.*.
End of
period
41,170
4 1 ,1 8 0
4 i,2 8 5
*41,260
Co
lombia
Intl.
Mone
tary
Fund
2,179
31,869
United
States
Esti
mated
rest of
world
Algeria
Argen
tina
15,471
13,806
13,235
12,065
10,892
25,365
27,285
27,300
26,855
27,725
26,845
6
6
6
155
205
205
71
66
84
84
109
135
226
223
224
231
257
263
600
700
701
701
714
140
140
140
140
140
140
140
140
140
268
269
270
269
269
282
283
283
239
240
240
239
253
2.652
2,682
2,288
2,310
11,859
2,514
2,529
2,544
2,547
2.652
2,825
2,902
3,224
4,339
11,902
11,900
11,889
11,934
11,817
11.494
11.495
11,478
11,072
25,875
205
205
205
205
205
205
205
205
191
4,380
4,400
4,404
4,338
11,040
11,039
10,963 *25,895
10,925
191
191
191
191
140
140
140
France
Ger
many,
Fed.
Rep. of
Greece
Den
m arkr
Fin
land
26,735
26,860
Aus
tralia
India
Aus
tria
Bel
gium
Brazil
Burma
Canada
715
1,451
1,558
1,525
1,480
1,524
1.520
92
63
45
45
45
45
84
84
84
84
84
84
1,026
1,151
1,046
1,015
863
872
43
44
45
45
46
47
712
713
714
714
714
714
714
714
714
1.518
1.520
1.520
1.520
1.518
1,530
1.528
1.528
1.470
45
45
45
45
45
45
45
45
45
84
84
84
84
63
63
63
63
63
879
880
880
880
880
880
880
880
791
48
47
48
48
47
47
47
47
47
714
714
1.470
1,468
1,466
1,502
45
45
45
46
63
42
42
42
791
791
791
791
47
714
728
Iran
Iraq
Ire
land
Israel
Italy
Chile
Japan
58
35
26
31
31
26
92
97
108
107
114
89
85
84
45
45
45
45
3,729
4,706
5,238
5,234
3,877
3,547
4,248
4,410
4,292
4,228
4,539
4.079
77
78
120
130
140
130
247
281
243
243
243
243
141
146
130
144
158
158
112
110
106
115
193
193
19
21
23
25
79
39
56
56
46
46
46
46
2,107
2,404
2,414
2,400
2,923
2,956
304
328
329
338
356
413
1970—Apr..
May.
June.
July..
Aug..
Sept..
O ct...
Nov..
D ec..
27
27
26
26
26
26
26
18
17
89
89
89
89
89
89
64
64
64
45
45
45
45
45
45
45
45
29
3,544
3,541
3.543
3.543
3.537
3.537
3.537
3,533
3.532
4.079
4.079
4.080
4.080
4.080
4.081
4.081
4.081
3,980
120
120
120
120
120
119
119
117
117
243
243
243
243
243
243
243
243
243
158
158
158
158
158
148
148
131
131
151
151
151
151
151
151
151
144
144
26
26
26
26
26
26
26
16
16
46
46
46
46
45
45
45
43
43
2,978
2.981
2.982
2.983
2.983
2.983
2.983
2,981
2,887
469
472
472
473
474
530
530
532
532
1971—Jan...
Feb...
Mar..
Apr.*
17
17
16
16
64
64
64
64
29
29
29
29
3.532
3,531
3.527
3.527
3,979
3,978
3,977
4,029
114
99
99
243
243
243
131
131
131
131
144
144
144
143
16
16
16
16
43
43
43
2,886
2,885
2.884
2.884
532
534
539
636
Malay
sia
Mexi-
Moroc-
Netherlands
Philip
pines
Portu
gal
Saudi
Arabia
196
196
196
196
196
196
4
5
6
7
8
9
End of
period
Kuwait
Leb
anon
Libya
Nor
way
Paki
stan
Peru
48
52
67
136
122
86
183
182
193
193
288
288
17
68
68
68
85
85
169
158
109
166
165
169
34
21
21
21
21
21
1,688
1,756
1.730
1,711
1,697
1,720
31
31
18
18
24
25
67
67
65
20
20
25
23
38
44
60
62
45
523
576
643
699
856
876
78
73
69
69
119
119
1970—Apr.. ,
M ay.,
June.
July..
Aug..
Sept..
O ct...
Nov..
Dec..
86
86
86
86
86
86
86
86
86
288
288
288
288
288
288
288
288
288
85
85
85
85
85
85
85
85
85
170
171
171
171
171
176
176
176
176
21
21
21
21
21
21
21
21
21
1.730
1.730
1.730
1.750
1.751
1,801
1,801
1,832
1,787
27
27
27
27
27
34
33
23
23
40
40
40
40
40
40
40
40
40
49
50
50
53
54
56
59
59
56
890
890
890
890
901
902
902
902
902
119
119
119
119
119
119
119
119
119
1971—Jan...
Feb...
M ar..
Apr.*,
86
86
86
86
288
322
322
322
85
85
85
85
176
176
21
21
21
21
1,812
1,812
1,812
1,863
23
23
23
31
58
59
60
61
902
902
902
119
119
119
119
196
196
196
196
196
196
4
5
6
7
8
9
For notes see end o f table.
J U N E 1971 □ GOLD RESERVES AND PRODUCTION
A 93
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued
(In millions o f dollars)
End of
period
South
Africa
Spain
Taiwan
Sweden Switzer
land
104
116
97
97
117
139
139
93
93
93
93
200
2 .6 5 9
2 .6 5 9
2 .6 7 0
2 .6 7 0
2 .7 2 0
2 .7 2 0
2 .7 2 0
2 .7 2 0
2 ,7 3 2
82
82
82
82
82
82
82
82
82
92
92
92
92
92
92
92
92
92
127
127
127
127
126
126
126
126
126
93
93
93
93
93
93
93
93
85
200
200
200
200
2.731
2.731
2 ,8 0 6
2 ,8 0 6
82
82
82
92
82
82
81
126
126
127
127
85
85
85
992
978
942
954
920
921
879
788
224
225
225
225
225
225
225
225
666
784
784
784
784
534
534
534
534
498
1971—Jan...
Feb...
Mar..
632
632
634
630
498
498
498
498
196 9
Apr.p,
2 ,1 3 6
2 ,2 6 5
1 ,9 4 0
1,291
1 ,4 7 4
1,471
104
96
92
92
92
92
1970—Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec..
196 8
(Egypt)
United
King
dom
U.A.R.
55
55
62
81
81
82
616
810
785
785
785
784
196 6
196 7
Turkey
2 ,725
3 ,0 4 2
2 ,8 4 2
3 ,089
2 ,6 2 4
2 ,6 4 2
189
574
425
637
583
1,243
1,115
196 4
196 5
Thai
land
202
203
203
225
226
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 Adjusted to include gold subscription payments to the IMF made by
102
Uru
guay
Bank
for
Intl.
Settle
ments 4
Vene
zuela
Yugo
slavia
171
155
146
140
133
165
401
401
401
401
403
403
21
22
50
51
-5 0
-5 5 8
-4 2 4
-624
-3 4 9
-4 8 0
i 349
165
165
165
165
165
165
165
161
162
404
404
404
404
404
404
404
384
384
51
51
51
52
52
52
52
52
52
-5 1 9
-5 3 0
-5 1 6
-5 1 9
-3 1 1
-3 0 3
-3 0 8
-3 0 5
-2 8 2
1 ,1 2 3
162
162
162
384
384
384
389
32
32
32
52
-1 7 3
-1 7 3
-7 3
13
1 ,4 6 9
1 ,4 5 4
\
17
19
some member countries in anticipation of increase in Fund quotas, except
those matched by gold mitigation deposits with the United States and
United Kingdom; adjustment is $270 million.
3 Excludes gold subscription payments made by some member countries
in anticipation of increase in Fund quotas: for most of these countries
the increased quotas became effective in Feb. 1966.
4 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.
GOLD PRODUCTION
(In millions of dollars at $35 per fine troy ounce)
Africa
Period
World
produc
tion 1
South
Africa
Ghana
North and South America
Congo
(Kin
shasa)
United
States
Can
ada
Mex
ico
Asia
Other
Nica Colom India
ragua
bia
Japan
Philip
pines
Aus
tralia
All
other
196 4
196 5
196 6
1 .4 0 5 .0
1 .4 4 0 .0
1 .4 4 5 .0
1 ,0 1 8 .9
1 ,0 6 9 .4
1 ,0 8 0 .8
3 0 .3
2 6 .4
2 4 .0
7 .8
2 .3
5 .6
5 1 .4
5 8 .6
63.1
1 33.0
125.6
114 .6
7 .4
7 .6
7 .5
6 .9
5 .4
5 .2
12.8
11.2
5 .2
4 .6
4 .2
16.1
18.1
1 9 .4
1 4 .9
1 5 .3
15.8
3 3 .7
3 0 .7
3 2.1
66.6
9 .8
196 7
196 8
1 .4 1 0 .0
1 .4 2 0 .0
1 .4 2 0 .0
1 .0 6 8 .7
1 ,0 8 8 .0
1 .0 9 0 .7
2 6 .7
2 5 .4
2 4 .8
5 .4
5 .9
5 3 .4
5 3 .9
60.1
103.7
94.1
8 9.1
5 .8
6 .2
6 .3
5 .2
4 .9
3 .7
9 .0
8 .4
7 .7
3 .4
4 .0
3 .4
2 3 .7
2 1 .5
2 3 .7
20.0
1 7 .2
18.5
2 8 .4
2 7 .6
2 4 .5
5 9 .4
6 1 .6
6 0 .0
7.1
.6
.5
.5
.3
.3
.3
.3
.3
.3
.3
.3
.3
2.1
1.8
2.2
2.0
1969v ..........
1970— M ar..
Apr..
May.
June.
July.
Aug..
Sept..
O ct..
N ov..
Dec..
9 4 .3
9 2 .8
9 4 .5
9 6 .6
9 5 .2
9 6 .3
9 6 .2
9 6 .6
6.0
6.6
1 .7
2.0
2.2
2.2
1971— Jan..
Feb..
M ar..
1 Estimated; excludes U.S.S.R., other Eastern European countries,
China Mainland, and North Korea.
7 .0
7 .2
6.8
6 .3
6.6
6 .9
6 .5
6.8
7 .0
6.6
6 .7
.6
.6
.6
.6
.7
.7
.6
.6
.5
2.6
1 .7
1 .7
1 .7
1.6
1.6
1.6
6 4 .8
6 2 .9
A 94
(Income, etc. in thousands, and asset and liability items in millions, of dollars)
1
Item
All
insured
banks
Insured
nonmember
banks
34,565,598
6,652,889
22,852,957
4,147,202
1,003,667
i
i
All
member
banks
Reserve city
New York
City
; 21,912,109
16,795,569
18,705,755
11,557,260
222,648
781,019
3,067,375
685,246
2,615,705
150,904
1,132,077
1,172,845
838,561
859,205
270,577
525,437
32,480
57,454
305,284
157,365
347,802
698,460
j
Country
Other
5,115,670
1,229,997
10,449,903
11,117,140
3,522,705
817,190
7,217,366
7,148,496
426,056
93,744
31,274
301,038
354,963
2,208,170
414,669
2,090,268
118,424
1,074,623
867,561
681,195
1,031,323
121,714
1,096,087
75,648
836,978
398,302
437,581
278,777
36,273
295,807
26,424
336,384
66,141
105,238
81,457
7,767
79,630
5,650
79,220
5,891
20,012
671,089
77,674
720,651
43,574
421,374
326,270
312,331
1,176,847
292,955
994,181
42,776
237,645
469,260
243,615
1,944
73,294
345,858
625,167
332,472
482,149
159,586
194,592
22,986
78,920
149,900
208,637
13,386
143,017
27,458,142
6,625,658
1,054,511
5,265,424
1,343,627
179,007
22,192,718
5,282,031
875,504
13,396,430
3,079,929
540,596
4,050,936
905,389
175,339
960,724
180,684
37,956
8,384,770
1,993,855
327,301
8,796,289
2,202,102
334,908
10,388,369
2,249,584
8,138,786
4,368,621
995,439
288,472
3,084,710
3,770,165
1,395,871
463,223
104,085
1,247,764
904,756
694,932
4,578,974
30,421
19,230
13,870
235,220
182,732
160,648
851,086
1,365,450
443,993
90,215
1,012,544
722,024
534,283
3,727,889
1,234,564
412,717
68,361
597,079
390,883
310,645
2,393,037
397,947
227,896
25,897
195,228
89,788
81,685
956,329
137,468
34,600
2,115
40,513
21,418
29,540
187,958
699,150
150,221
40,348
361,338
279,677
199,420
1,248,750
130,886
31,276
21,854
415,465
331,142
223,639
1,334,852
Net securities gains or losses ( —) after taxes.........................
Extraordinary charges ( —) or credits after taxes...................
Less minority interest in consolidated subsidiaries...............
7,107,456
2,172,085
4,935,372
-105,023
-13,164
244
1,387,465
396,711
990,754
2,038
1,740
206
5,719,991
1,775,373
3,944,618
-107,061
-1 4 ,9 0 4
38
3,399,140
1,131,798
2,267,342
-100,531
-19,399
-2
1,064,734
370,085
694,649
-55,291
2,991
269,273
91,738
177,535
-13,398
-2 ,2 7 1
2,065,133
669,975
1,395,159
-3 1 ,8 4 0
-2 0 ,1 1 7
-2
2,320,851
643,576
1,677,275
-6 ,5 2 9
4,495
41
Net income......................................................................................
4,816,939
994,326
3,822,613
2,147,413
642,347
161,864
1,343,202
1,675,200
Cash dividends declared:
On common stock.....................................................................
On preferred stock....................................................................
2,029,012
6,739
281,127
582
1,747,884
6,158
1,156,776
5,273
420,439
2,931
87,701
648,636
2,341
591,108
885
2,172,085
396,711
1,775,373
1,131,798
370,085
91,738
669,975
643,576
-143,684
-167,062
-3 ,5 5 9
-1 1,774
-140,124
-155,288
-124,937
-112,390
-6 0,324
-57,719
-15,850
-6 ,2 5 8
-48,761
-48,413
-15,186
-42,898
381,378
1,479,961
894,469
252,042
69,629
572,799
585,491
1
Operating income—Total..............................................................
Loans:
Federal funds sold and securities purchased with resale
Securities—Interest and dividends: 1
Other U.S. Govt, securities (agencies and corporations).
Obligations of States and political subdivisions.................
All other securities................................................................
Service charges on deposit accounts.......................................
Other operating income:
On trading account (net)......................................................
Operating expenses—Total..........................................................
Salaries and wages of officers and employees.........................
Officer and employee benefits..................................................
Interest paid on:
Time and savings deposits....................................................
Federal funds purchased and securities sold with re
purchase agreement.......................................................
Other borrowed money........................................................
Capital notes and debentures..............................................
Provision for loan losses..........................................................
Other operating expenses..........................................................
Income before income taxes and securities gains or losses............
Applicable income taxes...........................................................
Memoranda items:
Income taxes applicable to 1970 operating income...............
Tax effect o f:
Net securities gains or losses ( —), etc.................................
Transfers—Capital accounts to IRS loan loss reserves 2. .
Total provision for income taxes, 1970 .....................................
Federal....................................................................................
State and local........................................................................
1,861,338
1,617,589
243,750
345,394
35,984
1,272,195
207,765
742,258
152,211
185,294
66,747
I
67,428
2,201
489,536
83,263
529,937
55,554
1971
City of
Chicago
BANKS, 1970 □ JUNE
Total
INSURED AND MEMBER
INCOME, EXPENSES, AND DIVIDENDS OF INSURED COMMERCIAL BANKS, 1970
Memoranda items (cont.):
Occupancy expense o f bank premises, gross.......................
Rental income from bank prem ises.................................
Net security gains or losses ( —) before income ta x es.. . .
Extraordinary charges ( - ) or credits before income tax.
1,546,262
298,498
-2 2 5 ,5 8 8
-3 6 ,2 8 4
270,693
35,473
-9 6 4
1,183
1,275,570
263,025
-2 2 4 ,6 2 3
-3 7 ,4 6 6
781,413
184,334
-2 0 3 ,6 4 4
- 4 1 ,2 2 5
231,600
36,371
-117,114
4,488
62,454
21,941
-2 6 ,9 3 1
- 4 ,5 8 9
487,360
126,022
-5 9 ,5 9 6
-4 1 ,1 2 3
494,156
78,691
-2 0 ,9 7 8
3,759
5,965,224
31,108
254,686
1,107,772
1,224,445
32,671
6,101,673
-9 7 8 ,0 5 1
866,018
2,980
49,403
232,132
221,572
12,447
916,513
-176,521
5,099,206
28,128
205,283
875,640
1,002,873
20,224
5,185,160
-8 0 1 ,5 2 9
3,385,851
13,740
103,544
533,964
626,408
7,114
3,403,578
-5 2 2 ,8 6 3
1,248,316
5,541
26,373
186,742
209,932
290,709
,846,826
8,347
43,430
50,462
1,257,030
-1 8 3 ,5 5 8
290,815
-4 2 ,1 1 4
68,824
303,791
366,014
5,894
,855,734
-297,189
1,713,355
14,833
101,294
341,677
376,466
13,110
1,781,582
-2 7 8 ,6 6 6
179,232
680
1,258
29,436
2,875
25,042
182,688
51,024
128,208
64,603
738
7,051
56,813
63,606
499
7,669
1,040
6,411
51,753
759
21,767
1,835
18,632
130,935
118
8,442
413
11,718
61,031
118
7,604
413
10,361
53,761
642
13,325
1,422
6,914
69,903
Total net changes in capital accounts........................................
Net income transferred to undivided profits.......................
Common stock sold (net).......................................................
Preferred stock, capital notes, and debentures sold........
Premium received on new capital stock sold .....................
Transfers from loan and securities reserves.......................
Other increases..........................................................................
Dividends declared...................................................................
Transfers to loan and securities reserve (net of tax effect)
Other decreases..........................................................................
220,477
816,939
127,189
199,461
259,205
57,713
513,980
035,751
275,563
442,695
920,302
994,326
79,151
56,469
129,773
18,858
99,392
281,709
67,379
108,578
2,300,175
3,822,613
48,039
142,992
129,432
38,856
414,587
1,754,042
208,184
334,117
994,054
2,147,413
1,151
95,871
30,819
18,832
146,280
1,162,049
119,370
164,893
750,868
1,343,202
Assets, deposits, and capital accounts:
Loans gross (includes Federal funds sold and resale
purchases)..................................................................................
U.S. Treasury securities1 .............................................................
Other U.S. Govt, securities (agencies and corporations)1. ..
Obligations o f States and political subdivisions1...................
All other securities1.......................................................................
Cast assets.........................................................................................
Total assets5 ....................................................................................
Time and savings deposits.............................................................
Total deposits...................................................................................
Total capital accounts plus total reserves.................................
Equity capital plus total reserves................................................
300,536
54,069
10,402
61,929
2,402
88,894
542,255
211,074
448,135
47,239
45,203
54,427
14,813
4,078
12,581
525
10,203
99,235
47,464
87,414
8,846
8,611
246,109
39,256
6,324
49,348
1,877
78,691
443,020
163,610
360,721
38,393
36,592
Number o f officers and employees.
Number o f banks..............................
954,499
13,502
209,043
7,735
745,456
5,767
838
434
304
923
6,966
176,326
642,347
66,859
161,864
49
668
444
31,907
423,371
47,338
29,620
85
2,133
17,528
87,701
8,470
18,629
93,913
30,734
16,255
96,845
650,978
63,562
116,643
1,306,122
1,675,200
46,888
47,120
98,613
20,024
268,308
591,993
88,814
169,224
150,398
18,003
1,878
25,339
1,144
54,652
267,905
82,993
207,615
23,248
21,836
46,782
4,643
528
6,155
349
22,378
87,601
17,419
63,394
7,639
7,113
10,991
1,362
97
1,830
95
2,833
18,703
5,315
13,857
1,856
1,816
92,625
11,997
1,253
17,353
699
29,441
161,601
60,259
130,364
13,752
12,907
95,711
21,253
4,446
24,009
734
24,039
175,114
80,617
153,106
15,146
14,756
399,034
178
101,008
22,085
9
275,941
157
346,422
5,589
1,958
12
1,102
AND MEMBER
BANKS, 1970
A 95
668
1,210
1971 □ INSURED
For notes see p. A-101.
12
10
8,200
JUNE
Reserves for losses on loans:3
Balance at beginning o f yea r...............................................
Additions due to mergers and absorptions.................
Recoveries credited to reserves......................................
Transfers to reserves........................................................
Losses charged to reserves..............................................
Transfers from reserves.................................................
Balance at end o f y ea r.........................................................
Net loan losses ( —) or recoveries4 ......................................
Reserves on securities:
Balance at beginning o f y ea r...............................................
Additions due to mergers and absorptions.................
Recoveries credited to reserves......................................
Transfers to reserves........................................................
Losses charged to reserves..............................................
Transfers from reserves..................................................
Balance at end o f y ea r.........................................................
A 96
MEMBER
INCOME, EXPENSES, AND DIVIDENDS, BY FEDERAL RESERVE DISTRICT
(Income, etc. in thousands, and asset and liability items in millions, o f dollars)
San
Francisco
Minne
apolis
1,288,607 7,110,027 1,304,570 2,035,605 1,438,936 1,828,539 4,162,979
877,377
716,760 1,139,852 1,408,333 4,601,124
971,074 1,167,511 2,724,257
559,906
New
York
Phila
delphia
Cleve
land
Rich
mond
Atlanta
Chicago
Dallas
726,330
139,643
35,470
59,219
39,519
78,396
124,336
31,166
12,588
46,210
61,489
119,615
84,916
11,128
94,056
3,768
90,745
40,190
40,318
432,120
63,407
514,758
34,909
389,531
148,954
134,423
107,213
18,200
97,399
7,136
57,592
35,609
26,242
209,916
24,352
200,225
8,736
75,139
52,886
40,686
126,690
29,664
107,683
3,559
40,378
56,540
32,993
160,897
41,393
143,885
7,142
46,351
81,803
55,530
405,133
82,132
325,777
20,587
150,823
96,687
82,040
103,563
21,040
64,422
3,246
20,711
26,012
19,983
70,726
17,387
53,032
1,501
17,017
26,357
23,309
120,557
19,774
80,507
6,230
33,359
46,539
38,194
111,654
28,866
119,648
5,032
36,823
48,679
31,146
274,785
57,325
288,877
16,581
116,155
207,307
156,332
6,843
24,644
164,079
228,147
5,310
18,927
4,430
28,117
11,729
19,107
10,377
35,255
32,252
118,956
12,082
15,248
13,096
8,242
6,373
15,780
8,556
19,868
70,731
92,876
Operating expenses—T otal.................................................................... 1,015,797 5,631,982 1,006,736 1,566,560 1,114,957 1,437,693 3,341,872
346,235 308,632 367,187 705,100
290,445 1,306,980 244,543
Salaries and wages o f officers and employees..............................
119,602
55,772
50,913
47,269
47,576
49,694 245,892
Officer and employee benefits...........................................................
Interest paid on:
1,408,600
497,607
667,119
402,725
409,795
262,215
1,651,685
Time and savings deposits............................................................
Federal funds purchased and securities sold with repur
64,219 218,668
51,958
76,003
32,865
67,545 441,287
chase agreement.......................................................................
60,902
30,893
7,211
9,157
5,890
19,809 243,130
Other borrowed m oney..................................................................
12,238
4,986
5,582
3,492
3,813
3,866
32,575
Capital notes and debentures.......................................................
143,927
60,689
55,022
62,579
55,912 280,565
46,351
Occupancy expense o f bank premises, net....................................
105,909
62,858
46,775
35,040
41,769
140,810
52,547
Furniture, equipment, etc..................................................................
87,955
51,439
23,302
18,136
31,545
24,306
114,579
Provision for loan losses....................................................................
188,665 242,042 478,974
140,545 266,970
200,237 1,174,479
Other operating expenses...................................................................
671,683
159,402
25,091
565,207
121,564
20,058
868,854 1,093,904 3,877,473
227,605 244,486 959,852
34,168
149,080
30,389
1971
936,572 3,200,541
473,507
33,369
□ JUNE
L oans:
Kansas
City
St.
Louis
Boston
BANKS, 1970
Item
261,993
250,233
313,755
416,773 1,596,286
45,248
2,313
2,554
28,629
26,454
18,336
101,663
30,052
9,286
1,745
19,174
24,345
8,693
80,058
38,480
6,988
2,484
34,956
38,001
27,904
148,291
90,112
12,961
1,821
39,021
42,814
41,469
170,280
209,013
35,453
15,060
185,720
104,702
86,622
535,686
Fed. funds sold and securities purchased with resale
Other U.S. Govt, securities (agencies and corporations). ..
Trust department incom e..................................................................
Service charges on deposit accounts...............................................
Other charges, fees, etc......................................................................
Other operating income:
On trading account (net)...............................................................
O th e r ..................................................................................................
858,631 4,860,057
895,472 1,331,900
Income before income taxes and securities gains or losses...............
Applicable income taxes....................................................................
Income before securities gains or losses........................................
N et securities gains or losses ( —) after taxes...............................
Extraordinary charges ( —) or credits after taxes........................
272,810 1,478,045
94,554 470,429
178,257 1,007,616
-6 6 0 - 6 2 ,9 9 8
-2 6 8
3,754
297,834
87,756
210,078
- 3 ,6 9 2
620
469,046
118,591
350,455
- 1 3 ,3 2 0
602
323,979
106,163
217,816
- 3 ,3 2 6
-7 2 7
390,846
119,088
271,758
-1 ,1 5 0
5
821,107
255,096
566,011
-1 9 ,4 7 0
-2 ,3 6 1
18
205,695
65,767
139,927
261
1,025
15
151,553
51,098
100,455
- 1 ,1 2 4
839
1
270,999
89,558
181,441
630
504
4
314,428
94,126
220,302
80
-5 8 7
723,650
223,149
500,502
- 2 ,2 8 3
-1 8 ,3 0 5
1
Net income.................................................................................................
177,326
948,371
207,004
337,736
213,761
270,612
544,160
141,198
100,169
182,570
219,794
479,912
Cash dividends declared:
On common stock ...............................................................................
On preferred stock ...........................................................................
87,989
38
550,484
2,939
96,724
41
136,772
362
84,959
638
96,659
140
219,583
1,607
48,186
38,289
25
80,157
315
80,181
32
227,903
22
Memoranda items:
Income taxes applicable to 1970 operating income...................
Tax effect of:
N et securities gains or losses ( —), etc........................................
Transfers—Capital accounts to IRS loan loss reserves2 . . . .
Total provision for income taxes, 1970...........................................
Federal................................................................................................
State and lo ca l..................................................................................
94,554
470,429
87,756
118,591
106,163
119,088
255,096
65,767
51,098
89,558
94,126
223,149
-9 5
-8 ,4 1 2
86,046
63,886
22,161
-6 9 ,4 8 8
- 6 6 ,5 3 0
334,410
251,971
82,439
- 3 ,6 4 8
- 6 ,6 1 0
77,497
76,613
885
-1 3 ,7 5 6
- 9 ,9 3 2
94,902
94,866
35
- 4 ,4 2 4
- 8 ,0 0 6
93,732
87,162
6,570
- 5 ,0 6 5
- 9 ,3 4 7
104,675
101,430
3,245
-2 0 ,4 2 7
-1 7 ,6 3 8
217,029
199,486
17,543
130
- 4 ,8 8 5
61,012
59,197
1,816
- 1 ,0 0 6
-3 ,1 7 8
46,913
37,078
9,835
- 1 ,0 5 4
- 4 ,4 9 9
84,005
76,284
7,720
55
- 6 ,4 7 9
87,702
87,395
307
-2 1 ,3 3 7
-9 ,7 7 3
192,037
136,828
55,209
Memoranda items (cont.):
Occupancy expense o f bank premises, gross................................
Rental income from bank premises...........................................
Net securities gains or losses ( —) before income taxes.............
Extraordinary charges ( —) or credits before income tax..........
Reserves for losses on loans: 3
Balance at beginning o f yea r.........................................................
Additions due to mergers and absorptions..........................
Recoveries credited to reserves...............................................
Transfers to reserves..................................................................
Losses charged to reserves.......................................................
Transfers from reserves............................................................
Net loan losses ( —) or recoveries 4 ................................................
Reserves on securities:
Balance at beginning o f year.........................................................
Recoveries credited to reserves...............................................
Transfers to reserves..................................................................
Losses charged to reserves.......................................................
Transfers from reserves.............................................................
Balance at end o f y e a r....................................................................
Total net changes in capital accounts...................................................
Net income transferred to undivided profits................................
Common stock sold (net).................................................................
Preferred stock, capital notes, and debentures sold ...................
Premium received on new capital stock sold...............................
Transfers from loan and securities reserves..................................
Dividends declared..............................................................................
Transfers to loan and securities reserves (net o f tax effect). . . .
Other decreases....................................................................................
64,831
327,438
46,873
8,920
-9 0 1 -1 3 3 ,5 4 4
-1 2 3
4,811
53,312
6,961
- 7 ,5 4 3
822
1
64,392|
88,918
28,229
9,370
-7,1 5 1 1 - 5 ,7 6 5
-4 4 6
-1 ,3 2 7 !
187,240
43,313
-3 7 ,4 2 3
-4 ,8 3 6
27,238
8,064
- 2 ,0 2 9
737
50,806
15,850
191
-1 1 2
72,980
33,959
-4
-447
224,232 261,494
245,059 335,088
216,223 1,614,821
3,049
341
3 , 160l
851
11,582
4,693
6,494
13,619 !
8,4 7 0 ;
18,6428,640
38,932
40,681
238,370
34,423
53,982 ! 39,236;
76,917;
44,891
32,072
45,524
88,769!
62,585
266,3771
1,414 !
A ll
1,838
2,0941
702!
1,475;
221,025 1,635,235 256,759 i 341,741 : 228,871! 266,843
-3 6 ,2 8 9 -2 2 7 ,4 4 4 -2 5 ,5 7 3 \ -4 9 ,3 4 8 -3 7 ,0 7 4 : - 7 0 ,4 4 0
i
!
j
36,391 !
5,2 3 7 l
1,105
6,059
10,746
2,077
8i
3 2 ................. i.
19 !
1
12
79 j;
12
13
ni
283
4171
78
4,896 '
535!
2,0111
Q!
16
423
16'
258!!
2!
659
1,193
142
6.643
409 i
828!
4,301\
1,060 j 34,265
11,932
1,856
6J70\
791.3551; 129,801
114,573
'467:
171
165
29,407;i
6,377 i
3,169
127,810;; 36,688 !
16,019
139,6521 34,813 !
14,321
4,144
4,023 1
589
805,244'! 134,202 1 119,016
110,471
28,513
11,179
!
21,520
14,072 I
1,893
1 0 ...........
781
123
15
2,130!
1,620
401
7*
153:
19
3,921!
2,637
386
19,652\
13,113 I
1,904
160,050
112
14,565
40,333
49,874
577
164,609
- 3 6 ,4 4 4
228,182
46
371
34
43
3,267
22,136
600
36
7,588
665
1,768
27,926
175
1,437
165
3
5,490
95,365 ! 398,336
182,401 1 226,256 ! 162,8701 217,881
177,326 i 948,371
207,004 I 337,736 : 213,761! 270,612
5,659 i
4,511
3,781!
10,376
4,232
1,385
6,270 1
7,150
20,000
4,085
26,140;
3,838'
5,602*
4«
2,988 |
9,514
9,365 ;
12,987
1,137 i
3,287
K in !
213031
1,980
8.057
27,463
11,180
19,358
89,777 ! 54,774
41,961
88,027! 553,423 ! 96,764
137,134
85,596:
96,799
8,247 ; 57,678 1
9,755
17,402
8,463;
18,142
21,979;
8,647j
52,744 ! 13,484
25,071
20,929
96,706 : 68,856
340,240
141,198
544.160
100,169
89
5,423
1,170
17,451
2,461
4,935
? 744
H
1,156
8^064 !
6^660 !
974
49,399 i
17,848 I
9,121
221,190
48,186 ! 38,314
15,088 :
24,695
4,548
46,937
11,020 j
5,806
106,273
182,570
1,770
6,424
2,956
620
20,931
80,471
8,302
20,225
132,795
219,794
6,824
37,587
7,416
2,563
24,749
80,213
22,180
63,745
272,195
479,912
2,820
6,650
17,825
2,100
48,028
227,925
13,684
43,530
12,494
2,056
438
2,871
91
4,618
23,575
8,065
19,720
2,059
2,003
39,943
5,071
917
7,042
245
10,163
67,361
31,022
55,907
5,064
4,739
35,090
634
133,049
155
32,640
4,011
256
1,159
222,901
37,181
-3 ,3 8 0
-3 8 ,5 4 6
778,328
3,844
‘i9 jio 6
37,862
62,540
108,642
76,313
147,682
795
2,097
232,718
778,898
—58,745 —110,018
2,927
4,047
j
!
!
10,711
1,457
159
2,263
69
3,184
18,662
5,398
14,724
1,741
1,667
64,934
7,556
989
11,299
481
26,280
119,230
31,620
90,384
10,437
9,783
12,158
1,922 ,
279
2,484
119
3,076!
20,708
8,696
17,388 j
1,903
1,822 ,
18,180
3,708
368
4.764
138 i
4,645
32,720
14,432 1
27,317 |
3,176 1
3,114
12,255
2,164
440
2,620
71
3,540
21,865
8,517'
18,655!
1,933;
1,857.;
14,713
2,887
624
3.3*8
100
5,196
27,964,
10,212
23,741!
2,470!
2,356
37,188
7,182
1 ,217
7,741
352
10,139'|
66,697
28,751 !
55,115
5,669!
5,439|
7,653
1,802
332
1,625
64
2,668
14,661
5,350
12,492
1,335
1,283
6,265
1,326
261
1,283
28
1,712
11,357
5,070
9,661
916
885
9,614
2,126
298
1,998
120
3,471
18,221
6,477
15,616
1,690
1,643
Number o f officers and employees.....................................................
Number o f banks.....................................................................................
42,520
231
159,869
351
37,394 !
321 j
50,976
470;
48,482
361;
56,376j
546!i
98,833:
943!
33,321
459
16,721
489
32,825
807
i
1
A 97
BANKS, 1970
For notes see p. A-101.
!
1971 □ MEMBER
Assets, deposits, and capital accounts:
Loans gross (including Federal funds sold and resale pur
chased agreem ents)...................................................................
U.S. Treasury securities 1.................................................................
Other U.S. Govt securities (agencies and corporations) 1.........
Obligations o f States and political subdivisions 1.......................
All other securities 1..........................................................................
Cash assets............................................................................................
Total assets 5........................................................................................
Time and savings deposits................................................................
Total deposits.......................................................................................
Total capital accounts plus total reserves.....................................
Equity capital plus total reserves....................................................
JUNE
1
82,873
20,295
-2 7 ,3 2 3
848
A 98
INCOME, EXPENSES, AND DIVIDENDS OF RESERVE CITY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT
(Income etc., in thousands, and asset and liability items in millions, o f dollars)
Boston
New
York
Phila
delphia
Cleve
land
Rich
mond
Atlanta
Chicago
St.
Louis
Minne
apolis
Kansas
City
Dallas
San
Francisco
729,601
696,994 2,226,694
413,654
229,383
389,999
625,406 3,850,443
444,427
802,065
501,905
479,018
1,508,426
281,095
159,293
261,448
429,297 2,686,107
Operating expenses—Total...........................................
Salaries and wages o f officers and employees
Officer and employee benefits..................................
Interest paid o n :
Time and savings deposits..................................
Federal funds purchased and securities sold
with repurchase agreement.........................
Other borrowed m oney........................................
Capital notes and debentures..............................
Occupancy expense o f bank premises, net..........
Furniture, equipment, etc.........................................
Provision for loan losses..........................................
Other operating expenses.........................................
Income before income taxes and securities gains or
losses..........................................................................
Applicable income taxes...........................................
Income before securities gains or losses...............
Net securities gains or losses ( —) after taxes. ..
Extraordinary charges ( —) or credits after taxes
Less minority interest in consolidated subsi
diaries ...................................................................
14,996
94,810
10,878
31,223
16,746
27,102
60,196
15,535
2,890
16,210
31,792
103,680
32,472
292,111
31,655
91,322
57,760
43,392
159,951
32,408
9,678
25,483
34,572
219,915
4,472
24,479
106
34,118
2,116
37,503
16,033
17,578
6,598
117,219
5,782
58,539
24,653
27,191
7,606
53,665
1,667
27,999
28,703
14,352
3,604
42,506
4,312
24,279
23,987
21,684
14,490
156,834
9,464
114,575
31,613
43,655
1,419
25,507
1,345
13,420
10,624
10,636
581
12,812
390
12,835
3,642
10,411
1,276
21,916
4,541
23,790
7,550
15,644
2,886
53,243
5,969
23,801
36,882
312,484
26,737
340,807
73,398
107,328
55.301
2,632
27,128
8,276
15,500
41,793
239,247
15,452
102,860
163,853
129,799
4,441
14,047
161,975
200,945
5,310
13,054
4,389
20,242
8,367
10,830
8,369
18,742
32,145
95,345
11,644
10,023
13,095
3,757
5,431
6,711
8,379
9,644
68,927
78,810
397,327 4,227,888
106,501
943,396
17,051
181,701
472,658
118,930
27,482
902,391
192,978
28,510
560,069
159,867
25,641
547,098 1,777,737
139,528
351,107
24,159
66,173
314,714
72,731
13,063
170,475
36,670
6,236
298,028
77,216
10,728
1,211
475,432 3,252,616
91,273
789,731
125,553
14.301
68,319
1,068,482
150,347
357,942
181,534
150,613
640,136
99,378
47,241
83,431
168,947
1,352,252
51,714
14,380
1,977
18,700
14,938
8,793!
94,955
408,829
237,603
26,723
203,193
93,545
85,874
978,543
49,854
6,614
4,594
22,659
16,592
10,764
64,824
70,900
8,343
2,622
34,958
27,688
16,994
161,456
25,258
4,258
3,363
29,973
24,863
10,127
95,185
45,983
28,598
3,113
22,482
24,962
20,989
86,672
202,985
55,307
8,826
75,994
50,717
54,360
272,132
43,011
1,596
2,105
12,986
12,434
8,905
48,505
26,581
8,660
695
4,644
10,250
2,532
26,967
30,074
4,179
1,383
10,087
15,366
9,569
55,996
80,963
11,479
871
9,530
18,703
11,802
67,563
198,413
31,700
12,090
151,873
80,826
69,937
440,240
106,022 1,100,158
42,870
379,994
63,152
720,164
-5 5 ,4 1 7
2,960
140,121
46,514
93,608
-2 ,3 6 3
286,832
74,183
212,649
-1 3 ,4 5 5
369
169,532
58,876
110,656
- 1 ,0 7 0
-2 9 3
149,897
52,121
97,776
- 1 ,2 3 4
-6 7 4
448,958
153,069
295,889
-2 2 ,0 6 1
- 2 ,2 7 1
98,941
35,417
63,523
- 1 ,1 7 9
956
58,908
24,635
34,273
-6 4 3
91,971
32,847
59,124
-7 7
-2 2 4
149,974
47,686
102,289
-5 1 3
597,827
183,586
414,241
-3 ,1 2 4
- 1 9 ,7 0 0
-1
-2
102
Net income.
63,147
667,706
91,244
199,562
109,291
95,867
271,554
63,302
33,629
58,821
101,877
391,415
Cash dividends declared:
On common stock. . . .
On preferred sto ck ... .
30,735
435,563
2,931
48,664
91,345
45,916
638
44,720
140
135,310
1,539
26,300
14,875
41,011
43,695
25
198,643
Memoranda items:
Income taxes applicable to 1970 operating in
come ......................................................................
Tax effect of:
N et securities gains or losses ( —), etc..............
Transfers—Capital accounts to IRS loan loss
reserve 2............................................................
Total provision fo r income taxes, 1970..................
Federal......................................................................
State and lo ca l........................................................
42,870
379,994
46,514
74,183
58,876
52,121
153,069
35,417
24,635
32,847
47,686
183,586
569
-6 0 ,3 8 7
- 2 ,2 3 2
-13,041
- 1 ,7 8 3
-3 ,9 7 7
-2 0 ,5 1 7
-4 0 7
-6 1 5
-4 5 1
-121
-2 1 ,9 6 7
-3 ,5 5 3
39,885
30,362
9,523
-5 7 ,7 9 2
261,813
192,919
68,894
-4 ,7 1 2
39,570
39,495
74
-7 ,0 4 3
54.099
54.099
- 4 ,1 9 9
52,894
47,974
4,920
-5 ,2 2 0
42,923
41,925
998
-1 0 ,5 1 7
122,034
112,719
9,315
- 3 ,8 5 5
31,154
30,377
778
-1 ,3 8 8
22,631
17,735
4,897
- 3 ,6 8 4
28,711
26,029
2,683
-4 ,1 0 3
43.461
43.461
- 6 ,3 2 4
155,294
105,165
50,130
1971
612,780 1,189,223
324,218 3,679,962
□ JUNE
503,348 5,328,045
BANKS, 1970
Operating income—T otal.............................................
L oans:
Interest and fees......................................................
Federal funds sold and securities purchased
with resale agreement...................................
Securities—Interest and dividends: 1
U.S. Treasury securities.......................................
Other U.S. Govt, securities (agencies and
corps)................................................................
Obligations of States and political subdivisions
All other securities.................................................
Trust department incom e.........................................
Service
@FedFRASER