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FEDERAL RESERVE

B U LLETIN
March

• *

*

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM




WASHISCTON

E D I T O R I A L

C O M M I T T E E

Elliott Thurston
Woodlief Thomas
Ralph A. Young

Winfield W. Riefler
Susan S. Burr

The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial
committee. This committee is responsible for opinions expressed, except in official statements and signed articles.

Contents
International Gold and Dollar Flows
Preliminary Findings of the 1958 Survey of Consumer Finances
Economic Policy Considerations
Credit Extended by Banks to Real Estate Mortgage Lenders

241

Bulletin Subscription Rate for Member Banks

259

Law Department

260

Current Events and Announcements

298

National Summary of Business Conditions

300

Financial and Business Statistics, U. S. (Contents on p. 303)

305

International Financial Statistics (Contents on p. 359)

360

Board of Governors and Staff
Open Market Committee and Staff; Federal Advisory Council

375
376

Federal Reserve Banks and Branches

376

Federal Reserve Board Publications

383

Index to Statistical Tables

385

Map of Federal Reserve System

248
252
258

Inside back cover

i

J|




Volume 44 * Number 3
Subscription Price of Bulletin
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|

1
|

International Gold and Dollar Flows
T H E INTERNATIONAL RESERVE POSITIONS

of many foreign countries were under pressure in 1957. Aggregate gold and dollar
holdings of foreign countries and international institutions nevertheless rose $65 million to $32.7 billion, less than one per cent
below the record level of September 1956.
After declining earlier in the year, holdings
rose $375 million in the fourth quarter, and
continued to increase in early 1958.
The international flow of gold and dollars
changed frequently. The reserve losses of
some Western European countries connected
with the Suez crisis continued into the first
quarter of 1957. In the third quarter a wave
of exchange rate speculation, affecting in
particular the pound sterling, cut even
deeper into the gold and dollar holdings of
some Western European countries. This
movement was halted and to some extent reversed in the fourth quarter.
Many countries suffered reserve losses
because of inflationary pressures. In France,
India, and Japan, the decline in reserves plus
the losses covered by drawings on the International Monetary Fund and, for France, on
the credit facilities of the European Payments Union, ranged from 40 to more than
60 per cent of official reserves at the beginning of the year.
By the year-end many countries had taken
new steps to bring inflationary pressures
under control and, with the ending of the
world-wide investment boom, most industrialized countries had achieved financial
stability.




GOLD AND DOLLAR HOLDINGS
FOMHSN COUNTRIIS AND INTUNATIONM INSTITUTIONS
Billions o( dollars
32

FOREIGN COUNTRIES

20

INTERNATIONAL
INSTITUTIONS

1955

1957

NOTE.—End-of-quarter data.

The United States gold stock rose in 1957
to $22.9 billion, the highest level since
January 1953; it declined early in 1958 as a
result of purchases by countries that lost
gold in 1957.
Foreign countries and international institutions sold $772 million of gold to the
United States in 1957, but added $147 million to their dollar holdings. Foreign countries purchased $690 million of gold for their
reserves from new production and other
sources. Many countries obtained dollars
through transactions with international institutions. Twenty countries drew on their
quotas with the International Monetary
Fund for a total of $913 million net.
Canada and many European countries increased their gold and dollar holdings in

241

242

FEDERAL RESERVE BULLETIN • MARCH 1958

1957, and some European countries that lost
reserves earlier in the year retrieved much of
their losses in the fourth quarter. In contrast, the holdings of nearly all non-European countries declined. The principal exceptions were some major oil-producing
countries, and a few countries that received
aid from the United States Government or
benefited from particularly favorable export
positions.
The United Kingdom and most Continental European countries that had payments
deficits nevertheless maintained the liberalization of international trade achieved in
previous years. Several countries with payments surpluses extended the degree of liberalization, and Italy and Germany further
reduced limitations on capital transactions.
On the other hand, some countries experiencing heavy reserve losses restricted imports, in addition to adopting measures of
financial restraint; and a few countries tightened restrictions on capital movements during the period of speculative pressures.
TRANSACTIONS WITH THE UNITED STATES

United States exports and imports of goods
and services were larger in 1957 than in
1956, exports by 12 per cent and imports by
4 per cent. During the second half of the
year, however, exports declined from earlier
peaks while imports changed little; the
United States export surplus was therefore
very large in the first half and then gradually
diminished.
The outflow of private and Government
capital from the United States also was
larger than in 1956, but the increase was not
sufficient in the first three quarters of the
year to offset the rise in the export surplus.
Recorded investment of foreign capital in
the United States declined during the year.




SELECTED COMPONENTS OF UNITED STATES
BALANCE OF PAYMENTS

[In millions of dollars]
1956

1957*

23,518
20,447

26,262
21,331

3,071

4,931

Net outflow of U. S. capital and
Government grants:
Private capital
Govt. loans3 4
Govt. grants

2,980
626
1,695

3,035
961
1,607

Net transfers of5gold and dollars
to foreigners

923

-625

Component
Merchandise and services:
Exports*
Imports2
Balance

p
1
2
3
4

Preliminary.
Excludes military transfers under grants.
Includes remittances, pensions, and military expenditures abroad.
Includes other short-term claims.
Excludes military grants.
5 As shown in table on p. 367.
SOURCES.—Net transfer of gold and dollars, Federal Reserve;
other series, U. S. Department of Commerce.

Unrecorded payments to the United States
(appearing in balance-of-payments statistics
as "errors and omissions") were very large
in the first three quarters. On balance, there
was a net transfer of gold and dollars to the
United States in the first three quarters, and
a net transfer of dollars to foreign countries
in the fourth quarter of the year.
Outflow of private capital. The net outflow

of private capital from the United States
reached a record $3 billion in 1957, 2 per
cent more than in 1956. About half of the
total went to Canada and Venezuela.
Direct investments in foreign branches
and subsidiaries of domestic corporations accounted for two-thirds of the outflow; the
remainder represented bank credit and new
security issues. Private investors in the
United States also provided substantial
amounts of capital to foreigners in conjunction with loans of the International Bank for
Reconstruction and Development.

INTERNATIONAL GOLD AND DOLLAR FLOWS

The increase of $560 million in commercial bank credit extended to foreigners
equaled the growth in 1956, and was almost
evenly divided between short- and mediumterm claims. The growth in short-term
claims was mainly in acceptance credits to
finance United States exports and the storage
or shipment of goods abroad.
Government loans and grants. The outflow
of United States Government capital (net
loans and nonmilitary grants) rose $250
million to $2.6 billion. The increase was
attributable to growth of Government loans
and other claims; there was a slight decline
in nonmilitary grants.
Disbursements by the Export-Import
Bank were larger than in 1956, primarily
because of the disbursement of $250 million
on a loan to the United Kingdom. Shortterm Government claims on foreign countries rose $300 million more than in 1956
with expansion of net receipts of foreign currencies from the agricultural surplus disposal program.
Foreign investments. Approximately $340
million in private foreign capital, 35 per cent
less than in 1956, was invested in long-term
assets in the United States other than Government securities. Foreigners were net
sellers of United States corporate stocks during the last half of the year, for the first time
since 1950.
Unrecorded payments to the United States
were larger than in 1956. There was an
inflow of $ 1 billion in the first three quarters
of 1957, but an outflow of $200 million in
the fourth quarter. These figures appear to
indicate a change in the direction of unrecorded capital movements.
GOLD MOVEMENTS

Official gold holdings of foreign countries
(excluding the U.S.S.R. and other Eastern




243

European countries) increased an estimated
$430 million in 1957 compared with an increase of $310 million in the previous year.
Foreign monetary authorities added an
estimated $690 million to their holdings
from new production and other sources; they
sold $172 million net to the United States
and transferred $88 million to the International Monetary Fund. Gold holdings of
the Fund declined $512 million, however, as
the Fund sold gold to the United States to
meet dollar drawings by member countries.
New production. Foreign gold production
(excluding the U.S.S.R.) rose in 1957 about
$45 million to an estimated $975 million,
reflecting almost entirely increased South
African output. In the first half of the year
a considerable portion of the new production
was added to official reserves, but in the
last half the greater part was diverted to
private holdings, apparently because of increased hoarding demands. Production in
the United States amounted to $64 million,
about the same as in each of the preceding
three years.
Sales to the United States. The International Monetary Fund sold $600 million of
gold to the United States and foreign monetary authorities sold $172 million net. The
largest sales were by Argentina ($75 million), Spain ($31 million), the Netherlands
($25 million), and the Philippines ($22 million). There were only a few small purchases from the United States.
The inflow of gold had an expansionary
effect on commercial bank reserves in this
country; over two-thirds of the impact occurred in the first half of the year. Offsetting
Federal Reserve open market operations
served to keep the level of member bank
reserves consistent with the policy of monetary restraint followed during the first three
quarters of 1957.

244

FEDERAL RESERVE BULLETIN • MARCH 1958

DOLLAR HOLDINGS

Foreign and international dollar holdings
rose $147 million in 1957. Private holdings
increased while official foreign holdings and
those of international institutions declined.
The bulk of foreign holdings consists of
bank deposits, Treasury bills, and other
United States Government securities. In the
past year, however, holdings in these forms
declined, as the table shows. The increase
occurred in other short-term assets, mainly
bankers' acceptances and commercial paper.
TRANSFERS OF GOLD AND DOLLARS
TO FOREIGNERS, 19571
[Net transfers from, or to ( - ) , the United States,
in millions of dollars]
Item

Year

Jan.- Apr.- July- Oct.Mar. June Sept. Dec.p

Net transfers, total. -625 -594
Net gold transfers.
Net increase in dollar holdings...
Deposits
U. S. Govt. sec.:
Short-term
Long-term....
Other2

- 1 3 -270

-772 -342 -318

252

-19

-93

147 -252
- 2 4 -372

305 -251
431 -104

345
21

-111 -192
-42
127
324
185

-98 -89
10 -244
-38
186

268
65
-9

p
1
2

Preliminary.
Includes international institutions.
Represents mainly bankers' acceptances and short-term commercial paper.

At various times, and especially in early
1958, changes in the form of short-term
dollar holdings appear to have followed
changes in the yields on various types of
assets. For instance, acceptances held for
foreign account at Federal Reserve Banks
rose in December 1957 and January 1958,
as a rapid decline in the Treasury bill rate
increased the yield advantage on acceptances. In early 1958 foreign holdings of
time deposits rose as yields on both Treasury
bills and acceptances continued to fall.




REGIONAL CHANGES IN GOLD AND
DOLLAR HOLDINGS

Eight European countries added to their
gold reserves and dollar holdings in 1957.
Three others—Belgium, the Netherlands,
and the United Kingdom—in which inflationary pressures and a speculative outflow
of capital led to gold and foreign exchange
losses in the first nine months of the year,
increased their holdings in the last quarter
with the return of more stable conditions.
Almost all of the less industrialized countries lost gold and dollars. Some of these
countries were attempting to carry out investment programs initiated under more
favorable circumstances; in many of them
domestic prices increased 10 per cent or
more, and in almost all of them imports were
at record levels.
Germany, Italy, Austria, and Norway increased their holdings by one-fifth or more.
German holdings rose $770 million, and
after allowance for German purchases of
$175 million of International Bank notes
the increase was comparable to that in 1956.
"Hot money" flows, primarily associated
with speculation on an upward revaluation
of the German mark, contributed in the third
quarter to large gains in German reserves
and to losses by other European countries,
in particular the United Kingdom and the
Netherlands. In the ensuing months these
flows were reversed.
France, the principal deficit country in
Europe, lost virtually all of its remaining
official reserves aside from gold held by the
Bank of France. France also utilized credits
totaling $440 million from the International
Monetary Fund and the European Payments
Union, an acceptance credit of $100 million
from commercial banks in the United States,
and part of the foreign exchange balances of
French commercial banks. The total de-

245

INTERNATIONAL GOLD AND DOLLAR FLOWS

terioration in its net gold and foreign exchange position exceeded $1 billion.
By early 1958 the French Government
had undertaken to limit the size of the budget
deficit and imposed restraints on the supply
of credit. As part of the stabilization program, substantial foreign assistance was
made available to France.
The gold and dollar holdings of the
United Kingdom, after some recovery during
the first half of the year from the impact of
the Suez crisis, fell in the third quarter,
mainly because of exchange rate speculation.
To restore confidence in sterling and bring
creeping inflation to an end, Bank rate was
raised from 5 to 7 per cent in September,
and other monetary andfiscalrestraints were
tightened. Thereafter sterling exchange
rates strengthened and gold and dollar holdings increased.
Almost all countries of the outer sterling
area drew down sterling balances to meet
deficits. Australia, which benefited from
strong exports of wool, was a notable exception. India utilized nearly $500 million in

foreign exchange assets, in addition to $200
million drawn from the Fund.
Canada and Venezuela added substantially to their gold and dollar holdings until
the fourth quarter, when their holdings declined. The inflow of private capital from
the United States fell in the second half of
the year. Eight other major trading countries in Latin America showed declines, if
account is taken of Fund drawings and the
special financing arranged to enable Colombia to reduce commercial arrears. In six of
these countries, increases in the cost of living
exceeded 12 per cent during 1957.
Holdings of most Asian countries declined, but those of Thailand and of some
major oil-producing countries increased. In
Japan credit restraint, including an increase
in the discount rate, halted inflationary tendencies and, coupled with tightened import
restrictions, ended the drain on reserves. In
the last months of the year, Japan's reserves
rose despite a fall in sterling trade credits.
Detailed statistics on the gold and dollar
holdings of foreign countries and international institutions are given on page 367.

FOREIGN GOLD AND DOLLAR HOLDINGS
SELECTED A R I A S
Billions of dollars
10
• 1ST OF WESIiHN EUIIOM

OIHE« LATIN

UNHID KINGDOM AND
OTHIH srcmiNO AHEA

I
19S3




I

I
1955

1957

1953

1955

1957

246

FEDERAL RESERVE BULLETIN • MARCH 1958

INTERNATIONAL SOURCES OF FUNDS

A number of countries were assisted in meeting temporary deficits in their international
payments by drawing on the resources of
international and regional organizations as
well as by borrowing from governmental
and private sources of capital.
The United Kingdom was better able to
weather the speculation against sterling in
the third quarter of 1957 because in late
1956 the International Monetary Fund had
provided a drawing and a standby arrangement totaling $1.3 billion and the ExportImport Bank had granted a credit line of
$500 million. After acting in September to
stop the reserve drain, the United Kingdom
buttressed its reserves by drawing $250 million of the Export-Import Bank credit and
obtaining the equivalent of a loan of $180
million through postponement of payments
of principal and interest due the United
States and Canada on loans made in 1945.
It also renewed its standby arrangements
with the Fund and the Export-Import Bank.
France drew the first half of its Fund
quota ($263 million) and utilized credits of
$176 million from the European Payments
Union. In January 1958 a Fund standby
arrangement of $131 million and European
Payments Union credits totaling $250 million were made available to meet future
French deficits, and at the same time the
United States gave France an option to postpone payments on certain loans.
Net drawings from the Fund in 1957
amounted to $913 million, of which more
than one-half was drawn by non-European
countries. At the beginning of 1958, Fund
resources readily available to member countries (excluding the United States, Canada,




and Germany, Fund creditor countries)
may be estimated at $1.5 billion, or 7 per
cent of their gold and dollar holdings. Of
this sum, $1 billion represents amounts available to countries under existing standby arrangements and the remainder the unused
portion within the first half of the quotas of
these countries. The Fund's attitude toward
drawings within the first half of a member's
quota has been liberal, provided the member
makes reasonable efforts to solve its financial
problems.
Since 1950, Western European countries
have been able to borrow from the European
Payments Union. Nearly all of the debts
outstanding in early 1958 had their counterpart in credits granted to the Union by other
members, principally by Germany ($1 billion), Belgium, and the Netherlands. After
settlement of the deficits and surpluses for
1957, seven countries with over-all deficit
positions had aggregate unused borrowing
rights of $777 million, including the recent
credits to France.
Countries in deficit also received credits
directly from countries with strong balanceof-payments positions. In 1957 six Latin
American countries renewed, but did not
draw on, exchange agreements with the
United States Treasury. Chile obtained a
credit from the Export-Import Bank in connection with its stabilization program, and
Colombia received a loan to assist in the
settlement of payments arrears. The Netherlands received a short-term credit of $80
million from the German central bank.
Private capital contributed toward international payments stability in 1957, although at times speculative movements accentuated the foreign exchange difficulties of

INTERNATIONAL GOLD AND DOLLAR FLOWS

some countries. Commercial banks in the
United States renewed lines of credit to
Brazil, as well as credits to Chile and Peru
made available in conjunction with Treasury
exchange agreements and Fund standby arrangements. They also made loans to Colombia to help in settling arrears, and to the
Philippines.
German commercial banks extended credits of more than $100 million to the Governments of Belgium and the Netherlands.
The discount rate policies of leading European countries facilitated the outflow of




247

capital from Germany; interest rates in Germany, accompanying two reductions in the
discount rate, declined, while those in most
other European money markets rose or remained high.
The international means of payment at a
country's disposal thus often exceed its reported reserves. In recent years supplementary sources of foreign exchange have
become increasingly available to countries
having international payments difficulties,
especially when they adopt effective measures to restore internal financial balance.

Preliminary Findings of the 1958
Survey of Consumer Finances
dicated a less favorable situation than in the
preceding three years but were very similar
to the reports on this question in early 1954
and early 1949.

CONSUMERS EARLY THIS YEAR viewed
their financial positions and prospects less
favorably than a year ago and expressed
concern about the general business outlook,
according to the preliminary findings of the
thirteenth annual Survey of Consumer Finances.1 This Survey was conducted in
January and February 1958 by the Board
of Governors of the Federal Reserve System
in cooperation with the Survey Research
Center of the University of Michigan. Personal interviews with a representative sample
of the consumer population provided information on consumers' financial positions,
views about their own and general economic
prospects, and their plans for purchasing
durable goods and houses during the year.
In reporting their views about their pressent financial situations, about one-third of
all spending units said they were better off
than a year ago while another one-third said
they were worse off. These proportions in-

The decline in wage and salary income
in recent months was reflected in an increase
in the proportion of consumers who reported
they were making less than a year ago. In
January-February of this year 26 per cent
of the consumers said their rate of income
was lower than it had been a year earlier.
This was the largest proportion reporting
an income decline for any Survey in recent
years and was somewhat larger than in early
1954 and early 1949. About 36 per cent
of all spending units reported that they were
earning more early this year than a year ago.
This proportion was lower than in any
Survey since early 1950.

1
These findings are based on preliminary tabulations of approximately 2,600 interviews taken in January and February 1958 in the 12 largest metropolitan
areas and 54 other sampling areas throughout the
country. Additional interviews and adjustments for
differential response rates in various strata of the
sample will be incorporated in the tabulations which
will be published in later articles in the Federal Reserve BULLETIN. In past years differences between
preliminary and final data have been small.
The Survey of Consumer Finances, like other
sample surveys of this type, is subject to response as
well as sampling errors. As a result of such factors,
undue importance should not be attached to small
changes in the data from year to year. For tables of
sampling errors in Survey data see the Federal Reserve

BULLETIN, June 1957, p. 638.




The decline in personal income in the
closing months of 1957 had little effect on
consumer incomes for the year as a whole
and the distribution of money income received in 1957 was very similar to that
reported for 1956. There also appeared to
be no significant changes in the distribution
of holdings of liquid assets other than currency from early 1957 to early 1958. About
one-fourth of the consumers in both years
reported no liquid asset holdings while about
one-third reported substantial holdings—
$1,000 or more.
There was a sharp contrast between consumers' views about general business con-

248

249

1958 SURVEY OF CONSUMER FINANCES

ditions and their appraisals of their own
financial prospects. While many consumers
were pessimistic about the business situation during the coming year, very few expected their own incomes to decline. About
two-fifths of the consumers interviewed in
January and February expected "bad times"
during the year and about one-third expected "good times," a less favorable expectation than reported in any other Survey
of Consumer Finances. Nevertheless, nearly
three-fourths of all spending units expected
to be making at least as much at the beginning of next year as they were making early
this year, and half of these expected to be
making more. Only one-tenth expected
their rate of earnings to decline in the coming year. Consumers' views as to their
income prospects were only moderately
less favorable than in other recent Surveys
and more favorable than in early 1954 and
early 1949.
Nearly one-half of all spending units expected retail prices to rise over the year.
Expectations of price increases were expressed somewhat more frequently by those
in the middle and lower income brackets
than by the upper income groups.
Consumers' plans to purchase major items
during 1958 present a picture generally consistent with current market conditions.
Plans to purchase new and existing houses
were less frequent than in 1955-57, but
somewhat more frequent than in early 1954.
Intentions to make expenditures on home




improvements and maintenance were expressed as frequently as in other recent years.
Plans to purchase furniture and appliances
were expressed by over one-fourth of the
spending units, about the same as in early
1955 and early 1956 and only slightly below the proportion planning such purchases
a year ago. For both home improvements
and maintenance and furniture and household appliances, purchase plans were reported more frequently in early 1958 than
in early 1954.
In early 1958 the proportion of consumers expressing plans to purchase new
automobiles was substantially below the
proportion reporting such plans in other
recent years. On the other hand, there was
a sharp increase in the frequency of plans
to buy used cars. The median amount that
consumers expected to spend for new cars
this year was a little below that of a year
ago, while the median amount they expected
to spend for used cars was almost unchanged.
The data shown on buying plans serve as
an index of consumers' present attitudes
toward such purchases rather than as a
forecast of the number of actual purchases
during the coming year. Many consumers
do not plan purchases a year in advance and
those expressing plans early in the year may
alter their plans in the light of subsequent
changes in the general economic situation
and their own financial positions.

NOTE.—The summary table begins on
the following page.

250

FEDERAL RESERVE BULLETIN • MARCH 1958
PRELIMINARY RESULTS OF THE FEDERAL RESERVE SURVEY OF CONSUMER FINANCES
EARLY 1958, WITH FINAL RESULTS FOR EARLY 1948-57 x

[Percentage distribution of spending units]
Consumer financial positions

1958

1957

1956

1955

1954

1953

1952

1951

1950

1949

1948

Evaluation of own financial situation
Better off than a year ago
N o change
Worse off than a year ago
Don't know, not ascertained
All cases

33
36
30
1

40
35
23
2

40
35
23
2

38
33
27
2

36
31
31
2

38
33
26
3

33
29
35
3

32
29
37
2

32
32
34
2

33
35
30
2

29
28
39
4

100

100

100

100

100

100

100

100

100

100

100

49
33
17
1

30
41
27
2

42
35
21
2

43
33
21
3

Past change in income rate2
Making more than a year ago
N o change
Making less than a year ago
Don't know, not ascertained
All cases

36
36
26
2

45
35
18
2

41
38
18
3

38
37
23
2

41
34
23
2

48
32
16

4

46
33
17
4

100

100

100

100

100

100

100

100

100

100

100

14
22
23
17
10
9

Money income in prior year, before taxes
Under $1,000
$l,000-$l,999
$2,000-$2,999
$3,000-$3,999
$4,000-$4,999
$5,000-$7,499
$7,500-$9,999
$10,000 and over
All cases ....

9
13
12
12
12
25
10
7

9
12
12
12
14
24
9
8

11
12
13
14
14
22
8
6

10
13
14
17
14
21
6
5

10
13
14
16
16
21
5
5

11
14
16
18
15
17
5
4

13
15
18
18
15
14
4
3

13
17
19
19
12
14
3
3

14
19
21
19
11
11
2
3

12
18
23
20
12
10
2
3

100

100

100

100

100

100

100

100

100

100

5
}100

Liquid asset holdings3
Zero
$1-$199
$200-$499
$500-$999
$l,000-$l,999
$2,000-$4,999
$5,000-$9,999
$10,000 and over

25
18
14
11
10
13
5
4

24
17
14
12
1
1
13
5
4

28
15
12
12
11
12
6
4

29
17
12
10
10
12
6
4

26
15
13
13
1
1
13
5
4

29
16
12
11
12
11
5
4

31
17
13
9
10
12
5
3

28
16
14
11
12
11
5
3

31
16
11
10
10
13
6
3

29
16
13
11
11
12
5
3

27
15
13
12
12
12
5
4

All cases

100

100

100

100

100

100

100

100

100

100

100

1 Preliminary data for early 1958 are based on the first 2,584 spending units interviewed and have not been adjusted for nonresponse.
Data for previous years are based on complete surveys and adjusted
for nonresponse.
2 Includes only nonfarm spending units.




3
Liquid assets include U. S. Government savings bonds, checking
accounts, savings accounts in banks, postal savings, and shares in
savings and loan associations and credit unions; currency is excluded.
Data prior to 1957 include also marketable U. S. Government bonds
which were held by about 1 per cent of all spending units in 1957.

251

1958 SURVEY OF CONSUMER FINANCES

PRELIMINARY RESULTS OF THE FEDERAL RESERVE SURVEY OF CONSUMER FINANCES—CONT.
x
EARLY 1958, WITH FINAL RESULTS FOR 1948-57
[Percentage distribution of spending units]
Consumer plans and expectations

1958

1957

1956

1955

1954

1953

1952

1951

1950

1949

1948

27
46
17
10

28
47
13
12

Making more a year from now
No change
Making less a year from now
Don't know, not ascertained
All cases

37
35
11
17

40
35
7
18

37
36
8
19

39
36
6
19

29
35
15
21

34
33
10
23

37
30
8
25

3333

Expected change in income rate 2
28
32
10
30

100

100

100

100

100

100

100

(4)

100

100

100

47
14
25
14

47
6
26
21

100

100

60
7
13
20

64
5
9
22

59
5
12
24

43
8
25
24

3333

All cases

33
9
39
19

3333

Good times
Fair times
Bad times
Uncertain, not ascertained

3333

Expected general business conditions5
40
15
17
28

100

100

100

100

100

(4)

(4)

(4)

100

8.8

6.4

8.5

Plans to purchase6
Houses2
Home improvement and maintenance2 7
New automobiles
Used automobiles
Furniture and major house appliances

7.1

8.7

9.4

9.4

6.6

4

8.4

4

4

7.0
4

22.8
6.6
10.5

23.4
8.5
8.4

22.2
8.4
7.2

22.0
8.2
7.5

19.6
7.9
6.4

16.9
9.0
6.2

()
6.8
6.0

()
6.6
5.5

()
10.6
6.9

()
11.8
6.8

28.3

29.4

28.0

28.5

26.9

31.9

23.2

27.4

28.4

30.9

7.5
()
9.7
4.1
27.4

Median planned expenditure8
New automobile
$2,850 $2,920 $2,810 $2,800 $2,570 $2,500 $2,340 $1,970 $1,920 $1,990 $1,800
Used automobile
900
950
760
590
540
630
890
800
810
750
600
Furniture and major household
appliances
290
300
290
290
330
300
300 290 250 240
330
Home improvement and maintenance2 7
410 460
370
330
300
4
5

Data not available.
Data are based on question: "Now considering the country as a
whole, do you think that during the next 12 months we will have
good times or bad times, or what?"
6 Spending units that reported they would, probably would, or
possibly would buy, or that had already bought, in Survey year.
7
Includes only planned expenditures of $50 or more for improvement and maintenance of home.




8 Data for automobiles are based on planned expenditures of spending units that reported they would or probably would buy or had
already bought; data for other items include, in addition, planned
expenditures of spending units that reported they possibly would
buy. Medians shown are interpolated from bracket amounts starting
in 1952.

T H E YEAR 1957 was a difficult one for
those of us charged with appraising financial
and economic events and formulating appropriate monetary policy. From its opening and on during much of the year, inflationary pressures were dominant in this
country and abroad. In commodity markets, industrial prices were continuing to advance despite generally downward reaction
in prices of some internationally traded
basic materials following the Suez crisis.
In consumer markets, prices of goods and
services were advancing at a very rapid pace
for a nonwar period. Prices of common
stocks, which had tended down from mid1956 to early 1957, rose sharply to new
highs in midsummer under the influence of
creeping inflation doctrine and of widening
confidence that the large capital expansion
in which business was engaging would be
adequately supported by the demands of
a rapidly growing population for a rising
standard of living. The strength of inflationary pressures was exemplified by the
marked advances being recorded in the
gross national product measured in current
dollars as compared with the relatively modest gains that were being obtained in the
physical volume of total output.
In spite of Federal Reserve actions taken
to resist inflationary trends—including six
increases of Federal Reserve Bank discount
NOTE.—Statement of William McChesney Martin,
Jr., Chairman, Board of Governors of the Federal
Reserve System, before the Subcommittee on the Federal Reserve of the Senate Committee on Banking
and Currency, Feb. 19, 1958.




252

rates in 1955 and 1956 and the pursuance
of a restrictive credit policy—money lost its
value at a rate that was a matter of great
concern to all. Inflationary excesses had
clearly gotten ahead of us and the economy
stood in danger of an inflation crisis. The
adjustment problems that the economy is
confronting today are the aftermath of those
excesses.
As a nation, we were trying to do too
much too fast, and heavy pressure was
exerted against the available supply of savings. In retrospect, we underestimated the
speed and force of the inflationary boom
and the widespread growth in speculative
attitudes and commitments. Consumer instalment credit rose substantially in 1955
when terms were sharply relaxed and consumers used credit more freely than ever
before in the purchase of a record number
of new automobiles. Businesses greatly
increased their expenditures for plant and
equipment. The rise from 1955 to 1956
amounted to more than one-fifth for business as a whole and this advanced level was
further exceeded in 1957. Stock investors
were too optimistic in capitalizing the income and dividends which this investment
might yield. Bankers and other lenders
greatly expanded their commitments to lend
in these years. Also, liquidity positions of
banks and businesses were being reduced as
their short-term liabilities were increasing
faster than their holdings of cash and Government securities. Labor unions sought
wage increases—and commitments for fu-

ECONOMIC POLICY CONSIDERATIONS

ture increases—that pressed against or exceeded gains in productivity. State and
local governments borrowed record amounts
through the capital markets in an effort to
meet the needs of their citizens for community facilities and services.
Inflationary trends continued through the
summer months of last year. There was an
alarming spread of the belief, not only in
this country but also abroad, that creeping
inflation under modern economic conditions
was a chronic and inevitable condition. Reflecting this view, common stocks, the most
popular hedge against inflation, rose sharply
in price in July to a level where for the first
time in two decades their yields fell below
the yields on high-grade bonds. Also, credit
demands generally continued to show great
strength, and interest rates were rising.
Large city banks on August 7 raised their
lending rate to prime business borrowers
from 4 to AV2 per cent. In this situation,
Federal Reserve Bank discount rates, which
were below market rates by a widening margin, were raised in mid-August from 3 to
ZV2 per cent, thus increasing costs to member banks operating on the basis of borrowed reserves.
In late summer and early autumn, developing uncertainties here and abroad began to affect the short-term economic outlook. In European exchange markets,
widespread expectations of changes in exchange rates fostered large speculative
movements of funds between European centers. These expectations in part reflected
further accentuation of inflationary developments in some key countries, despite actions
to tighten credit that were taken in various
countries during the summer. It was not
until late September, after the Bank of England established a 7 per cent discount rate,
that it became clear that key foreign cur-




253
rency values would be maintained and that
inflation would be strongly resisted.
In this country, the unexpected curtailment in defense payments and changes in
procurement policies that were inaugurated
during the summer, partly to avoid breaking through the debt ceiling, had an unsettling effect on business. In September,
nonagricultural employment, which had
been at a record level in August, began to
show signs of slackening. The Board's
index of industrial production declined
slightly. Reflecting these and other developments, common stock prices in late September broke through the trading range
that had prevailed during the past two years.
With changing attitudes toward the economic outlook, production and other adjustments that had been occurring for some
months in various lines of activity, including some capital goods lines, came to be
reappraised by businessmen, investors, and
the public generally. In contrast to earlier
indications of strong credit demands, bank
loans to business during early autumn decreased contrary to usual seasonal tendencies.
The pace of business was maintained for
a time despite these uncertainties. By late
October, the composite of most recent economic information suggested that inflationary pressures were abating, and open market
operations were modified to lessen restraint
on bank credit and monetary expansion.
By mid-November, information becoming
available, incomplete though it was, indicated that a general downward adjustment
was setting in. In response to this change
in basic economic conditions, Federal Reserve Bank discount rates were reduced
from 3V2 to 3 per cent.
Since that time, the use of open market
and discount policies has been complemen-

254

FEDERAL RESERVE BULLETIN • MARCH 1958

tary. Open market operations have provided sufficient reserves to permit member
banks not only to repay a substantial portion of their indebtedness to the Reserve
Banks, but also to accumulate some addition
to reserves available for bank credit expansion. Discount rates were lowered again
in mid-January, from 3 to 2% per cent.
At the end of 1957, stock market credit
to customers of brokers and banks for purchasing and carrying listed securities was
less than at midyear and back to the level
of early 1955. Thus, the need for using the
higher level of margin requirements, established in early 1955 to prevent an excessive
expansion of stock market credit, had
abated. The Board of Governors in midJanuary reduced margin requirements for
purchasing or carrying listed securities from
70 to 50 per cent.
System actions have contributed to a
marked easing in the credit and capital markets. This is illustrated dramatically by the
very sharp drop in market rates of interest,
the sharpest drop for any comparable period
of which I have knowledge. Yields on
Treasury 90-day bills dropped nearly two
percentage points—from over 3Vi to a recent low of \Vi per cent. This adjustment
in credit and capital markets is helping to
facilitate and cushion other adjustments in
the economy as well as to strengthen demands in important areas dependent on
credit financing. It is thus, along with other
Government programs, helping to set the
stage for recovery in activity and employment.
We all share the hope that recession will
be moderate and short lived, but it is not
possible to be completely certain about the
future course of economic activity. There
is a range of views currently held regarding
the duration and extent of this recession and




of the timing and vigor of the ensuing recovery. In my own view, the underlying
strengths of the economy are many. The
inflationary trends seem to have halted before creating maladjustments of such severity as to lead to a protracted period of liquidation and structural realignment in the
economy. After not too long a period of
readjustment, healthy revival should set in,
progressing to new records of economic performance and new high levels of national
well being. A great deal depends upon the
speed with which needed readjustments are
made.
We are all, of course, well aware that
reasoning by analogy may be misleading
and that history does not repeat itself.
Nevertheless, it may be noted that the downward movement from the third quarter 1957
peak has been reminiscent in many ways
of the declines that occurred in 1948-49
and in 1953-54. In these two postwar recessions, lows in activity were reached in
less than a year from the cyclical peak and
recovery to new high levels of output, demands, and employment was rapid and substantial. In both recessions, the industrial
production decline was limited to about 10
per cent from high to low. With the exception of the catastrophic depression of the
early 1930's, the downward phase of every
cycle since World War I has been over or
virtually over in the course of about a year.
Many basic forces in the present situation
are favorable to hopes for recovery. These
include:
(1) Credit and capital market conditions
have already responded to relaxed monetary
policy and are much easier than they were
a few months ago. Other important financial adjustments have already been made
or started. Stock yields, for example, have
adjusted to a more normal relationship with

ECONOMIC POLICY CONSIDERATIONS

high-grade bond yields. By borrowing from
the capital market, moreover, business firms
have been repaying bank debt, thus rebuilding the liquidity positions of both financing
institutions and business enterprises.
(2) Consumer incentives to achieve still
higher standards of living are strong, and research continues to provide new products of
wide consumer appeal. As a group, businessmen and consumers continue to have
confidence in the long-term growth prospects for our economy. Total retail sales
advanced in both December and January
and were well above those a year earlier
despite lower sales of new automobiles.
(3) Population increase has been maintained at a rapid pace—the rise of 1.8 per
cent in 1957 compares with a postwar average of 1.7 per cent, and hence the market
is expanding steadily.
(4) Consumer incomes have shown some
cyclical decline recently, but the decline has
been small and moderated by unemployment compensation benefits. Consumer demands are supported by a record volume of
financial assets, the ownership of which is
widely distributed. Growth in such assets
was rapid in 1956 and 1957, while growth
in consumer instalment and mortgage debt,
though not small, was at a much slower
rate than in 1955. The availability and
terms of mortgage credit have recently become more favorable to borrowers. New
housing starts increased in January and
were moderately above their low in the
spring of 1957.
(5) At the State and local government
level, community demands for schools and
teachers, for roads, public buildings, and
other community facilities are continuing
large and insistent. Bond issues of State and
local government authorities have advanced
to record levels.




255
(6) For the Federal Government, postwar budgets have been dominated by the
need to cope with critical international
stresses and tensions and to provide adequate defense under conditions of major
scientific advance and rapid technological
change. National security and related problems continue to be urgent.
(7) Insofar as international economic
developments are concerned, Western Europe still shows strength. Industrial activity, while no longer expanding, has generally been maintained at or close to record
levels. In general, balance-of-payments
positions have improved although in several
countries reserves of gold and foreign exchange are not as large as might be desired.
Outside Europe, however, raw materials
producing countries are facing difficulties
because of declines in volume and prices of
their exports.
A primary uncertainty with respect to the
timing of economic revival and renewed
growth relates to the course of business outlays for new plant and equipment. Some
observers view the business capital goods
boom of the past three years as having provided a margin of industrial capacity over
prospective demands greater than can be
absorbed quickly. These observers tend to
expect a more protracted period of adjustment than took place in the two preceding
cycles.
This concern may turn out to have been
well founded, but it may be noted that capacity never appears more excessive than
in the midst of receding activity. Recovery,
in due course, can certainly be expected
to be accompanied by effective and profitable use of the economy's capacity to produce and by still further additions to capacity. The important factors working to ex-

256

FEDERAL RESERVE BULLETIN • MARCH 1958

pand business capital investment in the
period ahead should not be minimized. The
advance in the technology of production, in
part the result of the huge investment in research of recent years, has been rapid and
can be expected to continue. Incentives to
reduce costs, to meet competition, and to
sustain or improve profitably, are strong.
History shows that our market economy
has cyclical characteristics, and the consequences of this irregularity in terms of hardship and unemployment are of deep concern
to everyone. When downward readjustment becomes unavoidable, it is incumbent
on business enterprises, financial institutions, and labor organizations, as well as
Government generally, to adjust policies and
programs to foster recovery. We have been
concerned, for example, at the decline in
output and employment while prices generally have been maintained and some prices
even have risen further. Currently, it may
be noted, consumer prices reached a new
high in November and remained at about
that high in December and January. How
soon recession is checked and recovery is
resumed will be influenced by the rapidity
with which economic corrections and adaptations are made in factors beyond the province of monetary policy, that is to say, in
business pricing policies, selling practices
and productive efficiency; in wage bargaining; in various financing arrangements; and
in the incentives to consumers to buy. In
the past, price reductions during periods of
contraction served to stimulate increased
buying and output and thus to contribute to
general recovery and expansion.
Undoubtedly, lower prices now would prove to
have expansive benefits for economic activity generally.
If needed adjustments are promptly made,
the current recession may be moderate and




short lived. Furthermore, there will be the
possibility that revival may develop without
renewed inflationary tendencies. Under
such circumstances, the task of monetary
policy would be to foster such revival and
to encourage resumption of orderly growth.
If revival in over-all economic activity
becomes exuberant, however, there will be
an accompanying danger of resurgence of
inflationary pressures. Postwar experience
has demonstrated that, in a period of expanding demand, upward pressures on
prices and costs can develop quickly. Once
under way, inflationary movements tend to
spread themselves throughout the economy,
not only because of normal market reactions, but also because of a variety of institutional arrangements.
When contractive tendencies in economic
activity set in, there is always the hazard that
recession may be deeper and more protracted than many anticipate, with a greater
degree of underutilization of manpower and
industrial resources and with manifest deflationary tendencies. In such an eventuality, further monetary action would need
to be considered, both to increase the liquidity of the economy and to encourage expansion of spending financed by credit. Monetary policy by itself, however, cannot assure resumption of high-level employment
and sustainable economic growth, although
ready availability of credit at reasonable cost
is an essential ingredient for recovery.
Those charged with responsibility for national economic policies must at all times
reckon with the dangers both of inflation
and of deflation. The central policy problem, in one sense, is to prevent either inflationary trends or deflationary trends from
becoming dominant. Public policies for
one objective or another can have effects
that go far beyond those that are intended.

ECONOMIC POLICY CONSIDERATIONS

Both fiscal and monetary policies must be
carefully formulated to exert enough pressure or ease but not too much. That is a
difficult task. It is one that you and I both
must live with every day, and do the very
best we can to reach the judgments and
come to the decisions which in the long run
will prove to have been wise.
As I have said on many occasions, antiinflationary policies and anti-deflationary
policies are inseparably linked. Excesses
on the upside must be avoided in order to
avoid the heavy costs and personal hard-




257
ships that unfortunately develop during the
ensuing contraction. Now that we are in
the contractive phase, we must take whatever actions are needed to minimize the
hardships and to foster vigorous recovery.
But in so doing we also must recognize that
excessive stimulus during recession can sow
seeds of inflation that can grow to jeopardize our long-run stability and our economic
strength at a time when as a nation we are
confronted with a special urgency to maintain all the productive strength we can muster on a sustainable basis.

Credit Extended by Banks
to Real Estate Mortgage Lenders
Credit extended to real estate mortgage lenders
by weekly reporting member banks as of February
12, 1958 amounted to $1,009 million, $80 million
less than reported at the previous survey on August 14, 1957. Commitments to extend additional
credit to these lenders declined $72 million to
$673 million.
Loans to real estate mortgage lenders secured
by the pledge of real estate mortgage loans
amounted to $728 million and accounted for $47

million of the decrease since August. As in previous surveys these loans were largely to real
estate mortgage companies.
The foregoing information was obtained by a
special survey of all types of credit extended by
commercial banks to real estate mortgage lenders.
Results of earlier surveys have been published in
the September 1957 and earlier Federal Reserve
BULLETINS.

CREDIT EXTENDED TO REAL ESTATE MORTGAGE LENDERS BY WEEKLY REPORTING MEMBER BANKS
IN LEADING CITIES, FEBRUARY 12, 1958 AND SELECTED PRIOR DATES
[In millions of dollars]
Increase
(or decrease —)

Outstanding on
Item
Feb. 12,
1958

Real estate mortgage loans purchased from real estate mortgage lenders under
resale agreement, total

Aug. 14,
1957 to
Feb. 12,
1958

Feb. 13,
1957 to
Feb. 12,
1958

Total loans to real estate mortgage lenders
Unused portions of firm commitments to purchase real estate mortgage loans
from real estate mortgage lenders with or without resale agreement, or to
make secured or unsecured loans to real estate mortgage lenders, total
Insurance companies
Mortgage companies
Otheri

201

257

338

-20

-75

33
88
79

62
98
96

235
90
12

5
-4
-21

-23
-15
-37

728

775

919

982

-47

-191

4
673
50

3
715
57

5
845
68

11
911
59

2
-41
-7

-1
-171

100

114

102

-13

-2

11
38
65

3
43
57

4
24
60

,089

1,278

1,408

-80

-268

673

746

788

1,295

-72

-114

18
541
114

Insurance companies
Mortgage companies
Otheri

181

1,009

Insurance companies
Mortgage companies
Otheri
Loans to real estate mortgage lenders, not secured, or secured other than by
the pledge of real estate mortgage loans owned by the borrowers, total




Aug. 10,
1955

6
37
57

Loans to real estate mortgage lenders secured by the pledge of real estate mortgage loans owned by the borrowers, total

Revised.
i Savings and loan associations, mutual savings banks, builders
and other organizations (other than banks) that make or hold substantial amounts of real estate loans.
NOTE.—Banks reporting less than $1 million of these loans and

Feb. 13,
1957

39
84
59

Insurance companies
Mortgage companies
Otheri

r

Aug. 14,
1957 r

66
562
118

75
581
132

183
894
219

-48
-21
-4

-57
-40
-17

-18

4
-5
-1

commitments at Aug. 8, 1956 and Aug. 14, 1957 were not asked to
report in other surveys, but their Aug. 8, 1956 figures are included in
Feb. 13, 1957 data, and their Aug. 14, 1957 figures are included in
Feb. 12, 1958 figures for comparative purposes. Details may not
add to totals because of rounding.

258

Bulletin Subscription Rate
For Member Banks
The Board of Governors has sent the letter printed below to the presidents of all
member banks advising them that the Federal Reserve BULLETIN is now available to
member banks and branches at a special annual subscription rate of $2.00.

March 7, 1958
As its means of official communication with member banks of the Federal Reserve System, the Board of Governors sends a copy of its monthly Federal Reserve BULLETIN without
charge to the head office of each member bank. This it will continue to do.
In 1939 the Board adopted the practice of sending a free subscription to the BULLETIN
to each branch of a member bank the business of which was sufficiently important to justify
the Board in making a copy available to the managing officer of the branch, with a limit of
50 copies to any one member bank. The Board has had occasion recently to reconsider this
practice in the light of current conditions and has concluded for a number of reasons that
free distribution to branches, both foreign and domestic, should be discontinued after the
issue for April 1958. It also concluded, however, that additional subscriptions in such number as each bank might desire, either for branch or head office use, should be made available
at a reduced rate.
Accordingly, beginning with the May 1958 issue, if your bank wishes to have additional
copies of the Federal Reserve BULLETIN, they will be sent in any number desired to either
your head office or your branches at a special rate of $2 a year for each subscription payable
in advance. This will make the BULLETIN available to all member banks on a uniform basis.
As current paid subscriptions expire they will be renewable at this rate. Subscriptions should
be sent to the Board of Governors of the Federal Reserve System, Division of Administrative
Services, Washington 25, D. C.
Paid subscriptions to the BULLETIN at the $2 rate are available only to member banks.
In all other domestic subscriptions where a charge is made the regular price of $6 applies.




Very, truly yours,
S. R.

CARPENTER,

Secretary.

259

Law Department
Administrative interpretations, new regulations, and similar material

(b) 11-1/2 per cent of its net demand
deposits.
2. If in a reserve city (except as to any
bank located in an outlying district of a reserve
city or in territory added to such city by the
extension of the city's corporate limits, which,
by the affirmative vote of five members of the
Board of Governors of the Federal Reserve
System, is permitted to maintain the reserves
specified in paragraph 1 above)—
(a) 5 per cent of its time deposits, plus
(b) 17-1/2 per cent of its net demand
deposits.
3. If in a central reserve city (except as to
any bank located in an outlying district of a
central reserve city or in territory added to such
city by the extension of the city's corporate
limits, which, by the affirmative vote of five
members of the Board of Governors of the
Federal Reserve System, is permitted to maintain the reserves specified in paragraph 1 or 2
above)—
(a) 5 per cent of its time deposits, plus
(b) 19-1/2 per cent of its net demand
deposits.

Reserves of Member Banks
The Board of Governors amended the Supplement to Regulation D so as to reduce the reserves
against net demand deposits required to be maintained by member banks with Federal Reserve
Banks. The reductions became effective as to
member banks not in reserve and central reserve
cities at the opening of business on March 1, 1958,
and as to member banks in reserve and central
reserve cities at the opening of business on February 27, 1958. There is set forth below the text
of the amended Supplement:
SUPPLEMENT TO REGULATION

D*

Pursuant to the provisions of Section 19 of the
Federal Reserve Act and Section 2(a) of its Regulation D, the Board of Governors of the Federal
Reserve System hereby prescribes the following
reserve balances which each member bank of the
Federal Reserve System is required to maintain on
deposit with the Federal Reserve Bank of its
district:
1. If not in a reserve or central reserve city—
(a) 5 per cent of its time deposits, plus

* Changes in this Supplement to implement a further reduction of one-half percentage point in the reserves required against net
demand deposits (noted on page 298 of this BULLETIN) will be reported in the April issue of the BULLETIN.

APPLICATION OF GENERAL CONTRACT CORPORATION FOR EXEMPTION OF
SUBSIDIARIES FROM BANK HOLDING COMPANY ACT
The Board of Governors of the Federal Reserve
System on February 10, 1958, issued an Order
denying the application of General Contract Corporation for an exemption of certain subsidiary
corporations under Section 4(c)(6) of the Bank
Holding Company Act of 1956. There are published below a copy of the Board's Order (Docket
No. BHC 4-17, 19-27) and accompanying Decision and a copy of the Report and Recommended Decision of the Hearing Examiner.
ORDER DENYING APPLICATIONS
General Contract Corporation, a Missouri corporation, and a bank holding company within the




meaning of Section 2(a) of the Bank Holding
Company Act of 1956, has filed applications for
determinations by the Board of Governors of the
Federal Reserve System that certain subsidiary
corporations, hereinafter named, and their activities are of the kind described in Section 4(c)(6)
of the Bank Holding Company Act of 1956 (12
USC 1843) and Section 5(b) of the Board's
Regulation Y (12 CFR 222.5(b)), so as to make
it unnecessary for the prohibitions of Section 4
of the Act with respect to retention of shares in
nonbanking organizations to apply in order to
carry out the purposes of the Act. The subsidiary
corporations of General Contract Corporation

260

261

LAW DEPARTMENT

on behalf of which the applications were filed, with
the hearing docket number of each, are:
Washington Fire and Marine Insurance
Company
(BHC-4)
Insurance Company of St. Louis
(BHC-5)
Midwestern Fire and Marine Insurance
Company
(BHC-6)
Securities Investment Company of St.
Louis and its subsidiaries:
(BHC-7)
Securities Credit Company (Mo.)
Securities Loan Company
Securities Credit Company (Fla.)
Broadway Insurance Agency, Inc.
Securities Insurance Agency, Inc.
Davidson Insurance Agency, Inc.
Investment Insurance Agency, Inc.
Craighead Insurance Agency, Inc.
Palafox Insurance Agency, Inc.
Industrial Loan Company
(BHC-8)
Industrial Finance Company of Wellston (BHC-9)
Springfield Union Finance Company
(BHC-10)
Quincy Union Finance Company
(BHC-11)
Baden Loan Company
(BHC-12)
General Contract Loan Company
(BHC-13)
SIC Loan Company
(BHC-14)
General Loan Company
(BHC-15)
General Contract Loan Company, Inc.
(BHC-16)
General Contract Loan Brokers, Inc.
(BHC-17)
Apex Insurance Agency, Inc.
(BHC-19)
Jefferson-Gravois Insurance Agency, Inc. (BHC-20)
Reid-Kruse, Inc.
(BHC-21)
St. Louis-Washington Insurance Agency,
Inc.
(BHC-22)
Northwestern Insurance Agency, Inc.
(BHC-23)
Springfield Insurance Agency, Inc.
(BHC-24)
Quincy Insurance Agency, Inc.
(BHC-25)
Sterick Insurance Agency, Inc.
(BHC-26)
Texarkana Agency, Inc.
(BHC-27)
A hearing having been held pursuant to Section
4(c)(6) of the Bank Holding Company Act of
1956 and in accordance with Sections 5(b) and
7(a) of the Board's Regulation Y (12 CFR
222.5(b) and 222.7(a)); the Hearing Examiner
having filed his Report and Recommended Decision wherein he recommended that all the above
requests be denied; Applicant having filed Exceptions and Brief with respect only to requests
numbered BHC-8 and BHC-12; the Board having
given due consideration to all relevant aspects of
the matter, including briefs amicus curiae on a
legal question involved in requests numbered
BHC-8 and BHC-12, submitted through the Applicant by three bank holding companies not
parties to this matter; and all such steps having
been in accordance with the Board's Rules of
Practice for Formal Hearings (12 CFR 263):
IT IS HEREBY ORDERED, for the reasons set

out

in the Board's Statement of this date, that the
requests of General Contract Corporation under
Section 4(c)(6) of the Bank Holding Company




Act of 1956 for determinations exempting its
shares in the above-named subsidiaries from application of the prohibitions of Section 4(a)(2) of
the said Act shall be, and hereby are, denied.
This 10th day of February 1958.
By order of the Board of Governors.
Voting for this action: Chairman Martin, Vice Chairman Balderston, and Governors Szymczak, Robertson,
and Shepardson; voting against this action: Governor
Mills; absent and not voting: Governor Vardaman.
(Signed) S. R. CARPENTER,
Secretary.
(SEAL)

STATEMENT
Background of the Case
On December 14, 1956, General Contract Corporation of St. Louis, Missouri, a bank holding
company sometimes called herein "Applicant" or
"GCC", filed with the Board of Governors requests for determinations that twenty-four of its
nonbanking subsidiaries (one of which itself has
nine subsidiaries) are of such a nature as to be
exempt under Section 4(c) (6) of the Bank Holding Company Act of 1956 from the divestment
requirements of that Act.1 As required by the
statute, a formal hearing was held on 23 of these
requests, one of the requests having been withdrawn during the course of the hearing after the
Board had expressed the opinion that the subsidiary involved was exempt under other provisions of the Act.
The Hearing Examiner's
Report and Recommended Decision was filed
with the Board September 12, 1957.
The subsidiaries involved consist of an investment company, ten loan companies, three insurance companies, and nine insurance agencies.
The attached copy of the Hearing Examiner's
Report and Recommended Decision describes the
activities of GCC as well as of these subsidiaries.
The Hearing Examiner recommended that all
1

T h e particular sections of the Act here applicable are:
Sec. 4(a) Except as otherwise provided in this Act, no bank
holding company shall . . .
(2) after two years from the date of enactment of this Act
. . . retain direct or indirect ownership or control of any voting shares of any company which is not a bank or a bank
holding company . . . .
(c) The prohibitions of this section shall not apply . . . .
(6) to shares of any company all the activities of which
are of a financial, fiduciary, or insurance nature and which
the Board after due notice and hearing, and on the basis of
the record made at such hearing, by order has determined to
be so closely related to the business of banking or of managing
or controlling banks as to be a proper incident thereto and as
to make it unnecessary for the prohibitions of this section to
apply in order to carry out the purposes of this Act . . . .

262

FEDERAL RESERVE BULLETIN • MARCH 1958

23 requests be denied. He concluded that, following the principles enunciated in the Board's
opinion in the Transamerica-Occidental case
(Docket No. BHC-28), the request as to the investment company should be denied because,
while its activities are similar in kind to some of
the activities of banks, it has no direct functional
or operational connection with the bank holding
company's subsidiary banks. The Examiner further concluded that the three insurance companies
and nine insurance agencies, while also engaged
in activities somewhat similar to banking, could
not be considered to be a "proper incident" to
the banking business carried on by the subsidiary
banks. The Examiner found that five of the ten
loan companies were not directly integrated with
the functions of the subsidiary banks, and that
three of them were only partially related to the
business of the banks.
As to the remaining two loan companies, the
Examiner concluded that, although functionally
integrated and operated much as though they
were departments of the banks, they could not be
regarded as a "proper incident" to the business of
the banks or consistent with "the purposes of this
Act" because the very types of transactions that
make the companies "closely related" to the banks
are unlawful under Section 6 of the Bank Holding Company Act. These transactions are the
sale by the loan companies to the subsidiary banks,
at a discount and without recourse, of notes representing personal loans made by the loan companies.
GCC did not file exceptions or brief as to 21 of
the 23 companies involved, and under Rule VII
of the Board's Rules of Practice for Formal Hearings (12 CFR 263.7) GCC is deemed to have
abandoned any objections to the Examiner's recommended decision as to those 21 companies
(Docket No. BHC 4-7, BHC 9-11, BHC 13-17,
BHC 19-27). Therefore, without passing upon
the correctness or incorrectness of the Examiner's
recommended decision regarding those companies, Applicant's requests as to those companies
are denied.
GCC's exceptions and brief, dated October 14,
1957, and filed with the Board October 15, 1957,
related only to the Hearing Examiner's recommended decision with respect to the two loan
companies mentioned above, namely, Industrial
Loan Company (Docket No. BHC-8) and Baden




Loan Company (Docket No. BHC-12). Accordingly, further discussion will deal only with
those two companies.
The Discount Question
As indicated before, the Examiner concluded
that exemption should be denied the two loan
companies in question because the transactions by
which a subsidiary bank purchases personal loan
paper from the loan company at a discount and
without recourse involve violations of Section
6(a)(4) of the Act, which makes it unlawful for
a subsidiary bank to make any "loan, discount or
extension of credit" to its bank holding company
or to any fellow subsidiary. The exceptions and
brief of GCC disagree with this interpreation of
Section 6(a) (4), as do also amicus curiae briefs
filed with the Board by three other bank holding
companies: First Bank Stock Corporation, Marine
Midland Corporation and Northwest Bancorporation. The arguments in the different briefs are
largely similar and for convenience all will usually
be referred to as those of Applicant.
The facts as to the operations of the two loan
companies are fully set forth in the Examiner's
Report and are not challenged by Applicant. The
key fact for present purposes is that Bank of St.
Louis, a GCC subsidiary, purchases personal loan
paper at a discount, and without recourse, from
Industrial Loan Company (and that Baden Bank,
St. Louis, another GCC subsidiary, makes such
purchases from Baden Loan Company). In each
case, the loan company is operated in effect as
though it were the personal loan department of
the bank; it sells substantially all its loans to the
bank on the days when made, services such loans,
and serves as the bank's chief source of such
paper. All functions of the loan company are
performed on the premises of the bank and by
bank personnel. The loan company has no separate place of business or paid personnel of its
own.
The question turns upon whether the word
"discount", as used in Section 6(a)(4), includes
a purchase of paper at a discount but without
recourse against the seller. It is conceded by all
that the term "discount" may have several meanings. Thus it is sometimes used in a restricted
sense as applying only to a loan transaction in
which the borrower receives a sum of money less
than the stated amount of the note given by him.

LAW DEPARTMENT

263

The Danforth case and some others cited by the
Examiner relate to the usury provision of the National Bank Act (U. S. Rev. Stats., Sec. 5197; 12
U.S.C., Sec. 85). As the Examiner indicates,
however, the cases holding the word "discount" to
include a nonrecourse purchase of paper are not
confined to those construing that provision. The
case of Morris v. Third National Bank of Springfield, supra, held that the corporate authority for
Judicial interpretations. In seeking the meaning
national banks to purchase paper derives from
that Congress intended for the word "discount" in
their authority to engage in the "discounting" of
Section 6(a)(4) it seems appropriate to see what
paper.
the courts, particularly the Federal courts, have
The provisions construed in these Federal cases
said about the meaning of the word. On this
are, of course, not identical in language or purpoint the Examiner stated in his Report (p. 283):
pose with Section 6(a) of the Bank Holding Com"Ample judicial authority supports the conclusion—
pany Act; but they have in common the fact that
in the words of the Third Circuit Court of Appeals—
they are all Federal statutes that deal with bankthat, 'in the business of banking, "discount" in the
ordinary acceptance of the term, includes what is
ing operations and practices. Moreover, these
24
called "purchase" \ Moreover, the Federal Courts
cases do not turn upon any unusual use of the
have interpreted other sections of the national bankword "discount" in the statutes being construed;
ing laws where the term 'discount' is used as including
within its scope, not only loans or advances by way
on the contrary, as indicated in the Danforth case,
of discount of commercial paper, but also the out48 Fed. Rep. 271, 274, they constitute judicial
right purchase by banks of such paper for an amount
findings as to "the ordinary acceptance of the
less than their face value. Thus it has been held that
the authority of national banks to acquire title to
term" and "its usual commercial sense"—findings
commercial paper—authority that must stem from an
which are highly relevant to the present question.
express25grant of power or impliedly be deemed prohibited —is derived from the statutory corporate
In view of these cases holding that the word
power given national banking associations under U.S.
"discount" in "its usual commercial sense" and in
Rev. Stats., Sec. 5136, 12 U.S.C., Sec. 24, to engage
its "ordinary acceptance" includes nonrecourse
in the 'discounting' of 'promissory notes, drafts, bills
of exchange and other evidences of indebtedness.'26
purchases of paper, it would seem that the word
Thus, too, the term 'discount' as used in U.S. Rev.
should be similarly interpreted in Section 6(a) (4)
Stats., Sec. 5197, 12 U.S.C., Sec. 85, which prohibits
usury by national banking associations on loans or disunless some persuasive reason to the contrary can
counts made by them, has been held to include within
be shown. Applicant attempts to make such a
its scope, not only transactions involving bank loans
contrary showing, relying largely on arguments
to the person for whom paper is discounted, but also
transactions involving bank purchases of third party
based upon the context in which the word "dispaper—and this regardless of whether such paper is
count" appears.
purchased27with or without any right of recourse upon
the seller.
Context in which word "discount" appears. Since
24
Applicant's arguments relate chiefly to the context
" Danforth v. National State Bank of Elizabeth,
48 Fed. Rep. 271, 274. See also Fleckner v. Bank, 8 in which the word "discount" appears in Section 6
Wheat. (U.S.) 338; Morris v. Third National Bank of of the Bank Holding Company Act, all of that
Springfield, 142 Fed. Rep. 25, 31 (C.A. 8 ) : cert. den.
201 U.S. 649, Saltmarch v. Planters & Merchants section is quoted below for convenient reference.
Bank, 14 Ala. 677; Neillsville Bank v. Tuthill, 4 Dak. "BORROWING BY BANK HOLDING COMPANY OR ITS
295, 30 N.W. 154, 156; Pape v. Bank, 20 Kan. 440,
446; 27 Am. Rep. 183; Salmon Falls Bank v. Leyser, SUBSIDIARIES
116 Mo. 51, 71, 22 S. W. 504, 509; Tracy v. Tal"Sec. 6. (a) From and after the date of enactment
madge, 18 Barb. (N.Y.) 456; Bank v. Savry, 82 N.Y.
of this Act, it shall be unlawful for a bank— . . .
291, 302.
"(1) to invest any of its funds in the capital
*<25 First National Bank v. National Exchange Bank, bonds, debentures, or other obligations of a stock,
bank
92 U.S. 122.
holding company of which it is a subsidiary, or of
26
" Morris v. Springfield National Bank, supra. See any other subsidiary of such bank holding comalso Danforth v. National State Bank, supra, p. 274.
pany;
"(2) to accept the capital stock, bonds, deben"27 Danforth v. National State Bank, supra. Cf.
tures, or other obligations of a bank holding comNational Bank of Gloversville v. Johnson, 104 U.S.
pany of which it is a subsidiary or any other sub271; Daniel v. First National Bank of Birmingham,
sidiary of such bank holding company, as collateral
227 Fed. Rep. (2d) 353, 355 (C.A. 5)."

However, it is also used in a broader sense as including a purchase of paper with recourse against
the seller; and, in a still broader sense, as including a purchase of paper even though without recourse against the seller. The problem here is to
determine which of these meanings should be applied in the present situation, in the light of the
language and purposes of the law.




264

FEDERAL RESERVE BULLETIN • MARCH 1958

security for advances made to any person or company: Provided, however, That any bank may accept such capital stock, bonds, debentures, or other
obligations as security for debts previously contracted, but such collateral shall not be held for a
period of over two years;
"(3) to purchase securities, other assets or obligations under repurchase agreement from a bank holding company of which it is a subsidiary or any
other subsidiary of such bank holding company; and
"(4) to make any loan, discount or extension of
credit to a bank holding company of which it is
a subsidiary or to any other subsidiary of such
bank holding company.
"Non-interest-bearing deposits to the credit of a
bank shall not be deemed to be a loan or advance to
the bank of deposit, nor shall the giving of immediate
credit to a bank upon uncollected items received in
the ordinary course of business be deemed to be a
loan or advance to the depositing bank.
"(b) The provisions of this section shall not apply
(1) to the capital stock, bonds, debentures, or other
obligations of any company described in Section
4 ( c ) ( l ) of this Act, or (2) to any company whose
subsidiary status has arisen out of a bona fide debt
to the bank contracted prior to the date of the creation
of such status, or (3) to any company whose subsidiary status exists by reason of the ownership or
control of voting shares thereof by the bank as
executor, administrator, trustee, receiver, agent, or
depositary, or in any other fiduciary capacity, except
where such shares are held for the benefit of all or a
majority of the stockholders of such bank."
The Examiner summarized Applicant's arguments as follows (pp. 283, 284) :
"The Applicant argues earnestly, however, that
notwithstanding the broad commercial usage of the
term 'discount', Congress in drafting Section 6(a) (4)
intended to draw a distinction between, on the one
hand, a discount involving a direct loan to an affiliated
company, or an advance to such affiliate on discounted third party paper for the payment of which
the affiliate assumes liability as an endorser or
guarantor, and, on the other hand, a transaction involving a bank's purchase of third party paper at a
discount from an affiliate without any right of recourse upon the affiliate. The Applicant concedes
that Congress intended the prohibitions of Section
6(a) (4) to apply to transactions of the first two types,
but not, it contends, to those of the third type.
"The arguments upon which the Applicant would
support that position are ably marshalled in its brief.
The main points stressed are, in broad outline, as follows: (1) It is urged that Section 6(a) (4) may not be
read in isolation, but must be read in context with
the other subdivisions of Section 6(a). It is claimed
that 6 ( a ) ( l ) , prohibiting investments in capital
stock, bonds, debentures or other obligation of an
affiliated company; 6(a)(2), prohibiting the acceptance of such capital stock, bonds, debentures or
other obligations as collateral for advances made to
any borrower; and 6(a)(3), prohibiting the purchase
of securities, other assets or obligations from an
affiliate under a repurchase agreement—all disclose
a Congressional concern over a bank relying on the
worth or credit of its parent or fellow subsidiaries
in its investment or lending activities. According to




the Applicant, consistency and harmony with the
pattern shaped by the earlier subdivisions demand
that Section 6(a) (4) also be construed as applying
only to situations where a transaction calls for bank
reliance on the credit or worth of an affiliate. And
such reliance, it says, is not involved in the case of
an outright purchase of paper where there is no
residue of liability on the part of the transferor. (2)
It is claimed that Section 6(a) (3) allows by implication the purchase from an affiliate 'of securities, other
assets or obligations' where there is no repurchase
agreement, and it is asserted that the terms 'securities'
and 'obligations' as therein used are broad enough to
cover the purchase of consumer credit paper, thereby
in effect limiting the breadth of 'discount' as used in
Section 6(a)(4). (3) It is urged that the coupling
in Section 6(a) (4) of the word 'discount' with the
words 'loans' and 'extensions of credit' denotes an
intention to have them all understood in the same
general sense, as covering only such transactions as
involve the lending or advance of money to an affiliate for which the affiliate assumes responsibility for
repayment."
The Examiner concluded that these arguments
of Applicant were not sufficient to overcome the
weight of the cases already mentioned (and the
legislative history which will be discussed later).
He stated (pp. 284, 2 8 5 ) :
" . . . I am not persuaded that to interpret 'discount' in Section 6(a)(4) as including a purchase of
commercial paper by way of discount would inject
a discordant note in the provisions of Section
6(a)(3) read as a whole. It seems to me too narrow
a view to say that Section 6(a) was only designed to
prevent a bank from relying on the worth or credit
of an affiliated company in the conduct of its banking activities. I think the broader aim of Section
6(a), as revealed by all its subdivisions, was to remove the danger that a bank holding company might
misuse the resources of a bank it controls to gain an
advantage for itself or other subsidiaries it also controls. This a holding company might otherwise do by
causing a controlled bank to provide equity or working capital, directly or indirectly, to the holding company or another subsidiary, or by otherwise financing
the business operations of such an affiliate. To interpret 'discount' as used in Section 6(a) (4) in the
full sense of that term as established by commercial
usage is entirely consistent with that aim. For, obviously, a bank's resources might be used to finance
the operations of a parent or other affiliated company just as much through purchase of commercial
paper without recourse, as through purchase with recourse, or by means of a loan against the pledge of
such paper.32
"32 This is aptly illustrated in the case of Industrial
Finance Co. of Wellston. Before passage of the Act,
that company obtained working capital for its dealer
finance activities by borrowing against such paper
from Bank of St. Louis. After such borrowing was
outlawed by the Act, the company continued to obtain its working capital from Bank of St. Louis,
except that now it sold the paper instead of borrowing
against it. The procedure was changed, but the net
result remained the same, except for diminution in
the protection to the bank."

LAW DEPARTMENT
"Further, I am not persuaded that a broad construction of 'discount' in Section 6(a) (4) would
create perforce an inconsistency with Section 6(a)(3).
Section 6(a)(3) was evidently designed to cover a
transaction which is in reality a loan transaction, but
which takes the form of a purchase and repurchase
agreement. By its terms it spells out a prohibition
against a specific type of transaction, and goes no
further. It confers no affirmative right with which
the 'discount' prohibition, no matter how broadly construed, may be found inconsistent. And even if
Section 6(a)(3) may read as reserving by implication whatever rights a holding company bank might
otherwise have under the law to make purchases
without repurchase agreements, this does not preclude
the 'discount' provision of Section 6(a) (4) from
being construed as imposing a limitation or restriction on such rights. Indeed, such a construction is
not only permissible, it is entirely reasonable. It
would both give full meaning to 'discount' in its
accepted usage and at the same time comport with
the ends that Congress sought to achieve, as revealed
by the legislative history. . . . Nor would it otherwise
negate the implication said to be contained in Section
6(a)(3). This is so because bank discounts, as
commonly understood, apply to financial transactions
involving notes, bills of exchange and the like, and not
to a bank's acquisition through purchase of other
assets, securities or obligations, such as, for example,
corporate stocks, bonds or debentures.
"The Applicant's argument, that the coupling of the
word 'discount' with the words 'loan' and 'extension of
credit' denotes an intent to have 'discount' apply only
to transactions that involve loans made by a bank to
an affiliate, is even less persuasive. The words 'loan'
and 'extension of credit' do not have synonymous
meanings, . . . and it seems unlikely that Congress
would have inserted the word 'discount', which, in
ordinary usage has a broader meaning than 'loan',
had it merely intended that word to cover the same
ground and no more. . . ."
In challenging these views and conclusions of
the Examiner, Applicant earnestly and ably reemphasizes the arguments previously made before
the Examiner and also stresses the fact that Federal banking laws sometimes draw a distinction
between recourse and nonrecourse purchases of
paper. For example, U. S. Rev. Stats., Sec. 5200,
12 U.S.C., Sec. 84, which limits the total loans
that a national bank may make to one borrower,
does not count paper purchased without recourse
as part of loans made to the seller. Applicant
argues that the absence of a claim against the
seller of the paper tends to cause the purchaser
to be more cautious in considering the merits of
the paper, and thus provides an additional safeguard. Applicant argues that this not only explains the exemption of nonrecourse purchases
from U. S. Rev. Stats., Sec. 5200, but also indicates a Congressional intent to exempt them from
Section 6.




265
However, for the reasons outlined below, the
Board is forced to the conclusion that the Examiner's analysis is sound and well reasoned, and
that Applicant's arguments fail to give due
weight to certain facts that are evident from the
record and basic to operations of banks and bank
holding companies.
It is of fundamental importance that Section 6
deals with a situation in which there is a lack of
the usual arm's-length dealing between a bank and
its customer. It is the nature of a holding company system, and of the problems at which the
Bank Holding Company Act was directed, that
the various units of the group are ordinarily under
common control or susceptible to such control.
While such control sometimes may not be exercised or may not even exist, it is abundantly clear
that Sections 4 and 6 of the Act are based upon
an assumption that it usually is, or can be, exercised. It clearly exists in the present case.
It is also important that, as a practical matter,
a bank can be used to finance an affiliate as effectively through discounting (purchasing) paper,
either with or without recourse, as through making
ordinary loans. In fact, as will be seen later, it is
actually easier to use—or misuse—the resources
of a bank through nonrecourse discounts than
through ordinary loans.
In view of these facts, it is difficult to see how
it can be of any significance that transactions described in clauses (1), (2) and (3) of Section
6(a), or a "loan" or "extension of credit" described in clause (4), would involve a claim
against the credit or worth of the affiliate while
a nonrecourse purchase of paper from the affiliate
would not. If there is arm's-length dealing, the
absence of a claim against the seller of the paper
may have the effect, as Applicant contends, of
causing the purchaser to be more cautious in considering the merits of the paper itself, and may
thus provide a basis for exempting nonrecourse
paper from some limitations that apply to recourse paper, as for example, the National Bank
Act limitations, U. S. Rev. Stats., Sec. 5200 on
loans to one borrower. However, a fundamental
purpose of Section 6(a) is to prevent abuses
where arm's-length dealing is lacking. Hence
arguments based on arm's-length situations would
not seem to be helpful in construing it. The Board
is convinced that all of Section 6(a) should be
viewed as relating to the financing of an affiliate,

266

FEDERAL RESERVE BULLETIN • MARCH 1958

with the existence or nonexistence of a claim
against the affiliate being essentially irrelevant;
and the Board cannot accept Applicant's arguments based on context.
It is also to be noted that Applicant's arguments based on context rely heavily on the doctrines of implied exclusion {expressio unius est
exclusio alterius) and meaning by association
(noscitur a sociis). These doctrines can be of
use in some circumstances in interpreting statutes
or other writings. However, it is well recognized
that they are subject to serious limitations, require
great caution in their application, and are not applied where, as here, they would lead to conclusions in conflict with the purposes of the statute.
See, for example, authorities gathered at 50
American Jurisprudence, pp. 240-41, 243-44; 82
Corpus Juris Secundum, pp. 668-70, 655-56.
The irrelevance of these doctrines to the present question is evident from the fact, as indicated
above, that if the doctrines were applied here
they would result in conclusions in conflict with
the realities of holding company operations.
Analysis of the reference to "purchase under repurchase agreement" in Section 6(a) (3) indicates
that the term usually refers to a specialized transaction which is generally regarded as a form of
loan; that the term probably was used in 6(a) (3)
out of an abundance of caution to be certain that
such transactions were covered; that the phrase is
a composite term for which there is no convenient
single word; that the word "purchase" in that
phrase has significance only as part of that composite term; and that it would be unrealistic to lift
the word out of the composite term and attempt
to read into it any further significance through the
doctrine of implied exclusion.
The Board is mindful of the facts, stressed by
Applicant, that violations of Section 6 are misdemeanors; that criminal statutes are to be strictly
construed in favor of the defendant; and that,
therefore, their language cannot be enlarged to
encompass prohibitions beyond its ordinary meaning. As indicated above, however, the usual
meaning of the word "discount" appears to include
nonrecourse purchases of paper. As the Supreme
Court of the United States said in United States v.
Brown, 333 U.S. 18, 25-26:
". . . The canon in favor of strict construction is not
an inexorable command to override common sense
and evident statutory purpose. It does not require




magnified emphasis upon a single ambiguous word in
order to give it a meaning contradictory to the fair
import of the whole remaining language. As was
said in United States v. Gaskin, 320 U.S. 527, 530,
the canon 'does not require distortion or nullification
of the evident meaning and purpose of the legislation.'
Nor does it demand that a statute be given the
'narrowest meaning'; it is satisfied if the words are
given their fair meaning in accord with the manifest
intent of the lawmakers."
Legislative history. It seems desirable to review
the legislative history of Section 6 and of the addition of the word "discount" in Section 6(a)(4).
It will be seen that this legislative history, like
the considerations already discussed, strongly indicates that the word "discount" in Section
6(a) (4) was intended by Congress to include
nonrecourse purchases of paper.
The Examiner was impressed, and we believe
properly so, by the fact that during the Committee
hearings leading to the enactment of the Bank
Holding Company Act, frequent reference was
made to the Bankers Discount Corp. situation as a
flagrant example of the danger of abuse flowing
from self-dealings between bank holding companies and their subsidiary banks. That situation
involved a Texas finance company that acquired
control of two Chicago banks and then, among
other things, caused the acquired banks to purchase from it at a discount and without recourse
notes of questionable value that it held, resulting
in a forced temporary closing of the Chicago
banks.
The word "discount" did not appear in the selfdealing provisions of the drafts of the Bank Holding Company Act that were introduced in Congress before the Bankers Discount situation
engaged the attention of Congress. Those earlier
bills (for example S. 1118, and H.R. 12, 83d
Cong.) merely referred to "loan or extension of
credit". After the Bankers Discount disclosures
the word "discount" was added, so that the phrase
read "loan, discount or extension of credit", as in
Section 6(a)(4) of the final Act. (H.R. 2674,
H.R. 6227, S. 880, S. 2577, 84th Cong.)
In reporting out the bill in 1955, the House
Banking and Currency Committee described the
Bankers Discount situation at length and stated
(H. Rep. 609, pp. 18-19, 84th Cong.) as a reason
for including the self-dealing provisions that:
" . . . to fail to prohibit self-dealing between bank
holding companies and their subsidiary banks would
be to invite a repetition of the [Bankers Discount]
situation. . . ."

LAW DEPARTMENT
The Report of the Senate Banking and Currency Committee did not specifically mention the
Bankers Discount situation. However, the Senate Committee appeared to share the House's
concern, as shown by the following passage from
its Report (S. Rep. 1095, p. 4, 84th Cong.):
" . . . fear has been expressed that, improperly
but within the present law, a bank holding company
may take undue advantage of one or more banks in
its system. This it might do by discounting commercial paper at the bank with resulting profit to the
bank holding company but at an unwarranted risk to
the bank or its shareholders. No widespread abuse
of this nature has been brought to the attention of
your committee, but the provision in the bill prohibiting upstream lending should adequately prevent the
possibility of any such abuse." (Emphasis supplied.)
This legislative history of Section 6(a) and of
the addition of the word "discount" shows, in
the words of the Committee Reports, that the section was intended to "prohibit self-dealing between
bank holding companies and their subsidiary
banks", that it reflected a fear that "a bank holding
company may take undue advantage of one or
more banks in its system", and that it was intended
to "prevent the possibility" that "by discounting
commercial paper at the bank" the holding company may cause "unwarranted risk to the bank".
In other words, the legislative history indicates that
in Section 6(a) Congress was interested only indirectly, if at all, in the question of whether or not
a transaction results in a bank's receiving a claim
against an affiliate, and that the direct and immediate Congressional purpose in enacting Section
6(a) was to forbid transactions in which there is a
substantial possibility of a bank's resources being
misused by an affiliate.
Applicant points out that the Bankers Discount
situation involved both direct loans to affiliates
and nonrecourse purchases of paper from them.
Applicant argues from this that the statements in
the Committee Reports related to the prohibitions
in Section 6 against direct loans. However, it is
clear that in the Bankers Discount situation nonrecourse purchases were by far the more important of the two abuses of the banks' resources.
The House Committee Report on the Bank Holding Company Act, in discussing the Bankers Discount situation, indicated {supra, p. 18) that the
finance company obtained from the two banks
$135,000 in the form of loans—"the amount of
the banks' legal lending limit", compared with
more than $3,000,000 obtained from them by




267
selling them consumer paper without recourse.
It is not surprising that such an overwhelming
proportion of the banks' financing of the parent
finance company in that situation took the form of
nonrecourse purchases of paper. As indicated
above, a national bank is subject to a general
limitation, with some exceptions, against lending
more than 10 per cent of the bank's capital and
surplus to one person. (U.S. Rev. Stats., Sec. 5200;
12 U.S.C., Sec. 84) Most State banks are subject to similar "legal lending limits", even though
the percentages vary. These limitations substantially curb the ability of an affiliate to abuse the
resources of a bank through direct loans—as indicated above, the House Committee Report stated
that $135,000 was the banks' "legal lending limit".
However, since a nonrecourse sale of paper does
not involve a debt from the seller to the bank, the
statutes limiting the aggregate liability of one person to the bank are ineffective to prevent an affiliate from using—and misusing—a huge proportion
of a bank's resources through such nonrecourse
sales. (As previously indicated, if there is arm'slength dealing between bank and customer, the
absence of a claim against the seller may act as a
safeguard by forcing the bank to give greater
attention to the safety of the paper itself; but in
a holding company situation, lack of arm's-length
dealing removes that safeguard.)
In the circumstances, it is clear that nonrecourse
purchases were far more important than direct
loans as a source of abuse in the Bankers Discount
situation. It is reasonable to believe that Congress, in following up its expressed concern over
the kinds of abuses possible in such situations,
would most likely have been at least as much
interested in preventing the major abuse as in
preventing the relatively less serious ones.
In this connection it is to be noted that the
provisions in the House and Senate bills relating
to the present question were substantially identical.
As a practical matter, recourse and nonrecourse
purchases of paper, which the Board concludes to
be covered in Section 6(a) (4), and purchase of
various assets under repurchase agreement, which
are covered by Section 6(a)(3), are virtually the
only forms of purchases in which there would be
substantial opportunity for an affiliate to abuse
the assets of a bank. Banks can and do make
other purchases, but they are relatively infrequent
(such as bank premises), or relatively small in

268

FEDERAL RESERVE BULLETIN • MARCH 1958

amount (such as office supplies), or already subject to substantial safeguards against abuse (such
as investment securities).
It seems significant that in actual practice, if
nonrecourse purchases of paper are included in
Section 6(a) (4), then all major methods by which
a holding company can misuse a subsidiary bank's
resources are covered, and the expressed Congressional purpose to prevent such misuse would be
substantially accomplished. On the other hand,
an interpretation which would exclude nonrecourse purchases would leave open a large and
important area of possible abuse, and would mean
that in practical effect Congress had failed to carry
out its stated purpose.
Applicant points out that the Chairman of the
Federal Deposit Insurance Corporation stated before the Subcommittee of the Senate Banking and
Currency Committee (Hearings before Subcommittee of the Senate Committee on Banking and
Currency on S. 880, S. 2350, and H.R. 6227, p.
100, 84th Cong. 1st Sess.) that:
" . . . there is no restriction in either of the bills
against the purchase or sale of assets among the units
of a holding company. . . . "
However, there is nothing to indicate that the
Committee agreed with his view, and it appears,
as explained above, that the Committee disagreed.
He urged that restrictions on purchases by banks
from their managements should apply to all banks
and not merely those in holding company groups,
and also that they should apply to downstream as
well as upstream dealing. After his testimony, the
Senate Banking and Currency Committee, in reporting out the bill, not only made the statement
quoted above on p. 267 that ". . . the provision in the bill prohibiting upstream lending
should adequately prevent the possibility of any
such abuse [of a bank by its holding company],"
but also continued with the statement that:
"This provision, in part at least, is in accordance
with the recommendations of Mr. H. Earl Cook,
Chairman of the Federal Deposit Insurance Corporation who testified against permitting either upstream
or downstream dealing."
Possible interference with usual banking operations.
Applicant, and particularly the holding companies
who filed amicus curiae briefs, stress the fact that
if Section 6(a)(4) is construed as applying to
nonrecourse purchases of paper it will interfere
with a large volume of transactions between banks
in the same holding company system.




It certainly can be argued that such a prohibition, particularly as between banks, is unnecessary
or undesirable as a matter of policy. When the
Bank Holding Company Act was being considered
by Congress, the Board of Governors of the Federal Reserve System recommended that all of the
provision that became Section 6 be omitted from
the bill as "unnecessarily restrictive". (Hearings
before Subcommittee of the Senate Committee on
Banking and Currency on S. 880, S. 2350, and
H.R. 6227, p. 79, 84th Cong. 1st Sess.) The
Comptroller of the Currency expressed similar
objections to the section. (Hearings, supra, p. 86)
On the other hand, the Chairman of the Federal
Deposit Insurance Corporation endorsed the "purpose of the provisions" (Hearings, supra, p. 100),
stating that "we would urge that the provisions
concerning restrictions on self-dealing be extended
either in this or in other legislation to banks
whether independently owned or part of a holding
company."
Such considerations of policy relate more to
the advisability or inadvisability of legislation than
to its interpretation. Having weighed these considerations, Congress included Section 6 in the
Act; and even under the narrow interpretation of
"discount" urged by Applicant, the section clearly
imposes substantial prohibitions on the movement
of funds within bank holding company groups.
These prohibitions in Section 6 are considerably
more stringent than the limitations in Section 23A
of the Federal Reserve Act on dealings between
member banks of the Federal Reserve System and
their affiliates. (12 U.S.C., Sec. 371c)
For example, Section 6 exempts noninterestbearing deposits but expressly prohibits all direct
loans between banks in the same holding company
group, even though such loans are frequently
made between banks. Such being the case, it
would not seem reasonable to assume that Congress was unwilling to prevent other transactions
which, as indicated before, are even more susceptible to the kinds of abuses that Congress, for
reasons that it deemed sufficient, was seeking to
prevent.
Applicant has directed the Board's attention to
the statement in the House Committee Report (H.
Rep. 609, p. 25, 84th Cong.) that:
"Routine banking transactions between subsidiary
banks are not treated as extensions of credit and do
not fall within the prohibitions of this section."

LAW DEPARTMENT
However, this statement cannot affect the present
question, since it plainly refers only to the specific
exemption in the last paragraph of Section 6(a)
(quoted above on p. 264) and could not be extended beyond that exemption without a direct
conflict with several portions of Section 6. In fact,
the limited exemptions contained in this last paragraph of Section 6(a) and in Section 6(b) tend
to emphasize the fact that other transactions are
not exempt if they fall within the usual meaning
of the other provisions of Section 6(a).
It may be noted, however, that when one bank
seeks participation by another bank to aid in
meeting the credit needs of a borrower, there
would seem to be no conflict with Section 6 if the
second bank joined at the outset in making its
portion of the loan, since this would not involve
the second bank in either a direct loan to the first
bank or a purchase of paper from it. This would
seem to permit at least a partial solution of the
problems involved in participations.
Certain other considerations. Applicant offered
certain other arguments that have not been discussed above. They were carefully considered,
and although they do not alter the Board's conclusion in this matter some of them are outlined
below, together with certain related considerations.
Applicant argues that the term "discount" could
not include purchases unless they are "at a discount"; that this means it could not include purchases unless they are for less than the principal
amount of the paper; that by simply making notes
interest-bearing in form instead of noninterestbearing (for example, a promise to pay $100 plus
6 per cent interest at the end of a year, instead of
a promise to pay $ 106 at the end of a year), transactions could readily be arranged so that purchases
would not be "at a discount"; that this would easily
permit nonrecourse purchases to evade Section 6
even if the term "discount" were held to include
nonrecourse purchases; and that, therefore, the
term should not be construed to include nonrecourse purchases.
The transactions in the present case are clearly
"at a discount" and the Examiner's Report naturally noted the fact. However, Applicant's argument based on this fact, and on the Examiner's
references to it, contains several defects. Without
attempting to discuss all of them, it may be noted
that Applicant's major premise—namely, that the
term "discount" is limited to purchases of paper




269
at an amount less than the principal amount of the
paper—appears to be untenable. As indicated
above on p. 263, the judicial interpretations
of the word "discount" show that the term is used
very broadly. In practice the term "bank discount" is applied broadly to transactions by which
a bank computes interest in advance so that there
is the possibility of compound interest, and it
seems that any purchase of paper is a "discount"
in that sense since it permits such advance computation and compounding. Prentice-Hall Encyclopedic Dictionary of Business (1952) defines
"Bank discount" (p. 79) as:
"The interest charge made by a bank for converting
commercial paper into cash before maturity. Bank
discount is computed as simple INTEREST on the
amount due at maturity on a note or draft and is
deducted in advance. . . . "
After giving this definition, the article explains
how bank discount is computed on noninterestbearing paper and also how it is computed on
interest-bearing paper, indicating that bank discount can apply to both.
It is to be understood, of course, that the purchases referred to here are purchases of paper—
promissory notes, bills of exchange and the like.
As the Examiner indicated (p. 285) bank discounts as commonly understood do not apply "to
a bank's acquisition through purchase of other
assets, securities or obligations, such as, for example, corporate stocks, bonds or debentures."
Another argument made by Applicant is to the
effect that Federal legislation since about 1900
has not used the term "discount" to include the
nonrecourse purchase of negotiable paper and
that this indicates the word was not intended to
include such purchases in Section 6. However,
the contention does not appear to be sound. Even
if the examples cited by Applicant were so extensive as to preclude the possibility of any different
usage in Congressional legislation since 1900,
which they do not appear to be, there is the further
fact that the legislation Applicant quotes merely
uses the word "purchase" or "sell" in addition to
the word "discount" in some connections, and this
was true even in the legislation considered in the
Danforth case and other cases discussed above on
p. 263.
Conclusions
For the reasons discussed above, the Board
concludes as follows:

270

FEDERAL RESERVE BULLETIN • MARCH 1958

(1) The Hearing Examiner having recommended denial of Applicant's requests numbered
BHC 4-17 and BHC 19-27, and Applicant having
filed exceptions and brief only to the recommended denial of requests numbered BHC-8 and
BHC-12. Applicant is deemed to have waived
objections, if any, to the Hearing Examiner's recommended denial of the remaining 21 requests.
(2) The transactions by which Bank of St.
Louis purchases paper from Industrial Loan Company (BHC-8), and by which Baden Bank, St.
Louis, makes such purchases from Baden Loan
Company (BHC-12), violate the prohibition in
Section 6(a)(4) of the Bank Holding Company
Act against a bank's making any "loan, discount
or extension of credit" to its parent or fellow subsidiary. In view of this conflict with Section
6(a)(4), these loan companies cannot be considered to qualify for exemption under Section
4(c)(6). This being dispositive of the question,
the Board does not pass upon whether or not
these companies could otherwise qualify for such
exemption.
(3) The requests of General Contract Corporation numbered BHC 4-17 and BHC 19-27 for
exemption under Section 4(c)(6) from the prohibitions of Section 4(a) (2) of the Bank Holding
Company Act should be denied, and IT IS SO
ORDERED.

Dissenting Statement of Governor Mills

Under Section 4(c)(6) of the Bank Holding
Company Act and Section 5(b) of Federal Reserve Regulation Y, the Board of Governors may
not make the determination requested by Applicant unless each company involved is "a proper
incident" to the banking activities of the GCC
holding company system. I agree, of course, that
if the relationship of these companies to GCC's
banking activities consists of transactions that are
prohibited by the Holding Company Act, such
companies cannot be "proper incidents" to the
system. Accordingly, the crucial question is
whether the transactions described in the majority
Statement—purchases of personal loan paper by
GCC banks from affiliated loan companies at a
discount, without recourse against the seller—are
within the coverage of Section 6(a)(4) of the Act,
which forbids a holding company
"to make any loan, discount or extension of credit to
a bank holding company of which it is a subsidiary or




to any other subsidiary of such bank holding company."
I am compelled to dissent from the Board's decision on applications BHC-8 and BHC-12 for
the reason that, in my view, the term "discount",
as used in Section 6(a)(4) of the Bank Holding
Company Act, relates to transactions in which
the seller of obligations (notes, conditional sale
contracts, and the like) assumes liability thereon
—as ordinarily stated, "sells with recourse"—and
does not cover transactions that do not give the
purchaser of paper any such rights against the
seller.
The majority Statement. The majority Statement

relies principally on certain judicial decisions that
have interpreted "discount" in other connections,
on the so-called "legislative history" of the Bank
Holding Company Act, and on arguments that
the interpretation they adopt will more effectively
guard against the dangers of "self-dealing" within
a bank holding company system.
If Section 6 itself were neutral on this question,
I agree that such considerations would be entitled
to considerable weight. However, it is my understanding that the meaning of a statutory provision
is to be drawn, if possible, from the language of
the provision itself. If the statute, on its face,
clearly supports one meaning and refutes its
opposite, the latter may not properly be adopted
simply because, in the opinion of an administrative agency, it might have been wise for the legislature to have so provided and because the
legislative committee heard testimony that might
have supported such a provision.
However, even if the factors relied upon by the
majority were entitled to primary weight, I question whether those factors, as they apply to this
case, strongly support their decision. I am not
satisfied that the judicial interpretations of "discount" in other connections, referred to in the
majority Statement, are particularly persuasive in
this matter. In the first place, it is my understanding that "discount" has been interpreted more
often than not as referring to purchase with recourse against the seller and excluding purchase
without recourse. Furthermore, interpretations
of a word in quite different contexts—in statutes
dealing with different problems and aimed at different objectives—are entitled to relatively little
weight.
Likewise, I am not satisfied that the history of

LAW DEPARTMENT
the Act discloses a clear legislative intention to
include purchases without recourse in the purview
of Section 6(a)(4). That problem, admittedly,
was present in the Bankers Discount case, which
was mentioned at a Committee hearing in 1953,
but there is no affirmative evidence that any committee, or Congress itself, acted to prohibit purchases without recourse. On the contrary, as the
majority Statement indicates, the Senate Banking
Committee was specifically informed by H. Earl
Cook, Chairman of the Federal Deposit Insurance
Corporation, that the proposed law, with the word
"discount" therein, would not prohibit such transactions. *
Provisions and purposes of Section 6(a). But even

if I were satisfied, which I am not, (1) that "discount" is usually interpreted to include purchases
without recourse, (2) that the legislative history
reveals a committee intent to cover such transactions, and (3) that such coverage would be
advisable as a matter of policy, I should still feel
compelled to interpret "discount" in Section
6(a)(4) to exclude purchases without recourse,
in view of the Congressional intent that is disclosed by the terms of Section 6 itself.
The majority Statement meets this crucial issue
by adopting (p. 264) the following statement
from the Hearing Examiner's Report:
" . . . the broader aim of Section 6(a), as revealed by all its subdivisions, was to remove the
danger that a bank holding company might misuse
the resources of a bank it controls to gain an advantage for itself or other subsidiaries it also controls."
If it were true that "all . . . subdivisions" of Section 6(a) did reveal the alleged "broader aim",
I agree that the Board would be justified in interpreting "discount" to include the purchase of
paper on a nonrecourse basis. However, if the
provisions of Section 6(a) do not reveal such a
Congressional aim, the Board may not interpret
"discount" in that manner simply because it considers that this would have been a wise Congressional aim in enacting Section 6(a). For the
reasons hereinafter set forth, it appears to me that
Congress did not reveal the alleged broad aim in
Section 6(a), but on the contrary revealed affirmatively a narrower objective, regard for which re* It is significant that Mr. Cook, who pointed this out in
his prepared Statement to the Committee, was the sole witness
cited in this connection by both the Senate and House Committees. See H. Rep. 609, p. 18, 84th Cong.; S. Rep. 1095,
p. 4, 84th Cong.




271
quires that "discount" be interpreted to exclude the
purchase of paper on a nonrecourse basis.
Section 6(a)(3) forbids a holding company bank
" . . . to purchase securities, other assets or obligations under repurchase agreement from a bank holding company of which it is a subsidiary or any other
subsidiary of such bank holding company."
Obviously this provision has to do with situations
in which a holding company bank might purchase
real property, tangible personal property, bonds,
debentures, other securities, or other obligations
from other corporations in the holding company
system. In Section 6(a)(3) Congress has forbidden a holding company bank to make such
purchases from related corporations "under repurchase agreement" and by clear implication has
not forbidden such purchases where there is no
repurchase agreement—that is, where the bank
simply pays a certain amount for the asset, with
no further claim upon the seller. I understand
that the majority of the Board does not dispute
this.
But if Congress had intended, by Section 6(a),
"generally to remove the danger that a bank
holding company might misuse the resources of
a bank it controls to gain an advantage for itself
or other subsidiaries" (as the majority contend),
this "broader aim" could have been effectuated
very simply by a general prohibition against holding company banks' purchasing assets from other
corporations in the system. If a holding company
owned a building, or office machinery, or securities
lacking a ready market, presumably it could
"misuse the resources of a bank it controls" by
selling such assets to the bank at excessive prices.
However, despite this possible argument for a
more restrictive prohibition, Congress did not
generally forbid a holding company bank to purchase assets from its affiliates; it prohibited such
purchases only when they were made "under repurchase agreement".
It is particularly significant that this distinction
was drawn in Section 6(a) (3) not by an omission
that failed to cover the nonrecourse area, but by
the affirmative inclusion of specific words ("under
repurchase agreement"). If Congress had merely
failed to include words covering the area in question, it could now be argued plausibly that
there was a legislative oversight that should not
control the interpretation of cognate provision—
namely, Section 6(a) (4). But Congress did not

272

FEDERAL RESERVE BULLETIN • MARCH 1958

simply fail to deal with the nonrecourse area; it
enacted specific words—which otherwise would
have been entirely unnecessary—to make clear
that purchases in which the seller assumed no
continuing liability were not prohibited.
It appears to me that this unquestionable expression of Congressional intent in Section
6(a) (3) must control the interpretation of "discount" in Section 6(a) (4), unless we are prepared
to take the position that Congress explicitly
adopted one position in Section 6(a) (3) and then
in the next subparagraph tacitly adopted a conflicting and inconsistent position. In Section 6(a) (3),
Congress has deliberately drawn a distinction between recourse purchases and nonrecourse purchases—the former are prohibited; the latter are
not prohibited. It seems unreasonable, and contrary to the principle of statutory construction
that provisions of a law should be interpreted in a
harmonious manner, to interpret "discount" in
Section 6(a) (4) as prohibiting nonrecourse purchases of a certain type, when Congress took
pains to indicate in Section 6(a)(3), with definite
language directed at the point, that nonrecourse
purchases of a comparable type are not prohibited.
Wording of Section 6(a)(4). The briefs submitted
by the holding companies in this matter present
several additional reasons, some of considerable
force, for construing "discount" in Section
6(a)(4) to exclude purchases of paper on a nonrecourse basis. I shall not attempt to marshal
all of these arguments. However, I wish to mention particularly the circumstance that "discount"
was placed between "loan" and "extension of
credit". The majority statement disposes of this
point by the following sentence (on page 265):
"The words 'loan' and 'extension of credit' do not
have synonymous meanings, . . . and it seems unlikely that Congress would have inserted the word
'discount', which, in ordinary usage has a broader
meaning than 'loan', had it merely intended that
word to cover the same ground and no more. . . . "
It is my understanding that, in the interpretation of statutes, the meaning of an ambiguous
word may be clarified by the meaning of other
words with which it is associated in series; if the
word in question has several meanings, one of
which accords with the meanings of the associated
words, that meaning is preferred to an alterna-




tive meaning that markedly differs from the associated words. Applying this principle to the instant case, it is clear that "loan" and "extension of
credit" are words that import reliance upon the
credit of, and obtaining a contractual claim
against, the person to whom the loan or extension
of credit is made. The use of "discount" in this
context suggests that it was meant in a similar
sense.
The above-quoted sentence seems to say that a
broad interpretation of "discount" is called for
because otherwise that word would "cover the
same ground and no more" than does the adjacent
word "loan". But I have two difficulties with this
approach. In the first place, the Bank Holding
Company Act is not a statute in which Congress
carefully avoided the inclusion of any words that
might be unnecessary. Some redundancy appears
at various places in the Act; two examples may
suffice. In Section 2(a)(A) reference is made to
"ownership or control of shares in a fiduciary
capacity" and in Section 3(a) (A) the reference
is to "shares acquired by a bank . . . in good faith
in a fiduciary capacity"; but in Section 6(b)(3)
the wording is "ownership or control of voting
shares . . . by the bank as executor, administrator,
trustee, receiver, agent, or depositary, or in any
other fiduciary capacity". It is clear that Congress had in mind the same coverage in all three
provisions but in one—perhaps unnecessarily—it
enumerated the more important fiduciary activities.
Even more in point is the fact that in Section
6(a)(4)—the provision directly involved in this
matter—Congress referred to "any loan . . . or
extension of credit". The term "extension of
credit" is very broad and unquestionably covers
every "loan" in addition to extensions of credit by
other means. Therefore, since Section 6(a)(4)
is patently redundant in its inclusion of "loan"
(and the majority does not attempt to give that
word a special meaning to avoid the redundancy),
there is no justification for specially shaping the
interpretation of the next-following word ("discount") for the purpose of avoiding redundancy.
In addition, however, I do not concede that
interpreting "discount" to exclude purchases without recourse would give that word the same
meaning as "loan". The latter term usually means

LAW DEPARTMENT
a direct advance to the maker of a promissory note
(or other primary obligor). A transaction in
which a bank purchases outstanding instruments
from a finance company ordinarily would not be
described as a "loan", so that—even if redundancy had to be avoided at all cost in our interpretation of the Act—it cannot correctly be said
that "discount" adds nothing to "loan" unless the
former is construed to cover purchases on a nonrecourse basis.
The approach of the preceding paragraph suggests what is to me the most reasonable explanation of the insertion of "discount" in Section
6(a)(4). It is conceded by all that, before that
word was inserted, all provisions of Section 6(a)
were directed at advances by holding company
banks that involved reliance on the credit or
worth of an affiliated corporation. With the
Bankers Discount incident in mind, the draftsman
might well have inserted "discount", perhaps with
excessive caution, in order to guard against the
possibility that "loan" and "extension of credit"
might be interpreted to mean only advances to
a primary obligor and not to include situations in
which a holding company bank extended credit to
an affiliate by purchasing from it the paper of
third persons supported by its endorsement or
guarantee. In this connection, I think we should
hesitate to conclude that, by the mere insertion of
the word "discount" with no special comment
whatsoever, Congress intended to change the basic
theory of Section 6(a) from a provision aimed at
intra-holding-company-group borrowing (and similar transactions) to one which covered not only
that field but also the field of purchases involving
no reliance on the credit or worth of the affiliate
from which the purchase was made. Here we
encounter again the force of the argument that
Congress made very clear in Section 6(a) (3) that
it intended not to cover outright purchases where
the seller did not assume responsibility.
Role of supervisory authorities. As previously
mentioned, the wisdom of Congressional action is
not the concern of an agency in its administration and interpretation of Federal legislation.
However, the decision of the majority in this case
apparently rests in part on the idea that Congress
would have been acting in an unreasonable manner if it had not intended Section 6(a) of the




273
Holding Company Act to prohibit outright purchases (that is nonrecourse purchases).
In my opinion, Congress sensibly could have
decided that purchases in that category did not
call for outright prohibition. Such purchases are
a matter for close scrutiny under sound principles
of bank supervision and examination, and consequently Congress could have decided that the
dangers of misuse were not so great as to justify
an absolute prohibition of a widely used and recognized banking practice. I do not believe Congress contemplated that the Holding Company
Act would be interpreted as interfering with normal banking relationships and operations, except
to the extent clearly required by its provisions.
Elsewhere in the Act Congress exempted various matters from specific coverage because they
came within the scope of bank chartering, branch
authorization, supervision and examination, and
therefore did not need to be covered also by holding company legislation. For example, Section 3
forbids a bank holding company (1) to acquire
the assets of a bank outside of its own State, or
(2) to do so within its own State without the
approval of the Federal Reserve Board. A specific
exemption is provided, however, with respect to
such acquisitions by a bank subsidiary of a holding company, for the reason that such absorptions
generally are subject to control by the bank chartering and examining authorities, and Congress
considered it unnecessary to impose additional
prohibitions and requirements under the Holding
Company Act. Likewise, despite the fact that
Section 4 generally prohibits holding companies
from acquiring shares of nonbanking corporations,
Section 4(c)(3) permits such acquisitions from a
subsidiary that "has been requested to dispose of
such shares by any Federal or State authority
having statutory power to examine such subsidiary"; here again Congress recognized the
responsibility of bank supervisory authorities by
providing a specific exemption to enable them
more freely and effectively to exercise their authority with respect to the soundness of the commercial banking system.
In the same way, it appears to me entirely
proper to infer from Section 6(a) a legislative
intent to prohibit actual extensions of credit between the units of a bank holding company system, but to continue to leave to the judgment and

274

FEDERAL RESERVE BULLETIN • MARCH 1958

decision of the supervising and examining agencies
the matter of outright purchases of personal-loan
and other paper. When Congress dealt with the
same subject in the Banking Act of 1933, it left
this area of banking activity to the ordinary processes of bank supervision (see Section 23A of the
Federal Reserve Act), and there is no convincing
evidence that Congress did not adhere to that
philosophy in the Bank Holding Company Act
of 1956.
In his Report the Hearing Examiner indicated
(p. 285) that, except for his adverse conclusion
on the crucial "discount" question, he would
have found that the two loan companies involved
in applications BHC-8 and BHC-12 were (in the
words of Section 4(c)(6))
"so closely related to the business of banking or of
managing or controlling banks as to be a proper incident thereto and as to make it unnecessary for the
prohibitions of [Section 4] to apply in order to carry
out the purposes of" the Bank Holding Company Act.
I agree with the Hearing Examiner's views on this
point and I do not regard the "discount" provision
of Section 6(a)(4) as a bar. Consequently I
conclude that the Applicant is entitled to favorable determinations by this Board, pursuant to
Section 4(c)(6), with respect to the two enumerated applications.
REPORT AND RECOMMENDED DECISION
Statement of the Case
On December 14, 1956, General Contract Corporation, herein called the Applicant, and at times
GCC, filed with the Board of Governors of the
Federal Reserve System, herein called the Board, 24
separate requests, covering 33 subsidiary corporations, that the Board determine, pursuant to Section
4(c)(6) of the Bank Holding Company Act of 1956,
70 Stat. 133, herein called the Act, that the shares
held by the Applicant directly or indirectly in such
subsidiary corporations are exempt from the provisions of the Act prohibiting the retention by a bank
holding company 1 of any voting shares of a nonbanking company.
1

The particular sections of the Act here applicable are:
Sec. 4(a) Except as otherwise provided in this Act, no bank
holding company shall . . . .
(2) after two years from the date of enactment of this
Act . . . retain direct or indirect ownership or control of any
voting shares of any company which is not a bank or a bank
holding company . . . .
(c) The prohibitions of this section shall not apply—
(6) to shares of any company all the activities of which
are of a financial, fiduciary, or insurance nature and which
the Board after due notice and hearing, and on the basis of
the record made at such hearing, by order has determined to
be so closely related to the business of banking or of managing
or controlling banks as to be a proper incident thereto and as
to make it unnecessary for the prohibitions of this section to
apply in order to carry out the purposes of this Act; . . . .




The nonbanking subsidiaries involved in the respective exemption request and the docket number
assigned by the Board to each such request are set
out below:
Washington Fire and Marine Insurance
(BHC-4)
Company
(BHC-5)
Insurance Company of St. Louis
Midwestern Fire and Marine Insurance
(BHC-6)
Company
Securities Investment Company of St.
(BHC-7)
Louis and its subsidiaries:
Securities Credit Company (Mo.)
Securities Loan Company
Securities Credit Company (Fla.)
Broadway Insurance Agency, Inc.
Securities Insurance Agency, Inc.
Davidson Insurance Agency, Inc.
Investment Insurance Agency, Inc.
Craighead Insurance Agency, Inc.
Palafox Insurance Agency, Inc.
Industrial Loan Company
Industrial Finance Company of Wellston
Springfield Union Finance Company
Quincy Union Finance Company
Baden Loan Company
General Contract Loan Company
SIC Loan Company
General Loan Company
General Contract Loan Company, Inc.
General Contract Loan Brokers, Inc.
Apex Insurance Agency, Inc.
Jefferson-Gravois Insurance Agency, Inc.
Reid-Kruse, Inc.
St. Louis-Washington Insurance Agency
Inc.
Northwestern Insurance Agency, Inc.
Springfield Insurance Agency, Inc.
Quincy Insurance Agency, Inc.
Sterick Insurance Agency, Inc.
Texarkana Agency, Inc.

(BHC-8)
(BHC-9)
(BHC-10)
(BHC-11)
(BHC-12)
(BHC-13)
(BHC-14)
(BHC-15)
(BHC-16)
(BHC-17)
(BHC-19)
(BHC-20)
(BHC-21)
(BHC-22)
(BHC-23)
(BHC-24)
(BHC-25)
(BHC-26) 2
(BHC-27)

On January 22, 1957, the Board ordered that a
consolidated hearing be held on the aforesaid requests in accordance with the provisions of Section
4(c)(6) of the Act and Sections 5(b) and 7(a) of
the Board's Regulation Y [12 CFR 222.5(b), 222.7(a)]
promulgated under the Act. Notice of the Applicant's
requests for such determinations and of the order
directing a hearing thereon was published in the
Federal Register on January 26, 1957 [22 Federal
Register 528]. The notice as published provided,
inter alia, that any person desiring to give testimony
might file a request for that purpose with the Board.
Pursuant to the aforesaid order and notice, a hearing was held at St. Louis, Missouri, at various dates
between February 18 and May 1, 1957, before the
undersigned, Arthur Leff, a hearing examiner duly
selected by the Civil Service Commission in accordance with the provisions of Section 11 of the Administrative Procedure Act (5 U.S.C. 1010) and thereafter
duly designated by the Board to conduct the hearing
in this proceeding. The Applicant and the Board—
the latter in a nonadversary capacity—were repre2
An additional exemption request, covering Investment Company of St. Louis and docketed as BHC-18, was withdrawn
during the course of the hearing, with the explanation that
the Board had issued an opinion that that company was exempt
from the divestment requirements of the Act under another
section.

275

LAW DEPARTMENT
sented at the hearing by counsel, and were afforded
full opportunity to be heard, to examine and cro°sexamine witnesses, to introduce evidence bearing on
the issues, and to file briefs and proposed findings.
Leave was granted to Ben Du Bois, secretary of the
Independent Bankers Association, and to William L.
Gregory, representing Associate Bankers of St. Louis
and St. Louis County, to appear as witnesses. At the
hearing the aforesaid witnesses were allowed over
the Applicant's objection, to read prepared statements
in opposition to the exemption applications. Orders
correcting errors in the transcript were entered on
May 23, 1957, and on June 3, 1957.3 On July 1,
1957, the Applicant submitted proposed findings of
fact and conclusions of law, along with a brief in
support thereof. All such proposed findings and the
arguments contained in the brief have been considered.4
Upon the entire record in the case and from my
observation of the witnesses, I make the following:
Findings of Fact
I. INTRODUCTION

A. The Business of General Contract Corporation
in General
1. General Contract Corporation (herein GCC),
a Missouri corporation, with its principal office and
place of business at St. Louis, Missouri, is a bank
holding company within the meaning of Section 2(a)
of the Act, and has duly registered as such with the
Board. GCC, as of December 31, 1957, had issued
and outstanding 2,162,547.9 shares of $2 par value
common stock; 110,579 shares of $10 par value 6
per cent preferred stock; 43,695 shares of $20 par
value 5 per cent preferred stock; and 14,564 shares
of $100 par value 5 per cent preferred stock. It has
approximately 7,000 stockholders distributed in 44
States. Its common stock and the 6 per cent preferred
stock are listed on the New York Stock Exchange.
As of December 31, 1956, no single stockholder
owned more than 2.45 per cent of the common stock,
and the 10 largest stockholders together owned 13.66
per cent of such stock.
2. GCC owns all or most of the stock of eight
banks, located in the States of Missouri, Illinois and
Tennessee. The minimum amount of stock it owns
in any such bank is 86 per cent. In addition, it owns,
directly or indirectly, the following:
(a) Virtually all of the voting stock of a major
finance company (Securities Investment Company of
St. Louis) which is engaged principally in the business of purchasing instalment paper from automobile
dealers and others, and which, through subsidiary
companies, is also engaged in the business of making
personal loans to individuals and in acting as an insurance agency in connection with its financing and
lending activities. This finance company operates
branches in 15 cities located in nine States.
3
On Aug. 16, 1957, the parties submitted a stipulation to
explain and supplement certain facts in the record. The
stipulation is hereby admitted, and ordered filed as an exhibit
in this proceeding.
4
The proposed findings and conclusions are adopted to the
extent that their terms or substance are included in or are
consistent with the findings made below, and to the extent not
so adopted are rejected.




(b) All the stock in 10 mainly one-office small
loan and finance companies which are engaged in
the business of purchasing instalment paper from
various kinds of dealers and in making or arranging
for small loans to individuals. These companies are
located in eight cities in five States.
(c) All the voting stock of one insurance company
and 50 per cent of the voting stock of each of two
other insurance companies. The insurance companies
issue policies chiefly against loss or damage to automobiles and damage by fire and other hazards to real
property. The insurance companies also control an
investment company—Investment Co. of St. Louis.
RELATIVE IMPORTANCE OF SEVERAL CLASSES OF
SUBSIDIARIES

Classes of
subsidiaries

GCC capital
investment
Dollars

Per
cent

GCC assets
Dec. 31, 1956
Dollars

Per
cent

GCC

GCC net
income, 1956
Dollars

Per
cent

Banks
10,575,000 51.5 1264,449,412 73.7 2,084,711 58.85
Securities Investment
Company.. 7,014,656 35.0 72,142,789 20.1 616,064 17.39
Loan companies
195,000 0.9
2,034,401 .57 177,345 5.01
Insurance
companies. 2,518,089 12.5 17,183,641 4.79 556,530 15.79
Insurance
agencies...
14,000 0.1
297,318 .08 151,826 4.29
1
As of Dec. 31, 1956, the eight bank subsidiaries had aggregate
deposits of $236,592,000.

(d) All the stock of 10 insurance agency companies (other than the subsidiary agency companies
of Securities Investment Co.) whose activities consist
mainly of receiving insurance commissions on insurance business arising out of the finance and lending
activities of GCC banks and other subsidiaries to
which they are attached.
3. Annexed hereto as Appendix A is a chart listing
all banking and nonbanking subsidiaries of GCC.
The chart also reflects the places of incorporation of
each such subsidiary, GCC's percentage of common
stock ownership in each such subsidiary, and the place
of operation of each such subsidiary where it does not
have its own independent operating office.
4. Some idea of the relative importance in the GCC
holding company family of its several classes of
subsidiaries may be gleaned from the following table
which shows as to each such class (1) the amount of
GCC's capital investment; (2) its ratio to GCC's total
capital investments; (3) the amount of GCC's assets
represented by such class; (4) the percentage of the
total assets of GCC thereby represented; (5) the
amount of the 1956 net income to GCC from such
class, and (6) the percentage of the consolidated net
income of GCC that was represented by the consolidated net income of that class.5
5. GCC is engaged in business primarily as a
holding company. At present, it has only one direct
operation—a branch office at Texarkana, Texas, where
it handles automobile dealer financing and some trade
discount paper and also makes some personal loans.
5
The figures used in the table were supplied by oral testimony. In some instances they are at variance with other figures found in the record. Following the hearing a stipulation
was filed explaining the more important discrepancies.

276

FEDERAL RESERVE BULLETIN • MARCH 1958

The paper acquired and loans made by GCC at Texarkana are immediately sold by it at a discount without
recourse to Bank of St. Louis. Except for the employees at Texarkana, who are paid on a reimbursable
basis by Securities Investment Co., GCC has no employees of its own.
6. GCC's principal officers are the same as the
principal officers of Bank of St. Louis. All of its
officers, except one, are officers or employees of that
bank. Its holding company activities are conducted
out of Bank of St. Louis, the employees of which
perform its record-keeping and other functions.
7. The requests for divestiture exemption involved
in this proceeding cover all GCC nonbanking companies listed in Appendix A, except Investment Co.
of St. Louis and Pulaski County Insurance Agency.
Although an exemption application was originally
filed for Investment Co. of St. Louis, that application
was withdrawn during the course of the hearing for
the reason set out above in the Statement of the Case.
No exemption request was filed for Pulaski County
Insurance Agency because it is not now actively engaged in business and GCC intends to dissolve it.
B. The Evolution of GCC
1. GCC traces its origin to Industrial Loan Co., a
company which began operations at St. Louis in
January 1913 under the Morris Plan system of loans
and savings. Except for seven of the banks—that is,
all banks but Bank of St. Louis^and Securities Investment Co. and its then subsidiaries, which were
acquired, the complex of corporations now in the
GCC holding company system is an outgrowth of the
business that had its beginning with Industrial Loan
Co.
2. From its original business of making Morris
Plan loans, Industrial Loan Co. as early as 1917
branched out into the sales finance field, with particular emphasis on automobile dealer financing, and
in pursuit of such business expanded its activities to
areas outside St. Louis.
3. In 1923, the management of Industrial Loan Co.
organized Industrial Savings Trust Co., which, as a
corporation chartered under the trust company statutes
of Missouri, enjoyed the powers of a bank. The
trust company acquired the assets of the loan company and assumed its liabilities on outstanding Morris
Plan investment certificates. Thereafter it both engaged in banking activities and continued the operation of the loan and finance business that Industrial
Loan Co. had established.6 At the beginning, the
trust company accepted only savings deposits, but
later it also began to accept demand deposits. In
1934, the trust company changed its name to Industrial Bank and Trust Co. and moved its offices and
banking house to the present site of Bank of St. Louis.
4. During the period of its existence Industrial
Savings Trust Co.—later Industrial Bank and Trust
Co.—caused to be organized a number of subsidiary
finance and loan companies for the purpose of handling dealer paper and engaging in the loan business
principally in areas outside of St. Louis, including
locations in Missouri, Illinois, Arkansas, Tennessee,
Mississippi and Louisiana. It also caused to be
organized various insurance company agencies to act
8
Industrial Loan Co. was not dissolved, but continued to
function as a subsidiary of the trust company.




as agents for the placement of insurance in connection with the lending and financing activities in which
it and its subsidiaries were engaged. In 1940—
prompted by increasing difficulties it was experiencing
in obtaining adequate insurance coverage for financed
automobiles—it arranged for the organization of an
affiliated insurance carrier—Washington Fire and
Marine Insurance Co. During the same period, Industrial Bank and Trust Co. also indirectly acquired
through stock purchases control of two banks, Commercial and Industrial Bank, Memphis, Tennessee,
and Illinois State Bank of Quincy. By 1946, Industrial Bank and Trust Co., directly or through subsidiaries, owned all or most of the stock in two banks,
some nine loan or finance companies, an insurance
company, and three insurance agency companies.
5. For a period of several years prior to 1946,
bank examiners for the State of Missouri and for the
FDIC had been recommending that Industrial Bank
and Trust Co. discontinue investing its assets in other
corporations. To meet their recommendations, a
reorganization of the corporate structures of Industrial
Bank and Trust Co. and its subsidiaries was effected.
As a result, Bank of St. Louis was organized under
the banking statutes of Missouri. It acquired all the
assets—except stock in subsidiary companies—of Industrial Bank and Trust Co., and assumed the latter's
deposit liabilities. At the same time, a new corporation—originally named Industrial Bancshares Corporation and later General Contract Corporation—
was formed to become the successor to the holding
company functions of Industrial Bank and Trust Co.
GCC became the owner of the stock of Bank of St.
Louis, as well as the stock of subsidiary companies
that had previously been owned directly or indirectly
by Industrial Bank and Trust Co. The stock of GCC
was distributed on a pro rata basis to the stockholders of Industrial Bank and Trust Co., and the
latter company was then dissolved.
6. After its formation, GCC—
(a) Acquired controlling stock interests in five
additional banks—in July 1947, in Northwestern Bank
and Trust Co., St. Louis; in October 1948, in Baden
Bank, St. Louis; in December 1949, in JeffersonGravois Bank, St. Louis; and in December 1954, in
Bank of Benton and The Bank of Zeigler, both in
Illinois.
(b) Contributed, through its wholly owned subsidiary, Washington Fire and Marine Insurance Co.,
to 50 per cent of the capital of a new insurance company, named Insurance Co. of St. Louis, organized
in January 1950.
(c) Organized a number of additional loan companies to operate personal loan businesses at various
places, located in the States of Missouri, Illinois, Arkansas and Louisiana, as well as a number of additional insurance agency companies to act as agents
for the placement of insurance in connection with
loan and finance activities engaged in by GCC subsidiaries.
(d) Acquired in August 1952, more than 99 per
cent of the common stock of a major finance company, Securities Investment Co. of St. Louis (SIC),
by exchanging, pursuant to a public offering made
to SIC stockholders, GCC stock for SIC stock. SIC
at the time of acquisition operated a number of branch
offices in Missouri, Tennessee, Florida and Michigan.
It was also a holding company which at the time
of acquisition had six wholly owned subsidiaries, in-

LAW DEPARTMENT
eluding four small loan companies (one since dissolved), an insurance agency company, and an insurance company engaged in writing physical hazard
insurance. The insurance company—Midwestern
Fire and Marine Insurance Co.—was later transferred by sale to the direct ownership of GCC, its
outstanding capital stock was then doubled, and the
added stock was sold to an unaffiliated company, St.
Louis Insurance Co., with the result that GCC now
owns 50 per cent of the outstanding stock of that
company. SIC, since its acquisition by GCC, has
organized five additional insurance agency companies
to receive commissions on insurance business generated by that company and its subsidiaries.
7. From 1946 to the end of 1951, GCC was simply
a holding company and did not directly carry on any
business. At the end of 1951, GCC took over the
finance operations which had theretofore been conducted by two of its subsidiaries,7 both since dissolved,
at branches in 11 cities in the States of Arkansas,
Mississippi, Illinois, Louisiana, Texas and Missouri.
During 1954 and 1955, however, GCC transferred all
such branch finance operations to SIC, except for the
one branch at Texarkana, Texas, that GCC still
operates; so that today, save for the one branch, GCC
is again simply a holding company.
C. The Eight Banking Subsidiaries of GCC, Their
Location and the Character and Scope of
Their Activities
1. The eight bank subsidiaries of GCC are:
(a) Bank of St. Louis. This bank is incorporated
under the Missouri banking statutes, but also possesses
trust powers under the Missouri trust company
statutes. With total resources of $128,190,383 at
the end of 1956, it ranked fourth in size among St.
Louis' 35 banks. It is by far the largest of the eight
banks in the GCC family. As the direct successor of
Industrial Bank and Trust Co., it is still the nerve
center of the GCC holding company system, though
it has been divorced from stock ownership of other
companies in the system. Its top management is
the same as that of GCC; its employees handle the
details of GCC's holding company activities; and it
acts as the clearing house for the exchange of information and for the coordination of activities among
all companies in the GCC family. The principal
officers of Bank of St. Louis are on the boards of
directors of all other GCC subsidiary banks, except
Bank of Benton and The Bank of Zeigler. They are
also on the boards of Securities Investment Co. and
the three insurance companies. Apart from GCC
itself, there are three GCC subsidiaries that operate
out of Bank of St. Louis, conducting their affairs with
bank employees. They are Apex Insurance Agency,
St. Louis-Washington Insurance Agency, and Industrial Loan Co. In addition, there are other insurance
agency subsidiaries of GCC that use Bank of St.
Louis employees for record keeping or other functions.
The relationship of such subsidiaries to the bank will
be more fully described in subsequent sections of this
report.
(b) Jefferson-Gravois Bank is a neighborhood
bank, located about three miles southwest of the
downtown section of St. Louis where Bank of St.
Louis is located. It was incorporated under the banking laws of Missouri, but later also acquired trust
7
The subsidiaries were General Contract Purchase Corporation (Ark.) and General Contract Purchase Corporation
(Mo.).




277
company powers. Jefferson-Gravois Insurance Agency
is attached to this bank, carrying out its functions
with bank employees.
(c) Northwestern Bank and Trust Company, incorporated under the Missouri trust company laws, is
located about one and one-half miles from Bank of
St. Louis. Northwestern Insurance Agency performs
its functions at this bank with bank employees.
(d) Baden Bank, incorporated under the banking
laws of Missouri, with later acquired trust company
powers, is located in an outlying area of St. Louis.
Baden Loan Co. is attached to this bank, operating
with bank employees, and makes initially almost all
the personal loans that are carried by this bank.
Another GCC subsidiary, Reid-Kruse, an insurance
agency, is also located at this bank, operating with
bank employees.
(e) Commercial and Industrial Bank is located in
the Sterick Building in downtown Memphis, Tennessee. Originally a Morris Plan bank, it still operates
under that general plan, though no longer through
franchise agreement with the Morris Plan Corporation,
but, in addition, is now also privileged to, and does,
accept commercial and savings bank deposits and
conduct a general banking business. No other GCC
subsidiary operates directly in this bank, but Sterick
Insurance Agency operates an office with two employees of its own on the lobby floor of the building
where this bank is housed.
(f) Illinois State Bank of Quincy is located at
Quincy, Illinois, a city with a population of 44,000
that is also the home of four other banks. Quincy
Insurance Agency is attached to this bank, using bank
employees to carry out its functions.
(g) Bank of Benton is located at Benton, Illinois—
population, 7,800—located about 100 miles from St.
Louis. Insurance business generated by this bank
and by The Bank of Zeigler is placed through Springfield Insurance Agency with bank employees handling
the placement details.
(h) The Bank of Zeigler is located at Zeigler, Illinois—population 2,500—about 14 miles from Benton.
2. Each of the eight banks is engaged in a general
banking business, accepting demand and time deposits, and making loans of various kinds, including
real estate loans, commercial loans, personal loans and
home improvement loans. Each of the banks, moreover, purchases consumer credit paper from dealers
arising out of instalment sales of automobiles and
furniture and household appliances, and also makes
floor plan or wholesale loans to automobile dealers
principally, but occasionally also to appliance dealers.
3. Though engaged in a general banking business,
the GCC banks are particularly active in the field of
consumer credit loans.8 The ratio of consumer credit
loans to all loans made by the GCC banks is higher—
in most cases very substantially so—than the ratio to
be found generally among commercial banks.9 Much
emphasis is placed by most banks in the GCC family
on automobile dealer financing activities—a fact of
considerable importance to the issue, later to be considered, of whether GCC should be allowed to retain
its insurance company and insurance agency subsidiaries. The following table provides the details reflecting the extent to which each GCC bank was
8
Included in this category, as here used, are personal loans,
automobile, furniture and appliance paper purchased from
dealers, FHA Title I and modernization loans.
9
The average ratio of consumer credit loans to total loans
for all commercial banks in the nation, as of December 1956,
came to approximately 13 per cent.

278

FEDERAL RESERVE BULLETIN • MARCH 1958

involved at the close of 1956 in consumer credit
lending, and shows also the measure of its involvement in automobile dealer financing:
CONSUMER

CREDIT

Bank

St. Louis
Jefferson-Gravois
Northwestern. . .
Baden
C. and I
Quincy
Benton
Zeigler

AND AUTOMOBILE
GCC BANKS
December 31, 1956

LENDING BY

Consumer
Retail
credit loans
Active
Total
automobile
autoloans
accounts
(ThouAsa mobile
sands (Thou- per- dealers
sands cent- financed
of
(Numage
of
Dolber)
of
Num- Dollars
lars) Dollars) total
ber
loans
51, 604 22,359
14,672 4,492
10,700 3,696
9,913 1,879
10,948 8,149
11,881 6,650
3,710 1,476
2,626
417

43
33
34
19
74
56
40
16

91
13
15
0
17
48
7
0

10,416
2,477
1,779
45
5,375
3,386
447
122

10,591,718
3,656,820
2,180,000
•380,602
4,693,541
3,758,778
399,820
95,377

* Including participations.
II. SECURITIES INVESTMENT COMPANY OF
ST. LOUIS AND ITS SUBSIDIARIES

A. The Business of SIC
1. Securities Investment Co. of St. Louis, herein
SIC, is a Delaware corporation qualified to do business in the States of Missouri, Illinois, Tennessee,
Arkansas, Mississippi, Florida, Oklahoma, Texas and
Alabama.10 It is by far the largest of GCC's nonbanking subsidiaries.
2. SIC is directly engaged primarily in the business
of acquiring retail instalment notes (principally from
automobile dealers but also from furniture and appliance dealers), making wholesale loans to dealers,
making other discount basis loans, and discounting
notes receivable from finance companies. Its home
office is located at St. Louis. It conducts its operations through 15 branch offices located in nine States.
The branch offices are located at Jonesboro and Little
Rock, Arkansas; at Pensacola, Florida; at Jacksonville
and Springfield, Illinois; at New Orleans, Louisiana;
at Hattiesburg, Jackson and Meridian, Mississippi; at
Kansas City, Sikeston and St. Louis, Missouri; at
Tulsa, Oklahoma; at Nashville, Tennessee; and at
San Antonio, Texas.11
3. (a) SIC also has two wholly owned subsidiaries,
which operate out of branch offices of SIC, and are
engaged in the business of making personal loans to
individuals. They are Securities Credit Company,
a Missouri company located at SIC's home office in
St. Louis, and Securities Credit Company, 2L Florida
corporation, which conducts its operation at SIC's
10
As of Dec. 31, 1956, SIC had outstanding 297,840 shares
of $10 par value common stock and 35,000 shares of $100 par
value preferred stock. GCC owned 297,413 shares, or 99.97
per cent of the common stock. The nonvoting preferred stock
was held entirely by Mutual Life Insurance Co. of New York
and Diversified Investors Syndicate.
11
Nine of these branches were at one time owned by Industrial Bank and Trust Co. They were acquired by SIC from
GCC in 1954 and 1955. Prior to their acquisition by SIC, the
nine branches sold their paper to Bank of St. Louis, but no
longer do so.




Pensacola branch office. A third personal loan company subsidiary of SIC—Securities Loan Company—
is also included in this proceeding. That company,
which is housed at SIC's Nashville branch, was in the
process of liquidation at the time of the hearing, and
no longer an operating company. The officers and
directors of the three loan company subsidiaries are
all officers and employees of SIC.
(b) Securities Credit Co. (Florida) and Securities
Loan Co. operate under small loan licenses issued by
the States of Florida and Tennessee, respectively.
They are consequently able on loans up to $300 to
charge higher rates of interest than may banks doing
business in those States. In the State of Missouri,
where Securities Credit Co. (Missouri) is located,
banks under a provision of the Missouri Constitution
proscribing discrimination as among lenders, are
allowed to charge the same interest rates as small loan
companies (1945 Constitution of Missouri, Art. Ill,
Sec. 44; Household Finance Corporation v. Shaffner,
356 Mo. 808, 203 S.W. (2d) 734).
4. In addition to the loan company subsidiaries,
SIC has six wholly owned subsidiary insurance company agencies, which nominally act as agents for the
placement of insurance required in connection with
the finance and loan operation of SIC and its subsidiaries, and receive the commissions earned on such
insurance business. Broadway Insurance Agency
handles the Missouri business of SIC; Securities Insurance Agency, the Illinois business; Investment Insurance Agency, the Arkansas business; Craighead
Insurance Agency, the Texas business; Palafox Insurance Agency, the Florida business; and Davidson
Insurance Agency, the Tennessee business. The insurance agencies handle no business other than that
generated by SIC and its subsidiaries. Except for
some credit life insurance which is placed through
outside companies, all policies are written through
GCC affiliated companies. The SIC insurance agency
subsidiaries have no separate offices or paid employees
of their own. Operational details in connection with
the placement of insurance are taken care of by
SIC employees.
5. SIC and its subsidiaries are engaged in no activities that are not of a financial or insurance nature.
6. The finance and lending operations of SIC
parallel to a considerable degree the consumer credit
operations of GCC banks. To the extent that their
operations are the same, they require similar management skills and there is a cross-adaptability of acquired experience and "know-how". Under GCC
sponsorship, there is constant contact between representatives of GCC banks handling consumer credit
operations and representatives of SIC. The two
groups provide each other with statistical and other
information concerning market conditions, exchange
ideas on the development of new business, aid each
other in establishing improved standards and operating
procedures, and otherwise jointly consider matters of
common interest. On occasions also, banks in the
GCC family and SIC have aided each other to retain
old business or to acquire new business.
7. There is, however, no direct functional integration between SIC's operations and the operations of
GCC banks. Except for the exchange of information
and the like, SIC and the banks are conducted as
entirely separate and independent businesses. Although SIC operates primarily on money it borrows
from banks, it looks solely to unaffiliated banks as a

LAW DEPARTMENT
source for such funds.12 SIC borrows no money from
GCC banks. Neither it nor its subsidiaries purchase
any loans from GCC banks, sell any loans or acquired
paper to GCC banks, have any direct business dealings with such banks, or perform any operational
services for them.
8. Though there are similarities between the business conducted by SIC and the banks, there are substantial differences, too. The banks' lending activities
cover a much broader range. The banks receive deposits; SIC does not. The banks operate largely with
depositors' funds; SIC uses its own capital and the
money it privately borrows. Because MC's business
does not contain the same elements of fiduciary responsibility that are to be found in the banking business, it is not affected with the same public interest.
Its activities are therefore not subject to the same
general governmental supervision and regulation.
SIC is subject to supervision and examination only
with respect to that segment of its business that comes
under State small loan regulations.
B. Analysis and Concluding Findings as to SIC and
Its Subsidiaries
The basic facts, as I see them, on which decision in
the SIC case must turn are these: SIC engages entirely in activities that are similar in kind to some but
not all the activities in which banks generally, and
the Applicant's banks in particular, also engage. Because the two businesses possess many common characteristics, they also require many common management skills. But GCC and the Applicant's banks have
no business dealings with each other, and there is no
direct connection in a functional, operational or servicing sense between SIC's activities and those of the
Applicant's banks.13
The issue thus comes down to this: In the absence
of any functional integration, is partial parallelism in
the type of business activity pursued alone enough to
support a "closely related" determination under Section 4(c)(6) of the Act?
That issue, which involves basically a question of
statutory construction, may no longer be regarded as
an open one. It was recently considered by the Board
in the Transamerica case,14 and disposed of adversely
to the position of the Applicant here.15 The Board
said, in part:
" . . . it is clear that the mere fact that some of Occidental's operations resemble or are kindred to some
of the operations of banks is not enough to warrant
the kind of determination intended by Section 4(c)
12
SIC has approximately 60 bank lenders. At the time of
the hearing it had lines of credit totaling $54 million.
13
Contrary to the Applicant's assertion, the record does not
substantially support a finding that the banks are dependent
upon SIC for the continued efficient conduct of their own
consumer credit operations. The record does show, to be
sure, that SIC and the banks interchange information and ideas
at the holding company level that are of value to each. That
is only to be expected among members of the same holding
company family. But it was not disputed at the hearing that
the same experience, know-how, and training that are to be
found in the SIC organization are still to be found, and to a
like degree, in the management and personnel of Bank of St.
Louis.
14
In the Matter of the Application of Transamerica Corporation relating to Occidental Life Insurance Company, Docket
No. BHC-28, decided Aug. 20, 1957. (See Federal Reserve

BULLETIN, September 1957, pp. 1014 ff.)

15
Though this case presents a somewhat different factual
situation, the basic question of statutory construction is the
same. The arguments submitted on that question by the Applicant in this case do not vary substantially from those presented
to the Board by the applicant in the Transamerica case.




279
(6). Functions may be similar to banking or to managing or controlling banks without necessarily being
a 'proper incident' thereto, that is without 'naturally
appertaining thereto'.
"Stated differently, mere similarity of some functions is not enough to eliminate the 'potential sources
of evil' against which the general prohibition of Section 4 was aimed. This is especially the case when,
as here, there are also substantial differences in functions which could give rise to such 'potential sources
of evil'".
On the authority of the Board's decision in Transamerica—as well as on the basis of the legislative
history of Section 4(c)(6) and for other reasons set
out in my Report attached to the Board's decision in
that case—I conclude that the facts found above regarding SIC do not support a "closely related" determination under Section 4(c)(6) of the Act. The conclusion reached with regard to SIC applies equally, of
course, to all its subsidiaries.
Accordingly, denial will be recommended of the
exemption application, docketed as BHC-7, covering
Securities Investment Co. of St. Louis and its subsidiaries.
III. THE LOAN COMPANY DIRECT SUBSIDIARIES

A. Description of the Operations of Each of the
10 Companies
1. Industrial Loan Company, (a) Industrial Loan
Co., a Missouri corporation, is located at Bank of
St. Louis. Its officers and directors are also officers
or employees of that bank. All of its activities are
of a financial nature. It is engaged primarily in the
business of making personal loans, repayable in instalments. Most but not all of the loans are secured
by automobiles or household furnishings. Substantially all loans are 16 on the day they are made to
sold
Bank 17 St. Louis.
of
The loans are sold at a discount, but without recourse and without any purchase or guaranty agreement.
(b) Industrial Loan Co. (herein Industrial) is
operated in effect as though it were the personal loan
department of Bank of St. Louis. It has no separate
place of business or paid personnel of its own. All of
its functions are performed on the premises of Bank
of St. Louis by bank employees. The building directory does not carry Industrial's name, but does
state that the bank's instalment loan department is
located on the second floor of the bank premises.
There is nothing displayed on the second floor to
distinguish Industrial's operations from bank operations. An applicant for a personal loan calling at the
bank is referred to the personal loan department. If
his application is approved, he signs a note and other
loan instruments running to Industrial. The loan
proceeds are paid to him by a check drawn on Industrial's account with Bank of St. Louis. The borrower
receives a loan statement from Industrial in which he
is directed to "make all payments at second floor of
Bank of St. Louis". At the end of the day the note
16
During 1956, Industrial Loan Co. made 6,782 loans
amounting in the aggregate to $3,811,942. It sold all but
five of these, totaling $44,144, to Bank of St. Louis. The five
loans retained were not sold to the bank because they were
loans made to employees of the bank.
17
Thus, for example, on a loan with net proceeds to the
borrower of $300 and charges of $30, the loan would be sold
for $300 plus one per cent of $330, or $303.30. The one per
cent would represent Industrial Loan Co.'s profit on the transaction.

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FEDERAL RESERVE BULLETIN • MARCH 1958

and accompanying loan instruments are transferred
by sale to Bank of St. Louis, as stated above. The
borrower is not, however, notified of the transfer to
the bank. In the event of a default in payment, repossession of the pledged security is effected and suit
is filed in the name of Industrial. The bank, however, stands any ultimate loss, as well as the costs of
collection that may be incurred, and has no claim
over against Industrial.
(c) Substantially all personal loans carried by Bank
of St. Louis originate in the manner described above,
except for those loans which originate at the Texarkana branch of GCC and are sold to Bank of St.
Louis in like fashion. As of December 31, 1956,
Bank of St. Louis had 7,345 personal loans outstanding, amounting in all to $3,014,185. Of these, 6,943
accounts aggregating $2,847,374 were initially made
by Industrial Loan Co. and 396 accounts aggregating
$161,672 by the GCC Texarkana office. Only six
personal loans, totaling $5,139, were made directly
by Bank of St. Louis. It was explained at the hearing that the six direct loans represented exceptional
situations where, for reasons unimportant here, Industrial Loan Co. could not itself legally make the
loans, though the bank could.
(d) Industrial Loan Co. operates under the Missouri Consumer Credit Law which fixes rates of interest that may be charged on so-called small loans.
(1949 Mo. Rev. Stats., Sec. 48:100 et seq.) As of the
time of the hearing, the notes payable to Industrial
carried interest on unpaid balances at the rate of
2.218 per cent per month on that portion of the principal amount of the loan not in excess of $400, and
at the rate of 2/3 of one per cent per month of that
portion in excess of $400. Such interest charges,
which are added on to the amount of the note, are
within the requirements of Missouri's small loan laws.
The Missouri Constitution provides that any rate of
interest fixed by law must be applicable generally to
all lenders without regard to the type or classification
of their business. (1945 Constitution of Missouri,
Art. Ill, Sec. 44; Household Finance Corporation v.
Shaftner, 356 Mo. 808, 203 S.W.(2d) 734.) There
is therefore no legal impediment barring Bank of St.
Louis, if it cares to do so, from making the same loans
directly at the same interest rates.
(e) Applicant's witnesses at the hearing assigned
various reasons to explain why GCC chose to operate
through a separate corporate entity what is in effect
a personal loan department of Bank of St. Louis. Included among those stated at one time or another
were the following: (1) That it was a matter of
"historical diction" since Industrial Loan Co. was the
original corporation from which GCC's various personal loan operations eventually branched out. (2)
That the name of Industrial Loan Co. was well known
in the community because it was an early entrant in
the field of small loan lending in St. Louis, and the
public still looked to it 13 the place where personal
as
loan needs might be met.
(3) That there have been
times under Missouri laws when it was possible for
Industrial to arrange for small loans at charges higher
than that permitted banks under the general usury
laws, and that it was considered desirable to maintain
Industrial as a separate entity to guard against the
18
It is difficult, however, to reconcile this reason with the
fact that Industrial is no longer advertised or held out to the
public as an independent company. Moreover, loan applicants
are at least initially led to believe that they are dealing with
Bank of St. Louis through its own instalment department.




eventuality that such a time might return again. (4)
That with Industrial in the picture it was possible to
bring repossession proceedings and collection suits in
the name of Industrial rather than in the name of the
bank, thus keeping the bank's name out of the Small
Claims Court and making for better public relations.19
(5) That by maintaining Industrial as a separate corporate entity which drew off part of the profits from
the loan transactions that would otherwise go to Bank
of St. Louis, it was possible for GCC to effect an
ultimate income tax saving of approximately $5,000
per annum, because the first $25,000 of a corporation's
income is taxed at a 32 per cent rather than a 52 per
cent rate.
2. Baden Loan Company, (a) Baden Loan Co., a
Missouri corporation, located at Baden Bank, is engaged solely in the business of making personal loans,
repayable in instalments, and conducts no activities
that are not of a financial nature. The officers and
directors of the loan company are employees of
Baden Bank. As in the case of Industrial Loan Co.,
Baden Loan Co. has no separate employees of its
own and is not advertised at Baden Bank or elsewhere
as a separate corporate entity, but carries out its
functions with bank employees as if it were the personal loan department of Baden Bank. It conducts
its operations at Baden Bank in the same manner that
Industrial does at Bank of St. Louis.
(b) During 1956, Baden Loan Co. made 1,257 personal loans aggregating in amount of $910,035. It
sold all but two of these to Baden Bank. The two
loans retained were relatively large ones, totaling
$28,750. The loan company's earnings on loans sold
during the year amounted to $41,744—a figure indicating that Baden Loan Co.'s profit on loans sold
must be considerably more than the one per cent received by Industrial Loan Co.
(c) Baden Bank makes few personal loans directly.
As of December 31, 1956, it had 1,296 personal loans
outstanding, amounting in the aggregate to $845,659.
Only 19 of such loans, totaling $123,074, were made
directly by the bank. The rest were acquired from
Baden Loan Co.
(d) Walter Burtelow, GCC's executive vice president, testified that GCC was prompted to organize
Baden Loan Co. for this reason: At that time there
was still an unresolved legal question as to whether
banks must register to qualify as lenders under Missouri's Small Loan Law,20 and GCC preferred to have
a company other than the bank registered, so that
examinations under the Small Loan Law might not
be extended to cover the entire bank operations. Applicant's present reasons for retaining the loan company—as stated at the hearing—are substantially the
same as those given for retaining Industrial Loan Co.
However, James A. Reid, the president of Baden
Bank, added another. According to him, the loan
company avoided embarrassment to bank management
19
In view of the outright sales of the loans to Bank of St.
Louis, it is difficult to understand how suits may be brought
in the name of Industrial and yet comply with statutory requirements that suits must be filed by the real party in interest. The only explanation offered by the Applicant was that
the officiating magistrates were apparently unaware of real
party in interest requirements, and that in any event the
question had never been raised in any proceeding filed by
Industrial.
20
That question was finally resolved in Household Finance
Corporation v. Shaffner, supra, in which the Missouri Supreme
Court held, inter alia, that separate registration by otherwise
qualified lenders could not be required under the Missouri
Constitution.

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LAW DEPARTMENT
because the rates it charged, while legal, were considered unseemly for a banking institution.
3. Industrial Finance Company of Wellston. (a)
Industrial Finance Co. of Wellston, a Missouri corporation, maintains a single office at Wellston, a
suburb of St. Louis, where it is engaged solely in the
business of making personal loans and purchasing
dealer paper from furniture and appliance dealers.
All of its activities are of a financial nature. The officers and directors of the company are all employees
of Bank of St. Louis, but the company has its own
separate manager and paid employees.
(b) Industrial Loan Co. of Wellston retains all
personal loans it makes. During 1956, the company
made 551 such loans, totaling $248,948. Its earnings
on such loans came to $50,041. Before enactment of
the Bank Holding Company Act of 1956, the company
also retained all dealer paper it purchased, but borrowed against such paper from Bank of St. Louis to
obtain the funds necessary to carry on its dealer sales
finance operations. With the passage of the Act, that
procedure was changed. Now the Wellston company
sells all its dealer paper to Bank of St. Louis at a
discount without recourse or repurchase agreement.
The paper is sold without notification to the borrower.
Notwithstanding the sale, the Wellston company continues to service the paper to its finality. If in the
interim suit becomes necessary, it is brought in the
name of the Wellston company. During 1956, the
company purchased 1,934 items of furniture and appliance dealer paper, amounting in the aggregate to
$478,646, all of which it sold to Bank of St. Louis.
Its earnings on dealer paper came to $23,053.
4. General Contract Loan Company (Missouri).
General Contract Loan Co., a Missouri corporation,
is located in SIC's branch office in Sikeston, Missouri.
It makes personal loans and buys instalment paper
from furniture and appliance dealers. Its officers and
directors are employees of Bank of St. Louis, but it
operates with its own paid employees. It retains its
own loans and acquired dealer paper. It has no direct
business dealing with other GCC subsidiaries. The
money it borrows to conduct its lending and financing
operations is obtained from unaffiliated banks. During 1956, General Contract Loan Co. made 1,215 personal loans amounting to $380,376, of which $24,601
represented financing of loan accounts of Securities
Investment Co. It purchased 391 items of dealer
paper in the face amount of $99,343.
5. SIC Loan Company. SIC Loan Co., a Missouri
corporation, organized in March 1956, is located at
the Kansas City branch office of Securities Investment
Co. of St. Louis. Its officers and directors are employees of Bank of St. Louis, but it operates with its
own paid employees. The company is engaged principally in making small loans, but it also engages in
some automobile dealer and furniture and appliance
dealer financing. Until 1957, SIC Loan Co. retained
all its loans. At the start of this year, however, it
began selling all its furniture and appliance dealer
paper—but not its automobile dealer paper or its personal loans—to Bank of St. Louis. The paper is sold
at a discount, without recourse or repurchase agreement, and under the same operational arrangements,
described above, that are followed by Industrial Finance Co. of Wellston in the sale of like paper to
Bank of St. Louis. During 1956, SIC Loan Co. made
148 personal loans totaling $92,933, of which 42
loans, amounting to $45,557, were to refinance loan
accounts of Securities Investment Co. It also had 16




transactions in automobile dealer paper, amounting to
$8,767, and 3 in furniture and appliance dealer paper,
amounting to $1,096.
6. General Contract Loan Company, Inc. (La.).
General Contract Loan Co., a Louisiana corporation,
located at the SIC branch office in New Orleans, is
engaged in the business of making small personal
loans and buying furniture and appliance dealer paper,
as well as repair and modernization and FHA Title I
dealer paper. Its officers and directors are employees
of Bank of St. Louis. Under the Small Loan Law of
Louisiana21 banks may not qualify as lenders at the
rates of interest permitted licensed lenders under that
law. Banks may, however, acquire FHA Title I and
modernization paper as well as furniture and appliance
dealer paper at the rates charged by General Contract
Loan Co. This loan company retains all its personal
loans and furniture and appliance dealer paper. But
it sells all its FHA Title I paper and modernization
loans to Bank of St. Louis. The sales are made at
a discount, without recourse or repurchase agreement.
Further servicing of the paper sold is handled by employees of Securities Investment Co. of St. Louis.
General Contract Loan Co. reimburses SIC for such
services on the basis of a 40 per cent retention of
charges. During 1956, General Contract Loan Co.
made 672 personal loans, aggregating $408,410, of
which 98, totaling $143,772, represented refinancing
of SIC loan accounts. Its interest earnings on personal loans came to $61,755. It had 29 financing
transactions of furniture and appliance dealer paper,
amounting in all to $7,387, on which it earned interest
amounting to $584. It acquired and sold to Bank of
St. Louis 190 items of FHA Title I loans, amounting
to $162,239, and 273 items of modernization loans,
amounting to $498,820. Its gross earnings on Title I
and modernization loans sold came to $36,855. The
paper sold to Bank of St. Louis represented about 60
per cent of its total volume of business.
7. Quincy Union Finance Company. Quincy Union
Finance Co., an Illinois corporation is engaged at
Quincy, Illinois, in the business of making personal
loans under the Illinois Small Loan Act. As is true
of all the direct loan company subsidiaries, except
Baden Loan Co., the officers and directors of Quincy
are employees of Bank of St. Louis. Quincy's place of
business is about one-half block removed from Illinois State Bank of Quincy. Under the laws of Illinois, banks are not permitted to make loans at the
rates of interest allowed by the Small Loan Law.
(Smith-Hurd 111. Anno. Stats., Ch. 74, Sec. 38.)
Quincy operates with its own funds and with funds
borrowed from unaffiliated banks. All of its loans are
retained. During 1956, Quincy Union Finance Co.
had 1,569 loan accounts totaling $520,711, of which
44, amounting to $14,997, originated by refinancing
Illinois State Bank of Quincy accounts. Of its 1,569
loans, 81 were referred to it by the bank. Its interest
earnings for the year amounted to $65,604, and its net
earnings, after all expenses and taxes, to $18,404.
8. Springfield Union Finance Company. Springfield Union Finance Co., an Illinois corporation, is
located next door to the SIC's branch office in Springfield, Illinois. Its operations are identical to those of
Quincy Union Finance Co. During 1956, it had 1,564
loan accounts totaling $477,231, of which 23, amounting to $7,925, originated by refinancing SIC accounts.
Its earned interest on personal loans during 1956 was
21

West's La. Rev. Stats. Anno., Sec. 6.593.

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FEDERAL RESERVE BULLETIN • MARCH 1958

$74,180. Its net earnings after taxes came to $21,101.
9. General Contract Loan Brokers, Inc. (a) General Contract Loan Brokers, a Mississippi corporation, operates at two locations in Mississippi, one
at Jackson and the other at Meridian, both at SIC
branch offices. It acts as a broker in arranging
personal loans for borrowers from Deposit Guaranty Bank and Trust Company, a nonaffiliated bank
in Jackson, Mississippi. But though technically a
broker, this company operates for all practical purposes as though it were a loan company making the
loans itself. The company solicits loan business; interviews prospective borrowers; investigates their
credit; approves or rejects credit of applicants; when
credit is approved, prepares all necessary loan papers
for signature by the borrower, and arranges for the
disbursement to the borrower of the loan proceeds at
its own office. Thereafter, the company services the
loan to final collection. The only substantial difference between the brokerage operation and the operation of a direct loan company is that the loan papers
are made payable to the bank and the loan proceeds
are paid by a draft drawn by the borrower on the
bank. The draft, however, is endorsed by the borrower to the order of the brokerage company and
cashed by it, with the borrower receiving the net
proceeds of the loan only after all brokerage and other
charges have first been deducted.22 The type of brokerage operation engaged in by General Contract Loan
Brokers has been upheld by the Supreme Court of
Mississippi as outside the proscription of that State's
usury laws. See Towers Underwriters, Inc. v. Lott,
48 So. (2d) 704.
(b) During 1956, General Contract Loan Brokers
arranged for 1,551 such loans from Deposit Guaranty
Bank and Trust Co. in an aggregate amount of
$685,332, of which 545 loans, amounting to $275,914,
represented the refinancing of borrowers' loan accounts with SIC. The company earned $72,187 in
brokerage fees during the year. Its net earnings after
expenses and income taxes came to $17,747.
10. General Loan Company. General Loan Co.,
an Arkansas corporation, is not now in operation.
It formerly operated as a small loan company at
Little Rock, Arkansas, but suspended operations when
the Arkansas Small Loan Law was declared unconstitutional by the Supreme Court of that State. General Loan Co. has, however, been kept alive by GCC
in the hope that Arkansas may soon have loan legislation that will enable the company to resume operations. It has been included among the subsidiary
companies for which GCC seeks divestiture exemption
in this proceeding for the same reason.
B. Analysis and Concluding Findings as to the 10
Loan Company Subsidiaries
1. In general. The Applicant would support its
exemption requests for all 10 companies primarily
upon the ground that what they do parallels some of
the activities in which banks also engage. The Applicant urges an added ground, applicable to certain but
not all the loan subsidiaries, that the activities of such
loan companies are functionally integrated with, and
22
The following example was given at the hearing to illustrate
the charges on a 12-month instalment transaction: On a loan
on which the borrower receives net proceeds of $359, his note
is for $420—the charges being the bank discount, amounting
to $14.70, a credit life insurance premium amounting to $4.20,
and brokerage fees amounting to $42.10.




an adjunct to, banking operations conducted by GCC
banks.
The first ground urged is essentially the same as
the one advanced by the Applicant to support its
exemption request covering Securities Investment Co.
of St. Louis and its subsidiaries. For reasons stated
in the analysis of the SIC case, that is found an inadequate basis upon which to predicate a "closely
related" determination under Section 4(c)(6). This
finding is dispositive, without more, of half the exemption requests immediately under consideration. As to
General Contract Loan Co. (Mo.), Springfield Union
Finance Co., Quincy Union Finance Co. and General
Loan Co., there is no claim, and certainly no evidence,
that their lending and dealer financing activities are
integrated in a direct, operational or functional sense
with the carrying out of bank operations. As to General Contract Loan Brokers, the claim is made that the
brokering operations of that company not only are
analogous to bank lending operations, but also are
functionally integrated with specific operations of the
unaffiliated bank—Deposit Guaranty Bank and Trust
Co.—for which it acts as loan broker. But that alone
is not enough to satisfy the "closely related" requirements of the statute, particularly as interpreted by
Section 5(b) of the Board's Regulation Y.
Under that section—as I interpret it, and as it appears to have been applied in the Board's decision in
the Transamerica case—it is necessary to show, not
only that a nonbanking business is by its nature a
"proper incident" to banking or to managing or controlling banks, generally, but also that the requisite
close relationship has specific application to the like
business conducted by the applicant bank holding company or its banking subsidiaries. That construction,
I am persuaded for reasons elsewhere stated, comports with the intent of Congress.23
That leaves for consideration, then, the cases of the
five loan company subsidiaries with activities functionally connected in whole or in part with activities
engaged in by GCC banks. As found above, the
operations of Industrial Loan Co. and of Baden Loan
Co. are almost entirely integrated with the activities
of Bank of St. Louis and Baden Bank, St. Louis,
respectively. Substantially all the personal loans held
by such banks are originated by the loan companies
attached to them and are contemporaneously purchased by the banks at a discount but without right of
recourse against the loan companies. Industrial Finance Co. of Wellston and General Contract Loan Co.
(La.) each sells the majority of the loans or dealer
paper it acquires to Bank of St. Louis at a discount
without recourse. SIC Loan Co. sells a part of the
dealer paper it acquires to Bank of St. Louis on the
same basis.
Neither the fact that such a functional relationship
appears in the cases of five of the loan companies, nor
the fact that the relationship may be a "close" one—
as it undoubtedly is in the cases at least of Industrial
Loan Co. and Baden Loan Co.—is, however, fully
dispositive of the issue that must here be decided.
The statute requires as a condition to divestiture
exemption that the Board determine not only that a
nonbanking subsidiary is so "closely related" to banking operations as to be an "incident" thereto, but that
the "incident" is a "proper" one. It is to a consideration of that aspect of the issue that we now turn.
23
See Hearing Examiner's Report attached to the Board's
decision in the Transamerica case, published in Federal Reserve BULLETIN for September 1957, pp. 1019-35.

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LAW DEPARTMENT
2. The "discount" question. Consideration of the
"proper incident" aspects poses at the outset an important question of statutory construction. Section
6(a)(4) of the Act makes it unlawful for a bank
". . . to make any loan, discount or extension of
credit to a bank holding company of which it is a
subsidiary or to any other subsidiary of such bank
holding company."
The finding that five of the nonbanking loan subsidiaries of GCC are engaged wholly or partly in
activities functionally related to GCC bank operations is predicated entirely upon the fact that they
originate and sell to GCC banks consumer credit
paper at a discount, but without recourse and without
any guarantee or repurchase agreement of any kind.
If the acquisition by the subsidiary banks of such
paper constitutes the making of a "discount" within
the meaning of Section 6(a) (4), it would be a form
of self-dealing proscribed by that section. And it
would thus follow virtually as a matter of law that
the relationship between the loan companies and their
affiliated banks is not such as to constitute a "proper
incident" to the business of banking, as conducted by
GCC and its banking subsidiaries.
Though the Applicant argues to the contrary, there
is much to support the view that Section 6(a) (4) is
applicable to the type of dealings here involved. As
the Applicant concedes in its brief, the term "discount" as used in the commercial world is broad
enough to cover three kinds of transactions: (a) a
two-party transaction wherein a borrower delivers
his note to a bank and receives from the bank a sum
of money which is less than the amount of the note;
(b) a three-party transaction wherein the negotiable
paper of a third party is endorsed by the holder and
delivered to the bank in return for a sum of money
which is less than the amount of the note; and (c) a
three-party transaction—such as is here involved—
where the note or other negotiable paper of a third
party is delivered to the bank without endorsement
(or with a "without recourse" endorsement) in return
for a sum of money which is less than the amount of
the note. Though the third type of transaction, unlike
the first two, carries with it no obligation, direct or
contingent, on the part of the person "discounting"
the note to pay the amount due, and therefore is
clearly in the nature of a purchase without strings
attached, it no less than the others falls within the
broad definition of a discounting transaction as usually understood.
Ample judicial authority supports the conclusion—
in the words of the Third Circuit Court of Appeals—
that, "in the business of banking, 'discount' in the ordinary acceptance of the term, includes what is called
'purchase' ".24 Moreover, the Federal Courts have
interpreted other sections of the national banking laws
where the term "discount" is used as including within
its scope, not only loans or advances by way of discount of commercial paper, but also the outright purchase by banks of such paper for an amount less than
their face value. Thus it has been held that the au24
Donforth v. National State Bank of Elizabeth, 48 Fed. Ret).
2^1, 274. See also Fleckner v. Bank, 8 Wheat. (U. S.) 338;
Morris v. Third National Bank of Svringfield, 142 Fed. Rep.
25, 31 (C. A. 8 ) : cert. den. 201 U. S. 649: Saltnwrch v.
Planters & Merchants Bank, 14 Ala. 677; Neillsville Bank v.
Tuthill, 4 Dak. 295, 30 N. W. 154, 156; Pape v. Bank, 20 Kan.
4^0, 446; 27 Am. Rep. 183; Salmon Falls Bank v. Leyser, 116
Mo. M, 71. 22 S. W. 504, 509: Trw v Talr*nHge, 18 Barb.
(N. Y.) 456; Bank v. Savry, 82 N. Y. 291, 302.




thority of national banks to acquire title to commercial paper—authority that must stem from an express
grant of power or impliedly be deemed prohibited ^—
is derived from the statutory corporate power given
national banking associations under U. S. Rev. Stats.,
Sec. 5136, 12 U.S.C., Sec. 24, to engage in the "discounting" of "promissory notes, drafts, bills of exchange and other evidences of indebtedness."26 Thus,
too, the term "discount" as used in U. S. Rev. Stats.,
Sec. 5197, 12 U.S.C., Sec. 85, which prohibits usury
by national banking associations on loans or discounts
made by them, has been held to include within its
scope, not only transactions involving bank loans to
the person for whom paper is discounted, but also
transactions involving bank purchases of third party
paper—and this regardless of whether such paper is
purchased27with or without any right of recourse upon
the seller.
The Applicant argues earnestly, however, that notwithstanding the broad commercial usage of the term
"discount", Congress in drafting Section 6(a)(4) intended to draw a distinction between, on the one
hand, a discount involving a direct loan to an affiliated
company, or an advance to such affiliate on discounted third party paper for the payment of which
the affiliate assumes liability as an endorser or guarantor, and, on the other hand, a transaction involving a
bank's purchase of third party paper at a discount
from an affiliate without any right of recourse upon
the affiliate. The Applicant concedes that Congress
intended the prohibitions of Section 6(a)(4) to apply
to transactions of the first two types, but not, it contends, to those of the third type.
The arguments upon which the Applicant would
support that position are ably marshalled in its brief.
The main points stressed are, in broad outline, as follows: (1) It is urged that Section 6(a) (4) may not
be read in isolation, but must be read in context with
the other subdivisions of Section 6(a). It is claimed
that 6 ( a ) ( l ) , prohibiting investments in capital stock,
bonds, debentures or other obligations of an affiliated
company; 6(a)(2), prohibiting the acceptance of such
capital stock, bonds, debentures or other obligations
as collateral for advances made to any borrower; and
6(a)(3), prohibiting the purchase of securities, other
assets or obligations from an affiliate under a repurchase agreement—all disclose a Congressional concern
over a bank relying on the worth or credit of its parent
or fellow subsidiaries in its investment or lending activities. According to the Applicant, consistency and
harmony with the pattern shaped by the earlier subdivisions demand that Section 6(a) (4) also be construed as applying only to situations where a transaction calls for bank reliance on the credit or worth
of an affiliate. And such reliance, it says, is not involved in the case of an outright purchase of paper
where there is no residue of liability on the part of
the transferor. (2) It is claimed that Section 6(a)(3)
allows by implication the purchase from an affiliate
"of securities, other assets or obligations" where there
is no repurchase agreement, and it is asserted that
the terms "securities" and "obligations" as therein
used are broad enough to cover the purchase of con35

122.
26

First National Bank v. National Exchange Bank, 92 U. S.

Morris v. Springfield National Bank, supra. See also Danforth v. National State Bank, supra, p. 274.
27
Danforth v. National State Bank, suvra. Cf. National
Bank of Gloversville v. Johnson, 104 U. S. 271; Daniel v. First
National Bank of Birmingham, 227 Fed. Rep. (2d) 353, 355
(C. A. 5).

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FEDERAL RESERVE BULLETIN • MARCH 1958

sumer credit paper, thereby in effect limiting the
breadth of "discount" as used in Section 6(a) (4).
(3) It is urged that the coupling in Section 6(a) (4)
of the word "discount" with the words "loans" and
"extensions of credit" denotes an intention to have
them all understood in the same general sense, as
covering only such transactions as involve the lending
or advance of money to an affiliate for which the
affiliate assumes responsibility for repayment.
But in arguing for a thus limited construction of
the term "discount", the Applicant ignores entirely
the legislative history bearing on the question of Congress' actual intent. In view of the admittedly varying meanings that that term allows, reference to such
history seems to me both appropriate and important.
During the Committee hearings leading to the enactment of the statute, frequent reference was made
by proponents of the proposed legislation to the
Bankers Discount Corporation situation as a flagrant
example of the danger of abuse flowing from selfdealings between 28bank holding companies and their
subsidiary banks.
That situation involved a Texas
finance company that acquired control of two Chicago banks and then, among other things, caused the
acquired banks to purchase from it at a discount and
without recourse notes of questionable value that it
held, resulting 29 a forced temporary closing of the
in
Chicago banks. The House Committee, in reporting
out H.R. 6227, which contained a provision identical
to Section 6(a)(4), adverted to the Bankers Discount
situation at two places in its Report.80 In the course
of its discussion of the self-dealing limitations of what
is now Section 6(a) of the Act, it cited the Bankers
Discount situation as a striking example of "the inadequacy of the [then] existing law with respect to
self-dealing between bank holding companies and
their subsidiary banks". And as a reason for including self-dealing provisions in the form now found in
Section 6(a) of the Act, the Report stated:
"Your committee feels that to fail to prohibit selfdealing between bank holding companies and their
subsidiary banks would be to invite a repetition of the
[Bankers Discount] situation described above."31
To accept the Applicant's limited construction of
the term "discount" in Section 6(a)(4) would be to
hold in effect that Congress, notwithstanding its
clearly explicated anxiety to guard against a recurrence of a Bankers Discount situation, nevertheless
failed to make adequate statutory provision therefor.
For, either a bank's purchase without recourse of
notes from an affiliated company—the precise situation in the Bankers Discount case—is prohibited
28
See, for example, Hearings before House Committee on
Banking and Currency on H. R. 2674, pp. 165, 210, 216, 84th
Cong. 1st Sess.; Hearings before Subcommittee of the Senate
Committee on Banking and Currency on S. 880, S. 2350 and
H. R. 6627, p. 65, 84th Cong. 1st Sess. (testimony of Governor
Robertson).
29
The facts concerning the Bankers Discount Corporation
situation are set out at length in H. Rep. 609, p. 18, 84th Cong.
30

Ibid.,

p p . 4 , 1819.

81
The Senate Report does not specifically mention the
Bankers Discount situation. But the Senate appears to have
shared the House's concern, as is revealed by the following
passage from its Report (S. Rep. 1095, p. 4, 84 Cong.):
". . . fear has been expressed that, improperly but within
the present law, a bank holding company may take undue
advantage of one or more banks in its system. This it might
do by discounting commercial paper at the bank with resulting profit to the bank holding company but at an unwarranted
risk to the bank or its shareholders. No widespread abuse of
this nature has been brought to the attention of your committee,
but the provision in the bill prohibiting upstream lending
should adequately prevent the possibility of any such abuse."




through application of the term "discount" in Section
6(a)(4), or it is not prohibited at all. Such carelessness in legislative draftsmanship is not lightly to be
attributed to Congress. Nor is it reasonably to be
assumed that Congress deliberately intended the distinction urged by the Applicant. If, as the Applicant
virtually concedes, Congress considered it a source of
potential evil warranting prohibitory legislation for a
banking subsidiary to be allowed to purchase from
its holding company or another affiliate commercial
paper with recourse, to say that Congress at the same
time meant to leave banks free to make such purchases without recourse—in other words, with less
protection to the bank and its depositors—seems to
me to make little, if any, sense.
Thus logic and legislative history combine with
commercial word usage and judicial interpretation to
give the term "discount" in Section 6(a)(4) a meaning
that would include the purchase by way of discount of
consumer credit paper, though no right of recourse
upon the seller is reserved.
Nor do I think the solid considerations supporting
that construction are successfully undermined by the
arguments the Applicant has advanced to support the
construction upon which it insists.
To begin with, I am not persuaded that to interpret
"discount" in Section 6(a)(4) as including a purchase
of commercial paper by way of discount would inject
a discordant note in the provisions of Section 6(a)(3)
read as a whole. It seems to me too narrow a view to
say that Section 6(a) was only designed to prevent a
bank from relying on the worth or credit of an affiliated company in the conduct of its banking activities. I think the broader aim of Section 6(a), as
revealed by all its subdivisions, was to remove the
danger that a bank holding company might misuse
the resources of a bank it controls to gain an advantage for itself or other subsidiaries it also controls.
This a holding company might otherwise do by causing a controlled bank to provide equity or working
capital, directly or indirectly, to the holding company
or another subsidiary, or by otherwise financing the
business operations of such an affiliate. To interpret
"discount" as used in Section 6(a)(4) in the full sense
of that term as established by commercial usage is
entirely consistent with that aim. For, obviously, a
bank's resources might be used to finance the operations of a parent or other affiliated company just as
much through purchase of commercial paper without
recourse, as through purchase with recourse, or M
by
means of a loan against the pledge of such paper.
Further, I am not persuaded that a broad construction of "discount" in Section 6(a)(4) would create
perforce an inconsistency with Section 6(a) (3). Section 6(a)(3) was evidently designed to cover a transaction which is in reality a loan transaction, but which
takes the form of a purchase and repurchase agreement. By its terms it spells out a prohibition against
a specific type of transaction, and goes no further. It
confers no affirmative right with which the "discount"
prohibition, no matter how broadly construed, may
be found inconsistent. And even if Section 6(a)(3)
82
This is aptly illustrated in the case of Industrial Finance
Co. of Wellston. Before passage of the Act, that company
obtained working capital for its dealer finance activities by
borrowing against such paper from Bank of St. Louis. After
such borrowing was outlawed by the Act, the company continued to obtain its working capital from Bank of St. Louis,
except that now it sold the paper instead of borrowing against
it. The procedure was changed, but the net result remained the
same, except for diminution in the protection to the bank.

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LAW DEPARTMENT
may read as reserving by implication whatever rights
a holding company bank might otherwise have under
the law to make purchases without repurchase agreements, this does not preclude the "discount" provision
of Section 6(a)(4) from being construed as imposing
a limitation or restriction on such rights. Indeed,
such a construction is not only permissible, it is
entirely reasonable. It would both give full meaning
to "discount" in its accepted usage and at the same
time comport with the ends that Congress sought to
achieve, as revealed by the legislative history adverted
to above. Nor would it otherwise negate the implication said to be contained in Section 6(a)(3). This is
so because bank discounts, as commonly understood,
apply to financial transactions involving notes, bills of
exchange and the like, and not to a bank's acquisition
through purchase of other assets, securities or obligations, such as, for example, corporate stocks, bonds
or debentures.
The Applicant's argument, that the coupling of
the word "discount" with the words "loan" and "extension of credit" denotes an intent to have "discount" apply only to transactions that involve loans
made by a bank to an affiliate, is even less persuasive.
The words "loan" and "extension of credit" do not
have synonymous meanings,83 and it seems unlikely
that Congress would have inserted the word "discount", which, in ordinary usage has a broader meaning than "loan", had it merely intended that word to
cover the same ground and no more.34
For the reasons stated, I construe Section 6(a)(4) as
precluding dealings of the kind that are engaged in
with GCC banks by the five loan companies whose
cases have not previously been disposed of. I therefore find on that basis alone that the GCC bankrelated activities of the companies in question are not
such as to be a "proper incident" to the business of
banking or of managing or controlling banks, as conducted by GCC and its banking subsidiaries.
3. Added considerations. Even if Section 6(a) (4)
were construed as not quite reaching discounting
transactions involving purchases without recourse, this
would not leave unobstructed the Applicant's path to
divestiture exemption in the cases of Industrial Finance Co. of Wellston, General Contract Loan Co.,
and SIC Loan Co. The question would still remain
as to whether their relationship to the banking business conducted by GCC is such as to make divestiture
unnecessary to carry out the purposes of the Act.35
The divestment requirements of the Act, no less
33
The phrase "extension of credit" is broader than the word
"loan", and can include such things as guaranteeing someone
else's debt or issuing a letter of credit against which someone
can draw.
34
It is noteworthy that a n earlier bill t o provide for t h e control a n d regulation of b a n k holding companies—S. 1118, o n
which t h e Senate Banking and Currency Committee held hearings in 1953—contained a provision identical to the present
section 6 ( a ) , except for t h e omission of t h e word " d i s c o u n t "
in subdivision ( 4 ) thereof. During t h e hearings o n that bill the
story of t h e Bankers Discount situation, which h a d occurred
earlier that year, w a s first reported to t h e Senate Committee
by t h e then chairman of t h e Federal Deposit Insurance C o r poration. (See H . R e p . 609, p . 18, 84th Cong.) T h e fact that
later Senate bills inserted t h e word " d i s c o u n t " in subdivision
(4) of the self-dealing section m a y well suggest that t h e insertion was specifically and deliberately designed t o cover a situation, such as occurred in Bankers Discount, where t h e discount
by a b a n k of notes held by a n affiliated company is in t h e
form of a purchase without recourse rather t h a n in t h e form
of a loan.
35
This is entirely apart from t h e question of whether the
relationship is sufficiently substantial t o qualify as "closely
related", a point as t o which there m a y b e grave doubt, in the
case at least of S I C L o a n C o .




than the self-dealing prohibitions, were "designed to
remove the danger that a bank holding company
might misuse or abuse the resources of a bank it
controls in order to gain an advantage in the nonbanking activities it controls." (S. Rep. 1095, p. 14,
84th Cong.) Thus, the same public policy considerations that led Congress to condemn horizontal and
upstream lending and investments by a holding company bank would seem to apply as reasons for not
allowing a holding company to retain loan companies
that look to the resources of affiliated banks to provide needed working capital for their own lending or
dealer financing activities. The potential danger in
such a relationship of the "misuse or abuse [of] the
resources of a bank" is certainly no less because the
self-dealing may take a form that is deemed technically outside the reach of Section 6(a). Apart from
the "discount" question, therefore, I do not think it
can be said of the three loan companies now under
specific consideration that they sustain a relationship
to the Applicant and its banking subsidiaries of a kind
which would, in the words of the Board in the Transamerica case, "substantially escape the 'potential
sources of evil' against which the general prohibition
[of Section 4] was directed." This is an additional
reason for concluding that divestiture exemption of
such companies would not carry out the purposes of
the Act.36
The cases of Industrial Loan Co. and Baden Loan
Co. stand, I think, in a different posture. As found
above, these companies are operated for all practical
purposes as if they were loan departments of the
banks to which they are respectively attached. Were
it not for my conviction that the "discount" provision
of Section 6(a) (4) precludes a "proper incident" finding, I would have found that the situations presented
in the cases of Industrial Loan Co. and Baden Loan
Co. are such as to "substantially escape" the potential
sources of evil against which the Act's divestiture
provisions were aimed, and that their retention would
accord with the purposes of the Act.
4. In sum. For the reasons set forth above, denial
will be recommended of each of the exemption applications—docketed as BHC-8 to 17, inclusive—
covering the 10 direct loan company subsidiaries of
GCC.
IV. THE THREE INSURANCE COMPANIES

A. Their History and the Reasons for Their
Organization
1. Washington Fire and Marine Insurance Company, (a) Washington Fire and Marine Insurance
Co. (herein Washington) was organized by Industrial
Bank and Trust Co.—GCC's predecessor corporation
—in 1940.
(b) At about that time companies engaged in automobile dealer sales financing were experiencing great
difficulty in maintaining stable relationships with
established independent insurance carriers. During
the late 1930's, insurance carriers had suffered losses
on physical damage insurance coverage of financed
automobiles, and the trend of the major independent
86
As found above, the operations of these companies consist
in substantial part of acquiring consumer paper and funneling
such paper into Bank of St. Louis. The Board may also care
to consider whether such operations, and the possibility of their
later extension to other branches or areas, are consistent with
the purposes of the Act with regard to branch banking. No
opinion on that question is expressed here.

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FEDERAL RESERVE BULLETIN • MARCH 1958

insurance companies was to withdraw from that type
of coverage. As a result, the leading national sales
finance companies were led to organize their own insurance carriers. General Motors Acceptance Corporation, Commercial Credit Corporation, C.I.T. Corporation and Associate Investment Company, among
other major finance companies, organized their own
insurance carrier affiliates during the period from
1938 to 1940.
(c) Industrial Bank and Trust Co. was led to form
Washington for like reasons. Previously, Industrial
and its affiliated companies had effected the necessary
insurance arrangements on their automobile dealer
finance business through Clark C. Bland, an independent insurance agent in St. Louis specializing in
that type of insurance. Bland, however, began to
experience increasing difficulties in the placement of
such insurance. Finally, in 1939, Bland suggested
that Industrial ought to organize its own insurance
carrier as a matter of self-protection in the event that
outside connections could no longer be maintained.
Acting on Bland's suggestion, Industrial caused Washington to be organized as a Missouri insurance company in 1940.
(d) For some time after Washington was formed,
it was held mainly on a standby basis, and Industrial
continued to place much of its business and that of
its subsidiaries with outside insurance companies,
through Bland. But Industrial ran into recurrent
placement difficulties and also suffered several unsatisfactory experiences in the form of cancellations
and the like. In the course of time, Industrial, and
later GCC, turned more and more to Washington to
meet its own and its subsidiaries' insurance needs in
the automobile dealer financing aspect of its business.
Today, the GCC subsidiaries, both banking and nonbanking, use Washington and its affiliated companies
exclusively as their insurance connection for automobile physical damage insurance.
(e) During World War II, when the automobile
financing business came to a virtual standstill, Industrial moved into the field of financing the construction and sales of housing, mainly under FHA Title
II. Simultaneously, the scope of Washington's operations was expanded to include the writing of fire and
extended coverage insurance on dwellings. There is
evidence indicating that in Washington's early years,
the Industrial Bank and Trust Co., in order to draw
business to Washington, often insisted as a condition
to the making of certain types of real estate loans that
borrowers place their business with Washington. But
that practice appears to have been discontinued some
time ago. After the war Washington remained in the
fire insurance field, and to spread its risks, as well as
for other reasons, expanded the area of its operations.
Most of its premium income today is derived from
real estate fire and extended coverage insurance.
(f) All of Washington's capital stock is owned by
GCC. As of December 31, 1956, Washington had
total assets of $7,650,772, total liabilities of $5,219,816, paid-up capital of $1,000,000 and surplus of
$1,430,956. In 1956, Washington had a total net
income before income taxes of $383,607, of which
$68,056 represented net underwriting gains and the
balance represented investment gains and other
income. Its net income after taxes came to $248,234.
2. Midwestern Fire and Marine Insurance Company, (a) Midwestern Fire and Marine Insurance
Co. (herein Midwestern) was organized in 1939 by




Securities Investment Co. of St. Louis, then unaffiliated with GCC. SIC, like other finance companies
at the time, was prompted to organize its own insurance carrier because of the difficulty it was experiencing in maintaining insurance connections for its
automobile dealer finance business. Midwestern, after
it was formed, became the recipient of all SIC's
insurance business, and until World War II SIC was
Midwestern's only client. When the automobile financing business dried out during the war years, Midwestern, in order to put its assets to use, broadened
the area of its operations by entering the field of fire
and extended coverage insurance on real estate. With
the resumption of automobile sales at the end of the
war, Midwestern discontinued new writings of real
estate insurance, and again confined its writings to
automobile physical hazard insurance on automobiles
financed by SIC.
(b) In 1952, GCC obtained indirect control of
Midwestern by its acquisition of 94 per cent of the
stock of SIC. Later, SIC transferred to GCC its
stockholdings in Midwestern; the capital stock of
Midwestern was doubled; and the added shares were
purchased by an unaffiliated holding company, St.
Louis Insurance Co., which today shares equally with
GCC the stock ownership of Midwestern.
(c) As of December 31, 1956, Midwestern had
total assets of $4,960,607, total liabilities of $2,665,531; paid-up capital of $1,000,000 and surplus of
$1,295,075. In 1956, Midwestern had a total net
income before income taxes of $397,504, of which
$34,028 represented underwriting gains and the balance investment and other income. Its net income
after income taxes in 1956 was $264,338.
3. Insurance Company of St. Louis, (a) Insurance Co. of St. Louis37 was organized in 1950. Its
capital was contributed in equal shares by Washington and by St. Louis Fire and Marine Insurance Co.,
an operating subsidiary of St. Louis Fire Insurance
Co., which then, as now, was a joint participant with
Washington in a pooling arrangement to be hereinbelow more fully described. The new company was
formed for the purpose of expanding the operations
of the two other companies then in the pool. Through
the pyramiding device of employing existing assets
of the two companies to provide capital for the third,
it was possible, without the injection of new outside
capital, to show more aggregate assets that might be
used as a base to enlarge the aggregate amount of insurance all three companies might write. Moreover,
the addition of a new operating company made possible the appointment of additional agents to serve
areas already occupied by agents of the other two
companies, thus adding to the business-getting potential of the combined companies. It also provided the
insurance group with a company that might be qualified in certain states to write insurance at less than
manual rates, and thus meet the competition of mutuals and direct writers who write at downward deviations.38
(b) Insurance Co. of St. Louis now has 2,000
shares of $50 par value preferred stock and 9,000
shares of $100 par value common stock, the ownership of which is equally divided as aforesaid. The
company's financial statement as of December 31,
37
Not to be confused with St. Louis Insurance Co. or St.
Louis Fire and Marine Insurance Co.
38
At the present time Insurance Co. of St. Louis operates in
Missouri and in many other States at a downward deviation
from the manual rates.

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LAW DEPARTMENT
1956, shows total assets of $5,100,765, total liabilities of $2,658,892, paid-up capital of $1,000,000 and
surplus of $2,441,873. In 1956, it had a total net
income before taxes of $408,427, of which $34,028
represented underwriting gains and the balance investment and other income. Its net income after taxes
came to $279,428.
B. Operational Integration of the Three Companies
1. Washington, Midwestern, and Insurance Co. of
St. Louis, along with the GCC unaffiliated St. Louis
Fire and Marine Insurance Co., conduct their insurance activities as a single integrated joint enterprise.
All four companies are operated by an independent
company, General Insurors, Incorporated, under management contracts. None of the insurance companies
has any paid employees of its own.
2. Under the management contracts, General Insurors assumes supervisory control over all operations
of the companies, except those relating to investments.
It also furnishes all necessary executive and clerical
personnel, and all office space and equipment, essential for the companies' business operations. In consideration for its management services, General Insurors receives 6 per cent of the gross premiums.
The management contracts do not extend to dividend
policies or investments. Such matters are handled by
the officers and directors of the respective insurance
companies.
3. As among themselves, the four companies have
an inter-company pooling arrangement. All premiums
received, regardless of the company which writes the
policy on which a premium is paid, are placed in a
common fund and are credited to the four companies
in the following percentages:
St. Louis Fire and Marine Insurance Co.
Washington Fire and Marine Insurance Co.
Insurance Co. of St. Louis
Midwestern Fire and Marine Insurance Co.

33%
33%
16%
16%

Similarly, all underwriting expenses, loss payments,
and loss adjustment expenses are withdrawn from the
common fund and charged to the respective companies in the same proportions. Any residue is
similarly distributed. The four companies maintain
their separate identities only with respect to the management of their investment accounts, each handling
its own.
4. The four companies referred to above are known
as the St. Louis Insurance Group. Together, the
companies are now qualified to do business in 44
States—all but West Virginia, North Dakota, Rhode
Island and Massachusetts. Their activities are subject
to supervision by State regulatory authorities. Although authorized by their charters to write additional forms of insurance, the companies in the group
now confine their activities to the writing of automobile physical hazard insurance, trailer insurance,
and real estate fire and extended coverage insurance.
5. All of the activities of the companies here under
consideration are of a financial or insurance nature.
C. Arrangements between GCC and Its Affiliated
Insurance Companies Relating to Automobile
Physical Damage Insurance
1. Washington, Midwestern and Insurance Co. of
St. Louis each has a master policy outstanding in
favor of GCC and all of its subsidiary companies.
The master policies are tailored to satisfy the insurance needs of GCC banks and other subsidiaries in




their automobile lending and financing transactions,
and, more particularly, to facilitate the dealer finance
operations in which such banks and other subsidiaries
are engaged. The master policies are designed to
give the banks and other subsidiaries the maximum
insurance protection available to protect them from
losses resulting from collision, fire, theft and other
physical hazards.
2. Under the terms of the master policies, all automobiles covered by acquired dealer finance paper or
pledged by borrowers as security for loans are automatically insured—except in those situations where
insurance arrangements satisfactory to the lending or
financing subsidiary have otherwise been made by the
dealer or customer himself. The insurance on any
particular automobile goes into effect immediately
upon approval by the GCC subsidiary of the loan or
finance transaction, without any need for advance
notification or risk approval by the insurance companies. The purchaser or borrower receives a certificate of coverage when he executes the approved
finance or loan papers, and the automobile, if an
original purchase, is insured from the moment it
leaves the dealer's floor. The insurance provided for
is double interest, protecting not only the interest of
the purchaser or borrower, but also that of the affected GCC subsidiary separately, the latter's interest
remaining protected despite any change of ownership
in the automobile or any act or neglect that may
justify invalidation of the policy as to the purchaser
or borrower.39 Though the policies reserve to the insurer the right to cancel out the interest of the purchaser or borrower upon appropriate notice if he is
later found an unsuitable risk, they also provide that
such cancellation shall not affect the interest of the
GCC subsidiary, which, in the event of such cancellation, thereafter remains protected by single interest
coverage.40 The master policies also contain a socalled "conversion" clause which protects the interest
of the affected GCC subsidiary in the loan or dealer
paper from any loss resulting from the conversion,
secretion or embezzlement by the borrower or the
purchaser of the automobile securing the loan.
3. The GCC master policies are written on a retrospective basis. All premiums are pooled over a stipulated period of operation, called a Plan. The insurance companies receive for their own account 12.5 per
cent of the earned premiums, a percentage which is
calculated to cover roughly their actual expenses,
including the management fee to General Insurors.
taxes and miscellaneous expenses. The balance of
87.5 per cent is reserved to cover losses, adjustment
expenses and commissions. Any part of the 87.5 per
cent balance that is not paid out for losses, and adjustment expenses during the operational period of a
given plan is credited to the insurance agency companies as earned commissions. Although no final accounting for commissions can be made under a given
30
The usual policy issued to an individual insured does not
contain such a provision. It is, however, to be found in the
long form "loss payable clause" which a lienholder may insist
upon and usually obtain without added premium, but often only
after considerable follow-uo effort.
40
Such single interest added coverage is not obtainable on
an individual policy. However, independent insurance companies have available a so-called vendor's single interest policy
which provides such secondary protection to a lender on risks
insured by other carriers. Such a policy will only be written on
a volume basis to cover all risks in an appropriate class. GCC
has such a vendor's single interest policy with an unaffiliated
carrier, covering its interests on all automobile loans and
dealer paper where insurance is arranged by the purchasers or
borrowers under individual policies with outside carriers.

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FEDERAL RESERVE BULLETIN • MARCH 1958

plan until all policies written thereunder have run out
and the exact loss experience on that plan has been
determined, advance commissions, subject to later adjustment, may be paid to the insurance agency companies in the interim.
4. About 20 per cent of the automobile dealer finance business of the GCC banking and other subsidiaries is handled under so-called "dealer agent"
arrangements which provide for payment to the dealer
of a commission, usually fixed at a flat 25 per cent,
on all insurance premiums received on his finance
business.41 Where such a dealer agent plan is in
operation, the dealer's commission is paid by the
affiliated insurance agency, and if that agency eventually earns less in commissions on that dealer's business than the commissions paid out to the dealer, it
must bear the loss itself.
D. The Volume and Sources of Business Done
by the St. Louis Insurance Group
1. In general, (a) During 1956, the St. Louis Insurance Group had total gross premium receipts of
$10,192,132. The sources from which such premium
receipts were derived are broken down as follows:
Source
8 GCC banks
Other GCC affiliates
Unaffiliated sources
Total

Dollar
amount
707,451
2,093,325
7,391,356

Approx. percentage
of total
7
20
73

10,192,132

100

(b) Of the $707,451 derived from GCC bank
sources, $663,186, or approximately 6.5 per cent of
the total premium receipts, represented premiums for
physical damage insurance on automobiles securing
loans and dealer paper held by such banks, and the
balance of $44,265 represented premiums for fire
and extended insurance coverage on real estate under
mortgage to such banks. All of the $2,093,325 derived from GCC nonbanking affiliates represented
premiums on automobile physical hazard insurance.
Of the $7,391,356 from unaffiliated sources, over
$6,000,000 represented premiums on real property fire
and extended coverage insurance, and the balance
represented insurance on mobile homes and automobile physical damage insurance written on an individual selective basis through outside agents.
(c) The St. Louis Insurance Group's outside insurance business constitutes a profitable operation. The
same is true of the automobile physical damage and
real property fire insurance business that is derived
from personal and real estate loans made by the GCC
banking subsidiaries. The insurance derived from
the automobile dealer finance business of the GCC
subsidiaries does not, however, allow for a profit to
the insurance companies—as distinguished from the
insurance agency subsidiaries. This is because the
retrospective arrangement with GCC, discussed above,
permits the insurance companies a maximum retention of 12.5 per cent of earned premiums after losses
and adjustment expenses have been paid, a percentage
calculated to cover actual operating costs only.42
There is, however, some possibility of loss to the insurance companies on that class of business. For, if
the loss ratio (losses and adjustment expenses to
41

Such "dealer agent" arrangements are commonly offered by
the major finance companies.
42
The insurance agency subsidiaries, however, are in a position to earn substantial profits through retrospective commissions.




earned premiums) should exceed 87.5 per cent, the
insurance companies would be required themselves
to absorb the excess. According to the Applicant,
there has been uncertainty each year since the insurance companies began their operations as to whether
they would reach a break-even point on the automobile finance branch of their business. For several
years prior to 1956, the loss ratio on such business
hovered between 70 and 80 per cent, a percentage
sufficient to protect the insurance companies from a
direct loss on such business, but not enough to cover
the insurance agency companies in those cases where
a 25 per cent commission was paid to dealer agents.43
In 1956, an extraordinarily bad year for all automobile insurance companies, the loss ratio on new automobile finance business coming from the eight banks
was running at a rate of 90.7 per cent, and at a rate
of 92 per cent on such business coming from SIC.
This is to be contrasted to a loss ratio during the same
year of 57.63 per cent on the insurance companies'
nonfinance automobile policies, and 20.49 per cent on
their selectively written fire and extended coverage
insurance.
(d) The Applicant considers that the profitable
nonfinance lines, emanating mainly from outside
sources, are essential to it, if it is to continue to maintain its finance automobile physical damage insurance
on a sound and stable basis. It points out particularly that in years such as 1956, the profitable nonfinance lines serve to subsidize losses incurred on the
finance line. Without the other lines, it asserts, it
would be hazardous for the insurance companies to
maintain their present arrangements with GCC under
which the finance insurance line is carried for GCC's
banking and other subsidiaries.
2. Placements by GCC banks with affiliated insurance companies of fire and extended coverage insurance on property securing real estate loans held by
such banks. The accompanying table shows the extent to which the real estate loans of each of the
eight GCC banks, outstanding on December 31, 1956,
were covered by insurance placements with companies in the St. Louis Insurance Group:
INSURANCE COVERAGE OF PROPERTY SECURING REAL
ESTATE LOANS 1
December 31, 1956

Bank

Number of
accounts
owned and
serviced

Number of
accounts
serviced
for others

Number of
accounts owned
but serviced
by others

Total

Insured

Total

Insured

Total

Insured

1,243
St. Louis
546
Northwestern. . .
131
Jefferson-Gravois
723
Baden
785
Quincy
498
C. and I
407
Benton
446
Zeigler

643
24
28
8
120
161
0
0

2,975
224
0
37
0
1,630
0
0

1,608

1,288
553
1,255
688
75
4
0
83

86
8
0
0
0
0
0
2

0
0
0
645
0
0

1
Fire and extended coverage insurance placed with affiliated St.
Louis Insurance Group by eight GCC banks.
43
About 20 per cent of the automobile dealer accounts of
GCC subsidiaries are on a dealer agent plan. On business not
handled under a dealer agent arrangement the commission to
the insurance agency subsidiary would be represented by the
difference between the loss ratio and 87.5 per cent. In other
words, in the case of a 70 per cent loss ratio, the commission
would come to 17.5 per cent.

289

LAW DEPARTMENT
3. GCC placements of automobile physical damage insurance, (a) During 1956, the GCC subsidiaries, both banks and others, financed a total of
56,895 automobiles, both directly and through the
acquisition of dealer paper. Insurance covering
35,606 of the cars thus financed—or 63 per cent of
the total **—was placed with affiliated insurance companies. The following shows the distribution between
GCC banks and other GCC subsidiaries:
Number
Dealer paper loans
Personal loans
Total loans
Cars insured with affiliates:
Total cars
As a percentage of total number
of cars financed (rounded figures)

Other
Banks subsidiaries Total
17,802
29,481
47,283
4,459
5,153
9,612
22,261
34,634
56,895
9,331

26,275

35,606

42

76

63

(b) In the case of the banks, separate figures are
available as to each bank showing with respect to
both personal loans and dealer paper, the proportions of insurance placements made with affiliated
insurance carriers. They are set out in the accompanying table.
AUTO ACCOUNTS INSURED BY AFFILIATES FOR GCC
BANKS BY PERSONAL LOANS AND DEALER PAPER
Number insured by
affiliated companies
Bank

Number
requiring
insurance
Total

St. Louis:
Personal loans
Dealer paper
Purchased from GCC
Texarkana—
Personal loans
Dealer paper
Northwestern:
Personal loans
Dealer paper
Jefferson-Gravois:
Personal loans:
Dealer paper
Baden:
Personal loans
Dealer paper
Quincy:
Personal loans
Dealer paper
C. and I:
Personal loans
Dealer paper
Benton:
Personal loans
Dealer paper
Zeigler:
Personal loans
Dealer paper
Totals:
Personal loans
Dealer paper

As percentage of
number
requiring
insurance

791
5,284

392
3,310

49.56
62.64

337
1,961

221
1,611

65.58
82.14

608
1,264

210
236

34.53
18.67

457
1,799

414

23.21

493
31

22

70.97

273
2,958

53
1,240

19.41
41.95

1,024
4,013

188
1,364

18.35
33.98

340
344

76

22.09

136
148

13

8.78

4,459
17,802

1,063
8,268

23.83
46.54

44
In 1955, the percentage was 90 per cent. The decline in
1956 was explained as due to (1) more aggressive solicitation
by mutual companies of the more desirable insurance risks;
(2) the strengthened buyers' market in 1956 that made it more
difficult for dealers to control their customers' placement of
insurance; and (3) the fact that GCC in 1956 had fewer package deals which included insurance as part of the financing
arrangements.




E. Considerations Bearing on GCC's Need of Its
Insurance Company Subsidiaries as an Aid to the
Business Conducted by Its Banks
1. As found above, the activities of GCC's insurance company subsidiaries relate to activities of GCC
banks with regard to real estate loans, direct personal
loans secured by automobiles, and acquired automobile dealer paper.
2. GCC makes no claim that it requires an insurance company affiliate of its own for the efficient conduct by its banks of their real estate lending activities. The record is clear that the writing of fire and
extended coverage insurance on real property is a
profitable operation for insurance companies generally; that there is considerable competition among
them for that class of business; and that banks have
never experienced difficulty in arranging for such
insurance. GCC does claim, however, that the operation of its profitable fire and extended coverage line
is necessary to provide stability for, and at times to
subsidize, its dealer finance automobile physical insurance line.
3. As for personal loans secured by automobiles,
GCC also concedes that its banks do not necessarily
require an insurance affiliate of their own to enable
them to arrange the necessary insurance on such
loans. Individuals who are considered good credit
risks by banks are normally also considered good
insurance risks. The loss ratio on that type of risk
has usually been found satisfactory to insurance companies, and there has always been an active and
competitive market for business of that kind. But,
while conceding that an insurance company affiliation is not a sine qua non for direct automobile
lending, GCC urges that such an affiliation is nevertheless desirable as a means of facilitating its banks'
direct lending operations. To support that position,
GCC points out (1) that such an affiliation relieves a
borrower from himself making the necessary insurance
arrangements and thus expedites the making of a
loan; (2) that where insurance is placed with an
affiliated carrier under the GCC master policy the
bank is automatically assured of the maximum protection; and (3) that a borrower's insurance placement with an affiliated carrier results in the saying of
considerable clerical time that must otherwise be
devoted in following up the insurance to assure that
the borrower has effected proper insurance, that such
insurance is being properly renewed, and that the
bank's interest as lienholder is properly indicated and
protected by a sufficient loss payable clause.
4. With regard to the automobile dealer finance
phase of the banks' activities, GCC insists that an
insurance company affiliation is not only desirable
but is indispsensable. The facts upon which it relies
to support that contention are set out below.
5. In the automobile dealer sales finance field, it
has always been considered essential that the dealer
himself, or else the financing company, have an arrangement with an insurance company to provide the
necessary insurance protection on all dealer paper
acquired by the financing company from the automobile dealer. If such insurance arrangement is to
be considered satisfactory, it must provide for automatic coverage on each automobile sold under an
instalment payment contract, the coverage taking effect from the moment the sale is effected by the
dealer and without advance clearance by the insurance company. Provision must also be made for

290

FEDERAL RESERVE BULLETIN • MARCH 1958

separate coverage of the lienholder's interest regardless of any policy cancellation as to the owner of the
automobile. In addition, in order to acquire business
from certain dealers, it is sometimes necessary for the
financing company to be able to produce a commission on the insurance for the dealer.
6. Traditionally, in the sales finance field the responsibility to arrange for such insurance has fallen
upon the financing company in situations where
dealers have no insurance connections of their own.
GCC considers that its banks, in the acquisition of
automobile dealer paper, compete for business primarily with the national sales finance companies,
rather than with other banks.45 The leading national
automobile sales finance companies have their own
insurance company affiliates which they employ as
adjuncts to their dealer finance activities. Such companies offier dealers a complete package, including
inventory financing, customer financing and insurance
facilities. Their arrangements with dealers provide
not only for prompt clearance of credit while a customer is on the floor, but also for immediate and
automatic insurance coverage on automobiles sold
from the moment of delivery by the dealer. Moreover, as part of the consideration for the acquisition
of business, the national finance companies commonly make arrangements with dealers for dealer
participation in insurance commissions. Such arrangements are facilitated by reason of their insurance company affiliations.
7. GCC believes that its banks must be in a position to offer dealers comparable services and advantages if they are to compete successfully with the
national finance companies for dealer business. And
to do so, according to GCC, it is important for its
banks to have a stable insurance company connection
in which they can rely on a continuing basis to
provide the requisite type of coverage in all the areas
in which they operate. GCC emphasizes that such a
connection is now provided by its affiliated insurance
companies, and with it the means by which its banks
are in a position to arrange where necessary for the
payment to a dealer of a guarantee commission on
the insurance the dealers' business produces.
8. GCC explains the ability of several other large
banking institutions in the St. Louis area to obtain
substantial slices of available dealer business, though
they have no insurance affiliations of their own, as
due in large part to the fact that they finance dealers
who have access to outside companies or who have
been able to arrange for insurance on their own
particular business. But, it points out, the fact that
there are dealers for whom insurance is otherwise
available is only a partial answer to the problem of
banks, such as the GCC banks, that desire to maintain a dealer plan operation in competition with national sales finance companies. To do so, it says, such
banks must be in a position to offer the complete
package that the national finance companies offer—
including insurance; otherwise, their area of operations in the automobile dealer field must necessarily
be restricted to direct lending and to the solicitation
of business from those dealers only for whom independent companies may be willing to arrange finance
insurance.
45
As of December 1956, the national holdings by sales finance
companies of automobile dealer paper amounted to $7,283 million as contrasted to $3,579 million in automobile paper purchased by banks, a ratio of roughly 2 to 1. (Federal Reserve

BULLETIN, March 1957, p. 317.)




F. As to the Present Availability from Outside
Sources of the Requisite Insurance for
Automobile Dealer Business
1. Insurance policies of the kind required in automobile dealer financing—which automatically assure
coverage on all financed automobiles delivered—are
regarded by most of the leading insurance companies as an undesirable form of risk. Such finance
insurance, though carrying the same manual rates as
do individual policies written on a selective basis,
provide a greater hazard to the insuror. There are
a number of reasons for this. Under a finance policy,
the insuror is not in a position to screen applicants
in advance to eliminate undesirable risks, but must,
initially at least, accept all risks offered, the bad along
with the good. And even though it may later cancel
the policy if a post-audit reveals the insured to be an
undesirable risk, it must nevertheless continue to
provide coverage on the lender's mortgage interest
until the owner's note is paid. Moreover, many of the
better insurance risks are creamed off through individual policy arrangements made by customers,
while risks that are rejected by other companies
usually find their way back to the dealer. Also, an
individual who places his insurance through a dealer
ordinarily has less equity in the automobile than one
not financing, and so may be less inclined to take care
of his automobile. For these and other reasons,
risks covered by automobile finance policies are considered to be of a substandard average. Experience
has established that the ratio of losses to earned
premiums has always been substantially higher on
automobile dealer finance policies than on individual
automobile policies. According to one witness, the
loss ratio normally runs from 10 to 20 per cent
higher.
2. Reference has earlier been made to the insurance situation in the late 1930's that prompted the
formation of Washington and Midwestern, as well as
the formation of affiliated insurance carriers by the
leading national sales finance companies. The record
reflects that that situation has never been fully corrected. Though there have been periods of a relatively available market for the placement of automobile dealer finance insurance, there have also been
years when the market for this class of insurance has
been extremely limited. At present—according to the
evidence in this record—there is a dearth of independent insurance companies interested in insuring
all automobiles financed by a particular bank or
finance company—at least in the St. Louis area. Witnesses for the Applicant—including two of St. Louis'
leading insurance brokers—testified persuasively that
under present conditions it would be virtually impossible for GCC to establish and maintain with an
independent insurance company a fixed, stable and
continuous relationship, such as it now enjoys with
its own insurance company affiliates, which would
provide on a volume basis the requisite insurance
coverage for all automobile dealer accounts handled
by the GCC banking and other subsidiaries in all the
areas in which they now operate.
3. That is not to say, however, that automobile
finance insurance is altogether unavailable. The same
witnesses for GCC conceded that, while it would be
virtually impossible to make insurance arrangements
applicable to GCC's entire volume, it might nevertheless be possible, even under present conditions, for

LAW DEPARTMENT
GCC or its banks to arrange with independent insurance carriers, at least under a retrospective plan, for
finance insurance on a selective basis, selective as to
the areas or dealers involved.40 Moreover, the record shows that there are other banks in the areas
where the GCC banks operate—particularly in the
St. Louis area—that are able to handle substantial
amounts of automobile dealer business, and to have
such business covered by the necessary finance insurance even though they have no insurance company
affiliations of their own. Such insurance, however, is
usually arranged for by the dealer himself. General
Motors dealers, for example, are privileged to avail
themselves of the insurance facilities of Motors Insurance Co., even though they do not utilize the
finance services of General Motors Acceptance Corporation. In addition, insurance brokers are sometimes able to place a limited amount of finance insurance with independent companies by including
along with it a sufficient amount of other clearly
profitable lines to make the entire package attractive
to the insurance carrier. Also, there are a few insurance companies operating in the St. Louis area
that are willing to undertake finance business under
a retrospective plan, with a 20 to 25 per cent premium
retention to themselves, and with the amount of commissions made dependent upon the extent, if any, to
which the loss ratio as established by experience is
less than the balance.47 The independent companies
which will accept such insurance are, however,
usually selective as to the dealers whose business they
will take. Moreover. GCC regards a 20 to 25 per
cent premium retention as too high to allow a sufficient margin for payment to a dealer of a fixed commission on the insurance his business produces in the
cases where such payment is necessary in order to get
the dealer's business, and therefore unsatisfactory for
its purposes.
G. Analysis and Concluding Findings
as to the Insurance Companies
The record demonstrates clearly enough that there
exists a direct and specific functional relationship
between the three insurance companies here involved
and the business of banking as conducted by GCC
and its banking subsidiaries.48 For purposes of decision here, it is unnecessary to assess the substantiality
of that relationship in terms of quantitative or other
considerations.49 The more basic issue, as I see it in
the insurance company cases, is whether the relationship that exists, even if substantial, is of a kind that
would support findings (a) that the insurance com46

The quality of insurance risks on finance business is
measured in part by the locality of the dealer and the general
character of the customers with whom he does business.
47
By eliminating a flat commission, which normally would
come to about 25 to 30 per cent of the premiums, these companies are able to spread by that much the net to them of the
premiums available to cover losses. Most companies, however,
are unwilling to write insurance on a retrospective plan, for
such a plan, while producing a greater margin of safety to the
insurance company, also imposes a ceiling on their maximum
return.
48
In the context of the issues of this proceeding, Washington,
Midwestern a n d Insurance C o . of St. Louis—along with t h e
G C C unaffiliated St. Louis Fire and Marine Insurance C o . —
must be viewed as if they were a single company. I n the general conduct of their insurance operations they are so closely
integrated as t o be in effect a joint enterprise. Moreover,
vis a vis G C C and its banking subsidiaries, all share precisely
the same kind of relationship, a n d t o precisely the same degree.
49
T h e relevant data upon which such a n appraisal m a y b e
m a d e if deemed necessary by the Board is, however, set out
in the findings of fact made above.




291
panies are a "proper incident" to the business of managing or controlling banks, and (b) that it is unnecessary for the prohibitions of Section 4 of the Act to
apply in order to carry out the purposes of the Act.
Whatever my own views of Section 4(c)(6) might
have been before, I must now read Section 4(c)(6) in
the light of the interpretation given it by the Board
in its recent decision in the Transamerica case. As
the Board , explained in that decision, the phrases
"proper incident" and "purposes of this Act", as used
in Section 4(c)(6), must be considered both with reference to the meaning of the term "incident" as ordinarily understood and with a view to the potential
sources of evil which Congress considered inherent
in a corporate combination of banking and nonbanking companies and therefore sought to remove
through the general prohibitions of Section 4. The
Board said:
"This clear purpose of Section 4, namely, 'to remove
. . . potential . . . sources of evil', provides a helpful guide in applying the requirements of Section
4(c)(6). If a nonbanking business is a 'proper incident' to banking or to managing or controlling
banks, that is, if it properly and 'naturally appertains'
thereto, it is less likely to cause a bank to be influenced by the 'unnatural' or extraneous considerations
or temptations that are 'potential sources of evil'.
Hence it is more likely to accord with the purposes
of the Act.
"In other words, when Section 4(c)(6) refers to
'proper incident' and to 'the purposes of this Act', it
uses the terms jointly to limit the exemption of the
statute to situations which substantially escape the
'potential sources of evil' against which the general
prohibition was directed.'* (Emphasis supplied.)
In the Transamerica case, the Board recited some
of the potential evils considered by Congress to be
inherent in common corporate control of banks and
nonbanking organizations. One of them was:
". . . that a holding company, in extending credit,
might exert pressure on borrowers to do business
with the lending bank's affiliated corporations rather
than with their competitors, thus denying those borrowers an appropriate freedom of choice."
There are indications in the legislative history that
Congress' concern over the possibility of such pressure specifically extended, inter alia, to a situation
where a holding company bank might condition the
making of a loan upon the placement of insurance
with or through an affiliated company.50
so For example, during the House Banking Committee hearings, Representative Multer declared (Hearings on H. R. 2674,
p. 613, 84th Cong. 1st Sess.):
". . . we are going to say, I hope, that no banking company
should be engaged in the insurance business . . . that no bank
should be able to say to any depositor or any lender [sic],
inferentially or otherwise, 'We have an insurance company
upstairs. You better carry your insurance there'. . . . I think
they are two entirely seDarate and distinct businesses. It got
so bad in the State of New York that we had to write into
the law a provision that no mortgagee can insist that it will
place the insurance that is required by the mortgage, and they
cannot even insinuate today that it would be nice if you
carried your insurance with a particular company."
Further, during the Senate debates on the bill which ultimately
became law, Senator Humphrey, opposing Senator Capehart's
amendment that would have permitted bank holding companies
to retain previously acquired nonbanking assets, made the point
that the proposed amendment would retain the possibility of a
holding company subsidiary bank conditioning the making of
a loan upon placement of insurance with an affiliated insurance carrier, thereby giving that carrier a competitive advantage
over others. (Cong. Rec, Vol. 102, p. 6939.)

292

FEDERAL RESERVE BULLETIN • MARCH 1958

This case, unlike others perhaps, does not present a
situation where it can reasonably be said that a close
relationship tends to minimize the danger of temptations arising that are "potential sources of evil". The
kind of relationship that exists between the GCC insurance companies and the GCC banks does not
"substantially escape"—on the contrary it tends to
augment—the danger of tie-in arrangements in lending transactions that would deny borrowers an appropriate freedom of choice. And this is precisely
because the insurance companies sell insurance of a
kind that borrowers require in connection with bank
credit transactions. Through their power to grant or
withhold the extension of credit, holding company
banks, like the GCC banking subsidiaries, are in a
strategic position to control the flow of required insurance to affiliated companies, thereby both restricting their borrowers' freedom of choice and providing
their affiliates with a competitive advantage. In the
case of the GCC banks, this is true not only with
regard to mortgage loans and personal loans secured
by automobiles, but with regard to automobile dealer
sales financing as well. Although conditions today
may be such as to make the packaging of insurance
and financing usually advantageous to the dealer as
well as the banks, this may not always be so. The
danger remains that situations may arise where dealers
may be forced to accept insurance they may prefer to
obtain elsewhere in order to obtain needed bank
financing.51
The fact that present GCC management may be
above such conduct is beside the point. GCC's common equity ownership of both the banks and the insurance companies, along with GCC's interest in gaining a profit from each, nevertheless creates a situation
which Congress considered might lead to evil and
should be removed. That this judgment was not an
irrational one is reflected by an admission contained
in this very record, that Bank of St. Louis in the past
had followed a practice of conditioning the making
of certain types of real estate loans upon the borrowers insuring the property with an affiliated company.
The record shows, to be sure, that that practice was
discontinued some years ago. But, as the Board
pointed out in Transamerica, the presence or absence
of actual evil is immaterial; the purpose of the Act
is "to remove what Congress considered to be potential if not actual sources of evil".
As the record shows, the activities of the three insurance companies in question are not confined to the
handling of business generated by GCC; nor, for that
matter, to the handling of bank-connected insurance
generally.52 The companies within the lines they write
are engaged in a general insurance business. They
now write insurance in 44 States, and theirs is a
growing business. The amount of business they do for
GCC banks accounts for only about 7 per cent of
their total premium volume. For all GCC subsidiaries
it amounts to about 27 per cent.
51
It is no answer to say that national finance companies, with
which GCC banks compete, are in a position to do the same
thing. The Act does not reach national sales finance companies; it does reach holding company banks. It must further
be remembered, as the Board pointed out in Transamerica, that
"banking is a unique business with unique economic power and
responsibilities", and for that reason must be controlled by
higher standards of conduct.
52
That circumstance alone, however, is not a basis for the
determination made in this case. The Applicant argues that
Section 4(c)(6) does not necessarily require all the activities
of an insurance company to be closely related. Though that be
conceded, the result reached here would be the same.




It is to be doubted that a business of the kind and
breadth engaged in by the companies here may appropriately be classified as an "incident" to the business of banking, let alone a "proper incident". As
was stated by the Board in Transamerica:
". . . both legal and nonlegal dictionaries show that
the term 'incident' is used to describe something that
'usually' or 'naturally' 'depends upon', 'appertains to'
or 'follows' another more important thing."
Certainly it is difficult to say of the insurance companies here that their business is of a kind that
"usually" or "naturally" "depends upon", "follows"
or "appertains to" the business of banking as a "more
important thing". It is true that banks frequently require insurance coverage such as is supplied by the
companies here to protect the security furnished for
loans. But that is not the only or even the primary
purpose for which such insurance is written. From
the fact that banks utilize such insurance, it does not
follow that the business of writing such insurance is
an "incident" to the business of banking. The business of writing fire and automobile insurance and the
business of banking have always been regarded as entirely separate and independent businesses.
In the respects just noted, the situation is entirely
different from the examples given in the Senate Report
to illustrate the type of operations Congress thought
the exemption provisions of Section 4(c)(6) ought to
reach—"the operation of a credit life insurance program in connection with bank loans" or "the operation
of an insurance program [to] retire the outstanding
balance of a [bank held] mortgage upon the death of
a mortgagor."53 Such operations, usually and characteristically, are tied in with lending transactions such
as banks engage in; outside the field of lending or
credit there is no occasion for their use. It is also
to be noted that credit life insurance, as a rule, is not
solicited or written on an individual application basis
but is offered by the lender, usually under a master
policy covering all loans of a class. The writing of
such insurance by a bank affiliate would not therefore
place a borrower in a position where his freedom of
choice might be restricted in the selection of an
insuror.
For the reasons stated above, I reach the conclusion
that the business conducted by the insurance companies is not such, either in their own right or in
their relationship to GCC or its banking subsidiaries,
as to be a "proper incident" to the "business of banking or of managing or controlling banks" and "as to
make it unnecessary for the prohibitions [of Section 4]
to apply in order to carry out the purposes of this Act".
In reaching this conclusion, I have not overlooked
the various arguments made by the Applicant. They
are in the main reflected by the factual recitals made
above, and need not be repeated here. The Applicant has indeed made a strong showing that the insurance companies are important, and perhaps even
essential, to the GCC banks if they are to continue
in the future, as they have in the past, to compete
with national sales finance companies on equal terms
for automobile dealer finance business, particularly
for the business of dealers who do not have insurance
connections of their own. The Applicant has also
shown that in other respects as well the insurance
companies, while not indispensable to the banks'
ss S. Rep. 1095, p. 13, 84th Cong.

LAW DEPARTMENT
operations, perform a useful service to the banks by
providing their customers with types of insurance
that are required in connection with the banks' lending activities.
The considerations just mentioned, and others like
them, are undoubtedly material to the question of
whether the insurance companies sustain a relationship to the GCC banks so sufficiently substantial as
to be regarded as a close one. But they do not
squarely meet the precise issue on which the insurance company cases are here being decided—whether
the relationship is of a kind that satisfies the "proper
incident" and "purposes of the Act" requirements of
Section 4(c)(6). To satisfy such requirements it is
not enough to show, as the Applicant has done here,
that a particular bank holding company has in the
past so geared the operations of its banking subsidiaries to the operations of nonbanking subsidiaries
as to derive therefrom substantial benefits that may
be lost if the corporate relationship is severed. It
must also be shown that the relationship previously
established is allowable under the existing statute as
one that would not do violence to the purposes of the
Act.
The benefits flowing from the insurance company
affiliation to which the Applicant points, and which
it fears may be lost by disaffiliation, are benefits
which the Applicant was able to acquire only by
utilizing the holding company device to form insurance company alliances that allowed it to reach into
fields and to gain advantages not open to banks generally. What the Applicant did was, of course, unobjectionable in the absence of a governing law. But
a regulatory statute has since intervened. In determining now whether retention of the nonbanking
alliances so formed would be in harmony with the
Act, primary consideration must be given to the
statutory objectives. Where, as here, the nonbanking
relationship, no matter how close or how beneficial
to the interests of the banking subsidiaries it may be,
is not such as to "substantially escape" the potential
sources of evil against which the Section 4 prohibitions were aimed, the relationship may not, consistently with the will of Congress, be found either
a "proper incident" to the business of banking, or one
that would make divestiture unnecessary "to carry
out the purposes of this Act".
If carrying out the purposes of this Act may cause
the Applicant or its banking subsidiaries to lose some
of the advantages which they now derive from the
presence of the insurance companies in their holding
company structure, that is a matter beyond the control of the Board. The statute is its own measure
of what it permits and what it forbids. And it makes
no provision for "hardship" cases. If accommodation is to be made, the Applicant must accommodate
its business to the statute. The Board is powerless
to accommodate the statute to fit the Applicant's special circumstances.
Accordingly, denial will be recommended of the
exemption applications, docketed as BHC-6, covering Washington Fire and Marine Insurance Co., Insurance Co. of St. Louis, and Midwestern Fire and
Marine Insurance Co.
V. THE INSURANCE AGENCY COMPANIES

A. General Methods of Operation
1. GCC has nine wholly owned direct insurance
agency subsidiaries involved in this proceeding. Their




293
activities are wholly of an insurance nature. They
act, at least nominally, in the placement of insurance
generated by the lending and automobile dealer financing activities of other GCC subsidiaries. The
business of four of the insurance agencies—Quincy
Insurance Agency, Northwestern Insurance Agency,
Jefferson-Gravois Insurance Agency, and Reid-Kruse
—is related entirely to the handling of insurance
placements in connection with loans or dealer paper
made or acquired by the GCC banking subsidiaries
to which they are respectively attached. Four others
—St. Louis-Washington Insurance Agency, Apex Insurance Agency, Springfield Insurance Agency, and
Sterick Insurance Agency—are engaged mainly (to
the extent of 80 per cent or more of the total business of each) in placing insurance in connection with
loans or dealer paper made or acquired by GCC
banking subsidiaries, but also act as agents in the
placement of insurance required in connection with
loans made by one or more of GCC's subsidiary loan
companies. The remaining company—Texarkana
Agency—acts as the insurance agent on insurance
placements connected with the loans and dealer paper
which GCC itself makes or acquires at its Texarkana
office and which it later sells to Bank of St. Louis.
None of the insurance agency companies, except possibly Sterick, actively solicits any insurance business
from the public at large.
2. With the exception of Sterick Insurance Agency,
none of these insurance agency companies has an
office or employees of its own.5* Operational details
relating to the physical placement of insurance are
handled by the bank or loan company employees who
arrange or administer the lending or financing transactions. All books and records of the various insurance agencies—save for Sterick, which does its own
bookkeeping—are maintained by the personnel of
Bank of St. Louis.
3. The most substantial part of the premium volume handled by the insurance agency affiliates is for
automobile physical damage insurance on dealer
financed cars. As earlier found, such insurance is
placed with GCC-affiliated insurance companies on
a retrospective arrangement under which the commissions to the insurance agency companies are made
dependent upon the loss ratio that may be developed
as a result of actual experience under the particular
plan in effect for a given period. About 20 per cent
of the automobile dealer business is handled on a
dealer-agent plan, with the dealer allowed a commission, usually fixed at a flat 25 per cent, on all insurance premiums his business produces. Where dealeragent arrangements are made by a GCC bank, the
insurance agency attached to that bank pays to the
dealer-agent the amount of commissions the bank has
agreed upon—the insurance agency being entirely
subservient to the bank's wishes in the matter. The
insurance agency, however, remains bound under its
own retrospective arrangements with the insurance
companies. If the commission paid to the dealeragent is a fixed one and proves to be greater than the
commission ultimately earned on that business by the
agency under the retrospective plan, the insurance
agency is required itself to stand the loss. It may
not look for reimbursement to the financing bank,
which is completely insulated from any liability for
54
Sterick has one office which adjoins Commercial and
Industrial Bank in the lobby of the Sterick Building in Memphis, Tenn. Sterick also has two paid employees.

294

FEDERAL RESERVE BULLETIN • MARCH 1958

losses sustained as a result of unfavorable insurance
experience. According to the Applicant's witnesses,
if the banks were forced to deal with outside insurance
agents, they would be disabled from controlling insurance commissions and would therefore be placed
at a disadvantage in competing for automobile dealer
consumer credit paper with the national sales finance
companies which have their own insurance companies.
4. A somewhat less substantial but nevertheless
significant part of the premium volume handled by
the insurance agency affiliates comes from automobile
physical damage and real property hazard insurance
required in connection with the Applicant's personal
loan and real estate lending and servicing activities.
Placement details with regard to such insurance are
usually handled by the loan officers who arrange the
loans. GCC considers that by providing a medium
under which bank employees are enabled to handle
insurance placements, the insurance agency companies
furnish a useful and beneficial service to the banks in
facilitating and expediting the making of loans and
in avoiding clerical follow-up details.
5. There is set out below additional details with
respect to each insurance agency subsidiary, showing
the sources of its business, the volume and kind of
business handled by it, and where it places its business.
(a) Apex Insurance Agency, Inc. Apex, located
at Bank of St. Louis, acts as agent in placing automobile physical damage insurance required in connection with the automobile dealer financing activities of Bank of St. Louis and General Contract Loan
Co. In 1956, its premium volume on such business
—all placed with affiliated insurance companies—
amounted to $310,525, of which 97.4 per cent
stemmed from Bank of St. Louis and 2.6 per cent
from General Contract Loan Co. The only other
business handled by Apex in 1956 consisted of the
placement with unaffiliated insurance companies of a
relatively small amount of credit life insurance in the
premium amount of $5,974. During 1956, Apex
received commissions totaling $65,351. Its net earnings after taxes came to $36,330.
(b) St. Louis-Washington Insurance Agency, Inc.
This agency, also located at Bank of St. Louis, acts
as agent on insurance placements required in connection with personal and real estate loans made by
Bank of St. Louis, Industrial Loan Co., Industrial
Finance Co. of Wellston and SIC Loan Co. During
1956, 46.31 per cent of its total premium volume
came from Bank of St. Louis; 40.47 per cent from
Industrial Loan Co.; 6.57 per cent from Industrial
Finance Co. of Wellston and 6.65 per cent from SIC
Loan Co. Its total premium volume in 1956
amounted to $80,624, of which $31,905 was for automobile physical damage insurance; $37,224 for real
estate hazard insurance; $11,179 for credit life insurance; $201.16 for automobile public liability and
property damage; and $115 for "Tripmaster" insurance. All of the automobile physical damage insurance and 83.71 per cent of the real estate hazard
insurance was placed with affiliated carriers. The
rest was placed with unaffiliated carriers. In 1956,
the company received $25,233 in commissions. Its
net earnings after taxes came to $17,178.
(c) Jefferson-Gravois Insurance Company, Inc.
This company handles the placement of insurance
originating through Jefferson-Gravois Bank, St. Louis,
to which it is attached. Automobile physical damage
insurance relating to dealer paper is placed by this
agency with affiliated companies; all other policies,




including automobile physical damage insurance in
connection with personal loans are placed with unaffiliated companies. During 1956, the agency handled a total premium volume of $103,147. Most of
this—$88,691—represented automobile physical damage insurance premiums, 80.47 per cent of this on
placements with affiliated insurance companies, presumably in connection with automobile dealer business. The remaining items consisted of $9,331 as
premiums on real estate hazard insurance and $5,125
as premiums on credit life insurance. The company
received commissions totaling $12,441 and earned
after taxes $8,660.
(d) Reid-Kruse, Inc. This agency is attached to
Baden Bank, St. Louis, from which all its placement
business originates. In 1956, the agency had a total
premium volume of $41,254. Of that amount, $16,510 was for automobile physical damage insurance,
11.11 per cent of which was placed with affiliated
companies and 88.89 per cent with unaffiliated companies. The balance, all in insurance placed with
unaffiliated companies, consisted of real estate insurance ($20,790), credit life insurance ($3,402) and
"other insurance" ($553). In 1956, the agency received commissions totaling $17,362 and had net
earnings after taxes of $12,036.
(e) Northwestern Insurance Agency, Inc. This
agency is attached to, and handles the business originating at Northwestern Bank and Trust Co. Its
premium volume in 1956 was $65,999, of which by
far the greater part—$59,855—was for automobile
physical damage insurance, all of it placed with
affiliated companies. The rest—all placed with outside companies—consisted of real estate insurance
($3,942), credit life insurance ($1,072), boat insurance ($746) and automobile public liability and property damage insurance ($385). The agency received
total commissions amounting to $5,329. Its net earnings after taxes came to $3,401.
(/) Quincy Insurance Agency, Inc. This agency is
located at the premises of Illinois State Bank of
Quincy, and confines its activities to the placement
of automobile physical damage insurance with affiliated companies. Its premium volume in 1956
came to $110,939; its commissions to $14,075, and its
net earnings after taxes to $9,594.
(g) Springfield Insurance Agency, Inc. The business of this agency flows from four sources—Illinois
State Bank of Quincy (29.84 per cent in 1956); Bank
of Benton (35.56 per cent); The Bank of Zeigler
(16.33 per cent); and Quincy Union Finance Co.
(18.27 per cent). Its total premium volume in 1956
was $16,665, of which $9,461 was for automobile
physical damage insurance placed with affiliated companies, and $7,204 for credit life insurance placed
with outside companies. It received $17,738 in commissions. Its net earnings after taxes came to
$11,690.
(h) Sterick Insurance Agency, Inc. As noted above,
this is the only agency with its own separate place of
business and employees. Most of the insurance business it handles (86.02 per cent in 1956) originates in
Commercial and Industrial Bank, but it also handles
insurance business originating through another Tennessee GCC subsidiary—General Contract Loan
Brokers. During 1956, Sterick's total premium volume was $210,954. This included $167,238 for automobile physical damage insurance (all placed with
affiliated companies), $21,083 for real estate insurance (62.16 per cent of which was placed with

295

LAW DEPARTMENT
affiliated companies), $7,980 for public liability and
property damage insurance placed with outside companies; and $14,653 for credit life insurance, also
placed with outside companies. In 1956, Sterick
received $55,015 in commissions. It earned after
taxes $26,176.
(i) Texarkana Agency, Inc. This agency handles
the insurance originating at the Texarkana Branch
of GCC only. During 1956, its premium volume
was $98,978, all for automobile physical damage insurance placed with affiliated companies. It received
$13,737 in commissions and had net earnings after
taxes of $9,182.
B. Analysis and Concluding Findings as to the Insurance Agency Companies
1. The factual findings made above establish
clearly enough that—except for Texarkana which
will be considered separately below—each of the
insurance agency subsidiaries here involved sustains
a direct and substantial functional relationship to
one or more of the GCC banking subsidiaries. The
real issue in these cases is not whether the insurance
agency companies are operated as adjuncts to the
business conducted by the GCC banks—they clearly
are—but whether what they do is such as to (1)
be a "proper incident" to the "business of banking
or of managing and controlling banks," and (2)
"make it unnecessary for the prohibitions of [Section
4] to apply in order to carry out the purposes of this
Act."
On that issue, much of what was said in the
analysis of the insurance company cases applies
equally here, and the controlling principles are substantially the same. The operation of insurance
agencies in conjunction with bank lending activities,
certainly no less than the operation of insurance
companies, and probably to an even greater degree,
creates a source of potential evil the Act was designed
to remove—namely, "that a holding company, in
extending credit, might exert pressure on borrowers
to do business with the lending bank's affiliated corporations rather than with their competitors, thus
denying 55
those borrowers an appropriate freedom of
choice."
Thus, it cannot be said of the insurance
agency cases, any more than of the insurance company cases, that they present "situations which substantially escape the 'potential sources of evil' against
which the general prohibitions [of Section 4] was
directed."56 Consequently, and for reasons more
fully explicated in the section above dealing with
insurance companies, I conclude that the relationship
that exists between the insurance agency companies
and the banks, though close, is not such as to be a
"proper incident" to the business of banking or of
bank management or control, nor such as to make
it unnecessary for the divestiture provisions of the
Act to apply in order to carry out the purposes of
the Act.
2. Though what has just been said is dispositive
of the cases, there are other factors present in the
insurance agency cases that the Board may care to
consider in determining whether the "proper incident"
and "statutory purposes" requirements of Section
4(c)(6) have been met.
The insurance agency companies serve GCC banks
55
Transamerica case, See Federal Reserve BULLETIN, September 1955, p. 1016.
™Ibid., p. 1017.




located in the States of Illinois, Tennessee and Missouri. Illinois has a specific statutory prohibition
against banks acting as insurance agents. It provides
that no bank or trust company—except a national
bank in cities of less than 5,000—shall be licensed to
act as an insurance agent, and extends that prohibition
to "any subsidiary, affiliate, officer or employee" contributing, directly or indirectly, insurance commissions
or fees to a bank or trust company.57 In Tennessee,
banks may not directly act as insurance agents, both
because they are unauthorized to do so under their
corporate powers, and because of a statutory provision
prohibiting the 58
licensing of any corporation as an
insurance agent. Tennessee, moreover, according to
testimony in the record, will not allow any insurance
to be written on bank premises; hence Sterick Insurance Agency's separate but adjacent quarters in the
building where Commercial and Industrial Bank is
housed. In Missouri, according to an unpublished
1936 Missouri Attorney General's Opinion, in evidence, 59trust companies and banks having trust
powers have the corporate power to act as insurance agents. As a practical matter, however, this is
of little aid to them, because, as appears from evidence, the Insurance Commissioner will not issue an
agent's license to any bank or trust company, or,
for that matter, to any corporation.60
What consideration, if any, should be given to the
restrictions thus imposed on banks? The Applicant
argues—I think correctly—that Congress did not
intend to limit the exemption of Section 4(c)(6) to
such companies only as engaged in activities that
banks themselves could directly engage in. Therefore, the fact alone that Tennessee and Illinois banks
are without corporate power themselves to act as
insurance agents would appear to be of no particular
materiality here. Nor do I think it has any material
bearing on the question here that banks in a given
State may be denied insurance agent's licenses under
a State law prohibiting the granting of such licenses
to corporations generally. A more difficult problem
is presented, however, where, as in Illinois and, perhaps, also in Tennessee, a State statute or regulation
appears to declare a public policy against commingling bank lending and insurance activities—and
particularly so, where, as here, the banks involved
are State banks. Should the Board in such circumstances overlook State policy in determining whether
it is a "proper incident" to banking to operate an
insurance agency company for all practical purposes
as if it were a bank department?
The Applicant contends that State law should be
ignored. It argues that the Act, as a Federal law,
should be applied uniformity in each State so as not
to require divestment in one State while allowing
retention in another where the same kind of company
and the same type of relationship is involved. The
57
5s

73 Smith Hurd 111. Stats. Anno., Sec. 1065-53.
Tenn. Code Anno., Sec. 56-704. GCC's Tennessee insurance agency company as well as all other GCC insurance
agency subsidiaries involved in this proceeding act through
licensed individuals who are officers or employees of other
GCC subsidiaries.
59
The GCC banks in Missouri have such trust powers.
60
There is some generalized and indefinite testimony that
there are small banks, particularly in rural areas, that nevertheless operate insurance departments, by acting through officers or employees who are licensed insurance agents. How extensive that practice is does not clearly appear in the record.
Walter E. Burtelow, GCC's executive vice president, testified
that, except for small country banks, he knew of no banks in
any of the three States here involved that operated such departments in conjunction with their banking business.

296

FEDERAL RESERVE BULLETIN • MARCH 1958

correct test, according to the Applicant, should be
whether a particular activity is a "proper incident"
to the business of banking generally, and this should
be based upon a uniform Federal policy, with the
application of State law left as a matter for State
concern.
There is much to be said for the position stated
by the Applicant. But it leaves unanswered the question of what standards the Board should apply in
determining whether it should be deemed appropriate
and fitting, as a matter of Federal policy, for a bank
holding company to integrate banking and insurance
agency operations. If the Board is to shape such
a Federal policy without reference to the particular
statute it is administering here, it would seem appropriate to consider the attitude of other Federal agencies with an interest in the matter, and, perhaps, the
over-all attitude of States as well.61 My own view,
however, is that the Board must look first to the
statute it is administering, and to the purposes of that
statute. That, of course, brings us back full circle
to where we began. The Board has stated that the
Act is aimed in part at removing as a potential source
of evil corporate structures that might tend to influence banks in extending credit to bring pressure on
borrowers to do business with affiliates rather than
with their competitors, thereby denying borrowers an
appropriate freedom of choice. Since a bank-insurance agency corporate relationship provides such a
potential source of evil, that appears reason enough
for declaring that within the framework of this statute
a holding company's operation of an insurance agency
must be found an improper incident to the business
of banking.
3. One case remains to be considered—that of
Texarkana Agency. That agency is attached to the
single branch office that GCC itself operates at
Texarkana, Texas. At that branch GCC engages in
a small loan and dealer sales finance business. Such
a business is not—within the meaning of Section
4(a)(2)—"that of banking or of managing or controlling banks or of furnishing services to or of performing services for any bank. . . . " Consequently,
GCC will be obliged by virtue of one of the prohibitions of Section 4(a)(2) to discontinue its direct nonbanking branch operation at Texarkana within the
period prescribed by the statute. Retention of Texarkana Agency may no more be justified under the
statute than retention of the business operation to
which it is connected.
Even with that consideration aside, however, the
Texarkana Agency, in my view, would still not meet
the statutory requirements for exemption under Section 4(c)(6). The Applicant would support a "closely
related" determination on the ground that all of the
61
The Applicant seems to suggest that established Federal
policy may be found in the National Bank Act which allows
national banks in populated areas of less than 5,000 to act as
insurance agents (U. S. C, Title 12, Sec. 92). But that is an
argument that cuts both ways. For it may just as readily be
inferred that the denial of that privilege to national banks in
cities with a population over 5,000 reflects that Federal policy
is opposed to mixing banking and insurance functions as a
general rule, save in limited circumstances where special considerations warrant a departure from that rule.




loans and dealer paper GCC acquires at Texarkana
are ultimately sold to Bank of St. Louis at a discount
and without recourse or repurchase agreement. From
this, it argues that the Board should view the GCC
Texarkana loan and finance operations as an incident
to the banking business conducted by Bank of St.
Louis—and the related activities of Texarkana Agency
as derivatively so. But even if that argument were
accepted, the statutory requirements for exemption
under Section 4(c)(6), as they have been interpreted
and applied above, would not be met. The Applicant's case would still fall short of the mark, both
for reasons stated above in connection with the other
insurance agency company cases, and for the reasons
also stated above in connection with the cases of the
GCC loan company subsidiaries which are engaged
in the origination of consumer credit paper for sale
to Bank of St. Louis.
4. For the reasons above stated, I conclude that a
closely related determination is not supported by the
record in the cases of the nine insurance agency direct
subsidiaries of GCC named in cases docketed as
BHC 19 through 27. Accordingly, dismissal will be
recommended of the exemption applications in those
cases.
Upon the basis of the foregoing findings of fact,
and upon the entire record in the case, I make the
following:
Conclusions of Law
1. All the activities of each of the nonbanking subsidiaries named in the cases docketed as BHC-4
through 17, and 19 through 27,02 are of a financial,
fiduciary or insurance nature.
2. The aforesaid companies are not—within the
meaning of Section 4(c)(6) of the Act—so closely
related to the business of banking or of managing
or controlling banks as to be a proper incident thereto
and as to make it unnecessary for prohibitions of Section 4(a)(2) of the Act to apply in order to carry out
the purposes of the Act.
Recommendations
It is recommended that the Board of Governors of
the Federal Reserve System:
1. Enter an order determining the issues in this
consolidated proceeding in accordance with the findings of fact and conclusions made above.
2. Deny the request of General Contract Corporation in each of the cases docketed as BHC-4 through
17 and 19 through 27 for an order under Section
4(c)(6) of the Act determining that the shares of the
nonbanking company named therein are exempt from
application of the prohibitions of Section 4(a)(2) of
the Act.
Dated at Washington, D. C , this 12th day of September 1957.
(Signed) ARTHUR LEFF,
Hearing Examiner.
63
The names of the companies are set forth in the Statement
of the Case, above [p. 274].




APPENDIX A
GENERAL CONTRACT CORPORATION

2/12/57

(a) (1) BANK OF ST. LOUI
(c) (2) NORTHWESTERN BANK AND TRUST CO., ST. LOUi:
(d) (3) JEFFERSON-GRAVOIS BANK, ST. LOUIS
(4) BANK OF BENTON ( I L L )

COMMERCIAL AND INDUSTRIAL BANK, MEMPHIS
(5) ILLINOIS STATE BANK OF QUINCY (f)
(6) BADEN BANK, ST. LOUIS (b)
THE BANK OF ZEIGLER (ILL.)

(8)
SECURITIES
INVESTMENT
CO. OF ST.
LOUIS (DEL.)

(h)

INDUSTRIAL FINANCE CO. OF WELLSTON
(b) BADEN LOAN CO.
SPRINGFIELD UNION FINANCE G
QUINCY UNION FINANCE G
(a) INDUSTRIAL LOAN CO.
(g) GENERAL CONTRACT LOAN CO.
(g) GENERAL CONTRACT LOAN CO. (LA.)
GENERAL LOAN CO. (ARK.)GENERAL CONTRACT LOAN BROKERS (MISS.)
(g) SIC LOAN CO..

(g)

(9)

ECURITIES CREDIT CO. (MO.) (g)
SECURITIES LOAN CO. (TENN.)
SECURITIES CREDIT CO. (FLA.) (g)
BROADWAY INSURANCE AGENCY (g)
SECURITIES INSURANCE AGENCY (ILL.) (g)
INVESTMENT INSURANCE AGENCY (ARK.) (g)
RAIGHEAD INSURANCE AGENCY (ARK.) (g)
PALAFOX INSURANCE AGENCY (FLA.) (g)
'AVIDSON INSURANCE AGENCY (TENN.) (g)

PEX INSURANCE AGENCY (a)
IEFFERSON-GRAVOIS INSURANCE AGENCY (d)
SPRINGFIELD INSURANCE AGENCY (ILL.)
EID-KRUSE (b)
T. LOUIS -WASHINGTON INSURANCE AGENCY (a)
PULASKI COUNTY INSURANCE AGENCY (ARK.)
QUINCY INSURANCE AGENCY ( I L L ) (f)
STERICK INSURANCE AGENCY (TENN.) (•)
TEXARKANA AGENCY (TEX.)

MIDWESTERN FIRE AND MARINE INS. CO.
WASHINGTON FIRE AND MARINE INS. CO.

(10) INSURANCE CO. OF ST. LOUIS ^ ^ ^ 7

NORTHWESTERN INSURANCE AGENCY (c)
(11) INVESTMENT CO. OF
ST. LOUIS

COMPANIES ARE INCORPORATED IN MISSOURI UNLESS OTHERWISE INDICATED IN PARENTHESES
EXCEPT WHERE INDICATED BELOW. COMMON STOCK
OWNERSHIP IN INDICATED CORPORATIONS IS 100 %

(a) Operates at Bank of St. Louis.
GCC has one direct operating branch office at Texarkana, Tex.
(b)

(1)
(2)
(3)
(4)
(5)
(6)

99.95%
92.48%
97.33%
94.86%
87.73%
87.04%

(7) 93%
(8) 99.79%
(9) 50%
(10) 50% Ownership by Washington Fire and Marine Ins. Co.
(11) 33 1/3% Ownership by Washington Fire and Marine Ins. Co.
33 1/3 % Ownership by Insurance Co. of St. Louis.

Operates at Baden Bank, St. Louis.

(c) Operates at Northwestern Bank and Trust Company, St. Louis.
(d) Operates at Jefferson-Gravois Bank, St. Louis.
(e) Operates at Commercial and Industrial Bank, Memphis.
(f) Operates at Illinois State Bank of Quincy.
(g) Operates at an office of SIC.
(h) SIC has offices in St. Louis, Kansas City and S ikes ton, Mo.,
Little Rock and Jonesboro, Ark., Springfield and Jacksonville,
III., New Orleans, La.,.Pensacola, Fla., Jackson, Meridian
and Hattiesburg, Miss., Tulsa, Ok la., Nashville, Tenn., and
San Antonio, Tex.

Current Events and Announcements
REAPPOINTMENT OF MEMBER OF THE BOARD

Mr. Abbot L. Mills, Jr., of Oregon, who has served
as a member of the Board of Governors since
February 18, 1952, under appointment for a term
ending January 31, 1958, was nominated by the
President on February 5, 1958, for a term of 14
years from February 1, 1958. The nomination
was confirmed without objection by the Senate
on February 17, 1958, and Mr. Mills took the
oath of office on February 21, 1958. Mr. Mills'
tenure was continuous, as under the Federal Reserve Act a member of the Board serves until his
successor is appointed and has qualified.
FEDERAL RESERVE MEETINGS

A meeting of the Federal Open Market Committee
was held on March 4, 1958. Wm. McC. Martin,
Jr., was re-elected Chairman and Alfred Hayes,
Vice Chairman. The representative members of
the Committee elected by the Federal Reserve
Banks for the period of one year beginning March
1, 1958, are: Alfred Hayes, W. D. Fulton, Hugh
Leach, Watrous H. Irons, and H. N. Mangels,
Presidents of the Federal Reserve Banks of New
York, Cleveland, Richmond, Dallas, and San
Francisco, respectively.
At the annual organization meeting of the
Federal Advisory Council, held on February 17,
1958, Frank R. Denton, representing the Fourth
Federal Reserve District, was elected President;
Homer J. Livingston, representing the Seventh
Federal Reserve District, was elected Vice President; and Lloyd D. Brace (First District), Adrian
M. Massie (Second District), and Casimir A.
Sienkiewicz (Third District) were elected directors
to serve with Messrs. Denton and Livingston as
members of the Executive Committee. Herbert
V. Prochnow and William J. Korsvik were appointed Secretary and Assistant Secretary, respectively.
DECREASE IN FEDERAL RESERVE DISCOUNT RATES

The Board of Governors of the Federal Reserve
System has approved actions by the directors of




the twelve Federal Reserve Banks reducing the
discount rates of those Banks to 2V\ per cent.
The reduction at eleven Reserve Banks was from
23A per cent to 2V* per cent and the effective
dates were as follows: the Federal Reserve Banks
of New York, Philadelphia, and Chicago, Friday,
March 7, 1958; the Federal Reserve Bank of Atlanta, Monday, March 10; the Federal Reserve
Bank of Boston, Tuesday, March 11; the Federal
Reserve Banks of Cleveland, Richmond, St. Louis,
Kansas City, and Dallas, Friday, March 14; and
the Federal Reserve Bank of Minneapolis, Friday,
March 21.
At the Federal Reserve Bank of San Francisco
the reduction was from 3 per cent to 2% per
cent, effective Thursday, March 13, 1958.
CHANGES IN RESERVE REQUIREMENTS

On March 18, 1958, the Board of Governors
reduced by one-half of one percentage point reserves required to be maintained by member
banks of the Federal Reserve System against
demand deposits.
This action will release about $490 million from
present required reserves. For central reserve
city banks the reduction from 19% per cent to
19 per cent of net demand deposits will release
about $125 million of reserves. At reserve city
banks, the reduction from 17% P e r c ^ n t to 17
per cent will release about $190 million, and at
country banks the change from 11% per cent to
11 per cent will release approximately $175 million.
For central reserve city and reserve city banks,
the effective date for the new requirements is
March 20, 1958, and for country banks, April
1, 1958.
CHANGES IN THE BOARD'S STAFF

Mr. J. E. Horbett, Associate Director of the
Division of Bank Operations since 1955, retired
on March 1, 1958. Mr. Horbett joined the Board's
organization in 1918, and was an Assistant Director of the Division of Bank Operations from 1935
until his appointment as Associate Director.

298

299

CURRENT EVENTS AND ANNOUNCEMENTS
In the realignment of work resulting from the
retirement of Mr. Horbett, Mr. M. B. Daniels
was appointed Assistant Director in the Division
of Bank Operations effective March 1, 1958. Mr.
Daniels joined the staff of the Board in 1934, and
was in the Division of Bank Operations from 1936
until 1954, last serving there as Chief of the
Reserve Bank Operations Section. From December 1, 1954, until his present appointment he
served as Assistant Controller.
Mr. J. J. Connell, Budget and Planning Officer
since November 17, 1957, was appointed Controller effective March 1, 1958. Except for two
breaks in service totaling approximately nine
years, Mr. Connell has been with the Board since
1920.
Mr. S. H. Bass, a member of the Board's staff
since 1936 and Chief of the Board's Fiscal Section
since 1946, was appointed Assistant Controller
effective March 1, 1958.

in charge of Research. Mr. Bopp obtained his
A.B., B.S., A.M., and Ph. D. degrees from the
University of Missouri, where he was also a member of the faculty from 1931 to 1941.
Mr. Robert N. Hilkert was appointed First Vice
President, effective March 1, 1958, to succeed Mr.
Davis. Mr. Hilkert joined the staff of the Reserve
Bank as Director of Personnel in 1942, was appointed Assistant Vice President in 1943, and Vice
President in 1947. He was on special assignment
at the Board of Governors of the Federal Reserve
System during the period October 30, 1950
through May 31, 1951.* He holds a Ph. B. degree
from Yale University and an M.A. degree from
Columbia University. Prior to service with the
Reserve Bank, Mr. Hilkert was connected with the
Hill School, Pottstown, Pennsylvania, and the
Educational Records Bureau, New York City.
* As Acting Director, Division of Personnel Administration.

CHANGES IN OFFICERS AT RESERVE BANKS

Mr. Alfred H. Williams, President, and Mr. W.
John Davis, First Vice President, of the Federal
Reserve Bank of Philadelphia, retired February
28, 1958. Mr. Williams was appointed President
effective July 1, 1941. Formerly he had served as
a Class C Director for two years.
Mr. Davis became associated with the Bank in
1917 as an Assistant Cashier. He was successively
Assistant Deputy Governor, Assistant Vice President, Vice President, and has been First Vice
President since March 1, 1946.
Effective March 1, 1958, Mr. Karl R. Bopp was
appointed President to succeed Mr. Williams. Mr.
Bopp joined the staff of the Reserve Bank in 1941
as Director of Personnel. In 1942 he was made
Director of Research and in 1947 Vice President




TABLES PUBLISHED ANNUALLY AND SEMIANNUALLY
Latest BULLETIN Reference
Semiannually
Issue
Banking offices:
Analysis of changes in number of... Feb. 1958
On, and not on, Federal Reserve Par
List, number of
Feb. 1958
Annually
Earnings and expenses:
Federal Reserve Banks
Member banks:
Calendar year
First half of year
Insured commercial banks
Banks and branches, number of, by class
and State
Operating ratios, member banks
Stock Exchange firms, detailed debit and
credit balances
Banking and monetary statistics, 1957..
Summary
flow-of-funds
accounts,
1954-56
Bank holding companies, Dec. 31, 1957

Page
202
203

Feb. 1958

200-201

June 1957
Nov. 1956
June 1957

710-718
1248
719

Apr. 1957
June 1957

472-473
720-722

Mar. 1957
Feb. 1958

336
204-210

Oct. 1957 1190-1194
Feb. 1958
211

National Summary of Business Conditions
Released for publication March 17

Recession in economic activity continued in
February. Industrial production, employment,
incomes, and retail sales again declined, and unemployment rose to a new postwar high. Construction activity was curtailed slightly. In February and early March, prices of farm products
and foods continued to rise, while prices of industrial commodities changed little. Total bank
loans and investments rose appreciably although
loans to business continued to decline. Free
reserves of member banks increased further.
Short-term interest rates were generally lower,
while long-term rates rose somewhat.
INDUSTRIAL PRODUCTION

The Board's seasonally adjusted index of output at factories and mines declined three points
further in February to 130 per cent of the 1947-49
average, 11 per cent below the high level of a year
earlier. Severe weather contributed to the reduction in industrial activity last month but also led
to a rise in the Board's index of utility output of
electricity and gas.
Output of durable goods in February was 16
per cent below a year earlier, reflecting widespread
curtailments in equipment and consumer goods
industries and sharp reductions in production of
steel and most other materials. Over-all activity
INDUSTRIAL
1947-49-100

PRODUCTION
160

-

TOTAL

y ^

_

DURABLE
MANUFACTURES
A
120

140
MINERALS^

-

hv

\

—

140

-

/
Vv/
V NONDURABLE \
MANUFACTURES

120

in machinery and other equipment lines declined
to a level about 15 per cent below the record
year-ago level. Production of consumer durable
goods was down 20 per cent from a year earlier
and at the lowest level since December 1953. In
early March auto output was curtailed further and
steel production remained near the low February
rate.
Activity in the rubber products, paper, chemicals, and petroleum refining industries edged
downward in February, and total output of nondurable goods was about 5 per cent below last
year's high. Minerals output also receded somewhat further last month, and in early March was
reduced considerably owing to a sharp curtailment in crude petroleum production.
CONSTRUCTION

Private housing starts, seasonally adjusted, fell
in February to an annual rate of 890,000 units
compared with 1,030,000 in January. The decline
reflected chiefly adverse weather conditions in
many areas of the country. The value of new
construction activity declined to a seasonally adjusted annual rate of $47.5 billion from the revised $48.2 billion in January.
EMPLOYMENT

Unemployment increased further in February
by 680,000 to 5.2 million and was 2.1 million
higher than a year earlier. On a seasonally adjusted basis, unemployment was 6.7 per cent of
the civilian labor force, compared with 5.8 per
cent in January. Nonfarm employment, seasonally adjusted, dropped 600,000 in February to
51.2 million, a level 1.7 million below its August
1957 peak. Large declines continued in durable
goods industries, and construction employment
decreased sharply.

_

DISTRIBUTION
_
^•n.M.I
1954

100

Inn
L.,m,.,,l...
1956
1958

—
11II

1954

1

1
956

1

v

1958

Federal Reserve indexes, seasonally adjusted. Monthly figures,
latest shown are for February.




Seasonally adjusted retail sales declined 1 per
cent in January, according to revised figures, and
in February dropped 3 per cent further to slightly
below the year earlier level. While sales of foods

300

301

NATIONAL SUMMARY OF BUSINESS CONDITIONS
and some other goods remained larger than a
year ago, sales at department and most durable
goods stores—notably auto dealers—were down
sharply, reflecting in part the unusually severe
weather. In early March, sales at department
stores were showing sizable recovery.
COMMODITY PRICES

The general level of wholesale commodity prices
rose slightly further from mid-February to midMarch, reflecting increases in farm products and
foods. With market supplies continuing much
smaller than usual for this time of year, prices
of livestock and meat and fresh fruits and vegetables rose further and were about one-fourth
above a year ago. Industrial commodities changed
little at a level slightly below the January high.
Consumer prices rose .6 per cent in January,
owing mainly to increases in fresh foods. Services
continued to advance while prices of new autos,
some household goods, and apparel declined.
BANK CREDIT AND RESERVES

Total loans and investments at city banks expanded $1.5 billion between early February and
early March, contrary to usual seasonal tendencies.
The increase reflected additions to holdings of
U. S. Government and other securities offset in
part by reductions in loans. Business loans declined $200 million following record reductions
earlier in the year. Repayments by food processors
and commodity dealers continued but borrowing
by metals and textile producers increased. SubPRICES

sequently, in the week of March 12, business loans
at banks in New York and Chicago rose somewhat, reflecting borrowing associated with March
15 income tax payments.
Free reserves of member banks averaged about
$390 million over the four weeks ending March
12 compared with $280 million in the previous
four-week period. In late February and early
March, about $500 million of reserves were released to member banks through the reduction of
Vi percentage point in reserves required to be
maintained against demand deposits. Deposits
subject to reserves increased over the period, absorbing part of the funds. In addition, reserves
were absorbed through a decline in the gold stock
and an increase in Treasury deposits at the Reserve
Banks.
SECURITY MARKETS

Yields on long-term Government bonds changed
little from mid-February to mid-March, despite
the cash sale in early March of a new %\XA billion
1966 Treasury bond and a further reduction of Vi
per cent in discount rates at Federal Reserve Banks
shortly thereafter. Yields on short- and intermediate-term Treasury issues and rates on private
open market paper all declined further in the
latter half of February. After late February,
yields on short-term Treasury securities recovered
a part of this decline, while those on intermediateterm issues leveled off.
Yields on corporate and State and local government bonds have increased somewhat since midFebruary. Stock prices declined slightly in late
February, then increased in early March.
RESERVES AND
Billions

of

BORROWINGS-ALL M E M I E I

PANICS

dollars

BORROWINGS
AT F. R. BANKS

ff '
EXCESS

RESERVES

. 1,,

FREE RESERVES

SaM/|
-KKjJ KH-W-

Bureau of Labor Statistics indexes. "Other" wholesale prices
exclude processed foods, included in total but not shown
separately. Monthly figures, latest shown: January for consumer prices, and February for wholesale prices.




- %f

i

hi 1 i

/

Federal Reserve data. Free reserves are excess reserves
less borrowings. Weekly averages, latest shown are for week
ending Mar. 12.

Financial and Business Statistics
* United States *
Member bank reserves, Reserve Bank credit, and related items
Reserve Bank discount rates; reserve requirements; margin requirements..
Federal Reserve Banks
Bank debits; currency in circulation
All banks: consolidated statement of monetary system; deposits and currency. .
All banks, by classes
Commercial banks, by classes. . .
Weekly reporting member banks. .

305
308
309
312
314
315
318
320

Commercial loans; commercial paper and bankers' acceptances. .
Interest rates
Security prices; stock market credit.
Savings institutions
Federal business-type activities.
Federal finance. .
Security issues. .
Business finance .
Real estate credit
Short- and intermediate-term consumer credit.

322
323
324
325
326
328
332
333
335
338

Selected indexes on business activity. .
Production
Employment and earnings.
Department stores. .
Foreign trade . . . .
Wholesale and consumer prices.
National product and income series. .

342
343
350
352
353
354
356

Tables published in BULLETIN, annually or semiannually—list, with references
Index

299
385




Tables on the following pages include the prin- of material collected by other agencies; figures
cipal statistics of current significance relating for gold stock, currency in circulation, Federal
to financial and business developments in the finance, and Federal credit agencies are obtained
United States. The data relating to Federal from Treasury statements; the remaining data
Reserve Banks, member banks of the Federal are obtained largely from other sources. Back
Reserve System, and department store trade, and figures for 1941 and prior years for banking and
the consumer credit estimates are derived from monetary tables, together with descriptive text,
regular reports made to the Board; production may be obtained from the Board's publication,
indexes are compiled by the Board on the basis Banking and Monetary Statistics.

303

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS
Weekly averages of daily figures

Billions

of

MEMBER BANK
RESERVE BALANCES

CURRENCY IN CIRCULATION

RESERVE BANK CREDIT
GOLD STOCK

TREASURY CASH AND DEPOSITS
NONMEMBER DEPOSITS
FEDERAL RESERVE CREDIT




U. S. GOVERNMENT SECURITIES

DISCOUNTS AND ADVANCES

FEDERAL RESERVE FLOAT

1952

1953

1954

1955

1956

1957

Latest averages shown are for week ending Feb. 26. See p. 305.

304

1958

dollars

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS
[In millions of dollars]
Reserve Bank credit outstanding
U. S. Govt. securities
Week
ending

DisHeld counts
under and Float Total
Bought repur- adTotal outchase
right agree- vances
ment

Gold
stock

Treas- Curury
cur- rency
in
rency
ciroutstand- culation
ing

Deposits, other
than member bank
Member bank
reserves,
reserves
with F. R. Banks
TreasOther
ury
F. R.
cash
acholdcounts
ings Treas- ForReExTotal quired 2 cess 2
ury eign Other

Averages of
daily figures
1957
Jan. 2
Jan. 9
Jan. 16
Jan. 23
Jan. 30

24,994
24,688
24,293
23,811
23,450

24,610
24,601
24,293
23,811
23,450

Feb.
6...
Feb. 1 3 . . .
Feb. 2 0 . . .
Feb. 2 7 . . .

23,435
23,264
22,969
22,854

23,411
23,190
22,958
22,854

Mar.
Mar.
Mar.
Mar.

6.
13.
20.
27.

22,913
22,979
23,178
23,094

22,895
22,934
23,064
23,051

18
45
114
43

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

23,189
23,262
23,282
23,237

23,040
23,040
23,146
23,169

149 1,074
877 25,165
222 1,230
881 25,400
967 25,520
136 1,244
947 1,484 25,695
68

May 1.
May 8.
May 15.
May 22.
May 29.

23,169
23,213
23,083
22,915
22,930

23,169
23,125
23,033
22,915
22,901

June 5.
June 12.
June 19.
June 26.

23,110
22,972
22,930
22,951

22,950
22,926
22,880
22,888

902
160
954 24,987
46 1,059
936 24,988
50 1,089 1,384 25,424
63 1,003 1,320 25,294

22,620
22,621
22,621
22,622

5,104
5,106
5,106
5,106

July
July
July
July
July

3.
10.
17.
24.
31.

23,098
23,443
23,319
23,342
23,360

23,031
23,260
23,252
23,235
23,084

67 1,068
183 1,213
67 1,062
739
107
553
276

1,198 25,387
1,111 25,792
1,236 25,641
1,351 25,456
998 24,932

22,623
22,623
22,625
22,625
22,626

Aug.
Aug.
Aug.
Aug.

7.
14.
21.
28.

23,116
23,047
23,034
23,220

23,078
23,047
23,034
23,215

928 25,124
38 1,060
1,161
874 25,102
931 1,227 25,211
915
977 25,133

23,511
23,399
23,303
23,178

23,463
23,367
23,286
23,173

832
48
32 1,031
950
17
5 1,106

Oct. 2.
Oct. 9.
Oct. 16.
Oct. 23.
Oct. 30.

23,346
23,545
23,371
23,267
23,195

23,294
23,312
23,281
23,222
23,179

Nov. 6.
Nov. 13.
Nov. 20.
Nov. 27.

23,441
23,498
23,288
23,318

Dec. 4.
Dec. 11.
Dec. 18.
Dec. 25.

5,066
5,066
5,066
5,067
5,068

31,829
31,479
31,108
30,827
30,607

777
-783
786
798
809

395
352
293
199
420

374
323
320
324
329

335
287
267
268
258

640 1,040 25,146 22,251 5,070
741
962 24,997 22,252 5,070
577 1,188 24,764 22,303 5,071
713 1,217 24,813 22,303 5,073

30,596
30,641
30,605
30,544

817
820
815
815

534
377
173
297

333
366
307
334

755 1,179 24,871 22,304 5,077
880
908 24,791 22,304 5,079
783 1,173 25,158 22,305 5,080
844
967 24,930 22,305 5,083

30,566
30,609
30,589
30,502

813
812
811
813

479
471
302
353

5,086
5,088
5,089
5,092

30,589
30,655
30,681
30,610

808
814
808
791

730 1,168 25,093 22,318 5,094 30,499
993
947 25,177 22,318 5,095 30,589
975
948 25,031 22,319 5,096 30,654
793 1,341 25,070 22,320 5,098 30,645
903
979 24,833 22,406 5,102 30,660

19,856
19,701
19,300
19,342
18,918

19,110
18,971
18,765
18,724
18,550

746
730
535
618
368

276
299
226
382

992 18,920
,007 18,808
,116 18,895
,134 18,683

18,445
18,265
18,309
18,218

475
543
586
465

329
297
300
334

212
201
199
205

,131
,129
,138
,139

18,721
18,654
19,204
18,971

18,231
18,205
18,578
18,362

490
449
626
609

517
387
478
456

294
340
344
390

314
305
300
454

,167 18,868
,205 19,088
,203 19,107
,202 19,201

18,525
18,523
18,556
18,639

343
565
551
562

793
795
787
790
794

419
504
479
525
562

352
366
366
362
358

291
275
241
273
279

,148 19,000
,078 18,984
,075 18,845
,074 18,818
,073 18,616

18,621
18,495
18,368
18,284
18,264

379
489
477
534
352

30,837
30,903
30,904
30,849

792
791
782
776

485
463
518
477

357
379
389
407

323
276
335
254

,072 18,846
,069 18,834
,076 19,148
,087 19,171

18,378
18,330
18,546
18,625

468
504
602
546

5,107
5,108
5,108
5,108
5,110

31,150
31,313
31,184
30,999
30,910

763
765
770
774
770

546
431
455
507
494

420
339
413
385
370

296
290
279
267
278

,077 18,865
,077 19,308
,073 19,200
,070 19,189
961 18,885

18,521
18,732
18,636
18,568
18,493

344
576
564
621
392

22,627
22,627
22,625
22,626

5,113
5,114
5,116
5,118

30,983
31,069
31,055
30,998

767
764
762
764

498
475
513
475

355
363
343
339

277
273
270
268

,116
,113
,203
,203

18,868
18,786
18,806
18,831

18,331
18,195
18,254
18,397

537
591
552
434

858 25,228
953 25,408
,442 25,719
,318 25,622

22,626
22,626
22,627
22,628

5,118
5,119
5,121
5,123

31,149
31,256
31,184
31,052

759
759
755
769

485
431
510
759

340
357
429
386

281
279
287
255

,197 18,760
,194 18,876
,196 19,108
,189 18,963

18,346
18,301
18,484
18,416

414
575
624
547

942
52
233 1,009
992
90
605
45
710
16

,000 25,304
991 25,563
,071 25,451
,517 25,407
,051 24,972

22,634
22,646
22,658
22,665
22,671

5,125
5,127
5,128
5,131
5,132

31,039
31,129
31,191
31,129
31,008

776
774
776
781
786

493
498
506
464
518

356
373
333
317
318

253
260
252
265
251

,112 19,034
,112 19,189
,110 19,068
,109 19,137
,057 18,837

18,685
18,625
18,574
18,574
18,474

349
564
494
563
363

23,256
23,332
23,282
23,167

185
166
6
151

824
911
752
777

943 25,225
997 25,424
,430 25,489
,209 25,325

22,707
22,731
22,757
22,762

5,135
5,136
5,137
5,139

31,115
31,287
31,336
31,431

792
795
801
794

461
505
503
469

367
329
315
301

313
407
386
294

,056 18,963
,057 18,911
,054 18,987
,030 18,907

18,509
18,354
18,459
18,461

454
557
528
446

23,732
23,886
23,907
23,950

23,480
23,574
23,600
23,617

252
312
307
333

626
676
751
786

,005 25,387
,020 25,617
,525 26,218
,894 26,687

22,763
22,766
22,770
22,770

5,141
5,142
5,143
5,145

31,668
31,827
31,973
32,089

770
769
768
764

305
318
339
483

291
318
334
359

191
186
183
179

,041 19,023
,080 19,027
,050 19,483
,061 19,666

18,580
18,600
18,873
19,014

443
427
610
652

1958
Jan.
1....
Jan.
8....
Jan. 15....
Jan. 22....
Jan. 29....

24,344
24,011
23,720
23,315
23,372

23,735
23,645
23,581
23,266
23,335

609
366
139
49
37

661
707
580
359
295

,550 26,623
,328 26,100
,039 25,390
,230 24,949
919 24,632

22,774
22,781
22,781
22,782
22,783

5,147
5,146
5,147
5,149
5,151

31,962
31,553
31,207
30,878
30,625

773
768
771
781
789

458
529
503
511
521

397
337
306
275
275

201 1,045 19,707 19,042
186
996 19,658 18,982
190
994 19,348 18,769
227
992 19,216 18,624
275
992 19,089 18,509

665
676
579
592
580

Feb. 5....
Feb. 12....
Feb. 19....
Feb. 26....

23,364
23,422
23,373
23,380

23,321
23,292
23,285
23,380

43
130

803 24,397
189
793 24,543
286
361 1,054 24,830
952 24,527
153

22,783
22,784
22,785
22,714

5,157
5,159
5,161
5,165

30,581
30,675
30,642
30,542

777
734
685
695

378
296
501
508

265
284
337
284

294
325
293
276

Sept.
Sept.
Sept.
Sept.

4.
11.
18.
25.

384
87

50
29

925
535
348
347
528

1,537
1,539
1,278
1,446
1,078

27,524
26,809
25,954
25,636
25,087

21,949
21,949
21,950
21,951
22,080

22,306
22,307
22,313
22,317

» Preliminary.




For other notes see following page.

305

973
899
897
894
893

1,046 18,997
1,118 19,054
1,195 19,122
1,193, 18,909

18,498
18,483
18,437
18,441

499
571
*>685
P468

306

BANK RESERVES AND RELATED ITEMS
MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS—Continued
[In millions of dollars]
Reserve Bank credit outstanding
U. S. Govt. securities

Period
or
date
Total

DisHeld counts
under
Bought repur- and Float Total
adoutchase
right agree- vances
ment

Gold
stock

Treas- Curury
cur- rency
in
rency
ciroutculastand- tion
ing

Deposits, other
than member bank
Member bank
reserves,
reserves
with F. R. Banks
TreasOther
ury
F. R.
cash
acholdcounts
ings Treas- ForExReOther
Total quired 2 cess2
ury eign

Averages of
daily figures
1957
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

23,111
23,061
23,239
23,041
22,989
23,351
23,146
23,325
23,348
23,417
23,982

23,083
22,997
23,121
22,996
22,917
23,198
23,129
23,302
23,252
23,276
23,615

665 1,106 24,912 22,279 5,071 30,595
28
859 1,024 24,968 22,305 5,081 30,568
64
118 1,036 1,110 25,411 22,313 5,090 30,614
45
931 1,046 25,041 22,358 5,098 30,645
72 1,009 1,170 25,189 22,621 5,106 30,902
917 1,175 25,466 22,625 5,108 31,116
153
989 25,166 22,626 5,115 31,035
17 1,010
23
994 1,147 25,489 22,627 5,121 31,143
96
818 1,143 25,326 22,660 5,129 31,109
810 1,126 25,373 22,743 5,137 31,335
141
716 1,443 26,186 22,769 5,144 31,932
367

817
812
803
792
782
769
764
763
780
793
768

336
423
429
521
490
480
490
547
495
464
385

335
316
348
361
393
377
349
378
338
322
345

294
216
339
276
290
279
273
271
258
337
186

18,302
18,366
18,580
18,362
18,485
18,595
18,300
18,434
18,573
18,447
18,843

514
518
507
465
497
534
534
522
467
511
577

454 1,118 25,229 22,782 5,148 31,059
907 24,568 22,759 5,161 30,608
242

777
717

512
421

297
294

224
993 19,296 18,723
299 1,150 19,000

573

,071 18,816
,135 18,884
,195 19,087
,075 18,827
,077 18,982
,048 19,129
,163 18,834
180 18,956
,097 19,040
,044 18,958
,063 19,420

1958
Jan
Feb
Midyear or
year-end

23,608 23,458
23,378 23,313

1929—June....
1933—June....
1939—Dec
1941—Dec
1945—Dec
1947—Dec
1950—Dec
1954—Dec
1955—Dec
1956—June....
Dec

216
1,998
2,484
2,254
24,262
22,559
20,778
24,932
24,785
23,758
24,915

148
1,998
2,484
2,254
24,262
22,559
20,725
24,888
24,391
23,712
24,610

68 1,037
164
7
3
249
85
53
67
44
143
108
394
232
46
50
305

52 1,400
4 2,220
91 2,593
94 2,361
578 25,091
535 23,181
1,368 22,216
808 25,885
1,585 26,507
1,210 25,219
1,665 26,699

4,037
4,031
17,644
22,737
20,065
22,754
22,706
21,713
21,690
21,799
21,949

2,019
2,286
2,963
3,247
4,339
4,562
4,636
4,985
5,008
5.032
5,066

4,459
5,434
7,598
11.160
28,515
28,868
27,741
30,509
31,158
30.715
31,790

204
264
2,409
2,215
2,287
1,336
1,293
796
767
768
775

36
35
634
867
977
870
668
563
394
522
441

6
15
397
774
862
392
895
490
402
297
322

21
151
256
586
446
569
565
441
554
313
426

22,887
23,149
23,169
23,108
23,035
23,355
23,539
23,312
23,338
23,733
24,238

22,854
23.040
23,169
22,950
22,994
23,079
23,475
23,312
23.218
23,448
23,719

595
994
829
158 1,170
558
41
420
276
986
64
396
* iio 789
819
285
55
519

1,196 24,704
803 24,970
936 24,960
926 25,224
1,199 24,816
896 24,691
865 25,418
898 24,622
1,062 25,206
942 25,515
1,424 25,784

22,304
22,306
22,318
22,620
22,623
22,627
22,626
22,635
22.691
22;763
22,781

5,076
5.086
5,094
5,104
5.107
5.111
5,118
5,125
5,135
5,139
5,146

30,575
30,585
30,519
30,836
31,082
30,933
31,133
31,073
31,090
31,661
31,834

809
804
791
788
758
759
752
773
784
761
761

458
591
509
568
498
504
477
429
552
243
481

327
311
316
360
449
364
342
337
378
283
356

206
304
294
274
308
296
285
261
256
196
246

23,331 23,331
23,240 23,240

217
122

763 24,352 22,784 5,158 30.576
924 24,330 *>22,686 ^5,168 2*30,550

771
P697

469
516

249
265

279
990 18,958 18,543
336 1,151 18,667 *>18,229

415
*438

150
65

374
346
251
291
495
563
714
907
925
992
901

2,356
2,292
11,653
12,450
15,915
17,899
17,681
18,876
19,005
18,443
19,059

2,333
1,817
6,444
9,365
14,457
16,400
16,509
18,618
18,903
18,449
19,089

23
475
5,209
3,085
1,458
1,499
1,172
258
102
-6
-30

End of month
1957
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct.. .
Nov..
Dec.

33
109

,133 18,576
,137 18,629
,079 18,864
,072 19,049
,075 18,376
942 18,630
,198 18,975
,111 18,399
,056 18,917
,000 19,274
998 19,034

282
18,294
117
18,512
276
18,588
698
18,351
18,543 -167
110
18,520
670
18,305
18,694 -295
376
18,541
696
18,578
19,091 - 5 7

1958
Jan..
Feb..
Wednesday
1957
23,778
23,872
23,863
24,020
24,238

23,555
23,600
23,600
23,636
23,719

223
272
263
384
519

498
972
731
794
55

5,141
5.142
5,144
5.145
5.146

31,716
31,878
32,002
32.131
31,834

773
770
776
759
761

244
333
488
346
481

308
330
344
386
356

182
182
175
180
246

1,095
1,041
1,063
1.062
998

18,907
19.214
19,625
19,444
19,034

18.667
18,737
19.106
18,937
19,091

240
477
519
507
-57

Jan. 8
Jan. 15
Jan. 22
Jan. 29

23,745
23,708
23,333
23,360

23,635
23,557
23,257
23,357

110
151
76
3

707 1,044 25,551 22,781 5,146
285 1,089 25,127 22,782 5,148
392 1,088 24,866 22,782 5,150
741 24,397 22,783 5,151
253

31.375
31.019
30.730
30,543

766
782
788
785

474
525
454
511

342
279
294
257

171
187
204
267

994
992
992
991

19,355
19,273
19,336
18,977

18,893
18,722
18.610
18,479

462
551
726
498

Feb.
Feb.
Feb.
Feb.

23,411
23,464
23,356
23,409

23.307
23,299
23,356
23.409

104
165

805 24,409
153
237
923 24,665
135 1,208 24,741
184
721 24,356

5.158
5.160
5.163
5,166

30.582
30.674
30.571
30.495

780
686
702
700

207
350
453
406

284
297
291
274

32
597
282
298

1,119
1,118
1,208
1,154

19,058
18,888
19,182
18,880

500
18,558
437
18,451
'18,546 *>636
I 8,462

Dec.
Dec.
Dec.
Dec.
Dec.

4
11
18
25
313

1,019
961
1,923
1,520
1,424

25,321
25,836
26,559
26,394
25,784

22,763
22,770
22,770
22,770
22,781

1958

5
12
19
26

p

22,784
22,784
22,785
22,685

Preliminary.
1 Includes industrial loans and acceptances; these items are not shown
separately in this table, but are given for end-of-month and Wednesday




dates in subsequent tables on Federal Reserve Banks.
2
These figures are estimated.
3 Tuesday.

307

BANK RESERVES AND RELATED ITEMS
RESERVES, DEPOSITS, AND BORROWINGS OF MEMBER BANKS, BY CLASSES
[Averages of daily figures. * In millions of dollars]

All
member
banks

Item and period

Central reserve
city banks

Reserve
city
banks

Country
banks

New
York

Chicago

19 295
18 816
18 884
19 087
18,827
18 982
19,129
. . . 18,834
18 956
19,040
18 958
19 420

4 316
4 205
4*341
4 307
4,234
4 335
4,294
4,170
4 211
4,231
4 162
4,336

1 126
I 107
I 102
I 097
1,101
121
1,131
1,123
1 122
1,116
1 101
1,136

7 996
7 781
7 746
7 921
7,794
7 774
7,906
7,790
7 800
7,836
7 849
8 042

5 857
5 722
5 696
5 762
5,697
5 751
5,799
5,750
5 823
5,857
5 847
5,906

19,296

.

4,251

1,125

8,007

5,914

1958—Jan
Week ending:
1958 Jan 22
29
Feb.

19,216
19,089

4,151
4,203

1,116
1,114

7,959
7,930

5,989
5,842

18 997
19 054
19,122
18,909

4 235
4,200
4,208
4,201

1 122
1,114
1,113
1,113

7 873
7 908
7,897
7,857

5 766
5,833
5,905
5,738

18 773
18,302
18 366
18 580
18 362
18 485
18,595
18 300
18,434
18 573
18 447
18 843

4 327
4,200
4 326
4,308
4 221
4 320
4,288
4 152
4,203
4 231
4 147
4*303

1 129
1,107
1 098
I 097
1 098
I 123
1,124
1 121
1,117
1 116
1 100
1127

7 938
7,715
7 ? 686
7 855
7 739
7 729
7,840
7 722
7,749
7 797
7 786
7 956

5 379
5,279
5 256
5 320
5 305
5 314
5,344
5 306
5,366
5 429
5 414
5 457

18,723

4,216

1,121

7,928

5,458

..

18,624
18 509

4,163
4,133

1,113
1,108

7,903
7 840

5,445
5 428

..

18,498
18,483
*>18 437
»18,441

4,201
4,191
4,162
4,190

1,120
1,109
1.106
1,108

7,795
7,798
7 787
7,768

5,382
5,385
?5 382
^5,376

5
12
19
26

Required reserves:

Nov
Dec

1958 Jan

Feb

5
12
19

New
York

Chicago

Reserve
city
banks

Country
banks

1957_jan
Feb
Mar

-2

478
443
440
443
393
438
455
444
457
428
432
449

523
514
518
506
465
496
534
534
522
467
512
577

-10
5
14
—1
13
15
6
19
9
16
34

1
8

58
66
60
65
56
45
66
69
51
39
63
86

1958—Jan

573

34

4

78

456

Week ending:
1958—Jan. 22
29

592
580

-12
70

4
6

56
90

544
414

499
572

34
9
46
12

2
5
7
5

79
110
110
89

384
448

407
640
834
1 011
909
1 005
917
1 005
988
811
804
710

30
129
116
299
117
200
186
308
263
141
96
139

38
53
257
210
169
46
34
28
120
115
123
85

229
314
302
329
422
531
519
468
485
428
405
314

451

80

29

222

110
144
159
173
201
228
177
201
121
127
181
172
119

29

355
295

59
3

201
144

87
145

5
12
19
26

189
286
361
153

44
140

8
3
2
27
14
2

91
126
125
61

95
89
82
90

-40
-123
-101
-300
-104
-185
-181
-289
-254
141
-80
-105

-40
-53
-253
-210
-165
-48
-28
-26
-115
115
-123
-77

-172
-249
-242
-263
-367
-486
-452
-400
-433
389
-342
-228

369
299
280
269
192
210
278
244
335
301
251

Apr

May
July
Aug
Sept
Oct
Nov
Dec

Feb.

5
12
19
26

4
-1
3
-2
7
2
5

p

362

2

1957—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct

Week ending:
1958 Jan 22
29

Central reserve
city banks

Excess reserves:2

Total reserves held:
1957—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.
Nov
Dec

Item and period

All
member
banks

26

Borrowings at Federal
Reserve Banks:
1957—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov...
Dec
1958—Jan

..

Week ending:
1958—Jan. 22
Feb.

. . .

January 1957
Deposits:
Gross demand deposits:
Total
Interbank
Other
Net demand deposits 3 . . .
Time deposits
Demand balances due
from domestic banks. .

Free reserves:
118,717
13,656
105,061
101,694
42,460

23,740
4,342
19,398
20,777
3,426

6,084
1,210
4,875
5,314
1,317

46,556
6,665
39,891
39,321
17,209

42,336
1,440
40,896
36,283
20,509

6,708

62

109

2,099

4,438

1957—Jan
Feb
Mar
Apr
May
June
July
Aug
SeDt

117
-126
-316
-505
-444
-508
-383
-471
— 467
344
— 293
-133

Oct

Nov
Dec

Jsmuary 1958
Gross demand deposits:
Total
Interbank....
Other
Net demand deposits 3 . . .
Time deposits
Demand balances due
from domestic banks. .

m

1958 Jan
117,402
13,545
103,858
100,232
46,768

23,267
4,257
19,010
20,112
3,879

6,020
1,194
4,826
5,262
1,361

45,952
6,582
39,369
38,778
18 966

42,163
1,511
40,652
36,080
22 562

6,650

59

114

2,056

4,422

v Preliminary.
1 Averages of daily closing figures for reserves and borrowings and of
daily opening figures for other items, inasmuch as reserves required are
based on deposits at opening of business.
2 Weekly figures of required, excess, and free reserves of all member




2 4

122

-46

-25

-144

337

1958 Jan 22
29

237
285

-71
67

-4
3

-145
-54

457
269

Feb

310
286
^325

33
-35
-94
12

-22
-7
3

-12
-16
-15
28

289
359

5
12
19
26

banks and of country banks are estimates.
3 Demand deposits subject to reserve requirements, i. e., gross demand
deposits minus cash items reported as in process of collection and demand
balances due from domestic banks.
4
Free reserves are excess reserves less borrowings.

308

DISCOUNT RATES
FEDERAL RESERVE BANK DISCOUNT RATES
[Per cent per annum]
Discounts for and advances to member banks
Advances secured by Government
obligations and discounts of and
advances secured by eligible paper
(Sees. 13 and 13a)i

Federal Reserve Bank

Rate on
Feb. 28
Boston
New York. . .
Philadelphia..
Cleveland
Richmond. . .
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco

In effect
beginning—
Jan. 28, 1958
Jan. 24, 1958
Jan. 22, 1958
Jan. 24, 1958
Jan. 24, 1958
Jan. 28, 1958
Jan. 24, 1958
Jan. 24, 1958
Feb. 7, 1958
Jan. 24, 1958
Feb. 14, 1958
Nov. 29, 1957

234

I
I

Previous
rate

Other secured advances
[Sec. 10(b)]

3
3
3
3
3
3
3
3
3
3
3
3%

1
Rates shown also apply to advances secured by obligations of Federal
intermediate credit banks maturing within 6 months.
NOTE.—Maximum maturities. Discounts for and advances to member
banks: 90 days for discounts and advances under Sections 13 and 13a of
the Federal Reserve Act except that discounts of certain bankers' acceptances and of agricultural paper may have maturities not exceeding 6

Advances to individuals,
partnerships, or corporations other than member
banks secured by direct
obligations of the U. S.
(last par. Sec. 13)

Rate on
Feb. 28

In effect
beginning—
Jan. 28,1958
Jan. 24,
1958
Jan. 22,1958
Jan. 24,1958
Jan. 24,1958
Jan. 28,1958
Jan. 24,
1958
Jan. 24,
1958
Feb. 7, 1958
Jan 24 1958
Feb. 14, 1958
Nov. 29, 1957

Rate on
Feb. 28

In effect
beginning—

3*4

Previous
rate

Jan. 28, 1958
Jan. 24, 1958
Aug. 9, 1957
Nov. 29, 1957
Jan. 24, 1958
Jan. 28, 1958
Jan. 24, 1958
Jan. 24, 1958
Feb. 7,1958
Nov. 22, 1957
Aug. 13, 1957
Aug. 15, 1957

1
*
4
4
4

h
4

Previous
rate

months and 9 months, respectively, and advances secured by obligations
of Federal intermediate credit banks maturing within 6 months are
limited to maximum maturities of 15 days; 4 months for advances under
Section 10(b). Advances to individuals, partnerships, or corporations
under the last paragraph of Section 13: 90 days.

FEDERAL RESERVE BANK OF NEW YORK DISCOUNT RATES 1

MEMBER BANK RESERVE REQUIREMENTS

[Per cent per annum]

[Per cent of deposits]

Date effective
1930—Feb.
Mar.
May
June
Dec.
1931—May
Oct.
Oct.
1932—Feb.
June
1933—Mar.
Apr.
May
Oct.
1934_Feb.
1937—Aug.
1942—Oct.

7
14
2
20
24
8
9
16
26
24
3
7
26
20
2
27
30

Date effective

Rate
4

I*

I*
1%

Net demand deposits 1

Rate

1946_Apr. 25
1948—Jan. 12
Aug. 13
1950—Aug. 21
1953—Jan. 16
1954_Feb. 5
Apr. 16
1955_Apr. 15
Aug. 5
Sept. 9
Nov. 18
1956—Apr. 13
Aug. 24
1957—Aug. 23
Nov. 15
1958—Jan. 24
In effect Mar. 1, 1958...

Effective date
of change

Central
reserve
city
banks

Reserve

city
banks

Country
banks

21/2
3*

I 54

*%

1917—June 21

[Per cent of market value]

Prescribed in accordance with
Securities Exchange Act of 1934

Regulation T:
For extensions of credit by brokers and
dealers on listed securities
For short sales
Regulation U:
For loans by banks on stocks

Jan. 4, Apr. 23, Effec19551955tive
Apr. 22, Jan. 15, Jan. 16,
1955
1958
1958

22%

1941_Nov.
1942—Aug.
Sept.
Oct.

1
20
14
3

26
24
22
20

1948—Feb.
June
Sept,
1949_May
June
Aug.
Aug.
Aug.
Sept.

27
11
16,24*....
1,5*
30, July 1*.
1, 11*
16, 1 8 * . . . .
25
1

22
24
26
24

23
24

1,9*

22

19
20
19

June 1 6 , 2 4 * . . . .
July 29, Aug. 1 *.

21
20

18

12

Central
reserve
and
reserve
city
banks

Country
banks

1954

s*

8*

? ?

171/i

12

5

5

20

14

6

6

22
21
20

16
15
14
13
12

8*
it*

13
14

VA I*
6
5

6
5

6

6

5

5

13

60
60

70
70

50
50

60

70

50

1958—Mar. 27, Mar. 1.

191/2

17%

11%

In effect Mar. 1, 1958..

1 Regulations T and U limit the amount of credit that may be extended
on a security by prescribing a maximum loan value, which is a specified
percentage of its market value at the time of extension; margin requirements are the difference between the market value (100%) and the maximum loan value. Change on Jan. 4, 1955, was effective after the close
of business on that date.




g*

10%

Time deposits

7

15

1951—Jan. 11, 1 6 * . . . .
Jan. 25, Feb. 1*.

MARGIN REQUIREMENTS 1

10

19%

1938—Apr. 16

1 Under Sees. 13 andl3a, as described in table above.
* Preferential rate for advances secured by Govt. securities maturing
or callable in 1 year or less in effect during the period Oct. 30, 1942Apr. 24, 1946. The rate of 1 per cent was continued for discounts of and
advances secured by eligible paper.
NOTE.—Repurchase rate on U. S. Govt. securities. In 1955, 1956, and
1957 this rate was the same as the discount rate except in the following
periods (rates in percentages): 1955—May 4-6, 1.65; Aug. 4, 1.85; Sept.
1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; and 1956—Aug. 24-29, 2.75;
1957—Aug. 22, 3.50.

13

1936—Aug. 16
1937—Mar. 1
May 1

1953- July

58

•

191/2

17%

11%

5

5

Present legal requirements :
Minimum
Maximum

13
26

10
20

7
14

3
6

3
6

1 Demand deposits subject to reserve requirements which, beginning
Aug. 23, 1935, have been total demand deposits minus cash items in
process of collection and demand balances due from domestic banks (also
minus war loan and Series E bond accounts during the period Apr. 13,
1943-June 30, 1947).
* First-of-month or midmonth dates are changes at country banks, and
other dates (usually Thurs.) are at central reserve or reserve city banks.

FEDERAL RESERVE BANKS

309

STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS
[In thousands of dollars]
Wednesday
Item

End of month

1958
Feb. 26

Feb. 19

Feb. 12

1958
Feb. 5

Jan. 29

Feb.

1957

Jan.

Feb.

Assets
Gold certificate account
Redemption fund for F. R. notes..

21,245,393 21,345,393 21,345,392 21 245,393 21,245,392 21 245,394 21 245,393 20 ,764,392
853,803
857,193
858,711
853,802
854,018
855,593
858,710
861,898

Total gold certificate reserves.

22,099,196 22,199,411 22,200,985 22,102,586 22,104,103 22,099,196 22,104,103 21,626,290

F. R. notes of other Banks
Other cash
Discounts and advances:
For member banks
For nonmember banks, etc
Industrial loans
Acceptances—Bought outright
Held under repurchase agreement.
U. S. Government securities:
Bought outright:
Bills
Certificates—Special
Other
Notes
Bonds

545,402
521,607

549,722
511,941

560,503
531,631

627,259
535,407

676,726
527,860

536,425
529,677

656,234
544,476

455,038
469,903

183,737

135,117

237,397

153,061

252,921

122,361

217,380

512
41,703

485
41,514

523
39,839

512
39,838

541
39,838
3,000

506
42,887

536
40,910

570,456
25,000
758
24,493

674,023

621,023

563,773

571,273

504,460

595,273

118,255

,946,105 19,933,612

,362,199
,571,413
,801,750

621,773

19,946,105 19,946,105 19,933,612 19,933,612 19
2,789,257 2,789,257 2,801,750 2,801,750

! 8 0 ^ 750 :J89^257

23,409,385 23,356,385 23,299,135 23 ,306,635 23. 357,135 23,239,822 23,330,635 22,853,617
104,300
3,000
164,700
33,000

Total bought outright
Held under repurchase agreement.
Total U. S. Government securities.

23,409,385 23,356,385 23,463,835 23,410,935 23,360,135 23,239,822 23,330,635 22,886,617

Total loans and securities

23,635,337 23,533,501 23,741,594 23,604,346 23,656,435 23,405,576 23,589,461 23,507,324

Due from foreign banks.
Uncollected cash items..
Bank premises
Other assets

15
4,626,630
84,580
124,468

Total assets.

15
15
15
15
,041,846 4,760,371 4,424,067 4,561,983
84,741
84,295
84,259
84,372
172,654
110,666
288,075
189,367

15
15
22
,373,925 4,156,763 5,146,306
84,749
84,203
74,804
129,033
293,003
106,980

51,637,235 52,031,843 52,068,838 51,550,629 51,899,456 51,158,596 51,428,258 51,386,667

Liabilities

26,510,170 26,586,310 26,708,350 26,685,493 26,701,889 26,558,812 26,711,420 26,555,990

Federal Reserve notes
Deposits:
Member bank reserves
U. S. Treasurer—general account.
Foreign
Other

18,879,769 19,182,
452!
406,364
273,956
290;
297,801
282!

Total deposits.

18,888,425 19,058,348 18,977,485 18,667,005 18,958,370 18,575,591
511
206.
516;
469,246
"""
457,593
349;
283
257;
265;
249,i013
327,113
296!
321
267;
336;
279,.437
205,882
596;

19,857,890 20,207,966 20,132,028 19,869,881 20,012,727 19,785,224 19,956,066 19,566,179
3,905,843 3,834,
16,653
15,

Deferred availability cash items
Other liabilities and accrued dividends.
Total liabilities.

3,837,131 3,619,014 3,821,062 3,449,524 3,394,031 3,949,869
15,235
14,931
14,568
14,479
16,154
15,092

50,290,556 50,643,810 50,693,663 50,188,956 50,550,913 49,808,491 50,075,996 50,087,130

Capital Accounts
Capital paid in
Surplus (Section 7)
Surplus (Section 13b)
Other capital accounts

348,824
809,198
27,543
161,114

Total liabilities and capital accounts.
Ratio of gold certificate reserves to deposits and F. R.
note liabilities combined (per cent)
Contingent liability on acceptances purchased for
foreign correspondents
Industrial loan commitments

348,591
809,198
27,534
202,701

348,301
809,198
27,543
190,133

347,780
809,198
27,543
177,152

347,364
809,198
27,543
164,438

348,880
809,198
27,543
164,484

347,482
809,198
27,543
168,039

330,179
747,593
27,543
194,222

51,637,235 52,031,843 52,068,838 51,550,629 51,899,456 51,158,596 51,428,258 51,386,667

47.7

47.4

47.4

47.5

142,742
1,075

132,914
1,102

131,312
1,069

128,399
1,079

47.4
127,242
1,065

139,414
1,062

46.9

127,188
1,058

58,016
2,014

Maturity Distribution of Loans and U. S. Government Securities1
Discounts and advances—total
Within 15 days
16 days to 90 days
91 davs to 1 vear
Industrial loans—total
Within 15 days
16 davs to 90 davs
91 days to 1 year
Over 1 vear to 5 vears
Acceptances—total
Within 15 days
16 davs to 90 davs
Within 15 days
16 days to 90 days
91 days to 1 year
Over 5 years to 10 years

252,921
153,061
135,117
237,397
122,361
217,380
595,456
149,489
249,432
129,441
234,850
115,493
211,648
564,297
5,562
3,474
2,426
3,386
6,769
5,634
6,159
98
103
103
114
121
99
98
25,000
51?
512
541
506
536
758
485
523
119
120
119
120
111
128
120
36
20
20
29
29
29
20
20
79
224
260
249
245
414
751
278
273
123
113
113
123
123
113
123
229
41 703
39,838
41,514
39,839
40,910
24,493
42,838
42,887
17 784
12,138
12,716
13,063
15,016
12,330
8,241
9,507
,419
28,798
26,776
27,700
27,822
30,557
31,403
16,252
73 409 385 73 ,356,385 71 ,463,835 73 ,410,935 73 ,360,135 73 ,239,822 73 330,635 7? ,886,617
714 571
241,023 5 ,856,663 5 ,733,650
230,550
45,010 5, 585,650
63,600
459 ,450
380,000
378,803
448,916 ,901,216
459,450
516,616
66,755
19 946 105 19 ,946,105 14 ,439,112 14 ,439,112 14 ,439,112 19 ,946,105 14 439,112 19 ,954,512
1 374 400 1 ,374,400 1 ,374,400
,374,400 1 ,374,400 1 ,374,400 1, 374,400
373,279
56 610
56,610
56,610
56,610
56,610
56,610
56,610 1 ,013,614
1 ,358 ,247 1 ,358,247 1 ,358,247 1 ,358,247 1 ,358,247 1 ,358,247 1, 358,247 1 ,414,857
183 ,737
181 jn

1
Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.




310

FEDERAL RESERVE BANKS
S T A T E M E N T OF CONDITION OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1958
[In thousands of dollars]

New
York

Philadelphia

Cleveland

Richmond

Item

Boston

Gold certificate account
Redemption fund for F. R.
notes

1,010,571

Total gold certificate reserves

1,065,821

F. R. notes of other Banks..
Other cash

32,276
31,147

131,413
117,328

34,069
30,066

58,181
46,866

39,838
34,533

80,403
40,092

12,840
50
327

11,825

11,480

11,110

11,565

10,915

Discounts and advances:
Secured by U. S. Govt.
securities
Other
Industrial loans
Acceptances:
Bought outright
Held under
repurchase
agreement
,
U. S. Govt. securities:
Bought outright
,
Held under
repurchase
agreement
Total loans and securities...
Due from foreign b a n k s . . . .
Uncollected cash items
Bank premises
Other assets

55,250

5,790,603 1,139,016 1,864,121 1,310,472
178,988

59,569

78,250

69,106

5,969,591 1,198,585 1,942,371 1,379,578

Atlanta

Chicago

870,121 3,831,836

St.
Louis

Minneapolis

Kansas
City

Dallas

San
Francisco

841,698

415,967

913,368

155,629

42,951

22,036

41,260

918,399 3,987,465

884,649

438,003

954,628

41,812
87,430

13,813
31,360

21,838
9,785

7,295
17,953

35,439
20,918

40,048
62,199

18,900
148

8,450

5,800

17,128

1,350

800

48,278

158

834,182 2,423,439
28,238

74,247

862,420 2,497,686

21

42,887

,267,639 5,811,838 1,356,578 2,041,340 1,484,862 1,203,753 4,056,534

961,083

1,280,856 5,866,550 1,368,216 2,052,450 1,496,427 1,214,668 4,075,582 969,533
1
285,731
4,941
6,820

H
823,420
10,629
30,894

1
258,966
4,469
7,171

412,649
9,694
11,506

348,539
6,943
8,161

1
359,709
6,935
6,751

2
735,651
6,845
24,369

1
172,292
6,353
5,155

501,515

997,755

910,746 2,646,179

507,336 1,014,883

912,096 2,646,979

()
120,882
5,301
2,749

1
221,336
4,952
5,478

1
226,838
6,495
5,717

1
407,912
11,192
14,262

2,707,593 12,949,829 2,901,543 4,533,718 3,314,020 2,626,958 8,959,156 2,083,156 1,105,894 2,226,526 2,069,924 5,680,279

Total assets.
Liabilities

1,564,411 6,265,783 1,667,665 2,518,185 2,099,429 1,244,399 5,177,136 1,185,628
F. R. notes
Deposits:
761,495 5,319,060 866,163 1,491,107 808,463 958,288 2,911,731 671,269
Member bank reserves.
U. S. Treasurer—general
31,702
46,873
27,099
45,599
48,613
35,795
31,471
account
77,586
18,285
375,209
13,515
Foreign
,
15,105
23,585
11,925
9,805
37,895
9,862
281,845
2,266
Other
436
1,865
1,141
865
1,039

26,639
6,360
485

808,738 5,703,213

Total deposits
Deferred availability
items
Other liabilities

510,624 1,049,680
432,307

941,183 1,562,156

872,857 1,007,149 3,028,251

713,410

465,791

255,020
832

198,906
707

269,521
665

131,411
520

95,281
579

714,514 2,561,358

893,134 1,033,708 2,520,280
47,567
10,335
1,054

42,602
13,780
1,571

54,710
29,680
34,055

952,090 1,091,661 2,638,725

cash

Total liabilities

606,211
3,280

330,932
2,192

311,596
693

556,286
2,466

2,629,001 12,578,487 2,808,461 4,413,465 3,242,472 2,563,837 8,764,139 2,030,969

170,415
587

193,750
660

330,195
1,750

,072,275 2,172,772 2,000,585 5,532,028

Capital Accounts
Capital paid in
Surplus (Sec. 7)
Surplus (Sec. 13b)
Other capital accounts.

17,817
47,013
3,011
10,751

102,652
223,963
7,319
37,408

21,388
55,923
4,489
11,282

32,902
71,550
1,006
14,795

15,874
41,236
3,349
11,089

16,950
36,192
762
9,217

47,610
121,504
1,429
24,474

11,749
31,586
521
8,331

7,543
19,697
1,073
5,306

14,136
30,533
1,137
7,948

19,685
40,871
1,307
7,476

40,574
89,130
2,140
16,407

Total liabilities and capital
2,707,593 12,949,829 2,901,543 4,533,718 3,314,020 2,626,958 8,959,156 2,083,156 1,105,894 2,226,526 2,069,924 5,680,279
accounts
Ratio of gold certificate reserves to deposit and F. R.
note liabilities combined
(per cent)

44.3

Contingent liability on acceptances purchased for
foreign correspondents

8,134

Industrial loan commitments,

50.0

4

46.1

47.7

46.4

40.0

48.5

47.2

44.5

48.2

47.2

48.1

36,956

9,846

12,700

7,278

6,422

20,406

5,280

3,425

5,565

7,420

15,982

7

52

1 After deducting $11,000 participations of other Federal Reserve Banks.
2 Less than $500.
3 After deducting $190,270,000 participations of other Federal Reserve
Banks.




63

940

4
After deducting $102,458,000 participations of other Federal Reserve
Banks.

311

FEDERAL RESERVE BANKS
FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS* ACCOUNTS
[In thousands of dollars]
FEDERAL RESERVE BANKS COMBINED
Wednesday
Item

End of month

1958
Feb. 26

F. R. notes outstanding (issued to Bank).
Collateral held against notes outstanding:
Gold certificate account
Eligible paper
U. S. Government securities

Feb. 19

Feb. 12

1958
Feb. 5

Jan. 29

1957

Feb.

Feb.

Jan.

27,745,074 27,890,647 27,936,244 28,023,411 28,137,602 27,742,068 28,109,074 27,747,268
12,213,000 12,253,000 12,253,000 12,253,000 12,253,000 12,213,000 12,253,000 11,868,000
28,203
44,028
42,158
49,143
44,668
30,088
37,058
108,447
17,165,000 17,165,000 17,165,000 17,165,000 17,165,000 17,165,000 17,165,000 17,090,000

Total collateral

29,422,028 29,446,203 29,460,158 29,448,088 29,467,143 29,415,058 29,462,668 29,066,447

EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1958

Item

Boston

New
York

Philadelphia

Cleveland

Richmond

Atlanta

Chicago

St.
Louis

Minne- Kansas
apolis
City

Dallas

San
Francisco

F. R. notes outstanding
1,663,856 6 ,623,701 1,754,788 2,623,751 2,185,290 1,306,521 5,301,536 ,235,207 534,803 1,072,917 764,196 2,675,502
(issued to Bank)
Collateral held:
Gold certificate acct.. 700,000 3,270,000 640,000 ,130,000 875,000 425,000 2,500,000 450,000 140,000 300,000 283,000 1,500,000
11,480
Eligible paper
8,450
17,128
U. S. Govt. securities. 1,150,000 3,600,000 1,200,000 1,600,000 1,350,000 1,000,000 3,100,000 895,000 425,000 820,000 525,000 1,500,000
Total collateral

1,850,000 6,870,000 1,851,480 2,730,000 2,225,000 1,425,000 5,600,000 1,353,450 565,000 1,137,128 808,000 3,000,000

INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS

LOANS GUARANTEED UNDER REGULATION V1

[Amounts in thousands of dollars]

[Amounts in millions of dollars]

Applications
approved
to date

End of
year or
month

Number
1952
1953
1954
1955
1956

Amount

3,753
3,765
3,771
3,778
3,782

766,492
803,429
818,224
826,853
832,550

3,782
3,782
3,782
3,782
3,782
3,783
3,784
3,784
3,785
3,786
3,786
3,786

833,045
833,692
834,051
834,668
835,264
835,766
836,636
837,410
838,714
840,504
840,814
841,290

3,786

841,691

Participations
A p
Commit- of financ^
proved
Loans
ments
ing instibut not
outoutcomtutions
standing 2 standing
pleted i (amount) (amount)
out(amount)
standing 3
(amount)
1,638
1,951
520
305

End of
year or
month

3,210
3,569
1,148
2,293
2,365

3,289
3,469
1,027
1,103
1,129

1952
1953
1954
1955
1956

822
758
772
780
774
742
608
628
620
586
581
524

2,315
2,014
1,987
1,955
1,794
1,780
1,795
1,815
1,323
1,165
1,130
1,109

1,126
1,017
1,012
991
948
919
812
816
684
1,169
1,126
1,122

Jan
Feb
Mar
Apr
May..
June
July
Aug
Sept
Oct
Nov
Dec

979
805
472
294
389

803
666
368
226
289

586
364
273
170
125

2,823
2,829
2,842
2,850
2,862
• 2,867
2,878
2,880
2,882
2,888
2,906
2,912

401
398
408
402
407
412
412
390
395
398
394
395

298
296
304
300
305
307
307
292
295
300
298
300

120
128
127
133
130
126
123
146
138
124
127
135

535

1,058

1,087

Jan

2,923

380

290

156

Number

Amount

2,124
2,358
2,500
2,575
2,761

[,475
1,481
1,482
1,485
1,488
1,493
1,496
,497
,498
1,498
,500
1,503

,506

Loans
outstanding

Total
amount

1957

80
155
80
760

1958

1958
Jan

Portion
guaranteed

Additional
amount
available to
borrowers
under guarantee agreements
outstanding

,159
,294
,367
,411
,468

3,921
1,900
719
702
794

1957
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

Loans
authorized
to date

1
Includes applications approved conditionally by the Federal Reserve
Banks and under consideration by applicant.
2
Includes industrial loans past due 3 months or more, which are not
included in industrial loans outstanding in weekly statement of condition
of 3Federal Reserve Banks.
Not covered by Federal Reserve Bank commitment to purchase or
discount.
NOTE.—The difference between amount of applications approved and
the sum of the following four columns represents repayments of advances,
and applications for loans and commitments withdrawn or expired.




i Loans made by private financing institutions and guaranteed by Government procurement agencies, pursuant to the Defense Production Act
of 1950. Federal Reserve Banks act as fiscal agents of the guaranteeing
agencies in these transactions, and the procedure is governed by Regulation V of the Board of Governors.
NOTE.—The difference between guaranteed loans authorized and sum
of loans outstanding and additional amounts available to borrowers
under guarantee agreements outstanding represents amounts repaid,
guarantees authorized but not completed, and authorizations expired or
withdrawn.

312

BANK DEBITS
FEES AND RATES ON LOANS GUARANTEED
UNDER REGULATION V*

FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS 1
[In effect February 28. Per cent per annum]

[In effect February 28]
To industrial or
commercial
businesses

Fees Payable to Guaranteeing Agency by Financing
Institution on Guaranteed Portion of Loan

To financing institutions

On discounts or
purchases

Federal
Reserve
Bank
On
loans 2

On
commit- Portion
for which
ments
institution is
obligated

Percentage of
loan guaranteed
On
commitments

Remaining
portion

Guarantee fee
(percentage of
interest payable
by borrower)

70 or less
75

10
15
20
25
30
35
40-50

80

85
90

Boston
New Y o r k . . .
Philadelphia..
Cleveland
Richmond...
Atlanta
Chicago
St. L o u i s . . . .
Minneapolis..
Kansas City..
Dallas
San Francisco

95
Over 95

Percentage of
any commitment
fee charged
borrower

. . . .

10
15
20
25
30
35
40-50

Maximum Rates Financing Institution May Charger Borrower
[Per cent per annum]
4-6

Interest rate
Commitment rate.

4-6

(3)

1

Rates on industrial loans, discounts or purchases of loans, and commitments under Sec. 13b of the Federal Reserve Act. Maturities not
exceeding five years.
2
Including loans made in participation with financing institutions.
3
Rate charged borrower less commitment rate.
* Rate charged borrower. 5 Rate charged borrower but not to exceed
1 per cent above the discount rate.
* Twenty-five per cent of loan rate. Charge of Vi per cent per annum
is made on undisbursed portion.
7 Charge of XA per cent per annum is made on undisbursed portion.

i Schedule of fees and rates established by the Board of Governors on
loans made by private financing institutions and guaranteed by Government procurement agencies, pursuant to the Defense Production Act
of 1950. Federal Reserve Banks act as fiscal agents of the guaranteeing
agencies in these transactions, and the procedure is governed by Regulation V of the Board of Governors.

BANK DEBITS AND DEPOSIT TURNOVER
[Debit in millions of dollars]

Year or month

Debits to demand deposits accounts,
except interbank and
U. S. Government accounts

Annual rate of turnover of demand deposits except
interbank and U. S. Government deposits
Without seasonal adjustment

Total, all
reporting
centers

6
other
centers*

337 other
reporting
centers 2

New
York
City

6
other
centers1

337 other
reporting
centers 2

1,380 112
1,542,554
1,642,853
1,759 069
1,887,366
2,043,548
2,200,643
2,356,768

1950
1951
1952
1953
1954
1955
1956
1957

New
York
City
509,340
544,367
597,815
632,801
738,925
766,890
815,856
888,455

298,564
336,885
349,904
385,831
390,066
431,651
462,859
489,311

572,208
661,302
695,133
740,436
758,375
845,007
921,928
979,002

31.1
31.9
34.4
36.7
42.3
42.7
45.8
49.5

22.6
24.0
24.1
25.6
25.8
27.3
28.8
30.4

Seasonally adjusted 3

17.2
18.4
18.4
18.9
19.2
20.4
21.8
23.0

New
York
City

6
other
centers 1

337 other
reporting
centers 2

1956—Dec

201,876

77,495

40,912

83,469

51.8

29.9

23.3

45.8

28.6

22.1

1957_Jan
Feb
Mar

Sept
Oct
Nov
Dec

204,514
177,536
197,231
192 701
197,257
193,349
200 559
190,539
189 294
204,168
189,246
220 376

76,460
67,035
74,786
72,328
71,780
74,512
74,509
68,409
70,953
77,431
71,667
88,584

42,596
36,886
42,113
40,182
42,128
39,942
41,711
40,194
39,095
41,761
39,012
43,692

85,457
73,615
80,332
80,192
83,349
78,895
84,339
81,936
79,245
84,976
78,567
88,100

48.3
48.9
48.7
46.9
47.1
51.4
49.5
44.7
52.2
49.9
51.2
58.9

30.0
30.2
32.0
30.3
30.5
30.4
30.6
28.5
31.4
29.6
30.5
32.2

22.9
23.0
22.5
22.4
23.2
23.1
23.6
22.1
24.1
22.7
23.5
24.7

48.1
50.2
47.5
47.6
48.3
47.6
50.8
51.7
50.9
51.4
51.7
52.1

30.6
31.0
29.2
29.4
31.0
29.8
31.2
31.1
31.7
30.5
30.0
30.8

22.7
23.1
22.6
23 1
23.7
23.1
24 0
23.5
23 7
22.7
22.3
23 4

1958 Jan
Feb

212,862
181,693

84,355
72,803

41,988
36,185

86,518
72,705

54.6
55.4

30.0
*30.0

23.3
*22.7

54.3
56.8

30.6
*>30.8

23.1
*22.8

Apr

May
June
July .
AUK

* Preliminary.
1
Boston, Philadelphia, Chicago, Detroit, San Francisco, and Los
Angeles.




2

Prior to April 1955, 338 centers.
3 These data are complied by the Federal Reserve Bank of New York.
NOTE.—For description see BULLETIN for April 1953, pp. 355-57.

313

CURRENCY
DENOMINATIONS OF UNITED STATES CURRENCY IN CIRCULATION
[On basis of compilation by United States Treasury.

Total

7,598
11,160
28 515
28 868
27 741
30,433
30 781
30,509
31,158
31,790

5,553
8,120
20,683
20 020
19,305
21,450
21 636
21,374
22,021
22,598

30 614
30,575
30 585
Apr
30,519
May
30,836
31 082
June
July
30,933
Aug . . . . 31 133
Sept
31,073
Oct
31 090
Nov
31,661
Dec
31,834

21 597
21,601
21 639
21,588
21,905
22 123
21,987
22 155
22,088
22 086
22,582
22,626
21,527

1939
1941
1945
1947
1950
1952
1953
1954
1955
1956
1957—Jan

Feb

Mar

1958 Jan

30,576

Large denomination currency

Coin and small denomination currency

Total
in circulation 1

End of year or
month

In millions of dollars]

$12

$2

$5

559
695
1,039
I 048
1,113
1,228
I 249
1,256
1,312
1,369

36
44
73
65
64
71
72
71
75
78

1,019
1,355
2,313
2 110
2,049
2,143
2,119
2,098
2,151
2,196

2,020
2,029
2,042
2,050
2 060
2,069
2 083
2,099
2,110

1,276
1,269
1,270
1,276
301
1', 302
1,292
1,296
1,312
1 330
1,356
1,398

76
75
75
75
76
77
77
78
78
77
78
80

2,061

1,293

78

Coin
590
751

1,274
1 404
1.554
,750
I 812
1,834
1,927
*,027
1,990
991

2'666

Total

$50

$100

$500

1,772 1,576
2,731 2,545
6,782 9,201
6 275 9,119
5,998 8,529
6,561 9,696
6,565 9,819
6,450 9,665
6,617 9,940
6,734 10,194

2,048
3,044
7,834
8,850
8,438
8,985
9,146
9,136
9,136
9,192

460
724
2,327
2,548
2,422
2,669
2,732
2,720
2,736
2,771

919
1,433
4,220
5,070
5,043
5,447
5,581
5,612
5,641
5,704

191
261
454
428
368
343
333
321
307
292

425
556
801
782
588
512
486
464
438
407

20
24
7
5
4
4
4
3
3

32
46
24
17
12
10
11
15
12
14

2,065
2,058
2,063
2,055
2,093
2,102
2,069
2,085
2,084
2,089
2,146
2,188

6,427
6,450
6,473
6,425
6,554
6,615
6,520
6,581
6,533
6,533
6,726
6,662

9,763
9,756
9,758
9,737
9,852
9,985
9,979
10,055
10,013
9 975
10,177
10,187

9,017
8,974
8,946
8,931
8,931
8,958
8,946
8,977
8,984
9,003
9,079
9,208

2,701
2,689
2,679
2,674
2,679
2,696
2,695
2,701
2,696
2 695
2,725
2,777

289
287
286
285
284
283
281
280
279
279
279
280

8

3
3
3
3
4

8
10

6,331

9,721

9,049

2,711

402
400
397
395
393
391
388
388
386
385
386
384
381

3
3

2,044

5,613
5,586
5,573
5,566
5,564
5,575
5,570
5,596
5,611
5,632
5,677
5,752
5,668

$10

1

Outside Treasury and Federal Reserve Banks. Prior to December
1955 the totals shown as in circulation were less than totals of coin and

$20

277

$1,000 $5,000 $10,000

8

8
9
9
8
13
9

4
3
3
3

paper currency shown by denomination by amounts of unassorted currency (not shown separately.)
2
Paper currency only; $1 silver coins reported under coin.

KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION
[On basis of compilation by United States Treasury.

In millions of dollars]

Held in the Treasury
Kind of currency

Gold
Gold certificates
Federal Reserve notes
Treasury currency—total
Standard silver dollars
Silver bullion
Silver certificates and Treasury notes of 1890. . .
Subsidiary silver coin
Minor coin
United States notes
.
Federal Reserve Bank notes
National Bank notes
Total

Jan. 31, 1958
Dec. 31, 1957
Jan. 31, 1957

Total outstanding As security
against
Jan. 31
gold and Treasury
1958
cash
silver
certificates

Jan. 31,
1958

Dec. 31,
1957

Jan. 31,
1957

2,816
2,054
544

32
25,986
4,559

32
27,031
4,771

33
26,051
4,530

22,784
22,136
28,109
5,158

22,136

2647

U,405

69
54

488
2,216
^2,405
1,421
499
347
126
61

189
2,216

30

8

262

263

247

17
3
5

393
87
14
41
1

2,011
1,317
482
301
125
60

2,157
1,358
489
316
126
61

2,035
1,277
466
304
138
63

(5)
(5)

24,541
24,525
23,998

5,414
4,706
5,192

30,576

1
Outside Treasury and Federal Reserve Banks. Includes any paper
currency held outside the continental limits of the United States. Totals
for other end-of-month dates are shown in table above; totals for Wednesday dates, in table on p. 306.
2 Includes $156,039,431 held as reserve against United States notes
and Treasury notes of 1890.
3
To avoid duplication, amount of silver dollars and bullion held as
security against silver certificates and Treasury notes of 1890 outstanding
is not included in total Treasury currency outstanding.
4 Less than $500,000.
5 Because some of the types of currency shown are held as collateral or
reserves against other types, a grand total of all types has no special
significance and is not shown. See note for explanation of duplications.
NOTE.—There are maintained in the Treasury—(1) as a reserve for
United States notes and Treasury notes of 1890—$156,039,431 in gold
bullion; (2) as security for Treasury notes of 1890—an equal dollar amount
in standard silver dollars (these notes are being canceled and retired on




For
F. R.
Banks
and
agents

Currency in circulation l
Held by
F. R.
Banks
and
agents

771
761
809

19,289

19,289
19,269
18,746

31,834
30,614

receipt); (3) as security for outstanding silver certificates—silver in bullion
and standard silver dollars of a monetary value equal to the face amount
of such silver certificates; and (4) as security for gold certificates—gold
bullion of a value at the legal standard equal to the face amount of
such gold certificates. Federal Reserve notes are obligations of the
United States and a first lien on all the assets of the issuing Federal Reserve
Bank. Federal Reserve notes are secured by the deposit with Federal
Reserve agents of a like amount of gold certificates or of gold certificates
and such discounted or purchased paper as is eligible under the terms of
the Federal Reserve Act, or of direct obligations of the United States.
Each Federal Reserve Bank must maintain a reserve in gold certificates of
at least 25 per cent against its Federal Reserve notes in actual circulation. Gold certificates deposited with Federal Reserve agents as collateral, and those deposited with the Treasury of the United States as a
redemption fund, are counted as reserve. Gold certificates, as herein
used, includes credits with the Treasurer of the United States payable
in gold certificates. Federal Reserve Bank notes and national bank
notes are in process of retirement.

314

ALL BANKS
CONSOLIDATED CONDITION STATEMENT FOR BANKS AND THE MONETARY SYSTEM 1
[Figures partly estimated except on call dates.

In millions of dollars]
Liabilities
and Capital

Assets

Other
securities

Total
assets,
netTotal
liabilities
and
capital,
net

Total
deposits
and
currency

Capital
and
misc.
accounts,
net

Bank credit
Date
Gold

Treasury
currency
outstanding

U. S. Government obligations

Total

Commercial
and
savings
banks

Federal
Reserve
Banks

Other

5,741
10,328
23,105
29,049
128,417
107,086
96,560
104,819
96,736
93,161

5,499
8,199
19,417
25,511
101,288
81,199
72,894
77,728
70,052
66,523

216
1,998
2,484
2,254
24,262
22,559
20,778
24,932
24,785
24,915

26
131
1,204
1,284
2,867
3,328
2,888
2,159
,899
,723

11,819
9,863
9,302
8,999
8,577
10,723
14,741
20,439
20,670
20,461

64,698
48,465
75,171
90,637
191,785
188,148
199,009
237,686
244,135
250,757

55,776
42,029
68,359
82,811
180,806
175,348
184,384
218,882
224,943
230,510

8,922
6,436
6,812
7,826
10,979
12,800
14,624
18,806
19,193
20,246

Loans,
net

Total

1929—June 29.,
1933—June 30.
1939—Dec. 30.
1941—Dec. 31.
1945—Dec. 31.
1947_Dec. 31.
1950—Dec. 30.
1954_Dec. 31.
1955—Dec. 31.
1956—Dec. 31.

4,037
4,031
17,644
22,737
20,065
22,754
22,706
21,713
21,690
21,949

2,019
2,286
2,963
3,247
4,339
4,562
4,636
4,985
5,008
5,066

58,642 41,082
42,148 21,957
54,564 22,157
64,653 26,605
167,381 30,387
160,832 43,023
171,667 60,366
210,988 85,730
217,437 100,031
223,742 110,120

1957—Jan. 30.
Feb. 27.
Mar. 27.,
Apr. 24.,
M a y 29.
June 6.
June 26*>,
July 3 1P,
Aug. 2SP,
Sept. 25 P,
Oct. 30?.
Nov. 27",
Dec. 25 P,

22,300
22,300
22,300
22,300
22,600
22,620
22,600
22,600
22,600
22,600
22,700
22,800
22,800

100
100
100
100
100
106
100
100
100
100
100
100
5,100

219,300
218,100
219,000
221,700
221,600
221,454
222,200
222,700
223,200
223,600
225,200
224,800
228,300

108,000
108,200
109,600
110,400
110,700
110,938
113,000
112,200
112,700
113,400
113,000
113,000
114,800

90,800
89,400
88,500
90,200
89,600
89,114
87,800
89,000
88,900
88,400
89,700
89,300
90,800

65,700
64,800
63,800
65,400
65,000
64,548
63,400
64,100
64,000
63,700
65,000
64,400
65,400

23,400
22,900
23,100
23,200
23,000
23,016
22,900
23,400
23,300
23,200
23,200
23,600
24,000

,700
,700
,700
,600
,600
,550
,600
,500
,500
,500
,500
,400
,300

20,400
20,600
20,900
21,100
21,400
21,402
21,400
21,400
21,600
21,800
22,500
22,400
22,700

246,600
245,500
246,400
249,200
249,400
249,180
249,900
250,400
250,900
251,300
253,000
252,700
256,200

226,400
225,100
225,400
228,200
228,200
227,576
229,100
229,300
229,000
229,500
231,100
231,000
235,200

20,300
20,500
20,900
20,900
21,200
21,605
20,900
21,100
21,900
21,900
21,900
21,700
21,100

1958—Jan. 29*>,

22,800

5,200

225,500 112,600

89,800

65,100

23,400

1,300

23,100

253,400

231,500

21,900

Details of Deposits and Currency
Deposits adjusted and currency

U. S. Govt. balances
Date

Foreign
bank
deposits,
net

1929—June 29..
1933—June 30..
1939—Dec. 30..
1941—Dec. 31..
1945—Dec. 31..
1947_Dec. 31..
1950—Dec. 30.,
1954—Dec. 31..
1955—Dec. 31..
1956—Dec. 31.,

365
50
1,217
1,498
2,141
1.682
2,518
3,329
3.167
3,306

1957_j a n . 30.
Feb. 27.,
Mar. 27.,
Apr. 24.
M a y 29.,
June 6.
June 26^
July 3IP
Aug. 28^
Sept. 25?
Oct. 30^
Nov. 27P,
Dec. 25P,

3,100
3,100
3,100
3,200
3,200
3,247
3,400
3,300
3,200
3,300
3.300
3,200
3,300

1958—Jan. 29*>

3,300

At
Treas- comAt
ury mercial
F. R.
cash
and
hold- savings Banks
ings
banks

Time deposits

Total
Total

Demand
Com- Mutual Postal
demercial savings Savings posits 4
banks banks 3 System

Currency
outside
banks

381
204
852
264
846
2,409
2,215 1,895
2,287 24,608
1,336 1,452
1,293 2,989
796 4,510
767 4,038
775 4,038

36
35
634
867
977
870
668
563
394
441

54,790
40,828
63,254
76,336
150,793
170,008
176,916
209,684
216,577
221,950

28,611
21,656
27,059
27,729
48,452
56,411
59,247
75,282
78,378
82,224

19,557
10,849
15,258
15,884
30,135
35,249
36,314
46,844
48,359
50,577

8,905
9,621
10,523
10,532
15,385
17,746
20,009
26,302
28,129
30,000

149 22,540
1,186 14,411
1,278 29,793
1,313 38,992
2,932 75,851
3,416 87,121
2,923 92,272
2,136 106,550
890 109.914
,647 111,391

3,639
4,761
6,401
9,615
26,490
26,476
25,398
27,852
28,285
28,335

800
800
800
800
800
792
800
800
800
800
800
800
800

1,900
2,800
3,800
4,400
5,300
3,625
4,800
3,700
4,400
3,900
3,500
3,300
4.500

600
300
500
300
500
473
500
500
500
600
500
400
300

219,900
218,000
217,200
219,600
218,400
219,439
219,700
221,000
220,000
220,900
223,000
223,300
226,300

82,900
83,600
84,600
84,900
85,700
85,715
86,400
86,700
87,100
87,700
88,100
87,600
88,600

51,200
51,800
52,600
52,900
53,600
53,605
54,000
54,400
54,700
55,100
55,500
55,000
55,500

30,100
30,200
30,400
30,400
30,600
30,647
30,900
30,900
31,000
31,200
31,300
31,300
31,700

,600 109,500
,600 107,000
,600 105,200
.500 107,300
,500 104,800
,463 105,706
,500 105,600
,400 106,600
,400 105,100
,400 105,500
400 107,200
,300 107,200
,300 108,900

27,400
27,400
27,400
27,400
27,900
28,018
27,800
27,800
27,800
27,800
27,800
28,500
28,800

800

2,400

500 224,500 89,700 56,500 31,900

P Preliminary.
1
Represents all commercial and savings banks, Federal Reserve Banks,
Postal Savings System, and Treasury currency funds (the gold account,
Treasury currency account, and Exchange Stabilization Fund).
2
Excludes interbank time deposits; U. S. Treasurer's time deposits,
open account; and deposits of Postal Savings System in banks.
3
Prior to June 30, 1947, includes a small amount of demand deposits.
4
Demand deposits other than interbank and U. S. Govt., less cash
items reported as in process of collection.
5 Seasonally adjusted series begin in 1947 and are available only for
last Wednesday of the month. For back figures, see BULLETIN for July
1957, pp. 828-29.




Seasonally adjusted series5

2

1,300 107,500 27,300

Total
demand
deposits
adjusted
and
currency

Demand
deposits
adjusted

Currency
outside
banks

111,100 85,200 25,900
114,300 89,800 24 ,500
129,700 102,800 26 ,900
133,200 105,800 27
,400
134,400 106,700 27 ,700
134,100
134,500
134,700
135,000
134,600

106,500 27 ,600
,600
106,900 27
107,000 27 ,700
,700
107,300 27
,000
106,600 28

135,200
136,000
134,700
133,900
134,200
134,000
132,900

108,
106,
106,
106,
105,
104,

300 27,900
000 28,000
800 27,900
200 27,700
500 27,700
900 28,100
900 28,000

132,100 104,600 27,500

NOTE.—For description of statement and back figures, see BULLETIN
for January 1948, pp. 24-32. The composition of a few items differs
slightly from the description in the BULLETIN article; stock of Federal
Reserve Banks held by member banks is included in other securities and
in capital and miscellaneous accounts, net, and balances of the Postal
Savings System and the Exchange Stabilization Fund with the U. S.
Treasury are netted against capital and miscellaneous accounts, net,
instead of against U. S. Govt. deposits and Treasury cash. Total deposits
and currency shown in the monthly Chart Book excludes foreign bank deposits, net, and Treasury cash. Except on call dates, figures are rounded
to nearest $100 million and may not add to the totals.

315

ALL BANKS
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER OF ALL BANKS, BY CLASSES 1
[Figures partly estimated except on call dates.

Amounts in millions of dollars]
Deposits

Loans and investments

Class of bank
and date
Total

All banks:
1939—Dec.
1941_Dec.
1945—Dec.
1947_Dec.
1950—Dec.
1955—Dec.
1956—Dec.
1957_j a n .
June
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1958—Jan.

30
31
31
3H
30
31
31
30
6
26*
31*
28*
25?
30*
27*
25*....•
29*

All commercial banks:
1939—Dec. 30
1941_Dec. 31
1945_Dec. 31
1947_Dec. 3H
1950—Dec. 30
1955—Dec. 31
1956—Dec. 31
1957—Jan. 30
June 6
June 26*
July 31*
Aug. 28*
Sept. 25*
Oct. 30*
Nov. 27*
Dec. 25*
1958—Jan. 29*
All member banks:
1939—Dec. 30
1941_Dec. 31
1945—Dec. 31
1947_Dec. 31
1950—Dec. 30
1955—Dec. 31
1956—Dec. 31
1957_j a n . 30
June 6
June 26*
July 31*
Aug. 28*
Sept. 25*
Oct. 30*
Nov. 27*
Dec. 25*
1958—Jan. 29*
All mutual savings banks:
1939—Dec. 30
1941_Dec. 31
1945_Dec. 31
1947_Dec. 314
1950—Dec. 30
1955—Dec. 31
1956—Dec. 31
1957—Jan. 30
June 6
June 26*
July 31*
Aug. 28*
Sept. 25*
Oct. 30*
Nov. 27*
Dec. 25*
1958—Jan. 29*

50,884
61,126
140,227
134,924
148,021
190,780
197,063
194,950
197,465
198,600
198,530
199,250
199,820
201,450
200,910
910
203,640
201,690

Loans

U.S.
Govt.
obligations

Other
securities

Total
assets—
Total
liaCash
bilities
assets 2
and
capital
accounts3

TotaP

Interbank 2

Total
capital
accounts

Demand

Number
of
banks

Time
U.S.
Govt.

Other

22,165 19,417 9,302 23,292 77,068 68,242 9,874
26,615 25,511 8,999 27,344 90,908 81,816 10,982
30,362 101,288 8,577 35,415 177,332 165,612 14,065
43,002 81,199 10,723 38,388 175,091 161,865 13,033
60,386 72,894 14,741 41,086 191,317 175,296 14,039
100,057 70,052 20,670 47,803 242,008 220,441 16,646
'10,079 66,523 20,461 49,641 250,770 227,546 17,595
08,830 65,680 20,440 41,640 240,730 216,040 14,180
111,515 64,548 21,402 40,834 242,647 216,986 14,423
113,810 63,360 21,430 42,250 245,050 219,790 14,380
112,960 64,140 21,430 42,840 245,740 220,640 14,950
113,590 64,040 21,620 42,080 245,850 219,700 14,370
114,260 63,720 21,840 42,040 246,370 220,150 14,800
114,000 64,960 22,490 42,590 248,660 222,030 14,710
114,130 64,390 22,390 43,600 249,150 222,380 14,550
114
115,520 65,390 22,730 45,840 254,020 227,480 15,510
13,490 65,110 23,090 41,930 248,430 222,320 14,950

32,516
44,355
105,935
1,346 94,381
2,809 101,936
3,712 123,239
3,736 125,308
1,620 118,600
3,320 114,659
4,490 115,690
3,390 116,690
4,130 115,150
3,580 115,160
3,180 117,100
3,040 118,190
4,170 120,250
2,150 116,540

25,852
26,479
45,613
53,105
56,513
76,844
80,908
81,640
84,584
85,230
85,610
86,050
86,610
87,040
86,600
87,550

8,194
8,414
10,542
11,948
13,837
18,112
19,249
19,340
19,879
19,760
20,000
20,140
20,210
20,450
20,540
20,570
20,560

15,035
14,826
14,553
14,714
14,650
14.243
14,167
14,163
14,144
14,138
14,135
14,133
14,128
14,113
14,102
14,090
14,081

32,513
44,349
105,921
1,343 94,367
2,806 101,917
3,709 123,187
3,733 125,282
1,620 118,570
3,318 114,633
4,490 115,660
3,390 116,660
4,130 115,120
3,580 115,130
3,180 117,070
3,040 118,160
4,170 120,220
2,150 116,510

15,331
15,952
30,241
35,360
36,503
48,715
50,908
51,560
53,937
54,350
54,710
55,060
55,420
55,780
55,300
55,850
56,750

6,885
7,173
8.950
10,059
11,590
15,300
16,302
16,380
16,837
16,750
16,970
17,090
17,140
17,380
17,440
17,490
17,470

14,484
14,278
14,011
14,181
14,121
13,716
13,640
13,636
13,619
13,613
13,610
13,608
13,603
13,588
13,578
13,567
13,561

11,699
12,347
24,210
28,340
29,336
39,165
40.909
41,434
43,313
43,653
43,901
44,184
44,478
44,740
44,366
44,876
45,592

5,522
5,886
7,589
8,464
9,695
12,783
13,655
13,713
14,058
14,004
14,210
14,300
14,341
14,539
14,584
14,623
14,630

6,362
6,619
6,884
6,923
6,873
6,543
6,462
6,459
6,445
6,438
6,430
6,427
6,421
6,411
6,406
6,393
6,390

10,521
10,527
15,371
17,745
20,009
28,129
30,001
30,080
30,647
30,880
30,900
30,990
31,190
31,260
31,300
31,700
31,930

1,309
1,241
1,592
1,889
2,247
2,812
2,947
2,960
3,042
3,010
3,030
3,050
3,070
3,070
3,100
3,080
3,090

551
548
542
533
529
527
527
527
525
525
525
525
525
525
524
523
520

40,668
50,746
124,019
116,284
126,675
160,881
165,123
162,810
164,515
165,600
165,380
165,900
166,320
167,900
167,270
169,840
167,560

17,238
21,714
26,083
38,057
52,249
82,601
90,302
88,930
91,028
93,280
92,340
92,840
93,400
93,000
93,010
94,280
92,110

16,316
21,808
90,606
69,221
62,027
61,592
58,552
57,710
56,642
55,500
56,280
56,170
55,870
57,280
56,840
57,850
57,570

7,114
7,225
7,331
9,006
12,399
16,688
16,269
16,170
16,845
16,820
16,760
16,890
17,050
17,620
17,420
17,710
17,880

22,474
26,551
34,806
37,502
40,289
46,838
48,720
40,800
39,995
41,380
42,040
41,320
41,260
41,790
42,800
44,900
41,050

65,216
79,104
160,312
155,377
168,932
210,734
217,460
207,290
208,393
210,710
211,310
211,250
211,590
213,840
214,220
218,810
212,940

57,718
71,283
150,227
144,103
155,265
192,254
197,515
185,930
186,308
188,880
189,710
188,680
188,930
190,740
191,050
195,750
190,360

9,874
10,982
14,065
13,032
14,039
16,643
17,593
14,180
14,421
14,380
14,950
14,370
14,800
14,710
14,550
15,510
14,950

941
521
183
846
424
360
768
579
808
848
,573
,010
,315
475
,88!
,239
,122

13,962
18,021
22,775
32,628
44,705
70,982
78,034
76,742
78,448
80,529
79,621
80,103
80,608
80,155
80,097
81,229
79,160

14,328
19,539
78,338
57,914
52,365
50,697
47,575
46,767
45,829
44,808
45,490
45,334
45,007
46,158
45,823
46,812
46,599

5,651
5,961
6,070
7,304
10,355
13,680
13,159
13,070
13,531
13,511
13,462
13,573
13,700
14,162
13,962
14,198
14,363

19,782
23,123
29,845
32,845
35,524
41,416
42,906
35,909
35,270
36,660
37,137
36,594
36,399
36,935
37,862
39,604
36,151

55,361
68,121
138,304
132,060
144,660
179,414
184,874
175,762
176,507
178,816
179,151
179,188
179,283
181,109
181,440
185,467
180,150

49,340
61,717
129,670
122,528
133,089
163,757
167,906
157,485
157,593
160,116
160,652
159,767
159,759
161,229
161,536
165,648
160,793

9,410
10,525
13,640
12,403
13,448
15,865
16,855
13,559
13,736
13,704
14,236
13,681
14,095
14,008
13,841
14,743
14,237

10,216
10,379
16,208
18,641
21,346
29,898
31,940
32,140
32,950
33,000
33,150
33,350
33,500
33,550
33,640
33,800
34,130

4,927
4,901
4,279
4,944
8,137
17,456
19,777
19,900
20,487
20,530
20,620
20,750
20,860
21,000
21,120
21,240
21,380

3,101
3,704
10,682
11,978
10,868
8,460
7,971
7,970
7,906
7,860
7,860
7,870
7,850
7,680
7,550
7,540
7,540

2,188
1,774
1,246
1,718
2,342
3,982
4,192
4,270
4,557
4,610
4,670
4,730
4,790
4,870
4,970
5,020
5,210

818
793
609
886
797
965
920
840
839
870
800
760
780
800
800
940
880

11,852
11,804
17,020
19,714
22,385
31,274
33,311
33,440
34,254
34,340
34,430
34,600
34,780
34,820
34,930
35,210
35,490

10,524
10,533
15,385
17,763
20,031
28,187
30,032
30,110
30,678
30,910
30,930
31,020
31,220
31,290
31,330
31,730
31,960

v Preliminary.
1
All banks in the United States. All banks comprise all commercial
banks and all mutual savings banks. All commercial banks comprise all
nonmember commercial banks and all member banks (including (1) one
bank in Alaska and one in the Virgin Islands that became members on
Apr. 15, 1954, and May 31, 1957, respectively, and (2) a noninsured nondeposit trust company, but excluding three mutual savings banks that
became members in 1941). Stock savings banks and nondeposit trust
companies are included with commercial banks. Number of banks includes a few noninsured banks for which asset and liability data are not




Other

()
(5)

743
1,709
22,179
1,176
2,523
3,327
3,292
1,408
2,932
4,086
3,090
3,715
3,189
2,777
2,681
3,782
1,855

27,489
37,136
69,640
80,609
87,783
105,400
106,850
101,084
97,612
98,673
99,425
98,187
97,997
99,704
100,648
102,247
99,109

available. Comparability of figures for classes of banks is affected somewhat by changes in Federal Reserve membership, insurance status, and
the reserve classifications of cities and individual banks, and by mergers,
etc.
2 Beginning June 30, 1942, excludes reciprocal balances, which on
Dec. 31, 1942, aggregated $513 million at all member banks and $525
million at all insured commercial banks.
3 Includes other assets and liabilities not shown separately.
For other notes see following two pages.

316

ALL BANKS
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER OF ALL BANKS, BY CLASSES i—Continued
[Figures partly estimated except on call dates. Amounts in millions of dollars]
Loans and investments

Class of bank
and date

Total

Central reserve city
member banks:
New York City:
1939 Dec 30
1941—Dec. 31
1945 Dec 31
1947 Dec. 31
195O__Dec. 30
1955 Dec 31
1956—Dec. 31
1957 Jan 30
June
July
Aug
Sept
Oct.
Nov
Dec.
1958—Jan.

26*
31*
28*
25*
30*
27*
25*
29*

... .

Chicago:
1939—Dec. 30
1941 Dec 31
1945—Dec. 31
1947—Dec. 31
1950 Dec 30
1955—Dec. 31
1956—Dec. 31
1957 Jan 30
June 6
June 26*
July 31*
Aug 28*
Sept. 25*
Oct 30*
Nov. 27*
Dec 25*
1958—Jan 29*

9,339
12,896
26,143
20,393
20,612
23,583
23,809
23,101
23,293
23,686
23,182
23,252
23,258
23,385
23,054
23,776
23,181

Loans

U.S.
Govt.
obligations

3,296 4,772
4,072 7,265
7,334 17,574
7,179 11,972
9,729 8,993
14,640 6,796
15,987 6,057
15,665 5,645
15,895 5,738
16,776 5,270
16,006 5,476
16,191 5,298
16 216 5,254
16,115 5,415
15,887 5,423
16,232 5,726
15,501 5,690

Other
secu-

Total
assets—
Total
liaCash
assets 2 bilities
and
capital
accounts3

Deposits
Other
Total2

Interbank 2

Total Numcapital
ber
acof
counts banks

Demand
U. S.
Govt.

Time
Other

1.272
1,559
1,235
1,242
1,890
2,148
1,765
1,791
1,660
1,640
1,700
1,763
1,788
1,855
1,744
1,818
1,990

6,703
6,637
6,439
7,261
7,922
8,948
8,629
7,046
6,692
7,384
7,470
7,701
6 984
7,539
7,700
7,515
7,134

16,413
19,862
32,887
27,982
28,954
33,228
33,381
31,151
30,993
32,053
31,685
32,144
31 403
32,103
31,921
32,418
31,612

14,507
17,932
30,121
25,216
25,646
29,378
29,149
26,497
26,322
27,565
26,981
27,070
26,182
27,030
26,935
27,176
26,600

4,238
4 207
4,657
4 464
4,638
5,600
5,987
4,927
5,033
5,158
5 233
4,945
5 108
5,119
5,148
5,105
5,328

74
866
5,940
267
451
756
747
188
688
938
726
737
535
500
443
810
266

9,459
12,051
17,287
19 040
18,836
20,719
19,940
18,905
17,836
18,722
18,320
18,698
17 778
18,648
18,591
18,428
18,081

736
807
1,236
1 445
1,722
2,303
2,475
2,477
2,765
2,747
2 702
2,690
2 761
2,763
2,753
2,833
2,925

1,592
1,648
2,120
2 259
2,351
2,745
2 873
2,878
2 907
2,909
3 061
3,059
3 054
3,127
3,133
3,131
3,152

36
36
37
37
23
18
18
18
18
18
18
18
18
18
18
18
18

495
476
719

14
13
12
14
13
13
14
14
14
14
14
14
14
14
14
14
14
346
351
359
353
336
292
289
290
282
282
282
282
281
281
c
280
«279
278

2,105
2,760
5,931
5,088
5,569
6,542
6,473
6,120
6,266
6,293
6,234
6,289
6,261
6,273
6,275
6,404
6,211

569
954
1,333
1,801
2,083
3,342
3,772
3,494
3,789
3,893
3,862
3,915
3,937
3,829
3,781
3,851
3,600

1,203
1,430
4,213
2,890
2,911
2,506
2,113
2 074
1,884
,847
,825
,823
1,783
[,888
.927
U996
2,050

333
376
385
397
576
695
588
552
593
553
547
551
541
556
567
557
561

1,446
1,566
1 489
1,739
2,034
2 132
2,171
1 905
1 821
1,912
1 947
1,968
1 939
1,969
1 938
2,016
1,862

3,595
4,363
7,459
6,866
7,649
8.720
8,695
8,077
8,147
8,258
8,239
8,314
8,257
8,310
8,285
8,484
8,137

3,330
4,057
7,046
6,402
7,109
8,010
7,943
7,280
7,284
7,407
7,462
7,440
7,319
7,264
7,320
7,489
7,291

888
1,035
I 312
1,217
1,229
1,296
1,372
1,125
1,184
1,153
I 279
1,185
I 251
[,183
[ 145
1,192
170

80
127
I 552
72
174
222
184
68
97
305
196
275
186
148
151
236
86

1,867
2,419
3 462
4,201
4,604
5,165
5,069
4,784
4,691
4,630
4,676
4,674
4,573
4,624
4 708
4,719
4,695

1,103
1,327
1,319
1,303
1,312
1,319
1,311
1,306
1,309
1,309
1 316
1,342
1,340

250
288
377
426
490
628
660
660
665
663
671
671
670
679
685
685
688

Reserve city member banks:
1939 Dec 30
1941—Dec. 31
1945—Dec. 31
1947 Dec 31
1950—Dec. 30
1955—Dec. 31
1956 Dec 31
1957—Jan. 30
June 6
..
June 26*
July 31*
Aug 28*
Sept. 25*
Oct. 30*
Nov 27*
Dec. 25*
1958—Jan. 29*

12,272
15,347
40,108
36,040
40,685
52,459
53,915
52,978
53 137
53,649
53,785
53,831
53,881
54 109
54,201
55,287
54,294

5,329
7,105
8,514
13,449
17,906
28,622
31,783
31,234
31,435
32,168
32,104
32,259
32,576
32,261
32,510
32,943
32,076

5,194
6,467
29,552
20,196
19,084
18,826
17,368
17,056
16,797
16,529
16,798
16,696
16,372
16,755
16,669
17,251
17,156

1,749
1,776
2,042
2,396
3,695
5,011
4,764
4,688
4,905
4,952
4,883
4,876
4,933
5,093
5,022
5,093
5,062

6,785
8 518
11 286
13,066
13,998
16 994
17,716
14 802
14 532
15,150
15 079
14,683
14,930
14 899
15,500
16,564
14,715

19,687
24,430
51,898
49,659
55,369
70,478
72,854
69,034
68,965
70,083
70,164
69,808
70,128
70,389
71,106
73,243
70,471

17,741
22,313
49,085
46,467
51,437
64,733
66,524
62,111
61,796
62,886
63,225
62,521
62,870
62,963
63,556
65,968
63,244

3,686
4,460
6 448
5,649
6,448
7 446
7,878
6,224
6 228
6,138
6,373
6,248
6,408
6 367
6,203
6 961
6,364

435
491
3 221
405
976
1,288
1,201
474
I 051
1,634
1,264
1,453
1,274
918
1,017
1,569
610

9,004
12,557
24,655
28,990
32,366
39,835
40,647
38,393
36,874
37,276
37,671
36,820
37,103
37,483
38,159
38,993
37,591

4,616
4,806
9,760
11,423
11,647
16,164
16,797
17,020
17,642
17,838
17,917
18,000
18,085
18,195
18,177
18,445
18,679

1,828
1,967
2,566
2,844
3,322
4 641
5,076
5,082
5 182
5,195
5,199
5,242
5,260
5 298
5,338
5,357
5,394

Country member banks:
1939—Dec. 30
1941—>Dec. 31
1945—Dec 31
1947—Dec. 31
1950—Dec. 30
1955—Dec 31
1956—Dec. 31
1957 Jan 30
June 6 . .
June 26*
July 31*
Aug. 28*
Sept. 25*
Oct. 30* . .
Nov. 27*
Dec 25*
1958—Jan. 29*

10 224
12,518
35,002
36 324
40,558
52,775
54 571
54,380
55 112
55,220
55,372
55 638
55,915
56 708
56,352
56,772
56,436

4,768
5,890
5,596
10,199
14,988
24,379
26,491
26,349
27,330
27,692
27,649
27,738
27,879
27,950
27,919
28,203
27,983

3,159
4,377
26,999
22,857
21,377
22,570
22,037
21,992
21,409
21,162
21,391
21,517
21,598
22,100
21,804
21,839
21,703

2,297
2,250
2,408
3,268
4,193
5,826
6,042
6,039
6,373
6,366
6,332
6,383
6,438
6,658
6,629
6,730
6,750

4 848
6,402
10,632
10 778
11,571
13,342
14,390
12,156
12 224
12,214
12,641
12,242
12,546
12 528
12,724
13,509
12,440

15,666
19,466
46,059
47,553
52,689
66,988
69,945
67,500
68,404
68,422
69,063
68,922
69,495
70,307
70,128
71,322
69,930

13,762
17,415
43,418
44,443
48,897
61,636
64,289
61,597
62,192
62,258
62,984
62,736
63,388
63,972
63,725
65,015
63,658

1,223
1,073
1,133
[,523
[,618
1,283
1,290
1,255
1,351
1,303
,328
,339
,345
485
,375

154
225
5,465
432
922
1,061
1,160
678
I 097
1,209
904
1,250
1,194
1,211
1,070
,167
893

7 158
10,109
24,235
28 378
31,977
39,681
41,194
39,002
38 211
38,045
38,758
37,995
38,543
38 949
39,190
40,107
38,742

5 852
6,258
12,494
14,560
14,865
19,372
20,317
20,634
21 594
21,749
21,971
22,188
22,323
22 473
22,120
22,256
22,648

1 851 5,966
1,982 6,219
2,525 6,476
2 934 6,519
3,532 6,501
4,769 6,220
5 046 6,141
5,093 6,137
5 304 6,131
5,237 6,124
5,279 6,116
5 328 6,113
5,357 6,108
5 435 c 6,098
5,428 6,094
5,450 *6,082
5,396 6,080

4
Beginning with Dec. 31, 1947, the all-bank series was revised as announced in November 1947 by the Federal bank supervisory agencies.
At that time a net of 115 noninsured nonmember commercial banks
with total loans and investments of about $110 million was added, and
8 banks with total loans and investments of $34 million were transferred




•

598
822
•

913

from noninsured mutual savings to nonmember commercial banks.
5 Less than $5 million. Because preliminary data are rounded to the
nearest $10 million no amount is shown except on call dates.
For other notes see preceding and opposite pages.

317

ALL BANKS
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER OF ALL BANKS, BY CLASSES i—Continued
[Amounts in millions of dollars]
Loans and investments

Class of bank
and date
Total

All insured commercial banks:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

Loans

U. S.
Govt.
obligations

Other
securities

Total
assets—
Total
liaCash
bilities
assets 2
and
capital
accounts 3

Deposits
Other
Total 2

21,046
88,912
67,941
60,765
55,835
57,837
55,973

6,984
7,131
8,750
16,318
16,136
15,933
16,481

25,788
34,292
36,926
46,480
42,126
48,352
39,713

76,820
157,544
152,733
208,608
203,676
215,514
206,567

69,411
147,775
141,851
190,512
184,680
195,953
184,860

National member banks:
1941_Dec. 31
1945—Dec. 31
1947—Dec. 31
1955—Dec. 31
1956—June 30
Dec. 31
1957_june 6

27,571
69,312
65,280
86,152
85,455
88,477
87,910

11,725
13,925
21,428
43,428
45,860
48,109
48,415

12,039
51,250
38,674
33,579
30,555
31,568
30,345

3,806
4,137
5,178
9,144
9,040
8,800
9,150

14,977
20,114
22,024
25,697
23,545
27,006
22,525

43,433
90,220
88,182
113,412
110,703
117,345
112,460

39,458
84,939
82,023
103,903
100,826
107,161
100,989

State member banks:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

15,950
37,871
32,566
49,208
48,973
50,291
49,898

6,295
8,850
11,200
27,554
28,923
29,924
30,034

7,500
27,089
19,240
17,118
15,671
16,007
15,483

2,155
1,933
2,125
4,536
4,379
4,359
4,381

8,145
9,731
10,822
15,719
13,992
15,900
12,745

24,688
48,084
43,879
66,002
64,117
67,530
64,047

Insured nonmember
commercial banks:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

5,776
14,639
16,444
23,829
23,942
24,859
25,243

3,241
2,992
4,958
11,108
11,600
11,808
12,134

1,509
10,584
10,039
10,081
9,621
10,274
10,156

1,025
1,063
1,448
2,640
2,720
2,777
2,953

2,668
4,448
4,083
5,067
4,592
5,448
4,446

1,457
2,211
2,009
1,716
1,664
1,521
1,490

455
318
474
520
513
471
457

761
1,693
1,280
827
785
714
669

241
200
255
370
365
336
364

All nonmember commercial
banks:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 314
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

7,233
16,849
18,454
25,546
25,605
26,381
26,733

3,696
3,310
5,432
11,628
12,114
12,279
12,591

2,270
12,277
11,318
10,908
10,406
10,989
10,825

Insured mutual savings banks:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

1,693
10,846
12,683
22,331
23,168
24,170
25,185

642
3,081
3,560
13,563
14,514
15,542
16,228

8,687
5,361
5,957
7,567
7,898
7,770
7,765

4,259
1,198
1,384
3,893
4,125
4,235
4,259

For other notes see preceding two pages.




Number
of
banks

Time

21,259
25,765
37,583
82,081
86,374
89,831
90,571

Noninsured mutual savings
banks:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 3H
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

Total
capital
accounts

Demand
U. S.
Govt.

49,290
121,809
114,274
159,164
158,344
163,601
163,025

Noninsured nonmember
commercial banks:
1941_Dec. 31
1945—Dec. 31
1947—Dec. 3H
1955—Dec. 31
1956—June 30
Dec. 31
1957—June 6

Interbank 2

Other

10,654 1,762
41,298 15,699 6,844 13,426
13,883 23,740
80,276 29,876 8,671 13,297
12,670 1,325
92,975 34,882 9,734 13,398
16,273 3,697 122,149 48,393 14,980 13,216
14,862 5,221 114,892 49,705 15,600 13,208
17,282 3,717 124,346 50,608 15,988 13,195
14,095 3,310 113,812 53,643 16,525 13,189

6,786 1,088
9,229 14,013
8,410
795
9,317 2,063
8,404 2,929
9,844 2,074
7,963 1,782

23,262
45,473
53,541
65,840
62,123
67,434
61,737

8,322
16,224
19,278
26,683
27,370
27,810
29,506

3,640
4,644
5,409
7,915
8,232
8,450
8,722

5,117
5,017
5,005
4,692
4,667
4,651
4,647

22,259
44,730
40,505
59,854
57,563
60,744
56,605

3,739
4,411
3,993
6,549
6,104
7,012
5,773

621
8,166
381
1,264
1,877
1,218
1,150

13,874
24,168
27,068
39,559
36,781
39,416
35,874

4,025
7,986
9,062
12,482
12,801
13,098
13,807

2,246
2,945
3,055
4,868
5,061
5,205
5,337

1,502
1,867
1,918
1,851
1,832
1,811
1,798

8,708
19,256
20,691
29,220
28,884
30,667
30,088

7,702
18,119
19,340
26,779
26,316
28,073
27,292

129
244
266
408
355
427
359

53
1,560
149
370
415
425
378

4,162 3,360
10,635 5,680
12,366 6,558
16,749 9,252
15,988 9,558
17,497 9,724
16,200 10,355

959
1,083
1,271
2,199
2,309
2,336
2,469

6,810
6,416
6,478
6,677
6,713
6.737
<
5,748

763
514
576
357
318
369
282

2,283
2,768
2,643
2,126
2,036
1,946
1,825

1,872
2,452
2,251
1,742
1,646
1,562
1,448

329
181
363
370
377
310
326

253
365
478
322
326
300
294

329
279
325
320
326
313
312

852
714
783
499
470
444
429

1,266
1,262
1,703
3,010
3,085
3,113
3,317

3,431
4,962
4,659
5,424
4,909
5,817
4,728

10,992
22,024
23,334
31,347
30,920
32,613
31,913

9,573
20,571
21,591
28,522
27,962
29,635
28,740

457
425
629
778
732
737
685

5,504
3,613
14,101
6,045
167 13,758 7,036
382 17,788 9,574
426 16,920 9,884
440 18,433 10,024
385 17,021 10,649

1,288
1,362
1,596
2,519
2,636
2,649
2,781

7,662
7,130
7,261
7,176
7,183
7,181
7,177

629
7,160
8,165
5,858
5,636
5,518
5,505

421
606
958
2,910
3,018
3,110
3,452

151
429
675
785
739
739
672

1,958
11,424
13,499
23,458
24,271
25,282
26,241

1,789
10,363
12,207
21,237
21,959
22,886
23,578

1,789
10,351
12,192
21,182
21,930
22,857
23,549

164
1,034
1,252
2,006
2,061
2,130
2,240

52
192
194
220
220
223
234

3,075
3,522
3,813
2,601
2,661
2,453
2.401

1,353
641
760
1,072
1,112
1,082
1,105

642
180
211
180
178
182
167

9,846
5,596
6,215
7,816
8,150
8,028
8,013

8,744
5,022
5,556
6,950
7,225
7,146
7,100

8,738
5,020
5,553
6,947
7,222
7,143
7,098

1,077
558
637
806
824
817
802

496
350
339
307
307
304
291

1,291
1,905
18
1,392
12
1,039
11
932
16
936
821

12

NOTE.—For revisions in series prior to June 30, 1947, see BULLETIN
for July 1947, pp. 870-71.

318

COMMERCIAL BANKS
LOANS AND INVESTMENTS OF COMMERCIAL BANKS, BY CLASSES 1
[In millions of dollars]
Investments

Loans 2

Class of bank
and
call date

Total
loans
and
invest- Total 2
ments

U. S. Government obligations
Loans for
ComOblipurchasing
mergaor carrying
cial,
Other
tions
Direct
in- Agri- securities
loans
of
Real
clud- culto
States Other
ing
in- Other Total
and secuCertifiGuar- polit- rities
To
tate
loans
open tur- brokdicates
anal
Total
marTo loans vidical
of in- Notes Bonds teed subers othket
uals
Bills debtand ers
padivieddealper
sions
ness
ers

All commercial
banks: 3
1947_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .
1957—June 6....
Oct. I I 8 . . .

116,284 38 ,057 18,167 1,660
830 1,220 9,393 5,723 1,063 78,226 69,2212,193
,
,
" " 61,592
160,881 82,601 33,245 4J475 3,263 1J774 20,809 17,185 3 117 78,280 6 1 , " " 4,219
1,691
58,
,924
165,123 90,302 38,720 4,161 2,589 1,691 22,509 18,850 3
91,028 39,020 4,077 2274 1,634 22,530 19,508 3 623 73,487 56,642 4,761
2J274 1634
167,'530 93,140 40J010 4^30 2,'45O 1^590 22^970 "",090 3 660 74,390 57,210 4,860
20

All insured commercial banks:
1941_Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .
1957—June 6....

49, 290 21,259
...
121,809 25,765
274
114,""' 37,583
159, 164 82,081
163,601 89,831
163,025 90,571

9,,214 1 ,450 614 662 4,773
9,461 1,314 3,164 3,606 4,677
"
18,012 1,610 823 1,190 9,266
,_
33,092 4,396 3 ,229 742 20,692
38,5714,1012,565 ;669 22 ,394
2,565
38,870 4,027 2,251 1,613 22,427

4,545
28,031 21,046 988
2,361 1,181 96,043 88,912 2 ,455
912
5,654 1,028 76,691 67,941 2,124
17,104 3,091 77,083 60,"'" 4 ,105
765
18,765 3,325 73,770 57,837 5,763
19,421 3,599 72,454 55,9734,658

Member banks,
total:
1941_Dec. 31....
1945_Dec. 31....
1947_Dec. 31....
1955—Dec. 31....
1956—Dec. 31....
1957—June 6....
Oct. 11....

43,521
107,183
97,846
135,360
138,768
137,808
140,338

18,021
22,775
32,628
70,982
78,034
78,448
,
80308
80,308

8,671 972 594 598
8,949 855 3,133 3,378
16,962 1 ,046 ___ ',065
6,
1,046 811
"'
3101
31,019 2,726 3,150 ,560
726
36,296 2,478 2,447 ,473
36,500 2,453 2,132 ,416
,
,453
37504 2411 2,272 ,370
37,504 2,411

3,692
25,500 19,539 971
1,900 1,104 84,408 78,338 2,275 16,985
4,662 952 65,218 57,914 1,987 5,816
14,313 2,943 64,377 50,697 3,250 1,738
15,765 3,147 60,734 47,575 4,383 1,469
16,229 3,399 59,360 45,829 3,439 2,798
16,682 3,432 60,030 46,241 3,377 3,517

New York City:41941_Dec. 3 1 . . . .
1945_Dec. 3 1 . . . .
1947_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . ,
1956—Dec. 3 1 . . . ,
1957_June 6....
Oct. 1 1 . . . .

12,896
26,143
20,393
23,583
23,809
23,293
23,277

4,072
7,334
7,179
14,640
15,987
15,895
16,067

2,807
3,044
5,361
9,126
11,266
11,344
11,717

2,760
5,931
5,088
6,542
6,473
6,266
6,298

954
1,333
1,801
3,342
3,772
3,789
3,897

732
760
1,418
2,390
2,781
2,859
2,981

Reserve city banks,
1941_Dec. 3 1 . . . .
1945_Dec. 3 1 . . . ,
1947_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .
1957—June 6....
Oct. 1 1 . . . .

15,347 7,105
40,108 8,514
36,040 13,449
28,622
52,459 28
53,915 31,783
"',435
53,137 31
54,198 32 ,364

3,456
3,661
7,088
13,212
15,170
14,919
15,378

Country banks:
1941—Dec. 3 1 . . . .
1945_Dec. 3 1 . . . .
1947_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .
1957—June 6....
Oct. 1 1 . . . .

12,518 5,890
35,002 5,596
36,324 10,199
52,775 24,379
54,571 26,491
27,330
55,112 27
56,565 27,980

Chicago:4'
1941_Dec.
1945—Dec.
1947_Dec.
1955—Dec.
1956—Dec.
1957—June
Oct.

31....
31....
31....
31....
31....
6
11....

3,494
3,455
7,130
16,391
17,811
17,768
18,103

412 169
2,453 1,172
545 267
17 2,144 511
' 1,409 402
1,152 389
1,115 361

123
80
111
577
617
567
591

287
564
1,506
1,558
1,516
1,513

52
233
87
99
97
96
98

22
36
46
128
134
135
141

51
149
316
439
430
423

48
211
73
275
203
172
164
300
205
225
566
489
495
502

554

8,823
298 18,809
330 13,214
,006 8,943
,049 7,822
1,245 7,398
1,085 7,210

1,806
4,598
3,287
3,200
2,701
2,477
2,402

6,034 53,191
14,034 41,010
11,823 38,796
10,070 38,137
4,670 10,060 37,610

3,159 1
12,797
"',321
19,071 16,045 5i;
,334
7,552 5,918 52,
292
2,292 13,856 40,502
,358
1,981
967 37,730
3,610

,102
22
14
10
13

3,651 3,333
3 , 873 ",258
— 3
5, 129 3 ,621
12, 465 3 ,853
12, 675 3,258
13,'095 3,386

3,007 11,729 3,832
14,271 44,792
16
",286
10
4,815 45
9
11,508 34 ,192
12
9,493 32,218
"',632
7,952 31
8,055 31 ,285

090 2,871
254 2 ,815
199 3 ,105
4443 ,236
494 2 ,665
768 2 ,763
086 2,703

1,623 3,652 1,679
7,265 311
729
17,574 477 3,433 3,325 10,337
1
606
558 9,771
640
11,972 1,002
638
100 1,141 5,002
6,796 552
1,609
976 4,160
194
6,057 724
1,406
781 4,052
219
5,738 685
1,311
163 1,046 3,889
5,420 321
1,447

1,430
4,213
2,890
2,506
2,113
1,884
1,869

903
153
749 1,864
248 2,274
604 1,723
316 1,643
223 1,513
278 1,483

119

182
181
213
476
440
460
396

830
629
604
539
358
349
342
193
204
185
219
148
133
137

256
133
132
111
112
75
36

1,467
235
68
42
74
72

194 1,527
8,243 6,467 295
1,512
114
404 31 i594 29,552 1,034
855
427 1,503 1,459
170 484 3,147 1,969 366 22 ,591 20,196 373
696 6,962 5,916 1,180 23,837 18,826 813
542
712 7,654 6,512 1,289 22,132 17,368 1,185
501
672 7,481
i 630 1,300 21,702 16,797 758
496
659 7,533 6,801 1,447 21,834 16,893 752
610

6,982
2,358
657
441
1,179
1,322

751
5,653
1,901
4,708
3,742
3,038
3,039

4,248 1,173
956 820
15,878
916
5 1,126
15,560
3 1,342 1,053
12,643
5 3,778 1,233
11,995
4 3,820 944
11,819
3 3,888 ,017
11,778
2 3,980 961

5,102
2,583
913
792
1,326
1,960

481
4,544
2,108
5,056
4,458
3,910
3,691

2,926
16,713
17,681
14,825
14,420
14,248
14,135

95
40
26
184
178
184
182

1,676 659
1,484 648
3,096 818
6 , 290 2 ,127
—
7,' 080 1,972
7,378 1,949
7,427 1,902

20
42
23
189
334
312
382

183
471
227
255
261
259
252

1,823
1,881
3,827
8,723
9,407
9,586
9,838

6,628 4,377 110
1,530
363 29,407 26,999 630
707
1,979 229 26,125 22,857 480
6,575 573 28',397 22,5701,774
7,256 631 28,080 22,037 2,362
— 1,920
7,653
7,945 718 28,585 22;058 2,268

Nonmember com-3
mercial banks:
1947_Dec. 3 1 . . . . 18,454 5,432 1,205 614
1955—Dec. 3 1 . . . . 25,546 11,628 2,226 ,750
1956—Dec. 3 1 . . . . 26,381 12,279 2,424 1,683
1957_June 6.... 26,733 12,591 2,519 1 ,625

20
113
143
143

156
214
218
219

2,266
4,428
4,708
4,773

1,061
2,872
3,085
3,278

• Estimated.
1
All commercial banks in the United States. These figures exclude
data for banks in U. S. possessions except for one bank in Alaska and
one in the Virgin Islands that became members on Apr. 15, 1954, and
May 31, 1957, respectively. During 1941 three mutual savings banks
became members of the Federal Reserve System; these banks are included in member banks but are not included in all insured commercial
banks or all commercial banks. Comparability of figures for classes of




5, 276 3,729
12, 698 3 ,990
12,901 3,368
314 ",531
13," " 3
13, 700 3 ,470

7,789
2,318
1,997
.....
3,665

111 13,021
174 13,918
196 14,102
224 14,141

11,318 206 1,973 1,219 7,916
10,908 970
580 2,527 6,829
10,989 1,541
528 2,330 6,588
10,825 1,323
867 2,119 6,515

861
9
6
3
4
4
4

1,222 1,028
1,""" 1
342 ',067
006 1 ,262
2,'
4,581 1,246
827 1,215
4,827 1
5,109 1,265
5,263 1,263

1,078
2,255
2,409
2,548

625
755
704
769

banks is affected somewhat by changes in Federal Reserve membership,
insurance status, and the reserve classifications of cities and individual
banks, and by mergers, etc.
2 Beginning June 30, 1948, figures for various loan items are shown
gross (i. e., before deduction of valuation reserves); they do not add to the
total and are not entirely comparable with prior figures. Total loans
continue to be shown net.
For other notes see opposite page.

319

COMMERCIAL BANKS
RESERVES AND LIABILITIES OF COMMERCIAL BANKS, BY CLASSES 1
[In millions of dollars]
Time deposits

Demand deposits
Class of bank
and
call date

BalDeserves
with Cash ances mand
with
deFederal in
doRevault mestic posits
adserve
banks* justed 6
Banks

Interbank
deposits
DoFormestic 5 eign

CertiStates
fied
and
and
U.S.
offiGovt. political cers'
subdivisions checks,
etc.

11,362
13,512
14,338
11,247
11,910

IndiIndiU.S. States viduals, Bor- Capividuals,
tal
and
partner- Inter- Govt. polit- partner- row- acings
and
ships, bank postal ical
ships,
counts
and corSav- subdi- and corporaings visions porations
tions

All commercial
banks: 3
1947—Dec.
1955—Dec.
1956—Dec.
1957—June
Oct.

31....
31....
31....
6....
11«...

17,796
18,721
18,706
18,500
19,200

2,216
2,682
3,261
2,737
2,500

1,343 6,799
3,709 10,273
3,733 10,449
3,318 10,603
3,980 9,760

84,987
240
3,904 109,011 1,585
3,785 111,048 1,460
2,852 101,177 1,556
2,570 104,340 1,470

356
330
331
330

All insured commercial banks:
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .
1957—June 6 . . . .

12,396
15,810
17,796
18,721
18,706
18,500

1,358 8,570 37,845 9,823
673 1,762 3,677
1,829 11,075 74,722 12,566 [,248 23,740 5,098
2,145 9,736 85,751 11,236 1,379 1,325 6,692
2,656 11,744 108,887 13,390 1,516 3,697 10,138
3,237 12,490 110,487 14,226 1,755 3,717 10,350
2,717 9,515 104,904 11,127 1,581 3,310 10,500

1,077 36,544
158
2,585 72,593
70
2,559 83,723
54
3,879 108,131 1,367
3,744 110,252 1,301
2,829 100,483 1,388

15,146
10
29,277 215
33,946
61
356 2,282 45,756
145
330 2,329 47,949
56
331 2,652 50,660 1,430

Member banks,
total:
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .
1957—June 6 . . . .
Oct. 1 1 . . . .

12,396 1,087
15,811 1,438
17,797 1,672
18,722 2,019
18,707 2,487
18,501 2,065
19,203 1,889

6,246
7,117
6,270
7,612
8,124
5,931
6,586

3,066
4,240
5,504
8,075
8,211
8,371
7,634

1,009
2,450
2,401
3,638
3,475
2,616
2,366

50
99
105

93

141
78

319
237
290
302
286
261
266

1,338
1,105
1,498
1,172

10,216
12,050
12,813
9,761
10,800

87,123
109,905
111,405
105,713
106,370

1,430
1,546
1,794
1,618
1,820

33,754
64,184
73,528
92,435
93,320
88,912
89,101

9,714
12,333
10,978
13,002
13,818
10,799
11,450

671 1,709
1,243 22,179
1,375 1,176
1,511 3,327
[,749 3,292
1,568 2,932
1,760 3,575

10,761
15,065
70 16,653
111 16,493
99 15,974
45 15,450
39 14,892

3,595
3,535
3,236
3,364
3,622
2,775
2,777

1,105 6,940
267
1,217
756
1,151
747
1,400
688
1,249
878
1,444

298
200

1,027
1,292
1,196
1,246
1,318
1,133
1,186

2,581

33,061
62,950
72,704
93,687
95,163
86,624
89,136

140
64
50
1,353
1,289
1,369
1,277

111

59

103
111

327
301
302
292

866
2,340
2,384
2,712
2,730

34,383
65 10,059
46,019 159 15,300
48,193
75 16,302
50,893 1,446 16,837
52,570 1,790 17,300

492
496
826

6,844
8,671
9,734
14,980
15,988
16,525

4 5,886
418 11,878
399 23,712 208 7,589
693 27,542
54 8,464
1,865 36,972 137 12,783
48 13,655
1,839 38,769
2,128 40,883 1,374 14,058
2,128 42,253 1,759 14,467

New York City:*
1941—Dec.
1945—Dec.
1947—Dec.
1955—Dec.
1956—Dec.
1957_june
Oct.

31
31....
31....
31....
31....
6....
11....

5,105
4,015
4,639
4,431
4,375
4,080
4,361

31
31
31....
31....
31....
6....
11....

1,021
942
1,070
1,135
1,158
1,089
1,141

43

4,060
6,326
7,095
7,727
7,649
7,701
7,997

111
151
127
161
143
116

607

866

450

914
862

6
11 282
15,712
17
12
17,646
18,919 1,085
965
18,482
16,660 1,009
931
16,341

10

12

29
20
14

59
36
36
32

44
67
75

2
6
5
4

9
8
12
10

14

3

10

104
30
22

778
1,648
1,206 "195 2,120
30 2,259
1,418
1 2,745
2,171
2 2,873
2,395
2,662 326 2,907
2,656 683 3,063

243
160
332
941
935

72

Chicago:*
1941—Dec.
1945—Dec.
1947—Dec.
1955—Dec.
1956—Dec.
1957_jUne
Oct.

32

175
141

37
28
29

174
95
96

2,215
3,153
3,737
4,349
4,272
4,087
3,905

425
494

2,590
2,174
2,125
2,515
2,656
1,825
1,862

11,117
22,372
25,714
33,757
34,046
32,549
32,473

4,302
6,307
5,497
6,903
7,298
5,648
6,113

1,222
1,502
1,241
1,164

3,216
4,665
3,900
4,844
5,194
3,966
4,589

9,661
23,595
27,424
37,836
39,028
36,827
37,830

1,199
1,049
1,488
1,580
1,243
,374

544
663
774
672

3,947
4,439
4,690
3,831

13,595
17,470
18,085
16,801

510
521
448

36
30

8

20
21
40
46
35
39

127

1,552

233
237

72
222
184
97
183

285

491

1,144
1,763
2,282
3,048
3,092
2,911
2,570

299
294
459
350

34
66
63
85
85
80
67

2,152
3,160
3,853
4,781
4,690
4,152
4,164

286
611

11,127
22,281
26,003
35,752
36,519
33,177
34,381

239
294
314
311

20
38
45
106
114
120
119

8,500
21,797
25,203
34,235
35,473
32,635
34,249

30
17
17
18
22
30
21

31
52
45
157
146
142
138

12,284
15,324
15,885
14,553

190
231
171
187

29

11
7

16

476
719
902

2&8

1,313 "**3
4
1,302
1,298 101
205
1,297

377
426
628
660
665
676

Reserve city banks:
1941—Dec.
1945—Dec.
1947—Dec.
1955—Dec.
1956—Dec.
1957—June
Oct.

31....
31....
31....
31....
31....
6....
11....

562

638
787
653
580

54
110

131

8,221
405

303
286
266
259

1,288
1,201
1,051
1,297

2
8
7
17
16
18
17

225
5,465

55
36
45
50

705
1,035
1,036
787
668

4,542
9,563
11,045
15,117
15,748
1,089 16,432
1,086 16,988

1,967
2,566
1 2,844
82 4,641
21 5,076
681 5,182
743 5,285
2

Country banks:
1941—Dec.
1945—Dec.
1947_Dec.
1955—Dec.
1956—Dec.
1957_june
Oct.

31....
31....
31....
31....
31....
6....
11....

2,210
4,527
4,993
5,429
5,526
5,631
5,704

526
796
929

790

239
435
528

1,061
1,160
1,097
1,217

1,370
2,004
2,647
4,425
4,538
4,740
4,448

1,020
1,183

167
382
440
385

1,295
2,198
2,238
2,232

180
265
310

432

835

769

146
219
337
844
847
962
956

6,082
12,224
14,177
18,371
19,324
20,491
21,312

4 1,982
11 2,525
23 2,934
52 4,769
21 5,046
267 5,304
129 5,443

Nonmember commercial banks: 3

1947_Dec.
1955—Dec.
1956—Dec.
1957_june

31
31
31
6

385

3 Breakdowns of loan, investment, and deposit classifications are not
available prior to 1947; summary figures for earlier dates appear in the
preceding table.
* Central reserve city banks.
5 Beginning June 30, 1942, excludes reciprocal bank balances, which on




236

6

29
30

172 6,858
475 9,071
546 9,449
584 10,035

12
22
27
72

1,596
2,519
2,649
2,781

Dec. 31, 1942, aggregated $513 million at all member banks and $525
million at all insured commercial banks.
* Demand deposits other than interbank and U. S. Govt., less cash items
reported as in process of collection.
For other notes see opposite page.

320

WEEKLY REPORTING MEMBER BANKS
LOANS AND INVESTMENTS OF BANKS IN LEADING CITIES
[Monthly data are averages of Wednesday figures.

In millions of dollars]

Loans l

Total Loans
and
Comloans investmerand
Month or date
invest- ments Loans cial Agriculadadments justed i justed 1 and tural
industrial

U. S. Government obligations

For purchasing
or carrying securities
CerOther Loans
tifisecuto
cates
Real Other
estate loans Total Bills of in- Notes Bonds2 rities banks
debtloans
edU.S.
U.S.
ness
Govt. Other Govt. Other
ob- cun- ob- cunligaligations ties tions ties
To brokers
and dealers

To others

Total—
Leading Cities
1957
86,227 85,001 51,726 29,831

439

1,726

1,152

8,770 10,824 25,781 1,397

88,318 86,867 52,969 30,689
88,680 87,152 52,527 29,975

Feb

437
442

1,829
2,096

1,113
1,147

8,749 11,284 25,954 ,472 1,761 4,711 18,010 7,944 1,451
8,737 11,269 26,478 1,416 1,583 4,785 18,694 8,147 1,528

773

4,977 18,634 7,494 1,226

1958
Jan
Feb
1958
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.

8
15
22
29
5
12
19
26

89,094
88,391
88,146
87,644

87,744
87,018
86,521
86,187

53,748 31,212
53,211 30,925
52,673 30,419
52,245 30,201

439
436
438
437

2,022
1,815
1,833
1,645

1,108
1,105
1,116
1,125

8,750
8,747
8,753
8,744

11,349 26,087
11,316 25,945
11,247 25,861
11,226 25,923

,581
,485
,389
,431

1,734
1,714
1,796
1,799

4,786
4,711
4,682
4,665

17,986
18,035
17,994
18,028

7,909
7,862
7,987
8,019

1,350
1,373
1,625
1,457

88,770
88,689
88,460
88,804

87,066
87,156
87,027
87,361

52,726 29,993
52,679 29,887
52,422 30,013
52,281 30,006

447
443
438
442

2,230
2,303
1,968
1,882

1,124
1,117
1,171
1,178

8,732
8,738
8,737
8,742

11,339 26,290
11,330 26,313
11,235 26,452
11,170 26,856

1,458
1,400
1,254
1,552

2,051
2,087
1,076
1,119

4,720
4,752
4,821
4,847

18,061
18,074
19,301
19,338

8,050
8,164
8,153
8,224

1,704
1,533
1,433
1,443

365

586 2,157 5,433

300

187

898

4,048

1,820

670

992
977

3,867 1,917
4,080 2,048

718
798

New York City
1957
22,882 22,212 14,959 11,091

138

925

23,142 22,424 14,909 11,276
23,910 23,112 15,282 11,192

Feb

272
484

717
828

342
344

540 2,077 5,598
544 2,198 5,782

490
460

249
265

23,321
23,148
22,984
23,117

22,736
22,396
22,281
22,284

15,239 11,450
14,948 11,366
14,729 11,131
14,721 11,160

410

243
217
216

732
708
741
686

336
342
344
347

2,081 5,630
537 2,070 5,593
539 2,071 5,586
537 2,088 5,584

523
517
456
464

235 1,073
970
215
968
273
955
274

3,799
3,891
3,889
3,891

1,867
1,855
1,966
1,979

585
752
703
833

24,038
23,843
23,882
23,877

23,143
23,171
23,061
23,073

15,330 11,142
15,350 11,092
15,277 11,244
15,170 11,286

617
611
405
305

791
868
836
818

346
345
345
341

543
550
542
543

516
439
408
475

363
382
145
170

3,953
3,973
4,193
4,203

2,009
2,055
2,046
2,082

895
672
821
804

586 4,079 14,586 5,674

556

982 1,512 3,719 14,143 6,027
956 1,318 3,8"" 14,614 6,099

733
730

14

1958
Jan
Feb
1958
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.

8
15
22
29
5
12
19
26
Outside
New York City

2,207
2,200
2,205
2,179

5,804
5,766
5,738
5,821

972
972
992
973

1957
Feb

63,345 62,789 36,767 18,740

438

663

773

8,184 8,667 20,348 1,097

65,176 64,443 38,060 19,413
64,770 64,040 37,245 18,783

436
441

840
784

736
759

8,209 9,207 20,356
8,193 9,071 20,696

1958
Jan
Feb
1958
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.

8
15
22
29
5
12
19
26

65,773
65,243
65,162
64,527

65,008
64,622
64,240
63,903

38,509 19,762
38,263 19,559
37,944 19,288
19
37,524 19,041

438
435
437
436

880
864
875
743

737
731
735
740

8,205
8,210
8,214
8,207

9,268 20,457 1,058
9,246 20,352 968
9,176 20,275 933
9,138 20,339 967

6,042
6,007
6,021
6,040

765
621
922
624

64,732
64,846
64,578
64,927

63,923
63,985
63,966
64,288

37,396
37,329
37,145
37,111

18,851
18,795
18,769
18,720

446
442
437
441

822
824
727
759

742
736
773
786

8,189
8,188
8,195
8,199

9, 132 20,486 942 1,688 3,748 14,108 6,041
9, 130 20,547 961 1,705 3,780 14,101 6,109
9,030 20,714 846
931 3,829 15,108 6,107
8,991 21,035 ,077
949 3,874 15,135 6,142

809
861
612
639

i Exclusive of loans to banks and after deduction of valuation reserves;
individual loan items are shown gross.




2
Includes guaranteed obligations.
See also NOTE on opposite page.

1,499
1,499
1,523
1,525

3,713
3,741
3,714
3,710

14,187
14,144
14,105
14,137

321

WEEKLY REPORTING MEMBER BANKS
RESERVES AND LIABILITIES OF BANKS IN LEADING CITIES
[Monthly data are averages of Wednesday figures. In millions of dollars]
Demand deposits,
except interbank

Month or date

DeBalReserves Cash ances mand
dewith
with
in
doF. R. vault mestic posits
adBanks
banks justed!

Time deposits,
except interbank

Interbank
deposits

IndiDemand
vidStates Certiuals, States U . S .
and Govt.
and
fied
polit- and U.S. part- polit- and
nerical
ical
offiDosub- cers' Govt. ships, sub- Postal mes- Forand
divi- Savdivi- checks,
eign
cor- sions ings
tic
etc.
porations

Borrowings

Capital
acFrom From
counts
Time F. R. others
Banks

TotalLeading Cities
1957
2,392 56,470 59,256 4,025 1,802

961

180 10,242 1,516

1,243

532

922 9,093

13,658 1,036 2,488 56,394 58,954 4,115 2,080 1,028 21,990 1,198
13,437
970 2,555 55,313 57,428 4,191 2,081 1,773 22,275 1,372

134 10,882 1,587
135 10,476 1,492

1,359
1,831

291
91

819 9,651
930 9,708

13,457

Feb

1,197 20,333

1958
Jan
Feb
1958
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.

1,077
1,028
1,011
1,031

2,420
2,633
2,417
2,480

56,356
56,532
56,556
56,134

58,647
60,399
58,845
57,924

4,119
4,064
4,099
4,176

2,049 1,364 21,907 1,183
2,077
844 21,961 1,192
2,381
855 22,029 1,201
1,816 1,048 22,062 1,216

137 11,311
134 11,465
134 10,501
137 10,252

1,677 1,221
1,584 1,345
1,554 1,360
1,533 1,508

754 9,649
619
697 9,644
128
298 1,043 9,634
782 9,675
118

13,452
905
13,264 1,013
13,562
952
13,469 1,012

2,505
2,503
2,694
2,518

55,880
55,548
54;882
54,943

57 ,554
58 ,224
56 ,893
57,040

4,312
4,193
4,118
4,141

2,512
1,908
1,980
1,925

136 10,681
136 10,526
134 10,493
134 10,203

1,501
1,485
1,479
1,503

1,652
1,823
1,916
1,933

999 9,698
75
143 1,053 9,701
862 9,705
68
79
807 9,730

35 2,893 1,203

953

127

532 2,862

2,974 1,282 1,011
2,942 1,205 1,394

49

447 3,114
437 3,138

13,758
13,635
13,782
13,458

8
15
22
29
5
12
19

Feb. 26

1,417
1,222
2,144
2,308

22,157
22,245
22,306
22,390

1,304
1,362
1,380
1,443

New York City
1957

4,342

151

48 15,764 17,342

284

874

300 2,363

49

4,377
4,141

149
137

52 15,458 16,989
46 15,345 16,679

267 1,102
311 1,173

295 2,743
506 2,831

65
142

4,496
4,222
4,549
4,241

164
144
145
145

57
53
52
45

4,090
4,168
4,017
4,288

137
142
129
141

9,115

837 2,344 40,706 41,914 3,741

928

9,281
9,296

887 2,436 40,936 41,965 3,848
833 2,509 39,968 40,749 3,880

9,262
9,413
9,233
9,217

913 2,363 40,801 41,707
884
580 4i; 139 43,153
866
365 41,094 41,981
886
435 40,709 41,019

9,362
9,096
9,545
9,181

768 2,462 40,323 40,815 4,036
871 ",461 40,115 41,455 3,851
823 ,649 39,754 40,423 3,802
871 ,466 39,683 40,303 3,832

Feb
1958
Jan
Feb
1958
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.

8
15
22
29
5
12
19
26

430
360
688
308

3,110
3,111
3,114
3,122

481
589
301
379

3,137
3,138
3,140
3,136

15,555
15,393
15
15,462
15,425

16,940
17,246
16,864
16,905

269 1,012
263 1,055
293 1,408
246
934

418
268
229
265

2,727
2,710
2,755
2,780

62
63
63
74

3,003
3,108
2,847
2,938

1,359
904
1,278
996
1,254 1,009
1,238 1,133

15,557
15,433
15,128
15,260

16,739
16,769
16,470
16,737

276 1,607
342
983
316 1,072
309 1,029

476
364
581
606

2,802
2,831
2,825
2,866

133
135
135
166

2,996
2,818
3,025
2,928

1,219
1,202
1,194
1,206

897 17,970

912

145 7,349

313

290

405

390 6,231

978
733 19,247 1,133
908 1,267 19,444 1,230

110 7,908
111 7,534

305
287

348
437

242
91

372 6,537
493 6,570

170
27

1,258
1,392
1,456
1,469

Outside
New York City
1957

Feb
1958
Jan
Feb
1958
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.

8
15
22
29
5
12
19
26

946 19,180
576 19,251
626 19,274
783 19,282

1,121
1,129
1,138
1,142

113
110
111
113

8,308
8,357
7,654
7,314

318
306
300
295

317
349
351
375

449
128
271
118

324
337
355
474

6,539
6,533
6,520
6,553

905
941 19,355
925
858 19,414
908 1,563 19,481
896 1,702 19,524

1,171

112 7,685
112 7,708
110 7,468
7,275

282
283
285
297

394
431
460
464

75
143
68
79

518
464
561
428

6,561
6,563
6,565
6,594

3,850 1,037
3,801 1,022
3,806
973
3,930
882

1 Demand deposits other than interbank and U. S. Govt., less cash
items reported as in process of collection.




1,227
1,245
1,277

NOTE.—For description of revision beginning Mar. 4, 1953, see BULLETIN for April 1953, p. 357, and for figures on the revised basis beginning
Jan. 2, 1952, see BULLETIN for May 1953, pp. 550-55.

322

COMMERCIAL LOANS; OPEN MARKET PAPER
CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS, BY INDUSTRY*
[Net decline, ( - ) .

In millions of dollars]

Manufacturing and mining

Period 2

Food, Textiles,
liquor, apparel,
and
and
tobacco leather

1955—Jan.-June
July-Dec

-540
480

220
71

1956—Jan.-June
July-Dec

-302
822

238
-6

1957—Jan.-June
July-Dec

-456
331

148
-159

PetroMetals
leum,
and
coal,
metal
chemical,
prodand
ucts 3
rubber
111
224

Other

Trade
(wholesale
and
retail)

Sales
finance
companies

Commodity
dealers

Public
utilities
(incl.
transportation)

Construction

Comm'l
and
All
ind'l
Net
other
changes change—
types
all
classiof
weekly
fied
business
reporting
banks 4

313
208

153
63

146
327

-461
469

589
704

384
27

134
106

143
370

1,257
3,050

1,078
53,206

1,362
-71

424
428

369
72

171
178

-386
739

-322
98

365
350

54
-66

149
176

2,124
2,719

42,243
2,459

935
-496

291
150

214
-161

-1
-8

-539
420

366
-108

513
183

-12
-49

-54
58

1,404
161

1,249
-296

-19

-20

52

89

-65

-254

83

569

200

-21

135

750

708

-227
-126

25
76

-44
111

-22
4

-28
45

-207
-51

-10
-125

-571
-44

-81
-89

-24

-130
43

-1,319
-155

-1,600
-195

Week ending:
1957—Dec. 4
Dec. 11
Dec. 18
Dec. 25
Dec. 316

20
30
81
-31
-118

-10
3
6
2
-20

35
18
31
11
-42

10
26
15
37

-4
-7
-19
-20
-16

-3
-1
-63
-82
-105

-13
29
55
17
-5

37
73
294
68
97

-14
97
2
23
92

-16
4
7
-9
-7

34
-16
49
10
58

77
256
458
-12
-30

43
249
487
-19
-52

1958—Jan. 8
Jan. 15
Jan. 22
Jan. 29

-57
-58
-67
-45

-27
11
-5
-1

-1
5
-7
-25

-59
-45
-52
-52

32
-13
-88
59

-239
-97
-123
-113

-10
-22
-35
-13

-13

16
-3
13

-24
20
-28
-12

-7
-5

-58
-57
-26
10

-456
-240
-440
-183

-589
-287
-506
-218

Feb.
5
Feb. 12
Feb. 19
Feb. 26

-18
-30
-36
-42

26
13
22
16

-25
10
90
36

10
-2
9
-12

-1
11
17
17

-14
-13
-25
2

-53
-49
-16
-8

-69
-48
68
5

-61
-8

-8
10
3
-3

21
-2
8
16

-193
-107
139
6

-208
-106
126
7

1957—Dec
1958

Jan
Feb

1
Data for a sample of about 210 banks reporting changes in their
larger loans; these banks hold about 95 per cent of total commercial
and industrial loans of all weekly reporting member banks and about
75 per cent of those of all commercial banks.
2
Figures for periods other than weekly are based on weekly changes.
3
Includes machinery and transportation equipment.

-20

4
Prior to week ending Jan. 11, 1956, included changes in agricultural
loans.
5
Includes increase of $318 million resulting from errors disclosed
incident to survey of credit extended to real estate mortgage lenders.
6 Tuesday.

COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING
[In millions of dollars]
Dollar acceptances
Commercial and finance
company paper
Held by:
Accepting banks

End of year
or month
Total

Placed
through
dealers *

Placed
directly
(finance
paper) 2

Total
Total

Bills
Own
bills bought

Based on:

F. R.
Banks

Imports
Others into
United
States

Exports
from
United
States

Own
acct.

Foreign
corr.

289
378
565
405
621

232
274
285
252
261

125
154
182
210
329

Dollar
exchange

Goods stored in or
shipped between
points in:
United
States

Foreign

39
29
17
17
2

64
75
300
63
227

32
43
89
100
148

1952
1953
1954
1955
1956

1,745
1,966
1,924
2,020
2,166

552
564
733
510
506

1,193
1,402
1,191
1,510
1,660

492
574
873
642
967

183
172
289
175
227

126
117
203
126
155

57
55
86
49
72

28
69

20
24
19
33
50

1957—Jan..
Feb.
Mar,
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

2,575
2,714
2,650
2,485
2,775
2,452
2,781
2,835
2,558
2,654
2.944
2,666

548
555
489
466
483
454
459
501
501
516
560
551

2,027
2,159
2,161
2,019
2,292
1,998
2,322
2,334
2,057
2,138
2,384
2,115

1,012
992
1,019
1,018
984
979
1,000
1,227
1,197
1,225
1,224
1,307

230
202
209
195
188
183
154
220
214
197
221
287

156
133
150
135
142
142
112
152
149
131
151
194

74
69
59
60
46
41
42
68
65
66
70
94

30
24
23
24
21
23
19
27
16
16
20
66

62
58
58
64
63
62
70
68
66
69
67
76

689
708
728
735
713
711
757
913
901
942
916
878

291
307
305
272
227
220
231
243
234
248
268
278

363
389
425
471
501
502
507
524
483
465
459
456

2
2
2
4
5
21
35
66
75
94
64
46

197
127
116
89
73
58
59
212
225
226
222
296

158
167
171
182
177
178
169
182
181
192
211
232

1958—Jan..

33,345

654

32,691

1,422

416

307

109

41

127

838

273

461

65

386

237

1
As reported by dealers; includes finance company paper as well as
other commercial paper sold in the open market.




2
As reported by finance companies that place their paper directly with
investors.
3
Includes an additional finance company.

323

INTEREST RATES
MONEY MARKET RATES

Year,
month, or
week

BANK RATES ON SHORT-TERM BUSINESS LOANS

[Per cent per annum]

[Per cent per annum]

Prime
commercial
paper,
4- to 6months 1

Finance
company
paper
placed
directly,
3- to 6months *

Prime
bankers'
acceptances,
90
days 1

Size of loan (thous. of dol.)

U. S. Government
securities (taxable) 2
All
loans

Area and period
3-month bills
Market
yield

Rate
on new
issues

9-to 12- 3- to 5year
month
issues3 issues4

1955 average
1956 average
1957 average

2.18
3.31
3.81

1.97
3.06
3.55

1.71
2.64
3.45

1.73
2.62
5.23

1.753
2.658
3.267

1.89
2.83
3.53

2.50
3.12
3.62

1957—Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

3.63
3.63
3.63
3.63
3.79
3.88
3.98
4.00
4.10
4.07
3.81

3.38
3.38
3.38
3.38
3.48
3.63
3.63
3.82
3.88
3.79
3.55

3.38
3.27
3.20
3.25
3.36
3.38
3.78
3.83
3.75
3.50
3.35

5.11
5.08
5.06
5.06
5.29
5.16
5.37
5.53
5.58
5.29
5.04

3.165
3.140
3.113
3.042
3.316
3.165
3.404
3.578
3.591
3.337
3.102

3.23
3.35
3.41
3.37
3.55
3.71
3.93
4.02
3.94
3.52
3.09

3.33
3.38
3.48
3.60
3.77
3.89
3.91
3.93
3.99
3.63
3.04

1958—Jan
Feb

3.49
2.63

3.23
2.18

3.06
2.30

>.44
.54

2.598
1.562

2.56
1.93

2.77
2.67

Week ending
Feb. 1 . . .
Feb. 8 . . .
Feb. 15. . .
Feb. 22. . .
Mar. 1 . . .

3.23
2.83
2.63
2.63
2.45

2.90
2.43
2.19
2.13
1.98

2.78
2.43
2.38
2.35
2.08

1.92
.65
.69
1.62
1.22

2.202
1.583
1.730
1.731
1.202

2.29
2.09
2.05
1.93
1.69

Annual averages,
19 large cities:
1955
1956
1957

2.78
2.78
2.72
2.67
2.54

100200

10100

200
and
over

3.7
4.2
4.6

Quarterly: 1
19 large cities:
1957_Mar
June
Sept
Dec
New York City:
1957—Mar
June
Sept
Dec
7 Northern & Eastern
cities:
1957_Mar
June
Sept
Dec
11 Southern & Western
cities:
1957_Mar
June
Sept
Dec.

1
Average of daily prevailing rates. 2 Except for new bill issues, yields are
averages computed from daily closing bid prices.
3 Consists of certificates of indebtedness and selected note and bond issues.
4
Consists of selected note and bond issues.

110

5.0
5.2
5.5

4.4
4.8
5.1

4.0
4.4
4.8

3.5
4.0
4.5

4.38
4.40
4.83
4.85

5.38
5.37
5.67
5.66

4.94
4.94
5.29
5.29

4.59
4.61
5.01
5.01

4.21
4.23
4.69
4.71

4.23
4.23
4.69
4.71

5.26
5.24
5.54
5.50

4.92
4.86
5.24
5.23

4.47
4.49
4.93
4.94

4.11
4.12
4.60
4.62

4.40
4.39
4.85
4.86

5.41
5.39
5.69
5.67

4.91
4.94
5.31
5.33

4.61
4.61
5.01
5.02

4.26
4.25
4.73
4.74

4.60
4.65
5.01
5.05

5.42
5.42
5.72
5.73

4.96
4.99
5.31
5.31

4.64
4.70
5.05
5.04

4.35
4.43
4.81
4.87

March

1949,

i Based on figures for first 15 days of month.
NOTE.—For description see BULLETIN for
pp. 228-37.

BOND AND STOCK YIELDS i
[Per cent per annum]

Stocks 5

Corporate bonds 3

Year, month, or week

U. S.
Govt.
bonds
(longterm) 2

State and local
govt. bonds 3

By selected
ratings
Total

Total 4

Aaa

Aaa

Baa

Baa

Dividends/
price ratio

By
groups

4

Industrial

Railroad

Public
utility

Preferred

Common

Number of issues

4-7

20

5

5

120

30

30

40

40

40

14

90

1955 average
1956 average
1957 average

2.84
3.08
3.47

2.57
2.94
3.56

2.18
2.51
3.10

3.14
3.50
4.20

3.25
3.57
4.21

3.06
3.36
3.89

3.53
3.88
4.71

3.19
3.50
4.12

3.34
3.65
4.32

3.22
3.54
4.18

4.01
4.25
4.63

4.08
4.09
4.35

1957

Nov
Dec

3.22
3.26
3.32
3.40
3.58
3 60
3.63
3.66
3.73
3.57
3.30

3.29
3.36
3.35
3.48
3.65
3 65
3.84
3.89
3.74
3.67
3.33

2.79
2.88
2.88
3.00
3.19
3 17
3.37
3.43
3.31
3.24
2.92

3.96
3.97
3.95
4.10
4.32
4.29
4.43
4.49
4.38
4.35
4.00

3.99
3.97
3.96
4.02
4.15
4 26
4.37
4.44
4.46
4.49
4.31

3.67
3.66
3.67
3.74
3.91
3.99
4.10
4.12
4.10
4.08
3.81

4.47
4.43
4.44
4.52
4.63
4.73
4.82
4.93
4.99
5.09
5.03

3.94
3.90
3.89
3.96
4.14
4 19
4.29
4.31
4.32
4.34
4.11

4.06
4.04
4.06
4.13
4.26
4 39
4.49
4.56
4.57
4.65
4.53

3.97
3.95
3.94
3.98
4.06
4.19
4.33
4.45
4.48
4.49
4.29

4.47
4.46
4.47
4.53
4.69
4 75
4.83
4.79
4.80
4.78
4.49

4.54
4.47
4.36
4.18
4.04
3 95
4.17
4.31
4.54
4.67
4.64

Jan
Feb

3.24
3 26

3.17
3 15

2.75
2 72

3.81
3 79

4.06
4.01

3.60
3.59

4.83
4.66

3.91
3.86

4.30
4.29

3.99
3.87

4.36
4 38

3.12
3 14
3 13
3.15
3.19

2.68
2 70
2 70
2.73
2.76

3.76
3 77
3.77
3.78
3.85

4.00
4 01
4.01
4.00
4.00

3.56
3 59
3.59
3.58
3.60

4.72
4.68
4.66
4.64
4.65

3.84
3 87
3.86
3.85
3.85

4.29
4 30
4.29
4.28
4.29

3.89
3 88
3.87
3.86
3.87

4.32
4 37
4.38
4.38
4.39

Common

4.48
4.47

3.28
3 27
3 25
3.25
3.27

Earnings/
price ratio

4.40
4 37
4.51
4.49
4.52

Feb
Mar

Apr
May

June
July
Aug

Sept
Oct

1958

Week ending:
Feb 1
Feb 8
Feb. 15
Feb 22
Mar. 1

1
Monthly and weekly yields are averages of daily figures for U. S. Govt.
and corporate bonds. Yields of State and local govt. general obligations
are based on Thursday figures; and of preferred stocks, on Wednesday
figures. Figures for common stocks are as of the end of the period,
except for annual averages.
2
Series is based on bonds maturing or callable in 10 years or more.
3 Moody's Investors Service. State and local govt. bonds include general obligations only.




500
7.81
7.40
7.84
7.71
7.10
8.00
8.56

4
Includes bonds rated Aa and A, data for which are not shown separately. Because of a limited number of suitable issues, the number of
corporate bonds in some groups has varied somewhat.
5 Standard and Poor's Corporation. Preferred stock ratio is based on
8 median yields in a sample of noncallable issues—12 industrial and 2
public utility. For common stocks, the earnings/price ratio is now computed for the 500 stocks in the price index, but figures prior to June 1957
are based on the 90 stocks formerly included in the daily price index.
The dividend/price ratio has not yet been converted to the broader base.

324

SECURITY MARKETS
SECURITY PRICES i
Bond prices

Common stock prices

Year, month,
or week

Number of issues.

U. S.
Govt.
(longterm) 2

CorMuponicipal
rate
(high- 3 (highgrade) grade) 3 Total

Industrial

Railroad

Public
utility

Total

425

25

50

15

17

265

170

98

72

21

29

31

14

92.05

123.1
116.3
105.8

114.4
109.1
101.3

40.49 42.40 32.94 31.37
46.62 49.80 33.65 32.25
44.38 47.66 28.11 32.19

305
345
331

374
439
422

352
410
391

394
465
451

320
327
275

153
156
156

297
306
277

313
358
342

2,578
2,216
2,222

1957—Feb...
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec.

93.74
93.28
92.45
91.33
89.22
89.07
88.65
89.24
91.87
94.25
100.73

110.9
110.0
109.8
106.9
103.5
103.5
101.2
101.3
102.9
103.4
107.5

104.3
104.5
104.3
103.2
101.1
100.0
98.3
98.1
98.2
98.3
102.7

43.47
44.03
45.05
46.78
47.55
48.51
45.84
43.98
41.24
40.35
40.33

32.29
32.45
33.03
34.03
33.35
32.93
31.89
31.09
30.39
30.68
31.79

325
328
339
352
355
362
343
328
306
302
298

409
415
431
450
457
468
441
419
388
382
376

386
388
404
419
421
434
408
386
357
350
336

431
440
455
480
489
500
472
450
417
411
413

292
288
291
297
293
302
286
263
241
228
215

157
159
160
163
160
158
155
153
149
149
152

278
280
281
286
283
291
282
277
266
262
258

346
344
352
380
390
382
354
334
297
284
274

1,978
1,698
2,300
2,389
2,224
2,194
1,882
1,844
2,782
2,538
2,594

1958—Jan...
Feb...
Week ending:
Feb. 1.
Feb. 8.
Feb. 15.
Feb. 22.
Mar. 1.

102.66
102.47

110.0
109.2

105.9
105.7

41.12 43.98 22.69 33.30
41.26 44.01 23.00 34.12

305
304

382
378

347
346

414
408

230
231

158
160

270
278

272
267

2,267
2,010

102.00
101.96
102.48
102.83
102.61

110.8
109.6
109.3
109.3
108.4

106.3
105.8
105.6
105.7
105.6

41.70
42.10
41.16
41.04
40.74

308
308
306
301
301

386
385
380
374
373

350
350
348
343
342

418
416
410
402
402

238
236
234
230
226

160
160
160
160
161

276
279
277
278
275

278
274
269
261
263

2,151
2,474
2,001
1,840
1,725

1955 average.
1956 average.
1957 average.

4-5

500

Volume
of
trading-»
(in
Trade,
Manufacturing
thoufiTrans' Pub- nance, Min- sands
lic
of
porta- utiland
ing shares)
Du- Non- tion
servTotal rable duity
ice
rable

Securities and Exchange Commission series
(index, 1939= 100)

Standard and Poor's series
(index, 1941-43= 10)

46.10
46.86
48.06
50.10
51.30
52.54
49.51
47.52
44.43
43.41
43.29

44.53
45.00
43.91
43.75
43.40

29.59
29.37
29.78
30.42
30.11
31.20
29.52
27.17
24.78
22.63
21.39

23.48
23.87
22.92
22.92
22.29

1
Monthly and weekly data for (1) U. S. Govt. bond prices, Standard
and Poor's common stock indexes, and volume of trading are averages
of daily figures; for (2) municipal and corporate bond prices are based
on Wednesday closing prices; and for (3) the Securities and Exchange
Commission series on common stock prices are based on weekly closing
prices.

34.03
34.18
34.02
34.11
34.16

2 Average prices of bonds maturing or callable in 10 years or more;
averages for 1955 and 1956 not yet available.
3
Prices derived from average yields, as computed by Standard and
Poor's Corporation, on basis of a 4 per cent, 20-year bond.
4 Average daily volume of trading in stocks on the New York Stock
Exchange for a 5Vi-hour trading day.

STOCK MARKET CREDIT
[In millions of dollars]
Broker and dealer credit 1

Customer credit

End of month or last
Wednesday of month

Totalsecurities
other than
U. S. Govt.
obligations
(col.3 +
col. 5)

N e t debit balances with
Bank loans to others (than
N e w Y o r k Stock Exchange
brokers and dealers) for purfirms1
chasing and carrying securities2

Secured by
U. S. Govt.
obligations

Secured by
other
securities

U. S. Govt.
obligations

Other
securities

Money borrowed
On
U. S. Govt.
obligations

On
other
securitie:

Customer
net
free
credit
balances

1953—Dec.
1954—Dec.
1955—Dec.
1956—Dec.

2,445
3,436
4,030
3,984

31
41
34
33

1,665
2,388
2.791
2,823

65
32
41

780
1,048
1,239
1,161

69
51
46

1,074
1,529
2,246
2,132

713
1,019
894
880

1957—Feb.,
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

3,846
3,832
3,938
3,924
4,031
4,004
3,929
3,882
3,643
3,577
3,576

35
28
28
39
31
32
30
35
39
42
68

2,729
2,713
2,792
2,794
2,887
2,885
2,833
2,789
2,568
2,517
2,482

31
27
28
26
25
23
24
21
31
33
60

1,117
1,119
1,146
1,130
1,144
1,119
1,096
1,093
1,075
1,060
1,094

53
47
53
52
52
59
58
63
72
56
125

2,004
1,958
2,051
2,063
2,104
2,079
2,035
2,046
,708
,641
.706

828
820
807
817
820
829
816
838
879
876
896

1958—Jan..
Feb.

3,554
3,679

126
102

2,487
2_580

58
79

1,067
1,099

188
199

,552
,647

c

Corrected.
1
Ledger balances of m e m b e r firms of the New Y o r k Stock Exchange
carrying margin accounts, as reported to the Exchange. C u s t o m e r s ' debit
a n d free credit balances exclude balances maintained with the reporting
firm by other m e m b e r firms of n a t i o n a l securities exchanges a n d balances
of the reporting firm and of general partners of the reporting firm. Balances are net for each customer—i. e., all accounts of o n e customer are
consolidated. M o n e y b o r r o w e d includes borrowings from banks and
from other lenders except m e m b e r firms of national securities exchanges.
D a t a are as of the end of the m o n t h , except m o n e y borrowed, which is as
of the last Wednesday of the m o n t h beginning J u n e 1955.




C

937
939

2 Figures are for last Wednesday of m o n t h for weekly reporting membei
b a n k s , which account for a b o u t 70 per cent of all loans for this purpose.
C o l u m n 5 includes some loans for purchasing or carrying U . S. Govt.
securities (such loans are reported separately only by N e w Y o r k and
Chicago banks). O n J u n e 30, 1956, reporting b a n k s outside N e w Y o r k
a n d Chicago held $51 million of such loans. On the same date insured
commercial b a n k s n o t reporting weekly held loans of $28 million for
purchasing a n d carrying U . S. G o v t . securities and of $384 million for
other securities. N o n i n s u r e d b a n k s h a d $33 million of such loans,
probably mostly for purchasing or carrying other securities.

325

SAVINGS INSTITUTIONS
LIFE INSURANCE COMPANIES 1
[Institute of Life Insurance data.

In millions of dollars]
Business securities

Government securities
Total
assets

Date

1,878
857

2,919
1,962

1,840
1,738

16,102
19,314
21,251
23,322
25 976
29,445
32,989

1,445
1,631
1,903
2,020
2,298
2,581
2,817

2,413
2,590
2,713
2,914
3,127
3,290
3,519

2,591
2,872
3,088
3,302
3,523
3,743
4,076

End of month: 4
1953—Dec
1954—Dec
1955 Dec
1956—Dec

2,339
2,710
2,921
2,909

23,275
25,928
29,425
32,994

1,994
2,275
2,557
2,829

2,894
3,087
3,294
3,505

3,321
3,884
4,383
4,551

. .

38 256
38,432
38,638
38,821
39,004
39,190
39 574
39,724
39,922
40,149
40,340
40,637

2,921
2,933
2,941
2,951
2,958
2,956
2,993
3,018
3,010
3,021
3,028
3,007

33,279
33,479
33,672
33,840
34,022
34,159
34,356
34,547
34,697
34,859
34,986
35,230

2,841
2,865
2,883
2,907
2,948
2,983
3,004
3,032
3,059
3,085
3,113
3,134

3 523
3,547
3,575
3,606
3,633
3,657
3,703
3,731
3,764
3,802
3,833
3,863

4,428
4,444
4,439
4,417
4,408
4,470
4,469
4,442
4,527
4,452
4 515
4,572

1958—Jan

40,862

2,997

35,410

3,156

3,896

4,532

Total

Bonds

Stocks

9,478
22,545

6,796
20,583

1,995
722

687
1,240

10,174
11,059

9,573
10,060

601
999

6,442
6,636

64,020
68,278
73,375
78,533
84 486
90,432
96,011

16,118
13,760
12,905
12,537
12 262
11,829
11,067

13,459
11,009
10,252
9,829
9 070
8,576
7,555

1,152
1,170
1,153
1,298
1 846
2,038
2,273

1.507
,581
,500
1,410
1,346
1,215
21Q

25,351
28,111
31,515
34,438
37,300
39,545
41,543

23,248
25,890
29,069
31,865
34 032
35,912
38,040

2,103
2,221
2,446
2,573
3,268
3,633
3,503

78,201
84,068
90,267
95,844

. .

1957—Jan
Feb
Mar.
Apr
May
June
July
Aus
Sept
Oct
Nov
Dec

Other
assets

United State and Foreign2
local
States
(U. S.)

32,731
44,797

End of year: 3
1941
1945
1950
1951
1952
1953
1954
1955
1956

Policy
loans

Mortgages

Total

12,452
12,199
11,757
10,989

9,767
9,021
8,545
7,519

1,407
1,345
1,214
1,236

34,265
36,695
38,851
40,976

31,926
33,985
35,930
38,067

96,316
96,738
97,074
97,488
97,868
98,239
99,005
99,374
99,812
100,224
100,597
101,043

11,068
11,038
10,926
10,946
10,895
10,824
10,906
10,880
10,833
10,856
10,782
10,600

7 588
7,544
7,427
7,430
7,340
7,270
7,306
7,268
7,224
7,233
7,135
6,950

1,278
1,833
1,998
2,234
2 244
2,244
2,251
2,264
2,290
2,290
2,323
2,333
2,340
2,352
2,362
2,375

1,236
1,250
1,248
1,252
1.265
1,264
1,277
1,279
1,269
1,271
1,285
1,275

41,177
41,365
41,579
41,772
41,962
42,146
42,567
42,742
42,932
43,170
43,368
43,644

101,672

10,819

7,113

2,418

1,288

43,859

1
2

Figures are for all life insurance companies in the United States.
Represents issues of foreign governments and their subdivisions
and bonds of the International Bank for Reconstruction and Development.

Real
estate

3
These represent annual statement asset values, with bonds carried on
an 4amortized basis and stocks at end-of-year market value.
These represent book value of ledger assets. 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."

SAVINGS AND LOAN ASSOCIATIONS i
[Federal Savings and Loan Insurance Corporation data.

In millions of dollars]
Liabilities

Assets
End of year or month
Total

2

Mortgages 3

U. S.
Govt.
obligations

Borrowings
Cash

Other

4

Savings
capital

FHLB
advances

Other

Reserves
and
undivided
profits

1941
1945
1950
1951
1952
1953
1954
1955
1956
1957

6,049
8,747

4,578
5,376

107
2,420

344
450

775
356

4,878
7,386

218
190

38
146

475
644

16,893
19,222
22,660
26,733
31,736
37,719
42,875
48,275

13,657
15,564
18,396
21,962
26,194
31,461
35,729
40,119

1,487
1,603
1,787
1,920
2,021
2,342
2,782
3,169

924
1,066
1,289
1,479
1,980
2,067
2,119
2,144

733
899
1,108
1,297
1,471
1,791
2,199
2,809

13,992
16,107
19,195
22,846
27,334
32,192
37,148
42,038

810
801
860
947
864
1,412
1,225
1,263

90
93
84
80
96
146
122
118

1,280
1,453
1,658
1,901
2,191
2,557
2,950
3,377

1957—Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.

43,020
43,419
43,934
44,431
45,085
45,736
45,750
46,188
46,639
47,127
47,600
48,275

35,929
36,195
36,559
36,963
37,421
37,886
38,280
38,743
39,106
39,532
39,835
40,119

2,924
3,041
3,132
3,162
3,180
3,139
3,180
3,203
3,229
3,219
3,238
3,169

1,947
1,907
1,884
1,836
1,874
2,061
1,741
1,635
1,643
1,622
1,705
2,144

2,175
2,232
2,316
2,428
2,569
2,610
2,510
2,569
2,624
2,718
2,787
2,809

37,484
37,799
38,158
38,471
38,939
39,798
39,730
39,982
40,306
40,673
41,072
42,038

1,035
973
958
968
990
1,077
1,037
1,070
1,117
1,129
1,141
1,263

97
89
83
87
84
103
109
115
115
121
117
118

3,136

1958—Jan..

48,423

H O , 369

3,215

2,023

2,816

42,491

904

100

1
Figures are for all savings and loan associations in the United States.
Data beginning 1950 are based on monthly reports of insured associations and annual reports of noninsured associations. Data prior to
1950 are based entirely on annual reports.
2
Includes gross mortgages with no deduction for mortgage pledged
shares.




3,377

3
Beginning January 1958, no deduction is made for mortgage pledged
shares. These have declined consistently in recent years and amounted
to 4$34 million at the end of 1957.
Includes other loans, stock in the Federal home loan banks and other
investments, real estate owned and sold on contract, and office buildings
and fixtures.
NOTE.—Data for 1957 and 1958 are preliminary.

326

FEDERAL BUSINESS-TYPE ACTIVITIES
SELECTED ASSETS AND LIABILITIES OF FEDERAL BUSINESS-TYPE ACTIVITIES
[Based on compilation by Treasury Department. In millions of dollars]
End of quarter

End of year
Asset or liability, and activity1

1956
1950

19512

19532

19522

1954

2*
Loans, by purpose and agency:

1957

1955
3

4*

1

2*

6,929
367
638
701
2,226
2,981
18

6,715 ^6,756
349
375
689
898
681
3777
2,348 2,413
2,621 2,319
1

7,160
395
874
769
2,450
2,671

6,752
457
734
724
2,488
2,349

7,257
423
4845
823
2,544
2,626
(5)

6,827
384
997
866
2,586
1,994
(5)

292

2,930
2,462
/ 300
362 \ 168

2,907
2,461
383
63

3,205
2,641
480
84

3,299
2,729
433
137

3,391
2,806
446
138

3,680
3,072
464
145

4,076
3,433
488
155

4,381
3,629
521
123

568
568

589
589

598
598

588
174

431
353

678
306
261
112

627
323
221
83

624
216
216
192

619
209
219
191

629
209
228
192

640
211
219
210

824

814

864

952

870

1,419

7,775

1,147

1,233

966

1,084

468
351
117

744
589
155

1,020
894
126

645
500
145

272
112
160

245
90
155

227
90
137

244
109
135

246
106
140

272
120
153

243
94
149

6,078
2,226
3,750

6,110
2,296
3,750

7,736
2,496
3,667
71,515
64
58

8,043
2,833
3,620
1,537
53

8,001
2,806
3,570
1,624
1

7,988
2,702
3,519
1,767

5,772
2,712
3,519
1,885
55

8,229
2,692
3,519
1,958
60

8,223
2,701
3,470
1,995
57

8,237
2,678
3,470
2,035
54

8,300
2,667
3,470
2,084
52

75
5
69

119
29
90

166
127
39

256
209
47

775
122
55

795
136
56

275
156
57

240
184
56

555
275
60

3,884
345
510
535
1,543
898
52

Banks for cooperatives
Federal intermediate credit banks
Farmers Home Administration
Rural Electrification Administration
Commodity Credit Corporation
Other agencies

7,525
Federal National Mortgage A s s o c i a t i o n . . . . . . . . . . 1,347
Veterans Administration
> 181
Other agencies
To industry, total
Treasury Department
Commerce Department
Other agencies

To aid States, territories, etc., total
Public Housing Administration
Other agencies
Export-Import Bank
Treasury Department 6
International Cooperation Administration
Other agencies
All other purposes, total
Other agencies
Total loans receivable (net)

}
\

1

...

102
63

4,161
425
633
539
1,742
782
40
2,142
1,850

35

63

5,070
424
673
596
1,920
1,426
31

6,811
377
590
648
2,096
3,076
23

2,603
2,242

1

\

All

413

/
79 (

(5)

(5)

-309
-656
-327
-228
-185
-173
-140
-268 3-592
-695
-203
13,228 14,422 17,826 19,883 19,348 20,238 19,844 20,331 20,657 21,353 20,980

Investments:
2,075
U. S. Government securities, total
199
Federal home loan banks
193
Federal Savings and Loan Insurance Corp . . . . . . .
Federal Housing Administration
244
1,307
Federal Deposit Insurance Corporation
132
Other agencies
3,385
Investment in international institutions
266
Other securities*

2,226
249
200
285
1,353
140
3,385
257

2,421
311
208
316
1,437
148
3,385
223

2 602
387
217
319
1,526
152
3,385
219

2,967
641
228
327
1,624
147
3,385
197

3,236
745
241
381
1,720
149
3,385
179

1,774
1,638

1,461
1,174

1,280
978

2,515
2,087

3,852
3,302

} 136

288

303

428

550

4,356 20,231 20,949 21,375 21,303 21,450
3,747 3,897 3,323 3,651 3,362 3,153
9,814 10,994 11,004 11,094 11,105
6,332 6,418 6,517 6,654 7,022
609
215
201
193
188
171

2,945

3,358

3,213

18
886
1,296

298
1,048
1,284

415
1,251
1,202

8,062
4,834
363
1,475
1,040

8,046
4,798
421
1,739
728

745

728

345

350

360

300

1,182
150
619
414

1,068
156
640
272

2,379
185
665
958
570

Commodity Credit Corporation
General Services Administration...
Other agencies
Land, structures, and equipment, total
Commerce Dept. (primarily maritime activities)
Panama Canal Company^
,
Tennessee Valley Authority
Housing and Home Finance Agency

Post Office Department
Other agencies

Bonds, notes, & debentures payable (not guar.), total... 1,190
Banks for cooperatives
110
520
Federal intermediate credit banks
Federal home loan banks
560

1,369
170
674
525

NOTE.—Statistics beginning Mar. 31, 1956, reflect the expanded coverage and the new classification of agencies now reported in the Treasury
Bulletin. The revised statement includes a larger number of agencies, and
their activities are classified according to the type of fund they represent.
Funds are combined in the table above, but are shown separately in the
table on the following page. Classifications by supervisory authorities
are those in existence currently. Where current Treasury compilations
do not provide a detailed breakdown of loans, these items have been
classified by Federal Reserve on basis of information about the type of
lending activity involved.
Data for agencies classified by type of fund and activity include all
those reporting on a fiscal year basis.
* Totals adjusted to reflect exclusion of agencies reporting other than
quarterly.
i Figures for trust revolving funds include interagency items. For all
types of funds combined, loans by purpose and agency are shown on a
gross basis; total loans and all other assets, on a net basis, i. e., after
reserve for losses.




1,330
181
704
445
2

7,822
4,822
421
1,829
450

5,779
1,083
256
405
1,810
166
3,385
253

3,720
1,054
248
422
1,812
183
3,385
283

3,739
1,018
256
458
1,825
181
3,385
284

3,923
1,095
265
479
1,898
186
5,555
344

3,881
1,017
274
482
1,914
194
5,555
340

9,682 10,028
4,612 4,548
400
398
1,723 1,712
285
311
278
306
309
1,199 1,302
590
590
538
608

9,985
4,502
398
1,762
236
276
311
1,298
590
613

9,875
4,470
396
1,751
144
277
317
1,226
590
704

9,979
4,506
401
1,803
114
281
327
1 332
599
616

2,742
188
865
918
770

2,711
257
721
963
770

2,975
231
803
720
1,220

3,497
190
953
733
1,620

2,607
152
857
928
670

Coverage changed from preceding period (see also NOTE).
3 Adjusted figures; for amounts reported for this date but excluded
from this figure, see BULLETIN for May 1957, p. 550, note 3.
4 Effective Jan. 1, 1957, the production credit corporations were merged
in the Federal intermediate credit banks, pursuant to the Farm Credit
Act of 1956, approved July 26, 1956 (70 Stat. 659). Thereafter operations
of the banks are classified as trust revolving transactions.
5 Less than $500,000.
6 Figures represent largely the Treasury loan to the United Kingdom,
and through 1952 are based in part on information not shown in Treasury
7
compilation.
Figure derived by Federal Reserve.
8 Includes investment of the Agricultural marketing revolving fund in
the banks for cooperatives; Treasury compilations prior to 1956 classified
this item as an interagency asset.
9 Figures prior to 1951 are for the Panama Railroad Company. The
Panama Canal Company, established in 1951, combined the Panama
Railroad Company with the business activities of the Panama Canal
(not reported prior to that time).

327

FEDERAL BUSINESS-TYPE ACTIVITIES
PRINCIPAL ASSETS AND LIABILITIES OF FEDERAL BUSINESS-TYPE ACTIVITIES
[Based on compilation by Treasury Department.

In millions of dollars]
Liabilities, other than
interagency items i

Assets, other than interagency items 1
Investments

Date, and fund or activity

Loans
Total

Cash

ceivable

Bonds, notes,
and debentures payable

Land,
struc-

In-

venand Other Guartories Public Other equipdebt secu- ment
anteed Other
secu- rities
by
rities
U.S.

PriU. S. vately
Govt. owned
Other inter- interliabilest
ities

All activities
1951—Dec.
1952—Dec.
1953—Dec.
1954—Dec.
1955—Dec.

312
312
312
31
31

26,744
931 14,422 1 ,461
29,945
944 17,826 1 ,780
38,937 1,190 19,883 2 ,514
41,403 1 371 19,348 3 859
45,304 1,338 20,238 4

1956—June 30*
Sept. 30

66,797
69,143
69,653
69,895
69,059

Dec 31*
1957—Mar. 31
June 30*

4,457 19,844
5,144 20,331
4 996 20,657
4,441 21,353
3,981 20,980

90 ,731

2
?
2
?

226
4?1
602
967

3 ?36

3
3
3
3

463
4?9
425
43?

3,358
882
83?
3 213
8,062 ,261
9 387
8 046
414 7 822 4 900

3 719

3 638 9 682 5 996
20 ,949 3 720 3 668 10,028 5 ,303
?1 ,375 3 739 3 669 9 985 5 232
?1 .303 3 993 3 7?9 9 875 5
21 ,450 3 881 3 725 9,979 5 ,063

1,161 23,842
1 728 26 456
3,818 33,429
4 183 35 610
44 ? 379 2 703 39,583
369
330
182
068

329
378
434
508

49 9 607

3 238 60,224
677
3,145 62,507
693
3 659 62 516
699
775
3 713 62,364
3,325 61,144 1,037

43
53
75
33

1
1
1
1

58 2 742
67 9 711
68 ? 975
57 3 497

596

Classification by type of fund
and activity, June 30, 1957
Public Enterprise Funds—Total
Farm Credit Administration: 4
Federal Farm Mortgage Corporation
Agricultural Marketing Act, revolving fund
Agriculture Department:
Commodity Credit Corporation
Disaster loans, etc. revolving fund
All other
Housing and Home Finance Agency:
Federal Housing Administration
Federal National Mortgage Association
Office of the Administrator
Federal Saving and Loan Insurance Corporation
Small Business Administration
Export-Import Bank
.
Tennessee Valley Authority
Panama Canal Company
Veterans Administration
General Services Administration
Treasury Department
Post Office Department—postal fund
Interior Department
All other

18,762 1,217 8,150 3 ,921
11
186
5,399
129

790

1
39
61 1,532 3 ,153
92
32

41

25

153

33

165

20

8
276
14
27
10
2
25
78
21
1
80
27
32
25
75

93

784
2,396
689
284
215
2,737
2 026
460
824
913
295
862
219
139

25
1 2,381
119
451
1
149
64
44 2,667
102
30
522
261
44
232
29
217
46
9
45
13

482

(5)

(5)

4?
8
4
686
1
13
9
6

Certain Other Activities—Total
General Services Administration
Agriculture Department:
Farmers Home Administration
Rural Electrification Administration
Other
Atomic Energy Commission
Federal Civil Defense Administration
Veterans Administration
Civil Aeronautics Administration
Health Education and Welfare Department
Interior Department
International Cooperation Administration
Treasury Department
Commerce Department—maritime activities...
All other

588
204

306

71

708

(5)

4,552
455
1,930
2,166

71 1,461
21
381
3
47 1,079

Certain Trust Revolving Funds—Total
Federal National Mortgage Association
Federal intermediate credit banks
Office of Alien Property
...
All other

2,637
1,255
1 125
204
53

205 2,221
52 1,197
12
997
133
9
27

1° Includes $1,000 million due under the agreement with Germany
signed Feb. 27, 1953, and lend-lease and surplus property balances due
the United States in the principal amount of $2,048 million.

218

7 575
2 ,891

638
P0

5

( )

6
56
750

(=>

(

287 8 155
3'244
774
61

(

?

13

100
8

(5)

7
712
1 2,709
21 1,397
206 8 417
233
137 1 765
1
608
898
157
376 3,375
3 4,025
774 12,601
132 4,925
51 1,769

31
9
12
10

923
190
733

103
6
18
70
9

2 ,004
1 050
953

1
1 Figure represents total trust interest.
For other notes, see opposite page.

245

1,895 51,641
29 8,207

23
129
86
419
2
1 340
98
196
246
3
1
260
56->
2 891
17
14
3 ,563
765 105,219
51
4,473
296
85 1 093
13

590
139
39 1,787
6
683
270
14
214
C5)
28 2,709
33 1 993
446
14
813
11
14
899
295
1
649
212
211
7
120
19

287

879
5 130

2 ,976
44
1 ,914
1 ,017

120

723 12,419

(5)

(

35

33

649 18,266 7 295
1,220
147

108

(5)

917 4,482
1
128

52
51
21
4

112
7

10
186

(5)

128

106

( 5)

11

627 (5)
719
70
2,711
3 2,579
6
1,418
448
1 749
8 622 1 324
174
233
55
1 902
355
107
2
26
141
'609
2
1,055
790
8
4
3,752
287
1
4,028 1,885 2,111
44
278 3,506
13,375
3
270
259
5,057
1
15
324
1,820

...

'401
2
103
7
599
130

34

53,536 6,712 9,287 8 .T?1
82 6 ,293
8,236
492

8 442
3,530
863

(5)

274
(5)

570 1,494 16,641

57
(5)

489
5
5

11

13,142 1,572




10

147

Intragovernmental Funds—Total
Defense Department:
Army
Navy
.
..
Air Force
All other

Certain Deposit Funds—Total
Banks for cooperatives
..
Federal Deposit Insurance Corporation
Federal home loan banks

149 3,326 1 ,209

846 2,024
3
228
134 1,796
709
63
29
21
1
12

758
34
724

292 H278
149 H26
143
H202
1142

328

FEDERAL FINANCE
SUMMARY OF FEDERAL FISCAL OPERATIONS
[On basis of U. S. Treasury statements and Treasury Bulletin. In millions of dollars]
Derivation of Federal Government cash transactions
Receipts from the public,
other than debt
Period

Net Federal cash borrowing or
repayt. ( —) of borrowing
Excess
of rects.
Infrom,
Less:
Equals:
crease,
or
Equals: payts.
Net
or decash
Total to ( - ) , crease
Net
payts.
Other borrow( - ) , in inv. by
the
noning or
to the
public
debt
Govt.
cash
public
(direct agen. & debt 4 repayt.
()
& agen.) tr. funds

Payments to the public,
other than debt

Equals:
Total
Budget
rects.
expendifrom
tures
the
public 2

Plus:
Trust
fund
expenditures

Less:
Adjustments 3

71,448
80,330
84,520

66,129
67,216
71,692

9,331
10,342
14,792

3,282
2,751
3,158

72,178
74,805
83,327

-729
5,525
1,194

3,484
-3,561
467

2,476
2,481
1,572

566
-136
63

448
-5,910
-1,168

2,110
2,061
2,739
3,243

71,627
67,836
77,088
82,106

67,772
64,570
66,540
69,433

7,204
8,546
9,436
12,961

3,117
2,578
3,358
2,387

71,860
70,538
72,617
80,007

-232
-2,702
4,471
2,099

5,186
3,986
-578
-1,053

2,055
1,533
3,166
2,339

618
644
623
-292

2,512
1,809
-4,366
-3,100

5,456
6,229
6,169
8,200
7,167

1,289
1,450
1,573
1,670
1,410

29,397
47,691
32,643
49,463
35,057

33,125
33,415
33,801
35,632
36,060

4,396
5,040
5,302
7,659
7,133

1,096
2,262
485
1,902
1,254

36,426
36,191
38,618
41,389
41,938

-7,028
11,499
-5,974
8,073
-6,881

7,019
-7,597
4,036
-5,089
5,556

1,331
1,835
646
1,693
-120

369
254
-390
98
-35

5,323
-9,689
3,779
-6,879
5,711

106
80
96
90
117
,182
113
115
126
167
186
703

5,349
7,564
11,704
5,244
7,280
12,322
3,801
6,786
8,066
3,896
6,075
6,433

6,095
5,743
5,584
5,987
5,944
6,279
6,347
5,930
5,667
6,501
5,806
5,809

1,112
1,095
1,342
1,491
1,344
1,275
1,220
1,075
1,086
1,387
964
1,402

1,111
-250
296
258
367
122
408
-180
-2
386
550
92

6,096
7,088
6,630
7,220
6,923
7,431
7,160
7,185
6,754
7,501
6,219
7,119

-747
476
5,073
-1,976
358
4,891
-3,359
-399
1,311
-3,605
-144
-686

-195
142
-1,160
-813
1,432
-4,496
1,992
1,462
634
476
655
337

-126
209
108
-469
1,241
728
-382
646
-310
9
4
-87

367
-103
-126
-174

-435
37
-1,142
-170
-67
-5,100
2,373
776

-13
40

500
665
383

234

5,366

6,011

1,651

1,293

6,369

-1,003

-137

-119

18

-36

Net
Budget
rects.

Plus:
Trust
fund
rects.

Cal. year—1955
1956
1957

63,358
70,994
72,285

10,624
12,398
15,367

2,511
3,027
3,080

Fiscal year—1954
1955
1956
1957

64,655
60,390
68,165
71,029

9,155
9,536
11,685
14,369

Semiannually:
1955—July-Dec
1956—Jan.-June
July-Dec
1957—Jan.-June
July-Dec

25,240
42,925
28,069
42,960
29,325
4,809
6,188
10,737
4,256
5,282

Monthly:
1957—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

11,688
3,057
5,128
7,225
3,131
4,827
5,956

650
1,458
1,068
1,083
2,121
1,820
858
1,778
972
938
1,438
1,184

1958—Jan.^

4,786

Less:
IntraGovt.
trans.*

820

257
-123

40
-69
-32

1,014

Effects of operations on Treasurer's account
Operating transactions

Net
Budget
surplus,
or
deficit

Financing transactions

Trust
fund
Reconaccumu- ciliation
lation, to Treas.
or
cash
deficit
tions5

Fiscal year—1954

Cash balances:
inc., or dec. (—)

Account of Treasurer of United
States (end of period)

Net
Increase,
inv. ( - )
or
in Fed. decrease
Held
sec. by
( - ) , in
outside
Govt.
gross
Treasury
agency
direct
& trust
public
funds 5
debt

Treasurer's
account

Balance

F. R.
Banks
(available
funds)

Treasury
Tax and
Loan
Accts.

Other
net
assets

Deposits in—

1955
1956
1957

-3,117
-4,180
1,626
1,596

1,951
991
2,250
1,409

-46
-29
309
-518

-14
602
173
1,085

-1,609
-1,362
-2,617
-2,300

5,189
3,115
-1,623
-2,224

257
-312
-213
5

2,096
-551
331
-956

6,766
6,216
6,546
5,590

875
380
522
498

4,836
4,365
4,633
4,082

,055
,471
,391
,010

Semiannually:
1955—July-Dec
1956—Jan.-June
July-Dec
1957—Jan.-June
July-Dec

-7,885
9,511
-5,732
7,328
-6,735

,060
,190
866
543
34

92
217
-482
-36
159

-139
312
-5
1,090
1,007

-1,217
-697
-1,603
21

6,394
-8,017
3,877
-6,101
4,371

-24
-189
-55
60
-160

-1,671
2,002
-2,119
1,163
-984

4,545
6,546
4,427
5,590
4,606

397
522
441
498
481

3,036
4,633
2,924
4,082
3,084

,391
,062
,010
,041

Monthly:
1957_jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

-1,286
446
5,153
-1,731
-662
5,409
-3,290
-802
1,559
-3,370
-979
147

-462
363
-274
-408
777
547
-362
703
-115
-449
474
-218

390
-200
275
333
59
-894
384
-288
43
282
382
-644

205
35
298
253
153
147
19
87
-6
745
-23
186

374
-169
-245
402
-1,255
-708
324
-694
282
36
-8
80

-399
40
-1,271
-991
1,226
-4,707
1,942
1,376
567
-345
679
151

-17
-69
112
-11
44
131
-40
-106
-72
-33
-40

-1,162
584
3,824
-2,142
308
-250
-1,115
423
2,436
-3,028
558
-259

3,265
3,849
7,673
5,532
5,840
5,590
4,475
4,898
7,335
4,307
4,865
4,606

715
458
591
509
568
498
504
477
429
552
243
481

1,161
2,027
5,912
3,516
4,318
4,082
2,833
3,331
5,818
2,572
3,583
3,084

1,389
1,364
1,170
1,507
954
1,010
1,138
1,090
1,088
1,183
1,039
1,041

-1,225

-831

600

225

541

-343

68

-1,101

3,505

469

1,767

1,269

1958—Jan

-1,400

P Preliminary.
1
Consists primarily of interest payments by Treasury to trust accounts
and to Treasury by Govt. agencies, transfers to trust accounts representing
Budget expenditures, and payroll deductions for Federal employees retirement funds.
2 Small adjustments to arrive at this total are not shown separately.
3 Consists primarily of (1) intra-Governmental transactions as described in note 1, (2) net accruals over payments of interest on savings




bonds and Treasury bills, (3) Budget expenditures involving issuance of
Federal securities, (4) cash transactions between International Monetary
Fund and the Treasury, (5) reconciliation items to Treasury cash, and
(6)4 net operating transactions of Govt. sponsored enterprises.
Primarily adjustments 2, 3, and 4, described in note 3.
5
Excludes net transactions of Govt. sponsored enterprises, which are
included in the corresponding columns above.

329

FEDERAL FINANCE
DETAILS OF FEDERAL FISCAL OPERATIONS
[On basis of Treasury statements and Treasury Bulletin unless otherwise noted.

In millions of dollars]
Selected excise taxes
(Int. Rev. Serv. repts.)

Budget receipts
Adjustments from total
Budget receipts
Period

Fiscal year—1954

Net
Budget
receipts

Transfers t o Oldage
trust
fund*

High- R. R.
reway
trust tirefund ment
acct.

Refunds
of
receipts

Income and
profits taxes
Total
Budget
receipts

Employment
taxes2

Other
receipts

Liquor

Mfrs.'
Tobacco and retailers'

21,523 10,014
18,265 9,211
21,299 10,004
21,531 10,638

5,425
6,220
7,296
7,581

3,829
4,108
4,887
4,895

2,798
2,743
2,921
2,973

1,581
1,571
1,613
1,674

3,127
3,177
3,778
4,098

2,699 4,109
8,623 17,190
3,004 5,553
9,298 15,978
2,874 6,273

5,052
4,952
5,325
5,313
5,595

3,283
4,013
2,876
4,705
3,445

2,526
2,361
2,267
2,628
2,625

1,524
1,397
1,648
1,325
1,574

792
821
817
857
848

1,890
1,888
1,876
2,222
2,226

186
197
231
214
243
257
244
241
260
323
285
221

151
132
138
133
161
142
146
157
146
159
133
106

Individual
Corporation

Withheld

Other

10,747
10,396
11,322
12,302

Excise
taxes

64,655
60,390
68,165
71,029

4,537
5,040
6,337
6,634 1,479

603
599
634
616

3,377
3,426
3,684
3,917

73,173
69,454
78,820
83,675

21,635
21,254
24,012
26,728

Semiannually :
1955—July-Dec
1956—Jan.-June
July-Dec
1957—Jan.-June
July-Dec

25,240
42,925
28,069
42,960
29,325

2,927
3,410
643
2,559
836
4,075
3,135 1,151

318
316
312
304
305

496
3,188
463
3,454
655

28,981
49,839
32,045
51,630
34,571

11,312
12,700
13,020
13,708
13,760

Monthly:
1957—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

4,809
6,188
10,737
4,256
5,282
11,688
3,057
5,128
7,225
3,131
4,827
5,956

255
1807
632
617
1,229
536
346
919
486
332
671
382

141
205
120
124
109
137
174
219
207
183
203
165

21
83
50
15
83
52
19
84
54
30
69
49

52 5,279
203 7,486
606 12,145
1,130 6,142
1,057 7,759
406 12,819
138 3,734
124 6,475
137 8,109
120 3,796
76 5,845
59 6,611

1,025
3,838
2,083
819
3,690
2,252
1,047
3,678
2,163
1,333
3,415
2,125

2,101
871
785
2,827
897
1,818
269
128
1,823
204
97
352

461
445
7,327
520
502
6,722
541
355
2,304
429
367
2,277

856
874
931
812
965
875
955
965
922
1,088
840
824

316
1,160
692
633
1,314
589
366
1,003
540
363
740
432

520
298
327
531
391
563
556
346
357
379
386
601

1958—Jan

4,786

313

151

19

5,243

981

2,053

486

892

385

446

1955
1956
1957

-25

1,119
1,102
1,124
1,102

n.a.

Budget expenditures 3
Agriculture
VetGenand
Comerans' Labor
NatIntl.
eral
agriural
merce
affairs Interservand
regovernand
Defense Mutual Atomic and
est ices and welfare cultural sources housing ment
Dept., security, energy finance
beneremilitary program
fits
sources

Major national security
Period
Total
Total 4

Fiscal year:
1953
1954
1955
1956
1957

74,274
67,772
64,570
66,540
69,433

51,830
47,872
42,089
41,825
44,414

43,611
40,335
35,533
35,791
38,440

5,421
4,596
3,755
3,795
3,495

,791
,895
,857
,651
,990

749
765
719
662
832

6,583
6,470
6,438
6,846
7,308

4,298
4,256
4,457
4,756
4,793

2,426
2,485
2,552
2,776
2,966

2,936
2,557
4,411
4,913
4,582

1,476
1,315
1,202
1,104
1,296

2,502
814
1,502
2,028
1,453

1,474
1,239
1,201
1,629
1,789

Semiannually:
1955—July-Dec. 6
1956—Jan.-June 7
July-Dec
1957—Jan.-June 7

33,125
33,415
33,801
35,632

20,421
21,190
21,145
23,269

17,917
17,873
18,547
19,893

1,383
2,197
1,464
2,031

797
854
930
,060

212
664
382
450

3,349
3,497
3,587
3,721

2,330
2,426
2,291
2,502

,348
,428
,421
,545

2,775
2,138
2,183
2,399

614
490
736
560

1,137
891
879
574

940
689
1,181
608

Monthly:
1956—Nov
Dec

5,726
5,718

3,664
3,651

3,276
3,295

201
178

160
153

72
57

585
635

407
405

207
197

319
435

175
106

213
142

102
102

1957_Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov

6,095
5,743
5,584
5,987
5,944
6,279
6,347
5,931
5,666
6,501
5,806

3,833
3,654
3,788
4,011
3,869
4,114
3,628
3,989
3,589
3,700
3,506

3,335
3,245
3,224
3,544
3,279
3,266
3,108
3,545
3,148
3,222
3,035

269
214
349
253
377
569
311
215
226
240
254

182
150
169
183
184
192
170
190
169
190
183

29
65
43
44
57
212
77
96
53
360
104

655
592
606
611
610
647
665
635
638
647
646

410
407
414
419
444
408
377
382
362
421
432

330
236
209
285
208
277
317
272
239
358
226

551
312
397
455
308
376
664
215
386
529
404

87
94
85
82
106
106
129
161
138
158
147

85
268
-19
-6
139
107
241
108
269
222
196

100
98
81
101
124
104
120
100
104
115
119

n.a. Not available.
1
Beginning February 1957, includes transfers to Federal disability
insurance trust fund.
2 Represents the sum of taxes for old-age insurance, railroad retirement, and unemployment insurance.
3 For more details, see the 1959 Budget document, pp. 890-96 and
pp. 954-55 and the Treasury Bulletin, Table 3 of section on Budget receipts
and expenditures.
4
Includes stockpiling and defense production expansion not shown
separatelv.




5
Periodic revisions of Treasury statement data for fiscal years given
without corresponding monthly revisions; consequently monthly and
semiannual data may not add to totals.
6 Data are from Treasury Bulletin for June 1956 and are not fully comparable with data in subsequent Bulletins or with other data in this
table.
7 Derived by subtracting totals for July-December from totals for fiscal
year.

330

FEDERAL FINANCE
UNITED STATES GOVERNMENT DEBT, BY TYPE OF SECURITY
[On basis of daily statements of United States Treasury.

In billions of dollars]

Public issues3
Nonmarketable

Marketable
Total
gross
debt*

End of
month

Total
gross
direct
debt 2

Bonds

Total
Total

Bills

Certificates of
indebtedness

Notes

Bank
eligible 4

1941_Dec
1945 Dec
1947—Dec
1951 Dec
1952 Dec
1953—Dec
1954 Dec
1955—Dec
1956 Dec

64.3
278.7
257.0
259.5
267.4
275.2
278.8
280.8
276.7

57.9
278.1
256 9
259.4
267.4
275.2
278.8
280.8
276.6

50.5
255.7
225.3
221.2
226.1
231.7
233.2
233.9
228.6

41.6
198.8
165 8
142.7
148.6
154.6
157.8
163.3
160.4

20
17.0
15 1
18.1
21.7
19 5
19.5
22 3
25.2

38.2
21 2
29.1
16.7
26 4
28.5
15 7
19.0

23.0
11 4
18.4
30.3
31 4
28.0
43 3
35.3

33.6
68.4
68 4
41.0
58.9
63.9
76.1
81.9
80.9

1957

276.4
275 1
274.1
275.3
270.6
272.6
274.0
274.5
274.2
274.9
275.0
274.7
274.8

276.3
275 0
274.0
275 2
270.5
272 5
273.8
274.4
274.1
274.7
274.9
274.6
21 A.I

228.4
227 2
226.9
226.9
221.7
224.3
225.3
226.5
226.3
227.1
227.1
227.3
227.0

160.9
159 9
160.0
160 3
155.7
158 8
160.2
161.8
162.2
163.4
164.2
164.6
164.5

25.9
25 3
25.3
26 8
23.4
26 4
28.2
26.7
26.7
26.7
26 9
27.3
26.1

20.2
19 4
19.4
21 8
20.5
20 5
34.1
35.0
34.7
34.7
34 6
34.6
31.5

33.9
34 4
34.4
30 9
31.0
31 1
17.1
19.3
19.4
20.6
20 7
20.7
20.5

Bank
restricted

Convertible
bonds

80.9
80 9
80.9
80 8
80.8
80 8
80.8
80.8
81.5
81.5
82 1
82.1
86.4

Feb
Mar
Apr
May
June
July
Aus
Sept
Oct
Nov
Dec
1958—j an
Feb
1

.

.

6.0

Includes some debt not subject to statutory debt limitation (amounting

to $435 million on Feb. 28, 1958) and fully guaranteed securities, not
shown separately.
2 Includes non-interest-bearing debt, not shown separately.
3
Includes amounts held by Govt. agencies and trust funds, which
aggregated $9,610 million on Jan. 31, 1958

Totals

Tax
and
savings
notes

Savings
bonds

Special
issues

6.1

2.5

7.0

12.5
12.0
11.8
11.4
10.8

56.9
59.5
66.4
65.0
65.1
63.6
59.2
57.4

48.2
52.1
57.6
57.9
57.7
57.7
57.9
56.3

8.2
5.4
7.5
5.8
6.0
4.5

20.0
29.0
35.9
39.2
41.2
42.6
43.9
45.6

10.6
10 5
10.4
10.3
10.3
10.2
10.1
9.9
9.7
9.6
9.5
9.5
9.3

57.0
56 7
56.5
56.3
55.7
55.3
55.0
54.8
54.4
54.1
53.4
53.2
53.2

55.8
55 6
55.4
55.2
54.6
54.3
54.0
53.8
53.5
53.2
52.5
52.3
52.3

8.9

52.2
49.6
36.0
21.0
13.4
5.7

ii.i

(6)

45.5
45 6
45.2
46.1
46.8
46.3
46.7
46.2
46.1
46.0
45.8
45.5
46.0

*> Includes Treasury bonds and minor amounts of Panama Canal and
Postal Savings bonds.
5 Includes Series A investment bonds, depositary bonds, armed forces
leave bonds, and adjusted service bonds, not shown separately.
6 Less than $50 million.

OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED

[Par value in billions of dollars]
Held by
U. S. Govt.
agencies and
trust funds1

Total
gross
debt
(including guaranteed
securities)

Special
issues

Public
issues

1941—Dec
1945—Dec
1947_Dec
1951—Dec
1952—Dec
1953—Dec
1954—Dec
1955—Dec
1956—June
Dec

64.3
278.7
257.0
259.5
267.4
275.2
278.8
280.8
272.8
276.7

7.0
20.0
29.0
35.9
39.2
41.2
42.6
43.9
45.1
45.6

2.6
7.0
5.4
6.4
6.7
7.1
7.0
7.8
8.4
8.4

54.7
251.6
222.6
217.2
221.6
226.9
229.2
229.1
219.3
222.7

2.3
24.3
22.6
23.8
24.7
25.9
24.9
24.8
23.8
24.9

1957_Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

276.3
276.4
275.1
274.1
275.3
270.6
272.6
274.0
274.5
274.2
274.9
275.0

45.3
45.5
45.6
45.2
46.1
46.8
46.3
46.7
46.2
46.1
46.0
45.8

8.6
8.6
8.6
8.5
8.7
8.7
8.8
9.1
9.2
9.4
9.3
9.4

222.4
222.3
221.0
220.4
220.5
215.1
217.4
218.2
219.1
218.7
219.5
219.8

23.4
22.9
23.1
23.2
23.1
23.0
23.4
23.5
23.3
23.3
23.7
24.2

End of
month

1
2

Held by the public

Total

Includes the Postal Savings System.
Includes holdings by banks in territories and insular possessions,
which amounted to about $250 million an Dec. 31, 1956.




Mutual
savings
banks

Insurance
companies

Other
corporations

State
and
local
govts.

21.4
90.8
68.7
61.6
63.4
63.7
69.2
62.0
57.1
59.3

3.7
10.7
12.0
9.8
9.5
9.2
8.8
8.5
8.4
8.0

8.2
24.0
23.9
16.5
16.1
15.8
15.0
14.3
13.3
12.8

4.0
22.2
14.1
20.7
19.9
21.6
19.2
23.3
17.4
18.6

.7
6.5
7.3
9.6
11.1
12.7
14.4
15.1
15.7
16.1

5.4
42.9
46.2
49.1
49.2
49.4
50.0
50.2
50.3
50.1

8.2
21.2
19.4
15.5
16.0
15.4
13.7
15.4
17.2
17.0

.9
9.1
8.4
10.6
11.7
13.2
13.9
15.6
16.2
15.9

58.3
57.7
58.1
58.0
57.7
55.8
56.8
56.6
58.3
58.1
58.1
58.9

8.1
8.1
8.1
8.0
8.0
7.9
7.9
7.9
7.9
7.8
7.6
7.6

12.9
12.8
12.6
12.5
12.4
12.3
12.3
12.2
12.2
12.2
12.1
12.0

20.2
20.9
18.0
17.9
18.5
15.7
16.3
16.8
16.1
16.1
16.4
16.1

16.2
16.3
16.6
16.8
16.8
16.9
16.9
17.1
17.2
17.2
17.3
17.0

49.9
49.7
49.6
49.4
49.3
49.1
48.9
48.8
48.6
48.4
48.3
48.2

17.3
17.8
18.6
18.6
18.3
18.3
18.7
19.2
19.6
19.5
19.6
19.3

16.2
16.2
16.3
16.0
16.4
16.1
16.3
16.0
16.0
16.1
16.4
16.4

Federal ComReserve mercial
Banks banks2

Individuals
Other
Savings
bonds securities

Misc.
investors 3

3
Includes savings and loan associations, dealers and brokers, foreign
accounts, corporate pension funds, and nonprofit institutions.
NOTE.—Reported data for Federal Reserve Banks and U. S. Govt.
agencies and trust funds; Treasury Department estimates for other groups.

331

FEDERAL FINANCE

UNITED STATES GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES OUTSTANDING, FEBRUARY 28, 1958*
[On basis of daily statements of United States Treasury. In millions of dollars]
Issue and coupon rate

Amount

2

Treasury bills
Mar. 6, 1958
Mar. 13, 1958
Mar. 20, 1958
Mar. 24, 1958
Mar. 27, 1958
Apr. 3,1958
Apr. 10, 1958
Apr. 15, 1958
Apr. 17, 1958
Apr. 24, 1958
May 1,1958
May 8,1958
May 15, 1958
May 22, 1958
May 29, 1958
Apr. 15, 1958

2

Amount

Issue and coupon rate

334
2y2

11,519
9,833
9,767

Treasury notes—Cont.
Aug. 15, 1962
4
Oct. 1,1962
11/2
Nov. 15, 1962
334

n/2
2%
11/2
1%
iy2
IK
iy2
31/2
W2
n/ 2
4
U/2
3%
11/2

50
4,392
121
5,102
119
99
198
2,406
278
144
2,609
332
647
551

Treasury bonds
Mar. 15, 1956-583. .2y 2
Sept. 15, 1956-59 3.. 214
Mar. 15, 1957-593. .23/8
June 15, 1958
23/8
June 15, 1958-63 4.. 234
Dec. 15, 1958
2y2
June 15, 1959-62...iy4
Dec. 15, 1959-62... 2|4
Nov. 15, 1960
2i/8
Dec. 15, 1960-65 5.. 234
Sept. 15, 1961
234
Nov. 15, 1961
21/2
Aug. 15, 1963
21/2
June 15 1962-67... 21/2

Certificates—Cont.

1,800
Aug. 1,1958...
1,803
Dec.
1958
1,700
Feb. 14; 1959
3,002
1,700 Treasury n ites
1,700
Apr. 1 1958
1,700
June 15, 1958
607
Oct.
1958
1.701
Feb. 15 1959
1.702
Apr. 1 1959
1.701
Oct. 1 1959
1,700
Apr. 1 1960
1,709
May 15 1960
1,801
Oct. 1 1960
1,802
Apr. 1 1961

Certificates

1

Issue and coupon rate

357

Aug.
Oct.
Feb.
Apr.

1
1
15;
1

1961
1961
1962
1962

Direct public issues.
Sold on discount basis. See table on Money Market Rates, p. 323.

Amount
2,000
292
1,143

Issue and coupon rate
Treasury bonds—Cont.
Dec. 15, 1963-68... iy2
Feb. 15, 1964
3
June 15, 1964-69. ..2^/2
Dec. 15, 1964-69... 2V2
Mar. 15, 1965-70.. .2y2
Mar. ,5, 1966-71.. .2i/ 2
June 15, 1967-72... 2%
Sept. 15, 1967-72... 2%
Dec. 15, 1967-72... 21/2
Oct. 1,1969
4
Nov. 15, 1974
3%
June 15, 1978-83... 3 lV
4
Feb. 15, 1990
3A
Feb. 15, 1995
3
Panama Canal L o a n . . . . 3

180
3,818
927
4,245
919
2,368
5,269
3,457
3,806
1,485
2,239
11,177 Convertible bonds
6,755
Investment Series B
2,113
Apr. 1, 1975-80... 2 34

3 Not called for redemption on first call date.
interest payment dates.
4
Called for redemption on June 15.
5
Partially tax-exempt.

Amount

2,822
3,841
3,747
3,822
4,705
2,952
1,852
2,716
3,752
657
654
1,604
1,722
2,742
50

9,334

Callable on succeeding

OWNERSHIP OF UNITED STATES GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES 1
[On basis of Treasury Survey data. Par value in millions of dollars]
* Marketable and convertible securities, by type
Type of holder and date

Marketable securities, by maturity class

Total

Bills

Certificates

Notes

Market- Conable
vertible
bonds 2 bonds

166,882
166,050
171,137
165,985
173.028
173,718

19,514
2), 808
25,179
23,420
26,660
26,857

13,836
16,303
19,023
20,473
34,692
34,554

40,729
35,952
35,294
30,973
20,598
20,664

81,128
81,890
80,878
80,839
81,470
82,117

7,162
8,236
8,242
8,554
9,165
9,260

40
273
142
130
137
130

8
355
353
416
670
657

119
688
842
1,282
1,608
1,617

3,556
3,575
3,669
3,664
3,810
3,933

Federal Reserve Banks:
1955—June 30
1956—June 30
Dec. 31
1957—June 30
Nov. 30
Dec. 31

23,607
23,758
24,915
23,035
23.733
24,238

886
855
1.918
287
814
1,220

8,274
10,944
10,975
11,367
20,044
20,104

11,646
9,157
9,219
8,579
40
87

802
802
802
802
836

2,827

Commercial banks:
1955—June 30
1956—June 30
Dec. 31
1957—June 30
Nov. 30
Dec. 31

55,667
49,673
51,466
48,734
50.757
51,712

2,721
2,181
4,934
2,853
514
332

1,455
1,004
1,600
2,913
3,980
4,046

15,385
11,620
10,714
8,984
9,633
9,672

35,942
34,712
34,071
33,839
33,491
33,529

Mutual savings banks:
1955_june 30
1956—June 30
Dec. 31
1957_june 30
Nov. 30
Dec. 31

8,069
7,735
7,431
7,397
7,203
7,209

84
107
131
163
132
122

53
37
24
114
167
167

289
356
312
367
454
438

Insurance companies:
1955—June 30
1956—June 30
Dec. 31
1957_june 30
Nov. 30
Dec. 31

13,117
11,702
11,331
10,936
10,937
10,801

630
318
349
326
401
291

74
44
66
136
236
248

Other investors:
1955—June 30
1956—June 30
Dec. 31
1957—June 30
Nov. 30
Dec. 31

59,260
64,947
67,752
67,329
71,233
70,499

15,153
17,074
17,705
19,661
21,663
20,762

3,973
3,919
6,004
5,527
9,595
9,331

All holders:
1955—June
1956—June
Dec.
1957—June
Nov.
Dec.

30
30
31
30
30
31

U. S. Govt. agencies and trust funds:
1955—June 30
1956—June 30
Dec. 31
1957—June 30
Nov. 30
Dec. 31

1 Direct public issues.
2 Includes minor amounts of Panama Canal and Postal Savings bonds.
NOTE.—Commercial banks, mutual savings banks, and insurance com-




Total

Within
1 year

1-5

5-10

Over 10
years

11,676
11,098
10,763
10,280
9,609
9,527

155,206
154,953
160,374
155,705
163,419
164,191

49,703
58,714
68,557
71,033
71,941
74,368

38,188
31,997
41,021
39,184
45,357
46,513

33,687
31,312
17,893
14,732
14,731
11,272

33,628
32,930
32,904
30,756
31,389
32,038

3,439
3,345
3,236
3,063
2,940
2,923

3,723
4,891
5,006
5,491
6.225
6,337

74
927
928
1,138
1,230
1,236

199
500
708
1,210
1,734
1,782

506
434
317
295
301
260

2,944
3,030
3,053
2,848
2,959
3,059

23,607
23,758
24,915
23,035
23,733
24,238

17,405
20,242
22,113
20,246
20,931
21,427

3,773
1,087
373
681
694
1,397

1,014
1,014
1,014
750
750
57

1,415
1,415
1,415
1,358
1,358
1,358

164
155
147
144
139
133

55,503
49,517
51,319
48,590
50,618
51,579

7,187
7,433
11,635
12,268
11,180
13,066

21,712
18,234
24,528
23,500
26,288
26,526

21,110
19,132
10,242
8,600
8,735
7,364

5,494
4,719
4,914
4,222
4,414
4,623

6,422
6,074
5,849
5,655
5,435
5,470

1,222
1,161
1,115
1,098
1,016
1,012

6,848
6,574
6,316
6,299
6,187
6,197

164
247
241
576
446
453

533
540
1,057
1,082
1,178
1,227

1,405
1,319
659
601
583
476

4,746
4,468
4,358
4,040
3,980
4,041

789
760
781
648
690
683

8,479
7,789
7,464
7,277
7,233
7,231

3,145
2,791
2,671
2,549
2,377
2,347

9,972
8,911
8,660
8,387
8,560
8,454

810
632
726
955
980
938

1,339
1,192
1,749
1,775
1,886
2,074

2,027
1,802
1,136
1,022
1,025
718

5,796
5,285
5,049
4,634
4,668
4,724

12,502
13,371
13,426
11,113
8,173
8,167

23,927
26,896
27,024
27,602
28,665
29,127

3,706
3,646
3,593
3,426
3,137
3,112

55,554
61,301
64,159
63,904
68,096
67,387

24,062
29,233
32,914
35,850
37,174
37,249

10,633
10,443
12,605
10,936
13,576
13,508

7,626
7,612
4,525
3,464
3,336
2,397

13,233
14,013
14,114
13,654
14,009
14,233

panies included in the survey account for over 90 per cent of total holdings
by these institutions. Data are complete for U. S. Govt. agencies and
trust funds and Federal Reserve Banks.

332

SECURITY ISSUES
NEW SECURITY ISSUES 1
[Securities and Exchange Commission estimates.

In millions of dollars]

Proposed uses of net proce eds,
all corporate issuers6

Gross proceeds , all issuers2
Corporate

Noncorporate
Year or
month

Total

FedU. S.
eral
Govt.3 agency4

1939.
1941
1945.

157
54 ,712

?
332
11 466
47 353

13
38
506

1950.
1951
1952.
1953.
1954.
1955.
1956
1957.

19 ,893
265
^6 ,929
?8 ,824
?Q 765
?6 ,772
405
30 ,631

9 687
9 778
P 577
13 957
P 532
9 628
5 517
9 601

30
110
459
106
458
746
169
572

496
386

State
and
mu- Others Total
nicipal

72

,687

2 ,432

1957- — Jan
Feb
Mar
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec

123
,248

.

.

362

,785
401
1 977
1 ,934

980
< ,670
7

1 327
390
394
362
400

3 027

511

1,276
1,578
3,851

1,004

6 361

7 601
7 083
7 488
7 4?0
8 00?
10 ,035

2,360
2,364
3,645
3,856
4,003
4,119
4,225
6,113

916
761

703
811

98
167
758

87
110
397

2,560
3,326
3,957
3,484
3,301
3,777
3,923

631
838
564
489
816
635
636
408

1,212
1,369
1,326
1,213
2,185
2 301
2,497

641
514

276
248

34
26

643
385
437
633
459

429

540
587

290
327

38
46
25
66
22

558
6 j 969
5 977
446
958

685
569

84
53

1, 094

503
763
539
388
516

32
128
51
44
38

1 386
956
80?
1J 547
1 i0??

1 ,07?
647
691
1 ,074
770

'640

15
65
2

1 0?8
1 078
849
1

911
676
773

608
485
182

753

200

785

717

505

PI

595
437
683
639

100

3 ,412

1958—Jan

164 1 980
2 667
,390
J
011 4 855
6,

?

282
446
237
306
289
182
334
559

215

n ,692

Pre- ComNew
mon
Pri- ferred stock Total money 7
stock
vately
placed

53?
189

60

894
1 374
925

Total

Publicly
offered

50
30
47

125

392
263

Bonds

1?8
956
795
3,
3
4,
5

1,163

10
37

New capital

4 9?0

7, 741 5 ,691

9
8
9
10
10
1? J

534
898
516
?40
939
941

116

937

830
913

254
441
311

811

420

4,006
6 531
8,180
7,960
6,780
7,957
9 663
11,830

868
1 041
1,347 1,080

31
19
68
24
10

150
341

213

28

39

1 875
1,227
364
248

11
22

9
24

9
40

765

29
28
43

10
41
21

672

16

86

864
707

991

930

1,086 1,043
688

486
664
260

21
13
15
31
15

924
771

792

1.271

73
61
64
69
60

914
905
949
973
100 1,055 1,026

303
191
592

1,695
1 583
4 555

38
144

1 489 1 419

76
96

69
144
134

364
620
363
226
537
535
709
864
721
643

144 1,063 1,026
329 1 071
927
1,344 1,271

276
264
85
407
230

RetireRetire- ment
ment
of
of
secubank rities
debt,
etc. 8

26
28
133

325

4,990
7 120
8,716
8,495
7,490
8,821
10 384
12,473

Miscellaneous
purposes

Proposed uses of net proceeds , major groups of corporate issuers
Manufacturing
Year or
month

Commercial and
miscellaneous

Transportation

Public utility

Communication

Real estate
and financial

RetireRetireRetireRetireRetireNew
New
ment of
ment of
New
New
ment of
ment of
New
New
ment of
secu- capital10
secu- capital10
secu- capital10
secu- capital10
secu- capital10
capital10
rities
rities
rities
rities
rities
1 026
2 846
3,712
2 128
2 044
2,397
3 336
4,097

1950
1951
1952
1953
1934
1955
1956
1957.
1957

Jan
Feb
Mar
Apr
May
June.
July
AUK

Sept
Oct
Nov
Dec
1958—Tan
r

381
543
366
314
135
626
234

149

474
462

63
56

24
40

758
553

225
36

190
533

831

93

501

51
51

544
694

270

612

49

8?0

14

6?
8
3
4
5

769
682
42
94
32
53
55
29
71

4
4
3
1
10

222
575

7

42
61

118

8

35

2

126

4
3

50
36
48

Revised.
Estimates of new issues sold for cash in the United States.
Gross proceeds are derived by multiplying principal amounts or number of units by offering price.
3
Includes guaranteed issues.
4 Issues not guaranteed.
5
Represents foreign governments, International Bank for Reconstruction and Development, and domestic eleemosynary and other nonprofit
organizations.
1

2




196
53

512
502

6
5
1
13

242
331

609
437

261
90

101
31
85
65
80
51
45

338
20

8

1,927
2,326
2,539
2,905
2,675
2,254
2,474
3,801
247
247
490
351
348
436
244

30
76

(9)

251
418

45

6

310

62
149
87

24

287
172
311

682
85

88
67

990

174
14
56
(9)

314
600

81
5

651

6
3
60
77
21

747
871

1,045
1,384
1,443

sg\

105
46
281
47
82
137
54

(9)
(9)

369

14
16
5

8

9
2

3
1
1
(9]
(9)

Retirement of
securities

639
449

100
66

788

273

448
1 536
1,812
1 815
1,701
187
108
91
93
72
210
343

60
24
56
17
64

(9)

92
41

a

215
47
88
88

30

20

50

116

2

126
65

158

1
30

6 Estimated net proceeds are equal to estimated gross proceeds less cost
of flotation, i.e., compensation to underwriters, agents, etc., and expenses.
7 Represents proceeds for plant and equipment and working capital.
8 Represents proceeds for the retirement of mortgages and bank debt
with original maturities of more than one year. Proceeds for retirement of
short-term bank debt are included under the uses for which the bank
debt was incurred.
9 Less than $500,000.
1
o Represents all issues other than those for retirement of securities.

333

BUSINESS FINANCE
SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS
[In millions of dollars]

Quarterly totals

Annual totals

1956

Industry
1951

1952

1953

1954

1955

1957

1956
1

2

3

4

1

2

3

Manufacturing
Total (200 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends
Nondurable goods industries (94 corps.): 1
Sales
Profits before taxes
Profits after taxes
Dividends
Durable goods industries (106 corps.): 2
Sales
Profits before taxes
Profits after taxes
Dividends
Selected industries:
Foods and kindred products (28 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends
Chemicals and allied products (26 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends
Petroleum refining (14 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends
Primary metals and products (39 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends
Machinery (27 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends . . .
Automobiles and equipment (15 corps.):
Sales
Profits before taxes
Profits after taxes
Dividends

5 ? , 940 54, 517 63 343 58 ,110 6 9 J 876 71 901
8, 869 7 , 308 8 375 7 ,244 10, 250 9 ,253
4 84?
649 1 ,8?5 5 ?11
1 548 J
7 ,97?
? J 075 9 073 ? 154
,184 ?J 8?7
916 19, ?66 ?0 694 ?0 ,6?0
3, 447 2, 853 3 028 2 ,753
1, 511 1, 39? 1 5?6 1,581
9?5
946
97? 1 ,064

106

3, 413
j'

918

457 16 119 19,193 19,754 19,424 17 994
509 1,700 2,441 2,751 2,575 2,053
105
914 1 321 1 420 1 339 1 107
723
752
706
841
757
757

18 131
2,603 2
1 302
703

,76? 6 079 f, 115 6 084 6,464
808
3 ,468
877
876
907
1 985
-191
466
526
503
1 ,?49
795
305
290
359

?4

34 0?4 35, ?51 4? 649 17 ,490 46, 770 47 ,139
346 4 ,491 6, 836
5 ,784
5, 422 4, 455
800
? J 015
? ,?44 1, 313
,857
127 1 182 1 ,320
625
1 ,724
1, 149

6,604
941
537
315

6,510 6,522
873
844
503
487
318
319

12,052 1? 1?? 10 036 12,730 13,150 12,914 11,472
892 1,564 1,810 1,702 1,209
1,696
633
448
794
883
836
620
799
815
418
482
439
437
438
413
411

4 909 5, 04? 5 411 5 ,476 5, 811
453
499
465
46?
471
?03
?44
154
154
156
160
159

6 ,300 1,530 1 569 1,561 1,640
149
561
141
145
126
?75
71
74
58
71
41
50
166
38
37

1,618
133
63
39

1,642 1,663
154
158
75
77
40
41

5, 965 6 373 6 ,182 7, 222
?59 1 308 1 ,151 1, 515
J

7 ,726 1,879 1 957 1,889 2,001
1 ,500
342
389
380
388
776
195
178
207
196
60?
143
181
Ml
138

2,045
395
197
150

2,047 2,065
394
397
202
201
152
150

7 185
916

5 882
1 490
181

486
396

6 168
1 000
165
19?
12 707
1 950

717
486

78?
597

6 015 6 556

1 770 1,909
218
226
*223
163
184
163
89
93
8?
415 3,098 4,340
267
697
712
363
145
378
140
188
137

2,048
298
220
91

1,941 1 920
219
193
172
161
91
95

4,272
678
344
157

4,270 3,830
652
515
267
327
157
158

2,167 2 ,463 2,422 2,746
233
243
?67
200
139
125
120
16
79
87
78
78

2,624
296
142
79

2,750 2,669
305
273
148
136
81
82

13, 038 16 611 14 137 18, 8?6 16 336 4,578 4 ,195 3,347 4,215
,789
1 ,940
0?3
509
98?
078
689
272
470
709
863 1 394
898
758
118
214
320
469
469
691
516
656
164
166
162
164

4,993
713
337
167

4,522 3,689
603
293
292
152
166
164

o 704 2,590 2,722
343
298
375
208
266
237
70
116
148

2,660 2,676
264
286
182
191
111
83

1,611 1,623
387
388
195
195
150
155

5 078 5 , 411 5 883
911
7?8
841
524
560
603
?83
?90
?6?
1? 507
2 098
778
18?

591
499

5?0
417

751
567
?94

854

624
117

688
346

1 764
248
177
82

564 13 750 11 ,5?? 14, 9 5 ? 16 ,06? 4,209*
1, 147 1 ,817 1 ,357 2, 377 2 ,366
690
705
195 1,?33
790
564
346
369
5??
JS06
407
377
141

7, 077 8 ,005 7 ,745 8, 477
91?
011
971
914
375
199

465
?63

40?
?37

465

9 ,798
943
460

•

Public Utility
Railroad:
Operating revenue
Profits before taxes
Profits after taxes
Dividends
Electric power:
Operating revenue
Profits before taxes
Profits after taxes
Dividends
Telephone:
Operating revenue
Profits before taxes
Profits after taxes
Dividends . . . .

10 191 10 581 10 ,664
1 ?60
438 1 ,416
825
903
693
318
41?
6 ,058 6 549 7 ,136
740 1 ,895
1 ,482
947 1,030
814
725
780
651
.
.

.

.

360
304
?44
942

9 ,059 2,398 2 ,185 2,175 2,302
568
586
2 ,457
592
710
1
302
331
374
262
248
1 ,013
256
247

2,575
247
161
124
2,549
731
393
269

4? 5
282
638

5 ,966 1,439 1,480 1,495 1,552
359
380
352
1 ,430
339
715
176
180
190
169
552
132
137
147
136

1,560
387
195
148

,371 10, 106
908
141
682
927
448
179

7,,588 8
2,049 2
1 114
868

1 7?9 4 136 4 ,575 4 ,90?
787
925 1 ,050
691
45?
384
141
575
355
412
448
318

1
Includes 26 companies in groups not shown separately, as follows:
textile mill products (10); paper and allied products (15); miscellaneous (1).
2
Includes 25 companies in groups not shown separately, as follows:
building materials (12); transportation equipment other than automobile
(6); and miscellaneous (7).
NOTE.—Manufacturing corporations. Sales data are obtained from
the Securities and Exchange Commission; other data from published
company reports.
Railroads. Figures are for Class I line-haul railroads (which account
for 95 per cent of all railroad operations) and are obtained from reports
of the Interstate Commerce Commission.
Electric power. Figures are for Class A and B electric utilities (which
account for about 95 per cent of all electric power operations) and are
obtained from reports of the Federal Power Commission, except that
quarterly figures on operating revenue and profits before taxes are partly




Q

5

496

10 ,551 2 535
1 ,?67
252
874
163
445
110

2,318 2,344
596
600
327
326
270
265

estimated by the Federal Reserve to include affiliated nonelectric operations.
Telephone. Revenues and profits are for telephone operations of the
Bell System Consolidated (including the 20 operating subsidiaries and
the Long Lines and General departments of American Telephone and
Telegraph Company) and for two affiliated telephone companies, which
together represent about 85 per cent of all telephone operations. Dividends are for the 20 operating subsidiaries and the two affiliates. Data
are obtained from the Federal Communications Commission.
All series. Profits before taxes refer to income after all charges and
before Federal income taxes and dividends. For detailed description of
series, see pp. 662-66 of the BULLETIN for June 1949 (manufacturing);
pp. 215-17 of the BULLETIN for March 1942 (public utilities); and p. 908
of the BULLETIN for September 1944 (electric power).

334

BUSINESS FINANCE
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES *

CORPORATE PROFITS, TAXES, AND DIVIDENDS
[Department of Commerce estimates.
of dollars]

In billions

Profits
before
taxes

Income
taxes

Profits
after
taxes

1949...
1950...
1951...
1952...
1953...
1954...
1955...
1956...

26.2
40.0
41.2
35.9
37.0
33.5
42.5
43.0

10.4
17.8
22.5
19.8
20.3
17.4
21.5
22.0

15.8
22.1
18.7
16.1
16.7
16.0
21.0
21.0

7.5
9.2
9.1
9.0
9.3
9.9
11.0
11.9

43.3
42.4
40.8
45.6

22.1
21.6
20.8
23.3

21.2
20.7
19.9
22.3

11.7
12.0
12.1
11.5

9.5
8.7
7.8
10.8

1957—1

43.9
42.0
41.8

22.4
21.4
21.3

21.5
20.5
20.4

12.4
12.5
12.6

All types

8.3
12.9
9.6
7.1
7.4
6.1
9.9
9.2

1956—1
2
3
4

[Securities and Exchange Commission estimates.

9.1
8.0
7.8

Year or
quarter

3

Cash Undisdivi- tributed
dends profits

NOTE.—Quarterly data are at seasonally
annual rates.

Year or
quarter

In millions of dollars]

Bonds and notes

Stocks

New- RetireNet
New RetireNet
issues ments change issues ments change
7,224
9,048
10,679
9,550
11,694
12,474
13,033
14,289

1950
1951
1952
1953
1954
1955
1956 r
1957

New RetireNet
issues ments change

3,501 3,724
2,772 6,277
2,751 7,927
2,429 7,121
5,629 6,065
5,599 6,875
4,968 8,065
3,159 11,129

1956—4 r

3,462

1,105

1957—1
2
3
4

3,666
3,739
3,474
3,409

783
867
802
708

4,806
5,682
7,344
6,651
7,832
7,571
7,934
9,691

2,802
2,105
2,403
1,896
4,033
3,383
3,181
2,236

2,004
3,577
4,940
4,755
3,799
4,188
4,752
7,455

2,418
3,366
3,335
2,898
3,862
4,903
5,099
4,598

698
667
348
533
1,596
2,216
1,787
923

1,720
2,700
2,987
2,366
2,265
2,687
3,313
3,675

2,357 1,821

701

1,120

1,641

404

1,237

2,884
2,873
2,672
2,701

553
626
554
503

1,824 1,289
1,741 1,373
2,000
920
1,890 1,016

230
241
248
205

1,059
1,132
672
811

2,377
2,367
2,554
2,393

r
Revised.
i Reflects cash transactions only. As contrasted with data shown on p. 332, new issues
exclude foreign and include offerings of open-end investment companies, sales of securities
held by affiliated companies or RFC, special offerings to employees, and also new stock
issues and cash proceeds connected with conversions of bonds into stocks. Retirements
include the same types of issues, and also securities retired with internal funds or with
proceeds of issues for that purpose shown on p. 332.

adjusted

CURRENT ASSETS AND LIABILITIES OF CORPORATIONS i
[Securities and Exchanges Commission estimates.

In billions of dollars]

Current assets
End of year
or quarter

Total

Cash

U. S.
Govt.
securities

Notes and accts.
receivable
U. S.
Govt.2

Inventories

Notes and accts.
payable
Other

U. S.
Govt. 2

1956 2
3
4
1957 1
2
3

. . . .
. . . .

133.1
161.5
179.1
186.2
190.6
194.6
214.6

26.5
28.1
30.0
30.8
31.1
33.4
34.0

16.8
19.7
20.7
19.9
21.5
19.2
23.3

1.1
2.7
2.8
2.6
2.4
2.3

55.7
58.8
64.6
65.9
71.2
81.6

45.3
55.1
64.9
65.8
67.2
65.3
70.0

1.4
1.7
2.1
2.4
2.4

102.7
103.4
104.4

214.7
220.4
225.7

32.1
32.6
34.7

17.4
17.5
18.6

2.3
2.4
2.6

84.3
88.1
88.8

106.0
107 0
107.7

224.9
224.5
228.9

31.9
32.5
33.2

18.0
15.7
16.1

2.5
2.5

89.4
90.5
92.9

Other

Other

3.5

60.7
79.8
92.6
96.1
98.9
102.8
115.7

.4
1.3
2.3
2.2
2 4
2.3

3: .5
47.9
53.6
57.0
57.3
61.4
69.9

9.3
16.7
21.3
18.1
18.7
15 5
18.4

14.0
14.9
16.5
18.7
20.7
23.5
25.1

74.8
76.0
77.3

3.8
3.8
3.6

112.1
117.0
121.3

2.5
2.5
2.4

71.4
73.0
74.9

12.3
14.4
16.8

25.8
27.1
27.2

79.1
79.3
80.0

4: .0

2.4

Federal
income
tax
liabilities

Total

Other

72.4
81 6
86.5
90 1
91.8
91 8
98.9

1949
1950
1951
1952
1953
1954
1955

1

Net
working
capital

Current liabilities

4.0
4.0

118.9
117.6
121.2

2.5
2.6

74.1
74.4
75.2

14.4
12.2
13.8

28.0
28.3
29.6

3.1

4.2

2.6

2
Receivables from, and payables to, the U. S. Government exclude
amounts offset against each other on corporations' books.

Excludes banks and insurance companies.

BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT *
[Department of Commerce and Securities and Exchange Commission estimates.
Transportation
Year

1950
1951
1952
1953
1954
1955
1956
1957
19584
r
1

Total

. .

20 6
25.6
26 5
28.3
26 8
28 7
35.1
37.0
32.1

Manufacturing

7.5

10.9
11 6
11.9
11 0
11.4
15.0
16.0
13.2

Mining

.7
.9

1 0
1.0

1 0
1.0
1.2
1.2
1.1

Railroad

Other

1.1
1.5
1.4
1.3
.9
.9
1.2
1.4
.9

1.2
1.5
1.5
1.6
1.5
1.6
1.7
1.8
1.4

Revised.
Corporate and noncorporate business, excluding agriculture.
2 Includes trade, service, finance, and construction.




Public Comutilimuni- Other 2
ties
cations

3.3
3.7
3.9
4.6
4.2
4.3
4.9
6.2
6.4

1.1
1.3
1 5
1.7
1 7
2 0
2.7
3.0
3
4

9 1

5.7
5.9
5 6
6.3
6 5
7.5
8.4
7.4

Quarter

In billions of dollars]

Total

Manufactur- Transing
portaand
tion
mining

1956—4

9 8

4 8

1957—1
2
3 .
4

8 3
9.6

1958—14r
24

8

All
Public
utili- other 3
ties

1 5

2 8

9 4
9 7

3
4
4
4

8
5
3
6

7
.8
8
8

1
1
1
1

2
2
2
2

8.2
8.4

3.7
3.6

.7

1.5
1.7

Includes communications and other.
Anticipated by business.

.6

2
5
7
8

6
7
5
6

2.3
2.5

335

REAL ESTATE CREDIT
MORTGAGE DEBT OUTSTANDING, BY TYPE OF PROPERTY MORTGAGED AND TYPE OF MORTGAGE HOLDER
[In billions of dollars]
All properties

End of year
or quarter

All
holders

]Sonfarm

Other
holders
Financial
insti- Selected Inditutions Federal viduals
and
agenothers
cies

Farm

1- to 4-family houses
All
holders

Multi-family and
commercial properties*

Total

Financial
institutions

Other
holders

Total

Financial
institutions

Other
holders

All
holders

Financial
Other
insti- holders*
tutions

1941
1945

37.6
35.5

20.7
21.0

2.0
.9

14.9
13.7

31.2
30.8

18.4
18.6

11.2
12.2

7.2
6.4

12.9
12.2

8.1
7.4

4.8
4.7

6.4
4.8

1.5
1.3

4.9
3.4

1950
1951
1952
1953
1954
1955
1956
1957*

72.8
82.3
91.4
101.3
113.8
130.0
144.7
156.3

51 7
59.5
66.9
75.1
85.8
99.4
111.2
119.9

1.4
2.0
2.4
2.8
2.8
3.1
3.6
4.7

19.8
20.8
22.1
23.5
25.2
27.5
29.9
31.7

66.7
75.6
84.2
93.6
105.5
120.9
134.8
145.8

45.2
51.7
58.5
66.1
75.7
88.2
99.0
107.6

35.4
41.1
46.8
53.6
62.5
73.8
83.4
90.3

9.8
10.7
11.7
12.5
13.2
14.4
15.6
17.3

21.6
23.9
25.7
27.5
29.8
32.7
35.8
38.2

14.0
15.9
17.2
18.5
20.0
21.9
23.9
25.6

7.6
8.0
8.4
9.0
9.8
10.8
11.9
12.6

6.1
6.7
7.3
7.8
8.3
9.1
9.9
10.5

2.3
2.6
2.8
3.0
3.3
3.6
3.9
4.0

3.7
4.1
4.4
4.8
5.0
5.4
6.0
6.5

1956 June
Sept
Dec

137.6
141.4
144.7

105.5
108.7
111.2

3.2
3.3
3.6

28.8
29.4
29.9

128.0
131.6
134.8

93.7
96.6
99.0

78.8
81.4
83.4

14.9
15.2
15.6

34.3
35.1
35.8

22.9
23.4
23.9

11.3
11.6
11.9

9.6
9.8
9.9

3.8
3.9
3.9

5.8
5.9
6.0

1957—Mar.*
June p
Sept.**
Dec p

147.4
150.3
153.5
156.3

113.0
115.3
117 7
119.9

4.0
4.2
4.5
4.7

30.4
30.9
31.3
31.7

137.3
140.1
143.1
145.8

101.0
103.3
105.6
107.6

84.9
86.8
88.7
90.3

16.2
16.5
16.9
17.3

36.3
36.8
37.5
38.2

24.2
24.6
25.1
25.6

12.0
12.2
12.4
12.6

10.1
10.3
10.4
10.5

3.9
4.0
4.0
4.0

6.2
6.4
6.4
6.5

. .

* Preliminary.
>
1
Derived figures, which include negligible amount of farm loans held
by savings and loan associations.
2 Derived figures, which include debt held by Federal land banks and
Farmers Home Administration.
NOTE.—Figures for first three quarters of each year are Federal Reserve
estimates. Financial institutions represent commercial banks (including
nondeposit trust companies but not trust departments), mutual savings
banks, life insurance companies, and savings and loan associations.

Federal agencies represent HOLC, FNMA, and VA (the bulk of the
amounts through 1948 held by HOLC, since then by FNMA). Other
Federal agencies (amounts small and separate data not readily available
currently) are included with individuals and others.
Sources.—Federal Deposit Insurance Corporation, Federal Home Loan
Bank Board, Institute of Life Insurance, Departments of Agriculture
and Commerce, Federal National Mortgage Association, Veterans Administration, Comptroller of the Currency, and Federal Reserve.

MORTGAGE LOANS HELD BY BANKS i
[In millions of dollars]
Mutual savings bank holdings 3

Commercial bank loldings 2

Total
Total

VAguaranteed

Mar
June p
Sept.
Decp

...

3,42i
3,675
3,912
4,106
4,560
4,803
4,840

2,921
3,012
3,061
3,350
3,711
3,902
3,590

21,990 16,500
22,500 16,860
22,719 17,004
. .

10,431
11,270
12,188
12,925
14,152
15,888
17,004
17,155

4,668
4,760
4,803

22,670
22,760
23,105
23,345

4,770
4,730
4,760
4,840

Conventional

3,292
3,395

13,664
14,732
15,867
16,850
18,573
21,004
22,719
23,345

.

1956—June
Sept
Dec
1957

FHAinsured

4,906
4,772

1941
1945
1950
1951
1952
1953
1954
1955
1956
1957P

Residential

Residential

End of year
or quarter

16,880
16,890
17,070
17,155

Farm

Total
Total

FHAinsured

VAguaranteed

Conventional

Other
nonfarm

Farm

1,048
856

566
521

4,812
4,208

3,884
3,387

2,264
2,458
2,621
2,843
3,263
3,819
4,379
4,835

QfiR

4,929
5,501
5,951
6,695
7,617
8,300
8,725

,004
,058
,082
,159
,297
,336
,355

8,261
9,916
11,379
12,943
15,007
17,457
19,745
21,165

7,054
8,595
9,883
11,334
13,211
15,568
17,703
19,035

2,567
3,168
3,489
3,800
4,150
4,409
4,625

1,726
2,237
3,053
4,262
5,773
7,139
7,820

4,303
4,477
4,792
5,149
5,645
6,155
6,590

900
797
1,164
1,274
1,444
1,556
1,740
1,831
1,984
2,075

3,837
3,890
3,902

7,995
8,210
8,300

4,137
4,282
4,379

,353 18,610 16,644
1,358 19,225 17,218
1,336 19,745 17,703

4,274
4,350
4,409

6,506
6,840
7,139

5,864
6,028
6,155

1,984

68
63
59

3,810
3,720
3,660
3,590

8,300
8,440
8,650
8,725

4,440
4,500
4,660
4,835

1,350
1,370
1,375
I 355

4,455
4,500
4,550
4,625

7,330
7,520
7 677
7,820

6,250
6,364
6 470
6,590

2,010
2,033
2,058
2,075

60
58
57
55

* Preliminary.
1
Represents all banks in the United States and possessions.
2 Includes loans held by nondeposit trust companies but excludes
holdings of trust departments of commercial banks. March and September figures are Federal Reserve estimates based on data from Member
Bank Call Report and from weekly reporting member banks.
3
Figures for 1941 and 1945, except for the grand total, are estimates




Other
nonfarm

20,105
20,475
20,812
21,165

18,035
18,384
18,697
19,035

1,898
Q44

28
24
44
47
53
53
56
58
59
55

based on Federal Reserve preliminary tabulation of a revised series of
banking statistics. March and September figures are Federal Reserve
estimates based in part on data from National Association of Mutual
Savings Banks.
Sources.—All-bank series prepared by Federal Deposit Insurance
Corporation from data supplied by Federal and State bank supervisory
agencies, Comptroller of the Currency, and Federal Reserve.

336

REAL ESTATE CREDIT
MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES
[In millions of dollars]
Loans acquired

Loans outstanding (end of period)

Nonfarm

Nonfarm

Year or month
Total

FHAinsured

Total

1941
1945

4,894
5,134
3,978
4,345
5,344
6,623
6,715
5,231

4,532
4,723
3,606
3,925
4,931
6,108
6,201
4,823

553

402
429
454
426
367
432
435
408
435

Farm

1957_Jan
Feb
Mar

Total

1,486
1,058
864
817

2,108
2 371
2,313
2 653
2,881
3,298
3 707
3,304

362
411
372
420

971
842

938
1,294
429
455
1,378
1,839
1,652

686

833

512

51

141

320

41

356
376
419
391
338
404
412
383
404

43
43
49
44
48
53
50
82
67

98
73
93
94
53
64
58
43
51

215
260
277
253
237
287
304
258
286

46
53
35
35
29
28
23
25
31
27

672

413

515
514
408

.

2,026
3,131
3,347
3,560
4,643
6,074
7,304
7,750

8,176
9 399
10,518
11 864
13,169
14,703
16 577
18,124

1,327
1 527
1,705
1 886
2,048
2,273
2 481
2,590

6,658
6,671
6,666
6,671
6,673
6,670
6,671
6,677
6,690
6,706
6.720
6,766

7,420
7,493
7,556
7,603
7,656
7,677
7,702
7,725
7,736
7,753
7,758
7,750

16,732
16,837
16,957
17,060
17,169
17,273
17,421
17,576
17,696
17,815
17,918
18,124

2,469
2,478
2,493
2,506
2,524
2,539
2,562
2,569
2,575
2,585
2,590
2,590

6,818

7,748

18,250

2,594

16,102
19,314
21,251
23,322
25,976
29,445
32,989
35,230

14,775
17,787
19,546
21,436
23,928
27,172
30,508
32,640

4,573
5,257
5,681
6,012
6,116
6,395
6,627
6,766

30,810
31,001
31,179
31,334
31,498
31,620
31,794
31,978
32,122
32,274
32,396
32,640
32,816

335

60

38

237

493

96

27

370

35

33,279
33,479
33,672
33,840
34,022
34,159
34,356
34,547
34,697
34,859
34,986
35,230

482

122

41

319

43

35,410

Farm
Other

913

1,394

525

Dec

VAguaranteed

4 714
4,466

5 529
5,860

362

May
June
July
Aug
SeDt
Oct
Nov

FHAinsured

6 442
6,636

528

Apr

1958—J£n

Total

Other

976

1950
1951
1952
1953
1954
1955
1956
1957

Vaguaranteed

815

776

NOTE.—For loans acquired, the monthly figures may not add to annual
totals, and for loans outstanding, the end-of-December figures may differ
from end-of-year figures, because monthly figures represent book value of
ledger assets whereas year-end figures represent annual statement asset

values, and because data for year-end adjustments are more complete.
Source.—Institute of Life Insurance; end-of-year figures are from
Life Insurance Fact Book, and end-of-month figures from the Tally of
Life Insurance Statistics and Life Insurance News Data.

MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS

NONFARM MORTGAGE RECORDING OF $20,000 OR LESS

[In millions of dollars]

[In millions of dollars]

Loans outstanding (end of period)

Loans made
Year or
month

Total i

New
construction

1941
1945.

1 379
1,913

437

1950
1951.
1952
1953.
1954
1955
1956.
1957

5,237
5 250
6,617
7,767
8 969
11,432
10 545
10,402

1,767
1 657
2,105
2 475
3 076
4 041
3 771
3 562

Jan

714

Feb

709
842

245
243

181

Home
purchase

Total 2

1,358
2,357
2,955
3,488
3,846
5,241
A,121
4,708

VAguaranteed

581

848
866

904
,048
,172
,405
,486
,643

Year or
month

Conventional 2

4 578
5,376
13,657
15,564
18,396
21,962
26,194
31,461
35,729
40,119

FHAinsured

2,973
3,133
3,394
3,979
4,721
5,891
6,643
7,013

9,836
11,565
14,098
16,935
20,301
24,165
27,600
31,463

Mar..
Apr
May.
June...
July
Aug

Sept
Oct
Nov
Dec..

899

317

968
925

360
319

969

318

1,001
891
980

331
292
341

768
734

250

723

245

318 36,195
366 36,559
391 36,963
412 37,421
415 37,886
462 38,280
470 38,743
423 39,106
443 39,532
358 39,835
324 40,119

,488
,493
,499
,508
,520
,530
,545
,560
1,573
,591

6,659
6,682
6,724
6,774
6,833
6,889
6,904
6,920
6,933
6,946
6,963
7,013

27,782
28,020
28,336
28,681
29,068
29,467
29,831
30,263
30,600
30,995
31,275
31,463

597

,643

1958
Jan

308 40,369

1,651

Season- Without
seasonal
ally
adjustadment 2
justed i

Savings &
loan
assns.

Insurance
companies

Commercial
banks

Mutual
savings
banks

4,732
5,650

1,490
2,017

404
250

1,165
1,097

218
217

16,179
16 405
18,018
19,747
22,974
28,484
27,088
24 244

5,060
5 295
6,452
7,365
8,312
10,452
9,532
9 217

1.618
I 615
,420
,480
,768
,932
,799
472

3,365
3 370
3,600
3,680
4,239
5,617
5,458
4 264

1.064
I 013
1,137
327
1,501
,858
1,824
429

1,942
1,749
1,937
2,044
2 144
2,028
2,211
2,208
2,026
2,226
1,877
1,851

659
644

134
105

353
308

117
96

744

115

334

99

798
840

116
125

357
374

110
121

119

363

852
883

130
132

390
378

796

124

354

855
686
666

132
117
125

395
333
325

131
117
113

1,782

628

111

322

98

1941
1945
1950
1951
1952
1953 .
1954
1955
1956
1957

1957
326 35,929

By type of lender
(without seasonal adjustment)

Total

.

1957
Jan
Feb

Mar
Apr
May

June
July
Aug
Sept

....

Oct

Nov
Dec

2,056
2 050
2,011
2,042
2 031
2,046
2,047
2 056
2,032
1,983
1 946
1,924

795

126

142
137
121

1958

7,048 31,670
Jan

1

Includes loans for other purposes (for repair, additions and alterations,
refinancing, etc.) not shown separately.
2
Beginning 1958 includes shares pledged against mortgage loans.
Source.—Federal Home Loan Bank Board.




1
Three-month moving average, seasonally adjusted by Federal Reserve.
2
Includes amounts for other lenders, not shown separately.
Source.—Federal Home Loan Bank Board.

337

REAL ESTATE CREDIT

MORTGAGE DEBT OUTSTANDING ON
NONFARM 1- TO 4-FAMILY PROPERTIES

GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE
[In millions of dollars]

[In billions of dollars]

F H A -insured loans

Home
mortgages
Year or month
Total

New
properties

Existing
properties

VA-guaranteed loans

type
mortgages 1

Property
improvement2
loans

Proj-

Home
mortgages
Total 3
New
properties

Governmentunderwritten

End of
year or
quarter

Existing
properties

Total

1945

665

257

217

20

171

192

1950
1951
1952
1953
1954
1955
1956
1957

4,343
3,220
3,113
3,882
3,066
3,807
3,461
3,715

1,637
1 216
969
1,259
1,035
1,269
1,133
880

856
713
974
1,030
907
1,816
1,505
1,371

1,157
582
322
259
232
76
130
595

694
708
848
1,334
891
646
692
869

3,072
3,614
2,719
3,064
4,257
7,156
5,868
3,761

1,865
2,667
1,823
2,044
2,686
4,582
3,910
2,890

1,202
942
890
1,014
1,566
2,564
1,948
863

300
266
317
264
292
247
333
340
273
422
329
332

87
74
75
68
60
60
67
63
57
87
86
97

107
85
86
90
94
104
124
122
116
145
145
152

29
50
96
41
80
18
76
67
14
79
33
12

77
56
60
66
58
65
65
88
85
111
65
71

555
431
380
350
286
276
268
251
295
280
213
176

393
316
285
271
218
213
206
193
228
229
182
155

162
113
94
78
68
62
62
58
66
50
30
20

418

120

186

56

55

160

142

18

1957

Jan
Feb
Mar

Apr
M!ay
June
July

.

Sept
Oct

Nov
Dec
1958—Jan

.

1 Monthly figures do not reflect mortgage amendments included in annual totals.
These loans are not ordinarily secured by mortgages.
Includes a small amount of alteration and repair loans, not shown separately; only such
loans in amounts of more than $1,000 need be secured.
NOTE.—FHA-insured loans represent gross amount of insurance written; VA-guaranteed
loans, gross amount of loans closed. Figures do not take account of principal repayments
on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type
are derived from data on number and average amount of loans closed.
Sources.—Federal Housing Administration and Veterans Administration.
2
3

Conventional

Total

1945

FHA- VAmguarsured anteed

18 6

4 3

4 1

.2

14.3

1950
1951
1952
1953
1954 . . .
1955
1956
1957*>

45 2
51 7
58 5
66.1
75 7
88 2
99 o
107 6

18 9
22 9
25 4
28.1
32 1
38 9
43 9
47 2

8 6
9 7
10 8
12.0
12 8
14 3
15 5
16 5

10.3
13 2
14 6
16.1
19 3
24 6
28 4
30 7

26.3
28 8
33 1
38.0
43 6
49 3
55 1
60.4

1956—June
Sept
Dec.

93.7
96.6
99 0

41.3
42.5
43 9

15.0
15.2
15 5

26.3
27.3
28 4

52.4
54.1
55 1

101.0
103.3
105.6
107.6

45.1
45.9
46.5
47.2

15.7
15.9
16.1
16.5

29.4
30.0
30.4
30.7

55.9
57.4
59.1
60.4

1957—Mar. P . . . .
June**. . . .
Sept.P
Dec?

P Preliminary.
NOTE.—For total debt outstanding, figures for first
three quarters of year are Federal Reserve estimates.
For conventional, figures are derived.
Sources.—Federal Home Loan Bank Board, Federal
Housing Administration, Veterans Administration, and
Federal Reserve.

FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY i

FEDERAL HOME LOAN BANK LENDING

[In millions of dollars]

[In millions of dollars]

Mortgage holdings
End of year
or month
Total

Mortgage
transactions
(during
period)
Sales

Commitments
undisbursed

677
538
542

469
111
56
221

614
411

525
62

485
239
323
638

FHAinsured

VAguaranteed

169
204
320
621

1,044

Purchases

Year or month

Advances

Repayments

Advances outstanding
(end of period)
Short-

Longterm 2

1945
1,347
1,850
2,242
2,462
2,434
2,615
. . . 3,047
3,974

1.237

1,177
1,646
1,922
1,841
1,632
1,714
2 069
2,737

,009
1,026
1,053
,074
1,087
1,100
1,112
1,132
1,152
1,170
1,197
.237

2,173
2,269
2,356
2 417
2,464
2,505
2,541
2,586
2,631
2,679
2,712
2,737

147
129

411
436

127
95
75

483
493
518

Dec

3,182
3,295
3,409
3 491
3,551
3,605
3,654
3,718
3 783
3,849
3,909
3,974

Jan

4,038

1,283

2,755

1950
1951
1952
1953
1954
1955
1956
1957
1957

Jan
Feb
Mar
Apr

May
June
July
Aug
Sect
Oct
Nov

1958

802
901
978

609

1,119

69
83

5
2

1
1

476
76
360
764

525
626

78
82
79

680
712
726

75
80

717
764

77

786

1
Operations beginning Nov. 1, 1954, are on the basis of FNMA's new
charter, under which it maintains three separate programs: secondary
market, special assistance, and management and liquidation.
Source.—Federal National Mortgage Association.




278

213

195

176

19

1950
1951
1952
1953
1954
1955
1956
1957

675
423
586
728
734
1,251
745
1,116

292
433
528
640
818
702
934
1,079

816
806
864
952
867
1,417
1,228
1,265

547
508
565
634
612
991
798
731

269
298
299
317
255
426
430
534

1957—Feb..
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

30
68
73
73
135
131
83
96
83
74
196

91
83
62
52
48
171
50
49
70
62
74

976
961
971
993
1,079
1,040
1,072
1,119
1,131
1,143
1,265

601
563
544
559
614
638
663
688
686
689
731

375
398
427
434
465
402
409
431
445
454
534

1958—Jan..
Feb.,

58
41

417
158

906
790

527
451

379
339

1
Secured or unsecured loans maturing in one year or less.
2
Secured loans, amortized quarterly, having maturities of more than
one year but not more than ten years.
Source.—Federal Home Loan Bank Board.

338

CONSUMER CREDIT
CONSUMER CREDIT, BY MAJOR PARTS
[Estimated amounts of short- and intermediate-term credit outstanding, in millions of dollars]
Instalment credit

End of year or month

Total
Total

Automobile
paper 1

Other
consumer
goods
paper i

Noninstalment credit

Repair
and modernization
loans 2

Personal
loans

Total

Singlepayment
loans

Charge
accounts

Service
credit

1939
1941
1945

7,222
9,172
5,665

4,503
6,085
2,462

1,497
2,458
455

1,620
1,929
816

298

376
182

1,088
1,322
1,009

2,719
3,087
3,203

845
746

1,414
1,645
1,612

518

1950
1951
1952
1953
1954
1955
1956
1957

21,395
22,617
27,401
31,243
32,292
38,670
42,097
r
44,776

14,703
15,294
19,403
23,005
23,568
28,958
31,827
r
34,105

6,074
5,972
7,733
9,835
9,809
13,472
14,459
15,496

4 799
4,880
6 174
6,779
6,751
7,634
8,510
r
8,687

1,016
1,085
J.185
,610
,616
,689
,895
,984

2,814
3,357
4,111
4,781
5,392
6,163
6,963
7,938

6,692
7,323
7,998
8,238
8,724
9,712
10,270
10,671

1,821
1,934
2,120
2,187
2,408
3,002
3,253
3,502

3,291
3,605
4,011
4,124
4,308
4,579
4,735
4,760

1 580
1,784
1,867
1,927
2,008
2,131
2,282
2,409

41,138
40,738
40,735
41,247
41,937
42,491
42,592
43,133
43,270
43,274
43,530
r
44,776

31,568
31,488
31,524
31,786
32,158
32,608
32,968
33,303
33,415
33,504
33,596
r
34,105

14,410
14,432
14,528
14,691
14,883
15,127
15,329
15,490
15,556
15,579
15,542
15,496

8,305
8,160
8,043
8,017
8,081
8,165
8,189
8,229
8,228
8,236
8,300
r
8,687

872
,859
,856
,862
,886
905
1,921
1,954
1,969
1,988
1,996
L 984

6,981
7,037
7,097
7,216
7,308
7,411
7,529
7,630
7,662
7,701
7,758
7,938

9,570
9,250
9,211
9,461
9,779
9,883
9,624
9,830
9,855
9,770
9,934
10,671

3,199
3,273
3,370
3,374
3,582
3,530
3,406
3,458
3,493
3,405
3,458
3,502

4,111
3,690
3,534
3,735
3,834
3,948
3,810
3,957
3,942
3,991
4,135
4,760

2,260
2,287
2,307
2,352
2,363
2,405
2,408
2,415
2,420
2,374
2,341
2,409

43,966

33,737

15,326

8,499

1,963

7,949

10,229

3,514

4,264

2,451

.
.

1957 Jan
Feb
Mar
Apr
May

June
July

Aus.
Sept
Oct
Nov
Dec

1958—Jan
r
1

787

597
845

NOTE.—Monthly figures for the period December 1939 through 1947
and a general description of the series are shown on pp. 336-54 of the,
BULLETIN for April 1953; monthly figures for 1948-56, in the BULLETINS
for October 1956, pp. 1035-42, and December 1957, pp. 1420-22.
A detailed description of the methods used to derive the estimates may
be obtained from Division of Research and Statistics.

Revised.
Represents all consumer instalment credit extended for the purpose
of purchasing automobiles and other consumer goods, whether held by
retail outlets or financial institutions. Includes credit on purchases by
individuals of automobiles or other consumer goods that may be used
in 2
part for business.
Represents repair and modernization loans held by financial institutions; holdings of retail outlets are included in other consumer goods
paper.

INSTALMENT CREDIT, BY HOLDER
[Estimated amounts outstanding, in millions of dollars]
Financial institutions}
Total
instalment
credit

Total

Commercial
banks

Sales
finance
companies

1939
1941
1945

4 503
6,085
2 462

3 065
4,480
1,776

1,079
1,726

1,197
1,797

745

300

1950
1951
1952
1953
1954
1955
1956
1957

14,703
15,294
19,403
23,005
23,568
28,958
31,827
r
34,105

11,805
12,124
15,581
18,963
19,450
24,450
27,084
29,375

5,798
5,771
7,524
8,998
8,796
10,601
11,707
12,714

3,711
3,654
4,711
5,927
6,144
8,443
9,100
9,573

1957—Jan
Feb
Mar
Apr
May
June
Julv
Aug
Sept
Oct
Nov

26,974
27,008
27,148
27,544
27,864
28,263
28,726
29,014
29,128
29,241
29,239
29,375

11,638
11,662
11,736
11,981
12,143
12,323
12,508
12,607

Dec

31,568
31,488
31,524
31,786
32,158
32,608
32 968
33,303
33,415
33,504
33,596
r
34,105

1958—Jan

33,737

29,125

End of year
or month

r
1

.
. .

12,656
12,749
12,717
12,714
12,611

Credit
unions

Retail outlets
Consumer
finance
companies 1

Furniture
stores

Household
appliance
stores

686

354
320
131

439
496
240

183
206
17

123
188
28

339
395
270

746
924

1,107
1,064
1,242
1,511
1,408
r
l,393

827
810
943

267
243
301
377
377
365
377
374

287
290
389
527
463
487
502
529

L082
,070
,052
1,101
,269
1,288

499
499
501

Total

657
759
629

132
198
102

1,438
1,605

420
509
643
777
911

1,124
1,342
1,678
2,014
2,472

1,286
1,555
1,866
2,137
2,257
2,656
3,056
3,332

,072
,207
1,284

2,898
3,170
3,822
4,042
4,118
4,508
4,743
r
4,730

9,077
9,035
9,048
9,104
9,176
9,300
9,476
9,565
9,598
9,585
9,564
9,573

2,011
2,039
2,076
2,127
2,167
2,227
2,284
2,344
2,377
2,415
2,439
2,472

3,048
3,058
3,063
3,105
3,123
3,155
3,209
3,234
3,231
3,229
3,248
3,332

1,200
1,214
1,225
1,227
1,255
1,258
1,249
1,264
1,266
1,263
1,271
I 284

4,594
4,480
4,376
4,242
4,294
4,345
4,242
4,289
4,287
4,263
4,357
r
4,730

1,387
1,351
1,304
1,176
1,229
1,249
1,144
1,161
1,167
1,134
1,199
1,393

1,139
1,115
1,090
1,075
1,077
1,077
L 072
1,083
1,077
1,080
1,092
1 146

364
362
356

9,464

2,446

3,320

1,284

4,612

1,381

1,108

590
635
837

Revised.
Consumer finance companies included with "other" financial institutions until September 1950.




Department
stores 2

Other 1

2

1,004
984

1,044
1,187
1,146

Automobile
dealers 3

Other

771
903

359
361
360

518
525
530

363
365
365
374

533
533
531
529

,205
I 153
1,125
1,132
I 123
,142
L 140
I 155
1,147
1,151
1,170
I 288

367

522

1,234

354
355

505
510

Includes mail-order houses.
3 Represents automobile paper only; other instalment credit held by
automobile dealers is included with "other" retail outlets.

339

CONSUMER CREDIT
INSTALMENT CREDIT HELD BY COMMERCIAL BANKS,
BY TYPE OF CREDIT

INSTALMENT CREDIT HELD BY SALES FINANCE
COMPANIES, BY TYPE OF CREDIT

[Estimated amounts outstanding, in millions of dollars]

[Estimated amounts outstanding, in millions of dollars]

End of year
or month

1939
1941
1945.. .

Total
instalment
credit

Automobile
paper

Other
con-

Purchased Direct

goods
paper

178
338

166
309

Repair
and
modernization
loans

Total
instalment
credit

Automobile
paper

Other
consumer
goods
paper

Repair
and
modernization
loans

1939
1941
1945

1,197
1,797
300

878
1,363
164

115
167
24

148
201
58

56
66
54

1950
1951
1952
1953
1954
1955
1956
1957

3,711
3,654
4,711
5,927
6,144
8,443
9,100
9,573

2,956
2,863
3,630
4,688
4,870
6,919
7,283
7,470

532
452
680
816
841
1,034
1,227
1,413

61
63
60
46
31
25
23
20

162
276
341
377
402
465
567
670

9,077
9,035
9,048
9,104
9,176
9,300
9,476
9,565
9,598
9,585
9,564
9,573

7,222
7,190
7,190
7,212
7,272
7,376
7,466
7,532
7,557
7,537
7,510
7,470

1,261
1,247
1,255
1,279
1,285
1,296
1,369
1,384
1,389
1,390
1,388
1,413

23
23
22
22
22
22
22
22
22
23
21
20

571
575
581
591
597
606
619
627
630
635
645
670

9,464

7,363

1,404

20

677

Per-

End of year
or month

loans

1,079
1,726
745

237
447

66

143

114

110

312

1950
1951
1952
1953
1954..
1955
1956
1957

5 798
5,771
7 524
8,998
8,796
10,601
11,707
12,714

1,177
1,135
1 633
2,215
2,269
3,243
3,651
4,054

1,294
1,311
1,629
1,867
1,668
2,062
2,075
2,335

1,456
1,315
1,751
2,078
1,880
2,042
2,394
2,435

834
,137
,317
,303
,338
,469
,527

1,037
1,122
1,374
1,521
1,676
1,916
2,118
2,363

1957—Jan
Feb

11 638
11,662
11 736
11,981
12,143
12,323
12,508
12,607
12,656
12,749
12,717
12,714

3,653
3,680
3,723
3,789
3,851
3,921
3,976
4 026
4,050
4,082
4,067
4,054

2,092
2,109
2,149
2,200
2,246
2,282
2,310
2,330
2,334
2,334
2,333
2,335

2,313
2,295
2,280
2,363
2,368
2,395
2,456
2,434
2,437
2,471
2,448
2,435

,452
,438
,432
,436
,450
,466
,480
,503
,514
,531
.537
1,527

2,128
2,140
2,152
2,193
2,228
2,259
2,286
2,314
2,321
2,331
2,332
2,363

12,611

4,016

2,330

2,378

1,508

2,379

Mar

Apr
May
June
July
Aue
Sept
Oct

Nov
Dec
1958—Jan

135
161

888

363
471

1957—Jan..

Feb..
Mar.
Apr..
May,
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.

1958—Jan..

INSTALMENT CREDIT HELD BY FINANCIAL INSTITUTIONS
OTHER THAN COMMERCIAL BANKS AND SALES
FINANCE COMPANIES, BY TYPE OF CREDIT

NONTNSTALMENT CREDIT, BY HOLDER
[Estimated amounts outstanding, in millions of dollars]

[Estimated amounts outstanding, in millions of dollars]

End of year
or month

1939
1941.
1945

Total
instalment
credit
789

Automobile
paper

Other
consumer
goods
paper

957
731

81

24

122
54

36
20

1950
1951.
1952
1953
1954
1955
1956
1957

2,296
2,699
3,346
4,038
4,510
5,406
6,277
7,088

360

200

1957__Jan
Feb.
Mar
Apr
May
June
July
Aug.
Sept
Oct
Nov
Dec

6,259
6,311
6,364
6,459
6,545
6,640
6,742
6,842
6,874
6,907
6,958
7,088

1958—Jan

7,050

373
452
538

233
310
370

539
761

375
537

Repair

and
modernization

669
785
643

121
134
188
247
282
326
403
437

1,615
1,959

2,396
2,883
3,314
3,782
4,278
4,905
4,282
4,322
4,364
4,432
4,483
4,546
4,624
4,689
4,711
4,735
4,781
4,905
4,893

948

648

638

944
954
965

636
637
633

1,004
1,030
1,052
1,072
1,082
[,093
1,101
1,108

6*38
644
647
647
652
648
645
638
638

397
398
402
404
414
417
419
429
433
434
438
437

1,095

627

435

NOTE.—Institutions represented are consumer finance companies, credit
unions, industrial loan companies, mutual savings banks, savings and
loan associations, and other lending institutions holding consumer
instalment loans.




End of year
or month

loans

1,108

985

Personal
loans

15
14
14

Personal
loans

Total
noninstalment
credit

Financial
institutions
(single-payment loans)
Commercial
banks

Retail
outlets
(charge
accounts)

DeOther partment
stores i

Service
credit
Other

1939
1941...
1945

2,719
3,087
3,203

625
693
674

162
152
72

236
275
290

1,178
1,370
1,322

518
597
845

1950
1951
1952
1953
1954
1955..
1956
1957

6,692
7,323
7,998
8,238
8,724
9,712
10,270
10,671

1,576
1,684
1,844
1,899
2,096
2,635
2,843
3,095

245
250
276
288
312
367
410
407

650
698
728
772
793
862
893
876

2,641
2,907
3,283
3,352
3,515
3,717
3,842
3,884

1,580
1,784
1,867
1,927
2,008
2,131
2,282
2,409

1957_jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

9,570
9,250
9,211
9,461
9,779
9,883
9,624
9,830
9,855
9,770
9,934
10,671

2,829
2,851
2,874
2,920
2,996
3,029
2,996
3,002
3,023
3,022
3,028
3,095

370
422
496
454
586
501
410
456
470
383
430
407

723
611
566
592
593
579
533
535
588
612
658
876

3,388
3,079
2,968
3,143
3,241
3,369
3,277
3,422
3,354
3,379
3,477
3,884

2,260
2,287
2,307
2,352
2,363
2,405
2,408
2,415
2,420
2,374
2,341
2,4Q9

1958—Jan

10,229

3,054

460

725

3,539

2,451

1

.

.

Includes mail-order houses.

340

CONSUMER CREDIT
INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT
[Estimates of short- and intermediate-term credit, in millions of dollars. The terms "adjusted" and "unadjusted" refer to adjustment
of monthly figures for seasonal variation and differences in trading days]
Total

Automobile paper

Other consumer
goods paper

Repair and
modernization loans

Personal loans

Year or month
Adjusted

Unadjusted

Adjusted

Unadjusted

Adjusted

Unadjusted

Adjusted

Unadjusted

Adjusted

Unadjusted

Extensions
1950
1951
1952
1953
1954
1955
1956
1957

21,558
23 576
29,514
31,558
31,051
39,039
40,063
r
42,411

. .

8,530
8 956
11,764
12,981
11,807
16,745
15,563
16,681

3,473
3,509
3,426
3,470
3,535
3,547
3,599
3,591
3,546
3 541
3,559
'3,615

Feb

Mar
Apr
May

June
July. .
Aug
Sept
Oct....
Nov
Dec.
1958—j an

3,090
2,976
3 347
3,594
3,748
3,674
3,837
3,704
3,388
3,545
3,439
'4,069

1.420
1,407
1,374
1,371
,363
1,356
1,381
1,355
[,392
1,435
[,404

3,504

1957—Jan

3,108

7,150
7 485
9,186
9,227
9,117
10,634
11,590
r
l 1,599

421

1,258
1,215
1,380
1,468
1,513
1,494
1,563
1 467
1,364
1 404
1,250
1,305

932
963
931
937
995
1,007
999
1,027
973
912
964
'959

1,346

1,190

940

802
763
846
901
1,016
998
995
1,022
927
976
1,020
'1,333
799

5,043
6,294
7,347
8,006
8,866
10,272
11,342
12 613

835
841
1,217
1,344
1,261
1,388
1,568
1 518
123
129
123
123
134
128
130
137
127
126
120
118

96
101
111
123
147
133
143
150
138
141
123
112

998
1,010
998
1,039
[,043
,056
1,089
1,072
,054
[ 068
1,071
115

1,024
1,046
1,319

131

102

1,087

1,017

934

897
1 010
1,102
1,072
1,049
1,136
1 065
959

Repayments
1950
1951
1952
1953
1954
1955
1956
1957

18 445
22,985
25,405
27,956
30,488
33 649
37,194
40,133

...
..

7 011
9,058
10,003
10,879
11,833
13 082
14,576
15,644

6 057
7 404
7,892
8 622
9,145
9 751
10,714
11,422

4 660
5,751
6,593
7 336
8,255
9 501
10,542
11,638

717
772
917
1,119
1,255
1 315
1,362
1,429

1957 Jan.. .
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

3,292
3,257
3,255
3,284
3,313
3,339
3,382
3,343
3,418
3,358
3,394
3,498

3,349
3,056
3,311
3,332
3,376
3,224
3,477
3,369
3,276
3,456
3,347
3,560

1,312
1,284
1,272
1,294
1,305
1,289
1,317
1,276
1,318
1,317
1,292
1,368

1.307
,193
1,284
,305
1,321
[,250
,361
1,306
1,298
1,381
1,287
[.351

942
933
935
908
919
951
964
976
990
945
981
978

1 007
908
963
927
952
914
971
982
928
968
956
946

117
120
113
117
121
120
125
117
124
118
113
124

119
114
114
117
123
114
127
117
123
122
115
124

921
920
935
965
968
979
976
974
986
978
1,008
1,028

1,139

1958—Jan

3,421

3,476

1,368

1,360

925

987

120

123

1,008

1,006

916

841
950
983
980
946
1,018
964
927
985
989

Change in outstanding credit1
1950
1951
1952
1953
1954
1955
1956
1957

.

1957—Jan
Feb.
Mar
Apr
May
June
July
Aug.
Sept
Oct..
Nov
Dec.
1958 Jan

.

.

.

+ 3,113
+ 591
+4,109
+ 3,602
+563
+5,390
+2,869
'+2,278

.

+ 1,519
-102
+ 1,761
+2,102
— 26
+ 3,663
+987
+ 1,037

+ 118
+69
+ 300
+225

-259
-80
+36
+262
+372
+450
+360
+335
+ 112
+89
+92
'+509

+ 108
+ 123
+ 102
+77
+58
+67
+64
+79
+74
+ 118
+ 112
+55

-49
+22
+96
+ 163
+ 192
+244
+202
+ 161
+66
+23
-37
-46

-10
+30
-4
+29
+76
+56
+35
+51
-17
-33
-17
r
-19

-205
-145
-117
-26
+64
+84
+24
+40
-1
+8
+64
'+387

+6
+9
+ 10
+6
+ 13
+8
+5
+20
+3
+8
+7
-6

+83

-368

-22

-170

+ 15

-188

+ 11

Revised.
* Obtained by subtracting instalment credit repaid from instalment
credit extended.
NOTE.—Monthly figures for 1940-54 are shown on pp. 1043-54 of
the BULLETIN for October 1956; for

1955-56, in the BULLETIN for

December 1957, pp. 1420-22.
A discussion of the composition and characteristics of the data and
a description of the methods used to derive the estimates are shown

+ 383
+543
+754
+670
+611
+771
+800
+975

+6
+73
+206
+89

+ 181
+252
+ 171
+ 186
+222
+208
+217
+248
+ 128
+ 183
+ 165
'+117

r




+ 1,093
+ 81
+1,294
+605
— 28
+883
+ 876
'+177

-23
-13
-3

-12

+77
+90
+63
+74
+75
+77
+ 113
+98
+68
+90
+63
+87

+ 18
+56
+60
+ 119
+92
+ 103
+ 118
+ 101
+ 32
+39
+57
+ 180

-21

+79

+ 11

+6

+24
+ 19
+ 16
+ 33
+ 15
+ 19

+8

in the BULLETIN for January 1954, pp. 9-17. Estimates of instalment
credit extended and repaid are based on information from accounting
records of retail outlets andfinancialinstitutions and often include charges
incurred under the instalment contract. Renewals and refinancing of
loans, repurchases and resales of instalment paper, and certain other
transactions may increase the amount of both credit extended and credit
repaid without adding to the amount of credit outstanding.

341

CONSUMER CREDIT
INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER
[Estimates of short- and intermediate-term credit, in millions of dollars. The terms "adjusted" and "unadjusted" refer to adjustment
of monthly figures for seasonal variation and differences in trading days]
Other financial
institutions

Sales finance
companies

Commercial banks

Total

Retail outlets

Year or month
Adjusted

Unadjusted

Adjusted

Unadjusted

Adjusted

Unadjusted

Adjusted

Unadjusted

Adjusted

Unadjusted

Extensions
21,558
23,576
29,514
31,558
31,051
39,039
40,063
'42,411

1950
1951
1952
1953
1954
1955
1956
1957
1957

5,098
5,467
6,982
7,560
7,260
10,200
9,600
10,200

3,826
4,788
5,659
6,375
6,983
8,449
9,474
10,453

Feb

Mar
Apr. i
M^ay
June
July 1
Aug
Sept
Oct i
Nov
Dec

.

1

3,473
3,509
3,426
3,470
3,535
3,547
3,599
3,591
3,546
3,541
3,559
'3,615

3,090
2,976
3,347
3,594
3,748
3,674
3,837
3,704
3,388
3,545
3,439
'4,069

1.276
1,262
1,208
1,236
1,245
1,268
1,291
1,284
1,289
1,325
1.252
1,252

1,204
1.108
,212
,348
,362
,333
,382
,320
,239
,302
.150
1,228

903
831
852
845
832

785
691
821
855
886

830
890

817
841
836
865
877

904
1,022

819
834
856

903
829
860

835
873

3,504

Jan.i

1958—Jan

8,135
8,358
11,123
12,099
11,267
14,109
14,387
15,188

3,108

1,247

1,174

828

4,499
4,963
5,750
5,524
5,541
6,281
6,602
'6,570

740
749
843
901
904

477
575
530
524
581

361
428
471
490
596

870
905

871
946

579
513

566
487

907
869
871

906
797
850

581
554
489

575
523
533

779
865

893
902

877
1,069

579
'588

633
'907

720

875

793

554

421

Repayments

1957 Jan i
Feb
Mar

Apr i
May
June
July 1
Aus
Sept
Oct i
Nov
Dec
1958

6,776
8,385
9,370
10,625
11,469
12,304
13,320
14,252

18,445
22,985
25,405
27,956
30,488
33,649
37,194
40,133

1950
1951
1952
1953
1954
1955
1956
1957

Jan i

.

4,331
5,524
5,925
6,344
7,043
7,901
8,943
9,727

3,349
3,056
3,311
3,332
3,376
3,224
3,477
3,369
3,276
3,456
3,347
3,560

1.177
1,162
1,141
1,155
1,168
1,196
1,189
1,196
1,228
1,200
1.208
1^232

1.198
1,084
1,138
1,187
1,200
[,153
1,242
1,221
1,190
1,226
1,182
1.231

821
793
791
801

808
733
808
799

767
757
778
793

758
697
790
806

527
545
545
535

585
542
575
540

817
805

814
780

805
800

818
776

523
538

544
515

831
797
808
820
795
848

846
814
796
873
800
856

817
819
815
810
838
843

844
806
765
817
826
939

545
531
567
528
553
575

545
528
525
540
539
534

3,421

3,476

1,216

1,237

844

829

837

831

524

579

+ 1,359
-27
+ 1,753
+ 1,474
-202
+ 1,805
+ 1,106
c
+1,007

4-3,113
4-591
+4,109
+ 3,602
4-563
+ 5,390
+2 869
'4-2,278

1950
1951
1952
1953
1954
1955
1956
1957

Dec

1958

Jan i

-3
-103

-16

4-24
+ 100
+67
+ 165
+77
+72
+ 147
+ 88
+ 61
+ 142
+44
+20

+24
+74
+245
+ 162
+ 180
+ 185
+99
+49
+93

+ 83

-368

-9

-80

+767

+ 13
+56
+72
+ 124
+ 176
+89
+ 33
-13
-21

+ 36
+262
+ 372
+450
+ 360
+ 335
+ 112
+ 89
+92
'+509

-259

-69

-32

of the BULLETIN for October 1956; for 1955-56, in the BULLETIN for

2

+422
+403
+647
+692
+472
+896
+871
+811

+ 1,057
+ 1,216
+217
+2,299
+657
+473
+ 82
4-38
+61
+44
+ 15
+25
+59
+22
+26
+ 36
+40
+25

4-181
4-252
+ 171
+ 186
4-222
+208
+217
+248
+ 128
+ 183
+ 165
'4-117

c
r
Corrected.
Revised.
1
Data on extensions and repayments for commercial banks and retail
outlets have been adjusted to avoid duplications resulting from large
transfers of other consumer goods paper. As a result, the differences
between extensions and repayments for these institutions do not equal the
changes in outstanding credit.
2
Obtained by subtracting instalment credit repaid from instalment
credit extended, except as indicated in note 1.
NOTE.—Monthly figures for 1940-54 are shown on pp. 1043-54




3,934
4,691
5,098
5,304
5,465
5,891
6,328
6,512

3,292
3,257
3,255
3,284
3,313
3,339
3,382
3,343
3,418
3,358
3,394
3,498

Change in outstanding credit

1957—Jan.*
Feb
Mar
Apr !
May
June
July i
Aug
Sept
Oct i
Nov

3,404
4,385
5,012
5,683
6,511
7,553
8,603
9,642

+565
+272
+652
+220
+76
+ 390
+235

+9

+50
+ 84
+ 58
+72
+72
+70
+88
+88
+54
+61
+55
+59

+ 52
+ 53
+95
+86
+95
+ 102
+ 100
+ 32
+ 33
+51
+ 130

+26
'+13

-149
-114
-104
-134
+52
+51
-103
+47
-2
-24
+94
'+373

-109

+ 38

-38

+70

-118

-23
-42

-18

+25
+ 30
-15
-95
+ 58
+41
-77
+50
-13
-56

December 1957, pp. 1420-22.
A discussion of the composition and characteristics of the data and
a description of the methods used to derive the estimates are shown
in the BULLETIN for January 1954, pp. 9-17. Estimates of instalment
credit extended and repaid are based on information from accounting
records of retail outlets and financial institutions and often include charges
incurred under the instalment contract. Renewals and refinancing of
loans, repurchases and resales of instalment paper, and certain other transactions may increase the amount of both credit extended and credit
repaid without adding to the amount of credit outstanding.

342

BUSINESS ACTIVITY
SELECTED BUSINESS INDEXES
[Indexes, 1947-49= 100. The terms "adjusted" and "unadjusted" refer to adjustment of monthly figures for seasonal variation]
Construction

Industrial production
(physical volume)*

contracts
awarded (value) *

Manufactures
Year
or month

Total
Total

Durable

Nondurable

Minerals

Total

Residential

All
other

Employment and pa:pro Us2

Nonagricultural
employment

Manufacturing
production workers
Employment

DepartWholeFreight ment
Consales
carstore sumer comload- sales* prices 2 modity
ings* (retail
prices 2
value)

Payrolls

AdAdAd- Unad- AdAdAdAdAd- Unad- Unad- AdAdAdjusted justed justed justed justed justed justed justed justed justed justed justed justed justed
38
39
30
39
45

38
42
24
37
47

37
36
34
40
44

Adjusted

Unadjusted

68.7
69.0
52.8
58.4
66.9
62.1
64 2

31.1
37 1
24.0
25.7
32 6
30.4
32 1

90
98
83
92
107

46
59

61.3
61 9
55 2
58.5
64 3
63.5
65 2

27
32
30
30
34

105
110

34
36

Unadjusted

74 0
85 7
76 4
71.6
72 9
73.1
75 o

44
49

43
48

43
49

42
46

45
53
42
45
62
57
59

1926
1927
1928
1929
1930

51
51
53
59
49

50
50
52
58
48

52
49
53
60
45

48
50
51
56
51

63
64
63
68
59

69
69
73
63
49

73
71
76
52
30

67
68
70
70
62

67 5
67 9
67.9
71 0
66.6

65.5
64.1
64.2
68.3
59.5

33 0
32.4
32.8
35.0
28.3

115
111
112
115
99

37
37
37
38
35

75 6
74 2
73.3
73 3
71.4

65.0
62.0
62.9
61.9
56.1

1931
1932
1933
1934
1935

40
31
37
40

39
30
36
39

31
19
24
30

38

34
15
14
17

41
20
18
24

47

51
42
48
51
55

22
8
7
7

46

48
42
48
49

20

60.3
53 4
53.6
58 8
61.3

50.2
42.6
47.2
55.1
58.8

21.5
14.8
15.9
20 4
23.5

79
59
62
67

32
24
24
27

69

29

65.0
58 4
55 3
57 2
58.7

47.4
42 A
42.8
48.7
52.0

1936
1937
1938
1939
1940

56

55

49

61

32

60
46
57
66

55
35
49
63

27.2
32.6
25.3
29.9
34.0

81

61
48
58
67

63.9
70.1
59.6
66.2
71.2

84
67
76
83

35
32
35
37

59.3
61 4
60 3
59.4
59 9

52.5
56.1
51.1
50.1
51 1

1941
1942
1943
1944
1945

87
106
127
125
107

88
110
133
130
110

62
69
74
75
76

9
7
0
2
9

56 8
64.2
67 0
67.6
68 8

1946
1947
1948
1949
1950

90
100
104
97

90
100
103
97

112

113

83 4
95 5
102 8
101 8
102.8

78 7
96 4
104 4
99 2
103.1

1951
1952
1953
1954
1955
1956
1957

120
124
134

121
125
136

111 0
113.5
114 4
114 8
114.5
116 2

114 8
111.6
110.1
110 3
110.7
114.3

118.7
118 9
119.3
119.6
120 2
120 8
121.0
121 1
121 1
121.6
121.6

117.0
116 9
117.2
117.1
117 4
118 2
118.4
118 0
117 8
118.1
118.5

1919
1920
1921
1922
1923
1924
1925

39
41
31
39
47

. ...

127

125

55

34
34
30
43
45

26
18
27
41
49

51
66

57
75

39
45
32
43
42

13

25

30

22

35

64
57
66
69

63
71
62
68
76

32
35
39
44

25
27
37
43

36
40
40
44

65.8
70 2
66.1
69.3
73 3

91
126
162
159
123

84
93
103
99
96

81
84
87
93
92

66
89
37
22
36

54
49
24
10
16

74
116
45
30
50

82 8
90.9
96 3
95.0
91 5

87.9 49.3
103.9 72.2
121.4 99 0
118.1 102.8
104.0 87 8

98
104
104
106
102

44
49
56
62
70

86
101
104
95

95
99
102
99

91
100
106
94
105

82
84
102
113

87
86
98
116

79
83
105
111

185

97.9 81.2
103.4 97.7
102 8 105 1
93.8 97.2
99.6 111.7

100
108
104
88

90
98
104
99

159

94 4
99.4
101 6
99 0
142 102.3

97

107

114
114
118

115
114
116
111
122
129
128

171
183
192

170
183
178
232

129.8
136.6
151.4
137.7
152.9
161.4
162 7

101
95
96

215

106.4
106.3
111.8
101.8
105.6
106.7
104.5

112
114
118

86

118

90

136

106.0
105.8
104.8
104.2
104.7
103.4
105.3
105.0
104.2
102.7
100.7

165.0
164.3
161.5
161.0
163 8
160.5
164.7
164 7
162.6
160.9
157.4

96
98
91
90
90

136
137
131
135

116
128
136
153
137

111

116

139
143

140
144

155
159

126
129

143

145

160

130

147
147
145
145
r
147

164
163
160
160

131
131
130
131

163
162

131

261
268
n a.

280
271
n.a.

172 108.2
183 110.4
201 113.6
204 110 7
248 114.4
266 118.6
274 120 1

132
132
131
130
127
128
129
129
127
123
122

n.a.
n.a.
n.a.
n.a.
na
n.a.
n.a.
na
n.a.
n.a.
n.a.

n.a.
n.a.
n.a
n.a

323
281
286
259

n.a
n.a

267
252

121
z-119

n.a

n.a.

95
97

128
135

1957
146
145
144
144
r
145

Feb
Mar
Apr

May
June
July

145

148
148
145
143
145
135

145
146

r

147

147
146

Sept
Oct
Nov

Dec

141
134

141
137

154
146

128
127

133
»130

132
*131

134
*131

143
*137

*>125

146

143

163
160

'131
132
131

145
144
r
142
139
135

Aug

156

130

n.a
n.a

246
251

n.a

262

n.a
n.a

269
298

120.2
120.1
120.2
120.5
120.6
120.7
120.8
120.4
120.0
119.4
118.8

106.4
106.0
105.9
105.7
105.3
104.9
104.4
103.3
102.8
101.8
100.3

85

92
87
86

85
83

138
138

144
136
129

133
138

1958
Jan
Feb

126

r
• Estimated.
»Preliminary.
Revised.
n.a. Not available.
* Average per working day.
1
Three-month moving average, based on F. W. Dodge Corporation
data. A description of the index may be obtained from the Division of
Research and Statistics.
A new adjusted index covering the 48 states will appear in the BULLETIN
for April 1958.




n.a.

118.3 98.1 97.4 149 2
HX6.9 ^95.6 *>95.2 1 4 5 . 4

82

^131 122 3

76

126

118 8
"118.9

2
The indexes of employment and payrolls, wholesale commodity prices,
and consumer prices are compiled by the Bureau of Labor Statistics.
Non agricultural employment covers employees only and excludes personnel in the armed forces. The consumer price index is the revised series,
reflecting, beginning January 1953, the inclusion of some new series and
revised weights; prior to January 1953, indexes are based on the "interim
adjusted" and "old" indexes converted to the base 1947-49= 100.

343

PRODUCTION
INDUSTRIAL PRODUCTION
[Federal Reserve indexes, 1947-49 average= 100]

Industry

1947-49 Annual
average
proportion
1956 1957 Jan.

1957
Feb. Mar. Apr. May June July

1958
Aug. Sept. Oct. Nov. Dec. Jan.

SEASONALLY ADJUSTED

INDUSTRIAL PRODUCTION—TOTAL... 100.00

143

143

145

146

145

144

144

145

145

145

144 '142

139

135

MANUFACTURES—TOTAL

90.02

144

145

147 '147

147

145

145

147 '147

147

146

143

141

137

134

Durable Manufactures—Total

45.17

159

160

163

164

160

760

163

162

163

160

756

154

746

143

143

132

132

134

136

131

128

121 107

Primary metals

r

163

6.70

138

132

143

137

134

28.52
5.73
13.68
9.04
4.64
7.54
4.80
2.74
1.29

172
135
171
153
207
199
125
310
166

176 178 180
137 138
139
172 '173
168
154 155
150
'206 '206
204
213 '218 '222
128 '132 136
344 348 353
174
172 173

179
138
172
155
204
219
131
355
173

775 '176
138
(38
167 168
152 152
196 199
'216 '216
124 1 2 7
357 352
172 1 7 3

Clay, glass, and lumber products
Stone, clay, and glass products
Lumber and products

5.97
2.82
3.09

140
158
123

133
155
114

134
155
115

134
155
115

134 735 140 733
155 157 156 155
115 117
125 '113

Furniture and misc. manufactures
Furniture and fixtures
Miscellaneous manufactures

4.04
1.64
2.40

755
122
144

132 131
120 119
140 140

44.85

129

130

Metal fabricating
Fabricated metal products
Machinery
Nonelectrical machinery
Electrical machinery
Transportation equipment
Autos, trucks, and parts
Other transportation equipment
Instruments and related products

Nondurable Manufactures—Total...
Textiles and apparel
Textile mill products
Apparel and allied products

133
155
114

r

130

r

129 732
118 '119
'137 '140

r

r
r

130

131

106 106
101 100 100
112 112
113

775 775
140 139
172 170
150
151
'215 '209
r
216 '212
129
131
•345 340
174 173

753
135
156
137
194
'194
113
'315
168

759
128
152
132
192
192
109
317
165

737 725
-155 151
r
109 107

724
-148
103

724
143
108

725
116
131

723
114
129

127

126

97
91
104

96
93

777 '776 '705
'135 131 '116
'103 '103 100

707
115

r

131
106
100
113

131
107
101
113

11.87
6.32
5.55

108
104
112

105 105
99 101
111 '110

Rubber and leather products
Rubber products
Leather and products

3.20
1.47
1.73

117
133
104

118 '118 727
141
135 '138
104 '101 104

724
145
105

775
132
105

Paper and printing
Paper and allied products
Printing and publishing
Newsprint consumption
Job printing and periodicals

8.93
3.46
5.47
1.85
3.62

145
159
136
132
138

148
158
141
131
146

148
159
141
'133
145

147
157
141
132
146

147
157
141
132
145

'146
156

148
158

140
128
146

141
132
145

Chemical and petroleum products
Chemicals and allied products
Industrial chemicals
Petroleum and coal products

9.34
6.84
2.54
2.50

167
111
196
141

172
184
203
141

'/73
'183
'203
'146

172
183
203
143

777
182
202
141

11.51
10.73
8.49
2.24
.78

112
113
113
112
107

112
112
112
113
111

111
111
111
113
'110

113 774
113
114
113 '114
111
115
114
111

•777
112
112
109
109

'772
112
112
112
110

MINERALS—TOTAL

9.98

129

128

131

132

'132

131

130

127 '128

Mineral fuels
Coal
Anthracite
Bituminous coal
Crude oil and natural gas
Crude oil
Natural gas and gas liquids

8.35
2.68
.36
2.32
5.67
4.12
.70

129
85
55
90
150
137
191

128
83
49
88
150
137

131
'81
'52
86
154
142
196

•732 '732
87
92
'50
'49
93
99
154 '151
144 '142
198
198

'737
87
'52
93
151

130
'83
'56
88
153
141
204

727 727
86
'84
60
'40
90
90
146 1 4 8
136
134
194 '197

Metal, stone, and earth minerals
Metal mining
Stone and earth minerals

1.63
.82
.81

127
114
141

129
116
143

131
120
142

735
159
116

132

r

134
159
112

r

l31

r

130

128

no4 noi

r

r

Foods, bever.ages, and tobacco
Food and beverage manufactures
Food manufactures
Beverages
Tobacco manufactures

Preliminary.

'Revised.

NOTE.—Revised seasonally adjusted industrial production indexes for
the period beginning January 1957 are shown in the above table following
the practice announced in the BULLETIN for March 1957 pages 277-278.
Revised indexes for autos will be shown in the BULLETIN for April, when
the results of the review of seasonal adjustment factors for indexes of
consumer durable goods and electricity and gas utilities will be published.
Revised indexes of industrial production, of consumer durable goods,
and of electricity and gas utilities for the year 1956 will be shown in the
BULLETIN for April. The revised index of total industrial production,
seasonally adjusted, for 1956 is as follows:




105
101
110

132
122
142

732
121
143

Jan..
Feb..
Mar..

'775
134
104

99

772 770
'137 141
164 163
148 -143
-197 -203
'208 '203
126 125
'334 322
170
170

733 ••733 735 '735 732 '729
121 '122 123 1 2 2 '120 '118
142 141 143 1 4 3 140 136

732 732
120 120
141 141
r

131

131

779 779
139 141
171 173
153 152
'207 '215
'220 216
132 128
355 '351
173
173

133

'779 '779
135 '136
106 '105
148
159
141
132
146

146
156
140
129
146

106
101
101
112 1 1 2
722
141
106

'720
138
104

149
163
141
129
146

149
161
142
131
147

'98
95
110 107

749 '749
161
162
142 141
130 129
148 '148

746
152
142
131
148

745
154
140
126
147

l71 '773 '772 r174 '775 174 '773 '777 '769
182 185 184 185 186 185 185 184 '181
>"202 '204 '204 205 '•206 207 206 '201 1 9 6
142 142 139 '142 1 4 3 141 139 1 3 5
137

769
181
193
'133

140
'200

773
114
113
116
112

'773
'113
'114
'109
114

•772 773 777 '770 773
113 113 1 1 2 110 1 1 4
112 1 1 2 111 110 113
113 1 1 3 1 1 2 110
118
111 1 1 4 1 1 0 107 106

777
112
112

129

129 '127 '123

725
84
'50
89
149
134
198

729
82
'48
88
151
136
196

'730 '725 '737 '732 rI33
121 114 121 1 2 2 121
142
140
143 146
.143
.143
.142

725 '723
80
77
'45
'43
85
82
151 '145
136 1 3 2

'729 r125
115 107
144 143

-720
100
•140

122

121

'722
70
'40
74
146
131

720
68
43
72

-725
110
141

725
110
146

.143
Apr..
July
137
Oct..
.145
.142
May.
Aug
143
Nov..
.145
.142
June.
Sept
144
Dec.
.146
Revised seasonal adjustment factors for all published production
indexes will be shown in a pamphlet Seasonal Adjustment Factors—1947-57
to be available within the next month upon request to the Division of
Administrative Services, Board of Governors of the Federal Reserve
System, Washington 25, D. C.
For other notes see end of table.

344

PRODUCTION
INDUSTRIAL PRODUCTION—Continued
[Federal Reserve indexes, 1947-49 average = 100]
1947_49 Annual
1957
average
proportion
1956 1957 Jan. Feb. Mar Apr. May June July

Industry

1958

Aug Sept Oct. Nov Dec. Jan.

WITHOUT SEASONAL ADJUSTMENT

INDUSTRIAL PRODUCTION—TOTAL.. 100.00

143

143 144

143

145

MANUFACTURES—TOTAL

90.02

144

145

146

149 149

146

144

146 137 147 148 148 144

135

Durable Manufactures—Total

45.17

159

160

164

167

166

163

159

162

151 160 160 159 156

147

143

6.70
5.03
3.51

138
135
142
131
143
139
167

132
130
140
137
139
138
143

146
147
159
148
160
157
178

148
149
159
149
160
159
167

144
144
154
147
154
152
163

140
138
148
144
147
146
151

135
133
143
141
142
141
149

136
134
141
139
140
141
136

118
118
130
136
128
129
123

128
127
135
137
134
133
137

128
126
136
139
134
134
132

129
126
135
132
134
132
143

121
118
126
121
126
125
132

106
102
108
107
107
107
108

101
95
99
98
99
96
111

119
117
126

108
107
113

118
117
126

124
122
133

122
119
137

115
113
124

109
108
116

119
117
126

90
90
89

106
107
103

105
104
110

106
105
107

99
99
98

87
87
88

85
83
92

144
164
133
132
115
123
280

136
164
129
135
114
123
275

143
170
135
137
113
128
289

148
167
139
146
118
133
259

142
167
132
141
116
132
267

145 140 142 117
175 172 167 157
140 131 134 114
146 149 137 126
129 115 110 104
137 133 128 118
283 285 280 279

132 134
160 153
122 120
126 120
107 116
115 110
282 263

138 129 117
156 159 161
126 125 128
128 131 134
115 112 112
113 114 120
263 274 275

121
160
134
134
106
114
275

118
140
115
215
146

112
129
104
198
136

116
138
111
203
150

125
144
121
200
156

120
137
105
206
157

118 110 108
138 132 138
113 108 115
213 215 211
141 131 140

106 114 117 112
98
125 130 134 121 104
105 109 110 '98
80
192 200 199 167 159
125 131 140 138 118

110
87
167

Primary metals
Ferrous metals
Pig iron and steel
Pig iron
Steel
Carbon steel
Alloy steel

.37
3.05
2.62

.43

Ferrous castings and forgings
Tron and steel castings
Steel forgings

1.52
1.29

.23

Nonferrous metals
Primary nonferrous metals
Copper smelting
Copper refining
Lead
Zinc
Aluminum

1.67

.38
.09
.06
.04
.10
.09

Secondary nonferrous metals
Nonferrous shapes and castings
Copper mill shapes
Aluminum mill shapes
Nonferrous castings

.13
1.16

.63
.20
.33

Metal Fabricating

28.52

135

86
107
'73
214
109

145

146 146

172 176 181 185 184 179 174 176 167 174 r174

r

173

141 134

r

174

132
133

166 161

135
141
125
151
110

139
152
125
146
99

136
148
130
113
84

138
149
130
116
103

138
149
129
127
101

140
148
126
190
98

136
149
124
122
95

139
152
124
149
104

134 141 145 142 139 133
149 153 156 156 156 154
118 121 122 124 125 120
163 205 195 146 112 110
81 105 122 115
99 '76

111
146
112
116

13.68

171

168 174

177

177

169

166

168

158 167 173 170 165 157

154

9.04
8.13
1.02
7.11

153
147
86
156
197
168

150 157
146 153
86
84
155 163
182 203
151 152

160
154
89
164
204
175

161
154
92
163
202
190

157
152
90
161
198
164

154
149
87
158
193
158

153 146 143 149
148 144 141 143
85
82 -80
82
157 152 150 152
188 179 175 175
160 129 119 159

207
198
224

204 '206
201 210
205 188

210
210
201

208
208
196

194
204
159

189
200
153

197 183 '213 '220 '220 '215 194
200 195 196 '201 196 198 197
180 143 256 269 282 260 176

199
125
138
112
92
58
218
167
121

213
128
146
104
100
50
194
137
123

225
141
174
98
97
42
182
134
134

231
148
178
113
110
57
200
156
140

228
142
171
109
105
52
193
162
134

223 214
135 127
155 144
120 113
107 101
69
60
224 215
154 148
127 121

217
130
156
119
108
62
228
156
118

205
114
134
103
'96
52
208
109
106

209
123
148
103
r-97
48
195
146
113

194
100
84
'85
'69
29
184
136
114

198 213 '203
110 139 124
88 171 151
'93 100 '95
'95 118 '99
47
40
46
161 157 183
122 116 103
127 131 116

197
116
132
92
83
26
216

310
548
118
63
54

344
608
129
77
80

351
624
128
78
77

356
630
130
84
86

359
633
132
88
98

357
633
132
81
86

348
614
134
76
81

351
615
136
84
88

344
609
131
73
71

341
606
128
69
84

340
597
126
83
85

334 322 322
592 569 '571
123 121 125
71 '61
74
72
76
59

320
569
122
64
66

172

173

174

174

174

171

171

168

172

174

172

165

5.73
2.68
2.12

Machinery
,

.68
.69

Electrical machinery
Electrical apparatus and parts
Radio and television sets

4.64
3.23

Transportation equipment
Autos, trucks, and parts
Autos
Trucks
Light trucks
Medium trucks
Heavy trucks
Truck trailers
Auto and truck parts

7.54
4.80
1.50

Other transportation equipment
Aircraft and parts
Shipbuilding and repair
Railroad equipment
Railroad cars

148 145

.30
.63

Fabricated metal products
Structural metal parts
Stampings and misc. metal products
Tin cans
Furnaces, gas ranges, and heaters
Nonelectrical machinery
Farm and industrial machinery
Farm machinery
Industrial and commercial machinery
Machine tools and presses
Laundry and refrigeration appliances

148

.74

.66
.22
.19
.14
.07
2.58
2.74
1.30

.81
.53
.35

145
140
'82
148
164
149

140
136
'78
144
154
138

138
135
'80
143
153

134
130
81
137
143

'119

192
189
187

Instruments and related products

1.29

166

Clay, Glass, and Lumber Products

5.91

140 133 125 131 132 135 137 144 127 143 141 139 128 117 117

Stone, clay, and glass products
Glass and pottery products
Flat glass and vitreous products
Flat and other glass
Glass containers
Home glassware and pottery

2.82
1.09

.60
.47
.26
.23

158
140
164
165
132
87

155
140
161
164
136

148
143
167
171
127
98

151
145
166
168
134
102

153
144
164
166
138
100

155
141
160
163
132
100

158
141
159
161
137
97

159
139
157
160
144
85

150
132
149
151
137
78

163
142
156
159
154
91

162
141
163
167
138
90

161
144
165
170
143
92

152
141
165
170
128

145
134
161
166
117

137
130
150
154
128

Cement
Structural clay products
Brick
Clay firebrick, pipe, and tile

.32
.35
.12
.20

157
137
134
142

148
129
115
140

113
120
94
140

116
120
96
139

133
121
101
138

145
129
119
138

161
130
122
138

161
133
123
143

119
134
122
145

185
137
129
145

187
135
124
144

177
134
126
143

152 132
126 117
113
95
138 133

109
123*

Concrete and plaster products
Misc. stone and earth manufactures

.48
.58

194
173

188
174

173
174

177
177

181
177

185
176

194
177

200
177

198
173

201
175

198
175

193
173

182 172
166 165

165
158

r

Revised.




For other notes see end of table.

172

170

345

PRODUCTION
INDUSTRIAL

PRODUCTION—Continued

[Federal Reserve indexes, 1947-49 average= 100]
Annual
947-49
average
propor1956 1957 Jan.
tion

Industry

1957
Feb.

Mar. Apr.

1958

May

June

July

Aug. Sept. Oct.

Nov. Dec.

Jan.

WITHOUT SEASONAL ADJUSTMENT

—Continued
Lumber e r Droducts
L u m b and
Millwork a n d plywood
Millwork.
Softwood plywood
W o o d containers
.
Furniture and Misc.

.

.

.

Manufacturing....

123
107
189
121
301
91

114
96
187
112
312
84

104
89
167
90
295
88

112
98
181
105
306
86

112
100
170
102
282
86

117
100
191
107
330
87

118
99
196
110
339
88

131
110
219
146
339
88

105
88
168
101
277
83

125
106
209
144
314
83

4.04

135

132

128

130

131

129

128

130

125

136

r

118
116
121

119
118
121

119
119
121

111
117
118

115
114
118

118
117
119

116
115
118

124
124

126
126
125

Furniture and fixtures.
Household furniture
Fixtures and office furniture

1 64
1.10
.54

122
121
122

120
120
120

Miscellaneous manufactures

2.40

144

140

136

137

139

137

137

139

131

Nondurable IVIanufactures—Total

44.85

129

130

128

131

132

129

129

130

122

Textiles and Apparel

11.87

108

105

no7

112

r

r

108

106

104

'97

6.32
3 72
2 30
97
.45

104
108
102
118
98

99
105
95
119
94

102
108
99
129
87

105
111
101
129
103

105
112
102
124

102
103
95
118
'89

100
107
99
111
109

'99
104
96
111
102

'86
'86
75
'110
'64

97
.16
.75

86
88
86

75
78
75

74
80
72

81
85
80

79
85
78

78
82
77

81
89
79

87
88
88

1 15
.65
.45
.20
.50

108
100
102
96
119

104
93
89
102
118

100
98
98
97
102

105
103
104
101
108

109
106
109
'98
113

103
92
91
r94
117

103
'90
87
'96
119

Textile mill products
Cotton and synthetic fabrics
Cotton consumption
Synthetic f a b r i c s . . . .
Fabric finishing
Wool textiles
Wool apparel yarns
Wool fabrics
Knit goods
Hosiery
Full-fashioned hosiery
Seamless hosiery
Knit garments

121
103
205
132
327
83

3.09
2 05
.60
39
.12
.29

113

124

141

119
98
207
124
344
82

106
89
178
100
307
78

92
75
155
80
280
77

98
81
170
58
358
74

r

139

'734

rl28

120

125
127
122

121
123
116

120
122
116

113
115
110

150

148

143

134

125

135

137

131

123

124

r

i04

r

108

no2

101
98
105
113
'94

101
107
97
121
'94

103
106
97
122
'86

67
71
67

82
86
81

79
79
80

107
92
87
104
125

96
76
69
'92
123

110
95
88
114
128

'110
95
87
116
129

144
134
r

108

r

92

98

'98
107
97
121
'97

'89
'97
84
'116
'90

94
102
94
110
82

71
66
74

65
66
65

55
61
54

56

109
'98
88
121
125

'104
'93
88
107
118

'92
'78
74
'86
111

94
90
87
99
99

55

Floor coverings *
Woven carpets . . .

48
.31

83

71

86

92

91

85

69

64

46

68

75

59

59

61

Apparel and allied products
Men's suits and coats
Men's suits
Men's outercoats
Shirts and work clothing

5.55
1 78
.73
50
.13
.99

112
110
95
93
78
118

111
102
86
87
60
112

113
119
107
114
51
126

120
111
95
100
50
121

123
114
101
104
63
121

114
100
88
90
60
106

112
111
102
100
'86
115

110
104
91
88
'80
111

96
'74
'55
54
'48
'83

116
110
'98
93
'93
117

109
100
78
'76
'68
113

112
'99
'72
73
'53
116

107
'98
'73
'77
'41
113

'96
'90
'72
'76
'40
100

Women's suits and coats.

1 85
.76

112
128

112
128

108
131

130
157

148
169

119
102

115
96

111
127

101
130

118
148

109
133

108
134

102
123

80
85
117

112

r

103

111
122
106

Misc apparel and allied mfrs

1.92

113

117

112

117

118

112

110

113

113

120

122

123

121

Rubber and Leather Products

3.20

117

118

123

130

130

119

114

117

101

123

121

123

116

Rubber oro ducts
Tires and tubes
Auto tires
Truck and bus tires
..
Miscellaneous rubber products

1.47
.70
40
.30
.77

133
121
123
119
144

135
123
134
107
147

147
126
136
111
166

148
136
150
117
159

148
134
151
111
161

135
121
135
103
147

133
125
137
108
140

132
123
136
105
141

112
109
122
91
114

135
120
131
105
150

139
124
135
110
153

145
129
139
117

135
119
124
112
150

114
106
113
97
121

Leather and products
Leather
Cattlehide leathers
Skin leathers

1.73
44
29
.15

104
91
99
76

104
89
98
72

102
89
98
72

115
99
108
82

115
95
103
81

106
89
96
76

98
88
94
75

105
97
107
77

92
74
82
58

112
92
103
72

105
87
97
69

104
90
101
71

99
88
98
68

94
69
73
35
110

94
80
89
63

Shoes and slippers * . . . . .
Miscellaneous leather products

99
136

90
.39

97

94

90

96

96

90

87

92

92

100

98

98

98

Paper and Printing

8.93

145

148

144

147

151

150

149

148

136

147

151

156

152

r

l41

142

Paper and allied products
Pulp and paper
Wood pulp
Paper and board
Printing paper
Fine paper
Coarse paper
Miscellaneous paper
Paperboard

3 46
1.76
51
1 25
.22
14
20
.18
41
.10

159
157
179
148
140
145
136
170
155
131

158
154
176
145
133
140
127
179
153
124

157
158
182
149
140
140
139
184
154
118

161
160
181
151
139
147
139
189
155
128

163
159
181
150
137
152
131
186
158
120

161
159
182
150
136
147
131
192
155
126

158
157
182
147
136
143
125
182
157
124

161
155
175
147
136
142
123
184
154
127

139
132
152
124
121
107
102
160
128
118

165
157
181
147
132
139
127
175
158
134

163
153
172
146
125
145
124
171
160
134

170
163
187
154
135
143
135
185
166
141

163
156
183
145
132
138
129
172
157
120

140
137
'153
131
123
131
114
167
134
101

152
150
176
140
134
135
122
179
142
114

1.70
.51
.11

162
159
170

163
157
179

156
148
179

163
156
183

167
163
177

163
155
184

160
155
174

166
160
183

147
141
163

173
172
175

173
170
178

177
168
204

171
167
182

142
132
171

155
143
187

Shipping containers
Sanitary paper products
' Revised.




.

For other notes see end of table.

95

346

PRODUCTION
INDUSTRIAL PRODUCTION—Continued
[Federal Reserve indexes, 1947-49 average= 100]
1947_49 Annual
1957
average
propor1956 1957 Jan. Feb. Mar. Apr. May June July
tion

Industry

1958
Aug. Sept. Oct. Nov. Dec. Jan.

WITHOUT SEASONAL ADJUSTMENT

—Continued
Printing and publishing.
Newsprint consumption
Job printing and periodicals.

5.47
1.85
3.62

136
132
138

141
131
146

136
123
143

139
128
144

144
137
147

143
137
146

142
140
144

140
132
144

134
112
144

136
116
146

144
133
150

146
140
150

145 1 4 2
140 129
148 149

Chemical and Petroleum Products.

9.34

167

172

175

175

174

172

172

168

165

171

174

176

173

r

17 fr

Chemicals and allied products
Industrial chemicals
Basic inorganic chemicals
Industrial organic chemicals
Plastics materials
Synthetic rubber
Synthetic fibers
Miscellaneous organic chemicals.

6.84
2.54
.57
1.97
.24
.11
.59
1.03

111
196
189
197
256
236
181
189

184
203
202
204
272
245
199
186

184
205
198
208
263
243
205
193

186
207
208
207
277
238
202
191

186
206
206
206
280
242
196
190

184
206
210
205
275
219
203
188

184
206
209
205
278
245
198
188

179
200
197
201
266
225
189
191

174 181
'195 200
189 196
196 '202
240 269
209 241
191 '198
188 184

185
205
203
r
205
283
252

187
203
205
203
276
282
201
178

183
198
197
198
259
'268
194
179

183
195

••202
184

190
208
209
207
299
274
206
179

Vegetable and animal oils.
Vegetable oils
Grease and tallow

.64
.48
.16

132
124
158

130
121
154

147
143
159

152
143
181

134
129
150

121
113
146

116
103
155

109
94
154

107
95
142

113
100
153

120
110
151

150
148
159

149
147
156

136
132
147

141
136
156

Soap and allied products.
Paints
Fertilizers

.71
.66
.23

111
124
129

112
121
132

120
122
125

117
121
135

128
120
166

113
122
181

115
122
172

104
125
119

80
126
104

115
125
108

115
122
119

126
119
122

110 105
115 1 1 4
115 115

111
113

2.50
1.97
1.04
.98
.06

141
150
159
153
254

141
150
162
157
249

148
160
164
158
263

145
154
157
153
242

139
149
156
150
254

137
145
154
149
247

139
148
161
155
255

139
147
162
156
258

139
146
161
155
260

144
152
168
163
265

144
152
170
166
233

139
145
162
157
242

136
147
160
156
233

138
153
165
161
236

.56
.30
.26

147
193
95

147
194
93

170
225
108

164
216
104

151
197
99

143
187
93

143
190
90

142
188
90

141
185
89

144
191
89

142
188
90

137
181
86

139
184
87

150
200
93

.10
.17

111
119

98
113

120
118

116
114

109
116

93
126

89
122

83
104

82
111

82
112

90
108

87
107

106
109

117
105

.26
.15

102
104

104
94

110

110
94

111

107
92

108

107
104

106
107

106
122

106
119

103
121

95
81

85
54

104

108

117

115

122

128

124

113

106

102-

104 1 0 8
102 104
123 124
139 148
108 104

116 1 1 6
111
114
120 116
148 150
97
91

122
123
118
150
94

128
131
130
154
109

125
113 1 0 7
126 1 1 6
109
140 133
131
156 140 136
124 122 122

102
105;
134.
149
118;

122
122
135
128
109

140
139
161
151
122

151
145
165
142
149

120
97
119
97
141

101
87
105
78
117

91
88
100
77
96

111
163 '213
98
'98 105
87
78
88
r
106 '111 '117

230
108
94
117

158
105
92
114

Petroleum and coal products.
Petroleum refining
Gasoline
Automotive gasoline..
Aviation gasoline....
Fuel oil
Distillate fuel oil.
Residual fuel oil.
Kerosene
Lubricating oil.
Coke
Asphalt roofing and siding.
Foods, Beverages, and Tobacco.

77
11.51

112

112

103
105

r

10.73
8.49
1.48
.46
.83

113
113
133
151
119

112
112
128
148
110

.69
.14
.07
.19
.28

110
107
117
101
112

109
119
102
111

102
100
85
82

102
109
107
96
97

105
104
131
144
117
109
117
115
105
101

Canned and frozen foods.
Grain-mill products
Wheat flour
Cereals and feeds

1.13
1.16
.46
.70

133
101
84
113

126
100
87
109

87
100
92
105

84
100
92
106

82
99
90
106

89
95
82
104

91
97
81
108

Bakery products.
Sugar
Cane sugar
Beet sugar

1.64
.27
.11
.13

98
122
116
121

100
120
112
121

95
85
102
65

96
57
96
20

96
54
107

98
60
110
13

99
68
117
21

102
88
140
38

104
74
122
27

103
80
123
38

102
117
125
105

101
262
108
390

101
279
97
431

101
233
93
350

.71
1.41

107
105

112
108

113
101

123
103

119
103

96
102

84
106

95
114

81
113

103
113

155 147
113 '112

132
110

99
108

138 '122 '120

121

105

99

123 105
130 127
'67 '34
127
84

102 108 117 1 0 0
111
'97 '88 '73
'47 109 140 '99
101 125 158 151

89
81
88
101

121
129
111

120
126
115

Dairy products
Butter
Natural cheese
Concentrated milk.
Ice cream

Confectionery
Miscellaneous food preparations.
Beverages
Bottled soft drinks. .
Alcoholic beverages.
Beer and ale
Liquor distilling. .
Liquor bottling...




•"138
163
121
111
91

r

Revised.

2.24
.54

112

113

90

1.70
1.02
.17
.37

105
101
78
119

103
101
83
111

86
88
79
81

.78
.46
.17

Tobacco manufactures.
Cigarettes
Cigars.
Preliminary.

101
104

107
111
104

111
116
106

110
117
101

265"
189
178

124.

73

102

Food and beverage manufactures.
Food manufactures
Meat products
Beef
Pork

171

136
116,
146,

103
104
133
151
117

97

111

'120

93 1 0 6 103 108
86 104 109 117
86 '82 '81
85
105 111
95
97
114
119
112

111
115
110

104
109
102

113
121
104

For other notes see end of table.

134
113
137
114
151

r

102
114
81

118
123
116

119
122
121

85
87
92
73
84

92
97
98
80
82

84
84

109
'99
'98
'97
89
86
104 104

86
100
90
106

110
111
116

87
90
86

98

108

347

PRODUCTION
INDUSTRIAL PRODUCTION—Continued
[Federal Reserve indexes, 1947-49 average = 100]

Industry

1947-49 Annual
average
proportion
1956 1957 Jan.

1957
Feb. Mar. Apr. May June July

1958
Aug. Sept. Oct. Nov. Dec. Jan.

WITHOUT SEASONAL ADJUSTMENT

—Continued

Mineral Fuels
Coal
Anthracite
Bituminous coal
Crude oil and natural gas
Oil and gas extraction
Crude oil
Natural gas and gas liquids
Natural gas
Natural gas liquids
Oil and gas well drilling

Metal, Stone, and Earth Minerals.

9.98

129

128

131

131

131

131

132

131

123

130

130

129

122

122

121

8.35

MINERALS—TOTAL

129

128

135

135

134

132

130

127

119

126

127

127

123

"124

124

2.68
.36
2.32

85
55
90

85
57
90

87
52
93

88
43
95

83
46
89

82
50
87

88
64
92

65
32
71

86
52
92

86
52
91

87
49
93

80
46
86

73
42
77

72
48
76

5.67
4.82
4.12
.70
.34
.36
.85

150
145
137
191
199
182
180

150
146
137

157
157
147
214
235
194
160

156
156
148
206
225
189
151

155
153
145
200
214
188
168

153
150
143
194
202
186
168

145
143
136
184
192
177
156

145
139
132
181
196
167
179

145
138
130
186
194
179
185

147
140
132
188
196
180
185

146
140
131

144
141
131

148

184
171

158
154
143
214
240
190
182

182
177

189
160

186
177

143 P144
133

1.63

127

129

109

113

114

124

140

149

143

147

145

138

117

110

Metal mining
Iron ore
Nonferrous metal mining
Copper mining
Lead mining
Zinc mining

.82
.33
.49
.24
.09
.06

114
104
120
136
88
87

116
114
117
133
85
84

91
49
120
133
89
r94

98
50
129
145
96
r97

95
48
127
141
94
r99

111 135
87
159
r
127 119
140 133
r97

151
193
123
139
'87
'92

137
181
108
121
'80

139
182
110
124
'82
r79

137
172
113
132
79

no

124
143
110
125
83
74

92
65
110
131
71
68

82
42
109
131
70
67

Stone and earth minerals

.81

141

143

128

129

133

149 155

153

152

143

138

100

P Preliminary.
' Revised.
i Publication suspended pending revision.
NOTE.—A number of groups and subgroups include individual series
not published separately, and metal fabricating contains the ordnance
group in addition to the groups shown. Certain types of combat materiel

137

145

148

107
84

iii'
130
76
72
131

are included in major group totals but not in individual indexes for autos,
farm machinery, and some other products, as discussed in the BULLETIN
for December 1953, pp. 1269-71.
For description and back figures, see BULLETIN for December 1953
pp. 1247-93 and pp. 1298-1328, respectively.

UTILITY OUTPUT OF ELECTRICITY AND GAS
[Seasonally adjusted Federal Reserve indexes, 1947-49 average = 100]

Series

ELECTRICITY AND GAS—TOTAL
Nonresidential
Electricity .
Residential
Industrial .

1947-49 Annual
average
proportion
1955 1956 Jan.
100.00
41.34
58.66

Atomic energy
Commercial and other

76.18
27.48
23.68
23.49
.19
25.02

Gas
Residential .
Industrial
Commercial and other

23.82
13.86
6.16
3.80

199
217
187

218
241
201

225
248
210

Feb.
227
252
209

Mar. Apr. M a y June July
226
252
207

227
252
209

229
255
211

232
259
213

236
262
217

Aug. Sept. Oct. N o v . D e c . Jan.
236
265
217

234 *230 . 2 3 3 .233 ,235
261
214

199 218 227 229 227 228 231 234 239 240 237 233 236 235 P237
224 250 260 266 266 263 267 274 280 284 280 274 285 282
190 206 213 211 209 214 215 214 217 217 215 213 210 207
174 186 193 191 188 193 194 193 198 198 196 194 191 188
2221 2697 2740 2720 2750 2790 2880 2790 2560 2530 2580 2610 2580 2580
180 194 204 205 202 203 207 210 215 214 210 206 207 209
200
203
201
185

218
223
218
197

220
223
225
203

* Preliminary.
' Revised.
NOTE.—For description and back figures see BULLETIN for October




1958

1957

221
224
222
205

221
225
220
207

222
229
215
209

224
231
215
210

225
231
221
212

225
228
228
212

225
226
231
213

224 *>223 *>225
225
229
214

1956 pp. 1055-69. Indexes without seasonal adjustment may be obtained from the Division of Research and Statistics.

348

PRODUCTION
OUTPUT OF CONSUMER DURABLE GOODS
[Federal Reserve indexes, 1947-49 average= 100]
1947-49 Annual
average
proportion 1956 1957 Jan. Feb.

Product

1958

1957
Mar. Apr. M a y June July

Aug. Sept. Oct. Nov. Dec.

Jan.

133

121

124

117

126 142 131
118 154 140
1 3 4 132 1 2 5
111 1 1 2
121 118 1 1 9
129 130 116
139 139 121
87
85
92
143 148 125
203 189 159
100 102 102
215 199 188
83
83
66
468 421 419

122
127
120
111
117

SEASONALLY ADJUSTED

100.00

Major Durables
Autos . .
.
Major household goods
Furniture and floor coverings...
Household furniture
Floor coverings *
Appliances and heaters
Major appliances
Ranges
..
Refrigeration appliances
Laundry appliances
Heating apparatus
Radio and television sets
Radio sets.
Television sets

...

Other Consumer Durables
Auto parts and tires
Misc home and personal goods

131

130

137

138

134

124

124

129

129

69.72
32.10
36.13
15.32
11.31
4.01
15.60
11.88
2.60
4.98
2.51
3.72
5.21
3.42
1.79

140
138
144
117
121

138
146
132
114
120

147
169
130
114
119

149
167
134
113
117

144
159
132
113
118

131
141
124
114
120

131
139
126
112
118

137
144
133
113
121

143
151
103
150
216
118
224
70
519

127
133
89
140
180
104
205
75
453

128
136
95
128
209
105
181
71
392

137
144
103
153
183
114
189
81
395

133
140
100
151
177
111
185
80
388

119
121
88
136
133
110
167
75
343

119
124
85
138
152
104
186
67
413

123
127
85
135
167
108
226
69
524

137 141 r135
134 r 145 129
142 139 141
118 mi
115
123 124 r123
126 123 134
132 133 144
77
84
85
140 140 146
182 182 212
109
92 102
259 248 237
88
65
68
628 591 521

30.28
14.00
16.28

CONSUMER DURABLES TOTAL

111
105
116

111

114
112

114
114
113

111
112
110

109
104
113

108
103
112

108
104
112

111
110
112

114
111
117

116
112
119

112
109
114

111

109

106

* i i4* 116

114

110

106

132

119

119

141

129

132

142

180
64
401

WITHOUT SEASONAL ADJUSTMENT

100.00

131

130

137

143

142

130

124

131

116

M!ajor Durables
Autos
Mfojor household goods
.
.
Furniture and floor coverings
Household furniture
Floor coverings *
Appliances and heaters
Major appliances
Ranges
Refrigeration appliances
Laundry appliances
Heating apparatus
Radio and television sets
Radio sets
Television sets

69.72
32.10
36.13
15.32
11.31
4.01
15.60
11.88
2.60
4.98
2.51
3.72
5.21
3.42
1.79

140
138
144
117

138
146
132
114

149
174
129
113

157
178
140
116

155
171
143
116

140
155
128
113

131
144
122
108

140
156
129

114

no
117

121 139
134 148
110 133
105 1 1 6
115

124

143
151
103
150
216
118
224
70
519

127
133
89
140
180
104
205
75
453

125
137
94
131
207
88
188
73
408

144
158
116
162
208
100
201
83
427

151
166
114
188
195
104
196
84
411

131
140
92
173
140
103
159
72
326

125
133
82
163
144
99
153
67
318

131
136
88
164
150
114
180
57
414

105
108
59
130
126
94
143
40
339

109
109
77
102
164
109
256
62
627

141
144
93
133
229
134
268
81
625

Other Consumer Durables
Auto parts and tires

30.28
14.00
16.28

111 111
105
116 "\\4

110
109
111

112
110
114

111
107
114

107
101
112

106
103
109

108
107
108

106
109
104

116
114
117

121
120
121

CONSUMER DURABLES—TOTAL. . . .

121

120

116

r

Revised.
Publication suspended pending revision.
NOTE.—For a description of these indexes, see BULLETIN for May 1954,
pp. 438-47.
1

118

119

117

124

118

118 119 1 5 3 132
88 171 151
84
150 1 4 8 138 1 1 8
119 118 1 1 5 1 1 4

124
132
119
110

121
126
89
112
206
104
259
108
547

102
109
79
106
156
80
176
76
365

141

66
417

114

106

102

120

110

101

126

127

123

133
136
90
119
229
121
282
101
627
120
118
122

122

115

187

Individual indexes without seasonal adjustment for woven carpets,
appliances, heating apparatus, radio sets, and television sets may be
obtained from the Division of Research and Statistics,

VALUE OF NEW CONSTRUCTION ACTIVITY
[Joint estimates of the Departments of Commerce and Labor.

Seasonally adjusted.

In millions of dollars]

]^ivate

Year or month

Public

Business

Total
Total

Residential

Total

Total

Military

Highway

Conservation

All
other

1,062
2 117
2,320
2,229
2 030
2,399
3,084
3,162

1,288
1,371
1,137
1,791
2,212
3,218
3,631
3,570

3,330
3 729
4,003
4,416
4 284
4,543
5,113
5,830

3,174
3 574
3,547
3,511
3 774
3,755
3,782
4,180

7,001
9 419
10,901
11,394
11 922
11,961
12,818
13,942

177
887
1,388
1,307
1 030
1,313
1,395
1,275

2,272
2 518
2,820
3,160
3 870
4,050
4,470
4,840

942
912
900
892
773
701
826
975

3,610
5 102
5,793
6,035
6 249
5,897
6,127
6,852

283
292
295
304
303
293
297
298
308
306

456
459
472
497
489
492
493
495
510
503

340
344
349
351
353
340
354
352
350
354

105
104
98
105
99
104
117
111
111
103

406
434
407
401
406
366
374
392
429
427

73
71
76
78
79
80
90
92
94
85

537
551
571
570
574
544
574
594
597
585

356

1 121
1,160
1 152
1,154
1,158
1 094
1,155
1 189
1,231
1 200
1,197

79

595

355
356

1 228
1,169

99
92

461
427

79
81

589
569

1950
1951......
1952
1953... .
1954
1955
1956... .
1957*

29,955
32 739
34,750
37,118
39,601
44,581
46,060
47,255

22,954
23,320
23,849
25,724
27,679
32,620
33,242
33,313

1957_Feb
Mar.
Apr

3,861
3,912
3,906
3,905
3,900
3,833
3,942
3,979
4,064
4,043
4,051

2,740
2,752
2,754
2,751
2,742
2,739
2,787
2,790
2,833
2,843
2,854

1,391
1,383
1.361
1,321
1,324
1,349
1,377
1,388
1,414
1,434
1,444

1,009
1,025
1,044
1,079
1,065
1,050
1,056
1,050
1,069
1,055
1,054

270
274
277
278
273
265
266
257
251
246
243

303

508

4,013
3,958

2,785
2,789

1,403
I 416

1,027
1,017

235
231

285
276

507
510

May

June..
July
Aug.
Sept
Oct
Nov
Dec.P
1958—Jan.*>

Feb.**
9

Preliminary.




14,100 5,680
12 529 7,217
12,842 7,460
13,777 8,436
15 379 8,526
18,705 10,160
17,632 11,828
16,571 12,562

Indus- Com- Public
trial mercial utility

Other
nonresidential

100

423

349

PRODUCTION
CONSTRUCTION CONTRACTS AWARDED, BY TYPE OF OWNERSHIP AND BY TYPE OF CONSTRUCTION
[Figures for the 48 States, as reported by the F. W. Dodge Corporation. Value of contracts, in millions of dollars]
By type of
ownership
Year or month

By type of construction

Total
Public

Private

Nonresidential building

Residential
building

Fac-

Commercial

Educational

Other

Public
works
and
public
utilities

31,612
32,173
2,221
2,229
2,770
3,045
2,980
2,947
3,013
2,953
2,575
2,443
2,377
2,057

10,666
11,238

20,946
20,935

12,862
13,039

2,381
2,168

3,140
3,267

2,883
2,936

2,804
2,922

7,542
7,841

848
744
810
962
916
975
1,004
1,027
841
799
862
878

1,373
1,486
1,959
2,083
2,064
1,972
2,009
1,926
1,734
1,644
1,515
1,180

946
1,186
1,345
1,311
1,202
1,143
1,224
1,047
1,050
900
699

172
197
316
257
191
179
225
171
204
159
181
129

206
231
276
282
272
303
305
272
276
247
263
208

239
180
262
260
251
245
249
239
221
235
265
237

170
141
210
249
293
298
295
251
229
224
261
183

625
535
519
653
663
721
796
796
598
528
508
602

1957_jan...
Feb...
Mar..
Apr...
May..
June..
July..
Aug..
Sept..
Oct...
Nov..
Dec...

2,300
2,161
3,078
2,US
3,398
3,223
2,901
2,818
2,550
2,614
2,371
1,982

892
838
1,018
880
1,279
1,323
1,002
802
816
787
867
734

1,407
1,323
2,060
1,897
2,119
1,900
1,898
2,016
1,734
1,827
1,504
1,249

817
875
1,107
1,233
1,296
1,135
1,287
1,284
1,151
1,165
930
759

228
184
212
154
215
243
165
181
135
167
147
137

261
214
348
246
306
322
298
324
232
248
264
204

224
220
274
227
291
273
220
265
242
265
244
190

201
202
259
211
308
348
277
239
257
230
223
167

569
465
878
707
983
902
653
526
533
538
562
525

1958—Jan..

2,066

758

1,308

777

107

247

214

191

530

Kansas
City

Dallas

1956
1957
1956—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

NOTE.—This series for 48 States replaces the old series for 37 States.
The index on p. 342 will be revised in the BULLETIN for April.
CONSTRUCTION CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS
[Figures as reported by the F. W. Dodge Corporation. Value of contracts, in millions of dollars]
Federal Reserve district
All

Month

districts

Boston

New
York

Philadelphia

Cleveland

Richmond

Atlanta Chicago

St.
Louis

Minneapolis

San
Francisco

1956—Nov
Dec

2,377
2,057

113
114

329
329

90
89

182
173

148
127

196
191

348
291

86
76

90
67

184
115

130
141

481
344

1957_j an
Nov
Dec

2,300
2,371
1,982

75
105
68

266
383
213

98
83
80

127
226
204

218
183
113

274
209
211

323
339
316

116
84
68

56
67
68

137
132
129

166
133
178

444
426
336

1958

2,066

85

329

85

154

183

216

236

99

35

100

164

379

Jan

PERMANENT NONFARM DWELLING UNITS STARTED
[Bureau of Labor Statistics estimates. In thousands of units]

Year or month

Total
private
(seasonally
adjusted
annual rate)

Metropolitan
areas

Nonmetropolitan
areas

Government-underwritten1

Private
Total

family

2family

Multifamily

Public
Total

FHA
192
177

1,118

780
699

338
342

1,094

981

31

82

24

463
305

935
933
962
994
995
1,015
1,056
1,012
1,020
1,009

66
87
94
103
100
100
100
92
97
78
262

47
59
64
68
69
63
68
6?
62
53
42

19
29
30
35
31
37
32
30
35
26
20

63
79
91
97
95
94
97
90
88
76

53
68
79
82
80
81
82
77
74
64
n.a.

2
3
3
3
3
3
3
3
3
3
n.a.

8
9
10
13
11
10
12
10
11
9
n.a.

3
g
2
6
5
6
3
2
8
3
v\

19
24
26
27
29
29
30
29
29
24
20

10
12
12
15 •
16
17
19
17
20
17
15

21,030

269

45
43

24
22

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

18
14

14
12

1956
1957
1957

Total

Feb
Mar
Apr

May
June
July
Aug
Sect
Oct
Nov
Dec

1958—Jan
Feb

» Preliminary.
n.a. Not available.
l Represents units started under commitments of FHA or VA to insure or guarantee the mortgage. VA figures after June 1950 and all FHA




VA
271
128
10
11
13
12
13
12
12
12
10
6
5
4
3

figures are based on filed office reports of first compliance inspections;
earlier VA figures are estimates based on loans-closed information.

350

EMPLOYMENT
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
[Bureau of the Census estimates, without seasonal adjustment.

In thousands of persons]

Civilian labor force
Total noninstitutional
population

Year or month

Total
labor
force

EmployedJ
Total
Total

In nonagricultural industries

In
agriculture

Unemployed

Not in the
labor force

1950
1951
1952
1953
1954
1955
1956
1957

110,780
111,924
113,119
115,095
116,220
117,388
118,734
120,445

64 599
65,832
66,410
67 362
67,818
68 896
70 387
70,746

63 099
62 884
62,966
63 815
64,468
65 848
67 530
67,946

59 957
61,005
61,293
62 213
61,238
63 193
64 979
65,011

52 450
53 951
54,488
55 651
54,734
56 464
58'394
58,789

7 507
7,054
6,805
6 562
6,504
6 730
6,585
6,222

3,142
1,879
1,673
1,602
3,230
2,654
2,551
2,936

46,181
46,092
46,710
47,732
48,402
48,492
48,348
49,699

1957_Feb.2
Mar
June
July
Aug
Sept
Oct
Nov
Dec.

119,745
119,899
120,057
120,199
120,383
120,579
120,713
120,842
120,983
121,109
121,221

69,128
69 562
69,771
70,714
72 661
73,051
71 833
71,044
71,299
70,790
70,458

66,311
66 746
66'951
67,893
69 842
70,228
68 994
68 225
68,513
68 061
67,770

63,190
63 865
64,261
65,178
66,504
67,221
66 385
65,674
66,005
64,873
64,396

57,996
58 431
58 506
58,519
58 970
59,449
59 562
59 156
59,168
59 057
59,012

5,195
5 434
5,755
6,659
7,534
7,772
6,823
6,518
6,837
5,817
5,385

3,121
2,882
2,690
2,715
3,337
3,007
2,609
2,552
2,508
3,188
3,374

50,617
50,337
50,286
49,485
47,528
48,880
49,797
49,684
50,318
50,763

1958—Jan....
Feb

121,325
121,432

69,379
69,804

66,732
67,160

62,238
61,988

57,240
57,158

4,998
4,830

4,494
5,173

51,947
51,627

May

1
Includes self-employed, unpaid family, and domestic service workers.
2
Beginning 1957 persons waiting to start new wage and salary jobs and
those on temporary layoff, previously considered as employed (with a job
but not at work), are classified as unemployed, and a small group in school
and waiting to start new jobs (previously included as employed) are classified as not in the labor force.

AT,122

NOTE.—Information relating to persons 14 years of age and over is
obtained through interviews of households on a sample basis. Monthly
data relate to the calendar week that contains the 12th day; annual
data are averages of monthly figures.

EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
[Bureau of Labor Statistics. In thousands of persons]

1950
1951
1952
1953
1954
1955
1956
1957

Total

Manufacturing

44,738
47,347
48 303
49,681
48,431
50,056
51 878
52,545

Year or month

14 967
16 104
16 334
17 238
15,995
16 563
16 905
16,793

52.577
52 547
52,593
52 698
52,773
52.815
52 844
52 662
52.469
52 218
51,980

16 995
16 962
16 965
16 946
16,924
16 880
16 836
16 681
16,604
16 463
16 265

51,756
51,151

15,970
15,637

51,704
51 919
52 270
52.482
52 881
52 605
52.891
53 152
53 043
52.789
53 084

16,945
16 933
16 822
16,762
16 852
16,710
16,955
C
16 905
16,783
16,573
16 316

833

50,987
50,314

15,880
15,586

Mining

Contract
construction

Transportation and
public
utilities

Trade

Finance

Service

Federal
State ard
local
government

2 333
2 603
2 634
2 622
2,593
2 759
2 993
3,026

3 977
4 166
4 185
4 221
4,009
4 062
4 157
4,157

9,645
10,012
10,281
10,527
10,520
10,846
11 292
11,551

1,824
1,892
1,967
2,038
2,122
2,219
2,306
2,343

5,077
5,264
5,411
5,538
5,664
5,916
6,231
6,453

6,026
6,389
6,609
6,645
6,751
6,914
7,178
7,381

3 020
3 062
3,059
3 097
3,108
3 061
3 032
3 028
3,013
2 956
2 923

4 168
4 168
4 160
4 159
4,164
4 168
4 184
4 175
4,148
4 113
4 076

11,519
11 490
11,501
11,542
11,579
11,636
11 669
11,620
11,590
11 567
11,508

2,324
2,322
2,320
2,329
2,336
2,343
2 354
2,361
2,368
2,367
2,361

6,401
6,381
6,400
6,424
6,454
6,492
6,477
6,508
6,482
6,512
6,538

7,317
7 331
7,347
7,358
7,354
7,374
7 439
7,440
7,427
7 415
7,488

2,900
2,702

4 057
4,008

11,625
11,598

2,367
2,368

6,523
6,529

7,507
7,516

837
829
825

2,673
2 756
2 906
3,082
3 232
3 275
3,305
3 285
3,224
3,059
2 850

4 120
4 147
4 153
4,156
4 181
4 199
4,215
4 206
4 159
4,123
4 100

11,225
11 265
11,428
11,411
11 505
11,493
11,499
11,620
11,664
11,840
12,365

2,301
2,310
2,320
2,329
2,359
2,390
2,389
2,361
2,356
2,355
2,349

6,273
6,317
6,432
6,520
6,551
6,524
6,509
6,541
6,547
6,512
6,473

7,334
7,360
7,376
7,387
7,343
7,157
7,157
7,381
7,473
7,498
7,806

807
793

2,610
2,391

3 997
3,962

11,456
11,302

2,343
2,344

6,393
6,398

7,501
7,538

889
916
885
852

111
111
816

840

SEASONALLY ADJUSTED

1957_Feb
Mar

Apr

May

June
July
Aug

Sept
Oct
Nov

Dec
1958_Jan...
Feb

833
831
841
843

854
861
853
849

837
825
821
807

793

WITHOUT SEASONAL ADJUSTMENT

1957_Feb
Mar

Apr
May
June
July
Aug
Sept.
Oct
Nov
Dec

1958—Jan .
Feb

831
833

835
858
857

862
853

c
Corrected.
NOTE.—Data include all full- and part-time employees who worked
during, or received pay for, the pay period ending nearest the 15th of the
month. Proprietors, self-employed persons, domestic servants, unpaid




family workers, and members of the armed forces are excluded. Figures
for January and February 1958 are preliminary. Back data may be
obtained from the Bureau of Labor Statistics.

351

EMPLOYMENT AND EARNINGS
PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES
[Bureau of Labor Statistics. In thousands of persons]
Seasonally adjusted

Without seasonal adjustment

1957

Industry group

1957

1958

1958

Feb.

Stone clay and glass products

..

Fabricated metal products . . .
Machinery except electrical
Transportation equipment
Miscellaneous manufacturing industries
Nondurable goods
Tobacco manufactures
Apparel and other finished textiles
Printing, publishing and allied industries
Products of petroleum and coal
Leather and leather products

Feb.

Dec.

Jan.

Feb.

12,408

12,134

11,828

13,114

12,458

12,050

11,780

7,101
67
593
301
435
999
859
1,116
808
1,342
217
364

6,874
66
588
293
426
955
828
1,090
783
1,276
212
357

6,619
69
575
289
416
899
797
1,059
753
1,208
204
350

7.721
79
589
313
449
1,124
902
1,294
877
1,482
230
381

7,136
67
581
307
435
1,004
868
1,122
824
1,342
219
368

6,860
66
556
297
415
960
836
1,101
791
1,276
213
348

6,628
69
549
295
410
903
805
1,075
761
1,208
204
350

5,450
1,089
88
924
1,058
468
558
545
176
212
332

Lumber and wood products

Feb.

7,706
79
617
307
456
1,118
893
1,275
868
1,482
230
381

Durable goods

Jan.

13,156

Total

Dec.

5,307
1,064
82
871
1,044
464
556
520
171
203
332

5,260
1,062
80
856
1,033
458
557
514
171
199
330

5,209
1,060
81
844
1 020
451
556
508
170
192
327

5,393
987
84
933
1,095
466
555
548
173
213
340

5,322
1,032
87
884
1,060
466
564
523
169
207
332

5,190
977
82
860
1,043
456
557
517
168
201
330

5,152
960
77
852
1,056
449
553
511
167
193
335

NOTE.—Data covering production and related workers only (full- and
part-time) who worked during, or received pay for, the pay period ending
nearest the 15th of the month. Figures for January and February

1958 are preliminary. Back data may be obtained from the Bureau of
Labor Statistics.

HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES
[Bureau of Labor Statistics. In unit indicated]
Average weekly earnings
(dollars per week)
Industry group

1957
Feb.

Average hours worked
(per week)

1958

Dec.

Jan.

Feb.

82.74

81.06

1958

1957
Feb.

Dec.

Average hourly earnings
(dollars per hour)

Jan.

1958

1957

Feb.

Feb.

Dec.

Jan.

Feb.

80.85

40.2

39.4

38.6

38.5

2.05

2.10

2.10

2.10

88.93 87.14 86.52
98.74 100.77 100.70
71.37 69.48 70.20
70.62 67.38 67.61
83.18 82.32 81.27
97.16 95.49 95.23
89.24 87.47 87.02
94.30 92.90 92.36
83.35 82.89 82.47
99.70 95.20 94.82
85.57 84.71 85.14
72.65 72.52 72.52

40.9
42.0
39.6
40.2
40.6
40.3
41.0
41.9
40.6
41.5
41.0
40.3

39.7
40.8
39.0
39.9
39.8
38.1
40.2
40.3
39.5
40.2
39.8
39.7

38.9
41.3
38.6
38.5
39.2
37.3
39.4
39.7
39.1
38.7
39.4
39.2

38.8
41.1
39.0
38.2
38.7
37.2
39.2
39.3
38.9
38.7
39.6
39.2

2.17
2.29
1.73
1.73
2.01
2.46
2.13
2.27
2.05
2.37
2.09
1.81

2.24
2.42
1.83
1.77
2.09
2.55
2.22
2.34
2.11
2.48
2.15
1.83

2.24
2.44
1.80
1.75
2.10
2.56
2.22
2.34
2.12
2.46
2.15
1.85

2.23
2.45
1.80
1.77
2.10
2.56
2.22
2.35
2.12
2.45
2.15
1.85

73.10 74.88 73.54 73.34
77.39 80.18 80.20 79.40
57.37 60.61 61.15 58.81
58.80 58.35 56.25 56.55
Textile-mill products
54.39 52.80 52.50 52.80
84.60 87.15 86.11 85.70
Printing, publishing and allied industries.. 95.48 98.43 95.76 96.27
89.40 93.34 92.62 91.94
Chemicals and allied products
104.45 111.38 110.43 108.40
Rubber products.
..
90.80 92.40 87.71 87.63
Leather and leather products
58.60 57.97 57.88 57.72

39.3
40.1
38.5
39.2
36.5
42.3
38.5
41.2
40.8
40.9
38.3

39.0
40.7
39.1
38.9
35.2
41.9
38.6
41.3
40.8
40.0
37.4

38.3
40.1
39.2
37.5
35.0
41.4
37.7
40.8
40.6
38.3
37.1

38.2
39.5
37.7
37.7
35.2
41.2
37.9
40.5
40.0
38.1
37.0

1.86
1.93
1.49
1.50
1.49
2.00
2.48
2.17
2.56
2.22
1.53

1.92
1.97
1.55
1.50
1.50
2.08
2.55
2.26
2.73
2.31
1.55

1.92
2.00
1.56
1.50
1.50
2.08
2.54
2.27
2.72
2.29
1.56

1.92
2.01
1.56
1.50
1.50
2.08
2.54
2.27
2.71
2.30
1.56

Total

82.41

88.75
96.18
68.51
Lumber and wood products
69.55
81.61
99.14
Primary metal industries
87.33
95.11
83.23
Electrical machinery
98.36
85.69
Instruments and related products
Miscellaneous manufacturing industries.. 72.94
Nondurable goods

NOTE.—Data are for production and related workers. Figures for
January and February 1958 are preliminary. Back data are available
from the Bureau of Labor Statistics.




352

DEPARTMENT STORES
DEPARTMENT STORE SALES AND STOCKS, BY DISTRICTS
[Federal Reserve indexes, based on retail value figures. 1947-49 average = 100]

Federal Reserve district
Year or month

United
States

Minne- Kansas Dallas
City
apolis

San
Francisco

107
107

112
117

115
120

106
112

109
110

121
123

129
132

120
122

113
117
126
128

129
140
144
142

136
149
158
160

122
132
141
141

133
137

123
129

136
145

157
161

137
141

139
136
137
139
139
147
145
126
135
141

131
123
126
126
130
138
130
119
125
132

144
137
141
142
145
147
147
136
139
142

161
151
158
168
170
170
163
152
161
156

146
137
141
148
141
144
141
134
139
139

121

132

126

156

132

123
136
151
165

95
97
109
124

101
105
117
134

90
96
103
124

102
106
118
134

124
126
138
148

109
108
115
133

146

165

126

138

127

139

156

134

140
118
135
150
148
178
272

153
145
161
165
167
193
301

126
104
124
136
127
153
'221

129
114
132
143
138
163
238

116
104
130
139
138
145
'220

137
128
141
149
142
161
246

153
151
158
157
158
183
270

139
125
139
141
135
162
247

92

100

92

^103

123

105

106
121
113

114
137
130

114
135
129

112
137
131

Boston

New
York

Philadelphia

Cleveland

Richmond

Atlanta

Chicago

St.
Louis

107
112

105
109

102
107

107
112

107
114

107
115

111
117

105
110

106
111

114
118

110
114

104
105

113
117

115
119

122
127

127
131

109
114

116
120

118
128
135
136

117
123
126
122

108
113
120
124

116
125
131
132

112
122
128
129

129
140
146
148

135
149
164
169

112
122
128
128

121
132
138
138

132
136

120
129

123
124

130
129

125
131

147
149

158
165

125
129

137
131
135
138
138
144
136
129
133
138

122
117
123
122
125
130
114
116
118
128

124
118
124
125
126
135
122
119
124
128

133
130
133
139
131
138
128
129
128
133

130
122
126
128
132
139
134
121
129
133

152
148
148
152
147
158
144
141
142
148

164
162
172
175
175
179
172
159
166
174

131
125
128
129
131
139
130
121
125
130

116

125

126

125

»147

102
104
114
131

95
97
99
121

99
98
104
116

97
98
115
129

98
101
105
126

104
107
126
149

132

123

120

131

122

131
111
127
139
134
162
241

122
90
102
122
117
144
232

121
92
104
126
126
158
226

130
96
110
134
132
171
236

120
107
123
134
125
159
233

92

100

95

97

112
129
117

106
127
115

110
132
120

108
132
115

131

124

120

129

125

128
136

126
132

117
119

127
135

148
152

141
138

130
137

151
149

140
140

150
152

140
138

152
153
154
153

Oct
Nov

Dec

SALESi
1950
1951
1952
1953
1954
1955
1956
1957

. . .

SEASONALLY ADJUSTED
1957 Jan
Feb
M[ar .
M^ay
June
July
Aug
Sept
Oct
Nov

Dec
1958 Jan
WITHOUT SEASONAL ADJUSTMENT
1957 Jan
Feb

Mar
Apr
May
June
July

Aus
Sept
Oct
Nov
Dec
1958—Jan
STOCKS i

109
129
127

123
145
143

108
125
112

108
130
120

141

155

122

131

123

146

143

140

122
124

138
159

152
170

125
135

124
130

141
152

140
153

135
142

148
154

133
136

175
178

195
203

120
127

138
143

148
149

142
146

164
161

168
174

156
158

138
135

149
149

138
135

178
174

202
200

139
139

149
149

144
144

162
162

173
170

153
151

137
137

150
149

135
136

176
181

202
203

139
140

148
147

145
150

159
161

167
172

155
161

140
138
139
136

137
137
137
138

153
156
154
157

135
136
136
137

182
184
184
180

198
198
204
203

142
146
149
145

151
151
153
149

148
145
141
145

161
159
160
158

175
176
178
176

160
159
159
159

154
155

138
138

138
138

159
156

139
139

181
174

201
208

144
147

151
151

145
148

159
163

173
176

162
163

154

137

138

158

138

175

206

141

151

150

165

179

150

136

138

154

134

171

207

140

141

143

158

169

162
152

v\41

131

137

154

1957_jan

135

126

123

131

121

159

183

127

133

133

146

152

Feb
Mar

142
155

131
142

127
141

143
155

129
139

167
187

198
212

131
141

145
154

138
149

155
165

165
176

138
142
156

Apr
May

159
155

144
143

143
140

159
156

142
139

190
183

213
200

149
147

156
151

153
147

169
163

179
173

164
159

June
July

146
144
150
160

130
125
132
144

129
124
134
145

145
138
151
167

129
125
131
144

170
168
175
187

188
190
199
209

142
143
139
150

141
142
148
158

136
134
142
151

153
152
156
164

164
169
176
184

153
154
160
168

172
174

156
161

155
159

180
182

154
156

198
198

227
233

161
161

169
169

164
170

177
183

193
197

183
182

135

127

127

139

122

156

180

124

127

132

144

157

139

119

122

135

nn

110
131
121

1950
1951
1952
1953
1954
1955
1956
1957
SEASONALLY ADJUSTED
1957—Jan
Feb . ..
Mar
Apr

May
June
July
Aug
Sept

1958—Jan

135

^167

138

n69

WITHOUT SEASONAL ADJUSTMENT

Aus .
Sept

Oct
Nov
Dec
1958—Jan

r
» Preliminary.
Revised.
1
Figures for sales are the average per trading day, while those for stocks
are as of the end of the month or averages of monthly data.




123

127

NOTE.—For description of the series and for monthly indexes beginning
1947, see BULLETIN for December 1957, pp. 1323-52. Figures prior to
1947 may be obtained from the Division of Research and Statistics.

353

DEPARTMENT STORES; FOREIGN TRADE
DEPARTMENT STORE MERCHANDISING DATA
[Based on retail value figures]
Ratios to sales4

Amounts (In millions of dollars)

Sales i
(total
for
month)

Period

Stocksi
(end
of
month)

Outstanding
orders 1
(end of
month)

Receipts 2
(total
for
month)

New
orders 3
(total
for
month)

Stocks

Outstanding
orders

Stocks
plus
outstanding
orders

Receipts

1.0
1.1
1.0
1.0
1.0
1.0
1.0
1.0
1.0

1.0
.2
.3

Annual average:
361
376
391
397
406
409
437
454
458

925
1,012
1,202
1,097
1,163
1,140
1,195
1,286
1,338

373
495
460
435
421
388
446
470
460

358
391
390
397
408
410
444
459
460

358
401
379
401
401
412
449
458
457

2.7
2.8
3.2
2.9
3.0
3.0
2.9
3.0
3.1

1.0
1.1
1.1
1.1

3.8
4.2
4.4
4.1
4.1
4.0
4.0
4.1
4.2

May.
June.
July.
Aug..
Sept.,
Oct..
Nov.,
Dec..

'365
336
394
441
449
409
356
432
438
481
554
839

'1,202
1,252
1,356
1,381
1,353
1,257
1,245
1,300
1,400
1,518
1,562
1,229

'428
461
414
346
355
519
600
569
567
529
427
307

'356
391
498
466
421
313
344
487
538
599
598
506

'445
422
451
398
430
477
425
456
536
561
496
386

3.3
3.7
3.4
3.1
3.0
3.1
3.5
3.0
3.2
3.2
2.8
1.5

1.2
1.4
1.1
0.8
0.8
1.3
1.7
1.3
1.3
1.1
0.8
0.4

4.5
5.1
4.5
3.9
3.8
4.3
5.2
4.3
4.5
4.3
3.6
1.8

0.8
.0
.1
.2
.2
.1
0.6

1958—Jan. P

365

1,207

378

343

414

3.3

1.0

4.3

0.9

1949
1950
1951
1952
1953
1954
1955
1956
1957
Month:
1957—Jan..
Feb..
Mar.,
Apr..

P Preliminary.
' Revised.
1
These figures are not estimates for all department stores in the United
States. They are the actual dollar amounts reported by a group of department stores located in various cities throughout the country. In 1957,
sales by these stores accounted for about 45 per cent of estimated total
department store sales.
2 Derived from the reported figures on sales and stocks.

3
Derived from receipts and reported figures on outstanding orders.
4
The first three ratios are of stocks and /or orders at the end of the
month to sales during the month. The final ratio is based on totals of
sales and receipts for the month.
NOTE.—For description and monthly figures for back years, see BULLETIN for October 1952, pp. 1098-1102.

MERCHANDISE EXPORTS AND IMPORTS
[Bureau of the Census.

In millions of dollars]

Merchandise exports*
Period

Merchandise exports excluding
military-aid shipments2
1957

1958

1956

1957

1,402

8SS

,583
490
I 021
,780
711
,652
,505
536
,437
,600
596
1,543

1,073
1,051
1 102
991
1,095
1,034
1,052
1 055
995
1,121
987
1,059

'1,115
993
1,133
1,119
1,106
r
984
1,146
1,043
1,009
1.148
1 043
1,141

17,333

19,454

12,615

12,978

1956
Jan

Feb
Mar

. .

Apr

May
June
July
Aug
Sept
Oct
Nov
Dec
Jan.—Dec

1957

1958

1956

1,284
1,363
1,583
1,512
1,717
1,697
1,640
,536
,534
[,671
.545
2,007

1,680
1,611
2 151
1,864
1,813
1,786
1,692
1 677
1,540
1,674
1 683
1,639

1,511

1,202
,273
I 479
[,400
I 522
1,492
1,289
378
1,427
1,561
I 425

19,090

20,810

P Preliminary.
'Revised.
1
Exports of domestic and foreign merchandise.
2
Department of Defense shipments of grant-aid military equipment




Merchandise imports 3

<•

1958
^1,108

and supplies under the Mutual Security Program.
3
General imports including imports for immediate consumption plus
entries into bonded warehouses.

354

PRICES
CONSUMER PRICES
[Bureau of Labor Statistics index for city wage-earner and clerical-worker families.

1947-49= 100]

Housing
Transportation

Medical
care

Personal
care

Reading
and
recreation

Other
good
and
services

99.4
98.1
106.9
105.8
104.8
104.3
103.7
105.5

108.5
111.3
118.4
126.2
129.7
128.0
126.4
128.7

104.1
106.0
111.1
117.3
121.3
125.2
128.0
132.6

101.1
101.1
110.5
111.8
112.8
113.4
115.3
120.0

104.1
103.4
106.5
107.0
108.0
107.1
106.6
108.1

103.4
105.2
109.7
115.4
118.2
120.2
120.2
122.0

125.4
125.6
126.2
126.4
127.3
127.6
127.9
128.0
128.3
128.7
129.4
129.6

106.4
106.1
106.8
106.5
106.5
106.6
106.5
106.6
107.3
107.7
107.9
107.6

133.6
134.4
135.1
135.5
135.3
135.3
135.8
135.9
135.9
135.8
140.0
138.9

135.3
135.5
136.4
136.9
137.3
137.9
138.4
138.6
139.0
139.7
140.3
140.8

122.1
122.6
122.9
123.3
123.4
124.2
124.7
124.9
125.1
126.2
126.7
127.0

109.9
110.0
110.5
111.8
111.4
111.8
112.4
112.6
113.3
113.4
114.4
114.6

123.8
124.0
124.2
124.2
124.3
124.6
126.6
126.7
126.7
126.8
126.8
126.8

129.7

106.9

138.7

141.7

127.8

116.6

127.0

All
items

Foods

1929
1933
1941
1945

73.3
55.3
62.9
76.9

65.6
41.6
52.2
68.9

1949
1950
1951
1952
1953
1954
1955
1956

101.8
102.8
111.0
113.5
114.4
114.8
114.5
116.2

100.0
101.2
112.6
114.6
112.8
112.6
110.9
111.7

103.3
106.1
112.4
114.6
117.7
119.1
120.0
121.7

105.0
108.8
113.1
117.9
124.1
128.5
130.3
132.7

102.5
102.7
103.1
104.5
106.6
107.9
110.7
111.8

106.8
110.5
116.4
118.7
123.9
123.5
125.2
130.7

99.6
100.3
111.2
108.5
107.9
106.1
104.1
103.0

100.1
101.2
109.0
111.8
115.3
117.4
119.1
122.9

1957 Jan
Feb
Mar
Apr
May

118.2
118.7
118.9
119.3
119.6
120.2
120.8
121.0
121.1
121.1
121.6
121.6

112.8
113.6
113.2
113.8
114.6
116.2
117.4
117.9
117.0
116.4
116.0
116.1

123.8
124.5
124.9
125.2
125.3
125.5
125.5
125.7
126.3
126.6
126.8
127.0

134.2
134.2
134.4
134.5
134.7
135.0
135.2
135.4
135.7
136.0
136.3
136.7

112.3
112.4
112.4
112.4
112.3
112.3
112.3
113.3
113.7
113.8
114.3
114.3

138.9
139.3
139.2
138.1
135.4
135.3
135.9
135.7
136.8
137.6
138.0
138.3

104.0
105.0
104.9
105.1
104.2
104.6
104.1
103.9
104.8
104.8
104.5
104.9

122.3

118.2

127.1

136.8

115.7

138.4

104.2

Year or month

July
Aue
Sept
Oct
Nov
Dec
1958 Jan

.

Total

Rent

Gas
and
electricity

ApSolid House- House- parel
furfuels
hold
nish- operaand
fuel oil ings
tion
60.3
45.9
55.6
76.3

117.4
83.6
88.4
90.9

NOTE.—Revised index, reflecting, beginning January 1953, the inclusion of new series (i.e. home purchases and used automobiles) and re-

vised weights. Prior to January 1953, indexes are based on the "interim
adjusted" and "old" indexes, converted to the base 1947-49= 100.

WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Bureau of Labor Statistics index.

1947-49= 100]
Other commodities

Year or
month

1949
1950
1951
1952
1953
1954
1955
1956
Jan
Feb
Mar
Apr
May
June
July
Aus
Sept
Oct
Nov
Dec
Jan

All
com- Farm Procmodi- prod- essed
ties
ucts foods Total

Textile
products
and
apparel

Hides,
skins,
and
leather
products

Fuel,
power,
and
lighting
materials

Ma- FurniChem- Rub- Lum- Pulp, Metals chin- ture Non- Toand
icals
ber paper, and
ery
ber
me- bacco
and
and
and
and metal and other tallic mfrs. Misallied prod- wood allied prod- mo- house- minand cellahold erals— bottled neous
prod- ucts prod- prod- ucts
tive
ucts
ucts
prod- dura- struc- bevucts
bles tural erages
ucts

99.2 92.8 95.7 101.3 95.5 96.9 101.9 94.8 98.9 99.2 98.5 104.8
103.1 97.5 99.8 105.0 99.2 104.6 103.0 96.3 120.5 113.9 100.9 110.3
114.8 113.4 111.4 115.9 110.6 120.3 106.7 110.0 148.0 123.9 119.6 122.8
111.6 107.0 108.8 113.2 99.8 97.2 106.6 104.5 134.0 120.3 116.5 123.0
110.1 97.0 104.6 114.0 97.3 98.5 109.5 105.7 125.0 120.2 116.1 126.9
110.3 95 6 105 3 114.5 95.2 94.2 108.1 107.0 126.9 118.0 116.3 128.0
110.7 89.6 101.7 117.0 95.3 93.8 107.9 106.6 143.8 123.6 119.3 136.6
114.3 88.4 101.7 122.2 95.3 99.3 111.2 107.2 145.8 125.4 127.2 148.4
1957

1958

' Revised.




106.6
108.6
119.0
121.5
123.0
124.6
128.4
137.8

103.1
105.3
114.1
112.0
114.2
115.4
115.9
119.1

104.4
106.9
113.6
113.6
118.2
120 9
124.2
129.6

101.6 96.1
102.4 96.6
108.1 104.9
110.6 108.3
115.7 97.8
120 6 102.5
121.6 92.0
122.3 91.0

152.2
151.4
151.0
150.1
150.0
150.6
152.4
153.2
152.2
150.8
150.4
r
150.4

143.9
144.5
144.8
145.0
145.1
145.2
145.8
146.2
146.9
147.7
149.2
r
149.4

121.9
121.9
121.9
121.5
121.6
121.7
122.4
122.6
122.3
122.6
122.7
r
123 5

132.0
132.7
133.2
134.6
135.0
135.1
135.2
135.3
135 2
135.3
135.4
135 7

124.0
124.1
124.1
124.5
124.5
124.7
127.7
127.7
127 7
127.7
127.8
128 0

93.2
92.4
92.0
91.4
89.4
87.3
88.8
90.1
89.4
87.7
86.8
87.2

99.5 115.9 110.6 144.8 116.4 130.9 150.0 149.5 123.4 136.4 128.1

88.2

116.9
117.0
116.9
117.2
117.1
117.4
118.2
118.4
118 0
117.8
118.1
r
118.5
118.7

125.2
125.5
125.4
125.4
125.2
125.2
125.7
126.0
126.0
125.8
125.9
r
126.1

95.8
95.7
95.4
95.3
95.4
95.5
95.4
95.4
95.4
95.1
95.0
94.9

93.6 108.8 126.0

94.6

89.3
88.8
88.8
90.6
89.5
90.9
92.8
93.0
91 0
91.5
91.9
92.6

104.3
103.9
103.7
104.3
104.9
106.1
107.2
106.8
106 5
105.5
106.5
107.4

98.4
98.0
98.4
98.8
99.0
99.9
100.7
100.5
100.3
100.4
100.3
r
99.5

116.3
119.6
119.2
119.5
118.5
117.2
116.4
116.3
116.1
115.8
115.7
r
116.2

108.7
108.8
108.8
109.1
109.1
109.3
109.5
109.8
110.2
110.4
110.3
r
110.6

145.0
143.9
144.3
144.5
144.7
145.1
144.9
146.9
146.5
146.2
144.7
145.7

121.3
120.7
120.1
120.2
119.7
119.7
119.3
118.6
117.8
117.3
116.9
r
116.3

128.6
128.5
128.7
128.6
128.9
128.9
129.5
129.9
130.1
130.9
130.9
131.0

355

PRICES
WHOLESALE PRICES, BY GROUPS OF COMMODITIES—Continued
[Bureau of Labor Statistics index, 1947-49= 100]
1957
Subgroup

1958

Jan.

Nov.

Dec.

100.7
89.5
73.9
102.9
98.1
65.7
86.6
148.8

106.3
80.9
79.3
104.7
99.4
100.1
77.6
144.1

108.3
80 5
'82.6
103 7
'99.0
93.4
78.6
142.5

115.8
84.8
112.5
105.6
113.1
196.3
95.0

117.6 118.3
93 6
95 5
114.5 114.7
103.8 104.6
114.4 114.3
172.9 '173.3
96.6
96.3

92.3
109.1
82.1
122.8
99.7
76.8

89.8
107.4
82.3
119.6
99.6
76.7

52.1
88.2
120.8
97.9

50.3
53.8
91.2
90.8
122.6 '122 0
98.9
'98.6

124.1
159.1
119.9
94.9
124.9

125 8 126 3
161.9 161 9
116.0 '120.7
96.1
96.1
123.5 123.5

123.5
124.1
99.0
Drugs, Pharmaceuticals, cosmetics... 92.6
58.7
Fats and oils, inedible
110.2
Mixed fertilizers
105.9
104.5
Other chemicals and products

123.6 123.9
128 1 '128 4
101.6 101 7
93.4
93.5
65.2
65.4
112.3 112.1
107.7 107 8
106.6 '106.9

Flat glass
123.9
Concrete ingredients
128 4
Concrete products
103.6
Structural clay products
93.5
Gypsum products
63 0
Prepared asphalt roofing .
112.2
Other nonmetallic minerals
110 5
106.9 Tobacco Manufmctures and
Beverages:

145.4
148.8
140.0

131.6
153.5
142.3

135.7
153 5
142.7

133.7
152 0
143.1

122.6
128.7
97.1

117.1
128.0
96.4

'116.4
127.7
95.6

116.6
127.7
95.6

118.0
77.3
139.2

121.2
88.5
143.3

121.2
88.5
143.2

121 2
83.5
143.2

Farm Products:
Grains
Livestock and poultry
Plant and animal fibers . . .
Fluid milk
Eggs
.
Other farm products
Processed Foods:
Cereal and bakery products
Meats, poultry, and fish
Dairy products and ice cream
Canned, frozen fruits, and vegetables.
Sugar and confectionery
Packaged beverage materials
Other processed foods

Cotton products
Wool products
Synthetic textiles
Silk products
Apparel
Other textile products

Other leather products
Fuel, Power, and Lighting Materials:
Coal
Coke
Gas
Electricity
Chemicals and Allied Products:
Industrial chemicals
Prepared paint

Rubber and products:
Crude rubber
Other rubber products

90.1
105.2
81.2
119.4
99 4
74.7

... .

Pulp, Paper, and Allied Products:
Woodpulp
Wastepaper
Paper
' Revised.




136.6 136.6
127.0 '127.2
141 7 141 7

136.4
127.2
141.7

164.3
148.7
147.5
161.5
133.4
122 3
133.7

166.5 166.5
130.8 130.6
153.1 153.1
167.4 '168.1
128.5 128.5
122 1 121 5
134.6 134.6

166.9
128.6
152.7
168.4
127.6
121.8
134.5

141.6

147.0

147.0

146.4

131.8

137.4

137.9

137.9

156.2
163.4

165.2 '165.3
171.3 171.3

165.4
171.3

155.5
142.5

160.8 '160.8
148.3 148.5

160.7
149.0

146.0
134.3

150.9 150.8
138.7 '139.1

151.2
139.1

122.0
146.9
135.1
106 5
91.1
69.9
146.8

122.8
153.8
132.5
105 1
93.4
71.4
149.5

122.8
'154.1
'132.6
'105 4
93.3
71.4
'153.1

122.8
154.1
132.3
105.1
93.3
70.7
153.9

135.7
134.6
125.6
150.6
127.1
111.2
124.3

135.7
136.9
126 7
155.1
127.1
124.6
128.5

135.7
136.9
127.2
155.1
127.1
124.6
131.1

135.7
138.9
127.5
155.3
127.1
124.6
131.1

124.0
104.2
126.0
119.0
148.7

134.8
105.1
144.3
119.8
149.3

134.8
105.1
144.3
120.3
149.3

134.8
105.9
144.3
120.3
149.3

Toys, sporting goods, small a r m s . . . . 117.5
74.4
96.7
Notions and accessories
Jewelry, watches, photo equipment... 107.5
126.1
Other miscellaneous

117.9
61.4
97.8
107.7
130.9

118.0
62.1
'98.5
107.7
130.9

117.9
64.1
97.5
107.1
131.6

Construction machinery and equipment
Metal working machinery
General purpose machinery and
equipment
Miscellaneous machinery
Electrical machinery and equip-

Motor vehicles
50.2
90.7 Furniture and Other Household Dura122.0
bles:
98.8
Household furniture
Commercial furniture
Floor covering
126 0
Household aDoliances
161 9
Radio . . . ^
120.7
Television
96.1
Other household durable goods
122.9
Nonmetallic Minerals—Structural:

Lumber and Wood Products:
Lumber
Millwork
Plywood

136.2
125.6
141 1

Agricultural machinery and equip90.2
105.8
82.1
119.5
99 6
75.8

Hides, Skins, and Leather Products:
Leather

Nov.

Pulp, Paper, and Allied Products
(Cont.):
121.6
79 1
Paperboard..
.
.
..
86.5
Converted paper and paperboard....
103 0
Building paper and board
97.9
73.9 Metals and Metal Products:
79.5
Iron and steel
143.6
Nonferrous metals
Metal containers
Hardware
118.0
100 5
Heating equipment
114.1
Fabricated structural metal products.
105.0
Fabricated
nonstructural
metal
products
114.2
173.3
95.4 Machinery and Motive Products:

Cigarettes
Cigars
Other tobacco products . . .
Alcoholic beverages
Nonalcoholic beverages

Dec.

Jan.

Jan.

Jan.

Textile Products and Apparel:

1958

1957
Subgroup

Bottled

Miscellaneous:

356

NATIONAL PRODUCT AND INCOME
RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING
[Department of Commerce estimates. In billions of dollars]
Seasonally adjusted annual rates
by quarters

Annual totals
Item

1956
1929

1933

1941

1950

1953

1954

1955

1956

4
Gross national oroduct •

104.4

•• ••

1957

1957
1

2

3

4

56.0 125.8 285.1 363.2 361.2 391.7 414.7 434.4 426.0 429.9 435.5 440.0 432.6

8.6

7.2

9.0

20.5

26.5

28.9

31.6

34.3

37.1

35.3

36.1

36.6

37.4

38.2

7.0
.6
.3

7.1
.7
.9

11.3
.5
.4

30.2
1.4
2.6

30.1
1.3
1.7

32.9
1.3
2.1

35.0
1.3
1.6

Plus: Subsidies less current surplus of government enterprises

23.7
.8
.2

36.9
1.3
n.a.

36.1
1.3
1.6

36.4
1.3
1.8

36.6
1.3
4.1

37.1
1 3
3.4

37.4
1 3
n.a.

-.1

.0

.1

.2

-.4

-.2

.2

1.1

1.3

1.6

1.4

1.6

1.7

1 4

Eauals* National income

87.8

n.a. 353.3 355.6 358.5 362.6

n.a.

Less * Capital consumption allowances
Indirect business tax and related liabilities
Business transfer payments

Less: Corporate profits and inventory valua-

40.2 104.7 240.0 302.1 299.0 324.1 343.6

10.1 - 2 . 0
.2
.3

Contributions for social insurance
Excess of wage accruals over disburse-

14.5
2.8

35.1
6.9

36.0
8.7

33.1
9.7

40.7
11.0

40.4
12.4

n.a.
14.4

42.4
12.8

41.2
14.2

40.7
14.3

40.9
14.6

n a.
14.5

.0
2.6
1.3
4.5
.5

.0
14.3
4.7
9.2
.8

-.1
12.9
5.0
9.3
1.4

.0
15.0
5.2
9.9
1.3

.0
16.1
5.2
11.0
1.3

.0
17.2
5.7
11.9
1.3

.0
19.9
6.0
12.1
1.3

.0
17.7
5.9
11.5
1.3

.0
18.4
6.0
12.4
1.3

.0
20.0
6.0
12.5
1.3

.0
20.0
6.0
12.6
1 3

.0
21.2
6.1
11.7
1 3

.0
.9
1.0
5.8
.6

.0
1.5
1.2
2.1
.7

85.8

47.2

2.6

1.5

3.3

20.9

35.8

33.0

35.8

39.7

42.8

40.5

42.2

42.9

43.6

43.4

1.3
1.4

.5
1.0

2.0
1.3

18.2
2.7

32.4
3.4

29.2
3.8

31.5
4.2

35.1
4.6

37.8
5.0

35.8
4.7

37.4
4.9

38.0
4.9

38.6
5.0

38.3
5.1

Equals* Disposable personal income

83.1

45.7

93.0 206.1 250.2 254.5 270.2 287.2 300.6 294.0 296.1 300.4 303.3 302.1

Less: Personal consumption expenditures....

79.0

46.4

81.9 194.0 230.5 236.6 254.4 267.2 280.4 272.3 276.7 278.9 283.6 282.4

4.2

-.6

11.1

Plus * Government transfer payments
Net interest paid by government
Business transfer payments
Eauals * Personal income
Less: Personal tax and related payments
Federal
State and local

Eauals • Personal savins

96.3 227.1 286.0 287.4 305.9 326.9 343.4 334.5 338.3 343.2 346.9 345.5

12.1

19.7

17.9

15.8

20.0

20.2

21.7 1 9 . 5

'21.4 1 9 . 7

19.8

NATIONAL INCOME, BY DISTRIBUTIVE SHARES
[Department of Commerce estimates. In billions of dollars]
Seasonally adjusted annual rates
by quarters

Annual totals
Item

1956
1929

1933

1941

1950

1953

1954

1955

1956

National income

87.8

40.2 104.7 240.0 302.1 299.0 324.1 343.6

Compensation of employees
Wages and salaries*
Private
Military
Government civilian
Supplements to wages and salaries

51.1
50.4
45.5
.3
4.6
.7

29.5
29.0
23.9
.3
4.9
.5

Proprietors' and rental income2
Business and professional
Farm
Rental income of persons

20.2
8.8
6.0
5.4

7.6
3.2
2.4
2.0

Corporate profits and inventory valuation
adjustment
Corporate profits before tax
Corporate profits tax liability
Corporate profits after tax
Inventory valuation adjustment

10.1 - 2 . 0 14.5 35.1 36.0
9.6
.2 17.0 40.0 37.0
1.4
.5
7.6 17.8 20.3
9.4 22.1 16.7
8.3
4
-2.5 -4.9 -1.0
.5

Net interest

6.4

5.0

r
n. a. Not available.
Revised.
1
Includes employee contributions to social insurance funds.




n.a.
64.8 154.3 208.1 206.8 223.1 241.4 254.4
62.1 146.5 197.3 195.5 210.3 227.2 238.8
51.9 124.3 163.5 161.2 174.4 189.4 199.0
1.9
5.0 10.3 10.0
9.8
9.7
9.7
8.3 17.2 23.5 24.4 26.
28.2 30.1
7.8 10.8 11.3 12.7 14.1 15.6
2.7

20.9
10.9
6.5
3.5

4.5

44.6
22.9
13.3
8.5

5.9

49.3
25.9
13.3
10.2

8.7

49.1
25.9
12.7
10.6

49.4
27.3
11.9
10.2

49.9
28.0
11.6
10.3

1957

1957

51.2
28.7
12.1
10.4

353.3 355.6 358.5 362.6
n.a.
247.9 251.1 254.0 257.0 255.3
233.3 235.9 238.6 241.3 239.5
194.7 196.8 199. 200.9 199.1
9.7
9.6
9.7
9.8
9.5
28.9 29.4 29.7 30.6 30.8
14.6 15.3 15.4 15.7 15.8
50.7
28.3
12.0
10.4

50.9
28.4
12.0
10.4

51.2
28.7
12.1
10.4

33.1 40.7 40.4
n.a. 42.4 41.2 40.7
33.5 42.5 43.0
n.a. 45.6 43.9 42.0
17.4 21.5 22.0
n.a. 23.3 22.4 21.4
16.0 21.0 21.0
n.a. 22.3 21.5 20.5
- . 3 -1.7 -2.6 -1.5 -3.2 -2.7 -1.3
9.8

10.9

11.9

12.8

12.3

12.5

12.7

2 Includes noncorporate inventory valuation adjustment.

51.7
29.1
12.2
10.4

51.3
28.6
12.2
10.4

40.9
n.a.
41.8
n.a.
21.3
n.a.
20.4
n.a.
- . 9 -1.2
13.0

13.3

357

NATIONAL PRODUCT AND INCOME
GROSS NATIONAL PRODUCT OR EXPENDITURE
[Department of Commerce estimates. In billions of dollars]

Seasonally adjusted annual rates
by quarters

Annual totals
Item

1956
1929

Gross national product

1933

104.4

1941

1950

1953

79.0
9.2
37.7
32.1

Gross private domestic investment
New construction1
Residential, nonfarm
Other
Producers' durable equipment
Change in business inventories
Nonfarm only

16.2
1.4
8.7
1.4
.5
3.6
5.1
1.0
5.9
1.6
1.7 - 1 . 6
1.8 - 1 . 4

18.1
6.6
3.5
3.1
6.9
4.5
4.0

51.2
22.7
12.6
10.1
21.1
7.4

.8

.2

1.1

-2.2

-2.0

8.5
1.3
1.3
.0
7.2

8.0
2.0

24.8
16.9
13.8
3.2
.0
7.8

42.0
22.1
18.5
3.9

84.4
59.5
51.5
8.4

Government purchases of goods
services
Federal
National security
Other
Less: Government sales 2
State and local

1955

1956

1957

1957

56.0 125.8 285.1 363.2 361.2 391.7 414.7 434.4 426.0 429.9 435.5 440.0 432.6

Personal consumption expenditures
Durable goods
Nondurable goods
Services

Net foreign investment

1954

46.4
3.5
22.3
20.7

and

2.0
.0
6.0

81.9 194.0 230.5 236.6 254.4 267.2 280.4 272.3 276.7 278.9 283.6 282.4
9.7 28.6 29.8 29.4 35.6 33.9 35.1 34.8 35.9 35.0 35.0 34.4
43.2 100.4 119.1 120.6 126.0 133.3 139.9 135.3 137.3 139.1 142.5 140.8
29.0 65.0 81.7 86.6 92.8 99.9 105.4 102.2 103.4 104.9 106.1 107.2

6.4

i Includes expenditures for crude petroleum and natural gas drilling.

50.3 48.4
25.8 27.8
11.9 13.5
13.8 14.3
24.3 22.5
.3 - 1 . 9
.9 - 2 . 4

2i

28.1
4.6
5.0

18.0

64.4
33.2
14.2
19.0
30.4
.8
.2

68.5
33.4
15.1
18.4
29.9
5.1
5.7

63.6
32.8
14.4
18.5
30.7
.0
-.3

66.2
32.7
13.9
18.9
30.5
2.9
2.2

-.4

1.4

3.2

2.4

4.1

3.5

3.2

2.0

77.1
46.8
41.3
5.9
.4
30.3

80.2
47.2
42.4
5.2
.4
33.0

86.4
50.4
45.7
5.2
.4
36.0

82.8
49.0
44.2
5.
.4
33.9

85.6
50.3
45.5
5.2
.4
35.3

86.9
51.1
46.3
5.2
.4
35.8

86.7
50.6
45.8
5.2
.4
36.1

87.0
49.7
45.0
5.0
.4
37.3

60.6
32.7
16.6
16.1
23.7
4.2
4.0

65.9
33.3
15.3

-.4
76.6
48.9
43.1
6.2
.4
27.7

66.5 61.3
33.0 34.0
14.0 14.5
19.0 19.5
30.5 30.0
3.0 - 2 . 7
2.3 - 3 . 4

2 Consists of sales abroad and domestic sales of surplus consumption
goods and materials.

PERSONAL INCOME
[Department of Commerce estimates. In billions of dollars]
Wage and salary disbursements
Personal
income

Total

1929
1933
1941

85.8
47.2
96.3

50.4
29 0
62.1

21.5
9 8
27.5

1952
1953
1954
1955
1956
1957

271.8
286.0
287.4
305.9
326.9
343.4

184.9
197 4
195 5
210.3
227.2
238.8

1957_Feb
Mar
Apr.
May
June
July
Aug
Sent
Oct
Nov
Dec

338.5
340.2
341.1
343.2
345.1
346.3
347.3
347.2
346.8
346.2
343.6
343.6
341.8

Year or month 1

1958—Jan
Feb»
9
1
2

...

,
.

Commodity Distributive
produc- indusing intries
dustries

Transferpayments 4

Less
personal
contributions
for
social
insurance 5

Nonagricultural
income*

Service
industries

Government

15.6
8 8
16.3

8.4
5.2
8.1

4.9
5.1
10.2

.6
.4
.7

20.2
7.6
20.9

13.2
8.3
10.3

1.5
2.1
3.1

.1
.2
.8

77.7
43.6
88.0

80.4
87 7
83 6
90.9
98.3
102.0

48.7
51 3
51.9
55.4
60.1
63.7

23.0
24 5
25.8
28.2
31.1
33.3

32.9
33.9
34.3
35.9
37.9
39.8

5.3
6.0
6.2
6.9
7.5
7.9

50.8
49.3
49.1
49.4
49.9
51.2

21.3
23.0
24.9
27.1
29.5
31.0

13.2
14.3
16.2
17.4
18.5
21.2

3.8
3.9
4.6
5.2
5.7
6.8

253.1
269.2
271.3
290.6
311.7
327.5

235.9
237.2
237 1
238.3
240 1
240.9
241.7
241.5
240.1
239 5
238.8

102.0
102.3
102 4
102.4
103 3
103.0
102.8
102.2
101.3
100 9
99.8

62.4
63 0
62 7
63.4
63 8
64.5
64.7
64.8
64.3
64 2
64.4

32.4
32.6
32 9
33.0
33 2
33.4
33.7
33.9
34.0
34 1
34.2

39.1
39.3
39 1
39.5
39.8
40.0
40.5
40.6
40.5
40.3
40.4

7.8
7.8
7 8
7.8
7.9
7.9
8.0
8.0
8.0
8.0
8.0

51.0
51.1
51.1
51.1
51.2
51.7
51.7
51.7
51.7
51.2
50.9

30.8
30.9
31.0
31.2
31.2
31.4
31.6
31.6
31.7
31.7
29.7

19.7
20.0
20.8
21.6
21.5
21.3
21.2
21.2
22.1
22.6
23.0

6.7
6.8
6.7
6.8
6.8
6.9
6.9
6.8
6.8
6.8
6.8

322.7
324.5
325.3
327.5
329.3
330.5
331.3
331.3
331.0
330.3
327.6

237.0
234.8

97.6
95.2

64.8
64.7

34.2
34.4

40.4
40.5

7.9
7.8

50.5
50.7

31.7
31.8

23.3
23.5

6.8
6.8

327.6
325.6

Preliminary.
Monthly data are seasonally adjusted totals at annual rates.
Represents compensation for injuries, employer contributions to
private pension and welfare funds, and other payments.
3 Represents business and professional income, farm income, and
rental income of unincorporated enterprise; also a noncorporate inventory
valuation adjustment.
4
Represents government social insurance benefits, direct relief, mustering-out pay, veterans' readjustment allowances and other payments, as




Other
labor
income2

Dividends
Proprietors' and
perand
sonal
rental
income3 interest
income

well as consumer bad debts and other business transfers.
5 Prior to 1952 includes employee contributions only; beginning January
1952, includes also contributions to the old-age and survivors' insurance
program of the self-employed to whom coverage was extended under the
Social Security Act Amendments of 1950. Personal contributions are
not included in personal income.
6 Represents personal income exclusive of net income of unincorporated
farm enterprise, farm wages, agricultural net interest, and net dividends
paid by agricultural corporations.

* International *

International capital transactions of the United States.

360

Gold production. .

364

Net gold purchases and gold stock of the United States. .

365

Reported gold reserves of central banks and governments. .

366

Estimated foreign gold reserves and dollar holdings. .

367

International Bank and Monetary Fund. .

368

Central banks .

368

Money rates in foreign countries. .

373

Foreign exchange rates. .

374

Index

385




Tables on the following pages include the principal available statistics of current significance
relating to international capital transactions of
the United States, foreign gold reserves and dollar holdings, and foreign central banks. Figures
on international capital transactions of the
United States are collected by the Federal Reserve Banks from banks, bankers, brokers, and

dealers in the United States in accordance with
the Treasury Regulation of November 12, 1934.
Other data are compiled largely from regularly
published sources such as central bank statements and official statistical bulletins. Back figures for 1941 and prior years, together with descriptive text, may be obtained from the Board's
publication, Banking and Monetary Statistics.

359

360

INT'L CAPITAL TRANSACTIONS OF THE U. S.

TABLE 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES 1
[Amounts outstanding, in millions of dollars]

In-

Total foreign
countries

Germany,
Fed.
Rep.

Switz- United
erKingland
dom

ternational
institutions 2

Official

1954_Dec. 3 1 . . . .
1955—Dec. 3 1 . . . .
1956—Dec. 3 1 . . . .

1,770
1,881
1,452

11,149
11,720
13,487

6,770
6,953
8,045

1,081
626

1,373
1,454
1,835

579
785
930

672
757
836

1957—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31....
28....
31....
30
31....
30
31....
31....
30....
31*...
30*...
31*...

1,809
1,681
1,558
1,358
1,700
1,573
1,545
1,635
1,512
1,517
1,538
1,517

'13,208
13,090
13,002
'13,093
13,121
'13,282
'13,265
13,267
13,336
13,747
13,610
13,611

'7,760
7,551
'7,549
47,808
7,810
'7,941
'7,808
7,627
7,644
7,910
7,795
7,893

538
490
423
420
367
403
514
450
411
394
352
355

1,790
1,764
1,764
1,728
1,732
1,690
1,559
1,577
1,664
1,573
1,567
1,557

905
885
886
909
937
959
979

800
775
774
742
775

1,009
1,029
1,057
1,032
1,079

778
769
802
857
865
965

1958—Jan. 3 1 * . . .

1,619

13,684

7,998

331

1,520 1,083

940

Date

France
Official

and

private

Italy

Other
Europe

Total
Europe

Latin
Canada America

Asia

All
other

1,642
,519
1,627

5,621
6,147
6,865

1,536
1,032
1,516

1,906
2,000
2,346

1,821
2,181
2,415

265
360
346

1,161
1,200
1,275

1,676
1,735
,754
,804
1,764
1,793
1,725
1,754
1,855
1,946
1,964
1,910

6,575
6,518
6,530
6,507
6,502
'6,623
6,563
6,502
6,569
6,987
6,980
7,141

1,531
1,564
1,496
1,521
1,619
1,591
1,659
1,724
1,655
1,739
1,735
1,623

'2,383
2,309
2,345
'2,509
'2,549
'2,687
'2,673
2,683
2,723
2,671
2,596
2,556

2,382
2,323
2,243
2,160
2,053
1,990
1,986
1,981
2,015
1,975
1,937
1,940

337
375
388
396
398
391
384
377
373
374
362
351

1,330

2,036

7,240

1,597

2,516

1,950

382

of

715

'809

640
550

1,012
867
869
929
903
926
969

1,008

944
807

Table la. Other Europe
Other
Europe

Austria

Belgium

Denmark

1954 Dec 31
1955—Dec. 3 1 . .
1956—Dec. 31

J.642
1,519
1,627

273
261

100
108

71
60

1957_jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.

1,676
1,735
1,754
,804
1,764
1,793
1,725
1,754
1,855
,946
1,964
.910

Date

31
28 .
31
30
31
30
31
31
30
31*
30*
31*

2,036

1958—Jan 31*

Neth- NorFinerland Greece lands way

Portugal

Rumania Spain

Sweden

Tur- Yugo- All
key slavia other

41
49

113
176

249
164

103
82

91
132

8
8

71
104

141
153

8
9

9
13

117

65

53

177

134

67

137

1

43

217

20

17

294
297

125
135

64
76

54
61

181
184

69
67

138
134

1
1

141

76

59

178

76

123

73
75
87
85
87
94
97
95
93

117
120
120
115
116
124
129
127
142

1
1
1
1
1
1
1
1
1

28
25
25
25
24
24
30
26
25

230
229
228
245
253
268
278
272
273
255
265
259

16
22
14
20
12
14
12
16
12
19
16
18

14
17

296

1

42
40

11
12
11
9
11
12
9
11
11

446
439
449
351
362
371
429
418
348

117

137

1

22

264

16

7

403

Panama,
Republic of

Peru

El
Salvador

Uruguay

73

296

298
298
302
315
328
337
345
347
349

142
120
119
120
123
132
137
131
130

71
65
61
97
101
102
97
100
112

60
59
59
61
55
62
68
66
65

181
175
166
156
143
139
144
146
154

117
122
120
110
111
110
98
115
172
186
215
203

372

113

126

64

154

240

32

14

363
201

281
332
350
396

Table lb. Latin America

Latin
BoAmer- Argen- livia
tina
ica

Date

Brazil Chile

Colombia

Cuba

NetherDolands
minican Guate- Mex- West
Indies
Reico
mala
and
pubSurilic

Other
Vene- Latin
zuela America

nam

1954_Dec. 31
1955—Dec. 31
1956—Dec. 31 . .
1957_jan. 3 1 . .
Feb. 28
Mar 31
Apr. 30
May 31
June 30
July 31
Aug 31
Sept. 3 0 . .
Oct. 31*
Nov. 30*
Dec. 31*
1958—Jan. 31*
Preliminary.




1 906
2,000
2,346

160
138
146

29
26
29

120
143
225

70
95
91

222
131
153

237
253
211

60
65
68

35
45
64

329
414
433

49
47
69

74
86
109

83
92
84

30
24
25

2,383
2,309
2 345
-2,509
r
r 2,549
2 687
'2,673
2 683
2'723
2,671
2,596
2,556

140
142
138
211
185
164
142
135
147
160
151
137

27
27
25
26
25
24
27
28
28
24
24
26

241
240
232
216
184
143
127
133
133
145
149
132

86
86
91
86
79
88
73
78
77
76
76
75

186
175
193
203
206
205
213
195
186
202
175
153

217
220
218
226
241
257
274
285
280
235
235
235

67
76
78
85
82
87
94
67
59
57
58
54

66
69
74
77
72
70
67
65
60
60
62
65

All
413
409
393
375
339
352
393
371
367
360
375

'67
'68
66
'68
'68
'64
74
71
75
75
72
73

109
112
117
116
118
135
129
132
129
140
133
136

81
82
82
75
77
75
73
72
61
64
62
60

37
39
41
39
43
50
46
39
34
26
22
27

76
76
74
70
66
65
60
56
60
55
55
55

'788

2,516

138

23

120

78

148

240

51

68

386

71

123

56

32

72

r

' Revised.

For other notes see following page.

90
65

194
265
455

124
112
111

448
363
374
479
588
781
798
896
858
835
829

114
120
133
139
139
138
133
136
129
126
127
124

773

136

361

INT'L CAPITAL TRANSACTIONS OF THE U. S.

TABLE 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES i— Continued!
[Amounts outstanding, in millions of dollars]
Table lc.

Asia and All Other
All other

Asia
Korea, PhilReTaiIsrael Japan pub- ipwan
lic pines
of

Date
Total

Hong India
Kong

Indo- Iran
nesia

1954—Dec. 31
1955—Dec. 31
1956—Dec. 31

1,821
2,181
2,415

61
55

87
73
76

100
174
186

31
37
20

41
53

721
893

66

45

1,017

96
88
99

257
252
272

1957_jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

2,382
2,323
2,243
2,160
2,053
1,990
1,986
1,981
2,015
1,975
1,937
1,940

64
61
56
58
56
59
65
66
72
72
71
70

75
76
77
77
78
76
79
78
82
88
89
82

179
166
145
129
126
128
139
167
179
190
187
151

21
31
40
33
29
35
31
30
49
43
42
55

37
38
35
30
40
36
46
41
53
47
46
52

994
937
875
835
728
626
605
586
570
564
555
580

101
102
104
106
106
107
106
106
106
110
112
117

269
254
244
227
218
217
206
217
215
195
174
175

1,950

65

78

138

55

49

594

118

184

31
28
31
30
31
30
31
31
30
31?
30*\...
31?....

1958—Jan. 31P

Table Id.

Union
Belof
Thai- Other Total Aus- gian Egypt
South Other
tralia Congo
land
Africa

34
39
61

123
138
148

270
380
425

265
360
346

48
75
84

44
42
44

47
72
50

33
53
53

94
119
114

63
68
75
75
79
79
78
76
83
85
86

158
161
167
165
166
167
167
170
163
162
159
157

421
432
433
425
432
461
463
443
450
420
417
416

337
375
388
396
398
391
384
377
373
374
362
351

64
68
80
85
88
75
80
78
81
85
84
85

42
44
42
42
41
40
42
41
39
41
42
39

52
69
60
61
59
58
57
53
54
50
45
40

58
63
60
56
58
60
51
49
47
45
39
38

121
132
147
152
153
158
153
156
152
153
151
149

87

156

426

382

82

41

42

59

157

65

Supplementary Areas and Countries5
End of year

End of year
Area or country

Area or country
1953

Other Asia:
Afghanistan
Bahrein Islands

.4
4

n.a.
4

6
7

7
7

2
5

n.a.
1 9
1.0
7.5
14.1
1.3
4
4.0
3.0
2 2
2 5
2.0

.

.2
6
1.2
1 9
1.0
8.9
14.3
1.0
5
4.5
5.3
2 1
2 2
1.8

1.3
1 8
1.0
4.8
13.7
1.0
3
3.1
5.6
2 5
1 4
.7

1.2
na
.8
3.1
9.1
.6
4
13.2
4.3
3 3
1 4
.8

18.0
13.4
17.7
.6
9 3
18.7
16 0

19.0
15.3
21.2
.4
12 7
17.3
10 3

16.6
17.6
14.9
.6
12 1
9.7
12.8

24.1
14.6
18.0
1.0
8 9
10.2
11 8

6.0

3.6

3.6

2.7
.6

5.1
.6

4.1
.5

Other Asia (Cont.):
British dependencies
Burma
Cambodia
Ceylon
China Mainland 6 .
Iraq
Jordan
..
Kuwait
Laos
..
Lebanon
Pakistan
Portuguese dependencies
Ryukyu Islands
Saudi Arabia
Syria
Viet-Nam

All other:
British dependencies
Ethiopia and Eritrea
French dependencies
Liberia
Libya
M^orocco
New Zealand..
..
Portuguese dependencies
4.0
Spanish dependencies
Sudan
Tangier
5.3
Tunisia
n.a.

^Preliminary.
n.a. Not available.
1
Short-term liabilities reported in these statistics represent principally
deposits and U. S. Govt. obligations maturing in not more than one year
from their date of issue, held by banking institutions in the United States;
small amounts of bankers' acceptances and commercial paper and of
liabilities payable in foreign currencies are also included.
2
Includes International Bank for Reconstruction and Development,
International Monetary Fund, and United Nations and other international
organizations. Excludes Bank for International Settlements, reported
under Other Europe.
3
Represents funds held with banks and bankers in the United States
(and in accounts with the U.S. Treasury) by foreign central banks and by
foreign central governments and their agencies (including official purchasing missions, trade and shipping missions, diplomatic and consular
establishments, etc.).




1953

1956

6
6

Other Latin America:
British dependencies
Costa Rica
Ecuador
French West Indies and French Guiana...
Haiti
Honduras .
Nicaragua
Paraguay

1955

.2
4

Other Europe:
Albania
British dependencies
Bulgaria.
Czechoslovakia6
Eastern Germany
Estonia
Hungary
Iceland.. . .
Ireland, Republic of
Latvia...
Lithuania
Luxembourg
Monaco
Poland 6 . .
Trieste
U. S. S. R. 6

1954

...

..

1954

1955

1956

9.1
23.0
na
17 1
36.4
13.8
.9
10.1
n.a.
23.9
9 7
5.3
n.a.
18 5
20 5
n.a.

9.8
29.7

18.8
35.7
10.0
.8
10.7
.1
16.5
3.8
1.8
26.9
61 5
21.5
8.1

9.8
19.1
13 1
32.9
36.2
14.7
1.2
3.5
23.1
18.0
5.7
2.0
34.0
79 5
13.1
62.3

8.8
7.0
17 2
41.2
35.5
16.9
2.0
5.3
n.a.
22.3
20.2
2.7
n.a.
n a.
17.1
50.1

1.6
9.1
5.7
11.8
3.0
15.9
2.1
5.0
.2
n.a.
36.1
.6

1.4
18.0
8.7
5.6
1.7
7.6
2.3
8.3
.5
n.a.
35.7
.4

2.4
23.7
8.0
13.1
9.9
14.8
1.9
5.3
.7
n.a.
33.5
.7

3.8
24.2
10.5
23.7
3.7
13.6
2.2
2.8
.3

2

.4

22.4
.5

4
Beginning Apr. 30, data include certain accounts previously classified
as "private."
5 These data are based on reports by banks in the Second (New York)
Federal Reserve District and include funds held in an account with the
U. S. Treasury. They represent a partial breakdown of the amounts,
shown in the "other" categories in tables la-lc.
6
Based on reports by banks in all Federal Reserve districts.
NOTE.—Statistics on international capital transactions of the United
States are based on reports by banks, bankers, brokers, and dealers.
Beginning with the BULLETIN for June 1954 (as explained on p. 591 of
that issue), tables reflect changes in reporting forms and instructions made
as of Mar. 31, 1954, as well as changes in content, selection, and arrangement of material published. For discontinued tables and data reported!
under previous instructions, see BULLETIN for May 1954, pp. 540-45.

362

INT'L CAPITAL TRANSACTIONS OF THE U. S.

TABLE 2. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES 1
[Amounts outstanding, in millions of dollars]
Ger-

Date

Total

France many,
Fed.

Switz- United
erKing- Other Total
land
dom Europe Europe

Italy

Rep. of

31
28
31
30
31
30
31
31
30
31*>
30^
31^

Asia

All
other

14
12
18

70
88
157

20
30
43

16
26
29

173
109
104

109
158
216

402
423
568

76
144
157

728
706
840

143
233
337

37
43
43

2,038
2,060
2,150
2,141
2,174
. . . . 2,202
2,135
2,160
2 161
2,254
2,204
2,244

23
18
26
60
72
82
96
113
113

168
176
177
177
174
159
150
149
150

50
55
59
58
61
60
59
55
54

30
33
26
27
27
28
31
33
32

109
127
160
151
176
159
123
115
110

213
211
219
208
188
197
189
192
209

593
621
667
680
699
686
646
657
668

171
157
161
108
114
125
125
120
111

867
861
898
919
889
894
896
935
941

360
375
375
392
426
451
421
396
389

48
46
49
41
46
46
46
52
52

. . . .

. .
....

106

139

54

36

124

203

663

177

959

48

970
984

407

149
150

385
386

49
50

Spain

Sweden

Turkey

Yugoslavia

All
other

4
5
8

4
7
13

41
78
88

1
2

5
7
7

9
7
11
10
11
12
12
19
24
10
11
11

13
14
14
14
14
14
13
9
9
9
10
10

85
86
83
79
67
75
63
68
72
81
77
76

p>

6
8
8
9
10
9
9
9
11
13
11
10

54
57

137
140

105
114

Table 2a.

1954 Dec 31
1955—Dec. 31
1956—Dec. 31

109
158

216

213
211

31
28
31
30
31
30
31
31
30

219

208
188
197
189
192
209
203
207
218

31P
30P
31P

Austria

2
7

6
7
8
8
6
5
4
6
7
7

ON ON

Other
Europe

Date

1957 Jan
Feb.
Mar.
Apr
May
June
July
Aug.
Sept
Oct.
Nov
Dec.

Latin
America

1,387
1,549
1,946

1954_Dec. 31
1955—Dec 31 .
1956—Dec. 31
1957 Jan
Feb
Mar.
Apr
May
June
July
Aug
Sept
Oct.
Nov
Dec

Canada

Belgium

Denmark

Finland

37
37

10
13

3
3
4

4

30
29

13
10

4
3

4
4

11

3

5

9
8
8
7
7

3
4
3
4
4
3
4
5
4

5
4
4
6
6
7
7
6
6

6
9

9
11

Norway

Portugal

2
9
23

651
675

2
2

20
21
20
23
19
23
27
21
24
22
24
24

3
4

12

Netherlands
16
11
21

Greece

20
16

29
28
25
23
25
25
24
25
33

207
218

Other Europe

28

34

111
109

23
17
18
17
16
16
17
17
18
16
19
23

2
1
2
2
1
2

2

2

2
2
2
2
2

Table 2b. Latin America

Date

Latin
BoAmer- Argen- livia
tina
ica

Brazil Chile

Colombia

Cuba

NetherDolands Panminican Guate- Mex- West ama,
ReRe- mala
ico Indies puband lic of
pubSurilic
nam

Peru

El
Salvador

Uruguay

Other
Vene- Latin
zuela America

1954—Dec. 31
1955—Dec. 31
1956—Dec. 31

728
706
840

6
7
15

3
4
4

273
69
72

14
14
16

107
143
145

71
92
90

3
5
7

4
5
7

116
154
213

1
3
5

9
17
12

16
29
35

10
8
11

7
18
15

63
105
144

27
34
49

1957_jan. 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept. 30
Oct. 31^
Nov. 30^
Dec. 31*>

867
861
898
919
889
894
896
935
941
959
970
984

15
25
37
42
43
48
47
35
29
27
28
28

5
4
5
5
5
5
4
5
5
9
4
3

77
72
76
78
73
77
94
115
123
108
96
100

22
20
22
25
26
35
33
40
28
36
40
36

145
148
158
151
144
123
98
91
101
126
119
107

99
90
89
92
93
93
91
91
85
73
106
113

13
13
10
11
9
9
15
19
17
20
22
19

8
7
8
8
7
7
8
8
8
8
9
8

216
219
216
213
207
208
212
246
246
246
231
239

4
3
3
4
3
3
2
3
3
4
3
2

13
10
13
15
13
12
13
13
16
16
17
17

34
32
37
36
35
32
36
34
33
34
35
36

8
8
8
9
8
8
8
7
6
8
9
8

12
11
12
12
13
18
24
30
39
38
40
42

145
144
152
163
154
159
158
151
152
154
157
175

52
54
51
56
58
56
53
49
50
52
54
51

v Preliminary.
1
Short-term claims reported in these statistics represent principally the
following items payable on demand or with a contractual maturity of
not more than one year: loans made to and acceptances made for foreigners; drafts drawn against foreigners that are being collected by banking institutions on behalf of their customers in the United States; and
foreign currency balances held abroad by banking institutions and their
customers in the United States. Claims on foreigners with a contractual
maturity of more than one year reported by U. S. banking institutions




(excluded from these statistics) amounted to $1,096 million on Dec. 31,
1957. The term foreigner is used to designate foreign governments,
central banks, and other official institutions as well as banks, organizations, and individuals domiciled outside the United States, including
U. S. citizens domiciled abroad and the foreign subsidiaries and offices
of U. S. banks and commercial firms.
2 Less than $500,000.
3 Includes transactions of international institutions.

363

INTTL CAPITAL TRANSACTIONS OF THE U. S.

TABLE 2. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES i—Continued
[Amounts outstanding, in millions of dollars]
Table 2c. Asia and All Other
All other

Asia
Date
Total Hong
Kong

India Indonesia

1954—Dec. 31
1955—Dec. 31
1956—Dec. 31

143
233
337

3
3
4

5
5
6

1957—Jan. 31
Feb. 28
Mar. 31
Apr. 30
M a y 31
June 30
July 31
Aug. 31
Sept. 30
Oct. 31*
Nov. 30*
Dec. 31*

360
375
375
392
426
451
423
396
389
407
385
386

5
6
6
7
7
7
7
9
9
7
8
7

7
7
9
10
11
11
11
9
9
8
7
6

Iran

Union
BelThai- Other Total Aus- gian Egypt
of
Other
South
tralia Congo
land
Africa

16
18
20

1
1
2

()
(

PhilIsrael Japan ippines Taiwan

2}

1
8
(2)
(2)

11
10
16

50
103
170

7
19
16

5
6
6

6
8
9

39
59
91

37
43
43

14
11
11

6
5
6

I
I
I

6
8
8

10
17
17

22
22
23
24
23
22
24
24
24
24
24
22

23
24
24
22
25
24
22
24
23
26
25
24

186
192
193
210
244
258
250
216
188
174
148
145

17
18
18
19
24
30
28
40
51
51
56
53

5
6
5
5
5

10
10
10
10
13
12
11
12
8
11
12
14

83
89
86
86
74
81
63
58
71
99
99
110

48
46
49
41
46
46
46
52
52
48
49
50

11
11
13
10
13
12
12
11
11
11
10
13

5
5
5
5
6
5
6
6
5
4
5
5

I
\

8
7
7
8
8
11
12
12
11
12
14
12

21
22
22
17
18
17
15
21
24
20
19
19

6
6
6
6
6
6

TABLE 3. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPES3
[In millions of dollars]
U. S. Govt. bonds & notes
Year or month

Net pur- Purchases, or chases
sales ( - )

Sales

1,405
1,886
1,907
1,620

1,264
1,730
1,615
1,421

Purchases

Sales

801
1,341
883
665

1954
1955
1956
1957*

U. S. corporate securities

793
812
1,018
701

529
-135
-36

Foreign bonds

Net pur- Purchases, or chases
sales ( - )

Sales

792
693
607
695

841
509
992
1,383

141
156
291
199

Foreign stocks

Net pur- Purchases, or chases
sales ( - )
-49
184
-385
-688

393
664
749
591

Sales

645
878
875
620

1956—Dec...

13

39

-26

145

108

37

25

77

-52

45

44
134
68
53
102
57
29
18
16
33
38
73

28
42
'48
8
157
'31
122
175
10
19
21
40

16
91
'20
44
-55
'26
-93
-157
6
15
18
33

163
146
117
134
179
170
161
135
92
108
113
101

107
91
104
113
160
135
153
119
103
142
94
101

57
55
13
21
19
35
8
16
-11
-34
19
1

49
34
43
69
57
45
130
23
49
123
38
34

172
133
67
215
193
'43
191
36
80
106
92
55

-123
-99
-24
-146
-136
'2
-61
-13
-31
18
-54
-21

54
43
44
54
59
76
69
46
41
43
35
29

53
42
51
59
81
90
60
44
46
42
28
25

-252
-214
-126
-29

38

1957_Jan...
Feb...
Mar...
Apr...
May..
June..
July..
Aug...
Sept..
Oct.*.
Nov.*,
Dec.*.

Net purchases.or
sales ( - )

-5
-21
-14
9
2
-6
1
7
4

TABLE 4. NET PURCHASES BY FOREIGNERS OF LONG-TERM UNITED STATES SECURITIES, BY COUNTRIES
[Net sales, ( - ) . In millions of dollars]

Year or month

1954
1955
1956
1957*

International
institutions

Total
foreign
countries

78
-21
82
-157

72
706
75
320

1956—Dec..,

1
2
1
1
1
-25
1

70
145
'33
65
-11
r
61
-85
1
-6
-21
36
33

* Preliminary.




(2)
-141
1
1

' Revised.

Germany,
Federal
Republic of

Italy

Switzerland

United
Kingdom

Other
Europe

17
-2
-121
9

73
147
234
98

70
96
8
82

-20
85
33
114

19

-14

27
24
11
9
7
5

7
41
21
21
7
'50
-78
-1
-5
2
1
15

19
17
'3
10
11
'-6
13
-2
4
10
10
25

Total
Europe

-3

2
2

10

1957—Jan...
Feb...
Mar..
Apr..,
May.,
June.,
July..
Aug..
Sept..
Oct.*.
Nov.*
Dec*.

France

1
-1
1
1
-1
1

17
-2
-21
11
3

139
329
161
308

Canada

-187
265
-124

Latin
America

113
76
34
11

Asia

3
29
-1
4

-3
56
86
'36
42
27
'51
-59
15
_y

-9
22
43

For other notes see opposite page.

4
54
-4
21
-34
5
-27
-17
-5
-14
9

-j
1
2

1
-11

i
i
-2

c2)1

All
other

i
1
1
J

364

INT'L CAPITAL TRANSACTIONS OF THE U. S.

TABLE 5. NET PURCHASES BY FOREIGNERS OF LONG-TERM
FOREIGN SECURITIES OWNED IN THE UNITED STATES,
BY AREAS
[Net sales, (—).

TABLE 6. DEPOSITS AND OTHER DOLLAR ASSETS HELD AT
FEDERAL RESERVE BANKS FOR FOREIGN CORRESPONDENTS i
[In millions of dollars]

In millions of dollars]
Assets in custody

Year or
month

1954
1955
1956

InterTotal
national foreign
couninstitutions
tries

Europe

33
24
17
15

-34
-49
-40
-45

7
-7
-16
13

-41

13

-47

0)

-8

0)

-52
-107
-31
-146
-76
'-11
49
-5
-39
96
6
-18

16
-7
\
10
1
-12
117
15
-9
85
9
10

-72
-97
-14
-153
-84

2
2

-9
-6
-2
-2
-4
-3
-1
-2
- 1A

11
1
-16

1956—Dec...

-3

1957—Jan...
Feb...
Mar...
Apr...
May..
June..
July...
Aug...
Sept...
Oct. ». .
Nov.?.
Dec.p.

-71
9
-1
-5
-81
1
-101
-6
2
-77
-53

0)

Preliminary.
i Less than $500,000.

r

r

-li

-70
-21
-30
13
5
-18

0)

10
2
2
2
2
1
-4
T

Date

All
other

-133
74
-447
-551

-137
4
-478
— 334

p

Q

Latin
Amer- Asia
ica

-46
8
235

— 164
-27
-33
— 384

1957 p

Canada

0)
14
—1

0)
0)

-5
-7

1

Deposits
U. S. Govt.
securities2

Miscellaneous 3

1956—Dec. 31

322

3,856

139

1957__Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

28
31
30
31
30
31
31
30
31
30
31

327
311
316
360
449
364
342
337
378
283
356

3,671
3,744
3,727
3,600
3,685
3,730
3,523
3,421
3,774
3,787
3,729

156
158
165
164
164
278
280
278
349
344
353

1958—Jan. 31
Feb. 28

249
265

3,755
3,552

405
428

1958_Feb. 5
Feb. 12
Feb. 19
Feb. 26

284
297
291
274

3,646
3,654
3,732
3,619

416
419
420
429

Revised.
1
Excludes assets held for Intl. Bank and Monetary Fund and earmarked
gold. See note 4 at bottom of following page for total gold under earmark at Federal Reserve Banks for foreign and international accounts.
2
U. S. Treasury bills, certificates of indebtedness, notes and/or bonds.
3 Consists of bankers' acceptances, commercial paper, and foreign and
international bonds.
NOTE.—For explanation of table and for back figures see BULLETIN
for May 1953, p. 474.

GOLD PRODUCTION
[In millions of dollars at $35 per fine troy ounce]
Production reported monthly
Estimated
world
production

Year or
month

Jan

77.5
73.7
278.3
277 2
278.8
277.7

Feb

Mar
Apr
May

June
July
AUK

Sept
Oct

Nov
Dec
1

753.2
777.1
758.3
780.9
776.5
826.2
873.8
910.6
73.6

1956—Dec
1957

Total

840.0
864.5
840.0
868.0
864.5
913.5
959.0
994.0

1949
1950
1951
1952
1953
1954
1955
1956

..

North and South America

Africa

U.S.S.R.)

Ghana Belgian United
Congo States

South
Africa

Rhodesia

409.7
408.2
403.1
413.7

18.5
17.9
17.0
17.4
17.5
18.8
18.4
18.8

23.1
24.1
22.9
23.8
25.4
27.5
23.8
21.9

12.9
12.0
12.3
12.9
13.0
12.8
13.0
13.1

1.5

2.2

1.6

2.3

417.9
462.4
510.7
556.2
45.8
48.3
46.3
49.2
49 1
50.6
50.1
51.4
51.1
50 3
50.9
49.8
49.0

J5
5
6

.5
6
.5
1.6

2.3
2.2
2.2

2.2
2.2
2.3
2.4
24
2.4
2.4
2.4

Gold exports, representing about 90 per cent of total production.
Excluding Mexico.
Sources.—World production: estimates of U. S. Bureau of Mines.
Production reported monthly; reports from individual countries except
2




Canada

Mexico

67.3
80.1
66.3
67.4
69.0
65.1
65.7
65.3

144.2
155.4
153.7
156.5
142.4
152.8
159.1
153.4

14.2
14.3
13.8
16.1
16.9
13.5
13.4
12.3

1.0

4.6

12.7

.9

5.0
4.4
5.1
4 7
5.0
4.9
5.8
5.8
5 7
6.5
5.1
5.5

12.6
12.0
13.2
12 9
13.1
12.6
12.8
12.6
13 1
13 9
13.1
12.9

l.l
5
1.0
9
1.2
1
1
0

.9

Other

Colom- Chile
bia

Nica- Austra- India
ragua 1
lia

12.6
13.3
15.1
14.8
15.3
13.2
13.3
15.3

6.3
6.7
6.1
6.2
4.6
4.4
4.3
3.3

7.7
8.0
8.8
8.9
9.1
8.2
8.1
7.6

31.3
30.4
31.3
34.3
37.7
39.1
36.7
36.1

5.7
6.7
7.9
8.9
7.8
8.4
7.4
7.3

.7

.7

.3

.6

2.9

.6

1.0
.8

1.5
1.2
1.0
7
.9
.7
9
.8
9
.8
1.1

.4
.2
.3
5
.3
.2

.6
.5
.6

3.0
2.8
3.1
3 2
3.1
3.4
3.7
3 0
3 1

.5
.5
.5
6
.5
.5
.5

.6
.6
.6
.6
6
6
.6
.5

Ghana and Belgian Congo, data for which are from American Bureau of
Metal Statistics. For the United States, annual figures are from the
U. S. Bureau of the Mint and monthly figures are from American Bureau
of Metal Statistics.

365

U. S. GOLD
NET GOLD PURCHASES BY THE UNITED STATES, BY COUNTRIES
[In millions of dollars at $35 per fine troy ounce. Negative figures indicate net sales by the United States]
Quarterly totals
Annual totals
1956

Area and country
1950
Continental Western Europe:
Belgium

1951

1952

1953

1955

1954

1956

1957

1-58.0 1-18.3 1-5.8
-84.8 -20.0
-10.0
-79.8
- 4 . 5 -100.0
- 1 5 . 0 -34.9 - 5 . 0
- 2 2 . 9 -32.0
- 3 8 . 0 -15.0 "*22.*5
- 6 5 . 3 -30.4
- 1 6 . 4 -29.7

-54.9
-15.0
-15.5
-20.0
2.6

-5.0

5.0

4.0

-77.5

-19.2

67.7

1-94.8

-67.5
-225.6 -10.0

-1,020.0
13.1
3.5

469.9
52.1
3.6

440.0
11.5
-.3

-480.0

5

525.6

451.2

- 4 8 0 5 — 50 5

-100.0

-10 0

7.2

Canada
Latin America:
Argentina

-49.9 - 2 0 . 0
17.5 - 2 2 . 8
-10.0
28.2 -20.0
87.7
-118.2 -60.2
14.9
-64.8
22.2
-.9
-7.2 -34.7 - 2 . 4

Cuba
Uruguay . . .
Venezuela
Other

-172.0 -126.0
4-38.9 4-53.7
13.7
5-44.2 5-76.0

Total

All other

-1,725.2

Grand total

75.2

3.4
-33.8

3.4

3.4

25.0

Apr.June

JulySept.

Oct.Dec.

3.4

5 0

20 0

'"Is'.i

"'is'.!

-8.0

-50.0

-.5

-1,003.4

Total...

Jan.Mar.

Oct.Dec.

339.3

-546.4 -328.3

-8.3

Total
Sterling Area:
United Kingdom
Union of South Africa
Other

-130.0
-65.0
-59.9
-20.0
-65.0
-94.3
-17.5

-380.2 -184.8 - 1 1 5 . 6

Germany (Fed. Rep. of)
Netherlands
Portugal
Sweden
Switzerland
Bank for Intl. Settlements....
Other

1957

7.0

18.6

100.3

1.0

331.3

30.4

6.0

31.3

100.3

-.1
— .1

100 3

100 3

14 6

-28.1
-15 0
-.3

80.3
—5 0
-30.0
17.2

57.5

-131.8

62.5

-6.7

-5.7

-9.9

11.0
3.0

14 6

5 2

115.3
28.1

-84.8
-3.5

5 2
75.4

40.1

10.0

10.1

3 1

27 1
-200.0

2.4

-.2

-3.6

2.8

6.5

12.9

15.0

46.6

-.4

-.5

4.0

14.9

29 1
-200.0
-.7

14.0 - 2 8 . 3
-4.9

18.0

40.2

3 1

80.9 -133.0

-.2

15.0

— .2

3.3

13.1
(2)

-.4

393.6 - 1 , 1 6 4 . 3 - 3 2 6 . 6

1
Includes sales of gold to Belgian Congo as follows (in millions): 1950,
$3.0; 1951, $8.0; 1952, $2.0; and 1953, $9.9.
2 Less than $50,000.
3
Includes purchase of $31.5 million of gold from Spain.

6200.0
-68.5

6600.0

280.2

771.6

625.0 6300.0 6300.0
25.2

318.4

341.5

-.1

18.9

(2>

92. g

4 Includes sales of gold to Indonesia as follows: 1950, $29.9 million;
and 1951, $45.0 million.
5 Includes sales of gold to Egypt as follows: 1950, $44.8 million; and
1951, $76.0 million.
6 Represents purchase of gold from International Monetary Fund.

ANALYSIS OF CHANGES IN GOLD STOCK OF THE UNITED STATES
[In millions of dollars]
Gold stock
(end of year)
Year
Treas- Total i
ury

Increase
in total
gold
stock

EarNet
marked Domesgold
import, gold: de- tic gold
crease, producor
or inexport
tion

Month

crease
(-)

1945
1946
1947
1948
1949
1950

20,065
20,529
22,754
24,244
24,427
22,706

20,083 -547.8 -106.3 — 356.7 32.0
465.4 51.2
20,706
623.1 311.5
210.0 75.8
22,868 22,162.1 1,866.3
24,399 1,530.4 1,680.4 - 1 5 9 . 2 70.9
24,563
164.6 686.5 -495.7 67.3
22,820 -1,743.3 -371.3 -1,352.4 80.1

1951
1952
1953
1954
1955
1956
1957

22,695
23,187
22,030
21,713
21,690
21,949
22,781

617.6
22,873
52.7 -549.0
23,252
379.8 684.1 -304.8
22,091 -1,161.9
2 . 0 -1,170.8
21,793 -297.2
16.1 -325.2
21,753
-40.9
97.3 -132.4
22,058
305.9 106.1
318.5
600.1
22,857
798.8
96.7

66.3
67.4
69.0
65.1
65.7
65.3
63.6

* Preliminary.
>
1 See note 2 on following page.
2 Net after payment of $687.5 million in gold as United States gold subscription to the International Monetary Fund.




Gold stock
(end of month)

1957—Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1958_Jan
Feb

Increase
in total
gold
Treas- Total 1
stock
ury
22,304
22,306
22,318
22,620
22,623
22,627
22,626
22,635
22,691
22,763
22,781

22 396
22,406
22,424
22,726
22,732
22,735
22,735
22,759
22,835
22,837
22,857

EarNet
marked Domesgold
import, gold: de- tic gold
crease, producor
or inexport
tion
crease
(-)

18 6 - 2 9 . 8
10.2 - 8 . 8
17.4
20.8
302.6
20.0
5.5
10.0

28 0
16.0
-5.8
285.4
-6.0

20.2

28.6
18.9
42.8
26.7
18.8

-11.4
-9.0
36.9
-31.2
2.0

4 4
5.1
4.7
5.0
4.9
5.8
5.8
5.7
6.5
5 1
5.5

22,784 22,860
2.3
^22,686 ^22,735 ^ - 1 2 4 . 2

52.6
3

-37.3
4-167.6

4 4
(3)

3.8

-.5
24.1
75.4
2.4

2.7

()

-.8

3
Not yet available.
4 Gold held under earmark at the Federal Reserve Banks for foreign
and international accounts amounted to $6,227.5 million on Feb. 28, 1958.
Gold under earmark is not included in the gold stock of the United State*.

366

GOLD RESERVES
REPORTED GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars]
United States
Estimated
total
Treasury Total 2
world i

End of
month

'35,660
35 970
'36 390
'37,060
'37,720
'38,210
r

.

1957 Jan
Feb
Mar
Apr

'38,520

May

'38 720

June
July
Aus

r

Sent
Oct
Nov

38 800

^38,930

Dec
1958—Jan

22,873
23,252
22,091
21,793
21,753
22,058

22,252
22 304
22,306
22,318
22,620
22,623
22,627
22,626
22,635
22 691
22,763
22,781

22,377
22 396
22,406
22,424
22,726
22,732
22,735
22,735
22,759
22 835
22,837
22,857

Australia

Belgium

Brazil

Canada

621
706
776
778

317
317
321
322

850
896

144
107

929
928

323
324

109

877

113

864

22,860

268
371
371
371

112
112
117
138

996

1,080
1,141
1,113

181
181

113
113
116
116

181

116

181
166
127
126

116
116

882
874

324
324
324
324
324
324
324
324
324

119
123
126

876
875
913

324
324
324

1,116
1,110
1,112
1,114
1,116
1,121
1,120
1,135
1.136
1*136
1,127
1,115

946

324

1,116

182

Germany,
France 3 Federal GuateRepublic mala
of

Finland

End of
month

22,695
23 187
22,030
21,713
21,690
21,949

22,784

1951 Dec
1952 Dec
1953 Dec
1954—Dec
1955 Dec . .
1956 Dec

Argentina

India

848
849
849
842
846

Indonesia

Iran

Italy

Chile

45
42
42
42
44
46

Colombia

48
76
86
86
86
57
57
57
57
57
57
58
58
58

Cuba

Denmark

311
214
186
186
136
136

31
31
31
31
31
31

174

136
136
136
136
136
136
136
136
136
136

188
188
188
174
183
188
188
188
188
188

188

43
46
46
46
46
43
43
40
40
40
40
40

136
136

31
31
31
31
31
31
31
31
31
31
31
31

40

136

31

Mexico

Netherlands

Egypt

Norway

Pakistan

174
174
174
174
188

188
188

Peru

1951 Dec
1952—Dec
1953 Dec
1954—Dec
1955 Dec
1956 Dec

26
26
26
31
35
35

548
573
576
576
861
861

28
140
326
626
920
1,494

27
27
27
27
27
27

247
247
247
247
247
247

280
235
145
81
81
45

138
138
137
138
138
138

333
346
346
346
352
338

208
144
158
62
142
167

316
544
737
796
865
844

50
50
52
45
45
50

27
38
38
38
48
49

46
46
36
35
35
35

1957 Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct ..

35
35
35
35
35
35
35
35
35
35
35

861
861
861
861
861
575
575
575
575
575
575

27
27
27
27
27
27
27
27
27
27

247
247
247
247
247
247
247
247
247
247
247

44
44
43
42
41
40
40
41
41
41
41

138
138
138
138
138
138
138
138
138
138
138

325
350
364
359
359
364
390
422
428
443

167
167
166
166
165
165
164
163
182
182

834
819
814
809
806
806
793
747
700
700
700

49
49
49
49
49
49
49
49
49
49
49

35
35
35
35
35
35
35
35
35
28
28

49

28

1958—Jan

End of
month

575
575

2,501

El Salvador

South
Africa

Spain

190

51

Portugal

1951—Dec
1952 Dec
1953—Dec
1954 Dec
1955 Dec .
1956—Dec

265

286
361
429

428
448

1957 Jan
Feb
Mar
Apr

452
461
461
461
463

June
July
A.U2
Sent
Oct

.

Nov

Dec
1958

Jan

. . . .

458
461
466
467
464
469
461

26

29
29

170
176

29

199

28
28
28
32
32
32
31
31
31
31
31
31
31
31
31

212
224
226
227
233
230

247

138

744

138

792

45

49

Venezuela

Intl.
Monetary
Fund

Sweden Switzerland

152

51
54

184
218

56

265

151

113

112
112

144

112
112
112
112
112
112
112
112
112
112
112
112

256
256
252
249

234
226
226
215
215
218
217

56
56
56
56
56
56
56
56
56
56
56
56

231
233
241
235
226
227
219

1,667
1,652
1,636
1,621
,615
,633
,674
,694
,725
,733
,718
'1 706

206

56

215

1 ,715

231

Turkey

113

276
266

235

Thailand

J.452
1,411
1,459
1,513
1,597
1,676

56
56

r
P Preliminary.
Revised.
1 Excludes U.S.S.R. and other Eastern European countries.
Represents reported gold holdings of central banks and governments
and international institutions, unpublished holdings of various central
banks and governments, estimated holdings of British Exchange Equalization Account based on figures shown below under United Kingdom,
and estimated official holdings of countries from which no reports are
•received.
2 Includes gold in Exchange Stabilization Fund. Gold in active portion
«of this Fund is not included in regular statistics on gold stock (Treasury




39

45
45
45
48
47
46
45
45
45
45
46
45

39

35
35

. .

Nov
Dec

1,566
1,661
1,756
1,834
1,923
2,029
2,124
2,261
2,399
2,548
2 557
2 542

113
113

United
Kingdom 4

Uruguay

221

144
144

2,335
1,846
2,518
2,762
2,120
2,133

144
144
144
144
144
144
144
144
144
144
144
144

2,084
2,147
2,209
2,320
2,345
2,381
2,367
2,142
1,850
2,093
2,185
2,273

186
186
183
183

603
669
669
669

183

669

144

2,404

143
143

207
227
227

216
186

183
183
183
183
183
183
180

373

373
373
403

403
603

669
719
719
719
719
719
719
719

1.530
1,692
1,702
1,740
1,808
1,692
1,420
1,433
418

1,439
1,141
1,147
J.148
,157
,167
,177
,180
.180

Bank for
Intl.
Settlements
115

196
193
196

217
179
202
197
168
160
148
205
165
184
138
130
143
165
171

gold) used in the Federal Reserve statement "Member Bank Reserves,
Reserve Bank Credit, and Related Items" or in the Treasury statement
"United States Money, Outstanding and in Circulation, by Kinds."
3 Represents holdings of Bank of France (holdings of French Exchange
Stabilization Fund are not included).
4 Exchange Equalization Account holdings of gold and of United
States and Canadian dollars, as reported by British Government. (Gold
reserves of Bank of England have remained unchanged at $1 million
since 1939, when Bank's holdings were transferred to Exchange Equalization Account.)

367

GOLD RESERVES AND DOLLAR HOLDINGS
ESTIMATED GOLD RESERVES AND DOLLAR HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL
INSTITUTIONS
[In millions of dollars]
Dec. 3 I, 1955
Gold&
shortterm
dollars

Area and country

Continental Western Europe:
Austria
Belgium-Luxembourg (and Belgian Congo)..
Denmark.
Finland
France (and dependencies)1
Germany (Federal Republic of)
Greece
Italy
Netherlands (and Netherlands West Indies

Dec. 31, 1956

Mar. 31, 1957

368
1,170
107
94
1,302
3,520
189
1,250

9
11
6
5
8
14

1,024
121
628
148
480
2,410
158
898

10
'93

Total
Sterling Area:
United Kingdom
United Kingdom dependencies
Australia
India
Union of South Africa
Other

361
1,227
96
88
1,505
3,329
187
1,268

10
12
6
5
7
14

9
87

3
(3)
44

1,071
117
628
160
483
2,512
164
917

343

14,113

298

13,867

2,600
84
219
320
265
214

Spain (and dependencies)
Sweden
Switzerland
Turkey
Others

Sept. 30, 1957 Dec. 31, 1957?

U . S . Gold& U . S . Gold& U . S . Gold& U . S . GoldA U . S . Gold& U.S.
Govt. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt.
bonds
term bonds
bonds
term bonds
term bonds
term bonds
term
& notes dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes

13,214

Norway

June 30, 1957

282
4

2,812
103
191
323
277
228

203
4

2,854
93
193
324
293
226

238
4

326
1,201
91
84
1,957
2,374
187
1,137

10
10
7
5
151
8

1,100
127
601
221
429
2,354
153
872

44
53

2

1
1
7

2

(3)
131

8
1
1
14

2

376
1,133
92
94
2996
3,719
177
1,323

8
11
6
5
9
14

'1,004
133
622
142
499
'2,442
158
1,188

10
'86

2

418
1,165
133
97
1,004
4,063
152
1,457

8
8
6
5
9
14

12
81

2

446
1,182
143
100
947
4,099
167
4
1,522
1,044

8
8
6
5
9
14

138
651
115
478
2,671
162
850

109
3
7
128

2
16

8

971
139
636
140
508
2,527
156
873

'308 '14,098

'298

14,439

294

14,715

330

'264

2,507
109
197
329
262
227

180
4

2,875
104
211
329
255

208
4

1
1
25

2,894
96
191
323
294
226

3
(3)
132
'15

(3)
132

(3)
1
1
'29

(3)
134

2
1
1
30

224

15

(3)

1
1
30

3,702

Other
Total
Asia:
Japan

. . .

Thailand
Other
Total
All other:
Egypt 6
Other
Total 6
Total foreign countries6
International ^
Grand total 6

3,983

269

4,024

'299

3,631

216

3,998

244

367

2,608

438

2,712

457

2,791

443

2,738

456

8
8
169
8
4

456
115
211
371

(3)
1
2
11

313
28
457
117
244
416
70
87
553
129
96
65
243
1,615
128

1
1

(3)
2
2
12

345
24
467
131
263
393
98
97
504
135
110
81
248
1,450
140

8
1

3
12

332
25
556
137
250
354
89
101
575
117
117
73
257
1,043
134

8
1

3
15

360
29
549
137
210
347
79
91
600
109
119
53
259
1,058
113

195

4,113

190

4,160

190

4,486

188

255
175
1,021
268
250
647

15

4
6
1
6

188
178
1,003
267
279
730

8
4

4

231
158
1,145
294
260
707

6
1
6

168
173
754
243
279
767

2,616

30

2,795

17

2,645

17

246
'135

Panama, Republic of.
Peru
El Salvador

223

2,629

3,789

Cuba
Dominican Republic.

3,934

437

509
26
466
139
217
389
77
72
556
86
127
52
281
668
124

Latin America:
Argentina
Bolivia
Brazil
Chile

295

2,173

Total
Canada

'8

238
'129

'8

248
'163

'8

'381

'8

'367

'8

'411

'8

1

(3)

4
6

'25,875 1,308
3,689

321

'29,564 1,629

167

8
4
(3)
(3)
j

'27,951 1,103
3,144

391

'31,095 1,494

v Preliminary.
' Revised.
* Excludes gold holdings of French Exchange Stabilization Fund.
2 Does not include $286 million of gold loaned by Bank of France to
the French Exchange Stabilization Fund on June 26, 1957.
3 Less than $500,000.
4 Includes latest reported figure (Oct. 31) for gold reserves.
5 Includes Yugoslavia, Bank for International Settlements (both for
its own and European Payments Union account), gold to be distributed
by the Tripartite Commission for Restitution of Monetary Gold, and
unpublished gold reserves of certain Western European countries.
6
Excludes gold reserves of the U. S. S. R. and other Eastern European
countries.




1
1

1

167
4
1

'27,674 '1,230
2,996

391

'30,670 '1,621

1

167
4,
1

167

1

263
26

65
92
4
557

(3)
1
1
154
(3)
3
1

8

136
88
58
235

2
13

1,548
123

2
13

4,561

189

4,344

176

8
2

8
2

190
193

(3)

6
1
7

220
187
698
235
275
768

2,384

16

246
'175

'7

'421

'7

'28,125 '1,265
2,720

366

'30,845 '1,631

j

6
1
7

708
181
269
111

2
5
1
9

2,383

16

2,318

17

242
166

228
162

(3)

7

408

7

390

7

28,213 1,165
2,679

222

30,892 1,387

28,503 1,230
2,697

222

31,200 1,452

7 Represents International Bank for Reconstruction and Development,
International Monetary Fund, and United Nations and other international organizations.
NOTE.—Gold and short-term dollars include reported and estimated
official gold reserves, and total dollar holdings as shown in Short-term
Liabilities to Foreigners Reported by Banks in the United States, by
Countries (Tables 1 and la-Id of the preceding section). U. S. Govt.
bonds and notes represent estimated holdings of such securities with original maturities of more than one year; these estimates are based on a
survey of selected U. S. banks and on monthly reports of security transactions. For back figures see BULLETIN for March 1956, pp. 304-05.

368

INTERNATIONAL INSTITUTIONS
INTERNATIONAL MONETARY FUND

INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT

[End-of-month figures. In millions of dollars]

[End-of-month figures. In millions of dollars]
1957

1957

1956

Item
Sept.

Dec.

June

Mar.

Oct.

1,269 1,141 1,034\
948
848
620
67*> 67C)
676
609
21
2C)
IS>
20
11
319
302\
28S> 266
254
1,86'f 1,854 I 1,853 1,853
1,867

Capital

9,016 8,941 8,932 8,929 8,929
-2
-6
-10
-14
2
2
2

Country 9
Disbursed

Repaid

Continental W. Europe, total. .
Belgium and Luxembourg...
France
Italy
Netherlands
Other

1,197
173
267
163
236
358

1 ,044
121
267
102
236
318

197
13
18

Sterling area, total
Australia

1,142
318
356
112
160
146
49

Latin America, total
Brazil
Colombia
.
Mexico
Other
Asia (excl.Sterling area),total.
Thailand
Other

Total

Sold
to
others5

143
23

847
108
249
101
93
295

73
25
14
7
21
6

803
285
218
55
135
82
27

84
14
25
9
26
4
7

719
272
193
46
109
79
20

87
26
14
4
20
24

744
182
111
152
298

Pakistan
. . . .
Union of S. Africa
United Kingdom
Other

581
167
90
142
182

66
17
19
10
20

515
150
71
132
161

26
1
3
10
13

320
107
213

161
37
124

6
4
2

155
33
121

14
2
12

Total

24

8

1

7

1

63,426

Africa (excl. Sterling a r e a ) . . . .

Oct.

Member subscriptions
Accumulated net income.
Reserves and liabilities..,

Outstanding
Principal

Jan

1,177 1,148 1,439 1,420 1,687
200
200
200
200
200
811
977 1,423 1,697
992
5,948 5,777 5,489 5,051 4,387
874
824
817
942
818
8
3
2
6
5

Cumulative net drawings
on the Fund

Quota

Area and member country

Apr.

Gold
Investments^
Currencies: United States 1
Other 1
Unpaid member subscriptions
Other assets

Loans by country, Jan. 31, 1958
4

July

Dec.

602
524\
484I 430
365
Dollar deposits and U. S. securities.
813
858
901
931
872
Other currencies and securities 1 ...
2,606 2,54S 2,43' r 2,378 2,238
Effective loans 2
54
41
75
It >
11
Other assets 3
IBRD bonds outstanding
Undisbursed loans
Other liabilities

1956

Item

2 ,597

354

2,243

7202

Argentina
Belgium
Brazil
Chile
Colombia
Cuba
Denmark
Egypt
France
India
Indonesia
Iran
Japan
Netherlands
United Kingdom
United States. . .

1957

Paid
in
gold

Total
150
225
150
50
50
50
68
60
525
400
110
35
250
275
1,300
2,750

Dec.

1956
Nov.

Dec.

75
75
38
50
50
56
75
38
75
38
31
13
25
9
25
25
25
13
25
13
25
13
34
34
6
30
30
10
15
263
263
108
200
200
28
55
55
16
55
25
25
9
25
125
63
125
69
69
69
562
562
562
236
688 10-1,936 io-l,926 io_969

Notes to tables on international institutions:
1 Currencies include demand obligations held in lieu of deposits.
2 Represents principal of authorized loans, less loans not yet effective,
repayments, the net amount outstanding on loans sold or agreed to be
sold to others, and exchange adjustment.
3
Excludes uncalled portions of capital subscriptions.
* Loans to dependencies are included with member.
5 Includes also effective loans agreed to be sold but not yet disbursed.
6 Includes $200 million in loans not yet effective.
7 Includes $181 million not guaranteed by the Bank.
* U. S. Treasury bills purchased with proceeds of sales of gold.
9
Countries shown are those with cumulative net drawings of $25
million or more on the latest date.
1 ° Represents sales of U. S. dollars by the Fund to member countries
for local currencies, less repurchases of such currencies with dollars.

PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS
Bank of England (millions of pounds sterling)

Date

Assets of issue
department

Gold

Assets of banking department

Other
assets
(fiduciary
issue)

Coin

Notes

Discounts
and advances

Securities

Liabilities of banking department
Note
circulation 1

Deposits

Capital
and
surplus

Bankers'

Public

ECA

Other

7.2
9.6
3.2

70.4
66.3
71.7
74.9

18.2
18.1
18.1
18.1

30
29
28
26

.4
.4
.4
.4

1,675.0
1,775.0
1,900.0
2,025.0

2.4
2.4
2.3
1.9

55.4
23.7
10.7
27.7

4.9
8.9
37.7
11.0

338.1
350.7
299.6
267.7

1,619.9
1,751.7
1,889.6
1,997.7

290.2
276.1
245.2
203.6

14.9
15.4
12.0
11.6

1957_Feb. 27
Mar. 27
Apr. 24
May 29
June 26
July 31
Aug. 28
Sept. 25
Oct. 30
Nov. 27
Dec. 25

.4
.4
.4
.4
.4
.4
.4
.4
.4
.4
.4

1,925.0
1,925.0
1,975.0
1,975.0
2,000.0
2,075.0
1,025.0
2,000.0
2,000.0
2,050.0
2,150.0

2.0
2.3
2.4
2.4
2.4
2.4
2.4
2.5
2.5
2.4
2.4

52.0
22.5
23.1
21.7
14.9
15.9
29.9
32.9
33.4
48.9
22.4

15.8
18.6
21.5
40.5
32.6
29.9
17.6
15.1
13.7
19.8
21.0

261.0
290.3
259.2
243.2
268.4
262.4
253.5
271.0
288.7
260.3
263.6

1,873.4
1,902.8
1,952.2
1,953.7
1,985.5
2,059.5
1,995.5
1,967.5
1,967.0
2,001.4
2,128.0

225.2
228.9
202.4
204.4
216.3
205.0
199.3
216.8
234.6
226.9
199.5

13.5
13.7
11.5
10.1
12.2
13.4
11.6
13.0
10.1
10.1
9.8

73.7
72.5
74.5
75.3
71.8
73.9
74.2
73.1
75.7
76.4
81.9

18.5
18.5
17.8
18.0
18.1
18.3
18.5
18.5
17.8
18.0
18.1

1958—Jan. 29

.4

2,000.0

2.4

43.2

25.3

239.4

1,957.2

205.1

12.2

74.6

18.3

1953—Dec.
1954_Dec.
1955—Dec.
1956—Dec.

For notes see opposite page.




369

CENTRAL BANKS
PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued
Bank of Canada (millions of Canadian dollars)
Liabilities

Assets 2
Date

Sterling
and
United
States
dollars

Dominion and provincial govt. securities

Deposits
Other

Shortterm

Note
circulation

Other

Chartered
banks

Dominion
govt.

Other
liabilities
and
capital

Other

31,
31,
31,
31

54.9
54.2
57.4
60.8

,376.6
,361.5
,283.8
,025.0

893.7
871.1
,093.7
,392.0

112.0
114.1
185.2
69.9

1,599.1
1,623.5
1,738.5
1,868.7

623.9
529.6
551.0
511.5

51.5
56.3
89.2
38.8

29.5
30.5
34.0
31.2

133.1
161.0
207.5
97.5

1957—Feb. 28,
Mar. 30,
Apr. 30,
M a y 31
June 29,
July 31,
Aug. 31,
Sept. 30,
Oct. 31
Nov. 30,
Dec. 31,

60.8
53.7
50.3
52.3
57.3
63.1
62.4
55.3
56.6
56.2
63.5

,052.7
,105.2
,158.0
,165.9
,213.3
,197.7
,251.8
,208.4
,297.5
,321.5
,246.2

,189.4
,176.3
,190.2
,185.1
,194.3
,202.3
,208.4
,204.2
,192.1
,152.0
,217.5

118.6
213.5
119.2
188.7
210.3
100.7
203.9
110.9
163.5
252.8
131.5

1.717.9
1,724.6
1,756.3
1,751.5
1,784.3
1,817.7
1,815.5
1,819.1
1,824.0
1,828.0
1,903.7

497.5
519.5
546.9
526.3
545.5
490.5
542.8
480.8
623.7
543.4
517.6

52.7
78.3
62.9
43.9
44.4
54.2
64.0
66.9
40.1
64.3
35.4

27.2
25.1
22.5
32.0
28.9
26.9
33.3
28.7
25.8
30.7
31.2

126.3
201.2
129.2
238.3
272.1
174.5
270.9
183.3
196.0
316.1
170.8

1958—Jan. 31,

63.0

1,265.5

1,105.0

182.2

1,776.5

533.8

57.3

23.3

224.8

1953—Dec.
1954—Dec.
1955—Dec.
1956—Dec.

Bank of France (billions of francs)
Liabilities

Assets
Date
Gold

1953—Dec.
1954—Dec.
1955—Dec.
1956—Dec.

Foreign
exchange

Advances to
Government

Domestic bills
Open
market

Special

Other

Current

Deposits
Other
assets

Note
circulation

Other

Govern- Other*

Other
liabilities
and
capital

31
30
29
27

201.3
201.3
301.2
301.2

15.4
57.3
200.2
49.6

292.5
236.8
226.7
289.2

61.1
48.9
45.2
30.5

891.6
1,130.2
1,194.7
1,753.7

200.0
195.0
190.0
179.0

679.8
617.6
539.8
479.8

170.0
277.2
336.8
236.4

2,310.5
2,538.5
2,820.0
3,046.9

144.9
157.8
142.9
173.8

56.3
67.9
71.8
98.8

1957—Feb. 28
Mar. 28
Apr. 25
May 29
June 27
July 25
Aug. 29
Sept. 26
Oct. 31
Nov. 28,
Dec. 26

301.2
301.2
301.2
301.2
201.2
201.2
201.2
201.2
201
201
201

32.9
23.1
12.2
12.0
12.0
11.9
11.9
11.9
12.0
12.0
11.9

317.4
310.3
325.2
322.9
274.9
273.6
307.2
322.7
315.2
282.0
290.2

25.0
27.6
24.9
20.2
16.1
7.3
6.2
18.3
44.0
44.6
52.3

1,735.7
1,836.8
1,871.9
1,948.1
2,014.1
2,027.1
1,931.4
1,886.7
F,914.9
1,893.9
1,951.2

171.3
175.0
158.3
175.0
175.0
175.0
175.0
175.0
175.0
175.0
175.0

479.8
479.8
479.8
479.8
594.1
752.1
789.8
804.8
829.8
820.1
796.4

245.7
192.6
196.9
192.4
267.0
306.6
271.1
266.2
341.1
296.2
295.0

3,065.8
3,051.6
3,044.1
3,106.9
3,130.0
3,238.3
3,219.7
3,214.4
3,292.5
3,139.9
3,174.9

161.1
214.3
222.7
263.1
330.9
397.7
376.6
359.5
417.0
467.1
475.3

82.2
80.6
103.6
81.6
93.6
118.9
97.4
112.9
123.6
118.0
122.9

1958—Jan. 30

3201.2

11.9

260.3

53.4

1,868.9

175.0

949.4

3268.8

3,191.7

469.0

128.1

Central bank, monetary unit,
and item

1958
Jan.

Central Bank of the Argentine Republic
(millions of pesos) :*
Gold and foreign exchange ( n e t ) . . .
Net claim on Intl. Fund 7
Advances to Government
Government securities
Loans and discounts
Other assets
Currency in circulation
Deposits—Government
Banks
Other
Other liabilities and capital

1957
Dec.

Nov.

Central bank, monetary unit,
and item
Jan

618
-675
2,581
32,230
69,939
",963
50,450
1,346
5,601
257
51,001

Notes to central bank table on this and opposite page:
1 Notes issued, less amounts held in banking department.
2 Gold was transferred on May 1, 1940, to Foreign Exchange Control
Board in return for short-term Govt. securities (see BULLETIN for July
1940, pp. 677-78).
3
Other assets include 100.0 billion francs of gold loaned to Stabilization Fund.
4
Includes Economic Cooperation Administration.
5
Less than 50 million francs.




.1

1958
Jan.

Commonwealth Bank of Australia
(millions of pounds):
Gold and foreign exchange
Checks and bills of other banks..
Securities (incl. Govt. and Treasury bills)
Other assets
Note circulation
Deposits of Trading Banks:
Special
Other
Other liabilities and capital

1957
Dec.

470
4

475
5

473
46
391
340
21
241

Nov.

Jan.

349
6

519
24
425

469
3
497
22
389

340
22
235

340
25
237

279
43
227

520
58
385

6 Under the banking reform, effective Dec. 2, 1957, the Central Bank
has been reorganized. The balance sheet has been substantially modified,
and figures are not comparable with those shown previously.
7
This figure represents the amount of the country's subscription to
the Fund less the bank's local currency liability to the Fund.
NOTE.—All figures, including gold and foreign exchange, are compiled
from official reports of individual banks and are as of the last report date
of the month. For details relating to individual items, see BULLETIN for
April 1955, p. 443.

370

CENTRAL BANKS
PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued

Central bank, monetary unit,
and item

1958
Jan.

Austrian National Bank (millions of
schillings):
Gold
Foreign exchange (net)
Loans and discounts
Claim against Government
Other assets
Note circulation
Deposits—Banks
Other
Blocked
Other liabilities and capital
National Bank of Belgium (millions of
(francs):
Gold
Foreign claims and balances (net).
Loans and discounts
Consolidated Govt. debt
Govt. securities
Other assets
Note circulation
Deposits—Demand
ECA
Other liabilities and capital
Central Bank of Bolivia—Monetary
dept. (millions of bolivianos):
Gold at home and abroad
Foreign exchange (net)
Loans and discounts
Govt. securities
Other assets
Note circulation
Deposits
Other liabilities and capital
Central Bank of Ceylon (millions of
rupees):
Foreign exchange
Advances to Govt
Govt securities
Other assets
Currency in circulation
Deposits—Government
Banks
Other liabilities and capital
Central Bank of Chile (millions of
pesos):
Gold
Foreign exchange (net)
Net claim on Intl. Fund *
Discounts for member banks
Loans to Government
Other loans and discounts
,
Other assets
Note circulation
Deposits—Bank
Other
Other liabilities and capital
Bank of the Republic of Colombia (millions of pesos):
Gold and foreign exchange
Net claim on Intl. Fund 1
Loans and discounts
Govt. loans and securities
Other assets
Note circulation
Deposits
Other liabilities and capital
Central Bank of Costa Rica (millions
of colones):
Gold
Foreign exchange
Net claim on Intl. Fund *
Loans and discounts
Securities
Other assets
Note circulation
Demand deposits
Other liabilities and capital
,
National Bank of Cuba (millions of
pesos):
Gold

1957
Dec.

Nov.

2,653 2,647 2,660
10,375 10,334 10,409
5,908 6,358 5,879
1,342 1,532 1,342
821
823
826
14,846 15,403 15,031
2,240 2,392 2,060
937
926
1,044
1,122 1,055
1,040
1,970 1,906 1,938
47,321
9,919
11,938
34,397
6,033
6,269
108,904
2,416
20
4,538

45,664
10,740
10,528
34,456
8,035
7,492
110,302
1,490
20
5,102

43,758
9,192
11,820
34,456
9,430
7,738
109,388
1,970
20
5,016
7,714
54,421
298,010
7,918
13,324
180,960
27,670
172,757

593
13
60
7
461
3
88
120

591
33
53
11
475
6
90
116

591
56
48
13
463
8
116
120

5,463
523
-2,044
13,902
30,864
56,896
40,161
77,292
8,466
4,444
55,562

5,765
707
-2,044
15,621
26,077
57,986
31,849
80,529
8,911
5,110
41,410

4,371
765
-1,356
15,914
26,011
55,741
24,682
70,532
6,481
3,070
46,110

310
52
1,524
629
298
1,008
1,016
789

358
52
1,491
630
328
1,203
864
792

319
52
1,399
626
299
983
905
806

12
71
7
150
15
34
179
52
57

12
54
7
168
15
30
182
48
56

12
47
7
155
15
33
163
48
58

136

136

136

Central bank, monetary unit,
and item
Jan.

1957
Dec.

Nov.

Jan.

99

142

146

150

148
-13
81
183
72
442
231
33

148
-13
72
170
71
468
226
32

163
-13
69
154
75
435
256
37

"53
106
74
429
228
24

68
959
229
419
2,981
754
2,302
1,448
1,374
286

68
975
252
491
2,982
708
2,432
1,461
1,308
276

68
828
156
485
3,002
827
2,276
1,473
1,346
271

68
669
205
495
3,050
882
2,238
1,477
1,378
277

11,405
10,562
2,500
8,990
7,500
26,096
53,127
10,489
3,436

11,405
13,052
2,500
10,508
7,830
26,073
55,149
12,323
3,897

11,405
13,831
2,500
4,921
7,830
25,759
50,412
11,919
3,914

11,396
10,463
2,500
6,888
8,030
19,551
48,375
7,379
3,074

325
79
-37
472
376
238
769
247
184
253

325
82
-37
466
349
269
745
222
170
317

325
47
38
489
254
240
694
232
170
296

66
80
190
-39
40
2
198
15
107
19

66
81
190
-40
42
4
207
12
102
20

66
89
190
-48
42
3
213
10
100
20

66
106
155
-7
41
2
222
11
3114
16

78,559
28,729
4,689
94,854
12,406
7,583
106,909
107,093
12,818

78,568
16,383
4,688
102,078
10,157
7,365
109,296
97,077
12,866

7,850
32,858
30,581
11,250
1,247
17,138
52,837
9,954
38,132

7,850
29,878
38,440
13,750
1,258
17,909
60,640
8,111
40,333

162

78,578 70,214
18,141 51,259
4,688 -4,676
92,276 87,429
9,323 18,097
9,087
7,364
99,587 114,683
99,358 102,726
13,148 12,278
7,850
30,098
31,683
16,250
1,451
16,697
57,477
7,069
39,481

7,849
20,178
39,094
17,500
1,755
10,515
54,160

7,952
34,779

136

r
Revised.
1 This figure represents the amount of the country's subscription to the
Fund less the bank's local currency liability to the Fund.
2
For last available reports for Czechoslovakia and Hungary (March
and February 1950, respectively), see BULLETIN for September 1950,
pp. 1262-63.




Jan.

National Bank of Cuba—Cont.
Foreign exchange (net)
Foreign exchange (Stabilization
Fund)
Net claim on Intl. Fund*
Loans and discounts
609
Credits to Government
13,758
Other assets
1,296
Note circulation
915
Deposits
1,196
Other liabilities and capital
1,717 N;
ational Bank of Czechoslovakia2
National Bank of Denmark (millions
of kroner):
43,852
Gold
10,707
Foreign exchange
10,764
Loans and discounts
34,605
Securities
7,491
Govt. compensation account
5,594
Other assets
109,773
Note circulation
1,792
Deposits—Government
20
Other
1,429
Other liabilities and capital
Central Bank of the Dominican Republic (thousands of pesos):
668
Gold
12,369
Foreign exchange (net)
196,069
Net claim on Intl. Fund 1
6,540
Loans and discounts
6,551
Govt. securities
159,457
Other assets
26,164
Note circulation
36,576
Demand deposits
Other liabilities and capital
Central Bank of Ecuador (millions of
736
sucres):
Gold
10
Foreign exchange (net)
7
Net claim on Intl. Fund*
444
Credits—Government
61
Other
159
Other assets
89
Note circulation
Demand deposits—Private banks.
Other
7,069
Other liabilities and capital
1,301 National Bank of Egypt (millions of
19 pounds):
6,866
Gold
18,370
Foreign a
e g assets
41,832
Ei
G
Egyptian Govt. securities
28,501
Clearing and other accounts (net).
61,443
Loans and discounts
6,984
Other assets
4,639
Note circulation
30,893
Deposits—Egyptian Government.
Other
Other liabilities and capital
343 Centri Reserve Bank of El Salvador
_..jral
52 (thousands of colones):
593
Gold
Foreign exchange (net). . .
637
231
Net claim on Intl. Fund*.
812
Loans and discounts
730
Govt. debt and securities
315
Other assets
Note circulation
Deposits
12
Other liabilities and capital
Jank of Finland (millions of markkaa):
70 Bi
7
Gold
110
Foreign assets and liabilities (net)
18
Loans and discounts
,
28
Securities—Government
153
Other
Other assets
56
Note circulation
,
36
Deposits
Other liabilities and capital
1,967
8,400
6,479
1,426

1958

3
Includes figure for Sudan Government.
NOTE.—All figures, including gold and foreign exchange, are compiled
from official reports of individual banks and are as of the last report date
of the month.

371

CENTRAL BANKS
PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued

Central bank, monetary unit,
and item

1958
Jan.

1957
Dec.

Nov.

J a r L.

German Federal Bank4 (millions of
German marks):
10 430 10 6 0 9 10 691
Gold
Foreign exchange
12, 990 13, 239 13, 436
1 033 1 573
Loans and discounts
Loans to Government
3, 433 4 , 813 3, 475
1 414
305 1 070
Other assets
16, 077 16, 133 16, 402
Note circulation
4 616 4
Denosits Government
631
/\
453
5, 397
7, 109
Banks
515
481
526
Other
2, 622
Other liabilities and capital
3 , 193 2, 757
Bank of Greece (millions of drachmae):
Gold and foreign exchange (net) .
5, 479
Loans and discounts
4, 949
Advances—Government . .
Other
5 749
9 600
Other assets
.
. . .
6 601
Note circulation
1, 158
Deposits—Government
Reconstruction and
680
relief accts
5 860
Other
1 689
Other liabilities and capital
Bank of Guatemala (thousands of
quetzales):
9 7 976
Gold
Foreicn exchange (net)
37 438
1 250
Gold contribution to Intl Fund
16 908
Rediscounts and advances
4? 959
Other assets
Circulation—Notes
62 082
/\
Coin
Deposits—Government .
. . .
Banks
Other liabilities a n d capital
National Bank of H u n g a r y 2
Reserve Bank of India (millions of

rupees) *
Issue department:
]
1 178
178
Gold at home and abroad
9 759
9
Foreicn securities
q 973
10 568
Indian Govt securities
318
1 331
Rupee coin
15 31? 15 068
Note circulation
Banking department*
207
165
Notes of issue department
Balances abroad
378
994
1?
?7
Bills discounted
360
350
Loans to Government
..
?
?
?15
Other assets
379
9 744
9 509
Deposits
•
1 585 1 472
Other liabilities and capital
Bank Indonesia (millions of rupiahs):
258
247
Gold and foreign exchange (net)..
1 170
843
Advances to Government.
19 ,287 18 919
810
801
Other assets
13 8 9 8 13 815
Note circulation
185
171
Deposits—ECA
799
4 199
Other
3 ,257 3 087
Other liabilities and capital
Bank Melli Iran (millions of rials):
4 533 4 533
Gold
1 040
1 0-10
Foreicn exchange
J
663
663
Gold contribution to Intl. Fund. .
7
7
Govt -secured debt
12 ,208 12 ,956
Govt. loans and discounts
Other loans and discounts
7 ,938 7 455
15 513
18
Other assets 5
1? 334 P 4 P
Note circulation . .
6 066
Deposits—Government
1 J 616 1 580
Banks
-155 18 983
Other
Special Account—Profits of reval7 ,110 7 ,110
uation
4 ,198 3 ,932
Other liabilities and capital
Central Bank of Ireland (thousands of
pounds):
9 646
9 646
Gold
. .
Sterling funds
73 ,188 77 ,530
75 ,834 80 ,176
Note circulation

q

704

23 401
25 502

1 178
809
q 8?3

1 351
14 787
367

Sank of Israel (millions of pounds):
Gold
Foreign exchange
Clearing accounts (net)
11, 808
1 770
Loans and discounts
4 , 037
P8
Other Govt. accounts
14, 173
Other assets
5 997
3 , 54?
Notes and coin in circulation
210
Other
2, 121
5, 901 Bank of Italy (billions of lire):
Gold
184
7, 238
4
Advances to Treasury
2 111
5 , 578

867
7 187
4 , 400
2 093

Note circulation

Bills and discounts
Other assets
Note circulation
178
4
Demand liabilities
. . .
g 401
Other liabilities and capital
238 N e t h e r l a n d s B a n k (millions of
14 855 guilders):
Gold
Silver (including subsidiary coin)..
236

816

1 9q9

426

9

1 526

DeDOsits—Government

532
79?
17 217
1
12 876
185
735
2 ,954

5^3

1 115

663

7 9?3
12 ,515
7 4oq
16
1? 416

544
4 949
599

282

7 6?3

Advances to State or State undertakings
Other assets
Note circulation

. .

..

Other liabilities and capital
12 480
6 343 Bank of Norway (millions of kroner):
r
4 61'
Gold
Foreign assets (net)
10 9 9 4

1 613
18

5 0d7
1
15 *291

7 110
3 ,827

3 ,378

9 646
75 ,115
77 ,761

2 646
69 ,461
72 ,107

56?

ECA.. . . : : : : : . : : : :

Other .
734
1 077
Other liabilities and capital
10 970 Reserve Bank of New Zealand (thou510 sands of pounds):
9 135
Gold
Foreign exchange reserve
98?
2 330

Dec.

Nov.

Loans and discounts
Occupation account (net)
Other assets
Note circulation
.
Deposits—Government
Banks
FOA
Other liabilities and capital

Jan.

6
88
-12
48
72
136
149
13

11
89
-7
33
118
65
152
9

250

?39

25
210
26

6
88
-12
52
78
131
149
7
243
24
206
25

29
189
32

30
189
13

4
71
567

4
71
567

4
71
567
475
406
'997
1 ,654
11
10?
600
'152

249

486
417

455
415

1,289
1,914
9

127
726
169

166
548
197

504
295
150

552
387
145

693

537
257
146

837

684

41
84

1,188
1,716
10
140
652
181

)

46
76

131

48
83
127

169
452
232
676
48
35
93

1,874

1 ,939

4,958
856
555
5 403
2 092

5 ,513
8?4
263
5 ,?03

748

2,995
11
985

2,812
10
996

76

Loans and discounts
Govt. debt and securities
Other assets

3

6
98
-11
43
88
130
149
6

1957

1,282
1,751
11

11
75
1 665

11

Jan.

445
416

Govt. securities

Demand
Other
Other liabilities and capital
Bank of Japan (billions of yen):
Bullion
27, ?38
Loans and discounts
40, 370
250
1,
Other assets
10 ?0?
41 161
Deposits—Government
57, 810
4 I'M
Other
5 959
Other liabilities
25, 357 Bank of Mexico (millions of pesos):
26, 956
"Authorized" holdings of secu-

839

1958

4
71
567

6 531

* On Aug. 1, 1957, the Land Central Banks and the Berlin Central
Bank were merged with the Bank of German States (Bank deutscher
Lander) and the latter became the German Federal Bank (Deutsche
Bundesbank).
5
Includes (1) gold and foreign exchange in banking department and
(2) in May 1957, the profit resulting from revaluation of gold from




Central bank, monetary unit,
and item

2,649
11
949

208

178

628
360
3,967
501
17
331
238

2 553
783
3 ,154

6
705
175

660
387
3,994
145
17
462
216

694
378
3 ,89?

6,162 6,162 6 162
12,798 11,467 20,126
42,222 36,960 35,088

6 ,16?
?7 ,?98
31 ,068

58,229
41,958
2,078
75,159
77,891
10,397

57,147
53,142
1,580
86,831
69,392
10,235

56,139
38,124
1 384
IS,211
68,827
9,919

50 ,880
53 ,173
1 ,398
71 ,959
87 ,187
10 ,834

206
177
-31
76
99

206
268
-33
84
100

210
203
-14
84
104

-63
110
106

5,545
178
3,236
1,262
522
1
1,230

685
375
4,203
292
17
351
223

5,545
182
3,469
1,068
638
1
1,176

5,545
134
3,273
1,451
327
1
1,215

368
613
?,39

?09

5 ,546

106
3 ,258
1 ,349
631
?6
967

.0275557 to .0117316 grams of fine gold per rial.
6
Holdings in each month were 448 million yen.
7 Includes gold, silver, and foreign exchange forming required reserve
(25 per cent) against notes and other demand liabilities.
For other notes see opposite page.

372

CENTRAL BANKS
PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued

Central bank, monetary unit,
and item

1958
Jan.

State Bank of Pakistan (millions of
rupees):
Issue department:
Gold at home and abroad
Foreign exchange—Approved. .
Other
Pakistan Govt. securities
India currency
Rupee coin
Notes in circulation
Banking department:
Notes of issue department
Bills discounted
Loans to Government
Other assets
Deposits
Other liabilities and c a p i t a l . . . .
Central Bank of Paraguay (millions of
guaranies):
Gold
Foreign exchange (net)
Net claim on Intl. Fund l
Loans and discounts
Govt. loans and securities
Other assets
Note and coin issue
Deposits—Government
Other
Other liabilities and capital
Central Reserve Bank of Peru (millions
of soles):
Gold and foreign exchange
Net claim on Intl. Fund*
Loans and discounts to b a n k s . . . .
Loans to Government
Other assets
Note circulation
Deposits
Other liabilities and capital
Central Bank of the Philippines
(millions of pesos):
Gold
Foreign exchange
Loans
Domestic securities
Other assets
Circulation—Notes
Coin
Demand deposits
Other liabilities and capital
Bank of Portugal (millions of escudos):
Gold
Foreign exchange (net)
Loans and discounts
Advances to Government
Other assets
Note circulation
Demand deposits—Government.
ECA
Other
Other liabilities and capital
South African Reserve Bank (millions
of pounds):
Gold
Foreign bills
Other bills and loans
Other assets
Note circulation
Deposits
Other liabilities and capital
Bank of Spain (millions of pesetas):
Gold
Silver
Govt. loans and securities
Other loans and discounts
Other assets
Note circulation
Deposits—Government
Other
Other liabilities and capital
r

116
752
57
2,138
430

45
3,442
95
138
885
971
148

1957
Dec.

Nov.

115
666
57
2,124
430
45
3,368

663
57
2,046
430
49
3,248

70
1
119
957
1,012
136

113
1
61
998
1,032
141

115

13
627
83
,630
730
313
1,346
423
291
1,334
225
67
1,253
1,801
122
2,505
723
240

194
117
786
171
708
87
306
179

195
67
1,215
1,735
164
2,433
670
273

11
175
116
785
168
745
8
241
182

40
173

64
754
168
711
87
228
173

5,961 5,993
13,505 13,500
1,785
1,811
1,365
1,365
2,333 2,384
12,206 11,785
1,922
1,686
19
ir
7,749
7,51 ;
3,54'
3,552
77
25
30

73
28
62
60
113
79
31

T
25
40
56
120
56
22

116
53
18

618
319
14,940
59,42'
69,27
63,83'
3,624
13,123
63,988

618
318
14,006
61,639
69,771
66,653
2,38.
12,366
64,948

618
323
14,572
59,43^
65,586
62,570
4,10^
14,611
59,248

Central bank, monetary unit,
and item
Jan.




Jan.

Bank of Sweden (millions of kronor):
Gold
Foreign assets
115
Net claim on Intl. Fund 1
1,067
Swedish Govt. securities and ad57
vances to National Debt Office 2.
1,683
Other domestic bills and advances.
430
Other assets
r
50
Note circulation
3,288
Demand deposits—Government. .
Other
115
Other liabilities and capital
1 Swiss National Bank (millions of
1 francs):
778
Gold
725
Foreign exchange
169
Loans and discounts
Other assets
Note circulation
11
Sight liabilities
503
Other liabilities and capital
53 Central Bank of the Republic of Turkey
1,605 (millions of pounds):
563
Gold
221
Foreign exchange and foreign
1,143
clearings
351
Loans and discounts
284
Securities
1,177
Other assets
Note circulation
Deposits—Gold
744
Other
67
Other liabilities and capital
753 Bank of the Republic of Uruguay (mil1,393 lions of pesos):
135
Gold
2,210
Silver
667
Advances to State and Govt.
214
bodies
Other loans and discounts
Other assets
45
Note circulation
356
Deposits—Government
85
Other
456
Other liabilities and capital
155 Central Bank of Venezuela (millions
672 of bolivares):
85
Gold
246
Foreign exchange (net)
92
Other assets
Note circulation
5,929
Deposits
13,970
Other liabilities and capital
1,248 National Bank of Federal People's Re1,370 public of Yugoslavia (billions of
1,864 dinars):
11,277
Gold
1,769
Gold contribution to Intl. Fund. .
90
Foreign assets
8,222
Loans (short-term)
3,024
Govt. debt (net)
Other assets
Notes and coin in circulation
80
Demand deposits
54
Foreign liabilities
24
Long-term liabilities (net)
46
Other liabilities and capital
110 Bank for International Settlements
78 (million's of Swiss gold francs):
16
Gold in bars
Cash on hand and with b a n k s . . . .
617
Rediscountable bills and accept323
ances (at cost)
15,785
Time funds at interest
48,538
Sundry bills and investments
57,322
Funds invested in Germany
53,642
Other assets
3,840
Demand deposits—Gold
13,701
Other
51,403
Long-term deposits: Special
Other liabilities and capital

Revised.
* Latest month available.
1 This figure represents the amount of the country's subscription to the
Fund less the bank's local currency liability to the Fund.
2
Includes small amount of nongovernment bonds.

1958

1957
Dec.

Nov.

Jan.

500
1,184
129

564
1,080
129

5,050
89
960
5,840
273
141
1,683

4,477
172
921
5,542
49
64
1,727

4,140
20
1,020
5,334
291
179
1,149

7,422
589
165
87
5,494
2,542
227

7,384
781
278
116
5,931
2,393
234

7,283
561
180
94
5,709
2,169
240

7,062
553
229
106
5,394
2,335
220

403

403

402

402

485
5,001
33
255
3,125
156
2,100
797

480
,052
33
272
,199
156
,103
783

461
5,153
33
264
3,345
156
2,027
786

229
4,084
30
241
2,459
155
1,733
639

483

474
1,213

1,227

129

129

4,761
11
922
5,547
277
41
1,646

(July)!
278

283
10

264
615
797
559
203
371
829
1,999
2,247
202
1,591
632
2,225

1,999
2,055
180
1,484
450
2,300

1,744
1,003
188
1,223
427
1,284

20
788
110

1,999
2,025
188
1,510
526
2,176

285
558
743
550
190
362
777

41
775
146
54
128
400
84
275
135

68
126
385
70
280
13:
525
51

505
59

586
197
552
297
1
509
1,152
229
319

496
165
596
297
1
553
1,018
229
317

438
52
637
151
601
297
1
547
1,084
229
316

5
2
37
728
31
39
90
290
80
272
111

618
65
559
57
539
297
2
611
994
229
304

NOTE.—All figures, including gold and foreign exchange, are compiled
from official reports of individual banks and are as of the last report date
of the month.

373

MONEY RATES
CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS 1
[Per cent per annum]
Central banks with new rates since June 1956
Month effective

In effect June 30,1956. 3 . 0
1956—Aug
Sept
Oct
Nov
Dec

5.5

3.0

Netherlands

Spain

Sweden

3.00

BelGergium France many

3.75

3.75

3 25

Switz- United
erKingland
dom
1.5

5.5

3.75

4 5

5 0

4.0
2.5

4.25
5 00

4.5

5.6

5.00
7 0

4.0

1958—Jan
Feb

3.5

In effect Feb. 28,1958. 4 . 5

5.00

4.50

3.5

5.0

4.50

El
Ja- Philip- ArgenSalpan 2 pines tina 2 Chile 2 Cuba 2 vador 2

3.00

3.25

8.03

3.50
33.77
3.92

4.00

3.5

1957_jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

India

1.5

3.5

4.5

3.5

3.0

3 25

4.25

5.0

Canada

3 50

3 95
4 01
3.95
4 00
4.01 H.OO
4 06
4.05
4 28
4.05
4 05
3.83
3.87

4.5
6 0

8.40

4.0

2 0

9.13

4.5

5.5

6.0

3 50
3 11
5.00

5.00

2.5

7.0

3.11

4.00

9.13

4.5

6.0

5.5

6.0

4.0

Other selected central banks—rates in effect on Feb. 28, 1958
Area and
country
Europe:
Austria
Denmark
Greece
Italy
Norway
Portugal

Rate

5.0
5.5
10.0
4.0
3.5
2.5

Month
effective

Nov.
May
May
Apr.
Feb.
Jan.

Area and
country

Rate

Europe—Cont. :
Turkey
Asia
Burma
Ceylon
Indonesia 2 ...
Pakistan

1955
1955
1956
1950
1955
1944

Month
effective

6.0

June 1956

3.0
2.5
3.0
3.0

Feb.
June
Apr.
July

1948
1954
1946
1948

1 Rates shown represent 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 more than one rate applicable to such discounts or advances, the
rate shown is the one at which the largest proportion of central bank
credit operations is understood to be transacted. In certain cases other
rates for these countries are given in the following note.
2
Discounts or advances at other rates include: Japan—various rates
depending on type of paper or transaction and extent of borrowing from
central bank, including 8.40 per cent for discount of paper related to domestic commercial transactions (rate shown is for advances on commercial
paper and miscellaneous collateral); Argentina—3 and 5 per cent for certain
rural and industrial paper, depending on type of transaction; Chile—

Rate

Area and
country
Asia—Cont. :
Thailand
Latin America:
Costa Rica 2 .
Mexico
Peru 2

Month
effective

Area and
country

7.0

Feb. 1945

3.0
4.5
6.0

Apr. 1939
June 1942
Nov. 1947

Rate

Latin America—
Cont. :
Venezuela... 2.0
All other:
New Zealand. 7.0
South Africa. 4.5

Month
effective

May 1947
Oct. 1955
Sept. 1955

rates in excess of 6 per cent are applied to rediscounts in excess of 50 per
cent of the rediscounting bank's capital and reserves; Cuba—-4.5 per cent
for sugar loans and 4 per cent for loans secured by national public
securities; El Salvador—3 per cent for agricultural and industrial paper;
Indonesia—various rates depending on type of paper, collateral, commodity involved, etc.; Costa Rica—5 per cent for paper related to commercial transactions (rate shown is for agricultural and industrial paper);
and Peru—4 per cent for industrial paper and mining paper, and 3 per
cent for most agricultural paper.
3
Since Nov. 1, the discount rate is set each week at ^4 per cent above the
latest average tender rate for Treasury bills.
4
Since May 16, this rate applies to advances against commercial paper
as well as against government securities and other eligible paper.

OPEN MARKET RATES
[Per cent per annum]

Month

France

United Kingdom

Canada
Treasury Day-today 2
bills
3 months 1 money

Bankers' Treasury Day-toacceptbills
day
ances
3 months 3 months money

Bankers'
allowance Day-today 3
on
deposits money

1955 Dec
1956 Dec

2.59
3.61

2.42
3.18

4.22
5.07

4.08
4.94

3.10
4.15

2.50
3.50

1957

3.76
3.71
3.72
3 77
3.80
3.81
4 02
3.94
3 84
3.66
3.65

3.48
3.65
3.69
3 71
3.80
3.72
3 88
2.96
3 57
3.52
3.60

4.30
4.07
4.01
3.84
3.87
3.85
3.97
5.42
6.60
6.54
6.43

3.66
3.55
3.59
3.48
3.45
3.45
3.60
4.33
5.53
5.63
5.67

3.54

3.34

4.44
4.25
4.18
4.04
4.08
4.06
4.17
5.40
6 81
6.78
6.67
6.51

6.27

5.56

Feb
Mar
Apr
May

June
July
Aug

Sept
Oct

Nov
Dec
1958—Jan

1 Based on average yield of weekly tenders during the month.
Based on weekly averages of daily closing rates.

2




Netherlands
Treasury Day-tobills
day
3 months money

Sweden

Switzerland

Loans
Private
up to
discount
3 months
rate
414-61/2
41/2-634

1.50
1.50

3.47
3.61
3.63
3.59
3.60
3.81
4.45
4.86
4.87
4.66
4.64

.62
3.23
2.85
3.50
3.50
2 88
2.70
3.08
3.51
3.64
3.75
3.35
3.33

4y2-6Y4
4y2-6y4
41/2-6%
41/2-634
41/2-634
534-8
534-8
534-8
534-8
534-8
534-8

1.75
1.75
1.75
1.75
2.50
2.50
2.50
2.50
2.50
2.50
2.50

4.43

3.50

534-8

2.50

1.06
3.48

3.10
3.00
3.00
3.00
3.00
3.00
3.00
3.80
5.00
5.00
5.00

2.99
3.55
3.52
4.10
4.61
5.19
5.78
7.82
7.94
5.77
4.94
4.87
5.72

5.00

5.17

3 Beginning January 1957, rate shown is on private securities. Previous
figures are averages of rates on government and private securities.

374

FOREIGN EXCHANGE RATES
FOREIGN EXCHANGE RATES
[Average of certified noon buying rates in New York for cable transfers.
Argentina
(peso)

Australia
(pound)

Year or month
Preferential

Basic

1952
1953
1954
1955
1956
1957

In cents per unit of foreign currency]

Austria
(schilling)

Belgium
(franc)

Canada
(dollar)

Ceylon
(rupee)

Denmark
(krone)

14.492

Free

20.000
13.333
20.000
13.333
20.000
13.333
20.000
13.333
15.556
5.556

7.163
7.198
7.198
7.183
22.835
2.506

222.63
224.12
223.80
222.41
222.76
222.57

3.8580
3.8580
3.8580
3.8580
3.8539

1.9878
2.0009
1.9975
1.9905
2.0030
1.9906

102.149
101.650
102.724
101.401
101.600
104.291

20.903
21.046
21.017
20.894
20.946
20.913

1957—Feb..
Mar.
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.

5.556
5.556
5.556
.556
.556
.556
.556
.556
.556
5.556
5.556

2.681
2.586
2.478
2.564
2 All
2.365
2.303
2.216
2.487
2.595
2.707

222.96
222.55
222.22
222.39
222.33
222.14
221.73
221.92
223.09
223.32
223.57

3.8536
3.8536
3.8536
3.8536
3.8536
3.8536
3.8536
3.8536
3.8536
3.8536
3.8536

1.9900
1.9900
1.9887
1.9862
1.9875
1.9908
1.9865
1.9874
1.9929
1.9983
1.9991

104.334
104.577
104.184
104.638
104.891
105.150
105.470
104.241
103.636
103.921
102.304

20.960
20.921
20.890
20.895
20.898
20.890
20.862
20.867
20.928
20.935
20.969

1958—Jan..
Feb..

5.556
5.556

2.696
2.656

224.16
224.36

3.8536
3.8536

1.9986
2.0024

101.535
101.934

21.045
21.078

Germany
(deutsche
mark)

India
(rupee)

Ireland
(pound)

Japan
(yen)

Malaysia
(dollar)

Mexico
(peso)

4.2376

23.838
23.765
23.786
23.798

20.922
21.049
21.020
20.894
20.934
20.910

279.68
281.27
280.87
279.13
279.57
279.32

.2779
.2779

32.601
32.595
32.641
32.624
32.582
32.527

11.588
11.607
9.052
8.006
8.006
8.006

20.947
20.913
20.890
20.896
20.896
20.884
20.844
20.858
20.940
20.951
20.975

279.81
279.30
278.89
279.10
279.02
278.78
278.27
278.51
279.98
280.26
280.58

.2779
.2779
.2779
.2779
.2779
.2779
.2779
.2779
.2779
.2779
.2779

32.561
32.532
32.512
32.526
32.523
32.495
32.431
32.448
32.556
32.580
32.644

8.006
8.006
8.006
8.006
8.006
8.006
8.006
8.006
8.006
8.006
8.006

Finland
(markka)

Year or month

France
(franc)

1952
1953
1954
1955
1956
1957

.4354
.4354
.4354
.4354
.4354
3.3995

.2856
.2856
.2856
.2856
.2855
4.2856

1957—Feb.,
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

.4354
.4354
.4354
.4354
.4354
.4354
.4354
3.3674
.3118
.3118
.3118

.2855
.2855
.2855
.2856
.2855
.2856
4.2857
.2858
.2858
.2858
.2858

4.2376
.2375
.2375
.2375
.2376

23.797
23.793
23.790
23.796
23.798
23.800
23.800
23.800
23.800
23.800
23,799

1958—Jan..
Feb..

.3118
.3118

.2858
.2858

.2376
.2375

23.795
23.795

21.050
21.099

281.32
281.57

.2779
.2779

32.769
32.818

8.006
8.006

Netherlands
(guilder)

NewZealand
(pound)

Norway
(krone)

Philippine
Republic
(peso)

Portugal
(escudo)

South
Africa
(pound)

Spain
(peseta)

Sweden
(krona)

Switzerland
(franc)

United
Kingdom
(pound)

1952
1953
1954
1955
1956
1957

26.315
26.340
26.381
26.230
26.113
26.170

276.49
278.48
278.09
276.36
276.80
276.56

14.015
14.015
14.008
14.008
14.008
14.008

49.675
49.676
49.677
49.677
49.676
49.693

3.4853
3.4887
3.4900
3.4900
3.4900
3.4900

278.20
280.21
279.82
278.09
278.52
278.28

19.326
19.323
19.333
19.333
19.333
19.331

23.148
23.316
23.322
23.331
23.334
23.330

279.26
281.27
280.87
279.13
279.57
279.32

1957—Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

26.111
26.119
26.137
26.134
26.106
26.121
26.103
26.102
26.287
26.363
26.367

277.04
276.54
276.12
276.33
276.26
276.02
275.52
275.75
277.21
277.49
277.80

14.008
14.008
14.008
14.008
14.008
14.008
14.008
14.008
14.008
14.008
14.008

49.687
49.695
49.695
49.695
49.695
49.695
49.695
49.695
49.695
49.695
49.695

3.4900
3.4900
3.4900
3.4900
3.4900
3.4900
3.4900
3.4900
3.4900
3.4900
3.4900

278.76
278.26
277.84
278.05
277.98
211.1A
277.23
277.47
278.94
279.21
279.53

19.333
19.333
19.333
19.333
19.333
19.333
19.329
19.328
19.328
19.328
19.328

23.308
23.318
23.329
23.335
23.335
23.332
23.335
23.335
23.335
23.335
23.335

279.81
279.30
278.89
279.10
279.02
278.78
278.27
278.51
279.98
280.26
280.58

1958—Jan..
Feb.

26.373
26.367

278.54
278.78

14.008
14.008

49.695
49.695

3.4900
3.4900

280.27
280.52

19.328
19.328

23.334
23.335

281.32
281.57

Year or month

23.838

1 Official rate. The basic and preferential rates were discontinued and
the new official rate of 18 pesos per U. S. dollar became effective Oct.
28, 1955.
2 New free market rate became effective Oct. 28, 1955.
3 Effective Sept. 16, 1957, the Finnish markka was devalued from 230
to 320 markkaa per U. S. dollar.




52.3810
2.3810

4
On Aug. 12, 1957, the French authorities established an effective rate
of 420 francs per U. S. dollar applicable to most foreign exchange transactions. Since Oct. 28, 1957, this rate has applied to all foreign exchange
transactions. The official rate remains at 350 francs per U. S. dollar.
5 Based on quotations beginning Jan. 2, 1958.

BOARD OF GOVERNORS
of the Federal Reserve System
W M . M C C . MARTIN, JR.,

Chairman

M. S. SZYMCZAK

C.

CANBY BALDERSTON,

A. L. MILLS, JR.

J. L. ROBERTSON

JAMES K. VARDAMAN, JR.

CHAS. N. SHEPARDSON

ELLIOTT THURSTON,

Assistant to the Board

WOODLIEF THOMAS,

Economic Adviser to the Board

WINFIELD

CHARLES MOLONY, Special

OFFICE OF THE SECRETARY

Vice Chairman

W. RIEFLER, Assistant to the Chairman
JEROME

W. SHAY, Legislative Counsel

Assistant to the Board
DIVISION OF BANK OPERATIONS

S. R. CARPENTER, Secretary

ROBERT F. LEONARD, Director

Assistant Secretary
KENNETH A. KENYON, Assistant Secretary
CLARKE L. FAUVER, Assistant Secretary

JOHN R. FARRELL, Assistant Director

MERRITT SHERMAN,

LEGAL DIVISION
HOWARD

GERALD

M. CONKLING, Assistant Director

M. B. DANIELS, Assistant Director
DIVISION OF EXAMINATIONS

H. HACKLEY, General Counsel

ROBERT C. MASTERS, Director

FREDERIC SOLOMON, Assistant General Counsel

C. C. HOSTRUP, Assistant Director
FRED A. NELSON, Assistant Director

B. HEXTER, Assistant General Counsel
G. HOWLAND CHASE, Assistant General Counsel
THOMAS J. O'CONNELL, Assistant General
Counsel
DAVID

ARTHUR H. LANG, Chief Federal Reserve

Examiner
M. GOODMAN, Assistant Director
HENRY BENNER, Assistant Director

GLENN

DIVISION OF RESEARCH AND STATISTICS
RALPH A. YOUNG, Director

DIVISION OF PERSONNEL ADMINISTRATION

R. GARFIELD, Adviser
E. NOYES, Adviser
ROLAND I. ROBINSON, Adviser

FRANK

EDWIN J. JOHNSON, Director

GUY

H. FRANKLIN SPRECHER, JR., Assistant Director

SUSAN S. BURR, Associate Adviser

R. KOCH, Associate Adviser
KENNETH B. WILLIAMS, Associate Adviser
LEWIS N. DEMBITZ, Research Associate

DIVISION OF ADMINISTRATIVE SERVICES

ALBERT

JOSEPH E. KELLEHER, Director

OFFICE OF DEFENSE LOANS
GARDNER

DIVISION OF INTERNATIONAL FINANCE
ARTHUR W. MARGET, Director
J. HERBERT FURTH, Associate Adviser
A. B. HERSEY, Associate Adviser
ROBERT L. SAMMONS, Associate Adviser




L. BOOTHE, II, Administrator

OFFICE OF THE CONTROLLER
J. J. CONNELL, Controller
SAMPSON H. BASS, Assistant Controller

375

376

FEDERAL RESERVE BULLETIN • MARCH 1958

Federal Open Market Committee
W M . M C C . MARTIN, JR.,

C. CANBY BALDERSTON
W. D. FULTON
WATROUS H. IRONS

Chairman
HUGH
H. N.
A. L.
J. L.

ALFRED HAYES,

LEACH
MANGELS
MILLS, JR.
ROBERTSON

Vice Chairman

CHAS. N. SHEPARDSON
M. S. SZYMCZAK
JAMES K. VARDAMAN, J R

WINFIELD W. RIEFLER, Secretary

L. MERLE HOSTETLER, Associate Economist

ELLIOTT THURSTON, Assistant Secretary
MERRITT SHERMAN, Assistant Secretary
HOWARD H. HACKLEY, General Counsel
FREDERIC SOLOMON, Assistant General Counsel
WOODLIEF THOMAS, Economist
J. DEWEY DAANE, Associate Economist

ARTHUR W. MARGET, Associate Economist
H. V. ROELSE, Associate Economist
CHARLS E. WALKER, Associate Economist
O. P. WHEELER, Associate Economist
RALPH A. YOUNG, Associate Economist
ROBERT G. ROUSE, Manager of System Open

Market Account

Federal Advisory Council
LLOYD D. BRACE, BOSTON
ADRIAN M. MASSIE, NEW YORK
CASIMIR A . SlENKIEWICZ, PHILADELPHIA
FRANK R. DENTON, CLEVELAND,

President
JOHN S. ALFRIEND, RICHMOND
JOHN A. SIBLEY, ATLANTA
HERBERT

V. PROCHNOW, Secretary

HOMER J. LIVINGSTON, CHICAGO,

Vice President
WlLLIAM A . MCDONNELL, ST. LOUIS
GORDON MURRAY, MINNEAPOLIS
R. CROSBY KEMPER, KANSAS CITY
WALTER B. JACOBS, DALLAS
FRANK L. KING, SAN FRANCISCO
WILLIAM

J. KORSVIK, Assistant Secretary

Federal Reserve Banks and Branches
District 1—FEDERAL RESERVE BANK OF BOSTON
BOARD OF DIRECTORS
Robert C. Sprague, Chairman and Federal Reserve Agent
Harvey P. Hood, Deputy Chairman
Stanley M. Cooper
Milton P. Higgins
Harry E. Umphrey
Oliver B. Ellsworth
William D. Ireland
Nils Y. Wessell
Arthur F. Maxwell
J. A. Erickson, President
D. H. Angney
Ansgar R. Berge
George H. Ellis

E. O. Latham, First Vice President
Vice Presidents
Benjamin F. Groot
Dana D. Sawyer
O. A. Schlaikjer

District 2—FEDERAL RESERVE BANK OF NEW YORK
BOARD OF DIRECTORS
John E. Bierwirth, Chairman and Federal Reserve Agent
Forrest F. Hill, Deputy Chairman
Charles W. Bitzer
Cyrus M. Higley
Howard C. Sheperd
Clarence Francis
Augustus C. Long
Lansing P. Shield
Franz Schneider




FEDERAL RESERVE BANKS AND BRANCHES

377

District 2—FEDERAL RESERVE BANK OF NEW YORK-Continued
Alfred Hayes, President

William F. Treiber, First Vice President
Vice Presidents
Robert V. Roosa
Robert G. Rouse
Walter H. Rozell, Jr.

H. A. Bilby
John Exter
M. A. Harris
H. H. Kimball
H. V. Roelse
Vernon Alexander
Leland B. Bryan

BUFFALO BRANCH—BOARD OF DIRECTORS
Daniel M. Dalrymple
Raymond E. Olson
Ralph F. Peo, Chairman

I. B. Smith, in charge
of Buffalo Branch
T. G. Tiebout
V. Willis
R. B. Wiltse
John W. Remington
E. Perry Spink

District 3—FEDERAL RESERVE BANK OF PHILADELPHIA
BOARD OF DIRECTORS
Henderson Supplee, Jr., Chairman and Federal Reserve Agent
Lester V. Chandler, Deputy Chairman
William B. Brosius
Walter E. Hoadley, Jr.
R. Russell Pippin
Bayard L. England
Lindley S. Hurff
Geoffrey S. Smith
Charles E. Oakes
Karl R. Bopp, President

Robert N. Hilkert, First Vice President
Vice Presidents
E. C. Hill
Wm. G. McCreedy

David P. Eastburn
Murdoch K. Goodwin

P. M. Poorman
J. V. Vergari
Richard G. Wilgus
District 4—FEDERAL RESERVE BANK OF CLEVELAND
BOARD OF DIRECTORS
Arthur B. Van Buskirk, Chairman and Federal Reserve Agent
Joseph H. Thompson, Deputy Chairman
Aubrey J. Brown
King E. Fauver
George P. MacNichol, Jr.
John A. Byerly
Joseph B. Hall
Paul A. Warner
Charles Z. Hardwick
W. D. Fulton, President
Dwight L. Allen
Roger R. Clouse
Clyde Harrell

Donald S. Thompson, First Vice President
Vice Presidents
L. Merle Hostetler
Martin Morrison
R. G. Johnson, in charge of
H. E. J. Smith
Cincinnati Branch
Paul C. Stetzelberger
J. W. Kossin, in charge of
Pittsburgh Branch

CINCINNATI BRANCH—BOARD OF DIRECTORS
Roger Drackett
W. Bay Irvine
Anthony Haswell, Chairman
Ivan Jett
Franklin A. McCracken
Lawrence O. Hotchkiss
Frank C. Irvine
Douglas M. Moorhead




PITTSBURGH BRANCH—BOARD OF DIRECTORS
Ben Moreell
Sumner E. Nichols

William A. Mitchell
Thomas M. Wolfe

John C. Warner,
Chairman
Irving W. Wilson

378

FEDERAL RESERVE BULLETIN • MARCH 1958
District 5—FEDERAL RESERVE BANK OF RICHMOND

BOARD OF DIRECTORS
John B. Woodward, Jr., Chairman and Federal Reserve Agent Alonzo G. Decker, Jr., Deputy Chairman
D. W. Colvard
Robert Gage

Joseph E. Healy
L. Vinton Hershey
Robert O. Huffman
Hugh Leach, President

N. L. Armistead
R. L. Cherry, in charge of
Charlotte Branch
J. Dewey Daane

Denver L. Morgan
W. A. L. Sibley

Edw. A. Wayne, First Vice President
Vice Presidents
D. F. Hagner, in charge of
J. M. Nowlan
Baltimore Branch
James M. Slay
Aubrey N. Heflin
Thomas I. Storrs
Upton S. Martin
C. B. Strathy

BALTIMORE BRANCH—BOARD OF DIRECTORS
Gordon M. Cairns
James W. McElroy
Wm. Purnell Hall, Chairman
J. N. Shumate
John W. Stout

Stanley B. Trott
Clarence R. Zarfoss

CHARLOTTE BRANCH—BOARD OF DIRECTORS

George H. Aull
William H. Grier, Chairman

Charles D. Parker
Ernest Patton
I. W. Stewart

G. G. Watts
T. Henry Wilson

District 6—FEDERAL RESERVE BANK OF ATLANTA
BOARD OF DIRECTORS
Walter M. Mitchell, Chairman and Federal Reserve Agent
Harllee Branch, Jr., Deputy Chairman
Roland L. Adams
William C. Carter
Joseph T. Lykes
Pollard Turman
Henry G. Chalkley, Jr.
W. C. Bowman
Donald Comer
Malcolm Bryan, President
J. E. Denmark
H. C. Frazer, in charge of
Birmingham Branch
T. A. Lanford, in charge of
Jacksonville Branch
John L. Liles, Jr.
Robert M. Cleckler
John R. Downing

Lewis M. Clark, First Vice President
Vice Presidents
J. E. McCorvey
R. E. Moody, Jr., in charge
of Nashville Branch
Harold T. Patterson

BIRMINGHAM BRANCH—BOARD OF DIRECTORS
E. W. McLeod
John C. Persons
Selden Sheffield

L. B. Raisty
Earle L. Rauber
S. P. Schuessler
M. L. Shaw, in charge
of New Orleans
Branch
John E. Urquhart, Chairm
Adolph Weil, Sr.

JACKSONVILLE BRANCH—BOARD OF DIRECTORS

Linton E. Allen
W. E. Ellis




James G. Garner
C. B. McLeod
J. Wayne Reitz

Harry M. Smith, Chairmai
McGregor Smith

379

FEDERAL RESERVE BANKS A N D BRANCHES
District 6—FEDERAL RESERVE BANK OF ATLANTA-Coattnued
NASHVILLE BRANCH—BOARD OF DIRECTORS
Jo H. Anderson
Stewart Campbell

Frank B. Ward, Chairman
C. L. Wilson

P. D. Houston, Jr.
V. S. Johnson, Jr.
W. N. Krauth
NEW ORLEANS BRANCH—BOARD OF DIRECTORS

William J. Fischer
Frank A. Godchaux, III

J. Spencer Jones
G. H. King, Jr., Chairman
D. U. Maddox

H. A. Pharr
E. E. Wild

District 7—FEDERAL RESERVE BANK OF CHICAGO
BOARD OF DIRECTORS
Bert R. Prall, Chairman and Federal Reserve Agent
Robert P. Briggs
William J. Grede
Walter J. Cummings
William A. Hanley
Vivian W. Johnson
Carl E. Allen, President
Neil B. Dawes
W. R. Diercks
A. M. Gustavson
Paul C. Hodge

J. Stuart Russell, Deputy Chairman
G. F. Langenohl
Nugent R. Oberwortmann

E. C. Harris, First Vice President
Vice Presidents
C. T. Laibly
A. L. Olson
George W. Mitchell
R. A. Swaney, in charge
of Detroit Branch
H. J. Newman
W. W. Turner

DETROIT BRANCH—BOARD OF DIRECTORS
John A. Hannah, Chairman
William A. Mayberry

Ira A. Moore
C. V. Patterson
Raymond T. Perring

Ernest W. Potter
J. Thomas Smith

District 8—FEDERAL RESERVE BANK OF ST. LOUIS
BOARD OF DIRECTORS

J. H. Longwell, Deputy Chairman
Pierre B. McBride, Chairman and Federal Reserve Agent
Leo J. Wieck
S. J. Beauchamp, Jr.
Kenton R. Cravens
H. Lee Cooper
J. E. Etherton
Jesse D. Wooten
Harold O. McCutchan
Delos C. Johns, President
Wm. J. Abbott, Jr.
Fred Burton, in charge of

Little Rock Branch

R. H. Alexander
Donald Barger




Guy S. Freutel, First Vice President
Vice Presidents
Darryl R. Francis, in charge

of Memphis Branch
Donald L. Henry, in charge
of Louisville Branch

LITTLE ROCK BRANCH—BOARD OF DIRECTORS
T. Winfred Bell, Chairman
J. W. Bellamy, Jr.
E. C. Benton

Geo. E. Kroner
Dale M. Lewis
H. H. Weigel
J. C. Wotawa
J. V. Satterfield, Jr.
Waldo E. Tiller

380

FEDERAL RESERVE BULLETIN • MARCH 1958
District 8—FEDERAL RESERVE BANK OF ST. LOUIS-Continued
LOUISVILLE BRANCH—BOARD OF DIRECTORS
Merle E. Robertson
John G. Russell

Magnus J. Kreisle
W. Scott Mclntosh
J. D. Monin, Jr.

David F. Cocks, Chairman
Philip Davidson

MEMPHIS BRANCH—BOARD OF DIRECTORS
S. L. Kopald, Jr.
Simpson Russell
Frank Lee Wesson, Chairman

John E. Brown
J. H. Harris

John D. Williams
John K. Wilson

District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS
BOARD OF DIRECTORS
Leslie N. Perrin, Chairman and Federal Reserve Agent
John E. Corette
Thomas G. Harrison
F. Albee Flodin
Ray C. Lange
John A. Moorhead
Frederick L. Deming, President

O. B. Jesness, Deputy Chairman
Harold C. Refling
Harold N. Thomson

A. W. Mills, First Vice President
Vice Presidents
H. G. McConnell
M. H. Strothman, Jr.
Sigurd Ueland

M. B. Holmgren
A. W. Johnson

Kyle K. Fossum, in charge
of Helena Branch
C. W. Groth

HELENA BRANCH—BOARD OF DIRECTORS
J. Willard Johnson
O. M. Jorgenson

Geo. N. Lund
Carl McFarland, Chairman

John M. Otten

District 10—FEDERAL RESERVE BANK OF KANSAS CITY
BOARD OF DIRECTORS
Raymond W. Hall, Chairman and Federal Reserve Agent
K. S. Adams
E. M. Dodds
W. L. Bunten
W. S. Kennedy
Harold Kountze
H. G. Leedy, President
John T. Boysen
George H. Clay
P. A. Debus, in charge
of Omaha Branch
Joseph S. Handford

Joe W. Seacrest, Deputy Chairman
Max A. Miller
Oliver S. Willham

Henry O. Koppang, First Vice President
Vice Presidents
R. L. Mathes, in charge
of Oklahoma City Branch

Cecil Puckett, in charge
of Denver Branch
E. U. Sherman
Clarence W. Tow
D. W. Woolley

DENVER BRANCH—BOARD OF DIRECTORS
Stewart Cosgriff
Arthur Johnson

Ralph S. Newcomer

Aksel Nielsen, Chairman
Ray Reynolds

OKLAHOMA CITY BRANCH—BOARD OF DIRECTORS
Davis D. Bovaird, Chairman
Phil H. Lowery




R. Otis McClintock

C. L. Priddy
C. P. Stuart

381

FEDERAL RESERVE BANKS AND BRANCHES
District 10—FEDERAL RESERVE BANK OF KANSAS CITY-Continued
C. Wheaton Battey
George J. Forbes

OMAHA BRANCH—BOARD OF DIRECTORS
Manville Kendrick
William N. Mitten

James L. Paxton, Jr.,
Chairman

District 11—FEDERAL RESERVE BANK OF DALLAS
BOARD OF DIRECTORS
Robert J. Smith, Chairman and Federal Reserve Agent
John R. Alford
John M. Griffith
Lamar Fleming, Jr.
D. A. Hulcy
J. Edd McLaughlin
Watrous H. Irons, President
E. B. Austin
Howard Carrithers, in charge
of El Paso Branch
J. L. Cook, in charge of
Houston Branch

Hal Bogle, Deputy Chairman
J. B. Thomas
Sam D. Young

W. D. Gentry, First Vice President
Vice Presidents
T. W. Plant
W. E. Eagle, in charge of
L. G. Pondrom
San Antonio Branch
Morgan H. Rice
T. A. Hardin
Harry A. Shuford
W. H. Holloway
C. E. Walker

F. W. Barton
John P. Butler

EL PASO BRANCH—BOARD OF DIRECTORS
Floyd Childress
William R. Mathews
Thomas C. Patterson

I. F. Betts
L. R. Bryan, Jr.

HOUSTON BRANCH—BOARD OF DIRECTORS
W. B. Callan
A. E. Cudlipp
John C Flanagan, Chairman

Clarence E. Ayres
J. W. Beretta

SAN ANTONIO BRANCH—BOARD OF DIRECTORS
E. C. Breedlove
Burton Dunn
Donald D. James

D. F. Stahmann
E. J. Workman,
Chairman

S. Marcus Greer
Tyrus R. Timm

Alex R. Thomas,
Chairman
Harold Vagtborg

District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO
BOARD OF DIRECTORS
A. H. Brawner, Chairman and Federal Reserve Agent
Y. Frank Freeman, Deputy Chairman
Carroll F. Byrd
Walter S. Johnson
Reese H. Taylor
M. Vilas Hubbard
N. Loyall McLaren
Philip I. Welk
John A. Schoonover
H. N. Mangels, President
E. R. Barglebaugh, in charge of
Salt Lake City Branch
J. M. Leisner, in charge of
Seattle Branch
E. R. Millard




Eliot J. Swan, First Vice President
Vice Presidents
R. H. Morrill
H. F. Slade
John A. O'Kane
W. F. Volberg,
J. A. Randall, in charge of
in charge of
Portland Branch
Los Angeles Branch
O. P. Wheeler

382

FEDERAL RESERVE BULLETIN • MARCH 1958
District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO-Coathmed
LOS ANGELES BRANCH—BOARD OF DIRECTORS

Anderson Borthwick
Robert J. Cannon

Leonard K. Firestone,
Chairman

Joe D. Paxton
James E. Shelton

PORTLAND BRANCH—BOARD OF DIRECTORS
Warren W. Braley
J. H. McNally

John B. Rogers

William H. Steiwer, Sr., Chairman
C. B. Stephenson

SALT LAKE CITY BRANCH—BOARD OF DIRECTORS
George S. Eccles
Russell S. Hanson

Oscar Hiller

Joseph Rosenblatt, Chairman
Geo. W. Watkins

SEATTLE BRANCH—BOARD OF DIRECTORS
Henry N. Anderson
James Brennan




Lyman J. Bunting,
Chairman

Joshua Green, Jr.
S. B. Lafromboise

Federal Reserve Board Publications
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appeared on pages 1447-50 of the December 1957 Bulletin.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND
FUNCTIONS. April 1954. 208 pages.

THE FEDERAL RESERVE ACT, as amended through

December 31, 1956, with an Appendix containing provisions of certain other statutes affecting the Federal Reserve System. 385 pages.

ANNUAL REPORT OF THE BOARD OF GOVERNORS
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FEDERAL RESERVE BULLETIN.

FLOW OF FUNDS IN THE UNITED STATES, 1939-53.

A new accounting record designed to picture
the flow of funds through the major sectors of
the national economy. December 1955. 390
pages. $2.75.
THE DEVELOPMENT OF BANK DEBITS AND CLEARINGS AND THEIR USE IN ECONOMIC ANALYSIS.

January 1952. 175 pages. 25 cents per copy;
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A STATISTICAL STUDY OF REGULATION V LOANS.

FEDERAL RESERVE CHART BOOK ON FINANCIAL
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BANKING AND MONETARY STATISTICS. Statistics of

banking, monetary, and other financial developments. November 1943. 979 pages. $1.50.
RULES OF ORGANIZATION AND RULES OF PROCE-

DURE—Board of Governors of the Federal Reserve System. 1946. 31 pages.

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REGULATIONS OF THE BOARD OF GOVERNORS OF
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ADMINISTRATIVE INTERPRETATIONS OF REGULATION F—SECTION 17—COMMON TRUST FUNDS.

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CONSUMER INSTALMENT CREDIT—Six books (Parts I-IV) giving the results of an intensive study of

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Part I—Growth and Import, Volume 1, $1.25; Volume 2, $1.00
Part II—Conference on Regulation, Volume 1, $1.75; Volume 2, $.60
Part III—Views on Regulation, $1.00
Part IV—Financing New Car Purchases, $.60
Requests and remittances for these six books should be directed to the Superintendent of Documents,
Government Printing Office, Washington 25, D. C.




383

384

FEDERAL RESERVE BULLETIN • MARCH 1958
REPRINTS

AGRICULTURAL LOAN SURVEY.

{From Federal Reserve Bulletin unless preceded
by an asterisk)

November 1956

and January, February, and March 1957 BULLETINS. 52 pages.
UNITED STATES BANKING ORGANIZATION ABROAD.

THE MONETARY SYSTEM OF THE UNITED STATES.

February 1953. 16 pages.
INFLUENCE OF CREDIT AND MONETARY MEASURES
ON ECONOMIC STABILITY. March 1953. 16

pages.
STABILITY.

May 1953. 7 pages.

April 1953. 25 pages.

vember 1953. 65 pages.

96 pages.

NEW INDEXES OF OUTPUT OF CONSUMER D U -

COMPANIES,

MID-1955.

OWNERSHIP OF DEMAND DEPOSITS.

May 1957.

1956. June
6 pages. (Also, similar reprint from

SURVEY OF COMMON TRUST FUNDS,

1957.

INTEREST RATES IN LEADING COUNTRIES.

1957.

August

7 pages.

WINNING THE BATTLE AGAINST INFLATION.

Au-

gust 1957. 12 pages.

May 1954. 15 pages.

SEASONAL ADJUSTMENT FACTORS FOR DEMAND
DEPOSITS ADJUSTED AND CURRENCY OUTSIDE
BANKS. March 1955. 4 pages.
A FLOW-OF-FUNDS SYSTEM OF NATIONAL ACCOUNTS, ANNUAL ESTIMATES, 1939-54. Octo-

ber 1955. 40 pages.
SURVEY OF BANK LOANS FOR COMMERCIAL AND
INDUSTRIAL PURPOSES.
Business Loans of

Member Banks. April 1956. 14 pages. Credit
Lines and Minimum Balance Requirements.
June 1956. 7 pages. (Reprints on a similar
Survey are available from March, May, June,
July, and August 1947 BULLETINS.)
1951-55

REVISION OF CONSUMER CREDIT STATISTICS.

Oc-

tober 1956. 24 pages. (Also similar reprint
from April 1953 BULLETIN.)
INDEX OF ELECTRICITY AND GAS OUTPUT.

WORLD PAYMENTS STRESSES IN

1957.

1956-57. October

8 pages.

REVISION OF MONTHLY DEPARTMENT STORE IN-

DEXES. December 1957. 30 pages.
BANKING AND MONETARY STATISTICS, 1957.

(Se-

lected series of banking and monetary statistics
for 1957 only) February 1958. 7 pages. (Similar reprints of 1954, 1955, and 1956 data,
February and May 1955, February and May
1956, and February and May 1957 BULLETINS.)
BANK CREDIT AND MONEY IN 1957.

February

1958. 9 pages. (Also, similar reprint from
July 1957 BULLETIN.)
SEASONAL FACTORS AFFECTING BANK RESERVES.

June 1956. 9 pages.

ber 1956. 15 pages.

OF FINANCE

April 1957. 17 pages.

August 1956 BULLETIN.)

FEDERAL RESERVE MONTHLY INDEX OF INDUSTRIAL PRODUCTION, 1953 Revision. December

FINANCING OF LARGE CORPORATIONS,

SURVEY

6 pages.

DEPARTMENT STORE SALES AND STOCKS, BY
MAJOR DEPARTMENTS (Revised Indexes). No-

RABLE GOODS.

SUMMARY FLOW-OF-FUNDS ACCOUNTS 1950-55.

April 1957. 20 pages.

* DETAILED DESCRIPTION OF SOURCES AND METHODS USED IN REVISION OF SHORT- AND INTERMEDIATE-TERM CONSUMER CREDIT STATISTICS.




1957 SURVEY OF CONSUMER FINANCES. March,
June, and August 1957. 54 pages. (Similar
Surveys are available for earlier years from
1952, 1953, 1954, 1955, and 1956 BULLETINS.)

FEDERAL FINANCIAL MEASURES FOR ECONOMIC

1953.

December 1956. 16 pages.

Octo-

February 1958. 12 pages.
INTERNATIONAL

GOLD

AND DOLLAR

FLOWS.

March 1958. 7 pages.
1958 SURVEY OF CONSUMER FINANCES. PRELIMINARY FINDINGS. March 1958. 4 pages.

Index to Statistical Tables
Acceptances, bankers', 322, 323
Agricultural loans of commercial banks, 318, 320
Agriculture, Govt. agency loans, 326, 327
Assets and liabilities (See also Foreign liabilities and
claims reported by banks):
Banks and the monetary system, consolidated, 314
Corporate, current, 334
Domestic banks, by classes, 315, 318, 320
Federal business-type activities, by fund or activity, 326, 327
Federal Reserve Banks, 309, 310
Foreign central banks, 368
Automobiles:
Consumer instalment credit, 338, 339, 340
Production index, 344, 348
Bankers' balances, 319, 321
(See also Foreign liabilities and claims reported
by banks)
Banks and the monetary system, consolidated statement, 314
Bonds (See also U. S. Govt. securities):
New issues, 332, 334
Prices and yields, 323, 324
Brokers and dealers in securities, bank
loans to, 318, 320
Business expenditures on new plant and equipment, 334
Business indexes, 342
Business loans (See Commercial and industrial loans)
Capital accounts:
Banks, by classes, 315, 319, 321
Federal Reserve Banks, 309, 310
Carloadings, 342
Central banks, foreign, 366, 368, 373
Coins, circulation of, 313
Commercial banks:
Assets and liabilities, 315, 318
Consumer loans held, by type, 339
Number, by classes, 315
Real estate mortgages held, by type, 335
Commercial and industrial loans:
Commercial banks, 318
Weekly reporting member banks, 320, 322
Commercial paper, 322, 323
Commodity Credit Corporation, loans, etc., 326, 327
Condition statements (See Assets and liabilities)
Construction, 342, 348, 349
Consumer credit:
Instalment credit, 338, 339, 340, 341
Major parts, 338, 340
Noninstalment credit, by holder, 339
Consumer durable goods output indexes, 348
Consumer price indexes, 342, 354
Consumption expenditures, 356, 357
Corporate sales, profits, taxes, and dividends, 333, 334
Corporate security issues, 332, 334
Corporate security prices and yields, 323, 324
Cost of living (See Consumer price indexes)
Currency in circulation, 305, 313
Customer credit, stock market, 324
Debits to deposit accounts, 312
Demand deposits:
Adjusted, banks and the monetary system, 314
Adjusted, commercial banks, by classes, 319
Banks, by classes, 315, 321
Type of holder, at commercial banks, 319




Department stores:
Merchandising data, 353
Sales and stocks, 342, 352
Deposits (See also specific types of deposits):
Adjusted, and currency, 314
Banks, by classes, 315, 319, 321
Federal Reserve Banks, 309, 310, 364
Postal savings, 314
Turnover of, 312
Deposits, reserves, and borrowings, by class of member bank, 307
Discount rates, 308, 373
Discounts and advances by Federal Reserve
Banks, 305, 309
Dividends, corporate, 333, 334
Dollar assets, foreign, 364, 365
Dwelling units started, 349
Earnings and hours, manufacturing industries, 342, 351
Employment, 342, 350, 351
Export-Import Bank, loans, etc., 326, 327
Farm mortgage loans, 326, 335, 336
Federal business-type activities, assets and liabilities
by fund or activity, 326, 327
Federal Deposit Insurance Corporation,
assets, etc., 326, 327
Federal finance:
Cash transactions, 328
Receipts and expenditures, 321
Treasurer's balance, 328
Federal home loan banks, loans, etc., 326, 327, 337
Federal Housing Administration,
loans, etc., 326, 327, 335, 336, 337
Federal National Mortgage Association,
loans, etc., 326, 327, 337
Federal Reserve Banks:
Condition statement, 309, 310
U. S. Govt. securities held
by, 305, 309, 310, 330, 331
Federal Reserve credit, 305, 309, 310
Federal Reserve notes, 309, 310, 311, 313
Finance company paper, 322, 323
Foreign central banks, 366, 368, 373
Foreign deposits in U. S.
banks, 305, 309, 310, 314, 319, 321
Foreign exchange rates, 374
Foreign liabilities and claims reported by
banks, 360, 362, 364
Foreign trade, 353
Gold:
Earmarked, 365
Net purchases by U. S., 365
Production, 364, 365
Reserves of central banks and governments, 366
Reserves of foreign countries and international
institutions, 367
Stock, 305, 314, 365
Gold certificates, 309, 310, 311, 313
Govt. debt (See U. S. Govt. securities)
Gross national product, 356, 357
Home owners, Govt. agency loans, 326, 327
Hours and earnings, manufacturing industries, 342, 351
Industrial advances by Federal Reserve
Banks, 309, 310, 311, 312

385

386

FEDERAL RESERVE BULLETIN • MARCH 1958

Industrial production indexes, 342, 343, 348
Instalment loans, 338, 339, 340, 341
Insurance companies, 325, 330, 331, 336
Insured commercial banks, 317, 318
Interbank deposits, 315, 319, 321
Interest rates:
Bond yields, 323
Business loans by banks, 323
Federal Reserve rates, 308, 312
Foreign countries, 373
Open market, 323, 373
Regulation V loans, 312
Stock yields, 323
International capital transactions of the U. S., 360
International financial institutions, 366, 367, 368
Inventories, 357
Investments (See also specific types of investments):
Banks, by classes, 315, 318, 320
Federal Reserve Banks, 309, 310
Govt. agencies, etc., 326, 327
Life insurance companies, 325
Savings and loan associations, 325
Labor force, 350
Loans (See also specific types of loans) :
Banks, by classes, 315, 318, 320
Federal Reserve Banks, 305, 307, 309, 310,
311, 312
Govt. agencies, etc., 326, 327
Insurance companies, 325, 336
Savings and loan associations, 325, 336
Loans insured or guaranteed, 311, 335, 336, 337
Manufacturers, production indexes, 342, 343, 348
Margin requirements, 308
Member banks:
Assets and liabilities, by classes, 315, 318
Borrowings at Federal Reserve Banks, 305, 307
Deposits and reserves, by classes, 307
Number, by classes, 315
Reserve requirements, by classes, 308
Reserves and related items, 305
Weekly reporting series, 320
Minerals, production indexes, 342, 343
Money rates (See Interest rates)
Mortgages (See Real estate loans)
Mutual savings banks, 314, 315, 317, 330,
331, 335
National banks, 317
National income, 356
National security expenditures, 329, 357
Nonmember banks, 309, 317, 318
Payrolls, manufacturing, index, 342
Personal income, 357
Postal Savings System, 314
Prices:
Consumer, 342, 354
Security, 324
Wholesale commodity, 342, 354
Production, 342, 343, 347, 348
Profits, corporate, 333, 334
Real estate loans:
Commercial banks, 318, 320, 335




Real estate loans—Continued
Type of mortgage holder, 335, 336, 337
Type of property mortgaged, 335, 336, 337
Regulation V, loan guarantees, 311, 312
Reserve requirements, member banks, 308
Reserves:
Commercial banks, 319
Federal Reserve Banks, 309, 310
Foreign central banks and governments, 366
Foreign countries and international institutions, 367
Member banks, 305, 307, 309, 310, 319, 321
Residential mortgage loans, 335, 336, 337
Sales finance companies, consumer
loans of, 338, 339, 341
Savings, 356
Savings deposits (See Time deposits)
Savings institutions, principal assets, 325
Savings and loan associations, 325, 326
Securities, international transactions, 363, 364
Security issues, 332, 334
Silver coin and silver certificates, 313
State member banks, 317
State and municipal securities:
New issues, 332
Prices and yields, 323, 324
States and political subdivisions:
Deposits of, 319, 321
Holdings of U. S. Govt. securities, 330
Ownership of obligations of, 318, 325
Stock market credit, 324
Stocks:
New issues, 332
Prices and yields, 323, 324
Tax receipts, Federal, 329
Time deposits, 307, 314, 315, 319, 321
Treasurer's account balance, 328
Treasury cash, 305, 314
Treasury currency, 305, 313, 314
Treasury deposits, 305, 309, 310, 328
Unemployment, 350
U. S. Govt. balances:
Commercial bank holdings, by classes, 319, 321
Consolidated monetary statement, 314
Treasury deposits at Federal Reserve
Banks, 305, 309, 310, 328
U. S. Govt. securities:
Bank holdings, 314, 315, 318, 320, 330, 331
Federal Reserve Bank holdings, 305, 309, 310,
330, 331
Foreign and international holdings, 367
International transactions, 363
New issues, gross proceeds, 332
Outstanding, by type of security, 330, 331
Ownership of, 330, 331
Prices and yields, 323, 324
United States notes, outstanding and in circulation, 313
Utility output index, 347
Veterans Administration, loans, etc., 326, 327, 335,
336, 337
Yields (See Interest rates)

( THE FEDERAL RESERVE SYSTEM °)
o
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