Full text of Federal Reserve Bulletin : June 1977
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
JU NE
1977
FEDERAL RESERVE
BULLETIN
The Commercial Paper Market
Changes in Time and Savings Deposits, October 1976-January 1977
Foreign Exchange Operations: Interim Report
A copy of the Federal Reserve B u l l e t i n is sent to each mem ber bank without charge; m em ber banks desiring
additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the
United States and its possessions, and in Bolivia, Canada, Chile, Colom bia, Costa Rica, Cuba, Dom inican
Republic, Ecuador, Guatem ala, Haiti, Republic of Honduras, M exico, Nicaragua, Panam a, Paraguay, Peru,
El Salvador, Uruguay, and V enezuela is $20.00 per annum or $2.00 per copy; elsew here, $24.00 per annum
or $2.50 per copy. G roup subscriptions in the United States for 10 or more copies to one address, $1.75
per copy per m onth, or $18.00 for 12 months.
The B u l l e t i n may be obtained from the Division of Adm inistrative Services, Board of G overnors of the
Federal Reserve System , W ashington, D .C. 20551, and rem ittance should be m ade payable to the order
of the Board of Governors of the Federal Reserve System in a form collectible at par in U .S. currency.
(Stamps and coupons are not accepted.)
N U M B ER
6 □
V O L U M E 63 □
JU N E
1977
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
P U B L IC A T IO N S C O M M IT T E E
Stephen H. Axilrod □ Joseph R. Coyne □ John M. Denkler □ Janet O. Hart
John D. Hawke, Jr. □ James L. Kichline □ John E. Reynolds
Richard H. Puckett, Staff Director
The Federal Reserve B u l l e t i n is issued monthly under the direction of the staff publications committee. This
committee is responsible for opinions expressed except in official statements and signed articles. Direction for
the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed
by Elizabeth B. Sette.
Table o f Contents
525
T h e C o m m e r c ia l P a p e r M
556
arket
Discussion of the technical opera
tions of the commercial paper market,
including a short history, in view of the
increasing number of large corporations
that have met part of their credit needs
over the past decade through the sale
of commercial paper.
537
Survey
p o sit s ,
of
T im e
and
S a v in g s
T r easury
and
F ed e r a l R eserv e
Interim report for February through
April 1977 states that the markets for
most foreign currencies were fairly free
of strain in the period under review, in
large part due to the greater stability
of several currencies—notably the
pound, lira, French franc—that had
come under selling pressure in 1976.
S tatem ents
to
C ongress
Stephen S. Gardner, Vice Chairman
of the Board of Governors, discusses
the views of the Board on S. 71, S.
73, S. 895, and S. 1433 before the
Committee on Banking, Housing and
Urban Affairs, U.S. Senate, May 24,
1977.
Governor Partee also testifies on
H.R. 5675 before the Committee on
Banking, Housing and Urban Affairs,
U.S. Senate, June 6, 1977.
561
R ecord
D e
F o r e ig n E x c h a n g e O p e r a t io n s
551
558
O ctober 1 9 7 6 -J a n u a r y 1977
Results of the most recent survey
indicate that growth in total time and
savings deposits at all insured commer
cial banks accelerated moderately over
the 3-month period at a quarterly rate
of more than 3 per cent, not seasonally
adjusted.
548
J. Charles Partee, Member of the
Board of Governors, presents the views
of the Board on S. 600 before the
Subcommittee on Intergovernmental
Relations of the Committee on Gov
ernmental Affairs, U.S. Senate, May,
25, 1977.
of
P o l ic y A c t io n s
Federal O pen M
arket
of the
C o m m it t e e
In the meeting held on April 19,
1977, the Committee decided to retain
the existing longer-run range for growth
in M-l and to reduce the upper limits
of the longer-run ranges for growth in
M-2 and M-3. Members were willing
to tolerate growth in the monetary ag
gregates over the near term within
ranges that were higher than those
adopted for the year ahead, and in their
judgment such growth rates were likely
to be associated with a weekly-average
Federal funds rate of about 4% per cent.
Depending on the growth rates of the
monetary aggregates, the Federal funds
rate could be modified within a range
of 4 V2 to 5 lA per cent.
Subsequent to the meeting, when
nearly final estimates indicated a record
annual rate of growth for M-1 in April
and a substantial rate of growth for
M-2, the upper limit of the range for
the Federal funds rate was increased to
5Vi per cent, by vote of the Committee
on May 6.
577 L a w D e p a r t m e n t
615
Another strong increase in output—
an estimated 1.1 per cent—was re
corded in May.
Various rules and orders.
613
A
nnouncem ents
New provision of Regulation B
(Equal Credit Opportunity) regarding
credit histories of married persons.
Designation of five new standard
metropolitan statistical areas affects
banks and thrift institutions subject to
Regulation C (Home Mortgage Disclo
sure).
In a letter to the House Subcommit
tee on Financial Institutions, Regula
tion, and Insurance, the Board of Gov
ernors expressed support of the Inter
national Banking Act of 1977.
Publication of Sixty-Third Annual
Report of the Board of Governors.
New Equal Credit Opportunity pam
phlet.
Changes in Board staff.
Four State banks admitted to Federal
Reserve membership.
In d u s t r ia l P r o d u c t io n
Al
F in a n c ia l
and
B u s i n e s s S t a t is t i c s
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A 69
G u id e
and
to
T a b u l a r P r e s e n t a t io n
S t a t is t ic a l R e l e a s e s
A 72
B oard
A 74
O pen M
of
G overnors
arket
C o m m it t e e
S taff; Federal A
A 75
and
d v is o r y
F ed er a l R eserv e B a n k s
S taff
and
C o u n c il
and
B ranches
A 7 6 F ed er a l R eserv e B o a r d
P u b l ic a t io n s
A 81
In d e x
A 83
M
to
ap of
S t a t is t ic a l T a b l e s
F e d e r a l R e se r v e S y stem
The C om m ercial Paper M arket
This article was p rep a red by Evelyn M . Hurley
of the C apital M arkets Section of the B o a rd ’s
Division o f Research and Statistics. A ll notes
and/or references cited appear a t the end of the
article.
Over the past decade, an increasing number of
large corporations have met part of their credit
needs through the sale of commercial paper—
unsecured short-term promissory notes that are
offered to investors either through dealers or
directly by the issuer.1 Most commercial paper
carries an initial maturity of 60 days or less,
and only financially strong, highly rated bor
rowers have access to this market. To insure
payment at maturity, issuers generally maintain
back-up lines of credit at banks. The predomi
nant investors in commercial paper are large
institutions— such as insurance companies,
nonfinancial corporations, and bank trust
departments—which use these obligations as a
relatively low-risk outlet for short-term funds.
The volume of commercial paper outstanding
has increased fivefold during the past 10 years.
At the end of 1976 about 700 firms had $52.6
billion, seasonally adjusted, of such paper out
standing (Table 1). More than 60 per cent of
that total had been placed directly with inves
tors—mostly by large finance and bank holding
companies that have continuing, substantial
needs for short-term credit. The remainder, all
of which had been offered through dealers,
represented issues primarily of nonfinancial
corporations and of smaller finance and bank
holding companies. These issuers typically have
irregular and relatively smaller financing re
quirements.
For the firms that issue it, commercial paper
is an important substitute for bank credit. Such
substitution is especially prevalent among those
offering paper through dealers. These issuers do
not maintain a special staff to market their
paper, and they have less incentive to stay in
the market on a continuous basis to maintain
investor contacts and acceptance. As a result,
growth in dealer placed paper often accelerates
or decelerates in response to changes in the
relative cost and availability of bank credit.
For the many investors that buy it, commer
cial paper—because of its relatively low risk and
short maturity—is a close substitute for money
market instruments such as Treasury bills
and large-denomination certificates of deposit
(CD’s). As a consequence, yields on commer
cial paper move in concert with yields on these
other short-term market instruments. Due to the
lack of a well-developed secondary market,
however, commercial paper ordinarily requires
a small premium above rates on other, more
liquid short-term instruments.
The following discussion presents a more
detailed examination of commercial paper is
suers and of the distribution mechanism. The
review includes a description of ratings and the
rating agencies, together with further informa
tion on investors in commercial paper. There
1. Commercial paper outstanding
Seasonally adjusted, in billions of dollars
Jan. 31,
1966
Dec. 31,
1976
T otal .........................................
10.1
52.6
Financial firms ....................
Dealer placed ................
Bank-related ..............
Other ...........................
Directly placed ..............
Bank-related ..............
Other ...........................
10.0
1.7
8.3
39.7
7.3
1.9
5.4
32.4
6.0
26.4
Nonfinancial firms .............
.1
13.0
Type
1.7
8.3
N o te .— Monthly data for total com m ercial paper and its
m ajor components for the period 1966-76 will be published
in the B oard’s forthcom ing A nnu al S ta tistic a l D igest,
1 9 7 2 -1 9 7 6 .
Com ponents may not add to totals due to rounding.
526
Federal Reserve Bulletin □ June 1977
is also an exploration of yield structure, re
demption procedures, and practices regarding
maturities and back-up lines of credit. The dis
cussion concludes with a short .analysis of the
growth of the market, particularly since World
War II.
IS S U E R S O F
D IR E C T L Y P L A C E D P A P E R
Of the total volume of commercial paper out
standing at the end of 1976, $32.4 billion, or
more than 60 per cent, had been placed directly
by the borrowing firm with the investor without
the use of a dealer as intermediary (Table 2).
Currently, only about 75 companies offer their
paper in this way. For the most part, these are
very large finance companies and bank holding
companies that have top credit ratings, extensive
banking and money market relationships, and
a continuous need for large amounts of short
term funds.
A considerable amount of borrowing is re
quired to justify the substantial fixed costs of
distributing paper without dealer assistance. As
a result, issuers seldom find it economical to
place paper directly unless the average monthly
volume of their paper outstanding exceeds $100
million; in fact, average amounts outstanding
of such paper at the end of 1976 were around
$650 million per issuer. Purchases of new issues
of directly placed paper also are large, usually
about $500,000 per investor. Furthermore, in
the case of one or two issuers that sell to large
institutions, sales of new paper average as much
as $1 million per investor.
By distributing commercial paper on their
own, issuers save the dealer’s fee of Vs of a
percentage point, or $125,000 per $100 million
of paper offered. Direct placement also allows
greater flexibility in adjusting interest rates and
maturities to meet an investor’s preferences.
Offsetting these advantages to some extent is
the need to set up and maintain a marketing
department. Another offsetting factor is that
direct issuers typically accommodate customers
by accepting all orders at quoted interest rates,
even if the issuer’s need for funds is already
satisfied.2 As a result, there are times when
excess funds may have to be reinvested in
2. Directly placed commercial paper
outstanding, by type
End-of-year figures, seasonally adjusted; in billions of
dollars
Year
Total
Nonbank
Bankrelated
1966
1967
1968
1969
.......................
.......................
.......................
.......................
11.1
12.7
14.6
20.8
11.1
12.7
14.6
17.7
3.1
1970
1971
1972
1973
1974
.......................
.......................
.......................
.......................
.......................
20.5
20.6
22.1
27.2
31.8
18.5
19.2
20.7
24.3
25.3
2.0
1.4
1.4
2.9
6.5
1975 .......................
1976 .......................
31.2
32.4
24.3
26.4
6.9
6.0
money market instruments, perhaps on unfa
vorable terms.
Other costs, incurred by both direct placers
and those distributing paper through dealers,
include: (1) reimbursement of banks for back-up
lines of credit—usually with compensating bal
ances of 10 per cent of total lines extended to
the issuer, plus an additional 10 per cent of lines
actually used; (2) fees to a money market bank
that acts as the issuer’s agent in the collection
and payment of notes; and (3) fees to rating
services for evaluating commercial paper.
Finance companies are the major issuers of
directly placed paper, accounting for more than
80 per cent of the total of such paper outstanding
at the end of 1976. These issues have been an
important and growing source of funds for fi
nance companies. By mid-1975—the latest pe
riod for which data are available—directly
placed paper represented 65 per cent of the total
short-term debt of these companies, up from
nearly 50 per cent 10 years earlier.3 By com
parison, over the same period, the bank loan
portion of short-term obligations of finance
companies fell from 36 to 22 per cent.
It must be noted, however, that only a small
nilmber of very large finance companies have
access to the directly placed commercial paper
market. According to the 1975 Federal Reserve
survey of finance companies—which covered
nearly 3,400 firms— 46 companies, each report
ing combined business and consumer accounts
receivable of $100 million or more, accounted
Com m ercial Paper Market
for 99 per cent of all commercial paper placed
directly by finance companies and outstanding
at the time of the survey.
About one-fifth of all finance company com
mercial paper outstanding is issued via ‘‘master
notes,” which are sold to large, steady suppliers
of funds such as bank trust departments. Under
these master note agreements, bank trust
departments make daily purchases of commer
cial paper, payable on demand, up to some
predetermined amount. Each day the trust
department informs the issuer of the amount of
paper it will take under the master note. Though
the amount outstanding may fluctuate from day
today, interest is usually payable on the average
daily balance for the month, at the 180-day
commercial paper rate.
Bank holding companies represent the second
largest group of issuers of directly placed com
mercial paper. These firms did not begin to tap
this market until 1969, but by the end of 1976
they accounted for about 18 per cent of all
such paper outstanding. Although the paper
itself is an obligation of the bank holding com
pany or its nonbank affiliates or subsidiaries, the
proceeds from such sales may be channeled to
the subsidiary bank or to other affiliates and
subsidiaries. If the proceeds are channeled to
a Federal Reserve member bank, they are sub
ject to reserve requirements.
IS S U E R S O F
DEALER PLACED PAPER
More than $20 billion of the commercial paper
outstanding at the end of 1976, or about 38 per
cent of the total, had been sold through dealers
(Table 3). Borrowers market their paper through
dealers for several reasons: they may not be well
enough known to issue paper without dealer
contacts; their needs may be temporary; or their
financing requirements may be too small to
justify an in-house marketing department. More
than 650 corporations currently sell or guarantee
paper in the dealer market.4 Of these, about 300
are industrial companies and 170 are public
utilities (Table 4). Smaller finance companies
and bank holding companies, as well as mort
gage companies and firms engaged in trans
5 27
3. Dealer placed commercial paper
outstanding, by type
End-of-year figures, seasonally adjusted; in billions of
dollars
Financial
Year
Total
Nonfi
nancial
Total
Nonbank
Bankrelated
1966
1967
1968
1969
................
................
................
................
3.2
5.2
7.5
12.2
.8
2.3
3.0
5.7
2.4
2.8
4.5
6.5
2.4
2.8
4.5
5.3
1.2
1970
1971
1972
1973
1974
................
................
................
................
................
13.0
11.9
13.0
14.3
17.9
7.6
6.6
7.4
8.8
13.3
5.5
5.3
5.6
5.5
4.6
5.1
4.8
4 .4
3.5
2.8
.4
.5
1.2
1.9
1.8
1975 ................
1976 ................
16.9
20.3
10.7
13.0
6.2
7.3
4.5
5.4
1.8
1.9
N o t e .— Com ponents may not add to totals due to rounding.
portation, insurance, and leasing, plus a few real
estate investment trusts (REIT’s), account for
the remainder.
In view of the prevalence of industrial com
panies and the utilities among issuers, it is not
surprising to find that nonfinancial corporations
account for more than 60 per cent of the out
standing paper issued through dealers. These
corporations typically use paper to meet sea
sonal needs, or as a substitute for bank credit
because of relative cost, or at times to delay
longer-term financing because of unfavorable
market conditions. Although most of these firms
have a net worth of $100 million or more, a
few have a net worth as low as $50 million.
The smaller companies, however, are not heav
ily leveraged, and they have very good financial
records or the guarantee of a well-established
parent company. Many oil pipeline companies,
for example, are able to sell paper backed by
their parent oil companies, although they have
considerably lower net worth than other issuers.
At the end of 1976 about 160 financial firms
were using the dealer market, and their paper
outstanding amounted to $7.3 billion (Table 3),
of which one-fourth was bank related. These
firms, which include smaller and less wellknown bank holding companies and finance
companies (primarily finance subsidiaries of
manufacturers and retailers), usually have a net
528
Federal Reserve Bulletin □ June 1977
4. Companies having commercial paper
ratings, by industry, October 19761
Industry grouping
Num ber of companies
Industrial .............................................
Public utility .....................................
Finance company .............................
Bank holding com pany ..................
REIT ...................................................
316
173
91
80
10
Insurance ............................................
Transportation ....................................
Leasing ................................................
Governm ent .......................................
18
4
21
1
T o tal
..............................................
714
1Based on listings of M oody’s Investors Service, Standard
& P oor’s Corporation, and Fitch Investors Service.
worth on the order of $40 million to $50 mil
lion—smaller than the nonfinancial companies.
As a result, financial companies in the dealer
market often have lower commercial paper rat
ings and pay somewhat higher interest rates than
other borrowers.
Some even smaller or less well-known finan
cial and nonfinancial firms use a bank “ standby
letter of credit” to gain access to the dealer
market. The letter of credit guarantees that a
particular bank, if necessary, will repay the
issuer’s commercial paper at maturity. The is
suer usually obtains the standby letter by paying
the bank a fee and obtaining a line of credit,
ordinarily supported by compensating balances.
The promissory note of the issuer, with the
attached standby letter of credit, is referred to
as a “ documented discount note.” 5
At the end of 1976 about $600 million, or
3 per cent, of dealer placed commercial paper
outstanding represented documented discount
notes. The largest portion had been issued by
companies that supply nuclear fuel or the energy
derived from it to electric utilities. Other issuers
of documented discount notes included leasing
companies, REIT’s, and mortgage companies.6
C O M M E R C IA L P A P E R D E A L E R S
At the end of 1976 there were 10 dealers ac
tively engaged in placing commercial paper. In
purchasing paper from issuers, dealers generally
charge Vs of a percentage point as their fee.
Paper not sold immediately to investors is added
to dealer inventories; paper in inventory usually
is turned over within 10 days. During periods
of market stress, however, some dealers will
take new paper only on a “best efforts to sell”
basis.
Inventories are financed either by overnight
repurchase agreements (Rp’s) or by secured call
loans from banks, in both cases with financing
costs closely tied to the Federal funds rate. Rates
on commercial paper Rp’s are usually Vs to V
a
of a percentage point above the Rp rate on
Treasury securities, which fluctuates around the
Federal funds rate.
Unlike direct placers, who accept all reason
able offers from investors, dealers may not be
able to accept all of the money that investors
wish to place in obligations of a particular
company on any given day, nor do they have
direct control over maturities; they sell only the
paper that they have purchased that day or the
paper from their inventory. To satisfy investors’
demands, dealers may relay to issuers any spe
cial orders or requests they receive specifying
the quantity and maturity of paper, but the issuer
makes the final decision on these matters and
makes no commitment to issue regularly.
The average size of note placed by the major
dealers with an investor on a single day cur
rently varies between $1.5 million and $2.5
million. The minimum amount of a given issue
usually is $100,000, but some dealers occa
sionally handle smaller denominations at the
request of issuers that are exceptionally good
customers. Dealers also accommodate requests
from money market banks to purchase smaller
amounts because of the role of these banks as
major purchasers of paper for the accounts of
their trust departments and other customers.
R A T IN G O F IS S U E S
Three services currently evaluate commercial
paper; for such an evaluation the issuing com
pany pays a fee. Moody’s Investors Service
rates the paper of more than 550 issuers. Stand
ard & Poor’s Corporation rates the paper of
some of these same companies, plus 150 others.
Fitch Investors Service rates 54 companies, but|
most of these are also rated by one of the other
Com m ercial Paper Ma rket
two services. Thus, about 700 issuers are rated
by one or more of the three services (Table 4).7
Paper is rated Prime-1 (P-l), Prime-2 (P-2), or
Prime-3 (P-3) by Moody’s; A -l, A-2, or A-3
by Standard & Poor’s; F -l, F-2, or F-3 by Fitch.
Each service gives the “ 1” rating to the highest
quality paper and the “ 3” to the lowest.
Unrated or lower-rated paper cannot be sold
easily in today’s market. Only paper with the
two highest ratings by Moody’s or Standard &
Poor’s is readily accepted. However, P-3 or A-3
paper does sell occasionally, depending on the
reputation of the issuer and the interest rate
premium.
Commercial paper with a given rating will
pay a higher or a lower yield depending on the
ratings assigned to the issuer’s bonds—the bet
ter the bond rating, the lower the yield on com
mercial paper. In general, issuers or guarantors
of paper in the present market have bonds out
standing that are rated as being of minimum
investment grade or better.8
Since the default of the Penn Central Trans
portation Company in mid-1970, ratings on
commercial paper have affected the accept
ability of an offering, but as of mid-1977 they
will also affect the net capital requirements of
the dealer who handles such paper. According
to a ruling by the Securities and Exchange
Commission (SEC), scheduled to become ef
fective July 1, 1977, a dealer who takes into
inventory the paper of an issuer that does not
have ratings from two rating services must pro
tect his solvency by “ writing down” the value
of this paper taken into inventory—the write
down varying from 15 to 30 per cent. In view
of this requirement, most dealers are now ad
vising issuers that they will handle any paper
without two ratings only on a “best efforts”
basis.
IN V E S T O R S
Both direct issuers of, and dealers in, commer
cial paper have indicated that their principal
customers are large money market banks (pur
chasing mainly on behalf of their trust depart
ments or bank customers), nonfinancial cor
porations, insurance companies, private pension
funds, State and local governments, investment
5 29
companies, and foundations. But there is rela
tively little documented information on the
amounts of such paper held by these various
groups. As of year-end 1976 there was $52.0
billion of commercial paper outstanding, not
seasonally adjusted. Of this total, $11.3 billion
was held by corporations engaged in manufac
turing, mining, and wholesale or retail trade.9
At the same time, life insurance companies
accounted for about $5.3 billion.10 Although
money market banks apparently make substan
tial purchases for their own trust departments
or for customers, they appear to purchase little
for their own accounts. As of December 29,
1976, less than $500 million of commercial
paper was included in commercial and industrial
loans outstanding at large commercial banks.
Though individuals do not play a major role
in the market, there is reason to believe that
they have acquired larger amounts of directly
placed paper over the past several years. This
is indicated by the fact that some finance com
panies selling paper directly have greatly re
duced the minimum amount of paper they will
sell to any investor. Whereas previously most
companies had offered paper in minimum de
nominations of $50,000 or $100,000, today
at least nine companies have published minimums of $25,000 for paper maturing in 30 days
or more. And other companies, although they
still post minimums of $50,000 or $100,000,
will attempt to accommodate an order of any
size given by a large money market bank in
order to maintain good working relationships
with the institution.
R E D E M P T IO N S A N D
M A T U R IT IE S O F P A P E R ,
A N D B A C K -U P L IN E S O F C R E D IT
There are no established secondary markets for
either dealer or directly placed paper. Hence,
if an investor becomes hard pressed, it is cus
tomary for a dealer to contact an issuer to
ascertain if the issuer is willing to redeem the
obligation before the due date. Most issuers
accommodate a hard-pressed investor if they
can. Among direct placers, finance companies
redeem on a similar basis.
530
Federal Reserve Bulletin □ June 1977
In general, however, the need to repurchase
paper before maturity is lessened by the fact
that the maturities on a large part of this paper
are very short. Most of these obligations have
an original maturity of less than 60 days, and
for a large portion the initial maturity is less
than 1 month. The average maturity on directly
placed paper ranges for the most part from 20
to 40 days, and that on dealer placed paper from
30 to 45 days. Maturities vary among dealers,
depending upon the needs of the issuers and the
quality of the obligations. Paper of lower quality
tends to have a shorter average maturity, as
issuers attempt to tailor the maturity to appeal
to the cautiousness of investors. Short maturities
enable investors to reduce their positions
quickly if signs of significant financial difficul
ties for the issuer appear, but this corre
spondingly implies that commercial paper may
represent a volatile source of funds for weak
borrowers.
To provide both an alternative means of fi
nancing in case of reduced access to the market
and an additional assurance that they can repay
outstanding paper at maturity, issuers maintain
back-up lines of credit. Dealers and investors
often insist on formal contractual arrangements
between the issuer and a bank to provide 100
per cent coverage if a company’s paper is rated
below A-l or P-l or if an issuer is thought to
be in potential financial difficulty. The backing
may be less complete in the case of larger, better
regarded issuers.
S T R U C T U R E O F IN T E R E S T R A T E S
A N D T H E C Y C L IC A L B E H A V IO R
O F C O M M E R C IA L P A P E R
As might be expected, yields on commercial
paper are strongly affected by ratings, by ma
turities, by interest rates on alternative invest
ments, and by the national reputation of the
issuer. Interest rates differ little between, on the
one hand, paper placed directly by large nation
ally known finance companies and, on the other
hand, dealer placed paper of companies with
both Aaa bond ratings and A-l and/or P-l
commercial paper ratings. Nevertheless, since
most dealer paper—even though rated A-l or
P -l—is issued by companies with Aa bond
ratings, most of it yields at least Vs of a per
centage point more than directly placed paper.
Yields on commercial paper tend to move in
concert with yields on other short-term market
instruments, with any differences reflecting spe
cial considerations or investor preferences. Two
instruments in particular may be mentioned—
Treasury bills and large-denomination CD’s of
banks. Rates on the highest quality commercial
paper tend to move with, but at levels Vs to
V of a percentage point higher than, those on
a
Treasury bills of comparable maturity; the dif
ference between the two reflects the lack of a
well-established secondary market for commer
cial paper and the fact that such paper carries
a risk premium relative to obligations of the
U.S. Government. Insofar as commercial paper
and CD’s are concerned, both investors and
banks issuing CD’s treat the two as close sub
stitutes. Yields on the two tend to move in
concert, although commercial paper rates may
be either higher or lower than CD rates. The
relative costs may be of special importance to
banks. If rates on CD’s are high relative to those
on commercial paper, banks may, if they are
part of a holding company group, obtain funds
for lending and investment from the proceeds
of commercial paper channeled to the bank from
the parent holding company or other members
of the group.
Relative costs may also make it worthwhile
for nonbank issuers of paper to seek funds from
sources other than the commercial paper market.
For such issuers, bank loans often constitute an
important alternative. Bank rates tend to move
more sluggishly than new-issue commercial
paper rates, which adjust in step with more
sensitive money market yields.11 In periods of
rising open market rates the prime rate usually
moves up less rapidly than commercial paper
rates, and in periods of falling open market
yields the prime edges down more slowly. Ac
cordingly, many commercial paper issuers use
bank credit relatively more in the upswing of
the business cycle when this source of funds
is relatively less expensive. Similarly, they use
bank credit relatively less in the downswing of
Commercial Paper Market
the cycle when commercial paper becomes
comparatively more attractive.
Issuers in the dealer market are in a better
position than direct placers to switch between
bank credit and commercial paper since they
have little need to maintain investor contacts and
acceptance by continuously offering these obli
gations. Thus, dealer placed paper, especially
by nonfinancial issuers, may tend to grow contracyclically (Chart 1).
1. Business-cycle com parisons o f
com m ercial paper outstanding
:
- . .-
Billions of dollars
Seasonally adjusted data. Peaks and troughs are those estab
lished by the National Bureau of Economic Research, Inc.
GROW TH OF THE
C O M M E R C IA L P A P E R M A R K E T
Although commercial paper was issued in lim
ited amounts in the 1800’s, it was not until the
first decade of the 1900’s that dealers began to
sell commercial paper in the open market. After
that, the market grew rapidly, and by 1920 there
were between 4,000 and 5,000 corporations
issuing commercial paper on a fairly regular
basis, with more than 30 commercial paper
houses acting as intermediaries. In the early
1920’s General Motors Acceptance Corporation
(GMAC) became the first major company to
place paper directly. In the 1930’s two other
finance companies—CIT Financial Corporation
and Commercial Credit Corporation—joined
GMAC as direct placers.
L ate 1940’s
to
531
M id - 1960’s
The economic conditions characterizing the de
pression of the 1930’s, and the excess liquidity
available during World War II, curtailed the
growth of the commercial paper market, and it
was not until the late 1940’s that the market
began to expand again. The volume of paper
outstanding was less than $200 million at yearend 1945, but after that it grew almost continu
ously to about $3.7 billion by the end of 1959.
This growth—which occurred in finance com
pany paper, both directly placed and dealer
placed—reflected the general expansion of con
sumer and business needs for credit during the
postwar years. In order to meet these demands,
finance companies sought to expand the market
for their paper and increasingly tailored denom
inations and maturities to appeal to nonbank
investors. As a result, this group became the
major investors in commercial paper, a role that
had been played by commercial banks during
the prewar periods. Commercial banks, on the
other hand, began to use Treasury bills more
extensively as a secondary reserve asset.
The volume of commercial paper out
standing—both dealer and directly placed—
continued to expand in the early 1960’s. This
growth reflected in large part the over-all ex
pansion in consumer and business loans of fi
nance companies that accompanied the rise in
economic activity.
M id - 1960’s
to
1970
In the latter part of the 1960’s activity in the
dealer market expanded sharply as increased
numbers of nonfinancial corporations began is
suing paper (Chart 2). The initial impetus for
growth during the second half of the 1960’s
occurred in 1966, when the relatively high cost
of borrowing in the capital market encouraged
companies to place greater reliance on short
term funds for their external financing. In the
final three quarters of that year many companies
found it difficult to obtain bank credit as loans
were being stringently rationed. In this period
the interest rate ceilings allowed under Regula
tion Q constrained banks from obtaining a larger
532
Federal Reserve B ulletin □ June 1977
2. C o m m e r c ia l p a p e r o u ts ta n d in g
Seasonally adjusted data.
volume of funds through the sale of large-denomination CD’s. Since banks did not have the
funds to lend, many nonfinancial companies
were forced to seek new sources of funds.
Under these circumstances commercial paper
became an important source of financing for
large, well-known firms, and a substantial num
ber of companies—especially utilities and in
dustrial concerns—began to issue such paper.
Although bank credit became readily available
in 1967, many companies that had turned to the
commercial paper market as a temporary alter
native in 1966 continued to issue paper regu
larly—and at a cost less than that of bank credit.
When demands for credit intensified again in
1969, banks sought to develop new sources of
funds to lend. One source was through bank
holding companies and their affiliates and sub
sidiaries, which sold commercial paper and used
the proceeds to purchase part of the bank’s loan
portfolio. This marked the beginning of a sharp
build-up in the volume of paper issued through
holding companies. By the end of 1969 bankrelated paper outstanding amounted to $4.3 bil
lion, and 7 months later—in July 1970—had
reached $7.8 billion.
In the next month, August 1970, the Federal
Reserve took action to make funds channeled
to a member bank from the proceeds of a
commercial paper issue by a bank holding com
pany, affiliate, or subsidiary subject to reserve
requirements. This action, coupled with the
Board’s earlier liberalization of Regulation Q
interest rate ceilings on short-term, large-denomination CD’s, contributed to a rapid drop
in bank-related paper during the fall and winter
of 1970. By the end of the year bank-related
paper outstanding had declined to $2.3 billion.
E ffect of
P e n n C entral B ankruptcy
Despite the sharp growth in the reliance on
commercial paper in the period between 1946
and early 1970 only two major defaults occurred
among commercial paper issuers, and these in
volved rather small companies that were not too
well known.12 As a result of these defaults in
vestors did become wary of the smaller and
weaker companies, but they showed no lack of
confidence in the large, well-known companies.
On June 21, 1970, the Penn Central Trans-
Commercial Paper M arket
portation Company filed for bankruptcy, leaving
$82 million of commercial paper outstanding.
The company’s default caused investors to be
come concerned about the liquidity and ability
of many other corporations to meet their com
mercial paper obligations. Because investors
became extremely conscious of quality, many
companies encountered trouble in refinancing
their paper as it matured.
The Federal Reserve System immediately
moved to make funds available for creditworthy
customers by temporarily liberalizing its dis
count policy for member banks. It also sus
pended Regulation Q interest rate ceilings on
large-denomination, 30- to 89-day CD’s to en
sure that commercial banks would be able to
accommodate creditworthy customers.
Within a short period of time, the crisis had
passed and investors began to return to the
market. They were much more selective, how
ever, as is indicated by the fact that a sizable
rate spread developed between paper issued by
the highest rated companies and that of the
lowest rated companies. Many lower-rated
companies were unable or unwilling to pay such
high premiums, and those that needed credit
during the summer and fall of 1970 obtained
it from their banks.
533
pressures intensified and open market rates con
tinued to rise, the commercial paper rate moved
above the prime rate. This led large nonfinancial
companies to begin paying off their maturing
commercial paper and to use long-established
bank lines of credit instead. Bank loans out
standing to nonfinancial businesses rose by
nearly $12 billion13 during the first quarter of
the year, whereas nonfinancial commercial
paper actually declined $1.7 billion. Largely as
a result of this shifting of short-term credit
demands to banks, the CID recommended a dual
prime rate in April 1973. Under this system,
one rate was applicable to large businesses and
was more reflective of market interest rates. The
other, limited in movement, was applicable to
3. Interest rates, and grow th o f
nonfinancial com m ercial paper
Billions of dollars
V o lu nta ry R estraints
In I nterest R a t e s , 1971-73
In 1971, with inflationary pressures accompa
nying the limited recovery from the previous
recession, wage and price controls were im
posed on most sectors. As part of this program,
the Committee on Interest and Dividends (CID)
was created on October 15, 1971, to establish
voluntary restraints on rates of return from cer
tain types of financial transactions. The CID
made no attempt to control open market interest
rates but concentrated instead on institutional or
“ administered” rates. In 1972, for example, as
the economy expanded further and both market
rates and the prime rate began to move upward
after some months of decline (Chart 3), the CID
strongly urged banks to limit their prime rate
increases.
In the early months of 1973, as inflationary
Data for nonfinancial paper outstanding is seasonally ad
justed. Rate spread is monthly-average difference between
the bank prime rate and the rate on 4- to 6-m onth dealer
com mercial paper through M arch 1971 and on 30- to 59-day
paper thereafter.
534
Federal Reserve B ulletin □ June 1977
5. Bank prime rate and rate on commercial paper
M onthly-average rates, per cent per annum; spread, percentage points
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971
Prime rate .......................................
Dealer rate .......................................
Spread ..............................................
6.29
4.97
1.32
5.88
4.38
1.50
5.44
4.10
1.34
5.28
4.48
.80
5.46
4.94
.52
5.50
5.27
.23
5.91
5.61
.30
6.00
5.61
.39
6.00
5.57
.43
5.90
5.27
.63
5.51
4.75
.76
5.49
4.47
1.02
1972
Prime rate .......................................
Dealer rate .......................................
Spread ..............................................
5.17
3.84
1.33
4.75
3.41
1.34
4.75
3.74
1.01
4.98
4.35
.63
5.00
4.20
.80
5.06
4.42
.64
5.25
4.58
.67
5.28
4.54
.74
5.50
4.87
.63
5.73
4.98
.75
5.75
4.93
.82
5.79
5.27
.52
1973
Prime rate .......................................
Dealer rate .......................................
Spread ..............................................
6.00
5.63
.37
6.03
6.02
.01
6.30
6.61
- .3 1
6.61
6.90
-.2 9
7.01
7.06
-.0 5
7.49
7.90
- .4 1
8.29 9.22
9.19 10.15
- .9 0 -.9 3
9.88
10.28
- .4 0
9.94
9.42
.52
9.76
9.38
.38
9.75
9.79
—.04
1974
Prime rate .......................................
Dealer rate .......................................
Spread ..............................................
9.73
9.31
.42
9.21
8.36
.85
8.83 10.02 11.25 11.54 11.98 12.00 12.00 11.68 10.83 10.50
8.92 10.10 10.86 11.16 11.94 11.78 11.46 9.73 9.15 9.47
- .0 9 - .0 8
.04
.54
.39
.38
.22
1.95
1.68
1.03
1975
Prime rate .......................................
Dealer rate .......................................
Spread ..............................................
10.05
7.45
2.60
8.96
6.37
2.59
7.93
6.02
1.90
7.50
5.93
1.57
7.40
5.48
1.92
7.07
5.45
1.62
7.15
6.15
1.00
7.66
6.40
1.29
7.88
6.53
1.35
7.96
6.05
1.91
7.53
5.43
2.10
7.26
5.51
1.75
1976
Prime rate .......................................
Dealer rate .......................................
Spread ..............................................
7.00
4.76
2.24
6.75
4.86
1.89
6.75
5.05
1.70
6.75
4.81
1.94
6.75
5.18
1.58
7.20
5.58
1.62
7.25
5.29
1.96
7.01
5.10
1.91
7.00
5.09
1.91
6.78
4.89
1.89
6.50
4.78
1.72
6.35
4.51
1.84
Rate
N o t e .— Rate for commercial paper is for 30- to 59-day paper placed by dealers. Prime rate is the predominant rate charged
by banks on short-term business loans.
Source for prime rate, Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve
System; for dealer commercial paper rate, Federal Reserve Bank of New York.
small businesses. This new policy made it pos
sible for interest rates on bank loans to large
national firms to be responsive to changes in
money market conditions.
In spite of the dual prime rate and the higher
rates it permitted on large loans, credit demands
during the summer centered on banks because
the commercial paper rate rose faster than the
prime. In the final quarter of 1973, however,
the situation was reversed; the rate on commer
cial paper dropped below the prime and the
volume of dealer placed commercial paper out
standing rose substantially (Table 5).
S tresses
on the
M arket , 1973-74
Severe economic problems became evident in
1974, exacerbated by the oil embargo imposed
in late 1973. Many utility companies, for ex
ample, experienced serious difficulty in selling
commercial paper in 1974. Although fuel costs
soared for these companies as a result of the
oil crisis, many utility rate regulations prevented
a complete pass-through of the higher costs.
Customers also reduced their consumption of
energy in response to higher rates and conser
vation campaigns. As utility earnings and li
quidity deteriorated, the rating services down
graded both the long-term debt and the com
mercial paper ratings of the utilities. In 1974,
for example, one major service lowered the
commercial paper ratings of 13 utilities, while
14 others withdrew from the service rather than
receive lower ratings. Finding it difficult to sell
commercial paper, utilities turned to their banks
for needed funds.
In addition, REIT’s, which had begun to tap
the commercial paper market for short-term
funds during 1972 and 1973, began to experi
ence problems in selling commercial paper early
in 1974. Their problems stemmed from a sharp
increase in loan defaults and foreclosure pro
ceedings in late 1973 and early 1974 mainly
in sectors not associated with “ home build
Commercial Paper Market
ing” — that is, multifamily and commercial
properties— and a number of the trusts ceased
paying dividends. As a result, rating services
began downgrading REIT commercial paper,
and many investors refused to purchase new
issues of REIT paper as the existing paper
matured. At the beginning of 1974, REIT’s had
nearly $1.8 billion in commercial paper out
standing, but by the end of the year this total
had been reduced to $175 million. Much of the
reduction was accomplished by borrowing from
banks. Since 1974 the volume of REIT paper
has edged up only slightly.
In the spring of 1974 the publicity surround
ing the problems of Franklin National Bank and
its parent holding company caused investors to
become concerned about commercial paper of
bank holding companies. Major bank holding
companies in New York and Chicago and on
the West Coast found that they had to pay
premiums to investors, and sales of paper by
a few smaller holding companies came to a
virtual fyalt. These difficulties were clearly re
flected in a sharp drop in the amount of dealerdistributed bank-related paper, which is issued
primarily by the less well-known holding com
panies. From April 30 to July 31, the volume
of such paper outstanding declined from $2.3
4. Q uality rate spread
Percentage points
Rate spread is m edium -grade less high-grade commercial
paper calculated from rates charged by two m ajor dealers for
dealer placed 30- to 59-day paper; ratings for m edium -grade,
A-2 or P-2; for high-grade, A -l or P -l.
535
billion to $1.5 billion, then revived somewhat.
Rate spreads between the highest quality com
mercial paper and medium-quality paper rose
from 38 basis points earlier in the year to a peak
of 169 basis points in October when Franklin
National Bank was declared insolvent (Chart 4).
Several large finance company subsidiaries of
manufacturing and retailing firms also found that
investors had become very “ quality con
scious.” As in the case of the REIT’s and
utilities, these subsidiaries were forced to turn
to their banks for funds. The finance company
subsidiary of W.T. Grant Co. paid off most of
its commercial paper during the first half of 1974
through the use of bank loans.
It may be noted, however, that throughout
1974 firms with Aaa or Aa bond ratings and
the highest commercial paper ratings found a
ready market for their paper. Reflecting strong
demands for short-term credit, total commercial
paper increased appreciably over the year,
despite the problems of weaker borrowers.
•
i
...
‘
Post - 1974 E xperience
Since 1974 the extreme selectivity of investors
in commercial paper has receded. The rate
spread between highest quality and mediumquality paper, which was well over a full per
centage point in early 1975, had narrowed to
% of a percentage point by the end of that year
and by the end of 1976 had returned to the 3
/s
of a percentage point that had prevailed before
the disturbances in the market in 1974 (Chart
4).
Throughout most of 1975 total demands for
short-term financing were weak as businesses
liquidated excess inventories and restructured
their balance sheets by relying on long-term debt
markets. Over the year total commercial paper
declined somewhat. But during 1976, as short
term credit demands in total ceased declining
and then rose, and as the cost of commercial
paper remained low relative to the cost of bank
loans, commercial paper outstanding rose
sharply. By year-end 1976, commercial paper
outstanding totaled $52.6 billion, seasonally
adjusted— a new record.
□
536
Federal Reserve B ulletin □ June 1977
FO O TN O TES
S ectio n 3(a)(3) of the Securities Act of 1933 exempts
commercial paper from registration by the Securities and
Exchange Commission (SEC) providing these are notes
“ which arise out of a current transaction or the proceeds
of which have been or are to be used for current
transactions, and which have a maturity at time of
issuance of not exceeding nine months . . . or any
renewal thereof . . . .”
2Issuers, though, may often change their quotes
throughout the day.
3See “ Survey of Finance Companies, 1975,” Federal
Reserve B u l l e t i n , Mar. 1976, p. 205.
4Of these, 16— mainly bank holding companies—
also issue some directly placed paper, and 24 do not
issue paper themselves but serve merely as guarantors
of affiliates’ paper.
5 The three Federal regulatory agencies that have
jurisdiction over commercial banks— Board of Gover
nors of the Federal Reserve System, Federal Deposit
Insurance Corporation, and Office of the Comptroller
of the Currency— adopted rules in 1974 specifying
that banks issuing these standby letters of credit must:
(a) aggregate the amount of all letters of credit, ineligi
ble acceptances, and loans in determining whether the
bank would exceed applicable statutory limits on loans
to any one borrower; (b) subject the customer for whose
account this standby letter of credit is issued to the same
credit analysis as that applicable to a potential borrower
in an ordinary loan situation; and (c) adequately disclose
in the bank’s published financial statements the amount
of all outstanding standby letters of credit and maintain
records making it possible to determine the total amount
of potential liability of the bank from issuance of all
its standby letters of credit.
6Under Section 3(a)(2) of the Securities Act of 1933,
any security issued or guaranteed by a bank is exempt
from registration and prospectus requirements of Section
5 of the act, and the use of the proceeds from the sale
of such security need not be restricted to financing
current transactions in order to keep the exemption.
7Twenty-four companies do not issue paper them
selves, but serve merely as guarantors of affiliates’
paper. With this guarantee the affiliates’ paper obtains
a higher rating.
8The major exception is paper guaranteed by com
mercial banks, which often do not have any rated
long-term debt.
9Federal Trade Commission, Q u arterly Financial
R ep o rt fo r M anufacturing, M ining, and Trade C or
porations, 4th quarter, 1976.
10American Council of Life Insurance, M on th ly S ta
tistical S ervices R eport, Mar. 1977.
11The few money market banks that establish prime
rates by use of a formula base those rates on an average
of past and present commercial paper rates. The best
known of these, adopted by Citibank, currently sets the
prime rate at 125 basis points above the average rate
of 90-day commercial paper over the three previous
weeks.
12Atlantic Acceptance Corporation, a Canada-based
finance company, defaulted in 1965. In 1969, Mill
Factors Corporation, a long-established but smaller
commercial finance company with a “ desirable” rather
than “ prime” paper rating, defaulted on $7 million of
commercial paper.
13Monthly figures for this series may be found in the
Board’s A nnual S tatistical D igest, 1971-75, and in the
forthcoming D ig e st for 1972-76.
537
Changes in Time and Savings Deposits at
Commercial Banks, October 1976-January 1977
Results of the most recent survey of time and
savings deposits1 conducted jointly by the Fed
eral Reserve System and the Federal Deposit
Insurance Corporation indicate that growth in
total time and savings deposits at all insured
commercial banks accelerated moderately in the
3-month period from October 1976 to January
1977.2 It is estimated that total time and savings
deposits rose by $15 billion, or at a quarterly
rate of more than 3 per cent, not seasonally
adjusted. Savings deposits— which represent
about two-fifths of the outstanding time and
savings deposits— accounted for more than
four-fifths of the total increase. Inflows to
small-denomination (less than $100,000) time
deposits remained strong, but growth in total
time deposits— continuing the pattern that had
begun in early 1975— was slowed by further
declines in large-denomination ($100,000 and
over) time deposits.
S A V IN G S D E P O S IT S
Savings deposit inflows to commercial banks
maintained an extremely rapid pace throughout
N o t e . — John R. Williams and Rebekah F. Wright
of the Board’s Division of Research and Statistics
prepared this article.
P urveys of time and savings deposits (STSD) at all
member banks were conducted by the Board of Gover
nors in late 1965, in early 1966, and quarterly in 1967.
In January and July 1967 the surveys also included data
for all insured nonmember banks collected by the Fed
eral Deposit Insurance Corporation (FDIC). Since the
beginning of 1968 the Board of Governors and the FDIC
have jointly conducted quarterly surveys to provide
estimates for all insured commercial banks based on
a probability sample of banks. The results of all earlier
surveys have appeared in previous B u l l e t i n s from
1966 to 1976, the most recent being April 1977.
2The current sample— designed to provide estimates
of the composition of deposits— includes about 560
insured commercial banks. For details of the statistical
methodology, see “ Survey of Time and Savings D e
posits, July 1976” in the B u l l e t i n for December 1976.
the period from October to January as yields
on alternative market instruments, such as
Treasury bills, remained below the 5 per cent
ceiling rate on savings deposits. During the
3-month period growth of these deposits totaled
$12.2 billion, or 6.4 per cent at a quarterly rate,
not seasonally adjusted, compared with the 4.0
per cent rate registered in the previous 3-month
period.
Among the ownership classes, savings de
posits issued to domestic governmental units
and to businesses grew most rapidly, reflecting
continued adjustment by these entities to the
opportunity of converting other financial assets
(including demand balances) to savings deposits
coupled with their normal adjustment in portfo
lios induced by the low market yields. Domestic
governmental units, which had become eligible
to hold savings deposits in November 1974,
expanded their deposit balances by more than
50 per cent— about $2 billion, not seasonally
adjusted. Similarly, savings deposits of profitmaking organizations, permitted at banks since
November 1975, increased by about $1.5 billion
to a level of $9 billion. Meanwhile, individuals
and nonprofit organizations, whose share of all
savings balances still exceeds 90 per cent,
maintained rapid inflows by historical standards,
increasing their holdings at a quarterly rate of
nearly 5 per cent.
Despite the large inflows of savings deposits
and the low yields on alternative short-term
money market securities, the January survey
found only a modest decline in offering rates
paid on new issues of savings deposits. The rate
cutting that did occur was most prevalent o n .
deposits issued to domestic governmental units,
particularly at large banks. Among banks with
total deposits of $100 million and over, the
proportion paying the ceiling rate fell to 84 per
cent in January from 94 per cent in October.
By comparison, at smaller banks the proportion
538
1.
Federal Reserve B ulletin □ June 1977
Types of time and savings deposits held by insured commercial banks on survey dates,
July 28, 1976, October 27, 1976, and January 26, 1977
Deposits
Number of issuing banks
Type of deposit
In millions of dollars
Percentage change
July 28,
1976
Oct. 27,
1976
Jan. 26,
1977
July 28,
1976
Oct. 27,
1976
Jan. 26,
1977
Total time and savings deposits..........................
14,365
14,384
14,340
469,811
477,722
Savings..............................................................
Issued to :
Individuals and nonprofit organizations...
Partnerships and corporations operated for
profit (other than commercial banks).
Domestic governmental units.....................
All other.......................................................
14,332
14,384
14,340
183,946
191,386
14,332
14,384
14,337
174,349
7,958
6,183
1,046
8,120
6,047
742
8,461
6,882
698
14,058
14,080
10,592
10,401
4,865
7,412
4,168
7,773
Interest-bearing time deposits in denomina
tions of less than $100,000.......................
Issued to:
Domestic governmental units .......................
Accounts with original maturity of:
30 up to 90 days.......................................
90 up to 180 days.....................................
180 days up to 1 year...............................
1 year and over.........................................
Other than domestic governmental units . . . .
Accounts with original maturity of:
30 up to 90 days.......................................
90 up to 180 days....................................
180 days up to 1 year...............................
1 up to 2 % years.....................................
2 Vi up to 4 years.....................................
Interest-bearing time deposits in denomina
tions of $100,000 or more
Non-interest-bearing time deposits in deLess than $100,000.............................
Club accounts (Christmas savings, vacation,
or similar club accounts).........................
July 28Oct. 27
Oct. 27Jan. 26
492,645
1.7
3.1
203,572
4.0
6.4
179,702
188,299
3.1
4.8
6,210
3,248
139
7,550
3,880
254
9,004
5,947
322
21.6
19.5
82.9
19.3
53.3
26.9
14,036
145,173
152,427
159,616
5.0
4.7
10,627
4,422
4,145
4,349
-6 .3
4 .9
4,315
7,530
4,384
7,763
4,290
7,931
4,200
8,141
13,974
14,049
14,008
1,499
1,170
756
997
140,751
1,099
1,174
689
1,182
148,282
935
1,464
670
1,280
-2 6 .7
.4
- 8 .9
18.6
155,267
5 .4
- 1 4 .9
24.7
- 2 .8
8.3
6,153
11,574
8,697
13,195
12,056
11,762
7,992
6,337
11,525
8,938
13,547
12,191
11,758
8,133
5,653
11,064
8,618
13,587
12,082
11,929
8,433
7,855
27,064
4,854
33,008
18,690
41,372
7,909
7,246
30,086
4,375
34,054
18,426
44,785
9,310
7,082
31,510
4,605
34,403
18,011
48,566
11,091
- 7 .8
11.2
- 9 .9
3.2
- 1 .4
8.2
17.7
- 2 .3
4.7
5.2
1.0
- 2 .3
8.4
19.1
11,154
11,171
10,937
133,733
127,158
123,566
- 4 .9
- 2 .8
1,609
1,315
628
1,672
1,419
677
1,620
1,396
657
4,802
1,556
3,246
4,863
1,587
3,275
4,823
1,640
3,183
1.3
2.0
.9
- .8
3.3
- 2 .8
8,962
8,993
8,849
2,158
1,889
1,067
-1 2 .4
-4 3 .5
4 .7
N ote.—All banks that had either discontinued offering or never
offered certain deposit types as of the survey date are not counted as
issuing banks. However, small amounts of deposits held at banks that
had discontinued issuing certain deposit types are included in the
amounts outstanding.
Figures may not add to totals because of rounding.
fell from 86 to 82 per cent. At all banks the
average interest rate paid on savings held by
domestic governmental units, weighted by the
amount of deposits, declined to 4.90 per cent
from 4.97 per cent.
For savings accounts of businesses the
proportion of banks paying the ceiling rate also
declined appreciably, but it remained above 90
per cent. In contrast, survey data indicated that
the proportion of banks paying the legal limit
on savings to individuals and nonprofit organi
zations declined only 1 percentage point to 84
per cent. But because the reductions were con
centrated among large banks, the proportion of
balances at banks paying the ceiling fell some
what more—by IVi percentage points, also to
84 per cent. For all savings deposits, the
weighted-average rate was essentially un
changed at 4.90 per cent.
SM ALL-DENOM INATION
TIME DEPOSITS
Holdings of interest-bearing, small-denomi
nation time deposits expanded sharply in the
October to January period, continuing the strong
growth of such deposits in the previous 3-month
period. Unlike the July to October period—
when governmental units had reduced their
holdings of small-denomination time depos
its— both governmental and nongovernmental
units increased such balances at a quarterly rate
of nearly 5 per cent. In each ownership category
growth was most rapid in the long maturity
deposit classes, on which legal maximum rates
set by Regulation Q are highest;3 growth in
nongovernmental time deposits maturing in 4
3Of course, on issues to governmental units banks
are currently permitted to pay interest of 7.75 per cent
on all time deposits without regard to maturity.
539
Changes in Time and Savings Deposits
2.
Small-denomination time and savings deposits held by insured commercial banks on
October 27, 1976, and January 26, 1977, by type o f deposit, by most common rate paid
on new deposits in each category, and by size o f bank
All banks
Deposit group, and dis
tribution of deposits by
most common rate
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 26
Oct. 27
Jan. 26
Oct. 27
100 and over
Jan. 26
Oct. 27
Number of banks, or percentage distribution
Savings deposits
Individuals and non
profit organizations
Issuing banks............ 14,337
Distribution, to tal. . .
100
4.00 or less............
4.8
4.01-4.50...............
11.1
4.51-5.00...............
84.2
Paying ceiling ra te '...
83.9
All banks
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 26
Oct. 27
Jan. 26
Oct. 27
100 and over
Jan. 26
Oct. 27
Amount of deposits (in millions of dollars),
or percentage distribution
14,384
100
4.7
10.4
84.9
84.7
13,425
100
4.6
11.1
84.2
84.0
13,466
100
4.6
10.6
84.8
84.6
912
100
6.8
9.9
83.4
82.5
918 188,299 179,702
100
100
100
6.3
3.9
4.0
7.2
11.4
9.6
86.5
84.7
86.4
86.4
83.7
86.2
72,029
100
3.5
9.6
87.0
86.8
69,473 116,270 110,230
100
100
100
3.6
4.2
4.3
10.1
12.6
9.3
86.3
83.2
86.5
81.8
86.1
86.3
Partnerships and cor
porations
Issuing banks............
Distribution, to tal. . .
4.00 or less............
4.01-4.50...............
4.51-5.00...............
Paying ceiling ra te 1...
8,461
100
1.6
7.7
90.7
90.3
8,120
100
1.7
5.7
92.6
92.3
7,561
100
1.5
7.5
91.0
90.6
7,222
100
1.6
5.7
92.6
92.3
900
100
2.2
9.3
88.5
87.5
898
100
2.2
5.2
92.5
92.4
9,004
100
1.4
8.7
89.9
88.0
7,550
100
1.6
4.3
94.0
93.6
2,694
100
1.3
5.3
93.4
93.4
2,267
100
2.2
6.2
91.6
91.5
6,310
100
1.5
10.1
88.4
85.7
5,283
100
1.4
3.5
95.1
94.5
Domestic governmental
units
Issuing banks............
Distribution, total. . .
4.00 or less............
4.01-4.50...............
4.51-5.00...............
Paying ceiling ra te 1. ..
6,882
100
5,1
12.5
82.5
82.0
6,047
100
2,9
8.5
88.7
86.8
6,313
100
5,3
12.5
82.3
81.8
5,507
100
3,0
8.9
88.1
86.1
569
100
2,5
12.4
85.1
84.1
540
100
1,9
3.9
94.2
93.8
5,947
100
1,1
16.0
83.0
81.4
3,880
100
1,2
4.2
94.6
94.2
2,265
100
1,2
12.7
86.2
86.1
1,661
100
1,0
7.6
91.4
91.0
3,682
100
1,0
18.0
81.0
78.5
2,219
100
1,3
1.6
97.0
96.5
Paying ceiling ra te 1. ..
698
100
12.4
(2)
87.6
87.6
742
100
.3
.3
99.4
99.4
619
100
13.6
(2)
86.4
86.4
668
100
(2)
(2)
100.0
100.0
79
100
3.2
(2)
96.8
96.8
73
100
3.4
2.8
93.8
93.8
322
100
.5
(2)
99.5
99.5
254
100
.3
(2)
99.7
99.7
28
100
2.5
(2)
97.5
97.5
178
100
(2)
(2)
100.0
100.0
294
100
.4
(2)
99.6
99.6
76
100
.9
(2)
99.1
99.1
Time deposits in denomina
tions of less than
$100,000
Domestic governmental
units:
Maturing in—
30 up to 90 days
Issuing banks............
Distribution, to tal. . .
4.50 or less............
4.51-5.00................
5.01-5.50...............
5.51-7.75...............
Paying ceiling ra te 1...
4,290
100
6.5
74.6
14.5
4.5
(2)
4,315
100
1.7
73.6
19.7
5.1
(2)
3,655
100
4.6
75.3
15.4
4.8
(2)
3,702
100
1.7
72.2
20.6
5.5
(2)
635
100
17.5
70.5
9.3
2.7
(2)
613
100
1.6
81.6
14.3
2.5
(2)
935
100
13.2
61.7
17.5
7.6
(2)
1,099
100
1.3
66.6
28.2
3.9
(2)
580
100
4.7
73.6
11.7
10.0
(2)
490
100
.9
75.2
15.2
8.6
( 2)
356
100
27.1
42.4
27.0
3.6
(2)
609
100
1.6
59.7
38.6
.1
(2)
7,931
100
5.1
14.6
74.7
5.6
(2)
7,530
100
.8
8.6
81.1
9.5
.4
7,250
100
5.1
13.6
75.4
6.0
(2)
6,892
100
.8
8.2
80.9
10.1
.5
681
100
5.0
25.8
67.9
1.2
( 2)
638
100
(2)
13.4
83.6
2.9
(2)
1,464
100
3.3
15.2
76.6
4.9
(2)
1,174
100
.5
10.7
81.9
6.9
.2
941
100
3.7
10.4
78.9
7.0
(2)
780
100
.8
10.3
82.6
6.3
.3
523
100
2.5
23.9
72.4
1.2
(2)
394
100
( 2)
11.4
80.5
8.1
(2)
4.200
100
5.1
9.2
66.3
19.5
(2)
4.384
100
( 2)
8.3
69.9
21.8
.8
3.685
100
5.2
7.1
66.6
21.1
(2)
3.884
100
(2)
8.5
69.2
22.3
.9
515
100
3.9
24.3
64.2
7.7
(2)
500
100
(2)
6.9
75.6
17.5
(2)
670
100
7.3
13.7
61.2
17.9
(2)
689
100
(2)
8.6
69.2
22.2
.1
410
100
4.1
1.9
67.2
26.7
(2)
430
100
(2)
4.8
64.1
31.2
.1
260
100
12.2
32.2
51.6
4.0
(2)
259
100
(2)
15.0
77.6
7.4
( 2)
8,141
100
5.1
4.6
67.9
22.4
(2)
7,763
100
2.8
5.5
66.2
25.5
.4
7,518
100
4.7
3.4
69.1
22.8
(2)
7,159
100
2.7
5.0
66.6
25.7
.5
623
100
10.3
19.6
52.9
17.2
.4
605
100
4.3
11.2
62.0
22.5
(2)
1,276
100
2.9
12.7
69.0
15.4
(2)
1,181
100
.5
4.3
63.4
31.9
.1
1,048
100
2.2
4.4
76.3
17.1
(2)
989
100
.3
3.9
60.1
35.6
.1
228
100
6.1
51.2
35.2
7.5
.2
192
100
1.3
6.2
79.9
12.7
(2)
All other
Issuing banks............
Distribution, to tal. . .
4.00 or less............
4.01-4.50...............
4.51-5.00...............
90 up to 180 days
Issuing banks............
Distribution, to tal. . .
4.50 or less............
4.51-5.00...............
5.01-5.50...............
5.51-7.75...............
Paying ceiling ra te 1...
180 days up to 1 year
Issuing banks............
Distribution, to tal. . .
4.50 or less............
4.51-5.00...............
5.01-5.50...............
5.51-7.75...............
Paying ceiling ra te 1...
1 year and over
Issuing banks............
Distribution, to tal. . .
5.00 or less............
5.01-5.50...............
5.51-6.00...............
6.01-7.75...............
Paying ceiling ra te 1. ..
540
Federal Reserve B ulletin □ June 1977
TABLE 2—Continued
Deposit group, and dis
tribution of deposits by
most common rate
All banks
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 26
Oct. 27
Jan. 26
Oct. 27
All banks
100 and over
Jan. 26
Oct. 27
Number of banks, or percentage distribution
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 26
Oct. 27
Jan. 26 J Oct. 27
100 and over
Jan. 26
Oct. 27
Amount of deposits (in millions of dollars),
or percentage distribution
Time deposits in denomina
tions of less than
$100,000 (cont.)
Other than domestic
governmental units:
Maturing in—
30 up to 90 days
Issuing banks............
Distribution, to tal. . .
4.50 or less............
4.51-5.00................
5,653
100
4.1
95.9
92.8
6,337
100
.2
99.8
94.2
4,852
100
2.9
97.1
95.3
5,543
100
(2)
100.0
94.4
801
100
11.6
88.4
78.3
794
100
1.4
98.6
92.8
7,056
100
17.5
82.5
76.2
7,245
100
1.2
98.8
92.0
1,390
100
9.5
90.5
86.6
1,926
100
(2)
100.0
93.4
5,666
100
19.5
80.5
73.7
5,320
100
1.6
98.4
91.5
90 up to 180 days
Issuing banks............ 11,064
Distribution, to tal. . . 100
4.50 or less............
1.0
4.51-5.00...............
10.5
5.01-5.50...............
88.6
Paying ceiling ra te 1...
88.3
11,525
100
.5
12.7
86.8
86.1
10,169
100
.9
10.3
88.8
88.8
10,623
100
.5
13.3
86.1
85.6
894
100
1.9
12.4
85.7
82.3
902
100
( 2)
5.3
94.7
92.0
31,445
100
.2
16.4
83.4
80.8
30,086
100
(2)
6.0
94.0
92.8
13,003
100
(2)
9.8
90.2
90.2
12,626
100
(2)
7.3
92.6
92.6
18,442
100
.4
21.1
78.6
74.2
17,460
100
(2)
5.0
95.0
92.9
8,618
100
.6
8.7
90.7
89.4
8,938
100
.4
5.4
94.2
91.6
7,831
100
.4
8.2
91.4
90.7
8,147
100
.3
5.5
94.2
91.6
788
100
3.0
13.3
83.7
76.3
791
100
.4
4.6
95.0
91.4
4,564
100
.2
9.9
89.9
84.8
4,338
100
.1
2.2
97.6
91.0
2,609
100
(2)
4.2
95.8
95.8
2,653
100
(2)
2.7
97.3
93.8
1,956
100
.5
17.5
82.0
70.3
1,685
100
.3
1.5
98.2
86.6
1 up to 2 Vi years
Issuing banks............ 13,587
Distribution, to tal. . . 100
.4
5.00 or less............
5.01-5.50...............
2.8
5,51-6.00...............
96.8
Paying ceiling ra te 1...
94.5
13,547
100
(2)
1.8
98.2
96.3
12,685
100
.4
2.5
97.1
95.1
12,644
100
(2)
1.8
98.2
96.3
903
100
.9
7.0
92.1
86.4
903
100
.2
1.2
98.6
96.2
34,402
100
1.7
2.9
95.5
89.4
34,054
100
(2)
1.3
98.7
96.6
21,981
100
.3
2.1
97.6
96.4
22,175
100
(2)
1.8
98.2
97.3
12,420
100
4.1
4.2
91.7
77.0
11,880
100
(2)
.5
99.5
95.1
12,082
100
2.6
97.4
97.2
12,191
100
1.8
98.2
97.1
11,205
100
1.9
98.1
98.1
11,311
100
1.9
98.1
97.0
877
100
10.7
89.3
85.7
880
100
.9
99.1
98.4
17,930
100
5.8
94.2
93.1
18,402
100
1.6
98.4
96.6
10,746
100
1.9
98.1
98.1
11,283
100
1.4
98.6
97.0
7,184
100
11.6
88.4
85.6
7,120
100
1.8
98.2
95.8
4 up to 6 years
Issuing banks............ 11,929
Distribution, to tal. . . 100
6.50 or less............
2.2
6.51-7.00...............
17.4
80.4
7.01-7.25...............
80.1
Paying ceiling ra te 1. ..
11,758
100
.9
14.8
84.3
84.3
11,058
100
1.2
17.6
81.2
81.0
10,886
100
.8
15.5
83.7
83.7
871
100
15.0
15.3
69.7
69.2
871
100
1.9
6.7
91.4
91.4
48,109
100
6.7
15.1
78.1
78.0
44,362
100
1.8
9.8
88.4
88.4
24,763
100
1.0
16.0
83.0
82.9
22,349
100
.6
13.0
86.4
86.4
23,346
100
12.8
14.2
73.0
72.8
22,013
100
3.0
6.6
90.4
90.4
Paying ceiling ra te 1. ..
8,433
100
.1
8.3
91.6
91.6
8,133
100
(2)
4.8
95.2
95.2
7,673
100
(2)
7.2
92.8
92.8
7,379
100
(2)
4.8
95.2
95.2
760
100
.9
19.4
79.7
79.7
754
100
(2)
4.9
95.1
95.1
10,933
100
.1
14.5
85.4
85.4
9,175
100
(2)
6.8
93.2
93.2
4,737
100
(2)
3.7
96.3
96.3
4,020
100
(2)
3.9
96.1
96.1
6,196
100
.2
22.7
77.1
77.1
5,155
100
(2)
9.1
90.9
90.9
Club accounts
Issuing banks............
Distribution, total. . .
0.00........................
0.01-4.00...............
4.01-4.50...............
4.51-5.50...............
8,849
100
49.5
12.1
6.8
31.6
8,993
100
55.3
13.6
7.3
23.8
8,172
100
51.3
11.9
6.6
30.2
8,358
100
57.4
13.5
7.1
22.0
676
100
28.1
13.9
9.6
48.4
634
100
27.5
15.3
10.3
46.9
1,033
100
13.3
10.2
9.8
66.7
1,839
100
22.9
11.0
10.9
55.3
644
100
13.0
8.3
5.8
73.0
914
100
31.8
11.9
6.4
49.8
389
100
13.8
13.3
16.5
56.4
925
100
14.0
10.2
15.2
60.7
Paying ceiling ra te 1. ..
180 days up to 1 year
Issuing banks............
Distribution, to tal. . .
4.50 or less............
4.51-5.00...............
5.01-5.50...............
Paying ceiling ra te 1...
2Vi up to 4 years
Distribution, to tal. . .
6.00 or less............
6.01-6.50...............
Paying ceiling ra te 1...
6 years and over
Issuing banks............
Distribution, to tal. . .
5.00 or less............
5.01-7.25...............
7.26-7.50...............
1 See p. A-10 for maximum interest rates payable on time and
savings deposits at the time of each survey. The ceiling rate is included
in the rate interval in the line above.
2 Less than .05 per cent.
N o t e . —All banks that either had discontinued offering or had
never offered particular deposit types as of the survey date are not
counted as issuing banks. Moreover, the small amounts of deposits
held at banks that had discontinued issuing deposits are not included
in the amounts outstanding. Therefore, the deposit amounts shown
in Table 1 may exceed the deposit amounts shown in this table.
The most common interest rate for each instrument refers to the
stated rate per annum (before compounding) that banks paid on the
largest dollar volume of deposit inflows during the 2-week period
immediately preceding the survey date.
Figures may not add to totals because of rounding.
Changes in Time and Savings Deposits
years or more accounted for nearly 80 per cent
of the total expansion in small-denomination
time deposits. Deposits maturing in 90 up to
180 days also increased in both ownership
classes, perhaps as some customers acquired
temporary investments in anticipation of rising
market rates.
Although average rates paid by banks de
3.
541
clined for all maturity categories of small-de
nomination time deposits between October and
January, the general lengthening of the maturity
structure offset to some extent the impact of the
declines on the total weighted-average interest
cost of these deposits. The weighted-average
rate paid on new time deposits issued to domes
tic governmental units fell 9 basis points to 5.49
Average of most common interest rates paid on various categories o f time and savings
deposits at insured commercial banks on October 27, 1976, and January 26, 1977
Bank size
(total deposits in millions of dollars)
Type of deposit
All size
groups
Less
than 20
20 up
to 50
50 up
to 100
100 up
to 500
500 up
to 1,000
1,000
and over
January 26, 1977
Savings and small-denomination time deposits.....................
5.51
5.72
5.67
5.60
5.46
5.37
5.33
Savings, total............................................................................
Individuals and nonprofit organizations............................
Partnerships and corporations............................................
Domestic governmental units............................................
All other...............................................................................
4.90
4.90
4.94
4.90
4.98
4.94
4.94
4.99
4.93
4.84
4.89
4.88
4.94
4.98
5.00
4.94
4.94
4.97
4.85
5.00
4.90
4.89
4.93
4.94
4.98
4.82
4.82
4.90
4.91
4.91
4.91
4.93
4.85
5.00
Time deposits in denominations of less than $100,000, to ta l..
Domestic governmental units, total...................................
Maturing in—
30 up to 90 days...............................................................
90 up to 180 days.............................................................
180 days up to 1 year......................................................
1 year and over................................................................
6.28
5.49
6.28
5.61
6.44
5.65
6.38
5.44
6.25
5.34
6.22
5.12
6.12
5.11
5.05
5.37
5.37
6.01
5.22
5.44
5.38
6.05
4.98
5.36
5.62
6.13
4.94
5.42
5.34
6.10
5.12
5.41
5.12
5.74
4.85
5.13
5.26
5.64
4.77
5.15
5.14
5.66
Other than domestic governmental units, total.................
Maturing in—
30 up to 90 days..............................................................
90 up to 180 days.............................................................
180 days up to 1 year......................................................
1 up to 2Vi years..............................................................
2Vi up to 4 years..............................................................
4 up to 6 years.................................................................
Over 6 years.....................................................................
6.30
6.32
6.46
6.39
6.28
6.23
6.13
4.88
5.40
5.43
5.95
6.46
7.13
7.41
4.89
5.47
5.48
5.99
6.49
7.19
7.49
5.00
5.46
5.49
5.99
6.49
7.17
7.50
4.92
5.41
5.48
5.95
6.46
7.22
7.48
4.95
5.45
5.44
5.97
6.42
7.07
7.36
4.90
5.37
5.39
5.87
6.39
7.10
7.41
4.81
5.27
5.29
5.84
6.43
7.06
7.29
M emo : Club accounts1...........................................................
4.20
2.71
4.30
4.75
3.91
3.72
4.29
..
October 27, 1976
Savings and small-denomination time deposits....................
5.54
5.71
5.66
5.58
5.49
5.42
5.39
Savings, to tal...........................................................................
Individuals and nonprofit organizations............................
Partnerships and corporations............................................
Domestic governmental units.............................................
All other...............................................................................
4.91
4.91
4.96
4.97
4.99
4.93
4.93
5.00
4.96
5.00
4.88
4.88
4.90
4.98
5.00
4.94
4.93
4.97
4.90
5.00
4.91
4.91
4.96
4.98
4.86 ..
4.86
4.85
4.96
5.00
4.93
4.93
4.98
4.97
5.00
Time deposits in denominations of less than $100,000, total..
Domestic governmental units, total...................................
Maturing in—
30 up to 90 days..............................................................
90 up to 180 days.............................................................
180 days up to 1 year......................................................
1 year and over............................................................
6.32
5.58
6.24
5.75
6.43
5.67
6.36
5.55
6.33
5.35
6.29
5.39
6.25
5.35
5.13
5.44
5.53
6.17
5.35
5.46
5.59
6.24
5.03
5.48
5.60
6.06
4.99
5.23
5.59
6.36
5.10
5.46
5.41
6.05
5.13
5.42
5.59
5.98
4.99
5.41
5.35
5.92
Other than domestic governmental units, total.................
Maturing in—
30 up to 90 days...............................................................
90 up to 180 days............................................................
180 days up to 1 year......................................................
1 up to 2Vi years..............................................................
2Vi up to 4 years.............................................................
4 up to 6 years.................................................................
Over 6 years.....................................................................
6.34
6.27
6.45
6.38
6.36
6.30
6.27
4.98
5.47
5.47
5.99
6.49
7.21
7.47
5.00
5.47
5.48
5.98
6.48
7.22
7.49
4.99
5.48
5.50
6.00
6.50
7.19
7.50
4.98
5.44
5.47
5.98
6.48
7.24
7.48
4.99
5.49
5.49
5.99
6.49
7.21
7.48
4.95
5.47
5.47
5.98
6.45
7.23
7.46
4.98
5.45
5.43
5.98
6.49
7.19
7.43
Club accounts1...........................................................
3.68
2.11
2.17
4.53
3.74
3.70
4.52
M em o:
1 Club accounts are excluded from all of the above categories.
N o t e . —The
average rates were calculated by weighting the most
common rate reported on each type of deposit at each bank by the
amount of that type of deposit outstanding. All banks that had either
discontinued offering or never offered particular deposit types as of the
survey date were excluded from the calculations for those specific
deposit types.
542
Federal Reserve B ulletin □ June 1977
OTHER TIME DEPOSITS
per cent, while the average rate on such deposits
issued to nongovernmental entities declined 4
basis points to 6.30 per cent. Like savings
deposits, rate cutting on time deposits was con
centrated primarily among large banks. For
issues to nongovernmental holders in all original
maturity categories under 2% years, the propor
tion of large banks paying maximum allowable
rates fell 10 or more percentage points, but at
small banks the proportions were about un
changed. The proportion of large banks paying
the ceiling rate on time deposits maturing in 4
up to 6 years was 69 per cent in January, down
from 91 per cent in October, but at other banks
the percentage declined only to 81 per cent from
84 per cent. In the 6-year-and-over maturity
category the proportion of banks offering maxi
mum rates, which had been 95 per cent at all
banks in October, fell to 80 per cent at large
banks but only to 93 per cent at other banks.
Banks continued to allow interest-bearing,
large-denomination time deposits to run off
during the October to January interval. How
ever, the decline in such deposits was less than
in the previous 3 months, and the reduction may
have reflected the fact that business demands
for credit began to show a general rise late in
1976. Since the end of 1974 the total volume
of large-denomination deposits has declined by
more than $40 billion, to a level of $124 billion.
Remaining time deposits are distributed be
tween non-interest-bearing time deposits and
club accounts. Such non-interest-bearing de
posits, most of which are likely to be escrow
accounts or compensating balances held against
loans, declined slightly to a level of $4.8 billion;
club account deposits declined seasonally to a
level of $1.1 billion.
□
R evised data fo r the appendix tables for the O ctober survey are available on request from Publications
Services, D ivision of A dm inistrative S ervices , B oard of G overnors of the Federal R eserve System ,
W ashington , D .C . 20551.
A P P E N D IX T A B L E S
A l.
Savings deposits issued to individuals and nonprofit organizations
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.00
or
less
4.01
to
4.50
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
All banks............................................................
14,337
681
1,587
12,070
Size of bank (total deposits in millions of
dollars):
Less than 20..................................................
20-50..............................................................
50-100............................................................
100-500..........................................................
500-1,000.......................................................
1,000 and over...............................................
8,862
3,477
1,086
725
103
84
498
66
55
50
8
4
963
495
39
56
23
12
7,402
2,916
992
620
73
68
4.00
or
less
4.01
to
4.50
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
MILLIONS OF DOLLARS
12,034 188,299
7,373
2,916
992
617
70
66
20,256
30,279
21,494
40,063
19,087
57,120
7,369
497
967
1,023
2,324
1,413
1,146
21,486 159,444 157,578
1,303
4,935
652
3,502
4,008
7,086
18,456
24,376
19,819
34,238
13,666
48,888
18,295
24,376
19,819
34,127
13,432
47,528
NOTES TO APPENDIX TABLES 1-16:
1 See page A10 for maximum interest rates payable on time and
saving deposits at the time of each survey. The ceiling rate is the top
of the rate interval immediately to the left.
2 Omitted to avoid individual bank disclosure.
3 Less than $500,000.
N o t e . — All banks that either had discontinued offering or had
never offered particular deposit types as of the survey date are not
counted as issuing banks. Moreover, the small amounts of deposits
held at banks that had discontinued issuing deposits are not included
in the amounts outstanding. Therefore, the deposit amounts shown
in Table 1 may exceed the deposit amounts shown in these tables.
The most common interest rate for each instrument refers to the
stated rate per annum (before compounding) that banks paid on the
largest dollar volume of deposit inflows during the 2 week period
immediately preceding the survey date.
Figures may not add to totals because of rounding.
Changes in Time and Savings Deposits
A2.
543
Savings deposits issued to partnerships and corporations operated for profit
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.00
or
less
4.01
to
4.50
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
4.00
or
less
4.01
to
4.50
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
MILLIONS OF DOLLARS
All banks............................................................
8,461
135
648
7,678
7,641
9,004
130
781
8,093
7,923
Size of bank (total deposits in millions of
dollars):
Less than 20...................................................
20-50..............................................................
50-100............................................................
100-500..........................................................
500-1,000........................................................
1,000 and over...............................................
3,657
2,866
1,038
713
103
84
100
16
17
2
1
114
395
55
47
23
14
3,543
2,371
967
649
78
69
3,515
2,371
967
647
75
66
512
1,155
1,027
2,081
1,107
3,122
28
7
60
(2)
(2)
7
90
45
149
( 2)
(2)
505
1,037
975
1,873
918
2,786
503
1,037
975
1,864
874
2,670
A3.
Savings deposits issued to domestic governmental units
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.01
to
4.50
4.00
or
less
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
Most common rate
(per cent)
Total
4.00
or
less
4.01
to
4.50
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
MILLIONS OF DOLLARS
NUMBER OF BANKS
All banks............................................................
6,882
348
858
5,677
5,643
5,947
63
950
4,934
4,842
Size of bank (total deposits in millions of
dollars):
Less than 20..................................................
20-50..............................................................
50-100
......................................................
100-500..........................................................
500-1,000........................................................
1,000 and over...............................................
4,141
1,642
530
433
75
62
300
33
412
336
39
41
14
15
3,429
1,272
491
382
59
44
3,401
1,272
491
382
53
44
699
901
665
1,272
534
1,876
19
7
57
31
200
139
(2)
(2)
624
864
465
1,131
476
1,374
622
864
465
1,131
386
1,374
A4.
9
2
3
2
(2)
(2)
Savings deposits issued to all others
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.01
to
4.50
4.00
or
less
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
4.00
or
less
4.01
to
4.50
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
MILLIONS OF DOLLARS
All banks............................................................
698
87
612
612
322
2
320
320
Size of bank (total deposits in millions of
dollars):
Less than 20..................................................
20-50..............................................................
50-100............................................................
100-500..........................................................
500-1,000.......................................................
1,000 and over...............................................
277
303
39
64
2
13
84
193
303
39
62
2
13
193
303
39
62
2
13
11
2
15
181
(2)
(2)
1
10
2
15
180
(2)
(2)
10
2
15
180
(2)
(2)
For notes, see p. 542.
3
1
544
A5.
Federal Reserve B ulletin □ June 1977
Government time deposits in denominations of less than $100,000—
Maturities of 30 up to 90 days
Most common interest rates paid by insured commercial banks on new deposits, January 26,1977
Most common rate
(per cent)
Group
Total
5.00
or
less
5.01
to
5.50
5.51
to
7.75
Paying
ceiling
rate 1
(7.75
per
cent)
Most common rate
(per cent)
Total
5.00
or
less
NUMBER OF BANKS
5.01
to
5.50
5.51
to
7.75
Paying
ceiling
rate 1
(7.75
per
cent)
MILLIONS OF DOLLARS
All banks..................................................
4,290
3,477
622
191
935
701
164
Size of bank (total deposits in millions of
dollars):
Less than 20.........................................
20-50....................................................
50-100..................................................
100-500................................................
500-1,000..............................................
1,000 and over.....................................
2,238
1,034
384
485
87
63
1,573
977
368
430
73
57
524
23
16 .
41
12
6 .
141
33
337
127
116
175
85
95
215
124
115
91
65
A6.
66
90
2
1
71
(2
)
(2
)
71
(2
)
(2
)
Government time deposits in denominations o f less than $100,000—
Maturities o f 90 up to 180 days
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
5.00
or
less
5.01
to
5.50
Paying
ceiling
rate 1
(7.75
per
cent)
5.51
to
7.75
Most common rate
(per cent)
Total
NUMBER OF BANKS
5.00
or
less
5.01
to
5.50
5.51
to
7.75
MILLIONS OF DOLLARS
All banks..................................................
7,931
1,560
5,926
445
1,464
271
1,121
Size of bank (total deposits in millions of
dollars):
Less than 20.........................................
20-50....................................................
50-100..................................................
100-500................................................
500-1,000..............................................
1,000 and over.....................................
4,715
2,129
405
530
88
63
667
628
55
126
47
38
3,801
1,328
335
399
39
24
248
173
16
5
2
1
582
252
107
285
47
192
52
73
473
170
99
245
A7.
Paying
ceiling
rate 1
(7.75
per
cent)
8
34
18
86
72
56
9
(3
)
6
(2)
(2
)
(2
)
(2
)
Government time deposits in denominations of less than $100,000—
Maturities of 180 days up to 1 year
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
5.00
or
less
5.01
to
5.50
Paying
ceiling
rate 1
(7.75
per
cent)
5.51
to
7.75
Most common rate
(per cent)
Total
NUMBER OF BANKS
5.00
or
less
5.01
to
5.50
5.51
to
7.75
MILLIONS OF DOLLARS
All banks..................................................
4,200
598
2,785
818 .
670
140
410
120
Size of bank (total deposits in millions of
dollars):
Less than 20.........................................
20-50....................................................
50-100..................................................
100-500................................................
500-1,000.............................................
1,000 and over.....................................
2,159
1,238
288
380
79
57
414
1,361
906
187
263
39
28
384
332
62
29
6
4
161
236
13
182
31
47
21
131
137
8
105
10
19
10
99
1
2
8
(3)
For notes, see p. 542.
39
87
33
25
.
.
.
.
.
4
76
13
27
Paying
ceiling
rate 1
(7.75
per
cent)
Changes in Time and Savings Deposits
A8.
545
Government time deposits in denominations of less than $100,000—
Maturities of 1 year or more
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate (per cent)
Total
Group
5.00
or
less
5.01
to
5.50
5.51
to
6.00
6.01
to
7.75
Paying
ceiling
rate 1
(7.75
per
cent)
Most common rate (per cent)
Total
NUMBER OF BANKS
All banks...........................
8,141
415
376
5,526
1,824
4,499
2,440
579
490
78
55
278
33
39
46
11
7
221
33
2,779
2,027
391
283
25
22
1,221
347
149
92
6
9
A9.
5.01
to
5.50
5.51
to
6.00
6.01
to
7.75
MILLIONS OF DOLLARS
Size oi bank (total deposits
in millions of dollars):
Less than 20..................
20-50.............................
50-100...........................
100-500.........................
500-1,000.......................
1,000 and over..............
69
36
17
5.00
or
less
Paying
ceiling
rate 1
(7.75
per
cent)
3
1,276
37
163
880
196
18
1
4
5
3
6
46
(3)
3
614
341
93
152
35
41
455
271
74
53
12
16
95
69
15
10
3
4
84
17
15
( 3)
( 3)
Other time deposits in denominations of less than $100,000—
Maturities of 30 up to 90 days
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.50
or
less
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
Most common rate
(per cent)
Total
4.50
or
less
NUMBER OF BANKS
4.51
to
5.00
Paying
ceiling
rate 1
(5.00
per
cent)
MILLIONS OF DOLLARS
All banks..............................................................
5,653
234
5,419
5,249
7,056
1,236
5,820
5,378
Size of bank (total deposits in millions of
dollars):
Less than 2 0 .....................................................
20-50.................................................................
50-100...............................................................
100-500.............................................................
500-1,000..........................................................
1,000 and over..................................................
2,341
1,786
725
626
98
77
85
33
23
52
24
17
2,256
1,752
702
575
74
60
2,199
1,752
670
523
58
46
202
359
829
1,591
1,500
2,575
20
1
111
153
190
761
182
358
717
1,438
1,310
1,814
178
358
667
1,399
1,208
1,569
A 10.
Other time deposits in denominations of less than $100,0 0 0 Maturities o f 90 up to 180 days
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.50
or
less
4.51
to
5.00
5.01
to
5.50
Paying
ceiling
rate 1
(5.50
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
11,064
107
1,157
9,800
9,769
31,445
Size of bank (total deposits in millions of
dollars):
Less than 20..................................................
20-50..............................................................
50-100............................................................
100-500..........................................................
500-1,000........................................................
1 000 and over...............................................
6,322
2,856
992
711
100
84
57
33
469
420
156
67
23
21
5,796
2,402
836
639
67
61
5,796
2,402
836
621
62
54
3,949
5,056
3,999
7,813
2,747
7,882
For notes, see p. 542.
4.51
to
5.00
5.01
to
5.50
MILLIONS OF DOLLARS
All banks............................................................
4
10
2
4.50
or
less
Paying
ceiling
rate 1
(5.50
per
cent)
66
( 3)
( 3)
(2)
20
(2)
5,162
26,217
25,418
225
382
669
(2)
516
(2)
3,723
4,674
3,330
7,119
2,212
5,159
3,723
4,674
3,330
7,064
2,034
4,593
546
Federal Reserve B ulletin □ June 1977
A ll.
Other time deposits in denominations of less than $100,000—
Maturities of 180 days up to 1 year
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
4.51
to
5.00
4.50
or
less
5.01
to
5.50
Paying
ceiling
rate 1
(5.50
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
4.50
or
less
8,618
52
749
7,818
7,704
4,736
2,330
765
611
98
79
28
527
69
48
70
14
20
4,181
2,261
717
525
77
57
4,181
2,228
694
491
65
45
11
4,564
Size of bank (total deposits in millions of
dollars):
Less than 20.........................................
20-50....................................................
50-100..................................................
100-500.................................................
500-1,000..............................................
1,000 and over.....................................
1,474
558
577
689
398
869
A12.
5.01
to
5.50
MILLIONS OF DOLLARS
All banks..................................................
15
7
2
4.51
to
5.00
Paying
ceiling
rate 1
(5.50
per
cent)
451
3,873
68
(3
)
4,103
1,406
544
550
616
357
631
1,406
543
550
601
325
448
14
27
69
(2
)
(2
)
(2)
(2
)
Other time deposits in denominations o f less than $100,000—
Maturities o f 1 up to ly-i years
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
5.00
or
less
5.01
to
5.50
5.51
to
6.00
Paying
ceiling
rate 1
(6.00
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
All banks..................................................
13,587
Size of bank (total deposits in millions of
dollars):
Less than 20.........................................
20-50......................................................
50-100....................................................
100-500................................................
500-1000................................................
1,000 and over.....................................
A13.
100
84
13,152
12,840
34,402
221
23
71
42
12
9
8,168
3,454
1,063
719
5.01
to
5.50
5.51
to
6.00
MILLIONS OF DOLLARS
378
57
5.00
or
less
Paying
ceiling
rate *
(6.00
per
cent)
7,947
3,398
976
677
84
71
7,726
3,375
960
636
79
65
10,400
7,960
3,622
4,988
1,879
5,554
982
10
56
122
389
32,843
30,762
183
53
222
219
138
168
576
10,217
7,897
3,344
4,769
1,619
4,997
9,973
7,879
3,342
4,532
1,450
3,584
Other time deposits in denominations of less than $100,000—
Maturities o f ly -i up to 4 years
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
6.00
or
less
6.01
to
6.50
Paying
ceiling
rate 1
(6.50
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
All banks..............................................................
Size of bank (total deposits in millions of
dollars):
Less than 20.....................................................
20-50................................................................
50-100..............................................................
100-500............................................................
500-1,000..........................................................
For notes, see p. 542.
6.00
or
less
6.01
to
6.50
Paying
ceiling
rate 1
(6.50
per
cent)
MILLIONS OF DOLLARS
12,082
310
11,772
11,740
17,930
1,042
16,888
16,690
6,798
3,431
976
701
96
80
113
56
46
67
19
9
6,685
3,375
930
634
77
71
6,685
3,375
930
608
73
70
3,855
4,726
2,165
2,778
1,079
3,327
60
51
96
426
158
250
3,795
4,675
2,069
2,352
921
3,077
3,795
4,675
2,069
2,297
833
3,022
Changes in Time and Savings Deposits
A 14.
547
Other time deposits in denominations of less than $100,000—
Maturities of 4 up to 6 years
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Group
Total
6.50
or
less
6.51
to
7.00
7.01
to
7.25
Paying
ceiling
rate 1
(7.25
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
All banks............................................................
Size of bank (total deposits in millions of
dollars):
Less than 20...................................................
20-50..............................................................
50-100............................................................
100-500..........................................................
500-1,000.......................................................
1,000 and over..............................................
A 15.
11,929
262
6,980
85
3,103
46
976
693 ’ **ioT*
98
12
11
80
6.50
or
less
6.51
to
7.00
7.01
to
7.25
Paying
ceiling
rate i
(7.25
per
cent)
MILLIONS OF DOLLARS
2,079
9,589
9,557
48,109
3,233
7,281
37,595
37,531
1,216
635
94
108
17
8
5,679
2,422
882
478
68
61
5,651
2,422
882
473
68
61
7,551
10,840
6,372
9,720
4,496
9,130
133
117
1,286
2,055
625
1,951
599
765
6,132
8,668
5,747
6,312
3,416
7,321
6,111
8,668
5,747
6,269
3,416
7,321
1,457
481
1,045
Other time deposits in denominations of less than $100,000—
Maturities o f 6 years or more
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate
(per cent)
Total
Group
5.01
to
7.25
5.00
or
less
7.26
to
7.50
Paying
ceiling
rate 1
(7.50
per
cent)
Most common rate
(per cent)
Total
NUMBER OF BANKS
All banks............................................................
4,529
2,277
867
590
90
79
A16.
5.01
to
7.25
7.26
to
7.50
MILLIONS OF DOLLARS
7
698
7,728
7,728
10,933
4
2
1
386
79
85
111
19
17
4,143
2,198
782
475
69
61
4,143
2,198
782
475
69
61
906
2,115
1,716
2,363
1,129
2,704
8,433
Size of bank (total deposits in millions of
dollars):
Less than 2 0 ..................................................
20-50..............................................................
50-100............................................................
100-500..........................................................
500-1,000........................................................
1,000 and over...............................................
5.00
or
less
Paying
ceiling
rate 1
(7.50
per
cent)
11
O)
(2)
(2)
1,587
9,335
9,335
36
28
113
496
(2)
(2)
870
2,086
1,603
1,866
943
1,966
870
2,086
1,603
1,866
943
1,966
Club accounts—Christmas savings, vacation, or similar club accounts
Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977
Most common rate (per cent)
Group
Total
.01
to
4.00
0.00
4.01
to
4.50
4.51
to
5.50
Paying
ceiling
rate 1
(5.50
per
cent)
Most common rate (per cent)
Total
0.00
NUMBER OF BANKS
.01
to
4.00
4.01
to
4.50
4.51
to
5.50
Paying
ceiling
rate 1
(5.50
per
cent)
MILLIONS OF DOLLARS
All banks...........................
8,849
4,381
1,070
601
2,796
161
1,033
137
105
101
689
165
Size of bank (total deposits
in millions of dollars):
Less than 20..................
20-50.............................
50-100...........................
100-500.........................
500-1,000.......................
1,000 and over..............
4,725
2,556
891
543
72
62
2,897
1,021
274
153
19
18
390
478
109
76
12
6
333
149
55
40
12
12
1,106
909
453
273
29
26
122
23
16
81
286
277
178
52
159
33
27
24
27
10
17
8
29
16
35
9
8
9
14
15
20
11
33
31
217
222
95
23
101
3
161
2
For notes, see p. 542.
548
Treasury and Federal Reserve
Foreign Exchange Operations: Interim Report
This interim report, covering the p erio d Febru
ary through A p ril 1977, is the ninth o f a series
providing information on Treasury and System
foreign exchange operations to supplem ent the
regular series o f semiannual reports that are
usually issued each M arch and Septem ber. It
was p repared by A lan R. Holmes, M anager,
System Open M arket Account, and Executive
Vice President in charge o f the Foreign Func
tion o f the Federal R eserve Bank of N ew York,
and Scott E. Pardee, D eputy M anager for For
eign Operations of the System Open M arket
A ccount and Vice President in the Foreign
Function of the Federal R eserve Bank of N ew
York.
In contrast to much of last year, the markets
for most foreign currencies were fairly free of
strain during the February-April period under
review. In part, the over-all improvement in
trading conditions reflected the greater stability
of several currencies— mainly the pound ster
ling, the Italian lira, and the French franc—
which had come under varying degrees of sell
ing pressure in 1976. In those countries, many
of the policy measures that had been taken by
the respective governments to restore internal
and external balance in their economies were
beginning to take effect. These signs of progress
helped to bolster market confidence, stimulating
reversals of earlier capital outflows and of pre
viously adverse leads and lags in commercial
payments.
With their currencies now in demand, the
respective central banks took the opportunity to
buy dollars in the market and to rebuild their
international reserves. In part, also, the im
provement reflected the fact that participants in
the European Community (EC) snake were able
to avoid the kinds of tensions that had beset
their exchange markets during the months pre
ceding the October 1976 realignment of parities.
On April 1 before any significant speculative
pressures had re-emerged, the member countries
agreed to a further realignment in which the
parities of the three Scandinavian currencies
within the arrangement were adjusted downward
by 3 to 6 per cent against the German mark,
the Dutch guilder, and the Belgian franc.
Under these more settled trading conditions,
the German mark stayed at the bottom of the
EC snake. Meanwhile, the continuing reversal
of earlier hot money inflows to Switzerland
contributed to a further easing of the Swiss
franc. By contrast, the Japanese yen remained
in heavy demand through mid-April, largely in
reaction to a further widening of the Japanese
current-account surplus. The yen rate advanced
6 3 per cent, for a total rise of 10 per cent since
A
last December’s low, before settling back some
2Vi per cent by the end of April.
At times during the 3-month period the dollar
came on offer against continental currencies. By
February the severe winter weather in much of
the United States had contributed to highly
publicized reductions in industrial and agricul
tural output, higher prices, and a larger trade
deficit. As these developments revived market
1. Federal Reserve System
repayments under special swap arrangement
with the Swiss National Bank
In millions of dollars equivalent
Com m itm ents, Jan. 31, 1977 ......................................... 992.5
Repaym ents, F eb.-A pr. 30, 1977 ................................ —132.3
Commitments, Apr. 30, 1977 .......................................
860.2
N ote .—Data are on a transaction-date basis.
Foreign Exchange Operations
2. Drawings and repayments by
foreign central banks and the
Bank for International Settlements (BIS)
under reciprocal currency arrangements
In m illions of dollars; drawings, or repaym ents ( —)
Banks drawing on System
O ut
standing
Jan. 31,
1977
Bank of M exico ....................
150.0
O ut
standing
Apr. 30,
1977
- 150.0
J
35.0
1 - 3 5 .0
BIS (against Germ an marks)
Total ................................
Feb. 1
through
Apr. 30,
1977
150.0
/
35.0
1 - 1 8 5 .0
uncertainties about our near-term economic
prospects, the dollar was marked down against
the German mark and other European currencies
linked directly or indirectly to the mark. On
occasion, the German Federal Bank bought
modest amounts of dollars in Frankfurt. In New
York the Federal Reserve offered marks when
trading became unsettled, selling $20.9 million
equivalent from existing balances on 3 days
during February 14-28.
As the weather improved and the broad ex
pansion of the U.S. economy resumed, trading
came into somewhat better balance through
most of March. Nevertheless, the market re
mained concerned over indications of a quick
ening of inflationary pressures in the United
States and of an even sharper widening in the
trade deficit than could be explained by adverse
weather. For a while the dollar held steady amid
widespread expectations that interest rates
would soon firm in the United States relative
to rates abroad.
As time passed, however, these expectations
faded, and the dollar began to lose resiliency
in the market. After the European close on
Friday, April 1, when incomplete reports of an
EC snake realignment reached the New York
market ahead of the official announcement,
trading became confused and the dollar sud
denly came on offer. The Federal Reserve in
tervened with modest offers of marks, selling
$15.3 million equivalent.
This nervousness quickly passed, but the
dollar’s generally easier tone persisted. Over
subsequent weeks, press reports that industrial
549
countries with current-account surpluses were
being urged to let their currencies appreciate
generated expectations that further exchange
rate adjustments might occur in the near term.
Consequently, even as U.S. interest rates
were beginning to firm in late April, dealers
were by then offering dollars virtually across
the board against the possibility that an ex
change rate realignment might emerge during
the weekend of the London summit meeting,
May 7-8. In this atmosphere the New York
market became unsettled on several occasions,
and the Federal Reserve intervened on 3 days
during April 15-29, selling a total of $30.6
million of marks. By the end of the period, the
dollar had declined by some 2 per cent against
the mark.
In sum, the Federal Reserve sold a total of
$66.8 million of German marks during the February-April period. These sales were all fi
nanced from System balances, which were re
plenished in part— $49.6 million equiva
lent— by occasional purchases of marks from
correspondents and in the market.
During the period, the Federal Reserve and
the U.S. Treasury made further progress in
repaying debts in Swiss francs outstanding since
August 1971. Pursuant to an agreement in Oc
tober 1976 between the U.S. authorities and the
Swiss National Bank for orderly liquidation of
these obligations over a 3-year period, the Fed
eral Reserve paid $132.3 million equivalent of
special swap indebtedness and the Treasury re
deemed $79.3 million equivalent of Swiss
franc-denominated securities by the end of
April.
Most of the francs for these repayments were
purchased directly from the Swiss National
Bank against dollars. But the Federal Reserve
3. U.S. Treasury securities,
foreign currency series,
issued to the Swiss National Bank
In millions of dollars equivalent; issues, or
redemptions ( —)
Comm itm ents, Jan. 31, 1977 ............ ..........................
Redemptions, F eb .-A p r. 30, 1977..............................
Comm itm ents, Apr. 30, 1977.......................................
N ote .—Data are on a transaction-date basis.
1,513.1
—79.3
1,433.8
550
Federal Reserve Bulletin □ June 1977
also bought francs from the Swiss central bank
against the sale of $29.2 million equivalent of
marks and $26.1 million of French francs,
which in turn were either acquired in the market
or drawn from existing balances. In addition,
the System purchased $23.2 million equivalent
of Swiss francs in the market or from other
correspondents in late February-early March,
when the franc was weakening in the exchanges.
By the end of April the Federal Reserve’s spe
cial swap debt to the Swiss National Bank had
been reduced to $860.2 million equivalent,
while the Treasury’s Swiss franc-denominated
obligations had been lowered to $1,433.8 mil
lion equivalent.
During the February-April period the Bank
of Mexico repaid the remainder of last year’s
borrowings from the Federal Reserve and the
U.S. Treasury. In February the Mexican central
bank liquidated at maturity the $150 million
drawn under the swap line with the Federal
Reserve. In April it prepaid the $150 million
in drawings under the Exchange Stabilization
Agreement with the Treasury.
Finally, in February, the U.S. Treasury es
tablished short-term credit facilities for Portugal
totaling $300 million. During the period the
Bank of Portugal drew a total of $125 million
on these facilities and subsequently arranged to
repay $50 million in early May.
□
551
Statements to Congress
Statem ent by Stephen S. G ardner , Vice Chair
man , B oard of G overnors o f the Federal R e
serve System , before the Com mittee on Bank
ing , Housing and Urban A ffairs , U.S. Senate ,
growth of reviews by the Board and the other
banking agencies undertaken to determine if
there were some practicable new measures that
could increase the effectiveness of remedial
May 24, J977.
supervisory action, the Board has been very
conscious of the need to achieve this result
I appreciate the opportunity to testify before this
without unduly interfering with the effective
Committee for the Board of Governors of the
conduct of banking business.
For example, in limiting insider transactions,
Federal Reserve System on S. 71, S. 73, S.
the Board believes that its amended proposal
895, and S. 1433. These bills contain many
contained in Section 203 of the revised recom
needed and appropriate measures. Their timely
mendations submitted to the committee on Jan
enactment in this Congress will aid the regula
uary 31 is preferable to the amendment to Sec
tory agencies in carrying out supervisory re
tion 22 contained in Section 3 of S. 71. The
sponsibilities. As you know, many of the pro
Board concluded, as explained in our letter to
visions contained in the bills parallel recom
mendations made by the Board and result from
the Chairman of June 2, 1976, that the original
the experience gained by the regulatory agencies
suggestion for restrictions on insider transac
tions could have adverse effects on the avail
in recent years.
S.
71, a bill similar to S. 2304, which your ability of qualified directors for banks in smaller
communities and also on the availability of
committee dealt with in the 94th Congress,
credit in such communities. These adverse ef
proposes that violations of various banking laws
fects could be avoided if the revised restrictions
be subject to civil penalties in some circum
on loans to one borrower in Section 22 were
stances when present law carries no penalty
not made applicable to outside directors who
provisions at all or requires a finding of criminal
do not hold more than 10 per cent of the voting
intent, a difficult procedure. S. 71 also restricts
stock of a bank. It is unlikely that such outside
insiders in their dealings with banks and im
directors would be in a position to induce the
proves the regulatory agencies’ power to take
bank to make questionable loans, particularly
remedial action.
in view of the liability to which the other direc
To both emphasize and summarize the
tors would become subject. The revised amend
Board’s support of S. 71, I am attaching a
ment would continue to require the aggregation
bibliography of testimony and recommendations
of loans to officers and also of loans to 10 per
previously submitted to this committee and to
the Congress.1 My detailed comments today will
cent stockholders and companies controlled by
address only those measures that the Board
them in applying the limit on loans to a single
recommends that the committee incorporate in
borrower.
the bill as now drawn. While all of these pro
At the same time the Board recommended
posals for legislative improvement were an out
other changes that we believe would serve to
strengthen the authorities’ control over transac
tions that are more susceptible to insider abuses.
1 The bibliography may be obtained from Publications
We propose that specific approval of two-thirds
Services, Division of Administrative Services, Board
of the entire Board of Directors be required,
of Governors of the Federal Reserve System, Washing
with the interested party abstaining, before a
ton, D.C. 20551.
552
Federal Reserve B ulletin □ June 1977
loan could be made to a director or to a morethan-10-per-cent stockholder or to any company
controlled by such person when the amount of
all such loans exceeds $25,000. In the case of
officers and companies controlled by an officer,
approval of two-thirds of the directors also
would be required for amounts aggregating
more than $15,000. We also recommend that
Section 22 provide that any such loan be made
on substantially the same terms, including in
terest rates and collateral, as those prevailing
at the time for comparable transactions with
other persons.
The Board believes that these revised provi
sions, coupled with the proposal in S. 71 to
provide civil penalties for violations of Section
22 of the Federal Reserve Act, will effectively
contain the risk of insider abuse.
Certain other changes in the provisions of S.
71 suggested in the Board’s revised proposal
were not included in Senator Proxmire’s
amendment no. 196. I would like to call atten
tion to those that are of particular importance
to the Board and to urge their inclusion in S.
71.
The Board believes that the requirements for
the issuance of a temporary cease-and-desist
order should be broadened enough to include
circumstances when the perceived violations of
law and unsafe and unsound practices threaten
not only insolvency or substantial dissipation of
the assets or earnings of a bank or bank holding
company but also a serious weakening of the
condition of the bank or bank holding company.
We also believe that the standard for judicial
review of such orders should be made clear so
that a court may enjoin a temporary cease-anddesist order only when the agency’s issuance
of such order was arbitrary and capricious. A
similar clarification should be made to Section
8(f), the judicial review provisions for suspen
sion of officers or directors from office pending
administrative removal action under Section
8(e).
The Board also believes that a need exists
for extension of the Board’s removal powers
under the act to officers and directors of bank
holding companies and their nonbank subsidi
aries and Edge Act and Agreement Corpora
tions. The Federal Reserve should have explicit
authority to issue subpoenas in connection with
hearings and investigations under the Bank
Holding Company Act and the authority to
assess civil money penalties for failure of bank
holding companies to file reports required under
the act. I want to stress that the Board’s ability
to investigate possible violations or evasions of
the Bank Holding Company Act and to police
effectively the requirements of the act is
seriously hampered by the lack of this explicit
subpoena authority.
Although not suggested in our revised pro
posal, we believe that it would be desirable to
make the divestiture authority in Section 4 of
S. 71 applicable to bank as well as nonbank
subsidiaries as originally suggested. In many
instances, the subsidiary bank represents only
a small part of the holding company’s interests.
In such cases, divestiture of the bank would be
the most efficient and simplest method of pre
venting the unsatisfactory condition of the
holding company’s nonbank subsidiaries from
impairing the condition of the bank.
I
also want to comment on amendment no.
155, which has been proposed by Senator
Tower. The Board has carefully studied this
amendment, which would institute certain addi
tional due process requirements when supervis
ing agencies exercise removal authority over
officers and directors of insured banks. We
believe that the Board’s revised proposal already
satisfies the requirements of due process.
Personal dishonesty must now be proven in
a removal action. Senator Tower’s amendment
would to a large extent continue this require
ment. Experience has shown that it is extremely
difficult to establish evidence of dishonesty.
More importantly, it is too narrow a criterion
because the abuse of banks more frequently
occurs through the gross negligence or the con
tinuing disregard for sound operations. Thus,
we believe the authority for suspension and
removal should be broadened as we proposed
to include serious charges such as these,
whether or not such conduct stems from a vio
lation of a cease-and-desist order.
Further, S. 71 and the Board’s revised pro
posal provide for the assessment (after notice
and opportunity for submission of views) of
civil money penalties for violations of various
Statements to Congress
provisions of the Bank Holding Company Act,
and orders issued under the Financial Institu
tions Supervisory Act and the Federal Reserve
Act. The assessment of penalties would be sub
ject to de novo review in an appropriate U.S.
district court, and the Board believes that its
proposals should be altered to include a formal
hearing held in accordance with the Adminis
trative Procedure Act. Such an amendment
would result in less burden on the judiciary
(which would review the administrative decision
on the substantial evidence test rather than by
a trial de novo) and would avoid the delays and
other difficulties associated with a collection suit
by the U.S. Department of Justice, especially
in those cases where the assessment is not of
substantial size. The administrative imposition
system proposed by the Board would conform
to the recommendation of the Administrative
Conference of the United States.
The Board also suggests that the committee
consider as additions to S. 71 some other provi
sions in the draft bill submitted to the committee
last January. Title 1 of that proposal would
provide for a Federal Bank Examination Council
along the lines of S. 3494, introduced by Sena
tor Stevenson in the 94th Congress, and con
sistent with suggestions made by the Board in
testimony before your committee in December
1975. The Council would establish uniform
standards, procedures, and reporting forms for
the examination of banks to be employed by
each of the Federal banking agencies; establish
and conduct schools for bank examiners; and
develop uniform reporting systems for banks,
bank holding companies, and nonbank subsidi
aries. It seems particularly appropriate to estab
lish such a Council now in a period of improving
liquidity and general strengthening of banking
institutions and coordinate the advances in pro
cedure and technology that have been developed
by the individual banking agencies as a result
of the experience of the last few years.
The existing informal nonstatutory coordinat
ing committee has provided an effective forum
for consultation primarily on interest rate ceil
ings applicable to savings and time accounts of
banks and savings and loan associations and on
related policy issues. However, we do not be
lieve that it is desirable to use the coordinating
553
committee mechanism for a Federal Bank Ex
amination Council because both the membership
and subjects to be considered would be dif
ferent. The Federal Home Loan Bank Board is
now a member of the Coordinating Committee,
and the Administrator of Federal Credit Unions
may be added to its membership. The Bank
Examination Council should be limited to the
Federal banking agencies and should include
some degree of participation by the State bank
ing departments so that attention can be con
centrated on the unique problems of bank ex
aminations, bank reports, and the training of
bank examiners. A new undertaking of this kind
would be significantly assisted by statutory au
thorization.
The Board also suggests that this period of
strengthening in the banking system affords the
opportunity for an objective assessment of the
need for emergency takeover provisions such as
those contained in S. 890, introduced at the
Board’s request in the 94th Congress and con
tained in Section 301(b) to (d) of the Board’s
attached draft bill. In the last Congress your
committee approved the elimination of the 30day notice requirement in Section 3(b) of the
Bank Holding Company Act when the Board
finds that an emergency situation exists or that
immediate action is necessary to prevent the
probable failure of the bank or bank holding
company involved in the proposed acquisition.
We urge you to take similar action this year.
The Board also recommends serious consid
eration be given to the provisions in Section
301(d) to allow a large failing bank to be ac
quired in carefully controlled circumstances by
an out-of-State holding company. In the last
several years, there have been some instances
requiring sales of a failing bank when the com
munities involved might have been better served
if an emergency interstate acquisition procedure
of this kind had been available.
Turning to S. 73, a bill to prohibit interlock
ing management and director relationships be
tween depositary institutions, the Board con
tinues to urge enactment of this proposal with
the technical modification noted in our report
of February 4, 1977.
Let me briefly comment on the Board’s in
volvement in this subject. In 1970 as a result
554
Federal Reserve Bulletin □ June 1977
of a request from the Congress, the Board made
a special review of interlocking personnel rela
tionships in all of the Federal Reserve districts
and also considered the adequacy of the present
provisions of Section 8 of the Clayton Act
affecting interlocking relationships. As a result
of this extensive review the Board concluded
that it would be desirable to make several
changes in the existing interlock provisions.
The Board communicated the results of its
study to the Congress in 1970, and in each of
its annual reports thereafter has included a rec
ommendation that these interlocking relation
ship prohibitions should be revised. Last year
Chairman Proxmire requested the Board to draft
appropriate amendments to implement these
recommendations. This resulted in our proposal
of a bill substantively the same as S. 73.
Although interlocking directorates are not
necessarily harmful, such relationships between
institutions that compete for the funds of the
public involve a risk of abuse that the Board
believes outweighs any reasonable expectation
of benefits. We believe this reasoning applies
equally to relationships between all institutions
engaged in the business of receiving deposits
that may be in competition with each other,
including member banks, nonmember banks,
savings and loan associations, savings banks,
industrial banks, credit unions, or other similar
institutions, whether or not their deposits are
insured by a Federal agency. Accordingly, the
provisions of S. 73 would extend the interlock
prohibitions to all such depositary institutions.
In order to simplify the test of determining
which institutions are to be covered by the
prohibition, now specified as being institutions
in the same or adjacent communities, the bill
would provide that interlocks would be prohib
ited between institutions located in either the
same standard metropolitan statistical area or
within 50 miles of each other. Since there is
also a likelihood of nationwide competition for
large commercial accounts between very large
institutions, this limitation would be supple
mented by a nationwide prohibition against an
interlock between an institution exceeding $1
billion in total assets and another exceeding
$500 million in total assets.
Provisions are also included in S. 73, Section
2(c)(ii), to continue the exemption for institu
tions under common control but in such a form
as to prevent evasion of the prohibitions by such
a device as the exchange of a few shares of
stock between majority shareholders of two
separate institutions.
In one instance, the draft would make the
present law less restrictive by prohibiting inter
locking service by an employee or officer only
if he performs management functions for one
of the institutions. Employee interlocks involv
ing those who do not perform management
functions do not present a significant potential
for diminishing competition.
Although we do not believe that detailed
regulations will be necessary, general regulatory
authority is proposed to be given to the Board
as a precautionary matter to prevent evasions
of the statute. The Board would also be given
the authority to authorize some interlocks. We
believe there are circumstances such as an in
terlock between an established institution and
a small or newly established depositary institu
tion or a minority bank that for a limited period
of time might result in an increase rather than
an inhibition of competition.
Depositary institutions would have 5 years
after the date of enactment to find replacements
for individuals who would be prohibited from
service under the new legislation. It would seem
needlessly disruptive to concentrate the search
for qualified individuals in a shorter period of
time.
S. 895, amendments to the Federal Deposit
Insurance Act, has been introduced by Chair
man Proxmire at the request of the Federal
Deposit Insurance Corporation. The Board has
no comment to make on the proposals in this
bill that are of a housekeeping nature and that
extend to the Federal Deposit Insurance Cor
poration (FDIC) authority over foreign branches
and investments of nonmember banks compara
ble to that the Board exercises for member
banks.
However, the provisions that would extend
FDIC examination and subpoena authority to
bank holding companies and subsidiaries of
bank holding companies, of which nonmember
banks are subsidiaries, amount to a substantive
change in the law. The Congress, in enacting
Statements to Congress
the Bank Holding Company Act of 1956, placed
the jurisdiction and examination authority over
bank holding companies in the Board. In con
nection with the Bank Holding Company Act
Amendments of 1970, the Congress again gave
extensive consideration to various proposals for
a change in jurisdiction over bank hqlding com
panies and reconfirmed the Board’s authority.
We believe that giving this authority to the
FDIC introduces an undesirable duplication in
the bank regulatory structure. We see no need
for two Federal agencies to examine and super
vise the same institution.
Finally, I would like to comment on S. 1433,
the “ Depository Institutions Conflict of Interest
A ct.” This bill would revise the conflict of
interest prohibitions applicable to members of
the Board of Directors of the Federal Deposit
Insurance Corporation, which includes the
Comptroller of the Currency, and the Board of
Governors of the Federal Reserve System and
prohibits employment by or investment in a
holding company or holding company affiliate
of an institution supervised by the agency.
Present law covers only supervised institu
tions. The revisions would extend such prohibi
tions to affiliates of supervised institutions. It
would also apply similar prohibitions to the
members of the Federal Home Loan Bank Board
and the Administrator of Federal Credit Unions.
These prohibitions would be applicable for a
period of 2 years after leaving Government
service, whether or not the individual had com
pleted his term of office.
The Board is in complete agreement with the
desirability of a specific provision that the em
ployment and investment prohibitions are appli
cable to affiliates of the supervised institution,
as well as the supervised institution itself. This
is consistent with the spirit and purpose of the
conflict of interest prohibitions.
However, we question whether it is fair to
those now in office, or necessary or desirable,
555
in the case of new appointees, to apply these
prohibitions against both employment and in
vestment to officials who have served their full
terms. With respect to conflicts of interest,
under the provisions of Section 207 of the U.S.
Criminal Code (18 U.S.C. § 207) it is a criminal
offense for any officer or employee of the exec
utive branch to appear at any time in connection
with any judicial or other proceeding in which
he participated personally and substantially as
an officer or employee. That section also pro
hibits any such officer or employee for 1 year
after the end of his employment from appearing
in connection with any such proceeding that was
under his official responsibility within a period
of 1 year prior to the termination of such re
sponsibility. In the case of the Board of Gover
nors, these limitations are also contained in
Board regulations on limitations on activities of
former members and employees of the Board.
In view of these provisions, we doubt the
need for the application of new limitations
against officials who serve their full term. With
respect to these officials, if any additional limi
tation is imposed we suggest that it should be
limited to no more than 6 months after the end
of their terms.
The Board supports Section 7 of the bill to
raise to Level I of the executive schedule the
position of Chairman of the Board of Governors
of the Federal Reserve System, and to Level
II the position of the Board Members. The
Board’s position on this matter was presented
in testimony earlier this month by Governor
Lilly before the Subcommittee on Employee
Ethics and Utilization of the Committee on Post
Office and Civil Service of the U.S. House of
Representatives, and I ask that his testimony be
made a part of the record of this hearing.
Mr. Chairman, the Board would be pleased
to provide any further information or assistance
to you and to the Committee in your consid
eration of these bills.
□
A dditional statements follow.
556
Federal Reserve B ulletin □ June 1977
Statem ent by J. Charles Partee, M em ber , B oard
of Governors o f the Federal R eserve System ,
before the Subcom m ittee on Intergovernmental
R elations of the Com m ittee on G overnm ental
A ffairs, U.S. Senate, M ay 25, 1977.
It is a pleasure to appear before this distin
guished committee today to present the views
of the Board of Governors of the Federal Re
serve System on S. 600. This bill sets out
specific procedures for the periodic review of
the myriad of regulations issued by our many
Federal agencies, with consequent revision and
restructuring where appropriate. In testimony
before the full committee on a similar bill 1
year ago, Vice Chairman Gardner indicated the
Board’s strong sympathy and support for the
basic objectives of the proposed legislation. I
am happy to note that the Board’s suggestions
with respect to the need to consider the interre
lated nature of separate industry regulations and
the greater time required for a truly comprehen
sive review process have been addressed in S.
600.
The Board continues to support the broad
goals expressed in the Regulatory Reform Act.
By virtue of our continuing evaluation of eco
nomic developments in connection with the for
mulation and conduct of monetary policy, the
Board is acutely aware that government regula
tion of various aspects of economic activity may
introduce distortions and inequities into the
economy. Despite laudable objectives, there is
little doubt that both Federal legislation and the
regulations implementing that legislation have
often had the unintended effects of introducing
rigidities and imperfections into the functioning
and evolution of industries and their related
markets. All too frequently the results have been
a lessening in competition, a reduced resilience
to deal with economic change, and a higher and
more rigid structure of costs and prices that the
consuming public must inevitably bear.
It is clear also that regulation has contributed
to the inefficient use of real resources in the
economy. When regulated businesses are pre
cluded from competing directly on a price basis,
for example, they are likely to spend more on
advertising, or elaborate office furnishings, or
an unnecessary proliferation of facilities. Banks
and other depositary institutions, which are not
unknown for resorting to such devices, also
frequently offer free services and give away free
merchandise in their efforts to attract new funds
when price competition is limited by interest
rate ceilings on deposits.
In addition, the costs of compliance with
regulation can be quite high. In banking, nu
merous reports must be filed with Federal bank
regulatory agencies or filled out and kept acces
sible for enforcement purposes. The cost of this
paperwork to the institution constitutes a hidden
tax imposed by the regulators on the regulated
that must ultimately be passed on to the bank’s
customers. The Board has been quite aware of
these costs and has embarked upon a Systemwide effort to cut back on the reporting burden.
I am happy to say that, in the last year and
a half, we have been able to reduce the over-all
volume of reports received by around 7 per cent.
Worst of all, Federal law and regulation have
sometimes had the effect of fostering monopo
listic and cartel-like behavior on the part of
ostensibly competing firms by insulating these
firms from the discipline of effective competi
tion. On other occasions, regulatory action may
preserve the inefficient marginal firm, or divert
resources to less than the most productive uses
through the offering of special advantages to
certain industries. Moreover, promotion of the
special interests of individual industries via the
legislative and regulatory process, in the name
of the public interest, may have the effect of
advancing those special interests at the expense
of consumers. The danger that such regulation
can be anticonsumer in nature has been en
hanced because, until recently, the economic
impact on consumers often was omitted from
the factors considered in evaluating net public
benefits.
In fairness, it needs to be recognized that
some Federal regulation does promote the public
interest and contribute to the performance of the
economy. For example, regulation designed to
maintain the safety and soundness of individual
banks is critical to the strength of the financial
system and the efficient functioning of the
economy as a whole. Another example appears
in the area of securities regulation where the
SEC disclosure requirements help make needed
Statements to Congress
information available to aid investor decision
making and increase the efficiency of securities
markets. But there is a critical need to review
and evaluate outstanding regulations on a peri
odic basis to see whether they are still justified,
can be simplified, or need to be modernized in
light of recent developments.
It is important to recognize, I believe, that
regulation p e r se is never costless. As noted,
there are always certain compliance and admin
istrative costs incurred by both the regulator and
the regulated. Moreover, there are usually indi
rect and more subtle costs associated with re
duced freedom of choice for the regulated and
the consuming public. The goal of the regulator
in implementing regulations should be to mini
mize both these costs and their distributional
effects and to assure that there are always public
benefits that outweigh these costs. As I under
stand it, the principal purpose of the proposed
legislation is to assure that there will be such
a thorough and detailed review of these effects
of the regulatory process, agency by agency and
industry by industry.
While the Board agrees with the general
thrust and objectives of S. 600, there are certain
key features with respect both to its coverage
and method of implementation that need to be
clarified. We are especially concerned with the
so-called “ sunset” provisions that require the
termination of, first, regulatory enforcement au
thority and, second, the entire agency in the
event that no reform plans are enacted within
the prescribed time period. There are several
reasons for questioning the advisability of using
such a strong forcing mechanism in order to
assure that the necessary regulatory reform will
take place.
First, many Federal agencies, pursuant to
their legislative mandates, perform a variety of
functions that are not basically regulatory in
nature, but that may still depend in part for their
implementation on enabling rules, orders, and
regulations. In the case of the Federal Reserve
Board, for example, such responsibilities in
clude: (1) its central banking function with
regard to international finance; (2) the formula
tion and implementation of monetary policy; (3)
oversight activities with respect to the Federal
Reserve Banks, which in turn play a pivotal role
557
in the operation of the Nation’s payments sys
tem; (4) its rules for the administration of the
discount window through which the Federal
Reserve System serves as the lender of last
resort to the banking system and, in exigent
circumstances, to the economy as a whole; and
(5) the supervision of member banks and bank
holding companies. In comparison with these
functions, the Board’s strictly regulatory re
sponsibilities for banking and finance, including
its role in consumer credit protection, account
for a relatively small portion of the agency’s
efforts or for the impact of its actions on the
economy.
The coverage of the Regulatory Reform Act,
in the case of the banking agencies, specifically
refers to their “ regulation of banking and fi
nance.” It would appear, therefore, that the
intent is not to discontinue all nonregulatory
functions or to dismantle an entire agency for
want of reform plans to cover the agency’s
regulatory functions. We believe that the Con
gress would not want to risk the abolishment
or suspension, even temporarily, of the conduct
of monetary policy or the supervision of banks.
Similarly, we would be deeply concerned if
there were no central oversight of the operation
of the Reserve Banks and the payments mecha
nism, or of the discount window function. Such
potential problems are by no means unique to
the Federal Reserve Board. For example, what
would become of the deposit insurance function
of the FDIC or of its role with respect to the
banks requiring liquidation? I should also point
out that the Comptroller of the Currency is the
chartering and supervisory authority for national
banks, and these activities, too, would be sus
pended in the event of termination of that
agency. Surely these functions should continue.
Nevertheless, there are no explicit provisions
within the bill to provide for the continuance
of these functions. Even if they were construed
to be covered by the provisions for regulations
“ essential for preserving public health and
safety,” we would have grave reservations that
the Department of Justice could assemble the
necessary resources to perform these functions
that are essential to the Nation’s economic
well-being. For these reasons, we must presum e
that the bill is directed to the purely regulatory
558
Federal Reserve Bulletin □ June 1977
activities of the agencies and would not, in the
case of the Federal Reserve Board, encompass
central banking, monetary policy, oversight of
the Reserve Banks, operation of the discount
mechanism, bank supervision, and the inciden
tal regulations of the Federal Reserve necessary
to carry out these functions.
In view of the problems associated with the
sunset provisions, the Board would urge a nar
rower and more specific delineation of the
aspects of regulation of banking and finance to
be covered by the bill, to which the application
of these provisions would then be directed.
The Board has a second concern about the
sunset mechanism. Instead of easing the regula
tory climate, the abrupt termination of even the
regulatory functions of Federal agencies might
present obstacles to the efficient functioning of
the economy simply because of the language
of many of our laws. Federal statutes are gener
ally implemented by way of agency regulations,
and in many cases agency approval pursuant to
those regulations is necessary before individuals
or firms can participate in certain activities or
markets.
In the event the sunset provisions of S. 600
were triggered by lack of action on bank regu
latory reform, under one possible interpretation
this would mean that institutions seeking Board
approval would be hampered— not freed— for
lack of a regulatory process. Thus, for example,
as the Bank Holding Company Act is written,
it is unlawful for a bank holding company to
be formed without the express approval of the
Board of Governors. Similarly, existing bank
holding companies wishing to expand or to
engage in new activities would be denied the
opportunity to have their applications for Board
approval reviewed and acted upon. The same
situation would exist with respect to applications
to the Board for new branch offices, to establish
Edge corporations, to engage in foreign banking
activities requiring Board approval, or for per
mission to issue new debt or equity securities—
to name a few. The result could be severe
inequities for firms who could not obtain the
approval of the Board to engage in activities
that may have already been authorized for their
competitors.
This brings me to the final point I wish to
make about the proposed legislation. As I have
noted, most regulatory agency rules and regula
tions are issued pursuant to the mandates of
specific laws. As such they represent the efforts
of the agencies to implement congressional in
tent. It may therefore be that many of the
economic problems and inequities caused by
regulation are rooted in the enabling legislation
itself, rather than in the specific form the regu
lations have taken.
I would suggest, therefore, that consideration
be given to broadening the scope of the review
contemplated in the Regulatory Reform Act to
encompass, where necessary, review and reform
of the enabling legislation as well as existing
regulation. Real progress in improving and
simplifying our Federal regulatory apparatus, I
would imagine, would often require rather fun
damental amendments to underlying statutes.
In conclusion, I wish to reiterate that the
Board supports the basic concepts of the Regu
latory Reform Act but believes that further at
tention should be given to problems of its scope
and implementation.
□
Statem ent by J. Charles Partee, M em ber, B oard
of Governors of the Federal R eserve System ,
before the Committee on Banking, Housing and
Urban A ffairs , U .S. Senate, June 6, 1977.
ommends the enactment of this bill, because by
providing a means for earning a direct return
on the Treasury’s liquid balances it will materi
ally reduce certain operational difficulties en
countered by the Federal Reserve in its day-today management of monetary policy.
Until recent years, Treasury cash manage
ment practices were conducted with a view to
keeping fluctuations in Treasury balances from
I appreciate the opportunity to appear before this
distinguished committee to present the views of
the Board of Governors of the Federal Reserve
System on H.R. 5675. The Board strongly rec
Statements to Congress
influencing the supply of bank reserves and
short-term interest rates. This policy, in effect,
recognized that the level of the Treasury balance
is quite volatile because cash flows to the
Treasury— from taxes and Federal borrowing—
tend to be bunched at particular times of the
month and year, whereas cash outlays are more
evenly distributed. It makes a difference
whether the Treasury maintains its cash balance
with private depositories or with the Federal
Reserve. By holding most of the balance in tax
and loan accounts at commercial banks the
potential reserve effects of fluctuations in the
Treasury’s cash position are minimized. When
funds moved to or from the Treasury, they
simply shifted between private and public de
mand deposits at banks and exerted little net
impact on the total supply of reserves available
to the banking system. The need for Federal
Reserve open market operations to offset the
reserve effects of variation in the Treasury’s
balance was reduced correspondingly.
The Treasury did maintain an operating bal
ance at Federal Reserve Banks as well, on which
the bulk of its checks were drawn. But as checks
for outlays were cashed, the operating balance
was quickly replenished by “ calls” on the
Treasury’s tax and loan accounts at private
banks. In this way the Treasury held a roughly
constant balance with the Federal Reserve Sys
tem.
Of course, some deviation in the level of the
operating balance was inevitable. An accurate
current measure of the volume of Treasury
checks written was difficult to obtain, and it was
hard to forecast exactly when outstanding
checks would clear through the Federal Reserve.
Nevertheless, the procedure was highly effec
tive in reducing the degree of fluctuation in the
Treasury’s account at the Federal Reserve
Banks. Thus, from the standpoint of minimizing
the impact of swings in the Treasury’s cash
position on the supply of bank reserves, the
former Treasury tax-and-loan account system
worked well, and the implementation of mone
tary policy was insulated quite successfully.
In 1974, however, the Treasury re-examined
the tax-and-loan account system, especially with
regard to the foregone potential interest earnings
on its cash balances. An earlier study had con
559
cluded that the Treasury was adequately com
pensated for this revenue loss by services pro
vided by the banks. But with the general rise
in market interest rates that had occurred during
the late 1960’s and early 1970’s, and the need
to maintain larger balances consistent with
growing Federal outlays, it appeared that the
foregone interest income on the Treasury’s bal
ance had come to exceed substantially the value
of services rendered to the Treasury by the
depositary institutions maintaining tax and loan
accounts.
The Treasury did not have the authority to
invest directly in short-term earning assets, and
thus to earn some income with its idle cash.
But it was assured of an indirect return when
it reduced its non-interest-bearing deposits at
commercial banks and transferred the bulk of
its cash balance to the Federal Reserve System.
When the Treasury’s account with the Federal
Reserve is increased, the System makes corre
sponding additions to its holdings of Govern
ment securities. And since virtually all of the
earnings on Federal Reserve assets are turned
over to the Treasury, this transfer of deposits
provides a return to the Treasury that would not
be available if the balances remained with de
positary institutions.
Unfortunately, this change in procedure has
complicated the task of managing monetary
policy. This is so because virtually all of the
short-run volatility in Treasury deposits now
occurs in the accounts held with Federal Reserve
Banks. Since variation in the level of such
deposits has a dollar-for-dollar impact on the
supply of reserves available to the banking sys
tem, the current concentration of the Treasury’s
cash position in these accounts greatly increases
the need for offsetting Federal Reserve open
market operations.
When most of the Treasury’s cash balance
is held at Federal Reserve Banks— as has been
the case since 1974— increases in the Treasury’s
account reduce the over-all reserve position of
the banking system, and decreases ease that
position. Erratic swings in the Treasury balance
are often large and concentrated, so that the
Federal Reserve must take action through open
market operations to offset the unwanted influ
ence on bank reserves. The need for intervention
560
Federal Reserve Bulletin □ June 1977
in the Government securities market on this
scale has sometimes made the conduct of mon
etary policy in the short run more difficult.
A few comparisons will help to illustrate the
significance for open market operations of this
shift in Treasury policy. In 1970— before the
Treasury began to alter its cash management
techniques— the average weekly change in
Treasury deposits at the Federal Reserve was
only $124 million. In 1976— after the new pol
icy had been fully implemented— the average
weekly change jumped to $2.0 billion. Prin
cipally due to this enormous increase in volatil
ity, the average weekly change in reserves pro
vided or absorbed by Federal Reserve open
market operations rose to nearly $2.5 billion in
1976 from less than $400 million in 1970.
The shift is even more striking when one
focuses on the weeks of peak need to offset
technical factors affecting bank reserves. In
1970, the maximum week-to-week change in
reserves resulting from open market operations
amounted to just under $1.2 billion, and the
movement in the Treasury balance necessitated
only $130 million of this change. By 1976,
however, open market operations added or ab
sorbed more than $4.0 billion of reserves in 12
different statement weeks, and in each case
fluctuation in the Treasury balance was the
dominant factor requiring action. The largest of
these week-to-week changes required interven
tion totaling $6.0 billion.
To date the Federal Reserve has generally
been able to execute the requisite volume of
open market operations needed to offset the
unwanted reserve effect of these enlarged
swings in the Treasury balance. However, there
have been significant difficulties. The Treasury
balance has become harder to estimate, large
day-to-day variations in the balance make it
more difficult to develop a consistent short-term
operating strategy, and the sheer size of the
operations required has at times constrained the
System’s flexibility in pursuing the more general
objectives of monetary policy.
The Federal Reserve’s success in offsetting
the reserve impact of sharp fluctuations in the
Treasury balance has been aided by the avail
ability of a relatively large market supply of
Government securities, as is typical of periods
with relatively low interest rates and low inven
tory financing costs. As the economy continues
to expand, however, the picture could change.
If pressures on financial markets intensify,
Government securities are likely to be less
readily available in the market and a large
volume of open market operations may become
more difficult to accomplish.
Thus, from a monetary policy standpoint, the
Board urges prompt action on the proposed
legislation. Passage of H.R. 5675 would permit
the Treasury to receive at least the amount of
earnings it is obtaining now without the present
complications and operational costs to Federal
Reserve open market policy. Moreover, there
should be distributional advantages if the
Treasury maintains its balance with depositary
institutions. Then, when balances shift between
the private sector and the Treasury, the supply
of funds in regional and local credit markets
can remain unaffected. If, instead, these funds
are moved to and from the Federal Reserve,
there can be unsettling transitory effects on
individual credit markets, since the impact of
offsetting open market operations tends to focus
initially on major money market center institu
tions.
I
have left all comments on the technical
implementation of H.R. 5675 to Mr. Mosso,
since he has direct responsibility for adminis
tration of Treasury balances. However, I would
like briefly to comment on one provision of the
bill. Under present law, commercial banks,
mutual savings banks, and Federally chartered
credit unions may all hold Treasury deposits.
Savings and loan associations are the only type
of depositary institution not authorized to par
ticipate in the tax-and-loan account system, and
this bill would add them to the list. In this
connection, I would like to point out that sav
ings and loans typically hold a very large share
of their earning assets in long-term mortgage
loans. Since Treasury operating balances are by
their very nature volatile, it seems particularly
important that the regulatory authorities insist
that these institutions add to their short-term
liquid assets in amounts commensurate with any
such balances obtained.
□
561
Record o f Policy Actions
o f the Federal Open Market Committee
M E E T IN G H E L D O N A P R IL 19, 1977
D o m e stic P o lic y D ire c tiv e
The inform ation review ed at this m eeting suggested that growth
in real output of goods and services in the first quarter of 1977
had increased from the pace in the fourth quarter of 1976— now
indicated by revised estim ates of the C om m erce D epartm ent to have
been at an annual rate of 2.6 per cent, com pared with 3.9 per
cent in the third quarter and 4.5 per cent in the second. The rise
in average prices— as m easured by the fixed-weighted index for
gross dom estic business product— appeared to have been apprecia
bly faster than the annual rate of 4.9 per cent estim ated for the
fourth quarter of last year, in part because of the adverse effects
of severe w inter weather on prices of foods.
A ccording to staff estim ates, growth in real G N P had been at
a slightly higher rate in the first quarter than had been projected
a m onth earlier. It now appeared that the expansion in consum er
purchases of goods and services was substantially stronger than
had been anticipated; that the gain in business outlays for equipm ent
was larger; and that the rebound in business inventory investm ent
from the sharply reduced rate in the fourth quarter of 1976 was
greater. On the other hand, growth in construction outlays slowed
som ewhat m ore than had been expected, and the deterioration in
net exports was m ore pronounced.
The staff projections for subsequent quarters incorporated revised
assum ptions for fiscal policy, as a result of the P resident’s an
nouncem ent on April 14 of changes in his package of m easures
designed to stim ulate growth in econom ic activity. The revised
assum ptions excluded rebates of Federal incom e taxes and related
paym ents and any increase in the business investm ent tax credit.
It was still assum ed that personal incom e taxes w ould be reduced
and that Federal spending for job-creating program s and for public
562
Federal Reserve Bulletin □ June 1977
works would be expanded. No assumptions were made with respect
to the administration’s energy program, which was to be the subject
of an address by the President to the Congress on April 20.
Growth in real GNP over the next few quarters was still projected
to be substantial, reflecting strength in consumer demands and
expansion of business investment in both fixed capital and invento
ries. The projections continued to suggest that the rise in the
fixed-weighted price index for gross business product would be
less rapid in the quarters immediately ahead than in the first quarter,
when it had accelerated because of the adverse effects of severe
weather. Upward price pressures over the next several quarters were
nonetheless expected to be somewhat greater than had been antici
pated earlier, partly because of further deterioration in the outlook
for prices of some foods and partly because of the prospect of
another increase in the minimum wage soon after midyear.
In March economic activity continued to gain in strength. Indus
trial production— which had risen 1 per cent in February, recovering
to the December level— expanded about lVi per cent further in
March. About one-third of the gain was attributable to a substantial
rise in production of motor vehicles, but increases in output were
widespread among other types of consumer durable goods and
business equipment and among construction supplies and materials.
For the first quarter as a whole, industrial production expanded
almost twice as much as in the preceding quarter, despite the
adverse effects of the weather in January and early February.
Rates of capacity utilization rose in March to about 82 per cent
in manufacturing as a whole and to about 81 per cent in the
materials-producing industries. However, these utilization rates
were still 6 and 10 percentage points, respectively, below the peaks
in the previous business expansion, when capacity constraints in
a number of materials-producing industries limited growth in out
put.
Private housing starts, following their weather-related drop in
January, rebounded in February and rose sharply further in March
to an annual rate of about 2.1 million units— the highest rate in
nearly 4 years. For the first quarter as a whole, starts about equaled
the total for the fourth quarter of 1976 and remained more than
one-tenth above that for the third quarter.
Developments in the labor market in recent months reflected
Record of Policy Actions of FOMC
the strengthening in economic activity. Payroll employment in
nonfarm establishments rose sharply in March, after having in
creased considerably in each of the preceding 4 months. Employ
ment gains in March were widespread by industry and were
particularly large in the manufacturing, construction, and serviceproducing industries. The labor force also increased sharply further
in March; nevertheless, the unemployment rate declined from 7.5
to 7.3 per cent, returning to the January level.
Personal income, which had changed little in January, rose
substantially in February. The rise was concentrated in wage and
salary disbursements and for the most part reflected further gains
in employment and recovery in the average length of the workweek
from the adverse effects of the weather in January. The gain in
employment in March suggested that wage and salary payments
continued to grow at a rapid pace.
Expansion in retail sales had been quite strong recently. Sales
for February had been revised upward, and in March they rose
substantially further, reflecting widespread increases among types
of retail outlets.
Sales of new domestic and foreign automobiles surged upward
in March to an annual rate of about 12% million units, compared
with rates of about 10 3 million in February and 10 million in
A
the fourth quarter of 1976. The rate in March was the highest
since the spring of 1973, and it suggested improvement in consumer
confidence and a strong underlying demand for automobiles stem
ming in part from postponed replacement needs. The gains were
impressive for foreign as well as for domestic models; sales of
foreign models reached a new record annual rate of 2 million units.
Business capital outlays appeared to have strengthened in the
first 2 months of 1977, although much of the improvement reflected
recovery in shipments of trucks, automobiles, and farm equipment
from the effects of strikes in the fourth quarter of 1976. The value
of private nonresidential construction put in place rebounded in
February, but it remained below the peak attained last September.
New orders for nondefense capital goods— which, according to
revised data, had risen somewhat more in January than had been
reported earlier— declined in February. However, the average for
the 2 months was significantly higher than the monthly average
for the fourth quarter of 1976. Unfilled orders for such goods edged
563
564
Federal Reserve Bulletin □ June 1977
up over the January-February period. Contract awards for com
mercial and industrial buildings— measured in terms of floor
space— declined in February, and the average for the first 2 months
of 1977 was unchanged from that for the fourth quarter of 1976.
The Commerce Department had reported in mid-March that busi
nesses were planning to spend 11.7 per cent more for plant and
equipment in 1977 than in 1976.
The index of average hourly earnings for private nonfarm pro
duction workers rose at an annual rate of about 5 per cent in March.
Indexes for January and February had been revised upward appre
ciably, however, with the result that the rise over the 3 months
was at an annual rate of IVi per cent— somewhat faster than the
pace during 1976. Much of the acceleration in the first quarter
was attributable to an increase in the minimum wage at the
beginning of 1977, which had affected rates of pay in the service
and trade industries in particular.
The wholesale price index— which had risen 0.9 per cent in
February, after having increased 0.6 per cent on the average in
the preceding 5 months— rose 1.1 per cent in March, the largest
monthly increase since late 1975. Average prices of farm products
and foods rose 2.1 per cent in March, reflecting especially sharp
increases for coffee, cocoa, tea, soybeans, fresh fruits and vegeta
bles, and sugar. Average prices of industrial commodities rose 0.8
per cent— somewhat more than in the immediately preceding
months— reflecting large increases for metals and metal products,
transportation equipment, textiles and apparel, and fuels and power.
The consumer price index went up 1.0 per cent in February,
compared with 0.8 per cent in January and with 0 .4 per cent on
the average during the second half of 1976. Retail prices of foods
rose sharply in February, led by increases in fresh fruits and
vegetables and coffee. Among nonfood items, substantial increases
were reported for fuel oil, gasoline, and used cars.
The average value of the dollar against leading foreign currencies
had declined about Vi per cent since mid-March, returning to about
its level at the beginning of the year. The depreciation of the dollar
in the recent period was accounted for mainly by an appreciation
of the Japanese yen, which rose 4 per cent in response to intensified
demands for that currency. Demands also intensified for the U.K .
pound, but exchange market intervention by the Bank of England
Record of Policy Actions of FOMC
kept the pound from appreciating. The average value of the curren
cies associated in the European “ snake” arrangement changed little
against the dollar.
The U .S . foreign trade deficit remained large in February, and
the average for the first 2 months of the year was sharply higher
than that for the fourth quarter of 1 9 7 6 . In the January-February
period, as compared with the fourth quarter, the value of imports
of foods rose sharply— as more coffee entered the country at higher
prices— and imports of a variety of other consumer goods increased.
The over-all value of exports declined slightly; exports of agricul
tural commodities were sustained— as their average unit values
advanced while the physical quantity declined— but exports of other
goods declined somewhat. Since the middle of 1 9 7 6 exports of
nonagricultural commodities had shown little net growth, reflecting
sluggishness in the economies of other major industrial countries.
At U .S. banks, growth in total credit was somewhat less rapid
in March than in February. Total loans expanded at an accelerated
pace, but holdings of Treasury securities increased much less than
in February and holdings of other securities declined. Over the
first quarter, expansion in total bank credit was greater than in
any other quarter in 2 Vi years.
Business credit demands remained generally strong. Business
loans at banks rose during March at about the average rate for
the preceding 5 months. At the same time the outstanding volume
of commercial paper issued by nonfinancial corporations declined,
as such corporations relied to a greater extent than in other recent
months on internal sources of funds and on the proceeds of the
sizable amount of securities sold in the capital market during the
month.
The narrowly defined money stock (M -l), which had increased
little in February, rose at an annual rate of about 6 per cent in
March. From the fourth quarter of 1 9 7 6 to the first quarter of 1 9 7 7 ,
M -l grew at a rate of about 4 3 per cent. Weekly data suggested
A
that M -l had expanded substantially in early April.
Reflecting the pick-up in growth of M -l, the annual rate of
growth in M-2 increased to about 8V4 per cent in March from about
6 % per cent in February. Inflows to banks of time and savings
deposits other than large-denomination C D ’s continued to slacken
in March, mainly because of a contraction in savings deposits held
565
566
Federal Reserve Bulletin □ June 1977
by State and local governments. Inflows of deposits to nonbank
thrift institutions also continued to slow, but the rate of growth
in M-3 edged up. From the fourth quarter of 1976 to the first
quarter of 1977, M-2 and M-3 grew at rates of about 9Vi and
11 per cent, respectively.
At its March meeting the Committee had decided that growth
in M -l and M-2 over the March-April period at annual rates within
ranges of 4 x to 8 V per cent and 7 to 11 per cent, respectively,
h
2
would be appropriate. It had judged that these growth rates were
likely to be associated with a weekly-average Federal funds rate
in the area of 4% to 4% per cent. The Committee had agreed
that if growth rates in the aggregates over the 2-month period
appeared to be deviating significantly from the midpoints of the
indicated ranges, the operational objective for the weekly-average
Federal funds rate should be modified in an orderly fashion within
a range of 4 lA to 5 X per cent.
A
Over most of the interval between the March and April meetings,
incoming data suggested that the 2-month growth rates for M -l
and M-2 would be well within their respective ranges. Conse
quently, the Manager of the System Open Market Account contin
ued to aim for a Federal funds rate in the area of 4% to 4 3 per
A
cent. Near the end of the period, however, it appeared that growth
in M -l would exceed the upper limit of its 2-month range and
that growth in M-2 would be in the upper part of its range. In
those circumstances, the Manager aimed for a Federal funds rate
of around 4 3 per cent.
A
Market interest rates changed little over most of the inter-meeting
period, but they generally moved lower late in the period when
the President’s intention to drop the tax rebates and related pay
ments from his fiscal program became known. Yields on mediumterm Treasury notes declined more than other rates, because market
participants had anticipated that most of the Treasury borrowing
in the second quarter to finance the rebates and related payments
would follow the pattern of recent borrowings and would be
concentrated in the medium-term area.
The Treasury raised $3.7 billion of new money in securities
markets during March, largely through sales of 2- and 4-year notes.
For the first quarter as a whole, the Treasury sold $14 billion of
marketable securities— considerably less than the $20 billion to $23
Record of Policy Actions of FOMC
billion it had projected in January. The difference was attributable
to several factors: The Federal deficit in the first quarter was not
so large as had been anticipated, chiefly because of a shortfall in
outlays; the Treasury sold substantially more nonmarketable se
curities than had been expected— primarily to State and local
governments undertaking advance refundings of their own securi
ties; and the Treasury had drawn down its cash balance to a level
at the end of March that was $3 billion below the amount projected
in late January. In early April the Treasury sold $4.5 billion of
short-dated cash-management bills in order to bridge a low point
in its cash balance prior to the mid-April date for tax payments.
In the corporate bond market the volume of new securities offered
publicly expanded more than seasonally during March, reflecting
large offerings by utilities— for the most part telephone companies.
For the first quarter of 1977 as a whole, however, offerings were
about the same as those for the final quarter of 1976 and were
below those for the first quarter of that year.
In the market for State and local government bonds, offerings
of new issues reached a record of $4 billion in March, and the
total for the first quarter substantially exceeded offerings in the
final quarter of 1976. In March, however, investment interest from
property-casualty insurance companies and from investment com
panies remained substantial, and yields on tax-exempt securities
moved lower during the month and in early April, even before
the withdrawal of the proposed rebate of Federal taxes. About
one-third of the new issues in March were associated with advance
refundings.
Interest rates on new commitments for primary conventional
home mortgages at savings and loan associations rose somewhat
during March and early April from recent lows in late February
and early March, as demands for mortgages remained strong. In
February outstanding commitments of savings and loan associations
to acquire mortgage loans had returned to record levels after having
edged down a little in January. Over the past two quarters the
ratio of commitments to total cash inflows at these institutions had
risen noticeably.
For the period immediately ahead, the principal new factor in
the outlook for credit demands was the prospective shift in the
position of the U .S. Treasury from a sizable net borrower to a
567
568
Federal Reserve Bulletin □ June 1977
tem porary repayer of debt. At the same tim e, how ever, business
dem ands for credit were still expected to expand as a result of
continuing im provem ent in econom ic activity. Projections of con
sum er expenditures im plied a continued high rate of growth in
consum er credit outstanding, and expansion of m ortgage debt was
anticipated to remain large. State and local governm ent borrow ing
was also expected to rem ain sizable.
In the discussion of the econom y at this m eeting, it was suggested
that for some time the situation in general had been strengthening,
and that— in the light of the housing starts figures for M arch, which
had been released just the day before— residential construction
activity m ight prove to be even stronger than had been projected
by the staff. It was em phasized that developm ents were taking place
in the sphere of governm ental econom ic policy that could have
im portant consequences for the course of econom ic activity and
prices— including the recent changes in the adm inistration’s fiscal
policy proposals, the P resident’s announcem ent on April 15 of a
series of m easures aimed at controlling and reducing inflation, and
the energy program to be presented to the C ongress on the day
after this m eeting.
W ith respect to the consequences of the changes in fiscal policy,
it was suggested that elim ination of the proposal to raise the
investm ent tax credit from 10 to 12 per cent was not of m uch
significance, because an increase of 2 percentage points would have
at best only a small effect on business fixed investm ent— especially
in view of the rate at which prices of plant and equipm ent were
rising. Insofar as an increase in the tax credit would add to
investm ent outlays, the effect of its elim ination was likely to be
offset by another consequence of the changes in fiscal policy
proposals: the favorable effect on interest rates to be expected from
the reduction in the prospective Federal deficit. It was observed
that business investm ent also would be encouraged by one of the
m easures proposed to reduce the rate of inflation— specifically, the
developm ent of procedures to speed up the issuance of construction
perm its by governm ent agencies.
W ithdraw al of the proposal for tax rebates was thought to be
of considerable significance. Some m em bers expected that this
change, especially in conjunction with the m easures aim ed at
reducing inflation, would contribute to im provem ent in business
Record of Policy Actions of FOMC
and consumer confidence and in that way would add strength to
the economic outlook.
The details of the energy program had not yet been announced,
but its probable major features had already been described in the
press. It was observed that the program was extensive and complex;
that its effects were difficult to appraise; and that uncertainties
would be heightened during the long period that was likely to be
consumed in legislating the actual measures. Although the need
for such a program appeared clear, the suggestion was made that
it could have some negative consequences for economic activity
in the short run— chiefly, perhaps, if uncertainties led to a dampen
ing of growth in business capital investment— and that over time
it would tend to exert some upward pressure on prices.
Attention was drawn to other potentially troublesome aspects
of the developing economic situation. Thus, one member com
mented that growth in nominal GNP over the quarters ahead at
the rate indicated in the staff projections— which did not take the
energy program into account— might well be accompanied by
considerable strain in financial markets. Another member suggested
that the economic expansion had become unbalanced in the sense
that growth in business fixed investment had lagged that in other
major sectors of demand. The question was raised whether in this
expansion— in contrast with earlier ones— an acceleration in busi
ness capital outlays might not be delayed until capacity utilization
reached a relatively high rate and shortages were developing. With
respect to the degree of balance during this upswing, it was also
pointed out that net exports had deteriorated sharply since 1975
and had exerted a drag on the expansion in over-all activity in
this country.
At this meeting the Committee reviewed its 12-month ranges
for growth in the monetary aggregates. At its January meeting the
Committee had specified the following ranges for growth over the
period from the fourth quarter of 1976 to the fourth quarter of
1977: M -l, 4% to 6 V per cent; M-2, 7 to 10 per cent; and M-3,
2
8 V to IIV 2 per cent. The associated range for growth in the bank
2
credit proxy was 7 to 10 per cent. The ranges being considered
at this meeting were for the period from the first quarter of 1977
to the first quarter of 1978.
In the discussion of the ranges for growth in the aggregates over
569
570
Federal Reserve B ulletin □ June 1977
the year ahead, m em bers of the Com m ittee were alm ost unanim ous
in believing that a reduction of some kind w ould be appropriate
at this time as another step toward the ultim ate objective of
achieving longer-run rates of m onetary expansion consistent with
general price stability. H ow ever, opinions differed as to the specific
reduction to be m ade.
In advocating a further reduction in the longer-run ranges for
m onetary grow th, a few m em bers noted that the econom ic situation
had strengthened over recent m onths and that less stim ulus from
m onetary policy was required now, even though the adm inistra
tio n ’s proposals for fiscal stimulus had been scaled dow n. At the
same tim e, it was observed, inflationary forces appeared to have
increased. One m em ber expressed the view that advances in prices
attributable to exogenous forces— such as an increase in the price
of oil— should not be fully accom m odated in establishing appro
priate rates of m onetary growth; but neither should they be wholly
unaccom m odated because that could create a high degree of m one
tary stringency.
In the current circum stances, it was observed, a further step in
the gradual process of reducing the longer-run ranges w ould m ake
a useful contribution to rebuilding confidence in econom ic pros
pects. It was suggested, m oreover, that continuation of that process
would be consistent with the P resident’s announced objective of
achieving a 2-percentage-point reduction in the rate of inflation
by the end of 1979.
In support of some reduction in the longer-run ranges, it was
noted that from the first quarter of 1976 to the first quarter of 1977
growth in M -l— at 6.2 per cent— was more rapid than in any
four-quarter period since April 1975 when the Com m ittee had
begun to adopt 1-year ranges, and that rates of growth for M-2
and M-3 had been relatively high as well. Over the m ost recent
two quarters, growth in M -l— at an annual rate of about 5% per
cent— had been well within its range, but growth in both M -2 and
M-3 had been above the upper limits of their ranges.
Partly because of the uncertainties associated with the energy
program , there was little sentim ent for making m ore than small
reductions in the longer-run ranges at this time. M ost m em bers
were inclined to favor retaining the existing AVi to 6 V per cent
2
range for M -l while reducing the upper limit— in some cases, both
Record of Policy Actions of FOMC
limits— of the ranges for M-2 and M-3 by V of a percentage point.
2
In this connection, it was noted that growth in the interest-bearing
deposits included in M-2 and M-3 had slackened in recent months.
However, there also was some sentiment for reducing the lower
limit of the range for M -l by V of a percentage point— either
2
alone or in combination with some reduction in the ranges for M-2
and M-3.
At the conclusion of its discussion the Committee arrived at a
consensus calling for retention of the existing range for M -l and
reductions of V of a percentage point in the upper limits of the
2
ranges for M-2 and M-3. The ranges thus were 4 V to 6 V per
2
2
cent for M -l, 7 to 9 x per cent for M-2, and 8 V to 11 per cent
h
2
for M-3. The associated range for the rate of growth in the bank
credit proxy was 7 to 10 per cent. It was agreed that the longer-run
ranges, as well as the particular aggregates for which such ranges
were specified, would be subject to review and modification at
subsequent meetings. It was also understood that short-run factors
might cause growth rates from month to month to fall outside the
ranges contemplated for the year ahead.
The Committee adopted the following ranges for rates of growth
in monetary aggregates for the period from the first quarter of 1977
to the first quarter of 1978: M -l, 4V6 to 6 V per cent; M-2, 7 to
2
9 V per cent; and M-3, 8 V to 11 per cent.
2
2
Votes for this action: Messrs. Burns, Volcker,
Coldwell, Gardner, Guffey, Jackson, Lilly, Mayo,
Morris, Roos, and Wallich. Vote against this action:
Mr. Partee.
Mr. Partee— although he agreed in principle with the longer-term
objective of reducing the ranges— dissented from this action be
cause he opposed any adjustment at this particular juncture. He
noted that the administration had just withdrawn its proposal for
the tax rebate; that the forthcoming energy program, by raising
the price structure, might tend to dampen economic expansion;
and that very large increases in the velocity of the various monetary
aggregates would have to occur over the next year if nominal GNP
were to grow at the rate projected by the staff and good progress
were thus to be made in reducing unemployment.
As to policy for the period immediately ahead, the Committee
571
572
Federal Reserve B ulletin □ June 1977
members were willing to tolerate growth in the monetary aggregates
over the April-May period within ranges that were higher than
those adopted for the year ahead because of the expectation that
the forces contributing to rapid expansion in M -l in early April
would prove to be transitory and that the bulge in growth for the
month as a whole would for the most part be offset by slower
growth later on.
Members of the Committee did not differ greatly in their prefer
ences for ranges of growth for the monetary aggregates over the
April-M ay period. For M -l, most of them favored a range of 6
to 10 per cent, but a number expressed a preference for a slightly
lower range— specifically, 5% to 9 x per cent. For M-2, -most
h
members favored a range of 8 to 12 per cent; a few preferred
IVi to 11V2 per cent.
Almost all of the members favored directing operations initially
toward the objective of maintaining the Federal funds rate at its
current level of about 4% per cent, but one or two members
suggested that initial operations be directed toward achieving a
slightly higher rate. With respect to the degree of leeway for
operations during the inter-meeting period in the event that the
aggregates appeared to be deviating significantly from the midpoints
of the specified ranges, almost all of the members preferred to
specify a range for the funds rate of 4Vi to 5 X per cent. However,
A
one expressed a preference for a range of 4 1 to 5% per cent and
/*
another for 4 Vi to 5 Vi per cent. The member who proposed the
latter range also advocated directing operations toward moving the
funds rate slowly toward 5 per cent even if the aggregates appeared
to be growing at rates near the midpoints of their specified ranges,
primarily because he thought that the recent acceleration in growth
of M -l might reflect fundamental forces to a greater extent than
was generally assumed.
At the conclusion of the discussion the Committee decided that
growth in M -l and M-2 over the April-M ay period at annual rates
within ranges of 6 to 10 per cent and 8 to 12 per cent, respectively,
would be appropriate. It was understood that in assessing the
behavior of the aggregates, the Manager should continue to give
approximately equal weight to the behavior of M -l and M-2.
In the judgment of the Committee, such growth rates of the
aggregates were likely to be associated with a weekly-average
Record of Policy Actions of FOMC
Federal funds rate of about 4 % per cent. The C om m ittee agreed
that if growth rates of the aggregates over the 2-m onth period
appeared to be deviating significantly from the m idpoints of the
indicated ranges, the operational objective for the w eekly-average
Federal funds rate should be modified in an orderly fashion within
a range of 4Vi to 5% per cent. As custom ary, it was understood
that the Chairm an m ight call upon the Com m ittee to consider the
need for supplem entary instructions before the next scheduled
m eeting if significant inconsistencies appeared to be developing
among the C om m ittee’s various objectives.
The following dom estic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that growth
in real output of goods and services increased in the first quarter
from the reduced pace in the fourth quarter of 1976. In March
industrial output, retail sales, and employment expanded substan
tially further. Although the labor force also increased sharply, the
unemployment rate declined from 7.5 to 7.3 per cent. The wholesale
price index for all commodities again rose substantially; increases
were particularly sharp among farm products and foods, and there
were sizable advances for many industrial commodities. The index
of average wage rates rose in the first quarter of 1977 at a somewhat
faster pace than it had on the average during 1976, reflecting largely
an increase in the minimum wage.
The average value of the dollar against leading foreign currencies
has declined somewhat over the past month, returning to about the
level at the beginning of the year. Demand for the Japanese yen
and the U.K. pound intensified. The U.S. foreign trade deficit
continued large in February.
M -1 grew at a moderate pace in March but increased substantially
in early April. At banks and thrift institutions, inflows of time and
savings deposits other than large-denomination CD’s continued to
slacken in March. Market interest rates declined considerably in
mid-April, after having changed little since mid-March.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster bank reserve and other
financial conditions that will encourage continued economic expan
sion, while resisting inflationary pressures and contributing to a
sustainable pattern of international transactions.
Growth in M -l, M-2, and M-3 within ranges of 4 x to 6 V per
h
2
cent, 7 to 9Vi per cent, and 8 V to 11 per cent, respectively, from
2
573
574
Federal Reserve Bulletin □ June 1977
the first quarter of 1977 to the first quarter of 1978 appears to
be consistent with these objectives. These ranges are subject to
reconsideration at any time as conditions warrant.
The Committee seeks to encourage near-term rates of growth in
M-l and M-2 on a path believed to be reasonably consistent with
the longer-run ranges for monetary aggregates cited in the preceding
paragraph. Specifically, at present, it expects the annual growth rates
over the April-May period to be within the ranges of 6 to 10 per
cent for M-l and 8 to 12 per cent for M-2. In the judgment of
the Committee such growth rates are likely to be associated with
a weekly-average Federal funds rate of about 4 3 per cent. If, giving
A
approximately equal weight to M-l and M-2, it appears that growth
rates over the 2-month period will deviate significantly from the
midpoints of the indicated ranges, the operational objective for the
Federal funds rate shall be modified in an orderly fashion within
a range of 4 Vi to 5Va per cent.
If it appears during the period before the next meeting that the
operating constraints specified above are proving to be significantly
inconsistent, the Manager is promptly to notify the Chairman who
will then decide whether the situation calls for supplementary
instructions from the Committee.
Votes for this action: Messrs. Burns, Volcker,
Coldwell, Gardner, Guffey, Jackson, Lilly, Mayo,
Morris, Partee, Roos, and Wallich. Votes against
this action: None.
Subsequent to the meeting, on May 5, nearly final estimates
indicated that in April M -l had grown at a record annual rate of
19.4 per cent and that M-2 had grown at the substantial rate of
13.0 per cent. For the April-M ay period staff projections suggested
that the annual rate of growth in M -l would be well above the
upper limit of the 6 to 10 per cent range specified by the Committee
in the next-to-last paragraph of the domestic policy directive issued
at the April meeting. Growth in M-2 for the 2-month period was
projected to be close to the midpoint of the Committee’s range
of 8 to 12 per cent for that aggregate.
The Federal funds rate had averaged 5.15 per cent in the
statement week ended May 4, about 40 basis points above the
average for the preceding 3 weeks. The Manager of the System
Open Market Account was currently aiming at a funds rate of 5 lA
Record of Policy Actions of FOMC
per cent, the upper limit of the inter-meeting range specified in
the directive.
Against that background, Chairman Burns recommended on May
5 that the upper limit of the range for the Federal funds rate be
increased to 5 V2 per cent, on the understanding that the Manager
would use the additional leeway only if new data becoming avail
able before the meeting scheduled for May 17 suggested that the
aggregates were strengthening significantly further on balance.
On May 6, 1977, the Committee modified the inter-meeting range
for the Federal funds rate specified in the next-to-last paragraph
of the domestic policy directive issued on April 19, 1977, by
increasing the upper limit from 5% to 5 x per cent.
h
Votes for this action: Messrs. Burns, Volcker,
Coldwell, Gardner, Guffey, Jackson, Lilly, Morris,
Partee, Roos, Wallich, and Winn. Votes against this
action: None. Absent and not voting: Mr. Mayo.
(Mr. Winn voted as alternate for Mr. Mayo.)
*
*
*
*
*
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board’s Annual Report,
are released about a month after the meeting and are subsequently published in
the B u l l e t i n .
575
577
Law Department
Statutes, regulations, interpretations, and decisions
e m p l o y e e r e s p o n s ib il it ie s
AND CONDUCT
The Board of Governors has amended its rules
of Employee Responsibilities and Conduct to ex
pand the number of positions for which statements
of employment and financial interests are required.
Effective May 26, 1977, section 264.735-8(a)
is amended to read as follows:
and avoid employee involvement in a possible
conflict-of-interest situation.
>
«
S
f
"
APPENDIX A
G eneral
S e c tio n
264.735-8 —
S ta te m e n ts
o f E m p lo y m e n t a n d F in a n c ia l I n t e r e s t s
(a) EM PLOYEES REQUIRED TO SUBM IT
STATEMENTS. Except as provided in paragraph
(b) of this section, statements of employment and
financial interests shall be filed by:
(1) Employees receiving compensation equiva
lent to GS-13 or above whose positions are identi
fied in Appendix A to this Part by reason of
meeting the following criteria:
(i) positions the incumbents of which are
responsible for making a Government decision or
taking a Government action in regard to:
(A) contracting or procurement;
(B) administering or monitoring grants or
subsidies;
(C) regulating or auditing private or other
non-Federal enterprise; or
(D) other activities where the decision or
action has an economic impact on the interests of
any non-federal enterprise.
(ii) positions which the Board determines
require the incumbent to report employment and
financial interests in order to carry out the purpose
of law, executive order, this Part, and the Board’s
regulations.
(2) Employees receiving compensation below
the equivalent to GS-13 whose positions otherwise
meet the criteria in subparagraph (1) when the
inclusion of the positions in Appendix A has been
specifically justified by the Board in writing to the
Civil Service Commission as an exception that is
essential to protect the integrity of the Government
Each Head, Associate, Deputy or Assistant Head of
a Division or Office of the Board (regardless of
specific title), Research Officer or Assistant to the
Board.
D ivision of International Finance
Assistant to the Director
Chief, Trade and Financial Studies Section
Chief, International Banking Section
Chief, U .S. International Transactions Section
Chief, Financial Markets Section
*Economist, Financial Markets Section
Chief, World Payments and Economic Activity Sec
tion
Chief, Quantitative Studies Section
Chief, International Development Section
D ivision of Banking Supervision and R egulation
Chief, Banking Activities, Bank Holding Companies
Section
Chief, Nonbanking Activities, Bank Holding Com
panies Section
*Review Examiner, Bank Holding Companies Section
Chief, Financial Institutions Supervisory Section
Senior Attorney, Financial Institutions Supervisory
Section
Senior Staff Assistant, Financial Institutions Supervi
sory Section
Chief, Trust Activities Section
Trust Review Examiner, Trust Activities Section
Chief, Bank Holding Company Analysis Section
*Financial Analyst, Bank Holding Company Analysis
Section
Chief Attorney, Securities Credit Regulation
Senior Attorney, Securities Credit Regulation
Accountant Analyst, State Bank Securities/Account
ing Section
*Grade 13 and above.
578
Federal Reserve Bulletin □ June 1977
*F o r e ig n
B a n k in g
S u p e r v is o r y
A n a ly s t,
E x a m in e r,
F o re ig n
F o re ig n
B a n k in g
B a n k in g
S e c tio n
Office of Board Members
S e c tio n
A d m in is tr a tiv e
Division of Administrative Services
S ta ff
A s s is ta n t
to
th e
C h a irm a n
A s s is ta n t
E c o n o m is t
P ro g ra m
A n a ly s t/ C o n s tru c tio n
C h ie f
o f
P la n n in g
C h ie f
o f
P ro c u re m e n t
Office of Staff Director for Management
A s s is ta n t
Office of the Controller
C h ie f,
F in a n c e
a n d
A c c o u n tin g
S e c tio n
F a ir
C h ie f,
E q u a l
C r e d it
S ta ff
C h ie f,
C o m p lia n c e
S e n io r
P r a c tic e s
S e c tio n
S e n io r
S e c tio n
S e c tio n
C h ie f,
* E c o n o m is t,
C h ie f,
P ro je c t
S e c tio n
C a p ita l
M a rk e ts
S e c tio n
G o v e rn m e n t
F in a n c e
C h ie f,
M o rtg a g e
a n d
C h ie f,
F in a n c ia l
S tru c tu re
*E c o n o m is t,
C h ie f,
C o n s u m e r
F in a n c ia l
a n d
S y s te m s ,
o f
M a th e m a tic a l/ S ta tis tic a l
P ro je c t A n a ly s t/ P r o g r a m m e r -C a p ita l
e m a tic a l/ S ta tis tic a l
S e c tio n
S e c tio n
M a rk e ts ,
M a th
S e c tio n
C h ie f,
B a n k
H o ld in g
C h ie f,
F in a n c e
S e c tio n
S tru c tu re
E c o n o m e tric
D e p o s it
S e c tio n
S e c tio n
F in a n c e
M a th e m a t
S e c tio n
A n a ly s t/ P ro g ra m m e r-T ra n s m is s io n s
E d ite d
S e c tio n
M a th e m a t
S e c tio n
A n a ly s t/ P ro g ra m m e r-M o d e ls ,
ic a l/ S ta tis tic a l
M a rk e ts
S e c tio n
A n a ly s t/P ro g ra m m e r-R e s e rv e s ,
P ro je c t
G o v e rn m e n t
*E c o n o m is t,
A s s is ta n t
ic a l/ S ta tis tic a l
S e c tio n
B a n k in g
C a p ita l
S ta ff
M a th e m a tic a l/ S ta tis tic a l
P ro je c t
B a n k in g
* E c o n o m is t,
A s s is ta n t
C h ie f,
O p p o rtu n ity
Division of Research and Statistics
C h ie f,
C o o r d in a tio n
Division of Data Processing
A tto rn e y
C r e d it
P ro g ra m
E c o n o m is t
Division of Consumer Affairs
C h ie f,
fo r
Office of Staff Director for Monetary Policy
D a ta
P ro d u c tio n
C o m p a n y
A p p lic a tio n s
S e c tio n
S e c tio n
S e c tio n
C o m p u te r
A p p lic a tio n s
S e c tio n
* E c o n o m is t,
E c o n o m e tric
a n d
C o m p u te r
A p p lic a tio n s
S e c tio n
C h ie f,
N a tio n a l
C h ie f,
W a g e s ,
In c o m e
P ric e s
C h ie f,
B u s in e s s
C h ie f,
F in a n c ia l
C h ie f,
S p e c ia l
C h ie f,
F lo w
o f
S e c tio n
a n d
P ro d u c tiv ity
C o n d itio n s
S tu d ie s
S tu d ie s
F u n d s
S e c tio n
S e c tio n
S e c tio n
S e c tio n
S e c tio n
Division of Federal Reserve
Bank Examinations and Budgets
M a n a g e r,
*S e n io r
F in a n c ia l
F in a n c ia l
E x a m in a tio n s
S e c tio n
E x a m in e r
Division of Federal Reserve Bank Operations
A r c h ite c t,
B u ild in g
M a n a g e r,
L e n d in g ,
P la n n in g
M a n a g e r,
P a y m e n ts
C r e d it
S e c tio n
a n d
M e c h a n is m
C a s h
S e rv ic e s
S e c tio n
P ro g ra m
M a n a g e r
fo r
E F T S
O p e ra tio n s
P ro g ra m
M a n a g e r
fo r
E F T S
P la n n in g
Legal Division
S e n io r
A tto rn e y
RULES REGARDING
DELEGATION OF AUTHORITY
The Board of Governors has amended its Rules
Regarding Delegation of Authority by revoking
certain previous delegations and by delegating new
functions to the Director of the Division of Bank
ing Supervision and Regulation and to the Federal
Reserve Banks.
Effective May 9, 1977, 12 C.F.R. 265.1a is
amended by deleting paragraph (a) and redesig
nating paragraphs (b) and (c) as (a) and (b),
respectively. (12 U.S.C. 248(k)).
Effective May 26, 1977, Part 265 is amended
as follows:
1.
A new paragraph (23) is added to § 265.2(c)
to read as set forth below:
Section 265.2—Specific
F unctions D elegated to Board
E mployees and to F ederal R eserve B anks.
*Grade 1 and above.
3
*
*
*
L aw D epartm ent
579
(f) EACH FEDERAL RESERVE BANK is author
(c)
THE DIRECTOR OF THE DIVISION OF
ized:
BANKING SUPERVISION AND REGULATION (or,
in the Director’s absence, the Acting Director) is
authorized:
*
*
*
*
*
(35) With the prior approval of both the
Director of the Board’s Division of Banking
(23) With the prior concurrence of the appro
Supervision and Regulation and the General
priate Federal Reserve Bank and the General
Counsel of the Board, to enter into a written
Counsel of the Board, to act to refuse an applica
tion to the Board to stay, modify, terminate or
agreement with a bank holding company or any
nonbanking subsidiary thereof or with a State
set aside any effective cease and desist order
member bank concerning the correction of an
previously issued by the Board pursuant to section
8(b) of the Federal Deposit Insurance Act or any
unsafe or unsound practice in conducting the busi
ness of such bank holding company, non-banking
written agreement between the Board or the Re
subsidiary or State member bank and concerning
serve Bank and a bank holding company or any
nonbanking subsidiary thereof or a State member
the correction of any violation of law, rule or
regulation incident to such an unsafe or unsound
bank. (12 U.S.C. § 1818(b)).
2. A new paragraph (35) is added to § 265.2(f) practice. (12 U.S.C. 248(a), 321, 324, 325, 330,
1844; 12 CFR § 208.8).
to read as set forth below:
*
*
*
*
*
BANK HOLDING COMPANY AND
BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS
O r d e r s U n d e r S e c t io n 3
of B a n k H o l d in g C o m p a n y A ct
Mahaska Investment Company,
Oskaloosa, Iowa
O rder D enying Formation of
Bank H olding Com pany
Mahaska Investment Company, Oskaloosa,
Iowa, has applied for the Board’s approval under
§ 3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) of formation of a bank
holding company through acquisition of 51.47 per
cent of the voting shares of Farmers Savings Bank,
Fremont, Iowa (“ Bank” ). Applicant has also ap
plied, pursuant to the Board’s Regulation Y, for
permission to continue to engage directly in the
activity of leasing real property or acting as agent,
broker or advisor in leasing such real property,
and to engage indirectly, through its wholly-owned
subsidiary, MIC Leasing Co., Oskaloosa, Iowa
(“ MIC” ), in the activity of leasing personal prop
erty or acting as agent, broker or advisor in leasing
such personal property. Such activities have been
determined by the Board to be closely related to
banking [12 CFR § 225.4(a)(6)(a) and (b)].
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with §§ 3
and 4 of the Act (42 Federal R eg ister 3876). The
time for filing comments and views has expired
and the applications and all comments received
have been considered in light of the factors set
forth in § 3(c) of the Act, and the considerations
specified in § 4(c)(8) of the Act.
Applicant, a corporation organized under the
laws of Iowa, is currently engaged, either directly
or indirectly, in the leasing of real and personal
property and brokering of credit life, accident and
health insurance and mortgage guaranty insurance
for mobile homes.1 Upon acquisition of Bank
($12.4 million in deposits), Applicant would con
trol the 276th largest commercial bank in Iowa,
with approximately 0.1 per cent of the total de
posits in commercial banks in the State.2
Bank is the third largest of the five commercial
banks in the Mahaska County banking market and
controls approximately 13.5 per cent of the total
A p p lica n t has indicated that it intends to terminate all of
its insurance activities if these applications are approved.
2 Unless otherwise indicated, all banking data are as of June
30, 1976.
580
Federal Reserve Bulletin □ June 1977
commercial bank deposits in the relevant banking
market.3 In analyzing the competitive effects of
this proposal, it is also necessary to consider
Applicant’s affiliate relationship with Mahaska
State Bank, Oskaloosa, Iowa (“ Mahaska Bank” ),
the largest commercial banking organization in the
market. Mahaska Bank holds total deposits of
$44.1 million, representing 47.7 per cent of the
deposits in the market, and is more than twice
the size of the next largest competitor in the
market. In view of the nature and scope of Appli
cant’s affiliation with Mahaska Bank, the Board
is of the view that competitive effects of this
proposal are such that denial of the application
is warranted.
Applicant was originally incorporated in Febru
ary 1973 as a wholly-owned subsidiary of Ma
haska Bank for the purpose of leasing a site for
a new drive-in facility to that bank. Subsequently,
during November 1973, as a result of a directive
by the Iowa Superintendent of Banking, Mahaska
Bank was required to divest of Applicant and it
caused Applicant’s shares of be spun-off to the
then shareholders of Mahaska Bank. Since that
time, there has been a close identity of share
holders, as well as a commonality of management,
involving Mahaska Bank and Applicant. At the
present time, four of Applicant’s six directors
serve as directors of Mahaska Bank and 126 of
Applicant’s 133 shareholders collectively own 100
per cent of the shares of Mahaska Bank.
While this proposal does not itself involve Ma
haska Bank, the Board does not believe that it
would be appropriate to ignore the identity of
interests between Applicant and Mahaska Bank in
assessing the competitive effects of a proposal that
seeks to bring Bank into the affiliated group
through the formation of a bank holding company.
Applicant’s president, who also serves in the same
capacity with Mahaska Bank, acquired in an indi
vidual capacity approximately 52 per cent of the
shares of Bank in 1976 by means of a loan from
an unaffiliated bank. As part of this proposal,
Applicant would assume the outstanding indebt
edness (as well as accrued interest) in return for
the shares now held by its president. Thereafter,
as a corporation, Applicant would proceed to retire
the acquisition debt from dividends from Bank and
earnings from its nonbanking activities.
Section 3(c) of the Bank Holding Company Act
3 The relevant geographic market for purposes o f analyzing
the com petitive effects o f the proposed transaction is approxi
mated by M ahaska C ounty, Iowa.
requires the Board to consider whether any pro
posed acquisition by a bank holding company (1)
would further the monopolization or attempted
monopolization of a banking market, or (2) may
substantially lessen competition or tend to create
a monopoly in any banking market. Where, as
here, a proposed acquisition involves the use of
a holding company by a group of individuals to
acquire control of a bank that is a competitor of
another bank under the control of essentially the
same individuals, the Board believes it must apply
these standards.4
In the Board’s view, the subject proposal pre
sents a compelling case where the holding com
pany form is being used to further an anticompeti
tive arrangement. Under this proposal, two banks
that up to last year were independent banks com
peting as the first and third largest banks in the
Mahaska County market would be brought under
common control through the use of a holding
company structure. In view of the sizes of the
organizations involved and their collective position
in the Mahaska market (together the two banks
hold 61.2 per cent of the market’s deposits), the
Board is of the opinion that approval of this
proposal would have significant adverse competi
tive effects. While denial of this proposal may not
immediately result in a complete termination of
the present situation (Applicant’s president would
continue to own Bank), it would preserve the
distinct possibility that Bank could again become
an independent organization in the future. Ap
proval, on the other hand, would almost certainly
foreclose that possibility since, as a result of the
flexibility afforded by the holding company struc
ture, Applicant would appear capable of servicing
its acquisition debt and, in addition, a mutuality
of interest between Mahaska Bank and Bank
would likely be established.
On the basis of the foregoing and the facts of
record, the Board concludes that approval of this
application would have significant adverse com
petitive effects. Accordingly, under the standards
set forth in the Bank Holding Company Act, the
proposal may not be approved unless the adverse
competitive factors are clearly outweighed by
other public interest considerations reflected in the
record.
The financial and managerial resources and fu
4 Even in the absence of any use of the holding com pany
form , the standards o f §§ 1 and 2 of the Sherman A ct may
apply to the acquisition by a group of individuals o f control
of a bank that is a com petitor o f another bank controlled by
essentially the sam e group.
L aw D epartm ent
ture prospects of Applicant, which are dependent
upon Bank, MIC, and Applicant’s leasing activi
ties, are considered satisfactory and generally
consistent with approval of the subject application.
Therefore, considerations relating to banking fac
tors are consistent with approval of the application.
Applicant plans changes and improvements in the
form of both physical expansion of Bank’s facili
ties and new and additional banking services. The
Board finds that considerations relating to the
convenience and needs of the community lend
some weight toward approval but, in the Board’s
view, do not outweigh the significant adverse
findings with respect to competitive consid
erations. Accordingly, it is the Board’s judgment
that approval of this application would not be in
the public interest and that the application should
be denied.
On the basis of all facts of the record, and in
light of the factors set forth in § 3(c) of the Act,
it is the Board’s judgment that consummation of
the proposal to form a bank holding company
would not be in the public interest and that the
application should be, and is hereby, denied for
the reasons summarized herein.5
By order of the Board of Governors, effective
May 11, 1977.
V o tin g
G o v e rn o rs
an d
fo r
th is
a c tio n :
V ic e
n o t v o tin g : C h a irm a n
B u rn s
(Signed)
a n d
G a rd n e r
L illy .
an d
A b s e n t
G o v e rn o r Ja c k s o n .
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
[s e a l ]
M ic h ig a n
C h a irm a n
W a llic h , C o ld w e ll, P a rte e , a n d
N a tio n a l
C o r p o r a tio n ,
581
has expired, and the Board has considered the
application and all comments received, including
those submitted by the Metropolitan National Bank
of Farmington, Farmington Hills, Michigan
(“ Protestant” ), in light of the factors set forth in
§ 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the second largest banking organi
zation in Michigan, controls 15 banks1 with ag
gregate deposits of $3.3 billion,2 representing 10.3
per cent of the total commercial bank deposits in
the State.3 Since Bank is a proposed new bank,
no existing competition between Bank and Appli
cant’s subsidiary banks would be eliminated, nor
would Bank’s acquisition by Applicant cause any
immediate increase in banking concentration in the
relevant banking market or cause an increase in
Applicant’s share of commercial bank deposits in
the State.
Bank, which is currently in formation, has re
ceived preliminary charter approval from the
Comptroller of the Currency and is to be located
in the city of Farmington Hills, Michigan, in the
west-central portion of the relevant banking mar
ket.4 Of the 46 banking organizations (67 banks)
in this market, Applicant ranks as the fourth largest
controlling deposits of approximately $1.4 billion,
representing 8.5 per cent of the market deposits.
Applicant established two branches of a subsidiary
bank in Farmington Township prior to the incor
poration of the Township into the city of Far
mington Hills in 1973.5 Michigan banking law
restricts branching within incorporated areas to
banks that are headquartered in such an area,
although branches of banks that were located in
areas prior to their incorporation but whose parent
Bloomfield Hills, Michigan
O rder A pprovin g A cquisition of Bank
Michigan National Corporation, Bloomfield
Hills, Michigan (“ Applicant” ), a bank holding
company within the meaning of the Bank Holding
Company Act, has applied for the Board’s ap
proval under § 3(a)(3) of the Act (12 U.S.C. §
1842(a)(3)) to acquire all of the voting shares (less
directors’ qualifying shares) of Michigan National
Bank-Farmington, Farmington Hills, Michigan
(“ Bank” ), a proposed new 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
5D enial o f A pplicant’s § 3(a)(1) application renders m oot
Board action on the accom panying § 4 (c) (8) application.
1A pplicant has applied to the Board to acquire M ichigan
N ational Bank-Sterling, Sterling H eights, M ichigan, a pro
posed new bank.
2State banking data are as o f D ecem ber 31, 1976; and
relevant banking market data are as of June 30, 1976.
3In addition, A pplicant also controls, directly or indirectly,
three nonbank subsidiaries: a sm all business investm ent com
pany; a leasing com pany; and an audit service. Furthermore,
under authority delegated to the Federal R eserve Bank of
C hicago, A pplicant’s application to acquire a second , de novo
leasing com pany w as approved on March 28 , 1977.
4 The relevant banking market for the D etroit area has re
cently been defined by the Board in its Order of M ay 12, 1977,
denying the application of N ational D etroit Corporation, D e
troit, M ichigan, to acquire The Brighton State B ank, Brighton,
M ichigan (42 F ed R eg . 25531; 63 Fed. R es. B u l l e t i n ) . The
market is approxim ated by M acom b, Oakland, and W ayne
Counties, M ichigan, and 33 cities and tow nships from the
M ichigan counties of St. Clair, Lapeer, L ivingston, W ash
tenaw, and M onroe. (T hese cities and tow ns are specified in
A ppendix A of the B oard’s Order o f M ay 12, 1977.)
5Prior to incorporation, six other banks in the relevant
market had also branched into Farmington T ow nship.
582
Federal Reserve Bulletin □ June 1977
banks are headquartered elsewhere are entitled to
remain there. Given the State’s bank branching
restrictions, Applicant, headquartered in Bloom
field Hills, Michigan, has applied to expand its
operations in Farmington Hills by introducing a
new bank into this portion of the market.
In its analysis of the subject application, the
Board has considered the comments of Protestant,
the only banking organization headquartered in
Farmington Hills. In summary, Protestant con
tends that consummation of the subject proposal
would essentially result in a substantial lessening
of competition in this portion of the relevant mar
ket by enabling Applicant to create a monoply of
banking services therein; that the city is already
overbanked; and that Applicant has substantially
overstated the potential growth rate of the city’s
population and thus has overstated the city’s pres
ent and future banking needs.6
The Board has analyzed the records of the
hearing held in connection with Bank’s charter
application, the other written submissions of Pro
testant, and the responses thereto by Applicant.
For the reasons set forth below, it is the Board’s
judgment that the issues raised by Protestant do
not warrant denial of the application.7
In the Board’s judgment, the addition of a
banking competitor in the Farmington Hills portion
of this banking market is procompetitive and
would not, as Protestant contends,
. . result
in a substantial lessening of competition. ’’ Nor can
the Board concur in Protestant’s contention that
consummation of the proposal would create a
monopoly for Applicant since, in addition to the
presence of Applicant and Protestant, there are
branches of six other banks in Farmington Hills,
and the opportunity for de novo entry into this
portion of the banking market remains open to
6In support o f its contentions, Protestant introduced, inter
alia, (a) the transcript o f a hearing before the D eputy R egional
Administrator o f the Office o f the Comptroller o f the Currency
dated January 16, 1975, when Protestant argued against the
preliminary chartering o f B ank, and (b) a privately co m m is
sioned market analysis o f the present and future banking needs
of Farmington H ills.
7Protestant, in its original subm ission, requested that the
Board hold a hearing on the application. Under § 3(b) o f the
A ct, the Board is required to hold a hearing only when the
primary supervisor o f the bank to be acquired recom m ends
disapproval o f the application (12 U .S .C . § 1842 (b)). In this
case, the Comptroller o f the Currency issued a preliminary
charter o f approval on October 2 1 , 1975, and renew ed the
life o f the charter on A ugust 2 5 , 1976 to extend until July
21, 1977. The Comptroller has at no tim e recom m ended that
the application be denied. T hus, there was no statutory re
quirement that a hearing be held. B y letter dated March 10,
1977, Protestant w ithdrew its request for a formal hearing.
other banking organizations. Furthermore, even
using Protestant’s conservative figures of popula
tion growth in the Farmington Hills area, the
anticipated growth rate over the next two decades
and beyond is substantially greater than the State
averages, and the average family income level is
among the highest of any area in the relevant
market. Having considered the comments of the
Protestant and on the basis of all of the facts above
and other facts of record, the Board concludes that
the relevant market, including that portion com
prising Farmington Hills, would continue to sup
port the existing banking organizations as well as
the proposed new Bank, and that consummation
of the proposed acquisition would not have an
adverse effect upon competition in any portion of
the relevant market. Furthermore, Applicant’s ac
quisition of Bank can be reasonably expected to
stimulate competition in this market by introducing
an additional banking alternative without causing
a significant adverse effect upon any of the existing
banks in the market. Therefore, for the reasons
summarized above, the Board concludes that
competitive considerations are consistent with ap
proval.
The financial and managerial resources of Ap
plicant and its subsidiary banks are generally
satisfactory, particularly in view of Applicant’s
plans to inject capital into, and retain earnings
from, certain subsidiary banks.8 Given Applicant’s
satisfactory management, favorable earnings and
strengthening financial and capital resources, Ap
plicant’s future prospects appear favorable. As a
proposed new bank, Bank has no financial or
operating history; however, based upon Bank’s
planned financial resources, management, capital
ization and expected earnings, Bank’s future
prospects as a subsidiary of Applicant appear
favorable. Thus, considerations relating to banking
factors are consistent with approval of the appli
cation.
Bank will serve as an additional full service
banking alternative to the Farmington Hills area,
8 In connection with its formation as a bank holding com
pany, A pplicant indicated to the Board its plan for raising
capital. T he plan dated M ay 22 , 1972, contem plated raising
$10 m illion by the issuance of equity securities “ if the market
for equity securities is at or above present index le v e ls .” D ue
to the econ om ic conditions in the market surrounding the sale
of equity securities, Applicant has requested relief from this
com m itm ent. At the present tim e, though, the Board has not
w aived the requirement that Applicant raise the subject $10
m illion. See the B oard’s statement regarding A pplicant’s pro
posed capital im provem ent plan in the B oard’s statement ac
com panying its Order o f A ugust 3, 1972, 58 Fed. R es. B u l
l e t i n 804, 806-807 (1972).
L aw D epartm ent
offering selected week-day evening and Saturday
banking hours. Furthermore, affiliation with Ap
plicant will enable Bank to make available, on a
correspondent or referral basis, a variety of highly
specialized banking services. Accordingly, these
considerations relating to the convenience and
needs of the community to be served lend some
weight toward approval of the application. It is
the Board’s judgment that consummation of the
proposed acquisition would be in the public inter
est and that the application should be approved.
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 nor (b) later than three months after
that date, and (c) Michigan National Bank-Farmington, Farmington Hills, Michigan, shall be
open for business not later than six months after
the effective date of this Order. Each of the periods
described in (b) and (c) may be extended for good
cause by the Board, or by the Federal Reserve
Bank of Chicago pursuant to delegated authority.
By order of the Board of Governors, effective
May 27, 1977.
V o tin g
n o rs
fo r
G a rd n e r,
A b s e n t
a n d
th is
a c tio n :
W a llic h ,
n o t
v o tin g :
C h a irm a n
C o ld w e ll,
G o v e rn o r
(Signed)
[s e a l ]
B u rn s
a n d
Ja c k s o n ,
an d
G o v e r
L illy .
P a rte e .
Ruth
A.
R e is t e r ,
A ssistan t Secretary of the Board.
National Detroit Corporation,
Detroit, Michigan
O rder D enying A cquisition of Bank
National Detroit Corporation, Detroit, Michi
gan, 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 The Brighton
State Bank, Brighton, Michigan (“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received, including
those of two shareholders of Bank opposing the
proposal, in light of the factors set forth in § 3(c)
of the Act (12 U.S.C. § 1842(c)).
Applicant, the largest bank holding company in
Michigan, controls five banks with aggregate de
583
posits of approximately $5.0 billion, representing
16.3 per cent of the total commercial bank deposits
in the State.1 Acquisition of Bank ($54.9 million
in deposits) would not significantly increase the
concentration of banking resources in Michigan;
however, it would have adverse effects upon con
centration in the relevant market.
Bank, the 25th largest of 46 banking organi
zations in the relevant market,2 has total deposits
of approximately $54.9 million, $48.9 million %
of
which are in offices within the Detroit market,
representing 0.3 per cent of the total commercial
bank deposits in the relevant market. Applicant
has a significant presence in the Detroit banking
market as it operates three banks with 107 banking
offices in the market controlling $4.96 billion in
deposits, which represent 30 per cent of total
commercial bank deposits in the market. The four
largest banking organizations in the Detroit market
hold in the aggregate 70.2 per cent of total com
mercial bank deposits in the market. Acquisition
of Bank would result in a further increase in
market concentration and continue the trend
toward concentration that the market has exhibited
in the last year.
In addition to having adverse effects upon the
concentration of banking resources in the Detroit
market, it appears that consummation of this pro
posal would eliminate existing competition within
the Detroit market between Bank and Applicant.
The Board notes that this proposal involves the
acquisition of the largest independent bank in the
Livingston County portion of the Detroit market
by the largest bank holding company in the market
and the State. Although Michigan law would pro
*A11 banking data are as o f June 30, 1976. Applicant
received approval to acquire the National Bank of Port Huron,
Port Huron, M ichigan, a proposed new bank, on Septem ber
27, 1976; how ever, the bank has not yet opened for business.
(See 6 2 Federal R eserve B u l l e t i n 861, 1976.)
2In the previous cases involving the D etroit area, the Board
has generally been confronted with bank holding com pany
applications to acquire banks located near the center of the
Detroit banking market and has defined that market som ew hat
loosely as being approxim ated by M acom b, Oakland, and
W ayne Counties. This proposal in volves the acquisition of a
bank on the fringe of the Detroit market and consequently the
Board has exam ined more c losely the available census data
so as to define more precisely the Detroit banking market for
purposes of analyzing the com petitive effects of this proposal.
On the basis of a detailed study o f com m uting patterns and
population trends, it appears that a significant proportion of
the population o f the five counties surrounding M acom b, Oak
land and W ayne C ounties, work in M acom b, Oakland and
W ayne C ounties, and therefore, the definition of the Detroit
market should be expanded som ew hat to include 33 cities and
tow nships from the counties of St. Clair, Lapeer, L ivingston,
W ashtenaw , and M onroe. (S ee A ppendix A .)
584
Federal Reserve Bulletin □ June 1977
hibit Applicant from branching into most of the
Livingston County portion of the Detroit market,
Applicant is in a strong financial position and
clearly has the resources to expand into Livingston
County; in particular, Applicant has previously
expressed an interest in that portion of the market
and is clearly capable of de novo entry through
the establishment of a new bank there.3 In light
of the above, the Board concludes that consum
mation of the proposal would eliminate significant
existing competition within the Detroit market.
The financial and managerial resources and
prospects of Bank are regarded as satisfactory. The
financial and managerial resources and future
prospects of Applicant and its subsidiaries are also
regarded as satisfactory. Applicant would ex
change shares of its common stock for the out
standing stock of Bank and would purchase con
vertible debentures of Bank for cash. The Board
finds that considerations relating to financial and
managerial resources and future prospects of Ap
plicant, its subsidiaries and Bank are consistent
with approval; however, such considerations do
not lend significant weight for approval of the
application.
Applicant states that it would improve Bank’s
services somewhat by increasing Bank’s loan
portfolio to include more consumer and commer
cial loans, upgrading some of Bank’s physical
facilities and increasing Bank’s hours of operation.
However, it appears that the major banking needs
in the community are currently being met. Ac
cordingly, the Board finds that little weight can
be accorded such services and that considerations
relating to the convenience and needs of the com
munity to be served lend no significant weight
toward approval of the application. In summary,
therefore, the considerations relating to banking
factors and the considerations relating to the con
venience and needs of the community to be served
do not outweigh the substantially adverse compet
itive effects that would result from Applicant’s
acquisition of Bank.
On the basis of the facts of record, and in light
of the factors set forth in § 3(c) of the Act, it
is the Board’s judgment that approval of the pro
posal would not be in the public interest. Accord
ingly, the application is denied for the reasons
summarized herein.
By order of the Board of Governors, effective
May 12, 1977.
V o tin g
fo r
th is
a c tio n :
V ic e
C h a irm a n
G o v e rn o rs W a llic h , C o ld w e ll, P a rte e , a n d
an d
n o t v o tin g : C h a ir m a n
B u rn s
(Signed)
a n d
G a rd n e r
L illy .
G o v e rn o r Ja c k s o n .
L.
G r if f it h
G arw ood,
D eputy Secretary of the Board.
[s e a l ]
A P P E N D I X
A
Cities and Townships
Added to the Detroit Banking Market
County
La p e e r
City or Township
A lm o n t
D ry d e n
H a d le y
M e ta m o ra
M o n ro e
A s h
B e r lin
W a s h te n a w
S a le m
S t.
A lg o n a c
C la ir
C ity
B e r lin
C a s c o
C h in a
C la y
C o lu m b u s
C o ttr e llv ille
E a s t
C h in a
Ira
M a rin e
C ity
M e m p h is
N e w
C ity
B a ltim o re
R ile y
S t.
L iv in g s to n
C la ir
C ity
S t.
C la ir
T w p .
B rig h to n
C ity
B rig h to n
T w p .
G e n o a
3 Applicant contends that the relatively low ratios o f popula
tion and deposits per banking office in Livingston County make
de novo entry there unattractive. H ow ever, betw een 1960 and
1970 the population o f L ivingston County grew by 5 4 .2 per
cent, a rate four tim es the State average. B etw een 1970 and
1975, available data indicate that the co u n ty ’s population grew
by 32 per cent o f the 1970 base. A ccordin gly, the Board is
unable to agree with A pplican t’s contention that the county
is unattractive to de novo entry.
an d
A b s e n t
G re e n
O a k
H a r tla n d
H o w e ll
C ity
H o w e ll
T w p .
Io s c o
M a rio n
O c e o la
T y ro n e
C ity
L aw D epartm ent
Northwest Bancorporation,
Minneapolis, Minnesota
O rder D enying A cquisition of Bank
Northwest Bancorporation, Minneapolis, Min
nesota, a bank holding company within the mean
ing of the Bank Holding Company Act, has ap
plied for the Board’s approval under § 3(a)(3) of
the Act (12 U.S.C. § 1842(a)(3)) to acquire 90
per cent or more of the voting shares of First
National Bank, Fort Dodge, Iowa, Fort Dodge,
Iowa (“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant is the largest banking organization in
Iowa and controls 7 banks with aggregate deposits
of $721 million, representing approximately 6.1
per cent of the total deposits in commercial banks
in Iowa.1 In addition to its holdings in Iowa,
Applicant also controls 75 banks in six nearby
States with total deposits of approximately $6
billion. Acquisition of Bank ($62.6 million in de
posits) would increase Applicant’s share of com
mercial bank deposits in Iowa by 0.5 per cent.
Bank is located in the Fort Dodge banking
market, which is approximated by Webster County
plus Cedar and Reading townships in adjoining
Calhoun County. Applicant’s banking subsidiary
closest to Bank is located in Des Moines, Iowa,
87 miles from Bank, and there is currently no
meaningful competition between Bank and any of
Applicant’s banking subsidiaries. Accordingly, no
significant existing competition would be elimi
nated between Bank and any of Applicant’s sub
sidiary banks upon consummation of this proposal.
The Fort Dodge banking market is highly con
centrated, the three largest of the eight banks in
that market controlling approximately 85 per cent
of market deposits and 88 per cent of market loans.
Bank is the largest bank in this market, holding
approximately 30 per cent of total market deposits,
and appears to be a viable and effective competi
tor. Thus, approval of the present proposal would
enable Applicant to establish itself as a significant
competitor in a highly concentrated market
* 1 banking data are a of June 30, 1976.
A1
s
585
through the acquisition of the largest bank in that
market. Prospects for deconcentration of the Fort
Dodge market are few, essentially limited by
Iowa’s restrictive branch banking law to establish
ment of de novo banks.2
Applicant’s acquisition of the largest bank in
the market will do nothing to decrease this market
concentration. To the contrary, it would eliminate
the probability that Applicant would enter the
market de novo and, through its competitive efforts
to gain an increased market share, decrease present
concentration in the market. It is also probable
that the proposed acquisition would deter other
banking organizations from attempting de novo
entry into the Fort Dodge market.
On the basis of total deposits in the seven States
in which it operates, Applicant is approximately
ten times larger than the second largest Iowa bank
holding company and its acquisition of the largest
bank in the Fort D odge market may be expected
to discourage other Iowa banking organizations
from entry into that market. Thus, acquisition of
Bank by Applicant would probably eliminate any
likelihood that the market would become less
concentrated in the future. In view of the total
resources available to Applicant, the absolute size
of Bank, and its relative position in the market,
the prospects for increased competition and de
concentration of the Fort Dodge market would be
diminished as a result of the contemplated acqui
sition.
There can be no doubt that Applicant possesses
the resources to accomplish a de novo entry into
the Fort Dodge banking market. Indeed, the fi
nancial and managerial resources available to Ap
plicant coupled with the relatively small size of
the Fort Dodge banking market suggest that a de
novo banking subsidiary established by Applicant
in this market could become a substantial compet
itor within a brief period of time. Evidence of
record suggests that Applicant is engaged in an
expansion program designed to accomplish the
acquisition of a bank in each of Iowa’s major
banking markets. Thus, if Fort Dodge is attractive
for de novo entry, Applicant must be regarded as
a potential de novo entrant.3
Population per banking office and deposits per
banking office in the Fort Dodge market are higher
than those for all counties in Iowa that, like
Webster County, have not been classified as
2 Iow a law generally prohibits the establishm ent of a branch
office in any town in w hich another bank is located. Iowa Code
Ann. § 5 2 4 .1 2 0 2 . T hus, no bank may branch into Fort D odge.
3 See follow in g page for footnote 3.
586
Federal Reserve Bulletin □ June 1977
s ta n d a rd m e tro p o lita n s ta tis tic a l a re a s
(“ SMSA’s” ), although such ratios are somewhat
lower than those for counties of similar total pop
ulation. In terms of total deposits, however, the
Fort Dodge market is the ninth largest banking
market in Iowa and its population growth com
pares favorably with other Iowa non-SMSA coun
ties.4 Retail sales per banking office in Fort Dodge
are nearly twice as high as in any other non-SMSA
county and future economic growth appears likely
in view of the establishment of a new industrial
park and other developments in the city of Fort
Dodge.
Another indicium of the market’s attractiveness
for de novo entry is the above-average profitability
of each of the three banks located in the city of
Fort Dodge. Indeed, the return on assets at Bank
and at the second largest Fort Dodge bank over
the last four years has averaged forty per cent
above that of other banks of similar size in Iowa.
For the market as a whole, return on assets has
been 12 per cent above all banks in the State. This
disparity in profitability may well be related to the
concentrated nature of the market, and thus be
indicative of the substantial procompetitive effect
Applicant’s de novo entry would likely have.
There is no evidence in the record to suggest that
either the Iowa Superintendent of Banking or the
Comptroller of the Currency would not grant an
application to charter a de novo bank in Fort
Dodge.
D e novo entry by Applicant into the Fort Dodge
market would not only increase competition
therein by introducing a new and aggressive com
petitor into the market, but would also tend to
reduce the concentration of banking resources in
3 A lthough the sm aller banks in the market could be regarded
as p ossibilities for a “ fo o th o ld ” acquisition, all are located
outside o f the city o f Fort D o d g e and are prevented from
branching into Fort D odge by Iow a law , thus making them
unattractive for such an acquisition. M oreover, the primary
opportunity for bank growth in the market is in the city of
Fort D od ge. A s none o f these banks m ay enter that city it
is not likely that they w ill be able to attract sufficient new
business to significantly deconcentrate the market, either as
independent banks or as a subsidiary o f a bank holding c o m
pany such as Applicant. Only a d e novo bank located in the
city o f Fort D odge w ould be capable o f effecting such d econ
centration. Thus, the m arket’s attractiveness for de novo entry
and the preservation o f Applicant as such a potential entrant
are major considerations with regard to this application.
4N on-S M S A data appear more relevant as Applicant is
already represented in, or has applied to acquire banks in, six
of Io w a ’s seven S M S A ’s. B etw een 1960 and 1970 W ebster
County population grew at a rate o f 1.2 per cent annually,
a growth rate w hich was only one-half of the State average
of 2 .4 per cent, but w hich w as also significantly above that
of the State’s non-SM S A counties, w hich show ed a population
decrease o f 1.2 per cent during this period.
the market while preserving Bank as a viable
competitive force in the market. In addition, the
possibility would be preserved that Bank might
become affiliated with one of the State’s smaller
bank holding companies—not an unlikely prospect
in view of Bank’s attractiveness for acquisition,
due in part to its market position. On the basis
of the facts of record, the Board concludes that
consummation of the proposed acquisition would
have a substantial adverse effect on potential com
petition in the Fort Dodge banking market.
Unless such anticompetitive effects are clearly
outweighed in the public interest by the probable
effect of the transaction in meeting the conven
ience and needs of the communities to be served,
the application must be denied.5 The financial and
managerial resources and future prospects of Ap
plicant, and its subsidiary banks, are regarded as
generally satisfactory while those of Bank are
regarded as satisfactory. There is no evidence in
the record to indicate that the banking needs of
the relevant market are not being met by existing
institutions in the market. While certain benefits
to the convenience and needs of the communities
to be served might result from Applicant’s acqui
sition of Bank, such benefits would also derive
from entry by less anticompetitive means. Ac
cordingly, although banking factors and consid
erations relating to the convenience and needs of
the communities to be served are consistent with
approval, they do not outweigh the substantial
adverse competitive effects of the proposal. It is
the Board’s judgment that on the basis of the entire
record, consummation of the proposed acquisition
would not be in the public interest and that the
application should be and hereby is denied.
By order of the Board of Governors, effective
May 2, 1977.
V o tin g
Ja c k s o n ,
sent
an d
f o r th is
a n d
n o t
a c tio n : G o v e r n o r s
P a rte e .
v o tin g :
A b s ta in in g :
C h a irm a n
W a llic h , C o ld w e ll,
G o v e rn o r
B u rn s
a n d
L illy .
A b
G o v e rn o r
G a rd n e r.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
Roger Billings, Incorporated,
Delphos, Kansas
O rder A pprovin g
A cquisition of A ddition al Shares of Bank
5N o rth w est B an co rp o ra tio n / F irst N a tio n a l B ank o f D u bu
que, 59 Fed. R es. B u l l e t i n 7 6 2 (1 9 7 3 ) (convenience and
needs considerations insufficient to outw eigh adverse com peti
tive effects).
L aw D epartm ent
Roger Billings, Incorporated, Delphos, Kansas,
a registered bank holding company,1 has applied
for the Board’s approval under § 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire an addi
tional 10 per cent of the voting shares of The State
Bank of Delphos, Kansas (“ 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 currently owns 26.8 per cent of the
voting shares of Bank, and also engages in insur
ance activities.2 Bank, with total deposits as of
June 30, 1976 of approximately $4.7 million,
controls approximately .05 per cent of the total
deposits in commercial banks in the State3 and is
the fourth largest of the five banks in the relevant
market with approximately 15.2 per cent of the
total deposits in the market.4 Applicant proposes
to acquire 50 shares of Bank from a principal
shareholder of Bank and Applicant. The proposed
acquisition of additional shares of Bank would
have no effect on competition, since Applicant and
its officers, directors and principal shareholders
together already control a majority of Bank’s out
standing voting shares. Thus, competitive consid
erations are consistent with approval of the appli
cation.
The financial and managerial resources of Ap
plicant and Bank are considered generally satis
factory. Although Applicant would incur some
debt in connection with this acquisition, it appears
that income from Bank and Applicant’s insurance
activities would provide sufficient revenue to serv
1Applicant registered as a bank holding com pany in 1971
at the request o f the Federal R eserve Bank o f Kansas City.
Under § 2 2 5 .2 (b ) o f the B oard’s R egulation Y (12 C .F .R .
§ 2 2 5 .2 (b )) a rebuttable presumption existed that Applicant
controlled The State Bank o f D elp h os, D elphos, Kansas;
how ever, the Board has not made a determination that A ppli
cant controlled that bank. B y Order o f Septem ber 14, 1976
the Board approved the application o f Applicant to acquire
4 .6 per cent o f the voting shares o f Bank. See 62 Federal
R eserve B u l l e t i n 863.
2 Applicant claim s § 4 (c) (ii) as authority for its continuing
to engage in its nonbanking activities. In the event the Board
determines that Applicant is not entitled to that exem ption,
A pplicant has agreed to either file an application pursuant to
§ 4(c)(8 ) or reduce its holdings o f B ank’s stock to less than
25 per cent o f the outstanding voting shares.
3 A ll banking data are as o f D ecem ber 3 1, 1975, except as
noted.
4The relevant market is approximated by northern Ottawa
and southern C loud C ounties.
587
ice the debt adequately without adversely affecting
the financial condition of Bank. Accordingly,
considerations relating to banking factors are con
sistent with approval. Although there are no im
mediate changes contemplated in the services or
facilities of Bank as a result of this acquisition
of additional voting shares, considerations relating
to the convenience and needs of the community
to be served are consistent with approval of the
application. Therefore, it is the Board’s judgment
that the proposed transaction is consistent with the
public interest and that the application should be
approved.
On the basis of the record, the application is
approved for the reasons summarized above. 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 the
Federal Reserve Bank of Kansas City.
By order of the Board of Governors, effective
May 6 y 1977.
V o tin g
fo r
G o v e rn o rs
A b s e n t
a n d
th is
a c tio n :
W a llic h ,
n o t
V ic e
C h a irm a n
C o ld w e ll,
v o tin g :
C h a irm a n
G a rd n e r
Ja c k s o n ,
B u rn s
a n d
a n d
a n d
P a rte e .
G o v e rn o r
L illy .
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
SYB Corporation,
Oklahoma City, Oklahoma
O rder A pprovin g
Formation of Bank H olding Com pany
SYB Corporation, Oklahoma City, Oklahoma,
has applied for the Board’s approval under § 3(a)
(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of formation of a bank holding
company through acquisition of 80 per cent or
more of the voting shares of Stock Yards Bank,
Oklahoma City, Oklahoma (“ Bank” ).1
*By Order o f M ay 6, 1975 (40 F ederal R e g iste r 210 7 6 ),
the Board approved an application by SY B Corporation to
becom e a bank holding com pany through the acquisition of
Bank. C onsum m ation o f the approved proposal w as delayed
pending receipt of a tax ruling from the Internal R evenue
Service. In view o f the length of tim e that has elapsed since
the Board issued its Order approving the application and the
substantial am endm ents that Applicant has made to the pro
posal, the Board has considered the am ended proposal as if
it were a new application.
E ffective April 25, 1977, Bank changed its nam e to United
Oklahoma Bank.
588
Federal Reserve Bulletin □ June 1977
Notice of the amended application, affording
opportunity for interested persons to submit com
ments and views, has been given in accordance
with § 3(b) of the Act. The time for filing com
ments and views has expired, and the Board has
considered the application and all comments re
ceived in light of the factors set forth in § 3(c)
of the Act (12 U.S.C. § 1842(c)).
Applicant, a non operating corporation with no
subsidiaries, was formed for the purpose of be
coming a bank holding company. Upon acquisition
of Bank,2 Applicant would control .06 per cent
of the total deposits in commercial banks in Okla
homa.3 Bank, the ninth largest of 72 banking
organizations in the relevant market,4 holds de
posits of approximately $59.6 million, repre
senting approximately 1.8 per cent of the total
deposits in commercial banks in the market.
Upon consummation of the proposal, 16 onebank holding companies5 would each acquire less
than 5 per cent of Applicant’s voting shares, and
the remainder of Applicant’s shares would be held
by present shareholders of Bank. The 16 banking
organizations hold aggregate deposits of; approxi
mately $1.0 billion, representing approximately
9.6 per cent of the total deposits in commercial
banks in Oklahoma. Three of the 16 organizations
are represented in the Oklahoma City market and
hold aggregate deposits, including deposits held
by Bank, amounting to $215.8 million or 6.6 per
cent of total market deposits. In this circumstance,
it is doubtful that the acquisition of less than 5
per cent of Applicant’s stock by each of these
organizations would adversely affect existing
competition within the Oklahoma City market.
Each of the other 13 organizations that would own
2Under a trust arrangement, shareholders of Bank are the
beneficial owners o f 20 per cent o f the shares o f Oklahoma
Bankers L ife Insurance C om pany, O klahom a City, Oklahoma
( “ O B L IC ” ). Under §§ 2(g )(1 ) and 2(g )(2 ) of the A ct, control
of these shares w ould be attributed to Applicant upon its
acquisition of Bank. The activities o f OBLIC have not been
determined to be perm issible under § 4(c)(8 ) of the A ct and,
therefore, the indirect control o f these shares by A pplicant is
prohibited. A ccordingly, upon acquisition of Bank, A pplicant
is required to divest its indirect interest in OBLIC within the
applicable tim e period provided in § 4(a)(2) of the A ct.
3A11 banking data are as o f June 30, 1976.
4 The relevant market is approxim ated by the Oklahoma City
Standard M etropolitan Statistical Area.
5At this tim e, only ten o f the 16 bank holding com panies
have been form ed. R egulatory approval has been granted to
formation of an eleventh. The participation o f the remaining
holding com panies in the above-described arrangement is con
tingent upon regulatory approval o f their formation.
shares of Applicant is located in a separate banking
market. In light of the small interest each of the
16 organizations would acquire in Applicant, the
Board concludes that consummation of the pro
posal would not increase the concentration of
banking resources in any relevant market and
would not have a significant adverse effect upon
either existing or potential competition. Accord
ingly, the Board finds that competitive consid
erations are consistent with approval of the appli
cation.
Where, as here, a number of bank holding
companies agree to acquire less than 5 per cent
each of the outstanding voting shares of another
company or a bank, at least two issues warranting
regulatory concern may arise: First, the compa
nies’ participation in the management or business
of the other company or bank may be so extensive
as to support the conclusion that each of the
holding company-shareholders is not merely a
passive investor, but is in fact engaging as an
entrepreneur in the business of the other company
or bank.6 Second, the group of shareholders itself
may, through agreement or understanding among
the members or through its structure alone, con
stitute a “ company” within the meaning of § 2(b)
of the Act (12 U.S.C. § 1841(b)).
On the basis of the facts of record in the present
case, the Board is not persuaded that the intention
of the holding company-shareholders is to expand
their banking businesses further through Appli
cant. Moreover, the Board does not find it neces
sary at this time to make a determination that the
proposed stockholders of Applicant will them
selves constitute an organization that fits the defi
nition of “ company” in § 2(b). The Board remains
concerned, however, that the close association of
bank holding companies as stockholders of Appli
cant could create potential opportunities for addi
tional investments in banking or nonbanking busi
nesses by this group under circumstances that
could be inconsistent with the purposes of the Act.
Accordingly, the Board’s approval of this applica
tion, and its decision not to treat the stockholder
6The Board recently stated, in an interpretation under § 4
of the A ct, that the exem ption in § 4 (c)(6 ) of the A ct, under
which a bank holding com pany is generally permitted to ow n
up to 5 per cent of the voting shares of a nonbank com pany
w ithout Board approval, should be interpreted as applicable
only to passive investm ents, and does not authorize control
relationships or entrepreneurial activity (63 Federal R eserve
B u l l e t i n 60 (1977)). The rationale o f that interpretation is
equally applicable to the acquisition of 5 per cent holdings
in banks or bank holding com panies within the leew ay provided
in § 3(a)(3) of the A ct.
L aw D epartm ent
group as a bank holding company itself, are sub
ject to the following conditions:
th is a c tio n :
C h a irm a n
G o v e r n o r C o ld w e ll.
B u rn s
a n d
G o v e rn o r
(Signed)
1 . T h e
c o m p a n ie s
o w n in g
o r c o n tr o llin g
o f A p p lic a n t w ill n o t e n g a g e
in a n y
o r
p a rt
n o n b a n k in g
c o n s is ts
a re
o f
a c tiv itie s
s u b s ta n tia lly
s h a re h o ld e rs
2 .
T h e
w ill
o r
c e r n in g
to
3 .
b e
a n y
m a n n e r
in
o f
th e
s h a re s
fo rm a l
o r
a m o n g
w h ic h
g ro u p
th a t
s e ll,
sh a re s
o f
A p p lic a n t
ta in e d
th e
in fo rm a l
o f
a g re e
c o n
A p p lic a n t
tr a n s fe r e e
to
b e
o w n in g
s h a re s
u n le s s
o f
a n d
a n y
b o u n d
u n til
th e
its
it
p u rc h a se r,
b y
o f
a n y
a s s ig n , o r tr a n s fe r
a g re e m e n t
o f
has
o b
a s s ig n e e
p ro v is io n s
o f
O rd e r.
Should the Board have reason to believe at some
future date that these companies are not acting
independently as essentially passive investors, it
will take appropriate steps to ensure that the regu
latory purposes of the Act are not evaded.
The financial and managerial resources and fu
ture prospects of Applicant are dependent upon
those of Bank, which are regarded as satisfactory.
Applicant will issue voting common stock and
nonvoting cumulative preferred stock in exchange
for Bank’s shares. Accordingly, considerations
relating to banking factors are consistent with
approval of the application. Although consumma
tion of the proposed transaction would have no
immediate effect on area banking needs, consid
erations relating to the convenience and needs of
the community to be served are consistent with
approval. It is the Board’s judgment that consum
mation of the proposed transaction would be con
sistent with the public interest and that the appli
cation 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 Kansas City pursuant
to delegated authority.
By order of the Board of Governors, effective
May 6, 1977.
V o tin g
G o v e rn o rs
fo r
th is
a c tio n :
W a llic h ,
V ic e
P a rte e ,
C h a irm a n
a n d
v o tin g :
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
L illy .
G a rd n e r
V o tin g
D issenting Statem ent of G overnor C oldw ell
as
o f A p p lic a n t
th e m s e lv e s
s h a re s
c o m p a n ie s
w ill
th is
a
c o m p a n ie s
v o te d .
N o n e
A p p lic a n t
o r
sa m e
o w n in g
u n d e rs ta n d in g
th e
th e
n o t
Ja c k s o n .
o th e r b a n k in g
o f
A p p lic a n t.
c o m p a n ie s
n o t e n te r in to
m e n t
a re
o f
as
[s e a l ]
sh a re s
A b s e n t a n d
589
an d
a g a in s t
In my opinion, approval of this case opens up
a very broad range of concerns about the use of
the holding company device and the Board’s abil
ity to contain it. First by permitting formation of
a one-bank holding company owned by a consor
tium of other bank holding companies the Board
is sanctioning the “ tiering” of holding companies.
I think this will diminish the accountability of bank
management and calls into question the degree to
which the owners (shareholders) can be relied
upon to provide financial strength to the subsidiary
bank. If the top tier of owners are bank holding
companies responsible for their own banks, one
can question their willingness to finance capital
needs of another holding company that owns the
Stock Yards Bank.
Secondly, this approval opens up the possibility
of using the bank holding company format to
achieve bank concentrations far beyond that con
templated in normal acquisitions. A grouping of
bank holding companies each owning less than 5
per cent of the underlying one-bank holding com
pany could acquire even very large banks provid
ing a “ front man” sets up the new company. I
view this arrangement as a device for circumvent
ing Board approval of the primary consortium and
means of broadening the bank holding company
format to encompass a wide range of permissible
and impermissible activities.
Beyond these objections, I have a fundamental
problem with domestic joint ventures by financial
institutions. It has been our experience that joint
ventures often result in disputes as to who controls,
manages, or supplies new capital or credit to the
joint venture. I am reluctant to establish a prece
dent that would encourage such formations, espe
cially since I see major problems of control and
operations inherent in this device.
Finally, the way in which this particular cas^r
is presented, with the ultimate owners the onebank holding companies acting individually rather
than as an identifiable legal group, means that the
group could use this format as a means of gaining
control over other banks or nonbank companies
by each acquiring, as an individual owner, less
than 5 per cent of the outstanding voting shares
rather than acquiring the shares as a consortium
590
Federal Reserve Bulletin □ June 1977
formed into a bank holding company. Such acqui
sitions would enable the owners to escape the
Board’s controls and reporting requirements. I
think this constitutes a major evasion of our regu
lations and broadens the use of the bank holding
company device far beyond the expressed intent
of Congress.
For these reasons I would deny this application.
O r d e r s U n d e r S e c t io n
4 o f B a n k H o l d in g C o m p a n y A c t
Manufacturers Hanover Corporation,
New York, New York
O rder A pproving Retention of Offices of
R itter Financial Corporation and
Recom m encem ent of Reinsurance A ctivities
Manufacturers Hanover Corporation, New York,
New York, 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 (12 U.S.C. § 1843(c)(8)) and
§ 225.4(b)(2) of the Board’s Regulation Y (12
CFR § 225.4(b)(2)), to retain indirectly seven
offices of Ritter Financial Corporation, Wyncote,
Pennsylvania (“ Ritter” ), a wholly-owned subsidi
ary of Applicant. The offices that Applicant has
applied to retain engage in the following activities:
making or acquiring, for its own account or for
the account of others, loans and other extensions
of credit such as would be made by a finance
company, servicing loans and other extensions of
credit for any person and acting as agent or broker
for the sale of credit-related life insurance and
credit accident and health insurance. These activi
ties have been determined by the Board to be
closely related to banking (12 CFR § 225.4(a)(1),
(3), and (9)). The offices are located in Sicklerville, New Jersey; Fairmont, Red Springs and
Wadesboro, North Carolina; Hummelstown,
Pennsylvania; and Warsaw and Woodstock, Vir
ginia.
Applicant has also applied for the Board’s ap
proval to recommence the activity of reinsuring
credit life insurance and credit accident and health
insurance that is directly related to extensions of
credit by the Ritter organization in North Carolina
and Pennsylvania. These activities have also been
determined by the Board to be closely related to
banking (12 CFR § 225.4(a)(10)).
Notice of the applications, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Fed. R eg. 16190 (1976)). The time
for filing comments and views has expired, and
the Board has considered all comments received
in the light of the public interest factors set forth
in section 4(c)(8) of the Act (12 U.S.C. § 1843
(c)(8)).
Applicant is the third largest banking organi
zation in New York State and the fourth largest
nationally.1 Applicant controls Manufacturers
Hanover Trust Company, New York, New York.
Ritter, a regional consumer finance company with
total assets of approximately $111 million and net
receivables of approximately $102 million, was
acquired by Applicant on January 3, 1975, pur
suant to Board approval granted effective De
cember 10, 1974 (61 Fed. Res. B u l l e t i n 42
(1975)).
At the time that Applicant filed its application
to acquire Ritter, the latter had 125 offices in
Connecticut, New Jersey, North Carolina, Penn
sylvania, Virginia, and West Virginia. During the
pendency of that application, Ritter opened eight
additional offices;2 however, Applicant did not
amend its application to reflect those additional
offices. Accordingly, the Board’s approval of Ap
plicant’s application to acquire Ritter related only
to the 125 offices that were listed in its application.
Applicant’s operation of offices for which it did
not obtain prior Board approval was in violation
of the Board’s Regulation Y.3 By this application,
Applicant seeks to bring the operation of its addi
tional offices into conformance with the Act.
In acting on applications pursuant to § 4(c)(8)
of the Act to retain offices or to recommence
engaging in activities in situations where the nec
essary prior Board approval was not obtained for
such offices or activities, the Board applies the
same standards as it does to applications to estab
lish such offices and commence such activities
initially. In addition, the Board considers the
competitive effects of such proposals as of the time
that the offices were established or the activities
commenced.
At the time that it approved Applicant’s appli
cation to acquire Ritter, the Board noted that only
a slight amount of existing competition would be
eliminated between Applicant and Ritter. The
competition that did exist was a result of the
1A11 banking and other financial data are as o f D ecem ber
31, 1975.
2 O ne o f the offices opened during this period w as subse
quently closed.
3See 12 CFR § 2 2 5 .4 (c )(2 ).
L aw D epartm ent
proximity of Ritter’s two Connecticut offices to
the Metropolitan New York market in which Ap
plicant operated. Because of the locations of the
offices that are the subject of this application, it
does not appear that any competition between
Applicant and those offices existed at the time that
the Board approved Applicant’s application nor
does it appear that any competition exists at this
time.
With respect to potential competition, the
Board, in approving Applicant’s original applica
tion, stated that it was questionable whether Ap
plicant’s de novo expansion in the consumer fi
nance company business or accelerated growth in
its consumer lending would give rise to substantial
future competition between Applicant and Ritter.
The Board concluded that the only significant
competition that would be foreclosed by approval
of the application would be some distance in the
future. It does not appear that the Board’s conclu
sion on this question would have been affected
by an awareness of the existence of the additional
offices; nor does it appear, on the basis of infor
mation in the record, that a significant amount of
future competition would be eliminated by reten
tion of these offices. Accordingly, it is the Board’s
conclusion that no significant amount of existing
or potential competition would be eliminated as
a result of Applicant’s retention of the additional
offices. Moreover, there is no evidence in the
record indicating that retention of these offices
would result in any undue concentration of re
sources, unfair competition, conflicts of interests,
unsound banking practices or other adverse effects
on the public interest.
Based upon the foregoing and other consid
erations reflected in the record, the Board has
determind that the balance of the public interest
factors the Board is required to consider under §
4(c)(8) is favorable. Accordingly, the application
to retain the seven offices is hereby approved.
As part of its Order approving Applicant’s ac
quisition of Ritter, the Board also specifically
authorized Applicant, through a subsidiary of Rit
ter, to act as reinsurer of group credit life and
credit accident and health insurance sold in con
nection with extensions of credit by Ritter’s offices
in Virginia, West Virginia, and New Jersey. Ap
plicant’s application indicated that Ritter was en
gaged in reinsurance activities only in those three
States and, accordingly, the Board’s Order of
December 10, 1974, only authorized Applicant to
engage in reinsurance activities in those three
States. Applicant, however, commenced reinsur
591
ance activities in the States of North Carolina and
Pennsylvania on December 16, 1975, and June 1,
1975, respectively. Applicant’s performance of
this activity without the prior approval of the
Board was in violation of the Board’s Regulation
Y.4 Applicant, at the request of the Board’s staff,
has terminated its reinsurance activities in North
Carolina and Pennsylvania pending the Board’s
action on its application.
Credit life insurance and credit accident and
health insurance 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:
T o
a s s u re
c re d it life
can
th a t
e n g a g in g
in
th e
u n d e r w r itin g
a n d c r e d it a c c id e n t a n d h e a lth
r e a s o n a b ly
b e
e x p e c te d
be
B o a rd
in
in
a p p lic a n t d e m o n s tra te s
w h ic h
an
w ill o n ly
to
in te r e s t, th e
a p p ro ve
N o r m a lly ,
m a d e b y
a p r o je c te d
in
p o lic y
b e n e fits
p e rfo rm a n c e
2 2 5 .4 ( a ) ( 1 0 )
o f
n .
such
a
th is
to
b a n k
in
p u b lic
th a t a p p r o v a l
o th e r p u b lic
s h o w in g
re d u c tio n
d u e
th e
a p p lic a tio n s
w i l l b e n e fit th e c o n s u m e r o r r e s u lt in
b e n e fits .
o f
in s u ra n c e
w o u ld
b e
ra te s o r in c re a s e
h o ld in g
s e r v ic e .
( 1 2
c o m p a n y
C F R
§
7 )
Applicant has stated that, upon recommence
ment of reinsurance activities in North Carolina
and Pennsylvania, it would reduce the rates
charged by Ritter’s subsidiaries for credit life and
credit accident and health insurance in the two
States by amounts ranging from 2 per cent to 7.5
per cent.5 The Board is of the view that the
availability of this service at reduced premiums
is in the public interest. There is no evidence in
the record indicating that consummation of the
proposed transaction would result in any undue
concentration of resources, decreased or unfair
competition, conflicts of interest, unsound banking
practices, or other adverse effects on the public
interest.
Based upon the foregoing and other consid
erations reflected in the record, including a com
mitment by Applicant, with respect to its proposed
underwriting activities, to maintain on a continu
ing basis the public benefits that the Board has
4See 12 CFR § 2 2 5 .4 (c)(2 ).
a p p lic a n t ’s reduced premium rate schedule becam e effec
tive on N ovem ber 1, 1976. A pplicant also undertook to rebate
to Ritter’s North Carolina and Pennsylvania custom ers amounts
charged prior to N ovem ber 1, 1976, that were in e x cess of
the reduced prem ium rates.
592
Federal Reserve Bulletin □ June 1977
found to be reasonably expected to result from this
proposal and upon which the approval of that
aspect of this proposal is based, 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.
As indicated above, the subject applications
consist of after-the-fact requests for the Board’s
approval to conduct operations that had been
commenced in violation of the Board’s Regulation
Y. It is the Board’s view, on the basis of the facts
and circumstances of the subject applications, that
the violations were inadvertent. In acting on the
applications, the Board took into consideration the
fact that Applicant, upon becoming aware of the
existence of the violations, took steps to conform
its operations to the Act by filing the subject
applications. In addition, Applicant’s senior man
agement has taken steps to prevent violations from
occurring by establishing procedures for central
ized internal review of all of Applicant’s activities
for compliance with the substantive and procedural
requirements of the Act and the Board’s Regula
tion Y. The Board expects that these actions will
assist Applicant in avoiding a reoccurrence of
similar violations. In consideration of the above
and other information in the records of these
applications, the Board has determined that the
circumstances of the above violations do not war
rant denial of the applications.
The determination with respect to these appli
cations is subject to the conditions set forth in §
225.4(c) of Regulation Y and to the Board’s au
thority 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 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 3, 1977.
V o tin g
f o r th is
Ja c k s o n ,
P a rte e ,
C h a irm a n
B u rn s
a c tio n : G o v e r n o r s
a n d
a n d
L illy .
W a llic h ,
A b s e n t
G o v e rn o r
a n d
C o ld w e ll,
n o t
v o tin g :
G a rd n e r.
(Signed) G r if f it h L. G a r w o o d ,
[seal]
Deputy Secretary of the Board.
United Kentucky, Inc.,
Louisville, Kentucky
O rder A pprovin g Acquisition of
K esselring-N etherton & A sso cia tes , Inc.
United Kentucky, Inc., Louisville, Kentucky,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board’s approval, under § 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and 225.4(b)(2) of the
Board’s Regulation Y (12 CFR § 225.4(b)(2)), to
acquire shares of Kesselring-Netherton & Asso
ciates, Inc., Louisville, Kentucky (“ Company” ),
through a non-operating subsidiary corporation,
United Kentucky Mortgage, Inc., which was char
tered expressly to absorb Company but to do
business as “ Kesselring-Netherton & Associates,
Inc.” Company engages in the activities of origi
nating, for its own account and the accounts of
others, conventional and guaranteed residential
mortgage loans and commercial mortgage loans,
and the servicing of such loans for permanent
investors. Such activities have been determined by
the Board to be closely related to banking (12 CFR
§ 225.4(a)(1) and (3)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the pubic interest factors, has been duly
published (42 Fed. R eg. 14921 (1977)). The time
for filing comments and views has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in § 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)).
Applicant, the sixth largest banking organi
zation in Kentucky, controls one bank, Louisville
Trust Bank, Inc., Louisville, Kentucky (“ Bank” ),
with total deposits of $180.3 million, representing
approximately 1.9 per cent of deposits in com
mercial banks in the State.1 Company, which
commenced operations in 1972, has total assets
of approximately $335,900. Its sole office is lo
cated in Louisville. Company is one of the smaller
mortgage firms in the relevant market, and in
1976, was ranked eleventh largest of twelve mort
gage companies in Jefferson County, Kentucky.2
During 1976, Bank originated approximately
1.4 per cent of the 1-4 family residential mortgage
loans secured by real estate located in the Louis-
1A s of June 30, 1976.
2 B ased upon a ranking by C hicago Title Insurance Company
of dollar amounts of m ortgage loans recorded in Jefferson
County during the first quarter o f 1976.
L aw D epartm ent
ville mortgage market,3 amounting to $2.4 mil
lion. During 1976, Bank also originated mortgage
loans for multi-family and non-residential mort
gage loans amounting to $4.3 million.4
Company does not originate single family
mortgages. It does, however, originate mortgages
on two-to-four family dwellings. During 1976,
these loans, amounting to $0.7 million, accounted
for less than 1 per cent of the 1-4 family residential
loans in the Louisville mortgage market. Company
also originated $14 million in multi-family and
nonresidential mortgage loans and serviced $22.3
million in all mortgage loans.
Bank and Company are direct competitors to
some extent in the local market for the origination
of 1-4 family residential mortgage loans and in
the regional or national markets for originating and
servicing multi-family residential and commercial
mortgage loans. The effect of the elimination of
competition is mitigated, however, by the presence
in the Louisville mortgage market of at least 35
other mortgage banking firms and in the regional
or national markets, of numerous other such firms.
Thus, the elimination of competition that would
result from consummation of the proposed trans
action would be slight.
Upon consummation of the proposed transac
tion, Applicant will expand Company’s origina
tions and servicing into single family mortgage
financing, thus making it a stronger competitor in
the Louisville market. In addition, considering
Company’s small size, Company would also ben
efit from access to the additional financial and
managerial resources and expertise of Applicant
that may not otherwise have been available. Fur
thermore, there is no evidence in the record to
indicate that Applicant’s acquisition of Company
would result in any undue concentration of re
sources, unfair competition, conflicts of interests,
unsound banking practices, or other adverse ef
fects on the public interest. Based upon these
considerations, the Board concludes that the public
benefits that would result from consummation of
the proposal outweigh the slightly adverse com
petitive effects that would occur in the Louisville
mortgage market.
3 The L ouisville m ortgage market for 1-4 fam ily residential
loans is approxim ated by the L ouisville Standard M etropolitan
Statistical Area, w hich includes Jefferson, B ullitt, and Oldham
C ounties, K entucky, and Clark and Floyd C ounties, Indiana.
4Characteristically, the relevant geographic market for the
origination o f m ulti-fam ily and nonresidential m ortgage loans
is regional or national in sco p e, and thus data regarding market
shares for such loans are not readily available.
593
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 Regu
lation 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 there
under, 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 St.
Louis, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
May 18, 1977.
V o tin g
G o v e rn o rs
L illy .
fo r
th is
a c tio n :
W a llic h ,
A b s e n t
a n d
n o t
V ic e
v o tin g :
(Signed)
[s e a l ]
C h a irm a n
C o ld w e ll,
Ja c k s o n ,
C h a irm a n
G r if f it h
L.
G a rd n e r
an d
P a rte e ,
an d
B u rn s .
G arw ood,
D eputy Secretary of the Board.
Wells Fargo & Company,
San Francisco, California
O rder A pprovin g A cquisition of
Ben G. M cG uire & Com pany
Wells Fargo & Company, San Francisco, Cali
fornia, a bank holding company within the mean
ing of the Bank Holding Company Act, has ap
plied for the Board’s approval under § 4(c)(8) of
the Act and § 225.4(b)(2) of the Board’s Regula
tion Y to acquire through a recently established
subsidiary, WF-BGM, Inc., San Francisco, Cali
fornia, all of the voting shares of Ben G. McGuire
& Company, Houston, Texas (“ Company” ), a
company that engages in the activities of mortgage
lending and servicing loans and other extensions
of credit. Such activities have been determined by
the Board to be closely related to banking (12
C.F.R. § 225.4(a)(1) and (3)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 F ederal R eg ister 13060). 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-
594
Federal Reserve Bulletin □ June 1977
est factors set forth in § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant, the third largest banking organization
in California, controls one bank with total deposits
of approximately $10.4 billion representing 10 per
cent of the total deposits in commercial banks in
the State.1 Applicant also controls a number of
other subsidiaries, including subsidiaries engaged
in commercial leasing, real estate advisory serv
ices, loan servicing, and mortgage lending.
Company, operating from one office in Houston,
Texas, is a mortgage lending and loan servicing
company engaged in arranging interim financing
with lenders for origination of permanent mortgage
loans on commercial and income properties and
in the ultimate servicing of such loans. Company
has not been directly involved in funding mortgage
loans, and loans that it has arranged have been
closed in the loan investor’s name, with the inves
tor’s funds. Although none of Applicant’s subsid
iaries is engaged in servicing mortgage loans in
the Houston banking market,2 Applicant’s real
estate advisory subsidiary operates an office in the
Houston market and, among other things, origi
nates real estate mortgage loans. However, the
amount of such loans made by Applicant’s sub
sidiary is not deemed significant when viewed in
light of the large number of other competitors in
the market.3 Applicant’s mortgage lending subsid
iary also has an office in Houston, but it has not
originated or serviced any mortgage loans through
that office and Applicant has stated^ that it intends
to close the office upon consummation of the
proposed transaction. Therefore, in view of the
limited nature of Applicant’s present activities in
the Houston banking market and the competitive
structure of mortgage lending in that market, it
appears that consummation of the proposal would
not have any significant adverse effects on compe
tition in the relevant area. Furthermore, there is
no evidence in the record indicating that consum
mation of this proposed transaction would result
in any undue concentration of resources, unfair
compectition, conflicts of interest, unsound bank
ing practices or other adverse effects upon the
public interest.
1U nless otherw ise indicated, all banking data are as of
D ecem ber 3 1 , 1976.
2 The relevant market for purposes o f review ing this applica
tion is the H ouston R M A , approxim ated by Harris County and
portions o f Brazoria, Fort B en d, Liberty, M ontgom ery, and
W aller C ounties.
3W ithin the Houston banking market, M cG uire and A p p li
cant generally com pete with 6 com m ercial banks, 17 mortgage
banking firms, and 10 savings and loan associations.
Upon consummation of the proposed acquisi
tion, Applicant would offer McGuire the capability
to fund directly mortgage loans and warehouse
them for short periods of time. To fund such
operations, Applicant proposes to downstream
some of its commercial paper funds to Company.
Through increased access to money markets,
Company should also be able to offer a wider range
of mortgage loan closings, including residential
loans, and to enter additional service markets in
Texas. In addition, the policies of Applicant’s
mortgage lending subsidiary regarding the financ
ing of public housing projects and servicing of
FHA loans to low-income borrowers would be
extended to McGuire. Accordingly, it appears that
the acquisition proposal would produce benefits
to the public that are consistent with and lend
weight toward approval of this application.
As a source of funds for the proposed acquisi
tion ($3.5 million), Applicant will use a portion
of excess proceeds remaining from a $50 million
debt issue in 1973. Thus, it appears that the cost
of the proposed acquisition will be met with funds
currently on hand, without diverting financial re
sources from Applicant’s operations.
Based upon the foregoing and other consid
erations reflected in the record, the Board has
determined, in accordance with the provisions of
§ 4(c)(8) of the Act, that Applicant’s acquisition
of Company can reasonably be expected to pro
duce benefits to the public that outweigh possible
adverse effects. Accordingly, the application is
hereby approved. This determination is subject to
the conditions set forth in § 225.4(c) of Regulation
Y and to the Board’s authority to require such
modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with
the provisions and purposes of the Act and the
Board’s regulations and orders issued thereunder,
or to prevent evasion thereof.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of San
Francisco.
By order of the Board of Governors, effective
May 6, 1977.
V o tin g
fo r
G o v e rn o rs
A b s e n t
a n d
th is
a c tio n :
W a llic h ,
n o t
V ic e
C h a irm a n
C o ld w e ll,
v o tin g :
C h a irm a n
Ja c k s o n ,
B u rn s
G a rd n e r
a n d
a n d
an d
P a rte e .
G o v e rn o r
L illy .
(Signed) G r if f it h L . G a r w o o d ,
[seal]
Deputy Secretary of the Board.
L aw D epartm ent
O r d e r U n d e r S e c t io n s 3 & 4
of
B a n k H o l d in g C o m p a n y A c t
European-American Bancorp,
New York, New York
O rder A pprovin g Formation of Bank
H olding Com pany and Operation of
N ew York Investm ent Com pany
European-American Bancorp, New York, New
York, has applied for the Board’s approval under
section 3(a)(1) of the Bank Holding Company Act
(12 U.S.C. § 1842(a)(1)) of the formation of a
bank holding company through the acquisition of
all the voting shares (except directors’ qualifying
shares) of European-American Bank & Trust
Company (“ Bank” ), New York, New York.
Applicant has also applied, pursuant to section
4(c)(8) of the Bank Holding Company Act (12
U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of
the Board’s Regulation Y (12 CFR § 225.4(b)(2)),
for permission to acquire all of the voting shares
(except directors’ qualifying shares and 130 addi
tional shares) of European-American Banking
Corporation (“ EABC” ), New York, New York.
EABC is an investment company organized and
operating under Article XII of New York State
Banking Law1 (a “ New York Investment Com
pany” ) that engages in the following activities:
provision of lending and international banking
services, including letters of credit, acceptances
and other financing facilities in connection with
exports and imports, international transfers of
funds and foreign exchange services; investments
and foreign exchange transactions for its own
account; leasing improved real estate and data
processing equipment; and maintenance of credit
balances incidental to or related to the foregoing
activities. Although Applicant believes that certain
of EABC’s activities have been determined by the
Board in section 225.4(a)(1), (3), and (6) of Reg
ulation Y to be permissible for bank holding com
panies, it has not applied to acquire shares of
EABC on the basis of those provisions. Rather,
based on the facts and circumstances of this par
ticular case, Applicant has requested under section
225.4(a) of Regulation Y that the Board determine
by specific Order under section 4(c)(8) of the Act
that its operation of EABC as a New York Invest
ment Company is permissible under section 4(c)(8)
of the Act because EABC is engaged in activities
1See N ew York Banking Law §§ 5 0 7 -5 1 9 , 4 M c K in n e y ’s
C o n so lid a ted L a w s (1976).
595
so closely related to banking or managing or
controlling banks as to be proper incidents
thereto.2 Operation of a New York Investment
Company has not heretofore been determined by
the Board to be an activity permissible for bank
holding companies.
Notice of receipt of these applications has been
given in accordance with sections 3 and 4 of the
Act (41 Federal R eg ister 49673) and the time for
filing views and comments has expired. The Board
has considered the applications and all comments
received in light of the factors set forth in section
3(c) of the Act (12 U.S.C. § 1842(c)), and the
considerations specified in section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)). No request for a
hearing has been received.
Applicant is a nonoperating corporation organ
ized for the purposes of becoming a bank holding
company through the acquisition of Bank and of
operating a New York Investment Company
through the acquisition of EABC. Bank was char
tered in 1953 as the Belgium-American Bank and
Trust Company, with the Societe Generale de
Banque, S.A., Brussels, Belgium as the sole
shareholder. In 1968 the Midland Bank, Limited,
London, England; Deutsche Bank A.G., Frank
furt, Germany; and Amsterdam-Rotterdam Bank,
N.V., Amsterdam, The Netherlands, joined as
shareholders, and Bank adopted its present cor
porate title. Shortly afterwards, Societe Generale,
Paris, France, and Creditanstalt Bankverein,
Vienna, Austria, also became shareholders of
Bank. Bank had two branches in Manhattan and
a limited service branch in the Cayman Islands
until October 1974, when it acquired from the
Federal Deposit Insurance Corporation (“ FDIC” )
the deposits, selected assets, and a network of 100
branches of Franklin National Bank (“ Franklin” ),
Brooklyn, New York. Prior to the Franklin trans
action, Bank operated principally as a wholesale
bank, serving primarily European companies in the
American market and selected U.S. companies.
Through the purchase of $1.6 billion of Franklin’s
assets, Bank became a major retail bank in the
Metropolitan New York market,3 with most of its
operations concentrated on Long Island. Bank
2Under § 4 (c)(8 ) of the A ct, the Board may determine that
the prohibitions of Section 4 o f the A ct shall not apply to
the shares of any com pany the activities o f w hich the Board
after due notice and opportunity for hearing has determined
by o rd er o r regu lations to be so c lo se ly related to banking
or m anaging or controlling banks as to be a proper incident
thereto.
3See following page for footnote.
596
Federal Reserve Bulletin □ June 1977
($2.2 billion in domestic deposits) is the 11th
largest bank in the market with 1.5 per cent of
the market’s deposits.4
EABC was organized in 1950 as a New York
Investment Company under Article XII of New
York Banking Law, under the name Belgian American Banking Corporation, replacing and
succeeding to the business of the New York
agency of Banque Beige pour L ’Etranger (Over
seas), Ltd., London, England. EABC, which was
owned by Banque de la Societe Generale de Bel
gique and other of its Belgian affiliates, assumed
its present corporate title in 1968 when Amsterdam-Rotterdam Bank, Midland Bank, and a sub
sidiary of Deutsche Bank became shareholders.
Societe Generale and Creditanstalt Bank later be
came shareholders of EABC. EABC operates
through its main office in New York City, two
branch offices in California and a foreign branch
located in Nassau, The Bahamas. EABC also has
five wholly-owned subsidiaries: Euram Realty
Corporation and Euramcor Realty Corporation,
Jersey City, New Jersey, special-purpose, single
transaction leasing companies that acquired and
lease certain real property as accommodations to
EABC’s customers in accordance with the condi
tions of section 225.4(a)(6)(b) of Regulation Y;
Disk Pack Leasing Corporation, New York, New
York, which is now dormant but which was en
gaged in the leasing of data processing equipment;
and two foreign subsidiaries, European-American
Finance (Bermuda), Limited, Hamilton, Bermuda,
and Euro-Credit S.A., Panama, Panama, Appli
cant’s indirect acquisition of which the Board has
approved by separate letter pursuant to section
4(c)(13) of the Act.
Both Bank and EABC are owned by the same
shareholders in substantially the same proportions.
The proposed transaction is essentially a restruc
turing of the interests of these shareholders
whereby ownership of Bank and EABC will be
transferred to a corporation similarly owned.
While Bank and EABC have many similar banking
powers, Bank engages to a substantial extent in
retail banking, which EABC cannot do because
it is prohibited by New York Banking Law from
accepting deposits from the general public.5 It
appears from the facts of record that Bank and
3 The M etropolitan N ew York market consists o f the five
boroughs o f N ew York C ity, plus N assau, Putnam, R ockland,
and W estchester C ounties, and w estern Suffolk C ounty, all
in N ew York State, as w ell as the northern two-thirds o f Bergen
County and eastern Hudson County in N ew Jersey and south
western Fairfield County in C onnecticut.
4Bank deposit data are as o f D ecem ber 3 1, 1976; market
share and market rank inform ation are as o f June 3 0, 1975.
EABC have concentrated on complementary lines
of service. EABC engages primarily in interna
tional lending and banking services, and Bank
concentrates on providing domestic lending and
banking services. This separation derives in part
from statutory restrictions on EABC’s general de
posit-taking and trust powers, and in part from
a respective business emphasis determined by the
common management of the two companies. In
light of the above and other facts in the record,
it appears that consummation of Applicant’s pro
posals will eliminate no significant competition.
There is a long history of common ownership,
common management, and cooperative operation
of the two institutions, and it appears unlikely that
this relationship would be altered if the subject
applications were denied. On the basis of the
record before it, the Board concludes that compet
itive considerations are consistent with approval
of the applications.6
The financial and managerial resources of Ap
plicant, which will be primarily dependent upon
those of Bank and EABC, are considered satis
factory and its future prospects appear favorable.
Thus, considerations relating to banking factors
are consistent with approval of the application to
acquire Bank.
In acting on the application to acquire EABC,
the Board must first determine under the provisions
of section 4(c)(8) of the Act whether the activities
of EABC, as a New York Investment Company,
are closely related to banking or managing or
controlling banks. The New York Investment
Company is a unique type of banking and financ
5N ew York Banking Law § 50 9 , 4 M c K in n ey 's C o n solidated
L a w s (1976).
6 In reaching its determination on com petitive factors in this
application, the Board took into consideration the fact that
A pplicant w ill be ow ned by the sam e group o f foreign banks
that presently controls Bank and E A B C and that controlled
com bined total assets on a w orld-w ide basis o f nearly $ 120 billion
at year-end 1975. The subject application proposes a reorganiza
tion of these banks’ existing interests in Bank and E A B C , and
does not represent an expansion of their joint presence in U .S .
markets. N o adverse com m ents have been received from the
Department of Justice on this proposal. In a letter dated July
18, 1975, from A ssistant A ttorney General Thom as R. Kauper
to Congressm an W right Patman, Mr. Kauper stated that the
Department “ w as aware of no evid en ce which w ould indicate
that the E A BT C [Bank] venture is part of a more com prehensive
illegal arrangement affecting the dom estic or foreign com m erce
of the U nited States. Nor does it appear that the joint venture,
when view ed in the context of a very large market containing
numerous pow erful dom estic and foreign com petitors, m ay
substantially lessen com petition as defined by the courts under
Section 7 o f the C layton A c t.” It also appears from the record
of this application that the existing joint ow nership o f Bank and
EA B C by six large European banks w ould not be altered if the
subject applications w ere denied. A ccordin gly, in these circum
stances, A pplican t’s ow nership by six large European banks
presents no adverse com petitive considerations.
L aw D epartm ent
597
ing corporation organized under a separate article
of New York Banking Law that is believed to have
no close institutional parallel under the laws of
other States. Its singular powers and status chiefly
reflect the diversity of New York’s financial mar
kets and the attractiveness of such nlarkets to
domestic and foreign financial institutions alike.
There are now two principal types of New York
Investment Companies. One type engages pri
marily in financing retail sales; included among
this group are some of the Nation’s largest finance
companies, such as General Motors Acceptance
Corporation and Commercial Credit Company.
The other type, including EABC, is engaged in
transacting virtually all of the usual activities of
a commercial bank, except the general business
of accepting deposits. These “ banking” Invest
ment Companies,7 like EABC, are all ultimately
controlled or affiliated with foreign banking orga
nizations and are engaged primarily in interna
tionally-related activities. In this regard, it appears
that the New York Investment Company has, over
the years, served as a means for foreign bank entry
into New York in cases where entry through a
direct branch or agency was either unavailable or
undesirable for the purposes sought.
Each of the lending and banking services pres
ently offered by EABC is offered by commercial
banks generally and, in this connection, EABC
competes with foreign banking organizations and
domestic commercial banks and their Edge Cor
poration subsidiaries in the provision of such
services in New York.8 It is the Board’s view,
in light of the above and other facts of record,
especially the unique structural and competitive
circumstances existing in New York, that the
present activities of EABC are closely related to
banking.9 In fact, EABC’s activities are so like
those generally provided by commercial banks,
that there is a substantial question whether EABC
should be considered a “ bank” for purposes of
the Act.
Section 2(c) of the Act (12 U.S.C. § 1841(g))
defines the term “ bank” to include any institution
organized under the laws of any State of the United
States which “ accepts deposits that the depositor
has a legal right to withdraw on demand” and
engages in the business of making commercial
loans. EABC is a State-chartered corporation that
accepts “ credit balances” for the account of its
customers that the customers have a legal right
to withdraw on demand, and it engages in the
business of making commercial loans. Accord
ingly, if EABC’s credit balances are deposits
within the meaning of section 2(c), it would satisfy
the definitional test.
In 1971, the Board determined that a similar
New York Investment Company was not a “ bank”
within the meaning of section 2(c) based largely
on three considerations.10 First, the Board was
persuaded at that time that Congress meant to
include in the definition of “ bank” only those
institutions that offer to the public the general
convenience of checking account facilities. In this
regard, it was found that the New York Investment
Company involved could accept credit balances
only as an incident to transactions it was legally
permitted to perform for its customers, that it could
7In addition to E A B C , there are: J. Henry Schroder Banking
Corporation, N ew Y ork, N ew Y ork, a subsidiary o f Schroders,
L td., a registered foreign bank holding com pany; FrenchAm erican Banking Corporation, N ew Y ork, N ew York, a
subsidiary o f Banque N ationale de Paris, Paris, France, a
registered foreign bank holding com pany; Nordic Am erican
Banking Corporation, N ew York, N ew York, w hich is ow ned
by Svenska Handels-banken; and Baer Am erican Banking
Corporation, N ew York, N ew York, a subsidiary o f a private
S w iss bank.
8 The fo llo w in g banking and lending activities are those
currently engaged in directly by E A B C under authority of
section 508 o f N ew York Banking Law:
1. B orrow ing and lending m oney (without lim itation as to
a single borrower);
2. A cquiring and disposing o f bills o f exchange, drafts,
notes, acceptances, and other obligations for the paym ent of
m oney, including bonds and m ortgages on real property; m ak
ing loans upon the security o f such bonds and m ortgages, and
accepting bills o f exchange or drafts upon them;
3. Issuing letters o f credit;
4. B uying and selling foreign exchange;
5. R eceivin g funds for transm ission to foreign countries;
6. R eceivin g and maintaining credit balances incidental to,
or arising out o f, the exercise o f its law ful pow ers;
7. Investing in equity securities o f any com pany (where such
investm ents constitute no more than 5 per cent o f the co m
pany’s outstanding voting stock); and
8. Operating a foreign branch and through that branch
receiving funds in the form o f tim e account credit balances
(alm ost entirely from foreign persons), lending such funds to
banks and corporations primarily located outside the United
States, and placing such funds in tim e accounts with banks.
9T w o courts that have considered the “ clo se ly related”
language in section 4 (c)(8 ) o f the A ct have concluded, inter
alia, that an activity generally engaged in by banks directly
would generally qualify as “ clo sely related” to banking or
managing or controlling banks within the m eaning o f the
statute. N a tio n a l C ou rier A sso c ia tio n v. B o a rd o f G overn ors
of the F ederal R ese rv e System , 5 16 F .2d 1229 (D .C . Cir.
1975); A la b a m a A sso c ia tio n o f Insurance A g en ts v. B o a rd o f
G overn ors o f the F ederal R ese rv e S y stem , 533 F .2d 224 (5th
Cir. 1976), m o d ified ,____ F .2 d ____ (5th Cir. January 10, 1977).
10Board letter o f N ovem ber 8, 1971 to the San Francisco
R eserve Bank concerning the status o f French-Am erican
Banking Corporation; see also Board Order o f Feburary 7,
1972 approving the application of B anque N ationale de Paris
to retain French-A m erican Banking Corporation under section
4 (c)(9) of the A ct, 58 Federal R eserve B u l l e t i n 312 (1972).
598
Federal Reserve Bulletin □ June 1977
not solicit or accept deposits of idle funds, and
that its customers were not permitted to use such
balances in the manner of a general checking
account, although drafts could be drawn on such
accounts to pay for the import and export of goods.
Second, the New York Superintendent of Banks
had expressed the view that the distinction between
credit balances and deposits was “ meaningful”
and “ administrable” in New York. Third, the
company involved was principally engaged in fi
nancing or facilitating transactions in international
or foreign commerce. Since that time, the Board
has generally reviewed the activities of New York
Investment Companies owned by foreign banks in
the course of considering proposed legislation to
regulate foreign bank activities in the United
States, and has recommended to Congress that
these New York Investment Companies, such as
EABC, should be subject to Federal banking reg
ulation, including reserve requirements and inter
est rate controls on their credit balances. In this
regard and in other situations, the Board has stated
that it believes the credit balance accounts of
foreign bank agencies and banking New York
Investment Companies are in many respects the
functional equivalent of deposits when maintained
in connection with the provision of traditional
commercial banking services.1 The Board, how
1
ever, has not determined that credit balances
should be defined as demand deposits within the
meaning of section 2(c) of the Act.
Viewing the credit balance activities of EABC
in light of these precedents and other facts in the
record, the Board is satisfied that the consid
erations reflected in its 1971 ruling apply equally
to EABC and that therefore EABC should not be
regarded as a “ bank” because it does not accept
demand deposits within the meaning of section
2(c) of the Act. The focus of the Act’s legislative
history on the general provision of checking ac
counts and the longstanding acceptance of the
provision of checking accounts as one of the
features distinguishing commercial banks from
other financial institutions are factors that must be
given particular weight.12 When such factors are
“ S ee the B oard’s Order o f M ay 3 0 , 1975, denying Bank
o f T o k y o ’s application to acquire T okyo Bancorp International
(H ouston), In c., H ouston, T exas, under section 4 (c)(9 ) o f the
A ct, 61 Federal R eserve B u l l e t i n 4 4 9 (1975); and a Board
letter o f March 17, 1977, to Citibank, N .A ., N ew York, N ew
Y ork, regarding a proposal by Grindlays Bank, L td., L ondon,
England, to establish an agency in N ew York City.
12See U .S. v. P h iladelphia N a tio n a l B ank, 374 U .S . 3 2 1,
356 (1 9 6 2 ), where the Suprem e Court in explaining the cluster
of products and services that make com m ercial banking a
considered with the historical legal and adminis
trative distinction between credit balance and de
posit accounts in New York, and Congress’ gen
eral intent to exclude international banking cor
porations from the Act’s definition of “ bank,” 13
the Board believes that the Act need not be ex
tended administratively to include institutions such
as EABC or other New York Investment Compa
nies owned by foreign banks, so long as they
continue to engage primarily in international
banking activities. The resolution of the status of
such companies under Federal banking laws, in
light of the above considerations, is more properly
a matter for legislative determination and, in this
connection, the Board has recommended to Con
gress that New York Investment Companies
owned or controlled by foreign banks be subject
to the same Federal regulation that Congress may
impose on branches and agencies of foreign banks.
Although, as determined above, EABC is pres
ently engaged in activities closely related to bank
ing, Applicant has also applied to engage through
EABC in all activities permissible to EABC as
a New York Investment Company under Article
XII of the New York Banking Law, except that
Applicant has agreed that (1) notwithstanding its
broad investment powers, EABC will not invest
in more than 5 per cent of the voting shares of
any company except with prior Board approval
under the Act, and (2) EABC will continue to
conduct its indirect leasing activities in accordance
with section 225.4(a)(6) of Regulation Y. Because
EABC is already affiliated with Bank, a member
bank, it is foreclosed by section 20 of the GlassSteagall Act (12 U.S.C. § 377) from engaging
principally in securities underwriting and distri
bution activities even though Article XII of the
New York Banking Law permits a broad range
of such securities activities to New York Invest
ment Companies. Applicant has stated that EABC
is not now engaged in underwriting activities and
in the future would only engage in underwriting
distinct line o f com m erce for purposes o f section 7 o f the
Clayton A ct, noted that—
Som e com m ercial banking products or services are so
distinctive that they are entirely free o f effective com
petition from products or services of other financial
institutions; the checking account is in this category.
13The definition of “ bank” in section 2(c) of the Act
specifically excludes Edge A ct and A greem ent Corporations
operating under sections 25(a) and 25 of the Federal R eserve
A ct, respectively, and any other “ organization that does not
do business within the U nited States except as an incident to
its activities outside the U nited S ta te s.”
L aw D epartm ent
activities permissible to Bank.14 Subject to these
limitations, EABC’s present and proposed activi
ties all appear to be closely related to banking.
In order to approve the subject application by
Order under section 4(c)(8), the Board is required
to determine that Applicant’s proposed operation
of EABC as a New York Investment Company
is a proper incident to banking or managing or
controlling banks. This test requires the Board to
consider whether Applicant’s acquisition and
operation of EABC pursuant to this application
“ can reasonably be expected to produce benefits
to the public, such as greater convenience, in
creased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair
competition, conflicts of interest, or unsound
banking practices.” This statutory test necessitates
a positive showing by Applicant that the public
benefits of its proposal outweigh the possible ad
verse effects of its proposed acquisition. In the
present case, the Board has determined that, based
on the particular facts and circumstances and
unique public benefits associated with this appli
cation, factors relating to the convenience and
needs of the community to be served lend weight
to approval of Applicant’s application to acquire
Bank, and the public benefits of its application to
acquire EABC, subject to the conditions noted in
this Order, outweigh the possible adverse effects
of that proposal and therefore satisfy the “ proper
incident” test of section 4(c)(8) of the Act.
It is expected that approval of the subject appli
cations will result in the more efficient operation
of both Bank and EABC through improved internal
supervision. Moreover, interposition of a holding
company structure in this situation can be expected
to reduce borrowing costs and permit Bank and
EABC to raise capital more efficiently; in particu
lar, since Applicant will become a primary or joint
obligor on Bank’s note to the FDIC arising out
of the Franklin acquisition, EABC’s earnings may
also be applied toward reducing that debt, thus
better enabling Bank to meet the convenience and
needs of the communities it serves. In this regard,
Applicant specifically expects to reduce the bor
rowing costs of Bank and EABC through the
14 The Board recently decided to defer action on a proposal
to make underwriting and dealing in Federal Government
securities and general obligations o f States or their subdivisions
a perm issible activity for bank holding com panies. Board Order
of October 19, 1976, 62 Federal R eserve B u l l e t i n 9 2 8 , 973
(1976).
599
commitment of its shareholder banks to advance
$25 million, $15 million for the benefit of Bank,
replacing more expensive debt, and $10 million
to EABC as additional capital. Approval of this
particular application will also insure that, not
withstanding its broad powers under Article XII
of New York Banking Law, EABC, an existing
affiliate of Bank, will only engage in activities that
are closely related to banking and proper incidents
thereto.
EABC, like similar New York Investment
Companies owned by foreign banks and agencies
of foreign banks, does not have to maintain re
serves against its credit balance accounts, and
these accounts are not subject to interest rate
limitations. While maintenance of such accounts
may not cause EABC to be a “ bank” for purposes
of section 2(c) of the Act, the Board believes that
for purposes of reserve requirements and interest
rate limitations, such accounts should be consid
ered to be deposits. The Board has, in this regard,
specifically recommended to the Congress that it
be given the authority to impose reserve require
ments and interest rate limitations on all foreign
bank operations in this country—whether con
ducted through branches, agencies, New York
Investm ent C om panies, or bank subsidi
aries—because of the growing importance of such
institutions in this country’s money markets and
their particular ability to transmit funds from
abroad. Thus, from a broader structural and mon
etary policy viewpoint, the Board is seriously
concerned by the fact that credit balance accounts
maintained by foreign banking organizations are
not generally subject to reserve requirements. In
the Board’s view, any proposal under section
4(c)(8) of the Act that would have the effect of
diminishing the reserve base either by facilitating
the acceptance of reserve-free credit balances or
encouraging a shift from reservable deposits to
such balances would entail serious adverse effects.
This particular application, however, involves
only a reorganization of the ownership of EABC,
and insofar as the credit balances of EABC are
concerned, the proposal merely preserves the
status quo and does not reduce the reservable
deposit base of the banking system or otherwise
create an opportunity to shift deposits that does
not already exist. If necessary, and in particular
if a deliberate attempt to evade or circumvent
domestic reserve or interest requirements were
discovered, the Board could in the future proceed
by regulation or otherwise to subject credit balance
accounts held by member bank affiliates engaged
600
Federal Reserve Bulletin □ June 1977
in banking operations to the requirements of Reg
ulations D and Q .15 However, to subject only
EABC and possibly one or two other foreign bank
operations to these requirements at this time,16
when most other foreign bank operations are con
ducted free from monetary controls, would put
these institutions at a competitive disadvantage
under existing circumstances. The most equitable
solution to the problem of reserve-free credit bal
ance accounts at foreign bank operations is uni
form foreign bank legislation, a solution the Board
has proposed and consistently recommended since
1974.
EABC has established two branches in Califor
nia at which it engages primarily in international
banking and lending services, but at which it may
also engage in purely domestic commercial lend
ing activities. The Board does not believe that it
was within the intent of Congress to authorize
under section 4 (c)(8) of the Act the ownership
of companies that would enable domestic bank
holding companies to conduct an international
banking business on a multi-State basis outside of
the explicit legal framework set up by the Congress
in sections 25 and 25(a) of the Federal Reserve
Act.17 In particular, EABC’s California offices are
not subject to the restrictions on domestic business
^ A p proxim ately 70 per cent o f E A B C ’s credit balance
accounts are m aintained at its foreign branch and payable
abroad, and deposits payable only outside the U nited States
are generally exem pt from reserve and interest rate require
m ents.
16J. Henry Schroder Banking Corporation is also affiliated
with a m ember bank, and Grindlays Bank, L td., in which
Citibank has a substantial equity interest, plans to open an
agency in N ew York at w hich credit balance accounts w ill
be m aintained.
17 In 1972, the Board permitted a foreign bank holding
com pany under section 4 (c)(9 ) o f the A ct to retain its interest
in a N ew York Investm ent Com pany even though it was
organizing a bank subsidiary in C alifornia. Board Order of
February 7, 1972 approving Banque N ationale de Paris’ reten
tion o f French-Am erican Banking Corporation, 58 Federal
Reserve B u l l e t i n 311 (1 9 72). In 1975, the Board denied an
application by Bank o f T okyo, T okyo, Japan, a foreign bank
holding com pany, to acquire an international banking co m
pany, T okyo Bancorp International (H ouston), In c., in a State
outside o f its State o f principal banking operations under
section 4 (c)(9 ). Board Order o f M ay 3 0 , 1975, 61 Federal
R eserve B u l l e t i n 4 4 9 (1 9 7 5 ). The Board subsequently ap
proved Bank o f T o k y o ’s application to acquire the same
corporation as an A greem ent Corporation subsidiary subject
to the restrictions o f section 25 o f the Federal R eserve A ct.
Board letter o f January 2 6, 1976, 62 Federal R eserve B u l l e
t i n 164. W hile Applicant is ow ned by foreign banks, it w ill
not be a foreign bank holding com pany, and thus the issue
presented in this case is whether a dom estic bank holding
com pany, irrespective o f its ow nership, should be allow ed to
use section 4 (c)(8 ) o f the A ct to conduct a com bination of
dom estic and international banking activities across State
borders.
imposed on Edge Act and Agreement Corpora
tions. Acquisition of such offices could give Ap
plicant a competitive advantage over other domes
tic banking organizations and could thus under
mine the domestic structure of multi-State interna
tional banking competition that has been carefully
prescribed by the Congress to avoid the conduct
of domestic commercial banking operations at
offices in more than one State. Such possible
adverse effects on the structure and conduct of
banking operations in this country are not, in the
Board’s judgment, outweighed by any particular
benefits to be derived from Applicant’s acquisition
of EABC’s California offices. The competitive
benefits that may be derived from Applicant’s
presence in California can be equally achieved
through Applicant’s direct or indirect acquisition
of an Agreement Corporation subsidiary in Cali
fornia, in accordance with the framework estab
lished by the Congress for the conduct of such
activities on a multi-State basis.18 Accordingly, the
Board has determined that ownership by Applicant
of EABC, if EABC maintains its California of
fices, is not a proper incident to banking or man
aging or controlling banks, and that to conform
with this determination Applicant must, if it ac
quires EABC, divest EABC’s California offices
within two years from the date as of which Appli
cant becomes a bank holding company.
EABC also has a branch in Nassau, The Ba
hamas, which engages in the types of banking
activities conducted by shell branches of U.S.
banks. So long as this branch limits its activities
to those permissible for EABC under this Order,
the Board believes that Applicant may operate this
branch of EABC under section 4(c)(8) of the Act.19
If Applicant or EABC proposes to engage in
activities outside this country that are not permis
sible for EABC under this Order, Applicant may
18 The Board has considered A pplicant subm issions on this
issue and believes the fact that E A B C can engage in certain
dom estic activities not perm issible to Edge A ct or A greem ent
Corporations w eighs in favor o f denial rather than approval
for the reasons cited in this Order.
19The Board notes that R egulation Y currently provides for
the establishm ent of d e novo branches under section 4(c)(8)
in accordance with the procedures described in section
22 5 .4 (b )(1 ) of Regulation Y . T hese procedures, requiring local
new spaper publication, are designed for dom estic expansion
of section 4 (c)(8) offices; any bank holding com pany proposing
to establish a branch of a section 4 (c )(8 ) com pany outside of
the U nited States should file a specific application to do so
under section 2 2 5 .4 (b )(2 ). The Board has directed its staff to
develop proposed procedures for the establishm ent of foreign
offices of section 4 (c )(8 ) com panies to be published for public
com m ent in the Federal R egister.
L aw D epartm ent
file a separate application under section 4(c)(13)
of the Act to organize a subsidiary to engage in
those activities.
Applicant has also applied to engage in three
activities permissible for New York Investment
Companies but in which it is not now engaged
and has no fixed present intention to engage:
underwriting activities permissible to Bank, a
member bank, dealing in coin and bullion, and
acting as financial agent of the Federal Govern
ment and as depositary of Federal money. The
Board has deferred consideration of a proposal to
specify the first of these activities to be permissible
for bank holding companies under Regulation Y,20
and in the Board’s judgment, Applicant has not
established any public benefits that would be
derived from its engaging in any of these three
activities through EABC. For this reason, the
Board is unable to conclude that ownership of
EABC, if EABC engaged in these activities,
would be a proper incident to banking or managing
or controlling banks. The Board is compelled to
conclude instead, in light of the facts in the record,
that EABC, as a subsidiary of a domestic bank
holding company, should not engage in these
activities until it is able to present specific propos
als concerning them and the manner in which and
extent to which they would be conducted, and the
specific public benefits that would be derived.
In its consideration of this proposal, the Board
also noted that Applicant will serve as a single
vehicle for the ownership of Bank and EABC by
their existing foreign bank shareholders. The
Board has previously determined that no one of
the foreign bank shareholders of Bank is now a
bank holding company and that the shareholders
have not heretofore formed themselves into a
“ company” , as defined in the Act, to control
Bank. On the basis of the record, this reorganiza
tion does not appear to affect those conclusions.
However, the Board is concerned that the close
association of Applicant’s shareholders could
create opportunities for additional investments and
activities by this group in the United States under
circumstances that could be inconsistent with the
purposes of the Act. Accordingly, the Board’s
approval of these applications is conditioned on
a requirement that Applicant’s foreign bank share
holders not proceed, otherwise than through Ap
plicant, in substantially the same combination to
engage directly or indirectly in additional banking
2 Supra, n. 14.
0
601
or nonbanking activities or business ventures in
this country.21 The Board may, in any event,
reconsider the question whether the shareholders
have combined to act together as a company if
in the future it appears the shareholders are not
acting independently as essentially passive inves
tors, and take appropriate action under the Act.
On the basis of the foregoing and all the facts
of record, the Board has determined that the con
siderations affecting the competitive, banking, and
convenience and needs factors under section 3(c)
of the Act, and the balance of the public interest
factors the Board must consider under section
4(c)(8) of the Act in permitting a bank holding
company to engage in an activity on the basis that
it is closely related to banking both favor approval
of the applications subject, however, to the fol
lowing conditions:
(1) That EABC continue to engage principally
in the financing or facilitating of transactions in
international or foreign commerce, and not accept
demand deposits;
(2) That EABC comply with all reserve and
interest rate requirements that may be imposed on
it either as a result of action of the Board or
enactment of legislation;
(3) That Applicant cause EABC to divest its
offices in California within two years from the date
as of which Applicant becomes a bank holding
company;
(4) That EABC confine the activities of its
Nassau branch to those permissible to EABC at
its head office under this Order;
(5) That EABC not engage in the activities of
underwriting, selling, or distributing securities,
buying or selling coin and bullion, or acting as
a financial agent of the United States Government
or as a depositary of public moneys of the United
States, or in any new activity in which New York
Investment Companies by subsequent enactment
may be empowered to engage, without the prior
approval of the Board; and
(6) That Applicant’s shareholders, and their
parent and subsidiary organizations, will not, ex
cept through Applicant with the Board’s approval
under the Act, engage, as part of a group consist-
21 The Board has im posed sim ilar conditions in other cir
cum stances where a bank is to be ow ned by several banking
organizations. See Board Order of M ay 6 , 1977 approving
the am ended application of SY B Corporation, Oklahom a C ity,
Oklahom a, to becom e a bank holding com pany and Board letter
of January 26, 1976, to T hom as L. Farmer, Esq. re U B A F
Arab-American Bank, N ew York, N ew York.
602
Federal Reserve Bulletin □ June 1977
ing of substantially the same companies as are
shareholders of Applicant, in any additional bank
ing or nonbanking activities or business ventures
within the United States, other than normal bank
ing transactions,22 and that none of Applicant’s
shareholders will sell, assign, or transfer any of
its shares of Applicant unless it has obtained the
agreement of any purchaser, assignee, or trans
feree to comply with this condition.
Subject to the conditions prescribed in this
Order, the applications are hereby approved based
on the record and for the reasons summarized
above. The acquisition of Bank shall not be made
before the thirtieth calendar day following the
effective date of this Order; and the acquisition
of Bank and EABC shall not be made 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 New
York pursuant to delegated authority. The deter
mination as to Applicant’s operation of EABC is
subject to the conditions set forth in this Order
and in section 225.4(c) of Regulation Y, and to
the Board’s authority to require reports by and
make examinations of bank holding companies and
their subsidiaries, and to require such modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the
provisions and purposes of the Act and the Board’s
Orders and regulations issued thereunder, or to
prevent evasion thereof.
By order of the Board of Governors, effective
May 10, 1977.
V o tin g
f o r th is
Ja c k s o n , a n d
a c tio n : G o v e r n o r s
P a rte e .
n o r L illy .
A b s e n t
a n d
G o v e rn o r
V o tin g
n o t
W a llic h ,
a g a in s t th is
v o tin g :
C o ld w e ll,
a c tio n :
G o v e r
G a rd n e r.
(Signed)
[s e a l ]
C h a irm a n
T heodore
E.
B u rn s
a n d
A l l is o n ,
Secretary of the Board.
22For the purposes o f this condition, the exception for normal
banking transactions is intended to permit several of A ppli
cant’s shareholders to participate independently in the same
syndicated loan or other credit transaction, to maintain inde
pendently normal correspondent relationships with the sam e
dom estic bank, and to engage independently in other transac
tions o f that character. The exception is not intended to permit
the joint establishm ent o f representative offices, branches,
agen cies, or the joint organization o f or acquisition o f voting
shares in a U nited States organization by substantially the sam e
shareholders as ow n Applicant.
D issenting Statem ent of G overnor L illy
I concur in the majority’s action approving the
application of European-American Bancorp to ac
quire European-American Bank & Trust Com
pany, but I would deny its application to acquire
European-American Banking Corporation, New
York, New York, pursuant to section 4(c)(8) of
the Act. In my view, EABC is a “ bank” for
purposes of the Bank Holding Company Act and
it is thus inappropriate to approve its acquisition
as a “ nonbanking” company under the standards
of section 4(c)(8) of the Act. In this regard, I
cannot agree with the majority’s reliance on an
earlier 1971 ruling that a similar New York In
vestment Company was not a “ bank” under the
Act. Essentially, I believe that, since that ruling,
the Board has obtained sufficient additional infor
mation concerning the activities of the “ banking”
New York Investment Companies owned by
foreign banks to conclude properly that such insti
tutions should be considered “ banks” under the
Act.
In my judgment, Congress only intended to
exclude from the definition of “ bank” in section
2(c) of the Act organizations that are not engaged
in domestic commercial banking activities, and it
is in this context that the rather technical elements
of the definition of “ bank” in the Act should be
analyzed. It seems clear from the record of this
case and from the Board’s analysis of the activities
of other “ banking” New York Investment Com
panies that EABC and similar companies, though
unable to offer retail banking services and though
primarily engaged in international banking activi
ties, are nevertheless engaged in substantial do
mestic commercial banking activities. The credit
balances that these organizations maintain for their
customers’ accounts can be transferred for a vari
ety of purposes and in many respects appear to
overlap the demand deposit services provided by
ordinary commercial banks. It appears that cus
tomers of EABC and similar companies may draw
against their credit balances by mail, telephone,
or cable instruction, and, in some cases, by draft,
which is the functional equivalent of a check, for
the purpose of transferring funds to third parties
in settlement of a wide variety of financial and
commercial transactions. The fact that a customer
cannot legally write a check against his existing
balance and the fact that EABC and similar compa
nies can only maintain credit balance accounts re
lated to other activities still do not change the nature
of business being conducted or the practical equiva
L aw D epartm ent
lent of credit balances to demand deposits in the
context of providing other wholesale commercial
banking services. In fact, for monetary policy pur
poses, the Board views the equivalency as strong
enough to include these balances in the definition
of M -l.
Accordingly, I believe this application presents
an excellent opportunity to abandon the 1971 rul
ing and henceforth to treat “ banking” New York
Investment Companies as “ banks” for purposes
of the Act, especially where as here, they are
owned by foreign banking organizations that are
particularly well-suited to use these entities for the
conduct of wholesale commercial banking activi
ties. To adhere to that ruling results, I believe,
in continuing anomalies, as evidenced in the ma
jority’s decision where it is clearly implied that
credit balances should not be considered deposits
for purposes of the Bank Holding Company Act
definition of a bank but should be for monetary
policy purposes. While I appreciate the legal dis
tinctions drawn under the Act and the legislative
history and administrative precedents militating
against a ruling that EABC is a bank, and while
I fully support the conditions imposed by the
majority in its decision, I would, for the reasons
indicated above, nevertheless deny the application
to acquire EABC on the basis that it is a “ bank”
within the meaning of the Act and thus must be
acquired under section 3 of the Act, if at all.
O rder G ranting M otion
to
R eopen R ecord
International Bank,
Washington, D.C.
In the M a tter of the Determ ination of
Control O ver Financial G eneral Bankshares , Inc.
On August 1, 1974, the Board entered an Order
determining that International Bank, Washington,
D.C., had not terminated its control over Financial
General Bankshares, Inc., Washington, D.C.,
which International Bank admittedly had in 1966,
and preliminarily determining, pursuant to §
2(a)(2)(C) of the Bank Holding Company Act (12
U.S.C. 1841(a)(2)(C)), that International Bank ex
ercises a controlling influence over the manage
ment and policies of Financial General Bank
shares. International Bank requested a hearing to
contest the Board’s determinations of control and,
by Order dated October 4, 1974 (39 Federal R e g
ister 36510), the Board ordered such a hearing
before Frederick Denniston, Administrative Law
Judge, to be conducted in accordance with the
603
Board’s Rules of Practice for Formal Hearings and
the Board’s Order of August 1, 1974.
On March 10, 1977, the Board ordered the
Administrative Law Judge not to prepare a recom
mended decision but to submit and certify the
record of the hearing to the Board not later than
April 30, 1977. The Board further ordered that
the record include (1) a statement of the issues
for decision by the Board, jointly agreed to by
the parties and separately stated as to those issues
on which there is not agreement; (2) proposed
findings of fact and conclusions of law on behalf
of each party; (3) such brief and reply brief as
each party may wish to file in support of those
proposed findings of fact and conclusions of law.
The hearing officer has complied with the Order
and so certified the record.
At the time of his certification there was a
pending motion by International Bank to reopen
the record to introduce additional documents as
well as a response by Board’s counsel to that
motion and a further response and motion of
International Bank. The hearing officer, because
of the time constraints, was not able to act on
these motions and they were, therefore, certified
to the Board for its action.
Among the issues certified by the hearing ex
aminer is the question whether the proceeding is
“ moot” due to the then-proposed sale of Interna
tional Bank’s holdings in Financial General to a
group of investors headed by J. William Midden dorf, II. The pending motion was obviously in
tended to provide information bearing on changes
in the relationship between International Bank and
Financial General and thus, on the “ mootness”
issue.
The Board believes that the use of the term
“ moot” misconstrues the issues involved in the
proceeding. The fact that the relationship between
International Bank and Financial General may
have changed does not relieve the Board of the
obligation to determine on the record of this pro
ceeding whether control or a controlling influence
existed at any point in time. Rather, if such control
or a controlling influence existed, a subsequent
change in that relationship may bear only on the
nature of any affirmative relief that may be ordered
by the Board.
However, in an attempt to expedite this pro
ceeding and resolve all issues relating thereto at
one time, the Board has determined to grant the
motion in part.
It is hereby ordered, That the record in this
proceeding is reopened and the matter is referred
604
Federal Reserve Bulletin □ June 1977
back to the Administrative Law Judge for such
proceedings as may be consistent with this order.
In this regard the parties are directed to develop
additional facts, to formulate supplemental issues,
and to submit to the Administrative Law Judge
supplemental briefs and proposed findings of fact
relating to whether, assuming control or a control
ling influence over Financial General has been
exercised by International Bank, such relationship
has been terminated. In this regard the possible
applicability of § 2 (g)(3) of the Bank Holding
Company Act and any relationship between the
Middendorf group and International Bank should
be explored. Furthermore, assuming the position
is taken that any such control relationship has not
been terminated, the question of what conditions
should be imposed by the Board to insure such
termination should be addressed. Further, if it is
contended that control or a controlling influence
existed at any point in time, the question of what
affirmative relief, if any, should be ordered by the
Board with respect to the future activities of Inter
national Bank and Financial General should be
addressed.
It is further ordered , That the hearing officer
shall set such schedules on this matter as shall
allow him to certify the additional portions of the
record to the Board not later than July 15, 1977.
As with respect to the prior certification, the hear
ing officer shall certify such record without a
recommended decision.
By order of the Board of Governors, effective
May 20, 1977.
V o tin g
fo r
th is
a c tio n :
V ic e
C h a irm a n
G o v e rn o rs C o ld w e ll, Ja c k s o n , P a rte e , a n d
an d
n o t v o tin g : C h a irm a n
B u rn s
(Signed)
P r i o r
C e r t i f i c a t i o n s
B
H
n
k
an d
A b s e n t
G o v e r n o r W a llic h .
L.
G r if f it h
G arw ood,
D eputy Secretary of the Board.
[s e a l ]
a
a n d
G a rd n e r
L illy .
o
l d
i n
g
C o m
p a
U
n
n
d
y
e r
T
a
t h
x
A
e
c
t
o
f
1976
The Signal Companies, Inc.,
Beverly Hills, California
P rior and Final Certifications Pursuant to the
Bank H olding Com pany Tax A c t of 1976
[Docket No. TCR 76-103]
The Signal Companies, Inc., Beverly Hills,
California (“ Signal” ), has requested a prior cer
tification pursuant to § 6158(a) of the Internal
Revenue Code (the “ Code” ), as amended by §
3(a) of the Bank Holding Company Tax Act of
1976 (the “ Tax Act” ), that the sale on September
29, 1970 of 462,636 shares of the outstanding
voting stock of the Arizona Bank, Phoenix, Ari
zona (“ Bank” ), by Signal Equities Company,
Phoenix, Arizona (“ Equities” ), a subsidiary of
Signal, to Arizona Equities, Inc., Phoenix, Ari
zona (“ Arizona” ), was necessary or appropriate
to effectuate the policies of the Bank Holding
Company Act (12 U.S.C. § 1841 et seq.) (“ BHC
Act” ). Signal has also requested a final certifi
cation pursuant to § 6158(c)(2) of the Code that
Signal has (before the expiration of the period
prohibited property is permitted under the BHC
Act to be held by a bank holding company) ceased
to be a bank holding company.1
In connection with these requests, the following
information is deemed relevant for purposes of
issuing the requested certifications:2
1. Signal is a corporation organized under the
laws of the State of Delaware on June 25, 1928.
Equities is a corporation organized under the laws
of the State of Arizona. Signal acquired all of the
outstanding shares of Equities on September 1,
1967.
2. On September 1, 1967, Signal acquired in
direct ownership and control, through Equities, of
462,636 shares, representing 52.06 per cent of the
total outstanding voting shares, of Bank.
3. Signal would have been a bank holding
company on July 7, 1970, if the BHC Act
Amendments of 1970 had been in effect on such
date, by virtue of its indirect ownership and control
on that date, through Equities, of more than 25
per cent of the outstanding voting shares of Bank.
4. On September 29, 1970, Equities sold sub
stantially all of its assets, including 462,636
shares, representing 52.06 per cent of the total
outstanding voting shares of Bank, to Arizona for
cash.
5. On September 29, 1970, Signal held prop
1 Pursuant to §§ 2(d )(2) and 3 (e)(2) of the Tax A ct, in the
case o f any sale that takes place on or before D ecem ber 31,
1976 (the 90th day after the date of the enactment of the Tax
A ct), the certification described in § 6158(a) shall be treated
as made before the sale, and the certification described in §
615 8 (c)(2 ) shall be treated as m ade before the clo se o f the
calendar year follow in g the calendar year in which the last
such sale occurred, if application for such certification w as
made before the clo se o f D ecem ber 31, 1976. S ig n a l’s appli
cation for such certifications w as received by the Board on
October 25, 1976.
2This inform ation derives from S ig n a l’s correspondence with
the Board concerning its request for certification as w ell as
other records o f the Board.
L aw D epartm ent
erty acquired by it on or before July 7, 1970, the
disposition of which would have been necessary
or appropriate to effectuate § 4 of the BHC Act
if Signal had retained ownership or control of more
than 25 per cent of the outstanding voting shares
of Bank after the effective date of the 1970
Amendments to the BHC Act and if Signal were
thereafter to continue to be a bank holding com
pany beyond December 31, 1980, which property
would have been “ prohibited property” within the
meaning of sections 6158(f)(1) and 1103(c) of the
Code.3
6. Neither Signal nor any subsidiary of Signal
holds any interest in Bank, Arizona, or any sub
sidiary of Arizona, or in any other bank or any
company that controls a bank.
7. Neither Arizona nor any subsidiary of Ari
zona, including Bank, holds any interest in Signal
or any subsidiary of Signal.
8. No officer, director (including honorary or
advisory director) or employee with policy-making
functions of Signal or any subsidiary of Signal also
holds any such position with Arizona or any sub
sidiary of Arizona, including Bank, or with any
other bank or any company that controls a bank.
9. Signal does not control in any manner
the election of a majority of directors, or exercise
a controlling influence over the management or
policies, of Arizona or any subsidiary of Arizona,
including Bank, or of any other bank or company
that controls a bank. On the basis of the foregoing
information, it is hereby certified that:
(A) at the time of the sale by Equities of the
462,636 shares of Bank to Arizona, Signal was
a qualified bank holding corporation, within the
meaning of subsection (b) of section 1103 of the
Code,4 and satisfied the requirements of that sub
3 Had Signal in fact retained control o f Bank after D ecem ber
31, 1970, it w ould have been a “ com pany covered in 1 9 7 0 ,”
as defined in § 2(b) o f the B H C A ct. A s such it w ould have
been entitled, by reason o f the proviso o f § 4(a)(2) o f the
BHC A ct, to engage thereafter in any activities in w hich it
had been engaged on June 3 0 , 1968, and w as engaged contin
uously thereafter. A ccordin gly, property relating to such activ
ities w ould not have been “ prohibited property,” within the
meaning o f §§ 6 1 5 8 (f)(1 ) and 1103(c) o f the C ode, unless
an election to have all such property so treated was made
pursuant to § 1103(g) o f the C ode, H ow ever, since Signal
ceased to control Bank before D ecem ber 3 1 , 1970, it never
becam e entitled to the benefits o f the proviso o f § 4(a)(2) of
the B H C A ct.
4 A lthough the B H C A ct had not been am ended to cover
one-bank holding com panies as o f Septem ber 2 9 , 1970, H .R .
677 8 , which was eventually enacted on D ecem ber 31, 1970,
as the “ Bank H olding Com pany A ct A m endm ents o f 1 9 7 0 ,”
had by that date been passed by both the H ouse and Senate.
605
section, and Equities was a subsidiary of Signal
within the m eaning of §§ 6158(f)(1) and
1103(a)(1)(B) of the Code and § 2(d) of the BHC
Act;
(B) the shares of Bank that Equities sold to
Arizona were all or part of the property by reason
of which Signal controlled (within the meaning
of § 2(a) of the BHC Act) a bank or bank holding
company;
(C) the sale of the shares of Bank was necessary
or appropriate to effectuate the policies of the BHC
Act; and
(D) Signal has (before the expiration of the
period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
ceased to be a bank holding company.
This certification is based upon the repre
sentations made to the Board by Signal and upon
the facts set forth above. In the event the Board
should hereafter determine that facts material to
this certification are otherwise than as represented
by Signal, or that Signal has failed to disclose to
the Board other material facts, it may revoke this
certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(3)), effective May
25, 1977.
(Signed)
[s e a l ]
Ruth
A.
R e is t e r ,
A ssistan t Secretary of the Board.
304 Corporation,
Omaha, Nebraska
Prior Certification Pursuant to the
Bank H olding Com pany Tax A c t of 1976
[Docket No. TCR 76-140]
304 Corporation, Omaha, Nebraska (“ 304” ),
has requested a prior certification pursuant to §
6158(a) of the Internal Revenue Code (the
“ Code” ), as amended by § 3(a) of the Bank
Holding Company Tax Act of 1976 (the “ Tax
Act” ), that its sale of all of the 1,050 issued and
outstanding shares of common stock of Industrial
Loan and Investment Company, Omaha, Nebraska
(“ Industrial” ), now held by 304 to Industrial
Sign al’s managem ent stated at the tim e o f the divestiture of
its interest in Bank that the divestiture w as being accom plished
in anticipation of the enactm ent o f that legislation. Section
2(d)(1)(a) of the Tax A ct and § 6158(a) of the C ode provide
that tax relief under the Tax A ct is available with respect to
the divesture o f bank property after July 7, 1970.
606
Federal Reserve Bulletin □ June 1977
Investment Company, Omaha, Nebraska, is nec
essary or appropriate to effectuate § 4 of the Bank
Holding Company Act (12 U.S.C. § 1843) (“ BHC
Act” ).
In connection with this request, the following
information is deemed relevant for the purposes
of issuing the requested certification:1
1. 304 is a corporation organized under the laws
of the State of Nebraska on February 18, 1970.
2. Industrial is an industrial loan and invest
ment corporation organized under the laws of the
State of Nebraska on August 18, 1938, and en
gaged in the business of an industrial bank. On
February 14, 1967, Industrial acquired direct
ownership and control of 81.4 per cent of the
outstanding voting shares of Mid City Bank, Inc.,
Omaha, Nebraska (“ Bank” ). On March 13, 1970,
304 acquired direct ownership and control of 1010
shares, representing all of the outstanding voting
shares, of Industrial, and thereby acquired indirect
ownership and control on that date of 81.4 per
cent of the outstanding voting shares of Bank.
3. 304 became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
indirect ownership and control at that time,
through Industrial, of more than 25 per cent of
the outstanding voting shares of Bank, and it
registered as such with the Board on June 28,
1971.2 304 would have been a bank holding com
pany on July 7, 1970, if the BHC Act Amend
ments of 1970 had been in effect on such date,
by virtue of its indirect ownership and control,
through Industrial, of more than 25 per cent of
the outstanding voting shares of Bank. 304 pres
ently indirectly owns and controls 8,866 shares,
representing 88.6 per cent of the outstanding vot
ing shares, of Bank.
4. 304 has not filed an application with the
Board, or otherwise obtained the Board’s approval
pursuant to § 4(c)(8) of the BHC Act, to retain
the shares of Industrial or engage in the activities
carried on by Industrial.3
*This inform ation derives from 3 0 4 ’s correspondence with
the Board concerning its request for this certification, 3 0 4 ’s
Registration Statement filed with the Board pursuant to the
BHC A ct and other records o f the Board.
2 Industrial registered w ith the Board as a bank holding
com pany on the sam e date.
3 T he operation o f an industrial bank is a perm issible activity
for a bank holding com pany. S ee 12 CFR § 2 2 5 .4 (a )(2 ).
H ow ever, in the absence o f approval by the Board o f an
application by 304 to retain Industrial, 30 4 w ould have no
authority for retaining Industrial beyond D ecem ber 3 1, 1980.
(C f. W ach ovia C o rp ., D ocket N o . TCR 7 6 -1 3 2 , 4 2 Fed.
R egister 2 4 3 1 6 (M ay 13, 1977)).
5.
304 has contracted to sell the shares of
Industrial to Industrial Investment Company for
cash. Prior to the sale of its shares of Industrial,
304 will purchase from Industrial all of the shares
of Bank held by Industrial.
On the basis of the foregoing information, it
is hereby certified that:
(A) 304 is a qualified bank holding corporation
within the meaning of § 6158(f)(1) and subsection
(b) of section 1103 of the Code, and satisfies the
requirements of that subsection;
(B) Industrial is “ prohibited property” within
the meaning of §§ 6158(f)(2) and 1103(c) of the
Code; and
(C) the sale of Industrial is necessary or appro
priate to effectuate § 4 of the BHC Act.
This certification is based upon the repre
sentation made to the Board by 304 and upon the
facts set forth above. In the event the Board should
hereafter determine that facts material to this cer
tification are otherwise than represented by 304
or that 304 has failed to disclose to the Board other
material facts, it may revoke this certification.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(3)), effective May
20, 1977.
(Signed)
[s e a l ]
Theodore
E.
A l l is o n ,
S ecretary of the Board.
The Wachovia Corporation,
Winston-Salem, North Carolina
P rior Certification Pursuant to the
Bank H olding Com pany Tax A c t of 1976
[Docket No. TCR 76-132]
The Wachovia Corporation, Winston-Salem,
North Carolina (“ Wachovia” ), has requested a
prior certification pursuant to § 6158(a) of the
Internal Revenue Code (the “ Code” ), as amended
by § 3(a) of the Bank Holding Company Tax Act
of 1976 (the “ Tax Act” ), that its proposed sale
of all the 20,000 issued and outstanding shares
of common stock of Financial Courier Corporation
(formerly Wachovia Courier Corporation), Win
ston-Salem, North Carolina (“ Courier” ), now
held by Wachovia is necessary or appropriate to
effectuate § 4 of the Bank Holding Company Act
(12 U.S.C. § 1843 et seq.) (“ BHC Act” ). Wa
chovia has agreed to sell the shares of Courier
to Pony Express Courier Corp., Atlanta, Georgia
L aw D epartm ent
(“ Pony Express” ) for $2,250,000 cash payable
on the closing date.
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification:1
1. Wachovia is a corporation organized under
the laws of the State of North Carolina in Sep
tember 1968 to acquire and hold all the shares
of Wachovia Bank and Trust Company, N.A.
(“ Bank” ).
2. On December 31, 1968, Wachovia acquired
ownership and control of all of the outstanding
voting shares (less directors’ qualifying shares) of
Bank.
3. Wachovia became a bank holding company
on December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
ownership and control at that time of more than
25 per cent of the outstanding voting shares of
Bank, and it registered as such with the Board
on January 20, 1972. Wachovia would have been
a bank holding company on July 7, 1970, if the
BHC Act Amendments of 1970 had been in effect
on such date, by virtue of its ownership and control
on that date of more than 25 per cent of the voting
shares of Bank. Wachovia presently owns and
controls 100 per cent (less directors’ qualifying
shares) of the outstanding voting shares of Bank.
4. Courier was organized in May 1969 as a
wholly-owned subsidiary of Wachovia to engage
in the business of providing courier service for
transporting financial documents and data process
ing material. Such services are currently per
formed by it for Bank, its correspondent banks,
customers of Bank’s data processing subsidiary
and the Federal Reserve Bank of Richmond. Wa
chovia presently owns and controls the 20,000
issued and outstanding shares of common stock
of Courier, all of which it acquired before July
7, 1970.
5. Wachovia has not filed an application with
the Board, or otherwise obtained the Board’s ap
proval, pursuant to § 4(c)(8) of the BHC Act to
retain the shares of Courier or engage in the
activities carried on by Courier.2
1This inform ation derives from W achovia’s correspondence
with the Board concerning its request for this certification,
W achovia’s Registration Statement filed with the Board pur
suant to the B H C A ct and other records o f the Board.
2 A lthough W achovia has not sought Board approval to retain
Courier, som e or all o f C ourier’s activities may be among those
activities that the Board has p rev io u sly determ in ed to be c lo sely
related to banking, under § 4 (c)(8 ). See 12 CFR §§
2 2 5 .4 ( a ) ( ll) and 2 2 5 .1 2 9 ; N a tio n a l C o u rier A sso c ia tio n v.
607
6.
Wachovia has contracted to sell the shares
of Courier to Pony Express for cash.
On the basis of the foregoing information it is
hereby certified that:
(A) Wachovia is a qualified bank holding cor
poration, within the meaning of § 6158(f)(1) and
subsection (b) of section 1103 of the Code, and
satisfies the requirements of that subsection;
(B) Courier is “ prohibited property” within the
meaning of §§ 6158(f)(2) and 1103(c) of the Code;
and
(C) the sale of Courier is necessary or appro
priate to effectuate § 4 of the BHC Act.
This certification is based upon the repre
sentations made to the Board by Wachovia and
upon the facts set forth above. In the event the
Board should hereafter determine the facts material
to this certification are otherwise than as repre
sented by Wachovia, or that Wachovia has failed
to disclose to the Board other material facts, it
may revoke this certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(3)), effective May
9, 1977.
(Signed)
[s e a l ]
T heodore
E.
A l l is o n ,
Secretary of the Board.
B o a rd o f G o vern ors o f the F ederal R ese rv e S ystem , 5 1 6 F .2d
1229 (D .C . Cir. 1975). Under the B oard’s present procedures,
h ow ever, the question whether, or to what extent, W achovia
w ould be permitted to retain these activities w ould not be
determinable unless and until W achovia filed an application
for perm ission to retain the activities. In passing upon such
an application the Board w ould be required to apply the second
test set forth in § 4 (c )(8 ) and to determ ine whether the per
form ance o f these activities by a subsidiary o f W achovia “ can
reasonably be expected to produce benefits to the public, such
as greater con ven ien ce, increased com petition, or gains in
efficiency, that outw eigh possible adverse effects, such as
undue concentration o f resources, decreased or unfair com p e
tition, conflicts of interest, or unsound banking p ractices.” In
the absence o f favorable action on such an application W acho
via w ould have no authority for retaining Courier beyond
D ecem ber 31, 1980, if it continued to be a bank holding
company beyond that date. The legislative history o f the Tax
Act does not indicate a C ongressional intent that com panies
subject to such a divestiture requirement exhaust the p o ssi
bilities for retaining the activity before being eligib le for tax
relief, and in v iew o f the paramount purpose o f § 4 of the
BHC A ct, that “ banking and com m erce should remain sepa
rate,” S. Rep. N o. 1084, 91st C on g., 2d S ess. 12 (1970),
it w ould appear that the disposition of a potentially perm issible
activity, w ithout first seeking approval for retention, is at least
“ appropriate” to effectuate § 4.
608
Federal Reserve Bulletin □ June 1977
1. Clinton is a corporation organized under the
laws of the State of Indiana on January 25, 1965.
2. On February 16, 1968, Clinton acquired
ownership and control of 5,376 shares, repre
senting 53.76 per cent of the outstanding voting
shares of Bank.
3. Clinton became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
ownership and control at that time of more than
25 per cent of the outstanding voting shares of
Bank, and it registered as such with the Board
on July 8, 1971. Clinton would have been a bank
holding company on July 7, 1970, if the BHC
Act Amendments of 1970 had been in effect on
such date, by virtue of its ownership and control
on such date of more than 25 per cent of the
outstanding voting shares of Bank. Clinton pres
ently owns and controls 10,002 shares, repre
senting 50.01 per cent of the outstanding voting
shares, of Bank.
4. More than 85 per centum of the voting stock
of Clinton was collectively owned on June 30,
1968, and has been so owned continuously there
after, directly or indirectly, by members of the
same family, or their spouses, who are lineal
descendants of common ancestors. Accordingly,
Clinton has been exempt from the prohibitions of
§ 4 of the BHC Act by virtue of clause (ii) of
§ 4(c) of the BHC Act.
5.
Clinton holds property acquired by it on or
before July 7, 1970, the disposition of which
would, but for the proviso of § 4(a)(2) and clause
(ii) of § 4(c) of the BHC Act, be necessary or
appropriate to effectuate § 4 of the BHC Act if
Clinton were to remain a bank holding company
beyond December 31, 1980, and which property
would, but such proviso and such clause, be
“ prohibited property” within the meaning of §
1103(c) of the Code. Sections 1103(g) and 1103(h)
of the Code provide that any bank holding com
pany may elect, for purposes of Part VIII of
subchapter 0 of chapter 1 of the Code, to have
the determination whether property is ‘‘prohibited
property” or is property eligible to be distributed
without recognition of gain under § 1101(b)(1) of
the Code, made under the BHC Act as if such
Act did not contain, respectively, the proviso of
§ 4(a)(2) thereof and clause (ii) of § 4(c) thereof.
Clinton has represented that it will make such an
election.2
On the basis of the foregoing information, it
is hereby certified that:
(A) Clinton is a qualified bank holding corpora
tion, within the meaning of subsection (b) of
section 1103 of the Code, and satisfies the re
quirements of that subsection;
(B) the shares of Bank that Clinton proposes
to distribute to its shareholders are all or part of
the property by reason of which Clinton controls
(within the meaning of § 2(a) of the BHC Act)
a bank or bank holding company; and
(C) the distribution of such shares is necessary
or appropriate to effectuate the policies of the BHC
Act.
This certification is based upon the repre
sentations made to the Board by Clinton and upon
the facts set forth above, and is conditioned upon
Clinton’s making the elections required by §§
1103(g) and 1103(h) of the Code at such time and
in such manner as the Secretary of the Treasury
or his delegate may by regulation prescribe. In
the event that the Board should hereafter determine
1This inform ation derives from C linton’s correspondence
with the Board concerning its request for this certification,
C linton’s registration statement filed with the Board pursuant
to the BHC A ct, and other records o f the Board.
2 Sections 1 103(g) and (h) require that an election thereunder
be made “ at such tim e and in such manner as the Secretary
[of the Treasury] or his delegate may by regulations prescribe. ’ ’
A s o f this date no such regulations have been promulgated.
Clinton Cable TV Co., Inc.,
Clinton, Indiana
P rior Certification Pursuant to the
Bank H olding Com pany Tax A c t of 1976
[Docket No. TCR 76-131]
Clinton Cable TV Co., Inc., Clinton, Indiana
(“ Clinton” ), has requested a prior certification
pursuant to § 1101(b) of the Internal Revenue
Code (the “ Code” ), as amended by § 2(a) of the
Bank Holding Company Tax Act of 1976 (the
“ Tax Act” ), that its proposed divestiture of all
of the 10,002 shares of Dulaney National Bank
of Marshall, Marshall, Illinois (“ Bank” ), pres
ently held by Clinton, through the pro rata distri
bution of such shares to the common shareholders
of Clinton, is necessary or appropriate to effectuate
the policies of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) (“ BHC Act” ).
In connection with this request, the following
information is deemed relevant, for purposes of
issuing the requested certification:1
L aw D epartm ent
that facts material to this certification are otherwise
than as represented by Clinton, or that Clinton has
failed to disclose to the Board other material facts,
it may revoke this certification.
By order of the Board of Governors, acting
609
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(3)), effective May
31, 1977.
(Signed) R u t h A. R e i s t e r ,
[s e a l ]
A ssistan t S ecretary of the B oard.
ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT
B y
t h
e
B
o
a r
d
o
f
G
o
v
e r
n
o
r
s
During May 1977, 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
Alabama Bancorporation,
Birmingham, Alabama
Peoples Banking Cor
poration, Bay City,
Michigan
Washington Bancorpora
tion, Washington, Iowa
Bank(s)
The Farmers & Merchants
Bank, Ashford,
Alabama
The First National
Bank of Lapeer,
Lapeer, Michigan
The National Bank of
Washington, Wash
ington, Iowa
B oard action
(effective
date)
Federal
R eg ister
citation
5/11/77
42 F.R. 25373
5/17/77
5/2/77
42 F.R. 23546
5/9/77
5/11/77
42 F.R. 25378
5/17/77
B oard action
(effective
date)
Federal
R egister
citation
5/2/77
42 F.R. 23547
5/9/77
Section 4
A pplican t
SEAFIRST CORPORATION,
Seattle, Washington
Nonbanking company
(or activity)
Seafirst Life Insur
ance Company,
Phoenix, Arizona
610
Federal Reserve Bulletin □ June 1977
Sections 3 and 4
A pplican t
McCune Banc
shares, Inc.,
McCune,
Kansas
Nonbanking
com pany
(or activity)
Bank(s)
McCune State
Bank, McCune,
Kansas
Sale of
insurance
related
to exten
sions of
credit
R eserve
Bank
Effective
date
Kansas City
5/5/77
Federal
R egister
citation
42 F.R. 23878
5/11/77
B y F ederal R eserve B anks
During May 1977, 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
Banks.
Section 3
A pplican t
Pacesetter Financial
Corporation, Grand
Haven, Michigan
Bank(s)
First Security
Bank of Grand
Blanc, Grand
Blanc, Michigan
R eserve
Bank
Effective
date
Chicago
5/17/77
Federal
R egister
citation
42 F.R. 27294
5/27/77
PENDING CASES INVOLVING THE BOARD OF GOVERNORS*
B ankAm erica Corporation v. B oard of G over
nors, filed May 1977, U.S.D.C. for the Northern
Farmers State Bank of C rosby v. B oard of
G overnors, filed January 1977, U.S.C.A. for the
District of California.
Eighth Circuit.
B ankAm erica C orporation v. B oard of G over
nors, filed May 1977, U.S.C.A. for the Ninth
Circuit.
First Security Corporation v. B oard of G over
nors, filed March 1977, U.S.C.A. for the Tenth
Circuit.
*T his list o f pending cases does not include suits against
the Federal R eserve Banks in w hich the Board o f G overnors
is not nam ed a party.
N ational A utom obile D ealers Association, Inc.
v. B oard of G overnors, filed November 1976,
U.S.C.A. for the District of Columbia.
First Security C orporation v. B oard of G over
nors, filed August 1976, U.S.C.A. for the Tenth
Circuit.
First State Bank of Clute, Texas, e t a l . \ . B oard
of G overnors, filed July 1976, U.S.C.A. for the
Fifth Circuit.
L aw D epartm ent
Central W isconsin Bankshares, Inc. v. B oard
of G overnors, filed June 1976, U.S.C.A. for the
Seventh Circuit.
N ational Urban L eague, et al. v. Oj^ice 0/ the
C om ptroller of the Currency, et al., filed April
1976, U.S.D.C. for the District of Columbia Cir
cuit.
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 Cir
cuit.
G randview Bank & Trust Com pany v. B oard
of G overnors, filed March 1976, U.S.C. A. for the
Eighth Circuit.
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.
First L incolnw ood Corporation v. B oard of
G overnors, filed February 1976, U.S.C.A. for the
Seventh Circuit.
R oberts Farms, Inc. v. Com ptroller of the Cur
rency, et a l., filed November 1975, U.S.D.C. for
the Southern District of California.
Florida A ssociation of Insurance A gents, Inc.
v. B oard of G overnors, and N ational A ssociation
611
of Insurance A gents, Inc. v. B o a rd o f G overnors,
filed August 1975, actions consolidated in
U.S.C.A. for the Fifth Circuit.
t tD a v id R . M errill, e ta l.v . Federal Open M arket
Com mittee o f the Federal R eserve System , filed
May 1975, U.S.D.C. for the District of Columbia,
appeal pending, U.S.D.A. for the District of Co
lumbia.
L ouis J. R oussel v. B o a rd o f G overnors, filed
April 1975, U.S.D.C. for the Eastern District of
Louisiana.
G eorgia A ssociation of Insurance A gents, et al.
v. B oard of G overnors, filed October 1974,
U.S.C.A. for the Fifth Circuit.
A labam a A ssociation of Insurance A gents, et
al. v. B oard o f G overnors, filed July 1974,
U.S.C.A. for the Fifth Circuit,
t Consumers Union o f the U nited States, Inc.,
et al. v. B oard of G overnors, filed September
1973, U.S.D.C. for the District of Columbia.
Bankers Trust N ew York C orporation v. B oard
of G overnors, filed May 1973, U.S.C.A. for the
Second Circuit.
fD e c isio n s have been handed dow n in these cases, subject
to appeals noted.
$The Board of G overnors is not nam ed as a party in this
action.
613
Announcements
R E G U L A T IO N B :
N e w P ro v isio n
The Board of Governors of the Federal Reserve
System has noted that a provision of Regulation
B (Equal Credit Opportunity) regarding the credit
histories of married persons became effective June
1, 1977.
In general, the regulation gives married persons
the right to have credit information about them
reported in the names of both the wife and the
husband if both use or are responsible for the
account. This is meant to assure that individual
credit histories will be available for all married
persons. Previously, most credit accounts have
been kept only in the name of the husband and
thus only the husband developed a credit history.
Under the regulation most open-end credit bill
ing statements (such as credit-card billings) mailed
during June, July, August, and September will
contain a notice called “ Credit History for Married
Persons.” Married consumers who wish to have
individual credit histories must sign and mail the
notice back once to each creditor who sends such
a notice. Either spouse’s signature on the form
is sufficient.
R E G U L A T IO N C :
D e sig n a tio n o f N e w S M S A ’s
The Board of Governors noted on June 14, 1977,
that five new standard metropolitan statistical areas
(SMSA’s) have been designated and that this af
fects banks and thrift institutions subject to the
Home Mortgage Disclosure Act in those areas.
The new SMSA’s are as follows: Bradenton,
Florida —Manatee County; G rand Forks , N orth
D akota-M innesota —Grand Forks County, North
Dakota, and Polk County, Minnesota; Kokom o,
In d ia n a — Howard and Tipton
C ounties;
L aw rence , K ansas —Douglas County; Panama
C ity , F lo r id a ^ Bay County.
The Home Mortgage Disclosure Act and the
related Federal Reserve Regulation C went into
effect June 28, 1976. They require depositary
institutions with assets of more than $10 million
and an office in an SMSA to disclose publicly the
geographic areas where they are making residential
mortgage and home improvement loans. Thus,
with the creation of five new SMSA’s, additional
depositary institutions have become subject to the
act and Regulation C. The Office of Management
and Budget designates SMSA’s.
Any institution that has become subject to the
disclosure requirements of the act and regulation
by virtue of these SMSA additions should prepare
a disclosure statement within 90 days (by Sep
tember 12, 1977). However, institutions in the
affected areas that were subject to the Home
Mortgage Disclosure requirements prior to the
designation of the new SMSA’s need not modify
their disclosures to take account of the additions
until the beginning of their next fiscal year. For
further information regarding its disclosure re
sponsibilities, a depositary institution should con
tact its Federal supervisory authority.
F O R E IG N B A N K L E G IS L A T IO N
The Board of Governors has informed congres
sional leaders concerned with bank regulation that
it strongly supports the International Banking Act
of 1977 that has been introduced in the House of
Representatives.
The Board said such legislation is needed be
cause of the recent rapid growth of foreign bank
operations in this country, the increasingly impor
tant share of the domestic market that is controlled
by foreign banks, and the lack of any national
regulation and supervision of these operations.
In a letter to the congressional leaders, the
Board said “ we are primarily concerned about the
absence of a national policy and regulatory frame
work in this increasingly important area and its
attendant ramifications for the formulation of
monetary policy, the development of a sound and
competitive banking system, and the coordination
of policies with national monetary and regulatory
authorities abroad.” The letter was accompanied
by proposals for a number of amendments.
614
Federal Reserve Bulletin □ June 1977
Since 1974 the Board has backed foreign bank
legislation aimed at national treatment of foreign
banks operating here, that is, to place foreign
banks under the same type of Federal banking and
monetary regulation that affects comparable do
mestic banks.
A N N U A L R E P O R T : P u b lic a tio n
The Sixty-Third Annual R eport of the Board of
Governors of the Federal Reserve System, cover
ing operations for the calendar year 1976, 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.
Note that on page 498 of the Annual R ep o rt ,
listing the Members of the Board, the State repre
sented by Vice Chairman Gardner should be
Pennsylvania (not Massachusetts) and the State
represented by Governor Partee should be Virginia
(not Ohio).
D O M E S T IC F IN A N C E C O M P A N IE S :
M a jo r A sse ts a n d L ia b ilitie s
A new table providing annual and quarterly data on
the major assets and liabilities of domestic finance
companies appears on page A39 of this issue of the
B ulletin . Annual data are presented for 1972
through 1974; quarterly data cover the third quarter
1975 to the first quarter 1977. Quarterly data back to
June 1970 will be shown in the Board’s forthcoming
Annual Statistical D igest , 1972-1976.
Another new table on the same page provides
monthly business credit component data for the
most recent 3 months available. Historical data for
these series back to June 1970 may be obtained from
the Capital Markets Section, Division of Research
and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
N E W E Q U A L C R E D IT
O P P O R T U N IT Y P A M P H L E T
The Board of Governors has issued a new con
sumer pamphlet entitled The Equal C redit O ppor
tunity A c t and . . . D o cto rs , L aw yers , Small
R etailers , and Others Who M a y P rovide Inciden
tal Credit. The pamphlet defines a creditor and
incidental credit under the Equal Credit Opportu
nity Act. A professional or small businessman may
be subject to the rules covering incidental credit
that are described in this pamphlet.
Copies of the new pamphlet may be obtained
from any Federal Reserve Bank or from the 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 S T A F F
The Board of Governors has announced the retire
ment, effective June 1, 1977, of James B. Eckert,
Senior Research Division officer in the Division
of Research and Statistics, and also the resignation
of Peter E. Barna, Assistant Director in the Divi
sion of Banking Supervision and Regulation, ef
fective June 3, 1977.
S Y S T E M M E M B E R S H IP :
A d m issio n o f S ta te B a n k s
The following State banks were admitted to mem
bership in the Federal Reserve System during the
period May 16 through June 15, 1977:
Alabam a
Alabama............................... Citizens Bank and
Trust Company
Colorado
Colorado City ............Greenhorn Valley Bank
Oklahoma
Bixby ................................. The Bank of Bixby
Vermont
Stowe ..................... Mountain Trust Company
615
Industrial Production
R eleased fo r publication June 15
Industrial production in May increased by an esti
mated 1.1 per cent, following gains of 0.8 per
cent and 1.5 per cent in April and March, respec
tively. Increases in output in May were widespread
among products and materials, but auto production
edged off for the second successive month. At a
level of 137.8 per cent of the 1967 average,
industrial production in May was 3.5 per cent
above the level in February and 6.3 per cent higher
than a year earlier.
Output of both durable and nondurable con
sumer goods increased further in May. Auto as
semblies—at a 9.2-million-unit annual rate—
declined 1.4 per cent from the April index level,
but production of other consumer durable goods,
particularly home goods, increased sharply. Pro
duction of business equipment increased by 1.8
per cent, following a gain of 1.6 per cent now
indicated for April; output of business equipment
in May was 4.3 per cent above that in February
and almost 11 per cent higher than a year earlier.
Output of construction supplies also continued to
advance strongly last month.
Production of materials increased 1.2 per cent
in May. Output of durable goods materials rose
sharply, particularly iron and steel. Production of
nondurable goods materials increased moderately.
Seasonally adjusted, ratio scale, 1967=100
F.R . indexes, seasonally adjusted. Latest figures: M ay.
*Auto sales and stocks include imports.
Seasonally adjusted, 1967 = 100
Per cent changes from—
Industrial production
1977
Feb.
Mar.
Apr. p
M ay*
M onth ago
......................................................................................
1 3 3 .2
1 35.2
1 3 6 .3
1 3 7 .8
1.1
6 .3
1 .3
Products, total ..............................................................................
Final products ..........................................................................
C onsum er g oods ................................................................
Durable g oods ..............................................................
Nondurable goods ............................... ...................
B usiness equipm ent ........................................................
Intermediate products ..........................................................
Construction supplies ......................................................
Materials .........................................................................................
1 33.9
131.8
1 41.0
146.1
13 8 .9
143.1
141.8
135.7
132.4
135.1
133.3
143.0
152.3
139.1
144.4
141.9
136.4
135.4
135.9
134.0
143.0
152.4
139.5
146.7
143.0
137.8
136.8
137.2
135.2
143.6
152.8
140.0
149.3
144.8
139.6
138.5
1.0
.9
.4
.3
.4
1.8
1.3
1.3
1.2
6 .4
6 .2
4 .5
6 .7
3 .6
10.9
7 .3
6 .6
6 .0
1.7
1.7
1.5
2.1
1.2
2 .4
2 .0
.7
.8
T o ta l
^Preliminary.
Estimated.
Year ago Q 4 to Q l
A 1
Financial and Business Statistics
CONTENTS
DOMESTIC FINANCIAL STATISTICS
W eekly R eporting Commercial B anks
A3
A4
A5
Assets and Liabilities of—
A20
All reporting banks
A21
Banks in New York City
A22
Banks outside New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A6
Monetary aggregates and interest rates
Factors affecting member bank reserves
Reserves and borrowings of member
banks
Federal funds transactions of money
market banks
A25 Gross demand deposits of individuals,
partnerships, and corporations
Policy I nstruments
A8 Federal Reserve Bank interest rates
A9 Member bank reserve requirements
A 10 Maximum interest rates payable on
time and savings deposits at Federally
insured institutions
A 10 Margin requirements
A ll Federal Reserve open market
transactions
Federal R eserve B anks
A12 Condition and F.R. note statements
A13 Maturity distribution of loan and
security holdings
M onetary
and
Credit A ggregates
A13 Demand deposit accounts—Debits and
rate of turnover
A 14 Money stock measures and components
A15 Aggregate reserves and deposits of
member banks
A15 Loans and investments of all
commercial banks
Commercial B ank A ssets
and
L iabilities
A 16 Last-Wednesday-of-month series
A 17 Call-date series
A18 Detailed balance sheet, Dec. 31, 1976
F inancial M arkets
A25 Commercial paper and bankers
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Interest rates charged by banks on
business loans
A27 Interest rates in money and capital
markets
A28 Stock market—Selected statistics
A29 Savings institutions—Selected assets
and liabilities
Federal F inance
A30 Federal fiscal and financing operations
A31 U.S. Budget receipts and outlays
A32 Federal debt subject to statutory
limitation
A32 Gross public debt of U.S. Treasury—
Types and ownership
A33 U.S. Government marketable
securities—Ownership, by maturity
A34 U.S. Government securities dealers—
Transactions, positions, and financing
A35 Federal and Federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin □ June 1977
Securities M arkets
Corporate F inance
and
A36 New security issues—State and local
government and corporate
A37 Corporate securities—Net change in
amounts outstanding
A37 Open-end investment companies—Net
sales and asset position
A38 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A39 Domestic finance companies—Assets
and liabilities; business credit
Real E state
A40 Mortgage markets
A41 Mortgage debt outstanding
Consumer Instalment Credit
A42 Total outstanding and net change
A43 Extensions and liquidations
F low
of
F unds
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to
credit markets
DOMESTIC NONFINANCIAL STATISTICS
A46 Nonfinancial business activity—
Selected measures
A46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production
A50 Housing and construction
A51 Consumer and wholesale prices
A52 Gross national product and income
A53 Personal income and saving
INTERNATIONAL STATISTICS
A54 U.S. international transactions—
Summary
A55 U.S. foreign trade
A55 U.S. reserve assets
A56 Selected U.S. liabilities to foreigners
and to foreign official institutions
Reported
A57
A59
A60
A61
by
B anks
Short-term
Long-term
Short-term
Long-term
in the
U nited S tates:
liabilities to foreigners
liabilities to foreigners
claims on foreigners
claims on foreigners
A62 Foreign branches of U.S. banks—
Balance sheet data
Securities H oldings
and
Transactions
A64 Marketable U.S. Treasury bonds and
notes—Foreign holdings and
transactions
A64 Foreign official accounts
A65 Foreign transactions in securities
Reported by N onbanking Concerns
the U nited S tates:
in
A66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners
Interest
and
E xchange R ates
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69 GUIDE TO TABULAR
PRESENTATION AND
STATISTICAL RELEASES
A70 Commercial bank assets and liabilities:
Detailed balance sheet, Sept. 30,
1976
Domestic Financial Statistics
A3
1.10 M O N ETAR Y AG G R EG A TES A N D IN TER ES T RATES
1977
1976
1977
Item
Q2
Q4
Q3
Ql
Jan.
Feb.
Mar.
Apr.
May
Monetary and credit aggregates
(annual rates o f change, seasonally adjusted in per cent)12
1
2
3
Member bank reserves
T otal...............................................................................
Required........................................................................
Nonborrowed...............................................................
0 .6
1.1
0 .4
2 .7
2.4
2 .6
4 .4
4 .0
4 .8
2 .7
3.0
2 .6
10.9
11.3
10.4
- 1 3 .1
-1 0 .9
-1 3 .3
-3 .1
-3 .7
-4 .3
13.0
13.9
14.1
4
5
6
Concepts of money 1
M - l.................................................................................
M -2.................................................................................
M -3.................................................................................
8 .2
10.5
11.8
4 .4
9.1
11.4
6.8
12.2
14.2
4 .8
9 .4
11.0
5.8
9.3
11.2
0.8
6.6
8.7
6.1
8.2
9 .2
19.7
13.0
12.3
7
8
9
Time and savings deposits
Commercial banks:
T otal...........................................................................
Other than large CD’s ............................................
Thrift institutions 2 .....................................................
5.4
12.4
13.8
7 .0
12.8
14.8
11.5
16.3
17.3
11.3
12.7
13.4
9.8
11.8
14.0
9.7
10.6
11.7
5.8
9 .7
r10.9
6 .0
8.5
10.5
10 Total loans and investments at commercial banks 3
*•10.3
r7.0
r10.7
'8 .8
*•3.7
14.7
'10.0
14.0
Interest rates (levels, per cent per annum)
11
12
13
14
Short-term rates
Federal funds 4 .........................................................................
Treasury bills (3-month market yield) 5.............................
Commercial paper (90- to 119-day) 6 ..................................
Federal Reserve discount ?....................................................
5.19
5.16
5.45
5.50
5.28
5.15
5.41
5.50
4.88
4.67
4.91
5.39
4.66
4.63
4.74
5.25
4.61
4.62
4.72
5.25
4.68
4.67
4.76
5.25
4.69
4.60
4.75
5.25
4.73
4.54
4.75
5.25
5.35
4.96
5.26
15
16
17
Long-term rates
Bonds:
U.S. Govt. 8 ...........................................................................
Aaa utility (new issue) 9 .....................................................
State and local government 10..........................................
8.01
8.69
6.78
7.90
8.48
6.64
7.54
8.15
6.18
7.62
8.17
5.88
7.48
8.08
5.87
7.64
8.22
5.89
7.74
8.25
5.89
7.67
8.26
5.73
7.74
8.33
5.75
18
Conventional mortgages 11...................................................
8.98
9.03
8.95
8.82
8.80
8.80
8.85
8.90
1 M -l equals currency plus private demand deposits adjusted.
M-2 equals M -l plus bank time and savings deposits other than large
negotiable CD’s.
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
2 Savings and loan associations, mutual savings banks, and credit
unions.
3 Quarterly changes calculated from figures shown in Table 1.23.
4 Seven-day averages o f daily effective rates (average of the rates on
a given date weighted by the volume o f transactions at those rates).
5 Quoted on a bank-discount rate basis.
6 Most representative offering rate quoted by five dealers.
7 Rate for the Federal Reserve Bank o f New York.
8 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
9 Weighted averages o f new publicly offered bonds rated Aaa, Aa, and
A by Moody’s Investors Service and adjusted to an Aaa basis. Federal
Reserve compilations.
10 Bond Buyer series for 20 issues o f mixed quality.
11 Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept, o f Housing and Urban Development.
12 Unless otherwise noted, rates o f change are calculated from average
amounts outstanding in preceding month or quarter.
A4
Domestic Financial Statistics □ June 1977
1.11 FACTORS A FFE C TIN G MEMBER BA N K RESERVES
M
illions of dollars
Monthly averages o f daily
figures
Weekly averages o f daily figures for weeks ending—
1977
1977
Factors
Mar.
Apr.
Mayp
Apr. 13
Apr. 20
Apr. 27
May 4
May 11
May 18p May 25p
108,085
108,558
112,765
105,822
108,999
111,292
115,390
114,342
113,055
111,762
95,310
94,313
95,316
94,534
99,023
97,000
92,673
92,311
95,740
95,290
97,850
96,123
100,544
97,391
99,956
97,310
99,334
97,263
98,491
96,707
997
6,782
6,750
782
6,813
6,766
2,023
7,259
7,077
362
6,752
6,731
450
6,748
6,731
1,727
6,846
6,731
3,153
7,288
7,077
2,646
7,240
7,077
2,071
7,357
7,077
1,784
7,275
7,077
SUPPLYING RESERVE FU N D S
1 Reserve Bank credit outstanding.. .
2
3
4
U.S. Govt, securities1.....................
Bought outright.........................
Held under repurchase agree
ment .........................................
Federal agency securities.............
Bought outright......................... .
Held under repurchase agree
ment .........................................
5
6
7
32
47
182
21
17
115
211
163
280
198
8
9
10
11
Acceptances....................................
Loans...............................................
Float.................................................
Other Federal Reserve assets
289
110
2,833
2,761
284
73
2,992
3,080
489
200
2,844
2,950
165
38
3,261
2,933
164
29
3,221
3,097
419
99
2,904
3,174
878
215
3,205
3,260
646
156
3,130
3,214
520
126
2,711
3,007
409
311
2,719
2,556
12
13
Gold stock..........................................
Special Drawing Rights certificate
account................. .......................
Treasury currency outstanding.
11,646
11,636
11,632
11,636
11,636
11,636
11,636
11,636
11,633
11,629
1,200
10,966
1,200
11,010
1,200
11,058
1,200
11,008
1,200
11,014
1,200
11,029
1,200
11,013
1,200
11,048
1,200
11,055
1,200
11,069
92,831
494
94,295
452
94,969
443
94,753
450
94,657
448
94,108
447
94,233
442
94,929
442
95,152
440
94,888
438
8,577
271
669
7,369
294
633
10,997
322
559
5,279
309
650
6,231
313
622
9,606
272
634
13,462
296
592
13,273
359
532
10,862
365
525
10,505
263
548
14
ABSORBING RESERVE FUNDS
15
16
Currency in circulation.....................
Treasury cash holdings.....................
Deposits, other than member bank
reserves with F.R. Banks:
17
Treasury..........................................
18
Foreign.............................................
19
Other2..............................................
20
21
Other F.R. liabilities and capital. . .
Member bank reserves with F.R.
Banks...............................................
3,206
3,266
3,324
3,113
3,295
3,343
3,427
3,165
3,281
3,375
25,849
26,096
26,041
25,112
27,284
26,746
26,786
25,527
26,318
25,643
End-of-month figures
1977
SUPPLYING RESERVE FU N D S
Wednesday figures
1977
Mar.
Apr.
Mayp
Apr. 13
Apr. 20
Apr. 27
May 4
May 11
May 18^ May 25p
22
Reserve Bank credit outstanding. . .
109,648
114,406
110,817
107,915
113,087
114,925
118,793
115,404
112,126
109,302
23
24
25
U.S. Govt, securities1.....................
Bought outright........................
Held under repurchase agree
ment ................. : .....................
Federal agency securities...............
Bought outright.........................
Held under repurchase agree
ment .........................................
95,987
95,547
99,967
97,993
97,394
96,560
94,329
91,794
98,440
95,292
100,240
97,045
102,853
96,763
100,878
97,506
98,162
97,043
95.906
95.906
440
6,785
6,731
1,974
7,201
7,077
834
7,087
7,077
2,535
6,880
6,731
3,148
6,849
6,731
3,195
6,900
6,731
6,090
7,504
7,077
3,372
7,160
7,077
1,119
7,353
7,077
7.077
7.077
54
124
10
149
118
169
427
83
276
29
30
31
32
Acceptances....................................
L oans...............................................
Float.................................................
Other Federal Reserve assets. . .
280
271
3,286
2,859
881
379
2,735
3,243
108
398
2,974
2,856
320
42
3,204
3,140
361
59
4,165
3,213
591
487
3,486
3,221
1,017
122
4,095
3,202
672
381
3,035
3,278
358
211
3,288
2,754
60
449
3,122
2,688
33
34
Gold stock................................
Special Drawing Rights certificate
account......................................
Treasury currency outstanding.
11,636
11,636
11,629
11,636
11,636
11,636
11,636
11,636
11,629
11,629
1,200
11,017
1,200
11,029
1,200
11,037
1,200
11,050
1,200
11,058
1,200
11,073
26
27
28
35
1,200
10,939
1,200
10,984
1,200
11,073
1,200
11,012
93,383
451
93,960
439
95,637
450
95,119
452
94,548
443
94,345
444
94,765
443
95,417
441
95,223
440
95,242
433
7,150
349
637
13,628
305
591
5,838
436
831
4,790
252
631
11,301
280
740
11,323
266
662
13,699
259
544
12,193
234
424
10,848
279
536
9,044
274
713
ABSORBING RESERVE FU N D S
36
37
38
39
40
41
42
Currency in circulation.........
Treasury cash holdings..........
Deposits, other than member bank
reserves with F.R. Banks:
Treasury................... ................
Foreign......................................
Other2........................................
Other F.R. liabilities and capital. .
Member bank reserves with F.R.
Banks....................................
3,457
3,528
3,539
3,153
3,283
3,410
3,121
3,219
3,296
3,425
27,814
25,773
27,988
27,367
26,345
28,339
29,835
27,362
25,392
24,073
1 Includes securities loaned—fully guaranteed by U.S. Govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and sched
uled to be bought back under matched sale-purchase transactions.
2 Includes certain deposits o f foreign-owned banking institutions
voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
N o t e . — For amounts o f currency and coin held as reserves, see Table
1.12.
Member Banks
AS
.12 RESERVES A N D BORROWINGS Member Banks
M
illions of dollars
Monthly averages o f daily figures
R
eserve classification
17
95
17
97
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May2
*
27,215
7,773
34,989
34,727
262
25,708
8,113
33,979
33,692
287
26,127
8,025
34,305
34,116
189
26,458
8,180
34,797
34,433
364
26,430
8,548
35,136
34,964
172
27,229
8,913
36,290
35,796
494
25,725
8,326
34,199
34,234
-3 5
25,849
8,134
34,135
33,870
265
26,096
8,368
34,613
34,602
26,041
8,616
34,807
34,472
335
127
13
75
31
66
84
32
21
61
79
110
13
73
14
200
8
9
10
11
Large banks in New York City
Reserves held............................
Required...............................
Excess....................................
Borrowings2.............................
6,812
6,748
64
63
6,372
6,308
64
6,374
6,346
28
6,589
6,485
104
36
6,520
6,602
-8 2
15
7,076
6,948
128
6,442
6,537
-9 5
47
6,331
6,259
72
44
6,264
6,351
-8 7
16
6,233
6,279
-4 6
18
12
13
14
15
Large banks in Chicago
Reserves held...............
Required...................
Excess.......................
Borrowings 2.................
1,740
1,758
-1 8
1,615
1,617
1,648
1,635
13
3
1,621
1,602
19
1,632
1,641
-9
4
1,731
1,698
33
1.624
1.624
1,610
1,611
1,629
1,634
-5
1,621
1,641
16
17
18
19
Other large banks
Reserves held. ..
Required........
Excess.............
Borrowings2. . . .
13,249
13,160
89
26
12,584
12,521
63
3
12,704
12,706
13,117
13,053
64
14
13,556
13,427
129
25
12,683
12,765
-8 2
4
12,779
12,705
74
29
13,090
13,110
12,973
12,994
17
12,889
12,802
87
7
23
64
20
21
22
23
All other banks
Reserves held.
R equired...
Excess.........
Borrowings2..
13,188
13,061
127
38
13,408
13,246
162
47
13,579
13,429
150
46
13,698
13,544
154
41
13,867
13,668
199
29
13,927
13,723
204
28
13,450
13,308
142
28
13,415
13,295
13,630
13,507
123
34
All member banks
Reserves:
At F.R. Banks.....................
Currency and co in .............
Total heldi ............................
Required...........................
Excess1..............................
Borrowings at F.R. Banks:2
T otal......................................
Seasonal................................
22
-2
3
-2
62
12
6
12
-1
2
1
1
3
120
34
30
-20
4
-20
-21
13,708
13,558
150
114
Weekly averages o f daily figures for weeks ending1977
Mar. 23
A11 member banks
Reserves:
At F.R. Banks.....................
Currency and co in .............
Total held1...........................
Required...........................
Excess1..............................
Borrowings at F.R. Banks:2
Total......................................
Seasonal................................
31
32
33
34
Large banks in New York City
Reserves held............................
Required...............................
Excess....................................
Borrowings2.............................
35
36
37
38
Large banks in Chicago
Reserves held...............
Required...................
Excess.......................
Borrowings2.................
39
40
41
42
Other large banks
Reserves held. ..
Required........
Excess.............
Borrowings2. . . .
43
44
45
46
All other banks
Reserves held.
Required...
Excess.........
Borrowings2..
Mar. 30
April 6
April 13
Apr. 20
Apr. 27
May 4
May 11
26,282
7,492
33,921
33,844
77
26,296
8,290
34,737
34,404
333
25,654
8,477
34,264
34,008
256
25,112
8,721
33,988
33,714
274
27,284
7,724
35,162
35,128
34
26,746
8,341
35,240
35,076
164
26,786
8,892
35,831
35,529
302
25,527
8,998
34,678
34,632
338
13
58
14
65
14
38
12
29
14
99
15
215
19
6,213
6,233
6,485
6,401
84
6,3 4 4
6,282
6,237
6,176
61
6,567
6,597
-3 0
6,259
6,290
-3 1
34
1,629
1,621
-20
167
61
29
1,659
1,635
24
14
1,621
1,594
27
12,701
12,659
42
117
13,022
12,950
72
12,802
12,799
3
13,447
13,381
13,571
13,418
153
33
1,560
1,571
-11
66
54
1
1
1
1
13,498
13,333
165
34
i Adjusted to include waivers o f penalties for reserve deficiencies in
accordance with Board policy, effective Nov. 19, 1975, o f 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
1,616
1,594
22
12,814
12,788
26
1
1
13,321
13,156
165
27
1,669
1,695
-2 6
8
1
13,304
13,316
13,407
13,339
May 18p May 25 p
26,318
8,554
35,023
34,750
273
25,643
8,164
33,956
33,799
157
156
2
1
126
28
311
34
6,516
6,467
49
54
6,299
6,307
6,372
6,433
-6 1
5,922
6,034
1,732
1,699
33
7,595
1,625
-3 0
7,709
1,720
-11
1,543
1,569
-2 6
46
-8
25
-112
27
18
13,526
13,470
56
4
68
27
88
13,093
13,140
-4 7
51
12,957
13,107
-1 5 0
33
12,772
12,673
99
115
13,622
13,520
13,945
13,826
119
37
14,057
13,893
164
73
13,691
13,560
131
80
13,661
13,490
171
75
13,610
13,523
87
169
-12
102
25
nonmember bank joins the Federal Reserve System. For weeks for which
figures are preliminary, figures by class o f bank do not add to total
because adjusted data by class are not available.
2 Based on closing figures.
A6
Domestic Financial Statistics □ June 1977
1.13 FED ER AL FUN D S TRANSACTIO NS of Money Market Banks
M
illions of dollars, except a noted
s
1 77, w ending W
9
eek
ednesday—
Type
Mar. 30
April 6
April 13
April 20
April 27
May 4
May 11
May 18
May 25
Total, 46 banks
1
Basic reserve position
Excess reserves1............................
126
187
112
-1 3
3
142
-2 0
64
14
29
11
4
49
107
31
18
62
14,363
17,149
21,273
18,670
14,593
15,076
18,142
16,727
14,942
-1 4 ,2 5 1
-1 6 ,9 9 0
-2 1 ,1 7 2
-1 8 ,6 8 8
-1 4 ,6 3 9
-1 5 ,0 4 2
-1 8 ,1 9 3
-1 6 ,6 8 1
-1 4 ,9 4 9
95.7
116.0
144.9
121.2
97.3
98.1
121.7
110.1
104.5
22,819
8,457
5,338
24,728
7,580
5,268
27,297
6,024
5,074
26,572
7,902
5,282
23,441
8,848
5,463
24,040
8,963
5,589
25,762
7,620
5,026
24,063
7,336
5,227
22,870
7,929
5,619
17,481
3,118
19,460
2,311
22,223
951
21,290
2,260
17,978
3,384
18,450
3,374
20,736
2,594
18,836
2,110
17,251
2,309
2,469
1,895
574
4,226
1,512
2,714
5,497
1,273
4,224
3,632
1,248
2,384
2,468
1,552
915
2,899
2,029
870
2,914
2,091
822
2,857
2,327
530
2,930
2,770
160
30
-2 3
L ess:
2
3
4
5
Borrowings at F.R. Banks. . .
Net interbank Federal funds
transactions.......................
E q u a l s : Net surplus, or
deficit ( —):
Amount......................................
Per cent o f average required
reserves...............................
Interbank Federal funds transactions
Gross transactions:
Purchases.......................................
Sales.................................................
Two-way transactions2...................
N et transactions:
Purchases o f net buying banks..
Sales o f net selling banks............
11
12
13
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
N et loans.................................
54
8 banks in New York City
14
Basic reserve position
Excess reserves1............................
51
L ess:
15
16
17
18
Borrowings at F.R. B a n k s...
Net interbank Federal funds
transactions.......................
E q u a l s : Net surplus, or
deficit ( —):
Amount......................................
Per cent o f average required
reserves..............................
Interbank Federal funds transactions
Gross transactions:
P u r c h a se s...............................................
Sales.................................................
Two-way transactions2...................
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks...........
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
Net loans.................................
101
62
15
-2 0
29
5
34
29
54
25
21
4,984
5,724
7,508
7,135
5,464
5,815
7,329
5,656
5,088
-4 ,9 3 3
-5 ,6 5 2
-7 ,4 4 5
-7 ,1 1 9
-5 ,5 1 8
-5 ,8 4 0
- 7 ,3 4 9
-5 ,6 2 7
-5 ,1 3 3
84.6
98.9
132.2
118.4
96 .6
99.2
128.2
96.0
93.9
6,172
1,188
1,187
6,515
791
790
8,156
648
648
8,028
893
893
6,663
1.199
1.199
6,951
1,136
1,135
8,249
920
920
7,083
1.427
1.427
6,659
1,572
1,571
4,984
5,724
7,507
7,134
5,464
5,815
7,329
5,656
5,088
1,353
804
549
1,964
611
1,353
2,482
364
2,118
2,240
386
1,854
1,427
491
936
1,535
631
904
1,569
849
721
1,533
1,019
514
1,590
1,097
494
78
38 banks outside New York City
27
Basic reserve position
Excess reserves1............................
L ess:
28
29
30
31
Borrowings at F.R. Banks. . .
Net interbank Federal funds
transactions.......................
E q u a l s : Net surplus, or
deficit ( —):
Amount......................................
Per cent o f average required
reserves..............................
Interbank Federal funds transactions
Gross transactions:
Purchases.......................................
Sales.................................................
Two-way transactions2...................
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks...........
37
38
39
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3..............................
Borrowing from dealers4................
Net loans............................................
For notes s eend of table.
e
75
50
-2 9
22
113
-2 4
34
11
86
14
4
14
54
6
18
41
9,379
11,425
13,766
11,536
9,129
9,261
10,813
11,070
9,854
-9 ,3 1 8
-1 1 ,3 3 9
-1 3 ,7 2 7
-1 1 ,5 6 8
-9 ,1 2 2
-9 ,2 0 2
-1 0 ,8 4 3
-1 1 ,0 5 4
-9 ,8 1 7
102.8
126.8
152.8
122.9
97 .7
97.3
117.7
119.1
111.0
16,648
7,269
4,151
18,214
6,789
4,478
19,141
5,376
4,425
18,544
7,009
4,389
16,779
7,649
4,265
17,089
7,828
4,454
17,513
6,700
4,106
16,979
5,909
3,800
16,211
6,357
4,048
12,497
3,118
13,736
2,311
14,716
951
14,156
2,620
12,514
3,384
12,635
3,374
13,407
2,594
13,180
2,110
12,163
2,309
1,117
1,091
25
2,263
901
1,361
3,015
909
2,106
1,392
862
530
1,041
1,062
-2 1
1,364
1,398
-3 4
1,345
1,243
102
1,324
1,308
16
1,340
1,674
-3 3 4
Federal Funds
A7
1.13 Continued
1 77, w ending W
9
eek
ednesday-
Type
Mar. 30
April 6
April 13
April 20
April 27
May 4
May 11
May 18
May 25
5 banks in City o f Chicago
Basic reserve position
Excess reserves1............................
38
-12
18
5,364
5,410
5,883
5,908
5,227
-6 ,4 1 8
-5 ,3 6 8
-5 ,3 7 2
-5 ,8 9 6
-5 ,9 0 7
-5,223
404.0
354.1
337.8
388.4
369.0
356.4
7,528
865
7,206
812
812
6,491
1.127
1.127
6,600
1,190
1,178
6,780
897
897
6,904
996
996
6,246
1,018
1,018
6,197
6,662
6,394
5,364
5,421
5,883
5,908
5,228
816
189
627
611
392
421
444
-2 3
171
541
-3 7 0
365
543
-1 7 8
295
512
-2 1 7
229
561
-333
244
600
-356
26
75
-12
6
16
54
39
40
-2 4
5,617
6,197
6,662
6,394
deficit ( —):
Amount..........................................
Per cent o f average required
reserves...................................
-5 ,6 1 5
-6 ,1 5 9
-6 ,6 2 2
367.4
414.0
445.1
6,575
958
958
7,155
958
958
48
49
Interbank Federal funds transactions
Gross transactions:
Purchases........................................
Sales.................................................
Two-way transactions2 ...................
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks...........
5,617
50
51
52
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
Net loans..................................
226
481
-255
40
L e ss :
41
42
Borrowings at F.R. B a n k s...
Net interbank Federal funds
transactions.......................
17
14
18
E q u a ls : N et surplus, or
43
44
45
46
47
866
220
12
33 other banks
53
Basic reserve position
Excess reserves1............................
58
10
1
1
48
L e ss :
54
55
Borrowings at F.R. Banks. . .
N et interbank Federal funds
transactions.......................
-4
74
4
14
3,762
5,227
7,103
5,142
3,766
3,852
4,930
5,163
4,627
-3 ,7 0 4
- 5 ,1 8 0
-7 ,1 0 5
-5 ,1 5 0
-3 ,7 5 4
-3 ,8 3 0
-4,9 4 8
-5,174
-4 ,5 9 4
49.1
69 .5
94.8
65.8
48.0
48 .7
64.3
67.0
62 .2
10,073
6,311
3,193
11,058
5,831
3,520
11,614
4,510
3,560
11,338
6,196
3,576
10,288
6,522
3,137
10,489
6,638
3,276
10,733
5,803
3,209
10,075
4,913
2,803
9,965
5,339
3,030
6,880
3,118
7,539
2,311
8,054
951
7,762
2,620
7,150
3,384
7,214
3,362
7,523
2,594
7,272
2,110
6,936
2,309
891
611
280
1,447
713
734
2,403
517
971
418
554
870
520
350
999
855
144
1,050
731
319
1,095
746
349
1,096
1,073
41
E q u a ls : N et surplus, or
56
57
deficit ( —):
Amount....................................
Per cent o f average required
reserves............................
61
62
Interbank Federal funds transactions
Gross transactions:
Purchases.........................................
Sales..................................................
Two-way transactions2 ................... .
Net transactions:
Purchases o f net buying banks. .,
Sales o f net selling banks...........
63
64
65
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
Net loans..................... ............
58
59
60
1,886
1 Based on reserve balances, including adjustments to include waivers
o f penalties for reserve deficiencies in accordance with changes in Board
policy 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 average purchases
and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases from dealers subject to resale),
or other lending arrangements.
22
4 Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales o f securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by U.S. Govt, or other securities.
N o t e . —Weekly averages o f daily figures. For description o f series,
see Federal Reserve B u l l e t i n for August 1964, pp. 944-53. Back data for
46 banks appear in the Board’s Annual Statistical Digest, 1971-1975,
Table 3.
A8
Domestic Financial Statistics □ June 1977
1.14 FEDER AL RESERVE BANK INTEREST RATES
Per cent per annum
Current and previous levels
Loans to member banks—
Loans to all others
under Sec. 13, last par . 4
Under Sec. 10 (b)2
Under Secs. 13 and 13a1
Federal Reserve
Bank
Regular rate
Rate on
5/31/77
Effective
date
Previous
rate
5%
11/22/76
11 /22/76
11/22/76
11/22/76
11/22/76
\ \ 122/16
\ l 122/16
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76
5%
5%
5%
B oston..................
New Y ork...........
Philadelphia........
Cleveland.............
Richmond...........
Atlanta.................
C hicago...............
St. Louis..............
Minneapolis........
Kansas City.........
D allas...................
San Francisco. ..
5V 4
5%
5%
5V
4
5Va
5 /4
1
5%
5V
4
5V4
5 /4
1
5Y4
5%
5%
5%
5%
5V4
5^
5%
5%
5%
Rate on
5/31/77
Effective
date
5%
534
534
534
534
534
Special rate 3
U/22/16
11/22/76
11/22/76
\\/22/16
\\/22/16
\\/22/16
U/22/16
11/26/76
11/22/76
11/22/76
11/22/76
U/22/16
5V4
SV4
5V 4
534
534
534
Rate on
5/31/77
Effective
date
Previous
rate
Rate on
5/31/77
Effective
date
Previous
rate
6V
4
6V
4
6V
4
6V
4
6V
4
6V
4
6V
4
Previous
rate
11/22/76
U/22/16
11/22/76
U/22/16
11/22/76
11/22/76
U/22/16
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76
6V
i
61/2
6i/i
6i/i
6i/i
81/4
8%
8%
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76
8i/i
8i/i
8i/i
8i/i
8i/i
61/4
6%
6%
6%
6%
81/4
81/4
6 i/i
6 i/i
6%
6 i/i
61/2
8%
81/4
8%
81/4
81/4
81/4
6V4
61/2
814
8V
i
8%
8i/i
8i/i
81/i
8i/i
8i/i
Range o f rates in recent years5
Effective date
In effect Dec. 31, 1970........
1971—Jan.
Feb.
July
Nov.
Dec.
8 .....................
15.....................
19.....................
22.....................
29.....................
13.....................
19.....................
16.....................
2 3.....................
11.....................
19.....................
13.....................
17.....................
24.....................
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
5V4
51/i
5i/4-5i/i
51/4
5 -5%
5 -514
5
43,4-5
43,4
43/4-5
5
43/4-5
43/4
4%-4%
4%-4%
4^
51/4
51/4
5%
5
5
5
43/4
5
5
5
43/4
43/4
4Vi
4i/i
1973—Jan. 15...................
Feb. 26...................
Mar. 2...................
Apr. 23...................
May 4 ...................
11...................
18...................
June 11...................
15...................
July 2 ...................
Aug. 14...................
23...................
1974— Apr. 25...................
30...................
Dec. 9 ...................
16...................
1 Discounts o f eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase.
2 Advances secured to the satisfaction o f the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the Section 13 rate.
3 Applicable to special advances described in Section 201.2(e)(2) of
Regulation A.
Range
(or level)—
All F.R.
Banks
Effective date
5
5-5Vi
5V
i
5i/i-53/4
53/4
53/4-6
6
6-6i/i
6i/i
7
7-7i/i
7V
i
7Vi-8
8
734-8
734
F.R.
Bank
of
N .Y.
5
51/i
5i/i
51/2
5*/4
6
6
6i/i
61/2
Effective date
1975—Jan.
6 ...............
10..........
24...............
Feb. 5 ...............
7 ...............
Mar. 10...............
14...............
May 16...............
23...............
7
71/i
7i/i
8
8
7 /4
3
73/i
1976—Jan.
19...............
23...............
Nov. 22...............
26...............
In effect May 31, 1977.
Range
(or level)—
All F.R.
Banks
71/4-73,4
71/4- 73/4
71/4
63,4-71/4
6 ,4
3
61/4-63,4
64
V
6-6V
4
6
5Vi-6
5i/i
51/4-5V
i
5 /4
1
5V
4
F.R.
Bank
of
N.Y.
7 /4
3
71*
m
v/4
6 /4
3
6V
4
6 /4
1
6
6
5V
i
5i/i
5 /4
1
5%
5V
4
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.
5 Rates under Secs. 13 and 13a (as described above). For description
and earlier data, see the following publications o f the Board o f Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Statistics, 1941-1970, and Annual Statistical Digest, 1971-75.
Policy Instruments
A9
1.15 MEMBER BA N K RESERVE R EQ UIREM EN TS1
Per cent of deposits
Requirements in effect
May 31, 1977
Type o f deposit, and deposit interval
in millions o f dollars
Previous requirements
Per cent
Effective date
Per cent
Effective date
7
9%
ny4
12%
16V4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
m
10
12
13
16%
2/13/75
2/13/75
ii m i5
2/13/75
2/13/75
3
3/16/67
m
3/2/67
3
4 2}4
41
3/16/67
1/8/76
10/30/75
3 Vi
3
3
6
*2%
41
12/12/74
1/8/76
10/30/75
5
3
3
Net demand:2
2 -1 0 ..........................................................................................................
10-100......................................................................................................
100-400...................................................................................................
Over 4 0 0 ............................................... ..................................................
Time:2,3
Savings.....................................................................................................
Other tim e:
0-5, maturing in—
30-179 days....................................................................................
180 days to 4 years.......................................................................
4 years or m ore.............................................................................
Over 5, maturing in—
30-179 days....................................................................................
180 days to 4 years......................................................................
4 years or m ore.............................................................................
3/2/67
3/16/67
3/16/67
10/1/70
12/12/74
12/12/74
Legal limits, May 31, 1977
Minimum
Net demand:
Reserve city banks
Other banks..........
Time...........................
1 For changes in reserve requirements beginning 1963, see Board’s
Annual Statistical Digest, 1971-1975 and for prior changes, see Board’s
Annual Report for 1976, Table 13.
2 (a) Requirement schedules are graduated, and each deposit interval
applies to that part o f the deposits o f each bank. Demand deposits
subject to reserve requirements are gross demand deposits minus cash
items in process o f collection and demand balances due from domestic
banks.
(b) The Federal Reserve Act specifies different ranges o f requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits o f more than $400 million is considered to have the
character o f business o f a reserve city bank. The presence o f the head
office o f such a bank constitutes designation o f that place as a reserve
city. Cities in which there are F.R. Banks or branches are also reserve
cities. Any banks having net demand deposits o f $400 million or less
are considered to have the character o f business o f banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board’s Regulation D.
Maximum.
10
7
3
22
14
10
(c)
Member banks are required under the Board’s Regulation M to
maintain reserves against foreign branch deposits computed on the basis
o f net balances due from domestic offices to their foreign branches and
against foreign branch loans to U.S. residents. Loans aggregating $100,000
or less to any U.S. resident are excluded from computations, as are total
loans o f a bank to U.S. residents if not exceeding $1 million. Regulation D
imposes a similar reserve requirement on borrowings from foreign banks
by domestic offices o f a member bank. A reserve o f 4 per cent is required
for each o f these classifications.
3 Negotiable orders o f withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements as savings deposits.
4 The average o f reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law.
N o t e . —Required reserves must be held in the form o f deposits with
F.R. Banks or vault cash.
A 10
Domestic Financial Statistics □ June 1977
1.16 M AX IM UM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Per cent per annum
Commercial banks
In effect May 31, 1977
Type and maturity o f deposit
Per cent
1 Savings.............................................................
2 Negotiable order o f withdrawal (NOW)
accounts1............................................
Time (multiple- and single-maturity
unless otherwise indicated):2
30-89 days:
3
Multiple-maturity.................................
4
Single-maturity...................................... }
Previous maximum
Effective
date
5
Per cent
7/1/73
5
Savings and loan associations and
mutual savings banks
Effective
date
Single-maturity...................................... }
7
8
9
7/1/73
*
1/21/70
4Vi
/
I
7/1/73
5'A
{
‘
6Vi
7/1/73
7/1/73
10
11
4 to 6 years4...............................................
6 years or more4........................................
71/4
m
11/1/73
12/23/74
71/4
12
Governmental units (all maturities).. . .
12/23/74
m
J
I
A R G I N
R E Q U I R E M
5 Vi
5Va
5V4
( 8)
1 For authorized States only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks were first permitted to offer NOW accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institu
tions throughout New England on Feb. 27, 1976.
2 For exceptions with respect to certain foreign time deposits see the
Federal Reserve B u l l e t i n for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
3 A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum de
nominations. This restriction was removed for deposits maturing in less
than 1 year, effective Nov. 1, 1973.
4 $1,000 minimum except for deposits representing funds contributed
to an individual retirement account (IRA) or a Keogh (H.R. 10) plan es
tablished pursuant to the Internal Revenue code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and N o
vember 1976, respectively.
5 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
6 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan associations.
7 N o separate account category.
M
5%
Per cent
5
<5>
1/1/74
Effective
date
( 6)
1/21/70
9/26/66
4 Vi
5
5
Previous maximum
Effective
date
5
1 to 2 years3 ...............................................
2 to 2 Vi years3........................................... }
2 Vi to 4 years3...........................................
1 .1 6 1
Per cent
1/1/74
90 days to 1 year:
6
In effect May 31, 1977
}
7/20/66
9/26/66
} 3 5%
( 5)
1/21/70
1/21/70
1/21/70
}
6 Vi
6V
4
( 5)
( 5)
11/1/73
m
7%
11/1/73
12/23/74
( 8)
m
11/1/73
\ \ 127114
1V4
12/23/74
m
U 121114
( 7)
5%
/
\
1/21/70
sy4
6
6
1/21/70
1/21/70
1/21/70
8 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
o f $1,000; however, the amount o f such certificates that an institution
could issue was limited to 5 per cent o f its total time and savings deposits.
Sales in excess of that amount, as well as certificates o f less than $1,000,
were limited to the 6Vi per cent ceiling on time deposits maturing in 2 Vi
years or more.
Effective Nov. 1, 1973, the present ceilings were imposed on certificates
maturing in 4 years or more with minimum denominations o f $1,000.
There is no limitation on the amount o f these certificates that banks can
issue.
N o t e —Maximum rates that can be paid by Federally insured commer
cial banks, mutual savings banks, and savings and loan associations are
established by the Board of Governors o f the Federal Reserve System,
the Board o f Directors o f the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board under the provisions o f 12
CFR 217, 329, and 526, respectively. The maximum rates on time de
posits in denominations o f $100,000 or more were suspended in mid1973. For information regarding previous interest rate ceilings on all
types o f accounts, see earlier issues o f the Federal Reserve B u l l e t i n ,
the Federal Home Loan Bank Board Journal, and the Annual Report
o f the Federal Deposit Insurance Corporation.
E N T S
Per cent o f market value; effective dates shown.
Type o f security on sale
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
1 Margin stocks............................................................
2 Convertible bonds. .j................................................
3 Short sales...................................................................
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
N o t e . —Regulations G, T, and U o f the Federal Reserve Board of
Governors, prescribed in accordance with the Securities Exchange Act o f
1934, limit the amount o f credit to purchase and carry margin stocks
that may be extended on securities as collateral by prescribing a maximum
loan value, which is a specified percentage o f the market value o f the
collateral at the time the credit is extended. Margin requirements are the
difference between the market value (100 per cent) and the maximum
loan value. The term “margin stocks” is defined in the corresponding
regulation.
Regulation G and special margin requirements for bonds convertible
into stocks were adopted by the Board o f Governors effective Mar. 11,
1968.
Policy Instruments
Al 1
1.17 FEDER AL RESERVE OPEN M A R K ET TRANSACTIONS
M
illions of dollars
17
96
Type of transaction
17
94
17
95
17
96
Oct.
Nov.
17
97
Dec.
Jan.
2,535
313
801
45
107
41
20
252
63
-2 6 6
374
Feb.
Mar.
Apr.
U.S. GOVT. SECURITIES
Outright transactions (excl. matched salepurchase transactions)
Treasury bills:
Gross purchases.
Gross sales...........
Redemptions
11,660
5,830
4,550
11,562
5,599
26,431
14,343
8,462
2 5,017
Others within 1 year : 1
Gross purchases.....................
Gross sales...............................
Exchange, or maturity shift.
Redemptions...........................
1
2
3
450
3,886
472
-1,183
131
-4
3,549
618
'2 6 6 '
346
480
600
975
1,546
18
59
792
66
1,047
-66
430
1 to 5 years:
Gross purchases......................
Gross sales...............................
Exchange, or maturity sh ift.,
797
2 3,284
-697
3,854
2 3,202
177
-2 ,5 8 8
1
1
12
434
1,510
1,048
62
13
5 to 10 years:
Gross purchases......................
Gross sales...............................
Exchange, or maturity shift.
1,675
- 4 ,6 9 7
1,572
-1,167
14
15
16
Over 10 years:
Gross purchases......................
Gross sales...........................
Exchange, or maturity shift.
196
1,070
642
73
205
848
225
-310
17
18
19
All maturities: 1
Gross purchases.
Gross sales...........
Redemptions
13,537
5,830
4,682
221,313
5,599
2 9,980
19,707
8,639
25,017
612
480
600
2,004
1,546
3,229
313
’ 266
9
10
113
618
110
368
1,671
260
19
170
475
348
174
327
-252
681
-8 8 0
266
-3 7 4
151
46
104
37
38
797
801
298
368
2,160
260
19
128
517
119
48
81
300
20
21
Matched sale-purchase transactions
Gross sales....................................
Gross purchases..........................
64,229
62,801
151,205 196,078
152,132 196,579
23,289
24,501
22,675
21,525
23,193
24,343
24,595
22,544
22,674
23,447
30,115
30,828
32,287
32,852
22
23
Repurchase agreements
Gross purchases. . .
Gross sales.............
71,333
70,947
140,311 232,891
139,538 230,355
16,603
18,821
17,612
20,173
30,872
27,119
23,820
27,573
13,853
12,921
14,368
14,860
13,397
11,862
-5 8 8
-4 ,1 7 9
5,361
-2,887
1,702
151
3,980
24
36
24
Net change in U.S. Govt, securities.. . .
1,984
7,434
9,087
3,087
1,616
891
115
322
246
169
14
63
23,204
22,735
15,179
15,566
10,520
10,360
705
949
897
976
1,380
930
1,208
689
612
523
546
709
639
511
420
163
-3 5
-5 4 5
410
-9
-492
-9
-1 4 0
795
8
-5
-7 9 5
-1 8
149
-1 9
-2 3
-5 1
653
6,149
8,539
9,833
-1,332
-4,3 0 7
6,379
- 3 ,9 6 9
1,886
50
4,998
FEDERAL AGENCY OBLIGATIONS
25
26
27
28
29
Outright transactions:
Gross purchases...........
Gross sales.....................
Redemptions.................
Repurchase agreements:
Gross purchases...........
Gross sales.....................
346
1,102
BANKERS ACCEPTANCES
30
31
32
Outright transactions, n et. ..
Repurchase agreements, n et.
Net change in total System Account.
1 Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions o f dollars): 1973, 1,187; 1974, 131; and 1975, 3,549.
2 In 1975, the System obtained $421 million o f 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction
amounting to $189 million. Acquisition o f these notes is treated as a
purchase; the run-off o f bills, as a redemption.
N o t e . — Sales, redemptions, and negative figures reduce holdings of
the System Open Market Account; all other figures increase such holdings.
Details may not add to totals because o f rounding.
A12
1 .1 8
Domestic Financial Statistics □ June 1977
F E D
E R
A L
R E S E R V E
B A N K S
C o n d itio n
a n d
F .R . N o te
S ta te m e n ts
Millions o f dollars
Wednesday
1977
Account
Apr. 27
May 4
End o f Month
1977
May 11
May 18p
May 25p
Mar.
Apr.
May*7
Consolidated condition statement
ASSETS
1 Gold certificate account..................................
2 Special Drawing Rights certificate account.
3
4
5
6
7
8
9
C oin1...................................................................
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:
10
Bills.....................................................
11
Certificates—Special.......................
12
Other.........................
13
N otes................................................ .
14
Bonds................................................
15
Total 2....................................................
16
Held under repurchase agreements.
11,636
11,636
11,636
11,629
11,629
11,636
11,636
11,629
327
324
322
329
324
360
340
319
487
122
381
211
449
271
379
398
107
484
93
924
75
597
68
60
290
154
126
103
778
58
50
6,731
169
7,077
427
7,077
83
7,077
276
7,077
6,731
54
7,077
124
7,077
40,640
40,177
39,040
39,170
41,127
39,694
48,732
8,134
97,043
1,119
48,732
8,134
95,906
49,181
7,196
95,547
440
49,632
7.234
97,993
1,974
48,732
8,134
96,560
834
1,200
1,200
40,179
1,200
1,200
1,200
1,200
1,200
1,200
1
0
49,632
7,234
97,045
3,195
49,632
7,234
96,763
6,090
49,632
7,234
97,506
3,372
17 Total U.S. Govt, securities.
100,240
102,853
100,878
98,162
95,906
95,987
99,967
97,394
18
Total loans and securities..
108,218
111,496
109,091
106,084
103,492
103,323
108,428
104,987
19
20
9,670
366
10,329
367
8,639
367
9,234
368
8,429
369
8,045
372
8.234
366
7,341
369
21
22
Cash items in process o f collection...
Bank premises..........................................
Other assets:
Denominated in foreign currencies.
All other................................................
64
2,791
41
2,794
54
2,857
43
2,343
55
2,264
61
2,426
56
2,821
60
2,427
23
Total assets.
134,272
138,187
134,166
131,230
127,762
127,423
133,081
128,332
LIABILITIES
F.R. notes..............................................
Deposits:
Member bank reserves...................
U.S. Treasury—General account.
Foreign...............................................
Other 3................................................
84,088
84,495
85,130
84,933
84,926
83,257
83,757
85,333
28,339
11,323
266
662
29,835
13,699
259
544
27,362
12,193
234
424
25,392
10,848
279
536
24,073
9,044
274
713
27,814
7,150
349
637
25,773
13,628
305
591
27,988
5,838
436
831
29
Total deposits.
40,590
44,337
40,213
37,055
34,104
35,950
40,297
35,093
30
31
Deferred availability cash items............
Other liabilities and accrued dividends.
6,184
979
6,234
1,062
5,604
1,034
5,946
988
5,307
1,001
4,759
1,016
5,499
1,052
4,367
1,016
32
Total liabilities......................................
131,841
136,128
131,981
128,922
125,338
124,982
130,605
125,809
24
25
26
27
28
CAPITAL ACCOUNTS
33
34
35
Capital paid in.............................................................
Surplus..........................................................................
Other capital accounts..............................................
991
983
457
994
983
82
996
983
206
998
983
327
999
983
442
991
983
467
993
983
500
1,000
36
Total liabilities and capital accounts.......................
134,272
138,187
134,166
131,230
127,762
127,423
133,081
128,332
37
M emo: Marketable U.S. Govt, securities held in
custody for foreign and inti, account...............
57,976
57,929
57,542
58,520
58,301
56,623
60,092
58,214
983
540
Federal Reserve note statement
89,565
89,599
89,655
89,970
90,023
88,664
89,630
90,242
11,631
643
11,631
643
11,632
643
11,625
643
11,625
643
11,633
643
11,631
643
11,625
643
78,933
79,133
79,183
79,183
78,130
78,933
79,283
91,207
91,408
91,451
91,451
90,406
91,207
91,551
39
40
41
42
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........................................
78,833
43
Total collateral.
91,107
38
1 Effective Jan. 1, 1977 Federal Reserve notes o f other Federal Reserve
Banks were merged into the liability account for Federal Reserve notes.
2 Includes securities loaned—fully guaranteed by U.S. Govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
3 Includes certain deposits o f domestic nonmember banks and foreign-
owned banking institutions voluntarily held with member banks and
redeposited in full with F.R. Banks.
N o t e . — Beginning Jan. 1, 1977, “Operating equipment” was transferred
to “Other assets.”
Reserve Banks
1.19 FED ER AL RESERVE BANKS
M
illions of dollars
A13
Maturity Distribution of Loan and Security Holdings
Wednesday
1977
Type and maturity
Apr. 27
May 4
End o f month
1977
May 11
May 18
May 25
Mar. 31
Apr. 30
May 31
1
2
3
A
Within 15 days..........................................................
16 days to 90 days....................................................
486
481
5
123
114
9
374
361
13
211
• 203
8
449
441
8
270
267
3
377
371
6
398
386
12
^
6
7
8
................................................................
Within 15 days..........................................................
16 days to 90 days....................................................
91 days to 1 year
.
. .........................
591
516
56
19
1,017
953
47
17
672
613
50
9
358
308
50
60
6
48
6
280
147
90
43
881
812
51
18
108
59
45
4
9 U.S. Govt, securities.....................................................
Within 15 days1........................................................
10
11
16 days to 90 days....................................................
91 days to 1 year.......................................................
12
Over 1 year to 5 years.............................................
13
14
Over 5 years to 10 years.........................................
is
Over 10 vears............................................................
100,240
8,483
21,096
24,050
31,168
9,991
5,452
102,853
13,240
17,736
25,530
30,904
9,991
5,452
100,878
11,291
17,552
25,688
30,904
9,991
5,452
98,162
5,532
17,689
27,525
29,899
11,165
6,352
95,906
3,870
17,613
27,007
29,899
11,165
6,352
95,987
3,494
20,422
25,928
30,841
9,888
5,414
99,967
6,259
22,770
24,327
31,168
9,991
5,452
97,394
2,629
19,615
27,703
29,930
11,165
6,352
\(\ FpHpral aopnrv nhlipatinns..........................................
Within 15 days1........................................................
17
16 days to 90 days....................................................
18
91 days to 1 year.......................................................
19
Over 1 year to 5 years.............................................
20
21
Over 5 years to 10 years.........................................
22
Over 10 years.............................................................
6,900
214
289
1,092
3,317
1,233
755
7,504
427
319
1,106
3,490
1,372
790
7,160
122
280
1,106
3,490
1,372
790
7,353
383
212
1,140
3,456
1,372
790
7,077
68
212
1,170
3,450
1,372
805
6,785
82
268
1,178
3,291
1,206
760
7,201
170
289
1,091
3,490
1,371
790
7,087
149
277
1,034
3,450
1,387
790
1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity o f the agreements.
1 .2 0
D E M
A N D
D E P O S I T
A C C O U N T S
D e b its
a n d
R a te
o f T u rn o v e r
Monthly data are at seasonally adjusted annual rates.
1976
Standard metropolitan statistical area
1973
1974
1975
Dec.
1977
Jan.
Feb.
Mar.
Apr.
30,499.7
Debits (billions of dollars)2
1 All 233 SMSA’s . . . .......................................................
18,641.3
22,192.2
23,565.1
28,911.0
29,288.1
r30,145.4
r30,421.7
2 New York C ity..............................................................
8,097.7
9,931.8
10,970.9
13,835.0
14,411.8
14,898.0
14,612.1
14,988.9
3 232 SM SA ’s ...................................................................
4
6 leading SMSA’s other than N .Y .C .1...............
5
226 others....................................................................
10,543.6
4,462.8
6,080.8
12,260.6
5 ,152.7
7 ,107.9
12,594.2
4,937.5
7,661.8
15,076.1
5,917.1
9,1 5 9 .0
14,876.3
5,864.3
9,0 1 2 .0
'15,247.4
5,887.1
r9,360.2
r15,809.6
6,155.7
r9,653.9
15,510.8
6,055.5
9,455.3
Turnover o f deposits (annual rate)
6 All 233 SMSA’s ............................................................
110.2
128.0
131.0
153.5
154.3
153.3
'155.2
157.7
7 New York C ity..............................................................
269.8
312.8
351.8
419.8
443.5
437.3
436.0
465.2
8 232 SM SA’s ...................................................................
9
6 leading SMSA’s other than N .Y .C .1...............
10 226 others...................................................................
75.8
115.0
60.6
86.6
131.8
69.3
84.7
118.4
71.6
97.0
136.9
81.7
94.6
133.9
19 A
93.8
129.9
r79.8
r97.3
135.2
r82.5
96.3
134.7
81.4
1 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.
2 Excludes interbank and U.S. Govt, demand deposit accounts.
N o t e . — Total SMSA’s includes some cities and counties not designated
as SMSA’s.
A14
Domestic Financial Statistics □ June 1977
1.21 M ON EY STO CK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures
1976
1973
Dec.
1974
Dec.
1975
Dec.
Item
Oct.
Nov.
1977
Dec.
Jan.
Feb.
Mar.
Apr.
314.3
745.0
1.247.6
808.0
1.310.7
314.5
749.1
1,256.6
812.3
1,319.9
316.1
754.2
1,266.2
816.3
1,328.4
321.3
162 A
1,279.2
824.0
1,340.8
Seasonally adjusted
MEASURES i
1
2
3
4
M - l............................................
M -2...........................................
M -3............................................
M -4..........................................
5 M -5 ..........................................
270.5
571.4
919.6
634.4
982.5
283.1
612.4
981.5
701.4
1,070.5
294.8
664.3
1.092.6
746.5
1.174.7
310.5
725.7
1,210.5
788.0
1,272.8
310.6
731.7
1,222.8
794.0
1,285.0
312.8
739.3
1,236.1
802.6
1,299.3
COMPONENTS
6 Currency.................................
Commercial bank deposits:
7
Demand..............................
8
Time and savings...............
9
Negotiable C D ’s 2.........
10
Other...............................
61.5
67.8
73.7
79.8
80.3
80.6
81.3
82.0
82.4
83.3
209.0
363.9
63.0
300.9
215.3
418.3
89.0
329.3
221.0
451.7
82.1
369.6
230.7
477.5
62.3
415.2
230.3
483.4
62.2
421.2
232.1
489.8
63.3
426.5
233.0
493.8
63.1
430.7
232.5
497.8
63.3
434.5
233.7
500.2
62.2
438.0
238.1
502.7
61.6
441.1
11 Nonbank thrift institutions3
348.1
369.1
428.3
484.8
491.0
496.8
502.6
507.5
512.1
516.8
320.2
749.9
1,250.1
813.0
1,313.2
310.4
745.6
1,251.5
806.9
1,312.7
313.1
754.3
1,267.9
815.1
1,328.7
323.1
767.8
1,288.2
827.9
1,348.3
N ot seasonally adjusted
MEASURES i
12
13
14
15
16
M - l...........................................................
M -2...........................................................
M -3...........................................................
M -4...........................................................
M -5...........................................................
278.3
576.5
921.8
640.5
985.8
291.3
617.5
983.8
708.0
1,074.3
303.2
669.3
1,094.3
752.8
1,177.7
309.4
722.8
1,204.9
786.9
1,269.0
312.5
129 A
1,215.7
792.3
1,278.6
321.7
744.3
1,236.9
808.6
1,301.2
COMPONENTS
17 Currency.................................................
Commercial bank deposits:
18
Demand...............................................
19
Member..........................................
20
Domestic nonmember..................
21
Time and savings................................
22
Negotiable C D ’s2 .........................
24 Nonbank thrift institutions3...............
25 U.S. Govt, deposits (all commercial
banks)..............................................
62.7
69.0
75.1
79.6
80.8
82.1
80.7
80.9
81.7
82.9
215.7
156.5
56.3
362.2
64.0
298.2
222.2
159.7
58.5
416.7
90.5
326.3
228.1
162.1
62.6
449.6
83.5
366.2
229.8
161.7
64.9
477.5
64.2
413.4
231.7
162.5
65.9
479.8
62.9
416.9
239.5
168.4
67.5
486.9
64.3
422.6
239.5
168.1
67.9
492.8
63.1
429.7
229.5
161.0
65.0
496.4
61.3
435.1
231.4
162.1
65.7
502.0
60.8
441.2
240.2
167.6
68.9
504.7
60.1
444.7
345.3
366.3
424.9
482.1
486.3
492.6
500.2
505.9
513.6
520.4
6.3
4.9
4.1
4 .0
4.1
4.5
3.9
4.1
4.3
5.3
i Composition of the money stock measures is as follows:
M -l: Averages o f daily figures for (1) demand deposits o f commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process o f collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults
o f commercial banks.
M-2: M -l plus savings deposits, time deposits open account, and time
certificates o f deposits (CD’s) other than negotiable CD’s o f $100,000 or
more o f large weekly reporting banks.
M -3: M-2 plus the average o f the beginning and end-of-month deposits
o f mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
M-4: M-2 plus large negotiable C D ’s.
M -5: M-3 plus large negotiable C D ’s.
For a description o f the latest revisions in the money stock measures’
see “Money Stock Measures Revisions” on pp. 305-306 of the March
1977 B u l l e t i n .
Latest monthly and weekly figures are available from the Board’s H.6
release. Back data are available from the Banking Section, Division of
Research and Statistics.
2 Negotiable time C D ’s issued in denominations o f $100,000 or more
by large weekly reporting commercial banks.
3 Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
NOTES TO TABLE 1.23:
1 Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright to banks’ own foreign branches,
nonconsolidated nonbank affiliates o f 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 o f banks
was also different. On the new basis, both “Total loans” and “Com
mercial and industrial loans” were reduced by about $100 million.
3 Reclassification o f loans reduced these loans by about $1.2 billion
as o f Mar. 31, 1976.
4 Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As o f that date
there were increases o f about $500 million in loans, $100 million in
“Other securities,” and $600 million in “Total loans and investments.”
As of Oct. 31, 1974, “Total loans and investments” o f all commercial
banks were reduced by $1.5 billion in connection with the liquidation
o f 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 o f loan re
classifications at another large bank.
5 Data revised beginning July 1976 to conform with Dec. 1976 call
report benchmarks. Complete revisions will be published in the Annual
Statistical Digest, 1972-1976.
N o t e . —Data are for last Wednesday o f month except for June 30
and Dec. 31; data are partly or wholly estimated except when June 30
and Dec. 31 are call dates.
M onetary Aggregates
1.22 A G G R E G A TE RESERVES A N D DEPOSITS
Billions of dollars, averages of daily figures
Member Banks
1976
1973
Dec.
Item
A15
1974
Dec.
1977
1975
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Seasonally adjusted
1 Reserves 1..........................................................................
2
Nonborrowed...............................................................
Required........................................................................
3
4 Deposits subject to reserve requirements 2 .................
Time and savings........................................................
5
Demand:
Private........................................................................
6
U.S. Govt..................................................................
7
34.94
33.64
34.64
442.3
279.2
33.60
35.87
36.34
486.2
322.1
34.73
34.60
34.46
505.4
337.9
34.34
34.27
34.14
515.6
343.3
34.51
34.41
34.29
520.0
346.2
34.85
34.78
34.59
524.9
350.2
34.95
34.90
34.68
529.6
355.0
34.78
34.71
34.51
532.5
357.3
34.40
34.33
34.20
532.0
360.1
34.31
34,20
34,09
535.2
361.3
34.68
34.61
34.49
538.4
361.4
158.1
5.0
160.6
3.5
164.5
3.0
168.7
3.6
170.4
3.4
170.7
4 .0
171.4
3.2
172.5
2.7
169.5
2.5
171.1
2.8
173.4
3.6
8 Deposits plus nondeposit items 3 ..................................
448.9
494.6
513.8
523.8
529.0
534.0
538.8
540.8
539.5
542.9
546.1
Not seasonally adjusted
447.5
278.5
491.8
321.7
510.9
337.2
514.9
344.1
518.9
346.7
522.5
347.6
534.8
353.6
537.7
357.0
528.7
358.4
534.0
361.7
541.3
362.3
164.0
5.0
166.6
3.4
170.7
3.1
167.2
3.6
169.5
2.8
171.9
3.0
177.9
3.3
177.8
2.9
167.2
3.1
169.1
3.2
175.0
4 .0
454.0
9 Deposits subject to reserve requirements 2 .................
10 Time and savings.........................................................
Demand:
Private........................................................................
11
U.S. Govt..................................................................
12
500.1
519.3
523.1
527.9
531.5
544.0
546.0
536.2
541.7
549.0
1 Series reflects actual reserve requirement percentages with no adjust
ment to eliminate the effect o f changes in Regulations D and M. There
are breaks in series because o f changes in reserve requirements effective
Dec. 12,1974; Feb. 13, May 22, and Oct. 30,1975; Jan. 8, and Dec. 30,1976.
In addition, effective Jan. 1, 1976, statewide branching in New York
was instituted. The subsequent merger o f a number o f banks raised
required reserves because o f higher reserve requirements on aggregate
deposits at these banks.
2 Includes total time and savings deposits and net demand deposits as
defined by Regulation D . Private demand deposits include all demand
1 .2 3
L O A N S
A N D
I N V E S T M
E N T S
deposits except those due to the U.S. Govt., less cash items in process of
collection and demand balances due from domestic commercial banks.
3 “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.”
N o t e . —Back data and estimates o f the impact on required reserves
and changes in reserve requirements are shown in Table 14 of the Board’s
Annual Statistical Digest, 1971-1975.
A l l C o m m e rc ia l B a n k s
Billions o f dollars; last Wednesday o f month except for June 30 and Dec. 31
1973
Dec. 31
1974 4
Dec. 31
19765
19775
1975
Dec. 31
Category
Nov. 24 Dec. 31
Jan. 26
V
Feb. 23
V
Mar. 30 Apr. 27
V
V
May 25
p
Seasonally adjusted
1 Loans and investments1.............................................
2
Including loans sold outright2 ............................
633.4
637.7
690.4
695.2
721.1
725.5
778.8
782.6
784.4
788.2
786.6
790.6
796.4
800.3
803.0
807.0
812.4
816.4
819.4
823.4
3
4
5
6
L oans:
T otal..........................................................................
Including loans sold outright2 ........................
Commercial and industrial3 ................................
Including loans sold outright2, 3.....................
449.0
453.3
156.4
159.0
500.2
505.0
183.3
186.0
496.9
501.3
176.0
178.5
533.1
536.9
179.0
181.4
538.9
542.7
179.5
181.9
540.9
544.9
179.8
182.4
545.4
549.3
181.2
183.8
551.0
555.0
182.9
185.6
557.7
561.7
184.9
187.7
562.1
566.1
185.9
188.7
7
8
Investments:
U.S. Treasury..........................................................
Other.........................................................................
54.5
129.9
50.4
139.8
79.4
144.8
95.4
150.3
97.3
148.2
96.9
148.8
101.5
149.5
103.6
148.4
102.8
151.9
104.6
152.7
Not seasonally adjusted
9 Loans and investments1.............................................
10
Including loans sold outright..............................
647.3
651.6
705.6
710.4
737.0
741.4
778.5
782.3
801.6
805.4
784.9
788.9
790.9
793.9
801.1
805.1
809.6
813.6
816.6
820.6
11
12
13
14
Loans:
T otal1........................................................................
Including loans sold outright2 ........................
Commercial and industrial3................................
Including loans sold outright2, 3.....................
458.5
462.8
159.4
162.0
510.7
515.5
186.8
189.5
507.4
511.8
179.3
181.8
531.9
535.7
178.3
180.7
550.2
554.0
182.9
185.3
536.0
540.0
177.8
180.4
538.9
542.8
179.4
182.0
547.7
551.7
182.8
185.5
553.5
557.5
185.1
187.9
561.3
565.3
186.1
188.9
15
16
Investments:
U.S. Treasury..........................................................
Other.........................................................................
58.3
130.6
54.5
140.5
84.1
145.5
98.0
148.6
102.5
148.9
101.1
147.9
102.6
148.5
104.7
148.7
103.0
153.1
101.9
153.4
For no s ebottom of opposite page.
tes e
A16
1 .2 4
Domestic Financial Statistics □ June 1977
C O M
M
E R C I A L
B A N K
A S S E T S
A N D
L I A B I L I T I E S
L a s t-W e d n e s d a y -o f-M o n th
S e r ie s
Billions o f dollars except for number o f banks
1975
Account
Dec. 31
1976 3
Aug.
Sept.
Oct.
1977
Nov.
Dec.
Jan.?
Feb.*
Mar.p
Apr.P
J MayP
All commercial
1 Loans and investments.................
2
Loans, gross..............................
Investments:
3
U.S. Treasury securities. .
4
Other......................................
775.8
546.2
791.6
553.1
800.8
560.2
808.0
566.5
817.6
571.0
846.4
594.9
824.2
575.3
831.6
580.4
840.4
587.0
846.5
590.4
853.1
597.8
84.1
145.5
92.5
146.1
93.5
147.0
94.4
147.1
98.0
148.6
102.5
148.9
101.1
147.9
102.6
148.5
104.7
148.7
103.0
153.1
101.9
153.4
5
6
7
8
9
Cash assets....................................
Currency and coin...................
Reserves with F.R. Banks. . .
Balances with banks................
Cash items in process o f collection..
133.6
12.3
26.8
47.3
47.3
109.9
12.1
25.4
36.7
35.7
119.8
12.4
29.8
37.0
40.7
116.9
12.7
26.4
38.2
39.7
127.0
11.9
29.1
42.5
43.5
136.1
12.1
26.1
49.6
48.4
120.1
12.8
28.6
39.2
39.6
127.1
12.5
28.6
41.5
44.4
122.8
12.9
26.9
41.9
41.1
122.7
13.3
28.2
40.1
41.0
119.4
13.1
24.0
41.3
41.0
10
Total assets/total liabilities and
capital1......................................
964.9
948.8
969.7
973.7
995.7 1,030.7
996.7 1,011.6
1,018.2
1,024.8
1,026.9
786.3
764.7
779.2
784.4
796.5
838.2
801.0
809.3
817.1
819.4
818.9
41.8
3.1
278.7
32.9
3.7
249.5
34.6
5.8
255.2
34.0
3.7
260.8
39.1
3.4
264.0
45.4
3.0
288.4
35.3
4 .0
260.6
36.6
3.8
264.5
37.6
3.1
263.1
33.9
7.4
267.9
35.2
3.6
262.8
12.0
450.6
9 .7
468.9
9.6
473.9
9 .2
476.6
9.1
481.0
9 .2
492.2
8.8
492.3
8.6
495.9
8.9
504.4
8 .6
501.6
8.5
508.8
60.2
69.1
72.6
73.0
78.1
73.7
76.7
74.3
84.6
74.8
80.2
78.1
82.5
76.3
87.6
76.8
84.5
77.1
88.2
77.5
87.6
78.1
14,633
14,650
14,656
14,660
14,674
14,671
14,667
14,688
14,685
14,690
14,690
11
Demand:
12
13
14
15
16
17
18
U.S. Govt............................
Other....................................
Time:
Interbank...............................
Other......................................
Borrowings....................................
19
Member
20
21
Loans and investments................
Loans, gross..............................
Investments:
U.S. Treasury securities. ..
578.6
416.4
580.3
412.9
585.7
417.2
590.7
421.6
597.6
424.1
620.5
442.9
600.9
426.3
605.9
429.9
611.8
434.6
614.8
435.9
620.2
441.5
61.5
100.7
66.7
100.7
67.0
101.5
67.7
101.4
70.8
102.7
74.6
103.1
72.6
102.0
73.7
102.3
74.9
102.3
73.0
105.8
72.6
106.1
24
25
26
27
28
Cash assets, total.........................
Currency and coin...................
Reserves with F.R. Banks. . .
Balances with banks...............
Cash items in process o f collection..
108.5
9 .2
26.8
26.9
45.5
89.4
9 .0
25.4
20.5
34.4
98.9
9 .2
29.8
20.6
39.3
94.9
9.5
26.4
20.9
38.2
103.0
8.9
29.1
23.3
41.8
108.9
9.1
26.0
27.4
46.5
97.7
9.5
28.6
21.5
38.1
102.8
9.3
28.6
22.2
42.7
100.0
9.6
26.9
24.0
39.5
99.4
9.9
28.2
21.9
39.4
95.7
9.7
24.0
22.6
39.3
29
Total assets/total liabilities and
capital1......................................
733.6
710.7
726.8
727.6
744.8
772.9
744.6
755.1
759.7
762.7
763.9
590.8
562.3
573.9
576.1
584.8
618.7
587.0
592.0
598.1
597.8
597.4
38.6
3.2
210.8
30.9
2 .8
185.9
32.7
4.3'
191.0
32.2
2.9
194.7
37.2
2.4
196.0
42.4
2.1
215.5
33.1
3 .0
193.7
34.1
2 .7
196.6
35.3
2.1
195.9
31.6
5.9
199.0
32.9
2.7
195.1
10.0
329.1
7 .6
335.1
7.5
338.4
7.1
339.2
7.0
342.1
7.2
351.5
6.8
350.3
6.6
351.9
6.9
357.9
6.6
354.7
6.5
360.3
53.6
52.1
65.9
55.4
70.6
55.7
69.1
56.2
76.4
56.6
71.7
58.6
73.6
57.7
78.0
57.9
75.3
58.1
78.1
58.3
77.5
58.8
5,788
5,772
5,774
5,769
5,767
5,759
5,739
5,740
5,739
5,726
5,726
22
23
30
31
32
33
34
35
D emand:
Interbank.............................
U.S. Govt..............................
Other....................................
Time:
Interbank.............................
Other....................................
36
37
Borrowings..................................
Total capital accounts2 .............
38
M em o: Number o f banks.
1 Includes items not shown separately.
Effective Mar. 31, 1976, some o f the item “reserve for loan losses”
and all o f the item “unearned income on loans” are no longer reported
as liabilities. As o f that date the “valuation” portion o f “reserve for
loan losses” and the “unearned income on loans” have been netted
against “other assets,” and against “total assets” as well.
Total liabilities continue to include the deferred income tax portion of
“reserve for loan losses.”
2 Effective Mar. 31, 1976, includes “reserves for securities” and the
contingency portion (which is small) o f “reserve for loan losses.”
3 Figures partly estimated except on call dates.
N o t e . —Figures include all bank-premises subsidiaries and other sig
nificant majority-owned domestic subsidiaries.
Commercial banks: All such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches o f foreign banks, but excluding one na
tional bank in Puerto Rico and one in the Virgin Islands.
Member banks: The following numbers o f noninsured trust companies
that are members o f the Federal Reserve System are excluded from mem
ber banks in Tables 1.24 and 1.25 and are included with noninsured banks
in Table 1.25: 1974—June, 2; December, 3; 1975—June and December,
4; 1976 (beginning month shown)—July, 5, December, 7; 1977-January 8.
Commercial Banks
1.25 COM M ERCIAL BANK ASSETS A N D LIABILITIES
M
illions of dollars except for num of banks
ber
Call-Date Series
1976
1975
1975
Account
June 30
Dec. 31
June 30
Dec. 31
June 30
Total insured
1976
Dec. 31
June 30
Dec. 31
National (all insured)
736,164
1
2
3
A ll
Loans:
Gross.....................................................................
N et.........................................................................
Investments:
U.S. Treasury securities....................................
762,400
773,696
827,692
428,167
441,135
443,955
476,602
526,272
( 2)
535,170
( 2)
539,017
520,970
578,712
560,069
312,229
(2)
315,738
( 2)
315,624
305,275
340,679
329,968
101,459
147,520
129,578
37,606
78,331
75,686
46,799
78,598
78,026
49,688
78,642
75,488
55,729
80,193
76,074
4
5
6
Cash assets....................................................................
67,833
142,060
125,181
83,629
143,602
128,256
90,947
143,731
124,072
7
Total assets/total liabilities1......................................
914,781
944,654
942,510 1,004,020
536,836
553,285
548,697
583,315
Deposits........................................................................
Demand:
U.S. G ovt.............................................................
Interbank..............................................................
746,348
775,209
776,957
825,001
431,646
447,590
444,251
469,378
3,106
41,244
261,903
3,108
40,259
276,384
4,622
37,503
265,670
3,020
44,072
285,190
1,723
21,096
152,576
1,788
22,305
159,840
1,674
23,148
163,347
4,909
276,298
8
9
10
11
12
13
Time:
Interbank.............................................................
Other.....................................................................
10,252
429,844
10,733
444,725
9,407
459,754
8,250
484,468
6,804
249,446
7,302
256,355
2,858
20,329
152,382
’*
5,532
263,148
14
15
Borrowings...................................................................
Total capital accounts................................................
59,310
65,986
56,775
68,474
63,823
68,989
75,308
72,070
41,954
37,483
40,875
38,969
45,183
39,502
54,420
41,323
16
M em o: Number o f banks........................................
14,320
14,372
14,373
14,397
4,730
4,741
4,747
4,735
State member (all insured)
Insured nonmember
17 Loans and investments, Gross..................................
Loans:
18
Gross.....................................................................
19
N et.........................................................................
Investments:
20
U.S. Treasury securities....................................
21
Other......................................................................
22
134,759
137,620
136,915
144,000
173,238
183,645
192,825
207,089
100,968
( 2)
100,823
( 2)
98,889
96,037
102,278
99,475
113,074
( 2)
118,609
(2)
124,503
119,658
135,754
130,626
12,004
21,787
31,466
14,720
22,077
30,451
16,323
21,702
30,422
18,847
22,874
32,859
18,223
41,942
18,029
22,109
42,927
19,778
24,934
43,387
18,161
26,882
44,451
20,644
23
179,787
180,495
179,645
189,573
198,157
21Q,874
214,167
231,130
141,995
143,409
142,061
149,481
172,707
184,210
190,644
206,141
443
18,751
48,621
467
16,265
50,984
869
15,834
49,658
429
19,296
52,194
940
1,397
60,706
853
1,689
65,560
894
1,339
63,629
917
1,627
69,648
2,771
71,409
2,712
72,981
3,074
72,624
2,384
75,177
676
108,989
719
115,389
799
123,980
957
132,991
Total assets/total liabilities........................................
24
25
26
27
28
29
Demand:
U.S. G ovt.............................................................
Interbank..............................................................
Time:
Interbank..............................................................
30
31
Total capital accounts.................................................
14,380
12,773
12,771
13,105
15,300
12,791
17,318
13,199
2,976
15,730
3,128
16,400
3,339
16,696
3,569
17,547
32
M em o : Number o f banks........................................
1,064
1,046
1,029
1,023
8,526
8,585
8,597
8,639
Noninsured nonmember
Total nonmember
Loans and investments, Gross..................................
Loans:
Gross.....................................................................
N et................................... .....................................
Investments:
U.S. Treasury securities....................................
11,725
13,674
15,905
18,819
184,963
197,319
208,730
225,908
9,559
( 2)
11,283
(2)
13,209
13,092
16,336
16,209
122,633
( 2)
129,892
(2)
137,712
132,751
152,091
146,836
358
1,808
3,534
490
1,902
5,359
472
2,223
4,362
1,054
1,428
6,496
18,581
43,750
21,563
22,599
44,829
25,137
25,407
45,610
22,524
27,936
45,880
27,141
39
Total assets/total liabilities........................................
16,277
20,544
21,271
26,790
214,434
231,418
235,439
257,921
40
Deposits.........................................................................
Demand:
U.S. G ovt.............................................................
Interbank..............................................................
8,314
11,323
11,735
13,325
181,021
195,533
202,380
219,467
11
1,338
2,124
6
1,552
2,308
4
1,006
2,555
4
1,277
3,236
951
2,735
62,830
859
3,241
67,868
899
2,346
66,184
921
2,904
72,884
957
3,883
1,291
6,167
1,292
6,876
1,041
7,766
1,633
112,872
2,010
121,556
2,092
130,857
1,998
140,758
33
34
35
36
37
38
41
42
43
Time:
44
45
46
47
Total capital accounts.................................................
3,110
570
3,449
651
3,372
663
4,842
818
6,086
16,300
6,577
17,051
6,711
17,359
8,412
18,366
48
M em o : Number o f banks........................................
253
261
270
275
8,779
8,846
8,867
8,914
1 Includes items not shown separately.
2 N ot available.
For Note s eTable 1.2 .
e
4
A18
Domestic Financial Statistics □ June 1977
1.26 COM M ERCIAL BANK ASSETS A N D LIABILITIES
A and liability item are show in m
sset
s
n
illions of dollars.
Detailed Balance Sheet, December 31, 1976<«
Member banks1
Asset account
Insured
All
commercial commercial
banks
banks
Large banks
Total
New York
City
All other
City of
Chicago
Non
member
banks1
Other
large
129,578
12,115
25,968
32,964
5,763
4,509
48,260
108,934
9,066
25,968
19,711
3,623
4,046
46,520
29,494
832
3,585
7,389
193
836
16,659
3,934
220
1,423
196
34
23
2,038
40,471
3,048
10,627
3,324
1,434
2,102
19,937
35,034
4,965
10,334
8,804
1,961
1,085
7,886
27,141
3,059
Demand balances with banks in United States..
Other balances with banks in United States___
Balances with banks in foreign countries...........
Cash items in process o f collection......................
136,075
12,124
25,968
36,815
6,972
5,823
48,374
8 Total securities held—Book value..............................
9
U.S. Treasury............................................................
10
Other U.S. Govt, agencies......................................
11
States and political subdivisions...........................
12
All other securities...................................................
n
249,882
102,514
35,838
104,661
6,732
137
247,439
101,460
35,269
104,374
6,220
116
176,333
74,577
22,150
75,310
4,217
78
21,349
11,823
1,355
7,751
421
8,157
4,072
500
3,349
236
57,755
25,735
6,237
24,546
1.191
47
89,072
32,948
14,059
39,665
2,370
30
73,549
27,937
13,688
29,350
2,515
60
1 Cash bank balances, items in process.......................
2
Currency and coin...................................................
4
5
6
7
17,103
3,349
1.777
1,854
14
15
16
17
18
19
Trading-account securities.......................................
U.S. Treasury........................................................
Other U.S. Govt, agencies.................................
States and political subdivisions.......................
All other trading acct. securities.......................
7,904
5,011
991
1,324
440
137
7,882
5,011
991
1,324
440
116
7,650
4,861
975
1,297
440
78
3,251
2,386
259
479
127
832
582
55
110
86
3,246
1,705
624
660
209
47
322
188
38
48
17
30
253
151
15
27
20
21
22
23
24
Bank investment portfolios......................................
U.S. Treasury........................................................
Other U.S. Govt, agencies.................................
States and political subdivisions.......................
All other portfolio securities.............................
241,979
97,503
34,847
103,336
6,292
239,557
96,449
34,279
103,049
5,780
168,683
6 9 ,111
21,175
74,013
3,778
18,098
9,437
1,096
7,272
293
7,325
3,490
445
3,239
151
54,510
24,030
5,613
23,885
981
88,750
32,760
14,021
39,617
2,352
73,296
27,786
13,672
29,323
2,515
60
25 F.R. stock and corporate stock................................
1,580
1,541
1,313
281
86
497
449
268
26 Federal funds sold and securities resale agreement. .
27
Commercial banks....................................................
28
Brokers and dealers..................................................
29
Others.........................................................................
48,346
40,199
5,775
2,373
45,767
37,876
5,693
2,198
36,378
28,780
5,499
2,099
1,993
979
610
404
1,339
1,035
192
113
19,648
14,217
3,981
1,450
13,398
12,550
716
132
11,968
11,419
275
273
30 Other loans, gross.........................................................
31
L ess: Unearned income on loans.........................
32
Reserves for loan lo ss..................................
33
Other loans, net........................................................
546,704
12,577
6,192
527,934
532,945
12,526
6,116
514,303
406,579
8,614
4,899
393,066
75,468
561
1,185
73,722
21,807
82
300
21,426
148,516
2,856
1,751
143,909
160,788
5,117
1,663
154,008
140,124
3,963
1,293
134,869
34
35
36
37
38
39
40
41
42
43
44
Other loans, gross, by category
Real estate loans.......................................................
Construction and land development................
Secured by farmland............................................
Secured by residential..........................................
1- to 4-family residences..................................
FHA-insured or VA-guaranteed...............
Conventional................................................
Multifamily residences.....................................
FHA-insured.................................................
Conventional................................................
Secured by other properties...............................
149,483
16,644
6,721
84,922
80,394
7,956
72,438
4,528
388
4,140
41,195
149,276
16,638
6,710
84,784
80,265
7,919
72,346
4,519
387
4,132
41,144
104,714
13,153
2,868
60,487
57,201
6,859
50,342
3,286
323
2,963
28,206
9,419
2,801
16
4,433
3,992
611
3,381
441
122
320
2,169
1,848
382
14
944
845
49
797
99
25
74
509
37,462
6,039
295
21,816
20,639
3,670
16,968
1,178
95
1,083
9,311
55,984
3,931
2,543
33,294
31,726
2,529
29,196
1,568
82
1,486
16,216
44,769
3,491
3,853
24,435
23,193
1,097
22,096
1,242
64
1,177
12,989
45
46
47
48
49
50
51
52
53
54
55
Loans to financial institutions.................................
To REIT’s and mortgage companies...............
To domestic commercial banks.........................
To banks in foreign countries...........................
To other depositary institutions.......................
To other financial institutions...........................
Loans to security brokers and dealers.................
Other loans to purch./carry securities.................
Loans to farmers—except real estate...................
Commercial and industrial loans..........................
Loans to individuals................................................
42,427
9,982
4,531
10,880
1,482
15,552
11,420
4,032
23,282
182,920
118,408
35,738
9,855
2,774
6,617
1,340
15,151
11,075
4,015
23,259
177,128
118,051
33,760
9,516
2,196
6,487
1,173
14,389
10,793
3,329
12,971
145,849
82,896
12,048
3,496
606
3,022
163
4,761
6,900
336
128
37,893
6,003
4,383
1,301
127
290
24
2,641
1,417
317
149
11,018
1,820
14,349
4,045
1,126
2,717
789
5,672
2,267
1,701
3,028
55,108
29,066
2,981
614
331
451
198
1,315
209
975
9,667
41,830
46,005
8,666
466
2,335
4,393
309
1,164
627
703
10,311
37,071
35,512
56
57
58
59
60
61
62
63
64
65
66
67
Instalment loans.........................................................
Passenger automobiles....................................
Residential-repair/modernize.........................
Credit cards and related plans.......................
Charge-account credit cards......................
Check and revolving credit plans.............
Other retail consumer goods.........................
Mobile hom es...............................................
Other...............................................................
Other instalment loans....................................
Single-payment loans to individuals.................
All other loans..........................................................
94,078
39,862
6,523
14,358
11,317
3,041
15,937
8,743
7,195
17,397
24,330
14,732
93,751
39,588
6,522
14,353
11,317
3,036
15,930
8,742
7,189
17,358
24,300
14,405
65,619
25,641
4,589
12,675
10,172
2,504
10,974
6,217
4,757
11,739
17,276
12,267
4,428
790
324
1,649
1,186
463
327
173
154
1,338
1,575
2,741
1,040
136
55
669
637
33
73
28
44
106
781
855
23,385
1,391
1,808
6,935
5,731
1,205
3,886
2,231
1,654
3,360
5,681
5,533
36,766
17,318
2,403
3,422
2,618
803
6,689
3,785
2,904
6,935
9,239
3,137
28,458
14,221
1,933
1,683
1,146
537
4,963
2,525
2,438
5,658
7,054
2,466
68 Total loans and securities, net....................................
827,742
809,050
607,089
97,344
31,009
221,810
256,927
220,653
5,111
19,539
2,341
9,505
30,498
5,111
19,448
2,303
9,147
29,384
4,865
14,616
2,272
8,758
26,355
1,088
1,949
1,000
4,125
9,322
129
662
206
111
1,651
2,910
5,680
978
4,169
11,257
738
6,325
89
288
4,126
246
4,923
68
747
4,142
1,030,811 1,004,020
772,890
144,323
37,767
287,274
303,526
257,922
69
70
71
72
73
Direct lease financing..................................................
Fixed assets—Buildings, furniture, real estate. . . .
Investment in unconsolidated subsidiaries.............
Customer acceptances outstanding...........................
Other assets...................................................................
For notes s e opposite page.
e
Commercial Banks
A19
1.26 Continued-^
Member banks1
Liability or capital
account
Insured
All
commercial commercial
banks
banks
N on
member
banks1
Large banks
Total
All other
New York
City
City of
Chicago
Other
large
75 Demand deposits.........................................................
76
Mutual savings banks............................................
77
Other individuals, partnerships, and
corporations....................................................
78
U.S. Govt.................................................................
79
States and political subdivisions.........................
80
Foreign governments, central banks, etc...........
81
Commercial banks in United States...................
82
Banks in foreign countries....................................
83
Certified and officers’ checks, etc........................
336,800
1,684
332,283
1,385
260,090
1,254
60,201
624
10,267
2
92,746
268
96,876
360
76,711
430
255,433
3,025
17,715
2,414
36,256
7,410
12,864
254,221
3,020
17,648
1,846
35,926
6,761
11,475
192,616
2,103
12,071
1,813
34,679
6,512
9,041
32,600
134
645
1,365
16,412
5,345
3,076
7,552
41
125
35
2,022
174
318
72,262
669
3,568
387
11,852
862
2,878
80,201
1,259
7,733
26
4,394
132
2,769
62,818
921
5,644
601
1,577
898
3,822
84 Time deposits...............................................................
85
Accumulated for personal loan payments........
86
Mutual savings banks............................................
87
Other individuals, partnerships, and
corporations...................................................
88
U.S. Govt.................................................................
89
States and political subdivisions.........................
90
Foreign governments, central banks, etc...........
91
Commercial banks in United States...................
92
Banks in foreign countries....................................
298,276
146
339
289,949
146
317
212,936
118
296
33,842
12,151
145
6
73,759
10
125
93,183
108
20
85,340
28
43
233,964
675
44,165
10,044
7,139
1,803
228,522
675
43,885
8,481
6,709
1,213
166,393
514
30,407
8,218
5,858
1,132
25,005
66
1,203
4,574
2,148
702
8,745
27
861
1,408
1,011
94
56,289
205
12,835
2,185
1,878
231
76,354
216
15,508
52
820
106
67,571
161
13,758
1,827
1,281
670
93 Savings deposits...........................................................
94
Individuals and nonprofit organizations...........
95
Corporations and other profit organizations...
96
U.S. Govt.................................................................
97
All other...................................................................
203,251
188,391
8,642
6,103
115
202,770
187,922
8,633
6,100
114
145,835
134,596
6,420
4,719
100
11,157
10,209
480
388
79
2,983
2,782
175
25
54,407
49,570
2,761
2,060
16
77,288
72,036
3,003
2,245
4
57,416
53,795
2,222
1,384
15
98 Total deposits.............................................................
838,328
825,002
618,860
105,200
25,401
220,912
267,347
219,468
99 Federal funds purchased and securities sold under
agreements to repurchase..................................
100
Commercial banks..................................................
101
Brokers and dealers................................................
102
Others.......................................................................
103 Other liabilities for borrowed money.....................
104 Mortgage indebtedness..............................................
105 Bank acceptances outstanding.................................
106 Other liabilities...........................................................
72,847
42,819
5,603
24,425
7,304
776
10,118
23,389
70,188
40,613
5,577
23,998
5,120
774
9,755
16,013
66,899
39,195
5,345
22,360
4,840
548
9,366
13,772
15,000
6,523
949
7,529
2,500
66
4,714
4,539
8,643
7,241
29
1,373
49
15
177
805
34,537
20,844
3,651
10,041
1,919
271
4,186
5,298
8,719
4,587
716
3,416
372
196
288
3,129
5,948
3,624
258
2,066
2,464
227
752
9,617
107 Total liabilities.............................................................
952,761
926,852
714,285
132,020
35,091
267,122
280,052
238,476
108 Subordinated notes and debentures.......................
5,161
5,098
4,082
1,124
83
1,823
1,053
1,079
109 Equity capital...............................................................
110 Preferred stock........................................................
111
Common stock........................................................
112
Surplus......................................................................
113
Undivided profits....................................................
114
Other capital reserves............................................
72,889
73
16,238
29,205
25,505
1,868
72,070
67
16,143
28,791
25,266
1,803
54,522
25
11,882
21,407
19,929
1,279
11,179
2,593
2,453
4,229
4,406
91
570
1,243
728
52
18,329
2
3,818
7,655
6,422
432
22,421
23
5,041
8,280
8,373
705
18,366
48
4,356
7,798
5,575
589
115 Total liabilities and equity capital........................... 1,030,811
1,004,020
772,890
144,323
37,767
287,274
303,526
257,922
M em o item s :
116 Demand deposits adjusted2......................................
Average for last 15 or 30 days:
117
Cash and due from bank......................................
118
Federal funds sold and securities purchased
under agreements to resell...........................
119
Total loans*.............................................................
120
Time deposits o f $100,000 or more....................
121
Total deposits..........................................................
122
Federal funds purchased and securities sold
under agreements to repurchase.................
123
Other liabilities for borrowed money.................
249,146
245,076
176,787
26,996
6,167
60,288
83,336
72,359
129,797
125,226
106,860
29,510
4,372
39,824
33,154
22,936
48,860
529,177
139,381
816,113
45,794
515,977
132,893
803,019
35,440
394,113
109,644
600,420
2,307
73,976
28,517
98,932
1,425
21,349
9,682
24,869
17,825
143,957
43,372
213,361
13,883
154.831
28,073
263,259
13,420
135,064
29,736
215,693
80,161
6,936
77,949
4,686
74,703
4,396
20,453
2,165
9,340
53
35,775
1,842
9,135
335
5,458
2,540
124 Standby letters o f credit outstanding.....................
125 Time deposits o f $100,000 or m ore........................
126
Certificates o f deposit............................................
127
Other time deposits................................................
13,493
141,153
117,258
23,895
12,969
135,031
113,275
21,756
11,340
111,415
92,891
18,524
6,494
28,795
24,451
4,344
921
9,582
8,276
1,306
3,162
44,546
35,878
8,668
762
28,492
24,285
4,207
2,153
29,738
24,368
5,371
128 Number o f banks.......................................................
14,672
14,397
5,758
12
9
154
5,583
3,914
>4 Data for insured commercial banks for Sept. 30, 1976, appear on
pp. A-70 and A-71.
1 Member banks exclude and nonmember banks include 8 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process o f collection.
N o t e . — Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned do
mestic subsidiaries. Securities are reported on a gross basis before deduc
tions o f valuation reserves. Holdings by type of security will be reported
as soon as they become available.
Back data in lesser detail were shown in previous B u l l e t in s . Details
may not add to totals because of rounding.
Domestic Financial Statistics o June 1977
A20
1 .2 7
A
L L
L A R G
E
W
E E K L Y
R E P O R T I N G
C O M
M
E R C I A L
B A N K S
A s s e ts a n d
L ia b ilitie s
Millions o f dollars, Wednesday figures
1977
Account
Apr. 6
2
3
4
5
6
7
8
9
10
12
13
14
15
16
Loans:
Federal funds sold1...................................................
To commercial banks..........................................
To brokers and dealers involving—
U.S. Treasury securities..................................
Other securities.................................................
To others . ..............................................................
Other, gross................................................................
Commercial and industrial................................
Agricultural...........................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities..............................
To others:
U.S. Treasury securities..............................
Other securities.............................................
To nonbank financial institutions:
Personal and sales finance cos., etc..............
Other.............................................................
Real estate..............................................................
To commercial banks:
18
19
20
21
22
Foreign...............................................................
Consumer instalment..........................................
Foreign governments, official institutions, etc..
All other loans.......................................................
Less: Loan loss reserve and unearned income
23
Other loans, net.........................................................
24
25
Investments:
U.S. Treasury securities..........................................
Bills..........................................................................
Notes and bonds, by maturity:
28
29
30
31
33
After 5 years......................................................
Other securities..........................................................
Obligations o f States and political
subdivisions:
Tax warrants, short-term notes, and
bills.............................................................
All other.............................................................
Other bonds, corporate stocks, and
securities:
All other, including corporate stocks..........
34 Cash items in process o f collection..........................
36 Currency and co in ........................................................
38 Investments in subsidiaries not consolidated.........
Deposits:
42
43
44
Individuals, partnerships, and corporations..
States and political subdivisions.......................
U.S. Govt...............................................................
Domestic interbank:
47
48
Foreign:
Governments, official institutions, etc.........
Commercial banks...........................................
50
Time and savings deposits3 ....................................
52
53
Time:
Individuals, partnerships, and corporations
States and political subdivisions...................
55
Foreign govts., official institutions, etc........
56 Federal funds purchased, etc. 5 ..................................
Borrowings from :
60 Total equity capital and subordinated
Apr. 20
Apr. 27
May 4
May 11
May 18
May 25
421,508
416,608
417,691
413,848
417,810
416,589
418,864
417,430
27,804
18,622
23,622
17,392
22,015
17,488
20,737
16,637
22,471
18,378
20,626
15,941
22,221
17,216
22,297
16,840
6,226
1,133
1,823
4,143
679
1,408
2,517
538
1,472
2,284
414
1,402
2,130
505
1,458
2,589
488
1,608
2,805
431
1,769
3,334
346
290,470
117,285
4,300
290,674
117,416
4,336
290,555
117,555
4,368
290,663
117,647
4,384
292,452
117,998
4,435
292,498
117,928
4,483
293,685
117,752
4,521
292,717
117,620
4,541
2,756
8,043
2,269
7,852
1,284
8,648
1,382
7,999
1,141
8,458
1,171
8,406
1,661
8,928
1,720
8,178
82
2,492
81
2,535
97
2,503
97
2,489
96
2,484
95
2,493
98
2,525
92
2,519
7,230
15,771
65,005
7,284
15,768
65,151
7,202
15,776
65,302
7,222
15,785
65,424
7,538
15,872
65,539
7,482
15,789
65,768
7,408
15,786
65,957
7,389
15,594
66,072
2,112
5,383
39,805
1,704
18,502
2,220
5,667
39,967
1,745
18,383
1,896
5,497
40,117
1,653
18,657
2,014
5,505
40,378
1,662
18,675
1,944
5,626
40,526
1,615
19,180
1,978
5,735
40,676
1,641
18,853
1,953
5,743
40,812
1,626
18,915
1,880
5,616
41,053
1,584
18,859
8,600
281,870
8,658
282,016
8,708
281,847
8,728
281,935
8,739
283,713
8,828
283,670
8,880
284,805
8,908
283,809
51,488
11,663
50,241
10,449
50,369
10,287
47,696
7,597
48,413
8,254
48,713
8,703
48,390
8,880
47,673
8,361
8,425
27,215
4,185
60,346
8,427
27,170
4,195
60,729
8,502
27,291
4,289
63,460
8,382
27,495
A,222
63,480
8,295
27,597
4,267
63,213
8,327
27,536
4,147
63,580
8,467
26,864
4,179
63,448
8,356
26,797
4,159
63,651
6,169
40,712
6,649
40,638
8,937
40,699
8,922
40,817
8,793
40,816
9,139
40,891
8,748
40,947
8,724
41,142
2,178
11,287
2,107
11,335
2,162
11,662
2,175
11,566
2,178
11,426
2,086
11,464
2,060
11,693
2,114
11,671
37,447
12,783
5,211
12,520
2,573
53,544
37,522
21,580
6,027
12,609
2,584
53,839
37,433
19,493
5,939
12,664
2,609
52,564
35,856
21,402
6,083
12,396
2,608
52,997
40,013
23,544
5,285
12,923
2,618
53,957
35,088
20,998
5,820
11,828
2,641
53,562
40,525
19,038
5,770
12,898
2,684
52,512
35,813
17,261
5,947
13,054
2,689
53,101
545,586
1 Total loans and investments........................................
Apr. 13
550,769
548,393
545,190
556,150
546,526
552,291
545,295
176,422
127,687
5,912
1,796
176,531
130,418
6,080
1,511
176,414
128,207
5,986
3,523
173,317
125,598
6,205
4,881
175,034
124,046
6,729
3,074
166,628
122,621
5,751
1,670
173,809
125,296
5,844
2,350
168,388
121,511
5,896
1,814
25,451
968
24,679
868
24,785
850
22,780
804
25,461
944
23,072
816
25,136
828
24,188
783
1,090
5,628
7,890
233,858
95,398
1,062
5,626
6,287
232,731
95,034
1,039
5,444
6,580
231, 776
94,687
988
5,818
6,243
231,856
94,681
1,357
5,765
7,658
232,665
94,906
1,013
5,679
6,006
234,393
95,007
1,379
5,788
7,188
235,143
94,890
1,103
5,689
7,404
235,910
94,606
105,392
19,597
5,125
6,927
104,813
19,717
4,890
6,845
104,271
19,687
4,'729
6,943
104,271
19,908
4,624
6,940
104,870
19,823
4,564
7,080
105,774
20,198
4,596
7,375
106,192
20,340
4,567
7,665
107,026
20,644
4,518
7,573
65,164
71,850
70,894
69,285
77,029
73,927
71,647
68,359
8
4,063
24,023
16
3,565
24,011
28
3,412
23,829
423
3,438
24,783
68
3,333
25,718
261
3,268
25,702
138
3,507
25,638
339
3,850
26,005
42,048
42,065
42,040
42,088
42,303
42,347
42,409
42,444
1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits o f U.S. Govt, and o f foreign banks, which are
not shown separately.
4 For amounts o f these deposits by ownership categories, see Table 1.30.
1,777
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion o f reserves for loans.
7 Includes reserves for securities and contingency portion o f reserves
for loans.
Weekly Reporting Banks
1.28 LAR GE W EEK LY REPORTING COM M ERCIAL BANKS IN NEW Y O R K C IT Y
Millions of dollars, W
ednesday figures
A21
Assets and Liabilities
1977
Account
Apr. 6
1 Total loans and investments........................................
Loans:
Federal funds sold 1...................................................
2
3
To brokers and dealers involving—
U.S. Treasury securities..................................
4
5
To others................................................................
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Other, gross................................................................
Commercial and industrial.................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities..............................
Other securities.............................................
To' others:
U.S. Treasury securities..............................
Other securities.............................................
To nonbank financial institutions:
Personal and sales finance cos., etc..............
Other....................................................................
Real estate..............................................................
To commercial banks:
D om estic............................................................
Foreign................................................................
Consumer instalment...........................................
Foreign governments, official institutions, etc.
Less : Loan loss reserve and unearned income
on loans.....................................................
Other loans, net.........................................................
Apr. 13
Apr. 20
Apr. 27
89,454
88,857
90,949
89,395
90,567
91,057
93,020
91,386
2,123
1,236
2,591
1,512
2,922
1,797
3,213
2,173
3,298
2,362
3,489
2,021
4,421
2,773
3,860
2,357
439
586
527
516
412
851
915
800
448
493
598
524
524
617
733
703
68,375
34,074
120
68,098
33,847
123
67,275
33,750
126
66,897
33,543
128
66,941
33,505
135
66,858
33,326
134
67,457
33,230
136
67,001
33,222
138
2,354
4,460
2,012
4,305
1,027
4,946
1,160
4,422
922
4,440
953
4,412
1,424
4,963
1,503
4,387
11
367
10
368
25
340
25
340
25
344
25
345
25
348
24
347
2,377
5,065
8,875
2,386
5,034
8,841
2,278
5,049
8,823
2,357
5,043
8,806
2,512
5,135
8,736
2,497
5,081
8,779
2,340
5,041
8,772
2,374
5,020
8,788
561
2,338
3,974
391
3,408
848
2,568
4,002
435
3,319
540
2,428
4,009
383
3,551
610
2,455
4,017
388
3,603
557
2,479
4,031
357
3,763
685
2,594
4,041
389
3,597
598
2,591
4,060
369
3,560
606
2,593
4,069
356
3,574
1,571
66,804
1,592
66,506
1,597
65,678
1,592
65,305
1,610
65,331
1,642
65,216
1,652
65,805
1,648
65,353
12,095
3,107
11,201
2,447
11,913
3,229
10,528
1,633
11,663
2,988
11,939
3,428
12,327
3,824
11,712
3,253
875
7,035
1,078
8,432
894
6,866
994
8,559
898
6,815
971
10,436
891
7,008
996
10,349
843
6,925
907
10,275
910
6,791
810
10,413
1,149
6,532
822
10,467
1,040
6,511
908
10,461
815
5,963
863
6,049
2,494
6,025
2,504
5,999
2,397
6,041
2,563
6,053
2,503
6,087
2,482
6,140
213
1,441
213
1,434
215
1,702
215
1,631
244
1,593
214
1,583
213
1,664
212
1,627
May 4
May 11
May 18
May 25
32
33
Investments:
U.S. Treasury securities...........................................
Bills..........................................................................
Notes and bonds, by maturity:
Within 1 year.....................................................
1 to 5 years........................................................
After 5 years......................................................
Other securities..........................................................
Obligations o f States and political
subdivisions:
Tax warrants, short-term notes, and b ills..
All other.............................................................
Other bonds, corporate stocks, and
securities:
Certificates o f participation2.........................
All other, including corporate stocks..........
34
35
36
37
38
39
Cash items in process o f collection..........................
Reserves with F.R. Banks...........................................
Currency and co in ........................................................
Balances with domestic banks......................... ..........
Investments in subsidiaries not consolidated.........
Other assets....................................................................
12,795
2,406
839
5,408
1,198
18,548
11,675
6,533
919
5,930
1,213
18,968
11,668
4,324
945
5,813
1,242
17,770
11,539
4,160
944
5,623
1,241
17,967
13,368
6,256
885
5,860
1,244
19,055
10,984
5,514
919
5,394
1,268
18,761
14,804
4,543
877
5,914
1,267
18,377
12,851
4,067
865
6,333
1,284
18,744
40 Total assets/total liabilities..........................................
130,648
134,095
132,711
130,869
137,235
133,897
138,802
135,530
Deposits:
Demand deposits........................................................
Individuals, partnerships, and corporations..
States and political subdivisions.......................
U.S. Govt................................................................
Domestic interbank:
Commercial.......................................................
49,050
27,728
457
128
48,343
27,846
527
165
48,050
27,602
527
583
47,230
27,558
501
749
49,421
26,874
555
550
45,651
26,208
477
259
50,507
27,932
566
424
48,625
26,140
514
305
11,089
520
11,588
467
11,098
433
10,227
417
11,557
463
10,548
412
12,260
422
11,945
403
865
4,199
4,064
41,570
10,924
844
4,181
2,725
41,044
10,892
795
4,161
2,851
40,893
10,907
672
4,419
2,687
40,796
10,934
1,113
4,331
3,978
41,618
10,929
784
4,328
2,635
42,219
10,943
1,139
4,351
3,413
42,654
10,918
871
4,335
4,112
42,670
10,841
22,820
1,277
2,045
3,738
22,499
1,276
1,988
3,625
22,361
1,305
1,967
3,556
22,311
1,324
1,891
3,559
22,681
1,467
1,875
3,894
22,999
1,474
1,867
4,142
23,102
1,504
1,803
4,488
23,186
1,514
1,760
4,487
15,779
20,589
19,810
18,158
21,436
21,510
20,953
18,638
15
1,284
11,496
175
1,211
11,140
1,438
11,266
190
1,589
11,828
11,965
11,991
11,984
11,990
24
25
26
27
28
29
30
31
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Foreign:
Governments, official institutions, etc.........
Commercial banks...........................................
Certified and officers’ checks..............................
Savings4 ..................................................................
Time:
Individuals, partnerships, and corporations
States and political subdivisions...................
Domestic interbank.........................................
Foreign govts., official institutions, etc........
56 Federal funds purchased, etc.5 ..................................
Borrowings from:
57
F R Ranks.................................................................
Others......................................................................
58
59 Other liabilities, etc. 6 ...................................................
60 Total equity capital and subordinated
1,861
10,440
1,565
10,612
1,427
10,605
240
1,429
11,077
11,948
11,942
11,926
11,939
1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits o f U.S. Govt, and o f foreign banks, which
are not shown separately.
4 For amounts o f these deposits by ownership categories, see Table 1.30.
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion o f reserves for loans.
7 Includes reserves for securities and contingency portion o f reserves
for loans.
A22
1 .2 9
Domestic Financial Statistics □ June 1977
L A R G
E
W
A s s e ts a n d
E E K L Y
R E P O R T I N G
C O M
M
E R C I A L
B A N K S
O U T S I D E
N E W
Y O R K
C I T Y
L ia b ilitie s
M
illions of dollars, W
ednesday figures
1977
Apr. 6
Apr. 13
Apr. 20
Apr. 27
May 4
May 11
May 18
May 25
332,054
327,751
326,742
324,453
327,243
325,532
325,844
326,044
25,681
17,386
21,031
15,880
19,093
15,691
17,524
14,464
19,173
16,016
17,137
13,920
17,800
14,443
18,437
14,483
5,787
1,133
1,375
3,557
679
915
1,990
538
874
1,768
414
878
1,718
505
934
1,738
488
991
1,890
431
1,036
2,534
346
1,074
222,095
83,211
4,180
222,576
83,569
4,213
223,280
83,805
4,242
223,766
84,104
4,256
225,511
84,493
4,300
225,640
84,602
4,349
226,228
84,522
4,385
225,716
84,398
4,403
402
3,583
257
3,547
257
3,702
222
3,577
219
4,018
218
3,994
237
3,965
217
3,791
71
2,125
71
2,167
72
2,163
72
2,149
71
2,140
70
2,148
73
2,177
68
2,172
4,853
10,706
56,130
4,898
10,734
56,310
4,924
10,727
56,479
4,865
10,742
56,618
5,026
10,737
56,803
4,985
10,708
56,989
5,068
10,745
57,185
5,015
10,574
57,284
1,551
3,045
35,831
1,313
15,094
1,372
3,099
35,965
1,310
15,064
1,356
3,069
36,108
1,270
15,106
1,404
3,050
36,361
1,274
15,072
1,387
3,147
36,495
1,258
15,417
1,293
3,141
36,635
1,252
15,256
1,355
3,152
36,752
1,257
15,355
1,274
3,023
36,984
1,228
15,285
7,029
215,066
7,066
215,510
7,111
216,169
7,136
216,630
7,129
218,382
7,186
218,454
7,228
219,000
7,260
218,456
39,393
8,556
39,040
8,002
38,456
7,058
37,168
5,964
36,750
5,266
36,774
5,275
36,063
5,056
35,961
5,108
7,550
20,180
3,107
51,914
7,533
20,304
3,201
52,170
7,604
20,476
3,318
53,024
7,491
20,487
3,226
53,131
7,452
20,672
3,360
52,938
7,417
20,745
3,337
53,167
7,318
20,332
3,357
52,981
7,316
20,286
3,251
53,190
5,354
34,749
5,786
34,589
6,443
34,674
6,418
34,818
6,396
34,775
6,576
34,838
6,245
34,860
6,242
35,002
1,965
9,846
1,894
9,901
1,947
9,960
1,960
9,935
1,934
9,833
1,872
9,881
1,847
10,029
1,902
10,044
38 Investments in subsidiaries not consolidated.........
39 Other assets....................................................................
24,652
10,377
4,372
7,112
1,375
34,996
25,847
15,047
5,108
6,679
1,371
34,871
25,765
15,169
4,994
6,851
1,367
34,794
24,317
17,242
5,139
6,773
1,367
35,030
26,645
17,288
4,400
7,063
1,374
34,902
24,104
15,484
4,901
6,434
1,373
34,801
25,721
14,495
4,893
6,984
1,417
34,135
22,962
13,194
5,082
6,721
1,405
34,357
40 Total assets/total liabilities..........................................
414,938
416,674
415,682
414,321
418,915
412,629
413,489
409,765
127,372
99,959
5,455
1,668
128,188
102,572
5,553
1,346
128,364
100,605
5,459
2,940
126,087
98,040
5,704
4,132
125,613
97,172
6,174
2,524
120,977
96,413
5,274
1,411
123,302
97,364
5,278
1,926
119,763
95,371
5,382
1,509
14,362
448
13,091
401
13,687
A ll
12,553
387
13,904
481
12,524
404
12,876
406
12,243
380
225
1,429
3,826
192,288
84,474
218
1,445
3,562
191,687
84,142
244
1,283
3,729
190,883
83,780
316
1,399
3,556
191,060
83,747
244
1,434
3,680
191,047
83,977
229
1,351
3,371
192,174
84,064
240
1,437
3,775
192,489
83,972
232
1,354
3,292
193,240
83,765
82,572
18,320
3,080
3,189
82,314
18,441
2,902
3,220
81,910
18,382
2,762
3,387
81,960
18,584
2,733
3,381
82,189
18,356
2,689
3,186
82,775
18,724
2,729
3,233
83,090
18,836
2,764
3,177
83,840
19,130
2,758
3,086
49,385
51,261
51,084
51,127
55,593
52,417
50,694
49,721
8
2,202
13,583
16
2,000
13,399
28
1,985
13,224
183
2,009
13,706
53
2,049
14,222
86
2,057
14,562
138
2,069
14,372
149
2,261
14,177
30,100
30,123
30,114
30,149
30,338
30,356
30,425
30,454
1 Total loans and investments........................................
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Loans:
Federal funds sold1...................................................
To commercial banks..........................................
To brokers and dealers involving—
U.S. Treasury securities..................................
Other securities.................................................
To others................................................................
Other, gross................................................................
Commercial and industrial................................
Agricultural............................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities..............................
To others:
U.S. Treasury securities..............................
Other securities.............................................
To nonbank financial institutions:
Personal and sales finance cos., etc..............
Other...................................................................
Real estate..............................................................
To commercial banks:
Domestic.............................................................
Foreign...............................................................
Consumer instalment...........................................
Foreign governments, official institutions, etc.
All other loans.......................................................
Less : Loan reserve and unearned income on
loans.........................................................
23
24
25
26
27
28
29
30
31
32
33
Investments:
U.S. Treasury securities...........................................
B ills..........................................................................
Notes and bonds, by maturity:
1 to 5 years.........................................................
After 5 years......................................................
Other securities...........................................................
Obligations o f States and political
subdivisions:
Tax warrants, short-term notes, and b ills..
All other.............................................................
Other bonds, corporate stocks, and
securities:
Certificates o f participation2.........................
All other, including corporate stocks..........
34 Cash items in process o f collection............................
35
36 Currency and coin.........................................................
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
D eposits:
Demand deposits.........................................................
Individuals, partnerships, and corporations..
States and political subdivisions.......................
U.S. Govt................................................................
Domestic interbank:
Commercial.......................................................
Mutual savings.................................................
Foreign:
Governments, official institutions, etc.........
Commercial banks...........................................
Certified and officers’ checks..............................
Time and savings deposits3......................................
Savings4 . ................................................................
Time:
Individuals, partnerships, and corporations
States and political subdivisions...................
Domestic interbank.........................................
Foreign govts., official institutions, etc........
56 Federal funds purchased, etc. 5 ..................................
Borrowings from :
57
F. R. Banks................................................................
58
Others............................................ .............................
59 Other liabilities, etc.6 ...................................................
60 Total equity capital and subordinated
notes/debentures7 .................................................
1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits o f U.S. Govt, and o f foreign banks, which
are not shown separately.
4 For amounts o f these deposits by ownership categories, see Table 1.30.
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion o f reserves for loans.
7 Includes reserves for securities and contingency portion o f reserves
for loans.
Weekly Reporting Banks
1.30 LAR G E W EEK LY REPORTING COM M ERCIAL BANKS
M
illions of dollars, W
ednesday figures
A23
Balance Sheet Memoranda
1977
Account and bank group
Apr. 6
Apr. 13
Apr. 20
Apr. 27
May 4
May 11
May 18
May 25
1
2
3
Total loans (gross) and investments, adjusted1
Large banks...............................................................
New York City banks.........................................
Banks outside New York C ity..........................
409,374
89,228
320,146
405,654
88,089
317,565
407,015
90,209
316,806
403,925
88,204
315,721
406,227
89,258
316,969
407,498
89,993
317,505
408,575
91,301
317,274
407,618
90,071
317,547
4
5
6
Total loans (gross), adjusted
Large banks................................................................
New York City banks.........................................
Banks outside New York C ity..........................
297,540
68,701
228,839
294,684
68,329
226,355
293,186
67,860
225,326
292,749
67,327
225,422
294,601
67,320
227,281
295,205
67,641
227,564
296,737
68,507
228,230
296,294
67,898
228,396
111,728
25,038
86,690
112,819
24,915
87,904
110,673
24,701
85,972
109,800
24,715
85,085
106,486
23,946
82,540
106,798
23,860
82,938
105,798
23,019
82,779
106,573
23,524
83,049
60,805
20,307
40,498
59,947
19,843
40,104
59,344
19,684
39,660
59,245
19,606
39,639
59,647
20,359
39,288
60,909
20,961
39,948
61,547
21,299
40,248
62,362
21,368
40,994
39,804
13,859
25,945
39,234
13,562
25,672
38,774
13,441
25,333
38,645
13,381
25,264
38,925
13,642
25,283
39,644
13,978
25,666
39,942
14,016
25,926
40,717
14,128
26,589
21,001
6,448
14,553
20,713
6,281
14,432
20,570
6,243
14,327
20,600
6,225
14,375
20,722
6 ,7 n
14,005
21,265
6,983
14,282
21,605
7,283
14,322
21,645
7,240
14,405
25,337
5,213
20,124
25,472
5,170
20,302
25,392
5,115
20,277
25,493
5,070
20,423
25,549
5,160
20,389
25,653
5,020
20,633
25,792
5,108
20,684
26,029
5,132
20,897
14,021
3,879
10,142
14,041
3,827
10,214
13,911
3,790
10,121
13,945
3,785
10,160
14,098
3,915
10,183
14,033
3,777
10,256
14,101
3,814
10,287
14,162
3,794
10,368
11,316
1,334
9,982
11,431
1,343
10,088
11,481
1,325
10,156
11,548
1,285
10,263
11,451
1,245
10,206
11,620
1,243
10,377
11,691
1,294
10,397
11,867
1,338
10,529
87,870
9,873
77,997
87,458
9,848
77,610
86,976
9,802
77,174
86,984
9,815
77,169
87,272
9,798
77,474
87,406
9,820
77,586
87,265
9,783
77,482
87,101
9,752
77,349
5,029
560
4,469
5,024
561
4,463
5,000
564
4,436
5,030
568
4,462
5,032
576
4,456
5,039
577
4,462
5,071
569
4,502
5,093
570
4,523
Demand deposits, adjusted2
9
Banks outside New York C ity..........................
Large negotiable time CD’s included in time and
savings deposits3
Total:
12
13
14
15
16
17
18
Banks outside New York C ity..........................
Issued to IPC’s :
Large banks................................................................
New York City Banks........................................
Banks outside New York C ity..........................
Issued to others:
Large banks................................................................
New York City banks.........................................
Banks outside New York C ity..........................
All other large time deposits4
Total:
19 Large banks....................................................................
20
New York City banks.........................................
21
Banks outside New York C ity..........................
Issued to IPC’s :
22
Large banks...............................................................
23
New York City banks.........................................
24
Banks outside New York C ity..........................
Issued to others:
26
27
New York City banks.........................................
Banks outside New York C ity..........................
Savings deposits, by ownership category
Individuals and nonprofit organizations:
30
Banks outside New York C ity..........................
Partnerships and corporations for profit:5
31
Large banks................................................................
32
New York City banks.........................................
33
Banks outside New York C ity..........................
Domestic governmental units:
35
New York City banks.........................................
2,395
414
1,981
2,453
409
2,044
2,622
480
2,142
2,581
492
2,089
2,522
504
2,018
2,493
504
1,989
2,357
484
1,873
37
38
39
All other:6
Large banks................................................................
New York City banks.........................................
Banks outside New York C ity..........................
2,478
513
1,965
104
77
27
99
74
25
89
61
28
86
59
27
80
51
29
69
42
27
76
53
23
55
35
20
2,878
1,914
964
3,371
2,309
1,062
3,375
2,458
917
3,292
2,234
1,058
3,372
2,258
1,114
3,580
2,423
1,157
4,005
2,512
1,493
3,716
2,152
1,564
2,707
226
1,126
2,745
213
1,127
2,728
212
1,076
2,759
212
1,053
2,721
213
1,001
2,735
210
983
2,733
201
972
2,758
216
991
Gross liabilities of banks to their foreign
branches
40
Large banks................................................................
42
Banks outside New York C ity..........................
43
Loans sold outright to selected institutions by all
large banks7
Commercial and industrial.....................................
1 Exclusive o f loans and Federal funds transactions with domestic
commercial banks.
2 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process o f collection.
3 Certificates o f deposit (C D ’s) issued in denominations o f $100,000 or
more.
4 All other time deposits issued in denominations o f $100,000 or more
(not included in large negotiable C D ’s).
5 Other than commercial banks.
6 Domestic and foreign commercial banks, and official international
organizations.
7 To bank's own foreign branches, nonconsolidated nonbank af
filiates o f the bank, the bank’s holding company (if not a bank), and
nonconsolidated nonbank subsidiaries o f the holding company.
A24
1 .3 1
Domestic Financial Statistics □ June 1977
L A R G
E
W
E E K L Y
R E P O R T I N G
C O M
M
E R C I A L
B A N K S
C o m m e rc ia l a n d
In d u s tr ia l L o a n s
Millions o f dollars
Outstanding
Net change during—
1977
Industry group
Apr. 27
May 4
1976
May 11
May 18
May 25
Q4
1977
I
Mar.
Apr.
May
Total loans classified2
1 T otal.........................................................
Durable goods manufacturing:
2
Primary metals...................................
95,990
96,337
96,337
96,015
95,855
4,041
-9 1 6
616
196
-1 3 5
4
5
6
Transportation equipment...............
Other fabricated metal products...
Other durable goods.........................
2,413
4,783
2,381
1,907
3,454
2,422
4,787
2,363
1,924
3,497
2,432
4,844
2,371
1,913
3,515
2,422
4,792
2,382
1,911
3,492
2,406
4,748
2,416
1,889
3,439
138
41
-1 8 0
22
-2 4 9
377
108
74
181
90
40
136
107
116
156
-1 6 4
17
77
16
110
-7
-3 5
35
-1 8
-1 5
7
8
9
10
11
Nondurable goods manufacturing:
Food, liquor, and tobacco...............
Textiles, apparel, and leather.........
Petroleum refining.............................
Chemicals and rubber......................
Other nondurable goods..................
3,286
3,515
2,419
2,774
2,042
3,220
3,585
2,463
2,767
2,040
3,206
3,634
2,498
2,755
2,074
3,267
3,626
2,507
2,742
2,070
3,285
3,626
2,487
2,725
2,055
128
-5 0 4
120
18
14
-1 5 1
381
-3 0 5
131
147
-2 0
132
-1 8 6
113
84
-6 3
138
83
85
-2
-1
111
68
-4 9
13
12 Mining, including crude petroleum
and natural ga s..............................
Trade:
13
Commodity dealers...........................
14
Other wholesale..................................
15
R etail....................................................
16 Transportation.......................................
17 Communication......................................
18 Other public utilities.............................
19 Construction...........................................
20 Services.....................................................
7,599
7,587
7,691
7,701
7,769
361
94
-1 4
184
170
2,007
6,844
6,591
5,024
1,309
5,388
4,038
11,068
1,999
6,832
6,768
4,997
1,360
5,599
4,060
11,130
1,904
6,726
6,762
5,005
1,328
5,466
4,112
11,164
1,887
6,745
6,704
5,018
1,320
5,366
4,124
11,198
1,789
6,721
6,747
5,010
1,303
5,385
4,119
11,261
377
211
-2 6 4
81
-1 3 1
-1 0 1
-2 0 3
129
204
465
405
-1 4 0
-1 0
-6 1
64
398
28
352
304
-1 2
-2 4 6
-1 6 5
44
93
-1 3 0
119
84
-1 4 1
-3 9
-1 5 2
65
115
-2 1 8
-1 2 3
156
-1 4
-6
-3
81
193
7,512
3,957
7,514
3,783
7,711
3,682
7,651
3,704
7,652
3,674
576
3,285
-3 0 3
- 2 ,9 3 0
229
-4 8 8
-1 0 4
14
140
-2 8 3
5,679
5,640
5,544
5,386
5,349
172
-1 3 5
-1 8 7
-1 1 6
-3 3 0
248
241
-2 1 6
18
-9 4
—10
117,620
4,269
203
1,336
856
-2 7
21 All other domestic loans.....................
22 Bankers acceptances..............................
23 Foreign commercial and industrial
loans.................................................
M emo:
24 Commercial paper included in
total classified loans1...................
25 Total commercial and industrial
loans o f all large weekly
reporting banks..............................
258
117,647
117,998
117,752
1977
1976
Jan. 26
117,928
Feb. 23
Mar. 30
1976
Apr. 27
May 25
1977
IV
I
1977
Mar.
Apr.
May
“Term” loans classified3
26 T otal.........................................................
45,290
45,735
45,841
45,893
46,107
450
630
r99
52
214
27
28
29
30
31
Durable goods manufacturing:
Primary metals...................................
Machinery...........................................
Transportation equipment...............
Other fabricated metal products...
Other durable goods.........................
1,449
2,587
1,365
767
1,549
1,481
2,551
1,298
815
1,585
1,521
2,552
1,339
820
1,625
1,344
2,499
1,383
841
1,630
1,342
2,490
1,386
826
1,647
103
-9 0
-2 9
20
-1 1 1
204
-3 3
-1 3
44
40
1
41
5
40
-1 7 7
-5 3
44
21
5
-2
-9
3
-1 5
17
32
33
34
35
36
Nondurable goods manufacturing:
Food, liquor, and tobacco...............
Textiles, apparel, and leather.........
Petroleum refining.............................
Chemicals and rubber......................
Other nondurable g oods..................
1,449
1,033
1,925
1,456
975
1,447
1,036
1,901
1,522
987
1,412
1,071
1,770
1,547
1,032
1,374
1,099
1,805
1,589
1,101
1,438
1,163
1,824
1,615
1,172
-3 7
-4 6
64
-2 0
19
14
-2 7
-2 0 2
103
78
-3 5
35
-1 3 1
25
45
-3 8
28
35
42
69
64
64
19
26
71
5,793
5,761
5,856
6,015
6,043
341
173
95
159
28
227
1,483
2,087
3,717
810
3,762
1,638
5,212
2,383
219
1,478
2,212
3,830
829
3,869
1,683
5,216
2,352
199
1,479
2,268
3,773
779
3,907
1,661
5,111
2,433
199
1,489
2,274
3,695
802
3,796
1,720
5,188
2,408
202
1,519
2,353
3,604
793
3,796
1,722
5,283
2,465
-9
69
-8 9
3
-5 6
60
-6 2
31
181
-1
16
223
-1 6 4
-6 8
243
32
113
-1 6 7
56
-5 7
-5 0
38
-2 2
-1 0 5
74
10
6
-7 8
23
-1 1 1
59
77
-2 5
3,623
3,663
3,686
3,642
3,424
108
62
23
-4 4
37 Mining, including crude petroleum
and natural gas..............................
Trade:
38
Commodity dealers...........................
39
Other wholesale.................................
40
R etail...................................................
42
43
44
45
46
47
Communication......................................
Other public utilities.............................
Construction...........................................
Services.....................................................
All other domestic loans......................
Foreign commercial and industrial
loans.................................................
1 Reported for the last Wednesday o f each month.
2 Includes “term” loans, shown below.
3 Outstanding loans with an original maturity o f more than 1 year and
-2 0
1
3
30
79
-9 1
-9
2
95
57
-2 1 8
all outstanding loans granted under a formal agreement—revolving credit
or standby—on which the original maturity o f the commitment was in
excess o f 1 year.
Deposits and Commercial Paper
1 .3 2
G R O S S
D E M
A N D
D E P O S I T S
o f In d iv id u a ls , P a rtn e rs h ip s , a n d
A25
C o r p o r a tio n s
Billions o f dollars, estimated daily-average balances
All commercial banks
1975
Type o f holder
1972
Dec.
1973
Dec.
1974
Dec.
1976
1977
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
1 All holders, IP C ..........................................................
208.0
220.1
225.0
227.0
236.9
227.9
234.2
236.1
250.1
242.3
2 Financial business.......................................................
18.9
109.9
65.4
1.5
12,3
19.1
116.2
70.1
2 .4
12.4
19.0
118.8
73.3
2.3
11.7
19.0
118.7
76.5
2.2
10.6
20.1
125.1
78.0
2.4
11.3
19.9
116.9
77.2
2 .4
11.4
20.3
121.2
78.8
2 .5
11.4
19.7
122.6
80.0
2.3
11.5
22.3
130.2
82.6
2 .7
12.4
21.6
125.1
81.6
2 .4
11.6
All weekly reporting banks
1973
Dec.
1974
Dec.
1977
1976
1975
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
7 All holders, IP C ..........................................................
118.1
119.7
124.4
123.8
124.3
128.5
127.4
123.0
124.7
127.5
8 Financial business.......................................................
14.9
66.2
28.0
2 .2
6.8
14.8
66.9
2 9.0
2 .2
6.8
15.6
69.9
29.9
2.3
6.6
16.8
68.4
29.6
2 .4
6.6
16.2
68.7
30.4
2.5
6.6
17.5
69.7
31.7
2 .6
7.1
16.7
69.5
32.0
2.2
7.1
15.6
67.4
31.1
2 .4
6.5
16.7
67.8
31.5
2 .2
6.5
16.7
68.5
33.5
2.3
6.6
12 Other..............................................................................
N o t e . — Figures include cash items in process o f collection. Estimates o f
gross deposits are based on reports supplied by a sample o f commercial
1 .3 3
C O M
M
E R C I A L
P A P E R
A N D
B A N K E R S
banks. Types o f depositors in each category are described in the June 1971
B u l l e t i n , p. 466.
A C C E P T A N C E S
O U T S T A N D I N G
Millions o f dollars, end o f period
1976
Instrument
1974
Dec.
1975
Dec.
1977
1976
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Commercial paper
2
3
4
5
Financial companies:1
Dealer-placed paper:2
T otal......................................................................
Bank-related.......................................................
Directly-placed paper:3
T otal......................................................................
Bank-related.........................................................
49,144
47,690
52,041
51,370
53,116
52,041
53,905
'54,432
54,671
56,333
4,611
1,814
6,239
1,762
7,294
1,900
6,674
1,703
7,113
1,825
7,294
1,900
7,347
1,895
7,291
1,929
7,271
1,839
7,325
1,778
31,839
6,518
31,276
6,892
32,416
5,959
31,880
5,864
32,691
5,944
32,416
5,959
32,753
5,637
32,392
5,502
33,709
6,126
34,288
5,703
12,694
1 A11 issuers......................................................................
10,175
12,331
12,816
13,312
12,331
13,805
14,749
13,691
14,720
Dollar acceptances
18,484
18,727
22,523
20,312
20,678
22,523
22,362
22,187
22,694
22,544
4,226
3,685
542
7,333
5,899
1,435
10,442
8,769
1,673
7,959
6,789
1,170
9,031
7,706
1,325
10,442
8,769
1,673
8,183
7,011
1,172
7,991
6,654
1,337
7,787
6,367
1,421
7,410
6,032
1,378
999
1,109
1,126
293
991
375
337
387
188
349
991
375
191
374
322
440
'280
435
881
394
Others........................................................................
12,150
9,975
13,447
11,629
11,111
10,715
13,615
13,434
'14,191
13,858
Based on:
14
Imports into United States..................................
15
Exports from United States.................................
16
All other....................................................................
4,023
4,067
10,394
3,726
4,001
11,000
4,992
4,818
12,713
4,737
4,715
10,860
4,667
4,628
11,383
4,992
4,818
12,713
4,992
5,137
12,233
5,138
5,074
11,974
4,983
5,222
12,489
5,050
5,264
12,230
7 T otal..............................................................................
Held bv:
Accepting banks.......................................................
Own bills..............................................................
Bills bought.........................................................
F.R. Banks:
11
Own account.......................................................
12
Foreign correspondents....................................
8
9
10
13
1 Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
2 Includes all financial company paper sold by dealers in the open
market.
3 As reported by financial companies that place their paper directly
with investors.
4 Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services.
A26
Domestic Financial Statistics □ June 1977
1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans
Per cent per annum
Effective date
1975—Feb.
Rate
3
10
18
24
1975—Oct.
Nov.
Dec.
1976—Jan.
OO
OO
9V4
9
Mar. 5
10
18
24
8%
8
7%
May 20
June 9
July 18
28
7%
7
m
Sept. 15
Rate
27
5
2
12
21
Month
7
7%
7
Dec. 13
6%
1977—May 13.
31.
6%
6%
6V4
evi
7.88
7.96
7.53
7.26
7.00
6.75
6.75
6.75
6.75
7.20
7.25
7.01
7.00
6.78
6.50
6.35
1977—Jan..
Feb..
Mar.
Apr.
May
7V
4
71
/4
7
6%
1
7
Aug. 2
Oct. 4
Nov. 1
Average rate
1975—Sept.
Oct..
Nov.
Dec..
1976—Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec..
m
June
7%
7%
7%
8
Aug. 12
1.35
Effective date
6.25
6.25
6.25
6.25
6.41
INTEREST RATES CHARGED BY BANKS on Business Loans
Per cent per annum
Size of loan (in thousands of dollars)
All sizes
10-99
1--9
Center
1976
Nov.
1976
Aug.
1976
Nov.
1976
Aug.
1976
Nov.
100-499
1976
Aug.
1976
Nov.
1976
Aug.
500-999
1976
Nov.
1976
Aug.
1,000 and over
1976
Nov.
1976
Aug.
Short-term rates
1 All 35 centers.....................
7.28
7.80
8.83
9.06
2
3
4
5
6
7
6.88
7.62
7.28
7.51
7.33
7.52
7.48
8.18
7.70
7.95
7.75
8.15
8.56
9.22
8.45
9.13
8.51
8.69
8.85
9.41
8.65
9.33
8.83
9.26
New York City...............
7 Other Northeast...........
8 North Central..............
7 Southeast.....................
8 Southwest....................
4 West Coast..................
8.18
7.94
8.34
8.12
8.48
7.82
8.46
8.58
7.66
8.40
8.84
8.50
8.76
8.24
8.79
7.43
7.88
7.69
7.71
7.39
7.88
7.99
7.91
8.25
7.85
8.00
7.80
8.28
7.31
7.24
7.49
7.36
7.04
7.21
7.44
7.84
8.02
7.70
7.67
8.50
8.16
8.20
7.95
7.41
6.97
7.75
7.88
6.77
7.24
7.45
7.80
7.56
8.36
7.74
7.77
8.16
7.71
7.85
7.61
8.06
7.02
6.74
7.34
7.03
7.07
7.12
7.34
7.61
7.12
7.19
6.75
7.39
6.83
7.39
7.01
7.88
8.19
7.47
7.90
7.13
7.80
7.68
7.36
7.98
7.55
7.54
7.55
8.05
Revolving credit rates
8 All 35 centers.....................
9 New York City...............
10 7 Other Northeast...........
11 8 North Central..............
12 7 Southeast.....................
13 8 Southwest....................
14 4 West Coast..................
7.19
7.18
6.92
7.54
7.05
7.45
7.11
7.87
8.14
7.59
7.96
7.48
7.81
7.73
8.37
7.23
8.15
8.52
8.31
8.19
8.77
8.70
7.25
8.00
8.94
8.75
8.74
9.10
8.14
7.86
8.20
8.95
8.09
7.96
7.85
8.33
8.26
8.22
9.03
8.40
8.09
8.08
7.60
7.21
7.26
8.05
7.56
7.74
7.58
7.47
7.91
Long-term rates
15 All 35 centers.....................
7.48
8.45
9.39
New York C ity..............
7 Other Northeast...........
8 North Central..............
7 Southeast.....................
8 Southwest....................
4 West Coast..................
7.36
6.64
7.66
7.59
7.73
8.04
8.52
8.62
8.05
8.88
8.42
8.67
7.19
9.22
9.20
9.87
10.54
8.70
16
17
18
19
20
21
9.61
8.88
9.02
8.14
8.55
8.13
8.60
7.24
8.40
9.40
8.83
9.60
10.85
9.28
8.55
8.84
9.03
9.35
9.05
8.54
8.27
9.43
9.07
9.08
9.04
8.58
7.93
7.95
8.35
7.93
8.28
8.31
8.05
8.93
8.26
9.88
8.23
8.81
8.06
7.92
8.99
4.00
8.44
7.78
8.44
7.50
8.36
8.18
8.69
10.00
7.26
5.73
7.32
7.79
7.20
8.03
8.56
8.70
7.92
8.06
8.30
8.46
Note.—Weighted-average rates based on sample of loans made during
first 7 days of the survey month.
Securities Markets
A ll
1.36 INTEREST RATES Money and Capital Markets
Averages, per cent per annum
Instrument
1974
1975
1977
1976
Feb.
Mar.
1977, week ending—
Apr.
May Apr. 30 May 7 May 14 May 21 May 28
Money market rates
Prime commercial paper 1
1 90- to 119-day..................................... 10.05
2 4- to 6-month...................................... 9.87
3 Finance company paper, directly placed,
8.62
3- to 6- month 2..............................
4 Prime bankers acceptances, 90-day 3........ 9.92
5 Federal funds 4....................................... 10.51
6.26
6.33
5.24
5.35
4.76
4.82
6.16
6.30
5.22
5.19
4.75
4.83
5.82
5.05
4.68
10.27
6.43
8 Euro-dollar deposits, 3-month 7............... 10.96
6.97
5.26
5.15
5.57
5.80
6.11
6.30
5.838
6.122
Large negotiable certificates of deposit
6 3-month, secondary market 5...............
7 Lmnnth nrimnrv marlfftt 6...... ...........
U.S. Govt, securities
Bills: 3
Market yields:
3-month....................................... 7.84
9
6-month....................................... 7.95
10
1-year.......................................... 7.71
11
Rates on new issue:
7.886
12
7.926
13
Notes and bonds maturing in—9
9 to 12 months................................ 8.25
14
3 to 5 years...................... ............... 7.81
15
Constant maturities:10
8.18
1-yea r
16
2-yea r
17
3-year.............................................. 7.82
18
5-year.............................................. 7.80
19
4.75
4.87
4.75
4.87
5.26
5.35
4.75
4.86
4.90
4.98
5.20
5.25
5.40
5.53
5.50
5.60
4.77
4.80
4.69
4.81
4.78
4.73
5.13
5.34
4.75
4.82
4.78
5.06
4.82
5.15
5.30
5.43
5.34
5.38
5.52
5.35
5.00
5.33
5.31
4.65
4.69
5.08
4.83
4.74
4.81
4.72
5.20
5.13
5.35
5.24
5.16
5.70
4.94
4.80
5.34
5.21
5.09
5.13
4.79
4.74
5.14
5.66
5.81
5.58
5.38
5.98
4.98
5.26
5.52
4.989
5.266
4.67
4.90
5.16
4.662
4.896
4.60
4.88
5.19
4.613
4.883
4.54
4.80
5.10
4.540
4.790
4.96
5.20
5.43
4.942
5.193
4.51
4.84
5.18
4.518
4.838
4.75
5.01
5.28
4.807
5.052
4.96
5.23
5.46
4.822
5.131
5.05
5.30
5.52
4.996
5.234
5.06
5.25
5.45
5.143
5.353
6.70
7.55
5.84
6.94
5.50
6.69
5.50
6.73
5.37
6.58
5.81
6.76
5.41
6.61
5.59
6.72
5.83
6.78
5.89
6.79
5.91
6.77
6.76
7.49
7.77
5.88
6.31
6.77
7.18
5.47
6.09
6.44
6.83
5.50
6.09
6.47
6.93
5.44
r5.96
r6.31
6.79
5.84
6.25
6.55
6.94
5.54
6.04
r6.36
6.80
5.67
6.16
6.49
6.93
5.87
6.29
6.58
6.98
5.93
6.31
6.57
6.95
5.91
6.27
6.56
6.91
5.45
Capital market rates
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Government notes and bonds
U.S. Treasury:
Constant maturities:10
7-year..........................................
10-year.........................................
20-year.........................................
30-year.........................................
Long-term 9.....................................
State and local:11
Moody’s series:
Aaa.............................................
Baa..............................................
Bond Buyer series 12........................
Corporate bonds
Seasoned issues 13
All industries...................................
By rating groups:
Aaa.............................................
Aa...............................................
A.................................................
Baa..............................................
Aaa utility bonds:14
New issue........................................
Recently offered issues......................
Common stocks
Dividend/price ratio:
Preferred stocks...............................
35
Common stocks...............................
36
7.71
7.56
8.05
6.99
7.90
7.99
8.19
7.42
7.61
7.86
7.16
7.39
7.64
6.98
6.78
5.89
6.53
6.17
6.42
7.62
7.05
9.03
8.57
8.84
9.20
9.50
7.15
7.20
7.46
7.73
7.80
7.20
7.11
7.37
7.67
7.73
7.14
7.26
7.46
7.74
7.80
7.17
7.14
7.40
7.69
7.76
7.15
7.27
7.46
7.74
7.81
7.20
7.31
7.50
7.78
7.85
7.20
7.25
7.46
7.74
7 79
7.17
7.21
7.41
7.70
7 76
7.12
5.66
7.49
6.64
5.17
6.50
5.89
5.21
6.41
5.89
5.18
6.27
5.73
5.23
6.23
5.75
5.17
6.25
5.68
5.23
6.30
5.76
5.25
6.30
5.82
5.20
6.15
5.70
5.25
6.15
5.71
9.57
8.83
9.17
9.65
10.61
9.01
8.43
8.75
9.09
9.75
8.48
8.04
8.26
8.49
9.12
8.51
8.49
8.04
8.28
8.55
9.07
8.47
8.05
8.28
8.55
9.01
8.46
8.01
8.27
8.53
9.03
8.47
8.04
8.27
8.55
9.01
8.48
8.07
8.27
8.55
9.01
8.48
8.10
8.28
8.55
9.12
8.06
8.28
8.56
9.00
8.47
8.04
8.29
8.56
9.00
9.33
9.34
9.40
9.41
8.48
8.49
8.22
8.19
8.25
8.29
8.26
8.22
8.33
8.31
8.31
8.25
8.33
8 32
8.32
8 34
8.31
8.28
8.23
4.47
8.38
4.31
7.97
3.77
7.55
4.21
7.56
4.37
4.47
7.60
4.39
7.63
4.36
7.65*
4.33
7.58
4.40
7.67
4.34
7.59
4.50
7.66
1Averages of the most representative daily offering rate quoted by
dealers.
2 Averages of the most representative daily offering rates published by
finance companies for varying maturities in this range.
3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of
the range of daily dealer closing rates offered for domestic issues; prior
data are averages of the most representative daily offering rate quoted by
dealers.
4 Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
5 Averages of the daily midpoints as determined from the range of
offering rates in the secondary market.
6 Posted rates, which are the annual interest rates most often quoted
on new offerings of negotiable CD’s in denominations of $100,000 or
more. Rates prior to 1976 not available. Weekly figures are for Wednes
day dates.
7 Averages of daily quotations for the week ending Wednesday.
8 Except for new bill issues, yields are computed from daily closing
bid prices. Yields for all bills are quoted on a bank-discount basis.
9 Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. “Long-term” includes
all bonds neither due nor callable in less than 10 years.
Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
11 General obligations only, based on figures for Thursday, from
Moody’s Investors Service.
12 Twenty issues of mixed quality.
13 Averages of daily figures from Moody’s Investors Service.
14 Compilation of the Board of Governors of the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields are
based on quotations on date of offering; those on recently offered issues
(included only for first 4 weeks after termination of underwriter price
restrictions), on Friday close-of-business quotations.
A28
Domestic Financial Statistics □ June 1977
1.37 STOCK MARKET Selected Statistics
1976
Indicator
1974
1975
1976
1977
Nov. | Dec.
Jan.
Feb.
Mar.
Apr.
May
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
2 Industrial....................................................
3 Transportation............................................
4 Utility.........................................................
5 Finance.......................................................
6 Standard &Poor’s Corporation (1941-43 = 10)1..
7 American Stock Exchange (Aug. 31,1973 = 100).
8
9
43.84
48.08
31.89
29.82
49.67
45.73
51.88
30.73
31.45
46.62
82.85
79.97
85.17
Volume of trading (thousands of shares)2
New York Stock Exchange........................... 13,883
American Stock Exchange............................ 1,908
83.15
54.45
60.44
39.57
36.97
52.94
102.01
101.63
54.17
59.45
39.28
38.85
53.25
101.19
99.20
18,568
2,150
21,189
2,565
19,370
2,211
56.34
61.54
41.77
40.61
57.45
104.66
56.28
61.26
41.93
41.13
57.86
54.93
59.65
40.59
40.86
55.65
54.67
59.56
40.52
40.18
54.84
53.92
58.47
41.51
40.24
54.30
53,96
58.13
43.25
41.14
54.80
103.81
111.04
100.96
112.17
100.57
104.06
111.77
99.05
111.70
98.76
113.72
23,621
3,095
23,562
3,268
19,310
2,830
17,814
2,580
17,380
2,500
18,700
2,440
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers
and banks3............................................
11 Brokers, total...............................................
12
Margin stock4..........................................
13
Convertible bonds.....................................
14
Subscription issues...................................
15 Banks, total.................................................
16
Margin stocks..........................................
17
Convertible bonds.....................................
18
Subscription issues....................................
19 Unregulated nonmargin stock credit at banks5...
Memo: Free credit balances at brokers6
20 Margin-account...........................................
21 Cash-account...............................................
4,836
3,840
137
3
6,500
5,540
5,390
147
3
815
30
11
2,064
909
36
15
2,281
410
1,425
475
1,525
3,980
856
960
8,995
7,960
204
2
8,640
7,790
7,610
178
2
786
29
14
3,684
801
35
14
3,737
585
1,855
615
1,740
8,166
829
850
8,995
9,289
9,509
9,687
9,887
7,960
204
2
829
786
8,270
196
3
820
776
27
17
8,480
197
2
830
r785
27
17
8,690
199
2
8,880
196
2
8,166
r29
14
3,684
585
1,855
8,469
8,679
8,891
796
3,693
3,751
754
25
17
3,720
645
1,930
605
1,815
605
1,720
9,078
809
766
25
18
2,878
616
1,717
Margin-account debt at brokers (percentage distribution, end of period)
22 Total...................................
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
By equity class (in per cent):7
Under 40..........................
40-49................................
50-59...............................
60-69...............................
70-79...............................
80 or more.......................
45.4
23.0
13.9
8.8
4.6
4.3
24.0
28.8
22.3
11.6
6.9
5.3
12.0
23.0
35.0
15.0
8.7
6.0
14.0
32.0
27.0
13.0
8.0
6.0
12.0
23.0
35.0
15.0
8.7
6.0
15.0
'28.8
'28.0
13.0
'8.3
'5.8
17.6
'34.9
'23.4
'11.3
7.3
'5.5
'16.5
'36.8
'23.2
11.6
6.7
5.3
16.5
34.1
25.4
11.8
6.8
5.4
23
24
25
26
27
28
Special miscellaneous-account balances at brokers (end of period)
29 Total balances (millions of dollars)8...
Distribution by equity status (per cent)
30 Net credit status.............................
Debit status, equity of—
31
60 per cent or more.....................
32
Less than 60 per cent...................
7,010
41.1
32.4
26.5
7,290
43.8
40.8
15.4
1Effective July 1976 includes a new financial group, banks and in
surance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility (formerly 60), and 40 financial.
2 Based on trading for a 5^-hour day.
3 Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended by brokers is end-of-month data for member firms of
the New York Stock Exchange; June data for banks are universe totals;
all other data for banks are estimates for all commercial banks based on
data from a sample of reporting banks.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
4 A distribution of this total by equity class is shown below.
8,776
41.3
47.8
10.9
8,576
41.1
46.8
12.1
8,776
41.3
47.8
10.9
'9,070
42.3
'46.6
'11.1
'9,170
42.9
45.5
11.6
'9,350
42.3
46.0
11.7
9,300
41.4
46.3
12.4
5 Nonmargin stocks are those not listed on a national securities ex
change and not included on the Federal Reserve System’s list of over-thecounter margin stocks. At banks, loans to purchase or carry nonmargin
stocks are unregulated; at brokers, such stocks have no loan value.
6 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
7 Each customer’s equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
8 Balances that may be used by customers as the margin deposit re
quired 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.
N ote.—For table on “ Margin Requirements” see p. A-10, Table 1.161.
Thrift Institutions
A29
1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities
Millions o f dollars, end o f period
1974
1975
1976
1976
Aug.
Account
Sept.
Oct.
1977
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Savings and loan associations
1 Assets................................ 295,545
2 Mortgages.......................... 249,301
3 Cash and investment
23,251
4 Other................................. 22,993
5 Liabilities and net worth....... 295,545
6 Savings capital.................... 242,974
7 Borrowed money................. 24,780
8 FHLBB........................... 21,508
9 Other.............................. 3,272
10 Loans in process................. 3,244
11 Other................................. 6,105
12 Net worth2......................... 18,442
13 Memo: Mortgage loan com
mitments outstanding3..
7,454
338,233 391,999 376,188 379,747 385,013
278,590 323,130 307,766 311,847 315,742
30,853 35,660 35,815 35,209 36,442
28,790 33,209 32,607 32,691 32,829
338,233 391,999 376,188 379,747 385,013
285,743 336,030 318,227 323,800 327,252
20,634
19,087
18,856
19,083
15,832
3,251
6,688
8,779
18,810
17,524
3,110
5,128
6,949
19,779
15,708
3,379
6,836
8,015
22,031
15,495
3,361
6,628
11,197
21,280
21,398
15,636
3,174
6,735
10,531
21,685
10,673
14,828
15,773
15,449
15,319
389,173 391,999 398,299 403,591
319,273 323,130 326,056 329,086
36,605 35,660 38,252 39,505
33,295 33,209 33,991 35,000
389,173 391,999 398,299 403,591
329,833 336,030 341,211 344,616
18,715 19,087 18,455 18,256
15,571 15,708 15,029 14,661
3,144
3,379
3,426
3,595
6,753
6,836
6,718
6,783
11,918
8,015
9,667 11,418
21,954 22,031 22,248 22,518
15,467
14,828
15,079
16,796
409,357 414,276
333,703 338,922
39,656 38,975
35,998 35,379
409,357 414,276
352,194 354,273
18,283
18,841
14,325
3,958
7,351
8,833
22,696
14,788
4,053
7,893
10,292
22,977
19,304
21,243
Mutual savings banks
14 Assets................................
Loans:
15 Mortgage........................
16 Other..............................
Securities:
17 U.S. Govt........................
18 State and local government.
19 Corporate and other4......
20 Cash..................................
21 Other assets........................
22 Liabilities...........................
23 Deposits.............................
24 Regular: 5........................
25
Ordinary savings..........
26
Time and other............
27 Other..............................
28 Other liabilities...................
29 General reserve accounts....
30 Memo: Mortgage loan com
mitments outstanding 6..
109,550 121,056 134,702 130,571 131,413 132,455 133,361 134,812 135,906 137,307 138,901
74,891
3,812
77,221
4,023
81,554
5,192
79,781
5,210
80,145
5,478
80,543
5,549
80,884
5,801
5,911
5,733
5,851
5,796
2,555
4,740
5,836
2,359
2,429
2.420 2,339
930
1,545
2,466
22,550 27,992 33,676 32,319 32,432 32,793 33,074
1,552
1,581
2,167 2,330 2,374
1,695
1,668
3,574
3,576
3,567
3,649
2,645
3,205
3,632
109,550 121,056 134,702 130,571 131,413 132,455 133,361
81,630 81,826 81,982 82,273
5,183
5,956
6,254
6,389
5,840
5,917
6,096
6,360
2,417
2,295
2,366
2,431
33,793 34,475 35,088 35,928
2,355
1,800
1,835
1,823
3,593
3,637
3,686
3,668
134,812 135,906 137,307 138,901
98,701 109,873 122,802 118,225 119,590 120,360 120,971 122,877 123,864 124,728 126,687
98,221 109,291 121,874 117,203 118,510 119,346 120,125 121,961 122,874 123,721 125,624
64,286 69,653 74,483 72,872 73,484 73,610 73,857 74,535 74,621 75,038 76,260
33,935 39,639 47,391 44,331 45,027 45,736 46,268 47,426 48,253 48,683 49,364
1,022
582
1,014
928
1,080
480
846
916
989
1,007
1,063
3,490
2,853
2,898
3,140
2,888
2,755
3,376 2,884
2,940
3,368
2,939
8,855
8,428 9,047
8,925 8,955 9,015
7,961
9,052
9,102 9,211
9,275
2,040
1,803
2,439
2,459
2,671
2,548
2,553
2,439
2,584
2,840
3,161
Life insurance companies
31 Assets...................
Securities:
32 Government.......
33
United States7
34
State and local
35
Foreign 8........
36 Business............
37
Bonds............
38
Stocks............
39 Mortgages............
40 Real estate............
41 Policy loans..........
42 Other assets..........
263,349 289,304 320,555 309,295 312,044 313,960 316,505 320,555 322,489 324,164 326,453
10,900
13,758
17,270
16,902
16,862
17,329
17,565
17,270
17,549
17,817
18,059
5,922' 5,150 5,448
5,156
5,291
5,156
5,606
5,382
5,283
5,551
5,324
5,364
5,446
5,467
5,551
5,614
5,666
5,626
6,286
6,563
6,348
6,435
6,492
6,563
6.644
6,769
7,150
119,637 135,317 157,625 150,303 152,125 153,298 154,502 157,625 159,464 160,683 161,319
97,717 107,256 123,149 117,806 118,706 120,358 121,659 123,149 125,892 127,542 128,584
21,920 28,061 34,476 32,497 33,419 32,940 32,843 34,476 33,572 33,141 32,735
86,234 89,167 91,581 89,891 90,217 90,323 90,808 91,581 91,615 91,646 91,874
9,621 10,526 10,146 10,175 10,285 10,310 10,526 10,550 10,632 10,717
8,331
22,862 24,467 25,849 25,383 25,505 25,607 25,710 25,849 25,921 26,051 26,221
15,385 16,971 17,704 16,670 17,160 17,118 17,610 17,704 17,390 17,335 18,263
3,372
3,667
3,861
4,736
4,508
4,514
Credit unions
43 Total assets/liabilities and
capital......................
44 Federal........................
45 State...........................
46 Loans outstanding.
47 Federal............
48 State...............
49 Savings.............................
50 Federal (shares).............
51 State (shares and deposits)
31,948
16,715
15,233
38,037
20,209
17,828
44,897
24,164
20,733
42,266
22,698
19,658
43,079
23,198
19,881
43,415
23,283
20,132
44,089
23,668
20,421
44,835
24,164
20,671
44,906
24,188
20,718
45,798
24,756
21,042
47,111
25,596
21,515
47,348
25,697
21,651
24,432
28,169
34,033
32,300
33,093
33,275
33,732
34,293
34,188
34,549
35,411
36,019
27,518
33,013
39,264
36,752
37,436
37,854
38,281
38,968
39,344
39,981
41,161
12,730
11,702
14,370
13,148
For notes see bottom o f page A30.
14,869
13,300
17,530
15,483
18,022
16,011
21,149
18,115
17,065
15,235
19,783
16,969
17,458
15,635
20,167
17,269
17,522
15,753
20,358
17,496
17,786
15,946
20,597
17,684
18,202
16,091
20,980
17,988
18,081
16,107
21,165
18,179
18,275
16,274
21,559
18,442
18,776
16,635
22,346
18,815
19,050
16,969
41,394
22,524
18,870
A30
Domestic Financial Statistics □ June 1977
1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions o f dollars
Fiscal year
Type of account or operation
1
2
3
4
5
U.S. Budget
Receipts.......................................
Outlays 1,2..................................
Surplus, or deficit (— ...............
)
Trust funds..............................
Federal funds 3.........................
6
7
Off-budget entities surplus, or
deficit (—
)
Federal Financing Bank outlays...
Other i,4.....................................
8
9
10
11
U.S. Budget plus off-budget, in
cluding Federal Financing Bank
Surplus, or deficit ( — ...................
)
Financed by:
Borrowing from the public 2. . ..
Cash and monetary assets (de
crease, or increase ( —
)).......
Other5. . . . ..............................
Memo:
12 Treasury operating balance (level, end
of period)..................................
13 F.R. Banks..................................
14 Tax and loan accounts.................
15 Other demand accounts 6..............
1975
1976
1975
1976
1977
H2
HI
H2
Feb.
Mar.
Apr.
25,171
34,646
40,016
35,547
-1,441
-8,033
647
3,822
-66,461
-12,973
-1,952
-11,021
139,455
185,097
-45,642
-3,125
-42,517
160,552
181,369
-20,816
5,503
-26,320
-35,758
-6,554
-9,475
-6,389
-1,652
-5,915
-1,355
-2,575
793
-2,693
-236
-3,222
-1,119
-5,176
3,809
-460
9
-843
-83
581
-114
-53,149
-73,731
-14,755
-48,571
-25,158
-37,125
-7,005
-10,402
4,936
50,867
-320
2,602
82,922
18,027
-1,396
-2,899
-373
33,561
-7,909
-495
35,457
2,153
-485
9,118
-1,194
-920
5,351
-7,796
49,361
-2,046
1,256
5,610
-559
1,206
-9,422
3,280
7,591
5,773
1,475
343
14,836
11,975
2,854
7
17,418
13,299
4,119
8,452
7,286
1,159
7
14,836
11,975
2,854
7
11,670
10,393
1,277
14,599
12,179
2,420
r9,023
r7 ,149
rl ,874
17,763
13,628
4,135
7,419
-52,526
2,409
-68,870
81,773
94,746
Calendar year
-45,108
280,997
326,105
300,005
366,466
Transition
quarter
(JulySept.
1976)
157,961
193,719
-4,621
-31,137
24,327
30,880
1,099
-7,654
4,469
1Outlay totals reflect the reclassification of the Export-Import Bank
from off-budget status to unified budget status.
2 Export-Import Bank certificates of beneficial interest (effective July
1, 1975) and loans to Pefco are treated as debt rather than asset sales.
3 Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
4 Includes Pension Benefit Guaranty Corp., Postal Service Fund, Rural
Electrification and Telephone Revolving Fund, Rural Telephone Bank,
and Housing for the Elderly or Handicapped Fund.
5 Includes: Public debt accrued interest payable to the public; deposit
funds; miscellaneous liability (including checks outstanding) and asset
accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment.
6 Excludes the gold balance but includes deposits in certain commercial
depositories that have been converted from a time deposit to a demand
deposit basis to permit greater flexibility in Treasury cash management.
Source.—“Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government,” Treasury Bulletin, and U.S. Budget, Fiscal Year
NOTES TO TABLE 1.38
1 Stock of the Federal Home Loan Bank Board (FHLBB) is included
in “other assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3Excludes figures for loans in process, which are shown as a liability.
4 Includes securities of foreign governments and international organiza
tions and nonguaranteed issues of U.S. Govt, agencies.
5 Excludes checking, club, and school accounts.
6 Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Assn. of the State of
New York.
7 Direct and guaranteed obligations. Excludes Federal agency issues
not guaranteed, which are shown in this table under “business” securities.
8Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
Note.—Savings and loan associations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of Federally insured associations and annual reports of other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States. Data are re
ported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the Institute of Life Insurance
for all life insurance companies in the United States. Annual figures are
annual-statement asset values, with bonds carried on an amortized basis
and stocks at year-end market value. Adjustments for interest due and
accrued and for differences between market and book values are not
made on each item separately but are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration
for a group of Federal and State-chartered credit unions that account for
about 30 per cent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.
1978.
Federal Finance
A31
1.40 U.S. BUDGET RECEIPTS AND OUTLAYS
Millions o f dollars
Fiscal year
Source or type
1975
1976
Transition
quarter
(JulySept.
1976)
Calendar year
1975
H2
1976
HI
1977
H2
Feb.
Mar.
Apr.
24,327
25,171
40,016
6,131
18,660
Receipts
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
A sources.....................................
11
280,997
300,005
81,773
139,455
160,552
157,961
Individual income taxes, net............
122,386
131,603
38,801
65,835
65,767
75,094
Withheld....................................
Presidential Election Campaign
Fund...................................
Nonwithheld..............................
Refunds.....................................
Corporation income taxes:
Gross receipts............... ............
Refunds.....................................
Social insurance taxes and contribu
tions, net.................................
Payroll employment taxes and
contributions 1.....................
Self-employment taxes and
contributions 1....................
Unemployment insurance............
Other net receipts 2....................
Excise taxes...................................
Customs........................................
Estate and gift...............................
Miscellaneous receipts 3.................
122,071
32
34,296
34,013
45,747
5,125
123,408
34
35,528
27,367
46,783
5,374
86,441
71,789
3,417
6,771
4,466
16,551
3,676
4,611
6,711
16,963
4,074
5,216
8,026
32,949
1
6,809
958
59,549
8,515 .
9,808
1,348
18,810
2,735
63,859
33
27,879
26,004
27,973
2,639
92,714
25,760
40,886
51,828
47,596
10,764
7,412
76,391
3,518
8,054
4,752
21,534
269
2,698
1,259
4,473
1,212
1,455
1,612
35,443
40,947
3,250
5,193
2,438
AO,All
6,569
6,670
286
4,379
2,504
9,110
247
997
410
290
126
428
2,328
1,296
409
8,204
2,147
2,643
4,630
8,910
2,361
2,943
3,236
1,294
347
1,890
568
1,283
466
625
534
1,392
393
376
517
193,719
45,002
3,028
2,377
7,206
2,019
30,880
8,131
381
333
895
350
-323
34,646
8,572
521
35,547
7,976
548
403
1,180
564
356
1,077
737
1,265
496
1,645
2,674
13,045
1,611
292
284
31
2,522
-459
1,316
579
1,604
3,241
11,632
1,684
305
113
2,103
2,751
-475
7,649
1,362
268
2,861
2,314
8,761
1,927
2,573
3,397
68,023
1
8,426
1,356
20,706
2,886
11,398
8
1,154
4,045
12,961
10
2,719
9,559
1,311
363
9,131
412
8,461
488
10,703
11,797
7
14,581
7,725
Outlays
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
All types 4 ...................................
National defense..........................
International affairs 4 ...................
General science, space, and
technology.............................
Natural resources, environment,
and energy............................
Agriculture..................................
Commerce and transportation.......
Community and regional
development..........................
Education, training, employment,
and social services.................
Health.........................................
Income security............................
Veterans benefits and services. . . . .
Law enforcement and justice........
General government.....................
Revenue sharing and general
purpose fiscal assistance.........
Interest5.......................................
Undistributed offsetting receipts 5,
326,105
86,585
5,862
3,989
9,537
1,660
16,010
4,431
15,248
27,647
108,605
16,597
2,942
3,089
7,005
30,974
-14,075
366,466
89,996
5,067
4,370
11,282
2,502
94,746
22,518
1,997
1,161
3,324
584
185,097
46,214
2,574
2,415
5,018
1,489
181,369
44,052
2,668
17,248
5,300
18,167
33,448
127,406
18,432
3,320
2,927
7,119
34,589
-14,704
4,700
1,530
5,013
8,720
32,796
3,962
859
878
2,024
7,246
-2,567
11,496
5,766
2,411
1 Old-age, disability and hospital insurance, and Railroad Retirement
accounts.
2 Supplementary medical insurance premiums, Federal employee re
tirement contributions and Civil Service retirement and disability fund.
3 Deposits of earnings by F.R. Banks and other miscellaneous receipts.
4 Outlay totals reflect the reclassification of the Export-Import Bank
from off-budget status to unified budget status. Export-Import Bank
certificates of beneficial interest (effective July 1, 1975) and loans to Pefco
are treated as debt rather than asset sales.
2,548
8,423
16,681
61,655
9,010
1,589
1,929
3,528
15,180
-4,652
1,708
6,900
417
9,116
17,008
65,336
9,450
1,784
870
3,664
18,560
-8,340
9,643
3,192
9,083
19,329
65,456
8,542
1,839
1,734
4,729
18,409
-7,869
480
1,585
3,064
11,719
1,606
244
285
44
2,674
-588
5 Effective September 1976, “Interest” and “Undistributed Offsetting
Receipts” reflect the accounting conversion for the interest on special
issues for U.S. Govt, accounts from an accrual basis to a cash basis.
6 Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. Govt, contributions for em
ployee retirement.
A32
Domestic Financial Statistics □ June 1977
1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions o f dollars
1974
1973
1975
1976
1977
Item
Dec. 31
June 30
Dec. 31
June 30
Dec. 31
June 30
Sept. 30
Dec. 31
Mar. 31
1 Federal debt outstanding.......
480.7
486.2
504.0
544.1
587.6
631.9
2646.4
665.5
680.1
2 Public debt securities............
3 Held by public.................
4 Held by agencies..............
5 Agency securities..................
6 Held by public.................
7 Held by agencies..............
469.1
474.2
492,
533.7
387.9
145.3
576.6
437.3
139.3
620.4
470.8
149.6
634.7
488.6
146.1
653.5
669.2
11.6
12.0
11,
9.
10.9
9.0
1.9
10.9
8.9
2.0
11.5
9.5
2.0
11.6
12.0
10.9
9.1
8 Debt subject to statutory limit
9 Public debt securities............
10 Other debt1.........................
11 Memo: Statutory debt limit..
470.8
468.4
2.4
493.0
490.
2.
534.2
577.8
532.6
1.6
577.0
576.0
1.7
595.0
621.6
619.8
1.7
636.0
654.7
652.9
1.7
682.0
670.3
668.6
1.7
339.4
129.6
9.6
2.0
475.7
336.0
138.2
351.
141.
10.0
2.0
476.0
2.
473.6
2.4
495.0
495.0
1 Includes guaranteed debt of Govt, agencies, specified participation
certificates, notes to international lending organizations, and District of
Columbia stadium bonds.
2 Gross Federal debt and Agency debt held by the public increased
1.42
GROSS PU BLIC DEBT O F U.S. TREA SURY
Billions of dollars, end of period
Type and holder
1973
I
29.7
1.9
635.8
634.1
1.7
636.0
506.4
147.1
10.0
1.9
524.3
144.9
1.8
682.0
$0.5 billion due to a retroactive reclassification of the Export-Import Bank
certificates of beneficial interest from loan asset sales to debt, effective
July 1, 1975.
Note.—Data from Treasury Bulletin. (U.S. Treasury Dept.)
Types and Ownership
1974
1975
1977
1976
Jan.
1 Total gross public debt1.....................
By type:
2 Interest-bearing debt..........................
3 Marketable...................................
4
Bills..........................................
5
Notes........................................
6
Bonds.......................................
7 Nonmarketable2........................... .
8
Convertible bonds3....................
9
Foreign issues4.........................
10
Savings bonds and notes...........
11
Govt, account series5...............
By holder:6
12 U.S. Govt, agencies and trust funds
13 F.R. Banks..................................
14 Private investors...........................
15
Commercial banks....................
16
Mutual savings banks...............
17
Insurance companies.................
18
Other corporations...................
19
State and local governments. . . .
Individuals:
20
Savings bonds.......................
21
Other securities......................
22
Foreign and international7........
23
Other miscellaneous investors8. .
469.9
492.7
576.6
467.8
107.8
124.6
37.8
491.6
282.9
119.7
129.8
33.4
363.2
157.5
26.0
60.8
108.0
22.8
63.8
119.1
21.6
67.9
119.4
164.0
216.7
40.6
231.2
2.3
22.3
72.3
129.7
270.2
197.6
2.3
208.7
2.3
167.1
38.6
212.5
2.3
652.5
421.3
129.6
78.5
261.7
60.3
2.9
6.4
10.9
29.2
141.2
80.5
271.0
55.6
2.5
6.1
11.0
29.2
139.3
87.9
349.4
85.1
4.5
9.3
20.2
33.8
147.1
97.0
409.5
102.5
5.5
12.3
25.5
41.6
60.3
16.9
63.4
21.5
58.4
23.2
67.3
24.0
66.5
38.6
55.5
19.3
1Includes $2.5 billion of non-interest-bearing debt (of which $612
million on Apr. 30, 1977, was not subject to statutory debt limitations).
2 Includes (not shown separately): Securities issued to the Rural
Electrification Administration and to State and local governments, de
positary bonds, retirement plan bonds, and individual retirement bonds.
3 These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner’s option for 1Vi
per cent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
4 Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency series.
5 Held only by U.S. Govt, agencies and trust funds.
575.7
653.5
Feb.
Mar.
Apr.
May
653.9
663.3
669.2
671.0
672.1
653.0
662.3
668.2
164.0
219.5
40.5
164.2
225.9
41.6
164.3
229.6
41.5
424.0
229.0
2.3
22.2
72.6
126.8
144.0
94.1
431.6
230.7
2.3
22.1
73.0
127.8
668.5
162.0
230.7
41.4
435.4
434.1
232.8
2.2
22.1
73.4
234.4
2.2
21.9
73.9
128.2
415.8
101.0
5.6
12.2
27.8
44.4
144.4
95.8
423.1
104.5
5.7
12.2
27.9
42.3
72.4
28.6
72.8
28.7
72.8
29.1
78.1
43.2
80.3
43.4
82.3
46.7
157.9
230.2
43.3
239.5
2.2
21.8
74.3
133.0
428.3
106.0
5.2
12.2
26.0
43.4
72.0
28.8
129.0
671.0
431.4
145.0
96.0
84.7
48.9
6 Data for F.R. Banks and U.S. Govt, agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.
7 Consists of the investments of foreign balances and international
accounts in the United States. Beginning with 1974, the figures exclude
non-interest-bearing notes issued to the International Monetary Fund.
8Includes savings and loan associations, nonprofit institutions, cor
porate pension trust funds, dealers and brokers, certain Govt, deposit
accounts, and Govt.-sponsored agencies.
Note.—Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement of the Public Debt of
the United States, U.S. Treasury Dept.; data by holder from Treasury
Bulletin.
Federal Finance
A33
1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity
Par value; millions o f dollars, end o f period
Type of holder
1975
1977
1976
Mar.
1975
Apr.
Mar.
All maturities
1 All holders...................................................................... 363,191
2 U.S. Govt, agencies and trust funds.................................
3 F. R. Banks...................................................................
19,347
87,934
4 Private investors.............................................................. 255,860
5 Commercial banks...................................................... 64,398
3,300
6 Mutual savings banks..................................................
7,565
7 Insurance companies...................................................
9,365
8 Nonfinancial corporations...........................................
2,793
9 Savings and loan associations.......................................
9,285
10 State and local governments........................................
11 All others................................................................... 159,154
435,379
15,788
95,987
434,065
112,270
15,528
99,837
307,820
323,604
318,699
80,133
4,519
10,091
14,284
5,605
12,625
196,347
78,234
4,510
9,959
14,448
5,288
16,102
190,159
144,528
7,058
30,518
141,132 '147,108
6,158
6,141
30,966
31,249
74,694
103,742
106,929
29,629
1,524
2,359
1,967
1,558
1,761
35,894
Total, within 1 year
12 All holders...................................................................... 199,692
2,769
13 U.S. Govt, agencies and trust funds................................
14 F. R. Banks.................................................................... 46,845
15 Private investors.............................................................. 150,078
16 Commercial banks...................................................... 29,875
983
17 Mutual savings banks..................................................
2,024
18 Insurance companies...................................................
7,105
19 Nonfinancial corporations............................................
914
20 Savings and loan associations.......................................
5,288
21 State and local governments........................... .............
22 All others................................................................... 103,889
All holders...................................................................... 157,483
U.S. Govt, agencies and trust funds.................................
207
F. R. Banks.................................................................... 38,018
Private investors.............................................................. 119,258
Commercial banks......................................................
17,481
554
Mutual savings banks..................................................
Insurance companies....................................................
1,513
5,829
Nonfinancial corporations............................................
518
Savings and loan associations.......................................
4,566
State and local governments........................................
All others................................................................... 88,797
40,005
2,010
3,885
2,618
2,360
2,543
50,321
109,984
42,980
2,186
3,827
3,708
2,734
2,848
51,701
5,950
31,649
43,089
2,141
3,810
3,530
2,521
4,590
47,247
5 to 10 years
211,035
2,012
51,569
218,080
1,957
49,695
216,788
1,910
52,459
26,436
3,283
6,463
43,045
2,879
9,148
43,204
2,149
9,901
45,806
157,454
166,428
162,419
16,690
31,018
31,154
33,469
31,213
1,214
2,191
11,009
1,984
6,622
103,220
29,881
1,333
2,050
9,959
2,627
6,557
114,020
27,270
1,357
1,756
10,250
2,511
8,690
110,585
4,071
448
1,592
175
216
782
9,405
Bills, within 1 year
23
24
25
26
27
28
29
30
31
32
33
Apr.
1 to 5 years
421,276
16,485
96,971
78,262
4,072
10,284
14,193
4,576
12,252
184,182
1977
1976
163,992
6,278
567
2,546
370
155
1,465
19,637
6,559
703
2,645
337
174
1,416
19,319
2,145
10,192
7,156
717
2,833
422
184
1,240
20,917
10 to 20 years
449
41,279
164,264
305
39,455
161,977
285
41,689
14,264
4,233
1,507
11,865
3,102
1,363
11,718
3,102
1,380
11,685
3,102
1,410
122,264
124,504
120,003
8,524
7,400
7,236
7,173
17,303
454
1,463
9,939
1,266
5,556
86,282
13,974
436
1,123
8,745
1,617
5,287
93,322
11,218
476
816
8,771
1,515
7,255
89,951
552
232
1,154
61
82
896
5,546
Other, within 1 year
339
139
1,114
142
64
718
4,884
322
136
1,084
191
55
663
4,7$5
320
135
1,085
171
56
666
4,741
Over 20 years
34 All holders......................................................................
35 U.S. Govt, agencies and trust funds.................................
42,209
2,562
8,827
47,043
1,563
10,290
53,816
1,652
10,240
54,811
1,625
10,770
10,530
2,053
2,601
14,200
2,350
3,642
15,269
2,421
4,045
15,258
2,421
4,127
37 Private investors..............................................................
38 Commercial banks......................................................
39 Mutual savings banks..................................................
40 Insurance companies....................................................
41 Nonfinancial corporations............................................
42
43 State and local governments........................................
44 All others...................................................................
30,820
35,190
41,924
42,416
5,876
8,208
8,803
8,709
12,394
429
511
1,276
396
722
15,092
Note.—Direct public issues only. Based on Treasury Survey of Owner
ship from Treasury Bulletin (U.S. Treasury Dept.).
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting as of April 30, 1977; (1) 5,498 commercial
13,910
760
728
1,070
718
1,066
16,938
15,907
897
927
1,214
1,010
1,270
20,698
16,052
881
940
1,479
996
1,435
20,634
271
112
436
57
22
558
4,420
427
143
548
55
13
904
6,120
390
162
485
89
15
1,140
6,522
399
161
475
73
15
917
6,669
banks, 467 mutual savings banks, and 724 insurance companies, each
about 90 per cent; (2) 447 nonfinancial corporations and 486 savings
and loan assns., each about 50 per cent; and (3) 499 State and local
govts., about 40 per cent.
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A34
Domestic Financial Statistics □ June 1977
1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages o f daily figures, in millions o f dollars
1977
Item
1974
1975
1977, week ending Wednesday—
1976
Feb.
1 U.S. Govt, securities............
By maturity:
2 Bills................................
3 Other within 1 year.........
4 1-5 years........................
5 5-10 years......................
6 Over 10 years.................
By type of customer:
7 U.S. Govt, securities
dealers.....................
8 U.S. Govt, securities
brokers....................
9 Commercial banks..........
10 All others1......................
11 Federal agency securities
Mar.
Apr.
6,027
10,449
12,871
11,128
13,597
15,260
14,801
15,719
11,392
7,976
10,557
2,550
250
465
256
58
3,889
223
1,414
363
138
6,676
210
2,317
1,019
229
7,593
283
3,262
1,388
346
7,445
234
2,373
883
193
8,829
215
2,727
1,592
235
9,502
163
3,366
1,905
325
9,304
285
3,365
1,606
240
10,890
222
2,487
1,922
199
6.784
209
2,001
1.784
613
4,910
172
1,332
1,261
300
6,610
122
2,631
945
249
1,603
5,478
3,047
5,132
1,301
5,742
2,884
r4,875
867
4,961
2,201
3,362
975
2,722
1,636
2,651
1,068
4,274
2,176
3,039
2,512
a , 800
1,667
6,055
2,820
5,178
1,424
1,436
1,768
2,288
652
885
1,537
4,428
3,013
3,893
1,523
1,750
1,451
1,941
1,360
3,407
2,426
3,257
1,492
965
998
964
3,300
2,528
3,808
965
1,043
1,548
1,579
1,590
4,795
2,705
4,575
2,010
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
Item
May 11 May 18 May 25
3,579
1 Includes—among others—all other dealers and brokers in commodi
ties and securities, foreign banking agencies, and the F.R. System.
Note.—Averages for transactions are based on number of trading days
in the period.
1.45
Apr. 20 Apr. 27 May 4
1974
1975
Transactions are market purchases and sales of U.S. Govt, securities
dealers reporting to the F.R. Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. Govt, securities, redemptions
of called or matured securities, or purchases or sales of securities under
repurchase, reverse repurchase (resale), or similar contracts.
Positions and Sources of Financing
1977
1976
Feb.
Mar.
1977, week ending Wednesday—
Apr.
Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20. Apr. 27
Positions2
1 U.S. Govt, securities............
2 Bills................................
3 Other within 1 year.........
4 1-5 years........................
5 5-10 years......................
6 Over 10 years.................
7 Federal agency securities....
2,580
1,932
-6
265
302
88
1,212
5,884
4,297
265
886
300
136
943
7,592
6,290
188
515
402
198
729
6,251
4,646
193
587
417
407
466
5,266
4,864
237
-14
52
128
383
5,911
5,215
253
211
101
131
688
5,273
5,000
276
-94
1
91
394
3,770
3,298
292
13
65
103
216
7,106
6,345
195
119
353
95
581
7,431
6,978
223
-46
184
92
562
7,667
2,860
6,566
278
403
216
203
1,049
2,279
280
237
-83
148
648
Sources of financing3
8 All sources.........................
Commercial banks:
9 New York City...............
10 Outside New York City...
11 Corporations1....................
12 Allother............................
3,977
6,666
8,715
9,017
9,433
10,302
10,482
8,671
8,360
11,647
12,799
9,020
1,032
1,064
459
1,423
1,621
1,466
842
2,738
1,896
1,660
1,479
3,681
1,360
1,727
2,038
3,892
1,552
1,910
2,131
3,839
1,948
2,174
1,891
4,289
1,581
1,944
2,050
4,908
1,183
1,288
1,851
4,350
1,380
2,067
1,744
3,169
2,110
3,049
2,213
4,275
2,761
2,629
2,141
5,268
1,757
1,383
1,674
4,207
1A business corporations except commercial banks and insurance
11
companies.
2 Net amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commit
ment, that is, trade-date basis, including any such securities that have been
sold under agreements to repurchase. The maturities of some repurchase
agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. Securities owned, and
hence dealer positions, do not include securities purchased under agree
ments to resell.
3 Total amounts outstanding of funds borrowed by nonbank dealer
firms and dealer departments of commercial banks against U.S. Govt,
and Federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
Note.—Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.
Federal Finance
1.46
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
Millions of dollars, end of period
Agency
1974
1973
Debt Outstanding
1976
1975
A35
1977
Oct.
Nov.
Dec.
103,415
103,308
22,645
22,419
Jan.
Feb.
Mar.
1 Federal and Federally sponsored agencies..........
71,594
89,381
97,680
103,865
2 Federal agencies..............................................
3 Defense Department1..................................
5 Federal Housing Administration4.................
6 Government National Mortgage Association
Participation Certificates5.....................
7 Postal Service6............................................
8 Tennessee Valley Authority..........................
9 United States Railway Association6.............
10 Federally sponsored agencies............................
11 Federal home loan banks.............................
12 Federal Home Loan Mortgage Corporation..
13 Federal National Mortgage Association.......
14 Federal land banks......................................
15 Federal intermediate credit banks.................
16 Banks for cooperatives................................
17 Student Loan Marketing Association7..........
18 Other..........................................................
11,554
12,719
19,046
22,676
4,200
1,750
3,915
209
4,145
3,498
4,865
98
1,117
8,336
585
4,145
3,498
4,865
99
78,634
81,189
80,770
80,889
81,321
*80,654
81,260
Memo:
19 Federal Financing Bank debt6,8.......................
Lending to Federal and Federally sponsored
agencies:
20 Export-Import Bank 3..................................
21 Postal Service6............................................
22 Student Loan Marketing Association7..........
23 Tennessee Valley Authority.........................
24 United States Railway Association6.............
Other lending:9
25 Farmers Home Administration....................
26 Rural Electrification Administration............
27 Others........................................................
1,439
2,625
415
4,390
250
2,435
60,040
15,362
1,784
23,002
10,062
6,932
2,695
200
3
1,312
2,893
440
4,280
721
3,070
3
76,662
1,128
8,353
589
1,113
8,574
575
4,120
2,998
4,935
104
22,168
1,095
8,557
579
3,845
2,998
4,985
109
22,307
1,086
8,580
581
3,845
2,998
5,005
212
103,673
22,413
1,077
8,615
592
3,845
2,998
5,070
216
21,890
1,551
28,167
12,653
8,589
3,589
220
18,900
1,550
29,963
15,000
9,254
3,655
310
2
17,122
1,150
30,656
17,124
10,712
4,023
400
2
4,474
17,154
26,636
27,028
28,711
29,848
30,328
31,312
500
220
895
3
4,595
1,500
310
1,840
209
4,768
3,248
400
2,810
98
4,768
3,248
395
2,890
99
5,208
2,748
410
3,110
104
5,208
2,748
410
3,160
109
5,237
2,748
410
3 180
212
5,273
2,748
410
3,245
216
7,000
566
1,134
10,250
1,573
3,489
10,250
1,674
3,704
10,750
1,768
4,613
11,450
1,509
5,254
11,450
1,584
5,507
11,750
1,677
5,993
3
2,500
356
1Consists of mortgages assumed by the Defense Department between
1957 and 1963 under family housing and homeowners assistance programs.
2 Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17,1974 through Sept. 30,1976 on-budget thereafter.
4 Consists of debentures issued in payment of Federal Housing Ad
ministration insurance claims. Once issued, these securities may be sold
privately on the securities market.
5 Certificates of participation issued prior to fiscal 1969 by the Govern
ment National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
Department of Housing and Urban Development; Small Business Ad
ministration; and the Veterans Administration.
6 Off-budget.
1,220
7,188
564
103,487 r102,961
16,807
1,150
30,413
17,127
10,669
4,207
395
2
16,811
1,150
30,565
17,127
10,494
4,330
410
2
16,805
1,350
30,394
17,304
10,631
4,425
410
2
16,587
r957
30,143
17,304
10,556
4,695
410
2
16,626
957
30,392
17,304
10,670
4,899
410
2
7 Unlike other Federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
8The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other Federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double counting.
9 Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.
A36
1.4 7
Domestic Financial Statistics □ June 1977
NEW SECURITY ISSUES
Millions of dollars
State and Local Government and Corporate
Type of issue or issuer,
or use
1974
1975
1976
1976
Sept.
Oct.
1977
Dec.
Nov.
Jan.
Feb.
State and local government
1 All issues, new and refunding 1........................................ 24,315 30,607 35,313
By type of issue:
2 General obligation...................................................... 13,563 16,020 18,040
3 Revenue...................... ........ ................................... 10,212 14,511 17,140
4 Housing Assistance Administration 2...........................
461
79
76
133
5
By type of issuer:
4,784
7,054
7,438
6
7 Special district and statutory authority........................ 8,638 12,441 15,304
8 ^Municipalities, counties, townships, school districts. . . . 10,817 10,660 12,845
23,508 29,495 32,108
10
11
12
13
14
15
By use of proceeds:
Education..................................................................
Transportation...........................................................
Utilities and conservation............................................
Social welfare.............................................................
Industrial aid.............................................................
Other purposes...........................................................
4,689
2,208
7,209
4,392
445
10,552
4,730
1,712
5,634
3,820
494
7,118
4,900
2,586
9,594
6,566
483
7,979
2,819
3,544
3,345
2,352
3,429
3,150
1,265
1,549
1,973
1,551
1,529
1,807
1,867
1,552
1,624
1,518
5
20
9
1,176
1,166
10
10
8
470
1,238
1,105
2,591
499
1,470
1,553
2,921
537
1,725
1,074
361
1,251
732
468
1,786
1,166
441
1,335
1,367
2,879
1,847
3,084
3,019
356
251
747
767
31
439
428
332
632
676
23
830
351
221
1,333
574
69
331
334
107
723
233
63
387
489
104
1,050
483
15
943
502
410
935
580
12
580
Corporate
16 All issues 3..................................................................... 38,313
17 Bonds.............................. ............................................ 32,066
By type of offering:
18 Public........................................................................ 25,903
19 Private placement....................................................... 6,160
20
21
22
23
24
25
By industry group:
Manufacturing...........................................................
Commercial and miscellaneous....................................
Transportation...........................................................
Public utility..............................................................
Communication.........................................................
Real estate and financial.............................................
By type:
Preferred....................................................................
Common...................................................................
By industry group:
29 Manufacturing...........................................................
30 Commercial and miscellaneous...................................
31 Transportation...........................................................
32 Public utility..............................................................
33 Communication........................................................
34 Real estate and financial.............................................
27
28
53,356
42,262
4,817
4,263
4,431
3,482
3,047
6,480
3,989
42,756
53,619
2,357
5,560
3,387
2,708
1,888
32.583
10,172
26,453
15,808
2,100
2,163
2,729
753
1,256
1,101
2,568
2,992
2,786
601
1,108
780
9,867
1,845
1,550
8,873
3,710
6,218
6,247
16,980
2,750
3,439
9,658
3,464
6,469
10,863
13,243
4,361
4,357
8,297
2,787
9,222
11,094
670
546
1,212
1,118
140
577
554
1,261
77
240
803
155
946
949
501
376
193
795
163
328
690
2,275
696
564
560
196
1,271
920
817
743
165
634
50
979
602
568
346
47
210
290
426
820
2,253
3,994
3,458
7,405
2,789
8,305
136
418
276
673
282
408
308
612
103
499
128
692
544
940
22
3,964
217
562
1.670
1,470
1
6,235
1,002
488
2,237
1,183
24
6,101
776
771
83
33
7
347
84
88
73
611
177
9
34
532
27
88
110
198
596
15
89
136
352
25
175
94
225
267
60
1Par amounts of long-term issues based on date of sale.
2 Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
3 Figures, which represent gross proceeds of issues maturing in more
than 1 year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
Sources.—State and local government securities, Securities Industry
Association; corporate securities, Securities and Exchange Commission.
Corporate Finance
A37
1.48 CORPORATE SECURITIES Net Change in Amounts Outstanding
Millions o f dollars
1975
Source of change, or industry
1974
All issues1
1 New issues...................................................... 39,344
2 Retirements.................................................... 9,935
3 Net change...................................................... 29,399
1976
Q2
Q3
Q4
Ql
Q2
Q3
Q4
53,123
12,184
40,939
15,602
3,211
12,390
9,079
2,576
6,503
13,363
3,116
10,247
13,671
2,315
11,356
14,229
3,668
10,561
11,385
2,478
8,907
13,838
3,723
10,115
40,468
8,583
31,886
38,994
9,109
29,884
11,460
2,336
9,124
6,654
2,111
4,543
9,595
2,549
7,047
9,404
1,403
8,001
10,244
3,159
7,084
8,701
1,826
6,875
10,645
2,721
7,924
13,219
1,605
2,165
7,236
2,980
4,682
8,978
2,259
3,078
6,829
1,687
7,054
4,574
483
429
1,977
810
852
1,442
221
147
1,395
472
866
2,069
528
1,588
1,211
429
1,222
2,966
203
985
1,820
498
1,530
1,529
726
488
1,260
953
2,128
1,551
610
1,092
2,109
335
1,178
2,932
720
513
1,640
-99
2,218
7,980
3,678
4,302
12,787
2,408
10,377
14,129
3,075
11,055
4,142
875
3,266
2,425
465
1,960
3,768
567
3,200
4,267
912
3,355
3,985
509
3,477
2,684
652
2,032
3,193
1,002
2,191
17
-135
-20
3,834
398
207
1,607
1,137
65
6,015
1,084
468
2,634
762
96
6,171
854
538
500
490
7
1,866
359
43
412
108
53
1,043
97
247
433
462
4
1,537
604
160
838
88
5
2,174
47
203
1,120
318
25
1,300
735
-21
744
117
17
932
19
203
-68
239
49
1,765
53
153
1Excludes issues of investment companies.
2 Extractive and commercial and miscellaneous companies.
Note.—Securities and Exchange Commission estimates of cash trans
actions only, as published in the Commission’s Statistical Bulletin.
1.49
1976
53,255
10,991
42,263
Bonds and notes
4 New issues...................................................... 31,354
6,255
5 Retirements....................................................
6 Net change: Total............................................ 25,098
By industry:
7,404
7
8
Commercial and other2............................. 1,116
341
Transportation, including railroad.............
9
10
Public utility............................................ 7,308
3,499
11
Real estate and financial........................... 5,428
12
Common and preferred stock
13 New issues......................................................
14 Retirements....................................................
15 Net change: Total............................................
By industry:
Manufacturing..........................................
16
Commercial and other2.............................
17
Transportation, including railroad.............
18
19
Public utility............................................
20
Communication........................................
Real estate and financial...........................
21
1975
OPEN-END INVESTMENT COMPANIES
Millions of dollars
New issues and retirements exclude foreign sales and include sales of
securities held by affiliated companies, special offerings to employees,
new stock issues and cash proceeds connected with conversions of bonds
into stocks. Retirements, defined in the same way, include securities
retired with internal funds or with proceeds of issues for that purpose.
Net Sales and Asset Position
1977
1976
Item
1975
1976
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
655
628
141
45,760
2,958
42,802
423
463
-40
45,040
3,260
41,780
463
553
-90
44,516
3,474
41,042
556
490
66
44,862
2,777
42,085
INVESTMENT COMPANIES
excluding money market funds
1
2
3
4
5
6
Sales of own shares1...................................
Net sales....................................................
Assets3......................................................
Cash position4........................................
Other......................................................
3,302
3,686
-384
42,179
3,748
38,431
4,226
6,802
2,496
47,537
2,747
44,790
1Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
2 Excludes share redemption resulting from conversions from one fund
to another in the same group.
3 Market value at end of period, less current liabilities.
378
450
-72
44,858
2,434
42,424
446
419
27
661
628
33
45,369
2,635
42,734
47,537
2,747
44,790
4 Also includes all U.S. Govt, securities and other short-term debt
securities.
Note.—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.
A38
1.50
Domestic Financial Statistics □ June 1977
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Account
1974
1975
1975
1976
1976
1977
Q3
1 Profits before tax..............................................
2 Profits tax liability............................................
3 Profits after tax.................................................
4
5
6
7
Dividends.........................................................
Undistributed profits.........................................
Capital consumption allowances.........................
Net cash flow....................................................
127.6
52.4
75.2
114.5
49.2
65.3
30.8
44.4
32.1
33.2
89.4
122.6
81.6
126.0
Q2
Q3
Q4
QIp
131.3
57.2
74.1
150.2
154.2
156.3
32.6
39.5
90.5
130.0
32.2
41.9
92.9
134.8
141.1
61.4
79.7
33.1
46.6
94.3
140.9
146.2
54.8
72.1
97.3
145.6
Ql
126.9
147.9
64.4
83.5
35.2
48.3
Q4
63.5
82.7
34.4
48.3
96.2
144.5
65.1
85.1
35.4
49.7
98.2
147.9
67.4
86.8
37.7
49.1
68.6
87.7
37.6
50.1
100.5
149.6
102.6
152.7
Source.—U.S. Dept, of Commerce, Survey of Current Business.
1.51
NONFINANCIAL CORPORATIONS
Billions of dollars, end of period
Account
Current Assets and Liabilities
1971
1972
1975
1974
1973
1976
Q3
Q4
Ql
Q2
Q3
Q4
753.5
68.4
21.7
775.4
816.8
3.7
318.1
295.6
63.9
475.9
791.8
71.1
23.9
328.5
4.3
324.2
302.1
66.3
484.1
1 Current assets..................................................
2 Cash...........................................................
3 U.S. Govt, securities....................................
4 Notes and accounts receivable........................
U.S. Govt.1..............................................
5
6
Other.......................................................
7 Inventories...................................................
8 Other..........................................................
9 Current liabilities.............................................
10 Notes and accounts payable...........................
11
U.S. Govt.1..............................................
12
Other.......................................................
13 Accrued Federal income taxes......................
14 Other..........................................................
529.4
574.4
643.2
712.2
716.5
731.6
53.3
11.0
57.5
10.2
61.6
11.0
62.7
11.7
65.6
14.3
68.1
19.4
15 Net working capital.........................................
203.6
221.1
243.4
326.0
3.4
240.0
215.2
48.1
352.2
220.5
234.4
3.5
217.6
200.4
43.8
4.9
215.6
13.1
92.4
4.0
230.4
15.1
102.6
221.3
269.6
293.2
3.5
266.1
246.7
54.4
3.5
289.7
288.0
56.6
298.0
3.3
294.7
298.2
3.6
294.6
285.8
60.0
310.9
70.8
23.3
321.8
77.0
26.4
328.2
401.0
450.6
444.7
457.5
3.6
307.3
288.8
63.6
465.9
265.9
292.7
279.6
6.2
288.0
286.9
293.8
6.8
287.0
22.0
160.1
7.0
284.7
24.9
167.5
291.7
302.9
274.1
287.6
299.5
307.7
316.9
4.3
261.6
18.1
117.0
5.2
287.5
23.2
134.8
242.3
261.5
219.6
59.0
273.4
19.4
145.6
271.8
6.4
281.6
20.7
148.8
6.4
280.5
23.9
155.0
4.3
323.9
315.4
69.8
499.9
7.0
295.9
26.8
170.2
l Receivables from, and payables to, the U.S. Govt, exclude amounts
Source.—Securities and Exchange Commission estimates published
offset against each other on corporations’ books.
in the Commission’s Statistical Bulletin.
1.52
BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1975
Industry
1975
1 All industries................................................... 112.75
Manufacturing
2 Durable goods industries............................... 21.88
3 Nondurable goods industries........................ 26.13
Nonmanufacturing
Mining........................................................
Transportation:
5
Railroad...................................................
6
Air...........................................................
7
Other.......................................................
Public utilities:
8
Electric....................................................
9
Gas and other..........................................
10 Communication............................................
11 Commercial and other *................................
4
1976
1977
Q3
Q4
Ql
Q2
Q3
Q4
Ql
Q22
120.82
112.16
111.80
114.72
118.12
122.55
125.22
129.19
132.71
23.50
29.22
21.01
26.38
21.07
25.75
21.63
27.58
22.54
28.09
24.59
30.20
25.50
28.93
25.33
30.84
26.77
31.13
3.80
3.98
3.82
3.82
3.83
3.83
4.21
4.13
4.26
4.16
2.56
1.87
3.03
2.35
1.31
3.56
2.75
2.12
2.99
2.08
1.18
3.29
2.63
1.41
3.49
2.37
1.76
2.87
2.68
1.45
2.45
18.90
3.47
12.93
20.87
16.58
3.21
12.95
20.34
2.64
1.44
4.16
18.82
3.03
12.62
20.94
2.69
1.12
3.44
16.99
3.14
12.76
20.61
2.39
1.65
3.56
17.92
3.00
12.22
20.44
19.49 20.44
3.96
4.08
14.30 I D/• Zj
'X O
H K
21.36 >
21.96
4.24
17 Q
7
J/.o/
1Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
Note.—Estimates for corporate and noncorporate business, excluding
1976
18.56
3.36
12.54
20.68
18.22
3.45
13.64
20.99
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source.—U.S. Dept, of Commerce, Survey of Current Business.
Corporate Finance
A39
1.521 DOMESTIC FINANCE COMPANIES Assets and Liabilities
Billions of dollars, end of period
Account
1972
1973
1975
1974
1976
1977
Q3
ASSETS
Accounts receivable, gross
Consumer.........................................................
Business...........................................................
Total.............................................................
Less: Reserves for unearned income and losses...
Accounts receivable, net......................................
Cash and bank deposits........................................
Securities.............................................................
All other..............................................................
59.3
Total assets..........................................................
31.9
27.4
Q4
Ql
Q2
Q3
Q4
Ql
36.1
37.2
35.4
38.6
35.7
41.2
76.9
9.4
67.4
2.8
.8
12.5
36.7
42.4
37.6
42.4
38.6
44.7
9.8
69.4
2.7
.8
12.4
10.2
69.9
2.6
1.2
12.7
10.5
72.9
2.6
1.1
12.6
39.2
47.5
86.7
10.6
76.1
2.7
1.0
13.0
9.0
64.2
3.0
.4
12.0
64.8
3.1
.8
11.7
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
65.6
35.4
32.3
8.4
59.3
2.6
.8
10.6
73.2
79.6
80.5
81.6
83.5
85.3
86.4
89.2
92.8
5.6
17.3
4.3
22.7
4.8
7.2
19.7
4.6
24.6
5.6
9.7
20.7
4.9
26.5
5.5
8.2
20.8
4.5
26.7
7.7
8.0
22.2
4.5
27.6
6.8
12.6
12.5
65.6
11.5
73.2
12.4
Total liabilities and capital....................................
79.6
80.5
81.6
83.5
85.3
86.4
6.3
23.7
5.4
32.3
8.1
13.4
89.2
6.1
24.8
4.5
34.0
9.5
10.9
6.9
22.2
5.0
30.1
7.8
13.2
5.5
21.7
5.2
31.0
9.5
Capital, surplus, and undivided profits..................
7.4
22.2
4.9
28.4
7.8
12.8
67.7
7.4
51.9
2.8
.9
10.0
73.3
74.1
9.2
79.2
80.0
83.4
LIABILITIES
Bank loans...........................................................
Commercial paper................................................
Debt:
Short-term, n.e.c...............................................
Long-term, n.e.c................................................
Other..................... .........................................
13.4
13.9
92.8
Note.—Components may not add to totals due to rounding.
1.522
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstand
ing Apr. 30,
1977 i
Changes in accounts
receivable during—
Extensions
Repayments
1977
1977
1977
Feb.
Retail automotive (commercial vehicles)..........
Wholesale automotive....................................
Retail paper on business, industrial, and farm
equipment..............................................
Loans on commercial accounts receivable.......
Factored commercial accounts receivable........
All other business credit................................
1 Not seasonally adjusted.
Mar.
Apr.
Feb.
Mar.
Apr.
Feb.
Mar.
Apr.
10,017
10,237
255
246
246
255
966
5,730
787
2,554
1,626
1,337
648
4,735
45
-74
60
13
903
4,981
684
2,373
1,558
1,284
949
5,084
12,162
3,789
2,218
9,936
272
549
-109
42
11
144
698
2,492
1,685
1,282
639
2,447
1,498
1,271
694
5,181
896
2,512
1,615
1,193
703
4,829
639
2,441
1,561
1,164
59
51
124
118
A40
1.53
Domestic Financial Statistics □ June 1977
MORTGAGE MARKETS
Millions of dollars. Exceptions noted.
1976
Item
1974
1975
1976
Nov.
1977
Dec.
Jan.
Feb.
Mar.
Apr.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional mortgages on new homes
Terms:1
1
Purchase price (thous. dollars)..................
2
Amount of loan (thous. dollars)...............
3
Loan/price ratio (per cent)........................
4
Maturity (years).......................................
5
Fees and charges (per cent of loan amount) 2.
6
Contract rate (per cent per annum)..........
Yield (per cent per annum):
7
FHLBB series 3........................................
8
HUD series4............................................
40.1
29.8
74.3
26.3
1.30
8.71
44.6
33.3
”
74.7
26.8
1.54
8.75
48.4
35.9
74.2
27.2
1.44
8.76
48.6
36.0
75.6
27.0
1.36
8.83
51.0
37.1
74.7
27.7
1.38
8.87
52.5
39.0
76.3
28.2
1.38
8.82
53.1
39.3
75.8
27.8
1.31
8.78
53.8
40.9
77.5
28.0
1.34
8.74
53.4
39.6
75.5
27.3
1.30
8.73
8.92
9.22
9.01
9.10
8.99
8.99
9.05
8.95
9.10
8.90
9.05
8.80
8.99
8.80
8.95
8.85
8.94
8.90
9.55
8.72
9.19
8.52
8.45
7.93
8.25
7.59
8.40
7.85
8.50
7.98
c9.31
c9.43
9.26
c9.37
8.82
8.17
c8.99
c9 .11
8.66
9.00
8.45
8.84
8.48
8.82
8.55
8.86
8.58
8.06
8.68
8.91
8.57
7.96
8.67
8.97
SECONDARY MARKETS
9
10
11
12
Yields (per cent per annum) on—
FHA mortgages (HUD series) 5.................
GNMA securities6...................................
FNMA auctions:7
Government-underwritten loans............
Conventional loans...............................
Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
Total...........................................................
FHA-insured............................................
VA-guaranteed........................................
Conventional...........................................
Mortgage transactions (during period)
17 Purchases....................................................
18 Sales...........................................................
13
14
15
16
19
20
21
22
23
24
29,578
19,189
8,310
2,080
31,824
19,732
9,573
2,519
32,904
18,916
9,212
4,776
32,929
18,986
9,264
4,679
32,904
18,916
9,212
4,776
32,848
18,854
9,162
4,833
32,792
18,771
9,115
4,906
32,830
18,739
9.099
4.992
32,938
18,745
9,125
5,069
6,953
4
4,263
2
3,606
86
1,131
8
191
141
150
283
391
615
3,649
290
3,398
1,180
4,142
968
4,707
1,119
5,184
716
5,411
494.1
221.1
353.3
296.9
56.9
41.5
150.2
135.4
747.4
549.1
326.8
238.3
868.4
484.7
300.0
235.8
1,138.2
612.0
373.9
268.1
456.1
269.8
348.1
280.7
Mortgage commitments:8
6,247
Contracted (during period)......................... 10,765
6,106
3,398
7,960
4,126
Outstanding (end of period).........................
Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered 9.................................................. c5,462.6 c7,042.6 4,929.8
Accepted................................................. 2,371.4 3,848.3 2,787.2
Conventional loans:
1,195.4 cl,401.3 2,595.7
Offered 9.................................................. C
c765.0 ^1,879.2
c656.5
Accepted.................................................
FEDERAL HOME LOAN
MORTGAGE CORPORATION
25
26
27
Mortgage holdings (end of period)10
Total..........................................................
FHA/VA.................................................
Conventional...........................................
4,586
1,904
2,682
4,987
1,824
3,163
4,269
1,618
2,651
4,162
1,638
2,523
4,269
1,618
2,651
3,896
1,594
2,302
3,672
1,580
2,092
3,557
1,564
1,993
3,355
1,542
1,813
28
29
Mortgage transactions (during period)
Purchases....................................................
Sales...........................................................
2,191
52
1,716
1,020
1,175
1,396
101
91
208
60
16
51
98
290
200
285
235
388
30
31
Mortgage commitments:11
Contracted (during period)..........................
Outstanding (end of period).........................
4,553
2,390
982
111
1,477
333
245
452
105
333
250
462
170
533
459
760
606
1,112
1Weighted averages based on sample surveys of mortgages originated
by major institutional lender groups. Compiled by the Federal Home Loan
Bank Board in cooperation with the Federal Deposit Insurance Cor
poration.
2 Includes all fees, commissions, discounts, and “points” paid (by
the borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepayment
at the end of 10 years.
4 Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Dept, of Housing
and Urban Development.
5 Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through
securities, assuming prepayment in 12 years on pools of 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7 Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association’s
auctions of 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. No adjustments are made
for FNMA commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8Includes 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 FNMA-GNMA Tandem
plans.
9 Mortgage amounts offered by bidders are total bids received.
10 Includes participations as well as whole loans.
11 Includes conventional and Government-underwritten loans.
Real Estate Debt
A41
1.54 MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period.
Type of holder, and type of property
1972
1973
1974
1977
1976
1975
Q2
Q3
04
Ql
'864,345
'541,224
'100,344
'167,070
'55,707
'888,958
'558,415
'102,380
'170,870
'57,293
647,314
'910,625
'574,534
'102,591
'174,233
'59,267
'661,851
154,007
89,725
6,468
50,853
6,961
' 82,273
'53,568
'14,266
'14,381
58
682,321
416,883
92,877
131,308
41,253
505,400
742,504
449,937
99,851
146,428
46,288
542,552
801,640
491,568
100,471
158,724
50,877
581,296
'840,813
'521,705
'100,790
'164,209
'54,109
'611,524
67,998
6,932
38,696
5,442
74,758
7,619
43,679
6,049
77,018
5,915
46,882
6,371
82,900
6,107
48,125
6,567
'629,949
147,636
86,013
6,201
48,749
6,673
78,838
80.249
81,734
278,693
224,710
25,417
28,566
'.299,296
'241,623
'26,817
'31,456
' 311,847
'251,629
'27,505
'32,713
'260,895
'28,436
'33,799
86,234
89,168
17,590
19,629
45,196
6,753
89,691
16,861
19,374
46,456
7,000
90,217
91,581
58,320
66,891
2,598
4,728
2,710
1,432
1,109
1 All holders........................................
2 1- to 4-family................................
3 Multifamily...................................
4 Commercial..................................
5 Farm............................................
6 Major financial institutions.................
7 Commercial banks1........................
8
1- to 4-family.............................
9
Multifamily...............................
10
Commercial...............................
11
Farm........................................
12 Mutual savings banks.....................
13
1- to 4-family.............................
14
Multifamily................................
15
Commercial...............................
16
Farm.........................................
603,417
372,793
82,572
112,294
35,758
450,000
99.314
57,004
5,778
31,751
4,781
46,229
10,910
10,355
62
48,811
12,343
12,012
64
49,213
12,923
12,722
62
50,025
13,792
13,373
59
51,326
13,674
13,780
58
17
18
19
20
206,182
231,733
249,293
81.369
Savings and loan associations..........
1- to 4-family.............................
Multifamily...............................
Commercial...............................
21 Life insurance companies................
22
1- to 4-family.............................
23
Multifamily...............................
24
Commercial...............................
25
Farm........................................
26 Federal and related agencies..............
27 Government National Mortgage Assn.
28
1- to 4-family.............................
29
Multifamily...............................
30
31
32
33
34
Farmers Home Admin....................
35
36
37
38
39
40
Federal Housing and Veterans Admin.
41
42
43
44
45
46
Federal land banks.........................
1- to 4-family............................
Multifamily...............................
Commercial...............................
Farm........................................
1- to 4-family.............................
Multifamily...............................
Federal National Mortgage Assn. .. .
1- to 4-family.............................
Multifamily...............................
67,556
167,049
20,783
18,350
76,948
187,750
22,524
21,459
1,019
201,553
23,683
24,057
1,366
279
29
320
391
743
29
218
376
4,846
2,248
759
167
156
350
77,249
7,438
208
215
190
496
143,699
52.250
13,915
14,028
56
150,869
87,897
6,336
49,817
6,819
53,217
14,173
14,287
57
323,130
66,033
16,458
19,256
47,322
7,181
67,314
'66,753
3,165
2,392
2,486
2,582
5,557
5,068
16,108
19,201
48,854
7,418
' 333,697
'270,094
'29,032
'34,571
' 91,874
'15,780
'19,064
'49,405
'7,625
4,241
1,970
2,271
'66,248
' 4,013
'1,670
'2,343
830
228
1,355
754
143
133
325
1,064
500
46
151
405
454
218
72
320
98
28
64
310
3,476
2,013
1,463
2,009
2,006
4,015
4,970
5,111
5,092
5,150
5,406
19,791
24,175
29,578
31,824
32,028
32,962
32,904
32,830
9,107
11,071
13,863
16,563
17,978
18,568
19,125
19,942
4,586
4,987
4,529
4,269
4,269
3,557
2,199
1,139
17,697
2.094
1,789
1,754
35
14,404
5,504
5,353
151
441
331
110
8,459
20.370
3,805
123
10,948
2,604
2,446
158
18,040
7,890
7,561
329
766
23,778
5,800
406
13,457
1,990
2,980
25,813
6,011
549
16,014
1,781
3,330
26,112
5,916
575
17,403
1,716
3,376
27,030
5,932
586
17,982
1,676
3,474
26,934
5,970
601
18,524
1,732
3,674
26,836
5,994
611
19,331
4,217
369
23,799
11,769
11,249
520
4,588
399
34,138
18,257
17,538
719
4,166
363
41,225
23,634
22,821
813
3,917
352
44,960
26, 725
25,841
884
49,801
30,572
29,583
989
54,811
34,260
33,190
1,070
757
1,598
2,153
2,506
2,671
3,570
15,729
16,558
16,981
'125,090
'62,690
'20,011
'21,601
'20,788
127,715
64,495
19,307
22,399
21,514
617
149
608
149
1,349
249
1,831
322
5,017
131
867
2,444
5,458
138
1,124
2,664
9,384
11,273
14,283
15,438
98,856
45,040
21,465
19,043
13,308
112,160
51 ,112
23,982
21,303
15,763
117,833
53,331
24,276
23,085
17,141
119,315
56,268
22,140
22,569
18,338
'122,031
'59,246
'21,095
'22,137
'19,553
1 Includes loans held by nondeposit trust companies but not bank trust
departments.
2 Outstanding principal balances of mortgages backing securities in
sured or guaranteed by the agency indicated.
3 Other holders include mortgage companies, real estate investment
trusts, State and local credit agencies, State and local retirement funds,
noninsured pension funds, credit unions, and U.S. agencies for which
amounts are small or separate data are not readily available.
19,026
19,625
41,256
6,327
136,186
3,338
Federal Home Loan Mortgage Corp.,
59 Individuals and others3......................
60
1- to 4-family.............................
61
Multifamily...............................
62
Commercial...............................
63
Farm........................................
74,920
20,426
18,451
36,496
5,996
46,721
4,029
1,455
2,574
13
9.094
47 Mortgage pools or trusts2..................
48 Government National Mortgage Assn.
49
1- to 4-family.............................
50
Multifamily...............................
51 Federal Home Loan Mortgage Corp.
52
1- to 4-family.............................
53
Multifamily...............................
54 Farmers Home Admin....................
55
1- to 4-family.............................
56
Multifamily................................
57
Commercial...............................
58
Farm........................................
132,105
73,230
22.315
17,347
31,608
5,678
40,157
5,113
2,513
2,600
1- to 4-family.............................
Farm........................................
1- to 4-family.............................
Multifamily...............................
119,068
6,782
116
1,473
2,902
9,194
295
1,948
2,846
9,670
541
2,104
3,123
2,141
365
9,587
535
2,291
3,316
'122,122
'60,816
'19,298
'21,834
'20,174
3,889
380
2,282
389
10,219
532
2,440
3,367
3,200
357
3,112
458
10,423
530
2,560
3,468
Note.—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, if not re
ported directly, and interpolations and extrapolations where required, are
estimated mainly by Federal Reserve. Multifamily debt refers to loans on
structures of 5 or more units.
A42
1.55
Domestic Financial Statistics □ June 1977
CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change
Millions of dollars
1976
Holder, and type o f credit
1974
1975
1976
Oct.
1977
Nov.
Feb.
Mar.
Apr.
Amounts outstanding (end of period)
1 Total.............................................. 155,384
By holder:
75,846
2
3 Finance companies...................... 36,208
4 Credit unions.............................. 22,116
17,933
5 Retailers1...................................
3,281
6 Others2.......................................
By type of credit:
50,392
7
Commercial banks................... 30,994
8
9
Indirect................................ 18,687
Direct.................................. 12,306
10
Finance companies................... 10,618
11
8,414
Credit unions...........................
12
366
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Mobile homes:
Commercial banks...................
Finance companies...................
Home improvement......................
Revolving credit:
Bank credit cards.....................
Bank check credit....................
All other......................................
Commercial banks, total..........
Personal loans......................
Finance companies, total..........
Personal loans......................
Credit unions...........................
Retailers..................................
Others.....................................
8,972
3,524
7,754
162,237
178,775
173,930
175,333
178,775
177,975
178,252
179,695
182,265
78,703
36,695
25,354
18,002
3,483
85,379
39,642
30,546
19,178
4,030
84,152
38,809
29,711
17,205
4,053
84,278
39,129
30,053
17,726
4,147
85,379
39,642
30,546
19,178
4,030
85,051
39,665
30,410
18,693
4,156
85,005
39,831
30,701
18,322
4,393
85,916
39,889
31,448
18,068
4,374
87,481
40,361
31,912
18,205
4,306
53,028
60,498
59,717
60,002
60,498
60,349
60,774
61,841
63,183
8,254
3,295
8,233
3,277
8,146
3,248
8,094
3,207
8,076
3,197
8,100
3,177
31,534
18,353
13,181
11,439
9,653
402
8,704
3,451
8,233
3,277
8,004
8,773
8,294
3,309
8,726
35,095
19,575
15,520
12,957
11,442
508
35,313
19,642
15,671
13,059
11,633
493
35,284
19,566
15,719
12,973
11,579
513
8,736
35,492
19,640
15,852
13,042
11,690
550
36,232
20,005
16,227
13,084
11,976
549
37,145
20,468
16,678
13,347
12,152
539
5,359
5,388
8,790
8,773
5,381
5,340
5,307
8,750
8,816
8,923
9,501
2,810
11,075
3,010
10,232
2,933
10,329
2,935
11,075
3,010
10,996
3,031
10,820
3,039
10,705
3,030
10,877
3,045
76,738
83,910
80,719
81,728
22,277
83,910
83,469
83,568
84,031
84,959
4,965
8,281
2,797
73,664
35,009
19,611
15,398
12,901
11,311
496
5,381
4,694
20,108
13,771
21,717
16,961
13,037
17,933
869
35,313
19,642
15,671
13,059
11,633
493
21,188
14,629
21,655
17,681
14,937
18,002
956
22,368
15,606
23,178
19,043
17.993
19,178
1,193
22,325
15,534
22,469
18,509
17,505
17,205
1,215
15,517
22,748
18,773
17,706
17,726
1,271
22,368
15,606
23,178
19,043
17,993
19,178
1,193
22,254
15,569
23,319
19,002
17,915
18,693
1,288
22,253
15,590
23,454
18,998
18,086
18,322
1,453
5,343
22,531
15,769
23,480
19,048
18,524
18,068
1,428
5,425
22,888
16,003
23,709
19,235
18,799
18,205
1,358
Net change (during period)3
28 Total..............................................
By holder:
29 Commercial banks......................
30 Finance companies......................
31 Credit unions..............................
32 Retailers.....................................
33 Others........................................
By type of credit:
34 Automobile..................................
Commercial banks...................
35
Indirect................................
36
37
Direct..................................
Finance companies...................
38
Credit unions...........................
39
40
Other......................................
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Mobile homes:
8,952
6,843
16,539
1,564
1,243
1,823
1,918
2,022
2,717
2,660
3,975
806
2,507
1,538
126
2,851
483
3,238
69
202
6,678
2,946
5,192
1,176
547
671
317
280
263
33
381
245
395
98
124
913
364
537
64
-55
565
481
416
249
207
829
442
540
118
93
1,462
373
717
238
-72
1,295
559
557
191
58
327
2,631
7,470
528
477
221
70
151
1,013
758
418
160
258
99
174
66
884
504
239
265
161
213
6
1,201
759
1,174
98
144
14
652
330
322
146
207
8
385
373
194
267
-19
686
357
329
282
203
2
-508
-310
-198
-100
958
-23
535
-340
875
821
1,239
36
3,779
1,289
2,490
1,620
1,980
91
350
117
233
77
105
-4
-471
-174
-56
-16
-43
-16
32
-16
-43
-18
-26
-43
16
3
17
-15
73
73
130
73
14
97
75
106
Commercial banks...................
Finance companies...................
632
168
-268
-73
Home improvement......................
804
248
271
416
44
103
55
54
Bank credit cards.....................
Bank check credit....................
1,443
543
1,220
14
1,576
199
123
27
71
6
-33
7
28
41
170
32
293
38
246
49
All other.....................................
5,036
3,072
7,172
884
645
72
747
1,023
931
1,069
1,083
Commercial banks...................
Revolving credit:
Commercial banks, total..........
Personal loans......................
Finance companies, total..........
Personal loans......................
Credit unions...........................
Retailers..................................
Others.....................................
611
1,255
898
803
479
1,473
1,538
-33
1,080
858
-64
717
1,900
69
87
768
1,180
977
1,523
1,362
3,056
1,176
237
1Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
183
161
258
237
166
263
15
47
163
161
239
98
73
199
148
236
113
313
64
-66
36
85
101
401
178
227
249
60
134
114
320
129
312
118
48
281
200
175
168
428
238
-54
66
231
160
291
251
336
191
34
Note.—Total consumer noninstalment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $39.0 billion at the
end of 1976, $35.0 billion at the end of 1975, and $33.4 billion at the end
of 1974. Comparable data for Dec. 31, 1977, will be published in the
Bulletin for February 1978.
Consumer Debt
A43
1.56 CONSUMER INSTALMENT CREDIT Extensions and Liquidations
Millions o f dollars
Holder, and type of credit
1974
1975
1977
1976
1976
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Extensions1
163,483
186,221
16,055
15,763
16,702
16,870
17,186
18,253
18,077
72,605
35,644
22,403
27,034
2,322
77,131
32,582
24,151
27,049
2,570
88,666
35,956
28,829
29,569
3,201
7,618
3,148
2,350
2,673
266
7,486
3,059
2,395
2,467
356
8,182
3,157
2,688
2,480
194
7,546
3,431
2,683
2,775
436
8,055
3,437
2,743
2,603
347
8,715
3,559
2,978
2,817
185
8,670
3,442
2,933
2,722
310
43,209
48,103
55,807
4,587
4,632
5,263
4,940
5,205
5,654
5,474
3,486
1,413
2,681
771
2,449
690
178
59
207
54
267
53
195
50
207
52
254
57
260
58
4,571
4,398
5,034
463
464
461
288
494
262
251
457
478
488
17,098
4,227
20,428
4,024
25,481
4,832
2,198
413
2,181
410
2,217
426
2,117
462
2,332
448
2,434
456
2,509
452
86,004
83,079
91,928
8,158
7,815
8,015
8,612
8,484
8,920
8,836
1 Total.............................................. 160,008
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
By holder:
Commercial banks......................
Finance companies......................
Credit unions..............................
Retailers2...................................
Others3.......................................
By type of credit:
Automobile..................................
Commercial banks...................
Indirect................................
Direct..................................
Finance companies...................
Credit unions...........................
Others.....................................
Mobile homes:
Commercial banks...................
Finance companies...................
Home improvement......................
Commercial banks...................
Revolving credit:
Bank credit cards.....................
Bank check credit....................
All other.....................................
Commercial banks, total..........
Personal loans......................
Finance companies, total..........
Personal loans......................
Credit unions...........................
Retailers..................................
Others.....................................
26,406
15,576
10,830
8,630
7,788
385
2,789
18,599
13,176
25,316
16,691
14,228
27,034
827
28,333
15,761
12,572
9,598
9,702
470
2,722
18,944
13,386
22,135
17,333
13,992
27,049
959
32,687
17,600
15,087
11,210
11,336
574
3,036
20,182
14,463
24,014
19,610
16,911
29,569
1,253
2,770
1,479
1,291
904
875
37
282
1,777
1,286
2,182
1,776
1,426
2,673
100
2,691
1,426
1,265
927
957
57
276
1,721
1,238
2,072
1,696
1,389
2,467
166
3,170
1,723
1,446
992
1,051
51
1,815
1,317
2,108
1,688
1,582
2,480
30
2,892
1,544
1,349
964
974
110
3,075
1,641
1,435
999
1,075
55
3,350
1,818
1,532
1,151
1,124
30
308
3,243
1,735
1,507
1,101
1,072
49
301
1,618
1,213
2,413
1,787
1,656
2,775
151
1,742
1,281
2,379
1,843
1,612
2,603
149
1,913
1,379
2,346
1,814
1,792
2,817
52
1,905
1,389
2,268
1,775
1,803
2,722
139
Liquidations1
156,640
169,682
14,491
14,520
14,879
14,952
15,164
15,536
15,418
74,280
32,099
20,913
26,980
2,368
81,988
33,010
23,637
28,393
2,654
6,947
2,831
2,070
2,410
233
7,105
2,814
2,000
2,369
232
7,269
2,793
2,151
2,416
249
6,981
2,949
2,267
2,526
228
7,227
2,995
2,203
2,485
254
7,253
3,186
2,261
2,579
257
7,375
2,883
2,377
2,531
252
45,472
48,337
4,059
2,420
1,363
1,058
827
770
42
2,470
1,356
1,114
829
813
43
4,155
4,250
4,183
4,320
4,453
4,300
2,854
1,245
2,949
844
2,921
864
233
74
250
70
234
70
238
67
233
96
238
53
243
73
3,767
4,150
4,266
390
360
388
364
385
382
382
15,655
3,684
19,208
4,010
23,905
4,632
2,074
386
2,110
404
2,250
419
2,089
421
2,161
416
2,141
419
2,264
403
80,969
80,007
84,757
7,274
7,170
7,268
7,590
7,553
7,850
7,753
28 Total.............................................. 151,056
By holder:
68,630
29
30 Finance companies...................... 34,838
19,896
31 Credit unions..............................
32 Retailers2................................... 25,496
2,196
33 Others3.......................................
By type of credit:
34 Automobile.................................. 42,883
26,915
35
36
Indirect................................ 15,886
37
Direct.................................. 11,029
8,730
38
Finance companies...................
6,830
39
Credit unions...........................
408
40
Others.....................................
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Mobile homes:
Commercial banks...................
Finance companies...................
Commercial banks...................
Revolving credit:
Bank credit cards.....................
Bank check credit....................
Commercial banks, total..........
Personal loans......................
Finance companies, total..........
Personal loans......................
Credit unions...........................
Retailers..................................
Others.....................................
2,178
17,345
12,278
24,513
16,212
12,755
25,496
860
27,798
16,101
11,697
8,777
8,463
434
2,451
17,864
12,528
22,199
16,616
12,092
26,980
872
28,908
16,311
12,597
9,590
9,356
483
2,620
19,002
13,486
22,491
18,248
13,855
28,393
1,016
1Monthly figures are seasonally adjusted.
2 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
239
1,594
1,125
1,924
1,539
1,260
2,410
86
221
1,649
1,191
1,909
1,535
1,150
2,369
93
2,517
1,393
1,124
846
843
43
234
1,615
1,169
1,872
1,575
1,268
2,416
96
2,474
1,384
1,090
866
800
43
227
1,533
1,111
2,012
1,608
1,429
2,526
90
2,571
1,402
1,169
838
862
49
237
1,608
1,167
2,059
1,714
1,300
2,485
101
2,591
1,432
1,159
957
857
49
233
1,632
1,179
2,171
1,646
1,363
2,579
105
2,557
1,378
1,178
828
869
47
236
1,674
1,229
1,976
1,524
1,467
2,531
105
3 Mutual savings banks, savings and loan associations, and auto dealers.
A44
Domestic Financial Statistics □ June 1977
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions o f dollars; half-year data are at seasonally adjusted annual rates.
1975
Transaction category, or sector
1971
1972
1973
1974
1975
1976
HI
1976
H2
HI
H2
Nonfinancial sectors
1 Total funds raised................................
Excluding equities.............................
By sector and instrument:
3 U.S. Govt.........................................
4
Public debt securities....................
5
Agency issues and mortgages.........
6 All other nonfinancial sectors.............
7
Corporate equities........................
8
Debt instruments..........................
9
Private domestic nonfinancial sectors
10
Corporate equities......................
Debt instruments........................
11
12
Debt capital instruments..........
13
State and local obligations. .
14
Corporate bonds.................
Mortgages:
15
Home.............................
16
Multifamily residential....
17
Commercial....................
18
Farm..............................
19
Other debt instruments............
20
Consumer credit.................
21
Bank loans n.e.c..................
22
Open market paper.............
23
Other.................................
24
By borrowing sector....................
25
State and local governments...
26
Households...........................
27
Farm.....................................
28
Nonfarm noncorporate..........
29
Corporate..............................
2
30
31
32
33
34
35
36
Foreign.........................................
Corporate equities.....................
Debt instruments........................
Bonds....................................
Bank loans n.e.c.....................
Open market paper.................
U.S. Govt, loans....................
151.
176.9
197.6
188.8
210.4
271.6
184.2
236.5
256.6
286.3
139.
166.4
190.0
185.0
200.3
260.8
173.8
226.9
243.0
278.2
24.
26,
-1 .
126.
11.
114,
121.
11,
15.2
14.3
1.0
161.7
10.5
151.2
157.7
10.9
8.3
7.9
.4
189.4
7.7
181.7
183.1
7.9
12.0
12.0
*
176.8
3.8
173.0
161.6
4.1
85.2
85.8
- .6
125.2
10.0
115.1
112.2
9.9
69.0
69.1
- .1
202.6
10.8
191.8
181.1
10.5
80.8
82.0
-1 .2
103.4
10.5
93.0
94.9
10.3
89.6
89.7
- .1
146.9
9.6
137.3
129.4
9.5
71.6
71.5
.1
185.0
13.6
171.4
169.1
13.3
17.
18,
28,
9
9
2
15.4
12.2
19.6
19.7
17.3
27.2
18.1
20.7
22
16.2
33.4
33.5
*
8.7
5.6
18.4
21.0
42.6
12.7
16.4
3.6
44.0
18.6
18.1
.8
6.5
16.3
9.2
46.4
10.4
18.9
5.5
68.6
21.7
34.8
2.5
9.6
121.1
157.7
183.1
109.
86,
11
6
17.8
42.1
4.5
10.3
46.4
5.2
*
5.2
.9
2.1
.3
1.8
146.8
102.8
15.2
64.8
5.8
13.1
58.8
4.0
- .4
4.4
1.0
3.0
-1 .0
1.5
175.3
106.7
14.8
73.5
9.7
12.3
72.9
6.2
- .2
6.4
1.0
2.8
.9
1.7
157.5
101.2
102.3
101.3
170.5
123.6
34.6
7.0
15.1
5.1
56.3
9.8
26.2
6.8
13.5
40.8
- .1
10.9
5.2
17.2
22.8
64.4
1.1
11.7
6.4
8.5
-14.5
-2 .2
9.1
20.5
7.7
3.5
15.3
161.6
112.2
18.6
45.2
7.9
6.7
83.1
15.3
- .2
15.5
2.1
4.7
7.1
1.6
1.0
14.9
49.7
9.4
1.2
37.1
13.0
.1
12.8
6.2
4.0
- .1
2.8
84.6
97.5
119.9
105.1
1
2
58.1
1.6
9.8
5.1
42.3
19.4
2.2
8.2
12.6
66.6 3
66.9 4
- .3
5
219.7 6
8.1 7
211.7 8
192.5 9
7.7 10
184.8 11
133.8 12
16.4 13
25.0 14
70.7 15
.6 16
13.5 17
7.6 18
51.0 19
21.6 20
12.7 21
-1 .3 22
17.9 23
192.5 24
155.8
113.5
46.9
-1 2 .8
1.1
-23.5
- .2
9.7
48.1
- .2
13.1
4.8
14.8
16.0
-5 .5
-4 .2
8.5
181.1
94.9
129.4
169.1
17.3
15.6
26.9 32
32.1 37
17.4 38
.9 39
17.2 40
- .7 41
14.7 42
3.3 43
11.4 44
4.4 45
2.8 46
-3 .0 47
8.8 48
-1.7 49
16.8
90.7
12.3
4.7
56.6
21.5
.3
21.2
8.4
6.8
2.5
3.6
13.9
39.0
9.4
- .8
33.5
8.5
.1
15.9
60.4
9.4
3.2
40.6
17.4
.1
5.7
.6
-1 .2
3.3
6.7
7.4
1.0
2.2
8.4
16.4
88.3
11.0
4.2
49.3
15.9
.3
7.3
4.2
.8
3.2
17.2
93.0
13.6
4.8
63.9
25
26
27
28
29
27.2 30
.3 31
9.4 33
9.3 34
4.2 35
4.0 36
Financial sectors
37 Total funds raised..............................
By instrument:
38 U.S. Govt, related...........................
39
Sponsored credit agency securities.
40
Mortgage pool securities..............
41
Loans from U.S. Govt.................
42 Private financial sectors...................
43
Corporate equities.......................
44
Debt instruments..........................
45
Corporate bonds......................
46
Mortgages....... ......................
47
Bank loans n.e.c.......................
48
Open market paper and Rp’s ...
49
Loans from FHLB’s.................
By sector:
Sponsored credit agencies..............
Mortgage pools.............................
Private financial sectors.................
Commercial banks.....................
Bank affiliates...........................
Foreign banking agencies...........
Savings and loan associations---Other insurance companies.........
Finance companies....................
REIT’s .....................................
Open-end investment companies.
Money market funds.................
17.0
29.1
56.7
43.0
14.8
29.8
14.4
15.3
21.5
5.9
8.4
19.9
23.1
13.5
17.7
14.0
13.1
18.0
11.1
20.7
36.8
- .8
1.0
1.1
4.8
3.5
7.6
3.8
2.1
3.5
.9
-2.7
1.1
4.8
11.1
2.4
- .4
1.6
-.1
.6
2.7
2.9
1.3
3.5
4.9
2.8
5.1
1.7
6.8
4.4
*
18.0
3.5
4.9
20.7
4.8
.7
.8
2.0
.5
6.2
6.3
- .5
16.3
3.6
1.5
3.5
-1 .2
14.0
11.8
7.2
35.3
16.3
3.6
36.8
8.1
2.2
5.1
6.0
.5
9.4
6.5
-1 .2
16.6
5.8
.7
19.9
1.0
18.9
2.1
-1 .3
7.5
3.9
6.7
2.3
-3 .9
2.8
-4 .0
17.3
5.8
3.2
10.3
-1.1
3.5
2.9
6.3
.9
4.5
1.1
- .5
2.4
1.7
.3
- .3
-2.1
.9
.7
-1 .9
.8
1.3
19.9
2.3
10.3
.9
1.3
1.2
.1
2.9
1.3
2.4
15.7
- .4
1.8
1.4
11.5
1.1
.4
1.2
5.8
1.9
-3 .3
7.8
-2 .0
2.5
1.2
-4 .7
7.6
-7 .3
2.0
15.7
2.5
11.5
7.6
- .8
.4
- .1
1.0
6.1
-2.1
.3
- .3
12.1
10.3
12.1
3.3
9.2
.6
2.1
1.2
3.9
14.2
*
9.5
.3
9.1
3.3
3.4
-3 .2
-1 .9
- .6
7.2
1.0
-3.6
6.8
-2.3
4.0
9.2
3.9
14.2
5.7
.9
- .9
-7 .8
.9
- .8
-1 .6
1.5
2.6
-2 .3
- .3
.2
3.6
1.0
2.1
-2 .2
.1
*
9.9
-1.3
-1.5
-1 .0
1.0
6.0
-1.8
-1.1
- .7
5.3
- .3
2.4
.7
1.0
6.2
-2.5
1.8
.2
198.6
1.5
10.2
251.8
.1
10.7
284.1
-1.1
15.0
318.4 62
1.8 63
9.6 64
307.0 65
84.7 66
16.4 67
38.8 68
95.2 69
21.6 70
19.1 71
11.8 72
19.5 73
.4
2.1
9.5
.2 50
17.2 51
14.7 52
53
54
55
56
57
58
59
60
61
All sectors
63
64
65
66
67
68
69
70
71
72
73
TW funds
nl
hv instrument .................
Investment company shares.....................
Other corporate equities...........................
Debt instruments.......................................
U.S. Govt, 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...........................................
168.1
1.3
13.7
153.1
30.7
17.5
23.5
52.5
11.6
12.1
.9
4.2
206.0
- .5
13.8
192.8
23.7
15.4
18.4
76.8
18.6
27.8
4.1
8.0
254.3
-1 .2
10.4
245.2
28.3
16.3
13.6
79.9
21.7
51.6
15.2
18.5
231.8
- .5
5.4
227.0
34.5
19.6
23.9
60.5
9.8
38.4
17.8
22.5
225.2
.8
10.4
214.0
98.0
17.3
36.3
59.0
8.5
-14.4
.5
8.7
301.4
.3
12.3
288.7
87.2
17.2
37.0
85.4
20.5
11.2
13.8
16.5
187.0
93.6
16.2
41.6
49.1
1.1
-27.6
6.2
6.8
241.0
102.4
18.4
31.0
69.0
16.0
-1 .2
-5.1
10.7
270.2
89.8
18.1
35.2
75.7
19.4
2.9
15.8
13.4
Flow o f Funds
1.58
A45
D IR E C T A N D IN D IR E C T SO UR CES O F F U N D S TO C R ED IT M ARK ETS
Billions o f dollars, except as noted; half-year data are at seasonally adjusted annual rates.
1975
Transaction category or sector
1 Total funds advanced in credit markets to
nonfinancial sectors................................
By public agencies and foreign:
2 Total net advances........................................
3 U.S. Govt, securities.................................
4 Residential mortgages...............................
5 FHLB advances to S&L’s .........................
6 Other loans and securities.........................
Totals advanced, by sector
7 U.S. Govt.................................................
8 Sponsored credit agencies.........................
9 Monetary authorities................................
10 Foreign....................................................
11 Agency borrowing not included in line 1.......
Private domestic funds advanced
12 Total net advances........................................
13 U.S. Govt, securities.................................
14 State and local obligations........................
15 Corporate and foreign bonds....................
16 Residential mortgages...............................
17 Other mortgages and loans.......................
18 Less: FHLB advances..............................
Private financial intermediation
19 Credit market funds advanced by private
financial institutions...............................
20 Commercial banks....................................
21 Savings institutions...................................
22 Insurance and pension funds.....................
23 Other finance............................................
24 Sources offunds...........................................
25 Private domestic deposits..........................
26 Credit market borrowing...........................
27
28
29
30
31
32
33
34
35
36
37
Other sources............................................
Foreign funds.......................................
Treasury balances.................................
Insurance and pension reserves..............
Other, net.............................................
1971
1973
1975
1976
1976
HI
H2
HI
166.4
190.0
185.0
200.3
260.8
173.8
226.9
243.0
43.4
19.8
7.6
7.0
*
5.1
34.2
9.6
8.2
7.2
9.2
52.7
44.2
22.5
55.9
26.8
51.9
36.6
50.5
26.7
2.8
5.2
8.9
26.4
5.9
1.8
9.2
.3
8.4
8.4
2.8
21.4
9.2
.7
19.9
9.8
25.6
6.2
11.2
23.1
102.1
155.0
175.7
155.3
34.4
7.0
-2 .7
4.6
-3 .7
17.5
19.5
31.2
35.0
-2 .7
16.1
15.4
13.1
48.1
62.3
*
18.7
16.3
10.0
48.5
89.3
7.2
11.9
14.7
6.7
19.5
22.6
19.6
20.9
26.9
71.9
6.7
16.2
-4 .0
9.5
15.1
14.5
8.5
6.1
13.5
12.8
-2 .0
18.2
10.2
20.6
9.8
15.2
17.7
32.6
15.9
-7 .3
10.6
14.9
15.9
7.0
14.2
14.0
12.4
16.5
-.6
8.3
15.2
13.2
10.1
-2 .0
13.1
169.6
75.5
222.6
60.4
17.2
30.3
52.7
60.1
-2 .0
135.9
203.4
17.3
32.8
24.4
15.7
-4 .0
109.7
149.4
163.8
126.2
116.0
181.8
109.7
149.4
163.8
126.2
116.0
181.8
12.6
30.5
42.1
6.9
37.8
25.4
48.8
50.6
39.1
14.2
5.9
89.4
7.6
-3 .9
2.2
8.6
5.7
92.8
79.1
6.3
33.2
39.6
13.7
10.4
3.4
70.5
47.2
17.8
13.8
100.9
18.0
86.5
36.0
23.8
17.4
86.4
35.3
64.6'
27.0
30.1
4.5
69.4
18.9
27.6
51.0
39.3
-1.8
90.5
.1
5.3
.7
11.6
12.8
-1 .0
18.4
17.8
14.5
-5 .1
26.0
2.4
- .4
-1 .7
29.9
-2 .4
23.6
47.2
40.8
53.7
105.3
83.7
90.3
76.2
75.7
67.4
96.7
84.8
4.2
3.1
4.2
3.0
9.1
19.4
7.5
.9
12.5
6.9
7.7
30.6
45.4
18.3
29.6
28.4
21.6
14.1
17.9
12.2
5.3
4.6
8.1
18.9
26.1
22.4
8.3
10.2
3.9
17.2
4.4
2.0
6.3
23.0
9.9
10.4
3.1
7.3
57.7
69.7
44.2
10.1
122.7
10.3
61.0
16.2
38.9
17.7
-5 .2
-7 .3
63.1
18.1
27.0
48.9
51.1
-2.3
2
3
14.8 4
-1 .7 5
21.1 6
14.9 7
21.3 8
6.1 9
19.0 10
17.4 11
61.2
26.9
234.4 12
57.8 13
16.4
33.5
56.4
68.6
-1.7
14
15
16
17
18
19
20
21
22
23
161.9
201.1
97.7
134.3
161.9
201.1 24
8.2
42.7
49.0
-2 .7
90.3
- .8
51.1
37.4
-5 .7
-3 .5
27 A
41.7
52.2
42.3
-1 .8
90.6
1.0
5.0
.1
32.5
5.2
70.1
5.0
10.3
12.9
3.5
5.6
41.0
9.6
7.9
2.7
8.9
95.7
75.0
97.7
94.7
.7
-13.3
39.0
59.2
-14.1
58.1
69.2
-27.3
39.4
63.0
11.9
16.8
9.5
20.7
7.3
15.3
5.4
-4 .0
7.1
5.7
6.2
210.5
1
134.3
-10.1
130.0
113.2
5.6
20.0
13.6
11.4
18.0
278.2
97.7
13.5
49.8
36.4
-*•9
2.5
-.1
34.3
12.1
19.6
7.1
5.9
6.3
12.2
90.0
18.4
26.7
31.1
36.5
- .6
10.8
-2 .3
15.3
H2
38.5
55.4
3.0
41.5
71.0
44.3
5.1
103.8
9.1
73.6
68.2
44.2
15.1
141.4 25
11.4 26
48.3 27
3.9
33.6
14.2
7.7
-4 .2
35.0
9.9
57.7
44.7 32
21.5
6.0
8.2
10.6
11.3
17.6
8.2
3.6
2.0
13.2
28
29
30
31
33
34
35
36
37
107.9 151.9 38
97.9 128.5 39
-17.9 -10.3 40
50.0 66.2 41
65.7
72.7 42
10.1
23.3 43
5.9
12.9 44
4.2
10.5 45
92.9
31.1
107.4
22.5
129.0
11.9
96.4
13.7
137.5
18.0
93.2
7.6
123.7
28.5
81.2
25.7
150.4
22.1
68.4
5.7
181.2
21.4
81.6
17.7
133.1
29.9
71.9
8.5
167.8
16.1
66.0
3.0
165.6
20.8
76.9
8.7
196.5
22.0
85.8
26.6
46
47
48
49
15.0
1.3
13.7
17.8
-2 .9
13.3
- .5
13.8
15.3
-2.1
9.2
-1 .2
10.4
13.3
-4.1
4.9
- .5
5.4
5.5
- .7
11.2
.8
10.4
8.3
2.9
12.7
.3
12.3
12.0
.7
11.7
1.5
10.2
9.2
2.4
10.8
.1
10.7
7.4
3.4
14.0
-1.1
15.0
11.8
2.1
11.4
1.8
9.6
12.1
- .7
50
51
52
53
54
Notes by line no.
1. Line 2 of p. A-44.
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,
and net issues of Federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
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.
1974
139.6
Private domestic nonfinancial investors
*
Direct lending in credit markets.....................
U.S. Govt, securities................................. -10.8
.5
State and local obligations........................
8.3
Corporate and foreign bonds....................
Commercial paper.................................... -1.1
3.2
Other......................................................
38 Deposits and currency...................................
39 Time and saving accounts...........................
40
Large negotiable CD’s...........................
41
Other at commercial banks....................
42
At savings institutions...........................
43 Money......................................................
44
Demand deposits..................................
45
Currency..............................................
46 Total of credit market instruments, deposits
and currency.........................................
47 Public support rate (in per cent)................
48 Private financial intermediation (in per cent)
49 Total foreign funds...................................
Memo: Corporate equities not included above
50 Total net issues............................................
51 Mutual fund shares..................................
52 Other equities...........................................
53 Acquisitions by financial institutions.............
54 Other net purchases.....................................
1972
29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
50. 52. Includes issues by financial institutions.
Note.—Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow of Funds Section, Division of Research and Statistics, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.
A46
2.10
Domestic Nonfinancial Statistics □ June 1977
NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1976
1974
Measure
1975
1977
1976
Oct.
Dec.
Jan.
Feb.1 Mar.r Apr.r
May
129.3
117.8
129.8
130.4
131.8
133.1
132.1
133.2
135.2
136.3
137.8
129.3
119.3
129.3
129.6
131.7
133.8
133.1
133.9
135.1
135.9
137.2
129.4
116.3
129.4
129.9
131.9
132.8
131.5
132.9
135.0
136.2
137.9
84.2
87.7
73.6
73.6
80.8
80.3
80.8
80.0
82.0
81.6
82.4
82.3
83.3
83.1
237.0
121.2
100.2
97.4
94.9
132.7
224.9
211.3
179.1
203.0
207.0
207.0
250.0
122.3
101.3
98.8
96.5
133.8
230.0
218.4
185.0
122.7
101.9
98.9
96.5
134.1
123.6
103.2
99.8
97.6
134.8
123.9
103.8
100.2
98.1
134.9
233.7
221.5
188.4
234.2
237.2
224.8
192.6
239.0
227.1
194.6
206.6
208.8
186.0
121.6
100.9
98.0
95.6
132.9
226.8
213.2
182.4
218.1
212.3
81.2
80.1
183.0
122.0
101.0
98.2
95.7
133.5
229.7
217.6
184.1
80.2
79.1
162.3
116.9
96.9
94.3
91.3
127.8
199.4
188.7
157.9
80.1
80.3
190.2
120.6
100.3
97.5
95.2
131.7
219.1
208.3
176.7
217.0
79.7
80.3
173.9
119.1
106.2
103.1
102.1
126.1
184.1
178.9
157.6
180.5
171.2
147.7
160.1
1 Industrial production...........................
Market groupings:
2
Products, total.............................
3
Final, total..............................
4
Consumer goods...................
5
Equipment............................
6
Intermediate.............................
7
Materials.....................................
Industry groupings:
8
Manufacturing.............................
Capacity utilization (per cent)1 in—
9 Manufacturing................................
10 Industrial materials industries..........
161.2
174.1
170.5
182.9
173.3
185.2
173.8
185.6
125.1
128.9
120.0
135.3
132.4
11 Construction contracts2......................
12 Nonagricultural employment, total3......
13 Goods-producing, total....................
14
Manufacturing, total....................
15
Manufacturing, production-worker
16 Service-producing............................
17 Personal income, total4........................
18 Wages and salary disbursements.......
19 Manufacturing................................
20 Disposable personal income................
21 Retail sales5.......................................
Prices:6
22 Consumer.......................................
23 Wholesale.......................................
118.2
124.0
110.2
123.1
115.5
198.5
186.0
127.4
136.9
114.4
138.3
131.6
127.3
136.8
114.3
136.8
130.5
1 Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and De
partment of Commerce.
2 Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations Systems Company, F. W. Dodge Division.
3 Based on data in Employment and Earnings (U.S. Dept, of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4 Based on data in Survey of Current Business (U.S. Dept, of Com
merce). Series for disposable income is quarterly.
2.11
Nov.
129.8
139.1
116.9
138.8
131.9
132.1
142.0
118.6
139.8
131.9
130.8
140.2
117.8
141.8
130.7
131.8
141.0
119.0
141.8
132.4
133.3
143.0
119.8
141.9
135.4
134.0
143.0
121.6
143.0
136.8
135.2
143.6
123.6
144.8
138.5
124.2
104.2
100.5
98.7
135.1
221.2
216.5
215.7
227.4
227.6
229.3
174.3
187.1
175.3
188.0
177.1
190.0
178.2
191.9
179.6
194.3
195.2
5 Based on Bureau of Census data published in Survey of Current
6 Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Dept, of Labor). Seasonally adjusted data for changes in
the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Dept, of Labor.
Business (U.S. Dept, of Commerce).
Note.—Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey of Current Business (U.S. Dept, of Commerce).
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1976
Series
Q2
Q3
1977
Q4
Q lr
Output (1967 = 100)
1976
Q2
Q3
1977
Q4
Ql
Capacity (per cent of 1967 output)
1976
Q2
Q3
1977
Q4
Q lr
Utilization rate (per cent)
1 Manufacturing........................................
129.4
131.1
131.5
162.3
163.2
164.3
80.2
80.8
80.6
81.0
136.6
125.2
139.3
126.3
138.9
127.5
133.1
140.0
129.5
161.3
Primary processing.......... ...................
167.5
158.0
168.8
158.8
170.1
159.6
171.4
160.6
81.5
79.2
82.5
79.6
81.7
79.9
81.7
80.6
4 Materials...............................................
5 Durable goods.....................................
Basic metal......................................
6
7
Textile, paper, and chemical.............
8
9
10
Paper...........................................
11
Chemical......................................
12 Energy................................................
130.3
132.6
131.8
132.8
161.7
163.1
164.3
165.5
80.6
130.7
117.1
146.6
151.2
114.4
131.9
175.1
119.9
128.9
107.5
149.2
153.4
111.1
132.4
180.5
121.9
165.5 166.7
143.1 143.7
171.0 172.5
178.3 180.1
139.0 139.8
145.7 146.7
208.7 211.2
141.5 142.7
167.8
144.4
174.1
182.0
140.6
147.9
213.7
143.9
169.0
144.8
175.6
183.6
141.4
148.9
216.2
144.3
76.2
77.4
85.9
85.0
83.1
90.9
84.0
84.8
81.3
78.4
81.5
85.0
84.0
81.8
89.9
82.9
84.0
80.2
128.4
107.7
147.0
151.5
111.7
130.2
177.6
121.5
80.3
76.3
74.2
84.9
83.6
78.6
88.9
83.5
84.5
2
3
126.1
110.8
146.9
151.6
115.5
132.5
175.3
120.0
76.5
74.6
84.4
83.2
79.4
88.1
83.1
84.4
Manpower
2.12
A47
LABO R FORCE, EM PLO Y M EN T, A N D U N E M P L O Y M E N T
Thousands o f persons; monthly data are seasonally adjusted. Exceptions noted.
Category
1974
1975
1977
1976
1976
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Mayp
Household survey data
1 Noninstitutional population1............
2 Labor force (including Armed
Forces)1..................................
3 Civilian labor force.........................
Employment:
4
Nonagricultural industries2.......
5
Unemployment:
Number..................................
6
7
Rate (per cent of civilian labor
force)................................
8 Not in labor force...........................
150,827
153,449
156,048
157,006
157,176
157,381
157,584
157,782
157,986
158,228
93,240
91,011
82,443
3,492
94,793
92,613
81,403
3,380
96,917
94,773
84,188
3,297
98,020
95,871
84,972
3,248
98,106
95,960
85,184
3,257
97,649
95,516
85,468
3,090
7,830
7,651
7,517
6,958
99,286
97,158
87,022
3,386
6,750
5.6
8.5
7,288
7.7
98,677
96,539
86,359
3,116
7,064
98,892
96,760
86,763
3,260
5,076
8.0
7.8
7.3
7.3
7.0
6.9
57,587
58,655
59,130
58,986
59,071
59,732
98,282
96,145
85,872
3,090
7,183
7.5
59,302
59,104
59,094
58,943
80,824
19,233
823
3,645
4,553
18,067
4,431
15,068
15,004
'81,395
'19,404
'842
'3,759
'4,568
'18,189
'4,453
'15,149
'15,031
'81,605
'19,481
'847
'3,835
'4,568
'18,194
'4,459
'15,171
'15,050
81,792
19,547
849
3,848
4,578
18,214
4,477
15,202
15,077
6,737
Establishment survey data
9 Nonagricultural payroll employment3
10 Manufacturing.............................
11 Mining.......................................
12 Contract construction..................
13 Transportation and public utilities.
14 Trade.........................................
15 Finance.......................................
16 Service........................................
17
78,413
20,046
694
3,957
4,696
17,017
4,208
13,617
14,177
77,050
18,347
745
3,515
4,499
16,997
4,222
14,008
14,773
79,443
18,958
783
3,593
4,508
17,694
4,315
14,645
14,947
1 Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and Earnings (U.S. Dept, of Labor).
2 Includes self-employed, unpaid family, and domestic service workers.
80,106
19,065
805
3,619
4,519
17,808
4,381
14,873
15,036
80,344
19,095
808
3,605
4,553
17,898
4,403
14,936
15,046
80,561
19,211
817
3,561
4,549
17,981
4,423
15,010
15,009
3 Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,
unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employ
ment and Earnings (U.S. Dept, of Labor).
A48
2.13
Domestic Nonfinancial Statistics □ June 1977
INDUSTRIAL PRODUCTION
1967 = 100 except as noted; monthly data are seasonally adjusted.
Grouping
1967
pro
por
tion
1976
aver
age
1976
Mar.
Apr.
1977
May r
Dec.
Jan.
Feb.'
Mar.
Apr.P
Maye
Major market groupings
1
128.4
129.6
133.1
132.1
133.2
135.2
128.9
127.3
137.4
113.5
135.0
130.6
118.6
139.8
131.9
133.1
130.8
140.2
117.8
141.8
130.7
133.9
131.8
141.0
119.0
141.8
132.4
135.1
133.3
143.0
119.8
141.9
135.4
136.3
135.9
134.0
143.0
121.6
143.0
136.8
137.8
128.0
126.3
136.1
112.9
134.7
129.2
133.8
136.8
114.3
136.8
130.5
128.1
128.1
126.4
136.1
112.9
134.9
128.2
141.1
143.2
151.2
145.1
146.1
152.3
152.4
152.8
137.9
124.1
126.5
144.6
142.7
175.1
171.2
150.6
184.9
139.7
127.0
129.4
146.1
143.9
139.1
139.5
140.0
143.2
136.6
143.4
150.8
177.3
115.2
150.3
150.7
100.00
129.3
27.68
20.14
12.89
39.29
3
4
5
6
129.8
60.71
47 82
Consumer goods
Automotive products....................................
10
Autos and utility vehicles...........................
1
1
Autos....................................................
Auto parts and allied goods.........................
V
8
Home goods.................................................
Appliances, A/C, and TV..........................
Appliances and TV................................
141.5
140.4
5.06
1.40
1.33
1.07
2.59
134.1
115.8
118.6
144.1
139.9
132.0
114.6
117.1
141.4
137.9
155.2
152.1
134.3
163.1
133.1
117.2
119.6
143.0
137.8
134.9
134.4
134.0
4.29
15.50
8.33
Nonfood staples........................................
Consumer chemical products..................
Consumer paper products......................
Consumer energy products.....................
Residential utilities.............................
7.17
2.63
1.92
2.62
1.45
Equipment
Business equipment...........................................
Industrial equipment.....................................
Building and mining equip.........................
Manufacturing equipment.........................
Power equipment......................................
Commercial transit, farm equip.....................
Commercial equipment..............................
Transit equipment.....................................
Farm equipment.......................................
Defense and space equipment............................
Intermediate products
37 Construction supplies.......................................
38 Business supplies.............................................
39
Commercial energy products.........................
Materials
40 Durable goods materials....................................
41
Durable consumer parts................................
42
Equipment parts...........................................
43
Durable materials n.e.c.................................
44
Basic metal materials................................
45 Nondurable goods materials..............................
46
Textile, paper, and chem. mat.......................
47
Textile materials........................................
Paper materials.........................................
48
49
Chemical materials....................................
55
56
57
58
154.8
149.9
132.0
167.2
7.89
Consumer foods and tobacco.....................
27
28
29
30
31
32
33
34
35
36
50
51
52
53
54
2.83
2.03
1.90
.80
19.79
9
n
14
is
16
17
18
IQ
?n
?i
22
23
24
25
26
127.3
12.63
126.9
137.2
130.8
144.6
166.6
113.3
145.4
136.1
7.51
127.9
177.4
106.4
135.3
145.5
173.2
103.8
130.6
77.9
6.42
6.47
1.14
20.35
6.77
1.44
3.85
1.47
5.86
3.26
1.93
.67
4.58
5.44
10.34
5.57
155.1
149.5
133.6
169.5
130.1
135.5
129.1
143.3
163.6
113.4
145.0
153.7
134.0
125.6
172.1
104.4
135.6
143.7
168.5
104.7
134.7
129.6
135.2
128.4
143.3
162.1
114.2
145.9
154.5
134.1
125.3
170.7
105.4
132.7
144.6
170.0
105.6
132.7
154.0
153.4
134.4
135.6
137.2
123.5
126.4
142.6
142.5
135.1
132.1
135.8
129.8
142.7
161.4
113.8
145.1
154.7
134.6
126.9
174.6
106.4
134.0
143.7
169.5
104.2
133.1
132.1
142.0
180.4
180.1
159.8
181.7
134.9
111.7
113.8
144.7
143.6
138.4
126.4
141.7
132.8
164.0
155.8
136.9
184.9
134.6
113.4
116.0
142.7
142.8
138.3
161.8
152.7
132.8
184.5
137.3
118.5
121.1
145.9
144.0
138.9
151.8
177.9
117.7
150.9
124.2 | 124.2
142.2 142.9
132.9 135.4
153.1 151.6
178.5 175.7
117.0 113.3
154.1 155.3
143.2
142.0
133.5
187.4
110.7
140.0
154.4
185.3
109.1
134.8
131.4
187.9
107.8
137.5
154.5
185.2
108.4
138.0
143.1
133.2
192.9
108.5
139.3
154.6
185.2
108.7
137.7
178.2
176.1
155.8
183.7
123.9
143.3
136.8
150.9
175.9
116.9
150.8
144.4
146.7
137.2
135.2
143.6
123.6
144.8
138.5
173.0
167.4
148.5
187.0
141.6
129.4
145.0
149.3
133.8
195.4
109.0
138.5
156.6
186.1
112.9
138.8
135.9
200.0
111.1
137.9
159.1
189.5
114.3
140.5
138.4
203.2
114.0
139.0
161.8
192.7
116.1
77.4
77.3
78.2
77.4
77.1
78.5
78.4
79.3
80.3
132.0
141.5
156.5
128.7
141.2
157.6
128.0
141.3
156.8
130.9
139.0
157.1
135.5
144.2
156.7
136.1
147.3
162.3
135.7
147.8
165.7
136.4
147.4
164.5
137.8
148.0
165.4
139.6
126.6
122.4
124.5
126.8
128.3
126.8
128.0
131.9
134.2
131.4
136.7
154.8
121.6
133.9
125.0
109.8
118.5
128.5
121.0
104.0
119.2
130.5
123.5
107.8
123.0
133.0
125.2
113.2
124.7
138.8
124.2
104.7
121.5
135.1
124.8
104.7
124.1
137.3
124.9
104.8
127.8
137.8
130.7
113.0
140.5
131.9
115.0
10.47
146.4
146.7
146.9
146.2
146.2
144.6
150.3
152.6
153.8
1.70
1.14
8.48
4.65
3.82
142.6
120.0
120.3
107.0
136.4
141.3
115.1
119.6
106.2
136.0
141.9
120.4
118.8
105.0
135.7
140.7
123.2
120.6
106.2
138.1
143.8
119.7
123.1
106.6
143.2
139.5
122.6
122.6
102.9
146.5
150.7
124.3
120.8
103.1
142.3
150.0
126.0
122.4
108.5
139.5
149.9
126.4
122.1
106.3
141.4
Supplementary groups
Home goods and clothing................................ 9.35
Energy, total.................................................... 12.23
Products...................................................... 3.76
Materials...................................................... 8.48
130.8
129.0
148.8
120.3
131.1
128.6
148.8
119.6
131.5
128.2
149.3
118.8
134.9
129.3
148.8
120.6
131.0
132.2
152.7
123.1
129.8
133.0
156.5
122.6
131.3
132.4
158.4
120.8
131.5
132.4
155 0
122.4
133.4
132.1
154.8
122.1
134.3
143.1
134.5
Containers, nondurable................................
Nondurable materials n.e.c............................
Energy materials..............................................
Primary energy.............................................
Converted fuel materials...............................
For N ote see opposite page.
7.62
1.85
1.62
4.15
151.2
114.4
131.1
175.5
152.7
115.5
130.1
178.0
152.2
114.1
132.1
177.2
150.9
116.4
131.2
173.9
150.6
113.6
127.6
176.3
148.8
110.6
127.6
174.2
154.2
110.4
133.2
181.9
157.2
112.4
136.5
185.5
158 7
113.0
136 2
187.8
159.6
135 3
132 .*
4
Output
A49
2.13 Continued
Grouping
SIC
code
1967
pro
por
tion
1976
aver
age
1976
Mar.
Apr.
May
1977
Dec.
Jan.
Feb. r
Mar.
Apr.P
Maye
Gross value of products in market structure
(annual rates, in billions of 1972 dollars)
1
1
507.4
1390.9
1277.5
U13.4
U16.6
o
3
4
5
Intermediate products.........................
550.6
302.9
123.5
124.3
426.2
546.2
422.9
545.0
421.8
299.8
123.5
299.9
122.1
122.6
123.0
551.5
303.7
123.7
123.7
427.5
570.6
315.7
128.2
126.5
443.9
564.2
570.3
577.8
579.2
309.3
127.2
312.6
128.6
128.6
316.8
131.7
129.2
316.1
132.2
130.9
436.5
127.8
441.2
448.4
585.6
448.5
452.9
317.9
134.7
132.7
Major industry groupings
12.05
6.36
5.69
3.88
114.1
151.7
H I.9
131.6
131.2
87.95
129.4
127.9
128.5
140.7
120.1
113.0
153.0
169.8
129.6
140.9
121.7
.51
.69
4.40
.75
122.8
116.9
112.0
118.3
122.3
114.4
111.9
119.3
124.3
114.4
111.3
117.5
20
21
22
23
26
27
28
29
30
31
8.75
.67
2.68
3.31
3.21
4.72
7.74
1.79
2.24
.86
132.0
117.2
135.9
126.1
133.1
128.3
122.4
136.4
126.3
132.2
120.7
169.4
132.7
199.8
82.0
Durable manufactures
Ordnance, pvt. & govt......................... 19,91
24
Lumber and products................ .........
25
Furniture and fixtures..........................
32
Clay glass, stone prod.........................
33
Iron and steel.................................. 331,2
34
Fabricated metal prod.........................
35
Nonelectrical machinery......................
36
Electrical machinery............................
37
Transportation equip...........................
371
Motor vehicles & pts........................
Aerospace & misc. tr. eq................... 372,9
Instruments........................................
38
39
Miscellaneous mfrs..............................
3.64
1.64
1.37
2.74
6.57
4.21
5.93
9.15
8.05
9.27
4.50
4.77
2.11
1.51
71.7
125.1
132.8
135.8
108.0
104.4
123.3
134.7
131.7
110.6
140.7
82.2
148.2
143.5
7
8
Q
10 Afsinufsirturincr____ ________________
11 Nondurable........................................
12 Durable..............................................
35.97
51.98
13
14
15
16
Mining
10
Metal mining.......................................
Coal................................................... 11, 12
13
Oil and gas extraction.........................
14
Stone and earth minerals.....................
17
18
19
20
21
Nondurable manufactures
Foods.................................................
Tobacco products................................
Textile mill products...........................
Apparel products................................
Paper and products.............................
22
23
24
25
26
Printing and publishing........................
Chemicals and products.......................
Petroleum products.............................
Rubber & plastic products...................
Leather and products...........................
27
28
29
30
31
32
33
34
35
36
37
38
39
40
141.0
121.4
i 1972 dollars.
Note.—Published groupings include some series and subtotals not shown
separately. For summary description and historical data, see Bulletin for
June 1976, pp. 470-79. Availability of detailed descriptive and historical
data will be announced in a forthcoming Bulletin.
134.8
136.1
136.4
136.1
135.3
135.9
132.8
131.5
132.9
135.0
136.2
137.9
118.3
119.2
110.8
116.7
130.4
125.9
112.8
117.9
135.6
95.3
112.0
121.6
132.3
100.8
115.8
124.9
133.8
124.1
117.0
126.4
127.5
118.4
117.3
124.9
122.4
118.0
129.2
115.4
135.7
126.1
133.9
131.2
114.5
138.0
130.3
134.0
134.3
119.1
133.3
128.0
131.8
137.1
117.0
133.0
125.2
136.5
138.5
117.0
133.1
123.5
136.§
139.3
135.4
137.9
140.4
121.0
170.6
131.8
203.5
86.0
122.0
168.7
131.6
198.2
87.7
120.5
166.6
132.7
185.6
91.4
123.1
173.6
138.9
212.3
73.4
135.5
114.8
131.8
123.6
130.6
124.3
172.0
141.0
218.7
74.8
122.4
175.1
145.4
220.4
75.0
124.0 123.6
177.5 177.6
145.1 146.2
225. S 226.9
73. S 73.7
125.0
145.2
69.5
121.1
130.6
133.7
101.4
97.7
120.2
132.9
127.8
111.2
140.8
83.3
144.4
142.5
69.1
122.8
131.7
132.7
105.4
103.5
121.5
133.5
130.0
110.6
141.3
81.7
145.4
140.7
71.4
123.0
131.0
133.9
113.2
110.7
121.4
134.0
131.8
112.9
144.3
83.3
149.0
145.5
71.8
127.5
135.7
142.0
102.7
95.6
128.2
141.2
135.6
118.2
156.4
82.4
155.7
146.8
70.8
132.7
135.1
137.3
100.0
89.8
125.7
139.5
134.0
113.5
145.5
83.4
153.7
147.8
72.4
132.2
137.1
139.0
100.4
91.3
126.0
139.4
137.6
113.4
145.4
83.3
157.0
147.9
72.5
132.1
136.5
143.7
107.2
97.9
127.8
146.4
138.1
120.5
\6l.2
82.3
156.9
147.4
74.0
132.5
137.4
143.8
112.3
104.4
129.1
142.7
139.7
74.5
117.3
111.5
130.7
145.4
141.7
119.7
158.2
83.5
156.8
148.7
120.8
158.5
85.4
157.7
150.1
113.9
151.4
167.3
140.7
119.0
113.5
150.8
165.7
132.0
116.2
155.5
143.7
125.2
113.2
161.5
143.7
123.0
116.5
158.8
145.7
124.0
120.3
154.0
146.8
126.8
119.0
153.4
147.5
128.3
119.9
153.9
148.9
130.3
A50
Domestic Nonfinancial Statistics □ June 1977
2.14
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates. Exceptions noted.
1976
Item
1974
1975
1976
Oct.
Nov.
1977
Dec.
Jan.
j Feb.
Mar. r
Apr.
Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized......................
2 1-family.................................
3 2-or-more-family....................
,074
927
1,281
1,492
1,590
1,514
1,307
A Started.....................................
,338
1,160
1,540
1,715
1,706
1,889
1,384
1,006
378
*•1,424
r378
7 Under construction, end of period 1
8 1-family.................................
9 2-or-more-family....................
',189
1,003
1,157
1,140
1,168
1,192
5
6
1-family.................................
2-or-more-family....................
644
431
888
450
516
673
669
278
892
268
531
895
386
1,163
377
All
656
501
1,297
1,362
998
494
1,269
446
662
478
1,326
989
1,072
518
1,236
470
671
497
1,529
1,712
1,534
r1,802
2,114
1,875
r1,198
r692
r1,215
r709
r505
1,247
r506
1,444
r1,416
r1,642
1,659
248
258
*■1,245
r397
275
1,053
461
927
380
1,324
565
686
507
1,064
465
1,208
504
1,520
594
1,051
483
1,444
431
740
508
10 Completed.................................
11 1-family.................................
12 2-or-more-family....................
',692
13 Mobile homes shipped...............
329
213
250
263
1,068
331
247
501
407
544
383
639
433
728
420
694
429
r808
r431
r815
r432
r864
r435
807
438
35.9
36.2
39.3
38.9
44.2
41.6
45.3
41.0
45.8
41.2
r45.9
41,6
r47.8
42.0
46.4
42.9
38.9
42.5
48.1
50.4
50.0
50,6
r45.7
r41.9
"50.7
r52.7
52.4
55.1
>,272
2,452
3,002
3,230
3,300
3,470
3,190
3,080
3,410
3,300
32.0
35.8
35.3
39.0
38.1
42.2
38.5
42.4
38.8
42.9
39.0
43.3
39.6
44.0
40.7
45.1
41.0
45.5
42.0
46.5
14
15
16
17
18
19
20
21
Merchant builder activity in
1-family units:
Number sold.............................
Number for sale, end of period *..
Price (thous. of dollars)2
Median:
Units sold...........................
Units for sale......................
Average:
Units sold...........................
EXISTING UNITS (1-family)
Number sold.............................
Price of units sold (thous. of
dollars):2
Median..............................
Average.............................
931
760
866
430
1,026
336
337
1,399
1,078
366
rl , 103
r313
1,194
465
275
254
Value of new construction 3
(millions of dollars)
CONSTRUCTION
22 Total put in place........................... 138,526
23 Private........................................... 100,179
24 Residential.................................. 50,378
25 Nonresidential, total................... 49,801
Buildings:
26
Industrial.............................
7,902
27
Commercial.......................... 15,945
Other...................................
5,797
28
29
Public utilities and other.......... 20,157
30 Public............................................ 38,347
31 Military......................................
1,188
32 Highway..................................... 12,069
33 Conservation and development. . .
2,741
34 Other.......................................... 22,349
132,043
144,821
148,475
152,819
152,185
137,087 r148,893
159,319
163,384
93,034
108,424
114,503
118,752
118,918
107,153 r116,441
125,679
128,278
35,106
46,476
46,558
8,017
12,804
5,585
20,152
39,009
1,391
10,345
3,227
24,046
59,948
48,476
6,910
12,586
6,252
22,728
36,397
1,479
9,112
3,659
22,147
1Not at annual rates.
2 Not seasonally adjusted.
3 Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
65,405
49,098
6,407
12,560
6,489
23,642
33,972
1,467
8,738
2,949
20,818
69,181
49,571
6,461
12,522
6,677
23,911
34,067
1,622
7,843
A,011
20,525
69,951
48,967
6,453
12,859
6,497
23,158
33,267
1,567
7,508
3,856
20,336
63,404
43,749
r68,080
'48,361
6,088
12,178
5,978
19,505
6,398
12,449
5,892
'23,622
74,978
50,701
7,194
13,927
5,930
23,650
29,934
32,452
33,640
1,509
5,975
3,446
19,004
1,597
*•7,244
*•4,037
*•19,574
1,444
7,916
3,769
20,511
77,114
51,164
7,168
13,808
6,193
23,995
1,585
Note.—Census Bureau estimates for all series except (a) mobile
homes, which are private, domestic shipments as reported by the Manu
factured Housing Institute and seasonally adjusted by the Census Bureau,
and (b) sales and prices of existing units, which are published by the
National Association of Realtors. All back and current figures are avail
able from originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.
Prices
2.15
A51
CONSUMER A N D WHOLESALE PRICES
Percentage changes based on seasonally adjusted data, except as noted.
12 months to— 3 months (at annual rate) to—
Item
1976
Apr.
1977
Apr.
1976
June
Sept.
1 month to—
1977
Dec.
1976
Mar.
Dec.
1977
Jan.
Feb.
Mar.
.6
.5
.6
.4
.6
.5
Index
level
Apr.
1977
(1967
Apr. = 100)1
Consumer prices
1 A items.................................................
H
3
4
5
6
Food...................................................
Commodities less food.........................
Durable...........................................
Nondurable.....................................
7 Services..................................................
8 Rent...................................................
9 Services less rent..................................
10
11
Other groupings :
All items less food1.............................
All items less shelter1..........................
6.1
6.8
6.1
5.3
4.2
10.0
.4
.8
1.0
4.8
6.3
6.0
3.9
3.4
10.4
.4
.8
.9
1.2
4.7
4.8
5.8
4.4
6.5
6.1
6.8
6.1
6.2
5.6
6.5
5.0
1.6
5.5
5.0
6.0
0.0
5.7
6.0
5.4
14.6
7.4
10.5
10.1
.1
.6
.7
.4
.7
.9
.5
2.0
.7
.9
1.5
.8
179.6
.8
173.3
1.5
.4
.5
.9
190.9
163.6
162.2
177.4
8.3
5.4
8.7
7.7
5.9
7.8
6.5
5.4
6.7
7.5
5.4
7.7
5.1
5.3
5.4
6.3
10.4
.5
.4
.8
.9
.3
.7
.5
.8
.8
.5
.7
.8
191.3
6.5
6.3
5.3
6.8
6.9
6.4
7.0
6.9
4.3
7.4
5.6
8.0
5.3
4.3
1.2
6.9
9.4
9.1
.3
.3
.1
.4
.5
.9
.6
1.1
.7
.6
.6
.6
.7
.8
.9
176.3
177.5
201.0
.5
.9
1.1
1.1
194.3
9.8
.4
.9
.6
151.6
198.6
Wholesale prices
13 All commodities......................................
14 Farm products, and processed foods and
15
16
18
19
21
22
23
Farm products....................................
Processed foods and feeds....................
Materials, supplies, and components of
which:
Crude materials2..............................
Intermediate materials 3....................
Finished goods, excluding foods:
Durable.......................................
Nondurable..................................
Producer..........................................
Memo:
24 Consumer foods.....................................
5.3
7.2
2.7
8.6
- .8
6.6
6.1
7.3
4.8
10.4
5.6
5.8
4.4
6.6
6.6
15.2
7.0
6.9
5.2
7.9
6.0
4.1
3.6
7.9
5.9
6.6
3.5
7.1
13.4 -12.0
6.6
.6
19.1
2.1
2.6
.3
1.1
- .1
2.0
2.1
2.5
1.9
2.9
3.4
2.5
195.9
1.8
7.9
.3
.5
.6
.8
.6
193.2
21.9
8.0
-2 .2
.5
-1 .2
.5
8.5
7.0
9.5
5.3
.3
.1
.3
.7
1.0
.7
1.1
.4
4.0
.6
.3
.5
.2
.5
2.3
.9
.8
.4
1.0
.4
.3
.6
.7
.7
.7
.6
283.1
200.5
7.7
5.1
9.1
4.7
21.6
7.1
5.2
3.3
6.5
9.5
13.2 -13.1
8.4
12.7
2.8
2.0
1.1
2.5
188.5
18.2 -11.9
10.3 -11.8
5.8
6.5
26.0
15.6
8.0
7.6
16.4
3.5
10.6
8.3
3.6
3.1
3.8
4.3
1Not seasonally adjusted.
2 Excludes crude foodstuffs and feedstuffs, plant and animal fibers,
oilseeds, and leaf tobacco.
10.2
- .1
2.2
1.8
208.1
188.5
170.3
150.5
183.5
181.6
3 Excludes intermediate materials for food manufacturing and manu
factured animal feeds.
Source.—Bureau of Labor Statistics.
A52
2.16
Domestic Nonfinancial Statistics □ June 1977
GROSS N A T IO N A L P R O D U C T A N D IN C O M E
Billions o f current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1975
1974
1975
1976
1976
Q4
Q2
Ql
1977
Q3
I
Q4
Ql
Gross national product
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1,413.2
By source:
Personal consumption expenditures................
Durable goods.........................................
Nondurable gootls...................................
Services...................................................
Gross private domestic investment.................
Fixed investment.....................................
Nonresidential.......................................
Structures.........................................
Producers’ durable equipment............
Residential structures...........................
Nonfarm..........................................
Change in business inventories.................
Nonfarm..............................................
1,516.3
1,691.6
1,588.2
1,636.2
1,675.2
1,708.9
1,745.1
1,796.1
887.5
973.2
1,079.7
1,012.0
1,043.6
1,064.7
1,088.5
1,122.0
1,159.1
215.0
183.7
239.6
201.4
229.6
239.2
247.0
242.8
267.9
149.2
147.1
160.0
148.7
153.4
157.9
163.0
165.6
173.9
10.7
12.2
-14.6
-17.6
121.6
376.2
389.6
204.3
54.1
95.1
55.1
52.7
131.7
409.1
432.4
198.3
52.0
95.1
51.2
49.0
156.5
440.4
482.8
141.8
421.6
448.6
227.7
205.7
55.3
104.7
67.7
65.1
52.1
96.6
57.0
54.2
-4 .3
-9.5
11.9
11.9
151.4
429.1
463.2
155.0
434.8
474.9
214.7
223.2
53.2
100.2
61.3
58.6
54.9
103.0
65.3
62.9
14.8
12.7
16.0
17.3
157.6
441.8
489.1
231.9
56.0
107.0
68.9
66.3
162.0
456.0
504.0
241.0
57.0
108.6
75.5
72.7
15.1
15.6
174.0
464.7
520.4
254.1
56.6
117.4
80.2
11A
1.7
2.2
13.8
13.0
15
16
17
Net exports of goods and services..................
Exports...................................................
Imports...................................................
144.4
136.9
148.1
127.6
162.7
156.0
153.7
132.7
154.1
145.7
160.3
151.0
167.7
163.0
168.5
164.3
4.2
- 9.3
170.5
179.8
18
19
20
Govt, purchases of goods and services............
SOS. 3
339.0
365.6
353.8
354.7
362.0
369.6
376.2
378.5
1,531.0
1,679.7
1,592.5
270.0
449.7
719.5
149.1
1,659.2
758.4
301.2
457.1
759.6
157.3
1,743.4
300.5
459.8
772.0
159.3
1,621.4
742.3
282.7
459.6
742.6
151.3
1,694.7
254.4
427.3
692.5
142.1
308.2
457.9
781.5
162.2
309.8
464.5
804.4
166.5
1,782.4
802.9
333.7
469.1
824.3
169.0
-14.6
-12.1
-2 .6
11.9
2.7
9.2
-4 .3
-10.6
6.3
14.8
-3 .6
18.5
16.0
5.4
10.6
15.1
6.8
8.3
1.7
2.0
- .3
13.8
8.2
5.6
1,191.7
1,264.7
1,219.2
1,246.3
1,260.0
1,272.2
1,280.4
1,300.3
Federal....................................................
State and local.........................................
7.5
111.6
191.6
By major type of product:
Final sales, total.......................................... 1,402.5
639.7
Goods......................................................
247.2
Durable goods.....................................
Nondurable..........................................
392.4
Services...................................................
626.6
146.9
Structures................................................
10.7
Change in business inventories.....................
Durable goods.........................................
7.1
Nondurable goods...................................
3.6
Memo:
30 Total GNP in 1972 dollars............................. 1,214.0
21
22
23
24
25
26
27
28
29
20.5
124.4
214.5
681.7
6.6
133.4
232.2
760.2
21.0
130.4
223.4
719.7
8.4
9.3
129.2
225.5
131.2
230.9
4.7
134.5
235.0
766.1
138.9
237.4
774.3
138.2
240.3
National income
31
1,135.7
32 Compensation of employees............................
875.8
33 Wages and salaries.......................................
764.5
34
Government and Government enterprises..
160.4
35
Other......................................................
604.1
36 Supplement to wages and salaries..................
111.3
37
Employer contributions for social
insurance..........................................
55.8
38
Other labor income..................................
55.5
1,207.6
928.8
806.7
175.8
630.8
1,348.4
1,028.4
190.7
699.7
1,264.6
963.1
836.4
182.2
654.1
1,304.7
994.4
861.5
185.4
676.1
1,337.4
1,017.2
881.1
188.7
692.4
1,362.5
1,037.5
897.8
191.7
706.1
1,389.3
1,064.5
921.0
197.0
723.9
1,431.4
1,097.7
947.1
200.0
747.1
59.7
62.5
67.9
70.1
61.6
65.2
65.9
67.1
67.1
69.0
68.6
71.1
70.2
73.3
74.7
75.8
90.2
96.7
97.2
93.2
100.3
97.1
103.6
122.1
890.4
138.0
126.7
132.9
39 Proprietors' income1........................................
40 Business and professional1...........................
41 Farm1........................................................
61.1
25.8
42 Rental income of persons2..............................
21.0
22.4
23.5
22.9
43 Corporate profits1..........................................
44 Profits before tax3.......................................
45 Inventory valuation adjustment....................
46 Capital consumption adjustment..................
84.8
127.6
-39.8
-3 .0
91.6
114.5
-11.4
-11.5
117.8
147.9
-14.6
-15.5
105.6
131.3
-12.3
-13.5
47 Net interest....................................................
67.1
74.6
82.0
75.8
78.6
86.9
65.3
24.9
1With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustments.
73.8
22.8
69.0
28.3
71.4
21.9
136.2
139.6
96.1
143.5
150.5
72.8
27.5
74.4
21.7
76.8
20.3
23.3
23.1
23.4
24.3
25.1
115.1
141.1
-11.5
-14.5
116.4
146.2
-14.4
-15.4
122.0
150.2
-12.6
-15.7
117.8
154.2
-20.0
-16.4
116.2
156.3
-23.1
-17.0
80.3
83.5
85.6
88.9
79.6
24.0
3 For after-tax profits, dividends, etc., see Table 1.50.
Source.—Survey of Current Business (U.S. Dept, of Commerce).
A53
National Income Accounts
2.17
PE R SO N A L IN C O M E A N D SA V IN G
Billions o f current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
Account
1974
1975
1976
1975
Q4
1977
1976
Ql
Q2
Q3
Q4
Ql
1,464.0
Personal income and saving
1 Total personal income.....................................
1,153.3
1,249 7
1,375.3
1,299.7
1,331.3
1,362.0
1,386.0
1,421.7
2 Wage and salary disbursements.........................
3 Commodity-producing industries..................
4
Manufacturing.........................................
5 Distributive industries..................................
6 Service industries........................................
7 Government and government enterprises......
8 Other labor income........................................
765.0
273.9
211.4
184.4
145.9
160.9
55.5
806.7
275.3
211.7
195.6
159.9
175.8
62.5
890.4
304.8
237.0
214.9
180.0
190.7
70.1
836.4
285.8
220.3
202.3
166.1
182.2
65.2
861.5
295.3
229.6
208.3
172.4
185.4
67.1
881.1
302.9
235.6
212.8
176.7
188.7
69.0
897.8
307.0
238.9
216.5
182.7
191.7
71.1
921.0
314.0
243.9
221.9
188.1
197.0
73.3
323.9
253.0
229.2
194.0
200.0
86.9
90.2
96.7
97.2
93.2
100.3
96.1
97.1
103.6
22.9
23.1
23.4
34.4
120.7
187.6
89.5
35.4
125.0
192.4
54.3
1,362.0
189.5
1,172.5
55.2
1,386.0
9 Proprietors’ income1........................................
10 Business and professional1...........................
11 Farm1........................................................
61.1
25.8
65.3
24.9
73.8
22.8
12 Rental income of persons2..............................
21.0
13 Dividends......................................................
14 Personal interest income..................................
15 Transfer payments..........................................
16 Old-age survivors, disability, and health
insurance benefits..................................
30.8
101.4
140.3
70.1
22.4
32.1
110.7
23.5
35.1
123.0
175.2
81.4
191.3
93.0
114.4
182.5
86.3
50.0
1,249.7
54.9
1,375.3
51.0
1,299.7
53.4
1,331.3
183.8
1,147.6
17
Less: Personal contributions for social
insurance..............................................
47.6
18 Equals: Personal income............................... 1,153.3
19 Less: Personal tax and nontax payments. . . .
170.4
20 Equals: Disposable personal income..............
982.9
21
Less: Personal outlays................................
910.7
22 Equals: Personal saving................................
72.2
Memo:
Per capita (1972 dollars):
23 Gross national product................................ 3,968.0
24 Personal consumption expenditures..............
887.5
25 Disposable personal income.........................
840.8
26 Saving rate (per cent)......................................
7.3
69.0
28.3
32.2
71.4
21.9
23.3
33.1
118.0
188.6
88.1
168.8
193.6
179.8
1,080.9
1,181.7
1,105.2
1,119.9
1,036.2
76.5
83.7
1,068.0
79.5
4,140.0
1,079.7
890.5
6.5
4,049.0
1,012.0
867.5
7.5
4,103.0
1,043.6
880.4
6.9
996.9
84.0
4,007.0
973.2
855.5
7.8
72.8
27.5
74.4
21.7
76.8
20.3
24.3
947.1
75.8
79.6
24.0
25.1
37.7
128.4
37.6
131.6
196.6
98.5
202.8
100.0
195.8
1,190.2
56.6
1,421.7
205.3
1,216.5
59.7
1,464.0
218.2
1,089.6
1,114.3
1,148.6
82.9
75.8
67.8
1,245.8
1,186.1
59.7
4,143.0
1,064.7
890.5
7.1
4,142.0
1,088.5
892.0
6.4
4,168.0
1,122.0
899.6
5.6
4,195.0
1,159.1
907.0
4.8
95.8
Gross saving
27 Gross private saving........................................
28 Personal saving...........................................
29 Undistributed corporate profits1...................
30 Corporate inventory valuation adjustment....
Capital consumption allowances:
31
Corporate................................................
32
Noncorporate..........................................
33 Wace accruals less disbursements.................
34 Government surplus, or deficit (— national
),
income and product accounts......................
35 Federal......................................................
36 State and local............................................
37 Capital grants received by the United States,
net..........................................................
211.6
72.2
1.7
-39.8
255.6
84.0
10.3
-11.4
274.6
76.5
18.3
-14.6
269.4
83.7
16.2
-12.3
273.8
79.5
20.6
-11.5
279.1
82.9
18.5
-14.4
278.9
75.8
21.5
-12.6
266.7
67.8
12.7
-20.0
261.8
59.7
9.9
-23.1
84.6
53.1
100.9
60.4
112.8
67.0
106.4
63.2
108.8
64.8
111.6
66.1
113.9
67.7
116.9
69.3
119.5
72.6
- 4 .2
-11.5
7.3
-6 4 .4
-4 4 .7
-6 1 .5
-71.2
6.9
-58.6
14.0
-69.4
7.9
-5 1 .6
-4 4 .9
-4 4 .7
-63.8
12.2
-54.1
9.2
-57.4
12.7
-3 7 .4
-59.3
21 .9
-21.2
-41.3
20.1
-2 .0
38 Investment......................................................
39 Gross private domestic................................
40 Net foreign.................................................
211.9
195.6
237.7
214.0
201.4
12.6
229.6
- .2
229.4
240.0
242.9
247.0
-4.1
242.8
-4.3
267.9
-18.1
41 Statistical discrepancy.....................................
6.8
4.4
7.7
6.1
7.2
5.8
8.7
9.2
9.2
215.0
-3 .0
183.7
11.9
1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustment.
239.6
-2 .0
239.2
.8
238.4
249.8
Source.—Survey of Current Business (U.S. Dept, of Commerce).
A54
3.10
International Statistics □ June 1977
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars, quarterly data are seasonally adjusted except as noted.1
1975
Item credits or debits
1974
1975
5 Investment income, net...................................................
6 Other service transactions, net.........................................
98,310
103,679
-5,369
-2,083
10,227
812
107,088
98,058
9,030
-883
6,007
2,163
8
9
3,586
-1,710
-5,475
16,316
-1,727
-2,893
1 Merchandise exports.......................................................
2 Merchandise imports......................................................
3 Merchandise trade balance 2.........................................
Remittances, pensions, and other transfers....................
U.S. Govt, grants (excluding military)..........................
1976
114,692
123,916
-9,224
391
10,538
2,696
4,401
-1,866
-3,139
Q4
Ql
Q2
Q3
Q4
27,657
25,437
2,220
12
1,670
455
26,997
28,324
-1,327
-15
2,286
475
29,600
32,387
-2,787
339
2,784
860
29,717
33,291
-3,574
223
3,000
578
4,357
-433
-818
1,419
. -483
-635
28,378
29,914
-1,536
-155
2,468
781
1,558
1,196
-446
-1,479
227
-487
-557
11,697
-604
10 Balance on current account............................................... -3,598
3,106
11 Not seasonally adjusted.................................................
4,305
12 Change in U.S. Govt, assets, other than official reserve
365 -3,463 -4,295
-952
assets, net (increase, — ............................................
)
-607 -2,530
13 Change in U.S. official reserve assets (increase, —
)............. -1,434
89
14 Gold...........................................................................
-172
-66
-21
15 SDR’s ........................................................................
-78
-466 -2,212
-57
16 Reserve position in IMF.............................................. -1,265
3
-75
-240
167
17 Foreign currencies.......................................................
18 Change in U.S. private assets abroad (increase,—
)............. -32,323 -27,523 -36,195 -10,375
19 Bank-reported claims.................................................... -19,494 -13,487 -20,742 -5,348
-943
20
Long-term............................................................... -1,183 -2,373 -2,098
21
Short-term............................................................... -18,311 -11,114 -18,644 -4,405
22
23
24
25
26
Nonbank-reported claims..............................................
Long-term...............................................................
Short-term...............................................................
U.S. purchase of foreign securities, net.........................
U.S. direct investments abroad, net..............................
27 Change in foreign official assets in the United States (in
crease, -f-)................................................................
28 U.S. Treasury securities...............................................
29 Other U.S. Govt, obligations.......................................
30 Other U.S. Govt, liabilities4........................................
31 Other U.S. liabilities reported by U.S. banks.................
32 Other foreign official assets5........................................
33 Change in foreign private assets in the United States (in
crease,-!-).................................................................
34 U.S. bank-reported liabilities........................................
Memo:
Changes in official assets:
47 U.S. official reserve assets (increase,—
).........................
48 Foreign official assets in the U.S. (increase,-)-)..............
49 Changes in OPEC official assets in the U.S. (part of line 27
above).....................................................................
50 Transfers under military grant programs (excluded from
lines 1, 4, and 9 above).............................................
-1,772
-972
301
638
742
-729
- 3,677
-817
-684
-1,009
-1,450
-1,153
-773
-1,578
-407
228
-45
-237
-491
-18
-716
327
-2 9
-8,550
14
-798
-794
-7,288
-461
718
-6,824 -13,534
-3,582
-4,767
-3,355
-9,038
721
-780
-2 6
1,449
-250
-3,332
-751
-385
-4,382
-962
-993
-2,362
-474
-2,747
-1,854
-7,753
-441
-1,081
-6,206
-6,307
-14
-1,758
-8,682
-5,000
-379
-593
-2,361
-1,694
-187
-564
-2,460
-1,757
146
-1,108
-1,357
-202
53
668
-2,743
-1,447
10,981
883
-470
-8,568
-754
-2,123
-1,593
3,282
902
724
5,818
254
6,899
4,338
891
1,732
-2,158
2,095
18,107
2,771
3,942
4,105
2,999
1,261
66
1,746
-598
524
3,876
116
988
1,750
331
21,452
8,427
15,022
3,103
1,454
3,225
5,248
5,095
16,017
647
10,974
691
675
3,518
1,766
5,015
9,301
566
5,013
1,012
2,215
1,069
307
499
134
762
1,998
68
1,482
-275
669
9
16,008
1,615
-212
1,827
697
378
2,745
-300
947
171
345
-174
2,667
2,505
2,437
172
10,802
-588
-1,017
429
2,825
1,250
561
146
545
-6 8
10
-78
213
1,038
1,229
-91
766
24
-332
356
453
1,030
-728
4,557
4,570
10,495
2,258
4,310
4,557
4,570
10,495
1,275
983
-1,434
10,257
-607
5,166
-2,530
13,094
89
2,272
10,841
7,108
9,517
1,817
2,232
400
1 Seasonal factors are no longer calculated for lines 13 through 50.
2 Data are on an international accounts (IA) basis. Differs from the
Census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
Line 4.
3 Differs from the definition of “net exports of goods and services” in
the national income and product (GNP) account. The GNP definition
-1,522
-452
-468
958
3,352
2,166
316
797
135
691
-25
3,543
-248
-188
-60
-598
131
422
1,907
73
67
1,699
-324
-285
-39
3,026
68
712
"*0
" 0
■
’ iVf
"
1
40 Foreign private purchases of U.S. Treasury securities, net.
41 Foreign purchases of other U.S. securities, net..............
42 Foreign direct investments in the United States, net......
43 Allocations of SDR’s ......................................................
44 Discrepancy....................................................................
45 Owing to seasonal adjustments.....................................
46 Statistical discrepancy in recorded data before seasonal
-3,221
1976
7,061
221
4,794
-4 0
-212
172
-56
21
155
3,120
1,834
3,963
1,773
1,347
-773
2,460
-1,578
3,308
-407
1,253
228
6,073
1,996
3,491
3,339
1,687
1,000
177
50
99
156
95
excludes certain military sales to Israel from exports and excludes U.S.
Govt, interest payments from imports.
4 Primarily associated with military sales contracts and other transac
tions arranged with or through foreign official agencies.
5 Consists of investments in U.S. corporate stocks and in debt securi
ties of private corporations and state and local governments.
Note.—Data are from Bureau of Economic Analysis, Survey of Cur
rent Business (U.S. Department of Commerce).
Trade and Reserve Assets
3.11
A55
U .S. FO R E IG N T R A D E
Millions o f dollars, monthly data are seasonally adjusted.
1976
Item
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments...................................
2 GENERAL IMPORTS including
merchandise for immediate con
sumption plus entries into bonded
warehouses.................................
3 Trade balance.................................
1974
1975
1976
97,908
107,130
100,252 96,115
-2,344 +11,014
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
114,807
9,699
9,589
10,410
9,599
9,808
10,072
9,970
120,677
-5,870
10,555
-857
10,623
-1,034
11,020
-610
11,269
-1,670
11,674
12,459
12,593
-1,866
-2,387
-2,623
Note.—Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Before 1974 imports were reported on a customs
import value basis. For calendar year 1974 the f.a.s. import value was
$100.3 billion, about 0.7 per cent less than the corresponding customs
import value. The international-accounts-basis data shown in Table 3.10
adjust the Census basis data for reasons of coverage and timing. On the
export side, the largest adjustments are: (a) the addition of exports to
Canada not covered in Census statistics, and (b) the exclusion of military
3.12
1977
exports (which are combined with other military transactions and are
reported separately in the “service account”). On the import side, the
largest single adjustment is the addition of imports into the Virgin Islands
(largely oil for a refinery on St. Croix), which are not included in Census
statistics.
Source.—U.S. Dept, of Commerce, Bureau of the Census, Summary
of U.S. Export and Import Merchandise Trade (FT 900).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1976
Type
1974
1973
1975
1977
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Mayp
1 Total............................................. 314,378
15,883
16,226
19,416
18,747
19,087
19,122
19,120 418,868 419,192
2 Gold stock, including Exchange
Stabilization Fund1..................... 3 11,652
11,652
11,599
11,598
11,598
32,166
2,374
2,335
2,365
2,395
11,658
2,375
11,658
3 Special Drawing Rights2.................
4 Reserve position in International
Monetary Fund...........................
2,383
11,658
2,389
11,658
42,384
3 552
1,852
2,212
4,307
4,434
4,682
4,819
4,812
5 Convertible foreign currencies.........
8
5
80
1,146
320
372
262
261
44,720
106
1Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock of the United States; see Table
3.24.
2 Includes allocations by the International Monetary Fund of SDR’s
as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971;
and $710 million on Jan. 1, 1972; plus net transactions in SDR’s.
3Change in par value of U.S. dollar on Oct. 18, 1973 increased total
reserve assets by $1,436 million, gold stock by $1,165 million, SDR’s
by $217 million, and reserve position in IMF by $54 million.
11,658
42,470
44,969
95
4 Beginning July 1974, the IMF 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 also are valued on this basis beginning July 1974. At valuation
used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets
at end of May amounted to $19,369; SDR holdings, $2,565, and reserve
position in IMF, $5,051.
A56
3.13
International Statistics □ June 1977
SELECTED U.S. LIABILITIES TO FOREIGNERS
Millions of dollars, end of period
Holder, and type of liability
1973
1974
Dec. 9
1 Total.............................................
2 Foreign countries.............................
3 Official institutions1.........................
4 Short-term, reported by banks in
the United States.2...............
U.S. Treasury bonds and notes:
5
Marketable3............................
6
Nonmarketable4......................
7 Other readily marketable
liabilities5.........................
Commercial banks abroad:
8 Short-term reported by banks in
the United States2,6..............
9 Other foreigners..............................
10 Short-term, reported by banks in
the United States2................
11 Marketable U.S. Treasury bonds
and notes3,7.........................
12 Nonmonetary international and
regional organization8...............
13
Short-term, reported by banks
in the United States2.........
14
Marketable U.S. Treasury
bonds and notes3..............
1977
Nov.
Dec.
Jan.
Feb.
Mar.p
Apr.p
151,329
147,913
142,846
' 91,900
'53,528
139,994
149,008
141,023
151,908
143,802
157,028
143,320
93,046
93,858
96,553
99,502
54,515
56,040
57,529
11,788
20,648
12,017
20,622
54,796
12,725
20,495
13,548
21,106
14,470
20,976
5,936
5,892
5,842
5,859
6,527
92,490
119,240
119,164
90,487
115,918
115,842
126,552 r144,638
120,929 136,407
66,861
76,801
r76,823
r80,712
r87,793
43,923
5,701
15,564
53,057
5,059
16,339
r53,079
5,059
16,339
49,530
6,671
19,976
1,673
2,346
2,346
4,535
'49,323
11,367
21,131
r5,972
17,694
30,314
'30,106
'37,377
33,510
33,088
32,874
35,378
8,803
8,913
29,516
' 10,701
'35,332
5,932
13,282
' 13,569
13,438
14,077
14,375
14,440
5,502
8,305
8,415
r10,000
12,312
'12,592
12,441
430
498
498
701
970
'977
997
13,056
1,021
12,993
1,382
12,886
1,554
2,003
1,955
3,322
3,171
'8,231
'5,505
2,726
8,483
5,450
3,033
7,919
4,625
3,294
8,106
4,288
3,819
7,708
5,282
151
5,623
5,292
331
7,985
3,918
48
3,322
3,171
151
1Includes Bank for International Settlements.
2 Includes Treasury bills as shown in Table 3.15.
3 Derived by applying reported transactions to benchmark data.
4 Excludes notes issued to foreign official nonreserve agencies.
5Includes 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 foreign currencies to com
mercial banks abroad and to other foreigners.
7Includes marketable U.S. Treasury bonds and notes held by com
mercial banks abroad and other foreigners.
8 Principally the International Bank for Reconstruction and Develop
ment and the Inter-American and Asian Development Banks.
3.14
1976
1975
4,067
2,426
9 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in cover
age with those for the preceding date; figures in the second column are
comparable with those shown for the following date.
Note.—Based on Treasury Dept, data and on data reported to the
Treasury Dept, by banks (including Federal Reserve banks) and brokers
in the United States. Data exclude the holdings of dollars of the Inter
national Monetary Fund derived from payments of the U.S. subscription,
and from the exchange transactions and other operations of the IMF.
Data also exclude U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing special U.S. notes held by nonmonetary international
and regional organizations.
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
Area
1973
1974
Dec.3
1 Total.............................................
2
3 Canada.......................................
4 Latin American republics............
5 Asia...........................................
6 Africa........................................
7 Other countries 2.........................
66,861
45,764
3,853
2,544
10,887
788
3,025
76,801
44,328
3,662
4,419
18,604
3,161
2,627
'76,823
'44,328
3,662
4,419
18,627
3,160
2,627
1 Includes Bank for International Settlements.
2 Includes countries in Oceania and Eastern Europe, and Western
European dependencies in Latin America.
1976
1975
1977
Nov.
80,712
45,701
3,132
4,450
22,551
2,983
1,895
Dec.
Jan.
Feb.
Mar.p
Apr.p
87,793
44,075
2,406
4,087
33,906
'1,975
1,344
91,900
45,855
3,406
4,853
34,112
1,893
1,781
93,046
45,927
3,197
4,546
35,562
1,757
2,057
93,858
46,108
2,844
4,525
36,458
1,771
2,152
96,553
47,927
2,684
4,826
37,455
1,679
1,982
99,502
48,770
2,752
4,396
39,611
1,934
2,039
3 See Note 9 to Table 3.13.
Note.—Data represent breakdown by area of line 3, Table 3.13.
Bank-reported Data
3.15
SHORT-TERM LIABILITIES TO FOREIGNERS
By Holder and by Type of Liability
Millions of dollars, end of period
Holder, and type of liability
1973
A 57
Reported by Banks in the United States
1974
1975
Dec.8
1976
Nov.r
1977
Dec.r
Jan.r
Feb.
Mar.p
Apr.P
1 All foreigners, excluding the International
Monetary Fund......................................... 69,074
94,847
94,771
94,338 102,473 108,947 105,091 104,858 106,195 111,075
Payable in dollars......................................... 68,477
94,081
94,004
93,780 101,692 108,223 104,359 104,043 105,334 110,266
14,068
10,106
35,662
34,246
14,051
9,932
35,662
34,359
13,564
10,250
37,414
32,552
15,811
10,452
38,643
36,786
16,803
11,297
40,744
39,380
15,314
11,395
41,275
36,374
16,098
11,205
42,669
34,071
11,226
15,097
43,553
35,457
15,411
11,261
44,660
38,933
597
766
766
558
781
724
732
815
861
809
1,955
3,171
3,171
5,293
5,506
5,450
4,625
3,918
4,288
5,282
1,955
3,171
3,171
5,284
5,502
5,445
4,621
3,912
4,285
5,279
101
83
296
1,474
139
111
497
2,424
139
111
497
2,424
139
148
2,554
2,443
287
196
3,604
1,415
290
205
2,701
2,250
166
230
2,890
1,335
216
237
2,779
680
203
236
2,743
1,103
125
196
2,849
2,109
4
5
4
6
3
3
67,119
91,676
91,600
89,046
96,967 103,497 100,466 100,940 101,907 105,793
66,522
90,910
90,834
88,497
96,191 102,778
99,738 100,131 101,049 104,988
11,209
6,799
31,590
16,925
13,928
9,995
35,165
31,822
13,912
9,796
35,165
31,961
13,426
10,102
34,860
30,109
15,524
10,256
35,039
35,371
15,148
11,166
38,386
35,039
2
3
4
5
6
7
Deposits:
Demand............................................... 11,310
Time1................................................... 6,882
U.S. Treasury bills and certificates2........... 31,886
Other short-term liabilities3...................... 18,399
Payable in foreign currencies.........................
8 Nonmonetary international and regional
organizations4...........................................
Payable in dollars.........................................
9
Deposits:
10
Demand...............................................
11
Time1...................................................
U.S. Treasury bills and certificates.............
12
Other short-term liabilities5......................
13
14 Payable in foreign currencies.........................
15 Official institutions, banks, and other foreigners..
16 Payable in dollars.........................................
Deposits:
Demand...............................................
17
Time1...................................................
18
U.S. Treasury bills and certificates2...........
19
Other short-term liabilities3......................
20
8
16,513
11,092
38,042
37,130
15,882
10,968
39,889
33,391
14,895
10,968
40,810
34,354
15,286
11,066
41,811
36,825
597
766
766
549
776
719
728
809
858
805
22 Official institutions6......................................... 43,923
23 Payable in dollars......................................... 43,795
Deposits:
24
Demand............................................... 2,125
Time1................................................... 3,911
25
26
U.S. Treasury bills and certificates2........... 31,511
6,248
Other short-term liabilities5......................
27
28 Pnvnh/p in fnrei&n rurrpnrie.v.................... .....
127
53,057
53,079
49,530
49,323
53,528
54,515
54,796
56,040
57,529
52,930
52,952
49,530
49,323
53,528
54,515
54,796
56,040
57,529
2,951
4,257
34,656
11,066
2,951
4,167
34,656
11,178
2,644
3,423
34,199
9,264
2,685
2,132
34,706
9,799
3,394
2,289
37,725
10,120
2,931
2,456
38,081
11,047
2,404
2,376
39,559
10,457
2,629
2,269
40,454
10,689
2,757
2,380
41,508
10,884
21
Payable in foreign currencies.........................
127
127
29 Banks and other foreigners................................ 23,196 38,619
30 Payable in dollars......................................... 22,727 37,980
Banks7..................................................... 17,224 29,676
31
Deposits:
8,248
32
Demand............................................ 6,941
1,942
Time1...............................................
529
33
232
11
34
U.S. Treasury bills and certificates..........
Other short-term liabilities 3................... 9,743 19,254
35
8,304
Other foreigners....................................... 5,502
36
Deposits:
Demand............................................ 2,143 2,729
37
3,796
Time1............................................... 2,359
38
277
U.S. Treasury bills and certificates..........
68
39
1,502
Other short-term liabilities5...................
933
40
639
469
41 Payable in foreign currencies.........................
38,520
39,515
47,644
49,969
45,951
46,144
45,867
48,264
37,881
38,966
46,868
49,250
45,223
45,335
45,009
47,459
8,400
1,739
108
21,770
12,993
3,866
6,983
248
1,896
34,573
8,711
1,625
104
24,132
12,886
3,818
7,060
199
1,809
858
805
1 Excludes negotiable time certificates of deposit, which are included
in “Other short-term liabilities.”
2 Includes nonmarketable certificates of indebtedness and Treasury
bills issued to official institutions of foreign countries.
3 Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches of their head offices, bankers acceptances, commercial
paper, and negotiable time certificates of deposit.
4 Principally the International Bank for Reconstruction and Develop
ment, and the Inter-American and Asian Development Banks.
5 Principally bankers acceptances, commercial paper, and negotiable
time certificates of deposit.
29,467 28,966
7,534
8,231
1,885
1,856
232
335
19,119 19,241
8,414 10,000
2,730
3,248
3,744 4,823
325
277
1,664
1,604
639
549
34,556
8,897
1,663
124
23,872
12,312
36,658
9,104
2,279
119
25,156
12,592
32,788
8,475
2,074
122
22,111
32,279
3,943
6,461
209
1,700
4,015
6,524
198
1,854
12,441
3,741
6,636
183
1,876
9,387
1,779
102
21,011
13,056
4,091
6,813
229
1,924
776
719
728
809
32,016
6 Foreign central banks and foreign central governments and their
agencies, and Bank for International Settlements.
7 Excludes central banks, which are included in “Official institutions.”
8 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable with
those for the preceding date; figures in the second column are comparable
with those shown for the following date.
Note.—“Short-term obligations” are those payable on demand, or
having an original maturity of 1 year or less.
A58
International Statistics □ June 1977
3.16 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States
By Country
Millions o f dollars, end o f period
Area and country
1973
1974
1975
Dec. 7
1 Total............................................................... 69,074
2 Foreign countries............................................. 67,119
94,847
91,676
1976
Nov.r
94,771
91,600
1977
Dec. r
Jan.
Feb.
Mar.*3
94,338 102,473 108,947 105,091 104,858 106,195 111,075
89,046 96,967 103,497 100,466 100,940 101,907 105,793
3 Europe........................................................... 40,742 48,667 48,813 43,988 42,478 46,923 43,765 43,584 44,342
754
607
373
332
401
161
607
Austria....................................................
4
348
499
2,376
2,085
2,411
Belgium-Luxembourg................................ 1,483 2,506 2,506 2,898
2,268
5
2,566
369
332
659
369
419
416
363
419
6
569
391
266
266
389
165
378
419
367
7
Finland....................................................
312
7,733
4,701
4,642
4,875
France..................................................... 3,483 4,287 4,287
4,590 4,827
8
4,357
5,304
13,227 9,420 9,429
5,495
5,418
5,965
9
4,676
284
248
421
389
248
378
403
346
10
302
1,072
2,577
2,858
2,703
11
Italy......................................................... 1,404 2,617
2,884
3,206
2,361
3,234
3,411
2,832
2,817
3,234
2,694
3,007
12
Netherlands.............................................. 2,886
3,181
566
1,040
996
740
785
793
13
965
1,040
746
195
206
172
534
310
310
239
14
Portugal...................................................
228
209
382
426
492
382
478
565
546
305
Spain.......................................................
560
15
2,286
1,420
1,613
1,138
1,138
1,693
1,593
Sweden....................................................
1,885
1,717
16
8,514
8,846
9,571
9,453
9,619
8,927
Switzerland.............................................. 3,377 9,986 10,139
17
85
152
118
152
82
88
166
98
18
88
8,996
7,584
6,886
8,399
7,559
9,999
United Kingdom....................................... 6,148
8,711 10,334
19
113
183
126
147
121
183
188
Yugoslavia...............................................
86
96
20
2,263
2,639
2,970
2,672
2,136
21
Other Western Europe1............................. 3,352 4,073 4,073
2,144
47
82
40
84
51
82
45
22
22
50
U.S.S.R....................................................
172
206
200
203
255
162
206
23
Other Eastern Europe...............................
110
178
3,076
3,520
4,519
3,944
4,784
4,815
24 Canada........................................................ 3,627 3,517
4,322
25 Latin America.............................................. 7,664 12,038 11,754 14,942 17,684 19,010 17,847 18,529 19,123
886
1,147
1,293
1,648
1,820
Argentina.................................................
924
886
1,538
26
1,889
1,054
1,827 2,654
1,979
2,789
27
852
1,448
2,439
2,200
Bahamas..................................................
1,034
1,227
1,292
1,034
1,168
1,432
1,272
Brazil.......................................................
860
28
1,108
317
325
276
315
302
335
Chile........................................................
158
276
403
29
1,090
305
417
922
1,152
30
305
1,017
247
1,201
Colombia.................................................
6
7
6
6
6
7
6
31
Cuba........................................................
7
6
2,710
1,770 2,066
2,860 2,848
2,782
32
1,770
2,745
1,296
Mexico....................................................
510
1,099
1,188
1,140
909
1,002
33
Panama....................................................
282
488
1,001
272
244
244
243
257
34
272
228
246
Peru.........................................................
135
172
238
245
250
239
35
165
241
Uruguay...................................................
120
147
3,289
3,009
3,060 2,986
2,909
36
3,413
3,413
2,927
Venezuela................................................. 1,468
1,494
1,740
2,225
1,316
1,740 2,033
37
884
1,316
2,428
Other Latin American republics.................
157
158
129
140
151
157
38
158
162
71
Netherlands Antilles2................................
1,890 2,139 2,223
589
1,995
1,507
39
519
2,565
359
Other Latin America................................
40 Asia............................................................. 10,839 21,073 21,130 21,539 28,982 28,461 29,789 29,258 29,604
59
47
50
123
47
47
52
41
50
38
China, People’s Republic of (Mainland)__
1,092
818
1,025
985
1,058
1,158
42
1,056
757
818
China, Republic of (Taiwan).....................
859
530
623
892
941
1,039
372
530
43
1,018
Hong Kong..............................................
910
510
126
559
44
648
538
India........................................................
85
261
261
369
314
695
340
546
1,221
1,221
480
45
Indonesia.................................................
133
325
430
389
386
385
547
509
46
Israel........................................................
327
386
47
Japan....................................................... 6,967 10,897 10,931 10,218 14,736 14,380 14,481 13,358 13,271
384
324
483
384
390
437
448
382
48
Korea......................................................
195
698
606
627
602
554
747
652
49
515
747
Philippines................................................
333
252
275
313
312
244
301
333
247
50
Thailand...................................................
4,623
9,029
6,461
8,124
8,073
9,276
9,987
4,633
Middle East oil-exporting countries3..........
51
1,245
844
867
1,373
1,377
1,388
1,346
1,20252
813
Other4......................................................
3,373
2,207
2,406
3,551
2,281
2,300
2,285
53 Africa.......................................................... 1,056 3,551
343
209
103
111
333
244
250
54
103
35
Egypt.......................................................
97
38
68
72
88
105
94
11
38
Morocco..................................................
55
169
132
143
211
130
155
136
114
130
56
South Africa............................................
84
63
64
35
48
42
84
Zaire........................................................
87
39
57
2,814 2,239
1,322
1,033
2,814
1,116
1,132
965
Oil-exporting countries5............................
58
491
520
585
609
383
728
59
383
808
801
Other4.....................................................
60
61
62
Other countries.............................................
Australia..................................................
All other..................................................
63 Nonmonetary international and regional
organizations................................................
64 International................................................
65 Latin American regional...............................
66 Other regional6............................................
For notes see bottom o f p. A59.
Apr.p
45,038
509
2,607
809
306
4,748
4,490
350
2,625
2,924
906
184
501
2,047
8,813
81
10,695
111
2,133
41
159
4,823
20,528
1,845
4,006
1,225
329
1,253
7
2,699
1,008
255
263
2,440
2,297
173
2,729
30,471
67
1,123
993
648
888
436
13,071
430
624
308
10,398
1,485
2,572
242
91
176
28
1,149
886
3,131
59
2,742
89
2,742
89
2,831
2,128
1,598
2,019
2,339
2,348
2,231
2,361
1,955
3,171
5,506
5,109
160
237
5,450
4,625
3,918
4,288
5,282
1,627
272
57
3,171
2,900
202
69
5,293
2,900
202
69
5,091
136
223
4,275
160
190
3,599
132
187
3,965
136
186
5,001
99
181
3,190
2,831
2,014
114
5,064
187
42
1,486
112
1,911
108
2,224
116
2,231
118
2,101
130
2,223
138
Bank-reported Data
A 59
3.17 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Supplemental “Other” Countries 1
Millions o f dollars, end o f period
1974
1975
1976
1974
Apr.
38
43
39
69
40
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Apr.
7
21
29
17
20
29
36
34
36
14
55
25
13
11
18
11
42
14
19
32
17
13
66
44
13
10
3
10
65
28
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
120
171
260
38
99
41
133
43
104
69
149
150
128
177
33
69
49
89
43
12
44
116
449
177 49
170
197
100
627 1,311 2,284 1,874
Other Western Europe:
Cyprus.....................
Iceland....................
Ireland, Republic of..
Other Eastern Europe:
Bulgaria................................
Czechoslovakia......................
German Democratic Republic.
Hungary................................
Poland..................................
Rumania...............................
Other Latin American republics:
Bolivia...............................
Costa Rica.........................
Dominican Republic...........
Ecuador.............................
El Salvador........................
Guatemala.........................
Haiti..................................
Honduras...........................
Jamaica.............................
Nicaragua..........................
Paraguay............................
Surinam2...........................
Trinidad and Tobago..........
Other Latin America:
Bermuda...............
British West Indies.
Dec.
Dec.
Dec.
1
2
3
131
Dec.
LONG-TERM LIABILITIES TO FOREIGNERS
Millions of dollars, end of period
Holder, and area or country
1973
1974
Apr.
Dec.
19
50
49
4
30
5
180
92
22
118
215
13
70
41
54
31
4
39
2
117
77
28
74
256
13
62
54
41
34
3
20
2
132
105
34
89
c344
9
33
57
13
4
37
1
140
396
33
189
280
23
66
76
13
11
32
33
3
14
21
23
38
18
60
23
62
19
53
1
12
30
29
22
78
70
45
76
37
63
1
17
18
33
50
14
41
27
10
46
77
1
22
47
New Zealand.............
Dec.
95
18
7
31
39
2
4
11
19
13
22
All Other:
Apr.
18
21
65
4
22
3
126
63
25
91
245
14
126
Other Asia:
25 Afghanistan...............
26 Bangladesh................
27 Burma.......................
28 Cambodia..................
29 Jordan.......................
34 30 Laos.........................
21 31 Lebanon....................
32 Malaysia....................
33 Nepal........................
34 Pakistan....................
35 Singapore..................
36 Sri Lanka (Ceylon)....
37 Vietnam....................
133
141
Other Africa:
275 38 Ethiopia (incl. Eritrea),
319 39 Ghana.......................
178 40 Ivory Coast...............
397 41 Kenya.......................
47 42 Liberia......................
137 43 Southern Rhodesia....
35 44 Sudan........................
119 45 Tanzania...................
49 46 Tunisia......................
47 Uganda.....................
i 67 48 Zambia......................
36
42
29
20
43
45
2 Surinam included with Netherlands Antilles until January 1976.
1 Represents a partial breakdown of the amounts shown in the “Other”
categories on Table 3.16.
3.18
1976
Area and country
Area and country
Reported by Banks in the United States
1976
1975
1977
Oct. r
Dec. r
Jan. r
Feb.
Mar.p
Apr.p
1,462
1
2 Nonmonetary international and regional
organizations................................................
3 Foreign countries..............................................
4 Official institutions, including central banks. ..
5 Banks, excluding central banks.....................
6 Other foreigners...........................................
Area or country:
7 Europe........................................................
8
9
United Kingdom.......................................
10 Canada........................................................
11 Latin America..............................................
12 Middle East oil-exporting countries t.............
13
Other Asia2..............................................
14 African nil-exporting countries3....................
15 Other Africa4...............................................
16
Nov. r
All other countries.......................................
1,285
1,812
2,328
2,324
2,408
2,352
2,297
2,315
2,460
761
700
310
291
100
822
464
124
261
79
415
1,397
931
364
100
338
1,991
1,312
501
178
313
2,011
1,311
526
173
264
2,144
1,352
588
204
263
2,090
1,262
604
224
248
2,049
1,192
627
230
262
2,053
1,163
648
242
250
2,211
1,313
631
267
470
159
66
8
132
226
146
59
19
115
94
7
*
1
*
330
214
66
23
140
894
8
*
1
*
499
310
101
28
151
1,286
25
*
517
309
127
26
152
1,239
75
*
537
313
134
29
230
555
313
144
31
244
1,251
96
*
1,186
67
*
1
580
296
122
29
267
1,104
67
*
2
591
354
123
37
263
1,091
67
*
2
583
304
131
35
264
1,259
68
*
2
1
1
1
4
1
1
1
82
1
7
4 Includes African oil-exporting countries until December 1974.
1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Includes Middle East oil-exporting countries until December 1974.
3 Comprises Algeria, Gabon, Libya, and Nigeria.
Note.—Long-term obligations are those having an original maturity
of more than 1 year.
NOTES TO TABLE 3.16:
1 Includes Bank for International Settlements.
2 Surinam included with Netherlands Antilles until January 1976.
3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
4 Includes oil-exporting countries until December 1974.
5 Comprises Algeria, Gabon, Libya, and Nigeria.
6 Asian, African, and European regional organizations, except BIS,
which is included in “Other Western Europe.”
7 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable with
those shown for the preceding date; figures in the second column are
comparable with those shown for the following date.
A60
International Statistics n June 1977
3.19 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States
By Country
Millions o f dollars, end o f period
Area and country
1973
1974
1976
1975
Oct.r
1977
Nov.r
Dec.r
Jan.r
Feb.
Mar.p
Apr.P
1
20,723 39,056 50,231 60,986 63,313 69,126 63,719 63,447 65,196 65,814
2 Foreign countries............................................. 20,723 39,055 50,229 60,981 63,307 69,121 63,712 63,442 65,189 65,809
6,255
8,987 10,435 10,790 12,162 10,486 10,764 10,887 12,026
3 Europe......................................................... 3,970
11
21
15
42
54
4
Austria....................................................
44
41
42
58
63
384
352
504
5
147
501
662
554
Belgium-Luxembourg................................
611
570
470
46
49
64
48
6
Denmark.................................................
129
85
72
64
67
83
122
128
Finland....................................................
108
137
7
141
136
137
141
131
126
621
673
1,471
1,096
8
France.....................................................
1,098
1,448
1,246
1,372
1,343
1,510
589
436
311
9
Germany..................................................
585
577
563
511
667
590
575
64
49
35
10
Greece.....................................................
88
76
79
57
85
54
70
345
370
316
Italy.........................................................
733
11
877
929
875
802
870
946
133
348
300
12
Netherlands.............................................
399
240
304
246
510
252
380
72
119
71
13
79
Norway....................................................
85
124
98
127
142
133
23
20
16
14
46
Portugal...................................................
53
65
80
90
98
90
222
196
249
264
15
Spain.......................................................
304
429
362
375
291
363
180
167
153
16
101
Sweden....................................................
93
111
112
85
75
116
335
237
176
17
Switzerland...............................................
499
511
482
539
530
496
496
15
10
86
18
Turkey.....................................................
125
140
173
199
207
274
291
2,580 4,718
19
5,376
5,591
United Kingdom....................................... 1,459
6,158 4,960 4,671
5,218
5,939
22
38
20
10
37
Yugoslavia...............................................
38
45
60
64
37
31
22
27
25
21
49
Other Western Europe..............................
53
52
53
60
56
51
46
103
46
22
U.S.S.R....................................................
83
103
99
82
95
104
108
131
108
44
23
128
Other Eastern Europe...............................
132
130
178
175
177
163
2,776
2,817
1,955
24 Canada.......................................................
3,129
3,136
3,100
2,944
3,512
3,737
3,685
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
Latin America..............................................
Argentina.................................................
Bahamas..................................................
Brazil.......................................................
Chile.......................................................
Colombia.................................................
Cuba.......................................................
Mexico....................................................
Panama....................................................
Peru.........................................................
Uruguay..................................................
Venezuela.................................................
Other Latin American republics.................
Netherlands Antilles1................................
Other Latin America................................
Asia.............................................................
5,900
499
883
900
151
397
12
1,373
274
178
55
518
493
13
154
8,224
12,377
720
3,405
1,418
290
713
14
1,972
505
518
63
704
852
62
1,142
16,057
22
223
14
157
255
12,518
955
372
458
330
441
736
258
21
102
491
10,776
1,561
384
499
524
684
855
1,228
31
140
147
16
88
155
6,398
403
181
273
392
158
111
18
329
98
115
185
Other countries.............................................
286
565
Australia..................................................
All other..................................................
63 Nonmonetary international and regional
organizations................................................
35
5
129
61
243
43
1
466
99
*
1 Includes Surinam until January 1976.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
1,203
7,570
2,221
360
689
13
2,802
1,052
583
51
1,086
967
49
1,885
16,226
4
500
China, People’s Republic of (Mainland). . .
China, Republic of (Taiwan).....................
Hong Kong..............................................
India.......................................................
Indonesia.................................................
Israel.......................................................
Japan.......................................................
Korea......................................................
Philippines...............................................
Thailand..................................................
Middle East oil-exporting countries2..........
Other3.....................................................
Africa.........................................................
Egypt.......................................................
Morocco..................................................
South Africa.............................................
Zaire.....................................................
Oil-exporting countries4............................
Other3.....................................................
388
20,532
101
9
545
34
231
308
609
535
73
1
29,275
902
12,587
3,125
350
517
13
3,211
1,119
638
28
1,338
1,037
41
4,369
31,010
858
14,021
3,254
358
523
14
3,290
781
630
35
1,512
1,069
43
4,623
16,099 • 16,365
5 \
3
34,060
962
31,459
937
13,872
3,456
370
593
13
3,366
760
737
41
1,296
1,127
45
4,848
31,487
32,055
31, 758
15,340
3,378
396
575
13
3,419
1,021
690
38
1,552
1,140
40
5,495
17,765
16,686
4
15,471
30
1,089
265
23
55
337
9,472
1,574
479
446
1 050
’651
16,118
5
15,759
1,028
229
28
54
344
10,579
1,710
592
421
981
715
1,124
317
32
53
328
9,486
1,736
463
491
1,389
’693
78
1,099
337
24
41
287
9,397
1,807
490
468
1,095
’636
1,613
1,570
867
14,102
3,145
379
598
13
3,332
869
739
39
1,260
1,120
41
4,985
991
208
64
117
320
10,534
1,555
478
415
765
647
1,099
267
j
48
|
120
1 330
! 10,428
1,577
495
414
1,082
503
3
987
361
41
76
554
10,992
1,722
559
422
1,312
’735
1,382
1,394
1,486
1,519
1,478
661
612
502
549
450
99
618
110
729
604
6
5
914
15,439
2,951
357
544
13
3,294
849
733
39
1,241
1,132
41
4,509
106
8
772
14
215
266
558
103
5
109
14
748
25
213
284
132
13
763
29
256
293
151
19
798
16
238
298
512
105
7
126
13
797
11
249
282
149
26
802
10
343
283
873
14,150
3,189
419
565
13
3,301
753
756
35
1,180
1,076
54
5,394
146
35
783
8
289
309
779
663
116
1,011
125
5
6
5
3 Includes oil-exporting countries until December 1974.
4 Comprises Algeria, Gabon, Libya, and Nigeria,
892
119
Bank-reported Data
3.20
SHORT-TERM CLAIMS ON FOREIGNERS
By Type of Claim
Millions of dollars, end of period
Type
1973
A61
Reported by Banks in the United States
1974
1976
1975
Oct. r
Nov.r
1977
Dec. r
Jan.r
Feb.
Mar.p
Apr.p
1
20,723
39,056
50,231
60,986
63,313
69,126
63,719
63,447
65,196
65,814
2 Payable in dollars............................................
20,061
37,859
48,683
59,271
61,508
67,481
61,987
61,488
63,298
64,129
7,660
11,287
13,194
16,191
16,141
18,300
16,072
16,234
15,783
16,473
Loans, total.................................................
3
4
5
6
Official institutions, including central banks.
Banks, excluding central banks..................
All other, including nonmonetary interna
tional and regional organizations............
7 Collections oustanding.................................
8 Acceptances made for accounts of foreigners...
9 Other claims1..............................................
10 Payable in foreign currencies.............................
11 Deposits with foreigners...............................
12 Foreign government securities, commercial
and finance paper.....................................
13 Other claims................................................
284
4,538
2,838
4,307
4,160
3,935
381
7,332
613
7,665
1,451
11,076
1,251
9,334
935
9,764
784
9,739
741
10,616
3,574
4,916
5,118
5,586
11,461
26,033
5,773
5,487
5,467
11,147
19,054
5,628
11,422
28,316
5,846
12,367
30,968
5,833
12,018
28,064
5,535
5,868
12,009
27,378
5,259
6,192
12,793
28,529
5,116
6,306
12,979
28,370
662
1,196
1,368
1,715
1,805
1,645
1,732
1,959
1,897
1,686
428
669
656
1,052
1,084
1,063
1,126
1,091
119
115
289
238
340
372
113
550
89
632
89
493
145
460
272
596
1,100
323
474
332
490
LONG-TERM CLAIMS ON FOREIGNERS
Millions of dollars, end of period
Type, and area or country
1,262
9,628
5,247
5,637
11,237
9,689
1 Includes claims of U.S. banks on their foreign branches and claims
of U.S. agencies and branches of foreign banks on their head offices and
foreign branches of their head offices.
Note.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans
3.21
1,055
10,018
1973
863
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.
Reported by Banks in the United States
1974
1976
1975
1977
Oct.r
1
2
3
4
5
6
5,996
By type:
Dec. r
Jan.r
Feb.
Mar.P
Apr.?
12,201
12,481
7,179
9,536
11,320
11,596
11,660
11,684
11,829
Payable in dollars.........................................
5,924
7,099
9,419
11,181
11,449
11,512
11,534
11,618
12,012
12,280
Loans, total..............................................
5,446
6,490
8,316
9,672
9,846
9,935
9,953
10,426
10,557
6,301
1,577
1,404
2,178
6,371
1,581
10,131
Official institutions, including central banks
Banks, excluding central banks...............
All other, including nonmonetary interna
tional and regional organizations........
7 Other long-term claims................................
8 Payable in foreign currencies.........................
By area or country:
9 Europe........................................................
10 Canada........................................................
11 Latin America.............................................
12 Asia.............................................................
13
Japan.......................................................
14
Middle East oil-exporting countries1..........
15
Other Asia2.............................................
16 Africa..........................................................
17
Oil-exporting countries 3............................
Other4.....................................................
18
19
Nov. r
All other countries5.....................................
1,156
591
3,698
478
1,324
929
4,237
609
1,312
2,115
6,245
1,509
1,367
2,170
6,310
1,603
1,422
2,212
1,535
2,218
6,377
1,487
1,625
2,192
6,609
1,585
1,648
2,218
6,691
1,723
72
80
116
139
147
148
150
211
190
201
1,271
490
2,116
1,908
501
2,614
2,704
555
3,468
3,180
570
4,565
3,283
590
4,694
3,232
586
4,806
3,309
518
4,878
3,362
536
4,906
3,616
566
4,908
3,689
558
4,990
1,582
1,619
1,795
296
220
1,896
1,881
1,882
1,835
1,841
1,896
1,964
856
876
206
251
1,331
355
355
181
258
384
977
366
62
305
171
1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Includes Middle East oil-exporting countries until December 1974.
1,351
1,567
5,399
1,103
1,279
747
151
596
267
376
171
1,348
839
364
141
1,376
888
387
146
1,349
883
383
117
1,334
259
580
269
619
264
619
201
655
271
261
269
288
363
123
1,356
417
152
1,327
416
181
1,367
890
953
670
211
678
228
725
308
327
327
3 Comprises Algeria, Gabon, Libya, and Nigeria.
4 Includes oil-exporting countries until December 1974.
5 Includes nonmonetary international and regional organizations.
A62
3.22
International Statistics □ June 1977
FO R E IG N BRANCHES O F U.S. BANKS
Millions of dollars, end of period
Asset account
1973
1974
Balance Sheet D ata
1976
1975
Sept.r
Oct.r
1977
Nov.r
Dec.r
Jan.r
Feb.
Mar.P
All foreign countries
1 Total, all currencies........................ 121,866
5,091
2 Claims on United States...............
1,886
3
Parent bank.............................
3,205
4
Other......................................
5 Claims on foreigners.................... 111,974
19,177
Other branches of parent bank
6
7
Other banks............................. 56,368
2,693
8
Official institutions...................
9
Nonbank foreigners................. 33,736
4,802
10 Other assets................................
151,905
176,493
199,893
206,454
207,552
215,642
222,886
6,743
6,654
9,968
6,863
3,105
7,639
4,359
3,281
219,235
7,999
4,435
3,564
212,180
6,900
6,563
7,061
7,252
138,712
163,391
186,217
189,358
192,706
204,194
198,008
201,148
6,294
105,969
6,359
132,901
167,646
162,941
47,760
77,702
11,188
64,498
7,434
165,317
208,217
79,445
41,174
74,820
9,208
61,015
7,022
150,484
4,599
6,603
6,408
7,705
6,283
6,773
6,853
73,018
96,209
123,496
154,922
161,755
1,828
3,157
2,997
12
13
14
15
16
17
18
19
20
Claims on United States...............
Parent bank.............................
Other......................................
Claims onforeigners....................
Other branches of parent bank..
Other banks.............................
Official institutions..................
Nonbank foreigners.................
Other assets................................
1,848
2,751
12,799
39,527
1,777
18,915
4,464
2,435
27,559
60,283
4,077
46,793
4,428
2,175
19,688
45,067
3,289
28,164
3,665
3,078
34,508
69,206
5,792
53,886
3,628
2,780
28,478
55,319
4,864
34,835
3,273
3,381
3,738
3,323
7,128
156,101
42,729
77,260
9,550
63,168
7,207
156,544
6,295
9,623
6,818
2,805
7,297
4,296
3,001
4,375
3,330
140,943
143,124
145,933
156,738
152,746
3,353
3,314
3,203
3,911
39,816
60,793
9,853
44,460
3,622
3,210
3,085
33,358
58,901
7,906
40,779
3,246
41,812
76,191
9,205
62,149
2,979
3,583
34,051
59,355
7,885
41,833
34,382
60,327
8,298
42,926
45,877
83,606
10,608
64,104
7,042
37,832
66,287
9,017
43,602
46,083
77,225
10,835
63,866
7,609
2,940
3,343
38,360
60,749
9,468
44,170
3,692
3,081
3,638
3,614
48,644
81,457
11,766
66,350
7,417
172,133
3,591
3,262
40,921
64,475
10,469
45,890
3,525
United Kingdom
21 Total, all currencies.........................
22 Claims on United States...............
23
Parent bank.............................
24
Other......................................
61,732
69,804
74,883
73,589
76,854
77,249
81,466
76,482
78,708
81,268
1,789
738
1,051
3,248
2,412
116
2,392
2,036
3,256
3,426
3,354
2,262
1,772
2,311
25
26
27
28
29
Claims offoreigners.....................
57,761
64,111
70,331
69,217
17,745
34,405
1,138
15,929
18,358
35,336
1,211
16,257
30 Other assets................................
31 Total payable in U.S. dollars...........
32
33
Parent bank.............................
34
Other......................................
35 Claims on foreigners....................
36
Other branches of parent bank..
37
Other banks.............................
Official institutions...................
38
39
Nonbank foreigners.................
40 Other assets................................
Other branches of parent bank..
Other banks.............................
Official institutions..................
Nonbank foreigners.................
8,773
34,442
735
13,811
1,449
943
1,081
955
17,557
35,904
881
15,990
2,183
40,323
12,724
32,701
788
17,898
2,445
49,211
2,159
57,361
2,335
54,547
1,642
3,146
2,273
37,817
44,694
54,121
730
912
6,509
23,389
510
7,409
865
2,468
678
10,265
23,716
610
10,102
1,372
1,445
828
15,645
28,224
648
9,604
967
2,413
843
71,162
2,538
888
71,477
2,376
978
75,859
19,753
38,089
1,274
16,743
2,436
57,161
17,949
35,846
1,168
16,514
2,345
57,699
1,902
3,124
51,782
53,112
1,064
838
15,195
25,866
862
9,859
863
2,406
719
15,829
26,421
912
9,950
925
1,357
905
71,995
991
781
74,713
1,282
1,029
76,865
2,253
61,587
19,483
34,827
1,377
16,309
2,225
57,758
21,450
35,517
1,615
16,130
2,224
60,038
21,115
37,074
1,606
17,070
2,092
62,353
3,313
3,275
2,185
1,684
2,173
53,541
57,488
2,523
789
15,405
27,008
817
10,311
845
2,374
902
1,352
833
988
696
1,277
896
17,249
28,983
846
10,410
824
17,183
26,184
1,110
10,258
838
54,735
57,492
59,342
19,114
26,767
1,340
10,271
862
18,712
28,352
1,310
10,968
839
Bahamas and Caymans
41 Total, all currencies........................
42 Claims on United States...............
43
Parent bank.............................
44
Other......................................
23,771
31,733
45,203
60,804
63,578
61,886
66,774
66,479
66,134
69,524
2,210
2,464
3,229
3,356
5,492
2,970
3,506
3,192
3,722
3,395
45
46
47
48
49
Claims on foreigners.....................
21,041
28,453
41,040
56,279
56,847
57,683
62,050
61,539
60,999
64,796
1,169
1,239
1,232
8,144
25,354
7,101
21,451
1,217
1,748
1,413
9,060
25,351
7,495
22,890
1,333
51 Total payable in U.S. dollars...........
21,937
28,726
41,887
56,650
59,289
57,799
62,705
62,266
61,605
64,944
50
Other branches of parent bank..
Other banks.............................
Official institutions...................
Nonbank foreigners.................
Other assets................................
317
1,893
1,928
9,895
1,151
8,068
520
1,081
1,383
3,478
11,354
2,022
11,599
815
1,477
1,752
5,411
16,298
3,576
15,756
933
1,283
2,072
7,250
22,471
6,059
20,498
3,519
1,973
7,296
22,175
6,040
21,336
845
2,126
7,389
22,481
6,485
21,327
1,141
2,365
811
2,381
8,463
23,836
7,004
22,236
1,418
2,303
7,815
23,435
7,225
22,523
1,073
2,321
Overseas Branches
A 63
3.22 Continued
Liability account
1973
1974
1976
1975
Sept.r
Oct.r
1977
Nov.r
Dec. r
Jan.r
Feb.
Mar.?
All foreign countries
52 Total, all currencies.....................
53 To United States......................
54
Parent bank.........................
55
Other...................................
121,866
151,905
176,493
199,893
206,454
207,552
219,235
212,180
215,642
222,886
5,610
11,982
20,221
29,574
28,984
30,289
32,836
30,406
30,514
34,304
56
57
58
59
60
61
111,615
132,990
149,815
163,772
170,625
170,509
179,666
174,896
178,270
181,721
6,933
6,456
40,119
75,370
23,731
24,552
6,547
6,754
6,879
6,858
47,558
79,956
26,194
28.013
6,861
80,374
107,890
135,907
167,499
170,392
177,029
5,027
11,437
To foreigners...........................
Other branches of parent bank
Other banks.........................
Official institutions...............
Nonbank foreigners..............
Other liabilities........................
62 Total payable in U.S. dollars........
1,642
3,968
18,213
65,389
10,330
17,683
4,641
5,809
6,173
26,941
65,675
20,185
20,189
12,165
8,057
34,111
72,259
22,773
20,672
18,957
10,617
17,869
11,115
19,058
11,231
41,692
78,216
23,967
26,634
19,893
12,942
44,302
83,671
25,828
25,864
18,723
11,683
19,260
11,253
155,199
41,044
79,287
25,019
25,275
6,844
160,510
161,003
6,733
173,007
19,503
28,685
28,210
29,399
32,049
29,470
29,601
33,362
44,283
79,278
25,771
25,564
46,322
78,044
26,631
21.013
13,291
27,273
63
64
65
To United States......................
66
67
68
69
70
To foreigners...........................
Other branches of parent bank
Other banks.........................
Official institutions...............
Nonbank foreigners..............
12,554
43,641
7,491
9,502
73,189
92,503
112,879
123,131
128,901
128,181
137,443
134,268
137,149
140,088
71
Other liabilities........................
2,158
3,951
3,526
3,383
3,400
3,423
3,516
3,761
3,642
3,579
81,466
76,482
78,708
81,268
5,997
5,101
4,871
73,228
69,202
Parent bank.........................
Other...................................
1,477
3,550
5,641
5,795
19,330
43,656
17,444
12,072
11,939
7,564
28,217
51,583
19,982
13,097
18,624
10,060
32,921
53,821
20,787
15,602
17,633
10,576
33,850
56,677
21,910
16,463
18,821
10,578
33,993
55,869
20,924
17,394
19,680
12,368
37,033
60,521
22,877
17,011
18,475
10,996
37,703
56,696
23,038
16,831
19,015
10,585
36,369
55,965
23,598
18,217
20,761
12,601
40,591
57,779
23,406
18,312
United Kingdom
72 Total, all currencies.......................
73 To United States........................
74
Parent bank...........................
75
Other.....................................
61,732
69,804
74,883
73,589
76,854
2,431
3,978
5,646
5,379
5,310
1,468
3,842
1,459
4,061
76
77
78
79
80
To foreigners.............................
57,311
63,409
67,240
66,026
69,151
69,368
81
Other liabilities.........................
1,997
6,788
31,015
16,389
11,834
2,184
2,394
2,360
39,689
49,666
57,820
55,625
58,031
58,757
2,173
3,744
5,415
5,183
5,152
5,330
52,017
52,503
83
84
85
86
87
88
89
90
91
Other branches of parent bank.
Other banks...........................
Official institutions.................
Nonbank foreigners...............
To United States........................
Parent bank...........................
Other.....................................
To foreigners.............................
Other branches of parent bank.
Other banks...........................
Official institutions.................
Nonbank foreigners...............
Other liabilities..........................
136
2,295
3,944
34,979
8,140
10,248
1,990
113
2,060
510
3,468
4,762
32,040
15,258
11,349
2,418
484
3,261
2,122
3,523
6,494
32,964
16,553
11,229
2,083
3,332
1,442
3,938
1,404
3,779
6,826
32,488
17,567
12,270
1,448
3,704
2,519
22,051
5,923
6,152
3,256
20,526
13,225
7,587
5,442
23,330
14,498
8,176
51,447
49,579
5,790
20,526
14,418
8,846
5,742
21,493
15,550
9,233
870
1,328
959
862
862
36,646
44,594
77,249
5,520
6,783
33,690
16,181
12,713
1,447
3,883
5,520
23,040
14,283
9,660
924
1,198
4,798
7,092
36,259
17,273
12,605
1,211
3,889
1,191
3,681
71,523
6,365
1,537
4,828
72,665
7,981
32,097
18,204
13,242
2,241
7,663
32,336
16,975
12,228
2,179
2,313
2,238
63,174
59,009
61,331
63,346
5,849
4,876
4,704
6,189
53,230
55,675
56,283
1,182
4,666
56,372
1,195
3,681
1,166
3,538
8,252
33,830
17,711
12,872
1,506
4,683
5,874
25,527
15,423
9,547
953
6,573
22,137
15,184
9,336
903
66,77A
66,479
66,134
69,524
24,164
6,906
22,211
16,345
10,213
953
7,188
23,841
15,817
9,437
874
Bahamas and Caymans
23,771
96
97
98
99
100
To foreigners.............................
21,747
101
Other liabilities..........................
451
778
1,106
1,125
1,053
1,099
1,154
1,413
1,295
1,385
102 Total payable in U.S. dollars..........
22,328
28,840
42,197
57,282
60,042
58,372
63,417
62,851
62,416
65,753
Other branches of parent bank.
Other banks...........................
Official institutions.................
Nonbank foreigners...............
1,573
307
1,266
5,508
14,071
492
1,676
31,733
45,203
60,804
63,578
92 Total, all currencies.......................
93 To United States........................
Parent bank...........................
94
Other.....................................
95
4,815
2,636
11,147
7,628
3,520
20,814
2,180
26,140
32,949
38,864
7,702
14,050
2,377
2,011
10,569
16,825
3,308
2,248
15,243
5,751
11,854
20,937
2,712
3,361
61,886
20,167
20,676
22,723
21,689
21,672
42,358
40,111
42,897
43,376
43,166
14,000
6,167
13,381
22,615
2,784
3,577
14,797
5,879
12,931
19,923
3,198
4,059
16,163
6,560
13,801
21,758
3,573
3,765
15,191
6,499
13,551
22,256
3,607
3,963
15,241
6,431
14,406
21,006
3,314
4,439
17,108
7,056
43,974
14,931
20,571
3,302
5,169
A64
International Statistics a June 1977
3.23 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions
Millions o f dollars
Country or area
1975
1976
1977
Jan.—
Apr.P
1976
Oct.
Nov.
1977
Dec.
Jan.
Feb.
Mar.p
Apr.P
16,307
13,014
17,813
18,748
18,450
13,746
14,929
16,024
2,300
14
2,504
14
2,870
14
3,505
14
1,112
Holdings, end of period 4
1 Estimated total...
2 Foreign countries.
3 Europe..........................
Belgium-Luxembourg..
4
Germany....................
5
Netherlands...............
6
Sweden......................
7
Switzerland................
8
United Kingdom........
9
Other Western Europe.
10
Eastern Europe..........
11
12 Canada.
13 Latin America...........................
14
Venezuela..............................
15
Other Latin America republics.
16
Netherlands Antilles 1............
17 Asia......
Japan.
18
19 Africa.............................................
20
All other......................................
21 Nonmonetary international and regional
organizations...............................
22 International.................
23 Latin American regional.
7,703
7,372
15,798
14,487
11,954
15,063
15,798
12,765
12,337
12,765
1,085
2,330
2,064
2,293
2,330
13
215
16
276
55
363
143
4
395
14
764
288
191
261
485
323
4
13
535
283
242
267
403
317
4
14
746
288
192
291
433
325
4
256
312
149
35
118
390
160
4
32
113
250
302
149
28
115
5,370
3,271
321
*
9,323
2,687
8,808
3,093
8,950
2,587
543
*
531
*
543
*
331
3,033
2,905
128
2,533
2,504
28
2,726
2,655
71
14
764
288
191
261
485
323
4
256
312
149
35
118
200
4
29
161
322
9
764
287
191
271
476
293
4
789
367
188
324
512
306
4
256
314
149
21
125
261
295
149
21
121
9,323
2,687
543
*
9,637
2,682
506
*
10,330
2,806
356
*
3,033
3,294
2,905
128
3,180
114
4,068
3,948
119
894
388
188
317
713
354
4
270
405
258
26
120
11,068
3,123
388
188
397
1,069
332
4
268
448
193
21
119
11,476
3,174
356
11
356
3,819
2,426
3,700
118
2,318
108
936
1,184
823
361
-298
1,094
23
Transactions, net purchases, or sales (— during period
),
24 Total..................
1,994
8,095
2,653
1,019
577
735
510
1,505
25 Foreign countries.
26 Official institutions.
27 Other foreign........
28 Nonmonetary international and regional
organizations................................
Memo: Oil-exporting countries
29 Middle East 2......................
30 Africa 3................................
1,814
1,612
202
5,393
5,116
276
3,259
2,682
578
283
227
56
383
340
43
428
421
6
249
229
21
731
709
23
180
2,702
-110
736
193
307
261
773
1,797
170
r3,887
221
1,505
-237
98
630
11
140
254
-37
505
-150
1 Includes Surinam until January 1976.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States). Data not available until 1975.
3 Comprises Algeria, Gabon, Libya, and Nigeria. Data not available
until 1975.
3.24
922
173
248 -1,392
408
-51
338
4 Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
Assets
1973
1974
1975
1976
Nov.
1977
Dec.
Jan.
Feb.
251
418
353
305
352
383
361
Assets held in custody:
2 U.S. Treasury securities1.............................. 52,070
3 Earmarked gold2......................................... 17,068
55,600
16,838
60,019
16,745
63,962
16,457
66,532
16,414
66,992
16,343
68,653
16,304
1 Deposits.........................................................
1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and in foreign currencies.
2 The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.
Mar.
349
Apr.
May
305
436
71,435 73,261
16,271 *•16,282
73,964
16,221
Note.—Excludes deposits and U.S. Treasury securities held for international and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
of the United States,
Investment transactions
A65
3.25 FOREIGN TRANSACTIONS IN SECURITIES
Millions o f dollars
Transactions, and area or country
1975
1976
1977
Jan.Apr.p
1976
Oct.
j Nov.
1977
Dec.
Jan.
Feb.
Mar.p
Apr.p
1,562
1,287
274
1,425
1,137
288
1,162
1,036
126
1,101
980
121
1,135
913
222
281
111
37
24
-35
-7
84
290
130
27
1
24
39
39
124
47
-10
-7
-5
23
36
30
14
50
-17
*
1
116
72
4
-4
-10
30
55
9
14
17
3
*
1
222
105
-6
38
-7
38
47
-5
21
97
5
*
-1
60
1
115
9
2
-17
8
4
100
46
*
2
U.S. corporate securities
Stocks:
Foreign purchases........................................
Foreign sales...............................................
3
Net purchases, or sales (—
)...........................
4,669
18,227
15,474
2,752
4
Foreign countries..........................................
5
6
7
8
9
10
Europe.....................................................
France..................................................
Germany..............................................
Netherlands..........................................
Switzerland...........................................
United Kingdom...................................
4,651
2,491
262
251
359
899
594
2,740
336
256
68
-199
-100
340
4,823
4,066
757
752
354
15
28
2
130
177
1
1
12
13
14
15
16
17
Canada....................................................
Latin America..........................................
Middle East1............................................
Other Asia2.............................................
Africa......................................................
361
-7
1,640
142
10
15
325
155
1,803
117
7
-4
42
53
264
37
*
3
18
12
5,408
4,642
766
1
2
1,226
1,321
977
1,025
-95
-49
-98
-251
-12
-16
-37
-95
-72
18
-17
126
28
-3
1
-50
-118
-25
-13
-29
-44
-5
1
25
64
-23
1
*
5
4
2
-6
-2
1
5
1
5,529
4,322
2,122
987
625
386
355
364
533
524
400
322
534
214
1,136
1,067
239
203
-10
-1
5
-5
-2
*
-1
29
156
3
-2
*
-9
110
24
5
4
3
-3
15
16
6
74
-8
-2
*
9
6
53
7
1
-20
13
54
7
27
-21
-43
-14
-2
78
73
8
-5
-4
2
15
8
11
-5
59
1
*
*
320
329
281
-3
4
-2
32
225
55
8
-7
-8
*
*
840
243
598
128
31
1,553
-35
5
1
1,207
1,248
92
49
-50
-29
158
23
96
94
1,179
-165
-25
-21
348
208
140
112
Nonmonetary international and regional
organizations......................................... -1,030
-41
67
64
-119
3
4
-9
-1
4
167
217
168
213
-400 -1,298
455
670
855
1,968
-402 -1,294
Nonmonetary international and regional
organizations.........................................
Bonds 3
18 Foreign purchases........................................
19 Foreign sales................................................
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
15,347
10,678
Net purchases, or sales (— ...........................
)
Foreign countries..........................................
Europe.....................................................
France..................................................
Germany..............................................
Netherlands..........................................
Switzerland...........................................
United Kingdom...................................
Canada....................................................
Latin America..........................................
Middle East1............................................
Other Asia2.............................................
Africa......................................................
Other countries........................................
1,795
113
82
-6
-8
117
-52
466
-15
-4
-10
74
385
69
7
539
-9
-2
*
75
-2
*
-3
31
43
-3
1
48
-6
-2
*
553
102
-5
-4
-7
-4
109
6
3
439
4
*
*
27
45
-40
-483
-488
-207
-265
42
-61
2
1
-62
187
249
-80
613
693
-142
-159
54
-93
35
-154
*
*
5
17
Foreign securities
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Stocks, net purchases, or sales (— ...................
)
Foreign purchases........................................
Foreign sales...............................................
Bonds, net purchases, or sales ( —
)....................
Foreign purchases........................................
Foreign sales...............................................
Net purchases, or sales (— of stocks and bonds..
)
Foreign countries.............................................
Europe........................................................
Canada........................................................
Latin America.............................................
Asia............................................................
Africa.........................................................
Other countries............................................
49 Nonmonetary international and regional
-322
1,937
2,259
-6,325 -8,652
4,932
2,383
8,708 13,584
-6,515 -8,973
-4,323 -7,078
-844
-53
-3,202 -5,168
3
-306
-700
-622
15
48
-416
-155
-189
1,541
1,730
-2,192
-1,898
1Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
2 Includes Middle East oil-exporting countries until 1975.
-229
655
883
-478
2,626
3,104
-707
-971
-172
-140
171
-244
1
12
-1
132
133
-367
452
819
-369
-282
-37
-301
13
34
1
9
-270
-10
-26
-28
-10
*
-197
-765
-140
-643
37
-24
2
3
-18
181
199
-30
818
848
-49
-338
-21
-298
25
-53
-1
9
265
-87
-132
-529
290
-109
130
238
-374
581
955
157
197
-18
599
617
-57
4
2
-94
69
25
*
2
-6
3 Includes State and local government securities, and securities of U.S.
Govt, agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.26
International Statistics □ June 1977
SHORT-TERM LIABILITIES TO A ND CLAIM S ON FO REIG N ER S
in the United States
Millions of dollars, end of period
Type, and area or country
1976
1975
Dec.
Mar.
June
Reported by Nonbanking Concerns
1975
Sept.
Dec.p
1976
Dec.
Mar.
Liabilities to foreigners
June
Sept.
Dec.p
Claims on foreigners
6,006
6,350
6,301
6,318
6A n
12,151
12,698
13,847
13,190
14,148
Payable in dollars.........................................
5,402
5,700
5,676
5,702
5,867
11,048
11,713
12,912
12,211
13,211
Payable in foreign currencies.........................
605
650
625
615
610
1,103
985
935
980
936
564
539
478
508
496
439
493
487
379
557
1
By type:
2
3
4
5
Deposits with banks abroad in reporter’s
Other.......................................................
By area or country:
6 Foreign countries.............................................
7 Europe.........................................................
Austria....................................................
8
9
Denmark.................................................
10
11
Finland....................................................
France.....................................................
12
Germany.................................................
13
Greece.....................................................
14
Italy.........................................................
15
16
Netherlands.............................................
17
Norway...................................................
Portugal..................................................
18
19
Spain.......................................................
Sweden....................................................
20
21
Switzerland..............................................
Turkey....................................................
22
23
United Kingdom......................................
24
Yugoslavia...............................................
25
Other Western Europe..............................
U.S.S.R...................................................
26
Other Eastern Europe...............................
27
28 Canada.......................................................
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Latin America..............................................
Argentina.................................................
Bahamas..................................................
Brazil......................................................
Chile.......................................................
Colombia.................................................
Cuba.......................................................
Mexico....................................................
Panama...................................................
Peru.........................................................
Uruguay..................................................
Venezuela.................................................
Other Latin American republics.................
Netherlands Antilles 1..............................
Other Latin America................................
Asia............................................................
China, People’s Republic of (Mainland)__
China, Republic of (Taiwan).....................
Hong Kong.............................................
India.......................................................
Indonesia.................................................
Israel.......................................................
Japan......................................................
Korea......................................................
Philippines...............................................
Thailand..................................................
Other Asia...............................................
Africa.........................................................
Egypt......................................................
Morocco..................................................
South Africa............................................
Zaire.......................................................
Other Africa............................................
Other countries.............................................
Australia..................................................
All other..................................................
65 Nonmonetary international and regional
organizations............................................
5,602
14
299
9
14
149
149
19
171
114
20
4
81
29
130
25
998
76
8
20
11
2,333
6,132
2,344
6
296
12
10
205
152
25
125
162
23
3
68
25
159
14
929
91
6
23
10
6,131
15
183
13
21
185
256
28
128
141
24
5
36
35
241
16
789
113
8
19
14
2,270
6,269 12,150 12,697 13,846 13,189 14,147
2,122
4,499
4,935
5,330
5,155
5,250
10
16
17
17
21
21
166
133
116
193
195
163
7
39
35
30
26
50
4
91
36
138
139
79
198
291
355
363
413
426
173
355
305
492
358
377
48
33
41
47
56
51
97
381
406
335
358
383
141
167
176
146
142
162
29
40
58
52
43
49
13
44
45
22
28
40
40
516
408
432
336
369
34
62
80
84
62
89
187
242
207
270
254
241
13
28
26
31
23
25
811
1,901
2,280
2,599 2,363
2,437
123
36
30
28
30
26
7
14
18
14
17
19
9
150
106
96
81
156
13
70
80
75
79
85
295
313
369
324
377
2,109
2,234
2,202
2,216
2,449
912
1,176
1,077
1,011
1,017
2,367
2,563
3,053
2,813
3,557
1,721
1,733
1,752
2,027
2,080
2,631
2,489
2,727
2,419
2,330
390
502
527
22
432
25
42
65
24
276
597
405
22
343
22
378
32
88
12
372
44
67
36
277
96
14
17
*
82
16
29
3
100
71
35
138
6
97
18
7
137
31
295
69
14
18
1,031
37
8
99
6
239
70
41
376
91
11
16
*
92
10
30
2
163
71
58
214
5
110
23
9
141
26
307
53
18
18
1,022
30
7
113
7
345
65
55
14
47
18
276
219
1Includes Surinam until 1976.
Note.—Reported by exporters, importers, and industrial and com-
6,055
13
233
12
7
159
228
29
116
170
22
3
51
24
213
20
846
108
7
10
16
2,286
42
330
90
15
19
*
72
12
31
3
184
95
55
130
8
124
28
10
133
34
290
62
18
11
1,035
32
12
246
41
251
53
16
11
*
74
10
32
3
222
100
68
129
7
129
33
11
144
32
275
85
28
23
1,260
38
260
65
17
13
*
95
34
25
4
219
137
10
101
20
112
40
23
136
39
228
77
53
24
1,326
58
667
409
36
49
1
362
91
41
4
178
159
12
301
65
164
111
39
140
54
1,130
263
96
22
549
48
883
475
27
47
1
332
84
38
4
156
170
7
292
35
100
66
60
155
42
1,161
105
106
20
638
43
1,150
462
46
57
1
332
101
39
4
186
184
10
437
23
215
104
51
160
53
1,169
131
114
19
691
39
925
417
26
66
1
352
83
35
22
215
179
9
444
11
136
88
53
193
48
1,008
142
93
23
624
44
1,368
682
34
59
1
332
74
42
5
194
270
9
442
23
199
96
55
209
41
912
120
86
22
567
27
43
54
36
438
36
9
78
28
257
390
10
80
23
207
28
12
83
25
230
407
10
93
24
256
28
10
87
21
245
50
18
57
19
76
141
133
155
178
171
186
208
1
1
1
1
1
102
39
97
36
100
56
112
67
106
65
mercial concerns and other nonbanking institutions in the United States.
Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their, affiliates.
Nonbank-reported Data
A67
3.27 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Large Nonbanking Concerns in the United States
Millions o f dollars, end o f period
1
Type and country
1973
1974
1975
1 Total..............................................................
By type:
2 Payable in dollars.........................................
3
Deposits...................................................
4
Short-term investments 1...........................
5 Payable in foreign currencies.........................
6
Deposits..................................................
7
Short-term investments 1...........................
3,164
3,357
2,625
2,660
540
697
429
268
510
246
1,118
765
589
306
386
1,350
967
390
398
252
1976
8
9
10
11
12
By country:
United Kingdom..........................................
Canada........................................................
Bahamas......................................................
Japan..........................................................
All other......................................................
2,588
37
435
105
2,591
69
i Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.
3.28
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.?
Mar.p
3,792
4,725
4,897
5,123
5,419
5,358
5,575
6,286
3,038
4,077
4,326
4,941
5,673
756
648
438
210
339
232
307
216
1,304
1,153
546
343
445
1,709
1,336
810
146
724
1,640
1,429
1,059
116
653
2,706
332
3,707
370
3,935
391
571
1975
Dec.
1976
Mar.
4,600
4,256
3,267
506
202
522
1,604
4,069
3,114
446
214
484
1,577
155
144
8 Latin America.................................................
9 Bahamas.....................................................
10 Brazil..........................................................
11 Chile...........................................................
12 Mexico.......................................................
13 Asia................................................................
14 Japan..........................................................
15 Africa.............................................................
16 All other 1......................................................
269
210
4
1
3
496
397
2
248
184
5
1
6
495
394
2
66
65
1 Includes nonmonetary international and regional organizations.
4,743
4,429
373
4,375
368
523
618
616
308
308
336
298
634
614
1,693
1,552
1,059
135
684
1,835
1,539
1,247
110
688
1,851
1,291
1,312
127
1,844
1,321
1,396
164
850
1,871
1,468
1,707
147
1,093
332
286
111
4,564
377
5,218
455
312
302
June
Reported by Nonbanking Concerns
1975
Sept.
Dec.p
Dec.
Liabilities to foreigners
1 Total..............................................................
2 Europe...........................................................
3 Germany.....................................................
4 Netherlands.................................................
5 Switzerland..................................................
6 United Kingdom..........................................
7 Canada...........................................................
4,802
4,213
387
Note.—Data represent the assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on
foreigners reported by nonbanking concerns in the United States and
are included in the figures shown in Table 3.26.
LONG-TERM LIABILITIES TO A ND CLAIMS ON FOREIGNERS
in the United States
Millions of dollars, end of period
Area and country
1977
3,935
2,992
425
214
467
1,493
166
2,820
406
270
327
1,445
111
3,725
222
157
5
1
6
489
388
2
64
230
132
5
1
7
498
402
2
64
1976
Mar.
June
Sept.
Dec.P
Claims on foreigners
3,507
2,697
396
258
260
1,407
4,977
1,026
37
217
59
396
5,177
973
34
219
56
349
5,034
984
35
211
56
365
86
1,426
1,473
241
138
5
1
15
423
397
2
58
1,634
8
170
315
216
669
90
168
55
1,770
7
182
312
209
685
91
214
61
1,516
4,971
953
73
211
54
298
1,511
4,910
910
72
156
57
297
1,534
1,602
37
164
306
187
710
85
163
59
1,547
37
171
244
219
737
80
165
58
1,520
36
203
248
195
771
80
189
58
A68
3.29
International Statistics □ June 1977
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Per cent per annum
Rate on May 31, 1977
Country
Month
effective
Per
cent
Argentina.....................
Austria.........................
Belgium........................
Brazil...........................
Denmark......................
Rate on May 31, 1977
Country
18.0
4.0
6.5
28.0
7.5
9.0
Feb.
June
May
May
May
Mar.
1972
1976
1977
1976
1977
1977
Per
cent
Netherlands................
Note.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with
3.30
10.5
3.5
15.0
5.0
4.5
3.5
Germany, Fed. Rep. of.
Rate on May 31, 1977
Country
Month
effective
Sept.
Sept.
Oct.
Apr.
June
May
1976
1975
1976
1977
1942
1977
Per
cent
6.0
8.0
2.0
8.0
5.0
United Kingdom.........
Sept.
Oct.
June
May
Oct.
1976
1976
1976
1977
1970
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Per cent per annum, averages of daily figures
1974
Country, or type
1976
1975
1976
1977
Dec.
1 Euro-dollars...................................................
2 United Kingdom............................................
3 Canada..........................................................
4 Germany.......................................................
5 Switzerland....................................................
6 Netherlands...................................................
7 France...........................................................
11.01
13.34
10.47
7.02
10.63
8.00
5.58
11.35
9.39
9.80
4.87
3.01
5.17
7.91
4.19
1.45
7.02
8.65
16.32
10.25
7.70
8 Italy..............................................................
9 Belgium.........................................................
10 Japan............................................................
10.37
6.63
11.64
Note.—Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits of 20 million francs and
3.31
Month
effective
Jan.
Feb.
5.01
14.27
8.51
4.82
1.98
6.51
10.55
17.13
10.73
8.00
5.14
13.53
8.24
5.08
11.56
7.78
5.13
10.31
7.63
4.70
1.24
6.18
10.02
15.68
8.49
7.50
4.64
1.68
6.04
9.81
15.86
7.59
7.50
4.70
2.88
5.73
9.87
16.57
7.07
7.20
Mar.
Apr.
May
5.16
8.59
7.58
4.57
2.61
4.89
9.33
16.26
7.01
6.46
5.80
7.63
7.44
4.43
3.98
3.03
9.13
15.49
6.94
5.75
over; and Japan, loans and discounts that can be called after being held
over a minimum of two month-ends.
FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
Country/currency
1974
1975
1976
1977
1976
Dec.
1 Australia/dollar............... 143.89
5.3564
2 Austria/shilling.................
3 Belgium/franc..................
2.5713
4 Canada/dollar.................. 102.26
16.442
5 Denmark/krone...............
6 Finland/markka............... 26.565
7 France/franc.................... 20.805
8 Germany/deutsche mark... 38.723
9 India/rupee...................... 12.460
10 Ireland/pound.................. 234.03
11 Italy/lira..........................
12 Japan/yen........................
13 Malaysia/ringgit...............
14 Mexico/peso....................
15 Netherlands/guilder..........
.15372
. 34302
41.682
8.0000
37.267
16 New Zealand/dollar.......... 140.02
18.119
18 Portugal/escudo. ..............
3.9506
19 South Africa/rand............ 146.98
20 Spain/peseta .....................
1.7337
14.978
22 Sweden/krona.................. 22.563
23 Switzerland/franc............. 33.688
24 United Kingdom/pound... 234.03
Memo:
25 United States/dollar 1.......
84.11
Jan.
Feb.
Mar.
Apr.
May
122.15
5.5744
2.5921
101.41
16.546
25.938
20.942
39.737
11.148
180.48
.12044
.33741
39.340
6.9161
37.846
105.29
5.9061
2.7483
98.204
17.145
26.315
20.055
41.965
11.296
167.84
108.53
5.8852
2.7249
98.985
16.967
26.313
20.108
41.792
11.231
171.24
109.04
5.8453
2.7114
97.295
16.891
26.169
20.083
41.582
11.285
171.03
109.94
5.8822
2.7258
95.125
17.038
26.296
20.075
41.812
11.313
171.74
110.53
5.9252
2.7509
95.103
16.710
24.899
20.133
42.119
11.310
171.90
110.31
5.9533
2.7700
95.364
16.638
24.530
20.190
42.394
11.320
171.85
92.179
19.193
3.1674
114.95
f .4634
94.839
18.946
3.1276
114.94
1.4577
14.385
24.141
38.743
222.16
99.115
18.327
3.3159
114.85
1.4958
11.908
22.957
40.013
180.48
11.246
24.051
40.823
167.84
82.20
89.68
90.55
130.77
5.7467
2.7253
98.30
17.437
27.285
23.354
40.729
11.926
222.16
.15328
.33705
41.753
8.0000
39.632
121.16
19.180
3.9286
136.47
1.7424
.11521
.33933
39.550
4.8626
40.240
.11372
.34359
39.718
4.8114
39.953
.11327
.35087
40.011
4.4084
39.813
.11276
.35687
40.152
4.3978
40.079
.11264
.36339
40.305
4.4076
40.464
.11279
.36046
40.255
4.3890
40.7009
95.689
19.035
2.5778
115.00
1.4530
96.129
18.909
2.5752
114.93
1.4536
96.002
18.956
2.5818
115.00
1.4491
11.421
23.734
40.127
171.24
95.192
18.904
3.0717
115.00
1.4475
11.442
23.543
39.669
171.03
12.820
23.726
39.209
171.74
13.676
23.004
39.582
171.90
13.700
22.962
39.694
171.85
90.35
90.55
90.45
90.13
89.99
1 Index of weighted-average exchange value of U.S. dollar against curNote.—Averages of certified noon buying rates in New York for cable
rencies of other G-10 countries plus Switzerland. May 1970 parities = 100. transfers.
Weights are 1972 global trade of each of the 10 countries.
A69
Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR PRESENTATION
S y m b o l s a n d A b b r e v ia t io n s
p
r
rp
e
c
n.e.c.
Rp’s
IPC’s
Preliminary
Revised
Revised preliminary
Estimated
Corrected
Not elsewhere classified
Repurchase agreements
Individuals, partnerships, and corporations
SM SA’s
REIT’s
*
Standard metropolitan statistical areas
Real estate investment trusts
Amounts insignificant in terms of the partic
ular unit (e.g ., less than 500,000 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed or, (4) no change (when
figures are expected in percentages).
G e n e r a l I n f o r m a t io n
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
“ U .S. Govt, securities” may include guaranteed
issues of U .S. Govt, agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
obligations of the Treasury. “ State and local govt.”
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.
STATISTICAL RELEASES
L ist P u b l is h e d S e m i a n n u a l l y , w it h L a t e s t B u l l e t i n R e f e r e n c e
Issue
Anticipated schedule of release dates for individual releases ...........................................
Page
Dec. 1976
A-82
Detailed data for call report for September 30, 1976, appear on following two pages.
A70
Domestic Financial Statistics □ June 1977
1.26
COMMERCIAL BANK ASSETS A ND LIABILITIES
Asset and liability items are shown in millions of dollars
Detailed Balance Sheet, September 30, 1976<
Member banks1
Asset account
1
2
3
4
5
6
7
Demand balances with banks in United States.......
Balances with banks in foreign countries..............
9
10 Other U.S. Govt, agencies...................................
1
1 States and political subdivisions...........................
12 All other securities..............................................
13
14 Trading-account securities....................................
U.S. Treasury.................................................
15
Other U.S. Govt, agencies................................
16
States and political subdivisions.......................
17
All other trading acct. securities.......................
18
19
20
21
Other U.S. Govt, agencies................................
22
23
All other portfolio securities............................
24
25 F.R. stock and corporate stock...............................
26 Federal funds sold and securities resale agreement.......
27
28
29 Others................................................................
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Reserves for loan loss................................
Other loans, gross, by category
Construction and land development.................
FHA-insured or VA-guaranteed.................
Secured by other properties..............................
Insured
commercial
banks
Large banks
Total
New York
City
120,709
11,866
26,496
27,863
5,144
3,868
45,470
238,111
94,148
34,089
103,914
5,834
126
102,645
8,836
26,496
16,955
3,052
3,417
43,890
168,815
68,496
21,136
75,183
3,921
79
7,753
4,540
658
1,403
426
126
6,979
4,438
656
1,379
426
79
2,311
222
528
93
444
50
113
67
230,958
161,836
17,299
89,608
33,431
102,510
5,408
1,532
37,318
33,278
2,581
1,459
64,057
20,480
73,804
3,495
1,291
29,168
25,381
2,456
1,331
512,885
12,439
6,122
494,323
391,783
8,617
4,928
378,238
145,670
102,858
16,794
6,505
82,531
78,162
8,178
69,984
4,369
374
3,995
39,839
34,108
28,519
782
4,823
6,033
116
296
16,468
20,453
10,625
1,201
8,208
420
City of
Chicago
3,154
All other loans....................................................
68 Total loans and securities, net.................................
69 Direct lease financing.............................................
70 Fixed assets—Buildings, furniture, real estate..........
71 Investment in unconsolidated subsidiaries................
87,680
32,262
13,701
39,435
2,240
42
10,913
2,092
452
1,581
69,299
25,655
12,954
28,730
1,913
47
673
2,875
277
175
7,280
49,854
87,403
32,113
13,687
39,370
2,232
69,124
25,553
12,952
28,706
1,913
All
8,186
7,933
124
129
121,102
3,822
1,194
116,085
7,953
3,930
360
3,435
229
Loans to farmers-^-except real estate....................
Loans to individuals............................................
Residential-repair/modernize.........................
Credit cards and related plans......................
Charge-account credit cards......................
Check and revolving credit plans...............
73 Other assets...........................................................
For notes see opposite page.
101
2
24
1
Al
15,668
13,034
1,588
1,047
70,487
574
1,192
68,721
143,351
2,822
1,764
138,765
473
10,837
10,414
290
133
156,787
5,137
1,656
149,994
9,519
1,981
36,784
54,574
42,812
1,608
1,174
241
521
14
944
6,272
288
21,294
50
781
112
25
87
502
3,858
16,351
3,805
2,475
32,470
30,862
2,562
28,299
1,008
8,930
88
1,520
15,824
63
1,110
12,534
13,442
2,837
1,721
832
4,221
3,751
800
2,622
79
4,635
4,936
428
93
35,256
5,861
1,411
128
325
21
2,336
1,176
312
135
10,823
1,712
64,074
4,375
771,284
577,512
4,820
19,251
2,227
9,868
30,667
4,590
14,527
2,186
9,497
27,621
738,577
25,239
4,531
11,560
9,171
2,390
10,994
6,261
4,734
11,749
16,719
11,358
148
14
64
8
42
1,087
925
120
42
21,157
84
316
20,758
958,827
56
57
58
59
60
61
62
63
64
65
66
67
To banks in foreign countries...........................
To other financial institutions...........................
1,535
371
675
258
37
18,069
3,030
1,575
1,008
458
109
11,887
38,615
6,425
13,111
10,211
2,900
15,930
8,794
7,136
17,209
23,481
13,182
32,783
5,079
9,977
7,463
1,935
1,048
7,282
20,144
5,503
23,432
775
32,387
91,290
37,317
2,824
9,926
3,272
977
2,045
18,273
52,729
21,679
5,874
24,106
1,033
37
3,486
310
3,322
162
78
2,967
16
4,486
4,097
623
3,474
390
121
269
2,050
9,868
1,986
6,076
1,003
13,454
8,247
3,417
12,790
139,934
80,793
All other
8,314
979
7,680
327
268
13,565
2,793
59,194
55,999
7,094
48,906
3,195
311
2,884
27,305
10,215
2,495
6,168
1,184
14,046
8,465
4,057
22,913
169,720
114,770
4,026
151
1,770
186
25
28
1,867
Other
large
Non
member
banks1
20,209
1,085
11
53,317
28,043
697
280
487
167
1,205
145
939
9,588
40,538
45,177
640
10,123
29,786
33,978
967
22,527
36,205
27,216
91,017
29,877
207,634
248,984
193,811
1,062
1,999
909
5,027
11,919
130
622
162
351
1,601
36,769
663
6,302
73
293
4,056
293,154
230
4,726
40
372
3,089
140,451
2,736
5,603
1,042
3,826
10,045
268,204
806
316
1,544
1,099
445
310
167
143
1,398
1,486
2,508
143
47
592
561
31
78
31
47
108
745
798
4,010
778
2,642
735
5,278
1,990
1,738
3,229
3,712
23,337
22,163
1,084
21,079
1,91A
7,294
1,784
6,287
5,147
1,141
3,873
2,239
1,634
3,288
5,517
5,062
16,996
2,384
3,137
2,364
773
6,733
3,824
2,909
6,955
8,971
2,991
346
508
93
181
593
111
13,376
1,894
1,551
1,041
510
4,936
2,533
2,402
5,459
6,762
1,824
220,337
Commercial Banks
A71
1.26 Continued^
Member banks1
Liability or capital
account
76
77
Mutual savings banks..........................................
Other individuals, partnerships, and
78
U.S. Govt...........................................................
80
81
82
Foreign governments, central banks, etc...............
Commercial banks in United States.....................
Banks in foreign countries...................................
87
.................................... .
Other individuals, partnerships, and
88
U.S. Govt...........................................................
92
Banks in foreign countries...................................
Insured
commercial
banks
Large banks
Total
New York
City
City of
Chicago
Other
large
58,244
486
10,034
2
85,132
242
29,296
459
641
989
17,063
4,488
4,821
33,040
285,825
210,810
170
138
194
373
86 386
Mutual savings banks
7,344
169
191
21
1,901
141
265
66,188
1,618
3,454
217
9,544
1,148
2,721
90,260
289
74,637
2,038
7,300
24
3,452
138
2,382
12,327
6
72,926
12
140
92,516
125
33
23,370
88
1,326
4,915
2,291
856
10,187
9,560
360
236
32
8,873
33
1,203
1,177
942
93
2,751
2,636
110
6
75,531
219
15,800
47
697
65
74,002
69,961
2,513
1,522
5
101,471
25,113
56,019
241
12,433
1,909
1,970
202
49,096
46,285
2,278
522
10
207,154
56,498
1,453
4,818
21
998
241
2,125
75,016
33
13
60,493
151
13,260
275
727
65
54,288
51,494
1,817
973
3
256,778
195,567
14,683
7,200
923
6,560
2,229
57
5,602
4,359
128,402
7,898
5,635
821
1,442
53
16
351
798
30,052
18,357
3,222
8,474
1,729
311
3,852
5,513
248,612
1,802
8,170
3,924
812
3,434
443
195
294
3,155
269,034
3,330
1,406
510
1,413
279
220
372
2,322
570
1,155
660
71
36,769
6,097
4,296
1,353
20,941
9,880
24,367
8,750
67
17,791
10
3,768
7,394
6,193
426
268,204
55,698
37,813
15,658
139,653
44,751
203,638
31,425
1,831
23,107
25
5,513
8,334
8,528
707
293,154
77,488
32,192
12,331
151,417
28,493
255,971
8,197
388
202,091
936
17,310
41
4,185
7,089
5,483
512
220,337
62,232
17,239
9,077
117,272
22,811
194,425
4,038
287
850
9,752
8,252
1,500
3,137
44,932
36,440
8,492
673
28,734
24,976
3,757
540
23,152
20,268
2,884
9
154
5,598
8,622
309,935
1,129
243,671
1,020
233,964
5,738
16,404
1,272
32,958
6,157
12,313
177,465
4,285
11,586
1,251
31,959
5,916
10,188
224,286
731
44,022
8,323
6,628
1,281
190,325
179,937
7,077
3,260
51
786,084
163,792
580
30,762
8,048
5,901
1,216
136,037
128,442
5,261
2,287
47
590,517
106 Other liabilities....................................................
64,132
36,521
6,289
21,323
4,733
798
10,471
16,067
60,803
35,115
5,778
19,910
4,454
578
10,099
13,825
107 Total liabilities......................................................
108 Subordinated notes and debentures........................
882,286
4,931
680,276
3,995
109 Equity capital.......................................................
110 Preferred stock.................................................
111 Common stock.................................................
112 Surplus.............................................................
114 Other capital reserves........................................
115 Total liabilities and equity capital...........................
116 Memo: Demand deposits adjusted 2.......................
Average for last 15 or 30 days:
117 Cash and due from bank...................................
118 Federal funds sold and securities purchased
under agreements to resell...........................
119 Total loans........................................................
120 Time deposits of $100,000 or more.....................
121 Total deposits........................................... ........
122 Federal funds purchased and securities sold
under agreements to repurchase...................
123 Other liabilities for borrowed money...................
124 Standby letters of credit outstanding......................
125 Time deposits of $100,000 or more........................
126 Certificates of deposit........................................
127 Other time deposits...........................................
71,609
76
16,477
28,202
25,046
1,808
958,827
54,306
35
12,295
21,114
19,565
1,296
738,577
225,769
121,031
40,210
499,639
134,595
774,159
69,683
4,276
163,536
103,795
31,166
382,368
111,784
579,734
65,646
3,989
11,476
134,796
113,509
21,287
10,936
111,644
93,241
18,402
29,495
1,824
70,357
28,660
95,758
17,273
1,703
6,276
28,227
23,574
4,653
128 Number of banks...............................................
14,389
5,773
12
93 Savings deposits......................................................
94 Individuals and nonprofit organizations...............
95 Corporations and other profit organizations.........
96 U.S. Govt............................................... ...........
97 All other.............................................................
98 Total deposits.........................................................
99 Federal funds purchased and securities sold under
agreements to repurchase................................
100 Commercial banks............................................
101 Brokers and dealers...........................................
102 Others..............................................................
103 Other liabilities for borrowed money......................
M Similar data for Dec. 31, 1976, appear on pp. A-18 and A-19.
1 Member banks exclude and nonmember banks include 6 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.
All other
Nonmember
banks1
1,098
10,951
2,444
4,231
4,184
92
140,451
24,254
34,229
83
2,457
1,012
66,264
109
Note.—Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned do
mestic subsidiaries. Securities are reported on a gross basis before deduc
tions of valuation reserves. Holdings by type of security will be reported
as soon as they become available.
Back data in lesser detail were shown in previous Bulletins. Details
may not add to totals because of rounding.
A ll
Board of Governors of the Federal Reserve System
A r th u r
F.
S t e p h e n S . G a r d n e r , Vice Chairman
B u r n s , Chairman
P h ilip
H en ry C. W a llic h
J. C h a r l e s P ar tee
P h ilip C . J a c k s o n , Jr.
O FFIC E O F
ST A F F D IR E C T O R F O R M A N A G E M E N T
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 ire cto r
D o n a l d E . A n d e r s o n , A ssista n t D irecto r for
C onstruction M anagem ent
G o r d o n B . G r im w o o d , A ssista n t D irector
and P rogram D irecto r fo r
Contingency Planning
W il li a m W . L a y t o n , D irecto r of Equal
Em ploym ent O pportunity
OFFICE OF B O A R D M E M B E R S
T h o m a s J. O ’C o n n e l l , Counsel to the
Chairman
M i l t o n W . H u d s o n , A ssista n t to the
Chairman
Jo sep 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 ssista n t to the B oard
J a y P a u l B r e n n e m a n , Special A ssista n t to the
B oard
E.
C o ld w e ll
D a v id
M.
L illy
OFFICE O F ST A F F
D IR E C TO R FO R M O N E T A R Y PO L IC Y
S t e p h e n H . A x i l r o d , Staff D irecto r
A r t h u r L. B r o id a , D eputy Staff D irecto r
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 ir , A ssista n t to the B oard
S t a n l e y J. S i g e l , A ssista n t to the B oard
N o rm a n d R . V . B e r n a r d , Special A ssistan t to
the B oard
F r a n k O ’B r ie n , J r ., Special A ssista n t to the
B oard
Jo sep h S. Sim s, S pecial A ssista n t to the B oard
D o n a l d J. W in n , S pecial A ssista n t to the
D IV IS IO N O F R E SE A R C H A N D ST A T IST IC S
B oard
LEG A L D IV IS IO N
D IV IS IO N O F F E D E R A L R E S E R V E
B A N K E X A M IN A T IO N S A N D B U D G E T S
W il li 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 irecto r
C l y d e H . F a r n s w o r t h , J r ., A ssista n t D irector
J o h n F . H o o v e r , A ssistan t D ire cto r
P. D . R in g , A ssistan t D irecto r
J o h n D . H a w k e , J r ., G eneral Counsel
B a ld w in B . T u t t l e , D eputy G eneral
Counsel
R o b e r t E. M a n n io n , A ssistan t G eneral
Counsel
A l l e n L. R a ik 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 le s R. M c N e i l l , A ssistan t to the
General Counsel
Jam es L. K i c h l i n e , D irecto r
J o sep h S. Z e i s e l , D epu ty D irecto r
E d w a r d C . E t t i n , A sso cia te D irecto r
J o h n H . K a l c h b r e n n e r , A sso cia te D irector
E l e a n o r J. S t o c k w e l l , Senior Research
D ivision Officer
Jam es R . W e t z e l , Senior R esearch D ivision
Officer
R o b e r t A . E is e n b e is , A sso cia te R esearch
D ivision Officer
f J o h n J. M in g o , A sso cia te R esearch D ivision
Officer
J. C o r t l a n d G . P e r e t , A sso cia te R esearch
D ivision Officer
DIVISION OF
FEDERAL RESERVE BANK OPERATIONS
Jam es R . K u d l in s k i, 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 ia 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 ssistan t D irector
D IV ISIO N O F C O N S U M E R A F F A IR S
D ivision Officer
J a n e t O . H a r t , D irecto r
N a t h a n i e l E . B u t l e r , A sso cia te D irecto r
J e r a u ld C . K lu c k m a n , A sso cia te D irecto r
C h a r l e s L . H a m p to n , D irector
B r u c e M . B e a r d s l e y , A ssociate D irector
U y l e s s D . B l a c k , A ssista n t D irector
G l e n n L . C u m m in s, A ssistan t D irector
R o b e r t J. Z e m e l, A ssistan t D irector
D IV IS IO N O F P E R S O N N E L
D a v id L. S h a n n o n , D irecto r
C h a r l e s W . W o o d , A ssista n t D irector
O FFIC E O F T H E C O N T R O L L E R
J o h n K a k a l e c , C on troller
T y l e r E . W il li a m s , J r ., A ssistan t Controller
Jam es M . B r u n d y , A ssista n t Research
D ivision Officer
J a r e d J. E n z l e r , A ssista n t R esearch D ivision
Officer
R o b e r t M . F is h e r , A ssista n t Research
OFFICE O F T H E S E C R E T A R Y
D IV IS IO N O F D A T A P R O C E SSIN G
t H e l m u t F. W e n d e l l , A sso cia te Research
T h e o d o r e E. A l l i s o n , S ecretary
G r i f f i t h L. G a r w o o d , D eputy Secretary
* R u t h A . R e is t e r , A ssista n t Secretary
D ivision Officer
R ic h a r d H . P u c k e t t , A ssista n t Research
D ivision Officer
S t e p h e n P. T a y l o r , A ssista n t Research
D ivision Officer
L e v o n H . G a r a b e d ia n , A ssista n t D irector
D IV ISIO N O F B A N K IN G
S U P E R V ISIO N A N D R E G U L A T IO N
J o h n E. R y a n , A ctin g D irecto r
W illia m W . W il e s , A sso cia te D irecto r
F r e d e r ic k R . D a h l , A ssista n t D irecto r
J a ck M . E g e r t s o n , A ssista n t D irecto r
J o h n T. M c C l i n t o c k , A ssista n t D irecto r
T h o m a s E. M e a d , A ssista n t D irecto r
R o b e r t S. P l o t k i n , A ssista n t D irecto r
T h o m a s A . S id m a n , A ssista n t D irector
D IV IS IO N O F IN T E R N A T IO N A L F IN A N C E
J o h n E. R e y n o ld s , A ctin g D irector
E d w in M . T r u m a n , A sso cia te D irector
R o b e r t F. G e m m ill, Senior International
D ivision Officer
G e o r g e B . H e n r y , Senior International
D ivision Officer
R e e d J. I r v in e , Senior International
D ivision Officer
S a m u e l P iz e r , Senior International D ivision
Officer
D IV IS IO N O F A D M IN IS T R A T IV E SE R V IC ES
W a l t e r W . K r e im a n n , D irector
J o h n D . S m ith , A ssista n t D irector
D ivision O fficer
* On loan from the Federal R eserve Bank of M inneapolis.
t O n leave of absence.
A73
C h a r l e s J. S ie g m a n , Senior International
A 74
Federal Open Market Committee
A r t h u r F . B u r n s , Chairman
P a u l A . V o l c k e r , Vice Chairman
P h il ip E. C o l d w e l l
S te p h e n S. G a r d n e r
P h il ip C . J a c k s o n , J r .
D a v id M . L i l l y
J. C h a r l e s P a r t e e
L a w r e n c e K . R o os
R o g er G u ffe y
R o b e r t P. M a y o
F r a n k E. M o r r is
H e n r y C . W a l l ic h
A r t h u r L. B r o id a , S ecretary
M u r r a y A lt m a n n , D eputy Secretary
N o r m a n d R . V . B e r n a r d , A ssistan t
Secretary
T h o m a s J. O ’C o n n e l l , General Counsel
E d w a r d G . G u y , D eputy G eneral Counsel
B a ld w in B . T u t t l e , A ssistan t G eneral
Counsel
S te p h e n H . A x i l r o d , Econom ist
A n a t o l B a l b a c h , A sso cia te Econom ist
R ic h a r d G . D a v is , A sso cia te Econom ist
T h o m a s D a v is , A sso cia te Econom ist
R o b e r t E is e n m e n g e r , A sso cia te Econom ist
E d w a r d C . E t t i n , A sso cia te Econom ist
Jam es L. K i c h l i n e , A sso cia te Econom ist
J o h n E . R e y n o ld s , A ssociate Econom ist
K a r l S c h e l d , A sso cia te Econom ist
E d w in M . T r u m a n , A sso cia te Econom ist
J o sep h S. Z e i s e l , A sso cia te Econom ist
A l a n R . H o lm e s , M an ager , System Open M arket A ccount
P e t e r D . S t e r n l i g h t , D eputy M anager fo r D om estic O perations
S c o t t E . P a r d e e , D eputy M anager fo r Foreign O perations
Federal Advisory Council
R ic h a r d D . H i l l , f i r s t f e d e r a l r e s e r v e d i s t r i c t , P resident
G i l b e r t F. B r a d l e y , t w e l f t h f e d e r a l r e s e r v e d i s t r i c t , Vice President
E d w a r d B yr o n S m it h , se v e n t h feder al
W alter B . W r is t o n , se c o n d federal
reser ve district
reserve district
R oger S. H ill a s , th ir d feder al
reserve district
reserve district
M . B rock W e ir , fo u r t h feder al
J. W . M c L e a n , t e n t h fed er a l
reserve district
reserve district
F r a n k A . P l u m m e r , six t h feder al
R ich ar d H . V a u g h a n , n in t h feder al
reserve district
reserve district
Jo h n H . L u m p k in , fift h fe der al
reserve district
D o n a l d E . L a s a t e r , eig h t h feder al
B e n F. L o v e , e l e v e n t h feder al
reserve district
H e r b e r t V . P r o c h n o w , Secretary
W illia m J. K o r s v ik , A sso cia te Secretary
A75
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON* ................. 02106
Louis W. Cabot
Robert M. Solow
Frank E. Morris
James A. McIntosh
NEW YORK* ........... 10045
Frank R. Milliken
Robert H. Knight
Paul A. Miller
Vice President
in charge of branch
Paul A. Volcker
Thomas M. Timlen
Buffalo ................... 14240
John T. Keane
PHILADELPHIA
19105
John W. Eckman
Werner C. Brown
David P. Eastburn
Vacant
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
Robert C. Edwards
Robert P. Black
George C. Rankin
Cincinnati .............. 45201
Pittsburgh .............. 15230
RICHMOND* .............23261
Baltimore ................. 21203
Charlotte ................. 28230
Robert E. Showalter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Culpeper Communications
and Records Center. . 22701
ATLANTA ................ 30303
Birmingham ...........
Jacksonville ...........
Miami ....................
Nashville ................
New Orleans .........
35202
32203
33152
37203
70161
CHICAGO* .............. 60690
Detroit .................... 48231
ST. LOUIS ................ 63166
Little Rock ............ 72203
Louisville .............. 40201
Memphis ................ 38101
MINNEAPOLIS
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
Albert D. Tinkelenberg
H. G. Pattillo
Clifford M. Kirtland, Jr.
William H. Martin, III
Gert H. W. Schmidt
David G. Robinson
John C. Bolinger
George C. Cortright, Jr.
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
James C. Hendershot
Frank A. Jones, Jr.
Lawrence K. Roos
Vacant
James P. McFarland
Stephen F. Keating
Patricia P. Douglas
Mark H. Willes
Clement A. Van Nice
Harold W. Andersen
Joseph H. Williams
A. L. Feldman
James G. Harlow, Jr.
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Charles T. Beaird
Gage Holland
Alvin I. Thomas
Marshall Boykin, III
Ernest T. Baughman
Robert H. Boykin
Joseph F. Alibrandi
Cornell C. Maier
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
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Fredric W. Reed
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
James J. Curran
*
A dditional offices o f these B anks are located at L ew iston , M aine 04240; W indsor L ock s, C onnecticut 0 6 0 9 6 ; Cranford,
N ew Jersey 0 7 0 1 6 ; Jericho, N e w Y ork 11753; C olum bus, O hio 43216; C olum bia, South C arolina 29210; D e s M oin es, Iow a
50306; Indianapolis, Indiana 4 6 2 0 4 ; and M ilw aukee, W iscon sin 53202.
A76
Federal Reserve Board Publications
A va ila b le from Publications Services, D ivision o f A d
m inistrative S e rvices, B o a rd o f G overnors o f the F ed
eral R eserve System , W ashington, D .C . 20551. W here
a charge is indicated , rem ittance should accom pany
request and be m ade paya b le to the order of the B oard
of G overnors of the Federal R eserve System in a form
collectible a t p a r in U .S. currency. (Stam ps and
coupons are not accepted.)
The
B a n k C r e d i t -C a r d a n d C h e c k -C r e d it P l a n s . 1968.
1 0 2 p p . $ 1 . 0 0 e a ch ; 10 o r m o r e to o n e a d d r e s s,
$.85 e a c h .
S u r v e y o f F i n a n c i a l C h a r a c t e r i s t ic s o f C o n
s u m e r s . 1966. 166 p p . $1.00 e a c h ; 10 or m o r e
to o n e a d d r e s s, $.85 e a c h .
S u r v e y o f C h a n g e s i n F a m i l y F i n a n c e s . 1968. 321
p p . $1.00 e a c h ; 10 or m o r e to o n e a d d r e s s, $.85
each .
R e p o r t o f t h e J o i n t T r e a s u r y -F e d e r a l R e s e r v e
S tu d y of the
U .S. G o v e r n m e n t S e c u r it ie s
M a r k e t . 1969. 48 p p . $.25 ea c h ; 10 or m o r e to
o n e ad d ress, $ .2 0 each .
J o i n 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
G o v e r n m e n t S e c u r it ie s M a r k e t : S t a f f S t u d
ie s — P a r t 1. 1970. 86 p p . $.50 each; 10 or more
to one address, $.40 each. P a r t 2. 1971. 153 p p .
and P a r t 3. 1973. 131 p p . Each volume $1.00;
F ed e r a l R eser v e
S y ste m — P u r po se s
F u n c t i o n s . 1974. 125 pp.
and
A n n u a l R eport
B u l l e t i n . Monthly. $20.00 per
year or $2.00 each in the United States, its posses
sions, Canada, and Mexico; 10 or more of same
issue to one address, $18.00 per year or $1.75
each. Elsewhere, $24.00 per year or $2.50 each.
B a n k i n g a n d M o n e t a r y S t a t i s t i c s , 1914-1941.
(Reprint of Part 1 only) 1976. 682 pp. $5.00.
B a n k in g a n d
M o n e t a r y S t a t i s t i c s , 1941-1970.
1976. 1,168 pp. $15.00.
A n n u a l S t a t i s t i c a l D i g e s t , 1970-75. 1976. 339 pp.
$4.00 per copy for each paid subscription to Fed
eral Reserve B ulletin. A ll others, $5.00 each.
F ed e r a l R eserve
F e d e r a l R e s e r v e M o n t h l y C h a r t B o o k . S u b s c r ip
tio n in c lu d e s o n e is s u e o f H is to r ic a l C hart B o o k .
$12.00 p e r y e a r o r $1.25 e a c h in th e U n it e d S t a te s ,
its p o s s e s s io n s , C a n a d a , a n d M e x ic o ; 10 o r m o r e
o f s a m e is s u e to o n e a d d r e s s , $1.00 e a c h . E ls e
w h e r e , $15.00 p e r y e a r o r $1.50 e a c h .
H is t o r ic a l C h a r t B o o k . Issued annually in Sept.
Subscription to Monthly Chart Book includes one
issue. $1.25 each in the United States, its posses
sions, Canada, and Mexico; 10 or more to one
address, $1.00 each. Elsewhere, $1.50 each.
C a p it a l M a r k e t D e v e l o p m e n t s . Weekly. $15.00 per
year or $.40 each in the United States, its posses
sions, Canada, and Mexico; 10 or more of same
issue to one address, $13.50 per year or $.35 each.
Elsewhere, $20.00 per year or $.50 each.
S e l e c t e d In t e r e s t a n d E x c h a n g e r a t e s— W e e k l y
S e r ie s o f C h a r t s . Weekly. $15.00 per year or
The
$.40 each in the United States, its possessions,
Canada, and Mexico; 10 or more of same issue
to one address, $13.50 per year or $.35 each.
Elsewhere, $20.00 per year or $.50 each.
F e d e r a l R e s e r v e A c t , as amended through D e
cember 1971, with an appendix containing provi
sions of certain other statutes affecting the Federal
Reserve System. 252 pp. $1.25.
R e g u l a t io n s o f t h e B o a r d o f G o v e r n o r s o f t h e
F ed e r a l R eser v e S y stem
P u b l is h e d In t e r p r e t a t io n s o f t h e B o a r d o f G o v
e r n o r s , a s o f June 30, 1976. $7.50.
I n d u s t r i a l P r o d u c t i o n — 1971 E d i t i o n . 1972. 383
pp. $4.00 each; 10 or more to one address, $3.50
each.
10 or more to one address, $.85 each.
O pen
M a r k e t P o l ic ie s a n d O p e r a t i n g P r o c e
S ta ff S t u d ie s . 1 9 7 1 . 2 1 8 pp . $ 2 .0 0
e a c h ; 10 or m o r e to o n e a d d r e s s , $ 1 .7 5 e a c h .
R e a p p r a is a l o f t h e F e d e r a l R e s e r v e D is c o u n t
M e c h a n i s m . Vol. 1. 1971. 276 p p . Vol. 2. 1971.
173 p p . Vol. 3. 1972. 220 p p . Each volume $3.00;
dures—
10 or more to one address, $2.50 each.
T h e E c o n o m e t r ic s o f P r ic e D e t e r m i n a t i o n C o n
f e r e n c e , October 30-31, 1970, Washington, D.C.
1972. 397 pp. Cloth ed. $5.00 each; 10 or more
to one address, $4.50 each. Paper ed. $4.00 each;
10 or more to one address, $3.60 each.
F ed e r a l R ese r v e S ta ff S t u d y : W a y s to M o d er a te
F l u c t u a t i o n s i n H o u s i n g C o n s t r u c t i o n . 1972.
487 p p . $4.00 e a ch ; 10 or m o r e to o n e a d d r e s s,
$3.60 e a c h .
L e n d in g F u n c t io n s o f t h e F e d e r a l R ese r v e
B a n k s . 1973. 271 p p . $3.50 ea c h ; 10 or m o r e
to o n e a d d r e s s , $3.00 e a c h .
I n t r o d u c t i o n t o F l o w o f F u n d s . 1975. 64 p p . $.50
e a c h ; 10 or m o r e to o n e a d d r e s s, $.40 e a c h .
I m p r o v in g t h e M o n e t a r y A g g r e g a t e s (R e p o r t o f th e
A d v is o r y C o m m itte e o n M o n e ta r y S t a tis tic s ) .
1976. 43 p p . $1.00 e a c h ; 10 or m o r e to o n e
a d d r e s s , $.85 e a c h .
A n n u a l P e r c e n t a g e R a t e T a b l e s (Truth in Lend
ing— Regulation Z) Vol. I (Regular Transactions).
1969. 100 p p . Vol. II (Irregular Transactions).
1969. 116 p p . Each volume $1.00, 10 or more
of same volume to one address, $.85 each.
Federal Reserve Board Publications
CONSUMER EDUCATION PAMPHLETS
(Short pam phlets suitable fo r classroom use. M u ltiple
copies available without charge.)
T h e E q u a l C r e d it O p p o r t u n it y A c t a n d . . . A g e
T h e E q u a l C r e d it O p p o r t u n it y A c t a n d . . .
D o c to r s, L a w y e r s ,
S m all
R e t a il e r s ,
and
O t h e r s W h o M a y P r o v id e In c id e n t a l C r e d it
T h e E q u a l C r e d it O p p o r t u n it y A c t a n d . . .
W om en
F a ir C r e d i t B i l l i n g
If Y o u B o r r o w T o B u y S t o c k
U.S. C u r r e n c y
W h a t T r u t h in L e n d in g M e a n s to Y o u
STAFF ECONOMIC STUDIES
Studies and p a p e rs on econom ic and financial subjects
that are o f general interest in the field of econom ic
research .
S ummaries O nly Printed in the B ulletin
(L im ited su pply o f m im eographed copies o f full text
available upon request fo r single copies.)
T h e G r o w t h o f M u l t ib a n k H o l d in g C o m p a n ie s :
1956-73, by Gregory E. Boczar. Apr. 1976. 27
pp.
E x t e n d in g M e r g e r A n a l y s is B e y o n d t h e S in g l e M a r k e t F r a m e w o r k , b y S te p h e n A . R h o a d e s .
M a y 1976. 25 p p .
S e a s o n a l A d j u s t m e n t o f M 1— C u r r e n t l y P u b
l i s h e d a n d A l t e r n a t i v e M e t h o d s , by Edward
R. Fry. May 1976. 22 pp.
E f f e c t s o f NOW A c c o u n t s o n C o s t s a n d E a r n i n g s
o f C o m m e r c ia l B a n k s i n 1974-75, b y J o h n D.
P a u lu s . Sept. 1976. 49 pp.
R e c e n t T r e n d s in L o c a l B a n k in g M a r k e t S t r u c
t u r e , by Samuel H. Talley. May 1977. 26 pp.
Printed in Full in the B ulletin
Staff E conom ic Studies shown in list below.
REPRINTS
(E xcept fo r Staff P apers, Staff Econom ic Studies, and
som e leading articles, m ost o f the articles reprinted do
not exceed 12 p a g e s.)
A R e v is e d In d e x o f M a n u f a c t u r i n g C a p a c it y ,
Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 11/66.
U .S. I n t e r n a t i o n a l T r a n s a c t i o n s : T r e n d s i n
1960-67. 4/68.
M e a s u r e s o f S e c u r i t y C r e d i t . 12/70.
A ll
R e v i s e d M e a s u r e s o f M a n u f a c t u r i n g C a p a c it y
U t i l i z a t i o n . 10/71.
R e v i s io n o f B a n k C r e d i t S e r i e s . 12/71.
A s s e t s a n d L ia b i l i t i e s o f F o r e i g n B r a n c h e s o f
U .S. B a n k s . 2/72.
B a n k D e b i t s , D e p o s i t s , a n d D e p o s it T u r n o v e r —
R e v i s e d S e r i e s . 7/72.
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 . 9/72.
R e c e n t A c t i v i t i e s o f F o r e i g n B r a n c h e s o f U .S .
B a n k s . 10/72.
R e v i s i o n o f C o n s u m e r C r e d i t S t a t i s t i c s . 10/72.
O n e - B a n k H o l d i n g C o m p a n i e s B e f o r e t h e 1970
A m e n d m e n t s . 12/72.
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 .
5/73.
C r e d i t - 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 i a l B a n k s . 9/73.
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 . 9/73.
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 i n g C o r p o r a
t i o n s . 10/73.
U.S. E n e r g y S u p p l i e s a n d U s e s , Staff Economic
Study by Clayton Gehman. 12/73.
In f l a t io n a n d S t a g n a t io n in M a jo r F o r e ig n In
d u s t r i a l C o u n t r i e s . 10/74.
T h e S t r u c t u r e o f M a r g i n C r e d i t . 4/75.
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 i t 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 . 4/75.
R e c e n t T r e n d s i n F e d e r a l B u d g e t P o l i c y . 7/75.
R e c e n t D e v e l o p m e n t s in In t e r n a t io n a l F in a n c ia l
M a r k e t s . 10/75.
M INNIE:
A S mall
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 by Douglas Battenberg, Jared J.
Enzler, and Arthur M . Havenner. 11/75.
A n A s s e s s m e n t o f B a n k H o l d i n g C o m p a n i e s , Staff
Economic Study by Robert J. Lawrence and
Samuel H . Talley, 1/76.
I n d u s t r i a l E l e c t r ic P o w e r U s e . 1/76.
R e v i s i o n o f M o n e y S t o c k M e a s u r e s . 2/76.
S u r v e y o f F i n a n c e C o m p a n i e s , 1975. 3/76.
R e v i s 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 . 4/76.
I n d u s t r i a l P r o d u c t i o n — 1976 Revision. 6/76.
F e d e r a l R e s e r v e O p e r a t io n s in P a y m e n t M e c h a
n i s m s : A S u m m a r y . 6/76.
R e c e n t G r o w t h i n A c t i v i t ie s o f U .S. O f f ic e s o f
B a n k s . 10/76.
N e w E s t im a t e s o f C a p a c it y U t i l i z a t io n : M a n u
f a c t u r i n g a n d M a t e r i a l s . 11/76.
U.S. I n t e r n a t i o n a l T r a n s a c t i o n s i n a R e c o v e r in g
E c o n o m y . 4/77.
B a n k H o l d in g C o m p a n y F in a n c ia l D e v e l o p m e n t s
in
1976. 4/77.
C h a n g e s i n B a n k L e n d i n g P r a c t i c e s , 1976. 4/77.
S u r v e y o f T erm s of B a n k L e n d in g — N e w S e r ie s .
5/77.
C h a n g e s i n T im e a n d S a v i n 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 , Oct.-Jan. 1977. 6/77.
T h e C o m m e r c ia l P a p e r M a r k e t . 6/77.
A78
Federal Reserve Bulletin □ June 1977
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
Reserve Positions of Major Reserve City Banks (H.5)
Friday
Week ended Wednes
day of previous
week
Selected Interest Rates and Bond Prices (H.15)
Monday
Week ended previous
Saturday
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
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
Weekly Summary of Banking and Credit Measures (H.9)
SEMIMONTHLY RELEASE
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.
A79
MONTHLY RELEASES (cont.)
DATE OR PERIOD
APPROXIMATE TO WHICH DATA
REFER
RELEASE DAY
Bank Debits, Deposits, and Deposit Turnover (G.6)
25th of month
Previous month
Bank Interest Rates Charged on Consumer Instalment Loans (G.10)
15th of month
2nd month previous
Capacity Utilization: Manufacturing and Materials (G.3)
17th 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
Index Numbers of Wholesale Prices (G.8)
20th of month
Previous month
Previous month
Industrial Production (G .12.3)
15th of month
Previous month
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)
Monthly Report of Condition for Foreign
Banking Institutions in the U .S. ( G .ll)
24th of month
Last Wednesday of
previous month
15th of month
6th of month
2nd month previous
Previous month
Summary of Equity Security Transactions (G.16)
Last week of
month
Release date
Survey of Terms of Bank Lending (G. 14)
15th of month
3rd month previous
Selected Interest Rates and Bond Prices (G. 13)
QUARTERLY RELEASES
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
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
of
Major
Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo
rations (E.6)
SEMIANNUAL RELEASES
Assets and Liabilities of Commercial Banks, by Class of Bank
(E.3.4)
Check Collection Services— Federal Reserve System (E.9)
Previous quarter
15th of
Previous quarter
March, June,
September,
December
10th of March, 2nd quarter previous
July, Septem
ber, December
APRROXIMATE
RELEASE DAY
May and N o
vember
February
and July
DATE OR PERIOD
TO WHICH DATA
REFER
End of previous D e
cember and June
Previous six
months
A80
Federal Reserve Bulletin □ June 1977
DATE OR PERIOD
APPROXIMATE TO WHICH DATA
RELEASE DAY
REFER
SEMIANNUAL RELEASES (Cont.)
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 Summaries
Extension (C.2)
of
Annual
(Supplements issued monthly)
Surveys
of
Security
Credit
A81
Index to Statistical Tables
References are to pages A -3 through A -71 although the prefix “ A ” is omitted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 20-22, 70
Assets and liabilities ( See also Foreigners):
Banks, by classes, 16, 17, 18, 20-23, 29, 70
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANK credit proxy, 15
Bankers balances, 16, 18, 20, 21, 22, 70
(S ee also Foreigners)
Banks for cooperatives, 35
Bonds ( See also U .S. Govt, securities):
New issues, 36, 37
Yields, 3
Branch banks:
Assets and liabilities of foreign branches of U.S.
banks, 62
Liabilities of U .S. banks to their foreign
branches, 23
Business activity, 46
Business expenditures on new plant and
equipment, 38
Business loans ( S ee Commercial and industrial loans)
CAPACITY utilization, 46, 47
Capital accounts:
Banks, by classes, 16, 17, 19, 20, 71
Federal Reserve Banks, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans:
Commercial banks, 15, 18, 23, 26, 70
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15-18, 20-23, 70
Business loans, 26
Commercial and industrial loans, 24
Consumer loans held, by type, 42, 43
Loans sold outright, 23
Number, by classes, 16, 17, 19, 71
Real estate mortgages held, by type of holder and
property, 41
Commercial paper, 3, 24, 25, 27, 39
Condition statements (S ee Assets and liabilities)
Construction, 46, 50
Consumer instalment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations:
Profits, taxes, and dividends, 38
Security issues, 36, 37, 65
Cost of living (S ee Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 16, 18, 70
Currency in circulation, 4, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (S ee specific types of debt o r securities)
Demand deposits:
Adjusted, commercial banks, 13, 15, 19, 71
Banks, by classes, 16, 17, 19, 20-23, 71
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (S ee also specific types o f deposits ):
Banks, by classes, 3, 16, 17, 19, 20-23, 29, 71
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Discount rates at F.R. Banks (S ee Interest rates)
Discounts and advances by F.R. Banks (S ee Loans)
Dividends, corporate, 38
EMPLOYMENT, 46, 47
Euro-dollars, 15, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal and Federally sponsored credit agencies, 35
Federal finance:
Debt subject to statutory limitation and
types and ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30, 70
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage Assn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (S ee Interest rates)
U .S. Govt, securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 20-23, 70
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
Deposits in U .S. banks, 4, 12, 19, 20, 21, 22, 71
Exchange rates, 68
Trade, 55
Foreigners:
Claims on, 60, 61, 66, 67
Liabilities to, 23, 56-59, 64-67
GOLD:
Certificates, 12
Stock, 4, 55
Government National Mortgage Assn., 35, 40, 41
Gross national product, 52, 53
A82
Federal Reserve Bulletin □ June 1977
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19, 70, 71
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital market rates, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the
United States, 56-67
International organizations, 56-61, 65-67
Inventories, 52
Investment companies, issues and assets, 37
Investments ( See also specific types of investm ents):
Banks, by classes, 16, 17, 18, 20, 21, 22,
29, 70
Commercial banks, 3, 15, 16, 17, 18, 70
Federal Reserve Banks, 12, 13
Life insurance companies, 29
Savings and loan assns., 29
LABOR force, 47
Life insurance companies (S ee Insurance companies)
Loans (S ee also specific types of loans):
Banks, by classes, 16, 17, 18, 20-23, 29, 70
Commercial banks, 3, 15-18, 20-23, 24, 26, 70
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by U .S ., 40, 41
Savings and loan assns., 29
MANUFACTURERS:
Capacity utilization, 46, 47
Production, 46, 49
Margin requirements, 28
Member banks:
Assets and liabilities, by classes, 16, 17, 18, 70
Borrowings at Federal Reserve Banks, 5, 12
Number, by classes, 16, 17, 19, 71
Reserve positiop, basic, 6
Reserve requirements, 9
Reserves and related items, 3, 4, 5, 15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 15
Money and capital market rates (S ee Interest rates)
Money stock measures and components, 3, 14
Mortgages (S ee Real estate loans)
Mutual funds (S ee Investment companies)
Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41
NATIONAL banks, 17, 19, 71
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19, 70, 71
OPEN market transactions, 11
PERSONAL income, 53
Prices:
Consumer and wholesale, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 38
REAL estate loans:
Banks, by classes, 18, 20-23, 29, 41, 70
Life insurance companies, 29
Mortgage terms, yields, and activity, 3, 40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves:
Commercial banks, 16, 17, 18, 20, 21,
22, 70
Federal Reserve Banks, 12
Member banks, 3, 4, 5, 15, 16, 18, 70
U .S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING:
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 10, 29', 33, 41, 44
Savings deposits (S ee Time deposits)
Savings institutions, selected assets, 29
Securities (S ee also U .S. Govt, securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36, 37
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22, 71
Holdings of U .S. Govt, securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29, 70
Yields of securities, 3
State member banks, 17, 70
Stock market, 28
Stocks (S ee also Securities):
New issues, 36, 37
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 15, 16, 17, 19, 20, 21,
22, 23, 71
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U .S. balance of payments, 54
U.S. Govt, balances:
Commercial bank holdings, 19, 20, 21, 22, 71
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. Govt, securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33, 70
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 20-24
Wholesale prices, 46
YIELDS (S ee Interest rates)
A83
The Federal Reserve System
B o u n d a rie s
o f F e d e ra l R e se rv e
D is tric ts
and
T h e ir B ra n c h
T e rrito rie s
LEGEND
— - Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
----- Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Q
Board of Governors of the Federal
Reserve System
Federal Reserve Bank Facility
@FedFRASER