Full text of Federal Reserve Bulletin : June 1974

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FEDERAL RESERVE

BULLETIN

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FEDERAL RESERVE BULLETIN
NUMBER 6 □ VOLUME 60 □ JUNE 1974

CONTENTS

407

Construction, Real Estate, and Mortgage Markets

420

Staff Economic Studies: Summary

422

Member Bank Income in 1973

429

Treasury and Federal Reserve Foreign Exchange Operations:
Interim Report

431

Record of Policy Actions of the Federal Open Market Committee

445

Law Department

469

Announcements

473

Industrial Production
Financial and Business Statistics

A

1

Contents

A

3

Guide to Tabular Presentation

A

3

Statistical Releases: Reference

A

4

U.S. Statistics

A

60

International Statistics

A 100

Board of Governors and Staff

A 102

Open Market Committee and Staff; Federal Advisory Council

A 103

Federal Reserve Banks and Branches

A 104

Federal Reserve Board Publications

A 109

Index to Statistical Tables
Map of Federal Reserve System on Inside Back Cover

EDITORIAL
COMMITTEE




J. Charles Partee
Ralph C. Bryant
Lyle E. Gramley

Joseph R. Coyne

Robert Solomon
Kenneth B. Williams
Elizabeth B. Sette

The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial
committee. This committee is responsible for opinions expressed except in official
statements and signed articles. Direction for the art work is provided by Mack Rowe.

Construction,
Real Estate, and
Mortgage Markets

Outlays for new construction this spring measured in real terms
were continuing to trend downward from the record rate reached
more than a year earlier. Construction expenditures for privately
owned residential units were running well below the 1973 peak
even in current dollars. But constant-dollar outlays for private
nonresidential construction were holding at earlier highs, and ex ­
penditures for public construction were relatively strong. Mean­
while, conditions in mortgage markets tightened sharply again as
credit terms in general became more restrictive in a situation of
exceptionally rapid inflation and heavy over-all demand for funds.
CHART 1 SAVINGS FLOWS shift down after 2-quarter
recovery and slight rise in RESIDENTIAL
MORTGAGE COMMITMENTS




“ Net savings inflows” are quarterly averages for savings and loan associations and mutual
savings banks at seasonally adjusted annual rates. “ Mortgage commitments outstanding,”
which are mainly residential, are seasonally adjusted end-of-quarter totals for all savings
and loan associations and for New York mutual savings banks. Commitments data include
loans in process. Latest data, April, preliminary.

408

FEDERAL RESERVE BULLETIN □ JUNE 1974

Flows of consumer-type savings to thrift institutions, as well
as to commercial banks, have weakened this spring as yields on
market securities have become more attractive to investors. Earlier,
such savings flows had been recovering strongly, supported by a
number of factors including the higher maximum savings rates
permitted the depositary institutions last July, a temporary reduction
in market rates after September, and consumer uncertainty about
the likely course of general economic activity in view of the energy
crisis and the broad, further escalation in prices.
Mortgage repayment flows, based on the expanded portfolios
acquired during the recent record housing boom, have continued
large this year, and a sizable part of outstanding mortgage commit­
ments associated with that boom has been worked down. But with
small investors turning increasingly from regular savings and cer­
tificate accounts to market instruments offering more enticing
yields, lender concern about actual and prospective net savings
inflows has grown, and the pace of new commitments for mortgages
has moderated in the primary market. Moreover, closer screening
of potential mortgage borrowers has been resumed and indications
are that downpayment requirements and related nonrate terms on
new commitments for mortgages have begun to firm again.
To help sustain the pace of private housing starts over the period
ahead, additional market support was announced by the President
on May 10. Essentially, the administration’s program provides
subsidies in various forms to minimize upward rate pressures on
mortgage borrowers, involving potentially more than 300,000 con­
ventional and other residential units over the rest of this year.
REGULATORY AND
RELATED ADJUSTMENTS




Altogether, a number of ameliorative institutional adjustments of
both short- and long-term significance for mortgage market devel­
opments have been made in recent months. Of particular note,
to permit borrowers in the nonsubsidized mortgage sector to bid
more actively for available funds, regulatory ceiling rates for
Government-underwritten mortgages were increased lA per cent to
a new high of 8 % per cent in early May, the second such upward
adjustment this spring. To minimize the problem of high interest
rates for eligible borrowers desiring mortgages insured by the
Federal Housing Administration or guaranteed by the Veterans
Administration and to limit the number of points that sellers of
homes might otherwise have to pay under the regulatory ceilings,
the Government National Mortgage Association earlier this
year had already instituted a revised tandem plan for loans at a
fixed 7% per cent rate on about 200,000 single- and multifamily
units. As announced by the President in May, GNMA will now
provide for an additional 100,000 units to follow under similar




CONSTRUCTION, REAL ESTATE, AND MORTGAGE MARKETS

409

subsidy arrangements at an 8 per cent contract rate. Under this
tandem plan, GNMA purchases eligible mortgages at a price no
more than 4 points below par, then resells the loans at prevailing
market prices and absorbs any price differential involved.
To bolster the primary market in the major conventional mort­
gage sector where the strategically important savings and loan
associations have traditionally concentrated, the Federal Home
Loan Bank System in May also began to offer subsidized advances
to eligible thrift institutions. Such advances may amount to as much
as $4 billion this year, and the interest rate will be at least V2
of a percentage point below the Home Loan Bank System ’s own
borrowing cost on 5 -year obligations. Over the past year, the
Federal Home Loan Bank Board has instituted a number of other
adjustments mainly affecting the operational scope of Federal
associations. Last September, for example, the FHLBB began a
program for 6 -month standby commitments for advances at 8 V2
per cent. It also broadened the primary lending area of each
association by permitting it to originate mortgages in the entire
State as well as within a 100-mile radius of the home office
regardless of State lines.
In the still relatively young secondary mortgage market for
conventional loans, a number of innovations have also been intro­
duced in recent months. In particular, the Federal National Mort­
gage Association, last April, announced expansion of its purchasing
program to include conventional mortgages on owner-occupied
dwellings in condominiums and planned unit developments. Such
loans are particularly complex because they involve ownership of
certain elements in common. Also the Federal Home Loan Mort­
gage Corporation for the first time initiated purchases of loans more
than 1 year old; and in May— under the President’s special housing
support program— it began to make forward purchase commitments
on a below-market-interest basis. The potential limit for such
commitments by the year-end has been set as high as $3 billion.
In addition, to improve the potential for secondary market
transactions among individual lenders, plans under essentially pri­
vate auspices were completed recently for implementing an auto­
mated mortgage market information network— AMMINET. This
system, which is intended to meet the needs of all lender groups,
began on a pilot basis in mid-June.
In the Government-underwritten loan area, meanwhile, GNMA
moved to broaden access to its program for mortgage-backed
securities— now in its fifth year— by reducing the size of individual
pools needed for such issues to $1 million for 1-family mortgages
and to $500,000 for multifamily mortgages. Previously, the mini­
mum size of such pools had been $2 million for both categories.

410

NEW CO NSTRUC TIO N




FEDERAL RESERVE BULLETIN □ JUNE 1974

Outlays for new construction in May approximated a seasonally
adjusted annual rate of $136 billion in current-dollar terms. This
was up slightly from the first-quarter average and nearly matched
the highs in the first and third quarters of 1973. In real terms,
however, such outlays were down somewhat further from the
first-quarter average and about an eighth below the peak in the
first quarter of 1973.
Construction costs. Construction costs have continued to move
upward this spring— in May they approximated 164 per cent of
the 1967 average, according to the Census Bureau’s composite cost
index. Over the first 5 months of 1974 the year-to-year rise in
the index exceeded 10 per cent, compared with 9 per cent in 1973
as a whole and 7 per cent in other recent years. Wage settlements
for construction workers had been relatively moderate under the
monitorship of the Construction Industry Stabilization Commit­
tee— which had been in operation from April 1971 until the expira­
tion of wage and price controls last April 30. Most of the contracts
involved had been limited to 1 year, and w ill, therefore, be due
for renegotiation at higher rates this year. At the same time, land
costs have continued to rise, particularly for close-in sites in

CHART 2 Total NEW CONSTRUCTION OUTLAYS clearly
off from peak in real terms with

RESIDENTIAL sharply reduced even in current dollars

Census Bureau data on new construction put in place at seasonally adjusted annual rates.
Recent data, preliminary. May, F.R. estimate.

CONSTRUCTION, REAL ESTATE, AND MORTGAGE MARKETS

B U S IN E S S CONSTRUCTION

Census monthly data on currentdollar value of new construction put
in place at seasonally adjusted annual
rates. Recent data, preliminary. Lat­
est data, April.




411

localities where sewer and water as well as fuel connections are
available.
Prices of a number of building materials, although in many cases
under controls until April, have risen sharply since last autumn,
notably for items based on oil and related products. With the
number of residential units under construction still very high and
with nonresidential construction activity at an advanced rate, supply
bottlenecks in many instances have continued to add pressure on
prices of materials required by builders.
Nonresidential construction. Seasonally adjusted current-dollar
expenditures for new private nonresidential construction this spring
were continuing above the advanced pace reached during the
winter. Although mainly reflecting higher costs, outlays for office
buildings, shopping centers, and related types of commercial struc­
tures— which had risen considerably over the past 3 years— have
tended upward further. Moreover, in the case of outlays for indus­
trial plants— already up sharply from their low in 1972— recent
surveys of expected plans indicate another substantial year-to-year
increase for 1974 as a whole. Over-all expenditures for other types
of nonresidential buildings— particularly hospitals and religious
structures— have also been at an advanced rate.
Current-dollar outlays for public construction this spring were
continuing near their first-quarter peak. State and local government
outlays, which account for the major share of the total, have been
relatively large even though yields required by investors in munici­
pal bonds have been exceptionally high and Federal support has
remained selective. While building needs for primary schools have
eased as growth in the school-age population has slowed, demands
for health, rapid transit, energy, and related facilities have in­
creased.
Residential construction. Outlays for private residential con­
struction, which lag starts, have leveled off this spring after a
protracted drop concentrated mainly in the latter part of 1973 and
early 1974. Although the monthly rate of private housing starts
since December has fluctuated even more than is usual, the firstquarter average was somewhat above the low in the fourth quarter
of last year and was nearly a third above the seasonally adjusted
annual rate— 1.24 million units— that had marked the end of the
previous downturn in early 1970. Moreover, while starts turned
downward sharply in May, the April-May average was still fairly
near the first-quarter pace.
Even though private housing starts during 1973 experienced one
of the sharpest declines on record, the annual total exceeded the
2 million-unit mark for the third consecutive year and, along with
1971, was second only to the extraordinary 2.4 million level
reached in 1972. Moreover, with domestic shipments of new mobile
homes— which are used mainly for residential purposes— very near




412

FEDERAL RESERVE BULLETIN □ JUNE 1974

the record total in 1972, the combination of new shelter units in
1973 aggregated over 2.6 million, almost in line with the Pres­
ident’s over-all production schedule for that calendar year, based
on the 10-year goal set by Congress in 1968.

CHART 3 PRIVATE HOUSING STARTS generally
hold well above earlier lows, with
COMPLETIONS still outpacing starts;

MOBILE HOME shipments down further

Census data for private housing starts and completions and Mobile Home Manufacturers
Association data for domestic shipments of new mobile homes, converted to seasonally
adjusted annual rates by Census and to quarterly averages by F.R. “ Multifamily” includes
2 or more units. Latest data, preliminary, April, except for starts, which are April-May average.

In contrast with other recent contractions, starts of multifamily
units showed about the same relative decline as single-family units
during 1973. Over the first 5 months of this year, however, multi­
family starts dropped further, reflecting in part slower demands
for condominiums. Also, completed multifamily structures, which
require a longer lead time and a much longer production period
than do single-family units, have continued to reach the market
in volume.
The limited flow of new mortgage commitments has not been
the only factor that has moderated the pace of total housing starts
this year. Sewerage and related moratoria have remained a con­
stricting influence in many localities. In addition, the widespread
recognition, which emerged last winter, of problems related to the
cost and availability of gasoline and other types of energy has begun
to force a re-evaluation of traditional assumptions about the com ­
parative advantages of particular sites by builders and buyers alike.
While the market potential of some locations— notably in or near
the central cities and the immediate suburban fringes— has been

CONSTRUCTION, REAL ESTATE, AND MORTGAGE MARKETS

FHA/VA SH ARE OF
HOUSING STA R T S

Based on data from Census Bureau
for private housing starts and from
HUD and the VA for units started
under FHA or VA inspection. Latest
data, Q l, preliminary.




413

enhanced by this development, it has been lowered in other areas.
Moreover, unlike the situation prior to 1970, demand backlogs have
been materially reduced at a time when construction costs have
continued to rise, increased attention has been focused on the
possibilities for rehabilitation of older units, and the large overhang
of units still under construction has remained high.
Even so, the demographic potential for new household formation
remains exceptionally strong. And while the tendency of many
home purchasers, including single persons, to buy ahead of re­
quirements for both permanent and second homes has moderated
considerably, the rapid price appreciation of favorably located
properties has continued to attract qualified buyers for both new
and existing units.
Viewed regionally, starts in the first quarter of this year turned
upward in all major sectors of the country except the West. Starts
in that region had accounted for no more than a fifth of the national
total in 1973, compared with as much as a fourth in 1971. By
contrast, in 1973, for the North Central States— where starts totaled
more than in 1972— the share reached over a fifth. For the South
and Northeast the relative shares held at 44 and 14 per cent,
respectively.
Mobile home shipments, which had reached new highs during
the 3-year boom in housing starts, also dropped appreciably in
the second half of 1973. Moreover, in the first quarter of this year,
such shipments were at a seasonally adjusted annual rate of only
464,000— the lowest since the second quarter of 1971; and in April
they declined again. Prices of such units, while still not high by
conventional housing standards, have increased further over the
recent period— reflecting rising costs of materials and labor, up­
graded construction requirements, and increased emphasis on larger
units. In addition, availability of mobile home park sites has
remained a limiting factor. Financing also has generally become
more expensive.
During the first quarter of this year, private housing starts under
available low- and moderate-income subsidy programs— some of
which were still curtailed by the administrative moratorium insti­
tuted in early 1973— were running well below the already reduced
rate of a year earlier. For 1973 as a whole, subsidized starts
of all types totaled fewer than 200,000 units, compared with a record
426,000 in 1971. Partly reflecting this development, starts under
all Government-underwritten programs accounted for not much
more than a tenth of total private starts in 1973 and the first quarter
of 1974. This compared with about three-tenths in 1971 and a
record high of more than two-fifths in 1955.
Considering home prices in general, the median price of new
single-family units sold by merchant builders in April was $35,900,
more than $3,000 higher than a year earlier and still above the

414

PRICE IN D E X -N E W HOMES

Census quarterly index based on
fixed 1967 proportions of eight char­
acteristics of new one-family houses
sold by merchant builders. Transac­
tions prices from which the index is
derived include value of the devel­
oped lot, direct and indirect selling
expenses, and profits. Latest data,
Q l, preliminary.

DWELLING UNITS

j _______ |_______ t

: 0.5

Census data for private dwelling
units only, with completions at sea­
sonally adjusted annual rates con­
verted to quarterly averages by F.R.
Units under construction are end-ofquarter totals seasonally adjusted by
F.R. All data exclude mobile homes.
Latest data, April, preliminary.




FEDERAL RESERVE BULLETIN □ JUNE 1974

median price of homes held for sale in that month. Allowing for
changes in the mix of homes sold in terms of size and other
characteristics, the average price increase per unit for 1973 as a
whole was 10 per cent— the sharpest year-to-year rise in the history
of the series, which goes back to 1963. Regionally, the largest
comparable increase in 1973 was for new homes sold in the
West— 15 per cent.
For existing homes the median sales price in April was $31,690,
according to reports from the National Association of Realtors.
As in other recent months, such prices, which are not adjusted
for compositional changes, were somewhat more than a tenth above
a year earlier, compared with a year-to-year increase of about 8
per cent from 1972 to 1973.
By contrast, average increases in typical rents for all types of
residential units so far this year have remained comparatively
moderate even though repair and related operating costs, including
local real estate taxes, have accelerated further. In fact, median
initial rents paid in the first quarter of this year for new nonsubsi­
dized apartments completed in the fourth quarter of last year were
up only slightly from those for comparable units a year earlier.
Thus far this year, demand for new rental units coming on the
market has been relatively strong, despite scattered reports of
overbuilding in some areas. Altogether, by the end of the first
quarter as much as 64 per cent of new privately financed, nonsub­
sidized apartment units intended for rental use and completed in
the previous quarter had already been leased. This compared with
67 per cent a year earlier, but it exceeded the absorption ratio
2 years earlier when the volume of completions of comparable
apartments had been somewhat lower.
On the other hand, for the combined total of all types of existing
as well as new rental units available for occupancy, vacancy rates
rose to an average of 6.2 per cent in the first quarter of the year.
Although the highest for any first quarter since 1967, this average was
still substantially below the peak of 8.5 per cent in early 1965.
Vacancy rates for homeowner properties continued unchanged from
last year’s advanced fourth-quarter average of 1.2 per cent, even
though slower sales of condominiums and other units intended
initially for owner occupancy have forced some additional supply
into the “ for rent” category this year. Vacancy rates in all four
major Census regions in the first quarter also averaged moderately
above year-earlier levels.
Meanwhile, merchant builders’ resources have continued under
strain as stocks of new homes for sale at all stages of construction
have declined only somewhat from last winter’s peak despite some
improvement in the rate of sales. And even with the total number
of private dwellings under construction still exceptionally high,

CONSTRUCTION, REAL ESTATE, AND MORTGAGE MARKETS

415

CHART 4 RESIDENTIAL VACANCY RATES up only
moderately from recent lows

Census quarterly data. Vacancy rates relate to vacant dwellings available for rent or sale.
Latest data, Ql.

completions of all types of residential units were down sharply
in April from their advanced first-quarter average.
MARKETS




Mortgage commitments outstanding for residential properties,
which had shown some recovery earlier this year, apparently shifted
direction again in late spring. While rate increases in general have
been substantially less in long-term than in short-term markets,
yields on both construction loans and permanent mortgages have
advanced sharply since March. At the same time, resort to the
secondary market support afforded by FNM A, FHLMC, and other
nondepositary sources has increased again. In the market for loans
on income properties, contract interest rates and other terms have
apparently also stiffened in recent months.
With an unusually large volume of unseasoned mortgages now
outstanding at a time of rapidly rising prices and lower real
incomes, stricter screening of borrowers has also been revived as
delinquency rates on all types of loans, including construction
loans, are indicated to have tended upward. By the first quarter
of this year, for example, delinquency rates on permanent home
mortgages held by institutions that report to the Mortgage Bankers
Association of America averaged the highest for any first quarter
in the two-decade history of the series— 4.0 per cent, compared
with 3.6 per cent a year earlier and with 3.2 per cent in the first
quarter of 1971. While this uptrend has reflected mainly defaults
on mortgages underwritten by FHA under special programs involv­
ing lower-income housing, it has also been associated with prob­
lems in the nonsubsidized sector as well.
Home mortgage terms. Contract interest rates for new commit­
ments on conventional first mortgages on new homes averaged a




416

FEDERAL RESERVE BULLETIN □ JUNE 1974

CHART 5 Mortgage yields reach new peaks this spring, but
with BOND YIELDS also advanced,

YIELD SPREAD turns negative;

DISCOUNTS on FHA mortgages higher

Mortgage data based on HUD (FHA) field-office reports. For “ conventional,” average
interest rates are for first mortgages on new homes. For “ FHA-insured,” weighted averages
of private secondary market bid prices for certain new-house mortgages (shown at a discount
from par in the bottom panel) converted to annual yield; thin lines indicate months affected
by adjustment in contract interest rate except in some cases where estimates have been
provided by F.R. For corporate bonds, average of yields on new issues (M oody’s Aaa,
Aa, and A adjusted to Aaa utility bond with 5-year call protection). Yield spread is for
conventional mortgages. Latest data, May.

record 9.15 per cent in May. This was 65 basis points above the
moderately reduced average reached in March and about 20 basis
points higher than the previous peak last September. For conven­
tional loans on existing homes, the average rate also was at a record
9.15 per cent in May, according to the Department of Housing
and Urban Development. While several States with relatively low
usury ceilings for conventional mortgage rates have adjusted such
ceilings upward this year, a number of States— mainly in the
South and East, and accounting for about two-fifths of the
Nation’s population— still had legal maxima below prevailing mar­
ket requirements. Moreover, the gross yield differential in favor
of home mortgages as compared with corporate bonds remained
negative in May— a factor of particular importance to diversified

CONSTRUCTION, REAL ESTATE, AND MORTGAGE MARKETS

FNMA PU RC H A SE AUCTION
YIELD — FHA/VA

Data from FNMA based on results
of generally biweekly auctions for
Government-underwritten mortgages
converted to monthly averages by
F.R. Yields to FNMA shown are for
4-month forward-purchase commit­
ments (assuming a 12-year prepay­
ment period for certain 30-year Gov­
ernment-underwritten
mortgages)
and are gross before deduction of
mortgage servicing fee, without al­
lowance for commitment fee and re­
quired purchase of FNMA stock.
Latest data, auction of June 3.

LOAN/PRICE RATIO

Monthly data from FHLBB, with
cooperation of FDIC, are for con­
ventional first mortgages at time of
closing by major lender groups on
single-family homes for purchase
only. Data beginning 1973 are not
strictly comparable with those for
earlier years because of sampling and
other changes. Latest data, May,
preliminary.




417

lenders given the higher administrative expenses mortgages entail
in any case.
The recent upsurge in mortgage rates was partly the result of
a slackening in net savings inflows to thrift institutions from the
earlier improved pace and a marked shift in the availability of
mortgage funds in almost all geographic areas. By late May, in
fact, a sample survey of savings and loan associations conducted
weekly by the FHLMC indicated that funds were in short supply
relative to demands in all, or nearly all, of the 12 Federal home
loan bank districts, compared with none of the districts in early
April. The dollar volume of mortgage commitments outstanding at
the thrift institutions has remained exceptionally high by pre-1971
standards, even after allowance for larger per-unit loan amounts.
Nevertheless, it had shown only a limited recovery earlier this
year. And most recently, aggregate pressures for credit for all
types of loans, including housing, have tended to reduce par­
ticipation in the primary mortgage market by commercial banks
and other diversified lenders.
In the private secondary market for Government-underwritten
mortgages, the increase in yields has also been marked. In May
such yields on 8 3A per cent mortgages of this type scheduled for
immediate delivery averaged 9.46 per cent, up 92 basis points from
the recent low of 8.54 per cent reported for February when the
regulatory maximum was 8V4 per cent. Even at the higher 8 % per
cent rate, discounts, which for the most part are payable directly
by sellers of new or existing units financed by these mortgages,
still remained a problem— at an average of about 5 points in May.
In the June 3 FNMA-free-market auction of forward-purchase
commitments on eligible FHA-VA home mortgages, yields rose
6 basis points further to a new high of 9.54 per cent. Offerings
to FNM A, however, remained well below the near-record volume
registered in late March and early April when, among other things,
the limit on the maximum amount allowed to qualify for a compet­
itive bid had been temporarily suspended. In the related auction
for commitments to buy conventional mortgages— mainly lowdownpayment loans— the average yield acceptable to FNM A, at
9.70 per cent, was also continuing to rise. So was the yield asked
by FHLMC on comparable nonsubsidized mortgage purchases.
In early May, maturity and loan-to-value terms on conventional
first mortgages actually closed on single-family homes— under
commitments made some months earlier— were generally at least
as liberal as they were last March. Reflecting the tightening that
had developed last year, however, average downpayment terms—
particularly for loans on existing units— remained appreciably more
stringent than in the spring of 1973. Nevertheless, with average
prices of homes sold continuing upward, loan amounts in general
were well above year-earlier levels.

418

MORTGAGE DEBT
EXPANSION




FEDERAL RESERVE BULLETIN □ JUNE 1974

Seasonally adjusted net mortgage debt formation in the first quarter
of this year is indicated to have edged upward slightly from the
reduced rate in the fourth quarter of 1973. However, at an annual
rate approximating $58 billion, the pace of mortgage debt expansion
was substantially below both the peak rate a year earlier and the
record for 1973 as a whole. In that year the net increase in total
mortgage holdings by all lenders had exceeded $70 billion as
compared with about $65 billion in 1972 and amounts much less
than $30 billion in most other recent years.
Mortgages on all types of nonfarm properties shared in the
moderate upturn in outstanding debt in the initial quarter of 1974.
But even in the nonresidential sector, the degree of expansion was
limited. Moreover, it was associated in part with the larger average
loan amounts required to finance both new and existing mortgages
under prevailing inflationary conditions. The net flow of con­
struction loans for residential properties, on the other hand, ap­
peared to be rising somewhat more than seasonally in early spring,
and the large number of dwelling units still reaching completion
was continuing to require a sizable amount of permanent financing.
Among the major lender groups, savings and loan associations
accounted for substantially the largest share of the net increase
in mortgage debt outstanding on both single-family and multifamily
properties in the first quarter of the year. They also accounted for
a significant proportion of the improved net flow of loans on
commercial properties. However, to meet their mortgage commit­
ments, by late March such associations were beginning to increase
their net borrowing from the Federal home loan banks again, despite
a record of about $7 billion of such borrowing in 1973 as a whole.
In the first quarter of this year, net mortgage acquisition by
commercial banks, which had accounted for a major share of the
over-all increase in the fourth quarter of last year, declined both
absolutely and relatively. The decline reflected continued pressure
for all types of bank credit, including loans to mortgage companies,
real estate investment trusts, and other mortgage market partici­
pants. Net mortgage acquisition by mutual savings banks also
remained relatively limited; that by life insurance companies, which
had revived somewhat in recent years— although entirely in income-property loans— appeared to have changed little in early
1974.
Among other mortgage lenders, net purchases by FNMA were
relatively low in the first quarter of the year. This development
largely reflected the limited volume of FHA-insured mortgages
being originated. It also was associated with a considerably in­
creased need for such loans by mortgage companies to meet an
expanded demand that had developed at that time from large
pension funds and other investors for GNMA-guaranteed pass-

CONSTRUCTION, REAL ESTATE, AND MORTGAGE MARKETS

419

CHART 6 NET INCREASES in MORTGAGE DEBT I
below earlier peaks by type of property

as LENDER SHARES shift further
ALL O TH ERS

LIFE INSURANCE
COMPANIES
COMMERCIAL
BANKS
MUTUAL SAVINGS
BANKS

SAVINGS AND
LOANS




Quarterly data by type of property estimated— and converted to seasonally adjusted annual
rates— by F.R. as required to supplement reports of Federal agencies and private sources.
Farm mortgage debt net increases are included in net increases shown for “ total.”
Distribution of net changes by type of holder based on annual totals except for 1974, Q l.
Latest data, Q l, preliminary.

through securities. The dollar amount of mortgages in the pools
that are required to back such issues exceeded $10 billion by the
end of March 1974, up more than $4 billion from a year earlier.
With bond market yields becoming much more attractive to inves­
tors this spring, reliance on GNMA-guaranteed “ pass-throughs”
has declined. Also, expansion of mortgage holdings by the real
estate investment trusts has been less than in other recent periods
of tight money market conditions. Lately, however, net mortgage
purchases by FNMA and particularly by the FHLMC have begun
to increase again.
□

Staff Economic Studies
The research staffs of the B oard of Governors
of the Federal R eserve System and of the Fed­
eral R eserve Banks undertake studies that cover
a wide range o f economic and financial sub­
je c ts , and other staff members prepare papers
related to such subjects. In some instances the
Federal R eserve System finances sim ilar studies
by members o f the academ ic profession.
From time to time the results of studies that
are of general interest to the economics profes­
sion and to others are summarized— or they may
be printed in full— in this section of the Federal
Reserve B u l l e t i n .

In all cases the analyses and conclusions set
forth are those of the authors and do not neces­
sarily indicate concurrence by the B oard of
G overnors , by the Federal R eserve Banks , or
by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the B u l l e t i n
are available in mimeographed 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 ■*‘Staff Economic S tu dies” that
enumerates the studies fo r which copies are
currently available in that form.

Study Summary

SHORT-RUN VARIATIONS IN THE MONEY STOCK—SEASONAL OR CYCLICAL?
by Herbert M. Kaufman—Arizona State University ,
and Raymond E. Lombra — Staff’ Board of Governors
P resented a t a m eeting o f the E conom etric Society in D ecem ber 1973 and revised in early 1974.

Although there is considerable disagreement
over the exact role of money in the economy—
that is, the nature of its independent causal
significance— few deny that the money stock is
one of a group of key economic variables to
be monitored closely. In contrast to the volumi­
nous research on the determinants of the quan­
tity of money, it is surprising that the quality
of the data has not received greater attention
in the literature to date. Therefore, this study
examines one aspect of the quality of the money
stock data— the nature and significance of sea­
sonal variation.
Two theses are developed in the paper: (1)
The method used to seasonally adjust the pub­
lished money stock series, as well as many
other economic time series, makes it difficult
to articulate and identify what should in fact
420


be classified as seasonal or cyclical movements
in the data; and ( 2) the distorting influence of
the seasonal adjustment procedure raises ques­
tions about past empirical research that utilized
adjusted money stock data.
These two propositions are supported by the
results of frequency domain tests utilizing spec­
tral analysis and time domain tests employing
regression analysis. The frequency domain tests
suggest that the adjustment procedure produces
temporal distortions and excessive smoothness
in the series. Simple reduced-form regression
equations are then presented to substantiate the
hypothesis that the statistical relation between
the money stock and other variables, such as
national income, may be very sensitive to the
procedure employed to seasonally adjust the
money stock. Further evidence corroborating

the empirical results of the statistical tests is
detailed in a discussion describing how postwar
monetary policy and the ratio-to-movingaverage technique have combined to obscure the
differences between seasonal and cyclical
movements in the money stock as such move­
ments appear in the adjusted data.
The last section of the paper specifies and
estimates a simple structural model of money
stock seasonality as a possible alternative to
current procedures. Although the model is a
relatively simple one, its grounding in economic
theory and the results thus far attained suggest
that such an approach to seasonality would be
fruitful to pursue. Through the use of a more




refined structural model, it should be possible
to separate past cyclical and seasonal variations
in the money stock and to relate them to move­
ments in economic activity.
A major implication of the findings presented
in the paper is that the confluence of seasonal
and cyclical forces operating on short-run
movements— month to month, and quarter to
quarter— in key published series, such as the
seasonally adjusted money stock, may often
generate misleading signals for those trying to
evaluate the thrust of policy and its impact on
economic activity. Accordingly, short-run
movements in the money stock should be inter­
preted with great caution.
□

421

Member Bank Income in 1973
Net income of member banks as a group in­
creased by $612 million, or nearly 14 per cent,
in 1973. Sharp increases in earnings stemmed
both from larger holdings of assets and from
higher returns on these assets. But there were
also sharp increases in the average cost of funds
to banks. Both operating income and operating
expenses rose at rates much faster than in any
prior year. Although the banks sustained net
losses on security transactions, these losses were
small, and the banks’ net income for the year
totaled $5.0 billion.
SUMMARY
The fast rate of growth in operating income of
member banks in 1973 reflected a strong in­
crease in loan revenues, and to a much lesser
extent, an increase in revenues from investment
securities. Short-term interest rates rose sub­
stantially during the year, and average yields
on bank portfolios rose for all categories of
loans and investments. Although holdings of
investments increased somewhat less rapidly
than in 1972, growth in loan portfolios in 1973
was considerably more than for the previous
year because of the strong credit demands of
the economy. Deposit inflows, however, were
large enough to permit banks to meet these
expanding credit demands and also to add
somewhat to their holdings of investments.
Interest paid on time and savings deposits,
the largest single expense item for banks, rose
at a much faster rate than in 1972 and accounted
for slightly more than half of the over-all in­
crease in operating expenses. A sharp increase
in interest on Federal funds purchased and on
securities sold under repurchase agreements
contributed substantially more to the rise in
operating expenses than did salaries and wages.
Interest on other borrowed money, which had
N o t e . — This article was prepared by Anthony W.
Cyrnak of the Board’s Division of Research and Statis­
tics.

 422


declined in each of the preceding 3 years, rose
rapidly in 1973, but interest expense on capital
notes and debentures rose only moderately fur­
ther. Net loan losses charged to reserves in­
creased faster than average loans outstanding;
hence the ratio of net loan losses charged to
reserves to average loans outstanding increased
slightly.
Accompanying a substantial rise in income
before income taxes and securities gains or
losses was an appreciable increase in applicable
income taxes. Nevertheless, net income of
member banks rose to a record $5,012 million;
this represented a 13.9 per cent increase, or
twice that recorded in 1972. With member
banks’ net income rising somewhat faster than
equity capital plus reserves, the ratio of net
income to equity capital plus reserves increased.
Cash dividends declared also rose, but the rate
of increase was less than for net income. As
a result, the ratio of cash dividends to net
income declined in 1973.
As in 1972, large banks in New York City,
which have extensive foreign operations, re­
corded the most rapid rate of growth in net
income, although the increase was only slightly
above that for banks in the City of Chicago.
All other banks also recorded strong increases
in net income, and the performance differential
between these banks and those in the large
money centers was less than in 1972.
OPERATING INCOME
Total operating income of member banks in
1973 increased 33 per cent over 1972 levels to
$41.7 billion (Table 1). Nine-tenths of this
increase resulted from expanded revenues on
loans. Income from investments added only
slightly to operating revenues and for the second
consecutive year accounted for a reduced
proportion of total operating income.
Interest and fees on loans (including Federal
funds sold and securities purchased under resale

TABLE 1
CONSOLIDATED REPORT OF INCOME FOR 1 9 6 9 -7 3 FOR ALL MEMBER BANKS
Amounts shown in millions of dollars
Change
1972-73

Amount
Item

O perating incom e— 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 ..................................................................................................

1969

1970

1971

1972

1973

Amount

Per­
centage

24,991

27,913

28,670

31,335

41,708

10,373

33.1

17,104

18,706

18,317

19,997

28,261

8,264

41.3

649

781

677

794

1,847

1,053

132.6

4,263
2,041
322
1,794
106
972
835
557

4,832
2,208
415
2,090
118
1,075
868
681

5,662
2,434
578
2,468
182
1,182
896
795

6,086
2,412
730
2,709
234
1,269
904
864

6,531
2,392
943
2,927
268
1,344
940
998

445
-2 0
213
218
34
75
37
134

7.3
- .8
29.2
8.0
14.5
5.9
4.1
15.5

137
473

346
625

340
802

254
1,168

338
1,449

84
281

33.1
24.1

Operating expenses— Total ................................................................

19,525

22,193

23,346

25,639

35,027

9,388

36.6

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

4,690
749

5,282
876

5,666
973

6,020
1,073

6,571
1,234

551
161

9.2
15.0

17,059

8,139

9,426

10,513

15,377

4,864

46.3

1,177
562
89
867
615
381
3,336

1,365
444
90
1,013
722
534
3,728

1,073
127
123
1,130
797
681
3,348

1,387
102
184
1,259
848
767
3,486

3,765
474
204
1,408
924
994
4,078

2,378
372
20
149
76
227
592

171.4
364.7
10.9
11.8
9.0
29.6
17.0

5,467
1,813
3,653
-2 0 9
5
(2)
3,450
1,523

5,720
1,775
3,945
-1 0 7
- 15
(2)
3,823
1,754

5,325
1,349
3,976
144
3
(2)
4,117
1,908

5,696
1,356
4,340
46
14
(2)
4,400
1,839

6,681
1,654
5,027
- 30
15
(2)
5,012
2,018

985
298
687
- 76
1
(2)
612
179

17.3
22.0
15.8

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 ..........................
L ess minority interest in consolidated subsidiaries .......................
Net income ................................................................................................
Cash dividends declared3 .....................................................................

13.9
9.7

2Less than $500,000.
3On common and preferred stock.

*This item excludes— and “ interest on other borrowed
money” and “ other operating expenses” include— $101 mil­
lion of interest on Euro-dollar borrowing incorrectly reported
as interest on time and savings deposits.

N o t e .— Figures may not add to totals because of rounding.

agreements) increased by 45 per cent in 1973
to $30.1 billion; this compares with an increase
of 9.5 per cent in 1972. The recent increase
reflected strong growth in all major loan cate­
gories except securities loans and an average
rate of return on loans that was the highest in
the past 40 years.
Member banks increased their average hold­
ings of loans by nearly $60 billion, or 19.9 per
cent, during 1973 (Table 2). Commercial and
industrial loans accounted for 31 per cent of the
increase as compared with only 18 per cent in

1972. In early 1973 many large businesses
found that they could finance their expanding
activities by borrowing at banks at a prime rate
that was more attractive than the rates available
on other short-term market funds. In April,
however, the Committee on Interest and Divi­
dends established a dual prime rate. This effec­
tively enabled the prime rate on loans to large
business borrowers to increase more in line with
the cost of other short-term funds while provid­
ing some protection against rate increases to
small businesses. As a result the strong demand




423

FEDERAL RESERVE BULLETIN □ JUNE 1974

424

for bank credit was dampened somewhat over
the remainder of the year.
Growth in real estate loans outstanding at
member banks was faster in 1973 than in 1972
despite a softening in housing demand during
the last three quarters of the year. Even so, the
1973 increase in such loans accounted for a
slightly smaller percentage of the growth in total
TABLE 2
CHANG ES IN MEMBER BANKS AVERAGE LOANS,
INVESTMENTS, D EPO SITS, AND
CAPITAL OUTSTANDING

Change

Item
1972

1973

Total loans and Invest­
m ents, gross2 __ 431,505 495,184
Federal funds sold and
securities purchased
under resale agree­
ment ......................... 16,964 21,931
Other loans ..................... 284,128 338,935
Commercial and in­
dustrial ..................... 106,003 124,565
7,910
9,396
Agricultural ................
Real estate .................. 66,913 79,992
For purchasing and
carrying securities .. 12,177 12,368
To financial institu­
tions ......................... 23,090 33,490
Other loans to indi­
viduals ..................... 59,978 68,867
All other .....................
8,058 10,255
U .S. Treasury securities3 44,543
U .S. Govt, agency and
corporation securi­
12,000
ties3 ....................
States and political sub­
division securities3 65,837
3,503
Other securities3 ............
Trading account securi­
4,529
ties ............................

Per­
Amount centage

63,679

14.8

4,967
54,807

29.3
19.3

18,562
1,486
13,079

17.5
18.8
19.5

191

1.6

10,400

45.0

8,889
2,197

14.8
27.3

41,226 - 3 ,3 1 7

-

7.4

15,212

3,212

26.8

67,900
3,892

2,063
389

3.1
11.1

6,089

1,560

34.4

Total deposits .................. 447,454 498,946
Time deposits .................. 227,592 264,168
Savings ......................... 90,163 93,910
Other time I.P .C .......... 102,814 127,116
All other time ............ 34,615 43,142

51,492
36,576
3,747
24,302
8,527

11.5
16.1
4.2
23.6
24.6

39,668
43,023

3,446
3,701

9.5
9.4

Equity capital4 ................ 36,222
Total capital accounts5 39,322
Reserves on loans and
5,518
securities ..................
Total equity capital and
reserves .................... 41,739

6,004

486

8.8

45,672

3,933

9.4

‘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.
2Includes securities held in trading account.
3Excludes securities held in trading account.
4Includes common stock, preferred stock, surplus, undivided
profits, and reserves for contingency and other capital reserves.
5Includes equity capital plus capital notes and debentures.




SELECTED MEMBER BANK INCOME RATIOS
In per cent
Ratios

1969

1970

1971

1972

1973

Ratios to equity capital
(including reserves)—
Income before securi­
ties gains or losses 10.70 10.75 10.22 10.38 11.00
Net income .................. 10.10 10.44 10.60 10.54 10.97
Cash dividends
declared1 ................
4.46 4.79 4.91
4.40 4.41
Rates of return on—
Loans, gross ..............
U .S . Treasury
securities2 ..............
U .S . Govt, agencies
and corporations2 ..
State and local govt.
obligations2 ............
Other securities2

Amounts shown in millions of dollars
Average
amount1

TABLE 3

Interest on time deposits
to total time deposits

7.57

7.91

7.18

6.90

8.34

4.95

5.62

5.61

5.41

5.80

5.81

6.55

6.20

6.08

6.20

3.87
5.59

4.23
6.30

4.17
7.10

4.11
6.67

4.31
6.89

4.47

4.98

4.77

4.61

5.82

‘ On common and preferred stock.
2Excludes securities held in trading account.
N o t e . — These ratios were computed from aggregate dollar
amounts of income and expense items. The capital, deposits,
loans, and securities 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.

loans of banks than in the previous year, pri­
marily because of the relatively stronger growth
in holdings of other types of loans. Although
demand for consumer durable goods weakened
late in the year, consumer loans at member
banks increased by 14.8 per cent, about the
same rate as in 1972.
Because of the strong demand for loans dur­
ing 1973, member banks had fewer funds to
invest in securities, and their investment portfo­
lios rose at only one-third the rate of 1972.
Furthermore, banks changed the composition of
their portfolios during the year— reducing hold­
ings of short-term investments, particularly
U.S. Treasury securities, and increasing hold­
ings of longer-term securities at a rapid rate.
Despite the slower rate of growth in total hold­
ings, a rise in the average rate of return on all
securities made it possible for banks to record
an increase of 7.3 per cent in investment in­
come, about the same increase as in 1972.
Income from all major types of securities
except U.S. Government securities rose during
the year. The increases stemmed from increases
in both average holdings and average rates of

MEMBER BANK INCOME IN 1973

return. The increase of 39 basis points in the
average rate of return on U.S. Government
securities about offset the decline in earnings
associated with the drop in holdings of these
securities, and total income from this source fell
by only $20 million or less than 1 per cent.
Income from other sources— including trust
departments, service charges on deposit ac­
counts, and other charges and fees— increased
in the aggregate by $246 million, or 8.1 per
cent— somewhat more than in 1972. Among
these three types, the sharpest increase— 15.5
per cent, or almost twice as much as in 1972—
was in income from “ Other charges and fees,”
which includes such items as earnings from
equipment leasing and data processing services.
“ Other operating income,” which includes
income from trading account, foreign branches,
Edge Act subsidiaries, and other sources, in­
creased by 26 per cent, about the same as in
1972. Income from trading account, after de­
clining sharply in 1972, recorded a substantial
rise in 1973. Earnings from foreign branches,
which had doubled in 1972, again increased
rapidly in 1973, reflecting the results of ex­
panded overseas operations by member banks.
OPERATING EXPENSES
Total operating expenses of member banks in­
creased by 37 per cent in 1973. Although each
expense item recorded an increase, the growth
in interest expenses accounted for more than
four-fifths of the $9.4 billion over-all rise.
Interest on time and savings deposits in­
creased $4.9 billion, or 46 per cent. This was
four times the rate for 1972. Time and savings
deposits grew at a rate only slightly faster than
in 1972, but average interest paid on these
deposits increased by 121 basis points to a
record 5.82 per cent as compared with a decline
of 16 basis points the previous year.
In part because of reduced inflows of regular
savings and consumer-type time deposits, such
deposits accounted for a smaller proportion of
the over-all rise in interest expenses in 1973 than
in either 1971 or 1972. With depositors attracted
to other short-term market instruments bearing
higher interest rates than regular savings ac­
counts, savings deposits rose only 4.2 per



425

cent— which was less than half the previous
year’s rate. However, average interest paid on
these deposits increased over 1972 levels— in
large part because of increases in offering rates
after the midyear revision in the Federal Re­
serve’s Regulation Q ceiling rate on such de­
posits, a move designed to permit regular sav­
ings accounts to become more competitive with
other market instruments.
In another move designed to bolster the com­
petitive position of all depositary institutions,
Federal authorities, in mid-1973, permitted
member banks and other financial institutions
to issue a new consumer-type time deposit; such
instruments were not subject to an interest rate
ceiling if they were issued in denominations of
$1,000 or more and for more than 4 years.
Amounts of these ceiling-free deposits out­
standing grew rapidly until a rate ceiling was
imposed effective November 1. The fast growth
in these deposits during a third of the year, and
the relatively high interest rates paid on them,
contributed substantially to the increase in
over-all interest expenses of banks during the
year.
Other types of time deposits increased more
rapidly in 1973 than in 1972. In an attempt to
meet burgeoning credit demands, banks issued
a large volume of negotiable CD’s, a rate-sen­
sitive money market instrument issued in de­
nominations of $100,000 and over. Offering
rates on these deposits rose by around 5 per­
centage points during the first three quarters of
the year, then declined slightly in the final
quarter. On average, both interest rates paid and
holdings of these deposits were considerably
higher in 1973 than in 1972, and the combina­
tion added significantly to interest expenses of
member banks.
Interest paid on Federal funds purchased and
on securities sold under repurchase agreements
increased substantially in 1973. Contributing in
part to the rapid rise was a midyear increase
in reserve requirements on both newly issued
CD’s and demand deposits; banks sought funds
to meet these requirements, in part, in the Fed­
eral funds market. The average rate paid on
these borrowings over the year was 8.74 per
cent, roughly double the 4.44 per cent cost in
1972. Higher interest costs on “ Other borrowed

426
money” were associated with expanded bor­
rowings from Federal Reserve Banks and with
increases in Euro-dollar borrowings; the latter
became a somewhat more attractive source of
funds to banks after reserve requirements on
these funds were lowered from 20 to 8 per cent
in mid-1973. Although the outstanding volume
of capital notes and debentures changed little
during 1973, interest paid on this debt rose 11
per cent, reflecting carryover from the large
increase in 1972, when this expense item rose
50 per cent.
Salary and wage expenses (including bene­
fits) at member banks increased 10 per cent in
1973, somewhat more rapidly than in 1972.
Both a faster rise in the number of employees
and a higher average compensation contributed
to this cost difference.
With the rapid over-all increase in loan activ­
ity during 1973, together with the relatively
large volume of charge-offs in recent years,
banks increased their “ Provision for loan
losses” by $227 million, or 30 per cent; this
was significantly above the actual increase of
20 per cent in average loans outstanding. Nearly
all banks operate on a reserve-accounting
method, and for most of these banks, the provi­
sion for loan losses is an estimate of losses that
the bank may reasonably expect to incur on the
current loan portfolio over a period (determined
by methods prescribed by supervisory authori­
ties).1 For accounting purposes, this item is a
current operating expense, and it therefore af­
fects net income in the current year.
Net loan losses charged to reserves reported
by member banks in 1973 totaled a record $940
million, an increase of 31 per cent for the year.
Such losses were considerably greater than in
either 1972 or 1971. Because of the rapid rise
in loans outstanding, however, the ratio of net
loan losses charged to reserves to average loans
outstanding increased moderately from 0.23 per
cent in 1972 to 0.25 per cent in 1973; never­
theless, it was well below the ratios posted in
1971 and 1970.
1A11 member banks that do not provide for loan losses
on a reserve basis must use their actual net loan losses
each year as a minimum “ provision for loan lo s s e s .”
Other banks may use this method if they do so on a
regular basis.




FEDERAL RESERVE BULLETIN □ JUNE 1974
Most of the remaining categories of operating
expenses were up about as much in 1973 as
in 1972. The most significant increase— 17 per
cent as compared with 4 per cent in 1972— was
in other operating expenses. One reason for this
sharp increase is that some banks report Euro­
dollar interest expenses in this figure.

O T H E R

T R A N S A C T IO N S

Member banks recorded net security losses in
1973, as contrasted with net security gains in
1971 and 1972. In the two earlier years market
prices of securities had advanced from levels
that had prevailed over much of 1969 and 1970,
but in 1973 there were declines in security
prices j and the banks sustained net security
losses of $30 million. On the other hand, for
the second consecutive year extraordinary
charges or credits after taxes added to member
banks’ net income.
IN C O M E

T A X E S

Member banks increased their provision for
income taxes only slightly in 1973. For the year
this item totaled $1,296 million, or 3 per cent
greater than in 1972. Although income before
income taxes and securities gains or losses in­
creased 17 per cent in 1973, applicable income
taxes rose 22 per cent. In 1972 when income
before income taxes and security transactions
had risen by 7 per cent, applicable income taxes
had shown little change. In that year, however,
tax-exempt income had accounted for a much
larger share of the growth in income before
income taxes and securities gains or losses than
in 1973.

N ET

IN C O M E

A N D

C A SH

D IV ID E N D S

As previously noted, net income of member
banks increased by $612 million, or 14 per cent,
in 1973. With equity capital plus reserves in­
creasing only two-thirds as fast as net income,
the ratio of net income to equity capital plus
reserves rose to 10.97 per cent, 43 basis points
higher than in 1972.
Cash dividends declared also rose in 1973,
following a slight decline in 1972. For the year,

427

MEMBER BANK INCOME IN 1973

TABLE 4
CONSOLIDATED REPORT OF INCOME FOR 1973 AND 1972 FOR MEMBER BANKS G RO UPED BY CLA SS
In millions of dollars
Large banks
All member
banks
Item

O perating incom e— Total ................
Loans:
Interest and fees ...........................
Federal funds sold and securi­
ties purchased under resale
agreement ............................
Securities:
Excluding trading-account
income—
U .S. Treasury securities .......
U .S. Govt, agencies and
corporations .........................
States and political subdivi­
sions .......................................
Other securities .......................
Trust department ..............................
Service charges on deposit
accounts ................................
Other charges, fees, etc...................
Other operating income:
On trading account (net) ...........
Other ..............................................
Operating expenses— Total ............
Salaries and wages of officers and
employees ............................
Officer and employee benefits __
Interest on—
Time and savings deposits .......
Federal funds purchased and
securities sold under repur­
chase agreements ................
Other borrowed money ..............
Capital notes and debentures ...
Net occupancy expense ..................
Furniture, equipment, etc.................
Provision for loan losses ..............
Other operating expenses ..............

1972

1973

1972

31,335

7,483

4,992

2,147

28,261

19,997

5,301

3,180

1,847

794

147

2,392

2,412

249

1972

41,708

Other

1973

1972

1973

1972

1,285

15,829

11,679

16,249

13,378

1,525

804

10,930

7,609

10,505

8,403

48

113

45

840

390

747

310

260

79

77

730

757

1,334 j

1,318

943

730

68

31

20

10

216

160

639

529

2,927
268
1,344

2,709
234
1,269

325
39
381

341
34
374

128
11
105

122
9
97

997
82
541

915
73
507

1,478
136
318

1,332
117
291

940
998

904
864

79
134

74
107

9
33

7
28

347
473

335
411

504
358

488
317

338
1,449

254
1,168

143
615

103
439

11
113

22
63

165
509

112
409

19
212

16
257

35,027

25,639

6,159

3,915

1,826

1,021

13,548

9,679

13,494

11,023

6,571
1,234

6,020
1,073

1,051
242

989
217

230
51

207
41

2,504
459

2,295
396

2,786
482

2,530
419

15,377

10,513

2,434

1,262

858

418

5,670

3,794

6,415

5,039

3,765
474
204
1,408
924
994
4,078

1,387
102
184
1,259
848
767
3,486

974
157
46
280
116
237
622

361
21
50
251
109
158
497

403
19
4
56
30
44
131

129
12
4
50
26
36
100

1,889
229
95
506
340
390
1,466

732
51
90
451
317
294
1,260

498
68
59
566
438
323
1,859

165
18
41
508
396
279
1,629

6,681
1,654

5,696
1,356

1,324
393

1,077
296

321
84

264
58

2,281
593

2,000
513

2,754
584

2,355
488

5,027

4,340

931

781

237

205

1,689

1,487

2,170

1,867

-3 0

46

—14

-2

-4

-4

1

-5

—13

58

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 ...........................................
L ess minority interest in consolidated
subsidiaries .........................................
Net income ............................................
Cash dividends declared .....................

15

14

u>
5,012
2,018

(i)
4,400
1,839

919
353

788
310

Ratios (per cent):
To equity capital (incl. reserves)—
Income (after taxes) before secu­
rities gains or losses .........
Net income ...................................

11.00
10.97

10.38
10.54

10.53
10.39

9.72
9.81

2

^ e s s than $500,000.
N o t e . — Figures may not add to totals because of rounding.




City of Chicago

1973

1973

otner
banks

aii

New York City

9

ci)

1

12

2

233
101

201
122

u>
1,690
828

(i) j
(i)
1,484
2,169
719
737

(i)
1,927
688

10.50
10.34

9.89
9.68

10.68
10.69

10.24
10.23

10.86
11.24

1

2

11.56
11.55

FEDERAL RESERVE BULLETIN □ JUNE 1974

428
member banks declared cash dividends of $2.0
billion; this was $179 million, or 9.7 per cent,
greater than in 1972. Cash dividends, however,
did not keep pace with the over-all rise in net
income, reflecting in part the impact of the CID
dividend restraint program, and the ratio of
dividends to net income again declined, to 40
per cent in 1973 as compared with 42 per cent
in 1972. Relative to equity capital plus reserves,
dividends increased negligibly to 4.41 per cent.
N ET

IN C O M E

BY

S IZ E

O F

B A N K

Although differences in profits among large
money center banks and all other banks were
recorded in 1973, these differences were some­
what smaller than in other years as all size




classes of banks reported substantial increases.
As in 1972, net income rose fastest for large
banks in New York and Chicago; these banks
posted 16.6 and 15.9 per cent increases, re­
spectively (Table 4). In part, the stronger per­
formance of these banks reflects growth in in­
come realized on their extensive and rapidly
expanding foreign operations.
“ Other large” banks increased their 1973 net
income by 13.9 per cent as compared with 3.8
per cent in 1972. “ All other” banks— mainly
smaller banks— posted an increase of 12.6 per
cent, also considerably higher than the 7.4 per
cent in 1972. Sales of Federal funds at sharply
higher interest rates contributed significantly to
the income growth at these banks.
□

Treasury and Federal Reserve
Foreign Exchange Operations
I n t e r im R e p o r t

This interim report , covering the p erio d Febru­
ary through A p ril 1974, is the third of a series
providing information on Treasury and System
foreign exchange operations to supplement the
regular series o f semiannual reports that are
usually issued each M arch and September. It
was prep a red by Charles A . Coom bs , Special
M anager o f the System Open M arket Account,
and Senior Vice President in charge of the
Foreign D epartm ent of the Federal R eserve
Bank of N ew York.

Early in January, the dollar continued its strong
advance in the exchange markets, spiraling up­
ward against some currencies to levels prevail­
ing before the February 1973 devaluation. The
market’s bullish appraisal of the dollar mainly
derived from the favorable trends in the U.S.
payments balance that had emerged during 1973
and the judgment that this country could better
cope with the damaging consequences of the oil
crisis than most other industrial countries. Later
that month, however, exchange market senti­
ment abruptly shifted against the dollar and a
steady slide in dollar rates developed over the
following 3 months covered by this report. By
the end of April, the dollar had fallen from its
January peak by as much as 17 per cent against
the German mark and some other European
currencies, while also depreciating considerably
against both the Japanese yen and the Canadian
dollar. As a result, more than three-fourths of
the dollar’s improvement since October 1973
was eroded.
This adverse shift of market sentiment coin­
cided with the complete elimination of U.S.
capital controls on January 29 and the subse­
quent easing of European barriers against short­
term capital inflows. Moreover, U.S. interest
rates had already begun to fall off sharply while
rates abroad held firm, and this swing in interest
rate differentials temporarily provided a further



strong inducement to outflows of U.S. funds
into foreign markets. Foreign demand for dollar
credit mounted as European countries rushed to
launch medium-term borrowing programs to
meet anticipated balance of payments deficits.
In response to these pressures, claims on for­
eigners reported by U.S. banks, the bulk of
which is short term, ballooned by a record
increase of well over $6 billion during the 3
months, February through April. Even more
disturbing, the energy crisis threatened to pro­
voke a more rapid and pronounced deterioration
in our trade balance than originally expected,
while Germany showed a continuing trade sur­
plus of surprising strength.
As this picture unfolded, the dollar came on
offer, and dollar rates against most European
currencies declined steadily during February to
levels nearly 10 per cent below the January
highs. Such recurrent declines in dollar rates
threatened to generate speculative pressures and
disorderly trading, and the Federal Reserve ac­
cordingly resumed intervention in the market on
February 22. By the month-end, the Federal
Reserve had sold $91.2 million equivalent of
marks, financed by drawings on the swap line
with the German Federal Bank, of which $3.7
million was repaid with market purchases early
in March. In addition, the Federal Reserve also
sold $6.8 million equivalent of Belgian francs
from System balances, as well as some $8.9
million equivalent of German marks and $15.8
million equivalent of French francs from Treas­
ury balances.
Meanwhile, the divergent trend between the
U.S. weakening trade position and the contin­
ued strength of Germany’s export surplus had
kindled renewed debate over German ex­
change-rate policy. During March, speculation
over a possible revaluation of the mark became
the dominant factor in the market. The mark,
now at the top of the EC snake, pulled other
429

430
European currencies up against the dollar as it
posted new gains almost daily. The Federal
Reserve intervened intermittently, but in sizable
amounts, to sell a further $225.5 million equiv­
alent of German marks by the end of March,
financed by additional drawings on the swap line
with the German Federal Bank. These opera­
tions were conducted in close coordination with
the Federal Bank, which also supplied marks
on a substantial scale both by buying dollars
outright and by intervening in the EC snake
arrangement. In other operations during March,
the Federal Reserve sold $10 million equivalent
of Belgian francs from System balances and
$17.9 million equivalent of French francs from
Treasury balances.
By April, interest rates in the United States
had turned around and then began to move
upward sharply while rates abroad were on an
easing trend, thereby progressively reversing
earlier interest-arbitrage differentials adverse to
the United States. Moreover, trade figures for
March showed a more modest U.S. deficit than
generally expected in the market and a slightly
reduced surplus for Germany. Nevertheless, the
market remained fearful of a possible revalua­
tion of the German mark or a disbanding of the
EC snake. In addition, publication of firstquarter figures, showing a drop in U.S. output
and a distressing acceleration of domestic infla­
tion, prompted gloomy market reassessments of
U.S. business and foreign trade prospects. De­
velopments in the Watergate affair also exerted
a depressing influence on the international value
of the dollar from time to time. As the dollar
fell still further, the Federal Reserve continued
to intervene and sold $51.6 million equivalent
of marks in April, financed by further drawings
under the swap line with the Federal Bank.




FEDERAL RESERVE BULLETIN □ JUNE 1974
Over the 3-month period, February-April,
Federal Reserve and Treasury intervention
amounted to $427.5 million. Of this total,
$368.2 million was financed by Federal Reserve
drawings on the swap line with the Federal
Bank. As of the end of April 1974, $364.5
million of these drawings remained outstanding.
During the period under review, market condi­
tions ruled out any repayments of outstanding
System swap debt in Swiss francs and Belgian
francs, which amounted to $971.2 million and
$261.8 million, respectively.
Apart from the $1 billion increase in the
Federal Reserve swap line with the Bank of Italy
on February 1, already reported, the only other
change in the swap network during the period
was an increase in the Federal Reserve’s swap
line with the Bank of England from $2 billion
to $3 billion, effective March 26. As of April
30, swap lines between the System and other
central banks totaled nearly $20 billion.
□
FEDERAL RESERVE SYSTEM DRAWINGS AND
REPAYMENTS UNDER RECIPROCAL CURRENCY
ARRANGEMENTS
In millions of dollars equivalent

Transactions with—

National Bank of Belgium ...

System Drawings, System
or repay­
swap
swap
commit­ ments ( —) commit­
ments,
Feb. 1
ments,
through Apr. 30,
Jan. 31,
Apr. 30
1974
1974
261.8

261.8
J 368.21
13.7J

German Federal Bank .........

364.5

Swiss National Bank ...........
Bank for International Settle­
ments (Swiss francs) .......

371.2

371.2

600.0

600.0

Total .........................................

1,232.9

.{-* 3 3 }

1,597.4

N o t e .— D iscrepancies in totals are due to rounding.

Record of Policy Actions
o f t h e F e d e r a l O p e n M a r k e t C o m m it t e e

M E E T IN G

1.

H ELD

D o m e s tic

O N

M A R C H

p o lic y

1 8 - 1 9 ,1 9 7 4 1

d ire c tiv e

The information reviewed at this meeting continued to suggest that
real output of goods and services, which had grown at an annual
rate of about 1.5 per cent in the fourth quarter of 1973, was
declining in the first quarter of this year— in large part because
of the oil situation— and that the GNP implicit deflator was still
rising at a rapid rate. Staff projections, like those of 4 weeks earlier,
suggested that real output would change little in the second quarter
and that the rise in prices would remain rapid.
In February industrial production receded for the third consecu­
tive month, as output of automobiles and auto parts and of non­
durable consumer goods declined while output of business equip­
ment changed little. Employment in durable goods manufacturing
also continued to decline, but total nonfarm employment rose
appreciably, returning to the peak reached in November 1973. The
rate of unemployment— which had risen from a recent low of 4.6
per cent in October to 5.2 per cent in January— was unchanged
in February. Retail sales fell, reflecting decreases in sales at
automobile dealerships and gasoline service stations; total retail
sales for the month were slightly below the monthly average for
the fourth quarter of 1973.
Wholesale prices of farm and food products and of industrial
commodities rose sharply in February, although at a lesser rate
than in the preceding 2 months. Price increases continued to be
widespread among industrial commodities and were especially large
for fuels, metals, and nonmetallic minerals. In January the con­
sumer price index had risen substantially further, with much of
xThis m eeting was held over a 2-day period, beginning on the afternoon of
March 18, in order to permit the Committee to review its continuing authorizations
and directives without infringing on the time available for its deliberations on
current monetary policy.




431

432




FEDERAL RESERVE BULLETIN □ JUNE 1974

the rise being caused by steep increases in retail prices of foods
and fuels. In the first 2 months of the year, advances in the index
of average hourly earnings of production workers on nonfarm
payrolls moderated from the rapid pace in the second half of 1973.
Staff projections suggested that termination of the Arab embargo
on oil shipments to the United States— reported on March 18—
would have no more than a marginally expansive impact on over-all
real output until the summer, although it might strengthen the
automobile and housing markets promptly. Expectations for the
second quarter were that expansion in business fixed investment
would remain relatively strong; that growth in government pur­
chases of goods and services would continue at a substantial rate;
and that the rise in personal consumption expenditures would pick
up somewhat as demands for domestic-type automobiles— which
had fallen sharply in the autumn and winter months— strengthened.
It was also anticipated, however, that residential construction
outlays— which lag behind starts for new housing units— would
decline appreciably further and that investment in business inven­
tories would not be so large as in the two preceding quarters.
In foreign exchange markets the dollar depreciated against lead­
ing foreign currencies during the first 3 weeks of February and
then changed little through mid-March, at an average level still
well above that of October 1973. Moreover, the U .S . balance of
payments on the official settlements basis appeared to have shifted
from a substantial surplus in January to a deficit in February. In
January the U .S . merchandise trade surplus— although down
somewhat from December— remained large, with exports expand­
ing almost as much as imports; a significant part of the rise in
the value of imports was attributable to a sharp increase in the
cost of imported petroleum products.
Growth in total loans and investments at U .S. commercial banks
remained rapid in February; while expansion in most major types
of loans slowed appreciably, banks’ holdings of Treasury securities
and loans to securities dealers rose sharply. Although businesses
continued to increase their short-term borrowing at a rapid pace,
they raised a large share of these funds in the commercial paper
market where rates were favorable relative to effective rates on
bank loans. In late February most banks reduced the prime rate
applicable to large corporations from 9 to 8% per cent.

RECORD OF POLICY ACTIONS OF FOMC

The narrowly defined money stock (M x),2 after having declined
in January, expanded substantially in February in association with
an unusually large decline in U .S. Government deposits. Rapid
expansion in M x continued in early March. Net inflows of time
and savings deposits other than large-denomination C D ’s remained
relatively strong in February, and growth in the more broadly
defined money stock (M2)3 accelerated to a high rate. However,
the bank credit proxy4 rose little; the large increases in private
demand deposits and in consumer-type time and savings deposits
were almost offset by the extraordinary decline in U .S . Government
deposits and a slowing down— as compared with January— of
growth in the outstanding volume of large-denomination C D ’s.
Net deposit inflows at nonbank thrift institutions in February,
as in January, remained near the improved rate of the final months
of 1973. Growth in the measure of the money stock that includes
such deposits (M3)5— like growth in M2— accelerated to a high rate.
Contract interest rates on conventional mortgages declined further
between early February and early March.
System open market operations since the February 20 meeting
had been guided by the Committee’s decision to seek bank reserve
and money market conditions consistent with moderate growth in
the monetary aggregates over the months ahead, while taking
account of international and domestic financial market develop­
ments. Toward the end of February, incoming data suggested that
in the February-March period growth in
would exceed the range
of tolerance specified by the Committee and that growth in M2
and in reserves available to support private demand deposits
(RPD’s) would about equal the upper limits of their specified
ranges. Such behavior ordinarily would have led to more restrictive
reserve-supplying operations and a rise in the Federal funds rate
toward the upper limit of its range of tolerance— namely, 9 V2 per
cent. On March 1, however, a majority of the available Committee
2Private demand deposits plus currency in circulation.
3M X plus com mercial bank tim e and savings deposits other than large-denom ­
ination C D ’s.
4Daily-average member bank deposits, adjusted to include funds from non­
deposit sources.
5M 2 plus time and savings deposits at mutual savings banks and at savings
and loan associations.




433

434




FEDERAL RESERVE BULLETIN □ JUNE 1974

members concurred in the Chairman’s recommendation that, in
light of the marked rise in short-term interest rates that had occurred
since the February meeting and of the highly sensitive state of
the financial markets, reserve-supplying operations for the time
being should be conducted in a manner expected to be consistent
with maintenance of the Federal funds rate at about the 9 per cent
level that had prevailed over the preceding 3 weeks.
Ten days later, in response to evidence that strong growth in
the monetary aggregates was persisting, a majority of the available
members concurred in the Chairman’s recommendation that reserve-supplying operations should be conducted in a manner con­
sistent with the range of tolerance for the Federal funds rate that
had been agreed upon at the February meeting— although, in light
of recent increases in market interest rates and the sensitive state
of financial markets, the Account Manager was instructed to pro­
ceed very cautiously in operations thought likely to be consistent
with a rise in the weekly average Federal funds rate above 9 per
cent. In mid-March, just before this meeting, the Federal funds
rate was in a range of 9% to 9 Vi per cent; member bank borrowings
averaged around $1,130 million in the 4 weeks ending March 13,
almost the same as in the preceding 4 weeks.
Short-term market interest rates, which had fallen irregularly for
more than 2 months, rose appreciably in the period between the
Committee’s meeting on February 20 and this meeting— in large
part because the Federal funds rate did not decline further as market
participants had expected and because short-term credit demands
remained strong. Rates advanced more for Treasury bills than for
other short-term instruments, under the influence of the following:
an increase in dealers’ costs of financing inventories, System sales
of bills to offset the reserve-supplying effects of the large reduction
in U .S. Government deposits at Federal Reserve Banks, and
Treasury issuance of a tax-anticipation bill for new cash. At the
time of this meeting the market rate on 3-month Treasury bills
was 7.95 per cent, up from 7.03 per cent on the day before the
February meeting.
Yields on long-term securities, like those on short-term issues,
rose appreciably in the inter-meeting period, as capital market
financing remained heavy and as dealers— who had been holding
substantial inventories in anticipation of continuing declines in

RECORD OF POLICY ACTIONS OF FOMC

yields— reduced their inventories when yields turned up. The over­
all volume of new public offerings of corporate and State and local
government bonds— although down moderately— was still rela­
tively large in February, and a substantial increase in the volume
was in prospect for March.
The Treasury planned to announce shortly a cash offering of
securities amounting to $4 billion. The offering was expected to
include short-term notes as well as tax-anticipation bills.
The Committee concluded that the economic situation and out­
look continued to call for moderate growth in monetary aggregates
over the longer run; therefore, in view of the rapid monetary
expansion recently, it would seek to moderate growth in monetary
aggregates over the months ahead. According to a staff analysis,
pursuit of that objective would be likely to entail a further tightening
of bank reserve and money market conditions in the near term
and some further increases in interest rates in general. Upward
pressures on interest rates might well be intensified in the weeks
ahead as the market absorbed the large Treasury financing in
prospect. The analysis also noted, however, that estimates of the
likely strength of money demands over the spring and summer
and of the relationships between monetary growth rates and market
interest rates were subject to larger margins of error than usual
because of the greater uncertainty attached to projections of nominal
GNP and because of the difficulties of assessing how borrowers,
lenders, and savers would react to the recent and prospective rates
of inflation.
The staff analysis suggested that, even with the contemplated
firming of bank reserve and money market conditions, expansion
in M i would be relatively large over the March-April period, partly
as a consequence of the sizable increase that had taken place in
early March. Although net inflows of consumer-type time and
savings deposits to banks and rionbank thrift institutions were
expected to recede in response to the increases in market rates
of interest, growth in M2 also was expected to be relatively high.
Thus, ranges of tolerance for the March-April period of 6 V2 to
8 V2 per cent and 7% to 9% per cent for M i and M2, respectively,
might be consistent with achievement of the Committee’s longerrun objectives for the monetary aggregates.
Taking account of the staff analysis, the Committee concluded




435

436




FEDERAL RESERVE BULLETIN □ JUNE 1974

that progress toward its objective of moderating monetary growth
could be achieved even with rates of expansion in the aggregates
over the March-April period that were temporarily above those
desired for the longer term. Accordingly, the members found the
upper limits of the 2-month ranges of tolerance noted above to
be acceptable. In view of the recent high rate of monetary growth,
however, they agreed that the lower limits of those ranges should
be reduced somewhat, so as to permit more rapid progress toward
moderate monetary growth, should the growth rates in the aggre­
gates in the period immediately ahead appear to be falling short
of present expectations. Specifically, for the March-April period
the Committee adopted ranges of tolerance of 5 lA to 8 V2 per cent
and of 6% to 9 3A per cent for the annual rates of growth in M x
and M2, respectively. The members agreed that rates of growth
within those ranges would be likely to involve RPD growth during
the same period at an annual rate within a 4 to 7 per cent range
of tolerance, and they decided that in the period until the next
meeting the weekly average Federal funds rate might be permitted
to vary in an orderly fashion from as low as 9 per cent to as
high as 10 V2 per cent, if necessary, in the course of operations.
The members also agreed that, in the conduct of operations,
account should be taken of international and domestic financial
market developments, including the prospective Treasury financ­
ing. It was understood that the Chairman might call upon the
Committee to consider the need for supplementary instructions
before the next scheduled meeting if significant inconsistencies
appeared to be developing among the Committee’s various objec­
tives and constraints.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
T h e in fo r m a t io n r e v ie w e d at th is m e e t in g s u g g e s t s th a t r e a l o u tp u t
o f g o o d s a n d s e r v i c e s is d e c lin in g in th e cu rren t q u a r te r , in la r g e
p art b e c a u s e o f th e o il s it u a tio n , a n d th at p r ic e s a re c o n t in u in g to
r is e r a p id ly . In F e b r u a r y in d u s tr ia l p r o d u c tio n a n d m a n u f a c t u r in g
e m p lo y m e n t d e c lin e d a g a in , w h il e to ta l n o n fa r m p a y r o ll e m p l o y ­
m e n t r e c o v e r e d , a n d th e u n e m p lo y m e n t rate w a s u n c h a n g e d at 5 . 2
p e r c e n t . P r ic e s o f fa rm a n d f o o d p r o d u c ts a n d in d u s tr ia l c o m m o d i ­
t ie s in c r e a s e d s h a r p ly ,

a lt h o u g h le s s s o th a n in th e p r e c e d in g 2

m o n t h s . I n c r e a s e s in w a g e r a tes a p p e a r to h a v e m o d e r a te d in r e c e n t
m o n th s.

RECORD OF POLICY ACTIONS OF FOMC

437

A f te r d e p r e c ia t in g d u r in g th e first 3 w e e k s o f F e b r u a r y , th e d o lla r
h a s s in c e s h o w n little n e t c h a n g e a g a in s t le a d in g f o r e ig n c u r r e n c ie s .
T h e U . S . tra d e s u r p lu s r e m a in e d la r g e in J a n u a r y , d e s p it e a fu r th er
sh a r p r is e in th e c o s t o f p e t r o le u m im p o r ts .
The

n a r r o w ly

d e fin e d

m oney

sto ck ,

a fte r

h a v in g

d e c lin e d

in

J a n u a r y , in c r e a s e d s h a r p ly in F e b r u a r y a n d e a r ly M a r c h . B r o a d e r
m e a s u r e s o f th e m o n e y s t o c k r o s e s u b s ta n t ia lly in F e b r u a r y , a s n et
in f lo w s o f c o n s u m e r - t y p e tim e d e p o s it s r e m a in e d r e la t iv e ly s tr o n g .
B u s i n e s s s h o r t-te r m

b o r r o w in g at b a n k s a n d in th e o p e n m a rk et

h a s c o n t in u e d at a ra p id p a c e . F o ll o w in g e a r lie r d e c l i n e s , b o th sh o r ta n d lo n g -t e r m m a r k e t in te r e st r a tes h a v e r is e n a p p r e c ia b ly in r e c e n t
w eek s.
In lig h t o f th e f o r e g o in g d e v e lo p m e n t s , it is th e p o li c y o f th e
F e d e r a l O p e n M a r k e t C o m m it t e e to f o s t e r fin a n c ia l c o n d it io n s c o n ­
d u c i v e to r e s is t in g in fla tio n a r y p r e s s u r e s , su p p o r tin g a r e s u m p t io n
of

re a l

e c o n o m ic

g ro w th ,

an d

m a in t a in in g

e q u ilib r iu m

in

th e

c o u n t r y ’s b a la n c e o f p a y m e n t s .
T o im p le m e n t th is p o l i c y , w h ile t a k in g a c c o u n t o f in te r n a tio n a l
a n d d o m e s t i c fin a n c ia l m a r k e t d e v e l o p m e n t s , in c lu d in g th e p r o s p e c ­
t iv e T r e a s u r y f in a n c in g , th e C o m m it t e e s e e k s to a c h ie v e b a n k r e s e r v e
a n d m o n e y m a r k e t c o n d it io n s th a t w o u ld m o d e r a te g r o w th in m o n e ­
ta ry a g g r e g a t e s o v e r th e m o n th s a h e a d .
V o te s

fo r

t h is

a c tio n :

M essrs.

B u rn s,

H ayes,

B l a c k , B r im m e r , B u c h e r , C la y , H o lla n d , K im b r e l,
M it c h e l l ,

Sheehan,

W a l li c h ,

and

W in n .

V o tes

a g a in s t th is a c tio n : N o n e .

2.

R e v ie w

o f c o n tin u in g

a u th o riz a tio n s

This being the first meeting of the Federal Open Market Committee
following the election of new members from the Federal Reserve
Banks to serve for the year beginning March 1, 1974, and their
assumption of duties, the Committee followed its customary prac­
tice of reviewing all of its continuing authorizations and directives.
Certain amendments made to the authorization for domestic open
market operations and the authorization for foreign currency opera­
tions are reported in succeeding sections of this record. Except
for the changes resulting from those amendments, the Committee
reaffirmed the two authorizations, and also the foreign currency
directive, in their existing form.




FEDERAL RESERVE BULLETIN □ JUNE 1974

438




V o t e s fo r t h e s e a c t io n s : M e s s r s . B u r n s , H a y e s ,
B l a c k , B r im m e r , B u c h e r , C la y , H o lla n d , K im b r e l,
M it c h e l l ,

Sh eeh an ,

W a ll ic h ,

an d

W in n .

V o tes

a g a in s t t h e s e a c t io n s : N o n e .

Paragraph 2 of the authorization for domestic open market
operations authorizes the Federal Reserve Bank of New York (and,
under certain circumstances, other Reserve Banks) to purchase
short-term certificates of indebtedness directly from the Treasury,
subject to certain conditions. This authorization is, in turn, based
on a provision of Section 14(b) of the Federal Reserve Act autho­
rizing the Federal Reserve Banks to buy and sell obligations of
specified types “ directly from or to the United States,” subject
to certain conditions. It was noted at this meeting that, because
the statutory authority in question had expired on November 1,
1973, paragraph 2 of the authorization had been in a state of de
fa cto suspension since then, and that the paragraph would remain
in suspension until pending legislation to extend the authority was
enacted.
The Committee also took special note of paragraph 3 of the
domestic authorization, which authorizes 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 authorization 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 operations 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 that the lending activity in question
remained reasonably necessary and that, accordingly, the authori­
zation should remain in effect subject to periodic review.
3.

A m e n d m e n ts

to

a u th o riz a tio n

fo r

d o m e s tic

o p e n

m a rk e t

o p e ra tio n s

On the recommendation of the System Account Manager, the
Committee amended paragraph 1(a) of the authorization for do­

RECORD OF POLICY ACTIONS OF FOMC

mestic open market operations to raise from $2 billion to $3 billion
the limit on changes between Committee meetings in System
Account holdings of U .S. Government and Federal agency securi­
ties, effective March 18, 1974. The Manager noted that there had
been a marked increase in recent years in the maximum net variation
in System Account holdings between meeting dates as a result
mainly of increased variation in market factors affecting reserves,
and that in 3 of the past 12 inter-meeting periods the Committee
had found it necessary to authorize temporary increases in the limit
to $3 billion. The Committee concurred in the Manager’s view
that a permanent increase would be appropriate at this time.
The Committee also approved two clarifying changes in the
language of paragraph 1(a) recommended by the Manager, effective
March 18, 1974. One of these, which involved the insertion of
a parenthetical phrase reading “ including forward commitments”
in the statement regarding changes in System Account holdings
between meeting dates, was intended to make it clear that, for
purpose of the limit, holdings were to be calculated on a “ commit­
ment” basis. A similar phrase had been included in the corre­
sponding statement prior to March 1964. At that time the Commit­
tee had approved an amendment to the clause for the purpose of
clarifying the language in certain other respects, and in transcribing
the new language the reference to forward commitments was
inadvertently omitted.
The second clarifying change, which involved the addition of
the phrase “ including securities of the Federal Financing Bank”
in the first sentence of paragraph 1(a), was intended to make it
clear that securities of that Bank, when issued, would be treated
in System open market operations in the same manner as Treasury
securities. The Federal Financing Bank, which had been established
by legislation enacted late in 1973 for the purpose of consolidating
the financing of a variety of Federal agencies and of other borrowers
whose obligations are guaranteed by the Federal Government, was
expected to commence operations soon. Under the terms of the
legislation, the obligations of the Bank would be obligations of
the United States.




V o t e s fo r t h e s e a c t io n s : M e s s r s . B u r n s , H a y e s ,
B l a c k , B r im m e r , B u c h e r , C la y , H o lla n d , K im b r e l,

439

FEDERAL RESERVE BULLETIN □ JUNE 1974

440




M i t c h e l l,

Sheehan,

W a ll ic h ,

and

W in n .

V o tes

a g a in s t t h e s e a c t io n s : N o n e .

On the basis of recommendations by a staff committee appointed
to study System operations in bankers’ acceptances, the Committee
amended paragraph 1(b) of the domestic authorization, which
relates to open market purchases and sales of acceptances, and
the part of paragraph 1(c), governing repurchase agreements, which
relates to repurchase agreements in acceptances, effective April 1,
1974. Prior to this action the domestic authorization had authorized
System operations in prime bankers’ acceptances “ of the kinds
designated in the Regulation of the Federal Open Market Commit­
t e e . ’6 One purpose of the amendments was to incorporate the rules
governing System operations in bankers’ acceptances directly in
the Committee’s domestic authorization. A second purpose was
to modernize those rules by removing outdated provisions and
broadening somewhat the scope of bankers’ acceptances eligible
for purchase by the System. The new rules broadened the types
of acceptances eligible for purchase by eliminating the requirement
that banks have in their possession shipping documents conveying
or securing title at the time they accept drafts covering the shipment
of goods in the United States; by increasing from 6 to 9 months
the maximum maturity of acceptances eligible for purchase; and
by authorizing the purchase of acceptances that finance the storage
in the United States of any goods, rather than “ readily marketable
staples.” Dollar exchange bills, a type of instrument that is seldom
used, were eliminated from the list of acceptances authorized for
purchase. No major change in System operations in bankers’
acceptances was expected to result from these amendments.
One further amendment to paragraph 1(b) was made simply to
remove unnecessary wording. Previous language specifying that
aggregate holdings of bankers’ acceptances should not exceed the
lower of two figures— $125 million, or 10 per cent of the total
6The C om m ittee’s Regulation, in turn, had authorized operations in acceptances
of the kinds made eligible for purchase by the Reserve Banks under the Board
of Governors’ Regulation B. In companion actions, also effective April 1, 1974,
the Board of Governors rescinded its Regulation B and the Committee amended
its Regulation to delete the reference to Regulation B. Notice of these regulatory
actions was published in the F e d e ra l R e g is te r for April 1, 1974.

RECORD OF POLICY ACTIONS OF FOMC

441

volume of acceptances outstanding— was replaced by language
specifying a single limit of $125 million. The 10 per cent limitation
no longer served a useful purpose since the volume of outstanding
acceptances had grown to a level in excess of $8 billion.
V o t e s fo r t h e s e a c t io n s : M e s s r s . B u r n s , H a y e s ,
B la c k , B r im m e r , B u c h e r , C la y , H o lla n d , K im b r e l,
M it c h e ll ,

S h eehan,

W a l li c h ,

and

W in n .

V o tes

a g a in s t t h e s e a c t io n s : N o n e .

In connection with the foregoing actions, the Committee in­
structed the staff committee to conduct further studies of the
desirability of expanding System open market operations in bank­
ers’ acceptances to encompass all types of prime acceptances,
including finance bills.
Reflecting the amendments to paragraphs 1(a), 1(b), and 1(c),
the authorization for domestic open market operations read as
follows:
1. T h e F e d e r a l O p e n M a r k e t C o m m it t e e a u th o r iz e s a n d d ir e c t s th e




F ed eral R eserv e B ank o f N e w

Y o r k , to th e e x t e n t n e c e s s a r y

to ca rry o u t th e m o s t r e c e n t d o m e s t ic p o li c y d ir e c t iv e a d o p te d
at a m e e t in g o f th e C o m m it te e :
(a )

To

b u y o r s e ll U . S .

G o v e r n m e n t s e c u r it ie s ,

in c lu d in g

s e c u r it ie s o f th e F e d e r a l F in a n c in g B a n k , an d s e c u r it ie s th a t are
d ir e c t o b lig a t io n s o f , o r f u lly g u a r a n te e d a s to p r in c ip a l a n d
in te r e st b y , a n y a g e n c y o f th e U n ite d S ta t e s in th e o p e n m a r k e t,
fr o m or to s e c u r it ie s d e a le r s a n d f o r e ig n a n d in te r n a tio n a l a c ­
c o u n t s m a in t a in e d at th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k ,
o n a c a s h , r e g u la r , or d e fe r r e d d e liv e r y b a s i s , fo r th e S y s t e m
O p e n M a r k e t A c c o u n t at m a r k e t p r ic e s , a n d , fo r s u c h A c c o u n t ,
to e x c h a n g e

m a tu r in g

U .S .

G o v ern m en t and F ed eral a g e n c y

s e c u r it ie s w ith th e T r e a su r y or th e in d iv id u a l a g e n c i e s o r to a l lo w
th e m to m a tu r e w it h o u t r e p la c e m e n t ; p r o v id e d th a t th e a g g r e g a t e
a m o u n t o f U . S . G o v e r n m e n t a n d F e d e r a l a g e n c y s e c u r it ie s h e ld
in s u c h A c c o u n t ( in c lu d in g fo r w a r d c o m m it m e n t s ) at th e c l o s e
o f b u s in e s s o n th e d a y o f a m e e t in g o f th e C o m m it t e e at w h ic h
a c t io n is ta k e n w ith r e s p e c t to a d o m e s t ic p o l ic y d ir e c t iv e s h a ll
n o t b e in c r e a s e d o r d e c r e a s e d b y m o r e th an $ 3 . 0 b illio n d u r in g
th e p e r io d c o m m e n c in g w ith th e o p e n in g o f b u s in e s s o n th e d a y
f o l l o w in g s u c h m e e t in g an d e n d in g w ith th e c l o s e o f b u s in e s s
o n th e d a y o f th e n e x t su c h m e e t in g ;

442




FEDERAL RESERVE BULLETIN □ JUNE 1974

(b ) T o b u y o r s e ll in th e o p e n m a r k e t, fr o m o r to a c c e p t a n c e
d e a le r s a n d f o r e ig n a c c o u n t s m a in ta in e d at th e F e d e r a l R e s e r v e
Bank o f N ew

Y o r k , o n a c a s h , r e g u la r , o r d e fe r r e d d e liv e r y

b a s is , fo r th e a c c o u n t o f th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k
at m a r k e t d is c o u n t r a te s , p r im e b a n k e r s ’ a c c e p t a n c e s w it h m a ­
tu r itie s o f u p to 9 m o n th s at th e t im e o f a c c e p t a n c e th a t ( 1 )
a r is e o u t o f th e cu r r e n t s h ip m e n t o f g o o d s b e t w e e n c o u n tr ie s
o r w it h in th e U n ite d S t a t e s , o r ( 2 ) a r is e o u t o f th e s t o r a g e w it h in
th e U n ite d S ta t e s o f g o o d s u n d er c o n tr a c t o f s a le o r e x p e c t e d
t o m o v e in to th e c h a n n e ls o f tra d e w it h in a r e a s o n a b le t im e a n d
th a t are s e c u r e d th r o u g h o u t th e ir lif e b y a w a r e h o u s e r e c e ip t
o r s im ila r d o c u m e n t c o n v e y i n g title to th e u n d e r ly in g g o o d s ;
p r o v id e d th at th e a g g r e g a t e a m o u n t o f b a n k e r s ’ a c c e p t a n c e s h e ld
at a n y o n e t im e s h a ll n o t e x c e e d $ 1 2 5 m illio n ;
( c ) T o b u y U . S . G o v e r n m e n t s e c u r it ie s , o b lig a t io n s th a t a re
d ir e c t o b lig a t io n s o f , o r f u lly g u a r a n te e d a s to p r in c ip a l a n d
in te r e s t b y , a n y a g e n c y o f th e U n ite d S t a t e s , a n d p r im e b a n k e r s ’
a c c e p t a n c e s o f th e t y p e s a u th o r iz e d
a b o v e , fr o m

fo r p u r c h a s e u n d e r

1 (b )

n o n b a n k d e a le r s fo r th e a c c o u n t o f th e F e d e r a l

R eserve B ank o f N ew

Y o r k u n d e r a g r e e m e n t s fo r r e p u r c h a s e

o f s u c h s e c u r it ie s , o b l ig a t i o n s , or a c c e p t a n c e s in 15 c a le n d a r
d a y s o r l e s s , at ra tes th a t, u n le s s o t h e r w is e e x p r e s s l y a u th o r iz e d
b y th e C o m m it t e e , s h a ll b e d e t e r m in e d b y c o m p e t it i v e b id d in g ,
a fte r a p p ly in g r e a s o n a b le lim it a t io n s o n th e v o lu m e o f a g r e e ­
m e n ts w ith in d iv id u a l d e a le r s ; p r o v id e d th a t in th e e v e n t G o v ­
e r n m e n t s e c u r it ie s o r a g e n c y is s u e s c o v e r e d b y a n y s u c h a g r e e ­
m e n t are n o t r e p u r c h a s e d b y th e d e a le r p u r su a n t to th e a g r e e m e n t
or

a

renew al

th e reo f,

th e y

s h a ll

be

s o ld

in

th e

m ark et or

t r a n sfe r r e d to th e S y s t e m O p e n M a r k e t A c c o u n t ; a n d p r o v id e d
fu r th er th a t in th e e v e n t b a n k e r s ’ a c c e p t a n c e s c o v e r e d b y a n y
s u c h a g r e e m e n t are n o t r e p u r c h a s e d

b y th e s e lle r , th e y s h a ll

c o n t in u e to b e h e ld b y th e F e d e r a l R e s e r v e B a n k or s h a ll b e
s o ld in th e o p e n m a r k e t.
2 . T h e F e d e r a l O p e n M a r k e t C o m m it t e e a u th o r iz e s a n d d ir e c t s th e
F e d e r a l R e s e r v e B a n k o f N e w Y o r k , o r , if th e N e w Y o r k R e s e r v e
B a n k is c l o s e d , a n y o th e r F e d e r a l R e s e r v e B a n k , to p u r c h a s e
d ir e c t ly fr o m th e T r e a su r y fo r its o w n a c c o u n t ( w ith d is c r e t io n ,
in c a s e s w h e r e it s e e m s d e s ir a b le , to is s u e p a r t ic ip a t io n s t o o n e
o r m o r e F e d e r a l R e s e r v e B a n k s ) s u c h a m o u n t s o f s p e c ia l s h o r t ­
term c e r tific a te s o f in d e b te d n e s s a s m a y b e n e c e s s a r y fr o m t im e
to

t im e

fo r

th e

te m p o r a r y

a c c o m m o d a t io n

of

th e

T r e a su r y ;

p r o v id e d th at th e rate c h a r g e d o n s u c h c e r t if ic a te s s h a ll b e a

RECORD OF POLICY ACTIONS OF FOMC

ra te lA

of

443

1 p e r c e n t b e lo w

th e d is c o u n t rate o f th e F e d e r a l

R e s e r v e B a n k o f N e w Y o r k at th e tim e o f s u c h p u r c h a s e s , a n d
p r o v id e d fu r th e r th a t th e to ta l a m o u n t o f s u c h c e r t if ic a te s h e ld
at a n y o n e tim e b y th e F e d e r a l R e s e r v e B a n k s s h a ll n o t e x c e e d
$1 b illio n .
3 . In o rd er to in s u r e th e e f f e c t iv e c o n d u c t o f o p e n m a r k e t o p e r a ­
t io n s , th e F e d e r a l O p e n M a r k e t C o m m it t e e a u th o r iz e s a n d d ir e c t s
th e F e d e r a l R e s e r v e B a n k s to le n d U . S . G o v e r n m e n t s e c u r it ie s
h e ld in th e S y s t e m O p e n M a r k e t A c c o u n t to G o v e r n m e n t s e c u r i­
t ie s d e a le r s a n d to b a n k s p a r tic ip a tin g in G o v e r n m e n t s e c u r it ie s
c le a r in g

a r r a n g e m e n ts

c o n d u c te d

th r o u g h

a F ed eral

R eserve

B a n k , u n d e r s u c h in s t r u c t io n s as th e C o m m it t e e m a y s p e c if y
fr o m t im e to t im e .
4.

A u th o riz a tio n

fo r fo re ig n

c u rre n c y

o p e ra tio n s

The Committee approved an increase from $2 billion to $3 billion
in the System ’s swap arrangement with the Bank of England and
the corresponding amendment to paragraph 2 of the authorization
for foreign currency operations, effective March 26, 1974. With
this change, paragraph 2 of the authorization read as follows:
T h e F e d e r a l O p e n M a r k e t C o m m it t e e d ir e c ts th e F e d e r a l R e s e r v e
B a n k o f N e w Y o r k to m a in ta in r e c ip r o c a l c u r r e n c y a r r a n g e m e n ts
( “ s w a p ” a r r a n g e m e n ts ) fo r th e S y s t e m

O p e n M a r k e t A c c o u n t fo r

p e r io d s u p to a m a x im u m o f 12 m o n t h s w ith th e f o l lo w i n g f o r e ig n




b a n k s , w h ic h a re a m o n g t h o s e d e s ig n a t e d b y th e B o a r d o f G o v e r n o r s
o f th e F e d e r a l R e s e r v e S y s t e m u n d e r S e c t io n 2 1 4 . 5 o f R e g u la t io n
N , R e la t io n s w ith F o r e ig n B a n k s a n d B a n k e r s , a n d w it h th e a p p r o v a l
o f th e C o m m it t e e to r e n e w s u c h a r r a n g e m e n ts o n m a tu r ity :

Foreign bank
Austrian
National
Bank of
National
Bank of

National Bank
Bank of Belgium
Canada ..................
Bank of Denmark
E n glan d .................

Bank of
German
Bank of
Bank of
Bank of

France...........
Federal Bank
Italy ...
Japan ..
Mexico

Amount of
arrangement
(millions of
dollars equivalent)

250
1 ,0 0 0
2 ,0 0 0

250
3,000
2 ,0 0 0
2 ,0 0 0

3.000
2 .0 0 0

180

FEDERAL RESERVE BULLETIN □ JUNE 1974

444




Amount of
arrangement
(millions of
dollars equivalent)

Foreign bank
Netherlands Bank
Bank of Norway.
Bank of Sweden .
Swiss National Bank

500
250
300
1,400

Bank for International Settlements:
Dollars against Swiss francs.........................
Dollars against other European currencies

600
1,250

V o tes

fo r

th is

a c tio n :

M essrs.

B u rn s,

H ayes,

B la c k , B r im m e r , B u c h e r , C la y , H o lla n d , K im b r e l,
M it c h e ll,

Sheehan,

W a llic h ,

and

W in n .

V o tes

a g a in s t th is a c tio n : N o n e .

This action was taken after consultation with the U .S. Treasury.
It was expected to contribute to international monetary stability
by expanding the facilities available for coping with possible
temporary pressures on sterling arising from short-run fluctuations
in international payments flows.

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

Law Department
Statu tes, regulations, interpretations, and d ecisio n s

INTERLOCKING BANK RELATIONSHIPS
UNDER THE CLAYTON ACT

FOREIGN ACTIVITIES OF
NATIONAL BA N K S

T h e B o a r d o f G o v e r n o r s h a s a m e n d e d its R e g u ­
T h e B o a r d o f G o v e r n o r s h a s a m e n d e d its R e g u ­

la tio n

L to

p e r m it u n d e r c e r ta in

c ir c u m s t a n c e s

la tio n M to a v o id d u p lic a tio n o f E u r o - d o lla r r e ­

in te r lo c k in g s e r v ic e b y a d ir e c to r , o ffic e r o r e m ­

s e r v e r e q u ir e m e n ts u n d e r R e g u la t io n s D

p lo y e e

an d M

of

a

m em b er bank

w it h

a n o th e r

bank,

w h e r e th e f o r e ig n b r a n ch o f a m e m b e r b a n k e x ­

b a n k in g a s s o c i a t i o n , s a v in g s b a n k o r tru st c o m ­

te n d s

p a n y lo c a t e d in a lo w in c o m e or o th e r e c o n o m i ­

c r e d it

to

th e

d o m e s t ic

o f fic e

of

a n o th e r

m em b er bank.

c a l ly d e p r e s s e d a r e a .

AMENDMENT TO REGULATION M
E f f e c t iv e M a y 2 4 ,

1 9 7 4 , s e c t io n 2 1 3 .7 ( b )

AMENDMENT AND INTERPRETATION
OF REGULATION L
of

R e g u la t io n M is a m e n d e d to rea d a s f o l lo w s :

1.

E f f e c t iv e J u n e 2 0 ,

1 9 7 4 , s e c t io n

2 1 2 .3

a m e n d e d to read a s f o llo w s :
S E C T IO N 2 1 3 .7 — R E S E R V E S A G A IN S T
S E C T IO N 2 1 2 .3 — R E L A T IO N S H IP S

F O R E IG N B R A N C H D E P O S IT S

P E R M IT T E D B Y B O A R D
;{c

;{:

In a d d itio n to a n y r e la t io n s h ip s c o v e r e d b y th e
fo r e g o in g e x c e p tio n ,

(b ) C r e d i t e x t e n d e d t o U . S . r e s i d e n t s .

n o t m o r e th a n o n e o f th e

f o l lo w i n g r e la t io n s h ip s is h e r e b y p e r m itte d b y th e
5j:

B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m
in th e c a s e o f a n y o n e in d iv id u a l.

P r o v i d e d , T h a t th is p a ra g ra p h

d o e s n o t a p p ly
sf?

to c r e d it e x t e n d e d ( 1 ) in th e a g g r e g a t e a m o u n t o f

^

^4

5fc

$ 1 0 0 , 0 0 0 o r le s s to a n y U . S . r e s id e n t, ( 2 ) b y a
f o r e ig n b r a n c h w h ic h at n o t im e d u r in g th e c o m ­
p u ta tio n

p e r io d

had

c r e d it o u ts t a n d in g

to

U .S .

r e s id e n ts e x c e e d i n g $1 m i ll io n , ( 3 ) to e n a b le th e

( g ) B a n k in lo w i n c o m e a r e a .
o ffic e r o r e m p l o y e e

of a

A n y d ir e c t o r ,

m em b er bank

of

th e

F e d e r a l R e s e r v e S y s t e m m a y b e at th e s a m e tim e

b o r r o w e r to c o m p ly w ith th e r e q u ir e m e n ts o f th e

a d ir e c t o r , o ffic e r o r e m p lo y e e o f n o t m o r e th a n

O ffic e o f F o r e ig n D ir e c t I n v e s t m e n t s , D e p a r tm e n t

o n e o th e r b a n k lo c a t e d , o r to b e lo c a t e d , in a lo w

o f C o m m e r c e ,9 ( 4 ) u n d e r b in d in g

c o m m it m e n t s

in c o m e

or

o th e r

e c o n o m ic a lly

d ep ressed

area,

e n te r e d in to b e f o r e M a y 1 7 , 1 9 7 3 , o r ( 5 ) to a n o th e r

s u b je c t to th e f o l lo w i n g c o n d it io n s : ( 1 ) s u c h r e la ­

m e m b e r b a n k th a t w ill b e m a in t a in in g r e s e r v e s o n

t io n s h ip is d e t e r m in e d b y th e B o a r d to b e n e c e s ­

s u c h c r e d it u n d e r § 2 0 4 . 5 ( c ) o f R e g u la t io n D .

sa r y to p r o v id e m a n a g e m e n t o r o p e r a t in g e x p e r t is e
to s u c h o th e r b a n k ; ( 2 ) n o t m o r e th a n th r e e in te r ­
lo c k in g r e la t io n s h ip s b e t w e e n a n y t w o b a n k s s h a ll
b e p e r m itte d b y th is p a r a g r a p h , e x c e p t th at p e r s o n s
s e r v in g

in in te r lo c k in g r e la t io n s h ip s p u r su a n t to

th is p a ra g ra p h s h a ll
9The branch may in good faith rely on the borrower’s
certification that the funds will be so used.




in n o

m a jo r ity o f th e b o a rd

in s t a n c e c o n s t it u t e

a

o f d ir e c to r s o f th e o th e r

b a n k ; ( 3 ) n o in te r lo c k in g r e la t io n s h ip p e r m itte d b y

445

is

446

FEDERAL RESERVE BULLETIN □ JUNE 1974

th is p a r a g ra p h

s h a ll

c o n t in u e

fo r

m ore

th a n

a

AMENDMENTS TO REGULATION Y

f iv e -y e a r p e r io d , a n d ( 4 ) u p o n s u c h o th e r te r m s
an d c o n d it io n s

in a d d itio n

to or in

lie u o f th e

f o r e g o i n g , a s m a y b e d e t e r m in e d b y th e B o a r d in
a n y s p e c ific c a s e .

E f f e c t iv e J u n e 2 0 , 1 9 7 4 , s e c t io n 2 2 5 .4 ( a ) ( 1 2 ) ( i i )
is a m e n d e d to rea d a s f o l lo w s :
S E C T IO N 2 2 5 .4 — N O N B A N K IN G A C T IV IT IE S
(a ) A c t i v i t i e s

2.

T h e B o a r d h a s a ls o a d o p te d an in te r p r e ta tio n

c lo s e ly r e la te d

m a n a g in g o r c o n t r o llin g b a n k s *

r e la tin g to c e r ta in te r m s u s e d in th e r e g u la t io n as

lo w in g a c t iv it ie s

h ave b een

s e t fo r th b e l o w .

B oard

c lo s e ly

to

be

so

to b a n k in g

d e t e r m in e d

r e la te d

or

* * . T h e fo l­
to

by

th e

b a n k in g

or

m a n a g in g or c o n t r o llin g b a n k s a s to b e a p r o p er
E x e m p tio n fr o m S e c tio n 8

in c id e n t th e r e to .

o f t h e C la y to n A c t fo r B a n k s
in L o w I n c o m e A r e a s

E f f e c t iv e J u n e 2 0 , 1 9 7 4 , th e B o a r d o f G o v e r n o r s

( 1 2 ) p r o v id in g m a n a g e m e n t c o n s u lt in g a d v ic e *

a m e n d e d s e c t io n 2 1 2 .3 o f R e g u la t io n L to e x e m p t

to n o n a ffilia te d b a n k s P r o v i d e d th a t, * * * ( ii) n o

u n d e r c e r ta in c ir c u m s t a n c e s fr o m th e p r o h ib itio n s

o ffic e r , d ir e c to r o r e m p l o y e e o f th e b a n k h o ld in g

o f s e c t io n 8 o f th e C la y t o n A c t ( 1 5 U . S . C . § 1 9 )

c o m p a n y o r a n y o f its s u b s id ia r ie s s e r v e s a s an

in t e r lo c k in g r e la t io n s h ip s b e t w e e n a m e m b e r b a n k

o ffic e r , d ir e c to r o r e m p lo y e e o f th e c lie n t b a n k ,

a n d a b a n k in a “ lo w in c o m e o r o th e r e c o n o m i ­

e x c e p t w h ere su ch

c a l l y d e p r e s s e d a r e a .”

o r w o u ld b e p e r m itte d b y § 2 1 2 . 3 ( g ) o f R e g u la t io n

( 1 2 C F R 2 1 2 . 3 ( g ) ) . T h is

in te r p r e ta tio n is in te n d e d to s e t fo r th s o m e o f th e
c r ite r ia th a t m a y b e u s e d in th e d e s ig n a t io n o f s u c h

L*

in t e r lo c k in g r e la t io n s h ip s are

* * *

T h e B o a r d o f G o v e r n o r s h a s a ls o a m e n d e d

§

2 2 5 .4 ( a ) ( 4 ) o f R e g u la t io n Y to c la r if y th e b o u n d a ­

an a rea .
A “ l o w in c o m e o r o th e r e c o n o m i c a ll y d e p r e s s e d

r ie s u p o n d e p o s it - t a k in g a c t i v i t ie s th a t are p r o p e r ly

a r e a ” is a n y a r e a , w it h o u t reg a rd to p o lit ic a l o r

in c id e n ta l to tru st c o m p a n y a c t iv it ie s w h ic h th e

o th e r s u b d i v i s io n s o r b o u n d a r ie s , w h ic h h a s s o m e

B o a r d h a s d e t e r m in e d to b e s o c l o s e l y r e la te d to

o r a ll o f th e f o l l o w in g c h a r a c te r is tic s :

b a n k in g o r m a n a g in g o r c o n t r o llin g b a n k s as to

( 1 ) th e rate o f u n e m p lo y m e n t is s u b s ta n t ia lly
a b o v e th e n a tio n a l rate;

th e

( 2 ) th e m e d ia n le v e l o f f a m ily in c o m e is s i g n i f ­

k in d s

of

a c t i v i t ie s

a u th o r iz e d

under

§

2 2 5 .4 ( a ) ( 4 ) in c lu d e t h o s e p e r fo r m e d n o t o n ly b y
tru st c o m p a n y s u b s id ia r ie s th a t are S ta t e - c h a r t e r e d ,

ic a n t ly b e l o w th e n a tio n a l m e d ia n ;
( 3 ) th e e c o n o m y o f th e a rea h a s tr a d itio n a lly
b e e n d o m in a t e d b y o n ly o n e or t w o

b e a p r o p e r in c id e n t th e r e t o , a n d to p r o v id e th at

in d u s t r ie s ,

b u t a ls o b y a n y s u c h s u b s id ia r ie s th a t m a y o p e r a te
a s lim it e d p u r p o s e tru st c o m p a n ie s u n d e r n a tio n a l
b a n k c h a r te r s a n d th a t d o n o t b o th a c c e p t d e m a n d

w h ic h a re in a sta te o f lo n g -t e r m d e c lin e ;
( 4 ) th e ra te o f o u tm ig r a t io n o f la b o r o r c a p ita l

d e p o s it s a n d m a k e c o m m e r c ia l lo a n s .

is s u b s ta n tia l;
( 5 ) th e a rea is a d v e r s e ly a f fe c te d b y c h a n g in g

E f f e c t iv e J u n e 2 4 , 1 9 7 4 s e c t io n 2 2 5 .4 ( a ) ( 4 ) is
a m e n d e d to read a s f o l lo w s :

in d u str ia l t e c h n o lo g y ;
( 6 ) th e a rea is a d v e r s e ly a f fe c te d b y c h a n g e s

S E C T IO N 2 2 5 .4 — N O N B A N K IN G A C T IV IT IE S

in n a tio n a l d e f e n s e f a c i lit ie s or p r o d u c tio n .

(a) A c t iv itie s

BANK HOLDING COM PANIES

c lo s e ly

r e la te d

to b a n k in g

or

T h e B o a r d o f G o v e r n o r s h a s a m e n d e d its R e g u ­
la tio n Y to p e r m it a b a n k h o ld in g c o m p a n y

to

e x t e n d m a n a g e m e n t c o n s u lt in g a d v ic e to an u n a f ­
filia te d b a n k w ith w h ic h th e b a n k h o ld in g c o m p a n y
o r a n y o f its s u b s id ia r ie s h a s e s t a b lis h e d in t e r lo c k ­
in g r e la t io n s h ip s p u r su a n t t o s e c t io n 2 1 2 . 3 ( g ) o f
R e g u la t io n L .




*In performing this activity bank holding companies are not
authorized to perform tasks or operations or provide services
to client banks either on a daily or continuing basis, except
as shall be necessary to instruct the client bank on how to
perform such services for itself. See also the Board’s interpre­
tation of bank management consulting advice (12 CFR
225.130).

LAW DEPARTMENT

447

m a n a g in g o r c o n t r o llin g b a n k s .*
lo w in g

p e r s o n a l p r o p e r ty , or fo r s u c h o w n e r o r in v e s t o r

m a n a g in g o r c o n t r o llin g b a n k s a s to b e a p r o p e r

a s a g e n t o r c u s t o d ia n o f fu n d s h e ld fo r in v e s t m e n t
o r e s c r o w a g e n t , o r fo r an is s u e r o f , or b r o k e r

in c id e n t th e r e to :

o r d e a le r in s e c u r it ie s , in a c a p a c it y s u c h a s p a y in g

be

so

been

c lo s e ly

d e t e r m in e d

r e la te d

to

by

o r in v e s t o r in , rea l p r o p e r t y , s e c u r it ie s , or o th e r

or

to

have

* * T h e fo l­
th e

B oard

a c t iv it ie s

b a n k in g

a g en t,

d iv id e n d

d is b u r s in g

a g en t,

or

s e c u r it ie s

c le a r in g a g e n t , a n d n o t e m p l o y e d b y or fo r th e
a c c o u n t o f th e c u s t o m e r in th e m a n n e r o f a g e n e r a l
(4 )

p e r f o r m in g or c a r r y in g o n a n y o n e o r m o r e

p u r p o s e c h e c k in g a c c o u n t o r b e a r in g in te r e s t , o r

o f th e f u n c t io n s or a c t iv it ie s th a t m a y b e p e r fo r m e d

( iii) s a le o f f e d e r a l f u n d s , m a k in g o f c a ll lo a n s

o r c a r r ie d o n b y a tru st c o m p a n y ( in c lu d in g a c t i v i ­

to s e c u r it ie s d e a le r s o r p u r c h a s e o f m o n e y m a r k e t

t ie s o f a fid u c ia r y , a g e n c y , o r c u s t o d ia n n a tu r e ),

in s tr u m e n ts s u c h a s c e r t if ic a te s o f d e p o s it , c o m ­

in th e m a n n e r a u th o r iz e d b y F e d e r a l o r S ta te la w ,

m e r c ia l p a p e r , g o v e r n m e n t o r m u n ic ip a l s e c u r i t ie s ,

s o lo n g a s th e in s titu tio n d o e s n o t m a k e lo a n s or

a n d b a n k e r s a c c e p t a n c e s ( s u c h a u th o r iz e d

i n v e s t m e n t s o r a c c e p t d e p o s it s o th e r th a n ( i) d e ­

a n d in v e s t m e n t s , h o w e v e r , m a y n o t b e u s e d a s

p o s it s th a t

a m e th o d o f c h a n n e lin g f u n d s to n o n b a n k in g a ffil­

are

g en era ted

fr o m

tru st

fu n d s

not

c u r r e n tly in v e s t e d a n d are p r o p e r ly s e c u r e d to th e

lo a n s

ia te s o f th e tru st c o m p a n y ) . . . .

e x t e n t r e q u ir e d b y l a w , o r ( ii) d e p o s it s r e p r e s e n t in g
f u n d s r e c e iv e d fo r a s p e c ia l u s e in th e c a p a c it y
o f m a n a g in g a g e n t or c u s t o d ia n fo r an o w n e r o f ,

BANK

H O L D IN G
IS S U E D

C O M PA N Y
BY

TH E

A N D

B O A R D

O R D ER S UNDER SECTION 3 OF
BANK HOLDING COMPANY ACT

BA NK
O F

M E R G E R

O R D E R S

G O V E R N O R S

th e S t a t e .1 A c q u is it io n

o f B a n k w o u ld

in c r e a s e

A p p l i c a n t ’s sh a r e o f S ta te d e p o s it s b y

1 .5 p e r ­

c e n t a g e p o in ts to a to ta l o f 6 . 3 p e r c e n t , b u t w o u ld
F ID E L IT Y U N IO N B A N C O R P O R A T IO N ,

n o t a lte r A p p lic a n t ’s r a n k in g a m o n g th e S t a t e ’s

N E W A R K , N EW JE R SE Y
O rder A

p p r o v in g

A c q u is it io n

o th e r

of

B

b a n k in g

o r g a n iz a t io n s .

The

fo u r

la r g e s t

m u ltib a n k h o ld in g c o m p a n ie s in N e w J e r s e y c o n ­

ank

trol 2 6 . 5 p er c e n t o f to ta l c o m m e r c ia l b a n k d e p o s ­
F id e lit y U n io n B a n c o r p o r a tio n , N e w a r k , N e w

its in th e S ta te w h il e th e r e m a in in g fiv e m u ltib a n k

J e r s e y , a b a n k h o ld in g c o m p a n y w it h in th e m e a n ­
in g o f th e B a n k H o ld in g C o m p a n y A c t , h a s a p ­

h o ld in g c o m p a n ie s c o n t r o l 1 3 .5 p e r c e n t o f s u c h

p lie d fo r th e B o a r d ’s a p p r o v a l u n d e r § 3 ( a ) ( 3 ) o f

d e p o s it s . T h e le a d b a n k s in t h e s e in s t itu t io n s
c o m p e t e w ith s u b s ta n t ia lly la r g e r b a n k s lo c a t e d in

th e A c t ( 1 2 U . S . C . 1 8 4 2 ( a ) ( 3 ) ) to a c q u ir e a ll o f

N e w Y o r k a n d P h ila d e lp h ia fo r c o m m e r c ia l b u s i ­

th e v o t in g sh a r e s o f C o lo n ia l F ir st N a t io n a l B a n k ,

n e s s a n d fo r p e r s o n a l a c c o u n t s o f a la r g e n u m b e r

R e d B a n k , N e w J e r s e y ( “ B a n k ” ).

o f p erson s w h o
a n o t h e r .2

N o t i c e o f th e a p p lic a t io n , a f fo r d in g o p p o r tu n ity
fo r in te r e s te d

w ork

in

one

a rea a n d

liv e

in

p e r s o n s to s u b m it c o m m e n t s a n d

B a n k h o ld s a g g r e g a t e d e p o s it s o f a p p r o x im a t e ly

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w it h § 3 ( b )

$ 2 9 4 m illio n a n d o p e r a t e s a to ta l o f 18 b a n k in g
o f f i c e s , 1 6 o f w h ic h are lo c a t e d in M o n m o u t h

o f th e A c t . T h e tim e fo r f ilin g c o m m e n t s a n d v i e w s
h a s e x p ir e d ,

a n d th e B o a r d

h a s c o n s id e r e d

th e

C o u n ty

and
The

2 o f w h ic h
r e le v a n t

are lo c a t e d

g e o g r a p h ic

in M e r c e r

a p p lic a tio n a n d a ll c o m m e n t s r e c e iv e d in lig h t o f

C o u n ty .

m a r k e ts

th e fa c to r s s e t fo rth in § 3 ( c ) o f th e A c t ( 1 2 U . S . C .

a n a ly s is o f th e c o m p e t it iv e e f f e c t s o f th e p r o p o s e d

fo r

1 8 4 2 (c )).
A p p lic a n t , th e fo u r th la r g e s t b a n k h o ld in g c o m ­
p a n y a n d b a n k in g

o r g a n iz a t io n

c o n t r o ls f o u r b a n k s w it h

in N e w

a g g reg a te

Jersey,

d e p o s it s o f

a p p r o x im a t e ly $ 9 1 6 m i ll i o n , r e p r e s e n t in g 4 . 8 p er
c e n t o f th e to ta l d e p o s it s in c o m m e r c ia l b a n k s in




U n le ss otherwise noted, all banking data are as of June
30, 1973, and reflect bank holding company formations and
acquisitions approved through March 30, 1974.
2See Board’s Order of April 7, 1972, approving application
of Midlantic Banks, Inc., Newark, New Jersey, to acquire
Citizens National Bank, Englewood, New Jersey. 58 Federal
R eserve B u l l e t i n 475 (1972).

448

FEDERAL RESERVE BULLETIN □ JUNE 1974

a c q u is it io n

a re

th e

A sb u ry

P ark

and

F r e e h o ld

w it h c h a r te r s p r o h ib itin g m e r g e r or a c q u is it io n b y

m a r k e t,

a b a n k h o ld in g c o m p a n y fo r th e first fiv e y e a r s ;

12 b a n k in g o r g a n i­

th e r e m a in in g t w o b a n k s h a v e s p e c if ic a lly r e je c te d

z a t io n s a n d h o ld s d e p o s it s o f a p p r o x im a t e ly $ 1 7 0

p r o p o s e d a ffilia tio n w ith A p p lic a n t . T h e r e f o r e , th e

b a n k in g

m a r k e t s .3 In th e A s b u r y

B a n k is th e th ir d la r g e s t o f
m i ll i o n , r e p r e s e n t in g
d e p o s it s .

In th e

P ark

1 9 p e r c e n t o f th e m a r k e t

F r e e h o ld

m a r k e t,

Bank

is

th e

B o a r d c o n c lu d e s th a t c o n s u m m a t io n o f th e p r o ­
p o sed

t r a n s a c tio n

w o u ld

not

have

s ig n if ic a n tly

s e c o n d la r g e s t o f s e v e n b a n k in g o r g a n iz a t io n s an d

a d v e r s e e f f e c t o n p o te n t ia l c o m p e t it io n w it h in th e

h o ld s d e p o s it s o f a p p r o x im a t e ly $ 6 0 m i ll io n , r e p ­

r e le v a n t m a r k e ts .

r e s e n tin g a b o u t 4 0 p e r c e n t o f m a r k e t d e p o s it s .

C o n s id e r a t io n s

r e la tin g

to

th e

fin a n c ia l

an d

A p p lic a n t d o e s n o t h a v e a s u b s id ia r y b a n k lo c a t e d

m a n a g e r ia l r e s o u r c e s a n d fu tu r e p r o s p e c ts o f A p ­

in

A p p l ic a n t ’s

p lic a n t , its s u b s id ia r ie s , a n d B a n k a re r e g a r d e d a s

b a n k in g s u b s id ia r y c l o s e s t to B a n k ( N a t io n a l B a n k

e it h e r

of

s a t is f a c t o r y a n d c o n s i s t e n t w it h a p p r o v a l o f th e

o f N e w J e r s e y ) h a s an o f fic e s itu a te d le s s th a n 8

a p p lic a tio n .

m i le s a w a y

th e

fr o m

r e le v a n t

m a r k e ts .

a n o f fic e o f

B ank.

H ow ever,

A p p lic a n t p r o p o s e s t o in tr o d u c e n e w

s e r v ic e s

n e ith e r o f t h e s e in s t itu t io n s d e r iv e a n a p p r e c ia b le

a n d im p r o v e c e r ta in s e r v i c e s p r e s e n tly o f fe r e d b y

a m o u n t o f d e p o s it s o r lo a n s fr o m th e s e r v ic e area

B a n k . T h e s e s e r v i c e s w o u ld in c lu d e : in tr o d u c in g

o f th e o t h e r ,

nor d o

a n y o f A p p li c a n t ’s o th e r

n o -c h a r g e c h e c k in g

s u b s id ia r ie s c o m p e t e w it h B a n k to a n y s ig n if ic a n t

w ith

o v e r d r a ft

e x t e n t . A s a r e s u lt, th e r e a p p e a r s to b e n o m e a n ­

s e r v ic e s ;

( w ith

p r iv il e g e s

p r o v id in g

a
and

m in im u m
bank

th e m a x im u m

b a la n c e )

c r e d it

ca rd

in te r e st

r a te s

in g fu l c o m p e t it io n e x is t i n g b e t w e e n A p p lic a n t a n d

a l lo w a b le o n r e g u la r s a v in g s a c c o u n t s , m a x im u m

B a n k . A c c o r d i n g ly , th e B o a r d c o n c l u d e s th at th e

in te r e s t ra te s o n 4 - y e a r

p ro p o sed

lo w e r ra te s o n

tr a n s a c tio n

w o u ld

not h a v e

a

s ig n if i­

c a n t ly a d v e r s e e f f e c t o n e x i s t i n g c o m p e t it io n .
A lt h o u g h A p p lic a n t is n o t p r e s e n tly r e p r e s e n te d

A ffilia t io n

w ith

sa v in g s

a u to a n d

c e r t if ic a te s

o th e r c o n s u m e r

A p p lic a n t

s h o u ld

a ls o

and

lo a n s .

enhance

B a n k ’s c a p a b ilit y to p r o v id e c o n s t r u c t io n f in a n c ­

in th e a r e a s e r v e d b y B a n k , it a p p e a r s to h a v e

i n g , la r g e c o m m e r c ia l lo a n s , fa rm le n d in g , c o m ­

th e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s to e s ta b lis h

p u te r s e r v i c e s , a n d in te r n a tio n a l a n d tru st s e r v ic e s .

b r a n c h o f f ic e s in M o n m o u t h C o u n t y .

H ow ever,

T h e s e c o n s id e r a t io n s r e la t in g to th e c o n v e n i e n c e

m a n y o f th e c o m m u n it ie s th at are n o w o p e n to

a n d n e e d s o f th e c o m m u n it ie s to b e s e r v e d le n d

b r a n c h in g o r th a t w ill s o o n b e o p e n to b r a n c h in g

w e ig h t to w a r d a p p r o v a l. It is th e B o a r d ’s j u d g m e n t

( d u e to c h a n g e s in th e S ta te b r a n c h in g a n d p r o t e c ­

th a t c o n s u m m a t io n o f th e p r o p o s a l w o u ld b e in

tio n s t a t u te s ) h a v e p o p u la t io n a n d d e p o s it s p e r
b a n k in g o f f ic e r a tio s b e l o w th e S ta te a v e r a g e , or

th e p u b lic in te r e s t , a n d th a t th e a p p lic a tio n s h o u ld
be app roved.

th e c o m m u n it ie s a re n o t c e n t r a lly lo c a t e d in th e

O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n is

c o u n ty s o a s to s e r v e a s a d e s ir a b le lo c a t io n fo r

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e

a b a n k o f f ic e . F u r th e r m o r e , th e r e h a s b e e n s ig n if i­

tr a n s a c tio n sh a ll n o t b e m a d e (a ) b e f o r e th e th ir ­

c a n t b r a n c h in g a c t iv it y b y th e e x i s t i n g b a n k s in

tie th c a le n d a r d a y f o l l o w in g th e d a te o f t h is O rd er

M o n m o u t h C o u n t y , w it h th e r e s u lt th a t m a n y o f

o r (b ) la ter th a n th r e e m o n t h s a fte r th e d a te o f

t h e a ttr a c tiv e s it e s fo r b r a n c h o f fic e s h a v e b e e n

th is O r d e r , u n le s s s u c h p e r io d is e x t e n d e d fo r g o o d

p r e e m p te d . T h u s , it a p p e a r s u n lik e ly th at A p p l i­

c a u s e b y th e B o a r d , o r b y th e F e d e r a l R e s e r v e

c a n t w ill e n te r th e r e le v a n t m a r k e ts b y d e

B a n k o f N e w Y o r k p u r su a n t to d e le g a t e d a u th o r ­

novo

b r a n c h in g . W ith r e s p e c t t o f o o t h o ld e n tr y in to th e
m a r k e ts , it a p p e a r s th a t A p p lic a n t w o u ld b e u n a b le
to e n te r M o n m o u t h C o u n ty th r o u g h s u c h m e a n s
b eca u se

o f th e u n a v a ila b ilit y

ity .
B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e
M ay 24, 1974.

o f an a p p r o p r ia te

e n tr y v e h i c l e . M o s t b a n k s in e ith e r m a r k e t are
la r g e r th a n B a n k , o r a lr e a d y s u b s id ia r ie s o f o th e r
b a n k h o ld in g c o m p a n ie s , o r n e w l y c h a r te r e d b a n k s

V o tin g fo r th is a c tio n : V ic e C h a ir m a n M itc h e ll a n d G o v e r ­
n o rs S h e e h a n , H o lla n d , a n d W a llic h . V o tin g a g a in s t th is a c ­
tio n : G o v e r n o r s B r im m e r a n d B u c h e r . A b s e n t a n d n o t v o tin g :
C h a ir m a n B u rn s .

(Signed) C hester B. Feldberg ,
[seal]
3The Asbury market is approximated by the eastern and
coastal portions of Monmouth County, not extending beyond
10 miles inland. The Freehold market is approximated by six
communities and part of a seventh in central Monmouth
County. The deposit data for these markets is as of June 30,
1972.




Secretary of the Board.

449

LAW DEPARTMENT

D

Statem ent

is s e n t in g

G o v e r n o r s B r im m e r
We

w o u ld

deny

th e

and

b r a n c h in g h a v e

of

B ucher

a p p lic a tio n

of

b een

h e ig h t e n e d

due

to

recent

c h a n g e s in N e w J e r s e y b r a n c h b a n k in g a n d p r o ­

F id e lit y

t e c t io n

sta tu te s ;

o n ly

8

of

53

c o m m u n it ie s

in

U n io n B a n c o r p o r a tio n , N e w a r k , N e w J e r s e y , to

M o n m o u t h C o u n ty w ill b e c lo s e d to b r a n c h in g b y

a c q u ir e

J a n u a ry 1 , 1 9 7 5 , a n d o n l y o n e w ill r e m a in c l o s e d

a ll th e

v o t in g

sh a res

o f C o lo n ia l

F ir st

N a t io n a l B a n k , R e d B a n k , N e w J e r s e y ( “ B a n k ” ).

a fter 1 9 7 7 . U n d e r s u c h c ir c u m s t a n c e s , w e fa il to

In o u r v i e w , th e p r o p o s e d tr a n s a c tio n w o u ld h a v e

p e r c e iv e th e n e e d fo r A p p lic a n t to e x p a n d th r o u g h

s ig n if ic a n t a d v e r s e e f f e c t s o n

th e S ta te b a n k in g

stru ctu re a n d o n p o te n t ia l c o m p e t it io n in t w o o f
th e m a r k e ts in w h ic h B a n k o p e r a t e s .

th e a c q u is it io n o f s u c h a s ig n if ic a n t c o m p e t it i v e
fo rce as B an k .
A t th e p r e s e n t t im e , B a n k is a s tr o n g c o m p e t i ­

A lt h o u g h A p p lic a n t ’s r a n k in g a m o n g o th e r S ta te

t iv e f o r c e in th e m a r k e t, a s is d e m o n s t r a te d b y

b a n k in g o r g a n iz a t io n s w o u ld b e u n c h a n g e d a s a

its r a n k in g a m o n g o th e r b a n k s a n d its sh a r e o f

r e s u lt o f th e c o n s u m m a t io n o f th e p r o p o s a l, a c ­

d e p o s it s . In th e A s b u r y P ark m a r k e t, B a n k is th e

q u is it io n o f B a n k w o u ld

third la r g e s t o f t w e l v e b a n k in g o r g a n iz a t io n s w ith

p e r p e tu a te th e p r e s e n t

tren d to w a r d in c r e a s e d c o n c e n t r a t io n o f b a n k in g

1 9 p er c e n t o f th e d e p o s it s ; in th e F r e e h o ld m a r k e t,

r e s o u r c e s in N e w J e r s e y . R e c e n t l y , s e v e r a l o f th e

B a n k is th e s e c o n d la r g e s t o f s e v e n o r g a n iz a t io n s

la r g e s t b a n k

w ith a b o u t 3 9

h o ld in g

c o m p a n ie s

in

N ew

Jersey

p er c e n t o f th e d e p o s i t s . In th e

h a v e g r o w n to su b s ta n tia l s i z e th r o u g h a c q u is it io n

A sbu ry

a c t iv it y . F u r th e r m o r e , in lig h t o f th e n e w l y g r a n te d

o r g a n iz a t io n s ( in c lu d in g B a n k ) h o ld 7 3 p e r c e n t

P ark

m a r k e t,

th e

fo u r

la r g e s t

b a n k in g

S t a t e - w id e b r a n c h in g la w s , th e lik e lih o o d o f c o n ­

o f th e d e p o s it s , a n d in th e F r e e h o ld m a r k e t, th e

tin u e d g r o w t h o f b a n k h o ld in g c o m p a n ie s h a s b e e n

tw o

g r e a tly e n h a n c e d . C u r r e n tly , th e S t a t e ’s fo u r la r g ­

B a n k ) h o ld a b o u t 91 p e r c e n t o f th e d e p o s it s . In

e s t b a n k h o ld in g c o m p a n ie s c o n t r o l 2 6 . 5 p er c e n t

te r m s o f c o n c e n t r a t io n l e v e l s , th e p r e s e n t p r o p o s a l

la r g e s t

b a n k in g

o r g a n iz a t io n s

( in c lu d in g

o f to ta l S ta te d e p o s i t s , w h ile th e r e m a in in g fiv e

w o u ld s o li d i f y th e h ig h l e v e l s o f c o n c e n t r a t io n in

m u lt i- b a n k h o ld in g

per

b o th o f th e r e le v a n t m a r k e ts a n d r a is e b a rriers to

c e n t o f S ta te d e p o s i t s . A p p r o v a l o f th is p r o p o s a l

e n tr y b y o r g a n iz a t io n s n o t r e p r e s e n te d in e ith e r

w o u ld in c r e a s e th is e x i s t i n g

a rea .

c o m p a n ie s c o n tr o l

1 3 .5

s iz e d is p a r ity to an

e v e n g r e a te r e x t e n t w h ile f o r e c lo s i n g th e p o s s i ­

G iv e n th e p r e s e n t str u c tu r e o f b a n k in g in th e

b ility o f B a n k r e m a in in g in d e p e n d e n t o r b e c o m in g

A s b u r y P ark a n d F r e e h o ld m a r k e ts , th e p r o s p e c t

a ffilia te d w ith o n e o f th e S t a t e ’s s m a lle r b a n k in g

o f Bank

o r g a n iz a t io n s .

f o r c e is c le a r ly p r e f e r a b le to th e p r e s e n t p r o p o s a l.

r e m a in in g

an

in d e p e n d e n t

c o m p e t it iv e

W e a ls o b e l i e v e th at t h is p r o p o s a l w o u ld h a v e

A s in d ic a te d a b o v e , B a n k is n o w a v ia b le c o m p e t ­

s u b s ta n tia l a d v e r s e e f f e c t s o n c o m p e t it io n w it h in

ito r in th e m a r k e ts it s e r v e s . I f th is p r o p o s a l is

th e A s b u r y P ark a n d F r e e h o ld b a n k in g m a r k e ts .

n o t a p p r o v e d , it is r e a s o n a b le to a s s u m e th at B a n k

In v i e w o f its a b s o lu t e s i z e a n d its p r o x im it y to
t h e s e a r e a s , A p p lic a n t a p p e a r s to b e a lik e ly e n ­

w o u ld c o n t in u e in th is m a n n e r . B a n k h a s d e m o n ­

trant to th e a r e a s s e r v e d b y B a n k . M o r e o v e r , th e

le a d in g b a n k s in th e a r e a s it s e r v e s .

record

f in a n c ia l a n d m a n a g e r ia l r e s o u r c e s — a s w e ll a s th e

a s o f A p r il 3 , 1 9 7 4 , B a n k h a d r e c e iv e d a p p r o v a l
fr o m th e C o m p tr o lle r o f th e C u r r e n c y to e s t a b lis h

in c lin a tio n — to

f o u r a d d itio n a l b r a n c h e s .

sh o w s

th a t

th e

expand

A p p lic a n t
in to

p o ssesses

M o n m o u th

th e

C o u n ty

th r o u g h m e a n s o th e r th a n th e p r e s e n t p r o p o s a l s u c h
a s b r a n c h in g o r d e n o v o e n tr y .

stra ted its a b ility to c o n t in u e to b e o n e o f th e
M oreover,

T h e p r e s e n t p r o p o s a l,

h o w e v e r , w o u ld f o r e c lo s e th e d e v e lo p m e n t o f s i g ­
n ific a n t c o m p e t it io n b e t w e e n a lik e ly e n tr a n t ( A p ­

E n try in to M o n m o u t h C o u n ty th r o u g h a lte r n a ­

p lic a n t) in to th e r e le v a n t m a r k e ts a n d o n e o f th e

t iv e m e a n s w o u ld h a v e th e s a lu ta r y e f f e c t o f in ­

le a d in g b a n k s in t h o s e m a r k e ts . F o r t h e s e r e a s o n s ,

c r e a s in g c o m p e t it io n b y a d d in g an e f f e c t i v e c o m ­

it is o u r v i e w

p e tito r to th e m a r k e ts w h ile a ls o p r e s e r v in g th e

w o u ld h a v e s ig n if ic a n t a d v e r s e e f f e c t s o n c o m p e t i ­

th at a p p r o v a l

o f th e a p p lic a tio n

p o s s i b il i t y o f th e A s b u r y P ark an d F r e e h o ld m a r ­

t io n .

k e ts b e c o m i n g l e s s c o n c e n t r a t e d . A p p lic a n t e s t a b ­

T h e s e c o m p e t i t iv e c o n s id e r a t io n s r e q u ir e d e n ia l

lis h e d a d e n o v o b a n k in M o r r is to w n in 1 9 7 3 , an d

o f th e a p p lic a tio n u n le s s th e a n t ic o m p e t it iv e e f ­

its s u b s id ia r ie s file d fo r a p p r o v a l o f at le a s t fiv e

f e c t s o f th e p r o p o s a l a re o u t w e ig h e d b y th e b e n e ­

b r a n c h e s in th e s a m e y e a r . T h e r e c o r d a ls o in d i­

fits to th e p u b lic in m e e t in g th e c o n v e n ie n c e an d

c a t e s th a t th e r e le v a n t m a r k e ts w o u ld b e a b le to

n e e d s o f th e c o m m u n it ie s to b e s e r v e d . A p p lic a n t

su p p o r t A p p l i c a n t ’s e x p a n s io n th r o u g h s u c h a lt e r ­

p r o p o s e s to m a k e c h a n g e s in th e s e r v ic e s o ffe r e d

n a tiv e m e t h o d s . M o r e o v e r , th e p r o s p e c ts fo r fu tu r e

b y B a n k , a n d t h e s e fa c to r s le n d su p p o r t fo r a p -




450

FEDERAL RESERVE BULLETIN □ JUNE 1974

p r o v a l o f th e a p p lic a t io n . H o w e v e r , th e r e is n o th ­

c a n t ’s sh a r e o f c o m m e r c ia l b a n k d e p o s it s in T e x a s

in g in th e re c o r d to in d ic a te th at t h e s e s e r v ic e s

b y 0 .2

are n o t a v a ila b le e ls e w h e r e in th e m a r k e ts o r that

f a c ts u n iq u e to th is a p p lic a tio n a n d w h e n c o n s i d ­

th e y c o u ld n o t b e a c h ie v e d b y le s s a n t ic o m p e t it iv e

e r e d in th e c o n t e x t o f a tren d to w a r d c o n c e n t r a t io n

o f o n e p e r c e n t a g e p o in t. In lig h t o f th e

m e a n s s u c h a s b y b r a n c h in g , d e n o v o e n tr y or

o f b a n k in g r e s o u r c e s in T e x a s , s u c h an in c r e a s e

B a n k a c t in g in d e p e n d e n t ly .

o f c o n c e n t r a t io n

T h e r e fo r e , w e c o n ­

c lu d e th a t th e p u b lic b e n e fits to b e d e r iv e d fro m
th e tr a n s a c tio n d o n o t o u t w e ig h th e s u b s ta n t ia lly
a d v e r s e c o m p e t it i v e e f f e c t s w e fin d in h e r e n t in th e
p r o p o s a l.

is

v ie w e d

by

th e

B oard

as

a

s lig h t ly a d v e r s e fa c to r .
B a n k is lo c a t e d in L u f k in , w h ic h is th e c o u n ty
sea t o f

A n g e lin a

C o u n ty ,

th e

r e le v a n t b a n k in g

m a r k e t. A p p l ic a n t ’s b a n k in g s u b s id ia r y c lo s e s t to

F o r t h e s e r e a s o n s , th e p r o p o s e d tr a n s a c tio n is

B a n k is lo c a t e d in H u m b le , T e x a s , 1 0 2 m ile s so u th

n o t in th e p u b lic in te r e s t , an d w e w o u ld d e n y th e

o f B a n k . A c c o r d in g l y , th e B o a r d c o n c lu d e s th at

a p p lic a tio n .

n o s ig n if ic a n t e x i s t in g c o m p e t it io n w o u ld b e e l i m ­
in a te d b e t w e e n B a n k a n d a n y o f A p p lic a n t ’s s u b ­

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

s id ia r y b a n k s u p o n c o n s u m m a t io n o f th is p r o p o s a l.

T E X A S , I N C .,

W h ile th e p r o p o s a l w o u ld h a v e n o a d v e r s e e f ­

H O U STO N , TEXAS
O rder D

e n y in g

A c q u is it io n

f e c t s o n e x i s t i n g c o m p e t i t io n , th e B o a r d is c o n ­
of

c e r n e d w ith

B ank

th e e f f e c t th e p r o p o s e d

a c q u is it io n

w o u ld h a v e u p o n p o te n t ia l c o m p e t it io n in th e S ta te

F ir st C it y B a n c o r p o r a tio n o f T e x a s , I n c ., H o u s ­

as a w h o l e , a n d m o r e p a r tic u la r ly w it h in th e A n ­

t o n , T e x a s , a b a n k h o ld in g c o m p a n y w it h in th e

g e lin a

m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t , h a s

p r e v io u s ly e x p r e s s e d its g e n e r a l c o n c e r n w ith th e

a p p lie d fo r th e B o a r d ’s a p p r o v a l u n d e r § 3 ( a ) ( 3 )

n a tu re o f th e d e v e l o p i n g b a n k in g str u c tu r e in th e

o f th e A c t ( 1 2 U . S . C .

S ta te o f T e x a s , in c lu d in g a t e n d e n c y fo r th e fiv e

1 8 4 2 ( a ) ( 3 ) ) to a c q u ir e all

C o u n ty

b a n k in g

m a r k e t.

The

Board

has

d ir e c t o r s ’ q u a lif y in g

la r g e s t b a n k in g o r g a n iz a t io n s to s e e k to a c q u ir e

s h a r e s ) o f th e s u c c e s s o r b y m e r g e r to T h e L u fk in

th e le a d in g b a n k s in th e S t a t e ’s s m a lle r m e t r o p o l­

o f th e

v o t in g

N a t io n a l

sh a res

Bank,

b a n k in to w h ic h

( le s s

L u f k in ,
B ank

T exas

( “ B a n k ” ).

is to b e m e r g e d

The

has no

itan a r e a s , t h e r e b y in c r e a s in g th e sh a r e o f S t a t e ­
w id e

d e p o s it s c o n t r o lle d b y t h e m , an d a ls o in ­

s ig n if ic a n c e e x c e p t a s a m e a n s to f a c ilit a t e th e

c r e a s in g th e s iz e d is p a r ity b e t w e e n t h o s e o r g a n i­

a c q u is it io n o f th e v o t in g sh a r e s o f B a n k . A c c o r d ­

z a t io n s a n d th e o th e r b a n k in g o r g a n iz a t io n s in th e

i n g l y , th e p r o p o s e d a c q u is it io n o f s h a r e s o f th e

S t a t e .2 T h e B o a r d r e g a r d s
e x t e n s io n o f th a t t e n d e n c y .

s u c c e s s o r o r g a n iz a t io n

is

tr ea ted

h e r e in

as

th e

p ro p o sa l as

W h ile th e e f f e c t o f th e p r o p o s a l o n

p r o p o s e d a c q u is it io n o f th e sh a r e s o f B a n k .
N o t i c e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity
fo r in te r e s t e d

th is

p e r s o n s to s u b m it c o m m e n t s an d

an

b a n k in g

c o m p e t it io n a n d c o n c e n t r a t io n in th e S ta te as a
w h o le is o f s o m e c o n c e r n to th e B o a r d , o f g r e a te r

v i e w s , h a s b e e n g iv e n in a c c o r d a n c e w ith § 3 ( b )

s ig n if ic a n c e is th e e f f e c t o f th e p r o p o s a l o n c o m ­

o f th e A c t . T h e tim e fo r filin g c o m m e n t s a n d v i e w s

p e t itio n w it h in th e r e le v a n t m a r k e t. A p p r o v a l o f

th e

th e p r e s e n t p r o p o s a l w o u ld e n a b le A p p lic a n t to

a p p lic a tio n a n d a ll c o m m e n t s r e c e iv e d in lig h t o f

e s t a b lis h it s e lf a s a s ig n if ic a n t c o m p e t it o r in th e

h a s e x p ir e d ,

a n d th e B o a r d

h a s c o n s id e r e d

th e f a c to r s se t fo r th in § 3 ( c ) o f th e A c t ( 1 2 U . S . C .

A n g e lin a C o u n ty b a n k in g m a r k e t th r o u g h th e a c ­

1 8 4 2 (c )).

q u is it io n o f th e la r g e s t o f fiv e b a n k s in a c o n c e n ­

A p p lic a n t is th e s e c o n d la r g e s t b a n k in g o r g a n i­

trated m a r k e t. B a n k h o ld s d e p o s it s a m o u n t in g to

z a t io n a n d b a n k h o ld in g c o m p a n y in T e x a s an d

4 9 p er c e n t o f m a r k e t d e p o s it s ;

c o n t r o ls 2 0 b a n k s w it h a g g r e g a t e d e p o s it s o f $ 2 .5

w h e n c o m b in e d w ith th e d e p o s it s o f th e s e c o n d

b i l l io n , r e p r e s e n t in g a p p r o x im a t e ly 7 . 2
of

th e

to ta l

d e p o s it s

in

c o m m e r c ia l

p er c e n t
banks

in

t h e s e d e p o s it s ,

la r g e s t b a n k in th e m a r k e t, c o n s t it u t e c o n tr o l o f
8 5 .7

p e r c e n t o f th e m a r k e t ’s to ta l c o m m e r c ia l

T e x a s . 1 A p p lic a n t a ls o h o ld s in te r e s ts o f b e t w e e n

b a n k d e p o s it s an d 7 9 .1

5 a n d le s s th a n 2 5 p e r c e n t in e ig h t o th e r b a n k s

to ta l IP C d e p o s it s in a c c o u n t s o f $ 1 0 0 , 0 0 0 o r l e s s . 3

( $ 1 7 8 m illio n

In v i e w o f A p p l ic a n t ’s p r e s e n t s ig n if ic a n t p o s it io n

in d e p o s i t s ) .

A c q u is it io n o f B a n k

p e r c e n t o f th e m a r k e t ’s

( $ 6 5 . 7 m illio n in d e p o s i t s ) w o u ld in c r e a s e A p p li ­

1All banking data, unless otherw ise indicated, are as o f June
3 0, 1973, and reflect bank holding com pany formations and
acquisitions approved through January 31, 1974.




2 Board action denying the application of First International
Bancshares, Inc., to acquire Citizens First National Bank of
Tyler (1974 F ederal R eserve B u ll e t in 43).
;1IPC deposit data are as of June 30, 1972.

451

LAW DEPARTMENT

in th e S ta t e , th e a b s o lu t e

s iz e o f B a n k a n d

its

tio n in b o th th e r e le v a n t m a r k e t a n d in th e S ta te

r e la t iv e p o s it io n in th e m a r k e t, th e p r o s p e c ts fo r

w h ic h are d e s c r ib e d h e r e in .

in c r e a s e d c o m p e t it io n a n d a d e c o n c e n t r a t io n o f th e
A n g e l i n a C o u n ty b a n k in g m a r k e t w o u ld b e d im in ­

tu re p r o s p e c ts o f A p p lic a n t , its s u b s id ia r y b a n k s ,

T h e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u ­

is h e d a s a r e s u lt o f th e c o n t e m p la t e d a c q u is it io n .

a n d B a n k a re r e g a r d e d a s g e n e r a lly s a t is f a c t o r y .

T h e p r o p o s a l w o u ld s o li d i f y B a n k ’s p r e s e n t s i g ­

M o r e o v e r , th e r e is n o e v i d e n c e in th e r e c o r d to

n ific a n t m a r k e t p o s it io n w h ile f o r e c l o s in g th e p o s ­

in d ic a te th a t th e b a n k in g

s ib ilit y o f B a n k e ith e r r e m a in in g a s ig n if ic a n t i n ­

m a r k e t are n o t b e in g m e t b y th e e x is t i n g in s t it u ­

d e p e n d e n t c o m p e tit o r o r b e c o m in g a ffilia te d w ith

tio n s . W h ile

o n e o f th e S t a t e ’s s m a lle r b a n k h o ld in g c o m p a n ie s .

n e e d s c o u ld r e s u lt fr o m A p p l ic a n t ’s e n tr y in to th e

so m e

n e e d s o f th e r e le v a n t

b e n e fits to c o n v e n ie n c e

an d

In th e c ir c u m s t a n c e s o f th is c a s e , th e B o a r d is

m a r k e t, s u c h b e n e fits c o u ld b e d e r iv e d fr o m e n tr y

u n c o n v in c e d th a t A p p li c a n t ’s e x p a n s io n m u s t ta k e

th r o u g h a v e h i c l e o th e r th a n th e m a r k e t ’s la r g e s t

th e fo r m o f a c q u ir in g s u c h a su b s ta n tia l c o m p e tit o r

b a n k in g o r g a n iz a t io n . A c c o r d i n g l y , a lt h o u g h c o n ­

a s B a n k . T h e r e are a lt e r n a tiv e m e a n s o f e n tr y in to

s id e r a tio n s r e la tin g to th e c o n v e n i e n c e a n d n e e d s

th e r e le v a n t m a r k e t th a t w o u ld b e m o r e c o n d u c i v e

o f th e c o m m u n it ie s to b e s e r v e d a re c o n s is t e n t w ith

to th e p r o m o tio n o f c o m p e t it io n . T h e fu tu r e e c o ­

a p p r o v a l,

n o m ic p r o s p e c ts o f th e a rea a p p e a r a ttr a c tiv e in

a d v e r s e c o m p e t it iv e e f f e c t s o f th e p r o p o s a l. It is

th e y

do

n o t o u t w e ig h

th e

s ig n if ic a n t

v i e w o f th e r e c e n t p o p u la t io n g r o w t h o f th e area

th e B o a r d ’s j u d g m e n t th a t o n th e b a s is o f th e e n tir e

a s w e ll a s th e d iv e r s if ie d n a tu re o f its e c o n o m y .4

re c o r d c o n s u m m a t io n o f th e p r o p o s e d a c q u is it io n

In th is e c o n o m i c c lim a t e d e n o v o e n t r y , o r a c q u i­

w o u ld n o t b e in th e p u b lic in te r e s t a n d th at th e

s it io n o f o n e o f th e s m a lle r b a n k s in th e m a r k e t,

a p p lic a tio n s h o u ld b e a n d h e r e b y is d e n ie d .

e a c h o f w h ic h is an in d e p e n d e n t b a n k in g o r g a n i­
z a t io n ,

w o u ld

b e c le a r ly

p r e f e r a b le

a lt e r n a tiv e s

B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e
M a y 1, 1 9 7 4 .

fr o m a c o m p e t it iv e s ta n d p o in t to th e in sta n t p r o ­
p o s a l. M o r e o v e r , A p p lic a n t p o s s e s s e s th e n e c e s ­
sa r y r e s o u r c e s fo r m e a n in g f u l e n tr y in to th e m a rk et
th r o u g h s u c h a lte r n a tiv e m e a n s .
I n tr o d u c tio n o f A p p lic a n t to
C o u n ty

m arket

m e th o d s

w o u ld

th r o u g h
not

e ith e r

o n ly

th e
of

in c r e a s e

V o tin g f o r th is a c tio n : C h a ir m a n B u rn s a n d G o v e r n o r s
B r im m e r , B u c h e r , H o lla n d , a n d W a llic h . V o tin g a g a in s t th is
a c tio n : G o v e r n o r S h e e h a n . A b s e n t a n d n o t v o tin g : G o v e r n o r
M itc h e ll.

A n g e lin a
th e

above

( S ig n e d ) C h e s t e r B . F e l d b e r g ,
[s e a l]

S e c r e t a r y o f th e B o a r d .

c o m p e t it io n

th e r e in b y in tr o d u c in g a n e w a n d a g g r e s s i v e c o m ­
D is s e n t in g S t a t e m e n t

p e tito r in to th e m a r k e t, b u t w o u ld a ls o h a v e th e

of

G overnor S h eeh an

t e n d e n c y o f r e d u c in g th e c o n c e n t r a t io n o f b a n k in g
r e s o u r c e s in th e m a r k e t w h ile p r e s e r v in g B a n k a s
a v ia b le c o m p e t i t i v e f o r c e in th e m a r k e t. In a d d i­
t io n , th e p o s s i b il i t y w o u ld b e p r e s e r v e d th at B a n k
m ay

b ecom e

a ffilia te d

w it h

one

o f th e

S t a t e ’s

s m a lle r b a n k h o ld in g c o m p a n ie s — n o t an u n lik e ly
p r o s p e c t in v i e w o f B a n k ’s a t tr a c tiv e n e s s fo r a c ­
q u is it io n d u e in p a rt to its m a r k e t p o s it io n . T h e
B oard v ie w s

th is p r o p o s a l a s e v id e n c e b o th o f

A p p lic a n t ’s in te n t io n

to

expand

t h r o u g h o u t th e

S ta te a n d to a c q u ir e b a n k s w ith a s ig n if ic a n t p r e s ­
e n c e in t h o s e m a r k e ts it s e e k s to e n te r . H o w e v e r ,
e n tr y in to t h is m a r k e t th r o u g h a lt e r n a tiv e m e a n s ,
d e n o v o o r a c q u is it io n o f o n e o f th e s m a lle r b a n k s ,

w o u ld

be

c o n s is t e n t

w it h

A p p li c a n t ’s

a p p a ren t

in te n tio n to e x p a n d t h r o u g h o u t th e S ta te w h il e n o t
h a v in g th e s ig n if ic a n t a d v e r s e e f f e c t s o n c o m p e t i ­

I d is s e n t fr o m th e m a j o r it y ’s a c tio n d e n y in g th e
s u b j e c t a p p lic a tio n . In d e n y in g t h is a p p lic a tio n th e
m a jo r ity h a s r e lie d , in p a rt, o n its p r e v io u s ly s ta te d
concern

(ex p ressed

in th e

r e c e n t d e n ia l o f

a p p lic a tio n b y F ir st I n te r n a tio n a l
a c q u ir e th e la r g e s t b a n k

th e

B a n c s h a r e s to

in T y le r ) o v e r th e

in ­

c r e a s in g s iz e d is p a r it y a m o n g T e x a s b a n k h o ld in g
c o m p a n ie s . In m y o p in i o n , th e p r e s e n t p r o p o s a l
w o u ld h a v e n o s u c h a d v e r s e e f f e c t s o n c o m p e t it io n
e it h e r in T e x a s o r in th e A n g e lin a C o u n ty b a n k in g
m a r k e t.
It is tru e th a t c o n s u m m a t io n o f th is p r o p o s a l
w o u ld g i v e A p p lic a n t c o n t r o l o v e r th e la r g e s t b a n k
in th e A n g e lin a m a r k e t; h o w e v e r , th e s e c o n d la r g ­
e s t b a n k in th e m a r k e t is n e a r ly a s la r g e a s B a n k ,
as e v i d e n c e d b y th e fo r m e r b a n k ’s c o n t r o l o f 3 7
p er c e n t o f m a r k e t d e p o s i t s . T h u s , a c q u is it io n o f
B a n k w o u ld n o t r e s u lt in A p p l i c a n t ’s a c q u ir in g a
d o m in a n t p o s it io n in th e m a r k e t, n o r r a is e s ig n if i­

4Between 1960 and 1970 population in the market increased
24 per cent as compared to a Statewide increase of 16.9 per
cent over the same period.




c a n t b a rriers to e n tr y to b a n k h o ld in g c o m p a n ie s
o u t s id e th is

m a r k e t.

In

fa c t,

each

of

th e

fo u r

452

FEDERAL RESERVE BULLETIN □ JUNE 1974

r e m a in in g b a n k s in th e m a rk et is in d e p e n d e n t an d

N a t io n a l

c o u ld

p ro p o sed n ew bank.

s e r v e a s an e n tr y v e h i c l e

fo r o n e o f th e

B ank,

J u p ite r ,

F lo r id a

( “ B a n k ” ),

a

N o t ic e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity

S t a t e ’s o th e r b a n k h o ld in g c o m p a n ie s .
T h e m a jo r ity c o n t e n d s th at th e m a r k e t is a ttr a c ­

fo r in te r e s te d

p e r s o n s to s u b m it c o m m e n t s

an d

t iv e fo r d e n o v o e n tr y . I d is a g r e e . A lt h o u g h th e

v i e w s , h a s b e e n g iv e n in a c c o r d a n c e w it h § 3 ( b )

r e c o r d d i s c l o s e s a s ig n if ic a n t p e r c e n t a g e g r o w th

o f th e A c t . T h e t im e fo r filin g c o m m e n t s a n d v ie w s

in p o p u la t io n d u r in g th e 1 9 6 0 ’s , A n g e lin a C o u n ­

h a s e x p ir e d , a n d th e a p p lic a tio n a n d a ll c o m m e n t s

t y ’s a c tu a l p o p u la t io n in c r e a s e d b y o n ly s lig h t ly

r e c e iv e d

m o r e th a n 1 0 ,0 0 0 in h a b ita n ts . M o r e o v e r , d e s p it e

f a c to r s s e t fo r th in § 3 ( c ) o f th e A c t ( 1 2 U . S . C .

th is p o p u la t io n g r o w t h , th e m a r k e t ’s r a tio o f p o p ­

1 8 4 2 (c )).

have

been

c o n s id e r e d

in

lig h t o f

th e

u la tio n to b a n k in g o f fic e w a s o n ly s lig h t ly m o r e

A p p lic a n t c o n t r o ls th r e e b a n k s w it h a g g r e g a t e

th a n th e S t a t e w id e a v e r a g e . In a d d it io n , th e r e is

d e p o s it s o f $ 1 8 9 . 5 m i ll io n , r e p r e s e n t in g a p p r o x i­

n o in d ic a tio n th at th e p a st g r o w th rate o f th e a rea

m a te ly 1 p er c e n t o f to ta l d e p o s i t s in c o m m e r c ia l

w ill c o n t in u e

b a n k s in F lo r id a .1 In a d d it io n ,

in to th e fu tu r e .

In v i e w

o f su ch

A p p lic a n t o w n s

c ir c u m s t a n c e s , a s w e l l a s th e f a c t th a t th e m a r k e t

b etw een

is n o t a n im p o r ta n t u rb a n c e n te r in th e S ta t e , th e

o f s ix o th e r b a n k s ( “ a ffilia te d b a n k s ” ) , w it h a g ­

a ttr a c tiv e n e s s o f th e m a r k e t fo r d e n o v o e n tr y c a n

g r e g a t e d e p o s it s o f a p p r o x im a t e ly $ 7 0 . 8 m illi o n ,

b e r e g a r d e d a s o n ly m a r g in a l at b e s t .

15 p e r c e n t a n d 2 4 . 9 p e r c e n t o f e a c h

i n c lu d in g t w o b a n k s w h ic h a re lo c a t e d in th e W e s t

W ith r e s p e c t to th e e f f e c t o f th e p r o p o s a l o n

P a lm B e a c h C o u n ty b a n k in g m a r k e t. T h r o u g h its

c o m p e t it io n in th e S ta te o f T e x a s , I c a n n o t a g r e e

s u b s id ia r y an d a ffilia te d

w it h th e m a j o r it y ’s a n a ly s is . A s I h a v e p r e v io u s ly

a p p r o x im a t e ly 1 9 p e r c e n t o f th e to ta l d e p o s it s in

in d ic a te d in m y d is s e n t in th e T y le r c a s e , I a m

c o m m e r c ia l b a n k s in th e W e s t P a lm B e a c h C o u n ty

n ot c o n v in c e d

b a n k in g m a r k e t2 a n d ra n k s t h e r e b y a s th e la r g e s t

seco n d a r y

th a t th e a c q u is it io n

S M S A ’s b y o n e

of

of

banks

th e la r g e r

in

bank

b a n k s , A p p lic a n t h o ld s

b a n k in g o r g a n iz a t io n in th e m a r k e t. In th e n o r th ­

h o ld in g c o m p a n ie s w o u ld a d v e r s e ly a f fe c t c o m p e ­

e r n m o s t part o f th e m a r k e t, w h ic h

titio n in T e x a s . 1 F u r th e r m o r e , I b e l i e v e a p p r o v a l

J u p ite r a r e a , A p p lic a n t ’s p o s it io n a p p e a r s to b e

in t h is c a s e w o u ld te n d to f o s t e r th e e c o n o m i c

s u b s ta n t ia l.

in c lu d e s th e

d e v e lo p m e n t o f T e x a s , a s w e ll a s th e S o u t h w e s t

B a n k w o u ld b e lo c a t e d in J u p iter in th e W e s t

r e g io n o f th e U n ite d S t a t e s , b y e n c o u r a g in g th e

P a lm B e a c h C o u n ty b a n k in g m a r k e t, w h e r e A p ­

d e v e lo p m e n t o f ‘l o c a l ’ r e g io n a l in s t itu t io n s c a p a ­

p lic a n t is p r e s e n tly r e p r e s e n t e d b y th r e e s u b s id ia r y

b le o f s e r v in g th e g r o w in g d o m e s t ic a n d in te r n a ­

b a n k s a n d t w o a ffilia te d b a n k s . A p p l i c a n t ’s c lo s e s t

t io n a l n e e d s o f T e x a s c o r p o r a t io n s n o w b e in g
s e r v e d b y o u t - o f - S t a t e b a n k s . I f e e l th a t th e c o n ­

b a n k in g s u b s id ia r y is lo c a t e d

1 .7 m ile s n o rth o f

th e p r o p o s e d s it e o f B a n k a n d o n e o f A p p lic a n t ’s

o r g a n i­

a ffilia te d b a n k s is lo c a t e d a b o u t s ix m ile s so u th

z a t io n s is n e c e s s a r y if th e y are to e f f e c t i v e l y c o m ­

o f th e p r o p o s e d s it e o f B a n k . T h e r e are n o b a n k s

t in u e d

ra p id

g ro w th

of

T exas

b a n k in g

p e t e in T e x a s , th e S o u t h w e s t , a n d th e n a t io n ’s

l o c a t e d in th e a r e a b e t w e e n t h e s e t w o b a n k s a n d

m a jo r m o n e y m a r k e ts .

th e p r o p o s e d s it e o f B a n k , a n d r e s id e n ts o f J u p ite r

F o r th e r e a s o n s c it e d h e r e in , I w o u ld a p p r o v e

m u s t p a s s b y o n e o f A p p li c a n t ’s b a n k s in o r d e r
to r e a c h th e n e a r e s t u n a ffilia te d c o m p e t in g b a n k .

th is a p p lic a tio n .

M o r e o v e r , th e s e r v ic e a r e a o f B a n k w o u ld c o m ­
G E N E R A L F I N A N C I A L S Y S T E M S , I N C .,

p le t e ly o v e r la p th e s e r v i c e a r e a s o f t h e s e o th e r t w o

R IV IE R A B E A C H , F L O R ID A

b a n k s , a n d A p p lic a n t ’s b a n k s w o u ld b e th e m o s t
c o n v e n ie n t

O rder D

e n y in g

A c q u is it io n

of

B ank

so u rce

of

b a n k in g

s e r v ic e s

to

a rea

r e s id e n ts . S in c e th is a c q u is it io n i n v o l v e s th e e s ­

G e n e r a l F in a n c ia l S y s t e m s , I n c . , R iv ie r a B e a c h ,

t a b lis h m e n t o f a p r o p o s e d n e w b a n k , n o e x i s t i n g

th e

c o m p e t it io n w o u ld b e e lim in a t e d a n d n o im m e d i ­

m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t , h a s

a te in c r e a s e in c o n c e n t r a t io n o f b a n k in g r e s o u r c e s

a p p lie d fo r th e B o a r d ’s a p p r o v a l u n d e r § 3 ( a ) ( 3 )

w o u ld r e s u lt in a n y r e le v a n t a r e a . H o w e v e r , a s

o f th e A c t ( 1 2 U . S . C .

th e p r o p o s a l a p p e a r s to p r e e m p t a lo c a t io n w h ic h

F lo r id a ,

a

bank

h o ld in g

com pany

w it h in

1 8 4 2 ( a ) ( 3 ) ) to a c q u ir e 5 5

p e r c e n t o r m o r e o f th e v o t in g s h a r e s o f J u p ite r

*In this case the market has not even reached a sufficient
size to be classified as a secondary SMSA.




b a n k in g data are as of June 30, 1973, adjusted to reflect
holding company acquisitions and formations approved by the
Board through March 31, 1974.
2 Approximated by the upper two-thirds of Palm Beach
County.

LAW DEPARTMENT

453

In th e in sta n t c a s e ,

w o u ld b e a ttr a c tiv e to c o m p e t in g b a n k in g o r g a n i­

th e r e c o r d d i s c l o s e s

a n o th e r b a n k in g o r g a n iz a t io n

h a s a p p lie d

th a t
fo r a

z a t io n s n o t r e p r e s e n te d in th e a r e a , a p p r o v a l o f
th e a p p lic a tio n w o u ld f o r e c l o s e th e p r o b a b le d e ­

b a n k ch a r te r in th e J u p ite r a r e a . It a p p e a r s th at

v e lo p m e n t o f c o m p e t it io n in th e fu tu r e a n d w o u ld

J u p ite r is a g r o w in g a rea w it h f a v o r a b le p r o s p e c ts

e n tr e n c h A p p lic a n t ’s a lr e a d y s ig n if ic a n t c o m p e t i ­

fo r th e fu tu r e . H o w e v e r , a s o f J u n e , 1 9 7 2 , th e r e

t iv e p o s it io n in th e a r e a . B y p r e e m p tin g B a n k ’s

w e r e m o r e b a n k in g o f f ic e s p e r c a p ita in th e a rea

s i t e , th e p r o p o s a l w o u ld e lim in a t e th e lik e lih o o d

th a n o n a S t a t e w id e b a s is a n d , th r o u g h th e a d d itio n

th a t a n o th e r b a n k in g o r g a n iz a t io n w o u ld e s ta b lis h

o f B a n k , th e p o p u la t io n p e r b a n k in g o f fic e r a tio

a d e n o v o b a n k in th e J u p ite r a r e a , w h ic h w o u ld

w o u ld

s e r v e to in c r e a s e c o m p e t it io n b y in tr o d u c in g an

c h a r a c t e r is tic s , it is n o te d th at e n tr y in to a c o m ­

be

d ecreased

fu r th e r .

In

lig h t

of

th o s e

a lt e r n a tiv e s o u r c e o f b a n k in g s e r v i c e s to A p p l i­

m e r c ia l b a n k in g m a r k e t is s o m e w h a t r e s tr ic te d ,

c a n t ’s s u b s id ia r y a n d a ffilia te d b a n k s n o w in th e

a n d c h a r te r in g a u th o r itie s in a c t in g u p o n an a p p li­

area.

c a t io n fo r a n e w

Such

an

a lte r n a tiv e

w o u ld

a ls o

have

th e

b a n k c h a r te r c o n s id e r w h e t h e r

sa lu ta r y c o m p e t it iv e e f f e c t o f p r e s e r v in g th e p o s ­

th e r e are s u ffic ie n t b a n k in g a lt e r n a tiv e s fo r a rea

s ib ilit y o f th e a r e a ’s b a n k in g r e s o u r c e s b e c o m in g

r e s id e n ts . T h u s , a p p r o v a l o f th e p r o p o s a l h e r e in

le s s c o n c e n tr a te d .

w o u ld n e c e s s a r ily te n d to p e r p e tu a te A p p l ic a n t ’s

T h e U . S . S u p r e m e C o u r t, in a n o th e r c o n t e x t ,
h a s n o te d th a t “ i f c o n c e n t r a t io n is a lr e a d y g r e a t,

d o m in a n c e in th e J u p ite r a r e a a n d

m ay presen t

s ig n if ic a n t o b s t a c le s to th e e n tr y in to th e a r e a b y

th e im p o r ta n c e o f . . . p r e s e r v in g th e p o s s i b ili t y

an a lte r n a tiv e b a n k in g o r g a n iz a t io n . O n th e b a s is

of

o f th e r e c o r d , it a p p e a r s p r o b a b le th a t c o n s u m m a ­

ev en tu a l

d e c o n c e n t r a t io n

g r e a t . ” 3 T h is

p r in c ip le

is

is

c o r r e s p o n d in g ly

p a r tic u la r ly

r e le v a n t

tio n

o f A p p l ic a n t ’s p r o p o s a l
le s s

w o u ld

c o m p e t i t iv e

r e s u lt

and

in a

w h e n c o n s id e r in g th e p o s s ib le d e c o n c e n t r a t io n o f

s u b s ta n t ia lly

s ig n if ic a n tly

an a rea s u c h a s J u p ite r . G iv e n th e p r e s e n t c o m p e t ­

m o r e c o n c e n t r a t e d b a n k in g m a r k e t in th e J u p ite r

i t iv e str u c tu r e in th e J u p ite r a r e a , th e e f f e c t o f th e

a rea th a n w o u ld li k e ly d e v e l o p if th e p r o p o s a l w e r e

e lim in a t io n o f th e p o s s i b ili t y o f d e c o n c e n t r a t io n

n o t c o n s u m m a t e d . A c c o r d in g l y , th e B o a r d is p r e ­

a s a r e s u lt o f A p p l i c a n t ’s d e n o v o e n tr y m a y b e

c lu d e d fr o m a p p r o v in g th e a p p lic a tio n u n le s s s u c h

to s u b s ta n t ia lly le s s e n c o m p e t it io n . T h e B o a r d h a s

a n t ic o m p e t it iv e e f f e c t s a re c le a r ly o u t w e ig h e d in

p r e v io u s ly d e n ie d a p p lic a t io n s in w h ic h

th e

a bank

p u b lic

in te r e st

by

th e

p r o p o s a l ’s

e ffe c t

in

h o ld in g c o m p a n y s o u g h t to a c q u ir e a d e n o v o b a n k

m e e t in g th e c o n v e n ie n c e a n d n e e d s o f th e c o m ­

w h e r e th e b a n k h o ld in g c o m p a n y w a s a lr e a d y th e

m u n it y to b e s e r v e d .

d o m in a n t b a n k in g o r g a n iz a t io n in th e a rea o f th e

T h e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u ­

p r o p o s e d n e w b a n k .4 E v e n in a c a s e w h e r e a real

tu re

n e e d fo r a n e w

b an k s appear

bank

has been

c le a r ly

dem on­

p r o s p e c ts

of

A p p lic a n t

g e n e r a lly

and

its

s a t is f a c t o r y

s u b s id ia r y
in

v ie w

of

s t r a t e d ,5 th e B o a r d h a s ta k e n s u c h a c t io n . In o n e

A p p lic a n t ’s c o m m it m e n t to in je c t a d d itio n a l e q u ity

s u c h c a s e , th e B o a r d n o te d :

c a p ita l in to its th r e e s u b s id ia r y b a n k s .

D e te rm in a tio n o f th e c o m p e titiv e e f fe c ts o f a p r o p o s e d
h o ld in g c o m p a n y a c q u is itio n , w h e th e r th e p ro p o s a l is o n e to
a c q u ir e a n e x is tin g b a n k o r a n e w b a n k to b e o r g a n iz e d u n d e r
th e h o ld in g c o m p a n y ’s d ir e c tio n , tu rn s o n th e is s u e o f w h e th e r
c o n s u m m a tio n o f th e p ro p o s a l w ill r e s u lt in a s u b s ta n tia lly le ss
c o m p e titiv e b a n k in g m a r k e t th a n is lik e ly to e x is t o r d e v e lo p
in th e e v e n t th a t th e p r o p o s a l is n o t c o n s u m m a te d . In th e
p r e s e n t c a s e , c o n s u m m a tio n o f th e p ro p o s a l w o u ld r e s u lt in
e x p a n s io n o f th e d o m in a n t b a n k in g o r g a n iz a tio n in M ilw a u k e e
C o u n ty a n d w o u ld te n d to p r e c lu d e e n try w h ic h c o u ld le ss e n
th e e x te n t o f A p p lic a n t’s d o m in a n c e in th e c o u n ty , a n d p r o v id e
c o m p e titio n to o ffices o f A p p lic a n t’s p r e s e n t s u b s id ia rie s w h ic h
s e r v e th e im m e d ia te a r e a .

a p r o p o s e d n e w b a n k , h a s n o fin a n c ia l o r o p e r a t in g

B a n k , as

h is to r y ; h o w e v e r , its p r o s p e c ts a s a s u b s id ia r y o f
A p p lic a n t

appear

f a v o r a b le .

T h e r e fo r e ,

c o n s id ­

e r a t io n s r e la tin g to th e b a n k in g fa c to r s a re c o n ­
s is te n t w ith

a p p r o v a l o f th e a p p lic a t io n .

W h ile

th e r e is n o e v i d e n c e in th e r e c o r d to in d ic a te th at
th e m a jo r b a n k in g n e e d s o f th e c o m m u n it y a re n o t
b e in g a d e q u a te ly s e r v e d , B a n k w o u ld p r o v id e an
a d d itio n a l s o u r c e o f fu ll b a n k in g s e r v i c e s . H o w ­
ever,

su c h

b e n e fits

w o u ld

b e s im ila r ly

d e r iv e d

fr o m a n o th e r o r g a n iz a t io n e s t a b lis h in g a n e w b a n k
in th e a r e a , an d th e B o a r d d o e s n o t r e g a r d th is
s lig h t in c r e a s e in c o n v e n ie n c e f lo w in g fr o m A p ­
3 U nited S ta tes v. P h iladelphia N a tio n a l Bank, 374, U.S.
321, 365, n.42 (1963).
4Application of First at Orlando Corporation, Orlando,
Florida, to acquire Citrus First National Bank of Leesburg,
Florida (1973 F ederal R ese rv e B u lle t in 302).
5Application of First Wisconsin Bankshares Corporation to
acquire shares o f proposed First Wisconsin National Bank of
Greenfield (54 F ederal R eserve B u l le t i n 1024 (1968)).
fiId. at 1026-1027.




p l ic a n t ’s

p rop osal

as

o u t w e ig h in g

th e

ad verse

c o m p e t it iv e e f f e c t s in h e r e n t in th e p r o p o s e d tr a n s­
a c t io n .
O n th e b a s is o f a ll r e le v a n t f a c t s in th e r e c o r d ,
an d in lig h t o f th e fa c to r s s e t fo r th in § 3 ( c ) o f
th e

A c t,

it

is

th e

B o a r d ’s

ju d g m en t

th a t

th e

p r o p o s e d a c q u is it io n w o u ld h a v e a d v e r s e e f f e c t s

FEDERAL RESERVE BULLETIN □ JUNE 1974

454

o n c o m p e t i t i o n , w it h o u t a n y s ig n if ic a n t o f f s e t t in g

s ta n d a r d , w e b e l i e v e th e B o a r d s h o u ld n o t d e n y

b e n e fits u n d e r c o n s id e r a t io n s r e la tin g to th e b a n k ­

an a c q u is it io n o f a d e n o v o b a n k u n le s s a t h o r o u g h

in g fa c to r s o r th e c o n v e n i e n c e a n d n e e d s o f th e

e x a m in a t io n o f th e r e c o r d c le a r ly d e m o n s t r a te s th at

c o m m u n it ie s to b e s e r v e d . A c c o r d i n g ly , th e B o a r d

a p p r o v a l w o u ld r e s u lt in a s u b s ta n t ia lly le s s c o m ­

c o n c lu d e s

p e t it iv e b a n k in g m a r k e t. In o u r v i e w , th e r e c o r d

th at

c o n s u m m a t io n

of

th e

p ro p o sa l

w o u ld n o t b e in th e p u b lic in te r e st a n d th at th e

in t h is c a s e d o e s n o t c le a r ly su p p o r t d e n ia l o n s u c h

a p p lic a tio n

grou n d s.

s h o u ld

b e,

and

th e

a p p lic a tio n

is

The

h e r e b y d e n ie d .
B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t iv e
M ay 2 4 , 1974.
V o tin g fo r th is a c tio n : V ic e C h a irm a n M itc h e ll a n d G o v e r ­
n o rs B r im m e r, S h e e h a n , a n d H o lla n d . V o tin g a g a in s t th is
a c tio n : G o v e r n o r s B u c h e r a n d W a llic h . A b s e n t a n d n o t v o tin g :
C h a ir m a n B u rn s .

( S ig n e d ) C h e s t e r B . F e l d b e r g ,
[s e a l]

S e c r e ta r y o f th e B o a r d .

W est

P a lm

C o u n ty

b a n k in g

m arket

h a s o v e r th ir ty b a n k in g o f f ic e s , s e v e r a l o f w h ic h
a re s u b s id ia r y

b a n k s o f F lo r id a ’s la r g e s t m u lt i­

bank

c o m p a n ie s .

h o ld in g

The

secon d ,

th ir d ,

f o u r th , fifth a n d s ix t h la r g e s t m u lti-b a n k h o ld in g
c o m p a n ie s in th e S ta te e a c h c o n t r o l b e t w e e n 6 a n d
8 p e r c e n t o f th e to ta l m a r k e t d e p o s it s an d th r e e
o th e r b a n k in g o r g a n iz a t io n s

in th e m a rk et e a c h

c o n tr o l b e t w e e n 8 a n d 13 p e r c e n t o f th e d e p o s i t s .
T h u s , th e r e c o r d d o e s n o t su p p o r t th e c o n c lu s io n
th a t th e m a r k e t is h ig h ly c o n c e n t r a t e d .
W e r e c o g n iz e th at in c e r ta in c ir c u m s t a n c e s th e

D

is s e n t in g

G overnors B

Statem ent

ucher

an d W

B o a r d h a s d e n ie d a b a n k h o ld in g c o m p a n y ’s a c ­

of

q u is it io n o f a d e n o v o b a n k ; h o w e v e r , s u c h

a l l ic h

in ­

s t a n c e s u s u a lly in v o l v e d e it h e r o n e o f th e la r g e s t
In d e n y in g A p p l ic a n t ’s a c q u is it io n o f a d e n o v o

b a n k h o ld in g c o m p a n ie s in a S t a t e 1 o r th e la r g e s t

b a n k , th e e f f e c t o f th e m a jo r it y ’s d e c i s io n h a s b e e n

b a n k in g

o r g a n iz a t io n

in

to d e n y r e s id e n ts o f th e J u p iter a rea an a d d itio n a l

b a n k in g

m a r k e t ,2 o r

th e

c o n v e n i e n t s o u r c e o f b a n k in g s e r v i c e s . T h e m a ­

p r o p o s a l w o u ld

jo r ity

p o s it io n o f a s m a lle r b a n k in a m a r k e t.3 In th e

c o n c lu d e s

w o u ld

th at

s u b s ta n t ia lly

th e

p ro p o sa l

le s s e n c o m p e t it io n

approval

of

a n d that

a

h ig h ly

B oard

co n cen tra ted

fo u n d

th at th e

a d v e r s e ly a f fe c t th e c o m p e t it iv e

in sta n t c a s e , th e m a r k e t is n o t a s h ig h ly c o n c e n ­

s u c h a n t ic o m p e t it iv e e f f e c t s a re n o t c le a r ly o u t ­

tra ted a s in th e p r e v io u s c a s e s a n d

w e i g h e d in th e p u b lic in te r e st b y th e p r o p o s a l’s

p o s it io n

e f f e c t in m e e t in g th e c o n v e n ie n c e a n d n e e d s o f

c o m p a r a b le . N o r d o e s it a p p e a r fr o m th e r e c o r d

th e c o m m u n it y to b e s e r v e d . W e d is a g r e e w ith

th at a n y c o m p e t in g b a n k w o u ld b e a d v e r s e ly a f ­
fected

th is c o n c l u s i o n .

in th e

by

m arket and

c o n s u m m a t io n

in th e

of

th is

A p p lic a n t ’s
S ta te is n o t

p r o p o s a l.

A l­

T h e B a n k H o ld in g C o m p a n y A c t r e q u ir e s th e

t h o u g h A p p lic a n t m a y o f fe r th e m o s t c o n v e n ie n t

B o a r d to d e n y an a p p lic a tio n to a c q u ir e a b a n k

b a n k in g o f f ic e s to r e s id e n ts o f th e J u p ite r a r e a , w e

if ( 1 ) th e p r o p o s a l w o u ld r e s u lt in a m o n o p o ly

can not

o r w o u ld b e in fu r th e r a n c e o f a n y c o m b in a t io n or

d o m in a n t

c o n s p ir a c y to m o n o p o li z e o r a tte m p t to m o n o p o ­

th r o u g h

li z e th e b u s in e s s o f b a n k in g in a n y p art o f th e

M o r e o v e r , s in c e A p p lic a n t , th e tw e n ty - f ir s t la r g e s t

U n ite d S ta te s ; o r ( 2 ) if th e e f f e c t o f th e p r o p o s a l

b a n k h o ld in g c o m p a n y in F lo r id a , m u s t c o m p e t e

c o n c lu d e

th a t

c o m p e t it i v e

th e

A p p lic a n t

c o u ld

a d v a n ta g e

e s t a b lis h m e n t o f

a de

in

a ssert
th a t

novo

a

area
bank.

in a n y s e c t io n o f th e c o u n tr y m a y b e s u b s ta n t ia lly

in t h is m a rk et w ith s o m e o f th e S t a t e ’s la r g e s t b a n k

to le s s e n c o m p e t i t i o n , o r to te n d to c r e a t e a m o ­

h o ld in g c o m p a n i e s , w e b e l i e v e th a t a p p r o v a l o f

n o p o ly ,

or

in

any

o th e r

m anner

w o u ld

be

in

th is tr a n s a c tio n w o u ld n o t r e s u lt in a s u b s ta n tia l

restr a in t o f tr a d e , u n le s s th e B o a r d fin d s th a t th e

l e s s e n i n g o f c o m p e t it io n .

a n t ic o m p e t it iv e e f f e c t s o f th e p r o p o s e d tr a n s a c tio n

F o r t h e s e r e a s o n s , w e w o u ld a p p r o v e th e a p p li­
c a t io n .

a re c le a r ly o u t w e ig h e d in th e p u b lic in te r e st b y
th e p r o b a b le e f f e c t o f th e tr a n sa c tio n in m e e t in g
th e c o n v e n i e n c e a n d n e e d s o f th e c o m m u n it y to
b e s e r v e d . A s th e m a jo r ity r e c o g n i z e s , a d e t e r m i­
n a tio n o f th e c o m p e t i t iv e e f f e c t s o f a p r o p o s a l to
a c q u ir e an a d d itio n a l b a n k tu r n s o n th e q u e s t io n
o f w h e t h e r c o n s u m m a t io n

o f th e

p r o p o s a l w ill

r e s u lt in a s u b s ta n t ia lly le s s c o m p e t i t iv e b a n k in g
m a r k e t th a n is l ik e ly to d e v e l o p in th e e v e n t th at
th e p r o p o s a l is n o t c o n s u m m a t e d . In a p p ly in g th is




’ Application of First Wisconsin Bankshares Corporation to
acquire shares of proposed First Wisconsin National Bank of
Greenfield (54 F ederal R ese rv e B u l l e t i n 1024 (1968)).
2Application of Security Financial Services, Inc., to acquire
proposed Security West Side Bank (56 F ederal R eserve B u l ­
l e t i n 834 (1970)).
3Application of First at Orlando Corporation to acquire
proposed Citrus First National of Leesburg (59 F ederal R eserve
B u l l e t i n 302 (1973)).

455

LAW DEPARTMENT

o f e x i s t in g

U N I T E D F I R S T F L O R I D A B A N K S , I N C .,

c o m p e t it io n

b e tw e e n

A p p lic a n t

and

B a n k w o u ld b e e lim in a t e d b y th e p r o p o s e d a c q u i­

T A M P A , F L O R ID A

s it io n .
O r d e r A p p r o v in g A c q u is it io n

M oreover,

it d o e s

not

appear

th a t

th e

p r o p o s e d a c q u is it io n w o u ld h a v e a n y a d v e r s e e f ­

B ank

of

f e c t o n p o te n t ia l c o m p e t it io n in v i e w o f th e d i s ­
U n it e d

F ir st

F lo r id a ,

a

F lo r id a

bank

B an k s,

h o ld in g

I n c .,

com pany

T am pa,

w it h in

th e

m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t , h a s
a p p lie d fo r th e B o a r d ’s a p p r o v a l u n d e r § 3 ( a ) ( 3 )
o f th e A c t ( 1 2 U . S . C .

1 8 4 2 ( a ) ( 3 ) ) to a c q u ir e 9 0

p e r c e n t o r m o r e o f th e

v o t in g

sh a r e s o f F ir st

N a t io n a l B a n k o f M e r r itt I s la n d , M e r r itt I s la n d ,
F lo r id a ( “ B a n k ” ).
p e r s o n s to s u b m it c o m m e n t s

and

v i e w s , h a s b e e n g iv e n in a c c o r d a n c e w ith § 3 ( b )
o f th e A c t . T h e tim e fo r filin g c o m m e n t s a n d v i e w s
h a s e x p ir e d , a n d th e a p p lic a tio n a n d a ll c o m m e n t s
r e c e iv e d

have

b een

c o n s id e r e d

f a c to r s s e t fo r th in s e c t io n

in

lig h t o f

th e

3 ( c ) o f th e A c t ( 1 2

U .S .C . 1 8 4 2 (c )).
z a t io n in F lo r id a , c o n t r o ls 4 3 b a n k s w ith a g g r e g a t e
d e p o s it s o f $ 1 . 4 b i l l io n , r e p r e s e n t in g 6 . 7 p er c e n t
o f to ta l d e p o s it s in c o m m e r c ia l b a n k s in th e S t a t e .1
T h e a c q u is it io n o f

B a n k w o u ld

in c r e a s e

A p p li­

c a n t ’s sh a r e o f d e p o s it s b y le s s th a n o n e - te n t h o f
o n e p e r c e n t a g e p o in t a n d w o u ld n o t c h a n g e A p ­
p l i c a n t ’s ra n k a m o n g S ta te b a n k in g o r g a n iz a t io n s
s ig n if ic a n t ly

in c r e a s e

th e

c o n c e n t r a t io n

b a n k in g r e s o u r c e s in th e S ta t e .
B a n k ( d e p o s it s o f $ 2 6 m i ll i o n )
la r g e s t o f

sev en

banks

in

is

th e

th e C e n tr a l

of

th ird

B revard

b a n k in g m a r k e t, w h ic h in c lu d e s C a p e C a n a v e r a l,
C o c o a , C o c o a B e a c h , a n d M e r r itt I s la n d , F lo r id a .
B a n k c o n t r o ls a p p r o x im a t e ly

1 6 p er c e n t o f th e

to ta l d e p o s it s in th a t m a r k e t; th e t w o la r g e r b a n k s
in th e

m a r k e t,

w h ic h

are

s u b s id ia r ie s o f

bank

h o ld in g c o m p a n i e s , h o ld 31 p er c e n t a n d 1 9 p er
c e n t , r e s p e c t iv e ly , o f m a r k e t d e p o s i t s . A lt h o u g h
th e m a r k e t is m a r g in a lly

a ttr a c tiv e fo r d e

novo

e n t r y , th e p r e s e n t p r o p o s a l w o u ld n o t r a is e s i g n i f ­
ic a n t b a rriers to e n tr y b y th e m a n y o th e r p o te n t ia l
e n tr a n ts

in to

th e

m a r k e t.

T h is

p rop osal

w o u ld

r e p r e s e n t A p p l i c a n t ’s in itia l e n tr y in to th e C e n tr a l
B revard

A p p l ic a n t ’s

s u b s id ia r ie s

and

a r e a s , a n d th e r e s tr ic tio n s p la c e d o n b r a n c h in g b y
S ta te la w .
The

fin a n c ia l

and

m a n a g e r ia l

resou rces

and

p r o s p e c ts o f A p p lic a n t a re r e g a r d e d a s s a t is f a c t o r y
in v i e w

o f A p p li c a n t ’s c o m m it m e n t to in c r e a s e
c e r ta in

of

its

s u b s id ia r y

b an k s.

The

fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s o f B a n k

a re

g e n e r a lly s a t is f a c t o r y . B a n k h a s r e c e n t ly e x p e r i ­
e n c e d s lo w g r o w t h , a n d it a p p e a r s th a t a ffilia tio n
w ith A p p lic a n t w i ll e n h a n c e its p r o s p e c t s b y e n a ­
b lin g it to c o m p e t e m o r e e f f e c t i v e l y w it h th e o th e r
b a n k s w it h in th e C e n tr a l B r e v a r d m a r k e t. C o n s i d ­
e r a t io n s r e la tin g to th e b a n k in g f a c to r s a re c o n ­
s is te n t w ith a p p r o v a l o f th e a p p lic a tio n . A p p lic a n t

A p p lic a n t , th e fo u r th la r g e s t b a n k in g o r g a n i­

nor

s e p a r a tin g

B a n k , th e p r e s e n c e o f b a n k s in th e in te r v e n in g

c a p ita l in

N o t i c e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity
fo r in te r e s t e d

ta n c es

m a r k e t.

A p p lic a n t ’s c l o s e s t

s u b s id ia r y

b a n k in g o f fic e to B a n k is lo c a t e d 17 m i le s n o r th ,
a n d e a c h o f th e b a n k s o b ta in s a s lig h t a m o u n t o f
lo a n s a n d d e p o s it s fr o m th e o t h e r ’s s e r v ic e a rea .
N o n e o f A p p l i c a n t ’s o th e r s u b s id ia r ie s c o m p e t e s
w ith B a n k . A c c o r d i n g ly , n o m e a n in g f u l a m o u n t

p r o p o s e s to e x p a n d a n d im p r o v e B a n k ’s s e r v ic e s
b y o f fe r in g tru st s e r v ic e s a n d a s s is t in g B a n k w ith
d a ta

p r o c e s s in g

s e r v ic e s,

in v e s t m e n t

se r v ic e s,

b u s in e s s d e v e lo p m e n t , a n d m o r tg a g e le n d in g s e r ­
v i c e s . A c c o r d i n g l y , c o n s id e r a t io n s r e la tin g to th e
c o n v e n i e n c e a n d n e e d s o f th e c o m m u n it y to b e
s e r v e d le n d s o m e w e ig h t t o w a r d a p p r o v a l o f th e
a p p lic a tio n .
In c o n s id e r in g th is a p p lic a t io n , th e B o a r d h a s
e x a m in e d a c o v e n a n t n o t to c o m p e t e c o n t a in e d in
an a g r e e m e n t b e t w e e n A p p lic a n t a n d d ir e c to r s o f
B a n k . It a p p e a r s th a t t h e p r o v is io n s o f th e c o v e ­
n a n t are r e a s o n a b le in d u r a tio n , s c o p e , a n d g e o ­
g r a p h ic a r e a . T h e r e fo r e , th e B o a r d is o f th e v i e w
th a t th e a g r e e m e n t n o t to c o m p e t e b y th e d ir e c to r s
o f B ank

does

n o t p r e c lu d e

an a p p r o v a l o f th e

a p p lic a tio n b a s e d u p o n o th e r c o n s id e r a t io n s p r e ­
v io u s ly d is c u s s e d h e r e in . It is th e B o a r d ’s j u d g ­
m e n t th at th e p r o p o s e d a c q u is it io n is in th e p u b lic
in te r e s t a n d th a t th e

a p p lic a tio n

s h o u ld

be

ap­

proved.
O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n

is

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e
tr a n s a c tio n s h a ll n o t b e m a d e (a ) b e f o r e th e th ir ­
tie th c a le n d a r d a y f o l lo w i n g t h e e f f e c t i v e d a te o f
th is O rd er or (b ) la ter th a n th r e e m o n t h s a fte r th e
e f f e c t iv e d a te o f th is O r d e r , u n le s s s u c h p e r io d
is e x t e n d e d fo r g o o d c a u s e b y th e B o a r d , o r b y
th e F e d e r a l R e s e r v e B a n k o f A tla n ta p u r su a n t to
d e le g a t e d a u th o r ity .
B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e

1All data are as of June 30, 1973, unless otherwise indicated,
and include formations and acquisitions approved by the Board
through April 15, 1974.



M ay 2 0 , 1974.

456

FEDERAL RESERVE BULLETIN □ JUNE 1974

O R D ER S UNDER SECTION 4 (c)(8 ) OF
BANK HOLDING COMPANY ACT

V o tin g f o r th is a c tio n : G o v e r n o r s S h e e h a n , B u c h e r, H o lla n d ,
a n d W a llic h . V o tin g a g a in s t th is a c tio n : V ic e C h a ir m a n
M itc h e ll a n d G o v e rn o r B r im m e r. A b s e n t a n d n o t v o tin g :
C h a ir m a n B u rn s .

C E N T R A N B A N C S H A R E S C O R P O R A T IO N ,
(S ig n e d ) C h e s t e r B . F e l d b e r g ,
[s e a l]

C L E V E L A N D , O H IO

S e c r e t a r y o f th e B o a r d .

O rder A

p p r o v in g

A c q u is it io n

of

B e n G o r d o n F in a n c e C o m p a n y , I n c .
D

S tatem ent

is s e n t in g

G overnors M

it c h e l l

and

of

C e n tr a n

B r im m e r

B an csh ares

C o r p o r a t io n ,

C le v e la n d ,

O h i o , a b a n k h o ld in g c o m p a n y w it h in th e m e a n in g
W e w o u ld d e n y th e a p p lic a tio n b y U n ite d F ir st

o f th e B a n k H o ld in g C o m p a n y A c t , h a s a p p lie d

F lo r id a B a n k s , I n c ., to a c q u ir e F ir st N a t io n a l B a n k

fo r th e B o a r d ’s a p p r o v a l, u n d e r s e c t io n 4 ( c ) ( 8 ) o f

o f M err itt I s la n d . A le tte r a g r e e m e n t th a t is part
o f th e

p r o p o s a l c o n t a in s

a r e s tr ic tiv e

coven an t

w h ic h w o u ld h a v e an a d v e r s e e f f e c t o n b a n k in g
c o m p e t it io n in B r e v a r d C o u n ty . F u r th e r m o r e , th e
r e c o r d c o n t a in s n o s u p p o r tin g e v i d e n c e th a t th e
a n t ic o m p e t it iv e

e ffe c ts

c le a r ly o u t w e i g h e d

of

th e

coven an t

“ are

in th e p u b lic in te r e s t b y th e

p r o b a b le e f f e c t o f th e tr a n s a c tio n in m e e t in g th e
c o n v e n i e n c e a n d n e e d s o f th e c o m m u n it y to b e
s e r v e d ” a s r e q u ir e d b y th e B a n k H o ld in g C o m ­
p an y A ct (1 2 U .S .C .

to r s o f B a n k fr o m s e r v in g a s a d ir e c to r o r o ffic e r
bank

o u t s id e

A p p lic a n t ’s s y s t e m

w it h in

B r e v a r d C o u n ty fo r a p e r io d o f t w o y e a r s fr o m
th e d a te o f th e e x c h a n g e o f s t o c k or fr o m th e d a te
o f th e ir r e s ig n a t io n a s d ir e c to r s — w h ic h e v e r o c c u r s
la s t. T h is r e s tr ic tio n p la c e d o n th e fu tu r e e m p l o y ­
m en t

of

d ir e c to r s

of

Bank

w o u ld

a f fe c t

th r e e

b a n k in g m a r k e ts w it h in B r e v a r d C o u n t y , d e n y in g
p resen t

and

p r o s p e c t iv e

B e n G o r d o n F in a n c e C o m p a n y , I n c . ( “ B e n G o r ­
d o n ” ) , H o u s t o n , T e x a s . B e n G o r d o n e n g a g e s in
th e a c t iv it ie s o f m a k in g o r a c q u ir in g

co n su m er

lo a n s a n d o th e r e x t e n s i o n s o f c r e d it;

a c t in g

as

in s u r a n c e a g e n t or b r o k e r in th e s a le o f c r e d it l i f e ,
a c c id e n t a n d h e a lth in s u r a n c e , a n d p r o p e r ty in s u r ­
a n c e o n c o lla t e r a l, a ll in c id e n t to e x t e n s i o n s o f
c o n s u m e r c r e d it b y B e n G o r d o n ’s s u b s id ia r ie s ; a n d
th e u n d e r w r it in g o f c r e d it l if e a n d c r e d it a c c id e n t

1 8 4 2 (c )(2 )).

T h e a g r e e m e n t in q u e s t io n p r e c lu d e s th e d ir e c ­
o f any

th e A c t a n d § 2 2 5 . 4 ( b ) ( 2 ) o f th e B o a r d ’s R e g u la ­
t io n Y , t o a c q u ir e a ll o f th e c o m m o n s h a r e s o f

fin a n c ia l

in s t itu t io n s

th e r e in th e e x p e r t is e th a t t h e s e in d iv id u a ls c o u ld

a n d h e a lth in s u r a n c e s o s o ld . T h e u n d e r w r itin g
f u n c t io n is p e r fo r m e d b y a s e p a r a te ly - in c o r p o r a t e d
w h o l l y - o w n e d s u b s id ia r y o f B e n G o r d o n , I n v e s ­
to rs I n c o m e In s u r a n c e C o m p a n y ( “ I I I C ” ) , D a lla s ,
T e x a s . 1 S u c h a c t iv it ie s h a v e b e e n d e t e r m in e d b y
th e B o a r d to b e c l o s e l y r e la te d t o b a n k in g ( 1 2 C F R
2 2 5 .4 ( a )( 1 ), (9 ) and (1 0 )).
N o t i c e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity
fo r in te r e s t e d

p e r s o n s to s u b m it c o m m e n t s a n d

v i e w s o n th e p u b lic in te r e s t f a c t o r s , h a s b e e n d u ly
p u b lis h e d ( 3 9 F e d e r a l R e g i s t e r 2 3 0 8 ) . T h e t im e
fo r f ilin g c o m m e n t s a n d v i e w s h a s e x p ir e d , a n d

o ffe r to s u c h in s t itu t io n s .
A s w e h a v e in d ic a te d b e f o r e ,1 it is o u r j u d g m e n t

n o n e h a s b e e n r e c e iv e d .

th e fu tu r e e m ­

O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n is

p lo y m e n t o f e m p l o y e e s o f a b a n k b y o th e r b a n k in g

a p p r o v e d fo r th e r e a s o n s s e t fo r th in th e B o a r d ’s

o r g a n iz a t io n s a re in h e r e n t ly a n t ic o m p e t it iv e . S in c e

S ta t e m e n t, w h ic h w il l b e r e le a s e d at a la ter d a te .

th a t a g r e e m e n t s

w h ic h

p r e c lu d e

A p p lic a n t h a s p r e s e n te d n o e v i d e n c e th a t w o u ld
s u b s ta n tia te

any

s a lu ta r y

e ffe c t

th e

agreem ent

w o u ld h a v e o n b a n k in g w it h in B r e v a r d C o u n t y ,
w e fin d th e c o v e n a n t n o t to c o m p e t e to b e a n ti­
c o m p e t it iv e a n d c o n tr a r y

to th e p u b lic

in te r e s t.

B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e
A p r il 2 6 , 1 9 7 4 .
V o tin g f o r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r n o r s
M itc h e ll, S h e e h a n , H o lla n d , a n d W a llic h . A b s e n t a n d n o t
v o tin g : G o v e r n o r s B r im m e r a n d B u c h e r .

A c c o r d i n g l y , w e w o u ld d e n y th e a p p lic a t io n .

( S ig n e d ) C h e s t e r B . F e l d b e r g ,
[s e a l]

'Reference is made to our Dissenting Statement in regard
to the application of First Alabama Bancshares, In c., to acquire
Citizens Bank of Guntersville (59 F ederal R ese rv e B u l l e t i n
757).




S e c r e t a r y o f th e B o a r d .

'IIIC also underwrites ordinary life insurance on the lives
of employees of Ben Gordon’s subsidiaries for which Ben
Gordon’s subsidiaries pay the premiums, own the policies, and
are the beneficiaries. Such activity is not “ closely related to
banking” and Applicant has agreed to terminate that activity.

LAW DEPARTMENT

457

M o r e o v e r , e v e n if A p p lic a n t w e r e d e e m e d to b e

Statem ent
C e n tr a n B a n c s h a r e s C o r p o r a t io n , C le v e la n d ,
O h i o , a b a n k h o ld in g c o m p a n y w it h in th e m e a n in g

a lik e ly en tra n t in to th e H o u s t o n

o f th e B a n k H o ld in g C o m p a n y A c t , h a s a p p lie d

c o n t e m p la t e d b y th e a p p lic a tio n w o u ld n o t h a v e

fo r th e B o a r d ’s a p p r o v a l, u n d e r s e c t io n 4 ( c ) ( 8 ) o f

an a d v e r s e e f f e c t o n p o te n t ia l c o m p e t it io n in that

is n o t th e c a s e , c o n s u m m a t io n

m a r k e t, w h ic h
o f th e p r o p o s a l

t h e A c t a n d § 2 2 5 . 4 ( b ) ( 2 ) o f th e B o a r d ’s R e g u l a ­

a rea . N u m e r o u s c o n s u m e r fin a n c e c o m p a n ie s n o w

tio n Y , to a c q u ir e a ll o f th e c o m m o n sh a r e s o f

o p e r a te a to ta l o f 2 3 4 o f fic e s in th e H o u s t o n m a r k e t

B e n G o r d o n F in a n c e C o m p a n y , I n c . ( “ B e n G o r ­

a n d h e ld , in th e a g g r e g a t e , to ta l r e c e iv a b le s o f

d o n ” ) , H o u s t o n , T e x a s . B e n G o r d o n e n g a g e s in

$ 1 2 0 . 2 m i ll i o n , a s o f D e c e m b e r 3 1 , 1 9 7 2 .

th e a c t iv it ie s o f m a k in g o r a c q u ir in g

co n su m er

G o r d o n ’s sh a r e o f s u c h r e c e iv a b l e s a p p e a r s to b e

lo a n s a n d o th e r e x t e n s io n s

a c t in g

r o u g h ly 5 p er c e n t , an d its sh a r e o f th e m a r k e t

o f c r e d it;

as

B en

in s u r a n c e a g e n t or b r o k e r in th e s a le o f c r e d it l i f e ,

fo r p e r s o n a l in s t a llm e n t lo a n s w o u ld b e c o n s i d ­

a c c id e n t a n d h e a lth in s u r a n c e , an d p r o p e r ty in s u r ­

e r a b ly le s s if p e r s o n a l in s t a llm e n t lo a n s m a d e b y

a n c e o n c o lla t e r a l, a ll in c id e n t to e x t e n s i o n s o f

banks

c o n s u m e r c r e d it b y B e n G o r d o n ’s s u b s id ia r ie s ; an d

a g g r e g a t e m a r k e t fig u r e . O n th is b a s is , th e B o a r d

and

c r e d it

u n io n s

w ere

in c lu d e d

in

th e

th e u n d e r w r it in g o f c r e d it li f e a n d c r e d it a c c id e n t

r e g a r d s th e p r o p o s e d a c q u is it io n a s e s s e n t i a l ly a

a n d h e a lth in s u r a n c e s o s o ld .

f o o t h o ld e n tr y in to th e m a r k e t.

T h e u n d e r w r itin g

f u n c t io n is p e r f o r m e d b y a s e p a r a te ly - in c o r p o r a t e d
w h o l l y - o w n e d s u b s id ia r y o f B e n G o r d o n , I n v e s ­

C o n s u m m a tio n
crease

th e

of

th e

tr a n s a c tio n

fin a n c ia l r e s o u r c e s

s h o u ld

a v a ila b le

to

in ­
B en

to r s I n c o m e I n s u r a n c e C o m p a n y ( “ I I I C ” ) , D a ll a s ,

G o r d o n , w h ic h h a s e n c o u n te r e d d iffic u lty in m a in ­

T e x a s . 1 S u c h a c t iv it ie s h a v e b e e n d e t e r m in e d b y

ta in in g a d e q u a te c a p it a l. T h e a v a ila b ilit y o f c a p ita l

t h e B o a r d to b e c l o s e l y r e la te d to b a n k in g ( 1 2 C F R

fu n d s th r o u g h A p p lic a n t w i ll e n a b le B e n G o r d o n

2 2 5 .4 ( a )( 1 ), (9 ) und (1 0 )).

to e x p a n d its le n d in g c a p a c it y , to a v o id th e r e c u r ­

N o t i c e o f th e a p p lic a t io n , a f fo r d in g o p p o r tu n ity
f o r in te r e s t e d

p e r s o n s to s u b m it c o m m e n t s

an d

r e n c e o f r e c e n t d e n ia ls o f c r e d it to w o r t h y b o r ­
r o w e r s , a n d p e r h a p s e v e n to p u r s u e e x p a n s io n o f

v i e w s o n th e p u b lic in te r e s t f a c t o r s , h a s b e e n d u ly

its a c t iv it ie s

p u b lis h e d ( 3 9 F e d e r a l R e g i s t e r 2 3 0 8 ) . T h e t im e

c o n c lu d e s

fo r f ilin g c o m m e n t s a n d v i e w s h a s e x p ir e d , a n d

p u b lic

n o n e h a s b e e n r e c e iv e d .
A p p lic a n t c o n t r o ls fiv e

p r o p o s e d in d ir e c t a c q u is it io n o f th e c o n s u m e r fi­
b a n k in g

s u b s id ia r ie s ,

h o ld in g a g g r e g a t e d e p o s it s o f $ 1 . 4 b illio n a s o f
J u n e 3 0 , 1 9 7 3 . A p p lic a n t a ls o c o n t r o ls th r e e c o n ­
su m e r fin a n c e c o m p a n ie s w it h to ta l a s s e t s o f $ 2 9 . 8

de

th a t

in te r e st

novo.

A c c o r d in g l y ,

c o m p e t it i v e
fa c to r s

th e

B oard

c o n s id e r a t io n s

r e le v a n t

to

an d

A p p li c a n t ’s

n a n c e s u b s id ia r ie s o f B e n G o r d o n are c o n s is t e n t
w it h a p p r o v a l o f th e a p p lic a tio n .
The

co n su m er

fin a n c e

s u b s id ia r ie s

a ls o

s e ll

c r e d it lif e in s u r a n c e a n d c r e d it a c c id e n t a n d h e a lth

m illio n a s o f J u ly 3 1 , 1 9 7 3 . N o n e o f A p p lic a n t ’s

in s u r a n c e a s w e ll a s p r o p e r ty in s u r a n c e in c o n n e c ­

c o n s u m e r fin a n c e s u b s id ia r ie s o p e r a t e s in th e S ta te

t io n w ith lo a n s it o r ig in a t e s . D u e to th e lim it e d
n a tu re o f t h o s e in s u r a n c e s a le s a c t iv it i e s , it d o e s

o f T ex a s.
B e n G o r d o n is b a s e d in , a n d its n in e c o n s u m e r

n o t a p p e a r th at A p p li c a n t ’s in d ir e c t p e r f o r m a n c e

fin a n c e s u b s id ia r ie s lim it th e ir o p e r a t io n s t o , th e

o f s u c h a c t iv it ie s w o u ld h a v e a n y s ig n if ic a n t e f f e c t

H o u s t o n S ta n d a r d M e t r o p o lita n S ta t is t ic a l A r e a ,

o n e it h e r e x i s t in g o r p o te n t ia l c o m p e t it io n . R a th e r ,

th e r e le v a n t g e o g r a p h ic a rea in w h ic h to a d ju d g e

th e p u b lic w o u ld b e s e r v e d b y th e g r e a te r c o n v e n ­

th e c o m p e t i t i v e e f f e c t s o f th e p r o p o s a l. B e n G o r ­
d o n ’s c o n s u m e r f in a n c e s u b s id ia r ie s h o ld to ta l r e ­

ie n c e d e r iv e d fr o m th e c o n t in u e d a v a ila b ilit y o f
s u c h c r e d it in s u r a n c e at th e s a m e lo c a t io n at w h ic h

c e i v a b l e s o f $ 5 . 6 m illi o n . A lt h o u g h A p p lic a n t an d

c r e d it is e x t e n d e d .

B e n G o r d o n are e a c h e n g a g e d in th e m a k in g o f

T h e r e is n o e v id e n c e in th e r e c o r d in d ic a tin g

c o n s u m e r lo a n s , it a p p e a r s th at c o n s u m m a t io n o f

th a t c o n s u m m a t io n o f th e p r o p o s e d in d ir e c t a c q u i­

th e p r o p o s e d
d ecrease

in

a c q u is it io n
e x is tin g

w o u ld

c o m p e t it io n

n o t r e s u lt in a
s in c e

n e ith e r

s it io n o f th e c o n s u m e r fin a n c e s u b s id ia r ie s o f B e n
G o r d o n w o u ld r e s u lt in an u n d u e c o n c e n t r a t io n o f

c o m p e t e s in th e m a k in g o f c o n s u m e r lo a n s in a n y

r e s o u r c e s , u n fa ir c o m p e t it i o n , c o n f lic t s o f in te r ­

g e o g r a p h ic m a r k e t in w h ic h th e o th e r o p e r a t e s .

e s t s , u n s o u n d b a n k in g p r a c t ic e s , o r o th e r a d v e r s e
e ffe c ts .
IIIC , a n o th e r s u b s id ia r y o f B e n G o r d o n , d ir e c t ly

’IIIC also underwrites ordinary life insurance on the lives
of employees of Ben Gordon’s subsidiaries for which Ben
Gordon’s subsidiaries pay the premiums, own the policies, and
are the beneficiaries. Such activity is not “ closely related to
banking” and Applicant has agreed to terminate that activity.




u n d e r w r ite s c r e d it

li f e

a n d c r e d it

a c c id e n t

an d

h e a lth in s u r a n c e o n a p p lic a b le e x t e n s i o n s o f c r e d it
m a d e b y s u b s id ia r ie s o f B e n G o r d o n . C r e d it l i f e
an d d is a b ilit y in s u r a n c e is g e n e r a lly m a d e a v a il-

FEDERAL RESERVE BULLETIN □ JUNE 1974

458

a b le b y b a n k s a n d o th e r le n d e r s , a n d s u c h in s u r ­

F R A N K L IN N E W Y O R K C O R P O R A T IO N ,

a n c e is d e s ig n e d to a s s u r e r e p a y m e n t o f a lo a n

NEW YO RK , NEW YORK

in th e e v e n t o f d e a th o r d is a b ilit y o f th e b o r r o w e r .

O rder D

A p p lic a n t o r ig in a lly p r o p o s e d to r e d u c e th e a n ­

N

n u a l p r e m iu m s c h a r g e d b y IIIC fo r u n d e r w r itin g
c r e d it l if e in s u r a n c e b y $ 0 .0 5 p er h u n d r e d d o lla r s

A c q u is it io n

e n y in g

F r a n k lin N e w

of

T alcott

C o r p o r a t io n

a t io n a l

Y ork

C o r p o r a t io n , N e w

Y ork,

o f in itia l in d e b t e d n e s s fr o m its t h e n - p r e v a ilin g rate

N e w Y o r k , a b a n k h o ld in g c o m p a n y w it h in th e

o f $ 0 . 7 5 p er h u n d r e d d o lla r s o f in itia l in d e b t e d n e s s

m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t o f

an d to e lim in a t e
c r e d it l if e

th e s u ic id e e x c lu s io n

in s u r a n c e

p o lic ie s .

fr o m

C om pany

its

1 9 5 6 , h a s a p p lie d , p u r su a n t to § 4 ( c ) ( 8 ) o f th e

fu r th er

A c t a n d § 2 2 5 .4 ( b ) ( 2 ) o f th e B o a r d ’s R e g u la t io n

p r o p o s e d to in c r e a s e th e p o li c y b e n e fits o f I I I C ’s

Y,

c r e d it a c c id e n t a n d h e a lth p o l i c i e s b y e lim in a t in g

sh a r e s

a ll e x c l u s io n s o th e r th a n

c o t t ” ) , N e w Y o r k , N e w Y o r k . T a lc o t t th r o u g h its

D u r in g

th e

pendency

of

th e “ w a r e x c l u s i o n ” .
th is

a p p lic a t io n ,

th e

fo r th e B o a r d ’s
of

T a lc o t t

a p p r o v a l t o a c q u ir e

N a t io n a l

v o t in g

C o r p o r a tio n

( “ T a l­

s u b s id ia r ie s e n g a g e s in th e a c t iv it ie s o f f a c t o r in g ,

D e p a r tm e n t o f I n s u r a n c e o f th e S ta te o f T e x a s

b u s in e s s f in a n c in g ,

r e d u c e d th e

s t a llm e n t lo a n s , s e c u r e d a n d u n s e c u r e d , to in d i­

ra te

on

hundred

“ p r i m a f a c i e ” 2 m a x im u m

c r e d it

life

d o lla r s

to

in s u r a n c e
p er

fr o m

$ 0 .7 5

p er

d ir e c t c o n s u m e r

in ­

v id u a ls ; s e lli n g c r e d it l i f e , a n d c r e d it a c c id e n t a n d
h e a lth in s u r a n c e p o l i c i e s to t h o s e in d iv id u a ls ; u n ­

red u ce

d e r w r it in g s u c h in s u r a n c e ; s e l li n g to t h o s e in d i ­

I I I C ’s p r e m iu m r a te s in a c c o r d a n c e w ith S ta te la w .

v id u a ls in s u r a n c e o n p r o p e r ty ; p u r c h a s in g r eta il

p ro p o sed

hundred

m a k in g

d o lla r s .

A p p lic a n t t h e r e f o r e

$ 0 .5 8

p r e m iu m

fu r th er t o

S i n c e A p p lic a n t ’s o r ig in a l p r o p o s a l c o n t e m p la t e d

in s t a llm e n t s a le s fin a n c e c o n t r a c t s fr o m

a r e d u c tio n

b r o k e r in g

in

ra tes,

and

th e

r e v is e d

p ro p o sa l

co n su m er

lo a n s

fo r

th e

d e a le r s ;

a cco u n ts

of

c o n t in u e s to c o n t e m p la t e r e m o v a l o f c e r ta in p o li c y

o th e r s ; c o m p u t e r a n d e q u ip m e n t le a s in g ; a n d th e

e x c l u s i o n s , th e B o a r d c o n c lu d e s , o n th e b a s is o f

m a n u fa c tu r e o f t r u c k s .1

th e r e c o r d , th a t th e m o d ifie d p r o p o s a l p r o v id e s

N o t i c e o f th e a p p lic a t io n , a f fo r d in g o p p o r tu n it y

s u ffic ie n t p u b lic b e n e f its t o o u t w e ig h a n y a d v e r s e

fo r in te r e s te d

e ffe c ts .
B ased

v i e w s o n th e p u b lic in te r e s t f a c t o r s , h a s b e e n d u ly
upon

th e f o r e g o in g

e r a t io n s r e f le c te d

and

in th e r e c o r d ,

o th e r c o n s i d ­
th e

B oard

p e r s o n s to s u b m it c o m m e n t s a n d

p u b lis h e d ( 3 8 F e d e r a l R e g is t e r 2 8 3 2 6 ) . T h e tim e

has

fo r f ilin g c o m m e n t s a n d v i e w s h a s e x p ir e d ; an d

d e t e r m in e d th a t th e b a la n c e o f th e p u b lic in te r e st

th e B o a r d h a s c o n s id e r e d a ll c o m m e n t s r e c e iv e d

fa c to r s th e B o a r d is re q u ir e d to c o n s id e r u n d e r

in lig h t o f th e p u b lic in te r e s t fa c to r s s e t fo r th in

s e c t io n 4 ( c ) ( 8 ) is f a v o r a b le . A c c o r d i n g ly , th e a p ­

§ 4 ( c ) ( 8 ) o f th e A c t ( 1 2 U . S . C . 1 8 3 4 ( c ) ( 8 ) ) .

p lic a t io n is h e r e b y a p p r o v e d . T h is d e t e r m in a t io n
is s u b j e c t t o t h e c o n d it io n s se t fo r th

A p p lic a n t , a o n e - b a n k

h o ld in g

com p any,

is,

in s e c t io n

b a s e d u p o n d o m e s t ic d e p o s it s , th e ten th la r g e s t

2 2 5 . 4 ( c ) o f R e g u la t io n Y a n d to th e B o a r d ’s a u ­
th o r ity to r e q u ir e s u c h m o d if ic a t io n o r te r m in a tio n

b a n k in g o r g a n iz a t io n in N e w Y o r k S ta t e , an d th e

o f th e a c t iv it ie s o f a h o ld in g c o m p a n y o r a n y o f

lin

its s u b s id ia r ie s a s th e B o a r d fin d s n e c e s s a r y

to

( “ B a n k ” ) , w h ic h h o ld s $ 2 . 6 b illio n o f d o m e s t ic

a s s u r e c o m p l ia n c e w it h th e p r o v is io n s a n d p u r ­

d e p o s i t s .2 T o ta l d o m e s t i c a n d f o r e ig n d e p o s it s o f

p o s e s o f th e A c t a n d th e B o a r d ’s r e g u la t io n s an d

B a n k a p p r o x im a te $ 3 . 7 b i ll io n .

o r d e r s is s u e d th e r e u n d e r ,

or to p r e v e n t e v a s io n

th e r e o f.

2 2 n d la r g e s t n a tio n a lly . A p p lic a n t c o n t r o ls F r a n k ­
N a t io n a l

T a lc o t t ,

Bank,

w ith

to ta l

N ew

a ssets

Y ork,

of

N ew

$724

Y ork

m i l l i o n ,3

ra n k ed a s th e 1 7 th la r g e s t fin a n c ia l c o m p a n y

in

th e n a tio n a s o f y e a r - e n d 1 9 7 2 an d a s th e n a t io n ’s
M ay 9 , 1974

11th la r g e s t in d e p e n d e n t fin a n c e c o m p a n y b a s e d
o n to ta l c a p ita l f u n d s . It is a su b s ta n tia l c o m p e tit o r
in e a c h p r o d u c t m a r k e t in w h ic h it e n g a g e s . It is
th e fo u r th

la r g e s t

f a c to r

in

th e

n a tio n ,

h a v in g

a c q u ir e d f a c to r in g r e c e iv a b le s o f $ 1 .1 b illio n d u r2The “p rim a fa c ie ” maximum premium rate presumes that
a credit insurance underwriter’s loss experience constitutes 50
per cent or less of premiums received. If an underwriter’s loss
experience exceeds that amount, the “prim a fa c ie ” maximum
premium rate will not limit the amount of premium charged
by the underwriter. There is no evidence in the record that
IIIC’s loss experience is such that it need not observe the
“ p rim a f a c ie ” rate.




1 Applicant proposes to terminate this activity and to modify
certain insurance sales, underwriting, and leasing activities of
Talcott into conformity with Regulation Y within two years
of consummation of the proposed transaction.
2Deposit data as of December 31, 1973.

:}Data as of December 31, 1973.

LAW DEPARTMENT

459

in g 1 9 7 2 , r e p r e s e n t in g 7 . 6 p e r c e n t o f th e in d u s tr y

B a n k i t s e l f h a s e x p e r ie n c e d an e a r n in g s r e c o r d
in r e c e n t y e a r s b e l o w

th e in d u s tr y a v e r a g e , a n d

to ta l. In th e a rea o f b u s in e s s f in a n c in g , T a lc o t t
m a d e $ 1 . 4 b illio n in lo a n s d u r in g th e first s ix

h a s r e c e n t ly m a d e a su b s ta n tia l s h if t in m a n a g e ­

m o n th s o f 1 9 7 3 a n d , a s o f J u n e 3 0 ,

1 9 7 3 , h e ld

m e n t p o l ic i e s d e s ig n e d to im p r o v e p e r f o r m a n c e

g r o s s o u ts t a n d in g s o f $ 4 7 9 m illi o n . Its c o n s u m e r

s ig n if ic a n tly . A s c h a n g e s in th e i n s t it u t io n ’s in te r ­

fin a n c e a c t iv it ie s are s u b s ta n tia l.

nal str u c tu r e a n d a s s e t c o m p o s i t i o n are p u r s u e d ,

T h e 1 9 7 0 A m e n d m e n t s to th e A c t r e q u ir e th at

it is th e B o a r d ’s v i e w th at th e a c q u is it io n o f T a lc o t t

th e B o a r d , in a c t in g o n an a p p lic a tio n u n d e r §

w o u ld b e a c o m p lic a t in g a n d d iv e r s io n a r y f a c to r .

4 ( c ) ( 8 ) , c o n s id e r w h e t h e r th e p e r f o r m a n c e o f a

A s th e B o a r d h a s p r e v i o u s l y s ta te d o n a n u m b e r

p a r tic u la r a c t iv it y b y an a ffilia te o f a b a n k h o ld in g

o f o c c a s i o n s , a b a n k h o ld in g c o m p a n y s h o u ld b e

c o m p a n y “ c a n r e a s o n a b ly b e e x p e c t e d to p r o d u c e

a s o u r c e o f fin a n c ia l a n d m a n a g e r ia l str e n g th fo r

b e n e fits to th e p u b lic , s u c h as g r e a te r c o n v e n i e n c e ,

its s u b s id ia r y b a n k s .

in c r e a s e d c o m p e t i t i o n , o r g a in s in e f f ic ie n c y , th a t

p r o p o s a l m a y c o n s t it u t e an u n d u e c la im o n A p p li ­

o u t w e ig h p o s s i b le a d v e r s e e f f e c t s , s u c h a s u n d u e

c a n t ’s m a n a g e r ia l a n d fin a n c ia l r e s o u r c e s a n d c o n ­

c o n c e n t r a t io n

c lu d e s th a t th is r e p r e s e n t s an a d v e r s e e f f e c t to b e

c o m p e t it io n ,

o f resou rces,
c o n f lic ts

of

d ecreased

in te r e s t s ,

or

or

u n fa ir

u n so u n d

The

B oard

fin d s th at th is

c o n s id e r e d u n d e r § 4 ( c ) ( 8 ) .

b a n k in g p r a c t i c e s . ” T h is b a la n c in g t e s t n e c e s s i ­

S e c t io n 4 ( c ) ( 8 ) o f th e A c t p la c e s o n A p p lic a n t

ta te s a p o s i t i v e s h o w i n g o f p u b lic b e n e f its , o u t ­

th e b u r d e n o f a f fir m a t iv e ly d e m o n s t r a tin g r e a s o n a ­

w e i g h i n g th e “ p o s s i b l e ”

ad v erse e ffe c ts o f an y

b ly e x p e c t e d p u b lic b e n e fits w h ic h o u t w e i g h th e

p r o p o s e d a c q u is it io n , b e f o r e an a p p lic a tio n m a y

p o s s ib le a d v e r s e e f f e c t s d e s c r ib e d a b o v e .

b e a p p r o v e d . A p p lic a n t m u s t b e a r th is b u r d e n .

c a n t c o n t e n d s th a t c o n s u m m a t io n o f th e p r o p o s a l

B a n k a n d T a lc o t t are c o m m o n l y e n g a g e d in f o u r

A p p li ­

w o u ld le a d to th e p r o v is io n o f v a r io u s n e w s e r ­

r e c e iv a b le f in a n c in g ,

v ic e s . T h e B o a r d c o n c l u d e s th a t a ll s u c h s e r v ic e s

sh o r t term le n d in g s e c u r e d b y first m o r tg a g e s o n

are r e a d ily a v a ila b le in th e N e w Y o r k m e tr o p o lit a n

p r o d u c t m a r k e ts :

a cco u n ts

f in a n c e ,

m a r k e t an d fin d s th at th e p r o v is io n o f s u c h a d d i­

a n d e q u ip m e n t le a s in g . C o n s u m m a tio n o f th e p r o ­

t io n a l s e r v ic e s w o u ld c o n s t it u t e o n l y a m in im a l

p o s a l w o u ld e lim in a t e a s m a ll a m o u n t o f e x is t in g

p u b lic

c o m p e t it io n in e a c h o f t h e s e p r o d u c t m a r k e ts w ith

c o n s u m m a tio n

th e g r e a t e s t e lim in a t io n o c c u r r in g in th e c o n s u m e r

v a r io u s g a in s in e f f ic ie n c y a n d e n a b le A p p lic a n t

in c o m e - p r o d u c in g

p r o p e r ty ,

co n su m er

b e n e fit.

A p p lic a n t
of

th e

fu r th e r c o n t e n d s

p ro p o sa l

w o u ld

le a d

th a t
to

fin a n c e p r o d u c t lin e in th e N e w Y o r k a r e a . In v ie w

to m o r e e f f e c t i v e ly c o m p e t e w ith its c o m p e t it o r s .

o f th e fa c t th a t th e r e is s o m e e x is t i n g c o m p e t it io n

T h e B o a r d is n o t, h o w e v e r , p e r s u a d e d th at s u c h

b e t w e e n B a n k a n d T a lc o t t a n d th a t th is c o m p e t i­

b e n e fits a s m a y r e a s o n a b ly b e e x p e c t e d to o c c u r

tio n

w ill b e s ig n if ic a n t e n o u g h to o u t w e ig h th e p o s s ib le

c o u ld

be

e x p e c te d

to

in c r e a s e ,

th e

Board

fu r th er c o n c l u d e s th a t c o n s u m m a t io n o f th e p r o ­

a d v e r s e e f f e c t s in v o l v e d in th is p r o p o s a l.

p o s a l w o u ld e lim in a t e s o m e p o te n t ia l c o m p e t it io n .
In its c o n s id e r a t io n o f th is a p p lic a t io n , th e

O n th e b a s is o f th e r e c o r d th e B o a r d c o n c lu d e s
th at th e p o s s i b le a d v e r s e e f f e c t s o f c o n s u m m a t io n

B o a r d n o te d th a t B a n k is th e 2 1 s t la r g e s t b a n k

o f th e p r o p o s a l are n o t o u t w e ig h e d b y r e a s o n a b ly

in th e U n ite d S ta t e s . T a lc o t t is th e 1 1 th la r g e s t

e x p e c t e d b e n e fits to th e p u b lic a n d th a t th e a p p li­

in d e p e n d e n t c o m m e r c ia l fin a n c e c o m p a n y an d th e

c a t io n s h o u ld b e , a n d h e r e b y i s , d e n ie d .

fo u r th

la r g e s t in d e p e n d e n t f a c to r in th e

U n ite d

S ta t e s . A n y p r o p o s e d a m a lg a m a t io n o f th is m a g ­

B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t iv e
M ay 1, 1974.

n itu d e is c l o s e l y e x a m in e d b y th e B o a r d to d e t e r ­
m in e w h e t h e r it i n v o l v e s q u e s t io n s o f c o n c e n t r a ­
tio n o f r e s o u r c e s w h ic h w o u ld b e in c o n s is t e n t w ith

V o tin g f o r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r n o r s
M itc h e ll, S h e e h a n , B u c h e r , H o lla n d , a n d W a llic h . A b s e n t a n d
n o t v o tin g : G o v e r n o r B r im m e r .

th e in te n t o f C o n g r e s s in a d o p tin g th e B a n k H o l d ­
( S ig n e d ) C h e s t e r B . F e l d b e r g ,

in g C o m p a n y A c t A m e n d m e n t s o f 1 9 7 0 . W h ile
th e B o a r d c o n s id e r s th e q u e s t io n in th is c a s e to
b e a m a r g in a l

one,

on

b a la n c e th e

B oard

[s e a l]

S e c r e t a r y o f th e B o a r d .

has

c o n c lu d e d th a t th is fa c to r s h o u ld b e a c c o r d e d s o m e
a d v erse w e ig h t .4

N C N B C O R P O R A T IO N ,
C H A R L O T T E , N O R T H C A R O L IN A
O r d e r A p p r o v in g A c q u is it io n
& C alhoun M

4Governor Sheehan, while concurring in the Board’s action
on this matter, dissents from the views expressed in this
paragraph.




ortgage

of

B

lanchard

C o m pany

N C N B C o r p o r a tio n , C h a r lo t te , N o r th C a r o lin a ,
a b a n k h o ld in g c o m p a n y w it h in th e m e a n in g o f

FEDERAL RESERVE BULLETIN □ JUNE 1974

460

th e B a n k H o ld in g C o m p a n y A c t , h a s a p p lie d fo r

B la n c h a r d o p e r a t e s fo u r o f fic e s in G e o r g i a ,2 an d

th e B o a r d ’s a p p r o v a l, u n d e r s e c t io n 4 ( c ) ( 8 ) o f th e

engages

A c t a n d § 2 2 5 . 4 ( b ) ( 2 ) o f th e B o a r d ’s R e g u la t io n

s e r v ic in g o f 1 - 4 f a m ily r e s id e n tia l m o r tg a g e lo a n s

p r im a r ily

in th e o r ig in a t io n ,

s a le ,

an d

Y , to a c q u ir e in d ir e c t ly all o f th e v o t in g s h a r e s

a n d in te r im c o n s t r u c t io n lo a n s . In a d d itio n , B la n ­

of

ch a r d a c t s a s a g e n t fo r th e s a le o f c r e d it lif e an d

B la n c h a r d

&

C a lh o u n

M o r tg a g e

C om pany

( “ B la n c h a r d ” ) , A u g u s t a , G e o r g ia , a c o m p a n y that

c r e d it a c c id e n t a n d h e a lth in s u r a n c e

e n g a g e s in th e a c t iv it ie s o f o r ig in a t in g , s e lli n g a n d

row ers .

s e r v ic in g m o r tg a g e lo a n s fo r its o w n a c c o u n t or

A p p li c a n t ’s s u b s id ia r ie s e n g a g e d

to its b o r ­
in m o r tg a g e

th e a c c o u n t o f o t h e r s , an d s e l li n g c r e d it l i f e , a n d

b a n k in g

p r e s e n tly

c r e d it a c c id e n t a n d h e a lth in s u r a n c e to its m o r tg a g e

C a r o lin a

and

c u s t o m e r s . S u c h a c t iv it ie s h a v e b e e n d e t e r m in e d

e x i s t i n g c o m p e t it io n b e t w e e n B la n c h a r d an d A p ­

b y th e B o a r d to b e c l o s e l y r e la te d to b a n k in g ( 1 2

p l ic a n t ’s m o r tg a g e b a n k in g s u b s id ia r ie s in th e r e s ­

C F R 2 2 5 .4 ( a )( 1 ), (3 ), and (9 )).

id e n tia l m o r tg a g e m a r k e t o f 1 - 4 f a m ily h o m e s o r

N o t i c e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity
fo r in te r e s te d

p e r s o n s to s u b m it c o m m e n t s

an d

o p e r a te

S o u th

p r im a r ily

C a r o lin a ,

and

in

th e r e

N o r th
is

no

in th e in te r im c o n s t r u c t io n lo a n m a r k e t. T h e r e is
s o m e e x i s t in g c o m p e t it io n b e t w e e n B la n c h a r d a n d

v i e w s o n th e p u b lic in te r e st f a c t o r s , h a s b e e n d u ly

C.

p u b lis h e d ( 3 8 F e d e r a l R e g is te r 3 2 8 5 0 ) . T h e tim e

S o u th C a r o lin a , w ith r e s p e c t to s e r v ic in g o f lo a n s ,

fo r filin g c o m m e n t s a n d v ie w s h a s e x p ir e d , an d

b u t th e e lim in a t io n o f th is s m a ll a m o u n t o f e x is t in g

n o n e h a s b e e n t im e ly

c o m p e t it io n

r e c e iv e d . T h e B o a r d

has

c o n s id e r e d th e a p p lic a tio n in lig h t o f th e f a c to r s

A p p lic a n t ’s
C a r o lin a

N a t io n a l

b a n k in g
Bank

s u b s id ia r y ,

( “ B a n k ” ),

N o r th

C h a r lo tte ,

is

not

&

C o .,

regarded

in A ik e n

as

C o u n ty ,

p r e s e n tin g

any

A lt h o u g h A p p lic a n t h a s th e r e s o u r c e s to e n te r
de

o n ly

W i ls o n

s ig n if ic a n t a d v e r s e e f f e c t s .

s e t fo rth in s e c t io n 4 ( c ) ( 8 ) o f th e A c t ( 1 2 U . S . C .
1843 (c )(8 )).

D o u g la s

n o v o in to th e m o r tg a g e m a r k e ts w h e r e B la n ­

c h a r d is lo c a t e d , th e a rea is p r e s e n tly s e r v e d b y
n u m e r o u s c o m p e t in g m o r tg a g e b a n k in g firm s a n d

N o r th C a r o lin a , c o n t r o ls d e p o s it s o f $ 1 . 9 b i l l i o n , 1

fin a n c ia l

r e p r e s e n tin g 1 8 .6 p er c e n t o f th e to ta l d e p o s it s in

e n tr a n ts in to th e G e o r g ia m a r k e ts w ill r e m a in a fter

c o m m e r c ia l b a n k s in th e S ta t e , a n d is th e s e c o n d

th is a c q u is it io n . T h e r e f o r e ,

la r g e s t b a n k in g o r g a n iz a t io n

c a n b e a p p r o v e d w it h o u t a s u b s ta n tia l le s s e n in g

A p p lic a n t e n g a g e s
a c t iv it ie s

in N o r th

in a n u m b e r
in s u r a n c e

f in a n c in g ,

co n su m er

of

n o n b a n k in g

brok erage,

of

p o te n t ia l

and

m any

c o m p e t it io n .

lik e ly

p o te n tia l

th e in sta n t p r o p o s a l
F u r th e r ,

in

v ie w

of

s m a ll

B la n c h a r d ’s r e la t iv e ly s m a ll s iz e in e a c h o f th e

in v e s t ­

c it ie s w h e r e its o f fic e s a re l o c a t e d ,3 A p p lic a n t w i ll

m e n t a d v is o r y s e r v ic e s , a n d tru st s e r v i c e s . A p p li ­

n o t a c q u ir e a d o m in a n t p o s it io n a m o n g m o r tg a g e

b u s in e s s

in c lu d in g

C a r o lin a .

in s t itu t io n s ,

f in a n c in g ,

c a n t a ls o e n g a g e s in m o r tg a g e le n d in g an d s e r v ic ­

b a n k e r s in a n y o f t h e s e a r e a s u p o n c o n s u m m a t io n

in g

m o r tg a g e

o f th is tr a n s a c tio n . T h e B o a r d is o f th e v i e w that

b a n k in g s u b s id ia r ie s : N C N B M o r t g a g e C o r p o r a ­

a p p r o v a l o f th e a p p lic a t io n , in s o fa r a s it r e la te s

t io n ,

to B la n c h a r d ’s m o r tg a g e b a n k in g a c t i v i t ie s , w o u ld

a c t iv it ie s

th r o u g h

C h a r lo t te ,

N o r th

Bank

and

C a r o lin a ,

tw o

w h ic h

has

a

m o r tg a g e s e r v ic in g p o r t f o lio o f $ 3 1 5 m illio n (a s

n o t h a v e a n y s ig n if ic a n t a d v e r s e e f f e c t o n e x i s t in g

o f J u n e 3 0 , 1 9 7 3 ) , a n d is th e th ird la r g e s t m o r tg a g e

o r p o te n tia l c o m p e t it io n in a n y r e le v a n t m a r k e t.

b a n k in g c o m p a n y in N o r th C a r o lin a an d 8 1 s t la r g ­

B la n c h a r d a ls o s e l ls c r e d it li f e , a n d c r e d it a c c i ­

e s t in th e n a tio n ; a n d C . D o u g la s W ils o n & C o . ,

d en t and

G r e e n v ille , S o u th C a r o lin a , w h ic h h a s a m o r tg a g e

n a tu re o f t h e s e in s u r a n c e a c t i v i t ie s , it d o e s n o t

s e r v ic in g p o r t f o lio o f $ 2 7 6 m illio n (a s o f J u n e 3 0 ,

a p p e a r that A p p lic a n t ’s a c q u is it io n o f B la n c h a r d ’s

h e a lth

in s u r a n c e .

Due

to th e

1 9 7 3 ) , a n d is th e la r g e s t m o r tg a g e c o m p a n y in

in s u r a n c e a c t iv it ie s

S o u th C a r o lin a a n d 9 2 n d la r g e s t in th e

e f f e c t o n e x is t i n g o r fu tu r e c o m p e t it io n .

n a tio n .

w o u ld

have

any

lim it e d

s ig n if ic a n t

A p p l i c a n t ’s t w o e x i s t in g m o r tg a g e b a n k in g s u b ­

It is a n tic ip a t e d th a t f o l l o w in g c o n s u m m a t io n

s id ia r ie s c o m b in e d w o u ld ran k 4 1 s t in th e n a tio n

o f th e p r o p o s e d a c q u i s i t i o n , A p p lic a n t w il l p r o v id e

in te r m s o f v o lu m e o f lo a n s s e r v i c e s .

B la n c h a r d w ith a r e lia b le s o u r c e o f r e la t iv e ly lo w

B la n c h a r d is th e 8 th la r g e s t m o r tg a g e c o m p a n y

c o s t fin a n c in g w ith w h ic h to p r o v id e in te r im c o n ­

h e a d q u a r te r e d in G e o r g ia , w it h a m o r tg a g e s e r v ic ­

str u c tio n lo a n s in th e G e o r g ia m a r k e ts in w h ic h

in g p o r t f o l i o o f $ 1 2 3 m illio n (a s o f J u n e 3 0 , 1 9 7 3 ) .
2The offices are located in the cities of Augusta, Macon,
Warner Robins, and Savannah.

’All banking data are as of June 30, 1973.



3Blanchard’s estimated share of the 1-4 family residential
mortgage market in each of the cities in which its offices are
located is less than 5 per cent.

461

LAW DEPARTMENT

it o p e r a t e s ; a n d A p p lic a n t w i l l p r o v id e B la n c h a r d

m o r tg a g e o p e r a t io n s in th e S o u th e a s t. In v i e w o f

w ith a c c e s s to a d d itio n a l s o u r c e s o f fu n d s in a

th e ra p id g r o w t h o f A p p l ic a n t ’s m o r tg a g e b a n k in g

v a r ie ty

of

fin a n c ia l

B la n c h a r d

to

m a r k e ts

c o m p e te

m ore

w h ic h

w ill

e f f e c t iv e l y

e n a b le

s u b s id ia r y , N C N B

in

h a s c lim b e d

th e

in

p a st

an d

s e r v ic in g

th a t c o n s u m m a t io n

a c q u is it io n

A p p lic a n t h a s c le a r ly d e m o n s t r a te d its a b ility to

u n d u e c o n c e n t r a t io n o f r e ­

e x p a n d s u c c e s s f u l ly its m o r tg a g e b a n k in g o p e r a ­

w o u ld r e s u lt in a n y

tw o

n a tio n a l

r a n k in g s

th e p r o p o s e d

th e

M o r t g a g e C o r p o r a tio n ( w h ic h

p o s it i o n s

S ta te . T h e r e is n o e v i d e n c e in th e r e c o r d in d ic a tin g
of

in

43

o n e -h a lf

y e a r s ),

s o u r c e s , u n fa ir c o m p e t it io n , c o n f lic ts o f in te r e s t s ,

t io n s . F u r th er, A p p lic a n t h a s r e c e n t ly e n te r e d th e

u n s o u n d b a n k in g p r a c t ic e s , or o th e r a d v e r s e e f ­

O r la n d o ,

f e c t s o n th e p u b lic in te r e s t.

th r o u g h th e d e n o v o e x p a n s io n o f o n e o f its e x i s t ­

B ased

upon

th e f o r e g o in g

e r a t io n s r e fle c te d

an d

in th e r e c o r d ,

o th e r c o n s i d ­
th e

B oard

has

F lo r id a

m o r tg a g e

in g m o r tg a g e b a n k in g
th e

c lo s e

p r o x im it y

b a n k in g

s u b s id ia r ie s .

to

th e

m arket

C o n s id e r in g

G e o r g ia

m arket o f

d e t e r m in e d th a t th e b a la n c e o f th e p u b lic in te r e st

A p p l i c a n t ’s m o r tg a g e b a n k in g o p e r a t io n s in S o u th

f a c to r s th e B o a r d is r e q u ir e d to c o n s id e r u n d e r

C a r o lin a an d its d e n o v o o f fic e in F lo r id a — a s w e l l

s e c t io n 4 ( c ) ( 8 ) is f a v o r a b le . A c c o r d in g ly , th e a p ­

as

p lic a tio n is h e r e b y a p p r o v e d . T h is d e t e r m in a t io n

s u c c e s s f u ll y

is s u b j e c t to th e c o n d it io n s s e t fo r th

2 2 5 . 4 ( c ) o f R e g u la t io n Y an d to th e B o a r d ’s a u ­

b e l ie v e th a t G e o r g ia is a l ik e ly S ta te fo r A p p li ­
c a n t ’s e x p a n s io n o f its m o r tg a g e b a n k in g o p e r a ­

th o r ity to r e q u ir e s u c h m o d if ic a t io n o r te r m in a tio n

tio n s . M o r e o v e r , A p p lic a n t c le a r ly h a s th e in te r e st

o f th e a c t iv it ie s o f a h o ld in g c o m p a n y o r a n y o f

to e n te r th e G e o r g ia m o r tg a g e m a r k e ts b y a lte r n a ­

its s u b s id ia r ie s a s th e B o a r d

t iv e m e a n s if th is a p p lic a tio n is d e n ie d . W e c o n ­

in s e c t io n

fin d s n e c e s s a r y

to

A p p l ic a n t ’s

d e m o n s t r a te d

a m o r tg a g e

a b ility

b a n k in g

to

o p e r a te

com p any— w e

a s s u r e c o m p lia n c e w ith th e p r o v is io n s a n d p u r ­

c lu d e th a t s ig n if ic a n t p o te n t ia l c o m p e t it io n e x is t s

p o s e s o f th e A c t a n d th e B o a r d ’s r e g u la t io n s an d

b etw een

o r d e r s is s u e d th e r e u n d e r , o r to p r e v e n t e v a s io n

s u b s id ia r ie s an d B la n c h a r d an d th is c o m p e t it io n

th e reo f.

A p p lic a n t ’s p r e s e n t

m o r tg a g e

b a n k in g

w o u ld b e e lim in a t e d b y a p p r o v a l o f th is a p p lic a ­

T h e tr a n s a c tio n s h a ll b e m a d e n o t la te r th a n

t io n . F u r th e r m o r e , w e are o f th e v i e w th a t— in th e

th r e e m o n th s a fte r th e e f f e c t i v e d a te o f th is O r d e r ,

a b s e n c e o f o v e r r id in g fa c to r s n o t p r e s e n t in th is

u n le s s s u c h p e r io d is e x t e n d e d fo r g o o d c a u s e b y

c a s e — m e d iu m - s iz e in s t itu t io n s s u c h a s B la n c h a r d

th e

Board

or b y

th e

F ederal

R eserve

B ank

of

s h o u ld

be

preserved

as

v e h ic le s

fo r e n tr y

and

m e a n s o f g r o w th fo r s m a lle r b a n k h o ld in g c o m p a ­

R ic h m o n d .
B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e

n ie s n o t r e p r e s e n te d in th e m a r k e t.

M ay 2 0 , 1974.

In o u r v i e w , th e sta n d a rd o f s e c t io n 4 ( c ) ( 8 ) o f
th e B a n k H o ld in g C o m p a n y A c t r e q u ir e s th e B o a r d

V o tin g fo r th is a c tio n : C h a irm a n B u rn s a n d G o v e rn o r s
M itc h e ll, S h e e h a n , B u c h e r , a n d H o lla n d . V o tin g a g a in s t th is
a c tio n : G o v e rn o rs B r im m e r a n d W a llic h .

( S ig n e d ) C h e s t e r B . F e l d b e r g ,
[ s e a l]

S e c r e t a r y o f th e B o a r d .

to d is a p p r o v e an a p p lic a tio n u n le s s it fin d s th a t
th e p o s s ib le

a d v erse e ffe c ts on

c o m p e t it io n

are

c le a r ly o u t w e ig h e d b y “ b e n e fits to th e p u b li c , s u c h
as g r e a te r c o n v e n i e n c e , in c r e a s e d c o m p e t i t io n , or
g a in s in e f f i c i e n c y .” A p p lic a n t h a s f a ile d to d e m ­

D is s e n t in g S t a t e m e n t
G o v e n o r s B r im m e r

and

W

o n str a te th a t a n y s ig n if ic a n t p o s i t iv e b e n e f its w o u ld

of

r e s u lt fr o m th is p r o p o s a l. A lt h o u g h A p p lic a n t h a s

a l l ic h

a s s e r te d th at it w i ll m a k e a v a ila b le to B la n c h a r d
W e w o u ld d e n y th e a p p lic a tio n b y N C N B C o r ­

an

in c r e a s e d

th a t c o n s u m m a t io n

are in a d e q u a te o r th a t it is in n e e d o f a d d itio n a l

a c q u is it io n

so u rces

c o m p e t it io n ,

th e

record

to

in v e s t o r s ,

g a g e C o m p a n y . U n lik e th e m a jo r it y , w e b e li e v e
th e p r o p o s e d

in

in s titu tio n a l

B la n c h a r d ’s c o n t a c ts

w o u ld h a v e s ig n if ic a n t a d v e r s e e f f e c t s o n p o te n tia l

n o th in g

of

p o r a tio n to a c q u ir e B la n c h a r d & C a lh o u n M o r t ­
of

is

num ber

th e r e

su g g est

w ith in s t itu t io n a l

fo r m o r tg a g e p la c e m e n t s .

th at

in v e s t o r s

F u r th e r m o r e ,

co n n ected

th e r e is n o r e a s o n to b e l i e v e th a t B la n c h a r d is n o t

w ith th e p r o p o s a l are n o t o u t w e ig h e d b y b e n e fits

c a p a b le o f e x p a n d in g its m o r tg a g e o p e r a t io n s in

to th e p u b lic .

G e o r g ia e v e n

A p p lic a n t

a n d th e

is

an

a d v erse e ffe c ts

a g g r e s iv e ,

w e ll - m a n a g e d ,

g r o w t h o r ie n t e d o r g a n iz a t io n w h ic h c le a r ly h a s th e
c a p a b ility a n d r e s o u r c e s to e x p a n d




de

novo

its

in th e a b s e n c e o f a ffilia tio n

w ith

A p p lic a n t.
F o r t h e s e r e a s o n s , w e w o u ld d e n y th is a p p lic a ­
tio n .

FEDERAL RESERVE BULLETIN □ JUNE 1974

462

O rder

S E C U R I T Y B A N C O R P , I N C .,

o f c r e d it a c c id e n t an d h e a lth in s u r a n c e h a v e b e e n

S O U T H G A T E , M IC H IG A N

e s t a b lis h e d y e t . D u e to th e u n c e r t a in ty su r r o u n d in g

A

B

p p r o v in g

ankers

A c q u is it io n

U

of

th e p r o p o s a l
n it e d

L if e I n s u r a n c e C o m p a n y

h e a lth

to

u n d e r w r ite c r e d it

in s u r a n c e ,

th e

B oard

a c c id e n t

cannot

an d

a c c u r a te ly

a s s e s s w h e t h e r b e n e fits to th e p u b lic w ill r e s u lt

S e c u r it y B a n c o r p , I n c ., S o u t h g a t e , M ic h ig a n ,

fr o m

A p p lic a n t ’s e n g a g in g

in

th e a c t iv it y .

A c­

a b a n k h o ld in g c o m p a n y w it h in th e m e a n in g o f

c o r d in g ly , th e B o a r d c a n n o t a p p r o v e th e c r e d it

th e B a n k H o ld in g C o m p a n y A c t , h a s a p p lie d fo r

a c c id e n t a n d h e a lth p o r tio n o f th e a p p lic a tio n .

th e B o a r d ’s a p p r o v a l u n d e r § 4 ( c ) ( 8 ) o f th e A c t

C r e d it lif e a n d c r e d it a c c id e n t a n d h e a lth in s u r ­

Y to

a n c e is g e n e r a lly m a d e a v a ila b le b y b a n k s an d

a c q u ir e a ll o f th e v o t in g sh a r e s o f U n ite d B a n k e r s

o th e r le n d e r s an d is d e s ig n e d to in s u r e r e p a y m e n t

L if e

a

o f a lo a n in th e e v e n t o f d e a th o r d is a b ilit y o f

in

a b o r r o w e r . In c o n n e c t io n w it h th is a d d itio n o f

a n d 2 2 5 . 4 ( b ) ( 2 ) o f th e B o a r d ’s R e g u la t io n
In s u r a n c e

C om pany,

c o m p a n y to b e o r g a n iz e d

P h o e n ix ,

A r iz o n a ,

d e n o v o to e n g a g e

th e u n d e r w r it in g , a s r e in s u r e r , o f c r e d it lif e an d

c r e d it

c r e d it a c c id e n t an d h e a lth in s u r a n c e in c o n n e c t io n

d e r w r itin g to th e lis t o f p e r m is s ib le a c t iv it ie s fo r

w ith e x t e n s i o n s o f c r e d it b y A p p l ic a n t ’s s u b s id i­

b a n k h o ld in g c o m p a n i e s , th e B o a r d h a s sta te d th at

a r ie s . S u c h a c t iv it y h a s b e e n d e t e r m in e d b y th e
B o a r d to b e c l o s e l y r e la te d to b a n k in g ( 1 2 C F R
2 2 5 .4 ( a ) ( 1 0 ) ) .
N o t i c e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity
fo r in te r e s te d

p e r s o n s to su b m it c o m m e n t s

an d

v i e w s o n th e p u b lic in te r e s t f a c t o r s , h a s b e e n d u ly
p u b lis h e d ( 3 9 F e d e r a l R e g is te r 1 0 4 9 6 ) . T h e tim e
fo r filin g c o m m e n t s a n d v i e w s h a s e x p ir e d , an d
n o n e h a s b e e n t im e ly

r e c e iv e d . T h e B o a r d

has

li f e

an d

c r e d it

a c c id e n t

and

h e a lth

un­

T o a s s u r e th a t e n g a g in g in th e u n d e r w r itin g o f c r e d it life a n d
c r e d it a c c id e n t a n d h e a lth in s u r a n c e c a n r e a s o n a b ly b e e x p e c te d
to b e in th e p u b lic in te r e s t, th e B o a r d w ill o n ly a p p r o v e
a p p lic a tio n s in w h ic h a n a p p lic a n t d e m o n s tr a te s th a t a p p r o v a l
w ill b e n e fit th e c o n s u m e r o r r e s u lt in o th e r p u b lic b e n e fits .
N o r m a lly , s u c h a s h o w in g w o u ld b e m a d e b y a p r o je c te d
r e d u c tio n in r a te s o r in c r e a s e in p o lic y b e n e fits d u e to b a n k
h o ld in g c o m p a n y p e r f o r m a n c e o f th is s e r v ic e .

A p p lic a n t h a s sta te d th at it w il l p r o v id e c r e d it lif e
in s u r a n c e at ra tes to c o n s u m e r s at 3 .3

p er c e n t

c o n s id e r e d th e a p p lic a tio n in lig h t o f th e fa c to r s

b e lo w th e m a x im u m rate o f 6 0 c e n t s a u th o r iz e d

set

b y M ic h ig a n . T h e B o a r d b e li e v e s th at a r e d u c tio n

fo r th

in

§ 4 (c )(8 )

of

th e

A ct

(1 2

U .S .C .

1 8 4 3 (c )).

o f th is m a g n it u d e o f th e p r ic e o f c r e d it li f e in su r ­

A p p lic a n t c o n t r o ls o n e b a n k , S e c u r it y B a n k an d

a n c e is a c o n s id e r a t io n f a v o r a b le to th e p u b lic

T r u st C o m p a n y , S o u t h g a t e , M ic h ig a n , w ith d e ­

in te r e s t. T h e B o a r d c o n c lu d e s , t h e r e f o r e , that su c h

p o s it s o f $ 3 5 4 m illio n r e p r e s e n t in g a b o u t 1 .5 p er
in

p u b lic b e n e f it, in th e a b s e n c e o f a n y e v i d e n c e in
th e r e c o r d in d ic a tin g th e p r e s e n c e o f a n y a d v e r s e

C o m p a n y w i l l b e fo r m e d u n d e r A r iz o n a la w as

th e a p p lic a tio n to u n d e r w r ite c r e d it lif e in s u r a n c e .

cent o f

to ta l

d e p o s it s

in

c o m m e r c ia l

banks

M ic h ig a n .1

sta tu to r y f a c to r s , p r o v id e s s u p p o r t fo r a p p r o v a l o f

a fu ll r e s e r v e l if e in s u r a n c e c o m p a n y . S in c e C o m ­
pany

w ill

be

d ir e c t ly o n l y

q u a lifie d
in

to

A r iz o n a ,

u n d e r w r ite
its

a c t iv it ie s

in s u r a n c e
w i ll

be

B ased

upon

th e f o r e g o i n g

e r a tio n s r e fle c te d

and

o th e r c o n s i d ­

in th e r e c o r d , th e

Board

has

d e t e r m in e d th a t th e b a la n c e o f th e p u b lic in te r e st

lim it e d to a c t in g a s r e in s u r e r o f c r e d it lif e an d

fa c to r s th e B o a r d is r e q u ir e d to c o n s id e r u n d e r §

c r e d it a c c id e n t an d h e a lth in s u r a n c e p o l i c i e s m a d e

4 ( c ) ( 8 ) is f a v o r a b le . A c c o r d i n g l y , th e a p p lic a tio n

a v a ila b le in c o n n e c t io n w ith e x t e n s io n s o f c r e d it

to u n d e r w r ite c r e d it l if e in s u r a n c e is h e r e b y a p ­

b y A p p lic a n t ’s s u b s id ia r ie s lo c a t e d in M ic h ig a n .

p r o v e d . T h is d e t e r m in a t io n is s u b j e c t to th e c o n ­

S u c h in s u r a n c e w o u ld b e d ir e c t ly u n d e r w r itte n b y

d itio n s se t fo rth in § 2 2 5 . 4 ( c ) o f R e g u la t io n Y

an in su r e r q u a lifie d to u n d e r w r ite in M ic h ig a n an d

an d to th e B o a r d ’s a u th o r ity to r e q u ir e s u c h m o d i­

w i l l th e r e a fte r b e a s s ig n e d o r c e d e d to C o m p a n y

fic a tio n or t e r m in a tio n o f th e a c t iv it ie s o f a h o ld in g

u n d e r a r e in s u r a n c e a g r e e m e n t . H o w e v e r , at th is

c o m p a n y o r a n y o f its s u b s id ia r ie s a s th e B o a r d

tim e th e d ir e c t w r ite r h a s n o t q u a lifie d in M ic h ig a n

fin d s

to u n d e r w r ite c r e d it a c c id e n t an d h e a lth in s u r a n c e .

p r o v is io n s a n d p u r p o s e s o f th e A c t a n d th e B o a r d ’s

A p p lic a n t

has

in d ic a te d

th a t

it

m ay

be

so m e

m o n t h s b e f o r e c o n tr a c tu a l a r r a n g e m e n ts w ill b e
f i n a l i z e d b e t w e e n C o m p a n y a n d th e d ir e c t u n d e r ­

w r ite r . M o r e o v e r , n o r a te s fo r th e u n d e r w r itin g

n ecessa ry

r e g u la t io n s

and

to

a ssu re

orders

c o m p lia n c e

is s u e d

w ith

th e r e u n d e r

or

th e
to

p r e v e n t e v a s io n t h e r e o f .
T h e tr a n s a c tio n s h a ll b e m a d e

n o t la ter th an

th r e e m o n th s a fte r th e e f f e c t i v e d a te o f t h is O rd er
u n le s s s u c h p e r io d is e x t e n d e d f o r g o o d c a u s e b y
th e B o a r d

'All banking data are as of June 30, 1973.




or b y

th e F e d e r a l R e s e r v e

C h ic a g o p u r su a n t to d e le g a t e d a u th o r ity .

B ank

of

463

LAW DEPARTMENT

B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e
M ay 17, 1974.

o f th is a p p lic a t io n , a ffo r d in g o p p o r tu n it y fo r in te r ­
e s t e d p e r s o n s to s u b m it c o m m e n t s a n d v i e w s o n
th e p u b lic in te r e s t f a c t o r s , h a s b e e n d u ly p u b lis h e d

V o tin g fo r th is a c tio n : V ic e C h a ir m a n M itc h e ll a n d G o v e r ­
n o rs B r im m e r , S h e e h a n , B u c h e r , H o lla n d , a n d W a llic h . A b ­
s e n t a n d n o t v o tin g : C h a ir m a n B u rn s .

( 3 9 F e d e r a l R e g is t e r 8 6 6 0 ) . T h e t im e fo r filin g
c o m m e n t s a n d v i e w s h a s e x p ir e d .

( S ig n e d ) T h e o d o r e E . A l l i s o n ,

T h e B o a r d h a s c o n s id e r e d e a c h o f th e a p p lic a ­

A s s i s t a n t S e c r e t a r y o f th e B o a r d .

t io n s a n d a ll c o m m e n t s r e c e iv e d in th e lig h t o f

[s e a l]

th e f a c to r s s e t fo r th in e a c h o f th e r e s p e c t iv e A c t s .
U n io n B a n k ( $ 5 9 m illio n d e p o s i t s ) , 1 a s u b s id i ­

ORDER UNDER BANK MERGER ACT
AND SECTION 4 (c)(8 ) OF BANK
HOLDING COMPANY ACT

ary o f B a n k s o f I o w a , is th e la r g e s t o f fiv e b a n k in g
o r g a n iz a t io n s in th e O t tu m w a b a n k in g m a r k e t ( a p ­
p r o x im a t e ly b y W a p e l lo C o u n ty ) a n d h o ld s a b o u t

U N IO N B A N K A N D T R U ST C O M P A N Y ,

5 3 p er c e n t o f th e to ta l c o m m e r c ia l b a n k d e p o s it s

B A N K S O F I O W A , I N C .,

in th at m a r k e t. A s th e la r g e s t b a n k in g o r g a n iz a t io n

O T T U M W A , IO W A
O rder
B ank

D

A c q u is it io n

e n y in g

and

A c q u is it io n

in th e m a r k e t, U n io n B a n k h o ld s m o r e th a n t w i c e
th e a m o u n t o f d e p o s it s

A

of

sset s

of

In su r a n c e A gency

of

la r g e s t b a n k in g

a s h e ld

o r g a n iz a t io n .

by

th e s e c o n d

E ld o n

B ank,

th e

fo u r th la r g e s t b a n k in g o r g a n iz a t io n in th e s a m e

O t tu m w a ,

m a r k e t, h o ld s to ta l d e p o s it s o f $ 3 . 4 m i ll io n , r e p ­

I o w a ( “ U n io n B a n k ” ) , a m e m b e r S ta te b a n k o f

r e s e n tin g 3 p e r c e n t o f th e m a r k e t ’s to ta l d e p o s i t s .

t h e F e d e r a l R e s e r v e S y s t e m a n d a s u b s id ia r y o f

C o n s u m m a tio n

B a n k s o f I o w a , I n c . , C e d a r R a p id s , I o w a ( “ B a n k s

w o u ld r e s u lt in U n io n B a n k c o n t r o llin g a b o u t 5 6

o f I o w a ” ) , h a s a p p lie d fo r th e B o a r d ’s a p p r o v a l

p e r c e n t o f th e d e p o s i t s , t h e r e b y

p u r su a n t to

a lr e a d y h ig h

U n io n

B ank

a n d T r u st

th e

B ank

C om pany,

M erger

A ct

(1 2

U .S .C .

of

th e

a c q u is it io n ,

th e refo re,

fu r th e r in g th e

l e v e l o f c o n c e n t r a t io n

o f b a n k in g

1 8 2 8 ( c ) ) o f th e a c q u is it io n o f c e r ta in a s s e t s a n d

r e s o u r c e s in th e m a r k e t. In its c o n s id e r a tio n o f th is

t h e a s s u m p t io n o f c e r ta in lia b ilit ie s o f T h e F ir st

a p p lic a t io n , th e B o a r d r e g a r d s s u c h an in c r e a s e

N a t io n a l B a n k

in c o n c e n t r a t io n a s an a d v e r s e fa c to r .

o f E ld o n , E ld o n , I o w a

( “ E ld o n

B a n k ” ). A s a n in c id e n t to th e p r o p o s a l, th e p r e s e n t

U n io n

Bank

o p e r a te s

one

o f fic e

in

A gency,

o f fic e o f E ld o n B a n k w o u ld b e c o m e a b ra n c h o f

I o w a , a b o u t 1 0 m i le s n o r t h w e s t o f E ld o n , a n d fo u r

U n io n B a n k . A s r e q u ir e d b y th e A c t , n o t ic e o f

o f its o th e r o f fic e s a re lo c a t e d in W a p e llo C o u n ty

t h e p r o p o s e d tr a n s a c t io n , in fo r m a p p r o v e d b y th e

w it h in 2 2 m i le s o f E ld o n . U n io n

B o a r d , h a s b e e n p u b lis h e d ,

has

lo a n s a n d d e p o s it s b u s in e s s fr o m th e a r e a s e r v e d

r e q u e s te d r e p o r ts o n c o m p e t it iv e fa c to r s fr o m th e

b y E ld o n B a n k . A s n o te d b y th e D e p a r t m e n t o f

A t to r n e y

J u s t ic e

rency,

and

th e B o a r d

G e n e r a l, th e C o m p tr o lle r o f th e C u r ­

a n d th e F e d e r a l D e p o s it In s u r a n c e C o r ­

p o r a t io n .
In a r e la te d m a tte r , B a n k s o f I o w a h a s a p p lie d

in c o m m e n t s

file d

w it h

Bank

o b ta in s

th e B o a r d ,

th e

a m o u n t o f s u c h b u s in e s s d r a w n b y U n io n B a n k
fr o m th e a rea s e r v e d b y E ld o n B a n k is s u b s ta n tia l
w h e n c o m p a r e d to th e la t te r ’s o v e r a ll b u s i n e s s .

fo r th e B o a r d ’s a p p r o v a l, u n d e r s e c t io n 4 ( c ) ( 8 ) o f

T h u s,

th e

th e t w o in s t itu t io n s w o u ld b e p e r m a n e n tly e l i m i ­

B ank

H o ld in g

C om pany

A ct

(1 2

U .S .C .

m e a n in g f u l e x i s t in g

c o m p e t it io n

b etw een

1 8 4 3 ( c ) ( 8 ) ) a n d § 2 2 5 . 4 ( b ) ( 2 ) o f th e B o a r d ’s R e g ­

n a te d b y th e p r o p o s e d t r a n s a c tio n . A lt h o u g h th is

u la tio n Y , to a c q u ir e th e a s s e t s o f E ld o n In s u r a n c e

fa c to r m a y b e m in im iz e d to s o m e e x t e n t b e c a u s e

A g e n c y , E ld o n , I o w a . T h e p r o p o s e d

o f th e p r e s e n t o w n e r s h ip in te r e s t s o f d ir e c t o r s o f

s u b s id ia r y

w o u ld e n g a g e in th e a c t iv it ie s o f ( 1 ) a g e n e r a l

U n io n B a n k in E ld o n B a n k , it a p p e a r s a ls o th a t

in s u r a n c e a g e n c y in E ld o n , I o w a , a c o m m u n it y

p o te n t ia l c o m p e t it io n w o u ld b e a d v e r s e ly a f fe c te d

w it h a p o p u la t io n n o t e x c e e d i n g 5 , 0 0 0 , a n d ( 2 )

b y th e p r o p o s e d u n io n

th e s a le o f in s u r a n c e d ir e c t ly r e la te d to e x t e n s i o n s

E ld o n B a n k w o u ld b e r e m o v e d a s a b a n k in g a lte r ­

o f th e t w o

b a n k s s in c e

o f c r e d it b y a b a n k o r b a n k r e la te d firm . B a n k s

n a tiv e in th e r e le v a n t m a r k e t. C o n s u m m a tio n o f

o f Io w a

th e p r o p o s a l w o u ld r e d u c e th e n u m b e r o f b a n k in g

a ls o

p ro p o ses

to e x p a n d

th e

lin e s

of

in s u r a n c e s o ld to in c lu d e c r o p h a il in s u r a n c e a n d

a lt e r n a tiv e s a v a ila b le w it h in th e m a r k e t fr o m fiv e

l if e in s u r a n c e . S u c h a c t iv it ie s h a v e b e e n s p e c ifie d

to f o u r , a n d w o u ld p r e c lu d e th e p o s s i b il it y o f th e

b y th e B o a r d in § 2 2 5 .4 ( a ) ( 9 ) o f R e g u la t io n Y
a s p e r m is s ib le fo r b a n k h o ld in g c o m p a n ie s , s u b je c t
to B o a r d a p p r o v a l o f in d iv id u a l p r o p o s a ls in a c ­
c o r d a n c e w it h th e p r o c e d u r e s o f § 2 2 5 .4 ( b ) . N o t i c e




’Deposits for Union Bank are as of October 15, 1973, and
for Eldon Bank are as of November 19, 1973. All other banking
data are as of June 30, 1973.

464

FEDERAL RESERVE BULLETIN □ JUNE 1974

E ld o n B a n k b e in g a c q u ir e d b y o th e r s o u t s id e th e

n o t b e in g s a t is f a c t o r ily s e r v e d b y e x i s t in g fin a n c ia l

m arket

in s t itu t io n s .

or

r e m a in in g

an

in d e p e n d e n t

o r g a n i­

z a t io n — e it h e r o f w h ic h w o u ld b e p r e f e r a b le fr o m
a c o m p e t i t i v e s t a n d p o in t to th e in sta n t p r o p o s a l.
O n th e b a s is o f th e f o r e g o in g a n d a ll o th e r fa c ts

O n th e b a s is o f a ll r e le v a n t f a c t s c o n t a in e d in
th e r e c o r d , a n d in lig h t o f th e fa c to r s se t fo rth
in th e B a n k M e r g e r A c t ( 1 2 U . S . C . 1 8 2 8 ( c ) ) , it

in th e r e c o r d , th e B o a r d c o n c lu d e s th a t th e p r o ­

is th e B o a r d ’s j u d g m e n t th at th e a n t ic o m p e t it iv e

p o s a l w o u ld in c r e a s e th e l e v e l o f b a n k in g c o n c e n ­

e f f e c t s o f th e p r o p o s e d a c q u is it io n

tr a tio n to an u n d e s ir a b le l e v e l , e lim in a t e e x i s t i n g

w e ig h e d b y c o n s id e r a t io n s r e la t in g to th e c o n v e n ­

are n o t o u t ­

c o m p e t it io n b e t w e e n th e in s t itu t io n s in v o l v e d , an d

i e n c e a n d n e e d s o f th e c o m m u n it y to b e s e r v e d .

have

T h e B o a r d c o n c l u d e s , t h e r e f o r e , th a t th e p r o p o s e d

s ig n if ic a n t ly

a d verse

e ffe c ts

on

p o te n tia l

c o m p e t it io n w it h in th e O t tu m w a b a n k in g m a r k e t.

tr a n s a c tio n is n o t in th e p u b lic in te r e st a n d , a c ­

A c c o r d i n g l y , u n le s s s u c h a n t ic o m p e t it iv e e f f e c t s

c o r d in g ly , th e a p p lic a tio n is h e r e b y d e n ie d .

are c le a r ly o u t w e i g h e d in th e p u b lic in te r e s t b y

T h e c o n c u r r e n t a p p lic a tio n b y B a n k s o f I o w a ,

th e p r o b a b le e f f e c t o f th e tr a n s a c tio n in m e e t in g

p u r su a n t to § 4 ( c ) ( 8 ) o f th e B a n k H o ld in g C o m ­

th e c o n v e n i e n c e a n d n e e d s o f th e c o m m u n it ie s to

pany A c t,

b e s e r v e d , th e s ta tu te r e q u ir e s d e n ia l o f th e a p p li­

h o ld in g c o m p a n y o f U n io n

B a n k to o p e r a te an

in s u r a n c e

on

c a t io n .
T h e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s o f U n io n
B ank

are

f a v o r a b le .

s a t is f a c t o r y
A lt h o u g h

an d
E ld o n

its

p r o sp e c ts

B ank

a p p ea r

has not

seek s
agen cy

B oard

ap p roval b y

b u s in e s s

th e

th e p a ren t

p r e m is e s

of

E ld o n B a n k . In v i e w o f th e B o a r d ’s d e n ia l o f th e
a p p lic a tio n b y U n io n B a n k to a c q u ir e th e a s s e t s

b een

o f E ld o n B a n k a n d th e f a c t th a t a b a n k h o ld in g

o p e r a te d a g g r e s s i v e l y , its fin a n c ia l a n d m a n a g e r ia l

c o m p a n y is n o t a u th o r iz e d u n d e r th e B o a r d ’s R e g ­

r e s o u r c e s a n d p r o s p e c ts are g e n e r a lly s a t is f a c t o r y .

u la tio n Y to a c t a s an in s u r a n c e a g e n t o r b ro k er

T h e r e f o r e , b a n k in g f a c to r s are c o n s is t e n t w ith a p ­

in o f fic e s o th e r th a n t h o s e in w h ic h th e h o ld in g

p r o v a l o f th e a p p lic a tio n . U n io n B a n k p r o p o s e s

c o m p a n y o r its s u b s id ia r ie s a re o t h e r w is e e n g a g e d

to im p r o v e th e p r e s e n t s e r v ic e s b e in g o f fe r e d b y

in b u s in e s s , th e a p p lic a tio n b y th e p a r e n t h o ld in g

E ld o n B a n k a n d to in tr o d u c e tru st a n d d a ta p r o ­

c o m p a n y to a c q u ir e th e E ld o n I n s u r a n c e A g e n c y

c e s sin g

is h e r e b y d e n ie d .

s e r v ic e s .

W h ile

th e p r o p o s e d

m e n ts a n d a d d itio n s in

im p r o v e ­

s e r v ic e m ig h t s e r v e th e

c o n v e n i e n c e s o f th e r e le v a n t a r e a , in th e B o a r d ’s

B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t i v e
M ay 3, 1974.

ju d g m e n t s u c h a n tic ip a te d b e n e fits w o u ld n o t b e
su ffic ie n t

to

overcom e

th e

ad verse

e ffe c ts

p r o p o s a l w o u ld h a v e o n c o m p e t it io n

th is

in th e O t ­

V o tin g f o r th is a c tio n : V ic e C h a ir m a n M itc h e ll a n d G o v e r ­
n o rs B r im m e r , S h e e h a n , B u c h e r , H o lla n d , a n d W a llic h . A b ­
s e n t a n d n o t v o tin g : C h a ir m a n B u r n s .

tu m w a b a n k in g m a r k e t. F u r th e r m o r e , th e r e is n o
e v i d e n c e in th e r e c o r d to s u g g e s t th at th e m a jo r

(S ig n e d ) C h e s t e r B . F e l d b e r g ,
[s e a l]

S e c r e t a r y o f th e B o a r d .

b a n k in g n e e d s o f th e O t tu m w a m a r k e t a rea are

O R D E R S

N O T

P R IN T E D

IN

T H IS

IS S U E

D u r in g M a y 1 9 7 4 , th e B o a r d o f G o v e r n o r s a p p r o v e d th e a p p lic a t io n s lis t e d b e l o w . T h e o r d e r s h a v e
b e e n p u b lis h e d in th e F e d e r a l R e g is t e r , a n d c o p i e s o f th e o r d e r s are a v a ila b le u p o n r e q u e s t to P u b lic a t io n s
S e r v i c e s , D i v i s i o n o f A d m in is tr a t iv e S e r v ic e s , B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m ,
W a s h in g t o n , D .C . 2 0 5 5 1 .
O R D ER S UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT—
APPLICATION FOR FORMATION OF BANK HOLDING COMPANY
F ederal

A p p lic a n t

C h e m ic a l F in a n c ia l C o r p o r a t io n ,
M id la n d , M ic h ig a n
H ig h P la in s B a n k C o r p .,
K i o w a , C o lo r a d o




B ank

C h e m ic a l B a n k a n d T r u st C o m ­

E ffe c tiv e

R e g is te r

D a te

c ita tio n

5 /2 0 /7 4

3 9 F .R . 1 8 7 1 7

5 /2 0 /7 4

3 9 F .R . 1 8 7 1 9

5 /2 9 /7 4

p a n y , M id la n d , M ic h ig a n
T h e K io w a S ta te B a n k ,
K i o w a , C o lo r a d o

5 /2 9 /7 4

LAW DEPARTMENT

465

F ederal
A p p lic a n t

H ills d a le D e v e l o p m e n t C o r p o r a ­
t io n , H i l l s d a l e , I llin o is
K orea E x ch a n g e B an k ,
S e o u l, K orea

B ank

O ld F a r m e r s & M e r c h a n ts S ta te

E ffe c tiv e

R e g is te r

D a te

c ita tio n

5 /2 3 /7 4

3 9 F .R . 1 9 5 3 8

5 /3 1 /7 4

3 9 F .R . 2 0 4 2 3

5 /2 3 /7 4

3 9 F .R .

6 /3 /7 4

B a n k , H i l ls d a le , I llin o is
K o r e a E x c h a n g e B a n k o f C a l i­
f o r n ia , L o s A n g e l e s , C a lif o r n ia

M c N e e , I n c . , G r a in fie ld ,
K a n sa s
R e d lin e I n s u r a n c e , I n c .,
W a K e e n e y , K a n sa s
R e p u b lic N e w Y o r k C o r p o r a tio n ,
N e w Y o rk , N e w Y ork
S o u th w e st K a n sa s B a n c S h a r e s,
I n c . , H u t c h in s o n , K a n s a s
S w e d lu n d M a n a g e m e n t C o .,
M u rray, N eb rask a
T h e T o k a i B a n k , L t d .,
N a g o y a , Japan

T h e C it iz e n s S ta te B a n k ,

6 /1 0 /7 4

G r a in fie ld , K a n s a s
T h e T r e g o - W a K e e n e y S ta te B a n k ,

5 /2 2 /7 4

3 9 F .R . 1 9 2 8 6

5 /2 9 /7 4

3 9 F .R . 2 0 1 0 6

5 /2 2 /7 4

3 9 F .R . 1 9 2 8 5

5 /2 2 /7 4

3 9 F .R . 1 9 2 8 6

5 /1 7 /7 4

3 9 F .R . 1 8 3 3 6

W a K e e n e y , K a n sa s
R e p u b lic B a n k , N a t io n a l A s s o c i a ­

5 /3 1 /7 4

t io n , N e w Y o r k , N e w Y o r k
T h e F ir st N a t io n a l B a n k o f M e a d e ,

6 /6 /7 4

M e a d e , K a n sa s
T h e M u r r a y S ta te B a n k ,

5 /3 1 /7 4
5 /3 1 /7 4

M urray, N eb rask a
T h e T o k a i B a n k o f C a lif o r n ia ,

19538

6 /3 /7 4

5 /2 4 /7 4

L o s A n g e l e s , C a lif o r n ia
O R D ER S UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK

F ederal
A p p lic a n t

B a r n e tt B a n k s o f F lo r id a , I n c .,
J a c k s o n v i l l e , F lo r id a
C e n tr a l B a n c o m p a n y ,
J e f fe r s o n C i t y , M is s o u r i

B a n k (s)

S o u th e r n N a t io n a l B a n k o f P a lm

E ffe c tiv e

R e g is te r

d a te

c ita tio n

5 /2 9 /7 4

3 9 F .R . 2 0 1 0 4

5 /1 4 /7 4

3 9 F .R .

6 /6 /7 4

B e a c h C o u n t y , L a k e W o r t h , F la .
T h e B o o n e C o u n ty N a t io n a l B a n k

17893

5 /2 1 /7 4

o f C o lu m b ia , C o lu m b ia ,
M is s o u r i

F e d e r a te d C a p ita l C o r p o r a t io n ,
H o u sto n , T e x a s

T h e G u a r a n ty S ta te B a n k o f N e w

5 /1 7 /7 4

3 9 F .R . 1 8 3 3 6
5 /2 4 /7 4

B r a u n f e ls , N e w B r a u n f e ls ,
T exas

F ir st B a n c G r o u p o f O h io , I n c .,
C o lu m b u s , O h io
F ir st I n te r n a tio n a l B a n c s h a r e s ,
I n c ., D a lla s , T e x a s
F ir st V ir g in ia B a n k s h a r e s C o r ­

T h e C it iz e n s B a u g h m a n N a t io n a l
T h e F ir st N a t io n a l B a n k in C l e ­

R o c k y M o u n t , R o c k y M o u n t,

V ir g in ia

V ir g in ia

M ia m i, F lo r id a

3 9 F .R . 1 7 1 3 6

5 /1 3 /7 4

3 9 F .R . 1 7 8 9 4

5 /2 9 /7 4

3 9 F .R . 2 0 1 0 5

5 /1 3 /7 4
5 /2 1 /7 4

b u r n e , C le b u r n e , T e x a s
T h e P e o p le s N a t io n a l B a n k o f

p o r a t io n , F a lls C h u r c h ,
S o u th e a s t B a n k in g C o r p o r a tio n ,

5 /6 /7 4

B a n k , S id n e y , O h io

E dge w ood B ank,

6 /6 /7 4
5 /3 0 /7 4

3 9 F .R . 2 0 1 0 4

5 /1 3 /7 4

3 9 F .R . 1 7 8 9 6

5 /1 5 /7 4

3 9 F .R . 1 8 1 6 1

5 /2 3 /7 4

3 9 F .R . 1 9 5 4 0

6 /6 /7 4

J a c k s o n v i ll e , F lo r id a
S o u th e a s t N a t io n a l B a n k o f N o r th

5 /2 1 /7 4

D a d e , D a d e C o u n t y , F lo r id a
T e x a s C o m m er ce B a n csh a res,
I n c ., H o u sto n , T e x a s
U S T C o r p .,
B o s to n , M a ssa c h u se tts
W y o m i n g B a n c o r p o r a tio n ,
C h e y e n n e , W y o m in g




S o u th e a s t B a n k ,
H o u sto n , T ex a s
M ilt o n B a n k a n d T r u st C o m p a n y ,

5 /2 3 /7 4

B o s t o n , M a s s a c h u s e tt s
B an k o f W y o m in g , N .A .,
S h e r id a n , W y o m in g

6 /3 /7 4
5 /3 /7 4

3 9 F .R .

16935

5 /1 0 /7 4

FEDERAL RESERVE BULLETIN □ JUNE 1974

466

ORDER UNDER SECTION 3(a)(5) OF BANK HOLDING COMPANY A C T APPLICATION TO MERGE BANK HOLDING COM PANIES
F ederal
A p p lic a n t

B a n k H o ld in g C o m p a n y

R e p u b lic N e w Y o r k C o r ­

K in g s L a f a y e t te C o r p o r a t io n ,

p o r a t io n , N e w Y o r k , N e w Y o r k

E ffe c tiv e

R e g is te r

d a te

c ita tio n

5 /2 9 /7 4

3 9 F .R . 2 0 1 0 6

N e w Y ork , N e w Y ork

6 /6 /7 4

O R D ER S UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT—
APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES
F ederal
N o n b a n k in g C o m p a n y

E ffe c tiv e

R e g is te r

(o r a c tiv ity )

d a te

c ita tio n

5 /2 0 /7 4

3 9 F .R . 1 8 7 1 7

5 /1 7 /7 4

3 9 F .R . 1 8 3 3 4

5 /1 3 /7 4

3 9 F .R . 1 8 1 5 9

A p p lic a n t

C h e m ic a l F in a n c ia l C o r p o r a tio n ,

W e s t l e y ’s D a ta P r o c e s s in g , I n c .,

M id la n d , M ic h ig a n

M id la n d , M ic h ig a n

C h e m ic a l N e w Y o r k C o r p o r a tio n ,
N e w Y o r k , N e w Y ork

5 /2 9 /7 4

T h e G a lb r e a th M o r t g a g e C o m ­
p a n y , C o lu m b u s , O h io

F B T B a n c o r p , I n c .,

5 /2 4 /7 4

C r o m w e ll C a p ita l C o r p o r a tio n ,

S o u th B e n d , I n d ia n a

P ly m o u t h , I n d ia n a

F id e lit y C o r p o r a tio n o f P e n n s y l­
v a n ia , R o s e m o n t , P e n n s y lv a n ia
F ir st U n i o n , In c o r p o r a te d ,

5 /2 3 /7 4

N e w Y o r k U r b a n S e r v ic in g C o . ,

5 /3 /7 4

I n c ., N e w Y o r k C it y , N e w Y o r k
5 /1 5 /7 4

3 9 F .R . 1 8 1 6 0

5 /3 1 /7 4

3 9 F .R . 2 0 4 3 3

S t. L o u is , M is s o u r i

I n g a lls In s u r a n c e A g e n c y , I n c .,
I n g a lls , K a n s a s

16930

5 /1 0 /7 4

P r e fe r r e d L if e I n s u r a n c e C o m p a n y ,

S t. L o u is , M is s o u r i

3 9 F .R .

5 /2 3 /7 4

I n g a lls In s u r a n c e A g e n c y ,
I n g a lls , K a n s a s

6 /1 0 /7 4

M cC une A g en cy ,
M o n te z u m a , K a n sa s
M c N e e In s u r a n c e A g e n c y ,

M c N e e , I n c .,
G r a in fie ld , K a n s a s

5 /2 3 /7 4

3 9 F .R . 1 9 5 3 8

5 /2 9 /7 4

3 9 F .R . 1 8 7 2 0
5 /1 7 /7 4

5122114-

3 9 F .R .

G r a in fie ld , K a n s a s

S e c u r ity B a n c o r p , I n c .,

6 /3 /7 4

U n ite d B a n k e r s L if e In s u r a n c e

S o u t h g a t e , M ic h ig a n

C o m p a n y , P h o e n i x , A r iz o n a

S w e d lu n d M a n a g e m e n t C o . ,

B & W E n t e r p r is e s , I n c .,

M urray, N eb rask a

M urray, N eb rask a
O R D E R S

IS S U E D

BY

19286

5 /3 1 /7 4

FE D E R A L R E S E R V E

B A N K S

D u r in g M a y 1 9 7 4 , a p p lic a tio n s w e r e a p p r o v e d b y th e F e d e r a l R e s e r v e B a n k s u n d e r d e le g a t e d a u th o r ity
a s lis t e d b e l o w . T h e o r d e r s h a v e b e e n p u b lis h e d in th e F e d e r a l R e g is t e r , a n d c o p i e s o f th e o r d e r s
are a v a ila b le u p o n r e q u e s t to th e R e s e r v e B a n k .
O R D ER S UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK
F ederal
A p p lic a n t

T h e C o n if e r G r o u p I n c .,
W o r c e ste r , M a ssa c h u se tts




Bank

M e r c h a n ts B a n k an d
T r u st C o m p a n y o f
C ape C od , C ape C od ,
M a s s a c h u s e tt s

R eserve

E ffe c tiv e

R e g is te r

B ank

d a te

c ita tio n

B o sto n

5 /1 6 /7 4

3 9 F .R . 1 8 7 1 8
5 /2 9 /7 4

467

LAW DEPARTMENT

F ederal
B ank

A p p lic a n t

M u ltib a n k F in a n c ia l C o r p .,
B o s t o n , M a s s a c h u s e tt s

S e c u r it y N a t io n a l B a n k

R eserve

E ffe c tiv e

R e g is te r

B ank

d a te

c ita tio n

5 /9 /7 4

3 9 F .R . 1 7 8 9 5

B o s to n

o f S p r in g fie ld , S p r in g ­

5 /2 1 /7 4

f ie ld , M a s s a c h u s e t t s
M id la n tic B a n k s , I n c .,
N e w a r k , N e w J ersey

T h e F ir st N a t io n a l B a n k

N e w Y ork

5 /2 0 /7 4

o f C ranbury, C ranbury,

3 9 F .R . 1 9 8 1 6
6 /4 /7 4

N e w Jersey
U n io n C o m m e r c e C o r p o r a ­
t io n , C l e v e l a n d , O h io

P o rt C lin to n N a t io n a l

C le v e la n d

5 /1 0 /7 4

B a n k , P o rt C lin t o n ,

3 9 F .R . 1 7 8 9 7
5 /2 1 /7 4

O h io
H a m ilt o n B a n c s h a r e s , I n c .,
C h a tta n o o g a , T e n n e s se e
L a n d m a r k B a n k in g C o r ­

F ir st A m e r ic a n B a n k ,
C e n tr a l B a n k o f P a lm

p o r a tio n o f F lo r id a ,

B e a c h C o u n ty , W e st

F o rt L a u d e r d a le , F lo r id a

P a lm B e a c h , F lo r id a ,




A tla n ta

5 /1 7 /7 4

3 9 F .R . 1 8 7 1 8

A tla n ta

5 /6 /7 4

3 9 F .R . 1 7 5 9 4

M e m p h is , T e n n e s s e e

a n d N o r th w o o d B a n k o f
W e s t P a lm B e a c h , W e s t
P a lm B e a c h , F lo r id a

5 /2 1 /7 4
5 /1 7 /7 4

Announcements
RESIGNATION OF MR. BRIMMER A S MEMBER OF
THE BO ARD OF G O VERNO RS
G o v e r n o r A n d r e w F . B r im m e r , a M e m b e r o f th e
B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s ­
tem ,

has

announced

h is

r e s ig n a tio n

fr o m

th e

B o a r d , e f f e c t i v e A u g u s t 3 1 , to a c c e p t a t e a c h in g
B r im m e r ’s

le tte r

S o , a fte r 11 y e a r s o f F e d e r a l G o v e r n m e n t s e r ­
v i c e — a n d fo r a n u m b e r o f p e r s o n a l r e a s o n s — I f e e l
th at I m u s t retu rn to p r iv a te li f e .
S in c e r e ly y o u r s ,

p o s i t i o n at H a r v a r d U n iv e r s it y .
G overn or

im p a r tia l s u p p o r t o f w h a t I b e l i e v e is th e b e s t
p r o f e s s io n a l sta ff in th e F e d e r a l G o v e r n m e n t . I a m
e s p e c i a l ly in d e b te d to a n u m b e r o f its in d iv id u a l
m e m b e r s fo r su p p o r t o v e r th e y e a r s .

of

r e s ig n a tio n

to

s /A n d r e w F . B r im m e r

P r e s id e n t N i x o n a n d th e P r e s id e n t ’s le tte r o f a c ­
c e p t a n c e f o l lo w :

T H E W H IT E H O U S E
June 3 , 1974

M ay 14, 1974
D e a r M r . P r e s id e n t:

D e a r G o v e r n o r B r im m e r :

P le a s e a c c e p t m y r e s ig n a tio n a s a M e m b e r o f
th e B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e
S y s t e m . I f it is c o n v e n ie n t to th e G o v e r n m e n t , I
w o u ld lik e to c o n t in u e as a M e m b e r o f th e B o a r d
th r o u g h A u g u s t 3 1 , 1 9 7 4 . E f f e c t iv e S e p te m b e r 1,
1 9 7 4 , I w i l l j o in th e F a c u lt y o f H a r v a r d U n i v e r ­
s i t y ’s G r a d u a te S c h o o l o f B u s i n e s s A d m in is tr a t io n
lo c a t e d in B o s t o n , M a s s a c h u s e t t s .

It is w ith g r e a t p e r s o n a l r e g r e t a n d a s e n s e o f re a l
a n d s u b s ta n tia l l o s s to t h e p u b lic s e r v ic e th a t I
a c c e p t y o u r r e s ig n a tio n a s a M e m b e r o f th e B o a r d
o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , e f ­
f e c t iv e A u g u s t 3 1 , 1 9 7 4 , a s y o u r e q u e s te d .

W h e n P r e s id e n t L y n d o n B . J o h n s o n d is c u s s e d
w it h m e th e p o s s i b il i t y o f h is n o m in a t in g m e fo r
m e m b e r s h ip o n th e B o a r d , h e a s k e d w h e t h e r — if
I w e r e a p p o in t e d — I w o u ld r e m a in a r e a s o n a b le
le n g t h o f t im e . I to ld h im th a t I w o u ld s e r v e a
r e a s o n a b le p e r io d o f t im e — a lt h o u g h I m ig h t n o t
b e a b le t o r e m a in fo r a f u ll 1 4 - y e a r te r m . A t th at
t im e (in la te F e b r u a r y 1 9 6 6 ) I w a s 3 9 y e a r s o l d ,
a n d I w a s p la n n in g to retu rn in th e f a ll o f th a t
y e a r to m y p o s t at th e U n iv e r s it y o f P e n n s y lv a n ia
fr o m w h ic h I w a s o n le a v e o f a b s e n c e . I h a d
a lr e a d y s e r v e d n e a r ly th r e e y e a r s in th e F e d e r a l
G o v e r n m e n t — first a s D e p u t y A s s is t a n t S e c r e ta r y
a n d th e n a s A s s is t a n t S e c r e ta r y fo r E c o n o m ic
A ffa ir s in th e D e p a r t m e n t o f C o m m e r c e . B y th e
e n d o f n e x t A u g u s t , I w i l l h a v e s e r v e d a lm o s t 8 V2
y e a r s a s a M e m b e r o f th e F e d e r a l R e s e r v e B o a r d .
In th e ju s t o v e r 6 0 - y e a r li f e o f th e F e d e r a l R e s e r v e
S y s t e m , th e a v e r a g e te n u r e o n th e B o a r d h a s b e e n
a p p r o x im a t e ly s e v e n y e a r s .
In le a v i n g th e B o a r d , I w o u ld lik e to s tr e s s th a t
I a m n o t r e s ig n in g b e c a u s e o f a n y p o l i c y d i s ­
a g r e e m e n t s w it h m y c o ll e a g u e s o n th e B o a r d . I
h a v e f o u n d m y s e r v ic e b o th e x h ila r a t in g a n d
h ig h ly s a t i s f y i n g . T o s e r v e a s a M e m b e r o f th is
B o a r d is tr u ly a ra re— a n d p e r h a p s u n iq u e — p r iv i­
l e g e . T h e s t r a t e g ic im p o r ta n c e o f th e F e d e r a l R e ­
s e r v e ’s r o le in n a tio n a l e c o n o m i c p o l i c y is s e lf e v id e n t . D u r in g m y y e a r s o n th e B o a r d , th e r e h a s
b e e n a lm o s t a c o m p l e t e c h a n g e in m e m b e r s h ip ,
b u t th e sp ir it o f n o n p a r tis a n c o o p e r a t io n a n d c o m ­
m itm e n t to th e fu r th e r a n c e o f th e N a t i o n ’s in te r e s t
o n th e p a rt o f M e m b e r s h a s n o t c h a n g e d at a ll.
A n d in c a r r y in g o u t th e a s s ig n m e n t g i v e n to u s
b y th e C o n g r e s s , w e h a v e h a d t h e d e d ic a t e d a n d




In d o in g s o , I w a n t y o u to k n o w o f m y d e e p
a p p r e c ia tio n fo r y o u r d e d ic a t e d a n d h ig h ly c a p a b le
w o r k o n th e B o a r d . I a m p a r tic u la r ly p le a s e d b y
y o u r c o m m e n t th a t, a lt h o u g h n e a r ly th e e n tir e
B o a r d h a s c h a n g e d s i n c e y o u j o in e d it in 1 9 6 6 ,
th e r e h a s b e e n n o c h a n g e in its n o n p a r tis a n c o m ­
m itm e n t to th e n a tio n a l in te r e s t . In a p p o in t in g f iv e
o f th e B o a r d ’s s e v e n M e m b e r s , I h a v e e n d e a v o r e d
to p e r p e tu a te th at d e d ic a t io n to th e p u b lic in te r e s t
a n d to th e w e l l - b e i n g o f th e N a t i o n ’s e c o n o m y
w h ic h c h a r a c t e r iz e s th e B o a r d a n d e a c h o f its
M e m b e r s , a n d I v a lu e y o u r j u d g m e n t th at w e h a v e
b e e n s u c c e s s fu l.
T h e ra p id an d f u n d a m e n ta l c h a n g e in th e w o r ld
e c o n o m y w h ic h w e h a v e e x p e r ie n c e d in r e c e n t
y e a r s h a s m a d e it e s p e c i a l ly im p o r ta n t th a t th e
le a d e r s o f o u r c e n tr a l b a n k s u b s c r ib e to w h a t
C h a ir m a n B u r n s a n d fo r m e r C h a ir m a n M a r tin h a v e
d e s c r ib e d a s th e B o a r d ’s “ i n d e p e n d e n c e w it h in th e
G o v e r n m e n t .” T h r o u g h o u t y o u r e l e v e n y e a r s o f
s e r v ic e to th e D e p a r t m e n t o f C o m m e r c e a n d to
th e F e d e r a l R e s e r v e S y s t e m , y o u h a v e a b ly
b le n d e d th e c o m b in a t io n o f p e r s o n a l i n d e p e n d e n c e
a n d in s t itu t io n a l r e s p o n s ib ilit y w h ic h th a t p h r a s e
s o a p tly c o m m u n ic a t e s , t h e r e b y e a r n in g m y h ig h ­
e s t e s t e e m a n d th e a d m ir a tio n a n d r e s p e c t o f e a c h
o f y o u r c o ll e a g u e s .
A s y o u d ep a rt to j o in th e H a r v a r d f a c u lt y , I h o p e
y o u w i l l a lw a y s l o o k b a c k w it h g r e a t p r id e o n th e
o u ts t a n d in g c o n t r ib u t io n s y o u h a v e m a d e t o a m o r e
e ffic ie n t a n d r e s p o n s ib le G o v e r n m e n t a n d to th e
im p r o v e d w e ll - b e in g o f a ll o u r f e l l o w c it iz e n s .
Y o u m a y b e su r e y o u ta k e w ith y o u m y w a r m
b e s t w i s h e s fo r y o u r c o n t in u e d s u c c e s s a n d fo r th e
g o o d h e a lth a n d h a p p in e s s o f y o u r f a m ily .
S in c e r e ly ,
s /R ic h a r d N i x o n

469

470

FEDERAL RESERVE BULLETIN □ JUNE 1974

CHANGE IN BOARD STAFF

•

I n t e r lo c k in g r e la t io n s h ip s a re n o t to la st m o r e

th a n 5 y e a r s ; a n d
T h e B o a r d o f G o v e r n o r s h a s a n n o u n c e d th e p r o ­
m o t io n

of

Jam es

R.

K u d lin s k i

fr o m

A s s is t a n t

D ir e c t o r to A s s o c i a t e D ir e c t o r in th e D iv i s i o n o f
F e d e r a l R e s e r v e B a n k O p e r a t io n s .

•

T h e B o a r d m a y d e t e r m in e o th e r te r m s a n d

c o n d it io n s in s p e c if ic c a s e s in a d d itio n t o , o r in
lie u o f , th e a b o v e .
T h e B o a r d a ls o a d o p te d a n in te r p r e ta tio n o f its
a m e n d m e n t to R e g u la t io n L s e tt in g fo r th c r ite r ia

DIRECTOR OF FEDERAL RESERVE BANK
E dw ard

J.

Sch n u ck ,

C h a ir m a n

of

th e

th a t m a y b e u s e d in d e s ig n a t in g a “ l o w i n c o m e
Board,

S c h n u c k M a r k e t s , B r id g e t o n , M is s o u r i, w a s a p ­
p o in te d C la s s C d ir e c t o r , C h a ir m a n , a n d F e d e r a l
R e s e r v e A g e n t o f th e F e d e r a l R e s e r v e B a n k o f S t.
L o u i s , e f f e c t i v e M a y 2 2 , 1 9 7 4 , to s u c c e e d th e la te
F r e d e r ic M . P e ir c e , C h a ir m a n o f th e B o a r d , G e n ­
er a l A m e r ic a n L if e I n s u r a n c e C o m p a n y , S t. L o u i s ,
M is s o u r i.

or o th e r e c o n o m i c a l l y d e p r e s s e d a r e a . ” T h e B o a r d
sa id s u c h an a r e a is o n e , w it h o u t r e g a r d to p o lit ic a l
o r o th e r s u b d i v i s i o n s o r b o u n d a r ie s , th a t h a s s o m e
o r a ll o f th e f o l l o w i n g c h a r a c t e r is tic s :
•

A ra te o f u n e m p lo y m e n t s u b s ta n t ia lly a b o v e

th e n a tio n a l a v e r a g e .
•

A

m e d ia n

le v e l

o f f a m ily

in c o m e

s ig n if i­

c a n t ly b e lo w th e n a tio n a l m e d ia n .
•

T h e e c o n o m y o f th e a r e a h a s t r a d itio n a lly

b e e n d o m in a t e d b y o n e o r t w o in d u s t r ie s a n d t h e s e

CH AN G ES IN REGULATIONS L AND Y

are in a sta te o f lo n g - t e r m d e c li n e .
T h e B oard o f G overn ors has a n n ou n ced tw o reg u ­
la to r y c h a n g e s d e s ig n e d to a id th e d e v e lo p m e n t
o f b a n k s in l o w

in c o m e

o r o th e r e c o n o m ic a l ly

•

L a b o r a n d c a p it a l a re l e a v in g th e a r e a to a

su b s ta n tia l d e g r e e .
•

T h e a r e a is a d v e r s e ly a f fe c te d b y c h a n g in g

in d u s tr ia l t e c h n o lo g y .

d e p r e s se d a rea s, e ffe c tiv e Ju n e 2 0 , 1 9 7 4 .
O n e o f t h e r e g u la t o r y a m e n d m e n t s m a k e s an
e x c e p t i o n u n d e r R e g u la t io n L to p e r m it in t e r lo c k ­

•

T h e a r e a is a d v e r s e ly a f fe c te d b y c h a n g e s in

n a tio n a l d e f e n s e p r o d u c tio n o r f a c i lit ie s .

in g p e r s o n n e l r e la t io n s h ip s , u n d e r c e r ta in c o n d i ­
t i o n s , in l o w i n c o m e or d e p r e s s e d a r e a s . G e n e r ­
a l l y , d ir e c t o r s , o f fic e r s , a n d e m p lo y e e s o f m e m b e r
b a n k s a re p r o h ib ite d fr o m h o ld in g s im ila r p o s it io n s
in a n o th e r b a n k , s a v in g s in s t it u t io n , o r tru st c o m ­
p a n y in th e s a m e , o r a d ja c e n t, c o m m u n i t ie s .
T h e s e c o n d m a k e s an e x c e p t i o n u n d e r R e g u l a ­
tio n Y t o p e r m it a b a n k h o ld in g c o m p a n y

th a t

p r o v id e s b a n k m a n a g e m e n t c o n s u lt in g a d v ic e to
a n u n a ffilia te d b a n k in a d e p r e s s e d o r l o w in c o m e
a r e a to h a v e in t e r lo c k in g p e r s o n n e l r e la t io n s h ip s
w it h th e n o n a ffilia te d b a n k . In g e n e r a l, R e g u la t io n
Y d o e s n o t p e r m it a b a n k h o ld in g c o m p a n y to g i v e
m a n a g e m e n t c o n s u lt in g a d v ic e to a n o n a ffilia te d

PO STPO NEM ENT OF AMENDMENT
TO REGULATION T
T h e B o a r d o f G o v e r n o r s h a s p o s t p o n e d u n til J a n ­
u a ry 2 ,

1 9 7 5 , th e e f f e c t iv e d a te o f a r e g u la to r y

am en dm ent

th a t

w i ll

w it h d r a w

p e r m is s io n

fo r

b r o k e r s o r d e a le r s t o s e l l c e r ta in k in d s o f i n v e s t ­
m e n t c o n tr a c t s e c u r it ie s o n c r e d it. ( S e e B u l l e t i n
fo r J a n u a r y 1 9 7 4 , p . 6 3 . )
T h e a c t io n w a s t a k e n to p r o v id e t im e fo r th e
S e c u r it ie s a n d E x c h a n g e C o m m is s io n to r e c e iv e
a n d r e v ie w c o m m e n t s o n a p r o p o s a l to a m e n d its
r e g u la t io n s g o v e r n in g th e s a m e ty p e s o f s e c u r it ie s .

b a n k if th e r e a re in te r lo c k in g p e r s o n n e l r e la t io n ­
s h ip s .
I n t e r lo c k in g p e r s o n n e l w ill b e p e r m itt e d o n l y
u p o n th e f o l l o w i n g c o n d itio n s :
•

Any

d ir e c t o r ,

o ffic e r ,

or

REVISIONS IN MONEY STOCK
AND RELATED M E A SU R ES
M o n e y s t o c k a n d r e la te d m e a s u r e s , s h o w n in th e

e m p lo y e e

of

a

t a b le s o n p a g e A - 1 4 o f t h is B u l l e t i n , h a v e b e e n

m e m b e r b a n k m a y b e a d ir e c to r , o f fic e r , o r e m ­

r e v is e d to r e fle c t n e w

p l o y e e o f n o t m o r e th a n o n e o th e r b a n k , lo c a t e d

m e m b e r b a n k s a v a ila b le f r o m th e D e c e m b e r 3 1 ,

b e n c h m a r k d a ta fo r n o n ­

o r to b e lo c a t e d , in a lo w in c o m e o r e c o n o m ic a l ly

1973,

d e p r e s s e d a rea ;

a g e n c ie s a n d b r a n c h e s , a s w e l l a s b e n c h m a r k a d ­

•

T h e in t e r lo c k in g r e la t io n s h ip is n e c e s s a r y to

p r o v id e m a n a g e m e n t o r o p e r a t in g e x p e r t is e ;
•

c a ll

report

and

fr o m

re p o r ts

of

ju s t m e n t s a n d s e a s o n a l fa c to r r e v is io n s

f o r e ig n
fo r th e

n o n b a n k th r ift in s t it u t io n s c o m p o n e n t o f M 3. R e ­

T he're a re n o m o r e th a n th r e e in t e r lo c k in g

v is io n s f o r M i a n d M 2 a f fe c t 1 9 7 3 d a ta a n d fo r

r e la t io n s h ip s b e t w e e n a n y t w o b a n k s , a n d in te r ­

M 3 a f fe c t fig u r e s b a c k to 1 9 5 9 . D e t a ile d d a ta a re

l o c k i n g p e r s o n n e l d o n o t c o n s t it u t e a m a jo r ity o f

a v a ila b le f r o m th e B a n k in g S e c t io n o f th e B o a r d ’s

th e b o a r d o f d ir e c to r s o f th e b a n k b e in g a s s is t e d ;

D iv i s i o n o f R e s e a r c h a n d S ta t is t ic s .




471

ANNOUNCEMENTS

PUBLICATION OF ANNUAL REPORT
T h e S ix t ie t h A n n u a l R e p o r t o f t h e B o a r d o f G o v ­

ADMISSION OF STATE BANK TO
MEMBERSHIP IN THE
FEDERAL RESERVE SYSTEM

e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , c o v e r in g
o p e r a t io n s fo r t h e c a le n d a r y e a r 1 9 7 3 , is a v a ila b le

T h e f o l l o w i n g b a n k w a s a d m itte d to m e m b e r s h ip

fo r d is t r ib u tio n .

in th e F e d e r a l R e s e r v e S y s t e m d u r in g th e p e r io d

C o p ie s m a y b e

o b ta in e d

upon

r e q u e s t to P u b lic a t io n s S e r v i c e s , D i v i s i o n o f A d ­

M a y 1 6 , 1 9 7 4 , th r o u g h J u n e 1 5 , 1 9 7 4 :

m in is tr a tiv e S e r v i c e s , B o a r d o f G o v e r n o r s o f th e
F ed eral

R eserve

20551.




S y stem ,

W a s h in g t o n ,

D .C .

Florida
T am pa

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

M e t r o p o lita n B a n k

Industrial Production
R e le a se d for publication Ju n e 14

I n d u s tr ia l p r o d u c tio n in c r e a s e d b y an e s tim a te d 0 . 4

INDUSTRIAL PRODUCTION

SEASONALLY ADJUSTED, RATIOSCALE, 1967=100

p e r c e n t in M a y , f o l lo w i n g a r e v is e d 0 . 3 p e r c e n t
g a in in A p r il. B o t h th e M a r c h a n d A p r il in d e x e s
w e r e r e v is e d u p w a r d b y 0 . 2 p e r c e n t . T h e M a y
in d e x at 1 2 5 . 4 p e r c e n t o f th e 1 9 6 7 a v e r a g e w a s
0 . 4 p e r c e n t a b o v e a y e a r e a r lie r . O u tp u t o f c o n ­
s u m e r g o o d s a n d b u s in e s s e q u ip m e n t r o s e in M a y ,
a n d p r o d u c tio n o f m a te r ia ls w a s u n c h a n g e d .
A u t o a s s e m b li e s r o s e a lm o s t 3 p e r c e n t fu r th er
in M a y a n d w e r e at a n a n n u a l ra te o f 7 . 7 m i ll io n
u n its .

C ar

s c h e d u le s

fo r

June

in d ic a te

a n o th e r

in c r e a s e in p r o d u c tio n . O u tp u t o f o th e r d u r a b le a n d
n o n d u r a b le c o n s u m e r g o o d s a ls o

rose

in M a y .

P r o d u c tio n o f b u s in e s s e q u ip m e n t r o s e 0 . 8 p e r c e n t
fu r th er a n d w a s 7 p e r c e n t a b o v e a y e a r e a r lie r .
The

in d u s tr ia l

e q u ip m e n t

se c to r

r e g is te r e d

th e

m a jo r g a in s in o u tp u t . P r o d u c tio n o f c o n s t r u c t io n
p r o d u c ts w a s u n c h a n g e d , a n d o u tp u t o f g e n e r a l
b u s in e s s s u p p lie s in c r e a s e d .
O u tp u t o f ir o n a n d s t e e l m ill p r o d u c ts is e s t i ­
m a te d to h a v e in c r e a s e d s o m e w h a t f o l l o w in g

a

d e c l i n e in A p r il. P r o d u c tio n o f o th e r d u r a b le g o o d s
m a te r ia ls r o s e in M a y , p r im a r ily in th e a u t o m o t iv e
a n d e q u ip m e n t s u p p ly in g in d u s t r ie s . T h e s e g a i n s ,
h o w e v e r , w e r e o f f s e t b y a d e c li n e in n o n d u r a b le

F.R. indexes, seasonally adjusted. Latest figures: May.

g o o d s m a te r ia ls .

Seasonally adjusted
1967 = 100

Per cent
changes from—

1974

Industrial production

Month
ago
M ar.r

Apr . p

May e

Total ....................................................
Products, total ............................................
Final products .........................................
Consumer goods ................................
Durable goods ..............................
Nondurable goods .......................
Business equipment .........................

124.5
122.0
120.4
127.9
128.0
127.9
128.0

124.9
122.5
121.0
128.6
130.9
127.7
128.6

125.4
123.4
122.0
129.5
133.1
128.2
129.6

.4
.7
.8
.7
1.7
.4
.8

Intermediate products ...........................
Construction products .....................
Materials .......................................................

127.6
129.0
128.4

127.9
129.5
128.9

128.1
129.5
128.9

.2
0
0

''Revised.

Preliminary.




Per cent changes, annual rate
1974

1973

Yeai
ago
Q3

Q4

.4
.4
1.0
- 1 .7
- 6 .0
.2
6.8

6.1
3.9
4.3
1.8
-8 .8
6.6
11.2

.9
1.3
3.3
1.2
- 4 .0
3.1
8.0

- 6 .9
- 6 .7
- 7 .5
- 1 2 .1
- 2 7 .2
- 6 .1
1.3

- 1 .8
- 2 .0
.5

4.0
6.9
8.4

- 4 .8
- 5 .6
.3

- 5 .2
- 5 .7
- 7 .0

Q ir

'’Estimated.

473

Financial and Business Statistics

C O N T E N T S
A

3

G U ID E

A

3

S T A T IS T IC A L

TO

TA BU LA R

P R E S E N T A T IO N

R E L E A S E S :

R E F E R E N C E

U .S . S T A T I S T I C S :
A

4

M em ber b an k
an d

re la te d

re se rv e s,

F e d e ra l

A

7

F e d e r a l f u n d s — M a jo r r e s e r v e

A

8

R e se rv e

B ank

A

9

R e se rv e

re q u ire m e n ts

A

10

M a x im u m

A

11

O p en

A

12

F ed eral

A

13

B ank

B ank

c ity

b an k s

in te re s t r a te s

in te re s t r a te s ;

m a rg in

re q u ire m e n ts

m a rk e t a c c o u n t
R e se rv e

B an k s

d e b its

A

14

M oney

A

15

B ank

A

16

C o m m e rc ia l b a n k s , b y c la s s e s

A

20

W e e k ly

A

25

B u s in e s s

s to c k

re se rv e s;

b an k

re p o rtin g
lo a n s

c re d it

b an k s

of b an k s

A

26

D em an d

A

27

L oan

A

2 7

O p en

A

28

In te re s t ra te s

A

31

S e c u rity

A

32

S to c k

A

3 2

S a v in g s

A

34

F e d e r a l fin a n c e

A

3 6

U .S . G o v e r n m e n t s e c u r i t i e s

A

3 9

F e d e ra lly

A

40

S e c u rity

A

43

B u s in e s s

A

4 4

R ea l e s ta te

A

4 7

C o n s u m e r c re d it




R e se rv e

ite m s

d e p o s it o w n e rs h ip

s a le s

by

b an k s

m a rk e t p a p e r

m a rk e ts

m a rk e t c re d it
in s titu tio n s

sp o n so re d

c re d it a g e n c ie s

is s u e s
fin a n c e
c re d it

Continued on next page




FEDERAL RESERVE BULLETIN □ JUNE 1974

U .S . S T A T I S T I C S — C o n t i n u e d
A

50

In d u s tria l p r o d u c tio n

A

52

B u s in e s s

A

52

C o n s tru c tio n

a c tiv ity

A

54

L a b o r fo rc e , e m p lo y m e n t, a n d

A

55

C o n s u m e r p ric e s

A

55

W h o le s a le

A

56

N a tio n a l p r o d u c t a n d

A

58

F lo w

u n e m p lo y m e n t

p ric e s
in c o m e

of fu n d s

IN T E R N A T IO N A L

S T A T IS T IC S :

A

6 0

U .S . b a l a n c e

A

61

F o re ig n

A

61

U .S . r e s e r v e

A

6 2

U .S . g o l d

A

63

In te rn a tio n a l c a p ita l tr a n s a c tio n s

A

77

C e n tra l b a n k

A

77

O p en

A

78

F o re ig n

A

79

G o ld

A

80

of th e

ex c h an g e

re se rv e s

P U B L IS H E D

B a n k in g

o ffic e s

an d

g ro u p s,

b an k s

d e p o s its

c o m m e rc ia l b a n k s ,

A

84

B y c la s s

A

86

By

A

92

B y s iz e

A

94

of b an k s

h o ld in g

1973:

1973:
d iv id e n d s :

of bank

F ed eral

R e se rv e

d is tric t

of b ank
an d

d is tric t

T O

in

d iv id e n d s

In c o m e ra tio s , b y c la s s o f b a n k

IN D E X

g o v e rn m e n ts

D ecem b er 31, 1973

In co m e, e x p e n s e s , a n d
b an k s,

an d

P E R IO D IC A L L Y :

In co m e, e x p e n s e s , a n d

109

S ta te s

ra te s

o f c e n tra l

TA B L E S

M em ber

A

U n ite d

ra te s

m a rk e t ra te s

In su re d
84

a s s e ts

tra n s a c tio n s

co m p an y

A

o f p a y m e n ts

tra d e

S T A T IS T IC A L

TA B LE S

F e d e ra l R e se rv e

A 3

G u i d e t o T a b u la r P r e s e n t a t i o n
SYM BO LS AND ABBREVIATIONS

e
c
p
r
rp

N .S .A .

Estimated
Corrected
Preliminary
Revised
Revised preliminary

I, II,

III, IV Quarters
n.e.c.
Not elsewhere classified
A.R.
Annual rate
S.A.
Monthly (or quarterly) figures adjusted for
seasonal variation

IPC
SMSA
A
L
S
U
*

Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Sources of funds
Uses of funds
Amounts insignificant in terms of the 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 include not fully guaranteed issues) as well as
direct obligations of the Treasury. “ State and local
govt.” also includes municipalities, special districts,
and other political subdivisions.
In some of the tables details do not add to totals be­
cause of rounding.
The footnotes labeled N o t e (which always appear
last) provide (1) the source or sources of data that do
not originate in the System; (2) notice when figures
are estimates; and (3) information on other charac­
teristics of the data.

TA BLES PUBLISHED SEMIANNUALLY OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Q u a rte rly

Sales, revenue, profits, and divi­
dends of large m anufacturing
corporations ..................................

Issu e

Page

Apr. 1974

Page

Issu e

Banks and branches, num ber,
by class and State ......................

Apr. 1974

A -88— A-89

Flow of funds:
A ssets and liabilities:
1961-72 ....................................

Sept. 1973

A -71.14— A -71.28

Sept. 1973

A-70— A -7 1 .13

A -9 0

S em ian n u ally

B anking offices:
A nalysis of changes in num ber
O n, and not on, Federal Reserve
Par List, num ber ....................

A n n u a lly — C o n tin u e d

Feb. 1974

A -98

Feb. 1974

A -99

A n n u a lly

Bank holding com panies:
B anking offices and deposits of
group banks, Dec. 31, 1973

June 1974

A -80— A-83

Banking and m onetary statistics:
1 9 7 3 ...................................................

M ar. 1974

A -96— A -109

Flows:
1961-72

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

Incom e and expenses:
Federal R eserve Banks ................. Feb.
Insured com m ercial banks ....... .... June
M em ber banks:
Calendar year ........................... .....June
Incom e ratios ........................... .....June
O perating ratios ...........................June
Stock m arket credit ..........................

1974
1974

A -96— A -97
A -84— A-85

1974
1974
1973

A -84— A-93
A -94— A-99
A -96— A -101

Jan. 1974

A -9 6 — A -9 7

S t a t is t ic a l R e l e a s e s
LIST PUBLISH ED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Issu e

Anticipated schedule of release dates for individual releases




June 1974

P age

A -106

A 4

BANK

RESERVES

AND

RELATED

IT E M S

□ JU N E

1974

MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, A N D 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

Loans

Float 2

Other
F.R.
assets 3

Total 4

Gold
stock

Special
Drawing
Rights
certificate
account

Treas­
ury
cur­
rency
out­
stand­
ing

Averages of daily figures
1939—Dec...............................
1941—Dec...............................
1945_Dec...............................
1950—Dec..............................
I960—Dec...............................

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

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

1968—Dec...............................
1969—Dec...............................
1970—Dec...............................
1971—Dec...............................
1972—Dec...............................

52,529
57,500
61,688
69,128
71,094

1973—May.............................
June.............................
July..............................
Aug..............................
Sept..............................
Oct................................
Nov..............................
Dec...............................
1974—Jan................................
Feb...............................
Mar..............................
Apr...............................
May*...........................

9
78

8
5
381
142
94

83
170
652
1,117
1,665

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

17,518
22*759
201047
22^879
17^954

52,454
57,295
61,310
68,868
70,790

75
205
378
290
304

765
1,086
321
107
1,049

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

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

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

400
400
400

6,810
6,841
7,145
7,611
8,293

76,758
75,355
77,448
76,653
76,073
78,042
78,457
79,701

76,205
75,047
76,875
76,475
75,712
77,500
77,937
78,833

553
308
573
178
361
542
520
868

1,786
rl ,788
2,051
r2 ,144
1,861
rl ,465
1,399
1,298

-2,190
’•2,371
r3 ,162
r2,563
'2,925
r2,936
'2,764
3,414

960
942
1,180
1,018
889
1,122
1,078
1,079

'81,831
'80,547
'83,929
'82,443
'81,810
'83,644
'83,756
85,642

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

400
400
400
400
400
400
400
400

8,478
8,518
8,538
8,549
8,584
8,613
8,642
8,668

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

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

185
250
502
694
1,397

1,044
1,186
1,352
1,714
2,579

3,385
2,300
1,816
2,295
1,986

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

86,568
85,493
84,943
86,907
89,365

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

400
400
400
400
400

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

80,203
80,167
80,813
80,920

80,203
79,767
80,303
80,302

400
510
618

912
983
1,483
1,713

2,010
2,074
1,889
1,766

878
938
961
1,003

84,072
84,246
85,262
85,546

11 567
11,567
11,567
11,567

400
400
400
400

8,758
8,762
8,768
8,772

” i ’204’
1,032
982
1,138

2,956
3^239
4*322
4*629
5*396

Week ending—
1974—Mar. 6 .......................
13.......................
20.......................
27.......................
Apr.

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

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

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

847
190
955
693

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

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

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

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

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

400
400
400
400

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

May

1.......................
8.......................
15.......................
22*......................
29*.....................

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

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

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

2,157
1,616
1,977
3,088
3,605

1,919
1,807
1,908
2,207
1,800

1,292
1,336
1,248
879
900

88,365
88,238
89,065
90,194
89,631

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

400
400
400
400
400

8,822
8,827
8,830
8,836
8,856

81,791
82,661
84,658

8 80,483
8 81,749
8 82,777

1,308
912
1,881

1,820
1,747
3,298

1,287
1,736
1,811

1,078
1,313
1,015

86,272
87,673
91,155

11,567
11,567
11,567

400
400
400

8,813
8,844
8,859

6.......................
13.......................
20.......................
27.......................

80,156
81,726
81,461
80,176

8
8
8
9

80,156
79,696
80,331
79,781

2,030
1,130
395

846
1,627
2,163
2,033

r 2,673

2,509
2,123
2,222

915
1,023
998
1,029

'84,657
87,038
86,911
85,590

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

400
400
400
400

8,760
8,764
8,769
8,773

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

80,483
80,478
81,195
81,489

8
8
8
8

80,483
80,478
80,682
80,933

513
556

1,116
1,286
1,284
2,171

2,632
2,549
2,637
2,649

1,053
1,106
1,283
1,229

85,358
85,492
86,494
87,737

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

400
400
400
400

8,797
8,801
8,803
8,821

1.......................
8.......................
15.......................
22*.....................
29*.....................

82,425
83,125
83,670
81,473
85,253

8 81,649
8 81,916
8 82,088
9 79,840
8 82,471

776
1,209
1,582
1,633
2,782

1,869
1,923
3,500
2,980
4,710

2,955
2,380
2,714
2,516
2,104

1,395
1,330
831
946
923

88,848
89,023
91,055
88,172
93,340

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

400
400
400
400
400

8,826
8,829
8,832
8,853
8,856

End of month
1974—Mar..............................
Apr...............................
May?...........................
Wednesday
1974— Mar.

Apr.

May

1 Includes Federal agency issues held under repurchase agreements as
of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29,
1971.
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 of acceptances
on Wed. and end-of-month dates, see table on F.R. Banks on p. A-12.
See also note 2.
5 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in
full with Federal Reserve Banks in connection with voluntary participa­
tion by nonmember institutions in the Federal Reserve System’s program
of credit restraint.

Notes continued on oppositepage.

JUNE 1974 a BANK RESERVES AND RELATED ITEMS

A 5

MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued
(In millions of dollars)
Factors absorbing reservefunds
Deposits, other
than member bank
reserves,
with F.R. Banks

Cur­
rency
in
cir­
cula­
tion

Treas­
ury
cash
hold­
ings

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

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

616
592
625
615
522

50.609
53.591
57,013
61,060
66,060

756
656
427
453
350

66,726
67.609
68,382
68,394
68.592
68,909
69,927
71,646

Treas­
ury

For­
eign

Other
F.R.
ac­
counts ^

Other2, 5

Other
F.R.
lia­
bilities
and
capital 3

Member bank
reserves

With
F.R.
Banks

Period or date

Cur­
rency
and
coin6
Averages of daily figures

248
292
493
739
1,029

11,473
12,812
16,027
17,391
16,688

- 1 ,1 0 5

22,484
23,071
23,925
25,653
24,830

2,595

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

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

4,737
4,960
5,340
5,676
6,095

27,221
28,031
29,265
31,329
31,353

......................... 1968—Dec.
......................... 1969—Dec.
......................... 1970—Dec.
.......................... 1971—Dec.
......................... 1972—Dec.

2,854
2,942

'26,157
r25,777
'27,205
'27,375
'27,510
'28,458
'28,259
28,352

6,007
6,086
'6,273
6,296
6.402
6,371
'6,382
6,635

'32,336
'32,029
'33,590
'33,783
'34,020
'34,913
'34,725
35,068

......................... 1973—May
..................................... June
..................................... July
..................................... Aug.
..................................... Sept.
..................................... Oct.
......................................Nov.
......................................Dec.

713
682
699
702
699

2,904
2,932
2,998
2,985
3,168

29,396
28,574
28,450
29,469
29,821

7,192
6,601
6,450
6.402
6,607

36,655
35,242
34,966
35,929
36,486

....................... 1974—Jan.
......................................Feb.
..................................... Mar.
......................................Apr.
......................................May p

5
5
5
5

694
714
731
669

2,942
2,842
2,994
3,093

27,994
27,826
29,025
28,448

6,572
6,855
6,117
6,259

34,633
34,748
35,209
34,774

...................1974—Mar. 6
.......................................... 13
...........................................20
...........................................27

1 ,6 6 6

372
300
439
269

5
5
5
5

704
725
695
703

3,105
2,854
3,010
2,997

28,904
28,311
29,741
30,074

6,481
6,633
6,457
5,923

35,443
35,002
36,256
36,055

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

2,460
2,959
2,723
3,028
3,224

343
294
277
343
287

5
5
5
5
5

672
662
715
728
684

3,132
2,961
3,122
3,218
3,310

30,198
29,393
29,743
30,444
29,613

6,589
6,885
6,845
6,083
6,603

36,845
36,336
36,646
36,585
36,274

................................ May 1
.......................................... 8
.......................................... 15
............................................. 22*
...........................................29 p

341
298
304

1,373
2,813
3,133

366
517
429

5 673
5 697
5 667

3,262
3,129
3,395

29,838
28,795
30,898

6,481
6,589
6,652

36,377
35,442
37,608

.........................1974— Mar.
......................................Apr.
......................................May p

71,060
71,482
71,343
71,378

341
336
347
338

1,528
1,944
2,079
2,094

282
274
261
355

s
5
5
5

687
737
675
683

2,783
2,945
3,022
3,073

'28,703
30,051
29,920
28.410

6,572
6,855
6,117
6,259

36,342
36,973
36,104
34,736

.................. 1974— Mar. 6
.......................................... 13
...........................................20
...........................................27

71,762
72,633
72,723
72,310

340
313
293
287

2,426
1,277
902
2,425

264
339
368
279

5
5
5
5

748
758
670
700

2,757
2,918
2,896
3,026

27,825
28,021
29.411
29,498

6,481
6,633
6,457
5,923

34,364
34,712
35,926
35,479

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

72,329
72,975
73,204
73,099
73,488

300
305
296
292
269

2,948
2,993
2,569
4.332
2.333

544
254
358
265
315

5
5
5
5
5

705
689
749
761
642

3,180
3,009
3,131
3,244
3,644

29,634
29,594
31,547
26,999
33,472

6,589
6,885
6,845
6,083
6,603

36,281
36,537
38,450
33,140
40,133

..............................May 1
.......................................... 8
..........................................15
.........................................22 p
.........................................29*

739
1,531
1,247
920
250

353
495

360
1,194
849
1.926
1,449

225
146
145
290
272

458
458
735
728
631

413
386
346
344
349
622
340
323

4,121
2,408
3,375
1,674
792
1,718
1,772
1,892

330
266
341
300
332
266
522
406

652
698
782
838
781
5 752
5 689
5 717

2,721
2,732
2,846
2,877
2,848

70,962
70,411
71,081
72,176
72,876

349
342
334
308
286

2,488
2,972
1,803
1,712
3,000

427
293
311
328
320

5
5
5
5
5

70,577
71,193
71,286
71,117

334
330
337
335

1,927
1,794
1,324
2,317

328
277
300
307

71,366
72,008
72,616
72,308

340
326
303
288

1,889
1,354
1,299

72,048
72,463
72,997
72,959
73,062

301
299
285
278
273

71,196
72,233
73,155

2,192
2,265
2,287
2,362

2 ,8 6 6

Week ending—

End of month

Wednesday

6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning with Jan. 1963, figures are estimated except for
weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date.
7 Beginning with week ending Nov. 15, 1972, includes $450 million o f
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week o f quarter): Q l, $279




million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning
1974 Q l, $67 million Q2, $58 million.
8 Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks.
9 Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks. Also reflects securities sold, and scheduled to
be bought back, under matched sale/purchase transactions.

For other notes seeopposite page.




AND RELATED ITEMS □ JUNE 1974
RESERVES AND BORROWINGS OF MEMBER BANKS
(In millions ofdollars)
Large banks2

All member banks
Reserves

Borrowings

New York City

City o f Chicago

Other

Re­
quired

Excess1

6,462
9,422
14,536
16,364

5,011
3,390
1,491
1,027

3
5
334
142

2,611
989
48
125

192
58

540
295
14
8

5

18,527
22,267
24,915
26,766
27.774
28,993
31,164
31,134

756
452
345
455
257
272
165
219

87
454
238
765
1,086
321
107
1,049

29
41
18
100
56
34
25
-2 0

19
111
40
230
259
25
35
301

4
15
8
15
18
7
1
13

8
23
13
85
27
4
8
55

32,277
31,970
33,199
33,540
33.775
34,690
34,543
34,806

59
59
391
243
245
223
182
262

1,786
1,788
2,050
2,144
1,861
1,465
1,399
1,298

30
77
124
163
147
126
84
41

-3 5
-6 1
156
34
-6
11
27
-2 3

110
145
135
109
115
74
180
74

6
-5
30
-8
24
1
-2 4
43

12
28
67
53
62
54
28
28

-1 1 5
-7 9

36,419
35,053
34,790
35,771
36,325

236
189
176
158
161

1,044
1,186
1,352
1,714
2,579

18
17
32
50
102

65
51
21
19
-2 8

135
87
113
114
772

-4 4
-1 9
-6 1
69
25

17
18
65
41
20

-8

-5 1
43
-5 8
-2 8

32,271
32,327
32,600
32,178
32,060

233
-8 1
363
124
166

1,875
1,484
1,814
1,689
2,401

16
18
23
32
46

56
-7 5
49
33
7

222
182
123
30
144

19
-5 0
42
-2 7
27

6
33
9

-6 3
-1 3 7

11

-4 9
-8 9

34,369
34.725
34.726
34,372

257
146
369

93
80
85
84

101
-9 2
110
-5 6

192
262
224
94

-5 3

66

1,171
1,521
1,568
1,287

12
61
15
28

34,468
34,472
34,892
34,958

438
-2 8
311
472

1,478
1,303
1,488
1,039

57
45
40
35

167
-1 3 9
137
106

35,268
36,210
37,374
36,693
35,880

388
328
-8 3
259

1,210
776
988
1,182
1,220

31
19
20
13
17

80
2
59
-1 1 4
104

35,351
35,054
35,274
34,645

124
294
114
206

998
1,153
1,376
1,251

18
15
20
16

34,515
34,632
35,129
34,605

118
116
80
169

912
983
1,483
1,713

35,217
34,940
35,927
35,916

226
62
329
139

36,668
36,201
36,470
36,488
36,166

177
135
176
97
108

86

Total

Sea­
sonal

Excess

Borrow­
ings

Excess

Borrow­
ings

Excess

Borrow­
ings

owgs

1,188
1,303
418
232

3
4
46
29

100

40
92
80
180
321
28
42
264

67
50
90
6

42
-3 5
-4 2

-2
8

40
17
-2 0

28

6

-7
29

783
711
993
,227
972
748
598
435
343
446
485
572
849

779
689
689
844
963

-3 1

583
482
706
624

102
163

15
-2 3
29
30

11
11

29
-3 7
+34
81

578
421
488
363

140
271
45
183
20

-6
-4 7
16
-1 2
-5 7

141
44

24
-9 6
27

—123
144
-3 7
70

92
257

14
-2 3
-6 3
-1 7

56

19
19
35
43

-8 1
41
-4 1
10

123
11
333
31

13
-8
-3
40

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

44
41
46
52

77
-7 3
78
-1 2

34
108
107
69

-9
4
-1 9
70

189
53
101
4

2,157
1,616
1,977
3,088
3,605

74
82
94
112
114

62
-5 7
83
-5 8
14

176
134
506
993
1,449

-4 7
41
-3 9
124
-9 9

17
14
37
7
9

^ov. 15, 1972, includes $450 million o f
. Banks are allowed to waive penalties
>n with bank adaptation to Regulation J
. Beginning 1973, allowable deficiencies
statement week o f quarter): Q l, $279
12 million; Q4 million. Beginning 1974
^nation o f banks as reserve city banks
has been based on size o f bank (net
00 million), as described in the Bulletin
hown here as “Large” and “All other’*

2
-1 4

66

15

330
287
262
344
467

13

34
-3 4
-4 2
-2 4

504
420
408
458

11
66
15
21

1

-8 2
-3 6
-1 6

414
399
456
600

-1 1 0

-2 7
6

37
-1 2

-3 4
10

-6 3
-100

-3 1

570
370
515
633
824
646
703
957
,065

parallel the previous “Reserve city” and “C01
(hence the series are continuous over time).

tively

N ote .—Monthly and weekly data are av<
the month or week, respectively. Beginning
estimated except for weekly averages.
Borrowings at F.R. Banks: Based on closii
Effective Apr. 19, 1963, the Board’s Regul
ing by Federal Reserve Banks, was revised to
to meet the seasonal borrowing needs o f the

vithin
:s are
lend-

JUNE 1974 □ MAJOR RESERVE CITY BANKS

A 7

BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions of dollars, except as noted)
B asic reserve position

Less—
R eporting banks
and
week ending—

Excess
re­
serves 1

B o r­
row ings
a t F .R .
Banks

N e t—

N et
in te r­
bank
F ederal
funds
tra n s.

R elated tra n sa ctio n s w ith
U.S. G o v t, securities d ealers

In te rb a n k F ed eral funds tra n sa ctio n s

S urplus
or
deficit

G ro ss tran sactio n s

P er cent
of
avg.
required
reserves

P u r­
chases

Sales

N et tra n sa ctio n s
T o tal
tw o -w a y
tra n s ­
actio n s 2

P u r­
chases
o f net
buying
b an k s

Sales
o f net
selling
b an k s

L o an s
to
d e a le rs 3

B o r­
ro w ­
ings
fro m
d e a le rs 4

N et
lo an s

T o ta l— 4 6 b a n k s

1974—Apr.

M ay

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

278
74
296
106

593
182
665
728

14,779
16,738
17,196
13,698

- 1 5 ,0 9 4
- 1 6 ,8 4 6
- 1 7 ,5 6 5
- 1 4 ,3 2 0

9 6 .9
108.7
108.3
8 9 .4

2 1 ,4 9 0
2 2 ,7 0 0
2 2 ,1 2 4
19,837

6,711
5 ,9 6 2
4 ,9 2 8
6 ,1 4 0

5 ,8 3 2
5 ,3 8 0
4 ,4 5 4
5,401

15,658
1 7 ,320
17,671
14,436

879
582
475
738

1,463
1 ,6 1 0
1,557
1,227

604
516
432
548

859
1,094
1,1 2 5
680

1 ...........
8 ...........

77
42
80
95
64

579
360
429
473
711

12,177
12,208
12,742
11,809
10,511

- 1 2 ,6 7 9
- 1 2 ,5 2 5
- 1 3 ,0 9 2
- 1 2 ,1 8 7
- 1 1 ,1 5 7

76 .8
7 7 .0
78 .8
7 3 .5
68.1

19,231
18,909
18,783
17,221
17,391

7 ,0 5 4
6 ,7 0 2
6 ,0 4 0
5 ,4 1 2
6,881

5 ,7 0 4
5 ,8 2 0
5 ,6 5 9
5,2 5 9
6 ,0 1 6

13,527
13,090
13,123
11,962
11,375

1,350
882
380
152
865

1,467
1 ,386
1 ,316
1,888
1,794

562
591
639
742
802

906
795
678
1 ,1 4 6
993

86

249
277
216
309

476
629
636
251

15..........
22..........
29..........
8 in N e w Y o rk C ity

1974—Apr.

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

76
-3
64
4

34
79
107
55

4 ,0 7 4
5 ,2 9 4
4 ,6 9 6
2,621

- 4 ,0 3 2
- 5 ,3 7 5
-4 ,7 3 9
- 2 ,6 7 2

6 3 .6
8 5 .9
7 2 .3
4 1 .5

5 ,2 5 9
6 ,3 9 7
5,733
4 ,8 2 5

1 ,186
1,103
1 ,0 3 6
2 ,2 0 3

1,099
1,103
1,037
1,863

4 ,1 6 0
5 ,2 9 4
4 ,6 9 6
2 ,9 6 2

340

725
906
852
560

M ay

1 ...........

78
-2 7
60
-5
27

107
92
121
277

2 ,9 3 8
3 ,3 0 4
3 ,9 4 0
2 ,8 5 3
2 ,1 9 7

- 2 ,9 6 7
- 3 ,4 2 3
- 4 ,0 0 2
- 2 ,8 5 8
- 2 ,4 4 7

4 4 .2
52,1
5 9 .2
4 2 .3
3 7 .7

5,161
5,481
5,4 0 8
4 ,2 6 8
4 ,5 2 4

2 ,2 2 4
2 ,1 7 7
1,467
1,415
2 ,3 2 7

1,717
1,761
1,369
1,403
1,716

3 ,4 4 4
3 ,7 2 0
4 ,0 3 9
2 ,8 6 5
2 ,8 0 8

507
416
98
12
611

783
593
521
778
803

310
348
360
385
390

473
245
161
393
413

203
77
232
101

559
103
558
673

10,706
11,444
12,500
11,076

- 1 1 ,0 6 2
- 1 1 ,4 7 0
- 1 2 ,8 2 6
- 1 1 ,6 4 8

119.7
124.0
132.7
121.6

16,231
16,303
16,392
15,013

5 ,5 2 5
4 ,8 5 9
3 ,8 9 2
3 ,9 3 6

4 ,7 3 3
4 ,2 7 6
3 ,4 1 7
3 ,5 3 8

1 1,498
1 2,027
1 2,975
11,475

793
582
475
398

738
703
705
668

355
239
215
239

383
465
489
429

1
69
19
100
37

471
268
308
473
434

9 ,2 3 9
8 ,9 0 4
8 ,8 0 2
8 ,9 5 6
8 ,3 1 4

- 9 ,7 1 2
- 9 ,1 0 2
- 9 ,0 9 1
- 9 ,3 2 9
- 8 ,7 1 1

9 9 .2
9 3 .9
9 2 .2
9 4 .8
8 8 .2

14,070
13,429
13,375
12,953
12,868

4 ,8 3 0
4 .5 2 5
4 ,5 7 3
3 ,9 9 7
4 ,5 5 4

3 ,9 8 7
4 ,0 5 9
4 ,291
3,8 5 7
4 ,3 0 0

10,083
9 ,3 7 0
9 ,0 8 4
9 ,0 9 7
8 ,5 6 7

844
466
282
140
254

685
792
795
1,110
991

252
243
278
357
411

432
550
517
753
580

150
100

3,993
4 ,3 1 0
4,641
3 ,627

- 4 ,1 4 2
-4 ,2 9 8
-4 ,7 5 5
- 3 ,5 7 7

2 4 4.0
260.3
2 5 9.7
2 1 4.5

4 ,6 5 6
5 ,0 9 9
5 ,2 1 8
4 ,4 7 5

664
789
576
848

664
789
576
848

3,993
4 ,3 1 0
4,641
3 ,6 2 7

1 ................
29
14
-1 3
43
18

3,521
3,751
3 ,8 0 0
3,661
3,1 5 6

- 3 ,5 4 1
—3 ,722
-3 ,8 2 8
-3 ,6 1 8
—3,138

199.3
214. 5
21 5 .6
2 0 4 .5
177.3

4 ,4 0 6
4,8 1 1
4 ,7 7 8
4 ,5 9 8
4 ,291

885
1,060
978
937
1,135

885
1,053
978
937
1,045

3,521
3,7 5 8
3 ,8 0 0
3,661
3 ,2 4 7

409
103
458
673

6,713
7,1 3 4
7,8 5 9
7,4 4 9

-6 ,9 2 0
- 7 ,1 7 2
- 8 ,0 7 1
- 8 ,0 7 1

9 1 .7
9 4 .4
103.0
102.0

11,575
11,204
11,174
10,538

4 ,8 6 2
4 ,0 7 0
3 ,3 1 6
3 ,0 8 9

4 ,0 6 9
3 ,4 8 8
2,841
2 ,6 9 0

471
268
294
473
434

5,718
5,153
5 ,002
5 ,2 9 6
5,518

- 6 ,1 7 1
- 5 ,3 8 0
- 5 ,2 6 3
- 5 ,7 1 1
- 5 ,5 7 2

7 7 .0
6 7 .6
65.1
7 0 .7
6 8 .7

9 ,6 6 3
8 ,6 1 8
8 ,5 9 7
8 ,3 5 6
8 ,5 7 6

3 ,9 4 5
3 ,4 6 5
3 ,5 9 5
3 ,0 6 0
3 ,418

3 ,1 0 2
3 ,0 0 6
3 ,313
2 ,9 2 0
3 ,2 5 5

8 ...........

15..........
22..........
29..........
3 8 o u tsid e
N e w Y o r k C ity

1974—Apr.

M ay

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

1 ...........
8 ...........
15..........
22..........
29..........

5

—

in C ity o f C h ica g o

1974—Apr.

M ay

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

1 ...........
8 ...........
15..........
22..........
29..........

1

436
420
410
358

436
420
410
358

90

320
334
324
427
350

320
334
324
427
350

7 ,5 0 6
7 ,7 1 6
8 ,3 3 4
7 ,8 4 8

793
582
475
398

302
284
295
310

355
239
215
239

-5 3
45
79
71

6,561
5 ,6 1 2
5 ,2 8 4
5 ,4 3 6
5,231

844
459
282
140
164

365
458
472
683
641

252
243
278
357
411

112
215
193
326
230

7

33 oth ers

1974—Apr.

M ay

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

1 ...........
8 ...........

l

15..........
22..........
29..........

>

1 B ased u p o n reserve balances, including all ad ju stm en ts applicable to
th e rep o rtin g p erio d . P rio r to Sept. 25,1968, ca rryover reserve deficiencies,
if an y , w ere d educted. Excess reserves fo r later periods are net o f all carry­
o v er reserves.
2 D erived fro m averages fo r individual b an k s fo r entire week. Figure
for each b an k indicates ex ten t to w hich th e b a n k ’s weekly average p u r­
chases an d sales a re offsetting.
3 F ederal funds lo a n ed , n et funds supplied to each dealer by clearing




ban k s, rep u rch ase agreem en ts (p u rch ases o f securities fro m d ealers
su b ject to resale), o r o th e r lending arran g e m en ts.
4 F ed eral fu n d s b o rro w ed , n et fu n d s ac q u ired fro m each dealer by
clearing b an k s, reverse rep u rch ase ag reem en ts (sales o f securities to
dealers su bject to rep u rch ase), resale ag reem en ts, an d b o rro w in g s secured
by G o v t, o r o th e r issues.
N ote . — W eekly averages o f daily figures. F o r descrip tio n o f series
an d back d a ta , see A ug. 1964 B u l l e t in , p p . 944-74.

A 8

F.R. BANK INTEREST RATES □ JUNE 1974
CURRENT RATES
(Per cent per annum)
Loans to member banks—
Loans to all others under
last par. Sec. 133

Under Sec. 10(b)2

Under Secs. 13 and 13a i
Federal Reserve Bank
Rate on
May 31,
1974

Effective
date

Previous
rate

Rate on
May 31,
1974

Effective
date

Previous
rate

Rate on
May 31,
1974

Effective
date

Boston............
New Y ork.. . .
Philadelphia..
Cleveland. . . .
Richmond.. . .
Atlanta...........

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

30,
25,
25,
25,
25,
29,

1974
1974
1974
1974
1974
1974

7*i
7%
m
m
7*4
7*4

8*4
81/z
8*4
8 V4
8%
8i/i

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

30,
25,
25,
25,
25,
29,

1974
1974
1974
1974
1974
1974

10
10
10
10
10
10

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

30,
25,
25,
25,
25,
29,

1974
1974
1974
1974
1974
1974

Chicago..........
St. Louis.........
M inneapolis..
Kansas C ity..
D allas.............
San Francisco

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

26,
26,
26,
25,
25,
25,

1974
1974
1974
1974
1974
1974

7%
7*4
m
7%
m
7*4

8Vi
81/2
8i/i

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

26,
26,
26,
25,
25,
25,

1974
1974
1974
1974
1974
1974

10
10
10
10
10
10

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

26,
26,
26,
25,
25,
25,

1974
1974
1974
1974
1974
1974

1 Discounts o f eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase. Maximum maturity: 90 days except that discounts o f certain
bankers* acceptances and o f agricultural paper may have maturities not
over 6 months and 9 months, respectively.
2 Advances secured to the satisfaction o f the F.R. Bank. Maximum
maturity: 4 months.
3 Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully

81/2

8i/i
8Vi

Previous
rate

9*4
9^
9^
9 i/i

9Vi
9Vi
9Vi
91h.

9Vi

9 i/i
91/i
91/i

guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof. Maximum maturity: 90 days.
4 Also effective on the same dates as the other rates shown above for
the eight Reserve Banks so designated, a rate of 8 per cent was approved
on advances to nonmember banks, to be applicable in special circumstances
resulting from implementation of changes in Regulation J, which became
effective on Nov. 9, 1972. See “Announcements” on p. 942 o f the Oct.
1972 B u ll e t in and p. 994 o f the Nov. 1972 B u l l e t in .

SUM M ARY OF EARLIER CHANGES
(Per cent per annum)

Effective
date

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N .Y .

In effect Dec. 31, 1954,

1*4

1*4

1955—Apr. 14.............
15.............
May 2 .............
Aug. 4 .............
5 .............
12.............
Sept. 9 .............
13.............
Nov. 18.............
23.............

1*4-1%
1*4-1%
1%
134-2%
134- 2 %
2 -2%
2 -2%
2%
2%-2i/2
21/2

1V4
1%
1%
1%
2
2
2%
2%
2*4
2*4

1956—Apr. 13.............
20.............
Aug. 24.............
31.............

2*4-3
2%-3
2%-3
3

2%
2%
3
3

1957—Aug.

9 .............
2 3
Nov. 15............
Dec. 2 ............

3 -3*4
3V4
3 -3*4
3

3
3V4
3
3

1958—Jan. 22............
2 4
.
Mar. 7 ...........
13...........
21...........
Apr. 18...........
May 9 ...........
Aug. 15...........
Sept. 12...........
23...........
Oct. 24...........
Nov. 7 ...........

234-3
2%-3
2% -3
2%-2%
2%
134-2%
1%
13/4-2
13/4-2
2
2 -2 * i
21/2

3
2%
2%
2%
21/4
1%
1%
1%
2
2
2
2*i

Effective
date

1959—Mar.

6 ..

16..

May 29..
June 1 2 ..
Sept. 1 1 ..

18..
3 ..
1 0 ..

14..
Aug. 1 2 ..
Sept. 9..
1963—July 17. .

26..
1964—Nov. 24.,
30.,
1965—Dec.
1967—Apr.

6. ,

13.,
7..
14.,

Nov. 20.

27.
1968—Mar. 15.
22.

Apr. 19.

26.

Aug. 16.

30.
Dec. 18.
20.

1969— Apr.

4.
8.

1970—Nov. 11.
13.
16.
N ote . —Rates under Secs. 13 and 13a (as described in table and notes
above). For data before 1955, see Banking and Monetary Statistics, 1943,
pp. 439-42, and Supplement to Section 12, p. 31.




Range
(or level)—
All F.R.
Banks
2*4-3
3
3 -3i/i
3i/i

3*4-4
4
3*4-4
3 Vi-4
3Vi
3 -3 Vi
3
3 -3 Vi
3 Vi
3*4-4
4
4 -4 Vi
4*4
4

-4 Vi
4
4 - 41/2
41/2

4Vi-5
5
5 -5 Vi
5Vi

5*4-51/4
51/4
51/4-5V4

5V4
5 Vi-6

F.R.
Bank
of
N.Y.
3
3

3%
31/2
4
4
4
31/2
3 V4
3
3
31/2
3V4
4
4
41/2
4%
4
4

4Vi
4Vi
4V4
5
5Vi
5 Vi
5 Vi
51/4
5 Vi
5 Vi

6

6
6

5%-6

6

53/4-6

534
53/4

5%

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N .Y.

1...............
4 ...............
11...............

51/2-5%
5i/2-53/4

534

5*4

5 V4

8 ...............
15...............
19...............
22...............
2 9
13...............
19...............
16...............
2 3
11...............
19...............
13...............
1 7
2 4

5V4-5V4

51/4

Effective
date

1970—Dec.

1971—Jan.

Feb.
July
N ov.
Dec.

1973—Jan. 15...............
Feb. 26...............
Mar. 2 ...............
Apr. 23...............
May 4 ...............
11...............
1 8
June 11...............
15...............
July 2 ...............
Aug. 14...............
23..............
1974—Apr. 25...............
3 0
In effect May 31, 1974.

5%
-5*4
-5%
5
4%-5
4%
4*4-5
5
4*4-5
434
5
5

41/2-434

4*4-4%
4Vi
5
5 -5 Vi
5V4
51/2-534

53/4

51/2

51/4
514

5
5
5

434

5
5
5
434
434
4*4
41/4
5
5 V4
51/2
5*4
534

53/4-6
6

6
6

6

6 Vi
6V4
7
7*4
7*4

7

-6 Vi

6V4

7
- 71/2
7*4

7Vi-8
8

JU N E

1974 o R E S E R V E

R E Q U IR E M E N T S

A

9

RESERVE REQUIREM ENTS ON DEPOSITS OF MEMBER BAN KS
(Deposit intervals are in millions o f dollars. Requirements are in per cent o f deposits.)
Time 3
(all classes o f
banks)

Net demand 2
Effective
date 1

Reserve city
Over
5

0-5
In effect
Jan 1 1963...........

Other
Over
5

0-5

0-5

4
3*
16%
17

17
17 %

12
12%

12%
13

4

2-10 10-100 100-400

Over
5
1972—Nov. 9 ........
Nov. 1 6 . .. .

4

1966__July 14 21
1967—Mar. 2 ..........
Mar. 16..........
1968—Jan. 11, 1 8 ...
1969—Apr. 17...........
1970—Oct. 1 .............

Other time
0-2

Sav­
ings

5
6

8

1973—July 19.........
In effect
May 31, 1974

2*

8

10

12

7 16%
13

Over
400 5

Sav­
ings

17%

10% 12%

13%

18

10% 12%

13%

18

0-5

Over
56

83

83

85

3

3

5

5
Present legal limits :
Net demand deposits, reserve city banks...............
Net demand deposits, other banks........................
Time deposits.............................................................

1 When two dates are shown, the first applies to the change at reserve
city banks and the second to the change at country banks. For changes
prior to 1963 see Board’s Annual Reports.
2 (a) Demand deposits subject to reserve requirements are gross de­
mand deposits minus cash items in process o f collection and demand
balances due from domestic banks.
(b) Requirement schedules are graduated, and each deposit interval
applies to that part o f the deposits of each bank.
(c) Since Oct. 16, 1969, member banks have been required under
Regulation M to maintain reserves against foreign branch deposits
computed on the basis of net balances due from domestic offices to their
foreign branches and against foreign branch loans to U.S. residents.
Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident
have been excluded from computations, as have total loans o f a bank to
U.S. residents if not exceeding $1 million. Regulation D imposes a similar
reserve requirement on borrowings from foreign banks by domestic offices
of a member bank. The reserve percentage applicable to each of these
classifications is 8 per cent. The requirement was 10 per cent originally,
was increased to 20 per cent on Jan. 7,1971, and was reduced to the current
8 per cent effective June 21, 1973. Initially certain base amounts were
exempted in the computation o f the requirements, but effective Mar. 14,
1974, the last o f these reserve-free bases were eliminated. For details, see
Regulations D and M.
3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
For other notes see 2(b) and 2(c) above.
4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­
serve cities, and on the same date requirements for reserves against net
demand deposits o f member banks were restructured to provide that each
member bank will maintain reserves related to the size o f its net demand
deposits. The new reserve city designations are as follows: A bank having
net demand deposits of more than $400 million is considered to have the
character o f business o f a reserve city bank, and the presence o f the head




Time 3

Effective
date

Other time

12

161/2

Net demand 2, 4

Minimum

Maximum

10
7
3

22
14
10

office o f such a bank constitutes designation o f that place as a reserve
city. Cities in which there are F.R. Banks or branches are also
reserve cities. Any banks having net demand deposits o f $400 million or
less are considered to have the character o f business o f banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see Regulation D and appropriate sup­
plements and amendments.
5 Reserve city banks.
6 Except as noted below, effective Dec. 27, 1973, member banks are
subject to an 8 per cent marginal reserve requirement against increases
in the aggregate of (a) outstanding time deposits o f $100,000 or more,
(b) outstanding funds obtained by the bank through issuance by a bank’s
affiliate of obligations subject to the existing reserve requirements on time
deposits, and (c) funds from sales o f finance bills. The 8 per cent require­
ment applies to balances above a specified base, but is not applicable to
banks that have obligations o f these types aggregating less than $10 million.
For the period June 21 through Aug. 29, 1973, (a) included only single­
maturity time deposits. Previous requirements have been: 8 per cent for
(a) and (b) from June 21 through Oct. 3, 1973, and for (c) from July 12
through Oct. 3, 1973; and 11 per cent from Oct. 4 through Dec. 26, 1973.
For details, see Regulation D and appropriate supplements and amend­
ments.
7 The 16% per cent requirement applied for one week, only to former
reserve city banks. For other banks, the 13 per cent requirement was
continued in this deposit interval.
8 See preceding columns for earliest effective date o f this rate.
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 o f 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.

A 10

MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ JUNE 1974
MAXIMUM INTEREST RATES PAYABLE ON TIME A N D SAVINGS DEPOSITS
(Per cent per annum)

Rates beginning July 1, 1973

Rates July20, 1966—June30, 1973
Effective date
Type of deposit

July 20,
1966

Savings deposits...............
Other time deposits:1
Multiple maturity:2
30-89 days............
90 days to 1 year.,
1 year to 2 years. .
2 years or m ore...
Single-maturity:
Less than $100,000:
30 days to 1 year.,
1 year to 2 years. .
2 years and over. . ,
$100,000 or more:
30-59 days..........
60-89 days..........
90-179 days........
180 days to 1 year
1 year or more. . .

Sept. 26,
1966

Effective date

Apr. 19,
1968

Jan. 21,
1970

4

4%

5

5%

5

5V4

5
5%
5%

5%
5%
5%
6

5%

W /4

1 For exceptions with respect to certain foreign time deposits, see
for Feb. 1968, p. 167.
2 Multiple-maturity time deposits include deposits that are automati­
cally renewable at maturity without action by the depositor and deposits
that are payable after written notice of withdrawal.
3 Maximum rates on all single-maturity time deposits in denominations
of $100,000 or more have been suspended. Rates that were effective
Jan. 21, 1970, and the dates when they were suspended are:
per centl
per cent j
per cent ]
7 per cent [
7 lA per cent J
6 l/4
6 V2
6 y4

July 1,
1973
Savings deposits..............................................
Other time deposits (multiple- and single­
maturity) :
Less than $100,000:
30-89 days...........................................
90 days to 1 year.................................
1 year to 2% years..............................
2Vi years or more...............................
4 years or more in minimum denom­
ination of $1,000.........................
$100,000 or more........................................

June 24, 1970
May 16, 1973

Rates on multiple-maturity time deposits in demonination of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturity deposits was eliminated.
4Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year

5
6%
( 4)
( 3)

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.

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.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.

June
1968—Mar. 11
June
8
1970—May
1970—May
6
1971—Dec.
1971—Dec.
6
1972—Nov.
1 1974—Jan.
1972—Nov. 24
Effective Jan. 3, 1974

4 ..................
20..................
31..................
29..................
19..................
3 ..................
22..................
15..................
15..................
27..................
9 ..................
5 ..................
10..................
7 ..................

On margin stocks

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
55
65
50

50
60
50
50
50
50

70
80
65
55
65
50

N o t e . —Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit
to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is
a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference
between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective
Mar. 11, 1968.




6 'h
m

( 3>

N o t e . —Maximum rates that may be paid by member banks are estab­
lished by the Board of Governors under provisions of Regulation Q;
however, a member bank may not pay a rate in excess of the maximum
rate payable by State banks or trust companies on like deposits under
the laws of the State in which the member bank is located. Beginning
Feb. 1, 1936, maximum rates that may be paid by nonmember insured
commercial banks, as established by the FDIC, have been the same as
those in effect for member banks.
For previous changes, see earlier issues of the B u l l e t i n .

For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)

Ending
date

I*

certificates with minimum denomination of $1,000. The amount of such
certificates that a bank could issue was limited to 5 per cent of its total
time and savings deposits. Sales in excess of that amount were subject to
the 6% per cent ceiling that applies to time deposits maturing in 2% years
or more.
Effective Nov. 1, 1973, a ceiling rate of 7V4 per cent was imposed on
certificates maturing in 4 years or more with minimum denomination
of $1,000. There is no limitation on the amount of these certificates that
banks may issue.

MARGIN REQUIREM ENTS
(Per cent of market value)

Beginning
date

Nov. 1,
1973

( 3)
( 3)
( 3)
( 3)
( 3)

B u lle t in

30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more

Type of deposit

JUNE 1974 □ OPEN MARKET ACCOUNT

A 11

TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions of dollars)
Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Treasury bills 1

Others within 1 year 2

Period
Gross Redemp­ Gross
sales
pur­
tions
chases

Gross
pur­
chases
11,074
8,896
8,522
15,517

5,214
3,642
6,467
4,880

1973—Apr...
May..
June..
July..
Aug..
Sept..
Oct...
Nov..
D ec..

1,377
717
1,047
1,640
655
480
2,117
583
1,919

623
218
495
945
401
153
489
70

1,101
10

1974—Jan...
Feb..
Mar..
Apr..

1,340
768
664
1,237

335
391
566
49

1,402
410
165
407

197
197
197
197

0
1
2
3

2,160
1,064
2,545
3,405

99
1,036
125
1,396

51
600
163
60
456
564

50

Exch.,
Gross maturity Gross
sales shifts, or pur­
redemp­ chases
tions
-3 ,4 8 3
-6 ,4 6 2
2,933
-1 4 0

351
836

127
123
27

4,361
-813

Matched
sale-purchase
transactions
(Treasury bills)

197
197
197
197

0
1
2
3

Redemp­ Gross
sales
tions

Gross
sales

12,362
12,515
10,142
18,121

5,214
3,642
6,467
4,880

1,584
717
1,274

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

1,006
1,316
2,117
1,116
2,145

623
218
495
945
401
153
489
70

1974—Jan..
Feb...
Mar..
Apr..

1,519
798
854
1,409

335
391
566
49

1,666

2,160
2,019
2,862
4,592
51
600
163
60
807
1,400
1,101
10

1,402
410
165
407

12,177
16,205
23,319
45,780
2,101

Gross
pur­
chases

33,859
43,519
32,228
74,795

2,101

5,664
7,379
5,621
7,651
2,234
3,309

2,590
2,393
702

8 ,2 2 0

6,637
9,523
4,442
4,265
6,248
8,069

1 Before Nov. 1973 B u l l e t i n , included matched sale-purchase transactions, which are now shown separately.
2 Includes special certificates acquired when the Treasury borrows
directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972,
38; Aug. 1973.. 351; Sept. 1973, 836.

Net
change
in U.S.
Govt.
securi­
ties

331
35

5,105
78

51

-1 0 2

150
250
87
40
-7 8

Federal agency obligations
Repur­
chase
agree­
Sales or ments,
redemp­
net
tions

Outright
Gross
pur­
chases

4,988
8,076
-312
8,610

35

200

56

485
1,197
865

370
239

176
74
212

-276
-3
1,247
524

29
120
170
360

39
46
48
48

8,498

93
311
167
129

25

77

19
21
19
6
20
30
4
3
84

5 ,1 2 4

-1,845
685
-2,094
895

- 2 ,2 2 0

5,978
1,218
8,240 -1,3 6 7
5,621
893
6 ,6 8 6
2,076
2,492 -1 ,0 0 5
2,752
72
7,859
2,325
7,525 -1 ,3 6 0
1 0,202
1,387
4,500
4,265

Gross Exch. or
sales maturity
shifts

100

-922

33,859
44,741
31,103
74,755

Gross
pur­
chases

-4,812
-2 3

93
30
109
172

12,177
16,205
23,319
45,780

2,590
2,393
702

19
37

687

Repurchase
agreements
(U.S. Govt,
securities)

Over 10 years

Gross Exch. or
sales maturity

249
933
539
500

-1,316

680
-3 4

Gross

1,105
4,630
3,405
9,632
6,981
4,735
2,089
3,435

5,430
4,672
-1 ,4 0 5
-2,028

125
116

Gross
pur­
chases

1,105
4,630
3,405
9,632
6,981
4,735
2,089
3,435

Gross
pur­
chases

1,515
34

Period
Gross
pur­
chases

5-10 years

Gross Exch. or
sales maturity
shifts

848
1,338
789
579

-3 ,8 2 9

17

Total outright 1

1-5 years

229
174

35

25

Bankers’
acceptances,
net

Repur­
chase
agree­
ments

Out­
right
-6
22
-9
-2

101
-8 8
29
-6 5
-2 9

7
-1
-1 7
-1 2
-7
-9
8
-2
23

106
157
-9 5
-20
20
-126
-4 2

1
4
8

185
33

181
-1 4 5
-3 6

Net
change 3

4,982
8 ,8 6 6

272
9,227

1,106
-1 ,4 7 0
1,085
78
2,416
-4 1
-9 1 5
69
7
-4 6
2,440
- 3 4 -1 ,3 0 7
1,386
-2 6
-3 6
-5 2

223
—89

-328
72
1,780
789

3 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers’ acceptances.
redemptions, and negative figures reduce System holdings; all other figures increase such holdings.

N o t e . —Sales,

CONVERTIBLE FOREIGN CURRENCIES
HELD BY FEDERAL RESERVE BANKS
(In millions of U.S. dollar equivalent)
End of
period

Austrian
schillings

French
francs

German
marks

Italian
lire

Japanese
yen

Pounds
sterling

1970—Dec.............
1971—Dec.............
1972_Dec.............

257
18
192

154
3
*

*
3
*

*
*
*

98
2
164

1
1
1

1973_Feb..............
Mar........... .
Apr............
May...........
June,..........
July.............
Aue.............
„
.............
Sept.............
Oct..............
Nov.............
Dec.............

4
4
4
4
4
4
5
4
4
4
4

*
*
*
*
*
*
*
*
*

*
*
*
*
*
*
*
*

*
*
*
*
*
*
*
*
*

«
*
*
*
*
*
1
*
*
*
*

1
1
1
1
1
1
1
1
1
1
1

1974—jan..............
Feb..............

1
32

*
*

*
*

*
10

1
1




Belgian
francs

Canadian Danish
kroner
dollars

Total

*
*

20

*
*

Nether­
lands
guilders
*
20

Swiss
francs
4
8
6
3
3
3
3
3
3
3
3
3
3
3

A 12

FEDERAL RESERVE BANKS o JUNE 1974
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday

End of month

1974

Item
M ay 29

11,460
400

G o ld certificate a c c o u n t................ ......................
Special D raw ing R ights certificate ac co u n t.

M ay 22

11,460
400

M ay 15

1 1,460
400

1974
M ay

M ay 1

11,460
400

11,460
400

M ay 31

11,460
400

1973

A p r. 30

11,460
400

M ay 31

10,303
400

215

223

230

233

232

223

234

306

4 ,7 1 0

2 ,9 8 0

3 ,5 0 0

1,923

1,869

3 ,2 9 8

1,747

1 ,2 2 4

100
250

94
163

90
250

86
179

86
118

97
276

81
135

83

2,621
701

2 ,6 3 6
506

2 ,4 3 6
480

2 ,4 3 6
387

2 ,4 3 6
210

2,621
642

2 ,4 3 6
218

1,2 4 0

37,718

35 ,072

3 7 ,5 2 0

37,348

37,081

37,818

37,181

33,581

39,365
2,7 6 7

39,365
2,7 6 7

39,365
2,7 6 7

39,128
3 ,0 0 4

39 ,128
3 ,0 0 4

39,533
2,805

39,128
3 ,0 0 4

36,9 3 6
3,611

179,850
2,081

1,277,204
1,127

179,652
1,102

179,480
822

179,213
566

180,156
1,239

179,313
694

174,128

T o ta l U .S. G o v t, securities.

81,931

78,331

80 ,7 5 4

8 0 ,302

7 9 ,7 7 9

8 1,395

8 0 ,007

74,128

T o tal loans and secu rities......................
C ash item s in process o f c o lle c tio n . . .
B ank p re m is e s ............................................
O th e r assets:
D e n o m in a te d in foreign currencies.
A ll o t h e r ........................................... ..

90,313
*8,558
236

84 ,7 1 0
*7,918
235

8 7 ,5 1 0
10,384
233

85,313
7,691
233

84,498
8 ,9 8 4
232

8 8,329
* 6 ,8 5 2
236

8 4 ,624
8 ,5 0 2
231

76,675
8,5 4 9
201

16
671

6
705

6
592

6
1,091

6
1,157

63
716

6
1 ,076

4
604

*111,869

*105,657

110,815

106,427

106,969

*108,279

106,533

97 ,0 4 2

C a s h ...................................................... ........
L o a n s:
M em b e r b a n k b o rro w in g s ................
O t h e r ........................................................
A c cep tan ce s:
B o u g h t o u tr ig h t....................................
H eld u n d e r rep u rch a se agreem ents.
F ed eral agency o b lig a tio n s:
B ought o u trig h t.....................................
H eld u n d er rep u rch a se ag re e m e n ts.
U .S. G o v t, securities:
B o u g h t o u trig h t:
B ills ................................
C ertificates— Special.
O t h e r ..
N o te s .............................
B o n d s ........................... .
T o ta l b o u g h t o u trig h t.........................
H eld u n d er rep u rch a se agreem ents.

T o ta l assets.
L iabilities
F .R . n o te s ............................................... ..
D e p o s its :
M em b e r b a n k re s e rv e s .....................
U .S. T re asu ry — G en eral ac co u n t.
F o r e ig n ..................................................
O th e r:
All o th e r 3 .........................................

6 5 ,009

6 4 ,6 5 4

64,791

6 4 ,577

6 3,928

6 4 ,732

6 3 ,8 1 6

59,255

*33,472
2,333
315

*26,999
4 ,3 3 2
265

31,547
2,5 6 9
358

2 9 ,5 9 4
2,993
254

2 9 ,6 3 4
2,9 4 8
544

*30,898
3,133
429

28,795
2,813
517

2 4 ,8 9 2
3,243
289

642

761

749

689

705

667

697

692

T o tal d ep o sits.

*36,762

*32,357

35,223

3 3 ,5 3 0

33,831

*35,127

32 ,822

29,1 1 6

D eferred availability cash ite m s.............
O th e r liabilities and accrued dividends.

6 ,4 5 4
1,458

5 ,4 0 2
1,165

7 ,6 7 0
1 ,156

5,311
1 ,142

6 ,0 3 0
1,132

5,041
1,160

6,7 6 6
1,087

5,8 3 2
845

T o ta l liab ilities.............................................

*109,683

*103,578

108,840

104,560

104,921

*106,060

104,491

9 5 ,048

873
844
469

873
844
362

874
844
257

873
844
150

873
844
331

874
844
501

874
844
324

816
793
385

*111,869

*105,657

110,815

106,427

106,969

*108,279

106,533

9 7 ,0 4 2

C ap ital accounts
C a p ita l p aid i n ..........................................................................
S u rp lu s ........................................................................................
O th e r ca p ital a c c o u n ts .........................................................
T o ta l liabilities and capital a c c o u n ts ..............................
C o n tin g en t liability o n acceptances p u rch ased for
foreign c o rre s p o n d e n ts ....................................................
M ark etab le U .S. G o v t, securities held in custo d y for
foreign an d in ternational ac c o u n ts ..........................

735

716

703

706

698

732

700

384

28,1 0 4

27 ,9 2 4

27,968

27,8 2 9

2 7 ,4 8 4

2 8 ,4 5 4

27 ,3 4 9

29,9 9 4

F ederal Reserve Notes— F ederal Reserve A gents’ Accounts
F .R . n o te s o u tsta n d in g (issued to B a n k ). . .
C o llate ral held against notes o u ts ta n d in g :
G o ld certificate a c c o u n t................ ...............
U .S. G o v t, secu rities......................................

68,6 2 2

6 8 ,4 9 0

58,383

6 8 ,1 3 4

68, 012

68 ,8 2 7

68,0 1 8

6 2 ,7 9 0

2 ,2 3 5
67,515

2 ,2 3 5
67,515

2 ,2 0 0
67,495

2 ,1 5 0
6 7 ,3 9 5

2, 150
67,,195

2 ,2 3 5
67 ,515

2 ,1 5 0
67,195

2 ,0 7 5
62,1 3 5

T o tal co llateral.

69,7 5 0

6 9 ,7 5 0

69,695

6 9 ,5 4 5

69,,345

6 9 ,7 5 0

69,345

6 4 ,2 1 0

i Seenote8on p. A-5.




2Seenote9 on p. A-5.

3See note 5on p. A-4.

JUNE 1974 □ FEDERAL RESERVE BANKS; BANK DEBITS

A 13

MATURITY DISTRIBUTIO N OF LOANS AND U .S . GOVERNM ENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In m illions o f do llars)
W ednesday

E n d o f m o n th

1974

Ite m

1974

1973

M ay 29

M ay 22

M ay 15

M ay 8

M ay 1

M ay 31

4 ,7 1 0
4 ,6 4 4
66

2 ,9 8 0
2 ,9 2 3
57

3 ,4 9 9
3 ,4 2 9
70

1,923
1,8 6 6
57

1,8 6 7
1 ,8 3 0
37

3 ,2 9 8
3 ,2 1 0
88

1 ,747
1 ,709
38

1 ,225
1 ,182
43

A cceptances— T o ta l.................................................................
W ith in 15 d a y s.....................................................................
16 days to 90 d a y s................ ...............................................
91 days to 1 y e a r ......... .......................................................

350
264
86

257
176
81

340
272
68

265
201
64

204
139
62
3

373
295
78

216
150
63
3

83
33
50

U S G o v ern m en t securities— T o ta l. .................................
W ith in 15 d a y s 1............................... ...................................
16 days to 90 d a y s ...................................... ........................
91 days to 1 y e a r ...........................................
O ver 1 year to 5 y e a rs........................................................
O ver 5 years to 10 y e a rs ....................................................
O ver 10 y e a rs ........................................................................

81,931
7 ,8 8 2
2 3,4 2 9
2 1,0 0 9
19,853
7 ,8 3 6
1,922

78,331
6 ,6 2 7
2 0 ,7 7 6
2 1 ,3 1 7
19,853
7 ,8 3 6
1,9 2 2

8 0 ,7 5 4
6 ,2 2 6
18,511
2 6 ,4 0 6
19,853
7 ,8 3 6
1,9 2 2

8 0 ,3 0 2
7 ,2 1 1
18,361
2 2 ,5 5 6
2 2 ,5 1 6
7 ,8 3 6
1 ,8 2 2

7 9 ,7 7 9
6 ,921
1 8 ,5 3 4
2 2 ,1 5 0
2 2 ,5 1 6
7 ,8 3 6
1 ,8 2 2

8 1 ,3 9 5
5 ,3 9 7
2 5 ,0 6 5
2 1 ,2 2 7
19,879
7 ,8 6 7
1 ,9 6 0

8 0 ,0 0 7
5 ,3 2 7
19,917
2 2 ,5 8 9
2 2 ,5 1 6
7 ,8 3 6
1,8 2 2

7 4 ,1 2 8
2 ,8 8 5
17,998
15,541
2 6 ,8 3 2
9 ,2 4 3
1,6 2 9

F ederal agency obligations—T o t a l.....................................
W ith in 15 d a y s 1 ...................................................................
16 days to 90 d a y s ...............................................................
91 days to 1 y e a r ..................................................................
O ver 1 y ear to 5 y e a rs ........................................................
O ver 5 years to 10 y e a rs ....................................................
O ver 10 y e a rs ........................................................................

3 ,3 2 2
772
47
312
1,074
746
371

3 ,1 4 2
521
107
280
1,117
746
371

2 ,9 1 6
496
104
259
1,008
693
356

2,8 2 3
387
120
259
1,008
693
356

2 ,6 4 6
210
119
260
978
723
356

3 ,2 6 3
714
46
312
1,074
746
371

2 ,6 5 4
218
119
260
978
723
356

1,2 4 0
20
26
219
537
247
191

W ith in 15 d a y s ......................................................................
16 days to 90 d a y s ...............................................................

A p ril 20

M ay 31

1
H oldings u n d e r rep u rch a se agreem ents a re classified as m a tu rin g
w ithin 15 days in ac co rd an ce w ith m a x im u m m a tu rity o f th e agreem ents.

BANK DEBITS AN D DEPOSIT TURNOVER
(Seasonally ad ju sted a n n u a l rates)
D eb its to dem an d d ep o sit a c c o u n ts 1
(billions o f dollars)

T u rn o v e r o f d em an d deposits

P erio d
L eading S M S A ’s

226
o th e r
SM S A ’s

N .Y .

6 o th e rs 2

1973— A p r .................................... 1 5 ,9 7 1 .2
M a y .................................. 1 6 ,4 5 2 .0
J u n e .................................. 1 6 ,6 3 8 .8
Ju ly .................................... 1 7 ,2 2 4 .4
A u g .................................... 1 7 ,8 8 9 .7
S ep t................................... 1 7 ,9 1 9 .6
O c t..................................... 1 8 ,3 9 5 .3
N o v .................................... r 1 9 ,0 5 0 .2
D ec.................................... *■18,641.2

6 ,9 2 7 .5
7 ,1 7 7 .0
7 ,2 2 4 .6
7 ,3 8 1 .4
7 ,7 4 4 .6
8 ,0 2 5 .3
8 ,1 3 7 .2
8 ,4 3 7 .9
8 ,0 9 7 .7

3 ,8 5 7 .5
3 ,9 1 8 .3
4 ,0 5 0 .2
4 ,2 8 2 .4
4 ,3 1 8 .2
4 ,1 9 5 .7
4 ,4 1 8 .0
4 ,5 1 9 .8
4 ,4 6 2 .8

9 ,0 4 3 .8
9 ,2 7 5 .1
9 ,4 1 4 .3
9 ,8 4 3 .0
10,1 4 5 .1
9 ,8 9 4 .2
1 0 ,2 5 8 .0
'1 0 ,6 1 2 .2
*•10,543.5

5 ,1 8 6 .2
5 ,3 5 6 .7
5 ,3 6 4 .1
5 ,5 6 0 .7
5 ,8 2 6 .8
5 ,6 9 8 .5
5 ,8 4 0 .0
*•6,092.4
*•6,080.7

9 5 .7
9 7 .8
9 9 .9
102.6
106.2
107.4
109.5
11 3 .2
1 1 0 .2

2 2 8 .9
2 3 5 .1
2 4 5 .0
2 4 7 .5
2 5 2 .5
2 6 6 .4
2 6 5.3
2 7 4 .9
2 6 9 .8

101.9
103.7
107.6
111.7
113.6
111.6
116.4
118.6
11 5 .0

6 6 .2
6 7 .4
6 8 .7
7 1 .3
7 3 .6
7 2 .4
7 4 .7
7 7 .1
7 5 .8

5 2 .5
5 3 .6
5 4 .0
5 5 .8
5 8 .4
5 7 .5
5 8 .8
6 1 .2
6 0 .6

1974— J a n ..................................... '1 8 ,8 1 5 .7
F e b .................................... *'19,813.6
M a r.................................... •'20,167.1
A p r.................................... 2 0 ,0 8 4 .4

8 ,0 8 1 .0
8 ,8 9 6 .2
8 ,9 1 4 .4
8 ,6 3 7 .9

4 .5 1 7 .1
4 ,5 8 2 .1
4 ,7 1 8 .0
4 ,7 7 5 .1

*•10,734.8
*•10,917.4
1 1 ,2 5 2 .7
1 1 ,4 4 6 .5

*•6,217.6
*•6,335.3
*■6,534.8
6 ,6 7 1 .4

111.5
1 1 8 .0
118.2
1 1 5 .2

2 7 0 .3
2 9 4 .2
2 9 2 .5
2 7 4 .6

1 1 6 .2
1 19.9
120.8
1 19.4

7 7 .3
7 9 .3
*•80.3
80.1

6 2 .2
6 3 .7
*•64.7
6 4 .9

1 Excludes in te rb a n k an d U .S. G ovt, dem an d d ep o sit accounts.
2 B oston, P h ila d elp h ia, C hicago, D e tro it, S an F ra n c isc o -O a k la n d , an d
L os A n g eles-L o n g B each.




226
o th e r
S M S A ’s

T o ta l
233
S M S A ’s

L e ad in g S M S A ’s

T o ta l 232
S M S A ’s
(excl.
N .Y .)

T o tal 232
S M S A ’s
(excl.
N .Y .)

T o ta l
233
S M S A ’s

N .Y .

6 o th e rs 2

N o t e .— T o tal S M S A ’s includes som e cities a n d co u n ties n o t designated
as S M S A ’s.
F o r b ack d a ta see p p . 634-35 o f July 1972 B u l l e t in .

A 14

MONEY STOCK □ JUNE 1974
MEASURES OF THE MONEY STOCK
(In billions of dollars)
S easonally adjusted

N o t seasonally ad ju sted

M o n th o r week
Mi

m

2

Mz

Mi

Aia

Mz

C o m p o sitio n o f m easures is described in th e N ote below .
1971— D ec.....................................
1972— D e c .....................................

2 3 5 .2
25 5 .7

4 7 3 .0
5 2 5 .5

7 2 7 .9
8 2 2 .8

2 4 1 .9
2 6 3 .0

4 7 7 .9
5 3 0 .6

7 3 0 .9
8 2 6 .2

1973— M a y '.................................
J u n e ' .................................
J u l y '..................................
A u g .' ................................
S e p t.' ................................
O c t.' ..................................
N o v .' ................................
D e c .' .................................

2 6 2 .4
26 5 .5
2 6 6 .4
2 6 6 .3
2 6 5 .5
2 6 6 .6
2 6 9 .2
2 7 1 .4

5 4 3 .7
5 4 9 .5
552.1
555.1
5 5 6 .8
5 6 1 .9
567.3
572.1

854.1
8 6 2 .6
867.1
8 7 0 .7
8 7 3 .5
8 8 0 .3
8 8 7 .7
8 9 4 .8

2 5 7 .9
2 6 3 .6
2 6 5 .7
2 6 3 .0
2 6 4 .0
2 66.1
2 7 0 .9
279.1

5 4 1 .8
5 4 8 .9
5 5 1 .1
5 5 1 .3
5 5 4 .4
5 6 0 .1
5 6 5 .7
5 7 7 .2

8 5 3 .2
8 6 3 .6
8 6 7 .6
8 6 6 .6
8 7 0 .0
8 7 7 .2
8 8 4 .0
8 9 8 .4

1974— J a n . '...................................
F e b .' .................................
M a r .' ................................
A p r.....................................
M ay * .................................

2 7 0 .8
2 7 3 .7
2 7 6 .2
278.1
27 9 .3

5 7 5 .4
58 1 .9
5 8 6 .2
5 9 0 .2
59 2 .9

9 0 0 .4
9 0 9 .0
9 1 5 .8
9 2 1 .6
9 2 5 .0

278.1
2 7 0 .8
2 7 3 .5
2 7 9 .6
2 7 4 .5

5 8 1 .4
5 7 9 .3
5 8 5 .7
5 9 4 .6
5 9 1 .0

9 0 5 .9
9 0 6 .3
9 1 6 .5
9 2 7 .7
9 2 4 .1

2 7 6 .8

5 8 9 .6
591.3
593.1
5 9 3 .8
5 9 2 .7

2 7 5 .2
2 7 4 .9
2 7 5 .9
2 7 4 .3
2 7 1 .8

5 9 0 .8
5 9 0 .3
5 9 2 .3
5 9 0 .4
5 8 9 .4

W eek ending—
1974— M ay

1 ...........................
8 ...........................
1 5 ...........................
2 2 ............................
2 9 * .........................

2 7 8 .6
2 7 9.5
2 8 0 .6
278.1

N o te .— C o m p o sitio n o f th e m oney stock m easures is as follow s:
M i: A verages o f daily figures fo r (1) dem and deposits o f com m ercial

b an k s o th e r th a n dom estic in te rb a n k an d U .S. G o v t., less cash item s in
p rocess o f collection a n d F .R . flo a t; (2) foreign d em an d balances a t F .R .
B an ks; an d (3) currency o u tsid e th e T re asu ry , F .R . B anks, an d vaults o f
com m ercial banks.
M ?: A verages o f daily figures fo r M i plus savings deposits, tim e d e­

posits o p en acco u n t, an d tim e certificates o th e r th a n n egotiable C D ’s o f
$100,000 o f large w eekly rep o rtin g b an k s.
M z : M i plus th e average o f th e b eginning- an d en d -o f-m o n th figures
for d ep o sits o f m u tu al savings b an k s a n d fo r savings cap ital o f savings
a n d lo an asso ciatio n s.
F o r descrip tio n an d b ac k d ata, see " R ev isio n o f th e M o n ey S tock M eas­
ures a n d M em b er B an k D ep o sits” o n p p . 81-95 o f th e F eb. 1974 B u ll e tin
a n d “ A n n o u n cem en ts” on p. 470 o f th e Ju n e 1974 B u l l e t in .

CO M PO NENTS OF MONEY STOCK M EASURES A ND RELATED ITEMS
(In billions o f d ollars)
S easonally adjusted

N o t seasonally ad ju sted

C om m ercial b anks

C o m m ercial b an k s

T im e an d savings
d eposits
w eek

C u r­
re n ­
cy

D e­
m and
de­
po s­
its

C D ’s 1

O th er

T o tal

N on­
b an k
th rift
insti­
tu ­
tio n s 2

D em a n d d ep o sits
C u r­
ren ­
cy
T o tal

M em ­
b er

D om esticnonm em b er

T im e a n d savings
d ep o sits

C D ’s 1

O th e r

T o ta l

N on­
b an k
th rift
in sti­
tu ­
tio n s 2

U .S.
G o v t.
de­
p o s­
it s 3

1971- - D e c .' .
1972- - D e c .' .

5 2 .6
5 6 .9

1 82.6
198.7

3 3 .0
4 3 .4

2 3 7 .9
26 9 .9

2 7 0 .9
3 1 3 .3

2 5 4 .8
2 9 7 .2

5 3 .5
5 7 .9

1 88.4
2 05.1

1 42.6
1 52.4

4 4 .1
5 1 .4

3 3 .8
4 4 .3

2 3 6 .0
2 6 7 .6

2 6 9 .8
3 1 1 .8

2 5 3 .0
2 9 5 .6

6 .9
7 .4

1973- - M a y ' .
Ju n e ' .
J u l y '. .
A u g .' .
S e p t.r .
O c t.r .
N o v .r .
D e c .r .

5 8 .9
5 9 .4
5 9 .5
5 9 .8
6 0 .2
6 0 .5
6 1 .0
6 1 .7

2 0 3 .4
2 0 6 .2
2 0 6 .9
2 0 6 .4
2 0 5 .3
206.1
2 0 8 .2
2 0 9 .7

6 1 .3
6 2 .0
6 3 .9
6 6 .3
6 6 .7
6 3 .8
6 2 .0
6 2 .8

2 8 1 .4
28 3 .9
2 8 5.7
2 8 8.8
2 9 1 .4
295.3
298.1
3 0 0 .6

3 4 2.7
3 4 5 .9
3 4 9 .6
355.1
3 5 8 .0
359.1
360.1
3 6 3 .5

3 1 0 .4
313.1
3 1 5 .0
3 1 5 .6
3 1 6 .7
3 1 8 .5
3 2 0 .4
3 2 2 .7

5 8 .7
5 9 .4
6 0 .0
6 0 .0
6 0.1
6 0 .4
6 1 .5
6 2 .7

1 99.2
2 04.1
2 0 5 .7
2 0 2 .9
2 0 3 .8
2 0 5 .7
2 0 9 .5
2 1 6 .4

145.8
149.1
149.7
147.8
148.2
149.7
151.8
157 .0

5 1.1
5 2 .4
5 3 .2
5 2 .7
5 3 .3
5 3 .8
5 5 .1
5 6 .6

5 8 .8
5 9 .3
6 2 .3
6 8 .4
6 8 .8
6 6 .3
6 4 .1
6 4 .1

2 8 3 .9
2 8 5 .3
2 8 5 .4
2 8 8 .3
2 9 0 .5
2 9 4 .0
2 9 4 .8
298.1

3 4 2 .7
3 4 4 .7
3 4 7 .8
3 5 6 .7
3 5 9 .3
3 6 0 .3
3 5 9 .0
3 6 2 .2

3 1 1 .4
3 1 4 .7
3 1 6 .5
3 1 5 .3
3 1 5 .6
3 1 7 .0
3 1 8 .3
3 2 1 .2

8 .7
7 .1
6 .5
4 .1
5 .3
6 .0
4 .3
6 .3

1974— J a n . '. .
F e b . '.
M a r .' .
A p r .. .
M ay * .

6 1 .9
6 2 .7
6 3 .4
6 4 .0
6 4 .5

2 0 8 .9
211.1
2 1 2 .9
214.1
2 1 4 .8

6 5 .5
6 6 .6
6 7 .7
7 5 .4
8 1 .2

3 0 4 .6
30 8 .2
3 1 0 .0
312.1
3 1 3 .6

370.1
3 7 4.8
3 7 7 .7
3 8 7.4
394.8

3 2 5 .0
327.1
3 2 9 .6
33 1 .5
332.1

6 1 .6
6 1 .9
6 2 .7
6 3 .6
6 4 .3

2 1 6 .5
2 0 9 .0
2 1 0 .8
2 16.1
2 1 0 .3

1 56.4
1 5 1 .2
152.5
156 .0
151.5

5 7.1
5 5 .2
5 5 .5
5 7 .3
5 6 .0

6 6 .1
6 5 .9
6 7 .0
7 2 .4
7 7 .8

3 0 3 .4
3 0 8 .5
3 1 2 .2
3 1 4 .9
3 1 6 .5

3 6 9 .4
3 7 4 .4
3 7 9 .2
3 87.3
3 94.3

3 2 4 .5
3 2 6 .9
3 3 0 .8
3 3 3 .2
333.1

8 .0
6 .6
6 .3
6 .0
7 .5

6 3 .9
6 4 .5
6 4 .4
6 4 .6
6 4 .6

2 1 3 .0
214.1
2 15.1
2 1 6 .0
2 1 3 .5

7 8 .0
7 9 .7
8 0 .6
8 2 .0
8 2 .5

3 1 2.8
3 1 2.7
3 1 3 .6
3 1 3.3
3 1 4 .6

3 90.8
3 9 2 .4
3 9 4 .2
3 9 5 .2
397.1

6 3 .0
6 4 .5
6 4 .4
6 4 .2
6 4.1

212.1
2 1 0 .5
2 1 1 .5
210.1
2 0 7 .6

1 53.2
1 51.7
1 52.2
151.3
149 .6

56.1
5 6 .0
5 6 .6
5 5 .9
5 5 .3

7 4 .3
7 6 .0
7 6 .9
7 8 .8
7 9 .6

3 1 5 .6
3 1 5 .4
3 1 6 .4
3 1 6 .1
3 1 7 .6

3 8 9 .9
3 9 1 .4
393 .3
3 9 4 .9
3 9 7 .2

W eek e n d in g —
1974— M ay

1.
1 5 ..
2 2 ..
29*.

1 N egotiable tim e certificates o f d ep o sit issued in d en o m in atio n s o f
$100,000 o r m o re by large w eekly re p o rtin g co m m ercial ban k s.
2 A verage o f th e beginning a n d en d -o f-m o n th figures fo r deposits o f
m u tu al savings b an k s and savings c a p ital a t savings an d lo a n associatio n s.




3 A t all co m m ercial b an k s.
See also N ote above,

9 .3
11.1
7 .5
6 .5
5 .3

JUNE 1974 □ BANK RESERVES; BANK CREDIT

A 15

AGGREGATE RESERVES A N D MEMBER BANK DEPOSITS
(In billions o f d o llars)
M em b e r b a n k reserves, S .A .1

D eposits subject to reserve req u irem en ts 3
S .A .

Nonb o rro w ed

P erio d
T o tal

R e­
qu ire d

A vail­
a b le 2
T o tal

T o tal m em ber
b a n k d eposits
plus n o n d e p o sit
ite m s 4

N .S .A .
D em an d

Tim e
and
savings

P rivate

U .S.
G o v t.

T o tal

D em and

T im e
an d
savings

Priv ate

S.A .

U .S.
G o v t.

N .S.A .

1970— D e c .. ..
1971—D e c .. . .
1972— D e c .. . .

29 .1 9
3 1 .3 0
31.41

2 8 .8 6
3 1 .1 7
30.36

2 8 .9 5
3 1 .1 2
31.13

2 7 .1 0
2 8 .9 6
2 9 .0 5

321.3
360.3
4 0 2 .0

178.8
2 1 0 .4
2 4 1 .4

136.1
143.8
154.5

6 .5
6 .1
6 .1

3 2 5 .2
3 6 4 .6
40 6 .8

178.1
2 0 9 .7
2 4 0 .7

141.1
149.2
160.1

!
6 .0 I 3 3 2 .9
5 .7 ! 3 6 4 .3
6 .1
4 0 6 .4

33 6 .8
3 6 8 .7
4 1 1 .2

1973— M a y . . .
Ju n e. . .
J u l y .. . .
A u g .. ..
S ep t___
O c t........
N o v .. . .
D e c ___

3 2 .4 4
3 2 .4 6
33.58
33.91
3 4 .1 7
3 4 .9 4
3 4 .8 6
3 5 .1 0

3 0 .6 0
30.61
3 1 .62
31.74
32.32
33 .4 7
33.46
33.81

3 2 .29
3 2 .2 2
3 3 .29
33.73
33.95
3 4 .7 2
3 4 .6 2
3 4 .8 0

30.11
30.55
3 1 .3 6
3 2 .0 4
32 .3 9
3 2 .8 4
32.71
32.91

425.1
4 2 8 .9
431.1
4 3 6 .7
4 3 8 .6
4 3 9 .7
4 4 0 .4
4 4 2 .2

265.1
267.3
270.1
2 7 5 .0
2 7 7 .5
277.3
277.1
2 7 9 .0

154.8
156.3
157.1
157.0
156.2
156.4
157.5
158.3

5 .2
5 .3
3 .9
4 .8
5 .0
6 .0
5 .8
4 .9

4 2 3 .0
4 2 6 .3
4 2 9 .9
4 3 3 .7
4 3 7 .7
4 3 9 .7
4 3 8 .2
4 4 7 .5

2 6 4 .5
2 6 5 .9
2 6 8 .5
2 7 6 .6
2 7 9 .0
2 7 8 .8
2 7 6 .6
2 7 8 .5

151.4
154.8
156.2
154 .0
154.7
156.1
158.3
164 .0

7 .0
5 .6
5.1
3.1
4 .1
4 .8
3 .2
5 .0

4 3 0 .5
1 4 3 4 .5
! 4 3 7 .6
| 4 4 3 .8
4 4 5 .9
! 4 4 6 .5
: 4 4 7 .5
| 4 4 9 .6

4 2 8 .4
4 3 2 .0
4 3 6 .4
4 4 0 .8
4 4 5 .0
4 4 6 .5
4 4 5 .3
4 5 4 .9

1974— J a n ........
F e b ........
M a r .. . .
A p r .. . .
M ay*. .

35 .8 5
35.11
34 .9 5
35 .9 0
3 6 .5 0

34 .8 0
33 .9 2
33.63
3 4 .17
33.91

35.69
3 4 .9 2
34.81
35 .7 2
36.35

3 2 .8 0
32.79
3 3 .1 2
3 3 .6 6
34 .2 5

44 6 .8
447.1
4 5 0 .4
4 6 1 .6
467.1

2 8 3 .2
286.1
2 8 7.9
297.1
30 4 .2

157.4
157.9
158.8
160.0
159.1

6 .2
3 .0
3 .7
4 .5
3 .8

4 5 3 .0
4 4 7 .1
4 5 0 .4
4 6 2 .5
4 6 4 .7

28 3 .1
2 8 5 .7
2 8 8 .6
2 9 6 .2
3 0 3 .0

163.4
156.3
156.9
161.5
155.6

6 .5
5.1
4 .9
4 .8
6 .1

I
!
'
:

4 5 4 .3
4 5 4 .8
459.1
4 7 1 .2
4 7 7 .8

4 6 0 .5
4 5 4 .8
459.1
472.1
4 7 5 .5

1 A verages o f daily figures. M em ber b a n k reserve series reflects actu al
reserve req u irem en t percentages w ith n o a d ju stm en t to elim inate th e
effect o f changes in R egulations D an d M . R equired reserves w ere in ­
creased by $660 m illio n effective A pr. 16,1969, a n d $400 m illion effective
O ct. 16, 1969; were red u ce d by $500 m illion (net) effective O ct. 1, 1970. >
R eq u ired reserves were red u ce d by approxim ately $2.5 billion, effective
N o v . 9, 1972; by $1.0 billion, effective N ov. 15; an d increased by $300
m illio n effective N ov. 22.
2 R eserves available to s u p p o rt priv a te n o n b a n k deposits are defined
as (1) req u ired reserves fo r (a) private dem an d deposits, (b) to ta l tim e
an d savings d ep o sits, a n d (c) n o n d ep o sit sources subject to reserve re ­
q u ire m en ts, an d (2) excess reserves. T h is series excludes req u ired reserves
fo r n et in te rb a n k a n d U .S . G o v t, dem an d deposits.
3 A verages o f daily figures. D ep o sits subject to reserve requirem ents
include to ta l tim e a n d savings deposits an d n et dem an d deposits as defined
by R egulation D . P rivate d em and deposits include all d em and deposits

except th o se due to the U .S. G o v t., less cash item s in process o f collection
an d d em an d b alances due fro m d o m estic co m m ercial banks.
4
T o tal m em ber b a n k d ep o sits subject to reserve req u irem en ts, plus
E u ro -d o llar borrow ings, b an k -relate d com m ercial paper, a n d ce rtain
o th e r n o n d ep o sit item s. T his series fo r deposits is referred to as “ th e a d ­
ju ste d b an k credit p ro x y .”
N ote .— F o r descrip tio n o f revised series an d fo r b ac k d ata, see article
“ R evision o f th e M o ney S to ck M easures an d M em b er B ank R eserves an d
D ep o sits” o n p p . 61-79 o f th e F eb. 1973 B u l l e t in .
D u e to changes in R eg u latio n s M an d D , m em b er b a n k reserves in clude
reserves held ag ainst n o n d ep o sit fu n d s beginning O ct. 16, 1969. B ack d a ta
m ay be o b ta in ed fro m th e B anking S ection, D ivision o f R esearch an d
S tatistics, B oard o f G o v ern o rs o f th e F ed eral R eserve S ystem , W ash in g to n ,
D .C . 20551.

LOANS AND INVESTM ENTS AT ALL COMMERCIAL BA N K S
(In billions o f d ollars)
N o t seasonally adjusted

Seasonally adjusted

T o ta l 1

Plus
loans
sold 2

L o an s

Securities

L oans
T otal
loans
and
invest­
m e n ts 1

D a te

C om m ercial
and in d u s tria l3
P lus
loans
sold 2

U .S.
T reas­
u ry

O th e r4

T o tal
loans
an d
invest­
m ents 1

T o ta l i

Plus
loans
so ld 2

Securities

C om m ercial
a n d in d u s tr ia l3
T o tal

P lus
lo an s
sold 2

U .S.
T re as­
u ry

O th e r4

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

3 1 ..
3 1 5 ..
3 1 ..
3 1 ..
3 1 ..

3 9 0 .2
4 0 1 .7
4 3 5 .5
4 8 4 .8
5 5 6 .4

2 5 8 .2
279.1
2 9 1 .7
320.3
3 77.8

2 8 3 .0
2 9 4 .7
323.1
38 0 .4

9 5 .9
105.7
110.0
115.9
129.7

108.3
112.1
117.5
131.4

6 0 .7
5 1 .5
5 7.9
60.1
6 1 .9

7 1 .3
71.1
8 5 .9
104 .4
1 16.7

4 0 0 .4
4 12 .1
4 4 6 .8
4 9 7 .9
5 7 1 .4

2 6 4 .4
286.1
2 9 9 .0
328 .3
3 8 7 .3

2 9 0 .0
301 .9
331.1
3 89 .9

9 8 .4
108.4
112.5
1 18.5
1 32.7

111 .0
1 14.6
120 .2
134 .4

6 4 .5
5 4 .7
6 1 .7
6 4 .9
6 7 .0

7 1 .5
7 1 .3
8 6 .1
1 04.7
117.1

1973— M ay
June
July
A ug.
S ept.
O ct.
N ov.
D ec.

3 0 ..
3 0 ..
2 5 ..
29. .
26. .
3 1 ..
28. .
3 1 ..

5 9 7 .7
6 0 2 .0
6 0 8.8
6 1 7 .4
6 2 0 .2
6 2 4 .2
6 2 8 .4
6 3 0 .3

4 1 7 .4
4 2 0 .3
4 2 7 .5
4 3 5 .9
439.1
441.1
4 4 5 .5
4 4 7 .3

4 21.1
4 2 3 .8
4 3 1 .5
4 4 0 .6
4 4 3 .7
4 4 5 .7
4 4 9 .8
4 5 1 .6

146.8
148.2
151.2
153.4
153.7
153.6
155.0
155.8

149.0
1 50.4
153.7
156.3
156.6
156.5
157.7
158.4

6 1 .0
6 1 .6
5 9 .8
5 7 .9
5 6 .4
55.1
5 5 .0
52.8

119.3
120.1
121.5
123.6
124.7
1 28.0
127.9
130.2

594 .8
6 0 5 .6
6 0 7 .4
6 1 3 .4
6 1 9 .9
6 2 4 .0
6 2 8 .2
6 4 7 .3

4 1 6 .6
4 2 6 .6
4 2 9 .3
4 3 5 .2
4 4 0 .1
4 4 0 .9
4 4 3 .9
4 5 8 .5

4 2 0 .3
4 3 0 .1
4 3 3 .3
4 3 9 .9
4 4 4 .7
4 4 5 .6
4 4 8 .3
4 6 2 .8

1 46 .4
150.4
151.6
1 52.0
153.8
152.9
154.1
1 59.4

1 48.6
1 52.6
154.1
154.9
156.7
155.8
156.8
1 62.0

5 8 .3
5 7 .9
5 6 .5
5 4 .9
55.1
5 6 .0
5 7 .8
5 8 .3

1 19.9
121.1
1 21.7
123.3
124.8
127 .0
126.5
1 30.6

1974— Ja n .
F eb.
M ar.
A pr.
M ay

30*.
27*.
27*.
24*.
29*.

6 3 8 .0
6 4 5 .7
6 5 4 .9
6 6 3 .2
6 6 8 .6

4 5 2 .3
457.1
4 6 6 .3
4 7 3 .7
4 7 8 .0

4 5 6 .7
462.1
4 7 1 .2
4 79.1
4 8 3 .7

157.8
158.9
164.4
168.9
171.9

160.4
161.6
167.2
172.0
175.0

5 4 .4
5 6 .2
5 6 .2
5 6 .7
5 6 .7

131.3
1 32.4
1 32.4
132.8
133.9

6 3 7 .6
6 4 0 .4
6 5 1 .4
6 60.5
665.1

4 4 8 .3
4 5 1 .5
4 6 1 .1
4 7 0 .4
4 7 6 .9

4 5 2 .7
4 5 6 .4
4 6 6 .0
4 7 5 .8
4 8 2 .5

156.1
157.3
164.2
169 .6
1 71.3

158.7
160 .0
167.0
172.7
1 7 4 .4

5 8 .7
5 7 .5
5 7 .3
56.1
5 3 .6

130.6
131.5
133 .0
1 34.0
134 .6

1 A djusted to exclude d om estic com m ercial in terb an k loans. See also
n o te 3.
2 L o a n s sold are th o se sold o u trig h t by co m m ercial ban k s to ow n sub­
sidiaries, foreign b ranches, h o ld in g com panies, an d o th e r affiliates.
3 Beginning Ju n e 30, 1972, com m ercial and industrial loans w ere re­
duced by ab o u t $400 m illion as a result o f loan reclassifications at one
large b ank.
4 Beginning Ju n e 30, 1971, F arm ers H o m e A d m in istratio n insured notes
to talin g ap p ro x im ately $700 m illion are included in “ O th er securities”
ra th e r th a n in “ L o a n s.”
5 B eginning Ju n e 30, 1969, d a ta revised to include all bank-prem ises
su bsidiaries a n d o th e r significant m ajority-ow ned dom estic subsidiaries;
earlier d a ta include com m ercial b anks only. A lso, loans an d investm ents
are now rep o rted gross, w ith o u t valuation reserves d ed u cted , ra th e r th an




n et o f valu atio n reserves as w as d o n e previously. F o r a d escription o f th e
revision, see A ug. 1969 B u l l e t in , p p . 642-4 6 . D a ta show n in ab o v e ta b le
have been revised to include v alu atio n reserves.
N ote .— T o ta l loans a n d in v estm e n ts: F o r m o n th ly d a ta , Jan . 195 9 J u n e 1973, see N ov. 1973 B u l l e t in , p p. A -9 6 -A -9 7 , an d fo r 1948-58,
A ug. 1968 B u ll e t in , p p . A -94 -A -9 7 . F o r a descrip tio n o f th e cu rre n t
seasonally ad ju sted series see th e N ov. 1973 B u l l e t in , p p . 831-32, an d
th e D ec. 1971 B u l l e t in , p p . 971-73. C o m m e rc ia l a n d in d u stria l lo a n s:
F o r m o n th ly d a ta , J a n . 1 9 5 9 -Ju n e 1973, see N ov. 1973 B u l l e t in , pp.
A -9 6 -A -9 8 ; fo r d escrip tio n see July 1972 B u l l e t in , p . 683. D a ta are fo r
last W ednesday o f m o n th except fo r Ju n e 30 a n d D ec. 31; d a ta are p a rtly
o r w holly estim ated except w hen Ju n e 30 an d D ec. 31 are call d ates.

A 16

COMMERCIAL BANKS □ JUNE 1974
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions of dollars)
L o a n s an d investm ents

C lassification by
F R S m em b ersh ip
an d F D IC
in surance

D ep o sits

Securities
T o tal

Loans
1

U .S.
T reas­
ury

O th er
2

T o ta l
assets—
T o ta l
C ash
lia­
assets 3 bilities
and
c a p ital
ac­
c o u n ts 4

In te rb a n k 3
T o ta l3

O th e r
B o r­
ro w ­
ings

D em and
D e­
m and

T im e

T o tal
ca p ital
ac­
c o u n ts

N um ­
b er
of
b an k s

T im e 5
U .S .
G o v t.

O th e r

Last-W ednesd ay -o f-m o n th serie s6

Al) commercial banks:
1941—Dec. 3 1 ..
1947—Dec. 31 ?.
1960—Dec. 31 ..
1970—Dec. 3 1 ..
1971—Dec. 3 1 ..
1972—Dec. 3 1 ..

50,7 4 6
116,284
199,509
4 6 1 ,1 9 4
516,564
598,808

2 1 ,714
38,057
117,642
313,334
346,930
41 4 ,6 9 6

21,808
69,221
61,003
61,742
64,930
67,028

7,2 2 5
9 ,0 0 6
2 0 ,8 6 4
86,118
104,704
117,084

26.551
3 7 ,502
52,150
93,643
9 9 ,832
113,128

79,1 0 4
155,377
257,5 5 2
576,2 4 2
640,255
739,033

71,283
144,103
2 29,843
4 8 0 ,9 4 0
5 3 7 ,9 4 6
616 ,0 3 7

10,982
4 4 ,3 4 9
15,952
23 7 ,1 7 3 14,278
240 1,343 9 4 ,3 6 7
12,792
3 5 ,3 6 0
65 10,059 14,181
17,079 1,799 5 ,9 4 5 133,379 71,641
163 2 0 ,9 8 6 1 3,472
30 ,608 1,975 7 ,9 3 8 2 0 9,335 2 3 1 ,0 8 4 19,375 4 2 ,9 5 8 1 3,686
32,205 2 ,9 0 8 10,169 220,375 2 7 2 ,2 8 9 2 5 ,9 1 2 4 7,211 13,783
3 3 ,8 5 4 4 ,1 9 4 10,875 252,223 314,891 38,083 52,6 5 8 1 3,927

1973—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3 0 ..
30 ..
2 5 ..
2 9 ..
2 6 ..
3 1 ..
2 8 ..
31 ..

622,340
635,756
634,730
641,140
64 6,710
65 4,390
65 9,280
683,799

444 ,1 2 0
456.780
456 ,6 2 0
4 6 2,910
4 6 6,840
4 7 1,340
4 7 5,010
4 9 4,947

58,330
57,877
56,450
54,910
55,080
56,010
57,770
58,277

890
099
660
320
790
040
,500
,574

9 5 ,4 1 0
103,608
9 5 ,8 8 0
9 2 ,0 1 0
100,030
111,720
104,140
118,276

749,4 7 0
769,908
762,410
766,3 0 0
779,7 3 0
800,7 6 0
797,1 8 0
8 35,224

611,920
6 2 9,215
6 1 9 ,2 0 0
6 1 9 ,5 2 0
630 .3 6 0
6 4 6 ,0 3 0
638,7 4 0
681,847

2 7 ,7 7 0
3 1 ,0 4 7
2 8 ,7 1 0
2 6 .5 0 0
2 7 ,7 2 0
32 ,8 3 0
3 0,1 3 0
3 6,839

5 ,2 5 0 5 ,8 1 0 2 2 9 ,0 5 0
5 ,5 9 0 10,434 236,953
5 ,8 3 0 6 ,7 5 0 2 2 8 ,4 7 0
6 ,6 2 0 3 ,4 6 0 2 2 4 ,7 7 0
7 ,1 9 0 8 ,2 1 0 2 2 8 ,4 2 0
6 ,8 2 0 5 .6 8 0 2 4 1 ,1 3 0
7 ,0 1 0 4 .3 5 0 2 3 8 .5 4 0
6 ,7 7 3 9 ,8 6 5 2 63,3 6 7

3 4 4 ,0 4 0
345,191
3 4 9 ,4 4 0
3 5 8 ,1 7 0
3 58,8 2 0
3 5 9 .5 7 0
3 58 ,7 1 0
365,002

4 7 ,3 6 0
49,299^
5 2 ,610j
5 3 ,2 2 0
56,280!
6 0 ,6 2 0
62,870;
5 8 ,994J

5 4 ,2 4 0
5 5 ,740
5 4 ,9 2 0
5 5 ,350
5 5 ,6 2 0
5 6 ,5 1 0
5 6 ,7 3 0
58,128

1 4,018
14,046
14,069
14,083
14,102
1 4,134
14,163
14,171

1974—Jan.
Feb.
Mar.
Apr.
May

30?.
21 p .
27p.
24*.
29p.

673,520
679,130
68 7 ,670
69 4 ,660
69 7 ,970

48 4 ,2 4 0
49 0 ,1 8 0
49 7 ,4 3 0
504,560
509.780

58,730
57,500
57,260
56,060
53,630

130,550
131,450
132,980
134,040
134,560

103.070
102,230
104.070
101,770
114,588

8 10.500
816,2 0 0
827,6 0 0
8 3 3 ,3 4 0
8 50,625

6 51,410
650.9 7 0
658,4 9 0
6 65.970
6 78,265

3 1 ,5 1 0
3 1 ,3 2 0
3 1 ,5 9 0
3 0 ,8 7 0
3 4 ,0 7 0

6 ,6 2 0
6 ,2 0 0
6 ,4 9 0
7 ,2 9 0
8 ,2 0 0

9 ,5 0 0
6 ,6 2 0
6 ,0 7 0
5 ,8 5 0
5 ,8 8 0

2 3 3 ,3 1 0
2 3 2 ,9 3 0
2 3 5 ,3 6 0
2 3 5 ,4 6 0
237,2 6 5

3 7 0 ,4 7 0
3 7 3 ,9 0 0
3 78,980
3 8 6 ,5 0 0
3 9 2 ,8 5 0

6 5,77o|
67,970;
6 9 ,7 4 0
6 7 ,3 2 0
6 9 ,5 6 0

58,270,
5 8 ,5 6 0
5 9 ,0 5 0
5 9 ,5 9 0
5 9 ,8 7 0

14,180
14,202
14,236
14.741
14.741

Members of
F.R. System:
1941—Dec.
1947—Dec.
I960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

3 1 ..
3 1 ..
31 ..
31 ..
31 ..
31..

43,521
18,021 19,539 5,961
9 7 ,8 4 6 32,628 57,914 7 ,3 0 4
165,619 9 9 ,9 3 3 49 ,1 0 6 16,579
365,940 253,936 45,399 6 6 ,6 0 4
405,087 277,717 47,633 7 9 ,7 3 8
465,788 329,548 4 8 ,715 8 7 ,5 2 4

23,113
32,845
4 5 ,7 5 6
81,5 0 0
86,189
96 ,5 6 6

68,121
132,060
216,5 7 7
4 6 5 ,6 4 4
511,353
585,125

6 1 ,7 1 7
122,528
193,029
384 ,5 9 6
4 2 5 ,3 8 0
482 ,1 2 4

10,385
12,353
16,437
2 9 .1 4 2
30,612
31,958

140
50
1,639
1,733
2 ,5 4 9
3,561

1,709
1,176
5 ,2 8 7
6 ,4 6 0
8,4 2 7
9 ,0 2 4

1973—May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

30. .
30 ..
25 ..
2 9 ..
2 6 ..
3 1 ..
2 8 ..
3 1..

480,394
490,533
489,240
494,200
498,322
504,120
507,176
528,124

351,223
360,908
360,813
365,951
368,842
371,866
374,148
391,032

4 1 ,0 3 0
4 1 ,0 8 0
39,331
38,233
38,372
39,375
40 ,7 5 2
4 1,4 9 4

88,141
88,545
8 9 ,0 9 6
9 0 ,0 1 6
91,1 0 8
9 2 ,879
9 2 ,2 7 6
95,598

81,169
8 8 ,227
82,091
78,475
8 5,802
96,251
89,652
100,098

587,722
604,4 1 4
597,607
6 00,202
611,359
628,710
624,258
655,898

473,623
4 8 6 .7 7 0
4 7 8 ,4 1 7
478 ,2 7 3
486,975
4 9 9 ,1 1 0
4 91,405
526.837

26,139
29,311
27.121
2 4 ,972
2 6 ,182
3 1.142
28,5 2 2
34,782

4,6 2 1
4 ,8 7 9
5,121
5.911
6 ,4 8 0
6 ,1 1 2
6 ,2 9 8
5,843

4 ,5 1 1
8 ,1 6 7
5 ,423
2.701
6 ,7 4 0
4,601
3 ,3 5 9
8,2 7 3

3 7 ,1 3 6
12,347
4i 5 ,8 8 6
8 0 ,6 0 9 2 8 ,3 4 0
54| 8 ,4 6 4
112,393
5 7,273
130 17,398
168,032 179,229 18,578 34,100;
174,385 2 0 9 ,4 0 6 25,046! 37,2 7 9
197,817 2 39,763 36,357! 4 1 ,2 2 8
I
176,766 2 61,586 4 4 ,2 1 4 4 2 ,0 9 6
182,439 2 61,975 46,529; 4 3 ,0 9 8
175,351 265,401 48,7 6 1 ' 42,539:
172,082 2 72 ,6 0 7 4 9 ,2 8 3 4 2 ,8 0 7 ’
1 7 5,016 2 72,557 52,485; 42,972;
185,324 271 ,9 3 0 5 6,772 43,618!
182,931 270,295 58,865 4 3,759,
2 0 2 ,5 6 4 2 7 5 ,3 7 4 55,61 lj 44,741

1974—Jan.
Feb.
Mar.
Apr.
May

30..
27..
27..
24».
29 p .

518,541
522,816
529,961
535,917
538,800

381,344
385,879
392,461
399,092
4 0 3,619

41,699
4 0 ,922
40 ,5 3 7
39,273
37,282

95,4 9 8
96,015
9 6,963
9 7 ,5 5 2
9 7 ,8 9 9

8 8 ,9 6 0
87,753
89,568
87,005
9 9 ,1 5 5

635,219
639,1 7 2
6 49,1 1 4
653,285
6 69,357

5 01,260
500,113
506,641
512,792
524.837

30,003
29,753
30,083
2 9 ,3 9 6
32,452

5 ,6 9 0
5.273
5,558
6 ,3 6 4
7 .2 7 4

7,621 178,457 279,4 8 9
5 ,0 8 4 178,731 2 8 1 ,2 7 2
4 ,8 1 7 180.862 285,321
4 ,7 4 3 1 79,927 2 9 2 ,3 6 2
4 ,7 4 6 1 82,060 2 98,3 0 5

6 1,585' 44,8 2 9 |
63,865; 45,054;
65,428! 45,4911
62,859! 4 5 ,8 9 6
6 4 ,8 2 0 4 6,090'
I
I

6 ,6 1 9
6 ,9 2 3
6 ,1 7 4
5 ,7 6 7
5 ,7 2 7
5 .7 0 4
5 ,7 0 3
5 .7 0 5
5 ,7 0 7
5.7 1 3
5,7 1 8
5 ,7 2 3
5 ,7 3 6
5 ,7 3 5
5 ,7 4 4
5 ,7 4 7
5 ,7 5 4
5 .7 6 3
5 .7 6 3

C all d ate series
In su red banks:
T o ta l:
1941— D ec.
1947— D ec.
1960— D ec.
1970— D ec.
1971— D ec.
1972— D ec.

1
4 9 ,2 9 0 2 1 ,259 2 1 ,0 4 6
3 1 ...
3 1 . . . 114,274 37,583; 67,941
3 1 . . . 198,011 117,092! 60,468
3 1 8 .. 458,919 312,006! 61,4 3 8
3 1 . . . 514,097 345,386 64,691
3 1 . . . 594,502 4 1 1 ,525| 6 6,679

1973— Ju n e 3 0 . . .
O ct. 1 7 ...
D ec. 3 1 ...
N atio n al m em ber:
1941— D ec. 3 1 . . .
1947— D ec. 3 1 . . .
1960— D ec. 3 1 . . .
1970— D ec. 3 1 8 ..
1971— D ec. 3 1 . . .
1972— D ec. 3 1 ...
1973—Ju n e 3 0 ...
O ct. 1 7 ...
D ec. 3 1 . . .

6 ,9 8 4
8 ,7 5 0
20,451
85,4 7 5
104,020
116,298

25,788
36,926
51,836
92,708
98,281
111,333

76,820,
152,7331
255,669!
572,682^
635,805
732,519'

69,411
141,851
228,401
4 7 9 ,1 7 4
535,703
6 12,822

1
10,654
1,762' 4 1 ,2 9 8
15,699
10 6 ,8 4 4
12,615
54 1,325 9 2 ,9 7 5 3 4 ,8 8 2
61 9 ,7 3 4
16,921 1,667 5,932| 132,533 71,3 4 8
149 2 0 ,6 2 8
3 0,233 1,874 7 ,8 9 8 2 0 8 ,0 3 7 2 3 1 ,1 3 2 19,149 4 2 ,4 2 7
3 1 ,824 2 ,7 9 2 10,150, 2 1 9 ,1 0 2 ! 271,835 25,6 2 9 46,731
3 3 ,366 4 ,1 1 3 1 0 , 8 2 0 ; 250,693!| 3 13,830 37,5 5 6 5 2 ,1 6 6

13,426
13,398
1 3,119
1 3 ,5 0 2
1 3 ,6 0 2
13,721

630,379 452,587, 5 7 ,532 120,261 101,716 762,250' 625,316 30,559 5 ,4 4 6 10,408 2 3 5 ,1 7 4 343,729 4 8 ,4 1 3 5 5 ,2 4 0 13,8 4 2
647,971 46 8 ,0 0 0
179,971
5,821 2 3 4 ,5 4 9 357,798 5 5 ,9 0 6 56,7 2 7 13,923
101,205 780,1 9 6 633,1 8 0 28,4 4 3 6,571
678,113 490,527| 57,961 129,625 116,266 ; 827,081!! 677,358 36,248 6 ,4 2 9 9,856! 2 6 1 ,5 3 0 363,294 57,531 57,603 1 3 .964
i
1 4 ,9 7 7
22,024|
2 8 ,6 7 5
56,028
59,191;
6 7 ,3 9 0
i
369,856 270,188 31,651! 68,018 61,336
100,231
377,246 277,015
63,573
3 98,236 293,555 30,962 | 73,718 70,711 :
27,571
11,725 12,039
65,280 2 1 ,4 2 8 38,6 7 4
107,546 6 3 ,6 9 4 3 2 ,7 1 2
271,760 187,554 34,203!
302,756 206,758 36,3 8 6 :
350,743 247,041 37,185

For notes seep. A-l 7.




3 ,8 0 6
5,1 7 8
11,140
50,004
59,6 1 2
66,5 1 6

43,4 3 3 I
88,1 8 2 ;
139,261 i
340,764 !
376,318 I
434,8 1 0 !

39,458
6, 786
82,0 2 3 8 ,3 7 5
35
124,911 9 ,8 2 9
611
982
2 83,663 18,051
314,085 17,511 1,828
359,319 19,096 2 ,1 5 5

4 4 9,7 7 2 364,129 16,640 2 ,8 7 4
460,1 6 4 368,351 15,797 3 ,4 0 4
489,4 7 0 3 95,767 2 0 ,357 3 ,8 7 6

4
1,088 2 3 ,2 6 2
8 ,3 2 2
19,278
45
795; 53,541
111
3,2 6 5
7 1 ,6 6 0 3 9 ,5 4 6
4 ,7 4 0 122,298 137,592 13,100
6 ,0 1 4 128,441 160,291 18,169
6 ,6 4 6 146,800| 184,622 2 6 ,7 0 6
6,181
3 ,3 6 9
5 ,955

3 ,6 4 0
5 ,4 0 9
11,098
2 4 ,8 6 8
2 7 ,0 6 5
3 0 ,3 4 2

5 ,1 1 7
5 ,0 0 5
4 ,5 3 0
4 ,6 2 0
4 ,5 9 9
4 ,6 1 2

137,1161 201,318 3 3 ,804 3 1,867
136,163 2 09,619 38,819 3 2,516
152,705, 2 1 2 ,8 7 4 | 3 9 ,696 33,125

4 ,6 2 9
4 ,6 4 2
4 ,6 5 9

JU N E 1974 □ COMMERCIAL BANKS

A 17

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions of dollars)
Loans and investments
Classification by
FRS membership
and FD IC
insurance

Securities
Total

Loans
l

U.S.
Treas­
ury

Other
2

Total
assets—
Total
Cash
lia­
assets3 bilities
and
capital T o tal3
ac­
counts 4

D eposits
Interbank3

O ther
Bor­
row­
ings

D em and
De­
mand

Time

Time
U.S.
Govt.

Total
capital
ac­
counts

N um ­
ber
of
banks

s

O ther

Call date series
Insured banks (cont.):
State member:
1941—Dec. 3 1 .... 15,950 6,295
1947—Dec. 3 1 .... 32,566 11,200
1960—Dec. 3 1 .... 58,073 36,240
1970—Dec. 318... 94,760 66,963
1971—Dec. 3 1 .... 102,813 71,441
1972—Dec. 3 1 .... 115,426 82,889
1973—June 3 0 .... 121,052 91,095
Oct. 1 7 .... 125,715 95,056
Dec. 3 1 .... 130,240 97,828
Nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

7,500 2,155 8,145 24,688
19,240 2,125 10,822 43,879
16,394 5,439 17,081 77,316
11,196 16,600 25,472 125,460
11,247 20,125 26,998 135,517
11,530 21,008 29,176 150,697

22,259
3,739
40,505
3,978
15
68,118 6,608
1,028
101,512 11,091
750
111,777 13,102
721
123,186 12,862
1,406

9,429 20,527 26,891 155,017 123,016 12,671
30,659
25,491 158,250 123,123 11,505
10,532 21,880 29,387 166,780 131,421 14,425
8,708
20,691
39,114
106,457
123,970
147,013

2,005
2,604
1,968

621
381
2,022
1,720
2,412
2,378

13,874 4,025
1 2,246
27,068 9,062
9 3,055
40,733 17,727
20 6,299
45,734 42,218 5,478 9,232
45,945 49,597 6,878 10,214
51,017 55,523 9,651 10,886

1,502
1,918
1,644
1,147
1,128
1,092

1,986 45,322 61,032 12,725 11,231
1,146 44,735 63,132 15,352 11,432
2,318 49,859 62,851 15,914 11,617

1,076
1,078
1,076

5,776 3,241
3 1 ....
3 1 .... 16,444 4,958
3 1 .... 32,411 17,169
318... 92,399 57,489
3 1 .... 108,527 67,188
3 1 .... 128,333 81,594

1,509
1,025
1,448
10,039
11,368 3,874
16,039 18,871
17,058 24,282
17,964 28,774

2,668
4,083
6,082
11,208
12,092
14,767

7,702
19,342
35,391
93,998
109,841
130,316

262
484
1,091
1,212
1,408

4
27
141
242
552

53
149
645
1,438
1,723
1,796

4,162
3,360
12,366 6,558
20,140 14,095
40,005 51,322
44,717 61,946
52,876 73,685

6
959
7 1,271
19 3,232
571 8,326
582 9,451
1,199 10,938

6,810
6,478
6,948
7,735
7,875
8,017

1973—June 3 0 .... 139,471 91,304
Oct. 1 7 .... 145,010 95,929
Dec. 3 1 .... 149,638 99,143

16,452 31,716
49,081
16,467 34,027

13,490 157,461 138,171
12,141 161,783 141,706
16,167 170,831 150,170

1,248
1,141
1,467

567
563
586

2,241 52,735 81,379
1,305 53,650 85,047
1,582 58,966 87,569

1,884 12,143
1,735 12,778
1,920 12,862

8,137
8,203
8,229

Noninsured
nonmember:
1941 _ D e c .
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

129

3 1 ....
317...
3 1 ....
318...
3 1 ....
3 1 ....

1,457
2,009
1,498
3,079
3,147
4,865

455
474
550
2,132
2,224
3,731

761
1,280
535
304
239
349

241
255
413
642
684
785

763
576
314
934
1,551
1,794

2,283
2,643
1,883
4,365
5,130
7,073

1,872
2,251
1,443
2,570
2,923
3,775

177
159
375
380
488

185
132
101
116
81

1,291
18 1,392
13
846
1,298
40
19
1,273
55 1,530

253
478
293
756
1,134
1,620

13
4
14
226
283
527

329
325
358
532
480
491

852
783
352
184
181
206

1973—June 3 0 ....
Dec. 3 1 ....

5,915
6,192

4,732
4,927

345
316

838
949

1,892
2,010

8,196
8,650

4,438
4,996

488
591

145
344

26
9

2,000
2,215

885
1,463

500
524

204
207

1,266 3,431 10,992
2,270
1,703 4,659 23,334
11,318
11,904 4,287 6,396 40,997
16,342 19,514 12,143 110,822
17,297 24,966 13,643 129,100
18,313 29,559 16,562 154,085

9,573
21,591
36,834
96,568
112,764
134,091

18 1,288
12 1,596
33 3,590
796 8,858
866 9,932
1,726 11,429

7,662
7 ,2 6 i
7,300
7,919
8,056
8,223

Total nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.

3,696
7,233
3 1 ....
3 1 .... 18,454 5,432
3 1 .... 33,910 17,719
318... 95,478 59,621
3 1 .... 111,674 69,411
3 1 .... 133,198 85,325

1973—June 3 0 .... 145,386 96,036 16,797 32,554
Dec. 3 1 .... 155,830 104,070 16,783 34,976

15,381 165,657 142,608
18,177 179,480 155,165

1 Loans to farmers directly guaranteed by CCC were reclassified as
securities and Export-Im port Bank portfolio fund participations were
reclassified from loans to securities effective June 30, 1966. This reduced
“Total loans” and increased “ O ther securities” by about $1 billion.
“Total loans” include Federal funds sold, and beginning with June 1967
securities purchased under resale agreements, figures for which are in­
cluded in “ Federal funds sold, etc.,” on p. A-18.
Effective June 30, 1971, Farm ers Home Adm inistration notes were
classified as “ O ther securities” rather than “ Loans.” As a result o f this
change, approximately $300 million was transferred to “ Other securities”
fo r the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom o f p. A-26.
2 See first two paragraphs o f note 1.
3 Reciprocal balances excluded beginning with 1942.
4 Includes items not shown separately. See also note 1.
5 See third paragraph o f note 1 above.
6 From the last-W ednesday-of-the-month series, figures for call dates
are shown for June and D ecember as soon as they became available.
1
Beginning with Dec. 31, 1947, the series was revised; for description,
see note 4, p. 587, M ay 1964 B u l l e t in .
8 Figure takes into account the following changes, which became
effective June 30, 1969: (1) inclusion of consolidated reports (including
figures for all bank-premises subsidiaries and other significant majorityowned domestic subsidiaries) and (2) reporting o f figures for total loans




329

1,779
1,836

457
439
190
643
160
1,466
243
1,592
359
633
1,895

5,504
3,613
167 13,758 7,036
657 20,986 14,388
1,478 41,303 52,078
1,742 45,990 63,081
1,850 54,406 75,305

1,736
2,057

2,267 54,514 83,379 2,770
1,592 60,802 89,784 3,383

712
930

12,643
13,386

8,341
8,436

and for individual categories o f securities on a gross basis—that is, before,
deduction o f valuation reserves—rather than net as previously reported.
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 nonm em ber; stock savings
banks; and nondeposit trust companies.
Figures for member banks before 1970 include m utual savings banks
as follows: three before Jan. 1960 and two through Dec. 1960. Those
banks are not included in insured commercial banks.
Effective June 30, 1969, commercial banks and m ember banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business; beginning 1973,
excludes one national bank in Puerto Rico.
Beginning Dec. 31, 1973, m ember banks exclude and noninsured non­
member banks include a noninsured trust company which is a member of
the Federal Reserve System.
C omparability o f figures for classes o f banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and by mergers
etc.
Figures are partly estimated except on call dates.
F or revisions in series before June 30, 1947, see July 1947 B u l l e t in ,
pp. 870-71.

A 18

COMMERCIAL BANKS □ JU N E 1974
ASSETS BY CLASS OF BANK, DECEMBER 31, 1973
(Amounts in millions o f dollars)
M ember b a n k s1
Account

All
Insured
commercial commercial
banks
banks

Large banks
Total
New
Y ork
City

All other
City o f
Chicago

N on­
member
banks1

Other
large

C ash bank balances, items in process.............................
Currency and co in ...........................................................
Reserves with Federal Reserve banks.........................
D em and balances with banks in United S tates.........
O ther balances with banks in U nited S tates..............
Balances with banks in foreign countries...................
Cash items in process o f collection..............................

118,276
10,706
27,816
31,298
2,786
1,029
44,641

116,266
10,682
27,816
30,026
2,515
685
44,541

100,098
8,142
27,816
18,602
1,839
597
43,103

25,170
652
6,625
5,061
217
122
12,493

3,848
174
1,131
252
167
79
2,045

38,465
2,679
10,251
4,097
871
331
20,236

32,615
4,636
9,809
9,191
584
66
8,328

1 2,696

T otal securities held—Book v a lu e ...................................
U.S. Treasury....................................................................
O ther U.S. Government agencies.................................
States and political subdivisions...................................
All other securities...........................................................

188,852
58,277
29,252
95,145
6,177

187,587
57,961
28,927
94,750
5,948

137,092
41,494
19,144
72,049
4,404

17,072
5,516
2,045
8,736
774

5,546
1,684
668
2,989
204

45,878
13,466
5,461
25,500
1,450

68,597
20,828
10,969
34,824
1,976

51,759
16,783
10,108
23,096
1,773

Trading-account securities..............................................
U.S. T reasury................................................................
Other U.S. Government agencies.............................
States and political subdivisions...............................
All o th e r.........................................................................

8,657
3,136
1,432
3,650
439

8,653
3,136
1,432
3,650
436

8,570
3,124
1,416
3,598
432

3,653
1,365
597
1,563
128

646
365
63
206
12

3,921
1,311
696
1,635
279

349
83
59
193
14

87
12
17
52
7

Bank investment portfolios............................................
U.S. T reasury................................................................
Other U.S. G overnment agencies.............................
States and political subdivisions...............................
All o th e r.........................................................................

180,194
55,142
27,820
91,495
5,738

178,933
54,826
27,495
91,100
5,512

128,522
38,370
17,729
68,451
3,972

13,418
4,151
1,448
7,173
647

4,900
1,320
605
2,782
192

41,956
12,155
4,765
23,865
1,171

68,248
20,745
10,910
34,631
1,962

51,672
16,771
10,091
23,044
1,766

Federal funds sold and securities resale agreem ents. . .
Commercial b an k s...........................................................
Brokers and dealers.........................................................
O thers..................................................................................

35,311
32,122
2,647
541

34,305
31,158
2,647
500

26,126
23,080
2,627
419

790
715
61
14

1,118
701
351
66

13,372
11,484
1,662
226

10,846
10,181
553
112

9,185
9,042
20
123

Other loans.............................................................................
Real estate lo an s..............................................................
Secured by farm land...................................................
Secured by residential..................................................
1- to 4-family residences.........................................
FH A insured.........................................................
VA guaranteed.....................................................
O ther.......................................................................
M ultifam ily...............................................................
FH A insured.........................................................
O th e r......................................................................
Secured by other properties......................................

460,143
118,032
5,394
74,188
67,286
6,648
3,260
57,379
6,901
1,281
5,620
38,450

456,222
117,810
5,373
74,016
67,117
6,612
3,217
57,288
6,899
1,280
5,619
38,421

365,257
87,006
2,419
56,177
50,379
5,862
2,813
41,705
5,798
1,174
4,623
28,410

69,781
7,227
6
3,862
2,667
272
204
2,191
1,194
189
1,006
3,360

20,531
1,231
2
849
782
93
20
669
67
37
30
380

138,524
32,883
295
22,463
19,671
3,253
1,452
14,966
2,792
618
2,174
10,125

136,422
45,665
2,116
29,004
27,259
2,244
1,138
23,877
1,745
331
1,414
14,545

94,885
31,026
2,976
18,010
16,907
786
447
15,674
1,103
106
996
10,040

Loans to domestic and foreign b an k s.........................
Loans to other financial institutions...........................
Loans on securities to brokers and dealers................
O ther loans for purch./carry securities.......................

10,200
30,515
7,674
4,300
17,327
159,417

9,141
30,401
7,625
4,280
17,146
157,622

8,751
29,019
7,498
3,649
10,229
134,390

4,043
10,343
4,883
737
137
33,590

680
3,929
1,054
319
167
10,875

3,478
12,179
1,343
1,612
2,476
53,692

550
2,568
217
981
7,449
36,233

1,449
1,496
176
651
7,098
25,027

99,927
76,204
33,462
4,834
9,092
6,838
2,254
14,411
8,370
6,040
14,405
23,724
12,751

99,577
75,897
33,274
4,827
9,092
6,838
2,254
14,390
8,369
6,021
14,314
23,680
12,620

73,104
54,992
22,900
3,596
8,117
6.191
1,926
10,236
6,073
4,163
10,143
18,111
11,611

5,408
2,990
496
199
1,040
773
267
137
65
73
1,117
2,418
3,412

1,326
658
147
38
264
238
25
88
60
28
122
668
950

26.178
19;597
7,364
1,463
4,532
3,467
1,065
3,453
2,155
1,299
2,785
6,581
4,684

40,192
31,747
14,892
1,897
2,281
1,713
568
6,558
3,794
2,764
6,119
8,444
2,565

26,824
21,211
10,562
1,238
975
647
328
4,174
2,298
1,877
4,262
5,612
1,140

Total loans and securities...................................................

684,305

678,113

528,476

87,643

27,195

197,774

215,864

155,830

Investments in subsidiaries not consolidated.................
C ustom er acceptances outstanding..................................
O ther assets............................................................................

13,232
1,412
4,420
14,085

13,160
1,403
4,355
13,784

10,188
1,388
4,121
11,979

1,034
644
2,264
3,229

404
108
289
698

4,155
584
1,345
5,100

4,595
51
224
2,952

3,044
24
299
2,106

835,730

827,081

656,250

119,984

32,542

247,422

256,302

179,480

Commercial and industrial loans..................................
Loans to individuals.........................................................
Instalment loans................................................................
Residential-repair/m odernize....................................
Credit cards and related p la n s..................................
Charge-account credit cards..................................
Check and revolving credit plans.........................

O ther instalment loans................................................
Single-payment loans to individuals............................

1 M em ber banks exclude and nonm em ber banks include a noninsured
trust company that is a m ember o f the Federal Reserve System, and
m ember banks exclude two national banks outside the continental U nited
States.
2 See table (and notes), D eposits Accum ulated fo r Paym ent o f Personal
Loans , p. 26.
3 D em and deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process o f collection.




18,178
2,564
946
432
1,539

N ote .—D ata include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic
subsidiaries. Figures for total loans and for individual categories o f
securities are reported on a gross basis—that is, before deduction of
valuation reserves.
Back data in lesser detail were shown in previous B u l l e t in s .
D etails may not add to totals because of rounding.

JU N E 1974 □ COM M ERCIAL BANKS

A 19

LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1973
(Amounts in millions o f dollars)
M ember bank s 1
A ccount

Insured
Ail
commercial commercial
banks
banks

]Large banks
Total

All other

New
York
City

M utual savings b a n k s .....................................................
O ther individuals, partnerships, and corporations ..
U.S. G overnm ent.............................................................
Foreign governments, central banks, etc.....................
Commercial banks in United S tates............................
Banks in foreign countries..............................................
Certified and officers’ checks, etc..................................
Savings deposits................................................................
M utual savings b an k s.....................................................
O ther individuals, partnerships, and corporations ..
U.S. G overnm ent.............................................................
States and political subdivisions....................................
Foreign governments, central banks, etc....................
Commercial banks in United States............................
Banks in foreign countries.............................................

N on­
member
b anks1

Other
large

City of
Chicago

310,071
1,280
231,729
9,865
18,663
1,625
29,975
5,584
11,349

307,634
1,156
230,883
9,856
18,508
1,356
29,815
5,278
10,784

245,620
1,067
179,044
8,273
13,246
1,333
28,713
5,001
8,942

52,661
513
29,305
1,689
658
1,036
12,430
3,803
3,226

10,144
1
7,431
434
244
92
1,552
142
248

89,011
196
66,567
3,603
3,806
201
10,739
942
2,958

93,803
357
75,741
2,547
8,538
4
3,992
114
2,509

64,451
212
52,686
1,592
5,417
293
1,262
583
2,407

372,282
127,183
507
652
183,624
439
44,385
9,371
5,858
263

369,723
126,925
503
640
182,639
439
44,306
8,482
5,622
167

281,569
93,721
352
633
139,755
298
33,259
8,341
5,077
133

37,576
6,134

14,090
2,372

388
21,135
40
2,284
4,364
3,185
46

97
9,027
2
1,173
939
457
23

101,702
33,045
58
118
50,004
103
14,201
2,996
1,118
59

128,201
52,169
294
30
59,590
153
15,601
41
318
5

90,714
33,462
155
19
43,869
141
11,126
1,031
780
130

682,353

677,358

527,188

90,237

24,235

190,713

222,004

155,165

Federal funds purchased and securities sold under
agreements to repurchase...............................................
Other liabilities for borrowed m oney..............................
Mortgage indebtedness........................................................
Bank acceptances outstanding...........................................
Other liabilities......................................................................

51,167
7,827
762
4,553
23,128

50,410
7,121
759
4,484
21,549

48,731
6,879
587
4,251
17,451

10,713
2,773
80
2,364
3,797

4,573
245
80
305
691

27,110
3,067
260
1,357
6,812

6,335
794
167
225
6,151

2,436
947
174
302
5,677

Total liabilities......... .............................................................

769,790

761,682

605,088

109,964

30,129

229,320

235,675

164,702

M inority interest in consolidated subsidiaries...............
T otal reserves on loans/securities......................................
Reserves for bad debts (IR S )........................................
O ther reserves on loans...................................................
Reserves on securities................................................. ....

6
7,806
7,532
99
176

5
7,790
7,518
98
174

3
6,417
6,243
54
120

1,412
1,412

425
417

2
2,372
2,313
8
51

1
2,208
2,101
45
62

3
1,389
1,289
45
55

Total capital accounts.........................................................
Capital notes and debentures........................................

57,603
4,081
53,522
66
13,784
23,511
15,314
848

44,741
3,333
41,408
47
10,518
18,297
11,915
631

8,607
729
7,878
19
2,154
3,433
2,268
4

1,989
57
1,931

Preferred sto ck .............................................................
Common stock.............................................................
Surplus............................................................................
Undivided profits.........................................................
O ther capital reserves..................................................

58,128
4,135
53,993
71
13,882
23,640
15,498
902

562
1,120
201
48

15,728
1,617
14,111
15
3,437
6,628
3,779
251

18,418
930
17,488
13
4,364
7,117
5,666
328

13,386
802
12,585
24
3,364
5,342
3,584
271

Total liabilities, reserves, minority interest, capital
account................................................................................

835,730

827,081

656,250

119,984

32,543

247,422

256,302

179,480

Demand deposits adjusted 3 ...............................................
Average total deposits (past 15 days)...............................
Average total loans (past 15 days)....................................

225,589
662,118
466,822

223,422
657,209
462,549

165,530
510,255
365,939

26,049
87,627
69,294

6,114
22,787
20,240

54,433
183,133
139,096

78,935
216,709
137,309

60,059
151,863
100,882

7

Selected ratios:
Percentage o f total assets
Cash and balances with other banks...........................

14.2

14.1

15.3

21.0

11.8

15.5

12.7

10.1

Total securities held.........................................................
Trading account securities..........................................
U s Treasury
.
...........
States and political subdivisions
.•
All other trading account securities.....................

22.6
1.0
.4
.4
.2

22.7
1.0
.4
*4
.2

20.9
1.3
.5
.5
.3

14.2
3.0
1.1
1.3
.6

17.0
2 .0
1.1
.6
.2

18.5
1.6
.5
.7
.4

26.8
.1

28.8

Bank investment portfolios........................................
U.S. T reasury...........................................................
States and political subdivisions...........................
All other portfolio securities.................................

21.6
6.6
10.9
4 .0

21.6
6.6
11.0
4 .0

19.6
5.8
10.4
3.3

11.2
3.5
6 .0
1.7

15.1
4.1
8.6
2.5

17.0
4.9
9 .6
2.4

26.6
8.1
13.5
5.0

28.8
9.3
12.8
6 .6

All other assets.................................................................
Total loans and securities...............................................

59.3
4 .0
81.9

59.3
4 .0
82.0

59.6
4 .2
80.5

58.8
6 .0
73.0

66.5
4 .6
83.6

61.4
4 .5
79.9

57.5
3.1
84.2

58.0
3 .0
86.8

Reserves for loans and securities..................................
Equity capital—T o tal......................................................
Total capital accounts.....................................................

.9
6.5
7.0

.9
6.5
7.0

1.0
6.3
6.8

1.2
6 .6
7.2

1.3
5.9
6.1

1.0
5.7
6.4

.9
6.8
7.2

.8
7.0
7.5

Number o f banks.................................................................

14,171

13,964

5,735

13

9

156

5,557

8,436

For notes see opposite page.




.1

A 20

WEEKLY REPORTING BANKS a JU N E 1974
ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS
(In millions o f dollars)
Loans
Federal funds sold, etc.1

Wednesday

O ther

To brokers
and dealers
involving—

Total
loans
and
invest­
ments
Total

To
com­
mer­
cial
banks

U.S.
Treas­
ury
se­
curi­
ties

F o r purchasing
or carrying securities

To
others

Total

Other
se­
curi­
ties

Com­
mer­
cial
and
indus­
trial

Agri­
cul­
tural

To brokers
and dealers

U.S.
Treas­
ury
secs.

Other
secs.

To nonbank
financial
institutions

To
others

U.S.
Treas­
ury
secs.

Other
secs.

Pers.
and
sales
finan.
cos.,
etc.

Other

Large banks —
Total
1973
May

337,978
336,693
338,260
337,153
339,968

13,241
12,174
12,546
12,136
12,959

12,246
10,978
11,460
10,972
11,166

593
714
731
849
1,427

225
218
203
159
216

177
264
152
156
150

245,134
245,091
247,156
246,634
247,526

102,433
102,415
102,878
102,942
102,711

3,092
3,103
3,127
3,161
3,176

595
618
536
463
885

6,295
6,605
6,577
6,015
6,079

213
199
217
216
226

2,951
2,955
2,945
2,960
2,930

8,045
7,980
8,354
8,134
8,156

15,080
14,991
15,269
15,364
15,556

3...............
10...............
17...............
2 4 ........

384,374
385,142
386,541
382,624

16,665 15,149
16,432 14,995
15,615 14,137
14,928 13,487

937
891
867
857

355
237
271
207

224
309
340
377

280,479
281,108
284,058
282,320

118,495
118,986
120,499
119,815

3,803
3,793
3.791
3,807

729
858
771
482

4,557
4,731
4,756
4,435

138
137
133
132

2,778
2,759
2,793
2,776

9,085
8,948
9,404
8,919

19,090
19,267
19,651
19,643

1*.............

388,389
385,361
386,489
385,682
384,976

16,542 14,947
15,072 13,497
15,701 14,001
15,647 12,688
15,235 13,358

956
938
974
1,924
1,025

271
262
342
464
382

368
375
384
571
470

286,830
285,026
285,911
286,067
286,053

121,270
121,439
121,489
121,019
120,877

3,800
3.791
3,795
3,784
3,788

436
335
393
1,053
337

5,079
4,589
4,742
4,775
4,738

123
124
117
133
122

2,788
2,775
2,762
2,773
2,739

9,632
9,348
9,180
8,986
9,398

20,209
20,051
20,294
20,257
20,332

72
72
82
106
104

14

56,472
56,748
57,625
56,415
57,087

28,832
29,031
29,186
29,003
28,967

480
528
455
366
774

3,679
3,923
3,977
3,494
3,567

662
669
661
650
644

2,326
2,282
2,486
2,350
2,356

4,729
4,678
4,820
4,786
4,918

22

66.712
66,688
67,698
66,466

34,300
34,235
34,659
34,295

149
151
150
156

630
765
656
403

2,567
2,709
2,907
2,667

609
614
605
599

3,121
3,083
3,327
3,024

6,601
6,684
6,788
6,815

68.712
67,198
67,620
68,055
67,989

34,878
34,841
34,931
34,770
34,944

153
149
147
144
141

337
260
320
983
272

3,057
2,643
2,861
2,896
2,843

596
594
578
553
561

3,546
3,261
3,130
3,007
3,248

7,040
6,979
7,093
7,116
7,171

10,351
10,313
10,449
10,578
10,638

2 ...............
9
16...............
23...............
30...............
1974

Apr.

May

8*........

15* ........
22*.............
29*.............
New York City
1973
May

70,789
69,835
71,351
71,024
72,092

2,063
1,053
1,615
2,464
2,484

1,967
976
1,518
2,353
2,374

3...............
1 0
17...............
2 4

84,328
83,371
84,399
82,735

2,382
1,330
1,746
2,117

2,377
1,287
1,683
2,076

1*.............

85,767
82,992
84,291
83,698
83,353

2,869
1,468
2,507
1,919
1,642

2,862
1,449
2,479
1,909
1,603

2 ...............
9 ...............
16...............
2 3
30...............
1974

Apr.

May

8*........

15*.............
22*.............
29*.............
Outside
New York City
1973
May

267,189 11,178 10,279
266,858 11,121 10,002
266,909 10,931
9,942
266,129 9,672 8,619
267,876 10,475 8,792

521
642
649
743
1,323

225
218
189
159
216

153
259
151
151
144

188,662
188,343
189,531
190,219
190,439

73,601
73,384
73,692
73,939
73,744

3,040
3,051
3,063
3,085
3,100

115
90
81
97

111

2,616
2,682
2,600
2,521
2,512

166
152
167
164
165

2,289
2,286
2,284
2,310
2,286

5,719
5,698
5.868
5,784
5,800

1974
Apr.

May

1*.

8*.
22*...
1 5 * ...

2 9 * ...

300,046
301,771
302,142
299,889

14,283
15,102
13,869
12,811

12,772
13,708
12,454
11,411

937
885
861
852

355
237
249
207

219
272
305
341

213,767
214,420
216,360
215,854

84,195
84,751
85,840
85,520

3,654
3,642
3.641
3,651

99
93
115
79

1,990
2,022
1,849
1,768

103
102
98
97

2,169
2,145
2,188
2.177

5,964 12,489
5,865 12,583
6,077 12,863
5,895 12,828

302.622
302,369
302,198
301,984
301.623

13,673 12,085
13,604 12,048
13,194 11,522
13,728 10,779
13,593 11,755

949
929
965
1,924
1,025

271
262
342
464
382

368
365
365
561
431

218,118
217,828
218,291
218,012
218,064

86,392
86,598
86,558
86,249
85,933

3.647
3.642
3.648
3,640
3,647

99
75
73
70
65

2,022
1,946
1,881
1,879
1,895

91
91
89
96
94

2,192
2,181
2,184
2,220
2.178

6,086 13,169
6,087 13,072
6,050 13,201
5,979 13,141
6,150 13,161

For notes see p. A-24.




JU N E 1974 □ WEEKLY REPORTING BANKS

A 21

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Loans (cont.)

Investments

O ther (cont.)

U.S. Treasury securities
N otes and bonds
m aturing—

To commercial
banks

Real
estate
D o­
mes­
tic

For­
eign

Con­
sumer
instal­
ment

Wednesday
F or­
eign
govts. 2

All
other

Total

Certif­
icates

Bills

W ithin
1 yr.

1 to
5 yrs.

After
5 yrs.

Large banks —
Total
1973
48,253
48,437
48,666
48,932
49,141

3,177
3,028
3,222
3,285
3,235

4,902
4,843
5,060
5,161
4,969

29,291
29,336
29,451
29,576
29,711

1,239
1.267
1,275
1.267
1,252

19,568
19,314
19,579
19,158
19,499

24,493
24,029
23,699
23,500
23,989

4,522
4,171
3,825
3,776
4,191

3,791
3,707
3,694
3,856
3,926

14,146
14,057
13,345
13,107
12,997

2,034
2,094
2,835
2,761
2,875

........................... May 2
...................................... 9
...................................... 16
...................................... 23
...................................... 30

56,147
56,242
56,464
56,604

3,951
3,875
3,835
3,927

6,234
6,346
6,213
6,355

33,201
33,249
33,310
33,291

1,747
1,752
1,866
1,895

20,524
20,165
20,572
20,239

25,339
25,694
24,783
23,419

5,165
5,195
4,438
3,202

4,273
4,306
4,222
4,192

11,921
12,192
12,094
12,031

3,980
4,001
4,029
3,994

........................... A pr. 3
...................................... 10
...................................... 17
...................................... 24

56,797
56,900
57,219
57,375
57,493

4,094
3,963
3,940
4,011
4,058

6,367
6,209
6,191
6,457
6,321

33,246
33,269
33,343
33,424
33,507

1,943
1,839
1,900
1,877
1,859

21,046
20,394
20,546
20,143
20,484

22,960
22,847
22,262
22,186
21,804

2,690
2,669
2,349
2,400
2,077

4,284
4,282
3,361
3,680
3,573

11,954
11,910
12,545
12,187
12,253

4,032
3,986
4,007
3,919
3,901

........................... M ay

1974

1*

........................ 8?
...................................... 15*
........................ 22*
........................ 29*
New York City
1973

5,239
5,258
5,278
5,311
5,354

1,324
1,200
1,245
1,189
1,198

2,165
2,118
2,353
2,351
2,200

2,183
2,200
2,206
2,218
2,218

699
711
714
711
706

4,055
4,051
4,130
3,858
4,048

3,769
3,472
3,667
3,772
4,124

1,138
954
886
1,087
1,344

537
486
528
539
551

1,892
1,788
1,606
1,568
1,572

202
244
647
578
657

........................... May 2
...................................... 9
...................................... 16
...................................... 23
...................................... 30

6,420
6,419
6,489
6,504

1,396
1,374
1,357
1,405

3,018
2,950
2,796
2,845

2,467
2,480
2,501
2,513

783
784
790
781

4,616
4,405
4,638
4,424

5,225
5,233
4,662
4,004

1,643
1,633
1,086
485

531
557
573
559

1,783
1,778
1,738
1,704

1,268
1.265
1.265
1,256

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

6,539
6,578
6,647
6,684
6,716

1,436
1,453
1,447
1,507
1,567

2,962
2,803
2,708
2,929
2,890

2,349
2,358
2,357
2,376
2,386

811
786
798
743
738

4,976
4,460
4,575
4,310
4,484

4,116
3,919
3,727
3,607
3,598

502
308

597
596
351
393
392

1,750
1,718
2,003
1,897
1,909

1,267
1,297
1,305
1,263
1,260

........................... May

1974

68

54
37

1*

........................ 8*
...................................... 15*
...................................... 22*
...................................... 29*
Outside
New York City
1973

43,014
43,179
43,388
43,621
43,787

1,853
1,828
1,977
2,096
2,037

49,727
49,823
49,975
50,100

2,555
2,501
2,478
2,522

50,258
50,322
50,572
50,691
50,777

2,658
2,510
2,493
2,504
2,491

2,737
2,725
2,707
2,810
2,769

27,108
27,136
27,245
27,358
27,493

540
556
561
556
546

15,513
15,263
15,449
15,300
15,451

20,724
20,557
20,032
19,728
19,865

3,384
3,217
2,939
2,689
2,847

3,254
3,221
3,166
3,317
3,375

12,254
12,269
11,739
11,539
11,425

1,832
1,850
2,188
2,183
2,218

........................... May 2
...................................... 9
...................................... 16
...................................... 23
...................................... 30

30,734
30,769
30,809
30,778

964
968
1,076
1,114

15,908
15,760
15.934
15,815

20,114
20,461
20,121
19,415

3,522
3,562
3,352
2,717

3,742
3,749
3,649
3,633

10,138
10,414
10,356
10,327

2,712
2,736
2.764
2,738

........................... Apr. 2
...................................... 10
...................................... 17
...................................... 24

30,897
30,911
30,986
31,048
31,121

1,132
1,053
1,102
1,134
1,121

16,070
15.934
15,971
15,833
16,000

18,844
18,928
18,535
18,579
18,206

2,188
2,361
2,281
2,346
2,040

3,687
3,686
3,010
3,287
3,181

10,204
10,192
10,542
10,290
10,344

2.765
2,689
2,702
2,656
2,641

........................... May

1974

3.405
3.406
3,483
3,528
3,431

For notes see p. A-24.




1*

........................ 8*
......................................15*
......................................22*
. . ........................... 29*

A 22

WEEKLY REPORTING BANKS □ JU N E 1974
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Investments (cont.)
O ther securities

Wednesday
Total

Obligations
o f State
and
political
subdivisions
Tax
war­
ra n ts3

All
other

O ther bonds,
corp. stock,
and
securities

Certif.
of
partici­
pation4

Cash
items
in
process
of
collec­
tion

Re­
serves
with
F.R.
Banks

C ur­
rency
and
coin

Bal­
ances
with
do­
mestic
banks

Invest­
ments
in sub­
sidiar­
ies not
consol­
idated

O ther
assets

Total
assets I
total
liabil­
ities

All
other5

Large banks—
Total

1973
May

2.........................
9
16.........................
2 3
30.........................

Apr.

3.........................

55,110
55,399
54,859
54,883
55,494

7,673
8,330
8,271
8,249
8,318

38,677
38,366
37,798
37,831
37,897

1,655
1,536
1,551
1,540
1,542

7,105
7,167
7,239
7,263
7,737

31,004
26,745
32,377
26,925
31,355

19,599
21,307
21,096
20,698
17,993

3,901
3,846
3,978
4,084
4,265

9,451
9,035
10,133
9,898
9,335

1,233
1,240
1,243
1,248
1,250

19,707
19,168
19,197
19,268
19,554

422,873
418,034
426,284
419,274
423,720

61,891
61,908
62,085
61,957

7,356
7,510
7,657
7,544

40,981
40,881
41,026
41,028

2.443
2,438
2.443
2,417

11,079
10,959
10,968

11,111

33,262
32,794
35,297
29,510

20,994
21,499
22,205
21,945

4,037
4,221
4,493
4,543

12,812
12,695
12,838
11,735

1,477
1,480
1,495
1,501

23,196
22,991
23,164
23,221

480,152
480,742
486,033
475,079

62,057
62,416
62,615
61,782
61,884

7,621
7,680
7,801
7,490
7,481

40,939
41,393
41,338
40,995
40,902

2,392
2,385
2,433
2,384
2,395

11.105
10,958
11,043
10,913
11.106

35,137
30,485
36,430
31,399
35,644

22,283
22,910
24,226
19,902
26,898

4,269
4,131
4,370
4,453
4,691

10,468
11,240
12,980
12,865
12,161

1,515
1,542
1,551
1,559
1,566

24,000
23,784
23,959
23,522
23,859

486,061
479,453
490,005
479,382
489,795

1,609

5,260
4,767
4,603
4,577
4,536

480
365
361
355
353

1,136
1,208
1,262
1,297
1,411

10,228
8,952
10,945
9,529
10,526

5,276
6,048
5,784
5,065
3,979

457
473
453
477
490

3,671
3,747
4,690
4,616
3,580

585
587
590
591
593

6,334
5,870
6,169
6,144
6,182

97,340
95,512
99,982
97,446
97,442

2,200

567
564
564
548

2,058
2,027
2,005
2,016

11,436
12,250
11,518
10,512

507
497
495
509

5,833
6,469
5,855
5,688

691
691
692
696

7,182
7,139
7,205
7,188

115,569
115,818
116,387
113,600

6,166
7,385
7,100
4,657
9,186

481
504
486
503
510

4,111
5,516
6,891
7,095
6,251

710
725
723
731
731

7,325
7,280
7,431
7,086
7,489

116,717
115,887
119,994
115,683
120,806

1974
1 0

17.........................
2 4
May

1*...........................

8*.................

15*.....................
22 *........................
29*.......................
New York City

1973
M ay

2.........................
9.........................
16.........................
2 3
30.........................

8,485
8,562
8,444
8,373
8,397

2,222

2,218
2,144
2,097

1974
Apr.

May

1,944
2,081

3.........................
10 .........................
17.........................
2 4

10,009

2,108

5,440
5,448
5,524
5,476

1*...........................

10,070
10,407
10,437
10,117
10,124

2,138
2,152
2,142
2,036
2,017

5,378
5,709
5,688
5,532
5,469

543
545
541
539
551

2,011
2,001

2,087

12,157
11,485
13,072
11,913
13,286

46,625
46,837
46,415
46,510
47,097

6,064
6,108
6,053
6,105
6,221

33,417
33,599
33,195
33,254
33,361

1,175
1,171
1,190
1,185
1,189

5,969
5,959
5,977
5,966
6,326

20,776
17,793
21,432
17,396
20,829

14,323
15,259
15,312
15,633
14,014

3,444
3,373
3,525
3,607
3.775

5,780
5,288
5,443
5,282
5,755

648
653
653
657
657

13,373
13,298
13,028
13,124
13,372

325,533
322,522
326,302
321,828
326,278

51,882
51,788
51,792
51,809

5,412
5,429
5,457
5,436

35,541
35.433
35,502
35,552

1,876
1,874
1,879
1,869

9,053
9,052
8,954
8,952

21,826
20,544
23,779
18,998

15,402
16,098
15,982
15,673

3,530
3,724
3,998
4,034

6,979
6,226
6,983
6,047

786
789
803
805

16,014
15,772
15,959
16,033

364,583
364,924
369,646
361,479

51,987
52,009
52,178
51,665
51,760

5,483
5,528
5,659
5,454
5,464

35,561
35,684
35,650
35,463
35.433

1,849
1,840
1,892
1,845
1,844

9,094
8,957
8,977
8,903
9,019

22,980
19,000
23.358
19,486
22.358

16,117
15,525
17,126
15,245
17,712

3,788
3,627
3,884
3,950
4,181

6,357
5,724
6,089
5,770
5,910

805
817
828
828
835

16,675
16,504
16,528
16,436
16,370

369,344
363,566
370,011
363,699
368,989

8*.................

15*.......................
22 *.......................
29*........................

10,120

10,293
10,148

2,066
2,010

Outside
New York City

1973
May

2.........................
9
16.........................
2 3
30.........................
1974

Apr.

3.........................
1 0

17.........................
2 4
M ay

1*...........................

8*.................

15*.......................
22*.......................
29*.......................




JU N E 1974 □ WEEKLY REPORTING BANKS

A 23

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Deposits
D emand

Total

IPC

States
and
polit­
ical
sub­
divi­
sions

Time and savings

Domestic
interbank

U.S.
Govt.

Com ­
mer­
cial

Foreign

Com ­
Mutual
Govts., mer­
sav­
etc. 2
ings
cial
banks

IPC
Certi­
fied
and
offi­
cers’
checks

T otal6
Sav­
ings

Other

States
and
polit­
ical
subdivi-

D o­
mes­
tic
inter­
bank

W ednesday
F or­
eign
g ovts.2

Large banks —
Total

1973
156,704
146,600
153,164
145,378
150,506

109,077
104,677
109,214
104,487
109,224

7,504
6,343
6,919
6,052
6,561

7,447 21,021
5,701 19,271
3,956 21,929
3,942 19,528
2,891 20,341

732
732
687
713
722

948
912
857
908
952

3,436
3,223
3,326
3,210
3,329

6,539
5,741
6,276
6,538
6,486

176,383
178,321
178,862
179,929
180,341

57,965
58,121
58,190
58,265
58,224

83,149
84,924
85,404
86,103
86,338

23,016
23,079
23,024
23,053
22,916

3,752
3,863
3,860
4,065
4,080

7,601
7,704
7,753
7,763
7,997

...............M ay 2
.......................... 9
..........................16
......................... 23
..........................30

163,148
161,816
167,445
155,725

113,210
113,128
117,101
110,513

6.064
6.064
6,076
5,890

3.714
1.714
4,796
3,573

24,732
24,580
24,570
22,294

838
779
739
651

1,327
2,203
1,671
1,479

4,701
4,670
4,422
4,669

8,562 197,!
8,678 200,143
8,070 200,937
6,656 203,069

58,485
58,395
58,036
57,924

102,519
104,081
103,907
105,643

23,581
23,990
24,736
24,997

5,110
5,326
5,486
5,673

7,480
7,651
8,105
8,152

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

166,939
156,818
164,391
155,615
161,038

114,468
108,536
113,945
109,022
112,753

7,167
6,201
7,366
5,883
6,116

7,347
5,221
3,688
2,445
3,593

22,445
22,970
24,830
23,239
25,032

774
700
675
659
655

1,449
1,368
1,310
1,075
1,107

4,692
4,777
4,786
4,897
4,854

8,597
7,045
7,791
8,395
6,928

203,690
205,601
206,597
208,783
209,575

57,836
57,926
57,868
57,867
57,844

106,210
107,807
108,767
110,319
111,042

24,925
25.047
25.047
25,397
25,441

5,877
6,098
6,119
6,305
6,512

8,201
8,077
8,176
8,262
8,040

...............May

1974

1*

................ 8*
..........................15*
..........................22*
..........................29*
N ew York C ity

1973
42,444
38,128
41,353
39,133
39,969

23,898
22,068
23,163
21,983
23,648

560
363
484
344
404

1,583 9,577
1,063 8,673
743 10,603
671 9,151
493 8,842

375
374
344
392
363

811
772
718
763
797

2,502
2,242
2,338
2,291
2,314

3,138
2,573
2,960
3,538
3,108

31,598
31,871
31,978
32,241
32,574

5.356
5.356
5,361
5,350
5,345

18,245
18,359
18,341
18,464
18,594

2,010
2,070
2,154
2,077
2,072

2,203
2,208
2,174
2,379
2,397

3,675
3,768
3,840
3,862
4,050

...............M ay 2
.......................... 9
..........................16
..........................23
..........................30

47,616
47,450
47,709
44,855

24,217
23,835
24,380
23,980

491
405
313
305

819 12,477
313 12.702
1,188 12,469
635 11,572

466
414
367
329

1,122
1,916
1,456
1,233

3,534
3,471
3,262
3,415

4,490
4,394
4,274
3,386

36,230
37,241
37,421
37,797

5,130
5,127
5,090
5,076

22,080
22,810
22,698
22,901

1,804
1,815
1,724
1,726

3,222
3,390
3,475
3,581

3,847
3,946
4,269
4,345

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

47,977
45,186
48,544
46,950
48,038

25,810
23,421
24,649
23,580
25,207

425
380
626
340
300

1,375
1,015
722
457
688

394
361
335
357
328

1,216
1,167
1,103
888
887

3,424
3,432
3,549
3,628
3,467

4,600
3,707
4,289
5,196
3,672

38,060
38,642
39,139
40,032
40,409

5.061
5,064
5,073
5.062
5,067

22,925
23,372
23,601
24,238
24,560

1,683
1,686
1,809
1,831
1,823

3,683
3,811
3,899
4,025
4,231

4,534
4,531
4,577
4,647
4,456

...............May

1974

10,733
11.703
13,271
12,504
13,489

1*

................ 8*

..........................15*
.......................... 22*
.......................... 29*
Outside
N ew Y ork C ity

1973
114,260
108,472
111,811
106,245
110,537

85,179
82,609
86,051
82,504
85,576

6,944
5,980
6,435
5,708
6,157

5,864 11,444
4,638 10,598
3,213 11,326
3,271 10,377
2,398 11,499

357
358
343
321
359

137
140
139
145
155

934
981
988
919
1,015

3,401 144,785
3,168 146,450
3,316 146,884
3,000 147,688
3,378 147,767

52,609
52,765
52,829
52,915
52,879

65,174
66,565
67,063
67,639
67,744

21,006
21,009
20,870
20,976
20,844

1,549
1,655
1,686
1,686
1,683

3,926
3,936
3,913
3,901
3,947

115,532
114,366
119,736
110,870

88,993
89,293
92,721
86,533

5,573
5,659
5,763
5,585

2,895
1,401
3,608
2,938

12,255
11,878
12,101
10,722

372
365
372
322

205
287
215
246

1,167
1,199
1,160
1,254

4,072
4,284
3,796
3,270

161,659
162,902
163,516
165,272

53,355
53,268
52,946
52,848

80,439
81,271
81,209
82,742

21,777
22,175
23,012
23,271

1,888
1,936
2,011
2,092

3,633
3,705
3,836
3,807

. Apr.

118,962
111,632
115,847
108,665
113,000

88,658
85,115
89,296
85,442
87,546

6,742
5,821
6,740
5,543
5,816

5,972
4,206
2,966
1,988
2,905

11,712
11,267
11,559
10,735
11,543

380
339
340
302
327

233
201
207
187
220

1,268
1,345
1,237
1,269
1,387

3,997
3,338
3,502
3,199
3,256

165,630
166,959
167,458
168,751
169,166

52,775
52,862
52,795
52,805
52,777

83,285
84,435
85,166
86,081
86,482

23,242
23,361
23,238
23,566
23,618

2,194
2,287
2,220
2,280
2,281

3,667
3,546
3,599
3,615
3,584

. May

.M ay 2
........... 9
...........16
...........23
...........30
1974

For notes see p. A-24.




3

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

1*
.15*

.22*

.29*

A 24

WEEKLY REPORTING BANKS □ JU N E 1974
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Reserves
for—

Borrowings
from —

Wednesday

Fed­
eral
funds
p ur­
F.R.
chased, Banks
e tc .7

Others

Other
liabili­
ties,
etc.8

Loans

M em oranda

Secur­
ities

Total
capital
ac­
counts

Total
loans
(gross)
ad­
justed9

Total
loans
and
De­
mand
invest­
ments deposits
(gross)
ad­
ad­
justed i°
justed

Large negotiable
time C D ’s
included in time
and savings deposits i 1

Total

Issued
to
lP C ’s

Issued
to
others

Gross
liabili­
ties o f
banks
to
their
foreign
bran­
ches

Large banks —
Total

1973
34,513
36,592
36,836
37,315
36,471

454
2,359
2,002
935
1,253

2,891 17,082
2,985 16,311
3,082 17,574
3,002 17,906
3,203 17,221

4,430
4,427
4,434
4,437
4,459

30,352
30,366
30,266
30,308
64 30,202

242,952
243,259
245,020
244,513
246,084

322,555
322,687
323,578
322,896
325,567

97,232
94,883
94,902
94,983
95,919

56,264
57,650
58,253
59,161
59,454

36,965
38,019
38,548
39,113
39,122

19,299
19,631
19,705
20,048
20,332

1,238
1,073
1,721
1,492
1,351

3 ........................
10........................
17........................
2 4

54,544
54,569
53,303
51,235

823
1,017
939
1,728

6,317
6,267
6,078
6,013

19,601
19,107
19,605
19,585

4.994
4.991
4.995
4.991

32,762
32,758
32,658
32,667

278,044
278.670
281,701
279,834

365,274
366,272
368,569
365,210

101,440
102,728
102,782
100,348

69,479
71,540
71,753
73,600

48,191
49,812
49,612
51,251

21,288
21,728
22,141
22,349

2,717
2,908
3,020
2,495

1*......................

50,142
51,132
50,733
47,583
50,412

1,366
1,487
3,004
2,349
3,833

6,039
6,497
6,575
6,542
6,191

19,858
19,840
20,712
20,527
20,870

5,039
5,032
5,020
5,035
5,038

32,922
32,980
32,908
32,883
32,773

284,331
282,638
283.671
285,015
283,872

369,348
367,901
368,548
368,983
367,560

102,010
98,142
99,443
98,532
96,769

74,288
75,979
76,879
78,837
79,532

51,650
52,967
53,788
55,193
55,817

22,638
23,012
23,091
23,644
23,715

2,709
3,025
3,070
3,421
2,966

6,723
8,107
8,869
8,733
8,067

1,215
623
15
15

1,254
1,320
1,392
1,326
1,540

6,371
5,918
6,827
7,058
6,350

1,269
1.274
1.275
1.275
1.275

7,681
7,679
7.665
7.665
7,652

55,244
55,625
56,477
55,337
55,999

67,498
67,659
68,588
67,482
68,520

21,056
19,440
19,062
19,782
20,108

18,694
18,873
18,980
19,272
19,487

12,667
12,726
12,753
12,905
12,898

6,027
6,147
6,227
6,367
6,589

958
793
1,438
1,127
972

240
145
150
385

2,821
2,851
2,895
2,849

6,970
6,807
6,959
6,646

1.370
1.370
1.376
1.377

8,537
8,534
8,509
8,485

65,321
65,357
66,404
65,102

80,555
80,710
81,359
79,254

22,884
22,185
22,534
22,136

21,933 15,093
22,944 15,805
22,969 15,660
23,373 16,034

6,840
7,139
7,309
7,339

1,829
2,072
1,683
1,206

645
870

7,283
6,880
7,313
7,022
7,102

1,399
1,401
1,396
1,406
1,415

8,562
8,592
8,590
8,561
8,549

67,283
65,764
66,201
66,558
66,461

81,469
80,090
80,365
80,282
80,183

23,712
20,983
21,479
22,076
20,575

23,452
24,007
24,434
25,244
25,598

15,936
16,389
16,579
17,182
17,511

7,516
7,618
7,855
8,062
8,087

1,801
1,666
1,579
1,959
1,454

May

2 ........................
9
16........................
2 3
30........................

Apr.

1974

May

8*..............

15 * ......................
22*.....................
29*. . .................
N ew York C ity

1973
May

2 ......................
9
1 6
2 3
3 0 ......................

Apr.

3.......................
1 0
17 ......................
2 4

11,785
11,420
11,368
11,206

1* ....................

10,706
11,718
11,353
9,001
11,285

1,425

2,730
2,823
2,789
2,711
2,583

27,790
28,485
27,967
28,582
28,404

454
1,144
1,379
920
1,238

1,637
1,665
1,690
1,676
1,663

10,711
10,393
10,747
10,848
10,871

3.161
3,153
3,159
3.162
3,184

22,671
22,687
22,601
22,643
22,550

187,708
187,634
188,543
189,176
190,085

255,057
255,028
254,990
255,414
257,047

76,176
75,443
75,840
75,201
75,811

37,570
38,777
39,273
39,889
39,967

24,298
25,293
25,795
26,208
26,224

13,272
13,484
13,478
13,681
13,743

280
280
283
365
379

1974

May

8*.............

15* .............
22* .............
29p ....................
Outside
N ew York C ity

1973
May

2 ......................
9 ......................
16......................
2 3
3 0 ......................

Apr.

3 ......................
1 0
17......................
2 4

42,759
43,149
41,935
40,029

583
872
789
1,343

3,496 12,631
3,416 12,300
3,183 12,646
3,164 12,939

3.624
3,621
3,619
3,614

24,225
24.224
24,149
24,182

212,723
213,313
215,297
214,732

284,719
285,562
287,210
285,956

78,556
80,543
80,248
78,212

47,546
48,596
48,784
50,227

33,098
34,007
33,952
35,217

14,448
14,589
14,832
15,010

836
1,337
1,289

l p ....................

39,436
39,414
39,380
38,582
39,127

1,366
842
2,134
2,349
2,408

3,309 12,575
3,674 12,960
3,786 13,399
3,831 13,505
3,608 13,768

3,640
3,631
3.624
3,629
3,623

24,360
24,388
24,318
24,322
24.224

217,048
216,874
217,470
218,457
217,411

287,879
287,811
288,183
288,701
287,377

78,298
77,159
77,964
76,456
76,194

50,836
51,972
52,445
53,593
53,934

35,714
36,578
37,209
38,011
38,306

15,122
15,394
15,236
15,582
15,628

908
1,359
1,491
1,462
1,512

1974

May

8p............

15*....................
22*....................
29*....................

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.




8 Includes minority interest in consolidated subsidiaries.
9 Exclusive o f loans and Federal funds transactions with domestic com ­
mercial banks.
10 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process o f collection.
11 Certificates o f deposit issued in denominations o f $100,000 or more.

JU N E 1974 □ BUSINESS LOANS OF BANKS

A 25

COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
O utstanding

Net change during-

1974

Industry

1974

M ay
22

1,902
8,152
3,016
2,780
4,445

1,925
8,190
3,108
2,803
4,413

1,921
8,317
3,141
2,861
4,462

1,892
8,220
3,161
2,801
4,450

1,900
8,364
3,063
2,742
4,372

-1 2
3
-3 7
75
119

21
409
175
105
274

95
888
217
244
316

84
1,069
358
267
349

-2 4 7
136
90
15
-3 6 3

4,081
3,911
1,468
3,001
2,365

4,216
3,934
1,204
3,071
2,371

4,295
3,988
1,192
3,119
2,385

4,322
3,957
1,187
3,083
2,391

4,279
3,867
1,218
3,048
2,360

-2 4 5
260
3
8

45
122
-7
227
96

299
345
12
272
128

124
570
-1 7 6
255
116

4,208
4,210
1,670
1,718
6,066
6,111
7,029
7,009
6,123
6,086
2,529 2,508
6,362 6,381
6,019
5,990
11,573 11,519
9,002 9,002
1,320
1,376

4,216
1,767
6,108
6,991
6,046
2,465
6,257
5,890
11,523
9,144
1,379

4,164
1,776
6,164
6,983
6,034
2,422
6,289
5,826
11,548
9,267
1,482

4,202
1,902
6,174
7,113
6,087
2,465
6,241
5,789
11,611
9,273
1,458

-5 3
-2 9 2
-1 3
101
58
101
386
299
33
146
28

145
-2 3 7
238
315
-4
253
390
138
296
44
-4 4

50
-1 0 8
258
430
164
73
146
94
310
531
86

4,482 4,468 4,527 4,476 4,381
101,549 101,568 101,994 101,895 101,909

275
1,243

9
3,010

Total commercial and industrial loans
o f large commercial banks............ 120,877 121,019 121,489 121,439 121,270

1,062

3,825

M achinery............................................
Transportation equipm ent................
Other fabricated metal products. . .
O ther durable g o ods..........................
N ondurable goods manufacturing:
F ood, liquor, and tobacco...............
Textiles, apparel, and leather...........
Petroleum refining..............................
Chemicals and ru b b e r.......................
O ther nondurable goods...................
Mining, including crude petroleum
and natural gas.............................

T ran sp o rtatio n ........................................
C om m unication......................................
O ther public utilities..............................
C onstruction ............................................
All other domestic loans.......................
Bankers’ acceptances..............................
Foreign commercial and industrial
lo an s..................................................

May
8

May
1

M ay

A pr.

1973

1973

M ay
29
D urable goods manufacturing:

M ay
15

1974

2nd
h a lf

1st
half

18
479
272
56
290

-2 2 9
615
362
71
-7 3

20
1,453
64
503
872

340
-4 4 0
184
-1 9 8
-6 5

393
235
19
48
156

733
—205
203
-1 5 0
91

-2 3
730
211
809
360

312
357
471
540
105
149
-2 9 1
29
188
541
62

-2 3 3
630
151
-1 8 4
14
-7 8
596
-2 0 0
565
302
199

77
-4 2
43
165
66
-1 3
734
211
362
380
-3 2 2

-1 5 6
588
194
-1 9
80
-9 1
1,330
11
927
682
-1 2 3

331
-5 4 0
567
1,092
294
258
961
878
997
1,754
-1 5 4

181
5,031

125
5,604

23
1,237

-3 8 4
3,243

-3 6 1
4,480

554
11,991

5,247

5,869

1,938

3,371

5,309

13,709

M ar.

I

IV

III

S ee N ote to tab le b e lo w .

“TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
Net change during—

Outstanding
1974

1974

1973

1973

1973

Industry

Durable goods m anufactur­
ing:
Primary metals.....................
M achinery............................
Transportation equipment.
O ther fabricated metal
pro d u cts............................
O ther durable goods...........
Nondurable goods manufac­
turing:
Food, liquor, and tobacco.
Textiles, apparel, and
leather................................
Petroleum refining...............
Chemicals and rubber........
Other nondurable g o o d s. .
Mining, including crude pe­
troleum and natural gas.
T rade: Commodity d e a le rs..
R etail............................
T ransportation.........................
Com m unication.......................
O ther public utilities...............
C onstruction.............................
Services......................................
All other domestic loans
Foreign commercial and in­
dustrial lo an s...................

May
29

Apr.
24

1,111
3,213
1,429

1,083
3,145
1,423

1,064
3,114
1,365

1,046
3,037
1,367

1,092
2,950
1,324

1,104
2,866
1,284

1,240
2,726
1,257

1,259
2,731
1,239

960
2,012

934
1,972

911
1,915

911
1,837

938
1,737

894
1,772

912
1,754

1,585

1,533

1,529

1,527

1,514

1,491

1,120
954
1,686
1,157

1,147
934
1,690
1,145

1,089
945
1,603
1,139

1,043
901
1,569
1,080

1,032
920
1,570
1,069

1,003
933
1,561
1,082

3,170
145
1,405
2,514
4,475
1,033
3,356
1,983
5,254
3,035

3,284
144
1,335
2,543
4,414
978
3,196
1,908
5,223
r2,935

3,245
140
1,323
2,480
4,417
966
3,154
1,898
5,076
2,808

3,203
129
1,315
2,376
4,311
940
3,245
1,940
5,004
2,384

3,153
137
1,265
2,249
4,327
947
3,298
1,943
4,937
2,692

2,958
127
1,190
2,206
4,320
860
3,252
1,905
5,049
2,602

2,361

'2,433

2,370

2,321

2,469

2,334

M ar.
27

Total loans................................ *43,958 '43,399 42,551

Feb.
27

Jan .
30

N ov.
28

O ct.
31

Sept.
26

III

2nd
half

I

IV

1,307
2,680
1,266

-4 0
248
81

-2 0 3
186
18

-2 1
39
77

-7
328
15

-2 2 4
225
95

901
1,795

871
1,788

17
143

23
-1 6

2
98

84
170

25
82

1,469

1,470

1,477

38

14

84

43

98

1,036
839
1,509
1,077

1,033
883
1,534
1,090

1,028
920
1,552
1,100

86
12
42
57

-2 5
13
9
-1 8

59
44
71
37

77
34
2
-3 7

34
57
80
19

2,950
135
1,172
2,227
4,208
828
3,121
1,936
4,916
2,617

2,958
120
1,223
2,175
4,220
819
2,857
1,954
4,777
2,552

2,990
116
1,178
2,147
4,279
858
2,836
1,992
4,719
2,585

287
13
133
274
97
106
-9 8
-7
27
206

-3 2
11
12
59
41
2
416
-8 7
330
17

144
-7
112
141
-2 6
73
427
96
157
384

-2 6
-2 7
11
183
71
39
175
187
223
330

112
4
124
200
15
75
843
9
487
401

2,306

2,308

2,186

36

148

-3 9 9

18

-2 5 1

41,486 41,563 40,793 40,235 39,898

39,875

1,758

918

1,592

1,893

2,510

N ote .—A bout 160 weekly reporting banks are included in this series;
these banks classify, by industry, commercial and industrial loans am ount­
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 B u l l e t in , p. 209.




Dec.
26

II

Commercial and industrial “ term” loans are all outstanding loans with
an original maturity o f more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity of the commitment was in excess of 1 year.

A 26

DEMAND DEPOSIT OW NERSHIP □ JU N E 1974
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1
(In billions of dollars)
rype o f holder
Class o f bank, and quarter or month

Total
deposits,
IPC

Financial
business

Nonfinancial
business

Consumer

1970—Sept.........................................................................................
Dec..........................................................................................

17.0
17.3

88.0
92.7

51.4
53.6

1.4
1.3

10.0
10.3

167.9
175.1

1971—M ar........................................................................................
J u n e .......................................................................................
Sept.........................................................................................

18.3
18.1
17.9
18.5

86.3
89.6
91.5
98.4

54.4
56.2
57.5
58.6

1.4
1*3
1.2
1.3

10.5
10.5
9 .7
10.7

170.9
175.8
177.9
187.5

1972—Ju n e.......................................................................................
Sept........................................................................................
D e c ........................................................................................

17.9
18.0
18.9

97.6
101.5
109.9

60.5
63.1
65.4

1.4
1.4
1.5

11.0
11.4
12.3

188.4
195.4
208.0

1973—M ar........................................................................................
Ju n e............................. ..........................................................
Sept.........................................................................................
D ec.........................................................................................

18.6
18.6
18.8
19.1

102.8
106.6
108.3
116.2

65.1
67.3
69.1
70.1

1.7
2 .0
2.1
2 .4

11.8
11.8
11.9
12.4

200.0
206.3
210.3
220.1

1974—M ar........................................................................................

18.9

108.4

70.6

2.3

11.0

211.2

104.8

Foreign

All
other

All commercial banks:

Weekly reporting banks:
1971—D ec.........................................................................................

14.4

58.6

24.6

1.2

5.9

1972—Dec.........................................................................................

14.7

64.4

27.1

1.4

6 .6

114.3

1973—A p r.........................................................................................
M ay........................................................................................
June.......................................................................................
July........................................................................................
Aug........................................................................................
S e p t......................................................................................
O ct........................................... ..............................................
N ov........................................................................................
Dec.........................................................................................

14.3
13.8
14.2
14.8
14.3
14.5
15.0
14.8
14.9

59.4
59.1
60.8
61.1
59.5
60.6
61.7
62.9
66.2

28.6
26.9
27.1
27.3
27.3
27.2
27.3
27.5
28.0

1.8
1.9
1.9
1.9
1.9
1.9
2.0
2.1
2 .2

6 .4
6.4
6.3
6.6
6.1
6.5
6.6
6.7
6.8

110.4
108.0
110.2
111.7
109.1
110.8
112.5
113.9
118.1

1974—Jan.........................................................................................
Feb.........................................................................................
M ar........................................................................................
A pr.*.....................................................................................

15.2
14.1
14.7
14.7

63.8
62.1
61.5
62.2

28.4
26.9
27.6
29.6

2.3
2.3
2.1
2.1

6.7
6.2
6.3
6.2

116.5
111.5
112.1
114.7

1 Including cash items in process o f collection.
N o t e . —Daily-average balances maintained during m onth as estimated

from reports supplied by a sample o f commercial banks. For a detailed
description o f the type o f depositor in each category, see June 1971
B u ll e tin , p. 466.

DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions o f dollars)
Class o f
bank
All com m ercial. . . .
Insured.................
N ational member
State m em ber.. . .
All m em ber.............

Dec. 31,
1971
680
677
387
95
482

Dec. 31,
1972
559
554
311
71
381

June 30,
1973
538
533
304
71
375

Dec. 31,
1973
507
503
288
64
352

1 Beginning Nov. 9,1972, designation o f banks as reserve city banks for
reserve-requirement purposes has been based on size o f bank (net demand
deposits o f more than $400 million), as described in the B u ll e t in for
July 1972, p. 626. Categories shown here as “ Other large” and “ All other
member” parallel the previous “ Reserve City” (other than in New York
City and the City o f Chicago) and “ C ountry” categories, respectively
(hence the series are continuous over time).




Class of
bank
All member—Cont.
O ther large banks 1
All other member 1
All nonm em ber.........
In su red ....................
N oninsured.............

Dec. 31,
1971

112
371
197
195
2

Dec. 31,
1972

69
313
177
172
5

June 30,
1973

63
312
163
158
5

Dec. 31,
1973

58
294
155
152
3

N o t e .—Hypothecated deposits, as shown in this table, are treated one
way in m onthly and weekly series for commercial banks and in another
way in call-date series. T hat is, they are excluded from “ Time deposits”
and “ Loans” in the m onthly (and year-end) series as shown on pp. A-16;
from the figures for weekly reporting banks as shown on pp. A-20-A-24
(consumer instalment loans); and from the figures in the table at the
bottom of p. A-15. But they are included in the figures for “Time de­
posits” and “ Loans” for call dates as shown on pp. A-16-A-19.

JU N E 1974 □ LOAN SALES BY BANKS; OPEN MARKET PAPER

A 27

LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS
(Amounts outstanding; in millions o f dollars)
To own subsidiaries, foreign branches,
holding companies, and other affiliates
D ate

To all others except banks

By type o f loan

By type o f loan

Total

Total

Commercial
and
industrial

All other

Commercial
and
industrial

All other

1974—Feb.

6 ...........
13...........
2 0 ...........
27 ...........

4,605
4,729
4,933
4,992

2,638
2,687
2,673
2,748

1,967
2,042
2,260
2,244

1,780
1,389
1,342
1,414

341
333
336
337

1,439
1,056
1,006
1,077

M ar.

6 ..........
1 3...........
2 0 ...........
27...........

4,939
4,935
4,840
4,904

2,754
2,768
2,787
2,834

2,185
2,167
2,053
2,070

1 ,414
1,420
1 .419
1,454

339
339
340
369

1,075
1,081
1 ,079
1,085

Apr.

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

5,114
5,063
5,043
5,386

2,893
2,911
2,874
3,080

2,221
2,152
2,169
2,306

1,440
1,443
1,448
1,457

358
356
360
367

1,082
1,087
1,088
1,090

M ay

1 ...........
8. , .
15
22
29

5,399
5,536
5,442
5,567
5,653

3,020
3,069
3,039
3,084
3,112

2,379
2,467
2,403
2,483
2,541

1,471
1,475
1,457
1,455
1,442

379
375
358
357
359

1,092
1,100
1,099
1,098
1,083

N ot e .— A m o u n ts so ld u nd er repurchase a g reem en t are e x c lu d ed . F ig u res in c lu d e sm a ll a m o u n ts so ld
by b a n k s o th e r th a n large w e e k ly rep o rtin g b a n k s.

COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING
(In millions of dollars)
Commercial and finance
company paper

Dollar acceptances
Held b y -

Placed through
dealers

End of period

Based on—

Placed
directly
Accepting banks

Total

Total
Others
Bank
related

Bank
O th er1 related

Bills
bought

Own
acct.

Ex­
ports
from
United
States

All
other

3,078
1,940
1,478
1,707

3,392
3,603
4,317
4,428
5,451
7,058
7,889
6,898

1,223
1,198
1,906
1,544
1,567
2,694
3,480
2.706

1,094
983
1,447
1,344
1.318
1,960
2,689
2,006

129
215
459
200
249
735
791
700

187
193
164
58
64
57
261
106

144
191
156
109
146
250
254
179

1,837
2,022
2,090
2,717
3,674
4,057
3,894
3,907

792
997
1,086
1,423
1,889
2,601
2,834
2,531

974
829
989
952
1 ,153
1,561
1,546
1,909

1,626
1,778
2,241
2,053
2,408
2,895
3,509
2,458

1,044 8,290
1,148 8,288
1,173 8,316
1,207 7,954
1,350 7,676
1,353
8,845
1,319 11,727
1,317 12,824
1,311 11,751

2,767
2,922
3,110
3,307
3,758
3,878
3,549
3,655
3,570

22,303
23,314
23,187
22,995
24,365
23,565
25,007
25,149
24,441

6,713
7.237
7,693
7,734
8,170
8.237
8,493
8,892

2,068
2,197
2,185
2,254
1,968
2,099
2,042
2,566
2,837

1,641
1,763
1,746
1,803
1,598
1,629
1,731
2,129
2.318

427
433
439
452
370
470
311
437
519

136
83
66
132
84
145
107
71
68

344
384
395
496
522
548
589
604
581

4,165
4,225
4,591
4,810
5,159
5,379
5,499
5,252
5,406

1,996
2,009
2,053
2,222
2,268
2,296
2,345
2,320
2,273

2,359
2,509
2,755
2,954
2,945
3,289
3,222
3,340
3,499

2,359
2,371
2,428
2,517
2,520
2,585
2,670
2,833
3,120

1,429
1,449
1,508
1,664

4,072
4,080
4,537
5,170

26,000 9,101
25,738 9,364
25,125 10,166
24,516 10,692

2.706
2,854
2,986
3,232

2,251
2.328
2,413
2,744

454
525
573
488

68
69
296
216

589
592
684
700

5,738
5,850
6,200
6,544

2,334
2,434
2,827
2,900

3,492
3,182
2,979
2,833

3,275
3,748
4,361
4,959

9,300
13,645
17,085
21,173
32,600
33,071
32,126
34,721

1,903
3,089
4,901
7,201
1,216 10,601
409 12,262
495 10,923
930 11,242

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

34,404
35,672
35,786
35,463
37,149
37,641
41,602
42,945
41,073

1974—Jan..
Feb.
Mar.
Apr.

45,491
47,164
44,690
44,677

13,990
15,897
13,520
13,327

6,S

1 As reported by dealers; includes finance company paper as well as
other commercial paper sold in the open market.
2 As reported by finance companies that place their paper directly with
investors.




Own
bills

Im ­
ports
into
United
States

7,397
10,556
12,184
13,972
17,705
18,460
19,230
20,842

5
6
7
8
9
0
1
2

196
196
196
196
196
197
197
197

O ther2

For­
eign
corr.

N ote .— Back data available from Financial Statistics Division, Federal
Reserve Bank o f New York.

A 28

INTEREST RATES o JU N E 1974
PRIME RATE CHARGED BY BANKS

(Per cent per annum)
Effective date
1972—Jan.

3.,
17.,
24.
31.,

Feb. 28.,

4Vl-4V4*-5

Apr.

4V4m~5

1.,
30.,

June 12.,
26.,
July

3.,
10.
17.,
31.,

Aug. 11.,
14.

21.
25.

29.
Sept.

4.

ll’.

25.

Nov.

4Vs-4'A-

4 y4m
4 ^ -4 3 4 .
4 34 434 . ^ 7/ 3-5

May

5%«-53^
5%-5%«
5345%»-5%

5-5M-5V4* 1972—Oct.
4y4-5-5V4m
4 y 8-4 y 4-5m

M ar. 13.,
23.,
27.,
3..
5..
17.,

Rate

Effective date

Rate

55--5V4
5--5i/g-5V4
55«-5i/8

53^.

6.
2 0 .,

534«-57/8

4 ..

Feb.

2 ..
1 4..
2 6 ..
2 7 ..

5- 514 *

5V4*-5K

5i/4._53/85%
5%
»-5%
5l/4._53
/8„
5%
5%«—
5%
5i/4«
5%
--5%5i/4.-53/8
5V
i
51/4-53/85%»
5%-5%5Vi"
5%«-5%
5%»-5%534

534-6.

6--6V4

Sept. 14.............
18.............
27.............

10 .
934-10-

Oct. 2 2 .............
2 4 .............

9V i-934 - 1 0 91/2-934--10

11974 —Apr.

2.

934 . - 1 0

15.
19.

Apr. 18.
19.,

61/2-634-

M ay

634.-7

7............

634 .

4.
7.
24.
25.

i%-iy4

7-7%■

M ar.

7Vi«
71/2 «-734
73/4 .

19............
21............
22............
26............
28............
29............

81/4 . - 8 %

814-81/281/i*
8 Vi-8 34 .

N o te .— B e g in n in g N o v . 1971, se v er a l b a n k s a d o p te d a flo a tin g p rim e
rate keyed to m o n e y m ark et va ria b les. - d e n o te s th e p r e d o m in a te p rim e
rate q u o te d b y c o m m e r c ia l b a n k s to large b u sin e sse s.

4 ............
5 ............

734--8
73/ 4 - 8 .
8-814"

July

25.
26.

Feb. 11............ 9-914-93 /10
19............ 9 - - 9 14
25............ 8Vio-8%«-9
26............. 87/io-834-

7.

8.
19.
25.

23.
24.

9V i-9 3 4 .99/io
14............. 9 % -9 % « 98/io
29............ 9 14-9 V i-9Vio

1974—Jan.

6% .-634
6Vi-

9 14 --94/10-

9Vi

914 - 94 / 10-

6.-6V4
61/4-

Rate

Effective date

6.

M ar. 19.
26.,

June

Rate

1973—Aug. 6 ............. 834-97 ............. 9 13............. 9-91421............. •914 --9 Vi
22............. 91/228............. 9V i-9342 9 ............. 934-

534 b-6

Dec. 2 6 ..
27.,
1973—Jan.

Effective date

30.

9% 9Vio-9%«934
94/io-9 Vi934934 . - 98/ 1010
934-98/101 0.
1O.-1OV101014

10-1 01/101014 1014--104/10
101/4 104/1010Vi
1014 - 104/1010VilOVio-

10Vi—
—
1034-11
lOVi-10®/io1034-11

May

8V i-87/io834"
8Vi—86/io83/4834 . - 8 8/io
8 34 .-88/,o-9
88/i<>-9.
9.
9 . - 9 14
9-9V4--9Vi

2.

10i/2-10«/io1034 *-11

106/io-1034B
-11
IO6/10-IO34-

7.,
10.
13.
17.,
20.

11B
111
11 - 1 114"
1114«-114/10

1114-11-4/10
-11 Vi"
llVi«-ll34

Effective Apr. 16, 1973, with the adoption o f a two tier or “dual prim e
rate,” this table shows only the “ large-business prim e rate,” which is the
range of rates charged by commercial banks on short-term loans to large
businesses with the highest credit standing.

RATES ON BUSINESS LOANS OF BANKS
Size o f loan (in thousands o f dollars)
1-9

All sizes

10-99

100-499

500-999

1,000 and over

Center
Feb.
1974

Nov.
1973

Feb.
1974

Nov.
1973

Feb.
1974

Nov.
1973

Feb.
1974

Nov.
1973

Feb.
1974

Nov.
1973

10.43
10.31
10.86
10.38
10.16
10.28
10.28

10.06
9.78
10.48
10.14
9.90
9.99
9.83

10.18
10.01
10.58
10.19
9 .97
10.04
10.13

9.75
9 .62
9.99
9.82
9.60
9.82
9.68

9.95
9.83
10.32
9.91
9.89
9.97
9.95

10.20
10.33
10.55
9 .70
9.83
11.22
10.16

9.78
9 .72
9.65
10.03
9.35
10.43
9.65

10.23
10.21
10.32
10.55
9.75
10.72
10.04

9.79
9.92
10.25
9.9 7
10.14
10.35
9.51

10.11
10.31
10.00
10.24
10.05
10.64
9.8 8

10.23
10.45
9.83
10.12
13.07
10.15
9.80

10.24
9.95
10.58
10.10
14.20
9.63
10.22

10.54
10.60
9.94
10.25
15.73
10.59
10.73

10.09
10.02
10.58
10.57
8.90
9.79
9.55

10.78
11.12
10.29
11.16
10.96
10.21
10.15

Feb.
1974

Nov.
1973

Short-term
35 centers.........................................
New Y ork C ity ..........................
7 O ther N o rth east.....................
8 N orth C entral.........................
7 Southeast..................................
8 Southw est................................
4 West C oast...............................

9.91
9.68
10.28
9.98
9 .8 0
9.93
9.78

10.08
9 .90
10.51
10.02
9 .96
10.08
10.04

9.86
9.93
10.42
9.18
9.69
9.90
10.16

9.80
10.04
10.34
9.02
9.58
9.91
10.23

10.09
10.12
10.46
9.98
9.81
9.98
10.08

10.14
10.28
10.57
9.81
9.82
10.09
10.26

10.28
9.95
10.71
10.42
10.02
10.04
10.05

Revolving credit
35 centers.........................................
New Y ork C ity ..........................
7 O ther N o rth east.....................
8 N orth C entral.........................
7 Southeast..................................
8 Southw est................................
4 W est C o ast..............................

9 .82
9.91
10.20
10.00
9.96
10.34
9.58

10.13
10.30
10.09
10.22
9.2 2
10.74
9.92

10.22
9.32
9.82
11.14
9.75
10.58
10.24

10.09
9.84
10.36
9.96
9.11
10.46
10.09

10.09
9.60
10.27
10.27
9.88
9.97
10.11

10.18
10.09
10.69
10.17
9.54
10.19
10.21

10.10
9.99
10.32
10.17
10.09
10.32
10.04

Long-term
35 centers.........................................
New Y ork C ity ..........................
7 O ther N o rth east.....................
8 N orth C entral.........................
7 Southeast..................................
8 Southwest.................................
4 West C o ast...............................

10.16
10.03
10.48
10.48
10.93
9.90
9.75

10.68
11.05
10.17
10.92
12.33
10.28
10.18

10.74
10.93
10.51
10.49
10.88
10.75

10.36
9.69
10.80
10.08
9.10
10.95
9.92

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 the June 1971 B u ll e tin .


10.42
10.93
10.07
9.69
13.59
10.23
10.21

10.45
10.92
10.32
10.40
10.98
10.22
10.29

10.47
10.06
10.19
10.45
12.48
10.56
10.64

JU N E 1974 □ INTEREST RATES

A 29

MONEY MARKET RATES

(Per cent per annum)
Prime
commercial
paper i

1967...........................
1968...........................
1969............................
1970...........................
1971...........................
1972...........................
1973...........................
1973—M ay ...............
Ju n e ...............
July................
Aug................
Sept...............
O ct.................
N ov................
Dec.................

4.66
8 .2 0

7.26
8 .0 0

9.26
10.26
10.31
9.14
9.11
9.28

CO.

Prime
bankers’
accept­
ances,
90 days 1

Fed­
eral
funds
ra te 3

4- to 6 months

paper
placed
directly,
3- to 6 months*

5.10
5.90
7.83

4.89
5.69
7.16

4.75
5.75
7.61

4 .22
5.66
8 .2 1

4.321
5.339
6.677

4.29
5.34
6.67

4.630
5.470
6.853

4.61
5.47
6 .8 6

4.71
5.46
6.79

4.84
5.62
7.06

5.07
5.59
6.85

7.72
5.11
4.69
8.15

7.23
4.91
4.52
7.40

7.31
4.85
4.47
8.08

7.17
4.66
4 .44
8.74

6.458
4.348
4.071
7.041

6.39
4.33
4.07
7.03

6.562
4.511
4.466
7.178

6.51
4.52
4.49
7.20

6.49
4 .67
4 .77
7.01

6.90
4.75
4.86
7.30

5.85
6.92

7.27
7.99
9.18

6.85
7.45
8.09
8.90
8 .90
7.84
7.94
8.16

7.15
7.98
9.19
10.18
10.19
9.07
8.73
8.94

7.84
8.49
10.40
10.50
10.78

6.36
7.19
8.67
8.29
7.22
7.83
7.45

6.615
7.234
8.081
8.700
8.537
7.259
7.823
7.444

6.62
7.23

10.03
9.95

6.348
7.188
8.015
8.672
8.478
7.155
7.866
7.364

6.63
7.05
7.97
8.32
8.07
7.17
7.40
7.01

6.83
7.27
8.37
8.82
8.44
7.42
7.66
7.38

6.78
6.76
7.49
7.75
7.16
6.81
6.96
6.80

8.72
7.83
8.43
9.61

7.755
7.060
7.986
8.229
8.430

7.77
7.12
7.96
8.33
8.23

7.627
6.874
7.829
8.171
8.496

7.65
6.96
7.83
8.32
8.40

7.01
6.51
7.34
8.08

7.46
6.93
7.86

8 .2 1

8.78

6.94
6.77
7.33
7.99
8.24

6.80
6.52
6.41
6.42

7.33
6.87
6.83
6.87

6.94
6.74
6.70
6.76

8.24

6.71
6.96
7.06
7.56
7.84

7.15
7.34
7.59
8.15
8.49

6.93
7.06
7.16
7.48
7.69

8.31
8.34
8.18
8.27

7.95
8.05
8.05
8.14

8.48
8.55
8.61
8.82

7.91
7.98
7.94
8.04

8.73
8.71

8.45
8.46
8 .1 1

8.28

7.99

9.10
9.21
8.79
8.39

8.29
8.51

8 .1 2

8.26

8 .0 6

8.46

8.07

Period
90-119
days

U.S. G overnment securities 4

Finance

10.21

10.23
8.92
8.94
9.08

3-month bills 5
Rate
on new
issue

10.01

M arket
yield

8 .0 1

6 -m onth bills 5

R ate
on new
issue

M arket
yield

8 .1 2

8.65
8.45
7.32
7.96
7.56

8.64
9.92
10.82

7.82
8.42
9.79
10.62

7.92
7.40
7.76
8.43
8.94

10.68

9.65
8.97
9.35
10.51
11.31

2 ........
9 ........
16........
23........

8.45
8.15
7.94
7.84

8.38
7.93
7.75
7.69

7.93
7.53
7.38
7.31

8.55
7.85
7.75
7.75

9.47
9.13
8.93
9.07

7.778
6.951
7.081
7.018

7.55
7.03
7.06
7.07

7.516
6.747
6.882
6.787

7.31
6.91

2 ........
9 ........
16........
23
30........

8 .0 0
8 .2 0

7.88

7.85

8 .0 0

8.43
8.73
9.3 0

8.18
8.50
9.1 0

7.30
7 .50
7.75
7.85

8.81
8.98
9.03
9.33
9.61

7.188
7.675
7.920
8.047
8.300

7.36
7.71
7.82
8.06
8.35

7.081
7.566
7.637
7.882
8.231

7.27
7.53
7.59

9.53
9 .70
9.88
10.23

9.93

8.51
8.49
8.05

8.211

4 ........

10.85

11 ........

1 1 .0 0
1 1 .0 0

8.81
8.60

1974—Jan .................
Feb.................
M ar................
A pr.................
M a y ...............

8 .8 6
8 .0 0

8 .6 6

9- to 12-month issues
1-year

bill (m ar­ O ther 6
ket yield ) 5

8 .6 6

3- to 5year
issues 6

7.37

5 .7 7

Week ending—
1974—Feb.

M ar.

Apr.

6 ........

13
2 0 ........

2 7........
May

June

8 .0 0

8 .0 0

8.08
8.60
9 .1 0

9.38
9 .60
9.73
10.13

8.25
8.40
8.50
8.50

9 .30
9 .5 0
9 .50
9.85

10.36
10.78

8.358
8.648
8.051
7.857

8.70
8 .90
9 .00
9 .00

10.35
10.70
10.75
10.75

11.17
11.29
11.46
10.95

8.909
9.036
8.023
8.197

7.90

8.796
9.006
8.031
8.440

9 .00

10.75

11.54

7.983

8.04

8.205

18........
25 . . .

10.63

10.73
10.83
10.80
10.38

1........

10.56

10.31

10.02

1 Averages o f the m ost representative daily offering rate quoted by
dealers.
2 Averages o f the m ost representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Seven-day averages for week ending Wednesday. Beginning with
statem ent week ending July 25, 1973, weekly averages are based on the
daily average o f the range o f rates on a given day weighted by the volume
of transactions at these rates. F o r earlier statem ent weeks, the averages
were based on the daily effective rate—the rate considered m ost repre­




8 .1 0

8 .0 0

8.393
8.084
7.995

6 .8 6

6.87

8 .0 2

8 .2 0

8.09

sentative o f the day’s transactions, usually the one a t which m ost trans­
actions occurred.
4 Except for new bill issues, yields are averages computed from daily
closing bid prices.
5 Bills quoted on bank-discount-rate basis.
®Selected note and bond issues.
N o t e . —Figures for Treasury bills are the revised series described on p.
A-35 o f the Oct. 1972 B u l l e t in .

A 30

INTEREST RATES □ JU N E 1974
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds

Corporate bonds

State and local
Period

United
States
(long­
term)

A aa utility

Stocks

By selected
ratine

By
group

Dividend /
r>rir#» rat in

Earnings /
price ratio

Total i
Total i

Aaa

Baa

New
issue

Re­
cently
offered

Aaa

Baa

Indus­
trial

Rail­
road

Public
utility

Pre­
ferred

Com-

Com-

6.46
5.41
5.50

Seasoned issues
1970.....................
1971.....................
1972.....................
1973 ....................

6.59
5.74
5.63
6.30

6.42
5.62
5.30
5.22

6.12
5.22
5.04
4.99

6.75
5.89
5.60
5.49

8.68
7.62
7.31
7.74

8.71
7.66
7.34
7.75

8.51
7.94
7.63
7.80

8.04
7.39
7.21
7.44

9.11
8.56
8.16
8.24

8.26
7.57
7.35
7.60

8.77
8.38
7.99
8.12

8.68
8.13
7.74
7.83

7.22
6.75
7.27
7.23

3.83
3.14
2.84
3.06

1973—M ay........
J u ly ........
A u g .........
Sept..........
Oct...........
N ov.........
D ec..........

6.22
6.32
6.53
6.81
6.42
6.26
6.31
6.35

5.13
5.25
5.44
5.51
5.13
5.03
5.21
5.14

4.90
5.05
5.21
5.26
4.90
4.76
5.03
4.90

5.41
5.51
5.71
5.80
5.41
5.31
5.46
5.43

7.51
7.64
8.01
8.36
7.88
7.90
7.90
8.00

7.50
7.64
7.97
8.22
7.99
7.94
7.94
8.04

7.62
7.69
7.80
8.04
8.06
7.96
8.02
8.05

7.29
7.37
7.45
7.68
7.63
7.60
7.67
7.68

8.06
8.13
8.24
8.53
8.63
8.41
8.42
8.48

7.41
7.49
7.59
7.91
7.89
7.76
7.81
7.84

8.01
8.07
8.17
8.32
8.37
8.24
8.28
8.28

7.63
7.69
7.81
8.06
8.09
8.04
8.11
8.17

7.13
7.25
7.35
7.43
7.38
7.18
7.40
7.76

3.01
3.06
3.04
3.16
3.13
3.05
3.36
3.70

1974—Jan...........
Feb..........
M ar.........
A pr..........
M ay. . . .

6.56
6.54
6.81
7.04
7.07

5.23
5.25
5.44
5.76
6.09

5.03
5.05
5.20
5.45
5.89

5.49
5.49
5.71
6.06
6.30

8.21
8.12
8.46
8.98
9.24

8.22
8.23
'8 .4 4
8.94
9.13

8.15
8.17
8.27
8.50
8.68

7.83
7.85
8.01
8.25
8.37

8.58
8.59
8.65
8.88
9.10

7.97
8.01
8.12
8.39
8.55

8.34
8.27
8.35
8.51
8.73

8.27
8.33
8.44
8.68
8.86

7.60
7.47
7.56
7.83
8.11

3.64
3.81
3.65
3.86
4.00

6.93
'7 .0 9
8.31

Week ending—
1974— Apr.

6.
13.
2 0.
27.

7.02
7.04
6.99
7.07

5.73
5.83
5.69
5.80

5.40
5.50
5.40
5.51

6.00
6.15
6.00
6.10

8.78
9.13
8.91
8.98

8.75
8.92
8.95
9.08

8.43
8.49
8.51
8.55

8.17
8.25
8.26
8.28

8.79
8.87
8.89
8.94

8.30
8.36
8.41
8.45

8.42
8.48
8.51
8.57

8.62
8.69
8.66
8.71

7.75
7.81
7.83
7.91

3.80
3.88
3.80
3.95

M ay

4.
11 .
18.
25.

7.11
7.09
7.02
7.08

6.00
6.11
6.06
6.06

5.80
5.90
5.90
5.90

6.25
6.40
6.30
6.30

9.27
9.27
9.23
9.34

9.15
9.11
9.13
9.10

8.62
8.64
8.67
8.71

8.34
8.38 '
8.36
8.38

8.99
9.02
9.07
9.16

8.52
8.56
8.53
8.56

8.64
8.69
8.73
8.77

8.76
8.77
8.83
8.89

8.04
8.08
8.12
8.10

3.90
3.91
3.96
4.12

June

1.

7.06

6.09

5.95

6.30

9.09

9.15

8.75

8.39

9.23

8.60

8.81

8.95

8.20

4.13

Number of
issues2.............

13

20

5

5

30

41

30

40

14

500

121

1 Includes bonds rated Aa and A, data for which are not shown sep­
arately. Because o f a limited number of suitable issues, the number
o f corporate bonds in some groups has varied somewhat. As o f Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2 N um ber 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: M onthly and weekly yields are computed as follows: (1) U.S.
G o vt.: Averages o f daily figures for bonds maturing or callable in 10 years
or more; from Treasury Dept. (2) S tate and local g o v t.: General obligations

20 |

500

only, based on Thurs. figures; from M oody’s Investor Service. (3) C or­
p o ra te: Rates for “ New issue” and “ Recently offered” Aaa utility bonds
are weekly averages compiled by the Board o f Governors o f the Federal
Reserve System. Rates for seasoned issues are averages of daily figures
from M oody’s Investors Service.
Stocks: Standard and P oor’s corporate series. Dividend/price ratios
are based on Wed. figures; earnings/price ratios are as o f end o f period.
Preferred stock ratio is based on eight median yields for a sample o f noncallable issues— 12 industrial and 2 public utility; common stock ratios
on the 500 stocks in the price index. Q uarterly earnings are seasonally
adjusted at annual rates.

NOTES TO TABLES ON OPPOSITE PA G E:
Security Prices:

Stock M arket Customer Financing:

1 Through Aug. 1973 the index is based upon an initial value o f 10.90—
the average price o f a share o f stock listed on the American Stock Exchange
was $10.90 on June 30, 1965. As o f Sept. 1973, a new market-value index
with a starting value of 100.00 replaced the previous series. An index for
past periods is being calculated on the new m arket-value basis and will be
published as it becomes available.

1 M argin credit includes all credit extended to purchase or carry stocks
o r related equity instrum ents and secured at least in part by stock (see
Dec. 1970 B u l l e t in ) . C redit extended by brokers is end-of-month data
for member firms o f the New Y ork Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which ac­
counted for 60 per cent of security credit outstanding at banks on June 30,
1971.
2 In addition to assigning a current loan value to m argin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise o f subscription rights.
3 Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System’s list of Over the Counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated; at brokers, such stocks have no loan value.
4 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to w ithdrawal by customers on demand.

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 p. A-30 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 o f a 4 per cent, 20year b o n d ; Wed. closing prices. Common stocks, derived from com­
ponent common stock prices. A verage daily volume o f trading, normally
con du cted 5 days per week for 5 Vi hours per day, or 27 Vi hours per week.
In recent years shorter days and/or weeks have cut total weekly trading
to the following number o f ho u rs:




JU N E 1974 □ SECU RITY MARKETS

A 31

SECURITY PRICES
C om m on stock prices
Volume of
trading in
stocks
(thousands of
shares)

New York Stock Exchange

Bond prices
(oer cent o f oar)

Standard and Poor’s index
(1941-43= 10)

Period

U.S.
Govt.
(long­
term)

State
and
local

Cor­
porate
AAA

1970............................
1971............................
1972............................
1973............................

60.52
67.73
68.71
62.80

72.3
80.0
84.4
85.4

61.6
65.0
65.9
63.7

1973—M ay ...............
Ju n e ...............
July.................
Aug.................
S ep t................
Oct..................
N ov................
D ec.................

63.43
62.61
60.87
58.71
61.81
63.13
62.71
62.37

86.1
85.8
83.2
82.2
86.2
86.9
85.6
86.1

64.7 107.22
64.4 104.75
63.8 105.83
61.0 103.80
61.3 105.61
62.1 109.84
62.1 102.03
62.9 94.78

1974— Jan..................
Feb.................
M ar................
A pr.................
M ay . .............

60.66
60.83
58.70
57.01
56.81

85.2
85.3
83.5
80.2
77.3

62.3
62.0
61.3
60.3
59.7

Amer­
ican
Stock
Ex­
change
total
in d e x 1

New York Stock Exchange index
(Dec. 31, 1965 = 50)

Indus­
trial

Rail­
road

Public
utility

Total

Indus­
trial

Trans­
porta­
tion

Utility

F i­
nance

83.22 91.29
98.29 108.35
109.20 121.79
107.43 120.44

32.13
41.94
44.11
38.05

54.48
59.33
56.90
53.47

45.72
54.22
60.29
57.42

48.03
57.92
65.73
63.08

32.14
44.35
50.17
37.74

37.24
39.53
38.48
37.69

54.64
70.38
78.35
70.12

10,532
17,429
16,487
16,374

3,376
4,234
4,447
3,004

119.95
117.20
118.65
116.75
118.52
123.42
114.64
106.16

36.14
34.35
35.22
33.76
35.49
38.24
39.74
41.48

55.43
54.37
53.31
50.14
52.31
53.22
48.30
45.73

56.74
55.14
56.12
55.33
56.71
59.26
54.59
50.39

62.22
60.52
61.53
61.09
62.25
65.29
60.15
55.12

36.66
33.72
34.22
33.48
35.82
39.03
36.31
34.69

39.01
37.95
37.68
35.40
36.79
37.47
34.73
33.47

65.33
97.11 15,329
63.52 92.60 12,796
68.95
97.67 14,655
68.26 99.23 14,761
72.23 101.88 17,320
74.98 107.97 18,387
67.85 99.91 19,044
62.49
88.39 19,227

3,043
2,316
2,522
1,796
2,055
3,388
3,693
3,553

96.11
93.45
97.44
92.46
89.67

107.18
104.13
108.98
103.46
101.17

44.37
41.85
42.57
40.26
37.04

48.60
48.13
47.90
44.03
39.35

51.39
50.01
52.15
49.21
47.35

55.77
54.02
56.80
53.95
52.53

36.85
36.26
38.39
35.87
33.62

35.89
35.27
35.22
32.59
30.25

64.80
62.81
64.47
58.72
52.85

95.32
95.11
99.10
93.57
84.71

16,506
13,517
14,745
12,109
12,512

2,757
2,079
2,123
1,752
1,725

Total

NYSE A M EX

96.63
113.40
129.10
103.80

Week ending—
1974— M ay

4 ........
11........
18........
2 5 ........

56.49
56.66
57.12
56.69

78.2
77.1
77.1
76.9

59.7
59.7
59.8
59.6

91.22
91.73
89.95
87.75

102.75
103.41
101.53
99.04

38.83
38.40
37.39
35.56

40.93
40.68
39.18
38.46

48.39
48.54
47.48
46.23

48.39
53.79
52.75
51.33

34.81
34.78
33.81
32.41

31.04
31.09
30.18
29.66

56.49
54.54
52.41
51.03

90.22 12,198
88.20 12,397
84.48 11,874
80.48 13,350

1,567
1,512
1,768
1,971

June

1.........

56.84

77.1

59.6

87.49

98.83

35.24

37.99

46.04

51.18

32.29

29.30

50.74

81.54

1,653

11,831

For notes see opposite page.

STOCK MARKET CUSTOMER FINANCING
(In millions o f dollars)
M argin credit at brokers and banks 1
Regulated 2

M argin stock
Total

Free credit balances
at brokers 4

By type

By source

End o f period

Unregu­
lated 3

C onvertible
bonds

Brokers Banks

Subscription
issues

N onmargin
stock
credit at
banks

Brokers Banks Brokers Banks Brokers Banks

M argin
accts.

C ash
accts.

1973—A pr........................................
M ay ......................................
Ju n e ......................................
July........................................
Aug........................................
Sept.......................................
Oct.........................................
Nov........................................
D ec........................................

8,165
7,650
7,369
7,299
7,081
6,954
7,093
’’6,774
6,382

7,293
6,784
6,416
6,243
6,056
5,949
5,912
5,671
5,251

872
866
953
1,056
1,025
1,005
1,181
1,003
1,131

7,040
6,540
6,180
6,010
5,830
5,730
5,690
5,460
5,050

804
802
885
976
949
929
1,105
1,027
1,070

232
224
215
216
210
204
203
197
189

49
47
53
64
61
60
59
60
46

21
20
21
17
16
15
19
14
12

19
18
15
16
15
16
17
16
15

1,952
1,992
1,973
1,957
1,952
1,909
1,878
1,917
1,866

389
413
396
379
348
379
419
464
454

1,536
1,564
1,472
1,542
1,462
1,632
1,713
1,685
1,700

1974— Jan.........................................
Feb........................................
M ar.......................................
A pr........................................

6,343
6,462
6,527

5,323
5,423
5,519
5,558

1,020
1,039
1,008

5,130
5,230
5,330
5,370

961
977
944

182
183
180
179

45
46
48

11
10
9
9

14
16
16

1,799
1,843
1,869

442
420
424
411

1,666
1,604
1,583
1,438

For notes seeopposite page.




i

A 32

STOCK MARKET CREDIT; SAVINGS IN S TITU TIO N S □ JU N E 1974

EQUITY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS

SPECIAL MISCELLANEOUS ACCOUNT BALANCES
AT BROKERS, BY EQUITY STATUS OF ACCOUNTS

(Per cent o f total debt, except as noted)

(Per cent o f total, except as noted)

Equity class (per cent)

Total
End o f
period

(mil­
lions
of
dol­
lars)!

80 or
more

70-79

60-69

50-59

40-49

U nder
40

1973—A p r..
M ay .
Ju n e.
Ju ly ..
A ug..
Sept..
Oct. .
N ov..
D e c ..

7,040
6,540
6,180
6,010
5,830
5,730
5,690
5,460
5,050

4 .8
4 .9
4 .9
5 .8
5 .0
5 .0
7 .2
5 .4
5.8

7.3
7 .2
7.1
8 .8
8 .4
13.9
10.0
6.1
7 .7

13.4
12.7
13.2
17.7
16.4
18.9
19.9
12.0
14.4

19.8
18.7
17.5
22.7
19.6
23.9
22.6
16.9
17.4

22.4
21.9
22.1
25.3
24.2
23.5
22.1
19.5
20.3

32.4
34.9
35.3
19.7
2 6.4
16.8
18.2
40.1
34.2

1974— J a n ... 5,130
Feb... 5,230
M ar.. 5,330
A p r .. 5,370

5.5
5 .4
5 .0
4 .4

8 .0
7 .4
7 .0
6 .0

14.2
13.3
11.4
9 .9

22.6
22.6
19.4
16.5

25.8
28 .0
30.2
26.5

2 4.0
23.3
27.1
37.0

N et
credit
status

End o f period

1 S ee n o te 1 to ta b le a t b o tto m o f p. A - 3 1.
N ote .— E ach c u s to m e r ’s e q u ity in h is co lla ter a l (m a rk et va lu e o f c o l­
lateral less n et d e b it b a la n c e ) is e x p ressed as a p e r c en ta g e o f current c o l­
lateral values.

Equity class o f accounts
in debit status

Total
balance
(millions
60 per cent Less than
or more 60 per cent o f dollars)

1973—A pr.........................
M ay .......................
Ju n e .......................

35.3
35.8
35.8
35.9
35.9
37.4
38.5
37.5
39.4

46.9
45.0
43.5
46.7
45.6
53.1
46.7
42.2
40.0

18.0
19.1
20.7
17.4
18.5
9 .4
14.8
20.3
20.6

5,660
5,670
5,750
5,740
5,650
5,740
5,860
5,882
5,935

1974—Jan ..........................
Feb.........................

38.3
39.4
40.0
39.6

42.7
43.3
41.2
42.3

18.0
24.9
18.9
19.4

6,596
6,740
6,784
6,526

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 o f other
collateral in the custom er’s margin account or deposits of cash (usually
sales proceeds) occur.

MUTUAL SAVINGS BANKS
(In millions o f dollars)
Loans

End o f period

M ort­
gage

O ther

Securities

U.S.
Govt.

1970.................
1971................
19723...............

57,775
62,069
67,563

2,255
2,808
2,979

3,151
3,334
3,510

1973—M a r ...
A pr__
M a y ...
J u n e ...
J u ly ...
A ug.. . .
Sep t.. .
O ct___
N o v ....
D ec___

68,920
69,426
69,988
70,637
71,219
71,713
72,034
72,367
72,760
73,231

3,970
3,831
4,099
3,959
3,819
3,986
4,200
4,181
4,424
3,871

3,458
3,388
3,376
3,346
3,190
3,037
2,945
3,007
2,948
2,957

1974— J a n .. . .
F e b ....
M a r ...

73,440
73,647
73,957

4,161
4,584
4,825

2,925
2,846
2,851

State
and
local
govt.

C orpo­
rate
and
o th e r1

197 12,876
385 17,674
873 21,906

Cash

O ther
assets

Depos­
its

Mortgage loan
commitments
classified by maturity
(in months)

Other General
liabili­ reserve
ac­
ties
counts
3 or
less

3-6

6-9

1,270
1,389
1,644

1,471
1,711
2,117

78,995
89,369
100,593

71,580
81,440
91,613

1,690
1,810
2,024

5,726
6,118
6,956

619
1,047
1,593

322
627
713

22,509
22,598
22,615
22,562
22,683
22,277
21,799
21,276
21,150
21,383

1,576
1,582
1,629
1,775
1,555
1,551
1,491
1,501
1,519
1,968

2,058
2,089
2,116
2,273
2,202
2,227
2,345
2,285
2,264
2,314

103,518
103,994
104,899
105,677
105,761
105,789
105,771
105,557
105,991
106.651

94,095
94,217
94,744
95,706
95,355
94,882
95,183
94,944
95,259
96,496

2,285
2,589
2,904
2,650
3,044
3,496
3,134
3,139
3,201
2,566

7,139
7,189
7,251
7,321
7,362
7,411
7,453
7,474
7,530
7,589

1,816
1,904
1,792
1,711
1,626
1,302
1,411
1,318
1,272
1,250

886
888
913
1,020
906
840
762
771
685
598

826
725
712
573
636
718
589
510
479
405

936 21,623
942 21,923
934 22,302

1,686
1,618
1,634

2,312
2,316
2,373

107,083
107,877
108,876

96,792
97,276
98,557

2,665
2,919
2,595

7,626
7,681
7,724

1,171
1,232
1,302

587
562
525

439
407
413

1,028
1,080
1,076
1,125
1,093
999
957
939
925
926

1 Also includes securities o f foreign governments and international
organizations and nonguaranteed issues o f U.S. Govt, agencies.
2 Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. o f the State of New York. D ata include building
loans beginning with Aug. 1967.
3 Balance sheet data beginning 1972 are reported on a gross-of-valuation-reserves basis. The data differ somewhat from balance sheet data
previously reported by National Assn. o f M utual Savings Banks which




Total
assets—
Total
liabili­
ties
and
general
reserve
accts.

Over
9

Total

302
688 1,931
463 1,310 3,447
609 1,624 4,539
1,355
1,395
1,406
1,378
1,367
1,315
1,197
1,096
1,079
1,008

4,882
4,912
4,824
4,683
4,535
4,174
3,959
3,695
3,515
3,261

998 3,196
952 3,153
929 3,168

were net of valuation reserves. For most items, however, the differences
are relatively small.
N ote .— N A M S B data; figures are estimates for all savings banks in
the United States and differ somewhat from those shown elsewhere in
the B u l l e t in ; the latter are for call dates and are based on reports filed
with U.S. Govt, and State bank supervisory agencies.

JU N E 1974 □ SAVINGS IN S TITU TIO N S

A 33

LIFE INSURANCE COMPANIES
(In millions of dollars)

End o f period

G overnm ent securities

Business securities

United State and
States
local

Bonds

Stocks

Total
assets
Total

M ort­
gages

Real
estate

Policy
loans

O ther
assets

.

207,254
222,102
239,730

11,068
11,000
11,372

4,574
4,455
4,562

3,306
3,363
3,367

3,188 88,518
3,182 99,805
3,443 112,985

73,098
79,198
86,140

15,420
20,607
26,845

74,375
75,496
76,948

6,320
6,904
7,295

16.064
17.065
18,003

10,909
11,832
13,127

1973—Mar.
A p r.,
M ay.
June
July.
Aug.,
Sept.
O ct..
Nov.
Dec.

242,476
242,562
243.589
244.531
247,082
247,655
250,203
251.590
251,055
252,071

11.404
11,455
11,434
11,359
11,427
11,416
11.404
11,402
11,462
11,376

4,588
4,566
4,538
4,468
4,480
4,462
4,424
4,423
4,471
4,586

3,332
3,388
3,384
3,373
3,427
3,433
3,439
3,438
3,444
3,449

3,484
3,501
3,512
3,518
3.520
3.521
3.541
3.541
3,547
3,545

115,558
115,181
115,897
116,153
118,061
117,842
119,200
119.714
118,016
117,733

89,537
89,710
90,314
90,484
91,144
91,342
91,480
91,707
91,847
91,452

26,021
25,471
25,583
25,669
26,917
26,500
27,720
28,007
26,169
26,281

77,166
77,258
77,400
77,914
78,243
78,657
79,040
79,516
80,191
81,180

7,455
7,522
7,545
7,548
7,577
7,632
7,677
7,765
7,838
7,769

18,284
18,420
18,533
18,673
18,841
19,181
19,511
19,768
19,926
20,076

12,609
12,726
12,780
12,884
12,933
12,927
13,371
13,425
13,622
13,937

1974—Jan..
Feb..
Mar.

253.531
254i739
255,847

11,465
11,535
11,766

4,410
4,429
4,595

3,463
3,518
3,511

3,592 119,079
3,588 119.715
3,660 119.936

93,082
93,672
94,037

25,997
26,043
25,899

81,490
81,745
81,971

7,816
7,825
7,831

20,242
20,382
20,538

13,439
13,537
13,805

197 0
197 1
197 2

1 Issues o f foreign governments and their subdivisions and bonds o f
Figures are annual statement asset values, with bonds carried on an
the International Bank for Reconstruction and Development.
amortized basis and stocks at year-end m arket value. Adjustments for
interest due and accrued and for differences between m arket and book
N ote . —Institute o f Life Insurance estimates for all life insurance
values are not made on each item separately but are included, in total in
companies in the United States.
“Other assets.”

SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)

Liabilities

Assets
End o f period
M ort­
gages

Invest­
ment
secur­
ities 1

Cash

3,506
13,020
18,185
2,857
21,574
2,781
21,027

Other

Total
assets—
Total
liabilities

9,326
10,731
12,590
19,227

M ortgage
loan com ­
mitments
outstanding
at end of
period4

Savings
capital

Net
w orth 2

Bor­
rowed
money 3

Loans
in
process

176,183
206,023
243,127
272,358

146,404
174,197
206,764
227,254

12,401
13,592
15,240
17,108

10,911
8,992
9,782
17,100

3,078
5,029
6,209
4,676

3,389
4,213
5,132
6,220

4,452
7,328
11,515
9,532

O ther

1970.....................................
1971.....................................
1972.....................................
19733...................................

150,331
174,250
206,182
232,104

1973—A pr..........................
M ay.........................
Ju n e.........................
Ju ly .........................
Aug..........................
Sept..........................
Oct...........................
N ov..........................
Dec..........................

216,037
219,283
222,580
225,265
227,778
229,182
230,195
231,089
232,104

23,803
23,930
23,220
22,628
21,001
20,025
20,618
21,220
21,027

17,489
17,873
17,920
18,296
18,704
19,008
19,295
19,449
19,227

257,329
261,086
263,720
266,189
267,483
268,215
270,108
271,758
272,358

216,474
218,351
221,624
221,399
220,243
222,086
223,033
224,304
227,254

16,044
16,415
16,225
16,550
16,896
16,782
17,041
17,330
17,108

11,269
11,689
12,698
14,226
15,634
16,255
16,435
16,312
17,100

6,532
6,711
6,754
6,686
6,449
6,064
5,535
5,011
4,676

7,010
7,920
6,419
7,328
8,261
7,028
8,064
8,801
6,220

14,939
15,068
14,705
13,710
12,249
10,799
9,909
9,717
9,532

1974—Jan ...........................
Feb..........................
M ar.........................
A p r.* ......................

232,980
234,426
236,514
239,012

22,378
23,327
23,970
23,559

19,502
19,901
20,429
20,908

274,860
277,654
280,913
283,479

229,435
231,264
235,436
235,232

17.333
17,623
17,488
17,764

16,663
16,431
16,652
18,128

4,380
4,304
4,492
4,786

7,049
8,032
6,845
7,569

9,788
10,740
12,018
13,022

1 Excludes stock o f the Federal Home Loan Bank Board. Compensating
changes have been made in “ O ther assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Advances from FHLBB and other borrowing.
4 D ata com parable with those shown for m utual savings banks (on
preceding page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
Home Loan M ortgage C orporation, loans and notes insured by the
Farmers H om e Administration and certain other Government-insured
morgtage-type investments, previously included in mortgage loans, are




included in other assets. The effect of this change was to reduce the m ort­
gage total by about $0.6 billion.
Also, GNM A-guaranteed, mortgage-backed securities o f the pass­
through type, previously included in cash and investment securities are
included in other assets. These am ounted to about $2.4 billion at the end
of 1972.
N ote . —FHLBB data; figures are estimates for all savings and loan
assns. in the United States. D ata are based on monthly reports of insured
assns. and annual reports o f noninsured assns. D ata for current and
preceding year are preliminary even when revised.

FEDERAL FINANCE a JU N E 1974

A 34

FEDERAL FISCAL OPERATIONS: SUMMARY

(In millions of dollars)
U.S. budget

Means o f financing
Borrowings from the public 1

Period
Receipts Outlays

Surplus
or
deficit
(“ )

Less: Invest­
Public
ments by Govt,
debt Agency
accounts
Less: Equals:
securi­ securi­
Special T otal
ties
ties
n otes2
Special Other
issues

Fiscal y e ar:
197 0
197 1
197 2
197 3

193,743
188,392
208,649
232,225

H alf year:
1972—Jan.-June
July-D ee.
1973—Jan.-June
July-D ee.

115,549 120,319 - 4 ,8 5 0
106,062 118,579 -1 2 ,5 1 7
126,164 127,940 - 1 ,7 7 6
124,253 130,360 - 6 ,1 0 7

M o n th :
1973—A p r . '. . . .
M ay .........
J u n e .........
July..........
Aug..........
Sept..........
O ct...........
N ov..........
D ec..........

'25,870
16,584
28,504
18,121
21,291
25,007
17,637
20,208
21,987

'22,234
20,157
20,892
'22,607
22,139
20,736
23,092
22,099
19,686

'3 ,6 3 6 -1 ,5 4 3
- 3 ,5 7 3
275
7,612
803
-4 ,4 8 6
862
-8 4 7
2.842
4,271
-4 0 6
- 5 ,4 5 5
1,037
-1 ,8 9 1
1,561
2,302
5,861

1974—Ja
n
Feb...........
M ar..........
A pr..........

23,476
20,226
16,818
29,657

23,671
21,030
22,905
22,273

-1 9 5 -1 ,7 1 4
-8 0 4
2,503
3,813
- 6 ,0 8 6
7,384 - 2 ,5 9 7

196,588 -2 ,8 4 5
211,425 -2 3 ,0 3 3
231,876 -2 3 ,2 2 7
246,526 -1 4 ,3 0 1

Less: Cash and
m onetary assets

T rea­
sury
operat­
ing
balance

Other

Other
means
of
financ­
ing,
n e t3

17,198 - 1 ,7 3 9
9,386
27,211
-3 4 7
6,616
29,131 -1 ,2 6 9
6,813
30,881
216 12,029

676
800
1,607
-2 0 7

5,397
19,448
19,442
19,275

2,151
710
1,362
2,459

-5 8 1
-9 8 2
-9 7 9
3,586
1,108 6,255
- 1 ,6 1 3 - 4 ,1 2 8

3,130
22,038
8,844
11,756

1,089
-823
654
824

- 2 ,1 1 4
17,386
1,889
6,013

- 1 ,1 8 9
956
1,503
- 2 ,2 0 2

2,497
8,377
- 1 ,5 2 0 - 5 ,4 3 4
-8 8
1,302
-1 9 1 - 2 ,2 9 9

-7 2 1
'- 6 3
'- 4 2
-4 3
1,968
234
68 '3,411 ' —171
9 1,258
325
301 3,137
568
40
-7 5 6
-1 7 3
29
-3 0 6
-2 2
273 - 3 ,5 1 0
3,141
-1 7 4
5,574 - 3 ,0 1 6

- 2 ,1 5 9
- 1 ,9 7 0
-2 ,3 6 9
-7 1 3
-5 6 3
564
1,395
2,202
3,128

1,220
- 5 ,9 2 4
4,344
- 5 ,3 9 8
-4 ,1 0 5
5,207
- 2 ,5 8 8
- 1 ,0 1 0
5,693

1,215
'959
-1 ,1 4 1 - 1 ,5 2 2
414
-4 8 5
-5 4 4
-7 4 3
151 - 2 ,5 4 4
346
718
-4 3
1,431
- 4 8 - 1 ,3 6 8
-5 4
209

-7 7 3
-1 6 2
4,309
- 2 ,5 0 2

168
- 2 ,8 7 7
690
3,125

'544
1,681
- 8 4 - 1 ,9 9 5
191 2,657
1,319
-4 3 8

-1 5 0
876
-6 6 0
477

12
-1 7
394
37

4,010
6,351
5,790
5,396

-9 8 4
2,478
-1 6 4
-1 1 5

55
169
61
57

Selected balances
Treasury operating balance
End
of
period
F.R .
Banks

Tax
and
loan
accounts

Other
deposi­
taries4

Borrowing from the public.

Total

Public
debt
securities

Agency
securities

Less:
Investments of
Govt, accounts
Special
issues

O ther

Less:
Special
notes 2

Equals:
Total

M emo:
D ebt of
Govt.sponsored
corps.—
N ow
private5

Fiscal year:
1970...........................
1971...........................
1972...........................
1973...........................

1,005
1,274
2,344
4,038

6,929
7,372
7,934
8,433

111
109
139
106

8,045
8,755
10,117
12,576

370,919
398,130
427,260
458,142

12,510
12,163
10,894
11,109

76,124
82,740
89,539
101,738

21,599
22,400
24,023
24,093

825
825
825
825

284,880
304,328
323,770
343,045

35,789
36,886
41.044
51,325

Calendar year:
1972...........................
1973...........................

1,856
2,543

8,907
7,760

310
70

11,073
10,374

449,298
469,898

11,770
11,586

95,924
107,135

23,164
24,467

825
825

341,155
349,058

43,459
59,857

M onth:
1973—A pr................
M ay..............
June..............
Ju ly ...............
A ug...............
Sept...............
Oct................
N ov...............
D ec................

4,162
3,242
4,038
2,867
847
1,626
1,839
1,945
2,543

9,683
4,679
8,433
4,203
2,217
6,582
3,781
2,666
7,760

311
311
106
108
8
71
71
70
70

14,156
8,232
12,576
7,178
3,072
8,279
5,691
4,681
10,374

457,063
457,338
458,142
459,003
461,845
461,439
462,476
464,037
469,898

11,084
11,041
11,109
11,118
11,419
11,459
11,488
11,760
11,586

'96,360
98,324
101,738
102,996
106,133
105,378
105,071
101,561
107,135

'23,579
23,817
24,093
23,968
24,536
24,362
'24,241
27,482
24,467

825
825
825
825
825
825
'825
825
825

347,383
345,414
343,045
342,332
341,769
342,333
343,727
345,930
349,058

47,905
49,731
51,325
52,780
54,409
56,691
59,330
59,317
59,857

1974— Jan ................
Feb................
M ar...............
A pr................

2,844
2,017
1,372
2,814

7,628
5,579
6,915
8,576

69
69
69
89

10,542
7,665
8,356
11,480

468,184
470,687
474,500
471,903

11,598
11,581
11,975
12,012

106,151
108,629
108,465
108,350

24,521
24,691
24,752
24,809

825
825
825
825

348,285
348,123
352,433
349,931.

59,566
59,282
59,897

1 The decrease in Federal securities resulting from conversion to private
ownership o f Govt.-sponsored corporations (totaling $9,853 million) is
not included here. In the bottom panel, however, these conversions de­
crease the outstanding amounts o f Federal securities held by the public
mainly by reductions in agency securities. The Federal N ational Mortgage
Association (FNM A ) was converted to private owership in Sept. 1968 and
the Federal intermediate credit banks (FICB) and banks for coopera­
tives in Dec. 1968.
2 Represents non-interest-bearing public debt securities issued to the
International M onetary Fund and international lending organizations.
New obligations to these agencies are handled by letters o f credit.




3 Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
4 As o f Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded “ O ther deposi­
taries” (deposits in certain commercial depositaries that have been con­
verted from a time to a demand basis to permit greater flexibility in
Treasury cash management).
5 Includes debt of Federal home loan banks, Federal land banks, R .F.K .
Stadium Fund, FN M A (beginning Sept. 1968), and FICB and banks
for cooperatives (both beginning Dec. 1968).

Note.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

JU N E 1974 □ FEDERAL FINANCE

A 35

FEDERAL FISCAL OPERATIONS: DETAIL
(In millions o f dollars)
Budget receipts
Corporation
income taxes

Individual income taxes

Em ployment
taxes and
contributions2
Un- Other Net
Gross Re­
re­
empl. net
funds
re­
total
ceipts
Pay­ Self- insur. ceipts 3
roll empl.
taxes

Period
Total

Fiscal year:

197
197
197
197

0
1
2
3

H alf year:
1972—J a n .-J u n e ...
Ju ly -D ee.. . .
1973—J a n .-J u n e ...
Ju ly -D ee.. . .

Pres.
Elec­
on­
W ith­ tion N
with­ Re­
held C am ­ held funds
paign
Fund1

90,412
86,230
94,737
103,246

35,037
30,320
34,926
39,045

77,416
76,490
83,200
98,093

26,236
24,262
25,679
27,019

3,465
3,673
4,357
6,051

2,700
3,206
3,437
3,614

45,298
48,578
53,914
64,542

115,469
106,062
126,165
124,253

44,751
46,056
52,034
52,961

20,090 13,569 51,272 21,664 1,312 24,445 1,877 4,736
688 51,152 15,315 1,459 22,493
165 2,437
5.784
21;235 21,179 52,091 23,730 1,434 30,013 2,206 3,616
999 58,170 16,589 1,494 29,965
6,207
201 2,974

1,764
1,773
1,841
1,967

30,925
26,867
37,675
35,109

'303
308
293
346
333
317
351
321
299

1973—A pr................ '25,870 r8 ,646
16,584
28,537
18,121
21,291
25,007
17,637
20,209
21,987

20,226 9,505
16,818 9,662
29,657 9,946

2,208
3,535
2,760
2,893

37,190
39,751
44,088
52,505

1,942
1,948
2,032
2,371

9,124 6,185 11,584 5,915
1,444 6,433 3,825 1,219
597 12,306 8,983
3,735
354 8,814 1,552
681
904
257 9.279
451
135 11,707 5,477
3,903
550
71 9,230 1,515
939
66 10,006
261
362
115 9,134 6,201

258
296
188
202
209
230
462
287
105

4,297 1,316
'445
253 2,156
6,662
4,548
145
95
4,608
382
7,087
1,357
4,812
177
103
24
4,119
217
5,578
825
3,760
89

5,076
45 14,327 1,722
945 1,851 8,601 1,066
2,186 8,631 3,219 5,887
11,118 6,313 14,764 5,893

160
248
338
430

4,439
170
214
7,080
5,059
228
4,390 1,603

8,813
9,168
8,487
9,085
7,940
8,752
9,811
8,887

1974—Jan ..................... 23,476 9,296
Feb....................
M ar....................
A pr....................

Net
total

193,743
188,392
208,649
232,225

M onth:

M ay...............
June...............
July................
A u g ...............
Sept...............
O ct.................
N ov...............
D ec................

13,240
14,522
14,143
21,866

Social insurance taxes
and contributions

244
761
96
552

Excise Cus­
taxes toms

Estate Misc.
and
re­
gift ceipts4

15,705
16,614
15,477
16,260

3,644
3,735
5,436
4,917

2,430
2,591
3,287
3,188

6,516 1,449 3,041 1,915
8,244 1,551 2,333 2,059
8,016 1,637 2,584 1,865
8,966 1,633 2,514 2,768

'6,361 1,318
9,380 1,446
5,081 1,386
5,336 1,538
8,778 1,434
5,409 1,436
4,712 1,459
6,724 1,563
4,149 1,536

378
346
338
351

5,232
8,400
5,721
6,896

3,424
3,858
3,633
3,921

1,263
1,315
1,211
1,275

262
280
273
276
303
238
291
301
224

330
466
335
398
494
373
454
462
333

'358
264
360
409
308
597
437
501
515

304
239
277
286

455
423
465
371

334
429
377
602

Budget outlays

N at­
ural

Com ­
merce
and
transp.

Total

N a­
tional
de­
fense

Fiscal year:
197 2
197 3
19746...................
19756...................

231,876
246,526
274,660
304,445

78,336
76,027
80,573
87,729

3,786
3,182
3,886
4,103

3,422
3,311
3,177
3,272

7,061
6,051
4,039
2,729

3,759
556
609
3,128

11,197
12.520
13.521
13,400

H alf year:
1972—Jan.-June.
July-Dee..
1973—Jan.-June.
July-Dee.,

120,319
118,578
127,940
130,360

42,583
35,229
40,677
37,331

2,034
1,639
1,542
1,617

1,645
1,676
1,635
1,501

1,062
4,616
1,435
3,472

1,807
330
227
763

22,234 '6 ,332
20,157 6,401
20,814 8,015
22,607 4,878
22,139
6,772
20,736 6,095
23,092 6,607
22,099 6,900
19,686 6,079

237
136
486
308
327
205
282
276
219

265
255
301
278
262
246
248
246
221

368
-155
-1 2 6
2,011
440
-3 5
503
782
-2 2 8

6,793
6,509
6,686
6,751

351
224
345
336

251
231
252
293

Period

M o n th :
1973—A p r. '
M ay .........
Ju n e.........
July..........
A ug..........
Sept..........
Oct...........
Nov.........
D ec..........
1974—Ja............ n
Feb.........
M ar........
A pr.........

23,671
21,030
22,904
22,273

Intl.
affairs

Space
re­
search

Agri­
cul­
ture

Educa­
Health
tion
and
and
m an­
wel­
power
fare

Vet­
erans

Inter­
est

G en­
eral
govt.

G en­
eral
reve­
nue
shar­
ing

Intragovt.
trans­
ac­
tions 5

4,216 10,198 81,536 10,747 20,584
4,162 10,821 91,230 12,004 22,785
5,450 10,819 108,263 13,285 27,754
5,667 11,537 126,353 13,612 29,122

4,889
5,619
6,800
6,774

-7,858
76,636 -8,378
6,147 -9,963
6,174 -10,717

5,167
6,199
6,320
7,387

2,035
2,637
1,525
3,215

10,534
10,619
12,181
13,440

2,497
2,869
2,749
3,0

-4,036
2,617 -4,039
4,019 -4,339
3,032 -4,753

'325
298
118
942
573
422
416
424
-1 3 0

'792
907
1,434
2,104
1,090
957
1,260
912
1,064

243
-148
309
911
779
712
561
36
316

1,114 '2,122
1,017 2,165
866 2,004
1,099 2,184
1,054 2,159
970 2,392
1,058 2,135
1.194 2,401
1,143 2,169

'396
466
452
563
466
643
479
438
498

'1 ,4 9 4
3

-5 4 4
756
58
138
759
205
89 -1,618

886
363
746
740

331
198
263
373

636
520
499
586

1,532
'1

1 Collections o f these receipts, totaling $2,427 million for fiscal year
1973, were included as part o f nonwithheld income taxes prior to Feb.
1974.
2 Old-age, disability, and hospital insurance, and R ailroad Retirement
accounts.
3 Supplementary medical insurance premiums and Federal employee
retirement contributions.
4 D eposits o f earnings by Federal Reserve Banks and other miscellane­
ous receipts.
5 Consists o f Government contributions for employee retirement and
o f interest received by trust funds.




Com.
mun.
deve­
lop.
and
hous­
ing

5,843
5,133
5,688
4,772

43,405
43,212
48,018
48,978

788 '8,083
1,066 8,124
1,336 8,234
777 7,792
954 7,935
661 8,302
955 8,040
805 8,373
619 8,534
983
932
1,036
925

9,067
8,979
9,310
9,505

5,744
5.740
6,264
6,518

1,204
l.<
1.194
1,165

2,353
2,466
2,508
2,455

1,495
-3
16
1,494
29

1,540

-3 2 4
-3 7 7
-2,616
-8 5 0
-6 7 0
-8 4 9
-8 5 0
-7 1 7
-8 1 6
-929
-6 7 7
-8 9 8
-8 6 7

6 Estimates presented in the Jan. 1975 Budget Document. Breakdowns do
not add to totals because special allowances for contingencies, Federal
pay increase (excluding D epartm ent o f Defense), and acceleration o f energy
research and development, totaling $300 million for fiscal 1974, and $1,561
million for fiscal 1975, are not included.
7 Contains retroactive payments o f $2,617 million for fiscal 1972.
N ote.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

A 36

U.S. GOVERNM ENT SECURITIES □ JU N E 1974
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions of dollars)
Public issues

End o f period

Total
gross
public
debt i

M arketable
Total
Total

Certifi­
cates

Bills

Notes

C on­
vert­
ible
B onds 2 bonds

N onm arketable

Special
issues 5

Foreign
Total 3

«— 4lbS&

& notes

1967— D ec..
1968—D e c ..
1969—D ec..

344.7
358.0
368.2

284.0
296.0
295.2

226.5
236.8
235.9

69.9
75.0
80.6

61.4
76.5
85.4

95.2
85.3
69.9

2 .6
2.5
2 .4

54.9
56.7
56.9

3.1
4 .3
3.8

51.7
52.3
52.2

57.2
59.1
71.0

1970—D ec..
1971—Dec..
1972—D ec..

389.2
424.1
449.3

309.1
336.7
351.4

247.7
262.0
269.5

87.9
97.5
103.9

101.2
114.0
121.5

58.6
50.6
44.1

2 .4
2 .3
2 .3

59.1
72.3
79.5

5.7
16.8
2 0.6

52.5
54.9
58.1

78.1
85.7
95.9

1973— M ay.
June.
July.
Aug.
Sept.
O c t..
N ov.
Dec.

457.3
458.1
459.0
461.8
461.4
462.5
464.0
469.9

357.1
354.6
354.2
353.8
354.1
355.5
360.5
360.7

265.9
263.0
262.7
262.4
262.4
264.0
270.2
270.2

103.0
100.1
99.9
101.8
99.8
101.6
107.7
107.8

117.8
117.8
117.8
118.7
120.7
120.7
124.6
124.6

45.1
45.1
4 5 .0
42.0
41.9
41.8
37.8
37.8

2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3

88.9
89.4
89.2
89.1
89.5
89.2
88.0
88.2

28.3
28.5
28.2
27.9
28.2
27.8
26.1
26.0

59.7
59.9
60.2
60.3
60.3
60.5
60.8
60.8

98.3
101.7
103.0
106.1
105.4
105.1
101.6
107.1

1974—Jan..
Feb.
M ar.
Apr.
M ay

468.2
470.7
474.5
471.9
474.7

360.1
360.0
364.2
361.7
361.5

270.1
269.7
273.6
270.5
269.6

107.8
107.9
111.9
107.3
107.9

124.6
126.1
126.1
127.6
128.4

37.7
35.7
35.6
35.5
33.2

2.3
2 .3
2.3
2.3
2.3

87.7
88.1
88.3
89.0
89.6

25.3
25.4
25.2
25.7
26 .0

61.0
61.3
61.6
61.9
62.1

106.2
108.6
108.5
108.4
111.3

1 Includes non-interest-bearing debt (of which $618 million on M ay 31,
1974, was n o t subject to statutory debt limitation).
2 Includes Treasury bonds and m inor am ounts o f Panam a Canal and
postal savings bonds.
3 Includes (not shown separately): depositary bonds, retirem ent plan
bonds, and R ural Electrification Administration bonds.

4 Nonm arketable certificates o f indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency-series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
N o te .—Based on Daily Statement o f U.S. Treasury. See also second
paragraph in N ote to table below.

OWNERSHIP OF PUBLIC DEBT
(Par value, in billions o f dollars)
Held by private investors

Held by—
Total
gross
public
debt

U.S.
G ovt.
agencies
and
trust
funds

F.R.
Banks

Total

1967—D ec.................
1968—D ec.................
1969—D ec.................

344.7
358.0
368.2

73.1
76.6
8 9.0

49.1
52.9
57.2

1970—D ec..................
1971—D ec..................
1972—D ec.................

389.2
424.1
449.3

97.1
106.0
116.9

1973—M ay................
Ju n e ................
July.................
A ug.................
Sept.................
O ct..................
D ec.................

457.3
458.1
459.0
461.8
461.4
462.5
464.0
469.9

1974— Jan ..................
Feb..................
M ar.................
A pr.................

468.2
470.7
474.5
471.9

End o f
period

Foreign O ther
and
misc.
inter­
inves­
national 1 tors 2

M utual
savings
banks

Insur­
ance
com­
panies

Other
corpo­
rations

State
and
local
govts.

222.4
228.5
222.0

63.8
66.0
56.8

4 .2
3.8
3.1

9 .0
8 .4
7.6

12.2
14.2
10.4

24.1
24.9
27.2

51.2
51.9
51.8

22.3
23.3
29.0

15.8
14.3
11.2

19.9
21.9
25 .0

62.1
70.2
69.9

229.9
247.9
262.5

62.7
65.3
67.7

3.1
3.1
3.4

7 .4
7.0
6.6

7.3
11.4
9.8

27.8
25.4
28.9

52.1
54.4
57.7

29.1
18.8
16.2

20.6
46.9
55.3

19.9
15.6
17.0

120.1
123.4
125.0
128.7
127.8
127.4
127.1
129.6

74.1
75.0
77.1
76.1
76.2
78.5
77.1
78.5

263.1
259.7
256.9
257.1
257.4
256.5
259.8
261.7

58.9
58.8
56.5
55.1
55.4
56.3
58.5
60.3

3.3
3.3
3.1
2.9
2.9
2.9
2.9
2.9

6.3
6.3
6 .4
6.3
6.3
6.3
6.2
6.4

10.8
9.8
10.3
11.5
9 .2
10.2
11.1
10.9

28.6
28.8
28.4
27.7
29.0
28.5
28.9
29.2

59.2
59.5
59.7
59.8
59.8
60.0
60.3
60.3

16.5
16.4
17.0
17.2
17.3
17.0
16.9
16.9

61.1
60.2
59.7
59.2
58.5
57.5
56.2
55.6

18.4
16.6
15.8
17.3
18.9
17.9
18.9
19.3

128.7
131.3
131.2
131.1

78.2
78.2
79.5
80.0

261.2
261.1
263.8
260.7

60.2
58.2
59.5
56.8

2.8
2.8
2.8
2.7

6.3
6 .0
6.1
5.9

10.7
10.9
11.7
10.5

29.9
30.7
30.4
30.1

60.5
60.8
61.1
61.4

16.9
17.0
17.3
17.8

52.8
53.6
54.9
55.9

21.1
21.2
20.0
19.7

1 C onsists of investm ents of foreign and international accounts in
the U nited States.
a Consists o f savings and loan assns., nonprofit institutions, cor­
porate pension tru st funds, and dealers and brokers. A lso included
are certain G ovt, deposit accounts and G ovt.-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 ow nership concepts were altered beginning w ith the
M ar. 1969 B u l l e t i n . The new concepts (1 ) exclude guaranteed se­
curities and (2 ) rem ove from U .S. G ovt, agencies and tru st funds
and add to other m iscellaneous investors the holdings o f certain
G ovt.-sponsored but privately owned agencies and certain Govt, deposit
accounts.

JUNE 1974 a U.S. GOVERNMENT SECURITIES

A 37

OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
W ithin 1 year
Type o f holder and date

All holders:
1971—Dec.
1972 Dec.
1973—Dec.
1974— M ar.
A pr.

Total
Total

Bills

Other

1-5
years

5-10
years

10-20
years

Over
20 years

3 1 .............................................................
3 1 .............................................................
3 1 .............................................................
3 1 .............................................................
3 0 .............................................................

262,038
269,509
270,224
273,596
270,452

119,141
130,422
141,571
145,453
140,905

97,505
103,870
107,786
111,859
107,337

21,636
26,552
33,785
33,594
33,568

93,648
88,564
81,715
79,045
80,570

29,321
29,143
25,134
26,965
26,961

9,530
15,301
15,659
16,092
16,036

10,397
6,079
6,145
6,040
5,981

U.S. Govt, agencies and trust funds:
1971—Dec. 3 1 .....................................................
1972—Dec. 3 1 ....................................................
1973 Dec. 31....................................................
1974— M ar. 3 1 .....................................................
Apr. 3 0 .....................................................

18,444
19,360
20,962
21,272
21,296

1,380
1,609
2,220
2,416
2,466

605
674
631
744
647

775
935
1,589
1,672
1,819

7,614
6,418
7,714
7,379
7,452

4,676
5,487
4,389
4,573
4,524

2,319
4,317
5,019
5,284
5,235

2,456
1,530
1,620
1,620
1,620

Federal Reserve Banks:
1971—Dec. 3 1 .....................................................
1972 Dec. 31.....................................................
1973—Dec. 3 1 .....................................................
1974— M ar. 31.....................................................
Apr. 3 0 .....................................................

70,218
69,906
78,516
79,483
80,007

36,032
37,750
46,189
47,032
47,356

31,033
29,745
36,928
38,938
37,276

4,999
8,005
9,261
10,094
10,080

25,299
24,497
23,062
22,618
22,793

7,702
6,109
7,504
7,987
7,982

584
1,414
1,577
1,648
1,687

601
136
184
198
189

173,376
180,243
170,746
172,841
169,149

81,729
91,063
93,162
96,005
91,083

65,867
73,451
70,227
74,177
69,414

15,862
17,612
22,935
21,828
21,669

60,735
57,649
50,939
49,048
50,325

16,943
17,547
13,241
14,405
14,455

6,627
9,570
9,063
9,160
9,114

7,340
4,413
4,341
4,222
4,172

Commercial banks:
1971—Dec. 3 1 ............................................
1972 Dec. 3 1 ............................................
1973—Dec. 3 1 ............................................
1974— Mar. 3 1 ............................................
Apr. 3 0 ............................................

51,363
52,440
45,737
45,524
43,025

14,920
18,077
17,499
16,726
13,508

8,287
10,289
7,901
7,763
4,717

6,633
7,788
9,598
8,963
8,791

28,823
27,765
22,878
22,381
23,081

6,847
5,654
4,022
5,106
5,168

555
864
1,065
1,023
1,013

217
80
272
290
254

M utual savings banks:
1971—Dec. 3 1 ............................................
1972 Dec. 31 ............................................
1973—Dec. 3 1 ............................................
1974— Mar. 3 1 ............................................
A pr. 3 0 ............................................

2,742
2,609
1,955
1,855
1,820

416
590
562
509
448

235
309
222
240
200

181
281
340
269
248

1,221
1,152
750
710
750

499
469
211
230
229

281
274
300
254
277

326
124
131
151
116

Insurance companies:
1971—Dec. 3 1 .............................................
1972—Dec. 31............................................
1973—Dec. 3 1 ............................................
1974— M ar. 3 1 ............................................
Apr. 3 0 ............................................

5,679
5,220
4,956
4,959
4,786

720
799
779
815
631

325
448
312
413
239

395
351
467
402
392

1,499
1,190
1,073
1,066
1,087

993
976
1,278
1,297
1,296

1,366
1,593
1,301
1,278
1,286

1,102
661
523
501
486

Nonfinancial corporations:
1971—Dec. 3 1 .............................................
1972 Dec. 3 1............................................
1973—Dec. 3 1 ............................................
1974— Mar. 3 1 ............................................
A pr. 3 0 ............................................

6,021
4,948
4,905
5,513
4,480

4,191
3,604
3,295
3,561
2,778

3,280
1,198
1,695
2,129
1,363

911
2,406
1,600
1,432
1,415

1,492
1,198
1,281
1,528
1,346

301
121
260
356
290

16
25
54
53
54

20
1
15
14
12

Savings and loan
1971—Dec.
1972—Dec.
1973—Dec.
1974— Mar.
Apr.

associations:
3 1............................................
31............................................
3 1 . . . . ....................................
3 1 ............................................
3 0 ............................................

3,002
2,873
2,103
2,184
2,105

629
820
576
603
505

343
498
121
194
118

286
322
455
409
387

1,449
1,140
1,011
968
989

587
605
320
372
368

162
226
151
191
194

175
81
45
50
49

State and local governments:
1971—Dec. 3 1 ............................................
1972 Dec. 31............................................
1973—Dec. 3 1 ............................................
1974— M ar. 3 1 ............................................
Apr. 3 0 ............................................

9,823
10,904
9,829
10,723
10,207

4,592
6,159
5,845
7,026
6,381

3,832
5,203
4,483
5,677
4,924

760
956
1,362
1,349
1,457

2,268
2,033
1,870
1,724
1,833

783
816
778
737
720

918
1,298
1,003
913
949

1,263
598
332
323
324

94,746
101,249
101,261
102,083
102,726

56,261
61,014
64,606
66,765
66,832

49,565
55,506
55,493
57,761
57,853

6,696
5,508
9,113
9,004
8,979

23,983
23,171
22,076
20,671
21,239

6,933
8,906
6,372
6,307
6,384

3,329
5,290
5,189
5,448
5,341

4,237
2,868
3,023
2,893
2,931

Held by private investors:
1971—Dec. 3 ! .....................................................
1972 Dec. 31.....................................................
1973—Dec. 3 1 .....................................................
1974— M ar. 3 1 .....................................................

All others:
1971—Dec.
1972—Dec.
1973—Dec.
1974_M ar.
Apr.

3 1 ............................................
31............................................
3 1 ............................................
3 1 ............................................
3 0 ............................................

N ote . —D irect public issues only. Based on Treasury Survey of
Ownership.
D ata complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings o f those institutions
that report. The following figures show, for each category, the number
and proportion reporting: (1) 5,594 commercial banks, 479 mutual savings




banks, and 735 insurance companies combined, each about 90 per cent;
(2) 467 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 505 State and local govts., about 40 per cent.
“ All others,'* a residual, includes holdings o f all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A 38

U.S. GOVERNM ENT SECURITIES o JU N E 1974
DAILY-AVERAGE DEALER TRANSACTIONS
(Par value, in millions o f dollars)
U.S. Government securities
By m aturity

By type o f custom er

Period
Total

W ithin
1 year

1-5
years

5-10
years

U.S. Govt, U.S. Govt,
securities securities
dealers
brokers

Over
10 years

Com ­
mercial
banks

All
o th e r1

U.S. Govt.
agency
securities

July.................................
Aug.................................
Sept.................................
Oct...................................
N ov.................................
Dec..................................

3,185
3,187
2,969
2,993
3,366
3,884
3,384
4,022
3,889

2,535
2,390
2,335
2,330
2,403
3,021
2,798
3,001
3,167

440
322
289
367
706
644
374
485
348

165
323
228
226
172
158
163
447
317

46
153
118
72
85
61
48
89
58

709
661
593
581
566
583
568
655
675

636
543
622
632
874
1,182
954
1,188
1,051

1,075
1,057
975
982
1,044
1,142
1,073
1,173
1,123

766
927
778
798
881
977
789
1,007
1,040

714
687
732
700
771
1,048
810
810
869

1974— Jan...................................
Feb..................................
M ar.................................
A pr..................................

3,659
4,229
3,697
3,338

3,074
3,192
2,814
2,682

325
402
450
438

215
561
369
173

45
74
64
45

706
795
744
614

889
1,058
892
836

1,103
1,299
1,071
951

962
1,077
991
937

695
1,019
733
709

1973

A pr.................................
M ay ................................

Week ending—
1974—Apr.

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

3,929
3,609
3,839
3,067

2,921
2,762
3,145
2,644

736
590
415
240

228
195
248
135

44
61
32
48

723
638
774
557

972
1,058
1,056
588

1,069
1,000
1,126
938

1,165
913
882
983

512
870
742
772

May

1.........................
8 .........................
15.........................
22.........................
29.........................

2,917
3,287
4,242
3,163
3,223

2,446
2,560
2,566
2,501
2,542

326
517
1,384
494
505

103
163
163
109
110

42
48
130
60
66

589
593
737
715
681

623
795
1,196
729
842

744
932
1,174
920
887

962
967
1,136
799
814

612
424
1,147
918
793

N ote .—The transactions data combine m arket purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank o f New York.

They do not include allotments of, and exchanges for, new U.S. G ovt,
securities, redemptions o f called or m atured securities, or purchases or
sales o f securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages o f daily figures based on the number of
trading days in the period.

DAILY-AVERAGE DEALER POSITIONS

DAILY-AVERAGE DEALER FINANCING

(Par value, in millions o f dollars)

(In millions o f dollars)

i Since Jan. 1972 has included transactions o f dealers and brokers in
securities other than U.S. Govt.

U.S. G overnm ent securities, by maturity
Period

W ithin
All
1
m aturi­
ties
y ear

1-5
years

5-10
years

Over
10
years

U.S.
Govt.
agency
securi­
ties

Commercial banks
All
sources

Period

C orpora­
tions 1

All
other

New
Y ork
City

Else­
where

3,032
2,667
3,769
2,826
2,318
4,244
3,721
4,469
5,468

935
674
1,242
725
829
1,620
1,253
1,809
2,322

513
452
690
544
327
877
918
900
1,147

311
252
431
510
386
441
328
570
671

1,273
1,291
1,406
1,047
777
1,306
1,223
1,190
1,329

4,802
4,837
3,817
2,449

1,747
1,545
1,196
600

1,253
1,501
952
728

658
533
485
287

1,143
1,257
1,185
833

1973—A pr.................. 2,795
M ay................. 2,626
June................. 2,976
Ju ly ................. 1,901
Aug.................. 1,788
Sept................. 3,201
O ct................... 3,073
N ov................. 3,618
D ec.................. 4,441

3,105
2,596
2,818
2,062
1,977
2,958
2,858
3,034
3,697

-1 5 9
-3 2 4
-1 6 5
-2 5 0
-9 4
316
93
95
223

-1 4 3
179
91
-4 3
-1 0 7
-1 1 1
56
350
396

-9
175
232
131
12
38
67
139
124

274
356
744
511
273
799
904
1,185
1,400

1974—Jan ................... 3,653
Feb.................. 4,081
M ar.................. 2,587
A pr.................. 1,536

3,210
2,707
2,149
1,577

51
537
50
-1 2 1

262
647
287
62

130
190
102
17

1,324
1,435
1,045
719

1974— Mar.

6 ...
1 3 . ..
2 0 ...
27. ..

4,640
4,821
3,559
2,733

1,607
1,589
1,187
690

1,154
1,144
904
737

652
662
455
306

1,226
1,426
1,013
999

Apr.

3 . ..
1 0 . ..
17. ..
2 4 . ..

3,211
3,097
3,040
1,466

867
1,106
861
4

841
822
866
551

329
332
271
250

1,174
837
1,041
662

M ay............
June............
July.............
Aug.............
Sept............
N ov ............
1974— Jan..............
Feb..............
M ar.............
Week ending—

Week ending—
1974— M ar.

6 .........
1 3 .........
2 0 .........
2 7 .........

3,591
3,336
2,037
1,703

2,622
2,695
1,670
1,650

Apr.

3 ..........
10
17.........
2 4 .........

2,530
2,335
1,834
439

2,380
2,274
1,952
602

323
133
2
-1 3 8

459
376
284
142

187
133
81
48

1,222
1,229
1,118
783

*
-5 1
-1 6 3
-2 0 3

109
85
38
38

40
27
8
2

752
772
790
661

N ote .—The figures include all securities sold by dealers under repur­
chase contracts regardless o f the maturity date o f 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 am ount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders o f the securities rather than
dealer trading positions.
Average o f daily figures based on num ber o f trading days in the period.




i
All business corporations, except commercial banks and insurance
companies.
N ote .—Averages o f daily figures based on the num ber of calendar days
in the period. Both bank and nonbank dealers are included. See also
N ote to the table on the left.




JU N E 1974 □ FEDERALLY SPONSORED CREDIT AGENC
SIDING ISSUES OF FEDERALLY SPONSORED AGENCIES, APRIL 30, 1974
Cou­
pon
rate

Amount
(millions
o f dollars)

6.35
6.45
7.65

300
700
173
400
800
217
1,000
250
400
500
700
265
300
300
500
400
350
600
300
300
600
300
500
500
200
300
300
300
500
350
300
200
200
197
400

5Ys

95/8
8.00
7.05
6.10
5%
8.20
7.15
8.05
6 .80
7.95
7%
7.15
6.50
7.05
m
8 Va

7.20
7.45
7.80
7.20
6.95
7.15
6%
7.45
7.60
7.75
7.05
7.80
6.6 0
7.30
m

5.30
7.05
6.15
8.60
7.75
7.15

200
400
350
140
150
150

2,370
8.00
4.38
7.40

200
248
250

8.38
3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63

250
53
5
71
35
10
21
81
200

Agency, and date o f issue
and m aturity
Federal National M ortgage
Association—Cont.
D ebentures:
8/5/70 - 6/10/74..........
11/10/71 -6 /1 0 /7 4 .........
9/10/69 - 9/10/74.........
2/10/71 -9 /1 0 /7 4 ...........
5/10/71 - 12/10/74.........
9/10/71 - 12/10/74.........
11/10/70 - 3/10/75___
10/12/71 - 3 /1 0 /7 5 ....
4/12/71 -6 /1 0 /7 5 ...........
10/13/70 - 9 /1 0 /7 5 ....
3/12/73 -9 /1 0 /7 5 ...........
3/10/72 - 1 2 /1 0 /7 5 ....
9/10/73 - 12/10/75........
3/11/71 - 3/10/76...........
6/12/73 - 3/10/76..........
6/10/71 -6 /1 0 /7 6 ..........
2/10/72 - 6/10/76..........
11/10/71 -9 /1 0 /7 6 ........
6 /1 2 /7 2 -9 /1 0 /7 6 ..........
7/12/71 - 12/10/76........
12/11/72- 1 2 /1 0/76....
2/13/62 - 2/10/77.........
9/11/72 - 3/10/77..........
3 /1 1 /7 4 - 3/10/77..........
12/10/70 - 6/10/77. . .,
5/10/71 -6 /1 0 /7 7 ..........
12/10/73 -6 /1 0 /7 7 ........
9/10/71 -9 /1 2 /7 7 ..........
9/10/73 - 9/12/77..........
7/10/73 - 12/12/77____
10/1/73 - 12/12/77........
6/12/73 - 6/12/78..........
3/11/74 -9 /1 1 /7 8 .........
10/12/71 - 12/11/78..,
12/10/73 - 3 /1 2 / 7 9 ....
9/10/73 -6 /1 1 /7 9 .........
6 /1 2 /7 2 -9 /1 0 /7 9 ........
12/10/71 - 12/10/79. .
2/10/72 -3 /1 0 /8 0 ........
2/16/73 - 7/31/80........
2/16/73 - 7/31/80........
10/1/73 -9 /1 0 /8 0 .........
1/16/73 - 10 /3 0 /8 0 ....
12/11/72- 12/10/80...
6 /2 9 /7 2 - 1/29/81........
3/12/73 - 3/10/81........
4 /1 8 /7 3 -4 /1 0 /8 1 ........
3/21/73 - 5/1/81..........
3/21/73 - 5/1/81...........
1/21/71 - 6 /1 0 /8 1 ....
9/10/71 -9 /1 0 /8 1 ........
3 /1 1 /7 4 -1 2 /1 0 /8 1 ....
6 /2 8 /7 2 -5 /1 /8 2 ..........
2/10/71 - 6/10/82.........
9 /1 1 /7 2 -9 /1 0 /8 2 ........
12/10/73 - 12/10/82...
3/11/71 - 6/10/83........
6/12/73 - 6/10/83.........
11/10/71 - 9 /1 2 / 8 3 ....
4/12/71 -6 /1 1 /8 4 ........
12/10/71 - 12/10/84..
3/10/72 - 3/10/92___
6 /1 2 /7 2 -6 /1 0 /9 2 ........
12/11/72 - 12/10/97. . .

C ou­
pon
rate

7.90
5.70
7.85
5.65
6.10
6.45
7.55
6.35
5.25
7.50
6.80
5.70
8.25
5.65
7.13
6.70
5.85
6.13
5.85
7.45
6.25
4%
6.30
7.05
6.38
6.50
7.20
6.88
7.85
7.25
7.55
7.15
7.15
6.75
7.25
7.85
6.40
6.55
6.88
5.19
3.18
7.50
4.46
6.60
6.15
7.05
6.59
4.50
5.77
7.25
7.25
7.30
5 .84
6.65
6.80
7.35
6.75
7.30
6.75
6.25
6.90
7.00
7.05
7.10

Amount
(millions
o f dollars)

400
350
250
300
250
450
300
600
500
350
650
500
300
500
400
250
450
300
500
300
500
198
500
400
250
150
500
300
400
500
500
600
550
300
500
300
300
350
250
1
9
400
5
300
156
350
26
18
2
250
250
250
58
250
200
300
200
300
250
200
250
200
200
200

Agency, and date o f issue
and m aturity

[llion
ollar

Banks for cooperatives
D ebentures:
11/1/73 -5 /1 /7 4 ...............
12/3/73 -6 /3 /7 4 ...............
1 /2 /7 4 -7 /1 /7 4 .................
2 /4 /7 4 -8 /1 /7 4 .................
3 /4 /7 4 -9 /3 /7 4 .................
4 /1 /7 4 - 10/1/74...............
10/1/73 -4 /4 /7 7 ...............

364
617
469
559
349
251
200

Federal intermediate
credit banks
D ebentures:
8/1/73 - 5/1/74..................
9/4/73 - 6/3/74.................
10/1/73 - 7 /1 /7 4 ...............
1/4/71 - 7/1/74 ...............
11/1/73 - 8/1/74...............
12/3/73 -9 /3 /7 4 ...............
1 /2 /7 4 - 10/1/74...............
2 /4 /7 4 - 11/4/74...............
3 /4 /7 4 - 12/2/74...............
5 /1 /7 2 - 1/2/75.................
4 /1 /7 4 - 1/2/75...............
1 /3 /7 2 -7 /1 /7 5 .................
3/1/73 - 1/5/76.................
7/2/73 - 1/3/77.................
1 /2 /7 4 - 1/3/78.................

538
626
699
224
583
528
616
754
785
240
608
302
261
236
406

Federal land banks
B onds:
10/20/71 - 7/22/74...........
4/20/71 - 10/21/74...........
2/20/70 - 1/20/75...........
4/23/73 - 1/20/75.............
4/20/65 - 4/21/75...........
7/20/73 -4 /2 1 /7 5 .............
2 /1 5 /7 2 - 7/21/75.............
4 /2 2 /7 4 -7 /2 1 /7 5 .............
7/20/71 - 10/20/75...........
10/23/73 - 10/20/75........
4/20/72 - 1/20/76.............
2/21/66 - 2/24/76...........
1/22/73 - 4/20/76.............
4 /2 2 /7 4 -4 /2 0 /7 6 .............
7/20/66 - 7/20/76...........
1 /2 1 /7 4 -7 /2 0 /7 6 .............
4/23/73 - 10/20/76...........
4 /2 2 /7 4 -4 /2 0 /7 7 .............
7/20/73 -7 /2 0 /7 7 .............
10/20/71 - 10/20/77. ..
2/20/63 - 2 /2 0 /7 3 -7 8 ....
5/2/66 - 4/20/78.............
7/20/72 - 7/20/78...........
10/23/73 - 10/19/78.........
2/20/67 - 1/22/79.............
1/2 1 /7 4 - 1/22/79.............
9 /1 5 /7 2 -4 /2 3 /7 9 .............
2/20/74 - 7/23/79.............
10/23/72 - 10/23/79........
1/22/73 - 1/21/80.............
7/20/73 - 7/21/80.............
2/23/71 -4 /2 0 /8 1 .............
4 /2 0 /7 2 -4 /2 0 /8 2 .............
4/23/73 - 10/20/82...........
10/23/73 - 10/20/83.........

not guaranteed by the U.S. G o v t.; see also note to table at top o f p. A-40.

326
300
220
300
200
300
425
300
300
362
300
123
373
400
150
360
450
565
550
300
148
150
269
550
285
300
235
389
400
300
250
224
200
239

FEDERALLY SPONSORED CREDIT AGENCIES a JU N E 1974

A 40

MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
Assets
End o f
period

Federal N ational
M ortgage Assn.
(secondary market
operations)

Liabilities and capital
Cash
and
de­
posits

M em­
ber
de­
posits

Ad­
vances
to
mem­
bers

Invest­
ments

1970.
1971.
1972

10,614
7,936
7,979

3,864
2,520
2,225

105
142
129

10,183
7,139
6,971

2,332
1,789
1,548

1973--A p r...
M a y ..
J u n e ..
July. .
A ug. .
Sept. .
O ct.. .
Nov. .
D ec...

9,429
10,155
11,145
12,365
13,511
14,298
14,799
14,866
15,147

2,087
2,702
2,516
2,126
2,016
2,908
3,498
3,649
3,537

111
95
108
103
111
102
106
77
157

8,415
9,615
10,215
11,213
12,562
14,062
15,362
15,362
15,362

1974—J a n .. .
F e b ...
M ar...
A p r...

15,188
14,904
14,995
16,020

2,843
2,680
2,779
1,615

121
116
124
82

14,556
13,906
13,906
13,902

Bonds
and
notes

Banks
for
cooperatives

M ort­
gage
loans
(A)

Deben­
tures
and
notes
(L)

Loans
to
cooper­
atives
(A)

Deben­
tures

1,607
1,618
1,756

15,502
17,791
19,791

15,206
17,701
19,238

1,143
1,261
1,453
1,183
1,091
1,178
1,270
1,545
1,745

1,981
1,991
2,008
2,035
2,064
2,089
2,107
2,112
2,122

20,791
21,087
21,413
21,772
22,319
22,826
23,348
23,912
24,175

1,692
1,936
2,027
2,067

2,246
2,294
2,306
2,337

24,424
24,541
24,888
25,264

Capital
stock

N ote .—D ata from Federal H om e Loan Bank Board, Federal National
M ortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts o f all agencies, except for stock o f FH LB ’s.
Bonds, debentures, and notes are valued at par. They include only publicly

Federal
intermediate
credit banks

Federal
land
banks

D eben­
tures

(L)

Loans
and
dis­
counts
(A)

2,030
2,076
2,298

1,755
1,801
1,944

20,056
20,225
20,364
20,843
21,186
21,537
22,243
22,404
23,001

2,859
2,765
2,725
2,811
2,865
2,738
2,711
2,662
2,577

23,131
23,092
23,515
23,668

3,123
3,211
3,143
2,836

Bonds

(L)

M ort­
gage
loans
(A)

4,974
5,669
6,094

4,799
5,503
5,804

7,186
7,917
9,107

6,395
7,063
8,012

2,465
2,370
2,316
2,365
2,310
2,560
2,728
2,704
2,670

6,555
6,777
6,958
6,981
7,065
7,170
7,130
7,029
7,198

6,314
6,460
6,645
6,745
6,727
6,833
6,901
6,890
6,861

9,767
9,953
10,117
10,256
10,441
10,592
10,781
10,926
11,071

8,836
8,836
8,836
9,388
9,390
9,388
9,838
9,838
9,838

2,741
2,828
2,878
2,810

7,163
7,277
7,545
7,514

6,956
7,029
7,162
7,403

11,245
11,402
11,467
11,067

10,048
10,282
10,282
10,843

(L)

offered securities (excluding, for FH LB ’s, bonds held within the FH LB
System) and are not guaranteed by the U.S. G ovt.; for a listing o f these
securities, see table on opposite page. Loans are gross of valuation reserves
and represent cost for FN M A and unpaid principal for other agencies.

NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions o f dollars)
Issues for new capital

All issues (new capital and refunding)
Type o f issue

Type o f issuer

Period
Total

Gener­
al
obli­
gations

_
Reve­
nue

HAA1

U.S.
Govt.
loans

State

Special
district
and
O ther2
stat.
auth.

1970.................
1971.................
1972.................
1973................

18,164
24,962
23,652
23,970

11,850
15,220
13,305
12,257

6,082
8,681
9,332
10,632

131
1,000
959
1,022

103
62
57
58

4,174
5,999
4,991
4,212

1973 r—M a r ..
A p r...
M ay ..
Ju n e ..
J u ly ..
A ug...
S e p t..
O ct...
N o v ..
D e c...

2,467
1,826
1,939
2,152
2,028
1,657
1,750
2,313
2,257
2,089

1,228
870
825
1,025
1,458
1,067
721
1,344
866
919

930
947
1,106
861
564
588
741
964
1,383
995

303

173

6
9
8
5
6
2
2
6
9
1

613
159
291
189
516
529
236
337
243
450

918
731
945
1,082
363
498
838
842
1,247
1,022

1974—J a n . .. .
F e b ....
M a r ...

2,198
1,934
1,979

1,402
1,155
1,160

794
778
590 ' ‘ " 2 2 7

2
1
3

208
473
346

823
523
776

261
285




Use o f proceeds

T otal

Edu­
cation

R oads
and
bridges

Util­
ities4

Othei
H ous­ Veter­
ans’ pur­
ing5
aid
poses

18,110
24,495
22,073
22,408

5,062
5,278
4,981
4,311

1,532
2,642
1,689
1,458

3,525
5,214
4,638
5,654

466
2,068
1,910
2,639

7,526
9,293
6,741
8,335

936
934
703
881
1,149
630
675
1,135
766
616

2,210
1,757
1,775
2,144
2,001
1,602
1,653
2,163
1,929
1,954

374
306
299
542
391
311
327
299
356
372

153
12
233
102
231
30
66
142
42
165

501
452
430
643
366
352
579
412
596
487

347
88
224
334
3
290
384
251
247
344

833
898
588
523
1,009
618
298
1,060
687
582

1,163
938
856

2,130
1,869
1,868

595
449
359

36
53
258

373
612
349

56
39
241

1,070
717
660

5,595 8,399
8,714 10,246
9,496 9,165
9,507 10,249

1 Only bonds sold pursuant to 1949 H ousing 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 o f delivery to purchaser
and payment to issuer, which occurs after date o f sale.

Total
amount
deliv­
e red 3

4 W ater, sewer, and other utilities.
5 Includes urban redevelopment loans.
N ote .— Security Industries Assn. d a ta ; par amounts o f long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.

JU N E 1974 o SECU RITY ISSUES

A 41

TOTAL NEW ISSUES
(In millions o f dollars)
Gross proceeds, all issues1
N oncorporate

C orporate

Period
Total

U.S.
G ovt.2

Bonds

U.S.
Govt.
agency3

State
and local
(U.S.)4

O thers

Stock

Total
Total

Publicly
offered

Privately
placed

Preferred

Common

1970.......................
1971.......................
1972.......................
1973.......................

88,666
105,233
96,522
100,417

14,831
17,325
17,080
19,057

16,181
16,283
12,825
23,883

17,762
24,370
23,070
22,700

949
2,165
1,589
1,385

38,945
45,090
41,957
33,391

30,315
32,123
28,896
22,268

25,384
24,775
19,434
13,649

4,931
7,354
9,462
8,620

1,390
3,670
3,367
3,372

7,240
9,291
9,694
7,750

1973—M ar...........
A pr............
M ay..........
Ju n e..........
Ju ly...........
Aug...........
Sept...........
Oct............
N ov...........
Dec............

9,029
6,567
11,225
7,943
7,643
8,019
8,091
8,924
12,553
6,635

606
564
3,353
559
490
3,097
2,432
485
4,521
148

1,826
1,640
3,442
1,706
2,471
1,600
2,100
2,612
2,200
1,032

2,304
1,688
1,870
2,046
1,992
1,474
1,630
2,232
2,224
1,966

359
178
17
53
60
42
15
196
45
251

3,933
2,497
2,543
3,578
2,631
1,806
1,915
3,398
3,563
3,238

2,116
1,739
1,721
2,757
1,870
1,382
1,366
2,358
2,257
2,469

1,315
938
1,049
1,358
857
792
684
1,805
1,669
1,552

802
801
672
1,398
1,013
590
682
553
589
917

833
200
187
216
226
94
119
355
637
196

984
558
635
606
536
330
430
685
668
573

3,392
2,686
3,122

2,956
2,100
2,366

2,115
1,684
2,020

842
416
346

152
268
395

284
318
361

1974— Jan . r 6
F e b .r ........
M ar...........

Gross proceeds, major groups of corporate issuers
R eal estate
and financial

M anufacturing

Commercial and
miscellaneous

Transportation

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

9,192
9,426
4,821
4,329

1,320
2,152
1,809
643

1,963
2,272
2,645
1,283

2,540
2,390
2,882
1,559

2,213
1,998
2,862
1,881

47
420
185
43

8,016
7,605
6,392
5,585

3,001
4,195
4,965
4,661

5,053
4,227
3,692
3,535

83
1,592
1,125
1,369

3,878
6,601
8,485
5,661

1,638
2,212
2,095
2,860

27
22
12
25
169
49
78
52
93
18

177
237
30
133
139
149
149
63
61
145

327
139
143
89
112
129
96
147
92
285

317
91
236
183
250
83
140
114
241
226

6
1
8
1
15
2

1,076
150
361
1,099
651
419
334
342
584
569

1,351
369
410
497
269
90
252
608
496
319

548
258
355
303
244
320
228
633
296
350

668

D ec........................................

481
260
387
703
364
230
270
472
383
485

19
29
60
5
16
46
499
27

1,462
743
351
337
223
182
244
734
692
693

1,397
228
231
181
151
136
106
193
122
115

1974— J a n .r 6 ..................................
F e b .r ....................................
M ar.......................................

866
351
409

29
36
161

135
53
35

125
143
71

127
5
76

1

1,192
536
1,001

249
293
446

142
372
311

4
25
21

493
784
535

30
87
58

Period

1970...................................................
1971...................................................
1972...................................................
1973...................................................
1973

M ar.......................................
A pr........................................
M ay......................................
Ju n e......................................
Ju ly.......................................
Aug.......................................
Sept.......................................
Oct.........................................

1 Gross proceeds are derived by multiplying principal amounts or
num ber o f units by offering price.
2 Includes guaranteed issues.
3 Issues not guaranteed.
4 See n o t e to table at bottom o f opposite page.
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organ­
izations.




4
6

Public utility

Comm unication

6 Beginning Jan. 1974 noncorporate figures are no longer published by
the SEC.
N ote .—Securities and Exchange Commission estimates o f new issu e s
maturing in more than 1 year sold for cash in the United States.

A 42

SECURITY ISSUES □ JU N E 1974
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions of dollars)
D erivation o f change, all issuers1

Period

All securities

Bonds and notes

Common and preferred stocks

New issues

Retirements

N et change

New issues

Retirements

N et change

New issues

Retirements

Net change

1970.........................
1971.........................
1972.........................
1973P.......................

38,707
46,687
42,306
35,058

9,079
9,507
10,224
11,804

29,628
37,180
32,082
23,252

29,495
31,917
27,065
21,501

6,667
8,190
8,003
8,810

22,825
23,728
19,062
12,691

9,213
14,769
15,242
13,554

2,411
1,318
2,222
2,993

6,801
13,452
13,018
10,561

1972—IV .................

10,944

2,932

8,012

6,998

2,207

4,790

3,946

725

3,220

1973—1...................
I I .................
I l l ................
IV .................

8,219
9,418
6,638
10,783

2,806
2,470
2,150
4,378

5,412
6,947
4,488
6,405

4,198
5,769
4,521
7,013

1,781
1,664
1,579
3,786

2,417
4,106
2,941
3,227

4,020
3,648
2,118
3,768

1,025
806
571
591

2,995
2,842
1,547
3,177

!
i
i

Type of issues
Commercial
and other 2

M anu­
facturing

Period

Transpor­
tation 3

Public
utility

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

6,585
1,995
801

2,534
2,094
658

827
1,409
-1 0 9

2,290
2,471
1,411

900
711
1,044

1972—IV .................

116

290

575

479

1973—1....................
I I .................
I l l ...............
IV ................

135
632
165
-1 3 1

63
-2
450
147

-1 7 4
119
108
-1 6 2

377
327
247
460

1971.........................
1972.........................
1973.........................

Communi­
cation

Real estate
and financial 1

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

800
254
-9 3

6,486
5,137
4,265

4,206
4,844
4,509

3,925
3,343
3,165

1,600
1,260
1,389

5,005
7,045
3,522

2,017
2,096
3,141

179

47

1,056

1,735

944

89

1,920

580

127
327
414
176

-4 3
7
-4 4
-1 3

844
1,136
1,217
1,068

1,170
1,276
557
1,506

520
842
752
1,051

185
562
77
575

965
1,049
284
1,224

1,244
673
260
964

1 Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 R ailroad and other transportation companies.
N ote . —Securities and Exchange Commission estimates o f cash trans­
actions only. As contrasted with data shown on opposite page, new issues

exclude foreign sales and include sales o f securities held by affiliated com­
panies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions o f bonds into stocks. Retirements
are defined in the same way and also include securities retired with in­
ternal funds or with proceeds o f issues for th at purpose.

OPEN-END INVESTMENT COMPANIES
(In millions o f dollars)
Sales and redem ption
o f own shares

Assets (m arket value
at end o f period)

Sales 1 Redemp­
tions

N et
sales

T otal 2

Cash
position 3

1962................
1963...............
1964...............

2,699
2,460
3,404

1,123
1,504
1,875

1,576
952
1,528

21,271
25,214
29,116

1,315
1,341
1,329

1965...............
1966...............
1967...............

4,359
4,671
4,670

1,962
2,005
2,745

2,395
2,665
1,927

35,220
34,829
44,701

1.803
2,971
2,566

1968...............
1969...............
1970................

6,820
6,717
4,624

3,841
3,661
2,987

2,979
3,056
1,637

52,677
48,291
47,618

3,187
3,846
3,649

1971................
1972...............
1973...............

5,145
4,892
4,358

4,751
6,563
5,651

774
-1 ,6 7 1
1,261

56,694
59,831
46,518

3,163
3,035
4,002

O ther

19,956
23,873
27,787

Sales 1 Redemp­
tions

1973—A p r...
M a y ..
J u n e ..
July. .
Aug. .
33,417
31,858
S ep t...
O c t.. .
42,135
N o v ...
49,490
D ec...
44,445
43,969 1974—Jan.. .
F e b ...
M ar...
53,531
A p r...
56,796
42,516

1 Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment o f investment in­
come dividends; excludes reinvestment o f realized capital gains dividends.
2 M arket value at end o f period less current liabilities.




Sales and redem ption
o f own shares

Assets (m arket value
at end o f period)

M onth

Year

N et
sales

T otal 2

Cash
position 3

O ther

300
285
303
364
239
330
305
502
349

452
446
349
357
432
395
559
542
392

-1 2 0
-1 6 1
-4 6
-7
-1 9 3
-6 5
-2 5 4
-4 0
-4 3

50,837
48,588
48,127
50,933
49,553
52,322
51,952
45,814
46,518

3,837
4,154
4,164
4,594
4,567
4,641
4,168
4,126
4,002

46,464
44,434
43,963
46,339
44,986
47,681
47,784
41,688
42,516

334
215
297
267

325
303
346
327

9
-8 8
-4 9
-6 0

47,094
45.958
44,423
42,679

4,226
4,447
4,406
4,426

42,863
41,511
40,017
38,253

3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.
N ote .—Investment Com pany Institute data based on reports o f m em­
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. D ata reflect
newly formed companies after their initial offering o f securities.

JUNE 1974 □ BUSINESS FINANCE

A 43

CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)

Year

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

Corporate
capital
consump­
tion
allow­
ances 1

1968................
1969................
1970................
1971................
1972................
1973 ...............

87.6
84.9
74.0
85.1
9 8.0
126.3

39.9
40.1
34.8
37.4
42.7
55.8

47.8
44.8
39.3
47.6
55.4
70.4

23.6
24.3
2 4.7
25.1
26.0
27.8

24.2
20.5
14.6
22.5
29.3
42.6

46.8
51.9
56.0
60.4
65.9
71.4

Q uarter

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

Corporate
capital
consum p­
tion
allow­
ances 1

1972—1
II
I I I ....
I V . .. .

92.8
94.8
98.4
106.1

40.6
41.4
42.9
45.9

52.2
53.4
55.6
60.3

25.7
25.9
26.2
26.4

26.5
27.5
29.4
33.9

63.4
66.2
66! 0
68.0

1973_I
I I ........
I I I ....
I V .. . .

119.6
128.9
129.0
127.4

52.7
57.4
57.6
55.7

66.9
71.6
71.5
71.6

26.9
27.3
28.1
29.0

40 .0
44.2
43.4
42.6

69.3
70.5
71.7
74.2

i Includes depreciation, capital outlays charged to current accounts, and
accidental damages.

N ote . —D ept, of Commerce estimates.
adjusted annual rates.

Q uarterly data are at seasonally

CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions o f dollars)
C urrent assets
Net
working
capital

End o f period

Total

Cash

U.S.
Govt.
securi­
ties

C urrent liabilities

Notes and accts.
receivable
U.S.
Govt, i

Other

Inven­
tories

Other

Total

Notes and accts.
payable
Accrued
Federal
income
U.S.
taxes
G o v t.1 Other

Other

1969................................
1970.................................
1971.................................

185.7
187.4
204.9

473.6
492.3
518.8

47.9
50.2
55.7

10.6
7.7
10.7

4 .8
4 .2
3.5

192.2
201.9
208.8

186.4
193.3
200.3

31.6
35.0
39.7

287.9
304.9
313.9

7.3
6 .6
4 .9

192.0
204.7
207.3

12.6
10.0
12.2

76.0
83.6
89.5

1972—1...........................
I I ..........................
I l l ........................
IV ........................

209.8
215.0
219.2
224.3

528.1
536.5
547.5
563.1

55.6
56.0
57.7
60.5

10.2
8.9
7.8
9 .9

3.4
2 .8
2.9
3.4

212.8
217.8
224.1
230.5

204.3
207.7
212.2
215.1

41.8
43.1
42.8
43.6

318.3
321.5
328.3
338.8

4 .9
4 .9
4.7
4 .0

207.0
208.5
212.1
221.6

13.3
11.4
12.7
14.1

93.2
96.7
98.8
99.1

1973—1...........................
I I .........................
I l l .......................
IV ........................

231,8
237.7
241.9
245.3

579.2
596.8
613.6
631.4

61.2
62.3
62.2
65.2

10.8
9 .6
9 .5
10.7

3.2
2.9
3 .0
3.5

235.7
245.6
254.2
255.8

222.8
230.3
238.2
247.0

45.5
46.0
46.6
49.3

347.4
359.1
371.7
386.1

4.1
4.5
4 .4
4.3

222.8
232.5
240.8
252.0

15.7
13.9
15.3
16.6

104.7
108.1
111.2
113.3

1 Receivables from, and payables to, the U.S. G ovt, exclude amounts
offset against each other on corporations’ books.

N o te .—Based on Securities and Exchange Commission estimates,

BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions of dollars)
Public utilities

T ransportation

M anufacturing
Period

Mining

Total
Durable

N on­
durable

Rail­
road

Air

Other

Electric

Commu­
nications
Gas
and other

O th e r1

Total
(S.A.
A.R.)

1970..........................
1971..........................
1972.........................
1973.........................

79.71
81.21
88.44
99 .7 4

15.80
14.15
15.64
19.25

16.15
15.84
15.72
18.76

1.89
2.16
2.45
2.74

1.78
1.67
1.80
1.96

3.03
1.88
2.46
2.41

1.23
1.38
1.46
1.66

10.65
12.86
14.48
15.91

2.49
2.44
2.52
2.76

10.10
10.77
11.89
12.85

16.59
18.05
20.07
21.40

1972—1....................
I I .................
I l l .................
IV .................

19.38
22.01
21.86
25.20

3.29
3.71
3.86
4.77

3.32
3.92
3.87
4.61

.58
.61
.59
.63

.48
.48
.38
.47

.50
.73
.61
.63

.32
.39
.35
.40

3.19
3.61
3.67
4.01

.44
.62
.72
.73

2.72
2.95
2.84
3.39

4.55
4.98
4.97
5.57

86.79
87.12
87.67
91.94

1973—1....................
II ..................
I l l .................
IV .................

21.50
24.73
25.04
28.48

3.92
4.65
4.84
5.84

3.88
4.51
4.78
5.59

.63
.71
.69
.71

.46
.46
.48
.56

.52
.72
.57
.60

.32
.43
.44
.47

3.45
3.91
4.04
4.54

.50
.68
.77
.82

2.87
3.27
3.19
3.53

4.94
5.40
5.24
5.83

96.19
97.76
100.90
103.74

1974—12.................
112 a .............

23.92
27.83

4.85
5.54

4.54
5.60

.75
.80

.50
.60

.48
.65

.39
.41

3.99
4.48

.53
.91

1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.




7.90
8.83

107.18
109.96

N ote . —D ept, of Commerce and Securities and Exchange Commission
estimates for corporate and noncorporate business; excludes agriculture,
real estate operators, medical, legal, educational, and cultural service, and
nonprofit organizations.

A 44

REAL ESTATE CREDIT □ JU N E 1974
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions of dollars)
End o f year

Type o f holder, and type o f property

End o f quarter
1973

1970

1974

1972

1971

III

IV

ALL H O LD ER S.
1- to 4-fam ily...
M ultifam ily1. . .
C ommercial___
F a rm ...................

451,726

499,758

565,196

579,852

600,197

280,175
58,023
82,292
31,236

635,137

345,500
76,585
107,673
35,438

353,971
78,536
110,894
36,451

619,996

307,200
67,367
92,333
32,858

366,202
81,130
115,150
37,715

378,382
83,521
119,504
38,589

646,280

386,489
85,394
123,855
39,399

392,053
86,760
127,228
40,239

PRIVATE FINANCIAL IN STITU TIO N S.
1- to 4-family..................................................
M ultifam ily1...................................................
Commercial.....................................................
F arm .................................................................

355,929

394,239

450,371

463,105

480,242

495,044

505,583

253,540
52,498
78,345
9,856

288,169
59,293
92,387
10,522

296,369
60,658
95,377
10,701

307.423
62,429
99,364
11,026

514,110

231,317
45,796
68,697
10,119

316,754
63.566
103,429
11,295

322,296
64,723
107,018
11,546

327,146
65,555
109,891
11,518

9 9 ,3 1 4

1 0 3 ,548

109,114

11 4,788

59,127
6,109
33,342
4,970

62,181
6,469
35,224
5,240

65,484
6,745
37,181
5,378

11 9 ,0 6 8

12 1 ,6 6 8

67,998
6,932
38,696
5,442

69,351
7,178
39,664
5,475

7 3,275

8 2 ,5 1 5

1- to 4-fam ily.. . .
M ultifam ily1. . . .
Com m ercial.........
F a rm .....................

42,329
3,311
23,284
4,351

48,020
3,984
26,306
4,205

57,004
5,778
31,751
4,781

M utual savings b a n k s.

5 7 ,9 4 8

6 1 ,9 7 8

37,342
12,594
7,893
119

67,556
41,650
15,490
10,354
62

6 8 ,9 2 0

70 ,634

7 2 ,0 3 4

38,641
14,386
8,901
50

42,524
15,645
10,683
68

43,003
16,394
11,178
59

73,231

73 ,9 5 7

43,738
16.567
11,670
59

44,247
16,843
12,084
57

44,462
17,011
12,425
59

150,331

174,250

2 2 2 ,5 8 0

22 9 ,1 8 2

142,275
17,355
14,620

206,182
167,049
20,783
18,350

2 1 3 ,0 5 0

172,528
21,369
19,153

180.423
21,880
20,277

185,706
22,391
21,085

2 3 2 ,1 0 4

2 3 6 ,5 1 4

124,970
13,830
11,531

188,051
22,561
21,492

191,529
22,800
22,185

8 1 ,1 8 0
2 2 ,0 0 0

81,971
2 1 , 804

18,387
34,746
6,047

18,566
35,617
5,984

Comm ercial ban ks2.

1- to 4-family..........
M ultifam ily1...........
C om m ercial.............
F a rm .........................
Savings and loan associations.

1- to 4-family.........................
M ultifam ily1..........................
C om mercial............................
L ife insurance com panies .

1- to 4-family.................
M ultifam ily1.................
C om m ercial...................
F a rm ...............................
FEDERAL AND RELATED AGENCIES.
1- to 4-family..................................................
M ultifam ily1...................................................
F arm .................................................... ............
Government N ational M ortgage Association

1- to 4-family..........................................
M ultifam ily1..........................................

74 ,3 7 5

7 5 ,496

77,319
22,466
17,242
31,932
5,679

77,914

7 9 ,0 4 0

24,604
16,773
28,518
5,601

77 ,5 8 7

26,676
16,061
25,989
5,649

22,190
17,535
32,199
5.663

21,816
17,686
32,685
5,727

21,826
17,863
33,493
5,858

32.992

39,357

45,790

47,252

48,991

53,008

55,664

21.993
3,375
7,624

30,147
6,086
9,557

58,430

26,453
4,566
8,338

30,708
6,503
10,041

31,276
7,128
10,587

33,725
8,171
11,112

35,454
8,489
11,721

37,168
8,923
12,339

5 ,2 2 2

5 ,3 2 3

5,113
2,490
2,623

4 .6 6 3
2 ,0 4 0

2,902
2,320

2,770
2,553
819

Farmers H om e A dm inistration .

767

1- to 4-family...........................
F a rm ..........................................

330
437

398
421

3 ,5 0 5

3 ,3 8 9

2,771
734

2,517
782

Federal Housing and Veterans Adm inistra­
tions ..........................................................

1- to 4-family..............................................
M ultifam ily1...............................................

837
387
450

3 ,9 0 8

4 ,4 2 9

4 ,0 2 9

1,300
2,608

1,462
2,967

3 ,6 0 4

2,623

1,330
2,699

1,189
2,415

1 ,2 0 0
550

1,3 0 0

860

900

1 ,0 0 0

410
450

430
470

480
520

3,338
2,199
I,139

3 .3 5 4

3 ,2 9 3

3 ,4 4 6

3 ,4 7 6

2,093
1,261

1,998
I,295

2,046
I,400

2,013
1,463

3,514
1,964
1,550

21 ,4 1 3

22,831

2 4 ,1 7 5

2 4 ,8 7 5

19,479
3,352

20,370
3,805

20,516
4,359

650

596
704

15 ,5 0 2

17,791

15,181
321

16,681
1,110

1 9 , 791
17,697
2,094

20,571

1- to 4-family............................................
M ultifam ily1............................................

18,217
2.354

18,521
2,892

Federal land banks (farm o n ly )................. .

7,187

7,917

9,107

9,591

10,117

10,592

11,071

11,635

357

964

1 ,7 8 9

1,718

2 ,0 2 9

2 ,6 0 4

1,698
20

1,973
56

2 ,4 2 3
2 ,2 9 4

2 ,6 3 7
2 ,4 7 2

Federal N ational M ortgage A ssociation . .

Federal Hom e Loan M ortgage Corporation

1- to 4-family..............................................
M ultifam ily1..............................................
G N M A P ools . . . .

1- to 4-family.
M ultifam ily1..
INDIVIDUALS AND O T H E R S 3.
1- to 4-family...................................
M ultifam ily1....................................
Commercial......................................
F a rm ..................................................

357

934
30

1,754
35

452

3 ,1 5 4

5 ,8 1 5

6 ,4 9 5

452

3,153
1

5,620
195

62,805

66,162

26,865
8,868
13,579
13,493

27,207
10,314
13,977
14,664

1 Structure of five or more units.
2 Includes loans held by nondeposit trust companies but not bank trust
departments.
3 Includes some U.S. agencies for which am ounts are small or separate
data are not readily available.
N ote .— Based on data from various institutional and Government




129

2,446
158

7,331

8 ,2 8 7

9 ,1 0 9

1 0 ,8 6 5

6,250
245

7,054
277

7,964
323

8,745
364

10,431
434

69,035

69,495

70,964

71,944

73,890

73,740

27,184
II,2 0 6
15,286
15,359

26,894
11,375
15,517
15,709

27,503
II,5 7 3
15,786
16,102

27,903
II,7 8 4
16,075
16,182

28,739
12,182
16,837
16,132

27,739
12,282
17,337
16,382

165

sources, with some quarters estimated in part by Federal Reserve in
conjunction with the Federal H om e Loan Bank Board and the Dept, o f
Commerce. Separation o f nonfarm mortgage debt by type o f property,
where not reported directly, and interpolations and extrapolations where
required, estimated mainly by Federal Reserve.

JU N E 1974 □ REAL ESTATE CREDIT

A 45

FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATIONSECONDARY MORTGAGE MARKET ACTIVITY
(In millions of dollars)
FN M A
Mortgage
transactions
(during period)

Mortgage
holdings

End of
period

Total i

FH A insured

VAguaranteed

P ur­
chases

15,492
17.791
19.791
24.175

11,063
12,681
14,624
16.852

4,429
5,110
5,112
6.352

5,079
3,574
3,699
6,127

1973—Mar..
A pr..
M ay.
June.
July.
Aug..
Sept..
O ct..
Nov..
Dec..

20,571
20.791
21,087
21,413
21,772
22,319
22,831
23,348
23,912
24.175

15,201
15,390
15,581
15,768
15,877
16,085
16,293
16,510
16,734
16.852

5,259
5,269
5.335
5,411
5,574
5,761
5,937
6,101
6,294
6.352

522
355
472
516
516
699
633
659
656
410

1974—Jan ..
Feb..
M ar..
A pr..

24,424
24,529
24,875
25,263

17,008
17,050
17,315
17,450

6,348
6.336
6,340
6,503

350
242
462
526

197
197
197
197

0
1
2
3

FH L M C
M ortgage
commitments

M ade
during
period

O ut­
stand­
ing

20
336
211
71

8,047
9,828
8,797
8,914

40

Sales

M ortgage
holdings

Total

FH A
VA

5,203
6,497
8,124
7.889

325
968
1,789
2.604

933
1,211
1,180
1,191
1,102
1,019
724
264
200
158

8,139
8,742
9,312
9,778
9,859
9,809
9,602
8,918
8,690
7.889

110
489
1,646
2,154

6,715
6,768
7,913
9,292

1 Includes conventional loans not shown separately.
N o t e .—D ata from FN M A and FH L M C , respectively.

For F N M A : Holdings include loans used to back bond issues guaranteed

by G N M A . Commitments include some multifamily and nonprofit
hospital loan commitments in addition to 1- to 4-family loan commitments
accepted in F N M A ’s free market auction system, and through the F N M A G N M A Tandem Plan (Program 18).

M ortgage
transactions
(during period)
C on­
ven­
tional

P ur­
chases

325
821
1,503
1,743

147
286
861

325
778
1,298
1,334

1,718
1,784
1,906
2,029
2,158
2,307
2,423
2,527
2,565
2.604

1,589
1,646
1,695
1,716
1,714
1.728
1.729
1.742
1,746
1.743

128
138
211
313
444
579
694
785
819
861

119
126
147
154
140
161
126
113
46
50

2,621
2,625
2,638
2,722

1,736
1.730
1,724
1,756

885
895
914
967

34
21
29
101

Sales

M ortgage
commitments

M ade
during
period

O ut­
stand­
ing

1,606
1,629

182
198
186

141
193
187
159
139
208
143
63
45
43

295
343
344
316
278
291
288
218
207
186

26
49
595
400

161
185
748
1,037

64
408
409
68
51
17
21

For F H L M C : D ata for 1970 begin with Nov. 26, when the FH L M C
became operational. Holdings and transactions cover participations as
well as whole loans. Holdings include loans used to back bond issues
guaranteed by G N M A. Commitments cover the conventional and Govt.underwritten loan programs.

TERMS AND YIELDS ON NEW HOME MORTGAGES
Conventional mortgages
Yields (per cent) in
prim ary m arket

T erm s1
Period

FH A insured
loans—yield
in private
secondary
m arket 5

C ontract
rate (per
cent)

Fees and
charges
(per cent)2

M aturity
(years)

Loan/price
ratio
(per cent)

Purchase
price (thous.
o f dollars)

Loan
am ount
(thous. o f
dollars)

FHLBB
series 3

HUD
series 4

1970.............................
1971.............................
1972.............................
1973..............................

8.27
7.60
7.45
7.78

1.03
.87
.88
1.11

25.1
26.2
27.2
26.3

71.7
74.3
76.8
77.3

35.5
36.3
37.3
37.1

25.2
26.5
28.1
28.1

8.44
7.74
7.60
7.95

8.52
7.75
7.64

9.03
7.70
7.52

1973—M ay.................
Ju n e.................
Ju ly .................
A u g ................
Sept.................
O ct...................
N ov.................
D ec..................

7.55
7.62
7.69
7.77
7.98
8.12
8.22
8.31

1.05
1.08
1.11
1.08
1.19
1.20
1.08
1.12

25.9
26.3
26.3
26.7
26.6
26.1
26.0
25.6

77.7
78.0
78.1
76.7
77.3
76.9
75.5
75.5

35.6
35.8
37.0
38.6
37.2
38.5
38.9
37.7

27.2
27.5
28.3
28.9
28.2
29.0
28.8
28.0

7.71
7.79
7.87
7.94
8.17
8.31
8.39
8.49

7.95
8.05
8.40
8.85
8.95
8.80
8.75
8.75

7.79
7.89
8.19

1974— j a n .................
Feb..................
M a r.r .............
A pr..................
M ay.*.............

8.33
8.40
8,43
8.47
8.52

1.16
1.33
1.35
1.21
1.22

26.4
25.9
26.4
26.1
26.1

76.3
76.5
77.3
77.3
77.3

38.8
37.8
39.1
38.5
38.4

28.9
28.5
29.5
29.2
29.2

8.52
8.62
8.64
8.67
8.72

8.65
8.55
8.60
8.90

1 Weighted averages based on probability sample survey of character­
istics o f mortgages originated by major institutional lender groups (in­
cluding mortgage companies) for purchase o f single-family homes, as
compiled by Federal Home Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. D ata are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage am ount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer o f property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates
NOTE TO TABLE AT BOTTOM O F PAGE A-46:
American Life Insurance Association data for new commitments of
$100,000 and over each on mortgages for multifamily and nonresidential
nonfarm properties located largely in the U nited States. The 15 companies
account for a little more than one-half o f both the total assets and the
nonfarm mortgages held by all U.S. life insurance companies. Averages,
which
are based on num ber o f loans, vary in part with loan composition
FRASER
by type and location o f property, type and purpose o f loan, and loan

Digitized for


9.18
8.97
8.86
8.78
8.54
8.66
9.17

(as shown in first column o f this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices o f prevailing
local conditions as of the first of the succeeding month. Yields are derived
from weighted averages o f private secondary market prices for Sec. 203,
30-year mortgages with minimum downpayment and an assumed pre­
payment at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates.
amortization and prepayment terms. D ata for the following are limited
to cases where information was available or estimates could be made:
capitalization rate (net stabilized property earnings divided by property
value); debt coverage ratio (net stabilized earnings divided by debt service);
and per cent constant (annual level payment, including principal and
interest, per $100 o f debt). All statistics exclude construction loans,
increases in existing loans in a company’s portfolio, reapprovals, and loans
secured by land only.

A 46

REAL ESTATE CREDIT □ JUNE 1974

FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES
Date o f auction
1973

Item

1974

N ov. 26 Dec. 17

Jan. 14

Feb. 11

Feb. 25

24.9
20.9

38.6
36.2

40.2
35.6

50.4
49.5

58.0
42.3

351.1
285.3

31.0
22.1

51.4
32.2

48.9
34.5

48.4
48.1

48.6
39.4

8.81
8.90

8.78
8.82

8.71
8.77

8.53
8.69

8.43
8.50

Amounts (millions o f dollars):
Govt.-underwritten loans
Offered1...................................
A ccepted..................................
C onventional loans
Offered1...................................
A ccepted..................................
Average yield (per cent) on short­
term commitments 2
Govt.-underwritten lo an s.........
Conventional lo an s...................

1 M ortgage am ounts offered by bidders are total bids received.
2 Average accepted bid yield (before deduction o f 38 basis-point fee
paid for mortgage servicing) for home mortgages assuming a prepayment

M ar. 11 Mar. 25

Apr. 8

Apr. 22

M ay 6

May 20

June 3

1,154.7
332.5

1,061.4
267.0

33.6
168.5

256.0
111.1

217.7
82.8

85.1
71.5

74.2
50.1

126.3
34.2

163.9
63.3

80.3
40.9

74.3
29.8

41.4
23.6

26.1
20.5

8.44
8.47

8.62
8.64

8.95
9.00

9.18
9.21

9.34
9.4 4

9.48
9.63

9 .54
9.70

period of 12 years for 30-year loans, without special adjustment for
FN M A commitment fees and FN M A stock purchase and holding require­
ments. Commitments mature in 4 months.

MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT
(End o f period, in billions of dollars)

H older

Dec. 31,
1970

Dec. 31,
1971

Dec. 31,
1972

M ar. 31,
1973

June 30,
1973

Sept. 30,
1973

Dec. 31,
1973

All h o ld ers.......................................................
F H A ..............................................................
V A .................................................................
Commercial b an k s.........................................
F H A ..............................................................
V A .................................................................
M utual savings banks....................................
F H A ..............................................................
V A .................................................................
Savings and loan assns..................................
F H A ..............................................................
V A .................................................................
Life insurance cos...........................................
F H A ..............................................................
V A .................................................................
O thers...............................................................
F H A ..............................................................
V A .................................................................

109.2
91.7
37.3
10.5
7 .9
2 .6
28.1
16.1
12.0
18.7
10.2
8.5
16.8
11.4
5.4
35.1
26.3
8.8

120.8
81.3
39.5
11.3
8.3
3.0
28.2
16.1
12.1
24.3
13.7
10.6
15.8
10.8
5 .0
41.2
32.4
8.8

131.1
86.4
44.7
11.7
8.5
3.2
28.6
16.0
12.6
28.9
15.4
13.5
14.7
10.0
4.7
47.2
36.5
10.7

132.4
86.6
45.8
11.7
8.5
3.2
28.7
15.9
12.8

133.6
86.4
4 7.2
11.7
8.5
3 .2
28.7
15.8
12.9

133.8
85.6
48.2
11.4
8.2
3.2
28.6
15.7
12.9

50.0
11.2
7.9
3.3
28.4
15.5
12.9

N ote .—VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.

1

29.5
14.3
9.7
4 .6
48.2

}

29.8
14.0
9 .5
4.5
4 9.4

)

30.1
13.7
9.3
4 .4
50.0

)

29.7
13.6
9 .2
4 .4

Detail by type of holder partly estimated by Federal Reserve for first
and third quarters, and for most recent quarter.

COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Averages
Number
o f loans

Total
amount
committed
(millions o f
(dollars)

912
1,664
2,132

1971—Nov.,
Dec..
1972—J a n . . .
F eb ...
M ar..
A pr..,
M a y .,
J u n e .,
Ju ly .
Aug..
S ept..
O ct..
N ov..
D ec..

Period

1970.,
1971.,
1972.

See N ote on p. A-45.




Loan
amount
(thousands
o f dollars)

Contract
interest
rate
(per cent)

M aturity
(yrs./mos.)

Loanto-value
ratio
(per cent)

Capitaliza­
tion rate
(per cent)

Debt
coverage
ratio

Per cent
constant

2,341.1
3.982.5
4.986.5

2,567
2,393
2,339

9.93
9.07
8.57

22/8
22/10
23/3

74.7
74.9
75.2

10.8
10.0
9 .6

1.32
1.29
1.29

11.1
10.4
9.8

136
133

288.2
290.0

2,119
2,181

9.01
8.96

23/5
23/0

75.6
74.4

9 .9
9.9

1.27
1.30

10.2
10.2

107
122
220
200
246
268
170
178
152
159
180
130

198.6
423.5
530.4
381.1
399.6
683.2
421.2
515.7
354.1
343.5
371.7
363.9

1,856
3,471
2,411
1,906
1,624
2,549
2,478
2,897
2,329
2,161
2,065
2,799

8.78
8.62
8.50
8.44
8.48
8.55
8.56
8.54
8.58
8.65
8.63
8.64

22/1
22/6
24/2
24/6
23/4
23/0
23/0
23/0
23/4
23/0
23/2
22/8

73.3
73.3
76.3
76.3
76.0
75.4
74.5
74.9
75.7
75.8
74.7
74.4

10.0
9 .7
9.5
9 .5
9 .5
9.5
9.5
9.5
9.5
9.6
9 .6
9.8

1.31
1.31
1.29
1.29
1.26
1.29
1.31
1.27
1.28
1.29
1.28
1.37

10.2
10.0
9 .7
9 .6
9.8
9.8
9.8
9.9
9.8
9.9
9.9
9.9

JU N E 1974 □ CONSUM ER CREDIT

A 47

TOTAL CREDIT
(In millions of dollars)
Instalm ent
End o f period

Total

A uto­
mobile
paper

Total

N oninstalm ent

Other
consumer
goods
paper

Home
improve­
ment
loans1

Personal
loans

Total

Single­
payment
loans

Charge accounts
Service
credit

Retail
outlets

Credit
cards 2

1965.
1966.
1967.
1968.
1969

89,883
96,239
100,783
110,770
121,146

70,893
76,245
79,428
87,745
97,105

28,437
30,010
29,796
32,948
35,527

18,483
20,732
22,389
24,626
28,313

3,736
3,841
4,008
4,239
4,613

20,237
21,662
23,235
25,932
28,652

18,990
19,994
21,355
23,025
24,041

7,671
7,972
8,558
9,532
9,747

5,724
5,812
6,041
5,966
5,936

706
874
1,029
1,227
1,437

4,889
5,336
5,727
6,300
6,921

1970..
1971.,
1972,,
1973,,

127,163
138,394
157,564
180,486

102,064
111,295
127,332
147,437

35,184
38,664
44,129
51,130

31,465
34,353
40,080
47,530

5,070
5,413
6,201
7,352

30,345
32,865
36,922
41,425

25,099
27,099
30,232
33,049

9,675
10,585
12,256
13,241

6,163
6,397
7,055
7,783

1,805
1,953
1,947
2,046

7,456
8,164
8,974
9,979

1973--A pr............
M ay..........
Ju n e..........
Ju ly ...........
A ug...........
Sept...........
O ct............
N o v -.........
Dec............

161,491
164,277
167,083
169,148
171,978
173,035
174,840
176,969
180,486

131,022
133,531
136,018
138,212
140,810
142,093
143,610
145,400
147,437

46,478
47,518
48,549
49,352
50,232
50,557
51,092
51,371
51,130

40,441
41,096
41,853
42,575
43,505
44,019
44,632
45,592
47,530

6,408
6,541
6,688
6,845
7,009
7,120
7,235
7,321
7,352

37,695
38,376
38,928
39,440
40,064
40,397
40,651
41,116
41,425

30,469
30,746
31,065
30,936
31,168
30,942
31,230
31,569
33,049

12,686
12,817
12,990
12,968
13,111
13,088
13,145
13,161
13,241

6,129
6,387
6,544
6,424
6,475
6,229
6,554
6,761
7,783

1,907
1,932
2,011
2,055
2,130
2,106
2,036
2,024
2,046

9,747
9,610
9,520
9,489
9,452
9,519
9,495
9,623
9,979

1974—Jan ............
Feb............
M ar...........
A pr............

178,686
177,522
177,572
179,495

146,575
145,927
145,768
147,047

50,617
50,386
50,310
50,606

47,303
46,781
46,536
47,017

7,303
7,343
7,430
7,573

41,352
41,417
41,492
41,851

32,111
31,595
31,804
32,448

13,117
13,159
13,188
13,315

6,894
6,136
6,097
6,556

1,981
1,882
1,842
1,878

10,119
10,418
10,677
10,699

1 Holdings of financial institutions; holdings o f retail outlets are in­
cluded in “ Other consumer goods paper.”
2 Service station and miscellaneous credit-card accounts and homeheating-oil accounts.

N o t e .—Consumer credit estimates cover loans to individuals for
household, family, and other personal expenditures, except real estate
mortgage loans- For back figures and description o f the data, see “ Con­
sumer Credit,’ Section 16 (New) of Supplement to Banking and M onetary
Statistics , 1965 and B u ll e tin s for Dec. 1968 and Oct. 1972.

CONSUMER CREDIT HELD BY COMMERCIAL BANKS
(In millions of dollars)
Instalment

End of period

Automobile paper

Total
Total

Purchased

Direct

Other consumer goods paper
Mobile
homes

Credit
cards

35,652
38,265
40,630
46,310
50,974

28,962
31,319
33,152
37,936
42,421

10,209
11,024
10,972
12,324
13,133

5,659
5,956
6,232
7,102
7,791

1970.......................
1971.......................
1972.......................
1973.......................

53,867
60,556
70,640
81,248

45,398
51,240
59,783
69,495

12,918
13,837
16,320
19,038

7,888
9,277
10,776
12,218

1973—A pr............
M ay..........
Ju n e..........
Ju ly ...........
Aug...........
Sept...........
O ct............
Dec...........

73,696
75,066
76,519
77,556
79,036
79,526
80,281
80,830
81,248

62,459
63,707
64,999
66,065
67,381
67,918
68,627
69,161
69,495

17,327
17,716
18,138
18,439
18,771
18,886
19,123
19,198
19,038

1974—Jan............
Feb............
M ar...........
A pr............

81,081
80,909
80,918
81,750

69,429
69,246
69,232
69,944

18,885
18,770
18,775
18,896

See also N ote to table at top o f page.




Other

Home
improve­
ment
loans

Personal loans
Check
credit

Other

Single­
payment
loans

8,160
8,699

6,690
6,946
7,478
8,374
8,553

------------ ^

V------------1965.......................
1966.......................
1967.......................
1968.......................
1969.......................

N onin­
stalment

4,166
4,681
5,469
1,307
2,639
4,423
5,786
7,223

11,436
11,680
11,866
12,023
12,190
12,160
12,262
12,306
12,218
12,113
12,028
11,985
12,039

5,387
6,082

2,571
2,647
2,731
2,858
2,996

798
1,081

3,792
4,419
5,288
6,649

7,113
4,501
5,122
6,054

3,071
3,236
3,544
3,982

1,336
1,497
1,789
2,144

9,280
10,050
11,158
12,187

8,469
9,316
10,857
11,753

6,163
6,321
6,473
6,629
6,825
6,956
7,106
7,208
7,223

5,290
5,360
5,502
5,603
5,792
5,909
5,991
6,171
6,649

5,401
5,538
5,688
5,815
5,923
5,978
6,012
6,035
6,054

3,581
3,635
3,700
3,774
3,863
3,903
3,950
3,979
3,982

1,837
1,868
1,909
1,934
1,982
2,027
2,060
2,085
2,144

11,424
11,589
11,723
11,848
12,035
12,099
12,123
12,179
12,187

11,237
11,359
11,520
11,491
11,655
11,608
11,654
11,669
11,753

7,237
7,285
7,333
7,399

6,826
6,770
6,667
6,761

6,041
6,063
6,082
6,208

3,944
3,937
3,958
4,028

2,167
2,173
2,169
2,180

12,216
12,220
12,263
12,433

11,652
11,663
11,686
11,806

6,357
7,011
7,748

A 48

JU N E 1974 □ CONSUMER CREDIT
INSTALMENT CREDIT HELD BY NONBANK LENDERS
(In millions o f dollars)
Finance companies

End o f period
T otal

O ther consumer
goods paper

A uto­
mobile
paper

Mobile
homes

O ther financial lenders

Home
improve­
ment
loans

Other

Retail outlets

Per­
sonal
loans

Total

Credit
unions

232
214
192
166
174

10,058
10,315
10,688
11,481
12,485

8,289
9,315
10,216
11,717
13,722

7,324
8,255
9,003
10,300
12,028

965
1,060
1,213
1,417
1,694

9,791
10,815
11,484
12,018
13,116

315
277
287
281
250

9,476
10,538
10,197
11,737
12,866

M is­
cellaneous
lenders1

A uto­
mobile
dealers

Total

Other
retail
outlets

1965.........................
1966.........................
1967.........................
1968.........................
1969.........................

23,851
24,796
24,576
26,074
27,846

9,218
9,342
8,627
9,003
9,412

1970..........................
1971.........................
1972.........................
1973.........................

27,678
28,883
32,008
37,243

9,044
9,577
10,174
11,927

2,464
2,561
2,916
3,378

3,237
3,052
3,589
4,434

199
247
497
917

12,734
13,446
14,912
16,587

15,088
17,021
19,511
22,567

12,986
14,770
16,913
19,609

2,102
2,251
2,598
2,958

13,900
14,151
15,950
18,132

218
226
261
299

13,682
13,925
15,689
17,833

1973

A pr...............
M ay .............
J u n e .............
Ju ly..............
A ug..............
Sept..............
O ct...............
N ov..............
D ec...............

33,078
33,859
34,367
35,020
35,634
35,993
36,365
36,887
37,243

10,617
10,872
11,121
11,365
11,583
11,721
11,859
11,949
11,927

2,991
3,025
3,081
3,132
3,187
3,235
3,269
3,310
3,378

3,831
3,985
4,002
4,103
4,194
4,265
4,316
4,371
4,434

611
656
694
733
771
809
847
886
917

15,028
15,321
15,469
15,687
15,899
15,963
16,074
16,371
16,587

20,190
20,599
21,084
21,394
21,808
22,129
22,315
22,505
22,567

17,455
17,832
18,269
18,517
18,961
19,207
19,339
19,517
19,609

2,735
2,767
2,815
2,877
2,847
2,922
2,976
2,988
2,958

15,295
15,366
15,568
15,733
15,987
16,053
16,303
16,847
18,132

278
284
289
293
296
297
300
302
299

15,017
15,082
15,279
15,440
15,691
15,756
16,003
16,545
17,833

1974—Jan................
Feb...............
M ar..............
A p r..............

37,140
37,148
37,005
37,291

11,754
11,710
11;624
11,684

3,392
3,406
3,324
3,364

4,460
4,486
4,497
4,547

940
968
1,018
1,057

16,594
16,578
16,542
16,639

22,301
22,413
22,562
22,753

19,429
19,430
19,550
19,704

2,872
2,983
3,012
3,049

17,705
17,120
16,969
17,059

296
293
292
293

17,409
16,827
16,677
16,766

4,343
4,925
5,069
5,424
5 ,' m

i Savings and loan associations and mutual savings banks.

See also N ote to table at top o f preceding page.

FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT
(Per cent per annum)
Commercial banks
M onth

Other
consumer
goods
(24 mos.)

Personal
loans
(12 mos.)

10.45
10.73
10.49
10.77
10.71
10.67
10.66
10.85
10.69

12.37
12.44
12.38
12.39
12.47
12.47
12.38
12.44
12.55

12.58
12.63
12.65
12.73
12.72
12.70
12.70
12.63
12.77

J u n e ...........
July............
A ug............
Sept............
O ct..............
N ov............
D ec.............

10.01
10.05
10.04
10.04
10.05
10.08
10.10
10.25
10.44
10.53
10.49
10.49

10.54
10.76
10.67
10.64
10.84
10.57
10.84
10.95
11.06
10.98
11.19
11.07

12.46
12.51
12.48
12.50
12.48
12.57
12.51
12.66
12.67
12.80
12.75
12.86

1974—Jan..............
Feb.............
M ar............
A p r............

10.55
10.53
10.50
10.51

11.09
11.25
10.92
11.07

12.78
12.82
12.82
12.81

1972—A pr.............
Ju n e ...........
July............
Aug............
Sept............
Oct..............
N ov............
D ec.............
1973—Jan..............
F eb.............
M ar............
A pr.............

New
autom o­
biles
(36 mos.)

M obile
homes
(84 mos.)

10 00
9 .9 6
9.98
9.97
10.02
10.02
10.01
10.02
10.01

Finance companies
Automobiles
Mobile
homes
New

Used

17.22
17.24
17.25
17.25
17.25
17.25
17.23
17.23
17.24

11.87
11.86
11.85
11.84
11.85
11.88
11.86
11.89
11.92

16.40
16.47
16.52
16.57
16.62
16.71
16.67
16.78
16.87

12.65
12.76
12.71
12.74
12.78
12.78
12.75
12.84
12.96
13.02
12.94
13.12

17.13
17.16
17.19
17.19
17.22
17.24
17.21
17.22
17.23
17.23
17.23
17.24

11.89
11.86
11.85
11.88
11.91
11.94
12.02
12.13
12.28
12.34
12.40
12.42

12.96
13.02
13.04
13.00

17.25
17.24
17.23
17.25

12.39
12.33
12.29
12.28

N ote .—Rates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) o f the Board o f Governors.
Commercial bank rates are “ most com m on” rates for direct loans with




Creditcard
plans

O ther
consumer
goods

Personal
loans

12.29

19.31

21.23

12.25

19.38

21.26

12.41

19.15

21.05

12.41

18.90

21.22

16.08
16.20
16.32
16.44
16.52
16.61
16.75
16.86
16.98
17.11
17.21
17.31

12.51

19.04

21.00

12.54

i8.92

20.79

12.73

18.88

20.76

12.77

18.93

20.55

12.90

18.69

20.52

13.12

18.77

20.65

16.56
16.62
16.69
16.76

13.24

18.90

20.68

13.15

18.68

20.52

specified maturities; finance company rates are weighted averages for
purchased contracts (except personal loans). For back figures and description of the data, see Bulletin for Sept. 1973.

JU N E 1974 o CONSUM ER CREDIT

A 49

INSTALMENT CREDIT EXTENDED AND REPAID
(In millions of dollasr)
By type
Period

Total

Automobile
paper

Other
consumer
goods paper

By holder

H om e
improve­
ment loans

Personal
loans

Commercial
banks

Finance
companies

Other
financial
lenders

Retail
outlets

Extensions
1966.............................
1967.............................
1968.............................
1969.............................
1970.............................
1971.............................
1972.............................
1973.............................

82,832
87,171
99,984
109,146
112,158
124,281
142,951
165,083

27,192
26,320
31,083
32,553
29,794
34,873
40,194
46,453

26,329
29,504
33,507
38,332
43,873
47,821

1973—A pr..................
M ay .................
Ju n e .................
J u ly .................
Aug..................
Sept..................
O ct...................
N ov .................
D ec..................

13,465
13,932
13,646
14,542
14,294
13,691
14,149
14,275
12,677

3,822
3,989
3,762
3,930
3,968
3,939
3,912
3,819
3,315

1974—Jan...................
Feb...................
M ar.................
A pr..................

13,714
13,541
13,823
14,179

3,492
3,389
3,484
3,545

66,859

2,223
2,369
2,534
2,831
2,963
3,244
4,006
4,728

27,088
28,978
32,860
35,430
35,528
38,343
43,152
47,043

30,073
31,382
37,395
40,955
42,960
51,237
59,339
69,726

25,897
26,461
30,261
32,753
31,952
32,935
38,464
43,221

10,368
11,238
13,206
15,198
15,720
17,966
20,607
23,414

16,494
18,090
19,122
20,240
21,526
22,143
24,541
28,722

5,563
5,504
5,505
5,943
5,961
5,537
5,911
5,978
5,254

365
374
400
433
408
410
415
402
429

3,715
4,065
3,979
4,236
3,957
3,805
3,911
4,076
3,679

5,644
5,859
5,684
5,976
6,195
5,809
6,060
6,222
5,124

3,555
3,820
3,584
3,824
3,685
3,602
3,623
3,564
3,279

1,792
1,868
1,978
2,110
1,943
2,019
1,951
2,029
1,897

2,474
2,385
2,400
2,632
2,471
2,261
2,515
2,460
2,377

5,662
5,647
5,933
6,034

373
409
424
447

4,187
4,096
3,982
4,153

5,715
5,794
5,710
5,838

3,693
3,656
3,497
3,671

1,911
1,861
1,976
2,054

2,395
2,230
2,640
2,616

5 5 ,599

Repayments
1966.............................
1967.............................
1968.............................
1969.............................
1970.............................
1971..............................
1972.............................
1973.............................

77,480
83,988
91,667
99,786
107,199
115,050
126,914
144,978

25,619
26,534
27,931
29,974
30,137
31,393
34,729
39,452

24,080
27,847
31,270
34,645
40,721
44,933
49,872
59,409

2,118
2,202
2,303
2,457
2,506
2,901
3,218
3,577

25,663
27,405
30,163
32,710
33,835
35,823
39,095
42,540

27,716
29,549
32,611
36,470
40,398
45,395
50,796
60,014

24,952
26,681
28,763
30,981
31,705
31,730
35,259
38,066

9,342
10,337
11,705
13,193
14,354
16,033
18,117
20,358

15,470
17,421
18,588
19,142
20,742
21,892
22,742
26,540

1973—A pr..................
M ay.................
Ju n e.................
J u ly .................
Aug..................
Sept..................
O ct...................
N ov..................
D ec..................

12,061
11,941
12,034
12,544
12,399
12,332
12,449
12,549
12,267

3,218
3,261
3,253
3,334
3,293
3,406
3,427
3,471
3,338

4,963
4,917
4,955
5,141
5,168
5,072
5,149
5,154
5,001

294
290
300
308
298
322
308
301
332

3,586
3,473
3,526
3,761
3,640
3,532
3,565
3,623
3,596

4,919
4,976
4,890
5,112
5,146
5,167
5,212
5,345
5,088

3,251
3,100
3,241
3,312
3,241
3,144
3,287
3,143
3,151

1,693
1,612
1,694
1,771
1,738
1,757
1,703
1,814
1,766

2,198
2,253
2,209
2,349
2,274
2,264
2,247
2,247
2,262

1974—Jan ...................
Feb..................
M ar..................
A pr..................

12,797
12,870
13,206
13,026

3,433
3,394
3,544
3,498

5,193
5,340
5,596
5,483

356
323
308
312

3,815
3,813
3,758
3,733

5,254
5,430
5,479
5,470

3,418
3,423
3,452
3,375

1,823
1,692
1,827
1,784

2,302
2,325
2,448
2,397

N et change
1966.............................
1967.............................
1968.............................
1969.............................
1970.............................
1971.............................
1972.............................
1973..............................

5,352
3,183
8,317
9,360
4,959
9,231
16,037
20,105

1,573
-2 1 4
3,152
2,579
-3 4 3
3,480
5,465
7,001

2,249
1,657
2,237
3,687
3,152
2,888
5,727
7,450

105
167
231
374
457
343
788
1,151

1,425
1,573
2,697
2,720
1,693
2,520
4,057
4,503

2,357
1,833
4,784
4,485
2,977
5,842
8,543
9,712

945
-2 2 0
1,498
1,772
-1 6 8
1,205
3,205
5,155

1,026
901
1,501
2,005
1,366
1,933
2,490
3,056

1,024
669
534
1,098
784
251
1,799
2,182

1973—A pr..................
M ay.................
June.................
Ju ly .................
Aug..................
Sept..................
Oct...................
D ec..................

1,404
1,991
1,612
1,998
1,895
1,359
1,700
1,726
410

604
728
509
596
675
533
485
348
-2 3

600
587
550
802
793
465
762
824
253

71
84
100
125
110
88
107
101
97

129
592
453
475
317
273
346
453
83

725
883
794
864
1,049
642
848
877
36

304
720
343
512
444
458
336
421
128

99
256
284
339
205
262
248
215
131

276
132
191
283
197
-3
268
213
115

1974—Jan ...................
Feb..................
M ar.................
A pr..................

917
671
617
1,153

59
-5
-6 0
47

469
307
337
551

17
86
116
135

372
283
224
420

461
364
231
368

275
233
45
296

88
169
149
270

93
-9 5
192
219

N ote .—M onthly estimates are seasonally adjusted and include adjust­
ments for differences in trading days. A nnual totals are based on data
not seasonally adjusted.
Estimates are based on accounting records and often include finance
charges. Renewals and refinancing o f loans, purchases and sales o f in­




stalment paper, and certain other transactions may increase the am ount
o f extensions and repayments w ithout affecting the am ount outstanding.
F or back figures and description of the data, see “ Consumer Credit,”
Section 16 (New) of Supplement to Banking and M onetary S tatistics, 1965,
and B u lletins for Dec. 1968 and Oct. 1972.

A 50

INDUSTRIAL PRODUCTION: S.A. a JU N E 1974
MARKET GROUPINGS
(1967 = 100)

Grouping

Total index.
Products, to ta l..................
Final products ................
Consumer goods.
E quipm ent.................
Interm ediate products.
M aterials............................

1967
p ro ­
por­
tion

1973
aver­
age p

1973
May

June

July

100.0 125.6 124.8 125.6 126.7

1974

Aug.

Sept.

Oct.

126.5

126.8 127.0

Nov.

Dec.

Jan.

127.5

126.5

125.4

F e b .r M a r.r Apr.® May
124.6

124.5

124.9

125.4

62.21 123.4 122.9 123.7 124.2 123.7 124.3 124.3 125.3 124.0 122.9 122.4 122.0 122.5 123.4
12 1.3

120.

1 2 1 .3

122.1

1 2 1 .4

28.53
20.42
13.26
37.79

131.7
106.7
131.1
129.3

131.8
105.7
130.5
128.3

131.9
106.6
132.0
129.0

132.8
107.3
132.5
130.9

131.2 132.3 132.6 133.5 131.3 129.2 128.3 127.9
107.6 108.5 108.9 110.1 110.1 109.8 109.9 110.0
132.1 131.0 130.6 131.1 129.1 129.2 129.1 127.6
130.9 131.3 131.1 131.5 130.7 129.7 128.3 128.4

7 .8 6

13 9 .0

1 4 1.5

1 4 1 .8

142 .4

1 3 4 .0

4 8 .9 5

1 2 2 .4

1 2 2 .7

1 2 3 .7

1 2 2 .6

1 2 1 .2

1 2 0 .6

1 2 0 .4

1 2 1 .0

1 2 2 .0

128.6 129.5
110.4 111.6
127.9 128.1
128.9 128.9

Consumer goods
1 3 8 .2

1 3 7 .3

1 3 8 .5

1 3 4 .6

Durable consumer goods ...................
Automotive products...................
A utos..........................................
Auto parts and allied go o d s..

2.84 136.8 142.6 142.6 141.7 121.1 129.8 131.4 133.7 120.6 108.0
1.87 125.4 129.8 132.6 134.0 103.9 118.4 122.5 124.8 106.2 90.0
.97 158.9 167.0 161.9 156.7 154.2 151.8 148.4 150.9 147.
142.6

H ome go o d s................................
Appliances, TV, and radios.
Appliances and A / C . . .
TV and home a u d io .. . .
Carpeting and furniture. . . .
Misc. home g o o d s.................

5.02
1.41
.92
.49
1.08
2.53

Nondurable consumer goods ..............
C lothing............................................
Consumer staples...........................
Consumer foods and tobacco..
Nonfood staples............................
Consumer chemical products.
Consumer paper p ro d u c ts.. . .
Consumer fuel and lighting. .
Residential utilities..............

2 0 .6 7

140.3 140.9 141.3 142.9 141.1
144.8 148.0 147.2 147.8 146.3
156.9 157.8 154.1 156.0 153.3
150.0 147.8 148.9
133.6 134.0 134.7
12 9 .0

1 2 8 .0

128.1

155.4 154.2
134.7 132.9
129.1

4.32 116.0 114.2 116.0 116.5
16.34 132.4 131.7 131.4 132.5
8.37 122.2 120.9 119.6 121.3

1 3 0 .2

1 2 8 .2

1 2 6 .4

1 2 8 .0

1 3 0 .9

106.6
86.4
145.5

107.8
86.3
149.1

114.5 117.8
97.7 100.3
146.7 151.5

142.9 140.9 141.2 142.5 139.6
149.4 143.4 140.4 147.9 138.4
159.8 159.3 154.7 172.2 153.9

137.5
131.9
148.2

139.4 140.3 141.9
135.8 134.2 134.2
150.0 147.7 147.7

153.3 153.9
134.8 134.1

152.7
136.8

150.1 153.5
136.3 134.4

153.3
134.2

154.5
135.0

158.7
136.0

161.5
137.7

1 3 0 .8

1 3 1 .5

1 3 0 .2

1 2 9 .1

1 30.1

117.0 118.0 116.8
133.6 133.2 134.5
121.9 122.2 123

1 2 9 .5

117.3 120.3 116.3
135.2 132.
133.0
126.5 125.0 126.9

1 3 3 .1

1 2 7 .9

1 2 7 .7

1 2 8 .2

114.5 112.0
133.0 132.1
125.9 124.0

132.6
124.3

133.3
124.6

7.98 143.1 143.1
2.64 153.3 154.9
1.91 121.3 121.7
3.43 147.5 145.6
2.25 156.8 152.1

143.7
153.5
121.7
148.2
155.4

144.1
153.0
122.5
149.2
157.8

145.8
155.6
124.1
150.4
160.0

144.8
153.4
124.4
149.7
160.9

146
156.2
122.5
151.9
161.9

144.3
154.9
123.6
147.8
158.0

141.1
156.7
120.5
140.7
149.8

139.4
157.8
119.4
136.7
145.6

140.4 140.5
159.0 159.0
119.9 119.1
137.4 138.3
148.6 148.6

141.1
159.6
119.4
139.1
147.7

142.5

1 2 1.3

1 2 2 .5

123 .0

1 2 4 .6

119.8 120.5
119.1 119.6
113.1 113.9
138.3 138.5

122
123.0
115.1
141.0

1 2 5 .8

1 2 6 .2

127.

1 2 6 .9

1 2 6 .8

1 2 7 .3

1 2 8 .0

1 2 8 .6

126.6
130.3
120.6
138.7

127.8
133.0
121.3
139.1

1 2 9 .6

129.0
137.3
122.3
138.8

130.8
138.0
123.8
141.8

128.2 128.2
140
139
108.2
109
126.0 126.1

128.2
140.5
106
131.8

128.4
138.5
110.4

Equipment
Business equipment.........................
Industrial equipm ent...............
Building and mining eq u ip .,
Manufacturing equipm ent.,
Power equipm ent.................

12 .74

6.77 120.1
1.45 120.4
3.85 113.0
1.47 138.5

119.1
118.8
112.0
138.2

Commercial, transit, farm eq..
Commercial e q u ip m en t.. . .
Transit equipm ent...............
Farm equipm ent...................

5.97
3.30
2.00
.67

125.5
135.0
109.8
125.1

127.0 127.7 128.1
123.7 125.4 125.
131.6 134.1 135.9 137.0 138.2 140.1
108.4 109.6 109.8
109.0
109.8 109.7
126.5 129.3 126.4 132.8 129.4 123.5

7 .6 8

8 0 .2

7 9 .7

8 0 .1

81.1

5.15

80.3

80.1

80.0

81.1

Defense and space equipment.
Military products.................

122

79.7
79.0

125.6 124.9 125.3
124.1 124
123.7 124.7 126.0 126.0 128
117.3 117.3 118.2 118.5 119.3
142.3 143.0 144.6 140.3 138.0
130.3
141.3
111.4
132.4

7 9 .8

8 0 .0

8 0 .9

79.1

79.3

80.0

134.5 135.3 134.9 134.3
132.7 129.6 128.1 127.5

131 .7

129
139.3
111.1
133.4
81

128.5
139.8
109.5
129.2
8 1 .4

8 0 .9

8 0 .0

8 0 .3

80.6

8 1 .6

80.2

79.0

79.5

80.6

133.7
129.0

131.1 133.0
127.4 126.3

131.3
127.4

129.0 129.5
126
126.5

129.5

1 3 2 .7

81.3

Interm ediate products
Construction products...........
Misc. intermediate products.

5.93 134.2 132.2 135.9
7.34 128.6 129.2 128.9

M aterials
Durable goods materials . . . .
Consumer durable p a rts .
Equipment p arts..............
Durable materials n e c ...

20.91

Nondurable goods materials .............
Textile, paper, and chem. m a t..
Nondurable materials n.e.c.......
Fuel and power, industrial............

13 .9 9

4.75
5.41
10.75
8.58
5.41
2.89

130.1

1 2 8 .6

129.1

1 2 8 .9

1 2 9 .2

131

1 3 2 .3

1 3 2 .2

1 3 3 .0

1 3 0 .3

130.1

1 3 0 .7

127.8 125.7 128.8 126.9 128.6 129.9 128.2
119.3 118.0 118.2 124.5 122.3 122.1 122.7
136.5 135.3 134.9 137.6 138.0 138.7 139.0
1 2 9 .4

130 .4

1 3 0 .6

139.8 139.4 140.2 142.2 142.4
112.2 112.3 112.3 112.1 111.7
123.9 122.9 125.3 126.9 126.3

128.4
125.
138.7

129.8 1 2 7 .3 1 2 6 .6 1 2 8 .0 1 2 8 .3
121.0 113.0 109.3 110.3 114.2 114.7
125.3 123.9 122.6 120.6 120.6 122.6
141.6 140.0 137.6 137.6 137.8 137.2

1 2 9 .2

131.1

141.9 141.4
112.0 112.3
128.3 126.9

142.4
112.1
124.9

131.3 129.8
139.8 141.2

130.2
142.3

132.4 128.8
141.0 148.4

4 5 2 .6

4 5 6 .9

4 4 9 .1

140.1 143.4
111.9 111.7
123.1 121.5

1 31.1

1 3 1 .6

1 3 1 .6

1 3 0 .8

141.7
114.3
122.5

142.6 143.4
113.8 112.9
122.4 122.8

126.9
144.3

126.7
151.4

125.8
148.6

126.6

4 4 5 .4 4 4 2 .5

4 4 1 .4

4 4 4 .3

4 4 7 .8

142.5
112.6
123.6

Supplementary groups
H ome goods and clothing.
C ontainers.............................

9.34 129.0 128.6 129.7 130.7 130.0
1.82 139.9 138.0 141.4 135.1 140.5

Gross value of products
in market structure
(In billions of 1963 dollars)
Products , total....................
Final pro d u cts.............
Consumer goods
Equipm ent................
Intermediate products.
For N ote see p. A-51.




28 6 .3

449

221.4 346.1
156.3 239.7
65.3 106.4
64.9 103.7

4 4 9 .7

346.6
241.1
105.6
103.1

4 5 1 .8

4 5 2 .9

4 4 6 .2

347.8 347.7 341.9
241.3 241.0 235.4
106.6 106.6 106.6
104.3 104.8 104.6

4 4 9 .8

346.3
239.0
107.3
103.5

349.7 353.3 346
241.7 243.6 237.8
108.0 109.5 109.0
103.1 103.6 102.5

342.5 339.9 340.2 343.3 346.5
233.6 230.6 231.2 233.7 235.9
108.9 109.1 109.0 109.4 110.7
130.1 102.0 101.2 101.1 101.5

JU N E 1974 □ INDUSTRIAL PROD U CTION: S.A.

A 51

INDUSTRY GROUPINGS
(1967 = 100)

Grouping

D urab le.................................................
N ondurable..........................................
Mining and utilities................................

1967
p ro ­
p or­
tion

1973
aver­
age *

8 8 .5 5

12 5 .2

1974

1973
Sept.

Oct.

Nov.

Dec.

Jan.

F e b .r M ar.r Apr.* May

12 6 .3

1 2 6 .4

1 2 7 .4

1 2 6 .4

125.3

1 2 4 .5

1 2 4 .5

124

123.1
131.2
126.9
110.4
147.6

121.1
131.4
125.4
109.9
144.9

119.4
131.5
126.9
111.7
146.1

120.2
130.9
127.4
112.5
146.3

120.5 121.9
131.0 131.1
126.
126.7
111.7 111.6
146.0 145.6

1 3 1 .0

130.5

1 3 0.4

May

June

July

Aug.

12 4 .9

1 2 5 .6

1 2 6 .5

126.1

123.8
130.5
130.4
111.0
154.8

122.6
130.9
130.7
111.5
154.8

123.3
130.7
131.3
111.8
155.8

123.5 124.3
130.4 131.3
131.5 130.6
111.9 111.3
156.2 154.6

130.6

129.5

129.5

1 3 0 .6

52.33 122.1 121.8 123.0
36.22 129.6 129.3 129.3
11.45 128.9 127.0 128.2
6.37 110.2 109.1 109.5
5.08 152.3 149.5 151.5

1 2 5 .7

Durable manufactures
1 2 .5 5

Primary m etals....................................
Iron and steel, subtotal.................
Fabricated metal products...............

6.61
4.23
5.94
3 2 .4 4

M achinery............................................
N onelectrical m achinery...............
Electrical m achinery......................
Transportation equipm ent...............
M otor vehicles and p a rts.............
Aerospace and misc. trans. e q ...
Ordnance, private and G ovt............
Lum ber , clay , and gla ss .........................

Lum ber and p ro d u cts.......................
Clay, glass, and stone products----Furniture and fixtures.......................
Miscellaneous m anufactures............

1 2 8.8

1 1 7 .3

17.39 125.9
9.17 125.1
8.22 126.8
9.29 109.2
4.56 138.1
4.73
81.4
2.07 138.4
3.69 85.4
4 .4 4

128.1

1 2 8 .7

127.1 126.1 124.5 128.1 125.6 M l . 8 128.7
121.6 119.8 119.9 120.9 118.5 122.7 123.6
130.7 130.3 133.4 133.5 133.8 131.5 132.4

1 2 9.5

1 1 7 .3

1 1 8.8

124.7
124.0
125.4
111.0
140.9
82.2
138.9
85.4

126.9
126.1
127.8
112.2
143.3
82.2
140.2
86.7

13 0 .3

129.2

6 .9 0
2 .6 9
3 .3 3

1 1 4 .7

11 3 .8

1 1 4 .5

115.1

1 2 9 .3
M l.3

128.6 127.2 128.0 127.9 129.2
129.4 128
129.0 130.1 131.7
127.7 126.2 126.
125.6 126.4
95.7 93.9
94.7 97.3 99.9
112.7 109.2 109.7 116.5 118.9
79.3
78.9
80.3
79.3
81.7
143.0 142.
142.9 144.4 144.7
85.2 84.2
83.
84.0
85.2

1 2 9 .8

1 2 9 .2

1 2 7 .8

1 3 5 .9

1 3 7 .5

126.5 127.5
143.6 143.5

129.5
144.9

11 3 .3 1 1 5 .0
M l . 2 129.2

11 4 .5

1 1 5 .4

12 2 .8

123.8

13 5.4

1 1 9 .9

1 2 8 .8

1 1 5.2

1 1 8 .9

12 8 .8

1 2 9 .7
M IA

1 3 5 .2

126.5
144.5

124.4 126.0
116.5 117.3
131.7 132.0

118 .6

118 .9

2 .9 0

1 3 6.0

1 2 7 .7

126.1
119.6
131.5

130.0 129.2 130.4 130.9
128.9 130.0 130.0 130.3 130.2
128.2 129.8 128.5 130.5 131.6
105.7 107.3 108.8 109.8 103.0
131.0 133.9 136.4 137.8 124.6
81.3
82.9
82.2
81.7 82.3
140.9 141.5 141.0 142.6 142.7
83.8
83.7 83.8
84.3
86.1

128.9 127.5 126.6 125.4 128.4 128.9
129.9 132.0 130.5 132.3 129.6 128.8
126.3
143.3

1 2 8 .6

130.7 129.5 125.0
127.7 125.5 119.4
130.0 131.4 130.6

127.1
128.0
112.1
144.1
81.3
140.8
86.7

1 1 9 .3 1 1 7 .7
M l . 6 128.5

1.65
2.79
1.38
1.52

1 2 7 .6

128.9
124.2
133.1

1 3 8 .2

131.2
136.1

130.4 128.8
145.3 142.9

130.4

1 2 9.7

1 2 7 .4

1 28.1

1 2 9 .0

126.3 126.1
128.7 131.8

127.1
127.6

126.1
129.3

127.0
130.1

1 3 3 .4

13 5 .2

124.9 124.2
144.5 141.8

1 3 6 .8

125.4
144.2

1 3 6 .2

144.3

126.
145.

127.1
144.3

1 1 6 .7

1 1 8 .8

1 1 6.2

1 1 5 .3

1 1 3 .2

11 1 .7

127.6
113
83.7

125.0
111.5
83.0

123.4

1 3 6 .4
M l.9

1 3 5 .3

11 6 .9

1 2 9 .4

1 3 6 .4

Nondurable manufactures
Textile mill p ro d u cts.........................
Apparel p ro d u cts................................
Leather and p ro d u cts........................
Paper and p ro d u c ts ..........................
Chemicals, petroleum , and rubber . . . .

Chemicals and p ro d u cts...................
Petroleum p ro d u c ts...........................
Foods and tobacco ..................................

.88

127.1
112.9
83.6

7 .9 2

122.1

1 2 2 .0

3.18 135.4 135.1 134.6
4.74 113.2 113.2 114.8
11 .9 2
7 .8 6

14 9 .3

9 .4 8

12 1 .9

117.5

1 1 6 .8

128.9 129.0 130.2 130.2
110.0 111.0 112.1 113.6 115.4 114.9
83.0 86.6 79.2 81.0 86.4 83.1

15 0 .2

1 4 9 .8

1 24.5

122.1

121 .3

135.3 137.0 134.8 135.3
116.0 116.2 113.6 112.1
151.8

1 5 1 .0

1 5 0 .9

151.1

150.1 150.2 150.4 152.0 151.4 153.0 152.7
1.80 127.4 128.5 129.7 129.3 128.2 126.0 130.4
2.26 164.0 166.8 163.9 168.8 167.9 163.6 161.9
12 1 .5

1 1 9.5

8.81 122.7 122.4 120.3
.67 111.6 111.2 108.1

121 .3

1 2 2 .0

122.4 122.9
105.3 110.1

1 2 2 .2

1 2 1 .7

123.2 122.4
109.1 113.7

1 1 1 .6

129.4
115.3
82.9

130.9 128.4
118.5 116.4
82.9 77.6

1 2 1 .9

1 21.2

121.7

1 2 2 .2

1 2 2 .5

122.1

136.2
112.3

136.7 138.7
110.8 110.4

137.6
111.9

140.2
110.7

140.3
109.9

111.1

1 5 1 .6

151.6

151.5

15 1 .2

1 5 1 .3

1 5 2 .8

153.0 154.5 154.9
129.5 125.5 120.5
164.5 162.3 164

1 5 3 .3

155.3
116.9
163.5

155
117.3
164.0

155.9
124.5
165.0

156.3
125.2

1 2 4 .7

1 2 3 .0

12 5 .4

125.4 124.5 126.3
115.8 104.2 113.3

84.2
1 2 1 .5

1 2 6 .2 125.1 124.
125.1
M l . 2 126.2 126.0 126.3

112.1

110.4

1 1 9 .9

1 1 9 .7

132.2
111.6

132.9
110.7

Mining
M etal m ining.......................................
Stone and earth m inerals.................
C o al....................... . .............................

111. 8 1 16.9

1 .2 6

118.1

1 1 6 .2

.51
.75

130.8
109.5

127.0 121.6
108.8 105.2

5 .1 1

1 0 8.3

.69
4.42

1 2 0 .6

1 2 0 .4

1 2 0 .9

128.4 131.4 136.6 138.3
109.1 113.1 109.5 109.2

121.4

1 2 1 .3

1 2 2 .0

135.2
111.7

135.2 135.2
113.1 111.9

1 1 7 .7

1 1 7 .3

128.1
110.7

107.3 1 0 8.9 109.5 1 0 9 .2 1 0 9 .5 1 0 9 .7 1 0 8 .8 1 07.5 107.0 10 9 .6 11 0 .7 1 1 0 .2 1 1 0 .0
103.6 100.9 108.0 109.0 104.0 109.8 103.0 104.1 110.4 108.7 112.7 114.7 110.3 113.5
109.0' 108.4 109.1 109.5 110.0 109.7 110.8 109.6i 107.0 106.8 1 09.1 110. 1 110.2 109.5

Utilities
G as.............................................................

3.91 160.7
1.17 124.2

156.8

159.7

164.0> 163.8

N ote .—D ata for the complete year of 1972 are available in a pamphlet

Industrial Production Indexes 1972 from Publications Services, Division

o f Administrative Services, Board of Governors o f the Federal Reserve
System, Washington, D.C. 20551.




165.1

165.3

163.4

155.6 153.0

154.6

154.

1
Published groupings include series and subtotals not shown sepa­
rately. Figures for individual series and subtotals are published in the
monthly Business Indexes release.

Indexes without seasonal adjustment are no longer being published in the Bulletin ,
but they are available in the Board‘s monthly release ’’Industrial Production (the
G.12.3), which is available upon request to Publications Services, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.

A 52

BUSINESS A C TIV ITY; CO NSTRU CTIO N a JU N E 1974
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Industrial production

M anu­
facturing 2
In­
dustry

Ca­
pacity
utiliza­
tion
in mfg.
M anu­ (1967
factur­ output
= 100)
ing

M arket
Period

Products

Total

Final
Inter­ M ate­
mediate rials
Con­
sumer Equip­
goods ment

Total
Total

C on­
struc­
tion
con­
tracts

N onag­
ricul­
tural
em­
ploy­
ment—
Total i

Em­
ploy­
ment

Pay­
rolls

Prices «

Total
retail
sales3

C on­
sumer

W hole­
sale
com ­
m odity

1955..
1956..
1957..
1958..
1959..

58.5
61.1
61.9
57.9
64.8

56.6
59.7
61.1
58.6
64.4

54.9
58.2
59.9
57.1
62.7

59.5
61.7
63.2
62.6
68.7

48.9
53.7
55.9
5 0.0
54.9

62.6
65.3
65.3
63.9
70.5

61.5
63.1
63.1
56.8
65.5

58.2
60.5
61.2
56.9
64.1

90.0
88.2
84.5
75.1
81.4

76.9
79.6
80.3
78.0
81.0

92.9
93.9
92.2
83.9
88.1

61.1
64.6
65.4
60.3
67.8

59
61
64
64
69

80.2
81.4
84.3
86.6
87.3

87.8
90.7
93.3
9 4 .6
94.8

1960..
1961..
1962..
1963..
1964..

66.2
66.7
7 2.2
76.5
81.7

66.2
66.9
72.1
76.2
81.2

64.8
65.3
70.8
74.9
79.6

71.3
72.8
77.7
8 2.0
86.8

56.4
55.6
61.9
65.6
70.1

71.0
72.4
76.9
81.1
87.3

66.4
66.4
72.4
77.0
82.6

65.4
65.6
71.4
75.8
81.2

80.1
77.6
81.4
83.0
85.5

86.1
89.4

82.4
82.1
84.4
86.1
88.6

88.0
84.5
87.3
87.8
89.3

68.8
68.0
73.3
76.0
80.1

70
70
75
79
83

88.7
89.6
9 0 .6
91.7
92.9

94 .9
94.5
94.8
94.5
94.7

1965.
1966.
1967.
1968.
1969.

89.2
97.9
100.0
105.7
110.7

78.7 9 3.0
9 3.0 9 9.2
100.0 100.0
104.7 105.7
106.1 112.0

9 1.0
9 9.8
100.0
105.7
112.4

89.1
98.3
100.0
105.7
110.5

89.0
91.9
87.9
87.7
86.5

93.2
94.8
100.0
113.2
123.7

92.3
97.1
100.0
103.1
106.7

93.9
99.9
100.0
101.4
103.2

88.1
97.8
100.0
108.3
116.6

91
97
100
109
114

94.5
97.2
100.0
104.2
109.8

96.6
99.8
100.0
102.5
106.5

1970...
1971..
1972..
1973*.

106.6 106.0 104.5
106.8 106.4 104.7
115.2 113.8 111.9
125.6 123.4 121.3

110.3
115.7
123.6
131.7

96.3
89.4
95.5
106.7

111.7
112.6
121.1
131.1

107.7
107.4
117.4
129.3

105.2
105.2
114.0
125.2

78.3 123.1
75.0 145.4
'7 8 .6 165.3
83.0 183.3

107.2
107.3
110.5
114.8

98.0
93.9
96.7
101.9

114.1
116.3
130.2
146.9

120
122
142

116.3
121.2
125.3
133.1

110.4
113.9
119.8
134.7

1973— M a r..
A p r...
M a y ..
Ju n e ..
Ju ly ..
A ug..
S ept..
O c t...
N o v ..
D ec...

123.7
124.1
124.
125.
126.7
126.5
126.8
127.0
127.5
126

121.7
122.0
122.9
123.7
124.2
123
124.3
124.3
125.3
124.0

119.6
120.0
120.8
121.3
122.1
121.4
122.4
122.7
123.7
122.6

130.8
130.9
131.8
131.9
132.8
131
132.3
132.6
133.5
131.3

104.1
104.7
105.7
106.6
107.3
107.6
108.5
108.9
110.1
110.1

129.4
129.3
130.5
132.0
132.5
132.1
131.0
130.6
131.1
129.1

127.0
127.7
128.3
129.0
130.9
130.9
131.3
131.1
131.5
130.7

123.4
123.8
124.9
125.6
126.5
126.1
126.3
126.4
127.4
126.4

582.8

193.0
177.0
173.0
183.0
175.0
83.3 199.0
182.0
191.0
82.6 194.0
161.0

113.8
114.0
114.4
114.7
114.6
115.0
115.3
116.0
116.4
116.4

101.0
101.5
101.7
102.1
101.8
102.1
102.1
102.9
103.3
103.2

142.6
144.8
144.9
145.3
146.3
146.7
149.8
151.7
155.8
153.7

160
157
159
157
163
162
163
164
164
161

129.8
129.8
130.7 *130.5
131.5 '1 3 3 .2
132.4 '1 3 6 .0
132.7 '1 3 4 .3
135.1 '142.1
135.5 '1 3 9 .7
136.6 '1 3 8 .7
137.6 '1 3 9 .2
138.5 '1 4 1 .8

1974— J a n ...
Feb...
M a r..
Apr..
May.

125.4
124.6
'124.5
'124.9
125.4

122.9 121.2 129.2 109.
'1 2 2 .4 '120.6 128.3 '109.9
'1 2 2 .0 '120.4 r127.9 '110.0
'122.5 121.0 r128.6 r110.4
122.0 129.5 111.6
123

129.2
'129.1
'1 27.6
'127.9
128.1

129.7
128.3
'128.4
'128.9
128.9

125.3
'124.5
'124.5
'124.8
125.7

155.0
187.0
181.0
179.0

116.2
116.6
116.6
116.8
117.1

102.6
101.8
101.5
'101.9
101.9

151.6
151.1
'150.5
'147.2
154.4

164 139.7
165 141.5
168 '143.1
168 144.0
170

86.8 9 3.0
88.1
96.8 96.1
98.6
100.0 100.0 100.0
105.8 105.8 106.6
109.7 109.0 111.1

1 Employees only: excludes personnel in the Armed Forces.
2 Production workers only.

3 F.R . index based on Census Bureau figures.
* Prices are not seasonally adjusted. Latest figure is final.
5 Figure is for first quarter 1973.
N o te .— A ll series: D ata are seasonally adjusted unless otherwise noted.
C apacity utilization : Based on data from Federal Reserve, M cGrawHill Economics D epartment, and Dept, o f Commerce.

'83.3

'8 0 .5

'1 4 6 .6
'1 4 9 .5
'1 5 1 .4
'15 2 .7
'1 5 5 .0

Construction con tracts; M cGraw-Hill Informations Systems Com pany
F.W. Dodge Division, monthly index o f dollar value o f total construction
contracts, including residential, nonresidential, and heavy engineering;
does not include data for A laska and Hawaii.
E mployment and payro lls: Based on Bureau o f Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
P rices: Bureau of Labor Statistics data.

CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions of dollars, except as noted)
1973

1972
Type o f ownership and
type o f construction

1972

1974

1973
Dec.

Apr.

May

June

July

Aug.

Sept.

Oct.

N ov.

Dec.

Jan.

Feb.

M ar.

Total construction 1...........................

90,979 101,071 6,423 8,814 9,428 9,910 9,228 10,303 8,151 8,983 7,905 6,133 5,954 6,610 7,911

By type o f ownership:
Public............................................
Private 1.......................................

24,043 26,686 1,629 2,071 2,359 2,995 2,581 2,968 2,328 2,055 2,140 1,855 2,135 2,212 2,481
66,936 73,385 4,793 6,743 7,069 6,916 6,647 7,335 5,822 6,928 5,765 4,277 3,819 4,398 5,430

By type of construction:
Residential building 1...............
Nonresidential building............
N onbuilding...............................

44,975 46,246 3,115 4,512 4,754 4,612 4,224 4,233 3,638 3,673 3,299 2,341 2,231 2,678 3,374
27,021 31,761 2,189 2,634 2,629 2,976 2,991 3,241 2,719 2,758 2,655 2,210 2,307 2,260 2,752
18,983 22,064 1,119 1,668 2,045 2,322 2,013 2,828 1,794 2,552 1,951 1,581 1,415 1,672 1,785

Private housing units au th o rized ...
(In thousands, S.A., A.R.)

2,219

1,796 2,399

1,939

1,838 2,030

1 Because o f improved procedures for collecting data for 1-family homes,
some totals are not strictly comparable with those prior to 1968. To im­
prove comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.
N ote.— Dollar

value of construction contracts as reported by the




1,780

1,750

1,596

1,316

1,314

1,237

1,301

1,333 '1,461

McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals o f monthly data exceed annual totals because adjustments—
negative—are made in accumulated monthly data after original figures
have been published.
Private housing units authorized are Census Bureau series for 14,000
reporting areas with local building permit systems; 1971 data are for
13,000 reporting areas.

JU N E 1974 o CONSTRU CTION

A 53

VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions of dollars)
Private

Public

Nonresidential
Period

Total
Total

Buildings

Resi­
dential

Total
Indus­
trial

Com­
mercial

Other
build­
ings 1

Other

Total

Mili­
tary

High­
way

Conser­
vation
and
Other 2
develop­
ment

1962 3 .........
1963 4 .........
1964

59,965
64,563
67,413

42,096
45,206
47,030

25,150
27,874
28,010

16,946
17,332
19,020

2,842
2,906
3,565

5,144
4,995
5,396

3,631
3,745
3,994

5,329
5,686
6,065

17,869
19,357
20,383

1,266
1,179
910

6,365
7,084
7,133

1,523
1,694
1,750

8,715
9,400
10,590

1965
1966
1967
1968
1969

73,412
76,002
77,503
86,626
93,368

51,350
51,995
51,967
59,021
65,404

27,934
25,715
25,568
30,565
33,200

23,416
26,280
26,399
28,456
32,204

5,118
6,679
6,131
6,021
6,783

6,739
6,879
6,982
7,761
9,401

4,735
5,037
4,993
4.382
4,971

6,824
7,685
8,293
10,292
11,049

22,062
24,007
25,536
27,605
27,964

830
727
695
808
879

7,550
8,405
8,591
9,321
9,250

2,019
2,194
2,124
1,973
1,783

11,663
12,681
14,126
15,503
16,052

94,167
109,238
123,836
135,079

66,071
79,367
93,640
102,568

31,864
43,268
54,186
57,720

34,207
36,099
39,454
44,848

6,538
5,423
4,676
6,058

9,754
11,619
13,462
15,569

5,125
5,437
5,898
6,131

12,790
13,620
13,418
17,090

28,096
29,871
30,196
32,511

718
901
1,080
1,162

9,981
10,658
10,448

1,908
2,095
2,172
1,924

15,489
16,217
16,496

1973—A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
O c t...
N ov..
Dec..

133,858
134,177
133.680
136;524
136.370
136,208
135,871
134,831
133.370

101,298
101,878
102,708
105,029
105,318
103,034
102,388
101,922
99,611

58,111
57,490
58,083
59,007
59,233
58.505
56,458
54,667
52,728

43,187
44,338
44,625
46,022
46,085
44,529
45,930
47.255
46,883

5,287
5,338
5,928
6,340
6,687
6,324
6,573
6,742
7,057

15,473
16,118
15,704
16,110
15,800
15,111
15,561
16,139
15,685

6,282
6,251
6.383
6,492
6,122
5,742
5,883
6,035
6,089

16,145
16,631
16,610
17,080
17,476
17,352
17,913
18,339
18,052

32,560
32,349
30,972
31,495
31,052
33,174
33,483
32,909
33,759

1,158
1,277
1,162
1,341
1,048
962
1,032
1,040
1,128

9,901
9,645
10,094
10,762
10,391
11,210

2,062
2,569
2,235
1,977
2,196
2,296
2,330

19,439
18,858
17,481
17,415
17,417
18,706

1974—J a n ...
F e b .r ,
M a r..
Apr.P

133,981
136,996
134,844
136,248

98,592
99,209
98,737
99,650

50,413
49,953
49,975
49,792

48,179
49.256
48,762
49,858

6,899
7,951
7,459
7,486

16,323
16,551
16,271
17,161

6,199
6,153
6,271
6,453

18.758
18,601
18,761
18.758

35,389
37,787
36,107
36,598

1,282
1,381
1,393
1,467

197
197
197
197

0
1
2
3

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 .)
Region

M obile
home
ship­
ments
(N.S.A.

Governmentunderwritten
(N.S.A.)

Private and tmblic
(N.S.A.)

Period
Type o f structure

Total
N orth­ N orth
Central South
east

West

1family

5- or
2- to 4- morefamily family

Total

Private Public

Total

FH A

VA

1963.
1964.

1,603
1,529

261
254

328
340

591
578

430
357

1,012
970

108

450

1,635
1,561

1,603
1,529

32
32

292
264

221
205

71
59

151
191

1965.
1966.
1967.
1968.
i
1969.

1,473
1,165
1,292
1,508
1,467

270
206
215
227
206

362
288
337
369
349

575
472
520
618
588

266
198
220
294
324

964
778
844
900
814

87
61
72
81
85

422
325
376
527
571

1,510
1,196
1,322
1,546
1,500

1,473
1,165
1,292
1,508
1,467

37
31
30
38
33

246
195
232
283
284

197
158
180
227
233

49
37
53
56
51

216
217
240
318
413

>............................
1970.
1971.
>
1972.
1............................
1973.

1,434
2,052
2,357
2,045

218
264
330
277

294
434
443
440

612
869
1,057
897

310
486
527
428

813
1,151
1,309
1,132

85
120
141
118

536
781
906
795

1,469
2,084
2,379
2,057

1,434
2,052
2,357
2,045

35
32
22
12

482
621
475
247

421
528
371
161

61
93
104
86

401
497
576
>•567

!—A pr................. 2,153
M ay ............... 2,330
J u n e ............... 2,152
July................. 2,152
A ug................ 2,030
Sept................ 1,844
Oct.................. 1,674
N ov................ 1,675
D ec................. 1,403

293
294
345
245
255
281
242
241
192

397
531
485
475
466
431
383
322
278

908
983
873
1,020
844
748
715
750
654

555
522
449
412
465
384
334
362
279

1,231
1,243
1,140
1,232
1,108
990
957
938
767

127
159
127
144
107
97
81
84
73

795
929
886
776
814
757
637
653
563

205
234
203
203
200
149
149
135
91

205
234
203
203
197
148
147
133
90

1
1
3
1
2
1

26
28
25
20
23
15
15
17
11

17
18
17
12
14
10
9
12
7

9
11
8
8
9
6
6
5
4

r60
r56
r56
r49
r52
r44
r45
r39
'28

1,464
1,922
1,484
1,626

258
337
196
195

330
386
332
331

650
871
624
745

226
328
332
355

793
1,056
963
983

89
84
88
89

582
782
433
554

86
110
126
161

85
109
124
159

13
12
14
13

9
8
8
6

4
4
6
7

29
30
37

!•—Jan..................
F e b r ...............
M ar................
A p r.* .............

N ote .—Starts are Census Bureau series (including farm starts) except
for G ovt.-underwritten, which are from Federal Housing Admin, and
Veterans Admin, and represent units started, including rehabilitation
FRASER

Digitized for


5!89

2
2
1

units under FH A , based on field office reports o f first compliance inspec­
tions. D ata may not add to totals because o f rounding.
Mobile home shipments are as reported by Mobile Homes M anufac­
turers Assn.

A 54

EMPLOYMENT □ JU N E 1974
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands o f persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)

Period

N ot in
labor force
(N.S.A.)

Total
labor
force
(S.A.)

U nem­
ployed

Unemploy­
ment
rate2
(per cent;
S.A.)

Em ployed1
Total
Total

In nonagricultural
industries

In
agriculture

1968.............................
1969.............................
1970.............................
1971.............................
1972.............................
1973.............................

135,562
137,841
140,182
142,596
145,775
148,263

53,291
53,602
54,280
55,666
56,785
57,222

82,272
84,240
85,903
86,929
88,991
91,040

78,737
80,734
82,715
84,113
86,542
88,714

75,920
77,902
78,627
79,120
81,702
84,409

72,103
74,296
75,165
75,732
78,230
80,957

3,817
3,606
3,462
3,387
3,472
3,452

2,817
2,832
4,088
4,993
4,840
4,304

3.6
3.5
4.9
5 .9
5.6
4.9

1973—M ay.................
Ju n e.................
Ju ly .................
Aug..................
Sept.................
O ct...................
N ov.................
D ec..................

147,940
148,147
148,361
148,565
148,782
149,001
149,208
149,436

58,050
55,417
55,133
56,129
57,484
56,955
57,040
57,453

90,597
91,133
91,139
91,011
91,664
92,038
92,186
92,315

88,263
88,818
88,828
88,704
89,373
89,749
89,903
90,033

83,950
84,518
84,621
84,513
85,133
85,649
85,649
85,669

80,630
81,088
81,109
81,088
81,757
82,194
82,088
82,026

3,320
3,430
3,512
3,425
3,376
3,455
3,561
3,643

4,313
4,300
4,207
4,191
4,240
4,100
4,254
4,364

4.9
4.8
4 .7
4.7
4.7
4 .6
4 .7
4 .8

1974—Jan ...................
Feb..................
M ar.................
A pr..................
M ay................

149,656
149,857
150,066
150,283
150,507

58,303
58,165
58,183
58,547
58,349

92,801
92,814
92,747
92,556
92,909

90,543
90,556
90,496
90,313
90,679

85,811
85,803
85,863
85,775
85.971

82,017
81,951
82,164
82,264
82,514

3,794
3,852
3,699
3,511
3,457

4,732
4,753
4,633
4,538
4,708

5.2
5.2
5. 1
5.0
5.2

1 Includes self-employed, unpaid family, and domestic service workers.
2 Per cent o f civilian labor force.
N ote .— Bureau o f Labor Statistics. Information relating to persons 16

to the calendar week that contains the 12th day; annual data are averages
o f m onthly figures. D escription o f changes in series beginning 1967 is
available from Bureau o f Labor Statistics.

years o f age and over is obtained on a sample basis. M onthly data relate

EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands of persons)
Contract
construc­
tion

Period

Total

M anufac­
turing

1968...............................................................

67,915
70,284
70,593
70,645
72,764
75,567

19,781
20,167
19,349
18,529
18,933
19,820

606
619
623
602
607
625

3,285
3,435
3,381
3,411
3,521
3,648

1973—A pr...................................................
M ay..................................................
June..................................................
Ju ly ..................................................
Aug...................................................
Sept...................................................
O ct....................................................
N ov...................................................

75,105
75,321
75,526
75,493
75,747
75,961
76,363
76,679
76,626

19,727
19,782
19,856
19,804
19,861
19,882
20,016
20,095
20,090

608
608
629
631
634
633
639
644
646

1974—Jan....................................................
Feb....................................................
M ar...................................................
A pr.p................................................
M ayp................................................

76,526
76,813
76,804
76,928
77,110

20,006
19,904
19,851
19,911
19,924

1973—A pr...................................................
M ay..................................................
June..................................................
Ju ly ..................................................
Aug...................................................
Sept...................................................
O ct....................................................
N ov...................................................
Dec....................................................

74,861
75,404
76,308
75,384
75,686
76,238
76,914
77,322
77,391

1974—Jan ....................................................
Feb....................................................
M ar...................................................
A pr.2*................................................
May**................................................

75,620
75,792
76,117
76,695
77,199

1971...............................................................
1972...............................................................
1973...............................................................

Transporta­
tion & pub­
lic utilities

Trade

Finance

Service

Govern­
ment

4,310
4,429
4,493
4,442
4,495
4,611

14,084
14,639
14,914
15,142
15,683
16,288

3,382
3,564
3,688
3,796
3,927
4,053

10,623
11,229
11,612
11,869
12,309
12,866

11,845
12,202
12,535
12,856
13,290
13,657

3,571
3,620
3,654
3,680
3,676
3,700
3,694
3,711
3,732

4,591
4,593
4,597
4,598
4,617
4,629
4,671
4,654
4,644

16,217
16,256
16,262
16,294
16,352
16,388
16,465
16,520
16,398

4,031
4,044
4,049
4,048
4,064
4,078
4,088
4,095
4,101

12,746
12,776
12,820
12,828
12,906
12,995
13,044
13,122
13,128

13,614
13,642
13,659
13,610
13,637
13,656
13,746
13,838
13,887

654
656
655
657
660

3,636
3,757
3,725
3,656
3,640

4,684
4,691
4,676
4,663
4,667

16,417
16,472
16,487
16,542
16,581

4,109
4,124
4,127
4,135
4,151

13,136
13,215
13,240
13,260
13,325

13,884
13,994
14,043
14,104
14,162

19,586
19,667
20,002
19,729
20,018
20,132
20,168
20,202
20,110

603
608
642
644
648
641
640
643
642

3,442
3,616
3,837
3,934
3,981
3,944
3,923
3,822
3,639

4,559
4,593
4,661
4,653
4,659
4,671
4,680
4,659
4,644

16,088
16,200
16,335
16,262
16,279
16,367
16,515
16,780
17,113

4,019
4,040
4,089
4,113
4,121
4,082
4,076
4,079
4,080

12,771
12,865
12,999
12,982
13,009
12,982
13,057
13,096
13,062

13,793
13,815
13,743
13,067
12,971
13,419
13,855
14,041
14,101

19,818
19,738
19,726
19,768
19,807

642
641
642
651
660

3,280
3,329
3,405
3,524
3,636

4,618
4,616
4.634
4,630
4.667
'

16,290
16,127
16,187
16,422
16,522

4,072
4,087
4,102
4,123
4,147

12,913
13,056
13,147
13,287
13,418

13,987
14,198
14,274
14,290
14,342

Mining

seasonally adjusted

NOT SEASONALLY ADJUSTED

N o t e .—B ureau of L abor Statistics; data include all full- and p arttime employees who w orked during, o r received pay for, the pay period th at includes the 12th of the m onth. Proprietors, self-employed




persons, dom estic servants, unpaid fam ily workers, and m em bers of
A rm ed Forces are excluded.
Beginning w ith 1970, series has been adjusted to M ar. 1971 bench­
mark.

JU N E 1974 □ PRICES

A 55

CONSUMER PRICES
(1967 = 100)
Health and recreation

Housing

Period

All
items

Food
Total

Rent

Homeownership

Fuel
oil
and
coal

Gas
and
elec­
tricity

86.3
92.7

40.5
48.0
89.2
9 4.6

81.4
79.6
98.6
99.4

1929 .....................
1933
1941 ..........................
1945 ........................
1960............................
1965............................

51.3
38 8
44.1
53 9
88.7
94.5

48 3
30 6
38.4
50.7
88.0
9 4.4

53.7
59.1
90 .2
94.9

1966............................
1967............................
1968............................
1969............................

97.2
100.0
104.2
109.8

99.1
100.0
103.6
108.9

9 7.2
100.0
104.2
110.8

98 .2 96.3
100.0 100.0
102.4 105.7
105.7 116.0

9 7 .0
100.0
103.1
105.6

1970............................
1971............................
1972............................
1973............................

116.3
121.3
125.3
133.1

114.9
118.4
123.5
141.4

118.9
124.3
129.2
135.0

110.1 128.5
115.2 133.7
119.2 140.1
124.2 146.7

1973—A pr................. 130.7
M a y ............... 131.5
J u n e ............... 132.4
July................ 132.7
Aug................. 135.1
Sept................ 135.5
Oct.................. 136.6
N ov................. 137.6
D ec................. 138.5

136.5
137.9
139.8
140.9
149.4
148.3
148.4
150.0
151.3

132.8
133.3
133.9
134.2
135.2
136.6
138.1
139.4
r 140.6

123.0
123.5
123.9
124.3
125.0
125.4
125.9
126.3
126.9

139.7
141.5
143.1
144.0

153.7
157.6
159.1
158.6

142.2
143.4
144.9
146.0

1974—Jan..................
F eb.................
M ar................
A p r.................

76.0
54.1
57.2
58.8
91.7
96.9

F ur­ Apparel Trans­
and
nish­
p orta­
upkeep
tion
ings
and
opera­
tion

Total

M ed­
ical
care

Per­
sonal
care

Read­
ing
and
recrea­
tion

Other
goods
and
serv­
ices

93.8
95.3

48.5
36.9
44.8
61.5
89.6
93.7

44.2
47.8
89.6
95.9

85.1
93.4

37.0
42.1
79.1
89.5

41.2
55.1
90.1
95.2

47.7
62.4
87.3
95.9

49.2
56.9
87.8
94.2

99.6
100.0
100.9
102.8

97.0
100.0
104.4
109.0

96.1
100.0
105.4
111.5

97.2
100.0
103.2
107.2

96.1
100.0
105.0
110.3

9 3.4
100.0
106.1
113.4

97.1
100.0
104.2
109.3

97.5
100.0
104.7
108.7

97.2
100.0
104.6
109.1

110.1
117.5
118.5
136.0

107.3
114.7
120.5
126.4

113.4
118.1
121.0
124.9

116.1
119.8
122.3
126.8

112.7
118.6
119.9
123.8

116.2
122.2
126.1
130.2

120.6
128.4
132.5
137.7

113.2
116.8
119.8
125.2

113.4
119.3
122.8
125.9

116.0
120.9
125.5
129.0

143.6
144.2
145.0
145.2
147.0
149.2
151.5
152.6
153.6

128.3
129.3
131.6
131.7
132.8
133.6
141.1
155.6
172.8

125.5
125.7
125.4
125.5
125.8
126.5
127.4
129.8
131.0

123.6
123.9
124.7
125.0
125.3
126.1
126.7
127.5
128.0

125.8
126.7
126.8
125.8
126.5
128.3
129.6
130.5
130.5

122.6
123.5
124.6
124.8
124.5
123.9
125.0
125.8
126.7

129.2
129.6
130.0
130.3
130.5
131.1
132.1
132.6
133.0

136.2
136.6
137.0
137.3
137.6
138.3
140.6
140.9
141.4

123.8
124.4
124.9
125.3
125.7
126.3
127.3
128.1
129.2

125.2
125.6
125.9
126.2
126.1
126.8
127.2
127.5
127.6

128.2
128.5
129.0
129.5
129.4
129.9
130.3
130.8
131.3

127.3 154.8
128.0 155.8
128.4 157.2
128.8 158.2

194.6
202.0
201.5
206.5

134.3
137.3
140.0
142.0

129.0
130.1
132.6
134.0

128.8
130.4
132.2
133.6

128.1
129.3
132.0
134.4

133.7
134.5
135.4
136.3

142.2
143.4
144.8
145.6

129.8
130.8
131.8
133.1

128.3
128.9
129.5
130.4

131.8
132.3
132.8
133.6

N o te .—Bureau o f Labor Statistics index for city wage-earners and
clerical workers.

WHOLESALE PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities

Period

I9 6 0 ................................
1965................................

Pro­
All
Farm cessed
com ­ prod­
foods
m odi­ ucts
and
tie s1
feeds Total i

94.9
96.6

97.2
98.7

89.5
95.5

95.3
96.4

1966................................ 99.8 105.9 101.2 98.5
1967................................ 100.0 100.0 100.0 100.0
1968................................ 102.5 102.5 102.2 102.5
1969................................ 106.5 109.1 107.3 106.0

Tex­
tiles,
etc.

R ub­
Hides, Fuel, Chem­
ber,
etc.
e tc .1 icals,
etc.
etc.

99.5
99.8

90.8
94.3

96.1
95.5

101.8 103.1
99.0 95.9

M a­
N on- Trans­
me- porta­ Mis­
Lum ­ Paper, M et­ chin­
ery Furni­
ber,
als,
ture,
tallic
tion cella­
and
etc.
etc. equip­
etc.
etc.
min­ equip­ neous
erals
m
ent2
ment
95.3
95.9

98.1
96.2

92.4
96.4

92.0
93.9

99.0
96.9

97.2
97.5

93.0
95.9

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
103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7
106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8

97.7
100.0
102.2
105.2

111.4 107.5 113.3 104.5 109.9
115.5 109.9 122.4 110.3 112.8
117.9 111.4 126.1 113.8 114.6
121.7 115.2 130.2 115.1 119.7

1970................................
1971................................
1972................................
1973...............................

110.4 111.0 112.0 110.0 107.2
113.9 112.9 114.3 114.0 108.6
119.1 125.0 120.8 117.9 113.6
134.7 176.3 148.1 125.9 123.8

110.1
114.0
131.3
143.1

105.9
114.2
118.6
134.3

102.2 108.6 113.7 108.2 116.7
104.2 109.2 127.0 110.1 119.0
104.2 109.3 144.3 113.4 123.5
110.0 112.4 177.2 122.1 132.8

1973--M a r....................
A pr.....................
M ay ...................
Ju n e ...................
July.....................
Aug.....................
Sept....................
O c t.....................
N ov....................
D ec.....................

129.8
130.5
133.2
136.0
134.3
142.1
139.7
138.7
139.2
141.8

160.9
160.6
170.4
182.3
173.3
213.3
200.4
188.4
184.0
187.2

141.4
139.8
145.0
151.8
146.5
166.2
156.3
153.1
151.9
155.7

143.5
145.0
142.2
140.9
141.4
143.0
143.8
143.8
143.0
141.9

127.4
129.2
131.1
133.4
134.7
135.2
137.4
139.3
144.1
151.5

106.7
107.7
109.3
110.4
110.8
111.0
111.5
112.7
113.5
115.6

110.3
110.6
111.5
112.6
112.9
113.1
112.8
114.0
114.8
116.5

173.2
182.0
186.9
183.1
177.8
178.8
181.9
180.3
184.7
186.1

118.3
119.8
120.7
122.0
122.3
123.3
124.4
125.8
127.6
128.7

129.2
130.5
131.7
132.5
132.8
133.7
134.4
135.9
138.5
141.8

120.0
120.8
121.5
121.9
122.0
122.3
122.6
123.1
123.8
124.6

113.5
114.1
115.1
115.2
115.2
115.9
116.0
116.6
117.2
117.5

129.0
130.0
130.5
131.1
130.0
130.0
129.9
130.9
131.5
132.6

114.5
114.9
115.1
115.0
115.0
115.1
114.5
115.9
116.1
117.3

117.9
118.6
119.5
120.2
120.9
121.0
121.1
121.0
121.3
121.6

1974—Jan......................
Feb.....................
M ar....................
A pr.....................
M ay ...................

146.6
149.5
151.4
152.7
155.0

202.6
205.6
197.0
186.2
180.8

162.1 135.3
164.7 138.2
163.0 142.4
159.1 146.6
158.9 150.5

133.8 142.6 162.5
135.2 143.4 177.4
136.1 143.4 189.0
137.5 145.4 197.9
139.1 146.3 204.3

118.2
120.2
127.3
132.3
137.0

117.7
119.8
123.8
129.4
133.7

183.7
184.1
191.3
200.2
198.0

131.8
132.9
137.2
114.4
146.6

145.0
148.0
154.7
161.2
168.7

126.0 119.0
127.0 120.2
129.0 121.3
130.8 122.9
134.1 124.5

138.7
142.1
144.2
146.7
150.7

118.6
118.9
119.1
119.4
121.4

123.5
124.6
125.8
128.2
133.2

122.8
124.2
125.3
126.0
126.1
126.7
127.4
128.5
130.1
132.2

1 Beginning 1973 this series has been revised.




119.0
120.8
112.3
123.7
124.2
125.2
126.8
128.5
130.0
131.4

2 Dec. 1968=100.

A 56

N A TIO NAL PRODUCT AND INCOME □ JU N E 1974
GROSS NATIONAL PRODUCT
(In billions o f dollars)
1
Item

1929

1933

1950

1941

1969

1970

1971

1972

1973

1973
I

Gross national product........................................

103.1
1 0 1.4

Personal consumption expenditures...................

Structures..................................................
Residential structures............. ....................
Change in business inventories....................

Exports...............................................................
Government purchases of goods and services..
N ational defense....................... ..................
O th er........ ................................... ..................

Gross national product in constant (1958)
dollars.............................................. ..................

77.2
9 .2
37.7
30.3

III

5 7 .2 120.1 2 7 8 .0 9 2 2 .5 9 7 2 .6 1,049.4 1,149.1 1,281.1 1,287.8 1,267.5 1 ,2 9 9 .8 1 ,3 1 9 .4 1 ,3 4 6 .7

45.8
3.5
22.3
20.1

80.6 191.0 579.5 617.6
9 .6 30.5 90.8 91.3
42.9 98.1 245.9 263.8
28.1 62.4 242.7 262.6

1 .4

17.9

1 4 .5
1 0 .6

3 .0
2 .4
.9

1 3 .4
9 .5
2 .9

5 .0
5.6
1.5
.6
4 .0
3.8
.5
1.7 —1.6
1.8 - 1 . 4

6 .6
3.9
3 .7
4 .5
4 .0

667.2
103.6
278.7
284.9

726.5 804.0 779.4 795.6
117.4 130.8 132.2 132.8
299.9 335.9 322.2 330.3
309.2 337.3 325.0 332.6

54.1 139.0 136.3 153.2 178.3 202.1

194.5 198.2

1 9 4 .2
1 3 6 .2

1 8 9 .9 1 9 3 .7
1 3 0 .9 1 34.1

4 7 .3 1 31.1 1 3 1 .7 147.1 1 7 2 .3
2 7 .9 9 8 .5 1 0 0 .6 1 0 4 .4 1 1 8 .2
9 .2
34.2 36.1 37.9 41.7

18.7
19.4
18.6
6.8
6 .0

64.3
32.6
32.0
7.8
7.7

1.8
13.8
12.0

1.9
3.6
55.5 62.9
53.6 ! 59.3

64.4
31.2
30.7
4.5
4.3

76.5
54.0
53.5
6.0
5.6

48.4
87.8
58.0
57.4
8 .0
7.3

.8 - 4 . 6
66.3 73.5
65.5 78.1

5.8
102.0
96.2

66.5
42.7
42.2
6.1
4.5

279.0 285.6

297.8

1 0 6 .8 1 0 6 .8
7 4 .2 73.0

112 .1

24.8

37.9 210.0 219.5 234.3 255.0 277.1 268.6 275.3

1 6 .9

1 8 .4

6 .0

13.8
3.1
7 .9

49.5' 51.7
88 .6 90.1
59.2! 54.0
58.6! 53.4
4 . 7j 18.0
3.2 17.3

1 0 5 .5 1 0 7 .3
74.3 7 4 .2

31.2 33.1
163.0 168.0

i
1
203.6 141.5 263.7 355.3 725.6j 722.5 745.4 790.7 837.4 829.3 834.3

N ote .— Dept, o f Commerce estimates. Q uarterly data are seasonally
adjusted totals at annual rates. F or back data and explanation o f series,

1 9 3 .4
1 4 4 .1

10.9
130.4
119.4

8.0

1 0 6 .6

198.9

1 9 7 .3\ 1 9 5 .9
138.0, 1 4 1 .8

7.6 12.8
104.5 116.4
97.0 103.6

2 .0

9 8 .1 1 0 4 .4

202.0 213.9

2.8
97.2
94.4

1 .3

9 6 .2

844.6
125.0
362.3
357.3

.0
89.7
89.7

8 .5

9 8 .8

825.2
125.6
349.6
350.0

47.2
86.9
59.6
59.1
4 .5
4.4

1 .3
5.9
4 .6

14.1 78.4 74.6 71.6 7 4 .4
73.9
4.3 20.4 21.6 26.5 30.1
32.7
19.5 111.2 123.3 136.2 150.5 170.5

816.0,
132.8
341.6
341.6

45.3
85.5
59.0
58.4
4 .6
4 .4

.4
2 .4
2 .0

7 .2

Ip

IV

55.6 124.5 284.8 930.3 977.1 1,055.5 1,155.2 1,289.1 1,242.5 1,272.0 1,304.51337.5 1 ,352.2

16.2

1.1
7 .0
5.9

II

1974

53.9
90.2
49.3
48 .6
5.5
5 .0

32.7 33.8
172.2 178.8

76. 3
35 8
185*. 7

841.3 844.6

831.0

see the Survey o f Current Business, (generally the July issue) and the Aug.
1966 Supplement to the Survey.

NATIONAL INCOME
(In billions of dollars)

1929

1933

1941

1950

1969

1970

1971

1972

1973

1973

1974

Item
I
86.8

II

III

IV

Ip

40.3 104.2 241.1 766.0 800.5 859.4 941.8 1,053.9 1,015.0 1,038.2 1,067.4 1,095.1 1,104.8

51.1

29.5

64.8 154.6 566.0 603.9 644.1 707.1 785.2 757.4 774.9 794.0 814.7 826.8

5 0 .4

2 9 .0

6 2 .1

G overnment civilian....................................

45.5
.3
4 .6

23.9
.3
4.9

51.9
1.9
8.3

Supplements to wages and sa la ries.. . . . -----

.7

.5

2 .7

7 .8

5 6 .3

6 1 .9

7 0 .3

.1
.4

2 .0
.7

4 .0
3.8

27.8
28.4

2 9 .7

O ther labor income......................................

.1
.6

32.2

33.7
36.6

Proprietors’ income...............................................
Business and professional..............................
F arm ....................................................................

15.1
9 .0
6 .2

5 .9
3.3
2 .6

17.5
11.1
6 .4

37.5
2 4.0
13.5

67.2
50.5
16.7

66.9
50.0
16.9

Rental income of persons....................................

5 .4

2 .0

3 .5

9 .4

22.6

Corporate profits and inventory valuation
adjustment..........................................................

10.5

-1 .2

15.2

37.7

Profits before t a x .............................................

1 0 .0

1 .0

1 7 .7

4 2 .6

1.4

.5

7 .6

17.8

40.1

Profits after ta x ............................................

8 .6

.4

2 4 .9

4 4 .8

Dividends...................................................
U ndistributed profits..............................

5.8
2.8

2 .0
-1 .6

10.1
4 .4

5 .7

8.8
16.0

24.3
20.5

.5

- 2 .1

- 2 .5

-5 .0

-5 .1

4 .7

4 .1

3 .2

2.0

30.5

36.5

42.0

Compensation of employees................................
Private.............................................................

Employer contributions for social in-

1 4 6 .8 5 0 9 .7 5 4 2 .0

5 7 3 .8 6 2 7 .3 6 9 1 .4 6 6 6 .7 6 8 2 .3 6 9 9 .3 717.2 7 2 6 .2
124.4 405.6 426.9 4 4 9 .7 493.3 546.0 525.1 538.7 553.2 566.9 5 7 3 .3
5.0 19.0 19.6 19.4 20.3 20.8 20.9 20.5 20.4 21.3 2 1.2
17.4 85.1
95.5 104.7 113.8 124.6 120.7 123.1 125.7 129.1 131.7

N ote . —Dept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N ote to table above.




9 3 .9

9 0 .8

9 2 .6

9 4 .7

97.5 1 0 0 .6

39.0
40.7

4 9 .0
4 4 .9

47.4
43.3

48.3
44.2

4 9 .4

45.3

50.8
46.7

52.7
47.9

68.7
51.9
16.8

74.2
54.0
20.2

84.2
57.5
26.8

80.6
56.3
24.3

81.5
57.1
24.4

85.0
57.9
27.1

89.8
58.5
31.3

8 8.4
59.3
29.1

23.9

24.5

24.1

25.1

24.7

24.6

25.3

25.7

25.8

79.8

69.2

80.1

91.1 109.0 104.3 107.9 112.0 111.9 108.9

8 4 .9

7 4 .0

85 .1

9 8 .0 12 6 .3 1 1 9 .6

34.8

37.4

42.7

55.8

52.7

3 9 .3
2 4 .7

4 7 .6

5 5 .4

7 0 .4

6 6 .9

14.6

25.1
22.5

26.0
29.3

27.8
42.6

26.9
40.0

- 4 .8

- 4 .9

7 9 .7

128.9

129.0
57.6
71.5
27.3
28.1
44.2 43.4
57.4
7 1 .6

127.4 140.1

55.7

59.8

7 1 .6

8 0 .2

29.0
42.6

29.5
50.7

- 6 . 9 - 1 7 .3 - 1 5 . 4 - 2 1 .1 - 1 7 . 0 - 1 5 .5 - 3 1 . 2
45.2

50.4

47.9

49.4

51.1

53.0

55.0

JU N E 1974 o NATIONAL PRODUCT AND INCOME

A 57

RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions o f dollars)

1929

Item

1933

1941

1950

1969

1970

1971

1972

1973

1973
I

III

I

IV

55.6 124.5 284.8 930.3 977.1 1,055.5 1,155.2 1,289.1 1,242.5 1,373.0 1,304.5 1,337.5 1,352.5

Gross national product........................................

103.1

L ess: Capital consumption allowances..........

7.9

7 .0

8.2

Indirect business tax and nontax lia­
bility .......................................................
Business transfer paym ents...................
Statistical discrepancy.............................

7 .0
.6
.7

7.1
.7
.6

11.3
.5
.4

Plus: Subsidies less current surplus o f gov-

.1

-.1
86.8

II

1974

18.3

81.6

93.8 102.4 110.0

106.9 109.0 110.5

113.5

115.1

23.3 85.9 93.5 102.4 109.5 117.8
.8
3.8
4 .0
4.3
4.6
4.9
1.5 - 6 . 1 - 6 . 4 - 3 . 4 - 1 . 5
2.9

115.6 117.2 118.5
4.8
4.9
5.0
3.2
3.7
1.1

119.9
5.1
3.7

121.1
5.2
3.1

-.2

-2 .9

.2

1.0

87.3

1.7

1.2

1.7

.4

.9

.4

.6

40.3 104.2 241.1 766.0 800.5 859.4 941.8 1,053.9 1,015.0 1,038.3 1,067.4 1,095.1 1,104.8

L ess: Corporate profits and inventory valu­

ation adjustm ent..................................
Contributions for social insurance----Excess o f wage accruals over disburse­
m ents......................................................

10.5 - 1 . 2
.2
.3

15.2
2.8

37.7
6.9

79.8
54.2

69.2
57.7

80.1
64.6

91.1 109.0
73.7 92.1
-. 1

.0

.6

Plus: G overnment transfer paym ents............

.9

1.5

2 .6

14.3

61.9

88.9

Net interest paid by government and
consum ers..............................................
D ividends...................................................
Business transfer paym ents...................

75.1

98.3 112.6

2.5
5.8
.6

1.6
2 .0
.7

2 .2
4 .4
.5

7.2
8.8
.8

28.7
24.3
3.8

31.0
24.7
4.0

31.0
25.1
4.3

32.7
26.0
4 .6

85.9

47.0

2 .6

1.5

Equals: Disposable personal income.................

83.3

L ess: Personal o u tlay s.......................................

79.1
77.2
1.5

L ess: Personal tax and nontax payments

Personal consumption expenditures.
Consum er interest paym ents.............
Personal transfer payments to for­
eigners.................................................
Equals: Personal saving......................................
Disposable personal income in constant (1958)
dollars..................................................................

—.5

37.1
27.8
4.9

96.0 227.6 750.9 808.3 863.5 939.2 1,035.4

104.3 107.9 112.0
89.3 90.9 93.0
.0

—.3

111.9
95.0

108.9
99.9

.0

.0

.0

108.8 110.8 113.7

116.9

122.3

39.7
29.0
5.1

41.4
29.5
5.2

34.7
26.9
4.8

36.1
27.3
4.9

38.0
28.1
5.0

996.6 1,019.0 1,047.1 1,078.9 1,094.4

20.7 116.5 | 116.6 117.5 142.2 152.9

145.1 149.3 156.0

161.1

163.0

45.5

92.7 206.9 634.4 691.7 746.0 797.0 882.5

851.5 869.7 891.1

917.8

931.4

46.5
45.8
.5

81.7 193.9 596.2 635.5 685.8 747.2 827.8
80.6 191.0 ( 579.5 617.6 667.2! 726.5 804.0
2 .4 S 15.8 16.8 17.7 19.7 22.5
.9

801.5 818.7 840.1
779.4 795.6 816.0
21.2 22.0 23.0

850.8 ! 869.8
825.2 844.6
23.8 | 24.4

3.3

.3

.2

.2

.5

.9

1.0

1.0|

1.0

xJ.2

.9

1.0

1.1

1.8

.9

4 .2

-.9

11.0

13.1

38.2

56.2

60.2

49.7

54.8

50.0

51.0

51.1

67.1

61.5

150.6 112.2 190.3 249.6 513.6 534.8 554.91 577.9 608.0 )
i

1
613.2 J 603.4

603.9 j 604.8 609.5

N ote . —Dept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N ote to table at top o f opposite
page.

PERSONAL INCOME
(In billions of dollars)

Item

1972

1974

1973

1973
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov

Dec.

Jan.

Feb.

M ar.

A pr.p

Total personal income............................

939.2 1,035.41,011.6 1,018.7 1,036.6 1,035.6 1,047.3 1,058.5 1,068.5 1,079.4 1,089.0 1,087.0 1,094.8 1,101.4 1,108.4

W age and salary disbursements...........
C om m odity-producing industries. .
M anufacturing o n ly ........................
D istributive industries.......................
Service industries................................
G overnm ent.........................................

627.8 691.5 677.6 682.0 688.2 693.2 698.9 706.0 711.2 717.8 722.6 721.8 726.5 730.2 734.5
226.0 251.9 245.9 248.3 251.7 253.4 254.8 257.8 259.5 262.5 264.1 261.0 263.0 263.7 264.8
1 7 5.9

1 9 6 .8 1 9 2 .9

151.5
116.1
134.2

165.1 162.2
129.0 126.4
145.4 143.1

1 9 4 .7

1 9 7 .0

1 9 7 .9

163.2 164.5
126.8 127.7
143.7 144.4

165.3
129.4
145.1

1 9 8 .7

2 0 0 .8

2 0 3 .0

2 0 2 .5

2 0 4 .6

2 0 5 .1

167.1 168.7 169.6
130.8 132.5 132.9
146.2 147.0 149.2

170.8
134.1
150.4

171.3
135.9
151.3

171.8
136.8
152.2

2 0 3 .5 2 0 3 .9

2 0 5 .2

172.2 173.7 174.9
138.3 139.2 140.4
152.9 153.7 154.4

O ther labor incom e................................

40.7

44.9

43.9

44.2

44.5

44.8

45.3

45.8

46.2

46.7

47.1

47.5

47.9

48.3

48.8

Proprietors* incom e................................
Business and professional.................
F a rm ......................................................

74.2
54.0
20.2

84.2
57.5
26.8

81.0
56.8
24.2

81.5
57.1
24.4

81.9
57.3
24.6

83.7
57.8
25.9

85.1
58.0
27.1

86.4
58.1
28.3

88.4
58.5
29.9

90.3
58.7
31.6

91.0
58.6
32.4

88.2
58.6
29.6

88.4
59.3
29.1

88.5
59.9
28.6

85.1
59.9
25.2

R ental incom e.........................................

24.1

25.1

24.3

24.6

24.9

25.0

25.3

25.5

25.6

25.7

25.7

25.8

25.8

25.8

25.0

D ividends.................................................

26.0

27.8

27.3

27.3

27.4

27.6

28.2

28.3

28.5

28.7

29.8

29.5

29.4

29.6

29.9

78.0

87.5

86.5

87.8

89.0

90.3

91.5

92.6

94.0

95.3

96.3

119.0 120.2

121.1

121.9

44.0

44.3

Personal interest income.......................
Transfer paym ents..................................

84.5

85.7

103.0 117.5 115.3

115.9

42.4

42.5

116.0 116.9

123.0 125.9

L e ss: Personal contributions for social

insurance..........................................
Nonagricultural income..........................
Agricultural income................................

34.7

43.1

42.8

43.6

43.9

44.3

47.0

98.7
133.9

47.4

47.5

47.2

911.5 1,000.5 979.5 986.4 994.2 1,001.8 1,013.1 1,031.8 1,030.0 1,039 0 1,047.5 1,048.1 1,056.4 1,063.3 1,073.5
38.9 3 8 .4| 38.1 34.9
27.7 34.9 32.0 32.2 32.4 33.8 35.2 36.7 38.6 40.4 41.5

N ote .—Dept, o f Commerce estimates. Monthly data are seasonally
adjusted totals at annual rates. See also N ote to table at top o f opposite
page.




43.4

97.5

127.6 128.9

A 58

FLOW OF FUNDS □ JU N E 1974
SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual ra te s; in billions of dollars)
1971
Transaction category, or sector

1968

1969

1970

1971

1972

1972

1973

1973
HI

H2

HI

H2

HI

H2

Funds raised, by type and sector
1 Total funds raised by nonfinancial sectors..................
2 E x c lu d in g e q u i t i e s .....................................................

94.6
95.9

91.4
88.0

3
4
5

U.S. Government............................................................
Public debt securities..................................................
Budget agency issues..................................................

13.4
10.3
3.1

-3 .6
-1 .3
-2 .4

6
7
8

All other nonfinancial sectors........................................
Corporate equities.......................................................
D e b t i n s t r u m e n t s ..................................................

81.2
-1 .4
82.6

9
10
11
12
13
14
15
16
17
18
19
20
21

D ebt capital instrum ents...........................................
State and local government securities.................
Corporate and foreign b o n d s ..............................
M ortgages........................... .....................................
Other residential ...................................................
Com m ercial ...........................................................
F arm ......................................................................

97.5 146.7 166.1
92.6 135.0 156.1
12.8
12.9
-.1

25.5
26.0
-.5

17.3
13.9
3.4

187.0 134.7 158.7 145.2 187.3 198.0 175.4
181.3 123.8 146.1 134.7 177.8 192.3 169.6
9.7
7.7
2.0

22.7
24.2
-1 .6

28.4
27.8
.5

2.5
-.3
2.8

3
4
5

95.0
3.4
91.6

84.7 121.2 148.8 177.3 112.0 130.4 132.8 165.1 181.0 172.9
4.9
11.7
10.0
5.7
10.9
12.6
10.4
5.7
5.8
9.5
79.8 109.5 138.8 171.6 101.1 117.8 122.3 155.6 175.3 167.1

6
7
8

50.6
9.5
14.0
27.1

50.6
9 .9
13.0
27.7

57.7
11.3
20.6
25.7

83.2
16.6
19.7
46.8

92.4
11.9
13.2
67.3

94.7
10.1
11.6
73.0

79.5
17.9
22.3
39.3

86.9
15.4
17.2
54.3

87.3
12.0
14.4
60.9

97.6
11.9
12.0
73.7

91.7
6.5
10.6
74.6

97.7
13.6
12.7
71.4

1 5 .1
3 .4
6 .4
2 .2

1 5 .7
4 .7
5 .3
1 .9

1 2 .8
5 .8
5 .3
1 .8

3 9 .7
1 0 .3
1 4 .8
2 .6

4 2 .6
9 .5
1 6 .5
4 .4

2 0 .6
8 .5
8 .5
1 .7

3 1 .5
9 .1
1 1 .5
2 .3

3 5 .6
9 .1
1 3 .5
2 .7

4 3 .7
1 1 .5
1 6 .0
2 .5

4 3 .5
1 0 .8
16.1
4 .3

41.0
15.3
10.4
3.3
12.0

22.1
6 .4
6 .0
3.8
5.9

26.3
9.3
11.2
-.9
6.6

46.4
21.8
19.2
-1 .6
7 .0

76.9
41.7
22.9
2.5
9.8

21.7
5.1
8.9
- 1 .0
8.7

30.9
13.5
13.6
-.8
4 .6

35.0
14.5
15.8
-.3
5.0

58.0
29.3
22.5
-2 .8
9.0

83.6
54.2
24.7
-3 .4
8 .2

4 1 .8
8 .2
1 6 .9
4 .5

Open-market p a p er................................................
O th er..........................................................................

32.0
13.1
10.0
1.6
7 .2

2 6 .0
8 .8
1 0 .0
2 .0

22
23
24
25
26
27
28
29
30

By borrowing sector....................................................
D e b t i n s t r u m e n t s ...................................................
Foreign......................................................................
State and local governments................................
Households...............................................................
Nonfinancial business............................................

81.2
82.6
2.9
9 .8
29.6
40.2

95.0
91.6
2.9
10.7
32.2
45.9

Nonfarm noncorporate ........................................
C orporate ..............................................................

2 .8
5 .6
3 1 .8

3 .2
7 .4
3 5 .4

84.7 121.2 148.8 177.3 112.0 130.4 132.8 165.1 181.0 172.9
79.8 109.5 138.8 171.6 101.1 117.8 122.3 155.6 175.3 167.1
5.3
3.0
5.7
3.8
3.4
7.1
6.1
4.3
11.1
3.1
11.4
17.0 12.3
10.5
16.1
11.9
6.4
17.9
12.7
14.6
38.3 63.2 74.1
30.0 46.6
56.2 70.5 73.5 74.0
22.9
42.5 48.5
59.5
79.9 47.9 49.0 50.9 68.2 84.4 75.4
4 .0
4 .2
3 .2
4 .1
4 .9
4 .4
8 .6
5 .3
7.5
9 .8

31
32
33

C o r p o r a te e q u i t i e s ..................................................

- 1 .4
.2
-1 .5

Other private credit....................................................

Foreign......................................................................

38
39

Nonfinancial business............................................
C orporate.............................................................
M emo: U.S. Govt, cash balance...........................
Totals net o f changes in U.S. Govt, cash balances
Total funds raised ...........................................................
By U.S. G overnm ent................................................

22.2
17.2
4 .9

17.0
15.8
1.2

69.5
29.2
20.4
8.4
11.5

9
10
11
12
13
14
15
16
17
18
19
20
21

5 .3
3 3 .9

8 .7
3 5 .7

1 0 .4
4 4 .2

1 1 .4
5 9 .9

9 .3
3 4 .6

8 .1
3 6 .8

9 .5
3 7 .0

1 1 .6
5 1 .2

1 2 .0
6 4 .8

1 0 .8
5 4 .9

22
23
24
25
26
27
28
29
30

3 .4
.5
2.9

4.9
.1
4.8

11.7
*
11.7

10.0
-.4
10.4

5.7
-.2
5.9

10.9
.4
10.5

12.6
- .3
12.9

10.4
-.2
10.7

9.5
—. 6
10.1

5.7
-.4
6.1

5.8
*
5.7

31
32
33

3.1
38.7
30.3
-1 .1

3.3
48.8
38.3
.4

3.0
47.3
38.8
2.8

5 .7
60.2
47.4
3.2

3.4
69.9
54.6
.5

6.9
85.8
65.8
- 1 .7

5.7
58.4
45.1
-.2

5.8
61.9
49.7
6.6

3.2
61.6
47.7
- 3 .0

3.7
78.3
61.3
4 .0

10.7
90.5
70.9
3.6

3.1
81.2
60.6
-7 .0

34
35
36
37

95.7
14.5

91.0
-4 .0

94.7 143.5
10.0 22.3

165.6
16.8

188.7 134.9
11.4 22.9

152.1
21.7

148.1
15.4

183.3
18.1

194.3
13.3

182.3
9 .4

38
39

Totals including equities
34
35
36
37

12.4
10.5
1.9

1
2

Private domestic net investment and borrowing in credit markets
Total, households and business
1
T o t a l c a p i t a l o u t l a y s *. ..
2
Capital consumption 2.........
3
N et physical investm ent. . . .

207.6 226.7 224.2 252.5 291.1 328.3 246.3 258.7 279.9 302.3 323.8 332.9
140.4 154.3 166.0 179.0 193.4 209.9 175.8 182.2 190.3 196.6 205.6 214.3
76.6 89.7 105.7 118.2 118.6
67.2 72.4 58.2 73.5 97.7 118.4 70.5

1
2
3

4
5

N et funds raised...............
Excess net investment 3..
Total business

68.3
-1 .1

81.0 70.2 98.5 133.1 159.9 88.4 108.5 117.7 148.8 163.9 155.2
- 8 . 6 -1 2 .0 - 2 5 . 0 -3 5 .4 - 4 1 .5 -1 7 .9 - 3 2 . 0 -2 8 .0 - 4 3 .1 -4 5 .7 - 3 6 . 6

4
5

6
7
8

Capital con su m p tio n .. . .
N et physical investm ent.

97.9 108.9 108.0 116.6 133.3 151.3 115.8 117.3 127.4 139.3 145.6 157.0
80.3 87.6 94.5 78.8
63.2 69.5 74.6
81.7
86.2 88.9 92.7 96.3
36.3 45.8
37.0 35.5
34.7
39.4 33.5
41.2 50.4 52.9
60.7
56.

6
7
8

9
10
11

N et debt funds raised . . .
C orporate equity issues..
Excess net investment 3..
Corporate business

48.5
59.5
79.9 47.9 49.0
45.9 42.5
50.9 68.2 84.4 75.4
11.7 10.4
5.9
10.5
2.9
4 .8
5.7
12.9
10.7 10.1
6.1
- 9 . 4 - 1 3 . 8 - 2 3 .9 -2 4 .1 -2 9 .0 - 2 1 . 4 - 2 6 . 4 - 2 0 .4 - 2 7 .9 - 3 7 .5 - 2 0 . 5

9
10
11

12
13
14

Capital consum ption___
N et physical investm ent.

15
16
17
18
19
20
21
22

T o ta l c a p ita l o u tla y s .

T o ta l c a p ita l o u tla y s .

N et debt funds raised
C orporate equity issues..
Excess net investment 3..
Households
T o ta l c a p ita l o u tla y s .
Capital consum ption___
N et physical investm ent.
N et funds raised..........................................................
Excess net investment 3.............................................

40.2
- 1 .5
-4 .0

83.7
49.8
33.9

84.0
53.6
30.4

96.0 105.4 109.8 120.0
69.4
61.8 63
66.5
34.1 41.5 43.3
50.6

12
13
14

31.8
- 1 .5
-.4

35.4
2.9
-4 .4

33.9
35.7 44.2 59.9
54.9
34.6 36.8
37.0 51.2 64.8
4
11.7 10.4
10.5
5.7
5.9
10.7 10.1
6.1
12.9
- 8 . 4 - 1 8 .3 - 1 6 . -1 8 .9 - 1 5 . 3 - 2 1 . 4 -1 3 .5 - 1 9 .8 - 2 7 . 6 - 1 0 . 0

15
16
17

109.7 117.8 116.2 135.9 157.8 177.1 130.4 141.4 152.6 163.0 178.2 175.9
77.2 84.8 91.4 98.7 105.9 115.4 9 7.0 100.4 104.1 107.7 112.9 118.0
33.5 41.0 48.5 55.3 65.3
33.0 24.7 37.2 51.9 61.6
58.0
32.5

18
19
20

29.6
2.9

32.2
.8

1 C apital outlays are totals for residential and nonresidential fixed
capital, net change in inventories, and consumer durables, except outlays
by financial business.
2 Capital consumption includes amounts for consumer durables and
excludes financial business capital consumption.
3 Excess of net investment over net funds raised.
N ote .—Full statements for sectors and transaction types are available
on a quarterly basis and annually for flows and for amounts outstanding.
Requests for these statements should be addressed to the Flow of Funds
Section, Division o f Research and Statistics, Board o f Governors of the
FRASER
Federal Reserve System, Washington, D.C., 20551.

Digitized for


86.7 100.7 114.8
57.7 62.8 67.9
37.
29.1
46.

75.0
45.1
29.9

22.9
1.8

38.3 63.2 74.1
- 1 . 1 - 1 1 .3 - 1 2 .5

86.5
56.7
29.8

87.0
58.7
28.3

30.0 ; 46.6
3.5 - 5 . 6

56.2 70.5
- 7 . 6 -1 5 .2

73.5 74.0
- 8 . 2 - 1 6 .1

21
22

Funds raised by type and sector . Credit flows included here are the
net amounts raised by households, nonfinancial business, governments,
and foreigners. All funds raised by financial sectors are excluded. U.S.
Government budget issues (line 5) are loan participation certificates
issued by CCC, Export-Im port Bank, FN M A , and GNM A, together with
security issues by FHA, Export-Im port Bank, and TV A. Issues by Federally
sponsored credit agencies are excluded as borrowing by financial institu­
tions. Such issues are on p. A-59, line 11. Corporate equity issues are net
cash issues by nonfinancial and foreign corporations. Mortgages exclude
loans in process. Open m arket paper is commercial paper issued by
nonfinancial corporations plus bankers’ acceptances.

JU N E 1974 □ FLOW OF FUNDS

A 59

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions o f dollars)
1971
Transaction category, or sector

1968

1969

1970

1971

1972

HI
1 Total funds advanced in credit markets to
nonfinancial sectors.................................................
By public agencies and foreign
2 Total net advances..........................................................
3
U.S. Government securities......................................
4
Residential mortgages................................................
5
FHLB advances to S&L’s .........................................
6
Other loans and securities.........................................
By agency—
7
U.S. Government........................................................
8
Sponsored credit agencies..........................................
9
M onetary authorities..................................................
10
Foreign..........................................................................
11 Agency borrowing not included in line 1...................
12
13
14
15
16
17
18

Private domestic funds advanced
Total net advances..........................................................
U.S. Government securities......................................
State and local obligations........................................
Corporate and foreign bonds...................................
Residential m ortgages................................................
Other mortgages and loans......................................
Less: FHLB advances................................................

19

P r iv a te f i n a n c i a l i n t e r m e d i a t i o n
C redit m arket funds advanced b y private financial
institutions .................................................................

20
21
22
23

Commercial banking..................................................
Savings institutions.....................................................
Insurance and pension funds....................................
Other finance...............................................................

24
25
26

1972

1973

1973
H2

HI

H2

HI

H2

95.9

88.0

92.6 135.0 156.1

12.2
3 .4
2.8
.9
5.1

15.8
.9
4 .6
4 .0
6.3

28.0
15.7
5.7
1.3
5 .2

41.3
33.4
5.7
- 2 .7
4 .9

16.9
7.3
5.2
*
4.3

34.8
11.0
7.7
7.2
9 .0

38.6
32.9
4 .2
-5 .5
7.1

44.0
34.0
7.1
.2
2.7

19.7
12.7
6.2
-2 .4
3.2

14.1
2 .0
4.3
2.5
5.4

42.9
21.2
4.9
7.8
9.1

26.7
.7
10.5
6.6
8.9

2
3
4
5
6

4.9
3.2
3.7
.3
3.5

2.9
9 .0
4 .2
-.3
8.8

2.8
9.9
5 .0
10.3
8.2

3.2
2.8
8.8
26.4
4.3

2.3
6 .0
.2
8.4
6.2

3.0
20.3
9.2
2.3
19.6

4 .3
- 1 .4
8 .4
27.3
.9

2.2
7 .0
9 .3
25.5
7 .7

1.5
7.5
4.5
6.2
7.4

3.1
4.5
-4 .1
10.6
5.0

1.0
18.7
11.8
11.5
17.6

5.1
21.8
6.7
-6 .9
21.6

7
8
9
10
11

87.2
13.3
9.5
13.8
15.5
35.9
.9

80.9
4 .6
9 .9
12.5
15.7
42.2
4 .0

72.8
5 .4
11.3
20.0
12.8
24.6
1.3

98.0 145.4 166.1
-3 .5
16.3
18.4
16.6
11.9
10.1
13.2
19.5
11.6
44.6 44.3
29.1
33.7 59.5
88.9
*
-2 .7
7.2

86.1
-9 .2
17.9
22.1
24.8
25.0
-5 .5

109.9 122.4 168.6 167.0 164.5
2.1
13.5 23.4
7.1
25.3
15.4
12.0 11.9
6.5
13.6
16.8
14.2
10.3
12.1
12.9
33.4 38.4 50.8 49.2 39.4
42.3 48.3
71.0 95.2 81.8
.2 - 2 . 4
7.8
2 .5
6 .6

12
13
14
15
16
17
18

7 5 .3

5 4 .9

1 5 0 .2

16 1 .4

1 1 2 .2

1 1 0 .6

1 3 0 .5

89.6
35.2
21.4
15.2

53.2
45.4
12.5
1.2

48 .0
37.5
15.7
9 .4

170.1

1 8 4 .8

1 3 8 .0

57.2
48.4
14.1
10.6

82.4
48.9
17.8
21.0

101.3
49.8
19.6
14.1

77.8
20.6
23.2
16.4

19
20
21
22
23

161.4

11 2 .2

1 1 0 .6

130.5

87.9 107.7
30.3
2 .6

170.1

184.8

1 3 8 .0

73.9
15.9

97.9
16.4

97.9
24.0

103.1
34.4

72.7
26.2

24
25
26

1.9
-7 .2
-.8
7 .7
2 .2

20.8
.8
5.3
11.5
3.2

16.2
5.5
- 3 .6
8.4
5.9

48.2
4 .7
5.1
14.1
24.3

47.3
5.3
-1 .4
13.8
29.6

39.1
7.4
-.6
17.5
14.8

27
28
29
30
31

181.3 123.8 146.1 134.7 177.8 192.3 169.6

1

7 4 .9

1 1 1 .4

35.1
16.9
17.3
5.7

50.6
41.5
14.1
5.3

69.7
48.7
16.0
15.8

5 4 .9

7 4 .9

1 1 1 .4

1 5 0 .2

2 .6
19.1

63.2
-.4

90.8
9 .2

97.8
20.2

21.0
2.6
-.2
11.4
7.2

33.3
12.1
9 .3 - 8 . 5
*
2.9
10.4 13.1
13.5
4.5

11.3
-3 .2
2.2
9 .6
2 .7

32.2
5.1
.7
11.3
15.1

Direct lending in credit markets..................................
U.S. Government securities......................................
State and local obligations........................................
Corporate and foreign b o n d s...................................
Commercial p ap er.......................................................
O th er..............................................................................

20.3
8 .0
-.2
4.7
5.8
2.1

45.0
16.8
8.7
7 .4
10.2
2 .0

- 2 .4 -4 .2
- 8 .3 -1 3 .0
-1 .1
-.1
10.1
8.2
-4 .4
- .6
1.4
1.3

15.4
4.1
2.1
4 .9
3.7
.6

35.1 - 2 3 . 5
19.4 - 2 2 . 4
1.4 - 2 . 7
8.6
.8
10.0 - 7 . 3
.3
3.5

15.2
-3 .5
2.6
7.7
6 .0
2 .3

8.3
-3 .3
.9
4.5
6.7
-.4

22.5
11.5
3.4
5.2
.8
1.7

16.6
13.4
.6
1.3
- . 1
1.4

52.7
25.3
2.1
.4
20.1
4.8

32
33
34
35
36
37

38
39
40
41
42

Deposits and currency....................................................
Time and savings accounts........................................
Large negotiable C D ’s ..........................................
Other at commercial b an k s..................................
At savings institutions............................................

48.3
5 .4
33.9 - 2 . 3
3.5 - 1 3 .7
17.5
3.4
8 .0
12.9

66.6
56.1
15.0
24.2
16.9

94.2 102.2
81.2 85.7
8.7
7.7
31.0
32.9
40.6 46.0

91.8 110.6
79.9 92.6
3.4
18.6
32.9 44.0
28.4 45.3

77.9
69.8
12.0
21.9
35.9

103.3
88.8
2.1
38.9
47.8

101.3
82.6
15.3
23.2
44.1

109.2
98.8
34.2
26.8
37.8

74.5
60.9
3.0
39.0
18.9

38
39
40
41
42

43
44
45

M oney............................................................................
D emand deposits.....................................................
C urrency...................................................................

14.5
12.1
2 .4

7 .7
4 .8
2.8

10.5
7.1
3.5

13.0
9 .6
3.4

12.0
8.0
3.9

17.9
15.1
2.8

8.1
4.1
3.9

14.5
9.1
5.5

18.7
15.3
3.4

10.3
4.3
6.0

13.6
11.8
1.8

43
44
45

46

Total of credit market instr., deposits, and currency.

68.7

50.5

64.2

90.0 117.7 126.9

87.1

47
48
49

Public support rate (in per cent)..............................
Private financial intermediation (in per cent)........
Total foreign fu n d s.....................................................

12.7
86.4
2.9

18.0 30.2 30.6 10.8
67.9 102.8 113.7 103.3
1.8 23.2
13.5
9.1

38.7
15.6
14.0
7 .0

18.2
14.5
12.3
9 .9

Sources o f fu n d s ...............................................................

7 5 .3

Private domestic deposits..........................................
Credit market borrow ing..........................................

45.9
8.5

27
28
29
30
31

Other sources...............................................................
Foreign funds...........................................................

32
33
34
35
36
37

Insurance and pension reserves...........................
Other, n e t.................................................................

43.2
6.3
-1 .0
15.7
22.2

P r iv a te d o m e s t i c n o n f in a n c ia l in v e s t o r s

16.5
12.1
4 .4

93.0 111.7 123.8 125.7 127.2

19.2 31.2 30.1
97.2 130.3 100.7
26.3
8.6 20.1

14.6
106.6
11.6

7.9
100.9
15.3

22.3
110.7
16.8

15.7
83.9
.5

11.5
-.4
12.0
13.6
-2 .1

5.4
- 2 .0
7.4
12.5
- 7 .0

6.0
- 1 .1
7.1
14.1
- 8 .1

46
47
48
49

Corporate equities not included above
1 Total net issues.. . . .................................
2
M utual fund shares.............................
3
Other equities..................................... .
4 Acquisitions by financial institutions.
5 Other net purchases...............................

5.1
5.8
-.7
10.
-5 .

9.5
4 .8
4 .7
12.2
-2 .7

9.5
2.6
6.9
11.4
-1 .9

Notes
Line
1. Line 2 o f p. A-62.
2. Sum o f lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit m arket funds raised by Federally sponsored credit agencies.
Included below in lines 13 and 33. Includes all G N M A-guaranteed
security issues backed by mortgage pools.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum o f lines 27, 32, 39, and 44.
17. includes farm and commercial mortgages.
25. Lines 39 + 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities o f foreign banking agencies to foreign affiliat cs.




14.7
1.2
13.5
19.2
-4 .6

12.0
- .6
12.6
15.6
-3 .6

5.7
13.0
-1 .6
.3
7.3
12.7
13.3 23.4
- 7 . 6 -1 0 .4

16.3
2.1
14.2
15.0
1.3

12.4
-.8
13.3
17.6
-5 .1

29. D emand deposits at commercial banks.
30. Excludes net investment o f these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less am ounts acquired by private finance. Line 37
includes mortgages.
39+44. See line 25.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Line 1 and 3. Includes issues by financial institutions.

A 60

U.S. BALANCE OF PAYMENTS □ JU N E 1974
1.

U.S. BALANCE OF PAYMENTS SUMMARY

(In millions o f dollars. Figures are seasonally adjusted unless shown in italics .)

Line

Credits ( + ) , debits ( —)

1971

1972
1972

1973

1973
IV

I

II

Iy p

III

1
2
3

M erchandise trade balance 1........................................................... - 2 ,6 9 8 - 6 ,9 1 2
688 -1 ,7 4 5
-9 4 5
-3 3 7
612
1,358
42,768 48,769 70,255
E xports........................................................................................
13,213
15,229
16,672
18,143 20,211
Im ports........................................................................................ -4 5 ,4 6 6 -5 5 ,6 8 1 -6 9 ,5 6 7 -1 4 ,9 5 8 -1 6 ,1 7 4 -1 7 ,0 0 9 -1 7 ,5 3 1 -1 8 ,8 5 3

4
5

M ilitary transactions, n et.................................................................
Travel and transportation, n e t.......................................................

-2 ,9 1 8
-2 ,2 8 8

-3 ,5 5 8
-2 ,8 5 3

-2 ,1 7 1
- 2 ,3 1 2

-8 6 4
-7 3 0

-8 2 5
-6 0 8

-7 3 0
-7 0 3

-5 4 1
-4 7 6

-7 5
-5 2 5

6
7
8
9

Investment income, net 1 .................................................................
U.S. direct investments abroad..............................................
O ther U.S. investments abroad..............................................
Foreign investments in the United S tates...........................

7,972
9,456
3,443
- 4 ,9 2 7

7,863
10,433
3,492
-6 ,0 6 2

9,723
13,974
4,576
- 8 ,8 2 7

2,232
2,991
875
- 1 ,6 3 4

2,330
3,177
1,006
- 1 ,8 5 3

2,133
3,248
1,088
-2 ,2 0 3

2,333
3,479
1,182
-2 ,3 2 8

2,927
4,070
1,300
-2 ,4 4 3

10

O ther services, n et.............................................................................

739

851

972

237

232

238

221

280

11

Balance on goods and services 3..............................................................

807

- 4 ,6 1 0

6,900

/ —870
\ 168

184

601

2,149

3,965

807

781

356

4 ,9 5 7

12

Remittances, pensions, and other transfers...................................

-1 ,5 5 3

- 1 ,5 7 0

- 1 ,9 1 3

-4 2 9

-3 9 1

-3 8 9

-4 0 4

-7 2 4

13

Balance on goods, services, and rem ittances........................................

-7 4 5

- 6 ,1 8 0

- 4 ,9 8 7 / - 1 , 2 9 9
\ -2 6 3

-2 1 3

212

1,745

3,241

436

384

-6 2

4 ,2 3 0

14

U.S. G overnment grants (excluding m ilitary).............................

- 2 ,0 4 5

- 2 ,1 7 4

- 1 ,9 4 7

-4 5 2

-3 4 5

-6 5 2

-4 9 9

-4 5 0

15

Balance on current account.......................................................................

- 2 ,7 9 0

- 8 ,3 5 3

3,041 / - l , 751
\ -6 9 8

-5 5 8

-4 4 0

1,246

2,791

62

-3 0 1

-5 1 6

3 ,7 9 5

16

-6 7 1
111

-5 8 3
174

-5 7 2
4

-1 ,0 6 9
*

19
20
21
22
23
24
25

U.S. Government capital flows excluding nonscheduled
repayments, net 4..........................................................................
Nonscheduled repayments o f U.S. Government assets............
U.S. G overnment nonliquid liabilities to other than foreign
official reserve agencies.................................................................
Long-term private capital flows, n e t.............................................
U.S. direct investments a b ro ad..............................................
Foreign direct investments in the United States................
Foreign securities......................................................................
U.S. securities other than Treasury issues...........................
Other, reported by U.S. b a n k s ..............................................
O ther, reported by U.S. nonbanking concerns...................

224
15
781
8
-7 7 1 - 2 ,0 2 5
273
160
-4 0
51
1,768
1,745
-4 4 2
-1 1 0
74
106

484
-3 0 3
-9 4 6
534
-1 2 6
496
-2 3 8
-2 3

205
1,666
-4 7 8
753
-2 0 4
1,187
247
161

223
-1 ,7 3 1
- 1 ,4 0 7
507
-5 1 2
664
-4 9 5
-4 8 8

26

Balance on current account and long-term capital 4 ...........................

-8 8 6

-6 6 8

2,549

214

-8 5 0

-7 7 6

825

2 ,0 1 5

- 9 8 2 - 1 ,7 6 5 - 1 ,4 2 6
-8 5 9 - 1 ,8 0 4 -1 ,4 1 3
-2 5 0
-1 1
-1 2
127
50
-1
177
- 1 ,4 9 0 -3 ,8 9 8
477

46
217
-4 7 0
299

-1 ,0 6 5
-9 5 3
-2 4 2
130

17
18

- 2 ,1 1 7
225

- 1 ,7 1 4
137

- 2 ,8 9 4
289

-4 6 7
-4 ,4 0 1
-4 ,9 4 3
-1 1 5
-9 6 6
2,269
-8 6 2
216

238
1,136
-1 5 2
-3 5 7
- 3 ,4 0 4 -4 ,8 5 5
2,068
160
-6 1 4
-7 9 1
4,093
4,335
- 1 ,1 2 0
-5 9 6
492
-2 7 6

-9 ,5 5 0

-9 ,8 4 3

-6 2 7
26

1,214 / - l , 556
\

27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53

Nonliquid short-term private capital flows, n e t......................... - 2 ,3 4 7
Claims reported by U.S. banks.............................................. - 1 ,8 0 2
Claims reported by U.S. nonbanking concerns.................
-5 3 0
Liabilities reported by U.S. nonbanking concerns............
-1 5
Allocations o f Special Drawing Rights (SD R ’s ) ........................
717
Errors and omissions, n e t............................................................... -1 0 ,7 8 4

- 1 ,6 3 7
-1 ,4 9 5
-3 1 5
173
710
- 3 ,1 1 2

Net liquidity balance.................................................................................. -2 1 ,9 6 5 -1 3 ,8 8 2
Liquid private capital flows, n e t.....................................................
Liquid claims..............................................................................
Reported by U.S. banks..................................................
Reported by U.S. nonbanking concerns.....................
Liquid liabilities.........................................................................
To foreign commercial b a n k s........................................
To international and regional organizations..............
To other foreigners...........................................................

M em oranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14)..........................................................................
Reinvested earnings o f foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20)...............................
Reinvested earnings o f U.S. incorporated affiliates o f foreign
firms (excluded from lines 9 and 2 1 )........................................

- 4 ,7 9 3

-1 ,0 9 7

-2 7 5

-7 ,7 8 9 / —3,851

- 6 ,5 4 9

- 1 ,6 1 7

1,498

- 1 ,1 2 6

\- 3 ,1 9 7

- 6 ,1 9 7

- 2 ,0 3 3

602

-1 6 1

2,367
-1 3 1
-7 7
-5 4
2,498
1,995
181
322

-3 ,9 2 7
- 2 ,0 5 0
- 1 ,3 5 7
-6 9 3
- 1 ,8 7 7
- 1 ,8 9 7
11
9

1,972
869
939
-7 0
1,103
709
31
363

632
-3 2 3
-3 0 3
-2 0
955
851
-5 0
154

3,826
-4 2 9
-3 7 9
-5 0
4,255
3,200
381
674

-5 ,2 8 6 / - 1 , 4 8 4 -1 0 ,4 7 6
\- 7 ,5 0 5 - 9 ,9 9 5

355

2,130

2,700

769

940

3 ,0 0 0

- 2 ,1 8 4

3,542
2,503
-7 ,7 8 8
- 1 ,0 9 7 -1 ,2 3 4 -1 ,9 3 3
-5 6 6
- 7 4 2 - 1 ,1 0 0
-5 3 1
-4 9 2
-8 3 3
4,776
-6 ,6 9 1
4,436
-6 ,9 0 8
3,862
2,863
682
104
373
810
1,200
-4 6 5

Official reserve transactions balance financed by changes in :............ - 2 9 ,7 5 3 -1 0 ,3 4 0
Liquid liabilities to foreign official agencies................................
Other readily marketable liabilities to foreign official agen­
cies 5.................................................................................................
N onliquid liabilities to foreign official reserve agencies re­
ported by U.S. G ovt.....................................................................
U.S. official reserve assets, n e t.......................................................
G o ld .............................................................................................
SD R ’s ..........................................................................................
Convertible currencies.............................................................
Gold tranche position in I M F ...............................................

- 4 ,2 1 0
-3 ,9 5 3
-7 3 5
478

27,615

9,720

4,434

1,645

9,097

-7 9 8

-1 ,6 7 6

-5 5 1

399

1,118

117

1,202

259

11

-3 5 4

341
2,348
866
-2 4 9
381
1,350

189
32
547
-7 0 3
35
153

-4 7 5
209

-1 6 7
-1 1 1

-4 3
220

167
17

-4 5 2
-1 3

-1 4 7
-1 5

9
233
-3 3

-1 7 7
82
-1 6

233
-1 3

8

-1 3

-1 5

3,153

4,200

2,558

949

716

833

521

487

3,192

4,521

( 6)

( 6)

( 6)

498

548

( 6)

( 6)

( 6)

- 3 ,1 9 7

- 6 ,1 9 7

-2 ,0 3 3

602

-1 6 1

- 1 ,5 0 3 ’ - 9 , 9 9 5

769

940

3 ,0 0 0

54

Balances excluding allocations o f SD R ’s:
Net liquidity............................................................................... -2 2 ,6 8 2 : -1 4 ,5 9 2 ; - 7 ,7 8 9

55

Official reserve transactions.................................................... -3 0 ,4 7 0 i -1 1 ,0 5 0 i -5 ,2 8 6

For notes see the following page.




343

9

( 6)

(6)

( 6)

( 6)

( 6)

( 6)

JU N E 1974 □ FOREIGN TRAD E; U.S. RESERVE ASSETS

A 61

2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions o f dollars)
Exports 1

Im ports 2

Trade balance

1971

1972

1973

1974

1971

1972

1973

1974

M onth:
J a n ...,
F e b ...
M ar...
A p r...
M a y ..
J u n e ..
Ju ly ..,
A u g ...
Sept...
O c t.. .
N ov...
D e c...

3,601
3,695
3,790
3,631
3,746
3,672
3,573
3,667
4,487
2,669
3,196
3,881

4.074
3,824
3,869
3,820
3,882
3,971
4.074
4,197
4,176
4,316
4,473
4,558

4,955
5,071
5,309
5,492
5,557
5,726
5,860
6,044
6,414
6,584
6,871
6,954

7,111
7,606
7,674
8,234

3,599
3,564
3,628
3,774
3,908
4,037
3,832
3,913
4,179
3,469
3,456
4,169

4,436
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002

5,244
5,482
5,411
5,356
5,700
5,765
5,821
5,991
5,621
5,969
6,628
6,084

6,467
7,392
7,845
8,141

2
130
160
-143
-161
-365
-259
-247
308
-800
-260
-288

-3 6 1
-6 4 9
-6 4 7
-5 9 6
-6 0 4
-4 9 7
-4 9 1
-5 3 0
-4 3 6
-4 2 1
-6 7 5
-4 4 4

-289
-412
-102
136
-143
-4 0
39
54
792
615
243
870

644
213
-1 7 1
93

Q uarter:
I
I I
I I I ....
I V .. . .

11,086
11,049
11,727
9,746

11,767
11,673
12,447
13,347

15,334
16,775
18,318
20,408

22,390

10,792
11,719
11,924
11,094

13,403
13,370
13,903
14,888

16,137
16,821
17,434
18,680

21,704

294
-6 7 0
-1 9 7
- 1 ,3 4 8

-1,657
-1,6 9 7
-1,456
-1 ,5 4 0

-8 0 3
-4 6
884
1,728

686

Y ear3. .,

43,549

49,208

70,799

45,563

55,555

69,121

- 2 ,0 1 4

-6,347

1,678

1 Exports o f domestic and foreign merchandise; excludes Dept, of
Defense shipments o f grant-aid military equipment and supplies under
M utual Security Program.
2 General imports including imports for immediate consumption plus
entries into bonded warehouses.

1971

1972

1973

1974

3 Sum of unadjusted figures.
N ote .— Bureau o f the Census data. Details may not add to totals be­

cause of rounding.

3. U.S. RESERVE ASSETS
(In millions of dollars)
Gold sto ck 1
End of
year

Total

C on­
vertible
foreign
curren­
cies

Reserve
position
in
IM F 3

T o tal2

T reasury

19,359
18,753
17,220
16,843
16,672

17,804
16,947
16,057
15,596
15,471

17,767
16,889
15,978
15,513
15,388

i 1*6
99
212
432

1,555
1,690
1,064
1,035
769

1 9 6 5 ...
15,450
1 9 6 6 ...
14,882
1 9 6 7 ...
14,830
1 9 6 8 ...
15,710
1 9 6 9 ... 7 16,964

6 13,806
13,235
12,065
10,892
11,859

613,733
13,159
11,982
10,367
10,367

781
1,321
2,345
3,528
72,781

6 863
326
420
1,290
2,324

1 9 7 0 ...
14,487
1971 . . . 812,167
19729 . .
13,151
1973....
14,378

11,072
10,206
10,487
11,652

10,732
10,132
10,410
11,567

629
8 276
241
8

1,935
585
465
552

1 9 6 0 ...
1 9 6 1 ...
1 9 6 2 ...
1 9 6 3 ...
1 9 6 4 ...

Gold sto ck 1
SD R ’s 4

851
1,100
1,958
2,166

NOTES TO TABLE 1 O N OPPOSITE PAGE:
1 Adjusted to balance o f payments basis; excludes transfers under
military grants, exports under U.S. military agency sales contracts, and
im ports o f U.S. military agencies.
2 Includes fees and royalties from U.S. direct investments abroad or
from foreign direct investments in the United States.
3 Equal to net exports o f goods and services in national income and
product accounts o f the U nited States.

1974
J a n .. . .
F e b .. . .
M ar___
A p r.. . .
M ay. ..

T o tal2

Treasury

Con­
vertible
foreign
curren­
cies5

10,487
10,487
10,487
10,487
10,487
1011,652
11,652
11,652

10,410
10,410
10,410
10,410
10,410
1011,567
11,567
11,567

16
8
8
8
8
8
8
8

464
470
474
479
483
10541
547
552

1,949
1,949
1,949
1,949
1,949
102,166
2,166
2,166

11,652
11,652
11,652
11,652
11,652

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

59
68
9
9
66

688
757
761
824
989

2,166
2,166
2,166
2,166
2,163

Total

1973
M ay . . .
12,916
June. ..
12,914
July. . .
12,918
12,923
Aug---Sept---12,927
O c t.. . . 1014,367
14,373
N o v ....
D e c.. .
14,378

1 Includes (a) gold sold to the United States by the IM F with the right
o f repurchase, and (b) gold deposited by the IM F to mitigate the impact
on the U.S. gold stock o f foreign purchases for the purpose o f making
gold subscriptions to the IM F under quota increases. For corresponding
liabilities, see Table 5.
2 Includes gold in Exchange Stabilization Fund.
3 The United States has the right to purchase foreign currencies equiva­
lent to its reserve position in the IM F automatically if needed. U nder ap­
propriate conditions the United States could purchase additional amounts
equal to the U.S. quota.
4 Includes allocations by the IM F o f Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SD R ’s.
5 For holdings o f F.R. Banks only, see p. A -l2.
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.




End of
month

14,565
14,643
14,588
14,651
14,870

Reserve
position
in
IM F 3

SD R ’s 4

7 Includes gain o f $67 million resulting from revaluation o f the German
m ark in Oct. 1969, o f which $13 million represents gain on mark holdings
at time o f revaluation.
8 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect m arket exchange rates as o f Dec. 31, 1971.
9 Total reserve assets include an increase o f $1,016 million resulting
from change in par value o f the U.S. dollar on M ay 8, 1972; o f which,
total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IM F $33 million, and SD R ’s $155 million.
10 Total reserve assets include an increase of $1,436 million resulting
from change in par value o f the U.S. dollar on Oct. 18, 1973; of which,
total gold stock is $1,165 million (Treas. gold stock $1,157 million)
reserve position in IM F $54 million, and SD R ’s $217 million.
N o te .—See Table 20 for gold held under earm ark at F.R . Banks for
foreign and international accounts. Gold under earm ark is not included
in the gold stock o f the United States.

4 Includes some short-term U.S. Govt, assets.
2 Includes changes in long-term liabilities reported by banks in the
United States and in investments by foreign official agencies in debt
securities o f U.S. Federally sponsored agencies and U.S. corporations.
6 N ot available.
N ote . —D ata are from U.S. D epartm ent o f Commerce, Bureau of Eco­
nomic Analysis. Details may not add to totals because o f rounding.

U.S. GOLD TRANSACTIONS a JU N E 1974

A 62

4. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
AND INTERNATIONAL ORGANIZATIONS
(N et sales [—] or net acquisitions; in millions o f dollars valued at $35 per fine ounce through Apr. 1972. at $38 from
May 1972-Sept. 1973, and at $42.22 thereafter)
1973
Area and country

1963

1964

1965

1966

1967

1968

1969

1970

1971

III
Western Europe:
A u stria..................................
Belgium.................................
F rance....................................
Germany, Fed. Rep. o f . ..
Ireland...................................
Italy........................................
N etherlands..........................
Spain......................................
Switzerland...........................
United K ingdom .................
Bank for Intl. Settlements.
O ther......................................
T o ta l.

-8 2
-5 i8

-130
329

-5 5
-4 0
-4 0 5
-2 2 5
-1
200
-6 0
-3 2
-8 1
618

-1 0 0
-8 3
-8 8 4
-2
-8 0
-3 5
-1 8 0
-5 0
150

-2
-6 0

-6

-3 5
-1,299

-399

Canada ................................
Latin American republics:
Argentina .......................
Brazil.................................
C olom bia..........................
Venezuela.........................
O ther..................................
T o ta l.
Asia:
Ir a q .................
Jap an ...............
Lebanon
M alaysia.........
Philippines. . .
Saudi A ra b ia .
Singapore
O ther...............

-1 1
32

17
-1 0

25

20

-13

-6

-5 8
600

325
500
41
-7 6

-129

-110
-473

-2
-8 5

-5 2
-209
-1 9

-3 0
-8 7 9

-5 0
-8 3 5

-2 5

-4 9

16

-47

200
H

-2 9

-13

-659

-980

-669

969

-204

-7 9 6

200

150

50

-3 9
-3
7

-1
-1

-4 1
-4

-2 1

-1 1

-1

-5 6

-2 5
—175

-2 5

-25

-40

-2 9

-8 0

-5

-65

-5 4

-131

-5

-4 2
-119

-1

40

-4

-3 5
-1 0
-2

11
-9

2 -9 1

-3 0
39

-3
-3

-1 4

-1 4

-2 2

12

-2 4

-8 6

-4 4

-366

-213

-3 8

All o th er.........................

-3 6

-1 6

-2 2

3-166

3-68

-8 1

-6

Total foreign countries.

-3 9 2

-36 -1 ,3 2 2

-608 -1 ,0 3 1

T o ta l................... .

5 -2 2 5

Intl. M onetary F u n d 4..
G rand to ta l. . . .

-3 9 2

-36 -1 ,5 4 7

-1,118

957

-6 3 1

-845

-3

22

-3

10

-1 5 6

-2 2

-5 4 4

-431 -1 ,0 0 9

-1,121

967

6-787

-867

-5 4 7

177

1 Includes purchase from D enm ark o f $25 million.
2 Includes purchase from Kuwait o f $25 million.
3 Includes sales to Algeria o f $150 million in 1967 and $50 million in
1968.
4 Includes IM F gold sales to and purchases from the United States,
U.S. payment o f increases in its gold subscription to IM F, gold deposits
by the IM F (see note 1 (b) to Table 3), and withdrawal o f deposits. The
first withdrawal ($17 million) was made in June 1968 and the last with­
drawal ($144 million) was made in Feb. 1972.
IM F sold to the United States a total o f $800 million o f gold ($200
million in 1956, and $300 million in 1959 and in 1960) with the right of




IV

-2 5

-6 0 i

-9
56

1974

1972

repurchase; proceeds from these sales invested by IM F in U.S. Treasury
securities. IM F repurchased $400 million in Sept. 1970 and the remaining
$400 million in Feb. 1972.
5 Payment to the IM F o f $259 million increase in U.S. gold subscription
less gold deposits by the IM F.
6 Includes the U.S. payment o f $385 million increase in its gold sub­
scription to the IM F and gold sold by the IM F to the United States in
m itigation of U.S. sales to other countries making gold payments to the
IM F. 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 IM F totaled $548 million each.

JUNE 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 63

U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
Official institutions2

End
of
period

Total

Liquid
liabili­
ties to
IM F
arising
from
gold
trans­
actions i

Liquid liabilities to
other foreigners

Liquid

Total

Short­
term
liabili­
ties re­
ported
by
banks
in
U.S.

Li quid
N onm ar­
liabili­
ketable
N onm ar­ noncon­
Other
ties
M arket­ ketable vertible readily to com­
able
con­
m
arket­
mercial
U.S.
vertible Treas.
U.S.
able
banks
U.S.
Treas.
liabili­ abroad <>
bonds
Treas.
bonds
ties5
and
bonds
and
notes4
notes3
and
notes

24,268

800

12,914

11,963

751

5,346

3,013

2,565

448

2,195

1963 9.............

J26,433
\26,394

800
800

14,459
14,425

12,467
12,467

1,217
1,183

703
703

63
63

9
9

5,817
5,817

3,397
3,387

3,046
3,046

351
341

1,960
1,965

1964 9............

/29,313
\29,364

800
800

15,790
15,786

13,224
13,220

1,125
1,125

1,079
1,079

204
204

158
158

7,271
7,303

3,730
3,753

3,354
3,377

376
376

1,722
1,722

1962

200

Total

Short­
term
liabili­
ties re­
ported
by
banks
in
U.S.

Liquid
liabili­
ties to
non­
mone­
tary
M arket­
inti,
able
and re­
U.S.
gional
Treas.
organi­
bonds
zations 8
and
notes3*7

29,569

834

15,826

13,066

1,105

1,201

334

120

7,419

4,059

3,587

472

1,431

1966 9 ............

/3 1 ,145
\31,020

1,011
1,011

14,841
14,896

12,484
12,539

860
860

256
256

328
328

913
913

10,116
9,936

4,271
4,272

3,743
3,744

528
528

906
905

1967 9.............

/35.819
\35,667

1,033
1,033

18,201
18,194

14,034
14,027

908
908

711
711

741
741

1,807
1,807

11,209
11,085

4,685
4,678

4,127
4,120

558
558

691
677

1968 9.............

f38,687
\38,473

1,030
1,030

17,407
17,340

11,318
11,318

529
462

701
701

2,518
2,518

2,341
2,341

14,472
14,472

5,053
4,909

4,444
4,444

609
465

725
722

1969 9.............

»o/45,755
\45,914

1,019
1,019

ioi5,975
15,998

11,054
11,077

346
346

10 555
555

102,515
2,515

1,505
1,505

23,638
23,645

4,464
4,589

3,939
4,064

525
525

659
663

1970—Dec. 9.

J47,009
146,960

566
566

23,786
23,775

19,333
19,333

306
295

429
429

3,023
3,023

695
695

17,137
17,169

4,676
4,604

4,029
4,039

647
565

844
846

1971—Dec. i i

f67,681
167,808

544
544

51,209
50,651

39,679
39,018

1,955
1,955

6,060
6,093

3,371
3,441

144
144

10,262
10,949

4,138
4,141

3,691
3,694

447
447

1,528
1,523

196 5

1972—D e c.r .

82,888

61,526

40,000

5,236

12,108

3,639

543

14,665

5,070

4,645

425

1,627

1973—Apr. *■.
M ay r .
June r .
July r . .
Aug. r .
Sept.r .
O c t.r . ,
D e c.r .

1290,583
92,088
92,189
93,218
92.580
92,073
93,175
92.581
92,608

70,754
70,920
70,701
71,028
70,520
69,777
69,702
67,400
66,810

45,955
46,117
45,713
46,138
45,721
45,174
45,212
43,791
43,919

6,934
6,934
6,934
6,934
6,906
6,914
6,929
6,207
5,701

12,245
12,245
12,245
12,245
12,319
12,319
12,319
12,319
12,319

3,631
3,628
3,805
3,705
3,555
3,355
3,233
3,234
3,210

1,989
1,996
2,004
2,006
2,019
2,015
2,009
1,849
1,661

12,851
14,059
14,356
15,310
15,077
15,026
15,953
17,255
17,643

5,348
5,360
5,463
5,362
5,451
5,651
5,699
5,916
6,152

4,949
4,976
5,080
4,988
5,116
5,304
5,325
5,506
5,722

399
384
383
374
335
347
374
410
430

1,630
1,749
1,669
1,518
1,532
1,619
1,821
2,010
2,003

1974—Jan . r. .
F eb ...
Mar.P
A pr.v .

90,114
92,022
95,670
97,520

63,891
64,097
65,534
67,163

41,576
41,989
43,419
45,184

5,229
5,192
5,192
5,020

12,321

3,210

1,555

18,014
19,677
21,997
22,067

6,285
6,455
6,729
6,996

5,836
6,045
6,329
6,576

449
410
400
420

1,924
1,793
1,410
1,294

N ov.r,

1 Includes (a) liability on gold deposited by the IM F to mitigate the
impact on the U.S. gold stock o f foreign purchases for gold subscriptions
to the IM F under quota increases, and (b) U.S. Treasury obligations at
cost value and funds awaiting investment obtained from proceeds o f sales
of gold by the IM F to the United States to acquire income-earning assets.
2 Includes BIS and European Fund.
3 Derived by applying reported transactions to benchm ark data;
breakdown o f transactions by type o f holder estimated 1962-63.
4 Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities o f U.S. Federally-sponsored agencies and U.S. cor­
porations.
6 Includes short-term liabilities payable in dollars to commercial banks
abroad and short-term liabilities payable in foreign currencies to commer­
cial banks abroad and to “ other foreigners.”
7 Includes marketable U.S. Treasury bonds and notes held by commer­
cial banks abroad.
8 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American and Asian Development Banks.
9 D ata on the two lines shown for this date differ because o f changes
in reporting coverage. Figures on first line are comparable with those
shown for the preceding date; figures on second line are comparable with
those shown for the following date.
!0 Includes $101 million increase in dollar value o f foreign currency
liabilities resulting from revaluation o f the G erman mark in Oct. 1969 as
follows: liquid, $17 million, and other, $84 million.




12,322

12,329
12,330

3,210

1,384

3,210
3,210

1,384
1,419

11 D ata on the second line differ from those on first line because cer­
tain accounts previously classified as “ official institutions” are included
with “ banks” ; a number of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions o f foreign countries have been increased in
value to reflect market exchange rates as o f Dec. 31, 1971.
12 Includes $147 million increase in dollar value o f foreign currency
liabilities to official institutions o f foreign countries revalued to reflect
market exchange rates as follows: short-term liabilities, $15 m illion; non­
marketable convertible U.S. Treasury bonds and notes, $113 million; and
nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million.
N ot e .—Based on Treasury Dept, data and on data reported to the
Treasury Dept, by banks and brokers in the United States. D ata correspond
generally to statistics following in this section, except for the exclusion
of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign
official nonreserve agencies, the inclusion o f investments by foreign
official reserve agencies in debt securities o f U.S. Federally-sponsored
agencies and U.S. corporations, and m inor rounding differences. Table
excludes IM F “holdings of dollars,” and holdings of U.S. Treasury letters
of credit and non-negotiable, non-interest-bearing special U.S. notes held
by other international and regional organizations.

A 64

INTL. CAPITAL TRANSACTIONS OF T H E U.S. o JU N E 1974
6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions o f dollars)

End o f period

1 9 6 7 ...
1968 3.

Total
foreign
countries

Western
Europe 1

C anada

Latin
American
republics

18,194
/17,407

10,321
8,070
8,062
4 7,074
4 7,074
13,620
13,615
30,010
30,134

1,310
1,867
1,866
1,624
1,624
2,951
2,951
3,980
3,980

1,582
1,865
1,865
1,888
1,911
1,681
1,681
1,414
1,429

\ 17,340

1969 3.

4 15,975
14 15,998

/23,786
\ 23,775
/51,209
\50,651

1970 3.
1971 5.

Asia

Africa

4,428
5,043
4,997
4,552
4,552
4,713
4,708
14,519
13,823

O ther
countries 2

250
259
248
546
546
407
407
415
415

303
303
302
291
291
414
413
871
870

61,526

34,197

4,279

1,733

17,577

777

2,963

1973- -A pr.r ..
May r . .
June r ..
July r . .
A ug.r . ,
Sept.r .
O c t.r ..
N o v .r .
D e c.r .

6 70,754
70,920
70,701
71,028
70,520
69,777
69,702
67,400
66,810

6 45,608
46,646
46,967
47,140
47,260
47,099
47,514
46,002
45,717

4,157
4,104
4,111
4,043
3,836
3,759
3,851
3,820
3,853

1,917
1,904
1,999
2,075
2,015
1,861
1,938
2,233
2,544

15,420
14,429
13,734
13,692
13,637
13,289
12,601
11,474
10,884

839
940
992
928
738
769
735
785
788

2,813
2,897
2,898
3,150
3,034
3,000
3,063
3,086
3,024

1974—J a n .. . .
F e b .. . .
M ar.*.
A p r.* ..

63,891
64,097
65,534
67,163

43,290
42,389
42,780
42,648

3,945
4,262
4,195
4,309

2,446
2,743
2,886
3,522

10,479
10,878
11,631
12,360

838
1,000
1,249
1,402

2,893
2,825
2,793
2,922

1972'

1 Includes Bank for International Settlements and European Fund.
2 Includes countries in Oceania and Eastern Europe, and Western Euro­
pean dependencies in Latin America.
3 See note 9 to Table 5.
4 Includes $101 million increase in dollar value of foreign currency
liabilities resulting from revaluation o f the G erman m ark in Oct. 1969.
5 D ata on second line differ from those on the first line because certain
accounts previously classified as “ Official institutions” are included in
“ Banks” ; a number o f reporting banks are included in the series for
the first time; and U.S. Treasury liabilities payable in foreign currencies
to official institutions o f foreign countries have been increased in value by
$110 million to reflect m arket exchange rates as o f Dec. 31, 1971.

6 Includes $147 million increase in dollar value o f foreign currency
liabilities revalued to reflect market exchange rates.
N ote .— D ata represent short- and long-term liabilities to the official
institutions of foreign Countries, as reported by banks in the United States;
foreign official holdings o f marketable and nonmarketable U.S. Treasury
securities with an original maturity o f m ore than 1 year, except for non­
m arketable notes issued to foreign official nonreserve agencies; and in­
vestments by foreign official reserve agencies in debt securities o f U.S.
Federally-sponsored agencies and U.S. corporations.

7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonm onetary international
and regional organizations 6

To all foreigners
Payable in dollars
End o f period
Total
Demand
1969...............
19707.............

U.S
Treasury
bills and
Time 2 certifi­
cates 3

D eposits

Total i

O ther
short­
term
liab.4

Payable
in
foreign
cur­
rencies

Total
Demand

U.S.
Treasury
bills and
Tim e2 certifi­
cates

O ther
short­
term
lia b .4

62
69
69
73
73
86

83
159
159
192
192
202

244
211
211
210
210
326

223
381
381
896
892
800

584
572
644
607
611
660
577
622
597

1,429
1,579
1,569
1,488
1,487
1,552
1,768
1,962
1,955

119
141
155
206
178
80
70
73
101

112
119
134
116
118
100
93
97
86

221
148
169
116
61
62
173
373
296

976
1,172
1,110
1,049
1,129
1,311
1,431
1,420
1,471

640
770
766
706

1,855
1,693
1,142
1,109

95
77
96
60

94
67
70
60

286
232
227
209

1,380
1,317
749
780

1971 8............
1972 r .............

39,770
41,351
41,393
55,018
55,036
60,228

20,460
15,785
15,795
10.399
6,459
8,288

6,959
5,924
5,961
5,209
4,217
5,631

5,015
14.123
14.123
33.025
33.025
31,850

7,336
5,519
5,514
6,385
11,335
14,458

429
368
368
386
392
496

1973—A p r.r .
M ay r .
Ju n e r .
Ju ly r .
A u g .r
Sept.r
O ct.r .
N o v .r
D ec.r ,

65,183
66,732
66,718
67,925
67,400
67,057
68,258
68,514
69,239

64,599
66,160
66,074
67,317
66,790
66,396
67,681
67,892
68,642

8,119
8,365
9.114
8,989
8,436
8,754
9,108
9,849
11.399

5,655
5,715
5,830
5,879
6,137
6,130
6,772
6,884
6,995

36,440
35,965
34,931
34,556
34,257
33,702
32,869
31,977
31,886

14,384
16,115
16,199
17,894
17,960
17,810
18,932
19,182
18,363

1974—J a n ...
F eb...
Mar.*
A p r.* ,

67,281
69.404
72,888
74,936

66,641
68,635
72,122
74,230

10,822
11,473
11,646
11,973

7,030
7,066
7,156
7,504

29,543
30,274
31,483
32,676

12,246
19,822
21,837
22,076




Deposits

613
820
820
1,372
1,367
1,413

40,199
41,719
41,761
55.404
t55,428
60,724

For notes see the following page.

IM F
gold
invest­
m ent5

800
400
400
400
400

JU N E 1974 □ INTL. CAPITAL TRANSACTION S OF TH E U.S.

A 65

7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE— Continued
(Amounts outstanding; in millions o f dollars)
Total to official, banks and other foreigners

To official institutions i o

Payable in dollars
End o f period

Demand

Tim e2

U.S.
Treasury
bills and
certifi­
cates 3

19718........................
1972—D e c.r ...........

38,786
J40,499
\40,541
J53,632
153,661
59,310

20,397
15,716
15,726
10,326
6,386
8,203

6,876
5,765
5,802
5,017
4,025
5,429

3,971
13,511
13,511
32,415
32,415
31,523

7,113
5,138
5,133
5,489
10,443
13,659

429
368
368
386
392
496

1973—A p r.r ...........
M ay r ...........
June r ...........
July r............
A ug . r ...........
Sept.r ...........
O ct.r ............
N o v .r...........
D ec.r ...........

63,755
65,152
65,149
66,436
65,914
65,504
66,490
66,552
67,284

8,000
8,224
8,959
8,782
8,258
8,674
9,038
9,776
11,297

5,543
5,597
5,696
5,762
6,019
6,030
6,678
6,787
6,909

36,219
35,817
34,762
34,440
34,196
33,640
32,696
31,604
31,590

13,408
14,943
15,089
16,845
16,831
16,499
17,501
17,763
16,892

1974—Jan ................
Feb...............
M ar.p...........
A pr.P...........

65,426
67,711
71,745
73,827

10,728
11,396
11,550
11,913

6,936
6,999
7,086
7,444

29,257
30,042
31,255
32,467

17,865
18,505
21,089
21,296

Total

1969.........................

Deposits

Payable in dollars
Payable
in
foreign
cur­
rencies

Other
short­
term
liab .4

D emand

T im e2

11,077
19,333
19,333
39,679
39,018
40,000

1,930
1,652
1,652
1,620
1,327
1,591

2,942
2*554
2,554
2,504
2,039
2,880

3,844
13,367
13,367
32,311
32,311
31,453

2,159
1,612
1,612
3,086
3,177
3,905

202
148
148
158
165
171

584
572
644
607
611
660
577
622
597

45,955
46,117
45,713
46,138
45,721
45,174
45,212
43,791
43,919

1,715
1,720
1,941
1,935
1,576
1,633
1,811
2,035
2,125

2,920
2,949
3,124
3,192
3,355
3,226
3,846
3,802
3,911

36,137
35,736
34,684
34,360
34,118
33,554
32,613
31,529
31,511

4,996
5,525
5,777
6,461
6,545
6,634
6,814
6,298
6,245

9 187
187
187
189
127
127
127
127
127

640
770
766
706

41,576
41,989
43,419
42,184

2,379
2,407
2,631
2,920

3,705
3,703
3,799
3,949

29,152
29,917
31,064
32,312

6,212
5,834
5,798
5,877

127
127
127
127

To b a n k sii

D eposits

O ther
short­
term
liab.4

To other foreigners
Payable in dollars

End o f period

Total

Deposits
Total
Demand

Tim e2

Payable
in
foreign
currencies

U.S.
Treasury
bills and
certifi­
cates 3

Total

U.S.
Treasury
bills and
certifi­
cates

O ther
short­
term
liab.4

Deposits
Total
Demand

Tim e2

U.S.
Treasury
bills and
certifi­
cates

O ther
short­
term
liab.4

To banks
and other
foreigners:
Payable in
foreign
cur­
rencies

1972—D ec.r ..........

27,709
/2 1 ,166
121,208
fl 3,953
\14,643
19,310

23,419
16,917
16,949
10,034
10,721
14,340

16,756
12,376
12,385
7,047
3,399
4,658

1,999
1,326
1,354
850
320
405

20
14
14
8
8
5

4,644
3,202
3,197
2,130
6,995
9,272

4,064
4,029
4,039
3,691
3,694
4,645

1,711
1,688
1,688
1,660
1,660
1,954

1,935
1,886
1,895
1,663
1,666
2,145

107
131
131
96
96
65

312
325
325
274
271
481

226
220
220
228
228
325

1973—A p r.r ...........
May r ...........
June r ...........
July r ............
Aug . r ...........
S ept.r...........
O ct.r ...........
N o v .r ..........
D ec...............

17,800
19,035
19,437
20,299
20,192
20,330
21,278
22,762
23,364

12,453
13,674
13,899
14,892
14,594
14,493
15,504
16,761
17,174

4,334
4,645
5,053
4,957
4,806
5,070
5,250
5,734
6,941

312
319
258
321
353
430
473
469
512

7
8
8
8
10
8
7
8
11

7,801
8,702
8,579
9,607
9,425
8,984
9,774
10,550
9,710

4,949
4,977
5,081
4,989
5,115
5,305
5,325
5,506
5,721

1,951
1,859
1,965
1,890
1,876
1,972
1,977
2,007
2,232

2,312
2,329
2,314
2,250
2,311
2,374
2,359
2,517
2,486

75
73
70
72
68
77
76
67
68

611
716
732
776
861
881
912
915
936

398
385
457
418
483
533
449
495
469

1974—Jan................
Feb...............
M ar.*...........
A pr.P...........

23,850
25,722
28,326
28,641

17,501
19,035
21,359
21,487

6,329
6,857
6,572
6,601

511
521
507
678

14
32
54
63

10,648
11,625
14,225
14,145

5,835
6,044
6,329
6,576

2,020
2,131
2,347
2,392

2,719
2,775
2,779
2,817

91
93
137
92

1,005
1,045
1,065
1,274

513
642
639
579

1969..........................
,

o

1 D ata exclude “ holdings o f dollars” o f the IM F.
2 Excludes negotiable time certificates o f deposit, which are included
in “O ther.”
3 Includes nonmarketable certificates o f indebtedness issued to official
institutions o f foreign countries.
4 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates o f deposit. See also note 8(a).
5 U.S. Treasury bills and certificates obtained from proceeds o f sales of
gold by the IM F to the United States to acquire income-earning assets.
Upon termination o f investment, the same quantity o f gold was reac­
quired by the IM F.
6 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American Development Bank.
Includes difference between cost value and face value of securities in
IM F gold investment account.
7 D ata on the two lines shown for this date differ because o f changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
8 D ata on second line differ from those on first line because (a) those
liabilities o f U.S. banks to their foreign branches and those liabilities of




U.S. agencies and branches of foreign banks to their head offices and
foreign branches, which were previously reported as deposits, are included
in “ Other short-term liabilities” ; (b) certain accounts previously classified
as “ Official institutions” are included in “ Banks” ; and (c) a number o f
reporting banks are included in the series for the first time.
9 Includes $15 million increase in foreign currency liabilities revalued
to reflect market exchange rates.
lOForeign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
11 Excludes central banks, which are included in “ Official institutions.”
N ote .—“ Short term” refers to obligations payable on demand or having
an original maturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 9. D ata exclude the “ holdings of dollars”
of the International M onetary Fund; these obligations to the IM F consti­
tute contingent liabilities, since they represent essentially the am ount o f
dollars available for drawings from the IM F by other member countries.
D ata exclude also U.S. Treasury letters o f credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop­
ment Bank and the International Development Association.

INTL. CAPITAL TRANSACTION S OF TH E U.S. □ JU N E 1974

A 66

8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End o f period. Amounts outstanding; in millions of dollars)
1972

1973

1974

Area and country
Ju ly r

A u g .r

Sept.r

O ct.r

N ov-r

Dec.

272
1,094
284
163
4,441
5,346
238
1,338
1,468
978
416
256
1,184
2,857
97
5,011
117
1,483
11
81

305
1.457
477
165
5,452
12,837
240
870
2,029
1,082
477
282
1,951
3,310
102
6.457
66
2,965
18
81

302
1,381
436
153
5,246
12,912
236
1,510
1,945
1,055
472
237
1,871
3,226
115
5,943
57
3,015
17
90

292
1,378
409
145
5,296
13,236
215
1,140
2,022
1,024
459
259
1,835
3,309
72
5,593
58
3,099
16
114

204
1,411
470
135
4,143
14,180
280
1,095
2,534
999
467
284
1,787
3,316
83
6,416
61
3,426
40
96

166
1,463
527
136
3,415
14,227
236
1,224
2,866
980
470
319
1,807
3,091
75
6,473
76
2,926
20
101

Dec . r
Europe:
A ustria..............................
Belgium-Luxembourg...
D en m ark ..........................
Finland.............................
F rance..............................
G erm any..........................
G reece..............................
Ita ly ..................................
N etherlands.....................
N orw ay ............................
Portugal...........................
Spain.................................
Sweden..............................
Sw itzerland......................
T u rk ey ..............................
United K ingdom ...........
Y ugoslavia.......................
O ther Western Europe1
U.S.S.R.............................
O ther Eastern E urope. .

Jan.

Feb.

M ar.*

Apr.*

161
1.483
659
165
3.483
13,227
389
1,404
2,886
965
534
305
1,885
3,377
98
6,148
86
3,352
22
110

210
1,593
527
178
3,241
12,307
262
1,195
2,522
961
482
264
1,975
3,281
221
6,440
77
3,125
26
92

279
1,662
456
160
2,967
12,357
238
1,119
2,502
962
486
304
1,973
3,513
146
6,186
94
3,007
20
96

327
1,573
380
169
2,852
12,275
343
2,253
2,547
993
450
267
1,733
3,792
96
7,390
78
2,946
29
122

248
1,795
358
140
2,767
13,028
288
1,386
2,507
923
450
289
1,475
4,228
92
7,697
82
3,003
52
95

27,136

40,622

40,217

39,971

41,426

40,598

40,742

38,982

38,525

40,615

40,901

C anada.......................................................

3,467

3,393

3,787

3,721

3,812

3,967

3,862

4,158

4,432

3,840

4,553

Latin America:
A rgentina........................................
Bahamas 2 ......................................
B razil...............................................
Chile......................................................
Colom bia..............................................
C u b a................................................
M exico..................................................
P a n a m a ............................................
P e ru .................................................
U ruguay..........................................
Venezuela..........................................
Other Latin American republics...
Netherlands Antilles and Surinam.
O ther Latin A m erica.......................

631
540
605
137
210
6
831
167
225
140
1,078
860
86
44

750
796
920
134
200
7
919
194
190
128
1,067
744
78
408

800
564
732
126
168
7
975
217
177
126
1,079
791
61
403

592
700
127
167
7
1,044
204
178
114
941
791
65
463

781
456
745
137
207
7
1,029
231
152
115
1,130
742
70
532

766
806
816
142
221
6
1,132
282
124
112
1,420
769
63
556

914
824
860
157
247
7
1,284
279
135
120
1,468
880
71
361

847
593
819
178
219
7
1,323
281
144
120
1,460
947
69
470

895
1,011
961
174
238
8
1,343
326
154
115
1,636
1,026
61
792

1,001
2,019
837
185
238
7
1,322
401
159
121
1,737
1,115
69
638

1,078
1,316
773
224
227
6
1,374
408
160
121
2,297
1,149
63
560

5,560

6,534

6,226

6,283

6,334

7,215 ! 7,6

7,477

8,741

9,850

9,755

39
675
318
98
108
177
15,843
192
438
171
1,071

38
790
289
141
176
159
8,126
219
545
146
958

43
810
356
103
140
146
8,003
217
541
140
1,139

40
802
349
99
254
173
7,680
213
482
143
1,165

37
779
363
105
169
279
7,061
198
479
163
1,139

40
764
383
71
160
330
6,726
210
497
180
1,138

38
757
372
85
133
327
6,954
195
515
247
1,202

38
735
389
152
186
337
6,417
222
570
336
1,306

39
715
416
183
175
311
7,440
204
604
471
1,196

38
641
452
133
240
302
8,305
180
595
607
1,445

39
571
453
175
305
275
8,690
253
642
536
1,941

19,131

11,588

11,640

11,401

10,771

10,500

10,826

10,690

11,752

12,938

13,878

24
12
115
21
768

29
15
169
21
803

41
10
100
27
683

34
11
132
19
765

34
10
103
26
747

63
14
109
24
824

35
11
114
87

72
11
97
42
837

72
12
119
30
1,044

52
17
148
42
1,335

68
15
83
43
1,500

939

1,037

862

961

919

1,034

1,056

1,059

1,277

1,593

1,709

3,027
51

3,202
61

3,124
57

3,106
62

3,169
59

3,183
55

3,131
59

2,986
74

2,917
66

2,849
60

2,979
52

T otal.

Total.
Asia:
China, People’s Rep. of (China M ainland
China, Republic o f (Taiwan).................. .
H ong K ong ..................................................
In d ia...............................................................
Indonesia.......................................... ............
Israel...............................................................
J a p a n .............................................................
K o rea.............................................................
Philippines....................................................
Thailand........................................................
O th e r.............................................................
Total.
Africa:
Egypt..............
M orocco........
South Africa.
Z aire...............
O th e r..............
T otal.
O ther countries:
A ustralia.........
All other..........
Total.....................

3,077

3,263

3,181

3,168

3,228

3,238

3,190

3,059

2,984

2,909

3,031

Total foreign countries.

59,310

66,436

65,914

65,504

66,490

66,552

67,284

65,426

67,711

71,745

73,827

951
307
156

1,099
309
81

1,125
289
72

1,183
298
70

1,403
299
66

1,610
290
62

1,628
271
57

1,537
256
64

1,404
228
61

863
218
62

840
217
51

1,962 |

1,955

1,855

1,693

1,142

1,109

68,514 ' 69,239

67,281

69,404

72,888

74,936

International and regional:
International3.....................
Latin American regional.,
O ther regional4..................
T o tal.............

1,413

1,488

1,487

1,552

1,768

G rand total.

60,724

67,925

67,400

67,057

68,258

For notes see the following page.




JUNE 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 67

8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY— Continued
(End o f period. Amounts outstanding; in millions of dollars)
Supplementary data 5
1972

1971

1973

1971

1972

1973

Area and country

Area and country

Dec.»

Dec.

Apr.

Dec.

Apr.

Other Western Europe:
C yprus..........................................
Iceland..........................................
Ireland, Rep. o f ..........................

2
11
16

2
9
15

3
9
17

9
12
22

62

Other Latin American republics:
Bolivia..........................................
Costa R ica...................................
Dominican R epublic.................
E cu ad o r........................................
El Salvador..................................
G uatem ala...................................
H aiti..............................................
H onduras.....................................
Jam aica........................................
N icaragua....................................
Paraguay.................................... .
Trinidad & T o b ag o ...................

55
62
123
57
78
117
18
42
19
50
17
10

53
70
91
62
83
123
23
50
32
66
17
15

87
92
114
121
76
132
27
58
41
61
22
20

65
75
104
109
86
127
25
64
32
79
26
17

68
86
118
92
90
156
21
56
39
99
29
17

Other Latin America:
Bermuda......................................
British West Indies...................

( 2)
32

( 2)
23

( 2)
36

127
100

244
109

O ther Asia:
A fghanistan................................
B ahrain........................................
Burm a..........................................
C am bodia...................................
Ira n ..............................................
Ira q ..............................................
Jo rd a n ..........................................

19
21
10
5
59
10
2

17
18
5
2
88
9
2

25
24
2
3
93
10
4

19
23
17
3
114
26
4

22
24
( 7)
2
124
( 7)
6

1 Includes Bank for International Settlements and European Fund.
2 Bermuda included with Bahamas through Dec. 1972.
3 D ata exclude “ holdings o f dollars” o f the International M onetary
Fund but include IM F gold investment until Feb. 1972, when investment
was terminated.

Dec.

Apr.

Dec

Other Asia—C ont.:
K uw ait...................................
20
L aos........................................
3
L ebanon.................................
46
M alaysia................................
23
Pakistan.................................
33
Ryukyu Islands (incl. O kinaw a)6 29
Saudi A rab ia........................
79
Singapore..............................
35
Sri Lanka (C eylon).............
4
Syria.......................................
4
Vietnam.................................
159

16
3
60
25
58
53
80
45
6
6
185

39
2
55
54
59

36
3
55
59
93

28
3
62
58
105

344
77
5
4
135

236
53
6
39
98

334
141
13
5
88

O ther Africa:
Algeria...................................
Ethiopia (incl. E ritre a ).. . .
G h a n a ....................................
K enya....................................
L ib eria..................................
Libya......................................
N igeria...................................
Southern R hodesia.............
Sudan.....................................
T anzania................................
Tunisia...................................
U g an d a.................................
Z am bia..................................

23
11
8
9
23
274
46
2
1
6
9
3
13

31
29
11
14
25
296
56
2
5
6
7
10
7

32
57
10
23
30
393
85
2
3
11
10
7
28

51
75
28
19
31
312
140
1
3
16
11
19
37

111
79
20
23
42
( 7)
78
2
3
12
7
6
( 7)

All other:
New Z ealand........................

23

27

30

34

39

Apr. Dec . r

4 Asian, African, and European regional organizations, except BIS and
European Fund, which are included in “ Europe.”
5 Represent a partial breakdown o f the am ounts shown in the “ other”
categories (except “ Other Eastern Europe” ).
6 Included in Japan after Apr. 1972.
7 N ot available.

LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions o f dollars)

End o f period

Total

To
inti.
and
regional

To foreign countries

Total

Official
institu­
tions

Country or area

Other
Banks1 foreign­
ers

Ger­
many

United
K ing­
dom

Other
Europe

Total
Latin
America

Japan

Other
Asia

All
other
coun­
tries

1970................................
1971.................................
1972—Dec. 2..................

1,703
902
/ l , 000
\ 1,018

789
446
562
580

914
457
439
439

695
144
93
93

165
257
259
259

53
56
87
87

110
164
165
165

42
52
63
63

26
30
32
32

152
111
136
136

385
3
1
1

137
87
32
32

62
9
10
10

1973—A pr......................
M ay....................
Ju n e ....................
July.....................
Aug.....................
Sept.....................
Oct......................
Nov.....................
D ec.....................

1,397
1,379
1,467
1,525
1,530
1,502
1,473
1,469
1,487

684
688
769
768
775
758
735
753
761

713
691
697
757
755
744
738
717
726

329
313
311
311
322
318
312
313
310

274
274
274
305
305
302
305
287
296

111
104
113
141
127
123
122
117
121

164
164
164
164
165
165
165
165
165

68
68
68
68
68
68
68
67
66

239
231
233
265
265
263
265
246
245

128
115
125
145
143
145
140
138
151

1
1
2
2
2
2
2
2
5

98
96
94
93
95
84
81
80
78

16
16
10
19
17
18
18
19
18

1974—Jan......................
Feb......................
M ar.p .................
A p r.p .................

1,497 '
1,500
1,576
1,682

801
888
969
1,027

696
612
607
655

310
259
259
294

275
267
261
272

111
86
87
89

165
165
165
165

65
58
45
56

236
231
232
231

139
109
111
133

2
2
2
2

78
35
39
50

11
13
13
18

1 Excludes central banks, which are included with “Official institutions.”




2 D ata on the two lines shown for this date differ because o f changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.

A 68

INTL. CAPITAL TRANSACTION S OF TH E U.S. □ JU N E 1974
10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES
(End o f period; in millions o f dollars)
1973
Apr.

Europe:
Belgium-Luxembourg........................
Sw eden.................................................

June

May

July

Aug.

1974
Sept.

Oct.

Nov.

D e c .r

J a n .r

7
165
37
290
85
5

7
165
38
400
85
5

7
235
34
423
86
5

7
235
33
437
91
5

Feb.

Mar.*5 Apr.p

United K ingdom ................................
O ther W estern E urope.....................
Eastern E u ro p e..................................

6
135
44
300
79
5

6
135
43
281
85
5

6
135
43
280
85
5

6
135
42
275
85
5

6
135
37
236
85
5

7
165
37
247
85
5

T o ta l............................................

569

555

554

547

504

546

588

700

789

808

845

835

854

561

560

560

560

560

560

560

567

582

597

832

847

848

1
6

1
6

1
6

4
3

8
3

9
3

9
3

11
3

11
3

11
3

11
3

11
3

11
3

7

7

7

7

11

12

12

14

14

14

14

14

14

Asia:
Jap an ....................................................
O ther A sia..........................................

5,978
10

5,978
10

5,977
10

5,977
9

5,949
9

5,950
11

5,950
11

5,143
11

4,552
11

4,066
11

3,718
11

3,703
11

3,531
11

T o ta l............................................

5,988

5,988

5,988

5,987

5,959

5,961

5,961

5,154

4,563

4,077

3,729

3,714

3,542

183

183

183

183

183

158

158

158

158

158

157

157

157

25

25

25

25

25

25

25

25

25

25

25

25

25

7,333

7,318

7,317

7,308

7,241

7,261

7,303

6,617

6,131

5,678

5,602

5,592

5,440

176
27

142
27

72
27

1
28

1
45

21
45

6
47

1
47

1
48

20
49

51
49

217
49

141
44

Latin America:
Latin American republics.................
O ther Latin A m erica........................

International and regional:
International...................................
Latin American regional.............

7
260
34
439
90
5

7
260
33
460
89
5

202

169

100

29

46

66

53

48

49

69

100

267

185

7,535

7,487

7,417

7,337

7,287

7,327

7,356

6,665

6,179

5,747

5,702

5,859

5,625

T o tal............................................
G rand to ta l................................

7
260
32
450
91
5

N ote . —D ata represent estimated official and private holdings o f m arketable U.S. Treasury securities with an original m aturity o f more than 1

year, and are based on benchm ark surveys o f holdings and regular monthly
reports o f securities transactions (see Table 14).

11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
Payable in dollars

Payable in foreign currencies

Loans to—
End o f period

Official
institu­
tions

B anks1

Others

Collec­
tions
out­
stand­
ing

Total
Total
Total

Accept­
ances
made
for acct.
o f for­
eigners

Other

Total

Foreign
govt, se­
Deposits curities,
with for­ coml.
eigners and fi­
nance
paper

Other

1970................................. 10,802
/13,170
1Q*71 2
\ 13,272
/15,471
1Q79 3 r
\15,676

10,192
12,328
12,377
14,625
14,830

3,051
4,503
3,969
5,674
5,671

119
223
231
163
163

1,720
2,613
2,080
2,975
2,970

1,212
1,667
1,658
2,535
2,538

2,389
2,475
2,475
3,269
3,276

3,985
4,243
4,254
3,204
3,226

766
1,107
1,679
2,478
2,657

610
842
895
846
846

352
549
548
441
441

92
119
173
223
223

166
174
174
182
182

1973—A p r.' .................
May r .................
June r .................
J u ly r ...................
Aug . r .................
Sept. r .................
O ct.r...................
N ov . r .................
D ec.r ..................

18,367
18,550
18,825
19,012
18,978
18,725
19,298
19,588
20,719

17,548
17,696
17,987
18,149
18,091
17,948
18,438
18,797
20,057

6,826
6,933
7,318
7,024
6,973
6,809
6,983
7,070
7,718

146
163
205
162
176
160
216
252
271

3,928
3,813
4,070
3,926
4,029
3,918
3,989
4,084
4,589

2,753
2,956
3,043
2,936
2,768
2,731
2,778
2,733
2,859

3,815
3,824
3,881
3,871
3,948
4,070
4,099
4,287
4,306

3,483
3,623
3,984
3,922
3,716
3,718
3,774
3,788
4,155

3,424
3,317
2,804
3,332
3,454
3,351
3,582
3,652
3,877

819
854
839
863
887
777
861
790
662

460
499
552
561
488
459
510
512
428

207
237
140
151
151
143
187
131
119

152
118
147
151
248
175
163
148
115

1974—Jan.......................
Feb......................
M a r.? .................
A p r.P ..................

21,081
22,968
25,664
26,559

20,279
22,124
24,817
25,702

7,413
7,949
9,082
9,587

303
303
421
361

4,429
4,992
5,808
6,157

2,680
2,654
2,853
3,069

4,386
4,426
4,641
4,805

4,107
4,554
5,125
5,810

4,373
5,195
5,969
5,501

802
844
846
857

467
594
543
589

162
121
160
99

173
129
144
169

1 Excludes central banks, which are included with “ Official institutions.”
2 D ata on second line differ from those on first line because (a) those
claims o f U.S. banks on their foreign branches and those claims o f U.S.
agencies and branches o f foreign banks on their head offices and foreign
branches, which were previously reported as “ Loans” , are included in




“ Other short-term claims” ; and (b) a number o f reporting banks are included
in the series for the first time.
3 D ata on the two lines shown for this date differ because o f changes
in reporting coverage. Figures on the first line are comparable in cover­
age with those shown for the preceding date; figures on the second line
are comparable with those shown for the following date.

JU N E 1974 □ INTL. CAPITAL TR ANSACTION S OF TH E U.S.

A 69

12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End o f period. Amounts outstanding; in millions of dollars)

Area and country

1973

1972
D ec.r

Ju ly r

A ug.r

Europe:
A ustria.......................................................
Belgium-Luxembourg............................
D en m ark ...................................................
F inlan d ......................................................
F ran ce........................................................
G erm any...................................................
G reece........................................................
Ita ly ............................................................
N etherlands..............................................
N o rw ay .....................................................
P o rtu g al.....................................................
Spain...........................................................
Sw eden.......................................................
S w itzerland...............................................
T u rk ey ........................................................
United K in g d o m ....................................
Y ugoslavia.................................................
O ther W estern E urope...........................
U .S.S.R......................................................
O ther Eastern E u ro p e............................

120
59
118
330
321
29
255
108
69
19
207
164
125
6
997
22
20
41
49

10
96
56
134
434
349
28
278
101
79
18
272
224
208
7
1,077
12
20
56
84

1974

Sept.1

18
107
67
125
368
281
20
278
155
70
14
251
184
206
6
1,357
10
21
42
83

14
190
52
114
413
313
16
242
144
67
18
183
166
234
6
1,304
10
26
46
97

N ov.r

O c t.r

D e c .r

Jan.

Feb.

M ar.*

Apr.*

15
150
50
97
461
366
26
282
132
74
23
183
155
242
8
1,236
8
34
49
87

14
145
53
89
525
392
23
363
172
82
22
189
177
203
16
1,210
19
26
51
72

11
148
48
108
621
311
35
316
133
72
23
222
153
176
10
1,456
10
27
46
59

14
134
50
106
649
342
41
313
139
85
25
208
135
240
11
1.490
9
19
29
64

36
143
60
93
682
382
36
330
147
91
25
180
106
338
9
1,621
15
20
36
65

20
216
76
97
743
395
37
495
174
76
37
284
121
260
16
2,009
12
22
33
80

40
183
57
115
721
355
47
504
174
86
29
318
132
327
18
1,626
13
28
30
65

T o tal...................................................

3,067

3,542

3,664

3,654

3,678

3,843

3,985

4,104

4,416 |

5,203

4,865

C an ad a...........................................................

1,914

2,168

2,186

1,909

2,210

1,979

1,960

1,880

2,037 , 2,243

2,190

Latin America:
A rgentina...................................................
Bahamas 1.................................................
B razil..........................................................
C hile...........................................................
C olom bia...................................................
C u b a...........................................................
M exico.......................................................
P a n a m a ....................................................
P e ru ............................................................
U ru g u ay ....................................................
Venezuela..................................................
O ther Latin American republics..........
Netherlands Antilles and S u rin a m ....
O ther Latin A m erica.............................

379
519
649
52
418
13
1,202
244
145
40
383
388
14
36

431
522
965
36
420
13
1,386
223
180
34
454
373
48
71

442
488
915
50
422
13
1,348
262
176
35
441
394
38
91

455
623
879
40
423
13
1,309
252
178
39
430
409
31
91

469
702
837
80
423
15
1,368
273
208
45
436
431
23
137

485
612
826
125
413
13
1,337
263
204
47
469
465
17
124

498
873
900
151
397
12
1,370
266
178
55
517
490
13
140

521
577
953
136
425
11
1,344
294
186
58
482
542
17
356

539
1,041
958
155
428
11
1.418
297
184
51
510
546
19
461

679
1,284
1,112
180
459
13
1,423
345
194
44
586
600
29
268

686
1,148
1,180
193
467
13
1.627
390
224
38
627
617
20
260

T o tal...................................................

4,480

5,157

5,115

5,171

5,448

5,401

5,861

5,904

6,619 ! 7,216

7,488

1
194
93
14
87
105
,152
296
149
191
300

7
198
220
18
91
133
,753
348
134
188
352

6
183
116
17
77
133
,791
336
129
185
350

7
141
130
19
81
145
5,801
348
121
179
361

22
128
121
14
89
145
5,746
372
105
206
349

36
117
124
16
96
155
6,034
369
118
225
377

31
140
147
16
88
166
6,400
403
181
273
394

24
119
169
16
105
153
,466
432
189
322
466

19
147
189
15
107
140
6,960
477
182
364
560

27
183
172
19
97
165
,855
502
197
405
521

19
231
179
18
71
140
8,599
555
223
434
691

Asia:
China, People’s Rep. o f (China M ainland)
China, Republic o f (T aiw an)...............
Hong K o n g..............................................
Ind ia......................................................... .
Indonesia...................................................
Israel..........................................................
Ja p a n .........................................................
K o rea....................................................... .
Philippines................................................
Thailand....................................................
O th e r.........................................................

5,584

7,442

7,321

7,331

7,297

7,666

8,238

8,463

9,159

10,142

11,160

Africa:
Egypt........................................................
M orocco.................................................. .
South A frica............................................
Z aire..........................................................
O th e r.........................................................

21
4
143
13
118

44
5
150
43
149

41
5
151
49
173

43
157
48
146

38
4
150
51
163

40
7
147
61
155

35
5
129
60
159

42
4
133
56
178

40
4
134
67
175

42
21
131
61
210

44
9
153
79
192

T o tal..................................................

299

391

419

405

406

410

388

413

420

466

477

Other countries:
A ustralia...................................................
All other....................................................

291
40

271
40

230
41

218
36

223
36

251
36

243
43

279
37

268
49

328
64

318
59

T o tal.................................................

11

T otal..................................................

330

310

271

254

259

287

286

316

317

392

377

Total foreign countries...............................

15,674

19.011

18.977

18.724

19.297

19.587

20.718

21,080

22.967

25.663

26.558

International and regional.........................

3

2

1

1

1

1

1

G rand to ta l......................................

15,676

19.012

18.978

18.725

19.298

19.588

20.719

1 Includes Bermuda through Dec. 1972.
N ote .—Short-term claims are principally the following items payable
on demand or with a contractual maturity o f not more than 1 year: loans
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for




1
21,081

1

1

1

22.968

25.664

26.559

their own account or for account o f their customers in the United States ;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.

A 70

INTL. CAPITAL TRANSACTIONS OF TH E U.S. □ JU N E 1974
13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions o f dollars)
Type

Country or area

Payable in dollars
End of
period

Total

Loans to—
Other
Banks * foreign­
ers

Other
long­
term
claims

Payable
in
foreign
curren­
cies

United
K ing­
dom

Other
Europe

Latin
C anada America

Other
Asia

Japan

All
other
countries

Total

Official
institu­
tions

1970................... 3,075
1971................... 3,667
/4,954
19722 r.............. \5,029

2,698
3,345
4,539
4,555

504
575
833
836

236
315
430
430

1,958
2,455
3,276
3,289

352
300
375
435

25
22
40
40

71
130
145
145

411
593
704
701

312
228
406
406

1,325
1,458
1,996
2,012

115
246
319
353

548
583
881
900

292
429
503
514

1973—A p r.r . ..
M ay r . ..
Ju n er . ..
July r. . . .
A ug.r. . .
S ept.r. ..
O ct.r . . .
N o v .r. ..
D ec.r . ..

5,436
5,523
5,609
5,628
5,524
5,410
5,593
5,788
5,862

4,940
5,020
5,100
5,119
5,012
4,885
5,037
5,248
5,310

903
932
978
957
1,002
1,010
1,041
1,127
1,129

544
545
550
554
514
508
538
555
571

3,492
3,543
3,572
3,609
3,496
3,367
3,458
3,566
3,610

447
455
464
455
466
456
476
463
480

49
48
45
54
46
70
80
78
72

122
131
131
128
137
131
130
138
140

907
923
980
1,029
1,007
976
1,012
1,059
1,099

477
511
523
517
404
418
491
484
489

2,007
2,006
2,002
1,982
1,963
1,941
1,980
2,088
2,072

341
335
316
315
309
256
262
255
247

1,030
1,058
1,096
1,122
1,157
1,186
1,203
1,246
1,282

552
558
561
535
548
501
514
516
533

1974—Jan ........
Feb , . ..
M a r.p ...
A p r.P ...

5,803
5,873
6,054
6,660

5,252
5,270
5,436
6,018

1,115
1,166
1,225
1,550

559
580
642
721

3,578
3,525
3,569
3,747

472
524
542
566

79
79
76
76

137
144
146
190

1,102
1,158
1,263
1,546

484
457
473
478

2,033
2,061
2,131
2,344

253
249
250
246

1,284
1,293
1,298
1,328

509
511
493
529

1 Excludes central banks, which are included with “ Official institutions.”
2 D ata on the two lines shown for this date differ because o f changes in
reporting coverage. Figures on the first line are comparable in coverage

with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date,

14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)

M arketable U.S. Treas. bonds and notes 1

U.S. corporate
securities 2

Foreign bonds

Foreign stocks

Net puirchases or sales

Total

Intl.
and
regional

Total

Official

1971 r .....................
197 2
1973 r .....................

1,672
3,316
305

130
57
-1 6 5

1,542
3,258
470

1,661
3,281
465

1974—Jan.-Apr.P

-5 5 4

136

-691

-6 8 0

1973—Ap r
M ay r ........
Ju n e ..........
Ju ly ...........
Aug............
Sept...........
O c t.r .........

31
-4 8
-7 1
-7 9
-5 1
40
29
-6 9 1
, -4 8 6

-9
-3 3
-6 9
-7 1
17
20
-1 3
-5
1

40
-1 5
-1
-9
-6 8
20
42
-6 8 6
-4 8 7

,

20
31
166
-8 2

-4 5 2
-7 6
-1 0
-1 5 2

N o v .r...

.

D ec.r ........

1974—Ja...............n
Feb............
Mar.p
Apr.P........

-4 3 2
-4 5
157
-2 3 4

16
*
-2 8
8
15
-7 2 2
-506
-4 7 2
-3 7
-1 7 1

Sales

-1 1 9 14,593
- 2 3 19,073
6 18,543

13,158
15,015
13,810

1,435
4,058
4,733

Sales

Net pur­
chases or
sales

Pur­
chases

1,687
1,901
1,474

2,621
2,961
2,467

-9 3 5
- 1 ,0 6 0
-9 9 3

- 1,385
2,532
1,729

1,439
2,123
1,554

-5 7
409
176

Sales

Net pur­
chases or
sales

Other

-1 1

5,644

4,958

687

377

1,229

-8 5 3

770

750

21

23
-1 5
-1
-9
-3 9
12
27
36
19

1,566
1,142
1,087
1,320
1,328
1,174
1,807
1,948
1,336

1,040
1,101
899
898
864
963
1,722
1,692
1,359

525
41
188
422
464
212
86
256
-2 3

117
142
125
101
96
67
97
104
144

292
152
103
207
157
101
336
317
209

-1 7 5
-9
22
-1 0 6
-6 1
-3 4
-2 3 8
-2 1 3
-6 5

121
137
123
108
117
115
129
156
159

112
125
111
107
125
105
131
178
144

9
12
12
1
-8
10
-2
-2 2
15

19
-3 9
-1 0
19

1,715
1,200
1,669
1,060

1,453
1,188
1,472
844

262
12
198
216

71
100
102
103

364
145
398
323

-2 9 2
-4 5
—296
-2 1 9

209
206
167
189

207
206
183
153

2
-1
-1 6
36

1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions o f foreign countries.
2 Includes State and local govt, securities, and securities o f U.S. Govt,
agencies and corporations. Also includes issues o f new debt securities




Net pur­ Pur­
chases or chases
sales

Pur­
chases

Foreign

sold abroad by U.S. corporations organized to finance direct investments
abroad.
N ote . —Statistics include transactions of international and regional
organizations.

JU N E 1974 □ INTL. CAPITAL TRANSACTION S OF TH E U.S.

A 71

15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)
G er­
many

N et pur­
chases or France
sales ( —)

N ether­ Switzer­
lands
land

Period

Pur­
chases

Sales

1971.......................
1972.......................
1973 r .....................

11,626
14,361
12,762

10,894
12,173
9,978

731
2,188
2,785

87
372
439

131
-5 1
2

219
297
339

168
642
685

United
King­
dom

Other
Europe

Total
Europe

-4 9
561
366

71
137
274

627
1,958
2,104

-9 3
-7 8
99

Latin
Canada America

Asia

Other

37
-3 2
-1

108
256
577

52
83
5
10

1974—Jan.-A pr. *

3,182

2,789

393

142

-1

163

102

21

46

474

-5 8

-3 0

-3

1973—A pr............
M ay..........
Ju n e..........
July r .........
Aug. r........
Sept...........
Oct. r .........
Nov. r . . . .
Dec . r ........

868
778
766
880
972
948
1,369
1,482
873

728
898
632
564
631
734
1,272
1,088
878

141
-1 2 0
134
316
341
214
96
394
-4

21
-2
2
67
53
63
6
106
30

9
-4 3
-2 3
-1 9
1
6
-7
27
9

-8
-1 4
7
25
60
18
5
54
32

53
-2 2
52
80
57
54
-3 4
68
-6 4

-1 4
-3 8
15
28
40
15
68
67
-2 5

46
3
21
28
34
14
25
6
7

107
-1 1 6
74
210
245
169
62
327
-1 2

34
-7
8
19
10
*
-2 6
-1 8
-8

-1 0
-1 6
-2
11
11
27
16
-9
-4

5
11
55
71
81
21
41
108
34

5
8
-2
5
-6
-3
4
-1 4
-1 6

1974—Jan.............
Feb............
M ar.*........
A pr.*........

974
741
893
575

801
585
844
559

173
156
49
16

68
39
14
22

4
5
-2 6
17

37
52
40
35

43
40
24
-5

27
-5
14
-1 4

23
33
25
-3 5

201
163
91
19

-2 7
*
-2 1
-1 0

-4 2
1
9
2

33
-9
-2 9
3

9
1
-1
2

1 Includes international and regional organizations.

16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Period

Total

France

G er­
many

1971.......................
1972.......................
1973.......................

703
1,871
1,948

15
336
201

35
77
-3 3

1974—Jan.-A pr.*

295

65

28

N ether­ Switzer­ United
lands
land Kingdom

-2 1
*
10

39
148
52

16

*

-2 2 4

*

*

274

199
2
*
1
2
11
1
-2 0 9
-1 8 3

*
*
*
*
*
*
*
*

*
*
10
*
*
*
*
*
*

68
-6 3
59
150
24
-3 9
-1 0 3
-3 3
-3

-1 0 4
-1 1 9
-1
*

*
*
*

*
*
*

*

*

20
-4 6
215
86

37
82
49

-2

36

116

-1 4

230

1974—Jan............
91
Feb............ - 1 4 4
M ar.* . . . .
149
Apr.* , . ,
200

3
1
1
60

25
*
*
3

*
*
-2
*

23
*
6
8

-9 6
120
-1 9
-1 5
57
14
-1 4
76
60

94
22
-2
7
10
12
1
5
32

98
215
-2 0
-5 2
94
26
86
122
152

16
7
7
3
-1
-1
4
-2 1
*

4
1
-1
4
4
1
1
3
16

117
44
-6 9
23

-9
-1 5
-6
17

159
30
-7 1
111

14
-2
-1
4

1
-5
6
-1

N o te .—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new

Other Intl. and
countries regional

*
2
*

631
1,293
1,204

123
-2
-1 1
-1 3 8
-1 9

106

Africa

-2
323
588

39
315
473

65
76
-3
13
-5
-1
46
28
37

Asia

19
22
44

327
357
275

2
-4
-3
-5 7
1
*
*
11
10

Ju n e ..........
Ju ly ...........
Aug...........
Sept...........
O c t.r .........
Nov . r. . . .
D ec . r ........

Latin
Canada America

216
135
307

33
1
6
*
31
2
53
4
9

385
161
54

Total
Europe

-1
74
-1 9

*
-1
*
*
1
*
1
-2
4

1973—A pr............

Other
Europe

debt securities sold abroad by U.S. corporations organized to finance di­
rect investments abroad.

17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA

18.
FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS

(In millions o f dollars)

(Amounts outstanding; in millions o f dollars)

Period

Total

Intl.
and
re­
gional

Total
foreign
coun­
tries

Eu­
rope

C anada

Latin
Amer­ Asia
ica

Af­
rica

Other
coun­
tries

-5 7
-6 6
3

32
29
37

-5

7

1971 .................
1972..................
1973 r ...............

—992
-6 5 1
-8 1 8

—310
-9 0
139

—682
-5 6 1
-9 5 7

31
492
-1 4 1

—275
-6 5 1
-5 6 9

-4 6
-6 9
-1 2 0

-3 6 6
-2 9 6
-1 6 8

1974-Jan-Apr*

-8 3 2

9

-8 4 1

-2 1 4

-6 6 0

-2 0

52

1973—A p r . . ..
M ay r . .
Ju n e . . .
July---A u g ....
Sept.r . .
O ct.r. ..
Nov*r. .
D e c.. ..

-1 6 6
3
34
-1 0 5
-6 9
-2 5
-2 4 0
-2 3 6
-5 0

16
11
7
3
5
4
4
9
51

-1 8 2
-8
27
-1 0 8
-7 5
-2 8
-2 4 3
-2 4 5
-1 0 1

22
-2 1
10
-1 3
-2 1
-2 8
-2 5
-4 7
-4 5

-1 9 3
-1 2
6
-9 3
-4 4
8
-1 4 8
-8 9
-1 1

-6
6
13
-1 3
-4
-8
-8
-6
-1 5

-5
6
-1 3
9
-8
-1
-6 4
-1 0 4
-3 4

*
-1
1
*
*
*
1
*
2

*
14
9
2
3
2
1
*
3

1974—Ja n .......
Feb___
M ar.* ..
A p r.* . .

-2 9 1
-4 6
-3 1 2
-1 8 3

-4
6
4
3

-2 8 7
-5 2
-3 1 5

-8 1
-6 2
-2 4
-4 7

-2 0 4
-1 1
-2 8 8
-1 5 7

-2
-9
-1 5
6

-1
32
10
12

-1
-4
*
*

2
1
3
*




-1 8 6

End of
period

Credit
balances
(due to
foreigners)

D ebit
balances
(due from
foreigners)

1970—D ec...............................

349

281

1971 __M ar..............................
June..............................

511
419
333
311

314
300
320
314

325
312
286
372

379
339
336
405

310
316
290
333

364
243
255
231

June.............................

N ote . —D ata represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.

A 72

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1974
19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
Claims on U.S.

Location and currency form

IN ALL FO R EIG N C O U N TRIES
Total, all currencies............................

Payable in U.S. d o lla rs.

IN U N ITE D K IN G D O M
Total, all currencies...........

Payable in U.S. dollars.

IN BAHAMAS A N D CAYM ANS i
Total, all currencies..............................


For notes see p. A-76


Month-end

Total

Total

Parent
bank

Claims on foreigners

Other

Total

Other
branches
of parent
bank

1971- -Dec..
1972- -Dec..

61,253
80,034

4,791
4,735

2,310
2,124

2,481
2,611

54.678
73,031

1973— M ar..
A pr..
M ay.
June.
July.
Aug..
Sept..
O c t..
N ov..
D ec..

89,141
88,565
90,388
96,107
100,987
102,392
108,080
111,087
117,325
121,866

4,258
3,882
4,185
4,925
5,350
5,109
4,806
4,802
5,808
4,881

1,976
1,661
1.915
2,325
2,502
2,286
1.916
1,831
2,848
1,882

2,283
2,221
2,270
2,601
2,848
2,823
2,890
2,970
2,961
3,000

82,012
81,821
83,158
87,786
92,071
93,470
98,681
101.789
106,041
112,240

1974—J a n ..
F eb..
M ar..

124,000
127,24C
136,983

4,605
4,696
7,986

1,552
1,893
5,383

3,054 114.789
2,802 117,481
2,603 123,823

1971—D e c
1972—D e c

40,137
54,058

4,534
4,473

2,303
2,102

2,231
2,371

35,026
48,768

1973—M ar..
A pr..
M ay.
June.
July.
Aug..
Sept..
O c t..
N ov..
D ec..

56,894
55,685
56,118
59,984
62,235
63,553
66,361
6 8 ,40C
73,637
79,437

3,953
3,558
3,900
4,575
4,775
4,502
4,386
4,356
5,336
4,427

1,945
1,633
1,!
2,276
2,467
2,227
1,865
1,789
2,787
1,844

2,009
1,924
2,012
2,298
2,308
2,275
2,521
2,567
2,549
2,583

51,996
51,138
51,068
54,117
56,058
57,670
60,362
62,461
66,595
73,244

1974—J a n ..
F eb..
M ar..

82,018
83,907
92,838

4,166
4,311
7,581

1,515
1,838
5,299

2,651 76,101
2,473 77.679
2,281 83,332

1971- -Dec..
1972- -Dec..

34,552
43,684

2,694
2,234

1,230
1,138

1,464 30,996
1,096 30,430

1973— M ar..
A pr..
M ay.
June.
July.
Aug..
Sept..
O c t..
N ov..
D ec..

49,459
48,971
4 8 ,86C
51,203
53,996
52,880
55,842
57,306
61,897
61,732

2,051
1,661
1,743
1,875
2,500
1,877
1,473
1,833
2,230
1,789

1,129
794
909
1,012
1,492
935
604
879
1,181
738

922
868
834
864
1,008
942
870
954
1,049
1,051

1974— J a n ...
F eb..
M ar..

63,757
63,585
68,076

1,484
1,477
3,070

521
616
2,319

964 60,185
861 59,792
751 63,020

1971—D ec..
1972—D ec..

24,428
30.381

2,585
2,146

21,493
27,787

4,135
4,326

1973— M ar..
A pr..
M ay.
June.
July.
Aug..
Sept..
O c t..
N ov..
D ec..

32,530
31,729
30,809
32,763
33.381
32,807
34,251
35,511
39,096
40,323

1,952
1,539
1,654
1,784
2,193
1,538
1,348
1,681
2,042
1,642

30,056
29,675
28.569
30,286
30,464
30.569
32.062
33.062
36,218
37,816

1974—Jan ..
F eb..
M ar..

42,131
41,762
46,062

1,368
1,384
2,967

39,932
39,409
42,212

1971—D ec..
1972—D ec..

8,475
13,091

1,282
1,496

505
225

777 7,101
1,272 11,419

1973—M ar..
A pr..
M ay.
June.
J u ly .
Aug..
Sept..
O c t..
N o v ..
D ec..

13,243
13,039
14,090
15,614
16,466
19,341
20,673
20,698
21,503
23,771

1,200
1,395
1,488
1,909
1,927
2,260
2,280
1,976
2,525
2,001

79
282
261
402
347
576
489
272
824
313

1,121
1,113
1,227
1,507
1,579
1,684
1,791
1,704
1,702
1,688

1974—Jan..
24,071
25,657
F e b .,
M ar.............. 228,444

2,011
1,882
3,239

228
170
1,727

Other
banks

Offi­
N on­
cial
bank
insti­
for­
tutions eigners

Other

11,210 24,525
11,717 36,738

1,167 17,775
1,665 22,910

1,784
2,268

12,163
12,399
13,116
13,149
14,934
15,289
16,778
17,721
18,362
19,207

1,893
1,993
1,875
1,805
1,934
2,012
2,147
2,239
2,108
2,503

25,121
25,683
26,753
27,879
29,048
30,156
31.672
32,352
33,496
34.673

2,870
2,862
3,046
3,395
3,567
3,813
4,593
4,496
5,475
4,745

19,501 57,100
20,341 57,163
22,268 60,435

2,733 35,455
2,957 37,020
3,030 38,090

4,605
5,064
5,174

6,648 17,986
8,083 26,907

864 9,518
1,128 12,651

577
817

13,184
13,390
14,038
14,505
15,118
16,272
17,093
17,419
18,427
19,815

945
989
1,149
1,292
1,407
1,380
1,613
1,583
1,706
1,766

13,256 40,082
13,769 40,185
15,665 43,141

20,915
1,
2.024 21,701
1,997 22,548

1,751
1,918
1,925

5,690 16,211
5,659 23,983

476 8,619
609 10,179

862
1,020

5,783
5,437
5,725
5,279
6,274
6,849
8,022
7,970
8,552
8,773

656
646
610
604
646
677
659
685
700
735

10,849
10,912
11,194
11,716
12,350
12,372
13,035
13,247
13,743
13,811

1,122
1,185
1,334
1,506
1,574
1,580
1,879
1,954
2,859
2,183

907 14,359
916 14,853
887 15,235

2,087
2,317
1,986

12,762
17,976

4,596
5,485

350
447

4,324
4,034
3,943
3,900
4,042
4,887
5,399
5,769
6,273
6,509

19,928
20,042
18,776
20,341
20,137
19,134
19,759
20,336
22,650
23,899

5,805
5,600
5,851
6,045
6,286
6,549
6,904
6,956
7,296
7,409

520
514
586
693
723
699
840
768
835
865

6,825
6,902
8,130

25,098
24,415
25,475

8,010
8,093
8,608

830
969
882

3,784
6,965

3,316
4,454

92
175

11,782
11,399
12,274
13,448
14,253
16,642
17,890
18,198
18,412
21,307

7,190
6,374
6,874
7,915
8,459
9,846
10,596
10,618
10,367
12,302

4,592
5,026
5,400
5,533
5.795
6.796
7,294
7,580
8,045
9,005

261
244
328
256
286
439
504
524
566
463

1,783 21,581
1,713 23,262
1,512 24,594

12,232
13,293
14,660

9,349
9,969
9,934

479
513
611

46,286
46,124
45,783
47,821
49,923
49,423
52,489
53,518
56,808
57,761

8,143
8,043
8,178
8,118
8,852
9,660
10,315
11,223
11,874
12,829

42.835
41,745
41,414
44,953
46,155
46.012
48,084
49,477
51,976
55,857

29,615
28,682
27.836
30,457
30,964
30,545
31,767
32,595
34,992
39.013

1,054
1.023
1,015
1,037
1,123
1,193
1,186
1,223
1,302
1,587

28,997
29,130
28,254
30,223
30,652
29,525
30,774
31,617
33.813
34,442

9,123 35,796
9,209 34.813
10,596 36,302

JU N E 1974 □ INTL. CAPITAL TRANSACTION S OF TH E U.S.

A 73

19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions o f dollars)
To foreigners

To U.S.
Total

Total

Parent
bank

Other

Total

Other
branches
o f parent
bank

Other
banks

N on­
Offi­
bank
cial
for­
insti­
tutions eigners

Other

M onth-end

5,513 8,735
8,486 11,483

2,097 ............ 1971- -D ec.
2,634 ............ 1972- -D ec.

13,774
13,182
13,399
13,716
14,421
15,031
15,831
16,262
16,420
17,711

3,140 ............1973- -M a r.
3,212
3,423
3,651
3,917
.July
4,140
4,652
3,688
5,641
5,125

9,547 17,959
10,119 19,399
10,474 21,550

4,759 ............ 1974- -J a n .
4,947
Feb.
5,320

4,433
6,913

4,928
6,467

1,276 ............ 1971- -D ec.
1,459 ............ 1972- -D ec.

31,879
30,902
31,104
34,401
35,153
35,458
37,260
37,622
41,598
43,694

7,639
7,623
7,259
7,247
7,005
6,165
6,242
6,337
6,290
7,327

7,426
7,146
7,116
7,090
7,421
7,487
8,067
8,422
8,724
9,629

1,593 ............1973- -M ar.
1,657
1,725
1,783
1,882
July
2,092
2,263
2,230
3,107
2,608

12,755 44,997
12,909 44,853
15,051 49,065

7,172
7,809
8,205

10,062
11,128
12,159

2,475 ............ 1974—Jan.
2,466
2,794

19,137
24,776

4,464
6,453

5,126
7,042

763 ............1971- -D ec.
997 ............ 1972- -D ec.

27,918
27,623
26,987
29,151
30,797
30,266
31,963
33,169
36,052
35,063

7,367 8,066
7,485 7,364
7,304 7,669
7,565 7,899
7,793 8,234
6,730 8,565
6,929 8,947
7,118 9,153
7,680 9,424
8,056 10,248

1,086 ............1973- -M a r.
1,133
1,258
. May
1,310
1,414
1,508
1,759
1,805
2,657
1,990

61,255
80,035

3,107
3,559

662
1,000

2,445 56,051
2,559 73,842

89,140
88,565
90,389
96,106
100,987
102,392
108,079
111,087
117,326
121,866

4,064
4,028
4,432
4,478
4,368
4,607
4,728
4,680
4,776
5,070

1,209
1,041
1,080
1,005
1,200
1,083
1,180
1,298
1,084
1,158

2,854
2,987
3,352
3,473
3,169
3,524
3,548
3,382
3,692
3,912

123,969
127,240
136,983

5,319
5,853
6,661

1,738
2,009
2,131

3,581 113,891
3,844 116,440
4,530 125,002

18,533 67,852
18,942 67,979
21,043 71,936

41,980
56,375

2,670
3,104

507
848

2,163 38,034
2,256 51,811

6,624 22,050
8,178 30,253

60.513
59,077
59.513
62,833
64,456
65,496
68,604
70,058
75,735
80,318

3,543
3,497
3,891
3,938
3,775
4,057
4,146
4,135
4,190
4,488

1,032
884
915
866
1,036
943
1,021
1,139
928
993

2,511
2,613
2,977
3,071
2,739
3,114
3,125
2,996
3,262
3,495

82,281
84.514
93,355

4,820
5,349
6,090

1,609
1,857
1,929

3,211 74,986
3,493 76,699
4,161 84,471

34,552
43,684

1,660
1,456

111
113

1,550 32,128
1,343 41,232

3,401
2,961

49,459
48,971
48,860
51,203
53,996
52,880
55,842
57,306
61,897
61,732

1,858
1,969
2,028
1,957
1,875
2,080
2,125
2,026
2,197
2,431

234
164
170
122
163
171
161
129
143
136

1,624
1,805
1,857
1,835
1,711
1,909
1,964
1,897
2,054
2,295

46,516
45,868
45,575
47,936
50,707
49,293
51,957
53,475
57,042
57,311

3,164
3,397
3,614
3,321
3,883
3,731
4,118
4,036
3,886
3,944

63,726
63,585
68,076

2,429
2,573
3,167

346
269
353

2,083 59,356
2,303 58,956
2,814 63,096

4,350 36,996
4,193 35,489
4,587 37,836

7,679
8,160
8,456

10,332
11,112
12,217

24,845
30,933

1,412
1,276

23
72

1,389 23,059
1,203 29,121

2,164
2,008

14,038
17,478

3,676
5,349

3,181
4,287

374 ............ 1971- —Dec.
536 ............ 1972- —Dec.

33,805
32.960
32,051
33,491
33,803
32.960
34,886
35,342
39,527
39,658

1,676
1,735
1,809
1,731
1,661
1,846
1,866
1,831
1,940
2,173

194
119
138
102
148
148
137
103
119
113

1,481
1,616
1,671
1,629
1,513
1,698
1,729
1,727
1,821
2,060

31,533
30,684
29,635
31,185
31,549
30,433
32,213
32,781
36,032
36,646

2,128 18,232
2,318 17,599
2,225 16,906
2,234 18,318
2,316 18,639
2,213 18,566
2,245 19,836
2,515 20,155
2,468 23,059
2,519 22,135

6,230
6,221
5,877
5,971
5,855
4,995
5,110
4,934
4,971
5,839

4,942
4,546
4,626
4,663
4,738
4,660
5,022
5,177
5,534
6,152

596 ............ 1973- —M ar.
542
607
575
593
681
807
730
1,555
839

40,979
40,930
45,579

2,200
2,346
2,927

329
243
329

1,871 37,884
2,103 37,579
2,598 41,708

2,846 22,971
2,729 21,464
3,063 24,300

5,806
6,342
6,694

6,262
7,044
7,650

895 ............ 1974- —Jan.
1,006
945

8,477
13,091
i
1

1
J
I
7
\

81,936
81,325
82,534
87,977
92,702
93,645
98,699
101,719
106,909
111,672

55,377
53,923
53,897
57,113
58,799
59,347
62,196
63,693
68,438
73,221

10,743 31,059
11,344 42,531
11,916
12,232
12,892
12,918
14,634
15,627
16,609
17,253
17,673
18,231

8,433
8,251
8,418
8,376
9,219
10,237
10,627
11,312
11,825
12,571

46,926
46,495
47,016
51,860
54,072
54,493
57,624
59,131
63,274
65,636

9,320
9,416
9,227
9,483
9,575
8,494
8,635
9,073
9,542
10,094

IN ALL FO R E IG N COUN TRIES
. . . Total all currencies,

.Payable in U.S. dollars

IN U N IT E D K IN G D O M
. . .Total, all currencies

1,941 ............ 1974—Jan.
2,057
1,813

750
1,220

7,539
11,703

1,649
1,964

4.766
9,:395

1,124
1,344

188 ............ 1971- —Dec.
168 ............1972- -D ec.

1,304
1,126
1,364
1,480
1,339
1,521
1,608
1,663
1,559
1,517

11,682
11,537
12,396
13,807
14,803
17,410
18,464
18,463
19,363
21,803

1,611
1,672
1,944
2,272
2,691
3,917
4,321
4,591
4,744
5,526

8,549
8,224
8,980
10,167
10,484
11. 691
12,255
11,902
12,857
14,453

1,522
1,642
1,472
1,368
1,628
1,803
1,887
1,969
1,762
1,824

258 ............ 1973- -M a r.
375
330
326
323
409
601
572
582
451

1,848
2,166
2,197

21,782
23,026
25,692

5,293
5,617
6,591

14,569
15,248
16,793

1,920
2,161
2,309

441 ............ 1974—Jan.
465
.Feb.
555
.M ar.


http://fraser.stlouisfed.org/
For notes see p. A-76.
Federal Reserve Bank of St. Louis

Location and currency form

.Payable in U.S. dollars

IN BAHAM AS A N D CAYM ANS i
. . .Total, all currencies

A 74

INTL. CAPITAL TRANSACTIONS OF TH E U.S. □ JU N E 1974

20. DEPOSITS, U.S. TREAS. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT

21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions o f dollars)

(In millions o f dollars)
Payable in
Payable in dollars foreign currencies

Assets in custody
End o f
period

Deposits

U.S. Treas.
securities i

Earm arked
gold

1971...............
1972................

294
325

43,195
50,934

13,815
215,530

1973— M a y ..
June..
Ju ly ...
A u g ...
Sept...
O c t....
N o v ...
D e c ....

289
334
280
259
250
426
420
251

58,015
57,545
57,054
55,855
55,407
54,766
52,998
52,070

15,511
15,486
15,464
15,455
15,437
317,122
17,104
17,068

1974—J a n ....
F e b .. .
M ar...
A p r ...
M ay. .

392
542
366
517
429

49,582
50,255
51,342
52,642
54,195

17,044
17,039
17,037
17.026
17,021

1 M arketable U.S. Treasury bills, certificates o f in­
debtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2 The value o f earm arked gold increased because o f the
change in par value o f the U.S. dollar in May 1972.
3 The value o f earm arked gold increased because o f the
change in par value o f the U.S. dollar in Oct. 1973.
N ote .—Excludes deposits and U.S. Treasury securities
held for international and regional organizations. Ear­
marked gold is gold held for foreign and international
accounts and is not included in the gold stock o f the
United States.




End of
period

Total

Short­
Short­
term D eposits term
D eposits invest­
invest­
ments 1
ments 1

United
King­
dom

Canada

1969.....................

1,491
1,141
/1,648
1Q71
H
ap
2
17/1—JJvC.^ • • • \ 1,507

1.062
697
1,092
1,078

161
150
203
127

183
173
234
234

86
121
120
68

663
372
577
580

534
443
587
443

10*70
iy /z—TSop 7 . . . fl,965
\2,255

1,446
1,792

169
55

307
340

42
68

702
872

485
535

1973—M ar.........
A pr..........
M ay........
Ju n e........
July .........
Aug.........
Sept.........
O ct...........
N ov..........
D ec.r . . . .

3,087
3,047
3,194
3,209
3,272
3,361
3,224
2,907
3,152
3,098

2,292
2,278
2,420
2,549
2,494
2,585
2,510
2,244
2,517
2,518

156
118
130
74
136
82
78
66
64
37

414
416
433
453
475
486
476
449
435
430

225
234
211
134
167
209
161
148
136
113

1,105
1,044
1,010
1,064
1,070
1,068
1,088
992
1,044
1,053

969
887
1,011
882
959
940
891
881
922
775

1974— J a n .r . . . .
Feb '
M ar.........

2,809
3,199
3,652

2,237
2,564
2,987

59
65
99

364
367
348

149
203
218

1,050
1,178
1,332

772
868
1,029

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 D ata 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 ote .—D ata 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
Tables 22.

JU N E 1974 □ INTL. CAPITAL TRANSACTION S OF TH E U.S.

A 75

22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(End o f period. Amounts outstanding; in millions o f dollars)
Liabilities to foreigners
Area and country

Claims on foreigners

1973

1972
Mar.

Dec.

1972
Sept.

June

Dec.**

1973

Dec.

M ar.

June

Sept.

Dec

p

E urope:
A ustria........................................................
Belgium-Luxembourg..............................
D enm ark....................................................
F inland.......................................................
F rance.........................................................
Germany, Fed. Rep. o f...........................
G reece................................
Italy ................................
Netherlands.......................
N orw ay..........................
Portugal....................................
S pain............................
Sweden........................................................
Sw itzerland.........................
Turkey................................
United K in g d o m ......................................
Y ugoslavia..................................................
Other W estern E u ro p e ............................
Eastern E urope..........................................

2
83
7
4
167
157
15
121
109
14
4
81
13
111
4
1,063
7
2
3

3
75
8
4
161
147
19
107
102
14
5
82
23
134
3
901
16
2
6

2
81
19
4
165
182
24
103
113
13
4
72
25
88
3
747
17
3
22

2
129
18
7
165
193
33
108
115
10
12
79
32
147
6
833
22
3
24

3
131
9
7
168
229
35
116
134
9
13
77
47
108
14
928
28
3
31

19
73
29
25
228
195
35
202
84
16
19
157
57
82
48
1,184
12
12
42

14
121
26
21
288
245
36
204
101
18
19
159
45
87
23
1,426
14
9
40

17
109
20
21
315
273
40
201
96
19
25
140
49
90
14
1,402
18
9
92

15
112
21
31
275
265
52
201
119
21
24
169
53
64
17
1,491
21
12
73

17
105
46
44
303
283
51
240
118
18
50
245
70
100
33
1,488
49
15
104

T o tal....................................................

1,967

1,812

1,687

1,938

2,090

2,519

2,897

2,951

3,035

3,380

C anada............................................................

215

268

250

236

255

965

1,366

1,305

1,339

1,255

Latin America:
Argentina....................................................
B razil...........................................................
Chile.............................................................
Colom bia....................................................
C uba............................................................
M exico..........................................
P an am a.......................................................
P e ru ..............................................................
Uruguay......................................................
Venezuela...................................................
Other L.A. republics...............................
Bahamas i ..................................................
Neth. Antilles and Su rin am ...................
Other Latin A m erica...............................

29
35
18
7
1
27
18
4
7
21
45
371
10
4

30
42
17
8
*
34
17
4
5
23
46
310
10
9

24
47
13
7
*
37
18
6
3
23
47
415
11
19

24
42
13
8
*
36
17
10
2
24
58
364
7
20

38
64
20
9
*
13
15
2
50
67
419
6
22

79
172
34
39
1
181
85
36
4
92
95
585
13
34

74
176
31
40
1
194
84
33
5
107
96
571
12
44

60
183
29
36
1
203
83
34
5
101
103
766
11
90

65
208
34
43
1
185
102
37
5
104
127
746
9
105

75
230
42
40
1
235
124
47
5
143
134
630
12
213

T o tal....................................................

595

555

670

626

768

1,450

1,467

1,705

1,771

1,930

Asia:
China, People’s Republic o f (China
M ainland)..............................................
China, Rep. o f (Taiwan).........................
Hong K ong................................................
India..............................................
Indonesia....................................................
Israel............................................................
Ja p a n ...........................................................
K orea................................
Philippines..................................................
T hailand......................................................
Other A sia..................................................

32
26
12
7
16
13
213
21
16
5
152

32
33
17
7
16
16
244
19
26
5
156

31
35
13
7
15
9
283
18
20
6
140

36
31
18
7
15
11
345
20
17
6
179

42
32
15
14
14
24
296
37
17
6
240

*
65
33
34
48
31
475
68
59
23
206

1
62
33
32
53
34
520
53
63
25
195

11
77
36
29
51
27
506
46
64
24
207

48
77
38
32
58
28
641
56
70
28
207

11
120
41
36
61
40
837
109
73
28
238

T o tal....................................................

513

571

577

684

737

1,042

1,072

1,079

1,283

1,594

A frica:
E gypt...........................................................
South A frica..............................................
Zaire.............................................................
Other A frica..............................................

32
8
1
62

37
6
12
67

20
6
12
67

11
6
19
97

25
14
19
128

16
52
8
93

25
56
16
89

23
51
15
97

28
60
19
95

18
62
19
128

T o tal....................................................

104

121

105

134

186

170

184

187

202

228

Other countries:
A ustralia.....................................................
All o th e r.....................................................

45
14

54
11

72
11

94
9

118
13

83
23

81
24

75
26

90
22

97
25

T otal....................................................

59

65

83

103

131

107

105

101

111

122

International and regional..........................

*

*

*

*

*

1

1

1

*

1

G rand to ta l........................................

3,453

3,392

3,373

3,720

4,167

6,254

7,092

7,329

7,742

8,510

1 Includes Bermuda.
N ote .— Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.




44

D ata exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates,

A 76

INTL. CAPITAL TRANSACTIONS OF TH E U.S. o JU N E 1974

23. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions o f dollars)
Claims

End o f period

Country or area

Total
liabilities
Total

U nited
Kingdom

Other
Europe

Canada

Brazil

Mexico

Other
Latin
America

Japan

Other
Asia

Africa

All
other

1969— D ec..

2,304

2,363

152

442

562

177

77

420

142

271

75

46

1970— M ar..
J u n e ..
Sept..
D ec...

2,358
2,587
2,785
3,102

2,744
2,757
2,885
2,950

159
161
157
146

735
712
720
708

573
580
620
669

181
177
180
183

74
65
63
60

458
477
586
618

158
166
144
140

288
288
284
292

71
76
73
71

47
54
58
64

1971— M ar...
June. ,
Sept..
D ec.1

3,177
3,172
2,939
3,159
3,138

2,983
2,982
3,019
3.118
3.118

154
151
135
128
128

688
687
672
705
705

670
677
765
761
767

182
180
178
174
174

63
63
60
60
60

615
625
597
652
653

161
138
133
141
136

302
312
319
327
325

77
75
85
86
86

72
74
75
85
84

1972— M ar..
June.
Sept..
D ec.1

3,093
3,300
3,448
3,540
3,866

3,191
3,255
3,235
3,370
3,493

129
108
128
163
187

713
713
695
715
758

787
797
805
833
868

175
188
177
184
187

60
61
63
60
64

665
671
661
659
703

137
161
132
156
134

359
377
389
406
399

81
86
89
87
82

85
93
96
109
111

1973—M ar..
June.
Sept..
Dec.p

4,045
4,030
4,253
4,115

3,635
3,708
3,860
3,962

151
174
211
284

816
823
840
794

882
893
894
972

165
146
147
145

63
65
73
80

796
819
827
820

124
138
152
141

413
416
475
471

101
104
104
112

125
131
137
144

1 D ata on the two lines shown for this date differ because o f changes shown for the preceding date; figures on the second line are comparable
in reporting coverage. Figures on the first line are comparable with those
with those shown for the following date.

Notes to Tables 19A and 19B on pages A-72 and A-73, respectively:
1 Cayman Islands included beginning Aug. 1973.
2 Total assets and total liabilities payable in U.S. dollars am ounted to
$26,538 million and $26,811 million, respectively, on M ar. 31, 1974.
N o te .—Components may not add to totals due to rounding.




F or a given m onth, total assets may not equal total liabilities because
some branches do not adjust the parent’s equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.

JUNE 1974 □ CENTRAL BANK RATES

A 77

CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Rate as o f May 31, 1974

R ate as o f May 31, 1974
Country

C ountry

Per
cent

M onth
effective

Per
cent

M onth
effective

A rgentina.
A u stria .. . .
Belgium. ..
Brazil.........
C anada___

18.0
6.50
8.75
18.0
8.25

Feb.
M ay
Feb.
Feb.
Apr.

1972
1974
1974
1972
1974

Italy .....................
Jap a n ...................
M exico................
N etherlands........
N orw ay...............

9 .0
9 .0
4.5
8.0
5.5

M ar.
Dec.
June
Dec.
M ar.

1974
1973
1942
1973
1974

D en m ark ...........................
F ran ce................................
G ermany, Fed. Rep. of.
Is ra e l..................................

10.0
11.0
7 .0

Jan. 1974
Sept. 1973
June 1973

Sweden...............
Switzerland........
United Kingdom
Venezuela...........

6.0
5.5
11.75
5 .0

Apr.
Jan.
May
Oct.

1974
1974
1974
1970

N ote .—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 o f its credit operations. O ther rates for some of
these countries follow:
Argentina —3 and 5 per cent for certain rural and industrial paper, de­
pending on type o f transaction;
B razil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;

Japan —Penalty rates (exceeding the basic rate shown) for borrowings

from the central bank in excess o f an individual bank’s q u o ta ;
t United Kingdom —The Bank’s minimum lending rate, which is the
average rate of discount for Treasury bills established at the most recent
tender plus one-half per cent rounded to the nearest one quarter per cent
above.
Venezuela —2 per cent for rediscounts of certain agricultural paper, 4 Vi
per cent for advances against government bonds, and 5 Vi per cent for
rediscounts o f certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.

OPEN MARKET RATES
(Per cent per annum)

France

U nited Kingdom

Canada
M onth
Treasury Day-tobills,
day
3 m o n th s1 m oney2

Prime
Treasury
bank
bills,
bills,
3 months
3 months

G ermany,
Fed. Rep. of

Netherlands

Switzer­
land

Day-today
money

Clearing
banks’
deposit
rates

Day-today
m oney3

Treasury
bills,
60-90
days4

Day-today
money 5

Treasury
bills,
3 months

Day-today
money

Private
discount
rate

1972..........................
1973.........................

3.55
5.43

3.65
5.27

6.06
10.45

5.02
9.40

4.83
8.27

3.84
7.96

4.95
8.92

3.04

4.30
10.18

2.15
4.07

1.97
4.94

4.81
5.09

1973—M ay .............
Ju n e .............
Ju ly ..............
A ug..............
Sept..............
Oct...............
Nov..............
Dec...............

5.08
5.40
5.67
6.47
6.41
6.56
6.48
6.39

4.67
5.00
5.28
5.87
6.31
6.54
6.56
6.58

8.35
8.14
9.06
12.78
12.12
11.37
13.38
13.74

7.45
7.12
8.35
10.98
11.37
10.75
11.76
12.41

8.29
6.66
5.89
9.70
9.13
10.53
8.80
9.57

7.11
6.55
6.25
8.99
9.50
9.50
9.50
9.46

7.71
7.46
7.89
8.87
9.73
10.99
10.96
11.14

5.75
7.00
7.00
7.00
7.00
7.00
7.00
7.00

7.40
10.90
15.78
10.63
9.76
10.57
11.30
11.89

2.89
3.59
5.58
5.92
5.67
5.25
5.29
6.41

3.88
4.28
5.65
7.24
7.97
7.93
7.88
8.75

5.00
5.00
5.00
5.00
5.25
5.25
5.25
5.40

1974—Jan................
Feb...............
M ar..............
A pr...............
M ay .............

6.31
6.10
6.24
7.18
8.22

6.50
6.49
6.50
6.93
7.48

13.67
13.63
14.39
13.20
13.31

12.09
11.94
11.95
11.53
11.36

10.36
8.96
11.31
10.00
10.72

9.25
9.50
9.50
9.50
9.50

13.63
12.48
11.88

7.00
7.00
7.00
5.63

10.40
9.13
11.63
5.33

6.50
6.50
6.00
6.64

9.36
9.73
9.07
9.86

6.00
6.00
6.00

1 Based on average yield o f weekly tenders during month.
2 Based on weekly averages o f daily closing rates.
3 R ate shown is on private securities.
4 R ate in effect at end o f month.




5 M onthly averages based on daily quotations.
N ote . —For description and back data, see “International Finance,”

Section 15 of Supplement to Banking and M onetary S tatistics, 1962.

A 78

EXCHANGE RATES □ JU N E 1974
FOREIGN EXCHANGE RATES
(In cents per unit o f foreign currency)

Period

A ustralia
(dollar)

A ustria
(schilling)

Belgium
(franc)

Canada
(dollar)

D enm ark
(krone)

France
(franc)

Germany
(Deutsche
m ark)

India
(rupee)

Ireland
(pound)

Italy
(lira)

Japan
(yen)

1970.......................
1971......................
1972......................
1973.......................

111.36
113.61
119.23
141.94

3.8659 ,
4.0009
4.3228
5.1649

2.0139
2.0598
2.2716
2.5761

95.802
99.021
100.937
99.977

13.334
13.508
14.384
16.603

18.087
18.148
19.825
22.536

27.424
28.768
31.364
37.758

13.233
13.338
13.246
12.071

239.59
244.42
250.08
245.10

.15945
.16174
.17132
.17192

.27921
.28779
.32995
.36915

1973—M ay..........
Ju n e..........
Ju ly ...........
A ug...........
Sept...........
O ct............
Nov...........
D ec...........

141.50
141.58
141.78
141.48
146.83
148.22
148.22
148.33

4.9082
5.2408
5.8124
5.5917
5.5695
5.5871
5.2670
5.1150

2.5356
2.6643
2.8151
2.7035
2.7089
2.7328
2.5882
2.4726

99.916
100.160
100.049
99.605
99.181
99.891
100.092
100.058

16.241
17.130
18.041
17.521
17.480
17.692
16.744
16.089

22.341
23.472
24.655
23.527
23.466
23.718
22.687
21.757

35.841
38.786
42.821
41.219
41.246
41.428
38.764
37.629

13.340
13.753
13.605
13.220
12.987
12.938
12.767
12.328

253.05
257.62
253.75
247.57
241.83
242.92
238.70
231.74

r . 16961
.16792
.17200
.17423
.17691
.17656
.16904
.16458

.37786
.37808
.37801
.37704
.37668
.37547
.35941
.35692

1974—Jan ............
Feb............
M ar...........
A pr............
M ay..........

148.23
148.50
148.55
148.41
148.44

4.8318
5.0022
5.1605
5.3345
5.5655

2.3329
2.4358
2.5040
2.5686
2.6559

100.859
102.398
102.877
103.356
103.916

14.981
15.570
16.031
16.496
17.012

19.905
20.187
20.742
20.541
20.540

35.529
36.844
38.211
39.594
40.635

11.854
12.131
12.415
12.711
12.841

222.40
227.49
234.06
238.86
241.37

.15433
.15275
.15687
.15720
.15808

.33559
.34367
.35454
.36001
.35847

N ether­
lands
(guilder)

New
Zealand
(dollar)

N orway
(krone)

Portugal
(escudo)

Switzer­
land
(franc)

United
Kingdom
(pound)

Period

M alaysia
(dollar)

Mexico
(peso)

South
Africa
(rand)

Spain
(peseta)

Sweden
(krona)

1970.......................
1971.......................
1972.......................
1973.......................

32.396
32.989
35.610
40.988

8.0056
8.0056
8.0000
8.0000

27.651
28.650
31.153
35.977

111.48
113.71
119.35
136.04

13.992
14.205
15.180
17.406

3.4978
3.5456
3.7023
4.1080

139.24
140.29
129.43
143.88

1.4280
1.4383
1.5559
1.7178

19.282
19.592
21.022
22.970

23.199
24.325
26.193
31.700

239.59
244.42
250.08
245.10

1973—M ay..........
Ju n e..........
J u ly .. . . . .
A ug...........
Sept...........
O ct............
N ov...........
D ec............

40.333
40.865
43.121
43.859
43.361
43.641
41.838
41.405

8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000

'34.538
36.582
38.700
37.596
38.542
40.011
37.267
35.615

132.34
132.40
135.02
135.33
145.07
148.64
147.74
144.34

r 17.219
18.192
18.932
18.145
18.048
18.285
17.872
17.651

4.0050
4.2175
4.4624
4.3243
4.2784
4.3014
4.1155
3.9500

141.65
148.07
148.63
148.52
148.50
148.54
148.45
148.66

1.7224
1.7229
1.7385
1.7553
1.7610
1.7576
1.7479
1.7571

22.567
23.746
24.732
24.070
23.769
23.942
23.019
22.026

r 31.531
32.757
35.428
33.656
33.146
33.019
31.604
31.252

253.05
257.62
253.75
247.57
241.83
242.92
238.70
231.74

1974—Jan ............
Feb............
M ar...........
A pr............
M ay..........

40.094
40.489
41.152
41.959
42.155

8.0000
8.0000
8.0000
8.0000
8.0000

34.009
35.349
36.354
37.416
38.509

139.08
140.31
143.40
145.12
146.07

16.739
17.351
17.734
18.170
18.771

3.7195
3.8567
3.9519
4.0232
4.1036

148.66
148.76
148.88
148.85
148.78

1.7205
1.6933
1.6927
1.7080
1.7409

20.781
21.373
21.915
22.730
23.388

29.727
31.494
32.490
33.044
34.288

222.40
227.49
234.06
238.86
241.37

N ote .—Averages o f certified noon buying rates in N e w Y ork for cable
transfers. F o r description o f rates and back data, see “International Fi­
nance,” Section 15 o f Supplement to Banking and M onetary S tatistics , 1962.




JU N E 1974 □ GOLD RESERVES

A 79

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions o f dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)

End of
period

Esti­
mated
total
world1

Intl.
Mone­
tary
Fund

United
States

Esti­
mated
rest of
world

Algeria

Argen­
tina

41,275
41,160
44,890

4,339
4,732
5.830

11,072
10,206
10.487

25,865
26,220
28,575

191
192
208

140
90
152

239
259
281

714
729
792

1,470
1,544
1,638

791
792
834

82
80
87

64
64
69

85
85
92

5.830
5.826
5.831
5.826
5.826
5.826
6,474
6,476
6.478

10.487
10.487
10.487
10.487
10.487
10.487
11.652
11.652
11.652

31,720

208
208
208
208
208
208
231
231
231

152
152
152
152
152
152
169
169
169

281
281
281
281
281
282
312
212
311

793
793
793
793
793
793
881
881
881

1,603
1,603
1,603
1,603
1,603
1,603
1,781
1,781
1,781

834
834
834
834
834
834
927
927
927

87
87
87
87
87
87
97
97
97

69
69
69
69
69
69
77
77
77

92
92
92
92
92
92
103
103
103

11.652
11.652
11.652 *31,725
11.652

231
231
231
231

169
169

312
312
312
313

882
882
882
882

1,781
1,781
1,781
1,781

927
927
927
927

97
97
97

77
77
77
77

103
103

Japan

Kuwait

Libya

Mexi-

Netherlands

87
94

1970.
1971.
1972.
1973—A pr..
M ay.
June.
J u ly ..
A u g ..
S ep t..
O ct...

44,865

44,880

N ov..

49j850

D ec...

M a r...
Apr.*’.

*49,855

6.478
6.478
6.478
6.478

End of
period

France

Ger­
many,
Fed.
Rep. of

Greece

1974—J a n ....
Feb....

28,545
28,565

India

Iran

Iraq

Aus­
tralia

Italy

Aus­
tria

197 0
197 1
197 2

3,532
3,523
3,826

3,980
4,077
4,459

117
98
133

243
243
264

131
131
142

144
144
156

2,887
2,884
3,130

532
679
801

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

3.834
3.834
3,841
3.835
3.835
3.835
4.261
4.261
4.261

4.468
4.469
4,462
4.469
4.469
4.469
4.966
4.966
4.966

133
133
133
133
133
133
148
148
148

264
264
264
264
264
264
293
293
293

142
142
142
142
142
142
158
158
158

156
156
156
156
156
156
173
173
173

3.134
3.134
3.134
3.134
3.134
3.134
3.483
3.483
3.483

801
802
802
802
802
802
891
891
891

1974—Jan..
Feb.
Mar.
Apr.

4.262
4.262
4.262
4.262

4.966
4.966
4.966
4.966

148
148
r 149

158
158
158

173
173
173

3.483
3.483
3.483
3.483

891
891
891
891

Portu­
gal

Saudi
Arabia

South
Africa

Spain

End of
period

Paki­
stani

Sweden Switzer­
land

Thai­
land

Bel­
gium

Canada

Leb­
anon

China,
Rep. of
(Taiwan)

Den­
mark

Egypt

86

288
322
350

85
85
93

176
184
188

1,787
1,909
2.059

94

350
350
350
350
350
350
388
388
389

93
93
93
93
93
93
103
103
103

188
188
186
184
182
179
198
198
196

2.059
2.059
2.063
2.063
2.065
2.065
2.294
2.294
2.294

389
389
389

103
103
103
103

195

2.294
2.294
2.294
2.294

Turkey

United
King­
dom

Uru­
guay

Vene­
zuela

Bank
for Intl.
Settle­
ments2

1970.
1971.
1972.

54
55
60

902
921
1,021

119
108
117

666
410
681

498
398
541

200
200
217

2,732
2,909
3,158

92
82
89

126
130
136

1,349
775
800

162
148
133

384
391
425

-2 8 2
310
218

1973—A p r.. .
M a y ..
June..
Ju ly ...
Aug.. .
Sept...
Oct__
N ov...
Dec.. .

60
60
60
60
60
60
67
67
67

1,022
1,022
1,022
1,022
1,035
1,036
1,154
1,159
1,163

117
117
117
117
117
116
129
129
129

720
721
724
734
740
738
820
809
802

542
542
542
542
542
542
602
602
602

220
220
220
220
220
220
244
244
244

3,162
3,162
3,162
3,162
3,162
3,162
3,512
3,513
3,513

89
89
89
89
89
89
99
99
99

136
136
136
136
136
136
151
151
151

810
810
810
810
797
797
886
886
886

133
133
133
133
133
133
148
148
148

425
425
425
425
425
425
472
472
472

214
199
205
204
205
213
227
237
235

1974—J a n ....
F eb ....
M ar...
Apr.®.

67
67
67

1,167
1,171
1,176

129
129
129
129

793
783
780
780

602
602
602

244
244
244
244

3,513
3,513
3,513
3,513

99
99
99
99

151
151
151

148

472
472
472

271
277
274
271

1 Includes reported or estimated gold holdings of international and
regional organizations, central banks and govts, of countries listed in
this table, and also of a number not shown separately here, and gold to be
distributed by the Tripartite Commission for the Restitution of Monetary
Gold; excludes holdings of the U.S.S.R., other Eastern European coun­
tries, and China Mainland.
The figures included for the Bank for International Settlements are
the Bank's gold assets net of gold deposit liabilities. This procedure
avoids the overstatement of total world gold reserves since most of the




gold deposited with the BIS is included in the gold reserves of individual
countries.
2 Net gold assets of BIS, i.e., gold in bars and coins and other gold
assets minus gold deposit liabilities.
N o t e .— For back figures and description of the data in this and the
following tables on gold (except production), see “ Gold,” Section 14 of
Supplement to Banking and Monetary Statistics , 1962.

A 80

BANK HOLDING COM PANY GROUPS □ JU N E 1974
BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1973
A. Details for 50 States and District of Columbia

Number of offices

Assets

Deposits

Banks and branches
State, and class of bank

50 States and District
of Columbia—Total.
Member....................
Nonmember..............

Number of
companies1

1,677

Banks

Branches

As a
percentage
of all
commercial
banking
offices

Total

3,097
1,569
1,528

15,374
12,648
2,726

18,471
14,217
4,254

50
29
21

237
181
56

287
210
77

Alaska—T otal.
Member. . . .
Nonmember.

1

4

1

4

Arizona—T otal.
Member........
Nonmember..

6
2
4

Arkansas—Total.
Member..........
Nonmember...

In
millions
of dollars

562,987
501,783
61,204
44.1
56.8
27.4

4,980
4,022
958

5

6.4

5

38.5

245
130
115

251
132
119

21
9
12

42
30
12

California—T otal.
Member............
Nonmember.. . .

45
18
27

Colorado—Total.
Member..........
Nonmember...

Alabama—T otal.
Member..........
Nonmember...

As a
percentage
of all
commercial
bank
assets

In
millions
of dollars

As a
percentage
of all
commercial
bank
deposits

446,567
393,398
53,169
55.4
63.7
35.7

4,165
3,340
825

88

9.6

78

9.8

88

38.9

78

39.2

59.1
46.8
83.2

3,924
2,326
1,598

55.6
44.2
89.1

3,242
1,866
1,376

56.1
44.0
89.1

63
39
24

13.0
18.1
9.0

1,071
858
213

18.8
24.2
10.0

909
717
192

18.5
23.9
10.0

2,997
2,708
289

3,042
2,726
316

85.9
91.5
56.1

82,726
77,537
5,189

93.8
97.0
62.8

66,087
61,635
4,452

93.3
96.7
62.7

130
80
50

25
15
10

155
95
60

46.1
59.0
39.3

6,231
5,271
960

78.1
84.3
55.7

5,224
4,379
845

78.1
83.5
58.4

14
7
7

338
224
114

352
231
121

60.1
67.5
49.6

5,722
4,298
1,424

71.8
80.3
54.4

4,913
3,689
1,224

71.5
80.1
53.9

Delaware—Total.
Member..........
Nonmember...

3
1
2

28
2
26

31
3
28

22.6
33.3
21.9

370
12
358

16.3
23.1
16.1

334
11
323

18.7
23.4
18.6

District of Columbia—Total.
Member.............................
Nonmember......................

3
2
1

37
30
7

40
32
8

30.5
26.7
72.7

990
719
271

24.3
19.1
87.4

844
601
243

24.6
19.0
87.1

Florida—T otal..
Member........
Nonmember..

388
209
179

32
1
31

420
210
210

60.4
73.7
51.2

20,826
15,007
5,819

79.0
88.0
62.4

17,950
12,817
5,133

78.5
87.6
62.3

Georgia—T otal.
Member........
Nonmember..

40
18
22

312
272
40

352
290
62

35.8
68.6
11.1

8,568
7,722
846

59.3
82.0
16.8

6,035
5,333
702

54.1
78.4
16.1

Hawaii—T o tal..
Member........
Nonmember.,

1

66

67

42.9

983

36.1

852

35.9

1

66

67

46.5

983

37.9

852

37.8

Idaho—T o ta l..
Member
Nonmember.

3
2
1

85
84
1

88
86
2

43.6
52.8
5.1

1,027
1,012
15

42.2
50.1
3.6

904
891
13

41.9
49.6
3.6

Illinois—T otal.
Member__ _
Nonmember.

146
58
88

34
17
17

180
75
105

13.4
12.7
14.0

40,257
36,597
3,660

62.5
71.4
27.7

30,946
27,726
3,220

59.4
68.2
28.0

Indiana—Total.
Member........
Nonmember..

26
14
12

232
194
38

258
208
50

21.8
32.1
9.3

6,818
6,032
786

37.3
48.2
13.6

5,185
4,480
705

33.8
43.9
13.7

Iowa—T otal...
Member
Nonmember.

168
49
119

135
54
81

303
103
200

29.2
40.1
25.6

4,555
2,784
1,771

41.4
52.9
30.9

3,802
2,209
1,593

39.7
50.4
30.7

Kansas—Total.
Member
Nonmember.

122
46
76

33
18
15

155
64
91

22.1
26.2
20.0

2,901
1,861
1,040

33.8
40.2
26.4

2,396
1,491
905

32.6
38.7
25.9

Connecticut—Total.
Member..............
Nonmember........

For notes see p. A-83.




54.0
62.3
35.2

JU N E 1974

o

BANK HOLDING COM PANY GROUPS

A 81

BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1973— Continued
A. Details for 50 States and District of Columbia—Continued

Assets

Number of offices
Banks and branches
State, and class of bank

Number of
companies1
Branches

nks

Total

As a
percentage
of all
commercial
banking
offices

In
millions
of dollars

Deposits

As a
percentage
of all
commercial
bank
assets

In
millions
of dollars

As a
percentage
of all
commercial
bank
deposits

Kentucky—Total.
Member..........
Nonmember__

9
4
5

46
40
6

55
44
11

7.2
13.1
2.6

1,042
966
76

11.3
18.2
2.0

763
695
68

9.7
15.9
2.0

Louisiana—Total.
Member............
Nonmember__

17
7
10

106
69
37

123
76
47

16.8
24.3
11.2

4,448
3,522
926

37,9
48.3
20.8

3,446
2,679
767

35.5
45.6
19.9

Maine—T otal..
Member. . . .
Nonmember.

25
13
12

194
94
100

219
107
112

71.3
61.8
83.6

1,450
784
666

72.1
62.9
87.2

1,259
684
575

72.0
62.9
87.1

Maryland—Total.
Member.......... .
Nonmember___

21
10
11

390
237
153

411
247
164

55.1
57.7
51.6

5,475
2,995
2,480

61.6
58.3
66.0

4,608
2,455
2,153

61.2
57.7
65.7

Massachusetts—Total.
Member.................. .
Nonmember............

62
37
25

619
487
132

681
524
157

67.8
72.5
55.9

15,212
13,419
1,793

85.7
89.9
63.7

12,070
10,530
1,540

84.7
88.9
64.1

Michigan—Total.
Member..........
Nonmember...

71
50
21

775
709
66

846
759
87

48.8
56.8
21.9

21,885
20,921
964

69.2
76.0
23.4

18,265
17,403
862

67.8
74.8
23.5

Minnesota—Total.
Member............
Nonmember___

227
106
121

21
12
9

248
118
130

32.5
49.4
24.8

11,192
9,197
1,995

71.6
84.8
41.7

8,656
6,868
1,788

68.3
82.2
41.5

4
3
1

60
59
1

64
62
2

10.2
25.1
.5

1,482
1,469
13

26.4
49.7
.5

1,256
1,245
11

25.6
48.8
.5

Missouri—Total.
Member..........
Nonmember...

194
70
124

100
42
58

294
112
182

33.1
46.3
28.2

12,224
8,616
3,608

66.4
80.2
47.0

9,534
6,413
3,121

63.4
77.2
46.3

Montana—T otal.
Member..........
Nonmember...

65
44
21

8
6
2

73
50
23

45.1
47.2
41.1

1,887
1,647
240

69.0
72.8
50.8

1,634
1,420
214

68.2
71.9
50.8

Nebraska—Total.
Member..........
Nonmember...

127
37
90

28
18
10

155
55
100

30.8
33.3
29.5

3,556
2,745
811

56.4
67.2
36.5

2,916
2,184
732

54.1
64.3
36.7

3
2
1

68
58
10

71
60
11

68.3
68.2
68.8

1,318
1,082
236

66.7
67.5
63.6

1,167
962
205

66,6
67.3
63.3

New Hampshire—Total.
Member......................
Nonmember...............

14
10
4

19
15
4

33
25
8

19.2
20.0
17.0

507
273
234

30.4
26.5
36.9

429
223
206

30.0
25.7
36.5

New Jersey—T otal.
Member..............
Nonmember........

61
51
10

580
553
27

641
604
37

43.7
49.7
14.8

11,919
11,491
428

51.1
57.7
12.6

10,258
9,877
381

50.4
56.8
12.8

New Mexico—Total.
Member................
Nonmember..........

28
15
13

107
66
41

135
81
54

53.8
54.0
53.5

1,978
1,457
521

69.5
72.4
62.3

1,718
1,263
455

69.2
72.0
62.2

117
93
24

2,384
2,259
125

2,501
2,352
149

78.8
80.4
60.1

140,805
136,810
3,995

90.0
94.5
34.5

107,371
104,127
3,244

90.3
93.9
40.7

10
6
4

840
629
211

850
635
215

55.4
84.1
27.6

9,839
8,433
1,406

69.7
90.1
29.5

7,980
6,764
1,216

68.2
89.3
29.4

Mississippi—Total.
Member............ .
Nonmember___

Nevada—Total.
Member........
Nonmember..

New York—Total.
Member............
Nonmember___
North Carolina—Total.
Member......................
Nonmember...............
For notes see p. A-83.




A 82

BANK HOLDING COMPANY GROUPS □ JU N E 1974

BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1973— Continued
A. Details for 50 States and District of Columbia—Continued

Number of offices

Assets

Banks andi branches
State, and class of bank

Number of
companies1
Banks

North Dakota—Total.
Member...................
Nonmember.............

Branches

As a
percentage
of all
commercial
banking
offices

Total

In
millions
of dollars

Deposits

As a
percentage
of all
commercial
bank
assets

In
millions
of dollars

As a
percentage
of all
commercial
bank
deposits

46
19
27

26
6
20

72
25
47

29.8
41.0
26.0

1,094
707
387

42.5
58.0
28.6

962
615
347

42.7
57.5
29.4

125
87
38

677
566
111

802
653
149

39.7
40.7
35.7

16,970
15,439
1,531

49.7
50.8
41.3

13,642
12,324
1,318

48.2
49.2
40.7

53
24
29

18
12
6

71
36
35

13.2
13.7
12.7

4,334
3,853
481

44.6
54.3
18.4

3,538
3,111
427

42.8
52.0
18.6

5
3
2

293
269
24

298
272
26

66.7
93.8
16.6

5,541
5,231
310

82.2
97.4
22.7

4,504
4,247
257

81.1
97.1
21.7

Pennsylvania—Total.
Member................
Nonmember..........

27
16
11

883
783
100

910
799
111

36.8
45.7
15.3

28,504
26,915
1,589

57.8
68.7
15.7

21,453
20,044
1,409

54.0
64.9
15.9

Rhode Island—Total.
Member..................
Nonmember...........

10
4
6

193
112
81

203
116
87

91.4
98.3
83.7

2,820
2,555
265

95.3
99.6
67.4

2,361
2,158
203

95.4
99.6
65.7

South Carolina—Total.
Member....................
Nonmember.............

8
4
4

284
226
58

292
230
62

46.0
61.2
23.9

2,364
1,996
368

54.1
68.1
25.5

1,989
1,667
322

53.5
67.7
25.6

South Dakota—Total.
Member..................
Nonmember...........

40
22
18

77
66
11

117
88
29

43.8
64.7
22.1

1,608
1,396
212

60.9
72.5
29.7

1,434
1,243
191

60.6
72.2
29.6

Tennessee—T otal.
Member.............
Nonmember.. . .

56
20
36

345
233
112

401
253
148

41.0
55.6
28.3

8,948
7,467
1,481

64.1
76.9
34.9

7,285
5,997
1,288

62.2
75.3
34.4

Texas—Total..
Member. . . .
Nonmember.

188
106
82

20
1
19

208
107
101

15.3
17.8
13.4

25,870
22,849
3,021

55.8
65.5
25.1

20,013
17,377
2,636

51.9
62.2
24.8

Utah—T otal...
Member. . . .
Nonmember.

16
8
8

150
111
39

166
119
47

74.8
87.5
54.7

2,579
1,975
604

81.3
87.6
65.9

2,189
1,675
514

80.8
87.4
65.0

Vermont—Total.
Member..........
Nonmember...

2
1
1

7
7

9
8
1

6.1
12.3
1.2

120
75
45

8.9
16.4
5.1

108
68
40

8.9
16.5
5.0

Virginia—Total.
Member........
Nonmember..

65
39

828 104
646
182

932
711
221

71.5
75.7
60.7

11,472
9,547
1,925

78.5
82.0
64.9

9,480
7,797
1,683

77.4
80.8
64.8

242
241
1

251
248
3

34.7
44.4
1.8

3,436
3,407
29

35.1
39.1
2.7

2,864
2,838
26

37.2
41.7
2.9

9
7
2

4.0
5.4
2.1

226
155
71

4.3
4.1
4.8

197
138
59

4.5
4.5
4.6

248
104
144

26.7
40.5
21.4

8,015
5,615
2,400

52.6
66.1
35.5

6,629
4,500
2,129

50.6
64.0
35.1

33
26
7

45.8
47.3
41.2

830
716
114

57.6
59.7
47.5

723
622
101

57.1
59.1
47.2

Ohio—T o tal...
Member. . . .
Nonmember.
Oklahoma—Total.
Member............
Nonmember.. . .
Oregon—Total.
Member
Nonmember.

Washington—Total.
Member................
Nonmember.........

9
7
2

West Virginia—Total.
Member..................
Nonmember...........

9
7
2

Wisconsin—Total.
Member............
Nonmember___

144
48
96

Wyoming—Total.
Member..........
Nonmember...

33
26
7

For notes see p. A-83.




104
56
48

JU N E 1974 □ BANK HOLDING COM PANY GROUPS

A 83

BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1973— Continued
B. Summary totals and comparisons

50 States and District of Columbia
Item

Holding
company
groups

All
commercial
banks

Holding company
groups as a per­
centage of all
commercial
banks

Number of banking offices—Total
Banks........................................
Branches...................................

18,471
3,097
15,374

40,408
14,170
26,238

45.7

Assets (millions of dollars)...........
Deposits (millions of dollars).......

562,987
446,567

835,730
682,353

67.4
65.4

i Data for individual States represent bank holding companies having
subsidiary banks in the respective States rather than bank holding com­
panies whose principal offices are located in such States. Total does not
equal sum of State figures because it has been corrected for duplications;
that is, holding companies that have subsidiary banks in more than one
State are included in the total only once.

N o t e . —Companies listed include those that have reported to the Board
pursuant to the requirements of the Bank Holding Company Act and
include some companies that have filed registration statements but whose
holding company status has not yet been determined by the Board.
(A list showing the names, offices, total assets, and total deposits of
the subsidiary banks in the holding company groups is available upon
request.)

C. Multibank and one-bank classifications
Number
Amount (millions of dollars)
Classification

Offices

Companies
Banks

Branches

Total

Assets

Deposits

Total...........................................................................
Member..................................................................
Nonmember...........................................................

1,677

3,097
1,569
1,528

15,374
12,648
2,726

18,471
14,217
4,254

562,987
501,783
61,204

446,567
393,398
53,169

Multibank..................................................................
Member..................................................................
Nonmember...........................................................

251

1,815
1,071
744

7,513
6,269
1,244

9,328
7,340
1,988

301,015
270,136
30,879

239,148
212,445
26,703

One-bank...................................................................
Member..................................................................
Nonmember...........................................................

1,282

1,282
498
784

7,861
6,379
1,482

9,143
6,877
2,266

261,972
231,647
30,325

207,419
180,953
26,466

14,170

26,238

40,408

835,730

682,353

All commercial banks...............................................
N o te . —This table gives a further breakdown of totals into multibank
and one-bank classifications.
Multibank and one-bank classifications are based on the number of
banks controlled, directly or indirectly, by the top-tiered holding com­




pany. Holding companies that are subsidiaries of other holding companies
are eliminated; therefore, the total number of multibank and one-bank
companies is lower than the total number of bank holding companies
shown in the previous table.

A 84
INSURED

INCOME, EXPENSES, AND DIVIDENDS OF INSURED COMMERCIAL BANKS, 1973
(Income, etc. in thousands, and asset and liability items in millions, of dollars)

Item

Total

New York
City

City of
Chicago

Other

52,786,119

11,078,214

41,707,905

25,459,308

7,483,065

2,147,206

15,829,037

16,248,597

6,947,140

28,260,503

17,755,786

5,301,406

1,524,729

10,929,651

10,504,717

627,066

1,846,641

1,100,123

146,944

112,982

840,197

746,518

249,458
68,434
325,253
39,259
380,729
78,924
134,391

79,381
20,218
127,635
11,491
104,548
8,910
33,202

729,729
215,702
996,603
81,860
540,937
347,258
473,037

1,333,603
639,066
1,477,539
135,767
318,131
504,479
357,574

35,207,643
2,473,707

All other

3,435,147
1,469,540
3,860,146
371,738
1,459,737
1,319,802
1,247,364

1,042,976
526,120
933,116
103,361
115,392
380,231
249,160

2,392,171
943,420
2,927,030
268,377
1,344,345
939,571
998,204

1,058,568
304,354
1,449,491
132,610
1,026,214
435,092
640,630

341,429
1,599,866

2,932
150,720

338,497
1,449,146

319,488
1,236,952

143,034
615,233

11,425
112,685

165,029
509,034

19,009
212,194

44,103,187
8,529,235
1,544,699

9,075,958
1,957,968
310,280

35,027,229
6,571,267
1,234,419

21,532,869
3,785,599
752,022

6,159,310
1,051,426
242,061

1,825,811
230,241
51,138

13,547,748
2,503,932
458,823

13,494,360
2,785,668
482,397

19,742,052

4,365,124

15,376,928

8,961,550

2,433,525

857,902

5,670,123

6,415,378

3,882,926
500,000
252,808
1,773,144
1,195,735
1,252,307
5,430,281

118,320
26,457
48,817
365,593
272,059
258,711
1,352,629

3,764,606
473,543
203,991
1,407,551
923,676
993,596
4,077,652

3,266,315
405,486
144,796
841,793
485,812
670,610
2,218,886

974,228
157,092
46,072
280,168
115,647
236,796
622,295

402,834
18,910
3,972
55.776
30;062
44,217
130,759

1,889,253
229,484
94,752
505,849
340,103
389,597
1,465,832

498,291
68,057
59,195
565,758
437,864
322,986
1,858,766

Applicable income tax es..............................................................
Income before securities gains or losses..................................
N et securities gains or losses ( —) after taxes.........................
E xtraordinary charges ( —) or credits after taxes...................
Less m inority interest in consolidated subsidiaries...............

8,682,932
2,121,402
6,561,530
-27,234
21,551
OJ7

2,002,256
467,492
1,534,764
2,532
6,424
357

6,680,676
1,653,910
5,026,766
-29,766
15,127
302

3,926,439
1,069,746
2,856,693
-17,132
3,602
253

1,323,755
392,678
931,077
-13,722
1,921

321,395
84,411
236,984
-4 ,3 5 8
649

2,281,289
592,657
1,688,632
948
1,032
253

2,754,237
584,164
2,170,073
-12,634
11,525
49

Net income....................................................................................

6,555,188

1,543,363

5,011,825

2,842,910

919,276

233,275

1,690,359

2,168,915

2,419,406
3,697

403,495
1,137

2,015,911
2,560

1,279,528
1,801

352,022
870

100,751

826,755
931

736,383
759

2,121,402

467,492

1,653,910

1,069,746

392,678

84,411

592,657

584,164

-37,169
-368,993

1,111
-49,475

-38,280
-319,518

-31,979
-233,705

-15,070
-55,189

-4 ,0 0 8
-36,295

-12,901
-142,221

-6,301
-85,813

1,715,240

419,128

Operating expenses—Total.........................................................

Salaries and wages o f officers and employees.........................
Officer and employee benefits.....................................................
Interest paid on:
Time and savings deposits.......................................................
Federal funds purchased and securities sold with re­
purchase agreem ent..........................................................
O ther borrow ed m o n ey ...........................................................
Capital notes and debentures.................................................
Occupancy expense o f bank premises, n e t..............................
Furniture, equipm ent, etc.............................................................
Provision for lo an losses.............................................................
O ther operating expenses.............................................................

Income before income taxes and securities gains or losses..........

Cash dividends declared:
O n common s to ck .........................................................................
On preferred s to ck ........................................................................

Memoranda items:

Income taxes applicable to 1973 operating income...............
Tax effect of:
N et securities gains or losses ( —), etc..................................
Transfers—Capital accounts to IRS loan loss reserves 2.
T otal provision fo r incom e taxes , 1973......................................
F ederal.........................................................................................
State and local............................................................................




1,336,525
378,715

359,579
59,549

1,296,112

976,946
319,166

804,062

554,369
249,693

322,419

171,022
151,397

44,108

39,767
4,341

437,535

343,580
93,955

492,050

422,577
69,473

BANKS, 1973 □ JUNE 1974

L o an s:
Interest and fees....................................... ..
Federal funds sold and securities purchased with resale
agreem ent............................................................................
Securities—Interest and dividends: 1
U.S. Treasury securities...........................................................
O th er U.S. G ovt, securities (agencies and corporations)
O bligations o f States and political subdivisions.................
All other securities....................................................................
T rust departm ent incom e...........................................................
Service charges on deposit accounts.........................................
O ther charges, fees, etc.................................................................
O ther operating income:
O n trading account (net).........................................................
O th e r.............................................................................................

All
member
banks

MEMBER

Operating inconu -Total.

Insured
nonmember
banks

AND

Reserve city
All
insured
banks

M em oranda items (cont.):
O ccupancy expense o f bank premises, gross...........................
R ental income from bank p rem ises.....................................
N et security gains or losses ( —) before income taxes............
E xtraordinary charges ( —) or credits before income ta x ---Reserves for losses on lo a n s: 3
B alance a t beginning o f y e a r ...................................................

A dditions due to mergers and absorptions......................
Recoveries credited to reserves..........................................
Transfers to reserves............................................................
Losses charged to reserves....................................................
Transfers from reserves......................................................
B alance a t end o f y e a r ..............................................................
N et loan losses ( —) o r recoveries4 ..........................................
Reserves on securities:
Balance a t beginning o f y e a r ...................................................
A dditions due to mergers and absorptions......................
Recoveries credited to reserves..........................................
Transfers to reserves............................................................
Losses charged to reserves..................................................
Transfers from reserves........................................................
Balance a t end o f y e a r ...............................................................
T o ta l net changes in capital accounts ............................................

2,139,958
366,814
-73,669
30,817

416,242
50,649
2,301
7,766

1,723,716
316,165
-75,970
23,051

1,058,531
216,738
-49,601
4,092

327,550
47,382
-28,792
1,921

67,508
11,732
-8,6 7 3
956

663,473
157,624
-12,136
1,215

665,185
99,427
-26,369
18,959

6,710,273

1,136,394

5,573,879

3,651,810

1,312,920

323,650

2,015,240

1,922,069

39,157
353,189
292,854

7,727
124,801
36,034
2,778

16,608
308,802
1,678,381
1,247,391
33,383

7,6 /5 ,7 0 2

1,318,806

6,296,896

-940,358

4,151,020

-215,076

171,511

53, 768

117,743

56,741

-1,155,434
503
2,061
22,450
5,440
17,244

412,412"

-253,697

509
9,231
3,608
4,499

53,360

120,481

58,374

1,848,947

3,787,424

1,709,357

5,915
149,469
516,760
429,969
18,368

417,366

2,321,242

2,145,876

7,243

49,498

61,002

-28,307

244

562,360

10,693
112,449
683,631
488,534
12,237

-376,085

509
8,987
3,608
4,499

-282,269

28
713
6,233
665
5,204

7,487

50,887

62,107

97,404

1,049,593

2,078,067

5,011,825
334,856
310,390
380,847
43,091
978,917
2,018,471
383,653
870,378

2,842,910
185,077
125,217
155,584
19,515
662,676
1,281,329
266,745
733,548

919,276
98,794

233,275
5,000

90,585
237,824
352,892
61,205
370,022

5,000
2,778
27
100,751
44,534
3,391

1,690,359
81,283
125,217
59,999
16,737
424,825
827,686
161,006
360,135

451,589
58,198
23,965
89,135
5,362
109,776
774,031
345,666
638,565
62,274
58,254

90,724
16,972
8,753
21,235
1,470
14,812
158,516
81,498
139,619
13,248
12,582

360,865
41,226
15,212
67,900
3,892
94,964
615,515
264,168
498,946
49,026
45,672

223,147
18,855
5,029
33,604
1,933
64,709
371,180
142,216
286,441
29,397
26,903

64,904
4,201
1,045
7,322
598
25,368
112,872
34,598
85,133
9,670
8,841

19,196
1,424
312
2,746
184
3,643
29,286
12,444
21,994
2,313
2,256

139,047
13,230
3,672
23,536
1,151
35,698
229,023
95,174
179,313
17,414
15,806

137,719
22,371
10,183
34,296
1,959
30,255
244,335
121,952
212,505
19,629
18,769

1,087,407
13,964

270,986
8,229

816,421
5,735

428,344
178

99,013
13

24,351
9

304,980
156

388,077
5,557

2,168,915
149,779
185,173
225,263
23,576
316,241
737,142
116,908
136,830

JUNE 1974 □ INSURED AND MEMBER

1,543,363
207,979
231,107
306,107
21,124
190,900
404,632
106,592
140,409

Assets, deposits, and capital accounts:
Loans gross (includes Federal funds sold and resale
purchases)................................................................................
U.S. Treasury securities1 ...........................................................
O ther U.S. G ovt, securities (agencies and corporations)1. .,
Obligations o f States and political subdivisions1.................
All other securities1 .....................................................................
C ast assets.......................................................................................
T otal assets 5 ..................................................................................
Time and savings deposits..........................................................
T otal deposits.................................................................................
T otal capital accounts plus total reserves...............................
Equity capital plus to tal reserves..............................................

BANKS, 1973
A 85




28
1,222
15,464
4,273
9,703

173,841

6,555,188
542,835
541,497
686,954
64,215
1,169,817
2,423,103
490,245
1,010,787

For numbered notes see p. A-91.

475
839
6,986
1,167
7,541

-658,089

5,636,371

N et income transferred to undivided profits...........................
Com m on stock sold (n e t)...........................................................
Preferred stock, capital notes, and debentures so ld .............
Prem ium received on new capital stock so ld ...........................
Transfers from loan and securities reserves............................
O ther increases..............................................................................
Dividends declared.........................................................................
Transfers to loan and securities reserve (net o f tax effect)..
O ther decreases..............................................................................

N um ber o f officers and employees................................................
N um ber o f ba n k s..............................................................................

10,693
159,333
1,161,621
817,422
15,015

5,822
79,298
401,671
290,793
13,586

22,430
388,100
2,080,052
1,538,184
46,969

A 86
MEMBER

INCOME, EXPENSES, AND DIVIDENDS, BY FEDERAL RESERVE DISTRICT

Item

Boston

New
Y ork

Phila­
delphia

Cleve­
land

Rich­
m ond

A tlanta

Chicago

M inne­
apolis

St.
Louis

K ansas
City

Dallas

San
Francisco

O perating income—T o t a l...................................................................... 1,658,225 10,141,433 1,920,408 2,916,821 2,320,652 3,058,820 6,372,427 1,308,395 1,109,180 1,785,317 2,246,807 6,869,431
L o an s:
1,458,252 4,823,385
Interest and fees.............................................................................. 1,130,311 7,057,662 1,342,396 1,866,015 1,619,655 1,998,899 4,251,270 818,459 739,702 1,154,497
Fed. funds sold and securities purchased with resale
42,885 111,486 168,137 292,452
85,667
91,894 165,300 364,662
60,045 167,729
60.846 235,538
agreem ent..................................................................................
Securities—Interest and dividends: 1
86,665 139.717 135,728 334,436
69,538 431,218 112,613 236,575 128,316 188,743 418,668 109,954
U.S. Treasury securities................................................................
60,863 137,501
41,446
52,714
37,500
84,798 167,635
60,976
62,746
42,899
29,104 165,238
O ther U.S. G ovt, securities (agencies and c o rp o ra tio n s)...
81,727 145,222 197,796 364,691
108,229 583,978 154,031 273,052 185,976 262,435 467,137 102,756
O bligations o f States and political subdivisions.....................
26,880
11,150
6,879
2,759
61,625
7,495
20,693
6,998
23,528
25,226
8,563
66,581
All other securities..........................................................................
53,604 149,298
46,172
25,034
29,067
71,346 202,739
55,689
63,861
99,352
97,557 450,626
T ru st departm ent incom e.................................................................
220,669
56,049
52,669
26,869
29,484
106,111
98,577
62,767
36,122
55,695
36,822 157,737
Service charges on deposit a cco u n ts..............................................
52,229 216,367
53,175
36,970
34,560
93,434 135,168
58,043
63,355
26,559
51,609 176,735
O th er charges, fees, e tc .....................................................................
O ther operating incom e:
58,494
13,904
10,045
13,105
16,544
12,966
13,478
8,144
21,577
5,245
10,841 154,154
O n trading account (n et)...............................................................
39,095 245,258
24,009
15,964
25,273
61,117 180,868
51,411
42,194
47,197
54,805 661,955
O th e r...................................................................................................
O perating expenses—T o ta l..................................................................
Salaries and wages o f officers and em ployees............................
Officer and employee benefits.........................................................
Interest paid o n:
Time and savings d eposits......................................... ................
Federal funds purchased and securities sold with repur­
chase agreem ent.................................................................. ..
O ther borrow ed m oney................................................................
C apital notes and debentures.....................................................
Occupancy expense o f bank premises, n e t..................................
Furniture, equipm ent, etc................................................................
Provision for loan losses..................................................................
O ther operating expenses........................................................

,406,396 8,442,867 1,614,378 2,396,156 1,912,447 2,553,192 5,389,962 1,091,358
315,582 1,527,993 297,634 433,085 411,365 510,828 884,416 207,483
34,712
90.959 167,415
72,261
72,396
62,037 334,935
62,269
788,367 1,041,035 2,643,690

457,682

452,051

613,401

790,160 2,763,883

222,651
45.960
10,985
90,108
84,363
78,251
378,052

664,061
37,629
22,149
195,515
135,705
112,800
526,582

123,526
8,281
3,874
42,057
36,620
29,626
147,497

85,093
15,470
8,184
25,451
24,642
16,005
105,788

124,199
13,797
8,301
47,969
48,155
43,971
211,923

252,076
30,135
5,534
44,109
55,024
63,057
248,584

552,079
46,419
45,851
257,139
137,745
171,235
592,727

408,205
105,016
303,189
-5 ,0 1 4
1,570

505,628
109,643
395,985
339
2,848

982,465
235,741
746,724
-7 ,9 1 9
-4 0 5
31

217,037
48,658
168,379
311
-7 3 8

194,552
57,702
136,850
-2 ,2 8 6
-5 4

336,805
86,689
250,116
-2 0 6
811
3

391,738
88,909
302,829
-2 ,0 4 4
1,630

867,167
246,484
620,683
-4 7 2

431,670

299,745

399,173

738,369

167,932

134,510

250.718

302,415

620,226

47,463
25

95,315
287

87,620
17

267,921
23

502,787 3,460,158

733,319 1,130,395

151,585 1,108,856
18,804 174,585
5,423
57,385
72,838 402,932
44,165 180,634
49,812 287,530
183,363 907,859

137,226
30,763
17,973
64,875
44,611
36,809
188,899

201,090
36,979
7,591
85,517
72,641
61,707
294,755

142,164
14,721
10,741
79,041
59,371
42,793
291,623

Income before income taxes and securities gains or lo sses..
Applicable income ta x e s.......................................................
Incom e before securities gains or losses...........................
N et securities gains o r losses ( —) after tax es..................
Extraordinary charges ( —) o r credits after tax es...........
Less m inority interest in consolidated subsidiaries.........

251,829 1,698,555
73.847 447,903
177,982 1,250,652
-2,8 3 2 -18,846
653
5, $60
7

306,030
52 ,'573
253,457
724
-443
233

520,665
100,745
419,920
8,479
3,280
9

N et incom e....................................................................................

175,803 1,237,759

253,505

Cash dividends declared:
On com m on sto c k ........
O n preferred sto ck ____
M emoranda items:
Incom e taxes applicable to 1973 operating incom e.............
Tax effect of:
N et securities gains o r losses ( —), etc...........................
Transfers—C apital accounts to IR S loan loss reserves2 .
Total provision fo r income taxes , 1973 .......................................
Federal.........................................................................................
State and lo c a l...........................................................................




-1

20

80,593
33

503,280
878

116,748

204,506
218

112,519
608

141,938
118

297,745
339

60,263
14

73,847

447,903

52,573

100,745

-2,098 -17,867
-17,715 -63,295

-7 9
-13,065

54,034

33,418
20,616

366,741

199,054
167,687

39,429

38,979
450

914,628 1,448,512 1,855,069 6,002,264
153,710 290,924 315,337 1,222,910
51,053 212,276
45,872
28,234

15

105,016

109,643

235,741

48,658

57,702

86,689

88,909

246,484

3,893 -3,881
-13,462 -19,250

-1 ,7 5 3
-19,141

-7 ,1 8 0
-66,071

-8 0 5
-6,531

-1 ,6 6 3
-7,9 2 1

-6 1 9
-8 ,9 9 8

-5,1 9 1
-8 ,2 7 6

-1 ,0 3 7
-75,793

81,885

88,749

162,490

41,322

48,118

91,176

91,089
87

75,657
6,228

79,045
9,704

133,345
29,145

39,166
2,156

31,741
16,377

77,072

67,684
9,388

75,442

75,042
400

169,654

112,726
56,928

BANKS, 1973 □ JUNE 1974

(Incom e,‘etc. in thousands, and asset and liability items in millions, o f dollars)

Memoranda items (cont.):
Rental income from bank premises........................................

Reserves for losses on loans: 3

85,212 462,033
59,101
12,374
-5,481 -39,733
1,204
8,980

72,614
7,739
1,154
-9 5 2

218,218 1,684,227
2,929
26

256,828

15,779
85,739
82,425
786

59,812
422,299
362,347
1,381

236,551 1,805,539

Net loan losses ( - ) or recoveries 4...........................................
Reserves on securities:
Additions due to mergers and absorptions.......................

trancfprrpH tn imrfiviHed nrofits............. .
Preferred, stock capital notes and debentures sold.................
DMminm rA^Aii/AH ah npw ranital stoclc sold. ...................
Ti*oMcforc frAm 1nan and Qpmrities reserves............. .
Transfers to loan and securities reserves (net of tax effect)-----

Assets, deposits, and capital accounts:
Loans gross (including Federal funds sold and resale pur-

capital accounts plus total reserves.................... ............
Equity capital plus total reserves................................................
Number of officers and employees......................... .....................

For numbered notes see p. A-91.

49,190
7,133
207
-1 ,4 3 9

36,020
10,569
-3 ,9 6 9
-34

70,130
22,161
-771
757

85,821
41,712
-7 ,2 4 7
1,642

305,118
47,979
-1 ,3 0 9
-1 8 5

368,809

310,979

149,695

137,753
89

193,215

265,347

843,931

403
19,337
90,900
71,053
3,779

404,617

278,956

743
15,687
83,139
48,295
2,703

327,527

876
29,849
119,267
101,695
2,154

865,921

449
35,992
254,296
125,974
8,952

357,122 1,021,732

301
9,446
45,190
31,398
1,449

171,785

5,992
31,163
19,589
952

154,456

79
17,760
64,358
53,708
1,864

219,840

-66,682 -302,559

-34,310

-51,949

-32,730

-71,846

-90,019

-2 1 ,9 2 6

-13,715

-36,538

3,660

881
'i

29,195

4,818

10,797

18,670

13,905

298
19
20
47

14
1,222
27
1,201

268
1
251

306
1,049
77
1,350

321
1,435
200
1,107

29,203

4,835

10,725

19,119

1,450

24
11
604
70
340

1

10,065
58,090
332,082
226,502
2,800

293,815 1,014,866

-49,670 -168,414

958

3,092

25,800

4,517

19
1,114
25
114
2,308 ..........192

34
139
137
202

214
1,586

12,616

791

i
7,961
3,550
2,276

2,926

27,936

6,142

120,510

128,570

202,436

320,211

389,611

4
42
77
254
1,165

3,889

1,134

116,785

807,486

217,779

283,294

287,822

490,962

431,670
10,719
16,211
31,500
4,981
28,279
204,724
17,231
18,111

299,745
27,066
35,327
46,607
2,954
36,225
113,127
21,787
25,188

421,958

253,505
58,259
24,147
23,456
318
75,500
116,748
16,398
84,260

399,173
38,421
41,951
68,573
3,504
72,038
142,056
22,895
36,751

738,369
20,021
29,485
34,268
10,059
163,250
298,084
76,889
129,517

14,013
1,206
474
2,575
140
3,492
23,119
8,477
18,729
1,911
1,820

87,949
7,310
2,503
13,425
975
30,064
153,101
53,970
119,221
12,970
11,955

17,275
1,944
673
3,645
379
3,528
28,603
13,676
23,469
2,402
2,145

25,048
4,043
1,020
6,230
318
5,572
43,999
21,010
35,968
3,923
3,819

19,829
2,114
984
4,266
108
4,708
33,214
14,369
27,757
2,659
2,508

24,480
3,183
1,334
5,803
314
6,785
43,614
18,257
36,211
3,474
3,297

56,108
7,238
2,643
10,659
900
11,894
93,266
45,736
76,518
7,250
6,877

11,293
1,870
873
2,408
108
3,055
20,458
8,337
16,722
1,655
1,586

9,568
1,520
597
1,871
43
2,021
16,469
8,052
13,588
1,277
1,153

40,406
212

160,603
331

40,017
281

56,633
456

57,465
379

69,682
607

110,607
936

27,833
431

20,733
501

175,803 1,237,759
4,905 113,039
17,297
8,559
3,900 109,091
1,721
1,040
34,018 284,947
80,626 504,158
71,706
18,650
12,164 380,504

109
28,988
83,688
78,025
6,292

167,932
6,140
4,857
7,558
3,758
13,924
60,277
10,118
13,264

134,510
16,069
24,766
4,578
1,144
10,684
47,488
7,864
7,829

250,718
6,080
31,597
12,093
2,067
21,566
95,602
12,163
13,920

175

302,415
21,395
46,849
27,233
8,569
44,922
87,637
21,258
22,277

620,226
12,742
29,344
11,990
2,976
193,564
267,944
86,694
126,593

15,183
2,315
662
3,338
107
4,151
26,672
10,961
22,277
2,181
2,060

19,326
2,238
992
4,721
166
5,855
34,765
13,404
28,285
2,659
2,556

60,793
6,243
2,455
8,958
334
13,839
98,234
47,919
80,200
6,666
5,896

37,638
816

40,527
642

154,277
143

BANKS, 1973
A 87




289,046

121,496 231,364
31,388
35,849
-2 ,2 9 7 -16,082
3,731
578

JUNE 1974 □ MEMBER

Other U.S. Govt securities (agencies and corporations) i ........
Obligations of States and political subdivisions 1.....................

539
12,070
66,260
46,380
271

96,886
107,832
17,845
22,315
9,696 -10,138
2,813
5,956

A 88

INCOME, EXPENSES, AND DIVIDENDS OF LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT

MEMBER

(Income etc., in thousands, and asset and liability items in millions, of dollars)
Federal Reserve District

Operating income—Total.........................................
Loans:
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
corporations).............................................
Obligations of States and political subdivisions
All other securities.............................................
Trust department income.....................................
Service charges on deposit accounts...................
Other charges, fees, etc.........................................
Other operating income:
On trading account (net)..................................
O ther..................................................................
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 repurchase agreement.......................
Other borrowed money...................................
Capital notes and debentures.........................
Occupancy expense of 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 .............................................................

New
York

662,830 7,779,583

423,785 5,526,387
34,193
24,025

149,151
268,329

Rich­
mond

Atlanta

Chicago

978,772 1,664,532 1,110,936 1,175,715 3,567,373
728,060 1,067,846

792,199

111,762

38,283

24,774
28,249

96,335

46,966

818,081 2,478,146
64,432
48,699

228,773

159,003

Minne­
apolis

St.
Louis
642,393

422,608

373,776

258,538

47,052
31,496

13,923

Kansas
City

San
Francisco

Dallas

621,540 1,046,565

428,972

5,835,293

707,303 4,103,861

36,722

86,965

265,781

32,508

41,469

267,566
108,438
292,618
24,119
130,955
174,484
184,230
57,155
226,086

50,962
5,499
31,861

2,200

71,020
345,185
39,782
386,305
86,547
140,674

3,829
57,325
7,429
47,546
17,978
15,903

22,720
154,416
14,891
76,397
23,441
38,849

16,559
86,717
2,914
38,016
29,369
25,399

9,216
73,328
10,663
36,089
29,083
36,725

33,875
217,592
20,259
151,165
36,515
77,488

12,213
41,103
3,557
19,309
12,441
21,445

6,421
17,432
692
19,019
3,461
18,621

1,948
41,565
2,175
30,842
7,762
19,994

7,581
36,260

145,609
620,594

5,245
42,434

21,274
36,601

6,431
28,083

12,125
37,264

16,118
148,439

12,624
18,545

13,023
10,411

8,786
10,266

13,517
21,969

916,150 1,009,442 3,049,012

561,810

309,485

525,466

886,767 5,096,803

195,632
35,410

191,124
37,215

99,870
17,352

45,420
8,717

93,257
15,090

118,105 1,006,717
178,704
21,557

349,955

355,936 1,401,049

187,162

110,480

188,144

338,826 2,377,177

76,257
14,214
4,560
6,394
5,904
5,238
32,301

87,904
7,172
4,667
15,928
17,771
17,662
77,871

214,198
27,281
2,721
6,357
24,574
32,283
100,865

519,938
43,663
36,607
213,188
104,891
144,940
470,978

64,291

96,074
23,835
72,239
-411
-6 5

159,798

738,490

24,029
40,262
-3 1 9

37,158
122,640
-1 ,4 4 3

219,078
519,412
-9 9 4
-6 5 6

12,420
34,044

554,948 6,423,922

115,274 1,095,384
251,166
22,515

829,729 1,369,335
234,150
150,433
39,190
35,047

181,872 2,552,170

304,778

614,001

440,233
90,059

101,160 1,006,067
161,680
7,861
2,934
46,977
293,054
25,898
120,602
15,736
245,494
22,782
651,328
58,916

130,228
27,254
14,593
33,956
20,197
24,342
88,901

176,502
33,797
4,155
48,355
36,422
38,107
144,656

99,596
8,106
6,680
39,466
25,030
18,641
137,634

145,122
39,598
6,393
34,261
31,119
34,792
133,882

594,447
27,554
11,831
103,746
64,436
67,536
248,121

114,896
7,306
2,678
21,190
19,130
18,793
73,433

107,882 1,355,661

149,043

295,197

194,786

166,273

518,361

51,937
142,849
-3 ,7 7 4
-1 ,1 5 7

39,848
126,425
2,543
719

135,564
382,797
-6 ,6 3 2
705

80,583

55,066
240,131
9,639
2,829

118,354

252,599

137,918

129,687

376,870

63,795

39,943

71,763

121,197

517,762

368,956
870

66,644

142,679

53,895
608

60,483
118

188,993
194

33,790

17,546

45,362

39,292

231,461

399,478

30,403

55,066

51,937

39,848

135,564

15,750

24,029

-1,518

-15,506

40

4,862

-4 ,9 5 7

-347

-6 ,5 3 9

-1 ,0 5 8

-3 8 6

-11,134

-55,265

-5 ,1 5 3

-10,179

-9 ,5 4 8

-50,393

-3 ,0 5 7

-3 ,0 1 3

24,948

328,707

- 6 ,2 1 0
24,233

54.775

36,801

29,953

78,632

11,635

399,478
956,183
-14,034
1,875

Net income.......................

68,998

944,024

Cash dividends declared:
On common stock___
On preferred stock.. . .

30,427

37,600




Cleve­
land

5,695
88,166
3,929
39,609
8,502
29,441

37,600
70,282
-1 ,2 8 4

Memoranda items:
Income taxes applicable to 1973 operating in­
come ...............................................................
Tax effect of:
Net securities gains or losses ( —), etc.............
Transfers—Capital accounts to IRS loan loss
reserve 2......................................................
Total provision for income taxes, 1973 ................
Federal................................................................
State and local...................................................

Phila­
delphia

30,403
118,640
-5 3

20

233

15,442
9,506

175,042
153,665

23,905
328

15,750
64,833
-3 7 0
-6 4 8

54.775

33,458
3,343

26,727
3,226

62,450
16,182

10,799
836

20,630

12,619
8,011

10

1

23,835

37,158

219,078

-4 7 6

-4 ,6 0 7

-1 ,4 8 7

-3 ,0 6 5

-4 ,8 8 7

-71,801

20,294

18,134
2,160

27.664

27.664

145,790

93,354
52,436

BANKS, 1973 □ JUNE 1974

Boston

M emoranda items (cont.):
Occupancy expense o f bank premises, gross. . . .
R ental income from bank prem ises..................
N et securities gains or losses ( —) before income

Reserves for losses on lo an s:3
Balance a t beginning o f ye a r ...............................

A dditions due to mergers and absorptions..

Balance a t end o f y e a r ..........................................
Net loan losses ( —) o r recoveries 4 .....................
Reserves on securities:

Net income transferred to undivided profits----C om m on stock sold (n e t)........................................
Preferred stock, capital notes, and debentures

O ther increases...........................................................

U.S. Treasury securities1 .........................................
O ther U.S. G ovt, securities (agencies and
co rp o ratio n s)1....................................................
Obligations of States and political subdivisions1
T otal assets5. ................. ...........................................
T otal capital accounts plus total reserves...........
Equity capital plus total reserves...........................

8 7 ,6 3 3

"54,468

82,7 8 8

145,599

-4 ,3 4 3

-1 3 ,5 4 7

-2 2 ,5 3 4

-1 4 9 ,0 4 4

- 7 ,5 8 0

1,913

5,206

-2 ,3 0 8

1,002

140,088

45,042
50,224

40,819
362,030
302,808
549

7,304
37,280
29,227

9 ,2 4 9

1 ,1 1 9

94,6 1 5

1 ,4 6 7 ,1 3 7

-4 2 ,9 0 5

-2 6 1 ,9 8 9

100

25

147 ,8 6 2

49,620
40,674
2,339
2 3 9 ,8 8 3

425
5,926
39,365
20,747
1,672
163,385

140,0 2 7

6 3 4 ,1 5 7

27
9,856
42,435
32,390
1,553

736,978

9,694
45,679
296,867
194,723
1,029
8 9 3,466

-4 7 ,9 7 2

-1 3 ,0 9 3

2 4 ,0 0 0

2 ,8 9 7

7 ,243

9 ,1 3 9

13,220

117

55

864

904

30

6,942
3,550
I , j 4o

110

864

295
112
58
1,003

-3 1 ,4 2 5

-1 4 ,8 2 1

244

1,056

15,0 6 6

441

3 2 ,0 9 0

28,3 8 9

110,778

3 08,746

63,795
3,021

39,943
2,500

71,763
3

121,197
4,724

517,762
3,000

3,000
5,000
7,096
125,405
189,187

1,000
7
1,169
830
33,790

10,000

17,546

5,203
8
500
180
45,362

30,514
5,372
3,099
2,955
39,302

27,000
2,400
1,030
184,087
231,462

9,054
20,323

58,014
112,363

4,350
7,163

2,453
354

3,364
542

12,206
5,575

80,236
114,835

9,552
796

9,692
868

32,354
2,873

5,766
575

3,242
280

5,463
555

9,468
729

51,854
5,082

390
3,452
189
3,510
24,793
10,645
19,185
2,276
2,218

275
2,029
44
2,640
15,979
6,175
13,041
1,281
1,181

135
1,605
165
2,688
15,991
5,708
12,310
1,301
1,189

529
4,874
316
7,190
50,814
21,932
39,170
3,929
3,698

197
957
55
1,739
9,873
3,114
7,328
774
724

99
389
10
876
5,483
1,714
3,821
437
368

36
957
41
1,704
9,202
3,063
7,185
726
656

94
2,140
63
2,973
16,379
5,337
12,156
1,182
1,118

1,914
7,225
278
11,986
83,196
40,332
67,284
5,588
4,957

27,199
16

25,064
15

23,859
20

50,182
24

12,407
15

5,399
8

11,243
18

13,312
17

124,901
19

2 4 ,0 0 0

2 ,2 4 3

7 ,4 8 7

8 ,9 8 7

1 1 2 ,1 2 4

1 64,807

2 4 ,5 1 9

50

31 ,1 0 7

571,2 1 5

9 2 ,8 6 2

1 29,4 1 4

944,024
98,794

118,354
53,000

252,599
4,635

137,918
3,770

129,687
3,630

376,870
7,000

7,000

3,256
30,427

90,585
579
239,026
369,826

64,216
66,644

21,555
3,203
1,109
142,679

23,000
6,329
1,672
11,822
54,503

20,500
17,328
1,167
29,790
60,601

11,126
5,594

61,327
370,640

6,728
76,336

7,224
3,784

10,663
16,039

5,078
400

67,620
4,496

8,737
534

14,320
1,666

217
824
45
1,506
8,742
2,537
6,428
748
697

1,081
7,807
608
25,814
117,076
36,600
88,331
9,992
9,147

61
1,344
120
2,082
13,653
5,058
10,201
1,161
950

12,421
4

104,734
16

17,623
6

5,000

127,224

-3 4 ,4 9 3

-2 1 ,9 2 3

100

68,998
1,000

-1 ,2 2 4

-1 2 9

103,3 0 6

A 89




5,638
24,091
19,185
500

12,124

BANKS, 1973

F o r num bered notes see p. A-91.

72,7 4 4

685
10,615
5,028

-1 3

JUNE 1974 □ MEMBER

Assets, deposits, and capital accounts:
Loans gross (includes Federal funds sold and re-

4 8 ,1 9 6

297
3,463
25,297
16,556
113

-2 9 ,4 9 0

Premium received on new capital stock so ld . . . .

Transfers to loan and securities reserves (net o f

7 5 ,2 4 5

13,350
175,698
61,322
7,096

-2 ,8 0 2

A dditions due to mergers and absorptions..

Balance a t en d o f y e a r ..........................................

513,5 2 7

250
10,045
53,281
44.538
164

121,838
18,092

2 2 4 ,0 2 7

-1 ,9 1 3

121,153

51,245
16,984

1 3 2,505

- 6 ,0 5 0

-7 0 5

- 1 ,2 9 2

50,097
10,631

1 ,3 6 7 ,6 4 5

-8 2 3

-7 8 4

1,012

65,001
16,646

92 ,478

252,747
39,559

-1 3 ,4 7 8

39,645
5,689

1,825

33,635
27,278

13,054
6,660

343,111
50,057

Extraordinary charges ( —) or credits before in-

30,294
14,366

25,986
4,796

31,878
5,980

A 90
MEMBER

INCOME, EXPENSES, AND DIVIDENDS OF OTHER-THAN-LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT

Item

L o a n s:
Federal funds sold and securities purchased with resale
Securities— Interest and dividends: 1
O ther U.S. G ovt, securities (agencies and corporations)----O bligations o f States and political su b d iv isio n s................
Trust departm ent incom e..................................................................
Service charges on deposit accounts..............................................
O th er charges, fees, etc.......................................................................
O ther operating income:
O n trading account (net)
• ........................
O th er...................................................................................................

Boston

New
Y ork

Phila­
delphia

Cleve­
land

R ich­
m ond

A tlanta

Chicago

St.
Louis

M inne­
apolis

Kansas
City

Dallas

San
Francisco

995,395 2,361,839

941,636 1,252,289 1,209,716 1,883,105 2,805,054

666,002

735,404 1,163,777 1,200,242 1,034,138

706,526 1,531,275

614,336

798,169

827,456 1,180,818 1,773,124

395,851

481,164

725,525

750,949

26,653

86,387

35,271

55,967

53,611

100,868

135,889

38,615

30,650

74,764

81,172

26,671

45,513
16,684
74,185
6,363
46,595
31,323
19,748

162,889
94,218
238,793
26,799
64,321
71,190
36,061

84,364
39,070
96,706
17,797
16,315
18,144
10,656

140,240
40,026
118,636
8,637
22,955
32,254
24,506

81,350
44,417
99,259
4,084
17,673
33,398
32,644

140,044
75,582
189,107
10,030
35,257
69,484
56,709

259,665
133,760
249,545
41,366
51,574
69,596
57,680

78,458
40,501
61,653
3,938
9,758
17,043
13,115

72,742
31,079
64,295
2,067
6,015
23,408
18,349

107,209
39,498
103,657
4,704
15,330
44,907
33,181

94,259
55,168
109,630
7,221
13,995
47,547
22,788

66,870
29,063
72,073
2,761
18,343
46,185
32,137

3,260
18,545

8,545
41,361

8,977

303
10,596

1,713
14,111

1,353
23,853

426
32,429

342
6,728

82
5,553

1,259
13,743

387
17,126

1,339
19,172

996,297 1,543,750 2,340,950
319,704 444,183
215,733
53,744
77,356
36,851

529,548
107,613
17,360

605,143
108,290
19,517

923,046
197,667
30,782

968,302
197,232
29,496

905,461
216,193
33,572

719,524

Operating expenses—T o tal....................................................................
Salaries and wages o f officers and em ployees..............................
Officer and employee benefits...........................................................
Interest paid on:
Tim e and savings d ep o sits............................................................
Federal funds purchased and securities sold with repur­
chase agreem ent......................................................................
O ther borrow ed m oney..................................................................
C apital notes and debentures.......................................................
Occupancy expense o f bank premises, n e t....................................
Furniture, equipm ent, etc..................................................................

851,448 2,018,945
200,308 432,609
39,522
83,769

784,649 1,026,821
198,935
147,201
33,206
27,222

320,915

907,988

428,541

516,394

438,412

685,099 1,242,641

270,520

341,571

425,257

451,334

386,706

50,425
10,943
2,489
46,940
28,429
27,030
124,447

102,789
12,905
10,408
109,878
60,032
42,036
256,531

6,998
3,509
3,380
30,919
24,414
12,467
99,998

24,588
3,182
3,436
37,162
36,219
23,600
150,099

42,568
6,615
4,061
39,575
34,341
24,152
153,989

77,529
6,362
4,592
55,847
53,244
43,459
244,170

69,614
10,075
10,318
91,769
71,269
45,264
278,461

8,630
975
1,196
20,867
17,490
10,833
74,064

8,836
1,256
3,624
19,057
18,738
10,767
73,487

36,295
6,625
3,634
32,041
30,384
26,309
134,052

37,878
2,854
2,813
37,752
30,450
30,774
147,719

32,141
2,756
9,244
43,951
32,854
26,295
121,749

Income before income taxes and securities gams or losses..............
A pplicable income tax es....................................................................

143,947
36,247
107,700
-1 ,5 4 8
653

342,894
48,425
294,469
-4 ,8 1 2
4,085
7

156,987
22,170
134,817
777
-4 4 3

225,468
45,679
179,789
- 1 ,1 6 0
451
Q
7

213,419
53,079
160,340
- 1 ,2 4 0
2,727

339,355
69,795
269,560
- 2 ,2 0 4
2,129
-1

464,104
100,177
363,927
-1 ,2 8 7
- 1 ,1 1 0
31

136,454
32,908
103,546
681
-9 0

130,261
33,673
96,588
-1 ,9 6 7
-5 4

240,731
62,854
177,877
205
876
3

231,940
51,751
180,189
-6 0 1
1,630

128,677
27,406
101,271
522
671

106,805

293,735

135,151

179,071

161,827

269,486

361,499

104,137

94,567

178,955

181,218

102,464

50,166
33

134,324
8

50,104

61,827
218

58,624

81,455

108,752
145

26,473
14

29,917
25

49,953
287

48,328
7

36,460
22

36,247

48,425

22,170

45,679

53,079

69,795

100,177

32,908

33,673

62,854

51,751

27,406

-5 8 0
-6 ,5 8 1

-2 ,3 6 1
- 8 ,0 3 0

-1 1 9
-6 ,8 5 5

-9 6 9
-8 .3 0 9

1,076
-9 ,0 7 1

- 1 ,4 0 6
-9 ,5 9 3

-6 4 1
- 15,678

253
-3 ,4 7 4

-1 ,2 7 7
-4 ,9 0 8

-1 4 3
-5 ,9 3 3

-5 8 4
-3 ,3 8 9

450
-3 ,9 9 2

29,0 8 6

3 8 ,0 3 4

1 5 ,1 9 6

36,401

4 5 ,0 8 4

5 8 ,7 9 6

8 3 ,8 5 8

2 7 ,4 8 8

5 6 ,7 7 8

24,012
14,022

15,074
122

36,314
87

42,199
2,885

52,318
6,478

70,895
12,963

2 9 ,6 8 7

17,976
11,110

19,122
8,366

49,550
7,228

N et securities gains o r losses ( —) after taxes...............................
Extraordinary charges ( —) o r credits after taxes........................
L ess m inority interest in consolidated subsidiaries......................

Cash dividends declared:
On com m on sto c k .........................................................................
Q jj preferred stock
................................ .............................
Memoranda items:
Income taxes applicable to 1973 operating incom e...................
Tax effect of:
N et securities gains or losses ( —), etc................ .......................
Transfers—Capital accounts to IR S loan loss reserves2 . . . .
Total provision f o r incom e taxes 1973 ... ............................. ..




28,367
1,320

4 7 ,7 7 8

47,378
400

2 3 ,8 6 4

19,372
4,492

BANKS, 1973 □ JUNE 1974

(Income, etc. in thousands, and asset and liability items in millions, o f dollars)

M e m o r a n d a ite m s ( c o n t.):

53,334
6,394
- 2 ,6 7 9
1,204

118,922
9,044
-1 0 ,2 4 3
7,155

32,969
2,050
1,167
-9 5 2

42,831
5,669
- 2 ,4 2 8
750

46,789
7,214
- 2 ,5 5 8
5,121

70,251
14,404
- 4 ,2 1 0
2,729

109,526
17,757
-2 ,6 0 4
-4 3 4

23,204
2,337
991
-1 4 7

22,966
3,909
- 3 ,2 6 4
-3 4

39,836
7,795
52
886

52,186
14,434
- 1 ,1 9 7
1,642

52,371
8,420
604
1,039

Balance at beginning o f year ....................................

12 5,740

3 1 6 ,5 8 2

124,323

144,782

138,868

189,826

3 5 2,394

7 4,4 5 0

8 9 ,5 5 7

120,471

138,123

1 0 6 ,953

2,929
18,993
60,269
59,539
832

539
4,766
28,980
17,153
271

318
9,761
43,774
27,548
1,031

626
19,804
65,986
57,157
1,990

449
22,642
78,598
64,652
1,856

4
5,983
19,893
14,842
1,336

89
5,307
20,548
14,561
952

79
12,122
40,267
34,523
1,364

Balance at end o f year ...........................................

26
8,460
40,697
32,201
786
1 41,936
- 2 3 ,7 7 7

3 3 8 ,4 0 2

141,184

1 6 4 ,734

1 6 4,142

217 ,0 9 5

148,216

121,400

-4 0 ,5 7 0

-1 2 ,3 8 7

- 2 0 ,5 2 4

-1 7 ,9 0 9

-3 7 ,3 5 3

-4 2 ,0 4 7

-8 ,8 3 3

- 9 ,3 7 2

-2 2 ,9 9 1

-2 7 ,1 2 6

-1 9 ,3 7 0

Balance at beginning o f year ....................................

1 ,3 5 0

3 ,6 3 5

881

5 ,1 9 5

958

3 ,0 9 2

12,580

4 ,4 0 0

25

1
1,019

i;4 7 6

730

175
5,7 0 1

Occupancy expense of 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

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:
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 yea r ...........................................

403
10,088
41,280
30,379
1,440

387 ,5 7 5

8 4 ,1 5 2

9 9 ,9 8 8

1 37,052

82
19,132
41,253
45,635
4,739

4 ,8 1 8

7,9 0 0

11 ,4 2 7

4 ,7 6 6

14
358
27
337

32\

\9

268
1
251

11
937
19
347

1,191
200
1,107

210
114
1,252

i92

34
139
137
202

1 ,1 3 4

5 ,2 0 3

4 ,8 3 5

8 ,4 8 2

11 ,6 3 2

3 ,6 2 9

791

2 ,9 2 6

12 ,870

3 2 6 ,155

96 ,4 8 0

4
42
77
254

24
11
549
70
310

3
298
19
20
47

1 ,0 6 5

3 ,8 3 9

1

371
12,411
35,215
31,779
1,771

8 0 ,8 6 5

236,271

1 2 4,917

153,880

1 8 4,516

3 0 9,834

174,047

209,433

293,735
14,245
17,297
18,506
1,142
45,921
134,332
10,379
9,864

135,151
5,259
24,147
16,456
318
11,284
50,104
9,670
7,924

179,071
6,084
16,211
9,945
1,778
27,170
62,045
10,007
. 14,327

161,827
23,296
12,327
40,278
1,282
24,403
58,624
11,124
9,149

269,486
34,791
21,451
51,245
2,337
42,248
81,455
13,841
16,428

361,499
13,021
26,485
29,268
2,963
37,845
108,897
18,875
17,154

104,137
3,119
3,857
7,551
2,589
13,094
26,487
5,768
6,101

94,567
13,569
14,766
4,578
1,144
10,684
29,942
5,411
7,475

178,955
6,077
26,394
12,085
1,567
21,386
50,240
8,799
13,378

181,218
16,671
16.335
21,861
5,470
41,967
48.335
9,052
16,702

102,464
9,742
2,344
9,590
1,946
9,477
36,482
6,458
11,758

Assets, deposits, and capital accounts:
L oans gross (including Federal funds sold and resale p u r­
chases) .........................................................................................
U.S. T reasury securities 1...............................................................
O ther U.S. G ovt securities (agencies and corporations) l . . . .
O bligations o f States and political subdivisions 1.....................
All o th er securities 1........................................................................
C ash a sse ts.........................................................................................
T o tal assets 5 .................. ...................................................................
T im e an d savings d eposits.................................. ...........................
T o tal d ep o sits.....................................................................................
T o tal capital accounts plus total reserves...................................
Equity capital plus total reserves..................................................

8,934
806
257
1,751
95
1,986
14,377
5,940
12,301
1,161
1,123

20,330
2,814
1,422
5,618
367
4,250
36,025
17,370
30,890
2,978
2,808

8,538
1,410
613
2,301
260
1,446
14,950
8,618
13,268
1,241
1,196

10,728
2,377
630
2,778
130
2,062
19,206
10,365
16,783
1,647
1,601

10,277
1,318
709
2,237
64
2,068
17,235
8,194
14,716
1,378
1,327

14,788
2,315
1,198
4,198
149
4,096
27,623
12,549
23,902
2,173
2,108

23,754
4,365
2,115
5,785
584
4,704
42,452
23,805
37,347
3,321
3,179

5,527
1,295
676
1,451
54
1,316
10,586
5,223
9,394
881
862

6,326
1,240
498
1,482
33
1,146
10,986
6,338
9,767
840
785

9,720
1,760
626
2,381
66
2,447
17,470
7,898
15,092
1,455
1,404

9,858
1,509
899
2,581
103
2,882
18,386
8,067
16,129
1,477
1,437

8,939
1,161
541
1,733
56
1,853
15,039
7,587
12,916
1,078
939

N u m b er o f officers and employees
N um ber o f ban k s..............................

27,985
208

55,869
315

22,394
275

29,434
440

32,401
364

45,823
587

60,425
912

15,426
416

15,334
493

26,395
798

27,215
625

29,376
124

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 security reserves (net of tax effect)---Other decreases.............................................................................

cluded in the time deposit figures used in this table. The
num ber of officers and employees is as o f the end o f year.
Cash assets comprise cash, balances with other banks (in­
cluding reserve balances), and cash items in process o f col­
lection. Equity capital and reserves include common and
preferred stock, surplus,- undivided profits plus reserves
for contingencies, other capital reserves, and reserves on
loans and securities. Total capital accounts include equity
capital and capital notes and debentures. Details may not
add to totals because o f rounding.

A 91




banks not on a reserve accounting method and the excess o f
losses charged against reserve for losses on loans over re­
coveries credited to these reserves for banks on a reserve
accounting method.
5 Including trading account securities.
N ote.—Figures' exclude two member banks located outside
the continental United States. Balance sheet figures shown
were obtained by averaging the amounts shown in each bank’s
official condition reports submitted for December 31, 1972,
June 30 and December 31, 1973. Savings deposits are in­

BANKS, 1973

1 Excluding trading account securities.
2 Prior to 1969 transfers to IRS reserve for bad debt losses
on loans were deducted from operating income; beginning
in 1969, w ithin prescribed limits, banks may deduct all or
p art o f the transfers to this reserve from income and treat
the balance, if any, as a transfer from capital accounts. (These
transfers are exempt from Federal income taxes.)
3 Includes reserve for bad debt losses and other reserves on
loans.
4 Sum o f the expense item “ provision for loan losses” for

95,991

JUNE 1974 o MEMBER

8 5 ,6 7 8

106,805
3,905
3,559
3,900
1,040
30,762
50,199
7,524
6,570

Total net changes in capital accounts .................................

A 92
MEMBER

INCOME, EXPENSES, AND DIVIDENDS, BY SIZE OF BANK
(Amounts in thousands of dollars)

Total i

Less than
2,000

2 ,0 0 0 5,000

5,00010,000

10,00025,000

25,00050,000

50,000100,000

100,000500,000

500,000-

or more

41,678,613

4,927

114,230

518,415

2,251,526

2,546,940

2,717,852

7,108,752

26,415,971

28,245,837

2,435

61,458

296,571

1,354,270

1,613,619

1,743,938

4,647,345

18,526,201

1,839,874

840

13,156

47,629

159,685

124,708

123,020

321,948

1,048,888

2,389,208
942,336
2,925,556
268,153
1,344,153
938,797
997,453

915
301
71
88
135
71

19,440
7,242
4,959
720
47
3,544
2,375

71,948
30,608
35,285
3,423
484
18,585
8,910

257,344
114,377
199,075
16,504
5,853
80,982
40,212

237,619
119,022
242,758
19,799
23,775
89,361
48,674

224,600
116,320
264,110
24,935
48,977
88,246
51,430

472,205
233,728
614.681
59,800
241,135
189,279
202,484

1,105,137
320,738
1,564,617
142,884
1,023,882
468,665
643,297

338,497
1,448,749

71

1,289

12
4,960

61
23,163

98
27,507

88
32,188

20,103
106,044

318,135
1,253,527

Operating expenses—T otal...............................................................
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 repurchase
agreement...............................................................................
Other borrowed money.............................................................
Capital notes and debentures...................................................
Occupancy expense of bank premises, n et...................................
Furniture, equipment, etc...............................................................
Provision for loan losses...............................................................
Other operating expenses..............................................................

34,997,171
6,564,326
1,233,521

3,894
1,328
149

90,539
24,746
2,961

409,625
98,249
13,375

1,795,422
379,567
58,980

2.075.730
421,558
70,465

2,263,394
460,629
78,669

6,027,510
1,212,317
218.682

22,331,057
3,965,932
790,240

15,367,629

1,009

38,356

192,057

908,358

1.044.731

1,119,034

2,666,916

9,397,168

139
155
374
738

150
89
49
3,311
2,998
3,192
14,687

1,315
563
368
14,696
12,864
12,363
63,775

8,661
3,671
2,944
67,069
55,312
47,264
263,596

23,095
6,329
6,610
81,352
66,796
52,027
302,767

52,118
9,095
9,208
94,463
73,129
50,995
316,054

440.085
39,928
32,381
258,331
207,864
145,069
805,937

3,238,162
413,607
152,291
886,191
503,480
681,399
2,302,587

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 subsidiaries....................

6,681,442
1,654,237
5,027,205
-2 9 ,7 7 3
15,253
302

1,033
345
688
_2
-1

23,691
6,296
17,395
-1 9
-2 0

108,790
27,836
80,954
-4 5
152
1

456,104
111,258
344,846
680
1,041
10

471,210
106,231
364,979
-1 7
694
2

454,458
93,179
361,279
-2 ,1 8 1
2,080
11

1,081,242
222.086
859,156
-7 ,6 3 2
4,122
50

4,084.914
1,087,006
2,997,908
-2 0 ,5 5 7
7,185
228

Net income..........................................................................................

5,012,383

685

17,356

81,060

346,557

365,654

361,167

855,596

2,984,308

Cash dividends declared:
On common stock..........................................................................
On preferred stock.........................................................................

2,015,541
2,560

316

4,071

18,153
2

82,033
48

104,623
87

120,701
209

356,839
541

1,328,805
1,673

1,654,237

345

6,296

27,836

111,258

106,231

93,179

222,086

1,087,006

-2 0
-2 9 6

283
-1 ,8 0 1

78
-1 0 ,8 1 5

-3 5 4
-1 3 ,3 8 9

-7 4 9
-15,100

-6 ,7 1 1
-3 7 ,0 4 3

-3 0 ,7 9 2
-2 4 0 ,9 4 7

5 ,9 8 0

2 6 ,3 1 8

100,521

9 2 ,4 8 8

7 7 ,3 3 0

Operating income—Total....................................................................
Loans:
Interest and fees..........................................................................
Federal funds sold and securities purchased with resale
agreement.............................................................................
Securities—Interest and dividends:2
U.S. Treasury securities............................................................ .
Other U.S. Govt, securities (agencies and corporations).---Obligations of States and political subdivisions................... .
All other securities....................................................................
Trust department income..............................................................
Service charges on deposit accounts............................................
Other charges, fees, etc..................................................................
Other operating income:
On trading account (net)..........................................................
O ther...........................................................................................

Memoranda items:
Income taxes applicable to 1973 operating income...................
Tax effect o f:
Net securities gains or losses ( —), etc......................................
Transfers—Capital accounts to IRS loan loss reserves 3. . . .
Total provision fo r income taxes , 1 9 7 3 ............................

Federal........................................................................................
State and local............................................................................




3,763,586
473,284
203,851
1,405,552
922,598
992,683
4,070,141

-3 8 ,2 6 3
-3 1 9 ,3 9 4

2
-3

1 ,2 9 6 ,5 8 0

344

977,430
319,150

316
28

5,529
451

24,053
2,265

90,604
9,917

81,947
10,541

66,521
10,809

17 8 ,3 3 2

146,944
31,388

8 1 5 ,2 6 7

561,516
253,751

BANKS, 1973 □ JUNE 1974

Size group—Total deposits (in thousands of dollars)
Item

M em oranda items (cont.):

Reserves for losses on lo an s:4

1,721,657
316,105

148
9

3,534
223

15,808
1,112

71,988
4,919

91,266
9,914

111,500
17,037

325,450
67,119

1,101,963
215,772

- 7 5 ,9 7 6
23,193

-1

-5 4
-5

70
320

626
1,173

-7 9 8
1,121

-3 ,9 9 7
3,147

—15,833
5,612

-5 5 ,9 8 9
11,825

5 ,5 7 2 ,7 8 4

178

7 ,0 5 4

4 3 ,7 9 8

2 2 1 ,3 6 8

2 8 9 ,0 7 9

3 2 8 ,4 8 5

8 8 8 ,1 8 7

3 ,7 9 4 ,6 3 5

16,605
308,707
1,677,194
1,246,943
33,383

53
253
275
5

261
25,238
76,198
65,950
2,297

289
26,982
84,232
70,552
3,861

-9 4 0 ,0 0 0

-3 4 6

-2 ,8 4 5

—9,796

-4 1 ,1 5 5

—43,788

—4An/ ,7QlIJc

_132 419

1111 ,/Z3
701
168,154
11 ,lo
1QQ
017
o ,23/
829 890
11*81 A
A , j2i70
HAS
7 , yJH
J
—UU1
661 )716
/JU

1 1 7 ,7 4 3

3

240

2 ,6 3 4

8 ,5 2 4

1 6 ,2 3 5

7 ,1 6 8

3 0 ,4 4 1

5 2 ,4 9 8

27

18
29
9
167

61
898
109
783

1,802
34
2,060

740
463
233

6 ,2 9 4 ,9 6 4

Reserves on securities:

Balance a t beginning o f ye a r. -------------- •......................................

A dditions due to mergers and absorptions.............................

204

28
1,222
15,464
4,273
9,703

13
1,346
3,676
3,718
93
8 ,2 7 8

16

106
6,858
17,*974
16,148
1,126
5 1 ,4 6 2

2 5 4 ,8 1 8

3 2 6 ,1 6 9

2 ,5 0 5

8,5 9 1

1 5 ,9 7 7

7 ,8 1 2

3 1 ,4 2 2

5 3 ,9 2 0

3 ,6 3 2 ,2 2 3

16,181

74,7 8 9

3 4 8 ,6 7 9

3 4 8 ,0 1 4

3 2 9 ,8 4 2

7 22,508

JO l, lo /
16,129
A
411 , 111
J jJ
21,729
4,065
45,798
ion
am
1ZU,7lU
on
n ji
ZU, iLU
19,366

1 ,7 9 1 ,1 4 7
7Z, oad.
ms
yo^r , jUO
11A
/4, 071
Z /3

Assets, deposits, and capital accounts:
Loans gross (includes Federal funds sold and resale purchases).. 390,845,798
U.S. Treasury securities2 .............................................. ,..................... 38,306,375
O ther U.S. G ovt, securities (agencies and corporations)2........... 17,696,070
rtKiioafinnc
CtatN anH nnlitical subdivisions 2 ........................ 68,398,943
3,965,666
99,976,405
655,395,536
281,233,936
526,532,851
capital accounts plus total reserves........................................ 51,001,625
47,670,209

42,218
15,785
5,430
2,337
747
12,408
80,722
23,100
69,052
10,417
10,417

981,144
309,150
145,024
126,520
14,007
239,517
1,847,057
855,121
1,633,987
180,777
179,785

4,528,077
1,137,279
596,234
892,048
54,989
996,773
8,361,512
4,159,261
7,460,943
737,097
730,662

19,842,655
4,046,187
2,094,069
4,904,519
254,490
4,193,191
36,144,219
19,062,495
32,244,343
2,963,547
2,912,773

22,781,451
3,622,883
1,979,887
5,763,444
288,978
4,766,685
40,366,652
21.227.164
35.547.165
3,280,992
3,177,301

814,662
5,618

220
45

3,815
437

13,518
992

54,191
1,990

60,420
1,015

5,012,383
269,059
308,390
311,120
43,091
958,991
2,018,101
383,494
869,216

685
355

65,384
550

163,135

A'XA

253,507,909
18,253,500
7,122,513
36,253,885
7L , 14.Q
1•Vy , 7rt4
iW
AQ
SOS 161
U
O, JvO,
JUJ
414
•r
i *T, 546 102
161
I v l , 917
7 J179
/7
Q lT*tj
441 , 71
31110,
/ 3Q
O
31,664,959
OQ,133,10/
1^1 1R7
Z7
453,979
153

5 Sum o f the expense item “ provision for loan losses” for banks not on a reserve accounting
m ethod and the excess o f losses charged against reserve for losses on loans over recoveries
credited to these reserves for banks on a reserve-accounting method.
6 Including trading-account securities.
N ote.__The figures for assets, deposits, capital accounts, num ber o f officers and employees,
and num ber o f banks are as o f the end o f the year.
Details may not add to totals because o f rounding.

A 93




24,637,844 64,524,500
7,491,701
3,429,890
3,855,082
1,897,831
14,303,104
6,153,086
840,453
362,798
< AQ1I , <11
1^ i/O/
f n ,7J
Q17/
jjl
1
1
fl
78rt
117
43,268,955 11U, / oVJ,11/
OO, 11Q
LL
3 1o , /*7110£ j i , o j j , i \jkj
93,258,898
37,874,725
8,721,276
31 AAO DoU
8,211,122
3,294,962

104 573
153’,681
18
1O, 11
jH
£88
7Q
Doo,17O
1,330 478
’ 2 7 5 ’ 358
726*962

BANKS, 1973

1 T o tal is for banks operating during the entire year, except that two banks located outside
the continental U nited States are excluded.
2 Excluding trading-account securities.
3 Prior to 1969 all transfers to IRS reserve for bad debt losses on loans were deducted Irom
incom e; beginning in 1969 within prescribed limits, banks may deduct all or part o f the trans­
fers to this reserve from income and treat the balance, if any, as a transfer from capital accounts.
(These transfers are exempt from Federal income taxes.)
4 Includes reserve for bad debt losses and other reserves on loans.

QCC
CQ£
O
JJ, J70
1C
QAA
j 3,704
110 160
59*081
10,302
IrtQ
OO
lUbf, 'T
loo
357 380
42 106
58,’897

JUNE 1974 □ MEMBER

12
5
427
316
-1
106

Transfers to loan and securities reserves (net o f tax effect).........

214
9,257
3,550
4,499

1 ,0 6 3

365,654
17,313
28,376
38,419
5,921
46,522
104,710
20,399
29,082

cnln . . . . . . . . . . .

28
295
2,711
108
1,945

251

346,557
20,562
20,548
30,809
3,080
55,929
82,081
20,231
26,494

o1 nAtAc on/4 n pKpfitll

y / Z , LZf

3

81,060
4,061
2,975
5,968
1,294
8,941
18,155
4,509
6,846

(*-, .. ..n J _

3 62,861

3,505
56,362
221,210
1Q
7ft l1
lo O
o ,/o
Q
1C/:
o , 330

120,481

17,356
402
425
1,421
110
2,790
4,071
789
1,463

t\

708
23,714
85,414
71
COO
/ l , ozy
3,831

A 94

INCOME RATIOS BY CLASS OF MEMBER BANK, AND FOR ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICT
(Computed from aggregate dollar am ounts; ratios expressed as percentages)

Large
Item
City of
Chi­
cago

All
member
banks

Bos­
ton

New
Y ork

Phila­
del­
phia

Cleve­
land

Rich­
mond

At­
lanta

Chi­
cago

St.
Louis

M in­
neap­
olis

K an­
sas
City

D al­
las

San
Fran­
cisco

Other

Summary ra tio s:
Percentage o f equity capital plus a ll reserves:

Incom e after taxes and before securities gains
(losses)1............................................................................
N et in co m e..........................................................................
Cash dividends p a id ..........................................................
P ercen tage o f net incom e:

C ash dividends p a id ..........................................................

10.53
10.39
3.99

10.50
10.34
4.46

10.68
10.69
5.23

11.56
11.55
3.92

11.00
10.97
4.41

9.77
9.66
4.43

10.46
10.35
4.21

11.80
11.81
5.44

10.99
11.30
5.36

12.08
11.95
4.51

12.01
12.10
4.30

10.85
10.73
4.33

10.61
10.58
3.79

11.86
11.66
4.11

12.14
12.17
4.64

11.84
11.83
3.42

10.52
10.51
4.54

38.38

43.18

48.96

33.98

40.27

45.86

40.73

46.05

47.42

37.74

35.58

40.37

35.89

35.30

38.13

28.97

43.20

5.45
1.14
2.15
.24
1.92
6.62

6.23
.96
2.92
.19
2.16
7.33

5.91
1.29
2.47
.22
1.93
6.91

5.52
1.33
2.62
.23
1.34
6.65

5.69
1.26
2.49
.22
1.72
6.77

6.08
1.63
2.17
.31
1.97
7.17

5.51
1.21
2.26
.26
1.78
6.62

5.64
1.25
2.56
.22
1.61
6.71

5.44
1.14
2.56
.19
1.55
6.62

5.75
1.45
2.37
.23
1.70
6.98

5.85
1.37
2.38
.20
1.90
7.01

5.77
1.12
2.83
.20
1.62
6.83

5.33
1.18
2.23
.20
1.72
6.39

5.55
1.10
2.74
.15
1.56
6.73

5.43
1.26
2.29
.17
1.71
6.69

5.33
1.05
2.27
.12
1.89
6.46

6.11
1.46
2.81
.26
1.58
6.99

.82
.81

.80
.79

.73
.73

.88
.88

.81
.81

.76
.76

.81
.80

.88
.88

.95
.98

.91
.90

.90
.91

.80
.79

.82
.82

.83
.81

.93
.94

.87
.86

.63
.63

72.80

76.27

74.35

69.24

72.18

71.83

71.91

73.02

69.72

73.75

70.75

72.43

69.10

70.55

70.91

72.38

74.47

3.33

3.69

4.61

8.20

5.73

4.19

4.25

5.86

8.11

5.52

6.17

6.56

8.40

7.81

7.82

6.04

4.86

.91
4.34
.52
1.05
5.08
11.97

.94
5.94
.53
.41
4.86
7.36

1.36
6.29
.51
2.19
3.41
7.28

3.93
9.09
.83
3.10
1.95
3.66

2.26
7.01
.64
2.25
3.22
6.71

1.75
6.52
.51
2.22
5.88
7.10

1.62
5.75
.65
1.55
4.44
9.83

2.23
8.02
1.31
1.88
3.32
4.36

2.15
9.36
.80
1.90
3.40
4.56

2.62
8.01
.30
2.70
2.39
4.71

2.77
8.57
.67
3.22
2.33
5.52

2.63
7.33
.96
1.66
3.18
5.25

4.02
7.85
.57
2.25
2.22
5.59

3.38
7.36
.24
2.42
2.25
5.99

2.32
8.13
.38
2.95
2.58
4.91

2.70
8.80
.49
2.49
2.38
4.72

2.00
5.30
.39
3.21
2.17
7.60

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

100.00

Sources and disposition of income:
Percen tage o f to ta l assets:

T o tal operating expenses.................................................
Salaries, wages, and fringe benefits..........................
Interest on tim e and savings deposits......................
O ccupancy expense o f bank premises, n e t.............
All o th er operating expenses.....................................
T o tal operating incom e....................................................
Incom e after taxes and before securities gains
(losses)1............................................................................
N et in c o m e ..........................................................................
P ercen tage o f to ta l operating incom e:

Interest, fees, and oth er loan incom e2 ........................
Securities—Interest and dividends:3
U.S. Treasury securities..............................................
O ther U.S. Govt, securities (agencies and cor­
porations) ...................................................................
O bligations o f States and political subdivisions. .
All other securities........................................................
Service charges on deposit acco u n ts............................
T rust departm ent incom e................................................
All other operating incom e.............................................
Total operating incom e.......................................

100.00 100.00 100.00 100.00 100.00 100.00

Salaries and wages.............................................................
Officer and employee benefits........................................
Interest o n :
Tim e and savings d ep o sits..........................................
B orrow ed m o n ey ...........................................................
C apital notes and debentures....................................
O ccupancy expense o f bank premises, n e t.................
Provision for loan losses.................................................
All o th e r operating expenses..........................................

14.05
3.23

10.72
2.38

15.81
2.89

17.14
2.96

15.75
2.95

19.03
3.74

15.06
3.30

15.49
3.24

14.84
2.48

17.72
3.11

16.70
2.97

13.87
2.62

15.85
2.65

13.85
2.54

16.29
2.56

14.03
2.27

17.80
3.09

32.52
15.11
.61
3.74
3.16
9.89

39.95
19.64
.18
2.59
2.05
7.53

35.82
13.38
.59
3.19
2.46
11.45

39.48
3.48
.36
3.48
1.98
14.17

36.86
10.16
.48
3.37
2.38
12.04

30.32
10.27
.32
4.39
3.00
13.75

34.11
12.65
.56
3.97
2.83
10.78

38.18
8.74
.93
3.37
1.91
12.21

38.75
8.16
.26
2.93
2.11
12.62

33.97
6.76
.46
3.40
1.84
15.15

34.03
8.78
.35
2.94
2.55
15.15

41.48
11.01
.34
3.06
1.77
10.44

34.98
10.07
.29
3.21
2.26
14.11

40.75
9.06
.73
2.29
1.44
11.80

34.35
7.72
.46
2.68
2.46
14.62

35.16
12.56
.24
1.96
2.80
13.55

40.23
8.71
.66
3.74
2.49
10.66

T o tal operating expenses....................................

82.31

85.04

85.59

83.05

83.99

84.82

83.26

84.07

82.15

82.41

83.47

84.59

83.42

82.46

81.14

82.57

87.38

Incom e before taxes and securities gains (losses)...
Incom e after taxes and before securities gains
(losses)..............................................................................
N et securities gains o r losses ( —) after taxes . .
.................
All other income (net).............

17.69

14.96

14.41

16.95

16.01

15.18

16.74

15.93

17.85

17.59

16.53

15.41

16.58

17.54

18.86

17.43

12.62

12.44
-.1 8
.02

11.03
-.2 0
.03

10.66
.01

13.35
- .0 8
.07

12.05
— .07
.03

10.73
- .1 6
.03

12.33
- .1 8
.05

13.19
.02
-.0 1

14.39
.29
.11

13.06
- .2 1
.06

12.94
.01
.09

11.71
-.1 3

12.86
.02
- .0 5

12.33
-.2 1

14.00

9.03
-.0 1

.04

13.47
- .0 9
.07

N et in co m e.........................................................................

12.28

10.86

10.67

13.34

12.01

10.60

12.20

13.20

14.79

12.91

13.04

11.58

12.83

12.12

14.04

13.45

9.02




BANKS, 1973 □ JUNE 1974

New
York
City

All
other

MEMBER

Federal Reserve district

Class o f bank

Rates of return (per cent):
On securities— Interest and dividends : 3

U.S. Treasury securities..........................................
Other U.S. Govt, securities (agencies and cor­
porations) .............................................................
Obligations of States and political subdivisions..
All other securities...................................................

On loans:2

Interest, fees, and other loan income....................
Net loan losses ( —) or recoveries4........................

5.93

5.57

5.51

5.96

5.80

5.76

5.89

5.79

5.85

6.07

5.92

5.78

5.87

5.70

6.03

6.06

5.35

6.54
4.44
6.56

6.48
4.64
6.24

5.87
4.23
7.10

6.27
4.30
6.92

6.20
4.31
6.89

6.13
4.20
6.11

6.60
4.34
6.82

6.37
4.22
6.64

6.14
4.38
7.39

6.19
4.35
6.47

6.35
4.52
6.59

6.34
4.38
6.84

6.04
4.26
6.90

6.27
4.36
6.39

6.25
4.35
6.44

6.13
4.18
6.72

5.59
4.07
8.03

8.39
-.3 9

8.53
-.1 4

8.46
- .2 7

8.16
- .2 0

8.34
- .2 5

8.50
- .4 7

8.29
-.3 4

8.11
-.1 9

8.11
- .2 0

8.63
-.1 6

8.84
- .2 9

8.22
- .1 6

8.00
-.1 9

8.17
- .1 4

8.33
-.2 3

8.41
-.2 5

8.41
-.2 7

3.72

4.86

5.77

9.15

6.69

5.21

4.77

6.79

9. 18

6.36

7.29

7.76

9.14

9.22

8.68

6.43

6.35

2.48
12.51
.40
56.92
15.56
1.69

2.85
13.57
.47
55.59
16.84
2.07

2.49
9.11
.34
61.88
14.08
1.96

Ratios on selected types of assets:
Percentage o f total assets:

Securities:3
U.S. Treasury securities.....................................
Other U.S. Govt, securities (agencies and cor­
porations) .........................................................
Obligations of States and political subdivisions
All other securities..............................................
Gross loans2.............................................................
Cash assets...............................................................
Real estate assets.....................................................

.92
6.48
.52
57.50
22.47
.90

1.06
9.37
.62
65.54
12.43
1.30

1.60
10.27
.50
60.71
15.58
1.74

4.16
14.03
.80
56.36
12.38
1.77

2.47
11.03
.63
58.62
15.42
1.58

2.05
11.13
.60
60.61
15.10
1.89

1.63
8.76
.63
57.44
19.63
1.09

2.35
12.74
1.32
60.39
12.33
1.45

2.31
14.15
.72
56.92
12.66
1.46

2.96
12.84
.32
59.70
14.17
1.83

3.05
13.30
.71
56. 12
15.55
2.09

2.83
11.42
.96
60.15
12.75
1.48

4.26
11.77
.53
55.19
14.93
1.63

3.62
11.36
.26
58.09
12.27
1.42

Commercial and industrial loans...........................
Loans to farm ers.....................................................
Real estate loans.....................................................
Loans to individuals for personal expenditures...
All other loans2.......................................................

47.93
.13
9.94
8.11
33.89

49.93
.75
5.97
6.37
36.98

35.63
1.60
21.48
17.54
23.75

24.92
5.03
30.87
27.57
11.61

34.51
2.60
22.16
19.08
21.65

38.69
.28
23.46
20.06
17.51

42.14
.30
16.38
12.59
28.59

31.92
1.03
30.04
19.90
17.11

29.87
.96
26.29
24.30
18.58

29.18
1.09
24.55
30.61
14.57

31. 18
1.10
20.88
30.88
15.96

33.17
2.33
24.45
16.78
23.27

29.03
3.53
22.67
24.60
20.17

29.98
10.43
26.54
20.67
12.38

27.08
14.86
15.98
23.03
19.05

35.42
5.45
13.89
19.48
25.76

32.79
3.56
27.30
17.07
19.28

Other ratios (per cent):
Interest on time and savings deposits to time and
savings deposits........................ ..............................
Income taxes to net income plus income taxes........
Time and savings deposits to total deposits.............
Total capital accounts and reserves to total assets 5.

7.03
25.96
40.63
8.56

6.89
15.90
56.58
7.89

5.95
20.56
53.07
7.60

5.26
18.49
57.38
8.03

5.82
20.54
52.94
7.96

5.93
23.50
45.25
8.26

6.41
22.85
45.26
8.47

5.36
13.46
58.26
8.39

5.38
17.43
58.41
8.91

5.48
21.45
51.76
8.00

5.70
18.18
50.41
7.96

5.78
18.03
59.77
7.77

5.48
19.74
49.85
8.09

5.61
26.34
59.25
7.75

5.59
23.51
49.20
8.17

5.89
19.96
47.38
7.64

5.76
21.47
59.74
6.78

Number of banks 6 ..........................................................

13

9

156

5,557

5,735

212

331

281

456

379

607

936

431

501

816

642

143

Percentage o f gross loans:2

BANKS, 1973
A 95




JUNE 1974 o MEMBER

F o r notes see p. A-99.

A 96
MEMBER

INCOME RATIOS OF OTHER LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT
(Computed from aggregate dollar amounts; ratios expressed as percentages)

Item
Boston

New
York

Phila­
delphia

Cleve­
land

Rich­
mond

Atlanta Chicago

St.
Louis

Minne­
apolis

Kansas
City

Dallas

San
Fran­
cisco

Summary ratios:

Percentage o f equity capital plus all reserves:

Net income.........._...........................................................................................
Cash dividends paid........................................................................................
Percentage o f net income:

10.07
9.89
4.36

10.45
10.32
4.04

12.46
12.46
7.01

10.82
11.38
6.43

12.09
11.68
4.61

10.63
10.91
5.09

10.35
10.19
5.11

8.95
8.81
4.66

10.93
10.84
4.76

11.01
10.94
6.91

10.96
in
O')
1U. 8J
3.51

10.47
in aa
4.66

44.09

39.17

56.30

56.48

39.51

46.72

50.19

52.96

43.92

63.21

32.42

44.70

6.34
1.57
o . Uo
nfi
Z
.29
2.40
7.58
.80
.78

5.48
1.15
1 17
2*
1/
.25
11.71
Ql
6.64
.81
.80

6.07
1.35
2.23
!24
I*j
Z •Z
7.16
.86
.86

5.52
1.10
2 47

.96
1.01

5.73
1.44
2 19
!24
1 86
6!95
.89
.86

6.31
1.42
2.22
.21
2 46
7.35
.79
.81

6.00
1.04
2.75
.20
2.01
7.02
.75
.74

5.69
1.18
1.89
.21
2.41
6.50
.65
.64

5.64
.98
2.01
.11
2.54
6.81
. 73
.72

5.71
11 .1i*t/
2.04
Al
2.33
6.75
• 70
/o
.77

5.41
• OJ
2.06
.03
2.47
6.38
74
. 15

6.12
1 42
2 .85
.25
1.60
7.01
.62
• DZ

69.09

72.95

76.91

70.86

74.75

75.06

75.87

73.11

72.44

74.92

75.89

74.88

4.14
.78
6.23
.90
2.47
3.06
7.36

4.45
.94
6.09
.56
1.02
4.23
6.84

4.90
1.90
6.39
.55
1.93
3.00
8.22

3.72
1.71
4.66
.18
.92
5.08
11.29

5.23
.31
6.68
.34
1.24
4.96
a 5Z
O.

3.96
.54
A*}
0Q. 4Z
.81
3.78
O. Zj

4.58
1.85
k ni
J.
ui
.41
2.99
O 1Z**
A
Z»
8.04

Sources and disposition oi income:
Percentage o f total assets :

Percentage o f total operating income:

Interest on:

Total operating expenses....................................................................
Income after taxes and before securities gains (losses)................................
Net securities gains or losses ( —), after taxes..............................................
All other income (net)....................................................................................




!l9

1.76
6 .71

3.62
1.87
5.13
.33
.82
7.68
11.46

3.44
.91
4.43
.51
1.11
4.96
11.69

2.88
.39
5.85
.75
1.83
4.85
6.54

5.78
1.36
9.27
.89
1.40
4.58
5.86

4.22
1.49
7.80
.26
2.64
3.42
5.42

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

16.25
3.16

12.34
2.52

15.54
2.70

12.15
2.33

15.00
2.42

11.28
1 .V
AC
Z
j

17.25
3.06

.3 7

17.39
3.39

14.08
3.22

15.36
3.58

14.06
2.35

17.60
3.18

27.43
16.44
.44
3.90
3.43
11.31

32.80
15.01
.60
3.76
3.15
9.96

31.13
16.08
1.49
3.46
2.48
11.20

36.88
12.63
.24
2.90
2.28
10.93

31.50
9.69
.60
3.55
1.67
14.68

30.27
15.71
.54
2.91
2.95
14.07

39.27
17.43
.33
2.90
1.89
8.79

29.13
19.02
.41
3.29
2.92
14.45

29.55
24.20
1.21
1.71
1.40
10.25

30.27
115.A7
C
. 75
2.56
2.84
15.42

32.37
Zj .U/
. Zj
. OU
3.08
1Z.U4

40.73
9.65
^62
OJ
1J . AS
z.
9 91

83.73

82.58

84.78

82.27

82.47

85.86

85.47

87.46

82.80

84.55

84.74

87.35

17.53
12.85
- .3 4
- .1 0

14.14
10.75
.22
.06

14.53
10.73
-.1 8
.01

12.54
10.09
-.0 7
- .0 9

17.20
10.77
- .0 9

15.45
11.62
-.0 7
-.0 1

15.26
1111. "7
/I1
-.1 3

12.65
0 . an
O
7U
-.0 2
-.0 1

12.41

11.03

10.56

9.93

10.68

11.54

11.58

8.87

16.27
10.60
- .2 0

17.42
12.29
- .1 8
.02

15.22
12.12
-.0 5
.02

17.73
14.42
.59
.16

10.40

12.13

12.09

15.17

BANKS, 1973 □ JUNE 1974

Federal Reserve district

Rates of return:
On securities—Interest and dividends: 3

6.00
5.72
4.12
4.85

5.96
6.57
4.42
6.54

5.29
6.31
4.26
6.20

5.78
5.82
4.47
7.88

5.90
6.01
4.27
6.65

5.61
6.80
4.56
6.46

5.53
6.40
4.46
6.42

5.48
6.20
4.29
6.49

4.97
6.47
4.48
6.71

5.85
5.35
4.34
5.28

5.68
6.08
4.12
6.28

5.26
5.66
4.04
8.66

9.01
- .8 4

8.39
-.3 8

8.61
-.2 5

8.23
-.2 1

8.69
- .1 5

9.10
-.3 5

8.36
-.1 4

8 .14
-.2 2

8.35
-.1 3

8.52
-.2 4

8.38
-.2 3

8.42
-.2 8

4.57
2.48
9.42
.51
58.09
17.22
1.90

3.84
.92
6.66
.51
57.75
22.04
.92

3.91
.44
9.84
.87
63.99
15.24
1.17

6.71
1.57
13.92
.76
57.75
14.15
1.32

4.98
1.72
12.69
.27
59.77
16.52
1.59

5.42
.84
10.03
1.03
60.61
16.81
2.29

5.65
1.04
9.59
.62
63.67
14.15
1.42

5.82
1.99
9.69
.55
58.40
17.61
1.64

5.10
1.80
7.09
.18
59.13
15.97
1.23

6.03
.39
10.39
.44
59.36
18.51
1.82

4.45
.57
13.06
.38
57.80
18.15
2.24

6.10
2.30
8.68
.33
62.32
14.40
1.86

52.16
.05
9.46
11.22
27.11

47.22
.15
10.65
8.55
33.43

42.13
.09
17.58
14.88
25.32

37.64
.03
19.30
18.10
24.93

33.65
.34
19.92
27.46
18.63

35.90
.31
14.52
28.16
21.11

41.15
.57
16.00
10.26
32.02

37.28
.40
14.13
20.41
27.78

45.50
.85
14.00
16.27
23.38

30.81
6.03
14.12
21.03
28.01

39.54
1.19
11.46
12.48
35.33

33.79
3.08
26.74
15.29
21.10

Interest on time and savings deposits to time and savings deposits.
Income taxes to net income plus income taxes................................
Time and savings deposits to total deposits......................................
Total capital accounts and reserves to total assets5.........................

7.16
26.55
39.46
8.57

6.97
25.82
41.43
8.53

6.02
16.99
49.57
8.50

5.76
17.82
55.48
9.18

5.66
21.06
47.34
8.01

6.23
18.76
46.36
8.13

6.38
17.26
55.99
7.73

6.01
15.42
42.49
7.84

6.44
34.05
44.87
7.96

6.14
22.04
42.63
7.89

6.34
18.58
43.90
7.21

5.89
21.97
59.94
6.71

Number of banks6.........................................................................................

4

16

6

16

15

20

24

15

8

18

17

19

U.S. Treasury securities.................................................................
Other U.S. Govt, securities (agencies and corporations).............
Obligations of States and political subdivisions...........................
All other securities..........................................................................

On loans:2

Interest, fees, and other loan incom e........... ................................
Net loan losses ( —) or recoveries4................................................

Ratios on selected types of assets:
Percentage o f total assets:

Securities:3
U.S. Treasury securities..............................................................
Other U.S. Govt, securities (agencies and corporations)..........
Obligations of States and political subdivisions.......................
All other securities......................................................................
Gross loans2....................................................................................
Cash assets......................................................................................
Real estate assets............................................................................
Percentage o f gross loans:2

Commercial and industrial loans...................................................
Loans to farmers.............................................................................
Real estate loans.............................................................................
Loans to individuals for personal expenditures............................
All other loans2..............................................................................

Other ratios (per cent):

F o r notes see p. A-99.

JUNE 1974 □ MEMBER
BANKS, 1973
A 97




A 98
MEMBER

INCOME RATIOS OF OTHER-THAN-LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT
(Computed from aggregate dollar amounts; ratios expressed as percentages)

Item
Boston

New
York

Phila­
delphia

Cleve­
land

Rich­
mond

Atlanta Chicago

St.
Louis

Minne­
apolis

Kansas
City

D allas

San
Fran­
cisco

Summary ratios:

Percentage o f equity capital plus all reserves:

Income after taxes and before securities gains (losses)1.
Net income.......... ...............................................................
Cash dividends paid...........................................................

Percentage o f net income:

Cash dividends p aid .. . .

9.59
9.51
4.47

10.48
10.46
4.78

11.27
11.30
4.19

11.23
11.18
3.87

12.07
12.19
4.41

12.78
12.78
3.86

11.44
11.37
3.42

12.00
12.07
3.07

12.30
12.04
3.81

12.67
12.74
3.57

12.53
12.60
3.36

10.78
10.91
3.88

47.00

45.73

37.07

34.64

36.22

30.22

30.12

25.43

31.66

28.07

26.67

35.60

5.92
1.66
2.23
.32
1.71
6.92
.74
.74

5.60
1.43
2.52
.30
1.35
6.55
.81
.81

5.24
1.16
2.86
.20
1.02
6.29
.90
.90

5.34
1.20
2.68
.19
1.27
6.52
.93
.93

5.78
1.46
2.54
.22
1.56
7.01
.93
.93

5.58
1.35
2.48
.20
1.55
6.81
.97
.97

5.51
1.22
2.92
.21
1.16
6 .60
.85
.85

5.00
1.18
2.55
.19
1.08
6.29
.97
.98

5.50
1.16
3.10
.17
1.07
6.69
.87
.86

5.28
1.30
2.43
.18
1.37
6.66
1.01
1.02

5.26
1.23
2.45
.20
1.38
6.52
.98
.98

6.02
1.66
2.57
.29
1.50
6.87
.67
.68

73.65

68.49

68.98

68.20

72.83

68.06

68.05

65.23

69.59

68.76

69.32

72.15

4.57
1.67
7.45
.63
3.14
4.68
4.21

6.89
3.98
10.11
1.13
3.01
2.72
3.67

8.95
4.14
10.26
1.89
1.92
1.73
2.13

11.19
3.19
9.47
.68
2.57
1.83
2.87

6.72
3.67
8.20
.33
2.76
1.46
4.03

7.43
4.01
10.04
.53
3.68
1.87
4.38

9.25
4.76
8.89
1.47
2.48
1.83
3.27

11.78
6.08
9.25
.59
2.55
1.46
3.06

9.89
4.22
8.74
.28
3.18
.81
3.29

9.21
3.39
8.90
.40
3.85
1.31
4.18

7.85
4.59
9.13
.60
3.96
1.16
3.39

6.46
2.81
6.96
.26
4.46
1.77
5.13

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

20.12
3.97

18.31
3.54

15.63
2.89

15.88
2.65

17.83
3.04

16.97
2.85

15.83
2.75

16.15
2.60

14.72
2.65

16.98
2.64

16.43
2.45

20.90
3.24

32.23
6.16
.25
4.71
2.71
15.39

38.44
4.89
.44
4.65
1.77
13.45

45.51
1.11
.35
3.28
1.32
13.24

41.23
2.21
.27
2.96
1.88
14.92

36.24
4 .06
.33
3.27
1.99
15.60

36.38
4.45
.24
2.96
2.30
15.83

44.30
2.84
.36
3.27
1.61
12.50

40.61
1.44
.17
3.13
1.62
13.80

46.44
1.37
.49
2.59
1.46
12.57

36.54
3.68
.31
2.75
2.26
14.16

37.60
3.39
.23
3.14
2.56
14.88

37.39
3.37
.89
4.25
2.54
14.98

85.54

85.49

83.33

82.00

82.36

81.98

83.46

79.52

82.29

79.32

80.68

87.56

18.00
14.35
- .0 9
.03

17.64
13.25
-.1 0
.22

18.02
14.31
-.1 1
.11

16.54
12.97
-.0 6
-.0 3

20.48
15.54
.10
-.0 1

17.71
13.13
-.2 8

20.68
15.28
.02
.07

19.32
15.01
-.0 5
.13

12.44
9.79
.05
.06

14.29

13.37

14.31

12.88

15.63

12.85

15.37

15.09

9.90

Sources and disposition of income:
Percentage o f total assets:

Total operating expenses...................................................
Salaries, wages, and fringe benefits...............................
Interest on time and savings deposits...........................
Occupancy expense of bank premises, net...................
All other operating expenses. . ...................................
Total operating income.....................................................
Income after taxes and before securities gains (losses)1..
Net income..........................................................................

Percentage o f total operating income:

Interest, fees, and other loan income2.................................
Securities—Interest and dividends:3....................................
U.S. Treasury securities....................................................
Other U.S. Govt, securities (agencies and corporations).
Obligations o f States and political subdivisions..............
All other securities.............................................................
Service charges on deposit accounts....................................
Trust department income......................................................
All other operating income...................................................
Total operating income.
Salaries and wages.......................................
Officer and employee benefits.....................
Interest on:
Time and savings deposits......................
Borrowed money.....................................
Capital notes and debentures.................
Occupancy expense of bank premises, net.
Provision for loan losses.............................
All other operating expenses......................
Total operating expenses.
Income before taxes and securities gains (losses)..........
Income after taxes and before securities gains (losses).
Net securities gains or losses ( —), after taxes...............
All other income (net).....................................................

14.46
10.81
-.1 5
.06

14.51
12.46
-.2 0
.17

16.67
14.31
.08
- .0 4

Net income.......................................................................

10.72

12.43

14.35




BANKS, 1973 □ JUNE 1974

Federal Reserve district

Rates of return:

On securities— Interest and dividends : 3

5.64
6.48
4.23
6.72

5.78
6.62
4.25
7.30

5.98
6.37
4.20
6.85

5.89
6.35
4.27
6.66

6.17
6.26
4.43
6.34

6.04
6.30
4.50
6.75

5.94
6.32
4.31
7.08

6.05
5.99
4.24
7.33

5.86
6.23
4.33
6.28

6.09
6.30
4.35
7.17

6.24
6.13
4.24
6.99

5.75
5.37
4.15
4.93

8.20
-.2 6

7.95
-.1 9

7.60
- .1 4

7.96
- .1 8

8.57
-.1 7

8.66
' -.2 5

8.03
- .1 7

7.86
-.1 6

8.09
- .1 4

8.23
- .2 2

8.44
-.2 6

8.34
-.2 1

5.60
1.78
12.17
.65
62.14
13.81
1.88

7.81
3.94
15.59
1.01
56.43
11.79
1.63

9.43
4.09
15.38
1.73
57.10
9.67
1.70

12.37
3.28
14.46
.67
55.85
10.73
1.65

7.64
4.11
12.98
.37
59.62
11.99
2.05

8.38
4.33
15.19
.53
53.53
14.82
1.98

10.28
4.98
13.62
1.37
55.95
11.08
1.55

12.23
6.38
13.70
.50
52.20
12.42
1.62

11.28
4.53
13.49
.29
57.58
10.42
1.51

10.07
3.58
13.62
.37
55.64
14.00
1.62

8.20
4.88
14.03
.56
53.61
15.67
1.91

7.72
3.59
11.52
.37
59.44
12.32
2.49

Commercial and industrial loans........................................................
Loans to farm ers....................................................................................
Real estate lo a n s ....................................................................................
Loans to individuals for personal expenditures...............................
All other loans2 .....................................................................................

31.03
.41
31.41
25.09
12.06

25.26
.77
35.43
26.03
12.51

21.47
2.00
42.78
25.04
8.71

19.49
2.19
35.63
32.58
10.11

25.02
1.78
28.85
33.54
10.81

28.09
1.62
25.04
32.66
12.59

22.30
4.73
35.97
25.66
11.34

20.42
6.80
31.59
28.97
12.22

22.02
15.34
32.96
22.92
6.76

24.98
19.82
17.02
24.15
14.03

31.47
9.54
16.23
26.21
16.55

26.95
6.33
30.57
27.39
8.76

O ther ratios (per cent):
Interest on time and savings deposits to time and savings deposits,
Incom e taxes to net income plus income taxes...................................
Time and savings deposits to total deposits.......................................
Total capital accounts and reserves to total assets5.........................

5.40
21.40
48.28
8.07

5.22
11.46
56.23
8.26

4.97
10.10
64.95
8.29

4.98
16.89
61.75
8.57

5.35
21.78
55.67
7.99

5.45
17.91
52:50
7.86

5.22
18.82
63.73
7.82

5.17
22.18
55.60
8.31

5.38
22.52
64.88
7.64

5.38
24.08
52.33
8.32

5.59
20.86
50.01
8.03

5.09
18.89
58.73
7.16

208

315

275

440

364

587

912

416

493

798

625

124

U.S. Treasury securities.....................................................................
O ther U.S. Govt, securities (agencies and corporations)............
O bligations o f States and political subdivisions...........................
All other securities...............................................................................
On lo a n s:2

Interest, fees, and other loan incom e.............................................. .
N et loan losses ( —) o r recoveries4..................................................
Ratios on selected types of assets:
Percentage o f to ta l a s se ts :

Securities: 3
U.S. Treasury securities...................................................................
O ther U.S. G ovt, securities (agencies and corporations)..........
Obligations o f States and political subdivisions.........................
All other securities.............................................................................
G ross loans2............................................................................................
C ash assets..............................................................................................
R eal estate assets................................................................................. .
Percentage o f gross lo a n s:2

Number of banks6.........................................................................................

equally important influence on the result. In the ratios based
on aggregates presented here, the experience of those banks in
each group whose figures are largest have a much greater in­
fluence than that of the many banks with smaller figures.
Ratios based on aggregates show combined results for the
banking system as a whole, and, broadly speaking, are the
more significant for purposes of general analyses of credit
and monetary problems, while averages of individual ratios
are useful primarily to those interested in studying the financial
results of operations of individual banks.

BANKS, 1973
A 99




5 Includes capital notes and debentures and all valuation
reserves.
6 Excludes two member banks located outside the continen­
tal United States.
N o te . —The ratios in this and the preceding two tables were
computed from the dollar aggregates shown in preceding
tables. Many of these ratios vary substantially from the aver­
age of individual bank ratios, (which will be published in a
subsequent issue) in which each bank’s figures—regardless of
size or amount—are weighted equally and in general have an

JUNE 1974 □ MEMBER

1 Excludes minority interest in operating income, if any.
2 Loans include Federal funds sold and securities purchased
under agreements to resell.
3 Excludes trading-account securities.
4 Sum of the expense item “provision for loan losses” for
banks not on a reserve accounting method and the excess of
losses charged against reserves for losses on loans over re­
coveries credited to these reserves for banks on a reserveaccounting method.

BOARD OF GOVERNOFtS
OF THE FEDERAL RESERVE SYSTEM
A r t h u r F. B u r n s ,

Chairman

G eo rg e W . M itc h e ll,

A n d r e w F . B r im m e r
R obert

C.

John

E.

Sh eeh an

H o lla n d

OFFICE O F M ANAGING DIRECTOR FOR
OP ER ATIO N S AND SUPERVISION
D a v i d C . M e l n i c o f f , M anaging D irector
D a n i e l M . D o y l e , D epu ty M anaging

D irector
G o r d o n B . G rim w o o d , A ssistan t D irector

and Program D irecto r fo r
Contingency Planning
W i l l i a m W . L a y t o n , D irecto r of Equal
E m ploym ent
B r e n t o n C . L e a v i t t , Program D irector
fo r Banking Structure

H en ry

OFFICE OF BOARD MEMBERS
* R o b e r t S o l o m o n , A d viser to the B oard
J o s e p h R . C o y n e , A ssistan t to the B oard
J o h n S . R ip p e y , A ssistan t to the B oard
J o h n J. H a r t , S pecial A ssistan t to the B oard
F r a n k O ’B r i e n , J r ., Special A ssistan t to the

B oard
D o n a l d J. W i n n , Special A ssista n t to the

B oard

LEGAL DIVISION

DIVISION OF FEDERAL RESERVE BANK
OPERATIONS

T h o m a s J. O ’C o n n e l l , G eneral Counsel
J o h n N i c o l l , D eputy G eneral Counsel
R o b e r t S. P l o t k i n , A ssistan t G eneral

Counsel
R o n a l d G . B u r k e , D irecto r
J a m e s R . K u d l i n s k i , A sso cia te D irector
E . M a u r i c e M c W h i r t e r , A ssociate

D irecto r
W a l t e r A . A l t h a u s e n , A ssista n t D irector
H a r r y A . G u i n t e r , A ssistan t D irector
P . D . R i n g , A ssistan t D irecto r




B a l d w i n B . T u t t l e , A ssistan t G eneral

Counsel
C h a r l e s R . M c N e i l l , A ssistan t to the

General Counsel
A n d r e w F . O e h m a n n , A ssista n t to the

General Counsel
G r i f f i t h L . G a r w o o d , A d viser

Vice Chairman

J e ffr e y M . B u ch er

C.

W a llic h

OFFICE OF MANAGING DIRECTOR FOR
RESEARCH AND ECONOMIC POLICY
J. C h a r l e s P a r t e e , M anaging D irector
S t e p h e n H . A x i l r o d , A d viser to the B oard
S a m u e l B . C h a s e , J r ., A d viser to the B oard
A r t h u r L . B r o i d a , A ssistan t to the B oard
M u r r a y A l t m a n n , S pecial A ssistan t to the

B oard

DIVISION OF RESEARCH AND STATISTICS
J. C h a r l e s P a r t e e , D irector
L y l e E . G r a m l e y , D eputy D irector
J a m e s L . P i e r c e , A sso cia te D irector
P e t e r M . K e i r , A d viser
S t a n l e y J. S i g e l , A d viser
M u r r a y S . W e r n i c k , A d viser
K e n n e t h B . W i l l i a m s , A d viser
J a m e s B . E c k e r t , A ssociate A d viser
E d w a r d C . E t t i n , A ssociate A d viser
R o b e r t J. L a w r e n c e , A ssociate A d viser
E l e a n o r J. S t o c k w e l l , A ssociate A d viser
J o s e p h S . Z e i s e l , A ssociate A d viser
J a m e s L . K i c h l i n e , A ssistan t A d viser
S t e p h e n P . T a y l o r , A ssistan t A d viser
T h o m a s D . T h o m s o n , A ssistan t A d viser
L o u i s W e i n e r , A ssista n t A d viser
H e l m u t F . W e n d e l , A ssistan t A d viser
L e v o n H . G a r a b e d i a n , A ssistan t D irector

DIVISION OF DATA PROCESSING

OFFICE OF THE SECRETARY

C h a r le s L. H am pton , D irector
H e n r y W . M e e t z e , A ssociate D irector
G le n n L. Cum m ins, A ssistan t D irector
W a r r e n N . M in am i, A ssistan t D irector

C h e s te r B. F e ld b e r g , Secretary
T h e o d o r e E. A llis o n , A ssistan t Secretary
Norm a n d R. V. B e r n a r d , A ssistan t
Secretary
E liz a b e t h L. C a r m ic h a e l, A ssistan t
S ecretary

DIVISION OF PERSONNEL
K e ith D . E n g str o m , D irector
C h a r le s W . W o o d , A ssistan t D irector

OFFICE OF THE CONTROLLER
J oh n K a k a le c , C on troller
J oh n M. D e n k le r , A ssistan t Controller

DIVISION OF ADMINISTRATIVE SERVICES
W a l t e r W . K reim a n n , D irector
D o n a ld E. A n d e r so n , A ssistan t D irector
J oh n D . S m ith , A ssista n t D irector




DIVISION OF SUPERVISION
AND REGULATION
F r e d e r ic S o lo m o n , D irector
B r e n to n C. L e a v it t , D eputy D irector
F re d e ric k R. D a h l, A ssistan t D irector
Jack M. E g e r t s o n , A ssistan t D irector
J a n e t O. H a r t, A ssistan t D irector
Joh n N . L y o n , A ssistan t D irector
Joh n T. M c C lin to c k , A ssistan t D irector
Thom as A. Sidm an, A ssistan t D irector
W illia m W. W ile s , A ssistan t D irector

*On leave of absence.

DIVISION OF INTERNATIONAL FINANCE
R a lp h C. B r y a n t , D irecto r
Joh n E. R e y n o ld s , A sso cia te D irector
P a u l W o n n a c o t t , A ssociate D irector
R o b e r t F. G em m ill, A d viser
R eed J. Ir v in e , A d viser
S a m u e l I. K a t z , A d viser
B e r n a r d N o r w o o d , A d viser
S a m u e l P iz e r , A d viser
G e o r g e B. H e n r y , A sso cia te A d viser
H e le n B. J u n z , A ssociate A d viser
fNoRMAN S. F ie le k e , A ssistan t A dviser
tO n loan from the Federal Reserve Bank of Boston.

A 102

FEDERAL OPEN MARKET COMMITTEE
A r t h u r F. B u r n s ,
R ob ert

P.

Chairman

B la c k

A lfr e d H ayes,

G eo r g e H. C la y

C.

A n d r e w F . B r im m e r

R ob ert

Je ff r e y M . B u c h e r

M o n r o e K im b r e l

Vice Chairman

E.

John

H o lla n d

H en ry

C.

Sheehan
W a llic h

W il l is J. W i n n

G e o r g e W . M it c h e l l

A r t h u r L. B ro id a , Secretary
M u r r a y A ltm a n n , D eputy Secretary
N orm and R. V. B e r n a r d , A ssistant
Secretary
Thom as J. O ’C o n n e l l, G eneral Counsel
E d w ard G . G u y , D eputy G eneral Counsel
John N i c o l l , A ssistant G eneral Counsel
J. C h a r le s P a r t e e , Senior Econom ist
S te p h en H. A x ilr o d , Econom ist
(D om estic Finance)

* R o b ert S o lo m o n , Econom ist
(International Finance)
H a rry B r a n d t, A ssociate Econom ist
R a lp h C. B r y a n t , A ssociate Econom ist
R ich a rd G. D a v is, A ssociate Econom ist
R aym ond J. D o l l , A ssociate Econom ist
L y le E. G r a m le y , A ssociate Econom ist
W illia m J. H o c te r , A ssociate Econom ist
James P a rth em o s, A ssociate Econom ist
James L. P ie r c e , A sso cia te Econom ist
J oh n E. R e y n o ld s , A ssociate Econom ist

A la n R. H olm es, M anager, System Open M arket A ccount
C h a r le s A. Coombs, S pecial M anager, System Open M arket A ccount
P e te r D. S t e r n l i g h t , D eputy M anager, System Open M arket A ccount

FEDERAL ADVISOFiY COUNCIL
Thom as I. S to r r s , f i f t h f e d e r a l r e s e r v e d is t r ic t , President
James F. E n g lis h , J r., f ir s t f e d e r a l r e s e r v e d is t r ic t , Vice President
G abriel H a u g e ,

second federal

James F. B o d in e ,

third federal

reserve district

C lair E. F u l t z ,

fourth federal

G eorge H. D ix o n ,

sixth federal

reserve district

E ugene H. A dam s ,
L ewis H. B o n d ,




tenth federal

eleventh federal

reserve district
seventh federal

H arold A. R ogers ,
reserve district

H e r b e r t V. P r o c h n o w , Secretary
W illia m J. K o rsv ik , A ssistant Secretary

*On leave of absence.

ninth federal

reserve district

L awrence A. M errigan ,

reserve district

eighth federal

reserve district

reserve district

A llen P. S t u l ts ,

D onald E. L asater ,
reserve district

reserve district

twelfth federal

A 103

FEDERAL RESERVE BANKS AND BRANCHES
Federal Reserve Bank,
branch, or facility
Zip code

Chairman
Deputy Chairman

President
First Vice President

Boston ......................

02106

James S. Duesenberry
Louis W. Cabot

Frank E. Morris
James A. McIntosh

New York................

10045

Roswell L. Gilpatric
Frank R. Milliken
Norman F. Beach

Alfred Hayes
Richard A. Debs

B u ffa lo .................. ....1 4 240

A. A. Maclnnes, Jr.

Philadelphia ..........

19101

John R. Coleman
Edward J. Dwyer

David P. Eastburn
Mark H. Willes

Cleveland ................

44101

Willis J. Winn
Walter H. MacDonald

Cincinnati ............
Pittsburgh ............

45201
15230

Horace A. Shepard
Robert E. Kirby
Graham E. Marx
Richard Cyert
Robert W. Lawson, Jr.
E. Craig Wall
James G. Harlow
Charles W. DeBell

Robert P. Black

H. G. Pattillo
Clifford M. Kirtland, Jr.
William C. Bauer
Gert H. W. Schmidt
Edward J. Boling
Edwin J. Caplan

Monroe Kimbrel
Kyle K. Fossum

William H. Franklin
Peter B. Clark
W .M. Defoe

Robert P. Mayo
Ernest T. Baughman

Edward J. Schnuck
Sam Cooper
W.M. Pierce
James C. Hendershot
C. Whitney Brown

Darryl R. Francis
Eugene A. Leonard

Bruce B. Dayton
James P. McFarland
William A. Cordingley

Bruce K. MacLaury
Clement A. Van Nice

Robert W. Wagstaff
Robert T. Person
Maurice B. Mitchell
Joseph H. Williams
Durward B. Varner

George H. Clay
John T. Boysen

John Lawrence
Charles T. Beaird
Gage Holland
T.J. Barlow
Marshall Boykin, III

Philip E. Coldwell
T. W. Plant

O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
John R. Howard
Sam H. Bennion
C. Henry Bacon, Jr.

John J. Balles
John B. Williams

Richm ond .......................23261
B altim ore....................21203
Charlotte..................... 28201

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne
J. Gordon Dickerson, Jr.

Culpeper Communications
C enter ..................... 22701
Atlanta ....................

30303

Birm ingham .........
Jacksonville .........
N ashville...............
New Orleans
Miami Office.........

35202
32203
37203
70161

33152

Chicago....................

60690

D etroit....................

48231

St. L ouis...................

63166

Little R o ck ............
L o u isv ille..............
M em phis...............

72203
40201
38101

Minneapolis ............

55480

H elen a....................

59601

Kansas C ity .............

64198

Denver ..................
Oklahoma City ....
Omaha ..................

80217
73125
68102

D a lla s.......................

75222

El P a s o ..................
H ou ston .................
San A n to n io .........

79999
77001
78295

San Francisco.........

94120

Los A n g e le s.........
Portland.................
Salt Lake C ity ......
S ea ttle....................

90051
97208
84110
98124




Vice President
in charge of branch

Hiram J. Honea
Edward C. Rainey
Jeffrey J. Wells
George C. Guynn
W. M. Davis

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

Howard L. Knous

George C. Rankin
William G. Evans
Robert D. Hamilton

Frederic W. Reed
James L. Cauthen
Carl H. Moore

Gerald R. Kelly
William M. Brown
A. Grant Holman
Paul W. Cavan

A 104

FEDERAL RESERVE BOARD PUBLICATIONS
A vailable from Publications Services, D ivision o f A dm in istrative Services, B oard of G overnors o f the Federal
R eserve System , W ashington, D .C . 20551. W here a charge is indicated, rem ittance should accom pany request
and be made payable to the order o f the B o a rd o f G overnors o f the Federal R eserve System in a form collectible
a t p a r in U .S. currency. (Stam ps and coupons are not accepted.)

ANNUAL REPO RT
FEDERAL RESERVE BULLETIN. M on th ly. $ 6 .0 0 per
year or $ .6 0 each in the U n ited States and its
p o ss e ss io n s, B o liv ia , C anada, C h ile, C olom b ia,
C osta R ica , C uba, D om in ican R ep u b lic, E cuador,
G u atem ala, H aiti, R ep u b lic o f H onduras, M e x ic o ,
N icaragu a, P anam a, Paraguay, P eru, El S alvad or,
U ru gu ay, and V en ezu ela; 10 or m ore o f sam e issu e
to o n e a d d ress, $ 5 .0 0 per year or $ .5 0 each . E ls e ­
w h ere, $ 7 .0 0 per year or $ .7 0 each .
FEDERAL RESERVE CHART BOOK ON FINANCIAL
AND B U SIN E SS STATISTICS. M on th ly. S u b scrip ­
tion in clu d es o n e issu e o f H istorical Chart B o o k .
$ 6 .0 0 per year or $ .6 0 each in the U n ited States
and the cou n tries listed ab ove; 10 or m ore o f sam e
issu e to o n e ad d ress, $ .5 0 each . E lsew h ere, $ 7 .0 0
per year or $ .7 0 each .
HISTORICAL CHART BOOK. Issu ed an n u ally in S ep t.
Subscription to m onth ly chart b ook in clu d es on e
issu e. $ .6 0 each in the U n ited States and countries
listed a b ove; 10 or m ore to on e ad d ress, $ .5 0 each .
E lsew h ere, $ .7 0 each .
THE FEDERAL RESERVE ACT, as am ended through
D ecem b er 1 9 7 1 , w ith an app en d ix con tain in g p ro­
v isio n s o f certain other statutes affectin g the Federal
R eserv e S y stem . 2 5 2 pp. $ 1 .2 5 .
REGULATIONS OF THE BOARD OF G O VERNO RS OF
THE FEDERAL RESERVE SYSTEM .
PUBLISHED INTERPRETATIONS OF THE BOARD OF
G O VERNO RS, as o f D ecem b er 3 1 , 1973. $ 2 .5 0 .
DEBITS AND CLEARING STATISTICS AND THEIR USE.
1 9 5 9 . 144 p p . $ 1 .0 0 each; 10 or m ore to on e
address, $ .8 5 each .
SUPPLEM ENT TO BANKING AND MONETARY STA­
TISTICS. S e c . 1 . B an k s and the M onetary S y stem .
1 9 6 2 . 35 p p. $ .3 5 . S e c . 2. M em ber B an k s. 1967.
5 9 pp. $ .5 0 . S e c . 5. Bank D eb its. 1966. 36 pp.
$ .3 5 . S e c . 6 . B ank In com e. 1 966. 2 9 pp. $ .3 5 .
S e c . 9. Federal R eserv e B anks. 1965. 3 6 pp. $ .3 5 .
S e c . 10. M em b er B ank R eserv es and R elated Item s.
19 6 2 . 6 4 pp. $ .5 0 . S e c . 11. C urrency. 1963. 11
pp. $ .3 5 . S e c . 12. M o n ey R ates and S ecu rities
M arkets. 1 9 6 6 . 182 p p . $ .6 5 . S e c . 14. G old . 1962.
2 4 p p. $ .3 5 . S e c . 15. International F in an ce. 1962.
9 2 pp. $ .6 5 . S e c . 16 (N e w ). C onsum er Credit.
1 9 6 5 . 103 pp. $ .6 5 .
INDUSTRIAL PRODUCTION— 1971 ed ition . 383 pp.
$ 4 .0 0 each ; 10 or m ore to on e ad d ress, $ 3 .5 0 each .
BANK M ERGERS & THE REGULATORY AGENCIES:
APPLICATION OF THE BANK MERGER ACT OF
1960. 1964. 2 6 0 pp. $ 1 .0 0 each ; 10 or m ore to
o n e ad d ress, $ .8 5 each .
THE PERFORMANCE OF BANK HOLDING COMPA­




NIES. 1967. 2 9 pp. $ .2 5 each ; 10 or m ore to on e
address, $ .2 0 each .
THE FEDERAL FUNDS MARKET. 19 5 9 . I l l pp. $ 1 .0 0
each ; 10 or m ore to o n e ad d ress, $ .8 5 each .
TRADING IN FEDERAL FU NDS. 1965. 116 pp. $ 1 .0 0
each; 10 or m ore to o n e ad d ress, $ .8 5 each .
< U .S . T R E A S U R Y A D V A N C E R E F U N D IN G , JU N E
1960-JU L Y 1964. 1 966. 65 pp. $ .5 0 each; 10 or
m ore to on e ad d ress, $ .4 0 each .
BANK CREDIT-CARD AND CHECK-CREDIT PLANS.
1 968. 102 pp. $ 1 .0 0 each ; 10 or m ore to on e
ad d ress, $ .8 5 each .
INTEREST RATE EXPECTATIONS: TE STS ON YIELD
SPR E A D S AMONG SHORT-TERM GOVERNMENT
SECURITIES. 1 9 6 8 . 83 pp. $ .5 0 each ; 10 or m ore
to o n e address, $ .4 0 each .
SURVEY OF FINANCIAL CHARACTERISTICS OF
CO NSUM ERS. 1966. 166 pp. $ 1 .0 0 each ; 10 or
m ore to o n e ad d ress, $ .8 5 each .
SURVEY OF CHANGES IN FAMILY FINANCES. 1 9 68.
321 pp. $ 1 .0 0 each ; 10 or m ore to on e address,
$ .8 5 each .
REPORT OF THE JOINT TREASURY-FEDERAL RE­
SERVE STUDY OF THE U.S. GOVERNMENT S E ­
CURITIES MARKET. 1 9 6 9 . 4 8 pp. $ .2 5 each; 10
or m ore to o n e ad d ress, $ .2 0 each .
JOINT TREASURY-FEDERAL RESERVE STUDY OF
THE G O V E R N M E N T S E C U R IT IE S MARKET:
STAFF STUDIES— PART 1 .1 9 7 0 . 86 pp. $ .5 0 each ;
10 or m ore to o n e ad d ress, $ .4 0 each . PART 2.
1 9 7 1 . 153 pp. and PART 3. 1973. 131 pp. Each
v o lu m e $ 1 .0 0 ; 10 or m ore to o n e ad d ress, $ .8 5
each .
O PEN MARKET POLICIES AND OPERATING P R O C E­
DU R E S— STAFF STUDIES. 1971. 2 1 8 pp. $ 2 .0 0 ;
10 or m ore to o n e ad d ress, $ 1 .7 5 each .
REAPPRAISAL OF THE FEDERAL RESERVE DIS­
COUNT MECHANISM, V o l. 1. 1971. 2 7 6 pp. V o l.
2. 1971. 173 pp. V o l. 3. 1972. 2 2 0 pp. Each
v o lu m e $ 3 .0 0 each ; 10 or m ore to o n e address,
$ 2 .5 0 each .
THE ECONOMETRICS OF PRICE DETERMINATION
CO NFERENCE, O ctober 3 0 -3 1 , 1 9 7 0 , W ash in gton ,
D .C . O ct. 1 9 7 2 , 397 pp. C loth ed . $ 5 .0 0 each ;
10 or m ore to o n e address, $ 4 .5 0 each . Paper ed .
$ 4 .0 0 each; 10 or m ore to on e ad d ress, $ 3 .6 0 ea ch .
FEDERAL RESERVE STAFF STUDY: WAYS TO MOD­
ERA TE F L U C T U A T IO N S IN H O U S IN G C O N ­
STRUCTION, D e c . 1 9 7 2 , 4 8 7 pp. $ 4 .0 0 each; 10
or m ore to o n e ad d ress, $ 3 .6 0 each .
LENDING FUNCTIONS OF THE FEDERAL RESERVE
BANKS: A HISTORY, by H ow ard H . H ack ley. 1 9 7 3 .
271 p p. $ 3 .5 0 each ; 10 or m ore to o n e address,
$ 3 .0 0 each .

A 105

STAFF ECONOMIC STUDIES

BU SIN E SS FINANCING BY B U S IN E S S FINANCE COM­
PANIES. 1 0 /6 8 .

Stu dies and p a p e rs on econom ic and financial subjects
that are o f general interest in the field o f econom ic
research.

Summaries only printed in the BULLETIN
(L im ited supply o f m im eographed copies of full
text available upon request fo r single copies)
THE DETERMINANTS OF A DIRECT INVESTMENT
OUTFLOW WITH EMPHASIS ON THE SU PPLY OF
FUN DS, b y Frederic B rill R u ck d esch el. June 1973.
171 pp.
MORTGAGE COMMITMENTS ON INCOME P R O PE R ­
TIES: A NEW SER IES FOR 15 LIFE INSURANCE
COMPANIES, 1 9 5 1 -7 0 , b y R obert M oore F isher and
Barbara N eg ri O pper. A u g . 1 9 7 3 . 83 pp.
THE IMPACT OF HOLDING COMPANY ACQUISITIONS
ON AGGREGATE CONCENTRATION IN BANKING,
by S a m u el H . T a lley . F eb . 1 9 74. 2 4 pp.
OPERATING POLICIES OF BANK HOLDING COMPA­
NIES— PART II: NONBANKING SUBSIDIARIES, by
R obert J. L a w ren ce. M ar. 1974. 5 9 pp.
SH O RT-RUN VARIATIONS IN THE MONEY S T O C K SEASO NAL OR CYCLICAL? b y H erbert M . K au f­
m an and R aym on d E . L om bra. June 1974. 27 pp.

Printed in full in the BULLETIN
(Staff Econom ic Studies shown in list below.
E xcept fo r Staff P apers, Staff Econom ic Studies, and
som e leading articles, m ost of the articles reprinted do
not exceed 12 p a g e s.)

REPRINTS
ADJUSTMENT FOR SEASONAL VARIATION. 6 /4 1 .
SEASO NAL FACTORS AFFECTING BANK R ESERVES.
2 /5 8 .
LIQUIDITY AND PUBLIC POLICY, S ta ff P a p e r by S te ­
phen H . A x ilro d . 1 0 /6 1 .
SEASONALLY ADJU STED SER IES FOR BANK CREDIT.
7 /6 2 .
INTEREST RATES AND MONETARY POLICY, S ta ff
P a p e r by Steph en H . A xilrod . 9 /6 2 .
M EASURES OF MEMBER BANK R ESE R V ES.

7 /6 3 .

REVISION OF BANK DEBITS AND DEPO SIT TURN­
OVER SER IES. 3 /6 5 .
RESEARCH ON BANKING STRUCTURE AND PER ­
FORMANCE, S ta ff E c o n o m ic S tu d y by T ynan
Sm ith. 4 /6 6 .
A REVISED INDEX OF MANUFACTURING CAPACITY,
S ta ff E c o n o m ic S tu d y b y Frank d e L eeu w w ith
Frank E . H op k in s and M ich ael D . Sherm an. 1 1 /6 6 .
REVISED SER IES ON COMMERCIAL AND INDUS­
TRIAL LOANS BY INDUSTRY. 2 /6 7 .
INTEREST C O ST EFFECTS OF COMMERCIAL BANK
U N D E R W R IT IN G O F M UNICIPAL R E V E N U E
BO ND S. 8 /6 7 .
U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN
1960-67. 4 /6 8 .
FEDERAL FISCAL POLICY IN THE 1960’s. 9 /6 8 .




HOUSING PRODUCTION AND FINANCE. 3 /6 9 .
REVISION OF WEEKLY SER IES FOR COMMERCIAL
BANKS. 8 /6 9 .
EURO-DOLLARS: A CHANGING MARKET. 1 0 /6 9 .
RECENT CHANGES IN STRUCTURE OF COMMER­
CIAL BANKING. 3 /7 0 .
SD R ’s IN FEDERAL RESERVE OPERATIONS AND
STATISTICS. 5 /7 0 .
M EASURES OF SECURITY CREDIT. 1 2 /7 0 .
MONETARY AGGREGATES AND MONEY MARKET
CONDITIONS IN OPEN MARKET POLICY. 2 /7 1 .
BANK FINANCING OF MOBILE HOMES. 3 /7 1 .
INTEREST RATES, CREDIT FLOWS, AND MONETARY
AGGREGATES SINCE 1964. 6 /7 1 .
TWO KEY ISSU E S OF MONETARY POLICY. 6 /7 1 .
SURVEY OF DEMAND DEPOSIT OW NERSHIP. 6 /7 1 .
BANK RATES ON B U SIN E SS LOANS— REVISED
SER IES. 6 /7 1 .
INDUSTRIAL PRODUCTION— REVISED AND NEW
M EASURES. 7 /7 1 .
REVISED M EASURES OF MANUFACTURING CAPAC­
ITY UTILIZATION. 1 0 /7 1 .
REVISION OF BANK CREDIT SER IES. 1 2 /7 1 .
PLANNED AND ACTUAL LONG-TERM BORROWING
BY STATE & LOCAL GOVERNM ENTS. 1 2 /7 1 .
A S S E T S AND LIABILITIES OF FOREIGN BRANCHES
OF U.S. BANKS. 2 /7 2 .
WAYS TO MODERATE FLUCTUATIONS IN THE C O N­
STRUCTION OF HOUSING. 3 /7 2 .
CONSTRUCTION LOANS AT COMMERCIAL BANKS.
6 /7 2 .
SOME ESSENTIALS OF INTERNATIONAL MONETARY
REFORM. 6 /7 2 .
BANK DEBITS, DEPO SITS, AND DEPO SIT TURN­
OVER— REVISED SERIES. 7 /7 2 .
RECENT REGULATORY CHANGES IN RESERVE RE­
QUIREMENTS AND CHECK COLLECTION. 7 /7 2 .
YIELDS ON NEWLY ISSUED CORPORATE BO NDS.
9 /7 2 .
RECENT ACTIVITIES OF FOREIGN BRANCHES OF
U.S. BANKS. 1 0 /7 2 .
REVISION OF CONSUM ER CREDIT STATISTICS.
1 0 /7 2 .
SURVEY OF FINANCE COM PANIES, 1 9 7 0 . 1 1 /7 2 .
ONE-BANK HOLDING COMPANIES BEFORE THE 1970
AMENDMENTS. 1 2 /7 2 .
EVOLUTION OF THE PAYMENTS MECHANISM. 1 2 /7 2 .
REVISION OF THE MONEY STOCK M EASU RES AND
MEMBER BANK RESE R V ES AND DEPO SIT S. 2 /7 3 .
STATE AND LOCAL BORROWING ANTICIPATIONS
AND REALIZATIONS. 4 /7 3 .
YIELDS ON RECENTLY OFFERED CORPORATE
BO NDS. 5 /7 3 .
FEDERAL FISCAL POLICY, 1965-72. 6 /7 3 .
SOME PROBLEMS OF CENTRAL BANKING. 6 /7 3 .
BANKING AND MONETARY STATISTICS, 1972. S e ­
lected series o f ban k in g and m onetary statistics for
1972 o n ly . 3 /7 3 and 7 /7 3 .

FEDERAL RESERVE BULLETIN □ JUNE 1974

A 106

CAPACITY UTILIZATION IN MAJOR MATERIALS IN­
DUSTRIES. 8 /7 3 .
CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­
MERCIAL BANKS. 9 /7 3 .
RATES ON CONSUM ER INSTALMENT LOANS. 9 /7 3 .
BALANCE OF PAYMENTS ADJUSTM ENT SINCE 1971.
1 0 /7 3 .
NEW SER IES FOR LARGE MANUFACTURING C O R­
PORATIONS. 1 0 /7 3 .
MONEY SUPPLY IN THE CONDUCT OF MONETARY
POLICY. 1 1 /7 3 .
U.S. ENERGY SUPPLIES AND U S E S , S ta ff E c o n o m ic
S tu d y b y C layton G eh m an. 1 2 /7 3 .
REVISION OF THE MONEY STOCK M EASURES AND
MEMBER BANK DEPO SITS. 2 /7 4 .
TREASURY AND FEDERAL RESERVE FOREIGN EX­
CHANGE OPERATIONS. 3 /7 4 .

RECENT DEVELOPMENTS IN THE U.S. BALANCE OF
PAYMENTS. 4 /7 4 .
CHANGES IN TIME AND SAVING S DEPO SITS AT
COMMERCIAL BANKS, JULY-O CTOBER 1973.
4 /7 4 .
CHANGES IN BANK LENDING PRACTICES, 1 9 7 3 .4 /7 4 .
CAPACITY UTILIZATION FOR MAJOR MATERIALS:
REVISED M EASURES. 4 /7 4 .
FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER
OF 1974. 5 /7 4 .
O PEN MARKET OPERATIONS IN 1973. 5 /7 4 .
NUMERICAL SPECIFICATIONS OF FINANCIAL VARI­
ABLES AND THEIR ROLE IN MONETARY POLICY.
5 /7 4 .
TREASURY AND FEDERAL RESERVE FOREIGN EX­
CHANGE OPERATIONS, INTERIM REPORT. 6 /7 4 .

ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1—
BOARD OF GOVER NORS OF THE FEDERAL RESERVE SYSTEM
W eek ly releases

A p p roxim ate
release day

D ate or period to
w h ich d ata refer

Aggregate Reserves and Member Bank Deposits (H.3)

Tuesday

Week ended previous
Wednesday

Applications and Reports Received, or Acted on, by the Board
(H.2)

Friday

Week ended previous
Saturday

Assets and Liabilities of All
States (H.8)

Wednesday

Wednesday, 2 weeks
earlier

Changes in State Member Banks (K.3)

Tuesday

Week ended previous
Saturday

Commercial and Industrial Loans Outstanding by Industry (H.12)2

Wednesday

Wednesday, 1 week
earlier

Condition Report of Large Commercial Banks in New York and
Chicago (H.4.3)

Thursday

Previous Wednesday

Condition Report of Large Commercial Banks and Domestic Subsid­
iaries (H.4.2)3

Wednesday

Wednesday, 1 week
earlier

Deposits, Reserves, and Borrowings of Member Banks (H.7)

Wednesday

Week ended 3 Wednes­
days earlier

Factors Affecting Bank Reserves and Condition Statement of Federal
Reserve Banks (H.4.1)

Thursday

Week ended previous
Wednesday

Foreign Exchange Rates (H.10)

Monday

Week ended previous
Friday

Money Stock Measures (H.6)

Thursday

Week ended Wednesday
of previous week

Reserve Positions of Major Reserve City Banks (H.5)

Friday

Week ended Wednesday
of previous week

Selected Interest and Exchange Rates for Major Countries and the
United States (H.13)

Thursday

Week ended previous
Saturday

U.S. Government Security Yields and Prices (H.15)

Monday

Week ended previous
Saturday

Weekly Summary of Banking and Credit Measures (H.9)

Thursday

Week ended previous
Wednesday; and
week ended Wednes­
day of previous week

Commercial Banks in the United

Semimonthly and bimonthly releases
Finance Rates and Other Terms on Selected Categories of Consumer
Instalment Credit Extended by Finance Companies (J.3)
Research Library—Recent Acquisitions (J.2)
__________________________

20th of month

2nd month previous

1st and 16th
of month

Period since last release

R elease dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability
because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date

being later than anticipated.
2Contains monthly H.12b release on second Wednesday of month.
http://fraser.stlouisfed.org/
3Contains
revised H.4.3 data.
Federal Reserve Bank of
St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS

A 107
Approximate
release day

Date or period to
which data refer

Assets and Liabilities of All Member Banks by Districts (G.7.1).

14th of month

Last Wednesday of
previous month

Automobile Loans by Major Finance Companies (G.25)

7th working day
of month

2nd month previous

Automobile Instalment Credit Developments (G.26)

6th working day
of month

2nd month previous

Bank Debits, Deposits, and Deposit Turnover (G.6)

25th of month

Previous month

Changes in Status of Banks and Branches (G.4.5)

25th of month

Previous month

Commercial and Industrial Term Loans Outstanding by Industry
(H.12b) Available only as attachment to weekly H.12 release

2nd Wednesday
of month

Last Wednesday of
previous month

Consumer Credit (G.19)

3rd working
day of month

2nd month previous

Consumer Instalment Credit at Commercial Banks (G.18)

4th working day
of month

2nd month previous

Finance Companies (G.20)

5th working day
of month

2nd month previous

Finance Rate and Other Terms on New and Used Car Instalment
Credit Contracts Purchased from Dealers by Major Auto Fi­
nance Companies (G. 11)

30th of month

Previous month

Foreign Exchange Rates (G.5)

1st of month

Previous month

Index Numbers of Wholesale Prices (G.8)

20th of month

Previous month

Industrial Production (G.12.3)
(Similar data also available annually, see p. A - 108

15th of month

Previous month

Monthly releases

Interdistrict Settlement Fund (G.15)

15th of month

Previous month

Interest Rates Charged on Selected Types of Bank Loans (G.10)

15th of month

2nd month previous

Maturity Distribution of Outstanding Negotiable Time Certificates
of Deposit (G.9)

24th of month

Last Wednesday of
previous month

Open Market Money Rates and Bond Prices (G.13)

6th of month

Previous month

State Member Banks of Federal Reserve System and Nonmember
Banks that Maintain Clearing Accounts with Federal Reserve
Banks (G.4)

1st week of
month

Previous month

1st week of
February

End of previous yeai

Summary of Equity Security Transactions (G.16)

Last week of
month

Release date

U.S. Government Security Yields and Prices (G.14)

4th of month

Previous month

Bank Rates on Short Term Business Loans (E.2)

18th of March,
June, September,
December

1st 15 days of Febru
May, August, No­
vember

Capacity Utilization in Manufacturing (E.5)

21st of January,
April, July,
October

Previous quarter

15th of February,
May, August,
and November

Previous quarter

10th of April,
June, September,
December

2nd quarter previous

(Also annual)

Quarterly releases

Flow of Funds:
Seasonally adjusted and unadjusted (Z .l)
Seasonally adjusted only (Z.la)

\
j
1

Volume and Composition of Individuals’ Saving J
(Flow of funds series) (E.8)
/
Sales, Revenue, Profits, and Dividends of Large Manufacturing Corporations (E.6)




FEDERAL RESERVE BULLETIN □ JUNE 1974

A 108

Semiannual releases

Approximate
release day

Date or period to
which data refer

Assets and Liabilities of All Commercial Banks, by Class of Bank
(E.3.4)

May and No­
vember

End of previous De­
cember and June

List of OTC Margin Stocks (E.7)

June 30, De­
cember 31
May and No­
vember

End of previous De­
cember and June

Bank Debits to Demand Deposit Accounts Except Interbank and U.S.
Government Accounts (C.5)

March 25

Previous year

End of Month Demand Deposits Except Interbank and U.S. Govern­
ment Accounts (C.5a)

March 25

Previous year

Federal Reserve Par List (G.3)

Early November

Previous September 30

5th of month

Period since last release

Industrial Production and Related Data
(Available upon request, after being announced)

November

Previous year

Member Bank Income (C.4)

End of May

Previous year

Assets, Liabilities, and Capital Accounts of Commercial and Mutual
Savings Banks—Reports of Call (Joint Release of the Federal
Deposit Insurance Corp., the Board of Governors of the Federal
Reserve System, and Office of the Comptroller of the Currency.
Published and distributed by FDIC.)

Release date

Annual releases

(Also monthly supplements)




A 109

INDEX TO STATISTICALTABLES
Acceptances, bankers’, 11, 27, 29
Agricultural loans of commercial banks, 18, 20
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 18, 19, 20, 32
Federal Reserve Banks, 12
Nonfinancial corporations, current, 43
Automobiles:
Consumer instalment credit, 47, 48, 49
Production index, 50, 51
Bank credit proxy, 15
Bank holding companies, banking offices and deposits of group
banks, Dec. 31, 1973, 80-83
Bankers’ balances, 19, 22
(See also Foreigners, claims on, and liabilities to)
Banks for cooperatives, 40
Bonds (See also U.S. Govt, securities):
New issues, 40, 41, 42
Yields and prices, 30, 31
Branch banks:
Assets, foreign branches of U.S. banks, 72
Liabilities, U.S. banks to foreign branches and foreign
branches of U.S. banks, 24, 73
Brokerage balances, 71
Business expenditures on new plant and equipment, 43
Business indexes, 52
Business loans (See Commercial and industrial loans)
Capacity utilization, 52
Capital accounts:
Banks, by classes, 16, 19, 24
Federal Reserve Banks, 12
Central banks, 77, 79
Certificates of deposit, 24
Commercial and industrial loans:
Commercial banks, 15, 18, 27
Weekly reporting banks, 20, 25
Commercial banks:
Assets and liabilities, 15, 16, 18, 19, 20
Consumer loans held, by type, 47
Deposits at, for payment of personal loans, 26
Loans sold outright, 27
Number, by classes, 16
Real estate mortgages held, by type of holder and prop­
erty, 44-46
Commercial paper, 27, 29
Condition statements (See Assets and liabilities)
Construction, 52, 53
Consumer credit:
Instalment credit, 47, 48, 49
Noninstalment credit, by holder, 47
Consumer price indexes, 52, 55
Consumption expenditures, 56, 57
Corporations:
Profits, taxes, and dividends, 43
Security issues, 41, 42
Security yields and prices, 30, 31
Cost of living (See Consumer price indexes)
Currency and coin, 5, 9, 19
Currency in circulation, 5, 14
Customer credit, stock market, 31, 32
Debits to deposit accounts, 13
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 19, 23




Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 26
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 26
Banks, by classes, 16, 19, 23, 32
Federal Reserve Banks, 12, 74
Postal savings, 19
Subject to reserve requirements, 15
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 43
Employment, 52, 54
Farm mortgage loans, 44
Federal agency obligations, 11, 12, 13
Federal finance:
Receipts and outlays, 34, 35
Treasury operating balance, 34
Federal funds, 7, 18, 20, 24, 29
Federal home loan banks, 39, 40
Federal Home Loan Mortgage Corporation, 39, 44, 45
Federal Housing Administration, 44, 45, 46
Federal intermediate credit banks, 39, 40
Federal land banks, 39, 40, 44
Federal National Mortgage Assn., 39, 40, 44, 45, 46
Federal Reserve Banks:
Condition statement, 12
U.S. Govt, securities held, 4, 12, 13, 36, 37
Federal Reserve credit, 4, 6, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 39, 40
Finance companies:
Loans, 20, 48, 49
Paper, 27, 29
Financial institutions, loans to, 18, 20
Float, 4
Flow of funds, 58, 59
Foreign:
Currency operations, 11, 12
Deposits in U.S. banks, 5, 12, 19, 23, 74
Exchange rates, 78
Trade, 61
Foreigners:
Claims on, 68, 69, 70, 74, 75, 76
Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76
Gold:
Certificates, 12
Earmarked, 74
Net purchases by United States, 62
Reserves of central banks and govts., 79
Stock, 4, 61
Government National Mortgage Assn., 44
Gross national product, 56, 57
Housing permits, 52
Housing starts, 53
Income, national and personal, 56, 57
Income and expenses:
Insured commercial banks, 84
Member banks, 84-99

(References are to pages A-4 through A-99 although the prefix “ A” is omitted in this index)

(For list of tables published periodically, but not monthly, see page A-3)

(References are to pages A-4 through A-99 although the prefix “ A” Is omitted in this index)

A 110

Industrial production index, 50, 51, 52
Instalment loans, 47, 48, 49
Insurance companies, 33, 36, 37, 44, 46
Insured commercial banks, 16, 18, 26, 84
Interbank deposits, 16, 19
Interest rates:
Bond and stock yields, 30
Business loans by banks, 28
Federal Reserve Banks, 8
Foreign countries, 77
Money market rates, 29
Mortgage yields, 45, 46
Prime rate, commercial banks, 28
Time and savings deposits, maximum rates, 10
International capital transactions of U .S., 63-76
International institutions, 62, 77, 79
Inventories, 56
Investment companies, issues and assets, 42
Investments (See also specific types of investments):
Banks, by classes, 16, 18, 21, 22, 32
Commercial banks, 15
Federal Reserve Banks, 12, 13
Life insurance companies, 33
Savings and loan assns., 33
Labor force, 54
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 16, 18, 20, 32
Commercial banks, 15, 16, 18, 20, 25, 27, 28
Federal Reserve Banks, 4, 6, 8, 12, 13
Insurance companies, 33, 46
Insured or guaranteed by U .S., 44, 45, 46
Savings and loan assns., 33
Manufacturers:
Capacity utilization, 52
Production index, 51, 52
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 16, 18
Borrowings at Federal Reserve Banks, 6, 12
Income and expenses, 84-99
Number, by classes, 16
Reserve position, basic, 7
Reserve requirements, 9
Reserves and related items, 4, 6, 15
Mining, production index, 51
Mobile home shipments, 53
Money market rates (See Interest rates)
Money stock and related data, 14
Mortgages (See Real estate loans and Residential mortgage
loans)
Mutual funds (See Investment companies)
Mutual savings banks, 23, 32, 36, 3 7 ,4 4 ,4 6
National banks, 16, 26
National defense expenditures, 35
National income, 56, 57
Nonmember banks, 17, 18, 19, 26, 84
Open market transactions, 11
Payrolls, manufacturing index, 52
Personal income, 57
Postal savings, 19
Prices:
Consumer and wholesale commodity, 52, 55
Security, 31
Prime rate, commercial banks, 28
Production, 50, 51, 52
Profits, corporate, 43




FEDERAL RESERVE BULLETIN □ JUNE 1974

Real estate loans:
Banks by classes, 18, 21, 32, 44
Mortgage yields, 45, 46
Type of holder and property mortgaged, 44-46
Reserve position, basic, member banks, 7
Reserve requirements, member banks, 9
Reserves:
Central banks and govts., 79
Commercial banks, 19, 22, 24
Federal Reserve Banks, 12
Member banks, 5, 6, 15, 19
U.S. reserve assets, 61
Residential mortgage loans, 45, 46
Retail credit, 47, 48, 49
Retail sales, 52
Saving:
Flow of funds series, 58, 59
National income series, 56, 57
Savings and loan assns., 33, 37, 44, 46
Savings deposits (See Time deposits)
Savings institutions, principal assets, 32, 33
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 39, 40
International transactions, 70, 71
New issues, 40, 41, 42
Yields and prices, 30, 31
Silver coin, 15
Special Drawing Rights, 4, 12, 60, 61
State and local govts.:
Deposits, 19, 23
Holdings of U.S. Govt, securities, 36, 37
New security issues, 40, 41
Ownership of securities of, 18, 22, 32
Yields and prices of securities, 30, 31
State member banks, 17, 26
Stock market credit, 31, 32
Stocks (See also Securities):
New issues, 41, 42
Yields and prices, 30, 31
Tax receipts, Federal, 35
Time deposits, 10, 15, 16, 19, 23
Treasury cash, Treasury currency, 4, 5
Treasury deposits, 5, 12, 34
Treasury operating balance, 34
Unemployment, 54
U.S. balance of payments, 60
U.S. Govt, balances:
Commercial bank holdings, 19, 23
Member bank holdings, 15
Treasury deposits at Reserve Banks, 5, 12, 34
U.S. Govt, securities:
Bank holdings, 16, 18, 21, 32, 36, 37
Dealer transactions, positions, and financing, 38
Federal Reserve Bank holdings, 4, 12, 13, 36, 37
Foreign and international holdings, 12, 68, 70, 74
International transactions, 68, 70
New issues, gross proceeds, 41
Open market transactions, 11
Outstanding, by type of security, 36, 37
Ownership, 36, 37
Yields and prices, 30, 31
Utilities, production index, 51
Veterans Administration, 44, 45, 46
Weekly reporting banks, 20
Yields (See Interest rates)

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