Full text of Federal Reserve Bulletin : June 1976

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JU N E 1976

FEDERAL RESERVE

BULLETIN
Changes in the Liquidity of Major Sectors of the U.S. Economy
Industrial Production— 1976 Revision
Federal Reserve Operations in Payments Mechanisms
Foreign Exchange Operations: Interim Report
The Independence of the Federal Reserve System




m

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FEDERAL RESERVE BULLETIN
N U M B ER 6 □

V O L U M E 62 □

J U N E 1976

CONTENTS
463 Recent Changes in the Liquidity of
Major Sectors of the U.S. Economy
470 Industrial Production— 1976 Revision

Al

Financial and Business Statistics

A l Contents
A2 U.S. Statistics
A58 International Statistics

481 Federal Reserve Operations in Payment
Mechanisms: A Summary

A76 Board of Governors and Staff

490 Interim Treasury-Federal Reserve
Foreign Exchange Operations

A78 Open Market Committee and Staff;
Federal Advisory Council

493 The Independence of the
Federal Reserve System

A79 Federal Reserve Banks and Branches
A80 Federal Reserve Board Publications

497 Membership of the Board of Governors
of the Federal Reserve System

A85 Index to Statistical Tables

499 Statements to Congress

A87 Map of Federal Reserve System

513 Record of Policy Actions
of the Federal Open Market Committee

Inside Back Cover:
Guide to Tabular Presentation and
Statistical Releases

521 Law Department
550 Announcements
556 Industrial Production

P U B L IC A T IO N S C O M M IT T E E
Lyle E. Gramley
Ralph C. Bryant

Joseph R. Coyne
Frederic Solomon

John M. Denkler
John D. Hawke, Jr.

James L. Kichline, Staff Director

The Federal Reserve B ulletin is issued monthly under the direction of the staff publications committee. This
committee is responsible for opinions expressed except in official statements and signed articles. Direction for
the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed
by Elizabeth B. Sette.



Recent Changes in the Liquidity
of Major Sectors of the U.S. Economy
This article was p repared in the Government
Finance Section o f the D ivision o f Research and
Statistics.

The financial condition of most sectors of the
U.S. economy has improved markedly over the
past 2 years, following an erosion of financial
strength during the preceding decade. The
nearly uninterrupted expansion of economic ac­
tivity during the 1960’s and early 1970’s, and
the inflation that accompanied it, caused
changes in the attitudes and behavior of many
economic units, thereby leading them to adopt
financial positions that greatly increased their
vulnerability to economic adversity. The recent
recession revealed this heightened exposure to
risk and prompted widespread efforts to reduce
indebtedness (especially short-term indebt­
edness), to increase holdings of liquid assets,
to rebuild equity cushions, and thus generally
to restructure financial positions. These efforts
have been reflected in a number of important
indicators of financial activity, such as repay­
ments of consumer and business loans and flo­
tations of new bond and stock issues.
The process of strengthening financial posi­
tions has interacted in several ways with the
recent course of economic activity. During the
course of the recession, business firms and
households reduced their expenditures relative
to income in order to channel resources into the
restoration of financial soundness. More re­
cently, during the recovery, rising incomes,
profits, and stock prices have abetted the finan­
cial restructuring process. Also, declines in loan
demand, together with large deposit inflows,
have provided financial intermediaries with an
opportunity to improve their balance sheets. The
progress made toward sounder financial posi­
tions could have an important bearing on the
durability of the current recovery.




Governmental policies contributed to the
success,of financial rebuilding efforts. Various
fiscal measures, including tax cuts and expanded
income transfer programs, increased disposable
personal income and after-tax corporate profits.
These policy initiatives combined with the
slowdown in economic activity created a record
Federal budget deficit in 1975 that was financed
largely through issuance of Treasury bills and
shorter-term coupon securities. The ability of
the Government to sell such a large quantity
of debt with little upward movement of interest
rates can be attributed not only to declines in
private demands for money and credit but also
to the desire of private investors to hold Federal
securities to improve the safety and liquidity of
their asset portfolios. By concentrating the bulk
of its offerings in the shorter end of the maturity
spectrum, the Treasury also minimized its direct
competition with businesses seeking to fund
their short-term debt through the sale of longerterm issues.
At the same time, the Federal Reserve sought
to foster an expansion of liquidity consistent
with both a vigorous recovery and a gradual
unwinding of inflationary pressures. In this en­
vironment, interest rates— particularly those on
short-term instruments— declined sharply in late
1974 and early 1975 and changed little, on
balance, during the first year of recovery. The
lower level of interest rates on market instru­
ments encouraged rapid growth in consumer
time and savings deposits at banks and nonbank
thrift institutions. These deposits, an important
component of household liquid assets, grew at
an annual rate of nearly 15 per cent from the
end of 1974 through the first quarter of 1976.
In contrast, the narrowly defined money stock
(Mx)— currency plus demand deposits— ex­
panded only moderately in 1975 and early 1976,
suggesting that there were increased efforts by

464

Federal Reserve Bulletin □ June 1976

the public to economize on non-interest-bearing
assets. More recently, demands for money have
shown signs of strengthening, and growth in Mx
has picked up. Also, interest rates have begun
to edge up, as the Federal Reserve, in light of
the strengthening money demands, has become
less accommodative in providing reserves to the
banking system and as private demands for
credit have increased.
Although sharing this common backdrop, the
financial restructuring has varied widely in dif­
ferent sectors of the economy. This article re­
views recent changes in the financial positions
of several important sectors, relating recent pat­
terns to financial developments since the mid1960’s.

HOUSEHOLDS
Financial positions began to improve for house­
holds somewhat earlier than for other sectors.
The leveling-oft of demand for consumer dura­
ble goods in late 1973 resulted in a slowing of
credit growth and contributed to a downturn in
the ratio of total household debt to personal
income in 1974. This ratio had also fallen in
the late 1960’s, when the rapid growth in con­
sumer indebtedness was more than matched by
an expansion of personal income. Growth in
both home mortgage and consumer loans accel­
erated between 1970 and 1973, however, fos­
tered by the rise in economic activity, by ac­
commodative credit conditions early in the pe­
riod, and by demographic factors favoring an
increase in new household formation. The
unusual surge in indebtedness may have also
been stimulated by rising stock prices, which
greatly increased the financial assets of house­
holds, and by a desire to acquire real assets prior
to the removal of price controls— although there
is little direct evidence on this last point.
Financial pressures on households became
apparent in late 1973. The rapid rise in borrow­
ing over the preceding few years had increased
the proportion of household income required to
service debt. In 1973 price increases— particu­
larly for food— cut into the amount of income
available to meet such obligations, and declines




Households
Percent

, ; 1 / >. Dollars

Per capita deflated net worth

i «■ ■ ■ ■ i

i

1964_________1968_________ 1972_________1976

■

Data for all charts are seasonally adjusted, w ith flow s at
annual rates. U n less otherw ise noted, all data are from the
flow o f funds accounts.
H ousehold figures include personal trusts and nonprofit or­
ganizations. Per capita deflated net worth is financial assets
m inus financial liabilities divided by population and the con ­
sumer price index.
Population, Bureau o f C ensus; consum er price index
(1967 = 100), Bureau o f Labor Statistics.

in stock prices eroded net financial wealth. One
indication of the problem was a sharp rise in
the delinquency rate on consumer instalment
loans beginning in the second half of 1973.
Under these conditions, households drew
back from their extended financial positions.
The retrenchment was due not only to desires
to restructure finances, but also to substantial
reductions in auto purchases reflecting uncer­
tainties about the price and availability of gaso­
line. Households assumed new debt at a much
more modest pace and accelerated their repay­
ments of existing debt. Extensions of new in­
stalment debt, for example, increased only
slightly in 1974 and remained unchanged
through most of 1975, whereas repayments in­
creased in both years. A rise in instalment debt
extensions near the end of 1975 and continuing
into 1976 appears to signal a change in con­
sumer attitudes. Despite this increase, the ratio
of total debt to personal income fell further
through the first quarter of 1976 to reach a level
4 per cent below its peak in 1973.
Household efforts to restore real net worth
positions over the past few years have also been
evidenced by high rates of savings. However,
real per capita financial net worth decreased
through the middle of 1974 mainly because of
falling stock prices. At that time, this measure
of economic well-being had reached its lowest

Liquidity of Major Sectors of the U.S. Economy

point since 1958. The rise in stock prices and
a rapid accumulation of time and savings de­
posits and Government securities since late 1974
have restored a portion of the decline in the real
per capita net worth of households, which nev­
ertheless remains well below its previous peak.

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

Nonfinancial corporations have been restructur­
ing their balance sheets since late 1974. The
major elements of this process have been the
funding of short-term debt, an accumulation of
liquid assets, and a sharp reduction in reliance
on external sources of funds to finance invest­
ment expenditures. These measures were made
necessary by the severe deterioration that had
occurred in financial positions in preceding
years.
The deterioration of balance sheets was
rooted in the growing discrepancy after the
mid-1960’s between the amount of corporate
investment and the volume of funds generated
internally through retained earnings and depre­
ciation allowances. When corporations are
forced to rely on external financing, they typi­
cally find that the tax deductibility of interest
payments provides an incentive to favor debt
over equity issues. Corporations may also have
been reluctant to issue new shares because they
wished to promote growth in earnings per share
through increases in their debt to equity ratios.
As a result, the cushion against adverse devel­
opments provided by profits was reduced as the
share of income originating in the corporate
sector required for net interest payments dou­
bled between 1964 and 1974, and the ratio of
after-tax profits to income originating fell 20 per
cent. Moreover, an increasing reliance on
short-term borrowing and a declining ratio of
liquid assets to short-term debt during much of
the same period made firms’ profitability, and
even their solvency, more vulnerable to shifting
economic and financial conditions.
Lenders might have discouraged these trends
by demanding commensurate risk premiums.
However, steady economic growth in the 1960’s




465

and the mildness of the 1970 recession led credit
market participants to the view that the possi­
bility of major financial problems was remote.
That assessment was proved wrong when the
general credit squeeze that developed in 1974
and the subsequent steep declines in output and
income late that year and early in 1975 exposed
the weakened financial positions of many non­
financial corporations. As the public became
aware of corporate financial problems, risk pre­
miums on the securities of lower-rated corpora­
tions rose sharply.

Nonfinancial corporations
r cent
60.0

Per cent
6.00

mm

Net interest paid/
incomeoriginating
Liquidassets/
short-termliabilities

51.7
43.3
35.0
26.7
18.3
42.50

Total investment/internal funds

38.55
34.58
30.63

Short-termdebt/total debt

26.68
22.70

Liquid assets are currency, dem and and tim e deposits, U .S .
Governm ent and State and local governm ent securities, com ­
mercial paper, and security repurchase agreem ents. Short-term
debt includes short-term credit market instrum ents and 6 0 per
cent o f bank loans. Short-term liabilities are short-term debt
plus tax liabilities and trade debt. N et interest paid is interest
paid less interest received. Incom e originating is dom estic
national incom e originating in nonfinancial corporations. Inter­
nal funds are undistributed profits, capital consum ption allow ­
ance, and inventory valuation adjustment. Total investm ent
includes fixed investm ent and changes in inventories.
Incom e originating and net interest paid are from D ept, of
C om m erce G N P accounts.

466

Federal Reserve Bulletin □ June 1976

Nonfinancial corporations reacted to the in­
creased threat of insolvency and the rising cost
of maintaining risky financial positions by de­
voting a large part of their financial flows in
1975 and early 1976 to the restoration of safer
balance-sheet relationships. A better balance
between financing needs and internally gen­
erated funds was achieved by inventory reduc­
tions and sluggish capital spending on the one
hand and by rising profits combined with stable
levels of dividends on the other. External fi­
nancing activity was shifted away from short­
term credit markets toward the bond and equity
markets where a total of $37 billion was raised
in 1975—a 50 per cent increase over the pre­
vious year. The proceeds from these offerings
and the increased volume of internally generated
cash were used to retire short-term debt and to
purchase liquid assets. In 1975 nonfinancial
corporations paid down $13 billion of bank
loans—a major portion of which were of short
maturity—and $2 billion of commercial paper,
thereby reducing the ratio of short-term debt to
total debt by 11 per cent. Reflecting also the
sizable liquid asset acquisitions—especially
U.S. Government securities—the ratio of liquid
assets to short-term liabilities rose sharply in
1975. The reduction in financial pressures on
corporations is seen in a decline in the propor­
tion of income originating in corporations de­
voted to net interest payments.
As the economy has continued to expand
through the early part of 1976, the pace of
financial restructuring by nonfinancial corpora­
tions has slackened. Renewed inventory accu­
mulation in the first quarter, coupled with a
modest rise in spending for plant and equip­
ment, has raised financing requirements by more
than the increase in internally generated funds
during that quarter. Although a large amount
of bank loans were again repaid, short-term
business borrowing from other sources rose
sufficiently to produce a stable level of over-all
short-term indebtedness.
Whereas nonfinancial corporations have made
marked progress in restructuring their financial
positions, by many conventional measures they
remain less liquid and more exposed to financial




risk than they were in the 1960’s and even the
early 1970’s. Furthermore, the degree of their
financial vulnerability may be understated be­
cause of increases in contractually fixed pay­
ments that must be made out of income such
as for equipment leases and unfunded pension
liabilities. On the other hand, some corporations
may not feel a need to re-establish the more
conservative financial ratios that had prevailed
earlier because of significant changes that have
since evolved in the economic environment. For
example, the need to hold liquid assets may
have been reduced to some extent by the re­
moval in the early 1970’s of Regulation Q
ceilings on large-denomination bank certificates
of deposit (CD’s). This change may be viewed
by businesses as decreasing the risk of a restric­
tion in credit supplies brought about by an
abrupt diversion of savings flows away from the
banking system. Also, despite lower interest
rates and higher stock prices, the nominal cost
of raising capital remains quite high by histori­
cal standards, and tax laws continue to encour­
age use of debt financing.

STA TE
AND LOCAL GOVERNM ENTS

A number of State and local governments found
themselves in straitened financial circumstances
last year. Mounting deficits and the reluctance
of lenders to extend additional credit forced
cutbacks in spending plans and the development
of special financing arrangements. The aggre­
gate data in the accompanying chart, however,
do not indicate a marked financial deterioration
for the State and local sector as a whole over
the past decade. In fact, the debt burden of State
and local governments, as measured by the ratio
of debt to tax revenues, actually declined
through much of the 1960’s and the early
1970’s—although rising interest rates caused
some increase in the proportion of income de­
voted to debt service. The ratio of debt to tax
revenue changed little from mid-1973 to mid1975, and it subsequently resumed its down­
ward movement as a high, but stable, rate of

Liquidity of Major Sectors of the U.S. Economy

new debt issuance has been accompanied by a
climb in tax revenues.
A more serious problem for some State and
local governments in the late 1960’s was the
growing reliance on short-term debt. To some
extent the increase in such debt reflected expan­
sion of a program in which the Federal Govern­
ment guaranteed local short-term public housing
notes, but it also resulted from the reluctance
of State and local treasurers to issue long-term
debt as interest rates rose and from the efforts
by some units to accelerate inflows of cash
through the sale of bond, revenue, and tax
anticipation notes. In 1971, with the advent of
revenue sharing and a decline in interest rates,
the share of total municipal debt represented by
short-term issues began to fall. It continued to
decline through mid-1974 before picking up
again late in the year. When these short-term
debt figures are disaggregated, it becomes ap­
parent that much of the increase in such debt
in the late 1960’s and early 1970’s took place
in a few localities. State and local units in New
York, for example, accounted for 50 per cent
of the rise in short-term debt in the late 1960’s,
and by the early 1970’s they had issued nearly
40 per cent of all short-dated municipal debt
outstanding. If the obligations of New York
governmental units are excluded, the 1971 peak
in the ratio of short-term to total debt is reduced
by about one-third. The very sharp reduction
State and local governments
Percent




I

Percent

467

in municipal short-term debt in the third quarter
of 1975 and in the first quarter of 1976 largely
reflects the restructuring efforts of financially
troubled localities, including special arrange­
ments made by New York City.

C O M M E R C IA L B A N K IN G

Financial restructuring has not been confined to
the spending sectors. Commercial banks and
other financial intermediaries have also been
rearranging their liabilities and rebuilding their
asset liquidity following a prolonged period of
decreasing financial safety.
The development of a market for large nego­
tiable CD’s in the early 1960’s enabled many
commercial banks to control the size of their
liabilities and led to a trend away from largely
passive reliance on inflows of demand and con­
sumer time and savings deposits. This trend
accelerated greatly in the early 1970’s when
ceilings on the rates of interest banks could pay
on large time deposits were suspended. How­
ever, because of the short maturity and limited
Federal insurance protection of most liabilities
subject to direct commercial bank management,
banks that rely heavily on such liabilities, espe­
cially to finance longer-term assets, are poten­
tially vulnerable to credit conditions in which
short-term rates (at which they obtain these
funds) rise above longer-term rates (at which
they have made loans), and to loss of creditor
confidence. The latter threat became apparent
in 1974 after the difficulties of the Franklin
National Bank were perceived.
Bank risk exposure over this period was also
heightened by changes in the composition of
asset portfolios. Holdings of liquid assets were
reduced as banks became convinced that mar­
kets for managed liabilities lessened the need
to hold secondary reserves. In addition, in­
creased risk exposure in the spending sectors
caused a lowering of the quality of the bank
loan portfolio, although this was not fully rec­
ognized before the onset of the recession. Fi­
nally, the growth of bank equity positions
lagged the growth of asset portfolios, reducing

468

Federal Reserve Bulletin □ June 1976

Commercial banking
Per cent
35.0

Per cent

29.8
24.7
19.5
14.3
9.2
4.0
Com m ercial banking consists of chartered com m ercial
banks, their dom estic affiliates, Edge A ct corporations, agen­
c ies o f foreign banks, and banks in U .S . possessio n s. Dem and
and other tim e deposits are total deposits less large negotiable
C D ’s. Liquid assets are U .S . G overnm ent securities, vault
cash, and deposits at F .R . B anks.

the cushion available to absorb whatever losses
might arise.
The weakness in loan demand and the rapid
inflows of time and savings deposits associated
with the lower market interest rates since the
sharp contraction of 1974 facilitated commercial
banks in their restructuring efforts in 1975 and
early 1976. Savings and smaller time deposits
grew fast enough to permit banks to reduce their
CD’s outstanding by $20 billion between the
end of 1974 and March 1976, while increasing
the liquid assets in their portfolios. Loan volume
remained unchanged, on balance, over this time
span, but holdings of U.S. Government securi­
ties rose $40 billion. By March 1976 the ratio
of liquid assets to total assets had increased 23
per cent from its trough in 1974. During this
period banks tried to bolster profits by main­
taining a substantial spread between their loan
rates and the cost of funds, and even though
large losses were incurred on some loans and
other loans provided no current income, they
managed to expand their equity base. The ratio
of financial net worth to total assets rose in 1975
for the first time in several years.




NONBANK
T H R IF T IN S T IT U T IO N S

Savings and loan associations and mutual sav­
ings banks play a key role in providing credit
to the residential mortgage market. Conse­
quently, the financial health of these institutions
has an important impact on the housing sector.
Thrift institutions have repeatedly experienced
financial difficulties in periods of sharply rising
interest rates because their liabilities have
shorter maturities than their assets. In other
respects, the balance sheets of thrift institutions
as a group had not weakened severely in the
1960’s and early 1970’s. Although there had
been some increase in borrowings by savings
and loan associations from the Federal home
loan banks in the late 1960’s, the proportion
of assets acquired from inflows of savings and
of consumer time deposits changed very little.
In the late 1960’s liquid asset totals held steady
while total assets grew rapidly, but in early 1971
the thrift institutions began accumulating li­
quidity again, and the ratio of liquid to total
assets remained above its 1970 trough through
the 1973-74 period of high interest rates. The
equity cushion of thrift institutions, on the other
hand, as measured by the ratio of financial net
worth to total assets, declined steadily.

Thrift institutions
Per cent

Per cent
93.15
77.85
62.55

Liquid assets are currency, dem and and tim e deposits, c o m ­
mercial paper, and security repurchase agreem ents.

Liquidity of Major Sectors of the U.S. Economy

Inflows of savings and consumer time depos­
its into nonbank thrift institutions have been
quite heavy in 1975 and 1976. They have been
used to accumulate liquid assets and home
mortgages and to repay debt. The ratio of fi­
nancial net worth to total assets has continued
to fall, but the negative impact of this develop­
ment has been somewhat mitigated by the
build-up in liquid assets, which carry reduced




469

potential for capital loss. By the first quarter
of 1976 the proportion of total assets held in
liquid form had climbed 70 per cent from its
trough in 1970 and stood at its highest level
since the early 1960’s. Under these circum­
stances, the favorable balance-sheet positions of
the thrift institutions leave them in a good posi­
tion to meet new mortgage demands in a normal
financial climate.
□

470

Industrial Production—1976 Revision
This article was prepared by Clayton Gehman,
formerly Chief of the Business Conditions Sec­
tion, Division of Research and Statistics.

The first general revision of the industrial pro­
duction index in 5 years has just been com­
pleted—the fifth revision since the index was
first published 50 years ago. Revisions in the
total index have generally been upward, by
small amounts from 1963 to 1971 and by 3 to
5 per cent since then, except during the 1974-75
curtailment period (Chart 1). These higher
levels reflect in large part upward revisions in
output of business equipment, durable consumer
goods, and industrial materials used to produce
these and other products.1
According to the revised index as well as the
old, expansion in total industrial production
came to an end in the autumn of 1973. The
revised index shows that production fluctuated
within a narrow range for almost a year after
that, whereas the old index showed some eas­
ing. Both indexes dropped sharply from Sep­
tember 1974 to March 1975—with the revised
index down 15 per cent compared with 12 per
cent for the old. This period of contraction—6
months—was the shortest for any major reces­
sion on record. Recovery since March 1975 has
been faster than the old index indicated, and
by May 1976 the revised total was estimated
to be up to 129 per cent of the 1967 average
1A table at the end of this article shows monthly
figures for the total index and three major market groups
back to 1963. Recent figures for both the total index
and individual series will be released regularly in the
G .12.3 release, “ Industrial Production,” beginning in
mid-July. The July release will include estimates for
June and revised indexes from June 1975 to May 1976.
The G .12.3 release is available without charge on re­
quest from the Board’s Publications Services, Division
of Administrative Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.




as compared with its pre-recession high of 132.
Production of consumer goods in May was
about 5 per cent higher than in September 1974,
while business equipment and materials were
still below their earlier highs. Output of materi­
als was up about one-fifth from its 1975 low
point and at about 80 per cent of capacity.
Stocks of materials were reduced in 1975, and
recently they have shown little increase as use
of materials in output of products has expanded
about as fast as output of materials (Charts 2
and 3). Meanwhile, total inventories have been
rising, reflecting increases in stocks of final
products.
The main improvements in the industrial pro­
duction (IP) measures relate to more detailed
and comprehensive information for analyzing
output developments in oil and gas extraction
and refining, in electric and gas utility opera­
tions, and in industries that produce chemicals,
construction products, and motor vehicles. Ad­
ditional measures of energy production by stage
of processing have been developed to provide
new U.S. summary measures, which account
for about one-eighth of total IP.
These revisions in IP provide improved
and/or new monthly physical data for use in
measuring and analyzing industrial use of en­
ergy, labor, materials, and plant capacity2 and
changes in physical stocks of goods, labor pro­
ductivity, and unit labor costs. Data for these
related measures have been calculated to pro­
vide historical comparisons with IP and with
2 The new capacity measure for all materials in the
revised IP, shown in Chart 2 and described briefly in
an announcement on pp. 553-54 of this B ulletin , is
of strategic analytical importance because capacity uti­
lization margins for materials have typically been much
narrower than for industrial products and because output
and inventories of materials exhibit large cyclical
changes. A lso, these compilations are based on rela­
tively firm data.

Industrial Production— 1976 Revision

471

CHART 1
Industrial production index
100

Seasonally adjusted data; latest are M ay 1976 estim ates.
M ajor auto strike in late 1970.

each other for analysis of economic develop­
ments (Chart 2).
The generally higher levels shown by IP in
recent years suggest greater growth in industrial
plant capacity and in output per unit of energy
and of labor input than was implied by the
index published earlier. Also, the revised IP
continues to suggest, partly on the basis of
output differences between materials and prod­
ucts, that inventories had been accumulated at
an extraordinary rate over an extended period
before the end of 1974. More recently, the
IP-based data have indicated greater liquidation
and then an earlier turnaround than the deflated
book-value data.
A detailed discussion of this revision, analy­
ses of developments shown by the revised index
and related economic series, and complete sta­
tistical tables for the revised total index and its
components will be published in Industrial Pro­
duction— 1976 Edition.3
3 This volume is now scheduled to be available later
this year, as are revised figures in machine-readable
form. Readers are asked not to request these materials
until their availability is announced in the B u lle t in .
In addition to a reprint of the present article, Indus­
trial Production— 1976 E dition will present analytical
and descriptive material on the 1976 revision— includ­
ing details on classifications, relative weights, and
sources of underlying data; a review of economic de­
velopments as indicated by the revised index and its
major components— consumer goods, business equip­
ment, and industrial materials— and by related data; and
statistical tables showing data for the total index back
to 1919, and figures for the components of IP as far
back as they are available.




S U M M A R Y O F R E V IS IO N S

The number of individual series in IP has been
increased from 227 to 235, and about 30 addi­
tional subdivisions of the index have been de­
veloped for publication. All of the individual
component series of IP have been adjusted,
where necessary, to the Censuses of Manufac­
tures and Minerals benchmark data for changes
from 1963 to 1967 and to comprehensive annual
data from a variety of other sources through
1973. For the motor vehicle group, the adjust­
ments to new annual production levels have
raised the series by amounts that are substan­
tially higher now than in 1963. Separate series
beginning with 1967 are now shown for large
and small autos, consumer-type utility vehicles,
and business vehicles.
The earlier published components for the pe­
riod before 1963 have been linked in 1963 to
the revised series. The 1967 comparison base
(1967 = 100) has been retained for the new
index, and 1967 value-added weights continue
to be used for the compilations beginning in
1967. The revised gross-value series for IP
products are based on 1972 dollar weights in­
stead of the previously used 1963 dollars. Al­
lowances for seasonal fluctuations and for irreg­
ular monthly movements have been revised.4

4 Revisions of seasonal adjustment factors have been
based on data through 1974. That year rather than the
latest year, 1975, has been used as the terminal year
for these calculations in order to provide measures

472

Federal Reserve Bulletin □ June 1976

In the general revision of IP, the levels of
the broad divisions for materials and products
in the market grouping (Chart '3-A) and for
durable and nondurable manufacturing in the
industry grouping (Chart 3-B) are raised by
about the same relative amounts. Hence, the
relationships between those major divisions of
total IP are changed only a little.
As already indicated, most of the upward
revisions in the index are for business equipment
and durable consumer goods (Charts 3-C and
3-E) and for their component parts, which are
produced in the machinery, transportation
equipment, and furniture industries, and for
nondurable goods materials produced in the
textile and plastics products industries. These
upward revisions are partly offset in total IP by
decreases in the fabricated metal products, ord­
nance, and food industries. Reduced levels of
output for consumer paper products, as well as
for foods, contribute to some downward revi­
sions that were made for the market group for
nondurable consumer goods. The revised con­
struction products group (Chart 3-F) shows
more growth than did the previous series, be­
cause of the additional representation of rapidly
growing plastics and aluminum products and of
mobile homes (formerly classified in durable
consumer goods).
In the mining industries, there have been
upward revisions for stone and earth materials
and for oil and gas well drilling. In the utility
industry, new measures are introduced to repre­
sent natural gas transmission activity and elec­
tricity generation beginning in 1967. Both of
these series, however, show less growth than
the old utility series. The addition of natural
gas transmission has increased the scope of the
combined mining and utility industry divisions
to 12 per cent of total IP, and these two divisions
now include all major energy industries except
petroleum refining. Their combined movement
is close to that of the IP supplementary market
largely free of the temporary effects of the cyclical
downturn and recovery on seasonal patterns. As a result
of this choice of procedure, the revised seasonally
adjusted indexes show more cyclical change in the 12
months ending September 1975 than if 1975 had been
used as the terminal year.




CHART 2
Industrial production and
related physical measures
100
160
140

120
100

S easonally adjusted m onthly data except for new quarterly
capacity series for all materials in revised IP. Physical stocks
based on w eighted com bination o f series for materials other
than farm products. Energy input based on IP use o f coal,
electricity, natural gas, and refined petroleum ; series com bined
w ith value-of-purchase w eights. Labor input represents all-em ­
p loyee hours, including governm ent-ow ned plants. IP ratios
for energy, labor, and unit labor costs are 2-m onth averages
lagged. Major coal strike affected energy series in 1971. Latest
figures are based on M ay 1976 estim ates.

group for total energy, which has been pub­
lished separately since late 1973 (Chart 3-D).5
Revisions in IP for the period from 1963 to
1967 reflect only adjustments to the final Census
benchmark production indexes for those years,
and they are generally smaller than the revisions
for the more recent period. Total IP for 1967
5 Related to these energy production series are newly
published monthly data, beginning in 1963, on indus­
trial electric power use. About 130 group and individual
industry series are shown separately, including many
not used in the IP index; these data were described in
the B ulletin for January 1976, pp. 11-14.

Industrial Production— 1976 Revision

473

CH A R T 3
Industrial production revised
Ratio scale, 1967=100
140

Seasonally adjusted m onthly data; latest are M ay 1976 estim ates. Major auto and coal strikes affect series in 1970, 1971,
and 1974. Energy is a supplem entary market group, including various m anufacturing, m in ing, and utility series.

is raised relative to 1963 by only 0.4 per cent,
but changes in major industry and market groups
are generally much larger. One reason for the
small revision in the total is that some 1967
Census data then available had been introduced
in IP at the time of the 1971 general revision.
The revisions in the total index and its com­
ponents beginning with 1963 affect the pub­
lished major groups back to 1954 or 1947 and
the major market and industry divisions back
to 1939 or 1919 because all of these indexes,
on a 1967 base, continue to be linked in bench­
mark years.

GROW TH TRENDS

From 1963 to 1974 the revised total IP expanded
at an average annual rate of 4.6 per cent (Table
1). Despite the slowdown in 1966-67 and the
recessions in 1969-70 and late 1974, the indus­




trial portion of the economy has grown moder­
ately faster since 1963 than it did in the earlier
postwar period when growth was interrupted by
the recessions of 1948^9, 1953-54, and
1957-58 and the average rise amounted to 4.2
per cent.
The rate of growth for consumer goods has
been somewhat faster in the recent period than
earlier (4.3 versus 4.1 per cent); for business
equipment, the expansion has been considerably
faster (6.1 versus 4.0 per cent), with the most
rapid rises occurring from 1963 to 1966 and
from 1972 to 1974. For output of construction
products and of industrial materials, the larger
increases in recent years have reflected the ac­
celerated impact of private investment demands.
The major remaining portion of IP con­
sists of defense and space output, which ac­
counts for about one-eighth of total industrial
products and, allowing for defense use of in­
dustrial materials, for almost as much of total

474

Federal Reserve Bulletin □ June 1976

TABLE 1
E xpansion in Industrial Production
Annual percentage increase
Grouping

Propor­
tion
in
1967

1946
to
1963

1963
to
1974

1946
to
1974

T o ta l .............................

1 00

4 .2

4 .6

4 .7

Consum er goods ___
B usiness equipm ent
C onstruction products
M aterials .....................

28
13
6
39

4 .1
4 .0
3 .7
4 .3

4 .3
6 .1
4 .6
4 .7

4 .5
5.1
3 .9
4 .7

N o t e .— D ata for bu siness supplies and defense equipm ent,
representing about 14 per cent o f the total, are not show n
separately. B usiness equipm ent rose 12 per cent per year from
1963 to 1967 and 5 per cent from 1967 to 1974. Figures
calculated by m ethod o f least squares.

IP. An expansion of three-fifths in this sector
of industry from 1964 to 1968 was a major
factor in stimulating private demands and ac­
celerating IP growth through 1966 and in limit­
ing the subsequent slowdown in 1967; also, the
subsequent cutback in defense output, which
amounted to 30 per cent over the 1969-71
period, was an important factor in the 1969-70
industrial curtailment.
For the entire period from 1946 to 1974, the
average annual rate of increase for IP has been
4.7 per cent. From the beginning of this century
the rate has been around 4.0 per cent; any rate
for such an extended interval, however, is less
firmly based because of widespread changes in
the economy and in the types of data used to
measure growth.

C Y C L IC A L F L U C T U A T IO N S

Cyclical fluctuations during the 1960’s were
limited in large part by sustained, upward de­
mand pressures associated with worldwide eco­
nomic expansion and the war in Vietnam. For
example, total IP, which traces monthly devel­
opments for a highly volatile sector of the
economy, showed only relatively minor fluctu­
ations until 1969-70 when there was a moderate
but extended downturn. Then in 1974-75, after
rapid expansion from 1971 to mid-1973, there




came a major recession at least as intense as
that in 1957-58.6
Analysis of the behavior of component groups
of IP—such as consumer goods and business
equipment and total products and materials—
has proved useful in appraising cyclical devel­
opments. These fluctuations in recent years have
been influenced as much as—or probably even
more than—in earlier postwar recessions by
changes in the markets for consumer goods.
Consumer buying and credit extension reached
sharply advanced rates in early 1973. Prices at
that time began to rise sharply, with the result
that consumer demands edged off and output
of consumer goods leveled off or showed little
further rise. Sales of autos, in fact, began to
decline in the spring of 1973 and by the year-end
selective reductions had occurred in output of
autos and some other consumer goods.
The major reductions in output during the
winter of 1973-74 were in large autos and
energy products used for consumer and com­
mercial purposes; these curtailments were in­
fluenced by the foreign oil embargo and by the
accompanying shifts in cost and availability of
petroleum products. Output of mobile homes,
which had been sharply reduced in 1973, con­
tinued downward throughout 1974. New hous­
ing starts were also reduced sharply during 1973
and 1974 from the peak levels reached in
1972—about one-half above earlier record rates.
Nevertheless, IP construction products and
home goods were maintained at high levels
during 1973 and most of 1974.
Output of industrial materials—chemicals,
paper, textiles, metals, and mineral fuels—came
so close to capacity levels in 1973 that there
was little room for further expansion (Chart
2-A). Meanwhile, market availability of these
materials during 1973 and most of 1974 was
being limited by continued heavy accumulations
for inventory. This is indicated for materials by
the accompanying experimental monthly indi­
cator of physical stocks. Use of materials in the
6 The 1974-75 IP decline is presently shown to have
been 15 per cent, while the 1957-58 curtailment was
13 per cent. This difference is not especially significant
considering the measurement problems involved and the
preliminary nature of the data for 1975.

Industrial Production— 1976 Revision

manufacture of products continued high for
some months during 1974 after consumer and
business demand had begun to decline and con­
sequently some materials were going into in­
ventories of products.
For a time, the lack of adequate market sup­
plies of materials limited increases in output of
some industrial products. Nevertheless, output
of business equipment, equipment parts, non­
durable consumer goods other than clothing,
and general business supplies, together with
coal and metal mining, continued to expand
until the autumn of 1974. These increases in
production were accompanied by some expan­
sion in the industrial input of materials and of
energy—both electricity and total energy—from
the moderately reduced levels of early 1974.
Meanwhile, industrial labor input eased off
somewhat further (Charts 2-B and 2-C).
The IP revision provides considerable evi­
dence that the boom in business and consumer
investment activities was greater than had pre­
viously been indicated. In the context of rapidly
rising prices, expansion during 1972-74 in out­
put of business equipment, durable consumer
goods, construction products, and materials for
business inventory holdings brought output for
investment purposes to such high levels in 1973
and 1974 that continued expansion at earlier
rates became increasingly unlikely. Meanwhile
inventories were built up so rapidly and to such
high levels relative to sales that a subsequent
cutback in production became almost inevitable.
These and other economic developments, do­
mestic and foreign, set the stage for the broadest
and deepest curtailment in industrial output
since 1957-58. That recession had previously
been the most severe of the postwar period, as
shown in Chart 4, which compares the monthly
patterns of IP during seven major cyclical
downturns and recoveries—including the
prewar 1937-38 period. The color curves in the
chart show to what extent production was af­
fected during two periods of limited slow­
downs— 1951-52 and 1966-67—when de­
creases in some industries were offset to a large
extent by expansion in output of goods in­
fluenced by demands associated with the Korean
and Vietnam wars.




475

CHART 4
Cycles in industrial production

6

0

6

12

18

Months
Months
before__________________ after

6

0

Months
before

6

12

18

Months
after

Seasonally adjusted data; latest m onth show n for 1976 is
March. Each date indicates the last m onth preceding the general
decline in industrial production.

While the cycles have varied considerably in
pattern and extent, as Chart 4 shows, the length
of the curtailment phase in each period except
1937-38 and 1974-75 has been about 8 months.
The decline continued much longer in the
1937-38 recession than in either 1957-58 or
1974-75, and it was about twice as deep. The
1957-58 cycle shows the most pronounced V
shape. The reduction in output during the recent
recession most closely resembled the 1957-58
downturn. According to the revised index, the
recovery has been faster than the old index
indicated but not so fast as the recovery in
1958-59—even if allowance is made for the
advance effects of an impending national workstoppage in the steel industry in June 1959.

476

Federal Reserve Bulletin □ June 1976

Fluctuations in durable and nondurable man­
ufacturing have varied considerably from cycle
to cycle. In the latest recession the reduction
in output of nondurable goods, reflecting mainly
the extensive liquidation in inventories of such
goods, was greater than it had been in 1957-58
or in any other postwar recession, but not so
large as in 1937-38. For durable goods, espe­
cially autos and business equipment, the pro­
duction cutback was much less severe in the
latest period than it had been in 1937-38, when
consumer and business confidence was shaken
by fears of a repeat of the 1929-32 depres­
sion.
Monthly fluctuations during the recent cycle
in the four major IP market measures—materi­
als, total products, consumer goods, and busi­
ness equipment—are shown in Chart 5 in the
historical perspective of three other major post­
war adjustments. Curtailment in output of ma­
terials in 1974-75 was about as great as in
1957-58, and it lasted longer. This fact reflected
in part the more general and more marked
curtailments in demand and activity in foreign
industrial countries in 1974-75 than in 1957-58.
On the other hand, output of consumer goods,
which was reduced twice as much as it had been

in 1957-58, recovered more quickly. In contrast
to the larger decline in consumer goods in the
recent recession, output of business equipment
was reduced less than in 1957-58, and its re­
covery has been less rapid than in 1958-59.
Both the 1974-75 and 1957-58 curtailments
were preceded by rising prices for long periods
during which output of materials was high rela­
tive to output of products, and large inventories
of both materials and products were being ac­
cumulated. In the subsequent liquidation in
1974-75, materials output was reduced much
more than output of products, and in the recov­
ery phase materials rose faster than products.
For nondurable goods materials the read­
justment was relatively prompt; output of these
materials, after declining one-fourth to a low
in March 1975, rose sharply, and by early 1976
it had reached its pre-recession level. Output
of durable goods materials—carrying about
twice as much weight in the IP index as non­
durable materials—showed no upturn until
mid-1975, and by May 1976 it had regained
only about two-thirds of its recession decline.
This slower recovery can be attributed in part
to the lagged upturn in output of business
equipment and in construction activity.

CH A R T 5
Industrial production by m ajor market groups

Materials

Products
S=major steel strikes
Consumergoods

Businessequipment

Seasonally adjusted data; latest are M ay 1976 estim ates.




Industrial Production— 1976 Revision

C O M P A R IS O N S
W IT H R E L A T E D D A T A

The basis for further analysis of current and
longer-run economic developments using IP is
provided by the series in Chart 2 on use of
industrial resources—energy and labor—and on
plant capacity, stocks of materials, labor pro­
ductivity, and unit labor costs. These related
data can be viewed in part as showing the
interrelationships of the goods portion of the
economy. For such analysis, it is necessary to
use many series, and on some occasions prob­
lems of interpretation arise when measures usu­
ally expected to move together do not. This may
be caused by differences in areas represented,
types of data used, or statistical conventions
adopted to handle the data.
One major difference appears in 1974 when
total IP was maintained at advanced levels
through the third quarter, while total gross na­
tional product (GNP) in constant dollars, as
recently revised, was declining.7 Consequently,

A ll

it is of more interest than usual to compare these
two series over a longer period, noting dif­
ferences in growth as well as in cyclical fluctu­
ation. Such a comparison is made in Chart 6,
where the ratio of IP to GNP is shown quarterly
since 1946. This chart also presents a similar
comparison of IP with GNP data for nonfarm
goods output since 1963.
According to the revised figures for both IP
and GNP, the ratio of IP to GNP has risen over
the past three decades at about 1 per cent a year
on the average. Also, as the ratio shows, IP
has fluctuated more cyclically than GNP. Such

in early 1976 were reported as showing somewhat less
increase than the previously published series from 1963
to 1974. This fact apparently reflected in part the change
from a 1958 to a 1972 valuation period for the time
span covered. In contrast, IP uses different initial-year
valuation data for different time periods and then
“ links” the separately weighted indexes. The increase
in total GNP for 1963-74 was at a 3.5 per cent annual
average compounded rate, according to Part 1 of the
Survey o f Current B usin ess , January 1976, Table 13,
p. 25. This rate was about the same as the rate implied
from 1948 to 1963. A least-squares comparison of total
GNP, which includes years other than the terminal
7 The GNP data are compiled by the Bureau of Eco­ years, also showed little difference between the two time
nomic Analysis of the U .S. Department of Commerce.
periods. Terminal-year compounded annual rates for IP
It may be noted that the revised constant-dollar series
are 4.8 per cent from 1963 to 1974 and 4 .2 per cent
from 1948 to 1963.
for total GNP and for goods output that were published

CHART 6
T o ta l I P / G N P
100

Seasonally adjusted quarterly averages o f total IP converted to 1963 base. C onstant-dollar G N P data are reported by BE A
and converted to 1963 base by F .R . Latest data, 1976 Q l.




478

Federal Reserve Bulletin □ June 1976

differences in behavior clearly need to be taken
into account in current comparisons.
Cyclical fluctuations in IP are greater than in
GNP primarily because IP measures production
in a volatile sector of the economy. The GNP
includes, in addition, farm output, structures,
distribution activities, and all types of services,
private and public.
The accelerated expansion after 1963 in pro­
duction of business equipment, construction
products, and equipment parts, and of other
materials included in inventory investment—for
both domestic use and export—has already been
noted (Table 1). Output of durable consumer
goods also grew faster after 1963. The expan­
sion in all of these goods, which together repre­
sent a larger portion of IP than of GNP, came
in wave-like movements that caused total IP and
the IP/GNP ratio to crest at successively higher
levels in 1966, 1969, and 1974.
Another reason why IP rose considerably
more than GNP during the 1972-74 expansion
period was the especially heavy accumulation
of inventories of many types of industrial mate­
rials and products, which affected IP more than
GNP. From the reduced level reached during
the previous readjustment—in the third quarter
of 1971—the IP/GNP ratio rose about one-tenth
to the third quarter of 1974. Then came reduced
final demands for goods and cutbacks in inven­
tories, and as a result the ratio of IP to GNP
dropped by about that amount within a twoquarter period. Later, with economic recovery
under way, the ratio rose moderately in the
following period.8
These recent changes in relationship have
8 It has been suggested that buyers probably shifted
their purchases toward less expensive goods during the
period of price increases in 1974 and that this may have
been reflected in GNP but not in IP, accounting for
part of the change in relative levels from 1973 to 1974.
To the extent that IP is based on a count of the number
of units, a shift to cheaper products would not be
reflected in the index since the last annual level ad­
justment was for 1973. In the case of autos, the revised
IP index is designed to measure any shifts in output
between large and small cars. Shifts in purchases cannot
account for the narrowing of the difference between the
two measures in the first half of 1975 when prices rose
further and increases in incomes slowed.




been broadly similar to those preceding and
accompanying earlier major postwar recessions.
They are shown more clearly by comparing the
quarterly ratios with a trend line drawn through
the postwar cyclical highs during the half-dozen
earlier periods. The indicated increase in the
ratio of about 1 per cent a year is somewhat
higher than that shown by the old data.
While curtailments in production of equip­
ment, which is more heavily weighted in IP than
in GNP, were smaller during the latest downturn
than in earlier postwar recessions, decreases
were larger in output of consumer goods and
construction products, which are also relatively
more important in IP. Furthermore, liquidation
of inventories was much greater than in earlier
recessions, and it is believed that these changes
are usually more fully reflected in the direct
production measures than in the constant-dollar
derivations supplied by the available book-value
inventory data.
The constant-dollar GNP data for nonfarm
goods output usually show more cyclical fluc­
tuation and more growth than the rest of GNP,
which includes services, structures, and farm
output—and in that sense they are more like
IP. The ratio of IP to this GNP component has
generally shown less increase and a more stable
relationship than the ratio of IP to total GNP
(Chart 6). The remaining variations in move­
ments between the two series are a result of
differences in scope (freight transportation and
other distribution activities are included in the
GNP series but not in IP) and in the basic
statistical data and their handling.9
Further analyses will be presented in the 1976
Edition where developments affecting consumer
goods, capital goods, and inventories are con­
sidered separately.
□
9 Over the years IP rises more than it would if general
price indexes for industrial goods rather than unit-value
data drawn from detailed Census materials and other
sources were used in calculating benchmark adjustments
and, indirectly, some adjustment factors used currently.
The smaller price increases implied by the unit values
suggest that actual price rises for industrial goods may
not have been so large as those shown by the available
general price measures.

Industrial Production— 1976 Revision

479

Revised Indexes of Industrial Production—Total and m arket groupings
Seasonally adjusted, 1967 = 100
Jan.

Year

Feb.

Mar.

Apr.

May

June

July

Aug. Sept.

Oct.

Nov.

Dec.

Ql

Annual
Average

Q2

Q3

Q4

76.4
81.2
88.9

77.0
82.5
90.8

78.2
83.7
92.6

76.5
81.7
89.8

TOTAL INDEX
1963........
1964........
1965........

73.8
79.0
86.2

74.5
79.5
86.7

75.0
79.5
87.8

1966........
1967........
1968........
1969........
1970........

94.4 95 .0 96.3
99.8 99 .0 98.5
103.7 104.3 104.7
109.5 110.2 110.1
109.1 108.8 108.8

1971........
1972........
1973........
1974........
1975

108.1
114.6
126.3
129.9
115.2

108.0
115.3
127.8
129.6
112.7

108.0
116.5
128.5
130.0
111 .7

76.9
81.5
89.5

76.6
82.1
90.4

76.7
82.5
90.9

77.5
82.8
91.0

78.1
81.7
92.0

78.4
84.3
92.3

78.3
85.2
93.5

96.5 97.4 97.9
99.2 98.7 98.4
104.9 106.2 106.6
110.6 110.3 111.2
108.6 108.3 108.1

98.4
98.7
106.5
111.8
108.4

98.5
100.0
107.1
112.3
108.3

99.4
100.3
107.1
112.3
107.6

100.0
101.2
107.4
112.5
105.4

99.4
102.6
108.6
111.4
104.8

99.6
103.5
108.8
111 .2
107.2

95.2 97.3 98.8 99.7
99.1 98.8 99.7 102.4
104.2 105.9 106.9 108.3
110.2 110.7 112.1 111 .7
108.9 108.3 108.1 105.8

97.7
100.0
106.3
111.1
107.8

108.5
117.7
128.5
129.9
112.6

109.8
119.3
130.4
131 .8
118.4

108.9
120.7
130.4
131 .7
121 .0

110.3
121 .8
131.1
131.8
122.1

110.9
123.4
131 .4
129.5
122.2

111.3
124.4
131.6
124.9
123.5

112.3
125.8
131 .3
119.3
124.4

108.0
115.0
127.5
129.8
113.2

109.1
118.2
129.3
131 .0
114.2

109.7
120.6
130.6
131 .8
120.5

111.5
124.5
131.4
124.6
123.4

109.6
119.7
129.8
129.3
117.8

79.9
83.7
91 .1

81.0
85.9
91.9

81.7
86.8
92.7

82.8
87.1
94.6

81.3
85.8
92.6

75.7
80.8
88.2

76.6
81.3
88.9

109.1
118.1
129.6
131 .3
113.7

109.6
118.7
129.9
131 .9
116.4

74.4
79.3
86.9

CONSUMER GOODS
1963........
1964........
1965 ........
1966
1967
1968
1969.
1970

..

1971
1972
1973
1974
1975

79.2
84.0
90.6

80.1
83.8
90.9

80.4
83.4
91.7

9 5.6 95.8 96.6
99.0 98.4 98.8
103.3 104.1 104.3
108.9 109.8 110.0
108.0 108.8 109.1
112.2
119.8
129.5
128.3
117.0

112.1
120.6
130.5
127.8
116.1

112.3
121 .5
131.4
128.4
117.0

80.7
85.5
91.5

80.9
86.2
92.0

81 .4
86.0
92.3

96.9 96.9 97.3
99.3 99.0 98.8
104.5 105.2 105.7
109.1 108.2 109.3
109.6 110.1 110.3
113.0
122.5
131 .2
129.6
119.0

113.2
123.0
132.1
130.3
120.4

113.9
123.2
131.2
131.2
124.3

82.0
86.1
93.6

82.6
84.4
94.1

82.7
87.5
94.6

83.1
89.3
95.1

97.1 96.8 97.2
98.6 99.7 100.0
105.5 106.8 107.1
110.9 111.3 110.5
110.5 109.2 108.4

99.2
101.5
107.8
110.6
106.9

98.7
103.1
108.9
109.4
106.3

98.5
104.0
108.3
109.5
110.5

96.0 97.0 97.1 98.8
98.7 99.0 9 9.4 102.9
103.9 105.1 106.5 108.3
109.6 108.9 110.9 109.8
108.6 110.0 109.4 107.9

97.3
100.0
105.9
109.8
109.0

115.5
124.0
131.4
131.2
126.6

117.0
127.5
133.1
129.7
128.7

117.9
128.4
132.4
126.2
131 .1

118.8
130.4
130.5
121 .0
132.3

112.2
120.6
130.5
128.2
116.7

113.4
122.9
131 .5
130.4
121.2

115.5
125.2
131.5
131.5
127.7

117.9
128.8
132.0
125.6
130.7

114.7
124.4
131.5
128.9
124.0

81 .2
87.2
92.3

81 .8
87.0
92 .2

115.1
125.5
130.2
132.2
127.5

115.8
126.2
132.9
131.1
129.0

BUSINESS EQUIPMENT
1963
1964
1965

63.4
70.3
78.2

64.3
69.9
79.6

64.0
70.8
80.6

64.5
72.4
81.3

64.3
73.2
82.5

64.6
73.5
83.7

1966
1967
1968
1969........
1970

93.5
100.3
103.2
109.9
109.8

93.2
100.4
103.5
109.5
109,9

95 .0
100.0
104.5
111.1
109.7

95.8
100.5
104.1
112.3
109.4

97.0 97.9
100.4 99.8
105.7 105.4
111 .7 112.8
108.8 108.1

1971
1972
1973
1974
1975

101.9
110.1
128.2
137.7
130.8

103.0
111 .7
130.3
139.2
128.0

102.3
114.0
130.1
140.3
125.7

102.1
115.1
131.7
141.3
125.6

101.5
116.2
133.1
143.6
126.0

102.3
117.3
134.3
143.8
126.6

66.9
75.1
86.8

68.1
74.5
88.0

68.6
77.0
89.7

68.5
78.3
91.6

63.9
70.3
79.4

64.5
73.1
82.5

66.5
74.7
85.7

68.4
76.6
89.8

65.8
73.7
84.4

99.5 99.9 101.0
97.5 99.4 99.3
104.0 105.8 106.3
113.9 113.9 114.5
108.1 107.2 105.3

100.7
98.4
107.5
115.0
102.2

99.2
101.5
107.7
112.2
102.0

100.6
102.4
108.1
112.2
104.0

93.9
100.2
103.7
110.2
109.8

96.9
100.2
105.1
112.3
108.8

100.1
98.7
105.4
114.1
106.9

100.2
100.8
107.8
113.1
102.7

97.8
100.0
105.5
112.5
107.0

104.1
119.2
135.8
144.4
129.9

106.7
123.2
137.7
144.4
128.8

106.9
125.1
137.8
143.0
129.6

108.2
126.2
138.6
138.7
131.6

102.4
111.9
129.5
139.1
128.2

102.0
116.2
133.0
142.9
126.1

104.6
118.9
135.7
145.4
128.8

107.3
124.8
138.0
142.0
130.0

104.1
118.0
134.2
142.4
128.2

65.6
74.5
85.2

103.8
116.6
134.7
145.2
127.3

67.1
74.4
85.1

105.9
120.8
136.7
146.5
129.2

MATERIALS
75.1
80.3
90.3

75.7
81 .2
91.2

77.6
81.8
91.6

77.8
82.3
92.7

77.1
82.5
93.5

76.4
84.2
94.4

77.9
85.5
93.6

78.4
83.9
94.6

78.8
86.5
94.2

78.3
87.6
95.4

74.0
79.9
89.3

77.1
81.8
91.8

77.1
84.1
93.8

78.5
86.0
94.7

76.7
82.9
92.4

1966
1967,
1968 . . .
1969
1970

96.7 97.7 99.5
101.1 99.5 98.1
103.8 104.1 104.6
109.7 110.8 111 .4
110.8 110.4 110.2

99.3
99.1
105.4
111.4
109.4

100.4
98.1
107.0
111.2
109.0

101.1
98.0
107.4
112.7
108.6

101.3
98.6
107.4
112.9
109.3

102.1
100.0
106.9
114.0
110.4

103.1
100.1
107.0
114.3
110.1

103.5
101.2
107.2
114.3
107.1

102.0
102.4
108.8
113.8
106.4

102.0
103.6
109.1
113.3
108.7

98.0
99.6
104.2
110.6
110.5

100.3
98.4
106.6
111.8
109.0

102.1
99.6
107.1
113.7
109.9

102.5
102.4
108.4
113.8
107.4

100.7
100.0
106.5
112.5
109.2

1971
1972
1973
1974
1975

110.4
116.5
129.9
134.9'
113.7

110.8
120.2
132.4
132.9
108.8

112.3
120.6
133.5
135.2
109.8

112.8
121.3
134.3
135.7
112.6

110.5
112.1
135.1
135.4
114.5

109.2
123.4
135.8
134.8
119.0

111 .4
124.8
135.4
135.4
121.0

111.5
126.6
135.2
132.4
122.0

111.8
127.7
136.0
125.2
123.1

113.4
128.9
136.0
118.0
123.3

110.3
117.3
131.3
134.6
110.7

112.0
120.7
133.4
134.6
110.4

110.4
123.4
135.4
135.2
118.2

112.2
127.7
135.7
125.2
122.8

111.3
122.3
133.9
132.4
115.5

1963
1964
1965

72.9
79.0
88.6

74.1
80.3
88.9

110.0
117.1
131.7
134.4
110.1

110.4
118.4
132.3
134.5
108.3

N o t e . —Major market groups for intermediate products and defense and space equipment are not shown separately.

Figures for total manufacturing, durable manufacturing, nondurable manufacturing, and mining and utilities are available on request.




481

Federal Reserve Operations
in Payment Mechanisms: A Summary
Since its origin in 1913, the Federal Reserve
System has been an active participant in the
Nation’s payments mechanisms. At present the
System is operationally involved in check pro­
cessing, distribution of currency and coin, wire
transfer of reserve account balances, wire
transfer of Federal Government securities, and
clearing payments exchanged on magnetic tape.
The System also performs an operating function
as the fiscal agent of the U.S. Government and
of several Government agencies and handles
certain financial transactions on behalf of
foreign central banks and governments.
Recently, the Board of Governors was asked
to provide a summary of the System’s opera­
tional role in such payments mechanisms. The
history, present scope of operations, and legal
authority are outlined in this article for each
major area of the System’s involvement in each
payments mechanism. This review does not
present an exhaustive treatment of these activi­
ties, nor does it examine other Federal Reserve
collection activities—notably, the collection of
so-called noncash items, such as bonds and
coupons of corporations and municipalities.
In addition, this summary describes two of
the Board’s regulatory actions permitting mem­
ber banks to transfer funds from savings ac­
counts to third parties. Although these types of
transfers are not processed by the Federal Re­
serve, they are of importance in obtaining a
better understanding of current fund transfer
systems.

C H E C K C O L L E C T IO N
H

is t o r y

B

a s is f o r

and

Statutory

P a r t ic ip a t io n

Prior to the enactment of the Federal Reserve
Act, checks were exchanged through a system
of clearinghouses (or exchanges). Often ex­



change charges were levied by the bank that
finally paid the check,1 and since the checks
were not paid in full, the practice was termed
“nonpar banking.” The exchange charge was
generally xk of 1 per cent of the face value of
the checks paid, and many banks engaged in
circuitous routing of checks to avoid such
exchange charges. Hence, exchange charges
resulted in a slow, cumbersome, and costly
check collection system and were considered an
impediment to commerce and economic growth.
The Federal Reserve Act changed these rela­
tionships because member banks were required
to pay for checks presented to them by Reserve
Banks at par and the Reserve Banks were au­
thorized to exercise the functions of a clearing­
house for member banks.
In July 1916 the Board of Governors required
all Federal Reserve Banks to function as clear­
inghouses for member banks. Reserve Banks
would receive checks from members that were
drawn on a member or nonmember bank
agreeing to pay at par for items presented by
the Federal Reserve. After that, nonpar clearance
was eliminated in many sections of the country
and in the major money centers. However, it
has continued in certain States in the South; as
of June 1, 1976, there were still 64 nonpar

N ote .— This article was prepared by the staff of the
Board of Governors for presentation to the National
Commission on Electronic Fund Transfers.
1 “ Exchange charges” should be distinguished from
“ collection charges.” Collection charges are levied on
the payee by the payee’s bank for collecting the check.
Exchange charges are exacted by the bank on which
the check is drawn (the “ drawee bank” ). Exchange
charges developed because funds, except when paid
over the counter, were transferred by remitting a draft
on the drawee bank’s correspondent in the city in which
the presenting bank was located. For the service ren­
dered by the drawee bank in remitting funds available
for use in the city in which the payee’s bank was
located, a small exchange charge was made and de­
ducted from the amount of the remittance.

482

Federal Reserve Bulletin □ June 1976

banks, operating chiefly in Louisiana, South
Carolina, and Texas.
The general provisions of law under which
the Federal Reserve Banks exercise check col­
lection functions are as follows:2
1. The first paragraph of Section 13 of the
Federal Reserve Act (12 U.S.C. 342) that pro­
vides in part:
Any Federal reserve bank may receive from
any of its member banks, and from the
United States, deposits of current funds in
lawful m oney, national-bank notes, Federal
reserve notes, or checks, and drafts, payable
upon presentation, and also, for collection,
maturing notes and bills; or, solely for pur­
poses of exchange or of collection, may
receive from other Federal reserve banks
deposits of current funds in lawful m oney,
national-bank notes, or checks upon other
Federal reserve banks, and checks and
drafts, payable upon presentation within its
district, and maturing notes and bills payable
within its district; or, solely for the purposes
of exchange or of collection, may receive
from any nonmember bank or trust company
deposits of current funds in lawful m oney,
national-bank notes, Federal reserve notes,
checks and drafts payable upon presentation,
or maturing notes and bills; P rovided, Such
nonmember bank or trust company main­
tains with the Federal reserve bank of its
district a balance sufficient to offset the items
in transit held for its account by the Federal
reserve bank: . . . .

2. The thirteenth paragraph of Section 16 of
the Act (12 U.S.C. 360) that provides:
Every Federal reserve bank shall receive on
deposit at par from member banks or from
Federal reserve banks checks and drafts
drawn upon any of its depositors, and when
remitted by a Federal reserve bank, checks
and drafts drawn by any depositor in any
other Federal reserve bank or member bank
upon funds to the credit of said depositor
in said reserve bank or member bank.

2Other important sections of the Act, insofar as
payment mechanism services, are Section 4 (12 U .S.C .
341), which permits Reserve Banks to carry on the
business of banking, Section 11 (12 U .S.C . 248(i)),
which authorizes the Board to establish regulations to
enable the Board to accomplish the functions detailed
in the Act, and Section 19(f) (12 U .S.C . 464), which
permits members to check against and withdraw funds
from reserve accounts maintained at Federal Reserve
Banks, subject to regulations of the Board of Governors.



3. The fourteenth paragraph of Section 16(12
U.S.C. 248(o)) that provides in part:
The Board of Governors of the Federal R e­
serve System shall make and promulgate
from time to time regulations governing the
transfer of funds and charges therefor among
Federal reserve banks and their branches,
and may at its discretion exercise the func­
tions of a clearing house for such Federal
reserve banks, or may designate a Federal
reserve bank to exercise such functions, and
may also require each such bank to exercise
the functions of a clearing house for its
member banks.

In nontechnical language, these provisions
have been interpreted to mean that a Federal
Reserve Bank:
1. Must receive deposits at par—that is, must
accept deposits for the full face value—and the
deposits may be in the form of checks drawn
on member or nonmember clearing banks if sent
to it by its member banks or other Reserve
Banks or by a member bank in another district
if permitted by the Reserve Bank of that district;
2. May receive from member banks checks
payable at par upon presentation anywhere in
the country, whether drawn upon member or
nonmember banks;
3. May, solely for purposes of exchange or
collection, receive from other Reserve Banks
checks payable at par upon presentation within
the receiving Bank’s district; and
4. May, solely for purposes of exchange or
collection, receive from any nonmember bank
in its district checks payable at par upon pre­
sentation at any bank in the country, provided
such nonmember bank maintains a clearing bal­
ance with such Reserve Bank.3
Pursuant to Sections 11, 13, and 16, the
Board has promulgated Regulation J (12 CFR
Part 210) designed to afford the public and the
3 The right of the Reserve Bank to present checks
to nonmember banks was acknowledged in A m erican
Bank and Trust Co. v. Federal R eserve B ank, 262 U .S.
643. The Federal Reserve does not have the authority,
however, to require nonpar banks to pay at par. See
Farm ers B ank v. Federal R eserve B ank , 262 U .S. 649.
Therefore, checks drawn on nonpar banks cannot enter
the Federal Reserve clearing system but must be sent
directly to the bank on which drawn or presented by
a correspondent bank.

F.R. Operations in Payment Mechanisms

banks of the country a direct, expeditious, and
economical system for the collection of checks.
Regulation J details the rights and liabilities of
parties using Federal Reserve collection facili­
ties and permits the Reserve Banks to adopt
“operating circulars” that detail, in part, the
time limits and procedures established by the
Reserve Bank for collecting checks as well as
other operating matters. Regulations and
operating circulars have been issued by the
Federal Reserve since 1914. The operating cir­
culars are viewed as contracts between the Fed­
eral Reserve and the banks and, as specifically
provided in Section 4-103 of the Uniform Com­
mercial Code, the Federal Reserve operating
circulars constitute agreements that can vary the
effect of the provisions of the Code.
Section 210.4 of Regulation J authorizes any
“ sender,” that is, a member or nonmember
clearing bank in the district, to send to the
Reserve Bank of the district checks payable at
par in any Federal Reserve district. This au­
thorization to senders in effect means that Re­
serve Banks are required to receive such items
in accordance with the provisions of the regula­
tion. Hence, the Reserve Banks do not refuse
a sender’s items, and the permissive statutory
authority described above has been made an
obligation on the part of Reserve Banks.
The Federal Reserve Act does not expressly
authorize a Reserve Bank to receive checks
directly from banks in other districts. Regulation
J provides, however, that, as permitted or re­
quired by a Reserve Bank, a member bank in
one district may send checks directly to the
Reserve Bank of any other Federal Reserve
district in which the checks are payable. This
rule provides an efficient mechanism to handle
interdistrict sendings and avoids processing (and
the attendant delay) by an intermediate Reserve
Bank.
During the late 1950’s and early 1960’s, the
banking industry and the Federal Reserve
moved toward automation in handling the
mounting volume of paper checks being pro­
cessed. The initial step permitted the check to
be machine processed by adding the MICR
(Magnetic Ink Character Recognition) numbers
at the bottom of the check. The use of computers
and high-speed check handling equipment in­



483

creased significantly the speed and efficiency
with which checks were cleared. During the
early 1970’s the Federal Reserve implemented
the Regional Check Processing Center (RCPC)
program aimed at increasing the number of
checks cleared on an overnight basis through
Federal Reserve facilities. Continued growth in
the number of checks led to experimentation
with use of encoding payment information on
magnetic tape. (Developments in handling
magnetic tapes are summarized later.)
P resent S cope of O peratio n s
By way of background to the entire check pay­
ment system, several relationships and costs
should be considered. For example, it can be
assumed that the bank receiving a deposit in
the form of a check will move expeditiously
to obtain possession of the funds from the bank
on which the check is drawn. Checks for large
amounts are often segregated and subject to
expedited handling, and bank messengers may
make over-the-counter presentment to the
drawee for immediate credit in order that the
proceeds of the check may be immediately
available. Other items may be sent directly to
the bank on which they are drawn, to a clear­
ing house, to a correspondent, or to the nearest
Federal Reserve office. A correspondent may,
in turn, collect certain items and turn others over
to the Federal Reserve. Even though there are
a variety of alternative collection arrangements
available, after “on us”4 and local clearing
items are removed, most of the checks cleared
in the Nation enter directly or indirectly into
the Federal Reserve clearing system.
Check collection involves processing and
transportation costs. The bank of first deposit
must ready the check for subsequent processing
and pay the cost of delivering it to the bank
on which it is drawn or to a clearing agent—the
Federal Reserve, a clearinghouse, or a corre­

4 Items that the payee deposits at the drawee bank
are termed “ on us” items, and often a predominant
portion of the total number of checks deposited are of
this character, especially in areas in which there are
large branching systems or concentrations in demand
deposits.

484

Federal Reserve Bulletin □ June 1976

spondent. Thereafter the clearing agent, if there
is one, has the responsibility for delivery and
presentation of items to the bank on which the
items are drawn. The transportation costs asso­
ciated with that delivery may be substantial.
Clearinghouses (and check processors permit­
ting “in house” banks to exchange checks)
incur nominal delivery costs, but delivery by
other clearing agents involves substantial con­
tractual costs for surface and air courier delivery
under prevailing operations. Correspondents re­
coup costs they bear by fees charged or by
earnings on collected funds in correspondent
balances.
A final but vital aspect of check clearing is
the actual movement of funds. The check serves
as documentation for crediting and debiting in­
dividual accounts in banks. The matrix of total
credits and debits arising from individual items
processed at particular times provides the basis
for net settlement among all pairs of banks.
Generally, settlement takes the form of charges
and credits to reserve accounts maintained by
member banks at the Federal Reserve, at present
amounting to about $35 billion. However, set­
tlements are also made through correspondent
balances.
As to the specific Federal Reserve operations,
the Federal Reserve presently maintains 46
check-clearing operations with two more to be­
come operational during 1976. The Federal Re­
serve clears checks and check-like instruments5
that have been deposited with member banks6
and forwarded to the Federal Reserve for col­
lection. The Federal Reserve ultimately presents
these items for payment either directly to the
financial institution upon which the items are
drawn—member or nonmember—or to a pro­
cessing center designated by that institution.
The Federal Reserve credits the depositing
bank with funds in accordance with the Reserve
Bank’s “ availability schedule.” This schedule
5Among the check-like documents handled by the
System are the “ NOW account” drafts for thrift and
commercial bank institutions, the “ share-drafts” for
credit unions, and the payable-through draft used by
corporations.
6 In RCPC zones nonmember banks— as agents for
member banks— may forward to the Federal Reserve
all items p a yab le in the zone.




reflects the time that the Federal Reserve nor­
mally takes to receive payment from the bank
on which the check is drawn. Under current
schedules, credit for checks deposited at a Fed­
eral Reserve office may be given on the day
of deposit, the following day, or the second
following day even if the actual time necessary
to present the check extends beyond the day
credit is made available to the bank depositing
the checks. If the item is not collected until after
the credit is passed, Federal Reserve float is
generated. Currently, Federal Reserve float
averages about $2.0 billion. Since the extension
of Federal Reserve credit through float has a
random effect on the availability of reserves, it
hampers the measurement of the money supply.
Thus, Federal Reserve System operations are
geared to holding float at the lowest possible
level.
To accomplish the rapid delivery of checks
among Federal Reserve offices (about 40 per
cent of the volume is deposited outside the zone
in which the item is payable), the System uti­
lizes an air charter service, commercial airlines,
and other air courier services. In-zone trans­
portation of checks from Federal Reserve offices
to financial institutions on which checks are
drawn is accomplished at Federal Reserve ex­
pense by contract courier services and the U.S.
Postal Service. For all intraterritorial items,
however, institutions that deposit items with the
Federal Reserve pay for the courier cost of
delivering such items to the Federal Reserve.
The Federal Reserve introduces checks re­
ceived from the Federal Government into this
clearing system. With this exception, the Fed­
eral Reserve’s entire clearing function is deter­
mined by the volume of items delivered by
member banks and to a limited degree by non­
members. Thus, in its clearing operations the
Federal Reserve’s role is one of reacting to
flows generated by commercial banks. If the
U.S. banking system were concentrated and
more like those of the European countries, there
would undoubtedly be a less significant clearing
role for the Federal Reserve because of the high
proportion of “ on us” and direct exchange
items.
The volume of items cleared through the
Federal Reserve’s check collection system has

F.R. Operations in Payment Mechanisms

grown substantially as shown below (in mil­
lions):
Year

V olum e

Year

V olum e

1920
1930
1940

504
904
1,057

1950
1960
1970
1975

1,955
3 ,4 1 9
7 ,1 5 8
1 1 ,4 1 0

A U T O M A T E D C L E A R IN G H O U S E S
H

is t o r y

B

a s is f o r

and

Statutory

P a r t ic ip a t io n

The automated clearinghouse (ACH) concept
was designed in response to the growing volume
and increased cost of processing paper checks.
In 1968 a group of commercial bankers in
California formed the Special Committee on
Paperless Entries (SCOPE) to study the feasi­
bility of exchanging payments on magnetic tape.
This system was to augment the check system
by providing a more convenient and less costly
alternative to the use of checks. As a result of
this study, more than 100 banks in California
formed an ACH association, and the Federal
Reserve Bank of San Francisco was requested
and agreed to provide the clearing and settle­
ment facilities for the exchange of such pay­
ments on magnetic tape. Subsequently, other
Reserve Banks were requested to utilize existing
facilities to process the magnetic tapes for other
ACH associations. Currently, the Federal Re­
serve provides the clearing and settlement facil­
ities for such operations in 19 offices, and 5
more offices are expected to begin operations
in 1976. The statutory basis for System in­
volvement is the same as that for checks.
Pr e sen t S cope

of

O p e r a t io n s

ACH operations are designed to handle repeti­
tive funds transfers of small dollar amounts,
such as salaries and wages and mortgage and
insurance premium payments. The Federal Re­
serve uses its existing computer and courier
facilities to clear and deliver such items.
Automated clearinghouse operations and the
Federal Reserve’s role in such operations es­



485

sentially parallel check-clearing operations ex­
cept that the payment information is exchanged
on magnetic tape as opposed to paper checks.
In an ACH operation, financial institutions
create computer tapes of debit and credit items
based upon customer instructions and deliver the
tapes to their local Federal Reserve clearing and
settlement facility, just as those institutions
would deliver checks to the Federal Reserve’s
check-clearing and settlement facility. A Fed­
eral Reserve computer—which is also used for
other operational purposes—reads, edits, and
balances the information on the tape, sorts ac­
cording to the receiving financial organization,
and makes the debit and credit entries in mem­
ber bank reserve accounts for settlement for both
the originating and the receiving financial orga­
nization. When the processing has been com­
pleted, the computer creates output media con­
sisting of magnetic tapes or descriptive paper
listings. The Federal Reserve sends the output
media to the receiving financial organization
using the same delivery system as that used for
delivering checks.
The Federal Reserve is not the sole processor
of automated payments. As noted previously,
paper checks are cleared through private clear­
ing arrangements apart from the Federal Reserve
facilities, and it should be expected that private
facilities will handle certain automated pay­
ments.
At the present time, the Federal Reserve will
receive items on tapes from any member bank
and any member of an ACH association. The
Federal Reserve will deliver such items to
member banks and members of ACH associa­
tions under the following guidelines:
1. Items may be delivered directly to institu­
tions offering demand deposit accounts in the
same manner that checks are presented.
2. Items may be delivered directly to institu­
tions not offering demand deposit accounts pro­
vided such institution receives a sufficient vol­
ume of such items to warrant separate delivery
and is located on an existing check-courier
route.
3. Items may be delivered to a data process­
ing service bureau provided the service bureau
receives a sufficient volume of such items to

486

Federal Reserve Bulletin □ June 1976

warrant separate delivery and is located on an
existing check-courier route.
4. Items may be picked up at the local Fed­
eral Reserve office provided that the volume is
sufficient to warrant such action.
5. Items may be delivered to an endpoint that
currently receives checks directly from the Fed­
eral Reserve office and the institutions may
arrange for delivery from that endpoint (that is,
the pass-through method).
6. Items may be mailed by the Federal Re­
serve to any financial organization regardless of
its location.
The volume of payments processed in this
manner is quite small at present, compared with
the volume of checks processed. The 19 opera­
tional Federal Reserve offices cleared and settled
for approximately 270,000 such automated
payments in May 1976.

FED ERA L RESERV E
W IR E N E T W O R K
H

is t o r y

B

a s is f o r

and

Statutory

P a r t ic ip a t io n

From the first days of the Federal Reserve, there
was a need for rapid movement of both financial
and administrative messages among Federal
Reserve offices. Initially, communication was
through Western Union and Postal Telegraph
facilities. In 1918 the Federal Reserve, in rec­
ognition of the need for more rapid and secure
communication facilities, installed a private
Morse code system. This method of transfer
continued until 1937 when it was converted into
a teletype system. In 1940, in response to a
growing volume of traffic, the Board of Gover­
nors and the Federal Reserve Bank of Chicago
were designated as primary relay stations. The
relay station, or “ switch,” concept was also
incorporated when an automatic message system
using advanced teletype machines was installed
in 1953 with the Richmond Bank designated as
the switching center. This system handled 6,000
messages per day initially and linked Reserve
Banks and branches, the Board of Governors,




the U.S. Treasury, the Commodity Credit Cor­
poration, and the Reconstruction Finance Cor­
poration.
In 1970 the first components of the present
automated network were installed, and the sys­
tem was fully automated in late 1973. Each of
the district offices now have installed communi­
cations switches to which Reserve Banks,
branches, offices, the Treasury, and a number
of member banks are interconnected nationwide
through a central switch facility in Culpeper,
Virginia. This system allows for virtually in­
stantaneous movement of funds among member
banks of the System and aids banks in the
efficient handling of reserve balances. In view
of the need for a quick and efficient method of
handling funds transfers of very large amounts
in the Nation’s money markets, the Board re­
gards wire operations as a necessary and vital
tool in conducting its monetary affairs.
During 1975, 17.4 million funds transfers,
valued at $31.4 trillion, were handled on the
network, as well as 1.5 million Government and
Government agency securities transfers and 1.0
million administrative messages. The System’s
network is designed to handle the very large
transfers and to discourage small transfers; a
$1.50 charge is imposed for transfers of less
than $1,000, and large transfers are handled
without charge to members.
The statutory basis for the System’s involve­
ment in transferring member banks’ reserve
balances is basically the same as its involvement
in the check-clearing mechanism that has been
discussed previously. In addition, paragraph 14
of Section 16 of the Federal Reserve Act au­
thorizes the Board to regulate the transfers of
funds among Reserve Banks, and Section 13
authorizes Reserve Banks to receive deposits
from their members.
Pr esen t S cope

of

O p e r a t io n s

Three types of messages are handled on the
network: (1) transfers of reserve account bal­
ances (almost exclusively in large dollar
amounts) from one member bank to another,
(2) transfers of U.S. Government and Federal
agency securities, and (3) administrative and
research information. The transfer of reserve

F.R. Operations in Payment Mechanisms

balances is used by member banks of the Federal
Reserve System to transfer (1) funds as a result
of purchasing and selling Federal funds, (2)
correspondent bank balances, and (3) funds to
other members on behalf of customers.
Transfers to other members made by member
banks on behalf of their customers include (1)
the purchasing and selling of commercial paper,
bonds, and other securities, and (2) replenishing
corporate demand deposits. For the latter, the
Federal Reserve is involved only in crediting
and debiting the banks involved in the transfer,
and the System does not collect and/or store
information related to the corporation that orig­
inates or receives the funds transferred.
All money transfers of reserve balances are
credit transfers—that is, a member bank in­
structs the Federal Reserve to transfer funds to
another member bank. If the members maintain
balances at the same Federal Reserve Bank,
each reserve balance is debited and credited
accordingly. If the institutions do not maintain
balances at the same Federal Reserve Bank, the
first Federal Reserve Bank debits the reserve
account of the sending bank and credits the
account of the Federal Reserve Bank in whose
district the receiving bank is located. The latter
Federal Reserve Bank debits the account of the
sending Federal Reserve Bank and credits the
account of the receiving bank. Reserve Banks
settle by use of the Interdistrict Settlement Fund.
Nonmember banks, other financial institutions,
businesses, and consumers may request a mem­
ber bank to send funds through the Reserve
System.

487

Federal Reserve Banks the duties and functions
of the Assistant Treasurers in connection with
the exchange of paper currency and coin of the
United States (41 Stat. 654). Pursuant to this
authority, Reserve Banks have been authorized
and directed by the Treasury to make an equita­
ble and impartial distribution of available sup­
plies of currency and coin in all cases directly
to member banks and to nonmember commer­
cial banks (see 31 CFR 100).
Pr e se n t S cope

of

O

p e r a t io n s

The volume of currency and coin distribution
operations, in millions of pieces, has grown
substantially as shown below:
Year

Currency

1925
1935
1945
1955
1965
1975

1,947
2 ,1 4 8
3 ,0 1 6
4 ,2 8 2
5 ,1 4 4
6,551

C oin
2 ,3 2 9
2 ,5 9 0
4 ,5 6 2
7 ,0 0 8
5 ,8 5 5
13,611

There are 37 Federal Reserve offices that
process currency and coin. During 1975, 6.5
billion pieces of currency and 13.6 billion pieces
of coin were received and counted. In addition
2.6 billion pieces of currency were retired from
circulation and destroyed. Fourteen Federal Re­
serve offices provide coin wrapping services.
Almost one-half of the cost of currency and coin
operations is for transportation by armored truck
of the money requirements of the more than
18,000 banking offices serviced directly by the
Federal Reserve.

F IS C A L A G E N T
C U R R E N C Y A N D C O IN
H

is t o r y

B

a s is f o r

and

S tatutory

P a r t ic ip a t io n

Section 16 of the Federal Reserve Act authorizes
the issuance and redemption of Federal Reserve
notes. The Federal Reserve Banks have issued
and redeemed such notes since 1914.
On May 29, 1920, the Congress authorized
the Secretary of the Treasury to transfer to the




H

is t o r y

B

a s is f o r

and

Statutory

P a r t ic ip a t io n

Section 15 of the Federal Reserve Act states
that Federal Reserve Banks, when required by
the Secretary of the Treasury, “ shall act as
fiscal agents of the United States; and the reve­
nues of the Government . . . may be deposited
in such banks, and disbursements may be made
by checks drawn against such deposits.” The
Federal Reserve has also been designated as

488

Federal Reserve Bulletin □ June 1976

depository and fiscal agent for several interna­
tional agencies (such as the Inter-American De­
velopment Bank) in various other sections of
the U.S. Code.
P resent S cope of O per atio n s
Federal Reserve Banks act as the Government’s
principal fiscal agents. Among the activities
performed, the Banks maintain banking ac­
counts for the Treasury, handle Government
checks, receive applications from the public for
the purchase of securities being sold by the U.S.
Treasury, allot the securities among bidders,
deliver securities, collect payment from the
buyers, register and redeem securities, make
wire transfers of securities to other cities, make
denominational exchanges of securities, pay in­
terest on coupons, and conduct transactions in
the market for various Treasury accounts. Most
of these activities are under the general supervi­
sion of the Treasury, which reimburses the
Reserve Banks for most fiscal agency functions.
In addition, the Reserve Banks perform fiscal
agency services in connection with the financial
activities of various Federal or Federally spon­
sored credit agencies, and reimbursement is
provided by the Treasury (or other Government
agencies) for much of the expense incurred.
The fiscal agency functions that relate to the
payments mechanism are as follows:

under the Treasury’s Direct Deposit of Federal
Recurring Payments Program. This program
will expand nationwide by the end of 1976 with
all Federal Reserve offices distributing an esti­
mated 7.5 million payments monthly.
2. TREASURY TAX ACCOUNTS. Pay­
ments of Federal taxes (income, Federal Insur­
ance Contributions Act, and so on) made by
corporations and some individuals are received
from commercial banks, processed, and credited
to the account of the Treasury. About 45 million
tax payment forms were processed in 1975.
3. GOVERNMENT CHECKS. Government
checks are received from banks for charge to
the Treasurer’s account. This activity, which is
essentially a check-collection function, pro­
cessed more than 800 million Treasury check
payments in 1975.
4. INTEREST PAYMENT COUPONS.
Coupons representing the payment of interest
on U.S. Government securities are processed for
the Treasury. Approximately 9 million coupons
were processed in 1975.

5. U.S. POSTAL SERVICE MONEY
ORDERS. U.S. Postal Service money orders
are received from banks for payment. Money
orders are charged to the Treasurer’s account
and shipped to the U.S. Postal Money Order
1.
DIRECT DEPOSIT OF FEDERAL RE­ processing center in St. Louis. This activity
CURRING PAYMENTS PROGRAM. Certain
processed more than 170 million items in 1975.
Federal recurring payments are received on
magnetic tape from Government disbursing
6. U.S.D.A. FOOD COUPONS. Food
centers, processed, and distributed to financial
coupons are received from banks for payment,
organizations.
counted, and destroyed. This activity processed
The same general procedures and the same
about 2.5 billion items in 1975.
computer systems are used to process electronic
data representing U.S. Government payments as
are used for commercial payments through the
TRANSFERS FRO M
Federal Reserve’s automated clearing and set­
S A V IN G S A C C O U N T S
tlement facilities discussed earlier. Currently,
each month approximately 540,000 U.S. Air
B ill P ayer S ervices
Force payroll payments are processed and de­
livered to 9,000 financial institutions. In Febru­
In July 1975, in recognition of a need for more
ary 1976 the Federal Reserve Bank of Atlanta
convenient banking services, the Board
distributed the first social security payments
amended Regulation Q to authorize member




F.R. Operations in Payment Mechanisms

banks of the Federal Reserve System to permit
depositors to withdraw funds from savings ac­
counts pursuant to nontransferable orders or
authorizations. Prior to this change, the deposi­
tor generally7 had to make requests for with­
drawal in person, but the bank could permit
regular transfers from savings for mortgage
loans and related payments. The Board was
requested to permit banks to offer a full range
of bill payment services without regard to the
nature of the depositor’s indebtedness. In pro­
mulgating the changes, the Board relied upon
its authority under Section 19 of the Federal
Reserve Act (12 U.S.C. 461) to define terms
used therein.
The actual transfer from a savings account
is not handled by the Federal Reserve since that
transfer is an “on us” transfer.
The amendment to Regulation Q authorized
member banks to offer bill-paying services but
did not specify the form for that service. The
following examples may be useful:
1. The depositor will sign a contract with the
bank specifying the conditions under which
withdrawals will be permitted. Such a contract
will be the authorization to the bank to honor
the depositor’s instructions. The bank may be
authorized to pay a certain creditor, such as a
utility company, every month upon receipt of
information by the bank that funds are due and
owing. If the creditor maintains a deposit with
7There were exceptions for creditors, administrators
of estates, court orders, and so on. See 12 CFR
217.5(c)(i)-(vi).




489

the same bank, the transfer will be made on
the books of the bank; otherwise, the bank
would write a check to the creditor.
2. The depositor may write individual with­
drawal orders to the bank requesting transfers
to be made to parties named in the order. These
orders may be given at irregular intervals and
in irregular amounts. The bank would transfer
the funds according to the order. The orders are
nontransferable, and only the depositor may
send instructions to the bank.
T e l e p h o n ic T r a n sf e r s

In April 1975 the Board authorized member
banks to permit their customers to transfer funds
from a savings account based upon the cus­
tomer’s telephonic instructions. The Board be­
lieved that it was no longer true that unrestricted
use of the telephone would absolutely destroy
the distinction between savings and demand
accounts. In its statement, the Board noted that
the telephone was an accepted medium for
transmitting financial data and that its action
would permit more flexibility in communicating
the customer’s instructions to a bank. In per­
mitting such withdrawals, the Board relied upon
its authority under 12 U.S.C. 371b to establish
rules governing the payment of deposits.
As with bill payer amendments, the Federal
Reserve is not operationally involved in such
transfers. However, it appears that growing
numbers of banks are now offering such a serv­
ice to their customers.
□

490

Treasury and Federal Reserve
Foreign Exchange Operations: Interim Report
This interim report, covering the period Febru­
ary through April 1976 , is the seventh of a
series providing information on Treasury and
System foreign exchange operations to supple­
ment the regular series of semiannual reports
that are usually issued each March and Sep­
tember. It was prepared by Alan R. Holmes,
Manager , System Open Market Account , and
Executive Vice President of the Federal Reserve
Bank of New York , and Scott E. Pardee , D ep­
uty Manager for Foreign Operations of the
System Open Market Account and a Vice Pres­
ident of the Federal Reserve Bank of New York.

In early 1976 the dollar was largely shielded
from the variety of tensions that developed in
markets for other currencies. By that time the
latest economic indicators suggested that the
U.S. recovery was regaining momentum and
was more solidly based than were the more
recent upturns in other industrial countries.
Moreover, with the United States already
having one of the lowest rates of inflation among
industrial countries, the further moderation in
the uptrend of prices here bolstered sentiment
toward the dollar.
Elsewhere, divergent price and productivity
performances among European countries had
led many market participants to expect that
exchange-rate adjustments might again be nec­
essary—both by those within the Economic
Community (EC) “ snake” arrangement and by
other European countries whose trade is closely
linked to that group. During January concern
over political and economic developments in
Europe generated speculative pressures in mar­
kets for several European currencies. The Italian
lira declined after the Bank of Italy withdrew
temporarily from the market to conserve its
reserves during a prolonged Cabinet crisis. In
several other markets central banks intervened




sometimes heavily to moderate fluctuations in
their currencies. The dollar occasionally came
on offer against the German mark, Dutch
guilder, and Swiss franc in late January, but
Federal Reserve intervention was limited to
modest sales of marks out of existing balances
without renewed recourse to the System’s swap
arrangements with foreign central banks.
By early February intense two-way specula­
tion had developed within the EC snake ar­
rangement. With the French franc heavily on
offer and the German mark in demand, the two
currencies were pushed toward the opposite
extremes of the EC band. Strains also developed
within the 1.5 per cent Benelux band, driving
the Belgian franc to the bottom and the Dutch
guilder to the top. Since the dollar figured
heavily in these various dealings—both as a
vehicle currency for many market participants
and as an intervention currency for central
banks—it was soon caught up in the crossfire.
With several central banks defending their own
currencies through dollar sales, the potential for
even larger accumulations of dollar balances in
traders’ positions began to weigh on market
psychology. Dealers, therefore, sought to shift
into currencies that they believed would be more
likely to rise in the very near future. In the
process, the German mark began to rise more
sharply, exerting an upward pull on other Euro­
pean currencies including those still under gen­
eralized selling pressure. Consequently, the
dollar, which by February 2 had already slipped
by 2.5 per cent against the mark from the late
1975 highs, declined a further 1.5 per cent by
February 11.
As speculative pressures mounted, the French
and German central banks stepped up their in­
tervention to defend the limits of the snake, not
only in dollars but in each other’s currencies
as well. At the same time, with the New York

Foreign Exchange Operations: Interim Report

market also becoming unsettled, the Federal
Reserve intervened on 4 days between February
2 and 11. The System sold a total of $137.4
million equivalent of marks, financed by $80.9
million of drawings under the swap arrangement
with the German Federal Bank and by use of
existing balances. In addition, the System sold
$19.6 million equivalent of Dutch guilders,
drawn on the swap line with the Netherlands
Bank.
The immediate strains on the snake then
eased, as the concerted intervention by the
member central banks was reinforced by strong
statements by their respective governments
denying the need or advisability of rate adjust­
ment. Trading conditions gradually improved
during late February, and the Federal Reserve
intervened on only two occasions when the
dollar dropped abruptly against the mark, selling
a total of $15.8 million equivalent from bal­
ances. Otherwise, the dollar gradually rose
against the main continental currencies to above
the levels of early February, providing the op­
portunity for the System to acquire $54.1 mil­
lion of marks in the market and from corre­
spondents. Part of these acquisitions was used
in early March to repay $26.4 million of the
recently incurred swap indebtedness with the
German Federal Bank.
This temporary calm in the European ex­
change markets was again broken early in
March, when sterling suddenly came under
selling pressure and fell below the $2.00 level.
Market fears of widespread readjustments in
European currency relationships quickly resur­
faced. By March 5 the EC snake was again
stretched to its limits and required substantial
intervention to maintain the prescribed margins.
As market concern over the durability of exist­
ing parities in the European snake progressively
deepened, intervention in EC currencies swelled
to massive proportions. With markets increas­
ingly nervous and unsettled, the Federal Reserve
entered the New York market on March 5 and
March 12 with offerings of marks, selling $52.8
million equivalent of which $23.2 million was
financed under the swap line with the German
Federal Bank and the rest from balances.
Following a meeting of EC Finance Ministers




491

over the weekend of March 13-14, the French
Government announced that it would withdraw
the franc from the snake. At the same time,
the Dutch and Belgian authorities announced the
suspension of the separate 1.5 per cent Benelux
band. Over subsequent days, however, specula­
tion persisted over the possibility of further
adjustments in rates for other European curren­
cies and bidding for marks remained strong,
pushing the dollar down a further 1 per cent.
These pressures spilled into the New York mar­
ket on March 16-17, and the Federal Reserve
again intervened in marks, selling $34.9 million
equivalent, of which $29.8 million was drawn
under the swap line and the remainder from
balances. Thereafter, further sizable interven­
tion in European currencies, supported by re­
strictive monetary measures by those countries
whose currencies were pinned to the bottom of
the snake, and firm denials by German and other
EC government officials of any intention of
altering existing parities led to a gradual relax­
ation of these speculative tensions.
Meanwhile, evidence of additional improve­
ment in production and employment levels in
the United States, coupled with further encour­
aging price developments, reinforced the gener­
ally favorable market sentiment toward the dol­
lar. Market expectations of an early firming of
U.S. short-term interest rates also had a steady­
ing influence. Consequently, although the dollar
was at times caught up in the backwash of
further flows out of sterling and the Italian lira
in late March and April, it traded fairly narrowly
against the mark and other currencies in the EC
snake. The Federal Reserve therefore intervened
only once in late March, selling $9.9 million
of marks from balances. Otherwise, taking ad­
vantage of the dollar’s basic buoyancy on quiet
days, the Federal Reserve acquired currencies
needed to repay swap debt. The System thus
purchased $119.6 million of marks in the market
and from correspondents, liquidating a further
$27.5 million of commitments in that currency,
and bought sufficient guilders in the market to
liquidate in full the $19.6 million swap on the
Netherlands Bank incurred in February.
In summarizing operations over Febru­
ary-April, the Federal Reserve sold in the mar­

492

Federal Reserve Bulletin □ June 1976

ket a total of $270.4 million equivalent of
foreign currencies. In marks, System sales
amounted to $250.8 million, with $133.9 mil­
lion financed by drawings under the swap ar­
rangement with the German Federal Bank and
$116.9 million from balances. Mark purchases
totaled $173.7 million equivalent, of which
$53.9 million was used to liquidate swap draw­
ings on the German Federal Bank, leaving $80
million equivalent outstanding at the end of the
period. The System also sold $19.6 million
equivalent of Netherlands guilders financed by
a swap drawing, which was subsequently repaid
with balances acquired in the market.
In addition, the Federal Reserve made further
progress in repaying swap debt outstanding
since August 1971. Throughout the period the

TABLE 1
F ederal R eserve S ystem
draw ings and repaym ents
under reciprocal currency arrangem ents
In m illions o f dollars equivalent

Transactions w ith—

National Bank o f B elgium

System
swap
com m it­
ments
Jan. 3 1,
1976
2 5 2 .9

D raw ings,
or re­
paym ents
(-)
Feb. 1 Apr. 3 0,
1976

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

5 6 7 .2

- 8 1 .3
J 133.91
1 - 5 3.9J
J
19.61
1 - 19.6J
M 6 0 0 .Ol
•
\ - 2 0 .0 j

Bank for International Settle­
m ents (S w iss francs) ..

6 0 0 .0

1 -6 0 0 .0

German Federal Bank ..........
Netherlands Bank ....................
S w iss National Bank

T o ta l

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

1 ,4 2 0 .1

J 753.51
\ -7 7 4 .8 j

System
swap
com m it­
m ents
Apr. 30,
1976
171.7
8 0 .0

1 ,1 4 7 .2

1 ,3 9 8 .8

C o n so lid a tio n of S w iss franc swap debt.
N o t e .— D iscrepancies in totals are due to rounding.




TABLE 2
D raw ings and repaym ents
on Federal R eserve S ystem under
reciprocal currency arrangem ents
In m illions of dollars

Banks draw ing on
System

Bank of Italy ...........................
Bank of M exico .....................
T o ta l

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

D raw ings
on
System
Jan. 31,
1976

D raw ings,
or re­
paym ents D raw ings
on
(~ )
Feb. 1 System
Apr. 30, Apr. 30 ,
1976
1976

2 5 0 .0

2 5 0 .0
3 6 0 .0

5 0 0 .0
3 6 0 .0

2 5 0 .0

6 1 0 .0

8 6 0 .0

System continued to buy Belgian francs in the
market and from correspondents, purchasing
$74.9 million equivalent. These acquisitions,
together with some existing balances, were used
to repay $81.3 million equivalent of the draw­
ings on the National Bank of Belgium, leaving
$171.7 million outstanding at the end of April.
The Federal Reserve in February transferred its
$600 million of Swiss franc swap debt from the
Bank for International Settlements to the Swiss
National Bank. During the period, the System
purchased $33.2 million equivalent of Swiss
francs from correspondents and liquidated $20
million of its debt with the Swiss central bank.
Swiss franc commitments outstanding at the end
of April totaled $1,147.2 million.
Also during the period, the Bank of Italy,
after having resumed market operations in early
March, drew $250 million on its swap line with
the Federal Reserve, raising total drawings to
$500 million. In addition, in early April, the
Bank of Mexico drew the full $360 million
available under its swap line with the Federal
Reserve.
□

493

The Independence of
the Federal Reserve System
It is a pleasure to be here on this beautiful
campus and to join the audience in honoring
the graduating class of Bryant College.
In earlier and calmer times, it was customary
for a commencement orator to address the prin­
ciples of life that he thought would be most
helpful to members of the graduating class.
Such pronouncements are less fitting in our
turbulent age, which has sharply narrowed the
gap in knowledge—if not also in wisdom—that
once separated the generations.
Yet each of us, and here your elders may
have some advantage, has had opportunity to
reflect with more than ordinary care on his own
range of responsibilities. I therefore want to
share with you today a few thoughts about the
Federal Reserve System, which serves as our
Nation’s authority for controlling the supply of
money and credit.
Industrial nations, including our own, nowa­
days rely heavily on monetary policy to promote
expansion of production and employment, to
limit any decline that may occur in over-all
economic activity, or to blunt the forces of
inflation. There are two major reasons for the
emphasis on monetary policy. In the first place,
manipulation of governmental expenditures has
proved to be a rather clumsy device for dealing
with rapidly changing economic developments.
Secondly, the process of reaching a consensus
on needed tax changes usually turns out to be
complex and time consuming. Experience has
thus taught us that alterations of fiscal policy,
once undertaken, frequently have a large part
of their economic effect too late to be of much

N ote .— Address by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve System, at
the One Hundred and Thirteenth Commencement Exer­
cises of Bryant College, Smithfield, Rhode Island, May

22, 1976.




value in moderating fluctuations in business
activity.
Even when the economy is booming, legisla­
tures are rarely willing to increase tax rates or
to restrain the rising curve of governmental
expenditures. Such reluctance also limits the
discretionary use of fiscal measures to counter
the forces of recession that develop from time
to time in a free enterprise economy. Once
reduced, tax rates cannot easily be increased
again, and new expenditure programs to stimu­
late a lagging economy all too often are the
source of a new inflationary problem later on.
Fortunately, monetary policy is relatively free
of these shortcomings. Flexibility is the great
virtue of instruments of monetary and credit
policy. Changes in the course of monetary pol­
icy can be made promptly and—if need be—
frequently. Under our scheme of governmental
organization, the Federal Reserve can make the
hard decisions that might be avoided by deci­
sion-makers subject to the day-to-day pressures
of political life. And experience indicates that
the effects of substantial changes in the supply
of money and credit are rather speedily trans­
mitted through financial markets to the work­
shops of the economy—that is, our factories,
mines, construction yards, and the range of
service establishments.
The founders of the Federal Reserve System
were well aware of the dangers that would
inhere in the creation of a monetary authority
subservient to the executive branch of Govern­
ment—and thus subject to political manipu­
lation. Senator Nelson Aldrich, Chairman of the
National Monetary Commission, whose investi­
gations of central banking laid the basis for
establishing the Federal Reserve System, was
deeply impressed with the need for a strong
monetary authority capable of exercising disci­
pline over the financial affairs of a nation. Carter

494

Federal Reserve Bulletin □ June 1976

Glass, Chairman of the House Banking and
Currency Committee when the Federal Reserve
Act was passed in 1913, reported that the Com­
mittee regarded the Federal Reserve Board “ as
a distinctly nonpartisan organization whose
functions are to be wholly divorced from poli­
tics.” That view was fully shared by President
Woodrow Wilson, who was extremely careful
to avoid any suggestion of interference with the
newly created monetary authority, thereby set­
ting a precedent that has usually been followed
by succeeding Presidents.
The concept of independence of the monetary
authority within the structure of Government is
congenial to the basic principles of our Consti­
tution. As Alexander Hamilton put it in one of
the Federalist Papers, our system of Govern­
ment is based on the precept that partitions
between the various branches of Government
“ought to be so contrived as to render the one
independent of the other.” Such a division of
power, according to another of the Federalist
Papers, is “essential to the preservation of lib­
erty.”
The principle of independence of the mone­
tary authority within the structure of our Federal
Government was embodied in the original Fed­
eral Reserve Act in several ways. First, indi­
viduals appointed to the Federal Reserve Board
by the President were to have 10-year terms,
and they could be removed from office only for
cause. A President could not, therefore, remove
a Board Member from office simply because he
disagreed with his views, and the term of office
was long enough to minimize the threat of
covert political pressure on Board Members.
Moreover, the law provided for staggered terms
in order to avoid Presidential “packing” of the
monetary authority.
Second, the newly created Federal Reserve
Board was required to report on, and to account
for, its actions to the legislative branch of Gov­
ernment, not to the Administration.
Third, the operations of the Federal Reserve
System were to be financed from its own internal
sources, and thus protected from the political
pressures that may be exercised through the
congressional appropriations process.
Fourth, power was to be diffused within the




Federal Reserve System, so that the interests
of borrowers, lenders, and the general public
were to be recognized and blended in the new
regional Federal Reserve Banks.
In the years that followed creation of the
Federal Reserve System, experience—particu­
larly during the Great Depression—suggested
that the degree of independence assigned to the
monetary authority was insufficient. The Bank­
ing Acts of 1933 and 1935 sought to rectify
this and also other defects in the financial struc­
ture.
Under the new legislation, the Secretary of
the Treasury and the Comptroller of the Cur­
rency, who originally were ex officio members
of the Board, were relieved of this respon­
sibility. The terms of the members of the Board
were lengthened from 10 years to 12 years, and
then to 14 years, to insulate the Board still more
from political pressures. A new agency—the
Federal Open Market Committee, including
representatives of the regional Federal Reserve
Banks as well as members of the Board located
in Washington—was established to conduct
open market operations, which by the early
1930’s had come to play a major role in imple­
menting monetary policy. Moreover, the prin­
ciple was reaffirmed that funds used by the
Federal Reserve to finance its operations were
not to be construed as Government funds or as
appropriated monies. All of these legislative
changes strengthened the ability of the Federal
Reserve System to resist efforts by the Treasury,
or the White House, or any other agency in the
executive branch to influence unduly the course
of monetary and credit policy.
Senator Carter Glass once stated that intelli­
gent and fearless performance of the functions
of the monetary authority “ involves as much
of sanctity and of consequence to the American
people as a like discharge of duty by the Su­
preme Court of the United States.” We at the
Federal Reserve have in fact sought to model
our conduct on that of the Supreme Court.
In the exercise of our adjudicatory respon­
sibilities, the members of the Board scrupu­
lously avoid any contact with interested parties.
In our deliberations on monetary and credit
policies, not the slightest consideration is given

The Independence of the Federal Reserve System

to questions of political partisanship. Every
member of the Board, and every member of the
Federal Open Market Committee, weighs the
issues of monetary and credit policy solely from
the viewpoint of the public interest and the
general welfare. My colleagues at the Federal
Reserve are highly qualified individuals pos­
sessing a diversity of skills essential to the
management of the Nation’s financial affairs.
They live and work under a Spartan code that
avoids political entanglement, conflicts of inter­
est, or even the appearance of such conflicts.
At the same time, the members of the Board,
particularly its Chairman, maintain close contact
with members of the executive branch and the
Congress in order to assure that the activities
of the Federal Reserve are appropriately coordi­
nated with what other branches of Government
are doing.
Our system of monetary management, I be­
lieve, is thus working in the way the founders
of the Federal Reserve intended. Nonetheless,
there are now, as there have been over the years,
some well-meaning individuals in our country
who believe that the authority of the Federal
Reserve to make decisions about the course of
monetary policy should be circumscribed. The
specific proposals that have been put forth over
the years differ greatly, but they usually have
had one feature in common—namely, control
by the executive branch of Government over the
monetary authority.
A move in this direction would be unwise
and even dangerous. It is encouraging to find
that, despite occasional outbursts of temper, a
majority of the Congress share this belief. I
doubt that the American people would want to
see the power to create money lodged in the
presidency—which may mean that it would in
fact be exercised by political aides in the White
House. Such a step would create a potential for
political mischief or abuse on a larger scale than
we have yet seen. Certainly, if the spending
propensities of Federal officials were given freer
rein, the inflationary tendency that has weak­
ened our economy over much of the past
decade would in all likelihood be aggravated.
The need for a strong monetary authority to
discipline the inflationary tendency inherent in




495

modern economies is evident from the historical
experience of the nations around the world.
Among the major industrial countries, West
Germany and the United States appear to have
achieved the greatest success—albeit woefully
insufficient success—in resisting inflationary
pressures in the period since World War II. It
is no accident that both countries have strong
central banks. In some other countries, where
the monetary authority is dominated by the
executive or the legislature, inflationary finan­
cial policies have brought economic chaos and
even extinguished political freedom.
It is, of course, essential that the monetary
authority observe the spirit as well as the letter
of our laws. In our democratic society the inde­
pendence of a governmental agency can never
be absolute. The Federal Reserve System is thus
subject not only to the provisions of the Federal
Reserve Act but also to the Employment Act
and numerous other statutes. The original design
of the Federal Reserve System recognized this
duty by requiring the Federal Reserve to account
for its stewardship to the Congress. The over­
sight responsibilities of the Congress for the
conduct of the monetary authority do not, how­
ever, require congressional involvement in the
details of implementing monetary policy. The
technical complexities of adjusting monetary or
credit instruments to the needs of a modern
industrial economy are far too great to be dealt
with by a large deliberative body. At the same
time, there is a significant role for the Congress
in setting forth the economic and financial ob­
jectives that the monetary authority is expected
to observe and honor.
Over the past year, the Congress has been
exercising its vital oversight function through
a new and more systematic procedure, spelled
out in House Concurrent Resolution No. 133.
That resolution requires the Federal Reserve to
report to the Congress at quarterly intervals on
the course of monetary policy and to project
ranges of growth in the major monetary and
credit aggregates for the year ahead.
We at the Federal Reserve regard the dialogue
between the monetary authority and the Con­
gress stimulated by the Concurrent Resolution
as constructive. It has given the Congress a

496

Federal Reserve Bulletin □ June 1976

better opportunity to express its views on the
appropriateness of our actions. It has also pro­
vided us at the Federal Reserve with an oppor­
tunity to explain fully the reasons for our ac­
tions, and to communicate to the Congress and
to the public at large our firm intention to adhere
to a course of monetary policy that is consistent
not only with continued economic expansion at
a satisfactory rate but also with further gradual
unwinding of inflationary tendencies.
Such a course of policy, I believe, is the only
option open to us if we as a Nation are to have
any hope of regaining price stability and main­
taining a robust economy. Our country is pass­
ing through a fateful stage in its history. Eco­
nomic, social, and political trends of the past




several decades have released powerful forces
of inflation that threaten the vitality of our
Nation’s economy and also the freedom of our
people.
Defeating the forces of inflation requires de­
termined action. Greater discipline is needed in
our fiscal affairs, and structural reforms are
required to improve the functioning of our labor
and product markets. But all such reforms
would come to naught in the absence of a
prudent course of monetary policy. At this crit­
ical time in our history, any interference with
the ability of the Federal Reserve to stick to
a moderate rate of monetary expansion could
have grave consequences for the economic and
political future of our country.
□

497

Membership of the Board of Governors
of the Federal Reserve System, 1913-76
A P P O IN T IV E M E M B E R S 1
N am e

Federal R eserve
district

D ate of initial
oath of office

Charles S. Hamlin ............. Boston ................ Aug. 10,

1914

do.
do.
do.
do.

Paul M. Warburg ...............N ew York . ..
Frederic A. Delano ........... Chicago ...........
W. P. G. Harding ............. Atlanta ............
Adolph C. Miller ...............San Francisco

Oct. 26,
N ov. 10,
June 8,

1918
1919
1920

David C. W ills ...................Cleveland .......... Sept. 29,
John R. M itchell ...............Minneapolis ___ May 12,
Mar. 14,
Daniel R. Crissinger ....... Cleveland
May
1,
May 14,

1920
1921
1923
1923
1923

Wayland W. M agee ......... Kansas C
Eugene R. Black ...............Atlanta .
M. S. Szymczak ...............Chicago

Oct.
Sept.
May
May
June

do.
4,
16,
18,
19,
14,

1927
1930
1931
1933
1933

J. J. Thomas ...................... Kansas City ..
Marriner S. Eccles ........... San Francisco

do.
Nov. 15,

1934

Albert Strauss .................... N ew York
Henry A. Moehlenpah . .. Chicago ..
Edmund Platt ...................... N ew York

Edward H. Cunningham ..C h icago __
R oy A. Young ...................Minneapolis

Joseph A. Broderick ....... N ew York .........Feb.
3,
John K. M cKee .................Cleveland ...................... do.
Ronald Ransom .................. Atlanta ............................ do.
Ralph W . Morrison

Rudolph M. Evans .......
James K. Vardaman, Jr.
Edward L.
Wm. McC. Martin, Jr.

For notes see page 4 9 8 .




1936

Dallas ............... Feb. 10,
Richmond ....... June 25,

1936
1936

Mar.
N ew York
Mar.
Richmond ,
St. Louis ......... Apr.
Boston ............. , Feb.
Philadelphia . .. . Apr.
Atlanta ............. Sept.
M inneapolis , .
Apr.
N ew York

30,
14,
4,
14,
15,
1,
d o ..
2,

1938
1942
1946
1947
1948
1950

San Francisco ..Feb.

18,

1952

Kansas City ...

do.

1951

O ther dates and information relating
to m embership2
Reappointed in 1916 and 1926. Served
until Feb. 3, 1936.3
Term expired Aug. 9, 1918.
Resigned July 21, 1918.
Term expired Aug. 9 , 1922.
Reappointed in 1924. Reappointed in
1934 from the Richmond District.
Served until Feb. 3, 1936.3
Resigned Mar. 15, 1920.
Term expired Aug. 9, 1920.
Reappointed in 1928. Resigned Sept.
14, 1930.
Term expired Mar. 4 , 1921.
Resigned May 12, 1923.
Died Mar. 22, 1923.
Resigned Sept. 15, 1927.
Reappointed in 1931. Served until Feb.
3,
1936.3
Died N ov. 28, 1930.
Resigned Aug. 31, 1930.
Resigned May 10, 1933.
Term expired Jan. 24, 1933.
Resigned Aug. 15, 1934.
Reappointed in 1936 and 1948. R e­
signed May 31, 1961.
Served until Feb. 10, 1936.3
Reappointed in 1936, 1940, and 1944.
Resigned July 14, 1951.
Resigned Sept. 30, 1937.
Served until Apr. 4 , 1946.3
R ea p p o in ted in 1 9 4 2 . D ie d D e c . 2 ,
1947.
Resigned July 9, 1936.
Reappointed in 1940. Resigned Apr.
15, 1941.
Served until Sept. 1, 1950.3
Served until Aug. 13, 1954.3
Resigned N ov. 30, 1958.
Died D ec. 4 , 1949.
Resigned Mar. 31, 1951.
Resigned Jan. 31, 1952.
Resigned June 30, 1952.
Reappointed for term beginning Feb. 1,
1956. Term expired Jan. 31, 1970.
Reappointed in 1958. Resigned Feb. 28,
1965.
Reappointed for term beginning Feb. 1,
1964. Resigned Apr. 30, 1973.

498

Federal Reserve Bulletin □ June 1976

N am e

Federal R eserve
district

13,
12,
17,
25,

1954
1954
1955
1959

. Chicago ........... . Aug. 31,

1961

Richmond ....... .. N ov. 29,
San Francisco . . Apr. 30,
. Philadelphia ... . Mar. 9,
. Dallas ............... May
1,

1963
1965
1966
1967

. N ew York __ . Jan.
. St. Louis ......... . Jan.
San Francisco . . June
. Kansas City ...,. June
. Boston ............. Mar.
. Dallas ............... . Oct.
. Atlanta ............. July
. Richmond ....... . Jan.
. Philadelphia ..... Feb.
. Minneapolis . .. . June

1970
1972
1972
1973
1974
1974
1975
1976
1976
1976

Minneapolis . ..
. Philadelphia . ..
.D allas ...............
. Atlanta .............

Sherman J.
Andrew F. !
W illiam W.

Philip E. Coldwell
Philip C. Jackson, Jr.

CHAIRMEN4
Charles S. Hamlin ...Aug.
W. P. G. Harding ...Aug.
Daniel R. Crissinger May
Roy A. Young ........ Oct.
Eugene Meyer .......... Sept.
Eugene R. Black __ May
Marriner S. Eccles ...N o v .
Thomas B. McCabe. .Apr.
Wm. McC. Martin, Jr. Apr.
Arthur F. Burns .......Feb.

D ate of initial
oath o f office

10, 1914-Aug.
10, 1916-Aug.
1,1923-Sept.
4, 1927-Aug.
16,1930-M ay
19, 1933-Aug.
15, 1934-Jan.
15,1948-Mar.
2, 1951-Jan.
1, 1970-

. Aug.
. Aug.
. Mar.
Mar.

9,1916.
9,1922.
15,1927.
31,1930.
10,1933.
15,1934.
31,1948.
31,1951.
31,1970.

31,
4,
5,
11,
8,
29,
14,
5,
13,
1,

O ther dates and information relating
to m em bership2
D ied Oct. 21, 1954.
Served through Feb. 28, 1966.
Retired Apr. 30, 1967.
Reappointed in 1960. Resigned Sept.
18, 1963.
Reappointed for term beginning Feb. 1,
1962. Served until Feb. 13, 1976.3
Served until Mar. 8, 1974.3
Served through May 31, 1972.
Resigned Aug. 31, 1974.
Reappointed for term beginning Feb. 1,
1968. Resigned N ov. 15, 1971.
Term began Feb. 1, 1970.
Resigned June 1, 1975.
Resigned Jan. 2, 1976.
Resigned May 15, 1976.

VICE CHAIRMEN4
Frederic A. Delano... Aug.
Paul M. Warburg.......Aug.
Albert Strauss .......... Oct.
Edmund Platt ............July
J. J. Thomas ............Aug.
Ronald Ransom ........ Aug.
C. Canby Balderston Mar.
J. L. Robertson ........ Mar.
George W. Mitchell. .May
Stephen S. Gardner ..Feb.

10,
10,
26,
23,
21,
6,
11,
1,
1,
13,

1914-Aug.
1916-Aug.
1918-Mar.
1920-Sept.
1934-Feb.
1936-Dec.
1955-Feb.
1966-Apr.
1973-Feb.
1976-

9,
9,
15,
14,
10,
2,
28,
30,
13,

1916
1918
1920
1930
1936
1947
1966
1973
1976

COMPTROLLERS OF THE CURRENCY
John Skelton Williams Feb.
2,1914-M ar. 2,
Daniel R. Crissinger..Mar. 17, 1921-Apr. 30,
Henry M. Dawes ....M ay
1,1923-D ec. 17,
Joseph W. McIntosh..Dec. 20, 1924-Nov. 20,
J. W. Pole .................Nov. 21, 1928-Sept. 20,
J. F. T. O’Connor ..May 11, 1933-Feb. 1,

1921
1923
1924
1928
1932
1936

E X -O F F IC IO M E M B E R S 1
SECRETARIES OF THE
W. G. M cA doo........ Dec.
Carter Glass ............. Dec.
David F. Houston ...Feb.
Andrew W. Mellon ..Mar.
Ogden L. Mills ........ Feb.
William H. Woodin...Mar.
Henry Morgenthau, Jr.Jan.

TREASURY
23, 1913-Dec. 15, 1918
16, 1918-Feb. 1, 1920
2,1920-M ar. 3, 1921
4, 1921-Feb. 12, 1932
12, 1932-Mar.4, 1933
4,1933-D ec. 31, 1933
1, 1934-Feb. 1, 1936

1Under the provisions o f the original Federal R eserve A ct the
Federal R eserve Board w as com posed o f seven m em bers, in­
cluding five appointive m em bers, the Secretary o f the Treasury,
w ho w as ex-officio chairman o f the Board, and the Comptroller
o f the Currency. The original term o f office w as 10 years, and
the five original appointive mem bers had terms o f 2 , 4 , 6 , 8,
and 10 years, respectively. In 1922 the number o f appointive
mem bers w as increased to six , and in 1933 the term o f office
w as increased to 12 years. The Banking A ct o f 1935, approved
A ug. 2 3 , 1935, changed the nam e o f the Federal R eserve Board
to the Board o f Governors o f the Federal R eserve System and
provided that the Board should be com posed o f seven appointive
mem bers; that the Secretary o f the Treasury and the Comptroller




o f the Currency should continue to serve as m em bers until Feb.
1, 1936; that the appointive m em bers in office on the date of
that A ct should continue to serve until Feb. 1, 1936, or until
their successors w ere appointed and had qualified; and that
thereafter the terms of m em bers should be 14 years and that the
designation of Chairman and V ice Chairman of the Board should
be for a term of 4 years.
2D ate after words “ R esign ed ” and “ R etired” denotes final
day of service.
3Successor took office on this date.
4 Chairman and V ice Chairman w ere designated Governor and
V ice Governor before A ug. 2 3 , 1935.

499

Statements to Congress
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, May 20, 1976.

I appreciate the opportunity to present the views
of the Board of Governors of the Federal Re­
serve System on S. 50, the “Full Employment
and Balanced Growth Act of 1976.” This bill
would amend the Employment Act of 1946,
which requires the Federal Government to uti­
lize all of its resources in order to foster condi­
tions that “promote maximum employment,
production and purchasing power. ” The Federal
Reserve Board fully recognizes its responsibility
under the 1946 Act and has reported regularly
to the Congress on its efforts to further the
objectives of the law. The central question fac­
ing the Congress as it considers S. 50 is whether
or not the proposed amendments will help to
advance the goals of the original Act. I am sorry
to say that we do not believe they will. The
bill is both too rigid and too inflationary and,
on balance, would likely prove to be inconsist­
ent with the long-term economic well-being of
the Nation.
Unemployment has been a very serious prob­
lem recently in the United States, as in many
other countries. But this condition is mainly a
product of the recession, which in turn was
caused by the excesses and imbalances that had
developed earlier in the economy. With eco­
nomic recovery, good progress is being made
in restoring jobs, and the unemployment rate
has dropped IV2 percentage points over the past
year.
Substantial further progress is necessary in
creating new job opportunities, thereby reducing
unemployment and providing for the absorption
of a steadily growing labor force. This must be
a primary objective of governmental economic
policy. Also of crucial importance, however, is



that we avoid recreating the conditions that led
to the past recession, and could do so again.
This means that continued attention must be
directed to questions of economic structure and
balance, including avoidance of the extremely
injurious effects of rapid inflation.
We at the Board are gravely concerned that
the net effect of S. 50 would be to add substan­
tially to the inflationary bias already evident in
the performance of the Nation’s economy,
without generating a lasting increase in produc­
tive employment opportunities. The events of
recent years have demonstrated again that rapid
inflation can undermine prosperity and exacer­
bate unemployment. The inflation of 1973 and
1974, with its adverse effects on real incomes,
attitudes, and the quality of economic decision­
making, was a major force contributing to the
subsequent deep economic recession. It should
be clear from this experience that such condi­
tions exact their toll in terms of economic ineq­
uity and social discontent. The American people
have become painfully aware of the costs of
inflation and of the need to control it.
It is of critical importance, we believe, that
the containment of inflation be recognized ex­
plicitly as a national objective inseparable from
the goals of maximum employment and pro­
duction. Indeed, a principal flaw in the 1946
Act is its failure to identify clearly price stability
as a long-run economic goal. S. 50 shares and
extends this shortcoming. In the Board’s judg­
ment, the anti-inflation provisions of the bill are
too weak and too vague to be satisfactory.
Nowhere are there workable safeguards against
inflation. Instead, the bill has many provisions
that would contribute further to conditions and
practices that would likely result in an intensifi­
cation of upward price pressures.
Certainly, one inflationary feature is the bill’s
objective of 3 per cent adult unemployment to
be reached and sustained within 4 years follow­

500

Federal Reserve Bulletin □ June 1976

ing enactment. This is a most arbitrary target.
Historically, a 3 per cent adult unemployment
rate is very low. Over the past 30 years, the
jobless rate for those 18 and over has been in
the neighborhood of 3 per cent only during
1952-53 and 1968-69, years in which the num­
ber of men in the Armed Forces was more than
Vh million—half again as high as the present
level. Moreover, both of these periods of
heightened economic activity were charac­
terized by demand-pull inflationary pressures
and were followed eventually by major reces­
sions. Thus, our postwar experience has been
that achievement of 3 per cent unemployment
is likely to be accompanied by substantial up­
ward price pressures and followed by economic
decline, rather than by sustained full employ­
ment.
In addition, the setting of a rigid unemploy­
ment goal ignores the dynamic character of the
American labor force. The jobless rate of a
decade or so ago does not have the same mean­
ing as the current rate, principally because of
the shifting composition of the labor force and
the more liberal nature of our Federal incomesupport programs. Today’s labor force has rela­
tively more new entrants and re-entrants—
chiefly young persons and married women—
than it did then. These groups typically have
higher rates of joblessness as they search—often
intermittently and through trial and error—for
a satisfactory job. It is reasonable to think that
this has biased the official jobless rate in an
upward direction.
Indeed, the fact that the bill sets forth an
unemployment target while making no mention
of a comparable specific objective with regard
to inflation is illustrative of its uneven treatment
of these two economic problems. I would not
urge that any fixed target for short-run price
behavior be set; the meaning of an inflation rate,
in its own way, can be as changeable as the
meaning of a jobless rate. My purpose simply
is to point out the bias of S. 50 in favor of
one important national goal at the expense of
another.
Some of the countercyclical and structural
programs of S. 50 are likely to introduce im­
portant new elements of inflationary bias into
our economic system. A significant problem of



many past stabilization programs has been tim­
ing. Although the bill calls for the establishment
of triggers and allocation formulas, I believe it
is still unlikely that we would avoid the pitfall
of applying the aid too late in an economic
downturn and continuing it too far into a recov­
ery, when the effect on price pressures can be
most pronounced. Experience has shown that
such defects in timing have been particularly
marked in programs of accelerated public
works—one of the bill’s recommended options.
The inflationary implications of some of the
other suggested programs—including those to
stabilize State and local government budgets
over the cycle and to extend unemployment
insurance—also require careful evaluation.
The major inflationary thrust from the coun­
tercyclical programs, however, would come
from the specific provisions of this bill that make
the Federal Government the employer of last
resort. While worthy in principle, the program
as specified in S. 50 has a critical flaw. It
requires the payment of prevailing wages, de­
fined where applicable as the highest of the
following: the Federal minimum wage, the State
or local minimum wage, the prevailing wage
in State or local government, or the prevailing
wage in construction as specified by the DavisBacon Act.
This program—and these wages—would
have profound inflationary consequences for
several reasons. First, the program would result
in substantial cost-push pressures. Private labor
markets would be tightened, and this would
cause private employers to bid up wage rates
in order to obtain and retain workers. Also, by
making public jobs available at attractive wages
as a matter of right, the program would encour­
age workers now employed in the private sector
to press for even larger wage gains, or to
transfer to governmental jobs. As an example,
any construction project under this bill would
pay the going union rate; but since a large
proportion of building in the United States is
nonunion, this wage would be higher than many
construction workers now receive and would
provide an alternative preferable to their existing
jobs.
Second, the employer-of-last-resort program,
as specified, would very likely come to generate

Statements to Congress

significant demand-pull pressures on prices.
Given our national reluctance to raise taxes
sufficiently to cover increases in Government
spending, the financing of the program would
tend to add to the Federal deficit—very sub­
stantially so, at some points in time. In this
fiscal year, for example, the Federal Govern­
ment is spending close to $3 billion to support
some 320,000 public service employment jobs
in State and local government. The program
proposed by S. 50 has the potential of being
many times larger than this. Its attractive wage
provisions would draw not only from the unem­
ployed but also from those working part-time
or at less desirable jobs and from those not
presently in the labor force, including retired
persons, housewives, and students. The upper
bound of potential participation cannot be esti­
mated with any degree of accuracy. But it seems
quite possible that several million jobs might
come to be needed to employ all of those
seeking these positions at the relatively attrac­
tive rates of pay that would be offered. Such
a program might therefore involve $30 billion
or more in outlays at current average pay scales.
I might note also that we have learned from
the existing public service employment pro­
grams that cost offsets in terms of reduced
transfer payments under other programs may not
be so large as is often thought. Only about
one-fourth of public service program enrollees
in 1975 had been receiving unemployment in­
surance or public assistance prior to partici­
pation in the program.
Far and away the most significant defect of
the bill as far as inflation is concerned, however,
results from the limitations it places on the
exercise of monetary and fiscal policy. If I
interpret S. 50 correctly, such policies are to
be directed solely to the achievement of the 3
per cent unemployment goal until this target is
reached. Only when that rate is below 3 per
cent can macro-economic tools be directed in
any degree to the problems of inflation and
economic instability. Instead, these fundamental
techniques of demand management—used
throughout the world in governmental efforts to
combat inflation as well as unemployment—are
to be supplanted in the bill by a series of specific
program initiatives. The list of these substitute



501

measures includes the following: a comprehen­
sive information system to monitor inflationary
trends; programs to encourage greater supplies
of goods, services, and factors of production;
export licensing; establishment of stockpile re­
serves of food and critical materials; encour­
agement to labor and management to raise pro­
ductivity through voluntary action; and propos­
als to increase competition.
Whatever the individual merits of these pro­
grams—and some are worthy of careful consid­
eration—one fact is abundantly clear. These
programs do not constitute an effective policy
of inflation control. We believe that it would
be a most serious mistake to discard the use
of monetary and fiscal policy for stabilization
purposes without first finding some effective
alternative means of constraining inflation on an
enduring basis.
Moreover, the bill’s adoption of a trigger
point with regard to economic goals simply does
not provide a workable basis for employing
accumulated knowledge about the behavior of
the economy. It would not be practicable, in
my view, to focus macro-economic policies
exclusively toward a full employment goal and
then, at a given point, abruptly shift attention
to the containment of inflation. That is analo­
gous to approaching a stoplight at top speed,
and then applying the brakes with equal vigor;
the momentum would be sure to carry one into
the intersection, or the deceleration to send one
through the car’s windshield, or more probably
both. There needs to be the latitude to modulate
and balance policy objectives to changing eco­
nomic circumstances if we are to have any hope
of achieving a lasting economic prosperity.
The changes required by the bill would go
considerably beyond narrowing the options for
modulating macro-economic policy objectives
in accord with perceived needs of the economy.
They would also alter dramatically the features
of the existing process for review and oversight
of the monetary policy function. In this regard,
I would like to direct my comments to two
specific provisions. First, the President is re­
quired to recommend a particular plan for mon­
etary policy and to submit it annually to the
Congress along with his numerical goals for
employment, production, and purchasing

502

Federal Reserve Bulletin □ June 1976

power. Second, within 15 days of the Pres­
ident’s report, the Federal Reserve Board is
required to submit its intended policies for the
coming year to the Congress, indicating the
extent to which its plans support the goals of
S. 50 and providing justification for any varia­
tion from the recommendations that were made
by the President.
The Federal Reserve Board strongly objects
to these proposed new procedures on two
grounds: (1) They would alter the traditional
relationships among the Congress, the Federal
Reserve, and the executive branch in a way that
could well prove detrimental to the economic
well-being of the Nation, and (2) the procedures
specified would seriously impair the current
operational flexibility needed in the formulation
and conduct of monetary policy.
The Federal Reserve Act was carefully drawn
up to specify a relationship between the Con­
gress and the Federal Reserve System that
would serve to insulate the monetary authority
from short-run political pressures. This feature
of the Act stemmed from a well-founded con­
cern that excessive government spending could
be aided and abetted if the executive were
granted the authority to control a nation’s money
supply. It is a fact of economic history that
governments everywhere have come under great
pressure to engage in massive deficit spending,
at one time or another, even though this patently
jeopardizes the longer-run health of the econ­
omy. History also is replete with the inflationary
consequences that have followed when govern­
ments have given in to such temptations and
have then simply run the printing presses in
order to supply the money needed to finance
their deficits.
The need to turn to private financial markets
in order to finance deficit public spending per­
forms an important function. The process of
financing shifts purchasing power from private
savers to the government, thus neutralizing
much of the potential inflationary effect of defi­
cit financing, while the necessity of finding
willing investors imposes a market discipline on
the scale of such deficits. But even in the United
States, where this discipline has largely pre­
vailed, the Federal budget has been in deficit
every year but one since 1960. There is nothing



in this record that suggests that we can relent
in the battle to avoid excessive deficit financing.
But instead, S. 50 proposes to weaken one key
safeguard against inflationary public finance by
introducing the executive branch explicitly and
publicly into the making of monetary policy.
And were the Congress to mandate these new
procedures, it also would significantly dilute its
pre-eminent role in the oversight of the mone­
tary policy process.
Moreover, the proposed procedures for the
planning and evaluation of monetary policy are,
for operational reasons, inferior to those now
in place. Under House Concurrent Resolution
133, the Federal Reserve Board reports on eco­
nomic and financial developments and specifies
its current expectations for a variety of monetary
aggregates on a quarterly schedule, alternately
before the banking committees of the House and
Senate. The great advantage of this reporting
procedure is that it permits the Federal Reserve
the flexibility necessary to adapt monetary pol­
icy to changing economic conditions. The pro­
cedures proposed in S. 50 would curtail such
flexibility.
There are two major changes in the existing
process required by S. 50: (1) Policy planning
is moved from a quarterly to what would effec­
tively be a 12- to 15-month reference period,
and (2) there would appear to be a fixed com­
mitment to longer-term plans for monetary pol­
icy in support of specified numerical national
economic goals. On the basis of experience, the
Board is convinced that these changes would
make the proposed planning and evaluation
process too rigid to be workable. As this com­
mittee is aware, the ability of economists to
forecast economic events for a year or more into
the future with any high degree of reliability
simply does not exist. Two rather notable recent
illustrations of forecasting imprecision come
quickly to mind: the extraordinarily high rates
of inflation that developed in 1973 and 1974
that virtually no one foresaw, and the severity
of the 1974-75 recession, which was also quite
unexpected. In either case, it would have been
a serious error to adhere to outdated plans based
upon economic forecasts that proved to be wide
of the mark.
In addition, the current state of knowledge

Statements to Congress

about the relationship between movements in
the monetary aggregates and real economic ac­
tivity is not nearly so precise as the comments
of some economists would have you believe.
In recent quarters, for example, there appears
to have been a dramatic reduction in the amount
of money needed to accommodate the expansion
in gross national product. Under these circum­
stances, holding to a course of monetary growth
that might have been suggested by historical
money/GNP relationships could have been quite
damaging. Speculative activities would have
been encouraged, thus sowing the seeds for
future economic instability, and the foundation
might well have been laid for a renewal of
intensified inflationary pressures.
Technical and financial innovations, accom­
panied by regulatory changes, undoubtedly have
accounted in part for the slower growth in the
narrowly defined money stock. For example, the
spread of overdraft checking-account credit
privileges, increased use of credit cards to fa­
cilitate transactions, and the introduction of
savings accounts at commercial banks for busi­
ness firms all have tended to encourage greater
economizing in the use of currency and check­
ing-account balances. These effects could not
have been estimated with any accuracy in ad­
vance, however, and in any event, I do not think
that they provide a complete explanation. The
fact is that there is a potential for short-run
volatility in monetary relationships that can
make economic forecasts based on monetary
inputs quite treacherous.
These uncertainties about monetary and eco­
nomic relationships require exceptional vigi­
lance and flexibility by the Federal Reserve, and
serve to point out the need for flexibility as an
attribute of the monetary policy process. Ours
is a complex and dynamic economy ; its linkages
and responses are still imperfectly understood
and probably always will be. Thus, in order to
accomplish the objectives of economic stabili­
zation, the formulation and conduct of monetary
policy need to retain the flexibility to adapt to
unforeseen developments in our economic and
financial system. For these reasons we believe
the provisions of S. 50 with respect to the
monetary policy planning process would serve
to impair the contribution the Federal Reserve



503

can make in helping to achieve our national
economic goals.
Let me turn now to what this bill has to offer
by way of improving the trade-off between
unemployment and inflation.
We have all painfully learned that the unemployment-inflation trade-off—generally thought
to be shaped by our human and material re­
sources, our economic institutions and pro­
cesses, and our social practices and aspira­
tions—has grown distinctly more unfavorable in
recent years. A simple but useful illustration of
this deterioration is the so-called discomfort
index, which adds together the unemployment
rate and the rate of increase in consumer prices.
Last year, that index was 15.6, while a decade
ago it was 6.4 and two decades ago, 4.8.
High unemployment side by side with high
rates of inflation presents the most difficult
problem facing economic policy-makers, not
only in the United States but throughout the
world. The sources of this problem are far from
fully understood, but an important part appears
to be structural in nature and, therefore, rela­
tively immune to monetary and fiscal policy.
A look at the composition of unemployment
figures illustrates some of the structural impedi­
ments in labor markets. Groups experiencing the
greatest barriers—discrimination, marginal
skills, location in depressed areas—have jobless
rates well above the national average, even
when the economy is not in a recession. For
example, in the pre-recession year of 1973,
when the national average unemployment rate
was 4.9 per cent, black joblessness was 8.9 per
cent while 14.5 per cent of all teenagers in the
labor force were unemployed.
The bill properly recognizes the importance
of structural problems and suggests a variety of
programs to alleviate them. There are many
such programs that might prove beneficial, but
I believe that two broad areas deserve special
emphasis. First are programs that would help
to increase competition in product and factor
markets. There is need to reassess the effec­
tiveness of our antitrust legislation—with regard
to both business and labor practices—and the
anticompetitive effects of Federal regulation of
all kinds. We need also to re-examine the costs
and benefits of such Federally mandated pro­

504

Federal Reserve Bulletin □ June 1976

grams as the Davis-Bacon Act, the minimum
wage for teenagers, and extended unemploy­
ment insurance. Second are programs that
would serve to increase over time the employa­
bility of the jobless. We need better and more
imaginative training programs and an improved
labor market information system that would
match job vacancies with available people, per­
haps on a national basis.
Other programs are worthy of consideration.
We should find effective ways to encourage
more investment in productive plant and equip­
ment, through stronger incentives and perhaps
some revisions in the tax laws. We should stress
programs to improve efficiency in both private
and public sectors. The Board would endorse
the principle of zero-base budgeting, which ap­
pears to be contemplated by the feature of S.
50 requiring the review of one-fifth (by dollar
value) of all Federal programs annually.

A new emphasis on structural programs such
as these, together with prudent monetary and
fiscal policies, will provide our best hope for
achieving the goals of the Employment Act of
1946. But the Board believes that S. 50, while
reasserting these goals, would in the end be
counterproductive in the effort to achieve them.
The bill would release a powerful combination
of demand-pull and cost-push pressures on
prices.
As has been demonstrated by the expe­
rience of many other countries—and, to a de­
gree, by our own experience of recent years—
rapid inflation can breed economic instability
and ultimately retard—not promote—the growth
of productive jobs. If we are truly to commit
ourselves to the broad goals of the 1946 Act,
we need programs and policies that achieve a
greater balance among our economic objectives
than is recognized in S. 50.
□

Statement by Stephen S. Gardner, Vice Chair­
man, Board of Governors of the Federal R e­
serve System , before the Committee on Govern­
ment Operations, U.S. Senate, May 24, 1976.

Senator Percy. In acknowledging his letter,
Chairman Burns warmly endorsed the broad and
responsible objectives contained in the proposal
and concurred that the cost of regulation places
heavy burdens on the economy.
I specifically refer to statements in the find­
ings and purposes that “Government economic
regulation all too often has become a burden
rather than a benefit.” There can be little doubt
that regulatory agencies have contributed to
inflation and forced rigidities in our economy
by limiting competition and at times even con­
tributing to “monopolistic and cartel-like mar­
ket patterns contrary to the public interest. ’’ The
charge that regulators have often failed to set
clear priorities and have contributed to excessive
paperwork and delay in the regulatory process
is hard to deny. The conclusion that regulatory
agencies “consistently fail to take consumer and
small business interests adequately into ac­
count” may have been particularly true in years
past, but the Congress and the regulatory agen­
cies are obviously moving to correct this defi­
ciency.
In view of this preface to S. 2812, it seems

It is a pleasure to appear before this committee
on behalf of the Board of Governors of the
Federal Reserve System to present the Board’s
views on Senate bills 2812, 3428, 2258, 2716,
2878, and 2903.
I am sure the committee is aware that the
Federal Reserve Board’s unique responsibility
for monetary policy not only gives rise to
changes in the price and availability of money
and credit but also is implemented through a
modest amount of regulation that affects credit
flows in the economy. But the reorganization
bills are not directed at monetary policy actions,
and it might be well to make this an explicit
exception.
I would like to begin by discussing S. 2812.
The Board agrees with the objectives of this bill
as expressed in the title and with the findings
and purposes of the bill. The proposed legisla­
tion was brought to the Board’s attention by



Statements to Congress

appropriate to point out that in its regulatory
role the Federal Reserve does not set fares or
prices or rates charged to the public. In addition,
in the matter of competition, the Board cannot
take actions that it determines to be anticompet­
itive under the provisions of the Bank Merger
and Bank Holding Company Acts unless these
considerations are outweighed by other public
interest factors of greater merit. In administering
those Acts, the Board does deny applications
on the basis of anticompetitive considerations,
even though such adverse competitive issues are
not of sufficient magnitude to constitute a viola­
tion under antitrust law. Appendix A of my
testimony is a summary of the procedures that
the Board follows in assessing the competitive
impact of bank structural changes.1
The Board has also been charged in recent
years by the Congress with a variety of respon­
sibilities to protect consumer interests. This is
a familiar role since the Board must frequently
work in concert with the Federal Deposit Insur­
ance Corporation and the Comptroller of the
Currency to protect depositors in prospective
bank failures. Appendix B is a digest of the
Board’s regulations and activities related to
consumer protection.
If one compares the title and findings and
purposes stated in both S. 2812 and S. 3428
with the statutes that the depositary institution
regulators are charged with administering and
if one assesses the competitive situation in the
industry being regulated, it seems clear that
much of the present regulation of financial in­
stitutions is entirely consistent with many of the
purposes of the two regulatory reform propos­
als. I do not mean, however, to recommend
exemption of the depositary institution regula­
tors and their processes from such reforms. The
regulation of banks and thrift institutions does
involve considerable paperwork and often
delays the implementation of services that fi­
nancial institutions can offer. In addition, there
is some overlap among Federal agencies in the
regulation of depositories, and regulators fre^ h e appendixes to this statement are available on
request from Publications Services, Division of Admin­
istrative Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.



505

quently have to face conflicting mandates in
trying to carry out their regulatory respon­
sibilities. I could cite the notorious Regulation
Q, which limits the interest paid to small savers
and limits the competition among financial in­
stitutions for the express and equally desirable
purpose of protecting the supply of mortgage
credit.
In other areas, the Congress has frequently
addressed issues that have social merit but con­
flict with other desirable goals. For example,
much financial institution regulation is directed
at protecting the public and maintaining sound
financial institutions. But the Congress has also
expressed concern about the availability of
credit to small business and urban development
and housing that bears a higher-than-normal
degree of risk.
The Board is very impressed with the mount­
ing evidence of serious interest on the part of
the Congress and the administration in mean­
ingful and objective regulatory reform to resolve
the problems of regulation. Having already en­
dorsed the thrust of S. 2812, we also believe
that S. 3428 should be given careful consid­
eration. It is obviously important to include all
interrelated industry regulations in the consid­
eration of each agency reorganization plan as
proposed in the administration bill. This is par­
ticularly true, as you know, because both bills
are concerned with rationalizing conflicting
Government agency directives. We have the
further concern that the time allowed for con­
sideration of each industry or agency review be
sufficient to prevent the sheer size of the project
from affecting the ability of the administration
and the Congress to act judiciously. The initial
date of January 31, 1978, for planned submis­
sion of S. 3428 may be more realistic than the
March 31, 1977 date prescribed in S. 2812.
We are also concerned about the provision
in S. 2812 that invalidates all rules and regula­
tions of an agency covered by a reorganization
plan 15 months after its submission if the Con­
gress has not completed action on that plan in
the meantime. Such a rigid provision may result
in inadequately considered legislation changing
or reconstituting existing agencies, or in a lapse
in regulatory authority that may be needed in
the public interest. We believe that it would be

506

Federal Reserve Bulletin □ June 1976

better not to create a legal framework in which
a regulatory lapse is the forcing mechanism for
action.
On the subject of review of agency regula­
tions, S. 2258, S. 2716, S. 2878, and S. 2903
all contain a provision for congressional veto
of agency regulations. The Board opposes such
a congressional veto. Delegations of authority
to the agencies to administer laws by rules and
regulations have been made by the Congress in
most cases because the subjects involved are of
such a technical or specialized nature that the
Congress has concluded that they should be
governed by an expert body. When the Congress
amended the Bank Holding Company Act in
1970, it rejected the concept that specific hold­
ing company activities permitted should be de­
termined by the Congress and committed this
responsibility to the Board of Governors to be
exercised under a broad legislative standard. We
believe that it would be a mistake to take the
authority for these determinations and compara­
ble actions of other agencies away from the
organizations charged with the day-to-day ad­
ministration of the laws. It would seem prefera­
ble to consider changes in the governing stand­
ards set forth in the substantive law when the
Congress is dissatisfied with agency administra­
tion rather than to provide for new procedures
that could lead to less efficient administration.
Many of the problems that give rise to these
proposals for a congressional veto could be
offset by improved congressional oversight. The
Board has recently proposed to the Senate and
House banking committees a program for con­
gressional oversight of the bank supervision
function under which the Congress would re­
view the supervisory process with more fre­
quency. This proposal envisages providing the
banking committees with information as to
trends of capital, liquidity, earnings, classified
loans, and portfolio losses. The Board believes
that these data and other information about the
bank examination process would provide a fac­
tual basis for the banking committees to evaluate
the effectiveness of bank supervision and regu­
lation.
Similar arrangements for furnishing informa­
tion and analyses could be arranged between
other regulatory agencies and the appropriate



committees of the Congress in order to provide
for continuing and effective oversight.
S.
2878 also provides for the establishment
of an Office of Regulatory Policy Oversight. The
Board believes that it is important for the Con­
gress to give attention to oversight jurisdiction
to avoid duplication of oversight activities and
to establish standards and principles for such
processes. A review of oversight organization
is as appropriate as the proposed review of
regulations.
There is much that can be done to improve
the regulation of financial depositary institu­
tions, but I must point out that this subject has
received significant congressional attention in
the last 2 years. As you know, there have been
recent and detailed hearings and congressional
interest in many phases of financial institution
regulation. The banking committees of the Sen­
ate and the House have both had hearings on
reorganization proposals in 1975 and 1976.
Governors of the Federal Reserve Board have
testified before these committees on proposals
for financial agency reorganization on four sep­
arate occasions between July 1975 and March
1976. Neither committee of the Congress has
agreed to adopt any of the various reorganiza­
tion proposals submitted to them.
In addition, there are a number of current
initiatives germane to the purpose of S. 2878
in other proposed legislation being debated in
the appropriate Senate and House committees.
Further, the financial agencies have made a
number of changes that are addressed to im­
proving regulatory procedures and performance.
Federal Reserve Board initiatives are listed in
Appendix C. The Board has also been monitor­
ing the continuing need for regulations and
report forms. The Board now has under review
an analysis of its regulations by a study group
whose objective was to find areas where simpli­
fication and reduction of regulations could take
place. Appendix D lists changes in Board re­
porting requirements since 1970.
Finally, I would like to comment briefly on
the U.S. banking industry of which the Federal
Reserve is a primary regulator. We have sup­
ported the purposes and objectives of S. 2812
and S. 3428 because we believe that a balanced
and objective assessment of banking and bank

Statements to Congress

507

regulation is in the public interest. In this
process analyses of the competitiveness and
safety of the banking system will inevitably be
made and contrasts can be drawn with the past
and with systems developed in other indus­
trialized nations. I expect that attention will be
focused on the performance of banks and bank
regulators during the extraordinarily difficult
period of 1973-7$. Our recent experience does
give us useful guidelines for improving regula­
tion and assessing the adequacy of the tools

needed by regulators. But if we are to achieve
effective regulatory reforms, it is also important
to achieve a consensus evaluation of the system.
It is our view that through growing liquidity,
improved earnings, and additions to capital, the
banking system remains sound with its compet­
itiveness undiminished. The Board commends
the committee’s initiative in undertaking this
study of these important and complex problems,
and we would be pleased to contribute to the
further work of the committee.
□

Statement by John D. Hawke, Jr., General
Counsel, Board of Governors of the Federal
Reserve System before the Subcommittee on
Commerce, Consumer, and Monetary Affairs of
the Committee on Government Operations, U.S.
House of Representatives, June 9, 1976.

such commercial documents as invoices, bills
of lading, and certificates of insurance.
In connection with exports to certain Middle
Eastern countries, however, it has become cus­
tomary for importers to include requirements in
letters of credit calling for the presentation of
various types of certificates intended to give
effect to the Arab boycott of Israel. For ex­
ample, the importer may require that the ex­
porter certify that the goods are not of Israeli
origin, that the goods are not being shipped in
an Israeli vessel or a vessel that will call at an
Israeli port, or that the exporter itself is not on,
or affiliated with a company on, the Arab boy­
cott list or will otherwise agree to abide by the
terms of the Arab boycott of Israel.
Federal law does not generally prohibit U.S.
banks from issuing or confirming letters of credit
containing such boycott clauses. While the Ex­
port Administration Act of 1969 declares it to
be the policy of the United States to oppose
boycotts against foreign countries friendly to the
United States, the Act does not prohibit do­
mestic concerns engaged in the export trade
from taking action that has the effect of further­
ing such a boycott. In this regard, the Act
merely states that it is U.S. policy to “encour­
age and request” domestic concerns not to take
such action. Regulations of the Department of
Commerce under the Act prohibit all exporters
and related service organizations, including
banks, from taking any action in connection
with an export transaction that has the effect
of furthering or supporting a boycott against a

I am pleased to appear on behalf of the Board
of Governors of the Federal Reserve System to
discuss the limitations of existing laws with
respect to the Board’s ability to deal with the
participation of U.S. banks in foreign boycott
practices.
At the outset, I should state that the only
evidence the Board has of bank participation in
boycott practices relates to the financing of
exports from the United States to Middle East­
ern countries. Specifically, the Board has re­
ceived complaints that certain American banks
have been giving effect to the Arab boycott of
Israel by processing letters of credit containing
boycott provisions. Letters of credit are a con­
ventional means by which an importer arranges
to make a payment in an international business
transaction. In the typical case, an importer will
open a letter of credit through a bank in his
own country, which will then arrange to have
the credit confirmed by a correspondent bank
in the exporter’s country. A letter of credit is
simply an undertaking that the issuing or con­
firming bank will honor a draft presented to it
for payment when the draft is accompanied by
certain documents specified in the letter of credit
itself. In the normal case, these would include



508

Federal Reserve Bulletin □ June 1976

country friendly to the United States when that
practice would have the effect of discriminating
against U.S. citizens or firms on the basis of
race, color, religion, sex, or national origin.
However, as to other boycotts—that is, boycotts
other than those having the prohibited discrim­
inatory effect—the Department’s regulations
simply reiterate the statutory encouragement and
request to domestic concerns not to participate.
On December 12, 1975, the Board of Gover­
nors issued a policy statement dealing with the
participation by member banks in foreign boy­
cott activities. The Board’s statement called the
attention of member banks to the policy of the
United States as set forth in the Export Admin­
istration Act and to the newly adopted regula­
tions of the Department of Commerce under the
Act, and expressed the view that it was inap­
propriate for U.S. banks to give effect to a
boycott against a friendly foreign country. The
Board’s statement made reference to the inclu­
sion of boycott provisions in letters of credit,
and it noted that the agreement by a U.S. bank
to observe such provisions in a letter of credit
could constitute a violation of Federal antitrust
laws or applicable State anti-boycott laws. The
Board’s views were reaffirmed in a clarifying
statement on January 20, 1976.
Following the issuance of these statements,
it was called to the Board’s attention that some
U.S. banks were continuing to process letters
of credit containing boycott clauses, and the
Board was urged to take enforcement action to
terminate that practice. In this connection, the
Board’s legal staff has given consideration to
the extent to which action by the Board might
be authorized under existing law.
The principal enforcement power that the
Board has is its authority under the Financial
Institutions Supervisory Act of 1966 to issue
cease-and-desist orders against State banks that
are members of the Federal Reserve System.
Under the Act such orders may be issued to
remedy violations of law or regulations or un­
safe or unsound banking practices. The Comp­
troller of the Currency and the Federal Deposit
Insurance Corporation have identical powers
with respect to national banks and nonmember
insured banks, respectively. If the involvement
of a U.S. bank in a boycott practice would



constitute a violation of law or regulation by
that bank, I believe that the Supervisory Act
would empower the appropriate banking agency
to institute a cease-and-desist proceeding to ter­
minate and remedy that practice. The ceaseand-desist power could be invoked, therefore,
where a bank took action in furtherance or
support of a boycott against a friendly foreign
country under circumstances in which the effect
was to discriminate against U.S. citizens on the
basis of race, color, religion, sex, or national
origin. For example, such a case might arise
if a bank enforced a provision in a letter of credit
that required the exporter to certify that it had
no officers or directors of the Jewish faith. The
Board has no evidence that banks have engaged
in such prohibited boycott practices, however,
and while our cease-and-desist authority would
empower the Board to take remedial action in
such a case, the violation in issue would relate
to the Commerce Department’s Export Admin­
istration Regulations and not to any present
regulation of the Board. The Congress has, of
course, given the Department of Commerce
principal responsibility for implementing U.S.
policy under the Export Administration Act.
Under the Supervisory Act a cease-and-desist
proceeding could be instituted to remedy an
unsafe or unsound practice by a bank, even
though no violation of law or regulation were
present. Although the participation by a bank
in a boycott might be argued by some to be
an “unsound” practice, this provision of the
Supervisory Act has generally been viewed as
reaching practices that threaten the financial
safety or soundness of the bank itself. Thus,
in the absence of a violation of law or regulation
I do not believe the Supervisory Act would
provide an effective sanction against boycott
practices by banks.
The Legal Division has also considered
whether the Board’s authority under the Federal
Trade Commission Improvement Act to adopt
regulations defining unfair or deceptive trade
practices by banks would afford a remedy. The
Board’s power to define unfair or deceptive
practices is a new one, and its boundaries have
not yet been fully explored. Even if boycott
practices could be considered “unfair” within
the meaning of this Act, it is ques­

Statements to Congress

509

tionable—particularly in light of the fact that
the Congress has given the Department of
Commerce principal responsibility for enforcing
U.S. policy with respect to foreign boycott
activities—whether it would be appropriate for
the Board to use this authority to prohibit boy­
cott practices that the Congress has decided not
to declare unlawful under the Export Adminis­
tration Act.
Finally, our staff has considered the Board’s
authority under the Equal Credit Opportunity
Act amendments of 1976 to adopt regulations
relating to discrimination in credit transactions
on the basis of race, color, religion, or national
origin. Again, I believe this authority would be
of limited utility in reaching boycott practices
that were not otherwise prohibited by law or
regulation. As I have mentioned, the Commerce
Department’s regulations already prohibit banks
from taking any steps to further a foreign boy­
cott where the effect would be to discriminate
against U.S. citizens on the basis of race, color,
religion, or national origin. The Equal Credit
Opportunity Act prohibits such discrimination
against an applicant for credit in any aspect of
a credit transaction. The relevant question
here—and it is a difficult one—is whether the

exporter-beneficiary of a letter of credit can be
considered to be an “ applicant” for credit
within the meaning of the Act. In any event,
even if the Board has authority under the Equal
Credit Opportunity Act to protect exporters in
such transactions, regulations under this Act
would seem to be duplicative of those already
in force at the Department of Commerce under
the Export Administration Act. I have serious
reservations about whether the Board’s legal
staff could find authority under the Equal Credit
Opportunity Act to prohibit the enforcement of
boycott provisions in letters of credit that give
effect to the Arab boycott of Israel but that do
not have the effect of discriminating against
U.S. citizens on the basis of race, religion, or
national origin.
In short, while the Board has ample authority
to take enforcement measures with respect to
banks that engage in boycott activities that vio­
late a clear statutory prohibition, or even a
regulation adopted by another agency of Gov­
ernment, our legal staff has serious doubt about
the Board’s ability to take regulatory or coercive
corrective action with respect to boycott prac­
tices that are not prohibited by law or regula­
tion.
□

Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Domestic Monetary
Policy of the Committee on Banking, Currency,
and Housing, U.S. House of Representatives,
June 10, 1976.

would like to begin with some brief comments
on the monetary policy process, based on my
experience over the years working in this area,
and then I shall be happy to respond to any
questions the members of the committee may
have.
Although economists differ in their theoretical
approaches to the channels through which mon­
etary policy works, there is little or no dis­
agreement in the profession that monetary con­
ditions have a profound impact on the perform­
ance of the economy. One view is that monetary
policy influences economic events primarily by
changing the stock of liquidity—particularly,
the supply of money and near-money substi­
tutes—and thereby the willingness of consumers
and businesses to spend and invest out of these
more, or less, ample balances. Another view

I am pleased to participate in these hearings on
monetary policy and its effects on the economy.
During the past year, aided by the implementa­
tion of House Concurrent Resolution 133, a
constructive dialogue has developed between
the Board of Governors of the Federal Reserve
System and the Congress on the course of mon­
etary policy. I am hopeful that this morning’s
session, which I understand to be exploratory
and educational in nature, will help further our
mutual understanding of the issues involved. I



510

Federal Reserve Bulletin □ June 1976

is that the influence of monetary policy stems
mainly from its effects on the money and capital
markets; by affecting the cost and availability
of credit, policy actions will tend to encourage
more, or less, consumption and investment
based on the use of credit.
In fact, these theoretical approaches are not
contradictory. They both find that an expansive
monetary policy will tend to encourage more
spending while a restrictive policy will tend to
restrain it. But they do approach the process
from different vantage points, and the quantita­
tive measures they suggest we look to in moni­
toring the conduct of monetary policy differ
sharply. The liquidity approach emphasizes the
rates of growth in the various measures of the
money supply—M l9 M2, M3, and still broader
definitions encompassing successively larger
proportions of what might be considered to be
the public’s total stock of liquid financial assets.
The credit approach to monetary policy, on the
other hand, emphasizes changes in the flows of
credit through banks, other financial institutions,
and the securities markets, as well as changes
in the terms—including interest rates—on which
such credit is made available. This difference
in measurement technique, I believe, gives rise
to much of the confusion and disagreement in
the evaluations of current monetary policy that
one often encounters in the press and elsewhere.
The fact is that observed monetary measures,
regardless of current policy intent, also will
always reflect the interaction over time of mon­
etary policy with underlying conditions in the
economy. Output, employment, and prices are
affected directly by powerful forces apart from
monetary policy—such as governmental tax and
spending policies; the attitudes and spending
proclivities of businessmen and consumers; the
wage increases being obtained by labor and the
pricing policies of business firms; the avail­
ability of foodstuffs, energy supplies, and es­
sential industrial raw materials; and economic
conditions and developing trends abroad. In
these circumstances, whether interest rates are
comparatively high or low or whether the de­
mand for credit is strong or weak will depend
on many factors other than the rate at which
the Federal Reserve is providing reserves to the
banking system—the basic policy instrument at



its disposal. Indeed, even the observed pace of
expansion in the various measures of money
supply may reflect short-run variations in the
public’s demand for such balances or longer-run
changes in liquidity preference in response to
technological innovations in financial manage­
ment, the level and trend of interest rates, and
present and prospective rates of inflation.
It is important also to recognize that the
impact of changes in monetary policy on various
aspects of the economy tend to be reflected with
differing time lags. If financial conditions
tighten, for example, the effects are likely to
appear much more promptly in securities market
values—and hence on such wealth-sensitive
variables as consumer purchases of durable
goods—than in business fixed-capital outlays,
which require long lead times from planning to
fruition. Similarly, the effects of a change in
financial conditions will be more pronounced in
markets that are heavily dependent on the use
of credit—such as for housing and other large
investments—than in markets where demand is
financed mainly by current income flows, such
as for consumer soft goods and services. Ulti­
mately, of course, these areas of the economy
too will be affected by induced changes in the
income flows themselves.
There is one further timing aspect that re­
quires especially careful evaluation in the for­
mulation and conduct of monetary policy. As
I have already noted, the economic influence
of monetary conditions—whether measured in
aggregate or financial market terms—will be to
encourage either faster or slower expansion in
spending, depending on whether such condi­
tions are easing or tightening. But this effect
on the nominal gross national product (GNP)
does not distinguish between real activity and
inflation. In my view, a shift in monetary policy
can be expected to affect real activity, as de­
mands for goods and labor tend to be augmented
or restricted, before it reflects itself in the rate
of inflation. This is because it ordinarily takes
some time for business and labor to adjust wage
and price policies to changing market condi­
tions. The time lag involved and the intensity
of the inflationary effect will depend on the
initial state of the economy and the sensitivity
of expectations. But the inflationary effects will

Statements to Congress

sooner or later develop, and this argues strongly
against a policy course that calls for large injec­
tions of liquidity into the economic system as
a temporary panacea. In theory, it might be
possible to withdraw the excess liquidity in
time, before the inflationary forces begin im­
portantly to work. But in practice this will likely
be very difficult—if not impossible—to do.
The complexity of the relationship between
monetary policy and the economy, and the need
to move cautiously in modulating financial con­
ditions as economic circumstances and investor
and saver attitudes change, indicate clearly the
importance of flexibility in the conduct of mon­
etary policy. House Concurrent Resolution 133
fully recognizes this need. Under this resolu­
tion, the Board reports quarterly on economic
and financial developments, and specifies the
current expectations of the Federal Open Market
Committee for the probable growth rate ranges
in a variety of monetary aggregates, alternately
before the House and Senate banking commit­
tees. This procedure is one that permits frequent
re-evaluation, and appropriate adjustments in
current monetary policy aims to the economy’s
changing needs, which I believe to be a highly
desirable attribute. Quarterly accounting for the
stewardship of monetary policy also implicitly
recognizes the difficulty of projecting economic
developments very far into the future with any
high degree of confidence—an assessment with
which, on the basis of experience, I heartily
concur.
In the congressional deliberations leading to
the present wording of House Concurrent Reso­
lution 133, and in further discussions since then,
a recurring issue has been the question of
whether monetary policy intentions should be
specified in terms of interest rates as well as
monetary aggregates. The Resolution does of
course require that the Board specify 12-month
growth ranges for the various monetary aggre­
gates, and it provides ample leeway for adjust­
ment of such ranges as conditions change. In
my view, this approach is far preferable to any
attempt to specify interest rate objectives.
While it is theoretically possible to specify
the course of monetary policy in terms of inter­
est rate levels as well as the monetary aggre­
gates, it must be recognized that interest rates



511

are particularly exposed to the influence of many
variables external to the scope of monetary
policy, and that there is thus a large risk of
specification error. The announcement of inter­
est rate intentions or expectations could lead
borrowers and lenders to believe that the Federal
Reserve could—and in practice would—guar­
antee particular levels of interest rates. But the
System does not have the power to do so, for
interest rates are influenced not only by the
interaction of demands for credit with the avail­
able supply of funds but also by the strength
of the economy and the public’s willingness to
defer current consumption in order to save for
the future. Interest rates are also importantly
affected by the expectations of both borrowers
and lenders about the rate of inflation.
If the Federal Reserve did nevertheless at­
tempt to maintain selected interest rates at some
pre-determined level, the effort could well lead
to inappropriate rates of growth in bank reserves
and the money stock. If interest rates came
under upward pressure because of rising de­
mands for funds, for example, System efforts
to prevent interest rate increases would inevita­
bly generate more rapid monetary expansion,
thereby feeding new inflationary pressures. If,
on the other hand, interest rates came under
downward pressure because of slackening busi­
ness activity and declining demands for funds,
System efforts to prevent the decline in rates
would inevitably retard monetary growth rates
and quite possibly exacerbate the recessionary
problem.
Thus, any serious effort to specify monetary
policy aims in terms of interest rate intentions
or expectations could well prove inconsistent
with stated objectives for growth rates in the
monetary aggregates. Of course, the central
bank might attempt to hold to the interest rate
objectives, regardless of the performance of the
monetary aggregates. But even in this extreme
case the result would very likely be self-defeat­
ing, as lenders and borrowers moved to protect
themselves against the prospect of accelerating
inflation or deepening recession, foreshadowed
by what might be very high or very low mone­
tary growth rates. Needless to say, these effects
would be quite perverse from the standpoint of
economic stabilization.

512

Federal Reserve Bulletin □ June 1976

In closing, I would like to stress that mone­
tary policy alone cannot be expected to deal with
all of the Nation’s economic problems. Fiscal
policy has a powerful influence on the course
of economic activity, and outsized deficits can
and do contribute to inflation. Monopolistic be­
havior with respect to the setting of wages or
prices lies outside the scope of monetary policy
and strongly influences the character of the
inflationary bias also. Restrictive trade prac­
tices, whether imposed by private power or
Government regulation, serve to limit produc­




tivity and raise costs to the same end. It will
require the efforts of all elements of our complex
society if healthy economic growth is to be
sustained, unemployment reduced to appro­
priately low levels, and inflation brought under
control.
Mr. Chairman, at your request, I have tried
to be brief in my treatment of a very complicated
topic. It may be that I have raised more ques­
tions than I have answered. But I will be glad
to respond to questions that committee members
may have.
□

513

Record of Policy Actions
of the Federal Open Market Committee
M E E T IN G H E L D O N A P R IL 2 0 , 1 9 7 6
D o m e s tic P o lic y D ire c tiv e

Preliminary estimates of the Commerce Department indicated that
growth in real output of goods and services had picked up to an
annual rate of 7.5 per cent in the first quarter—from a rate of
5 per cent in the fourth quarter of 1975—and that the rate of increase
in the GNP fixed-weighted price index had slowed substantially.
Staff projections for the remaining quarters of this year suggested
that growth in output would be moderate and that the rise in prices
would be above the relatively low first-quarter pace.
In March retail sales had risen sharply—according to the advance
report of the Commerce Department—reflecting a strong increase
in sales at food stores and widespread gains among other types
of stores. The increase in the first quarter as a whole was substan­
tially larger than that in the fourth quarter of 1975.
Industrial production continued to recover in March, owing
mainly to increases in output of automobiles, some other consumer
goods, business equipment, and durable goods materials. For the
second month in a row, output of all durable goods rose more
than the over-all index of industrial production.
Gains in nonfarm employment were again widespread in March,
and they were sizable in durable goods manufacturing industries,
in trade, and in services and finance. The increase in total employ­
ment exceeded that in the civilian labor force, and the unemploy­
ment rate edged down from 7.6 to 7.5 per cent.
Private housing starts declined moderately in March—following
a sharp rebound in February to the highest level in 2 years—while
permits issued for private housing units remained at about the level
of the preceding 2 months. Outstanding mortgage loan commit­
ments at savings and loan associations had remained strong in
February—the latest month for which data were available—and
downpayment requirements on mortgage loans had been easing
during recent weeks.
New orders for nondefense capital goods rose substantially




514

Federal Reserve Bulletin □ June 1976




further in February, recovering to about the pace of last October
and November. The level of new orders was still relatively low,
however, and the backlog of unfilled orders continued to decline.
Nonresidential construction activity remained depressed.
The index of average hourly earnings for private nonfarm pro­
duction workers rose at a less rapid pace over the first quarter
of 1976 than it had on the average in 1975. In the first quarter
the schedule of labor contract negotiations was light and relatively
few cost-of-living wage adjustments went into effect. In April,
however, a new agreement was reached in one major industry
which—if approved by the union membership—would result in
substantial increases in wages and other benefits over a 3-year
period, including a large increase in wage rates effective April 1.
The wholesale price index of all commodities rose slightly in
March—following 2 months of decline—as a continuing increase
in average prices of industrial commodities was not quite offset
by a further decline in prices of farm products and foods. Over
the first quarter average wholesale prices of farm products, foods,
and fuels declined appreciably, but average wholesale prices of
other commodities rose almost as fast as during the second half
of 1975. In February the rise in the consumer price index had
slowed appreciably further, reflecting additional declines in retail
prices of food and energy items.
The acceleration of growth in real GNP in the first quarter
reflected in large part a shift to accumulation of business invento­
ries. In addition, personal consumption expenditures rose apprecia­
bly. On the other hand, State and local government expenditures
changed little, and net exports of goods and services fell sharply.
Staff projections for the remaining three quarters of 1976 sug­
gested that personal consumption expenditures would expand at
a rate near the average of the past few quarters; that residential
construction and business fixed investment would continue to re­
cover; that State and local government purchases of goods and
services would rise at a relatively slow pace; and that business
inventory accumulation would be substantial.
In recent weeks the average value of the dollar against leading
foreign currencies had been relatively steady; the dollar had appre­
ciated substantially against the British pound and the Italian lira—
which had remained under considerable downward pressure—while

R e c o r d o f P o lic y A c tio n s o f F O M C

it h a d d e p r e c ia te d s o m e w h a t a g a in s t m o s t o th e r m a jo r f o r e ig n
c u rre n c ie s . In F e b ru a ry , a s in J a n u a ry , th e U .S . fo re ig n tra d e
b a la n c e r e g is te r e d a s iz a b le d e fic it, in c o n tr a s t w ith th e la rg e
s u rp lu s e s in a lm o s t a ll m o n th s o f 1 9 7 5 . R e p o r te d n e t o u tflo w s o f
p riv a te c a p ita l re m a in e d m o d e ra te .
T o ta l lo a n s a n d in v e s tm e n ts a t U .S . c o m m e rc ia l b a n k s c o n tin u e d
to e x p a n d in M a r c h , in la rg e p a r t b e c a u s e b a n k s a g a in a d d e d a
s u b s ta n tia l a m o u n t to th e ir h o ld in g s o f T r e a s u r y s e c u ritie s . B u s in e s s
s h o rt-te rm c re d it d e m a n d s re m a in e d w e a k : O u ts ta n d in g b a n k lo a n s
to b u s in e s s e s d e c lin e d fo r th e s e c o n d c o n s e c u tiv e m o n th , a n d th e
o u ts ta n d in g v o lu m e o f c o m m e rc ia l p a p e r is s u e d b y n o n fin a n c ia l
c o rp o ra tio n s a ls o fe ll.
g ro w th in M a rc h — a t a n a n n u a l ra te o f 6 2 p e r c e n t— w a s
little c h a n g e d f r o m th a t in F e b ru a r y . G r o w th in M 2 a n d M 3 a ls o
w a s m o d e r a te in M a r c h , c o m p a re d w ith r e la tiv e ly h ig h ra te s in
th e p re c e d in g 2 m o n th s . A t c o m m e r c ia l b a n k s , in flo w s o f tim e
a n d s a v in g s d e p o s its o th e r th a n n e g o tia b le C D ’s fe ll s u b s ta n tia lly
f r o m th e e x c e p tio n a l p a c e o f J a n u a r y a n d F e b ru a r y . In flo w s to
n o n b a n k th rift in s titu tio n s r e m a in e d s tro n g .
O n th e b a s is o f q u a rte rly -a v e ra g e d a ta , M x g re w a t a n a n n u a l
r a te o f 3 p e r c e n t in th e firs t q u a r te r , c o m p a r e d w ith a r a te o f
2 p e r c e n t in th e f o u rth q u a rte r o f 1 9 7 5 . H o w e v e r, M 2 a n d M 3
g r e w a t r a t e s o f 6 2 a n d 11 p e r c e n t , r e s p e c t i v e l y , i n t h e f i r s t
q u a r te r , c o m p a re d w ith ra te s o f 6 a n d 9 p e r c e n t in th e p re c e d in g
q u a rte r.
S y s te m o p e n m a r k e t o p e ra tio n s s in c e th e M a rc h 1 5 - 1 6 m e e tin g
h a d b e e n g u id e d b y th e C o m m itte e ’s d e c is io n to s e e k 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 itio n s c o n s is te n t w ith m o d e r a te g ro w th in
m o n e ta ry a g g re g a te s o v e r th e p e rio d a h e a d . D a ta th a t b e c a m e
a v a ila b le w e e k b y w e e k d u rin g th e in te r-m e e tin g p e rio d s u g g e s te d
th a t in th e M a r c h - A p r il p e rio d
a n d M 2 w o u ld g ro w a t ra te s
n e a r th e m id p o in ts o f th e r a n g e s th a t h a d b e e n s p e c ifie d b y th e
C o m m itte e . A c c o rd in g ly , S y s te m o p e ra tio n s w e re d ire c te d to w a rd
m a in ta in in g c o n d itio n s o f re s e rv e a v a ila b ility c o n s is te n t w ith a
F e d e ra l fu n d s ra te o f a b o u t 4
p e r c e n t— th e ra te p re v a ilin g a t
th e tim e o f th e M a r c h m e e tin g a n d th e m id p o in t o f th e o p e r a tin g
r a n g e th a t th e C o m m itte e h a d s p e c ifie d f o r th e in te r - m e e tin g p e rio d .
M a r k e t in te r e s t ra te s in g e n e ra l d e c lin e d d u rin g th e in te r - m e e tin g
p e r io d , a s a ttitu d e s a p p a re n tly w e re in flu e n c e d n o t o n ly b y th e

V

Vi




V

Mx

3A

515

516

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6




s ta b ility o f th e F e d e ra l fu n d s ra te b u t a ls o b y in d ic a tio n s o f a
s lo w in g in th e r a te o f in fla tio n a n d b y r e p o rts o f c o n tin u e d s lu g g is h
b u s in e s s d e m a n d s fo r s h o rt-te rm c re d it. In th e s h o rt-te rm a re a , th e
o u ts ta n d in g v o lu m e o f m o n e y m a rk e t in s tru m e n ts w a s r e d u c e d . A t
th e tim e o f th is m e e tin g th e m a r k e t ra te o n 3 - m o n th T r e a s u r y b ills
w a s a b o u t 4 .7 5 p e r c e n t, d o w n fro m a b o u t 4 .9 5 p e r c e n t o n th e
d a y b e fo re th e M a rc h m e e tin g .
I n th e in te rm e d ia te - a n d lo n g e r-te rm a re a , th e d e c lin e in in te re s t
ra te s o c c u rre d e v e n th o u g h in M a rc h th e v o lu m e o f fu n d s ra is e d
b y c o r p o r a tio n s , th e T r e a s u r y , a n d S ta te a n d lo c a l g o v e rn m e n ts
w a s e x c e p tio n a lly la rg e . O ffe rin g s o f n e w c o rp o ra te b o n d s a n d
s to c k s w a s th e s e c o n d h ig h e s t m o n th ly a m o u n t o n re c o rd . In te re s t
ra te s o n n e w c o m m itm e n ts fo r h o m e m o rtg a g e s d e c lin e d s lig h tly
in th e in te r-m e e tin g p e rio d .
T h e T r e a s u r y w a s e x p e c te d to a n n o u n c e th e te r m s o f its m id - M a y
r e f u n d in g o n A p r il 2 8 . O f th e m a tu r in g is s u e s , $ 4 .1 b illio n w e r e
h e ld b y th e p u b lic .
A t th is m e e tin g th e C o m m itte e r e v ie w e d its 1 2 -m o n th ra n g e s
f o r g ro w th in th e m o n e ta ry a g g re g a te s . A t th e J a n u a ry m e e tin g
th e C o m m itte e h a d s p e c ifie d th e fo llo w in g r a n g e s fo r g ro w th o v e r
th e p e rio d fro m th e f o u rth q u a rte r o f 1 9 7 5 to th e fo u rth q u a rte r
o f 1 9 7 6 : M l9 4 2 t o
2 p e r c e n t; M 2 ,
2 to
2 p e r c e n t; a n d
M 3 , 9 to 1 2 p e r c e n t. T h e a s s o c ia te d ra n g e f o r g ro w th in th e b a n k
c re d it p ro x y w a s 6 to 9 p e r c e n t. T h e ra n g e s b e in g c o n s id e re d
a t th is m e e tin g w e r e f o r th e p e r io d f r o m th e firs t q u a r te r o f 1 9 7 6
to th e firs t q u a r te r o f 1 9 7 7 .
D u r in g th e d is c u s s io n o f p o lic y , m a n y m e m b e rs o f th e C o m m it­
te e o b s e rv e d th a t th e e c o n o m ic r e c o v e r y h a d b e e n m a k in g g o o d
p ro g re s s . It w a s n o te d th a t e x p a n s io n in o u tp u t o f g o o d s a n d
s e r v ic e s in th e firs t q u a r te r h a d b e e n m o r e r a p id th a n h a d b e e n
a n tic ip a te d a n d th a t th e e x p a n s io n in a c tiv ity d u rin g th e p e rio d
a h e a d m ig h t w e ll e x c e e d th e p a c e s u g g e s te d b y th e s ta ff p ro je c tio n s .
A t th e s a m e tim e , in fla tio n re m a in e d a p ro b le m , a n d u p w a r d p ric e
p re s s u r e s c o u ld in te n s ify in th e n e a r fu tu re .
I n c o m m e n tin g o n th e lo n g e r-ru n g ro w th r a n g e s , m a n y m e m b e rs
f a v o r e d r e d u c in g th e u p p e r e n d o f th e r a n g e f o r
b y 2p e r c e n ta g e
p o in t, to 7 p e r c e n t. It w a s n o te d th a t th e re c o v e r y in e c o n o m ic
a c tiv ity h a d b e e n u n d e r w a y fo r 1 y e a r a n d th a t th e e n d o f th e
n e w p e rio d fo r th e g ro w th ra n g e s w o u ld fa ll 2 y e a rs a fte r th e

V IV

IV

IOV

Mx V

R e c o r d s o f P o lic y A c tio n s o f F O M C

re c e s s io n tro u g h . M o re o v e r, th e re c o v e ry r e c e n tly h a d g a in e d
s tr e n g th . A c c o r d in g ly , it w a s o b s e r v e d th a t th is m ig h t b e a n
o p p o r tu n e tim e f o r th e C o m m itte e to ta k e a s m a ll s te p to w a r d its
lo n g e r-ra n g e o b je c tiv e o f r e tu rn in g g ro w th in th e m o n e ta ry a g g re ­
g a te s to w a rd ra te s c o n s is te n t w ith g e n e ra l p ric e s ta b ility .
It w a s s tre s s e d d u rin g th e d is c u s s io n th a t th e r a te o f g ro w th in
n e e d e d to a c c o m m o d a te a g o o d e c o n o m ic re c o v e r y h a d b e e n
o v e re s tim a te d e a rlie r: A lth o u g h
1 g ro w th in th e p a s t tw o q u a rte rs
h a d fa lle n s h o rt o f th e lo w e r lim it o f th e ra n g e th a t h a d b e e n
s p e c ifie d b y th e C o m m itte e , it o b v io u s ly h a d b e e n s u ffic ie n t to
a c c o m m o d a t e a s t r o n g r e c o v e r y . I n a n y c a s e ', t h e p r o p o s e d u p p e r
lim it o f 7 p e r c e n t e x c e e d e d a c tu a l g ro w th d u rin g b o th 1 9 7 4 a n d
1975.
S o m e s e n tim e n t w a s e x p re s s e d fo r re d u c in g b o th th e lo w e r a n d
th e u p p e r e n d o f th e ra n g e f o r
b y Vi p e r c e n t a g e p o i n t — o r e v e n
b y 1 p e r c e n ta g e p o in t— w ith a v ie w to g iv in g m o re e m p h a s is to
th e C o m m itte e ’s lo n g e r - r u n o b je c tiv e o f g e n e r a l p ric e s ta b ility . It
w a s a ls o s u g g e s te d th a t it w o u ld b e d e s ira b le to p re s e r v e th e w id th
o f th e r a n g e a d o p te d b y th e C o m m itte e a t its J a n u a r y m e e tin g — b y
re d u c in g th e lo w e r a s w e ll a s th e u p p e r e n d o f th e ra n g e — in v ie w
o f th e u n c e rta in tie s a s s o c ia te d w ith g ro w th in
in th is p e rio d
o f c h a n g e in th e p u b lic ’s d e m a n d s f o r c u r r e n c y a n d d e m a n d
d e p o s its . N o m e m b e r a d v o c a te d ra is in g e ith e r th e lo w e r o r th e u p p e r
lim it o f th e lo n g e r-ru n ra n g e .
F o r M 2 , m a n y C o m m itte e m e m b e rs fa v o re d re d u c in g th e u p p e r
e n d o f th e ra n g e b y
p e rc e n ta g e p o in t fo r m o s t o f th e s a m e re a s o n s
th a t th e y fa v o re d re d u c in g th e u p p e r lim it fo r M x. H o w e v e r, m o s t
m e m b e r s a d v o c a te d r e ta in in g th e 9 to 1 2 p e r c e n t r a n g e f o r
th a t h a d b e e n a d o p te d a t th e J a n u a ry m e e tin g . O v e r th e p a s t y e a r,
g ro w th in M 3 h a d b e e n f a s te r in re la tio n to g ro w th in b o th
a n d M 2 th a n h a d b e e n p r o je c te d , a s in flo w s o f f u n d s in to n o n b a n k
th rift in s titu tio n s — w h ic h ty p ic a lly h a v e b e e n a m a jo r s o u rc e o f
fin a n c in g fo r h o m e p u rc h a s e s — h a d b e e n e s p e c ia lly s tro n g . B y
re ta in in g th e 1 2 p e r c e n t u p p e r lim it fo r M 3 , th e C o m m itte e w o u ld
a llo w f o r th e p o s s ib ility th a t th is re la tiv e ly s tro n g p e r f o r m a n c e
w o u ld p e rs is t.
A t th e c o n c lu s io n o f th e d is c u s s io n , th e C o m m itte e a g re e d th a t
th e ra n g e s fo r
a n d M 2 s h o u ld b e n a rro w e d b y re d u c in g th e
upper end of each by
p e rc e n ta g e p o in t; th u s , th e ra n g e s p ro je c te d

Mx




M

Mt

Mx

Vi

Ms
Mx

Mx

Vi

517

518

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6




AV

IV

w e re
2 to 7 p e r c e n t fo r M x a n d
2 to 1 0 p e r c e n t f o r M 2 .
T h e r a n g e s p e c ifie d f o r M 3 , a s b e f o r e , w a s 9 to 1 2 p e r c e n t. T h e
a s s o c ia te d r a n g e f o r g ro w th in th e b a n k c re d it p ro x y re m a in e d 6
to 9 p e r c e n t.
A s a t e a r lie r m e e tin g s , it w a s a g re e d th a t th e lo n g e r - te r m r a n g e s ,
a s w e ll a s th e p a rtic u la r lis t o f a g g re g a te s fo r w h ic h s u c h ra n g e s
w e re s p e c ifie d , w o u ld b e s u b je c t to re v ie w a n d m o d ific a tio n a t
s u b s e q u e n t m e e tin g s . It w a s a ls o u n d e r s to o d th a t, a s a r e s u lt o f
s h o rt-ru n f a c to r s , g ro w th ra te s fro m m o n th to m o n th m ig h t w e ll
fa ll o u ts id e th e ra n g e s c o n te m p la te d fo r a n n u a l p e rio d s .
In th e d is c u s s io n o f c u rre n t p o lic y a t th is m e e tin g , th e C o m m itte e
to o k n o te o f a s ta ff a n a ly s is s u g g e s tin g th a t
w a s e x p a n d in g
a t a r a p id r a te in A p r il, in la rg e p a r t b e c a u s e o f a s u b s ta n tia l d e c lin e
in T re a s u ry b a la n c e s . In a d d itio n , it a p p e a re d th a t a s o m e w h a t
m o re ty p ic a l re la tio n s h ip b e tw e e n g ro w th in
a n d g ro w th
in n o m in a l G N P m ig h t b e in th e p ro c e s s o f b e in g r e -e s ta b lis h e d .
It w a s e x p e c te d th a t in th e p e rio d a h e a d g ro w th o f tim e a n d s a v in g s
d e p o s its o th e r th a n n e g o tia b le C D ’s w o u ld r e m a in r e la t iv e ly s tr o n g .
A c c o r d in g ly , th e s ta ff a n a ly s is s u g g e s te d th a t, if p re v a ilin g m o n e y
m a rk e t c o n d itio n s w e re m a in ta in e d o v e r th e 4 w e e k s u n til th e n e x t
m e e tin g , g ro w th in b o th
a n d M 2in th e A p r il- M a y p e rio d w a s
lik e ly to b e h ig h r e la tiv e to th e C o m m itte e ’s lo n g e r - r u n ta r g e t
ran g es.
I n v ie w o f th e ir a s s e s s m e n t th a t th e p a c e o f e c o n o m ic e x p a n s io n
w o u ld b e re la tiv e ly s tro n g , m o s t m e m b e rs fa v o re d d ire c tin g o p e ra ­
tio n s in th e p e rio d im m e d ia te ly a h e a d to w a rd re s tra in in g g ro w th
o f th e m o n e ta ry a g g re g a te s w ith in ra n g e s n o t v e ry m u c h h ig h e r
th a n th e lo n g e r-ru n ra n g e s a g re e d u p o n a t th is m e e tin g a n d in d ic a te d
th a t th e y w o u ld to le ra te s o m e m o d e s t firm in g in m o n e y m a r k e t
c o n d itio n s . It w a s o b s e rv e d th a t s o m e firm in g in m o n e y m a r k e t
c o n d itio n s in th is p e r io d w o u ld re d u c e th e lik e lih o o d o f e x c e s s iv e
m o n e ta ry g ro w th in s u b s e q u e n t m o n th s .
D u rin g th e d is c u s s io n , th e v ie w w a s e x p re s s e d th a t a n a p p re c ia ­
b le tig h te n in g in m o n e y m a r k e t c o n d itio n s in th e p e r io d im m e d i­
a te ly a h e a d w o u ld b e p re m a tu re , fo r a n u m b e r o f re a s o n s . A lth o u g h
th e re c o v e ry h a d m a d e s a tis fa c to ry p ro g r e s s , th e ra te o f u n e m p lo y ­
m e n t w a s s till w e ll a b o v e a d e s ira b le le v e l. R e s id e n tia l c o n s tr u c tio n
w a s ju s t p ic k in g u p a g a in , a n d in d ic a tio n s o f a re c o v e ry in b u s in e s s
e x p e n d itu re s fo r p la n t a n d e q u ip m e n t w e re o n ly n o w b e g in n in g

Mx

Mt

Mx

R e c o r d o f P o lic y A c tio n s o f F O M C

to a p p e a r . B u s in e s s lo a n d e m a n d s a t b a n k s r e m a in e d w e a k . F r o m
th e th ir d q u a r te r o f 1 9 7 5 to th e firs t q u a r te r o f th is y e a r , m o r e o v e r ,
g r o w t h o f M i — a n d t o a l e s s e r e x t e n t , g r o w t h o f M 2— h a d b e e n
lo w r e la tiv e to th e C o m m itte e ’s lo n g e r - r u n r a n g e s . F in a lly , fin a n ­
c ia l m a rk e ts w e re p a rtic u la rly s e n s itiv e a t th is tim e , a n d a n y
a p p re c ia b le tig h te n in g in m o n e y m a rk e t c o n d itio n s c o u ld h a v e a
s u b s ta n tia l e ffe c t o n s h o rt-te rm in te re s t ra te s a n d c o u ld a d v e rs e ly
a ffe c t flo w s o f tim e a n d s a v in g s d e p o s its a t b o th b a n k s a n d n o n b a n k
th rift in s titu tio n s .
A t th e c o n c lu s io n o f th e d is c u s s io n th e C o m m itte e d e c id e d to
s e e k b a n k re s e rv e a n d m o n e y m a rk e t c o n d itio n s c o n s is te n t w ith
m o d e ra te g ro w th in m o n e ta ry a g g re g a te s o v e r th e p e rio d a h e a d .
S p e c ific a lly , th e m e m b e rs c o n c lu d e d th a t g ro w th in
and M 2
o v e r th e A p r il- M a y p e rio d a t a n n u a l ra te s w ith in ra n g e s o f
t o 8V2 p e r c e n t a n d 8 t o 12 p e r c e n t , r e s p e c t i v e l y , w o u l d b e
a c c e p ta b le . T h e C o m m itte e d e c id e d th a t, in a s s e s s in g th e b e h a v io r
o f th e a g g r e g a te s , a p p ro x im a te ly e q u a l w e ig h t s h o u ld b e g iv e n to
M x and M 2.
T h e m e m b e rs a g re e d th a t u n til th e n e x t m e e tin g th e w e e k ly a v e ra g e F e d e ra l fu n d s ra te m ig h t b e e x p e c te d to v a ry in a n o rd e rly
w a y w ith in a ra n g e o f
2 to 5
p e r c e n t. T h e y a ls o a g re e d th a t,
in th e c o n d u c t o f o p e ra tio n s , a c c o u n t s h o u ld b e ta k e n o f d e v e lo p ­
m e n ts in d o m e s tic a n d in te rn a tio n a l fin a n c ia l m a rk e ts .
In a c c o rd a n c e w ith th e u n d e rs ta n d in g re a c h e d a t a s p e c ia l m e e t­
in g h e ld o n M a rc h 2 9 , 1 9 7 6 ,1 th e C o m m itte e d id n o t s p e c ify a n
e x p e c te d r a n g e f o r g ro w th in re s e rv e s a v a ila b le to s u p p o rt p riv a te
n o n b a n k d e p o s its ( R P D ’s ) . A t th e M a r c h 2 9 m e e tin g , th e C o m m it­
te e h a d a g re e d it s h o u ld c o n s id e r th e ra te s o f g ro w th in s e v e ra l
re s e rv e m e a s u re s — in c lu d in g n o n b o rro w e d re s e rv e s , to ta l re s e rv e s ,
a n d th e “ m o n e ta ry b a s e ” (to ta l re s e rv e s p lu s c u rre n c y )— th a t w e re
lik e ly to b e a s s o c ia te d w ith g ro w th in th e m o n e ta r y a g g r e g a te s
a t th e r a te s it s p e c ifie d f o r 2 -m o n th p e r io d s . I t w a s c o n te m p la te d
th a t fu rth e r e x p e rim e n ta tio n a n d a n a ly s is w o u ld h e lp th e C o m m itte e
to e v a lu a te th e re la tiv e u s e fu ln e s s o f s e v e ra l p o s s ib le re s e rv e
m e a s u re s fo r o p e ra tio n a l p u rp o s e s .

M1

AV

4Vi

X
A

xThe March 29 meeting had been called for the purpose of reviewing procedures
for formulating and implementing the Committee’s instructions to the Manager
of the System Open Market Account at the Federal Reserve Bank of New York.




519

520

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6




T h e f o llo w in g d o m e s tic p o lic y d ire c tiv e w a s is s u e d to th e F e d e ra l
R e se rv e B a n k o f N e w Y o rk :
The information reviewed at this meeting suggests that growth
in real output of goods and services picked up in the first quarter.
In March retail sales rose sharply further and recovery in industrial
production continued. Gains in nonfarm employment were again
widespread and the unemployment rate declined from 7.6 to 7.5
per cent. Over the first quarter wholesale prices of farm products,
foods, and fuels declined appreciably, but average wholesale prices
of other commodities rose almost as rapidly as during the second
half of 1975. Over recent months, the advance in the index of
average wage rates has moderated somewhat.
The average value of the dollar against leading foreign currencies
has been relatively steady in recent weeks, while the British pound
and the Italian lira have remained under considerable downward
pressure. In February the U.S. foreign trade balance registered a
second successive monthly deficit; reported net outflows of private
capital remained moderate.
Monetary aggregates expanded moderately in March. At com­
mercial banks, inflows of time and savings deposits other than
negotiable CD’s fell substantially from the exceptional pace of
February; inflows to nonbank thrift institutions remained strong.
Since mid-March, both short- and long-term market interest rates
have declined.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions that
will encourage continued economic recovery, while resisting infla­
tionary pressures and contributing to a sustainable pattern of inter­
national transactions.
To implement this policy, while taking account of developments
in domestic and international financial markets, the Committee seeks
to achieve bank reserve and money market conditions consistent
with moderate growth in monetary aggregates over the period ahead.
Votes for this action: Messrs. Burns, Volcker,
Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Partee, Wallich, and Winn. Votes against this
action: None. Absent and not voting: Mr. Holland.

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 e p o rt ,
are released about a month after the meeting and are subsequently published in
the B u lle tin .

521

Law Department
Statutes, regulations, interpretations, and decisions

Privacy A ct of 1974
Effective May 20, 1976, the Board of Governors
adopted a notice of the existence and character
of systems of records maintained as set forth
below.
BG FR S— 1
System name: FRB— Recruiting and Placement
Records
System location:
Board of Qovernors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Persons who have applied for employment
with or are employed by the Federal Reserve
Board.
Categories of records in the system: These
records may contain information relating to the
education, training, employment history and earn­
ings, appraisal of past performance, convictions
for offenses against the law; results of tests, ap­
praisal of potential, honors, awards of fellowships;
military service; veteran status, school transcripts,
work samples; birth date; social security number;
shipping authorizations; travel vouchers, offer let­
ters and correspondence, reference checks, and
home address of persons who have applied for
Board employment or are employed by the Federal
Reserve Board.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U.S.C.
Sec. 221 et seq.).
Routine uses of records maintained in the
system , including categories of users and the
purposes of such uses: Information in these
records may be used:
a. To refer applicants for purposes of consid­
eration for placement in positions for which an
applicant has applied and is qualified. This in­
cludes various government organizations.
b. To refer current Board employees for con­




sideration for reassignment and promotion within
the Board.
c. As a data source for management information
for production of summary descriptive statistics
and analytical studies in support of the function
for which the records are collected and maintained,
or for related personnel management functions or
manpower studies; may also be utilized to respond
to general requests for statistical information
(without personal identification of individuals)
under the Freedom of Information Act or to locate
specific individuals for personnel research of other
personnel management functions.
d. To refer, where there is an indication of a
violation or potential violation of law, whether
civil, criminal or regulatory in nature, to the ap­
propriate agency, whether Federal, State or local,
charged with the responsibility of investigating or
prosecuting such violation or with enforcing or
implementing the statute, or rule, regulation or
order issued pursuant thereto.
e. To request information from a Federal, State
or local agency maintaining civil, criminal, or
other relevant enforcement or other pertinent in­
formation, such as licenses, if necessary to obtain
relevant information to an agency decision con­
cerning the hiring or retention of an employee,
the issuance of a security clearance, the letting
of a contract, or the issuance of a license, grant
or other benefit.
f. To provide information or disclose to a Fed­
eral agency, or any other employer or prospective
employer in response to its request, in connection
with the hiring or retention of an employee, the
letting of a contract, or issuance of a license, grant
or other benefit by the requesting agency to the
extent that the information is relevant and neces­
sary to the requesting agency’s decision on that
matter.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Records are maintained on magnetic
tapes, punched cards, microfilm, cards, lists,
forms, and in folders.

522

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

Retrievability: Records are indexed by name,
combination of birth date, social security account
number, and applicable identification number.
Safeguards: Access to and use of these records
are limited to those persons whose official duties
require such access.
Retention and disposal:
a. Files of eligibles. Retained for a minimum
of one year after date of determination that no
suitable position exists currently.
b. Index cards. Destroyed when no longer
needed.
c. Cancelled and ineligible applications. Same
as “ a” above.
d. Inquiries and replies regarding availability for
appointment. Same as “ a” above.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Individuals should
provide name, date of birth, social security num­
ber, identification number (if known), approximate
date of record, and type of position with which
concerned to the System Manager, address above.
Record access procedures: Individuals should
provide name, date of birth, social security num­
ber, identification number (if known), approximate
date of record, and type of position with which
concerned to the System Manager, address above.
Record source categories: Information in this
system of record either comes from the individual
to whom it applies or is derived from information
he or she supplied, except reports from medical
personnel on physical qualifications and statements
supplied by references.
Systems exempted from certain provisions of
the Act: Pursuant to subsections (k)(2) and (k)(5)
of the Privacy Act and the Board’s regulation
relating thereto (12 CFR 261a), certain portions
of this system of records may be exempted from
certain provisions of the Act where: (1) such
portions represent investigatory material compiled
for law enforcement purposes, or (2) such portions
represent investigatory material compiled solely
for the purpose of determining suitability, eligi­
bility, or qualifications for Board employment to
the extent that disclosure of such portions would
reveal the identity of a source who furnished
information under a promise of confidentiality.




B G FR S— 2
System name: FRB Personnel Background Inves­
tigation Reports
System location:
Board of Governors
Federal Resere System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Current and former applicants for employ­
ment by the Board of Governors; Federal Reserve
System employees considered for access to classi­
fied information or restricted areas and/or security
determinations as contractors, employees of con­
tractors, experts, instructors, and consultants to the
Board. Individuals who are neither applicants nor
employees of the Board but are or were involved
in Board programs under a cooperative assignment
or similar agreement; individuals who are neither
applicants nor employees of the Board but are or
were involved in matters related to the operation
of the Board.
Categories of records in the system: These
records may contain investigative information re­
garding an individual’s character, financial re­
sponsibility, conduct, behavior; arrests and con­
victions for any violations against the law; reports
of interviews with former supervisors, co-workers,
associates, educators, etc. ; reports about the qual­
ifications of an individual for a specific position;
reports of inquiries with law enforcement agen­
cies; former employers; educational institutions
attended; and other information developed from
the above.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U .S.C .
Sec. 221 et seq.).
Routine uses of records maintained in the
system , including categories of users and the
purposes of such uses: The contents of these
records may be disclosed to and used as follows:
a. To assist in determining the suitability for
access to classified information.
b. To designated officers and employees of other
agencies and departments of the Federal Govern­
ment, and the District of Columbia Government,
having an interest in the individual for employment
purposes, in connection with performance of a
service to the Federal Government, under a con­
tract or other agreement, including a security
clearance or access determination, and a need to

L a w D e p a r tm e n t

evaluate qualifications, suitability, and loyalty to
the United States Government.
c. To the intelligence agencies of the Depart­
ment of Defense, National Security Agency, Cen­
tral Intelligence Agency, and the Federal Bureau
of Investigation for use in intelligence activities.
d. To any source from which information is
requested by the Board in the course of an investi­
gation, to the extent necessary to identify the
individual, inform the source of the nature and
purpose of the investigation and to identify the
type of information requested.
e. In the event of an indication of any violation
or potential violation of the law, whether civil,
criminal, or regulatory in nature, and whether
arising by statute or by regulation, rule or order
issued pursuant thereto, the relevant records in the
system of records may be referred, as a routine
use, to the appropriate agency, whether Federal,
State, or local, charged with the responsibility of
investigating or prosecuting such violation or
charged with enforcing or implementing the stat­
ute, or rule, regulation or order issued pursuant
thereto; such referral shall also include, and be
deemed to authorize any and all appropriate and
necessary uses of such records in a court of law
and before an administrative board or hearing.
f . As a data source for management information
for production of descriptive statistics and analyti­
cal studies in support of the function for which
the records are collected and maintained or for
related personnel management functions or man­
power studies; may also be utilized to respond to
general requests for statistical information (without
personal identification of individuals) under the
Freedom of Information Act or to locate specific
individuals for personnel research or other person­
nel management functions.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Files are maintained in folders and
index cards in steel file cabinets with manipu­
lation-proof combination lock.
Retrievability: Records are indexed by name
in alphabetical order.
Safeguards: Access to and use of these records
are limited to those persons whose official duties
require access and who have appropriate security
clearance.
Retention and disposal: The indexing cards are
retained indefinitely; while the reports of investi­




523

gation are returned to the originating agency after
separation of employment.
System manager(s) and address:
Assistant Director
for Contingency Planning
Office of Staff Director
for Management
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Notification procedure: An individual may in­
quire as to whether or not the system contains a
record pertaining to him or to her by addressing
a written request to:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
The request should include the full name and
date and place of birth of the individual, and any
available information regarding the type of record
involved, and the category of individual under
which the inquirer feels he or she fits.
Record access procedures: In response to a
written request by an individual to determine
whether or not the system contains a record per­
taining to him or to her, the Director will set forth
the procedure for gaining access to the record. If
the individual desires to contest the contents of
a record, he or she may do so by writing to the:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Record source categories: Information con­
tained in the system is obtained from the follow­
ing:
1. Applications and other personnel and secu­
rity forms furnished by the individual.
2. Investigative material furnished by other
Federal agencies. Notices of personnel actions
furnished by other Federal agencies.
3. By personal investigation or written inquiry
from sources such as:
Employers
Schools
References
Neighbors
Associates

524

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

Police Departments
Courts
Credit Bureau
Medical Records
Probation Officials
Prison Officials
4. Newspapers, magazines, periodicals, and
other publications.
5. Published hearings of Congressional Com­
mittees.
Systems exempted from certain provisions of
the Act: Pursuant to subsections (k)(2) and (k)(5)
of the Privacy Act and the Board’s regulation
relating thereto (12 CFR 261a), certain portions
of this system of records may be exempted from
certain provisions of the Act where: (1) such
portions represent investigatory material compiled
for law enforcement purposes, or (2) such portions
represent investigatory material compiled solely
for the purpose of determining suitability, eligi­
bility, or qualifications for Board employment to
the extent that disclosure of such portions would
reveal the identity of a source who furnished
information under a promise of confidentiality.
BG FR S— 3
System name: FRB— Medical Records
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: 1. Applicants who have been medically ex­
amined for Board employment.
2. Applicants for disability retirement under the
Civil Service Retirement Law or Federal Reserve
System Retirement Plan.
3. Current and former Federal Reserve Board
employees.
Categories of records in the system: 1. Infor­
mation relating to an individual’s medical qualifi­
cations to hold a position with the Board.
2. Medical information relating to an individ­
ual’s capability (physical and mental) to satis­
factorily perform the duties of the position he or
she holds or held.
3. Information relating to an employee’s par­
ticipation in an occupational health services pro­
gram.
4. Information relating to pre-employment or
periodic medical examinations to assure that the
incumbent is qualified (physically and mentally)




to satisfactorily perform the duties of the position.
5. Information attesting to an annuitant’s state
of health as required for “ insurable interest” sur­
vivor annuity elections.
6. Information relating to handicaps.
7. Information relating to employee partici­
pation in the Federal Civilian Employee Alcohol­
ism and Drug Abuse Programs.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U .S.C .
Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: 1. Information in these
records is used to:
a. determine veteran disability status
b. support applications for Disability Retirement
c. support “ insurable interest” survivor annuity
elections.
d. determine suitability for employment or con­
tinued employment
e. assist in medical counseling.
2. Information in these records may be pro­
vided to officials of other Federal agencies respon­
sible for Federal benefit programs administered by:
a. Office of Workmen Compensation Programs
b. Retired Military Pay Centers
c. Veterans Administration
d. Social Security Administration
e. Specific private contractors engaged in pro­
viding benefits under Federal contracts.
f. Civil Service Commission.
3. Information in these records is used:
a. to refer, where there is an indication of a
violation or potential violation of law, whether
civil, criminal or regulatory in nature, to the ap­
propriate agency, whether Federal, State, or local,
charged with the responsibility of investigating or
prosecuting such violation or charged with enforc­
ing or implementing the statute or rule, regulation
or order issued pursuant thereto.
b. to request information from a Federal, State
or local agency maintaining civil, criminal or other
relevant enforcement or other pertinent informa­
tion, such as a license, if necessary to obtain
relevant information to the Board’s decision con­
cerning the hiring or retention of an employee,
the issuance of a security clearance, the letting
of a contract or the issuance of a grant or other
benefit.
c. to provide information or disclose to a Federal
agency, in response to its request, in connection
with the hiring or retention of an employee, the

L a w D e p a r tm e n t

letting of a contract or issuance of a license, grant
or other benefit by the requesting agency to the
extent that the information is relevant and neces­
sary to the requesting agency’s decision on the
matter.
d.
as a data source for management information
for production of descriptive statistics and analyti­
cal studies in support of the function for which
the records are collected and maintained, or for
related personnel management functions or man­
power studies; may also be utilized to respond to
general requests for information (without personal
identification of individuals) under the Freedom of
Information Act or to locate specific individuals
for personnel research or other personnel manage­
ment functions.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Records are in folders.
Retrievability: Records are indexed by name,
social security number, identification number, date
of birth and/or claim number.
Safeguards: Access to and use of these records
are limited to those persons whose official duties
require such access. Records are stored in lockable
metal containers.
Retention and disposal:
a. Medical certificates and other medical records
of examination used to determine an employee’s
fitness for a job 6 years after separation.
b. Miscellaneous medical records, corre­
spondence, dispensary records and similar papers,
6 months after separation.
c. Applicant’s medical records, 6 years after
separation.
d. Disability retirement medical files, 6 years
after separation.
Systems exempted from certain provisions of
the Act: None; however, see special procedures
provided at 12 CFR 261 a.6.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Individuals requesting
information about this system of records should
provide their full name, date of birth, social secu­
rity number, name of office or division in which
currently or formerly employed, and annuity ac­




525

count number, if any has been assigned, to the
System Manager, address above.
Record access procedures: Individuals re­
questing information about this system of records
should provide their full name, date of birth, social
security number, name of office or division in
which currently or formerly employed, and annu­
ity account number, if any has been assigned, to
the System Manager, address above.
Record source categories:
1. The individual to whom the record per­
tains.
2. Personal physicians.
3. Medical institutions.
4. Official records of other Federal agencies.
5. Federal Reserve Board Official Personnel
Records.
6. Federal Reserve System Personnel Man­
agement Records Systems.
B G FR S— 4
System name: FRB— General Personnel Records
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Current and former employees of and con­
sultants to the Federal Reserve Board and the
surviving spouses, and children of former Board
employees, if any.
Categories of records in the system: This
system of records consists of a variety of docu­
ments relating to personnel actions of the Board
and its determinations made about an individual
for, and during the course of, his employment by
the Board. These records may contain information
about employees and former employees relating
to employment, placement, personnel actions,
performance considerations and evaluations;
training and development activities and plans,
background investigations; reference checks; sal­
ary history and other personnel matters. It also
includes minority group designator; records relat­
ing to benefits and designation of beneficiary;
emergency contact, documentation supporting
personnel actions or decisions made about an in­
dividual; awards; employee parking and other in­
formation relating to the status of the individual
either while considered for employment or while
employed by the Board.

526

F e d e r a l R e se r v e B u lle tin □ J u n e 1 9 7 6

Authority for maintenance of the system:
Sections 10 and 11 of the Federal Reserve Act
(12 U.S.C. Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Information in these
records is used:
a. For purposes of review in connection with
appointments, transfers, promotions, reassign­
ments, training and development needs, adverse
actions, disciplinary actions, and determination of
qualifications of an individual, and in assisting the
individual in locating other employment.
b. For purposes of making a decision when a
Board employee or former Board employee is
questioning the validity of a specific document in
the individual’s record.
c. By the courts to render a decision.
d. To provide information to a prospective em­
ployer of a current or former Board employee.
e. To provide data for the automated Personnel
records.
f. To provide information to a Federal agency,
or any other employer or prospective employer,
in response to its request in connection with the
hiring or retention of an employee, the letting of
a contract, or issuance of a license, grant, or other
benefit by the requesting agency, to the extent that
the information is relevant and necessary to the
requesting agency’s decision on the matter.
g. To request information from a Federal, State,
or local agency maintaining civil, criminal, or
other relevant enforcement or other pertinent in­
formation, such as licenses, if necessary to obtain
relevant information or other pertinent information
to a Board decision concerning the hiring or re­
tention of a n employee, the issuance of a security
clearance, the letting of contract, or the issuance
of a grant or other benefit.
h. To refer, where there is an indication of a
violation or potential violation of law, whether
civil, criminal or regulatory in nature, to the ap­
propriate agency, whether Federal, State, or local,
charged with the responsibility of investigating or
prosecuting such violation or charged with enforc­
ing or implementing the statute, or rule, regula­
tion, or order issued pursuant thereto.
i. As a data source of management information
for production of statistical and analytical studies
and reports in support of the function for which
the records are collected and maintained, or for
related personnel management functions or man­
power studies; may also be utilized to respond to




general requests for statistical information (without
personal identification of individuals) under the
Freedom of Information Act or to locate specific
individuals for personnel research or other person­
nel management functions.
j. Determine eligibility for coverage, benefits
due, and payment of benefits under the various
benefits programs available to the Board and its
staff.
k. Transfer information necessary to support a
claim for benefits under the various benefit pro­
grams in operation at the Federal Reserve Board.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Records are maintained in file folders,
magnetic tape, disk, punched cards, index cards
and microfilm.
Retrievability: Records are indexed by any
combination of name, date of birth, social security
number, or identification number.
Safeguards: Records are located in lockable
metal file cabinets or in metal file cabinets in
secured rooms with access limited to those whose
official duties require it.
Retention and disposal: The General Personnel
Record is retained until five years after death or
an individual achieves age 75 where he or she does
not separate employment by retirement.
System manager(s) and address: For current
and former Federal Reserve Board employees:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Notification procedure: Inquiries, including
name, date of birth, and social security number
should be addressed to the System Manager,
address above.
Record access procedures: Current and former
Federal Reserve Board employees who wish to
gain access to or contest their records should
contact the System Manager, address above.
Former Board employees should direct such a
request in writing, including their name, date of
birth, and social security number.
Record source categories: Information in this
system of records comes from the individual to
whom it applies or is derived from the information
the individual supplied, except information pro­
vided by Board officials. Information is also ob­

L a w D e p a r tm e n t

tained from the following sources for administra­
tion of the benefits portion of the system:
1. CSC Personnel Management Records Sys­
tem
2. Personnel records of other Government
agencies
3. Personnel records of Federal Reserve Banks.
Systems exempted from certain provisions of
the Act: Pursuant to subsections (k)(2) and (k)(5)
of the Privacy Act and the Board’s regulation
relating thereto (12 CFR 261a), certain portions
of this system of records may be exempted from
certain provisions of the Act where: (1) such
portions represent investigatory material compiled
for law enforcement purposes, or (2) such portions
represent investigatory material compiled solely
for the purpose of determining suitability, eligi­
bility, or qualifications for Board employment to
the extent that disclosure of such portions would
reveal the identity of a source who furnished
information under a promise of confidentiality.
B G FR S— 5
System name: FRB— EEO Discrimination Com­
plaint File
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Applicants for Board employment, current
and former Board employees, and annuitants who
file a complaint of discrimination or appeal a
determination made by an official of the Board
relating to equal employment opportunities.
Categories of records in the system: This
system of records contains information or docu­
ments relating to a complaint, the decision or
determination made by the Board affecting an
individual under the Board’s EEO regulations and
procedures. The records consist of the initial com­
plaint or appeal letters or notices to the individual,
record of hearings when conducted, materials
placed into the record to support the decision or
determination, affidavits or statements, testimonies
of witnesses, investigative reports, instructions to
the Board and/or individual about action to be
taken to comply with decisions, and related corre­
spondence, opinions and recommendations.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U.S.C .
Sec. 221 et seq.).




527

Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: The information in the
records may be used:
a. To respond to a request from a Member of
Congress regarding the status of an appeal, com­
plaint or grievance.
b. To provide information to the public on the
decision of an appeal, complaint, or grievance
required by the Freedom of Information Act.
c. To respond to a Court subpoena and/or to
refer to a District court in connection with a civil
suit.
d. To adjudicate an appeal, complaint, or
grievance.
e. As a data source for management information
for production of summary descriptive statistics
and analytical studies in support of the function
for which the records are collected and maintained,
or for related personnel management functions or
manpower studies; may also be utilized to respond
to general requests for statistical information
(without personal identification of individuals)
under the Freedom of Information Act or to locate
specific individuals for personnel research or other
personnel management functions.
f. To refer, where there is an indication of a
violation or potential violation of law, whether
civil, or regulatory in nature, to the appropriate
agency, whether Federal, State, or local, charged
with the responsibility of investigating or prose­
cuting such violation or charged with enforcing
or implementing the statute, rule, regulation or
order issued pursuant thereto.
g. To provide information or disclose to a Fed­
eral agency, in response to its request, in connec­
tion with the hiring or retention of an employee,
the letting of a contract, or issuance of a license,
grant, or other benefit by the requesting agency
to the extent that the information is relevant and
necessary to the requesting agency’s decision on
that matter.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: These records are maintained in file
folders, binders, and index cards.
Retrievability: These records are indexed by
the names of the individuals on whom they are
maintained.
Safeguards: Access to and use of these records
are limited to those persons whose official duties

528

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

require such access. Personnel screening is em­
ployed to prevent unauthorized disclosure.
Retention and disposal: The records are main­
tained indefinitely.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Individuals who have
filed appeals or grievances are aware of that fact
and have been provided a copy of the records.
They may, however, contact the System Manager,
address above. Individuals should provide their
name, date of birth, and the approximate date of
employment or application, and the kind of action
taken by the Board when making inquiries about
records.
Record access procedures: Individuals who
have appealed or filed a grievance about a decision
or determination made by the Board or about
conditions existing in the Board already have been
provided a copy of the records. However, to gain
access to or contest the records in this system,
individuals should contact the System Manager,
address above. Individuals should provide their
name, date of birth, approximate date of employ­
ment or application, and the kind of action taken
by the Board when requesting access to, or contest
of records.
Record source categories:
a. Individual to whom the record pertains
b. Board employees
c. Affidavits or statements from employee
d. Testimonies of witnesses
e. Official document relating to the appeal,
grievance, or complaints
f . Correspondence from specific organization or
persons
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(2) of the
Privacy Act and the Board’s regulations relating
thereto (12 CFR 261a), certain portions of this
system of records may be exempted from certain
provisions of the Act where such portions repre­
sent investigatory material compiled for law en­
forcement purposes.
B G FR S— 6
System name: FRB— Adverse Information and
Action, Disciplinary, Outside Business A c­




tivity and Financial Responsibility Records.
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Current and former Board employees (in­
cluding special employees) and annuitants who are
involved in an Adverse Action; Board officials
providing annual financial responsibility state­
ments; employees who suffer a withholding of a
Progress Step Increase; employees who file an
Outside Business Activity application; and those
employees who have creditors contacting the
Board relative to credit problems.
Categories of records in the system: This
system of records may contain information or
documents relating to a determination made by the
Board affecting an individual. The records consist
of the letters or notices to the individual, record
of hearings when conducted, materials placed into
the record to support the decision or determination,
affidavits or statements, testimonies of witnesses,
investigative reports, and related correspondence,
opinions and recommendations. Also, copies of
Financial Responsibility Statements and Outside
Business Interest applications filed by the em­
ployee; and letters from creditors.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12
U .S.C . Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: The information in the
records may be used:
a. To respond to a request from a Member of
Congress regarding the status of an appeal, com­
plaint or grievance.
b. To provide information to the public on the
decision of an appeal, complaint, or grievance
required by the Freedom of Information Act.
c. To respond to a court subpoena and/or to
refer to a District court in connection with a civil
suit.
d. To adjudicate an appeal, complaint, or
grievance.
e. As a data source for management information
for production of descriptive statistics and analyti­
cal studies in support of the function for which
the records are collected and maintained, or for
related personnel management functions or man­
power studies; may also be utilized to respond to

L a w D e p a r tm e n t

general requests for statistical information (without
personal identification of individuals) under the
Freedom of Information Act or to locate specific
individuals for personnel management functions.
f. To refer, where there is an indication of a
violation or potential violation of law, whether
civil, criminal or regulatory in nature, to the ap­
propriate agency, whether Federal, State, or local,
charged with the responsibility of investigating or
prosecuting such violation or charged with enforc­
ing or implementing the statute, rule, regulation
or order issued pursuant thereto.
g. To request information from a Federal, State
or local agency maintaining civil, criminal, or
other relevant enforcement or other pertinent in­
formation, such as licenses, if necessary to obtain
relevant information to a Board decision concern­
ing the hiring or retention of an employee, the
issuance of a security clearance, the letting of a
contract, or the issuance of a grant, or other
benefit.
h. To provide information or disclose to a Fed­
eral agency, in response to its request, in connec­
tion with the hiring or retention of an employee,
the letting of a contract, or issuance of a license,
grant or other benefit by the requesting agency to
the extent that the information is relevant and
necessary to the requesting agency’s decision on
that matter.
i. To identify or determine conflict of interest
situations or potential conflict of interest.
j. To advise an employee of potential problems.
k. To administer various aspects of established
personnel management programs.
Storage: These records are maintained in file
folders, binders, index cards, magnetic tape and
disk.
Retrievability: These records are indexed by
the names of the individuals on whom they are
maintained.
Safeguards: Access to an use of these records
are limited to those persons who official duties
require such access. Personnel screening is em­
ployed to prevent unauthorized disclosure.
Retention and disposal: The records are main­
tained indefinitely after cessation of employment
unless deemed unnecessary, and thus destroyed.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551




529

Notification procedure: Individuals should
provide name, date of birth, social security num­
ber, identification number (if known), approximate
date of record, and type of situation with which
concerned to the System Manager, address above.
Record access procedures: Individuals should
provide name, date of birth, social security num­
ber, identification number (if known), approximate
date of record, and type of situation with which
concerned to the System Manager, address above.
Record source categories: a. Individual to
whom the record pertains
b. Board officials
c. Affidavits or statements from employees
d. Testimonies of witnesses
e. Official documents relating to an action, ap­
peal, grievance, or complaint.
f. Correspondence from specific organizations
or persons.
Systems exempted from certain provisions of
the Act: None.
BG FR S— 7
System name: FRB— Payroll
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Past and present employees and members of
the Board.
Categories of records in the system: Varied
payroll records including payment vouchers, com­
prehensive listing of employees, requests for de­
ductions, tax forms, W-2 forms, overtime re­
quests, leave data, workmen’s compensation data.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U .S.C .
Sec 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Used in the preparation
of Board payroll, as input to several management
reports and, from time to time, input to other
contributing programs and as input to Board stud­
ies, analyses, and reports.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: On tape, disk, punched cards, index
cards, folders and document files.
Retrievability: Filed by name, social security

530

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

number, and employee number.
Safeguards: Access is restricted to authorized
personnel only. Records are stored in cabinets and
a safe. Access to computer records is by “ limited
access” employees.
Retention and disposal: Various: minimum of
one year from date of annual audit; maximum of
indefinite.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Current and former
employees who wish to gain access or contest their
records should contact System Manager, address
above. Individuals should provide name, date of
birth, social security number, identification num­
ber (if known).
Record access procedures: Current and former
employees who wish to gain access or contest their
records should contact System Manager, address,
above. Individuals should provide name, date of
birth, social security number, and identification
number (if known).
Record source categories: Internal personnel
forms, Federal, State, and local tax forms, em­
ployee authorizations and directive forms, insur­
ance forms, leave and overtime reports, Federal
and State garnishment forms.
Systems exempted from certain provisions of
the Act: None.
BG FR S— 8
System name: FRB— Leave Records
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Present employees, former employees for a
period of three years following their separation
from the Board.
Categories of records in the system: Contains
timekeeper records, leave cards, payroll notifica­
tions, supporting memorandum, periodic leave
statements, and creditable service documentation.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U .S.C.
Sec. 221 et seq.).
Routine uses of records maintained in the




system, including categories of users and the
purposes of such uses: Used as a data source for
management information and payment of leave,
for production of statistics and analytical studies
in support of the function for which records are
collected and maintained or for related personnel
management functions and manpower studies.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Punched card, tape, disk, index card,
folder, and print out.
Retrievability: Filed by date, but may be filed
by name or identifying number.
Safeguards: Stored in locked metal file cabi­
nets, other records stored in secured limited access
computer facilities.
Retention and disposal: Detailed information
destroyed after two years. Summary data is a part
of permanent official personnel file.
System manager(s) and address:
Division of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Individuals wishing to
know whether information about them is main­
tained in this system of records should address
inquiries to the System Manager above. Former
Board employees should direct such a request in
writing, including their name, date of birth, and
social security number.
Record access procedures: Individuals wishing
to gain access or contest their records should
contact the System Manager, address above.
Former Board employees should direct such a
request in writing, including their name, date of
birth, and social security number.
Record source categories: Records, files and
forms of the Board, information provided by the
employee and previous Federal Government em­
ployers.
Systems exempted from certain provisions of
the Act: None.
B G FR S— 9
System name: FRB— Consultant File
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551

L a w D e p a r tm e n t

Categories of individuals covered by the sys­
tem: Individuals providing consulting services to
the Board in accordance with a formal agreement.
Categories of records in the system: Docu­
ments, letters, memorandum of understanding re­
lating to agreement, rates of pay, payment records,
vouchers, invoices, and selection; negotiations,
implementation, scope and performance of work.
Additional information may be found on re­
employed annuitants in the FRB-General Person­
nel Records.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U.S.C .
Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Routine uses include, but
are not restricted to, selection, monitoring, evalu­
ation and control, audit and analysis, routine
management activity, and statistical use without
individual indentification; verification and confir­
mation; and referral when used as a basis for
prospective employment by other than the Board;
to provide information or disclose to a Federal
agency, or any other employer or prospective
employer, in response to its request, in connection
with the hiring or retention of an employee, the
letting of a contract, or issuance of a license, grant,
or other benefit by the requesting agency, to the
extent that the information is relevant and neces­
sary to the requesting agency’s decision on the
matter.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Folder, punched card, tape, disk and
index card.
Retrievability: File by name, and cross index
by voucher number and date, or identifying num­
ber.
Safeguards: Stored in secured area.
Retention and disposal: Retained indefinitely.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Individuals who have
filed appeals or grievances are aware of that fact
and have been provided a copy of the records.
They may, however, contact the System Manager,
address, above. Individuals should provide their




531

name, date of birth, and the approximate date of
employment or application, and the kind of action
taken by the Board when making inquiries about
records.
Record access procedures: Individuals who
have appealed or filed a grievance about a decision
or determination made by the Board or about
conditions existing in the Board already have been
provided a copy of the records. However, to gain
access or contest the records in this system, indi­
viduals should contact the System Manager,
address above. Individuals should provide their
name, date of birth, approximate date of employ­
ment or application, and the kind of action taken
by the Board when requesting access to, or contest
of records.
Record source categories: Information in this
system of records is obtained from the individual
to whom it applies or is derived from information
supplied by the individual, except information
provided by Board staff, and for re-employed an­
nuitants where the inactive General Personnel File
is activated.
Systems exempted from certain provisions of
the Act: Pursuant to subsections (k)(2) and (k)(5)
of the Privacy Act and the Board’s regulation
relating thereto (12 CFR 261a), certain portions
of this system of records may be exempted from
certain provisions of the Act where: (1) such
portions represent investigatory material compiled
for law enforcement purposes, or (2) such portions
represent investigatory material compiled solely
for the purpose of determining suitability, eligi­
bility, or qualifications for Board employment to
the extent that disclosure of such portions would
reveal the identity of a source who furnished
information under a promise of confidentiality.
BG FR S— 10
System name: FRB— General File on Board
Members
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Past and present members of the Board of
Governors.
Categories of records in the system: Biogra­
phies of past and present members of the Board,
oaths of office, and miscellaneous correspondence

532

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

relating to such Governors.
Authority for maintenance of the system:
Section 10 of the Federal Reserve Act (12 U .S.C.
Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Used for background
information to determine qualifications for ap­
pointment and reappointment, for compiling in­
formation for news releases and other publications,
and for recording correspondence concerning the
Governors.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Paper records.
Retrievability: Indexed by name.
Safeguards: Locked in diebold power file.
Access limited to Board staff on a restricted basis.
Retention and disposal: Retained indefinitely.
System manager(s) and address:
Secretary of the Board
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedures: Same as System
Manager, address above.
Record access procedures: Same as System
Manager, address above.
Record source categories: Generated by indi­
viduals’ incoming correspondence and staff re­
sponse thereto.
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(5) of the
Privacy Act and the Board’s regulations relating
thereto (12 CFR 261a), certain portions of this
system of records may be exempted from certain
provisions of the Act where such portions repre­
sent investigatory material compiled solely for the
purpose of determining suitability, eligibility, or
qualifications for Board employment to the extent
that disclosure of such portions would reveal the
identity of a source who furnished information
under a promise of confidentiality.
B G F R S— 11
System name: FRB— Official General Files
S yste m location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551




Categories of individuals covered by the sys­
tem: Correspondents with the Board and System
Personnel.
Categories of records in the system:
In­
coming and outgoing correspondence concerning
Board business. Records relating to System Per­
sonnel in official capacities such as instructors,
consultants, and Board representatives to various
committees, conferences, etc.
Authority for maintenance of the system:
Sections 10 and 11 of the Federal Reserve Act
(12 U.S.C . Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Used for reference pur­
poses in preparing responses to inquiries from the
public and used in recording official duties of
System Personnel.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Paper records.
Retrievability: Indexed by name.
Safeguards: Locked in diebold power file.
Access limited to Board staff on a restricted basis.
Retention and disposal: Retained indefinitely.
System manager(s) and address:
Secretary of the Board
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Notification
address above.

procedure:

System

Manager,

Record access procedures: System Manager,
address above.
Record source categories: Generated by indi­
viduals’ incoming correspondence and staff re­
sponse thereto.
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(5) of the
Privacy Act and the Board’s regulations relating
thereto (12 CFR 261a), certain portions of this
system of records may be exempted from certain
provisions of the Act where such portions repre­
sent investigatory material compiled solely for the
purpose of determining suitability, eligibility, or
qualifications for Board employment to the extent
that disclosure of such portions would reveal the
identity of a source who furnished information
under a promise of confidentiality.

L a w D e p a r tm e n t

B G FR S— 12
System name: FRB— Biographical File of Federal
Reserve Personnel
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Current and former Federal Reserve System
officers, and their staff.
Categories of records in the system: This
system consists of a variety of records relating to
personnel actions and determinations made about
an individual while employed in the Federal Re­
serve System. These records, contain information
about an individual relating to birth date; educa­
tion; veteran status; tenure; handicap; past and
present salaries, grades, and position titles; per­
sonnel actions, including, but not limited to, ap­
pointment, reassignment, demotion, detail, pro­
motion, transfer, and separation; photograph,
awards; and other information relating to the status
of the individual.
Authority for maintenance of the system:
Sections 4, 11 and 22 of the Federal Reserve Act
(12 U .S.C . Sec. 221 et seq.).
Routine uses of records maintained in the
system , including categories of users and the
purposes of such uses: Information in these
records may be used:
a. By Federal Reserve System officials for pur­
poses of review in connection with appointments,
transfers, promotions, reassignments, adverse ac­
tions, disciplinary actions, and determination of
qualifications of an individual.
b. By the Board of Governors for purposes of
making a decision when a listed employee or
former listed employee is questioning the validity
of a specific document in the individual’s record.
c. By the courts to render a decision when the
Board has refused to release to a current or former
System employee a record under the Freedom of
Information Act.
d. To publish name and title data for the direc­
tory of officers of Federal Reserve Banks.
e. To provide reports to the Congress, agencies,
and the public on characteristics of the System
work force.
f. To refer, where there is an indication of a
violation or potential violation of law, whether




533

civil, criminal, or regulatory in nature, to the
appropriate agency, whether Federal, State, or
local, charged with the responsibility of investi­
gating or prosecuting such violation or charged
with enforcing or implementing the statute, rule,
regulation, or order issued pursuant thereto.
g.
As a data source for management information
for production of summary descriptive statistics
and analytical studies in support of the function
for which the records are collected and maintained,
or for related personnel management functions or
manpower studies ; may also be utilized to respond
to general requests for information (without per­
sonal identification of individuals) under the Free­
dom of Information Act or to locate specific indi­
viduals for personnel research or other personnel
management functions.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Records are maintained in file folders,
magnetic tape, punched cards and disk.
Retrievability: Records are indexed by combi­
nation of name or identification number.
Safeguards: Records are located in lockable
metal file cabinets or in metal file cabinets in
secured rooms with access limited to those whose
official duties require access.
Retention and disposal: Retained indefinitely.
System manager(s) and address:
Director of Personnel
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Notification procedure: Inquiries, including
name, date of birth, and social security numbers
should be addressed to the System Manager,
address above.
Record access procedures: Current and former
System employees who wish to gain access to and
contest their records, should direct such a request
in writing, including their name, date of birth, and
social security number to the System Manager,
address above.
Record source categories: Information in this
system of records comes from either the individual
to whom it applies, extracted from documents he
supplied, or data provided by Federal Reserve
System officials and employees.
Systems exempted from certain provisions of
the Act: None.

534

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

B G FR S— 13
System name: FRB— General File of Examiners
at Federal Reserve Banks.
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Past and present examiners and assistant
examiners at Federal Reserve Banks.
Categories of records in the system: Brief
biographies of past and present examiners and
assistant examiners, oaths of office, and miscel­
laneous correspondence.
Authority for maintenance of the system:
Section 11 of the Federal Reserve Act (12 U .S.C.
Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Used as background in­
formation for determining qualifications for ap­
pointment, reappointment, etc.; for compiling in­
formation for news releases and other publications,
and recording correspondence concerning such
persons.
Policies and practices for storing, accessing,
retaining, and disposing of records in the sys­
tem:
Storage: Paper records.
Retrievability: Indexed by name.
Safeguards: Locked in diebold power file.
Access limited to Board staff on a restricted basis.
Retention and disposal: Indefinite.
System manager(s) and address:
Secretary of the Board
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: System Manager, as
indicated above.
Record access procedures: Same as “ notifica­
tion” above.
Record source categories: Individuals them­
selves, references such as “ Who’s Who” and
miscellaneous correspondence from System per­
sonnel and others.
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(5) of the
Privacy Act and the Board’s regulations relating
thereto, certain portions of this system of records




may be exempted from certain provisions of the
Act where such portions represent investigatory
material compiled solely for the purpose of deter­
mining suitability, eligibility, or qualifications for
Board employment to the extent that disclosure
of such portions would reveal the identity of a
source who furnished information under a promise
of confidentiality.
BG FR S— 14
System name: FRB— General File of Federal Re­
serve Bank and Branch Directors.
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Past and present Federal Reserve Bank and
Branch Directors.
Categories of records in the system: Biogra­
phies of past and present Federal Reserve Bank
and Branch Directors, oaths of office, resignations,
and miscellaneous correspondence.
Authority for maintenance of the system:
Sections 3, 4 and 11 of the Federal Reserve Act
(12 U .S.C . Sec. 221 et seq.).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Used as background in­
formation for determining qualifications for ap­
pointment, reappointment, etc,; for compiling in­
formation for news releases and other publications,
and recording correspondence concerning such
persons.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Paper records.
Retrievability: Indexed by name.
Safeguards: Locked in diebold power file.
Access limited to Board staff on a restricted basis.
Retention and disposal: Retained indefinitely.
System manager(s) and address:
Secretary of the Board
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Notification procedure: Same as System Man­
ager, address above.
Record access procedures: Same as System
Manager, address above.

L a w D e p a r tm e n t

Record source categories: Generated by indi­
viduals’ incoming correspondence and staff re­
sponse thereto.
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(5) of the
Privacy Act and the Board’s regulations relating
thereto, certain portions of this system of records
may be exempted from certain provisions of the
Act where such portions represent investigatory
material compiled solely for the purpose of deter­
mining suitability, eligibility, or qualifications for
Board employment to the extent that disclosure
of such portions would reveal the identity of a
source who furnished information under a promise
of confidentiality.
BG FR S— 15
System name: FRB— General Files of Federal
Reserve Agents, Alternates and Repre­
sentatives at Federal Reserve Banks.
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Past and present Federal Reserve Agents,
Alternates and Representatives at Federal Reserve
Banks.
Categories of records in the system: Biogra­
phies of past and present examiners, oaths of office
and miscellaneous correspondence relating to such
persons.
Authority for maintenance of the system:
Sections 20 and 21 of the Federal Reserve Act
(12 U .S.C . Sec. 221 et seq.).
Routine uses of records maintained in the
system , including categories of users and the
purposes of such uses: Used as background in­
formation for determining qualifications for ap­
pointment, reappointment, etc.; for completing
information for news releases and other corre­
spondence; and recording correspondence con­
cerning such persons.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Paper records.
Retrievability: Indexed by name.
Safeguards: Locked in diebold power file.
Access limited to Board staff on a restricted basis.
Retention and disposal: Retained indefinitely.




535

System manager(s) and address:
Secretary of the Board
Board of Governors
Federal Reserve System
20th and Constitution, N.W.
Washington, D.C. 20551
Notification procedure: Same as System Man­
ager, address above.
Record access procedures: Same as System
Manager, address above.
Record source categories: Generated by indi­
viduals’ incoming correspondence and staff re­
sponse thereto.
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(5) of the
Privacy Act and the Board’s regulations relating
thereto (12 CFR 261a), certain portions of this
system of records may be exempted from certain
provisions of the Act where such portions repre­
sent investigatory material compiled solely for the
purpose of determining suitability, eligibility, or
qualifications for Board employment to the extent
that disclosure of such portions would reveal the
identity of a source who furnished information
under a promise of confidentiality.
BG FR S— 16
System name: FRB— Regulation G Reports
System location:
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Categories of individuals covered by the sys­
tem: Individuals other than banks, brokers and
dealers who extend credit in specified amounts
secured by margin securities.
Categories of records in the system: Reports
filed by persons registered pursuant to Regulation
G.
Authority for maintenance of the system:
Sections 7, 17, and 23 of the Securities Exchange
Act of 1934 and Regulation G (12 CFR 207).
Routine uses of records maintained in the
system, including categories of users and the
purposes of such uses: Aid the Federal Reserve
System in securing compliance with Regulation G,
assist registrants regarding interpretation, and
where this system indicates a violation or potential
violation of the law, whether civil, criminal or
regulatory in nature, and whether arising by gen­
eral statute or particular program statute, or by

536

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

regulation, rule or order issued pursuant thereto,
the revelant records in the system of records may
be referred, as a routine use, to the appropriate
agency, whether Federal, State, local, or foreign,
charged with the responsibility of investigating or
prosecuting such violation, or charged with en­
forcing or implementing the statute, or rule, regu­
lation or order issued pursuant thereto.
Policies and practices for storing, retrieving,
accessing, retaining, and disposing of records
in the system:
Storage: Paper forms and files.
Retrievability: Indexed by name.
Safeguards: Retained in locked metal file cabi­
nets. Access to Board staff on restricted basis.
Retention and disposal: Retained indefinitely.
System manager(s) and address:
Director, Office of
Saver and Consumer Affairs
Board of Governors
Federal Reserve System
Washington, D.C. 20551
Notification procedure:
Secretary of the Board
Board of Governors
Federal Reserve System
20th and Constitution, N.W .
Washington, D.C. 20551
Record access procedures: Same as System
Manager, address above.
Record source categories: Reports and forms
filed by individuals to whom records pertain.
Systems exempted from certain provisions of
the Act: Pursuant to subsection (k)(2) of the
Privacy Act and the Board’s regulations relating
thereto (12 CFR 261a) certain portions of this
system of records may be exempted from certain
provisions of the Act where such portions repre­
sent investigatory material compiled for law en­
forcement purposes.

R ules R egarding
D elegation of A uthority
The Board of Governors has amended its Rules
Regarding Delegation of Authority to delegate to
the Director of the Division of Banking Supervi­
sion and Regulation the authority under the provi­
sions of section 17A(c)(3)(C) of the Securities
Exchange Act of 1934, as amended, to withdraw
or cancel by order certain transfer agent regis­
tration.




Effective May 10, 1976, paragraph (c) of sec­
tion 265.2 is amended by adding subparagraph
(18) as follows:

S e c tio n 2 6 5 .2 — S p e c ific
F u n c tio n s D e le g a te d to B o a r d
E m p lo y e e s a n d to F e d e r a l R e s e r v e B a n k s

(c) The Director of the Division of Banking
Supervision and Regulation (or in his absence
the Acting Director) is authorized:

(18) Under the provisions of section
17A(c)(3)(C) of the Securities Exchange Act of
1934, as amended, (15 U .S.C . § 78q- 1(c)(3)(C))
to withdraw or cancel the transfer agent regis­
tration of a member State bank or a subsidiary
thereof, a bank holding company, or a subsidiary
bank of a bank holding company that is a bank
as defined in section 3(a)(6) of the Act (other than
a bank specified in clause (i) or (iii) of section
3 ( a ) ( 3 4 ) ( B ) o f the A ct (15 U .S .C . §
78c(c)(a)(34)(B)) that has filed a written notice of
withdrawal with the Board or upon a finding that
such transfer agent is no longer in existence or
has ceased to do business as a transfer agent.
F ederal O pen M arket C ommittee
R ules R egarding
A vailability of Inform ation
At its meeting on May 18, 1976 the Federal
Open Market Committee decided to reduce the
delay in publication of records of policy actions
taken at its monthly meetings. Incident to this
action, the Committee amended § 271.5(a) of its
Rules Regarding Availability of Information by
deleting the second sentence.
Effective May 18, 1976, section 271.5(a) is
amended to read as follows:

S e c tio n 2 7 1 .5 — D e f e r m e n t o f
A v a ila b ility o f C e rta in In fo rm a tio n
(a) Deferred availability of information.— In
some instances, certain types of information of the
Committee are not published in the Federal Regis­
ter or made available for public inspection or
copying until after such period of time as the
Committee may determine to be reasonably nec­

L a w D e p a r tm e n t

essary to avoid the effects described in paragraph
(b) of this section or as may otherwise be necessary
to prevent impairment of the effective discharge
of the Committee’s statutory responsibilities.

Interpretation of R egulation Y
A ctin g as underwriter (reinsurer) fo r credit life
and credit accident and health (disability) insur­
ance— assuring continuing public benefits . Under

the provisions of Section 4(c)(8) of the Bank
Holding Company Act of 1956, as amended
[“ Act” ] (12 U .S.C . §1843), a bank holding com­
pany may acquire shares of any company the
activities of which the Board after due notice and
opportunity for hearing has determined (by order
or regulation) to be so closely related to banking
or managing or controlling banks as to be a proper
incident thereto. In making its determination, the
Board is required to consider whether the per­
formance of a particular activity by an affiliate
of a holding company can reasonably be expected
to produce benefits to the public that outweigh
possible adverse effects.
On December 11, 1972, pursuant to this au­
thority, the Board amended its Regulation Y, by
adding section 225.4(a)(10), to authorize as a
permissible activity for bank holding companies
the underwriting of credit life insurance and credit
accident and health insurance that is directly re­
lated to extensions of credit by the bank holding
company system. In authorizing this activity, the
Board, in a footnote to section 225.4(a)(10) of
Regulation Y (fn. 7), stated:
To assure that engaging in the underwriting of
credit life and credit accident and health insurance
can reasonably be expected to be in the public
interest, the Board will only approve applications
in which an applicant demonstrates that approval
will benefit the consumer or result in other public
benefits. Normally such a showing would be made
by a projected reduction in rates or increase in
policy benefits due to bank holding company per­
formance of this service.

In the course of considering a recent application,
the Board became aware of pending legislation in
the applicant’s State that, if adopted, would pro­
vide new, lower premium rate standards applicable
to the sale of such credit-related insurance. Be­
cause the applicant had already proposed, as one
of the public benefits of its application, that it
would offer premium rates below the then-existing
State rates generally being charged by others,




537

enactment of the legislation would have had the
effect of nullifying the proposed public benefits
unless the applicant were to commit to lower its
rates, concurrently, so as to assure the continuation
of meaningful public benefits. Accordingly, the
Board’s Order granting the application made clear
that the applicant’s obligation to offer lower rates
was a continuing one.
While the Board does assure that such a public
benefit exists at the time of approval of a credit
insurance underwriting application, the Board is
also concerned that this public benefit be main­
tained on a continuing basis, not only by new
applicants, but by those applicants who have
heretofore received approval of such applications.
In the event that a State’s insurance regulations
were amended to provide for new premium rate
standards that would establish new, and possibly
lower, prim a facie rates, it is possible that the
public benefit involved in a previously approved
application could be nullified unless the bank
holding company, in light of such new premium
rate standards, continued to offer this insurance
to their customers at reduced rates. The Board
believes that without such a continuing public
benefit, a bank holding company’s continuing to
engage in the activity of underwriting credit insur­
ance would be contrary to the requirements of the
Act. In order to avoid such a situation, the Board
has interpreted section 4(c)(8) of the Act and
section 225.4(a)(10) of Regulation Y and its ac­
companying footnote as imposing a continuing
obligation upon all bank holding companies au­
thorized to underwrite such credit insurance pur­
suant to section 4(c)(8) of the Act and the Board’s
Regulation Y, to maintain a public benefit such
as was anticipated and considered by the Board
at the time of the original approval of each appli­
cation, and was envisioned by the Board when
this activity was adopted as a permissible non­
banking activity under section 4(c)(8) of the A ct.1

1It should be noted that every Board Order granting approval
under section 4(c)(8) of the Act contains the following para­
graph:
This determination is subject . . . to the Board’s authority
to require such modification or termination of the activities
of a holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board’s
regulations and orders issued thereunder, or to prevent
evasion thereof.
The Board believes that, even apart from this Interpretation,
this language preserves the authority of the Board to require
the revisions contemplated in this Interpretation.

538

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

B ank H olding C ompany and B ank M erger O rders I ssued by the B oard of G overnors
O rders U nder Section 3
of B ank H olding C om pany A ct

F irs t B a n c G ro u p , I n c .,
C re v e C o e u r, M iss o u ri
O rder A pprovin g A cquisition of Bank

First Banc Group, Inc., Creve Coeur, Missouri,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board’s approval under § 3(a)(3) of the Act
(12 U .S.C . § 1842(a)(3)) to acquire 50 per cent
or more of the voting shares of American State
Bank of Flat R iver, Flat R iver, M issouri
(“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U .S.C .
§ 1842(c)).
Applicant, the eighteenth largest banking orga­
nization in Missouri, controls five banks with
aggregate deposits of $92.0 million, representing
approximately .57 per cent of the total deposits
in commercial banks in the State.1 Acquisition of
Bank (deposits of $16.0 million) would increase
Applicant’s share of commercial bank deposits in
Missouri by . 1 per cent and would have no appre­
ciable effect upon the concentration of banking
resources in Missouri.
Bank, the third largest of seven banks in the
relevant market,2 holds approximately 17.1 per
cent of total market deposits. Applicant has no
banking office in the relevant market, and the
nearest office of any of Applicant’s subsidiary
banks to any office of Bank is approximately 42
miles.
No meaningful competition presently exists be­
tween any of Applicant’s subsidiary banks and
Bank, and it appears unlikely that such competi­
tion would develop in the future in view of the
distances involved. Moreover, the population and
economic characteristics do not indicate that the

1Banking data are as of June 30, 1975.
2The relevant banking market is approximated by St. Fran­
cois County plus the town of Fredericktown in northern Mad­
ison County.




relevant area is especially attractive for de novo
entry. Accordingly, on the basis of the facts of
record, the Board concludes that competitive con­
siderations are consistent with approval of the
application.
The financial condition, managerial resources,
and future prospects of Applicant and its present
and proposed subsidiaries are regarded as gener­
ally satisfactory and consistent with approval even
though Applicant will incur debt as a result of this
acquisition. It appears that the proposed affiliation
of Bank with Applicant is likely to result in an
expansion of the services presently offered by
Bank. Considerations relating to the convenience
and needs of the community to be served, there­
fore, lend some weight toward approval of the
application. It is the Board’s judgment that the
proposed acquisition would be in the public inter­
est and that the application should be approved.
On the basis of the record in the case,3 the
application is approved for the reasons sum­
marized above. The transaction shall not be made
(a) before the thirtieth calendar day following the
effective date of this Order or (b) later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board, or by the Federal Reserve Bank of St.
Louis pursuant to delegated authority.
By order of the Board of Governors, effective
May 3, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Holland, Wallich, Coldwell, and Partee.
Absent and not voting: Chairman Burns and Governor
Jackson.
[ s e a l]

(Signed) J. P. G a r b a r in i,
A ssistan t Secretary of the B oard.

3In its consideration of the subject application, the Board
also considered the comments submitted on behalf of a share­
holder of Bank. Having examined such submissions, the Board
is of the view that, based upon the entire record, the arguments
put forth by the protestant are not sufficient to warrant denial
of the application.

C e n tra l W is c o n s in B a n k s h a re s , I n c .,
W a u s a u , W is c o n s in
O rder D enying A cquisition of Bank

Central Wisconsin Bankshares, Inc., Wausau,
Wisconsin, a bank holding company within the

L a w D e p a r tm e n t

meaning of the Bank Holding Company Act, has
applied for the Board’s approval under § 3(a)(3)
of the Act (12 U .S.C . 1842(a)(3)) to acquire 80
per cent or more of the voting shares of Central
National Bank of Wausau, Wausau, Wisconsin
(“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received, including
those submitted by Peoples State Bank, Wausau,
Wisconsin, in light of the factors set forth in §
3(c) of the Act (12 U .S.C . 1842(c)).
Applicant, the eleventh largest commercial
banking organization in Wisconsin, controls two
subsidiary banks with aggregate deposits of ap­
proximately $132 million, representing 0.9 per
cent of the total deposits in commercial banks in
the State.1 Applicant’s acquisition of Bank would
increase Applicant’s share of State deposits by
0.04 per cent and would not result in a significant
increase in the concentration of banking resources
in Wisconsin. However, as discussed below, con­
summation of the proposal would have some ad­
verse effects on concentration in the relevant
banking market.
Bank has deposits of approximately $6.2 mil­
lion, representing 2.5 per cent of the total deposits
in commercial banks in the relevant banking mar­
ket,2 and is the smallest of seven banks operating
in that market. Applicant’s lead bank, First Amer­
ican National Bank of Wausau, is the largest bank
operating in the relevant market and has deposits
of $120.5 million, representing approximately 49
per cent of the total deposits in commercial banks
in the market.
Applicant is the largest banking organization in
the Wausau RMA banking market, controlling
approximately 53 per cent of the total deposits in
commercial banks in the market. The second and
third largest banking organizations in the market
control, respectively, approximately 14 and 10 per
cent of the market’s deposits. Thus, it appears that
Applicant is a dominant factor in this banking
market which is regarded as a highly concentrated
market. Consummation of the proposed acquisi­

1A\l banking data are as of June 30, 1975.
2 The relevant banking market is approximated by the Wau­
sau RMA.




539

tion would increase Applicant’s share of the total
commercial bank deposits in this market to ap­
proximately 55 per cent, and would result in a
further increase in the concentration of banking
resources in the market. The Board regards this
as an adverse factor lending weight toward denied
of the proposal.
The Board notes that there already exists com­
mon ownership and management between Appli­
cant and Bank,3 and Applicant aruges that this fact
mitigates to some extent the amount of existing
competition that would be eliminated between
Bank and Applicant’s subsidiary banks if this
application were approved. However, the compet­
itive situation that gave rise to the Board’s pre­
vious denial of Applicant’s proposal to acquire
Bank de novo in 1966 has not changed signifi­
cantly over the years, and the structure of the
Wausau banking market has not been altered so
as to warrant a different conclusion with respect
to the adverse effects. Applicant remains the larg­
est banking organization in the market, and the
Board believes that approval of this application
would virtually foreclose the possibility that Bank
may eventually become independent of Applicant
and develop into a more effective competitor in
the Wausau RMA banking market. On the other
hand, denial of the subject acquisition would pre­
serve the possibility that a dissolution of the
affiliation relationship could occur in the future.
Such a dissolution would be likely to result in
increased competition and a deconcentration in the
Wausau banking market. The Board regards this
latter consideration as particularly important be­
cause few independent banks remain available in
this market for acquisition by out-of-area banking
organizations. Thus, the facts of record show that
this proposal offers no positive competitive effects,
but instead, would result in significant adverse
effects upon competition in the relevant banking
market by further increasing the concentration of
banking resources and by eliminating the possi­
bility that increased competition would develop in

3 Bank was organized by several officers and directors of
Applicant. Prior to Bank’s opening, Applicant applied for
Board approval to acquire Bank. Although the Board denied
the application, 52 Fed. Res. Bulletin 29 (1966), Bank
opened for business on April 26, 1967. Currently, various
shareholders of Applicant own 82 per cent of Bank’s shares.
In addition, Applicant’s president is the chairman of the board
of Bank. A director of Applicant also serves as the president
of Bank. Another individual serves as a director of both
Applicant and Bank.

540

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

the future. In the Board’s view, such consid­
erations require denial of the application unless
they are clearly outweighed in the public interest
by other considerations reflected in the record.4
The financial condition, managerial resources
and future prospects of Applicant, its subsidiary
banks, and Bank are satisfactory. Although the
banking factors are consistent with approval of the
application, they provide no significant support for
approval of the application. Applicant states that,
following the consummation of this proposal,
Bank would offer to its customers trust and payroll
services, and would extend its banking hours.
While these improved services lend some weight
toward approval, the Board does not consider these
convenience and needs considerations sufficient to
outweigh the anticompetitive effects of the appli­
cation described above. Accordingly, it is the
Board’s judgment that approval of the proposed
acquisition would not be in the public interest and
the application should be denied.
On the basis of the record, the application is
denied for the reasons summarized above.
By order of the Board of Governors, effective
May 26, 1976.
Voting for this action: Chairman Burns and Gover­
nors Gardner, Coldwell, Jackson, and Partee. Absent
and not voting: Governor Wallich.
[s e a l]

(Signed) G r i f f i t h L. G a r w o o d ,
A ssistan t Secretary of the Board.

4The Board’s conclusion as to the effects on competition
of the subject proposal are similar to its findings in the Order
denying Applicant’s previous application to acquire Bank, cited
above.

C le v e T ru s t C o rp o ra tio n ,
C le v e la n d , O h io
O rder A pprovin g A cquisition of Bank

CleveTrust Corporation, Cleveland, Ohio
( “ Applicant” ), a bank holding company within
the meaning of the Bank Holding Company Act,
has applied for the Board’s approval under §
3(a)(3) of the Act (12 U .S.C . 1842(a)(3)) to ac­
quire all of the voting shares (less directors’ quali­
fying shares) of the successor by merger to The
Savings Deposit Bank Company, Medina, Ohio
(“ Bank” ). The bank into which Bank is to be
merged has no significance except as a means to
facilitate the acquisition of the voting shares of




Bank. Accordingly, the proposed acquisitihn of
shares of the successor organization is treated
herein as the proposed acquisition of the shares
of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U .S.C .
1842(c)).
Applicant, the largest banking organization in
Ohio, controls eight banks with aggregate deposits
of approximately $3.2 billion, representing 10.8
per cent of the total deposits in commercial banks
in the State.1 Acquisition of Bank (deposits of
$18.3 million) would increase Applicant’s share
of Statewide deposits by only 0.06 per cent, and
would have no appreciable effect upon the con­
centration of banking resources in Ohio.
Bank, which is located in the city of Medina
about 25 miles south of downtown Cleveland,
competes on the fringe of the Cleveland banking
market2 and controls about 0.2 per cent of total
market deposits.3 Some 37 banking organizations
(including Ohio’s eight largest) with a total of 432
banking offices, compete in the Cleveland banking
market. Applicant is the largest banking organi­
zation in the market and holds approximately 31.1
per cent of market deposits. Bank is one of the
smaller banking organizations in the Cleveland
market and ranks 26th among the banking organi­
zations in that market. Thus, in view of Bank’s
relative size (Bank also ranks only 5th out of 9
banks in Medina County), its acquisition by Ap­
plicant would increase only slightly Applicant’s
market share and the concentration of deposits in
Cleveland. However, the evidence of record shows
that the Cleveland banking market has become less
concentrated over time.4 Applicant’s banking sub­

1Unless otherwise indicated, all banking data are as of
September 30, 1975, and reflect bank holding company forma­
tions and acquisitions approved through April 30, 1976.
2The Cleveland banking market, which is the relevant bank­
ing market, is approximated by all of Cuyahoga, Lake and
Geauga Counties, the northwestern quarter of Portage County,
the northern third of Summit County, all but the southern-most
tier of townships in Medina and Lorain Counties (which appear
to have stronger ties to Akron) and the City of Vermilion which
straddles the border of Lorain and Erie Counties.
3All market data are as of June 30, 1974.
4During the period June 1968 to June 1974, the deposit share
of the four largest banking organizations in the Cleveland
banking market declined from 77.8 per cent to 72.3 per cent.

L a w D e p a r tm e n t

sidiary closest to Bank is located 11.4 miles north
of Bank, in Cuyahoga County, and is separated
from Bank by a number of intervening banking
offices. Even though Applicant and Bank operate
in the same market, the facts of record show there
is no overlap of service areas nor would approval
result in the elimination of any significant amount
of existing competition.
In assessing the effects of the proposal on po­
tential competition, the Board is of the view that
although Applicant may possess the capabilities
to enter Medina County de novo and acquisition
of Bank would eliminate one independent banking
alternative in the relevant market, there are several
other facts of record which mitigate these slightly
adverse competitive effects. Ohio’s restrictive
branching law, which limits branching to home
office counties, prohibits Applicant’s present sub­
sidiaries from branching into the Medina County
portion of the market; moreover, it appears un­
likely that Applicant would enter Medina County
de novo since its population and deposits-perbanking-office ratios are w ell below State
averages. Furthermore, following approval, there
would remain 19 other independent banks as pos­
sible entry points into the market for competitors.
Accordingly, it is concluded that consummation
of the proposal would have only slightly adverse
effects on potential competition.
However, the Board’s inquiry does not end
here. Under the provisions of § 3(c) of the Bank
Holding Company Act of 1956, as amended, the
Board must determine whether these anticompeti­
tive effects are outweighed by other positive con­
siderations reflected in the record such as financial
and managerial resources and future prospects of
Applicant and Bank or the convenience and needs
of the communities to be served.
The financial and managerial resources and fu­
ture prospects of Applicant and its subsidiaries are
regarded as satisfactory. However, while the fi­
nancial resources of Bank are satisfactory, its net
earnings have been declining over time (from 1971
to 1975).5 Furthermore, Bank appears to possess
limited managerial resources. Affiliation with Ap­
plicant will result in the strengthening of Bank’s
financial and managerial base. Therefore, banking
factors lend weight toward approval. Moreover,

5 In 1974, the average percentage of net income to total assets
for member banks in the Fourth District of the same depositsize group was 1.1 per cent, while the figure for Bank was
0.45 per cent.




541

Bank’s physical plant appears to be somewhat
inadequate. Affiliation with Applicant will result
in a remodeling and modernizing of Bank’s physi­
cal plant. Other benefits to be derived from affilia­
tion are that Applicant would enable Bank to
expand and improve the range of banking services
presently offered to Bank’s customers. Applicant
has also indicated it will make available to Bank,
and Bank’s customers, equipment leasing, trust
management services, accounts receivable financ­
ing, and data processing services for maintaining
account records. The Board concludes, therefore,
that considerations relating to the convenience and
needs of the community to be served outweigh
the slight anticompetitive effects of the proposal.
Accordingly, it is the Board’s judgment that the
proposed acquisition would be in the public inter­
est and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thir­
tieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Cleveland pursuant
to delegated authority.
By order of the Board of Governors, effective
May 10, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Wallich and Jackson. Voting against this
action: Governor Coldwell. Absent and not voting:
Chairman Burns and Governors Holland and Partee.
[ s e a l]

(Signed) G r i f f i t h L. G a r w o o d ,
A ssistan t Secretary of the B oard.

S o u th w e st F lo rid a B a n k s , I n c .,
F o rt M y e rs , F lo rid a
O rder A pprovin g A cquisition of Bank

Southwest Florida Banks, Inc., Fort Myers,
Florida, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board’s approval under § 3(a)(3)
of the Act (12 U.S.C . § 1842(a)(3)) to acquire
80 per cent or more of the voting shares of First
National Bank and Trust Company of Naples,
Naples, Florida (“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)

542

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U .S.C .
§ 1842(c)).
Applicant, the seventeenth largest banking or­
ganization in Florida, controls eight banks with
aggregate deposits of approximately $284 million,
representing 1.2 per cent of the total deposits in
commercial banks in the State.1 Applicant’s ac­
quisition of Bank would increase Applicant’s share
of total State deposits by 0.3 per cent and would
not result in a significant increase in the concen­
tration of banking resources in the State. Upon
consummation of the subject proposal, Applicant
would become the 16th largest banking organi­
zation in Florida.
Bank holds deposits of approximately $68.5
million, representing 29.1 per cent of the total
deposits in commercial banks operating in the
Naples banking market, and ranks as the second
largest of eight banks in the market.2 Applicant
does not have a subsidiary bank in the relevant
market, although an office of one of Applicant’s
subsidiary banks is located in an adjacent banking
market. It appears that no meaningful competition
presently exists between any of Applicant’s sub­
sidiary banks and Bank, nor do the facts of record
indicate that such competition is likely to develop
in the foreseeable future. Moreover, it appears
unlikely that Applicant would expand de novo into
the Naples banking market since the population
per banking office ratio of the market is well below
the respective State average. In addition, Appli­
cant has committed to terminate four interlocking
directorships between Bank and Vanderbilt Bank,
Naples, Florida, within 30 days of Bank’s acqui­
sition. This should have a salutary effect on com­
petition in the market. On the basis of the entire
record, the Board concludes that consummation
of the subject proposal would not have any signif­
icant adverse effecs on existing or potential com­
petition in any relevant area and that the competi­
tive considerations are consistent with approval of
the application.

The financial and managerial resources of Ap­
plicant, its subsidiaries and Bank are considered
to be generally satisfactory and the future pros­
pects for each appear favorable. Thus, the banking
factors are consistent with approval. Bank’s
affiliation with Applicant should enable Bank to
offer expanded and improved services by drawing
on Applicant’s expertise and resources. These
considerations relating to the convenience and
needs of the community to be served Jend some
weight toward approval of the application. Ac­
cordingly, it is the Board’s judgment that con­
summation of the proposal to acquire Bank would
be in the public interest and that the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thir­
tieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Atlanta pursuant to
delegated authority.
By order of the Board of Governors, effective
May 19, 1976.
Voting for this action: Chairman Burns and Gover­
nors Gardner, Wallich, Coldwell, and Partee. Absent
and not voting: Governor Jackson.
[ s e a l]

(Signed) G r i f f i t h L. G a r w o o d ,
A ssistan t Secretary of the B oard.

O rders U nder Section 4
of B ank H olding C om pany Act

C e n tra l M o rtg a g e B a n c s h a re s , I n c .,
W a rre n s b u rg , M is s o u ri
O rder A pprovin g
Acquisition o f Cenco Insurance Company

Central Mortgage Bancshares, Inc., Warrens­
burg, Missouri, a bank holding company within
the meaning of the Bank Holding Company Act,
has applied for the Board’s approval, under §
4(c)(8) of the Act and § 225.4(b)(2) of the Board’s
Regulation Y, to acquire direct or indirect owner­
1 All banking data are as of June 30, 1975, and represent
ship or control of all of the voting shares of Cenco
holding company formations and acquisitions approved by the
Insurance Company (“ Cenco” ), Phoenix, Ari­
Board through April 30, 1976.
2The Naples banking market, the relevant geographic market
zona. Cenco would engage de novo in the activity
for purposes of analyzing the competitive effects of this pro­
of underwriting, as reinsurer, credit life and credit
posal, is approximated by all of Collier County, Florida,
accident and health insurance directly related to
excluding therefrom the town of Immokalee.




L a w D e p a r tm e n t

extensions of credit by Applicant’s subsidiary
banks: Barton County State Bank, Lamar, Mis­
souri; Citizens Bank of Warrensburg M o., Warrensburg, Missouri; Farmer’s Bank of Stover,
Stover, Missouri; and Jackson County State Bank,
Kansas City, Missouri, (“ Banks” ). Such activity
has been determined by the Board to be closely
related to banking (12 CFR 225.4(a)(10)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (41 Federal Register 826 (1976)). The
time for filing comments and views has expired,
and the Board has considered the application and
all comments received in the light of the public
interest factors set forth in § 4(c)(8) of the Act
(12 U .S.C . 1843(c)(8)).
Applicant, the twenty-seventh largest banking
organization in Missouri, controls four subsidiary
banks with aggregate deposits of approximately
$62 million, representing about 0.4 per cent of
the total deposits in commercial banks in the
State.1
Cenco’s activities will be limited to acting as
reinsurer of credit life and credit accident and
health insurance directly related to extensions of
credit by Banks. Cenco will be formed as an
Arizona insurance corporation and will be quali­
fied to underwrite insurance directly only in Ari­
zona. Accordingly, the insurance sold by Appli­
cant’s subsidiary banks will be directly underwrit­
ten by an unaffiliated insurance company qualified
to do business in Missouri, and will thereafter be
assigned or ceded to Cenco under a reinsurance
agreement. Since this proposal involves a de novo
acquisition, consummation of the transaction
would not have any adverse effects on existing
or potential competition in any relevant market.
Credit life and credit accident and health insur­
ance are generally made available by banks and
other lenders and are designed to assure repayment
of a loan in the event of death or disability of
the borrower. In connection with its addition of
the underwriting of such insurance to the list of
permissible activities for bank holding companies,
the Board stated:
To assure that engaging in
credit life and credit accident
can reasonably be expected
interest, the Board will only

the underwriting of
and health insurance
to be in the public
approve applications

1A ll banking data are as o f June 3 0 , 1975.




543

in which an applicant demonstrates that approval
will benefit the consumer or result in other public
benefits. Normally, such a showing would be made
by a projected reduction in rates or increase in
policy benefits to bank holding company perform­
ance of this service. (12 CFR §225.4(a)(10) n. 7).

Applicant has stated that following consumma­
tion of the acquisition, Cenco will offer at reduced
premiums the several types of credit insurance
policies that it will reinsure. Cenco will offer
decreasing term credit life insurance on instalment
loans and level term credit life insurance on single
payment loans at a premium rate 15 per cent below
the statutory maximum allowable rates in Mis­
souri. Applicant also proposes that Cenco will
offer a 5 per cent reduction on the premium rate
its subsidiary banks charge for credit accident and
health insurance.
The Board notes that proposed legislation had
been pending in the State of Missouri which, if
adopted, would have reduced the maximum al­
lowable rates for credit life and credit accident and
health insurance. In order to ensure that Appli­
cant’s proposal would provide a continuing benefit
to the public should such legislation ever become
effective, Applicant further committed that Cenco
would reduce its rates below the maximum levels
established by the new legislation by amounts
which would be consistent with rate reductions
previously approved by the Board in connection
with applications involving premium rate struc­
tures comparable to those which would be adopted
in Missouri. The Board is of the view that the
reductions in insurance premiums that Applicant
proposes to establish are, and will continue to be,
in the public interest.
Based upon the foregoing and other consid­
erations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
§4(c)(8) is favorable. Accordingly, the application
is hereby approved. This determination is subject
to the conditions set forth in §225.4(c) of Regula­
tion Y and to the Board’s authority to require such
modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with
the provisions and purposes of the Act and the
Board’s regulations and orders issued thereunder
or to prevent evasion thereof.
The transaction shall be made not later than
three months after the effective date of this Order
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of

544

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

Kansas City pursuant to authority hereby dele­
gated.
By order of the Board of Governors, effective
May 14, 1976.

lumbus National Bank, with deposits of $3.1 mil­
lion, representing approximately 0.1 of one per
cent of the total commercial bank deposits in North
Dakota.2 Upon Applicant’s formation in N o­
vember 1968, Company was acquired by Appli­
Voting for this action: Vice Chairman Gardner and
cant. Presently, Company competes with several
Governors Holland, Jackson, and Partee. Absent and
other insurance agencies located in the relevant
not voting: Chairman Burns and Governors Wallich and
Coldwell.
market which is approximated by the northern half
of Burke County and the northeastern corner of
(Signed) G r i f f i t h L. G a r w o o d ,
Divide
County. Following its acquisitions of
[ s e a l]
A ssistan t Secretary of the Board.
Forthun Agency and Darras Agency, Company
became the only general insurance agency in Co­
lumbus. However, the evidence of record shows
D a k o ta B a n c o rp o ra tio n
that at the time of acquisition Forthun Agency and
R a p id C ity , S o u th D a k o ta
Darras Agency were small in the relevant market
O rder A pprovin g
and they were not particularly strong competitors.
Retention of Insurance A gency A ctivities
Thus, it is the Board’s judgment that whatever
slight adverse competitive effects might have re­
Dakota Bancorporation, Rapid City, South Da­
sulted, these are outweighed by the public benefits
kota (“ Applicant” ), a bank holding company
resulting from Applicant’s retention of Company
within the meaning of the Bank Holding Company
which would assure the residents of Columbus of
Act (“ Act” ), has applied for the Board’s ap­
the continued availability of a convenient source
proval, under section 4(c)(8) of the Act (12 U.S.C.
of general insurance agency activities. The
§ 1843(c)(8)) and section 225.4(b)(2) of the
Board’s
review of the record of the affiliation
Board’s Regulation Y (12 CFR §225.4(b)(2)), to
indicates
that the benefits have continued to out­
continue to engage in the activity of a general
weigh
such
slight adverse effects.
insurance agency, through Columbus Insurance
There is no evidence in the record indicating
Agency (“ Company” ) ,1 in Columbus, North Da­
that retention of Company would result in any
kota, a community having a population not ex­
undue
concentration of resources, unfair competi­
ceeding 5,000. Such activity has been determined
tion,
conflicts
of interests, unsound banking prac­
by the Board to be closely related to banking (12
tices or other adverse effects on the public interest.
CFR §225.4(a)(9)(iii)(a)).
In accord with the Board’s position with respect
Notice of the application, affording opportunity
to
violations of the Act, the Board has scrutinized
for interested persons to submit comments and
the underlying facts surrounding the acquisition of
views on the public interest factors, has been duly
the assets of Forthun Agency and Darras Agency
published (41 Federal Register 11363). The time
without the Board’s prior approval. Upon an ex­
for filing comments and views has expired, and
amination of all the facts of record, the Board
the Board has considered the application and all
believes that the facts surrounding the violations
comments received in the light of the public inter­
in this case are not such as would call for denial
est factors set forth in section 4(c)(8) of the Act.
of
this application.
The Board regards the standards of section
Based
upon the foregoing and other consid­
4(c)(8) to be as applicable to the retention of a
erations reflected in the record, the Board has
“ ten year grandfathered” activity as to a proposed
determined that the balance of the public interest
section 4(c)(8) acquisition.
factors the Board is required to consider under
Applicant controls one banking subsidiary, Co­
section 4(c)(8) is favorable. Accordingly, the ap­
plication is hereby approved. This determination
1 Applicant indirectly acquired without Board approval the is subject to the conditions set forth in section
225.4(c) of Regulation Y and to the Board’s au­
assets of Forthun Agency (in January 1971) and Darras Agency
(in September 1973), both general insurance agencies located
thority to require such modification or termination
in Columbus, North Dakota. Acquisition of the assets of
of the activities of a holding company or any of
Forthun Agency did not require Board approval by virtue of
the provisions of §225.4(d) of Regulation Y. Furthermore, it
appears from the facts of record that the acquisition of the
assets of Darras Agency was based on a bona fide misinterpre­
tation of applicable statutes and regulations.




2 A ll banking data are as of June 3 0 , 1975.

L a w D e p a r tm e n t

its subsidiaries as the Board finds necessary to
assure compliance with the provisions and pur­
poses of the Act and the Board’s regulations and
orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
May 17, 1976.
Voting for this action: Chairman Burns and Gover­
nors Gardner, Wallich, Coldwell, Jackson, and Partee.
[ s e a l]

(Signed) G r i f f i t h L. G a r w o o d ,
A ssistan t Secretary of the Board.

R e p u b lic o f T e x a s C o rp o ra tio n ,
D a lla s , T e x a s
O rder A pprovin g Retention
of The H ow ard Corporation with
R espect to its Lending A ctivities Only

Republic of Texas Corporation, Dallas, Texas,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board’s approval, under Section 4(c)(8) of the
Act and § 225.4(b)(2) of the Board’s Regulation
Y, to continue the lending activities of its trusteed
affiliate, The Howard Corporation, Dallas, Texas
(“ Howard” ). Such activities have been deter­
mined by the Board to be closely related to bank­
ing (12 CFR § 225.4(a)(1)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (41 Federal Register 1331). The time
for filing comments and views has expired, and
the Board has considered the application and all
comments received in the light of the public inter­
est factors set forth in Section 4(c)(8) of the Act
(12 U .S.C . § 1843(c)).
By Order dated October 25, 1973, the Board
approved the formation of Applicant for the pur­
pose of becoming a bank holding company through
the acquisition of Republic National Bank of
Dallas, Dallas, Texas (“ Republic Bank” ) .1
Republic Bank was itself a bank holding company
by virtue of the 1970 Amendments to the Act and
owned various bank and nonbank interests. At the
time of its formation, Applicant also obtained
indirect control of The Howard Corporation. The
Board has previously ruled that Applicant would

*38 Federal R egister 3 0 5 8 0 (N ovem ber 6 , 1973).




545

not be a successor to the grandfather privileges
of Republic Bank, and Applicant has committed,
and is required to dispose of the nonpermissible
activities within the statutory period prescribed in
§ 4(a)(2) of the Act or, in the alternative, to apply
to the Board for approval to retain them. In this
proposal, Applicant has applied to retain the lend­
ing activities of Howard. The Board regards the
standards under § 4(c)(8) of the Act to continue
to engage in activities to be the same as the
standards for a proposed acquisition.
Applicant, the 4th largest banking organization
in Texas, controls three subsidiary banks with
aggregate deposits of approximately $2.8 billion,
representing approximately 6.5 per cent of the total
deposits in commercial banks in the State.2 Appli­
cant received approval from the Federal Reserve
Bank of Dallas, acting pursuant to § 225.4(b)(1)
of the Board’s Regulation Y (12 CFR 225), to
engage de novo in direct lending activities on
August 19, 1974. Effective with that date, Howard
began reducing its loan and commitment activity
and has, in fact, ceased making any new loans
and commitments.
Howard, a group of companies held in trust for
the sole benefit of Applicant, engages in a wide
range of activities.3 A substantial portion of How­
ard’s assets is subject to divestiture under the
provisions of § 4(a)(2) of the Act. This application
seeks Board approval for Howard to retain certain
loans made prior to 1974 and maturing not later
than September 1983. Howard’s current loan
portfolio consists of secured real estate loans,
interim construction loans, home mortgages, se­
cured and unsecured commercial loans, working
capital loans, and personal loans. Since Howard
has already ceased making any new loans and is
no longer an active competitor in any relevant
market, approval of this application would have
no adverse effects on existing or potential compe­
tition in any market. Approval of this application
should enable Applicant to arrange an orderly
disposition of the loans previously made by How­

2Banking data are as of June 30, 1975.
3These activities include ownership of royalty, net profits,
working and other interests in oil and gas properties; ownership
of minority interests in several Dallas-area banks; direct lend­
ing activities; and ownership of a number of nonbank subsidi­
aries conducting activities such as credit life and disability
insurance, the sale of money orders and travelers checks, and
mortgage banking. For a full discussion of Howard’s activities,
see the Board’s determination of Applicant’s grandfather priv­
ileges dated September 10, 1973, 59 Federal Reserve Bulle­
tin 768 (October 1973).

546

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

ard. There is no evidence in the record to indicate
that the proposed continuation of Howard’s lend­
ing activities would lead to an undue concentration
of resources, unfair competition, conflicts of in­
terests, unsound banking practices, or other ad­
verse effects.
Based upon the foregoing and other consid­
erations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under §
4(c)(8) is favorable, and the application should be
approved. Accordingly, the application is hereby
approved. This determination is subject to the
conditions set forth in section 225.4(c) of Regula­

tion Y and to the Board’s authority to require such
modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with
the provisions and purposes of the Act and the
Board’s regulations and orders issued thereunder,
or to prevent evasion thereof.
By order of the Board of Governors, effective
May 18, 1976.
Voting for this action: Chairman Burns and Gover­
nors Gardner, Wallich, Coldwell, Jackson, and Partee.
[ s e a l]

(Signed) G r i f f i t h L. G a r w o o d ,
A ssistan t Secretary o f the B oard.

O rders A pproved U nder B ank H olding C ompany A ct —
B y the Board of G overnors
During May 1976, the Board of Governors approved the applications listed below. The orders have
been published in the Federal Register, and copies are available upon request to Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.

Section 3

A pplican t

Bank(s)

BUYA Corp., Wakefield, Nebraska The Wakefield National Bank
Wakefield, Nebraska
Firstbank, N .A .,
Merrill Bankshares Company,
Farmington, Maine
Bangor, Maine

B oard action
(effective
date)

Federal
R egister
citation

5/3/76

41 F.R. 19263
5/11/76
41 F.R. 22995
6/8/76

5/28/76

Section 4

A pplican t

Commercial National Corporation,
Peoria, Illinois
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin




Nonbanking com pany
(or activity)

Commercial National Life
Insurance Company,
Scottsdale, Arizona
Clayton Mitchell Agency,
Endeavor, Wisconsin and
Darrell J. Schellkopf Agency,
Oxford, Wisconsin

B o a rd action
(effective
date)

Federal
R egister
citation

5/28/76

41 F.R. 22994
6/8/76

5/24/76

41 F.R. 21846
5/28/76

L a w D e p a r tm e n t

547

Sections 3 and 4

A pplican t

Crawford State
Company, Craw­
ford, Nebraska
Sumner County
Bancshares,
Inc., Welling­
ton, Kansas

Woodbine Agency,
Inc., Woodbine,
Kansas

Bank(s)

Crawford
State Bank,
Crawford,
Nebraska
The National
Bank of
Commerce
of Welling­
ton, Welling­
ton, Kansas
The Citizens
State Bank,
Woodbine,
Kansas

B o a rd action
(effective
date)

Federal
R eg ister
citation

Crawford Bank
Agency, Craw­
ford, Nebraska

5/21/76

41 F.R. 21845
5/28/76

Insurance agency
activities

5/14/76

41 F.R. 20929
5/21/76

Insurance agency
activities

5/19/76

41 F.R. 21701
5/27/76

Nonbanking company
(or activity)

By F ederal R eserve Banks
During May 1976, applications were approved by the Federal Reserve Banks as listed below. The
orders have been published in the Federal Register, and copies are available upon request to the Reserve
Bank.
Section 3

A pplican t

Valley of
Virginia
Bankshares,
Inc., Harrison­
burg, Virginia

Bank(s)

The First
National Bank
of Troutville,
Troutville,
Botetourt
County,
Virginia

R eserve
Bank

Effective
date

Richmond

5/4/76

Federal
R eg ister
citation

41 F.R. 193083
5/12/76

Sections 3 and 4

A pplican t

Adair Insurance
Agency, Inc.,
Adair, Iowa




Bank(s)

Exchange
State Bank,
Adair, Iowa

Nonbanking
company
(or activity)

Insurance
agency
activities

R eserve
Bank

Effective
date

Chicago

5/13/76

Federal
R egister
citation

41 F.R. 21410
5/25/76

548

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

O rder A pproved U nder B ank M erger A ct —

A pplican t

Manufacturers Hanover Trust
Company, New York

Bank(s)

Manufacturers Hanover Trust
Company /Mid-Hudson, Monroe,
New York, and Manufacturers
Hanover Trust Company/
Suffolk, National Association,
Bay Shore, New York

B oard action
(effective
date)

Federal
R egister
citation

5/12/76

41 F.R. 20453
5/18/76

P ending C ases I nvolving the B oard of G overnors *
Save N eeded Environm ental L evels League v.
Southern California Com pany, et a l., filed

May 1976, U .S.D .C . for the Central District
of California.
N ational Urban L eagu e, et al. v. Office of the
C om ptroller of the Currency, et a l., filed
April 1976, U .S.D .C . for the District of
Columbia Circuit.
Farmers & M erchants Bank of L as Cruces,
N ew M exico v. B oard of G overnors, filed

April 1976, U .S.C .A . for the District of
Columbia Circuit.
Blackstone Valley N ational Bank v. B oard of
G overnors, filed April 1976, U .S.C .A . for
the First Circuit.
United S tates ex rel. A .R . M artin-Trigona v.
A rthu r F. Burns, et a l., March 1976,
U .S.D .C . for the District of Columbia.
G randview Bank & Trust Com pany v. B oard
of G overnors, filed March 1976, U .S.C .A .
for the Eighth Circuit.
F ederated Capital Corporation v. B oard of
G overnors, filed March 1976, U .S.C .A . for
the District of Columbia.
A ssociation of Bank Travel Bureaus, Inc. v.
B oard of G overnors, filed February 1976,
U .S.C .A . for the Seventh Circuit.
M em phis Trust Com pany v. B oard of G over­
nors, filed February 1976, U .S.D .C . for the
Western District of Tennessee.

*This list of pending cases does not include suits against
the Federal Reserve Banks in which the Board of Governors
is not named a party.




First L incolnw ood C orporation v. B oard of
G overnors, filed February 1976, U .S.C .A .

for the Seventh Circuit.
Helen C. H atten, et al. v. B oard of G overnors,

filed January 1976, U .S.D .C . for the District
of Connecticut.
International Bank v. B oard of G overnors, filed
December, 1975, U .S.C .A . for the District
of Columbia.
R oberts Farms, Inc. v. C om ptroller o f the Cur­
rency, e ta l., filed November 1975, U .S.D .C .
for the Southern District of California.
N ational Com puter A n alysts, Inc. v. D ecim us
Corporation, et a l., filed November 1975,
U .S.D .C . for the District of New Jersey,
t P eter E. Blum v. First N ational Holding C or­
poration, filed November 1975, U .S.D .C . for
the Northern District of Georgia.
Harlan N ational Co. v. B oard of G overnors,
filed November 1975, U .S.C .A . for the
Eighth Circuit,
t P eter E. Blum v. M organ Guaranty Trust C o.,
et a l., filed October 1975, U .S.D .C . for the
Northern District of Georgia.
A .R . M artin-Trigona v. B oard of G overnors,
et a l , filed September 1975, U .S.D .C . for
the Northern District of Illinois.
A .R . M artin-Trigona v. B oard of G overnors,
et a l., filed September 1975, U .S.D .C . for
the Northern District of Illinois,
t Logan v. Secretary of State, et a l., filed Sep­
tember 1975, U .S.D .C . for the District of
Columbia.

tDecisions have been handed down in these cases, subject
to appeals noted.

L a w D e p a r tm e n t

Florida A ssociation of Insurance A gen ts, In c.,
v. B oard of G overnors, and N ational A s so ­
ciation of Insurance A gen ts, Inc. v. B oard
of G overnors, filed August 1975, actions

consolidated in U .S.C .A . for the Fifth Cir­
cuit.
Henry M. Smith v. N ational Bank of B ou lder,
er a l., filed June 1975, U .S.D .C . for the
Northern District of Texas.
Bank of B oulder v. B oard of Governors, et a l.,
filed June 1975, U .S.C .A . for the Tenth Cir­
cuit.
t tD a v id R. M errill, et a l., v. Federal Open M a r­
ket Com mittee of the Federal R eserve System ,

filed May 1975, U . S .D .C . for the District of
Columbia, appeal pending, U .S.C .A . for the
District of Columbia.
Curvin J. Trone v. United States, filed April
1975, U .S. Court of Claims.
R ichard S. K a ye v. A rthur F. Burns, et a l.,
filed April 1975, U .S.D .C . for the Southern
District of New York.

$The Board of Governors is not named as a party in this
action.




549

Louis J. R oussel v. B oard of G overnors, filed

April 1975, U .S.D .C . for the Eastern District
of Louisiana.
G eorgia A ssociation o f Insurance A gents, et al.
v. B oard o f G overnors, filed October 1974,

U .S.C .A . for the Fifth Circuit.
A labam a A ssociation o f Insurance A gents, et
al. v. B o a rd o f G overnors, filed July 1974,

U .S.C .A . for the Fifth Circuit,
t Investment Com pany Institute v. B oard o f G ov­
ernors, dismissed July 1975, U .S.D .C . for
the District of Columbia, appeal pending,
U .S.C .A . for the District of Columbia Cir­
cuit.
E ast Lansing State Bank v. B oard o f G over­
nors, filed December 1973, U .S.C .A . for the
Sixth Circuit,
t Consumers Union o f the United States, Inc.,
et al. v. B o a rd o f Governors, filed September
1973, U .S.D .C . for the District of Columbia.
Bankers Trust N ew Y ork Corporation v. B oard
of G overnors, filed May 1973, U .S.C. A. for
the Second Circuit.
f Decisions have been handed down in these cases, subject
to appeals noted.

550

Announcements
A P P O IN T M E N T :
D a v id M . L illy a s M e m b e r
o f th e B o a rd o f G o v e rn o rs

President Ford on April 15, 1976, announced his
intention to appoint David M. Lilly as a member
of the Board of Governors of the Federal Reserve
System. Mr. Lilly’s appointment was subsequently
confirmed by the Senate on May 28, and his oath
of office was administered on June 1.
The text of the White House announcement
follows:
The President has announced his intention to
nominate David M. Lilly, of St. Paul, Min­
nesota, to be a member of the Board of
Governors of the Federal Reserve System for
the unexpired term of fourteen years from
February 1, 1964. He will succeed Robert C.
Holland who resigned effective May 15,
1976.
Born on June 14, 1917, in St. Paul, Minne­
sota, Mr. Lilly received his A.B. degree from
Dartmouth in 1939. He served in the United
States Army from 1942 to 1945.
In 1941, Mr. Lilly became Assistant to the
Under Secretary of the Treasury. He joined
the Toro Company in 1945 and became Pres­
ident of the Company in 1950. He became
Chairman of the Board in 1968 and since
1970 has served as Chairman of the Board
and President.
Mr. Lilly is married to the former Perrin
Brown and they have three children. They
reside in St. Paul, Minnesota.
NEW

R E G U L A T IO N

C

The Board of Governors on June 9, 1976, an­
nounced adoption of a new regulation to imple­
ment the Home Mortgage Disclosure Act of 1975.
The Act, and the new Regulation C implement­
ing it, became effective June 28. The regulation
was adopted substantially as proposed by the
Board on March 29.
Regulation C requires lending institutions sub­
ject to the Act to disclose publicly where their



mortgage loans are made. Depositary institutions
subject to the Act are those that have $10 million
or more in assets, that have offices in principal
metropolitan areas (Standard Metropolitan Statis­
tical Areas— SM SA’s), that make first mortgage
loans on 1- to 4-family residences, and that are
Federally insured or regulated. The Act defines
depositary institutions as commercial banks, sav­
ings banks, savings and loan associations, building
and loan associations or homestead associations
(including cooperative banks), and credit unions.
Some 4,400 commercial banks, 3,000 savings and
loan associations, 470 mutual savings banks, and
600 credit unions are affected.
The Home Mortgage Disclosure Act makes the
Board responsible for writing a regulation to im­
plement it. The regulation is to be enforced by
the Board, the other Federal bank regulatory
agencies, the Federal Home Loan Bank Board, and
the Administrator of the National Credit Union
Administration.
The Home Mortgage Disclosure Act grew out
of allegations that there were credit shortages in
some parts of large urban areas. The Act and
Regulation C specify that nothing in them is meant
to encourage unsound lending practices or alloca­
tion of credit.
The principal provisions of the proposed new
regulation are:
— Designation of the mortgage loan in­
formation to be disclosed.
— A sample form, suggesting how re­
quired data may be reported.
— Establishment of procedures to be fol­
lowed by State-chartered depositary institu­
tions seeking exemption from the Act.
— Requirements for reporting by geo­
graphic areas. Initial disclosure statements
for fiscal years ending before July 1, 1976,
may be made by zip code. In general, loans
originated or purchased after that date on
property in the areas where the lender has
offices must be reported by census tract.
The data to be disclosed are to be made available
at lending institutions subject to the Act. Informa­

A n n o u n c e m e n ts

tion to be disclosed includes: (1) first mortgage
loans to purchase residential property; and (2)
secured and unsecured home improvement loans.
The principal changes in the regulation from the
earlier proposal are:
—The definition of “ mortgage loan” has
been narrowed, to exclude junior liens (ex­
cept for home improvement purposes) and
first mortgages taken as additional collateral
for business purposes.
—The deadline for the initial disclosures
required by the regulation has been extended
by 1 month, to September 30, to give ade­
quate time after issuance of the regulation
for lenders to prepare the required disclosure
reports.
— A provision has been added to require
lenders to notify their depositors as to when
the mortgage disclosure statement of the
institution is available, and to provide the
name and address of the appropriate Federal
enforcement agency.
The regulation defines a mortgage loan subject
to disclosure as a “ residential mortgage loan” or
any “ home improvement loan.” A residential
mortgage loan is described as a loan secured by
a first mortgage on residential real property located
in a State, the District of Columbia, or Puerto
Rico. A home improvement loan subject to dis­
closure under the regulation is an unsecured loan
or a loan secured by collateral other than a first
mortgage if the proceeds are to be used for resi­
dential repairs, rehabilitation, or remodeling and
is recorded on the lender’s books as a home
improvement loan.
As required by the Act, the regulation requires
the breakdown of the disclosed mortgage loan
information into two main categories and several
classes under each main category.
The main categories are: (1) loans made origi­
nally by the depositary institution; and (2) loans
originated by another institution but purchased by
the depositary institution.
Within each of these categories loan data are
to be divided according to loans on property lo­
cated within the SM SA’s where the headquarters
or branches of depositary mortgage lenders are
located and loans outside those SM SA’s. In each
case the following itemizations of information are
to be made for loans on 1- to 4-family residences:
1. Loans insured or guaranteed by the Federal
Housing Administration, the Veterans Adminis­
tration, and Farmers Home Administration.
2. Conventional mortgage loans.



551

3. Home improvement loans.
Loans on multifamily dwellings (more than four
units) are to be reported separately.
When the property is located in an SMSA where
the lender has offices, the lender is also required
to indicate mortgage loans on 1- to 4-family resi­
dences made to borrowers who did not, at the time
of execution of the mortgage, intend to live in
the mortgaged residence.
To implement a further provision of the Act,
the regulation requires, as a general rule, that
mortgage loan disclosures on properties within
SMSA’s where the lender is headquartered or has
a branch be itemized according to the census tract
in which the property is located. However, in
certain limited circumstances reporting by zip code
is permissible. Loans on properties not located in
SM SA’s where the lender has an office will be
reported but not itemized by either census tract
or zip code.
A census tract is a small geographical territory,
containing about 4,000 inhabitants, into which
counties in SMSA’s have been divided for pur­
poses of statistical analysis. Census tracts are laid
out with the objective of achieving some uni­
formity of population characteristics and economic
status.
On the basis of the 1970 census, the Census
Bureau has issued a series entitled “ 1970 Census
Population and Housing: Census Tracts, Final
Reports/PHC(l) Series.” This contains tract maps
for every portion of all the SMSA’s designated
at that time and for some adjacent areas. Since
1970 the Office of Management and Budget has
redefined many SM SA’s and added others. Tract
maps for the new or redefined SMSA’s are readily
available only to the extent that they appear on
the PHC(l) series of 1970.
A list of currently defined SMSA’s showing
portions for which census tract itemization would
be required will be made available through the
Board and Reserve Banks. The Board said it would
inform lenders of future changes in SM SA’s.
The regulation provides that:
1. An institution with more than $10 million
in assets should refer to currently designated
SMSA’s to determine if it is subject to the Act.
2. Institutions subject to the Act will determine
if itemization by census tract is required by refer­
ring to the 1970 census tract series.
3. Loans in areas not included in the 1970
census tract series are to be itemized by zip code
areas.
The regulation permits use of zip code itemiza­

552

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

tion in initial disclosure statements for full fiscal
years ending before July 1, 1976. In general, loans
originated or purchased after that date, on property
in areas where the lender has offices, must be
reported by census tracts.
These provisions are intended to give institu­
tions subject to the Act an opportunity to begin
keeping a record of mortgage loans by census tract
before the loans must be reported in that way.
They provide time for distribution of census tract
maps and materials for converting street addresses
to census tracts and for computer programming
and training personnel, and are designed to reduce
errors and reporting burdens.
For fiscal years ending by June 30, 1976, mort­
gage loan disclosure statements are due by Sep­
tember 30, 1976. Statements for later years are
due within 90 days after the end of the fiscal year.
For fiscal years straddling June 30, 1976, reporting
dates differ according to whether reporting is done
by zip code or by census tract.
Complete mortgage loan data are to be made
available at the home office of each institution
subject to the Act. In addition, at least one branch
office in each SMSA is required to make available
mortgage loan data on properties located in that
SMSA.
State-chartered lenders, or a State, may apply
to the Board of Governors for an exemption from
Regulation C when State laws are substantially
similar to Federal requirements.
As required by the Act, the Board will carry
out a study to determine the feasibility and useful­
ness of requiring depositary institutions outside
SMSA’s to make disclosures comparable to those
under the regulation. To this end, the Board wel­
comes comment and data from lenders and from
the public regarding the costs of compiling such
information and itemization by zip code areas or
census tracts; the number of requests received to
inspect data or to make copies; the use made of
the information by the public; and changes in
lending practices that may have resulted from
evaluation of the information.

U .S . P A R T IC IP A T IO N
IN S T A N D B Y

C R E D IT S

The Federal Reserve System and the Treasury
Department announced on June 7, 1976, that they
would participate with central banks of other
Group of Ten countries, Switzerland, and the Bank
for International Settlements in making available



to the Bank of England standby credits totaling
$5 billion. These arrangements have been made
in the light of the recent fall in the value of the
pound sterling under exchange market pressures
that have led to disorderly market conditions and
in the common interest in the stability and efficient
functioning of the international monetary system.
Of the total amount, the Federal Reserve System
will stand ready to make available $ 1 billion under
its existing $3 billion reciprocal currency arrange­
ment with the Bank of England, and the Treasury,
through the Exchange Stabilization Fund, will
stand ready to make available $1 billion under a
swap arrangement with the Bank of England.

R E C O R D S O F F O M C P O L IC Y
A C T IO N S : S p e e d -u p o f P u b lic a tio n

The Federal Open Market Committee announced
on May 24, 1976, that it had voted to speed up
publication of the records of policy actions taken
at each of its monthly meetings.
At its meeting on May 18, 1976, the Committee
decided that the policy record for a meeting should
be released a few days after the next regularly
scheduled meeting, rather than 45 days after the
meeting to which the record relates. Since the
majority of meetings are held at 4-week intervals,
the delay will most often be about a month. For
the minority of meetings that are followed by a
5-week interval, it will be about a week longer.
In view of this action, the FOMC and the Board
of Governors on May 24, 1976, released the record
of policy actions taken at the FOMC meeting of
April 20, 1976. Under previous rules, this record
would not have been made available until June
7.
A delay of approximately 45 days had been in
effect since early 1975. From mid-1967 to early
1975, a delay of approximately 90 days had been
in effect. Prior to mid-1967, when the rules were
changed to comply with the Freedom of Informa­
tion Act, the records of policy actions were pub­
lished only in the Board’s Annual R eport to Con­
gress.
As in the past, the policy record for a meeting
will include information on any changes in the
Committee’s instructions to the Desk during the
period before the next regularly scheduled meet­
ing. Such changes in instructions ordinarily arise
out of Committee consultations by telephone or
telegraph that are held whenever necessitated by
special developments.

A n n o u n c e m e n ts

It was understood that the record of policy
actions would be expanded to include more infor­
mation concerning members’ views on longer-run
and current policy. At the same time, the Com­
mittee voted to discontinue its Memorandum of
Discussion. These Memoranda, which are detailed
accounts of proceedings at meetings of the Com­
mittee, have been available to the public 5 years
after the end of the year to which they apply.
The records of policy actions also are published
in the Federal Reserve B u l l e t i n and in the
Board’s Annual R eport. The summary descrip­
tions of economic and financial conditions they
contain are based solely on information that was
available to the Committee at the time of the
meeting.
A N N U A L R E P O R T : P u b lic a tio n

The Sixty-Second Annual Report of the Board of
Governors of the Federal Reserve System, cover­
ing operations for the calendar year 1975, is
available for distribution. Copies may be obtained
upon request to Publications Services, Division of
Administrative Services, Board of Governors of
the Federal Reserve System, Washington, D.C.
20551.

C H A N G E S IN B O A R D

STA FF

The Board of Governors has announced the fol­
lowing changes in its official staff:
Peter M. Keir, Adviser, Division of Research
and Statistics, has been named Assistant to the
Board in the Office of Staff Director for Monetary
Policy, effective June 6, 1976.
Thomas E. Mead, Assistant Director in the
Division of Federal Reserve Bank Examinations
and Budgets, has been named Assistant Director
in the Division of Banking Supervision and Regu­
lation, as of May 23, 1976.
C A P A C IT Y A N D IT S U T IL IZ A T IO N

553

lished monthly beginning with estimates for June.1
Included are three major component groupings—
durable goods materials, nondurable goods mate­
rials, and energy materials. For durable goods
materials a subtotal for basic metals will be pro­
vided. For nondurable goods materials four subto­
tals will be included— textiles, paper, chemical,
and the textile, paper, and chemical groups com­
bined. The Federal Reserve series on capacity and
utilization for all manufacturing are being revised,
and the new data are expected to be published later
this year.
The new index of capacity for production of
materials and the companion series on production
are each constructed from 96 individual series
corresponding to those classified under materials
in the Federal Reserve revised index of industrial
production (discussed on pp. 470-79) of this B u l ­
l e t i n ) . The new total materials series are consid­
erably more comprehensive in coverage than were
the former major materials series, and they should
be more useful in evaluating production and price
developments related to supply limitations in the
materials industries.
The new materials capacity series are derived
from data on capacity or operating rates for a large
number of industries assembled from a wide vari­
ety of sources. Included in these are the capacity
or operating rate surveys taken by the Bureau of
the Census, the Bureau of Economic Analysis
(both of the Department of Commerce), and the
Economics Department of McGraw-Hill Publica­
tions Company, as well as data from a number
of trade associations— notably those for iron and
steel, petroleum, paper, aluminum, plywood, tex­
tiles, and plastics. Also considered in compiling
the series are business investment outlays for new
plant and equipment and business equipment pro­
duction data.
A detailed description of these new series, indi­
cating the sources of the data and methodology
used in compiling them, will be published later
in the B u l l e t i n . The quarterly utilization rates
for the nine materials series to be published regu­

IN M A T E R IA L S IN D U S T R IE S

The Federal Reserve has compiled new series on
capacity and its utilization in the materialsproducing industries for the period since 1967.
These new series will replace the previously pub­
lished series for major materials. The capacity
utilization rates for total materials and for eight
groupings of materials-producing industries repre­
senting different market categories will be pub­




1Monthly capacity utilization rates for the nine mate­
rials groupings for the period June 1975 to June 1976
will be published in the Federal Reserve G.12.3 press
release, “ Industrial Production,” for July and in the
July B ulletin . In addition, quarterly capacity utiliza­
tion rates for these series for the period 1975 to 1976
will be published in the July “ Industrial Production”
release. Historical data for these series will be available
from the Board’s Division of Research and Statistics,
after the June estimates have been released.

554

F e d e r a l R e s e r v e B u lle tin □ J u n e 1 9 7 6

larly are provided in the following table for the
period from 1973 through 1975.
C a p a c ity U tiliz a tio n R a te s fo r
M a te ria ls In d u s tr ie s
In per cent
Year

Q2

Ql

Q3

92.6
89.6
70.6

92.1
90.5
71.5

92.9
89.1
74.8

Q4

92.1
81.7
76.9

Durable goods materials
1973 ...............
1974 ...............
1975 ...............

91.7
87.4
64.4

90.7
88.5
66.9

92.3
87.7
68.8

91.3
79.9
70.3

Basic metal materials
1973 ...............
1974 ...............
1975 ...............

95.6
94.8
75.2

97.3
93.9
67.2

97.5
92.0
70.4

96.9
86.0
69.9

Nondurable goods materials
1973 ...............
1974 ...............
1975 ...............

93.9
94.0
70.0

93.6
93.1
72.5

93.4
91.6
79.9

93.8
81.5
84.4

Textile, paper, and chemical materials
1973 ...............
1974 ...............
1975 ...............

94.1
93.7
68.0

93.8
93.3
70.6

94.0
92.1
78.5

93.9
81.2
83.9

Textile materials
1973 ...............
1974 ...............
1975 ...............

93.0
93.6
60.9

93.0
90.4
71.5

93.8
85.4
82.7

94.6
70.1
87.0

Paper materials
1973 ...............
1974 ...............
1975 ...............

98.4
98.0
78.3

99.5
98.4
73.4

98.8
97.0
81.2

98.2
89.9
86.2

93.2
92.5
67.2

92.4
92.7
69.4

92.5
92.7
76.5

92.4
82.1
82.3

Energy materials
1973 ...............
1974 ...............
1975 ...............




93.8
90.5
86.8

93.4
90.3
85.1

94.1
89.4
84.3

The seasonally adjusted series for bank credit and
its major components that are published regularly
in the B u l l e t i n (page A -13) have been revised
to take account of changes in seasonal factors and
of adjustments to benchmarks for the latest avail­
able call report data, December 31, 1975. Revi­
sions in seasonal factors affect the seasonally ad­
justed data from 1968 to date, with principal
changes in the more recent years. The benchmark
revisions affect data that are not seasonally ad­
justed for July 1975 through April 1976. However,
data prior to July 1975 may vary slightly from
those published earlier because of rounding dif­
ferences associated with the current computer
operation.
The revised historical data will not be published
in the B u l l e t i n but will be available on request
from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
NEW

RELEA SE:

S e c u rity C re d it E x te n s io n s

Data collected by the Board of Governors in an­
nual surveys of margin account credit extensions
by lenders subject to the provisions of Regulations
T, U, and G (covering brokers, banks, and other
lenders, respectively) are now being summarized
in a special release, C.2, “ Aggregate Summaries
of Annual Surveys of Security Credit Extension.”
This information heretofore had been released in
supplemental tables in the B u l l e t i n . Beginning
this year, with data as of June 30, 1975, the
information will be available both in the C.2
special release and in the Annual Statistical D igest
(publication of which will be announced later).

R E V IS E D

Chemical materials
1973 ...............
1974 ...............
1975 ...............

L O A N S A N D IN V E S T M E N T S :
R e v is io n s in S e rie s

Materials, total
1973 ...............
1974 ...............
1975 ...............

C O M M E R C IA L B A N K

92.0
87.0
84.8

OTC

S T O C K L IS T

The Board of Governors has published a list of
over-the-counter (OTC) stocks that are subject to
its margin regulations, revised as of May 24, 1976.
The list, which supersedes the revised list of OTC
margin stocks that was issued on September 29,
1975, is available on request from Publications
Services, Division of Administrative Services,
Board of Governors of the Federal Reserve Sys­
tem, Washington, D.C. 20551.

A n n o u n c e m e n ts

SYSTEM

M E M B E R S H IP :

A d m is s io n o f S ta te B a n k s

The following banks were admitted to membership
in the Federal Reserve System during the period
May 16, 1976, through June 15, 1976:




555

M ichigan

Grandville ...................................Old Kent Bank
of Grandville
Utah

South Salt Lake .....................The Valley Bank
and Trust Company

556

Industrial Production
paced the early recovery, increased at a slower
pace.

R eleased fo r publication June 16

Industrial production increased by an estimated 0.7
per cent in May, following a downward-revised
increase of 0.5 per cent now indicated for April.
The increases for both April and May were held
down somewhat by the strike in the rubber in­
dustry. Growth in output was widespread among
product groupings again in May. The total index
for May, at 123.2 per cent of the 1967 average,
was 12 per cent above the April 1975 low.
Auto assemblies changed little in May, as re­
ductions in output of compact and subcompact
models offset gains in other lines. Production of
automotive parts and goods was curtailed further
because of the rubber strike. Output of consumer
durable home goods rose sharply again in May,
and production of nondurable consumer goods
showed appreciable gains. Production of business
equipment also increased quite sharply, but output
of construction products declined.
Production of steel, nonferrous metals, and most
other durable goods materials rose further, while
output of nondurable goods materials, which had

Seasonally adjusted, ratio scale, 1 9 6 7 = 1 0 0
14 0
TOTAL
S

r

-

1

I ,

I ........J

1 ..

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

Industrial production

rci

uiangca iiuin--

Maye

Month
ago

Year
ago

Q4 to

122.3

123.2

.7

11.9

2.6

121.4
120.7
131.8
124.9
134.4
120.9
124.0
118.4

122.0
121.4
132.8
126.5
135.1
121.8
124.1
118.7

122.8
122.6
133.9
127.7
136.3
123.8
123.5
118.2

.7
1.0
.8
.9
.9
1.6
-.5
- .4

8.3
7.8
10.5
15.6
8.8
7.7
9.9
9.9

2.5
1.9
2.3
3.5
1.7
2.7
4.0
4.0

122.2

122.7

123.8

.9

18.0

3.0

Feb.

Mar.

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

120.8

121.7

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

121.4
120.7
132.0
123.1
135.4
120.4
123.5
117.6

Materials .................................................................

120.0




-

/ y
^ T
\
v f
/ y PRODUCTS,
r
TO TAL
\ J

' ”

1976

*E sti mated.

MATERIALS

10 0
5

Seasonally adjusted = 100

^ P r elim in a r y .

- 120 -

Apr.*

Ql

A l

Financial and Business Statistics

CONTENTS

IN S ID E B A C K C O V E R

Guide to Tabular Presentation
Statistical Releases: Reference
U .S . S T A T IS T IC S

Member bank reserves, Reserve Bank
credit, and related items
A 5 Federal funds—
Money market banks
A 6 Reserve Bank interest rates
Al Reserve requirements
A8 M
aximuminterest rates; margin
requirements
A9 O
pen market account
A 1 0 Federal Reserve Banks
A l l Bank debits
A 12 M
oney stock
A 1 3 Bank reserves; bank credit
A 1 4 Commercial banks, by classes
A 18 W
eekly reporting banks
A 2 3 Business loans of banks
A 2 4 Demand deposit ownership
A 2 5 Loan sales by banks
A25 Open market paper
A 2 6 Interest rates
A 2 9 Security m
arkets
A 2 9 Stock market credit
A 3 0 Savings institutions
A2




A 32
A 34
A 37
A 38
A 40
A 42
A 45
A
A
A
A

48
50
50
52

A
A
A
A

53
53
54
56

Federal finance
U.S. Government securities
Federally sponsored credit agencies
Security issues
Business finance
Real estate credit
Consumer credit
Industrial production
Business activity
Construction
Laborforce, employment, and
unemployment
Consumerprices
Wholesaleprices
National product and income
Flowoffunds
IN T E R N A T IO N A L S T A T IS T IC S

A
A
A
A

58
59
59
60

A 61
A 74
A 75
A 75

U.S. balance of payments
Foreign trade
U.S. reserve assets
Gold reserves of central banks and
governments
International capital transactions
of the UnitedStates
Open market rates
Central bank rates
Foreign exchange rates

A 8 5 IN D E X T O S T A T IS T IC A L T A B L E S

A2

BANK RESERVES AND RELATED ITEMS □ JUNE 1976
M E M B E R B A N K RESERVES, FEDERAL RESERVE B A N K C R E D IT, A N D RELATED IT E M S

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

U.S. Govt, securities1

Total

Averages of daily figures
1969—Dec.........................
1970—Dec..........................
1971—Dec..........................
1972—Dec..........................
1973—Dec..........................
1974—Dec..........................
1975—May........................
June........................
July..........................
Aug.........................
Sept.........................
Oct..........................
Nov.........................
Dec..........................
1976—Jan..........................
Feb..........................
Mar.........................
Apr.........................
Week ending—
1976—Mar. 3...................
10...................
17...................
24...................
31...................
Apr. 7...................
14...................
21...................
28...................
May 5...................
12...................
19...................
26*..................
End of month
1976—Mar.........................
Apr..........................
Wednesday
1976—Mar. 3 ..,..............
10...................
17...................
24...................
31...................
Apr. 7...................
14...................
21...................
28...................
May 5...................
12...................
19...................
26*.................

Bought
out­
right2

Held
under
repur­
chase
agree­
ment

Loans

Float3

Other
F.R.
assets4

Totals

Treas­
ury
cur­
rency
out­
stand­
ing

57,500
61,688
69,158
71,094
79,701
86,679
91,918
88,912
88,166
86,829
89,191
90,476
90,934
92,108
92,998
94,610
94,880
93,243
95,967

57,295
61,310
68,868
70,790
78,833
85,202
89,355
87,618
87,882
86,348
87,531
89,547
89,560
91,225
91,524
92,812
93,503
92,187
94,049

205
378
290
304
868
1,477
2,563
1,294
284
481
1,660
929
1,374
883
1,474
1,798
1,377
1,056
1,918

1,086
321
107
1,049
1,298
703
60
271
261
211
396
191
61
127
79
76
58
44
121

3,235
3,570
3,905
3,479
3,414
2,734
1,877
2,046
1,911
1,691
1,823
1,945
2,480
3,029
2,684
2,375
2,204
2,236
2,201

2,204
1,032
982
1,138
1,079
3,129
3,039
3,098
3,100
2,953
3,060
3,521
3,481
3,534
3,505
3,384
3,412
4,144
4,051

64,100
66,708
74,255
76,851
85,642
93,967
97,845
95,119
94,144
92,395
95,277
96,931
97,817
99,651
100,172
101,369
101,336
100,317
103,081

10,367
11,105
10,132
10,410
11,567
11,630
11,620
11,620
11,620
11,604
11,599
11,599
11,599
11,599
11,599
11,599
11,599
11,599
11,599

400
400
400
400
400
429
500
500
500
500
500
500
500
500
500
500
500
500

6,841
7,145
7,611
8,293
8,668
9,179
9,464
9,536
9,616
9,721
r9,797
9,877
10,010
10,094
10,177
10,267
10,436
10,501
10,554

96,404
92,768
93,316
96,724
95,638
91,538
90,257
94,821
95,155
97,490
93,718
95,119
96,984

94,161
92,113
93,316
94,409
93,917
91,538
89,946
92,737
93,967
94,289
93,099
93,777
94,798

2,243
655
2,315
1,721
311
2,084
1,188
3,201
619
1,342
2,186

85
48
40
78
36
24
61
40
54
30
55
122
135

2,115
2,577
2,446
2,041
1,657
2,101
2,061
2,520
2,249
2,464
2,395
2,377
1,893

3,081
3,232
3,347
3,501
3,687
3,816
4,079
4,340
4,301
4,402
4,361
4,015
3,737

102,832
99,358
99,762
103,091
101,850
98,014
97,002
102,544
102,386
105,278
101,105
102,296
103,560

11,599
11,599
11.599
11.599
11,599
11,599
11,599
11,599
11,599
11,599
11,599
11,599
11,599

500
500
500
500
500
500
500
500
500
500
500
500
500

10,356
10,430
10,436
10,442
10,442
10,452
10,507
10,514
10,522
10,499
10,535
10,541
10,581

96,647
98,553
97,593

93,900
94,468
94,334

2,747
4,085
3,259

54
31
397

2,110
2,067
1,133

3,707
4,280
3,888

103,401
105,926
103,886

11,599
11,599
11,599

500
500
500

10,403
10,459
10,588

96,716
87,567
92,430
95,920
96,647
87,563
91,957
98,151
98,180
96,440
96,324
97,044
96,885

94,287
87,567
c92,430
94,671
93,900
87,563
89,779
92,916
93,842
94,240
94,136
93,814
94,780

2,429

317
36
72
324
54
41
322
173
246
41
258
541
644

3,120
3,283
3,869
2,668
2,110
2,539
2,755
2,923
2,579
3,340
3,181
3,027
2,264

3,153
3,264
3,370
3,613
3,707
3,713
4,321
4,677
4,351
4,537
4,385
3,542
3,820

104,433
94,773
100,326
103,140
103,401
94,381
100,028
106,774
106,165
105,072
104,866
105,035
104,328

11,599
11.599
11.599
11.599
11,599
11,599
11,599
11,599
11,599
11,599
11,599
11,599
11,598

500
500
500
500
500
500
500
500
500
500
500
500
500

10,427
10,433
10,440
10,446
10,403
10,452
10,511
10,519
10,526
10,533
10,540
10,548
10,588

1,249
2,747
2,178
5,235
4,338
2,200
2,188
3,230
2,105

1Includes Federal agency issues held under repurchase agreements
beginning Dec. 1, 1966, and Federal agency issues bought outright be­
ginning Sept. 29, 1971.
2Includes, beginning 1969, securities loaned—fully guaranteed by U.S.
Govt, securities pledged with F.R. Banks—and excludes (if any) securities
sold and scheduled to be bought back under matched sale-purchase
transactions.
3Beginning 1960 reflects a minor change in concept; see Feb. 1961
Bulletin, p, 164.
4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R.




Gold
stock

Special
Drawing
Rights
certificate
account

liabilities and capital” are shown separately; formerly, they were netted
together and reported as “Other F.R. accounts.”
5Includes 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 p. A-10. See also note 3.
6 Beginning July 1973, this item includes certain deposits of domestic
nonmember banks and foreign-owned banking institutions held with
member banks and redeposited in full with F.R. Banks in connection
Notes continued on opposite page.

JUNE 1976 □ BANK RESERVES AND RELATED ITEMS

A3

M E M B E R B A N K R E SE R V E S, FED ER AL R E SERV E B A N K C R E D IT , A N D RELATED I T E M S - C o n t in u e d
(In millions o f dollars)

Factors absorbing reserve funds

Deposits, other
than member bank
reserves
with F.R. Banks

Cur­
rency
in
cir­
cula­
tion

Treas­
ury
cash
hold­
ings

53,591
57,013
61,060
66,060
71,646
78,951
79,102
80,607
81,758
81,822
81,907
82,215
83,740
85,810
84,625
84,002
85,014
86,565
87,388

656
427
453
350
323
220
326
355
358
368
362
387
415
452
496
527
511
524
510

1,194
849
1.926
1,449
1,892
1,741
8,115
3,353
2,207
818
3,415
4,940
4,333
3,955
5,903
8,811
7,653
5,211
7,215

146
145
290
272
406
357
262
272
269
274
308
271
297
259
287
280
264
254
286

458
735
728
631
717
874
746
989
711
660
798
632
649
906
916
716
810
815
655

84,077
84,776
85,261
85,168
85,124
85,713
86,794
87,106
86,627
86,745
87,422
87,502
87,402

513
510
498
514
522
523
529
527
516
526
522
514
493

9,911
7,227
6,036
8,972
7,705
4,268
2,421
6,003
6,861
8,910
6,427
6,473
8,055

312
288
262
267
246
277
261
232
238
284
327
300
232

85,498
86,481
87,760

524
536
470

7,144
9,806
6,745

84,601
85,330
85,454
85,307
85,498
86,527
87,297
87,158
86,802
87,289
87,818
87,611
87,782

505
510
507
524
524
522
525
511
517
513
510
493
480

9,820
5,300
9,531
8,838
7,144
1,456
2,257
7,894
9,023
6,046
5,795
7,861
7,655

Treas­
ury

Other
F.R.
ac­
counts 4

Other
F.R.
lia­
bilities
and
capital*

Member bank
reserves

Period or date

With
F.R.
Banks

Cur­
rency
and
coin 7

Total 8

2,192
2,265
2,287
2,362
2,942
3,266
3,231
3,191
3,135
3,096
3,169
3,208
3,276
3,247
3,225
3,231
3,252
3,203
3,314

23,071
23,925
25,653
24,830
28,352
29,767
27,576
28,007
27,442
27,183
27,215
27,254
27,215
27,215
26,995
26,168
26,366
26,345
26,366

4,960
5,340
5,676
6,095
6,635
7,174
6,916
6,969
7,213
7,299
7,431
7,313
7,356
7,773
8,445
7,646
7,456
7,568
7,838

28,031
29,265
31,329
31,353
35,068
36,941
34,492
34,976
34,655
34,482
34,646
34,567
34,571
34,989
35,575
33,953
33,967
34,063
34,356

.1969—Dec.
.1970—Dec.
.1971—Dec.
. 1972—Dec.
. 1973—Dec.
. 1974—Dec.
. 1975—May
..........June
..........July
..........Aug.
..........Sept.
..........Oct.
..........Nov.
..........Dec.
. 1976—Jan.
..........Feb.
..........Mar.
..........Apr.
..........MayP

813
740
950
822
724
914
698
846
821
815
632
568
624

3,289
3,061
3,217
3,343
3,433
3,030
3,148
3,236
3,334
3,389
3,136
3,234
3,409

26,371
25,283
26,072
26,547
26,635
25,840
25,756
27,208
26,610
27,208
25,271
26,346
26,024

7,577
7,955
7,493
6,869
7,453
7,600
7,856
7,088
7,623
7,937
8,297
7,638
7,513

34,088
33,379
33,710
33,562
34,236
33,587
33,762
34,447
34,384
35,296
33,720
34,136
33,689

. 1976—Mar. 3
..................10
..................17
................. 24
...................31
.Apr. 7
........ 14
.........21
......... 28
.May 5
........12
........19
........ 26p

305
305
303

796
762
679

3,490
3,456
3,500

28,150
27,140
27,115

7,453
7,937
7,830

35,751
35,228
35,098

.1976—Mar.
..........Apr.
..........May^

233
255
234
271
305
246
242
252
287
298
332
230
251

690
936
982
755
796
767
788
1,114
741
795
588
518
941

2,994
3,106
3,220
3,330
3,490
2,978
3,161
3,460
3,447
3,061
3,207
3,336
3,435

28,115
21,868
22,936
26,660
28,150
24,435
28,368
29,003
27,973
29,702
29,255
27,632
26,470

7,577
7,955
7,493
6,869
7,453
7,600
7,856
7,088
7,623
7,937
8,297
7,638
7,513

35,832
29,964
30,574
33,675
35,751
32,185
36,374
36,242
35,747
37,791
37,704
35,422
34,135

...... 1976—Mar. 3
........................ 10
........................ 17
........................ 24
........................ 31
................ Apr. 7
........................ 14
.........................21
.........................28
................May 5
........................12
........................19
........................26*>

For­
eign

Other 3,6

Averages of daily figures

Week ending—

End of month

Wednesday

with voluntary participation by nonmember institutions in the F.R. Sys­
tem’s program of credit restraint.
As of Dec. 12, 1974, the amount of voluntary nonmember bank and
foreign-agency and branch deposits at F.R. Banks that are associated
with marginal reserves are no longer reported. However, two amounts are
reported: (1) deposits voluntarily held as reserves by agencies and branches
of foreign banks operating in the United States; and (2) Euro-dollar
liabilities.
7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning Jan. 1963, figures are estimated except weekly
averages. Beginning Sept. 12, 1968, amount is based on close-of-business
figures for reserve period 2 weeks previous to report date.
8 Beginning with week ending Nov. 15, 1972, includes $450 million of




reserve deficiencies on which F.R. Banks were allowed to waive penalties
for transition period associated with bank adaptation to Regulation J,
as amended effective Nov. 9, 1972. For 1973, allowable deficiencies in­
cluded are (beginning with first statement week of quarter): Ql, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. For 1974,
Ql, $67 million, Q2, $58 million. Transition period ended after 1974, Q2.
Beginning with week ending Nov. 19, 1975, adjusted to include waivers
of penalties for reserve deficiencies in accordance with Board policy,
effective Nov. 19, 1975, of permitting transitional relief on a graduated
basis over a 24-month period when a nonmember bank merges into an
existing member bank, or when a nonmember bank joins the Federal
Reserve System.
For other notes see opposite page.

A4

BANK RESERVES AND RELATED ITEMS □ JUNE 1976
R E SE R V E S A N D B O R R O W IN G S OF M E M B E R B A N K S
(In millions o f dollars)

All member banks
Period

1965—Dec.......
1967—De c
1968—De c
1969—De c
1970—De c
1971—De c
1972—De c
1973—De c
1974—Dec.. . . .
1975—Ma____y
June......
July......
Aug.......
Sept......
Oct.......
Nov......
Dec.......
1976—Ja n
Feb.......
Mar......
Apr.......
May?.. .
Week ending—
1975—May 7.
14.
21.
28.
Dec. 3.
10.
17.
24.
31 .
1976—Jan. 7.
14.
21.
28.
Feb. 4.
11.
18.
25.
Mar. 3.
10.
17.
24.
31.
Apr. 7.
14.
21.
28.
May 5.
12.
19.
26p

Reserves

Large banks2

Borrowings

New York City

Total
held1

Re­ Excess i
quired

22,719
25,260
27,221
28,031
29,265
31,329
31,353
35,068
36,941
34,492
34,976
34,655
34,482
34,646
34,567
34,571
34,989
35,575
33,953
33,967
34,063
34,356

22,267
24,915
26,766
27,774
28,993
31,164
31,134
34,806
36,602
34,493
34,428
34,687
34,265
34,447
34,411
34,281
34,727
35,366
33,939
33,531
33,974
33,845

452
345
455
257
272
165
219
262
339
-1
548
-32
217
199
156
290
262
209
14
436
89
511

454
238
765
1,086
321
107
1,049
1,298
703
60
271
261
211
396
191
61
127
79
76
58
44
121

41
32
9
11
17
38
61
65
28
13
9
11
8
11
11

41
18
100
56
34
25
-20
-23
132
-28
142
-22
-18
17
42
50
64
52
-147
177
2
-27

35,237
34,517
34,702
34,209
34,817
34,419
35,139
34,836
35,611
35,551
35,802
36,193
35,072
35,069
33,779
34,540
33,656
34,088
33,379
33,710
33,562
34,236
33,587
33,762
34,447
34,384
35 296
33,720
34,136
33,689

34,926
34,518
34,631
34,045
34,504
34,276
34,906
34,625
35,197
35,227
35,639
35,996
34,907
34,652
33,729
34,040
33,773
33,678
33,276
33,509
33,451
33,838
33,464
33,589
34,317
34,272
34,855
33,753
33,891
33,514

311
-1
71
164
313
143
233
211
414
324
163
197
165
417
50
500
-117
410
103
201
111
398
123
173
130
112
441
-33
245
175

34
17
121
84
66
28
44
219
253
67
45
153
58
57
51
56
148
85
48
40
78
36
24
61
40
54
30
55
122
135

11
8
7
9
21
14
13
12
13
10
8
10
8
12
12
10
10
8
8
8
8
10
11
10
10
11
11
9
11
11

177
-106
-33
53
119
-56
111
7
57
59
71
-62
49
94
-83
180
-157
98
53
26
-27
105
-13
29
-4
16
65
-43
40
-91

Total

Sea­
sonal

All other banks
Other

Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­
ings
ings
ings
ings

1 Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week of quarter): Ql, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning
1974, Ql, $67 million; Q2, $58 million. Transition period ended after
second quarter, 1974. For weeks for which figures are preliminary, figures
by class of bank do not add to the total because adjusted data by class are
not available.
Beginning with week ending Nov. 19, 1975, adjusted to include waivers
of penalties for reserve deficiencies in accordance with Board policy,
effective Nov. 19, 1975, of permitting transitional relief on a graduated
basis over a 24-month period when a nonmember bank merges into an




City of Chicago

111
40
230
259
25
35
301
74
80
24
90
54
14
68
31
7
63
9
20
21
30

98
9
16
140
140
28
10

82
31
26
36

3
34
40
53

15
8
15
18
7
1
13
43
5
-21
47
-24
5
27
-23
34
-18
-18
-14
36
-4
16
21
-26
9
4
-18
26
-12
-5
20
-12
-2
-2
28
—14
20
-7
-5
11
-18
21
-13
10
-16
8
-22
27
6
3
-14
40

23
13
85
27
4
8
55
28
18
2
23
1
2

17
1
2
8
2

77

4
11

15
18
3
6

67
50
90
6
42
-35
-42
28
39
-89
217
-118
98
23
3
42
89
3
-2
108
-47
183
—5
—17
-34
-5
61
37
6
75
129
102
-94
91
-23
139
-31
95
-43
122
-67
13
70
109
17
-15
41
—43
216
-112
80
-57

228
105
270
479
264
22
429
761
323
13
114
62
51
141
32
5
26
13
16
14
15
31

1
2
54
6
1
11
42
57
11
2
18
15
16
14
10
24
14
3
22
23
14
4
32
2
26
2
34
31

330
267
250
177
189
174
-160
133
163
137
142
132
132
132
134
164
127
172
177
115
138
124

92
80
180
321
28
42
264
435
282
23
65
122
145
185
128
49
38
40
39
21
21
58

118
148
129
112
151
136
128
134
208
175
188
170
111
198
144
232
88
179
135
141
81
174
135
151
115
112
154
119
139
86

34
16
21
21
44
27
33
37
56
56
43
30
33
41
37
42
42
29
19
18
19
22
20
14
20
28
27
16
42
51

existing member bank, or when a nonmember bank joins the Federal
Reserve System.
2 Beginning Nov. 9, 1972, designation of banks as reserve city banks
for reserve-requirement purposes has been based on size of bank (net
demand deposits of more than $400 million), as described in the Bulletin
for July 1972, p. 626. Categories shown here as “Large” and “All other’*
parallel the previous “Reserve city” and “Country” categories, respectively
(hence the series are continuous over time).
Note.—Monthly and weekly data are averages of daily figures within
the month or week, respectively.
Borrowings at F. R. Banks: Based on closing figures.
Effective Apr. 19, 1973, the Board’s Regulation A, which governs lend­
ing by F.R. Banks, was revised to assist smaller member banks to meet
the seasonal borrowing needs of their communities.

JUNE 1976 □ MONEY MARKET BANKS

A5

B A S IC R E SE RV E P O S IT IO N , A N D FED ER AL F U N D S A N D RELATED T R A N S A C T IO N S
(In millions of dollars, except as noted)

Interbank Federal funds transactions

Basic reserve position

Reporting banks
and
week ending—

Less—

Net surplus, or
deficit (—)

Related transactions with
U.S. Govt, securities dealers

Net transactions
Total
Bor­
two-way Pur­
Loans row­
Net
to
trans­ chases Sales
ings
loans
Sales actions2 of net of net dealers 3 from
buying selling
dealers4
banks banks

Gross transactions

Net
Excess
Per cent
Bor­ inter­
Pur­
of
re­
chases
serves 1 rowings bank Amount avg.
required
at F.R. Federal
Banks funds
reserves
trans.

Total—46 banks

1976—Apr. 7........
14........
21........
28........
May 5........
12........
19........
26........

80
1
43
-68
229
3
57
58

16,432
19.322
16,895
12,665
11,833
15,423
13.323
11,305

-16,352
-19,346
-16,872
-12,747
-11,604
-15,455
-13,313
-11,308

109.4
127.7
109.6
84.4
74.5
103.0
87.4
76.8

22,084
24,269
22,904
19,508
19,850
21,837
20,624
18,203

5,652
4,947
6,008
6,843
8,018
6,414
7,301
6,898

4,498 17,586
4,235 20,033
4,968 17,936
4,715 14,793
4,721 15,130
4,332 17,505
4,526 16,098
4,228 13,974

19
21
12
11
61
-3
18
-29

5,838
6,706
5,028
3,544
4,275
6,089
4,768
3,108

-5,819
-6,686
-5,016
-3,533
-4,214
-6,126
-4,789
-3,183

96.5
109.5
80.1
58.8
66.4
100.6
76.5
53.8

6,277
7,404
6,105
4,584
5,280
6,779
5,868
4,143

439
698
1,078
1,041
1,005
690
1,101
1,035

439
697
1,078
980
1,006
690
1,101
804

61
-3
32
-79
169
6
39
87

10,594
12,615
11,868
9,121
7,558
9,334
8,555
8,197

-10,533
-12,660
-11,856
-9,215
-7,390
-9,329
-8,523
-8,124

118.1
140.1
129.7
101.4
80.1
104.7
95.1
92.3

15,807
16,865
16,798
14,923
14,571
15,058
14,756
14,060

5,213
4,250
4,930
5,802
7,012
5,724
6,201
5,863

-11
2
-21
12
19
17
-5
40

5,231
6,202
6,184
4,722
4,594
4,960
4,873
4,521

-5,242
-6,215
-6,224
-4,710
-4,575
-4,943
-4,879
-4,481

330.0
380.2
382.0
304.5
286.4
319.0
312.6
298.7

5,816
6,695
6,843
5,503
5,375
5,715
5,525
5,240

72
-4
53
-91
150
-11
44
47

5,362
6,414
5,684
4,399
2,965
4,374
3,682
3,676

-5,290
-6,446
-5,633
-4,505
-2,815
-4,385
-3,645
-3,643

72.2
87.1
75.0
59.7
36.9
59.6
49.2
49.9

9,991
10,170
9,955
9,421
9,196
9,344
9,231
8,820

1,155
711
1,040
2,128
3,297
2,082
2,775
2,669

3,953
4,156
2,665
2,248
2,128
3,207
2,680
2,272

*“655
r801
r874
rl ,303
1,696
1,208
1,441
1,398

r3,297
'3,355
'1,791
'945
432
1,999
1,239
874

5,838
6,707
5,028
3,605
4,274
6,089
4,768
3,339

231

2,007
1,806
1,678
1,385
1,088
1,430
1,344
1,236

201
233
288
259
339
211
317
299

1,806
1,574
1,390
1,127
750
1,219
1,026
937

4,059
3,538
3,890
3,735
3,715
3,642
3,426
3,425

11,748
13,327
12,908
11,188
10,855
11,416
11,330
10,635

1,155
711
1,040
2,067
3,297
2,082
2,775
2,438

1,945
2,349
987
862
1,040
1,777
1,336
1,037

r455
r568
r586
'1,044
1,357
997
1,124
1,099

'1,491
'1,781
'401
' —182
-318
780
212
-62

585
493
659
781
781
755
651
718

542
460
644
781
781
755
651
713

5,274
6,235
6,199
4,722
4,594
4,960
4,873
4,527

458
533
412
397
457
565
584
437

r 163
r258
r223
r643
550
503
528
481

'294
'274
'188
'-246
-93
63
56
-44

4,629
3,756
4,272
5,022
6,231
4,969
5,549
5,144

3,517
3,078
3,246
2,955
2,934
2,887
2,775
2,712

6,474
7,092
6,709
6,466
6,261
6.456
6.456
6,108

1,488
1,817
576
466
583
1,212
753
600

291
310
363
402
808
495
596
619

1,196
1,507
213
64
-225
717
157
-19

8 in New York City
1976—Apr. 7........
14........
21........
28........
May 5........
12........
19......
26........
38 outside
New York City

1976—Apr. 7........
14........
21........
28........
May 5........
12........
19........
26........
5 in City of Chicago

1976—Apr. 7........
14........
21........
28........
May 5........
12........
19........
26........
33 others

1976—Apr. 7........
14........
21........
28........
May 5........
12........
19........
26........

1Based upon reserve balances, including all adjustments applicable to
the reporting period. Prior to Sept. 25, 1968, carryover reserve deficiencies,
if any, were deducted. Excess reserves for later periods are net of all carry­
over reserves. Beginning with week ending Jan. 7, 1976, adjusted to
include waivers of penalties for reserve deficiencies in accordance with
Board policy change effective Nov. 19, 1975.
2 Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank’s weekly average pur­
chases and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing




1,112
679
1,025
2,067
3,297
2,082
2,775
2,432

banks, repurchase agreements (purchases of securities from dealers
subject to resale), or other lending arrangements.
4 Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
Note.—Weekly averages of daily figures. For description of series
and back data, see Aug. 1964 Bulletin, pp. 944-74. Revised data for
Jan. 1976 may be obtained from the Public Information Office, Office of
the Secretary, Board of Governors of the Federal Reserve System, Wash­
ington, D.C. 20551.

A6

F.R. BANK INTEREST RATES □ JUNE 1976
CURRENT RATES
(Per cent per annum)

Loans to member banks—
Under Sec. 10(b) 2

Under Secs. 13 and 13a1

Federal Reserve
Bank

Special rate3

Regular rate
Rate on Effective Previous Rate on Effective Previous
rate
rate
date
date
5/31/76
5/31/76

Boston................
New York...........
Philadelphia........
Cleveland............
Richmond...........
Atlanta...............
Chicago..............
St. Louis.............
Minneapolis........
Kansas City.........
Dallas.................
San Francisco......

5Vi
5Vi
5Vi
5Vi
5Vi
5%
5%
5Vi
5Vi
5Vi
5i/i
5%

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

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

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

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

1Discounts of eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase.
2 Advances secured to the satisfaction of the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the Section 13 rate.

Loans to all others under
last par. Sec. 134

6Vi
6Vi
6Vi
6Vi
6%
6Vi
6%
61/i
6%
6Vi
6i/i
6Vi

Rate on Effective Previous Rate on Effective Previous
5/31/76 date3
rate
date
rate
5/31/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

6Vi
6i/i
61/i
6%
6Vi
6Vi
6Vi
6i/i
6%
6Vi
6Vi
6%

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

8Vi
8i/i
8Vi
8Vi
8i/i
8Vi
8i/i
8i/i
8i/i
8Vi
8Vi
8Vi

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

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

3Applicable to special advances described in Section 201.2(e)(2) of
Regulation A.
4 Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof.

S U M M A R Y OF EARLIER C HA N G ES

(Per cent per annum)
Effective
date
In effect Dec. 31, 1955
1956—Apr. 13..........
20..........
Aug. 24..........
31........ .
1957—Aug. 9........ .
23
.
Nov. 15........
Dec. 2........
1958—Jan. 22........ .
2 4
.
Mar. 7..........
13
.
21........ .
Apr. 18........
May 9 .........
Aug. 15........ .
Sept. 12........
23........
Oct. 24........
Nov. 7........
1959—Mar. 6........
16........
May 29........
June 12........
Sept. 11........
18........
1960—June 3........
10........
14
Aug. 12........
Sept. 9........
1963—July 17........
26........

Range
F.R.
(or level)— Bank
of
All F.R.
N.Y.
Banks
2 Vi

2 l/i

2Vi-3
23/4-3
2K-3
3
3 -3 Vi
3Vi
3 -3 Vi
3
2%-3
2%-3
2%-3
2 V 4 -2 V 4
2%
134-214
1h
l%-2

2%
2%
3
3
3
3%
3
3
3
2%
2%
21/4
2%

m

-2
2

-214
2Vi
2Vi-3
3
3 -3 Vi
3Vi
3Vi-4
4
3Vi-4
3fc-4
3Vi
3 —
3Vi
3
3 -3%
3Vi

2

iy 4
m

iy4

2
2
2

2^
3
3
3}i
3%
4
4
4
3Vi

I*

3
3Vi
3i/i

Effective
date
1964—Nov. 24.
30.
1965—Dec. 6.
13.
1967—Apr. 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,
Dec. 1
4,
11
1971—Jan. 8
15.
19
22
29
Feb. 13
19
July 16
23

Note.—Rates under Secs. 13 and 13a (as described in table and notes
above). For data before 1956, see Banking and Monetary Statistics, 1943,
pp. 439-42, and Supplement to Section 12, p. 31.




Range
F.R.
(or level)— Bank
All F.R.
of
N.Y.
Banks
3Vi-4
4
4 -4Vi
4Vi
4 -4i/i
4
4 -4Vi
41/2
4Vi-5
5
5 -5i/i
51/i
51/4-5Vi
5%
5i4-5Vi
5Vi
5Vi-6
6
5%-6
5%-6
53/4
5Vi-5y4
5%-5%
5i/i
51/4-5Vi
51/4
5 -51/4
5 - 51/4
43/4-5
4!4
43/4-5
5

4
4
4i/i
4i/i
4
4
4Vi
4%
4Vi
5
5Vi
5i/i
5Vi
51/4
5Vi
51/i
6
6
6
534
53/4
53/4
5Vi
51/i
51/4
51/4
51/4
5
5
5
434
5
5

Effective
date
1971—Nov. 11................
19................
Dec. 13................
17................
24................
1973—Jan. 15................
Feb. 26........... .
Mar. 2................
Apr. 23................
11................
18................
June 11................
15................
July 2................
23................
1974—Apr. 25................
30...............
Dec. 9................
16................
1975 Jan. 6................
10 ................
24................
Feb. 5................
7................
Mar. 10................
14................
May 16................
23................
1976 Jan. 19................
23................
In effect May 31, 1976---

Range
F.R.
(or level)— Bank
of
All F.R.
N.Y.
Banks
434-5

434
41/2-434
4Vi-4%
41/2

5
5 -5 Vi
51/2
5Vi-534
5*4
534-6
6
6 -6 Vi
6Vi
7
7 -7^
7Vi
7Vi-8
8
734-8
734
71/4- 73/4
71/4-734
714
634-714
634
61/4-634
614
6 - 61/4

5
434
434
41/i
4Vi
5
5Vi
5i/i
5Vi
534
6
6
6i/i
6Vi
7
7i/i
7i/i
8
8
734
734
734
71/4
71/4
6%
f/i
61/4

6

61/4
6
6

5Vi-6
5i/i
5Vi

5%
5i/i
5Vi

JUNE 1976

d

RESERVE REQUIREMENTS

A7

R ESE R V E R E Q U IR E M E N T S O N D E P O S IT S O F M E M B E R B A N K S
(Deposit intervals are in millions o f dollars. Requirements are in per cent o f deposits.)

Net demand 2
Effective
date 1

Reserve city
0-5

In effect
Jan. 1, 1963............
1966—July 14,21........
Sept. 8,15........
1967—Mar. 2.............
Mar. 16...........
1968—Jan. 11,18........
1969—Apr. 17............
1970—Oct. 1..............

Time 3
(all classes of banks)
Other

Over 5

0-5

Other time

Savings
Over 5

0-5
4

12

16^

17
17%

16Vi
17

12
12%

Over 5

4
3%
3

4

5
6

?*

\TA

5

Beginning Nov. 9, 1972
Time 3

Net demand2,4

Other time
Effective
date

0-2

1972—Nov. 9..................
Nov. 16................
1973—July 19.................
1974 Dec. 12................
1975—Feb. 13................
Oct. 30................
1976 Jan. 8...................
In effect May 31, 1976....

8

7%

2-10

10-100

10

12

10%

12'A

10

12

100400

6 16%
13
13%
13

Over
400

17%

Savings

0-5, maturing in—

180
180
30-179 days to 4 years 30-179 days to 4 years
days 4 years or more days 4 years or more
73

73

18
17%
161&

10

12

13

16%

75

2\
3

3

82%
82%

81

3

81

81

82%
82%

81

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 of collection and demand
balances due from domestic banks.
(b) Requirement schedules are graduated, and each deposit interval
applies to that part of 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 of 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 4 per cent. The requirement was 10 per cent originally,
was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent
effective June 21, 1973, and was reduced to the current 4 per cent effective
May 22, 1975. Initially certain base amounts were exempted in the com­
putation of the requirements, but effective Mar. 14, 1974, the last of 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.
Beginning Nov. 10, 1975, profitmaking businesses may maintain savings
deposits of $150,000 or less at member banks. For details of 1975 action,
see Regulations D and Q, and also Bulletins for Oct., p. 708, and Nov.,
p. 769.
Notes 2(b) and 2(c) above are also relevant to time deposits.
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 of member banks were restructured to provide that each




1

6

3
7%

Over 55, maturing in—

6
Minimum
10
7
3

Maximum
22
14
10

member bank will maintain reserves related to the size of 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 of business of a reserve city bank, and the presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are F.R. Banks or branches are also
reserve cities. Any banks having net demand deposits of $400 million or
less are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see Regulation D and appropriate sup­
plements and amendments.
5A marginal reserve requirement was in effect between June 21, 1973,
and Dec. 11, 1974, against increases in the aggregate of the following types
of obligations: (a) outstanding time deposits of $100,000 or more, (b)
outstanding funds obtained by the bank through issuance by a bank's
affiliate of obligations subject to existing reserve requirements on time
deposits, and (c) beginning July 12, 1973, funds from sales of finance bills.
The requirement applied to balances above a specified base, but was not
applicable to banks having obligations of these types aggregating less
than $10 million. For details, including percentages and maturity classifi­
cations, see “Announcements” in Bulletins for May, July, Sept., and
Dec. 1973 and Sept. and Nov. 1974.
6The 16Vi 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.
7 See columns above for earliest effective date of this rate.
8The average of reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law. For details, see Regu­
lation D.
Note.—Required reserves must be held in the form of deposits with
F.R. Banks or vault cash.

A8

MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ JUNE 1976
M A X IM U M IN T E R E S T R A T E S PA Y A B LE O N T IM E A N D S A V IN G S D E P O S IT S
(Per cent per annum)
Rates July 20, 1966—June 30, 1973

Rates beginning July 1, 1973

Effective date
Type and size
of deposit

Effective date

July 20, Sept. 26, Apr. 19, Jan. 21,
1968
1970
1966
1966

Savings deposits.....................
Other time deposits:1
Multiple maturity:2
30-89 days..................
90 days to 1 year..........
1-2 years....................
2 years or more............
Single-maturity:
Less than $100,000:
30 days to 1 year..........
1-2 years....................
2 years or more...........
$100,000 or more:
30-59 days..................
60-89 days..................
90-179 days.................
180 days to 1 year........
1 year or more.............

4%
4

4 Vi

5

18

5

5
5Vi

5'A

5%

5Va

5Vi

5%
5%
6

(3)
(3)
(3)
(3)
(3)

6 V4

Type and size
of deposit

July 1,
1973

Savings deposits...................
Other time deposits (multipleand single-maturity):1, 2
Less than $100,000:
30-89 days....................
90 days to 1 year...........
1-2Vi years...................
2Vi years or more..........
Minimum denomination
of $1,000:4
4-6 years...................
6 years or more..........
Governmental units........
$100,000 or more.............

1For exceptions with respect to certain foreign time deposits, see
Bulletin 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.
3Maximum 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:
6lA per centl
30-59 days
June 24, 1970
60-89 days
6Vi per cent j
90-179 days
6% per cent j
180 days to 1 year
7 per cent [
May 16, 1973
1 year or more
7Vi per cent]
Rates on multiple-maturity time deposits in denominations of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturing deposits was eliminated.
4 Effective Dec. 4, 1975, the $1,000 minimum denomination does not
apply to time deposits representing funds contributed to an Individual
Retirement Account established pursuant to 26 U.S.C. (I.R.C. 1954) §408.
5Between July 1 and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000.
The amount of such certificates that a bank could issue was limited to

5
5Vi

Nov. 1,
1973

Nov. 27, Dec. 23,
1974
1974

5
5Vi

6Vi

5Vi
6
6Vi

(5)
(6)
(3)

(<o
(3)

7V4
(3)

5 per cent of its total time and savings deposits. Sales in excess of that
amount were subject to the 6Vi per cent ceiling that applies to time de­
posits maturing in 2Vi years or more.
Effective Nov. 1, 1973, a ceiling rate of 7Vi per cent was imposed on
certificates maturing in 4 years or more with minimum denominations
of $1,000. There is no limiation on the amount of these certificates that
banks may issue.
6 Prior to Nov. 27, 1974, no distinction was made between the time
deposits of governmental units and of other holders, insofar as Regula­
tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974,
governmental units were permitted to hold savings deposits and could
receive interest rates on time deposits with denominations under $100,000
irrespective of maturity, as high as the maximum rate permitted on such
deposits at any Federally insured depositary institution.
Note.—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 Bulletin.

(Per cent of market value)

Beginning
date

For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
Ending
date

1937—Nov. 1
1945—Feb.
1945—Feb. 5
July
July 5
1946—Jan.
1946—Jan. 21
1947—Jan.
1947—Feb. 1
1949—Mar.
1949—Mar. 30
1951—Jan.
1953—Feb.
1951—Jan. 17
1953—Feb.
1955—Jan.
1955—Jan.
Apr.
Apr.
1958—Jan.
1958—Jan.
Aug.
Aug.
Oct.
1960—July
Oct.
1960—July
1962—July
1963—Nov.
1962—July
1963—Nov.
1968—Mar.
1968—Mar. 11
June
June 8
1970—May
1970—May 6
1971—Dec.
1971—Dec.
1972—Nov.
1972—Nov.
1974—Jan.
Effective Jan. 3, 1974.

20.
31.
29.
16.
19.
3.
22.
'"
15.
4.
15.
27.
9.
5.
10.
7..
5..
3 ..
22..
2 ...

On margin stocks

On convertible bonds

40
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55
65
50

50
60
50
50
50
50

On short sales
(T)
50
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55
65
50

Note.—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 (100per 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.




5

5%
6
6Vi

m

M A R G IN R E Q U IR E M E N T S

Period

5

6
6Vi

6

JUNE 1976 □ OPEN MARKET ACCOUNT

A9

T R A N S A C T IO N S OF T H E SY ST E M O P E N M A R K ET A C C O U N T
(In millions o f dollars)

Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Treasury bills1
Period

1970..
1971..
1972..
1973.
1974.
1975.
1975—Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec..
1976—Jan...
Feb..
Mar..
Apr..

Others within 1 year2

1-5 years

5-10 years

Over 10 years

Exch.,
Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or
pur­ sales tions
pur­ sales shifts, or
sales maturity pur­ sales maturity pur­ sales maturity
chases
chases
redemp­
shifts chases
shifts chases
shifts
tions
11,074
8,896
8,522
15,517
11,660
11,562
2,119
903
421
312
2,118
1,263
983
1,984
243
1,664
1,069
2,869

5,214
3,642
6,467
4,880
5,830
5,599
318
354
161
1,505
282
‘*766
652
1,239
511
1,355

2,160
1,064
2,545
3,405
4,550
6,431
506
407
612
800
400
200
400
919
200
600
389
600
1,000

Period

-3,131
691
-2,144
278
48
-265
28
-1,153
349
72

Gross Redemp­ Gross
tions
sales
sales

1970........... 12,362 5,214
1971........... 12,515 3,642
1972........... 10,142 6,467
1973........... 18,121 4,880
1974........... 13,537 5,830
1975........... 20,892 5,599
3,189
318
1975—Apr...
953
354
May..
June..
1,217
161
July..
1,505
Aug... ' ” 2*574
282
2,940
Sept...
Oct...
1,263 ...... 766
1,693
Nov. .
652
2,281
Dec...
1976—Jan.. .
563 1,239
Feb...
2,003
Mar. .
1,380
618
Apr...
3,233 1,425

-3,483
-6,462
2,933
-140
-1,314
-3,553

Matched
sale-purchase
transactions
(U.S. Govt,
securities)

Total outright1

Gross
pur­
chases

99
1,036
125
1,396
450
3,886
148
50
20
2,002

2,160
2,019
2,862
4,592
4,682
9,559
506
407
450
800
2,389
200
400
919
200
600
200
600
1,000

12,177
16,205
23,319
45,780
64,229
151,205
12,375
2,996
12,914
15,532
14,234
19,931
15,886
14,442
10,559
11,407
7,551
12,697
15,138

Repurchase
agreements
(U.S. Govt,
securities)

5,430
4,672
-1,405
-2,028
-697
4,275
6,635
-529
1,299
-278
-48
-135
-28
107
70

249
933
539
500
434
1,510
274

Net
change
in U.S.
Govt,
securi­
ties

Gross
pur­
chases

Gross
sales

12,177
16,205
23,319
45,780
62,801
152,132
12,216
3,044
13,026
15,139
13,730
19,835
16,113
15,207
10,058
11,503
7,957
12,082
14,899

33,859
44,741
31,103
74,755
71,333
140,311
12,774
19,489
15,219
5,977
8,146
16,664
13,699
14,342
8,464
18,135
17,753
16,000
17,456

33,859 4,988
43,519 8,076
32,228
-312
74,795 8,610
70,947 1,984
139,538 7,434
8,551 6,428
21,952 -2,224
16,810 -873
6,146 -2,866
6,881
663
14,857 4,451
13,838
186
17,275 -2,047
7,247 2,797
14,919 2,037
-982
20,943
14,783
763
15,963 2,061

-1,845
685
-2,094
895
1,675
-4,697
-3,801

180

64
137
155
78
100
63
63
51

174
-349
-72

Gross
pur­
chases

1Before Nov. 1973 Bulletin, included matched sale-purchase trans­
actions, which are now shown separately.
2 Includes special certificates acquired when the Treasury borrows
directly from the Federal Reserve, as follows (millions of dollars): June
1971, 955; Sept. 1972, 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974,
131; Mar. 1975, 1,560; Aug. 1975, 1,989.




848
1,338
789
579
797
2,863
485
488
150
562
267
118
110
177
185
249

Repur­
chase
agree­
Gross Sales or ments,
pur­ redemp­ net
chases tions

353
394
284
239
297

370
239
322
246
2
97
6
2
40
1

101
-88
29
469
-392
883
-567
-255
-61
90
203
-124
-169
118
187
-236
217
-155

298

47
124
244
71
73
59
24
38

300

Outright

-102
150
250
87
205
848

’io9

-1,444

Federal agency obligations

485
1,197
865
3,087
1,616

93
311
167
129
196
1,070
164

‘300
ioo
200

Bankers
acceptances,
net

Out­
right
-6
22
-9
-2
511
163
24
55
-62
3
-1
14
49
-21
15
5
-70
-138
-50

Net
change 3

Repur­
chase
agree­
ments
181
-145
-36
420
-35
496
-375
-121
156
94
50
-300
385
98
-109
-31
162

4,982
8,866
272
9,227
6,149
8,539
7,829
-3,207
-1,317
-2,926
1,222
5,155
445
-2,537
3,315
2,567
-1,101
812
2,019

3 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers acceptances.
Note.—Sales, redemptions, and negative figures reduce System hold­
ings; all other figures increase such holdings. Details may not add to
totals because of rounding.

A10

FEDERAL RESERVE BANKS □ JUNE 1976
C O N SO L ID A T E D S T A T E M E N T OF C O N D IT IO N OF ALL FED ER AL R E SE RV E B A N K S
(In millions o f dollars)
Wednesday

End o f month

1976

Item

Assets
Gold certificate account...........................
Special Drawing Rights certificate account.
Cash.............................................
Loans:
Member bank borrowings............
Other........................................
Acceptances:
Bought outright..........................
Held under repurchase agreements.
Federal agency obligations:
Bought outright..........................
Held under repurchase agreements.
U.S. Govt, securities:
Bought outright:
Bills.......................
Certificates—Special.
Other..
Notes.....................
Bonds........... .........
Total bought outright1................
Held under repurchase agreements.
Total U.S. Govt, securities.
Total loans and securities................
Cash items in process of collection...
Bank premises...............................
Operating equipment.......................
Other assets:
Denominated in foreign currencies.
All other.......... .........................
Total assets.
Liabilities
F.R. notes...................................
Deposits:
Member bank reserves...............
U.S. Treasury—General account.
Foreign....................................
Other:
All other 2 ...........................
Total deposits.
Deferred availability cash items.........
Other liabilities and accrued dividends.
Total liabilities.
Capital accounts

May 19

May 12

11,598
500
349
644

11,599
500
343
541

11,599
500
339
258

11,599
500
325
41

11,599
500
337
246

11,598
500
357
397

11,599
500
342
31

11,620
500
366
24

435
280
6,827
105

461
420
6,607
150

481
237
6,607
85

488
226
6,607
72

486
323
6,607
196

439
436
6,827
154

490
505
6,607
132

744
121
5,091
316

37,096

36,350

36,672

36,776

36,379

36,650

37,004

37,411

44,856
6,001
87,953
2,000
89,953
98,244
p 7,831
341
18
934
2,527
122,342

44,856
6,001
87,207
3,080
90,287
98,466
8,980
340
19
928
2,255
123,430

44,941
5,916
87,529
2,103
89,632
97,300
8,586
339
18
936
3,092
122,709

44,941
5,916
87,633
2,128
89,761
97,195
9,121
340
18
936
3,243
123,277

44,940
5,916
87,235
4,142
91,377
99,235
8,266
338
18
936
3,059
124,288

44,856
6,001
87,507
3,105
90,612
98,865
p 5,879
343
18
938
2,589
p 121,087

44,941
5,916
87,861
3,953
91,814
99,579
6,375
337
18
932
2,993
122,675

42,038
4,413
83,862
1,760
85,622
91,918
6,326
284
2
4
2,694
113,714

78,023
26,470
7,655
251
941
* 35,317
5,567
1,122
120,029

77,900
27,632
7,861
230

77,594
29,702
6,046
298

77,130
27,973
9,023
287

36,241
5,953
1,138
121,232

78,127
29,255
5,795
332
588
35,970
5,405
1,124
120,626

36,841
5,781
1,096
121,312

38,024
5,687
1,119
121,960

77,999
27,115
6,745
303
679
v 34,842
4,746
1,117
p 118,704

76,898
27,140
9,806
305
762
38,013
4,308
1,091
120,310

70,852
26,445
7,036
310
1,159
34,950
4,516
1,099
111,417

953
929
431
122,342

952
929
317
123,430

947
929
207
122,709

946
929
90
123,277

946
929
453
124,288

953
929
501

947
929
489
122,675

908
897
492
113,714

45,512

46,349

45,723

45,624

45,384

45,867

45,603

40,502

82,446
11,597
302
72,580
84,479

83,093
11,596
302
73,035
84,933

82,456
11,546
302
72,680
84,528

75,777
9,876
190
69,850
79,916

p

p

p

May 5

Apr. 28

May 26

p

Capital paid in.....................................................
Surplus...............................................................
Other capital accounts..........................................
Total liabilities and capital accounts.......................
Marketable U.S. Govt, securities held in custody for
foreign and international accounts.......................

1975

1976

May 31

p

Apr. 30

May 31

Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to Bank)........
Collateral held against notes outstanding:
Gold certificate account...........................
Special Drawing Rights certificate account.
Acceptances...........................................
U.S. Govt, securities...............................
Total collateral.




82,998
11,596
302
73,035
84,933

82,788
11,596
302
72,735
84,633

82,614
11,596
302
73,595
85,493

82,488
11,584
302
72,680
84,566

JUNE 1976 □ FEDERAL RESERVE BANKS; BANK DEBITS

A ll

M A T U R IT Y D IS T R IB U T IO N OF LOANS A N D U .S . G O V E R N M E N T S E C U R ITIE S
HELD BY FEDERAL RESERVE B AN K S

(In millions of dollars)
Wednesday

End of month

1976

Item

Within 15 days..................................................
16-90 days........................................................
91 days to 1 year...............................................
Acceptances—Total..............................................
Within 15 days..................................................
16-90 days........................................................
Within 15 days1................................................
16-90 days........................................................
91 days to 1 year...............................................
Over 10 years....................................................
Federal agency obligations—Total..........................
.Within 15 days1................................................
91 days to 1 year...............................................
5-10 years........................................................

1976

1975

May 26

May 19

May 12

May 5

Apr. 28

May 31

Apr. 20

May 31

644
642
2

542
539
3

258
254
4

41
39
2

246
244
2

397
390
7

30
27
3

23
20
3

715
343
186
186
89,953
5,981
18,257
25,570
27,496
8,088
4,561
6,932
277
98
1,004
3,356
1,504
693

881
500
193
188
90,287
7,064
17,392
25,686
27,496
8,088
4,561
6,757
257
208
962
3,255
1,422
653

718
316
199
203
89,632
7,447
14,771
24,697
30,570
7,671
4,476
6,692
129
270
962
3,255
1,422
654

714
291
206
217
89,761
6,885
15,274
24,885
30,570
7,671
4,476
6,679
72
315
962
3,255
1,422
653

809
379
235
195
91,377
8,412
16,781
23,395
30,642
7,671
4,476
6,803
238
273
962
3,255
1,422
653

875
515
183
177
90,612
5,218
19,637
25,612
27,496
8,088
4,561
6,981
326
199
903
3,356
1,504
693

995
556
226
213
91,814
7,515
17,358
24,224
30,570
7,671
4,476
6,739
174
273
962
3,255
1,422
653

865
229
394
242
85,622
5,087
21,911
20,117
28,463
6,957
3,087
5,407
390
189
529
2,529
1,209
561

1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
B A N K D EB ITS A N D DEPO SIT TU R N O V ER

(Seasonally adjusted annual rates)
Debits to demand deposit accounts1
(billions of dollars)
Period
Total
233
SMSA’s
1975—Apr..........................
May........................
June........................
July.........................
Aug.........................
Sept.........................
Oct..........................
Nov.........................
Dec..........................
1976—Jan..........................
Feb..........................
Mar.........................
Apr..........................

Leading SMSA’s
N.Y.

22,705.7 10,810.3
22,738.6 10,826.1
22,503.5 10,612.2
22,827.9 10,709.5
23,269.4 10,628.8
23,181.9 10,585.0
24,137.1 11,801.5
24,067.7 11,529.9
23,565.1 10,970.9
23,845.0 11,517.7
25,524.9 12,212.0
*•26,475.0 12,629.6
25,777.3 12,482.8

Total 232
SMSA’s
(excl.
6 others2 N.Y.)

226
other
SMSA’s

Total
233
SMSA’s

N.Y.

4,770.6 11,895.4
4,852.6 11,912.5
4,756.7 11,891.3
4,841.1 12,118.3
5,125.1 12,640.5
5,153.0 12,596.9
4,921.3 12,335.6
4,937.3 12,537.8
4,932.5 12,594.2
4,789.0 12,327.3
5,321 .1 13,312.9
r5,561.5 r13,845.4
5,282.1 13,294.5

7,124.9
7,059.9
7,134.6
7,277.2
7,515.4
7,443.8
7,414.3
7,600.5
7,661.8
7,538.3
7,991.8
'8,283.9
8,012.4

127.5
128.9
124.4
126.2
130.4
128.8
134.0
134.0
131.0
132.4
140.9
144.6
140.3

330.3
333.9
328.6
331.0
335.0
330.7
364.0
360.8
351.8
366.0
375.4
377.5
374.9

1Excludes interbank and U.S. Govt, demand deposit accounts.
2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.




Turnover of demand deposits
Total 232
SMSA’s
(excl.
6 others2 N.Y.)

Leading SMSA’s

114.3
120.1
114.2
115.7
124.4
123.8
118.7
119.5
118.4
J15.4
128.0
131.4
124.1

81.8
82.8
80.0
81.6
86.2
85.1
83.5
84.9
84.7
82.9
89.6
92.5
88.4

226
other
SMSA’s
68.8
68.2
66.7
68.2
71.2
70.0
69.8
71.5
71.6
70.3
74.6
77.2
74.3

Note.—Total SMSA’s include some cities and counties not designated
as SMSA’s.
For back data see pp. 634-35 of the July 1972 Bulletin.

A12

MONEY STOCK □ JUNE 1976
M E A S U R E S OF T H E M O N EY ST O C K
(In billions o f dollars)

Seasonally adjusted
Period

Mi

Mz

M2

Not seasonally adjusted

Mi

Mb

Mi

Mi

Mi

Mi

921.8
983.8
1,020.0
1,025.7
1,044.5
1,055.0
1,057.1
1,062.8
1,070.4
1,080.6
1,094.6
1,107.1
1,113.3
1,129.0
1,149.7

640.5
708.0
716.9
716.0
725.8
729.1
728.4
732.2
736.9
743.0
752.8
753.7
748.4
755.1
766.1

985.8
1,074.3
1,105.8
1,109.8
1,126.8
1,136.3
1,138.3
1,145.5
1,154.1
1,163.5
1,178.1
1,185.6
1,186.3
1,200.8
1,219.1

M2

Composition of:measures is described in the Note below.
1973-—Dec..........................
1974-—Dec..........................
1975-—Apr..........................
May........................
June........................
July.........................
Aug.........................
Sept.........................
Nov.........................
Dec..........................
1976Feb.. i .....................
Mar.........................
Apr..........................

270.5
283.1
284.9
287.6
291.0
291.9
293.2
293.6
293.4
295.6
294.8
295.1
296.5
298.0
301.7

571.4
612.4

626J

633.7
642.4
647.5
650.6
652.9
655.8
662.1
664.3
670.2
678.5
683.4
691.9

919.5
981.6
1,012.7
1,025.3
1,040.2
1,051.6
1,060.6
1,068.1
1,075.8
1,086.5
1,092.9
1,103.7
1,117.2
1,127.3
1,141.3

982.9
1,071.4
1,101.1
1,110.4
1,124.3
1,133.7
1,139.3
1,147.1
1,156.6
1,168.3
1,175.8
1,182.9
1,192.6
1,200.5
1,212.7

634.9
702.2
715.1
718.8
726.5
729.6
729.3
731.9
736.7
743.9
747.2
749.4
753.8
756.5
763.4

Note.—Composition of the money stock measures is as follows:
Mi: Averages of daily figures for (1) demand deposits of commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
M2: Averages of daily figures for Mi plus savings deposits, time de­
posits open account, and time certificates of deposit other than negoti­
able CD’s of $100,000 of large weekly reporting banks.
Mt: M 2 plus the average of the beginning and end-of-month deposits

278.3
291.3
286.5
282.9
290.3
292.1
290.0
291.7
292.3
297.4
303.2
301.0
292.9
295.2
303.3

576.5
617.5
631.1
631.9
643.5
647.8
647.2
649.5
653.2
660.2
669.3
675.3
675.3
683.3
696.7

of mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
Mk: M2plus large negotiable CD’s.
Mt:Mz plus large negotiable CD’s.
For a description of the latest revisions in Mi, M2, Mz, M\, and Mi, see
“Revision of Money Stock Measures” on pp. 82-87 of the Feb. 1976
Bulletin. Beginning Oct. 1975, money stock measures and related data
have been revised to incorporate Benchmark Data from the Dec. 31, 1975,
call report.
Latest monthly and weekly figures are available from the Board’s H.6
release. Back data are available from the Banking Section, Division of
Research and Statistics.

C O M P O N E N TS OF M O N E Y STOCK M EASU RES A N D RELATED IT E M S

(In billions of dollars)
Seasonally adjusted

Not seasonally adjusted

Commercial banks
Period

1973—Dec.
1974—Dec.
1975—Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
1976—Jan..
Feb.
Mar.
Apr.

Cur­
ren­
cy

61.5
67.8
69.5
70.2
71.0
71.3
71.9
72.0
72.6
73.4
73.7
74.2
75.1
75.7
76.7

Commercial banks

Time and savings
deposits
De­
mand
de­
pos­
CD’s1 Other Total
its

209.0
215.3
215.4
217.4

220.0
220.6
221.3
221.6
220.8
222.1
221.0
220.8
221.5
222.3
225.0

63.5
89.8
88.4
85.1
84.1
82.1
78.8
79.1
80.9
81.8
82.9
79.2
75.4
73.2
71.4

300.9
329.3
341.8
346.1
351.4
355.5
357.4
359.2
362.4
366.5
369.6
375.2
381.9
385.4
390.2

364.4
419.1
430.1
431.2
435.5
437.6
436.2
438.3
443.3
448.3
452.4
454.4
457.3
458.5
461.6

Cur­
ren­
cy

348.0
369.2
386.0
391.6
397.8
404.1
410.0
415.2
420.0
424.4
428.6
433.5
438.8
444.0
449.4

62.7
69.0
69.1
70.0
71.2
71.9
72.1
71.9
72.5
73.9
75.1
73.8
74.1
75.1
76.3

1Negotiable time certificates of deposit issued in denominations of
$100,000 or more by large weekly reporting commercial banks.
2 Average of the beginning and end-of-month figures for deposits of
mutual savings banks, for savings capita] at savings and loan associations,
and for credit union shares.




Demand deposits

Non­
bank
thrift
insti­
tu­
tions2

Mem­
ber

156.5
159.7
156.9
153.4
157.2
157.9
155.8
157.0
156.6
159.0
162.1
162.0
155.7
156.8
161.7

Do­
mes­
tic
Total
nonmem­
ber
56.3
58.5
57.4
56.6
58.9
59.4
59.0
59.7
60.3
61.4
62.6
62.1
59.9
60.2
62.3

215.7
222.2
217.4
212.9
219.1
220.3
217.8
219.9
219.9
223.5
228.1
227.2
218.8
220.1
227.0

3At all commercial banks.
See also Note above.

Time and savings
deposits

CD’s1 Other

Total

298.2
326.3
344.6
349.1
353.2
355.7
357.3
357.7
360.8
362.8
366.2
374.3
382.5
388.1
393.4

362.2
416.7
430.4
433.2
435.5
436.9
438.4
440.4
444.5
445.6
449.6
452.8
455.5
459.9
462.8

64.0
90.5
85.8
84.1
82.3
81.3
81.1
82.7
83.7
82.9
83.5
78.5
73.0
71.8
69.4

Non­ U.S.
bank Govt.
de­
thrift
insti­ pos­
tu­
its3
tions2

345.3
366.3
388.9
393.8
401.0
407.2
409.9
413.3
417.2
420.4
425.3
431.9
438.0
445.7
453.0

6.3
4.9
4.0
4.1
4.2
3.4
2.7
3.9
3.4
3.5
4.1
3.8
4.5
3.9
3.8

JUNE 1976 □ BANK RESERVES; BANK CREDIT

A13

A G G R E G A TE R E SE R V E S A N D M E M B E R B A N K D E P O S IT S
(In billions of dollars)

Member bank reserves, S.A.1

Deposits subject to reserve requirements 3
S.A.

Period

Total

1973—Dec....
1974—Dec. i..
1975—Apr....
May1..
June...
July. ..
Aug—
Sept....
Oct.1..
Nov....
Dec....
1976—Jan.i. .
Feb....
Mar__
Apr—

34.98
36.63
35.08
34.74
35.07
34.98
34.88
34.99
34.79
34.73
34.75
34.32
34.05
34.00
34.02

Non­
Re­
bor­
rowed quired

Avail­
able2

34.68
36.37
34.92
34.58
34.87
34.79
34.69
34.80
34.58
34.44
34.49
34.08
33.83
33.78
33.87

32.78
34.42
33.00
32.77
32.90
32.89
32.77
32.77
32.61
32.43
32.44
32.17
31.85
31.75
31.87

33.69
35.90
34.97
34.67
34.85
34.68
34.67
34.59
34.60
34.67
34.62
34.24
33.97
33.95
33.98

Total

442.8
486.9
494.1
493.7
499.5
498.3
496.3
498.4
500,1
505.9
506.0
506.2
507.6
507.8
509.8

N.S.A.

Demand
Time
and
savings Private U.S.
Govt.
279.7
322.9
329.7
328.6
330.5
330.8
328.4
329.8
333.1
336.1
338.7
338.9
339.5
339.4
340.2

Total member
bank deposits
plus nondeposit
items4

158.1
160.6
161.7
162.6
165.8
164.9
165.1
165.6
164.0
165.9
164.4
164.7
165.5
165.8
167.2

1Averages of daily figures. Member bank reserve series reflect actual
reserve requirement percentages with no adjustment to eliminate the
effect of changes in Regulations D and M. There are breaks in series
because of changes in reserve requirements effective Dec. 12, 1974, Feb.
13, May 22, and Oct. 30, 1975, and Jan. 8, 1976. In addition, effective
Jan. 1, 1976, statewide branching in New York was instituted. The sub­
sequent merger of a number of banks raised required reserves because of
higher reserve requirements on aggregate deposits at these banks.
2 Reserves available to support private nonbank deposits are defined
as (1) required reserves for (a) private demand deposits, (b) total time
and savings deposits, and (c) nondeposit sources subject to reserve re­
quirements, and (2) excess reserves. This series excludes required reserves
for net interbank and U.S. Govt, demand deposits.

5.0
3.4
2.7
2.5
3.2
2.6
2.8
3.0
3.0
3.9
3.0
2.6
2.6
2.5
2.5

Total

447.5
491.8
495.4
491.8
497.5
497.2
494.8
499.1
500.4
503.6
510.9
511.1
504.2
506.4
511.9

Demand
Time
and
savings Private U.S.
Govt.
278.5
321.7
329.1
329.8
330.2
330.2
330.5
332.2
334.7
334.3
337.2
337.9
337.5
339.6
340.2

164.0
166.6
163.2
159.0
164.2
164.5
162.3
164.0
163.3
166.7
170.7
170.3
163.4
163.9
168.8

5.0
3.5
3.1
3.0
3.1
2.5
2.0
2.9
2.5
2.6
3.1
2.9
3.4
2.9
2.9

S.A.

N.S.A.

449.4
495.3
500.8
501.2
506.5
505.1
503.3
505.5
508.0
514.1
514.4
514.1
r5l5.6
r516.0
517.3

454.0
500.1
502.2
499.2
504.5
504.0
501.8
506.1
508.3
511.9
519.3
519.0
r512.2
*•514.7
519.4

3Averages of daily figures. Deposits subject to reserve requirements
include total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits
except those due to the U.S. Govt., less cash items in process of collection
and demand balances due from domestic commercial banks.
4 “Total member bank deposits” subject to reserve requirements, plus
Euro-dollar borrowings, loans sold to bank-related institutions, and
certain other nondeposit items. This series for deposits is referred to as
“the adjusted bank credit proxy.”
Note.—Back data and estimates of the impact of required reserve
changes may be obtained from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Wash­
ington, D.C. 20551.

LOANS A N D IN V E S T M E N T S A T ALL C O M M E R C IA L B A N K S

(In billions of dollars)

Seasonally adjusted
Total
loans
and
invest­
ments 1

Date

1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
1975—June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1976—Jan.
Feb.
Mar.
Apr.
May

31__
31__
31__
315...
30....
30__
27__
24__
29__
26__
31__
28*>...
25*...
31*...
28*. ..
26p...

485.7
558.0
633.4
690.4
705.0
705.8
709.3
712.7
716.3
722.2
721.1
723.3
726.7
731.2
734.5
737.6

Loans
Plus
Total1 loans
sold2
320.9
378.9
449.0
500.2
490.8
489.9
490.2
491.5
495.0
498.5
496.9
497.3
497.8
499.7
500.5
500.6

Not seasonally adjusted

Commercial
and industrial
Total

Plus
loans
sold2

323.7 116.1
381.5 130.2
453.3 156.4
505.0 183.3
495.5 176.7
494.4 176.7
494.7 176.5
496.0 175.3
499.7 176.1
503.2 176.8
501.3 175.6
501.6 176.2
502.3 174.7
503.9 171.0
504.7 170.1
504.9 170.3

117.7
131.9
159.0
186.0
179.6
179.5
179.3
178.1
179.0
179.6
178.1
178.7
177.4
173.6
172.7
173.0

Total
loans
and
U.S.
invest­
Treas­ Other4 ments 1
ury
60.6
62.6
54.5
50.4
71.5
72.3
75.0
76.7
76.0
76.8
79.4
81.0
84.4
88.2
90.0
93.0

1Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright for banks’ own foreign branches,
nonconsolidated nonbank affiliates of the bank, the banks’ holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both “Total loans” and “Com­
mercial and industrial loans” were reduced by about $100 million.
3Reclassification of loans at one large bank reduced these loans by
about $400 million as of June 30, 1972 and by about $1.2 billion as of
March 31, 1976.
4 Farmers Home Administration insured notes included in “Other
securities” rather than in loans beginning June 30, 1971, when such notes
totaled about $700 million.
5Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in “Other
securities,” and $600 million in “Total loans and investments.”



Loans

Securities

104.2
116.5
129.9
139.8
142.7
143.6
144.1
144.5
145.3
146.9
144.8
145.0
144.5
143.3
144.0
144.0

497.9
571.4
647.3
705.6
709.3
703.9
706.1
712.5
714.6
722.4
737.0
721.4
720.8
729.6
732.1
735.1

Securities

Commercial
and industrial3

Plus
Total1 loans
sold2 Total
328.3
387.3
458.5
510.7
497.2
491.1
490.3
492.8
493.7
497.6
507.4
492.6
491.9
496.9
496.7
500.0

331.1 118.5
389.9 132.7
462.8 159.4
515.5 186.8
501.9 179.0
495.6 176.7
494.8 175.3
497.3 175.7
498.4 175.1
502.3 176.2
511.8 179.0
496.9 174.0
496.4 173.1
501.1 170.9
500.9 170.2
504.3 170.4

Plus
loans
sold2
120.2
134.4
162.0
189.6
181.9
179.5
178.1
178.5
178.0
179.0
181.5
176.5
175.8
173.5
172.8
173.1

U.S.
Treas­ Other4
ury
64.9
67.0
58.3
54.5
68.2
69.4
72.0
75.4
75.9
79.4
84.1
84.8
85.4
89.3
90.2
90.5

104.7
117.1
130.6
140.5
143.9
143.4
143.8
144.3
144.9
145.4
145.5
144.0
143.6
143.5
145.2
144.6

As of Oct. 31, 1974, “Total loans and investments” of all commercial
banks were reduced by $1.5 billion in connection with the liquidation
of one large bank. Reductions in other items were: “Total loans,” $1.0
billion (of which $0.6 billion was in “Commercial and industrial loans”),
and “Other securities,” $0.5 billion. In late November “Commercial and
industrial loans” were increased by $0.1 billion as a result of loan re­
classifications at another large bank.
Note.—Total loans and investments: Seasonally adjusted data revised
beginning 1968. Not seasonally adjusted data revised beginning July
1975. See this Bulletin, p. 554. Back data for 1959-75 available from
Banking Section, Division of Research and Statistics; for 1948-58, See.
Aug. 1968 Bulletin, pp. A-94—A-97. For description of seasonally
adjusted series for total loans and investments, see Dec. 1971 Bulletin,
pp. 971-73 and for commercial and industrial loans, see July 1972 Bul­
letin, p. 683. Data are for last Wed. of month except for June 30 and Dec.
31; data are partly or wholly estimated except when June 30 and Dec.
31 are call dates.

A14

COMMERCIAL BANKS □ JUNE 1976
P R IN C IP A L A S S E T S A N D L IA B IL ITIE S A N D N U M B E R , BY C L A S S O F B A N K

(Amounts in millions of dollars)
Loans and investments
Classification by
FRS membership
and FDIC
insurance

Total

Total
Deposits
assets—
Total
Interbank 3
Securities
lia­
Other
Cash bilities
assets 3 and
capital Total 3
Loans
Demand
l
U.S. Other
ac­
De­
2
Time 5
Treas­
counts4
mand Time
ury
U.S. Other
Govt.

Total Num­
Bor­ capital ber
row­
ac­
of
ings counts6 banks

Last-Wednesday-of-month series7
All commercial banks:
1941—Dec. 31...
1947—Dec. 31
1960—Dec. 31...
1970—Dec. 319..
1971-Dec. 31...
1972—Dec. 31...
1973—Dec. 31...
1974—Dec. 31...
1975—May 28...
June 30...
July 30...
Aug. 27...
Sept. 24...
Oct. 29...
Nov. 26...
Dec. 31...
1976—Jan, 28*..
Feb. 28p. .
Mar. 3lPio
Apr. 28*..
May 26*..
Members of
F.R. System:
1941—Dec. 31...
1947—Dec. 31...
1960—Dec. 31...
1970—Dec. 319..
1971—Dec. 31...
1972—Dec. 31...
1973—Dec. 31...
1974—Dec. 31...
1975—May 28...
June 30...
July 30...
Aug. 27...
Sept. 24...
Oct. 29...
Nov. 26...
Dec. 31...
1976—Jan. 28...
Feb. 28...
Mar. 31 io.
Apr. 28p. .
May 26*..

1
44,349
1,343 94,367
5,945 133,379
7,938 209,335
10,169 220,375
10,875 252,223
9,865 263,367
4,807 267,506
2,950 246,410
3,117 264,027
2,220 243,000
2,830 242,590
3,180 240,570
2,650 247,590
3,530 257,640
3,114 278,692
3,790 245,600
4,010 242,810
2,430 256,930
4,120 250,200
3,660 247,630

50,746
116,284
199,509
461,194
516,564
598,808
683,799
744,107
733,690
747,551
738,060
741,630
743,970
747,250
757,450
775,794
756,630
757,540
767,260
765,550
767,070

21,714
38,057
117,642
313,334
346,930
414,696
494,947
549,183
527,030
535,493
525,250
525,780
524,270
526,420
532,660
546,172
527,820
528,560
534,530
530,170
531,990

21,808 7,225 26,551
69,221 9,006 37,502
61,003 20,864 52,150
61,742 86,118 93,643
64,930 104,704 99,832
67,028 117,084113,128
58,277 130,574 118,276
54,451 140,473 128,042
65,000 141,660114,400
68,191 143,868128,716
69,400 143,410106,840
72,020 143,830104,750
75,360 144,340106,220
75,940 144,890110,670
79,400 145,390123,150
84,119 145,503 133,614
84,770 144,040112,720
85,420 143,560111,470
89,260 143,470120,870
90,180 145,200 113,210
90,470 144,610111,740

79,104
155,377
257,552
576,242
640,255
739,033
835,224
919,552
901,280
930,719
899,590
900,870
906,410
915,890
939,310
964,918
927,140
928,540
934,440
926,370
928,140

71,283
144,103
229,843
480,940
537,946
616,037
681,847
747,903
725,590
754,324
723,730
724,650
726,840
736,870
753,000
786,252
743,140
741,230
766,680
753,150
755,000

10,982
12,792 240
17,079 1,799
30,608 1,975
32,205 2,908
33,854 4,194
36,839 6,773
43,483 11,496
32,510 11,200
42,582 11,209
33,180 10,830
31,540 10,570
31,330 10,990
31,900 11,210
34,560 11,160
41,811 12,020
32,110 11,540
31,560 11,370
37,510 11,860
32,280 10,990
33,620 10,530

43,521
97,846
165,619
365,940
405,087
465,788
528,124
568,532
551,264
562,667
552,727
554,007
555,096
556,383
564,023
578,560
563,387
562,940
569,913
567,384
567,221

18,021
32,628
99,933
253,936
277,717
329,548
391,032
429,537
405,803
412,939
403,137
402,281
400,695
401,492
405,805
416,366
402,020
401,731
406,148
402,147
402,436

19,539 5,961 23,113
57,914 7,304 32,845
49,106 16,579 45,756
45,399 66,604 81,500
47,633 79,738 86,189
48,715 87,524 96,566
41,494 95,598 100,098
38,921 100,073 106,995
46,918 98,543 96,455
49,610 100,118107,152
49,938 99,652 89,743
51,899 99,827 87,208
54,355 100,046 88,004
54,546 100,345 91,397
57,471 100,747 102,103
61,519 100,675 108,489
61,704 99,663 93,808
61,869 99,340 91,914
64,636 99,129 100,455
64,892 100,345 93,743
65,058 99,727 92,340

68,121
132,060
216,577
465,644
511,353
585,125
655,898
715,615
691,485
716,364
687,844
686,266
689,717
695,312
714,112
733,635
705,093
704,357
710,228
702,130
702,515

61,717
122,528
193,029
384,596
425,380
482,124
526,837
575,563
549,996
573,382
546,420
545,021
546,360
552,649
564,835
590,776
556,274
552,942
573,878
561,110
561,386

10,385 140
50
12,353
16,437 1,639
29,142 1,733
30,612 2,549
31,958 3,561
34,782 5,843
41,062 10,052
30,191 9,751
39,847 9,576
30,980 9,198
29,335 8,932
29,150 9,360
29,568 9,578
32,064 9,527
38,569 10,015
29,712 9,529
29,145 9,357
34,934 9,848
29,923 8,978
30,676 8,517

1,709
1,176
5,287
6,460
8,427
9,024
8,273
3,183
2,178
2,166
1,539
2,099
2,343
1,952
2,708
2,255
2,908
2,977
1,769
3,281
2,702

15,952
35,360
71,641
231,084
272,289
314,891
365,002
420,611
432,520
433,389
434,500
437,120
440,770
443,520
446,110
450,615
450,100
451,480
457,950
455,560
459,560

23
65
163
19,375
25,912
38,083
58,994
58,369
61,700
62,420
61,870
59,920
61,030
60,640
66,780
60,224
67,250
68,490
63,420
68,480
66,170

7,173
10,059
20,986
42,958
47,211
52,658
58,128
63,650
65,080
66,557
66,080
66,620
66,980
67,550
68,000
69,125
68,870
69,110
70,070
70,610
71,400

14,278
14,181
13,472
13,686
13,783
13,927
14,171
14,465
14,558
14,573
14,583
14,595
14,612
14,628
14,624
14,633
14,611
14,624
14,628
14,632
14,632

37,136
80,609
112,393
168,032
174,385
197,817
202,564
204,203
187,439
201,197
184,225
183,283
181,340
186,851
194,492
210,824
185,773
183,458
194,932
189,361
187,097

12,347
28,340
57,273
179,229
209,406
239,763
275,374
317,064
320,437
320,596
320,478
321,372
324,167
324,700
326,044
329,113
328,352
328,005
332,395
329,567
332,394

4
54
130
18,578
25,046
36,357
55,611
52,850
56,140
56,334
56,084
54,175
54,929
54,250
60,162
53,646
61,022
62,051
57,470
62,002
59,591

5,886
8,464
17,398
34,100
37,279
41,228
44,741
48,240
49,188
50,257
49,900
50,281
50,543
50,963
51,199
52,078
52,167
52,300
53,191
53,753
54,450

6,619
6,923
6,174
5,767
5,727
5,704
5,735
5,780
5,790
5,794
5,796
5,792
5,792
5,796
5,791
5,788
5,765
5,768
5,778
5,775
5,775

Call date series
Insured banks:
Total:
1941—Dec. 31...
1947—Dec. 31...
1960—Dec. 31...
1970—Dec. 319..
1972—Dec. 31...
1973—Dec. 31...
1974—Dec. 31...
1975—June 30...
Dec. 31...
National member:
1941—Dec. 31...
1947—Dec. 31...
1960—Dec. 31...
1970—Dec. 319..
1972—Dec. 31...
1973—Dec. 31...
1974—Dec. 31...
1975—June 30...
Dec. 31...

49,290
114,274
198,011
458,919
594,502
678,113
734,516
736,164
762,400

21,259
37,583
117,092
312,006
411,525
490,527
541,111
526,272
535,170

21,046 6,984 25,788 76,820) 69,411
67,941 8,750 36,926; 152,733 141,851
60,468 20,451 51,836i 255,669' 228,401
61,438 85,475 92,708 572,6821 479,174
66,679 116,298 111,333 732,519' 612,822
57,961 129,625 116,266i 827,081 677,358
54,132 139,272 125,375 906,325 741,665
67,833 142,060 125,181 914,781 746,348
83,629 143,602 128,256■944,654• 775,209

I
1
10,654
54
12,615
16,921 1,667
30,233 1,874
33,366 4,113
36,248 6,429
42,587 10,693
41,244 10,252
40,259 10,733

1,762
1,325
5,932
7,898
10,820
9,856
4,799
3,106
3,108

41,298
92,975
132,533
208,037
250,693
261,530
265,444
261,903
276,384

15,699
34,882
71,348
231,132
313,830
363,294
418,142
416,962
433,352

10
61
149
19,149
37,556
57,531
55,988
59,310
56,775

6,844
9,734
20,628
42,427
52,166
57,603
63,039
65,986
68,474

13,426
13,398
13,119
13,502
13,721
13,964
14,216
14,320
14,372

27,571
65,280
107,546
271,760
350,743
398,236
428,433
428,167
441,135

11,725
21,428
63,694
187,554
247,041
293,555
321,466
312,229
315,738

12,039
38,674
32,712
34,203
37,185
30,962
29,075
37,606
46,799

6,786
35
8,375
9,829 611
18,051 982
19,096 2,155
20,357 3,876
23,497 6,750
21,096 6,804
22,305 7,302

1,088
795
3,265
4,740
6,646
5,955
2,437
1,723
1,788

23,262
53,541
71,660
122,298
146,800
152,705
154,397
152,576
159,840

8,322
19,278
39,546
137,592
184,622
212,874
243,959
242,492
250,493

4
45
111
13,100
26,706
39,696
39,603
41,954
40,875

3,640
5,409
11,098
24,868
30,342
33,125
35,815
37,483
38,969

5,117
5,005
4,530
4,620
4,612
4,659
4,706
4,730
4,741

For notes see opposite page.




3,806
5,178
11,140
50,004
66,516
73,718
77,892
78,331
78,598

14,977
22,024
28,675
56,028
67,390
70,711
76,523
75,686
78,026

43,433 39,458
88,182: 82,023
139,261 124,911
340,764 283,663
434,810I 359,319
489,470i 395,767
534,207 431,039
536,836i 431,646
553,285 447,590

JUNE 1976 □ COMMERCIAL BANKS

A15

P R IN C IP A L A S S E T S A N D L IA B IL IT IE S A N D N U M B E R , BY C L A S S OF B A N K — C o n t in u e d

(Amounts in millions of dollars)
Loans and investments
Classification by
FRS membership
and FDIC
insurance

Total

Deposits
Total
assets—
Interbank3
Total
Securities
Other
Cash
lia­
assets 3 bilities
and Total 3
Demand
Loans U.S.
l
capital
De­
Treas­ Other
2
ury
ac­
mand Time
counts4
U.S. Other
Govt.

Time
5

Total Num­
Bor­ capital ber
row­ ac­
of
ings counts6 banks

Call date series
Insured banks (cont.):
State member:
1941—Dec. 31.... 15,950 6,295
1947—Dec. 31.... 32,566 11,200
I960—Dec. 31.... 58,073 36,240
1970—Dec. 319... 94,760 66,963
1972—Dec. 31.... 115,426 82,889
1973—Dec. 31.... 130,240 97,828
1974—Dec. 31.... 140,373 108,346
1975—June 30. . . 134,759 100,968
1975—Dec. 31 . .. 137,620 100,823
Nonmember:
1941—Dec. 31.... 5,776 3,241
1947—Dec. 31.... 16,444 4,958
1960—Dec. 31.... 32,411 17,169
1970—Dec. 319... 92,399 57,489
1972—Dec. 31.... 128,333 81,594
1973—Dec. 31.... 149,638 99,143
1974—Dec. 31.... 165,709 111,300
1975—June 30. . . 173,238 113,074
1975-^Dec. 31. .. 183,645 118,609
Noninsured
nonmember:
1941—Dec. 31.... 1,457
455
474
1947—Dec. 318... 2,009
550
1960—Dec. 31.... 1,498
1970—Dec. 319... 3,079 2,132
1971—Dec. 31.... 3,147 2,224
1972—Dec. 31.... 4,865 3,731
1973—Dec. 31.... 6,192 4,927
1974—Dec. 31.... 9,981 8,461
1975—June 30. . . 11,725 9,559
1975—Dec. 31 .. . 13,674 11,283
Total nonmember:
1941—Dec. 31.... 7,233 3,696
1947—Dec. 31.... 18,454 5,432
1960—Dec. 31... 33,910 17,719
1970—Dec. 319... 95,478 59,621
1971—Dec. 31.... 111,674 69,411
1972—Dec. 31.... 133,198 85,325
1973—Dec. 31.... 155,830 104,070
1974—Dec. 31.... 175,690 119,761
1975—June 30. . . 184,963 122,633
1975—Dec. 31 .. . 197,319 129,892

7,500
19,240
16,394
11,196
11,530
10,532
9,846
12,004
14,720

2,155
2,125
5,439
16,600
21,008
21,880
22,181
21,787
22,077

8,145 24,688 22,259
10,822 43,879 40,505
17,081 77,316 68,118
25,472 125,460 101,512
29,176 150,697 123,186
29,387 166,780 131,421
30,473 181,683 144,799
31,466 179,787 141,995
30,451 180,495 143,409

1,509
10.039
11,368
16.039
17,964
16,467
15,211
18,223
22,109

1,025
1,448
3,874
18,871
28,774
34,027
39,199
41,942
42,927

2,668 8,708 7,702
129
4,083 20,691 19,342
262
6,082 39,114 35,391
484
11,208 106,457 93,998 1,091
14,767 147,013 130,316 1,408
16,167 170,831 150,170 1,467
18,380 190,435 165,827 1,525
18,029 198,157 172,707 1,397
19,778 210,874 184,210 1,689

241
761
1,280
255
413
535
304
642
684
239
349
785
949
316
319 1,201
358 1,808
490 1,902
2,270
11,318
11,904
16,342
17,297
18,313
16,783
15,530
18,581
22,599

1,266
1,703
4,287
19,514
24,966
29,559
34,976
40,400
43,750
44,829

763
576
314
934
1,551
1,794
2,010
2,667
3,534
5,359

2,283
2,643
1,883
4,365
5,130
7,073
8,650
13,616
16,277
20,544

621
381
2,022
1,720
2,378
2,318
746
443
467

13,874
27,068
40.733
45.734
51,017
49,859
49,807
48,621
50,984

1
4,025
9,062
9
17,727
20
42,218 5,478
55,523 9,651
62,851 15,914
73,380 13,247
65,654 14,380
67,656 12,771

2,246
3,055
6,299
9,232
10,886
11,617
12,425
12,773
13,105

1,502
1,918
1,644
1,147
1,092
1,076
1,074
1,064
1,046

53 4,162 3,360
4
149 12,366 6,558
27
645 20,140 14,095
141 1,438 40,005 51,322
552 1,796 52,876 73,685
586 1,582 58,966 87,569
642 1,616 61,240 100,804
676
940 60,706 108,816
853 65,560 115,203
719

6
7
19
571
1,199
1,920
3,138
2,976
3,128

959
1,271
3,232
8,326
10,938
12,862
14,799
15,730
16,400

6,810
6,478
6,948
7,735
8,017
8,229
8,436
8,526
8,585

253
478
293
756
1,134
1,620
2,215
2,857
3,320
5,115

13
4
14
226
283
527
1,463
2,382
3,110
3,449

329
325
358
532
480
491
524
611
570
651

852
783
352
184
181
206
207
249
253
261

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
1,592 60,802 89,784
1,624 63,302 103,661
951 62,830 112,136
859 67,868 120,318

18
12
33
796
866
1,726
3,383
5,520
6,086
6,577

1,288
1,596
3,590
8,858
9,932
11,429
13,386
15,410
16,300
17,051

7,662
7,261
7,300
7,919
8,056
8,223
8,436
8,685
8,779
8,846

1,872
529
2,251
177
185
1,443
159
132
2,570
101
375
380
2,923
116
488
81
3,775
591
4,996
344
6,627
897
803
8,314 1,338
957
11,323 1,552 1,291

I157
3,431 10,992 9,573
4,659 23,334 21,591
439
190
6,396 40,997 36,834
643
160
12,143 110,822 96,568 1,466
243
112,764
13,643 129,100
1,592
359
16,562 154,085 134,091 1,895
633
930
18,177 179,480 155,165 2,057
21,047 204,051 172,454 2,422 1,445
21,563 214,434 181,021 2,735 1,633
25,137 231,418 195,533 3,241 2,010

1Loans to farmers directly guaranteed by CCC were reclassified as
securities and Export-Import Bank portfolio fund participations were
reclassified from loans to securities effective June 30, 1966. This reduced
“Total loans” and increased “Other securities” by about $1 billion.
“Total loans” include Federal funds sold, and beginning with June 1967
securities purchased under resale agreements, figures for which are in­
cluded in “Federal funds sold, etc.,” on p. A-16.
Effective June 30, 1971, Farmers Home Administration notes were
classified as “Other securities” rather than “Loans.” As a result of this
change, approximately $300 million was transferred to “Other securities”
for the period ending June 30, 1971, for all commercial banks.
Effective Mar. 31, 1976, includes “reserves for loan losses” and “un­
earned income on loans.”
See also table (and notes) at the bottom of p. A-24.
2 See first 2 paragraphs of note 1.
3Reciprocal balances excluded beginning with 1942.
4 Includes items not shown separately. See also note 1.
Effective Mar. 31, 1976, “reserves for loan losses” and unearned income
on loans,” which for all commercial banks are estimated to be approx­
imately $14.5 billion, have been netted against “other assets” and “other
liabilities” and, therefore, against “total assets/liabilities.”
5See third paragraph of note 1 above.
6 Effective Mar. 31, 1976, includes “reserves for securities” and a
portion of “reserves for loan losses.”
7 For the last-Wednesday-of-the-month series, figures for call dates
are shown for June and December as soon as they became available.
8Beginning with Dec. 31, 1947, the series was revised; for description,
see note 4, p. 587, May 1964 Bulletin.
9 Figure takes into account the following changes, which became
effective June 30, 1969: (1) inclusion of consolidated reports (including



3,'739
3,978
15
6,608 1,028
11,091
750
12,862 1,406
14,425 1,968
17,565 3,301
18,751 2,771
16,265 2,712

l,: 191
18 1,392

13
40
19
55
9
8
11
6

846
1,298
1,273
1,530
1,836
2,062
2,124
2,308

figures for all bank-premises subsidiaries and other significant majorityowned domestic subsidiaries) and (2) reporting of figures for total loans
and for individual categories of securities on a gross basis—that is, before
deduction of valuation reserves—rather than net as previously reported.
10 See last paragraph of note 1, second paragraph of note 4, and
note 6.
Note.—Data are for all commercial banks in the United States (including
Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both member and nonmember; stock savings
banks; nondeposit trust companies; and U.S. branches of foreign banks.
Figures for member banks before 1970 include mutual savings banks
as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks
are not included in insured commercial banks.
Effective June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business; beginning 1973,
exclude 1 national bank in Puerto Rico.
Beginning Dec. 31, 1973, June 30, 1974, and Dec. 31, 1974, June 30,
1975, respectively, member banks exclude and noninsured nonmember
banks include 1, 2, 3, and 4 noninsured trust companies that are member
of the Federal Reserve System.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and by mergers
etc.
Figures are partly estimated except on call dates.
For revisions in series before June 30, 1947, see July 1947 Bulletin,
pp. 870-71.

A16

COMMERCIAL BANKS □ JUNE 1976
A S S E T S BY C L A S S OF B A N K , D E C E M B E R 31, 1975

(Assets and liabilities are shown in millions of dollars.)
Member banks1
Account

Cash, bank balances, items in process......................
Currency and coin.............................................
Demand balances with banks in United States......
Other balances with banks in United States..........
Balances with banks in foreign countries..............
Cash items in process of collection......................
Total securities held—Book value...........................
U.S. Treasury...................................................
Other U.S. Govt, agencies...................................
States and political subdivisions...........................
All other securities.............................................
Trading-account securities..................................
Other U.S. Govt, agencies...............................
States and political subdivisions........................
All other.......................................................
Bank investment portfolios.................................
U.S. Treasury................................................
Other U.S. Govt, agencies...............................
States and political subdivisions.......................
All other.......................................................
Federal funds sold and securities purchased under
agreements to resell........................................
Commercial banks.............................................
Brokers and dealers...........................................
Others..............................................................
Other loans..........................................................
Real estate loans................................................
Secured by farmland.......................................
Secured by residential properties......................
1- to 4-family residences..............................
VA guaranteed....... ................................
Other.....................................................
Multifamily properties.................................
FHA insured...........................................
Other.....................................................
Secured by other properties.............................
Loans to domestic and foreign banks...................
Loans to other financial institutions.....................
Loans on securities to brokers and dealers............
Other loans for purch./carry securities..................
Loans to farmers...............................................
Commercial and industrial loans..........................
Loans to individuals...........................................
Instalment loans.............................................
Passenger automobilies................................
Residential-repair/modernize........................
Credit cards and related plans......................
Charge-account credit cards......................
Check and revolving credit plans................
Other retail consumer goods.........................
Mobile homes.........................................
Other.....................................................
Other instalment loans.................................
Single-payment loans to individuals..................
All other loans..................................................
Total loans and securities......................................
Fixed assets—Buildings, furniture, real estate...........
Investments in subsidiaries not consolidated.............
Customer acceptances outstanding..........................
Other assets.........................................................
Total assets..........................................................
Number of banks..................................................

Insured
All
commercial commercial
banks
banks

Total

New
York
City

City of
Chicago

Other
large

All other

Non­
member
banks1

133,614
12,256
26,776
34,866
8,866
3,598
47,251
229,622
84,119
34,409
102,029
9,065
5,338
2,982
711
1,142
502
224,284
81,137
33,698
100,887
8,563

128,256
12,248
26,776
32,091
7,367
2,605
47,169
227,230
83,629
33,941
101,757
7,903
5,332
2,976
711
1,142
502
221,898
80,653
33,230
100,614
7,401

108,477
9,243
26,776
19,389
5,184
2,356
45,530
162,194
61,519
21,186
74,079
5,410
5,182
2,858
698
1,130
495
157,012
58,661
20,488
72,949
4,914

24,778
774
3,349
6,496
151
588
13,421
18,499
9,005
1,508
7,204
783
1,902
1,072
247
357
227
16.597
7,933
1,262
6,847
556

3,888
200
1,433
195
29
27
2,003
7,134
3,212
485
3,162
275
563
364
51
102
47
6.570
2,848
434
3,060
229

43,730
3,081
12,283
3,752
1,995
1,044
21,575
53,616
21,411
6,031
24,679
1,496
2,484
1,315
351
602
216
51,132
20,096
5,680
24,077
1,280

36,081
5,188
9,712
8,947
3,008
696
8,531
82,945
27,892
13,162
39,035
2,855
232
107
50
70
5
82,712
27,785
13,112
38,965
2,850

25,137
3,013
15,477
3,683
1,242
1,721
67,428
22,600
13,223
27,950
3,655
156
124
13
12
7
67,272
22,476
13,209
27,938
3,649

39,250
34,099
3,700
1,452
507,202
134,770
6,237
82,307
76,456
5,510
3,081
67,865
5,850
493
5,358
46,226
12,624
29,611
7,175
3,916
20,158
178,959
106,741
83,594
33,790
5,859
12,312
9,501
2,811
15,318
8,721
6,597
16,315
23,147
13,248
776,074
17,474
2,015
8,952
27,069
965,198
14,633

37,323
32,172
3,700
1,452
497,846
134,588
6,224
82,177
76,331
5,493
3,058
67,780
5,846
492
5,354
46,187
9,553
29,276
7,055
3,822
20,129
174,316
106,019
82,969
33,279
5,845
12,311
9,500
2,810
15,283
8,719
6,564
16,251
23,050
13,087
762,400
17,390
1,993
8,679
25,937
944,654
14,372

29,122
24,075
3,646
1,400
387,439
96,018
2,702
59,791
55,190
4,786
2,610
47,793
4,601
449
4,153
33,525
8,686
28,088
6,964
3,193
11,244
145,930
75,536
58,830
21,963
4,189
10,846
8,506
2,340
10,615
6,276
4,338
11,217
16,706
11,781
578,755
13,061
1,970
8,424
23,093
733,780
5,787

2,488
2,080
62
346
73,495
8,448
8
4,138
3,259
238
174
2,847
879
91
787
4,302
3,366
10,187
4,477
415
94
38,553
4,854
3,153
432
222
1,107
815
293
164
97
67
1,228
1,701
3,100
94,483
1,415
835
4,319
6,586
132,416
12

1,520
998
468
54
22,261
1,371
11
917
840
47
20
773
77
24
53
443
584
4,442
911
289
162
12,002
1,717
925
163
36
509
478
31
108
39
69
109
792
784
30,915
539
146
249
1,287
37,024
9

14,562
11,094
2,614
854
143,701
35,198
302
22,650
20,588
2,619
1,353
16,616
2,062
158
1,904
12,245
3,905
11,199
1,400
1,560
2,564
55,749
26,871
21,178
6,600
1,731
6,048
4,817
1,231
3,749
2,221
1,527
3,049
5,694
5,255
211,880
5,232
958
3,538
11,117
276,454
155

10,551
9,903
501
146
147,982
51,002
2,381
32,087
30,503
1,882
1,063
27,557
1,584
175
1,409
16,534
831
2,259
176
929
8,424
39,626
42,093
33,574
14,769
2,199
3,181
2,395
785
6,594
3,919
2,675
6,831
8,520
2,643
241,478
5,875
31
318
4,103
287,886
5,611

10,129
10,023
53
52
119,763
38,752
3,534
22,516
21,267
724
471
20,071
1,249
44
1,205
12,702
3,938
1,523
210
723
8,914
33,029
31,205
24,765
11,827
1,670
1,466
995
471
4,704
2,445
2,259
5,098
6,441
1,466
197,319
4,413
45
527
3,976
231,418
8,846

1Member banks exclude and nonmember banks include 4 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 See table (and notes), Deposits Accumulated for Payment of Personal
Loans, p. 24.
3 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.




Large banks

Note.—Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic
subsidiaries. Figures for total loans and for individual categories of
securities are reported on a gross basis—that is, before deduction of
valuation reserves.
Back data in lesser detail were shown in previous Bulletins. Beginning
with the fall Call Report, data for future spring and fall Call Reports will
be available from the Data Production Section of the Division of Data
Processing.
Details may not add to totals because of rounding.

JUNE 1976 □ COMMERCIAL BANKS

A17

LIA B IL IT IE S A N D C A PITA L BY C L A S S OF B A N K , D E C E M B E R 31, 1975

(Assets and liabilities are shown in millions of dollars.)
Mtember bank:si
Account

Demand deposits..................................................
Mutual savings banks.........................................
Other individuals, partnerships, and corporations..
U.S. Government..............................................
States and political subdivisions...........................
Foreign governments, central banks, etc................
Commercial banks in United States.....................
Banks in foreign countries..................................
Certified and officers’ checks, etc..........................
Time and savings deposits......................................
Savings deposits................................................
Accumulated for personal loan payments2............
Mutual savings banks........................................
Other individuals, partnerships, and corporations..
U.S. Government..............................................
States and political subdivisions...........................
Foreign governments, central banks, etc................
Commercial banks in United States.....................
Banks in foreign countries..................................
Total deposits......................................................
Federal funds purchased and securities sold under
agreements to repurchase...................................
Other liabilities for borrowed money.......................
Mortgage indebtedness..........................................
Bank acceptances outstanding................................
Other liabilities.....................................................
Total liabilities.....................................................
Minority interest in consolidated subsidiaries...........
Total reserves on loans/securities............................
Reserves for bad debts (IRS)..............................
Other reserves on loans......................................
Reserves on securities........................................
Total capital accounts...........................................
Capital notes and debentures..............................
Equity capital...................................................
Preferred stock..............................................
Common stock..............................................
Surplus.........................................................
Undivided profits...........................................
Other capital reserves......................................
Total liabilities, reserves, minority interest, capital
accounts...........................................................
Demand deposits adjusted3.......... ........................
Average total deposits (past 15 days).......................
Average total loans (past 15 days)...........................
Selected ratios:
Percentage of total assets
Cash and balances with other banks.....................
Total securities held...........................................
Trading account securities................................
U.S. Treasury.............................................
States and political subdivisions....................
All other trading account securities................
Bank investment portfolios..............................
U.S. Treasury.............................................
States and political subdivisions....................
All other portfolio securities.........................
Other loans and Federal funds sold................... .'
All other assets.................................................
Total loans and securities...................................
Reserves for loans and securities..........................
Equity capital—Total.........................................
Total capital accounts........................................
Number of banks.................................................
For notes see opposite page.




Insured
All
commercial commercial
banks
banks

Large banks
Total

New
York
City

City of
Chicago

Other
large

All other

Non­
member
banks1

323,617
1,325
246,559
3,114
18,726
1,859
33,768
6,719
11,548
462,915
160,087
280
517
229,414
573
48,113
12,424
9,550
1,957
786,532

319,751
1,160
245,471
3,108
18,595
1,659
33,453
5,646
10,659
455,458
159,725
280
499
224,878
573
47,896
11,373
9,038
1,196
775,209

251,649
1,063
187,632
2,255
13,058
1,610
32,048
5,459
8,523
339,350
114,228
223
490
168,882
462
34,355
11,187
8,379
1,145
590,999

54,236
494
30,546
139
779
1,318
14,436
3,906
2,618
45,551
7,061
i95
25,975
75
1,114
7,216
2,997
918
99,788

10,378
1
7,754
34
191
18
1,868
213
299
16,302
2,402
5
10,467
1
1,055
1,212
1,079
80
26,680

91,528
221
70,913
809
3,867
261
11,442
1,212
2,804
124,194
40,647
76
239
61,277
183
15,307
2,719
3,612
135
215,722

95,507
347
78,419
1,274
8,221
13
4,302
129
2,802
153,303
64,118
146
52
71,163
203
16,879
39
691
12
248,810

71,968
262
58,927
859
5,667
248
1,720
1,259
3,025
123,565
45,860
58
26
60,531
111
13,758
1,238
1,171
812
195,534

53,811
6,412
765
9,548
29,964
887,033
5
9,035
8,696
150
189
69,125
4,479
64,646
53
15,601
26,775
21,340
876

52,126
4,649
763
9,267
25,190
867,204
4
8,972
8,641
145
187
68,474
4,379
64,095
48
15,495
26,617
21,143
792

49,305
4,342
548
9,012
20,206
674,411
1
7,293
7,078
92
123
52,074
3,494
48,580
28
11,498
19,975
16,562
516

9,043
2,114
54
4,884
4,605
120,489

6,367
25
16
252
888
34,228

26,601
1,828
300
3,555
7,715
255,721

1,629
1,627
1
1
10,298
779
9,519
2,275
3,848
3,396

482
482
2,314
80
2,235
568
1,145
472
49

2,777
2,672
43
62
17,956
1,681
16,275
10
3,755
7,079
5,310
121

7,294
374
178
321
6,997
263,974
1
2,405
2,297
49
60
21,506
954
20,551
18
4,900
7,902
7,385
346

4,506
2,071
217
536
9,758
212,622
4
1,742
1,619
57
66
17,051
985
16,066
25
4,103
6,800
4,777
360

965,198
239,484
762,528
514,414

944,654
236,021
753,182
505,174

733,780
171,816
572,278
388,589

132,416
26,241
95,301
74,436

37,024
6,473
25,851
21,931

276,454
57,702
207,553
143,973

287,886
81,401
243,574
148,249

231,418
67,668
190,250
125,826

13.8
23.8
.6
.3
.1
.1

13.6
24.1
.6
.3
.1
.1

10.5
19.3
1.5
1.0
.3
.3
17.7
7.7
8.3
1.8
64.2
6.0
83.5
1.3
6.0
6.3
9

15.8
19.4
.9
.5
.2
.2
18.5
7.3
8.7
2.5
57.2
7.5
76.6
1.0
5.9
6.5
155

10.9
29.1
.1
.1

23.5
8.5
10.7
4.3
56.7
5.7
80.7
.9
6.8
7.2
14,372

18.7
14.0
1.4
.8
.3
.4
12.5
6.0
5.2
1.4
57.4
9.9
71.4
1.2
7.2
7.8
12

12.5
28.8
.9

23.2
8.4
10.5
4.4
56.6
5.8
80.4
.9
6.7
7.2
14,633

14.8
22.1
.7
.4
.2
.2
21.4
8.0
9.9
3.5
56.8
6.3
78.9
1.0
6.6
7.1
5,787

28.7
9.7
13.5
5.5
55.1
3.6
83.9
.8
7.1
7.5
5,611

29.1
9.7
12.1
7.3
56.1
3.9
85.3
.8
6.9
7.4
8,846

A18

WEEKLY REPORTING BANKS a JUNE 1976
A S S E T S A N D L IA B IL ITIE S OF LARGE C O M M E R C IA L B A N K S A
(In millions o f dollars)
Loans

Federal funds sold, etc. 2

Wednesday

Total
loans
and
invest­
ments 1

Other

To brokers
and dealers
involving—

Total

For purchasing
or carrying securities

To nonbank
financial
institutions

To brokers
To
To
Com­
and dealers
others
To
com­
mer­ Agri­
mer­ US. Other others Total1 cial
cul­
cial Treas­ se­
and tural
Pers.
U.S.
banks ury curi­
indus­
U.S.
and
se­
ties
trial
Treas­ Other Treas­ Other sales Other
curi­
ury secs. ury secs. finance
ties1
secs.
secs.
cos.,
etc.

Large banks—
Total

1975
May 7.............
14.............
21.............
28.............
1976
Apr. 7.............
14.............
21.............
28.............
May 5.............
12.............
19.............
26.............

631 279,982 125,284
722 278,348 124,535
574 277,881 123,737
612 277,025 122,824

387,217
385.495
384.495
384,955

17,321
17,171
16,230
17,618

14,191
14,052
13,073
14,010

1,631
1,555
1,755
2,276

868
842
828
720

3,470 1,066 2,665
3,475 949 2,664
3,461 894 2,943
3,478 735 3,196

2,343
2.340
2,352
2.340

9,361
9,095
9,110
9,274

20,229
20,156
20,147
20,193

394,198
390,499
388,269
385,436
387,336
385,628
386,028
384,378

24,437
20,535
17,494
17,987
18,806
18,311
17,145
16,830

17,878
16,032
14,182
15,192
15,881
15,343
13,914
13,743

4,792
2,869
1,729
1,331
1,643
1,762
1,938
1,797

681 1,086 266,967 112,726 3,710 1,373 5,173
694 940 267,020 112,411 3,742 1,268 5,353
683 900 267,191 112,628 3,754 904 5,669
573 891 266,373 112,475 3,770 776 5,454
637 645 267,399 113,047 3,790 1,008 5,341
600 606 266,362 112,443 3,808 782 5,320
583 710 267,175 112,243 3,829 900 5,858
580 710 266,829 112,228 3,837 886 5,787

2.384
2,391
2,371
2,381
2,367
2.384
2,470
2,428

8,350
8,021
7,976
7,835
7,882
7,654
7,880
7,646

18.041
18.074
18,098
18,138
18.074
18.042
18,030
17,947

90,254
89,771
90,180
89,038

1,709
1,662
1,942
1,053

1,550
1,500
1,799
857

7,898
7,886
7,870
7,936

New York City

1975
May 7.............
14.............
21.............
28.............
1976
Apr. 7.............
14.............
21.............
28.............
May 5.............
12.............
19.............
26.............

945
89,028 1,981
2 ,4 5 3
1,786
88,655
89,467 2,905 1,863
87,232 1,924 1,297
874
87,342 1,328
87,452 2,023 1,526
89,102 2,580 1,902
88,144 2,572 2,045

754
108
427
132
230
276
339
199

49

63
144
119
172

72,939
72,105
72,005
71,823

39,505
39,163
38,823
38,537

282
559
566
495
220
217
339
328

68,254
68,1 7 3
67,967
66,921
67,289
66,537
66,871
66,648

34,609
34,392
34,263
34,146
34,199
33,717
33,475
33,604

122
120
114
113

886
809
813
588

1,883
1,815
2,066
2,262

455
450
467
459

3,231
3,123
3,120
3,263

1,138
1,053
777
657
864
661
815
749

3,329
3,409
3,734
3,549
3,353
3,402
3,850
3,818

396
396
385
386
388
389
389
384

2,829
835
2,693
833
2,671
884
2,640
904
2,668 6,911
2,562 6,916
2,647 6,845
2,514 6,832

Outside
New York City

1975
May 7.............
14.............
21.............
28.............
1976
Apr. 7.............
14.............
21.............
28.............
May 5...........
12...........
19...........
26...........

296,963
295,724
294,315
295,917

15,612
15,509
14,288
16,565

12,641
12,552
11,274
13,153

1,535
1,537
1,731
2,252

868
842
828
720

568 207,043
578 206,243
455 205,876
440 205,202

85,779
85,372
84,914
84,287

3,348
3,355
3,347
3,365

180
140
81
147

782
849
877
934

305,170
301,844
298,802
298,204
299,994
298,176
296,926
296,234

22,456
18,082
14,589
16,063
17,478
16,288
14,565
14,258

16,933
14,246
12,319
13,895
15,007
13,817
12,012
11,698

4,038
2,761
1,302
1,199
1,413
1,486
1,599
1,598

681
694
634
573
633
596
583
580

804 198,713
381 198,847
334 199,224
396 199,452
425 200,110
389 199,825
371 200,304
382 200,181

78,117
78,019
78,365
78,329
78,848
78,726
78,768
78,624

3,629
3,661
3,676
3,692
3,713
3,730
3,751
3,758

235
215
127
119
144
121
85
137

1,844
1,944
1,935
1,905
1,988
1,918
2,008
1,969

A Effective with changes in New York State branch banking laws,
beginning Jan. 1,1976, three large New York City banks are now reporting
combined totals for previously affiliated banks that have been converted
to branches.
The principal effects of these changes were to increase the reported data
for New York City (total assets, by about $5.5 billion) and to decrease the




6,130 12,331
1,890 5,972 12,270
1,885 5,990 12,277
1,881 6,011 12,257
1,988
1.995
1,986
1.995
1,979
1.995
2,081
2,044

5,521
5,328
5,305
5,195
5,214
5,092
5,233
5,132

11,206
11,241
11,214
11,234
11,163
11,126
11,185
11,115

reported data for “Outside New York City” (total assets, by about $4.0
billion).
Historical data (from Jan. 1972) on a basis comparable with 1976 data
are available from the Public Information Department of the Federal
Reserve Bank of New York on request.
For other notes see p. A-22.

JUNE 1976 a WEEKLY REPORTING BANKS

A19

A S S E T S A N D L IA B IL ITIE S O F LARGE C O M M E R C IA L B A N K S A — C o n t in u e d

(In millions of dollars)
Investments

Loans (cont.)

Other securities

U.S. Treasury securities

Other (cont.)

Notes and bonds
maturing—

To commer­
cial banks
Con­
sumer
instal­
Do­ For­ ment
mes­ eign
tic

Loan
loss
For­
reserve
All and un­
eign
gOVtS.3 other earned Total
income
on
loans1

Bills

Total
Within 1 to After
1 yr. 5 yrs. 5 yrs.

Obligations
of States
and
political
subdivisions

Other bonds,
corp. stocks,
and
securities

Wednesday

Tax
Certif.
of
war­ All
rants4 other partici­ All
pation5 other6
Large banksTotal

1975
2,615
2,459
2,392
2,200

5,387
5,271
5,289
5,377

34,105
34,147
34,124
34,142

1,435
1,229
1,328
1,348

18,116
18,131
18,176
17,948

5,736
5,735
5,724
5,741

29,426 5,962 4,064 15,932
29,623 6,061 4,203 15,920
29,906 5,900 4,241 16,135
30,347 5,778 4,326 16,647

1,998
2,009
1,958
1,867
1,990
1,982
2,034
2,028

5,074
5,185
5,020
4,948
5,045
5,269
5,238
5,241

35,582
35,725
35,767
35,891
35,937
36,013
36,097
36,204

1,765
1,801
1,864
1,893
1,874
1,895
1,745
1,807

18,152
18,359
18,414
18,246
18,357
17,997
17,918
17,795

8,211
8,276
8,259
8,305
8,286
8,351
8,412
8,425

43,967
44,039
43,651
41,406
42,052
42,087
42,140
41,454

3,468
3,439
3,630
3,596

60,488
60,353
60,478
59,965

6,170
5,970
6,101
5,981

39,780
39,526
39,708
39,662

2,381
2,414
2,431
2,396

12,157
12,443
12,238
11,926

2,480
2,599
2,531
2,494
2,479
2,500
2,730
2,701

58,827
58,905
59,933
59,670
59,079
58,868
59,568
59,265

5,488
5,642
6,386
6,110
5,986
5,984
6,322
6,323

39,593
39,571
39,848
39,812
39,628
39,438
39,927
39,705

2,352
2,390
2,386
2,369
2,393
2,405
2,366
2,364

11,394
11,302
11,313
11,379
11,072
11,041
10,953
10,873

7
,14
.21
.28
1976

14,368
14,320
14,122
11,986
12,413
12,652
12,343
12,228

6,039
6,187
6,265
6,160
6,397
6,400
6,447
6,547

21,080
20,933
20,733
20,766
20,763
20,535
20,620
19,978

7
.14
.21
.28
5
12
.19
.26
New York City

1975
1,288
1,216
1,163
1,092

3,550
3,555
3,563
3,551

676
553
608
617

3,779
3,906
3,896
3,822

1,722
1,727
1,728
1,736

6,257
6,679
6,767
6,868

2,331 3,735
2,370 3,724
2,196 3,730
2,046 3,737
2,140 3,723
2,382 3,727
2,296 3,777
2,243 3,784

588
634
654
641
639
638
614
650

3,984
4,074’
4,086
3,834
3,955
3,730
3,640
3,568

1,605
1,594
1,605
1,606
1,643
1,654
1,669
1,679

10,045
9,276
9,304
8,921
9,469
9,612
9,889
9,402

2,535
2,399
2,383
2,447

1,239
1,489
1,339
1,191

523
628
626
672

3,523 972 9,349 1,634 5,296
3,513 1,049 9,325 1,606 5,246
3,761 1,041 9,466 1,669 5,385
3,985 1,020 9,294 1,569 5,374

179
177
175
178

2,240
2,296
2,237
2,173

193
240
212
215
213
260
195
192

1,578
1,516
1,473
1,628
1,540
1,645
1,585
1,480

.14
.21
.28
1976

601
691
696
536
675
659
694
675

3,580 868 5,026
3,042 836 4,751
3,183 829 4,628
2,771 826 4,679
3,047 850 4,932
3,353 881 4,740
3,234 1,057 4,874
3,199 1,136 4,399

571
647
664
645
640
638
724
668

8,748
8,753
9,291
9,466
9,256
9,280
9,762
9,522

860
901
1,472
1,491
1,467
1,512
1,810
1,743

6,117
6,096
6,134
6,132
6,036
5,863
6,172
6,107

7
.14
.21
.28
5
.12
.19
.26
Outside
New York City

1975
1,327
1,243
1,229
1,108

2,852
2,872
2,906
2,930

30,555
30,592
30,561
30,591

759
676
720
731

14,337
14,225
14,280
14,126

4,014
4,008
3,996
4,005

23,169
22,944
23,139
23,479

4,723
4,572
4,561
4,587

3,541
3,575
3,615
3,654

12,409
12,407
12,374
12,662

2,496
2,390
2,589
2,576

51,139
51,028
51,012
50,671

4,536
4,364
4,432
4,412

34,484
34,280
34,323
34,288

2,202
2,237
2,256
2,218

9,917
10,147
10,001
9,753

1,397
1,318
1,262
1,331
1,315
1,323
1,340
1,353

2,743
2,815
2,824
2,902
2,905
2,887
2,942
2,998

31,847
32,001
32,037
32,154
32,214
32,286
32,320
32,420

1,177
1,167
1,210
1,252
1,235
1,257
1,131
1,157

14,168
14,285
14,328
14,412
14,402
14,267
14,278
14,227

6,606
6,682
6,654
6,699
6,643
6,697
6,743
6,746

33,922
34,763
34,347
32,485
32,583
32,475
32,251
32,052

10,788
11,278
10,939
9,215
9,366
9,299
9,109
9,029

5,171
5,351
5,436
5,334
5,547
5,519
5,390
5,411

16,054
16,182
16,105
16,087
15,831
15,795
15,746
15,579

1,909
1,952
1,867
1,849
1,839
1,862
2,006
2,033

50,079
50,152
50,642
50,204
49,823
49,588
49,806
49,743

4,628
4,741
4,914
4,619
4,519
4,472
4,512
4,580

33,476
33,475
33,714
33,680
33,592
33,575
33,755
33,598

2,159
2,150
2,174
2,154
2,180
2,145
2,171
2,172

9,816
9,786
9,840
9,751
9,532
9,396
9,368
9,393

.14
.21
.28
1976

For notes see pp. A-l 8 and A-22.




7
.14
.21
.28
5
.12
,19
.26

A20

WEEKLY REPORTING BANKS □ JUNE 1976
A S S E T S A N D L IA B IL ITIE S O F LARGE C O M M E R C IA L B A N K S A - C o n t i n u e d
(In millions o f dollars)

Deposits

Wednesday

Cash
items Re­
in
serves
process with
of
F.R.
collec­ Banks
tion

Bal­
Cur­ ances
rency with
and
do­
coin mestic
banks

Invest­
ments
Total
in sub­ Other assetsI
sidiar­ assets total
ies not
liabilconsol­
tites1
idated

Demand

Total

IPC

States
and
polit­
ical
sub­
divi­
sions

Domestic
inter!>ank
U.S.
Govt.

For­
eign
Com­ Mutual govts.,
etc. 3
mer­ sav­
cial
ings

Large banks—
Total

1975
May 7....................
14....................
21....................
28....................
1976
Apr. 7....................
14....................
21....................
28....................
May 5....................
12....................
19....................
26....................

30,063
33,061
30,532
35,893

21,342
23,225
25,842
23,312

4,347
4,728
4,701
4,993

12,033
11,812
11,421
11,787

1.741
1.741
1,765
1,735

35,492 492,235 156,082 111,954
35,247 495,309 157,622 116,972
34,420 493,176 154,826 113,779
35,757 498,432 161,862 117,952

6,168
6,011
6,015
5,949

1,669
1,100
1,476
1,430

22,779
21,235
20,758
22,676

885
686
689
780

1,300
1,025
1,062
1,208

32,805
36,610
33,787
33,587
34,410
34,536
33,153
32,972

18,481
22,227
22,426
21,281
23,238
22,844
21,026
19,984

4,780
5,276
5,403
5,510
4,710
5,274
5,202
5,497

12,652
12,363
11,384
11,599
12,529
11,538
11,805
11,951

2,031
2,052
2,050
2,044
2,049
2,062
2,116
2,143

40,938 505,885 164,032 119,286
42,922 511,949 168,597 124,478
41,920 505,239 165,549 121,487
42,158 501,615 162,628 118,064
43,776 508,048 164,974 117,561
43,649 505,531 161,914 118,472
42,397 501,727 159,830 116,487
43,467
160,626 116,082

5,699
5,933
5,732
6,003
6,548
5^954
5,854
5,968

1,233
1,409
3,546
2,442
2,962
1,663
2,729
1,968

24,262
22,860
21,823
21,981
23,953
21,929
21,990
23,020

843
777
765
744
838
710
707
686

1,122
1,009
939
1,275
1,322
1,103
1,046
1,115

10,780
12,151
10,925
12,667

7,849
7,428
8,364
8,500

649
659
682
702

5,358
5,087
4,761
4,983

801
810
810
787

12,343 128,034
12,042 127,948
11,407 127,129
12,389 129,066

46,152
45,900
45,321
48,195

25,942
27,786
26,848
28,016

558
660
614
570

195
133
195
271

11,257
9,988
9,878
10,662

555
386
391
466

1,093
844
882
1,024

10,975
12,781
10,388
12,165
11,394
11,950
11,121
11,943

5,948
6,447
5,602
6,678
7,723
6,664
4,714
4,467

766
747
776
829
746
753
730
763

5,206
5,039
4,377
4,824
4,870
4,902
5,321
5,517

866
866
869
867
870
871
932
927

13,713 126,502
14,460 128,995
13,923 125,402
13,927 126,522
14,477 127,422
14,691 127,283
13,826 125,746
15,137 126,898

46,167
48,307
46,246
48,189
47,122
46,033
45,609
47,800

26,470
28,574
27,604
27,333
26,567
25,963
26,605
26,696

475
516
588
558
617
575
581
574

101
147
690
453
579
296
403
373

11,005
10,713
9,890
10,843
11,022
10,403
10,397
11,617

476
901
431
800
727
408
405 1,039
448 1,099
362
886
367
829
370
881

19,283
20,910
19,607
23,226

13,493 3,698
15,797 4,069
17,478 4,019
14,812 4,291

6,675
6,725
6,660
6,*

940
931
955
948

23,149 364,201 109,930
23,205 367,361 111,722
23,013 366,047 109,505
23,368 369,366 113,667

86,012 5,610
89,186 5,351
86,931 5,401
89,936 5,379

1,474
967
1,281
1,159

11,522
11,247
10,880
12,014

330
300
298
314

207
181
180
184

21,830
23,829
23,399
21,422
23,016
22,586
22,032
21,029

12,533
15,780
16,824
14,603
15,515
16,180
16,312
15,517

7,446
7,324
7,007
6,775
7,659
6,636
6,484
6,434

1,165
1,186
1,181
1,177
1,179
1,191
1,184
1,216

27,225 379,383 117,865
28,462 382,954 120,290
27,997 379,837 119,303
28,231 375,093 114,439
29,299 380,626 117,852
28,958 378,248 115,881
28,571 375,981 114,221
28,330 373,494 112,826

92,816
95,904
93,883
90,731
90,994
92,509
89,882
89,386

5,224 1,132 13,257
5,417 1,262 12,147
5,144 2,856 11,933
5,445 1,989 11,138
5,931 2,383 12,931
5,379 1,367 11,526
5,273 2,326 11,593
5,394 1,595 11,403

367
346
357
339
390
348
340
316

221
209
212
236
223
217
217
234

New York City

1975
May 7....................
14....................
21....................
28....................
1976
Apr. 7....................
14....................
21....................
28....................
May 5....................
12....................
19....................
26....................
Outside
New York City

1975
May 7....................
14....................
21....................
28....................
1976
Apr. 7....................
14....................
21....................
28....................
May 5....................
12....................
19....................
26....................

For notes see pp. A-l 8 and A-22.




4,014
4,529
4,627
4,681
3,964
4,521
4,472
4,734

JUNE 1976 □ WEEKLY REPORTING BANKS

A21

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued
(In millions of dollars)

Deposits (cont.)

IPC
For­
eign
com­
mer­
cial
banks

Certi­
fied
and
offi­
cers’
checks

Borrowings
from—

Time and savings

Demand (cont.)

Total 7
Sav­
ings

Other

States
and
polit­
ical
sub­
divi­
sions

Do­
mes­
tic
inter­
bank

For­
eign
govts.3

Fed­
eral
funds
pur­
chased,
etc. 8

F.R.
Banks

Other
liabili­
ties,
etc. 9
Other

Total
equity
capital
and sub.
notes/
deben­
tures 10

Wednesday

Large banks—
Total

1975
5,014
5,013
4,670
4,681

6,313
5,580
6,377
7,186

224,586
226,032
226,164
225,491

63,104
63,390
63,771
64,092

113,645
114,860
114,395
113,745

25,430
25,425
25,683
25,543

8,171
8,053
8,092
8,011

12,345
12,467
12,453
12,541

49,456
49,732
49,649
49,108

2
5
711
459

3,672
3,675
3,585
3,256

23,213
23,083
23,168
23,141

35,224
35,160
35,073
35,115

5,163
5,196
5,138
5,155

6,424
6,935
6,119
6,964

224,592
223,380
222,198
221,616

79,066
78,813
79,183
79,349

106,703
105,820
104,391
104,228

21,407
21,707
21,776
21,660

7,696
7,579
7,390
7,301

8,150
7,917
7,903
7,555

54,949
56,870
54,533
54,273

27
312
142
206

3,701
3,747
3,398
3,504

19,848
20,271
20,650
20,496

38,736
38,772
38,769
38,892

.28

5,435
5,300
5,249
4,832

6,355
6,783
5,768
6,955

221,987
221,635
221,719
222,797

79,921
80,167
80,370
80,166

104,399
104,087
104,067
104,981

21,334
21,205
21,083
21,162

7,110
6,797
6,658
6,852

7,724
7,881
8,015
8,059

57,232
58,270
55,516
51,741

20
241
505
598

3,480
3,531
3,837
3,768

21,378
20,924
21,206
21,579

38,977
39,016
39,114
39,283

5
.12
.19
.26

7
.21
.28
1976
7

New York City

1975
3,714
3,668
3,442
3,370

2,838
2,435
3,071
3,816

48,924
48,960
48,488
47,999

7,095
7,158
7,205
7,248

27,103
27,122
26,702
26,354

1,840
1,811
1,859
1,794

3,696
3,649
3,629
3,611

7,796
7,876
7,778
7,894

13,598
13,718
13,328
13,900

3,913
3,870
3,814
3,835

2,826
3,256
2,525
3,723

43,348
42,989
42,642
42,232

9,070
9,039
9,131
9,147

23,609
23,379
22,986
22,936

1,438
1,460
1,441
1,429

3,139
3,035
3,021
2,992

5,072
5.079
5.079
4,762

15,190
15,810
14,475
14,035

4,069
3,933
3,890
3,534

2,721
3,615
2,537
3,755

42,588
42,289
42,520
42,999

9,211
9,216
9,274
9,232

23,218
23,011
23,184
23,481

1,371
1,343
1,292
1,321

2,920
2,730
2,662
2,839

4,931
5,042
5,165
5,133

15,422
16,630
14,893
13,287

685
62

7
.14
.21
.28

1,259
1,264
1,224
1,077

8,499
8.505
8.506
8,238

9,602
9,601
9,577
9,595

1,812
1,814
1,577
1,686

9,026
9,093
9,495
9,398

10,959
10.982
10,967
10.982

7
.14
.21
.28

1,677
1,729
1,909
1,644

9,580
9,318
9,432
9,479

11,033
11,044
11,105
11,317

5
.12
.19
.26

1976

240
278
372

Outside
New York City

1975
1,300
1,345
1,228
1,311

3,475
3,145
3,306
3,370

175,662
177,072
177,676
177,492

56,009
56,232
56,566
56,844

86,542
87,738
87,693
87,391

23,590
23,614
23,824
23,749

4,475
4,404
4,463
4,400

4,549
4,591
4,675
4,647

35,858
36,014
36,321
35,208

2
5
26
397

2,413
2,411
2,361
2,179

14,714
14,578
14,662
14,903

25,622
25,559
25,496
25,520

1,250
1,326
1,324
1,320

3,598
3,679
3,594
3,241

181,244
180,391
179,556
179,384

69,996
69,774
70,052
70,202

83,094
82,441
81,405
81,292

19,969
20,247
20,335
20,231

4,557
4,544
4,369
4,309

3,078
2,838
2,824
2,793

39,759
41,060
40,058
40,238

27
312
142
206

1,889
1,933
1,821
1,818

10,822
11,178
11,155
11,098

27,777
27,790
27,802
27,910

7
,14
,21
,28

1,366
1,367
1,359
1,298

3,634
3,168
3,231
3,200

179,399
179,346
179,199
179,798

70,710
70,951
71,096
70,934

81,181
81,076
80,883
81,500

19,963
19,862
19,791
19,841

4,190
4,067
3,996
4,013

2,793
2,839
2,850
2,926

41,810
41,640
40,623
38,454

20
1
227
226

1,803
1,802
1,928
2,124

11,798
11,606
11,774
12,100

27,944
27,972
28,009
27,966

5
12
13
26

7
.14
.21
.28
1976

For notes see pp. A-l 8 and A-22.




A22

WEEKLY REPORTING BANKS □ JUNE 1976
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued
(In millions of dollars)
Memoranda

Wednesday

Large negotiable
time CD’s
included in time
Total
De­
and savings deposits13
Total loans
mand
and
loans
(gross) invest­ deposits
ad­
adments
Issued Issued
justedn (gross) justed12
to
Total
to
ad­
IPC’s others
justed11

All other large
time deposits14

Total

Issued
to
IPC’s

Savings ownership categories

Gross
Individ­ Part­
liabili­
uals
ner­
Do­
ties of
and
ships mestic
banks
non­
and govern­ All
to
Issued profit
cor­ mental other 16 their
to
orga­ pora­ units
foreign
others niza­ tions for
branches
tions profit15

Large banks— Total

1975
286,233 370,411 101,571
14................................. 284,743 368,984 102,226
21................................. 284,370 369,030 102,060
2 8 ........ ..................... 284,174 368,745 101,863

83,864
84,952
84,325
83,535

55,217
56,231
55,634
54,986

28,647
28,721
28,691
28,549

36,485
36,459
36,575
36,282

18,800
18,856
18,910
18,718

17,685
17,603
17,665
17,564

63,104
63,390
63,771
64,092

2,323
2,098
3,212
2,613

1976
Anr.

7. .
14.................................
2 1 .................................
28............................... .

279,739
277,790
276,804
275,606

374,322
372,458
372,129
368,377

105,732
107,718
106,393
104,618

70,771
69,534
67,885
67,203

46,668
45,880
44,433
44,215

24,103
23,654
23,452
22,988

28,873
29,051
29,012
28*828

15,071
14,867
14,755
14,696

13,802
14,184
14,257
14,132

75,384
75,125
75,285
75,424

2,601
2,627
2,698
2,751

961
930
1,092
1,061

120
131
108
113

2,942
2,480
3,324
2,728

May

5 .................................
12.................................
19.................................
2 6 .................................

276,620
275,699
276,784
276,313

369,465
368,303
370,080
368,607

103,649
103,786
101,958
102,666

67,135
66,821
66,962
68,042

44,127
43,861
43,905
44,647

23,008
22,960
23,057
23,395

28,438
28,084
27,723
27,777

14,653
14,492
14,326
14,325

13,785
13,592
13,397
13,452

75,781
75,949
75,985
75,774

2,862
2,936
3,029
3,054

1,162
1,181
1,260
1,235

116
101
96
103

2,684
2,704
3,456
2,815

73,532
72,778
72,713
72,663

87,416
87,055
87,218
87,089

23,920
23,628
24,323
24,595

29,564
29,590
29,013
28,557

18,641
18,657
18,233
17,932

10,923
10,933
10,780
10,625

8,788
8,766
8,759
8,662

5,180
5,184
5,158
5,093

3,608
3,582
3,601
3,569

7,095
7,158
7,205
7,248

New York City

1975
M av

7
14.................................
21.................................
........
28..........

A n r.

7
14.................................
21 .................................
2 8 .................................

70,294
69,743
69,918
68,618

87,482
86,178
86,908
85,399

24,086
24,666
25,278
24,728

24,121
23,930
23,604
23,269

15,676
15,545
15,198
15,156

8,445
8,385
8,406
8,113

6,260
6,154
6,033
5,971

4,103
4,027
3,977
3,998

2,157
2,127
2,056
1,973

8,596
8,557
8,579
8,575

214
226
240
248

180
181
244
242

80
75
68
82

2,276
1,965
2,343
1,835

May

5 .................................
12.................................
19.................................
26 .................................

68,711
68,029
68,524
68,179

85,793
85,267
86,506
85,424

24,127
23,384
23,688
23,867

23,496
23,270
23,429
23,922

15,332
15,176
15,293
15,607

8,164
8,094
8,136
8,315

5,949
5,860
5,861
5,849

4,024
3,958
3,980
3,927

1,925
1,902
1,881
1,922

8,613
8,627
8,646
8,612

260
273
290
292

251
242
268
254

87
74
70
74

2,124
2,057
2,660
2,237

M av

212,701 282,995 77,651
14................................. 211,965 281,929 78,598
21___
.
. . . 211,657 281,812 77,737
28
211,511 281,656 77,268

54,300
55,362
55,312
54,978

36,576
37,574
37,401
37,054

17,724
17,788
17,911
17,924

27,697
27,693
27,816
27,620

13,620
13,672
13,752
13,625

14,077
14,021
14,064
13,995

56,009
56,232
56,566
56,844

A d t.

7
14.................................
21.................................
2 8.................................

209,445
208,047
206,886
206,988

286,840
286,280
285,221
282,978

81,646
83,052
81,115
79,890

46,650
45,604
44,281
43,934

30,992
30,335
29,235
29,059

15,658
15,269
15,046
14,875

22,613
22,897
22,979
22,857

10,968
10,840
10,778
10,698

11,645
12,057
12,201
12,159

66,788
66,568
66,706
66,849

2,387
2,401
2,458
2,503

781
749
848
819

40
56
40
31

666
515
981
893

May

5 .................................
12.................................
19.................................
2 6.................................

207,909
207,670
208,260
208,134

283,672
283,036
283,574
283,183

79,522
80,402
78,270
78,799

43,639
43,551
43,533
44,120

28,795
28,685
28,612
29,040

14,844
14,866
14,921
15,080

22,489
22,224
21,862
21,928

10,629
10,534
10,346
10,398

11,860
11,690
11,516
11,530

67,168
67,322
67,339
67,162

2,602
2,663
2,739
2,762

911
939
992
981

29
27
26
29

560
647
796
578

1,606
1,504
2,228
1,682

1976

Outside New York City

1975
7

717
594
984
931

1976

A See p. A-18.
1 Loan loss reserve and unearned income on loans had been reported
as liability items through Mar. 24, 1976! Since then the item is netted
against total loans, and therefore against total assets also. As a proxy for
this item prior to Mar. 31, 1976, reserves for loans have been used to
calculate year-ago figures.
2 Includes securities purchased under agreements to resell.
3 Includes official institutions and so forth.
4 Includes short-term notes and bills.
5 Federal agencies only.
* Includes corporate stocks.
7 Includes U.S. Govt, and foreign bank deposits, not shown separately.
8 Includes securities sold under agreements to repurchase.
9 Includes minority interest in consolidated subsidiaries. Beginning
Mar. 31, 1976, also includes deferred tax portion of reserves for loans.
10 Includes reserves for securities. Beginning Mar. 31, 1976, also
includes contingency portion of reserves for loans.




11 Exclusive of loans and Federal funds transactions with domestic
commercial banks.
12 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
13 Certificates of deposit issued in denominations of $100,000 or more.
14 All other time deposits issued in denominations of $100,000 or more
(not included in large negotiable CD’s).
15 Other than commercial banks.
16 Domestic and foreign com­
mercial banks, and official international organizations.
N o t e . —Eflfective Mar. 24, 1976, reclassification of loans in Chicago
resulted in the following major revisions: commercial and industrial,
—$675 million; other nonbank financial institutions, —$185 million;
real estate, $580 million. These reclassifications are not reflected in
data prior to Mar. 24, 1976.

JUNE 1976 o BUSINESS LOANS OF BANKS

A23

COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding

Net change during-

1976

Industry
May
26

May
19

1976

May
12

May
5

Apr.
28

Durable goods manufacturing:
Primary metals.................................
2,108 2,070 2,088 2,070 2,054
5,225 5,250 5,317 5,253 5,246
Machinery........................................
Transportation equipment............... 2,659 2,700 2,751 2,728 2,790
1,783 1,821 1,858 1,846 1,860
Other fabricated metal products. . .
Other durable goods........................
3,529 3,538 3,580 3,558 3,579
Nondurable goods manufacturing:
Food, liquor, and tobacco..............
3,048 3,059 3,070 3,142 3,158
3,136 3,149 3,179 3,153 3,099
Textiles, apparel, and leather..........
2,416 2,344 2,359 2,363 2,341
Petroleum refining...........................
2,506 2,521 2,564 2,587 2,602
Chemicals and rubber.....................
Other nondurable goods.................
1,874 1,874 1,888 1,916 1,936
Mining, including crude petroleum
6,607 6,563 6,501 6,516 6,486
and natural gas.............................
1,670 1,674 1,618 1,642 1,543
Trade: Commodity dealers.................
5,718 5,691 5,710 5,730 5,792
Other wholesale.......................
6,062 6,163 6,103 6,082 5,988
Retail........................................
5,784 5,786 5,857 5,847 5,830
Transportation.....................................
1,715 1,739 1,753 1,767 1,653
Communication...................................
Other public utilities............................ 6,073 5,997 5,976 6,028 5,940
4,239 4,291 4,292 4,348 4,357
Construction........................................
Services................................................. 10,619 10,622 10,692 10,839 10,763
All other domestic loans.....................
7,278 7,334 7,342 7,432 7,582
Bankers acceptances............................. 2,954 2,937 2,907 3,138 3,117
Foreign commercial and industrial
5,751 5,681 5,614 5,661 5,650
loans..............................................
Total classified loans........................... 92,754 92,804 93,019 93,646 93,366
Comm, paper included in total clas­
sified loans 1...................................

456

-1 0 0

Total commercial and industrial loans
of large commercial banks.......... 112,228 112,243 112,443 113,047 112,475

-247

356

Apr.

May

1976

Mar.

1975

I

1975

IV

III

2nd
half

1st
half

54
-21
-131
-7 7
-5 0

29
-217
-203
-2 6
73

-2 8
-1 3
-8 0
-137
-6 6

-4 8
-296
-5 2
-8 7
53

62
-781
-267
-473
-5 1 4

-1 2
50
18
-887 -1 ,6 6 8 -1 ,3 1 4
-198
-465
-3 0 2
-277
-7 5 0
-188
-174
-718
-688

-110
37
75
-9 6
-6 2

-113
100
117
-4 9
62

-261
98
-189
-3 9
-3 7

-509
308
-138
-4 0
66

455
-477
-234
-178
-268

13
-5 5
118
-253
-147

468 -1 ,6 0 9
-5 3 2
-287
-116
228
-2 6 0
-431
-283
-415

121
127
-7 4
74
-4 6
62
133
-118
-144
-304
-163

85
206
448
62
65
-104
16
337
324
63
133
176
-7
-9 7
-231
-4 2
-128
-289
-173
-8 8 4
-381
-6 7
-435
-701
-125
232
69
-2 3 4 -1,0 9 5 -2 ,5 8 7
-185
-166 -1,6 4 3

789
340
-103
-208
127
-4 9
33
-381
285
628
2,855

276
137
-7 8
-309
-124
-109
-231
-5 5
-3 0 0
15
-170

1,065

-149
A ll
-972
-181 -1 ,1 0 8
-517
-398
3 -321
-357
-158
-198 -1 ,4 2 3
-622
-436
-1 5 -1 ,1 2 0
643 -372
2,685
599

101
-612

280
77
82
-720 -1,977 -5 ,9 4 4

222
535
1,863 -2 ,2 8 5

757
294
-4 2 2 -10,664

12

7

24

-924 -2,511 -7,255

153

44

1,680 -2 ,6 2 2

197

240

-942 -10,370

For notes see table below.

“ TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change during—

Outstanding
Industry

Durable goods manufactur­
ing:
Primary metals...................
Machinery..........................
Transportation equipment.
Other fabricated metal
products..........................
Other durable goods..........
Nondurable goods manufac­
turing:
Food, liquor, and tobacco.
Textiles, apparel, and
leather.............................
Petroleum refining.............
Chemicals and rubber.......
Other nondurable g o o d s..
Mining, including crude pe­
troleum and natural gas.
Trade: Commodity dealers..
Other wholesale........
Retail.................. .
Transportation.......................
Communication.....................
Other public utilities.............
Construction..........................
Services...................................
All other domestic loans . . . .
Foreign commercial and in­
dustrial loans..................

1976

1975
Feb.
25

Jan.
28

Dec.
31

Nov.
26

Oct.
29

Sept.
24

1,283 '1,291
3,055 r3,144
1,632 1,691

1,335
3,072
1,643

1,341
3,117
1,686

1,372
3,313
1,615

1,381
3,451
1,727

1,320
3,538
1,624

1,338
3,737
1,693

919
1,871

909
1,793

1,035
1,838

1,041
1,874

1,024
1,823

1,087
1,905

1,175
1,950

May
26

Apr.
28

1,293
3,088
1,488
879
1,843

Mar.
31




1975
2nd
half'

IV

III

II

'- 8 1
' —169
76

34
-4 2 4
-7 8

50
-2 4 0
-4 7

4
-9 4
68

84
-6 6 4
-1 2 5

1,268
2,012

-115
-3 0

-2 4 4
-189

46
-7 8

-9 0
-161

-1 9 8
-2 6 7

I

1,334

1,366

1,391

1,536

1,547

1,578

1,544

1,451

1,471

-1 8 7

107

-4 3

-4 7

64

1,075
1,781
1,462
961

1,044
1,785
1,495
979

993
1,685
1,540
962

1,055
1,886
1,603
942

1,032
1,859
1,588
925

995
1,831
1,622
888

1,072
1,860
1,549
955

1,074
1,914
1,605
995

1,103
1,967
1,665
1,056

-2
-1 4 6
-8 2
74

-108
-136
-4 3
-168

8
258
-9 7
-8 7

-6 3
226
-8 4
13

-1 0 0
122
-1 4 0
-2 5 5

5,117
206
1,355
2,031
4,246
1,008
3,811
1,755
5,266
2,349

5,015 4,904
180
190
1,312 1,344
2,036 r2,008
4,252 4,250
984
998
3,770 3,898
1,877 '1,915
5,310 5,368
2,513 '2,700

4,731
182
1,279
1,987
4,329
1,095
3,940
2,141
5,147
3,093

4,528
196
1,290
2,007
4,291
1,101
3,995
2,258
5,038
3,396

4,484
172
1,276
1,996
4,390
1,081
3,979
2,181
5,135
3,299

3,867
168
1,308
2,115
4,324
1,112
3,942
2,207
5,082
3,116

3,896
162
1,403
2,150
4,420
1,122
4,027
2,267
5,097
3,054

3,847
420
150
18
1,319
68
'12
2,153
4,391
-1 4 0
1,132
-8 3
-8 1
3,966
2,359 '- 2 6 6
5,122
233
3,244 '- 5 9 9

637
22
-4 3
-157
-1
-5 1
13
-178
13
55

113
2
-1 0
17
-3 4
-1
-7 9
45
-1 8
-1 4

197
-2
-121
-1 4 7
-9 9
-2
11
117
-2 9 0
176

750
24
-5 3
-1 4 0
-3 5
-5 2
-6 6
-133
-5
41

3,121

3,085

3,001

2,999

2,921

2,851

2,834

2,763

63

158

169

66

327

45,469 45,763 '45,958 46,870 47,109 46,975 46,623 47,078 47,756 '-1,017

-781

-4 0

-3 2 2

-821

2,984

1 Reported the last Wednesday of each month.
description of series see article “Revised Series on Com­
mercial and Industrial Loans by Industry,” Feb. 1967 B u l l e t i n , p. 209.
N o t e . — For

1976

Commercial and industrial “term” loans are all outstanding loans with
an original maturity of more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity of the commitment was in excess of 1 year.

A24

DEMAND DEPOSIT OWNERSHIP □ JUNE 1976
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1
(In billions of dollars)
Type of holder
Class of bank, and quarter or month

Total
deposits,
IPC

Financial
business

Nonfinancial
business

Consumer

Foreign

All
other

1970—Dec..................................................................................

17.3

92.7

53.6

1.3

10.3

1971—Dec..................................................................................

18.5

98.4

58.6

1.3

10.7

187.5

1972—Dec.................................................................................

18.9

109.9

65.4

1.5

12.3

208.0

1973—Mar................................................................................
June................................................................................
Sept.................................................................................
Dec.................................................................................

18.6
18.6
18.8
19.1

102.8
106.6
108.3
116.2

65.1
67.3
69.1
70.1

1.7
2.0
2.1
2.4

11.8
11.8
11.9
12.4

200.0
206.3
210.3
220.1

1974—Mar................................................................................
June................................................................................
Sept.................................................................................
Dec.................................................................................

18.9
18.2
17.9
19.0

108.4
112.1
113.9
118.8

70.6
71.4
72.0
73.3

2.3
2.2
2.1
2.3

11.0
11.1
10.9
11 .7

211.2
215.0
216.8
225.0

1975—Mar.................................................................................
June................................................................................
Sept.................................................................................
Dec.................................................................................

18.6
19.4
19.0
20.1

111.3
115.1
118.7
125.1

73.2
74.8
76.5
78.0

2.3
2.3
2.2
2.4

10.9
10.6
10.6
11.3

216.3
222.2
227.0
236.9

1976—Mar......................... ......................................................

19.9

116.9

77.2

2.4

11.4

227.9

1971—Dec.................................................................................
1972—Dec.................................................................................
1973—Dec.................................................................................
1974—Dec.................................................................................

14.4
14.7
14.9
14.8

58.6
64.4
66.2
66.9

24.6
27.1
28.0
29.0

1.2
1.4
2.2
2.2

5.9
6.6
6.8
6.8

104.8
114.3
118.1
119.7

1975—Apr.................................................................................
June................................................................................
July.................................................................................
Aug.................................................................................
Sept.................................................................................
Oct..................................................................................
Nov.................................................................................
Dec.................................................................................

15.0
14.2
15.1
15.0
14.4
14.7
15.1
15.4
15.6

63.3
63.1
65.1
65.3
64.6
65.5
66.7
68.1
69.9

30.1
29.2
29.5
29.8
29.1
29.6
29.0
29.4
29.9

2.2
2.3
2.2
2.2
2.0
2.1
2.2
2.2
2.3

6.5
6.2
6.2
6.5
5.9
6.2
6.3
6.4
6.6

117.0
115.0
118.1
118.7
116.1
118.1
119.3
121.6
124.4

1976—Jan..................................................................................
Feb................................................................................
Mar.................................................................................
Apr.................................................................................

15.2
15.3
15.4
15.1

68.0
65.6
65.2
65.5

30.3
29.2
30.8
33.6

2.2
2.2
1.8
1.8

6.7
6.4
6.2
6.0

122.4
119.0
119.5
122.0

All insured commercial banks:
175.1

Weekly reporting banks:

1 Including cash items in process of collection.
N o t e . —Daily-average

balances maintained during month as estimated

from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971
B u l l e t i n , p. 466.

DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions of dollars)
Class of
bank
All commercial.........................
Insured...................................
National member..................
State member....... ................
All member...............................

Dec. 31,
1973
507
503
288
64
352

Dec. 31,
1974
389
387
236
39
275

June 30,
1975
338
335
223
36
260

Dec. 31,
1975
280
280
188
35
223

1 Beginning Nov. 9, 1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the B u l l e t i n for
July 1972, p. 626. Categories shown here as “Other large” and “All other
member” parallel the previous “Reserve City” (other than in New York
City and the City of Chicago) and “Country” categories, respectively
(hence the series are continuous over time).




Class of
bank
All member—Cont.
Other large banks 1
All other member 1
All nonmember........
Insured..................
Noninsured............

Dec. 31,
1973

58
294
155
152
3

Dec. 31,
1974

69
206
115
112
3

June 30,
1975

74
186
79
76
3

Dec. 31,
1975

76
146
58
58

N o t e . —Hypothecated deposits, as shown in this table, are treated one
way in monthly and weekly series for commercial banks and in another
way in call-date series. That is, they are excluded from “Time deposits”
and “Loans” in the monthly (and year-end) series as shown on p. A -l4;
from the figures for weekly reporting banks as shown on pp. A-l 8-A-22
(consumer instalment loans); and from the figures in the table at the
bottom of p. A-l 3. But they are included in the figures for “Time de­
posits” and “Loans” for call dates as shown on pp. A-14-A-17.

JUNE 1976 □ LOAN SALES BY BANKS; OPEN MARKET PAPER

A25

LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
To selected related institutions1
By type of loan

Date

i To bank’s own foreign branches, nonconsolidated non­
bank affiliates of the bank, the bank’s holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of
the holding company.

Total

Commercial
and
industrial

Real
estate

All
other

Feb.

4 .........................
11.........................
18.........................
25.........................

4,313
4,455
4,441
4,478

2,560
2,710
2,719
2,725

208
208
205
200

1,545
1,537
1,517
1,553

Mar.

3.........................
10.........................
17.........................
24.........................
31.........................

4,482
4,3$0
4,348
4,239
4,234

2,731
2,653
2,604
2,531
2,552

201
197
200
201
197

1,550
1,540
1,544
1,507
1,485

Apr.

7.........................
14.........................
21.........................
28.........................

4,050
4,082
4,121
4,176

2,459
2,480
2,531
2,560

195
197
194
200

1,396
1,405
1,396
1,416

May

5.........................
1 2 . . . ..................
19.........................
26.........................

4,174
4,346
4,307
4,334

2,567
2,727
2,704
2,682

195
193
192
208

1,412
1,426
1,411
1,444

N o t e . — Series changed on Aug. 28,1974. For a comparison
of the old and new data for that date, see p. 741 of the Oct.
1974 B u l l e t i n . Revised figures received since Oct. 1974
that affect that comparison are shown in note 2 to this table
in the Dec. 1974 B u l l e t i n , p. A-27.

COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances

Commercial paper

End
of
period

Bank-related 5

Financial
companies1

Non­
finan­
All
cial
issuers
Dealer- Di­
com­ Dealer- Di­
placed2 rectly- panies4 placed rectlyplaced3
placed

Based on—

Held by—

Total

Accepting banks
Total

Own
bills

Bills
bought

F.R. Banks
For­
Own eign
acct. corr.6

829
989
952
1,153
1,561

254 3,894
179 3,907
581 5,406
1,109 12,150

2,834
2,531
2,273
4,023

1,546 3,509
1,909 2,458
3,499 3,120
4,067 10,394

13,029
r12,822
12,559
11,965
11,138
10,766
10,538
10,760
10,372
9,975

3,845
3,690
3,665
3,466
3,474
3,305
3,313
3,467
3,545
3,726

4,296
4,206
4,186
4,080
3,865
3,806
3,783
3,947
3,888
4,001

248 10,904
231 11,827
245 11,433

3,891
3,977
4,027

3,906 10,880
4,039 11,044
4,193 10,681

1,160
352

3,134
1,997

983
1,447
1,344
1,318
1,960

215
459
200
249
735

193
164
58
64
57

20,582 6,247
22,098 6,968
27,204 8,382
31,839 12,694

524
1,226
1,938
1,814

1,449 7,889
1,411 6,898
2,943 8,892
6,518 18,484

3,480
2,706
2,837
4,226

2,689
2,006
2,318
3,685

791
700
519
542

261
106
68
999

31,221
32,144
32,821
31,115
31,263
32,172
30,496
32,308
32,003
31,276

14,264
14,018
12,607
12,045
12,072
11,993
12,187
11,726
11,120
10,175

1,618
1,543
1,561
1,649
1,511
1,482
1,634
1,715
1,762

1,682

7,272
7,002
7,096
7,230
7,038
7,392
7,316
7,114
6,974
6,892

18,730 4,773
18.727 4,485
18,108 4,450
17,740 4,774
16,930 4,778
16,456 4,546
16,790 5,002
17,304 r5,213
17,875 6,497
18.727 7,333

4,085
3,900
3,892
4,224
4,275
3,988
4,190
4,288
5,684
5,899

688
585
558
550
503
558
812
924
813
1,435

665
1,185
865
682
685
840
948
1,047
727
1,126

263
235
234
319
329
304
302
284
279
293

6,072 31,305 11,481
6,401 31,534 11,992
6,428 31,239 11,633

1,657
1,567
1,654

6,918 18,677
6,753 19,060
6,773 18,901

5,367
5,255
5,651

927
695
689

1,230
1,051

13,645
17,085
21,173
32,600
33,071

2,332
2,790
4,427
6,503
5,514

10,556
12,184
13,972
20,741
20,424

757
2,111
2,774
5,356
7,133

197
197
197
197

1
2
3
4

32,126
34,721
41,073
49,144

5,297
5,655
5,487
4,611

1975-Mar.
Apr.
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.

50,827
51,623
51,317
48,765
49,352
49,810
48,257
50,394
49,512
47,690

5,342
461
889
604
018
645
574
6,360
6,389
6,239

1976-Jan..
Feb..
Mar.

48,858
49,927
49,300

1 Financial companies are institutions engaged primarily in activities
such as, but not limited to, commercial, savings, and mortgage banking;
sales, personal, and mortgage financing; factoring, finance leasing, and
other business lending; insurance underwriting; and other investment
activities.
2 As reported by dealers; includes all financial company paper sold in
the open market.
3 As reported by financial companies that place their paper directly
with investors.




6,294
5,950
6,340

883

All
other

997
1,086
1,423
1,889
2,601

1,198
1,906
1,544
1,567
2,694

6
7
8
9
0

Im­
Ex­
ports
ports
from
into
United United
States States

2,022
2,090
2,717
3,674
4,057

3,603
4,317
4,428
5,451
7,058

196
196
196
196
197

Others

191
156
109
146
250

1,778
2,241
2,053
2,408
2,895

10,589
10,831
10,257
10,193
9,591
9,344
9,693
9,890
10,443
11,000

4 Nonfinancial companies include public utilities and firms engaged
primarily in activities such as communications, construction, manufac­
turing, mining, wholesale and retail trade, transportation, and services.
5 Included in dealer- and directly-placed financial company columns.
Coverage of bank-related companies was expanded in Aug. 1974. Most
of the increase resulting from this expanded coverage occurred in directlyplaced paper.
6 Beginning November 1974, the Board of Governors terminated the
System guarantee on acceptances purchased for foreign official accounts.

A26

INTEREST RATES □ JUNE 1976
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
Effective date

1974—Apr. 11
19
25
May

2
6
10
17

Rate
10

1975—Jan.

101/4

10%
JO*
11%

11 34

July

5

12

Oct.

7
21
28

Nov. 4
14
25

Feb.

111/4

June 26

Rate

Effective date

Rate

9
15,
20
28,

10%
10

1975-—July 18...................
28...................

7%
7%

9%

Aug. 12...................

734

3,
10,
18,
24,

9Va
9

Sept. 15...................

8

Oct.

734

Effective date

Mar.

1134
11%
11%
11
103^
10%

9V4

834
8%

5,
10,
18,
24,

8
7' 74
3/
7%

May 20,

71/4

June

7

m

9,

Nov.

5 ...................

Dec.

2 . .................

m

21...................

7
634

1976-—Jan.
June

Monthly average rate

7%

1...................

7

1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

10.05
8.96
7.93
7.50
7.40
7.07
7.15
7.66
7.88
7.96
7.53
7.26

1976—Jan.
Feb.
Mar.
April
May

7.00
6.75
6.75
6.75
6.75

RATES ON BUSINESS LOANS OF BANKS
Size of loan (in thousands of dollars)
1--9

All sizes

10-99

100-499

500-999

1,000 and over

Center
Feb.
1976

Nov.
1975

Feb.
1976

Nov.
1975

Feb.
1976

Nov.
1975

Feb.
1976

Nov.
1975

Feb.
1976

Nov.
1975

Feb.
1976

Nov.
1975

8.62
8.52
8.83
8.51
8.74
8.44
8.77

7.55
7.40
7.77
7.50
7.62
7.44
7.70

8.38
8.17
8.61
8.27
8.62
8.18
8.76

7.33
7.03
7.71
7.37
7.29
7.35
7.61

8.04
7.87
8.15
7.91
8.36
8.15
8.56

8.59
8.54
8.09
9.34
8.74
8.62
8.34

7.74
7.46
7.80
7.46
8.43
8.02
7.87

8.41
8.44
8.19
8.65
8.30
8.49
8.32

7.42
7.50
8.16
7.53
6.75
7.49
7.20

8.20
8.03
8.72
8.49
10.12
8.42
8.09

9.11
9.13
9.02
8.94
9.06
9.39
9.32

8.26
7.25
8.10
7.90
7.97
8.79
9.12

9.16
9.46
8.02
9.90
9.36
8.97
9.49

7.89
7.68
7.98
7.86
8.57
7.84
8.28

8.79
8.32
9.33
8.97
8.54
8.65
9.21

Short-term
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................

7.54
7.14
7.93
7.50
7.86
7.56
7.77

8.29
7.99
8.53
8.15
8.70
8.37
8.67

9.03
8.64
9.46
8.51
9.44
8.76
9.17

9.56
9.34
10.01
9.13
9.68
9.38
9.73

8.44
8.20
8.69
8.21
8.78
8.16
8.60

9.15
8.98
9.36
8.97
9.39
8.94
9.29

7.80
7.52
8.06
7.63
8.16
7.57
8.06

Revolving credit
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................

7.50
7.51
8.06
7.64
7.49
7.73
7.32

8.26
8.08
8.63
8.62
9.50
8.51
8.15

9.50
8.56
10.66
9.88
9.59
8.81
8.69

9.93
9.01
10.38
10.11
10.12
9.18
9.71

8.40
8.31
7.57
9.23
9.02
8.14
8.15

9.15
8.90
8.91
9.57
9.53
9.15
8.99

7.79
7.68
7.47
8.34
8.09
7.89
7.59

Long-term
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................




8.02
7.68
8.16
7.96
8.90
8.14
8.46

8.88
8.44
9.10
9.03
8.87
8.88
9.27

9.44
7.43
9.36
9.23
9.69
10.65
8.63

9.76
7.37
9.84
9.71
7.82
11.60
9.90

8.96
8.08
9.32
8.56
9.69
8.69
9.33

9.18
9.09
9.39
8.55
8.84
9.44
9.90

8.40
8.01
8.38
8.35
9.20
8.10
8.85

JUNE 1976 □ INTEREST RATES

A27

MONEY MARKET RATES
(Per cent per annum)
Prime
commercial
paper 1

Period

90-119
days

1967.........................
1968.........................
1969.........................

Finance
CO.

U.S. Government securitiess
Prime
bankers’
accept­
ances,
90 days3

Fed­
eral
funds
rate 4

4 to 6
months

paper
placed
directly,
3 to 6
months 2

5.10
5.90
7.83

4.89
5.69
7.16

4.75
5.75
7.61

4.22
5.66

7.72
5.11
4.69
8.15
9.87
6.33

7.23
4.91
4.52
7.40
8.62
6.16

5.82
5.79
6.44
6.70

5.74
5.53

3-month bills6

6 -month bills <5

9- to 12-month issues

Rate
on new
issue

Market
yield

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 ! 86

4.71
5! 46

7.31
4.85
4.47
8.08
9.92
6.30

7.17
4.66
4.44
8.74
10.51
5.82

6.458
4.348
4.071
7.041
7.886
5.838

6.39
4.33
4.07
7.03
7.84
5.80

6.562
4 511
4.466
7.178
7.926

6.51
4.52
4.49
7.20
7.95

4! 67
4! 77

6 .1 2 2

6 .1 1

5.22
5.55
6.14
6.24
5.82
5.22
5.20

5.315
5.193
6.164
6.463
6.383
6.081
5.468
5.504

5.23
5.34
6.13
6.44
6.42
5.96
5.48
5.44

5.649
5.463
6.492
6.940
6.870
6.385
5.751
5.933

Rate
on new
issue

Market
yield

1-year

bill (mar­ Other?
ket yield) 6

3- to 5year
issues 7

4.84
5 ! 62
7.06

5.07
5.59
6^85

4! 75

6.90

7.01
7.71
6.30

4! 86
7.30
8.25
6.70

7.37
5 *77
5.’ 85
6.92
7.81
7.55

5.59
5.61
6.50
6.94
6.92
6.25
5.80
5.85

5.91
5.86
6.64
7.16
7.20
6.48
6.07
6.16

6.31
6.26
7.07
7.55
7.54
6.89
6.40
6.51

7.49
7.26
7.72

5.71
5.78

6.19

1970.........................
1971.........................
1972.........................
1973.........................
1974.........................
1975.........................

10.05
6.26

1975—M ay..............
June..............
July...............
Aug...............
Sept...............
Oct........ .
Nov...............
Dec...............

5.70
5.67
6.32
6.59
6.79
6.35
5.78
5.88

6.48
5.91
5.97

6.39
6.53
6.43
5.79
5.86

5.76
5.70
6.40
6.74
6.83
6.28
5.79
5.72

1976—Jan................
Feb...............
Mar...............

5.15
5.13
5.25
5.08
5.44

5.27
5.23
5.37
5.23
5.54

5.16
5.09
5.27
5.13
5.38

5.08
4.99
5.18
5.03
5.53

4.87
4.77
4.84
4.82
5.29

4.961
4.852
5.047
4.878
5.185

4.87
4.88
5.00
4.86
5.20

5.238
5.144
5.488
5.201
5.600

5.14
5.20
5.44
5.18
5.62

5.44
5.53
5.82
5.54
5.98

6 .1 2

5.85
6.36

7.18
7.18
7.25
6.99
7.35

5.05
5.13
5.22
5.13

5.15
5.25
5.28
5.25

5.00
5.13
5.13
5.13

4.95
4.97
5.02
5.04

4.82
4.73
4.70
4.80

4.811
4.872
4.854
4.870

4.90
4.85
4.87
4.90

5.066
5.133
5.171
5.204

5.15
5.13
5.22
5.28

5.45
5.47
5.58
5.62

5.71
5.74
5.79
5.86

7.16
7.17
7.20
7.18

5.25
5.25
5.35
5.23

5.38
5.38
5.45
5.35

5.23
5.28
5.38
5.28

5.26
5.21
5.19
5.12

4.95
4.86
4.77
4.79

5.258
5.060
4.981
4.890

5.20
4.99
4.98
4.87

5.724
5.487
5.459
5.283

5.65
5.47
5.43
5.26

5.98
5.86
5.82
5.67

6.30
6.19
6.13
5.93

7.36
7.30
7.25
7.14

5.15
5.18
5.09
5.00

5.30
5.38
5.19
5.13

5.13
5.18
5.09
5.13

5.10
5.05
5.01
4.94

4.84
4.73
4.77
4.78

4.929
4.957
4.830
4.763

4.97
4.91
4.80
4.78

5.327
5.293
5.068
5.089

5.34
5.22
5.04
5.11

5.76
5.59
5.36
5.47

6.03
5.94
5.66
5.76

7.14
7.04

17........
24........
1........
8 .......
15 . . .
2 2 .......
29.......

5.03
5.20
5.30
5.53
5.73

5.15
5.30
5.43
5.63
5.83

5.13
5.15
5.30
5.45
5.63

5.07
5.21
5.39
5.67
5.87

4.93
5.03
5.02
5.28
5.50

4.909
4.921
5.072
5.250
5.495

4.88
4.91
5.11
5.33
5.47

5.230
5.339
5.426
5.726
5.908

5.24
5.30
5.51
5.79
5.89

5.61
5.68
5.89

5.90
5.98

7.04
7.11
7.28
7.46
7.56

M ay.............

4.66
8 .2 0

6 .8 6

6 .0 2

6 .1 0

6.49

8 .1 2
8 .2 2

7.80
7.51
7.50

Week ending—
1976—Feb.

7.......
14.......

2 1 .......

28.......
Mar.

6 ........
13 , .

2 0 .......

27.......
Apr.

May

3........

10 .......

1 Averages of the most representative daily offering rate quoted by
dealers.
2 Averages of the most representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of
the range of daily dealer closing rates offered for domestic issues; prior
data are averages of the most representative daily offering rate quoted by
dealers.
4 Seven-day averages of daily effective rates for week ending Wednesday.
Since July 19, 1973, the daily effective Federal funds rate is an average of
the rates on a given day weighted by the volume of transactions at these




6 .11

6.26

6 .2 1

6.56
6 .6 8

6 .8 8

6.92

rates. Prior to this date, the daily effective rate was the rate considered
most representative of the day’s transactions, usually the one at which
most transactions occurred.
5 Except for new bill issues, yields are averages computed from daily
closing bid prices.
6 Bills quoted on bank-discount-rate basis.
7 Selected note and bond issues.
N o t e . —Figures for Treasury bills are the revised series described on p.
A-35 of the Oct. 1972 B u l l e t i n .

A28

INTEREST RATES □ JUNE 1976
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds

Corporate bonds

State and local
United
States
(long­
term)

Period

Aaa utility

Stocks

By selected
rating

By
group

Dividend/
price ratio

Earnings/
price ratio

Total l
Total i

Aaa

Baa

New
issue

Re­
cently
offered

Aaa

Baa

Indus­
trial

Rail­
road

Public
utility

Pre­
ferred

Com­
mon

Com­
mon

6.46
5.41
5.50
7.12
11.60
9.03

Seasoned issues
1970...................
1971...................
1972...................
1973 ..................
1974...................
1975...................

6.59
5.74
5.63
6.30
6.99
6.98

6.42
5.62
5.30
5.22
6.19
7.05

6.12
5.22
5.04
4.99
5.89
6.42

6.75
5.89
5.60
5.49
6.53
7.62

8.68
7.62
7.31
7.74
9.33
9.40

8.71
7.66
7.34
7.75
9.34
9.41

8.51
7.94
7.63
7.80
8.98
9.46

8.04
7.39
7.21
7.44
8.57
8.83

9.11
8.56
8.16
8.24
9.50
10.39

8.26
7.57
7.35
7.60
8.78
9.25

8.77
8.38
7.99
8.12
8.98
9.39

8.68
8.13
7.74
7.83
9.27
9.88

7.22
6.75
7.27
7.23
8.23
8.38

3.83
3.14
2.84
3.06
4.47
4.31

1975—May. , ,
June........
July . . . .
Aug.........
Sept.........
Oct..........
Nov.........
Dec..........

6.99
6.86
6.89
7.06
7.29
7.29
7.21
7.17

6.95
6.96
7.07
7.12
7.40
7.40
7.41
7.29

6.42
6.28
6.39
6.40
6.70
6.67
6.64
6.50

7.48
7.48
7.60
7.71
7.96
8.01
8.08
7.96

9.63
9.25
9.41
9.46
9.68
9.45
9.20
9.36

9.65
9.32
9.42
9.49
9.57
9.43
9.26
9.21

9.55
9.45
9.43
9.51
9.55
9.51
9.44
9.45

8.90
8.77
8.84
8.95
8.95
8.86
8.78
8.79

10.46
10.40
10.33
10.35
10.38
10.37
10.33
10.35

9.37
9.29
9.26
9.29
9.35
9.32
9.27
9.26

9.49
9.40
9.37
9.41
9.42
9.40
9.36
9.37

9.93
9.81
9.81
9.93
9.98
9.94
9.83
9.87

8.51
8.34
8.24
8.41
8.56
8.58
8.50
8.57

4.08
4.02
4.02
4.36
4.39
4.22
4.07
4.14

1976—Jan..........
Feb........
Mar.........
Apr..........
M ay........

6.94
6.92
6.87
6.73
6.99

7.08
6.94
6.90
6.61
6.85

6.22
6.04
5.99
5.68
5.88

7.81
7.76
7.72
7.50
7.75

8.70
8.63
8.62
8.48
8.82

8.79
8.63
8.61
8.52
8.77

9.33
9.23
9.18
9.04
9.06

8.60
8.55
8.52
8.40
8.58

10.24
10.10
9.99
9.83
9.76

9.16
9.12
9.10
8.98
9.00

9.32
9.25
9.16
9.05
8.96

9.68
9.50
9.43
9.27
9.31

8.16
8.00
8.07
8.04
8.06

3.80
3.67
3.65
3.66
3.76

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

6.78
6.72
6.65
6.70

6.70
6.67
6.56
6.56

5.77
5.74
5.63
5.63

7.56
7.53
7.47
7.47

8.60
' 8! 42
8.38

8.54
8.50
8.44
8.54

9.10
9.08
9.03
9.01

8.46
8.42
8.36
8.36

9.92
9.90
9.85
9.81

9.04
9.01
8.97
8.95

9.11
9.09
9.07
9.02

9.34
9.31
9.27
9.24

8.14
8.14
8.07
8.01

3.61
3.64
3.71
3.61

1..
8..
15..
22..
29..

6.80
6.88
6.98
7.04
7.05

6.57
6.70
6.81
6.89
6.98

5.63
5.75
5.85
5.92
6.00

7.47
7.60
7.71
7.79
7.89

8.58
8.68
8.82
8.82
8.95

8.57
8.62
8.78
8.83
8.84

9.01
9.03
9.05
9.07
9.09

8.41
8.48
8.56
8.62
8.65

9.76
9.75
9.75
9.76
9.77

8.95
8.98
8.98
9.02
9.04

8.99
8.97
8.96
8.95
8.93

9.23
9.25
9.30
9.33
9.37

7.95
8.03
8.04
8.12
8.03

3.67
3.77
3.69
3.75
3.83

15

20

5

5

121

20

30

41

30

40

14

500

8.29
9.12
8.61

Week ending—
1976—Apr.

May

Number of

1 Includes bonds rated Aa and A, data for which are not shown separately. Because of a limited number of suitable issues, the number
of corporate bonds in some groups has varied somewhat. As of Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2 Number of issues varies over time; figures shown reflect most recent
count.
N o t e . —Annual yields are averages of weekly, monthly, or quarterly
data.
Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
Govt., averages of daily figures for bonds maturing or callable in 10 years
or more; from Federal Reserve Bank of New York. (2) State and local

500

govt., general obligations only, based on Thurs. figures, from Moody’s
Investors Service. (3) Corporate, rates for “New issue” and “Recently
offered” Aaa utility bonds, weekly averages compiled by the Board of
Governors of the Federal Reserve System; and rates for seasoned issues,
averages of daily figures from Moody’s Investors Service.
Stocks: Standard and Poor’s corporate series. Dividend/price ratios
are based on Wed. figures. Earnings/price ratios as of end of period.
Preferred stock ratio based on 8 median yields for a sample of non­
callable issues—12 industrial and 2 public utility. Common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates,

NOTES TO TABLES ON OPPOSITE PAGE:
Security Prices:
N o t e . —Annual

data are averages of daily or weekly figures. Monthly
and weekly data are averages of daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year
bond. Municipal and corporate bonds, derived from average yields as
computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks , derived from com­
ponent common stock prices. Average daily volume o f trading, presently
conducted 5 days per week for 6 hours per day.




Stock Market Customer Financing:
1 Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (Dec.
1970 B u l l e t i n , p. 920). Credit extended by brokers is end-of-month data
for member firms of the New York Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which ac­
counted for 60 per cent of security credit outstanding at banks on June 30,
1971.
2 In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise of subscription rights.
3 Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System’s list of over the counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated; at brokers, such stocks have no loan value.
4 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.

JUNE 1976 □ SECURITY MARKETS

A29

SECURITY PRICES
Common stock prices
Bond prices
(ner cent o f oar)

New York Stock Exchange
Standard and Poor’s index
(1941-43= 10)

Period

U.S.
Govt.
(long­
term)

State
and
local

Cor­
porate
AAA

1970............................
1971............................
1972........................
1973............................
1974............................
1975............................

60.52
67.73
68.71
62.80
57.45
57.44

72.3
80.0
84.4
85.4
76.3
68.9

61.6
65.0
65.9
63.7
58.8
56.2

1975--M ay...............
June...............

57.40
58.33
58.09
56.84
55.23
55.23
55.77
56.03

69.6
69.8
68.5
68.3
66.1
66.1
66.2
67.4

56.6
56.7
56.6
55.6
55.8
56.0
56.3
56.1

57.75
57.86
58.23
59.33
57.38

69.7
68.8
69.2
71.3
69.1

57.0
57.1
57.3
58.2
56.5

58.76
58.19
57.41
57.00
56.93

71.4
70.1
69.2
69.1
68.1

57.6
57.4
56.6
56.2
56.0

Aug................
Sept................
Oct..................
N ov................
D ec.................
1976--Jan..................
Feb.................
Mar................
A pr................
M a v ..................

New York Stock Exchange index
(Dec. 31, 1965=50)

Volume o f
Amer­
trading in
ican
stocks
Stock (thousands o f
Ex­
shares)
change
total
index
(Aug.
31,
1973 = NYSE AMEX
100)

Indus­
trial

Rail­
road

Public
utility

Total

Indus­
trial

Trans­
porta­
tion

Utility

Fi­
nance

83.22 91.29
98.29 108.35
109.20 121.79
107.43 120.44
82.85
92.91
85.17 96.15

32.13
41.94
44.11
38.05
37.53
37.48

54.48
59.33
56.90
53.47
38.91
41.21

45.72
54.22
60.29
57.42
43.84
45.73

48.03
57.92
65.73
63.08
48.08
51.88

32.14
44.35
50.17
37.74
31.89
30.73

37.24
39.53
38.48
37.69
29.82
31.45

54.64
70.38
78.35
70.12
49.67
46.62

96.63
113.40
129.10
103.80
79.97
83.15

10,532
15,381
16,487
16,374
13,883
18,568

3,376
4,234
4,447
3,004
1,908
2,150

38.92
39.69 47.76
38.97 43.65 49.21
38.04
43.67 49.54
July.................
35.13 41.04 45.71
34.94 40.53 44.97
36.92 42.59 46.87
37.81 43.77 47.64
37.07 43.25
46.78

53.22
54.61
54.96
50.71
50.05
52.26
52.91
63.70

32.28
32.38
32.90
30.08
29.46
30.79
32.09
31.61

31 .02
32.78
32.98
31.02
30.65
31 .87
32.99
32.75

49.97
52.20
52.51
46.55
43.38
44.36
45.10
43.86

86.94
90.57
93.28
85.74
84.26
83.46
85.60
82.50

21,785
21,286
20,076
13,404
12,717
15,893
16.795
15,859

2,521
2,743
2,750
1,476
1,439
1,629
1,613
1,977

96.86 108.45
100.64 113.43
101.08 113.73
101.93 114.67
101.16 113.76

41.42
43.40
44.54
44.91
46.09

46.99
47.22
45.67
46.07
45.70

51.31
53.73
54.01
54.28
53.87

56.72
59.79
61.60
60.62
60.22

35.77
38.53
39.19
38.66
39.71

35.23
36.12
35.44
35.69
35.40

48.83 91.47
52.06 100.58
52.59 104.04
52.71 103.00
50.99 103.65

32,794
31,375
23,069
18,770
17.796

3,070
4,765
3,479
2,368
2,127

102.14
101.26
102.46
101.36
99.57

45.52
45.53
46.77
46.44
45.63

46.13
46.01
46.21
45.68
44.88

54.38
53.89
54.58
53.99
53.02

60.65
60.11
60.99
60.40
59.39

39.66
39.06
40.30
40.24
39.23

35.91
35.89
35.95
35.31
34.46

52.02
51.35
51.75
50.86
49.99

16,268
16,280
19,678
18,374
16,850

1,944
1 ,996
2,396
2,090
2,024

Total

90.10
92.40
92.49
85.71
84.62
88.57
90.07
88.74

101.05
103.68
103.84
96.21
94.96
99.29
100.86
94.89

Week ending—
1976--May

1.........
8
15,
22
29.

114.77
113.85
115.23
113.98
111.97

102.93
102.21
104.76
104.60
103.02

For notes see opposite page.

STOCK MARKET CUSTOMER FINANCING
(In millions o f dollars)
Margin credit at brokers and banks 1
Unregu­
lated 3

Regulated 2
End of period

Margin stock
Total Brokers Banks

Convertible
bonds

Subscription
issues

Nonmargin
stock
credit at
banks

Brokers Banks Brokers Banks Brokers Banks

1975—Apr..
M ay.
June.
July.
Aug..
Sept..
O ct..
Nov..
D e c..

5,327
5,666
5,984
6,266
6,197
6,251
6,455
6,527
6,500

4,503
4,847
5,140
5,446
5,365
5,399
5,448
5,519
5,540

824
819
844
820
832
852
1.007
1.008
960

4,360
4,700
4,990
5.300
5,220
5,250
5.300
5,370
5,390

781
779
805
780
791
811
956
958
909

138
140
146
143
142
145
144
146
147

30
27
28
29
30
30
36
37
36

1976—Jan...
Feb..
Mar..
A pr..

6,568
7,152

5,568
6,115

1,000

5,420
5,950
6,410
6,690

946
984

146
162
163
163

34
34

For notes see opposite page.




Free credit balances
at brokers 4

By type

By source

1,037

Margin
accts.

Cash
accts.

15
13
15

1,885
1,883
2,434
2,387
2,457
2,520
2,311
2,270
2,281

505
520
520
555
515
470
545
490
475

1.790
1,705
1.790
1,710
1,500
1,455
1,495
1,470
1,525

20
20

2,321
2,333

655
685
r595
570

1,975
2,065
1,935
1,740

13
13

11
10
11
10

A30

STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ JUNE 1976
EQUITY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS

SPECIAL MISCELLANEOUS ACCOUNT BALANCES
AT BROKERS, BY EQUITY STATUS OF ACCOUNTS

(Per cent of total debt, except as noted)

(Per cent of total, except as noted)

End of
period

Total
debt
(mil­
lions
of
dol­
lars) 1

1975—A p r..
M ay .
June.
July..
Aug..
Sept..
Oct...
Nov..
D ec..
1976—Jan...
F e b ..
Mar..
A p r..

Equity class (per cent)
Net
credit
status

End of period
80 or
more

70-79

60-69

50-59

40-49

Under
40

4,360
4,700
4,990
5,300
5,220
5,250
5,300
5,370
5,390

7.1
7.0
7.4
6.0
5.5
5.1
5.5
5.2
5.3

8.7
9.1
9.9
8.3
6.8
7.3
6.7
6.7
6.9

16.1
16.7
18.3
13.9
11.3
10.6
11.2
12.2
11.6

28.7
31.5
32.7
23.6
20.7
19.6
21.8
23.2
22.3

23.5
21 .0
20.4
30.4
31.0
31.0
29.7
28.6
28.8

15.9
13.4
11.4
17.9
24.7
26.5
25.2
24.0
25.0

5,420
5,950
6,410
6,690

7.0
6.8
6.0
6.1

9.4
8.9
8.7
7.7

18.3
17.4
16.0
12.9

21.3
29.0
29.0
27.7

28.8
22.6
25.0
30.2

15.5
15.3
16.0
15.4

1975—Apr.......................

i Note 1 appears at the bottom of p. A-28.
N o t e . —Each customer’s equity in his collateral (market value of col­
lateral less net debit balance) is expressed as a percentage of current col­
lateral values.

July.......... ...........

1976—Jan........................
Feb.......................

Equity class of accounts
in debit status

Total
balance
(millions
60 per cent Less than of dollars)
or more 60 per cent

45.2
44.5
45.9
45.6
43.5
45.3
44.4
45.3
43.8

41.1
43.2
43.1
41.1
40.6
38.9
40.1
40.2
40.8

13.7
12.3
11.0
13.1
16.0
15.8
15.5
14.5
15.4

7,505
7,601
7,875
7,772
7,494
7,515
7,362
7,425
7,290

45.8
44.4
44.0
43.0

44.0
44.7
46.0
45.0

10.3
10.9
10.4
12.0

r7,770
'8,040
8,050
7,990

N o t e . —Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer’s margin account or deposits of cash (usually
sales proceeds) occur.

MUTUAL SAYINGS BANKS
(In millions of dollars)
Securities

Loans

End of period

Mort­
gage

Other

U.S.
Govt.

State
and
local
govt.

Corpo­ Cash
rate
and
other1

Total
assets—
Total
Other liabili­
ties
assets
and
general
reserve
accts.

Depos­
its

Mortgage loan
commitments 2
classified by maturity
(in months)

Other General
liabili­ reserve
ac­
ties
counts
3 or
less

3-6

6-9

Over
9

Total

1971............. .
19723.............
1973...............
1974...............
1975...............

62,069
67,563
73,231
74,891
77,127

2,808
2,979
3,871
3,812
4,028

3,334
3,510
2,957
2,555
4,777

385
873
926
930
1,541

17,674
21,906
21,383
22,550
27,964

1,389
1,644
1,968
2,167
2,367

1,711
2,117
2,314
2,645
3,195

89,369 81,440
100,593 91,613
106,651 96,496
109,550 98,701
120,999 109,796

1,810
2,024
2,566
2,888
2,770

6,118
6,956
7.589
7,961
8,433

1,047
1,593
1,250
664
896

627
713
598
418
301

463 1,310 3,447
609 1,624 4,539
405 1,008 3,261
232
726 2,040
203
403 1,803

1975—M a r...
Apr.. . .
M ay...
June...
July. . .
A ug....
Sept.. .
Oct__
N ov...
Dec.r..

75,127
75,259
75,440
75,763
76,097
76,310
76,429
76,655
76,855
77,221

4,736
4,407
4,593
4,492
4,396
4,405
4,487
4,481
4,550
4,023

2,975
3,419
3,616
3,744
3,965
4,187
4,279
4,368
4,601
4,740

1,095
1,121
1,137
1,240
1,436
1,451
1,495
1,523
1,551
1,545

24,339
24,994
25,579
26,470
26,976
27,104
27,033
27,106
27,421
27,992

2,101
1,841
2,077
2,088
1,835
1,730
1,783
1,805
1,872
2,330

2,672
2,780
2,811
2,954
3,004
3,067
3,136
3,152
3,223
3,205

113,045
113,821
115,252
116,751
117,709
118,254
118,643
119,089
120,073
121,056

102,285
102,902
104,056
105,993
106,533
106,745
107,560
107,812
108,480
109,873

2,712
2,849
3,080
2,594
2,970
3,255
2,778
2,950
3,215
2,755

8,049
8,071
8,116
8,164
8,208
8,254
8,304
8,328
8,378
8,428

824
913
955
973
957
981
1,011
950
972
896

312
335
383
510
463
431
372
368
323
301

294
312
300
195
266
237
256
275
222
203

564
538
573
565
526
573
499
394
379
403

1976—Ja n .. . . 77,308
F eb. . . 77,413
M ar.p. 77,738

4,839
5,243
5,366

4,918
5,211
5,452

1,581 28,473
1,765 29,035
1,867 30,043

1,961
1,853
1,740

3,245 122,325 110,979
3,301 123,821 112,019
3,321 125,526 114,090

2,892
3,275
2,859

8,455
8,527
8,577

923
930
1,092

315
352
360

195
184
251

426 1,859
401 1,867
427 2,130

1 Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2 Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans.
3 Balance sheet data beginning 1972 are reported on a gross-of-valua-




1,994
2,098
2,211
2,243
2,212
2,222
2,138
1,987
1,896
1,803

tion-reserves basis. The data differ somewhat from balance sheet data
previously reported by National Assn. of Mutual Savings Banks, which
were net of valuation reserves. For most items, however, the differences
are relatively small.
N o t e . — NAMSB

estimates for all savings banks in the United States.

JUNE 1976 □ SAVINGS INSTITUTIONS

A31

LIFE INSURANCE COMPANIES
(In millions o f doilars)

Government securities
Total
assets

End o f period

Business securities

United State and Foreign
States
local

Total

Total

Bonds

Stocks

Mort­
gages

Real
estate

Policy
loans

Other
assets

197 1
197 2
197 3
1974*-...........
1975.............

222,102
239,730
252,436
263,349
289.084

11,000
11,372
11,403
11,965
14.582

4,455
4,562
4,328
4,437
5.894

3,363
3,367
3,412
3,667
4.440

3,182
3,443
3,663
3,861
4.248

99,805 79,198
112,985 86,140
117,715 91,796
118,572 96,652
135.014 106.755

20,607
26,845
25.919
21.920
28.259

75,496
76,948
81,369
86,234
89.358

6,904
7,295
7,693
8,331
9.634

17,065
18,003
20,199
22,862
24.389

11,832
13,127
14,057
15,385
16.107

1975—Jan.r.
Feb.r
M ar.r
A pr..
May.
June.
July.,
Aug..
Sept..
Oct...
Nov..
Dec..

266,331
269,379
271,639
273,523
275,816
278,343
279,354
280,482
281,847
284,829
286,975
289.084

12,118
12,230
12,364
12,374
12,464
12,560
12,814
13,022
13,150
13,793
14,129
14.582

4,517
4,595
4,695
4,608
4,678
4,738
4,843
4.895
4,914
5,505
5,762
5,894

3,670
3,685
3,696
3,719
3,739
3,762
3,902
4,039
4,122
4,148
4,210
4.440

3,931
3,950
3,973
4.047
4.047
4,060
4,069
4,088
4,114
4,140
4,157
4.248

121,526
123,638
124,934
126,256
127,847
129,838
130,298
130,659
131,524
133,237
134,495
135.014

98,286
98,945
99,371
99,725
100,478
101,238
102,675
103,496
104,529
105,473
106,385
106.755

23,240
24,693
25,563
26,531
27,369
28,600
27,623
27,163
26,995
27,764
28,110
28.259

86,533
86,959
87,246
87,638
87,882
88,035
88,162
88,327
88,445
88,655
88,850
89.358

8,395
8,499
8,668
8,782
8,843
8,989
9,058
9,112
9,210
9,356
9,464
9.634

23,012
23,177
23,326
23,459
23,570
23,675
23,794
23,919
24,048
24,171
24,271
24.389

14,747
14,876
15,101
15,014
15,210
15,246
15,228
15,443
15,470
15,617
15,766
16.107

1976—Jan.. ,

293,870
296,479

15,380
16,142

6,446
6,458

4,652
4,790

4,282 138,965 108,130
4,894 140,332 109,321

30,835
31,011

89,395
89,543

9,661
9,726

24,498
24,633

15,971
16,103

Feb.*

l Issues of foreign governments and their subdivisions and bonds of
Figures are annual statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
the International Bank for Reconstruction and Development.
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total in
N o t e . — Institute of Life Insurance estimates for all life insurance
“ Other assets.”
companies in the United States.

SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)
Liabilities

Assets
End of period

Mort­
gages

Invest­
ment
secur­
ities 1

Cash

Mortgage
loan com­
mitments
outstanding
at end of
period4

Other

Total
assets—
Total
liabilities

Savings
capital

Net
worth2

Bor­
rowed
money 3

Loans
in
process

10,731
12,590
19,117
22,991
28,802

206,023
243,127
271,905
295,524
338,395

174,197
206,764
226,968
242,959
286,042

13,592
15,240
17,056
18,436
19,776

8,992
9,782
17,172
24,780
20,730

5,029
6,209
4,667
3,244
5,187

4,213
5,132
6,042
6,105
6,659

7,328
11,515
9,526
7,454
10,675

Other

1971..................................
1972..................................
19735................................
1974..................................
1975..................................

174,250
206,182
231,733
249,293
278,693

1975—Apr........................
May......................
June......................
July.......................
Aug.......................
Sept.......................
Oct........................
Nov.......................
Dec........................

254,727
257,911
261,336
264,458
267,717
270,600
273,596
275,919
278,693

29,047
30,648
30,880
32,054
31,694
30,786
31,652
32,498
30,900

24,868
25,520
25,786
26,311
27,127
27,745
28,145
28,610
28,802

308,642
314,079
318,003
322,823
326,538
329,131
333,393
337,027
338,395

258,875
262,770
268,978
272,032
273,504
277,201
279,465
281,711
286,042

18,882
19,128
18,992
19,266
19,495
19,414
19,663
19,919
19,776

r 19,829
’•19,301
*•18,863
r 18,744
*•19,216
*•20,031
'20,306
*•20,413
*•20,709

3,608
4,105
4,446
4,771
4,995
5,128
5,207
5,164
5,187

*•7,448
*•8,775
*•6,724
*•8,010
*•9,328
*•7,357
*•8,752
*•9,820
*•6,680

11,653
12,557
12,363
12,611
12,673
12,585
11,748
11,365
10,675

1976—Jan........................
Feb........................
Mar.......................
Apr.*.....................

280,071
282,487
286,556
290,680

34,271
36,128
36,722
36, 437

29,716
30,251
30,462
30,697

344,058
348,866
353,740
357,814

291,418
295,364
302,436
305,243

19,948
20,162
2,0211
20,474

*•19,630
*•18,746
18,220
17,740

5,051
5,134
5,379
5,789

*•8,011
*•9,460
7,494
8,568

11,111
12,878
14,445
15,551

2,857
18,185
21,574
2,781
21,055
23,240
30,900

1 Excludes stock of the Federal Home Loan Bank Board. Compensating
changes have been made in “Other” assets.
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Advances from FHLBB and other borrowing.
4 Data comparable with those shown for mutual savings banks (on
opposite page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
Home Loan Mortgage Corporation, loans and notes insured by the
Farmers Home Administration, and certain other Govt.-insured mortgagetype investments, previously included in mortgage loans, are included




in other assets. The effect of this change was to reduce the mortgage
total by about $0.6 billion.
Also, GNMA-guaranteed, mortgage-backed securities of the pass­
through type, previously included in “Cash” and “Investment securities”
are included in “ Other” assets. These amounted to about $2.4 billion at
the end of 1972.
N o t e . — FHLBB data; figures are estimates for all savings and loan
assns. in the United States. Data are based on monthly reports of insured
assns. and annual reports of noninsured assns. Data for current and
preceding year are preliminary even when revised.

A32

FEDERAL FINANCE □ JUNE 1976
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions of dollars)
U.S. budget

Means of financing
Borrowings from the public

Period

Receipts Outlays

Surplus
Less: Invest­
or
Public
ments by Govt,
Trea­
debt Agency
Less: Equals:
deficit
accounts
sury
securi­ securi­
Special Total
operat­
(-)
ties
ties
notes i
ing
Special Other
balance
issues

Fiscal year:
197 2
197 3
197 4
197 5

208,649
232,225
264,932
280,997

231,876 -23,227 29,131 -1,269 6,796 1,623
246,526 -14,301 30,881
216 11,712
109
268,392 -3 ,4 6 0 16,918
903 13,673 1,140
324,601 -43,604 58,953 -1,069 8,112 -1,081

Half year:
1974—Jan.-June
July-Dee.,
1975 - Jan.-June,
July-Dee.,

140,676
139,607
141,189
139,453

138,030
2,646 5,162
153,147 -13,540 18,429
171,202 -30,013 40,524
184,545 -45,092 43,460

Month:

1975—
Apr.' . . . .
M ay........
June........
July.........
Aug.........
Sept.........
Oct..........
Nov........
Dec.........

31,392
12,793
31,817
20,197
23,584
28,615
19,316
21,745
25,995

29,130
28,186
30,296
31,249
30,634
29,044
32,425
29,401
31,792

1976—Ja n
Feb..........

25,634
20,845
20,431
33,348

30,725 -5,0 9 1
29,833 -8 ,9 8 7
29,054 -8 ,6 2 3
872
32,476

Mar..........

Apr.........

Less: Cash and
monetary assets

2,261 7,081
-15,394 11,418
1,521 5,030
-11,052 5,051
-7 ,0 5 0 9,472
-429 5,935
-13,109 8,352
-7 ,6 5 6 4,800
-5 ,7 9 7 9,850
7,757
9,465
6,620
1,483

426 8,297
295
-689 2,840
150
-423 5,272 -1,231
-3 9 -4,739 -1,186

Other

19,442
19,275
3,009
50,853

1,362
2,459
-3,417
-1,570

1,108 6,255
-1,613 -4,129
889 -2,077
1,890 -6,920

-3 ,0 0 5
14,751
36,059
49,347

-1,215
-3,228
1,657
866

1,208
352
557 -3,881
1,643 -2,746
-9 8 0 -4,368

-2 4
10
-6
3,296
- 5 5 4,131
-2 3 -2,427
6 2,384
9 -2,151
- 5 -3,656
-3
-749
-2 4 1,860

-451
-4 4 0
276
-346
-9 4
-367
260
-3 9 0
-249

7,499
8,556
567
7,800
7,189
8,463
11,743
5,936
8,215

7,666
-5,757
-949
-3,390
-630
6,961
-203
-3,844
1,971

-2
5
-6
-3 2

328
-5 6 4
-8 3
4

7,820
8,972
7,320
1,398

3,532
64
-4,032
3,517

-393
1,062
-623
50

Other
means
of
financ­
ing,
net2

1,814
-732
56
-1,373
-263
446
-348
392
166

-2 8 0
349
-2,981
-1,511
-1,032
-627
815
-1,732
-281

114
918
-125
-4 6
-2 8 8 -3,018
545 1,792

Selected balances
Treasury operating balance
End
of
period
F.R.
Banks

Tax
and
loan
accounts

Other
deposi­
taries 3

Borrowing from the public.

Total

Public
debt
securities

Agency
securities

Less:
Investments of
Govt, accounts
Special
issues

Other

Less:
Special
notes i

Equals:
Total

Memo:
Debt of
Govt.sponsored
corps.—
Now
private4

Fiscal year:
197 1
197 2
197 3
197 4
197 5

1,274
2,344
4,038
2,919
5,773

7,372
7,634
8,433
6,152
1,475

109
139
106
88
343

8,755
10,117
12,576
9,159
7,591

398,130
427,260
458,142
475,060
533,188

12,163
10,894
11,109
12,012
10,943

82,740
89,536
101,248
114,921
123,033

22,400
24,023
24,133
25,273
24,192

825
825
825
825
( 5)

304,328
323,770
343,045
346,053
396,906

37,086
41,814
51,325
65,411
76,092

Calendar year:
197 3
197 4
197 5

2,543
3,113
7,286

7,760
2,745
1,159

70
70
7

10,374
5,928
8,452

469,898
492,664
576,649

11,586
11,323
10,904

106,624
117,761
118,294

24,978
25,423
23,006

825
( 5)

349,058
360,804
446,253

59,857
76,459

Month:
1975—Ap r
M ay...,
June....
Ju ly ...,
Aug---Sept.. .,
Oct.......
Nov... .
Dec___

8,364
7,040
5,773
2,776
2,349
8,074
8,517
4,919
7,286

5,415
984
1,475
878
1,214
2,162
1,251
1,558
1,159

521
521
343
444
-141
529
559
9
7

14,299
8,545
7,591
4,098
3,423
10,765
10,327
6,485
8,452

516,740
528,158
533,188
538,240
547,711
553,647
561,999
566,799
576,649

11,004
10,998
10,943
10,920
10,926
10,935
10,931
10,928
10,904

115,606
118,902
123,033
120,606
122,990
120,839
117,183
116,434
118,294

24,355
23,916
24,192
23,847
23,752
23,385
23,645
23,255
23,006

387,783
396,339
396,906
404,707
411,895
420,358
432,102
438,037
446,253

77,124
75,140
76,092
77,173
76,659
77,026
78,016
78,451
78,842

1976—Ja......... n
Feb.
M ar...
Apr__

10,075
10,366
7,144
9,806

1,905
1,678
868
1,723

7
7
7
7

11,987
1,205
8,019
11,536

584,405
593,871
600,490
601,973

10,902
10,907
10,901
10,870

117,901
118,963
118,340
118,390

23,333
22,770
22,686
22,690

454,072
463,045
470,365
471,763

79,355
78,359
78,712

1 Represents non-interest-bearing public debt securities issued to the
International Monetary Fund and international lending organizations.
New obligations to these agencies are handled by letters of credit.
2 Includes accrued interest payable on public debt securities until June
1973 and total accrued interest payable to the public thereafter; deposit
funds; miscellaneous liability (includes checks outstanding) and asset
accounts; seigniorage; increment on gold; fiscal 1974 conversion of in­
terest receipts of Govt, accounts to an accrual basis; gold holdings, gold
certificates and other liabilities, and gold balance beginning Jan. 1974;
and net gain/loss for U.S. currency valuation adjustment beginning June
1975.
3 As of Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded “Other deposi­




taries” (deposits in certain commercial depositaries that have been con­
verted from a time to a demand basis to permit greater flexibility in
Treasury cash management).
4 Includes debt of Federal home loan banks, Federal land banks, R.F.K.
Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate
credit banks and banks for cooperatives (both beginning Dec. 1968).
5 Beginning July 1974, public debt securities excludes $825 million of
notes issued to International Monetary Fund to conform with Office of
Management and Budget’s presentation of the budget.

Note.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

JUNE 1976 □ FEDERAL FINANCE

A33

FEDERAL FISCAL OPERATIONS: DETAIL
(In millions of dollars)

Budget receipts
Individual income taxes

Corporation
income taxes

Period
Pres.
Elec­ Non­
tion with­ Re­
Cam­ held funds
paign
Fund1

Total
With­
held

Fiscal year:
1972....................... 208,649 83,200
1973....................... 232,225 98,093
264,932 112,092
1975....................... 280,997 122,071

25,679 14,143
27,017 21,866
30,812 23,952
1974.......................
32 34,296 34,013

Social insurance taxes
and contributions

Employment
taxes and
Excise
contribution2 Un- Other
Gross
taxes
re­
Re­
empl. net
Net
ceipts funds
insur. re­
total
ceipts3
Pay­ Selfroll empl.
taxes

Net
total

94,737 34,926
103,246 39,045
118,952 41,744
122,386 45,747

2,760
2,893
3,125
5,125

44,088
52,505
62,878
28
71,789

32,919 2,807 3,862 2,084 41,671
34,418
254 2,914 2,187 39,774
37,371 3,163 3,856 2,279 46,667
35,443
268 2,861 2,314 40,886

2,032
2,371
3,008
3,417

Cus­ Estate Misc.
toms and
re­
gift ceipts4

4,357 3,437 53,914 15,477 3,287
6,051 3,614 64,542 16,260 3,188
6,837
76,780 16,844 3,334
6,770 4,466 86,441 16,551 3,676

Half year:
1974—Jan.-June..
July-Dee...
1975—Jan.-June..
July-Dee...

140,676
139,607
141,190
139,453

59,100
61,378
60,694
59,549

28 24,605 22,953
7,098 1,016
27,198 32,997
7,649 1,362

60,782
67,461
54,926
65,835

25,155
18,247
27,500
18,810

1,631
2,016
3,109
2,735

Month:
1975—Apr............
May...........
June...........
July...........
Aug............
Sept............
Oct.............
Nov............
Dec.............

r31,392
12,793
31,817
20,197
23,584
28,615
19,316
21,745
25,995

9,542
10,300
10,027
9,205
10,246
9,182
9,983
10,195
10,738

15 12,766 6,258
819 12,749
4,541 1,444
908
498
331
488
382
4,809
589 -8 1
124
283
571
109

16,065
-1,630
13,123
9,615
10,403
13,609
10,653
10,354
11,200

5,819
1,192
10,241
1,838
1,045
6,277
1,694
1,072
6,884

726
18
664
471
425
264
821
399
354

557
5,438 1,743
340 2,209
7,689
5,552
92
373
444
5,309
8,085
1,257
5,555
251
75
259
4,551
6,900
716
5,043
17
110

388
350
413
374
372
400
395
377
395

1976—Jan............. 25,634
Feb............. 20,845
Mar............ 20,431
Apr............ 33,348

9,518
10,938
11,377
10,029

1 5,843
86 15,276
933 4,100 7,778
7
9 2,532 8,646 5,272
7 12,723| 7,512 15,248

1,771
1,203
6,485
6,727

218
422
621
607

5,540
225
8,330
237
5,796
275
6,179 1,832

442
370
435
386

223
693
129
952

5,436
4,917
5,035
4,611

3,633
3,921
4,051
5,369
6,711

7,878
8,761
7,790
8,759

1,701
1,958
1,718
1,927

2,521
2,284
2,327
2,573

2,601
3,140
3,370
3,397

8,126
10,588
6,431
6,128
9,713
6,280
5,206
7,994
5,565

1,166
1,373
1,464
1,514
1,394
1,430
1,462
1,476
1,482

286
270
301
313
302
312
343
310
347

317
459
412
503
430
431
396
428
386

r339
559
508
757
723
539
382
511
485

6,430
9,631
6,635
9,349

1,335
1,354
1,344
1,353

348
288
384
357

401
475
450
387

292
538
482
535

Budget outlays
Gen­
eral
sci­
ence,
space,
and
tech.

Nat­
ural
Comre­
Agri­
Com­ mun.
cul­ sources, merce
and
ture
envir.,
and region.
and
transp. devel­
energy
opment

Total

Na­
tional
de­
fense

246,526
268,392
324,601
373,535
97,971
394,237

75,072
78,569
86,585
92,759
25,028
101,129

2,956
3,593
4,358
5,665
1,334
6,824

4,030
3,977
3,989
4,311
1,157
4,507

29,130
28,186
30,296
31,249
30,634
29,044
32,425
29,401
31,792

7,545
8,000
7,854
7,307
8,229
6,923
8,192
7,533
7,981

303
408
557
531
448
47
362
419
290

359
384
256
476
402
398
398
405
409

132
42
179
270
117
507
312
196
175

695
679
788
821
770
844
740
786
814

1976--Jan........... 30,725
Feb.......... 29,833
Mar......... 29,054
Apr.......... 32,476

6,915
6,120
7,752
7,994

351
320
320
249

336
413
379
360

228
315
44
-51

718
1,833
935
984

Period

Fiscal year:
1973...................
1974
1975.
19767
TQ 78

19777
Month:
1975--A pr.r . . . .
M ay........
June........
July.........
Aug.........
Sept.........
Oct..........
Nov.........
Dec..........

Intl.
affairs




Vet­
erans

Inter­
est

Gen­
eral
Govt.,
law
en­
force.,
and
justice

Rev­
enue
shar.
and
fiscal
assist­
ance

Undistrib.
off­
setting
re­
ceipts 5

5,529
4,911
4,431
5,802
1,529
5,532

11,874
11,598
15,248
18,900
4,403
16,615

91,790
106,505
136,252
160,646
41,033
171,508

12,013
13,386
16,597
19,035
4,362
17,196

22,813
28,072
30,974
34,835
9,769
41,297

4,813 67,222 -12,318
5,789 6,746 -16,651
6,031 7,005 -14,075
6,949 7,169 -15,208
1,875 2,046 -3 ,5 8 9
6,859 7,351 -18,840

1,079
995
1,289
2,256
2,165
1,899
1 ,965
1,203
1,994

297
383
453
402
568
440
462
315
433

1,789
1,647
1,684
1,237
1,690
1,571
896
1,653
1,515

11,948
I t ,968
14,158
13,092
12,431
12,738
13,575
12,612
13,721

1,519
1,468
1,412
1,367
1,447
1,334
1,518
1,624
1,704

2,716
2,607
2,521
2,637
2,672
2,859
2,957
2,996
2,820

16 1,787 -1,0 5 5
-873
479
759 " * - i 4 -1,601
321 1,625 -1 ,0 9 4
553
213 -1,071
548
4 -1 ,0 6 8
492 1,592 -1,035
531
15
-8 8 7
1,154
1 -1,2 2 1

1,819
900
-6 7 2
1,610

421
421
270
464

1,478
1,530
1,809
1,606

13,714
13,360
14,382
13,679

1,626
1,696
1,659
1,652

2,813
3,143
3,407
3,356

4,855 5,947 9,930
2,230 6,571 13,096
1,660 9,537 16,010
2,875 11,796 17,801
742 3,289 4,819
1,729 13,772 16,498

1 Collections of these receipts, totaling $2,427 million for fiscal year
1973, were included as part of nonwithheld income taxes prior to Feb.
1974.
2 Old-age, disability, and hospital insurance, and Railroad Retirement
accounts.
3 Supplementary medical insurance premiums and Federal employee
retirement contributions.
4 Deposits of earnings by F. R. Banks and other miscellaneous receipts.
5 Consists of interest received by trust funds, rents and royalties on the
Outer Continental Shelf, and Govt, contributions for employee retirement.
6 Contains retroactive payments of $2,617 million for fiscal 1972.
7 Estimates presented in Budget o f the U.S. Government, Fiscal Year

Educa­
tion,
training, Health
employ­ and
wel­
ment,
fare
and
social
serv.

121
570
567
420

1,627 -1,4 4 1
53
-841
16 -1 ,8 1 4
1,605 -1 ,4 5 2

1977. Figures for outlay categories exclude special allowances for con­
tingencies and civilian agency pay raises totaling $200 million for fiscal
year 1976, $175 million for the transition quarter (TQ), and $2,260 million
for fiscal year 1977, and therefore do not add to totals.
8 Effective in calendar year 1976, the fiscal year for the U.S. Govt, is
being changed from July 1-June 30 to Oct. 1-Sept. 30. The period July 1Sept. 30 of 1976, data for which are shown separately from fiscal year
1976 and fiscal year 1977 totals, will be a transition quarter.
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.

A34

U.S. GOVERNMENT SECURITIES □ JUNE 1976
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions of dollars)

Public issues (interest-bearing)

End of period

Total
gross
public
debt 1

Marketable
Total
Total

Certifi­
cates

Bills

Bonds 2

Con­
vert­
ible
bonds

Nonmarketable
Foreign Savings
bonds
Total 3
and
notes

Special
issues 5

1968—Dec.
1969—Dec.
1970—Dec.

358.0
368.2
389.2

296.0
295.2
309.1

236.8
235.9
247.7

75.0
80.6
87.9

76.5
85.4
101.2

85.3
69.9
58.6

2.5
2.4
2.4

56.7
56.9
59.1

4.3
3.8
5.7

52.3
52.2
52.5

59.1
71.0
78.1

1971—Dec..
1972—Dec.
1973—Dec.
1974—Dec.

424.1
449.3
469.9
492.7

336.7
351.4
360.7
373.4

262.0
269.5
270.2
282.9

97.5
103.9
107.8
119.7

114.0
121.5
124.6
129.8

50.6
44.1
37.8
33.4

2.3
2.3
2.3
2.3

72.3
79.5
88.2
88.2

16.8
20.6
26.0
22.8

54.9
58.1
60.8
63.8

85.7
95.9
107.1
118.2

1975—May
June
July.
Aug.
Sept.
O ct..
Nov.
Dec.

528.2
533.2
538.2
547.7
553.6
562.0
566.8
576.6

407.8
408.8
416.3
423.5
431.5
443.6
447.5
457.1

314.9
315.6
323.7
331.1
338.9
350.9
355.9
363.2

131.5
128.6
133.4
138.1
142.8
147.1
151.1
157.5

146.5
150.3
153.6
155.2
158.5
166.3
166.1
167.1

36.8
36.8
36.7
37.8
37.7
37.6
r38.7
38.6

2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3

90.6
90.9
90.4
90.1
90.3
90.5
89.3
91.7

23.5
23.2
22.2
21.6
21 .5
21.2
21.3
21.6

65.5
65.9
66.3
66.6
66.9
67.2
67.6
67.9

119.2
123.3
120.9
123.3
121 .1
117.4
116.7
118.5

1976—Jan..
Feb.,
Mar.
Apr.
May

584.4
593.9
600.5
602.0
610.7

463.8
473.7
480.7
482.4
484.4

369.3
378.8
385.3
386.4
388.0

159.6
162.1
163.1
161.8
161.8

171 .1
177.6
183.1
185.8
186.5

38.6
39.1
39.0
38.9
39.7

2.3
2.3
2.3
2.3
2.3

92.2
92.7
93.1
93.6
94.1

21.6
21.7
21.7
21 .6
21.5

68.2
68.6
69.0
69.4
69.8

118.1
119.2
118.5
118.6
123.7

1 Includes non-interest-bearing debt (of which $610 million on May 31,
1976, was not subject to statutory debt limitation).
2 Includes Treasury bonds and minor amounts of Panama Canal and
postal savings bonds.
3 Includes (not shown separately): depositary bonds, retirement plan
bonds, Rural Electrification Administration bonds, State and local govern­
ment bonds, and Treasury deposit funds.

4 Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency-series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
N o t e . — Based on Monthly Statement o f the Public Debt o f the United
States , published by U.S. Treasury. See also second paragraph in N o t e to
table below.

OWNERSHIP OF PUBLIC DEBT
(Par value, in billions of dollars)
Held b y -

Held by private investors

Total
gross
public
debt

U.S.
Govt.
agencies
and
trust
funds

F.R.
Banks

Total

1968—Dec................
1969—Dec................
1970—Dec................

358.0
368.2
389.2

76.6
89.0
97.1

52.9
57.2
62.1

1971—Dec................
1972—Dec................
1973—Dec................

424.1
449.3
469.9

106.0
116.9
129.6

End of
period

Individuals

Foreign
and
inter­
national 1

Other
misc.
inves­
tors 2

23.3
29.0
29.1

14.3
11.2
20.6

21.9
25.0
19.9

54.4
57.7
60.3

18.8
16.2
16.9

46.9
55.3
55.6

15.6
17.0
19.3

Com­
mercial
banks

Mutual
savings
banks

Insur­
ance
com­
panies

Other
corpo­
rations

State
and
local
govts.

228.5
222.0
229.9

66.0
56.8
62.7

3.8
3.1
3.1

8.4
7.6
7.4

14.2
10.4
7.3

24.9
27.2
27.8

51.9
51.8
52.1

70.2
69.9
78.5

247.9
262.5
261.7

65.3
67.7
60.3

3.1
3.4
2.9

7.0
6.6
6.4

11.4
9.8
10.9

25.4
28.9
29.2

Other
Savings
bonds securities

1974-Dec................

492.7

141.2

80.5

271.0

55.6

2.5

6.1

11.0

29.2

63.4

21.5

58.4

23.2

1975—Apr................
May...............
June..............
July...............
Aug................
Sept...............
Oct.................
Nov...............
Dec................

516.7
528.2
533.2
538.2
547.2
553.6
562.0
566.8
576.6

138.0
140.9
145.3
142.5
144.8
142.3
138.8
137.7
137.4

87.8
85.6
84.7
81.9
82.5
87.0
87.2
85.1
87.9

290.9
301.7
303.2
313.8
320.4
324.4
336.0
343.9
349.4

64.1
67.7
69.2
71.4
75.4
78.4
80.5
82.6
85.8

3.2
3.4
3.5
3.7
3.9
4.0
4.2
4.4
4.5

6.7
6.9
7.1
7.3
7.4
7.6
7.9
8.8
9.3

12.5
13.7
13.2
16.2
16.0
15.0
17.5
20.0
20.2

29.8
29.8
29.6
31.3
31.2
32.2
33.8
33.9
33.8

64.7
65.1
65.5
65.9
66.2
66.5
66.8
67.1
67.3

21.4
21.5
21.6
21.8
22.6
23.0
23.2
23.5
23.6

64.9
66.8
66.0
66.7
67.3
65.5
66.9
66.1
66.5

23.6
26.8
27.4
29.5
30.5
32.3
35.2
37.5
38.3

1976—Jan.................
Feb................
M ar.*............

584.4
593.9
600.5

139.3
139.7
139.1

89.8
89.0
89.8

355.3
365.1
371.7

87.0
88.0
92.7

4.7
4.9
5.1

9.9
10.0
10.4

21.2
23.2
23.0

34.6
36.4
37.8

67.7
68.0
68.4

23.6
24.5
24.6

68.3
69.6
68.1

38.3
40.3
41.4

1 Consists of investments of foreign and international accounts in
the United States.
2 Consists of savings and loan assns., nonprofit institutions, cor­
porate pensions trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
N o t e . — Reported data for F.R. Banks and U.S. Govt, agencies and
trust funds; Treasury estimates for other groups.




The debt and ownership concepts were altered beginning with the
Mar. 1969 B u l l e t i n . The new concepts (1) exclude guaranteed se­
curities and (2) remove from U.S. Govt, agencies and trust funds
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts. Beginning in July 1974, total gross public debt includes Federal
Financing Bank bills and excludes notes issued to the IMF ($825 million).

JUNE 1976 o U.S. GOVERNMENT SECURITIES

A35

OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
Within 1 year
Type of holder and date

All holders:
1973—Dec.
1974—Dec.
1975—Dec.
1976—Mar.
Apr.

1-5
years

5-10
years

10-20
years

Over
20 years

33,785
28,339
42,209
40,640
42,219

81,715
85,311
112,270
123,933
124,967

25,134
27,897
26,436
32,386
32,381

15,659
14,833
14,264
14,131
14,067

6,145
6,764
10,530
11,066
11,045

Total

31........................................................ 270,224
31........................................................ 282,891
31........................................................ 366,191
31........................................................ 385,296
30........................................................ 386,444

Total

Bills

Other

141,571
148,086
199,692
203,780
203,983

107,786
119,747
157,483
163,140
161,764

U.S. Govt, agencies and trust funds:
1973—Dec. 31................................................
1974—Dec. 31................................................
1975—Dec. 31................................................
1976—Mar. 31................................................
Apr. 30................................................

20,962
21,391
19,347
19,110
19,110

2,220
2,400
2,769
3,018
3,110

631
588
207
457
526

1,589
1,812
2,562
2,561
2,584

7,714
7,823
7,058
6,674
6,661

4,389
4,721
3,283
3,082
3,039

5,019
4,670
4,233
4,246
4,233

1,620
1,777
2,053
2,089
2,068

Federal Reserve Banks:
1973—Dec. 31................................................
1974—Dec. 31................................................
1975—Dec. 31................................................
1976—Mar. 31................................................
Apr. 30................................................

78,516
80,501
87,934
89,753
91,814

46,189
45,388
46,845
46,504
47,433

36,928
36,990
38,018
38,330
38,793

9,261
8,399
8,827
8,174
8,640

23,062
23,282
30,518
r31,045
32,108

7,504
9,664
6,463
7,766
7,745

1,577
1,453
1,507
1,534
1,592

184
713
2,601
2,904
2,935

Held by private investors:
1973—Dec. 31................................................
1974—Dec. 31................................................
1975—Dec. 31................................................
1976—Mar. 31................................................
Apr. 30................................................

170,746
180,999
255,860
276,433
275,520

93,162
100,298
150,078
154,258
153,440

70,227
82,168
119,258
124,353
122,445

22,935
18,130
30,820
29,905
30,995

50,939
54,206
74,694
86,214
86,198

13,241
13,512
16,690
21,538
21,597

9,063
8,710
8,524
8,351
8,242

4,341
4,274
5,876
6,073
6,042

Commercial banks:
1973—Dec. 31.........................................
1974—Dec. 31.........................................
1975—Dec. 31........................................
1976—Mar. 31........................................
Apr. 30........................................

45,737
42,755
64,398
69,742
69,329

17,499
14,873
29,875
29,290
28,757

7,901
6,952
17,481
17,841
16,584

9,598
7,921
12,394
11,449
12,173

22,878
22,717
29,629
35,362
35,538

4,022
4,151
4,071
4,337
4,304

1,065
733
552
517
507

272
280
271
236
223

Mutual savings banks:
1973—Dec. 31........................................
1974—Dec. 31.........................................
1975—Dec. 31........................................
1976—Mar. 31.........................................
Apr. 30........................................

1,955
1,477
3,300
3,895
3,903

562
399
983
1,074
1,046

222
207
554
585
487

340
192
429
489
559

750
614
1,524
1,924
2,015

211
174
448
562
550

300
202
232
220
214

131
88
112
115
78

Insurance companies:
1973—Dec. 31.........................................
1974—Dec. 31.........................................
1975—Dec. 31.........................................
1976—Mar. 31........................................
Apr. 30........................................

4,956
4,741
7,565
8,577
8,498

779
722
2,024
2,055
1,840

312
414
1,513
1,546
1,337

467
308
511
509
503

1,073
1,061
2,359
3,100
3,123

1,278
1,310
1,592
1,854
1,928

1,301
1,297
1,154
1,150
1,152

523
351
436
418
455

4,905
4,246
9,365
11,275
11,933

3,295
2,623
7,105
9,168
9,507

1,695
1,859
5,829
7,890
8,235

1,600
764
1,276
1,278
1,272

1,281
1,423
1,967
1,865
2,239

260
115
175
120
82

54
26
61
56
55

15
59
57
66
51

Savings and loan associations:
1973 Dec. 31.........................................
1974—Dec. 31.........................................
1975—Dec. 31.........................................
1976—Mar. 31.........................................
Apr. 30........................................

2,103
1,663
2,793
4,180
4,414

576
350
914
1,781
1,918

121
87
518
1,265
1,386

455
263
396
516
532

1,011
835
1,558
2,120
2,219

320
282
216
175
173

151
173
82
88
85

45
23
22
16
20

State and local governments:
1973 Dec. 31.........................................
1974—Dec. 31.........................................
1975—Dec. 31.........................................
1976—Mar. 31........................................
Apr. 30........................................

9,829
7,864
9,285
11,334
11,294

5,845
4,121
5,288
6,852
6,877

4,483
3,319
4,566
5,871
5,891

1,362
802
722
981
986

1,870
1,796
1,761
2,040
2,147

778
815
782
886
836

1,003
800
896
832
815

332
332
558
724
619

101,261
118,253
159,154
167,431
166,148

64,606
77,210
103,889
104,038
103,495

55,493
69,330
88,797
89,354
88,525

9,113
7,880
15,092
14,684
14,970

22,076
25,760
35,894
39,803
38,917

6,372
6,664
9,405
13,604
13,725

5,189
5,479
5,546
5,488
5,415

3,023
3,141
4,420
4,498
4,595

Nonfinancial corporations:
1973 Dec 31.........................................
1974 Dec. 31.........................................
1975—Dec. 31........................................
1976—Mar. 31........................................

All others:
1973—Dec.
1974—Dec.
1975—Dec.
1976—Mar.
Apr.

31.........................................
31.........................................
31........................................
31........................................
30........................................

N o t e . — Direct public issues only. Based on Treasury Survey of
Ownership.
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting: (1) 5,522 commercial banks, 470 mutual savings




banks, and 729 insurance companies combined, each about 90 per cent;
(2) 454 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 501 State and local govts., about 40 per cent,
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately,

A36

U.S. GOVERNMENT SECURITIES □ JUNE 1976
DAILY-AVERAGE DEALER TRANSACTIONS
(Par value, in millions of dollars)
U.S. Government securities
By maturity

By type of customer

Period
Total

Within
1 year

1-5
years

5-10
years

Over
10 years

U.S. Govt, U.S. Govt,
securities securities
dealers
brokers

Com­
mercial
banks

All
otheri

U.S. Govt.
agency
securities

1975—Apr...............................
M ay.............................
June.............................
July..............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec...............................

5,197
6,419
5,732
4,675
5,183
5,566
8,714
7,594
7,586

3,682
4,181
3,745
3,301
3,375
4,032
5,929
5,519
5,919

1,096
1,615
1,484
1,131
1,340
1,315
2,332
1,353
1,270

285
466
372
172
333
128
309
534
278

134
158
132
71
134
91
144
189
120

704
981
801
669
742
931
1,271
1,070
1,190

1,450
1,917
1,689
1,294
1,405
1,405
2,675
2,176
2,217

1,242
1,454
1,336
1,100
1,185
1,198
1,839
1,875
1,977

1,801
2,067
1,906
1,613
1,851
2,033
2,929
2,474
2,202

904
1,049
1,217
778
845
787
1,250
1,217
1,059

1976—Jan................................
Feb...............................
Mar..............................
Apr...............................

9,509
8,329
9,044
10,293

7,049
5,863
6,763
7,667

1,765
1,553
1,807
2,186

569
755
358
306

126
158
116
134

1,265
951
1,308
1,341

3,118
2,389
2,777
3,154

2,192
2,196
2,276
2,426

'2,935
2,793
2,683
3,372

1,417
1,163
1,185
1,665

Week ending—
1976—Apr.

7.......................
14.......................
21.......................
28.......................

10,520
11,736
8,814
9,986

7,914
8,379
6,728
7,647

2,196
2,744
1,738
1,984

271
458
256
224

138
156
93
131

1,297
1,640
1,396
'1,218

3,334
3,462
2,200
'3,377

2,476
2,957
2,184
'2,114

3,413
3,677
3,033
'3,277

1,845
1,984
1,831
1,271

May

5 .......................
12.......................
19.......................
26.......................

9,403
9,474
7,903
8,276

7,358
5,793
5,660
5,643

1,630
2,035
1,203
1,881

266
1,205
744
556

149
441
295
197

1,112
1,008
827
910

2,939
3,203
2,697
2,983

2,229
2,502
2,015
1,972

3,124
2,762
2,364
2,412

969
981
1 ,524
1,098

1 Since Jan. 1972 has included transactions of dealers and brokers in
securities other than U.S. Govt.
N o t e . —The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank of New York.

They do not include allotments of, and exchanges for, new U.S. Govt,
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the number of
trading days in the period.

DAILY-AVERAGE DEALER POSITIONS

DAILY-AVERAGE DEALER FINANCING

(Par value, in millions of dollars)

( In m illio n s o f d o lla r s )

U.S. Government securities, by maturity
Period

Within
All
1
maturi­
ties
year

1-5
years

5-10
years

Over
10
years

U.S.
Govt.
agency
securi­
ties

Commerc:ial banks
All
sources

Period

Corpora­
tions 1

All
other

1,326
1,567
1,979
1,435
1,148
1,640
1,792
1,393
1,304

583
452
737
929
1,120
972
817
991
1,086

2,132
2,953
3,012
2,865
2,890
2,804
2,673
2,873
2,716

1,757
1,705
1,865
1,966

1,337
850
1,138
1,734

1,147
1,017
1,225
1,126

2,526
3,128
2,947
2,761

New
York
City

Else­
where

5,696
6,656
7,682
6,594
6,167
6,576
6,940
7,215
7,107

1,655
1,684
1,955
1,365
1,009
1,160
1,658
1,958
2,001

6,766
6,700
7,175
7,587

1975—Apr.................
May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec................

4,453
6,332
6,768
5,736
5,501
5,718
7,322
6,752
6,061

3,123
4,917
5,923
4,978
4,491
5,214
6,019
5,011
5,274

1,036
1,094
748
775
609
410
1,091
640
322

218
248
100
47
262
56
111
594
218

77
73
-3
-6 4
138
39
102
506
247

937
896
790
626
610
529
491
953
982

1975-

1976—Jan.................
Feb.................
Mar................
Apr.................

6,305
6,263
6,884
6,733

5,287
5,477
6,360
6,328

449
381
286
190

398
224
122
131

170
183
116
84

694
602
537
508

1976-

3
10
17
24
31

5,282
7,079
6,666
7,096
7,446

4,899
6,414
6,581
6,572
6,515

138
454
-115
286
611

102
94
102
128
186

144
117
98
111
133

476
443
463
464
812

1976--Mar.

3. ..
1 0 ...
1 7 ...
2 4 ...
3 1 ...

6,059
7,030
7,489
7,175
7,666

1,503
2,223
2,340
1,681
1,501

627
870
1,266
1,107
1,570

1,181
1,273
1,243
1,238
1,171

2,747
2,665
2,640
3,149
3,425

7 ........
14
21
2 8 ........

7,762
8,109
7,159
4,803

7,328
7,554
6,731
4,578

194
257
202
96

136
174
151
79

104
124
74
50

572
499
520
469

Apr.

7. . .
14. . .
2 1 ...
28. ..

7,929
8,603
8,309
6,016

2,249
2,146
2,108
1,579

1,790
2,483
1,629
1,257

1,244
1,625
894
837

2,646
2,348
3,678
2,343

Apr.

N o t e . —The figures include all securities sold by dealers under repur­
chase contracts regardless of the maturity date of the contract, unless the
contract is matched by a reverse repurchase (resale) agreement or delayed
delivery sale with the same maturity and involving the same amount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders of the securities rather than
dealer trading positions.
Average of daily figures based on number of trading days in the period.




Nov.

Feb

Week ending—

Week ending—
1976—Mar.

May .
June.
July.,
Aug.,

1 All business corporations, except commercial banks and insurance
companies.
N o t e . —Averages of daily figures based on the number of calendar days
in the period. Both bank and nonbank dealers are included. See also
to the table on the left.

N o te

JUNE 1976 o FEDERALLY SPONSORED CREDIT AGENCIES

A37

MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
End of
period

Assets

Federal National
Mortgage Assn.
(secondary market
operations)

Liabilities and capital

Ad­
vances
to
mem­
bers

Invest­
ments

Cash
and
de­
posits

1970.............
1971.............
1972.............
1973.............
1974.............

10,614
7,936
7,979
15,147
21,804

3,864
2,520
2,225
3,537
3,094

105
142
129
157
144

10,183
7,139
6,971
15,362
21,878

2,332
1,789
1,548
1,745
2,484

1,607
1,618
1,756
2,122
2,624

1975—A pr...
M ay..
June..
July. .
Aug...
Sept...
O ct...
Nov. .
Dec...

17,528
17,145
16,803
16,685
16,945
17,482
17,578
17,606
17,845

6,836
5,745
6,259
6,174
4,680
4,247
4,368
4,439
4,376

98
98
134
119
89
114
70
87
109

20,738
19,463
19,396
19,446
18,736
18,720
18,766
18,874
18,863

2,651
2,708
2,831
2,436
2,281
2,275
2,291
2,527
2,701

1976—Ja n .. .
Feb...
Mar. .
Apr...

17,106
16,380
15,757
15,336

5,549
5,286
6,063
6,394

97
69
110
113

18,850
17,738
17,714
17,713

2,971
3,085
3,182
2,990

Bonds
and
notes

Mem­
ber
de­
posits

Banks
for
cooperatives

Deben­ Loans
tures
to
and
cooper­
notes
atives
(L)
(A)

Bonds

15,502
17,791
19,791
24,175
29,709

15,206
17,701
19,238
23,001
28,201

2.660
2*656
2,653
2,656
2,660
2,679
2,685
2,690
2,705

29,931
29,977
30,136
30,453
30,881
31,157
31,466
31,647
31,916

2,802
2,829
2,827
2,829

31,866
31,704
31,564
31,468

Capital
Stock

Mort­
gage
loans
(A)

N o t e . —Data from Federal Home Loan Bank Board, Federal National
Mortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts of all agencies, except for stock of FHLB’s.
Bonds, debentures, and notes are valued at par. They include only publicly

Federal
intermediate
credit banks

Federal
land
banks

Bonds

(L)

Loans
and
dis­
counts
(A)

2,030
2,076
2,298
2,577
3,575

1,755
1,801
1,944
2,670
3,561

28,257
27,962
28,237
28,419
28,718
28,933
29,373
29,319
29,963

3,650
3,499
3,371
3,520
3,738
3,847
4,087
4,041
3,979

29,809
29,758
30,021
30,148

4,356
4,546
4,656
4,590

Bonds

(L)

Mort­
gage
loans
(A)

4,974
5,669
6,094
7,198
8,848

4,799
5,503
5,804
6,861
8,400

7,186
7,917
9,107
11,071
13,643

6,395
7,063
8,012
9,838
12,427

3,329
2,982
2,948
2,914
3,004
3,109
3,453
3,664
3,643

9,520
9,763
10,031
10,163
10,176
10,100
9,933
8,784
9,947

9,061
9,231
9,357
9,556
9,715
9,657
9,505
9,319
9,211

14,917
15,180
15,437
15,654
15,851
16,044
16,247
16,380
16,564

13,571
13,571
13,961
14,351
14,351
14,351
14,774
14,774
14,773

3,793
3,878
3,918
3,921

9,944
10,013
10,272
10,762

9,201
9,254
9,812
9,877

16,746
16,930
17,264
17,514

15,243
15,120
15,120
15,834

(L)

offered securities (excluding, for FHLB’s, bonds held within the FHLB
System) are not guaranteed by the U.S. Govt. Loans are gross of valuation
reserves and represent cost for FNMA and unpaid principal for other
agencies.

NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions of dollars)
All issues (new capital and refunding)
Type of issue

Period
Total

197
197
197
197
197

1
2
3
4
5

24,963
23,653
23,969
24,315
30,607

Gener­
al
obli­
gations

Reve­
nue

15,220 8,681
13,305 9,332
12,257 10,632
13,563 10,212
16,020 14,511

U.S.
H AA1 Govt.
loans
1,000
959
1,022
461

Issues for new capital

Type of issuer

State

Special
district
and
Other2
stat.
auth.

Total
amount
deliv­
ered3

Use of proceeds

Total

Edu­ Roads
and
cation bridges

Util­
ities4

Other
Hous­ Veter­
ans’ purings
aid

5,999 8,714
4,991 9,496
4,212 9,505
4,784 8,638
7,438 12,441

10,246
9,165
10,249
10,817
10,660

24.495
19,959
22,397
23,508
29.495

5,278
4,981
4,311
4,730
4,689

2,642
1,689
1,458
768
1,277

5,214
4,638
5,654
5,634
7,209

2,068
1,910
2,639
1,064
647

9,293
6,741
8,335
11,312
15,673

1975—M ar..
Apr...
May..
June.
July..
Aug..
Sept..
O c t...
Nov..
Dec...

2,137
2,413
2,905
3,066
3,586
2,786
2,171
2,337
2,385
2,062

1,284
1,501
1,885
1,772
1,371
1,058
907
1,120
1,040
995

851
905
1,015
1,292
2.209
1,725
1,252
1,203
1,341
1,057

376
368
811
938
1,577
376
357
482
470
434

717
880
1,197
1,137
1,063
1,665
1,185
979
1,244
1,043

1,048
1,161
889
989
941
747
614
855
667
576

2,083
2,316
2,784
2,840
3,554
2,561
2,123
2,241
2,318
1,990

471
405
419
430
400
379
279
212
219
287

94
61
211
164
123
55
134
60
88
29

474
734
559
821
879
626
447
487
618
495

35
38
25
28
37
67
48
44
28
20

1,009
1,078
1,570
1,397
2,115
1,434
1,215
1,438
1,365
1,159

1976—Jan.r .
Feb.r.
M ar.r
Apr...

2,355
2,694
3,328
2,365

1,135
1,304
2,159
1,191

1.209
1,375
1,162
1,163

639
446
1,254
455

1,070
1,449
816
1,181

637
782
1,253
718

2,270
2,594
3,163
2,252

432
335
428
341

95
135
215
25

600
572
707
665

88
130
692
358

1,055
1,422
1,121
863

1 Only bonds sold pursuant to 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
2 Municipalities, counties, townships, school districts.
3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser
and payment to issuer, which occurs after date of sale.




4 Water, sewer, and other utilities.
5 Includes urban redevelopment loans.
N o t e . — Security Industries Assn. data; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.

A38

SECURITY ISSUES

□ JUNE 1976
TOTAL NEW ISSUES
(In millions o f dollars)

Gross proceeds, all issues i
Noncorporate

Corporate

Period
Total

Bonds

U.S.
Govt.2

U.S.
Govt.
agency3

State
and local
(U.S.)4

Other*

17,080
19,057

12,825
23,883

23,070
22,700

1,589
1,385

Total

Stock

Total

Publicly
offered

Privately
placed

Preferred

Common

40,228
32,025
38,311
53,714

26,132
21,049
32,066
42,830

17,425
13,244
25,903
32,603

8,706
7,802
6,160
10,227

3,370
3,337
2,253
3,458

10,725
7,642
3,994
7,426

1975—Jan...
F eb ..,
M ar..
Apr..
May.
June.
Ju ly ..
Aug..
Sept..
Oct...
N ov..
Dec..,

5,365
4,530
5,378
4,294
5,798
5,618
4,390
2,398
2,845
4,710
4,087
4,279

4,792
3,908
4.481
3,194
4,298
4,613
3,733
1,835
2,009
3,163
3,304
3.482

3.657
3,201
3,971
2,771
3,796
3,943
2.658
1,356
1,414
2,389
1,666
1,761

1,135
707
510
423
502
670
1,075
479
595
774
1,638
1,721

235
173
253
349
346
230
198
129
308
332
440
462

338
449
644
751
1,154
775
459
434
528
1,215
343
335

1976—Jan..

3,216

2,646

2,189

457

139

431

1972'.
1973 r.
1974
1975 r.

84,792
99,050

Gross proceeds, major groups of corporate issuers
Period

Manufacturing

Commercial and
miscellaneous

Bonds

Stocks

Bonds

Stocks

Bonds

Transportation
Stocks

Public utility

Communication

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

6,349
5,578
8,873
9,652

4,966
4,691
3,964
6,235

3,709
3,523
3,710
3,464

1,126
1,348
217
1,002

7,728
5,344
6,218
6,420

3,242
2,745
562
490

5
1

931
539
614
156
379
603
1,081
255
306
443
443
679

32
34
9
10
47
22
68
105
23
57
83

440

9

1972 *•........
1973 *■........
1974 *■........
1975r ........

4,560
4,199
9,867
17,098

1,833
638
544
1,670

2,526
1,318
1,845
2,750

2,786
1,532
940
1,489

1,258
1,084
1,550
3,447

1975—Ja n ..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
O ct.,
Nov.
Dec.

1,901
1,631
2,368
1,498
2,266
2,195
1,116
610
528
813
886
1,263

3
44
111
233
384
123
64
101
106
142
229
130

179
65
271
294
242
384
229
141
54
337
81
470

58
60
74
211
141
194
231
70
37
152
68
193

84
75
83
97
415
231
338
17
151
626
1,000
330

764
1,471
828
794
845
838
715
719
720
571
848
536

507
486
679
586
704
640
324
305
541
676
420
363

933
128
317
354
153
362
254
93
249
373
45
204

1976—Jan ..

968

39

284

87

290

649

435

15

1 Gross proceeds are derived by multiplying principal amounts or
number of units by offering price.
2 Includes guaranteed issues.
3 Issues not guaranteed.
4 See N o t e to table at bottom of preceding page.




148
26
22
1

Real estate
and financial

61
260
16
19
48
555
10
27

5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organ­
izations.
N o t e . —Securities and Exchange Commission estimates of new issues
maturing in more than 1 year sold for cash in the United States.

JUNE 1976 □ SECURITY ISSUES

A39

NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions o f dollars)

Derivation of change, all issuers1
Period

All securities

1972.......................
1973.......................
1974.......................
1975.......................

Common and preferred stocks

Bonds and notes

New issues

Retirements

Net change

New issues

Retirements

Net change

New issues

Retirements

Net change

42,306
33,559
39,334
53,255

10,224
11,804
9,935
10,991

32,082
21,754
29,399
42,263

27,065
21,501
31,554
40,468

8,003
8,810
6,255
8,583

19,062
12,691
25,098
31,886

15,242
12,057
7,980
12,787

2,222
2,993
3,678
2,408

13,018
9,064
4,302
10,377

1974—IV...............

12,272

2,871

9,401

10,086

2,004

8,082

2,186

866

1,319

1975—1.................
I I ................
I l l ..............
IV...............

15,211
15,602
9,079
13,363

2,088
3,211
2,576
3,116

13,123
12,390
6,503
10,247

12,759
11,460
6,654
9,595

1,587
2,336
2,111
2,549

11,172
9,124
4,543
7,047

2,452
4,142
2,425
3,768

501
875
465
567

1,951
3,266
1,960
3,200

Type of issues

197
197
197
197

2
3
4
5

I ..

Transpor­
tation 3

Public
utility

Real estate
and financial i

Communi­
cation

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

1,995
801
7,404
13,219

2,094
658
17
1,607

1,409
-1 0 9
1,116
1,605

2,471
1,411
-1 3 5
1,137

711
1,044
341
2,165

254
-9 3
-2 0
65

5,137
4,265
7,308
7,236

4,844
4,509
3,834
6,015

3,343
3,165
3,499
2,980

1,260
1,399
398
1,084

7,045
3,523
5,428
4,682

2,096
1,181
207
468

3,098

126

240

-4 7

342

9

2,079

1,107

628

107

1,695

17

5,134
4,574
1,442
2,069

262
500
412
433

373
483
221
528

77
490
108
462

1
429
147
1,588

1
7
53
4

2,653
1,977
1,395
1,211

1,569
1,866
1,043
1,537

1,269
810
472
429

24
359
97
604

1,742
852
866
1,222

18
43
247
160

1974—IV,
1975—
II.
Ill
IV,

Commercial
and other 2

Manu­
facturing

Period

1 Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
N o t e . —Securities and Exchange Commission estimates of cash trans­
actions only. As contrasted with data shown on preceding page, new issues

exclude foreign sales and include sales of securities held by affiliated com­
panies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions of bonds into stocks. Retirements
are defined in the same way and also include securities retired with in­
ternal funds or with proceeds of issues for that purpose.

OPEN-END INVESTMENT COMPANIES
(In millions of dollars)

Year

Assets (market value
at end of period)

Sales and redemption
of own shares
Sales 1 Redemp­
tions

Net
sales

Total 2

Month

Other
Cash
position 3

Sales i

1963..............
1964..............
1965..............

2,460
3,404
4,359

1,504
1,875
1,962

952 25,214
1,528 29,116
2,395 35,220

1,341
1,329
1,803

1966..............
1967..............
1968..............

4,671
4,670
6,820

2,005
2,745
3,841

2,665 34,829
1,927 44,701
2,979 52,677

2,971
2,566
3,187

1969..............
1970..............
1971..............

6,717
4,624
5,145

3,661
2,987
4,751

3,056 48,291
1,637 47,618
394 55,045

3,846
3,649
3,038

1972..............
1973..............
1974..............

4,892
4,358
5,346

6,563
5,651
3,937

-1,671 59,831
-1,261 46,518
1,409 35,777

3,035
4,002
5,637

23,873 1975-—Apr...
M ay..
27,787
Ju n e ..
33,417
July...
31,858
A ug...
42,135
Sept...
49,490
O ct.. .
Nov...
Dec...
44,445
43,969
52,007 1976-- J a n ...
F eb...
M ar.r.
56,796
Apr...
42,516
30,140

1975...............

10,057

9,571

486 42,179

3,748

38,431

1 Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment of investment in­
come dividends; excludes reinvestment of realized capital gains dividends.
2 Market value at end of period less current liabilities.
3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.
4 Beginning Jan. 1976, sales and redemption figures exclude money
market funds.




Sales and redemption
of own shares 4
Redemp­
tions

Assets (market value
at end of period)

Net
sales

Total 2

Cash
position :

808
677
703
813
753
760
914
786
1,040

791
735
811
1,052
788
874
995
911
1,093

17
-5 8
-1 0 8
-239
-3 5
-1 1 4
-8 1
-125
-5 3

42,353
43,832
45,538
42,896
41,672
40,234
41,860
42,460
42,179

3,841
3,879
3,640
3,591
3,660
3,664
3,601
3,733
3,748

38,512
39,953
41,898
39,305
38,012
36,570
38,259
38,727
38,431

411
262
326
305

538
577
677
620

-4 7
-315
-351
-3 1 5

46,529
46,540
46,866
45,956

3,287
3,084
2,881
2,683

43,242
43,546
43,985
42,273

N o t e . —Investment Company Institute data based on reports of mem­
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.

A40

BUSINESS FINANCE □ JUNE 1976
SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS
(In millions of dollars)
Industry

1972

1973

1973

1974
III

1974
IV

I

II

1975
III

IV

I

II

III

Total (170 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

371,946 442,254 563,950 108,370 120,985 126,797 142,974 144,936 149,243 138,245 145,753 147,853
376,604 448,795 572,368 109,984 123,108 128,695 145,125 147,134 151,409 140,343 147,662 149,687
41,164 53,833 67,650 12,411 14,742 16,588 18,191 17,837 15,033 12,873 14,812 15,425
21,753 28,772 32,502
6,762
7,750
7,739
9,280
8,420
7,068
5,538
6,678
7,048
21,233 28,804 32,705
6,732
7,930
7,626
9,210
8,487
7,383
5,662
6,566
7,031
10,538 11,513 12,302
2,767
3,393
2,906
2,928
3,076
3,390
3,129
3,031
3,089

Nondurable goods industries
(86 corps.):2
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

176,329 210,118 308,699
178,915 213,904 314,256
21,799 30,200 46,380
11,154 15,538 20,536
10,859 15,421 20,433
5,780
6,103
6,872

53,168
54,098
7,610
4,018
3,957
1,527

59,207
60,357
8,988
4,463
4,517
1,633

68,767
70,049
11,880
5,056
4,957
1,625

77,090
78,552
11,972
5,728
5,677
1,645

80,425
81,905
12,595
5,464
5,389
1,722

82,417
83,746
9,930
4,291
4,411
1,882

77,224
78,548
9,357
3,575
3,567
1,816

78,537
79,817
9,942
3,890
3,870
1,783

82,228
83,462
10,886
4,424
4,423
1,793

Durable goods industries (84
corps.):3
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

195,618 232,136 255,251
197,690 234,891 258,112
19,365 23,633 21,271
10,599 13,234 11,966
10,374 13,383 12,272
4,758
5,410
5,430

55,202
55,886
4,801
2,744
2,775
1,240

61,778
62,751
5,754
3,287
3,413
1,760

58,029
58,646
4,708
2,683
2,669
1,281

65,884
66,573
6,219
3,552
3,533
1,283

64,511
65,229
5,242
2,956
3,098
1,354

66,826
67,663
5,102
2,776
2,973
1,508

61,021
61,795
3,516
1,963
2,095
1,313

67,216
67,845
4,870
2,788
2,696
1,248

65,625
66,225
4,539
2,624
2,608
1,296

Selected industries:
Food and kindred products
(28 corps.):
Sales......................................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

37,624
38,091
3,573
1,845
1,805
893

42,628
43,198
3,957
2,063
2,074
935

52,753
53,728
4,603
2,298
2,328
1,010

11,014
11,201
1,031
546
546
236

11,871
11,938
1,067
543
573
240

11,885
12,110
1,046
529
533
243

12,729
12,996
1,190
607
610
248

13,663
13,939
1,289
645
646
253

14,476
14,683
1,077
517
540
267

13,490
13,708
1,066
502
526
268

14,117
14,356
1,190
607
615
271

14,600
14,844
1,385
719
745
274

Chemical and allied products
(22 corps.):
Sales......................................
Total revenue........................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

36,638
37,053
4,853
2,672
2,671
1,395

43,208
43,784
6,266
3,504
3,469
1,496

55,084
55,677
8,264
4,875
4,745
1,646

10,828
10,968
1,599
901
871
374

11,534
11,704
1,572
883
880
417

12,507
12,667
1,856
1,044
1,031
383

13,892
14,066
2,293
1,247
1,245
405

14,606
14,778
2,194
1,223
1,180
422

14,078
14,165
1,920
1,362
1,289
437

13,618
13,761
1,641
925
927
431

14,329
14,498
1,622
929
937
425

14,660
14,794
1,858
1,034
1,028
429

Petroleum refining (15 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

74,662
76,133
11,461
5,562
5,325
2,992

93,505 165,150
95,722 168,680
17,494 30,659
8,550 11,775
8,505 11,747
3,147
3,635

23,586
23,988
4,371
2,230
2,192
789

27,752
28,584
5,724
2,662
2,688
832

36,103
36,913
8,296
3,098
3,011
864

41,362
42,261
7,564
3,349
3,304
853

42,747
43,659
8,339
3,181
3,132
899

44,938
45,847
6,458
2,147
2,299
1,019

41,988
42,851
6,227
1,905
1,871
966

41,342
42,100
6,612
2,078
2,040
937

43,873
44,633
6,961
2,300
2,268
939

34,359
34,797
1,969
1,195
1,109
653

42,400
43,104
3,221
1,966
2,039
789

54,045
55,049
5,580
3,199
3,485
965

10,602
10,764
799
480
496
184

11,379
11,715
919
561
608
227

11,888
12,045
973
589
607
221

13,976
14,171
1,586
927
942
209

14,285
14,504
1,791
1,028
1,137
238

13,895
14,328
1,229
655
799
297

12,482
12,782
1,015
631
639
273

12,393
12,603
711
478
485
227

12,274
12,479
457
366
381
223

Machinery (27 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends.............................

55,615
56,348
6,358
3,522
3,388
1,497

65,041
65,925
7,669
4,236
4,208
1,606

73,452
74,284
7,643
4,213
4,168
1,839

16,306
16,519
1,936
1,069
1,070
407

17,871
18,168
2,149
1,200
1,188
410

16,830
17,012
1,829
1,006
996
441

18,836
19,023
2,074
1,149
1,137
441

18,853
19,075
1,943
1,074
1,096
r476

18,935
19,174
1,797
985
939
481

18,245
18,464
1,727
971
975
483

19,881
20,104
2,089
1,178
1,173
485

19,764
19,956
2,219
1,224
1,231
519

Motor vehicles and equipment
(9 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........
Dividends..............................

70,653
71,139
6,955
3,626
3,640
1,762

83,016
83,671
7,429
3,992
4,078
2,063

80,386
80,882
2,919
1,686
1,742
1,538

17,959
18,142
729
431
450
404

21,186
21,362
1,280
709
763
817

18,467
18,597
636
369
361
384

20,979
21,146
1,115
657
648
382

19,443
19,593
231
133
147
386

21,497
21,545
938
527
586
385

18,863
19,011
-9 8
-127
-1 2
294

22,275
22,341
854
451
455
276

21,005
21,083
590
328
280
274

Primary metals and products
(23 corps.):
Sales......................................
Total revenue.......................
Profits before taxes..............
Profits after taxes.................
Memo: PAT unadj.1........

1 Profits after taxes unadjusted are as reported by the individual com­
panies. These data are not adjusted to eliminate differences in accounting
treatments of special charges, credits, and other nonoperating items.
2 Includes 21 corporations in groups not shown separately.
3 Includes 25 corporations in groups not shown separately.
N ote—Data are obtained from published reports of companies and
reports made to the Securities and Exchange Commission. Sales are net




of returns, allowances, and discounts, and exclude excise taxes paid di­
rectly by the company. Total revenue data include, in addition to sales,
income from nonmanufacturing operations and nonoperating income.
Profits are before dividend payments and have been adjusted to exclude
special charges and credits to surplus reserves and extraordinary items not
related primarily to the current reporting period. Income taxes (not
shown) include Federal, State and local government, and foreign.
Previous series last published in June 1972 B u l l e t i n , p. A-50.

JUNE 1976 □ BUSINESS FINANCE

A41

CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions o f dollars)

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

1968.
1969.
1970,

85.6
83.5
71.5

39.3
39.7
34.5

46.2
43.8
37.0

21.9
22.6
22.9

24.2
21.2
14.1

1971,
1972
1973
1974
1975.

82.0
96.2
117.0
132.1
116.8

37.7
41.4
48.2
52.6
45.6

44.3
54.6
68.8
79.5
71.2

23.0
24.6
27.8
31.1
32.8

21.3
30.0
40.9
48.4
38.4

Year

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

1974—1..
II.
Ill
IV.

128.3
129.6
146.7
123.9

49.4
52.6
59.3
49.2

78.9
77.1
87.4
74.7

30.0
30.9
31.7
31.7

48.9
46.2
55.7
43.0

1975—1..
II.
Ill
IV.

97.1
108.2
129.5
132.4

37.5
41.6
50.7
52.5

59.6
66.6
r78.8
79.9

32.1
32.6
33.5
33.1

27.5
34.0
45.3
46.8

1976—1*.

140.8

56.5

84.3

33.3

51.0

Quarter

N o t e . — Dept, of Commerce estimates. Quarterly data are at seasonally
adjusted annual rates.

CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions of dollars)
Current assets

End of period

Net
working
capital

Total

Cash

U.S.
Govt.
securi­
ties

Current liabilities

Notes and accts.
receivable
U.S.
Govt, i

Other

Inven­
tories

Other

Total

Notes and accts.
Accrued
payable
Federal
income
taxes
U.S.
Govt.1 Other

Other

197 0
197 1
197 2

187.4
203.6
221.3

492.3
529.6
573.5

50.2
53.3
57.5

7.7
11.0
9.3

4.2
3.5
3.4

201.9
217.6
240.0

193.3
200.4
215.2

35.0
43.8
48.1

304.9
326.0
352.2

6.6
4.9
4.0

204.7
215.6
230.4

10.0
13.1
15.1

83.6
92.4
102.6

1973—III
IV

239.5
242.3

625.3
643.2

58.9
61.6

9.7
11.0

3.0
3.5

264.4
266.1

238.0
246.7

51.3
54.4

385.8
401.0

4.4
4.3

250.2
261.6

16.5
18.1

114.7
117.0

1974—1..
II.
III
IV

250.1
253.9
259.5
261.5

666.2
685.4
708.6
712.2

59.4
58.8
60.3
62.7

12.1
10.7
11.0
11.7

3.2
3.4
3.5
3.5

276.2
289.8
295.5
289.7

258.4
269.2
282.1
288.0

56.9
53.5
56.1
56.6

416.1
431.5
449.1
450.6

4.5
4.7
5.1
5.2

266.5
278.5
287.0
287.5

20.6
19.0
22.7
23.2

124.5
129.1
134.3
134.8

1975—1..
II.
III
IV

260.4
269.0
271.8
274.1

698.4
703.2
716.5
731.6

60.6
63.7
65.6
68.1

12.1
12.7
14.3
19.4

3.2
3.3
3.3
3.6

281.9
284.8
294.7
294.6

285.2
281.4
279.6
285.8

55.4
57.3
59.0
60.0

438.0
434.2
444.7
457.5

5.3
5.8
6.2
6.4

271.2
270.1
273.4
281.6

21.8
17.7
19.4
20.7

139.8
140.6
145.6
148.8

1 Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations’ books.

N o t e . —Securities

and Exchange Commission estimates.

BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions of dollars)
Manufacturing
Period

Total
Durable

Non­
durable

Public utilities

Transportation
Mining

Rail­
road

Air

Other

Commu­
nications
Electric andGas
other

Other1

Total
(S.A.
A.R.)

1971.......................
1972.......................
1973.......................
1974....................

81.21
88.44
99.74
112.40

14.15
15.64
19.25
22.62

15.84
15.72
18.76
23.39

2.16
2.45
2.74
3.18

1.67
1.80
1.96
2.54

1.88
2.46
2.41
2.00

1.38
1.46
1.66
2.12

12.68
14.48
15.94
17.93

2.44
2.52
2.76
2.92

10.77
11.89
12.85
13.96

18.05
20.07
21.40
22.05

1974—11 ................
I l l ...............
IV................

28.16
28.23
31.92

5.59
5.65
6.64

5.69
5.96
6.99

.78
.80
.91

.64
.64
.78

.61
.43
.48

.49
.58
.71

4.56
4.42
4.80

.75
.78
.87

3.60
3.39
3.78

5.46
5.57
5.97

111.40
113.99
116.22

1975—1..................
II .................
I l l ...............
IV...............

25.82
28.43
27.79
30.74

5.10
5.59
5.16
5.99

5.74
6.55
6.51
7.30

.91
.97
.94
.97

.59
.71
.62
.62

.44
.47
.50
.43

.62
.77
.85
.93

3.84
4.15
4.16
4.85

.58
.79
.91
.85

3.11
3.22
3.14
3.26

4.88
5.19
5.00
5.52

114.57
112.46
112.16
111.80

1976—I r ................
I I ................
I l l ...............

25.87
30.51
30.49

4.78
5.64
5.73

6.18
7.43
7.58

.92
.95
.95

.49
.56
.56

.26
.43
.34

.72
.86
.80

4.18
4.90
4.87

.62
.84
.96

2.92

4.82

114.72
121.14
123.00

1 Includes trade, service construction, finance, and insurance.




8. 88
8.'71

N o t e . —Dept, of Commerce estimates for corporate and noncorporate
business; excludes agriculture, real estate operators, medical, legal,
educational, and cultural service, and nonprofit organizations.

A42

REAL ESTATE CREDIT o JUNE 1976
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions of dollars)
End of year

Type of holder, and type of property

1972

1973

End of quarter
1975

1974
I

1976

II

III

IV

I

ALL HOLDERS.............................................
1- to 4-family...............................................
Multifamily..................................................
Commercial..................................................
Farm .............................................................

§64,825
345,372
76,667
107,349
35,437

634,954
384,738
85,296
125,572
39,348

688,652
412,168
91,222
140,965
44,297

695,369
415,607
91,522
142,701
45,539

709,153
425,132
91,733
145,353
46,935

r725,543
r436,420
r92,073
*•149,072
'47,978

*■741,547
*•447,350
'92,093
*•153,119
r48,985

754,320
456,150
92,759
155,309
50,102

PRIVATE FINANCIAL INSTITUTIONS..
1- to 4-family................................................
Multifamily..................................................
Commercial..................................................
Farm .............................................................

450,000
288,018
59,398
92,063
10,521

505,400
320,420
64,750
108,735
11,495

542,552
340,007
68,161
121,948
12,436

546,689
342,313
68,095
123,684
12,597

558,179
350,198
68,453
126,634
12,894

'570,049
*•358,184
*■68,688
*•130,153
*•13,024

'581,486
'365,371
'68,807
'134,100
'13,208

591,146
372,093
69,543
136,190
13,320

99,314

119,068

132,105

131,903

133,012

' 134,514
*•76,149
*•6,363
*•45,694
*•6,308

' 136,186
'77,018
'5,915
'46,882
'6,371

137,386

' 76,490
*•45,588
*-17,593
*•13,233
*•76

'46,041
'17,767
'13,364
'77

1- to 4-family............................................
Multifamily...............................................
Commercial..............................................
Farm .........................................................
Mutual savings banks ...................................

1- to 4-family............................................
Multifamily...............................................
Commercial..............................................
Farm.........................................................
1- to 4-family............. ..............................
Multifamily..............................................
Commercial..............................................

57,004
5,778
31,751
4,781

67,556

67,998
6,932
38,696
5,442
73,230

41,650
15,490
10,354
62

44,246
16,843
12,084
57

206,182

231,733

167,049
20,783
18,350
76,948

74,758
7,619
43,679
6,049
74,920

44,670
17,234
12,956
60
249,293

74,696
7,176
43,924
6,107
75,157

44,795
17,291
12,996
75
252,442

75,356
6,816
44,598
6,242
75,796

45,175
17,433
13,112
76
261,336

270,600

187,750
22,524
21,459

201,553
23,683
24,057

204,099
23,831
24,512

211,290
24,409
25,637

218,483
24,976
27,141

81,369

86,234

87,187

88,035

88,445

r77,249

278,693

77,706
5,962
47,288
6,430
77,550

46,219
17,837
13,416
78
286,575

224,710
25,417
28,566

230,776
25,846
29,953

89,358

89,635

1- to 4-family............................................
Multifamily..............................................
Commercial..............................................
Farm.........................................................

22,315
17,347
31,608
5,678

20,426
18,451
36,496
5,996

19,026
19,625
41,256
6,327

18,723
19,797
42,252
6,415

18,377
19,795
43,287
6,576

17,964
19,756
44,085
6,640

'17,602
'19,708
'45,288
6,760

17,392
19,898
45,533
6,812

FEDERAL AND RELATED AGENCIES..
1- to 4-family...............................................
Multifamily..................................................
Commercial..................................................
Farm.............................................................

45,790
30,170
6,063

55,664
35,579
8,364

72,380
46,322
11,329

76,010
48,455
11,995

79,952
51,195
12,348

84,522
54,697
12,753

89,039
58,440
12,954

92,102
60,518
13,184

9,557

11,721

14,729

15,560

16,409

17,072

17,645

18,400

Government National Mortgage Association ..

5,113

4,029

4,846

5,599

5,610

6,534

7,438

1- to 4-family............................................
Multifamily..............................................
Commercial..............................................

Farmers Home Administration .....................

2,513
2,600

1,455
2,574

2,248
2,598

2,787
2,812

1,600

1,700

1- to 4-family............................................
Farm................... .....................................

387
450

837

1,200

Federal Housing and Veterans Administra­
tions .......................................................

3,338

3,476

2,013
1,463

2,009
2,006

Federal National Mortgage Association . . . .

19, 791

24,175

29,578

17,697
2,094

20,370
3,805

23,778
5,800

1- to 4-family............................................
Multifamily...............................................
1- to 4-family............................................
Multifamily..............................................

2,199
1,139

550
650

734
866

4,015

780
920

4,047

2,787
2,823
1,800

826
974

4,297

1,879
2,168

1,915
2,382

29,754

30,015

23,743
6,011

7,619

3,692
2,842

4,728
2,710

4,886
2,733

1,900

2,000

2,100

4,681

4,970

872
1,028

1,951
2,730

918
1,082

1,990
2,980

964
1,136

5,270

2,049
3,221

23,988
6,027

25,049
6,006

31,055

31,824

25,813
6,011

25,562
5,920

31,482

Federal land banks (farm only).................

9,107

11,071

13,863

14,640

15,435

16,044

16,563

17,264

Federal Home Loan Mortgage Corporation.

1,789

2,604

4,586

4,608

4,944

5,033

4,987

4,602

GNMA Pools ................................................

1- to 4-family............................................
Multifamily...............................................

INDIVIDUALS AND OTHERS2................
1- to 4-family................................................
Multifamily..................................................

1- to 4-family............................................
Multifamily..............................................

Farm.............................................................

2,446
158

4,217
369

4,231
377

5,815

9,109

13,892

15,662

17,851

5,620
195

8,745
364

13,336
556

15,035
627

17,136
715

69,035
27,184
11,206
15,286
15,359

73,890
28,739
12,182
16,837
16,132

73,720
25,839
11,732
19,017
17,132

72,670
24,839
11,432
19,017
17,382

71,022
23,739
10,932
18,719
17,632

1,754
35

1 Includes loans held by nondeposit trust companies but not bank trust
departments.
2 Includes some U.S. agencies for which amounts are small or separate
data are not readily available.




4,543
401

4,632
401
19,275

4,588
399
21,257

4,247
355
23,765

18,501
774

20,403
854

22,810
955

70,972
23,539
10,632
18,919
17,882

'71,022
23,539
'10,332
19,019
18,132

71,072
23,539
10,032
19,119
18,382

N o t e . — Based on data from various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal Home Loan Bank Board and the Dept, of Commerce.
Separation of nonfarm mortgage debt by type of property, where not
reported directly, and interpolations and extrapolations where required,
estimated mainly by Federal Reserve. Multifamily debt refers to loans
on structures of 5 or more units.

JUNE 1976 □ REAL ESTATE CREDIT

A43

FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATIONSECONDARY MORTGAGE MARKET ACTIVITY
(In millions of dollars)
FNMA
Mortgage
holdings

End of
period

FHLMC

Mortgage
transactions
(during period)

Total i

FHAmsured

VAguar­
anteed

Pur-

1971.............
1972.............
1973.............
1974.............
1975.............

17,791
19,791
24,175
29,578
31,824

12,681
14,624
16,852
19,189
19,732

5,110
5,112
6,352
8,310
9,573

3,574
3,699
6,127
6,953
4,263

1975—Apr...
M ay..
June..
July. .
Aug...
Sept...
O ct...
Nov...
Dec...

29,815
29,858
30,015
30,351
30,777
31,055
31,373
31,552
31,824

19,282
19,251
19,282
19,385
19,507
19,560
19,641
19,648
19,732

8,337
8,395
8,498
8,693
8,942
9,122
9,309
9,430
9,573

211
247
326
538
594
488
508
372
451

1976—Ja n .. .
Feb...
Mar. .
Apr...

31,772
31,618
31,482
31,389

19,674
19,541
19,431
19,368

9,554
9,521
9,473
9,431

76
56
85
103

Sales

336
211
71
5
2

55
22

Mortgage
commitments

Mortgage
holdings

Made
during
period

Out­
stand­
ing

Total

9,828
8,797
8,914
10,765
6,106

6,497
8,124
7,889
7,960
4,126

968
1,789
2,604
4,586
4,987

913
621
557
575
814
575
282
332
517

6,890
6,615
6,549
6,119
5,888
5,399
4,685
4,385
4,126

189
355
405
213

3,170
3,201
3,120
2,788

i Includes conventional loans not shown separately.
from FNMA and FHLMC, respectively.

N o t e . —Data

For F N M A : Holdings include loans used to back bond issues guaranteed

by GNMA. Commitments include some multifamily and nonprofit
hospital loan commitments in addition to 1- to 4-family loan commitments
accepted in FNMA’s free market auction system, and through the FNM AGNMA Tandem Plans.

Mortgage
transactions
(during period)

Mortgage
commitments

Con­
ven­
tional

Pur­
chases

Sales

Made
during
period

Out­
stand­
ing

821
1,503
1,743
1,904
1,824

147
286
861
2,682
3,163

778
1,297
1,334
2,191
1,716

64
408
409
52
1,020

1,606
1,629
4,553
982

182
198
186
2,390
111

4,634
4,773
4,944
5,015
4,942
5,033
5,119
4,971
4,987

1,890
1,920
1,936
1,943
1,863
1,852
1,843
1,834
1,824

2,744
2,854
3,008
3,072
3,080
3,181
3,276
3,137
3,163

121
203
210
161
98
148
176
104
69

71
38
5
63
145
31
59
225
30

297
42
28
139
132
79
45
50
71

1,161
969
700
530
509
403
201
124
111

4,958
4,686
4,602

1,816
1,802
1,787

3,142
c2 ,884
2,185

47
51
95

57
296
98

42
43
93

99
87
128

T7TTA

■T-WA­
V’A
V /v

For FHLMC: Holdings and transactions cover participations as well as
whole loans. Holdings include loans used to back bond issues guranteed
by GNMA. Commitments cover the conventional and Govt.-underwritten loan programs.

FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES
Date of auction
Item

Amounts (millions of dollars):
Govt.-underwritten loans
Offered1................................
Accepted...............................
Conventional loans
Offered1.................................
Accepted...............................
Average yield (per cent) on short­
term commitments2
Govt.-underwritten loans. . . . .
Conventional loans..................

1975

1976

Dec. 29

J a n .12

Jan. 26

Feb. 9

Feb. 23

Mar. 8

Mar. 22

Apr. 5

Apr. 19

May 3

May 17

June 1

95.3
52.7

58.4
31.5

103.9
57.7

252.2
179.9

126.9
81.2

299.9
171.9

146.3
121.6

106.2
56.2

132.1
60.1

483.3
222.3

634.3
321.4

349.5
224.7

41.8
11.8

42.7
32.1

33.4
24.7

57.8
36.9

44.0
23.3

75.4
45.0

46.2
33.7

56.4
31.8

55.3
33.4

110.7
60.1

128.8
68.9

131.4
90.5

9.29
9.35

9.13
9.28

9.07
9.22

9.07
9.17

9.04
9.14

9.06
9.15

9.03
9.13

8.94
c9.05

c8.83
9.00

8.94
9.09

9.13
9.24

9.20
9.31

1 Mortgage amounts offered by bidders are total bids received.
2 Average accepted bid yield (before deduction of 38 basis-point fee
paid for mortgage servicing) for home mortgages assuming a prepayment




period of 12 years for 30-year loans, without special adjustment for
- FNMA commitment fees and FNMA stock purchase and holding require­
ments. Commitments mature in 4 months.

A44

REAL ESTATE CREDIT □ JUNE 1976
MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT
(End of period, in billions of dollars)
Holder

All holders...................................................
F H A .........................................................
VA............................................................
Commercial banks......................................
F H A .........................................................
VA............................................................
Mutual savings banks.................................
F H A .........................................................
VA............................................................
Savings and loan assns...............................
FH A .........................................................
VA............................................................ }
Life insurance cos........................................
FH A .........................................................
VA............................................................
Others..........................................................
FH A .........................................................
VA............................................................

June 30,
1974

Sept. 30,
1974

Dec. 31,
1974

Mar. 31,
1975

June 30,
1975

Sept. 30,
1975

Dec. 31,
1975

137.8
84.9
52.9
11.0
7.6
3.4
27.9
15.1
12.8

138.6
84.1
54.5
10.7
7.4
3.3
27.8
15.0
12.8

140.3
84.1
56.2
10.4
7.2
3.2
27.5
14.8
12.7

142.0
84.3
57.7
10.5
7.2
3.3
27.3
14.7
12.6

143.0
85.0
58.0
9.6
6.4
3.2
27.2
14.7
12.5

144.9
85.1
59.8
9.7
6.4
3.3
27.0
14.5
12.5

147.0
85.4
61.6
9.4
6.3
3.1
27.4
14.7
12.7

29.7
13.1
8.8
4.3
56.1

}

29.9
12.9
8.7
4.2
57.4

}

N o t e . —VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.

29.9
12.7
8.6
4.2
59.9

}

29.9
12.5
8.4
4.1
61.6

}

30.2
12.2
8.2
4.0
62.2

}

30.4
12.1
8.1
4.0
65.7

\

30.6
11.8
7.9
3.9
67.8

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

Period

Number
of loans

Total
amount
committed
(millions of
(dollars)

1972...........................
1973...........................
1974...........................
1975...........................

2,132
2,140
1,166
599

1975—Jan.................
Feb.................
Mar................
Apr.................
May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec................

31
46
46
32
73
61
53
44
57
57
47
52

Averages
Loan
amount
(thousands
of dollars)

Contract
interest
rate
(per cent)

Maturity
(yrs./mos.)

Loanto-value
ratio
(per cent)

Capitaliza­
tion rate
(per cent)

Debt
coverage
ratio

Per cent
constant

4,986.5
4,833.3
2,603.0
1,717.0

2,339
2,259
2,232
2,866

8.57
8.76
9.47
10.22

23/3
23/3
21/3
21/9

75.2
74.3
74.3
73.8

9.6
9.5
10.1
10.8

1.29
1.29
1.29
1.33

9.8
10.0
10.6
10.6

43.8
94.6
109.6
108.4
227.5
167.5
178.6
106.5
123.8
144.7
252.8
159.4

1,414
2,057
2,382
3,386
3,116
2,745
3,370
2,420
2,172
2,538
5,378
3,065

10.44
10.08
10.37
10.02
10.23
10.11
10.19
10.26
10.24
10.29
10.24
10.15

18/4
22/11
23/1
23/0
20/9
21/9
20/7
21/2
22/8
20/10
22/7
23/4

71.9
74.3
74.1
75.6
74.7
73.0
74.6
72.7
73.6
74.3
72.7
73.7

11.0
10.9
11.3
10.8
10.8
10.5
10.9
10.8
10.7
10.7
10.9
11.0

1.33
1.34
1.34
1.36
1.30
1.29
1.31
1.32
1.37
1.28
1.35
1.34

11.9
11.0
11.3
10.8
11.1
11.2
11.3
11.4
11.1
11.3
11.2
11 .0

N o t e . — American Life Insurance Association data for new commitments
of $100,000 and over each on mortgages for multifamily and nonresidential
nonfarm properties located largely in the United States. The 15 companies
account for a little more than one-half of both the total assets and the
nonfarm mortgages held by all U.S. life insurance companies. Averages,
which are based on number of loans, vary in part with loan composition
by type and location of property, type and purpose of loan, and loan
amortization and prepayment terms. Data for the following are limited




to cases where information was available or estimates could be made:
capitalization rate (net stabilized property earnings divided by property
value); debt coverage ratio (net stabilized earnings divided by debt service);
and per cent constant (annual level payment, including principal and
interest, per $100 of debt). All statistics exclude construction loans,
increases in existing loans in a company’s portfolio, reapprovals, and loans
secured by land only.

JUNE 1976 □ REAL ESTATE CREDIT AND CONSUMER CREDIT

A45

TERMS AND YIELDS ON NEW HOME MORTGAGES
Conventional mortgages
Terms i

Yields (per cent) in
primary market

Period

FHAinsured
loans—Yield
in private
secondary
market 5

Contract
rate (per
cent)

Fees and
charges
(per cent) 2

Maturity
(years)

Loan/price
ratio
(per cent)

Purchase
price (thous.
of dollars)

Loan
amount
(thous. of
dollars)

FHLBB
series 3

HUD
series4

.

7.60
7.45
7.78
8.71
8.75

.87
.88
1.11
1.30
1.54

26.2
27.2
26.3
26.3
26.8

74.3
76.8
77.3
75.8
76.1

36.3
37.3
37.1
40.1
44.6

26.5
28.1
28.1
29.8
33.3

7.74
7.60
7.95
8.92
9.01

7.75
7.64
8.30
9.22
9.10

7.70
7.53
8.19
9.55
9.19

1975—Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

8.71
8.63
8.73
8.66
8.63
8.70
8.75
8.74
8.74

1.53
1.63
1.42
1.40
1.56
1.46
1.59
1.65
1.65

26.5
27.0
26.5
26.0
26.7
26.7
27.3
27.6
27.8

76.4
75.5
76.4
75.9
77.0
75.9
77.5
76.5
76.9

44.5
43.5
43.1
44.1
44.6
45.6
43.9
46.4
45.9

33.4
32.2
32.4
32.9
33.7
34.1
33.2
34.8
34.7

8.96
8.90
8.96
8.89
8.89
8.94
9.01
9.01
9.01

9.00
9.05
9.00
9.00
9.15
9.25
9.25
9.20
9.15

9.16
9.06
9.13
9.32
9.74
9.53
9.41
9.32

1976—Jan.,
Feb.,
Mar.
Apr.:

8.71
8.67
8.67
8.72

1.74
1.56
1.60
1.36

27.4
26.0
27.1
27.1

76.9
75.1
76.4
74.6

47.2
45.2
46.8
48.6

35.4
33.4
35.0
35.6

8.99
8.93
8.93
8.94

9.05
9.00
8.95
8.90

197
197
197
197
197

1
2
3
4
5

1 Weighted averages based on probability sample survey of character­
istics of mortgages originated by major institutional lender groups (in­
cluding mortgage companies) for purchase of single-family homes, as
compiled by Federal Home Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. Data are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer of property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates

9.06
9.04
8.82

(as shown in first column of this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices of prevailing
local conditions as of the first of the succeeding month. Yields are derived
from weighted averages of private secondary market prices for Sec. 203,
30-year mortgages with minimum downpayment and an assumed pre­
payment at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates.

FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT
(Per cent per annum)
Finance companies

Commercial banks
New
automo­
biles
(36 mos.)

Mobile
homes
(84 mos.)

Other
consumer
goods
(24 mos.)

Personal
loans
(12 mos.)

Creditcard
plans

10.51
10.63
10.81
10.96
11.15
11.31
11.53
11.57
11.62

11.07
10.96
11.21
11.46
11.71
11.72
11.94
11.87
11.71

12.81
12.88
13.01
13.14
13.10
13.20
13.28
13.16
13.27

13.00
13.10
13.20
13.42
13.45
13.41
13.60
13.47
13.60

D ec..

11.61
11.51
11 .46
11.44
11.39
11.26
11.30
11.31
11.33
11.24
11 .24
11.25

11.66
12.14
11.66
11.78
11.57
12.02
11.94
11 .80
11.99
12.05
11.76
11.83

13.28
13.20
13.07
13.22
13.11
13.10
13.13
13.05
13.06
13.00
12.96
13.11

1976—Jan...
Feb..
Mar..
Apr.P

11 .21
11.18
11.13
11.08

11.76
11.77
11.82
11.66

13.14
13.02
13.02
12.95

Month

1974—Apr..
M ay.
June.
July..
Aug..
Sept..
Oct..
N o v ..

Dec..

1975—Jan...
Feb...
Mar..
A pr..
May.
June.
July. .
Aug..
Sept..
Oct...
Nov..

Other
consumer
goods

Personal
loans

13.08

18.90

20.54

13.22

19.25

20.74

13.43

19.31

20.87

13.60

19.49

21.11

13.60

19.80

21 .09

13.59

20.00

20.82
20.72

Mobile
homes

New

Used

17.25
17.25
17.23
17.20
17.21
17.15
17.17
17.16
17.21

12.28
12.36
12.50
12.58
12.67
12.84
12.97
13.06
13.10

16.76
16.86
17.06
17.18
17.32
17.61
17.78
17.88
17.89

13.60
13.44
13.40
13.55
13.41
13.40
13.49
13.37
13.41
13.38
13.40
13.46

17.12
17.24
17.15
17.17
17.21
17.10
17.15
17.14
17.14
17.11
17.06
17.13

13.08
13.07
13.07
13.07
13.09
13.12
13.09
13.10
13.18
13.15
13.17
13.19

17.27
17.39
17.52
17.58
17.65
17.67
17.69
17.70
17.73
17.79
17.82
17.86

13.57

19.63

13.78

19.87

20.93

13.78

19.69

21.16

13.43

19.66

21.09

13.40
13.24
13.13
13.16

17.08
17.14
16.99
17.04

13.18
13.14
13.13

17.25
17.37
17.48

13.18

19.58

21.13

N o t e . — Rates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) of the Board of Governors.
Commercial bank rates are “most common” rates for direct loans with




Automobiles

specified maturities; finance company rates are weighted averages for
purchased contracts (except personal loans). For back figures and description of the data, see B u l l e t i n for Sept. 1973.

A46

CONSUMER CREDIT □ JUNE 1976
INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE
(In millions of dollars)

Holder, and type of credit

1973

1974

1975

1975
Oct.

Nov.

1976
Dec.

Jan.

Feb.

Mar.

Apr.

Amounts outstanding (end of period)
TOTAL......................................................

148,273

158,101

161,819

158,390

159,200

161,819

160,745

160,094

160,621

162,236

71,871
37,243
19,609
16,395
3,155

75,846
38,925
22,116
17,933
3,281

75,710
38,932
25,354
18,328
3,495

75,286
38,411
24,706
16,444
3,543

75,174
38,642
24,934
16,860
3,590

75,710
38,932
25,354
18,328
3,495

75,342
38,737
25,250
17,771
3,645

75,010
38,660
25,492
17,192
3,740

75,103
38,665
26,025
16,987
3,841

76,013
39,003
26,403
17,060
3,757

51,274
31,502
18,997
12,505
11,927
7,456
389

52,209
30,994
18,687
12,306
12,435
8,414
366

53,629
30,198
17,620
12,578
13,364
9,653
414

53,286
30,259
17,848
12,411
13,203
9,403
421

53,479
30,235
17,761
12,474
13,325
9,491
428

53,629
30,198
17,620
12,578
13,364
9,653
414

53,318
29,862
17,500
12,363
13,407
9,612
437

53,519
29,872
17,409
12,463
13,490
9,704
453

54,117
30,117
17,471
12,646
13,624
9,908
468

55,059
30,682
17,742
12,940
13,869
10,051
457

8,340
3,378

8,972
3,570

8,420
3,504

8,519
3,498

8,502
3,519

8,420
3,504

8,351
3,464

8,279
3,440

8,233
3,420

8,188
3,409

7,453
4,083

8,398
4,694

8,301
4,813

8,374
4,824

8,361
4,827

8,301
4,813

8,263
4,777

8,254
4,757

8,267
4,767

8,300
4,816

6,838
2,254

8,281
2,797

9,078
2,883

8,450
2,834

8,500
2,822

9,078
2,883

9,150
2,911

8,987
2,912

8,842
2,876

8,959
2,882

68,736
18,854
12,873
21,021
16,587
11,564
16,395
902

73,874
20,108
13,771
21,927
17,176
13,037
17,933
869

76,004
20,318
14,035
21,465
17,179
14,937
18,328
956

73,430
20,401
14,005
21,037
16,822
14,559
16,444
989

74,018
20,289
13,943
21,158
16,942
14,692
16,860
1,019

76,004
20,318
14,035
21,465
17,179
14,937
18,328
956

75,287
20,290
14,049
21,279
17,035
14,878
17,771
1,069

74,703
20,203
14,010
21,152
16,952
15,020
17,192
1,136

74,868
20,270
14,034
21,078
16,922
15,333
16,987
1,200

75,440
20,487
14,192
21,211
17,047
15,557
17,060
1,125

By holder:
Commercial banks.............................
Finance companies............................
Credit unions.....................................
Retailers1............................................
Others2...............................................
By type of credit:
Purchased...................................
Direct..........................................
Others.............................................
Mobile homes:
Finance companies.........................

Revolving credit:
Bank credit cards...........................
Bank check credit...........................
All other.............................................
Personal loans............................
Finance companies, total..............
Personal loans............................
Credit unions.................................
Retailers..........................................
Others.............................................

Net change (during period)3
20,826

9,824

3,719

830

805

894

1,295

1,169

1,513

1,436

11,002
5,155
2,696
1,632
341

3,971
1,682
2,507
1,538
126

-134
7
3,237
395
214

309
36
255
258
-2 9

233
157
270
84
61

310
34
471
125
-4 4

208
260
387
185
254

475
198
420
58
17

572
302
514
108
16

561
347
392
177
-4 3

Credit unions.................................
Other..............................................

6,980
4,196
2,674
1,523
1,753
1,024
7

935
-508
-3 1 0
-199
508
958
-2 3

1,420
-796
-1 ,0 6 7
272
929
1,239
48

389
164
76
88
103
122
1

404
163
33
130
144
91
5

540
260
48
213
89
184
6

488
-4 4
40
-8 4
275
203
54

632
293
34
259
174
165
*

654
239
102
138
230
192
-7

710
351
166
186
206
151
1

Mobile homes:
Commercial banks.........................
Finance companies.........................

1,933
462

634
192

-553
-6 6

-6 2
-7

-6
26

-6 1
-1 0

-2 6
-2 8

-4 5
-1 9

-1 4
-2

-4 9
-9

Home improvement, to tal................
Commercial banks.........................

1,196
483

946
612

-100
114

-6
23

38
42

23
41

106
30

57
32

23
35

18
27

1,428
479

1,442
543

798
86

78
17

29
2

-4 9
13

107
23

133
19

224
12

134
32

8,344
2,479
1,491
2,520
1,675
1,591
1,632
122

5,141
1,257
900
906
589
1,473
1,538
-3 3

2,133
213
265
-462
-3
1,900
395
87

420
89
119
-2 7
-7
127
258
-2 8

312
2
-6
20
15
173
84
33

440
107
149
-4
23
274
125
-6 1

625
118
100
20
40
173
185
129

392
43
33
49
114
242
58
*

615
75
42
117
77
307
108
7

600
67
67
176
157
228
177
-4 8

TOTAL......................................................
By holder:
Finance companies.............................
Others.................................................
By type of credit:
Automobile, total..............................
Commercial banks.........................
Purchased...................................
Direct..........................................

Revolving credit:
Bank credit cards...........................
All other.............................................
Commercial banks, total...............
Personal loans............................
Finance companies, to tal..............
Personal loans............................
Credit unions.................................
Retailers..........................................
Others.............................................

1 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers.




3 Figures for all months are seasonally adjusted and equal extensions
minus liquidations (repayments, charge-offs, and other credits).

JUNE 1976 □ CONSUMER CREDIT

A47

INSTALMENT CREDIT EXTENSIONS AND REPAYMENTS
(In millions of dollars)
Holder, and type of credit

1973

1974

1975

1975
Oct.

Nov.

1976
Dec.

Jan.

Feb.

Mar.

Apr.

Extensions1
164,527

166,170

166,833

14,832

14,877

15,295

16,205

15,824

16,318

15,775

72,216
43,221
21,143
25,440
2,507

72,602
41,809
22,403
27,034
2,322

73,186
39,543
24,151
27,369
2,584

6,518
3,412
2,187
2,531
183

6,599
3,712
1,995
2,302
268

6,796
3,530
2,381
2,431
158

6,687
4,231
2,253
2,578
456

6,939
4,054
2,248
2,347
236

7,102
3,992
2,389
2,596
238

6,729
3,944
2,386
2,544
171

46,486
29,368
17,497
11,871
9,685
7,009
424

43,431
26,407
15,575
10,831
8,851
7,788
385

46,530
26,693
14,758
11,936
9,651
9,702
484

4,189
2,434
1,333
1,101
836
878
41

4,218
2,460
1,310
1,150
831
885
42

4,405
2,591
1,450
1,141
897
875
42

4,511
2,361
1,314
1,047
987
1,068
95

4,378
2,545
1,377
1,168
912
881
40

4,537
2,584
1,463
1,121
954
964
35

4,438
2,560
1,427
1,134
946
891
40

Finance companies........................

4,437
1,673

3,486
1,627

2,349
1,018

198
81

233
97

203
88

209
79

211
71

230
81

182
79

Home improvement, total.................
Commercial banks.........................

4,828
2,489

4,854
2,790

4,333
2,515

392
238

409
243

418
253

459
231

429
241

421
247

430
249

Revolving credit:
Bank credit cards...........................
Bank check credit..........................

13,862
3,373

17,098
4,228

19,567
4,214

1,698
357

1,752
348

1,719
412

1,840
397

1,931
407

2,046
390

1,907
405

89,864
18,683
12,927
31,032
18,915
13,768
25,440
941

91,455
18,602
13,177
30,764
18,827
14,228
27,034
827

88,818
17,844
12,623
28,654
18,406
13,992
27,369
959

7,915
1,593
1,144
2,474
1,613
1,269
2,531
48

7,819
1,562
1,076
2,771
1,674
1,074
2,302
111

8,051
1,619
1,178
2,527
1,513
1,461
2,431
14

8,711
1,649
1,145
3,139
1,980
1,141
2,578
204

8,397
1,604
1,139
3,041
1,916
1,319
2,347
86

8,613
1,605
1,135
2,941
1,801
1,376
2,596
93

8,335
1,427
1,036
2,889
1,807
1,446
2,544
29

TOTAL......................................................
By holder:
Commercial banks.............................
Credit unions.....................................
Retailers2............................................
Others3...............................................
By type of credit:
Automobile, total..............................
Commercial banks.........................
Purchased...................................
Direct.........................................
Finance companies........................
Credit unions.................................
Mobile homes:

All other.............................................
Commercial banks, total...............
Finance companies, to tal..............
Personal loans............................
Credit unions.................................
Others.............................................

Repayments1
143,701

156,346

163,113

14,002

14,072

14,401

14,910

14,656

14,805

14,339

61,214
38,066
18,447
23,808
2,166

68,631
40,127
19,896
25,496
2,196

73,320
39,536
20,914
26,974
2,370

6,209
3,376
1,932
2,273
212

6,367
3,555
1,725
2,218
208

6,486
3,496
1,910
2,306
202

6,479
3,971
1,866
2,393
202

6,464
3,856
1,828
2,289
219

6,530
3,690
1,875
2,488
222

6,168
3,597
1,994
2,367
214

Automobile, total..............................
Commercial banks.........................
Purchased...................................
Direct..........................................
Finance companies........................
Credit unions.................................
Others.............................................

39,506
25,172
14,822
10,348
7,932
5,985
417

42,496
26,915
15,886
11,028
8,343
6,830
408

45,110
27,489
15,825
11,663
8,722
8,463
436

3,800
2,271
1,257
1,013
733
756
40

3,814
2,297
1,277
1,020
687
794
37

3,865
2,331
1,402
928
808
691
36

4,023
2,405
1,274
1,131
712
865
41

3,746
2,252
1,343
909
738
716
40

3,883
2,345
1,361
983
724
772
42

3,728
2,209
1,261
948
740
740
39

Mobile homes:.
Commercial banks.........................
Finance companies........................

2,504
1,211

2,852
1,435

2,902
1,084

260
88

239
72

264
98

235
107

256
90

244
83

231
88

Home improvement, total.................

3,632
2,006

3,908
2,178

4,434
2,400

398
214

371
202

395
212

353
201

372
209

398
212

412
222

Revolving credit:
Bank credit cards
Bank check credit..........................

12,434
2,894

15,656
3,685

18,769
4,128

1,619
340

1,723
346

1,768
399

1,733
374

1,798
388

1,822
378

1,773
373

81,520
16,204
11,436
28,512
17,240
12,177
23,808
819

86,314
17,345
12,277
29,858
18,238
12,755
25,496
860

86,689
17,635
12,361
29,116
18,403
12,092
26,974
872

7,496
1,504
1,025
2,501
1,620
1,142
2,273
76

7,507
1,560
1,082
2,751
1,659
901
2,218
77

7,611
1,512
1,029
2,531
1,490
1,187
2,306
75

8,086
1,531
1,045
3,119
1,940
968
2,393
75

8,005
1,561
1,106
2,992
1,802
1,077
2,289
86

7,998
1,530
1,093
2,824
1,724
1,069
2,488
86

7,735
1,360
969
2,713
1,650
1,218
2,367
77

TOTAL......................................................
By holder:
Commercial banks.............................
Finance companies............................
Retailers2............................................
Others3...............................................
By type of credit:

All other.............................................
Commercial banks, total...............
Personal loans............................
Finance companies, to tal..............
Personal loans............................
Retailers..........................................
Others.............................................

1 Monthly figures are seasonally adjusted.
2 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.




3 Mutual savings banks, savings and loan associations, and auto dealers.

A48

INDUSTRIAL PRODUCTION □ JUNE 1976
MARKET GROUPINGS
(Seasonally adjusted, 1967 = 100)

1967
Grouping

Consumer goods..........................
Intermediate products.....................

por­
tion

1975
average

1975
May

June

July

Aug.

1976

Sept.

Oct.

Nov.

Dec.

Jan.

Febr.

Mar. Apr.? May6

100.0 113.8 110.1 111 1 112.2 114.2 116.2 116.7 117.6 118.4 119.5 120.8 121 .7
62.21 115.7 113.4 114 2 115.3 115.8 116.9 116.9 118.0 119.3 120.2 121.4 121.4
48.95 115.5 113.7 114.5 1 15.7 115.9 116.9 117.0 117.9 119.0 119.6 120.7 1 20.7
28.53 124.0 121.2 m 3 125.5 125.7 126.8 127.0 128.9 130.2 130.9 132.0 131.8
20.42 103.6 102.9 10? 2 102.2 102.3 102.8 102.6 102.5 103.5 103.8 104.8 105.0
13.26 116.3 112.4 11? 8 114.3 115.4 116.6 117.0 118.5 120.3 122 4 123.5 124.0
37.79 110.6 104.9 106.0 106.8 111.5 115.1 116.5 116.8 116.8 118.3 120.0 122.2

122.3

I ZJ .Z

122.0

1ZZ. o

121.4

122.6

132.8
105.4
124.1
1ZZ. /

1JJ . 7
i1UO. yo
M
'X . D
^
1Zj
IZj •o

1 'X'X Q

Consumer goods

Auto parts and allied goods........
Appliances, TV, and radios........
Appliances and A /C ................
TV and home audio................
Carpeting and furniture..............

2

7.86

112.5

1 10.5

in

115.9

116.1

118.3

118.3

118.8

119.5

120.9

123.1

124.9

126.5

127.7

20.67

128.4

125.3

J?7 2 1 2 9 . 0

129.4

130.1

130.5

132.7

134.4

134.6

135.4

134.4

135.1

136.3

2.84 99.1 97.6 103 4 106.9 105.9 106.7 108.9 109.3 111.3 111.6 114.8 116.2 117.2 116.9
1.87 86.9 86.3 93 2 97.7 96.8 97.9 101.2 100.0 100.1 99’.2 105.2 108.5 113.4 113.8
.97 122.3 119.3 122.8 124.8 123.2 123.5 123.9 127.2 132.7 135.2 133.3 131.0 124.5 122.9
5.02 120.2 117.8 118 8 121.0 121.9 125.0 123.6 124.2 124.1 1 2 6 . 2 127.7 129.9 131.7 133.6
1.41 101.9 102.4 103.5 104.8 106.5 108.4 105.4 104.6 106.0 111 .4 113.2 118.3 123.2 126.4
.92 118.4 118.4 118,3 118.9 122.2 124.1 123.4 122.8 123.9 128.5 132.6 134.4 138.9
.49 70.8
1.08 133.8 128.6 131 .1 135.5 136.0 137.6 137.9 139.3 138.7 139.1 138 0 140 7 143 5
2.53 124.5 121.7 1?? 1 124.0 124.5 129.0 127.4 128.8 128.1 129.1 131.6 131.9 131 ‘.2 131.5

4.32 99.0 94.4 97 7 101.6 102.0 101.5 104.5 106.2 108.2 109.5 110.1 109.1
16.34 136.2 133.5 134.9 136.3 136.6 137.8 137.3 139.7 141 .4 141 .3 142.0 141.1
8.37 125.3 122.4 124.2 125.5 125.8 126.4 127.2 130.0 130.6 130.4 130.4 128.6
Nonfood staples...........................
7.98 147.7 145.3 146.4 147.7 148.0 149.9 148.1 150.0 152.7 152.7 154.1 154.2
Consumer chemical products.. 2.64 161.3 158.4 159.2 161.2 160.4 161.6 161.7 167.9 169.0 167.9 169.8 169.9
Consumer paper products.......
1.91 125.1 122.8 123.3 124.1 126.7 127.7 126.4 125.5 131.9 132.7 134.1 132.3
Consumer fuel and lighting. . . 3.43 149.9 147.8 149.4 150.4 150.3 153.2 149.5 149.8 151.7 152.3 153.4 154.5
Residential utilities............... 2.25 161.8 160.9 161.3 160.5 161.1 164.8 160.1 161.5 163.1 165.8

Clothing............................................
Consumer staples.............................
Consumer foods and tobacco....

141.6 142.9
129.3 131.0
154.4 155.1
167.8
133.5
155.9

Equipment
Business equipment..................................

12.74

116.7

116.8
133.7
106.0
128.2

115.0

115.3
131.7
105.0
126.2

113.9

114.0
127.7
104.3
125.8

113.9

113.3
126.9
105.5
120.3

114.9

115.6

113.4
128.3
105.2
120.8

114.5
129.7
104.5
125.7

115.7

115.4
133.1
104.0
127.9

Industrial equipment.......................
Building and mining equip..........
Manufacturing equipment..........
Power equipment.........................

6.77
1.45
3.85
1.47

Commercial, transit, farm equip.. . .
Commercial equipment................
Transit equipment.......................
Farm equipment...........................

5.97 116.6 114.7 113.9 114.6 116.4 116.9 116.2
3.30 125.1 121.5 120.7 123.0 123.4 122.6 123.3
2.00 98.1 98.6 98.0 98.0 101.5 105.0 100.4
.67 130.4 129.0 127.3 122.9 127.7 124.3 128.0

Defense and space equipment................

Military products.............................

7.68

5.15

81.8

80.5

82.7

82.0

82.9

82.0

82.6

81.4

81.6

82.1

80.6

80.7

81.1

80.2

118.4

116.5

118.2

116.3
136.5
103.6
129.3

118.4
138.0
105.9
131.3

118.7
138.8
106.1
131.7

116.7
123.3
101.7
128.6

118.0
125.3
102.9
126.8

118.2
125.7
102.5
128.5

79.4

77.3

79.0

77.0

79.3

76.5

120.4

119.5
138.0
108.1
130.5
121.4
127.4
108.6
130.1
79.1

76.4

120.9

120.3
136.5
109.8
131.6
121.5
129.2
107.4
126.2
78.8

76.0

121.8

121.5
137.9
111.2
132.3

123.8

123.7
140.2
113.0
135.2

122.0 124.0
129.4 129.6
107.2 112.6
129.8
78.2

75.2

78.9

75.5

Intermediate products
Construction products.........................
Misc. intermediate products...............

5.93 112.4 107.6 106.8 108.0 109.3 112.0 112.5 112.5 114.2 116.9 117.6 118.4 118.7 118.2
7.34 119.7 116.2 117.4 119.3 120.3 120.3 120.7 123.3 125.3 127.1 128.2 128.7 128.4

Materials
Durable goods materials.........................

20.91

106.5

100.2

99.8

100.3

106.1

108.7

110.2

110.9

110.8

113.0

Nondurable goods materials..................

13.99

115.0

109.5

112.3

114.0

118.3

123.4

125.0

124.9

125.7

126.4

Consumer durable p arts.................
Equipment parts..............................
Durable materials n.e.c....................

Textile, paper, and chem. mat........
Nondurable materials n.e.c.............
Fuel and power, industrial.................

115.2

116.9

117.9

119.2

127.3

128.7

129.6

130.4

4.75 94.0 87.7 90.8 92.8 101.7 103.0 102.4 102.8 103.1 104.8 106.9 108.6 108.2 109.2
5.41 106.4 102.1 97.3 96.8 100.7 102.4 105.2 107.9 107.9 108.7 109.2 110.2 111 .2 112.2
10.75 112.1 104.7 105.1 105.3 111 .0 114.5 116.3 116.1 115.7 118.9 121.9 124.0 125.5 127.1
8.58 121.2 113.2 117.0 118.9 126.0 133.9 136.1 136.3 137.7 138.8 139.8 141.0 142.4 143.5
5.41 105.1 103.7 105.1 106.2 106.0 106.7 107.3 106.9 106.6 106.8 107.5 109.3 109.3 109.7
2.89 118.7 118.0 119.5 121.1 118.4 121.3 120.6 120.7 117.2 118.6 120.3 127.4 123.7 125.3

Supplementary groups
Home goods and clothing...................
Containers
.......................

9.34 110.3 106.9 109.1 112.0 112.8 114.2 114.7 115.8 116.7 118.5 119.6 120.3 121.8 123.4
1.82 129.9 124.3 128.4 132.8 133.5 142.7 137.6 133.9 133.3 140.8 142.4 148.1 143.4

Gross value of products
in market structure
(In billions of 1963 dollars)
P r o d u c ts , t o t a l .............................
Final products......................................

Consumer goods..........................
Equipment....................................
Intermediate products.....................
For N ote see opposite page.




286.3

408.6 414.5 416.1 418.1 426.1 425.8 430.9 435.1 437.0 442.7 444.5 445.4 445.4

221.4

319.4

156.3
65.3
64.9

325.0

325.2

326.3

332.9

333.7

336.5

338.9

339.7

344.0

345.4

346.7

347.4

217.8 223.6 224.9 225.4 230.8 231.7 234.9 237.0 237.2 239.6 240.9 241.9 241.6
101.5 101.3 100.5 100.9 102.3 101.7 101.8 102.0 102.4 104.2 104.3 104.7 105.9
89.2 89.6 91.1 92.9 92.9 93.0 c9 4 .1 96.0 97.7 98.6 99.1 98.8 97.8

JUNE 1976 □ INDUSTRIAL PRODUCTION

A49

INDUSTRY GROUPINGS
(Seasonally adjusted, 1967 = 100)

Grouping

Manufacturing................................

Durable......................................
Nondurable.................................
Mining and utilities.......................
Mining........................................
Utilities.......................................

1967
pro­
por­
tion

1975
aver­
age

1975
May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

88.55 112.2 108.2 109.5 110.6 112.8 114.7 115.8 116.3 117.0 118.1

52.33
36.22
11.45
6.37
5.08

105 *
121.4
127.5
106.6
153.7

Feb.r

Mar. Apr.*> May6

105.4
123.4
127.0
105.0
154.6

107.0
125.7
127.8
105.3
156.1

107.6
127.2
127.0
106.4
152.9

107.8
128.7
127.6
106.9
153.9

108.1
130.0
127.7
105.4
155.7

109.0
131 .4
129.3
105.5
159.2

119.9 120.3 121.1

122.0

112.9
132.9
131 .3
106.
162.1

114.3
133.2
132.2
107.9
162.7

99.8 100.8 100.7 104.1

106.1

105.9 107.1

105.6

108.5 112.0 111.0 113.5

115.7

102.5
116.2
126.5
105.9
152.3

103.2
118.6
126.8
106.3
152.6

103.4
120.8
127.5
106.4
153.9

111.3
132.3
129.2
104.8
159.9

111 .4
133.2
131.8
108.7
160.9

Durable manufactures
Primary and fabricated metals . . . .

12.55 105.6

Primary metals...........................
Iron and steel, subtotal..........
Fabricated metal products........

92
96.5 97.2 97.0 98.1 95.1 99.9 104.7 102. 106.3 110.8
6.61 97.2 89.9 91.
4.23 96.1 90.1 88.7 87.0 90.4 91.3 93.2 96.0 92.2 96.2 101.4 98.4 102.5 106.5
5.94 114.8 100.9 110.9 109.7 112.7 116.1 115.9 117.3 117.3 117.8 120.0 120.0 121 .5 121.1

Machinery and allied goods ............

32.44 104.0 101.7 102.3 102.4 103.7 105.0 105.8 106.2 106.8 106.7 108.4 109.1 110.3 111.4
17.39 112.8 109.0 108.2 108.4 110.0 111.7 112.9 114.2 115.1 115.3 117.3 118.3 119.7 120.8

Machinery...................................
Nonelectrical machinery........
Electrical machinery..............
Transportation equipment........
Motor vehicles and parts
Aerospace and misc. trans. eq
Instruments.................................
Ordnance, private and Govt.

9.17 118.7 113.7
8.22 106.2 103.
9.29 88.4 87.6
4.56 98.1 95.0
4.73 79.0 80.4
2.07 133.7 129.7
3.69 85.0 86.7

112.3
103.8
90.5
100.0
81.3
131.0
87.7

112.9
103.4
91 .0
103.2
79.3
132.4
86.4

115.1
104.4
92.9
107.2
79.1
132.1
84.3

116.7
106.1
94.3
110.1
79.2
134.5
84.2

Lumber, clay , and glass .................

4 .44 109.1 105.9 107.0 108.2 110.6 113.1

Furniture and miscellaneous...........

2.90 121.5 119.7 120.1

Lumber and products................
Clay, glass, and stone products.
Furniture and fixtures.................
Miscellaneous manufactures.

117.7
107.6
94.7
111.0
79.0
134.5
83.9

119.2
108.6
94.1
109.4
79.4
137.0
81 .7

119.9
109.6
95.5
110.4
81.1
138.7
78.7

119.9
110.4
94.4
110.0
79.4
140.9
77.8

121.4
112.6
96.3
114.3
78.9
142.9
77.6

122.1
114.1
97.4
118.1
77.3
141.2
77.4

123.4
115.7
98.
122.2
76.3
142.2
76.6

124.3
117.0
101.1
123.5
79.5
141.3
76.5

114.4 112.6 113.9 118.0 117.5 118.5 119.4 120.0

1.65 109.7 108.0 110.3 112.0 114.5 115.5 116.8 115.0 116.1 121.9 121.5 119.2 120.8
2.79 108.8 104.7 105.1 106.2 108.3 111.7 113.0 111 .2 112.6 115.7 115.3 118.2 118.6
121.1 123.1

124.3 124.6 122.9 124.1

124.0 129.5 129.2 128.6 131.1

1.38 109.6 109.6 107.9 109.4 109.6 110.6 110.8 111 .0 112.2 115.1 116.2 115.6 116.3
1.52 132.3 129.0 131.1 131. 135.3 136.7 137.2 133.7 135.1 132.1 141.8 141 .6 139.9

Nondurable manufactures
Textiles, apparel, and leather ........

Textile mill products................. .
Apparel products....................... .
Leather and products................ .

Paper and printing ...........................

Paper and products...................
Printing and publishing............. ,

Chemicals, petroleum, and rubber

6.90

98.0

93.2

94.9

97.4 100.2 104.0 106.0 108.4 109.7 111.3 109.4 110.0 111.1 112.4

2.69 109.9 103.8 106.9 110.7 115.0 121.2 123.2 125.2 126.8 126.7 122.2 125.6 125.2
3.33 94.7 90.9 91.5 92.9 95.8 96.1 98.0 101.3 103.2 106.1 105.6 104.3
83.5 81.5 83.4 84.2 83.2 92.4
73.8 70.0 71.2 73.5 71.7 81.2 83
7.92 109.6 103.9 107.3 107.4 110.8 113.9 114

114.7 116.8 119.6 120.0 121.2 121.0 121.4

3.18 115.7 105.8 109.5 111.7 116.4 124.0 127.0 127.3 129.2 132.6 135.0 137.0 136.4
4.74 105.5 102.6 105.9 104.4 107.1 107.1 106.5 106.2 108.5 110.8 110.0 110.5 110.6 112.4
11.92 140.3 132.4 136.2 140.1

143.6 146.2 148.5 150.2 151.1

151.6 155.6 158.3 155.6 154.5

Chemicals and products.............
Petroleum products................... .
Rubber and plastics products...,

7.86 143.2 135.7 138.2 143.4 146.3 148.8 152.5 155.2 156.3 156.8 158.6 161 .4 159.7 160.4
1.80 124.5 118.5 122.4 124.6 126.7 127.1 126.5 126.8 128.7 123.6 127.7 129.5 131.6 129.7
2.26 142.7 132.7 140.1 141.6 147.8 152.0 153.1 151.5 151.2 156.0 167.5 170.8 160.9

Foods and tobacco ...........................

9.48 124.5 122.4 123.5 124.8 125.2 126.0 126.3 128.0 129.4 130.3 129.6 128.6 130.0 131.5
8.81 125.9 123.7 125.1 126.3 126.7 127.4 127.3 129.1 130.7 131.5 130.7 129.5 131.1 132.8

Foods.......................................... .
Tobacco products.......................

.67 107.3 103.8 102.2 104.8 105.7 109.3 111.9 113.7 109.9 114.1 115.8 117.4

Mining
M etal , stone, and earth minerals. ..,

Metal mining...............................
Stone and earth minerals.......... .

Coal, oil, and ga s ...........................

Coal............................................ .
Oil and gas extraction.................

1.26 109.8 106.2 101.5 105.0 107.2 107.2 108.0 110.0 108.2 112.1

5.11

105.8 105.8 107.6 106.7 104.4 104.8 106.1

105.9 104.7 103.8 102.0 106.8 104.5 105.9

3.90 164.7 163.0 163.3 164.9 «165.9 167.8 163.4 c165 .0 167.6 172.0
1.17 117.1

Published groupings include series and subtotals not shown sepa­
rately. Figures for individual series and subtotals are published in the
monthly Industrial Production release.




115.8 115.7

.69 113.8 113.6 120.4 120.6 105.7 113.6 114.6 119.9 107. 109.4 115.0 139.8 119.4 122.0
4.42 104.6 104.5 105.5 104.5 104.2 103.4 104.8 103.8 104.3 102.9 100.0 101.7 102.2 103.3

Utilities
Electric............................................
Gas..................................................

116.3 116.5

.51 121.7 114. 110.6 110.3 119.2 118.5 119.8 122.1 120.9 124.8 128.7 130.2 128.7
.76 101.7 100.4 95.3 101.4 98.9 99.5 100.0 101.7 99.6 103.6 107.9 107.3 107.1

A50

BUSINESS ACTIVITY; CONSTRUCTION o JUNE 1976
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Industrial production
Ca­
In­
Nonag­
dustry pacity
utiliza­ Con­ ricul­
tion
struc­ tural
in mfg. tion
em­
(1967
con­
ploy­
Manu­ output tracts ment—
factur­ = 100)
Total i
ing

Market
Period

Products

Total

Final
Inter­
Con­ Equip­ mediate
Total sumer ment
goods

Total

Mate­
rials

Manu­
facturing 2

Prices4

Em­
ploy­
ment

Pay­
rolls

Total
retail
sales3

Con­
sumer

Whole­
sale
com­
modity

76.9
79.6
80.3
78.0
81.0

92.9
93.9
92.2
83.9
88.1

61.1
64.6
65.4
60.3
67.8

59
61
64
64
69

80.2
81.4
84.3
86.6
87.3

87.8
90.7
93.3
94.6
94.8

68.6
70.2
78.1
86.1
89.4

82.4
82.1
84.4
86.1
88.6

88.0
84.5
87.3
87.8
89.3

68.8
68.0
73.3
76.0
80.1

70
70
75
79
83

88.7
89.6
90.6
91.7
92.9

94.9
94.5
94.8
94.5
94.7

195
195
195
195
195

5
6
7
8
9

58.5
61.1
61.9
57.9
64.8

56.6
59.7
61.1
58.6
64.4

54.9
58.2
59.9
57.1
62.7

59.5
61.7
63.2
62.6
68.7

48.9
53.7
55.9
50.0
54.9

62.6
65.3
65.3
63.9
70.5

61.5
63.1
63.1
56.8
65.5

58.2
60.5
61.2
56.9
64.1

90.0
88.2
84.5
75.1
81.4

196
196
196
196
196

0
1
2
3
4

66.2
66.7
72.2
76.5
81.7

66.2
66.9
72.1
76.2
81.2

64.8
65.3
70.8
74.9
79.6

71.3
72.8
77.7
82.0
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

196
196
196
196
196

5
6
7
8
9

89.2 88.1 86.8 93.0 78.7 93.0
97.9 96.8 96.1 98.6 93.0 99.2
100.0 100.0 100.0 100.0 100.0 100.0
105.7 105.8 105.8 106.6 104.7 105.7
110.7 109.7 109.0 111.1 106.1 112.0

91.0
99.8
100.0
105.7
112.4

89.1
98.3
100.0
105.7
110.5

89.0 93.2
91.9 94.8
87.9 100.0
87.7 113.2
86.5 123.7

92.3
97.1
100.0
103.2
106.9

93.9
99.9
100.0
101.4
103.2

88.1
97.8
100.0
108.3
116.6

90
97
100
109
114

94.5
97.2
100.0
104.2
109.8

96.6
99.8
100.0
102.5
106.5

197
197
197
197
197
197

0
1
2
3
4
5

106.6
106.
115.2
125.6
124.8
113.8

106.0
106.4
113.8
123.4
123.1
115.7

104.5
104.7
111.9
121.3
121.7
115.5

110.3 96.3 111.7
115.7 89.4 112.6
123.6 95.5 121.1
131.7 106.7 131.1
128. 111 .7 128.3
124.0 103.6 116.3

107.7
107.4
117.4
129.3
127.4
110.6

105.2
105.2
114.0
125.2
124.4
112.2

78.3
75.0
78.6
83.0
78.9
68.7

123.1
145.4
165.3
179.5
169.7
166.0

107.7
108.1
111.9
116.8
119.1
116.9

98.1
94.2
97.6
103.2
102.1
91.4

114.1
116.7
131.5
149.2
157.1
151.0

119
130
142
160
171
186

116.3
121.2
125.3
133.1
147.7
161.2

110.4
113.9
119.8
134.7
160.1
174.9

1975—Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.,

109.9
110.1
111 .1
112.2
114.2
116.2
116.7
117.6
118.4

113.0
113.4
114.2
115.3
115.8
116.9
116.9
118.0
119.3

112.6
113.7
114.5
115.7
115.9
116.9
117.0
117.9
119.0

C119.7
121.2
123.3
125.5
125.7
126.8
127.0
128.9
130.2

103.0
102.9
102.2
102.2
102.3
102.
102.6
102.5
103.5

113.4
112.4
112.8
114.3
115.4
116.6
117.0
118.5
120.3

105.2
104.9
106.0
106.8
111.5
115.1
116.5
116.8
116.8

107.9
108.2
109.5
110.6
112.8
114.7
115.8
116.3
117.0

189.0
67.0 182.0
174.0
165.0
r69.0 208.0
157.0
166.0
r70.7 148.0
137.0

116.1
116.2
115.9
116.4
116.9
117.4
117.8
117.8
118.1

89.9
90.1
89.8
89.7
90.9
92.0
92.5
92.4
93.0

144.7
144.7
146.4
148.7
154.2
157.0
158.4
158.9
162.3

179
184
186
190
191
189
192
192
198

158.6
159.3
160.6
162.3
162.8
163.6
164.6
165.6
166.3

172.1
173.2
173.7
175.7
176.7
177.7
178.9
178.2
178.7

1976—Jan..
Feb.1
Mar.
Apr.!
May.

119.5
120.8
121.7
122.3
123.2

120.2
121.4
121.4
122.0
122.8

119.6
120.7
120.7
121.4
122.6

130.9
132.0
131.
132.8
133.9

103.8
104.8
105.0
105.4
106.9

122.4
123.5
124.0
124.1
123.5

118.3
120.0
122.2
122.7
123.8

118.1 I
183.0
119.9
'71.9 170.0
120.3 J
185.0
121.1
189.0
122.0

118.7
119.0
119.4
119.9
120.0

94.0
94.3
94.9
95.5
95.2

165.9
165.4
167.4
165.9
170.9

197
201
204
204
201

166.7
167.1
167.5
168.2

179.3
179.3
179.6
181.3
181.8

1 Employees only: excludes personnel in the Armed Forces.
2 Production workers only. Revised back to 1973.
3 F.R. index based on Census Bureau figures.
4 Prices are not seasonally adjusted. Latest figure is final.
N o t e . —All series: Data are seasonally adjusted unless otherwise noted.
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept, of Commerce.

]
1
j
\

l
I
[
1

Construction contracts; McGraw-Hill Informations Systems Company,
F.W. Dodge Division, monthly index of dollar value of total construction
contracts, including residential, nonresidential, and heavy engineering.
Employment and payrolls: Based on Bureau of Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau of Labor Statistics data.

CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions of dollars, except as noted)
1975
Type of ownership and
type of construction

total construction contracts 1........
By type of ownership;
Public........................................
By type of construction:
Residential building 1..............
Nonresidential building...........
Nonbuilding.............................
’rivate housing units authorized. . .
(In thousands, S.A., A.R.)

1974

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

93,685 90,237 9,598 9,143 9,324 9,044 10,037 7,692 7,767 5,573 5,431 6,390 6,149 8,908 9,408
32,062 31,415 2,768 2,875 3,891 3,784 3,040 2,725 2,544 1,597 1,724 1,655 1,719 2,192 2,383
61,623 58,822 6,830 6,268 5,432 5,260 6,997 4,967 5,223 3,976 3,708 4,734 4,430 6,716 7,025
33,567 31,347 3,029 3,073 3,116 3,093 2,784 2,966 3,189 2,404 2,233 2,157 2,546 3,618 4,003
33,131 c30,577 2,987 2,877 3,169 3,165 2,666 2,526 2,629 1,859 1,865 1,939 1,996 2,561 2,741
26,987 28,313 3,582 3,193 3,040 2,786 4,587 2,200 1,949 1,309 1,334 2,294 1,608 2,729 2,664
1,074

925

837

912

949 1,042

1 Because of improved procedures for collecting data for 1-family homes,
some totals are not strictly comparable with those prior to 1968. To im­
prove comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.




1976

1975

995 1,095 1,079 1,085 1,028 1,120 1,134 '1,134 1,102

N o t e . — Dollar value of construction contracts as reported by the
McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data may differ from annual totals because adjustments
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.

JUNE 1976 □ CONSTRUCTION

A51

VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions of dollars)
Private
Nonresidential
Period

Total i
Total

197
197
197
197
197
197

0

1
2
3
4
5

Buildings
Total

Indus­
trial

Com­
mercial

Other
build­
ings 2

Public
Util­
ities
and
Other

Total

Mili­
tary

High­
way

Conser­
vation
and
develop­
ment

Other

52,546
59,488
65,953

25.564
30.565
33,200

26,982
28,923
32,753

6,021
6,783

7,761
9,401

4,382
4,971

10,759
11,598

25,536
27,605
27,964

695
808
879

8,591
9,321
9,250

2,124
1,973
1,783

14,126
15,503
16,052

94,855 66,759
109,950 80.079
124,085 93,901
135,953 103,444
135,481 97.079
130,779 89,897

31,864
43.267
54,288
57,635
47,044
42,880

34,895
36,812
39,613
45,809
50,035
47,017

6,518
5,423
4.676
6,243
7,902
7,847

9,754
11,619
13,464
15,453
15,945
12,810

5,125
5,437
5,898
5,888
5,797
5,587

13,498
14,333
15,575
18,225
20,391
20.773

28,096
29,871
30,184
32,509
38,402
40,882

718
901
1,087
1,170
1,185
1,396

9,981
10,658
10,429
10,506
12,083

1,908
2,095
2,172
2,313
2,782

15,489
16,217
16,496
18,520
22,352

10,963
12,227
12,538
12,536
13,164
14,152
14,076
12,497
13,590

2,769
3,132
3,481
3,417
3,387
3,442
3,194
3,554
3,858

21,080
20,907
24,763
23,371
23,577
25,322
23,623
24,306
22,452

78,082
87,093
93,917

196 7
196 8
196 9

Resi­
dential

1975—Apr..,
M ay..
June.
Ju ly ..
Aug..
Sept..
Oct...
Nov..
Dec...

121,027
121,698
126,884
128,977
132,144
137,551
135,805
138,047
137,987

84,742
84,252
84,982
88,344
90,633
92,973
93,419
96,029
96,526

37,574
38,531
40,431
43.267
45,271
46,125
47,080
48,324
49,133

47,168
45,721
44,551
45,077
45,362
46,848
46,339
47,705
47,393

7,500
8,197
7.677
7,714
7,621
7,889
7,470
7,750
7,548

12,765
12,109
11,756
11,978
12,586
12,431
12,506
12,634
12,401

5,636
5,268
5,415
5,319
5.611
5,843
5,589
5,771
5.611

21,267
20,147
19,703
20,066
19,544
20,685
20.774
21,550
21,833

36,285
37,446
41,902
40,633
41,511
44,578
42,386
42,018
41,461

1,473
1,180
1,120
1,309
1,383
1,662
1,493
1,661
1,561

1976—Jan ...
F eb .'
M ar..
Apr.p

134,335 97,032
134,129 99,289
139,527 101,785
138,259 99,820

48,964
49,518
51,824
52,414

48,068
49,771
49,961
47,406

7,464
8,168
7,605
6,859

11,854
13,152
13,238
11,994

5,764
6,363
6,031
5,495

22,986
22,088
23,087
23,058

37,303
34,840
37,742
38,439

1,534
1,705
1,510
1,698

1 Data beginning Jan. 1976 are not strictly comparable with prior data
2 Includes religious, educational, hospital, institutional, and other build­
ings.
because of change by Census Bureau in its procedure for estimating con­
struction outlays of State and local governments. Such governments
accounted for 86 per cent of all public construction expenditures in 1974.
N o t e . — Census Bureau data; monthly series at seasonally adjusted
annual rates.

PRIVATE HOUSING ACTIVITY
(In thousands of units)
Starts

Period
Total

1family

Under construction
(end of period)

Completions

2-ormore
family

Total

1family

2-ormore
family

Total

1family

2-ormore
family

New 1-family homes sold
and for sale 1

Mobile
home
ship­
ments

Median prices
(in thousands
of dollars) of
units

Units

Sold

For
sale
(end of
per­
iod)

461
487
490
448

Sold

For
sale

196
190
218
228

21.4
22.7
24.7
25.6

22.8
23.6
24.6
27.0

1,165
1,292
1,508
1,467

779
844
899
811

386
448
608
656

1,320
1,399

859
807

461
591

885

350

535

217
240
318
413

1970........................................ 1,434
1971........................................ 2,052
1972........................................ 2,357
1973........................................ 2,045
1974........................................ 1,338
1975........................................ 1,161

813
1,151
1,309
1,132
888
892

621
901
1,047
913
450
268

1,418
1,706
1,971
2,014
1,692
1,295

802
1,014
1,143
1,174
931
866

617
692
828
840
760
430

922
1,254
1,586
1,599
1,189
1,005

381
505
640
583
516
532

541
749
947
1,016
673
473

401
497
576
567
329
216

485
656
718
620
501

227
294
416
456
407
383

23.4
25.2
27.6
32.5
35.9

26.2
25.9
28.3
32.9
36.2

1975—Apr..............................
May.............................
June.............................
July..............................
Aug..............................
Sept.............................
Oct...............................
Nov.............................
Dec..............................

982
1,085
1,080
1,207
1,264
1,304
1,431
1,381
1,283

774
853
874
916
979
966
1,093
1,048
962

208
232
206
291
285
338
338
333
321

1,244
1,269
1,202
1,261
1,267
1,315
1,115
1,386
1,329

782
827
808
882
880
969
738
992
993

462
442
394
379
387
346
377
394
336

1,087
1,060
1,045
1,039
1,036
1 ,037
1,061
1,037
1,038

515
513
517
521
528
532
560
555
559

573
546
528
518
507
505
504
482
479

194
224
210
225
235
215
229
232
228

556
554
551
548
573
571
610
660
c641

388
383
379
381
378
384
389
381
378

39.2
39.5
37.9
38.6
38.2
39.7
40.7
41.1
42.2

36.7
36.9
37.2
37.4
37.8
38.2
38.4
38.6
38.9

1976—Jan...............................
Feb. »■...........................
Mar.............................
Apr.**...........................

1,236
1,547
1,433
1,372

957
1,295
1,119
1,067

279
252
314
305

1,213
1,294
1,348

926
945
1,007

287
349
341

1,041
1,053
1,058

562
582
594

479
471
464

263
287
244
246

570
677
555

380
386
391

41.5
42.8
43.7

39.1
39.3
39.6

1966........................................
1967........................................
1968........................................
1969........................................

1 Merchant builders only.
N o t e . — All

series except prices, seasonally adjusted. Annual rates for
starts, completions, mobile home shipments, and sales. Census data except




for mobile homes, which are private, domestic shipments as reported by
the Mobile Home Manufacturers’ Assn. and seasonally adjusted by
Census Bureau. Data for units under construction seasonally adjusted by
Federal Reserve.

A52

EMPLOYMENT □ JUNE 1976
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands of persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)

Period

Not in
labor force
(N.S.A.)

Total
labor
force
(S.A.)

Employed1
Total
Total

In nonagricultural
industries

In
agriculture

Unem­
ployed

Unemploy­
ment
rate2
(per cent;
S.A.)

0
1
2
3
4
5

140,182
142,596
145,775
148,263
150,827
153,449

54,280
55,666
56,785
57,222
57,587
58,655

85,903
86,929
88,991
91,040
93,240
94,793

82,715
84,113
86,542
88,714
91,011
92,613

78,627
79,120
81,702
84,409
85,936
84,783

75,165
75,732
78,230
80,957
82,443
81,403

3,462
3,387
3,472
3,452
3,492
3,380

4,088
4,993
4,840
4,304
5,076
7,830

4.9
5.9
5.6
4.9
5.6
8.5

1975—May.
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.,

153.051
153,278
153,585
153,824
154.052
154,256
154,476
154,700

59,101
57.087
56,540
57,331
59.087
58,825
59,533
59,812

94,950
94,747
95,249
95,397
95,298
95,377
95,272
95,286

92,769
92,569
93,063
93.212
93.128
93.213
93,117
93.129

84,519
84,498
84,967
85,288
85,158
85,151
85,178
85,394

80,991
81.148
81,528
81,824
81,646
81,743
81,877
82,158

3,528
3,350
3,439
3,464
3,512
3,408
3,301
3,236

8,250
8,071
8,096
7,924
7,970
8,062
7,939
7,735

8.9
8.7
8.7
8.5
8.6
8.6
8.5
8.3

1976—Ja n ..
Feb..
Mar.
Apr.
May

154,915
155,106
155,325
155,516
155,711

60,110
60,163
60,065
59,898
59,988

95,624
95,601
95,866
96,583
96,699

93,484
93,455
93,719
94,439
94,557

86,194
86,319
86,692
87,399
87,697

82,851
83.149
83,513
83,982
84,368

3,343
3,170
3,179
3,417
3,329

7,290
7,136
7,027
7,040
6,860

7.8
7.6
7.5
7.5
7.3

197
197
197
197
197
197

1 Includes self-employed, unpaid family, and domestic service workers.
2 Per cent of civilian labor force.
N ote.—Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. Monthly data relate

to the calendar week that contains the 12th day; annual data are averages
of monthly figures. Description of changes in series beginning 1967 is
available from Bureau of Labor Statistics.

EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands of persons)
Contract
construc­
tion

Period

Total

Manufac­
turing

1970..........................................................
1971..........................................................
1972..........................................................
1973.........................................................
1974.........................................................
1975.........................................................

70,920
71,216
73,711
76,896
78,413
76,987

19,349
18,572
19,090
20,068
20,046
18,342

623
603
622
644
694
745

3,536
3,639
3,831
4,015
3,957
3,462

1975—May..............................................
June..............................................
July..............................................
Aug...............................................
Sept..............................................
Oct................................................
Nov...............................................
Dec...............................................

76,510
76,343
76,679
77,023
77,310
77,555
77,574
77,796

18,162
18,100
18,084
18,254
18,417
18,493
18,482
18,568

738
741
743
749
752
774
766
769

1976—Jan................................................
Feb................................................
Mar..............................................
Apr.**............................................
May2*.......................................... .

78,179
78,368
78,630
78,942
78,999

18,722
18,763
18,877
18,969
18,928

1975—May..............................................
June..............................................
July..............................................
Aug...............................................
Sept..............................................
Oct................................................
Nov...............................................
Dec...............................................

76,689
77,183
76,439
76,900
77,614
78,193
78,339
78,527

1976—Jan................................................
Feb...............................................
Mar..............................................
A p r^ ............................................
MayP............................................

77,091
77,339
77,906
78,666
79,192

Transporta­
tion and
public
utilities

Trade

Finance

Service

Govern­
ment

4,504
4,457
4,517
4,644
4,696
4,499

15,040
15,352
15,975
16,674
17,017
16,949

3,687
3,802
3,943
4,091
4,208
4,473

11,621
11,903
12,392
13,021
13,617
13,996

12,561
12,887
13,340
13,739
14,177
14,771

3,439
3,392
3,395
3,415
3,432
3,402
3,409
3,406

4,491
4,469
4,464
4,466
4,467
4,476
4,496
4,477

16,857
16,877
16,984
17,016
17,045
17,043
17,010
17,080

4,208
4,202
4,203
4,218
4,239
4,246
4,248
4,264

13,889
13,871
13,990
14,054
14,113
14,157
14,188
14,229

14,726
14,691
14,816
14,855
14,845
14,964
14,975
15,003

764
763
770
773
771

3,428
3,375
3,366
3,392
3,402

4,494
4,517
4,498
4,512
4,497

17,233
17,326
17,386
17,444
17,457

4,266
4,266
4,276
4,290
4,285

14,307
14,360
14,422
14,488
14,559

14,965
14,998
15,035
15,074
15,100

18,071
18,255
18,007
18,450
18,694
18,687
18,635
18,584

740
756
758
763
758
763
763
763

3,439
3,555
3,605
3,688
3,659
3,620
3,522
3,338

4,487
4,523
4,504
4,493
4,503
4,503
4,509
4,477

16,819
16,971
16,936
16,959
17,084
17,136
17,313
17,737

4,208
4,248
4,266
4,273
4,243
4,238
4,235
4,243

13,986
14,079
14,144
14,162
14,113
14,185
14,174
14,158

14,939
14,796
14,219
14,112
14,560
15,061
15,188
15,227

18,495
18,545
18,679
18,808
18,837

756
752
759
767
773

3,061
3,014
3,103
3,263
3,402

4,440
4,445
4,462
4,476
4,493

17,026
16,926
17,028
17,295
17,423

4,223
4,228
4,246
4,273
4,285

14,049
14,188
14,307
14,488
14,661

15,041
15,241
15,322
15,296
15,318

Mining

SEASONALLY ADJUSTED

NOT SEASONALLY ADJUSTED

N ote.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period
that includes the 12th of the month. Proprietors, self-employed persons,




domestic servants, unpaid family workers, and members of Armed
Forces are excluded.
Beginning with 1973, series has been adjusted to Mar. 1974 bench­
mark.

JUNE 1976 □ PRICES

A53

CONSUMER PRICES
(1967 = 100)
Housing
All
items

Food

51.3
38.8
44.1
53.9
88.7
94.5

48.3
30.6
38.4
50.7
88.0
94.4

53.7
59.1
90.2
94.9

1966.......................... 97.2
1967.......................... 100.0
1968.......................... 104.2
1969.......................... 109.8

99.1
100.0
103.6
108.9

97.2
100.0
104.2
110.8

1970.......................... 116.3
1971......................... 121.3
1972......................... 125.3
1973......................... 133.1
1974......................... 147.7
1975......................... 161.2

114.9
118.4
123.5
141.4
161.7
175.4

1975—Apr................
M ay..............
June..............
July...............
Aug...............
Sept...............
Oct................

158.6
159.3
160.6
162.3
162.8
163.6
164.6
165.6
Dec................ 166.3
166.7
167.1
167.5
168.2

Period

1929 ........................
1933..........................
1941..........................
1945.........................
1960..........................
1965..........................

1976—Jan................
Feb................
Mar...............
Apr...............

Health and recreation

Homeownership

Fuel
oil
and
coal

Gas
and
elec­
tricity

76.0
54.1
57.2
58.8
91.7 * 86.3'
96.9 92.7

40.5
48.0
89.2
94.6

81.4
79.6
98.6
99.4

98.2 96.3
100.0 100.0
102.4 105.7
105.7 116.0

97.0
100.0
103.1
105.6

118.9
124.3
129.2
135.0
150.6
166.8

110.1
115.2
119.2
124.3
130.6
137.3

128.5
133.7
140.1
146.7
163.2
181.7

171.2
171.8
174.4
178.6
178.1
177.8
179.0
179.8
180.7

164.7
165.3
166.4
167.1
167.7
168.9
169.8
171.3
172.2

135.9
136.4
136.9
137.3
138.0
138.4
139.3
139.9
140.6

180.8
180.0
178.7
179.2

173.2
173.8
174.5
174.9

141.2
142.1
142.7
143.2

Total

Rent

Fur­ Apparel Trans­
nish­
and
porta­
ings upkeep tion
and
opera­
tion

Total

Med­
ical
care

Per­
sonal
care

mg
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

93.4
100.0
106.1
113.4

97.1
100.0
104.2
109.3

97.5
100.0
104.7
108.7

97.2
100.0
104.6
109.1

110.1
117.5
118.5
136.0
214.6
235.3

107.3
114.7
120.5
126.4
145.8
169.6

113.4
118.1
121.0
124.9
140.5
158.1

116.1
119.8
122.3
126.8
136.2
142.3

112.7
118.6
119.9
123.8
137.7
150.6

116.2
122.2
126.1
130.2
140.3
153.5

120.6
128.4
132.5
137.7
150.5
168.6

113.2
116.8
119.8
125.2
137.3
150.7

113.4
119.3
122.8
125.9
133.8
144.4

116.0
120.9
125.5
129.0
137.2
147.4

179.4
180.1
181.4
182.3
182.8
183.9
184.8
186.8
187.8

229.0
230.2
230.6
234.1
235.7
238.7
243.3
246.5
248.7

166.3
167.3
169.4
170.4
171.2
174.0
174.2
176.8
179.0

156.8
157.4
158.1
158.3
158.8
160.1
160.9
161.6
162.0

141 .3
141.8
141.4
141.1
142.3
143.5
144.6
145.5
145.2

146.2
147.4
149.8
152.6
153.6
155.4
157.4
157.6

152.1
152.6
153.2
154.0
154.6
155.4
156.3
156.5
157.5

165.8
166.8
168.1
169.8
170.9
172.2
173.5
173.3
174.7

149.5
149.9
150.3
151.2
151.4
152.1
152.9
153.6
154.6

143.5
143.8
144.1
144.4
144.7
146.0
146.6
147.0
147.5

146.8
147.1
147.3
147.6
148.1
148.0
148.5
148.9
149.8

188.8
188.6
188.7
188.9

248.9
249.4
247.6
246.6

179.5
181.9
183.7
184.4

163.7
165.2
166.6
167.4

143.3
144.0
145.0
145.7

158.1
158.5
159.8
161.3

158.6
159.7
160.6
161.4

176.6
178.8
180.6
181.6

155.7
157.0
157.4
158.3

148.2
148.5
149.0
149.5

150.5
151.3
151.8
152.5

156.1

N ote.—Bureau of Labor Statistics index for city wage earners and clerical workers.

WHOLESALE PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities

Period

Pro­
All
com­ Farm cessed
modi­ prod­ foods
ties
ucts
and
feeds

Total

Tex­
Rub­ Lum­ Paper, Met­
Fuel, Chem­
als,
ber,
tiles, Hides,
icals, ber,
etc.
etc.
etc.
etc.
etc.
etc.
etc.
etc.

Ma­
Trans­
chin­ Furni­ Non­
me­ porta­ Mis­
ery
tallic
ture,
tion cella­
and
min­ equip­ neous
equip­ etc.
erals
ment1
ment

1960.......................
1965.......................

94.9
96.6

97.2
98.7

89.5
95.5

95.3
96.4

99.5
99.8

1966.......................
1967.......................
1968.......................
1969.......................

99.8
100.0
102.5
106.5

105.9
100.0
102.5
109.1

101.2
100.0
102.2
107.3

98.5
100.0
102.5
106.0

100.1
100.0
103.7
106.0

103.4 97.8 99.4 97.8
100.0 100.0 100.0 100.0
103.2 98 9 99.8 103 4
108.9 100.9 99.9 10513

100.2 98.8
100.0 100.0
113 3 101 1
125.3 104.0

1970.......................
1971.......................
1972.......................
1973.......................
1974.......................
1975.......................

110.4
113.9
119.1
134.7
160.1
174.9

111.0
112.9
125.0
176.3
187.7
186.7

112.0
114.3
120.8
148.1
170.9
182.6

110.0
114.0
117.9
125.9
153.8
171.5

107.2
108.6
113.6
123.8
139.1
137.9

110.1
114.0
131.3
143.1
145.1
148.5

105.9
114.2
118.6
134.3
208.3
245.1

102.2
104.2
104.2
110.0
146.8
181.3

108.6
109.2
109.3
112.4
136.2
150.2

113.7
127.0
144.3
177.2
183.6
176.9

108.2
110.1
113.4
122.1
151.7
170.4

116.7
119.0
123.5
132.8
171.9
185.9

111.4
115.5
117.9
121.7
139.4
161.4

107.5
109.9
111.4
115.2
127.9
139.7

113.3
122.4
126.1
130.2
153.2
174.0

104.5
110.3
113.8
115.1
125.5
141.5

109.9
112.8
114.6
119.7
133.1
147.7

1975—M ay............
Ju n e............
July.............
Aug.............
Sept.............
Oct..............
Nov.............
Dec.............

173.2
173.7
175.7
176.7
177.7
178.9
178.2
178.7

184.5
186.2
193.7
193.2
197.1
197.3
191.7
193.8

179.0
179.7
184.6
186.3
186.1
186.2
182.6
181.0

170.3
170.7
171.2
172.2
173.1
174.7
175.4
176.1

135.2
135.9
136.8
137.6
138.4
141.3
143.2
144.0

147.7
148.7
149.3
149.3
151.3
152.4
154.4
154.6

238.8
243.0
246.6
252.4
254.9
256.5
257.0
258.0

182.1
181.2
181.4
182.1
182.2
182.3
182.9
183.4

148.9
148.6
150.1
150.0
150.8
151.5
151.8
151.9

183.0
181.0
179.6
179.7
179.9
179.1
178.3
183.1

169.8
169.8
170.0
170.0
170.3
170.9
171.3
173.1

185.1
184.5
183.4
184.3
185.5
187.2
187.0
187.1

160.4
161.0
161.7
162.2
163.1
164.1
165.3
165.8

138.6
139.0
139.2
139.8
140.1
141.1
141.5
142.0

173.1
173.3
174.7
175.8
176.1
177.1
177.7
178.0

139.9
140.1
140.1
140.5
141.1
146.6
147.2
147.5

147.5
147.5
147.7
147.8
148.2
147.6
148.6
151.1

1976—Jan.............. 179.3 192.8 179.4
Feb.............. 179.3 191.0 176.4
Mar............. 179.6 187.2 175.8
Apr............. 181.3 192.9 178.0
M ay............ 181.8 192.6 179.9

177.3
178.0
178.9
180.0
180.4

145.1
146.3
146.7
147.4
147.0

157.5
159.9
162.0
165.4
169.6

257.3
255.7
255.7
256.9
257.2

184.2
184.9
185.6
187.1
186.9

152.4
154.2
155.5
156.7
157.1

190.5
196.0
202.3
203.3
202.3

174.8
175.8
176.9
178.5
179.2

187.7
189.2
190.6
192.9
194.0

167.0
167.7
168.2
168.9
169.4

143.1
143.4
143.9
144.4
144.8

181.1
181.3
182.5
185.2
185.6

148.7
148.8
149.1
149.2
149.0

151.8
152.1
152.6
152.4
152.7

i Dec. 1968 = 100.




90.8
94.3

96.1 101.8 103.1
95.5 99.0 95.9

95.3
95.9

98.1
96.2

92.4
96.4

92.0
93.9

99.0
96.9

93.0
95.9

97.2
97.5

98.8 96.8 98.0 98.4
97.7
100.0 100.0 100.0 100.0
100.0
102.6 103.2 102.8 103.7
102.2
108.5 106.5 104.9 107.7 100.8 105.2

A54

NATIONAL PRODUCT AND INCOME □ JUNE 1976
GROSS NATIONAL PRODUCT
(In billions of dollars)

Item

1950

1970

1972

1973

1974

1975

1975
I

Gross national product......................................................

286.2
279.4

II

1976
III

IV

I

982.4 1,171.1 1,306.3 1,406.9 1,498.9 1,433.6 1,460.6 1,528.5 1,572.9 1,619.2
978.6 1,161.7 1,288.8 1,397.2 1,513.5 1 ,458.4 1,490.2 1,530.6 1 ,574.9 1,6 0 3 .8

Personal consumption expenditures..................................
Durable goods...............................................................

192.0
30.8
98.2
63.0

618.8
84.9
264.7
269.1

733.0
111.2
299.3
322.4

808.5
122.9
334.4
351.3

885.9
121.9
375.7
388.3

963.8
128.1
409.8
426.0

926.4
118.9
394.1
413.4

950.3
123.8
404.8
421.6

131.8
416.4
429.2

Gross private domestic investment....................................

53.8

140.8

188.3

137.0
100.5

178.8
116.8

220.5

212.2

47.0
27.1

182.6

168.7

161.4

197.3
148.5

193.5
149.3

194.9

205.4

232.2

191.1
146.1

197.1
146.7

207.4
151.9

216.7
158.1

Structures...............................................................
Producers’ durable equipment.............................
Residential structures................................................
Nonfarm.................................................................
Change in business inventories....................................
Nonfarm.....................................................................

9.3
17.8
19.9
18.7
6.8
6.0

Net exports of goods and services....................................
Exports...........................................................................
Imports...........................................................................

1.9
13.9
12.0

Government purchases of goods and services...................
Federal...........................................................................
National defense........................................................
State local.......................................................................
Gross national product in 1972 dollars.............................

37.7
62.8
36.6
35.1
3.8
3.7

203.0
136.5

202.5
147.9

54.4
52.7
93.5
95.8
54.6
48.7
52.2
46.8
9.7 - 1 4 .6
11.6 -1 6 .5

54.9
51.1
94.4
95.0
44.2
45.0
42.6
43.1
-2 4 .8 - 2 9 .6
-2 3 .3 - 2 9 .6

911.4 1,001.0 1,029.6

137.6
423.7
439.7

145.9
430.8
452.9

42.5
74.3
62.0
60.3
9.4
8.8

49.0
87.5
66.5
64.7
17.5
14.1

3.9
62.5
58.5

- 3 .3
72.7
75.9

7.4
101.5
94.2

7.7
144.2
136.5

21.3
147.8
126.5

17.3
148.2
130.9

24.2
140.7
116.4

22.1
148.5
126.4

21.7
153.8
132.1

8.2
153.1
145.0

38.5

218.9

253.1

269.9

301.1

331.2

321.2

334.1

344.8

349.2

73.5
28.6
151.0

111.7

73.5
22.1
123.2

102.0

324.7

14.0
4.7
19.8

82.1
37.1
205.5

84.9
39.3
209.9

129.9

131.1

18.7

95.6

102.1

73.4
28.6
168.0

77.4
34.3
189.4

123.2

84.0
39.2
208.0

119.4

81.4
38.0
201.9

119.2

51.2
95.6
50.4
48.2
- 2 .1
- 5 .7

124.2

53.6
98.3
55.4
53.3
-2 .0
- 7 .5

87.4
42.5
214.8

55.5
102.6
58.3
56.5
15.5
11.3

87.0
44.1
218.1

533.5 1,075.3 1,171.1 1,233.4 1,210.7 1,186.1 1,158.6 1,168.1 1,201.5 1,216.2 1,241.2

N o t e . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
see the Survey o f Current Business, Jan. 1976.

NATIONAL INCOME
(In billions of dollars)

Item

1950

1970

1972

1973

1974

1975

1975
I

Compensation of employees..............................................

IV

I

798.4

951.9 1,067.3 1,141.1 1,208.1 1,155.2 1,180.8 1,232.5 1,262.6 1,301.3

154.8

609.2

715.1

797.7

873.0

921.4

897.1

905.4

928.2

955.1

982.6

147.0

546.5

633.8

700.9

763.1

801.6

781.0

787.6

807.3

631.9
22.8
152.6

830.7
650.5
23.6
156.5

851.5

120.9

124.4

131.1

60.6
63.8

65.0
66.1

430.5
20.7
95.3

7.8
4 .2

62.7

3.7

30.7
32.0

39.4
42.0

49.3
47.5

Proprietors’ income with inventory valuation and
capital consumption adjustments...................................
Business and professional.........................................
Farm...........................................................................

38.4
24.9
13.5

65.1
51.2
13.9

76.1
58.1
18.0

Rental income of persons with capital consumption
adjustment............................... ..................................

Supplements to wages and salaries ................................

III

236.2

124.4
5.3
17.4

Government civilian..................................................

II

1976

496.2
22.0
115.6
81.4

552.3
22.1
126.5

603.0
22.3
137.7

627.3
23.0
151.3

611.7
22.9
146.4

615.0
22.8
149.7

96.8

110.0

119.8

116.1

117.8

57.1
59.0

57.5
60.3

668.8
23.6
159.0

55.5
54.5

58.5
61.3

91.7
59.3
32.4

85.1
59.5
25.6

83.3
58.7
24.6

79.6
58.6
21.0

78.6
58.5
20.1

88.0
58.7
29.3

87.1
58.9
28.2

85.0
59.7
25.3

21.3

21.0

21.1

20.8

20.5

20.9

22.0

22.7

58.9
62.0

7.1

18.6

21.5

Corporate profits and inventory valuation adjustment
and without capital consumption adjustment.................

37.6

66.4

89.6

98.6

93.6

106.3

83.4

101.6

119.6

119.3

129.4

Profits before tax ...........................................................

42.6

71.5

96.2

117.0

132.1

97.1

108.2

129.5

132.4

34.5

41.5

48.2

52.6

117.1

79.5

37.5

41.6

68.8

59.6

32.1
27.5

66.6

50.1
78.8
33.5
45.3

79.9

140.8
56.5
84.3

33.1
46.8

33.3
51.0

Profits tax liability....................................................
Profits after tax ..........................................................
Dividends...............................................................

17.9
24.7

8.8
15.9

14.1

24.6
30.0

27.8
40.9

31.1
48.4

45.7
71.4
32.8
38.6

37.0
22.9

54.6

32.6
34.0

52.5

Inventory valuation adjustment...................................

- 5 .0

- 5 .1

- 6 .6

-1 8 .4

-3 8 .5

-1 0 .8

- 1 3 .7

- 6 .6

- 9 .9

-1 3 .1

- 1 1 .4

Capital consumption adjustment.................................

- 4 .0

1.5

2.5

1.6

- 2 .3

- 5 .7

- 4 .5

- 5 .0

- 6 .5

- 6 .6

- 7 .6

Net interest........................................................................

2.3

37.5

47.0

56.3

70.0

81.6

78.7

79.7

82.2

85.7

89.2

N o t e . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table above.




JUNE 1976 □ NATIONAL PRODUCT AND INCOME

A55

RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions of dollars)

Item

1970

1950

1972

1973

1974

1975

1976

1975
II

286.2

Gross national product.....................................................
Less: Capital consumption allowances with capital

Plus: Subsidies less current surplus of government

IV

982.4 1,171.1 1,306.3 1,406.9 1,498.9 1,433.6 1,460.6 1,528.5 1,572.9 1,619.2
90.8
94.0
4.0
- 2 .1

23.9
23.4
.8
2.0

consumption adjustment..................................
Indirect business tax and nontax liability..............
Business transfer payments...................................
Statistical discrepancy............. ..............................

III

105.4
111.0
4.7
1.7

117.1
120.2
5.2
.4

134.0
127.3
5
- .6

152.0
137.3
6.3
- 2 .9

145.4
131.6
6.2
- 3 .2

149.5
135.2
6.3
- 8 .9

154.7
140.0
6.4
- 3 .2

158.5
142.2
6.5
5.0

3.6

3.7

.7

1.9

1.6

2.2

1.9

1.9

163.1
142.8
6.6
5.3

enterprises...........................................................

.1

2.7

Equals: National income..................................................

236.2

798.4

33.7
2.3
7.1

67.9
37.5
58.7

92.1
47.0
73.6

100.2
56.3
91.5
- .1

91.3
70.7
102.9
-.5

100.7
81.6
108.3

78.9
78.7
106.0

96.6
79.7
106.6

113.1
82.,2
108.9

112.7
85.7
111.8

121.8
89.2
118.4

14.4
8.9

75.9
64.3
22.9
4.0

99.4
74.6
24.6
4.7

113.5
88.4
27.8
5.2

134.5
106.5
31.1
5.8

168.7
120.5
32.8
6.3

157.7
116.0
32.1
6.2

169.4
117.6
32.6
6.3

172.4
121.2
33.5
6.4

175.2
127.4
33.1
6.5

181.5
131.9
33.3
6.6

Equals: Personal income............................

226.1

801.3

Less: Personal tax and nontax payments.

20.6

115.3

141.2

151.2

171.2

Equals: Disposable personal income..........

205.5

685.9

801.3

903.1

983.6 ,076.7 ,024.0 ,081.7 ,087.1

Less: Personal outlays.....................................................

194.7
192.0
2.3
.4

635.4
618.8
15.5
1.1

751.9
733.0
17.9
1.0

830.4
808.5
20.6
1.2

909.5
885.9
22.6
1.0

Less: Corporate profits with inventory valuation and

capital consumption adjustments......................
Net interest.............................................................
Contributions for social insurance.......................
Wage accruals less disbursements.........................

Plus: Government transfer payments to persons.

Personal interest income..............................
Dividends......................................................
Business transfer payments..........................

Personal consumption expenditures.................
Interest paid by consumer to business.............
Personal transfer payments to foreigners (Net)

N o t e . —Dept,

942.5 ,054.3 ,154.7 ,245.9 ,203.6 ,223.8 ,261.7 ,294.5 ,325.2
169.2

987.8
963.8
23.1
1.0

179.6

950.4
926.4
23.0
1.0

142.1

974.2
950.3
22.8
1.1

174.6

180.5

184.4

,114.0 ,140.7

,001.3 ,025.4 ,054.5
977.4 ,001.0 ,029.6
23.8
23.0
23.4
.9
1.0
1.0

10.8

50.6

49.4

72.7

74.0

88.9

73.6

107.5

85.9

88.6

86.2

361.9

741.6

801.3

856.0

843.5

856.7

831.6

869.8

858.2

867.3

0.3

Equals: Personal saving....................................................
Disposable personal income in (1972) dollars.

- .1

951.9 1,067.3 1,141.1 1,208.1 1,155.2 1,180.8 1,232.5 1,262.6 1,301.3

of Commerce estimates. Quarterly data seasonally adjusted totals at annual rates. See also

N o te

to table at top of opposite page.

PERSONAL INCOME
(In billions of dollars)

Item

1974

Apr.
Total personal income.
Wage and salary disbursements...........

Commodity-producing industries..
Manufacturing only ....................
Distributive industries.....................
Service industries.............................
Government.....................................

1976

1975

1975
May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar. Apr.p

1154.7 1245.9 1209.0 1217.2 1245.2 1244.0 1262.4 1278.7 1287.4 1295.9 1300.2 1313.6 1325.9 1336.0 1347.6
763.6 801.6 782.7 787.4 792.7 797.4
815.6 824.1 831.2 836.8 846.0 851.6 856.8 862.8
273.7 273.6 265.8 267.0 268.8 270.9 275.6 279.5 281.7 283.2 286.9 291.2 293.0 295.4 297.8
211.2 211.2 204.9 205.6 207.2 208

213.2 216.6 218.7 219.7 223.3 226.9 228.4 230.3 232.3

184.3 195.1 190.9 191.7 192.9 193.9 197.7 198.2 200.2 202.4 202.9 205.8 207.2 208.0 209.9
145.0 158.6 154.5 156.1 157.4 158.2 160.3 161.5 163.1 165.3 165.7 167.1 168.8 170.0 171.2
160.6 174.3 171.5 172.6 173.6 174.4 175.2 176.4 179.0 180.3 181.2 181.9 182.6 183.3 183.9

Other labor income.............................

54.5

61.3

59.8

60.3

60.8

61.4

62.0

62.6

63.2

63.8

64.4

65.2

66.1

65.1

65.5

Proprietors’ income with inventory
valuation and capital consumption
adjustments.......................................
Business and professional................
Farm .................................................

85.1
59.5
25.6

83.3
58.7
24.6

77.0
58.5
18.5

78.7
58.6
20.1

80.3
58.6
21.7

84.5
58.7
25.8

88.0
58.7
29.3

91.5
58.8
32.7

89.4
58.9
30.5

87.1
58.8
28.3

84.7
58.9
25.8

84.7
59.1
25.6

85.0
59.7
25.3

84.9
60.3
25.0

87.0
60.7
26.3

Rental income of persons with capital
consumption adjustment.................

21.0

21.1

20.7

20.5

20.2

20.5

21.0

21.3

21.8

22.0

22.2

22.5

22.7

22.9

23.1

Dividends.

31.1

32.8

32.4

32.6

32.9

33.2

33.5

33.9

33.8

33.8

31.7

33.4

33.3

33.2

33.8

Personal interest income.

106.5 120.5 116.6 117.5 118.6 119.7 121.2 122.9 125.1 127.9 129.0 130.4 131.8 133.6 135.1

Transfer payments..........

140.4 175.0 168.6 169.3 189.0 176.8 178.1 181.3 180.6 181.4 182.9 184.7 188.9 190.8 192.0

Less: Personal contributions for social

insurance...................................

Nonagricultural income.
Agricultural income

47.4

49.8

48.9

49.1

49.3

49.5

50.0

50.4

50.7

51.2

51.6

53.3

53.4

53.6

N ote.—D ept, o f Commerce estimates. Monthly data seasonally adjusted totals at annual rates. See also N ote to table at top o f opposite page.




53.9

1119.1 1210.2 1179.7 1186.2 1212.5 1207.2 1222.1 1234.8 1245.6 1256.3 1262.9 1276.3 1288.9 1299.2 1309.5
35.6 35.7 29.3 31.0 32.7 36.8 40.3 43.9 41.8 39.7 37.3 37.3 37.1 36.8 38.1

A56

FLOW OF FUNDS □ JUNE 1976
SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions o f dollars)

11975 *■
Transaction category, or sector

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975r

HI

H2

Credit market funds raised by nonfinancial sectors
98.2 147.4 169.4 187.4 180.1 204.6 186.7 222.2
92.4 135.9 158.9 180.1 176.2 194.6 176.2 212.8

1
2

67.9
66.9

82.4
80.0

96.0
96.0

3
4
5

3.6
2.3
1.3

13.0
8.9
4.1

13.4 - 3 .7
10.4 - 1 .3
3.1 - 2 .4

12.8
12.9
- .1

95.5
3.9

85.4 121.9 152.1 177.7 168.1 119.4 102.6 135.9
7.2
3.8
9.9 10.5
9.4
5.8 11.5 10.5
82.7 117.3 147.8 170.1 152.7 106.3
4.1
7.4
5.7 11.4 10.9
9.9

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

P r iv a te d o m e s tic n o n fin a n cia l s e c to r s ........

91.8
87.9

64.3
1.0

69.4
2.4

82.6
*

63.3

67.0

82.6

62.7
1.3

6.45
2.4

79.7
- .2

91.8
3.4

61.5

63.0

79.9

88.4

38.2
5.6
10.2

11.7
3.1
5 .7
1 .8

44.5
7.8
14.7
11.5
3 .6
4 .7
2 .3

91.6

49.5
9.5
12.9

49.6
9.9
12.0

30.4
10.0
13.6
1.8
5.0

25.5
26.0
- .5

11.2
19.8

12.8
5 .8
5 .3
1.8

17.6
18.8

85.2
85.8
- .6

26.1
8.8
10.0
2 .0

82.7

31.2
2 .9
9 .4
5 .8

17.4
19.7

97.8 101.7
15.4 17.1
27.2 35.3

39.6
10.3
14.8
2 .6

43.3
8 .4
17.0
4 .4

31.7
7.8
11.5
4 .9

36.1
2 .4
11.0
5 .6

20.3
6.0
6.7
3.0
4.6

79.7
9.8
30.0
2.8
5.6
31.6

91.8
10.7
31.7
3.2
7.4
38.9

82.7 117.3 147.8 170.1 152.7 106.3
11.3 17.8 14.2 12.3 16.6 13.2
23.4 39.8 63.1 72.8 44.0 45.2
3.2
8.6
7.8
4.1
9.2
4.9
7.2
5.3
8.7 10.4
9.3
2.9
39.5 46.8 55.3 67.2 77.1 35.8

62.7
6.3
22.7
3.1
5.4
25.3

65.4
7.9
19.3
3.6
5.0
29.6

Corporate equities..............................................

1.5
- .3

4.0
.1

2.8
.2

3.7
.5

2.7
.1

4.6
*

1.8
.1

4 .0

2 .7

3 .2

2 .7
.9

4 .6

- .3
.8
1.3

.9
1.6
.3
1.8

2.8

3.2

1.2
- .3
.5
2.6

1.1
- .5
- .2
2.2

1.0
-.2
.3
2.1

- .4

1.2

-1 .1

.4

68.3
4.0

81.3
11.8

97.1 91.4
14.6 - 4 .1

93.0
10.3

13.7
9.2

38.8
10.4
15.5
3.0
9.9

O ther............................................................

92.1

14.4
12.2

15.7
4 .7
5 .3
1 .9

22.6
11.2
7.8
- 1 .2
4.8

84.1
85.4
- 1 .2

96.4

15.1
3 .4
6 .4
2 .2

By borrowing sector...........................................
State and local governments..........................
Households......................................................
F arm ................................................................
Nonfarm noncorporate...................................
Corporate........................................................

37 Memo: U.S. Govt, cash balance...............................
Totals net of changes in U.S. Govt, cash balances:.
38 Total funds raised......................................................
By U.S. Government..............................................
39

12.0
12.0
*

77.0 105.8 136.9 162.7 148.6
56.7 83.2 93.8 96.1 92.9

18.5
4.5
9.8
1.7
2.6

- .2
- .1
1 .3

9.7
7.7
2.0

79.7 110.4 141.6 170.4 164.2 109.4

23.3
6.4
10.9
1.1
5.0

Bonds...............................................................
Bank loans n.e.c..............................................
Open market paper.........................................
U.S. Government loans..................................

17.3
13.9
3.4

43.0
19.2
18.9
- .5
5.5

66.6
22.9
35.8
- .4
8.3

55.6 - 1 .3 -1 9 .1
9.6
5.3 - 1 .5
27.3 -1 1 .3 - 2 0 .2
6.6 - 2 . 0 - 1 .5
12.1
6.7
4.2

86.3
86.4
- .1

1
2
3
4r
5

6
7
8
119.4 9
9.5 10
109.9 11
93.8 12
13.8 13
19.1 14
41.0 15
1 .9 16
12.6 17
5 .4 18
16.1 19
12.0 20
- 2 . 5 21
- 2 . 5 22
9.2 23
126.5

93.0 119.4 24
14.8 11.6 25
36.2 54.1 26
8.2 10.2 27
5.4 28
.2
33.6 38.1 29

15.4
- .3

13.0
*

15.7
2.2

9.6
.1

16.4
- .1

1.0
2.9
- 1 .0
1.8

7.5
- .2
7.7
1.0
2.8
2.2
1.7

13.0

9 .5

16.6

- .3

- 1 .7

- 4 .6

2.9

2.7

3.1

37

95.5 144.2 169.7 189.0 184.7 201.7 184.0 219.1
10.0 22.3 17.6 11.4 16.6 82.3 81.4 83.2

38
39

4.3
- .4
4 .7

4.7
7.1
1.7

6.3
5.9
1.4
4.0
- . 1 - 1 .2
2.8
3.4

6.7
6.6
1.0
2.3

30
31
32
33
34
35
36

Credit market funds raised by financial sectors
1 Total funds raised by financial sectors.......................
2
Sponsored credit agencies......................................
3
U.S. Government securities...............................
Loans from U.S. Government...........................
4
Private financial sectors.........................................
5
Corporate equities..............................................
6
7
Debt instruments..................................................
Corporate bonds.............................................
8
Mortgages........................................................
9
10
Bank loans n.e.c..............................................
11
Open market paper and RP’s ........................
12
Loans from FHLB’s .......................................
13 Total funds raised, by sector......................................
14
Sponsored credit agencies......................................
15
Private financial sectors.........................................
16
Commercial banks..............................................
17
Bank affiliates......................................................
Foreign banking agencies...................................
18
Savings and loan associations...........................
19
20
Other insurance companies................................
21
Finance companies.............................................
22
REIT’s .................................................................
23
Open end investment companies.......................

11.7
4.8
5.1
- .2
6.9
3.7

2.0
- .6
- .6
- .1
2.6
3.0

33.7
8.8
9.1
- .3
24.9
6.1

3 .2
.9
-.9

18.3
3.5
3.2
.2
14.9
6.4

- .4

8 .5

18.8

- 1 .0
3.3
.9

1.3
1.0
- 2 .0
1.9
- 2 .5

1.1
.4
2.5
3.6
.9

11.7
4.8
6.9
- .1

2.0
- .6
2.6
.1

18.3
3.5
14.9
1.2

.1
.1
.1
3.1

*
- 1 .7
.1
1.2

3.7

3.0

.1
1.1
.2
5.7
.7
5.8

12.6
8.2
8.2

16.5
3.8
3.8

4.3
4.6
—.3
3.1
.7
- .5
-5 .0
1.3

12.7
3.3
5.1
2.1
3.0
1.8
- 2 .7

33.7 12.6
8.2
8.8
4.3
24.9
1.4 -3 .1
4.2 - 1 .9
.2
.1
4.1
1.8
.5
.4
8.3
1.6
1.3
2.7
4.8
2.6

16.5
3.8
12.7
2.5
- .4
1.6
- .1
.6
4.2
3.0
1.1

1.5
.2
2.3
10.7
4.0

9 .3

12.1
11.0
10.2
.9
22.8 32.4
1.1
2.4
1.8
.8
20.3 31.6 14.2
- .7
7.0
2.3
1.4
3.1
1.7 - 1 .2 - 1 .3
2.3
6.8 13.5
7.5 - 5 .3
4.9
9.8
- .1
3.1
*
7.2
6.7 - 4 . 0

3.0
3.3
2.0
2.6
- 7 .9 - 2 . 7
4.6
1.5
- 8 .1
.2

28.9
6.2
22.8
4.0
.7
.8
2.0
.5
9.3
6.1
- .7

4.9 19.3 13
9.1
13.0 14
- 4 .2
6.3 15
4.6
2.1 16
.9
—.3 17
- .9
.2 18
-8 .0
3.8 19
.8
.7 20
- 2 .5
.8 21
—1 8 - 1 .4 22
2.7
.5 23

28.9
6.2
6.2

52.0
19.6
19.6

38.0
22.1
21.4
.7
15.9
1.7

52.0 38.0 12.1
19.6 22.1
11.0
32.4 15.9
1.1
4.5 - 1 .9
3.3
2.2
2.4
.3
5.1
2.9 - . 3
6.0
6.3 - 2 .1
.5
.4
.7
9.4
3.9 - . 9
6.3
1.0 —1.6
- 1 .6
1.0
1.6

4.9
9.1
8.0
1.1
- 4 .2
2.1
-6 .3

19.3
13.0
12.3
.6
6.3
1.5
4 .8

1
2
3
4
5
6
7
8
9
10
11
12

Total credit market funds raised, all sectors, by type
1
2
3
4
5
6
7
8
9
10
11
12

Investment company shares...................................
Other corporate equities........................................
Debt instruments .....................................................
U.S. Government securities...............................
State and local obligations.................................
Corporate and foreign bonds............................
Mortgages............................................................
Consumer credit..................................................
Bank loans n.e.c..................................................
Open market paper and RP’s ............................
Other loans..........................................................

79.6
3.7
1.1

84.4 114.3 125.5 110.8 163.9 198.3 239.4 218.1 216.6 191.6 241.5
3.0
5.8
4.8
2.6
- . 7 - 1 .6
1.0
1.1
1.6
2.7
.5
2.5
5.2
.6
7.7 13.6 13.6
9.6
4.6 10.1
9.8 10.4

8.8
5.6
11.8
21.3
6.4
9.7
4.4
6.9

12.5
7.8
17.2
23.0
4.5
7.5
4.0
2.5

74.9

79.0 107.9 115.5 100.4 149.1

N o t e . —Full statements for sectors and transaction types quarterly, and
annually for flows and for amounts outstanding, may be obtained from




16.7
9.5
15.0
27.4
10.0
15.7
5.2
8.3

5.5 21.1
9.9 11.2
14.5 23.8
27.8 26.4
10.4
6.0
17.6
5.8
14.1 - 1 .2
15.8
7.3

29.4
17.6
24.8
48.9
11.2
12.4
.9
4.0

185.4 231.3 212.5 204.9 179.0

23.6
14.4
20.2
68.8
19.2
28.5
3.3
7.4

29.4
13.7
12.5
71.9
22.9
52.1
11.6
17.2

33.5 95.4 92.0
17.4 15.4 17.1
23.3 36.7 44.2
54.5 57.3 51.4
9.6
5.3 - 1 .5
39.5 - 1 2 .6 -2 6 .7
13.6
.9
1.9
6.4
21.1
.6

1
2
3
230.6
4
98.9
5
13.8
6
29.1
7
63.2
8
12.0 9
1.3 10
* 11
12.2 12

Flow of Funds Section, Division of Research and Statistics, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.

JUNE 1976 □ FLOW OF FUNDS

A57

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions o f dollars)
1975 '
Transaction category, or sector

1966

1 Total funds advanced in credit markets to non­
financial sectors .................................................
By public agencies and foreign
2 Total net advances....................................................
3
U.S. Government securities.................................
4
Residential mortgages............... ...........................
5
FHLB advances to S&L’s ....................................
6
Other loans and securities...................................
By agency—
7
U.S. Government..................................................
8
Sponsored credit agencies....................................
9
Monetary authorities............................................
10
Foreign..................................................................
11 Agency borrowing not included in line 1...............

4.9
5.1
3.5
- 1 .6
4.8

Private domestic funds advanced
12 Total net advances....................................................
13
U.S. Government securities.................................
14
State and local obligations...................................
15
Corporate and foreign bonds...............................
16
Residential mortgages..........................................
17
Other mortgages and loans.................................
18
Less: FHLB advances..........................................

1967

1968

1969

1970

1971

1972

1973

1974

19751

HI

H2

80.0

95.9

88.0

92.5 135.9 158.9 180.1 176.2 194.6 176.2 212.8

11.9 11.3
6.8
3.4
2.
2.1
.9 - 2 .5
4.8
4.9

12.2
3.4
2.8
.9
5.1

15.7
.7
4.6
4.0
6.3

28.1 41.7
15.9 33.
5.7
5.7
1.3 - 2 .7
5.2
4.9

4.6
- .1
4.8
2.0
- .6

4.9
3.2
3.7
.3
3.5

2.9
8.9
4.2
- .3
8

2.8
10.0
5.0
10.3
8.2

59.8 68.1
5.4
5.7
5.6
7.
10.3 16.0
12.0 13.0
27.4 23.1
.9 - 2 .5

87.2
13.3
9.5
13.
15.5
35.9
.9

81.1
4.8
9.9
12.5
15.7
42.2
4.0

72.6 98.1 146.7 166.5 149.1 166.4 143.7 189.0
15.2 18.4 24.9 76.9 63.7 90.2
5.2 - 4 .4
11.2 17.6 14.4 13.7 17.4 15.4 17.1 13.8
20.0 19.5 13.2 10.1 20.6 33.1 41.1 25.1
12.
29.1 44.6 44.1 25.6 22.3 19.1 25.5
24.6 33.7 59.5 87.4 67.4 14.8 - 5 .3
34.7
7.2
1.3 - 2 .7
6.7 - 4 . 0 - 8 .1
.2

75.3

55.3

75.3

55.3

66.9

3.2
3.2
8.9
26.4
3.

18.3
8.4
5.2
*
4.6

33.2
11.0
7.6
7.2
7.5

49.2 39.2
8.6 18.5
13.8 16.1
6.7 - 4 . 0
8.5
20.1

2.6
7.0
.3
8.4
6.2

3.0
20.3
9.2
.7
19.6

7.4
24.1
6.2
11.6
22.1

13.3
12.6
8.5
4.7
11.0

41.6
28.3
15.1
- 8 .1
6.3

36.8
8.8
17.2
.2
10.7

2
3
4
5
6

12.7 13.9
11.1 14.1
7.0 10.1
10.8 - 1 .4
9.1
13.0

7
8
9
10
11

P riv a te fin a n c ia l in te r m e d ia tio n

19 Credit market funds advanced by private financial
institutions..........................................................
20
Commercial banks................................................
21
Savings institutions.............................................. .
22
Insurance and pension funds...............................
23
Other finance........................................................ .

45.4

6 3.5

24 Sources o f fu nds ........................................................
25
Private domestic deposits.....................................
26
Credit market borrowing......................................

45.4

63.5

27
28
29
30
31

19.8
3.7
- .5
13.6
3.0

17.5
7.
15.5
4.5

35.9
15.0
12.9
-.3

38.7
15.6
14.0
7.0

18.2
14.5
12.7
9.9

74.9 110.7 153.4 158.

35.1
16.9
17.3
5.7

50.6
41.4
13.3
5.3

70.5
49.3
17.7
15.8

86.6
35.1
22.1
15.0

131.5 123.0 115.0 130.8

64.6
26.9
34.3
5.7

27.3
56.0
40.1
- .4

16.3
58.8
40.0
- .2

74.9 110.7 153.4 158.8 131.5 123.0 115.0 130.8

88.5
4.8

24
25
26

35.5 42.4 40.
27.7 17.7 37.5
5.2
6.5 13.6 - . 4 - 6 .3
5.6
.7 - 1 .0 - 5 .1 - 1 . 7 - 2 .3 - 1 .1
13.1 16.7 27.9 27.4 27.6 27.2
4.4
2.4 - 1 .3
16.5 20.2
5.8

27
28
29
30
31

45.9
8.5

13.9
2.3
.2
12.0
- .6

21.0
2.6
- .2
11.4
7.2

34.0 12.0 11.0
9.3 - 8 .5 - 3 .2
2.9
2.2
9.1
10.J 13.1
13 J
4.4
2.9

32 Direct lending in credit markets...............................
33
U.S. Government securities..................................
34
State and local obligations....................................
35
Corporate and foreign bonds................................
36
Commercial paper..................................................
37
O ther.......................................................................

4.2
17.6
8.4 - 1 .4
2.6 - 2 .5
2.0
4.6
2.3
1.9
2.3
1.7

20.4
8.1
- .2
4.7
5.8
2.1

44.5
17.0
8.7
6.6
10.2
2.0

38 Deposits and currency...............................................
39
Time and saving accounts.....................................
40
Large negotiable CD’s .......................................
41
Other at commercial banks...............................
42
At savings institutions........................................

24.4
20.3
- .2
13.3
7.3

52.1
39.3
4.3
18.3
16.7

5.4
48.3
33.9 - 2 .3
3.5 -13.7
3.4
17.5
8.0
12.9

66.6
56.1
15.0
24.2
16.9

93.7 101.9
81.0 85.2
8.7
7.7
32.9 30.6
40.4 45.9

88.8
76.3
18.5
29.5
28.2

82.8 102.2 110.9
71.9 88.7 91.1
23.6 - 9 . 7 -22.3
26.6 39.0 44.5
21.8 59.4 68.9

Money.....................................................................
Demand deposits................................................
Currency..............................................................

4.1
2.1
2.0

12.8
10.6
2.1

14.5
12.1
2.4

7.7
4.8
2.8

10.5
7.1
3.5

12.7
9.3
3.4

16.7
12.3
4.4

12.6
8.6
3.9

10.8
4.5
6.3

46 Total of credit market instr., deposits, and currency.

42.0

56.3

68.7

49.9

64.1

47
48
49

17.9
75.9
2.1

14.1
93.2
4.3

12.7
86.4
2.

17.8 30.4 30.7 11.5
68.3 103.1 112.8 104.5
9.1
1.8 23.2 13.6

Other sources..........................................................
Foreign funds......................................................
Treasury balances...............................................
Insurance and pension reserves....................... .
Other, n et............................................................
P r iv a te d o m e s tic n o n fin a n c ia l in v e sto rs

43
44
45

Private support rate (in per cent)..........................
Private financial intermediation (in per cent)
Total foreign funds................................................

2.6
18.8

63.2
- .3

76.5
14.2

50.0
- .4

22.5
3.2

19
38.2 20
53.2 21
40.2 22
- . 8 23

90.3
9.3

- 2 .6 - 3 .2
- 9 .0 - 1 4 .0
.6
- 1 .2
9.3
10.7
- .6
- 4 .4
1.4
1.5

97.5
20.3

13.7
1.6
2.1
5.2
4.0

84.9
31.6

39.3 31.8
18.8 18.1
4.4 10.8
1.1 - 1 .7
1.6
11.3
2.9
3.8

96.0 103.6
- . 7 - 6 .3

42.7 22.5 63.0
21.2 - 4 .8 47.1
8.3 10.6
5.9
9.0 11.5
6.5
2.1 - 1 . 4
.4
2.9
3.8
4.8

32
33
34
35
36
37

93.5
86.2
2.9
33.4
49.9

38
39
40
41
42

7.3
2.3
5.1

43
44
45

90.5 115.7 128.1 114.5 144.9 133.3 156.5

46

18.4
95.4
7.2

27.9
88.2
25.1

13.6
7.4
6.2

19.8
12.4
7.3

20.1
73.9
4.4

23.6
80.0
4.5

17.3 47
69.2 48
4.2 49

11.7
1.6
10.1
8.4
3.3

12.5
2.7
9.8
10.4
2.2

10.9
.5
10.4
6.5
4.4

Corporate equities not included above
1 Total net issues...................................... ....................
2
Mutual fund shares................................................
3
Other equities........................... .. .....................
4 Acquisitions by financial institutions..................
5 Other net purchases

4.8
5.5
3.7
3.0
1.1
2.5
6.0
9.1
- 1 .2 - 3 .6

Notes
Line
1. Line 2 of p. A-56.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by Federally sponsored credit agencies.
Included below in lines 13 and 33. Includes all GNMA-guaranteed
security issues backed by mortgage pools.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Lines 39 plus 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 of foreign banking agencies to foreign af­
filiates.




6.4 10.0 10.4 14.8 12.9
8.0
5.8
4.8
2.6
1.1 —.7 - 1 .6
5.2
.6
7.7 13.6 13.6
9.6
10.8 12.2 11.4 19.3 16.0 13.4
- 4 .4 - 2 .2 - 1 .0 - 4 .5 - 3 .1 - 5 .4

5.6
1.0
4.6
6.1
- .5

1
2
3
4
5

29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
39+44. See line 25.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Lines 1 and 3. Includes issues by financial institutions.

A58

U.S. BALANCE OF PAYMENTS □ JUNE 1976
1.

U.S. BALANCE OF PAYMENTS SUMMARY

(In millions o f dollars. Quarterly figures are seasonally adjusted unless shown in italics.)

Line

Credits (+ ) , debits ( —)

1973

1974
197 4

1975

1975
IV

IVp

III

3

Merchandise trade balance 1.
Exports...........................
Imports...........................

955 -5 ,2 7 7
9,045 -1 ,3 8 0
1,495
3,274
2,111
2,165
71,379 98,309 107,184 26,593 27,056 25,843 26,596 27,689
-70,424 -103,568 -98,139 -27,973 -25,561 -22,569 -24,485 -25,524

4
5

Military transactions, net..........
Travel and transportation, n et.

-2 ,3 1 7
-2 ,8 6 2

-819
-1 ,9 6 8

-498
-741

-3 5 4
-545

-409
-370

-5 0
-481

-5
-573

6

Investment income, net 2.................................... .
U.S. direct investments abroad 2 .................
Other U.S. investments abroad.....................
Foreign investments in the United States 2 .

5,179 10,121
6,030
8,841 17,679
9,140
5,157
8,389
8,735
-8 ,8 1 9 -15,946 -11,845

2,559
4,080
2,358
-3 ,8 7 9

1,185
2,158
2,148
3,121

2,172
2,075
-2 ,8 4 7

1,400

1,773
2,428
2,248
-2 ,9 0 3

1,672
2,382
2,264
-2 ,9 7 4

1
2

7

8
9

10
11
12
13
14
15
16
17
18
19

20
21
22
23
24
25
26
27
28
29
30
31
32

Other services, net 2 ..............................................
Balance on goods and services Not seasonally adjusted . ..
Remittances, pensions, and other transfers.
Balance on goods, services, and remittances.
Not seasonally adjusted ...........................
U.S. Government grants (excluding military).
Balance on current account...
Not seasonally adjusted..

U.S. Government capital flows excluding nonscheduled
repayments, net 5....................................................................
Nonscheduled repayments of U.S. Government assets...........
U.S. Government nonliquid liabilities to other than foreign
official reserve agencies...........................................................
Long-term private capital flows, net.........................................
U.S. direct investments abroad..........................................
Foreign direct investments in the United States 6...........
Foreign securities................................................................
U.S. securities other than Treasury issues 6.....................
Other, reported by U.S. banks..........................................
Other, reported by U.S. nonbanking concerns.................
Balance on current account and long-term capital 5.
Not seasonally adjusted ......................................
Nonliquid short-term private capital flows, net.............
Claims reported by U.S. banks................................
Claims reported by U.S. nonbanking concerns
Liabilities reported by U.S. nonbanking concerns.
Allocations of Special Drawing Rights (SDR’s)............
Errors and omissions, net................................................
Net liquidity balance...............
Not seasonally adjusted..

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53

Liquid private capital flows, net..............................
Liquid claims....................................................
Reported by U.S. banks.......................... .
Reported by U.S. nonbanking concerns.,
Liquid liabilities—.............................................
Foreign commercial banks.......................
International and regional organizations.
Other foreigners........................................
Official reserve transactions balance, financed by changes in—.
Not seasonally adjusted .......................................................
Liquid liabilities to foreign official agencies.............................
Other readily marketable liabilities to foreign official agen­
cies 7........................................................................................
Nonliquid liabilities to foreign official reserve agencies re­
ported by U.S. Govt...............................................................
U.S. official reserve assets, n et..................................................
G old.....................................................................................
SDR’s .................................................................................
Convertible currencies........................................................
Gold tranche position in IM F ...........................................
Memoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14).................................................... . .............
Reinvested earnings of foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20).. ..................
Reinvested earnings of U.S. incorporated affiliates of foreign
firms (excluded from lines 9 and 21)....................................

-2 ,1 5 8
-2 ,6 9 2

3,222

3,830

4,211

1,049

1,092

1,041

1,120

959

4,177

3,825

16,500

989

2,873

2,348

4,936

4,243

5,214

4,473

4,218

-1,903

-1,721

-1 ,7 6 3

-439

-448

-462

-423

-432

2,274

2,104

14,736

550

2,425

4,474

4,050

3,825

4,742

1,302

3,786

-1,938 4-5,461

-2 ,8 2 0

-649

-727

-721

-6 0 4

-769

335 4 -3 ,3 5 7

11,916

-9 9

1,698

3,753

1,289

3,(

3,953

3,446

3,017

744

4,131

1,904

1,739

5,304

4,867

-2,933
289

4408
1

-3,500

-985

—1,015

-821

-717

-946

1,154
177
-4,968
2,656
-759
4,055
-7 0 6
-101

710
-8,4 6 3
2,224
-1 ,9 9 0
672
-1 ,1 6 6
-748

1,774
-8,789
-5,760
1,934
-6,328
3,899
-2,608
74

125
-5,570
-3,310
-653
-726
-663
-285
67

546
-2,206
-1,041
340
-2,021
653
-451
314

471
-2,421
-2,304
679
-1,001
678
-649
176

240
-1,573
-6 5 0
-9 4
-946
1,033
-702
-2 1 4

516
-2,591
-1,765
1,008
-2,361
1,535
-8 0 6
-2 0 2

-9 7 7 -10,7 02

1,401

-6 ,5 2 9

-9 7 7

982

-128

1,106

-1 ,2 0 5

1,628

-2,305
-2,406
-137
238

1,949
1,724
279
-54

-966
-1,004
-167
205

-1,893
-1,126
-709
-5 8

-1,909
-1,507
-3 1 4
-8 8

-7 ,4 5 5

-4 ,6 1 6

-4,238 -12,936
-3,886 -12,173
-1,183 -2,6 0 3
1,840
831

-2,819
-1,913
-911
5

1,396

-4

4,698

4,556

1,236

2,485

446

936

690

-7,651 -18,940

3,138

-7,598

3,457

4,527

462

247

439

-1 ,3 4 5

-1 ,2 2 3

2,343 10,543
-1,951 -6 ,2 6 7
-1,161 -6 ,1 3 4
-133
-7 9 0
4,294 16,810
3,028 12,621
1,319
377
2,870
889

-5,601
-9,200
-8,933
-267
3,599
-501
2,277
1,823

2.730
-2,101
-1,732
-369
4,831
2.730
1,308
793

-6,623
-4,796
-5,062
266
-1,827
-2,808
877
104

-2,232
-2,331
-2,413
82
99
1
-182
263

4,569
435
937
-5 0 2
4,134
2,572
971
-591

-1,315
-2,508
-2,395
-113
1,193
-283
611
-865

-8 ,3 9 7

-2 ,4 6 3

-4 ,8 6 8

-3 ,1 6 6

-1 ,7 7 0

5,008

-1,415

-3 ,0 6 4

-2 ,5 3 8

-2,436

-5 ,3 0 8

-6 ,4 7 5

-4 ,0 7 0

-2 ,1 9 4

-2 9 1

-1 ,9 1 8

4,456

8,503

1,007

3,886

2,686

1,394

-4,962

1,892

1,118

673

2,072

630

811

406

297

558

-4 7 5
209

655
-1,434

-9
-607

215
137

-6
-325

-1
-2 9

-1
-342

-1
89

9
233
-3 3

-172
3
-1,265

-6 6
-7 5
-466

-2 0
241
-8 4

-4
-1 4
-307

-1 6
-6
-7

-2 5
-2 2 2
-9 5

-21
167
-5 7

2,809

1,811

2,287

490

787

1,244

66

190

8,124

7,508

945

1,554

54

Balances excluding allocations of SDR’s:
Net liquidity, not seasonally adjusted .................................

-7,6 5 1

-18,940

3,138

-6,475

4,527

247

-1 ,3 4 5

-2 9 1

55

Official reserve transactions, N .S.A ....................................

-5 ,3 0 8

- 8 ,3 9 7

-2 ,4 6 3

-4 ,0 7 0

- 2 ,1 9 4

-1,415

3,064

-1 ,9 1 8

For notes see opposite page.




JUNE 1976 □ FOREIGN TRADE; U.S. RESERVE ASSETS

A59

2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions o f dollars)

Imports 2

Exports 1

19743

1973

1974

1975 r

1976

1973

Month:
Jan__
F eb...
M ar...
A pr...
M a y ..
June..
July...
Aug...
Sept...
O ct.. .
N ov...
D ec...

4,955
5,070
5,311
5,494
5,561
5,728
5,865
6,042
6,420
6,585
6,879
6,949

7,150
7,549
7,625
8,108
7,652
8,317
8,307
8,379
8,399
8,673
8,973
8,862

9,373
8,755
8,685
8,648
8,222
8,716
8,894
8,979
9,146
9,225
9,409
9,250

9,103
8,800
8,956
9,394

5,244
5,483
5,414
5,360
5,703
5,775
5,829
6,011
5,644
5,996
6,684
6,291

6,498
7,318
7,742
8,025
8,265
8,577
8,922
9,267
8,696
8,773
8,973
9,257

Quarter:
I
I I
I I I .. . .
IV .. . .

15,336
16,783
18,327
20,413

22,325
24,077
25,085
26,508

26,813
25,585
27,019
27,884

26,859

16,140
16,839
17,483
18,972

Year4. .,

70,823

97,908

107,191

69,476

1 Exports of domestic and foreign merchandise (f.a.s. value basis);
excludes Department of Defense shipments under military grant-aid
programs.
2 General imports, which includes imports for immediate consumption
plus entries into bonded warehouses. See also note 3.
3 Beginning with 1974 data, imports are reported on an f.a.s. trans­
actions value basis; prior data are reported on a Customs import value

1975

Trade balance
19743

1975

1976

1973

9,635
7,928
7,466
7,959
7,266
7,104
7,832
7,877
8,205
8,170
8,204
8,526

9,176
8,941
9,607
9,596

-289
-413
-103
+ 133
-1 4 2
-4 7
+37
+32
+776
+589
+ 195
+658

+652
+231
-1 1 7
+83
-612
-2 6 0
-6 1 5
-888
-2 9 7
-1 0 0
-395

-2 6 2
+827
+ 1,219
+689
+955
+ 1,613
+ 1,062
+ 1,102
+941
+ 1,054
+ 1,206
+724

21,558
24,867
26,885
27,003

25,030
22,328
23,915
24,900

27,723

-8 0 4
-5 6
+844
+ 1,441

+767
-7 9 0
-1,800
-4 9 5

+ 1,784
+3,257
+3,104
+2,984

100,251

96,140

+ 1,347

-2,343 + 11,050

1976

-7 3
-141
-651
-2 0 2

-864

basis. For calendar year 1974, the f.a.s. import transactions value was
$100.3 billion, about 0.7 per cent less than the corresponding Customs
import value of $101.0 billion.
4 Sum of unadjusted figures.
N o t e . —Bureau of the Census data. Details may not add to totals be­
cause of rounding.

3. U.S. RESERVE ASSETS
(In millions of dollars)

Total 2

Treasury

Con­
vertible
foreign
curren­
cies

18,753
17,220
16,843
16,672

16,947
16,057
15,596
15,471

16,889
15,978
15,513
15,388

116
99
212
432

1,690
1,064
1,035
769

1965..
1966..
1967..
1968..
1969..

15,450
14.882
14,830
15,710
4 16,964

13,806
13,235
12,065
10,892
11,859

13,733
13,159
11,982
10.367
10.367

781
1,321
2,345
3,528
42,781

863
326
420
1,290
2,324

1970..
1971..
19726.
19737.
1974..

14,487
512,167
13,151
14,378
15.883

11,072
10,206
10,487
11.652
11.652

10,732
10,132
10,410
11,567
11,652

629
5 276
241

1,935
585
465
552
1,852

Gold stock1
End of
year

Total

1961..
1962..
1963..
1964..

Reserve
position
in
IMF

Gold stock
SDR’s 3

Total 2

Treasury

Con­
vertible
foreign
curren­
cies

16,280
16,242
16,084
16,117
16,291
16,569
16,592
16,226

11,620
11,620
11,618
11,599
11,599
11,599
11,599
11,599

11,620
11,620
11,618
11,599
11,599
11,599
11,599
11,599

4
25
2
28
247
413
423
80

2,218
2,179
2,135
2,169
2,144
2,192
2,234
2,212

2,438
2,418
2,329
2,321
2,301
2,365
2,336
2,335

16,622
16,661
16,941
17,438
May. . . . 817,958

11,599
11,599
11,599
11,599
11,598

11,599
11,599
11,559
11,599
11,598

333
296
571
936
938

2,314
2,390
2,420
2,578
83,113

2,376
2,376
2,351
2,325
82,309

End of
month

1 975May . . . .
Ju n e .. . .
July___

851
1,100
1,958
2,166
2,374

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 IMF to mitigate the impact
on the U.S. gold stock of foreign purchases for the purpose of making
gold subscriptions to the IM F under quota increases. For corresponding
liabilities, see Table 5.
2 Includes gold in Exchange Stabilization Fund.
3 Includes allocations by the IM F of Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SDR’s.
4 Includes gain of $67 million resulting from revaluation of the German
mark in Oct. 1969, of which $13 million represents gain on mark holdings
at time of revaluation.
5 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect market exchange rates as of Dec. 31, 1971.
6 Total reserve assets include an increase of $1,016 million resulting
from change in par value of the U.S. dollar on May 8, 1972; of which,

1976—

Feb

Total

Reserve
position
in
IM F

SD R’s 3

total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IMF $33 million, and SDR’s $155 million.
7 Total reserve assets include an increase of $1,436 million resulting
from change in par value of the U.S. dollar on Oct. 18, 1973; of which,
total gold stock is $1,165 million (Treas. gold stock $1,157 million)
reserve position in IMF $54 million, and SDR’s $217 million.
8 Beginning July 1974, the IM F adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position
in the IMF are also valued on this basis beginning July 1974. At valua­
tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end
of May amounted to $2,435 million, reserve position in IMF, $3,246
million, and total U.S. reserves assets, $18,217.
N o t e . —See Table 20 for gold held under earmark at F.R. Banks for
foreign and international accounts. Gold under earmark is not included
in the gold stock of the United States.

NOTES TO TABLE 1 ON OPPOSITE PAGE:
1 Adjusted to balance of payments basis; among other adjustments,
excludes military transactions and includes imports into the U.S. Virgin
Islands.
2 Fees and royalities from U.S. direct investments abroad or from
foreign direct investments in the United States are excluded from invest­
ment income and included in “Other services.”
3 Differs from the definition of “net exports of goods and services” in
the national income and product (GNP) account. The GNP definition
excludes special military sales to Israel from exports and excludes U.S.
Govt, interest payments from imports.




4 Includes under U.S. Government grants $2 billion equivalent, rep­
resenting the refinancing of economic assistance loans to India; a cor­
responding reduction of credits is shown in line 16.
5 Includes some short-term U.S. Govt, assets.
6 Includes some transactions of foreign official agencies.
7 Includes changes in long-term liabilities reported by banks in the
United States and in investments by foreign official agencies in debt
securities of U.S. Federally sponsored agencies and U.S. corporations.
N o t e . —Data are from U.S. Department of Commerce, Bureau of Eco­
nomic Analysis. Details may not add to totals because of rounding.

A60

GOLD RESERVES □ JUNE 1976
4. GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
Esti­
mated
total
world1

Intl.
Mone­
tary
Fund

United
States

Esti­
mated
rest of
world

Algeria

Argen­
tina

1970..........................
1971..........................
1972..........................
1973..........................
1974..........................

41,275
41,160
44,890
49,850
49,800

4,339
4,732
5,830
6,478
6,478

11,072
10,206
10,487
11,652
11,652

25,865
26,220
28,575
31,720
31,670

191
192
208
231
231

140
90
152
169
169

239
259
281
312
312

707
729
791
881
882

1,470
1,544
1,638
1,781
1,781

791
792
834
927
927

82
80
87
97
97

65
64
69
77
76

85
85
92
103
103

1975—May..............
June..............

49,760

Sept...............
Oct.................

49,750

Dec................

49,740

6,478
6,478
6,478
6,478
6,478
6,478
6,478
6,478

11,620
11,620
11,618
11,599
11,599
11,599
11,599
11,599

231
231
231
231
231
231
231
231

169
169
169
169
169
169
169
169

312
312
312
312
312
312
312
312

882
882
882
882
882
882
882
882

1,781
1,781
1,781
1,781
1,781
1,781
1,781
1,781

927
927
927
927
927
927
927
927

97
97
97
97
97
97
97
97

76
76
76
76
76
76
76
76

103
103
103
103
103
103
103
103

6,478
6,478
6,478
6,478

11,599
11,599
11,599
11,599

231
231
231
231

169
169

31,395

312
312
312
312

882
882
882
882

1,781
1,781
1,781
1,781

927
927
916
916

97
97
94
94

76
76
76
76

Ger­
many

Greece

India

Japan

Kuwait

End of
period

1976—j an................
Feb................

End of
period

49,470

France

31,660
31,675
31,665

Iran

Iraq

Aus­
tralia

Italy

Aus­
tria

Bel­
gium

Canada

Leb­
anon

China,
Rep. of
(Taiwan)

Den­
mark

Egypt

Libya

Mexi­
co

Nether­
lands

1970..........................
1971..........................
1972..........................
1973..........................
1974..........................

3,532
3,523
3,826
4,261
4,262

3,980
4,077
4,459
4,966
4,966

117
98
133
148
152

243
243
264
293
293

131
131
142
159
158

144
144
156
173
173

2,887
2,884
3,130
3,483
3,483

532
679
801
891
891

86
87
94
120
148

288
322
350
388
389

85
85
93
103
103

176
184
188
196
154

1,787
1,909
2,059
2,294
2,294

1975—May..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec................

4,262
4,262
4,262
4,262
4,262
4,262
4,262
4,262

4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966

153
153
153
153
153
153
153
153

293
293
293
293
293
293
293
293

158
158
158
158
158
158
158
158

173
173
173
173
173
173
173
173

3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483

891
891
891
891
891
891
891
891

175
154
154
154
160
160
160
169

389
389
389
389
389
389
389
389

103
103
103
103
103
103
103
103

154
154
154
154
154
154
154
154

2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294

1976—Jan.................
Feb................
Mar...............
Apr.2*............

4,262
4,262
4,262
4,262

4,966
4,966
4,966
4,966

153
153
153

293
293
293

158
158
158

173
173
173

3,483
3,483
3,483
3,483

891
891
891
891

169
176
176
183

389

103
103
103
103

152

2,294
2,294
2,294
2,294

Portu­
gal

Saudi
Arabia

South
Africa

Thai­
land

Turkey

United
King­
dom

End of
period

Paki­
stan

Spain

Sweden Switzer­
land

Uru­
guay

Vene­
zuela

Bank
for Intl.
Settle­
ments 2

1970..........................
1971..........................
1972..........................
1973..........................
1974..........................

54
55
60
67
67

902
921
1,021
1,163
1,175

119
108
117
129
129

666
410
681
802
771

498
498
541
602
602

200
200
217
244
244

2,732
2,909
3,158
3,513
3,513

82
82
89
99
99

126
130
136
151
151

1,348
777
801
887
888

162
148
133
148
148

384
391
425
472
472

-282
310
218
235
250

June..............
July...............
Aug................
Sept...............
Oct.................
Nov...............
Dec................

67
67
67
67
67
67
67
67

1,175
1,175
1,175
1,175
1,175
1,175
1,175
1,170

129
129
129
129
129
129
129
129

742
744
742
744
762
754
752
749

602
602
602
602
602
602
602
602

244
244
244
244
244
244
244
244

3,513
3,513
3,513
3,513
3,513
3,513
3,513
3,513

99
99
99
99
99
99
99
99

151
151
151
151
151
151
151
151

888
888
888
888
888
888
888
888

148
148
135
135
135
135
135
135

472
472
472
472
472
472
472
472

239
262
264
264
254
256
259
246

1976—Jan.................
Feb................
M a r ..............
Apr.p. . . . . . .

67
67
67

1,170
1,170

129
129
129
129

753
749
3 543
539

602
602
602

244
244
244
244

3,513
3,513
3,513
3,513

99
99
99
99

151
151
151
151

135
135

472
472
472
472

213
205
206

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
G old; excludes holdings of the U.S.S.R., other Eastern European coun­
tries, and People’s Republic of China.
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 assets minus gold deposit liabilities.
3 Reflects South African Reserve Bank sale of gold spot and repurchase
forward.

JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A61

5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
Official institutions2

Liquid
liabiliEnd
of
period

Total

IMF
arising
from
gold
trans­
actions i

Total

Short­
term
liabili­
ties re­
ported
by
banks
in
U.S.

Liquid liabilities to other
foreigners

Non­
Market­
able
market­
able U.S.
U.S.
Treas.
Treas.
bonds
bonds
and
and
notes3
notes4

Other
readily
market­
able
liabili­
ties5

Liquid
liabili­
ties
to com­
mercial
banks
abroad6

Total

Short­
term
liabili­
ties re­
ported
by
banks
in
U.S.

Market­
able
U.S.
Treas.
bonds
and
notes3,7

Liquid
liabili­
ties to
mone­
tary
inti,
and re­
gional
organi­
zations 8

196 4

29,364

800

15,786

13,220

1,125

1,283

158

7,303

3,753

3,377

376

1,722

196 5

29,568

834

15,825

13,066

1,105

1,534

120

7,419

4,059

3,587

472

1,431

19669............

/31,144
\31,019

1,011
1,011

14,840
14,895

12,484
12,539

860
860

583
583

913
913

10,116
9,936

4,271
4,272

3,743
3,744

528
528

906
905

19679............

/35,819
\35,667

1,033
1,033

18,201
18,194

14,034
14,027

908
908

1,452
1,452

1,807
1,807

11,209
11,085

4,685
4,678

4,127
4,120

558
558

691
677

19689............

/38,687
138,473

1,030
1,030

17,407
17,340

11,318
11,318

529
462

3,219
3,219

2,341
2,341

14,472
14,472

5,053
4,909

4,444
4,444

609
465

725
722

19699............

‘0/45,755
145,914

1,109
1,019

1015,975
15,998

11,054
11,077

346
346

10 3,070
3,070

1,505
1,505

23,638
23,645

4,464
4,589

3,939
4,064

525
525

659
663

1970—Dec. .

J47,009
146,960

566
566

23,786
23,775

19,333
19,333

306
295

3,452
3,452

695
695

17,137
17,169

4,676
4,604

4,029
4,039

647
565

844
846

1971—Dec. ii

/67,681
167,808

544
544

51,209
50,651

39,679
39,018

1,955
1,955

9,431
9,534

144
144

10,262
10,949

4,138
4,141

3,691
3,694

447
447

1,528
1,523

1972—D ec...

82,862

61,526

40,000

5,236

15,747

543

14,666

5,043

4,618

425

1,627

1973—D ec.'.

92,490

66,861

1243,923

5,701

1215,564

1,673

17,694

5,932

5,502

430

2,003

1974—Dec. 9.

J119,240
\119,152

76,801
76,808

53,057
53,064

5,059
5,059

16,339
16,339

2,346
2,346

30,314
30,079

8,803
8,943

8,305
8,445

498
498

3,322
3,322

1975—A pr...
M a y ..
June..
Ju ly ..
Aug...
Sept...
O ct.. .
Nov...
D ec.. .

121.096
122,357
122.097
123,008
124,411
123,265
123,370
126,393
126,137

79,292
80,007
80,780
80,022
79,499
78,058
79,940
79,409
80,150

53,531
52,408
51,929
50,393
49,915
48,080
49,602
49,124
49,170

5,941
6,064
6,119
6,160
6,276
6,452
6,624
6,454
6,575

16,507
18,067
19,169
19,616
19,466
19,666
19,666
19,726
19,976

3,313
3,468
3,563
3,853
3,842
3,860
4,048
4,105
4,429

28,799
28,913
27,990
29,035
30,340
30,318
28,467
32,191
29,579

8,843
9,123
9,310
9,337
9,668
9,901
10,021
10,234
10,765

8,188
8,500
8,656
8,627
8,997
9,200
9,283
9,527
10,036

655
623
654
710
671
701
738
707
729

4,162
4,314
4,017
4,614
4,904
4,988
4,942
4,560
5,643

1976—Jan.. .
Feb.. .
Mar.p
Apr.P.

127,770
130,938
127,440
134,654

80,723
81,346
80,360
82,055

49,147
49,659
48,238
49,369

6,816
6,917
7,315
7,609

20,051
20,051
20,051
20,151

4,709
4,719
4,756
4,926

30,993
33,197
30,286
35,241

10,510
10,822
11,056
11,669

9,775
10,077
10,255
10,782

735
745
801
887

5,544
5,573
5,738
5,689

1 Includes (a) liability on gold deposited by the IM F to mitigate the
impact on the U.S. gold stock of foreign purchases for gold subscriptions
to the IMF under quota increases, and (b) U.S. Treasury obligations at
cost value and funds awaiting investment obtained from proceeds of sales
of gold by the IMF to the United States to acquire income-earning assets.
2 Includes Bank for International Settlements; also includes European
Fund through Dec. 1972.
3 Derived by applying reported transactions to benchmark data.
4 Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally sponsored agencies and U.S. cor­
porations.
6 Includes short-term liabilities payable in dollars to commercial banks
abroad and short-term liabilities payable in foreign currencies to commer­
cial banks abroad and to other foreigners.
7 Includes marketable U.S. Treasury bonds and notes held by commer­
cial banks abroad.
8 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American and Asian Development Banks.
9 Data on the 2 lines shown for this date differ because of changes
in reporting coverage. Figures on first line are comparable with those




shown for the preceding date; figures on second line are comparable with
those shown for the following date.
i° Includes $101 million increase in dollar value of foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969.
11 Data on the second line differ from those on first line because cer­
tain accounts previously classified as official institutions are included
with banks; a number of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions of foreign countries have been increased in
value to reflect market exchange rates as of Dec. 31, 1971.
12 Includes $ 162 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates, as follows: short­
term" liabilities, $15 million; and nonmarketable U.S. Treasury notes,
$147 million.
N o t e . —Based on Treasury Dept, data and on data reported to the
Treasury Dept, by banks and brokers in the United States. Table excludes
IM F holdings of dollars, and U.S. Treasury letters of credit and non­
negotiable, non-interest-bearing special U.S. notes held by other inter­
national and regional organizations.

A62

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976
6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions of dollars)
Latin
American
republics

Total
foreign
countries

Western
Europe1

61,526
66,861

34,197
45,764

4,279
3,853

1,733
2,544

17,577
10,887

777
788

2,963
3,025

1974—Dec.3.

J76,801
\76,808

44.328
44.328

3.662
3.662

4.419
4.419

18,604
18,611

3.161
3.161

2.627
2.627

1975—A pr...
M a y ..
Ju n e ..
Ju ly ..
Aug...
Sept...
O ct...
Nov..,
Dec...

79,292
80,007
80,780
80,022
79,499
78,058
79,940
79,409
80,150

45,205
45,485
45,483
44,458
44,210
43,481
45,010
44,744
45,312

3,251
3,101
3,008
2,966
2,929
3,011
3,049
3,218
3,132

4,506
4,600
4,723
4,763
4,937
4,840
4,254
4,056
4,447

20,126
20,456
20,497
21,384
21,057
20,819
22,008
21,826
22,381

3,493
3,448
3,800
3,319
3,392
3,145
3,018
2,951
2,983

2,711
2,917
3,269
3,132
2,974
2,762
2,601
2,614
1,894

1976—J a n ...
F eb...
Mar.p
Apr.2’.

80,723
81,346
80,360
82,055

45,406
44,761
43,117
43,254

3,420
3,654
3,673
3,600

3,552
3,377
3,783
3,849

23,635
24,082
25,098
26,771

2,724
2,731
2,718
2,805

1,986
2,021
1,911
1,776

End of period
197 2
197 3

1 Includes Bank for International Settlements; also includes European
Fund through 1972.
2 Includes countries in Oceania and Eastern Europe, and Western Euro­
pean dependencies in Latin America.
3 See note 9 to Table 5.
N o t e . — Data

represent short- and long-term liabilities to the official

Canada

Other
countries2
Asia

Africa

institutions of foreign countries, as reported by banks in the United States;
foreign official holdings of marketable and nonmarketable U.S. Treasury
securities with an original maturity of more than 1 year, except for non­
marketable notes issued to foreign official nonreserve agencies; and in­
vestments by foreign official reserve agencies in debt securities of U.S.
Federally sponsored agencies and U.S. corporations.

7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonmonetary international
and regional organizations 5

To all foreigners
Payable in dollars
End of period

Total i

U.S.
Treasury
bills and
Time2 certifi­
cates 3

Deposits
Total

Demand

Other
short­
term
liab.4

Payable
in
foreign
cur­
rencies

IMF
gold
invest­
ment

Deposits

Total

U.S.
Treasury
bills and
certifi­
Demand Time2
cates

Other
short­
term
liab. 6

60,696
69,074

60,200
68,477

8,290
11,310

5,603
6,882

31,850
31,886

14,457
18,399

496
597

1,412
1,955

86
101

202
83

326
296

799
1,474

1974—Dec.7.

J94,847
\94,760

94,081
93,994

14,068
14,064

10,106
10,010

35,662
35,662

34,246
34,258

766
766

3,171
3,171

139
139

111
111

497
497

2,424
2,424

1975—Apr.. .
May. .
June. .
Ju ly ..
Aug..
Sept..
Oct...
Nov..
D ec..

94,192
93,735
92,517
92,500
94,055
92,499
91,935
95,313
94,077

93,450
93,070
91,933
91,939
93,493
91,945
91,300
94,673
93,478

11,696
11,929
12,596
12,218
12,218
13,422
12,159
12,813
13,579

10,390
10,374
10,662
10,385
10,703
10,400
10,584
10,293
10,664

40,424
40,628
38,265
38,564
38,529
36,653
37,749
37,297
37,414

30,941
30,139
30,535
30,772
32,043
31,470
30,808
34,270
31,821

742
665
584
560
562
554
635
637
599

3,674
3,914
3,943
4,444
4,804
4,901
4,583
4,471
5,293

99
115
106
146
110
107
132
145
139

126
133
183
134
148
127
150
156
186

781
1,994
996
2,518
3,156
3,008
2,397
1,605
2,554

2,668
1,672
2,708
1,646
1,389
1,659
1,903
2,562
2,412

1976—Ja n ...
Feb...
Mar.35
Apr.

94,848 94,239
97,454 96,800
93,542 92,982
100,911 100,144

12,295
13,349
13,126
14,243

10,732
10,272
10,661
10,340

38,789
39,657
37,572
38,929

32,424
33,522
31,623
36,631

600
654
555
763

4,925
4,520
4,763
5,519

114
118
130
140

217
162
179
193

2,498
2,435
2,495
2,739

2,096
1,805
1,959
2,447

197 2
197 3

For notes see opposite page.




JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A63

SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE-Continued
(Amounts outstanding; in millions of dollars)
Total to official, banks and other foreigners
Payable in dollars
End of period

Total

Deposits
Demand

Time2

U.S.
Treasury
bills and
certifi­
cates 3

Other
short­
term
liab. 4

To official institutions 8
Payable
in
foreign
cur­
rencies

Payable in dollars
Total

Deposits
Demand

Time2

U.S.
Treasury
bills and
certifi­
cates 3

Payable
Other
in
short­ foreign
term currencies
liab . 6

1973............

67,119

11,209

6,799

31,590

16,925

597

43,923

2,125

3,911

31,511

6,248

127

1974—Dec. 7

/91,676
\91,589

13,928
13,925

9,995
9,899

35.165
35.165

31,822
31,834

766
766

53,057
53,064

2,951
2,951

4,257
4,167

34,656
34,656

11,066
11,163

127
127

1975—Apr..
May.
June.
July. .
Aug..
Sept..
O ct...
Nov..
D ec..

90,518
89,821
88,659
88,590
89,249
87,598
87,352
90,842
88,785

11,597
11,814
12,494
12,086
12,121
13,315
12,027
12,668
13,440

10,264
10,241
10,654
10,288
10,251
10,273
10,434
10,137
10,478

39,643
38,634
37,269
36,079
35,406
33,645
35,359
35,692
34,860

28,273
28,468
27,658
29,577
30,909
29,811
28,897
31,708
29,416

742
665
584
560
562
554
635
637
591

53,531
52,408
52,039
50,643
49,932
48,080
49,602
49,124
49,170

2,147
2,175
2,564
2,492
2,493
2,452
2,448
2,242
2,644

4,193
4,324
4,321
4,098
3,939
3,957
3,948
3,594
3,438

39,316
38,372
36,994
35,803
35,055
33,284
34,983
35,247
34,175

7,874
7,537
8,160
8,250
8,445
8,387
8,223
8,041
8,913

1976—Jan.. .
Feb..,
Mar.*
Apr.*,

89,915
92,933
88,780
95,392

12,181
13,232
12,997
14,103

10,514
10,110
10,482
10,147

36,291
37,222
35,077
36,190

30,328
31,728
29,669
34,189

600
642
555
763

49,147
49,659
48,238
49,369

2,449
2,703
2,692
2,782

3,291
2,908
2,745
2,319

35,633
36,628
34,578
35,668

7,774
7,420
8,223
8,599

To banks9

To other foreigners
Payable in dollars

End of period

Total

Deposits
Total

Demand

Time2

U.S.
Treasury
bills and
certifi­
cates

Other
short­
term
liab. 4

Deposits
Total

Demand

Time2

U.S.
Treasury
bills and
certifi­
cates

Other
short­
term
liab. 6

To banks
and other
foreigners:
Payable in
foreign
cur­
rencies

1973............

23,196

17,224

6,941

529

9,743

5,502

2,143

2,359

68

933

469

1974—Dec. 7

/38,619
\38,525

29,676
29,441

8,248
8,244

1,942
1,936

232
232

19,254
19.029

8,304
8,445

2.729
2.729

3.796
3.796

277
277

1,502
1,643

639
639

1975—Apr..
M ay..
June.,
July. .
Aug..,
Sept..
Oct.. .
N ov..,
D ec..,

36,988
37,414
36,620
37,947
39,317
39,518
37,750
41,718
39,615

28,058
28,249
27,261
28,113
29,708
29,764
27,832
31.554
28,988

6,894
6,856
7,075
6,906
6,923
7,982
6,811
7,587
7,549

2,102
1,821
2,009
1,339
1,836
1,775
1,777
1,694
2,140

120
105
99
124
121
89
100
135
335

18,941
19,466
18,078
19,744
20,827
19,918
19,143
22,139
18.964

8,189
8,500
8,775
9,273
9,048
9,200
9,282
9,527
10,036

2,556
2,784
2,855
2,688
2,705
2,881
2,769
2,839
3,248

3,969
4,096
4,324
4,851
4,476
4,541
4,708
4,850
4,901

207
156
176
152
230
272
276
311
349

1,457
1,465
1,421
1,582
1,637
1,506
1,530
1,528
1,538

742
665
584
560
562
554
635
637
591

1976—Jan...
F eb.. .
Mar.®,
Apr.23.

40,767
43,275
40,541
46,024

30,393
32.555
29,731
34,479

6,832
7,418
7,159
7,883

2,162
2,086
2,390
2,422

369
275
217
134

21.030
22,775
19.965
24,039

9,774
10,078
10,255
10,782

2,900
3,111
3,146
3,438

5,061
5,116
5,346
5,406

289
320
282
387

1,523
1,532
1,481
1,551

600
642
555
763

1 Data exclude IMF holdings of dollars.
2 Excludes negotiable time certificates of deposit, which are included
in “Other short-term liabilities.”
3 Includes nonmarketable certificates of indebtedness and Treasury
bills issued to official institutions of foreign countries.
4 Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches, bankers’ acceptances, commercial paper, and negotiable
time certificates of deposit.
5 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American and Asian Development Banks.
6 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates of deposit.
7 Data on the 2 lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage




with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
8 Foreign central banks and foreign central govts, and their agencies,
Bank for International Settlements, and European Fund through Dec.
1972.
' 9 Excludes central banks, which are included in “Official institutions.”
N o t e . —“Short term” obligations are those payable on demand or having
an original maturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 9. Data exclude International Monetary Fund
holdings of dollars; these obligations to the IM F constitute contingent
liabilities, since they represent essentially the amount of dollars available
for drawings from the IMF by other member countries. Data exclude also
U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing
special U.S. notes held by the Inter-American Development Bank and
the International Development Association.

A64

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1974

Area and country

1975

1976

July

Aug.

Sept.

Oct.

Dec.

Jan.

Feb.

Mar.p

Apr.P

Europe:
Austria....................................... .
Belgium-Luxembourg............. .
Denmark......................................
Finland........................................
France..........................................
Germany.....................................
Greece..........................................
Italy..............................................
Netherlands.................................
N orway........................................
Portugal.......................................
Spain............................................
Sweden.........................................
Switzerland..................................
Turkey..........................................
United Kingdom.....................
Yugoslavia..................................
Other Western Europe2 ...........
U.S.S.R........................................
Other Eastern Europe...............

607
2,506
369
266
4,287
9,420
248
2,617
3,234
1,040
310
382
1,138
9,986
152
7,559
183
4,073
82
206

607
2,506
369
266
4,287
9,429
248
2,617
3,234
1,040
310
382
1,138
10,137
152
7,584
183
4,073
82
206

661
2,982
325
361
5,515
5,440
299
1,426
3,539
1,118
279
392
2,010
7,965
106
6,461
106
2,560
29
181

667
2,891
308
406
5,493
5,277
307
1,056
3,301
1,052
268
288
2,203
8,282
134
8,342
104
2,291
50
160

688
2,865
311
391
5,950
4,797
361
1,426
3,059
982
207
459
2,195
8,048
116
6,268
128
2,443
39
272

606
2,918
327
367
6,608
5,047
331
1,398
3,199
886
236
414
2,252
8,205
128
6,722
138
2,428
42
153

635
2,938
361
380
7,172
4,841
313
1,071
3,301
970
190
402
2,241
8,029
120
7,177
175
2,370
38
128

700
2,917
332
391
7,733
4,407
284
1,112
3,148
996
194
426
2,286
8,556
118
6,885
126
2,970
40
200

714
2,697
375
309
7,499
3,873
263
1,052
3,132
888
243
445
2,266
8,611
88
7,611
83
2,313
45
160

693
2,460
434
313
6,480
4,518
340
1,044
3,558
925
221
400
2,312
8,648
104
8,236
178
2,116
43
201

525
2,415
678
334
6,210
4,245
261
1,338
3,124
770
209
386
2,287
8,852
106
6,482
222
2,136
38
144

559
2,332
681
341
4,856
5,880
292
1,504
3,023
926
213
462
2,352
9,016
113
6,589
179
1,947
34
161

T otal....................................

48,667

48,852

41,755

42,882

41,005

42,405

42,853

43,821

42,669

43,224

40,765

41,461

Canada.............................................

3,517

3,520

3,921

3,637

3,944

3,567

4,091

3,075

3,885

4,721

4,233

4,173

886
1,448
1,034
276
305
1,770
488
272
147
3,413

886
1,054
1,034
276
305
1,770
510
272
165
3,413

1,061
1,991
853
301
376
1,809
657
228
190
3,964

1,054
2,190
921
280
367
1,824
649
208
160
4,242

984
1,503
1,016
293
379
1,872
752
245
208
4,247

1,135
2,221
1,083
270
366
1,956
765
247
168
3,531

1,150
2,989
1,075
266
387
2,183
840
249
175
3,188

1,147
1,834
1,227
317
414
2,078
1,097
244
172
3,290

1,208
3,197
1,191
248
484
1,899
1,145
219
185
2,711

1.134
2,946
1.135
248
536
2,048
953
223
204
2,571

1,169
1,709
1,320
273
520
2,033
778
234
242
2,574

1,238
4,606
1,421
317
571
2,133
961
219
216
2,742

1,316

1,316

1,417

1,371

1,469

1,399

1,368

1,500

1,431

1,455

1,626

1,712

158
526

158
596

104
1,603

105
1,534

119
1,897

113
1,046

118
2,141

129
1,501

129
1,613

143
2,441

118
1,746

122
2,517

12,038

11,754

14,554

14,907

14,983

14,305

16,131

14,950

15,665

16,037

14,343

18,774

50
818
530
261
1,221
389
10,897
384
747
333

50
1,015

55
1,054

683

623

133
527
369
11,669
366
632
284

214
289
343
11,218
374
669
255

104
1,061
684
194
612
364
9,940
400
580
194

123
1,025

577

94
1,058
741
214
234
322
11,128
342
604
207

93
1,051

540

181
418
342
10,776
386
593
193

126
369
386
10,142
390
698
252

263
1,010
667
203
762
292
10,544
395
601
279

224
1,072
682
324
583
309
11,737
382
616
224

101
1, 100
741
338
498
346
12,232
361
605
225

120
1,134
709
423
920
319
12,789
360

4,608
820

4,432
767

4,804
919

5,111
970

5,785
925

5,987
885

6,440
869

6,428
970

6,535
933

6,699
967

7,145
1,020

Latin America:
Argentina.................... ................
Bahamas......................................
Brazil............................................
Chile.............................................
Colombia.....................................
Mexico..........................................
Panama........................................
Peru..............................................
Uruguay.......................................
Venezuela....................................
Other Latin American re­
publics ......................................
Netherlands
Antilles
and
Surinam....................................
Other Latin America.................
T otal....................................

Asia:
China, People’s Rep. of
50
(China Mainland)..................
818
China, Republic o f (Taiw an)..
530
Hong Kong.................................
India..............................................
261
1,221
Indonesia.....................................
386
Israel.............................................
Japan............................................ 10,897
384
Korea............................................
747
Philippines...................................
333
Thailand......................................
Middle East oil-exporting
4,633
countries 3................................
813
Other............................................

” '244’

T otal....................................

21,073

21,082

20,785

20,770

21,025

20,844

21,589

21,443

22,414

23,621

24,214

Africa:
Egypt............................................
South Africa...............................
Oil-exporting countries4...........
Other............................................

103
130
2,814
504

103
130
2,814
504

253
132
2,785
563

295
147
2,872
552

188
254
2,649
560

185
177
2,447
575

255
108
2,372
643

342
168
2,238
622

177
218
2,134
563

180
133
2,208
609

314
186
1,919
680

231
177
2,256
598

T otal....................................

3,551

3,551

3,732

3,

3,651

3,385

3,377

3,370

3,091

3,131

3,099

3,262

Other countries:
Australia......................................
All other......................................

2,742
89

2,742
89

3,231
77

3,114
75

2,912
78

2,766
80

2,712
87

2,013
114

2,046
143

2,070
131

2,001
125

1,931

T otal....................................

2,831

2,831

3,308

3,189

2,989

2,846

2,800

2,127

2,190

2,201

2,126

2,015

Total foreign countries.................

91,676

91,589

88,055

89,252

87,598

87,352

90,842

88,786

89,915

92,933

88,780

95,392

International and regional:
International5............................
Latin American regional..........
Other regional6..........................

2,900
202
69

2,900
202
69

4,173
181
90

4,500
215

4,621
186
94

4,303
190
90

4,217
193
61

5,069
187
37

4,629
219
85

4,189
261
70

4,459
176
128

5,269
141
108

4,763

5,519

T otal....................................

3,171

3,171

4,444

4,804

4,901

4,583

4,471

5,293

4,933

4,520

Grand total.........................

94,847

94,760

92,500

94,055

92,499

91,935

95,313

94,078

94,848

97,453

For notes see opposite page.




93,542 100,911

JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A65

SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY-Continued
(End of period. Amounts outstanding; in millions of dollars)
Supplementary data7
1974

1973
Area and country

1974

1973

1975

Dec.

Apr.

Dec.

Apr.

Dec.

Other Western Europe:
Cyprus.....................................
Iceland.....................................
Ireland, Rep. o f......................

19
8
62

10
11
53

7
21
29

17
20
29

6
33

Other Latin American republics:
Bolivia.....................................
Costa Rica...............................
Dominican Republic..............
Ecuador...................................
El Salvador.............................
Guatemala...............................
H aiti.........................................
Honduras.................................
Jamaica....................................
Nicaragua................................
Paraguay..................................
Trinidad and Tobago.............

68
86
118
92
90
156
21
56
39
99
29
17

102
88
137
90
129
245
28
71
52
119
40
21

96
118
128
122
129
219
35
88
69
127
46
107

93
120
214
157
144
255
34
92
62
125
38
31

110
124
169

Other Latin America:
Bermuda..................................
British West Indies.................

242
109

201
354

116
449

100
627

Other A sia:.................................
Afghanistan.............................
Burma......................................

22
12

11
42

18
65

19
49

in

260
38
99
41
133
43

41

1 Data in the 2 columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in
coverage with those for the preceding date; figures in the second column
are comparable with those shown for the following date.
2 Includes Bank for International Settlements.
3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).

Area and country

Dec.

1975

Apr.

Dec.

Apr.

2
6
3
62
58
105
141
13

4
6
3
68
40
108
165
13
98

4
22
3
126
63
91
245
14
126

4
30
5
180
92
118
215
13
70

Other Africa:
Ethiopia (incl. Eritrea)
Ghana.........................
Kenya.........................
Liberia.........................
Southern Rhodesia. . .
Sudan..........................
Tanzania.....................
Tunisia........................
Uganda.......................
Zambia.......................

79
20
23
42
2
3
12
7
6
22

118
22
20
29
1
2
12
17
11
66

95
18
31
39
2
4
11
19
13
22

All other:
New Zealand..............

39

33

47

Other Asia—Cont.:
Cambodia..............
Jordan...................
Laos.......................
Lebanon................
Malaysia...............
Pakistan.................
Singapore..............
Sri Lanka (Ceylon)
Vietnam.................

Dec.

39
2
77
74
13
62

60
19
53
1
12
29
22
78
36

42

4 Comprises Algeria, Gabon, Libya, and Nigeria.
5 Data exclude holdings of dollars of the International Monetary Fund.
6 Asian, African, and European regional organizations, except BIS,
which is included in “ Europe.”
7 Represent a partial breakdown of the amounts shown in the other
categories (except “Other Eastern Europe”).

LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
To foreign countries

Country or area

End of period

Total

To
inti.
and
regional

1972..............................
1973..............................
1974..............................

1,018
1,462
1,285

580
761
822

439
700
464

93
310
124

259
291
261

87
100
79

165
159
146

63
66
43

260
470
227

1975—Apr....................
M ay..................
June...................
July...................
Aug...................
Sept...................
Oct....................
Nov...................
Dec....................

1,463
1,497
1,460
1,493
1,446
1,468
1,385
1,391
1,757

620
579
512
432
372
395
311
297
415

843
918
948
1,060
1,074
1,073
1,072
1,093
1,340

521
601
806
1,041
751
753
748
749
951

253
248
247
242
243
241
241
261
289

68
69
70
77
81
79
83
83
100

129
123
120
121
120
118
118
115
164

57
57
59
61
61
61
61
61
61

1976—Jan....................
Feb....................
Mar.P...............
Apr.23................

1,875
1,859
2,063
2,076

306
286
157
172

1,567
1,571
1,905
1,903

1,042
1,065
1,091
1,081

402
398
443
385

123
107
371
437

264
262
256
259

65
64
78
87

Total

Official
institu­
tions

Other
Banks1 foreign­
ers

1 Excludes central banks, which are included with “Official institutions.”
2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,




Ger­
many

United
King­
dom

Middle
East2

Other
Asia3

All
other
coun­
tries

136
132
115

94

33
83
8

10
16
20

205
199
197
201
202
201
206
206
256

121
121
121
121
123
121
126
147
140

484
569
599
709
719
721
712
712
913

10
5
2
5
6
6
4
4
9

22
22
23
24
23
23
24
24
24

373
369
393
416

142
141
148
99

1,005
1,024
1,310
1,340

8
12
16
14

41
26
40
35

Total
Latin
Total
Europe America

Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
3 Until Dec. 1974 includes Middle East oil-exporting countries.

A66

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976
10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES
(End of period; in millions of dollars)
1974

Area and country

1975

Dec.

May

Europe:
Belgium-Luxembourg.....................
Germany...........................................
Sweden.............................................
Switzerland......................................
United Kingdom.............................
Other Western Europe...................
Eastern Europe...............................

9
251
30
493

T otal.........................................

June

July

5

14
209
251
34
564
r97
5

14
209
252
37
522
97
5

14
209
252
37
536
98
5

885

1,174

1,135

1,151

C anada.................................................

713

412

412

Latin America:
Latin American republics...............
Netherlands Antilles1 ......................
Other Latin America.......................

83
5

118
4

11

T otal.........................................

100

Asia:
Japan................................................
Other Asia.......................................

3,498

T otal.........................................

Aug.

14

1975

Sept.

Oct.

Nov.

Dec.

Jan.

Mar.*

Apr.*

374
199
4

68

13
238
275
72
370
204
4

13
247
276
75
386
371
4

14
228
276
89
389
455
4

Feb.

5

14
217
275
44
501
114
5

14
216
275
54
441
152
5

13
216
275
58
414
152
4

13
215
276
55
363
117
4

1,169

1,170

1,157

1,134

1,044

1,146

1,176

1,372

1,455

408

406

404

399

400

393

393

416

416

422

13
134
5

13
178
5

13
149
5

13
149
5

13
158

33
160

33
161

31
131

31

6

6

33
159
7

31

6

8

121
8

120
8

133

152

196

167

168

177

199

200

199

170

160

159

212

3,496
1,291

3,496
1,397

3,496
1,418

3,496
1,498

3,502
1,648

3,520
1,798

3,269
1,849

3,271
2,075

3,268
2,195

3,212
2,337

3,217
2,637

3,217
2,830

3,709

4,787

4,893

4,914

4,994

5,149

5,319

5,118

5,346

5,473

5,549

5,854

6,047

151

181

181

201

211

261

311

311

321

340

350

396

411

Total foreign countries.......................

5,557

6,687

6,773

6,870

6,945

7,153

7,362

7,161

7,304

7,552

7,662

8,198

8,495

International and regional:
International....................................
Latin American regional..................

97
53

342
57

29
44

128
40

66

52
35

324
35

60
29

322
29

593
19

1,034
19

957
19

153
16

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

150

399

74

169

101

87

359

89

351

612

1,053

975

170

7,048

7,240

7,721

7,250

7,655

8,164

8,715

9,173

8,665

10

r88

12

Africa...................................................

210

278
41
520
102

13
212

276

All other...............................................

Grand total...............................

5,708

7,087

6,847

7,039

1 Includes Surinam until Jan. 1976.
N o t e . —Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1

35

year, and are based on a benchmark survey of holdings as of Jan. 31,1971,
and monthly transactions reports (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 foreign currencies

Payable in dollars
End of period

Loan:5tO--

Total
Total

1972.............................
1973.............................

Total

15,676
20,723

14,830
20,061

5,671
7,660

1974.............................

39,030

37,835

11,301

1975—Apr....................
May..................
June..................
July...................
Aug...................
Sept...................
Oct....................
Nov...................
Dec....................

42,753
45,866
45,710
45,542
45,441
45,564
47,697
48,127
49,876

41,651
44,810
44,497
44,368
44,293
44,433
46,390
46,846
48,588

1976—Jan.................... 51,275
Feb.................... 53,749
Mar.p ............... 53,390
Apr.*................. 55,467

50,043
52,348
52,069
54,018

Official
institu­
tions
163
284

Accept­
Collec­ ances
made
tions
out­ for acct.
Banks 1 Others2 stand­ of for­
ing
eigners

Total

223
119

182
115

1,195

668

289

238

1,102

1,175
1,148
1,130
1,306
1,281
1,288

619
478
591
608
610
576
734
625
612

241
301
335
296
240
236
231
340
301

242
277
286
271
298
319
341
316
376

1,232
1,401
1,321
1,449

682
728
794
920

263
241
145
156

286
431
382
373

2,538
2,838

3,276
4,307

3,226
4,160

2,657
3,935

846
662

381

7,342

3,579

5,637

11,237

9,659

10,642
11,853
11,347
11,705
13,084
12,706
12,632
13,075
13,352

362
366
494
572
626
572
632
670
586

6,499
7,636
6,796
6,837
7,960
7,520
7,483
7,929
7,736

3,780
3,852
4,057
4,296
4,499
4,614
4,517
4,476
5,030

5,342
5,537
5,345
5,383
5,314
5,314
5,465
5,363
5,467

11,441
10,959
10,641
10,204
9,977
10,071
10,134
10,610
11,132

14,226
16,460
17,165
17,076
15,917
16,342
18,160
17,799
18,637

13,609
14,233
13,559
14,555

669
754
763
769

8,132
8,699
7,995
8,846

4,808
4,771
4,801
4,940

5,311
5,191
5,367
5,359

11,047
10,994
11,134
11,297

20,077
21,941
2 2 ,0 1 0

22,808

Other

441
428

2,970
4,538

1 Excludes central banks which are included with “ Official institutions.”
2 Includes international and regional organizations.




Other

Foreign
govt, se­
Deposits curities,
with for­ coml.
eigners and fi­
nance
paper

1,056
1,212

JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A67

12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)

Area and country

Dec.
Europe:
21

384
46
122

Germany...................................................

Portugal............................................

673
589
64
345
348
119
20

United Kingdom .....................................

196
180
335
15
2,570

Other Western Europe.............................
U.S.S.R.....................................................
Other Eastern Europe.............................

46
131

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

Latin America:

Venezuela..................................................
Other Latin American republics.............
Netherlands Antilles and Surinam.........
Other Latin America...............................
Total..................................................
Asia:
China, People’s Rep. of (China Mainland)
China, Republic of (Taiwan)..................

Israel.........................................................
Japan........................................................
Korea........................................................
Middle East oil-exporting countries1. . . .
Other.........................................................
Africa:
Egypt.........................................................

1975

1974

22
22

Aug.

July

16
620
62
143
666

482
46
363
288
91
27
257
155
254
26
3,458
36
22

80
130

Sept.

28
598
60
143
741
448
50
336
338
106

20

536
46
130
906
443
54
363
313
102

214
185
290
43
4,067
40
62
79

18
245
182
214
56
3,724
37
23
106

110

110

22

1976
Oct.

Nov.

Dec.

19
555
50
127
1,329
496
56
438
264

32
463
54
133
1,195
659
91
418
285
92
19
261
182
314

15
352
49
128
1,403
427
49
370
300
71
16
249
167
232

121

86

102

15
256
152
274
54
3,792
34
22

144
96

3,858
55
25
165
103

Jan.

4,586
38
27
103
114

Feb.

20

401
55
132
1,336
486
55
369
316
66
20

274
124
245
59
4,506
37
26

Mar.P

23
417
55
120

1,451
426
52
402
267
63
20

262

22

430
55
128
1,240
474
53
360
269
66
21

231

Apr.P

39
398
59
105
1,205
447
63
406
290
71
18
241
105
400

111

121

124

278
82
4,707
49
29
84
159

340
73
4,429
64
29
85
109

5,144
50
27
63
107

101

68

6,245

7,222

7,960

7,630

8,275

8,526

8,781

8,752

9,056

8,599

9,306

2,776

2,651

2,340

2,626

2,728

2,742

2,812

3,015

2,978

2,917

3,253

720
3,398
1,415
290
713
1,972
503
518
63
704

1.105
7,813
1,390
472

1,343
7,250
1,536
351
662
2,623
903
599
52
1,051
1,041
59

1,229
6,856
1,785
381
649
2,565

1,246
7,981
2,132
312
651
2,776
1,262
624

62
1,142

1,219
6,432
1,491
405
684
2,705
721
624
54
1,109
1,014
57
1,684

1,203
7,513

2,676
581
626
90
902
1,055
62
1,679

1,115
6,627
1,505
435
667
2,762
578
646
73
956
1,005
54
2,091

1,045
53
3,059

1,338
9,830
2,173
343
586
3,079
1,167
634
62
925
1,061
43
3,253

1,290
10,303
2,318
324
545
3,034
1,108
597
46
1,040
986
33
2,708

1,372
10,294
2,351
349
539
3,236
785
638
39
1,077
989
32
3,711

12,366

19,118

18,516

18,199

22,224

24,495

24,331

25,412

4
500
223
14
157
255
12,514
955
372
458
330
441

13
463

5
606
231

22

10

23
113
362
10,310
1,462
481
461
527
544

13
503
190
38

735
258

358
10,294
1,502
410
494
493
572

91
398
10,400
1,515
340
474
624
651

17
729
225
26
131
365
9,870
1,715
507
516
600
705

16,222

14,960

14,956

111

866

666

201

88

2 ,2 0 0

2 ,2 0 2

565
56
980
969
46
2,555

360
689
2,800
1,032
588
51
1,086
980
49
1,816

19,673

19,522

20,417

11

886

11

68
1,001

389
10,253
1,555
338
501
446
702

681
258
16
92
387
10,429
1,505
347
499
506
665

105
491
10,760
1,556
377
495
524
683

725
234
19
129
419
10,109
1,605
434
535
525
734

15,357

15,156

15,396

16,025

15,477

21

601
257
17
86

21

22

775
229
25
162
307

18
793
200

1,600
510
537
646
731

26
162
314
10,114
1,713
520
533
588
649

15,405

15,747

15,631

101

10,202

Oil-exporting countries2 ..........................
Other.........................................................

329
115
300

134
489
144
297

141
492
134
347

125
504
190
343

127
513
207
380

130
540
215
409

104
546
231
351

106
547
213
349

546
230
330

103
575
226
270

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

855

1,064

1,114

1,162

1,227

1,294

1,231

1,215

1,207

1,174

1,252

466
99

446
80

466

509
80

532
105

554
91

535
73

503
87

492
113

521
98

498
U3

Other countries:
Australia...................................................

88

301

565

526

554

589

638

645

608

589

605

619

611

39,030

45,541

45,438

45,562

48,126

49,875

51,272

53,747

53,387

55,465

1

3

1

47,696
*

1

1

3

2

3

2

39,030

45,542

45,441

45,564

47,697

48,127

49,876

51,275

53,749

53,390

55,467

1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Comprises Algeria, Gabon, Libya, and Nigeria.
N o t e . — Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans




110

631

210

made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976

A68

13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
Type

Country or area

Payable in dollars
End of
period

Total

Loan s to—

Total

Official
institu­
tions

Other
Banks1 foreign­
ers 2

Other
long­
term
claims

Payable
in
Total
foreign Europe
curren­
cies

Canada

Total
Latin
America

Japan

Middle
East 3

Other
Asia4

All
other
coun­
tries2

384

918
1,331
977

514
536
542

1,006
1,047
1,150
1,223
1,204
1,195
1,214
1,218
1,276

633
683
696
723
728
775
835
931
1,016

1,278
1,270
1,195
1,279

1,030
1,093
1,115
1,174

1972.................
1973.................
1974.................

5,063
5,996
7,183

4,588
5,446
6,494

844
1,160
1,333

430
591
931

3,314
3,694
4,230

435
478
609

40
72
80

853
1,272
1,907

406
490
501

2 ,0 2 0

2,116
2,613

353
251
258

1975—Apr , .
M ay.. . .
June.. . .
July. . . .
Aug. . ..
Sep........
Oct........
N ov.. . .
Dec.......

7,619
7,906
7,995
8,308
8,265
8,539
8,860
9,070
9,485

6,935
7,215
7,184
7,425
7,394
7,637
7,907
8,050
8,435

1,241
1,283
1,274
1,292
1,276
1,348
1,266
1,303
1,380

1,117
1,198
1,226
1,319
1,336
1,364
1,516
1,547
1,692

4,578
4,733
4,683
4,815
4,782
4,926
5,125
5,201
5,362

605
610
719
792
787
809
840
903
934

78
81
92
90
85
93
114
118
116

2,188
2,325
2,303
2,344
2,395
2,426
2,534
2,529
2,675

505
491
461
471
438
508
595
569
555

2,798
2,864
2,880
3,037
3,003
3,132
3,168
3,281
3,448

242
254
264
270
259
265
292
293
296

1976—Jan........
Feb.......
Mar.p. .
Apr.P...

9,412
9,511
9,775

8,349
8,352
8,616
8,815

1,290
1,268
1,316
1,335

1,636
1,632
1,737
1,845

5,423
5,452
5,563
5,636

945

118
148
149
116

2,677
2,602
2,702
2,721

552
576
570
548

3,382
3,471
3,605
3,786

289
289
292
307

10,012

1,012
1,011

1,081

247
242
241
241
237
237
222

249
220

204
210

296
196

Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
(Trucial States).
4 Until Dec. 1974 includes Middle East oil-exporting countries.

1 Excludes central banks, which are included with “Official institutions.”
2 Includes international and regional organizations.
3 Comprises Middle East oil-exporting countries as follows: Bahrain,

14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)
U.S. corporate
securities2, 3

Marketable U.S. Treas. bonds and notes 1

Foreign bonds 3

Foreign stocks 3

Net purchases or sales ( —)
Period
Total

Intl.
and
regional

Pur­
chases

Foreign
Total4 Official

Net pur­ Pur­
Sales chases or chases
sales ( —)

Sales

Net pur­
chases
sales ( —)

PurSales

Sales

1,729
1,907
1,538

1,554
1,722
1,719

176
185
-1 8 2
-6 2

Net pur­
chases or
sales ( —)

Other

305
-4 7 2
1,948

-165

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

101
201

470
-573
1,747

465
-642
1,516

6 18,574 13,810
69 16,183 14,677
230 20,360 15,212

4,764
1,506
5,148

1,474
1,036
2,386

2,467
-993
3,254 -2 ,2 1 8
8,687 -6 ,3 0 0

1976—Jan.-Apr.P___

1,0 1 0

-181

1,191

1,033

158 10,085

7,817

2,268

1,565

4,388

-2 ,8 2 4

682

745

-2 1 0

-4 3
92

-6 2
123
56
41
117
175
173
-171

-31
31
56
-4 0
31
37
-3 0
21

1,397
1,679
1,332
1,278
1,338
1,124
1,362
1,231
958

243
167
422
973
82
134
662
374
901

167
172
215
315
158
194
195
248
282

-171
338
345
-173
852
-637
-693
1,008
-160
318
285
-9 1
678
-4 8 4
-743
991
1,471 -1 ,1 9 0

155
145
129
109
89
91
137
107
148

141
157
143
119
256
79
161
78
97

-167

121

1,640
1,846
1,754
2,251
1,421
1,257
2,023
1,605
1,859

247

241

110

101

6
10

2,798
2,503
2,524
2,260

2,069
2,086
1,972
1,689

729
418
552
570

462
402
360
341

-339
800
1,547 -1 ,1 4 5
-923
1,282
758
-4 1 7

145
162
193
182

139
218
245
143

-5 6
-5 1
40

197 3
197 4
197 5

-2 5 4
3
-2 4 0
192
9
192
481
-470
405

-8 9
-326
95
-6 7
-1 4
272
-2 7 0
262

1976—Ja..................... n 508
551
Feb..................
458
M ar.p..............
Apr.P............... -5 0 8

261
441
-7 8
-805

1975—Ap r
May.................
June.................
July..................
Aug..................
Sept..................
Oct...................

N ov....................

Dec..................

86

96
77
206
209
-2 0 1

143

536
297

398
294

20

138
4

1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions of foreign countries.
2 Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.
3 Includes transactions of international and regional organizations.
4 Includes transactions (in millions of dollars) of oil-exporting countries
in Middle East and Africa as shown in the tabulation in the opposite
column:




Middle East

Africa

1,773

170

1976—Jan.-Apr.p

783

90

1975—Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

50
175
106

10
20

1

20
10

1976—Jan.
Feb.
Mar.p
Apr.P

115
116
282
270

1975P

80
150
150
51
176

50
50
10
20
10

45
15

14
-1 2

-1 5

-1 0

11

-2 4
29
51
6

JUNE 1976 d INTL. CAPITAL TRANSACTIONS OF THE U.S.

A69

15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)
Period

Pur­
chases

Sales

1973.....................
1974.....................
1975.....................

12,767
7,634
15,066

9,978
7,095
10,600

2,790
540
4,465

Ger­
many

Net pur­
chases or France
sales ( —)

Nether­ Switzer­
lands
land

United
King­
dom

Total
Europe

Total
Canada America
Latin

Middle
East 1

Other
Asia 2 Other5

439
203
262

339
330
359

686

39
250

36
897

366
-377
569

2,104
281
2,464

356

4
-3 3
-7

1,470

577
288
140

39
21

2

99
-6

1976—Jan.-Apr. *

7,982

6 ,1 0 2

1,880

104

184

-3 7

187

247

752

127

140

780

63

1975—Apr...........
May..........
June..........
July..........
Aug..........
Sept..........
Oct............
Nov..........
Dec...........

1,318
1,527
1,321
1,669
1,153
882
1,407
1,114
1,355

1,058
1,149
1,063
1,080
712
642
1,042
809

-1 5

23
4

44

2
1
8

-1 5
7

119
113
87
153
82
72
130

28

136
193
152
396
302
123
142
132
297

2

71
139
83
64
36
42
123

54
59
36
75
38
7
48
44
32

-5
36

31
52
7
-7
40
40

26
27
19
80
47

-1

122

686

259
378
258
589
441
240
365
304
669

102

-9

268

1976—Jan...........
Feb...........
M ar.*. . . .
Apr.*........

2,060
2,095
2,137
1,690

1,544
1,724
1,555
1,279

517
371
582
410

1

136

-2

88

208
133
327
84

40
48
16
23

76

198
175
153
254

-6

32
55
52

1

10

16
22

14
79

22

17
-5
64
-4 8
-1 4

12

26

10

100

31

10

41
69
49

63
147

-6

-2 1

1
Comprises Middle East oil-exporting countries as follows: Bahrain,
Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
(Trucial States).

21
20
21
20

13
-6

59
36

11

28
25

10

5

36
9

-2

-1 9

2

6

26
32

16
8
6

21
12

4
-3

13

1

-6

5
42

5
16

22

-1

2 Until 1975 includes Middle East oil-exporting countries.
3 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

197 3
197 4
197 5
1976—Jan.-Apr. *
1975—Ap r
May........
June........
July.........
Aug.........
Sept.........
Oct..........

France

1,948
966
681

201

96
82

-1 1

389

6

-1 6

1
3
9
27
13
-1 3

-2 1 2

164
384
-3 5 8
-107
296
69
232

N ov.........

Dec.........
1976—Ja............ n
Feb.........
Mar .p . . .
A pr.*.. . .

Ger­
many

1

39

212

47
-3 1
160

-3 3
33

Canada

Total
Latin
America

1,204
719
116

49
45
127

Middle
East 1

Other
Asia2

Total
Other Intl. and
Africa countries regional

44
43
30

1,437

588
632
-4 2

*
*
5

-1 9
183
-1 6

307
96
116

275
373
80

-4 5

-3

26

-2 0 0

-6 5

48

13

463

-8 9

10

2
1

-2 6
-1

35
7
5
35

-9 9
-81
32
80
-6 9

-1 0 0

5
7
4
33

3
1
*

80
81
65
179
-1
82
209
75
140

1
-1 1

*

*
16
-3
6

-5 0

8

2

3

-1
2

4

3
3

Nether­ Switzer­ United
Total
lands
land
Kingdom Europe

-1

-5 6
9

8
6

-1 8
25

-6

-7

2

12

-1 7
3

9

-1
2

-2
20

121

89
-41
56

8

-3
-5

-161
-2
-1 1

5
4

-2 6

1 See note 1 to Table 15.
2 See note 2 to Table 15.

-7 2
58
183
-7 3
-1 9
51
-2 5
74

-2
6

7
23
-7 0
-2 5

29
4
9
7

6

-5
38

1

1
5
11
6
6

3
6
1

3

219
30
35
179

-1
4
1

-7
-4
4
-1 2

*

*

*
*

*
3
1
1

10
10
1

52
-483
-993
30

-2 0

*
*
*
*
*
*
*
*
*

-6

-218
38
-1 7
-2 9 2
-162
-1 1
11

16

-2 1

-2
1

-1 0

-2 0

4
7

-1 3
18

-1 0

20

-3 4
-1 4

*
*

4

N o t e . —Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new
debt securities sold abroad by U.S. corporations organized to finance di­
rect investments abroad.

17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA

18.
FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS

(In millions of dollars)

(Amounts outstanding; in millions of dollars)

Period

Total

Intl.
and
re­
gional

Total
foreign
coun­
tries

Eu­
rope

Latin
Canada Amer­ Asia
ica

1973
1974
1975................

139 " —957 —141
—569 —120 —168
—818
—2 033 —60 —1 973 —546 —1 508 —93
144
—6*515 -2,225 - 4 ’,290 - 4 7 —3* 178 -306 -619

1976—
Jan.-Apr.*

- 2 ,8 8 6

-1 3 0

-2 ,7 5 6

1975—Apr___
M ay. . .
June. . .
July.. . .
Aug.. . .
Sept.. . .
Oct
N o v ....
Dec.. . .

-1 5 7
-5 7
31
—184
*
-6 5 5
-6 9 9 -4 7 5
-3 6 2
-2 1
-8 0
18
5
—508
-7 1 4
-6 2
-1 ,1 3 9 -839

-215
-655
-2 2 4
-341
-9 8
—513
-652
-299

1976—Jan.......
Feb___
M ar.*..
A p r.* ..

-333
- 1,201
-9 7 4
-3 7 8

-1 0 0

94
-426
-1 3 9 -1,063
9
-9 8 4
-9 4
-2 8 4




-2 4 2
-5 7
39
-2 2

-2 6
24
-1 9
48
-2 7
80
-109
33
-1 6 7
*

-2 ,2 8 5

-7 0

-3
17
*
-167
*
-478
-109
-2 5
-2 0 4 -164
25
-129
—460 —48
-5 8 4
6
-310
9
-3 0 4
-973
-7 2 7
-281

Other
countries

Af­
rica

-143
-5 9
-8 8

-3 0
-6 9

3
37
7
22
15 -1 5 4
-9
*
-2
2

7
2
2

—127
*
4

1

1

24
—56
3
-7 8

-1
_3

6

-2
-1

-4 8

-4
-9
5 -1 1 0
-7 2
-1 4
-1 5
6

-3
-4
-5
4

1

, ^
End of
period

Credit
balances
(due to
foreigners)

Debit
balances
(due from
foreigners)

1973—Sept............................
Dec............................

290
333

255
231

1974—Mar...........................
June...........................
Sept............................
Dec............................

383
354
298
293

225
241
178
194

1975—Mar............................
June...........................
Sept............................

349
380
343
365

209
233
258
319

1976—Mar.*.........................

411

333

1

2

—14
2
2

N o t e . —Data represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.

A70

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976
19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
Claims on U.S.
Location and currency form

IN ALL FOREIGN COUNTRIES

IN UNITED KINGDOM
Total, all currencies.............................

Payable in U.S. dollars........................

IN BAHAMAS AND CAYMANS i
Total, all currencies.............................

For notes see p. A-74.




Month-end

Total

Total

1973—Dec........... 121,866
1974—Dec........... 151,905

5,091
6,900

1975—Mar...........
Apr...........
May..........
June..........
July...........
Aug...........
Sept.r.......
Oct.r ........
Nov . r .......
Dec.r ........

5,328
5,832
7,727
5,540
5,919

Parent
bank

Claims on foreigners

Other

Total

Other
branches
of parent
bank

Other
banks

Non­
Offi­
bank
cial
for­
insti­
tutions eigners

Other

4,464

1 ,886

3,205 111,974
2,435 138,712

19,177 56,368
27,559 60,283

2,693 33,736
4,077 46,793

4,802
6,294

2,689
2,780
2,838
3,198
3,131
3,054
3,307
3,027
2,928
3,061

28,330
29,195
27,581
30,870
30,153
31,283
31,508
32,677
33,519
34,491

4,407
4,353
4,494
4,836
4,796
4,892
4,861
5,226
5,504
5,874

49,400
50,108
50,695
51,100
50,837
51,566
51,803
52,950
52,773
54,145

6,127
5,836
6,083
6,287
6,561
6,537
6,333
6,495
6,780
6,298

143,749
143,948
143,099
150,515
148,224
150,196
153,191
155,067
156,154
162,914

61,611
60,292
60,330
63,710
62,438
62,455
65,019
64,214
64,357
68,403

155,204
155,616
156,909
162,342
160,703
165,835
166,098
169,480
171,624
175,934

6,574
7,919
8,691
6,723

2,638
3,052
4,889
2,342
2,788
6,048
3,267
4,892
5,763
3,661

1976—Jan.' ........ 178,707
Feb........... 180,611
Mar.**....... 185,785

7,986
8,936
6,692

4,998
5,903
3,450

2,988 164,483
3,033 165,225
3,241 172,596

36,646 66,583
34,709 69,106
38,380 72,211

6,104 55,151
6,316 55,094
6,639 55,365

6,237
6,450
6,498

1973—Dec........... 79,445
1974—Dec........... 105,969

4,599
6,603

1,848
4,428

2,751
2,175

73,018
96,209

12,799 39,527
19,688 45,067

1,777 18,915
3,289 28,164

1,828
3,157

1975—Mar...........
Apr...........
May..........
June..........
July...........
Aug...........
Sept.r.......
Oct. r ........
Nov.r .......
Dec.r ........

107,519
108,399
111,638
117,296
117,268
121,478
123,139
125,893
128,739
132,881

5,014
5,467
7,318
5,113
5,513
8,778
6,237
7,501
8,336
6,388

2,607
3,009
4,825
2,280
2,737
5,995
3,210
4,817
5,711
3,624

2,407
2,458
2,493
2,833
2,776
2,783
3,027
2,684
2,625
2,764

99,635
100,230
101,383
109,180
108,279
109,423
113,945
115,213
117,121
123,470

19,836
20,993
21,281
24,529
24,180
25,071
25,444
26,555
27,494
28,490

3,604
3,599
3,685
3,949
3,929
4,148
4,040
4,363
4,646
4,950

30,078
30,465
31,015
31,569
31,598
32,141
32,981
34,262
34,009
35,266

2,870
2,702
2,938
3,003
3,476
3,277
2,958
3,178
3,282
3,023

1976—Jan.r ........ 134,275
Feb........... 135,873
Mar .*3....... 137,768

7,650
8,621
6,413

4,958
5,858
3,403

2,692 123,538
2,763 123,999
3,010 128,248

29,776 52,671
28,362 54,492
30,124 56,077

5,228 35,863
5,364 35,782
5,719 36,327

3,086
3,253
3,107

1973—Dec...........
1974—Dec...........

61,732
69,804

1,789
3,248

738
2,472

1,051
776

57,761
64,111

8,773 34,442
12,724 32,701

735 13,811
788 17,898

2,183
2,445

1975—Mar...........
Apr...........
May..........
June..........
July...........
Aug...........
Sept...........
Oct............
Nov...........
Dec...........

69,654
69,248
68,707
70,751
70,382
72,455
72,120
72,742
73,924
74,883

1,798
2,017
2,535
1,834
1,904
3,795
2,042
2,681
3,112
2,375

982
1,126
1,689
641
807
2,698
1,076
1,699
2,137
1,449

817
891
845
1,192
1,097
1,097
967
982
975
926

65,693
65,330
64,269
66,277
66,428
67,923
67,631
68,494
70,354

12,806
13,314
12,491
13,765
14,414
15,213
15,249
16,555
17,549
17,557

929
919
920
948
923
948
825
830
852
881

17,699
18,018
18,415
17,522
17,509
17,268
17,091
17,440
16,904
16,814

2,163
1,902
1,904
2,049

1976—Jan.r ........
Feb...........
Mar .23.......

73,437
72,963
74,668

2,253
2,947
2,076

1,469
2,270
1,237

784
677
839

68,983
67,843
70,367

18,026 33,094
16,050 34,887
17,363 36,703

1,034 16,828
964 15,941
927 15,374

2,174
2,224

1973—Dec...........
1974-Dec...........

40,323
49,211

1,642
3,146

730
2,468

912
678

37,816
44,693

6,509 23,389
10,265 23,716

510 7,409
610 10,102

865
1,372

1975—Mar...........
Apr...........
May..........
June..........
July...........
Aug...........
Sept...........
Oct............
Nov...........
Dec...........

48,939
48,797
48,506
51,365
51,665
53,456
54,256
54,192
56,221
57,361

1,687
1,885
2,404
1,669
1,742
3,661
1,910
2,552
2,988
2,257

974
1,109
1,671
623
793
2,681
1,054
1,687
2,123
1,445

713
776
733
1,045
949
980
856
865
865
812

46,039
45,923
45,180
48,713
48,787
48,763
51,369
50,494
52,145
54,137

10,373
10,995
10,656
12,054
12,664
13,315
13,488
14,654
15,555
15,645

736
721
698
721
713
740
596
592
638
648

1 ,212

1976—Jan.r
Feb...........
Mar.P.......

55,067
55,041
55,115

2,141
2,856
1,974

1,459
2,261
1,234

683
595
740

52,046
51,266
52,182

15,574 25,311
14,278 26,741
14,450 27,564

1973—Dec...........
1974—Dec...........

23,771
31,733

2 ,2 1 0

2,464

317
1,081

1,893
1,383

21,041
28,453

1,928 9,895
3,478 11,354

1975—Mar...........
Apr...........
May..........
June..........
July...........
Aug...........
Sept...........
Oct............
Nov...........
Dec...........

33,793
35,666
38,198
39,646
39,614
41,624
41,601
44,166
44,471
45,203

2,407
2,588
4,126
2,634
2,787
4,117
3,189
3,989
4,544
3,229

839
1,006
2,468
987
1,134
2,580
1,289
2,295
2,929
1,477

1,568
1,582
1,658
1,647
1,653
1,536
1,900
1,694
1,615
1,752

30,670
32,358
33,214
36,181
35,676
36,555
37,479
39,225
38,973
41,040

3,568
4,320
4,270
5,831
5,015
5,222
5,220
5,604
5,321
5,411

1976—Jan............ 48,694
Feb........... 50,276
Mar.2'....... 251,075

4,488
4,765
3,482

2,614
2,750
1,425

1,874
2,014
2,056

43,104
44,396
46,636

6,296 17,195
6,257 17,556
6,745 18,205

9 ,1 0 2

6 6,868

46,118
45,172
45,403
49,132
48,572
48,063
51,479
50,034
50,972
54,764

34,260
33,079
32,443
34,634
33,431
32,998
34,759
32,806
33,189
35,102

24,874
23,990
23,320
25,761
25,143
24,540
27,008
24,691
25,600
27,669

11,634
12,229
13,181
13,747
14,065
14,117
14,604
15,414
15,134
16,298

2 ,2 0 2

2,232
2,155
2,430
2,319
2,153
2 ,2 0 2

10,057
10,217
10,506
10,178
10,267
10,168
10,277
10,557
10,353
10,175

989
922
983
1,136
1,032
977
1,146
1,087
967

837 10,325
715 9,532
691 9,479

880
918
958

2 ,0 2 2

8,068
11,599

520
815

2,393
2,419
2,531
2,772
2,747
2,891
3,020
3,308
3,434
3,576

13,075
13,390
13,232
13,831
13,849
14,324
14,635
14,899
15,084
15,756

716
720
858
831
1,150
933
933
952
954
933

3,677 15,935
3,908 16,675
4,251 17,434

1,115
957

1,151

1 ,1 0 2

JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A71

19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
To foreigners

To U.S.
Total

Total

5,610
121,866
151,905 11,982
155,204
155,617
156,910
162,342
160,703
165,837
166,098
169,480
171,624
175,934

15,407
14,935
16,861
18,618
17,704
17,183
18,329
19,083
19,786
20,132

Parent
bank

1,642
5,809
8,849
8,703
10,366
12,204
11,542
10,021

10,853
11,211

11,129
12,076

Other

Total

3,968 111,615
6,173 132,990
6,557
6,233
6,494
6,414
6,162
7,162
7,476
7,872
8,657
8,056

133,540
134,594
133,806
137,189
136,808
142,327
141,619
144,223
145,095
149,418

Other
branches
of parent
bank

Other
banks

Non­
Offi­
bank
cial
for­
insti­
tutions eigners

Other

Month-end

18,213 65,389 10,330 17,683
26,941 65,675 20,185 20,189

4,641 ......... 1973—Dec.
6,933

28,214
29,192
26,725
30,412
30,233
30,582
30,314
31,781
32,380
33,911

6,257
6,088
6,243
6,535
6,191 .....................July
6,326
6,149
6,174
6,743
6,385

63,419
62,287
64,700
64,955
65,956
70,161
70,771
70,365
70,415
72,182

22,577
23,236
22,223
21,106
20,371
21,093
19,746
20,629
21,190
22,763

19,330
19,879
20,158
20,715
20,249
20,492
20,789
21,449
21,111

20,562

178,707 22,569 12,689 9,879 150,231
180,611 24,469 14,086 10,383 150,122
185,785 24,412 15,284 9,128 155,538

35,514 72,269 21,707 20,740
34,908 70,770 23,187 21,257
37,516 72,870 22,309 22,844

5,835

80,374 5,027
107,890 11,437

1,477
5,641

3,550
5,795

73,189
92,503

12,554 43,641 7,491 9,502
19,330 43,656 17,444 12,072

2,158 .........1973—Dec
3,951

14,795
14,277
16,256
17,998
17,090
16,538
17,699
18,407
19,089
19,413

8,660
8,517
10,189
12,008
11,335
9,840
10,650
11,007
10,938
11,851

6,135
5,760
6,067
5,990
5,755
6,698
7,048
7,399
8,151
7,563

91,338
92,715
94,452
97,828
99,013
103,987
104,577
106,182
108,645
112,765

19,880
20,683
20,521
23,969
24,112
24,435
24,477
25,824
26,650
28,098

3,368
3,414
3,397
3,560
3,216 .................... July
3,381
3,187
3,365
3,866
3,487

109,501
110,405
114,105
119,385
119,319
123,906
125,463
127,953
131,600
135,665

138,430 21,928 12,517
139,825 23,727 13,840
142,028 23,624 15,015

9,411 113,192
9,887 112,716
8,609 115,446

41,216
40,999
43,863
44,202
45,897
49,418
50,697
49,736
50,299
51,503

19,303
19,909
18,928
17,968
17,393
18,080
16,777
17,476
18,407
19,982

10,939
11,123
11,139
11,689
11,611
12,055
12,626
13,146
13,289
13,183

5,908

1976—Jan . r

3,310 ......... 1976—Jan.r
3,382
2,958

61,732
69,804

2,431
3,978

136
510

2,295
3,468

57,311
63,409

3,944 34,979 8,140 10,248
4,762 32,040 15,258 11,349

1,990 ......... 1973—Dec.
2,418 .........1974—Dec.

69,654
69,248
68,708
70,751
70,382
72,457
72,120
72,742
73,924
74,883

5,095
4,596
4,772
4,668
4,679
5,251
5,112
4,905
5,497
5,646

1,224
1,342
1,337
1,451
1,718
1,904
1,833
1,766
2,028
2 ,1 2 2

3,871
3,254
3,435
3,217
2,961
3,348
3,279
3,139
3,468
3,523

62,363
62,625
61,772
63,857
63,501
65,012
64,962
65,699
66,267
67,261

4,630
5,394
5,325
7,030
6,475
6,260
6,396
6,746
6,470
6,494

10,438
10,753
10,764
11,274
11,077
11,038
10,950
11,711
11,275
11,229

2,196 ......... 1975—Mar.
2,026
2,164
2,226
2,203
2,194
2,046
2,138
2,161
1,976

73,437
72,963
74,668

5,645
5,491
5,185

1,749
1,914
1,549

3,896
3,577
3,637

65,914
65,544
67,433

6,444 33,534 15,053 10,882
6,648 31,444 16,463 10,989
7,179 32,667 15,785 11,802

1,878 ......... 1976—Jan.
1,928 .....................Feb.
2,050

39,689
49 ,6 6 6

2,173
3,744

113
484

2,060
3,261

36,646
44,594

2,519 22,051 5,923
3,256 20,526 13,225

6,152
7,587

870
1,328

49,533
49,177
49,479
51,848
51,826
54,017
54,683
54,478
56,696
57,820

4,805
4,297
4,487
4,369
4,421
4,975
4,889
4,696
5,288
5,415

1,189
1,313
1,314
1,412
1,684
1,873
1,808
1,735
2,009
2,083

3,616
2,984
3,173
2,957
2,737
3,103
3,081
2,961
3,279
3,332

43,546
43,758
43,784
46,312
46,217
47,912
48,814
48,660
50,185
51,466

3,072
3,886
4,220
5,962
5,478
5,288
5,456
5,708
5,478
5,442

14,688
15,158
14,135
13,083
12,915
13,249
12,182
12,500
12,999
14,498

6,658
6,717
6,789
7,228
7,049
7,287
7,531
7,999
8,066
8,176

1,183 ......... 1975—Mar.

56,039
55,848
56,266

5,446
5,311
4,982

1,732
1,901
1,509

3,714
3,410
3,473

49,676
49,606
50,340

5,422 23,369 13,070
5,471 21,911 14,326
6,049 22,082 13,595

7,816
7,899
8,614

917 ......... 1976—Jan.
931 .....................Feb.
944

23,771
31,733

1,573
4,815

307
2,636

1,266
2,180

21,747
26,140

5,508 14,071
7,702 14,050

492
2,377

1,676
2,011

451 ........ 1973__ Dec
778

33,793
35,667
38,198
39,646
39,614
41,624
41,601
44,166
44,471
45,203

7,228
7,420
9,090

5,081
5,083
6,766
8,322
7,407
5,715
6,490
7,056
6,710
7,628

2,147
2,337
2,324
2,544
2,584
3,085
3,439
3,778
4,372
3,519

25,875
27,536
28,309
27,987
28,933
31,913
30,861
32,327
32,239
32,950

8,498
8,756
6,872
8,075
8,401
9,128
8,918
9,725
10,553
10,569

12,614
13,694
16,018
14,482
15,539
17,317
16,834
17,296
15,972
16,726

2,520
2,769
2,977
3,036
2,500
2,860
2,570
2,775
3,230
3,308

2,243
2,318
2,441
2,393
2,492
2,607
2,540
2,577
2,483
2,348

690 ........ 1975—Mar.
711
799
793
690
911
812
961
1,150
1,106

48,694 13,110 8,088
50,276 15,016 9,197
251,075 15,469 10,915

5,022
5,820
4,554

34,475
34,159
34,931

11,230 17,543
10,294 18,017
10,850 18,332

3,416
3,407
2,998

2,287
2,440
2,751

1 ,1 0 0 .................... Feb.

10,866

9,991
8,800
9,928
10,833
11,082
11,146

For notes see p. A-74.



19,128
17,997
18,640
20,039
20,775
22,087
23,645
22,452
23,641
23,349

17,305
17,812
16,726
15,524
15,312
15,617
14,486
14,909
15,180
16,553

IN ALL FOREIGN COUNTRIES
..........Total, all currencies

6 ,0 2 0 .....................Feb.

29,422 51,814 18,906 13,050
28,510 50,434 20,314 13,458
29,851 51,768 19,369 14,457

29,990
28,666
28,957
30,030
30,636
32,097
33,130
32,334
33,340
32,985

Location and currency form

..........Payable in U.S. dollars

IN UNITED KINGDOM

.. . 1973_Dec

1 ,1 2 2

1,208
1,167
1,188
1,129
980
1,123
1,223
940

1,109 ......... 1976—Jan.
676

IN BAHAMAS AND CAYMANS 1

A72

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976

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 of dollars)

(In millions of dollars)
Payable in
Payable in dollars foreign currencies

Assets in custody
End of
period

Deposits

U.S. Treas.
securities1

Earmarked
gold

1972..............
1973..............
1974..............

325
251
418

50,934
52,070
55,600

215,530
217,068
16,838

1975—May. .
June...
July...
A ug...
Sept...
Oct.. ..
N ov...
D ec.. .

310
373
369
342
324
297
346
352

61,539
61,406
60,999
60,120
58,420
60,307
60,512
60,019

16,818
16,803
16,803
16,803
16,795
16,751
16,745
16,745

1976—Ja n ....
Feb....
M ar...
A pr....
May. .

294
412
305
305
303

61,796
62,640
61,271
62,527
63,225

16,669
16,666
16,660
16,657
16,647

End of
period

Total
Deposits

1 Marketable U.S. Treasury bills, certificates of in­
debtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2 The value of earmarked gold increased because of the
changes in par value of the U.S. dollar in May 1972, and
in Oct. 1973.

Short­
Short­
term
term
invest­ Deposits invest­
ments 1
ments 1

1972...................
1973...................
1974...................

2,374
3,164
3,337

1,910
2,588
2,583

55
37
56

340
435
429

68
105
268

911
1,118
1,350

536
765
959

1975—Feb.........
Mar.........
Apr.........
May........
June........
July, . .
Aug.........
Sept.........
Oct..........
Nov.........
Dec.........

3,402
3,306
3,440
3,264
3,214
3,293
3,523
3,659
3,488
3,824
3,675

2,516
2,450
2,474
2,238
2,162
2,191
2,276
2,443
2,484
2,661
2,653

52
67
48
47
193
226
219
246
330
423
284

425
407
373
453
427
475
508
474
425
456
496

409
384
545
526
432
402
520
496
249
284
241

1,088
1,079
1,089
931
997
904
1,052
1,139
1,199
1,289
1,288

1,138
1,129
1,274
1,239
1,127
1,107
1,307
1,248
1,153
1,330
1,090

1976—Jan..........
F eb.*.. ..
Mar.*__

4,075
4,346
4,396

3,016
3,233
3,341

320
341
393

464
447
434

274
325
228

1,469
1,480
1,683

1,263
1,333
1,322

N o t e . — Data represent the liquid assets abroad of large nonbanking concerns in
the United States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the United States and are included in the figures shown in
Table 22.

deposits and U.S. Treasury securities
held for international and regional organizations. Ear­
marked gold is gold held for foreign and international
accounts and is not included in the gold stock of the
United States.

22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Amount outstanding; in millions of dollars)
Liabilities

Total

Payable
in
dollars

Claims

Payable
in
foreign
currencies

Total

Payable
in
dollars

Payable in foreign
currencies
Deposits with
banks abroad
in reporter’s
name

Other

1972—June.....................
Sept......................

2,925
2,933
J 3,119
I 3,417

2,452
2,435
2,635
2,948

472
498
484
469

5,326
5,487
5,721
6,302

4,685
4,833
5,074
5,643

374
426
410
393

268
228
237
267

1973—Mar......................
June.....................
Sept......................
Dec.......................

3,320
3,319
3,579
4,006

2,848
2,796
2,931
3,290

472
523
648
716

7,017
7,285
7,625
8,482

6,147
6,444
6,698
7,569

456
493
528
493

414
349
399
421

1974—Mar......................
June.....................
Sept......................
Dec.......................

4,414
5,139
5,605
5,828

3,590
4,184
4,656
4,905

823
955
949
922

10,475
11,046
10,698
11,268

9,541
10,122
9,730
10,201

407
429
430
473

526
496
537
594

1975—Mar......................
June.....................
Sept......................
Dec.*...................

5,804
5,802
5,876
5,776

4,940
4,972
5,028
5,169

864
830
848
607

10,910
10,866
11,692
12,079

9,769
9,574
10,333
10,899

453
479
525
555

688
813
834
626

1 Data on the 2 lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the




Canada

i 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.

N o t e . —Excludes

End of period

United
King­
dom

preceding date; figures on the second line are comparable with those shown for the following date,

JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A73

23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(End of period. Amounts outstanding; in millions of dollars)
Liabilities to foreigners
Area and country

1974

Claims on foreigners
1974

1975

Dec.

Mar.

Europe:
Austria....................................................
Belgium-Luxembourg...........................
Denmark................................................
Finland...................................................
France....................................................
Germany................................................
Greece....................................................
Italy........................................................
Netherlands............................................
Norway..................................................
Portugal..................................................
Spain......................................................
Sweden...................................................
Switzerland............................................
Turkey....................................................
United Kingdom...................................
Yugoslavia.............................................
Other Western Europe..........................
Eastern Europe......................................

1,258
40
5
70

1,161
52
5
54

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

3,018

Canada.......................................................

20

519
24
16
202

313
39
125
119
9
19
56
38
138

26
480
23
16
151
352
25
109
122

9
13
54
32
155

June

Dec.*

Sept.

22

340
14
12

137
293
27
110

143
8

18
336
8

14
150
276
21

156
154
13
13
74
47
167

14
294
9
14
148
149
19
171
113

1975

Dec.

Mar.

26
128
42

June

15
137
35
77
328
276
59
309
157
35
42
359

Dec.*

Sept.

13
132

15
131
24
114
311
319
56
380
139
48
39
315

22
21

31

87
287
346
69
300
135
41
32
324
74
113
28
1,557
32
16
154

31
1,785
24
19
170

16
134
39
91
299
363
33
381
165
40
44
408
62
241
28
1,892
36
14
219

20

4

120

430
339
65
397
148
36
81
369
89
136
26
1,853

22

142

33
1,657
33
23
114

2,851

13
59
30
168
14
1,033
45
4
49
2,523

2,496

2,241

4,469

3,840

3,763

4,241

4,504

306

258

281

296

286

1,618

1,855

1,948

2,101

2,013

36
291
118

31
307

28

67
594
463
106
51

73
615
378
69
51

63
631
349
57
47

58
660
399
38
47

49
83
26
81

122

31
186
96
14
14
*
85
24
23
3
97
71
35
118

52

23
11
*
72
18
18
3
39
65
56
114

30
277
127
15
11
*
74
27
16
3
45
67
60
125

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

828

878

876

827

Asia:
China, People’s Republic of (China
Mainland)..........................................
China, Rep. of (Taiwan).......................
Hong Kong............................................
India.......................................................
Indonesia................................................
Israel......................................................
Japan......................................................
Korea......................................................
Philippines..............................................
Thailand.................................................
Other Asia..............................................

17
93
19
7
60
50
348
75
25

8
102

6
100

2
101

Latin America:
Argentina................................................
Bahamas................................................
Brazil......................................................
Chile.......................................................
Colombia...............................................
Cuba.......................................................
Mexico....................................................
Panama..................................................
Peru........................................................
Uruguay.................................................
Venezuela...............................................
Other L. A. republics.............................
Neth. Antilles and Surinam.................
Other Latin America.............................

8

22

14
*
63
28
14
2

12

121

22

924
60
5
38

210

116
13
14
*
84
19
19
2

56
69
76

81

24
129
25
913
76
6

1

1

1

299
103
48
5
152
163

147

46
15
180
193
16
196

305
128
50
5
166
179
13
159

192

295

796

2,305

2,268

2,151

2,184

2,299

6

17
139
63
37
92
44
1,239

19

32
125
85
39
147
60
1,250
178
91
25
468

45
152
85
48
137
63
1,265
207
93

65
164

95
24
385

83
32
117
46
1,326
165
83
30
396

534

557

2,650

2,682

104
45
279
63
15

536

841

908

10

21

6

21

8

385
41
47

322

87
62
273
43
17

10

29

686

1

63
62
327
47
19
9
642

30

100
220

295
132
44
5
190
193

97
18
7
137
29
296
69
14
18
1,027

19

66
86

20

201

110

122

12

21

1

333
92
41
4
165
154
12

111

39
169
53
1,137
265
99
22

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

1,239

1,308

1,488

1,575

1,717

2,337

2,419

2,501

Africa:
Egypt......................................................
South Africa..........................................
Zaire.......................................................
Other Africa..........................................

3
43
18
129

5
54
17
142

34
65
9
215

34
79
9

37
99

15
101

220

249

24
234

24
104
18
242

15
104
17
227

273

92
28
298

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

193

217

323

341

391

374

387

364

389

440

Other countries:
Australia................................................
All other.............................................. .

56
30

60
31

37
18

52

55
14

116
49

97
45

99
39

79
48

101

21

T otal...............................................

86

91

55

73

70

165

141

138

127

140

11,692

12,079

6

International and regional........................

158

201

257

267

276

*

1

1

Grand total.....................................

5,828

5,804

5,802

5,876

5,776

11,268

10,910

1 0 ,866

N o t e . — Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.




15
79

22

22

39

1

Data exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.

INTL. CAPITAL TRANSACTIONS OF THE U.S. o JUNE 1976

A74

24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions o f dollars)
Claims

Country or area

Total
liabilities

End of period

Total

United
Kingdom

Other
Europe

Canada

Brazil

Mexico

Other
Latin
America

Japan

Other
Asia

Africa

All
other

1971—D ec..

3,138

3,068

128

704

717

174

60

653

136

325

86

84

1972—June.
Sept..
Dec.1

3,300
3,448
3,540
3,603

3,206
3,187
3,312
3,274

108
128
163
191

712
695
715
745

748
757
775
749

188
177
184
187

61
63
60
64

671
662
658
703

161
132
156
133

377
390
406
378

86
89
87
86

93
96
109
38

1973—Mar..
June.
Sept..
Dec..

3,781
3,798
4,000
3,886

3,411
3,446
3,620
3,678

156
180
216
290

802
805
822
761

764
756
788
792

165
146
147
145

63
65
73
79

796
825
832
829

123
124
134
125

393
390
449
488

105
108
108
115

45
48
51
53

1974—M ar..
June.
Sept..
Dec..

3,836
3,536
3,371
3,768

3.808
3.809
3,949
4,159

369
363
370
364

737
699
704
642

824
844
881
918

194
184
181
187

81
138
145
143

809
756
796
1,044

123
123
119
112

488
515
571
569

122
126
122
127

61
61
59
54

1975—Mar..
June.
Sept..
Dec.p

4,044
4,155
4,104
4,128

4,139
4,086
4,228
4,347

340
299
366
395

654
634
620
581

962
970
993
1,054

182
182
177
170

160
154
222
210

1,006
979
926
1,017

102
98
95
90

540
556
608
603

139
146
154
167

54
68
67
61

1 Data on the 2 lines shown for this data differ because of changes
in reporting coverage. Figures on the first line are comparable with those

shown for the preceding date; figures on the second line are comparable
with those shown for the following date.

25. OPEN MARKET RATES
(Per cent per annum)

Canada
Month

United Kingdom

Treasury Day-tobills,
day
3 months1 money2

Prime
Treasury
bank
bills,
bills,
3 months
3 months

France

Day-today
money

Clearing
banks*
deposit
rates

Germany,
Fed. Rep. of

Day-to- Treasury
bills,
day
money3
60-90
days4

Netherlands

Day-to- Treasury
day
bills,
money 5 3 months

Switzer­
land

Day-today
money

Private
discount
rate

.

5.43
7.63
7.36

5.27
7.69
7.34

10.45
12.99
10.57

9.40
11.36
10.16

8.27
9.85
10.13

7.96
9.48
7.23

8.92
12.87
7.89

6.40
6.06
3.51

10.18
8.76
4.23

4.07
6.90
4.41

4.94
8.21
3.65

5.09
6.67
6.25

1975—May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec..

6.89
6.96
7.22
7.72
8.37
8.28
8.44
8.59

6.88
6.88
7.17
7.42
7.74
7.92
8.29
8.66

10.00
9.72
9.86
10.59
10.43
11.38
11.21
10.88

9.47
9.43
9.71
10.43
10.36
11.42
11.10
10.82

7.81
7.00
7.34
8.59
9.40
9.88
11.34
9.61

6.25
6.25
6.25
6.43
6.50
6.93
7.00
7.00

7.56
7.31
7.25
7.16
6.91
6.53
6.74
6.42

3.38
3.38
3.38
3.38
3.38
3.13
3.13
3.13

5.32
4.91
3.98
1.93
4.25
3.27
3.36
3.84

3.64
2.76
2.98
2.89
2.60
4.22
4.67
4.88

1.98
1.37
1 .99
1.51
.94
4.35
4.19
4.34

6.50
6.50
6.50
6.00
5.50
5.50
5.50
5.50

1976—Jan..
Feb.
Mar.
Apr.
May

8.59
8.70
9.04
8.97
8.93

8.75
8.74
9.05
8.65
8.96

9.83
8.86
8.66
9.10

9.87
8.81
8.46
8.97
10.45

9.08
8.42
6.25
7.69

5.75
6.50

6.38
7.27
7.63
7.56
7.53

3.13
3.13
3.13
3.13
3.13

3.58
3.08
3.62
2.76
3.68

4.52
2.86
2.50
2.96

3.76
3.05
2.12
2.50

5.00
5.00
4.78
4.50
4.50

197 3
197 4
197 5

1 Based on average yield of weekly tenders during month.
2 Based on weekly averages of daily closing rates.
3 Rate shown is on private securities.
4 Rate in effect at end of month.

5 Monthly averages based on daily quotations.
N o t e . —For

description and back data, see “International Finance,*
Section 15 of Supplement to Banking and Monetary Statistics , 1962.

NOTES TO TABLES 19a AND 19b ON PAGES A-70 AND A-71, RESPECTIVELY:
1 Cayman Islands included beginning Aug. 1973.
2 Total assets and total liabilities payable in U.S. dollars amounted to
$47,125 million and $47,535 million, respectively, on Mar. 31, 1976.
N o t e . — Components




may not add to totals due to rounding.

For a given month, total assets may not equal total liabilities because
some branches do not adjust the parent’s equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.

JUNE 1976 □ CENTRAL BANK AND EXCHANGE RATES

A75

26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Rate as o f May 31, 1976

Rate as o f May 31, 1976
Country

Per
cent

Month
effective

Country

Per
cent

Month
effective

Argentina......................
Austria..........................
Belgium.........................
Brazil.............................

18.0
5.0
7.0
28.0

Feb.
Jan.
Mar.
May

1972
1976
1976
1976

Italy...................
Japan.................
Mexico...............
Netherlands. . . .

12.0
6.5
4.5
4.0

Mar.
Oct.
June
Feb.

1976
1975
1942
1976

Canada..........................
Denmark.......................
France...........................
Germany, Fed. Rep. of

9.5
8.5
8.0
3.5

Mar.
Mar.
Sept.
Sept.

1976
1976
1975
1975

Norway..............
Sweden ..............
Switzerland........
United Kingdom
Venezuela..........

5.0
5.5
2.5
11 .5
5.0

Oct.
Jan.
Jan.
May
Oct.

1975
1976
1976
1976
1970

N o t e . —Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
govt, securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts
the largest proportion of its credit operations. Other rates for some of
these countries follow:
Argentina—3 and 5 per cent for certain rural and industrial paper, de­
pending on type of transaction;
Brazil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;

Japan—Penalty rates (exceeding the basic rate shown) for borrowings

from the central bank in excess of an individual bank’s quota;
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%
per cent for advances against government bonds, and 5% per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.

27. FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Australia
(dollar)

Austria
(schilling)

Belgium
(franc)

1972.....................
1973.....................
1974....................
1975....................

119.23
141.94
143.89
130.77

4.3228
5.1649
5.3564
5.7467

2.2716
2.5761
2.5713
2.7253

100.937
99.977
102.257
98.297

14.384
16.603
16.442
17.437

19.825
22.536
20.805
23.354

31.364
37.758
38.723
40.729

13.246
12.071
12.460
11.926

250.08
245.10
234.03
222.16

.17132
.17192
.15372
.15328

.32995
.36915
.34302
.33705

1975—May.........
June.........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec..........

134.04
133.55
130.95
128.15
128.87
126.26
126.26
125.38

6.0033
6.0338
5.7223
5.4991
5.4029
5.4586
5.4535
5.3986

2.8631
2.8603
2.7123
2.6129
2.5485
2.5662
2.5618
2.5311

97.222
97.426
97.004
96.581
97.437
97.557
98.631
98.627

18.299
18.392
17.477
16.783
16.445
16.601
16.564
16.253

24.655
24.971
23.659
22.848
22.367
22.694
22.684
22.428

42.546
42.726
40.469
38.857
38.191
38.737
38.619
38.144

12.391
12.210
11.777
11.379
11.281
11.244
11.238
11.134

232.05
228.03
218.45
211.43
208.34
205.68
204.84
202.21

.15937
.15982
.15387
.14963
.14740
.14745
.14721
.14645

.34314
.34077
.33741
.33560
.33345
.33076
.33053
.32715

1976—Jan...........
Feb...........
Mar..........
Apr..........

125.65
125.85
124.79
123.72
123.37

5.4300
5.4628
5.4383
5.4964
5.4535

2.5443
2.5554
2.5480
2.5667
2.5517

99.359
100.652
101.431
101.668
102.02

16.231
16.278
16.273
16.553
16.487

22.339
22.351
21.657
21.411
21.272

38.425
39.034
39.064
39.402
39.035

11.178
11.186
11.157
11.123
11.080

202.86
202.62
194.28
184.63
180.79

.14245
.13021
.12113
.11371
.11676

.32826
.33157
.33276
.33433
.33444

Nether­
lands
(guilder)

New
Zealand
(dollar)

Norway
(krone)

Portugal
(escudo)

Switzer­
land
(franc)

United
Kingdom
(pound)

Period

May..........

Period

Malaysia
(dollar)

Mexico
(peso)

Canada
(dollar)

Denmark
(krone)

France
(franc)

Germany
(Deutsche
mark)

South
Africa
(rand)

India
(rupee)

Spain
(peseta)

Ireland
(pound)

Sweden
(krona)

Italy
(lira)

Japan
(yen)

1972.....................
1973.....................
1974.....................
1975.....................

35.610
40.988
41.682
41.753

8.0000
8.0000
8.0000
8.0000

31.153
35.977
37.267
39.632

119.35
136.04
140.02
121.16

15.180
17.406
18.119
19.180

3.7023
4.1080
3.9506
3.9286

129.43
143.88
146.98
136.47

1.5559
1.7178
1.7337
1.7424

21.022
22.970
22.563
24.141

26.193
31.700
33.688
38.743

250.08
245.10
234.03
222.16

1975—May.........
June.........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec..........

44.278
43.856
41.442
39.779
38.219
38.931
38.929
38.670

8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000

41.581
41.502
39.154
37.887
37.229
37.658
37.638
37.234

131.66
130.86
127.73
111.79
105.50
104.74
104.75
103.77

20.198
20.393
19.241
18.304
17.834
18.089
18.116
17.988

4.0933
4.1124
3.9227
3.7700
3.7048
3.7359
3.7318
3.6836

146.69
146.31
139.75
139.72
131.40
114.84
114.69
114.75

1.7871
1.7922
1.7446
1.7140
1.6914
1.6883
1.6869
1.6765

25.422
25.532
24.213
23.174
22.501
22.769
22.788
22.685

39.851
40.086
38.272
37.332
36.905
37.555
37.683
37.970

232.05
228.03
218.45
211.43
208.35
205.68
204.84
202.21

1976—Jan...........
Feb...........
Mar..........
Apr..........
May.........

38.696
38.998
39.047
39.032
39.079

8.0000
8.0000
8.0000
8.0000
8.0000

37.429
37.529
37.149
37.215
36.811

104.06
104.25
102.42
100.19
99.33

17.992
18.098
18.022
18.201
18.184

3.6562
3.6394
3.4987
3.3759
3.3195

114.80
114.79
114.83
114.84
114.85

1.6751
1.5523
1.4947
1.4864
1.4788

22.831
22.861
22.702
22.709
22.653

38.418
38.912
38.980
39.531
40.205

202.86
202.62
194.28
184.63
180.79

N ote. —Averages of certified noon buying rates in New York for cable
transfers. For description of rates and back data, see “International Fi­
nance,” Section 15 of Supplement to Banking and Monetary Statistics , 1962.




A 76

Board of Governors of the Federal Reserve System
S te p h e n S. G a r d n e r , Vice Chairman

A r t h u r F. B u r n s , Chairman

P h ilip E. C o l d w e l l

H e n r y C. W a l l i c h
J. C harles P artee

P h ilip C. J a c k so n , Jr.

OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
J o h n M . D e n k l e r , Staff D irecto r
R o b e r t J . L a w r e n c e , D epu ty Staff

D irecto r
o o d , A ssista n t D irector
and Program D ire cto r fo r
C ontingency Planning
W i l l i a m W . L a y t o n , D irecto r of Equal
E m ploym ent O pportunity
B r e n t o n C. L e a v i t t , Program D irecto r for
Banking Structure

G o r d o n B . G r im w

OFFICE OF BOARD MEMBERS
T h o m a s J. O ’C o n n e l l ,

Stephen H . A

J o s e p h R. C o y n e , A ssistan t to the B oard
K e n n e t h A. G u e n t h e r , A ssistan t to the B oard
J a y P a u l B r e n n e m a n , Special A ssistan t to the

B oard
F r a n k O ’B r i e n , J r . ,

Special A ssistan t to the

B oard




x il r o d ,

Staff D irecto r

A r t h u r L. B r o i d a , D eputy Staff D irector
M u r r a y A l t m a n n , A ssistan t to the B oard
P e t e r M . K e i r , A ssistan t to the B oard
S t a n l e y J. S i g e l , A ssistan t to the B oard
N o r m a n d R. V. B e r n a r d , Special A ssistan t

to

the B oard

D o n a l d J. W

in n

,

Special A ssista n t to the

B oard

DIVISION OF RESEARCH AND STATISTICS

J o h n D. H a w k e , J r . ,
B a l d w in B . T u t t l e ,

W i l l i a m H . W a l l a c e , D irecto r
A l b e r t R . H a m i l t o n , A sso cia te D irector
C l y d e H . F a r n s w o r t h , J r . , A ssista n t D irector
P. D. R i n g , A ssistan t D irecto r

OFFICE OF STAFF
DIRECTOR FOR MONETARY POLICY

Counsel to the

Chairman

LEGAL DIVISION

DIVISION OF FEDERAL RESERVE
BANK EXAMINATIONS AND BUDGETS

D a v id M. L i l l y

G eneral Counsel
D eputy G eneral

Counsel
R obert

E.

M

a n n io n

,

A ssistan t G eneral

Counsel
A l l e n L. R a i k e n , A ssista n t G eneral Counsel
G a r y M . W e l s h , A ssista n 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

L y l e E . G r a m l e y , D irecto r
J a m e s L . K i c h l i n e , A sso cia te D irector
J o s e p h S . Z e i s e l , A sso cia te D irecto r
E d w a r d C . E t t i n , A d viser
J o h n H . K a l c h b r e n n e r , A d viser
J a m e s B . E c k e r t , A sso cia te A d v ise r
J o h n J. M i n g o , A ssociate A d viser
E l e a n o r J. S t o c k w e l l , A sso cia te A d viser
H e l m u t F . W e n d e l , A sso cia te A d viser
J a m e s R . W e t z e l , A sso cia te A d viser
J a r e d J. E n z l e r , A ssista n t A d viser
R o b e r t M . F i s h e r , A ssistan t A d v ise r
J. C o r t l a n d G . P e r e t , A ssista n t A d viser
S t e p h e n P . T a y l o r , A ssista n t A d viser
L e v o n H . G a r a b e d i a n , A ssista n t D irector

DIVISION OF
FEDERAL RESERVE BANK OPERATIONS

OFFICE OF
SAVER AND CONSUMER AFFAIRS

D irecto r
W a l t e r A . A l t h a u s e n , A ssistan t D irector
B r i a n M . C a r e y , A ssista n t D irector
H a r r y A . G u i n t e r , A ssista n t D irector

F r e d e r ic S o l o m o n ,

Ja m e s R . K u d l i n s k i ,

A ssista n t to the
B o a rd and D irector
J a n e t O. H a r t , D eputy D irecto r
Je r a u l d C . K l u c k m a n , A ssista n t D irecto r
R o b e r t S . P l o t k i n , A ssistan t D irector

DIVISION OF DATA PROCESSING
C h a r l e s L. H a m p t o n , D irector
B r u c e M . B e a r d s l e y , A ssociate D irector
G l e n n L. C u m m i n s , A ssista n t D irector
R o b e r t J . Z e m e l , A ssista n t D irector

OFFICE OF THE SECRETARY

DIVISION OF INTERNATIONAL FINANCE
t R a l p h C . B r y a n t , D irector
J o h n E . R e y n o l d s , A ctin g D irector
R o b e r t F. G e m m i l l , A d viser
R e e d J. I r v i n e , A d viser
I H e l e n B . J u n z , A d viser
S a m u e l P i z e r , A d v ise r
G e o r g e B . H e n r y , A ssociate A d viser
C h a r l e s J. S i e g m a n , A sso cia te A dviser
E d w i n M . T r u m a n , A ssociate A dviser

T h e o d o r e E. A l l i s o n , S ecretary
* Jo s e p h P . G a r b a r i n i , A ssista n t Secretary
G r i f f i t h L . G a r w o o d , A ssista n t S ecretary
t O n leave of absence.

DIVISION OF PERSONNEL
K e i t h D . E n g s t r o m , D irecto r
C h a r l e s W . W o o d , A ssistan t

DIVISION OF BANKING
SUPERVISION AND REGULATION
D irector
D irector
A sso cia te D irector
Jo h n E . R y a n , A sso cia te D irector
W i l l i a m W . W i l e s , A sso cia te D irecto r
P e t e r E . B a r n a , A ssista n t D irector
F r e d e r i c k R . D a h l , A ssista n t D irector
Ja c k M . E g e r t s o n , A ssistan t D irector
Jo h n N. L y o n , A ssistan t D irector
Jo h n T . M c C l i n t o c k , A ssista n t D irector
T h o m a s E . M e a d , A ssista n t D irector
T h o m a s A. S i d m a n , A ssistan t D irecto r

B r e n t o n C . L e a v it t ,
R alph H . G e ld e r ,

OFFICE OF THE CONTROLLER
J o h n K a k a l e c , C on troller
T y l e r E . W i l l i a m s , J r . , A ssistan t

Controller

DIVISION OF ADMINISTRATIVE SERVICES
W a l t e r W . K r e i m a n n , D irector
D o n a l d E . A n d e r s o n , A ssistan t D irector
J o h n D . S m i t h , A ssista n t D irector

A ll




*O n loan from the Federal Reserve Bank of St. Louis.

A78

Federal Open Market Committee
P a u l A . V o l c k e r , Vice Chairman

A r t h u r F. B u r n s , Chairman
Jo h n J. B alles
R obert P. B lack
P hilip E. C o ld w ell

S t eph e n S. G a rd ner
P h ilip C. J a c k so n , Jr .
M onroe K imbrel
D a v id M . L illy

E. G r a m l e y , Econom ist
(Dom estic Business)
H a r r y B r a n d t , A sso cia te Econom ist
R i c h a r d G . D a v i s , A sso cia te Econom ist
W i l l i a m J. H o c t e r , A ssociate Econom ist
M i c h a e l W . K e r a n , A sso cia te Econom ist
J a m e s L . K i c h l i n e , A ssociate Econom ist
J a m e s P a r t h e m o s , A sso cia te Econom ist
J o h n E. R e y n o l d s , A ssociate Econom ist
J o s e p h S . Z e i s e l , A sso cia te Econom ist

Secretary
D eputy Secretary
N o r m a n d R . V. B e r n a r d , A ssistan t
Secretary
T h o m a s J. O ’C o n n e l l , G eneral Counsel
E d w a r d G . G u y , D eputy G eneral Counsel
B a l d w i n B . T u t t l e , A ssistan t G eneral
Counsel
S t e p h e n H . A x i l r o d , Econom ist
(Dom estic Finance)
* R a l p h C . B r y a n t , Econom ist
(International Finance)
A r t h u r L . B r o id a ,

M

urray

A

J. C h arles P artee
H e n r y C. W allich
W illis J. W in n

Lyle

ltm ann,

M anager , System Open M arket A ccount
D eputy M anager fo r D om estic O perations
E . P a r d e e , D eputy M anager fo r Foreign O perations

A l a n R . H o lm es,

P e t e r D . S t e r n l ig h t ,
S cott
*On leave of absence.

Federal Advisory Council
E llm ore C . P a t t e r so n ,
W

il l ia m

R ic h a r d D . H i l l ,

F.

M

f e d e r a l r e s e r v e d is t r ic t ,

E d w in S . Jo n e s ,

f ir s t f e d e r a l

F.

B o d in e ,

e ir , f o u r t h f e d e r a l

Eugene H. A

RESERVE DISTRICT
Jo h n H . L u m p k i n ,

B en

f if t h f e d e r a l

federal

F.

Love,

eleventh

federal

RESERVE DISTRICT

e r r ig a n , s ix t h

G il b e r t

FEDERAL RESERVE DISTRICT




d a m s, ten th

RESERVE DISTRICT

RESERVE DISTRICT
Law rence A . M

federal

D o n a l d R . G r a n g a a r d , n in t h
FEDERAL RESERVE DISTRICT

t h ir d f e d e r a l

r e s e r v e d is t r i c t

M . B rock W

e ig h t h

RESERVE DISTRICT

r e s e r v e d is t r i c t

Ja m e s

P resident
Vice President

s e c o n d f e d e r a l r e se r v e d is t r ic t ,

u r r a y , seventh

F.

B radley,

tw elfth

FEDERAL RESERVE DISTRICT
H erbert
W

il l ia m

V.

Secretary
A ssociate Secretary

Prochnow ,

J. K o r s v i k ,

A79

Federal Reserve Banks, Branches, and Offices
federal reserve b a n k ,

branch, or facility

Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON* ................

02106

Louis W. Cabot
Robert M. Solow

Frank E. Morris
James A. McIntosh

NEW YORK*

10045

Frank R. Milliken
Robert H. Knight
Rupert Warren

Paul A. Volcker
Richard A. Debs

Buffalo .................

14240

Ronald B. Gray

PHILADELPHIA

19105

John R. Coleman
John W. Eckman

David P. Eastburn
Mark H. Willes

CLEVELAND*

44101

Horace A. Shepard
Robert E. Kirby
Lawrence H. Rogers, II
G. Jackson Tankersley

Willis J. Winn
Walter H. MacDonald

E. Angus Powell
E. Craig Wall, Sr.
James G. Harlow
Charles W. DeBell

Robert P. Black
George C. Rankin

Cincinnati ............
Pittsburgh ............

45201
15230

RICHMOND* ............ 23261
Baltimore ................. 21203
Charlotte ................. 28230

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishbume

Culpeper Communications
Center ................. 22701

ATLANTA ..............

30303

Birmingham .........
Jacksonville .........
Miami ...................
Nashville ..............
New Orleans ........

35202
32203
33152
37203
70161

CHICAGO* .............. 60690
Detroit ...................

48231

ST. LOUIS ............... 63166
Little Rock ...........
Louisville ............
Memphis ..............
MINNEAPOLIS

72203
40201
38101
55480

Helena .................... 59601
KANSAS CITY

64198

Denver .................. 80217
Oklahoma City ...... 73125
Omaha .................. 68102
DALLAS .................. 75222
El Paso .................. 79999
Houston ................. 77001
San Antonio ........... 78295
SAN FRANCISCO ... .94120
Los Angeles ...........
Portland .................
Salt Lake City ......
Seattle ....................

90051
97208
84110
98124

Vice President
in charge of branch

Albert D. Tinkelenberg
H. G. Pattillo
Clifford M. Kirtland, Jr.
Harold B. Blach, Jr.
Egbert R. Beall
Castle W. Jordan
James W. Long
Edwin J. Caplan

Monroe Kimbrel
Kyle K. Fossum

Peter B. Clark
Robert H. Strotz
Jordan B. Tatter

Robert P. Mayo
Daniel M. Doyle

Edward J. Schnuck
William B. Walton
Ronald W. Bailey
William H. Stroube
Robert E. Healy

Lawrence K. Roos
Eugene A. Leonard

James P. McFarland
Stephen F. Keating
James C. Garlington

Bruce K. MacLaury
Clement A. Van Nice

Robert T. Person
Harold W. Andersen
Maurice B. Mitchell
James G. Harlow, Jr.
Durward B. Varner

Roger Guffey
John T. Boysen

John Lawrence
Charles T. Beaird
J. Luther Davis
Thomas J. Barlow
Margaret Scarbrough Wilson

Ernest T. Baughman
T. W. Plant

0 . Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Edward C. Rainey
W. M. Davis
Jeffrey J. Wells
George C. Guynn

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

John D. Johnson

J. David Hamilton
William G. Evans
Robert D. Hamilton

Fredric W. Reed
James L. Cauthen
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
James J. Curran

♦Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.



A 80

Federal Reserve Board Publications
A vailable from Publications Services, D ivision of A d ­
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request and be made p a ya b le to the order of the B o a rd
of G overnors of the Federal R eserve System in a form
collectible at p a r in U .S. currency. (Stam ps and
coupons are not a c cep ted .)

T he

24 pp. $.35. Sec. 15. International Finance. 1962.
92 pp. $.65. Sec. 16 (New). Consumer Credit.
1965. 103 pp. $.65.
T h e F e d e r a l F u n d s M a r k e t . 1959. I l l pp. $1.00
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T r a d in g in F e d e r a l F u n d s . 1965. 116 pp. $1.00
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I n d u s t r ia l P r o d u c t io n — 1971 E d i t i o n . 1972. 383
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F ed er a l R eserv e S y stem — P u rpo ses a n d
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Sec. 6. Bank Income. 1966. 29 p p . $.35. Sec.
9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec.
10. Member Bank Reserves and Related Items.
1962. 64 p p . $.50. Sec. 11. Currency. 1963. 11
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Markets. 1966. 182 p p . $.65. Sec. 14. Gold. 1962.




T h e P erform ance

of

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1967. 29 pp. $.25 each; 10 or more to one address,
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B a n k C r e d it -C a r d a n d C h e c k -C r e d it P l a n s . 1968.
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$.85 each.
Survey

of

F i n a n c ia l

C h a r a c t e r is t ic s

of

Con­

1966. 166 pp. $1.00 each; 10 or more
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S u r v e y o f C h a n g e s in F a m il y F in a n c e s . 1968. 321
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su m er s.

R e p o r t o f t h e J o in t T r e a s u r y -F e d e r a l R e s e r v e
S t u d y o f t h e U .S . G o v e r n m e n t S e c u r it ie s
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R . F ry . M a y 1 9 7 6 . 2 2 pp.
P r in t e d

in

Full

in t h e

B u l l e t in

Staff Econom ic Studies shown in list below.
R E P R IN T S

(Except fo r Staff P apers, Staff E conom ic Studies, and
som e leading a rticles, m ost o f the articles reprinted do
not exceed 12 p a g e s.)
S e a s o n a l F a c t o r s A f f e c t in g B a n k R e s e r v e s . 2 /5 8 .
M e a s u r e s o f M e m b e r B a n k R e s e r v e s . 7 /6 3 .
R e s e a r c h o n B a n k in g S t r u c t u r e a n d P e r f o r m ­
a n c e , Staff Econom ic Study b y T y n a n S m ith .
4 /6 6 .
A R e v is e d I n d e x o f M a n u f a c t u r in g C a p a c it y ,
Staff Economic Study b y Frank d e L e eu w w ith
Frank E . H o p k in s and M ich ael D . Sherm an. 1 1 /6 6 .
U .S . I n t e r n a t io n a l T r a n s a c t io n s : T r e n d s in
1 9 6 0 - 6 7 . 4 /6 8 .
M e a s u r e s o f S e c u r it y C r e d i t . 1 2 /7 0 .
R e v is e d M e a s u r e s o f M a n u f a c t u r in g C a p a c it y
U t i l i z a t i o n . 1 0 /7 1 .




A 81

R e v is io n o f B a n k C r e d it S e r ie s . 1 2 /7 1 .
A ss e t s a n d L ia b il it ie s o f F o r e ig n B r a n c h e s o f
U .S . B a n k s . 2 /7 2 .
B a n k D e b it s , D e p o s it s , a n d D e p o s it T u r n o v e r —
R e v is e d S e r ie s . 7 /7 2 .
Y ie l d s o n N e w l y I s s u e d C o r p o r a t e B o n d s . 9 /7 2 .
R e c e n t A c t iv it ie s o f F o r e ig n B r a n c h e s o f U .S .
B a n k s . 1 0 /7 2 .
R e v is io n o f C o n s u m e r C r e d it S t a t is t ic s . 1 0 /7 2 .
O n e -B a n k H o l d in g C o m p a n ie s B e f o r e t h e 1 9 7 0
A m e n d m e n t s . 1 2 /7 2 .
Y ie l d s o n R e c e n t l y O f f e r e d C o r p o r a t e B o n d s .
5 /7 3 .
C a p a c it y U t i l iz a t io n in M a jo r M a t e r ia l s I n d u s ­
t r ie s . 8 /7 3 .
C r e d it -C a r d a n d C h e c k -C r e d it P l a n s a t C o m m e r ­
c ia l B a n k s . 9 /7 3 .
R a t e s o n C o n s u m e r I n s t a l m e n t L o a n s . 9 /7 3 .
N e w S e r ie s f o r L a r g e M a n u f a c t u r in g C o r p o r a ­
t i o n s . 1 0 /7 3 .
U .S . E n e r g y S u p p l ie s a n d U s e s , Staff Economic
Study b y C layton G eh m an. 1 2 /7 3 .
C a p a c it y U t i l iz a t io n f o r M a jo r M a t e r i a l s : R e ­
v is e d M e a s u r e s . 4 /7 4 .
N u m e r ic a l S p e c if ic a t io n s o f F i n a n c ia l V a r ia b l e s
a n d T h e ir R o l e in M o n e t a r y P o l i c y . 5 /7 4 .
I n f l a t io n a n d S t a g n a t i o n in M a jo r F o r e ig n I n ­
d u s t r ia l C o u n t r i e s . 1 0 /7 4 .
T h e S t r u c t u r e o f M a r g in C r e d i t . 4 /7 5 .
N e w S t a t is t ic a l S e r ie s o n L o a n C o m m it m e n t s a t
S e l e c t e d L a r g e C o m m e r c ia l B a n k s . 4 /7 5 .
R e c e n t T r e n d s in F e d e r a l B u d g e t P o l i c y . 7 /7 5 .
B a n k in g a n d M o n e t a r y S t a t is t ic s , 19 7 4 . S elected
series o f ban k in g and m onetary statistics for 1974
o n ly . 2 /7 5 , 3 /7 5 , 4 /7 5 and 7 /7 5 .
R e c e n t D e v e l o p m e n t s in I n t e r n a t io n a l F i n a n c ia l
M a r k e t s . 1 0 /7 5 .
MINNIE:
A
Small
V ersion
of
the
M I T -P E N N -S S R C E c o n o m e t r ic M o d e l , Staff
Economic Study b y D o u g la s B atten b erg, Jared J.
E n zler and Arthur M . H aven n er. 1 1 /7 5 .
A n A s s e s s m e n t o f B a n k H o l d in g C o m p a n ie s , Staff
Economic Study b y R obert J . L a w ren ce and
S am u el H . T a lley . 1 /7 6 .
I n d u s t r ia l E l e c t r ic P o w e r U s e . 1 /7 6 .
R e v is io n o f M o n e y S t o c k M e a s u r e s . 2 /7 6 .
S u r v e y o f F in a n c e C o m p a n ie s , 19 7 5 . 3 /7 6 .
C h a n g in g P a t t e r n s in U .S . I n t e r n a t io n a l T r a n s ­
a c t io n s . 4 /7 6 .
C h a n g e s in T im e a n d S a v in g s D e p o s it s a t C o m ­
m e r c ia l B a n k s , Ju ly-O ctob er 1 9 7 5 . 4 /7 6 .
R e v is e d S e r ie s f o r M e m b e r B a n k D e p o s it s a n d
A g g r e g a t e R e s e r v e s . 4 /7 6 .
B a n k H o l d in g C o m p a n y F i n a n c ia l D e v e l o p m e n t s
in 1 975. 4 /7 6 .
C h a n g e s in B a n k L e n d in g P r a c t ic e , 1 9 7 5 . 4 /7 6 .
I n d u s t r ia l P r o d u c t io n — 1 97 6 R e v isio n . 6 /7 6 .
F e d e r a l R e s e r v e O p e r a t io n s i n P a y m e n t M e c h a ­
n is m s : A S u m m a r y . 6 /7 6 .

A 82

Federal Reserve Bulletin □ June 1976

ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

WEEKLY RELEASES

APPROXIMATE
RELEASE DAY

DATE OR PERIOD
TO WHICH DATA
REFER

Aggregate Reserves and Member Bank Deposits (H.3)

Tuesday

Week ended previous
Wednesday

Applications and Reports Received or Acted on and All Other Actions
of the Board (H.2)

Friday

Week ended previous
Saturday

Assets and Liabilities of All Commercial Banks in the United
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

Deposits, Reserves, and Borrowings of Member Banks (H.7)

Wednesday

Week ended 3 Wed­
nesdays 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 Wednes­
day of previous
week

Open Market Money Rates and Bond Prices (H.15)

Monday

Week ended previous
Saturday

Reserve Positions of Major Reserve City Banks (H.5)

Friday

Week ended Wednes­
day of previous
week

Weekly Condition Report of Large Commercial Banks in New
York and Chicago (H .4.3)
Weekly Condition Report of Large Commercial Banks and D o­
mestic Subsidiaries (H .4.2)3

Thursday

Previous Wednesday

Wednesday

Wednesday, 1 week
earlier

Weekly Summary of Banking and Credit Measures (H.9)

Thursday

Week ended previous
Wednesday; and
week ended Wed­
nesday of previous
week

1st and 16th
of month

Period since last re­
lease

Assets and Liabilities of all Member Banks, by Districts (G .7.1)

14th of month

Last Wednesday of
previous month

Automobile Instalment Credit Developments (G.26)

6th working day 2nd month previous
of month

SEMIANNUALLY AND BIMONTHLY RELEASES
Research Library— Recent Acquisitions (J.2)

MONTHLY RELEASES

R elea se 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.
2On second Wednesday of month, contains monthly data release.

3Contains revised H.4.3 data.



Federal Reserve Board Publications

MONTHLY RELEASES (cont.)
APPROXIMATE
RELEASE DAY

A 83

DATE OR PERIOD
TO WHICH DATA
REFER

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

Consumer Instalment Credit (G.19)

3rd working
2nd month previous
day of month

Federal Reserve System Memorandum on Exchange Charges (K.14)

5th of month

Finance Companies (G.20)

5th working
2nd month previous
day of month

Period since last re­
lease

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)

15th of month

Previous month

Interdistrict Settlement Account (G.15)

15th of month

Previous month

Interest Rates Charged on Selected Types of Bank Loans (G.10)

15th of month

2nd month previous

Loan Commitments at Selected Large Commercial Banks (G.21)

20th 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

Summary of Equity Security Transactions (G.16)

Last week of
month

Release date

Bank Rates on Short Term Business Loans (E.2)

18th of
March, June,
September,
December

1st 15 days of Febru­
ary, May, August,
November

Capacity Utilization in Manufacturing (E.5)

21st of Jan­
Previous quarter
uary, April,
July, October

Finance Rates and Other Terms on Selected Types of Consumer
Instalment Credit Extended by Major Finance Com­
panies (E.10)

25th of Jan­
2nd month previous
uary, April,
July, October

Flow of Funds: Seasonally adjusted and unadjusted (Z .l)

15th of Febru­
ary, May,
August,
November

QUARTERLY RELEASES

Volume and Composition of Individuals’ Saving
(Flow of funds series) (E.8)
Geographical Distribution of Assets and
Foreign Branches of U .S. Banks ( E .ll)

Liabilities

1
I

J
of

Major

Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo­
rations (E.6)

Previous quarter

15th of
Previous quarter
March, June,
September,
December
10th of March, 2nd quarter previous
July, Septem­
ber, December

SEMIANNUAL RELEASES
Assets and Liabilities of Commercial Banks, by Class of Bank
(E.3.4)

May and N o­
vember

End of previous D e­
cember and June

Check Collection Services— Federal Reserve System (E.9)

February
and July

Previous six
months




A84

Federal Reserve Bulletin □ June 1976

APPROXIMATE
RELEASE DAY

SEMIANNUAL RELEASES (cont.)

DATE OR PERIOD
TO WHICH DATA
REFER

List of OTC Margin Stocks (E.7)

June 30, D e­
cember 31

Release date

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.)

May and N o­
vember

End of previous D e­
cember and June

February

End of Previous June

Bank Debits and Demand Deposits (C.5)

March 25

Previous Year

Member Bank Income (C.4)

End of May

Previous year

State Member Banks of Federal Reserve System and Nonmember
Banks that Maintain Clearing Accounts with Federal Reserve
Banks (G.4)

1st quarter of
year

End of previous year

15th of month

Previous month

ANNUAL RELEASES
Aggregate
Extension (C.2)

Summaries
of Annual

(Supplements issued monthly)




Surveys

of

Security

Credit

A 85

Index to Statistical Tables
References are to pages A-2 through A-75 although the prefix “ A ” is omitted in this index
ACCEPTANCES, bankers, 9, 25, 27
Agricultural loans of commercial banks, 16, 18
Assets and liabilities (See also Foreigners):
Banks, by classes, 14, 16, 17, 18, 30
Federal Reserve Banks, 10
Nonfinancial corporations, current, 41
Automobiles:
Consumer instalment credit, 45, 46, 47
Production index, 48, 49
BANK credit proxy, 13
Bankers balances, 16, 17, 20
(See also Foreigners)
Banks for cooperatives, 37
Bonds (See also U .S. Govt, securities):
New issues, 37, 38, 39
Yields and prices, 28, 29
Branch banks:
Assets, foreign branches of U .S. banks, 70
Liabilities of U .S. banks to their foreign branches
and foreign branches of U .S. banks, 22, 71
Brokerage balances, 69
Business expenditures on new plant and equipment, 41
Business indexes, 50
Business loans (See Commercial and industrial loans)

Demand deposits:
Adjusted, commercial banks, 11, 13, 17
Banks, by classes, 14, 17, 20, 21
Ownership by individuals, partnerships, and cor­
porations, 24
Subject to reserve requirements, 13
Turnover, 11
Deposits (See also specific types of deposits ):
Accumulated at commercial banks for payment of
personal loans, 24
Banks, by classes, 14, 17, 20, 21, 30
Federal Reserve Banks, 10, 72
Subject to reserve requirements, 13
Discount rates at Federal Reserve Banks (See Interest
rates)
Discounts and advances by Reserve Banks ( See Loans)
Dividends, corporate, 40, 41
EMPLOYMENT, 50, 52
FARM mortgage loans, 42
Federal agency obligations, 9, 10, 11
Federal finance:
Receipts and outlays, 32, 33
Treasury operating balance, 32
Federal funds, 5, 16, 18, 21, 27
Federal home loan banks, 37
Federal Home Loan Mortgage Corporation, 42, 43
Federal Housing Administration, 42, 43, 44, 45
Federal intermediate credit banks, 37
Federal land banks, 37
Federal National Mortgage Assn., 37, 42, 43
Federal Reserve Banks:
Condition statement, 10
U .S. Govt, securities held, 2, 10, 11, 34, 35
Federal Reserve credit, 2, 4, 10, 11

CAPACITY utilization, 50
Capital accounts:
Banks, by classes, 14, 17, 22
Federal Reserve Banks, 10
Central banks, 60, 75
Certificates of deposit, 22
Commercial and industrial loans:
Commercial banks, 13, 16
Weekly reporting banks, 18, 23
Commercial banks:
Assets and liabilities, 13, 14, 16, 17, 18
Consumer loans held, by type, 45, 46, 47
Deposits at, for payment of personal loans, 24
Loans sold outright, 25
Number, by classes, 14
Real estate mortgages held, by type of holder and
property, 42-44
Commercial paper, 23, 25, 27
Condition statements (See Assets and liabilities)
Construction, 50, 51
Consumer instalment credit, 45, 46, 47
Consumer price indexes, 50, 53
Consumption expenditures, 54, 55
Corporations:
Profits, taxes, and dividends, 41
Sales, revenue, profits, and dividends of large
manufacturing corporations, 40
Security issues, 38, 39
Security yields and prices, 28, 29
Cost of living (See Consumer price indexes)
Currency and coin, 3, 16
Currency in circulation, 3, 12
Customer credit, stock market, 29, 30

GOLD:
Certificates, 10
Reserves of central banks and govts., 60
Stock, 2, 59
Government National Mortgage A ssn., 42
Gross national product, 54, 55

DEBITS to deposit accounts, 11
Debt (See specific types o f debt or securities )

HOUSING permits, 50
Housing starts, 51




F e d e ra l R e se rv e n o te s , 10

Federally sponsored credit agencies, 37
Finance companies:
Loans, 18, 45, 46, 47
Paper, 25, 27
Financial institutions, loans to, 16, 18
Float, 2
Flow of funds, 56, 57
Foreign:
Currency operations, 10
Deposits in U .S. banks, 3, 10, 17, 21, 72
Exchange rates, 75
Trade, 59
Foreigners:
Claims on, 66, 67, 68, 72, 73, 74
Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74

A 86

Federal Reserve Bulletin □ June 1976

References are to pages A-2 through A-75 although the prefix “ A ” is omitted in this index
INCOME, national and personal, 54, 55
Industrial production index, 48, 49, 50
Instalment loans, 45, 46, 47
Insurance companies, 31, 34, 35, 42, 44
Insured commercial banks, 14, 16, 17, 24
Interbank deposits, 14, 20
Interest rates:
Bond and stock yields, 28
Business loans of banks, 26
Federal Reserve Banks, 6
Foreign countries, 74, 75
Money market rates, 27
Mortgage yields, 43, 45
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 8
International capital transactions of U .S ., 61-74
International institutions, 6 0-64, 66, 67-69 , 73
Inventories, 54
Investment companies, issues and assets, 39
Investments ( See also specific types of investments ):
Banks, by classes, 14, 16, 19, 30
Commercial banks, 13
Federal Reserve Banks, 10, 11
Life insurance companies, 31
Savings and loan assns., 31
LABOR force, 52
Life insurance companies ( See Insurance companies)
Loans ( See also specific types o f loans):
Banks, by classes, 14, 16, 18, 30
Commercial banks, 13, 14, 16, 18, 23, 25, 26
Federal Reserve Banks, 2, 4, 6, 10, 11
Insurance companies, 31, 44
Insured or guaranteed by U .S ., 42, 43, 44, 45
Savings and loan assns., 31
MANUFACTURERS:
Capacity utilization, 50
Production index, 49, 50
Margin requirements, 8
Member banks:
Assets and liabilities, by classes, 14, 16, 17
Borrowings at Federal Reserve Banks, 4, 10
Number, by classes, 14
Reserve position, basic, 5
Reserve requirements, 7
Reserves and related items, 2, 4, 13
Mining, production index, 49
Mobile home shipments, 51
Money market rates ( See Interest rates)
Money stock and related data, 12
Mortgages (See Real estate loans and Residential
mortgage loans)
Mutual funds (See Investment companies)
Mutual savings banks, 20, 30, 34, 42, 44
NATIONAL banks, 14, 24
National defense expenditures, 33
National income, 54, 55
Nonmember banks, 15, 16, 17, 24
OPEN market transactions, 9
PAYROLLS, manufacturing index, 50
Personal income, 55
Prices:
Consumer and wholesale commodity, 50, 53
Security, 29
Prime rate, commercial banks, 26
Production, 48, 49, 50
Profits, corporate, 40, 41




REAL estate loans:
Banks, by classes, 16, 18, 30, 42
Mortgage yields, 43, 45
Type of holder and property mortgaged, 42—44
Reserve position, basic, member banks, 5
Reserve requirements, member banks, 7
Reserves:
Central banks and govts., 60
Commercial banks, 17, 20, 22
Federal Reserve Banks, 10
Member banks, 3, 4, 13, 17
U .S. reserve assets, 59
Residential mortgage loans, 43, 44, 45
Retail credit, 46, 47
Retail sales, 50
SALES, revenue, profits, and dividends of large manu­
facturing corporations, 40
Saving:
Flow of funds series, 56, 57
National income series, 54, 55
Savings and loan assns., 31, 35, 42, 44
Savings deposits (See Time deposits)
Savings institutions, principal assets, 30, 31
Securities (See also U .S. Govt, securities):
Federally sponsored agencies, 37
International transactions, 68, 69
New issues, 37, 38, 39
Yields and prices, 28, 29
Special Drawing Rights, 2, 10, 58, 59
State and local govts.:
Deposits, 17, 20
Holdings of U .S. Govt, securities, 34, 35
New security issues, 37, 38
Ownership of securities of, 16, 19, 30
Yields and prices of securities, 28, 29
State member banks, 15, 24
Stock market credit, 29, 30
Stocks (See also Securities):
New issues, 38, 39
Yields and prices, 28, 29
TAX receipts, Federal, 33
Time deposits, 8, 13, 14, 17, 21, 22
Treasury currency, Treasury cash, 2, 3
Treasury deposits, 3, 10, 32
Treasury operating balance, 32
UNEMPLOYMENT, 52
U .S. balance of payments, 58
U .S. Govt, balances:
Commercial bank holdings, 17, 20
Member bank holdings, 13
Treasury deposits at Reserve Banks, 3, 10, 32
U .S. Govt, securities:
Bank holdings, 14, 16, 19, 30, 34, 35
Dealer transactions, positions, and financing, 36
Federal Reserve Bank holdings, 2, 10, 11, 34, 35
Foreign and international holdings, 10, 66, 68, 72
International transactions, 66, 68
New issues, gross proceeds, 38
Open market transactions, 9
Outstanding, by type of security, 34, 35
Ownership, 34, 35
Yields and prices, 28, 29
Utilities, production index, 49
VETERANS Administration, 43, 44
WEEKLY reporting banks, 18-22
YIELDS (See Interest rates)

A87

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

—

Boundaries of Federal Reserve Districts

----- Boundaries of Federal Reserve Branch
Territories
Q

Board of Governors of the Federal
Reserve System




®

Federal Reserve Bank Cities

•

Federal Reserve Branch Cities
Federal Reserve Bank Facility