Full text of Federal Reserve Bulletin : March 1975
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
M A R C H 1975 FEDERAL RESERVE BULLETIN A co p y o f the F ed eral R eserv e B u l l e t i n is sent to each m em b er bank w ith o u t ch arg e; m em ber banks desirin g ad d itio n al c o p ies m ay secu re them at a special $ 1 0 .0 0 annual rate. T he reg u lar subscrip tio n price in the U nited States and its p o sse ssio n s, and in B o livia, C an a d a , C h ile , C o lo m b ia , C o sta R ica, C u b a, D om inican R ep u b lic, E c u a d o r, G u a tem ala , H aiti, R ep u b lic o f H o n d u ras, M exico, N icarag u a, P an am a, P a ra g u a y , P eru, El S alv ad o r, U ru g u a y , and V en ezu ela is $ 2 0 .0 0 per annum or $ 2 .0 0 p er c o p y ; e lse w h e re , $ 2 4 .0 0 per annum or $ 2 .5 0 per co p y . G ro u p su b scrip tio n s in th e U nited S tates fo r 10 o r m ore co p ies to one a d d re ss, $1 .7 5 per c o p y p e r m o n th , o r $ 1 8 .0 0 fo r 12 m onths. T he B u l l e t i n m ay be o b tain ed from the D iv ision of A dm in istrativ e S e rv ic e s, B oard of G o v e rn o rs of the Federal R eserv e S y stem , W ash in g to n , D .C . 2 0 5 5 1 , and re m ittance should be m ade pay ab le to the ord er o f the B oard o f G o v e rn o rs o f the Federal R eserve S ystem in a form co llectib le at par in U .S . cu rren cy . (S tam p s and c o u p o n s are not a cc e p te d .) FEDERAL RESERVE BULLETIN NUMBER 3 □ V O L U M E 61 □ M A R C H 1975 C O N T E N T S 121 Financial D evelopm ents in the Fourth Quarter of 1974 A 1 Financial and B usiness Statistics 129 Survey of Bank R esponse to Federal A dvisory Council Statement on Lending P olicies 131 Treasury and Federal Reserve Foreign Exchange Operations 150 Statem ents to Congress A A A A A 1 C ontents 3 G uide to T abular P resentation 3 S ta tistica l R eleases: R eference 4 U .S. S tatistics 60 International S ta tistics A 84 Board of Governors and Staff A 86 Open Market Com m ittee and Staff; Federal A dvisory Council 167 Law Department A 87 Federal R eserve Banks and Branches 183 Announcem ents A 88 Federal Reserve Board Publications 185 Industrial Production A 90 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover E D IT O R IA L C O M M IT T E E J. Charles Partee Ralph C. Bryant L yle E. Gramley Joseph R. C oyne Robert Solom on Elizabeth B . Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Financial Developm ents in the F o urth Q u arter o f 1 9 7 4 This report, which was sent to the Joint E co nomic Committee of the U.S. Congress on Feb ruary 22, 1975, highlights the important devel opments in financial markets during the fall and early winter. Credit conditions eased substantially in the fourth quarter of 1974 and in the early weeks of 1975. Yields on most private money market instruments dropped 4 to 5 percentage points between September 1974 and January 1975, in part because of an easing of private demands for short-term credit but also because of efforts by the Federal Reserve to ease bank reserve positions through reductions in reserve require ments and in the discount rate and through open market operations. Longer-term rates registered only modest declines, reflecting the intense de mands for intermediate- and long-term financing and the continued concern of investors about the high rate of inflation. In general, declines in domestic interest rates during recent months have been significantly larger than declines in interest rates abroad. This widening spread contributed to a deterioration in capital inflows to the United States and to a continued weakening in the exchange rate for the dollar against leading foreign currencies over the fourth quarter and into early 1975. Federal Reserve policy during this period was aimed at fostering conditions of bank reserve availability that would lead to an easing of credit conditions and an improvement in the liquidity of banks and other financial institutions, and that would also lay the basis for more rapid growth in the family of monetary aggregates. In addi tion to providing for a substantial expansion of nonborrowed reserves through open market operations, the System lowered the cost of bor rowing at Reserve Banks. The discount rate was cut from 8 per cent to 7% per cent in early December in recognition of the decline that had already occurred in market rates of interest; in January and again in early February, as it be came evident that the economy was weakening still further, the discount rate was reduced in two steps to 6 % per* cent. The Board also reduced member bank reserve requirements in order to provide banks with additional lendable funds. In November it pro mulgated a set of changes in reserve require ments that released $700 million in required reserves. These changes included a reduction of V of a percentage point in the requirement on 2 net demand deposits aggregating over $400 m illion, the elimination of the remaining mar ginal reserve requirement for large-denomi nation time deposits, and a restructuring of the basic reserve requirement on time deposits. The last of these changes, which set a lower re quirement on deposits with original maturities of at least 180 days than the requirement on shorter-term deposits, was designed to provide an incentive for banks to improve their liquidity by lengthening the maturity of their liabilities. In January 1975 the Board again lowered reserve requirements on net demand deposits— by 1 percentage point on deposits over $400 million and by V of a percentage point on all 2 deposits of less than that amount. This action lowered the total required reserves of member banks by about $ 1.1 billion. Growth in the various monetary aggregates accelerated in the fourth quarter. The narrowly defined money stock, M 1? increased at an annual rate of 4 .6 per cent, as compared with a growth rate of 1.6 per cent over the third quarter; the more broadly defined money stock measures, M2 and M3, grew at annual rates of 7 .0 and 6.9 per cent, as compared with rates of 4.5 and 4 .0 per cent, respectively, in the third quarter. As shown in Table 1 on page 123, the changes 122 Federal Reserve Bulletin □ March 1975 IN T E R E S T RATES LONG-TERM SHORT-TERM Federal funds C om m ercial paper 4-6 month Aaa utility New issue Conventional mortgages > HUD / Treasury bills 3-month F.R, discount rate State and local governm ent * L ev el of series w as affected b y issu e o f n ew 2 0 -y ear U .S . G ovt, b o n d in Jan u a ry 1973. M o n th ly av erag es ex ce p t fo r co n v en tio n al m o rtg ag es (based on q u o ta tio n s fo r one day each m o n th ). Y ield s: U .S . T rea su ry b ills, m ark et y ield s o n 3-m o n th issu es; p rim e c o m m e r cial p a p er, d e aler offerin g ra te s; co n v en tio n al m o rtg ag e s, rates on first m o rtg ag e s in p rim ary m a rk e ts, u n w e ig h te d an d ro u n d e d to n earest 5 b asis p o in ts, from D ept, of H o u sin g and U rb an D e v elo p m en t; C o rp o ra te b o n d s, w e ig h ted a v erag es of new p u b lic ly offered bonds rated A aa, A a, and A b y M o o d y ’s In v esto rs Serv ice and a djusted to an A aa u tility ba sis; U .S . G o v t, b o n d s, m a rk e t y ield s ad ju sted to 2 0 -y ear c o n sta n t m atu rity by U .S . T rea su ry ; S tate and local go v t, b o n d s (2 0 issu e s, m ix ed q u a lity ), B o n d Buyer. in the rates of growth of the monetary aggre gates were somewhat smaller when measured on a quarterly average basis. During the last few weeks of 1974 and in early 1975, demand deposits held by the public contracted as businesses and consumers repaid bank loans. This led to a decline in in January, but because expansion in time and savings deposits held by the public was main tained at a fairly rapid rate throughout the month, M2 continued to rise at a pace only moderately below that of the fourth quarter of 1974. MEMBER BANK RESERVES The easing of pressures on member bank reserve positions was reflected in the decline in the Federal funds rate— the rate at which commer cial banks borrow reserve balances overnight from other banks— from a monthly average of 11.34 per cent in September to 8.53 per cent in December, and then to about 6.5 per cent in early February. There was a considerable acceleration in the rate at which nonborrowed reserves were provided to the banking system through open market operations. Over the 4 months ending in January, such reserves in creased at an annual rate of about 20 per cent, after adjustment to eliminate the effect on the figures of the large increase in late spring and subsequent decrease in early fall of special bor rowing by Franklin National Bank. As nonbor rowed reserves became increasingly available and short-term market interest rates dropped, member banks sharply reduced their borrowings from the Federal Reserve. As a result, total reserves of member banks expanded at an an nual rate of about 4.5 per cent over the 4 months ending in January. F in a n c ia l D e v e lo p m e n ts , Q 4 1974 123 TABLE 1 Changes in selected monetary aggregates1 In per c en t, seaso n ally a d ju sted a n n u al rates 1974 Item 1973 1974 Qi M em b er b an k reserv es: 2 S ill; ‘ 7 .8 T o tal ............................................................... 7 .2 N o n b o rro w ed ............................................... A v ailable to sup p o rt priv ate 9 .3 n o n b an k dep o sits2 ................................. C o n cep ts o f m o n ey 8 calcu lated from : E n d -m o n th o f q u a rte r— M i .................................................................... Mk .................................................................... M i .................................................................... Q u arterly av erag e— M x .................................................................... Mo . . . . . ............ ............... ........... ......... M 3 ................................................................... 8 .6 10.6 1.3 1.2 8 .8 5 .7 4.7 7 .4 6 .7 5.5 9 .3 8 .8 6 .3 8 .9 8 .9 5 .3 7 .9 7.1 5 .8 9 .6 ^.1 7 .3 8 .3 7 .4 9 .7 5 .6 12.8 7 .9 ■ 0 .7 1.6 4 .5 4 .0 7 .0 7 .9 6 .6 r 4 .2 3 4 .4 9.1 8 Q4 8 .2 5 .6 19.1 6.1 8 .8 8 .7 r Q3 20.1 y-vr ; T im e and sav in g s d ep o sits at: C o m m ercial b an k s (other than 11.4 large C D ’s) .................................................. 8 .5 r : 10.4 B ank cred it p ro x y , ad ju sted 4 ......................... C urren cy and p riv a te ly h eld 11.6 b an k d e p o sits . . . . ................................... M e m o ; (C h a n g e in b illio n s of d o lla rs, sea so n ally ad ju sted ): L arg e C D ’s ...................................................... U .S . G o v e rn m e n t d e m a n d d ep o sits at all m em b er b an k s ............................... ............... _ Q2 4 .6 7 .0 6 .9 I M 3 .9 6 .2 5 .2 l i i l 3 .7 6 .6 6 .0 C'C'®1 8.8 3 .9 7.1 3.1 9 .0 6 .9 8 .2 2 0 .4 6 .6 4 .3 10.9 15.4 6 .0 9 .2 1 1 1 ! 4 .2 13.3 3 .5 5 .5 2.1 1.0 -4 .4 10.2 4 10.8 19.9 2 6 .5 -1 .7 -2 .0 -.7 in c o r p o r a te s rev isio n s in m o n ey sto ck and related m easu res b ased on new b en ch m ark data fo r n o n m em b er b an k s fro m the recen tly available O cto b er 16 R eports of C o n d itio n and rev isio n s in seaso n al a d ju stm en t facto rs. T h ese d ata w ere first publish ed on F eb ru ary 20 , 1975. 2T o tal reserv es less req u ired reserv es fo r U .S . G ovt, and in terb an k dep o sits. 3Afx is c u rren cy p lu s priv ate d em an d dep o sits adjusted. Af2 is M x plus co m m ercial b an k tim e and savings dep o sits ad ju sted o th er th an large C D ’s. M 3 is M 2 plus dep o sits at m utual savings banks and savings and lo an asso ciatio n s. 4 T o tal m em b er b an k d ep o sits p lus fu n d s p ro v id ed by E u ro -d o llar b o rro w in g s and b ank related co m m ercial pap er. rR ev ised after the rep o rt w as sent to the Jo in t E co n o m ic C o m m ittee. N o rev isio n w as m ore than tw o -ten th s of a percen tag e p o int. N o t e .— C han g es are calcu lated fro m the av erag e am ounts o u tstan d in g in the last m o n th of each q u a rte r, e x ce p t the q u arterly av erag e calcu latio n s of co n cep ts of m o n ey , w hich are b ased on c h an g es in the av erag e am o u n ts ou tstan d in g fo r a q u arter. A nnual rates of grow th have b een ad ju sted fo r ch an g es in reserv e req u irem en ts. DEPOSIT FLOWS Measured on an end-month-of-quarter basis, the annual rate of increase in M x rose from 1.6 per cent in the third quarter to 4.6 per cent in the fourth quarter. In both periods most of the growth in M t was associated with a rise in the currency component of the money stock; the change in demand deposits was small. The sustained and rapid growth in the public’s hold ings of currency throughout 1974, though it may have reflected some hoarding, was broadly con sistent with the rise in nominal consumption expenditures resulting from an unusually high rate of inflation. Over the year 1974, M x rose 4.7 per cent as compared with an increase of 6.1 per cent in 1973. The more rapid growth of time and savings deposits at both commercial banks and nonbank thrift institutions in the fourth quarter reflected the retreat of short-term market interest rates from the high levels that had encouraged diver sion of savings flows into market instruments during the summer. The rate of increase in time and savings deposits other than large negotiable 124 Federal Reserve Bulletin □ March 1975 CONCEPTS OF MONEY to stimulate savings flows, the Federal regula tory agencies established in late December a new category of consumer-type time deposits called Investment Certificates to be offered in a minimum denomination of $ 1,000 and with a minimum maturity of 6 years. Insured com mercial banks are authorized to pay up to IV2 per cent on such deposits; insured nonbank thrift institutions may pay 1 3 per cent. The interest A rate ceilings on these Investment Certificates are higher than ceiling rates on other deposit instru ments and are intended to make such deposits more competitive with market instruments. BANK CREDIT AND COMMERCIAL PAPER S e aso n ally ad ju sted m o n th ly av erag es. M x is cu rren cy plu s p riv ate d em a n d d ep o sits ad ju sted . M 2 is M i p lu s co m m ercial b a n k tim e and sav in g s d ep o sits ad ju sted o th er than large C D ’s. M 3 is M 2 p lu s d ep o sits at m u tu a l sav in g s b an k s and sav ings and loan asso ciatio n s. certificates of deposit (C D ’s) at commercial banks rose from an annual rate of 7.1 per cent in the third quarter to 9 .0 per cent in the fourth. As a result, growth of M2 increased from an annual rate of 4.5 per cent in the third quarter to 7 .0 per cent in the fourth quarter, on an end-month-of-quarter basis. Inflows to nonbank thrift institutions, which had been at an annual rate of only 3.1 per cent in the third quarter, grew at a 6.9 per cent rate in the fourth quarter. The measure of the money stock that includes such flows, M3, increased at a 6.9 per cent rate in the final quarter of the year as compared with a 4 .0 per cent rate in the third quarter. Late in the fourth quarter two changes were made in regulations governing deposit structures of both banks and nonbank thrift institutions. First, in late November, Federal legislation was passed that increased deposit insurance on indi vidual accounts to $40,000 and on accounts of governmental units to $ 100,0 0 0 ; at the same time, the Federal Reserve authorized commer cial banks to issue savings deposits to govern mental units for the first time. Second, in order Total loans and investments at commercial banks declined $4.8 billion on a seasonally adjusted basis over the October-December period. Seasonally adjusted, commercial bank holdings of Treasury securities declined sub stantially in the fourth quarter, and although bank holdings of other securities— mainly mu nicipal bonds and Federal agency issues— inBANK CREDIT COM PO NENTS Change, billions o f dollars U.S. GOVT. SECURITIES 20 16 12 8 4 + 0 4 1973__________ 1974_____________ S easo n ally adju sted . L oans ad ju sted for tran sfers be tw ee n b anks and th eir ho ld in g c o m p a n ies, affiliates, su b sid ia ries, or fo reig n b ran ch es. F in a n c ia l D e v e lo p m e n ts , Q 4 1974 125 TABLE 2 Rate spreads and changes in business loans and commercial paper P erio d S p read (basis p o in ts)— p rim e rate less 30- to 5 9 -d ay co m m e rc ial p ap er rate C h an g e (b illio n s o f d o lla rs )1 B u sin ess D ealerlo an s at all p laced T otal c o m m e rc ial co m m ercial p a p er3 b a n k s2 A nnual percen tag e rate of change in total a m ount 1 Seaso n ally ad ju sted . 2 B ased o n last-W ed n e sd ay -o f-m o n th d a ta ; ad ju sted to in clu d e ou tstan d in g a m ounts of loans sold to affiliates. 3M easu red fro m en d -o f-m o n th to en d -o f-m o n th . creased by slightly more than $2 billion, total investments of commercial banks declined on a seasonally adjusted basis. Total loans outstanding at commercial banks also declined during the fourth quarter by $3.6 billion on a seasonally adjusted basis. This was in sharp contrast with previous quarters in 1974 when loan portfolios had expanded rapidly. Real estate loans grew somewhat more slow ly in the October-December period, and there were de clines in outstanding amounts in several major loan categories— consumer, security, and non bank financial borrowings. Continuation of rel atively restrictive lending policies by banks, the weakness of econom ic activity, and the desire of firms to improve balance sheets by substitut ing long-term for short-term debt contributed to the slowing of business loan growth from a seasonally adjusted annual rate of 6.2 per cent in the third quarter to virtually no growth in the fourth quarter. This weakness in business loans continued to be evident in the early weeks of 1975. Between September and December, commer cial paper rates declined from just over 11 per cent to about 9 per cent and then dropped to 6 per cent by early February of this year. M eanwhile, the commercial bank prime rate fell from 12 per cent to around 9 per cent. Although the spread between the prime rate and commer cial paper rates widened somewhat during the fourth quarter, there was little change in the volume of commercial paper issued by nonfi nancial businesses. The combined total of busi ness loans and of nonfinancial commercial paper increased moderately in October and November but fell sharply in December. Over the Octo ber-December period as a whole, total short term business credit grew by only 2.5 per cent, significantly below the rate of increase in the first three quarters of the year. Consumer credit outstanding at banks showed almost no change in October and then declined in November and December as sales of con sumer durable goods weakened further. The growth of real estate loans at banks slowed to an annual rate of 5 per cent in the fourth quarter, BANK LOANS MAJOR COMPONENTS ^^^^^^Chanee^ilHwis of dollars BUSINESS REA L ESTATE n ULn □ .e h .....m r —i n i 1 .... C O N SU M ER FT! r -i - i — i N O N B A N K F IN A N C IA L wm 04 i Q1 Q2 Q3 04 1973__________ 1974 S e asonally adju sted . B u sin ess loans adju sted fo r tran sfers b e tw e en b a n k s and th e ir h o ld in g co m p a n ies, affiliates, su b sid i arie s, or fo reig n b ra n c h es. 126 Federal Reserve Bulletin □ March 1975 reflecting the continued deterioration of resi dential housing activity. With consumer pur chases of durable goods and consumer credit needs declining, credit demands of finance companies lessened and outstanding bank loans to nonbank financial institutions declined sharply in December, resulting in a reduction in outstanding amounts over the quarter as a whole. NONBANK INTERMEDIARIES AND THE MORTGAGE MARKET Deposit flows at nonbank thrift institutions im proved significantly throughout the fourth quarter, as generally lower market interest rates reduced pressures toward disintermediation. During the summer deposit withdrawals had exceeded inflows of new money at mutual sav ings banks and savings and loan associations; this pattern was reversed in the final 3 months of the year. The bulk of thrift deposit inflows in the fourth quarter— as in most periods in recent years— took the form of time certificates, which pay higher rates than passbook savings accounts; but regular savings deposits also rose, in contrast to the reductions in such balances that had occurred during the summer and early fall. With improved deposit inflows, thrift institu tions rebuilt their liquid asset portfolios, which had been drawn down in earlier months, greatly reduced their reliance on nondeposit sources of funds, and repaid some short-term bank loans. Although member institutions continued to bor row from the Federal home loan banks in response to advances offered at below-market rates, they repaid borrowings that had been made earlier at nonsubsidized rates. The net result was a smaller increase in Federal home loan bank advances outstanding in the fourth quarter than in the preceding period. And in January there were substantial repayments of such advances. Outstanding mortgage loan commitments at thrift institutions continued to decline— but at a decelerating rate— in the fourth quarter as the volume of new commit ments picked up somewhat in November and December. Reflecting the reductions in loan commit ments in earlier quarters, net mortgage lending by thrift institutions declined further in the fourth quarter, and net mortgage debt formation slowed to the lowest rate since early 1971. Support operations by the Federally sponsored credit agencies— including purchases of loans under several housing-support programs enacted earlier in the year and indirect support in the form of subsidized advances to savings associa tions by Federal home loan banks— accounted for the financing of a substantial portion of the total net change in mortgage debt. Accompanying the stronger deposit perform- TABLE 3 Net change in mortgage debt outstanding In b illio n s o f d o lla rs, seaso n ally ad ju sted an n u al rates 1973 1974 C h an g e — Q4 By ty p e of d eb t: T o ta l .................................................... R esid en tial ................................... O th e r1 ............................................. Ql Q2 Q3 ] Q 4e 58 59 65 50 39 20 ?9 21 16 14 3 6 10 6 4 A t selected in stitu tio n s: C o m m ercial b a n k s ........................ M utual savings b an k s .................. In su ran ce co m p an ies ..................... F N M A -G N M A ............................... M e m o : FH L B a d v an ces to S & L ’s 1In clu d es co m m ercial and o th e r n o n resid en tial as w ell as fa rm pro p erties. 2 L ess th an 0 .5 . eP artially e stim ate d . F in a n c ia l D e v e lo p m e n ts , ance of nonbank institutions in the fourth quarter and the downward movement of other market rates, mortgage yields declined gradually from October through the year-end. Average interest rates on new commitments by savings and loan associations for conventional home mortgages dropped from just over 10 per cent in October to about 914 per cent by early February. In the secondary market, average auction yields on forward-purchase commitments of the Federal National Mortgage Association on Govern ment-underwritten mortgages declined from more than 10^2 per cent in September to about 9 V per cent in December, and fell to 9V8 per 2 cent in late January. By administrative action the ceiling rate on residential mortgages insured by the Federal Housing Administration and guaranteed by the Veterans Administration was reduced Vi of a percentage point in November and another Vi point in late January, to a level of 8 V per cent. 2 NONBANK SAVINGS ACCOUNTS jnt 12 8 4 0 S e asonally a d ju sted . C h an g es b ased o n m o n th -en d figures. SECURITIES MARKETS The gross volume of long-term corporate debt issued in the fourth quarter of 1974 totaled $38 billion, at a seasonally adjusted annual rate, the second largest volume on record for any 3month period. The heaviest borrowers in the bond market were industrial corporations, which sought funds with which to pay down short-term debt and to finance capital expenditures. Some of these firms had postponed bond issues earlier in the year in the expectation that yields would turn down, and they came to the market in the fourth quarter when credit market conditions began to ease. Public utilities, which had accounted for the Q 4 1974 127 TABLE 4 Offerings of new security issues In billio n s of d o lla rs, seaso n ally a d ju sted annual rates 1974 1973 T y p e of issue Q4 Ql Q2 Q3 Q 4e C o r p o r a te s e c u ritie s — T o ta l ......................... B onds ............................. S to ck s ............................. 38 26 12 38 30 8 34r 29T 5 36r 29r 7r 45 38 7 State an d local go v e rn m e n t bon d s 26 23 27r 19r 23 c E stim ated. r R evised. preponderance of long-term debt issues in the third quarter, also borrowed very heavily in October. Although a large communications firm postponed a sizable offering in November, bor rowings by the utilities returned to more normal seasonal levels in the last 2 months of the year. In contrast to the large bond volum e, stock issuance in the fourth quarter continued to be light. Share prices remained depressed through out the period, thus maintaining the high cost of equity financing. Stock prices rose substan tially in the early weeks of 1975, but the leading indexes were still about 30 per cent below their 1973 peaks. Despite the large volume of offerings in cor porate bond markets, favorable reactions by investors to several highly rated bond issues contributed to a sharp decline in corporate yields early in the fourth quarter. The average rate on new Aaa-rated utility issues, which had reached a peak of over IOV2 per cent early in October, had declined by almost 2 percentage points by mid-November. The drop in bond rates was not sustained over the remainder of the quarter, however, largely because of the growing vol ume of new corporate issues coming to the market. Consequently, between November and December the yield on new issues edged back up to 9Vi per cent, erasing half of the decline that had occurred early in the quarter. Simultaneously, greater selectivity on the part of market participants and concern on the part of some investors about the impact of the slow ing in econom ic activity on corporate earnings resulted in a widening of the spread between yields on highest quality bond issues and those on lower-rated obligations. In January the bond 128 Federal Reserve Bulletin □ March 1975 TABLE 5 Federal Government borrowing and cash balance Q uarterly to ta ls, in b illio n s o f d o lla rs, n o t seaso n ally adjusted 1974 1973 Item Q4 T rea su ry financing: B u d g et su rp lu s, o r d eficit . N et cash b o rro w in g s, or rep ay m en ts ( —) .......... O th e r m ean s o f fin an cin g 1 C h an g e in cash b alan ce . .. F ed erally sp o n so red a g en c ie s, net c ash b o rro w in g s ............ M em o: N et cash b o rro w in g s by T rea su ry , seaso n ally a d justed an n u al rate ........... N et cash b o rro w in g s by F ed erally sp o n so re d cre d it a g e n c ie s,2 seaso n ally ad ju sted an n u al rate Ql - 5 .0 6 .7 .4 2.1 Q2 Q3 -7 .1 9 .1 - 1 .6 3 .4 1.7 -2 .0 -6 .4 -2 .5 .8 4 .5 - 3 .4 -.5 10.3 - 1 .1 -2 .8 5 .5 7 .7 3 .4 6 14 18 20 25 17 3 .2 Q4 r -1 2 .0 1 , ' -V ; 15 ■ 1C h eck s issu ed less c h eck s p a id , o u tlay s of o ff-b u d g et Federal a g en c ie s, accrued item s, and o th er tra n sac tio n s. 2In clu d es d eb t o f th e Fed eral H o m e L oan M o rtg ag e C o rp o ra tio n , F ederal hom e loan b a n k s, F ed eral land b a n k s, Fed eral in term ed iate cre d it b a n k s, banks fo r co o p erativ es, and F N M A (in clu d in g d isco u n t n o tes and secu rities g u aran teed by G N M A ). market continued to face a heavy calendar of current and prospective new issues; but in spite of the considerable uncertainty that permeated the market, there was a moderate decline in yields, and the issues offered were readily ab sorbed. By early February new-issue yields had fallen to about 9 per cent. While corporate and other market rates de clined on balance in the fourth quarter, a com bination of factors created upward pressures on yields in municipal markets. First, the volume of State and local government issues was larger in the fourth quarter than it had been in the preceding period. Second, two of the traditional institutional buyers of tax-exempt issues— com mercial banks and casualty insurance compa nies— showed only modest interest in acquiring long-term issues. Finally, municipal markets were disturbed by increasing concern over the financial position of N ew York City, which had difficulty marketing a bond issue in October and then in December was forced to pay the highest rate of return on a note issue— 9.5 per cent— in the city’s history. Throughout the year New York City had been issuing a substantial amount of debt (the city accounted for almost 30 per cent of total short-term debt issued in the taxexempt sector), and as reports of the city’s potential fiscal problems were made public, the tone of the market for New York City obliga tions deteriorated considerably. The market improved somewhat in January, when New York City took measures to improve its fiscal position and rescheduled its calendar of future debt issues. By early February mu nicipal rates had declined by another 3 of a A percentage point, but investors continued to show their preference for high-quality munici pals— demanding large premiums on lower rated issues. The U .S . Treasury increased its net cash borrowing somewhat more than seasonally in the fourth quarter to finance an enlarged deficit of just under $12 billion. The market impact of the increased Treasury financing was partially offset, however, by a reduction in net borrowing by Federally sponsored credit agencies, as the needs of these agencies for funds declined in reflection of improved deposit inflows at thrift institutions. In line with the easing stance of monetary policy and the reduction in demands for short-term credit, pressures in Government securities markets moderated and rates on Treasury bills and the yield on longer-term coupon issues both trended downward in the fourth quarter. In early February the bill rate stood at 5% per cent, about a percentage point below its lowest level in 1974. □ 129 Survey o f B ank Response to Federal A dvisory C ouncil Statem ent on Lending Policies In January of this year a questionnaire on lend ing policies was sent to a panel of 125 large commercial banks. This questionnaire was de signed to ascertain bank response to the state ment on bank lending policies issued by the Federal Advisory Council in September 1974 (see Sept. B u l l e t i n , pp. 6 7 9 -8 0 ). The survey results are summarized in Tables 1 and 2. Most of the banks indicated in their responses that they either had transmitted the FAC state ment directly to their loan officers or had issued specific guidelines to implement the policies discussed in the statement. And a number of banks reported that they had previously issued similar policy lending guidelines of their own to loan officers. TABLE 1 Bank responses to credit allocation questions, December 1974 compared with same month in preceding years Number of banks; Figures in parentheses indicate percentage distribution of total banks reporting Item U rg en cy of cre d it a llo catio n as c o m p ared w ith m id -S ep t. 1974 ........................... T o tal n u m b er of b a n k s1 S ignificantly larger E ssen tially unch an g ed S ignificantly sm aller N one receiv ed 123 (1 0 0 .0 ) 8 (6 .5 ) 74 (6 0 .2 ) 41 (3 3 .3 ) 123 123 (1 0 0 .0 ) (1 0 0 .0 ) 26 9 (21.1) (7 .3 ) 81 101 (6 5 .9 ) (8 2 .1 ) 16 13 (1 3 .0 ) (1 0 .6 ) 123 123 (1 0 0 .0 ) (1 0 0 .0 ) 26 12 (2 1 .1 ) (9.8) 67 95 (5 4 .5 ) (7 7 .2 ) 30 16 (2 4 .4 ) (1 3 .0 ) 123 123 (1 0 0 .0 ) (1 0 0 .0 ) 63 36 (5 1 .2 ) (29.2) 49 75 (3 9 .8 ) (6 1 .0 ) 4 4 (3 .3 ) (3 .3 ) 123 123 (1 0 0 .0 ) (1 0 0 .0 ) 5 6 (4.1) (4 .9 ) 24 75 (1 9 .5 ) (6 1 .0 ) 94 42 (7 6 .4 ) (3 4 .1 ) 123 123 (1 0 0 .0 ) (1 0 0 .0 ) 8 9 (6 .5 ) (7 .3 ) 29 77 (2 3 .6 ) (6 2 .6 ) 86 37 (6 9 .9 ) (3 0 .1 ) 123 123 (1 0 0 .0 ) (1 0 0 .0 ) 1 0 (0.8) (0) 29 13 (2 3 .6 ) (1 0 .6 ) 55 33 (4 4 .7 ) (2 6 .8 ) 38 123 123 (1 0 0 ,0 ) (1 0 0 .0 ) 1 0 (0 .8 ) (0) 26 9 (2 1 .1 ) (7 .3 ) 74 40 (6 0 .2 ) (3 2 .5 ) 22 N one approved P u rp o se and n atu re of loans: T o m e e t b a s ic c r e d it n e e d s f o r n o rm a l o p e r a tio n s — A p p licatio n s receiv ed .................. P ro p o rtio n a p p rov ed ..................... T o fin a n c e c a p ita l in v e stm e n t — A p p licatio n s receiv ed ................. P ro p o rtio n ap p ro v ed ..................... T o b u s in e s s e s s u ffe rin g te m p o r a r y illiq u id ity — A p p licatio n s receiv ed ................. P ro p o rtio n ap p ro v ed ..................... 7 (5 .7 ) 8 (6 .5 ) T o fin a n c e h o m e b u ild in g in d u s tr y — A p p licatio n s receiv ed ................. P ro p o rtio n ap p ro v ed ..................... T o in d iv id u a ls f o r b a s ic h o u s e h o ld n e e d s a n d a u to s — A p p lic a tio n s receiv ed ................. P ro p o rtio n ap p ro v ed ..................... F o r p u r e ly fin a n c ia l a c tiv itie s — A p p licatio n s receiv ed ................. P ro p o rtio n ap p ro v ed ..................... (3 0 .9 ) 77 F o r s p e c u la tiv e p u r p o s e s — A p p licatio n s re c eiv ed ................. P ro p o rtio n ap p ro v ed ..................... (1 7 .9 ) 74 •T w o b an k s on the o rig in al panel of 125 had m erg ed w ith o ther b an k s, but all of the 123 o ther m em bers of the panel responded to th e su rv ey . 130 Federal Reserve Bulletin □ March 1975 The banks in the survey panel were asked to evaluate the urgency of credit allocation in December 1974, as compared with the situation prevailing in September when the FAC state ment was issued. Whereas two-thirds of the respondents indicated that the situation had not changed significantly, one-third of the banks did report that the problem of allocating available funds among their various types of credit de mand was significantly less urgent. In order to evaluate both the pattern of de mands for bank credit and bank attitudes toward credit requests, the survey respondents were asked a series of qualitative questions on the trends in numbers of loan applications and the proportion of such requests approved in D e cember 1974, as compared with the normal experience during that month in recent years. For certain types of loans that ordinarily repre sent only a small proportion of amounts out standing— such as loans for temporary liquidity needs, for purely financial purposes, or for speculative operations— the banks were also asked to indicate whether they had had any such loan applications during the report month. In interpreting the replies, which are sum marized in Table 1, it should be recognized that credit availability at banks was more restrictive in December 1974 than it had been on the average in that month during preceding years. Thus, as shown in that table there was a larger than usual number of applications from busi nesses suffering a temporary lack of liquidity. Despite the tighter conditions, 90 per cent of the banks either approved as many requests as usual or approved a significantly larger number. With regard to loans for purely financial or speculative purposes, on the other hand, about 90 per cent of the banks approved either a smaller proportion of requests or none at all. Table 2 gives aggregate data on the changes in amounts outstanding in certain key loan cate gories. It should be noted that the changes in outstandings reflect loan repayments and take downs of loan commitments that may have been TABLE 2 Loans outstanding: Changes in selected categories (October 16, 1974-January 15, 1975) Amounts in millions of dollars C h an g e in— L oan category A m ount C om m ercial and industrial loans a d ju sted 1 ................................................. 74 4 .3 Per cent .73 R eal, estate loans secured p rim arily by residential pro p erties plus re sid e n tial c o n stru ctio n loans in cluded in c o m m e rc ial and in dustrial lo a n s... 29 7 .7 .97 L oans to n o nbank financial in stitutions F inance co m p an ies ................................. O ther ............................................................ - 2 5 .1 354.1 - 3 7 9 .1 -.0 9 3.9 7 -1 .8 5 L oans to in d ividuals ................................... -1 2 6 .4 - .4 5 N et change in claim s on fo reig n ers . .. - 2 , 5 2 3 .4 -1 8 .4 4 M em o: L oans to fo reig n ers2 ............................. D ue to fo reig n e rs3 ................................. -7 4 7 .0 1 ,7 7 6 .4 -6 .0 2 6.81 1E x clu d in g resid en tial co n stru ctio n loans and loans to foreign b u sin esses (d ata p artly estim ated ). 2L oans to fo reig n busin esses plus loans to foreign c o m m e r cial b a n k s, fo reig n g o v e rn m e n ts, and fo reig n official in stitu tions. 3D em and and tim e dep o sits due to fo reig n b a n k s, foreign g o v e rn m e n ts, fo reig n official in stitu tio n s, and fo reig n in d iv id u a ls, p a rtn e rsh ip s, and c o rp o ra tio n s (data partly e stim ate d ), plus gross liabilities to their ow n fo reig n bran ch es. made prior to the survey period, as well as new loans for which applications were received or processed during the period covered by the questionnaire.1 The statistical summary also compares the change in bank loans to foreigners with the change in funds obtained from foreign sources during the period. For the banks covered by the sample, funds obtained from foreigners increased sharply whereas outstanding loans to foreigners actually declined. lrThe tim e period co v ered w as the 3 -m onth period from O ctober 15, 1 9 7 4 , to January 15, 19 7 5 , to be c on sisten t w ith the in tend ed quarterly tim in g o f the su rvey and to avoid p o ssib le distortions arising from w in d o w -d re ssin g arrangem ents at the year-end state m ent date. 131 T reasu ry and Federal Reserve Foreign Exchange O perations This 26th joint interim report reflects the Treasury-Federal R eserve p olicy of making available additional information on foreign ex change operations from time to time. The Fed eral R eserve Bank of N ew York acts as agent for both the Treasury and the Federal Open M arket Committee of the Federal R eserve Sys tem in the conduct of foreign exchange opera tions. This report was prepared by Charles A . Coom bs, Special M anager, System Open M a r ket Account, until February 19, 1975, and Sen ior Vice President in charge o f the Foreign D epartm ent of the Federal R eserve Bank of N ew York, and by S cott E. Pardee, who was ap pointed D eputy M anager for Foreign O pera tions as o f that date. It covers the perio d A ugust 1974 through January 1975. Previous reports have been published in the M arch and Sep tember B u l l e t i n s of each year beginning with Septem ber 1962. Through the late summer of 1974 the dollar showed considerable bouyancy in the exchange markets. From October on, however, the dollar became subject to continuing selling pressure. By late January 1975, the dollar had fallen from its highs by some 27 per cent against the Swiss franc and 17 per cent against the German mark and other currencies in the European monetary bloc. It had also declined by some 3 to 4 per cent against sterling, the Italian lira, and the Japanese yen. The dollar’s strength in August and Sep tember 1974 primarily reflected the pull of unu sually high interest rates in New York and in the Euro-dollar market, reinforced by expecta tions that surplus oil revenues would flow into U.S. financial markets after saturating invest ment outlets elsewhere. With the dollar in de mand, the Federal Reserve was able to buy sufficient marks in the market not only to repay the remaining $64.6 million equivalent of drawings on the German Federal Bank that were outstanding from earlier in the year but also to build up balances to finance intervention should selling pressure suddenly erupt. On one such occasion— August 8 and 9— the Federal Reserve sold $20.8 million of marks from balances, $5.3 million of Dutch guilders drawn on the swap line with the Netherlands Bank, and $2.5 million of Belgian francs, of which $0.8 million was from balances and $1.7 million drawn under the swap line with the National Bank of Belgium; the swap drawings in guilders and francs were quickly repaid out of market purchases of these currencies. Again, on September 3, the Federal Reserve sold $16.2 TABLE 1 Federal Reserve Reciprocal Currency Arrangements In m illions of dollars In stitution A m ount o f fa c ility , Jan . 3 1 , 1975 A ustrian N ational B ank of N ational B ank of N ational B ank of C an ad a B ank o f E n g lan d B ank ................................. B elgium ........................... ................................................ D en m ark ......................... ............................................... 250 1,000 2 ,0 0 0 250 3 ,0 0 0 B ank of G erm an B an k of B ank of B ank of F rance .................................................. Federal B ank ..................................... Italy ...................................................... Japan .................................................... M ex ico ................................................. 2 ,0 0 0 2 ,0 0 0 3 ,0 0 0 2 ,0 0 0 180 N eth erlan d s B ank ............................................... B ank of N orw ay ................................................ B ank of S w eden ................................................ S w iss N ational B ank ....................................... 500 250 300 1,400 B ank for In tern atio n al S e ttlem ents: S w iss fran c s/d o lla rs ..................................... O th er au thorized E u ro p ean cu rren cies/d o llars ..................................... T o ta l ........................................................ 600 1,250 19 ,9 8 0 132 Federal Reserve Bulletin □ March 1975 TABLE 2 Federal Reserve System Activity Under Its Reciprocal Swap Lines In m illio n s o f d o llars eq u iv alen t D ra w in g s, or rep ay m en ts (— ) S ystem sw ap d ra w in g s, Jan . 1, 1974 T ran sa ctio n s w ith — 1974 Q2 Qi N atio n al B an k o f B elg iu m G erm an F ederal B an k ............ ... Q3 f 1.7 1—1-7 2 6 1 .8 ..................... J 1 2 5 5 .0 - 3 .7 130.4 -1 2 2 .8 N e th erlan d s B an k ............................... Sw iss N atio n al B an k ....................... 5 6 5 .0 1975 -2 5 8 .8 f 7 .6 j —7 .6 J 193.8 B an k for In te rn a tio n a l S ettlem en ts (S w iss fran cs) ................................. T o ta l ............................................. Q4 13.2' -1 3 .2 30 1 .5 -8 2 .8 3 8 .0 -3 4 .8 13.3 - 5 .9 Jan. 2 6 1 .8 1 6 4 .0 j 3 8 2 .7 3 .2 1 9 .3 | 39 7 .8 6 0 0 .0 6 0 0 .0 1 ,4 2 6 .8 S ystem sw ap d ra w in g s, Jan. 31, 1975 2 5 5 .0 1 9 7 .6 1 30.4 -1 2 2 .8 9 .4 -2 6 8 .1 3 6 6 .0 - 1 3 6 .7 183 ':3} 1 ,6 4 5 .4 N o t e .— D iscrep an cies in to tals are d u e to ro u n d in g . million of marks from balances to check ah abrupt decline in the dollar. Otherwise, the Federal Reserve abstained from intervention until early October. By that time an improving trend in U .S . exports— up 40 per cent from the year before— was cutting into the sizable trade deficit caused by the $17 billion jump in our 1974 oil import bill. Nevertheless, in early October, the ex change markets were showing signs of ner vousness over the onset of a sharp decline in dollar interest rates and over reports that surplus oil revenues were beginning to shift out of dollars and sterling into continental European currencies. Short bursts of selling pressure oc curred in October. The Federal Reserve inter vened on 6 days, selling a total of $165.7 million equivalent of marks, of which $62.1 m illion equivalent was from balances and $103.6 million equivalent was drawn under the swap line with the German Federal Bank. The German central bank bought similar amounts of dollars in Frankfurt. Late in the month, when the dollar firmed somewhat follow ing discount rate cuts in Germany and the Netherlands, the Federal Reserve began to acquire in the market moderate amounts of marks against outstanding swap indebtedness. By early November, however, market senti ment toward the dollar turned bearish. Mounting evidence of an econom ic recession in the United States, more severe than in most other countries, suggested to the market that interest rates would fall faster here than abroad. That possibility in turn reinforced fears of large-scale shifts of funds out of dollars by some oil-producing countries as did the ever-present risk of renewed hostilities in the Middle East. At the same time, Germany’s continuing strong trade performance rekindled revaluation rumors for the mark, and Switzerland— having lifted barriers to short term capital inflows— experienced a new influx of funds, which bid up the franc rate sharply. The rise of the franc and the mark tended to be mutually reinforcing, and this set off a gen eral upsweep of currency rates against the dol lar. On several occasions the dollar rebounded in response to concerted intervention by the Federal Reserve and European central banks and to the introduction by the Swiss authorities of new curbs on capital inflows. Nevertheless, the vigorous public debate over economic policies here and in Europe kept the market on edge, and the dollar continued to slip through late November. The Federal Reserve intervened, at times forcefully, on 7 days during November. In total, $187.9 million equivalent of marks was sold, F o r e ig n E x c h a n g e O p e r a tio n s of which $164.3 million equivalent was drawn under the swap line with the German Federal Bank and the rest from balances. In addition, the System sold $28.5 million equivalent of Dutch guilders drawn under the swap line with the Netherlands Bank; $10.8 million of Belgian francs, of which $10.4 million was drawn under the swap line with the National Bank of Belgium and the rest from balances; and $12.5 million equivalent of Swiss francs purchased outright from the Swiss National Bank. Late in November and early December the pressures on the dollar eased, as U .S . interest rates leveled off. The Federal Reserve was able to purchase marks in the market and repay $82.8 million equivalent of swap drawings on the German Federal Bank. The System also pur chased sufficient amounts of guilders and B el gian francs to liquidate in full the November drawings in these currencies. From mid-December to late January the ex change markets were subject to an almost unre mitting diet of bearish news for the dollar, and market forces drove dollar rates lower almost every day. The econom ic downturn and the slide of interest rates in the United States reinforced expectations of a further widening of interest differentials already adverse to the dollar. Gloomy forecasts emerging in the debates over econom ic and energy policies in Washington further depressed the market. With individual oil-producing countries reportedly growing res tive over the dollar’s depreciation, market fears of an accelerated diversification of oil proceeds to other currencies intensified. In such an at mosphere the market ignored any favorable news for the dollar, such as the underlying improvement in the U .S . trade balance and the slackening in our rate of inflation. To cushion the dollar’s decline, the Federal Reserve intervened on 17 of the 28 business days from mid-December through January 24. Over that stretch, operating jointly with the German Federal Bank, the System sold a further $134 million equivalent of marks, of which $103 million was drawn under the swap line and the rest from balances. The Federal Reserve also intervened in Swiss francs in December-January, and the Swiss National Bank re sumed spot intervention in Zurich on January 6. The System ’s sales of Swiss francs amounted to $51.1 million equivalent, of which $32.5 million was drawn under the swap line with the Swiss National Bank and the rest purchased outright from that bank. In addition, the Federal Reserve sold $9.6 million equivalent of Dutch guilders and $2.9 million equivalent of Belgian francs drawn on the swap line with the respec tive central banks. Of these swap commitments, $5.9 million of Swiss francs, $6.4 million of Dutch guilders, and the full amount of Belgian francs were repaid through market acquisitions. As the depreciation of the dollar continued, European exporters became increasingly con cerned over an emerging undervaluation of the U .S . dollar that would leave them at a competi- TABLE 3 Drawings and Repayments on Federal Reserve System by Its Swap Partners In m illio n s of d o llars D ra w in g s, or repaym ents (— ) B an k s d ra w in g on S ystem D raw in g s on S y stem , Jan . 1, 1974 1974 Ql B an k o f M ex ico ................................. B an k fo r In tern atio n al S ettlem en ts (ag ain st G e rm a n m ark s) ............ T o ta l J \ 133 Q2 1975 Q3 Q4 Jan. ... ... ... ... 180.0 ... ... -1 8 0 .0 ...\ ...j J 2 6 .0 1 -2 6 .0 7 6 .0 -7 6 .0 6 5 .0 -6 5 .0 129.0 - 1 2 9 .0 4 5 .0 \ - 4 5 .0 ] J 2 6 .0 \ —2 6 .0 7 6 .0 -7 6 .0 2 4 5 .0 -6 5 .0 1 2 9 .0 - 3 0 9 .0 45.01 - 4 5 .0 J D raw in g s on S y ste m , Jan . 31, 1975 134 Federal Reserve Bulletin □ March 1975 TABLE 4 U.S. Treasury Securities, Foreign Currency Series In m illio n s o f d o llars eq u iv a len t Issu e s, or red em p tio n s (— ) Issu ed to— O u t stan d in g , Jan . 1, 1974 1974 Qi ....................... 1 ,4 5 9 .2 B an k for In tern atio n al S ettlem en ts Q2 1975 Q3 Q4 O u t stan d in g , Jan. 31, 1975 Jan. 127.3 Sw iss N atio n al B an k 127.3 1,5 9 9 .3 -1 2 7 .3 T o ta l 1 ,5 8 6 .4 11 ,5 9 9 .3 1In crease in am o u n t o u tsta n d in g reflects v alu atio n c h an ges th ro u g h A pril 1974. N o t e .— S w iss-fra n c-d en o m in ated secu rity issued to the B ank fo r In tern atio n al S ettlem en ts w as reissu ed to the Sw iss N atio n al B an k at its m atu rity in Jan u ary 1974- tive disadvantage in world markets. By late January this potential problem was also recog nized by European government officials, Vho publicly noted that the dollar had fallen to unrealistically low levels in the exchange mar kets. Against this background, the Federal Re serve, together with the German Federal Bank, began during the last week in January to inter vene more forcefully to resist the erosion of dollar rates. Operating on 4 of the 5 days, the Federal Reserve sold a further $94.6 million of marks, drawn on the swap line, and the German Federal Bank purchased a roughly equivalent amount of dollars. In summary, in exchange market intervention during the 6-month period, the Federal Reserve sold a total of $742.3 million equivalent of German marks, Swiss francs, Dutch guilders, and Belgian francs. Of this, $619.2 million equivalent was in German marks— $465.5 mil lion drawn under the swap arrangement with the German Federal Bank and the rest from balances acquired in the market. Liquidation of debt in marks, including the $64.6 million outstanding on August 1, amounted to $147.4 million equivalent, with the result that commitments in marks stood at $382.7 million equivalent on January 31. Intervention in Swiss francs amounted to $63.6 million equivalent, of which $31.1 mil lion was purchased directly from the Swiss National Bank and the remaining $32.5 million was financed by swap drawings. With $5.9 million of Swiss francs having been repaid, some $26.6 million equivalent of those draw ings remained outstanding on January 31. Of the guilders, $43.3 million equivalent was sold in the market— all financed by swap drawings of which $3.2 million equivalent was outstand ing at the end of January. The $16.2 million intervention in Belgian francs was financed out of $1.2 million equivalent of balances and $15 million equivalent of swap drawings, all of which had been repaid by the end of the period. Also during the period, on August 21, the Bank of Mexico drew the full $180 million available under the swap arrangement with the Federal Reserve to cover a temporary shortfall in reserves. This drawing was repaid in No vember, prior to maturity. As described in the December 1974 interim report, on September 26 the Federal Reserve Bank of New York, after consultation with the Board of Governors of the Federal Reserve System, the U.S. Treasury, and other Govern ment agencies, acquired the foreign exchange commitments of the Franklin National Bank. This action was greeted with relief by market participants here and abroad, and the subsequent news of Franklin’s insolvency was taken in stride by the market with no adverse impact on dollar rates. The New York Bank quickly bal anced the Franklin book and has met the forward commitments on maturity. By the end of Jan uary, nearly $400 million of the original $725 million of contracts had been liquidated. F o r e ig n E x c h a n g e O p e r a tio n s GERM AN M ARK During 1974 the German economy turned in creasingly sluggish, leading to a slackening of import demand and a freeing of productive capacity for export. For a time the more buoyant econom ies of Germany’s major trading partners provided continuing demand for German ex ports. But even after new demand weakened in the face of the spreading worldwide recession, the huge backlog of foreign orders received during previous years supported a high level of production for shipment abroad. Thus, although Germany, like other industrial countries, faced a sharply increased oil bill— up $8 billion for 1974 as a whole— the combined weakness of import demand and rapid growth of exports widened Germany’s trade surplus, especially in the early months of the year. The surprising strength of Germany’s trade position fostered a speculative demand for the mark, which rose to as high as $0.4188 in mid-May and turned around only after reports that the Federal R e serve, the German Federal Bank, and the Swiss National Bank had agreed on a concerted inter vention plan to counter speculation against the dollar. A reflux of funds out of marks then devel oped, as nonresidents liquidated some of their large mark investments of previous years, as German enterprises lent heavily abroad to fi nance exports, and as the banking sector responded to the rise in the dollar interest rates relative to those in Germany. Moreover, market nervousness follow ing the June 26 closing of the Bankhaus I.D . Herstatt weighed on the mark. The spot rate eased, and after the mark slipped to the bottom of the European Commu nity (EC) band, the German Federal Bank began to sell substantial amounts of other EC curren cies as w ell as dollars. The Federal Reserve was able to acquire sufficient marks to reduce its swap drawings from a peak of $381.6 million equivalent in early June to $64.6 million by the end of July. In view of the domestic slowdown and severe strains in Germany’s credit markets following the Herstatt collapse, the German Federal Bank acted to maintain liquidity in the banking system 135 by offsetting the outflows of funds abroad. The authorities had not yet abandoned their restric tive monetary policy, however, since Ger many’s inflation rate of 6 to 7 per cent per annum remained high by recent historical standards, although still far below the inflation rates of most of Germany’s trading partners. In mid-August the German Federal Bank an nounced a 10-percentage-point reduction in re serve requirements on domestic liabilities, and interest rates in Germany held steady while interest rates in the United States and elsewhere rose to unprecedented levels. The incentives for arbitraging funds out of marks and into dollars and other currencies therefore widened, and the mark eased in the exchange market. Conse quently, in August the Federal Reserve was able to buy sufficient marks in the market to liquidate the remaining $64.6 million of its swap debt to the German Federal Bank and to accumulate working balances as w ell. In two instances, however, the Federal Re serve found it desirable to intervene to restrain sudden selling pressure on the dollar. On August 8 and 9, when market uneasiness during the transition of presidential authority in the United States was compounded by the release of dis couraging U .S . wholesale price figures for July, the Federal Reserve sold $20.8 million of marks from balances, along with smaller amounts of Dutch guilders and Belgian francs. Again, on September 3, after the German authorities proposed suspension of their deposit require ment on German residents’ borrowing abroad (the Bardepot), the Federal Reserve sold $16.2 million of marks from balances to check an abrupt decline in the dollar. Over the next few weeks the mark leveled off at about $0.3735, 10 per cent below its May peak. Meanwhile, interest rates in the United States and in the Euro-dollar market were be ginning to fall back sharply. Consequently, the major share of the continuing flows out of Ger many were deflected to other EC financial centers where interest rates were either un changed or easing only slightly. Thus, while holding steady against the dollar, the mark con tinued to require support at the bottom of the EC band, and it depreciated significantly against the Swiss franc as w ell. By the end of Sep 136 Federal Reserve Bulletin □ March 1975 tember German reserves had dropped by $1.9 billion from end-of-M ay levels. M eanwhile, the German authorities moved further to relieve the nervousness that remained in the market in the wake of the banking failures in Germany earlier in the summer. The German Federal Bank and the German Banking Association established additional backstopping facilities for providing liquidity assistance to banks. The German Fed eral Bank announced a further 8 per cent cut in reserve requirements on September 26, and the Government imposed comprehensive limits on banks’ foreign exchange positions effective October 1. In early October the balance in the exchange market began to tip in favor of the mark. As U .S . interest rates continued to decline and as fears of renewed hostilities in the Middle East resurfaced, the markets began to anticipate di versification of Organization of Petroleum Ex porting Countries (OPEC) funds out of dollars and sterling into marks and other continental currencies. Moderately heavy selling of dollars developed in early October, and the Federal Reserve resisted an excessive bidding-up of the mark rate by selling a total of $36.1 million equivalent of marks from balances on October 3 and 4. The rate steadied briefly, but on Oc tober 9, as the market assessed President Ford’s anti-inflationary proposals, a large buy order for marks pushed the spot rate up sharply, setting off a generalized speculative selling of dollars. To maintain orderly market conditions, the Federal Reserve sold $104.4 million equivalent of marks, of which $26 million was financed from balances and $78.4 million was drawn on the swap line with the German Federal Bank. In Germany the next day the German Federal Bank followed up by buying an even larger amount of dollars, and to consolidate the ensu ing improvement in the dollar rate, the Federal Reserve sold an additional $15.5 million of marks drawn on the swap line. The mark rate then steadied at about 4 per cent above earlySeptember levels. The Federal Reserve intervened on only two other occasions in October when the dollar suddenly came under selling pressure against the mark— selling a total of $9.7 million equivalent on October 15 and 23, financed by swap draw ings on the German Federal Bank. Late in October with evidence accumulating of a sig nificant slowdown of the German econom y, the German Federal Bank shifted to a somewhat less restrictive monetary policy, cutting its discount and Lombard rates Vi of a percentage point. The mark then eased, permitting the Federal Reserve to buy moderate amounts of marks as cover against swap indebtedness, which amounted to $103.6 million at the end of October. In early November, however, market senti ment turned even more bullish for the mark. In the United States increasing evidence that a severe recession was under w ay, while promis ing to swing the U .S . trade accounts into a smaller deficit than expected, gave rise to ex pectations of an accelerated and abrupt decline of interest rates here. The German trade figures for September had shown a renewed large sur plus, which— with another substantial surplus expected for October— rekindled speculation of a revaluation of the mark rate. In addition, a sharp advance of the Swiss franc, which had begun in October, was by November exerting an upward influence on the mark. The largescale capital outflows that had persisted since the summer began to be met to some extent by offsetting inflows. German banks sold some 1 billion marks of German public authority notes to foreigners, of which one-third was placed with OPEC countries. Moreover, some oil-exporting countries were arranging direct invest ments in German industrial enterprises. The exchange markets became, therefore, even more sensitive to any developments that would be likely to spur a further rise in the mark. Consequently, following news of a jump in U .S . unemployment, the mark was heavily bid up on November 6 and 7. Both the Federal Reserve and the German Federal Bank inter vened to moderate the rise, with the System selling a total of $49.2 million equivalent of marks, along with smaller amounts of Dutch guilders and Belgian francs. The mark sales were financed by a $25.6 million equivalent drawing on the swap line and by the use of balances. When the Swiss franc eased off toward midmonth, the mark followed suit, and F o r e ig n E x c h a n g e O p e r a tio n s the Federal Reserve was able to acquire balances in the market. Beginning on November 14, the mark itself became a renewed object of speculation in the market follow ing press reports that the German Government would not oppose a further rise in the mark rate. The spot rate was immediately bid up by almost 2 per cent. The German Federal Bank and the Federal Reserve both intervened on that day to resist the rise of the mark rate— the System selling $39.7 million equivalent drawn on the swap line. Speculation over a mark revaluation continued, however, and over the weekend the German Government denied that it was considering measures to raise the mark rate. Following this clarification, on November 18 the Federal Reserve resumed forceful intervention not only in marks— selling $56.7 million equivalent drawn on the swap line with the German Federal Bank— but also in Dutch guilders, Belgian francs, and Swiss francs. The German Federal Bank and other European central banks follow ed up on the next day, and the Federal Reserve sold an additional $16.2 million equivalent of marks, again fi nanced by a swap drawing. The revaluation talk did not die down com pletely, however, and the mark was bid up once again on November 22 and 25. The German Federal Bank and the Federal Reserve again intervened to resist the rise in the rate, with the Federal Reserve selling a total of $26.1 million equivalent drawn on the swap line. Thereafter, the announcement of an unexpected trade sur plus for the United States for October and a smaller-than-expected trade surplus for Ger many, coupled with a firming of Euro-dollar rates, brought a brief respite. The mark eased, and the Federal Reserve was again able to buy marks to cover swap indebtedness. In early December the Federal Reserve used these pur chases, together with existing balances, to repay $82.8 million equivalent of swap debt, reducing the total outstanding to $185.1 million. The exchange markets turned extremely thin during December as traders sought to square their books before the year-end. The dollar again came on offer, as interest rates in the United States and in Euro-dollar markets re 137 sumed their downtrend. For its part, early in the month the German Federal Bank stated that it would seek a somewhat more rapid growth of the monetary base in the coming year, and on December 19 it announced a further Vi per centage point cut in its discount and Lombard rates to 6 and 8 per cent, respectively. Never theless, a further rise of the Swiss franc and the latest of a series of highly publicized OPEC investments in major German industrial firms dominated market psychology. The mark was gradually bid up, and to dampen the rise the Federal Reserve intervened in modest amounts on 7 business days between December 16 and December 30. These sales totaled $75.1 m illion, of which $31 million was from balances and $44.1 million was drawn under the swap line. As the new year opened, the mark had already been bid up by some 11 per cent from its September levels. Even so, discouraging news on the U .S . economy and the further drop in U .S . interest rates fostered bearish sentiment toward the dollar, while renewed revaluation rumors in Germany and the rising Swiss franc prompted further speculative demand for marks. Both the German Federal Bank and the Federal Reserve intervened in modest amounts to limit the rise of the rate, but the mark advanced a further 4 per cent by January 24. Through that date the Federal Reserve had intervened in marks on five occasions in January for a total of $58.9 million equivalent financed by addi tional swap drawings. On January 27 the mark jumped by a further 1 per cent to $0.4356, the highest level since July 1973. By that time, however, European government officials were expressing increasing concern over the unrea listic levels to which the mark had risen, and the German Federal Bank and the Federal R e serve then began to intervene in heavier volume to check the mark’s rise. During the week of January 27 the Federal Reserve intervened on 4 days, selling a total of $94.6 million equiva lent of marks drawn on the swap line, as the German Federal Bank operated in similar mag nitude in Germany. The market began to respond to this more forceful approach, and the mark eased by 2 per cent from its highs to close at $0.4275. By the end of January, the System ’s 138 Federal Reserve Bulletin □ March 1975 swap commitments in German marks amounted to $382.7 million equivalent. S W IS S F R A N C In Switzerland during 1974, inflation was run ning at nearly 10 per cent, even though eco nomic activity was leveling off during most of the year. The Swiss National Bank, therefore, kept bank liquidity under close rein, while modestly easing reserve requirements and pro viding liquidity to the market through swaps from time to time in response to recurrent strains in Swiss capital markets. In the exchanges, movements of the Swiss franc continued to be dominated by “ hot-money flows” and shifting speculative sentiment. In the general decline of the dollar from late January to early May, the franc had been ratcheted upward by 23 per cent to $0.3588. At that point, a turnaround followed reports of agreement among the Federal Re serve, the German Federal Bank, and the.Swiss National Bank on a plan of concerted interven tion to counter any further erosion in dollar rates. The unwinding of long positions in francs and further accommodation of liquidity needs in Switzerland extended the decline of the franc, which eased some 6 per cent by the end of July. Its drop was more gradual than that of some other continental currencies, however, since the market was concerned that large short-franc positions arising from the foreign-currency losses disclosed during the preceding months might still have to be covered. With the dollar buoyant in August and early September, the Swiss franc continued to ease in a generally quiet market, falling to as low as $0.3300 or some 8 per cent below the May peak. Then, as dollar interest rates began to drop back more rapidly than the comparable rates for Swiss francs, the spot franc turned firm once again. The Swiss National Bank provided some $1 billion equivalent of liquidity assistance to the banks through both short-dated and 3-month swaps during September, thus avoiding an even sharper run-up in the franc rate before the quarter end. Nevertheless, demand for Swiss francs continued to swell, partly on the covering of outstanding short positions and partly in expectation that the franc, like the German mark, would benefit from any significant diver sification of OPEC funds out of dollars and sterling. Following a further reduction in the banks’ required reserves on October 8 , the money market in Switzerland had become quite com fortable. The Swiss authorities, therefore, took advantage of this opportunity to dismantle yet another of their previously imposed barriers against inflows by lifting the ban on interest payments to nonresidents on October 16. By that time, however, traders were increasingly concerned over possible diversification of OPEC funds, and the franc was bid up sharply in a thin market. In addition, political uncertainties elsewhere in Europe and in the Middle East generated flows into francs. The spot franc then began to advance sharply not only against the dollar but also against the German mark, the currency of Switzerland’s largest trading partner. This persistent rise posed a policy dilemma for the Swiss authorities, since intervention to halt the rise of the franc in the exchange mar ket— and thus avoid further erosion of Switzer land’s competitive position— would augment domestic liquidity and thereby undermine ef forts to curb inflation. The market began to sift every statement by Swiss officials to anticipate the point at which the Swiss National Bank might intervene in the exchange markets. Con sequently, the franc snapped sharply higher on November 7, following news reports from Switzerland that the National Bank was still unprepared to buy dollars, only to fall back nearly 2 per cent over the following days simply on reports that the Federal Reserve, the German Federal Bank, and the Swiss National Bank were prepared to intervene in a concerted man ner. Just after midmonth the franc came into de mand once again in the backwash of speculation over a revaluation of the German mark. By November 18 the franc had risen about 16 per cent against the dollar from its September lows and 5% per cent against the mark. As part of a concerted intervention in marks, Swiss francs, Dutch guilders, and Belgian francs that day and on the following day, the Federal Reserve sold a total of $12.5 million of Swiss francs, which Foreign Exchange Operations had been purchased directly from the Swiss National Bank. In response to this operation, the franc fell back by 6 % per cent over the next 2 days. The Swiss National Bank followed up on November 20 by reimposing the negative inter est charge, at 3 per cent per quarter, and a ban on interest payments, each on the increase in nonresident deposits above October 31 levels. The central bank also obtained authority to monitor banks’ forward sales to foreigners and to use swap transactions if necessary to enforce these new measures. These actions prompted even more of a scramble in the market to unload francs, and the spot rate dropped a further 2 per cent by November 21. Over the next weeks the market in Swiss francs was thinner and even more volatile than before, as dealers were sensitive to talk of new initiatives to discourage inflows. Under these circumstances, when mark revaluation rumors resurfaced the franc advanced a full 6 % per cent by November 26 before settling back. The Swiss National Bank then took further regulatory measures to limit the rise of the franc. On November 28 it reactivated the requirement that proceeds of foreign borrowings in Switzerland be converted immediately into foreign currency. Four days later it raised banks’ reserve require ments against deposit liabilities to nonresidents. The National Bank also announced it would again assist the banks with their year-end posi tioning by providing swaps. Ultimately, the National Bank provided $1 billion of year-end swap assistance and did an additional $500 million of 1- and 3-month swaps outside the usual quotas to influence market conditions. Even so, the market continued to push the rate up during December. On De cember 17, after the franc rose especially sharply, the Federal Reserve again intervened in both German marks and Swiss francs, selling a total of $26.5 million equivalent of francs, of which half was purchased outright from the Swiss National Bank and half was drawn under the swap line with that bank. The franc eased over the next days, and the Federal Reserve purchased francs in the market to repay $5.9 million equivalent of the swap debt. In the generally bearish atmosphere for the dollar, the Swiss franc continued to advance 139 even after year-end positioning. On January 6 the Swiss National Bank resumed outright in tervention in the spot market in Zurich, con firming its operation “ to maintain orderly ex change market conditions.” The Federal Re serve followed up with similar intervention in New York as part of its concerted intervention in both francs and German marks. These joint interventions continued over the following days, and at first the Swiss franc dropped back. The demand for francs soon picked up again, however, after it was reported that failure of a financial subsidiary of an Italian company would leave a major Swiss bank short of francs. As the market anticipated a large demand to cover a substantial volume of this subsidiary’s contracts maturing early in 1975, a more gener alized speculation in favor of the Swiss franc developed. The franc was heavily bid up to new record levels, while the Swiss National Bank continued to intervene, at times quite heavily. The Swiss authorities then resisted further up ward pressure by severely tightening recently imposed curbs on inflows of foreign funds. In particular, the ban on interest payments was widened to apply to all nonresident balances, the negative interest charge was raised to 10 per cent per quarter, banks were required to balance all foreign exchange positions daily, and provision was made whereby the National Bank could block Swiss franc liquidity resulting from dollar intervention. These new measures at first drew a strong market response, and the franc fell back. But, as the market grew doubtful that these measures could prevent a further rise in the franc as long as short franc positions overhung the market, the Swiss franc turned around and was soon outpacing other European currencies. By Jan uary 27 it had reached a new record of $0.4195, some 27 per cent above last summer’s lows. The Swiss National Bank then tightened its November regulation, limiting Swiss banks’ sales of Swiss francs to nonresidents. By this time the immediate demands for Swiss francs had slackened, and the dollar had begun to recover in other markets. Conse quently, pressure in favor of the Swiss franc let up, and the franc eased to $0.4014 by the end of January. During the month the Federal Reserve, operating on six different occasions, 140 Federal Reserve Bulletin □ March 1975 sold a total of $24.6 million equivalent of francs. Of this amount, $5.3 million was pur chased outright from the Swiss National Bank and $19.3 million was drawn under the swap line. Consequently, System drawings in Swiss francs were increased by $26.6 million equiva lent as a result of the December-January opera tions, bringing total Swiss franc indebtedness including that outstanding since 1971 to $397.8 million equivalent by the end of January. S T E R L IN G Last summer the United Kingdom was faced with severe financial, economic, and balance of payments strains. Industry was caught between high wage, raw material, and financing costs on the one hand and statutory limits on pricfes on the other. The ensuing squeeze on profits and corporate liquidity was restricting inventor ies, investment, and output. With industrial production not fully recovered from the disrup tion of the 3-day workweek earlier in the year, the new cutbacks threatened a more prolonged stagnation and a rising unemployment rate, while domestic inflation continued at a rapid rate. Meanwhile, the trade deficit had swelled to more than $6 billion in the first half of the year, of which close to $3 billion reflected costlier oil imports. At the same time, the worldwide slowdown of economic activity cast a shadow on export prospects. Although the exchange market sentiment re mained bearish toward sterling, the pound de preciated on a trade-weighted basis only slightly during August and September while slipping against the dollar some 2 per cent to around $2.33. Oil-related and other capital inflows roughly offset the United Kingdom’s large current-account deficit and helped bolster the spot rate. During the third quarter oil-exporting countries invested a net $ 2.2 billion in relatively high-yielding sterling assets. Oil companies also accumulated sterling, both spot and forward, in anticipation of future tax and royalty payments and for investments in North Sea exploration. The Bank of England operated on both sides of the market in August and September to smooth the impact of oil-related transactions. By early October, however, the inflow of oil-related funds tapered off, as concern over Britain’s economy continued and short-term sterling interest rates suddenly declined. In ad dition, there was some temporary nervousness ahead of the October 10 general election. The pound therefore tended to weaken against many of the continental currencies while holding roughly steady against the dollar. The market soon came into better balance, however, as new demand for relatively large October oil pay ments in sterling counterbalanced continuing sales by oil producers diversifying out of ster ling. Following the trend of other European currencies more closely, the spot pound firmed to $2.35 by early November. Meanwhile, adverse economic developments led to some apprehension ahead of the No vember 12 budget message. The worsening in flation had triggered successive rounds of threshold wage increases, and recently nego tiated wage settlements had cast doubt on the effectiveness of the Government’s “ social con tract” to achieve a voluntary pay restraint. Prospects of rising unemployment were in creasingly underscored by news of further layoffs and business failures. The market was somewhat reassured by new budget proposals to alleviate corporate liquidity strains without having an excessive over-all stimulative impact as many market participants had feared. More over, the extension of the Bank of England’s supplementary deposits scheme to allow the banks to help provide sufficient corporate fi nancing without encouraging a more rapid growth of the money supply was also viewed positively. The market was caught by surprise, however, by an accompanying announcement from the Chancellor of the Exchequer that the United Kingdom’s guarantee arrangements on official holdings of sterling would be allowed to expire in December. As these guarantees did not apply to the large accumulation of sterling holdings since September 1973, the market had taken in stride Australia’s announced withdrawal from its arrangement in September 1974. But since some dealers saw total abolition of guarantees as possibly stimulating accelerated diversifica tion out of sterling, heavy selling pressure Foreign Exchange Operations quickly materialized and the spot rate dropped below $2.30. After substantial support by the Bank of England, as well as renewed oil-related demand for November royalty payments, the market steadied and sterling moved narrowly against the dollar through early December. Never theless, with other currencies advancing against the dollar, sterling lost further ground against the currencies of Britain’s major trading partners. During October and November half of the Government’s $2.5 billion Euro-dollar loan and $400 million of the British Water Council’s loan from Iran were taken into foreign exchange reserves, which increased on balance about $650 million for the 2 months. Just before mid-December it was reported that Saudi Arabia had informed the Aramco group that it wished all future oil payments to be made exclusively in dollars. The subsequent liquida tion of sterling previously acquired by Aramco members and prospects of even more diversifi cation of OPEC funds largely into continental currencies triggered new selling pressure on the pound. The Bank of England resisted the rate decline with substantial support. Thereafter, Saudi Arabia reaffirmed publicly that it would continue to invest in sterling assets, and other Middle East sterling holders followed up with similar reassuring statements. The market then steadied and, when a severe squeeze developed in the Euro-sterling market, the pound benefited from some covering of short sterling positions. Over the remainder of the year the spot rate traded narrowly around $2.34 and the tradeweighted value of sterling recovered from the record low set on December 12. During January sterling once again lagged behind the strong advance of the major conti nental European currencies against the dollar. New fears about corporate solvency in Britain and about possible diversification of sterling balances exerted a drag on sterling. Later in the month the favorable impact of improved trade figures for December was more than offset by successive reductions in the Bank of England’s minimum lending rate to 11 per cent and by corresponding declines in London money mar ket rates. Consequently, the pound weakened further against major continental currencies al 141 though rising somewhat against the dollar to $2.38 by the month-end. The Bank of England provided further moderate support to check the erosion. Over the 2 months of December and January, official dollar sales, together with other foreign-currency payments, were partly offset by additional drawings on the U.K. Govern ment’s $2.5 billion Euro-currency loan, but Britain’s reserves nevertheless declined by about $1 billion. JA PA N ESE Y E N A $6 billion increase in Japan’s oil import bill in the first half of 1974 and sharply higher commodity prices had driven Japan’s current account into deep deficit early in the year. This was largely financed by heavy short-term bor rowings by Japanese banks, both in the Euro dollar market and in the United States. By midsummer, however, with the Euro-markets under unusual strains, some Japanese banks were reportedly approaching credit limits and facing increasing costs of funds there. The Jap anese authorities requested the banks to refrain from excessive borrowing, and then the demand for spot dollars in Tokyo increased. By August 22 the yen had fallen more than 10 per cent from its late-March 1974 peak to $0.003294, its lowest point since it was floated in February 1973. The Bank of Japan from time to time inter vened in the market to avoid wide fluctuations in the yen rate, providing support through mod erate sales of dollars. The authorities also took a series of steps in August and early September to relax impediments to inflows of foreign funds to Japan. Controls were eased on net conver sions of dollars into yen by foreign banks, on prepayments for Japanese exports, and on nonresident investments in certain Japanese se curities. In addition, reserve requirements on nonresident “ free yen” deposits were reduced to zero. These measures helped relieve the pressure, and the yen rate steadied above its lows. Meanwhile, Japanese economic activity re mained sluggish after a sharp decline early in the year. Upward pressure on wholesale prices 142 Federal Reserve Bulletin □ March 1975 abated, but consumer prices continued to rise rapidly. Therefore, the Japanese authorities maintained their highly restrictive monetary policy. With domestic sales sagging and inven tory financing becoming increasingly burden some, Japanese companies placed greater em phasis on exports. As shipments abroad surged, Japan’s trade balance, after a $2.7 billion firsthalf deficit, swung decisively into surplus by late summer. Successive reports of this turn around contributed to the improvement in mar ket sentiment in September. After mid-Sep tember, wire service reports that a $1 billion loan had been arranged between an oil-produc ing nation and Japan sparked active bidding for yen. Later in the month figures were released showing a current-account surplus for Au gust— the first since the escalation of oil prices the winter before— and the yen was bid up further to a level 3 per cent above its August lows. By early October the yen had steadied around $0.003333, but market uncertainties persisted, and the yen came under some renewed pressure in late October. Trading then came into better balance during November and early December, as the Japanese authorities further relaxed re strictions on capital inflows from abroad. The Ministry of Finance permitted Japanese cor porations to use the proceeds of certain foreign bond issues for domestic purposes, and several companies quickly moved to arrange new issues abroad. The Bank of Japan also asked Japanese banks to reduce as much as possible the addi tional cost of their borrowings in the Euro-dollar market. Continuing market concern over prospects for the yen resurfaced in late December and early January. Pressure on the yen gradually eased, however, as dealers reacted to news of Japan’s strong export performance in December and as new Japanese corporate borrowings from abroad were converted into yen. Moreover, the market responded favorably to the Bank of Japan’s reaffirmation of its policy of restraint, until prices had stabilized, and to the generally antiinflationary thrust of the Government’s draft budget. By late January the yen had begun to advance in sympathy with the sharp rise of European currencies against the dollar, reaching $0.003363, some 3 per cent above the August low. FRENCH FR A N C In contrast to many other industrial countries, France enjoyed real economic growth and rela tively low unemployment during the year. On the other hand, the inflation rate remained rela tively high, compared with price trends in Ger many and in neighboring countries. Moreover, the trade account, which had been in moderate surplus throughout 1973, swung into deep defi cit by May. In part, this deterioration was in response to relatively buoyant domestic de mand. More importantly, it reflected a $6 billion increase for 1974 in France’s oil import bill, as well as the adverse shift in French terms of trade following the downward float of the franc early in the year. To counter the worsening inflation and the weakening trade position, the French Govern ment imposed progressively more stringent economic policies. In June the Government adopted a new anti-inflation program containing credit, tax, price control, and energy-saving measures. In September it followed up by re newing ceilings on credit growth (except on credits to finance export production) and by announcing a stringent $11 billion limit on oil imports for 1975. Meanwhile, around midyear, the Bank of France had hiked its discount rate to a record 13 per cent, stiffened penalties for banks exceeding official credit ceilings, and maintained a severely tight money market. As monetary policies in other countries were grad ually relaxed, substantial interest rate differen tials in favor of the French franc emerged. In response, short franc positions—built up before the floating of the franc and the French presi dential elections in May—began to be covered and French enterprises stepped up their borrow ings abroad. The franc remained relatively firm during the late summer and early fall. Although it eased from its early-August levels as the dollar strengthened around midmonth, its decline was less pronounced than for most currencies. Fa vorable interest rate incentives, together with Foreign Exchange Operations news of more bank failures and large exchange losses elsewhere in Europe, prompted further repatriations of funds and a building-up of franc balances by nonresidents. By the end of August the franc had resumed an uptrend that gained momentum after mid-September, when discus sions of multilateral proposals and direct deals for financing European oil deficits helped to dispel some of the market’s concern over France’s large oil deficit. The franc at times outpaced the German mark and other European currencies in the general upswing of currencies against the dollar, rising 4 per cent to $0.2145 by November 7. To moderate the rise of the franc, the Bank of France made increasingly heavy purchases of dollars, thereby contributing to the $600 million increase in French reserves during the 3 months to the end of October. Meanwhile, the economic climate in France was deteriorating. The high rate of inflation generated growing labor unrest, and by early November a number of strikes erupted that threatened to disrupt production. At the same time, the Government’s austerity measures were beginning to bite, causing an abrupt slowing of output and a jump in unemployment. Against this uncertain background, the rise in the franc faltered. Indeed, while holding steady against the dollar through much of November, the franc dropped to its lowest levels against the German mark and other continental currencies in 5 months. Following reports of large-scale layoffs and short hours, the labor strikes ended, and pressure against the French franc eased. Late in the month market tone improved further after President Giscard d’Estaing relieved growing concern over unemployment by promising re newed economic expansion for 1975 and by providing special assistance to industries most vulnerable to the slowdown. By early December the franc was again in demand. French interest rates remained near their peak levels with the 3-month Euro-franc rate some 8 percentage points above the corre sponding Euro-dollar rate. Moreover, France’s trade deficit was narrowing far more rapidly than had been forecast, as imports slackened in the face of weakening domestic demand and lower energy requirements. In addition, news of a $1 billion loan agreement with Iran and other suc 143 cessful Middle East negotiations promised to bolster France’s external position in the coming year. The franc climbed sharply, therefore, again outpacing other currencies as the dollar declined in December. The Bank of France resumed intervention, buying dollars regularly to keep the franc’s rise in line with other cur rencies. After the first week in January, the French Government began gradually to relax its restric tive monetary policy. The Bank of France cut its discount rate 1 percentage point to 12 per cent on January 9. In addition, minimum reserve requirements were reduced on January 21, and the regulation of bank credit was made more flexible. Nevertheless, French interest rates re mained well above those in most other markets and the French franc continued to advance. Boosted further by news of a trade surplus in December— the first monthly surplus since 1973— the franc moved up to $0.2349 just be fore the end of January to trade nearly 14 per cent above its mid-August lows. IT A L IA N L IR A Midsummer 1974 marked a significant turning point in Italian economic and balance of pay ments trends. During the first half of 1974, inflation was continuing at a rate two to three times faster than in most other major industrial countries, as sharply higher costs for imported oil and other commodities, production bottle necks in some industries, and an expanding Government budget deficit helped perpetuate the inflationary spiral. The current-account deficit had more than doubled under the weight of a $6 billion increase in oil imports for 1974, exerting persistent pressure on the lira in the exchanges. The authorities had intervened heavily to prevent a substantial depreciation of the lira from worsening domestic inflation. The bulk of this intervention had been financed by new foreign borrowings, including EC short term assistance, and by midyear Italy’s me dium-term indebtedness to the Euro-dollar mar ket stood at $8 billion. Meanwhile, to eliminate the non-oil deficit, contain inflation, and rein 144 Federal Reserve Bulletin □ March 1975 in public spending, the authorities progressively stiffened monetary and fiscal policies and im posed an import-deposit scheme. By midyear these measures were beginning to take hold. A sudden weakening of domestic demand was narrowing the non-oil component of the trade deficit, and declines in world com modity prices promised an unexpected further improvement. The severe tightening of domestic liquidity was stimulating a substantial influx of short-term funds, as Italian commercial banks borrowed heavily in the Euro-dollar market to finance domestic lending. Conversions of these borrowings had a steadying effect on the Italian lira in the exchanges, and the Bank of Italy had been able to add to its reserves. By late July the Italian authorities had become concerned that the rapid growth of bank bor rowing abroad would frustrate the extremely restrictive monetary policy and might aggravate existing strains in the international capital mar kets. Therefore, the authorities instructed banks to limit their net foreign indebtedness to July 19 levels, and the net inflow of funds began to taper off in early August. Then, after Italy’s severe liquidity crunch eased somewhat with the exemption of all agricultural products from the import-deposit scheme, the repayment of foreign borrowings picked up and continued throughout the next several weeks. By the end of September Italian banks had reduced their net foreign indebtedness by almost $1 billion. As these repayments coincided with the normal seasonal slackening of tourist receipts, the lira periodically came under some selling pressure during August and early September. The Bank of Italy provided occasional moderate support for the lira rate to prevent it from weakening too rapidly against other European currencies. In the meantime, Italy obtained new official credits to cover its current-account deficit. In early August the Italian authorities drew a total of $622 million equivalent from the Interna tional Monetary Fund (IMF) against its gold tranche and the first tranche of its $ 1.2 billion standby credit. Later in the month the Bank of Italy obtained $2 billion by way of a reciprocal gold-dollar deposit with the German Federal Bank. (In that transaction, the gold was valued at 80 per cent of average recent market prices or about $120 per ounce.) Then, in mid-Sep tember, Italy borrowed $315 million from the IMF oil-financing facility and renewed its Euro pean Monetary Cooperation Fund credit of $1,885 million. The Government also announced a second takedown of $540 million equivalent from Italy’s IMF standby credit. The new bor rowings, which were taken into official reserves over the 2 months through the end of Sep tember, helped improve market sentiment, and the lira held about 3 per cent below its late-July levels until early October. Meanwhile, the Italian economy had mar kedly slowed down, with industrial output fall ing sharply. Domestic price inflation continued to worsen, however. As Cabinet disagreement over continuation of the Government’s austerity program surfaced, leading to Prime Minister Rumor’s resignation on October 3, outflows of funds put renewed pressure on the lira. The exchange rate slipped about 1 per cent against the dollar and 4 per cent against other EC currencies, while the Bank of Italy provided heavy support in the first half of the month to moderate the lira’s decline. Although selling pressures temporarily subsided toward the end of October, the lira remained relatively weak and did not participate in the general upsurge of European currencies in November. By the end of that month the lira had depreciated by a further 1 per cent against the other EC curren cies, while holding steady against the dollar. Over the 2 months, intervention sales of dollars were mainly responsible for a $ 1.2 billion de cline in official reserves. Market sentiment improved considerably in December, as the new Government under Pre mier Moro moved swiftly to implement its eco nomic program. Monetary policy was kept re strictive, although the Bank of Italy made a modest cut in its historically high discount rate. In addition, measures to discourage crude oil imports were adopted and plans for expanded capital investments in energy, agriculture, and public works were proposed. In the exchanges, a significant reflow of funds, which had been moved out of the lira at the height of the Cabinet crisis, was reinforced by continuing tight money market conditions. Furthermore, the slowdown of economic activity was dampening import Foreign Exchange Operations demand. Thus, the lira rate firmed almost 2.5 per cent during December. After the year-end, however, the lira again came on offer. The Bank of Italy relaxed its restrictive stance somewhat further and, as li quidity strains in Italy eased during January, short- term reflows slowed. In addition, although Italy’s non-oil trade was improving, a seasonal weakening in the trade balance and a bunching of oil payments depressed the rate. As on other occasions, moreover, pressure on the dollar occasionally spilled over onto the lira, and it lost substantial ground against the EC curren cies. The Bank of Italy again provided support, and by the month-end the immediate pressures had lifted. On January 31 the lira rate stood at $0.001564, about 1 per cent higher than at the outset of the reporting period. N E T H E R L A N D S G U IL D E R The Netherlands strong current-account surplus in 1974, together with expectations of further improvement in the balance of payments in 1975, kept the Dutch guilder strong against both the dollar and other European currencies during the reporting period. Prospects for increased natural gas exports blunted the impact of higher prices on oil imports, while port and shipping services were improving the net invisible bal ance. Reports of a continuing large current-ac count surplus had spawned revaluation rumors in late July. Speculative demand for guilders had been countered by coordinated Netherlands Bank-Federal Reserve intervention, and the rumors were spiked by an official denial of any revaluation intentions. The guilder then turned lower, dragged down by the declining German mark, and substantial intervention against marks was required to maintain the limits of the EC band. The only Federal Reserve intervention in guilders late in the summer came on August 9 when $5.3 million equivalent was sold along with other currencies, as markets were briefly unsettled during the period of transition of pres idential authority in the United States and after release of disappointing U.S. wholesale price 145 figures. The sale of guilders was financed by a drawing on the swap line with the Netherlands Bank and, as the guilder quickly resumed its decline, sufficient guilders were acquired to liq uidate the swap commitment. By early Sep tember, the guilder had fallen 3 3 per cent to A $0.3663. Money market conditions in Amsterdam then tightened, as seasonally heavy tax payments pushed up Dutch interest rates at a time when a cut in reserve requirements in Germany was adding to liquidity in Frankfurt. In addition, the Dutch Government announced, as part of its 1975 budget proposal, a steep increase in the price of natural gas, estimated to add $500 million to the Netherlands’ 1975 exports. Con sequently, the guilder was again bid up, and as the EC snake came under increased pressure, the Netherlands Bank stepped up its purchases of marks. The Dutch central bank also began to provide substantial amounts of guilders through 1- to 3-month dollar swaps with the commercial banks, lessening domestic liquidity strains. In the 2 months August-September, Dutch official reserves increased by about $1 billion. In October the guilder participated in the upward movement of continental European cur rencies against the dollar, with little reaction to a percentage point reduction in the Netherlands Bank’s discount rate to 7 per cent late in the month. In view of the relative positions of EC snake currencies in November, when the Euro pean currencies began to advance more sharply, the Federal Reserve supplemented its interven tion against marks by offering guilders as well. The Federal Reserve sold $6.5 million equiva lent of guilders on November 7 and a total of $22 million equivalent during the coordinated central bank intervention of November 18 and 19. The Netherlands Bank followed up in the Amsterdam market by purchasing moderate amounts of dollars. The System’s sales were financed by drawings on the swap line and were repaid through market purchases when the guilder temporarily declined. Dutch reserves increased another $550 million during October and November, largely as a result of continued dollar swap transactions with the Dutch banks. By early December the guilder strengthened 146 Federal Reserve Bulletin □ March 1975 again to a level 6.5 per cent above its September low. Meanwhile, the Dutch Government, increas ingly concerned about rising unemployment and sluggish domestic economic activity, particu larly in the construction industry, had an nounced new measures to stimulate the econ omy. Taxes on wages and salaries would be cut as of April 1, 1975, investment incentives were broadened, and private-sector payments for so cial services were reduced. Together with the planned deficit in the September budget, these actions would provide substantial fiscal stimulus while monetary policy would remain moderately restrictive to counter inflationary pressures. Thus, Dutch interest rates held above those in some other financial centers and provided an incentive for funds to move into guilders as the dollar generally remained on offer in the ex changes in December. The Dutch authorities again provided liquidity through dollar swaps with commercial banks and also bought modest amounts of dollars outright in the spot market. For its part, the Federal Reserve also intervened in guilders in New York on December 17 and 27, selling a total of $9.6 million equivalent of guilders along with other currencies to cush ion the decline in dollar rates. These sales were financed by additional swap drawings, of which all but $3.2 million was repaid through subse quent market purchases. The guilder never theless was pulled sharply higher in January by the speculative rise of the mark and Swiss franc. It reached a peak of $0.4175 on January 27— 14 per cent above its September low—before dropping back somewhat on subsequent days along with other currencies. B E L G IA N F R A N C The slowdown that set in around mid-1974 in Belgium’s economy was more gradual than in most other industrial economies. The pace of domestic inflation, on the other hand, remained high relative to that for Belgium’s principal trading partners. Consequently, the authorities maintained a restrictive monetary policy, with the result that Belgian interest rates rose to levels above those prevailing in most other continental financial centers and remained rela tively firm throughout the second half of the year. The pull of high yields in Belgium prompted both a reflux of previous outflows and inflows of new short- and long-term capital. These inflows, together with a current account that was still in surplus despite higher imported oil costs, provided a continuing buoyancy for the Belgian franc in the exchanges. Accordingly, in August the Belgian franc declined more gradually than most other Euro pean currencies against the dollar, while holding just,below the top of the EC band. The Federal Reserve sold $2.5 million equivalent of Belgian francs, along with its sales of other currencies, to forestall a sudden slippage in dollar rates on August 9. Of this, $1.7 million was financed by a drawing on the swap line with the National Bank of Belgium, and the remainder was drawn from System balances. The swap commitment was promptly repaid as the Belgian franc was pulled down by the German mark. In early September the commercial rate bottomed out at $0.025275, almost 4 per cent below earlyAugust levels. After mid-September, however, the franc began to rise again. Liquidity in Belgium was tightened further by tax payments and by higher reserve requirements on call deposits. More over, there was a shift of funds into francs out of German marks in response to a tightening of foreign exchange restrictions both in Ger many and Luxembourg. In November the rise of the Belgian franc accelerated, as pressure on the dollar generally intensified. To dampen the franc’s advance and avert a build-up of pressure within the EC snake, the National Bank of Belgium frequently made modest purchases of dollars in Brussels. In New York the Federal Reserve offered Belgian francs, along with other European currencies, to smooth the decline in dollar rates on November 7, 18, and 19, and December 17. Total sales of Belgian francs amounted to $13.7 million equivalent, of which $13.2 million was drawn on the swap line and subsequently was repaid through market pur chases. The remainder was drawn from bal ances. By the year-end the slowing pace of Belgian economic activity had induced an easing of Foreign Exchange Operations credit demands, and Belgian interest rates turned down. Late in January, in view of do mestic and international interest rate trends, the National Bank relaxed its credit policy by re ducing the discount rate by Vi of a percentage point to 8 3 per cent, raising ceilings on credit A growth, and releasing reserves against bank time deposits. Nevertheless, the decline in Belgian interest rates lagged behind those elsewhere. The Belgian franc thus held at or near the top of the EC band, requiring the central bank to purchase moderate amounts of other partici pating currencies. As the European currencies generally strengthened against the dollar, there fore, the commercial franc advanced to $0.028600 on January 31, and the National Bank purchased further small amounts of dollars to resist the rise. At this level the commercial Belgian franc stood almost 13 per cent above its September low. As of January 31 System swap commitments with the National Bank of Belgium totaled $261.8 million equivalent of Belgian francs, all incurred prior to August 15, 1971. C A N A D IA N D O L L A R The gradual decline of the Canadian dollar that had begun in June 1974 continued with only brief interruptions during the 6 -month period u n d e r r e v i e w . The d o w n t r e n d p r im a r ily stemmed from a progressive erosion of Can ada’s trade surplus during 1974 and an increas ingly pessimistic market assessment of pros pects for 1975. Export growth fell off sharply as a result of the severe slackening of U.S. demand and the break in world commodity prices that tended to weaken Canada’s terms of trade. By contrast, the deceleration of economic activity in Canada was more moderate than elsewhere, with a still buoyant investment de mand sustaining imports of capital goods. Con sequently, many published Canadian forecasts showed the Canadian export surplus of $706 million for the first half of 1974 swinging into deficit by early 1975. Whereas trade deficits in earlier years had been financed by large capital inflows, prospects for long-term inflows were now uncertain and short-term capital flows were 147 largely responding to the shifting interest rate incentives between Canada and the United States. In early August, when the near-record levels of dollar interest rates yielded strong disincen tives against Canada, selling of Canadian dollars intensified as U.S. corporations repatriated funds to their home offices. Labor unrest in Canada further depressed the market. The spot rate fell almost 1 per cent to a low of $1.0109 by August 28. The Bank of Canada intervened to avoid too rapid a decline, and during August Canada’s reserves fell $160 million. In Sep tember and October, as the retreat of U.S. short-term rates was underscored by declines in U.S. prime rates, the Canadian dollar recovered somewhat. Positioning by Canadian banks in anticipation of their October 31 fiscal year-end and of several conversions of foreign borrow ings also temporarily spurred demand for the Canadian currency. But, by late October, the spot rate was again easing. Meanwhile, the sharp production cutbacks in U.S. output were exerting an increasingly heavy drag on the Canadian economy. As demand for credit weakened, Canadian banks lowered their prime rates. In addition, the Bank of Canada cautiously eased the restrictive stance main tained during the first half of the year by reduc ing its discount rate to 8 % per cent, the first cut from the peak 9 lA per cent level established in July. Shortly thereafter, chartered banks’ secondary reserve requirements were lowered 1 per cent to 7 per cent. Then, on November 18, the Government announced a somewhat more stimulative budget for the fiscal year beginning April 1975, featuring cuts in the personal in come tax. These actions were largely in line with market expectations, and the Canadian dollar fluctuated narrowly between $ 1.01 and $1.0150 through mid-December. Late in the month, however, market senti ment toward the Canadian dollar worsened again. News of a Canadian trade deficit of $149 million for November confirmed expectations of a continuing deterioration in Canada’s underly ing payments position, and the market was expecting another cut in the central bank dis count rate. As Canadian banks added to their U.S. dollar positions and commercial leads and 148 Federal Reserve Bulletin □ March 1975 lags worsened, the Canadian dollar fell to a 12-month low of $1.0004 on January 9. Several days later, the Bank of Canada, hav ing reduced secondary reserve requirements by another percentage point in early January, lowered its discount rate by another V of a 2 percentage point to keep it in line with the general decline of Canadian money market rates. Since exchange dealers had actually counted on a larger cut and there were substan tial conversions of Canadian provincial foreign borrowings that boosted the spot rate, the Ca nadian dollar briefly rebounded to nearly $ 1.01 . Once the conversions were completed, the rate turned lower again. After the final trade figures for 1974 were released, revealing a steep ero sion of Canada’s trade surplus to Canadian $419 million for the year— little more than a fifth of the 1973 level— the Canadian dollar eased to $1.0008 on January 31. This represented a 2per-cent decline against the dollar since August levels and a substantial depreciation against virtually all other major currencies. E U R O -D O L L A R The Euro-currency markets continued to suffer from the erosion of confidence that afflicted international banking following the failure of banks in several countries last year. Persistent nervousness in the market was reflected in new cuts last fall in credit lines to many market participants. In particular, smaller and even medium-sized banks and those of certain coun tries under balance of payments pressure re mained subject to rather close and, in some cases, increasingly tight credit ceilings by their traditional suppliers. The multitiered rate struc ture that had emerged last spring and summer, therefore, persisted. The strains in the market gradually subsided, however, with the result that the differentials between the rates charged to different classes of banks narrowed and al most disappeared early in 1975. The improved market tone owed much to an announcement by the Bank for International Settlements on September 10 that the central bank governors meeting at Basle, following a discussion of the problems of a lender of last resort in the Euro-markets, had concluded that means are available for the provision of tempo rary liquidity and will be used if and when necessary. The market was further reassured when consortium banks responded to the Bank of England’s request for firm commitments from shareholders to support the banks’ operations if they ran into problems at any time. Another boost to market confidence was given by an official statement that the “ Federal Reserve is prepared, as a lender of last resort, to advance sufficient funds, suitably collateralized, to as sure the continued operation of any solvent and soundly managed member bank that may be experiencing temporary liquidity difficulties as sociated with the abrupt withdrawal of petro dollar—or any other— deposits.” After a fairly steep decline in outstanding deposits last summer, the Euro-currency market resumed its expansion in the final quarter of last year, albeit at a much reduced rate. Its continued growth benefited greatly from renewed place ments of sizable OPEC deposits, which brought the total for the year to an estimated $23 billion, or 40 per cent of OPEC countries’ surpluses. Thus, the market remained the major receptacle for those funds that the oil-producing countries were unable to spend for goods and services and did not employ for grants-in-aid and loans to oil-importing countries. During the summer and fall the market also benefited from sizable advances by U.S. banks to their branches, no tably those located in the Bahamas, which then passed on these funds to a variety of bank and nonbank borrowers. As OPEC and other major supplier countries added further to their Euro-currency holdings, over-all liquidity in the market improved, but the market continued to suffer from a maldistri bution of liquidity. The very large banks in the market had ample funds at their disposal, often more than they desired in view of their capital and surplus positions. While the very large banks grew in strength and importance, the role of some of the medium-sized and smaller banks became stationary or diminished. A few banks unable to command the relatively attractive rates offered to their bigger competitors actually scaled down their operations. It was the medium-term Euro-loan market Foreign Exchange Operations that was most seriously affected by the strains in international banking. Last summer and fall the rate of increase in the volume of mediumterm loans slowed down considerably, as many syndicate participants no longer were able to secure funds at competitive interest rates. Con sequently, the syndication of balance of pay ments and project loans carrying very distant repayment schedules diminished significantly. Reduced competition permitted lenders to widen the spreads of rates on loans over the rates they paid for funding these loans and to tighten other terms and conditions, including the shortening of average maturities for medium-term loans funded with short-term funds on a floating-rate basis. In more recent weeks, however, as money market conditions in many parts of the world 149 became easier, spreads between loan and de posit rates were again narrowing somewhat. Interest rates in the market, after having risen to virtually unprecedented levels, dropped in September and October in response to sharp across-the-board declines in U.S. money market rates. The downtrend in Euro-dollar rates stalled toward the end of November, as the decline in U.S. domestic rates slowed and as year-end positioning prompted some bidding for dollar funds. Early this year rates resumed their precipitous fall in response to actual and ex pected declines in U .S. prime rates and other interest rates. By the end of January, 3-month rates had dropped below 8 per cent, almost one-half of the peak levels reached last sum mer. □ 150 Statements to Congress Statement by A rthur F. Burns, Chairman, B oard of G overnors of the Federal R eserve System, before the Committee on Banking, Housing and Urban Affairs, U.S. Senate, Feb ruary 25, 1975. I am pleased to meet with this committee today to present the views of the Board of Governors on Senate Concurrent Resolution 18. This resolution consists of two parts. The first part directs the Federal Reserve System to “ take appropriate action in the first half of 1975 to increase the money supply at a rate substantially higher than in recent experience . . The second part of the resolution directs the Federal Reserve to “ maintain long-run growth of the money supply commensurate with the econ omy’s long-run potential to increase production, so as to effectively achieve the goals of maxi mum employment and stable prices.” To appraise the need for this Senate resolu tion, it is essential to understand our Nation’s economic and financial condition and the recent course of monetary policy. Our economy today is suffering from a serious recession. That such a development would take place, sooner or later, has long been clear to students of business cycles, who watched with increasing concern the gathering momentum of inflation. This round of inflation got under way in our country in 1964; its pace quickened in subsequent years with the piling up of Federal deficits and the devaluation of the dollar, and it became dangerously rapid in 1973 and 1974. As is characteristic of the late stages of an inflationary boom, speculative activities flourished, particularly in real estate markets, while industrial efficiency languished. During 1973 and much of 1974, purchasing agents found themselves scrambling for materials, component parts, and equipment; order books of business firms became overfull; delays in deliveries became longer and more frequent; costs and prices soared; and the demands for credit increased rapidly and outran available supplies. As a result of these developments, our Na tion’s productive capacity suffered a setback. Consumer purchasing power eroded; the real value of the wages, savings deposits, pensions, and life insurance policies of the American public diminished. Corporate profits declined— a fact that received little notice because of accounting techniques that had been designed for inflation-free times. Financial markets un derwent exceptional stresses and strains, and interest rates soared to record levels. In short, inflation led to this recession as it has done time and again in the past. And what we are now experiencing, most other industrial countries are likewise experiencing; for the inflationary boom of recent years reached worldwide proportions. In our country the Government has already taken some significant actions to mitigate the forces of recession that emerged last fall and that since then have spread across the economy. There is now a need for additional measures to cushion the recession and to encourage early recovery in economic activity. Yet, as we go about this urgent task, we cannot ignore the longer-run implications of the policies that we undertake. Defeat of inflationary forces must remain a major goal of public policy. Unless we keep this firmly in mind, we may have to contend with still more serious economic trou bles a year, two, or three from now. In recent months the Federal Reserve has taken numerous steps to reduce interest rates and to enlarge supplies of credit, and thus moderate recessionary forces. Open market operations became more accommodative last summer, and short-term market interest rates began to move down promptly from the exceptionally high levels reached in July. By early autumn evi Statements to Congress dence had accumulated that economic activity was weakening and that advances in commodity prices were beginning to moderate. Open mar ket operations, therefore, were persistently directed towards more ample provision of re serves to the banking system. Of late, open market policy has been rein forced by other monetary instruments. The dis count rate was reduced on three occasions— in December, January, and again early this month— from 8 per cent to 6 % per cent. Re ductions in member bank reserve requirements were also ordered— in September, November, and January, releasing a total of nearly %2Vi billion of reserves to the banking system. These easing actions by the Federal Reserve were taken during a period of weakening de mands for private credit. As auto sales slumped, so also did the growth of consumer instalment credit. In fact, on a seasonally adjusted basis, total instalment credit outstanding has actually been falling since October of last year. As industrial production declined, so also did busi ness needs for short-term financing. Moreover, the rate of expansion of mortgage credit has continued to run far below the pace of 1973. In these circumstances the actions taken by the Federal Reserve since last summer to aug ment the supply of loanable funds have had a dramatic effect on short-term market interest rates. For example, the Federal funds rate— the rate banks pay when borrowing reserves from one another— has declined by more than 7 per centage points from the peak level registered in July of last year. The interest rate on short term commercial paper has declined from over 12 per cent last July to around 6 per cent now. And the prime rate has fallen from 12 to 8 V 2 or 8 3 per cent. A Long-term market interest rates have also declined, although much less than short-term rates. With inflation continuing and still in prospect, a sizable inflation premium inevitably attaches to long-term interest rates. Moreover, corporations have issued exceptionally large amounts of long-term bonds in recent months, in part because of their desire to lengthen debt and thereby improve their liquidity position. The beneficial effects of easier conditions in financial markets are not registered solely in 151 the behavior of interest rates. For example, commercial banks responded initially to the greater availability of reserves by repaying bor rowings from the Federal Reserve and by taking other steps to improve their liquidity. Many banks became overextended during the credit expansion of 1971-74, and a strengthening of their financial position was needed to lay the basis for subsequent expansion of lending. The liquidity of nonbank depositary institu tions has also improved. Enlarged inflows of deposits to savings and loan associations have permitted these suppliers of home mortgage funds to reduce their indebtedness and to re plenish liquid assets. The full benefits of these developments for housing finance will not be felt for some time, but the improved deposit inflows have already had an effect on mortgage rates. Rates on new conventional home mort gages have typically declined by about a full percentage point from their peaks of early au tumn, and lenders are also becoming more ac tive now in seeking out borrowers. In short, financial conditions have eased on a broad front. The liquidity of banks and thrift institutions has improved; short-term interest rates have dropped sharply; long-term interest rates have also come down; an enormous vol ume of long-term securities has been success fully marketed; tensions and uncertainties that afflicted financial markets earlier last year have diminished; and stock prices have been rising briskly of late. Thus, developments in financial markets have been laying the basis for recovery in economic activity, and that process is continuing. Interest rates have fallen further in recent weeks, even though Treasury financing needs have grown and market participants have begun to anticipate the massive Federal deficits that, unhappily, are now in prospect. As I have already noted, these needed im provements in financial markets have been ac tively encouraged by Federal Reserve policies. Nonetheless, concern is being expressed in some quarters that we are not doing enough to stimulate monetary growth. The Board does not share this judgment. Ours is still largely a free economy, and a reasoned evaluation of Federal Reserve policy must take into account the vital 152 Federal Reserve Bulletin □ March 1975 role played by decisions of private borrowers and lenders. The Federal Reserve can supply the banking system with reserves through open market operations or through reserve requirement changes; but if banks choose to repay debt or rebuild their liquidity, these actions will have little impact on the public’s money supply. The Federal Reserve can have a marked influence on short-term interest rates and may also have some indirect influence on other terms of credit. But it cannot force businesses or consumers to borrow from their banks and thus to expand the volume of bank loans. The Federal Reserve cannot force people to hold money in the form of demand deposits when they prefer to hold their transactions or precautionary balances in income-earning assets. Nor can the Federal Re serve force people to use their available cash balances more quickly or more liberally. These limitations are inescapable and they need to be understood. Of late, the growth of monetary aggregates has reflected the cautious attitude of banks, businesses, and consumers. Despite a series of expansive monetary actions by the Federal Re serve, the narrowly defined money stock (Ml)— that is, currency plus demand deposits— grew at an annual rate of only Al/i per cent in the final quarter of 1974. In January of this year, moreover, business demand for bank loans was unusually weak, and a decline occurred in M 1. Broader measures of money, on the other hand, have shown greater strength. With market interest rates declining, net inflows of con sumer-type time and savings deposits at banks and at nonbank thrift institutions have improved markedly. Growth of M2— which also includes consumer-type time and savings deposits at commercial banks— was at an annual rate of 7 per cent in the fourth quarter, compared with a 4Vi per cent rate in the third. A still broader measure of money that includes currency plus all deposits at all financial institutions— that is, commercial banks, savings banks, savings and loan associations, and credit unions— showed rates of growth of 5% and 8V4 per cent in the third and fourth quarters of 1974, respectively. Nonetheless, the growth rates of monetary aggregates have of late fallen short of what the Federal Reserve desired. In recent months, therefore, the Federal Open Market Committee has taken progressively stronger steps to en courage a faster pace of monetary and credit expansion. For example, at its meeting on Oc tober 15, the directive issued by the Committee to the Manager of the Open Market Account called for “ resumption of moderate growth” of the monetary aggregates. Again, on January 21 of this year, the Manager was directed to achieve reserve and money market conditions consistent with “ more rapid growth in monetary aggregates than has occurred in recent months. ” The Committee’s actions have resulted in a progressively more ample provision of bank reserves, as is evidenced by the sharp decline since late summer in the interest rate that banks pay when they borrow reserves from one an other. Since the December meeting of the Open Market Committee, the Federal funds rate has dropped another 2 Vi percentage points. There are few precedents for so large a decline in a period of just 10 weeks. Forces have now been set in motion that will, I believe, soon result in a quicker pace of monetary and credit expansion. Actually, that process may already be under way. Early this month, the narrowly defined money stock— which had declined in January, as I noted ear lier— began to increase once again, and the rising trend has continued in the latest week. As my review of recent monetary policy actions indicates, the Federal Reserve intends to encourage the expansion in supplies of money and credit needed to mitigate recessionary forces and to encourage early recovery in economic activity. However, we have not thrown caution to the winds, and I firmly assure you that we shall not do so. True, inflationary pressures of late have shown welcome signs of moderating. But the menace of inflation is by no means behind us. Let us not lose sight of the fact that the general price level rose at an annual rate of 14 per cent in the fourth quarter of last year. Let us not lose sight, also, of the fact that the Treasury’s demands for credit to finance the deficit are enormous, that private credit demands in the bond market are even now extraordinarily Statements to Congress large, and that over-all private credit demands will expand when economic activity recovers. Unless we move carefully and prudently, we might well find that rising credit demands are producing an explosion of money and credit that could wreck all chances of lasting recovery. We must not let this happen. Let me turn now, therefore, to the resolution before this committee today. The Board has no quarrel with its broad objectives, nor would the spirit of the resolution conflict with the current aims of monetary policy. As I have already noted, the thrust of monetary policy over recent months has been consistently directed toward faster growth of the monetary and credit aggre gates in order to enhance prospects for recovery. At the same time, we have avoided excesses that could endanger our chances for lasting prosperity with a reasonably stable dollar. Since these are precisely the policies that the Board intends to continue to pursue, it is not clear why Resolution 18 is needed. I would remind you, also, that the Federal Reserve System, as an instrumentality of Gov ernment, is required to pursue the goals ex pressed in the Employment Act of 1946, which specifies “ maximum employment, production and purchasing power” as objectives of national economic policy. To be sure, the language of the Employment Act is less clear than it should be on the need for a stable price level. But, as a practical matter, the Employment Act has long been interpreted by the Federal Reserve and other governmental agencies to mean that reasonable price stability must be a high objec tive of public policy. Resolution 18, therefore, adds nothing new to the objectives of Federal Reserve policy as already defined by statute. Adoption of the resolution could, however, have damaging operational consequences. In the first place, the two parts of the resolution may collide with one another. In explaining the res olution to his colleagues in the Senate, Senator Proxmire observed that the second part of the resolution “ will help the Fed resist any future political pressure either from the White House or the Congress to overaccelerate to achieve short-run gains at the cost later on of still another round of inflation, high interest rates, 153 recession.” This is a very perceptive comment, and I hope that the committee will ponder this comment when it looks closely at the first part of the resolution, which could be interpreted to mean that the Federal Reserve is being urged by the Congress to take much stronger monetary measures than it has already taken. The Board regards Resolution 18 as danger ous for still another reason— the fact that the Resolution directs the Federal Reserve to pay attention to one financial factor only, namely, the money supply. As this committee knows, the Federal Reserve System has given very close attention in recent years to the behavior of monetary aggregates. We are well aware that an expanding economy needs an expanding supply of money and credit and that any pro tracted shrinkage of the money stock could lead to or exacerbate a shrinkage of economic activ ity. We are also well aware that excessive growth of money will lay the base for a new wave of inflation. But if the Federal Reserve’s policies were to be focused solely on the money supply— as the resolution seems to direct— our financial system would be placed in jeopardy. The risk would become especially great if the “ money supply” were interpreted to mean merely currency plus demand deposits— which is the meaning that emerges from Senator Prox mire’s explanatory statement to the Senate. Let us not lose sight of the fact that the public’s demands for currency, for demand de posits, for savings deposits, and for a host of other liquid assets are constantly changing. Fi nancial technology in our country has developed very rapidly in the past 20 years. As a rule consumers and businesses no longer hold all, or even most, of their spendable funds as cur rency or demand deposits. More and more cor porate treasurers have learned how to get along with a minimum of demand deposits; a large part of their transactions and precautionary bal ances are nowadays placed in interest-bearing assets—negotiable certificates of deposit, Treasury bills, commercial paper, short-term municipal securities, and other forms. Con sumers, too, have learned to keep excess funds in savings deposits at commercial banks, shares in savings and loan associations, certificates of 154 Federal Reserve Bulletin □ March 1975 deposit, Treasury bills, and other liquid instru ments, and they shift their liquid resources among these assets. The result is that no single concept of money any longer measures ade quately the spendable funds that are held by the public. For example, the narrowly defined money stock rose by 4Vi per cent during 1974. But this concept of the money supply has lost much of its earlier significance. If the definition of money is broadened to include consumer-type time and savings deposits at banks and thrift institutions, the total increased last year by 6% per cent. If large-denomination negotiable CD’s are also added, the total rose by almost 9 per cent— or nearly twice the growth rate of the narrowly defined money supply. In view of such variations, the Federal Re serve must conduct monetary policy with an eye on a family of monetary aggregates, the behav ior of whose members varies remarkably. But we must also give careful attention to the level of interest rates on mortgages and other loans, the liquidity position of financial institutions and the general public, and to other economic and financial factors. This is necessary because the willingness to use money, no matter how that elusive term is defined, depends heavily on the cost and availability of borrowed funds, and the state of confidence among businessmen, inves tors, and consumers. Also, as the Nation’s cen tral bank, the Federal Reserve can never lose sight of its role as a lender of last resort, so that financial crises and panics will be averted. The conduct of monetary policy must also take account of the position of the dollar in international markets. When developments in exchange markets result in large declines in the value of the dollar, as they have since last September, prices of imported products are forced up and inflationary pressures are intensi fied. Furthermore, undue fluctuations in ex change rates affect adversely the willingness and ability of traders to function in international markets. Worse still, since the dollar is still the basic yardstick in international transactions, a protracted erosion in the international value of the dollar could weaken world trade, and it would certainly undermine the prestige of the United States in world affairs. In discharging our responsibilities with respect to the interna tional value of the dollar, we at the Federal Reserve may at times, therefore, need to deviate temporarily from our longer-run objectives with regard to the monetary aggregates. In short, economic and financial conditions keep changing, public preferences for liquid assets keep changing, and so what constitutes an appropriate response of monetary policy must also change. If we focused solely on the money supply or guided our operations entirely by the monetary aggregates, the Federal Reserve would fail to fulfill its responsibilities for help ing to achieve the economic goals of our Nation. Finally, the Board objects to the last para graph of Resolution 18, which calls for semian nual reports to the Congress by the Federal Reserve of its plans for future monetary policy. Such a requirement could limit the flexibility of monetary policy in responding to unexpected developments, and it could undermine the ca pacity of the Federal Reserve to exercise its best judgment in adapting policies to changing cir cumstances. Such a requirement would also provide opportunities for sophisticated market participants to gain at the expense of others by using the information they would receive on the anticipated course of monetary policy. I do not mean to convey by these comments that the Board is opposed to consultations with the Banking Committees. On the contrary, we welcome the opportunity to report to the Congress— and as frequently as the Congress may desire— on monetary and financial devel opments and on the policies that we are pursu ing. We would indeed welcome the advice and counsel of this committee and of other congres sional committees with responsibilities in the field of economic stabilization policy. But a more detailed involvement of the Congress in the implementation of monetary policy is, I believe, unwise. In conclusion, Resolution 18 raises in the Board’s judgment momentous issues with re spect to the role of the Federal Reserve in the economic life of our Nation, whether the Fed eral Reserve’s traditional insulation from politi cal pressures will continue, whether resistance to inflation may not further diminish, and Statements to Congress 155 whether the dollar will remain a respected cur rency around the world. If the Congress should seek through Resolu tion 18 to become deeply involved in the im plementation of monetary policy, it would enter an intricate, highly sensitive, and rapidly changing field— with consequences that could prove very damaging to our Nation’s economy. We therefore hope that this committee will consider very carefully the consequences for our national welfare that could result from adoption of this resolution. □ Statem ent by A rthur F. Burns, Chairman, B oard of G overnors of the Federal R eserve System, before the Subcommittee on Commerce, Consumer and M onetary Affairs of the Com mittee on Government Operations, U.S. House of Representatives, M arch 6, 1975. of the committee were reported on a voluntary basis, as is the bulk of the statistical reports that we obtain. We have been highly successful over the years in obtaining the information we need to carry out the various responsibilities assigned to us by the Congress. Our success has been based on our ability to assure reporting banks that the data provided voluntarily by each of them will be treated in a confidential manner. Consequently, member banks participating in the interest rate survey were assured that the figures each supplied would be held confiden tial. Because of the proven usefulness of the fig ures, the Committee on Interest and Dividends recommended in its final report, issued in June 1974, that the Board of Governors continue to gather the interest rate information. Similar re quests were received from other Government agencies. The data in question meet the needs of the Department of Commerce in estimating the interest paid by consumers, and of the Department of Agriculture in estimating interest payments on farm debt. The Small Business Administration has also found the information on interest rates useful in administering its pro grams. The Board has been advised by its attorneys that it is doubtful whether the Board has au thority under existing law to require regular reporting by member banks of the type of infor mation on interest rates that I have been dis cussing. The availability of these data in the future thus depends on the willingness of banks to continue their reporting voluntarily. This week the Board has asked the member banks that participate in the survey whether they re gard all or part of this information on interest I am pleased to meet with this subcommittee today to report on the apparent theft of certain confidential data from the files of the Board of Governors, and on my decision to request an appropriate inquiry by the Federal Bureau of Investigation. The data in question relate to interest rates charged by commercial banks on various types of consumer, agricultural, and small business loans. They are collected by the Federal Reserve System for a sample of nearly 300 banks and by the Federal Deposit Insurance Corporation for another 70 banks. Each month the Board releases the interest rate information in the form of averages for the banks covered in the sample [Federal Reserve statistical release G.10]. Before proceeding further, let me explain the origin of these statistical data. We began col lecting this information on a regular monthly basis in January 1972 at the request of the Committee on Interest and Dividends, which was established by Executive Order in October 1971 as part of the President’s program to implement the Economic Stabilization Act of 1970. The committee had the responsibility of guiding a program of voluntary restraints on interest rates and dividends. To carry out its responsibilities, the commit tee initiated the collection of a variety of statis tics, including the survey on bank lending rates. Data collected by the Federal Reserve on behalf 156 Federal Reserve Bulletin □ March 1975 rates as confidential and whether they would be adversely affected if the data for individual banks were to be made public. Several banks had notified us previously that they will drop out of the survey if assurance of confidential treatment cannot be given. How many banks will take this attitude, we do not know at present. It is entirely clear, however, that if refusal by banks to participate in the survey were at all widespread, this would not only jeopardize the information on consumer loan rates that is now available to the public but it would also jeopardize the numerous other voluntary surveys conducted by the Federal Reserve— surveys that yield vital data on bank credit, business loans, bank lending practices, consumer credit, and so on. Let me now turn to the apparent theft— a matter that has excited this committee’s interest. On February 14 I was informed that Consumer R eports , a magazine published by Consumers Union, had in its possession interest rate data that had been reported to us by individual banks for November 1974, that the magazine planned to publish these data in its March issue, that the data had been improperly obtained, and that a Federal law protecting confidential statistical data may have been violated. Clearly, if a theft was committed by one or more of the Federal Reserve’s employees, it was essential to the integrity of our future operations to establish the facts in the case and to take any corrective action that might be warranted. The circumstance that the apparent theft involved interest rate data had no relevance whatsoever to our handling of this case. What was important to me was the appar ent theft of Government property. We could neither ignore nor condone this. As I reviewed the problem, it became clear that three options were available to us. We could initiate an internal inquiry; we could retain a qualified outside firm to undertake an investiga tion; or we could request a law enforcement agency to look into the matter. Since our inter nal resources were unequal to the task, and since I had doubts about the propriety of calling in private investigators, I decided that it would be best to request the Government’s investigative body, namely, the Federal Bureau of Investiga tion, to conduct the inquiry. FBI officials were immediately contacted by telephone and their assistance requested. The investigation began on February 19. The FBI has complete charge of the inquiry and I am unaware of what progress, if any, has been made up to this point. I hope that I have made it clear that the issue involved in this case goes beyond the unauth orized disclosure of individual bank data on consumer loan rates. In fact, it goes to the very heart of our data collection system, which is so necessary in carrying out our responsibilities. The Nation’s central bank cannot have a dis honest employee; it must take every appropriate step to protect the integrity of its operations. I understand that this subcommittee’s interest in this case derives from its concern about consumer affairs. As I have already explained, the fact that data on consumer loan rates are involved in the case has no relationship whatso ever to my request for an FBI inquiry. My sole concern was, and remains, the apparent theft of Government property and the continued abil ity of the Federal Reserve System to collect statistical information that is essential in its work. In conclusion, let me say a word about the Federal Reserve’s interest in consumer prob lems. While the Federal Reserve was not estab lished as a consumer protection agency, it has become more and more involved in this field over the years. Since 1934 the Federal Reserve has had responsibility for setting margin re quirements on securities credit—that is, for regulating credit that is used to purchase or carry securities. In 1968 the Truth in Lending Act directed the Board to prescribe regulations for the protection of consumers in their credit transactions. Last year, in anticipation of addi tional consumer responsibilities, the Board es tablished an Office of Saver and Consumer Af fairs. This new division, reporting directly to the Board, coordinates the System’s respon sibilities that are related to savers and to con sumers. Governor Bucher, who has been assigned special oversight responsibility in this area, will explain more fully the activities of this Office under both long-standing and recently enacted legislation. □ Statements to Congress Statem ent by Jeffrey M . B ucher, M em ber , B oard of Governors of the Federal R eserve System , before the Subcommittee on Com m erce , Consumer and M onetary Affairs of the Com mittee on Government O perations, U.S. House of Representatives, M arch 6, 1975. On behalf of the Board of Governors, I welcome the opportunity to appear before this subcom mittee to outline the scope of the Board’s con sumer protection program, with particular ref erence to the collection and dissemination of statistical data. In 1974, as I shall describe shortly, the Board established the Office of Saver and Consumer Affairs in order to provide a focus within the Board’s structure for the conduct of our respon sibilities affecting consumers. However, we be lieve it is important to underscore the fact that throughout its history, and certainly within the period of time encompassed by the service of present members of the Board, the interests of consumers have been very much taken into account over the whole range of decisions we have made— with regard to such vital areas as monetary policy, bank and bank holding com pany supervision and regulation, securities reg ulation, and electronic funds transfers. Eco nomic policies, particularly those relating to the role of monetary policy in economic stabiliza tion, are of the utmost importance to all con sumers, and the Board is always mindful of its responsibility to be responsive to their concerns. In this regard, the Board continually strives to follow policies that will promote stable prices, high employment, and production. The Board’s regulation of member banks contributes to the welfare of consumers by helping to assure the safety and soundness of banks. To help us in these tasks, we have assembled the best staff we could find, and have given them the job of informing the Board how best to meet the needs of the public at large. To give you an example of how this process works, let me mention briefly what the Board of Governors has done to strengthen competition in the area of con sumer credit— over and apart from the Truth in Lending function, which deserves separate treatment. C O M P E T IT IO N C O N SU M E R 157 IN F IN A N C E The Board for some time has held the view, which was later enunciated in the report of the National Commission on Consumer Finance, that we should rely basically on vigorous com petition to provide optimal performance in terms of the price and the availability of consumer credit. For many years the Board has been responsible for administering the Bank Merger Act among State member banks and thus fos tering competition among these important con sumer lenders. More recently under authority granted by Section 4(c)(8) of the Bank Holding Company Act the Board has authorized bank holding companies to establish subsidiary fi nance companies; as part of this authorization, procedures have been established to encourage de novo entry in this field. These actions, which are essentially procompetitive, are permitted after a careful review by the Federal Reserve. Moreover, although the Board’s procedures en courage de novo entry, we believe the acquisi tion of an existing company in specific instances may also be procompetitive. We have denied applications to acquire existing companies that compete significantly with the applicant in geo graphical areas they already serve. This has encouraged applicants to approach the Board with proposals involving companies that serve markets geographically separated from those served by the applicant. Substantial competition can result from such a process. At all times the Board keeps in mind the criterion that the public benefits must outweigh any adverse effects, and in the consumer credit field this policy should over time result in better service for consumer credit borrowers. S E C U R IT IE S C R E D IT R E G U L A T IO N In 1934 the Federal Reserve was given the responsibility by the Congress for setting margin requirements on credit to purchase or carry securities. The principal of this legislation was to prevent the excessive use of credit to purchase or carry securities. While the securities credit regulations we 158 Federal Reserve Bulletin □ March 1975 have issued under this authority provide indirect protection for the saver and investor by helping to avoid destabilization of securities markets, the regulations also provide a more direct pro tection. The legislative history of the statutory provision (Section 7 of the Securities Exchange Act of 1934 (15 U.S.C. 78g)) shows that the Congress was also concerned about an important ancillary effect of the regulation. By limiting the extent to which an individual could be induced to buy securities on thin margin, the legislation reduced the chances of his being overcommitted and of being sold out if the market should decline. T R U T H IN L E N D IN G With this record of activity as a background, it is perhaps not surprising that in recent years the Congress has added to the Board’s respon sibilities by placing upon us specific duties in the field of consumer protection. The first ex ample of this legislation, of course, was the Truth in Lending Act, which was passed in 1968. This legislation, as you know, was based on the premise that uniform disclosure of credit costs would enable the consumer to compare more readily various credit terms and thus help to educate consumers in the use of credit. Amendments to the Act in 1970 prohibited the unsolicited distribution of credit cards and lim ited the liability for unauthorized use of lost or stolen cards to $50. The coverage of Truth in Lending is farreaching because great numbers of individuals use consumer credit in one form or another. Many retail stores offer charge accounts with extended repayment privileges and subject to special financing charges; credit cards may be used for department and other store purchases, travel, or entertainment; cars and furniture may be bought on an instalment purchase plan; most homes are purchased with a mortgage; and medical bills, vacations, and even tax payments are often financed through personal loans repayable in monthly instalments. Although the precise number of creditors subject to Truth in Lending is not known, we believe about 1 million is a reasonable estimate. Because of the Act’s extremely broad impact on both creditors and consumers, the Board instituted an extensive program of public edu cation relating to Truth in Lending in conjunc tion with developing the necessary regulations. Early in the life of Truth in Lending, members of the staff participated in a great number of meetings and seminars sponsored by creditor and consumer groups and by regulatory agencies for the purposes of explaining the Truth in Lending provisions. While no actual count of the number of such contacts has been main tained, such training sessions constituted a sub stantial amount of the staff’s work during the earlier periods. One of the major educational thrusts was to put into the hands of creditors and consumers a pamphlet containing the Truth in Lending Act and Regulation Z. This pamphlet also contained questions and answers about the regulation and sample disclosure forms. To date, nearly 2 million copies of the Regulation Z pamphlet have been distributed. In addition, copies of amendments and interpretations of Regulation Z have been available on request, and the Reg ulation Z pamphlet has been republished from time to time to include new amendments and interpretations. Any interested person can be placed on the mailing list. The Board has also developed a leaflet for consumers explaining in easy-to-understand language the primary provisions of the Act. Thus far, almost 3 .5 million copies of this free leaflet have been distributed to the public. A Spanish language version of the leaflet has also been published, and more than a half million copies have been distributed. In addition, the Board’s staff has developed film strips for con sumer and creditor education. Copies of a film strip may be borrowed free of charge or pur chased for $10 each. Questions from the public continue to occupy a substantial amount of staff time. In addition, the 12 Federal Reserve Banks have also been involved in the educational ef forts. Clearly, Truth in Lending is not going to effect an overnight change in the consumer’s attitude toward the cost of credit and the need to shop for credit. We feel that substantial further improvement in this area cannot be ex pected until such matters are taught in the Statements to Congress schools. In this vein, the Board is further de veloping educational materials for use in secon dary and adult education classrooms. We are hopeful of having these ready for formal classroom use during the 1975-76 school year. In addition, we are currently working on four additional consumer leaflets, which would be distributed by the Board and in conjunction with the General Services Administration’s consumer information program. These leaflets will deal with such problems as credit cards, savings accounts, car loans, and the benefits of prepay ing a loan. O F F IC E A N D O F SA V E R C O N SU M E R A F F A IR S The Board’s Office of Saver and Consumer Affairs was formed as a new division on August 5, 1974, in anticipation of the responsibilities that the Congress was expected to give the Board under the Equal Credit Opportunity Act, the Fair Credit Billing Act, and the Federal Trade Commission Improvements Act. The new division assumed existing staff functions under the Truth in Lending Act and the Securities Exchange Act of 1934. My former duties as the member of the Board with primary respon sibility for Truth in Lending were expanded to include all the activities of the Office of Saver and Consumer Affairs. The first priority was to recruit a staff to draft regulations under the new legislation. Our re cruitment effort is now virtually complete, and I am glad to say that we have been able to assemble a group of effective and dedicated people with excellent backgrounds in both the consumer credit and the antidiscrimination areas. Even before the new division was formally established, the staff had begun preliminary work at the Board’s direction on regulations covering Equal Credit Opportunity and im proved real estate settlement procedures. In an ticipation of legislation being passed by the Congress, work began shortly after August 5 on regulations to implement the Fair Credit Billing Act and on regulations as to unfair or deceptive acts or practices by commercial banks, which would parallel regulations ex 159 pected to be adopted by the Federal Trade Commission. In December the Board assigned the new division the task of carrying out the Board’s responsibilities under Title VIII of the Civil Rights Act of 1968. Title VIII forbids discrim ination in the extension of housing credit and is enforced by the Board as to State member banks. The Division’s first project was to process the information collected for the Board under a pilot survey program. The program, undertaken last spring, is a joint effort by the four Federal supervisors of financial institutions to develop a means of ascertaining the extent of discrimination in residential housing credit. The public law mandating the Equal Credit Opportunity and Fair Credit Billing regulations becomes effective on October 28, 1975. It is essential that the public be informed of the new requirements well in advance of that date so that creditors can adjust their operations accordingly and consumers can be informed of their new rights. Inasmuch as a minimum of 90 days should be allowed between final adoption of the regulation and October 28, 1975, for consumer education and adjustments by lenders, only about 8 or 9 months were available for drafting the regulations, obtaining public comment, and revising the regulations prior to their adoption by the Board. A special task force was created in the Division and draft regulations are already nearing completion. Because of this priority, the staff has of necessity concentrated on meeting with con sumer and creditor groups in order to inform itself as to the problems to be covered and on the actual work of drafting the regulations. Also, the very heavy continuing responsibility for interpreting and explaining the truth in lend ing and the securities credit regulations could not be neglected. Nevertheless, the staff has had a primary focus from the beginning on the question as to how consumers can best be equipped with the tools they will need to shop intelligently for credit and to resist credit dis crimination that is based on factors other than individual creditworthiness. Two obvious tools are consumer education and consumer information as to the cost of credit. I have already described the educational 160 Federal Reserve Bulletin □ March 1975 efforts that the Board has undertaken to make consumers aware of Truth in Lending, and sim ilar efforts are in a preliminary planning stage as to the regulations implementing the Equal Credit Opportunity and the Fair Credit Billing Acts. In July 1974, the Board submitted to the Senate Committee on Banking, Housing and Urban Affairs at the request of Senator Spark man, the then-Chairman of that committee, an extensive report concluding that it would be preferable to enact legislation requiring disclo sure to consumers of sufficient information to permit comparison of the relative merits of the various savings account plans offered rather than to select and impose a uniform method of inter est calculation for savings accounts. In this area, as well as in the area of credit costs, our consumer protection staff has recently begun to evaluate the extent to which information in addition to that already required under the Truth in Lending Act and Regulation Z or under a Truth in Savings Act might be useful to enable the consumer to shop more effectively for credit or for a return on his savings. The staff will be considering, among other things, the kinds of information that would facilitate the consumer’s comparison of credit costs or returns on savings among lenders or savings institutions in a given market area, the feasibility of accumulating and insuring the ac curacy of such information, and the extent to which the Board’s existing statutory authority would allow it to impose such requirements. S T A T IS T IC A L IN F O R M A T IO N In order for the Board to carry out its many functions with the best possible regard for the public interest, it has become necessary over the years to develop a very extensive system of data collection. For example, some of the data collected reg ularly from specially selected samples of banks include a weekly balance sheet report from large commercial banks, commercial and industrial loans by industry, a maturity distribution of large certificates of deposit, nondeposit sources of funds, ownership of demand deposits, Fed eral funds transactions, the volume of consumer loans to individuals for household, family, or other personal expenditures, auto instalment loans by dealers, bankers acceptances, time and savings deposit rates, debits to demand deposits, interest rates on loans to business, changes in bank lending practices, and foreign branch assets and liabilities. All of these data are used for the compilation of the many tables published each month in the Federal Reserve B u l l e t i n . These data are of critical importance to the Federal Reserve System in carrying out its stat utory responsibilities for the formulation and implementation of monetary policy, and they are also important to an extensive array of outside users, including other Government agencies, banks and other businesses, research organizations, and individual academicians and other scholars. I might add that, as far as I know, the data we release exceed that published by any other central bank in the world. Additional data are collected for regulatory and supervisory purposes, and the Federal Re serve Banks collect information and data from banks in their districts often for research use, such as for studies of regional economic and financial trends. Data also are collected for published statisti cal releases from nonbank sources— such as information from finance companies on the vol ume of various types of loans outstanding and new loans made, and information from electric utilities and industrial plants on electric power for use in the industrial production index calcu lations. This data collection program is based in large measure on the voluntary provision of informa tion, not only by member banks but also in many cases by nonmember banks and other financial and nonfinancial businesses. Insofar as possible, the Board has attempted to rely on voluntary reports rather than on statutory au thorization because we believe the comprehen siveness and accuracy of the data received in this manner are superior to what can be obtained by bureaucratic mandate. A key element in eliciting this cooperation is the confidential treatment accorded the indi vidual bank or firm data submitted to the Board. This is particularly true in the case of data collected on the basis of sampling procedures, Statements to Congress 161 which the System uses extensively in order to minimize the processing costs and the burden on the respondent. In the case of sampling, individual respondents are at best reluctant to participate in data collection surveys when they know that some of their competitors are not being covered, and it seems clear that many would refuse to participate if they felt that there was risk of disclosure of the data they reported because disclosure could reveal and compromise the competitive position of the reporting institu tion. Accordingly, the policy of the Board has been to treat unpublished statistical information submitted in confidence as exempt from public disclosure and also to treat as confidential the identities of the individual banks and other in stitutions that participate in sample surveys. Viewed from the standpoint of over-all public benefit, there is no doubt that the Board’s present data collection program pays substantial dividends. The reliability and scope of the data assist not only the Board but many government agencies, businesses, and scholars. We believe it is extremely important that, in searching for new ways in which these data may be utilized to serve the public, we do not lose sight of the great value that already accrues to all Americans from the present statistical information program. In any event, the Board intends, as it designs and conducts its statistical operations, to look for opportunities to make relevant data available in a form that would be appropriate to the consuming public. The Board’s consumer-related programs, as I have outlined here today, are and will remain a high priority. In addition, I want to emphasize that, although my discussion has focused on our Office of Saver and Consumer Affairs and our responsibilities with regard to consumer credit, our vision is not so narrowly limited and it looks beyond to the welfare of consumers generally. Policies adopted by the Board benefit the con sumer by striving for stable prices, a sound financial system, and a high level of employ ment and production. Thank you, Mr. Chairman; I shall be glad to answer any questions that you or the other members of the subcommittee may have. □ Statement by Arthur F. Burns, Chairman, B oard of Governors of the Federal Reserve System, before the Committee on the Budget, U.S. Senate, M arch 13, 1975. deal with these problems in the months ahead may well determine whether our country will return to a stable prosperity or continue to drift in ways that are gradually sapping the strength of our economic system. In my testimony today, I shall discuss, first, our immediate economic problems; next, some disturbing longer-term trends that require atten tion; and finally, the fiscal issues that have become the awesome responsibility of this committee under the Congressional Budget Act of 1974. The economy is now in the midst of a severe decline in business activity. Over the past sev eral months employment and production have decreased as rapidly as at any time during the postwar period. Unemployment has risen sharply, and the length of the workweek has also been substantially reduced. As so often happens in the course of a reces sion, consumer demand for new homes, autos, I am glad to meet with this committee today to discuss with you the difficult fiscal and eco nomic problems confronting this Nation. The fiscal decisions that this committee and the Congress must face are of profound impor tance to our Nation’s future. A prompt tax reduction is needed to cushion the recession now afflicting our economy. But we must keep in mind that the Federal deficit in prospect for this and the forthcoming fiscal year is already huge. A substantial further increase could put exces sive strains on money and capital markets, push up the rate of inflation later on, and reinforce other long-run trends that have been adversely affecting the performance of the American economy. The ways in which we as a people 162 Federal Reserve Bulletin □ March 1975 household furnishings, and other durable goods— items whose purchase can be most eas ily postponed— declined markedly last year. Moreover, weakness became evident also in markets for clothing and other nondurable con sumer goods. To avoid a build-up of unsold inventories, business firms began last fall to cut back sharply on their production schedules and on their orders for materials and supplies. For a time sales fell so rapidly, however, that a substantial involuntary accumulation of inven tories occurred. Business firms are now working strenuously to eliminate excess stocks—through further curtailments of output, special promotions, and price concessions. These efforts are meeting with some success. Unit sales of new cars have clearly been bolstered by the price concessions offered by auto manufacturers. Moreover, total retail sales, expressed in constant dollars, have held up well thus far this year. There is also some evidence that the physical volume of total business inventories is now declining. Any such decline is bound to have a temporary depressing effect on production and employment, but it is an essential precondition for an upturn in busi ness activity. A solid recovery, however, will require a turnaround in housing and in spending for new plant and equipment by our Nation’s business firms. New mortgage loan commitments of thrift institutions have risen appreciably in recent months, the inflow of funds to these institutions is continuing at a rapid rate, and new housing starts also increased somewhat in January. A pick-up in homebuilding may therefore be under way soon. But some businesses are still post poning or canceling plans for constructing new facilities or for installing new machinery and equipment. Larger business expenditures for fixed capital are now needed to add to the number of jobs and to expand personal incomes, thereby strengthening consumer purchasing power. Larger investment expenditures are also needed to provide, later on, the modernized industrial plants and the additional productive capacity that are essential to combating infla tionary pressures and raising our living stand ards. Monetary policy has responded to the weak ening in economic activity by promoting easier financial conditions. Federal Reserve open mar ket operations began to be more accommodative last summer. As the year progressed, they were increasingly directed towards a more ample provision of reserves on the banking system. More recently open market policy has been reinforced by other monetary instruments. The discount rate was reduced on four occasions, and three reductions were made in member bank reserve requirements. These policy actions, together with weaker demands for credit by businesses and con sumers, have resulted in a sharp decline of short-term market interest rates. For example, the Federal funds rate— that is, the interest rate banks pay when borrowing reserves from one another—has declined from a peak of 13V2 per cent registered in July of last year to less than 6 per cent now. The interest rate on short-term commercial paper has declined from over 12 per cent last July to around 6 per cent. The prime loan rate charged by banks has declined by about 4 percentage points. As a result of these reductions, short-term interest rates in the United States have recently been lower than in any other major industrial country. Long-term interest rates have also declined, although much less than short-term rates. Lenders are still demanding a sizable inflation premium to supply long-term funds, and they are doing so in other countries as well as in the United States. Actually, long-term interest rates in our country are lower than in any major industrial nation except Switzerland. The beneficial effects of easier conditions in financial markets have not been confined to the behavior of interest rates. Commercial banks have repaid their borrowings from the Federal Reserve and have taken other steps to improve their liquidity. Liquidity positions of nonbank thrift institutions have also improved, and mortgage credit has become more readily avail able. A large volume of long-term securities has been successfully marketed by business cor porations and municipal governments; tensions and uncertainties surrounding financial markets earlier last year have diminished; and stock prices of late have been rising briskly. Thus, the course of monetary policy since last summer has fostered conditions in financial markets that are helping to mitigate recessionary Statements to Congress forces and to encourage early recovery in eco nomic activity. However, in view of the contin uing seriousness of the problem of inflation, the Federal Reserve’s actions to expand the supply of money and credit have been disciplined by prudence. True, inflationary pressures of late have shown welcome signs of moderating; for example, the over all index of wholesale prices has declined in each of the past 3 months. But wage increases are continuing to exceed pro ductivity changes by a wide margin, and the consumer price level is still rising at an annual rate of about 8 per cent. The menace of inflation is by no means behind us. Let us not lose sight of the fact that the severe recession in which we find ourselves is largely a consequence of neglect in dealing with our persisting inflation. This is one of several longer-range problems to which I want to direct this committee’s atten tion. Inflation has been a concern of this country, as well as others, throughout most of the period since World War II. However, the upward march of prices began to accelerate in the mid dle 1960’s, and it became dangerously rapid in 1973 and 1974. As is characteristic of an infla tionary boom, speculative activities flourished, particularly in real estate markets, while indus trial efficiency languished. During 1973 and much of 1974, purchasing agents found them selves scrambling for materials, component parts, and equipment; order books of business firms became overfull; delays in deliveries be came longer and more frequent; costs and prices soared; demands for credit increased rapidly and outran available supplies. As a result of these developments, our Na tion’s productive capacity suffered a setback. Consumer purchasing power was eroded; the real value of the wages, savings deposits, pen sions, and life insurance policies of the Ameri can public diminished. Corporate profits de clined— a fact that received little notice because of accounting techniques that had been designed for inflation-free times. Financial markets un derwent exceptional stresses and strains, and interest rates soared to record levels. In short, inflation led to this recession as it has done time and again in the past. We cannot realistically expect to regain last ing prosperity until businesses and consumers 163 see some end to the inflation that has been damaging our economy. Public policy, both now and in the future, must not lose sight of this hard-learned truth. A major factor responsible for the acceler ating inflation of the past 10 years is fiscal laxity. The current round of inflation began when the Federal Government embarked on a highly ex pansive fiscal policy in the middle 1960’s. Large tax reductions occurred in 1964 and the first half of 1965, and they were immediately fol lowed by a rapid increase of Federal spending. New and substantial tax reductions occurred again in 1969 and 1971, and they, too, were followed by massive increases of expenditures. Deficits have therefore mounted, and they have persisted through good years and bad. In the last five complete fiscal years— that is, from 1970 through 1974— the Federal debt held by the public, including obligations of the Federal credit agencies, rose from $304 billion to $412 billion, an increase of 35 per cent. The huge deficits of recent years added enormously to aggregate monetary demand for goods and ser vices, but they added little to our Nation’s capacity to produce. They have thus been di rectly responsible for a substantial part of the inflation problem. While reductions in tax rates contributed to chronic deficits, by far the largest source of the problem came from increases of Federal ex penditures. It may be useful to remind ourselves of what has recently happened to the rate of Federal spending. Total Federal expenditures did not reach the $100 billion level until fiscal 1962, or nearly 200 years after the founding of the republic. By fiscal 1971, only 9 years later, Federal spending rose another $100 billion and thus passed the $200 billion mark. This fiscal year, or only 4 years later, the $300 billion mark will be passed, and— at the rate we are going— the $400 billion level may be exceeded in another 2 years, that is, in fiscal 1977. If this trend of acceleration persists, we will soon be adding $100 billion or more to the total Federal spend ing every year. The huge and persistent increases in govern mental expenditures, besides being a major cause of intensifying inflationary pressures over the past decade, have also been responsible for 164 Federal Reserve Bulletin □ March 1975 a weakening of individual enterprise in this country. This is the second longer-run problem that our Nation must confront. Over the past quarter century, governmental programs have increased markedly the share of national output going to persons who are not productively employed. Transfer payments by all governmental units— in such forms as public welfare, social security benefits, unemployment insurance, and other public assistance— have risen about twice as fast as total wages and salaries, so that they now amount to about one-fifth of the aggregate of wage and salary disbursements. Twenty-five years ago, a typical worker with three dependents gave up only about 1 per cent of his gross weekly earnings in Federal income and social security taxes. Since then, that fraction has risen steadily, and it reached 13 per cent in 1974. Any large increase in the absorption of private incomes by Government is bound to raise ques tions about economic efficiency. In 1929 gov ernmental spending at all levels accounted for less than 11 per cent of the dollar value of our Nation’s total production. The corresponding figure rose to 20 per cent in 1940, 30 per cent in 1960, and 36 per cent in 1974. Higher taxes, in particular, pose a threat to individual incen tives— all the more so when taxes are levied on persons who work and produce, and the funds are then transferred to others who remain idle. We are, and I hope that we will always remain, a compassionate people, But if we continue to seek rapid growth of our national economy, as I believe we still do, we can ill afford to neglect the fundamental precept that there must be adequate rewards to stimulate individual effort. Nor can our Nation afford to neglect the deterioration in corporate profits that has taken place over the past decade or more. This is another longer-run problem of major impor tance. The ratio of profits of nonfinancial cor porations to the corporate gross product has been declining rather steadily for many years, and profits in the aggregate have been far too low in recent years to supply the financing needed for vigorous expansion of capital in vestment. Last year the pre-tax profits of all nonfinancial corporations from their domestic operations may appear to have been about 16 per cent higher than in 1973 and 45 per cent higher than in 1972. However, the dominant factor in this rise was an extraordinary increase in inventory profits— an element of earnings that is illusory. It stems from the fact that the accounting prac tices of many corporations still do not allow for the fact that inventories used up in production must be replaced at higher prices during a period of inflation. As a consequence, costs of opera tions have been understated, and fictitious prof its have been created that are being taxed by the Federal Government. Once this illusory inventory profit is elimi nated, we find that the after-tax domestic profits of nonfinancial corporations did not rise last year. On the contrary, they declined by 20 per cent and were smaller than 8 or 10 years ear lier— when the dollar value of the output of these corporations was about half what it is now. Moreover, when allowance is made for the fact that depreciation schedules for fixed capital are also based on historical costs— rather than re placement costs— and thus contribute yet an other illusory element to book profits, we find that the picture of corporate profits is still darker. The slump in corporate profits during the past decade is a major reason why business capital investment has been inadequate to maintain the long-term growth of productivity in this country. This is the fourth longer-range problem to which I want to call the committee’s atten tion. The trend of productivity improvement is tending to flatten out. During the past decade, the average annual increase of productivity in the private nonfarm economy was less than 2 per cent, compared with nearly 3 per cent in the previous 10 years. Within the past decade, the rate of improvement in productivity dimished also. This development has a significant and cumulative bearing on the living standards of our people, and also on the impact that rising wage rates have on costs of production and prices. There has been still another ominous conse quence of deteriorating business profits— namely, a decline in the financial strength of Statements to Congress many of our Nation’s business firms. This is the fifth longer-term trend that requires atten tion. Years ago our Nation’s large business cor porations financed much of their capital invest ment from internal sources— that is, from profits and depreciation reserves. For more than a dec ade, however, dependence on borrowed funds has been rising steadily. This growing reliance on borrowed money means that the debt owed by business firms has kept growing relative to their equity position. Moreover, a large part of the indebtedness has been in the form of short-term obligations, and these, in turn, have grown much more rapidly than holdings of current assets. As a conse quence, many large businesses no longer have the strength or resilience they once had in the face of economic and financial adversity. The sixth longer-range problem to which I wish to draw your attention is the foreign ex change value of the dollar. Actually the dollar began weakening many years before it was formally devalued in 1971. Before that, our balance of payments had been in deficit for a prolonged period, and the dollar holdings of foreign central banks kept rising steadily. The devaluation of 1971 and also that of 1973 were thus a consequence of trends that had been under way for many years. Since the second devaluation in 1973, the foreign exchange value of the dollar has fluc tuated fairly widely. For example, since last September, the average value of the dollar has fallen by about 7 per cent in relation to the currencies of ten major countries. Such fluctua tions make it more difficult for foreign traders and investors to make rational plans for the future. We must bear this in mind, and also the fact that any appreciable further decline in the external value of the dollar would add to our domestic inflation problem. Let me turn now to the implications for public policy of our immediate and longer-range eco nomic difficulties. The most urgent need at the present time is to cushion the recession. Action to reduce per sonal income taxes and to increase the invest ment tax credit is overdue. The House has already acted, and I hope that the Senate will 165 soon reach its decision— either along the lines recommended by the President or as embodied in the House bill. If the stimulus to the economy thus provided proves insufficient, additional stimulus could be provided 2 or 3 months later. The principle underlying the President’s fiscal program should, however, be kept clearly in mind. A temporary boost to aggregate demand is needed to alleviate recessionary forces, but we must try to accomplish this without adding to Federal deficits over the longer run. The Tax Reduction Act of 1975 passed by the House (H.R. 2166) is consistent with this principle because it provides for temporary tax reductions. However, a variety of increases in expenditures are meanwhile in the making, and sentiment is also developing for larger and per manent tax reductions. I have become deeply concerned, therefore, about the size of our prospective deficits, and the threat posed by these deficits for our money and capital markets and for our longer-run inflationary trend. Let us take stock of where we are and what may happen in the forthcoming fiscal year. In the current fiscal year total Federal outlays will probably exceed revenues by much more than the $35 billion estimated in the President’s bud get message. This enormous deficit is regretta ble, but it reflects largely the effects of the recession on Federal tax receipts and on ex penditures for unemployment insurance and re lated programs. In any event, there is no practi cal means of reducing significantly the deficit for fiscal 1975 at this late stage. For fiscal 1976 the unified budget deficit pro jected by the administration just a few weeks ago totaled $52 billion, but that figure is merely serving as the base on which increases are being built. The official administration estimate was raised some days ago to about $54 billion on account of the release of previously frozen highway and hospital construction funds and also because the Congress did not raise the price of food stamps. The President has just requested almost $2 billion additional funds for public service jobs and summer youth employment. But that is not the end of the matter. If H.R. 2166 is enacted, in lieu of the administration’s tax program, the deficit in fiscal 1976 will rise another $5 billion or $6 billion, thus bringing 166 Federal Reserve Bulletin □ March 1975 the total to more than $60 billion. Moreover, if the great bulk of the rescissions, deferrals, and other spending curbs specified in the adminis tration’s budget are rejected by the Congress, the deficit will reach about $75 billion. If offbudget outlays and those of Government-sponsored enterprises are also added, as I believe they should be, the figure mounts to more than $90 billion. And if the Congress provides funding for programs beyond present estimates or if revenues fall short of present projections, the Federal deficit to be financed in the upcoming fiscal year could exceed $100 billion. I cannot stress too strongly the dangers in herent in a deficit of anything like that magni tude. Much of the financing of the deficit will occur at a time when private credit demands will probably be strengthening. Enormous strains may therefore be placed on the money and capital markets. This means that interest rates may begin to shoot up, that many private borrowers may be crowded out of the market, that savings funds may once more be diverted from mortgage lenders, and that the stock mar ket may turn weak again. With deficits mounting, the Federal Reserve will probably be subjected to pressure from all sides to follow a highly expansive monetary policy. Every citizen should recognize, how ever, that unbridled monetary and credit expan sion in circumstances of this kind could have disastrous consequences. Short-term interest rates might be held down for a short time by permitting the supply of money and credit to increase apace with soaring credit demands. But long-term interest rates would soon be likely to move up rather briskly because lenders and borrowers alike would realize that a new and even more virulent round of inflation may soon follow. I must advise this committee that the only responsible course now available to the Federal Reserve is to pursue a moderate path of mone tary expansion. As I see things, the time re maining for getting control of our Nation’s long-run problems is growing short. Certainly the people of this country are weary of inflation; they are confused and disturbed by the huge budget deficits that are in the making this fiscal year and next; and they are anxiously awaiting evidence that their Government can and will take the necessary steps to restore a stable prosperity. I hope, therefore, that this committee will focus a good deal of its attention on the course of public policy needed to cope with the serious longer-run problems facing the Nation as well as on the actions needed now to encourage early recovery of business activity. Solving these longer-range problems will re quire a better measure of discipline in Federal finances. Actions taken to stimulate the econ omy now must not erode the tax base, and we must avoid setting off another spiraling rise of Federal expenditures. Ways must be found to curb the ever-increasing share of the national income absorbed by governmental programs. Ways must be found also to strengthen business profits and the state of business finances, and to increase the incentives for expansion of pro ductive capacity and for modernization of our Nation’s industrial plant. Above all, the Congress needs to keep firmly in mind that the task now facing our country is not only to hasten the process of economic recovery but also to lay the basis for a lasting prosperity. □ 167 Law Department S t a t u t e s , r e g u l a t i o n s , in t e r p r e t a t io n s , a n d d e c i s i o n s RULES R E G A R D IN G A V A IL A B IL IT Y O F IN F O R M A T IO N The Board o f G overnors has revised its R ules Regarding A vailability o f Inform ation to im p le ment 1974 A m endm ents to the Freedom of Infor m ation A ct. A M E N D M E N T S R E G A R D IN G O F TO R U L E S A V A IL A B IL IT Y IN F O R M A T IO N 1. E ffective February 19, 1975, section 2 6 1 .3 is am ended to read as fo llo w s: S e c t io n 261.3 — P u b l is h e d In f o r m a t io n (d) O th er p u b lish e d in fo r m a tio n . A s required by section 11(a) o f the Federal R eserve A ct (12 U .S .C . 2 4 8 (a )), the Board issu es w eek ly (1) a statem ent o f the condition o f the Federal R eserve Banks; (2) a statem ent listing certain applications received by or on behalf o f the Board and actions on such applications by the B oard, or on behalf o f the Board pursuant to authority d elegated under Part 265 of this chapter, as w ell as other matters issu ed , adopted, or prom ulgated by the Board; and (3) a statem ent sh ow in g changes in the banking structure resulting from m ergers and the estab lish m ent of branches. From tim e to tim e, the Board issues statem ents to the press regarding particular monetary and credit action s, regulatory actions, actions w ith respect to certain types o f applica tion s, and other matters. In addition, it issu es various publications, the more important o f w hich are listed in the m onthly Federal R eserve B u l l e t i n . A m ong such publications is a lo o se-lea f com pilation o f Interpretations of the B oard of (b) A n n u a l R e p o r ts. The B oard’s Annual Report to C ongress pursuant to section 10 o f the Federal R eserve A ct (12 U .S .C . 2 4 7 ), w hich is m ade public im m ediately after its subm ission to C ongress, contains a full account o f the B oard’s G overnors of the Federal System. operations during the year, an econ om ic review o f the year, and legisla tiv e recom m endations to C ongress. A s required by la w , the Annual Report (f) In d ex o f B o a rd a c tio n . There is available includes (1) a com plete record of the p olicy actions to the public upon request to the Secretary o f the taken by the Board and the Federal Open Market Board, at a charge not to ex ceed the direct co st C om m ittee, sh ow ing the votes taken thereon and of duplication, co p ies o f an index providing iden the reasons underlying such actions (12 U .S .C . tifying inform ation as to any matter issu ed , 247a); (2) material pertaining to the administration adopted or prom ulgated by the Board betw een July of the B oard’s functions under the Bank H olding 4 , 1967 and February 19, 1975. Furthermore, the C om pany A ct of 1956 (12 U .S .C . 1844); and (3) Board publishes and distributes to the pu b lic, at material pertaining to bank m ergers approved by a cost not to ex ceed the direct cost o f duplication, the Board under section 18(c) o f the Federal D e a w eek ly index providing identifying inform ation posit Insurance A ct (12 U .S .C . 1828(c)). as to any matter issu ed , adopted or prom ulgated Pursuant to section 114 o f the Truth in L ending by the Board after February 19, 1975. A ct (15 U .S .C . 1613) the Board reports annually 2. E ffective February 19, 1975, section 2 6 1 .4 to the C ongress concerning the administration of is am ended to read as fo llo w s: its functions under the A ct, and includes such S e c t i o n 261.4 — R e c o r d s A v a i l a b l e t o recom m endations as it deem s necessary or appro priate, and its assessm en t of the extent to w hich t h e P u b l ic U p o n R e q u e s t com pliance is being ach ieved . A n annual report is also subm itted pursuant to the Freedom of Inform ation A ct (5 U .S .C . 55 2 ) w ith regard to (d) O b ta in in g a c c e ss to r e c o r d s. R ecords of requests for inform ation under that A ct. the Board subject to this section are available for 168 Federal Reserve Bulletin □ March 1975 inspection and cop yin g during regular b usiness hours at the offices o f the Board of G overnors of the Federal R eserve S ystem , Federal R eserve B u ild in g, 20th Street and Constitution A ven u e, N .W ., W ashington, D .C . 2 0 5 5 1 , or, in the case of records containing inform ation required to be disclosed under section 12 of the Securities E x change A ct of 1934, as am ended (15 U .S .C . 7 8 ), at the offices of the Federal D ep osit Insurance Corporation or at any Federal R eserve Bank. Every request for access to records o f the Board, other than those containing inform ation required under section 12 o f the Securities E xchange A ct, shall be subm itted in writing to the Secretary of the Board, shall state the nam e and address o f the person requesting a ccess to such records, shall clearly indicate whether such request is an initial request or an appeal from a denial o f inform ation requested pursuant to the Freedom o f Inform ation A ct, and shall describe such records in a manner reasonably sufficient to permit their identification w ithout undue difficulty. The Secretary o f the Board (or, in his ab sen ce, an A ssistant Secretary designated by the Secretary) shall determ ine w ithin ten w orking days after receipt o f a request for access to records o f the Board whether to com p ly w ith such request; and he shall im m ediately notify the requesting party o f his d ecisio n , of the reasons therefor, and o f the right o f the requesting party to appeal to the Board any refusal to m ake avail able the requested records of the Board. (e) A p p ea l o f d e n ia l o f a ccess to r e co r d s of th e B o a r d . A ny person w ho is denied access to records o f the B oard, properly requested in accor dance w ith paragraph (d) o f this section , m ay file, w ith the Secretary o f the Board, w ithin ten days of notification of such den ial, a written request for review of such denial. The Board or such m em ber or m em bers as the Board m ay d esign ate, shall m ake a determ ination with respect to any such appeal w ithin 2 0 w orking days of its receipt, shall im m ediately notify the appealing party o f the d ecision on the appeal and the right to seek court review of any d ecision w hich upholds, in w h ole or in part, the refusal of the Secretary o f the Board to m ake available the requested records; and such determ ination shall not be subject to the procedure prescribed in § 2 6 5 .3 of this chapter w ith respect to review of actions taken pursuant to authority delegated by the Board. (f) E x ten sio n o f tim e r e q u ir e m e n ts in u n u su a l c ir c u m sta n c e s. In unusual circum stances as pro vided in 5 U .S .C . § 5 5 2 (a )(6 )(b ), the tim e lim ita tions im posed upon the Secretary o f the Board or the Board in paragraphs (d) and (e) of this section m ay be extended by written notice to the request ing party for a period o f tim e not to ex ceed a total of ten w orking days. (g) F ee sc h e d u le . A person requesting access to or co p ies o f particular records shall pay the costs of searching for and cop yin g such records at the rate o f $ 1 0 per hour for searching and 10 cents per standard page for cop yin g. W ith respect to inform ation obtainable on ly by processing through a com puter or other inform ation system s program, a person requesting such inform ation shall pay a fee not to ex ceed the direct and reasonable cost of retrieval and production of the inform ation requested. D etailed sch ed u les of such charges are available upon request from the Secretary o f the B oard. D ocum ents m ay be furnished w ithout charge or at a reduced charge w here the Secretary of the Board or such person as he m ay designate determ ines that w aiver or reduction o f the fee is in the public interest because furnishing the infor m ation can be considered as primarily benefiting the general public or w here total charges are less than $2. 3. E ffective February 19, 1975, section 2 6 1 .6 is am ended to read as fo llo w s: S e c t io D n 2 6 1 .6 — E x e m p t io n s F rom is c l o s u r e (1) is exem pted from disclosure by statute or is specifically authorized under criteria established by an execu tiv e order to be kept secret in the interest of national d efen se or foreign p o licy and is in fact classified pursuant to such ex ecu tiv e order; (4) is contained in investigatory files com p iled for law enforcem ent purposes (but only to the extent provided in the Freedom of Information A ct (5 U .S .C . § 5 5 2 (b )(7 )), including inform ation relating to p roceedings for (i) the issuance of cease-an d -d esist order, or order of suspension or rem oval, under the Financial Institutions Supervi sory A ct of 1966; (ii) the term ination of m em ber ship o f a State bank in the Federal R eserve System pursuant to section 9 of the Federal R eserve A ct (12 U .S .C . 327); (iii) the suspension o f a bank from use of the credit facilities o f the Federal Law Department R eserve System pursuant to section 4 of the F ed eral R eserve A ct (12 U .S .C . 301); and (iv) the granting or revocation o f any approval, perm is sion , or authority, excep t to the extent provided in this Part and excep t as provided in Part 262 of this chapter concerning bank h olding com pany and bank merger applications; M IS C E L L A N E O U S F o r e ig n O p e r a t io n s IN T E R P R E T A T IO N S u b s id ia r ie s In a previous interpretation, the Board deter m ined that a State m em ber bank w ould not violate the “ stock-purchase prohibition” o f section 5 1 3 6 of the R evised Statutes (12 U .S .C . 24 ^ 7) by purchasing and holding the shares o f a corporation w hich perform s “ at locations at w hich the bank is authorized to en gage in b u sin ess, functions that the bank is em pow ered to perform d irectly” 1 (1968 F e d e r a l R e s e r v e B u l l e t i n 6 8 1 , 12 C F R § 2 5 0 .1 4 1 ). The Board o f Governors has been asked by a State m em ber bank w hether, under that interpretation, the bank m ay establish such a socalled “ operations subsidiary” outside the U nited States. In the above interpretation the Board view ed the creation of a w h olly -o w n ed subsidiary w hich e n gaged in activities that the bank itself could per form directly as an alternative organizational ar rangem ent that w ould be perm issible for m em ber banks unless “ its use w ould be inconsistent w ith other Federal law , either statutory or ju d icial” . In the B oard’s judgm ent, the use by a m em ber bank o f operations subsidiaries outside the U nited States w ould be clearly inconsistent w ith the stat utory schem e of the Federal R eserve A ct govern ing the foreign investm ents and operations of m em ber banks. It is clear that C ongress has given m em ber banks the authority to conduct operations and m ake investm ents outside the U nited States only through gradually adopting a series o f specific statutory am endm ents to the Federal R eserve A ct, each of w hich has been carefully drawn to give the Board approval, supervisory, and regulatory authority over those operations and investm ents. N a tio n a l b an k in g a sso ciatio n s are p ro h ib ited by section 5136 of the R ev ised S tatu tes from p u rch asin g and ho ld in g shares of any c o rp o ra tio n ex cep t th o se co rp o ratio n s w hose shares are specifically m ade e lig ib le by statu te. T h is p ro h ib itio n is m ade ap p licab le to State m e m b e r b an k s by section 9 H 20 of the Fed eral R eserv e A ct (12 U .S .C . 335). 169 A s part of the original Federal R eserve A ct, national banks w ere, w ith the B oard’s perm ission, given the pow er to establish foreign branches.2 In 1916, C ongress am ended the Federal R eserve A ct to permit national banks to invest in international or foreign banking corporations know n as “ A greem en t” C orporations, because such cor porations w ere required to enter into an agreem ent or understanding w ith the Board to restrict their operations. Subject to such lim itations or restric tions as the Board m ay prescribe, such A greem ent C orporations m ay principally en gage in interna tional or foreign banking, or banking in a dep en dency or insular p o ssessio n o f the U nited States, either directly or through the agen cy, ow nership or control of local institutions in foreign countries, or in such d ep endencies or insular p o ssessio n s of the U nited States. In 1919 the enactm ent of section 25(a) o f the Federal R eserve A ct (the “ E dge A c t” ) permitted national banks to invest in Federally chartered international or foreign banking cor porations (so-called E dge C orporations) w hich may en gage in international or foreign banking or other international or foreign financial operations, or in banking or other financial operations in a dependency or insular p o ssessio n o f the U nited States, either directly or through the ow nership or control o f local institutions in foreign countries, or in such depen d en cies or insular p o ssessio n s. E dge Corporations m ay on ly purchase and hold stock in certain foreign subsidiaries w ith the co n sent o f the Board. And in 1966, C ongress am ended section 25 of the Federal R eserve A ct to allow national banks to invest directly in the shares of a foreign bank. In the B oard’s judgm ent, the above statutory schem e o f the Federal R eserve A ct e v i dences a clear C ongressional intent that m em ber banks m ay on ly purchase and hold stock in sub sidiaries located outside the U nited States through the prescribed statutory provisions o f section s 25 and 25(a) of the Federal R eserve A ct. It is through these statutorily prescribed form s of organization that m em ber banks m ust conduct their operations outside the U nited States. 2U nder section 9 of the Federal R eserv e A ct, S tate m em ber b a n k s, subject, of c o u rse, to any necessary a pproval from their S tate b anking a u th o rity , m ay e sta b lish fo reig n bran ch es on the sam e term s and subject to the sam e lim itatio n s and restrictio n s as are applicable to the e sta b lish m e n t of b ran ch es by national banks (12 U .S .C . 321). State m em b er banks m ay also purchase and hold shares of stock in E dge or A g reem en t C o rporations and foreign banks because n ational b a n k s, as a result of specific statutory ex ecep tio n s to the stock p u rch ase prohib itio n s of section 5136, can purchase and ho ld stock in these C o rp o ra tions or banks. Federal Reserve Bulletin □ March 1975 170 T o sum m arize, the Board has concluded that a m em ber bank m ay only organize and operate “ operations su b sid iaries” at location s in the U nited States. Investm ents by m em ber banks in foreign subsidiaries m ust be m ade either w ith the B oard’s perm ission under section 25 o f the Federal R eserve A ct or, w ith the B oard’s con sen t, through an E dge Corporation subsidiary under section 25(a) o f the Federal R eserve A ct or through an A greem ent Corporation subsidiary under section 25 o f the Federal R eserve A ct. In addition, it should be noted that bank holding com panies m ay acquire the shares o f certain foreign subsidiaries w ith the B oard’s approval under section 4 (c )(1 3 ) o f the Bank H olding C om pany A ct. T h ese statu tory sections taken together already g iv e m em ber banks a great deal o f organizational flexibility in conducting their operations abroad. FE D E R A L O PE N M A R K E T C O M M IT T E E R U L E S R E G A R D IN G A V A IL A B IL IT Y O F IN F O R M A T IO N The Federal O pen M arket C om m ittee has am ended its R ules R egarding A vailab ility o f In form ation to im plem ent the 1974 A m endm ents to the Freedom of Inform ation A ct. 1. E ffective February 19, 1975, section 2 7 1 .4 is am ended to read as fo llo w s: S e c t io th e P n 2 7 1 .4 — R u b l ic on R ecords A v a il a b l e to eq u est (c) O b ta in in g a c c e ss to r e c o r d s.— A ny person requesting access to records of the C om m ittee shall subm it such request in w riting to the Secretary of the C om m ittee. In any case in w hich the records requested, or co p ies thereof, are available at a Federal R eserve B ank, the Secretary o f the C om m ittee m ay so advise the person requesting a ccess to the records. Every request for access to records of the C om m ittee shall state the full nam e and address of the person requesting them and shall describe such records in a manner reasonably sufficient to permit their identification w ithout undue difficulty. T he Secretary o f the C om m ittee shall determ ine w ithin ten w orking days after receipt o f a request for access to records of the C om m ittee w hether to com p ly w ith such request; and he shall im m ediately notify the requesting party o f his d ecisio n , o f the reasons therefor, and o f the right of the requesting party to appeal to the C om m ittee any refusal to m ake available the requested records o f the C om m ittee. (d) A p p e a l o f d e n ia l o f a cc e ss to re c o r d s o f th e C o m m itte e .— A ny person w ho is denied a ccess to records of the C om m ittee, properly re quested in accordance w ith paragraph (c) o f this section , m ay file, w ith the Secretary o f the C om m ittee, w ithin ten days o f notification of such denial, a written request of such denial. The C om m ittee, or such m em ber or m em bers as the C om m ittee m ay designate (pursuant to section 2 7 2 .4 (c ) o f its R ules o f Procedure) shall m ake a determ ination w ith respect to any such appeal w ithin 20 w orking days o f its receipt, and shall im m ediately notify the appealing party o f the d e cisio n on the appeal and o f the right to seek court review o f any d ecision w h ich upholds in w h o le or in part, the refusal o f the Secretary o f the C om m ittee to m ake available the requested records. (e) E x te n sio n o f tim e r e q u ir e m e n ts in u n u su a l c ir c u m sta n c e s .— In unusual circum stances as provided in 5 U .S .C . § 5 52 (a )(6 )(b ), the tim e lim itation im posed upon the Secretary o f the C om m ittee or the C om m ittee or its designated representative [s] in paragraphs (c) and (d) o f this section m ay be extended by written notice to the requesting party for a period o f tim e not to ex ceed a total o f ten w orking days. (f) F e e sc h e d u le .— A person requesting access to or co p ies of particular records shall pay the costs o f searching and cop yin g such records at the rate o f $ 1 0 per hour for searching and 10 cents per standard page for cop yin g. W ith respect to infor m ation obtainable on ly by processing through a com puter or other inform ation system s program , a person requesting such inform ation shall pay a fee not to ex ceed the direct and reasonable cost o f retrieval and production o f the inform ation requested. D etailed schedules o f such charges are available upon request from the Secretary o f the C om m ittee. D ocu m en ts m ay be furnished w ithout charge or at a reduced charge where the Secretary of the C om m ittee or such person as he m ay d e sig nate determ ines that w aiver or reduction o f the fee is in the public interest because furnishing the inform ation can be considered as primarily b en e fiting the general pu b lic, or where total charges are less than $2. 2. E ffective February 19, 1975 section 2 7 1 .6 is am ended to read as fo llo w s: Law Department S e c t io D n 2 7 1 .6 — I n f o r m a t io n N ot S e c t io n 2 7 2 .3 — M 171 e e t in g s is c l o s e d (a) is exem pted from disclosure by statute or is specifically authorized under criteria established by an execu tive order to be kept secret in the interest of national defen se or foreign p olicy and is in fact properly classified pursuant to such execu tive order. ^ jfc # FEDERAL OPEN MARKET COMMITTEE RULES OF O R G A N IZ A T IO N RULES OF PRO CEDU RE AND The Federal O pen M arket C om m ittee of the Federal R eserve System has approved a realign m ent of staff personnel w ho supervise System open market operations under the C om m ittee’s direction at the N ew York R eserve Bank. The fo llo w in g revisions of the C om m ittee’s R ules are designed to reflect this staff personnel realignm ent. A M E N D M E N T TO R U L E S (d) A tten d a n ce a t m e e tin g s .— A ttendance at C om m ittee m eetin gs is restricted to m em bers and alternate m em bers o f the C om m ittee, the Pres idents of Federal R eserve Banks w ho are not at the tim e m em bers or alternates, staff officers of the C om m ittee, the M anager and D eputy M anag ers, and such other advisers as the C om m ittee m ay invite from tim e to tim e. (e) M e etin g a g e n d a s .— The Secretary, in co n sultation w ith the Chairm an, prepares an agenda of matters to be d iscu ssed at each m eeting and the Secretary transmits the agenda to the m em bers of the C om m ittee w ithin a reasonable tim e in advance of such m eetin g. In general, the agendas include approval o f m inutes of actions and accep tance of m em oranda o f d iscu ssion for previous m eetings; reports by the M anager or D eputy M an agers on open market operations since the previous m eetin g, and ratification by the C om m ittee o f such operations; reports by E con om ists o n , and C om m ittee d iscu ssion o f, the eco n o m ic and financial situation and outlook; C om m ittee d iscu ssion o f monetary p o licy and action w ith respect thereto; and such other matters as m ay be considered necessary. O F O R G A N IZ A T IO N R E G U L A T IO N E ffective February 19, 1 975, section 5 o f the C om m ittee’s R ules of O rganization is am ended to read as follow s: S e c t io n 5— M anager and D e p u t ie s The C om m ittee selects a M anager of the System Open M arket A ccou n t, a D eputy M anager for D om estic O perations, and a D eputy M anager for Foreign Operations. A ll o f the foregoin g shall be satisfactory to the Federal R eserve Bank selected by the C om m ittee to ex ecu te open market transac tions for such A ccou n t, and all shall serve at the pleasure of the C om m ittee. The M anager or his D eputies keep the C om m ittee inform ed on market conditions and on transactions they have m ade and render such reports as the C om m ittee m ay sp ecify. M ARK ET RESERVE TO R U L E S O PEN BANK S A M E N D M E N T R E L A T IN G T O O P E R A T IO N S T O R E G U L A T IO N O PE N O F M A R K E T FE D E R A L B A N K S O F PR O C E D U R E E ffective February 19, 1975, section 2 7 2 .3 is am ended to read as fo llo w s: TO OF FEDERAL The Federal O pen Market C om m ittee has re vised its R egulation R elating to Open Market Operations o f Federal R eserve B anks to authorize R eserve B anks other than the N ew Y ork R eserve Bank to purchase certificates of indebtedness d i rectly from the Treasury under circum stances other than only w hen the N ew York R eserve Bank is closed . R E SE R V E A M E N D M E N T R E L A T IN G O P E R A T IO N S E ffective January 3 0 , 197 5 , section 2 7 0 .4 o f the C om m ittee’s R egulation R elating to Open Market O perations o f Federal R eserve B anks is revised to read as fo llo w s: 172 Federal Reserve Bulletin □ March 1975 S e c t io n 2 7 0 .4 — T O r a n s a c t io n s in b l ig a t io n s (d) In accordance w ith such lim itations, term s, and conditions as are prescribed by law and in authorizations and directives issued by the C om B A N K H O L D IN G B A N K M E R G E R O RDERS UNDER H O L D IN G F ir s t O N C A N D IS S U E D B Y S E C T IO N 3 O F B A N K C O M PANY gden a p e r v il l e C O M P A N Y O R D E R S ACT o r p o r a t io n , , Il l in o is Order Denying Formation of Bank Holding Company First O gden C orporation, N ap erville, Illin o is, has applied for the B oard ’s approval under § 3(a)(1) o f the Bank H olding C om pany A ct (12 U .S .C . 1842 (a)(1)) to b ecom e a bank holding com pany through acquisition of 100 per cent of the voting shares (less directors’ q ualifying shares) o f the Bank of N ap erville, N ap erville, Illin ois. N otice of the application, affording opportunity for interested persons to subm it com m ents and v iew s has been g iv en (39 Federal R egister 2 7 8 3 7 ). T he tim e for filing com m ents and v iew s has e x pired, and the Board has considered the application and all com m ents received in light o f the factors set forth in § 3(c) o f the A ct (12 U .S .C . 1 8 42(c)). On the basis o f the record, the application is denied 1 for the reasons set forth in the B oard’s Statem ent, w hich w ill be released at a later date. B y order of the Board o f G overnors, effective January 2 7 , 1975. Voting for this action: Chairman Burns and Governors Mitchell, Sheehan, Bucher, Holland, and Coldwell. Absent and not voting: Governor Wallich. (S ign ed ) T h e o d o r e E. A l l i s o n , [s e a l ] Secretary of the Board . *In view of the B oard’s action with respect to the application to becom e a bank holding com pany, consideration of a con current application filed by Applicant to retain three nonbank ing subsidiaries becomes moot. Statement Denying Formation of Bank Holding Company First O gden Corporation, N ap erville, Illin o is, has applied for the B oard’s approval under § m ittee, the R eserve Bank selected by the C om m it tee (or, under sp ecial circum stances, such as w hen that Bank is c lo se d , any other Federal R eserve B ank) is authorized and directed, for its ow n account or the System O pen Market A ccou n t, to purchase directly from the U nited States such am ounts o f G overnm ent securities as m ay be n ec essary from tim e to tim e for the temporary ac com m odation o f the Treasury D epartm ent. T H E B O A R D O F G O V E R N O R S 3(a)(1) o f the Bank H old in g C om pany A ct (12 U .S .C . 1 8 42(a)(1)) o f form ation o f a bank holding com pany through acquisition o f 100 per cent o f the votin g shares (less directors’ qualifying shares) of the successor by merger to Bank o f N ap erville, N ap erville, Illin ois ( “ B an k ” ). The bank into w hich Bank is to be m erged has no significance excep t as a m eans to facilitate the acquisition of the votin g shares o f Bank. A ccord in gly, the proposed acquisition o f the shares o f the successor organization is treated herein as the proposed ac quisition of the shares o f Bank. A t the sam e tim e, A pplicant has applied for the B oard’s approval pursuant to § 4 (c)(8 ) o f the A ct (12 U .S .C . 1 8 4 3(c)(8 )) and § 2 2 5 .4 (b )(2 ) o f the B oard’s R egulation Y to retain three nonbanking subsidiaries en gaged , resp ectiv ely , in com m ercial finance (First Claren C orporation), full payout leasin g o f personal property (Firstline L easing C orporation), and data processing activities (First D ata S erv ices). Such activities have been deter m ined by the Board in § 2 2 5 .4 (a )(l)(6 )(a ) and (8 )(i) o f R egulation Y as perm issible for bank h olding com p an ies, subject to Board approval of individual proposals in accordance w ith the p roce dures o f § 2 2 5 .4 (b ). N o tice o f the applications, affording opportunity for interested persons to subm it com m ents and v ie w s, has been giv en in accordance w ith §§ 3 and 4 o f the A ct. The tim e for filing com m ents and v ie w s has expired, and the Board has co n sid ered the applications and all com m ents received in light of the factors set forth in § 3(c) o f the A ct and the considerations specified in § 4 (c)(8 ) of the A ct. A pplicant w as incorporated in 1968 for the purpose o f organizing new banks in the w estern suburbs o f C hicago and subsequently becam e e n gaged in providing a variety of serv ices, including m anagem ent advisory serv ices, for the banks it Law Department organized as w ell as for other b a n k s.1 A s o f A ugust 9 , 1974, A pplicant w as providing services to som e 18 client banks. In m ost in stan ces, the services are provided pursuant to a m anagem ent contract entered into by A pplicant and the clien t bank w hich provides that the fee paid to A pplicant is based on the total fo otin gs of the bank rather than consideration for services rendered. In addition to ow n in g up to 5 per cent of the voting shares in five o f the clien t banks, A pplicant controls seven nonbanking subsidiaries. A s part o f this proposal, A pplicant is seekin g to retain three o f its sub sid i aries w hich are en gaged in activities w hich the Board has determ ined to be c lo sely related to banking. B ank, on e of A p p lican t’s client banks, w as chartered by the State in 1957 and is a nonm em ber, Federally-insured bank. W ith deposits of $ 49 m il lion , Bank is the second largest o f three banks in the city o f N ap erville, a suburb of C h icago, and com p etes w ith m any substantially larger banking organizations in the C hicago banking market w here it holds .12 of 1 per cent of the total deposits in the m arket.2 On the basis o f the facts of record, it d oes not appear that con su m m a tion o f A p plican t’s proposal w ou ld elim inate any existin g com p etition , fo reclo se the d evelop m en t of potential com petition , nor result in an increase in the concentration o f banking resources. A ccord in g ly , com petitive considerations are consistent w ith A pplicant’s proposal to acquire Bank. The finanical condition and m anagerial re sources o f A pplicant and o f Bank are regarded as being generally satisfactory and the prospects o f each appear favorable. In con n ection w ith this proposal, A pplicant proposes to augm ent B an k ’s capital upon consum m ation o f the form ation. T hese considerations relating to the banking fa c tors are consistent w ith approval o f the application. It appears that consum m ation o f the proposal to acquire Bank w ou ld have no im m ediate effect on area banking needs; h o w ev er, considerations re lating to the co n ven ien ce and needs o f the com - ^ h e services A pplicant provides include advertising, audit ing, autom ation, assistance to new and existing banks on building and rem odeling design, correspondent bank relation ships, cost analysis, deposit relationships, banking forms— de sign and use, securing from insurers bankers blanket bond insurance on a group basis, interbank com m unication, land acquisition— site location and analysis for bank expansion, loan counselling and participations, long range planning, marketing research, personnel training and selection, portfolio counsel ling, public relations, educational program s for directors, as sisting banks in com m unicating with stockholders, trans portation needs— courier services, and legislative relationships. 2All banking data are as of June 30, 1974. 173 m unity to be served are also con sisten t w ith ap proval of the application. In the course of the processin g o f this proposal, the Board has carefully considered the nature and scop e of the services that A pplicant presently provides to its clien t banks. In con n ection w ith the application to form a bank holding com p an y, A pplicant originally proposed that it w ould co n tinue to provide a w id e range o f advisory services to its client banks. H o w ev er, w h ile the application w as pending, the Board am ended R egulation Y by adding § 2 2 5 .4 (a )(1 2 ), w h ich provides the manner and circum stances under w hich a bank holding com pany m ay provide m anagem ent advice to nonaffiliated banks. S in ce the activities engaged in by A pplicant w ith respect to its clien t banks are clearly not p erm issible under the am endm ent to R egulation Y , A pplicant am ended its applica tion and indicated that the advisory services that it perform s for its client banks w ou ld be shifted to Bank through the establishm ent o f a banking services d iv isio n w ithin Bank. T hus, under the application as presently constituted, it is proposed that Bank w ou ld provide to the clien t banks ser v ices substantially sim ilar to those now offered by A pplicant. In other w ord s, A pplicant is attem pting to en gage indirectly through B ank in activities w hich it is precluded from perform ing directly under the Bank H old in g C om pany A ct and the B oard’s regulation. In v iew of the attempt by A pplicant to circum vent the provisions o f the A ct and the B oard’s R egulation Y , the Board w as particularly inter ested in determ ining whether the advisory services that were to be transferred to Bank w ere p erm issi ble activities for a State bank under Illin ois law . In this co n n ection , the A ctin g C om m ission er of B anks, in responding to a request for his v iew s on the application noted: “ In m y op in ion , som e of the a ctivities, at least in the group o f banking services to be rendered, are not w ithin those char tered authorities granted to a State b a n k .” 3 A c cord in gly, in v ie w o f the opinion o f the A ctin g C om m issioner, there ex ists a presum ption that Bank could not leg a lly perform all the advisory services for the clien t banks w h ich are con tem plated by the application before the Board. S ince the perform ance o f these advisory services is an integral elem ent in the proposal o f A pplicant and since it appears that som e of the activities are 3Letter of October 28, 1974, addressed to the Secretary of the Board of Governors from Richard K. Lignoul, Acting Com missioner of Banks and Trust Companies. 174 Federal Reserve Bulletin □ March 1975 im perm issible to Bank under State la w , the B oard, in the exercise o f its responsibility under the Bank H olding C om pany A ct, d oes not b eliev e it w ould be in the public interest to approve a plan that by its very nature appears to be in violation of State law . In light of the above d iscu ssion , it is the B oard ’s judgm ent that consum m ation of the proposal w ould not be in the public interest and that the application should, therefore, be denied. Voting for this action: Chairman Burns and Governors Mitchell, Sheehan, Bucher, Holland, and Coldwell. Absent and not voting: Governor Wallich. In view of the Board’s action with respect to the application to become a bank holding company, consideration of a concurrent application filed by Applicant to retain three nonbanking subsidiaries becomes moot. Concurring Statement of Governors Mitchell and Coldwell W hile w e concur in the B oard’s action in d en y ing the application o f First O gden Corporation to becom e a bank holding com pany through the ac quisition o f Bank o f N ap erville, w e w ish to ela b o rate on the reasons w e b eliev e such action is clearly warranted by the underlying purposes of the Bank H olding C om pany A ct. A s noted in the m ajority’s Statem ent, A pplicant presently perform s m anagem ent advisory services for 18 client banks located in Illin ois. A pplicant originally proposed to continue such activities after the acquisition o f the Bank o f N ap erville. H o w ever, during the p rocessin g o f the proposal, the Board am ended R egulation Y to permit bank holding com panies to provide m anagem ent co n sulting advice to nonaffiliated banks (12 C .F .R . § 2 2 5 .4 (a )(1 2 )). S in ce m any of the services o f fered by A pplicant to its client banks w ould not be perm issible under the am ended regulation, both because of the nature o f the services and the manner in w hich they are perform ed, A pplicant am ended its proposal and indicated that the per form ance of the m anagem ent advisory services w ould be transferred to Bank o f N ap erville. In this m anner, A pplicant hopes to avoid those restric tions that the Board has placed on the circum stances under w hich a bank holding com pany m ay directly offer m anagem ent advice to nonaffiliated banks. U nder section 4 (a )(2 ) o f the A ct, a bank holding com pany is perm itted generally to en gage in the business of m anaging or controlling banks or of furnishing services to or perform ing services for its subsidiaries. In interpreting this statutory pro vision prior to the 1970 A m endm ents to the A ct, the Board opined that furnishing or providing services to nonsubsidiary banks w as prohibited by the section , since to con clu d e otherw ise “ w ould m ake it p ossib le for a bank holding com pany . . . to acquire effectiv e control o f banks w ithout acquiring bank stocks and thus to evade the un derlying o b jectives o f section 3 of the A c t.” (12 C .F .R . 2 2 5 .1 1 3 ). In am ending R egulation Y to permit bank h old ing com panies to provide m anagem ent advice to nonaffiliated banks, the Board carefully delineated the scop e of the services and the manner in w hich they could be offered so as to avoid the p ossib ility that a bank holding com pany w ould acquire co n trol of banks to w h ich it provides services (12 C .F .R . 2 2 5 .1 3 1 ). The circum stances under w hich Bank o f N aperville w ou ld perform the advisory services to the client banks are substantially at variance w ith the criteria set dow n by the Board in § 2 2 5 .4 (a )(1 2 ) of R egulation Y in that A pplicant holds equity securities in som e o f the client banks; various officers and directors o f A pplicant serve in a sim ilar capacity w ith the client banks; and the services are perform ed on a daily or continuous basis. In order to avoid the strictures placed on the offering of advisory services to nonaffiliated banks, A pplicant proposes to transfer the per form ance o f these advisory services to Bank and thereafter to continue to do indirectly what it is prohibited from doing directly under the A ct and the B oard’s R egulation. T o approve A p p lican t’s proposal to b ecom e a bank h olding com pany w ould countenance A p p lican t’s efforts to circum vent the underlying purposes of the A ct and the provisions o f the B oard ’s R egulation. In our judg m ent, such action w ou ld not be in the public interest and, accord in gly, the application should be denied. February 2 4 , 1975 C W o l o n ia l B aterbury anco rp, , C In c ., o n n e c t ic u t Order Approving Acquisition of Bank C olonial B ancorp, In c., W aterbury, C on n ecti cut, a bank holding com pany w ithin the m eaning of the Bank H old in g C om pany A ct, has applied for the B oard’s approval under § 3(a)(3) o f the A ct (12 U .S .C . 1 8 4 2 (a)(3)) to acquire all o f the votin g shares of Secon d N ew H aven B ank, N ew H aven , C onnecticut. N o tice o f the application, affording opportunity for interested persons to subm it com m ents and v ie w s, has been g iv en in accordance w ith § 3(b) Law Department of the A ct. The tim e for filing com m ents and v iew s has expired, and the Board has considered the application and all com m ents received in light o f the factors set forth in § 3(c) of the A ct (12 U .S .C . 1842(c)). A pplicant controls one bank, The C olonial Bank and Trust C om pany, w ith deposits o f $ 3 3 2 .4 m il lion , representing 4 .8 per cent o f the total deposits in com m ercial banks in the State, and is the seventh largest com m ercial banking organization in C onnecticut. Bank is the tenth largest com m er cial banking organization in the State and holds deposits of $ 2 0 2 .3 m illio n , representing 2 .9 per cent of the deposits in com m ercial banks in the State.1 A cquisition of Bank w ould increase A p p li cant’s deposits to $ 5 3 4 .7 m illion (about 8 per cent of the deposits in the State) and w ould result in it b ecom ing the fourth largest com m ercial banking organization in C onnecticut. In v iew o f the struc ture of banking in C onnecticut, the Board d oes not regard the increase in concentration that w ould result from this proposal as a factor warranting d en ia l. Bank is the second largest banking organization in the N ew H aven market (approxim ated by the N ew H aven R M A ) by virtue o f its control of 2 0 .8 per cent o f the com m ercial bank deposits in the market. A pp lican t’s subsidiary bank also operates offices in the N ew H aven market and, as a result of the consum m ation of this proposal, A pplicant w ould control approxim ately 2 4 .2 per cent o f the deposits in the market. H o w ev er, the State’s three largest banking organizations (C B T Corporation, N ortheast B ancorp, In c ., and Hartford N ational Corporation) have offices in the market and to gether they account for about 2 8 .1 per cent o f the total com m ercial bank deposits in the market. The Board v iew s this proposal, therefore, as an appro priate m eans w hereby A pplicant w ou ld enhance its ability to com pete m ore effectiv ely w ith these largest organizations operating in the market. A s noted ab ove, A pplicant is presently repre sented in the N ew H aven market; h ow ever, A p plicant’s subsidiary bank, w hich is headquartered in W aterbury, com p etes primarily in the W aterbury market. In the N ew H aven market, A p p li cant’s subsidiary operates a total of five offices, all of w hich are located on the fringe o f the market and do not appear to exert a significant com petitive influence on the eco n o m ic hub o f the market, the city of N ew H aven. S ince both A pplicant and Bank operate in the sam e market, som e amount *State banking data are as of June 3 0 , 1974. 175 of existin g com petition w ou ld be elim inated as a result of this proposal. H o w ever, on b alan ce, the Board b eliev es that the effects on existin g c o m p e tition w ould not be significant. In assessin g the effects o f the proposal on p o tential com p etition , the Board notes that C o n n ec ticu t’s banking law contains a hom e office protec tion p rovision w hich generally prohibits branching into tow ns w here the hom e office o f another bank is located. A p p lican t’s subsidiary is prohibited from branching into N ew H aven and B ank is precluded from branching into W aterbury. “ O p en ” tow ns ex ist in both the N ew H aven and W aterbury markets into w hich A pplicant or Bank could branch and there are a lim ited number of sm aller banks available for acquisition; h ow ever, neither branching nor a sm aller acquisition w ould enable A pplicant or Bank to com pete effectiv ely in the principal city o f the other’s market. M ore over, B an k ’s history o f expansion and growth indicates that, absent affilation w ith A pplicant, Bank is unlikely to expand into the W aterbury market. A lthough A p p lican t’s de novo entry into the City o f N ew H aven is p o ssib le, in v iew o f the apparent difficulties o f obtaining a national charter or of A pplicant affiliating w ith a n ew ly chartered State bank, such entry by A pplicant appears rem ote. A ccord in gly, on the basis of the facts of record, the Board con clu d es that co n su m m ation of the proposed transaction w ou ld not have a significantly adverse effect on potential co m p eti tion. The financial condition and m anagerial re sources of A pplicant and Bank appear to be g en erally satisfactory and consistent w ith approval o f the application. A s a result o f the acquisition, Bank w ill decrease or elim inate service charges on dem and deposit accounts, increase interest rates on tim e and savings d ep o sits, low er interest rates on retail instalm ent loans and im prove the a v ail ability of m ortgage financing in the N ew H aven area. In the N ew H aven market, Bank w ill be able to offer expanded services to C on n ecticu t’s largest banking custom ers and generally be able to c o m pete more effectiv ely w ith larger banking organi zations operating in that market. T herefore, c o n siderations relating to co n v en ien ce and needs lend w eigh t toward approval and o u tw eigh any slight anticom petitive effects on existin g com petition that m ay result from the proposed transaction. A c cord in gly, it is the B oard’s judgm ent that co n sum m ation o f the proposed transaction w ould be in the public interest and that the application should be approved. 176 Federal Reserve Bulletin □ March 1975 On the basis o f the record, the application is approved for the reasons sum m arized ab ove. The transaction shall not be m ade (a) before the thir tieth calendar day fo llo w in g the effectiv e date of this Order or (b) later than three m onths after the effective date o f this Order, unless such period is extended for good cause by the Board, or by the Federal R eserve Bank o f B oston pursuant to delegated authority. B y order of the Board of G overnors, effective February 11, 1975. Voting for this action: Chairman Burns and Governors Mitchell, Sheehan, and Bucher. Voting against this action: Governors Holland, Wallich, and Coldwell. (S ign ed ) T h e o d o r e E. A l l i s o n , [s e a l ] Secretary of the Board. Dissenting Statement of Governors Holland, Wallich, and Coldwell W e w ould deny the application o f C olonial Bancorp to acquire S econ d N ew H aven Bank because of adverse effects the proposal w ould have on the concentration o f banking resources in the N ew H aven market as w ell as on ex istin g and future com petition in that market. In our v ie w , these adverse effects are not ou tw eigh ed by other considerations reflected in the record and, accord in g ly , the application should be denied. A lthough T he C olonial Bank and Trust, A p p li cant’s sole banking subsidiary, is headquartered in W aterbury and operates prim arily in the W aterbury banking market, it also has five offices in the N ew H aven market and holds about $ 3 0 m il lion , or 3 .4 per cen t, o f the total deposits in the N ew H aven market, m aking it the seventh largest banking organization in that market. Secon d N ew H aven Bank is the secon d largest banking organi zation in the N e w H aven market w ith approxi m ately 21 per cent o f the m arket’s d ep osits. In v iew o f the already high le v el o f deposit c o n cen tration in the market (the four largest banking organizations hold 75 per cent o f the d ep o sits), w e are concerned about the further increase in lev el of concentration that w ould result from this proposal. In addition to the adverse effects on concentra tion, the proposal w ill result in the elim ination of existin g com petition b etw een A pplicant’s su b sid i ary and Second N ew H aven. C olonial has one office in the market on ly one m ile from an office of Secon d N ew H aven; its other four offices in the market are anyw here from four to fifteen m iles from offices o f S econd N ew H aven. A ccord in gly, w e conclu de that the proposal w ill elim inate sig nificant ex istin g com petition b etw een C olonial and S econd N ew H aven. Furthermore, the proposal w ill fo reclo se sig n if icant future com petition that w ould be exp ected to d evelop betw een the tw o banking organizations in the N ew H aven market. A pplicant has already exhibited its ability to participate in the N ew H aven market by establishing five branch offices and, g iven its significant size and resources, w e b eliev e that A pplicant w ou ld expand further into those cities in the market that are open to branch ing. A lso , Secon d N ew H aven , as evid en ced by its present size and p osition in the N ew H aven banking market is a significant com petitive force as dem onstrated by its ability and w illin g n ess to expand and grow . T his proposal w ould elim inate S econd N ew H aven as an independent banking alternative. T herefore, denial o f this application w ould preserve the p ossib ility that A pplicant w ould ch o o se som e less anticom petitive m eans to expand its interests in the market, w h ile at the sam e tim e preserving Secon d N ew H aven as a viable com p etitive alternative. T he majority has concluded that the anticom pe titive effects o f the proposal are ou tw eigh ed by benefits that w ould accrue to the public. W e d is agree w ith that con clu sion . Several of the largest banking organizations in the State are already represented in the N ew H aven market, and the com bination o f A pplicant and Secon d N ew H aven, each of w hich has operated as an effective in d e pendent com petitior in the past, cannot be e x p ected , in our judgm ent, to result in any substan tial benefits to the public. For the foregoin g reasons, w e w ould deny the application. T en nessee V N a s h v il l e , T alley B anco rp, In c ., en nessee Order Denying Acquisition of Bank T en n essee V a lley B ancorp, In c ., N a sh v ille, T en n essee, a bank holding com pany w ithin the m eaning o f the Bank H old in g C om pany A ct, has applied for the B oard ’s approval under § 3(a)(3) of the A ct (12 U .S .C . 18 4 2 (a )(3 )) to acquire all o f the voting shares o f V a lley F idelity Bank and Trust C om pany, K n o x v ille , T en n essee ( “ B an k ” ). N o tice o f the application, affording opportu nity for interested persons to subm it com m ents and v ie w s, has been g iv en in accordance w ith § 3(b) o f the A ct. The tim e for filing com m ents and v ie w s has expired, and the Board has considered the application and all com m en ts received in light o f Law Department the factors set forth in § 3 (c) o f the A ct (12 U .S .C . 1842(c)). A pplicant, the fourth largest com m ercial bank ing organization in T en n essee, controls 12 banks w ith aggregate deposits o f about $ 9 0 9 m illio n , representing approxim ately 7 .9 per cent o f total deposits held by com m ercial banks in the S ta te.1 A cqu isition o f Bank (deposits o f about $ 9 4 .5 m il lion) w ould increase A p p lican t’s share o f c o m m ercial bank deposits in the State by approxi m ately .8 o f one per cent, and A pplicant w ould b ecom e the S tate’s third largest banking organi zation. B ank, the third largest o f 14 banks in the K n oxville area banking m arket,2 controls approxi m ately 8 .9 per cent o f the total deposits in c o m m ercial banks in this market. A pplicant is not presently represented in the K n oxville banking market, and its clo sest subsidiary is located 67 m iles northeast o f Bank in a separate banking market. It appears from the record that no signifi cant existin g com petition w ould be elim inated as a result o f this proposal. On the other hand, the proposal w ould result in the foreclosure of de novo entry. D ue to population and deposits per banking office ratios higher than that for the State as a w h o le, the K n oxville area banking market appears to be relatively attractive for- de novo entry. A p plicant has previou sly used de novo entry as a m eans of entering the C hattanooga and M em phis banking m arkets. T hus, A pplicant m ay be re garded as a p ossib le de novo entrant into the K n oxville market. A ccord in gly, based on the foregoing and other facts o f record, the Board conclu des that consum m ation o f the proposed ac quisition w ould have slight adverse effects on potential com petition. The present proposal is not an exch an ge of stock but contem plates an im m ediate cash outlay in ex cess of $9 m illion . In this con n ection , the Board notes that the capital o f A p p lican t’s lead bank has not grow n at a rate com parable w ith its assets grow th, and its present capital p osition is low er than what the Board regards as desirable. In these circum stances, it w ou ld be preferable for A p p li cant to use its resources to augm ent the capital p osition o f its lead bank rather than for expansion o f A pplicant’s banking interests at this tim e. A c cordingly, based on the fo reg o in g , the Board co n cludes that considerations relating to the financial aspects o f A pplican t’s proposal w eig h against ap proval of the application. *A11 banking data are as of June 30, 1974. 2 The K noxville area banking market is approximated by Anderson, Blount, and Knox counties. 111 W ith respect to con ven ien ce and needs co n sid erations, A pplicant proposes to expand the serv ices presently offered by Bank to include: eq u ip m ent lea sin g , factoring, accounts receivab le fin ancing, international banking serv ices, and in v est m ent m anagem ent services. W h ile these co n sid erations relating to the co n v en ien ce and needs o f com m unity to be served lend som e w eigh t toward approval o f the application, they do not ou tw eigh the adverse findings w ith respect to the financial factors in volved in A p p lican t’s proposal. B ased upon the foregoin g and other co n sid erations reflected in the record, the Board co n cludes that the financial considerations in volved in the proposal present adverse factors bearing on the financial condition and future prospects of A pplicant and B ank. Such adverse factors are not outw eighed by any procom petitive effects or by the benefits w hich w ould result in serving the con ven ien ce and needs o f the com m unity. A c cord in gly, it is the B oard’s judgm ent that approval o f the application w ould not be in the public interest and that the application should b e, and hereby is, denied. B y order o f the Board o f G overnors, effectiv e February 2 5 , 1975. Voting for this action: Vice Chairman Mitchell and Gover nors Sheehan, Bucher, and Wallich. Absent and not voting: Chairman Burns and Governors Holland and Coldwell. (S ign ed ) T h e o d o r e E. A l l i s o n , S ecretary of the Board. [s e a l ] O RDER U NDER H O L D IN G A m er ic a n St . Pa u l S E C T IO N CO M PA NY B a n c o r po r a t io n , M 4 OF BAN K ACT , In c ., in n eso ta Order Approving Acquisition of Glasser-American Mortgage Company A m erican Bancorporation, In c ., St. Paul, M in nesota, a bank holding com pany w ithin the m ean ing o f the Bank H old in g C om pany A ct, has ap plied for the B oard’s approval, under section 4 (c)(8 ) of the A ct and § 2 2 5 .4 (b )(1 ) o f the B oard’s R egulation Y , to acquire all o f the voting shares o f G la s s e r - A m e r ic a n M o r tg a g e C o m p a n y ( “ G A M C ” ), E n g lew o o d C liffs, N ew Jersey, a proposed new com pany that w ould en gage in the activities o f a m ortgage banker, including o rigi nating, sellin g , and servicing m ortgage loans for its ow n account or for the accounts o f others. Such activities have been determ ined by the Board to be clo se ly related to banking (12 CFR 2 2 5 .4 (a )(1 ) and (3)). 178 Federal Reserve Bulletin □ March 1975 N otice o f the application, affording opportunity for interested persons to subm it com m ents and v iew s on the public interest factors, has been duly published (39 Federal R egister 3 9 9 1 2 ). The tim e for filing com m ents and v iew s has expired, and the Board has considered the application and all com m ents received in the light o f the public inter est factors set forth in section 4 (c )(8 ) o f the A ct (12 U .S .C . 184 3 (c)(8 )). A pplicant, the fourth largest banking organi zation in M innesota, controls five banks w ith ag gregate deposits o f $ 325 m illio n , representing 2 .6 per cent of the total deposits in com m ercial banks in the S tate.1 A pplicant also en gages in such nonbanking activities as personal property leasin g, com m ercial finance, and insurance activities. G A M C w ill operate out o f an office in E n g lew o o d C liffs, N ew Jersey, and w ill primarily serve the m etropolitan N ew York m arket.2 C om peting in that market are 115 com m ercial banking organizations, at least 50 thrift institutions, and over 7 0 other firms w hich en gage in the origination o f m ortgages. It w ou ld appear that no significant existin g or future com petition w ould be elim inated upon approval of the application. M oreover, entry by A pplicant on a de novo basis into this field should produce benefits to the public by adding an additional com petitor that offers this sp ecialized service. In its consideration of this application, the Board has exam ined a covenant not to com pete contained in an em p loym en t agreem ent b etw een G A M C and its proposed ch ief ex ecu tiv e. The Board finds that the provision s of this covenant are reasonable in sco p e, duration, and geographic area and are consistent w ith the public interest. There is no ev id en ce in the record indicating that consum m ation o f the proposed transaction w ou ld result in any undue concentration o f re sources, unfair com p etition , conflicts of interests, unsound banking practices, or other adverse e f fects on the public interest. B ased upon the foregoin g and other co n sid erations reflected in the record, the Board has determ ined that the balance o f the public interest factors the Board is required to consider under section 4 (c)(8 ) is favorable. A ccord in gly, the ap plication is hereby approved. T his determ ination is subject to the con d ition s set forth in section 2 2 5 .4 (c ) o f R egulation Y and to the B oard’s au thority to require such m odification or term ination of the activities of a holding com pany or any of its subsidiaries as the Board finds necessary to assure com p lian ce w ith the provisions and pur p oses of the A ct and the B oard ’s regulations and orders issued thereunder, or to prevent evasion thereof. The transaction shall be m ade not later than three m onths after the effectiv e date of this Order, u nless such period is extended for good cause by the Board or by the Federal R eserve Bank of M in n eap olis, pursuant to delegated authority. B y order o f the Board o f G overnors, effectiv e February 12, 1975. Voting for this action: Governor Sheehan, Bucher, Holland, and Coldwell. Voting against this action: Vice Chairman Mitchell. Absent and not voting: Chairman Burns and Gover nor Wallich. (S ign ed ) T h e o d o r e E. A l l i s o n , Secretary of the B oard. [s e a l] Dissenting Statement of Vice Chairman Mitchell I w ould deny the application of A m erican B an corporation to en gage de novo through a sub sid i ary, G lasser-A m erican, in m ortgage banking ac tivities. U n lik e the m ajority, I b eliev e that c o n sum m ation o f the proposed transaction w ould not produce m eaningful benefits to the public by add ing an additional com petitor in the m etropolitan N ew Y ork m ortgage banking market. Further m ore, I do not b e lie v e a holding com pany of A p p lican t’s size can expand into a market nearly 1 ,0 0 0 m iles distant from its hom e office w ithout encountering serious problem s of control and supervision. V entures of this type m ay be justified from the corporate interest, but this potential risk to the A p p lican t’s public obligation is not justified. For these reasons, I do not regard the proposal as b ein g in the public interest, and w ould deny the application. O RDER U NDER OF BAN K *A11 b a n k in g d a ta are as o f D ecem b er 3 1, 1973, and reflect b an k h o ld in g c o m p an y fo rm atio n s and acq u isitio n s app ro ved th ro u g h N o v em b er 3 0 , 1974. 2T h e m etro p o litan N ew Y o rk m ark et in clu d es N ew Y ork C ity , all of N a ssau , P u tn a m , R o ck lan d and W estc h e ste r C o u n ties and w estern Suffolk C o u n ty in N ew Y o rk ; n o rth ern B erg en C o u n ty and e aste rn H u d so n C o u n ty in N ew Jerse y , and part of F airfield C o u n ty in C o n n ecticu t. S E C T IO N S 3 A N D H O L D IN G Stuarco O il D , C o m pany , In 4 ACT olorado enver C CO M PANY c ., Order Denying Acquisition of Bank and Engaging in Insurance Agency Activities Stuarco O il C om pany, In c., D en ver, C olorado, a bank holding com pany w ithin the m eaning of Law Department the Bank H olding C om pany A c t,1 has applied for the B oard’s approval under § 3(a)(3) o f the A ct (12 U .S .C . 1842(a)(3)) to acquire 80 per cent or m ore of the voting shares of A lam eda N ational Bank ( “ B an k ” ), L ak ew ood , C olorado. A t the sam e tim e, A pplicant has applied for the B oard’s approval under § 4 (c )(8 ) o f the A ct (12 U .S .C 18 4 3 (c)(8 )) and § 2 2 5 .4 (b )(2 ) o f the B oard’s R egulation Y , to en gage de novo in certain insurance agency activities in connection w ith its proposed acquisition of Bank. Such activities have been determ ined by the Board to be c lo se ly related to banking (12 CFR 2 2 5 .4 (a )(9 )). N otice o f the receipt o f the applications, afford ing opportunity for interested persons to subm it com m ents and v ie w s, has b een g iv en in accor dance w ith §§ 3 and 4 o f the A ct (39 Federal R egister 3 7 8 3 0 ). T he tim e for filing com m ents and v iew s has expired, and all com m ents and v iew s received have been considered by the Board in light o f the factors set forth in § 3(c) o f the A ct (12 U .S .C . 1842(c)) and § 4 (c)(8 ) o f the A ct (12 U .S .C . 1843(c)). A pplicant, presently a one-bank holding c o m pany, controls U n ion Bank and Trust, D en ver, C olorado, the fifteenth largest o f 7 0 banks in the D enver banking m arket,2 w ith deposits o f $ 3 8 .8 m illio n ,3 representing approxim ately 1 per cent o f the total deposits in com m ercial banks in the market. The acquisition o f Bank w ould result in A pplicant’s becom in g the ninth largest o f 11 m ulti-bank holding com panies in the State and the tenth largest banking organization in the D enver banking market, w ith A pplicant controlling less than 1 per cent o f the total com m ercial bank deposits in the State and about 1.5 per cent o f the total deposits in com m ercial banks in the market. B ank (deposits o f $ 2 0 .3 m illion ) is the tw entyfourth largest of 7 0 com m ercial banks in the D enver banking market and controls approxi m ately 0 .5 per cent o f the total deposits in co m m ercial banks in the market. S in ce both Bank and A pp licant’s present subsidiary bank operate in the D enver banking m arket, consum m ation o f this proposal w ould elim inate som e existin g com p eti tion b etw een these institutions. H o w ev er, there is evid en ce in the record sh ow in g that the com p eti 1Applicant was form erly engaged in oil and gas exploration activities, but has ceased all such activities and disposed of all assets related thereto. 2The Denver banking market is the relevant market for this application and is approxim ated by D enver, Adam s, Arapahoe, and Jefferson Counties, and a portion of Boulder County which includes the City of Broomfield. 3All banking data are as of December 31, 1973. 179 tion betw een these banks is m inim al in v iew of the relatively sm all market shares o f both banks and the presence o f som e 65 com peting banks located w ithin the areas served by the tw o banks. Furthermore, on b alance, the Board is o f the v iew that this proposal cou ld have a p ositive effect on com petition by creating an additional m ulti-bank holding com pany to com pete in the D enver bank ing market. A cco rd in g ly, the Board con clu d es that com petitive considerations lend som e w eigh t toward approval o f the application. Under the Bank H olding C om pany A ct, the Board is required to consider the financial and m anagerial resources and future prospects o f the holding com pany and its subsidiary banks. In the exercise of that resp on sib ility, the Board finds that considerations relating to the financial resources of A pplicant warrant denial of the application. The Board has previou sly stated that less restrictive debt-equity standards can appropriately be applied to prospective one-bank holding com panies if the adverse effects associated w ith leverage are out w eigh ed by public benefits deriving from the fa c i litation o f the otherw ise difficult task o f transfer ring ow nership o f sm all rural banks. H o w ev er, the Board also has previou sly stated its v iew that the financial structure o f a m ulti-bank holding c o m pany should m eet higher standards o f financial soundness than are applied to one-bank h olding co m p a n ies.4 In applying this p o licy , the Board finds that A pplicant, in this proposed transition from a one-bank holding com pany to a m ulti-bank holding com p an y, should not be permitted to incur the proposed am ount o f debt to acquire a secon d bank. A pplicant proposes to borrow an additional $ 2 .2 m illion to finance the purchase o f B ank, w ith the result that A pplicant w ould have an outstand ing long-term debt o f $ 5 .2 m illion . A p p lican t’s earnings w ou ld be h eavily dependent upon the earnings of its subsidiary banks, and A pplicant is proposing to service this long-term debt over an 11-year period prim arily through dividends from its subsidiary banks. A p p lican t’s proposal for re tirement of the debt is contingent upon the b anks’ m aintaining an average dividend payout ratio o f 52 per cent throughout the 11-year period. In the B oard’s v ie w , the projected earnings o f A pplicant w ould not provide A pplicant w ith the necessary financial flexibility to m eet its annual debt servic ing requirem ents as w ell as any unexpected prob lem that m ight arise at the subsidiary banks. T his factor strongly su ggests that the financial require4See the B oard’s Order of January 15, 1974, denying the application of BHCo, In c ., Hardin, M ontana, to become a bank holding company (60 B u l l e t i n 123). 180 Federal Reserve Bulletin □ March 1975 m ents o f A pp lican t’s proposal could place an undue strain on the financial conditions o f the subsidiary banks and thereby impair their ability to remain viable banking organizations in m eeting the banking needs o f the com m unity w h ich they serve. Such considerations relating to the financial condition and prospects o f A pplicant, in addition to other facts o f record, lend substantial w eigh t toward denial of the application and ou tw eigh any procom petitive effects that m ight result from ap proval of the application. A pplicant states that affiliation w ith A pplicant w ould enable Bank to draw upon the resources and expertise of A pplicant and its present su b sid i ary bank, and to increase the services and the volu m e of loans w h ich Bank offers to its cu stom ers. H ow ever, since the Board has found that consum m ation o f this proposal could place an undue strain upon A p p lican t’s financial resources, the Board b eliev es that it is doubtful that any appreciable benefits to the public w ou ld result from this proposal. A ccord in gly, considerations relating to the con ven ien ce and needs o f the com m unity to be served lend no w eigh t toward approval o f the application. On the basis of all the facts of record, and in light o f the factors set forth in § 3 (c) o f the A ct, it is the B oard’s judgm ent that the proposed ac quisition w ould result in A pplicant’s financial re sources being inadequate to service its debt w h ile m aintaining its subsidiary b anks’ capital accounts O R D E R S N O T P R IN T E D O RDERS APPRO VED BY IN TH E T H IS at a desirable le v el and that such condition could impair the ability o f the banks to m eet the needs of the com m unity w h ich they serve. A ccord in gly, the Board con clu d es that consum m ation of this proposal w ou ld not be in the public interest and that the application to acquire Bank should be denied. Incident to this proposal, A pplicant has also applied pursuant to § 4 (c)(8 ) o f the A ct to en gage de novo in the activities o f an insurance agent or broker w ith respect to insurance for the holding com pany and its subsidiaries, and also w ith respect to credit life and credit accident and health insur ance directly related to exten sion s o f credit by A lam eda N ational Bank. A pproval o f this proposal w ould permit A pplicant to offer B an k ’s custom ers the con ven ien ce o f obtaining banking and insur ance ‘ services in conjunction w ith each other. H o w ev er, in v iew o f the B oard’s finding that the application to acquire Bank m ust be d en ied , the B oard ’s consideration o f the application to conduct insurance agency activities on the prem ises of Bank hereby b eco m es m oot. B y order o f the Board o f G overnors, effective February 2 4 , 1975. Voting for this action: Vice Chairman Mitchell and Gover nors Sheehan, Bucher, Holland, and Coldwell. Absent and not voting: Chairman Burns and Governor Wallich. (S ign ed ) T h e o d o r e E. A l l i s o n , Secretary of the Board. [s e a l ] IS S U E BO ARD OF G O VERNO RS D uring February 1 9 7 5 , the Board of G overnors approved the applications listed b elo w . The orders have been published in the Federal R egister, and cop ies o f the orders are available upon request to Publications S erv ices, D iv isio n of A dm inistrative S erv ices, Board of G overnors o f the Federal R eserve System , W ashington, D .C . 2 0 5 5 1 . O RDERS UND ER S E C T IO N A P P L IC A T IO N S F O R Applicant A labam a Bancorporation, B irm ingham , A labam a A m eribanc, In c ., St. Joseph, M issouri A ssociated Bank Corpora tion, Iow a C ity, Iow a 3 (a )(3 ) O F B A N K A C Q U IS IT IO N H O L D IN G CO M PAN Y ACT— OF BAN K Bank(s) The Bank of Arab, Arab, A labam a B ank o f H ig g in sv ille , H ig g in sv ille , M issouri C om m unity State Bank o f Clear L ake, Clear L ake, Iow a Board action (effective date) Federal Register citation 2 /2 1 /7 5 4 0 F .R . 9 0 0 4 3 /4 /7 5 4 0 F .R . 825 6 2 /2 6 /7 5 4 0 F .R . 11034 3 /1 0 /7 5 2 /1 8 /7 5 2 /2 6 /7 5 Law Department O RDERS UNDER S E C T IO N A P P L IC A T IO N S F O R 3 (a )(3 ) O F B A N K A C Q U IS IT IO N Applicant S E C T IO N TO 4 (c )(8 ) O F B A N K EN G AG E IN D . H . B aldw in C om pany, C incinnati, O hio O RDERS APPRO VED BY TH E SEC R ETA R Y 4 0 F .R . 6 7 2 2 2 /1 3 /7 5 4 0 F .R . 11035 3 /1 0 /7 5 2 /2 6 /7 5 4 0 F .R . 11036 3 /1 0 /7 5 2 /2 4 /7 5 2 /1 8 /7 5 4 0 F .R . 9 0 0 7 3 /4 /7 5 4 0 F .R . 8 257 2 /2 6 /7 5 CO M PANY ACT- A C T IV IT IE S Computer C ongenerics Corporation of Colorado D en ver, C olorado C olum bia Insruance A g en cy , In c ., Lynchburg, V irginia First City L ife Insurance C om pany, H ouston, T exas Fidelity A m erican B ankshares, In c ., L ynchburg, V irginia First C ity B ancorporation of T exas, In c., H ouston, T exas Federal Register citation 2 /2 8 /7 5 H O L D IN G N O N B A N K IN G Nonbanking company (or activity) Applicant AC T— 2 /5 /7 5 Third N ational Bank of Sandusky, Sandusky, O hio T opeka State Bank and Trust C om pany, T opeka, K ansas Gaylord State B ank, G aylord, M ichigan Bank of W y o m in g , Hanna, W yom in g U nited M ichigan Corpora tion, F lint, M ichigan W yom ing B ancorporation, C heyenne, W yom in g O RDERS UNDER Board action (effective date) U n iversity B an k , Fort W orth, T exas T opeka Bank Shares, In c ., T opeka, Kansas CO M PA NY O F B A N K — C o n t. Bank(s) First U nited B ancor poration, In c., Fort W orth, T exas N ational C ity Corporation, C levelan d, O hio A P P L IC A T IO N S H O L D IN G 181 Board action (effective date) Federal Register citation 2 /1 2 /7 5 4 0 F .R . 8 122 2 /2 5 /7 5 2 /2 6 /7 5 4 0 F .R . 11647 3 /1 2 /7 5 2 /2 1 /7 5 4 0 F .R . 9005 3 /4 /7 5 OF TH E BO ARD D uring February 1 9 7 5 , applications w ere approved by the Secretary o f the Board under delegated authority as listed b elo w . The orders have been published in the Federal R egister, and co p ies of the orders are available upon request to Publications S erv ices, D iv isio n o f A dm inistrative S erv ices, Board o f G overnors of the Federal R eserve S ystem , W ashington, D .C . 2 0 5 5 1 . 182 Federal Reserve Bulletin □ March 1975 O RDERS UNDER S E C T IO N A P P L IC A T IO N S F O R 3 (a )(1 ) O F B A N K F O R M A T IO N Applicant O RDERS UND ER Board action (effective date) 3 (a )(3 ) O F B A N K A C Q U IS IT IO N Applicant H O L D IN G APPRO VED BY 4 0 F .R . 11035 3 /1 0 /7 5 4 0 F .R . 700 8 2 /1 8 /7 5 CO M PANY ACT— Board action (effective date) Federal Register citation 2 /3 /7 5 4 0 F .R . 6 3 8 9 2 /1 1 /7 5 4 0 F .R . 6 3 9 0 2 /1 1 /7 5 State Bank o f W illo w Springs, W illo w Springs, M issouri The Jackson C ounty State B ank, Edna, T exas FEDERA L Federal Register citation OF BAN K Bank(s) M ercantile Bancorporation In c ., St. L ou is, M issouri V ictoria B ankshares, In c., V ictoria, T exas ACT- CO M PA NY First State B ank, 2 /2 7 /7 5 G reene, Iow a T he First N ational Bank 2 /1 0 /7 5 o f W ood b in e, W ood b in e, Iow a S E C T IO N A P P L IC A T IO N S F O R C O M PAN Y H O L D IN G Bank(s) G reene Bancorporation, G reene, Iow a W oodbine B ancorp, In c ., W ood b in e, Iow a O RDERS H O L D IN G OF BANK RESERVE 2 /3 /7 5 BAN K S D uring February, 1 975, applications w ere approved by the Federal R eserve B anks under delegated authority as listed b elo w . The orders have b een published in the Federal R egister, and co p ies of the orders are available upon request to the R eserve Bank. O RDER UND ER A P P L IC A T IO N S E C T IO N FO R 3 (a )(3 ) O F B A N K A C Q U IS IT IO N H O L D IN G Sun B anks of Florida, In c., Orlando, Florida P eop les Bank o f Broward C ounty, Tam arac, Florida UNDER S E C T IO N S 3 A N D TO N O N B A N K IN G E dw ardsville B ank-Shares, In c., E dw ards v ille , K ansas BANK 4 OF BANK Bank(s) H O L D IN G H O L D IN G CO M PANY 4 0 F .R . 8 1 2 4 2 /2 5 /7 5 CO M PANY Nonbanking company (or activity) T he E dw ardsville Sale o f credit State B ank, In c ., life and credit E d w ard sville, accident and K ansas health insurance AND ACT— A C T IT IV IE S Applicant FO RM 2 /1 3 /7 5 Federal Register citation Effective date Atlanta Bank(s) A P P L IC A T IO N ACT— Reserve Bank Applicant O RDER CO M PANY OF BANK Reserve Bank ENG A G E IN Effective date Federal Register citation Kansas C ity 2 /1 1 /7 5 4 0 F .R . 8123 2 /2 5 /7 5 183 Announcements C H A N G E C H A N G E IN D IS C O U N T R A TE The Board o f G overnors o f the Federal R eserve System approved actions by the directors o f the Federal R eserve Banks o f B o sto n , N ew Y ork, P hiladelphia, C levelan d , R ich m on d , A tlanta, C h i cago, M in neap olis, K ansas C ity, and San Fran c isc o , reducing the discount rate o f those Banks from 6 3 to 6 X per cen t, effectiv e M arch 10, 1975. A A Subsequently, the Board approved sim ilar actions by the directors o f the Federal R eserve Banks of St. L ouis and D a lla s, effectiv e M arch 14, at w h ich tim e the rate w as 6 lA per cent at all R eserve B anks. T he action w as taken in v iew o f the w eakness in econ om ic activity and the recent ev id en ce of m oderation in the rate o f inflation, and also to bring the discount rate into better alignm ent w ith other short-term interest rates. The discount rate is the interest rate charged m em ber com m ercial banks for borrow ing from their district Federal R eserve B anks. PR O PO SE D T O L E G IS L A T IO N R E G U L A T E F O R E IG N B A N K IN G The Board o f G overnors on March 4 , 1975, re subm itted to the C ongress its proposed legislation to regulate foreign banking in the U nited States. The legislation , w hich w as first introduced in the C ongress late last year, is d esign ed to standardize the status o f foreign banks in the U nited States by placing them under the sam e basic rules and procedures that m ust be observed by dom estic banks. R E V IS E D O T C ST O C K L IS T The Board o f G overnors announced several ch an ges, effective February 2 4 , 1975, in its “ List o f OTC M argin S to c k s” that w as issued in revised form on July 2 9 , 1974. The revised list is available from P ublications S erv ice s, D iv isio n o f A d m in is trative S ervices, Board o f G overnors o f the Federal R eserve S ystem , W ashington, D .C . 2 0 5 5 1 . IN B O A R D ST A FF T he Board o f G overnors announced the fo llo w in g change in its official staff, effectiv e March 17, 1975: Robert S'. Plotkin from A sso cia te Program D irector for Bank H old in g C om pany A n a ly sis, O ffice of M anaging D irector for O perations, to A ssistant D irector, Office o f Saver and C onsum er A ffairs. IN T R O D U C T IO N FL O W O F T O FU N D S A C C O U N T S A revised description o f flow o f funds accounts is now available. T his publication co n sists o f the 5 3 -page introductory text on purposes, nature, and structure o f flow of funds accounts that w as pub lished w ith annual tables in 1968 and again in 1970. This version o f the text has been updated in terms o f charts and definitions w ith the S ep tember 1974 revision o f the accounts. It does not include the tables th em selv es, w hich are available as annual data on request w ithout charge, nor d oes it include the detailed description o f derivation m ethods. The price o f the revised publication is $ .5 0 a copy; in quantities o f 10 or m ore sent to one address, $ .4 0 each. C op ies m ay be obtained from P ublications S erv ices, D iv isio n o f A dm inistrative S erv ices, Board o f G overnors of the Federal R e serve S ystem , W ash in gton , D .C . 2 0 5 5 1 . A D M IS S IO N O F M E M B E R S H IP FE D E R A L IN ST A T E B A N K S TO T H E R E SE R V E SY ST E M The fo llo w in g banks w ere admitted to m em bership in the Federal R eserve System during the period February 16, 1975, through M arch 15, 1975: Florida P ensacola ..................................... First N avy Bank N ew York B ingham ton .. C hem ical Bank o f B ingham ton Tennessee M e m p h is ......................... C om m erce U n ion Bank o f M em phis 185 Industrial Production Released for publication March 14 as the reduction in output o f products, su ggestin g a substantial liquidation o f m aterials inventories. Industrial production declin ed an estim ated 3 .0 per cent further in February, bringing the total index to 110.3 per cent o f the 1967 average— 12.2 per cent b elow the Septem ber 1974 lev e l. Cutbacks in output continued to be w idespread am ong c o n sumer g o o d s, bu sin ess equipm ent, construction products, and industrial m aterials. A t an annual rate of 4 .6 m illion units, auto assem blies w ere dow n 4 per cent from January and 30 per cent b elo w a year earlier. U nit sales exceed ed production in both February and Jan uary, and stocks o f new autos w ere reduced co n siderably. A uto assem b lies are currently scheduled to increase in M arch. Production of other durable and nondurable consum er good s also continued to d eclin e in February. B u sin ess equipm ent output w as reduced 2Vi per cent further and w as alm ost 10 per cent b elow the high reached last autumn. P roduction o f industrial m aterials declined fur ther, as output w as again curtailed in consum er durable parts, equipm ent parts, other durable m a terials, and textiles, paper, and ch em icals. Pro duction cuts in these industries have totaled 18 per cent sin ce last autumn. T his is tw ice as m uch INDUSTRIAL PRODUCTION Seasonally adjusted, ratio scale, 1967=100 F .R . in d ex es, seaso n ally adju sted . L atest figures: F eb ru ary . * A u to sales and stocks include im ports. S easo n ally ad justed 1967 = 100 In d u strial p ro d u ctio n 1974 P er cent changes fro m — P er cent ch an g e s, annual rate 1975 1974 M onth ago Y ear ago D ec. Jan .* F e b .e T o ta l .......................................................... P ro d u cts, total .................................................. Final pro d u cts ............................................... C o n su m er g o ods ..................................... D u rab le g o ods ................................... N o n d u rab le g o ods ........................... B u sin ess eq u ip m e n t ............................. 11 7 .7 118.5 118.1 123.2 110.5 128.1 127.2 1 13.7 115.7 115.0 120.1 105.4 125.6 122.5 1 1 0 .3 113.0 112.5 117.9 101.0 124.4 119.4 -3 .0 -2 .3 - 2 .2 - 1 .8 -4 .2 -1 .0 - 2 .5 -1 1 .5 - 7 .7 - 6 .7 - 8.1 -2 0 .1 - 3 .6 - 6 .2 In te rm ed ia te p ro d u c ts ............................... C o n stru ctio n p ro d u cts ......................... M aterials .............................................................. 120.1 118.5 116.3 118.4 117.2 110.4 115.1 112.0 106.2 - 2 .8 -4 .4 - 3 .8 -1 0 .8 - 1 4 .7 -1 7 .2 - pPreliminary. eEstimated. Q2 Q3 Q4 1.9 2 .6 3 .0 2.5 14.7 - 2 .2 7 .2 - .3 .6 2 .0 0 -4 .5 2 .2 4 .0 -1 2 .8 - 9.1 - 6 .9 -1 1 .1 - 3 6 .7 - 1.5 - 2 .4 1.2 2 .7 .3 -3 .7 -7 .7 - .9 -1 6 .3 -2 1 .3 - 1 9 .9 A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 A A A A A A A 7 8 9 10 11 12 13 Member bank reserves, Federal Reserve Bank credit, and related items Federal funds—Major reserve city banks Reserve Bank interest rates Reserve requirements Maximum interest rates; margin requirements Open market account Federal Reserve Banks Bank debits A A A A A A A A A A A A 14 15 16 20 25 26 27 27 28 31 32 32 Money stock Bank reserves; bank credit Commercial banks, by classes Weekly reporting banks Business loans of banks Demand deposit ownership Loan sales by banks Open market paper Interest rates Security markets Stock market credit Savings institutions A A A A A A A 34 36 39 40 43 44 47 Federal finance U.S. Government securities Federally sponsored credit agencies Security issues Business finance Real estate credit Consumer credit Continued on next page A 2 Federal Reserve Bulletin □ March 1975 U.S. STATISTICS—Continued A A A A A A A A 50 52 52 54 55 55 56 58 Industrial production Business activity Construction Labor force, employment, and unemployment Consumer prices Wholesale prices National product and income Flow of funds INTERNATIONAL STATISTICS: A A A A A A A A A 60 61 61 62 63 76 77 77 78 U.S. balance of payments Foreign trade U.S. reserve assets U.S. gold transactions International capital transactions of the United States Open market rates Central bank rates Foreign exchange rates Gold reserves of central banks and governments TABLES PUBLISHED PERIODICALLY: A 79 A 80 A 82 A 83 A 90 Banking and monetary statistics, 1974: Reserves and borrowings of member banks Member bank reserves, Federal Reserve Bank credit, and related items Loans sold outright by commercial banks Sales, revenue, profits, and dividends of large manufac turing corporations INDEX TO STATISTICAL TABLES A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e E stim ated c C orrected P r P relim inary N .S .A . IPC SM SA A L S U * R ev ised R ev ised prelim inary rP I, II, III, IV Quarters n .e .c . N o t elsew h ere classified A .R . A nnual rate S .A . M o n th ly (or quarterly) figures adjusted for sea so n al variation M on th ly (or quarterly) figures not adjusted for season al variation In d iv id u a ls, partnerships, and corporations Standard m etropolitan statistical area A ssets L iab ilities S ou rces o f funds U s e s o f funds A m ou n ts in sign ificant in term s o f the par ticular unit ( e .g ., le ss than 5 0 0 ,0 0 0 w h en the unit is m illio n s) (1) Z ero, (2 ) n o figure to be e x p e c te d , or (3 ) figure d elayed GENERAL INFORMATION M in u s sig n s are u sed to in d icate (1) a d ecrea se, (2) a n eg a tiv e figure, or (3) an ou tflow . A h ea v y vertical rule is u sed in the fo llo w in g in stances: (1 ) to the right (to the left) o f a total w h en the co m p o n en ts sh o w n to the right (left) o f it add to that total (totals separated b y ordinary rules in clu d e m ore co m p o n en ts than th ose sh o w n ), (2) to the right (to the left) o f item s that are not part o f a balance sh eet, (3 ) to the left o f m em orandum item s. “ U .S . G o v t, se cu rities” m ay in clu d e guaranteed issu es o f U .S . G o v t, a g en cies (the flow o f funds figures also in clu d e not fu lly guaranteed issu es) as w e ll as direct o b ligation s o f the T reasury. “ State and local g o v t .” also in clu d es m u n icip a litie s, sp ecial d istricts, and other p olitical su b d iv isio n s. In so m e o f the tables d etails d o not add to totals b e cau se o f rounding. T h e foo tn o tes lab eled N o t e (w h ich a lw a y s appear last) p rovid e (1) the sou rce or sou rces o f data that do not originate in the S ystem ; (2) n otice w h en figures are estim ates; and (3 ) in form ation on other charac teristics o f the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Q uarterly Issue Sales, revenue, profits, and divi dends of large manufacturing corporations ................................ Mar. 1975 Page Issue Page Banks and branches, number, by class and State .................... Apr. 1974 A-88— A-89 Flow of funds: Assets and liabilities: 1962-73 .................................. Oct. 1974 A -59.14—A-59.28 Oct. 1974 A-58—A -59.13 A-83 Semiannually Banking offices: Analysis of changes in number On, and not on, Federal Reserve Par List, number ................... Annually— Continued Feb. 1975 A-82 Feb. 1975 A-83 Flows: 1965-73 .................................. June 1974 July 1974 A-80—A-83 530 Feb. 1975 June 1974 A-80— A-81 A-84— A-85 1974 1974 1975 1975 A-96— A -109 A-80— A-82 A-84— A-85 A-79— A-82 Income and expenses: Federal Reserve Banks ............ Insured commercial banks ....... Member banks: Calendar year .......................... Income ratios .......................... Operating ratios .................... June 1974 June 1974 Sept. 1974 A-84— A-93 A-94— A-99 A-80— A-85 Stock market credit ........................ Feb. 1975 A-86—A-87 Annually Bank holding companies: Banking offices and deposits of group banks, Dec. 31, 1973 Banking and monetary statistics: 1974 Mar. July Feb. Mar. Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Anticipated schedule of release dates for individual releases ........................................................................................ Page Dec. 1974 A-86 A 4 BANK RESERVES AND RELATED ITEMS □ MARCH 1975 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities 1 Total Bought out right 2 Held under repur chase agree ment Loans Float 3 Other F.R. assets 4 83 170 652 1,117 1,665 Total ^ Gold stock Special Drawing Rights certificate account Treas ury cur rency out stand ing Averages of daily figures 1939—Dec.............................. 1941—Dec.............................. 1945—Dec............................. 1950—Dec............................. 1960—Dec.............................. 2,510 2,219 23,708 20,345 27,248 2,510 2,219 23,708 20,336 27,170 9 78 8 5 381 142 94 2,612 2,404 24,744 21,606 29,060 17,518 22,759 20,047 22,879 17,954 1969—Dec.............................. 1970—Dec............................... 1971—Dec............................... 1972—Dec............................... 1973—Dec............................... 57,500 61,688 69,158 71,094 79,701 57,295 61,310 68,868 70,790 78,833 205 378 290 304 868 1,086 321 107 1,049 1,298 3,235 3,570 3,905 3,479 3,414 2,204 1,032 982 1,138 1,079 64,100 66,708 74,255 76,851 85,642 10,367 11,105 10,132 10,410 11,567 400 400 400 400 6,841 7,145 7,611 8,293 8,668 1974—Feb............................... Mar.............................. Apr............................... M ay............................. June................... .. July............................... Aue.............................. Oct................................ Nov.............................. Dec............................... 80,801 80,686 81,567 83,434 82,812 84,313 84,493 84,384 83,735 84,052 86,679 80,551 80,184 80,873 82,037 81,859 83,496 84,221 84,049 83,303 83,395 85,202 250 502 694 1,397 953 817 272 335 432 657 1,477 1,186 1,352 1,714 2,580 3,000 3,308 3,351 3,287 1,793 1,285 703 2,300 1,816 2,295 2,025 2,114 2,267 1,983 2,239 2,083 2,409 2,734 1,117 960 1,160 1,093 1,106 1,343 1,258 1,349 2,984 3,171 3,129 85,493 84,943 86,907 89,405 89,254 91,554 91,367 91,617 90,971 91,302 93,967 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,630 400 400 400 400 400 400 400 400 400 400 400 8,747 8,767 8,807 8,838 8,877 8,905 8,951 8,992 9,041 9,113 9,179 1975—Jan................................ Feb .p ........................... 86,039 84,744 85,369 83,843 670 901 390 147 2,456 1,918 3,391 3,419 93,002 91,007 11,647 11,626 400 400 9,235 9,284 2,956 3,239 4,322 4,629 5,396 Week ending— 1974—Dec. 4 ....................... 11....................... 18....................... 25....................... 85,559 85,445 85,842 88,242 83,967 84,925 85,157 85,761 1,592 520 685 2,481 1,070 648 818 662 2,768 2,545 2,569 2,285 3,113 3,053 3,047 3,141 93,186 92,238 92,859 95,124 11,567 11,603 11,652 11,652 400 400 400 400 9,168 9,163 9,178 9,194 1975—Jan. 1....................... 8....................... 15....................... 22....................... 29....................... 87,903 86,317 85,520 86,105 86,341 85,746 85,587 85,381 85,191 85,448 2,157 730 139 914 893 561 311 609 594 142 3,261 3,439 2,601 2,101 1,978 3,205 3,291 3,309 3,443 3,490 95,962 94,058 92,672 92,757 92,742 11,652 11,652 11,652 11,652 11,635 400 400 400 400 400 9,221 9,216 9,235 9,239 9,246 Feb. 5....................... 12....................... 19*..................... 26*..................... 85,613 83,801 84,255 85,376 84,999 83,111 83,357 84,148 614 690 898 1,228 98 90 228 180 2,128 1,987 2,031 2,304 3,839 3,680 3,396 2,933 92,509 90,301 90,670 91,576 11,634 11,628 11,624 11,621 400 400 400 400 9,267 9,271 9,276 9,303 1974—Dec............................... 85,714 84,760 954 299 2,001 3,195 92,208 11,652 400 9,253 1975—Jan................................ Feb.*........................... 86,134 86,416 85,076 84,152 1,058 2,264 103 77 1,466 1,256 3,518 3,005 92,187 91,747 11,635 11,621 400 400 9,305 9,334 End of month Wednesday 1974—Dec. 4 ....................... 11....................... 18....................... 25....................... 82,271 86,187 87,967 89,258 81,447 84,878 85,679 85,985 824 1,309 2,288 3,273 315 1,159 1,384 426 2,927 3,077 3,117 2,463 2,947 3,047 3,248 3,154 89,068 94,204 96,433 96,164 11,567 11,652 11,652 11,652 400 400 400 400 9,141 9,170 9,184 9,208 1975—Jan. 1..................... . 8....................... 15....................... 22....................... 29....................... 85,714 82,726 85,176 89,306 86,305 84,760 82,726 85,048 85,325 85,141 954 299 126 2,893 2,444 159 2,001 3,168 2,865 2,537 2,638 3,195 3,460 3,493 3,928 3,598 92,208 90,074 95,097 99,198 93,579 11,652 11,652 11,652 11,652 11,635 400 400 400 400 400 9,253 9,235 9,237 9,242 9,264 5....................... 12....................... 19*>..................... 26*..................... 83,909 86,154 83,976 86,886 83,909 83,741 83,976 84,121 89 117 1,125 834 5,302 2,387 2,302 2,381 4,665 3,580 2,984 2,740 94,632 93,180 91,023 93,720 11,629 11,625 11,621 11,621 400 400 400 400 9,270 9,275 9,281 9,334 Feb. 128 3,981 1,164 2,413 2,765 1 Includes Federal agency issues held under repurchase agreements beginning Dec. 1, 1966, and Federal agency issues bought outright be ginning Sept. 29, 1971. 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. Govt, securities pledged with F.R. Banks, and excludes (if any), securities sold and scheduled to be bought back under matched sale-purchase transactions. 3 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 B u l l e t i n , p. 164. 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. liabilities and capital” are shown separately; formerly, they were netted together and reported as “Other F.R. accounts.” ^Includes industrial loans and acceptances until Aug. 21, 1959, when loan program was discontinued. For holdings of acceptances industrial on Wed. and end-of-month dates, see table on F.R. Banks on p. A-12. See also note 3. 6 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in full with F.R. Banks in connection with voluntary participation by nonmember institutions in the Federal Reserve System’s program of credit restraint. As of Dec. 12, 1974, the amount of voluntary nonmember and foreign agency and branch deposits at F.R. Banks that are associated with margi nal reserves are no longer reported. However, deposits voluntarily held by agencies and branches of foreign banks operating in the United States as reserves and Euro-dollar liabilities are reported. Notes continued on opposite page. MARCH 1975 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions o f dollars) Factors absorbing reserve funds Cur rency in cir cula Deposits, other than member bank reserves, with F.R. Banks tion Treas ury cash hold ings 7,609 10,985 28,452 27,806 33,019 2,402 2,189 2,269 1,290 408 616 592 625 615 522 53,591 57,013 61,060 66,060 71,646 656 427 453 350 323 70,411 71,081 72,176 72,876 73,749 74,556 74,709 75,098 75,654 77,029 78,951 Treas ury For eign Other F.R. ac counts4 Other 3,6 Other F.R. lia bilities and capital4 Member bank reserves With F.R. Banks Period or date Cur rency and coin7 Averages of daily figures 248 292 493 739 1,029 2,595 11,473 12,812 16,027 17,391 19,283 .1939—Dec. . 1941—Dec. . 1945—Dec. .1950—Dec. . 1960—Dec. 4,960 5,340 5,676 6,095 6,635 28,031 29,265 31,329 31,353 35,068 .1969—Dec. .1970—Dec. .1971—Dec. .1972—Dec. .1973—Dec. 28,574 28,450 29,469 29,861 29,672 30,514 30,264 30,156 29,985 29,898 29,767 6,601 6,450 6,402 6,600 6,668 6,824 6,765 6,920 6,811 6,939 7,174 35,242 34,966 35,929 36,519 36,390 37,338 37,029 37,076 36,796 36,837 36,941 . 1974—Feb. ............Mar. ............Apr. ............May ............ June ............July ............Aug. ............Sept. ............Oct. ............Nov. ............Dec. 3,264 3,358 29,713 28,342 7,779 7,067 37,492 35,409 . 1975—Jan. ............Feb.* 1,024 893 821 752 3.250 3; 090 3,213 3,399 29,861 29,035 29,615 29,855 7,100 7,258 7,147 6,990 36,961 36,293 36,762 36,845 . 1974—Dec. 4 ...................... 11 ..................... 18 ..................... 25 333 324 446 279 272 896 986 901 828 798 3,339 3,071 3,194 3,366 3,395 30,218 29,981 29,652 30,482 29,635 7,370 7,331 8,555 7,783 7,605 37,588 37,312 38,207 38,265 37,240 . 1975—Jan. 2,634 1,492 1,960 3,489 342 270 364 300 848 634 612 703 3,741 3,342 3,162 3,239 29,543 28,573 28,341 27,963 7,431 7,456 6,820 6,671 36,974 36,029 35,161 34,634 185 3,113 418 1,275 2,935 25,843 7,370 33,213 76,343 76,840 250 212 3,540 2,884 391 409 748 901 3,415 3,326 28,839 28,530 7,431 6,946 36,270 35,476 78,349 79,009 79,293 79,842 323 207 192 183 1,568 690 2,209 2,671 411 358 266 450 841 924 816 775 3,211 3,149 3,332 3,463 25,473 31,089 31,562 30,040 7,100 7,258 7,147 6,990 32,573 38,347 38,709 37,030 . 1974—Dec. 4 ..................... 11 ..................... 18 ..................... 25 79,743 78,710 77,946 77,136 76,638 185 235 240 261 261 3,113 741 1,366 1,857 3,442 418 381 950 230 334 1,275 766 731 906 708 2,935 3,058 3.232 3,618 3,446 25,843 27,470 31,922 36,484 30,049 7,370 7,331 8,555 7,783 7,605 33,213 34,801 40,477 44,267 37,654 . 1975—Jan. 76,860 77,493 77,408 77,078 249 236 230 212 779 1,308 3,040 3,187 277 250 319 271 732 683 700 851 4,859 3,174 3.232 3,229 32,175 31,336 27,396 30,247 7,431 7,456 6,820 6,671 39,606 38,792 34,216 36,918 .Feb. 739 1,531 1,247 920 250 353 495 1,194 849 1.926 1,449 1,892 146 145 290 272 406 458 735 728 631 717 342 334 308 286 293 275 283 303 315 302 220 2,972 1,803 1,712 3,000 2,015 2,795 2,633 2,451 1,601 864 1,741 293 311 328 320 491 296 326 456 294 370 357 77,780 76,979 221 236 2,087 2,374 77,952 78,496 78,926 79,368 316 266 182 180 79,655 78,922 78,191 77,431 76,666 11,473 12,812 16,027 17,391 16,688 2,192 2.265 2,287 2,362 2,942 23,071 23,925 25,653 24,830 28,352 682 699 702 699 691 773 831 766 869 770 874 2,932 2,998 2,985 3,168 3,187 3,216 3,240 3,345 3,260 3,149 3.266 336 317 884 711 1,464 1,303 926 2,471 453 320 407 345 189 192 226 244 252 2,606 1,850 1,352 1,618 3,005 76,456 77,052 77,298 76,993 246 239 234 212 79,743 Week ending— 1 .15 .22 .29 . Feb. 5 ..........12 ..........19* ..........26* End of month ............... 1974—Dec. . 1975—Jan. ............Feb. J W ednesday 7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed thereafter. Beginning Jan. 1963, figures are estimated except for weekly averages. Beginning Sept. 12, 1968, amount is based on close-of-business figures for reserve period 2 weeks previous to report date. 8 Beginning with week ending Nov. 15, 1972, includes $450 million of reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J 1 .15 .22 .29 5 12 19* 26* as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week of quarter): Ql, $279 million; Q2, $172 million; Q3, $112 million; Q4, $84 million. B eg in n in g 1974, Ql, $67 million, Q2, $58 million. Transition period ended after second quarter, 1974. For other notes see opposite page. AND RELATED ITEMS a MARCH 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions o f dollars) Large banks 2 All member banks Borrowings Reserves New York City City of Chicago Excess Borrow ings Excess Borrow ings Re quired Excess1 6,462 9,422 14,536 16,364 5,011 3,390 1,491 1,027 3 5 334 142 2,611 989 48 125 192 58 540 295 14 8 18,527 22,267 756 452 87 454 29 41 19 111 4 15 24,915 26,766 27,774 28,993 31,164 345 455 257 272 165 238 765 1,086 321 107 18 100 56 34 25 40 230 259 25 35 31,134 34,806 219 262 1,049 1,298 41 -2 0 -2 3 35,053 34,790 35,771 36,325 36,259 37,161 36,851 36,885 36,705 36,579 36,602 189 176 158 194 131 177 178 191 91 258 339 1,352 1,714 2,580 3,000 3,308 3,351 3,287 1,793 1,285 703 1,186 17 32 50 102 130 149 165 139 117 67 32 37,556 35,348 -6 4 61 390 147 35,351 35,054 35,274 34,645 124 294 114 206 998 1,153 1,376 36,692 36,823 36,947 36,920 Total Sea sonal Other Excess TOW- 5 1,188 1,303 418 232 3 4 46 29 8 23 100 67 40 92 8 15 18 7 1 13 85 27 4 8 50 90 6 42 -3 5 80 180 321 28 42 301 74 13 43 55 28 -4 2 28 264 435 51 21 19 -2 0 -2 6 45 -5 8 133 -4 9 -8 132 87 113 114 772 1,303 1,457 1,464 1,662 502 257 80 -1 9 -6 1 69 29 -8 19 6 20 -1 8 38 5 18 65 41 20 51 70 23 17 36 -5 1 43 -5 8 -4 26 -1 2 78 -7 7 36 90 39 446 485 572 849 847 933 ,004 816 686 448 282 13 11 -119 -31 156 35 -1 6 21 16 10 -91 -7 7 131 73 -123 144 -3 7 70 92 257 14 -2 3 -6 3 -1 7 56 1,251 18 15 20 16 13 34 -3 4 -4 2 -2 4 504 420 408 458 228 113 209 146 3,089 3,041 3,437 3,533 174 160 167 161 -7 20 -3 2 105 1,420 1,431 1,447 1,457 9 8 -2 31 24 24 23 21 54 -3 9 130 -9 8 ,001 870 ,006 ,104 36,918 36,628 37,004 36,872 321 109 82 74 3,906 3,084 2,921 3,531 152 132 134 141 -6 6 127 -1 5 0 80 1,729 1,567 1,517 1,782 40 -3 5 15 12 19 20 16 10 171 -1 1 0 90 -9 3 ,033 731 648 868 37,077 36,656 37,088 36,615 36,576 456 -5 5 327 -159 243 3,218 2,245 1,744 1,322 1,638 143 132 121 108 105 67 -2 6 41 -101 109 1,756 1,245 219 148 96 9 -2 0 27 -1 2 -9 17 10 135 2 11 222 -127 99 -122 42 913 654 606 663 801 36,672 36,335 36,785 36,459 323 144 27 310 1,125 1,097 1,367 1,479 78 70 64 63 54 -1 5 -1 6 69 68 188 465 243 32 -2 9 8 27 30 29 105 40 -8 7 87 632 399 378 422 36,678 36,452 36,545 36,416 283 -159 217 429 1,070 648 818 662 51 35 31 29 141 -173 59 137 226 73 60 72 4 -3 6 23 52 26 54 -1 6 -5 0 -3 9 89 394 268 287 257 37,011 37,175 38,249 38,079 37,066 577 137 -4 2 186 174 561 311 609 594 142 24 18 12 12 10 -8 55 -130 29 71 83 36 317 328 61 -2 7 1 1 -1 3 69 223 -2 6 -8 9 45 -2 4 260 168 115 136 109 36,579 35,970 34,958 34,457 395 59 203 177 98 90 228 180 11 10 12 11 133 -3 7 -104 -8 8 6 140 33 -2 0 -2 9 44 84 -5 241 -5 5 86 69 70 70 tov. 15, 1972, includes $450 million of Banks are allowed to waive penalties n with bank adaptation to Regulation J Beginning 1973, allowable deficiencies statement week of quarter): Q l, $279 12 million; Q4, $84 million. Beginning lillion. Transition period ended after > which figures are preliminary, figures r total because adjusted data by class are nation of banks as reserve city banks li 39 for reserve-requirement purposes has been demand deposits of more than $400 million), for July 1972, p. 626. Categories shown here parallel the previous “Reserve city” and “Coui (hence the series are continuous over time). N o t e .—Monthly and weekly data are avei the month or week, respectively. Borrowings at F.R. Banks: Based on closinj Effective Apr. 19, 1963, the Board’s Regula ing by F.R. Banks, was revised to assist s i m the seasonal borrowing needs of their commu ngs (net Uetin :her” ively ithin [end- MARCH 1975 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions o f dollars, except as noted) Less— Reporting banks and week ending— Excess Net inter Bor rowings bank at F.R. Federal Banks funds trans. Related transactions with U.S. Govt, securities dealers Interbank Federal funds transactions Basic reserve position Gross transactions N e tPer cent of Surplus avg. or deficit required reserves Pur chases Sales Net transactions Total two-way Pur trans chases actions 2 of net buying banks Sales of net selling banks Loans to dealers 3 Bor row ings from dealers4 Net loans Total— 46 ban ks 15. 22. 29. Feb. 271 136 -9 1 -1 1 4 185 76 330 244 13,872 15,609 15,890 15,213 13,212 -13,786 -15,550 -16,310 -15,468 -13,216 78.6 87.9 88.6 84.7 74.9 20,142 21,570 21,062 20,563 19,233 6,270 5,961 5,172 5,350 6,021 5,124 5,239 4,854 4,812 5,319 15,018 16,330 16,208 15,752 13,915 1,146 722 318 538 703 3,042 3,278 3,121 2,584 2,548 538 565 604 860 919 2,505 2,713 2,516 1,724 1,629 5. 12. 19. 26. 177 52 -41 -1 0 5 142 74 14,481 -14,305 16,260 -16,213 16,440 -16,623 15,742 15,826 82.2 94.9 100.2 98.2 20,952 22,136 23,568 21,864 6,470 5,876 7,128 6,122 5,631 5,155 5,949 5,204 15,321 16,982 17,61" 16,661 839 722 1 ,179 91 2,800 3,635 2,727 2,977 809 ,000 932 878 1,991 2,635 1,795 2,100 15. 22. 29. 1975—Jan. 67 72 -7 0 -4 7 -2 8 206 203 4,816 5,289 5,358 5,603 4,685 -4,771 -5,218 -5,633 -5,853 -4,713 64.7 69.7 72. 75.3 63.5 5,994 6,483 6,401 6,376 6,004 1,178 1,193 1,043 773 1,319 1,178 1,194 1,643 773 1,320 4,816 5,289 5,358 5,603 4,684 1,193 1,459 1,388 1,197 1,269 270 291 350 365 427 923 1,167 1.037 832 842 5. 12. 19. 26. 56 34 1 -41 5,708 7,172 6,305 5,825 -5 ,6 5 2 -7,1 3 8 -6,4 3 9 5,886 77.5 100.3 92.1 6,985 7,883 7,697 6,894 1,277 711 1,392 1,069 1,277 710 1,393 1,069 5,708 7,172 6,305 5,825 1,433 1,551 1,331 1,579 473 610 610 541 960 942 721 1.038 9,056 10,320 10,532 9,610 8,528 -9 ,0 1 6 -10,332 -10,677 -9 ,6 1 6 -8 ,5 0 4 88.6 101.3 100.1 91.7 83.1 14,148 15,087 14,662 14,187 13,229 5,092 4,768 4,130 4,577 4,702 5,092 4,046 3,812 4,039 3,999 10,202 11,041 10,850 10,148 9,230 1,146 722 318 538 703 1,850 1,820 1,733 1,386 1,279 268 274 254 495 492 1,582 1,546 1,479 891 787 8,773 -8,653 9,088 -9 ,0 7 4 10,135 -10,184 9,917 -9,961 85.6 91.1 106.1 104.7 13,967 13,254 15,870 14,971 5,193 5,166 5,736 5,053 4,354 4,444 4,557 4,135 9,613 9,809 11,314 10,836 839 722 1,179 918 1,368 2,084 1 ,396 1,398 336 391 322 336 1,031 1,694 1,074 1,062 1........ 8 in N ew York C ity 1975—Jan. Feb. 1.......... 21 38 outside N ew York C ity 1975—Jan. 1. 8. 15. 22. 29. 204 64 -21 36 32 164 76 124 41 121 19 -4 2 30 Feb. 5 in C ity o f Chicago 1975—Jan. -2 -1 4 3,408 3,993 4,031 3,405 3,384 -3,309 -4,013 -4,099 -3,407 -3,397 173.0 206.4 198.7 171. 177.5 4,202 4,796 4,722 4,284 4,214 795 802 691 879 830 795 803 691 879 831 3,408 3,993 4,031 3,406 3,384 287 329 294 296 352 287 329 294 296 352 34 3 -2 6 16 3,727 3,500 4,742 3,978 -3,693 -3,497 -4,767 -4,002 193.3 183.4 261.9 223.6 4,573 4,264 5,639 4,781 846 765 897 805 846 765 897 803 3,727 3,500 4,742 3,978 354 304 300 254 354 304 300 254 5,648 6,326 6,501 6,205 5,144 -5,707 -6,319 -6,578 -6,209 -5,106 69.1 76.6 76.4 73.0 61.4 9,945 10,291 9,940 9,903 9,015 4,297 3,965 3,439 3,699 3,871 3,151 3,243 3,121 3,160 3,169 6,794 7,048 6,819 6,743 5,847 1,146 722 318 538 703 1,563 1,491 1,439 1,090 927 268 274 254 495 492 1,295 1,217 1,185 595 435 5,046 5,589 5,393 5,939 -4,960 -5,577 -5,416 -5,959 60.5 69.2 69.7 77.2 9,394 9,990 10,232 10,190 4,348 4,401 4,838 4,251 3,508 3,680 3,660 3,352 5,885 6,310 6,572 6,857 839 722 1,179 918 1,013 1,780 1,096 1,144 336 391 322 336 677 1,390 774 808 1 ........... 15. 22. 29. 5. 12. 19. 26. 68 39 33 others 1975—Jan. Feb. 1. 8. 15. 22. 29. 105 83 -2 1 34 46 5. 12............ 19............ 2 6 ............ 87 16 -1 6 15 164 76 56 41 1 Based upon reserve balances, including all adjustments applicable to the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, if any, were deducted. Excess reserves for later periods are net of all carry over reserves. 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank’s weekly average pur chases and sales are offsetting. 3 Federal funds loaned, net funds supplied to each dealer by clearing banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. 4 Federal funds borrowed, net funds acquired from each dealer by clearing banks, reverse repurchase agreements (sales of securities to dealers subject to repurchase), resale agreements, and borrowings secured by Govt, or other issues. N o t e . —Weekly averages of daily figures. For description of series and back data, see Aug. 1964 B u l l e t i n , pp. 944-74. A 8 F.R. BANK INTEREST RATES □ MARCH 1975 CURRENT RATES (Per cent per annum) Loans to member banks— Under S< . 10(b) 2 jc Under Secs. 13 and 13a1 Regular rate Federal Reserve Bank Rate on 2/28/75 Effective Previous date rate Rate on 2/28/75 Special rate Effective Previous date rate Boston................... New Y ork............. Philadelphia.......... Cleveland............... Richmond.............. Atlanta................... 634 634 634 634 ■ 634 634 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 714 714 714 714 714 71/4 714 714 714 714 71/4 71/4 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 Chicago................. St. Louis................ Minneapolis.......... Kansas City........... Dallas..................... San Francisco........ 634 634 634 634 634 634 2/6/75 2/7/75 2/5/75 2/7/75 2/5/75 2/5/75 714 71/4 714 71/4 714 714 714 71/4 71/4 714 714 714 2/6/75 2/7/75 2/5/75 2/7/75 2/5/75 2/5/75 Rate on 2/28/75 734 734 734 734 734 73/4 734 734 734 734 734 734 1 Discounts of eligible paper and advances secured by such paper or by U.S. Govt, obligations or any other obligations eligible for F.R. Bank purchase. 2 Advances secured to the satisfaction of the F.R. Bank. Advances secured by mortgages on 1- to 4-family residential property are made at the Section 13 rate. Loans to all others under last par. Sec. 13 4 3 Effective Previous date 3 rate 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 8Vi 8 Vi 81/2 81/2 81/2 81/2 81/2 8i/i 81/2 81/2 9 9 9 9 9 9 2/6/75 2/7/75 2/5/75 2/7/75 2/5/75 2/5/75 81/2 81/2 9 9 9 9 9 9 Rate on 2/28/75 Effective date Previous rate 9i/i 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 2/5/75 10 2/6/75 2/7/75 2/5/75 2/7/75 2/5/75 2/5/75 10 10 10 10 10 10 91/2 91/2 9i/i 91/2 9Vi 9Vi 91/2 91/2 9^ 91/2 91/2 10 10 10 10 10 3 Applicable to special advances described in Section 201.2(e)(2) of Regulation A. 4 Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of, or obligations fully guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Effective date Range (or level)— All F.R. Banks F.R. Bank of N.Y. Effective date 21/2 2 Vi 1956—Apr. 13.................... 20.................... 2 Vi-3 234-3 234-3 3 234 234 3 3 3 -314 31/2 3 -3V4 3 3 3*i 3 3 234-3 234-3 214-3 214-234 3 23/4 214 214 Apr. 21/4 21/4 Dec. 21/2 l3 4 13 4 13 4 2 2 2 2Vi 21/2-3 3 3 -3Vi 3Vi 31/2-4 4 3Vi-4 31/2-4 31/2 3 -31/2 3 3 - 31/2 31/2 3 3 3Vi 3Vi 4 4 4 31/2 31/i 3 3 3Vi 3Vi 1957—Aug. 9.................... 23.................... Nov. 15.................... 1958—Jan. 22.................... 24.................... Mar. 7.................... 13.................... 21.................... Apr. 18.................... 23.................... Oct. 24.................... Nov. 7.................... 1959—Mar. 6.................... 16.................... June 12.................... Sept. 11.................... 18.................... 1960—June 3.................... 10................... 14................... Sept. 9 ................... 1963—July 17................... 26................... 134-21/4 l3 4 l 3 -2 4 1*4-2 2 2 - 21/2 1965—Dec. 1967—Apr. Nov. 1968—Mar. Aug. 1969—Apr. 6. 13. 7. 14. 20. 27. 15. 22. 19. 26. 16. 30. 18. 20. 4. 31/2-4 4 4 4 4 -4i/2 4% 41/2 4 - 41/2 4 4 - 41/2 41/2 41/2-5 41/2 5 5 - 51/2 51/2 5*4-5Vi 514 514-51/2 5 Vi 51/2-6 6 4 4 4% 41/2 41h. 5 5 Vi 51/2 51/2 514 51h 51/2 6 6 1970—Nov. 11. 13. 16. Dec. 1. 4. 11. 534-6 5%-6 534 51/2-53/4 51/2-53/4 51/2 6 534 534 534 5 Vi 1971—Jan. 51/4 - 51/2 51/4 51/4 51/4 5 5 5 434 5 5 15. 19. 22. 29. Feb. 13. 19. July 16. 23. N o t e .—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. F.R. Bank of N.Y. 1964—Nov. 24. 30. In effect Dec. 31, 1955....... 31.................... Range (or level)— All F.R Banks 51/4 5 -514 5 - 51/4 434-5 43/4 434-5 5 51/2 Effective date 1971—Nov. 11............ 19............ Dec. 13............ 1 7 24............ 1973—Jan. Feb. Mar. Apr. May 15............ 26............ 2............ 23............ 4 ............ 11............ 1 8 June 11............ 1 5 July 2............ Aug. 14............ 2 3 Range (or level)— All F.R. Banks 434-5 434 F.R. Bank of N.Y. 5 434 4 1/2 -4 3 4 4 1/2 -4 3 4 4 1/2 434 41/2 41/2 5 5 - 51/2 5Vi 5 5i/i 5Vi 51/2 534 6 6 51/ 2 - 5 3 4 534 5 3 4 -6 6 6 -6 1/2 6 1/2 7 7 - 71/2 7 1 /2 61/2 6Vi 7 7Vi 71/2 1974—Apr. 25........... 30........... Dec. 9............ 1 6 7 Vi-8 8 734-8 734 8 8 734 734 1975—Jan. 714-734 714-734 63 /4 73/4 71/4 71/4 634 634 63/4 634 6............ 10........... 2 4 Feb. 5 ........... 7........... In effect, Feb. 28, 1975 7 1 /4 634-714 MARCH 1975 □ RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions o f dollars. Requirements are in per cent o f deposits.) N et demand 2 Effective date 1 Time 3 (all classes o f banks) Reserve city O ther O ther time Savings 0-5 In effect Jan. 1, 1963........... Over 5 0-5 Over 5 4 17 17% 16Vi 17 12 121/2 Over 5 d 12 161/2 1966—July 14,21 . Sept. 8 , 1 5 . . . . 1967—M ar. 2 ............. M ar. 16.......... 1968—Jan. 1 1 ,1 8 .... 1969—Apr. 17........... 1970—Oct. 1............... 0-5 4 31/2 3 31/2 3 5 6 121/2 13 5 Beginning Nov. 9, 1972 Time 3 Net demand 2, 4 O ther time Effective date 0-2 2-10 10-100 100-400 Over 400 Savings Over 5 5, m aturing in— 0-5 30-179 days 1972—Nov. 9 ............. Nov. 16........... 8 12 IOI/2 1973—July 19............. 10 12i/i 131/2 6 16i/i 13 1974—Dec. 12........... 171/2 7 3 180 days and over 7 5 7 3 18 71/2 10 12 13 16i/2 In effect Feb. 28,1975 m 10 12 13 16i/2 3 6 171/2 1975—Feb. 1 3 ........... 3 Present legal lim its: N et demand deposits, reserve city b a n k s........... N et demand deposits, other b a n k s..................... Time deposits.......................................................... 1 W hen two dates are shown, the first applies to the change at reserve city banks and the second to the change at country banks. For changes prior to 1963 see Board’s Annual Reports. 2 (a) D em and deposits subject to reserve requirements are gross de mand deposits minus cash items in process o f collection and demand balances due from domestic banks. (b) Requirement schedules are graduated, and each deposit interval applies to that part o f the deposits o f each bank. (c) Since Oct. 16, 1969, member banks have been required under Regulation M to maintain reserves against foreign branch deposits computed on the basis o f net balances due from domestic offices to their foreign branches and against foreign branch loans to U.S. residents. Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident have been excluded from com putations, as have total loans o f a bank to U.S. residents if not exceeding $1 million. Regulation D imposes a similar reserve requirement on borrowings from foreign banks by domestic offices o f a member bank. The reserve percentage applicable to each o f these classifications is 8 per cent. The requirement was 10 per cent originally, was increased to 20 per cent on Jan. 7,1971, and was reduced to the current 8 per cent effective June 21, 1973. Initially certain base amounts were exempted in the com putation o f the requirements, but effective Mar. 14, 1974, the last o f these reserve-free bases were eliminated. For details, see Regulations D and M. 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation club accounts became subject to same requirements as savings deposits. F o r other notes see 2(b) and 2(c) above. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re serve cities, and on the same date requirements for reserves against net demand deposits o f member banks were restructured to provide that each 3 6 3 M inimum Maximum 10 7 3 22 14 10 member bank will maintain reserves related to the size o f its net demand deposits. The new reserve city designations are as follows: A bank having net demand deposits o f more than $400 million is considered to have the character o f business o f a reserve city bank, and the presence o f the head office o f such a bank constitutes designation o f that place as a reserve city. Cities in which there are F.R . Banks or branches are also reserve cities. Any banks having net demand deposits o f $400 million or less are considered to have the character o f business o f banks outside of reserve cities and are permitted to maintain reserves at ratios set for banks n ot in reserve cities. F o r details, see Regulation D and appropriate sup plements and amendments. 5 A marginal reserve requirement was in effect between June 21, 1973, and Dec. 11, 1974, against increases in the aggregate o f the following types o f obligations: (a) outstanding time deposits o f $100,000 or more, (b) outstanding funds obtained by the bank through issuance by a bank’s affiliate o f obligations subject to existing reserve requirements on time deposits, and (c) beginning July 12, 1973, funds from sales o f finance bills. The requirement applied to balances above a specified base, but was not applicable to banks having obligations o f these types aggregating less than $10 million. For details, including percentages and m aturity classifi cations, see “ Announcements” in B u l l e t in s for May, July, Sept., and Dec. 1973 and Sept. and Nov. 1974. 6 The 1 6 ^ per cent requirement applied for one week, only to former reserve city banks. For other banks, the 13 per cent requirement was continued in this deposit interval. 7 See columns above for earliest effective date o f this rate. N o t e .— Required reserves must be held in the form o f deposits with F.R. Banks or vault cash. A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ MARCH 1975 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Type and size o f deposit July 20, 1966 Savings deposits............... Other time deposits: 1 Multiple m aturity:2 30-89 days........... 90 days to 1 y ear. 1-2 years............. 2 years or m o re ... Single-maturity: Less than $100,000: 30 days to 1 year. 1-2 years............. 2 years or m o re . . $100,000 or m ore: 30-59 days........... 60-89 day s........... 90-179 days......... 180 days to 1 year 1 year or m o re. . . Sept. 26, 1966 Effective date A pr. 19, 1968 Jan. 21, 1970 4i/i 4 41/i 5 5 51/i 5% 5 51/i 534 5Vi (3) (3) ( 3) ( 3) ( 3) 5% 5% 6 161/4 5i/i SVi 1 F o r exceptions with respect to certain foreign time deposits, see B u l l e t in for Feb. 1968, p. 167. 2 M ultiple-maturity time deposits include deposits th at are autom ati cally renewable at m aturity w ithout action by the depositor and deposits that are payable after written notice o f withdrawal. 3 Maximum rates on all single-maturity time deposits in denominations o f $100,000 or more have been suspended. Rates th at were effective Jan. 21, 1970, and the dates when they were suspended are: 30-59 days 60-89 days 90-179 days 180 days to 1 year 1 year or more 6 V per £ 6Vi per 6% per 7 per 7 Vi per cent) cent f cent j cent [ centj Type and size o f deposit June 24, 1970 July 1, 1973 Savings deposits......................... Other time deposits (multipleand single-maturity): Less than $100,000: 30-89 d a y s.......................... 90 days to 1 y ear............... l-2 i/i years......................... 2i/i years or m o re ............. M inimum denom ination o f $1,000: 4-6 years......................... 6 years or m o re ............. Governmental units.......... $ 100,000 or m o re ................. 5 Nov. 1, 1973 Nov. 27, 1974 5 5 Vi 5 5 Vi 51/2 6 6i/i 6 (4) ( 5) ( 3) 714 ( 5) ( 3) 61/2 6 6Vi m 71/2 ( 3> Dec. 23, 1974 5 51/2 6 61/2 714 71/2 7% ( 3) Effective Nov. 1, 1973, a ceiling rate o f l lA per cent was imposed on certificates maturing in 4 years or more with minimum denom inations o f $1,000. There is no limitation on the am ount o f these certificates th a t banks may issue. 5 Prior to Nov. 27, 1974, no distinction was made between the time deposits o f governmental units and o f other holders, insofar as Regula tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, governmental units were perm itted to hold savings deposits and could receive interest rates on tim e deposits with denominations under $100,000, irrespective o f maturity, as high as the maximum rate perm itted on such deposits at any Federally insured depositary institution. N o t e .— Maximum rates that may be paid by member banks are estab lished by the Board of Governors under provisions o f Regulation Q ; however, a mem ber bank may not pay a rate in excess o f the maximum rate payable by State banks or trust companies on like deposits under Rates on multiple-maturity time deposits in denominations o f $100,000 the laws of the State in which the member bank is located. Beginning or more were suspended July 16, 1973. when the distinction between Feb. 1, 1936, maximum rates that may be paid by nonmember insured single- and multiple-maturity deposits was eliminated. 4 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates commercial banks, as established by the FD IC , have been the same as those in effect for member banks. maturing in 4 years or more with minimum denom inations o f $1,000. F or previous changes, see earlier issues of the B u l l e t in . The am ount o f such certificates that a bank could issue was limited to 5 per cent o f its total time and savings deposits. Sales in excess o f that am ount were subject to the 6J i per cent ceiling that applies to time de / posits maturing in 2Vi years or more. M ay 16, 1973 MARGIN REQUIREMENTS (Per cent o f m arket value) Fo r credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) Period On margin stocks Beginning date 1937—Nov. 1945— Feb. July 1946—Jan. 1947—Feb. 1949—M ar. 1951—Jan. 1953—Feb. 1955—Jan. Apr. 1958—Jan. Aug. Oct. 1960—July 1962—July 1963—Nov. 1 5 5 21 1 30 17 20 4 23 16 5 16 28 10 6 Ending date 1945—Feb. July 1946—Jan. 1947—Jan. 1949—M ar. 1951—Jan. 1953— Feb. 1955—Jan. Apr. 1958—Jan. Aug. Oct. 1960—July 1962—July 1963—Nov. 1968—M ar. 1968— M ar. 11 June June 8 1970—M ay 1970— May 6 1971—Dec. 1971—Dec. 6 1972—Nov. 1974—Jan. 1972—Nov. 24 Effective Jan., 3, 1974....................... 2 0 ................... 2 9 ................... 16................... 19 ................... 2 2 ................... 15................... 4 ................... 15................... 2 7 ................... 5 ................... 10................... 7 ................... T U On convertible bonds G T U On short sales (T) G 50 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 40 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 70 80 65 55 65 50 50 60 50 50 50 50 70 80 65 55 65 50 N o t e .—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act o f 1934, limit the am ount o f credit to purchase and carry margin stocks th at may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage o f the m arket value o f the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board o f Governors effective M ar. 11, FRASER 1968. Digitized for MARCH 1975 o OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions o f dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills * Others within 1 year 2 Period Gross pur chases Gross Redemp Gross sales pur tions chases 1970. 1971. 1972. 1973. 1974. 11,074 8,896 8,522 15,517 11,660 5,214 3,642 6,467 4,880 5,830 2,160 1,064 2,545 3,405 4,550 1974—Jan.., Feb.. Mar.. A p r.. May. June. July.. Aug.. Sept.. Oct... Nov.. D ec.. 1,340 335 391 768 664 566 1,237 49 737 100 954 614 988 211 1,652 850 717 565 547 1,110 1,422 273 973 426 1,402 410 165 407 341 1975—Jan... -3,483 -6,462 2,933 -1 4 0 -1,314 687 112 48 27 2,563 22 -2,867 -2 0 0 148 85 786 1,063 107 6 -1,623 126 Redemp tions Gross sales Gross Exch. or sales maturity shifts 848 1,338 789 579 797 93 30 109 172 26 34 53 Gross pur chases 5,430 4,672 -1,405 -2,028 -697 Gross pur chases -1,845 685 -2,094 895 1,675 77 93 311 167 129 196 200 Gross sales Gross pur chases 92 123 Gross pur chases 53 '- 4 6 5 *200 Federal agency obligations Net change in U.S. Govt, securi ties Repur chase agree Sales or ments, redemp net tions Bankers acceptances, net Outright Gross pur chases 2,160 2,019 2,862 4,592 4,682 12,177 16,205 23,319 45,780 64,229 12,177 16,205 23,319 45,780 62,801 33,859 44,741 31,103 74,755 71,333 33,859 43,519 32,228 74,795 70,947 4,988 8,076 -312 8,610 1,984 1974—Ja n .. Feb.. Mar.. Apr.. May. June. July. Aug.. Sept.. O ct.. Nov.. Dec.. 1,519 798 854 1,409 944 790 1,113 1,652 893 547 1,765 1,254 335 391 566 49 100 954 211 850 565 1,110 273 426 1,402 410 165 407 2,590 2,393 702 2,590 2,393 702 786 1,063 238 6 4.586 4,586 4,580 4,580 2.587 9,061 ’ i i *287 9,782 9,420 12,574 12,516 6,404 6,880 7,962 8,855 4,442 4,265 6,248 8,069 9,192 6,124 4,269 2,096 3,551 4,618 6,990 11,470 4,500 4,265 5,124 8,498 8,648 6,667 4,965 2,096 3,551 4,618 6,121 11,895 -276 -3 1,246 524 1,388 -911 -2,381 3,028 -9 6 -1,684 1,647 -498 1975—Jan.. 746 945 600 10,367 9,260 8,748 844 1 Before Nov. 1973 B u l l e t i n , included matched sale-purchase trans actions, which are now shown separately. 2 Includes special certificates acquired when the Treasury borrows directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, 131. -130 37 26 5,214 3,642 6,467 4,880 5,830 9,237 35 25 1,940 1,757 -126 Gross sales -1 0 2 150 250 87 205 ioo 1,057 200 Repurchase agreements (U.S. Govt, securities) Gross Exch. or sales maturity shifts -2,663 12,362 12,515 10,142 18,121 13,537 204 Gross Exch. or sales maturity shifts 249 933 539 500 434 -922 0 1 2 3 4 197 197 197 197 197 Over 10 years 305 Matched sale-purchase transactions (U.S. Govt, securities) Period 5-10 years 65 600 Total outright ] Gross pur chases Exch., Gross maturity Gross sales shifts, or pur redemp chases tions 99 1,036 125 1,396 450 204 945 1-5 years 485 1,197 865 3,087 370 239 322 29 120 170 360 201 309 761 238 207 39 46 48 48 15 72 35 3 16 Repur chase agree ments Out right -6 22 -9 -2 511 181 -1 4 5 -3 6 420 16 101 -8 8 29 469 223 —89 142 -7 0 -2 0 7 -4 2 185 33 424 -372 -270 369 142 -409 331 360 14 121 59 40 -100 174 188 103 Net change ^ 4,982 8,866 272 9,227 6,149 187 -1 8 5 218 201 -328 72 1,780 789 2,155 -1,115 -2,011 3,322 322 -1,970 2,739 393 -136 387 3 Net change in U.S. Govt, securities, Federal agency obligations, and bankers’ acceptances. N o t e . —Sales, redemptions, and negative figures reduce System hold ings; all other figures increase such holdings. Details may not add to totals because of rounding. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) Total Pounds sterling Belgian francs 1970........................................ 1971........................................ 1q72......................................... 257 18 192 154 3 * * 3 * 1973 —Nov.............................. 4 4 * * 1 63 90 * * * * * * 242 190 40 * * * * End of period Dec.............................. 1974—Jan............................... Feb............................... Mar.............................. Apr............................... M ay............................. Jone............................. July.............................. Aug.............................. Sept.............................. Oct.......... ............ Nov.............................. 32 6 6 8 220 * Canadian dollars * * * * * 20 5 5 5 5 1 * * 1 * * * * * * * * * * * * French francs German marks 98 2 164 * * * 10 * * 57 84 6 39 61 g 38 Italian lire Japanese yen Mexico pesos Swiss francs * 4 20 1 1 1 8 6 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 Nether lands guilders 180 180 180 A 12 FEDERAL RESERVE BANKS □ MARCH 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday Item End of month 1975 Feb. 26 Feb. 19 Feb. 12 1974 1975 Feb 5 Jan. 29 Feb. 28 Jan. 31 Feb. 28 Assets 11,621 400 Gold certificate account................................. Special Drawing Rights certificate account. 11,621 400 11,625 400 11,629 400 11,635 400 11,621 400 11,635 400 11,460 400 346 339 332 322 309 360 328 307 834 1,125 117 89 159 77 103 720 657 222 630 6 628 314 659 8 658 221 669 324 682 284 69 4,607 258 4,650 4,650 364 4,650 4,688 151 4,983 347 4,688 102 2,001 35,484 35,612 35,377 35,545 36,739 35,139 36,674 36,467 40,495 3,535 40,253 3,461 40,403 3,311 40,403 3,311 40,403 3,311 40,495 3,535 40,403 3,311 38,796 2,974 i 79,514 2,507 1 79,326 1 79,091 2,049 1 79,259 i 80,453 1,013 i 79,169 1,917 1 80,388 956 i 78,237 79,326 81,140 79,259 81,466 85,737 p 9,031 87,213 7,547 269 84,665 10,389 269 87,343 7,404 267 2 2,713 2 3,309 2 4,394 2 3,329 110,112 110,697 112,070 110,689 68,696 68,786 68,161 67,944 27,396 3,040 319 31,336 1,308 250 32,175 779 277 30,049 3,442 334 Cash...................................................... Loans: Member bank borrowings.............. O ther................................................ Acceptances: Bought outright............................... Held under repurchase agreements. Federal agency obligations: Bought outright................................ Held under repurchase agreements. U.S. Govt, securities: Bought outright: Bills........................... Certificates—Special. O ther.. N otes......................... Bonds......................... Total bought outright..................... Held under repurchase agreements. Total U.S. Govt, securities. 82,021 Total loans and securities.................. Cash items in process of collection. . . Bank premises..................................... Other assets: Denominated in foreign currencies. All o ther........................................... * 88,599 v 7,061 271 p 2 2,467 Total assets. p 110,767 p 81,086 81,344 78,237 87,486 p 5,524 271 87,203 5,646 268 81,027 7,333 226 2 2,732 2 3,248 32 700 108,396 108,730 101,485 p p Liabilities 68,302 F.R. notes........................................... Deposits: Member bank reserves.................. U.S. Treasury—General account. Foreign........................................... Other: p 30,247 3,187 271 p 34,556 p 700 Deferred availability cash items........... Other liabilities and accrued dividends. p 108,578 62,247 28,839 3,540 391 27,989 2,016 542 901 748 679 p 32,724 33,518 31,226 p 683 732 708 31,455 33,577 33,963 34,533 5,160 1,211 5,087 2,985 4,766 1,191 4,268 1,098 4,180 1,112 4,921 988 108,028 108,734 110,196 108,434 *106,168 106,427 99,382 898 897 289 p 4,680 1,040 Total liabilities....................................... 67,617 28,530 2,884 409 6,729 1,148 851 All o th e r2 ...................................... . Total deposits. 68,078 p 897 897 169 901 897 76 901 897 457 898 897 433 901 897 505 862 844 397 110,112 110,697 112,070 110,689 *108,396 108,730 101,485 Capital accounts 898 897 394 Capital paid in ............................................................. Surplus.......................................................................... Other capital accounts................................................. Total liabilities and capital accounts.......................... Contingent liability on acceptances purchased for foreign correspondents............................................ Marketable U.S. Govt, securities held in custody for foreign and international accounts.................. p 110,767 p 149 196 269 316 395 130 384 592 36,851 36,496 35,367 35,111 34,980 37,612 35,084 25,233 74,448 74,641 74,245 c 74,538 66,921 3,457 93 425 72,162 «3,207 93 425 c72,492 2,255 66,600 76,137 c 76,217 68,855 Federal Reserve Notes—Federal Reserve Agents* Accounts 74,233 74,305 74,542 F.R. notes outstanding (issued to Bank)......... Collateral held against notes outstanding: Gold certificate account................................ Special Drawing Rights certificate account. Acceptances.................................................... U.S. Govt, securities..................................... 3,457 93 425 72,162 3,457 93 425 72,062 3,457 93 425 72,062 3,207 93 425 72,492 3,047 93 425 72,760 Total collateral. 76,137 76,037 76,037 76,217 76,325 1 See note 2 on p A-4. 2 See note 6 on page A-4. MARCH 1975 □ FEDERAL RESERVE BANKS; BANK DEBITS A 13 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday Item End of month 1975 1975 1974 Feb. 26 Feb. 19 Feb. 12 Feb. 5 Jan. 29 Feb. 28 Jan. 31 Feb. 28 834 833 1 1,125 1,124 1 118 111 7 89 79 10 159 148 11 77 74 3 101 91 10 721 712 9 Acceptances—T otal........................................................ Within 15 days............................................................ 16-90 days................................................................... 91 days to 1 year......................................................... 879 358 419 102 636 136 418 82 942 450 378 114 667 163 387 117 879 405 375 99 993 470 425 98 966 457 397 112 69 29 U.S. Govt, securities—Total.......................................... Over 10 years.............................................................. 82,021 7,330 20,547 20,962 20,733 10,035 2,414 79,326 4,852 21,022 20,586 20,604 9,922 2,340 81,140 8,519 16,343 20,975 23,440 9,673 2,190 79,259 6,086 17,309 20,561 23,440 9,673 2,190 81,466 6,652 18,563 20,948 23,440 9,673 2,190 81,086 4,649 22,196 21,059 20,733 10,035 2,414 81,344 6,324 18,535 21,182 23,440 9,673 2,190 78,237 4,166 18,958 23,301 22,235 7,780 1,797 Within 15 days1.......................................................... 16-90 days................................................................... 91 days to 1 year........................................................ 1-5 years...................................................................... 5-10 years.................................................................... Over 10 years.............................................................. 4,865 423 122 541 2,374 904 501 4,650 90 169 587 2,313 990 501 5,014 407 216 587 2,313 990 501 4,650 4,839 202 217 616 2,313 990 501 5,330 514 122 608 2,541 1,025 520 4,790 153 260 573 2,313 990 501 2,001 48 63 248 846 557 239 16-90 days................................................................... 91 days to 1 year......................................................... 91 days to 1 year........................................................ 259 587 2,313 990 501 40 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 (billions of dollars) Period Total 233 SMSA’s Leading SMSA’s N.Y. 1974—Jan................................ 18,817.7 Feb............................... 19,813.7 Mar.............................. 20,166.9 20,062.3 M ay............................. 20,564.7 20,457.3 June........................... July.............................. 20,899.6 Aug.............................. 21,478.3 Sept......... ..................... 22,017.5 Oct............................... 22,348.8 Nov.............................. 22,918.7 Dec............................... '22,192.4 8,081.0 8,896.2 8,914.4 8,637.9 8,970.1 9,065.7 9,140.4 9,240.8 9,970.8 10,271.1 10,538.9 9,931.8 1975—Jan................................ 21,849.8 10,157.8 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s Total 233 SMSA’s 4,517.1 10,736.8 4,582.1 10,917.5 4,718.0 11,252.5 4,747.6 11,424.3 4,820.8 11,594.6 4,768.0 11,391.6 4,892.1 11,759.2 5,173.0 12,237.5 5,092.1 12,046.7 5,084.7 12,077.6 5,160.2 12,379.8 r5 ,152.7 ’'12,260.6 6,219.6 6,335.4 6,534.6 6,676.7 6,773.8 6,623.6 6,867.1 7,064.5 6,954.7 6,993.0 r7,219.6 r7,107.9 111.5 118.0 118.3 115.4 117.1 116.9 119.8 123.4 125.1 127.0 131.8 r128.0 270.3 294.2 292.5 274.6 275.3 279.9 282.1 286.4 310.5 316.8 324.6 312.8 6,828.8 127.2 321.8 6 others2 4,863.2 11,691.9 1 Excludes interbank and U.S. Govt, demand deposit accounts. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach. Turnover of demand deposits Leading SMSA’s N.Y. Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s 116.2 119.9 120.8 119.7 122.3 120.0 123.5 132.0 127.5 127.3 131.5 r131.8 77.3 79.3 80.3 80.2 81.1 79.8 82.8 86.3 83.7 84.1 '87.5 '86.6 62.2 63.7 64.7 65.0 65.4 64.3 67.0 68.8 66.9 67.5 70.6 69.3 125.9 83.4 67.3 6 others2 N o t e .—Total SMSA’s includes some cities and counties not designated as SMSA’s. For back data see pp. 634-35 of July 1972 B u l l e t in . A 14 MONEY STOCK □ MARCH 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted r N ot seasonally adjusted r M onth or week Mi Mi Mi Mi Mi Ms Composition of measures is described in the N o t e below. 1971— D e c .................................. 1 9 7 2 - -D ec.. . . . . .............. 1973— D ec.. ............................... 23 5 .3 2 5 5 .8 271 .5 473.1 5 2 5 .7 5 7 2 .2 727 .9 823. 3 8 9 5 .0 2 4 1.9 2 6 3 .0 279.1 A ll.9 530.7 5 7 7 .3 73 0 .9 8 26. 3 8 9 8 .2 1974— Jan., . .............................. F e b .......... ....................... M a r............................. A pr............. ..................... M a y .. .. , ............... .. J u n e ................................. J u l y . . . , ......................... Aug.................................. Sept........ ......................... Oct.. ................................ N o v ................................. D ec.................................. 270 .9 273.1 2 7 5 .2 276.6 2 7 7 .6 280.0 2 80 .5 28 0.7 281 .1 28 2.2 283 .8 284 .3 575 .5 5 8 0 .9 585.5 589.4 591 .6 597.1 59 9 .7 60 2 .2 6 0 3 .8 608.1 6 1 3 .0 61 4.3 9 0 0 .4 9 07 .5 914.6 92 0 . 2 9 2 2 .8 929.6 93 3 . 4 9 3 6 .4 938.8 9 4 4 .4 951.1 955.0 2 7 7.8 2 7 0 .2 27 2 . 5 2 7 8 .2 2 7 2. 9 278.2 280.1 27 7 .5 219 A 2 8 1 .7 2 8 5.3 29 2 .2 581 .4 57 8 .5 5 8 4. 9 59 3 .5 5 8 9 .7 5 9 6 .6 5 99 .3 598 .7 60 0 .7 60 6.3 6 1 9 .4 9 0 5 .7 90 5.1 915.4 926.3 9 2 2 .0 930.6 9 34 . 5 93 2 .5 9 34 . 5 941 .1 947.0 95 8 .3 1975 — Jan .* ............................... 2 82 . 2 6 1 5 .9 959.5 289.2 621 .8 9 6 4 .8 N o t e . —Composition of the money stock measures is as follows: M u Averages o f daily figures for (1) demand deposits o f commercial banks other than domestic interbank and U.S. G ovt., less cash items in process o f collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of commercial banks. M i\ Averages o f daily figures for M i plus savings deposits, time de posits open account, and time certificates other than negotiable C D ’s of $100,000 o f large weekly reporting banks. 611 .1 M s: M i plus the average of the beginning- and end-of-month figures for deposits o f mutual savings banks and for savings capital o f savings and loan associations. N.B. Latest monthly and weekly data—including some revisions going back to 1970—are shown in the B oard’s H.6 release for Feb. 20, 1975. For general description and other back data, see “ Revision of Money Stock Measures and M ember Bank Reserves and D eposits” on pp. 817-27 o f the Dec. 1974 Bulletin. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions o f dollars) Seasonally adjustedr Commercial banks M onth or week N ot seasonally adjusted r Commercial banks Time and savings deposits C ur ren cy D e m and de pos its C D ’s 1 Other N on bank thrift insti tu tions2 D em and deposits Cur ren cy Total Time and savings deposits Total Mem ber D omesticnonmember C D ’s 1 Other N on bank thrift insti tu tions2 U.S. Govt. de pos its 3 Total 1971—D ec.. 1972—D ec.. 1973—D ec.. 52.6 56.9 61.6 182.7 198.9 209.9 33.5 43.9 63.8 237.7 269.9 300.7 271.2 313.8 364.5 254.9 297.5 '■322.8 53.5 57.9 62.7 188.4 205.1 216.4 142.6 152.4 157.0 44.1 51.4 56.6 33.8 44.2 64.0 236.0 267.6 298.2 269.8 311.8 362.2 253.0 295.6 r321.0 6.9 7 .4 6 .3 1974—J a n ... F eb .. M ar.. A p r.. M ay. Ju n e . July.. Aug.. Sept.. O c t... Nov.. D e c .. 62.0 62.7 63.3 63.9 64.3 64.6 64.8 65.5 65.9 66.5 67.3 67.7 208.9 210.4 211.9 66.4 371.0 376.0 378.3 386.7 392.5 398.4 402.8 405.2 407.5 412.1 414.7 420.3 324.9 326.6 329.2 330.8 331.2 332.4 333.7 334.2 335.0 336.2 338.2 340.7 61.6 61.9 62.7 63.5 64.1 64.8 65.3 65.7 65.8 66.4 67.8 68.9 216.2 208.3 209.8 214.7 208.8 213.5 214.8 211.9 213.6 215.3 217.5 223.3 156.4 151.1 152.3 155.8 151.3 153.6 154.4 152.3 153.3 154.4 155.9 160.3 56.9 54.6 54.7 56.2 54.8 56.1 56.6 56.3 57.0 57.7 58.4 59.7 65.8 87.1 90.5 303.6 308.3 312.4 315.3 316.7 318.3 319.2 321.1 321.3 324.6 325.8 327.2 369.4 374.4 379.1 387.1 393.9 397.9 402.0 408.2 410.1 413.3 412.9 417.6 324.2 326.6 330.5 332.8 332.4 334.0 335.3 333.8 333.8 334.8 335.9 338.9 8.1 6.6 85.5 90.3 304.6 307.8 310.3 312.7 314.0 317.1 319.2 321.5 322.7 325.9 329.2 330.0 5 .4 4 .0 5.5 3.7 3.3 4 .8 1975—Jan.* 68.0 214.1 92.9 333.7 426.7 343.6 67.6 221.6 158.7 59.7 92.1 332.6 424.7 343.0 4 .0 212.8 213.3 215.4 215.7 215.3 215.3 215.7 216.5 216.6 68.2 68.0 73.9 78.5 81 .3 83.6 83.8 84.8 86.2 1 Negotiable time certificates o f deposit issued in denominations of $100,000 or m ore by large weekly reporting commercial banks. 2 Average o f the beginning and end-of-month figures for deposits o f m utual savings banks and savings capital at savings and loan associations. 3 At all commercial banks. See also N o t e above 66.1 66.7 71.8 77.2 79.6 82.8 87.1 88.7 88.8 6 .4 6.0 7 .6 6.1 MARCH 1975 □ BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Deposits subject to reserve requirements 3 M ember bank reserves, S.A .1 N .S.A . S.A. Period Total N on bor rowed Re quired Avail able2 Total Total member bank deposits plus nondeposit item s4 Demand Time and savings Private U.S. Govt. Total D em and Time and savings Private U.S. Govt. S.A. N.S.A. 1970—D ec....... 1971—D ec....... 1972—D ec....... 1973—D ec....... 29.20 31.33 31.46 35.16 28.87 31.20 30.41 33.87 28.95 31.15 31.17 34.86 27.13 29.03 29.09 32.97 321.3 360.3 402.0 442.2 178.9 210.7 242.0 280.0 136.0 143.8 154.5 158.2 6 .4 5.8 5.6 3.9 325.2 364.6 406.8 447.5 178.1 209.7 240.7 278.5 141.1 149.2 160.1 164.0 6 .0 5.7 6.1 5 .0 333.4 365.2 406.4 448.7 337.2 369.5 411.2 454.0 1974—Jan . . . . F eb....... M a r.. . . A pr....... M ay.. . . June___ J u ly .. . . A u g .. .. Sept___ O ct....... N o v .. . . D ec....... 35.82 35.12 34.98 35.88 36.52 36.74 37.40 37.27 37.28 36.86 36.87 36.91 34.77 33.92 33.66 34.15 33.93 33.73 34.10 33.93 34.00 35.04 35.62 36.18 35.66 34.93 34.84 35.70 36.34 36.54 37.24 37.08 37.09 36.73 36.67 36.65 32.82 32.90 33.13 33.66 34.26 34.71 34.96 35.27 35.30 34.89 34.87 34.63 446.8 447.5 450.4 461.2 467.0 472.9 475.7 478.5 480.6 480.5 483.6 485.9 284.1 287.4 288.6 296.6 302.3 307.0 310.7 312.4 314.4 317.2 318.4 323.4 157.5 157.9 158.7 160.0 159.1 160.6 160.7 159.9 159.9 159.5 160.6 160.7 5.1 2 .2 3.2 4 .6 5.6 5.3 4 .2 6 .2 6.3 3.7 4.6 1.9 453.0 447.1 450.4 462.5 464.7 470.0 474.3 475.1 479.6 480.5 481.2 491.8 283.1 285.7 288.6 296.2 303.0 306.4 310.1 315.3 317.2 318.6 317.4 321.7 163.4 156.3 156.9 161.5 155.6 158.9 160.0 157.0 158.3 159.1 161.4 166.6 6.5 5.1 4 .9 4 .8 6.1 4.7 4.1 2 .9 4.1 2 .7 2 .4 3.5 453.3 454.4 457.9 469.2 475.8 481.2 484.9 487.5 489.1 488.3 491.2 494.3 459.5 454.0 457.9 470.6 473.5 478.4 483.5 484.2 488.2 488.3 488.8 500.1 1975—Ja n ........ 36.95 36.55 36.79 34.43 488.2 328.5 159.1 0.7 495.1 327.1 165.0 2.9 495.8 502.6 1 Averages o f daily figures. M ember bank reserve series reflects actual reserve requirement percentages with no adjustment to eliminate the effect o f changes in Regulations D and M. Required reserves were in creased by $660 million effective Apr. 16, 1969, and $400 million effective Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. Required reserves were reduced by approximately $2.5 billion, effective Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective N ov. 22. 2 Reserves available to support private nonbank deposits are defined as (1) required reserves for (a) private demand deposits, (b) total time and savings deposits, and (c) nondeposit sources subject to reserve re quirements, and (2) excess reserves. This series excludes required reserves for net interbank and U.S. G ovt, demand deposits. 3 Averages o f daily figures. D eposits subject to reserve requirements include total time and savings deposits and net demand deposits as defined by Regulation D . Private demand deposits include all demand deposits except those due to the U.S. Govt., less cash items in process of collection and demand balances due from domestic commercial banks. 4 “ Total member bank deposits” subject to reserve requirements, plus Euro-dollar borrowings, loans sold to bank-related institutions, and certain other nondeposit items. This series for deposits is referred to as “ the adjusted bank credit proxy.” N o t e .—For description o f revised series and for back data, see article “ Revision o f Money Stock Measures and M ember Bank Reserves and Deposits” on pp. 817-27 o f the Dec. 1974 B u l l e t in . D ue to changes in Regulations M and D , member bank reserves include reserves held against nondeposit funds beginning Oct. 16, 1969. Back data may be obtained from the Banking Section, Division o f Research and Statistics, Board o f Governors o f the Federal Reserve System, W ashington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Total loans and invest m en ts1 D ate 1970—Dec. 1971—Dec. 1972—Dec. 1973—Dec. Loans T o tal1 Plus loans sold2 N ot seasonally adjusted Commercial and industrial3 Total Plus loans sold2 U.S. Treas ury O ther4 Securities Loans Securities Total loans and invest ments 1 T o tal1 Plus loans sold2 Commercial and industrial3 Total Plus loans sold2 U.S. Treas ury O ther4 3 1___ 3 1 ___ 3 1 ___ 3 1 ___ 435.5 484.8 556.4 630.3 291.7 320.3 377.8 447.3 294.7 323.1 380.4 451.6 110.0 115.9 129.7 155.8 112.1 117.5 131.4 158.4 57.9 60.1 61.9 52.8 85.9 104.4 116.7 130.2 446.8 497.9 571.4 647.3 299.0 328.3 387.3 458.5 301.9 331.1 389.9 462.8 112.5 118.5 132.7 159.4 114.6 120.2 134.4 162.0 61.7 64.9 67.0 58.3 86.1 104.7 117.1 130.6 1974—M ar 2 7 ........ Apr. 2 4 ......... May 2 9 ......... June 305. . . . July 3 1 * .... Aug. 28*___ Sept 25*----Oct. 30*___ Nov. 27* 6.. Dec. 31*___ 657.5 666.9 673.4 677.5 686.6 692.0 687.0 687.1 688.5 681.2 468.2 476.3 481.4 484.5 494.3 500.2 498.2 499.5 500.9 494.1 473.1 481.7 487.1 489.9 499.7 25 0 5 .5 503.5 504.7 505.8 498.9 165.1 169.5 172.9 174.6 177.9 180.7 180.8 182.5 183.0 180.5 167.9 172.6 176.0 177.5 180.8 2183.6 183.6 185.3 185.7 183.3 56.4 57.1 57.2 56.4 55.8 55.3 52.2 49.7 49.3 48.8 132.9 133.5 134.8 136.6 136.5 136.5 136.6 137.9 138.3 138.3 654.0 664.2 669.8 681.6 685.4 687.5 686.6 685.8 688.2 699.6 463.0 473.0 480.3 491.8 496.6 499.3 499.2 498.2 499.1 506.5 467.9 478.4 485.9 497.2 502.0 2504.6 504.5 503.4 504.1 511.3 164.9 170.2 172.3 177.2 178.3 179.1 180.9 181.3 182.0 184.7 167.7 173.3 175.4 180.1 181.2 2182.0 183.7 184.1 184.7 187.5 57.5 56.4 54.1 52.1 52.2 52.0 50.6 50.6 52.2 54.4 133.5 134.7 135.5 137.6 136.6 136.2 136.7 137.0 136.8 138.8 1975—Jan. 2 9 * .... Feb. 2 6 * .... 686.1 687.9 498.3 495.1 502.9 499.6 181.7 180.0 184.4 182.6 48.9 53.4 138.9 139.4 685.1 682.2 493.5 489.0 498.1 493.4 179.6 178.2 182.3 180.8 53.7 54.8 138.0 138.4 1 Adjusted to exclude domestic commercial interbank loans. 2 Loans sold are those sold outright for banks’ own foreign branches, nonconsolidated nonbank affiliates o f the bank, the banks’ holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Prior to Aug. 28, 1974, the institutions included had been defined somewhat differently, and the reporting panel o f banks was also different. On the new basis, both ‘Total loans” and “ Com mercial and industrial loans” were reduced by about $100 million. 3 Reclassification o f loans at one large bank reduced these loans by about $400 million as o f June 30, 1972. 4 Farmers H om e A dm inistration insured notes included in ‘Other securities” rather than in loans beginning June 30, 1971, when such notes totaled about $700 million. 5 D ata beginning June 30, 1974, include one large mutual savings bank that merged with a nonm em ber commercial bank. As o f that date there were increases o f about $500 million in loans, $100 million in “ Other securities,” and $600 million in “ Total loans and investments.” 6 As o f Oct. 31, 1974, “ Total loans and investments” o f all commercial banks were reduced by $1.5 billion in connection with the liquidation of one large bank. Reductions in other items were: “ Total loans,” $1.0 billion (of which $0.6 billion was in “ Commercial and industrial loans” ), and “ Other securities,” $0.5 billion. In late November “ Commercial and industrial loans” were increased by $0.1 billion as a result of loan re classifications at another large bank. N o t e . — Total loans and investments: For m onthly data, Jan. 1959— June 1973, see Nov. 1973 B u l l e t i n , pp. A-96-A-97, and for 1948-58, Aug. 1968 B u l l e t in , pp. A-94-A-97. F or a description o f the current seasonally adjusted series see the Nov. 1973 B u l l e t in , pp. 831-32, and the Dec. 1971 B u l l e t in , pp. 971-73. C om m ercial and industrial loans: For m onthly data, Jan. 1959-June 1973, see Nov. 1973 B u l l e t in , pp. A-96-A-98; for description see July 1972 B u l l e t in , p. 683. D ata are for last W ednesday of m onth except for June 30 and Dec. 31; data are partly or wholly estimated except when June 30 and Dec. 31 are call dates. A 16 COMMERCIAL BANKS □ MARCH 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions o f dollars) Loans and investments Classification by FRS membership and FDIC insurance Total Loans l Total assets— Securities Total Cash lia assets 3 bilities Total 3 and capital U.S. Treas Other ac 2 ury counts4 Deposits Interbank3 De mand Other Bor row ings Demand Time U.S. Govt. Total Num capital ber of ac counts banks Time5 Other Last-Wednesday-of-month series 6 All commercial banks: 1941—Dec. 31.. 1947—Dec. 317. 1960—Dec. 31.. 1970—Dec. 31.. 1971—Dec. 31.. 1972—Dec. 31.. 1973—Dec. 31.. 1974—Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 27.. 27.. 24.. 29.. 30... 31 ®.. 28®.. 25®.. 30®.. 27®.. 31®.. 50,746 116,284 199,509 461,194 516,564 598, 683,799 21,714 38,057 117,642 313,334 346,930 414,696 494,947 21,808 7,225 26,551 69,221 9,006 37,502 61,003 20,864 52,150 61,742 86,118 93,643 64,930 104,704 99,832 67,028 117,084 113,128 58,277 130,574 118,276 79,104 155,377 257,552 576,242 640,255 739,033 835,224 71,283 144,103 229,843 480,940 537,946 616,037 681,847 10,982 44,349 15,952 12,792 240 1,343 94,367 35,360 17,079 1,799 5,945 133,379 71,641 30,608 1,975 7,938 209,335 231,084 32,205 2,908 10,169 220,375 272,289 33,854 4,194 10,875 252,223 314,891 36,839 6,773 9,865 263,367 365,002 23 65 163 19,375 25,912 38,083 58,994 7,173 10,059 20,986 42,958 47,211 52,658 58,128 14,278 14,181 13,472 13,686 13,783 13,927 14,171 681,360 691,080 699,290 703,820 491.950 500,100 508,140 514,280 528.951 531,110 532,230 531.210 532,400 537.210 546,660 57,670 57,510 56,410 54,080 52,114 52,210 51,970 50,630 50,640 52,230 54,360 740 102,410 470 104,430 740 102,360 460 115,575 648 126,487 610 107,730 230 100,390 720 107,020 970 110,370 810 115,740 750 126,090 818,690 831,500 838,740 857,695 884,295 871,560 863,640 870.400 876.400 890,330 916,320 652,670 661,180 669,730 683,175 709,917 694,620 687,270 691.030 698.030 706,010 746,760 31,620 6,200 32,030 6,490 31,450 7,290 34,870 8,200 42,016 8,903 33,660 9,680 30,780 9,970 30,130 10,610 33,600 10,180 34,950 10,310 45,370 11,250 68,090 69,930 67,580 69,910 67,548 67,820 66,750 67,130 67,330 70,100 55,870 58.730 59,310 59,950 60,330 61,623 61,490 61,440 61.730 62,020 62,100 63,070 14,202 14,236 14,261 14,290 14,337 14,368 14,384 14,399 14,423 14,441 14,457 7 18,713 719,930 720,430 718.560 720,010 726,250 739,770 1975—Jan. 29®.. 721.560 529,940 53,660 137,960 101,560 871,180 699,770 30,790 11,380 Feb. 26®., 721,580 528,370 54,810 138,400 103,750 874,570 699,640 30,680 10,080 Members of F.R. System: 1941-Dec. 1947—Dec. 1960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 1973—Dec. 3 1 ... 3 1 ... 31... 3 1 ... 31... 31 ... 3 1 ... 43,521 97,846 165.619 365,940 405,087 465,788 528,124 18,021 32,628 99,933 253,936 277,717 329,548 391,032 19,539 57,914 49,106 45,399 47,633 48,715 41,494 5,961 7,304 16,579 66,604 79,738 87,524 95,598 23,113 32,845 45,756 81,500 86,189 96,566 100,098 68,121 132,060 216,577 465,644 511,353 585,125 655, S 61,717 122,528 193,029 384,596 425,380 482,124 526.837 10,385 12,353 16,437 29,142 30,612 31,958 34,782 1974—Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 2 7 ... 2 7 ... 2 4 ... 2 9 ... 3 0 ... 31 ... 2 8 ... 2 5 ... 308.. 27 ® . 31®.. 522,816 529,961 535,917 538.801 550,388 552.619 552,823 550,837 548.801 556,031 566,966 385,879 392,461 399,092 403,619 415,061 418,065 418,705 417,623 416.118 421,377 429.119 40,922 40,537 39,273 37,282 35,934 35,860 35,878 34,683 34,813 36,392 38,374 96,015 87,753 96,963 89,568 97.552 87,005 97,900 99,155 99,393 108,971 98,694 91,430 98,240 84,947 98,531 91,002 97,870 93,674 98,262 98,591 99,473 106,435 639.172 649,114 653,285 669,357 692,199 680,511 673,296 679,160 680.173 694,670 715,250 500,113 506,641 512,792 524.837 547,031 533,807 527,573 531,195 535,128 542,460 576,231 29,753 5.273 30,083 5,558 29,396 6,364 32,452 7.274 39,211 7,818 31,153 8,598 28,487 8,887 27,831 9,522 31,043 9,089 32,421 9,222 41,637 10,170 6,650 6,110 5,900 5,940 8,367 4,320 4,010 7,270 2,980 3,790 4,540 233,240 235,830 236,170 238,215 252,434 243,620 235,330 235,850 242,130 247,840 267,350 4,370 233,210 420,020 60,990 64,010 14.476 2,560 233,930 422,390 63,600 64,460 14.476 140 1,709 37,136 50 1,176 80,609 1,639 5,287 112,393 1,733 6,460 168,032 2,549 8,427 174,385 3,561 9,024 197,817 5,843 8,273 202,564 1975—Jan. 29®.. 550,264 414,426 37,549 98,289 86,321 676,905 536,256 28,311 10,299 Feb. 26®.. 549,214 412,036 38,626 98.552 88,419 679,014 535,250 28,157 8,991 374,960 380,720 388,920 395,950 398,197 403,340 407,180 407,170 409,140 409,120 *18,250 12,347 28,340 57,273 179,229 209,406 239,763 275,374 4 54 130 18,578 25,046 36,357 55,611 5,886 8,464 17,398 34,100 37,279 41,228 44.741 6,619 6,923 6,174 5.767 5,727 5,704 5,735 281,272 285,321 292,362 298.305 299,400 304.516 307,812 307,946 308.306 308,296 316,661 63,865 65,428 62,859 64,820 62,836 63,042 61,781 62,171 60,803 65,411 51,977 45.054 45,491 45,896 46,090 46,946 46,907 46,814 47.054 47,131 47,320 48,019 5,747 5,754 5.763 5.763 5,761 5.767 5.767 5.775 5.776 5,775 5,782 3,247 177,701 316,698 56,136 48,411 1,989 178,596 317.517 58,868 48.741 5.784 5.784 5,084 4,817 4,743 4,746 6,624 3,180 2,958 5,782 2.117 2,858 3.117 178,731 180,862 179,927 182,060 193,979 186,360 179,429 180,114 184,573 189,663 204,646 Call date series Insured banks: Total: 1941—Dec. 1947—Dec. I960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 1973—Dec. 1 1 3 1 ... 3 1 ... 3 1 ... 319.. 3 1 ... 3 1 ... 3 1 ... 49,290 114,274 198,011 458,919 514,097 594,502 678,113 21,259 37,583 117,092 312,006 345,386 411,525 490,527 21,046 6,984 25,788 67,941 i 8,750 36,926 60,468 j 20,451 51,836 61,438 1 85,475 92,708 64,691,104,020 98,281 66,679116,298 111,333 57,96lj 129,625 116,266 76,820 152,733 255,669 572,682 635,805 732,519 827,081 69,411 141,851 228,401 479,174 535,703 612,822 677,358 10,654 1,762 41,298 15,699 12,615 54 1,325 92,975 34,882 16,921 1,667 5,932 132,533 71,348 30,233 1,874 7,898 208,037 231,132 31,824 2,792 10,150 219,102 271,835 33,366 4,113 10,820 250,693 313,830 36,248 6,429 9,856 261,530 363,294 1974—June 3 0 ... 709,904 521,424 51,832136,648 123,536 871,986 703,767 40,534 8,427 126,098 891,650 718,798 40,185 9,476 Oct. 15... 722,622 535,703 186 ,918 National member: 1941—Dec. 3 1 ... 1947—Dec. 3 1 ... 1960—Dec. 3 1 ... 1970—Dec. 319.. 1971—Dec. 3 1 ... 1972—Dec. 3 1 ... 1973—Dec. 3 1 ... 27,571 65,280 107,546 271,760 302,756 350,743 398,236 11,725 21,428 63,694! 187,554 206,758 247,041 293,555 12,039 38,674 32,712 34,203 36,386 37,185 30,962 3,806 5,178 11,140 50,004 59,612 66,516 73,718 14,977 22,024 28,675 56,028 59,191 67,390 70,711 43,433 39,458 88,182 82,023 139,261 124,911 340,764 283,663 376,318 314,085 434,810!, 359,319 489,470 395,767 6, 786 8,375 35 9,829 611 982 18,051 17,511 1,828 19,096 2,155 20,357 3,876 1974—June 3 0 ... 418,329 313,659 27,631 77,039 73,703 516,632 407,915 20,086 4,912 Oct. 15 ... 421,936 319,611 102,324 74,383 522,642 416,656 20,411 6,008 For notes see p. A-17. 10 61 149 19,149 25,629 37,556 57,531 6,844 9,734 20,628 42,427 46,731 52,166 57,603 13,426 13,398 13,119 13,502 13,602 13,721 13,964 8,355 250,225 396,226 65,514 61,003 14,108 3,203 257,086 408,849 67,064 62,687 14,188 1,088 795 3,265 4,740 6,014 6,646 5,955 23,262 53,541 71,660 122,298 128,441 146,800 152,705 8,322 19,278 39,546 137,592 160,291 184,622 212,874 4 45 111 13,100 18,169 26,706 39,696 3,640 5,409 11,098 24,868 27,065 30,342 33,125 5,117 5,005 4,530 4,620 4,599 4,612 4,659 5,038 145,954 231,925 48,123 34,966 1,808 150,375 238,053 44,504 35,542 4,693 4,700 MARCH 1975 □ COMMERCIAL BANKS A 17 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions o f dollars) Loans and investments Classification by FRS membership and FDIC insurance Securities Total Loans l U.S. Treas ury Other 2 Deposits Total assets— Interbank3 Total Other Cash lia assets 3 bilities and Demand Total 3 capital De ac mand Time counts 4 U.S. Govt. Other Bor row ings Time 5 Total capital ac counts Num ber of banks Call date series Insured banks (cont.): State member: 1941—Dec. 31... 1947—Dec. 31... 1960—Dec. 31... 1970_Dec. 319.. 1971—Dec. 31... 1972—Dec. 31... 15,950 32,566 58,073 94,760 102,813 115,426 6,295 11,200 36,240 66,963 71,441 82,889 7,500 2,155 8,145 24,688 19,240 2,125 10,822 43,879 16,394 5,439 17,081 77,316 11,196 16,600 25,472 125,460 11,247 20,125 26,998 135,517 11,530 21,008 29,176 150,697 22,259 3,739 40,505 3,978 15 68,118 6,608 1,028 101,512 11,091 750 111,777 13,102 721 123,186 12,862 1,406 621 381 2,022 1,720 2,412 2,378 13,874 27,068 40.733 45.734 45,945 51,017 4,025 2,246 9,062 9 3,055 17,727 20 6,299 42,218 5,478 9,232 49,597 6,878 10,214 55,523 9,651 10,886 1,502 1,918 1,644 1,147 1,128 1,092 1973—Dec. 31... 130,240 97,828 10,532 21,880 29,387 166,780 131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—June 3 0 ... Oct. 15.. 132,388 101,732 137,005 105,462 8,303 22,353 35,268 175,896 139,446 19,125 36,194 182,837 140,676 18,472 31,543 2,906 2,817 1,586 47,690 68,138 14,713 11,980 577 47,570 71,239 19,399 12,206 1,068 1,072 53 149 645 1,438 1,723 1,796 6,810 6,478 6,948 7,735 7,875 8,017 Nonmember: 1941—Dec. 1947—Dec. 1960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 31... 31... 31... 319.. 31... 31... 5,776 16,444 32,411 92,399 108,527 128,333 3,241 4,958 17,169 57,489 67,188 81,594 1,509 1,025 2,668 8,708 10.039 1,448 4,083 20,691 11,368 3,874 6,082 39,114 16.039 18,871 11,208 106.457 17,058 24,282 12,092 123,970 17,964 28,774 14,767 147,013 7,702 19,342 35,391 93,998 109,841 130,316 262 484 1,091 1,212 1,408 129 4 27 141 242 552 4,162 12,366 20.140 40,005 44,717 52,876 3,360 959 6,558 7 1,271 14,095 19 3,232 51,322 571 8,326 61,946 582 9,451 73,685 1,199 10,938 1973—Dec. 31... 149,638 99,143 16,467 34,027 16,167 170,831 150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 1974—June 3 0 ... Oct. 1 5 .. 37,255 14,565 179.457 156,406 159,186 106,033 15, 53,050 15,521 186,171 161,466 163,681 110,630 1,323 1,301 610 651 1,731 56,580 96,162 2,678 14,057 816 59.140 99,557 3,161 14,940 8,347 8,416 Noninsured nonmember: 1941—Dec. 1947—Dec. I960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 241 255 413 642 684 785 763 576 314 934 1,551 1,794 316 949 282 1,001 761 1,280 535 304 239 349 2,283 2,643 1,883 4,365 5,130 7,073 1,872 2,251 1,443 2,570 2,923 3,775 2,010 8,650 4,996 591 344 2,951 12,770 6,610 1,481 476 2,270 1,266 3,431 10,992 11,318 1,703 4,659 23,334 11,904 4,287 6,396 40,997 16,342 19,514 12,143 110,822 17,297 24,966 13,643 129,100 18,313 29,559 16,562 154,085 9,573 21,591 36,834 96,568 112,764 134,091 457 439 643 1,466 1,592 1,895 190 160 243 359 633 5,504 167 13,758 657 20,986 1,478 41,303 1.742 45,990 1,850 54,406 155,830 104,070 16,783 34,976 18,177 179,480 155,165 2,057 930 1974—June 30.. . 168,456 114,020 16,180 38,256 17,516 192,227 163,016 2,804 1,086 1,457 2,009 1,498 3,079 3,147 4,865 455 474 550 2,132 2,224 3,731 1973—Dec. 31... 6,192 4,927 1974—June 30.. . 9,269 7,987 7,233 18,454 33,910 95,478 111,674 133,198 3,696 5,432 17,719 59,621 69,411 85,325 Total nonmember: 1941—Dec. 1947—Dec. 1960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 31... 317.. 31... 319.. 31... 31... 31... 31... 31... 319.. 31... 31... 1973—Dec. 31... 1 Loans to farmers directly guaranteed by CCC were reclassified as securities and Export-Import Bank portfolio fund participations were reclassified from loans to securities effective June 30, 1966. This reduced “Total loans” and increased “Other securities” by about $1 billion. “Total loans” include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are in cluded in “Federal funds sold, etc.,” on p. A-18. Effective June 30, 1971, Farmers Home Administration notes were classified as “Other securities” rather than “Loans.” As a result of this change, approximately $300 million was transferred to “Other securities” for the period ending June 30, 1971, for all commercial banks. See also table (and notes) at the bottom of p. A-26. 2 See first 2 paragraphs of note 1. 3 Reciprocal balances excluded beginning with 1942. 4 Includes items not shown separately. See also note 1. 5 See third paragraph of note 1 above. 6 For the last-Wednesday-of-the-month series, figures for call dates are shown for June and December as soon as they became available. 7 Beginning with Dec. 31, 1947, the series was revised; for description, see note 4, p. 587, May 1964 B u l l e t i n . 8 Member bank data for Oct. exclude assets of $3.6 billion of one large bank. 9 Figure takes into account the following changes, which became effective June 30, 1969: (1) inclusion of consolidated reports (including figures for all bank-premises subsidiaries and other significant majority- 329 177 159 375 380 488 185 132 101 116 81 1,291 18 1,392 13 846 40 1,298 19 1,273 55 1,530 253 478 293 756 1,134 1,620 13 4 14 226 283 527 329 325 358 532 480 491 1,836 2,215 1,463 524 207 2,209 2,432 2,033 620 229 18 1,288 3,613 12 1,596 7,036 14,388 33 3,590 52,078 796 8,858 63,081 866 9,932 75,305 1,726 11,429 7,662 7,261 7,300 7,919 8,056 8,223 1,592 60,802 89,784 3,383 13,386 8,436 1.743 58,789 98,593 4,711 8,576 14,677 852 783 352 184 181 206 owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves—rather than net as previously reported. N o t e . —Data are for all commercial banks in the United States (includ ing Alaska and Hawaii, beginning with 1959). Commercial banks represent all commercial banks, both member and nonmember; stock savings banks; and nondeposit trust companies. Figures for member banks before 1970 include mutual savings banks as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks are not included in insured commercial banks. Effective June 30, 1969, commercial banks and member banks exclude a small national bank in the Virgin Islands; also, member banks exclude, and noninsured commercial banks include, through June 30,1970, a small member bank engaged exclusively in trust business; beginning 1973, excludes 1 national bank in Puerto Rico. Beginning Dec. 31, 1973 and June 30, 1974, respectively, member banks exclude and noninsured nonmember banks include 1 and 2 noninsured trust companies that are members of the Federal Reserve System. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and by mergers etc. Figures are partly estimated except on call dates. For revisions in series before June 30, 1947, see July 1947 B u l l e t i n , pp. 870-71. A 18 COMMERCIAL BANKS □ MARCH 1975 ASSETS BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 Account All Insured commercial commercial banks banks Large banks Total New York City All other City of Chicago Non member banks1 Other large 123,536 8,350 30,146 29,824 2,080 1,011 52,125 108,971 6,245 30,146 19,732 1,295 884 50,669 36,265 460 6,204 7,560 99 221 21,722 4,217 131 1,319 741 71 70 1,885 38,075 1,983 12,459 3,503 456 498 19,176 30,415 3,671 10,165 7,928 669 96 7,886 17,516 2,133 Demand balances with banks in United States........ Other balances with banks in United States............ Balances with banks in foreign countries................. Cash items in process of collection........................... 126,487 8,378 30,146 31,853 2,517 1,386 52,207 Total securities held—Book value................................. U.S. Treasury.............................................................. Other U.S. Govt, agencies.......................................... States and political subdivisions................................ All other securities...................................................... 189,762 52,114 31,359 99,870 6,420 188,480 51,832 31,001 99,466 6,180 135,326 35,934 20,523 74,457 4,412 15,193 3,715 2,123 8,578 777 5,266 1,207 923 2,930 206 44,738 11,586 5,960 25,850 1,342 70,129 19,426 11,518 37,099 2,087 54,436 16,180 10,835 25,413 2,008 Trade-account securities............................................. U.S. Treasury.......................................................... Other U.S. Govt, agencies...................................... States and political subdivisions............................ 6,370 707 1,472 3,921 269 6,368 705 1,472 3,921 269 6,281 691 1,462 3,876 253 2,162 -2 2 505 1,616 63 539 141 148 250 3,293 531 774 1,802 186 288 42 35 207 4 88 16 10 45 17 Bank investment portfolios........................................ U.S. Treasury.......................................................... Other U.S. Govt, agencies...................................... States and political subdivisions............................ All other................................................................... 183,393 51,407 29,886 95,949 6,151 182,112 51,127 29,528 95,545 5,911 129,045 35,243 19,061 70,581 4,159 13,031 3,738 1,617 6,962 714 4,727 1,066 775 2,680 206 41,445 11,056 5,186 24,047 1,156 69,842 19,384 11,483 36,892 2,083 54,348 16,164 10,825 25,368 1,992 Federal funds sold and securities resale agreements... Commercial banks...................................................... Brokers and dealers.................................................... Others........................................................................... 35,307 31,612 2,658 1,037 33,225 29,530 2,658 1,037 25,374 21,780 2,628 966 1,944 1,692 82 170 1,239 « 900 227 112 11,939 9,379 1,956 602 10,251 9,808 361 82 9,933 9,832 30 72 Other loans..................................................................... Real estate loans......................................................... Secured by farmland............................................... VA guaranteed................................................. O ther................................................................ Multifamily.......................................................... FHA insured.................................................... Other................................................................ Secured by other properties................................... 494,104 126,173 5,797 78,752 71,577 6,297 3,350 61,930 7,175 1,064 6,112 41,623 488,199 125,914 5,777 78,544 71,387 6,250 3,301 61,836 7,157 1,046 6,110 41,593 390,017 92,093 2,599 58,923 52,993 5,472 2,851 44,669 5,930 954 4,976 30,572 76,484 7,698 6 4,174 2,888 261 196 2,431 1,286 179 1,107 3,519 23,502 1,260 2 833 774 40 20 714 59 28 31 425 147,030 35,201 340 23,742 20,874 3,065 1,505 16,304 2,868 491 2,378 11,119 143,001 47,934 2,251 30,175 28,457 2,106 1,130 25,221 1,717 256 1,461 15,509 104,087 34,079 3,199 19,829 18,584 824 499 17,260 1,245 110 1,135 11,052 Loans on securities to brokers and dealers.............. Other loans for purch./carry securities..................... Loans to farmers........................................................ Commercial and industrial loans............................... 13,110 33,567 5,317 4,217 18,444 177,184 11,218 33,418 5,294 4,175 18,423 174,304 10,784 31,997 5,176 3,533 10,885 149,154 5,191 11,881 3,189 623 140 39,229 954 4,509 794 338 222 12,907 4,027 12,956 1,023 1,597 2,622 58,205 612 2,651 170 974 7,901 38,812 2,325 1,570 141 684 7,558 28,030 Other retail consumer goods.............................. Mobile homes.................................................. Other................................................................ Other instalment loans........................................ Single-payment loans to individuals..................... All other loans............................................................ 102,615 78,947 33,902 5,151 9,458 7,017 2,442 15,364 8,847 6,518 15,072 23,668 13,479 102,165 78,565 33,648 5,142 9,458 7,016 2,442 15,340 8,845 6,495 14,977 23,600 13,288 74,285 56,485 22,953 3,788 8,408 6,322 2,086 10,890 6,399 4,492 10,445 17,801 12,109 5,104 2,874 458 197 969 689 280 151 76 74 1,099 2,230 3,428 1,410 735 161 38 299 272 27 111 57 54 126 676 1,107 26,254 20,051 7,243 1,522 4,703 3,541 1,162 3,723 2,261 1,462 2,859 6,203 5,144 41,517 32,825 15,091 2,030 2,436 1,820 617 6,906 4,004 2,902 6,362 8,692 2,430 28,330 22,462 10,948 1,363 1,050 694 356 4,474 2,448 2,026 4,627 5,868 1,370 Total loans and securities.............................................. 719,173 709,904 550,717 93,621 30,008 203,707 223,381 168,456 Fixed assets—Buildings, furniture, real estate.............. Investments in subsidiaries not consolidated............... Customer acceptances outstanding............................... Other assets..................................................................... 14,168 1,595 6,645 16,688 14,092 1,586 6,500 16,367 10,808 1,568 6,249 14,216 1,115 716 3,739 3,539 431 121 359 771 4,358 674 1,900 6,537 4,903 57 251 3,368 3,360 27 396 2,472 Total assets..................................................................... 884,755 871,986 692,529 138,996 35,906 255,251 262,376 192,227 Cash bank balances, items in process........................... Currency and coin...................................................... 1- to 4-family residences..................................... Loans to individuals................................................... Instalment loans...................................................... Passenger automobilies....................................... Residential-repair/modernize............................. Credit cards and related plans........................... Charge-account credit cards........................... 1 Member banks exclude and nonmember banks include 2 noninsured trust companies that are members of the Federal Reserve System, and member banks exclude 2 national banks outside the continental United States. 2 See table (and notes), Deposits Accumulated for Payment o f Personal Loans , p. 26. 3 Demand deposits adjusted are demand deposits other than domestic commercial interbank and U.S. Govt., less cash items reported as in process of collection. 12,121 1,222 502 1,538 N o t e . —Data include consolidated reports, including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Figures for total loans and for individual categories of securities are reported on a gross basis—that is, before deduction of valuation reserves. Back data in lesser detail were shown in previous B u l l e t i n s . Beginning with the fall Call Report, data for future spring and fali iCall Reports will be available from the Data Production Section of the Division of Data Processing. Details may not add to totals because of rounding. MARCH 1975 □ COMMERCIAL BANKS A 19 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 Account All Insured commercial commercial banks banks Large banks Total New York City All other City of Chicago Nonmember banks1 Other large Demand deposits............................................................ Mutual savings banks................................................. Other individuals, partnerships, and corporations. . U.S. Government........................................................ States and political subdivisions................................ Foreign governments, central banks, etc................... Commercial banks in United States......................... Banks in foreign countries......................................... Certified and officers’ checks, etc............................... 302,816 1,298 216,285 8,367 19,379 1,698 34,586 6,131 15,072 299,114 1,186 215,421 8,355 19,249 1,534 33,562 5,786 14,020 239,480 1,103 165,670 6,624 14,264 1,514 32,576 5,532 12,197 60,522 472 26,762 882 1,346 1,307 18,867 4,332 6,553 9,014 1 6,871 226 202 17 1,335 127 235 81,359 171 61,031 2,893 4,076 182 9,135 955 2,916 88,585 459 71,006 2,622 8,640 8 3,240 118 2,493 63,337 196 50,615 1,743 5,116 185 2,010 598 2,875 Time and savings deposits.............................................. Savings deposits.......................................................... Accumulated for personal loan payments2.............. Mutual savings banks................................................. Other individuals, partnerships, and corporations.. U.S. Government........................................................ States and political subdivisions................................ Foreign governments, central banks, etc................... Commercial banks in United States.......................... Banks in foreign countries......................................... 407,561 133,129 460 486 207,331 446 47,711 9,581 7,502 915 404,653 132,868 457 465 206,061 446 47,551 8,843 7,301 661 307,881 96,488 330 456 159,052 334 35,192 8,668 6,784 578 44,468 6,165 16,233 2,039 275 25,950 53 2,088 5,074 4,437 426 32 10,969 31 1,655 874 606 27 111,622 33,834 63 129 58,285 100 14,963 2,686 1,461 100 135,559 54,450 267 20 63,848 149 16,487 33 280 25 99,679 36,641 130 30 48,279 111 12,518 913 718 338 Total deposits.................................................................. 710,377 703,767 547,361 104,990 25,247 192,980 224,144 163,016 Federal funds purchased and securities sold under agreements to repurchase........................................... Other liabilities for borrowed money........................... Mortgage indebtedness................................................... Bank acceptances outstanding....................................... Other liabilities............................................................... 57,064 10,483 1,192 6,916 29,091 55,983 9,531 1,188 6,761 25,767 53,652 9,184 1,002 6,509 21,338 11,115 3,665 78 3,980 4,583 5,641 141 5 362 2,015 28,973 4,193 386 1,914 8,053 7,922 1,185 533 253 6,689 3,412 1,299 189 407 7,752 Total liabilities................................................................ 815,123 802,997 639,046 128,411 33,410 236,499 240,726 176,076 Minority interest in consolidated subsidiaries.............. Total reserves on loans/securities.................................. Reserves for bad debts (IRS)..................................... Other reserves on loans.............................................. Reserves on securities................................................. 4 8,005 7,709 125 171 4 7,982 7,691 125 166 1 6,535 6,347 79 110 1,449 1,448 1 428 427 1 2,428 2,368 8 52 1 2,231 2,104 69 58 3 1,470 1,362 47 61 Total capital accounts.................................................... Capital notes and debentures..................................... Equity capital.............................................................. Preferred stock........................................................ Common stock........................................................ Surplus..................................................................... Undivided profits.................................................... Other capital reserves.............................................. 61,623 4,310 57,313 64 14,525 24,408 17,398 917 61,003 4,203 56,801 59 14,423 24,272 17,196 851 46,946 3,419 43,526 41 10,886 18,655 13,329 616 9,136 752 8,384 18 2,167 3,458 2,737 4 2,068 57 2,012 562 1,140 268 41 16,323 1,682 14,641 11 3,542 6,705 4,130 253 19,418 929 18,490 12 4,614 7,351 6,194 318 14,677 891 13,786 23 3,640 5,753 4,069 301 Total liabilities, reserves, minority interest, capital accounts....................................................................... 884,755 871,986 692,529 138,996 35,906 255,251 262,376 192,227 Demand deposits adjusted3........................................... Average total deposits (past 15 days)........................... Average total loans (past 15 days)................................ 207,657 693,902 501,628 205,072 687,496 493,909 149,611 532,535 390,178 19,051 96,854 75,995 5,569 24,780 23,483 50,155 189,299 147,258 74,837 221,602 143,441 58,046 161,366 111,450 Selected ratios: Percentage of total assets Cash and balances with other banks......................... 14.3 14.2 15.7 26.1 11.7 14.9 11.6 9.1 Total securities held.................................................... Trading account securities...................................... U.S. Treasury...................................................... States and political subdivisions......................... All other trading account securities................... 21.4 .7 .1 .4 .2 21.6 .7 .1 .4 .2 19.6 .9 .1 .6 .2 10.9 1.6 17.5 1.3 .2 .7 .4 26.7 .1 28.3 1.2 .4 14.7 1.5 .4 .7 .4 Bank investment portfolios.................................... U.S. Treasury...................................................... States and political subdivisions......................... All other portfolio securities............................... 20.7 5.8 10.8 4.1 20.9 5.9 11.0 4.1 18.6 5.1 10.2 3.4 9.4 2.7 5.0 1.7 13.2 3.0 7.5 2.7 16.2 4.3 9.4 2.5 26.6 7.4 14.1 5.2 28.3 8.4 13.2 6.7 Other loans and Federal funds sold.......................... All other assets............................................................ Total loans and securities.......................................... 59.8 4.4 81.3 59.8 4.4 81.4 60.0 4.7 79.5 56.4 6.6 67.4 68,9 4.7 83.6 62.3 5.3 79.8 58,4 3.3 85.1 59.3 3.3 87.6 Reserves for loans and securities............................... Equity capital—Total................................................. Total capital accounts................................................ .9 6.5 7.0 .9 6.5 7.0 .9 6.3 6.8 1.0 6.0 6.6 1.2 5.6 5.8 1.0 5.7 6.4 .9 7.0 7.4 .8 7.2 7.6 Number of banks........................................................... 14,337 14,108 5,761 13 9 156 5,583 8,576 For notes see opposite page. .1 A 20 WEEKLY REPORTING BANKS □ MARCH 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions o f dollars) Loans Federal funds sold, etc.1 Total loans and invest ments Wednesday Other To brokers and dealers involving— Total To com mer cial banks For purchasing or carrying securities To U.S. others Total Treas Other se ury se curi curi ties ties Com mer cial and indus trial Agri cul tural To brokers and dealers To others To nonbank financial institutions Real estate U.S. U.S. Treas Other Treas. Other ury secs. ury secs. secs. secs. Pers. and sales finan. Other C O S ., etc. Large banks— Total 1974 268,055 267,640 267,577 268,739 109,986 110,149 110,142 110,707 3,739 1,159 5,025 3,733 731 4,804 3,732 586 4,986 3,744 989 5,271 155 151 148 151 774 300,420 858 297,329 934 293,277 913 292,188 130,244 129.083 127,873 126,850 3,722 2,353 3,496 3,690 1,216 3,597 3,645 550 2,945 3,605 898 3,375 86 86 84 82 2,533 10,477 21,395 60,061 2,489 10,417 21,381 60,074 2,449 10,141 21,047 60,049 2,464 9,934 20,823 60,095 911 291,973 126,468 1,248 1,000 1,077 289,315 126,072 1,076 1,096 291,205 126.083 897 288,849 125,987 1,026 3,570 1,467 3,289 3,513 585 2,769 3,504 1,287 3,443 800 2,786 3,498 82 83 82 80 2,446 10,114 20,898 59,859 2,444 9,785 20,775 59,667 2,470 10,226 20,698 59,751 2,430 9,731 20,492 59,725 5 63,188 31,558 62,572 31,504 10 62,218 31,380 2 63,137 31,601 142 1,047 3,120 614 2,861 138 135 489 2,939 136 887 3,240 47 42 41 40 616 622 613 615 2,637 2,532 2,552 2,714 6,217 6,219 6,269 6,146 6.445 6,460 6.445 6,380 371,407 370,362 371,190 372,059 16,030 16,725 16,659 16,414 14,046 1,340 15,093 1,035 15,089 984 14,597 1,216 8 .................... 15.................... 22.................... 29.................... 407,676 402,933 395,866 393,582 19,534 18,676 17,434 17,342 14,909 14,693 14,389 13,847 2,392 1,459 1,865 1,260 1,271 840 1,595 987 5®.................. 12p ............................. 19p .................. 26p ............................. 397,028 394,403 397,374 391,765 21,115 20,653 20,415 17,735 17,027 16,774 16,514 14,257 1,929 1,802 1,729 1*555 79,748 78,743 79,370 79,661 1 ,043 1,067 1,514 1,001 1,012 1,032 1,455 999 26 26 49 Feb. 6 .................... 13.................... 20.................... 27.................... Jan. Feb. 415 394 353 366 229 203 233 235 2,731 2,744 2,740 2,743 8,106 7,911 7,931 8,128 18,017 18,129 18,213 18,156 55,859 55,889 55,942 55,905 1975 New York City 1974 Feb. 6 .................... 13.................... 20.............. 27.................. Jan. 8 .................... 15................ 22................ 29.................. 94,211 93,408 90,188 89,669 1,406 2,506 2,067 1,977 1,322 2,402 1,814 1,774 28 62 93 108 Feb. 5p ................ 12p ............................. 19®................ 26p ............................. 88,796 88,958 91,539 88,753 1,065 1,613 2,444 1,311 855 1,308 2,051 1,066 126 141 136 128 26 291,659 291,619 291,820 292,398 14,987 15,658 15,145 15,413 13,034 1,314 14,061 1,009 935 13,634 13,598 1,216 9 1975 18 42 160 95 77,323 75,986 73,681 73,479 40,894 40,396 39,812 39,477 126 1,980 2,277 126 1,085 2,349 125 482 1,868 121 754 2,231 21 21 20 20 534 507 502 499 3,536 3,591 3,428 3,288 8,282 8,330 8,207 8,192 7,514 7.508 7,531 7.509 84 138 257 112 73,684 72,662 74,173 72,646 39,306 39,160 39,253 39,175 120 946 2,123 109 517 1,874 117 1,130 2,354 115 725 1,841 18 17 20 18 492 494 498 482 3,498 3,332 3,504 3,246 8,338 8,292 8,242 8,142 7,448 7,468 7,455 7,447 415 385 353 366 224 204,867 203 205,068 223 205,359 233 205,602 78,428 78,645 78,762 79,106 3,597 3,595 3,597 3,608 112 117 97 102 1,905 1,943 2,047 2,031 108 109 107 111 2,115 2,122 2.127 2.128 5,469 5,379 5,379 5,414 11,800 11,910 11,944 12,010 49,414 49,429 49,497 49,525 38 5 Outside New York City 1974 Feb. 6 .................... 13.................... 20.................... 27.................... Jan. 8 ................... 15.................... 2 2................... 29................... 313,465 309,525 305,678 303,913 18,128 16,170 15,367 15,365 13,587 12,291 12,575 12,073 2,364 1,421 1,803 1,260 840 1,178 987 1,487 756 223,097 816 221,343 774 219,596 818 218,709 89,350 88,687 88,061 87,373 3,596 3,564 3,520 3,484 373 131 68 144 1,219 1,248 1,077 1,144 65 65 64 62 1,999 1,982 1,947 1,965 6,941 6,826 6,713 6,646 13,113 13,051 12,840 12,631 52,547 52,566 52,518 52,586 Feb. 5p .................. 12p .................. 19®.................. 26®.................. 308,232 305,445 305,835 303,012 20,050 19,040 17,971 16,424 16,172 15,466 14,463 13,191 1,803 1,248 974 1,661 1,593 1,076 1,427 1,021 827 939 839 785 87,162 86,912 86,830 86,812 3,450 3,404 3,387 3,383 521 1,166 895 68 157 1,089 75 945 64 66 62 62 1,954 1,950 1,972 1,948 6,616 6,453 6,722 6,485 12,560 12,483 12,456 12,350 52,411 52,199 52,296 52,278 1975 For notes see p. A-24. 218,289 216,653 217,032 216,203 MARCH 1975 □ WEEKLY REPORTING BANKS A 21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions o f dollars) Investments Loans (cont.) Notes and bonds maturing— To commer cial banks Do mes tic For eign Other securities U.S. Treasury securities Other (cont.) Con sumer For instal eign ment govts. All other Total Certif Bills icates Within 1 to 1 yr. 5 yrs. After 5 yrs. Total Obligations of States and political subdivisions Tax war rants 3 Other bonds, corp. stocks, and securities Wednesday Certif. of All All other partici other 5 pation4 Large banks — Total 1974 3,900 3,597 3,627 3,693 4,843 4,807 4,705 4,714 33,247 33,216 33,187 33,214 1,455 1,490 1,380 1,438 19,833 20,289 20,258 19,886 25,527 25,236 25,616 25,329 5,809 5,635 4,936 4,837 4,690 4,732 4,252 4,262 11,701 11,630 12,242 12,111 3,327 3,239 4,186 4,119 61,795 60,761 61,338 61,577 7,637 7,191 7,250 7,178 40,520 40,108 40,356 40,670 2,454 2,418 2,434 2,417 11,184 11,044 11,298 11,312 .............. Feb. 6 .........................13 .........................20 .........................27 3,372 3,164 3,207 3,205 6,164 6,042 5,783 5,485 35,023 34,950 34,870 34,849 1,555 1.457 1,428 1.457 19,939 19,683 19,206 19,066 25,087 24,512 23,689 23,011 4,780 4,412 3,759 3,392 3,701 3,733 3,710 3,614 12,966 12,842 12,723 12,568 3,640 3,525 3,497 3,437 62,635 62,416 61,466 61,041 6,763 6,737 6,436 6,324 40,817 40,586 40,110 40,005 2,450 2,496 2,470 2,477 12,605 12,597 12,450 12,235 .............. Jan. 8 .........................15 .........................22 .........................29 2,934 3,166 2,892 2,866 5,450 5.473 5,493 5.474 34,726 34,664 34,587 34,502 1,405 1,436 1,471 1,439 19,265 18,883 19,218 19,039 22,752 23,253 24,427 24,033 3,385 4,138 4,057 4,046 3,757 3,706 3,428 3,405 12,326 12,165 13,254 13,010 3,284 3,244 3,688 3,572 61,188 61,182 61,327 61,148 6,273 6,239 6,237 6,136 39,936 39,994 40,061 40,113 2,480 2,479 2,513 2,565 12,499 12,470 12,516 12,334 .............. Feb. 5* .........................12* .........................19* .........................26* 1975 New York City 1974 1,514 1,310 1,289 1,357 2,263 2,279 2,297 2,370 2,463 2,483 2,476 2,478 689 717 641 714 4,430 4,791 4,652 4,459 5,128 5,054 5,250 5,037 1,821 1,702 1,310 1,271 700 711 553 543 1,545 1,549 1,912 1,851 1,062 1,092 1,475 1,372 10,389 10,050 10,388 10,486 2,230 2,039 2,107 2,130 5,388 5,286 5,455 5,579 590 581 581 572 2,181 2,144 2,245 2,205 ...............Feb. 6 .........................13 .........................20 .........................27 1,599 1,525 1,544 1,548 3,032 2,950 2,836 2,622 2,636 2,654 2,649 2,648 842 840 793 733 4,050 4,104 3,884 3,837 5,068 4,700 4,607 4,503 800 592 641 602 335 327 303 284 2,692 2,584 2,480 2,450 1,241 10,414 1,197 10,216 1,183 9,833 1,167 9,710 2,023 1,979 1,855 1,772 5,467 5,383 183 176 522 557 538 539 2,402 2,297 2,257 2,223 .............. Jan. 8 .........................15 .........................22 .........................29 1,501 1,507 1,484 1,442 2,652 2,704 2,682 2,760 2,641 2,628 2,634 2,612 692 701 708 691 3,909 3,859 4,092 3,950 4,333 665 4,868 1,259 5,205 1,071 5,118 1,051 321 323 361 356 2,320 1,027 991 2,295 2,597 1,176 2,558 1,153 9,714 9,815 9,717 9,678 1,765 1,812 1,779 1,664 5,152 5,180 5,133 5,173 562 554 534 533 2,235 2,269 2,271 2,308 .............. Feb. 5* .........................12* .........................19*> .........................26* 1975 Outside New York C ity 1974 2,386 2,287 2,338 2,336 2,580 2,528 2,408 2,344 30,784 30,733 30,711 30,736 766 773 739 724 15,403 15,498 15,606 15,427 20,399 20,182 20,366 20,292 3,988 3,933 3,626 3,566 3,990 4,021 3,699 3,719 10,156 10,081 10,330 10,260 2,265 2,147 2,711 2,747 51,406 50,711 50,950 51,091 5,407 5,152 5,143 5,048 35,132 34,822 34,901 35,091 1,864 1,837 1,853 1,845 9,003 8,900 9,053 9,107 .............. Feb. 6 .........................13 ....................... 20 ....................... 27 1,773 1,639 1,663 1,657 3,132 3,092 2,947 2,863 32,387 32,296 32,221 32,201 713 617 635 724 15,889 15,579 15,322 15,229 20,019 19,812 19,082 18,508 3,980 3,820 3,118 2,790 3,366 3.406 3.407 3,330 10,274 10,258 10,243 10,118 2,399 2,328 2,314 2,270 52,221 52,200 51,633 51,331 4,740 4,758 4,581 4,552 35,350 35,203 34.927 34,829 1,928 1,939 1,932 1,938 10,203 10,300 10,193 10,012 ..............Jan. 8 ........................ 15 .......................22 .......................29 1,433 1,659 1,408 1,424 2,798 2,769 2,811 2,714 32,085 32,036 31,953 31,890 713 735 763 748 15,356 15,024 15,126 15,089 18,419 18,385 19,222 18,915 2,720 2,879 2,986 2,995 3,436 10,006 2,257 51,474 3,383 9,870 2,253 51,367 3,067 10,657 2,512 51,610 3,049 10,452 2,419 51,470 4,508 4,427 4,458 4,472 34,784 34,814 34.928 34,940 1,918 1,925 1,979 2,032 10,264 10,201 10,245 10,026 ................Feb. 5* .......................12* .......................19* .......................26* 1975 For notes see p. A-24. A 22 WEEKLY REPORTING BANKS □ MARCH 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions o f dollars) Deposits ( Demand Wednesday Cash items in process of collec tion Re serves with F.R. Banks Cur rency and coin Bal ances with do mestic banks Invest ments in sub sidiar ies not consol idated Other assets Total assets/ total liabil ities Total IPC States and polit ical subdivi- Domestic interbank U.S. Govt. Com mer cial Mutual sav ings Large banks— Total 1974 31,677 37,855 38,014 31,481 21,644 24,102 23,935 21,251 4,016 4,366 4,467 4,459 11,891 13,788 12,924 11,621 1.429 1,426 1.429 1.429 21,188 21,354 21,605 21,708 463.252 473.253 473,564 464,008 157,344 163,592 162,933 155,685 108,003 111,108 113,261 109,164 6,424 6,370 6,594 6,011 4,700 3,466 2,610 3,242 23,545 26,603 25,572 22,786 769 655 685 594 8 ................... 15................... 22................... 29................... 32,438 34,809 30,355 28,271 21,304 25,141 29,437 23,492 5,042 4,910 4,884 4,888 12,048 11,711 10,846 10,781 1,649 1,681 1,673 1,653 31,879 32,103 32,617 32,840 512,036 513,288 505,678 495,507 164,446 165,874 155,438 152,838 117,693 118,990 112,595 110,564 6,409 6,474 6,108 5,999 1,571 1,656 2,601 2,007 24,797 23,843 21,054 20,630 834 745 677 635 5*................. 12?................. 19*................. 26*................. 32,332 31,745 36,489 30,463 25,636 25,455 21,411 23,501 4,219 4,643 4.772 4.773 11,278 11,566 11,912 10,850 1,689 1,691 1,705 1,696 33,440 33,207 33,583 33,647 505,622 502,710 507,246 496,695 159,563 153,918 160,690 153,830 113,147 112,549 115,209 112,830 6,396 5,943 6,499 6,222 2,767 1,448 1,566 1,450 22,882 21,153 23,643 20,707 748 665 628 613 11,692 16,318 13,391 11,765 5,815 7,786 7,307 6,021 486 529 511 499 5,792 7,423 6,756 5,512 656 656 660 660 5,941 5,795 6,298 6,224 110,130 117,250 114,293 110,342 46,027 50,829 48,138 45,718 23,287 23,975 24,683 23,782 322 345 386 319 962 608 335 599 11,984 14,909 13,047 11,600 432 332 346 299 Feb. 6 ................... 13................... 20................... 27................... Jan. Feb. 1975 New York City 1974 Feb. 6 ................... 13................... 20................. . 27................. . Jan. 8 ................... 15................... 22................... 29................... 10,970 12,906 11,156 10,963 6,357 7,653 9,385 6,189 576 568 544 550 4,813 5,264 4,641 4,662 756 758 757 764 11,145 11,341 11,459 11,747 128,828 131,898 128,130 124,544 46,839 48,942 44,411 44,729 26,020 26,696 25,238 25,164 322 410 287 338 155 252 489 332 12,073 12,347 10,308 10,226 463 416 475 355 Feb. 5*................. 12*................. 19*................. 26*................. 11,561 11,595 12,063 11,256 8,984 7,825 6.488 6.489 502 530 541 524 ,617 ,209 ,935 ,415 763 765 770 770 11,870 11,603 12,060 11,946 127,093 126,485 128,396 124,153 45,821 43,297 45,505 44,698 25,670 25,163 25,826 26,544 393 267 267 365 600 110 115 259 10,747 9,824 10,759 9,769 417 351 302 332 19,985 21,537 24,623 19,716 15,829 16,316 16,628 15,230 3,530 3,837 3,956 3,960 6,099 6,365 6,168 6,109 773 770 769 769 15,247 15,559 15,307 15,484 353,122 356,003 359,271 353,666 111,317 112,763 114,795 109,967 84,716 87,133 88,578 85,382 6,102 .6,025 6,208 5,692 3,738 2,858 2,275 2,643 11,561 11,694 12,525 11,186 337 323 339 295 1975 Outside New York City 1974 Feb. 6 ................... 13................... 20................... 27................... Jan. 8 ................... 15................. . 22................... 29................... 21,468 21,903 19,199 17,308 14,947 17,488 20,052 17,303 4,466 4,342 4,340 4,338 7,235 6,447 6,205 6,119 893 923 916 889 20,734 20,762 21,158 21,093 383,208 381,390 377,548 370,963 117,607 116,932 111,027 108,109 91,673 92,294 87,357 85,400 6,087 6,064 5,821 5,661 1,416 1,404 2,112 1,675 12,724 11,496 10,746 10,404 371 329 302 280 Feb. 5*................ 12*................ 19*................. 26*................ 20,771 20,150 24,426 19,207 16,652 17,630 14,923 17,012 3,717 4,113 4,231 4,249 6,661 6,357 6,977 6,435 926 926 935 926 21,570 21,604 21,523 21,701 378,529 376,225 378,850 372,542 113,742 110,621 115,185 109,132 87,477 87,386 89,383 86,286 6,003 5,676 6,232 5,857 2,167 1,338 1,451 1,191 12,135 11,329 12,884 10,938 331 314 326 281 1975 For notes see page A-24. MARCH 1975 □ WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions o f dollars) Deposits (cont.) IPC Foreign Govts., etc. 2 Com mer cial banks Borrowings from— Time and savings Demand (cont.) Certi fied and offi cers’ checks Total6 Sav ings Other States and polit ical subdivi- Domestic inter bank Fed eral For funds pur eign govts.2 chased, etc.7 F.R. Banks Others Other liabili ties, etc.8 Wednesday Large banks — Total 1974 1,552 1,139 1,313 1,224 4,160 4,351 4,831 4,481 8,191 9,900 8,067 8,183 192,627 192,602 192,450 192,829 56,911 56,955 57,055 57,145 98,488 98,607 98,446 99,016 23,521 23,362 23,349 23,460 5,136 4,971 4,.--4,654 7,988 8,106 8,073 7,906 52,448 54,016 56,828 53,885 592 2,262 840 940 5,508 5,376 5,078 5,353 17,564 18,211 18,301 18,213 6 ............................13 ............................20 ........................... 27 1,415 1,369 1.315 1.316 5,397 5,535 4,968 5,200 6,330 7,262 6,120 6,487 228,213 227,145 227,222 226,719 58,672 58,606 58,658 58,740 122,054 121,422 120,883 120,966 25,627 25,243 25,301 25,099 8,260 8,192 8,651 8,260 11,541 11,498 11,646 11,581 51,889 48,885 52,805 48,421 17 2,771 2,271 46 4,053 4,126 4,102 4,012 23,845 24,908 24,221 23,762 ................. Jan. 8 ............................15 ........................... 22 ........................... 29 1,270 1,291 1,116 1,233 4,927 5,119 5,018 4,975 7,426 5,750 7,011 5,800 225,582 225,927 224,305 224,192 58,977 59,217 59,474 59,687 120,105 120,370 118,898 118,512 24,979 25,318 25,194 25,323 7,841 7,266 7,055 7,136 11,597 11,706 11,716 11,613 52,935 55,493 53,982 50,847 34 1,053 759 3,804 3,765 3,625 3,664 23,734 23,528 23,622 23,416 ................... Feb. ................... Feb. 1975 5*> ........................... 12* .............................. I 9 p ............................26p New York City 1974 1,345 924 1,079 995 3,078 3,244 3,588 3,347 4,617 6,492 4,674 4,777 35,145 34,851 34,561 34,437 5,010 5,015 5,026 5,035 20,932 20,800 20,705 20,792 1,798 1,680 1,590 1,648 3,255 3,166 3,106 2,907 4,067 4,099 4,015 3,938 11,436 12,859 13,957 12,535 1,092 1,112 1,102 1,109 3,988 4,093 3,691 3,785 2,726 3,616 2,921 3,420 49,187 48,636 48,216 48,060 5,082 5,090 5,095 5,101 29,402 28,966 28,680 28,567 1,651 1,599 1,536 1,524 4,409 4,314 4,302 4,181 7.167 7,120 7,075 7.168 998 1,055 897 1,022 3,636 3,761 3,696 3,668 3,360 2,766 3,643 2,739 47,194 47,111 46,849 46,921 5,146 5,192 5,205 5,240 28,079 28,280 27,934 27,945 1,412 1,467 1,473 1 ,500 3,905 3,511 3,546 3,611 7,127 7,143 7,218 7.168 642 2,427 2,398 2,172 2,287 5,488 6,055 5,865 5,759 6 ............................13 ............................20 ............................27 12,750 11,341 13,712 11,653 1,440 1,445 1,385 1,566 1,562 1,526 8,261 9,580 8,384 8,160 ................. Jan. 8 ............................15 ............................22 ............................29 13,858 16,013 14,979 12,582 981 1,415 1,425 1,358 1,355 8,248 8,072 8,163 8,033 ........................... 12p ............................19p ........................... 26* ................... Feb. 1975 ................... Feb. 5p Outside New York City 1974 207 215 234 229 1,082 1,107 1,243 1,134 3,574 3,408 3,393 3,406 157,482 157,751 157,889 158,392 51,901 51,940 52,029 52,110 77,556 77,807 77,741 78,224 21,723 21,682 21,759 21,812 1,881 1,805 1,792 1,747 3,921 4,007 4,058 3,968 41,012 41,157 42,871 41,350 592 1,620 840 940 3,081 2,978 2,906 3,066 12,076 12,156 12,436 12,454 6 ........................... 13 ............................20 ............................27 323 257 213 207 1,409 1,442 1,277 1,415 3,604 3,646 3,199 3,067 179,026 178,509 179,006 178,659 53,590 53,516 53,563 53,639 92,652 92,456 92,203 92,399 23,976 23,644 23,765 23,575 3,851 3,878 4,349 4,079 4,374 4,378 4,571 4,413 39,139 37,544 39,093 36,768 17 1,331 826 46 2,668 2,560 2,540 2,486 15,584 15,328 15,837 15,602 ................. Jan. 8 ............................15 ........................... 22 ........................... 29 272 236 219 211 1,291 1,358 1,322 1,307 4,066 2,984 3,368 3,061 178,388 178,816 177,456 177,271 53,831 54,025 54,269 54,447 92,026 92,090 90,964 90,567 23,567 23,851 23,721 23,823 3,936 3,755 3,509 3,525 4,470 4,563 4,498 4,445 39,077 39,480 39,003 38,265 34 72 759 2,389 2,340 2,267 2,309 15,486 15,456 15,459 15,383 ...................Feb. ................... Feb. 1975 For notes see p. A-24. 5p ........................... 12* ........................... 19p ........................... 26 p A 24 WEEKLY REPORTING BANKS o MARCH 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions o f dollars) Reserves for— Wednesday Loans Secur ities Memoranda Total capital ac counts Total loans (gross) ad justed9 Total loans and De mand invest ments deposits ad (gross) ad justed 10 justed9 Large negotiable time CD’s included in time and savings deposits11 Total Issued to IPC’s Issued to others Gross liabili ties of banks to their Issued foreign to branches others All other large time deposits12 Total Issued to IPC’s Large banks— Total 191A 4,968 4,966 4,964 4,976 32,123 32,155 32,097 32,049 266,139 265,675 265,520 266,863 353,461 351,672 352,474 353,769 97,422 95,668 96,737 98,176 66,215 66,157 65,680 65,753 45,058 45,076 44,752 45,056 21,157 21,081 20,928 20,697 8 ................... 15................... 22................... 29................... 5,273 5,310 5,434 5,448 34,238 34,208 34,112 34,201 301,673 298,148 293,115 292,478 389,395 385,076 378,270 376,530 105,640 105,566 101,428 101,930 92,674 91,852 91,859 91,473 64,248 63,491 63,003 62,792 28,426 28,361 28,856 28,681 37,593 37,463 37,568 37,308 20,828 20,720 20,810 20,765 16,765 16,743 16,758 16,543 2,822 3,453 2,583 2,066 5*................. 12*................. 19*.................. 26*................. 5.560 5.561 5,554 5,568 34,375 34,424 34,355 34,359 293,127 290,028 292,214 289,461 377,067 101,582 374,463 99,572 377,968 98,992 374,642 101,210 90,185 90,083 88,459 87,790 62,012 62,309 60,933 60,358 28,173 27,774 27,526 27,432 37,058 36,963 36,556 36,910 20,600 20,321 20,066 20,168 16,458 16,642 16,490 16,742 2,230 1,937 1,868 1,870 1.360 1.361 1,357 1,370 8,247 8,255 8,243 8,236 61,705 61,297 60,988 61,782 77,222 76,401 76,626 77,305 21,389 18,994 21,365 21,754 21,016 20,853 20,541 20,362 14,034 13,985 13,867 13,866 6,982 6,868 6,674 6,496 Feb. 6 ................... 13................... 20................... 27................... Jan. Feb. 1,659 2,218 1,735 1,689 1975 New York C ity 1974 Feb. 6 ................... 13................... 20................... 27................... Jan. 8.................... 15................... 22................... 29................... 1,487 1,485 1,524 1,520 8,919 8,908 8,876 8,896 75, i 74,565 72,390 72,134 91,290 89,481 86,830 86,347 23,641 23,437 22,458 23,208 32,161 31,524 31,218 31,106 21,497 21,014 20,827 20,703 10,664 10,510 10,391 10,403 9,466 9,546 9,407 9,386 5,644 5,675 5,560 5,582 3,822 3,871 3,847 3,804 1,268 2,124 1,323 1,080 Feb. 5*.................. 12*................. 19*................. 26*................. 1,570 1.579 1,582 1.580 8.987 8.988 8,979 8,984 72,393 71,460 73,082 71,449 86,440 86,143 88,004 86,245 22,913 21,678 22,568 23,414 30,275 30,179 30,036 30,139 20,290 20,488 20,234 20,250 9,985 9,691 9,802 9,889 9,340 9,239 9,146 9,027 5,578 5,484 5,462 5,371 3,762 3,755 3,684 3,656 1,251 1.236 1.236 1,008 3,608 3.605 3,607 3.606 23,876 23,900 23,854 23,813 204,434 204,378 204,532 205,081 276,239 275,271 275,848 276,464 76,033 76,674 75,372 76,422 45,199 45,304 45,139 45,391 31,024 31,091 30,885 31,190 14,175 14,213 14,254 14,201 1,220 1,817 1,419 1,240 1975 Outside New York City 1974 Feb. 6 ................... 13................... 20................... 27................... Jan. 8 ................... 15................... 22................... 29................... 3,786 3,825 3,910 3,928 25,319 25,300 25,236 25,305 225,865 223,583 220,725 220,344 298,105 295,595 291,440 290,183 81,999 82,129 78,970 78,722 60,513 60,328 60,641 60,367 42,751 42,477 42,176 42,089 17,762 17,851 18,465 18,278 28,127 27,917 28,161 27,922 15,184 15,045 15,250 15,183 12,943 12,872 12,911 12,739 1,554 1,329 1,260 986 Feb. 5*................. 12*................. 19*................. 26*................. 3,990 3,982 3,972 3,988 25,388 25,436 25,376 25,375 220,734 218,568 219,132 218,012 290,627 288,320 289,964 288,397 78,669 77,804 76,424 77,796 59,910 59,904 58,423 57,651 41,722 41,821 40,699 40,108 18,188 18,083 17,724 17,543 27,718 27,724 27,410 27,883 15,022 14,837 14,604 14,797 12,696 12,887 12,806 13,086 979 701 632 862 439 401 316 449 1975 1 Includes securities purchased under agreements to resell. 2 Includes official institutions and so forth. 3 Includes short-term notes and bills. 4 Federal agencies only. 5 Includes corporate stocks. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 7 Includes securities sold under agreements to repurchase. 8 Includes minority interest in consolidated subsidiaries. 9 Exclusive of loans and Federal funds transactions with domestic com mercial banks. 10 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process of collection. 11 Certificates of deposit issued in denominations of $100,000 or more. 12 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD’s). MARCH 1975 o BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1975 Industry Feb. 26 Feb. 19 1974 Feb. 5 Feb. 12 Jan. 29 Durable goods manufacturing: 1,970 1,937 1,983 1,965 1.962 Primary metals................................. Machinery......................................... 8,312 8,315 8,291 8,252 8,312 3,943 3,869 3,906 3,846 3.822 Transportation equipment.............. 2,837 2,864 2,842 2,835 2,844 Other fabricated metal products. . . Other durable goods........................ 4,538 4,534 4,508 4,528 4,602 Nondurable goods manufacturing: 3,975 4,075 4,208 4,323 4,269 Food, liquor, and tobacco.............. 3,309 3,289 3,285 3,256 3,220 Textiles, apparel, and leather.......... 2,172 2,116 2,153 2,231 2,237 Petroleum refining........................... 3,366 3,377 3,321 3,300 3,283 Chemicals and rubber..................... 2,162 2,200 2,197 2,245 2,388 Other nondurable goods................. Mining, including crude petroleum 4,775 4,761 4,741 4,774 4.823 and natural gas........................... 1,613 1,591 1,598 1,644 1,713 Trade: Commodity dealers................. 6,090 6,121 6,141 6,165 6,201 Other wholesale....................... 6,378 6,388 6,377 6,364 6,500 Retail........................................ 6,202 6,178 6,145 6,153 6,202 Transportation..................................... 2,249 2,262 2,306 2,317 2,286 Communication................................... 7,636 7,791 7,793 7,845 7,898 Other public utilities........................... Construction......................................... 5,640 5,666 5,695 5,642 5,675 Services.................................................. 11,487 11,485 11,480 11,563 11,613 9,744 9,821 9,774 9,869 9.962 All other domestic loans..................... 2,399 2,321 2,097 2,025 1,859 Bankers’ acceptances........................... Foreign commercial and industrial 4,406 4,368 4,323 4,392 4,294 loans.............................................. Total classified loans........................... 105,203 105,329 105,164 105,534 105,965 Comm, paper included in total class, loans 1............................................ 1975 Feb. 1974 Jan. Dec. 1974 IV 2nd half III 1st half 121 -7 -6 4 -4 3 -429 10 -6 7 -257 70 -8 3 333 -1 4 -176 77 -127 365 -178 -265 63 349 340 253 512 -2 3 779 229 236 560 140 222 705 75 247 56 1,848 587 503 909 -294 89 -6 5 83 -226 -652 -290 -1 3 -9 9 -118 357 -3 3 6 318 92 55 484 -725 473 -5 5 -135 500 107 494 311 158 -344 339 67 355 222 984 -618 967 256 23 -2 2 0 909 -108 610 338 -4 8 -100 -111 -122 -214 -3 6 4 -527 -207 -184 -213 -720 -427 -341 -157 198 235 -5 8 163 -598 298 279 573 -297 144 150 19 556 703 349 -2 4 6 261 90 609 -276 171 374 309 290 -195 135 -219 22 -9 2 1,088 231 133 357 -365 75 -630 364 557 34 326 1,335 623 405 576 381 846 508 484 -465 283 -2 1,697 -4 5 304 731 -5 6 387 -273 829 1,099 139 475 1,044 594 594 1,117 443 112 67 -762 -5,047 -4 1 1,483 -249 2,565 -208 4,264 506 6,972 611 -457 6,829 12,491 -863 -4,4 4 3 1,692 2,886 4,795 7,659 7,681 ’ -3 7 -262 -3 5 -126 -218 540 428 Total commercial and industrial loans of large commercial banks.......... 125,987 126,083 126,468 126,850 13,491 For notes see table below. “TERM" COMMERCIAL AND INDUSTRIAL LOANS OF U R G E COMMERCIAL BANKS (In millions of dollars) Outstanding 1974 1975 Industry Feb. 26 Durable goods manufactur ing: Primary metals................... Machinery.......................... Transportation equipment. Other fabricated metal products......................... Other durable goods.......... Nondurable goods manufac turing : Food, liquor, and tobacco. Textiles, apparel, and leather............................. Petroleum refining............. Chemicals and rubber....... Other nondurable goods. . Mining, including crude pe troleum and natural gas. Trade: Commodity dealers.. Other wholesale........ Retail......................... Transportation....................... Communication..................... Other public utilities............. Construction.......................... Services................................... All other domestic loans . . . . Foreign commercial and in dustrial loans.................. Total loans............................. Jan. 29 1,237 4,117 1,713 1,249 4,138 1,737 1,326 2,269 1,246 2,301 Dec. 31 (Tues.) Nov. 27 Oct. 30 Sept. 25 1,210 4,151 1,681 1,176 4,049 1,586 1,107 3,970 1,570 1,133 3,896 1,535 1,195 2,431 1,113 2,361 1,093 2,339 1,066 2,268 Aug. 28 July 31 June 26 1,104 3,789 1,419 1,116 3,572 1,373 1,105 3,286 1,410 77 255 146 28 610 125 41 172 45 -4 0 248 81 105 865 271 1,000 2,198 996 2,169 954 2,107 129 163 112 161 43 192 17 143 241 324 IV II III 2nd half I 1,707 1,768 1,674 1,661 1,649 1,604 1,604 1,571 119 78 42 38 197 1,086 1,458 1,812 1,136 1,124 1,542 1,839 1,227 1,144 1,518 1,883 1,265 1,179 1,272 1,818 1,170 1,187 1,208 1,820 1,187 1,151 1,097 1,778 1,204 1,171 1,048 1,790 1,189 1,182 996 1,760 1,149 1,128 963 1,737 1,171 -7 421 105 61 23 134 41 33 39 18 134 32 86 12 42 57 16 555 146 94 3,448 153 1,420 2,296 4,509 1,152 3,870 2,193 5,393 3,144 3,449 169 1,469 2,379 4,455 1,161 3,885 2,224 5,327 3,045 3,b97 155 1,491 2,598 4,555 1,120 3,966 2,309 5,509 3,191 3,620 171 1,431 2,602 4,379 1,076 3,987 2,281 5,417 3,255 3,468 157 1,488 2,578 4,370 1,047 3,810 2,237 5,340 3,215 3,339 139 1,449 2,527 4,349 1,029 3,672 2,272 5,350 3,122 3,319 166 1,419 2,529 4,322 1,021 3,664 2,218 5,301 3,074 3,197 155 1,446 2,512 4,353 1,030 3,539 2,183 5,275 3,058 3,130 141 1,406 2,428 4,425 1,030 3,443 2,130 5,273 3,017 358 16 42 71 206 91 294 37 159 69 209 -2 43 99 -7 6 -1 229 142 77 105 -115 1 83 -5 2 8 64 289 232 197 209 287 13 133 274 97 106 -9 8 -7 27 206 567 14 85 170 130 90 523 179 236 174 2,544 2,524 2,445 2,473 2,487 2,401 2,500 2,565 2,548 44 -1 4 7 198 16 -103 47,896 48,197 49,282 48,090 47,339 46,426 45,845 45,230 44,403 2,856 2,023 1,872 1,738 4,879 160 weekly reporting banks are included in this series; these banks classify, by industry, commercial and industrial loans amount ing to about 90 per cent of such loans held by all weekly reporting banks and about 70 per cent of those held by all commercial banks. 1974 1,620 1 New item to be reported as of the last Wednesday of each month. N o t e . —About Net change during— For description of series see article “ Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 B u l l e t i n , p. 209. Commercial and industrial “term” loans are all outstanding loans with an original maturity of more than 1 year and all outstanding loans granted under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess of 1 year. A 26 DEMAND DEPOSIT OWNERSHIP □ MARCH 1975 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions o f dollars) Type of holder Class of bank, and quarter or month Total deposits, IPC Financial business Nonfinancial business Consumer Foreign All other 1970—Dec................................................................................. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar................................................................................ 18.3 18.1 17.9 18.5 86.3 89.6 91.5 98.4 54.4 56.2 57.5 58.6 1.4 1.3 1.2 1.3 10.5 10.5 9.7 10.7 170.9 175.8 177.9 187.5 1972—June............................................................................... Sept................................................................................ 17.9 18.0 18.9 97.6 101.5 109.9 60.5 63.1 65.4 1.4 1.4 1.5 11.0 11.4 12.3 188.4 195.4 208.0 1973—Mar................................................................................ June................................................................................ Sept................................................................................. Dec................................................................................. 18.6 18.6 18.8 19.1 102.8 106.6 108.3 116.2 65.1 67.3 69.1 70.1 1.7 2.0 2.1 2.4 11.8 11.8 11.9 12.4 200.0 206.3 210.3 220.1 1974—Mar................................................................................ June................................................................................ Sept................................................................................. Dec.®.............................................................................. 18.9 18.2 17.9 19.1 108.4 112.1 113.9 119.2 70.6 71.4 72.0 73.8 2.3 2.2 2.1 2.3 11.0 11.1 10.9 11.9 211.2 215.0 216.8 226.3 104.8 All insured commercial banks: Sept................................................................................. Dec................................................................................. Weekly reporting banks: 1971—Dec................................................................................. 14.4 58.6 24.6 1.2 5.9 1972—Dec................................................................................. 14.7 64.4 27.1 1.4 6.6 114.3 1973—Dec................................................................................. 14.9 66.2 28.0 2.2 6.8 118.1 1974—Feb................................................................................. Mar................................................................................. Apr................................................................................. May................................................................................ June................................................................................ July................................................................................. Aug................................................................................. Sept................................................................................. Oct.................................................................................. 14.1 14.7 14.7 14.2 14.1 14.4 14.1 13.9 14.7 14.6 14.9 62.1 61.5 62.2 62.3 63.4 63.5 62.6 64.4 64.6 65.9 66.8 26.9 27.6 29.6 28.0 28.1 28.5 28.0 28.4 28.2 28.5 29.0 2.3 2.1 2.1 2.1 2.0 2.1 1.9 2.0 2.0 2.1 2.3 6.2 6.3 6.2 6.1 6.3 6.5 5.8 6.3 6.4 6.5 6.8 111.5 112.1 114.7 112.7 113.9 115.1 112.5 115.0 115.8 117.7 119.8 1975—Jan.®............................................................................... 14.7 65.5 29.3 2.3 6.7 118.4 1 Including cash items in process of collection. N o t e . —Daily-average balances maintained during month as estimated from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 B u l l e t in , p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank All commercial.......................... Insured................................... National member.................. State member.................... .. All member.......................... Dec. 31, 1972 559 554 311 71 381 Dec. 31, 1973 507 503 288 64 352 June 30, 1974 460 457 265 65 330 Oct. 15, 1974 407 247 39 286 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the B u l l e t in for July 1972, p. 626. Categories shown here as “Other large” and “All other member” parallel the previous “Reserve City” (other than in New York City and the City of Chicago) and “Country” categories, respectively (hence the series are continuous over time). Class of bank All member—Cont. Other large banks 1........... All other member 1............ All nonmember........ . Noninsured......................... Dec. 31, 1972 69 313 177 172 5 Dec. 31, June 30, 1973 1974 58 294 155 152 3 63 267 130 127 3 Oct. 15, 1974 66 220 121 N o t e .—Hypothecated deposits, as shown in this table, are treated one way in monthly and weekly series for commercial banks and in another way in call-date series. That is, they are excluded from “Time deposits” and “Loans” in the monthly (and year-end) series as shown on pp. A-16; from the figures for weekly reporting banks as shown on pp. A-20-A-24 (consumer instalment loans); and from the figures in the table at the bottom of p. A-15. But they are included in the figures for “Time de posits” and “Loans” for call dates as shown on pp. A-16-A-19. MARCH 1975 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 27 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 By type of loaia Date Total Commercial and industrial Real estate All other 1974—Nov. 6 ......................... 13......................... 20......................... 27......................... 5,168 5,169 5,077 4,920 2,756 2,786 2,779 2,740 182 182 186 186 2,230 2,201 2,112 1,994 Dec. 4......................... 11......................... 18......................... 25......................... 4,775 4,765 4,837 4,901 2,568 2,592 2,678 2,821 178 182 182 180 2,029 1,991 1,977 1,900 1975—Jan. 1 ........................ 8 ......................... 15......................... 22......................... 29 r....................... 4,809 4,641 4,663 4,664 4,642 2,746 2,679 2,703 2,691 2,724 182 184 181 181 181 1,881 1,778 1,779 1,792 1,737 Feb. 5......................... 12......................... 19......................... 26......................... 4,475 4,609 4,510 4,468 2,630 2,755 2,661 2,630 181 175 174 179 1,664 1,679 1,675 1 ,659 1 To bank’s own foreign branches, nonconsolidated non bank affiliates of the bank, the bank’s holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. N o t e . — Series changed on Aug. 28,1974. For a comparison of the old and new data for that date, see p. 741 of the Oct. 1974 B u l l e t i n . Revised figures received since Oct. 1974 that affect that comparison are shown in note 2 to this table in the Dec. 1974 B u l l e t i n , p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial paper End of period Bank-related 5 Financial comoanies1 Non finan All cial issuers com Dealer- Di Dealer- Di placed2 rectly- panies4 placed rectlyplaced placed3 All other 3,134 1,997 2,022 2,090 2,717 3,674 4,057 997 1,086 1,423 1,889 2,601 829 989 952 1,153 1,561 1,778 2,241 2,053 2,408 2,895 524 1,226 1,449 1,411 7,889 6,898 3,480 2,706 2,689 2,006 791 700 261 106 254 179 3,894 3,907 2,834 2,531 1,546 1,909 3,509 2,458 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 9,771 10,794 9,250 9,697 10,046 9,968 10,562 10,885 12,659 14,003 14,532 12,694 1,960 1,923 2,137 2,270 1,978 1,579 1,465 2,425 2,185 2,046 1,947 1,874 3,541 3,606 3,908 4,564 5,106 5,373 5,585 6,350 6,446 6,408 6,697 6,444 9,101 9,364 10,166 10,692 11,727 13,174 15,686 16,167 16,035 16,882 *•17,553 18,484 2,706 2,854 2,986 3,232 3,089 3,535 3,499 3,388 3,347 3,291 3,789 4,226 2,251 2,328 2,413 2,744 2,642 3,066 2,983 2,866 2,942 2,872 3,290 3,685 454 525 573 488 447 469 516 522 405 419 499 542 68 69 296 216 373 304 218 277 504 218 611 999 589 592 684 700 732 795 1,023 1,202 1,459 2,037 1,702 981 5,738 5,850 6,200 6,544 7,532 8,540 10,947 11,300 10,724 11,335 '•11,452 12,278 2,334 2,434 2,827 2,900 2,952 3,287 3,589 3,585 3,526 3,793 3,810 4,023 3,492 3,275 3,182 3,748 2,979 4,361 2,833 4,959 2,899 5,876 3,219 6,668 3,774 8,323 3,933 8,649 3,806 8,703 3,759 9,330 3,709 ’-10,035 4,067 10,394 1971........... 1972........... 32,126 34,721 5,297 20,582 5,655 22,098 6,247 6,968 1 Financial companies are institutions engaged primarily in activities such as, but not limited to, commercial, savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities. 2 As reported by dealers; includes all financial company paper sold in the open market. Own acct. ImEx ports ports into from United United States States 191 156 109 146 250 1,160 352 45,491 47,164 44,690 44,677 46,171 44,846 45,561 47,967 49,087 51,754 51,883 49,070 Bills bought Others 193 164 58 64 57 757 2,111 2,774 5,356 7,133 1974-Jan... Feb... Mar... Apr... M ay.. June.. July.. Aug... Sept.. O ct... N o v .. D ec.. Own bills For eign corr. 215 459 200 249 735 10,556 12,184 13,972 20,741 20,424 29,353 29,169 28,869 28,752 30,426 29,908 30,344 31,774 31,095 32,509 32,491 31,765 Total F.R. Banks 983 1,447 1,344 1,318 1,960 2,332 2,790 4,427 6,503 5,514 5,487 27,204 Accepting banks 1,198 1,906 1,544 1,567 2,694 13,645 17,085 21,173 32,600 33,071 6,367 7,201 6,571 6,228 5,699 4,970 4,655 5,308 5,333 5,242 4,860 4,611 Total Based on- 3,603 4,317 4,428 5,451 7,058 196 6 196 7 196 8 196 9 1970........... 1973-Dec... 41,073 Held b y - 3 As reported by financial companies that place their paper directly with investors. 4 Nonfinancial companies include public utilities and firms engaged primarily in activities such as communications, construction, manufac turing, mining, wholesale and retail trade, transportation, and services. 5 Included in dealer- and directly-placed financial company columns. A 28 INTEREST RATES □ MARCH 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate 1974—Apr. 11 3. IOb-IOV io- 19, 10-IO1/10- 10b 10% 25. 26. 30. 2. 3. 6. 7. 10. 13. 17. 20. ll« /io 11% B-11% 118/10 11% -11% B 118/10 104/10IOI/2 ■1034-11 10%B- July 3 lOi/i-lOVio1034 B -ll 106/1O-1034. -11 106/lfr-103411m 11a 11 11a 18 10 - 10 14 - 10%B Dec. 2, 934 - 10 -10 14 1975—Jan. 9, 91/ 2 - 10 1014 b - Oct. 10 34 -1 ll/i l l % b-12 IO34- H 14 11% H3» 4 1034 - 1 1 1 4 - — 10%B 13, 20 28 29 21, 11% b- i i % 814 - 8% b 1034b 1034-11% 1134-12B -111/2* 3 10%- Sept. 26 7. 8% -834 b-9 8% b-83/4 1034 b 25, 11*/1 2 b 0-1 12b-1214 1034-1 2 b1214 15, 834-9-914■9%-934 83^-9-914b 834-9b 10 - 10 14 - 1034-12 b 1 1 14 * - 114/10 l l i 4 - l l - 4/io Mar. Rate 11 10-10%- 19, 3 4, 10 18 24 10%-1034 b Aug. 20 11-l li4« 1975—Feb. 1034-1 1bI I 1/4 10% -1034- 14 12 5 9 23 IO610 / - Nov. 4 liy4m-ll*lu liy4»-U*lio- 28, 1034-11- Effective date 11%«11% 11% 1114 - 1 1 %b 11% .-1134 26, 101/2- 1034-11 May H 3 4 1114- I I %■- 25, 10%B-10VlO 10%B10*1x010 % 1 014- 104/10- Rate 11V4«-11«/io- 1974—Oct. 28, 10, 21, 24, 10% . Apr. 23. 24. Effective date 7. 1974—June 934-98/10- 15 Rate Effective date 10% 91/ 2- 934 - 10 101/ 4 B 91/ 2- 934 1 Ob- 1 014 15 9%-934 B-10 9 % b-934-10 9%b-934 !!%■ 113/4 N ote.—Beginning Nov. 1971, several banks adopted a floating prime rate keyed to money market variables, b denotes the predominant prime rate quoted by commercial banks to large businesses. Effective Apr. 16, 1973, with the adoption of a two tier or “dual prime rate,” this table shows only the “large-business prime rate,” which is the range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 10-99 1-9 100-499 500-999 1,000 and over Center Nov. 1974 Aug. 1974 Nov. 1974 Aug. 1974 Nov. 1974 Aug. 1974 Nov. 1974 Aug. 1974 Nov. 1974 Aug. 1974 Nov. 1974 Aug. 1974 12.60 12.85 13.34 12.68 11.84 12.02 12.30 11.80 11.56 12.34 11.77 11.62 11.74 11.56 12.49 12.35 13.29 12.49 11.84 12.15 12.33 11.44 11.21 11.91 11.53 11.62 11.36 11.32 12.34 12.32 13.05 12.25 12.00 11.99 12.07 12.47 12.60 12.04 12.45 11.03 13.03 12.53 11.60 11.77 11.75 11.79 10.98 11.82 11.57 12.35 12.58 11.57 12.06 11.74 12.57 12.49 11.56 11.57 12.50 11.72 11.25 12.06 11.33 12.48 12.46 12.49 12.87 13.27 12.88 12.31 12.30 12.72 12.60 12.27 11.69 12.06 11.82 11.71 12.02 11.55 11.75 12.02 12.68 11.60 12.59 12.26 12.20 12.70 11.06 12.41 13.43 12.23 11.93 12.61 12.44 17.29 12.49 12.06 13.03 13.81 13.01 13.40 8.30 14.22 12.32 Short-term 35 centers..................................... New York City........................ 7 Other Northeast................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 11.64 11.35 12.22 11.66 11.52 11.56 11.48 12.40 12.38 13.17 12.36 11.85 11.95 12.15 11.81 12.31 13.03 11.54 11.44 10.87 12.26 11.74 12.14 13.07 11.25 11.41 10.83 12.38 12.04 12.11 12.84 11.99 11.34 11.64 11.99 12.34 12.82 13.20 12.42 11.60 11.62 12.29 11.97 12.05 12.46 11.93 11.43 11.77 11.86 Revolving credit 35 centers..................................... New York City........................ 7 Other Northeast................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 11.60 11.60 12.26 11.82 11.53 12.06 11.39 12.46 12.48 12.38 12.72 12.44 12.81 12.35 12.71 12.25 12.08 13.34 i 3.03 12.70 12.06 12.72 13.60 12.38 9.54 12.74 12.69 12.00 11.97 11.98 12.29 11.41 12.33 11.89 12.45 12.49 12.86 12.31 11.42 12.43 12.60 11.99 11.89 11.68 12.57 13.09 12.28 11.68 Long-term 35 centers..................................... New York City........................ 7 Other Northeast................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 12.16 11.96 12.35 12.29 13.81 12.27 12.01 13.08 13.65 12.74 13.12 10.27 13.43 12.41 11.74 8.87 12.66 10.90 11.21 12.39 12.75 11.76 10.43 12.70 11.27 11.05 12.09 11.38 12.04 11.45 12.52 11.89 11.45 12.18 11.99 12.03 12.56 11.83 11.47 10.83 12.84 13.09 12.09 12.37 11.98 11.90 12.14 12.28 12.04 MARCH 1975 □ INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) Prime commercial paper1 Period 90-119 days 4 to 6 months U.S. Government securities5 Finance Prime bankers paper placed accept ances, directly, 3 to 6 90 days 3 months2 CO. Fed eral funds rate4 3-month bills6 Rate on new issue Market yield 6-month bills6 Rate on new issue Market yield 9-to 12-month issues 1-year bill (mar Other 7 ket yield)6 3- to 5year issues 7 5.10 5.90 7.83 1967. 1968. 1969. 4.89 5.69 7.16 4.75 5.75 7.61 4.22 5.66 8.21 4.321 5.339 6.677 4.29 5.34 6.67 4.630 5.470 6.853 4.61 5.47 6.86 4.71 5.46 6.79 4.84 5.62 7.06 5.07 5.59 6.85 1970. 1971. 1972. 1973. 1974. 4.66 8.20 10.05 7.72 5.11 4.69 8.15 9.87 7.23 4.91 4.52 7.40 8.62 7.31 4.85 4.47 8.08 9.92 7.17 4.66 4.44 8.74 10.51 6.458 4.348 4.071 7.041 7.886 6.39 4.33 4.07 7.03 7.84 6.562 4.511 4.466 7.178 7.926 6.51 4.52 4.49 7.20 7.95 6.49 4.67 4.77 7.01 7.71 6.90 4.75 4.86 7.30 8.25 7.37 5.77 5.85 6.92 7.81 1974—Feb.. Mar.. Apr.. May. June. July.. Aug.. Sept.. O ct.. Nov.. Dec.. 8.00 8.64 9.92 10.82 11.18 11.93 11.79 11.36 9.55 8.95 9.18 7.83 8.42 9.79 10.62 10.96 11.72 11.65 11.23 9.36 8.81 8.98 7.40 7.76 8.43 8.94 9.00 9.00 9.31 9.41 9.03 8.50 8.50 7.83 8.43 9.61 10.68 10.79 11.88 12.08 11.06 9.34 9.03 9.19 8.97 9.35 10.51 11.31 11.93 12.92 12.01 11.34 10.06 9.45 8.53 7.060 7.986 8.229 8.430 8.145 7.752 8.744 8.363 7.244 7.585 7.179 7.12 7.96 8.33 8.23 7.90 7.55 8.96 8.06 7.46 7.47 7.15 6.874 7.829 8.171 8.496 8.232 8.028 8.853 8.599 7.559 7.551 7.091 6.96 7.83 8.32 8.40 8.12 7.94 9.11 8.53 7.74 7.52 7.11 6.51 7.34 8.08 8.21 8.16 8.04 8.88 8.52 7.59 7.29 6.79 6.93 7.86 8.66 8.78 8.71 8.89 9.54 8.95 8.04 7.67 7.33 6.77 7.33 7.99 8.24 8.14 8.39 8.64 8.38 7.98 7.65 7.22 1975—Jan... Feb.. 7.39 6.36 7.30 6.33 7.31 6.24 7.54 6.35 7.13 6.24 6.493 5.583 6.26 5.50 6.525 5.674 6.36 5.62 6.27 5.56 6.74 5.97 7.29 6.85 8.95 9.00 8.94 8.88 9.00 8.83 8.88 8.81 8.73 8.81 8.53 8.50 8.50 8.50 8.50 8.95 8.83 8.93 9.00 9.41 9.72 9.63 9.37 9.34 9.46 7.892 7.880 7.604 7.528 7.328 7.95 7.66 7.26 7.46 7.45 7.766 7.857 7.552 7.427 7.369 7.86 7.65 7.39 7.42 7.57 7.51 7.38 7.29 7.19 7.26 8.02 7.81 7.63 7.55 7.62 7.98 7.83 7.67 7.53 7.50 9.23 8.95 9.20 9.28 9.05 8.78 9.00 9.06 8.50 8.50 8.50 8.50 9.55 9.03 9.03 9.16 9.02 8.86 8.72 8.45 7.524 7.172 7.058 6.963 7.44 7.24 6.92 7.01 7.564 6.911 6.858 7.032 7.34 7.04 6.99 7.11 7.15 6.79 6.56 6.67 7.65 7.26 7.16 7.26 7.46 7.16 7.06 7.17 9.13 7.95 7.63 6.85 8.84 7.83 7.53 6.85 8.47 7.98 7.65 6.78 9.08 8.33 7.66 7.03 7.35 7.70 7.22 7.17 7.113 6.698 6.678 6.369 6.96 6.59 6.54 5.98 7.101 6.682 6.646 6.373 6.99 6.64 6.54 6.14 6.70 6.45 6.44 6.15 7.17 6.91 6.95 6.66 7.26 7.23 7.32 7.36 22.. 6.55 6.50 6.38 6.31 6.48 6.45 6.34 6.28 6.38 6.25 6.25 6.25 6.59 6.34 6.47 6.26 6.99 6.46 6.28 6.29 5.606 5.669 5.800 5.408 5.68 15.. 5.61 5.65 5.25 5.825 5.736 5.800 5.483 5.92 5.65 5.70 5.43 5.87 5.51 5.60 5.44 6.31 5.95 6.06 5.84 7.23 6.91 6.92 6.71 1.. 6.25 6.25 6.24 6.35 6.15 5.455 5.47 5.675 5.66 5.67 6.04 6.83 Week ending— 1974—Nov. 2., 9.. 16.. 23.. 30.. Dec. 7., 14.. 21.. 28.. 1975—Jan. 4.. 11.. 18.. 25.. Feb. Mar. 1.. 8.. 1 Averages of the most representative daily offering rate quoted by dealers. 2 Averages of the most representative daily offering rate published by finance companies, for varying maturities in the 90-179 day range. 3 Beginning Aug. 15, 1974., the rate is the average of the midpoint of the range of daily dealer closing rates offered for domestic issues; prior data are averages of the most representative daily offering rate quoted by dealers. 4 Seven-day averages for week ending Wednesday. Beginning with statement week ending July 25, 1973, weekly averages are based on the daily average of the range of rates on a given day weighted by the volume of transactions at these rates. For earlier statement weeks, the averages were based on the daily effective rate—the rate considered most repre sentative of the day’s transactions, usually the one at which most trans actions occurred. 5 Except for new bill issues, yields are averages computed from daily closing bid prices. 6 Bills quoted on bank-discount-rate basis. 7 Selected note and bond issues. N o t e . —Figures for Treasury bills are the revised series described on p. A-35 of the Oct. 1972 B u l l e t i n . A 30 INTEREST RATES □ MARCH 1975 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds State and local United States (long term) Period Aaa utility Stocks By selected rating Dividend/ price ratio By group Earnings / price ratio Total l Baa Total i New issue Re cently offered Aaa Baa Indus trial Rail road Public utility Pre ferred Com mon Com mon 6.46 5.41 5.50 7.12 Seasoned issues 197 2 1973 197 4 6.59 5.74 5.63 6.30 6.99 6.42 5.62 5.30 5.22 6.19 6.12 5.22 5.04 4.99 5.89 6.75 5.89 5.60 5.49 6.53 8.68 7.62 7.31 7.74 9.33 8.71 7.66 7.34 7.75 9.34 8.51 7.94 7.63 7.80 8.98 8.04 7.39 7.21 7.44 8.57 9.11 8.56 8.16 8.24 9.50 8.26 7.57 7.35 7.60 8.78 8.77 8.38 7.99 8.12 8.98 8.68 8.13 7.74 7.83 9.27 7.22 6.75 7.27 7.23 8.23 3.83 3.14 2.84 3.06 4.47 1974— Fe b Mar........ Apr......... May. . . . June July........ Aug........ Sept........ Oct......... Nov........ Dec......... 6.54 6.81 7.04 7.07 7.03 7.18 7.33 7.30 7.22 6.93 6.78 5.25 5.44 5.76 6.06 6.17 6.70 6.70 6.77 6.56 6.54 7.04 5.05 5.20 5.45 5.89 5.95 6.34 6.38 6.49 6.21 6.06 6.65 5.49 5.71 6.06 6.30 6.41 7.10 7.10 7.18 6.99 7.01 7.50 8.12 8.46 8.99 9.24 9.38 10.20 10.07 10.38 10.16 9.21 9.53 8.23 8.44 8.95 9.13 9.40 tO. 04 10.19 10.30 10.23 9.34 9.56 8.17 8.27 8.50 8.68 8.85 9.10 9.36 9.67 9.80 9.60 9.56 7.85 8.01 8.25 8.37 8.47 8.72 9.00 9.24 9.27 8.89 8.89 8.59 8.65 8.88 9.10 9.34 9.55 9.77 10.12 10.41 10.50 10.55 8.01 8.12 8.39 8.55 8.69 8.95 9.16 9.44 9.53 9.30 9.23 8.27 8.35 8.51 8.73 8.89 9.08 9.30 9.46 9.64 9.59 9.59 8.33 8.44 8.68 8.86 9.08 9.35 9.70 10.11 10.31 10.14 10.02 7.47 7.56 7.83 8.11 8.25 8.40 8.61 8.93 8.78 8.60 8.78 3.81 3.65 3.86 4.00 4.02 4.42 4.90 5.45 5.38 5.13 5.43 1975—Ja.............n 6.68 Feb.......... 6.61 6.89 6.40 6.39 5.96 7.45 7.03 9.36 8.97 9.45 9.09 9.55 9.33 8.83 8.62 c10.62 10.43 9.19 9.01 9.52 9.32 10.10 9.83 8.41 8.07 5.07 4.61 6.77 6.68 6.66 6.69 7.07 7.01 6.97 6.75 6.70 6.60 6.55 6.10 7.55 7.50 7.50 7.40 9.62 9.38 9.45 9.67 9.45 9.55 9.47 9.60 9.60 9.56 9.52 8.93 8.91 8.84 8.78 10.62 10.63 10.63 10.62 9.26 9.24 9.17 9.16 9.58 9.55 9.54 9.52 10.13 10.17 10.15 10.07 8.89 8.62 8.25 8.27 5.37 5.25 5.10 5.14 6.67 6.59 6.58 6.63 6.63 6.36 6.31 6.43 6.00 5.90 5.85 6.00 7.30 7.00 6.95 7.05 9.00 8.89 9.02 9.04 9.21 9.12 9.10 9.08 9.48 9.42 9.35 9.29 8.74 8.68 8.63 8.58 10.59 10.52 10.46 10.39 9.16 9.11 9.02 8.97 9.46 9.39 9.33 9.30 10.00 9.95 9.87 9.79 8.56 8.17 8.07 8.00 4.79 4.68 4.63 4.54 6.64 6.51 6.10 7.10 8.94 9.06 9.26 8.57 10.32 8.95 9.26 9.73 8.02 4.58 13 20 121 20 30 41 30 40 14 500 197 0 197 1 8.96 10.30 ri4!62* Week ending— 1975—Jan. 4. 11. 18. 25. Feb. Mar. 1 Number of issues2. . . 1 Includes bonds rated Aa and A, data for which are not shown sep arately. Because of a limited number of suitable issues, the number of corporate bonds in some groups has varied somewhat. As of Dec. 23, 1967, there is no longer an Aaa-rated railroad bond series. 2 Number of issues varies over time; figures shown reflect most recent count. N o t e .— A n n u a l y ield s a re a v e ra g e s o f w eek ly , m o n th ly , o r q u a rte rly d a ta . Bonds: Monthly and weekly yields are computed as follows: (1) U.S. Govt.: Averages of daily figures for bonds maturing or callable in 10 years or more; from Federal Reserve Bank of New York. (2) State and local 500 govt., general obligations only, based on Thurs. figures, from Moody’s Investors Service. (3) Corporate, rates for “New issue” and “ Recently offered” Aaa utility bonds, weekly averages compiled by the Board of Governors of the Federal Reserve System and rates for seasoned issues, averages of daily figures from Moody’s Investors Service. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures. Earnings /price ratios as of end of period. Preferred stock ratio based on 8 median yields for a sample of noncallable issues—12 industrial and 2 public utility. Common stock ratios on the 500 stocks in the price index. Quarterly earnings are seasonally adjusted at annual rates. NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: N o t e . —Annual data are averages of weekly or monthly figures. Monthly and weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market yields in table on p. A-30 on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, derived from average yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks , derived from com ponent common stock prices. Average daily volume o f trading, normally conducted 5 days per week for 5l/ i hours per day, or 21 lA hours per week. In recent years shorter days and/or weeks have cut total weekly trading to the following number of hours: Stock Market Customer Financing: 1 Margin credit includes all credit extended to purchase or carry stocks or related equity instruments and secured at least in part by stock (see Dec. 1970 B u l l e t i n ) . Credit extended by brokers is end-of-month data for member firms of the New York Stock Exchange. June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which ac counted for 60 per cent of security credit outstanding at banks on June 30, 1971. 2 In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of over the counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. MARCH 1975 a SECURITY MARKETS A 31 SECURITY PRICES Common stock prices New York Stock Exchange Bond prices (per cent of par) Standard and Poor’s index (1941-43=10) Period U.S. Govt. (long term) State and local 60.52 67.73 68.71 62.80 57.45 1974— Fe b 1975— Ja......... n New York Stock Exchange index (Dec. 31, 1965 = 50) Volume of Amer trading in ican stocks Stock (thousands of Ex shares) change total index (Aug. 31, 1973= NYSE AMEX 100) Rail road Public utility Total Indus Trans Utility porta trial tion Fi nance 72.3 80.0 84.4 85.4 76.3 61.6 83.22 91.29 65.0 98.29 108.35 65.9 109.20 121.79 63.7 107.43 120.44 58.8 82.85 92.91 32.13 41.94 44.11 38.05 37.53 54.48 59.33 56.90 53.47 38.91 45.72 54.22 60.29 57.42 43.84 48.03 57.92 65.73 63.08 48.08 32.14 44.35 50.17 37.74 31.89 37.24 39.53 38.48 37.69 29.82 54.64 70.38 78.35 70.12 49.67 96.63 10,532 113.40 17,429 129.10 16,487 103.80 16,374 79.97 13,883 3,376 4,234 4,447 3,004 1,908 60.83 58.70 57.01 56.81 57.11 55.97 54.95 55.13 55.69 57.80 58.96 85.3 83.5 80.2 77.3 76.2 71.9 71.6 71.0 72.7 72.6 68.6 62.0 61.3 60.3 59.7 59.5 58.5 57.6 56.2 55.9 56.3 56.1 93.45 97.44 92.46 89.67 89.79 82.82 76.03 68.12 69.44 71.74 67.07 104.13 108.98 103.66 101.17 101.62 93.54 85.51 76.54 77.57 80.17 74.80 41.85 42.57 40.26 37.04 37.31 35.63 35.06 31.55 33.70 35.95 34.81 48.13 47.90 44.03 39.35 37.46 35.37 34.00 30.93 33.80 34.45 32.85 50.01 52.15 49.21 47.35 47.14 43.27 39.86 35.69 36.62 37.98 35.41 54.02 56.80 53.95 52.53 52.63 48.35 44.19 39.29 39.81 41.24 38.32 36.26 38.39 35.87 33.62 33.76 31.01 29.41 25.86 27.26 28.40 26.02 35.27 35.22 32.59 30.25 29.20 27.50 26.72 24.94 26.76 27.60 26.18 62.81 64.47 58.72 52.85 51.20 44.23 40.11 36.42 39.28 41.89 39.27 95.11 99.10 93.57 84.71 82.88 77.92 74.97 65.70 66.78 63.72 59.88 13,517 14,745 12,109 12,512 12,268 12,459 12,732 13,998 16,396 14,341 15,007 2,079 2,123 1,752 1,725 1,561 1,610 1,416 1,808 1,880 1,823 2,359 59.70 60.27 70.9 74.1 56.4 56.6 72.56 80.10 80.50 89.29 37.31 37.80 38.19 40.37 38.56 42.48 41.29 46.00 28.12 30.21 29.55 31.31 44.85 47.59 68.31 19,661 76.08 22,311 2,117 2,545 22, 197 197 197 197 197 Indus trial 59.83 60.44 60.54 60.13 72.6 74.6 75.1 74.1 56.5 56.7 56.5 56.6 76.37 78.31 79.87 81.80 84.84 87.16 88.98 91.28 38.29 37.28 37.71 38.12 39.74 40.29 40.78 40.80 40.60 42.58 41.97 43.32 43.61 44.85 45.84 47.07 29.60 29.67 30.14 30.75 30.60 31.07 31.48 31.71 47.34 48.39 48.12 47.51 73.51 74.44 75.65 77.08 29,138 25,673 22,167 23,221 2,978 2,838 2,353 2,958 1, 60.00 72.7 56.5 80.74 90.15 38.14 39.84 42.69 46.46 30.40 31.07 46.33 76.78 18,568 2,112 0 1 2 3 4 M a r.... A pr.. . . May June Ju ly .... Aug___ Sept.... Oct....... Nov.. . . Dec. Feb___ Cor porate AAA Total Week ending— 1975— Feb. 1 8 15, Mar. For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 End of period By source By type Margin stock Total Unregu lated 3 Brokers Banks Convertible bonds Subscription issues Brokers Banks Brokers Banks Brokers Banks Nonmargin stock credit at banks Free credit balances at brokers 4 Margin accts. Cash accts. 6,382 5,251 1,131 5,050 1,070 189 46 12 15 1,866 454 1,700 1974—Jan...................................... 6,343 Feb..................................... 6,462 6,527 Apr.................................... 6,567 6,381 June................................... 6,297 July.................................... 5,948 Aug.................................... 5,625 Sept.................................... 5,097 Oct..................................... 4,996 Nov.................................... Dec.................................... 5,323 5,423 5,519 5,558 5,361 5,260 4,925 4,672 3,173 4,080 4,103 3,980 1,020 1,039 1,008 1,009 1,020 1,037 1,023 953 924 916 5,130 5,230 5,330 5,370 5,180 5,080 4,760 4,510 4,020 3,930 3,960 3,840 961 977 944 952 963 991 978 912 881 872 182 183 180 179 172 172 158 156 148 145 139 137 45 46 48 44 44 34 33 29 31 32 11 10 9 9 9 8 7 6 5 5 4 3 14 16 16 13 13 12 12 12 12 12 1,845 1,843 1,869 1,868 1,858 2,072 2,091 2,119 2,060 2,024 445 420 425 415 395 395 402 429 437 431 410 411 1,666 1,604 1,583 1,440 1,420 1,360 1,391 1,382 1,354 1,419 1,447 1,424 1975—Jan..................................... 4,086 410 1,446 1973—Dec.................................... For notes see opposite page. 3,950 134 2 A 32 S TO C K M A R K ET C R E D IT; S A V IN G S IN S T IT U T IO N S □ M ARCH 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) End of period 1974—Jan... Feb... Mar.. A p r.. M ay. June. July.. Aug.. Sept.. Oct... Nov.. D ec.. Equity class (per cent) Total debt (mil lions of dol lars) l Net credit status End of period 80 or more 70-79 60-69 50-59 40-49 Under 40 5,130 5,230 5,330 5,370 5,180 5,080 4,760 4,510 4,020 3,930 3,960 3,840 5.5 5.4 5.0 4.4 4.2 4.0 4.0 3.5 3.5 4.6 4.2 4.3 8.0 7.4 7.0 6.0 5.1 5.0 4.8 4.0 3.9 5.5 5.1 4.6 14.2 13.3 11.4 9.9 8.5 7.7 7.9 6.6 6.1 9.4 8.5 8.8 22.6 22.6 19.4 16.5 13.7 12.6 13.3 11.2 10.2 16.8 14.8 13.9 25.8 28.0 30.2 26.5 23.3 21.8 22.2 18.4 18.0 27.3 24.4 23.0 24.0 23.3 27.1 37.0 45.3 49.1 47.9 56.3 58.3 36.4 42.8 45.4 1975—Ja n . . 3,950 5.6 7.3 13.5 24.6 28.1 Equity class of accounts in debit status Total balance (millions) 60 per cent Less than of dollars or more 60 per cent 21.2 1 Note 1 appears at the bottom of p. A-30. N o t e . —Each customer’s equity in his collateral (market value of col lateral less net debit balance) is expressed as a percentage of current col lateral values. 1974—Jan....................... Feb....................... Dec....................... 38.3 39.4 40.0 39.6 37.8 40.3 40.2 39.9 40.7 40.9 40.0 41.1 42.7 43.3 41.2 42.3 40.0 37.4 36.5 34.0 31.2 35.1 34.6 32.4 18.0 24.9 18.9 19.4 22.2 22.4 23.2 26.0 27.0 24.0 25.3 26.5 6,596 6,740 6,784 6,526 6,544 6,538 6,695 6,783 7,005 7,248 6,926 7,013 1975—Jan....................... 41.1 39.3 19.8 7,185 July...................... N o t e . —Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other collateral in the customer’s margin account or deposits of cash (usually sales proceeds) occur. MUTUAL SAVINGS BANKS (In millions of dollars) Securities Loans End of period 1970............... 1971............... 19723............. 1973............... Mort gage 57,775 62,069 67,563 73,231 Other 2,255 2,808 2,979 3,871 U.S. Govt. 3,151 3,334 3,510 2,957 State and local govt. 197 385 873 926 Total assets— Total Other liabili ties assets and general reserve accts. Depos its 1,270 1,389 1,644 1,968 1,471 78,995 1,711 89,369 2,117 100,593 2,314 106,651 71,580 81,440 91,613 96,496 1,690 1,810 2,024 2,566 5,726 6,118 6,956 7,589 Corpo Cash rate and other1 12,876 17,674 21,906 21,383 Mortgage loan commitments 2 classified by maturity (in months) Other General liabili reserve ac ties counts 3 or less 3-6 619 1,047 1,593 1,250 322 627 713 598 6-9 Over 9 Total 302 688 1,931 463 1,310 3,447 609 1,624 4,539 405 1,008 3,261 1973—D ec.... 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7,589 1,250 598 405 1,008 3,261 73,440 73,647 73,957 74,181 74,011 74,281 74,541 74,724 74,790 74,835 74,913 74,890 4,161 4,584 4,825 4,425 4,388 4,274 4,311 4,031 4,087 3,981 4,226 3,790 2,925 2,846 2,851 2,852 2,750 2,758 2,650 2,604 2,574 2,525 2,553 2,565 936 942 934 951 893 880 884 879 876 870 877 925 1,686 1,618 1,634 1,601 1,656 1,651 1,402 1,334 1,303 1,303 1,406 2,150 2,312 2,316 2,373 2,347 2,355 2,488 2,487 2,519 2,573 2,608 2,633 2,683 107,083 107,877 108,876 108,722 108,295 108,654 108,660 108,383 108,420 108,313 108,809 109,498 96,792 97,276 98,557 98,035 97,391 98,190 97,713 97,067 97,425 97,252 97,582 98,636 2,665 2,919 2,595 2,943 3,173 2,688 3,144 3,475 3,089 3,158 3,291 2,897 7,626 7,681 7,724 7,744 7,731 7,776 7,803 7,841 7,906 7,904 7,936 7,965 1,171 1,232 1,302 1,214 1,129 1,099 990 949 932 775 724 664 587 562 525 584 608 602 586 496 382 374 398 418 439 998 3,196 952 3,153 407 413 929 3,168 401 994 3,193 400 1,014 3,151 328 1,001 3,031 316 1,076 2,968 417 977 2,839 450 904 2,668 792 2,301 360 317 743 2,182 232 726 2,040 1974—J a n .... F eb .... M a r... Apr.. . . M ay... June... Ju ly ... Aug---Sept.. . Oct---N ov.... Dec__ 21,623 21,923 22,302 22,366 22,241 22,324 22,383 22,292 22,218 22,190 22,201 22,496 1 Also includes securities of foreign governments and international organizations and nonguaranteed issues of U.S. Govt, agencies. 2 Commitments outstanding of banks in New York State as reported to the Savings Banks Assn. of the State of New York. Data include building loans. 3 Balance sheet data beginning 1972 are reported on a gross-of-valuation-reserves basis. The data differ somewhat from balance sheet data previously reported by National Assn. of Mutual Savings Bank, which were net of valuation reserves. For most items, however, the differences are relatively small. N o t e . — N A M S B data; figures are estimates for all savings banks in the United States and differ somewhat from those shown elsewhere in the B u l l e t i n ; the latter are for call dates and are based on reports filed with U.S. Govt, and State bank supervisory agencies. MARCH 1975 □ S A V IN G S IN S T IT U T IO N S A 33 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Total assets End of period Total Business securities United State and Foreign 1 Total States local Bonds Stocks Mort gages Real estate Policy loans Other assets 1970. 1971, 1972. 1973, 207,254 222,102 239,730 252,436 11,068 11,000 11,372 11,403 4,574 4,455 4,562 4,328 3,306 3,363 3,367 3,412 3,188 88,518 3,182 99,805 3,443 112,985 3,663 117,715 73,098 79,198 86,140 91,796 15,420 20,607 26,845 25,919 74,375 75,496 76,948 81,369 6,320 6,904 7,295 7,693 16,064 17,065 18,003 20,199 10,909 11,832 13,127 14,057 1973--N ov.............................. Dec............................... 251,178 252,436 11,574 11,403 4,514 4,328 3,404 3,412 3,656 118,100 3,663 117,715 92,265 91,796 25,835 25,919 80,371 81,369 7,771 7,693 20,039 20,199 13,323 14,057 1974--Jan ................................ Feb............................... Mar.............................. Apr............................... M ay............................. June............................. July............................... Aug.............................. Sept.............................. Oct............................... Nov.............................. 253,531 254,739 255,847 256,583 257,518 258,398 259,187 258,951 258,668 261,778 262,738 11,465 11,535 11,766 11,594 11,606 11,617 11,675 11,725 11,718 11,748 11,820 4,410 4,429 4,595 4,317 4,318 4,290 4,301 4,338 4,306 4,319 4,363 3,463 3,518 3,511 3,526 3,538 3,562 3,572 3,577 3,596 3,603 3,618 3,592 3,588 3,660 3,751 3,750 3,765 3,802 3,810 3,816 3,826 3,839 93,082 93,672 94,037 95,010 95,721 95,934 96,507 96,723 96,861 97,515 92,892 25,997 26,043 25,899 25,456 24,921 24,592 23,897 22,416 20,879 22,683 22,284 81,490 81,745 81,971 82,469 82,750 83,228 83,697 84,119 84,509 85,054 85,529 7,816 7,825 7,831 7,795 7,840 7,878 7,924 7,998 8,055 8,087 8,143 20,242 20,382 20,538 20,830 21,067 21,321 21,581 21,888 22,202 22,503 22,710 13,439 13,537 13,805 13,429 13,613 13,828 13,906 14,088 14,444 14,188 14,360 119,079 119,715 119,936 120,466 120,642 120,526 120,404 119,139 117,740 120,198 120,176 i Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book N o t e . —Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United Statep. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets End of period Mort gages Invest ment secur ities i Cash Other Total assets— Total liabilities 9,326 10,731 12,590 19,117 Liabilities Mortgage loan com mitments outstanding at end of period4 Savings capital Net worth 2 Bor rowed money 3 Loans in process 176,183 206,023 243,127 271,905 146,404 174,197 206,764 226,968 12,401 13,592 15,240 17,056 10,911 8,992 9,782 17,172 3,078 5,029 6,209 4,667 3,389 4,213 5,132 6,042 4,452 7,328 11,515 9,526 Other 1970.................................. 1971.................................. 1972.................................. 19735................................ 150,331 174,250 206,182 231,733 1974—Jan......................... Feb........................ Mar....................... Apr........................ May....................... June....................... July....................... Aug........................ Sept....................... Oct......................... Nov....................... Dec........................ 232,607 234,052 236,136 238,645 241,263 243,400 245,135 246,713 247,624 248,189 248,711 249,306 22,403 23,352 23,993 23,544 23,705 23,003 23,052 22,081 21,166 22,126 23,249 23,235 19,392 19,788 20,316 20,787 21,421 21,614 21,926 22,361 22,758 23,016 23,306 23,075 274,402 277,192 280,445 282,976 286,389 288,017 290,113 291,155 291,548 293,331 295,266 295,616 229,145 230,971 235,136 234,918 235,429 238,114 237,631 236,472 237,877 238,304 239,530 242,914 17,281 17,571 17,435 17,709 18,019 17,838 18,101 18,377 18,201 18,444 18,674 18,435 16,735 16,503 16,725 18,159 19,355 20,347 21,708 22,891 24,136 24,544 24,550 24,824 4,371 4,294 4,481 4,796 5,038 5,033 4,867 4,584 4,226 3,809 3,444 3,205 6,870 7,853 6,668 7,394 8,548 6,685 7,806 8,831 7,108 8,230 9,068 6,238 9,781 10,731 12,006 12,918 12,480 11,732 10,844 9,851 9,126 8,127 7,723 7,454 1975—Jan.*..................... 249,748 25,376 23,337 298,461 246,220 18,622 23,384 3,018 7,217 7,928 13,020 3,506 18,185 2,857 21,574 2,781 21,055 1 Excludes stock of the Federal Home Loan Bank Board. Compensating changes have been made in “Other assets.” 2 Includes net undistributed income, which is accrued by most, but not all, associations. 3 Advances from FHLBB and other borrowing. 4 Data comparable with those shown for mutual savings banks (on opposite page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. 5 Beginning 1973, participation certificates guaranteed by the Federal Home Loan Mortgage Corporation, loans and notes insured by the Farmers Home Administration, and certain other Govt.-insured mortgagetype investments, previously included in mortgage loans, are included in other assets. The effect of this change was to reduce the mortgage total by about $0.6 billion. Also, GNMA-guaranteed, mortgage-backed securities of the pass through type, previously included in “Cash” and “Investment securities” are included in “Other assets.” These amounted to about $2.4 billion at the end of 1972. N o t e . —FHLBB data; figures are estimates for all savings and loan assns. in the United States. Data are based on monthly reports of insured assns. and annual reports of noninsured assns. Data for current and preceding year are preliminary even when revised. A 34 FEDERAL FINANCE □ MARCH 1975 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions o f dollars) U.S. budget Means o f financing Borrowings from the public Period Receipts Outlays Surplus Less: Invest Public or ments by Govt, Trea deficit debt Agency Less: Equals: accounts 1 sury securi securi Special Total operat (-) notes2 ties ties ing Special Other balance issues Fiscal year: 197 1 197 2 197 3 197 4 188,392 208,649 232,225 264,932 211,425 231,876 246,526 268,392 Half year: 1973—Jan.-June July-Dee. 1974—Jan.-June July-Dee. 126,164 124,256 140,679 139,870 127,947 -1 ,7 8 4 8,843 130,362 -6 ,1 0 6 11,756 138,032 2,647 5,162 153,399 -13,591 18,429 Month: 1974—Ja n Feb.......... Mar......... Apr.......... M ay........ June........ July......... Aug......... Sept......... Oct.......... -23,033 -23,227 -14,301 -3 ,4 6 0 27,211 -3 4 7 6,616 29,131 -1,269 6,796 30,881 216 11,712 16,918 903 13,673 23,475 '23,664 20,226 21,030 16,818 22,905 29,657 22,273 19,243 23,981 31,259 24,172 20,939 24,411 23,620 25,408 28,377 24,712 19,633 26,460 22,292 24,965 24,946 27,442 1975—Ja n -0,189 -1,714 -8 0 4 2,503 -6,086 3,813 7,384 -2,597 -4,739 2,773 385 7,087 -3,472 1,109 -1,787 6,447 3,666 -326 -6,827 -1,242 -2,673 5,139 -2,496 7,300 25,020 N ov.......... Dec......... -3,914 28,934 Less: Cash and monetary assets 1,475 Other means of financ ing, net3 Other 801 1,623 109 1,140 19,448 19,442 19,275 3,009 710 1,362 2,459 -3,417 -7 1 0 3,587 1,108 6,003 -1,613 -4 ,1 2 9 898 -2,063 5,716 5,376 8,297 2,840 577 845 295 150 6,014 -3 ,0 0 4 14,794 1,503 -2,202 -1,215 -3,228 -9 3 1,305 -319 -2,429 1,089 231 248 -4,183 15 -1 ,0 6 9 - 1 7 2,489 394 -155 37 -9 3 -2 8 2,947 29 4,178 -126 -858 -5 6 4,133 -1 6 7 -1,311 -2 4 2 -2 ,0 5 3 -1 7 653 -3 8 2,276 139 159 52 35 -211 121 198 -2 5 250 -1 5 2 -3 1 -9 0 -7 7 0 -1 6 2 4,309 -2 ,5 0 2 8 -3 ,8 8 6 1,644 2,283 569 721 4,500 5,077 168 -2,877 690 3,125 -5,032 2,711 -2,705 -1,012 3,244 -6,445 816 2,874 '530 -8 4 191 1,319 -1,120 239 -658 83 797 -338 96 268 '1,657 -1,995 2,657 -4 3 8 -1,423 -2 5 2 -1,534 -1,425 -1 9 4 -6 7 7 -915 561 -2 3 -2 ,1 7 3 -4 2 3,667 -5 8 319 508 -661 478 426 -646 Selected balances Treasury operating balance End of period F.R. Banks Tax and loan accounts Borrowing from the public. Public debt securities Other deposi taries4 Agency securities Less: Investments of Govt, accounts 1 Special issues Less: Special notes2 Equals: Total Other Memo: Debt of Govt.sponsored corps.— Now private5 Fiscal year: 197 1 197 2 197 3 197 4 1,274 2,344 4,038 2,919 7,372 7,934 8,433 6,152 109 139 106 8,755 10,117 12,576 9,159 398,130 427,260 458,142 475,060 12,163 10,894 11,109 12,012 82,740 89,536 101,248 114,921 22,400 24,023 24,133 25,273 825 825 825 825 304,328 323,770 343,045 346,053 37,086 41,814 51,325 65,411 Calendar year 197 3 197 4 2,543 3,113 7,760 2,749 70 70 10,374 5,932 469,898 492,664 11,586 11,367 106,624 117,761 24,978 25,423 825 ( 6) 349,058 360,847 ,857 Month: 1974—Jan.. . . F eb .... M ar.. . Apr.. . . M ay... June... Ju ly ... A ug... Sept.. . O ct.... N ov.. . Dec.... 2,844 2,017 1,372 2,814 3,134 2,919 3,822 3,303 3,209 787 1,495 3,113 7,628 5,579 6,915 8,576 3,226 6,152 2,544 2,049 5,386 1,381 1,563 2,749 69 69 69 89 468,184 6475,344 481,792 481,466 480,224 485,364 492,664 11,598 11,581 11,975 12,012 11,984 12,012 11,895 11,831 11,664 11,422 11,404 11,367 105,555 108,044 107,889 107,796 110,743 114,921 114,063 118,196 116,885 114,832 115,485 117,761 25,117 25,276 25,328 25,363 25,152 25,273 25,471 25,446 25,696 25,544 25,513 25,423 825 825 825 825 825 825 ( 6) 70 10,542 7,665 8,356 11,480 6,448 9,159 6,454 5,443 8,687 2,239 3,058 5,932 348,285 348,123 352,433 349,931 349,939 346,053 347,706 349,980 350,549 351,270 355,770 360,847 59,566 59,282 59,897 61,151 62,650 65,411 68,243 69,951 73,068 75,343 75,706 76,459 1975—J a n .... 3,540 2,114 220 5,874 494,139 11,343 115,588 25,380 91 92 71 470,687 474,500 471,903 474,675 475,060 1 With the publication of the Oct. 1974, Federal Reserve B u l l e t i n , these series have been corrected (beginning in fiscal year 1971) to exclude special issues held by the Federal home loan banks and the General Services Adm. Participation Certificate Trust, which are not Govt, ac counts. 2 Represents non-interest-bearing public debt securities issued to the International Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of credit. 3 Includes accrued interest payable on public debt securities, deposit funds, miscellaneous liability and asset accounts, and seigniorage. 4 As of Jan. 3, 1972, the Treasury operating balance was redefined to exclude the gold balance and to include previously excluded “Other deposi 364,514 taries” (deposits in certain commercial depositaries that have been con verted from a time to a demand basis to permit greater flexibility in Treasury cash management). 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate credit banks and banks for cooperatives (both beginning Dec. 1968). 6 Beginning July 1974, public debt securities excludes $825 million o f notes issued to International Monetary Fund to conform with Office of Management and Budget’s presentation of the budget. N ote.—Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. MARCH 1975 □ FEDERAL FINANCE A 35 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation income taxes Individual income taxes Period Total Pres. Elec With tion Non Re held Cam with funds paign held Fund1 Net total Social insurance taxes and contributions Employment taxes and contributions2 Un- Other Gross Re re empl. net re ceipts funds Pay insur. ceipts Selfroll empl. taxes Fiscal year: 197 1 197 2 197 3 197 4 188,392 208,649 232,225 264,932 76,490 83,200 98,093 112,064 24,262 25,679 27,017 28 30,812 Half year: 1973—Jan.-June. . . July-Dee.. .. 1974—Jan .-Ju n e... July-Dee.. . . 126,164 124,256 140,679 139,807 52,037 52,964 59,103 61,377 221,233 21,179 52,094 23,730 1,434 6,207 999 58,172 16,589 1,494 28 24,605 22,953 60,782 25,156 1,631 7,099 1,016 67,460 18,247 2,016 Month: 1974—Jan . ' Feb............... Mar.............. Apr............... May............. June............. July.............. Aug.............. Sept.............. Oct............... Nov.............. Dec.............. 23,475 20,226 16,818 29,657 19,243 31,259 20,939 23,620 28,377 19,633 22,292 24,946 9,295 9,505 9,662 9,946 10,083 10,611 10,227 10,223 9,754 10,106 10,638 10,428 5.076 945 2,186 11,118 1,204 4.077 957 491 4,323 561 305 461 1975—Ja................. n 25,020 10,252 1 5,366 14,522 14,143 21,866 23,952 86,230 30,320 3,535 39,751 94,737 34,926 2,760 44,088 103,246 39,045 2,893 52,505 118,952 41,744 3,125 62,886 45 14,326 1,851 8,601 8,631 3,219 6,313 14,764 5,651 5,641 462 14,231 378 10,806 229 10,485 130 13,947 78 10,590 111 10,832 90 10,799 1,722 1,066 5,887 5,893 1,318 9,269 1,796 1,084 6,082 1,717 1,111 6,458 132 15,487 1,745 160 248 338 430 218 237 310 256 435 511 314 190 1,948 2,032 2,371 3,008 3,673 4,357 6,051 6,837 Net total Estate Misc. and re gift ceipts4 Excise Cus taxes toms 48,578 53,914 64,542 76,780 16,614 15,477 16,260 16,844 2,591 3,287 3,188 3,334 3,735 5,436 4,917 5,035 3,858 3,633 3,921 5,368 30,013 2,206 3,616 1,841 37,657 29,965 201 2,974 1,967 35,109 32,919 2,808 3,862 2,082 41,672 34,418 254 2,914 2,187 39,774 8,016 8,966 7,878 8,761 1,637 1,633 1,701 1,958 2,584 2,514 2,521 2,284 1,861 2,768 2,601 3,341 1,263 1,315 1,211 1,275 1,391 1,423 1,517 1,415 1,465 1,401 1,474 1,489 304 239 277 286 295 301 325 355 305 347 319 307 455 423 465 371 437 370 418 453 352 370 350 341 333 429 377 602 343 517 607 540 543 578 773 301 402 5,673 1,351 307 385 629 4,439 170 245 7,080 761 214 5,059 96 228 552 4,390 1,603 311 2,190 7,196 4,757 281 18 418 5,005 1,363 7,813 62 240 5,428 4,558 221 762 6,633 4,982 14 89 557 4,802 223 245 3,206 3,437 3,614 4,051 378 346 338 351 339 329 358 368 389 363 353 356 5,233 8,400 5,721 6,896 10,036 5,386 5,781 9,544 6,119 5,142 7,748 5,441 Budget outlays Period Total Fiscal year: 197 2 197 3 197 4 231,876 246,526 268,392 19757..................... 304,445 Na tional de fense Intl. affairs Space re search Com Nat Agri ural merce cul and re ture sources transp. Commun. deve lop. and hous ing Educa tion Health and and man wel power fare Vet erans Inter est Gen eral govt. Gen eral reve nue shar ing Intragovt. trans ac tions 5 78,336 76,023 79,387 87,729 3,786 3,132 3,527 4,103 3,422 3,311 3,252 3,272 7,061 3,759 11,197 6,051 559 12,505 5,156 -1,109 12,561 2,729 3,128 13,400 4,216 4,162 5,184 5,667 10,198 10,822 10,581 11,537 81,538 91,343 105,597 126,353 10,747 12,004 13,367 13,612 20,584 22,836 28,096 29,122 4,889 -7,858 5,519 6 6,636 -8,379 6,491 6,106 -9,893 6,774 6,174 -10,717 Half year: 1973—Jan.-June. July-Dee.. 1974—Jan.-June. July-Dee.. 127,947 130,362 138,032 153,339 40,694 37,335 42,057 42,553 1,493 1,567 1,910 1,807 1,635 1,501 1,752 1,596 1,435 230 3,472 764 1,684 -1,782 427 2,162 6,306 7,387 5,174 8,302 1,525 3,215 1,969 4,787 5,690 4,772 5,809 5,103 48,130 48,950 56,619 62,181 6,264 6,518 6,848 7,838 12,217 13,493 14,655 15,320 2,650 3,112 3,403 3,792 4,019 3,032 3,074 3,082 -4,340 -4,756 -5,141 -5,551 Month: 1974—Ja n Feb.......... Mar......... Apr.......... M ay........ June........ July......... Aug......... Sept......... Oct........... Nov......... Dec.......... '23,664 '6,785 21,030 6,509 22,905 6,686 22,273 6,751 23,981 7,243 24,172 8,062 24,411 5,862 25,408 6,905 24,712 6,877 26,460 7,652 24,965 7,673 27,442 7,584 351 224 345 336 312 402 369 260 398 62 373 342 251 231 252 293 278 447 216 247 267 281 297 288 756 -5 4 4 138 58 759 205 89 -1,618 313 428 183 -865 -6 0 498 514 -61 19 728 358 280 -4 7 4 -155 326 616 r875 363 746 740 875 1,574 1,099 2,257 1,163 1,246 1,147 1,393 330 198 263 373 352 452 693 773 819 752 850 899 984 932 1,036 925 662 1,270 854 925 837 794 837 856 '9,092 8,979 9,310 9,505 10,087 9,675 10,060 9,925 10,022 10,282 10,645 11,245 1,204 1,088 1,194 1,165 1,180 1,017 1,258 1,236 1,147 1,220 1,341 1,636 2,353 2,466 2,508 2,455 2,516 2,308 2,525 2,477 2,721 2,433 2,688 2,475 '623 520 499 586 498 655 466 727 731 529 529 810 1,532 1 -928 -6 7 7 -898 -8 6 7 -763 -1,007 -9 6 7 -778 -1,026 -961 -791 -1,027 274 298 915 1,157 1,227 11,697 1,399 2,538 489 1975—Ja n 28,934 7,307 806 650 1 Collections of these receipts, totaling $2,427 million for fiscal year 1973, were included as part of nonwithheld income taxes prior to Feb. 1974. 2 Old-age, disability, and hospital insurance, and Railroad Retirement accounts. 3 Supplementary medical insurance premiums and Federal employee retirement contributions. 4 Deposits of earnings by F.R. Banks and other miscellaneous receipts. 5 Consists of Govt, contributions for employee retirement and of interest received by trust funds. 1,540 1 1,538 7 1,533 4 1,528 -1,350 6 Contains retroactive payments of $2,617 million for fiscal 1972. 7 Estimate presented in Budget o f the U.S. Government, Fiscal Year 1975. Breakdown does not add to total because special allowances for contingencies, Federal pay increase (excluding Dept, of Defense), and acceleration of energy research and development, totaling $1,561 million, are not included. N ote.—Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. A 36 U.S. GOVERNMENT SECURITIES a MARCH 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions o f dollars) Public issues (interest-bearing) End of period Total gross public debt 1 Marketable Total Total Certifi cates Bills Notes Con vert ible Bonds 2 bonds Nonmarketable Foreign Savings Total 3 issues 4 bonds and notes Special issues 5 1968—Dec. 1969—Dec. 1970—Dec. 358.0 368.2 389.2 296.0 295.2 309.1 236.8 235.9 247.7 75.0 80.6 87.9 76.5 85.4 101.2 85.3 69.9 58.6 2.5 2.4 2.4 56.7 56.9 59.1 4.3 3.8 5.7 52.3 52.2 52.5 59.1 71.0 78.1 1971—Dec.. 1972—Dec. 1973—Dec. 424.1 449.3 469.9 336.7 351.4 360.7 262.0 269.5 270.2 97.5 103.9 107.8 114.0 121.5 124.6 50.6 44.1 37.8 2.3 2.3 2.3 72.3 79.5 88.2 16.8 20.6 26.0 54.9 58.1 60.8 85.7 95.9 107.1 1974—Feb. Mar. Apr. May June July. Aug. Sept. Oct. Nov. Dec. 470.7 474.5 471.9 474.7 475.1 475.3 481.8 481.5 480.2 485.4 492.7 360.0 364.2 361.7 361.5 357.8 359.7 362.0 362.7 363.9 368.2 373.4 269.7 273.6 270.5 269.6 266.6 268.8 272.1 272.6 273.5 277.5 282.9 107.9 111.9 107.3 107.9 105.0 107.3 110.6 111.1 112.1 114.6 119.7 126.1 126.1 127.6 128.4 128.4 128.4 127.7 127.7 127.7 129.6 129.8 35.7 35.6 35.5 33.2 33.1 33.0 33.9 33.8 33.8 33.3 33.4 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 88.1 88.3 89.0 89.6 89.0 88.7 87.6 87.8 88.1 88.4 88.2 25.4 25.2 25.7 26.0 25.0 24.4 23.2 23.2 23.1 23.1 22.8 61.3 61.6 61.9 62.1 62.4 62.7 62.8 63.0 63.3 63.6 63.8 108.6 108.5 108.4 111.3 115.4 114.6 118.7 117.4 115.3 115.9 118.2 1975—Jan.. Feb.. 494.1 499.7 377.1 381.5 286.1 289.8 120.0 123.0 131.8 132.7 33.3 34.1 2.3 2.3 88.8 89.4 23.0 23.3 64.2 64.5 116.0 117.2 1 Includes non-interest-bearing debt (of which $616 million on Feb. 28, 1975, was not subject to statutory debt limitation). 2 Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. 3 Includes (not shown separately): despositary bonds, retirement plan bonds, Rural Electrification Administration bonds, State and local govern ment bonds, and Treasury deposit funds. 4 Nonmarketable certificates of indebtedness, notes, and bonds in the Treasury foreign series and foreign-currency-series issues. 5 Held only by U.S. Govt, agencies and trust funds and the Federal home loan banks. N o t e . —Based on Daily Statement of U.S. Treasury. See also second paragraph in N o t e to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by private investors Held b y Total gross public debt U.S. Govt. agencies and trust funds F.R. Banks Total 1968—Dec................ 1969—Dec................ 1970—Dec................ 358.0 368.2 389.2 76.6 89.0 97.1 52.9 57.2 62.1 1971—Dec................ 1972—Dec................ 1973—Dec................ 424.1 449.3 469.9 106.0 116.9 129.6 1974—Jan................. Feb................ Mar............... Apr................ M ay.............. June.............. July............... Aug............... Sept............... Oct................ Nov............... Dec................ 468.2 470.7 474.5 471.9 474.7 475.1 475.3 481.8 481.5 480.2 485.4 492.7 128.7 131.3 131.2 131.1 133.9 138.2 137.5 141.6 140.6 138.4 139.0 141.2 End of period Foreign and inter national 1 Other misc. inves tors 2 23.3 29.0 29.1 14.3 11.2 20.6 21.9 25.0 19.9 54.4 57.7 60.3 18.8 16.2 16.9 46.9 55.3 55.6 15.6 17.0 19.3 60.5 60.8 61.1 61.4 61.7 61.9 62.2 62.3 62.5 62.8 63.2 63.4 16.9 17.0 17.3 17.8 18.3 18.8 19.4 20.3 20.8 21.0 21.1 21.5 52.8 53.6 54.9 55.9 57.3 57.7 56.9 56.0 56.0 56.6 58.3 58.4 21.1 21.2 20.0 19.7 18.5 17.3 18.8 19.0 19.5 20.3 20.1 22.4 Mutual savings banks Insur ance com panies Other corpo rations State and local govts. 228.5 222.0 229.9 66.0 56.8 62.7 3.8 3.1 3.1 8.4 7.6 7.4 14.2 10.4 7.3 24.9 27.2 27.8 51.9 51.8 52.1 70.2 69.9 78.5 247.9 262.5 261.7 65.3 67.7 60.3 3.1 3.4 2.9 7.0 6.6 6.4 11.4 9.8 10.9 25.4 28.9 29.2 78.2 78.2 79.5 80.0 81.4 80.5 78.1 81.1 81.0 79.4 81.0 80.5 261.2 261.1 263.8 260.7 259.4 256.4 259.7 259.0 259.8 262.5 265.3 271.0 60.2 58.2 59.5 56.8 54.8 53.2 53.9 53.0 52.9 53.5 54.5 56.5 2.8 2.8 2.8 2.7 2.6 2.6 2.6 2.6 2.5 2.5 2.5 2.5 6.3 6.0 6.1 5.9 5.8 5.9 5.7 5.7 5.7 5.9 5.9 6.1 10.7 10.9 11.7 10.5 11.2 10.8 11.3 11.0 10.5 11.2 11.0 11.0 29.9 30.7 30.4 30.1 29.2 28.3 28.8 29.2 29.3 28.8 28.7 29.2 1 C onsists of investm ents of foreign and in tern atio n al accounts in the U n ited States. 2 C onsists o f savings and loan assns., nonprofit institutions, cor porate pension tru st funds, and dealers and brokers. Also included are certain G ovt, deposit accounts and G ovt.-sponsored agencies. N o t e . —Reported data for F.R. Banks and U.S. Govt, agencies and trust funds; Treasury estimates for other groups. Individuals Com mercial banks Savings Other bonds securities The debt and ow nership concepts were altered beginning w ith the M ar. 1969 B u l l e t i n . The new concepts (1 ) exclude guaranteed se curities and (2 ) rem ove from U .S. G ovt, agencies and tru st funds and add to other m iscellaneous investors the holdings o f certain Govt.-sponsored but privately owned agencies and certain Govt, deposit accounts. Beginning in July 1974, total gross public debt includes Federal Financing Bank bills and excludes notes issued to the IMF ($825 million). MARCH 1975 □ U.S. GOVERNMENT SECURITIES A 37 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date 1-5 years 5-10 years 10-20 years Over 20 years 21,636 26,552 33,785 28,339 28,339 93,648 88,564 81,715 85,311 87,339 29,321 29,143 25,134 27,897 27,894 9,530 15,301 15,659 14,833 14,795 10,397 6,079 6,145 6,764 6,722 Total Total All holders: 1971—Dec. 1972—Dec. 1973—Dec. 1974—Dec. 1975—Jan. 31........................................................ 262,038 31........................................................ 269,509 31........................................................ 270,224 31........................................................ 282,891 31........................................................ 286,133 Bills Other 119,141 130,422 141,571 148,086 149,383 97,505 103,870 107,786 119,747 121,044 U.S. Govt, agencies and trust funds: 1971—Dec. 31................................................ 1972—Dec. 31................................................ 1973—Dec. 31................................................ 1974—Dec. 31................................................ 1975—Jan. 31................................................ 18,444 19,360 20,962 21,391 21,374 1,380 1,609 2,220 2,400 2,550 605 674 631 588 640 775 935 1,589 1,812 1,910 7,614 6,418 7,714 7.823 7,737 4,676 5,487 4,389 4,721 4,643 2,319 4,317 5,019 4,670 4,672 2,456 1,530 1,620 1,777 1,773 Federal Reserve Banks: 1971—Dec. 31................................................ 1972—Dec. 31................................................ 1973—Dec. 31................................................ 1974—Dec. 31................................................ 1975—Jan. 31................................................ 70,218 69,906 78,516 80,501 81,344 36,032 37,750 46,189 45,388 45,575 31,033 29,745 36,928 36,990 37,076 4,999 8,005 9,261 8,399 8,499 25,299 24,497 23,062 23,282 23,797 7,702 6,109 7,504 9,664 9,764 584 1,414 1,577 1,453 1,457 601 136 184 713 751 Held by private investors: 1971—Dec. 31................................................ 1972—Dec. 31................................................ 1973—Dec. 31................................................ 1974—Dec. 31................................................ 1975—Jan. 31................................................ 173,376 180,243 170,746 180,999 183,415 81,729 91,063 93,162 100,298 101,258 65,867 73,451 70,227 82,168 83,328 15,862 17,612 22,935 18,130 17,930 60,735 57,649 50,939 54,206 55,805 16,943 17,547 13,241 13,512 13,487 6,627 9,570 9,063 8,710 8,666 7,340 4,413 4,341 4,274 4,198 Commercial banks: 1971—Dec. 31......................................... 1972—Dec. 31........................................ 1973—Dec. 31......................................... 1974—Dec. 31......................................... 1975—Jan; 31......................................... 51,363 52,440 45,737 42,755 41,372 14,920 18,077 17,499 14,873 13,057 8,287 10,289 7,901 6,952 5,287 6,633 7,788 9,598 7,921 7,770 28,823 27,765 22,878 22,717 23,251 6,847 5,654 4,022 4,151 4,103 555 864 1,065 733 718 217 80 272 280 244 Mutual savings banks: 1971—Dec. 31......................................... 1972—Dec. 31......................................... 1973—Dec. 31........................................ 1974—Dec. 31......................................... 1975—Jan. 31......................................... 2,742 2,609 1,955 1,477 1,480 416 590 562 399 292 235 309 222 207 126 181 281 340 192 166 1,221 1,152 750 614 678 499 469 211 174 203 281 274 300 202 197 326 124 131 88 110 Insurance companies: 1971—Dec. 31......................................... 1972—Dec. 31......................................... 1973—Dec. 31......................................... 1974—Dec. 31......................................... 1975—Jan. 31......................................... 5,679 5,220 4,956 4,741 4,804 720 799 779 722 743 325 448 312 414 447 395 351 467 308 296 1,499 1,190 1,073 1,061 1,075 993 976 1,278 1,310 1,328 1,366 1,593 1,301 1,297 1,312 1,102 661 523 351 346 Nonfinancial corporations: 1971—Dec. 31......................................... 1972—Dec. 31......................................... 1973—Dec. 31......................................... 1974—Dec. 31......................................... 1975—Jan. 31......................................... 6,021 4,948 4,905 4,246 4,364 4,191 3,604 3,295 2,623 2,340 3,280 1,198 1,695 1,859 1,643 911 2,406 1,600 764 697 1,492 1,198 1,281 1,423 1,778 301 121 260 115 150 16 25 54 26 49 20 1 15 59 48 Savings and loan associations: 1971—Dec. 31......................................... 1972—Dec. 31......................................... 1973—Dec. 31......................................... 1974—Dec. 31......................................... 1975—Jan. 31......................................... 3,002 2,873 2,103 1,663 1,664 629 820 576 350 323 343 498 121 87 83 286 322 455 263 240 1,449 1,140 1,011 835 866 587 605 320 282 282 162 226 151 173 169 175 81 45 23 25 State and local governments: 1971—Dec. 31......................................... 1972 Dec. 31......................................... 1973 Dec. 31......................................... 1974—Dec. 31......................................... 1975—Jan. 31......................................... 9,823 10,904 9,829 7,864 8,552 4,592 6,159 5,845 4,121 4,867 3,832 5,203 4,483 3,319 4,057 760 956 1,362 802 810 2,268 2,033 1,870 1,796 1,681 783 816 778 815 814 918 1,298 1,003 800 855 1,263 598 332 332 334 94,746 101,249 101,261 118,253 121,178 56,261 61,014 64,606 77,210 79,636 49,565 55,506 55,493 69,330 71,686 6,696 5,508 9,113 7,880 7,950 23,983 23,171 22,076 25,760 26,476 6,933 8,906 6,372 6,664 6,607 3,329 5,290 5,189 5,479 5,365 4,237 2,868 3,023 3,141 3,093 All others: 1971—Dec. 1972—Dec. 1973—Dec. 1974—Dec. 1975—Jan. 31........................................ 31........................................ 31........................................ 31......................................... 31........................................ N o t e . —Direct public issues only. Based on Treasury Survey of Ownership. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, but data for other groups include only holdings of those institutions that report. The following figures show, for each category, the number and proportion reporting: (1) 5,573 commercial banks, 476 mutual savings banks, and 733 insurance companies combined, each about 90 per cent; (2) 462 nonfinancial corporations and 486 savings and loan assns., each about 50 per cent; and (3) 503 State and local govts., about 40 per cent, “All others,” a residual, includes holdings of all those not reporting in the Treasury Survey, including investor groups not listed separately, A 38 U.S. GOVERNMENT SECURITIES □ MARCH 1975 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity Period Total Within 1 year 1-5 years By type of customer 5-10 years Over 10 years U.S. Govt, U.S. Govt, securities securities dealers brokers Com mercial banks All other1 U.S. Govt agency securities 1974—Jan................................ Feb............................... Mar.............................. Apr............................... M ay............................. June............................. July.............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec............................... 3,659 4,229 3,697 3,338 3,542 3,084 2,566 3,097 4,114 3,543 3,977 4,111 3,074 3,192 2,814 2,682 2,645 2,549 2,114 2,407 3,327 2,802 2,872 3,126 325 402 450 438 693 385 348 389 472 498 635 550 215 561 369 173 133 110 66 238 265 193 384 369 45 74 64 45 72 41 38 64 50 50 86 67 706 795 744 614 711 693 490 554 683 607 560 671 889 1,058 892 836 905 759 685 876 1,351 1,087 1,049 1,196 1,103 1,299 1,071 951 991 877 681 789 1,022 928 1,144 1,120 962 1,077 991 937 936 755 710 878 1,058 920 1,224 1,124 695 1,019 733 710 861 978 1,044 856 1,227 1,150 1,186 1,087 1975—Jan............................... 5,415 3,495 1,514 303 104 887 1,549 1,503 1,478 1,244 Week ending— 1975—Jan. 1....................... 8....................... 15....................... 22....................... 29....................... 3,546 5,622 5,126 4,825 5,650 2,778 3,944 3,351 3,618 3,337 554 1,422 1,421 972 2,059 176 188 242 176 193 38 68 112 59 62 639 914 846 827 945 643 1,657 1,371 1,390 1,663 1,154 1,538 1,486 1,311 1,552 1,111 1,513 1,423 1,298 1,489 545 1,087 1,236 1,448 1,185 Feb. 5....................... 12....................... 19....................... 26....................... 7,439 6,358 5,528 4,646 3,453 3,763 3,499 2,794 2,334 1,432 1,271 1,256 1,262 905 635 479 390 259 123 117 943 819 660 511 2,683 2,362 1,829 1,593 1,954 1,637 1,551 1,187 1,859 1,540 1,488 1,355 1,313 1,139 1,466 1,165 i Since Jan. 1972 has included transactions of dealers and brokers in securities other than U.S. Govt. N o t e . —The transactions data combine market purchases and sales of U.S. Govt, securities dealers reporting to the F.R. Bank of N e w York. They do not include allotments of, and exchanges for, new U.S. Govt, securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), or similar contracts. Averages of daily figures based on the number of trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Period All Within 1 maturi ties year 1-5 years 5-10 years Over 10 years U.S. Govt. agency securi ties 1974—Jan................. Feb................. Mar................ Apr................. May............... June............... July................ Aug............... Sept................ Oct................. Nov................ Dec................. 4,081 2,587 1,536 495 594 263 2,487 3,060 2,870 4,513 4,831 3,210 2,707 2,149 1,577 421 447 219 1,819 2,317 2,149 2,999 3,100 51 537 50 -121 -3 3 52 -5 0 228 334 430 728 975 262 647 287 62 66 78 90 356 340 260 618 559 130 190 102 17 41 16 . 4 84 69 31 169 197 1,324 1,435 1,045 719 791 1,226 935 1,073 1,216 1,445 1,531 1,803 1975—Jan................. 4,653 2,689 1,254 598 113 1,578 3,653 Commercial banks Period All sources 1974—Jan............. Feb............. Mar............ May........... June........... July........... Aug............ Sept............ Nov........... 1975—Jan............. Corpora tions 1 All other New York City Else where 4,802 4,837 3,817 2,449 1,637 2,477 1,710 4,138 4,709 4,621 5,626 6,904 1,747 1,545 1,196 600 26 241 6 988 1,312 1,194 1,466 2,061 1,253 1,501 952 728 486 884 596 1,248 1,247 1,003 1,245 1,619 658 533 485 287 213 268 216 548 480 571 561 691 1,143 1,257 1,185 833 913 1,083 892 1,354 1,671 1,853 2,355 2,534 6,185 1,455 1,277 864 2,590 Week ending— Week ending— 1974—Dec. 4 ........ 4,615 4,642 11 , 18........ 5,391 25........ 4,663 3,135 3,121 3,829 3,023 650 743 802 927 620 575 550 523 210 203 210 190 1,408 1,634 1,855 1,995 1974—Dec. 4. .. 11. .. 18. .. 2 5 ... 5,346 6,843 7,738 7,244 1,191 2,051 2,786 2,219 1,173 1,862 1,927 1,466 575 854 775 613 2,406 2,077 2,250 2,947 1975—Jan. 1......... 4,741 8 ......... 5,341 15......... 5,440 22 3,666 29......... 4,125 2,258 2.501 3,485 2,105 2,673 1,776 2,051 1,243 849 907 535 641 616 603 480 171 149 95 109 65 2,056 1,831 1,550 1,426 1,504 1975—Jan. 1 ... 8. .. 15... 2 2 ... 29. .. 6,436 6,649 7,271 5,625 5,360 1,424 1,495 1,801 1,394 1,197 1,344 1,476 1,802 961 963 565 720 1,139 792 849 3,103 2,958 2,529 2,478 2,351 N o t e . —The figures include all securities sold by dealers under repur chase contracts regardless of the maturity date of the contract, unless the contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more clearly represent investments by the holders of the securities rather than dealer trading positions. Average of daily figures based on number of trading days in the period. 1 All business corporations, except commercial banks and insurance companies. N o t e . —Averages of daily figures based on the number of calendar days in the period. Both bank and nonbank dealers are included. See also N o t e to the table on the left. M ARCH 1975 □ FEDER ALLY S P O N S O R E D C R E D IT AGENC A ;SUES OF FEDERALLY SPONSORED CREDIT AGENCIES, JANUARY 3 Amount (millions of dollars) 250 400 500 700 265 300 300 500 400 350 600 700 400 250 300 600 600 300 500 700 600 500 500 500 500 200 300 600 300 300 700 400 500 500 600 600 500 400 500 500 500 350 300 200 200 400 200 300 400 400 350 140 150 150 3,332 200 248 250 250 53 5 71 35 10 21 81 200 Agency, and date of issue and maturity Federal National Mortgage Association—Cont. Debentures: 11/10/70 - 3/10/75........ 10/12/71 - 3/10/75........ 4/12/71 -6/10/75 ............ 10/13/70 - 9/10/75........ 3/12/73 -9/10/75 ............ 3/10/72 - 12/10/75........ 9/10/73 - 12/10/75.......... 3/11/71 - 3/10/76............ 6/12/73 - 3/10/76............ 6/10/71 -6/10/76............ 2/10/72 -6/10/76............ 9/10/74 - 6/10/76............ 11/10/71 - 9/10/76.......... 6/12/72-9/10/76........... 12/10/74-9/10/76.......... 7/12/71 - 12/10/76.......... 12/11/72- 12/10/76........ 6/10/74-12/10/76.......... 2/13/62 - 2/10/77.......... 9/11/72 - 3/10/77............ 3/11/74 - 3/10/77............ 12/10/70 - 6/10/77........ 5/10/71 -6/10/77............ 12/10/73 - 6/10/77.......... 9/10/71 -9/12/77............ 9/10/73 -9/12/77............ 7/10/73 - 12/12/77.......... 10/1/73 - 12/12/77.......... 6/10/74 - 3/10/78............ 6/12/73 - 6/12/78............ 3/11/74-9/11/78............ 10/12/71 - 12/11/78. . .. 7/10/74- 12/11/78.......... 12/10/73 - 3/12/79.......... 9/10/73 -6/11/79............ 9/10/74 - 6/11/79............ 6/12/72-9/10/79............ 12/10/74 - 9/10/79.......... 12/10/71 - 12/10/79___ 2/10/72 - 3/10/80............ 6/10/74-6/10/80............ 2/16/73 - 7/31/80........... 2/16/73 - 7/31/80............ 10/1/73 -9/10/80............ 1/16/73 - 10/30/80.......... 12/11/72 - 12/10/80........ 6/29/72- 1/29/81............ 3/12/73 - 3/10/81............ 4/18/73-4/10/81............ 3/21/73 - 5/1/81.............. 3/21/73 - 5/1/81.............. 1/21/71 - 6/10/81.......... 9/10/71 -9/10/81............ 9/10/74-9/10/81............ 3/11/74 - 12/10/81.......... 7/10/74-3/10/82............ 6/28/72-5/1/82.............. 2/10/71 - 6/10/82............ 9/11/72 - 9/10/82............ 12/10/73 - 12/10/82........ 3/11/71 - 6/10/83............ 6/12/73 -6/10/83............ 11/10/71 -9/12/83.......... 4/12/71 -6/11/84 ............ 12/10/74-9/10/84.......... 12/10/71 - 12/10/84___ 3/10/72 - 3/10/92.......... 6/12/72-6/10/92........... 12/11/72 - 12/10/97-82. . Cou Amount pon (millions rate of dollars) 7.55 6.35 5.25 7.50 6.80 5.70 8.25 5.65 7.13 6.70 5.85 10.00 6.13 5.85 7.50 7.45 6.25 8.45 41/2 6.30 7.05 6.38 6.50 7.20 6.88 7.85 7.25 7.55 8.45 7.15 7.15 6.75 8.95 7.25 7.85 9.80 6.40 7.80 6.55 6.88 8.50 5.19 3.18 7.50 4.46 6.60 6.15 7.05 6.59 4.50 5.77 7.25 7.25 9.70 7.30 8.88 5.84 6.65 6.80 7.35 6.75 7.30 6.75 6.25 7.95 6.90 7.00 7.05 7.10 300 600 500 350 650 500 300 500 400 250 450 700 300 500 200 300 500 600 198 500 400 250 150 500 300 400 500 500 650 600 550 300 450 500 300 600 300 700 350 250 600 1 9 400 5 300 156 350 26 18 2 250 250 300 250 300 58 250 200 300 200 300 250 200 300 250 200 200 200 Agency, and date of issue and maturity nour illioi iollai Banks for cooperatives Bonds: 8/1/74-2/3/75. .. 9/3/74 - 3/3/75.. . 10/1/74 -4 /1 /7 5 .. 11/4/74 - 5/1/75.. 12/2/74 - 6/2/75.. 1/2/75 -7/1/75. .. 10/1/73 -4 /4 /7 7 .. 12/2/74 - 10/1/79. 581 576 463 683 511 440 200 201 Federal intermediate credit banks Bonds: 5/1/74-2/3/75........ 6/3/74 -3 /3 /7 5 ........ 7/1/74-4/1/75........ 8/1/74- 5/1/75........ 9/3/74 - 6/2/75........ 1 0 /1 /7 4 -7 /1 /7 5 .... 1/3/72 -7 /1 /7 5 ........ 11/4/74-8/4/75___ 12/2/74 - 9 /2 /7 5 .... 1/2/75 - 10/2/75 ___ 3/1/73 - 1/5/76........ 7/2/73 - 1/3/77........ 7/1/74 -4 /4 /7 7 ........ 1/2/74 - 1/3/78........ 1/2/75 - 1/2/79........ 689 796 811 766 714 769 302 713 768 458 261 236 321 406 410 Federal land banks Bonds: 4/20/65 - 4/21/75.. 7/20/73 -4 /2 1 /7 5 ... 2/15/72 - 7/21/75... 4 /22/74-7/21/75... 7/20/71 - 10/20/75.. 10/23/73 - 10/20/75. 4/20/72 - 1/20/76... 7/22/74 - 1/20/76.. . 2/21/66 - 2/24/76.. 1/22/73 -4 /2 0 /7 6 ... 4/22/74-4/20/76... 7/20/66 - 7/20/76. . 1/21/74 - 7/20/76. .. 4/23/73 - 10/20/76.. 4/22/74 - 4/20/77... 7/20/73 -7 /2 0 /7 7 ... 10/20/71 - 10/20/77. 10/21/74- 1/23/78. . 2/20/63 - 2/20/73-78 5/2/66 - 4/20/78 . . . 1/20/75 -4/20/78. .. 7/20/72 - 7/20/78. . 7/22/74 - 7/20/78.. . 10/23/73 - 10/19/78. 2/20/67 - 1/22/79... 1/21/74- 1/22/79. .. 9/15/72 -4 /2 3 /7 9 ... 2/20/74 - 7/23/79. .. 10/23/72 - 10/23/79. 1/22/73 - 1/21/80... 7/20/73 - 7/21/80... 10/21/74- 10/20/80. 2/23/71 -4 /2 0 /8 1 ... 7/22/74 - 7/20/81... 1/20/75 - 1/20/82 . .. 4/20/72 - 4/20/82... 4/23/73 - 10/20/82.. 10/23/73 - 10/20/83. 200 300 425 300 300 362 300 650 123 373 400 150 360 450 565 550 300 546 148 150 713 269 350 550 285 300 235 389 400 300 250 400 224 265 400 200 239 300 by the U.S. Govt.; see also note to table at top of p. A-40. FEDERALLY SPONSORED CREDIT AGENCIES □ MARCH 1975 A 40 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Assets End of period Federal National Mortgage Assn. (secondary market operations) Liabilities and capital Cash and de posits Mem ber de posits Ad vances to mem bers Invest ments 1970............. 1971............. 1972............. 1973............. 10,614 7,936 7,979 15,147 3,864 2,520 2,225 3,537 105 142 129 157 10,183 7,139 6,971 15,362 2,332 1,789 1,548 1,745 1,607 1,618 1,756 2,122 1974—Feb... M ar... A p r... M ay.. June.. Ju ly .. Aug... Sept... O ct... N o v .. D ec... 14,904 14,995 16,020 17,103 17,642 18,582 19,653 20,772 21,409 21,502 21,804 2,680 2,779 1,615 1,956 2,564 2,578 2,052 2,681 3,224 2,568 3,094 116 124 82 96 115 150 80 135 105 106 144 13,906 13,906 13,902 14,893 16,393 17,390 18,759 20,647 22,058 21,474 21,878 1,936 2,027 2,067 2,215 2,158 1,954 1,935 2,160 2,129 2,182 2,484 1975—Jan.. . 20,728 4,467 113 21,778 2,612 Bonds and notes Banks for cooperatives Deben Loans to tures and cooper notes atives (L) (A) Bonds 15,502 17,791 19,791 24,175 15,206 17,701 19,238 23,001 2,294 2,306 2,337 2,376 2,413 2,450 2,495 2,543 2,580 2,603 2,624 24,541 24,888 25,264 25,917 26,559 27,304 28,022 28,641 29,139 29,407 29,709 2,699 29,797 Capital stock Mort gage loans (A) N o t e .—Data from Federal Home Loan Bank Board, Federal National Mortgage Assn., and Farm Credit Admin. Among omitted balance sheet items are capital accounts of all agencies, except for stock of FHLB’s. Bonds, debentures, and notes are valued at par. They include only publicly Federal intermediate credit banks Federal land banks Bonds (L) Loans and dis counts (A) 2,030 2,076 2,298 2,577 1,755 1,801 1,944 2,670 23,092 23,515 23,668 25,089 25,232 25,878 26,639 27,312 27,543 28,024 28,201 3,211 3,143 2,891 2,694 2,733 3,008 3,026 3,092 3,598 3,573 3,575 28,030 3,910 Bonds (L) Mort gage loans (A) 4,974 5,669 6,094 7,198 4,799 5,503 5,804 6,861 7,186 7,917 9,107 11,071 6,395 7,063 8,012 9,838 2,828 2,878 2,810 2,674 2,449 2,477 2,622 2,835 2,855 3,295 3,561 7,277 7,545 7,850 8,195 8,479 8,706 8,548 8,931 8,838 8,700 8,848 7,029 7,162 7,403 7,585 7,860 8,212 8,381 8,502 8,482 8,441 8,400 11,402 11,467 11,878 12,142 12,400 12,684 12,941 13,185 13,418 13,643 13,643 10,282 10,282 10,843 10,843 10,843 11,782 11,782 11,782 12,427 12,427 12,427 3,653 8,888 8,419 14,086 13,020 (L) offered securities (excluding, for FHLB’s, bonds held within the FHLB System) and are not guaranteed by the U.S. Govt.; for a listing of these securities, see table on preceding page. Loans are gross of valuation reserves and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Type of issue Issues for new capital Type of issuer Period Total 197 1 197 2 1973........... 1974........... 24,962 23,652 23,970 23,705 Gener al obli gations Reve nue 15,220 8,681 13,305 9,332 12,257 10,632 13,204 9,961 1974—Jan .. Feb.. Mar. Apr.. May. June. Julyr Augr Septr Oct. r N ovr D ec.’ 2,257 2,007 2,029 2,406 2,313 2,171 1,466 1,109 1,705 2,865 2,487 1,500 1,407 1,209 1,181 1,708 1,101 1,075 859 576 869 1,707 1,110 761 848 794 617 689 1,203 856 600 529 832 1,153 1,374 717 1975—Jan.. 2,071 1,299 766 U.S. HAA1 Govt. loans 1,000 959 1,022 461 227 234 State 5,999 4,991 4,212 4,659 Special district and Other2 stat. auth. Use of proceeds Total Edu Roads and cation bridges Util ities4 Hous Veter Other ans’ pur ings aid poses 8,714 10,246 9,496 9,165 9,507 10,249 8,499 10,470 24,495 22,073 22,408 20,210 5,278 4,981 4,311 4,709 2,642 1,689 1,458 767 5,214 4,638 5,654 5,513 2,068 1,910 2,639 1,045 9,293 6,741 8,335 8,176 208 473 344 360 451 580 540 141 448 328 689 222 865 564 793 862 1,097 721 158 400 641 974 1,005 558 1,182 967 887 1,177 756 864 761 565 611 1,558 789 700 2,178 1,939 1,906 2,361 2,237 2,079 1,456 1,067 1,669 2,738 2,403 1,475 595 460 366 516 442 220 314 228 251 343 698 297 36 53 258 9 1 62 58 85 11 110 4 64 372 612 363 595 711 664 154 257 380 236 866 424 56 39 241 178 8 334 15 21 110 9 53 1,119 775 678 1,063 1,058 799 930 482 1,006 1,939 826 637 375 544 1,145 2,048 690 36 550 141 631 1 Only bonds sold pursuant to 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser and payment to issuer, which occurs after date of sale. Total amount deliv ered3 4 Water, sewer, and other utilities. 5 Includes urban redevelopment loans. N o t e . — Security Industries Assn. data; par amounts of long-term issues based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. MARCH 1975 a SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions o f dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Total U.S. Govt.2 U.S. Govt. agency3 Bonds State and local (U.S.)4 Total Stock Total Publicly offered Privately placed Preferred Common 88,666 105,233 96,522 100,417 1973—Nov.. Dec.. 14,831 17,325 17,080 19,057 16,181 16,283 12,825 23,883 17,762 24,370 23,070 22,700 949 2,165 1,589 1,385 38,945 45,090 41,957 33,391 30,315 32,123 28,896 22,268 25,384 24,775 19,434 13,649 4,931 7,354 9,462 8,620 1,390 3,670 3,367 3,372 7,240 9,291 9,694 7,750 12,553 6,635 1970. 1971., 1972., 1973., 4,521 148 2,200 1,032 2,224 1,966 45 251 3,563 3,238 2,257 2,469 1,669 1,552 589 917 637 196 668 573 3,341 2.690 3,216 3,067 3,164 2,987 3,260 2,668 1,629 4,538 3.690 2,908 2,104 2,457 2,265 2,957 2,461 2,705 2,341 1,214 3,685 3,275 2,115 1,683 2,020 1,594 2,350 1,939 2,086 2,042 897 3,423 3,016 794 421 437 671 607 522 619 299 317 262 259 152 268 398 355 65 113 228 107 126 196 278 318 362 446 142 413 327 220 289 657 327 1974—Jan. F eb.... M a r... A p r..., M ay... June r. Ju ly '.. Aug.r . Sept.r . Oct.r. . N ov.., Gross proceeds, major groups of corporate issuers Manufacturing Commercial and miscellaneous Transportation Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1970............................................... 1971.............................................. 1972.............................................. 1973.............................................. 9,192 9,426 4,821 4,329 1,320 2,152 1,809 643 1,963 2,272 2,645 1,283 2,540 2,390 2,882 1,559 2,213 1,998 2,862 1,881 47 420 185 43 8,016 7,605 6,392 5,585 3,001 4,195 4,965 4,661 5,053 4,227 3,692 3,535 83 1,592 1,125 1,369 3,878 6,601 8,485 5,661 1,638 2,212 2,095 2,860 1973—Nov.................................... 383 485 93 18 61 145 92 285 241 226 4 6 584 569 496 319 296 350 499 27 692 693 122 115 867 1974—Jan. 6................................. 354 Feb..................................... 479 Mar.................................... Apr.................................... 1,193 847 May................................... 440 J u n e '................................. Ju ly '.................................. 1,051 601 Aug.' ................................. 186 S ep t.'................................. 690 O c t.'.................................. Nov.................................... 1,667 29 36 161 9 15 44 43 4 2 3 2 136 '55 52 238 332 311 257 38 45 92 109 124 143 71 56 71 139 93 62 47 29 110 89 5 76 6 44 5 62 14 50 301 336 1,192 536 850 446 837 859 318 862 384 1,391 739 249 293 449 685 75 288 300 217 296 695 224 142 372 310 289 660 355 242 364 331 435 60 4 25 21 5 3 1 53 485 783 691 95 239 491 776 462 218 776 366 27 87 58 47 44 39 65 44 48 90 54 Period 1 Gross proceeds are derived by multiplying principal amounts or number of units by offering price. 2 Includes guaranteed issues. 3 Issues not guaranteed. 4 See n o t e to table at bottom of opposite page. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ izations. 1 15 1 5 Public utility Communication 18 36 26 Real estate and financial 6 Beginning Jan. 1974 noncorporate figures are no longer published by the SEC. N o t e . —Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. A 42 SECURITY ISSUES □ MARCH 1975 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions o f dollars) Derivation of change, all issuers1 All securities Period Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1970....................... 1971....................... 1972....................... 1973....................... 38,707 46,687 42,306 33,559 9,079 9,507 10,224 11,804 29,628 37,180 32,082 21,754 29,495 31,917 27,065 21,501 6,667 8,190 8,003 8,810 22,825 23,728 19,062 12,691 9,213 14,769 15,242 12,057 2,411 1,318 2,222 2,993 6,801 13,452 13,018 9,064 1973—I I I .............. IV............... 6,532 10,711 2,150 4,378 4,382 6,334 4,521 7,013 1,579 3,786 2,941 3,227 2,012 3,698 571 591 1,441 3,107 1974_I.................. I I ................ I l l ............... 8,973 9,637 8,452 2,031 2,048 2,985 6,942 7,589 5,467 6,810 7,847 6,611 1,442 1,584 1,225 5,367 6,263 5,386 2,163 1,790 1,841 588 465 1,759 1,575 1,326 82 Type of issues Commercial and other 2 Manu facturing Period Transpor tation 3 Public utility Real estate and financial 1 Communi cation Bonds and notes Stocks Bonds and notes Stocks Bonds and notes Stocks Bonds and notes Stocks Bonds and notes Stocks Bonds and notes Stocks 1971....................... 1972....................... 1973....................... 6,585 1,995 801 2,534 2,094 658 827 1,409 -109 2,290 2,471 1,411 900 711 1,044 800 254 -9 3 6,486 5,137 4,265 4,206 4,844 4,509 3,925 3,343 3,165 1,600 1,260 1,399 5,005 7,045 3,523 2,017 2,096 1,181 1973—I I I . . .......... IV............... 165 -131 450 147 108 -1 6 2 247 460 414 176 -4 4 -1 3 1,217 1,068 557 1,506 752 1,051 77 575 284 1,225 154 431 1974—1.................. II................. I l l ............... 906 1,921 1,479 324 -1 2 -421 -1 1 698 189 363 213 -6 6 4 -3 7 -1 3 49 -3 5 12 -6 2,172 1,699 1,358 827 1,038 862 675 1,080 1,116 76 -7 222 1,662 877 1,194 20 82 88 1 Excludes investment companies. 2 Extractive and commercial and miscellaneous companies. 3 Railroad and other transportation companies. N o t e . —Securities and Exchange Commission estimates of cash trans actions only. As contrasted with data shown on preceding page, new issues exclude foreign sales and include sales of securities held by affiliated com panies, special offerings to employees, and also new stock issues and cash proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in ternal funds or with proceeds of issues for that purpose. OPEN-END INVESTMENT COMPANIES (In millions of dollars) Year Sales and redemption of own shares Sales 1 Redemp tions Net sales Assets (market value at end of period) Total 2 Other Cash position 3 1963.............. 1964.............. 1965.............. 2,460 3,404 4,359 1,504 1,875 1,962 952 25,214 1,528 29,116 2,395 35,220 1,341 1,329 1.803 1966.............. 1967.............. 1968.............. 4,671 4,670 6,820 2,005 2,745 3,841 2,665 34,829 1,927 44,701 2,979 52,677 2,971 2,566 3,187 1969.............. 1970.............. 1971.............. 6,717 4,624 5,145 3,661 2,987 4,751 3,056 48,291 1,637 47,618 r394 r55,045 3,846 3,649 r3,038 1972.............. 1973.............. 1974.............. 4,892 4,358 5,346 6,563 5,651 3,937 -1,671 59,831 -1,261 46,518 1,409 35,777 3,035 4,002 5,637 Sales and redemption of own shares Sales 1 Redemp tions 23,873 1974—Jan.. . Feb... 27,787 33,417 M ar... Apr... 31,858 M ay.. 42,135 Ju n e .. 49,490 July. . Aug... 44,445 Sept... O ct.. . 43,969 Nov... '52,007 Dec... 56,796 42,516 1975—J a n ... 30,140 1 Includes contractual and regular single-purchase sales, voluntary and contractual accumulation plan sales, and reinvestment of investment in come dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. Month Net sales Assets (market value at end of period) Total 2 Other Cash position 3 334 215 297 262 323 337 442 446 499 816 619 736 325 303 346 327 320 276 352 339 292 311 335 411 9 -8 8 -4 9 -6 5 3 61 90 127 207 505 284 325 47,094 45.958 44,423 42,679 41,015 40,040 37,669 35,106 31,985 37,115 36,366 35,777 4,226 4,447 4,406 4,426 4,389 4,461 4,609 4,953 5,078 5,652 5,804 5,637 42,863 41,511 40,017 38,253 36,626 35,579 33,060 30,153 26,907 31,463 30,562 30,140 1,067 428 639 39,573 6,055 33,518 N o t e . — Investment Company Institute data based on reports of mem bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. MARCH 1975 □ BUSINESS FINANCE A 43 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Year Profits before taxes In come taxes Profits after taxes Cash divi dends 1968.............. 1969.............. 1970.............. 1971.............. 1972.............. 1973.............. 1974.............. 87.6 84.9 74.0 83.6 99.2 122.7 141.0 39.9 40.1 34.8 37.5 41.5 49.8 55.8 47.8 44.8 39.3 46.1 57.7 72.9 85.2 23.6 24.3 24.7 25.0 27.3 29.6 32.7 Corporate capital Undis consump tributed tion profits allow ances1 24.2 20.5 14.6 21.1 30.3 43.3 52.5 Quarter 1972—IV ... 45.2 63.1 28.2 34.9 68.2 120.4 124.9 122.7 122.7 48.9 50.9 49.9 49.5 71.5 74.0 72.9 73.2 28.7 29.1 29.8 30.7 42.8 44.9 43.1 42.5 69.2 70.8 71.6 73.1 1974—1___ 135.4 II. . . 139.0 III ... 157.0 1 Includes depreciation, capital outlays charged to current accounts, and accidental damages. 108.2 1973—1. I I .... I II... IV ... 46.8 51.9 56.0 60.4 66.3 71.2 76.7 In come taxes Profits after taxes Cash divi dends Corporate capital Undis consump tributed tion profits allow ances 1 Profits before taxes 52.2 55.9 62.7 83.2 83.1 94.3 31.6 32.5 33.2 51.6 50.5 61.1 74.1 75.7 77.6 N o t e . —Dept, of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Net working capital End of period Total Cash U.S. Govt. securi ties Current liabilities Notes and accts. receivable U.S. Govt.1 Inven tories Other Total Other Notes and accts. payable Accrued Federal income taxes U.S. Other Govt.1 Other 1970.............................. 1971.............................. 187.4 204.9 492.3 518.8 50.2 55.7 7.7 10.7 4.2 3.5 201.9 208.8 193.3 200.3 35.0 39.7 304.9 313.9 6.6 4.9 204.7 207.3 10.0 12.2 83.6 89.5 1972—III..................... IV ..................... 219.2 224.3 547.5 563.1 57.7 60.5 7.8 9.9 2.9 3.4 224.1 230.5 212.2 215.1 42.8 43.6 328.3 338.8 4.7 4.0 212.1 221.6 12.7 14.1 98.8 99.1 1973—1......................... I I ....................... I l l ..................... IV ...................... 231,8 237.7 241.9 245.3 579.2 596.8 613.6 631.4 61.2 62.3 62.2 65.2 10.8 9.6 9.5 10.7 3.2 2.9 3.0 3.5 235.7 245.6 254.2 255.8 222.8 230.3 238.2 247.0 45.5 46.0 46.6 49.3 347.4 359.1 371.7 386.1 4.1 4.5 4.4 4.3 222.8 232.5 240.8 252.0 15.7 13.9 15.3 16.6 104.7 108.1 111.2 113.3 1974—1......................... 253.2 I I ....................... 257.4 I l l ..................... 263.6 653.9 673.3 696.0 62.8 62.2 63.9 11.7 10.4 10.7 3.2 3.4 3.5 265.6 278.7 284.1 258.9 269.7 282.7 51.6 48.8 51.1 400.7 415.8 432.4 4.5 4.7 5.1 256.7 268.4 276.6 18.7 17.4 20.5 120.7 125.3 130.2 1 Receivables from, and payables to, the U.S. Govt, exclude amounts offset against each other on corporations’ books. N o t e . —Based on Securities and Exchange Commission estimates, BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Period Total Durable Non durable Transportation Mining Public utilities Rail road Air Other Commu nications Electric andGas other Other1 Total (S.A. A.R.) 1971....................... 1972....................... 1973....................... 1974....................... 81.21 88.44 99.74 111.92 14.15 15.64 19.25 22.67 15.84 15.72 18.76 23.13 2.16 2.45 2.74 3.10 1.67 1.80 1.96 2.48 1.88 2.46 2.41 1.97 1.38 1.46 1.66 2.03 12.86 14.48 15.94 17.65 2.44 2.52 2.76 2.95 10.77 11.89 12.85 13.86 18.05 20.07 21.40 22.08 1972—III............... IV............... 21.86 25.20 3.86 4.77 3.87 4.61 .59 .63 .38 .47 .61 .63 .35 .40 3.67 4.01 .72 .73 2.84 3.39 4.97 5.57 87.67 91.94 1973—1.................. II................. I l l ............... IV................ 21.50 24.73 25.04 28.48 3.92 4.65 4.84 5.84 3.88 4.51 4.78 5.59 .63 .71 .69 .71 .46 .46 .48 .56 .52 .72 .57 .60 .32 .43 .44 .47 3.45 3.91 4.04 4.54 .50 .68 .77 .82 2.87 3.27 3.19 3.53 4.94 5.40 5.24 5.83 96.19 97.76 100.90 103.74 1974—1.................. I I ................ I l l ............... IV2.............. 24.10 28.16 28.23 31.44 4.74 5.59 5.65 6.69 4.75 5.69 5.96 6.73 .68 .78 .80 .83 .50 .64 .64 .72 .47 .61 .43 .45 .34 .49 .58 .63 3.85 4.56 4.42 4.82 .52 .75 .78 .90 3.19 3.60 3.39 5.05 5.46 5.57 107.27 111.40 113.99 114.40 1 Includes trade, service, construction, finance, and insurance. 2 Anticipated by business. 9.'67 N o t e . —Dept, of Commerce and Securities and Exchange Commission estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. A 44 REAL ESTATE CREDIT □ MARCH 1975 MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER (In millions o f dollars) End of year Type of holder, and type of property 1970 1971 End of quarter 1972 1973 IV 1974 I II III IV ' ALL HOLDERS............................................ 1- to 4-family................................................ Multifamily1................................................ Commercial.................................................. Farm ............................................................. 451,726 280,175 58,023 82,292 31,236 499,758 307,200 67,367 92,333 32,858 564,825 345,384 76,496 107,508 35,437 634,955 386,241 85,401 123,965 39,348 646,116 391,770 86,591 127,384 40,371 664,287 402,165 88,269 132,122 41,731 677,902 409,924 90,232 134,719 43,027 686,964 414,078 91,845 136,792 44,249 PRIVATE FINANCIAL INSTITUTIONS.. 1- to 4-family................................................ Multifamily1................................................ Commercial.................................................. Farm............................................................. 355,929 231,317 45,796 68,697 10,119 394,239 253,540 52,498 78,345 9,856 450,000 288,053 59,204 92,222 10,521 505,401 322,048 64,730 107,128 11,495 513,946 326,863 65,386 110,047 11,650 528,212 335,442 66,594 114,185 11,991 536,868 340,597 67,806 116,182 12,283 541,498 342,891 68,423 117,775 12,409 42,329 3,311 23,284 4,351 48,020 3,984 26,306 4,205 99,314 119,068 121,882 1- to 4-family............................................ Multifamily1............................................ Commercial.............................................. Farm ......................................................... 127,320 129,943 131,047 57,948 61,978 Mutual savings banks ................................... 73,275 1- to 4-family............................................ Multifamily1............................................. Commercial.............................................. Farm......................................................... 37,342 12,594 7,893 119 Savings and loan associations...................... 150,331 1- to 4-family............................................ Multifamily1............................................ Commercial.............................................. Life insurance companies............................. 124,970 13,830 11,531 74,375 82,515 57,004 5,778 31,751 4,781 67,556 67,998 6,932 38,696 5,442 73,231 69,374 7,046 39,855 5,607 73,957 72,253 7,313 41,926 5,828 74,264 38,641 14,386 8,901 50 41,650 15,490 10,354 62 44,247 16,843 12,084 57 44,462 17,011 12,425 59 44,426 17,081 12,698 59 174,250 206,182 231,733 236,136 243,400 142,275 17,355 14,620 75,496 167,049 20,783 18,350 76,948 187,750 22,524 21,459 81,369 191,223 22,763 22,150 81,971 1- to 4-family............................................ Multifamily1............................................ Commercial.............................................. Farm ......................................................... 26,676 16,061 25,989 5,649 24,604 16,773 28,518 5,601 22,350 17,153 31,767 5,678 22,053 18,431 34,889 5,996 21,804 18,566 35,617 5,984 FEDERAL AND RELATED AGENCIES.. 1- to 4-family................................................ Multifamily1................................................ Commercial.................................................. 32,992 21,993 3,359 16 7,624 39,357 26,453 4,555 11 8,338 45,790 30,147 6,086 55,664 35,454 8,489 9,557 Government National Mortgage Association 5,222 5,323 5,113 2,490 2,623 1,330 2,699 83,228 74,792 44,593 17,202 12,938 59 247,624 200,551 23,623 23,450 84,509 62,535 39,784 9,643 67,694 43,188 10,644 72,246 45,748 11,790 11,721 12,339 13,108 13,862 14,708 4,029 3,604 1,189 2,415 3,618 1,194 2,424 4,052 4,848 1,300 1,400 1,500 1,600 3,514 3,619 3,765 2,037 1,728 2,083 1,817 26,559 28,641 29,578 13,842 398 421 387 450 837 1,200 3,505 2 ,111 3,389 3,476 2,517 872 3,338 734 2,199 1,139 2,013 1,463 Federal National Mortgage Association.. . . 15,502 19,791 24,175 15,181 321 17,791 1- to 4-family............................................ Multifamily1............................................ 17,697 2,094 20,370 3,805 Federal land banks (farm only).................. 7,187 7,917 9,107 11,071 11,635 12,350 13,050 Federal Home Loan Mortgage Corporation. 357 964 2,604 2,637 1,754 35 2,446 158 2,472 165 3,191 2,951 240 3,713 357 934 30 1,789 10,865 11,798 1- to 4-family............................................ Multifamily1............................................ 16,681 1,110 550 650 452 5,815 9,109 452 3,154 1- to 4-family............................................ Multifamily*............................................ 5,620 195 8,745 364 INDIVIDUALS AND OTHERS3................ 1- to 4-family................................................ Multifamily1................................................ Commercial.................................................. Farm............................................................. 62,805 26,865 8,868 13,579 13,493 66,162 27,207 10,314 13,977 14,664 69,035 27,184 11,206 15,286 15,359 73,890 28,739 12,182 16,837 16,132 GNMA Pools ................................................ 3,153 1 1 Structure of 5 or more units. 2 Includes loans held by nondeposit trust companies but not bank trust departments. 3 Includes some U.S. agencies for which amounts are small or separate data are not readily available. 86,258 58,430 37,168 8,923 330 437 1- to 4-family............................................ Multifamily1............................................. 249,303 201,910 23,784 23,609 22,382 19,984 37,571 6,321 1- to 4-family............................................ Farm......................................................... Federal Housing and Veterans Administra tions ....................................................... 74,890 44,649 17,225 12,956 60 21,914 19,566 36,783 6,246 2,902 2,304 16 819 73,950 7,430 43,639 6,028 21,755 18,858 36,511 6,104 1- to 4-family............................................ Multifamily 1............................................ Commercial.............................................. 767 2,770 2,542 11 197,008 23,342 23,050 73,539 7,415 43,011 5,978 596 704 1,964 1,550 24,875 20,516 4,359 10,431 434 73,740 27,739 12,282 17,337 16,382 642 758 1,980 1,639 21,691 4,868 1,337 2,715 688 812 23,258 5,383 3,414 299 12,973 1,600 3,248 734 866 3,900 23,778 5,800 4,586 4,217 369 13,892 11,326 472 12,454 519 13,336 556 73,540 26,939 12,032 17,937 16,632 73,340 26,139 11,782 18,537 16,882 73,220 25,439 11,632 19,017 17,132 N o t e . — Based on data from various institutional and Govt, sources, with some quarters estimated in part by Federal Reserve in conjunction with the Federal Home Loan Bank Board and the Dept, of Commerce. Separation of nonfarm mortgage debt by type of property, where not reported directly, and interpolations and extrapolations where required, estimated mainly by Federal Reserve. M ARCH 1975 □ REAL E S TA TE C R E D IT A 45 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION— SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA Mortgage holdings End of period FHLMC Mortgage commitments Mortgage transactions (during period) Total i FHAinsured VAguaranteed Pur chases 1971. 1972. 1973. 1974. 17,791 19,791 24,175 29,578 12,681 14,624 16,852 19,189 5,110 5,112 6,352 8,310 3,574 3,699 6,127 6,953 1974—Jan .. . Feb... Mar... A pr... M ay.. Ju n e.. Ju ly .. Aug... Sept.. O ct... Nov... Dec... 24,424 24,529 24,875 25,263 25,917 26,559 27,304 28,022 28,641 29,139 29,407 29,578 17,008 17,050 17,315 17,450 17,725 17,966 18,250 18,526 18,758 18,966 19,083 19,189 6,348 6,336 6,340 6,503 6,794 7,079 7,384 7,704 7,994 8,206 8,291 8,310 350 242 462 526 821 770 886 868 760 612 379 278 1975-- J a n .. . 29,670 19,231 8,318 208 Mortgage holdings Mortgage transactions (during period) Made during period 336 211 71 5 1 1 2 Out stand ing Total FHA VA Con ven tional Pur chases 9,828 8,797 8,914 10,765 6,497 8,124 7,889 7,960 968 1,789 2,604 4,586 821 1,503 1,743 1,904 147 286 861 2,682 778 1,298 1,334 2,191 64 408 409 52 110 489 1,646 2,154 1,145 537 1,175 1,202 997 878 201 231 6,715 6,768 7,913 9,292 9,475 9,019 9,044 9,115 9,043 8,987 8,532 7,960 2,621 2,625 2,638 2,722 2,986 3,191 3,309 3,451 3,713 4,107 4.352 4,586 1,736 1,730 1,724 1,756 1,827 1,877 1,883 1,886 1,896 1,910 1,908 1,904 885 895 914 967 1,159 1,314 1,426 1,565 1,817 2,197 2,445 2,682 34 21 29 101 281 222 129 155 273 410 270 266 8 6 2 146 Sales Mortgage commitments 7,285 i Includes conventional loans not shown separately. from FNMA and FHLMC, respectively. N o t e . —Data For F N M A : Holdings include loans used to back bond issues guaranteed by GNMA. Commitments include some multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA’s free market auction system, and through the FNM AGNMA Tandem Plan (Program 18). Sales 7 12 16 Made during period Out stand ing i ,606 1,629 4,553 182 198 186 2,390 26 49 595 400 1,486 628 1,127 81 69 30 28 34 161 185 748 1,037 2,221 2,598 3,583 3,500 3,278 2,871 2,621 2,390 For FHLM C: Data for 1970 begin with Nov. 26, when the FHLMC became operational. Holdings and transactions cover participations as well as whole loans. Holdings include loans used to back bond issues guaranteed by GNMA. Commitments cover the conventional and Govt.underwritten loan programs. TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages Terms1 Period Yields (per cent) in primary market FHAinsured loans—Yield in private secondary market5 Contract rate (per cent) Fees and charges (per cent)2 Maturity (years) Loan/price ratio (per cent) Purchase price (thous. of dollars) Loan amount (thous. of dollars) FHLBB series 3 HUD series4 1970........................... 1971........................... 1972........................... 1973........................... 1974........................... 8.27 7.60 7.45 7.78 8.71 1.03 .87 .88 1.11 1.30 25.1 26.2 27.2 26.3 26.3 71.7 74.3 76.8 77.3 75.8 35.5 36.3 37.3 37.1 40.1 25.2 26.5 28.1 28.1 29.8 8.44 7.74 7.60 7.95 8.92 8.52 7.75 7.64 8.30 9.22 1974—J a n .............. . Feb................. Mar................ Apr................. May............... June............... July................ Aug................ Sept................ Oct................. Nov................ Dec................. 8.33 8.40 8,43 8.47 8.55 8.65 8.75 8.87 8.97 8.95 9.04 9.13 1.16 1.33 1.35 1.21 1.20 1.25 1.28 1.32 1.30 1.37 1.40 1.44 26.4 25.9 26.4 26.1 25.8 26.3 26.1 26.4 26.1 26.7 26.2 27.5 76.3 76.5 77.3 77.3 76.8 76.9 74.4 75.3 74.8 74.7 73.6 75.5 38.8 37.8 39.1 38.5 37.9 39.7 40.5 40.2 42.4 42.3 41.3 42.4 28.9 28.5 29.5 29.2 28.8 30.1 29.6 29.5 31.1 30.7 30.2 31 .3 8.52 8.62 8.64 8.67 8.74 8.85 8.96 9.09 9.19 9.17 9 27 9.37 8.65 8.55 8.60 8.90 9.15 9.25 9.40 9.60 9.80 9.70 9.55 9.45 8.54 8.66 9.17 9.46 9.46 9.85 10.30 10.38 10.13 1975—Jan.*.............. 9.12 1.51 27.1 75.1 43.0 32.0 9.37 9.15 8.99 1 Weighted averages based on probability sample survey of character istics of mortgages originated by major institutional lender groups (in cluding mortgage companies) for purchase of single-family homes, as compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are not strictly comparable with earlier figures beginning Jan. 1973. 2 Fees and charges—related to principal mortgage amount—include loan commissions, fees, discounts, and other charges, but exclude closing costs related solely to transfer of property ownership. 3 Effective rate, reflecting fees and charges as well as contract rates NOTE TO TABLE AT BOTTOM OF PAGE A-46: American Life Insurance Association data for new commitments of $100,000 and over each on mortgages for multifamily and nonresidential nonfarm properties located largely in the United States. The 15 companies account for a little more than one-half of both the total assets and the nonfarm mortgages held by all U.S. life insurance companies. Averages, which are based loan composition on number of loans, vary in part withof loan, and loan by type and location of property, type and purpose 9.03 7.70 7.52 9.55 9.51 (as shown in first column of this table) and an assumed prepayment at end of 10 years. 4 Rates on first mortgages, unweighted and rounded to the nearest 5 basis points. 5 Based on opinion reports submitted by field offices of prevailing local conditions as of the first of the succeeding month. Yields are derived from weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed pre payment at the end of 15 years. Any gaps in data are due to periods of adjustment to changes in maximum permissible contract interest rates. amortization and prepayment terms. Data for the following are limited to cases where information was available or estimates could be made: capitalization rate (net stabilized property earnings divided by property value); debt coverage ratio (net stabilized earnings divided by debt service); and per cent constant (annual level payment, including principal and interest, per $100 of debt). All statistics exclude construction loans, increases in existing loans in a company’s portfolio, reapprovals, and loans secured by land only. A 46 REAL ESTATE CREDIT □ MARCH 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 Sept. 23 Oct. 7 Oct. 21 1975 Nov. 4 Nov. 18 Dec. 2 Dec. 16 Dec. 30 Jan. 13 Jan. 27 Feb. 10 Feb. 24 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................ Accepted............................... Conventional loans Offered i ................................. Accepted............................... 57.2 38.2 46.6 29.7 34.5 26.0 47.8 24.7 25.7 17.6 52.5 23.3 49.6 43.3 35.7 31.8 25.3 21.2 41.4 28.6 24.6 18.1 36.2 23.8 22.1 19.0 26.1 23.3 14.1 12.2 20.4 12.1 20.6 6.8 24.0 12.0 20.1 18.5 17.2 10.1 17.9 14.9 11.1 10.6 14.8 9.1 20.0 9.1 Average yield (per cent) on short term commitments2 Govt.-underwritten loans........ Conventional loans.................. 10.56 10.66 10.32 10.46 10.11 10.27 9.93 10.11 9.81 9.92 9.61 9.80 9.52 9.72 9.47 9.59 9.37 9.50 9.12 9.39 8.98 9.20 8.87 9.04 1 Mortgage amounts offered by bidders are total bids received. 2 Average accepted bid yield (before deduction of 38 basis-point fee paid for mortgage servicing) for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNMA commitment fees and FNMA stock purchase and holding require ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Holder Dec. 31, 1972 June 30, 1973 Sept. 30, 1973 Dec. 31, 1973 Mar. 31, 1974 June 30, 1974 Sept. 30, 1974 All holders........................... ...................... FH A ......................................................... VA.............................................. ............ Commercial banks...................................... F H A ......................................................... VA............................................................ Mutual savings banks................................. F H A ......................................................... VA............................................................ Savings and loan assns............................... F H A ......................................................... VA............................................................ Life insurance cos........................................ ........................................................ VA............................................................ Others.......................................................... FH A ......................................................... VA............................................................ 131.1 86.4 44.7 11.7 8.5 3.2 28.6 16.0 12.6 28.9 15.4 13.5 14.7 10.0 4.7 47.2 36.5 10.7 133.6 86.4 47.2 11.7 8.5 3.2 28.7 15.8 12.9 133.8 85.6 48.2 11.7 8.4 3.3 28.6 15.7 12.9 135.0 85.0 50.0 11.5 8.2 3.3 28.4 15.5 12.9 136.7 85.0 51.7 11.1 7.8 3.3 28.2 15.3 12.9 137.8 84.9 52.9 11.0 7.6 3.4 27.9 15.1 12.8 138.6 84.1 54.5 10.8 7.4 3.4 27.7 14.9 12.8 29.7 13.1 8.8 4.3 56.1 29.8 12.9 8.7 4.2 57.4 } 29.8 } 14.0 9.5 FH A 4.5 49.4 N o t e . —VA-guaranteed residential mortgage debt is for 1- to 4-family properties while FHA-insured includes some debt in multifamily structures. 30.1 13.7 9.3 4.4 50.0 1 29.7 13.6 9.2 4.4 52.1 } 29.8 13.3 9.0 4.3 54.3 } Detail by type of holder partly estimated by Federal Reserve for first and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Number of loans Total amount committed (millions of (dollars) 912 1,664 2,132 2,140 1973—Sept. Oct.. Nov. Dec., 1974—Jan.. Feb.. Mar. Apr. May June July. Aug. Sept. Period 197 197 197 197 0 1 2 3 See N ote on p. A-45. Averages Loan amount (thousands of dollars) Contract interest rate (per cent) Maturity (yrs./mos.) Loanto-value ratio (per cent) Capitaliza tion rate (per cent) Debt coverage ratio Per cent constant 2,341.1 3.982.5 4.986.5 4,833.3 2,567 2,393 2,339 2,259 9.93 9.07 8.57 8.76 22/8 22/10 23/3 23/3 74.7 74.9 75.2 74.3 10.8 10.0 9.6 9.5 1.32 1.29 1.29 1.29 11.1 10.4 9.8 10.0 176 161 95 55 351.5 203.3 313.5 152.8 1,997 1,263 3,300 2,778 8.94 9.09 9.17 9.18 22/6 22/6 22/2 23/3 73.7 73.6 74.3 74.8 9.3 9.4 9.7 9.9 1.23 1.24 1.25 1.27 10.3 10.3 10.4 10.3 61 90 117 141 148 147 121 105 95 91.5 209.4 238.8 306.7 352.4 287.5 234.6 312.4 241.6 1,501 2,327 2,041 2,175 2,381 1,956 1,939 2,975 2,543 9.07 9.10 8.99 9.02 9.31 9.35 9.60 9.80 10.04 20/11 23/1 21/11 21/9 21/11 20/10 20/0 22/10 20/11 73.7 73.6 74.2 73.8 74.2 75.7 74.1 74.3 74.4 9.7 9.8 9.6 9.9 10.0 10.1 10.1 10.2 10.3 1.24 1.33 1.31 1.33 1.30 1.24 1.26 1.31 1.29 10.4 10.2 10.1 10.2 10.4 10.7 10.8 10.7 11.1 MARCH 1975 □ CONSUMER CREDIT A 47 TOTAL CREDIT (In millions of dollars) Instalment End of period Total Auto mobile paper Total Noninstalment Other consumer goods paper Home improve ment loans i Personal loans Total Single payment loans Charge accounts Credit cards2 Retail outlets Service credit 1965.................... 1966.................... 1967.................... 1968.................... 1969.................... 89,883 96,239 100,783 110,770 121,146 70,893 76,245 79,428 87,745 97,105 28,437 30,010 29,796 32,948 35,527 18,483 20,732 22,389 24,626 28,313 3,736 3,841 4,008 4,239 4,613 20,237 21,662 23,235 25,932 28,652 18,990 19,994 21,355 23,025 24,041 7,671 7,972 8,558 9,532 9,747 5,724 5,812 6,041 5,966 5,936 706 874 1,029 1,227 1,437 4,889 5,336 5,727 6,300 6,921 1970..................... 1971..................... 1972..................... 1973..................... 1974..................... 127,163 138,394 157,564 180,486 190,121 102,064 111,295 127,332 147,437 156,124 35,184 38,664 44,129 51,130 51,689 31,465 34,353 40,080 47,530 52,009 5,070 5,413 6,201 7,352 8,162 30,345 32,865 36,922 41,425 44,264 25,099 27,099 30,232 33,049 33,997 9,675 10,585 12,256 13,241 12,979 6,163 6,397 7,055 7,783 8,012 1,805 1,953 1,947 2,046 2,122 7,456 8,164 8,974 9,979 10,884 1974—Jan........... Feb........... Mar.......... Apr........... May......... June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec.......... 178,686 177,522 177,572 179,495 181,680 183,425 184,805 187,369 187,906 188,023 188,084 190,121 146,575 145,927 145,768 147,047 148,852 150,615 152,142 154,472 155,139 155,328 155,166 156,124 50,617 50,386 50,310 50,606 51,076 51,641 52,082 52,772 52,848 52,736 52,325 51,689 47,303 46,781 46,536 47,017 47,588 48,099 48,592 49,322 49,664 49,986 50,401 52,009 7,303 7,343 7,430 7,573 7,786 7,930 8,068 8,214 8,252 8,287 8,260 8,162 41,352 41,417 41,492 41,851 42,402 42,945 43,400 44,164 44,375 44,319 44,180 44,264 32,111 31,595 31,804 32,448 32,828 32,810 32,663 32,897 32,767 32,695 32,918 33,997 13,117 13,159 13,188 13,315 13,331 13,311 13,192 13,202 13,131 13,003 12,950 12,979 6,894 6,136 6,097 6,556 6,948 7,002 6,936 6,983 6,876 7,027 7,174 8,012 1,981 1,882 1,842 1,878 1,999 2,104 2,204 2,282 2,277 2,156 2,144 2,122 10,119 10,418 10,677 10,699 10,550 10,393 10,331 10,430 10,483 10,509 10,650 10,884 1975—Jan........... 187,080 153,952 50,947 51,142 8,048 43,815 33,128 12,675 7,162 2,153 11,138 1 Holdings of financial institutions; holdings of retail outlets are in cluded in “Other consumer goods paper.” 2 Service station and miscellaneous credit-card accounts and homeheating-oil accounts. N o t e . —Consumer credit estimates cover loans to individuals for household, family, and other personal expenditures, except real estate mortgage loans. For back figures and description of the data, see “Con sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics , 1965, and B u l l e t i n s for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment End of period Automobile paper Total Total Other consumer goods paper Purchased Credit Direct homes cards 1965..................... 1966..................... 1967..................... 1968..................... 1969..................... 35,652 38,265 40,630 46,310 50,974 28,962 31,319 33,152 37,936 42,421 10,209 11,024 10,972 12,324 13,133 5,659 5,956 6,232 7,102 7,791 1970..................... 1971..................... 1972..................... 1973..................... 1974..................... 53,867 60,556 70,640 81,248 84,010 45,398 51,240 59,783 69,495 72,510 12,918 13,837 16,320 19,038 18,582 7,888 9,277 10,776 12,218 11,787 1974—Jan........... Feb........... Mar.......... Apr........... May......... June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec.......... 81,081 80,909 80,918 81,750 82,527 83,417 84,078 84,982 85,096 84,887 84,360 84,010 69,429 69,246 69,232 69,944 70,721 71,615 72,384 73,302 73,455 73,372 72,896 72,510 18,885 18,770 18,775 18,896 19,037 19,220 19,377 19,511 19,389 19,246 18,981 18,582 1975—Jan........... 82,986 71,776 18,230 See also N ote to table above. Nonin stalment 4,166 4,681 5,469 1,307 2,639 4,423 5,786 7,223 7,645 12,113 12,028 11,985 12,039 12,100 12,169 12,250 12,344 12,314 12,195 12,031 11,787 11,581 Home improve ment Other Mobile loans —• " Personal loans Other Check credit 6,357 7,011 7,'748 Single payment loans 8,160 8,699 6,690 6,946 7,478 8,374 8,553 5,387 6,082 2,571 2,647 2,731 2,858 2,996 798 1,081 3,792 4,419 5,288 6,649 8,242 7,113 4,501 5,122 6,054 6,414 3,071 3,236 3,544 3,982 4,458 1,336 1,497 1,789 2,144 2,424 9,280 10,050 11,158 12,187 12,958 8,469 9,316 10,857 11,753 11,500 7,237 7,285 7,333 7,399 7,491 7,564 7,623 7,681 7,706 7,709 7,700 7,645 6,826 6,770 6,667 6,761 6,887 7,076 7,222 7,491 7,638 7,749 7,846 8,242 6,041 6,063 6,082 6,208 6,323 6,420 6,484 6,541 6,527 6,530 6,469 6,414 3,944 3,937 3,958 4,028 4,135 4,224 4,316 4,409 4,445 4,480 4,490 4,458 2,167 2,173 2,169 2,180 2,199 2,230 2,266 2,312 2,348 2,376 2,362 2,424 12,216 12,220 12,263 12,433 12,549 12,712 12,846 13,013 13,088 13,087 13,017 12,958 11,652 11,663 11,686 11,806 11,806 11,802 11,694 11,680 11,641 11,515 11,464 11,500 7,587 8,325 6,323 4,399 2,448 12,883 11,210 A 48 C O N S U M E R C R E D IT □ M ARCH 1975 INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies End of period Total Other consumer goods paper Auto mobile paper Mobile homes Other financial lenders Home improve ment loans Retail outlets Credit unions 10,058 10,315 10,688 11,481 12,485 8,289 9,315 10,216 11,717 13,722 7,324 8,255 9,003 10,300 12,028 965 1,060 1,213 1,417 1,694 Mis cellaneous lenders i Auto mobile dealers Other retail outlets 9,791 10,815 11,484 12,018 13,116 315 277 287 281 250 9,476 10,538 11,197 11,737 12,866 Total 1965....................... 1966....................... 1967....................... 1968....................... 1969....................... 23,851 24,796 24,576 26,074 27,846 9,218 9,342 8,627 9,003 9,412 1970....................... 1971....................... 1972....................... 1973....................... 1974....................... 27,678 28,883 32,088 37,243 38,925 9,044 9,577 10,174 11,927 12,435 2,464 2,561 2,916 3,378 3,570 3,237 3,052 3,589 4,434 4,751 199 247 497 917 993 12,734 13,446 14,912 16,587 17,176 15,088 17,021 19,511 22,567 25,216 12,986 14,770 16,913 19,609 22,116 2,102 2,251 2,598 2,958 3,100 13,900 14,151 15,950 18,132 19,473 218 226 261 299 286 13,682 13,925 15,689 17,833 19,187 1974—Jan.............. Feb.............. Mar............. Apr............. M ay............ June............ July............. Aug............. Sept............. Oct.............. Nov............. Dec............. 37,140 37,148 37,005 37,291 37,751 38,159 38,479 38,943 38,921 38,901 38,803 38,925 11,754 11,710 11,624 11,684 11,810 11,957 12,040 12,267 12,345 12,458 12,462 12,435 3,392 3,406 3,324 3,364 3,413 3,449 3,505 3,539 3,573 3,597 3,603 3,570 4,460 4,486 4,497 4,547 4,583 4,626 4,664 4,680 4,662 4,658 4,611 4,751 940 968 1,018 1,057 1,097 1,114 1,118 1,097 1,073 1,054 1,021 993 16,594 16,578 16,542 16,639 16,848 17,013 17,152 17,360 17,268 17,134 17,106 17,176 22,301 22,413 22,562 22,753 23,203 23,630 23,968 24,677 25,085 25,204 25,195 25,216 19,429 19,430 19,550 19,704 20,053 20,501 20,825 21,402 21,792 21,893 21,975 22,116 2,872 2,983 3,012 3,049 3,150 3,129 3,143 3,275 3,293 3,311 3,220 3,100 17,705 17,120 16,969 17,059 17,177 17,211 17,311 17,550 17,678 17,851 18,272 19,473 296 293 292 293 294 296 297 299 298 296 292 286 17,409 16,827 16,677 16,766 16,883 16,915 17,014 17.251 17^380 17,555 17,980 19,187 1975—Jan.............. 38.340 12,315 3,559 4,642 967 16.857 25,032 21,966 3,066 18,804 282 18,522 i 4,343 4,925 5,069 5,424 5,'775 Total 232 214 192 166 174 Other Per sonal loans Savings and loan associations and mutual savings banks. See also N o te to table at top of preceding page. FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT (Per cent per annum) Commercial banks Finance companies New automo biles (36 mos.) Mobile homes (84 mos.) Other consumer goods (24 mos.) Personal loans (12 mos.) Creditcard plans 1973—Jan.. Feb. Mar. Apr. May June July. Aug. Sept. Oct.. Nov. Dec. 10.01 10.05 10.04 10.04 10.05 10.08 10.10 10.25 10.44 10.53 10.49 10.49 10.54 10.76 10.67 10.64 10.84 10.57 10.84 10.95 11.06 10.98 11.19 11.07 12.46 12.51 12.48 12.50 12.48 12.57 12.51 12.66 12.67 12.80 12.75 12.86 12.65 12.76 12.71 12.74 12.78 12.78 12.75 12.84 12.96 13.02 12.94 13.12 1974—Jan.. Feb., Mar. Apr. May June July. Aug. Sept. O ct.. Nov. Dec. 10.55 10.53 10.50 10.51 10.63 10.81 10.96 11.15 11.31 11.53 11.57 11.62 11.09 11.25 10.92 11.07 10.96 11.21 11.46 11.71 11.72 11.94 11.87 11.71 12.78 12.82 12.82 12.81 12.88 13.01 13.14 13.10 13.20 13.28 13.16 13.27 1975—Jan.. 11.62 11.66 13.28 Month New Used 17.13 17.16 17.19 17.19 17.22 17.24 17.21 17.22 17.23 17.23 17.23 17.24 11.89 11.86 11.85 11.88 11.91 11.94 12.02 12.13 12.28 12.34 12.40 12.42 16.08 16.20 16.32 16.44 16.52 16.61 16.75 16.86 16.98 17.11 17.21 17.31 12.96 13.02 13.04 13.00 13.10 13.20 13.42 13.45 13.41 13.60 13.47 13.60 17.25 17.24 17.23 17.25 17.25 17.23 17.20 17.21 17.15 17.17 17.16 17.21 12.39 12.33 12.29 12.28 12.36 12.50 12.58 12.67 12.84 12.97 13.06 13.10 16.56 16.62 16.69 16.76 16.86 17.06 17.18 17.32 17.61 17.78 17.88 17.89 13.60 17.16 13.08 17.27 N o t e . —Rates are reported on an annual percentage rate basis as specified in Regulation Z (Truth in Lending) of the Board of Governors. Commercial bank rates are “most common” rates for direct loans with Automobiles Mobile homes Other consumer goods Personal loans 12.51 19.04 21.00 12.54 18.92 20.79 12.73 18.88 20.76 12.77 18.93 20.55 12.90 18.69 20.52 13.12 18.77 20.65 13.24 18.90 20.68 13.15 18.69 20.57 13.07 18.90 20.57 13.21 19.24 20.78 13.42 19.30 20.93 13.60 19.49 '21.16 13.60 19.58 21.24 specified maturities; finance company rates are weighted averages for purchased contracts (except personal loans). For back figures and descrip tion of the data, see Bulletin for Sept. 1973. MARCH 1975 □ CONSUMER CREDIT A 49 INSTALMENT CREDIT EXTENDED AND REPAID (In millions of dollars) Type Period Total Automobile paper Other consumer goods paper Holder Home improve ment loans Personal loans Commercial banks Finance companies Other financial lenders Retail outlets Extensions 1966........................... 1967........................... 1968........................... 1969........................... 82,832 87,171 99,984 109,146 27,192 26,320 31,083 32,553 26,329 29,504 33,507 38,332 2,223 2,369 2,534 2,831 27,088 28,978 32,860 35,430 30,073 31,382 37,395 40,955 25,897 26,461 30,261 32,753 10,368 11,238 13,206 15,198 16,494 18,090 19,122 20,240 1970........................... 1971........................... 1972........................... 1973........................... 1974........................... 112,158 124,281 142,951 165,083 166,478 29,794 34,873 40,194 46,453 42,756 43,873 47,821 55,599 66,859 71,077 2,963 3,244 4,006 4,728 4,650 35,528 38,343 43,152 47,043 47,995 42,960 51,237 59,339 69,726 69,554 31,952 32,935 38,464 43,221 41,809 15,720 17,966 20,607 23,414 24,510 21,526 22,143 24,541 28,722 30,605 1974—Jan................. Feb................. Mar................ Apr................. May............... June............... July................ Aug................ Sept................ Oct................. Nov................ Dec................. 13,714 13,541 13,823 14,179 14,669 14,387 14,635 14,394 14,089 13,626 12,609 12,702 3,492 3,389 3,484 3,545 3,769 3,731 3,812 3,887 3,835 3,369 3,062 3,205 5,662 5,647 5,933 6,034 6,156 6,043 6,164 5,993 5,935 5,948 5,700 5,798 373 409 424 447 468 425 416 388 302 348 321 294 4,187 4,096 3,982 4,153 4,276 4,188 4,243 4,126 4,017 3,961 3,526 3,405 5,715 5,794 5,710 5,838 6,023 6,076 6,129 6,034 6,050 5,600 5,390 5,012 3,693 3,656 3,497 3,671 3,832 3,729 3,685 3,476 3,408 3,229 2,823 3,240 1,911 1,861 1,976 2,054 2,140 2,040 2,201 2,290 2,079 2,160 1,863 1,901 2,395 2,230 2,640 2,616 2,674 2,542 2,620 2,594 2,552 2,637 2,533 2,549 1975—Jan................. 12,859 3,348 5,430 289 3,792 5,368 3,068 2,048 2,375 Repayments 1966........................... 1967........................... 1968........................... 1969........................... 77,480 83,988 91,667 99,786 25,619 26,534 27,931 29,974 24,080 27,847 31,270 34,645 2,118 2,202 2,303 2,457 25,663 27,405 30,163 32,710 27,716 29,549 32,611 36,470 24,952 26,681 28,763 30,981 9,342 10,337 11,705 13,193 15,470 17,421 18,588 19,142 1970........................... 1971........................... 1972........................... 1973........................... 1974........................... 107,199 115,050 126,914 144,978 157,791 30,137 31,393 34,729 39,452 42,197 40,721 44,933 49,872 59,409 66,598 2,506 2,901 3,218 3,577 3,840 33,835 35,823 39,095 42,540 45,156 40,398 45,395 50,796 60,014 66,539 31,705 31,730 35,259 38,066 40,127 14,354 16,033 18,117 20,358 21,861 20,742 21,892 22,742 26,540 29,264 1974—Jan................. Feb................. Mar................ Apr................. May............... June............... July................ Aug............... Oct................. Nov................ Dec................. 12,797 12,870 13,206 13,026 13,407 13,301 13,310 12,882 13,412 13,224 13,009 13,516 3,433 3,394 3,544 3,498 3,601 3,577 3,563 3,443 3,604 3,470 3,423 3,668 5,193 5,340 5,596 5,483 5,607 5,615 5,610 5,444 5,700 5,499 5,561 6,037 356 323 308 312 315 335 320 309 279 321 325 341 3,815 3,813 3,758 3,733 3,884 3,774 3,817 3,686 3,829 3,934 3,700 3,470 5,254 5,430 5,479 5,470 5,573 5,564 5,541 5,463 5,808 5,542 5,671 5,803 3,418 3,423 3,452 3,375 3,528 3,405 3,513 3,166 3,371 3,250 2,981 3,308 1,823 1,692 1,827 1,784 1,855 1,835 1,819 1,851 1,723 1,962 1,860 1,822 2,302 2,325 2,448 2,397 2,451 2,497 2,437 2,402 2,510 2,470 2,497 2,583 1975—Jan................. 13,260 3,534 5.549 336 3,841 5,669 3,331 1 .827 2,433 Net change 1966........................... 1967........................... 1968........................... 1969........................... 5,352 3,183 8,317 9,360 1,573 -2 1 4 3,152 2,579 2,249 1,657 2,237 3,687 105 167 231 374 1,425 1,573 2,697 2,720 2,357 1,833 4,784 4,485 945 -2 2 0 1,498 1,772 1,026 901 1,501 2,005 1,024 669 534 1,098 1970........................... 1971........................... 1972........................... 1973........................... 1974........................... 4,959 9,231 16,037 20,105 8,687 -3 4 3 3,480 5,465 7,001 559 3,152 2,888 5,727 7,450 4,479 457 343 788 1,151 810 1,693 2,520 4,057 4,503 2,839 2,977 5,842 8,543 9,712 3,015 -1 6 8 1,205 3,205 5,155 1,682 1,366 1,933 2,490 3,056 2,649 784 251 1,799 2,182 1,341 1974—Jan................. Feb................. Mar................ Apr................. May............... June............... July................ A ug................ Sept................ Oct................. Nov................ Dec................. 917 671 617 1,153 1,262 1,086 1,325 1,512 677 402 -4 0 0 -8 1 4 59 -5 -6 0 47 168 154 249 444 231 -101 -361 -4 6 3 469 307 337 551 549 428 554 549 235 449 139 -239 17 86 116 135 153 90 96 79 23 27 -4 -4 7 372 283 224 420 392 414 426 440 188 27 -174 -6 5 461 364 231 368 450 512 588 571 242 58 -281 -791 275 233 45 296 304 324 172 310 37 -21 -158 -6 8 88 169 149 270 285 205 382 439 356 198 3 79 93 -9 5 192 219 223 45 183 192 42 167 36 -3 4 1975—Jan................. -401 -186 -119 -4 7 -4 9 -301 -263 221 -5 8 N o t e . —Monthly estimates are seasonally adjusted and include adjust ments for differences in trading days. Annual totals are based on data not seasonally adjusted. Estimates are and often include based on accounting records purchases and salesfinance charges. Renewals and refinancing of loans, of in stalment paper, and certain other transactions may increase the amount of extensions and repayments without affecting the amount outstanding. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics , 1965, and B u l l e t i n s for Dec. 1968 and Oct. 1972. A 50 INDUSTRIAL PRODUCTION: S.A. □ MARCH 1975 MARKET GROUPINGS (1967= 100) Grouping Total index................................... Products, total.................................. Final products ............................... Consumer goods...................... Equipment................................ Intermediate products.................. Materials........................................... 1967 pro por tion 1974 aver age 1974 Feb. Mar. Apr. May June 100.0 124.1 124.6 124.7 124.9 125.7 125. July 1975 Aug. Sept. Oct. Nov. Dec, Jan.* Feb.* 125.5 125.2 125.6 124.8 121.7 117.7 113.7 110.3 62.21 123.1 122.4 122.6 122.7 123.8 124.0 124.0 123.5 123.6 122.9 121.4 118.5 115.7 113.0 48.95 121.7 120.6 121.0 120.8 122.4 122.6 122. 28.53 20.42 13.26 37.79 128.8 111.8 128.3 127.4 128.3 109.9 129.1 128.3 128.5 110.1 128.2 128.8 128.5 110.1 129.4 128.7 129.7 112.2 129.2 129.1 130.2 112.0 128.9 128.8 130.0 113.0 127. 128.0 122.1 129.8 111.4 128.6 128.5 122.6 128.8 113.8 127.6 129.3 122.3 120.9 118.1 128.2 114.0 125.3 128.1 126.3 113.2 123.0 122.1 123.2 110.8 120.1 116.3 115.0 112.5 120.1 108.0 118.4 110.4 117.9 105.2 115.1 106.2 Consumer goods Durable consumer goods .................. Automotive products.................. Autos......................................... Auto parts and allied g o o d s... Home goods..................................... Appliances, TV, and radios........ Appliances and A /C ............ TV and home audio............. Carpeting and furniture.............. Misc. home goods....................... Nondurable consumer goods ............ Clothing........................................ Consumer staples......................... Consumer foods and tobacco., Nonfood staples....................... Consumer chemical products Consumer paper products... Consumer fuel and lighting., Residential utilities........... 7.86 128.1 126.4 128.5 130.9 132.8 133.5 131.6 131.8 129.1 126.5 119.7 110.5 105.4 101.0 2.84 110.4 106.6 108.0 113.8 116.1 117.3 113.5 114.9 111.6 114.7 102.1 87.5 82.8 78.1 1.87 94.9 86.4 86.3 97.7 100.3 99.6 101.5 103.1 99.6 108.4 91.0 69.8 62.6 59.2 .97 140.1 145.5 149. 144.7 146.5 151.3 136.9 137.6 134.5 126.9 123.6 121.5 121.6 118.6 5.02 1.41 .92 .49 1. 2.53 138.1 132.1 149.0 100.3 153.5 135.0 137.5 140.1 140.6 142.3 142.7 141.8 141.2 139.0 133.2 129.7 123.5 118.2 114.0 139.3 139.1 133.2 120.9 115.3 103.0 93.4 131.9 135.8 135.2 137.7 141 148.2 150.0 148.6 152.6 155.3 151.7 156.2 150.2 139.5 131.9 120.8 106.3 153.3 154.5 158.2 157.4 157.2 155.3 157.1 155.4 151.8 144.7 143.8 140.7 134.2 136.3 136.0 138.3 137.4 137.3 135.8 135.3 132.2 131.4 126.2 122.5 117.1 20.67 129.1 129.1 128.7 127.6 128.5 129.0 129.4 129.1 128.7 128.9 128.8 128.1 125.6 124.4 145.7 157.7 130.9 144.6 156.2 143.2 141.7 156.5 124.1 143.5 4.32 109.0 114.5 112.0 106.2 107.0 108.9 108.6 106.4 106.0 104.5 103.1 101.8 135.4 135.6 135.1 133.9 132.9 16.34 134.4 133.0 133.1 133.2 134.2 134.3 134.9 135.1 134 8.37 125.4 125.9 125.7 123.9 124.7 124.7 125.5 124.4 124.4 125.2 126.2 125.2 125.1 124.5 7.98 2.64 1.91 3.43 2.25 143.6 158.1 125.5 143.0 152.5 140.4 159.0 119.9 137.4 148.6 140.8 160.3 119.1 138.2 149.0 143.1 159.7 119.4 143.7 151.6 144.3 157.5 124.7 145.1 153.2 144.4 156. 123.9 146.0 155.3 144.7 154.6 124.4 148.4 157. 146.5 159.0 129.5 146.2 155.4 146.1 159 128.5 145.4 155.5 145.3 155.2 127.4 147.9 159.3 145.5 158.6 126.7 146.0 156.9 Equipment Business equipment........................... Industrial equipment.................... Building and mining equip. Manufacturing equipment. Power equipment..................... Commercial, transit, farm e q ... . Commercial equipment............ Transit equipment.................... Farm equipment....................... Defense and space equipment.......... Military products......................... 12.74 129.5 127.3 127.6 127.9 130.2 130.2 131.3 128.8 132.3 132.0 131.0 127.2 122.5 119.4 6.77 1.45 3.85 1.47 128 136.0 121.8 139.9 126.6 130.3 120.6 138.7 126.8 131.3 121.1 137.3 127.6 133.5 122.1 136.6 129.6 135.0 124.1 138.4 129.0 137.4 121.9 139.0 130.3 136.2 124.9 138.4 129.6 136.5 123.1 139.6 132.0 139.8 124.4 144.2 130.9 141.2 122.5 142.8 129.3 140.1 119.4 144.5 126 137.9 116.5 142.6 5.97 3.30 2.00 .67 130.2 141.2 109.4 138.3 128.2 139.8 109.3 126.0 128.7 140. 109.4 126.1 128.2 140.4 106.7 131.2 130.9 141.5 110.2 140.2 131.5 142.7 110.4 140.6 132.5 143.5 111.4 141.4 127.6 134.0 109.3 150.5 132.8 143.3 111.8 144.1 133.2 144.1 111.2 145.4 132.9 143.1 109.8 151.9 127. 121.0 117.8 139.6 133.6 129.9 102.9 93.1 93.4 143.7 142.0 7.68 82.4 80.9 81.0 80.6 19.9 82.2 81.7 82.6 82.7 83.1 84.1 83.7 5.15 81.2 80.2 80.5 81.2 79.7 81.4 81.5 82.3 82.5 81. 83.5 81.5 123.9 138.1 114.1 135.5 83.6 81.4 120.9 136.9 111.4 129.8 81.6 79.9 Intermediate products Construction products..................... Misc. intermediate products........... . 5.93 129.6 131.3 129.6 130.8 130.8 129.6 128.2 128.0 127.4 123.5 121 .3 118.5 117.2 112.0 7.34 127.3 127.4 127.5 128.2 127.9 128.4 127.5 129.2 127.8 126.8 124.2 121.6 119.5 Materials 127.6 4.75 112.1 5.41 123.8 10.75 136.3 127.3 127.2 127.3 128.3 127.5 125 Durable goods materials .................... 20.91 Nondurable goods materials ............... 13.99 128.3 131.1 Consumer durable parts............... Equipment parts............................ Durable materials nec................... Textile, paper, and chem. m at..., Nondurable materials n.e.c.......... Fuel and power, industrial............... 128.1 129.2 129.3 123.5 116.7 110.3 105.0 109.3 110.6 112.5 114.7 114.1 117.2 117.5 117.2 115.2 104.1 91.1 83.8 80.3 125.0 124.0 122.2 118.3 116.5 110.0 122.6 121.6 120.1 122.5 122.1 120.6 125 137.6 137.5 137.5 137.2 136.2 132.3 133.9 136.6 138.3 132.7 126.9 118.7 113.4 131.9 131.9 130.9 131.3 131.1 130.4 129.3 126.8 122.1 116.5 109.0 105.4 8.58 139.4 141.7 143.1 143.9 143.3 143.6 143.6 143.2 142.2 138.1 131.1 123.1 112.0 107.7 5.41 110.6 114.3 114.7 112.7 111.4 111.9 111.3 110.0 108.9 108.9 107.8 105.9 104.2 101.5 2.89 122.6 122.5 122.6 123.2 124.7 126.3 128.0 123.5 129.0 126.4 112.7 113.1 119.2 117.8 Supplementary groups Home goods and clothing............... . Containers.......................................... 9.34 124.6 126.9 127.0 124.6 126.0 127.1 126.4 125.0 123.8 120.0 117.4 113.4 107.0 103.7 1.82 139.3 144.3 151.4 147.0 141.5 141.6 142.1 140.4 136.7 131.5 127.6 120.3 118.0 Gross value of products in market structure (In billions of 1963 dollars) Products , total ............................. Final products........................ Consumer goods................ Equipment........................... Intermediate products............ For N ote see p. A-51. 286.3 221.4 156.3 65.3 64.9 442.5 443.9 445.4 449.5 449.7 448.1 446.9 447.1 445.7 439.0 426.5 417.8 408.6 339.9 342.3 342.9 347.2 341.1 346.6 345.0 346.1 346.5 341.3 330.6 322.7 316.6 230.6 232.7 233.8 235.9 236.6 235.0 235.1 233.1 233.7 228.9 221.9 217.0 213.1 109.1 109.4 109.0 111 .2 111.2 111.6 109.9 112.8 112.7 112.4 109.0 105.7 103.4 102.6 101.9 102.5 102.2 102.0 101.2 102.1 101.0 99.4 97.4 95.8 94.8 92.0 MARCH 1975 □ IN D U S T R IA L P R O D U C T IO N : S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) Grouping Manufacturing.......... Durable................ Nondurable.......... Mining and utilities. Mining.................. Utilities................ 1967 pro por tion 1974 aver age 1974 Feb. Mar. Apr. 88.55 124.4 124.5 124.6 124 52.33 36.22 11.45 6.37 5.08 120. 129.7 127.0 109.3 149.2 119.4 131.5 126.9 111.7 146.1 120.4 130.9 127.3 112.2 146.5 120.7 130.4 127. 111.3 148.7 May June July 1975 Aug. Sept. Oct. Nov. Dec, Jan.® Feb.e 125.7 125.6 125.2 125 125.5 124.6 120.9 116.3 112.2 108.9 122.1 122.1 121.6 121.6 122.1 121.6 117.9 112.3 108.1 104.1 130.9 128.0 111.0 149 130. 128.1 110.2 150.6 130. 128.9 110.2 152.4 130 127.4 107.3 152 130.5 128.7 109.2 153.1 128 128.5 110 151.2 125 125.9 105.0 152.3 122.0 125.3 105.1 150.7 118.3 125.3 108.9 145.7 116.0 124.8 108.0 145.8 Durable manufactures Primary and fabricated metals . .. . Primary metals................................. Iron and steel, subtotal.......... Fabricated metal products........ Machinery and allied goods ............ Machinery................................... Nonelectrical machinery........ Electrical machinery.............. Transportation equipment........ Motor vehicles and parts. . . . Aerospace and misc. trans. e q ... Instruments................................. Ordnance, private and Govt.. . . ,128.4 6.61 124.5 125.0 125.3 124.0 124.6 124.7 4.23 120.2 119.4 119.6 116.4 118.0 118.5 130.6 131.6 131.3 131.9 132.5 5.94 131 12.55 127.8 127.6 128.2 127.5 128 32.44 116.3 113 17.39 9.17 8.22 9.29 4.56 4.73 2.07 3.69 129.7 133.7 125.2 96.9 113.1 81.2 143.8 86.2 127.2 128.1 126.2 93.9 109.2 79.3 142. 84.2 114. 128. 129. 126. 95.0 110.2 80.3 142. 84.9 126.9 126.5 127.2 127.6 124.4 116.5 111.8 107.3 123.2 121.9 123.0 126.0 121.0 109.8 105.0 101.4 119.9 120.7 119.1 123.9 117.7 107.9 105.5 104.3 131.1 131.5 132.0 129.6 128 124.1 119.7 113.9 115.5 117.5 117.7 117.3 117. 128.2 130.7 125.3 97.8 116.4 80.0 143.8 84.3 Lumber, clay, and glass ..................... 2 .90 136.2 135.2 136.8 136. 130.4 131.7 129.0 99.4 116.9 82.6 147 86.4 129.9 131.1 128.4 98.7 117.3 80.9 146.7 87.2 130.5 136.4 123.7 99.9 117.8 82.6 146.7 87.1 118.8 118.4 114.9 109.5 105. 132.5 137.8 126.4 100.4 118.6 82.8 144.9 87.5 131.1 137.4 124.0 102.1 123.0 81.9 142.0 87.2 128.9 135 121.7 93.7 107.1 80.9 142.3 86 124.6 132.1 116.3 83.6 86.4 80.9 138.5 86.9 119.4 127.0 111 .0 79.6 78.6 80.5 137.9 85. 101.4 114.8 121.7 107.0 76.0 74.9 77.2 132.0 85.2 4 .44 123. Furniture and miscellaneous.. . . 129.7 131.9 127.4 100.6 119.6 82.4 146.1 86.1 Lumber and products.................... Clay, glass, and stone products... Furniture and fixtures.......... Miscellaneous manufactures. 127.4 128.1 128.9 128.0 126.4 125.5 123.4 120.6 117.8 113.7 111.4 108.4 104.5 1.65 120.1 127.1 126.1 126.8 126. 125.6 121.6 121.5 116.6 109.3 105.2 101.0 95.6 2.79 125.9 127.6 129.3 130.3 128.7 126.9 127.7 124.6 123.0 122.9 118.8 117 114.0 1.38 127.0 125.4 126. 1.52 144.6 144.2 145. 138.9 138.5 139.7 140.1 138.8 136.7 129.0 128 121.5 120.2 128. 129.7 131.1 131.6 130.5 129.4 125.5 120.5 120.4 114.3 .......... 144.1 147.3 145.3 147.1 148.8 147.5 146.9 136.9 135.7 128.0 .......... Nondurable manufactures Textiles, apparel, and leather. 6.90 108.5 115.3 112.4 109.3 109.8 108.5 108.1 Paper and printing ............ 7.92 121.0 122.2 122.5 121.2 121.3 122.3 122.4 121.0 122.7 120.8 115.7 112.4 108.6 105.8 Textile mill products.......... Apparel products................ Leather and products......... Paper and products Printing and publishing. Chemicals, petroleum, and rubber . . . . Chemicals and products.................. Petroleum products......................... Rubber and plastics products......... Foods and tobacco . . , Foods................... . Tobacco products. 107.4 106.5 105.1 101.9 96.4 2.69 123.0 127.6 125.0 123.4 124.0 125.1 125.3 124.3 121.9 119.1 112.8 105.6 3.33 105.0 113.6 110.0 105. 105.0 102.1 102.7 102.5 102.5 102.8 100.1 96.0 .88 77.6 83.7 83.0 79.5 83.9 81.6 75.7 73.4 74.2 70.6 74.7 69.7 89.9 96.2 8 7 .7 64.4 3.18 133.9 137.6 140.2 135.4 135.1 136.7 136.1 132.2 135.3 133.9 124.3 116.3 108.5 4.74 112.3 111.9 110.7 111.7 111.9 112.7 113.4 113.4 114.4 111.9 110.0 109 108.5 106.6 11.92 151.7 151.2 151.3 153.5 153.0 153.7 153.9 154.4 154.7 152.4 146.5 141 137.7 133.9 7.86 154.3 155.3 155.5 156.2 156.2 156.9 155.8 156.7 158.3 155.9 148.3 143.4 139.4 137.1 1.80 124.1 116.9 117.3 126.9 126.1 126.2 127.9 125.8 121.9 125.4 127.0 126.2 126.3 123.2 2.26 164.6 163.5 164.2 165.5 163.7 164.5 167.2 169.0 168.6 161.8 155.7 149.2 141.0 124.3 123.7 123. 123.6 123.0 122.4 124 9 .48 124.7 126.2 125.3 124.3 126.5 125.3 124. 127.1 126.6 126.3 125.7 124. 125.4 125.6 125.1 124.5 8.81 126.1 127.2 126.5 125.9 127. 96.2 .67 107.0 112.1 110 , 104.6 109.4 102.9 101.5 104.2 106.0 110.3 103. Mining M etal, stone, and earth minerals . , Metal mining............................ Stone and earth minerals........ Coal, oil, and g a s ............ Coal............................. Oil and gas extraction. 1.26 117.1 119.9 119.7 117.5 117.9 112.4 113.5 109.9 115.4 121.3 120.7 117.9 117.8 115.2 .51 129.0 132.2 132.9 127.4 128.1 121.1 120.3 110.0 130.5 141.4 136.8 134.7 131.9 .75 109.0 111.6 110.7 110.7 111.0 106.4 108.8 109.9 105.0 107.5 109.8 106.4 108.2 5.11 107.3 109.6 110.2 109.8 109.2 109.7 109.4 106.7 107.7 107.8 101.2 102.0 106.7 106.3 .69 104.8 112.7 114.7 110.3 112.4 118.3 115.6 99.4 112.1 110.3 67.6 81.7 111.5 113.0 4.42 107.7 109.1 109.5 109.7 108.8 108.4 108.4 107.9 107.1 107.4 106.4 105.2 105.9 105.2 Utilities 3.91 158.6 154.6 155.1 158.3 159.0 160.3 162.7 162.8 162.4 161.2 162.9 160.7 1.17 117.9 Electric. G a s ...., N o t e . —Data for the complete year of 1972 are available in a pamphlet Industrial Production Indexes 1972 from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Published groupings include series and subtotals not shown separately. Figures for individual series and subtotals are published in the monthly Business Indexes release. A 52 BUSINESS ACTIVITY; CONSTRUCTION □ MARCH 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Market Period Products Total Manu facturing 2 In dustry Final Total Con Total sumer Equip goods ment Ca pacity Con utiliza struc tion tion in mfg. con (1967 Manu output tracts Inter Mate factur = 100) mediate rials ing Prices 4 Total retail sales 3 Pay rolls 56.6 59.7 61.1 58.6 64.4 54.9 58.2 59.9 57.1 62.7 59.5 61.7 63.2 62.6 68.7 48.9 53.7 55.9 50.0 54.9 62.6 65.3 65.3 63.9 70.5 61.5 63.1 63.1 56.8 65.5 58.2 60.5 61.2 56.9 64.1 90.0 66.2 66.2 66.7 72.2 76.5 81.7 66.9 72.1 76.2 81.2 64.8 65.3 70.8 74.9 79.6 71.3 72.8 77.7 82.0 71.0 72.4 76.9 81.1 87.3 66.4 66.4 72.4 77.0 82.6 65.4 65.6 71.4 75.8 81.2 80.1 77.6 81.4 83.0 85.5 86.1 86.8 56.4 55.6 61.9 65.6 70.1 89.4 86.1 88.6 86.8 93.0 98.6 78.7 93.0 89.1 98.3 89.0 93.2 91.9 94.8 87.9 100.0 87.7 113.2 86.5 123.7 92.3 97.1 93.9 99.9 97.8 100.0 103.2 106.9 100.0 101.4 103.2 100.0 108.3 116.6 109 114 78.3 75.0 78.6 83.0 123.1 145.4 165.3 181.3 168.6 107.7 108.1 111.9 116.7 118.9 98.1 94.2 97.6 103.1 142 102.1 114.1 116.7 131.5 148.9 156.6 155.0 187.0 181.0 167.0 188.0 166.0 177.0 170.0 187.0 148.0 154.0 176.0 118.3 118.5 118.6 118.8 119.0 119.1 119.2 119.4 119.7 119.8 119.1 118.0 '154.5 '152.5 '153.1 '150.4 '156.2 '157.9 '159.5 102.6 '161.5 102.5 '162.0 101.7 '162.1 99.4 '157.0 96.3 '152.6 135.0 117.2 116.2 1955..................... 1956..................... 1957..................... 1958..................... 1959..................... 58.5 61.1 61.9 57.9 64.8 I960..................... 1961..................... 1962..................... 1963..................... 1964..................... 89.2 97.9 96.8 93.0 99.2 1965..................... 1966..................... 1967..................... 1968..................... 1969..................... 100.0 100.0 100.0 100.0 100.0 1970..................... 1971..................... 1972..................... 1973..................... 1974..................... 106.6 106.8 115.2 125.6 124.8 106.0 106.4 113.8 123.4 123.1 1974—Jan........... Feb........... Mar.......... Apr........... May......... June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... 125,4 124.6 124.7 124.9 125.7 125.8 125.5 125.2 125.6 124.8 121.7 117.7 122.9 121.2 129.2 122.4 120.6 128.3 122.6 121.0 128.5 122.7 120.8 128.5 123.8 122.4 129.7 124.0 122.6 130.2 124.0 122.8 130.0 123.5 122.1 129.8 123.6 122.6 128.8 122.9 122.3 128.2 121 .4 120.9 126.3 118.5 118.1 123.2 120.1 1975—Jan........... 113.7 115.7 115.0 120.1 108.0 118.4 110.3 113.0 112.5 117.9 105.2 115.1 Feb........... Nonagri cul tural em Em ploy ment— ploy Total i ment 88.1 96.1 100.0 105.7 105.8 105.8 106.6 104.7 105.7 110.7 109.7 109.0 111.1 106.1 112.0 104.5 104.7 111.9 121.3 121.7 91.0 99.8 100.0 105.7 112.4 100.0 105.7 110.5 110.3 96.3 111.7 115.7 89.4 112.6 123.6 95.5 121.1 131.7 106.7 131.1 128.8 111.8 128.3 107.7 107.4 117.4 129.3 127.4 105.2 105.2 114.0 125.2 124.4 109.8 129.2 109.9 129.1 110.1 128.2 110.1 129.4 112.2 129.2 112.0 128.9 113.0 127.8 111.4 128.6 113.8 127.6 114.0 125.3 113.2 123.0 129.7 128.3 128.8 128.7 129.1 128.8 128.0 128.5 129.3 128.1 116.3 125.3 124.5 124.6 124.8 125.7 125.6 125.2 125.2 125.5 124.6 120.9 116.3 110.4 106.2 108.9 110.8 122.1 i I j \ 80.5 80.1 J \ J I 79.4 75.9 112.2 1 Employees only: excludes personnel in the Armed Forces. 2 Production workers only. Revised back to 1968. 3 F.R. index based on Census Bureau figures. 4 Prices are not seasonally adjusted. Latest figure is final. N o t e . — A ll series: Data are seasonally adjusted unless otherwise noted. Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept, of Commerce. 76.9 79.6 80.3 78.0 81.0 92.9 93.9 92.2 83.9 82.4 82.1 84.4 88.2 84.5 75.1 81.4 88.0 88.1 84.5 87.3 87.8 89.3 Whole sale com modity 9 0 .7 93' 3 61.1 64.6 65.4 60.3 67.8 59 61 64 64 69 80.2 81.4 84.3 87! 3 86.6 94^6 94^8 68.8 68.0 70 70 75 79 83 88.7 89.6 90.6 91.7 92.9 94.9 94.5 94 8 94.*5 94.7 73.3 76.0 80.1 88.1 91 97 94.5 97.2 100 100.0 87.8 96.6 99.8 100.0 104.2 109.8 102.5 106.5 116.3 125.3 133.1 147.7 110.4 113.9 119.8 134.7 160.1 164 165 168 169 172 170 177 180 176 175 170 171 139.7 141.5 143.1 143.9 145.5 146.9 148.0 149.9 151.7 153.0 154.3 155.4 146.6 149.5 151.4 152.7 155.0 155.7 161.7 167.4 167.2 170.2 171.9 171.5 '175 176 156.1 171.8 171.3 120 122 104.0 103.2 102.9 103.0 103.0 103.2 103.0 93.5 90.7 Con sumer 148.8 142.6 121.2 Construction contracts; McGraw-Hill Informations Systems Company F.W. Dodge Division, monthly index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) Type of ownership and type of construction 1973' 1974 1974 Ja n .' Feb. Mar. Apr. May June 1975 July Aug. Sept. Oct. Nov. Dec. Jan. rotal construction contracts 1 ........ 99,304 93,076 5,847 6,610 7,911 8,929 10,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 By type of ownership: Public........................................ Private 1.................................... 26,563 32,209 2,070 2,212 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 72,741 60,867 3,776 4,398 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 By type of construction: Residential building 1 .............. Nonresidential building........... Nonbuilding............................. 45,696 34,174 2,218 2,678 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 31,534 33,859 2,274 2,260 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 22,074 25,042 1,355 1,672 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 Private housing units authorized. . . (In thousands, S.A., A.R.) 1,829 1,053 1,282 1,325 1,410 1,296 1,120 1,106 1,017 i Because of improved procedures for collecting data for 1-family homes, some totals are not strictly comparable with those prior to 1968. To im prove comparability, earlier levels may be raised by approximately 3 per cent for total and private construction, in each case, and by 8 per cent for residential building. 900 823 782 730 822 661 N o r E . —Dollar value of construction contracts as reported by the McGraw-Hill Informations Systems Company, F.W. Dodge Division. Totals of monthly data exceed annual totals because adjustments— negative—are made in accumulated monthly data after original figures have been published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. MARCH 1975 □ CONSTRUCTION A 53 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Public Private Nonresidential Period Total Total Buildings Resi dential Mili tary Total Total Indus trial Com mercial Other build ings 1 Other High way Conser vation and Other 2 develop ment 51,350 51,995 51,967 59,021 65.404 27,934 25,715 25,568 30,565 33,200 23,416 26,280 26,399 28,456 32,204 5,118 6,679 6,131 6,021 6,783 6,739 6,879 6,982 7,761 9,401 4,735 5,037 4,993 4,382 4,971 6,824 7,685 8,293 10,292 11,049 22,062 24,007 25,536 27,605 27,964 830 727 695 808 879 7,550 8,405 8,591 9,321 9,250 2,019 2,194 2,124 1,973 1,783 11,663 12,681 14,126 15,503 16,052 94,167 66,071 109,950 80,079 124,077 93,893 135,456 102,894 134,506 96,124 31,864 43,267 54,288 57,623 54,740 34,207 36,812 39,605 45,271 41,384 6,538 5,423 4.676 6,243 7,745 9,754 11,619 13,462 15,453 16,029 5,125 5,437 5,898 5,888 5,951 12,790 14,333 15,569 17,687 11.659 28,096 29,871 30,184 32,562 38,382 718 901 1,087 1,170 1,188 9,981 10,658 10,429 10,559 1,908 2,095 2,172 2,313 15,489 16,217 16,496 18,520 1974—Feb.. Mar., Apr.. May. June. July. Aug.. Sept.. Oct.r Nov. Dec.. 136,282 135,069 136,399 138,163 136,889 137,935 134,503 132,891 133,043 129,724 131,560 98,770 98,631 97,445 97,889 98.404 97,980 96,303 94,591 94,177 92,123 89,987 48,873 48,643 '48,164 47,971 48,269 48,938 48,284 45,858 7,869 7,500 6,920 7,606 8,027 7,158 7,616 7.677 8,294 8,670 8,774 16,650 16,652 16,296 16,408 16,425 15,953 15,053 15,668 16,300 16,037 15,372 6,143 6,336 6,264 5,890 6,034 5,915 5,691 5,776 5,799 5,854 5,781 19,235 19,500 19,801 20,014 19,649 20,016 19.659 19.612 20,473 20.612 21,036 37,512 36,438 38.954 40,274 38,485 39.955 38,200 38,300 38,866 37,601 41,573 1,361 1,401 1,505 1,181 1,169 1,131 978 1,167 1,065 12,465 10,985 12,209 12,322 11,632 2,510 2,463 2,665 2,692 3,306 21,176 21,589 22,575 24,079 22,378 40,950 39,024 49,897 49,988 49,281 49,918 50,135 49,042 48,019 48,733 50,866 51,173 50,963 1975—Jan.* 128,087 88,429 37,154 51,275 8,486 15,390 5,896 21,503 39,658 1965 1966 1967 1968 1969 197 197 197 197 197 73,412 76,002 77,503 86,626 93,728 0 1 2 3 4 43,311 N o t e . —Census Bureau data; monthly series at seasonally adjusted annual rates. * Includes religious, educational, hospital, institutional, and other build ings. 2 Sewer and water, formerly shown separately, now included in “Other.” PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions New 1-family homes sold and for sale 1 Under construction (end of period) Units Period Total 1family 2-ormore family Total 1family 2-ormore family Total 1family Mobile home 2-orship more ments family Sold 1965........................................ 1966........................................ 1967........................................ 1968........................................ 1969........................................ 1,473 1,165 1,292 1,508 1,467 964 779 844 899 811 509 386 448 608 656 1,320 1,399 859 808 461 592 885 350 1970........................................ 1971........................................ 1972........................................ 1973........................................ 1974........................................ 1,434 2,052 2,357 2,045 1,338 813 1,151 1,309 1,132 888 621 901 1,048 913 450 1,418 1,706 1,972 2,014 1,689 802 1,014 1,143 1,174 930 617 692 828 840 759 922 1,254 1,586 1,599 1,194 381 505 640 583 519 1974—Jan.' ........................... Feb.' ........................... M ar.r .......................... A pr.r........................... M ayr........................... Juner........................... Julyr ........................... Aug.r.......................... Sept.r .......................... Oct. r ........................... Nov.r .......................... Dec.............................. 1,437 1,881 1,511 1,580 1,467 1,533 1,314 1,156 1,157 1,106 1,017 874 803 1,046 969 975 925 1,000 920 826 845 792 802 676 634 835 542 605 542 533 394 330 312 314 215 198 1,916 1,891 1,885 1,695 1,677 1,851 1,674 1,505 1,505 1,633 1,648 1,582 1,026 1,018 973 883 882 1,092 935 899 882 922 874 836 890 873 912 812 795 759 739 607 624 712 761 746 1,608 1,611 1,567 1,545 1,512 1,480 1,443 1,406 1,372 1,322 1,259 1,230 599 601 597 600 594 581 578 570 565 553 544 546 1975—Jan............................... 987 743 244 1 Merchant builders only. N o t e . —All series except prices, seasonally adjusted. Annual rates for starts, completions, mobile home shipments, and sales. Census data except Median prices (in thousands of dollars) of units For sale (end of per iod) Sold For sale 535 217 217 240 318 413 575 461 487 490 448 228 196 190 218 228 20.0 21.4 22.7 24.7 25.6 21.3 22.8 23.6 24.6 27.0 541 749 947 1,016 676 401 497 576 567 371 485 656 718 620 500 227 294 416 456 408 23.4 25.2 27.6 32.5 35.9 26.2 25.9 28.3 32.9 36.2 1,009 1,010 970 945 918 899 865 836 807 769 715 684 469 449 475 435 451 441 380 370 316 248 218 216 474 516 585 570 599 532 511 457 500 412 423 364 450 459 453 449 441 435 431 433 414 409 403 401 34.2 34.9 36.0 35.7 35.7 35.1 36.8 35.7 36.2 37.2 37.2 37.5 33.4 33.5 34.0 34.3 34.7 35.0 35.3 35.5 35.7 35.9 36.0 36.2 215 for mobile homes, which are private, domestic shipments as reported by the Mobile Home Manufacturers* Assn. and seasonally adjusted by Census Bureau. Data for units under construction seasonally adjusted by Federal Reserve. A 54 EMPLOYMENT □ MARCH 1975 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total noninstitutional population (N.S.A.) Period Not in labor force (N.S.A.) Total labor force (S.A.) Unem ployed Unemploy ment rate2 (per cent; S.A.) Employed1 Total Total In nonagricultural industries In agriculture 1969........................... 1970........................... 1971........................... 1972........................... 1973........................... 1974........................... 137,841 140,182 142,596 145,775 148,263 150,827 53,602 54,280 55,666 56,785 57,222 57,587 84,240 85,903 86,929 88,991 91,040 93,240 80,734 82,715 84,113 86,542 88,714 91,011 77,902 78,627 79,120 81,702 84,409 85,936 74,296 75,165 75,732 78,230 80,957 82,443 3,606 3,462 3,387 3,472 3,452 3,492 2,832 4,088 4,993 4,840 4,304 5,076 3.5 4.9 5.9 5.6 4.9 5.6 1974—Feb................. Mar................ Apr................ May............... June............... July................ Aug................ Sept................ Oct................. Nov................ Dec................ 149,857 150,066 150,283 150,507 150,710 150,922 151,135 151,367 151,593 151,812 152,020 58,165 58,183 58,547 58,349 55,952 55,426 56,456 57,706 57,489 57,991 58,482 92,809 92,632 92,567 92,982 93,069 93,503 93,419 93,922 94,058 93,921 94,015 90,551 90,381 90,324 90,753 90,857 91,283 91,199 91,705 91,844 91,708 91,803 85,861 85,779 85,787 86,062 86,088 86,403 86,274 86,402 86,304 85,689 85,202 82,050 82,126 82,272 82,565 82,755 82,970 82,823 82,913 82,864 82,314 81,863 3,811 3,653 3,515 3,497 3,333 3,433 3,451 3,489 3,440 3,375 3,339 4,690 4,602 4,537 4,691 4,769 4,880 4,925 5,303 5,540 6,019 6,601 5.2 5.1 5.0 5.2 5.2 5.3 5.4 5.8 6.0 6.6 7.2 1975—Jan................. Feb................. 152,230 152,445 58,888 59,333 94,284 93,709 92,091 91,511 84,562 84,027 81,179 80,701 3,383 3,326 7,529 7,484 8.2 8.2 1 Includes self-employed, unpaid family, and domestic service workers. 2 Per cent of civilian labor force. of Labor Statistics. Information relating to persons 16 years of age and over is obtained on a sample basis. Monthly data relate N o t e . — Bureau to the calendar week that contains the 12th day; annual data are averages of monthly figures. Description of changes in series beginning 1967 is available from Bureau of Labor Statistics. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract construc tion Period Total Manufac turing 1969......................................................... 70,442 70,920 71,216 73,711 76,833 78,334 20,167 19,349 18,572 19,090 20,054 20,016 619 623 603 622 638 672 3,525 3,536 3,639 3,831 4,028 3,985 Oct................................................ Nov............................................... Dec............................................... 78,053 78,089 78,226 78,357 78,421 78,479 78,661 78,844 78,865 78,404 77,690 20,155 20,116 20,147 20,151 20,184 20,169 20,112 20,112 19.982 19,633 19,146 661 662 665 668 669 675 676 682 692 693 662 1975—Jan................................................ Feb.®............................................ 77,166 76,558 18,709 18,282 1974— Feb............................................... Mar.............................................. Apr............................................... May.............................................. June.............................................. July.............................................. Aug............................................... Sept.............................................. Oct................................................ Nov............................................... Dec............................................... 77,011 77,362 77,994 78,545 79,287 78,322 78,561 79,097 79,429 79,125 78,441 1975—Jan................................................ Feb.®............................................ 76,126 75,601 1971......................................................... 1973......................................................... 1974......................................................... Transporta tion and public utilities Trade Finance Service Govern ment 4,435 4,504 4,457 4,517 4,646 4,699 14,704 15,040 15,352 15,975 16,665 17,011 3,562 3,687 3,802 3,943 4,075 4,173 11,228 11,621 11,903 12,392 12,986 13,506 12,202 12,561 12,887 13,340 13,742 14,285 4,127 4,102 4,087 4,066 3,994 3,920 3,965 3,939 3,911 3,861 3,798 4,717 4,708 4,704 4,701 4,698 4,693 4,701 4,679 4,699 4,697 4,668 16,871 16,914 16,945 16,994 17,031 17,107 17,140 17,166 17,160 17,048 16,912 4,142 4,145 4,154 4,161 4,156 4,157 4,168 4,176 4,185 4,183 4,182 13,313 13,339 13,367 13,429 13,488 13,516 13,573 13,647 13,705 13,721 13,734 14,067 14,103 14,157 14,187 14,201 14,242 14,326 14,443 14,531 14,568 14,588 702 710 3,781 3,587 4,607 4,583 16,838 16,813 4,174 4,162 13,733 13,753 14,622 14,668 19,971 19,962 20,011 20,063 20,345 20,066 20,288 20,350 20,142 19,763 19,175 646 648 659 669 684 688 690 688 693 693 657 3,702 3,786 3,919 4,058 4,190 4,187 4,286 4,191 4,150 3,981 3,722 4,651 4,670 4,671 4,701 4,759 4,740 4,734 4,721 4,718 4,702 4,663 16,513 16,584 16,851 16,964 17,108 17,064 17,058 17,153 17,225 17,342 17,591 4,105 4,120 4,137 4,161 4,202 4,219 4,222 4,180 4,172 4,309 4,161 13,153 13,246 13,380 13,536 13,677 13,665 13,668 13,647 13,719 13,707 13,665 14,270 14,346 14,366 14,393 14,322 13,693 13,615 14,167 14,610 14,771 14,807 18,529 18,117 691 694 3,365 3,221 4,552 4,519 16,662 16,456 4,132 4,125 13,500 13,588 14,695 14,881 Mining SEASONALLY ADJUSTED 1974—Feb............................................... Mar.............................................. Apr............................................... May.............................................. June.............................................. July.............................................. Aug............................................... NOT SEASONALLY ADJUSTED N o t e . — Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period that includes the 12th of the month. Proprietors, self-employed persons, domestic servants, unpaid family workers, and members of Armed Forces are excluded. Beginning with 1968, series has been adjusted to Mar. 1973 bench mark. M ARCH 1975 □ PRICES A 55 CONSUMER PRICES (1967 = 100) Housing All items Food 51.3 38.8 44.1 53.9 88.7 94.5 48.3 30.6 38.4 50.7 88.0 94.4 53.7 59.1 90.2 94.9 1966.......................... 97.2 1967.......................... 100.0 1968.......................... 104.2 1969.......................... 109.8 99.1 100.0 103.6 108.9 97.2 100.0 104.2 110.8 1970.......................... 116.3 1971......................... 121.3 1972.......................... 125.3 1973......................... 133.1 1974......................... 147.7 114.9 118.4 123.5 141.4 161.7 118.9 124.3 129.2 135.0 150.6 110.1 115.2 119.2 M24.3 130.2 1974—Jan................ Feb................ Mar............... Apr................ M ay.............. June.............. July............... Aug............... Sept............... Oct................ Nov....... .. Dec............... 139.7 141.5 143.1 143.9 145.5 146.9 148.0 149.9 151.7 153.0 154.3 155.4 153.7 157.6 159.1 158.6 159.7 160.3 160.5 162.8 165.0 166.1 167.8 169.7 142.2 143.4 144.9 146.0 147.6 149.2 150.9 152.8 154.9 156.7 158.3 159.9 127.3 128.0 128.4 128.8 129.3 129.8 130.3 130.9 131.4 132.2 132.8 133.5 1975—Jan................ 156.1 170.9 161.2 Period 1929.......................... 1933.......................... 1941.......................... 1945.......................... 1960.......................... 1965.......................... Total Health and recreation Homeownership Fuel oil and coal Gas and elec tricity 86.3 92.7 40.5 48.0 89.2 94.6 81.4 79.6 98.6 99.4 98.2 96.3 100.0 100.0 102.4 105.7 105.7 116.0 97.0 100.0 103.1 105.6 128.5 133.7 140.1 146.7 163.2 Rent 76.0 54.1 57.2 58.8 91.7 96.9 134.0 Fur Apparel Trans and nish porta ings upkeep tion and opera tion Total Med ical care Per sonal care Read Other ing goods and and recrea serv tion ices 93.8 95.3 48.5 36.9 44.8 61.5 89.6 93.7 44.2 47.8 89.6 95.9 85.1 93.4 37.0 42.1 79.1 89.5 41.2 55.1 90.1 95.2 47.7 62.4 87.3 95.9 49.2 56.9 87.8 94.2 99.6 100.0 100.9 102.8 97.0 100.0 104.4 109.0 96.1 100.0 105.4 111.5 97.2 100.0 103.2 107.2 96.1 100.0 105.0 110.3 93.4 100.0 106.1 113.4 97.1 100.0 104.2 109.3 97.5 100.0 104.7 108.7 97.2 100.0 104.6 109.1 110.1 117.5 118.5 136.0 214.6 107.3 114.7 120.5 126.4 145.8 113.4 118.1 121.0 124.9 140.5 116.1 119.8 122.3 126.8 136.2 112.7 118.6 119.9 123.8 137.7 116.2 122.2 126.1 130.2 140.3 120.6 128.4 132.5 137.7 150.5 113.2 116.8 119.8 125.2 137.3 113.4 119.3 122.8 125.9 133.8 116.0 120.9 125.5 129.0 137.2 154.8 155.8 157.2 158.2 159.4 161.2 163.2 165.4 167.9 170.1 171.7 174.0 194.6 202.0 201.5 206.5 211.0 214.2 218.5 220.9 222.7 225.5 229.2 228.8 134.3 137.3 140.0 141.9 143.9 144.5 146.2 148.5 150.2 151.5 154.0 156.7 129.0 130.1 132.6 134.0 137.0 139.2 141.4 143.9 146.6 149.0 151.0 152.3 128.8 130.4 132.2 133.6 135.0 135.7 135.3 138.1 139.9 141.1 142.4 141.9 128.1 129.3 132.0 133.7 136.3 138.8 140.6 141.3 142.2 142.9 143.4 143.5 133.7 134.5 135.4 136.3 137.7 139.4 141.0 142.6 144.0 145.2 146.3 147.5 142.2 143.4 144.8 145.6 147.2 149.4 151.4 153.7 155.2 156.3 157.5 159.0 129.8 130.8 131.8 133.1 134.9 136.5 137.8 139.3 141.2 143.0 144.2 145.3 128.3 128.9 129.5 130.4 132.0 133.5 134.6 135.2 137.0 137.8 138.8 139.8 131.8 132.3 132.8 133.6 134.4 135.8 137.7 139.4 140.4 141.4 142.7 143.9 175.6 228.9 160.2 153.2 139.4 143.2 148.9 161.0 146.5 141.0 144.8 N o t e . —Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Period 1960............................. 1965............................. All Farm Pro com prod cessed modi ucts foods and ties feeds Total 94.9 96.6 97.2 98.7 89.5 95.5 95.3 96.4 Ma Non Trans Tex Hides, Fuel, Chem Rub Lum Paper, Met chin Furni me porta Mis ery als, tiles, etc. icals, ber, ber, ture, tallic tion cella etc. and etc. etc. etc. etc. equip etc. etc. min equip neous etc. erals ment! ment 99.5 99.8 90.8 94.3 96.1 101.8 103.1 95.5 99.0 95.9 95.3 95.9 98.1 96.2 92.4 96.4 92.0 93.9 99.0 96.9 97.2 97.5 93.0 95.9 97.7 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 100.0 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 102.2 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970............................. 1971............................. 1972............................. 1973............................. 1974............................. 110.4 113.9 119.1 134.7 160.1 111.0 112.9 125.0 176.3 187.7 112.0 114.3 120.8 148.1 170.9 110.0 114.0 117.9 125.9 153.8 107.2 108.6 113.6 123.8 139.1 110.1 114.0 131.3 143.1 145.1 105.9 114.2 118.6 134.3 208.3 102.2 104.2 104.2 110.0 146.8 108.6 109.2 109.3 112.4 136.2 113.7 127.0 144.3 177.2 183.6 108.2 110.1 113.4 122.1 151.7 116.7 119.0 123.5 132.8 171.9 111.4 115.5 117.9 121.7 139.4 107.5 109.9 111.4 115.2 127.9 113.3 122.4 126.1 130.2 153.2 104.5 110.3 113.8 115.1 125.5 109.9 112.8 114.6 119.7 133.1 1974— Feb................... Mar................... Apr................... M ay................. June................. July................... Aug................... Sept................... Oct.................... Nov................... Dec................... 149.5 151.4 152.7 155.0 155.7 161.7 167.4 167.2 170.2 171.9 171.5 205.6 197.0 186.2 180.8 168.6 180.8 189.2 182.7 187.5 187.8 183.7 164.7 163.0 159.1 158.9 157.4 167.6 179.7 176.8 183.5 189.7 188.2 138.2 142.4 146.6 150.5 153.6 157.8 161.6 162.9 164.8 165.8 166.1 135.2 136.1 137.5 139.1 141.7 142.1 142.3 142.1 140.5 139.8 138.4 143.4 143.4 145.4 146.3 146.0 146.6 146.2 148.1 145.2 144.5 143.2 177.4 189.0 197.9 204.3 210.5 221.7 226.0 225.0 228.5 227.4 229.0 120.2 127.3 132.3 137.0 142.8 148.4 158.5 161.7 168.5 172.9 174.0 119.8 123.8 129.4 133.7 135.6 139.5 143.4 145.6 147.5 148.5 149.4 184.1 191.3 200.2 198.0 192.2 188.6 183.7 180.4 169.4 165.8 165.4 132.9 137.2 114.4 146.6 147.5 153.3 162.9 164.2 166.0 166.9 167.2 148.0 154.7 161.2 168.7 174.0 180.3 185.6 187.1 186.9 186.7 184.6 127.0 129.0 130.8 134.1 137.2 140.3 144.3 146.8 150.0 152.7 154.0 120.2 121.3 122.9 124.5 126.1 128.2 129.8 132.8 135.5 136.9 137.7 142.1 144.2 146.7 150.7 152.3 156.4 157.6 159.8 162.2 163.4 164.3 118.9 119.1 119.4 121.4 122.8 125.1 126.7 127.7 134.2 135.1 137.0 124.6 125.8 128.2 133.2 134.3 135.2 135.4 136.3 137.1 140.7 142.4 1975—Jan.................... 171.8 179.7 186.4 167.5 137.5 142.1 232.2 176.0 149.6 164.7 169.8 185.5 156.6 138.8 168.5 137.1 145.5 Feb................... 171.3 174.6 182.6 168.4 136.5 141.7 232.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 i Dec. 1968=100. A 56 NATIONAL PRODUCT AND INCOME □ MARCH 1975 GROSS NATIONAL PRODUCT (In billions of dollars) Item 1929 1933 1941 1950 1970 1971 1972 1973 1974? 1973 IV 103.1 I II III Iy? 55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.3 1,344.0 1,358.8 1,383.8 1,416.3 1,430.2 57.2 120.1 278.0 972.6 1,048.6 1,149.5 1,279.6 1,883.0 1,815.1 1.841.9 1,870.8 1,407.6 1,412.4 Final purchases.................................................. 101.4 Personal consumption expenditures................. Durable goods.............................................. Nondurable goods........................................ Services......................................................... 77.2 9.2 37.7 30.3 Gross private domestic investment................... Fixed investment........................................... Nonresidential............................................ Structures.............................................. Producers’ durable equipment............. Residential structures............................... Nonfarm................................................ Change in business inventories................... 16.2 1.4 14.5 10.6 5 .0 3 .0 2 .4 Net exports of goods and services................... Exports.......................................................... Imports.......................................................... 1.1 7.0 5.9 Government purchases of goods and services.. Federal.......................................................... National defense....................................... Other.......................................................... State and local...................................... . . . 8.5 Gross national product in constant (1958) dollars............................................................ 1974 45.8 3.5 22.3 20.1 .9 1.5 5.6 .6 4.0 3.8 .5 1.7 - 1 .6 1.8 - 1 . 4 80.6 191.0 617.6 667.1 9.6 30.5 91.3 103.9 42.9 98.1 263.8 278.4 28.1 62.4 262.6 284.8 17.9 13.4 9 .5 2.9 6.6 3.9 3.7 4.5 4.0 .4 2.4 2.0 1.3 5.9 4.6 8.0 24.8 1 .3 2 .0 16.9 7.2 6.0 13.8 3.1 7.9 729.0 118.4 299.7 310.9 805.2 130.3 338.0 336.9 876.7 127.5 380.2 369.0 823.9 124.3 352.1 347.4 840.6 123.9 364.4 352.4 869.1 129.5 375.8 363.8 901.3 136.1 389.0 376.2 895.8 120.7 391.7 383.5 54.1 136.3 153.7 179.3 209.4 209.4 224.5 210.5 211.8 205.8 209.4 47.3 131.7 147.4 170.8 194.0 195.2 195.5 193.6 198.3 197.1 191.6 27.9 100.6 104.6 116.8 136.8 149.2 141.9 145.2 149.4 150.9 151.2 9.2 36.1 37.9 41.1 47.0 52.0 49.3 51.3 52.2 51.0 53.7 18.7 64.4 66.6 75.7 89.8 9 7 . 1 92.6 93.9 97.2 99.9 97.5 19.4 18.6 6.8 6.0 31.2 30.7 4.5 4.3 42.8 42.3 6.3 4.9 1.8 13.8 12.0 3.6 62.9 59.3 - . 2 - 6 .0 2.0 3.9 9.3 11.3 - 1 .5 - 3 .1 1.2 65.4 72.4 100.4 139.9 113.6 131.2 138.5 143.6 146.4 65.6 78.4 96.4 138.0 104.3 119.9 140.0 146.7 145.3 54.0 53.4 8.5 7.8 57.2 56.7 15.4 11.4 46.0 45.2 14.2 11.9 53.6 53.0 28.9 24.0 48.4 47.8 16.9 13.1 48.8 48.0 13.5 10.4 46.2 45.4 8.7 6.6 40.4 39.7 17.8 17.5 37.9 219.5 234.2 255.7 276.4 309.2 286.4 296.3 304.4 312.3 323.8 18.4 96.2 97.6 104.9 106.6 116.9 108.4 111.5 114.3 117.2 124.5 14.1 74.6 71.2 74.8 74.4 78.7 75.3 75.8 16.6 78.4 84.0 4.3 21.6 26.5 30.1 32.2 38.2 33.1 35.7 37.7 38.8 40.6 19.5 123.3 136.6 150.8 169.8 192.3 177.9 184.8 190.1 195.1 199.3 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.1 845.7 830.5 827.1 823.1 803.8 N o t e . —Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Survey o f Current Business (generally the July issue) and the Aug. 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) Item 1929 1933 1941 1950 1970 1971 1972 1973 1974? 1973 IV 1974 I II III IV? Wages and salaries ....................................... Private........................................................ 86.8 40.3 104.2 241.1 800.5 857.7 946.5 1,065.6 1,142.8 1,106.3 1,118.8 1,130.2 1,155.5 51.1 National income................................................ 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 814.8 828.8 848.3 868.2 877.7 50.4 29.0 23.9 .3 62.1 146.8 542.0 573.6 626.8 691.6 750.7 717.0 727.6 744.6 761.5 769.2 51.9 124.4 426.9 449.5 491.4 545.1 592.4 565.8 573.8 588.3 602.5 605.1 19.6 19.4 20.5 20.6 21.2 21.0 21.0 20.9 20.8 22.0 1.9 5.0 8.3 17.4 95.5 104.7 114.8 126.0 137.1 130.2 132.8 135.4 138.2 142.1 Government civilian................................. 45.5 .3 4.6 Supplements to wages and salaries ............... .7 .5 2 .7 7.8 61.9 69.5 80.3 94.4 105.1 97.7 101.2 103.7 106.7 108.6 .1 .6 .1 .4 2.0 .7 4 .0 3.8 29.7 32.2 33.1 36.4 38.6 41.7 48.4 46.0 53.6 50.1 47.6 48.9 52.3 53.2 50.5 54.5 52.3 54.6 54.0 Proprietors’ income.......................................... Business and professional............................ 15.1 9.0 6.2 5.9 3.3 2.6 17.5 11.1 6.4 37.5 24.0 13.5 66.9 50.0 16.9 69.2 52.0 17.2 75.9 54.9 21.0 96.1 57.6 38.5 93.0 103.2 61.2 58.4 31.8 44.9 98.4 59.3 39.1 89.9 60.7 29.1 92.1 62.3 29.8 91.6 62.5 29.1 Rental income of persons................................. 5.4 2.0 3.5 9.4 23.9 25.2 25.9 26.1 26.5 26.4 26.3 26.6 26.8 10.5 - 1 .2 15.2 37.7 69.2 78.7 92.2 105.1 105.9 106.4 107.7 105.6 105.8 10.0 17.7 42.6 74.0 83.6 Employer contributions for social in surance .................................................. Corporate profits and inventory valuation adjustment..................................................... Profits before ta x .......................................... 1 .0 .5 7.6 17.8 34.8 2.0 - 1 .6 10.1 24.9 39.3 46.1 5.8 2.8 .4 24.7 14.6 25.0 21.1 Inventory valuation adjustment.................. .5 - 2 .1 - 2 .5 - 5 .0 - 4 .8 - 4 .9 Net interest....................................................... 4.7 4.1 3.2 2.0 36.5 41.6 Profits tax liability.................................... Profits after ta x ........................................ Undistributed profits........................... 1.4 4.9 8 .6 4.4 5.7 8.8 16.0 N o t e .—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N o te to table above. 37.5 51.4 26.4 99.2 122.7 141.4 122.7 135.4 139.0 157.0 49.8 55.8 49.5 52.2 55.9 62.1 72.9 85.7 73.2 83.2 83.1 94.3 27.3 29.6 32.1 30.7 31.6 32.5 33.2 30.3 43.3 53.0 42.5 51.6 50.5 61.1 41.5 57.7 33.3 - 7 . 0 - 1 7 .6 - 3 5 . 5 -1 6 .3 - 2 7 .7 -3 3 .4 - 5 1 .2 -2 9 .9 45.6 52.3 61.6 55.5 57.5 60.1 62.8 65.9 MARCH 1975 □ NATIONAL PRODUCT AND INCOME A 57 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1929 1933 1941 1950 1970 1971 1972 1973 1974p 1973 1974 I IV Gross national product. 103.1 Less: Capital consumption allowances.......... Indirect business tax and nontax lia bility.................................................... Business transfer payments................... Statistical discrepancy........................... Plus: Subsidies less current surplus of gov ernment enterprises............................ Equals: National income. Less: Corporate profits and inventory valu ation adjustment................................. Contributions for social insurance........ Excess of wage accruals over disburse ments ................................................... 7.0 8.2 7.0 .6 .7 7.1 .7 .6 11.3 .5 .4 - .1 Net interest paid by government and consumers........................................... Dividends................................................ Business transfer payments................... iv p 18.3 87.3 93.7 102.9 110.8 119.5 113.9 115.8 118.6 120.7 122.9 23.3 93.5 102.7 110.0 119.2 126.9 121.3 122.6 125.9 129.5 129.8 .8 5.2 4.0 4.3 4.6 4.9 5.2 5.1 5.3 5.3 5.0 1.5 - 6 .4 - 2 .3 - 3 .8 - 5 . 0 .0 - 2 . 6 - 6 .3 .3 3.0 .1 .2 1.7 1.1 2.3 .6 - 2 .9 - .1 -2 .7 - 3 .7 - 2 .4 - 2 .7 40.3 104.2 241.1 800.5 857.7 946.5 1,065.6 1,142.8 1,106.3 1,118.8 1,130.2 1,155.5 10.5 - 1 .2 .2 .3 15.2 2.8 37.7 6.9 69.2 57.7 78.7 63.8 92.2 105.1 105.9 106.4 107.7 105.6 105.8 73.0 91.2 101.5 93.9 99.1 100.8 103.0 103.2 .0 .6 .0 .9 1.5 2.6 14.3 75.1 89.0 98.6 2.5 5.8 .6 1.6 2.0 .7 2.2 4.4 .5 7.2 8.8 .8 31.0 24.7 4.0 31.2 25.0 4.3 33.0 27.3 4.6 Plus: Government transfer payments............ III 55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.3 1,344.0 1,358.8 1,383.8 1,416.3 1,430.2 7.9 86.8 II —.1 -.5 .0 .0 - .6 —1.5 .0 113.0 134.6 117.1 123.1 130.6 138.7 145.8 38.3 29.6 4.9 42.3 32.7 5.2 40.4 30.7 5.0 40.8 31.6 5.1 41.9 32.5 5.2 42.7 33.2 5.3 43.6 33.3 5.3 Equals: Personal income.............................. 85.9 47.0 Less: Personal tax and nontax payments. . 2.6 1.5 Equals: Disposable personal income............ 83.3 45.5 92.7 206.9 691.7 746.4 802.5 903.7 979.7 939.4 950.6 966.5 993.1 1,008.8 Less: Personal outlays..................................... 79.1 77.2 1.5 46.5 45.8 .5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 850.1 866.2 894.9 927.6 922.3 80.6 191.0 617.6 667.1 729.0 805.2 876.7 823.9 840.6 869.1 901.3 895.8 2.4 16.8 17.7 19.8 22.9 25.0 24.0 24.4 24.8 25.3 25.5 .9 .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 2.2 1.2 1.0 .9 .9 Equals: Personal saving................................... 4.2 - .9 11.0 13.1 56.2 60.5 52.6 74.4 77.0 89.3 84.4 71.5 65.5 86.5 Personal consumption expenditures.. Consumer interest payments............. Personal transfer payments to for eigners.............................................. 96.0 227.6 808.3 864.0 944.9 1,055.0 1,150.5 1,099.3 1,112.5 1,134.6 1,168.2 1,186.9 3.3 20.7 116.6 117.6 142.4 151.3 170.8 159.9 161.9 168.2 175.1 178.1 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 622.9 610.3 603.5 602.9 594.8 N o t e . — Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N o t e to table at top of opposite page. PERSONAL INCOME (In billions of dollars) Item 1973 1974 1974 Jan. Feb. Mar. Apr. May June 1975 July Aug. Sept. Oct. Nov. Dec. Jan. Total personal income.............. 1,055.0 1,150.5 1,107.0 1,113.4 1,117.1 1,125.2 1,135.2 1,143.5 1,159.5 1,167.2 1,178.0 1,185.0 1,184.5 1,191.0 1,193.6 Wage and salary disbursements. Commodity-producing in dustries .......................... Manufacturing only .......... Distributive industries. . .. Service industries.................. Government.......................... 691.7 751.2 722.5 728.3 732.1 737.1 745.3 753.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 251.9 270.9 262.1 264.6 265.3 267.4 270.0 272.6 273.3 276.5 278.3 279.5 272.3 269.3 265.9 209.7 205.3 196.6 211.3 204.1 204.9 205.5 207.8 210.1 212.5 165.1 178.9 172.0 172.8 173.9 175.3 177.8 179.1 128.2 142.6 135.3 137.0 138.2 139.1 141.1 142.6 146.6 158.8 153.0 153.8 154.6 155.3 156.3 158.9 214.0 180.8 143.5 162.1 215.5 180.7 144.9 159.5 217.8 183.1 146.4 159.9 219.4 183.8 146.9 162.8 214.2 183.9 147.4 164.2 183.8 148.3 165.2 183.7 150.0 166.1 Other labor income................. 46.0 51.4 48.5 48.9 49.4 49.9 50.5 51.1 51.7 52.3 52.9 53.5 54.0 54.5 54.9 Proprietors’ income.................. Business and professional... F arm ...................................... 96.1 57.6 38.5 93.0 100.8 61.2 58.7 31.8 42.1 98.5 59.4 39.1 96.0 59.9 36.1 92.8 60.2 32.6 89.9 60.8 29.1 86.9 61.2 25.7 90.0 61.9 28.1 93.1 62.5 30.6 93.2 62.5 30.7 91.7 62.5 29.2 91.6 62.5 29.1 91.5 62.5 29.0 89.6 62.7 26.9 Rental income........................... 26.1 26.5 26.4 26.4 26.4 25.5 26.7 26.7 26.6 26.6 26.6 26.7 26.8 26.9 27.0 Dividends.................................. 29.6 32.7 31.4 31.6 31.9 32.1 32.5 33.0 33.1 33.2 33.4 33.5 33.6 32.7 33.9 Personal interest income.......... 90.6 103.8 112.6 Transfer payments................... Less: Personal contributions for social insurance........ 99.0 100.4 102.0 103.5 104.4 105.3 106.9 108.0 109.5 111.1 117.8 139.8 126.7 128.4 129.5 134.6 135.8 137.0 142.5 143.6 146.0 147.6 149.8 156.1 158.8 48.5 48.4 48.6 48.9 48.5 48.4 48.8 42.8 47.9 97.5 46.7 98.3 46.8 47.0 47.2 47.6 47.9 Nonagricultural income............ 1,008.0 1,109.0 1,055.5 1,064.9 1,071.6 1,083.1 1,096.6 1,106.8 1,121.7 1,126.8 1,137.4 1145.9 1,145.2 1,151.4 1,156.0 37.7 Agricultural income.................. 47.1 41.5 51.5 48.5 45.5 42.1 38.6 36.8 39.3 39.5 39.3 40.4 40.6 37.1 N o t e . —Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also N o t e to table at top of opposite page. A 58 FLOW OF FUNDS □ MARCH 1975 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 HI H2 Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors................. E x clu d in g e q u itie s ................................................. 69.9 69.6 67.9 66.9 82.4 80.0 95.9 95.9 U.S. Government....................................................... Public debt securities.............................................. Budget agency issues.............................................. 1.8 1.3 .5 3.6 2.3 1.3 13.0 8.9 4.1 6 All other nonfinancial sectors..................................... Corporate equities.................................................. 7 8 D e b t in s tr u m e n ts .............................................. 68.1 .3 67.9 64.3 1.0 63.3 38.8 7.3 5.9 25.6 15.4 3 .6 4 .4 2 .2 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 Debt capital instruments....................................... State and local government securities................ Corporate and foreign b o n d s........................... Mortgages............................................................ Home mortgages .............................................. Other residential.............................................. Commercial...................................................... Farm ................................................................. Other private credit................................................ Bank loans n.e.c.................................................. Consumer credit................................................. Open-market paper............................................ 22 23 24 25 26 27 28 29 30 31 32 33 C o rp o ra te e q u itie s .............................................. 34 35 36 37 38 39 91.8 88.0 98.2 147.4 169.4 187.4 175.7 190.8 160.6 92.5 135.9 158.9 180.1 172.4 185.5 159.3 1 2 13.4 - 3 .6 10.3 - 1 .3 3.1 - 2 .4 12.8 12.9 - .1 19.6 21.1 - 1 .5 3 4 5 69.4 2.4 67.0 82.5 * 82.6 95.5 3.9 91.6 85.4 121.9 152.1 177.7 162.7 184.5 141.0 5.8 11.5 10.5 7.2 3.3 5.4 1.2 79.7 110.4 141.6 170.4 159.4 179.2 139.7 6 7 8 38.9 5.6 11.0 22.3 45.7 7.8 15.9 22.0 50.6 9.5 14.0 27.1 57.6 11.2 20.6 25.7 84.2 17.6 19.7 46.9 94.9 14.4 13.2 67.3 97.1 13.7 10.2 73.2 11.7 3.1 5 .7 1.8 11.5 3 .6 4 .7 2.3 15.1 3 .4 6 .4 2 .2 50.6 9.9 13.0 27.7 15.7 4 .7 5 .3 1.9 12.8 5.8 5 .3 1.8 22.1 26.1 8.8 10.0 2.0 39.6 10.3 14.8 2 .6 43.3 8.4 17.0 4 .4 25.5 26.0 - .5 17.3 13.9 3.4 9.7 7.7 2.0 29.0 14.1 9.6 - .3 5.6 24.4 10.7 6.4 1.0 6.2 21.3 9.5 4.5 2.1 5.1 32.0 13.1 10.0 1.6 7.2 41.0 15.3 10.4 3.3 12.0 By borrowing sector................................................ D e b t in s tr u m e n ts .............................................. Foreign................................................................ State and local governments.............................. Households.......................................................... Nonfinancial business........................................ 68.1 67.9 2.4 7.7 28.3 29.5 69.4 67.0 4.0 7.9 19.3 35.7 82.5 82.6 2.7 9.8 30.0 40.1 95.5 91.6 3.2 10.7 31.7 46.0 Nonfarm noncorporate.................................... Corporate ......................................................... 3 .3 5 .7 20.4 64.3 63.3 1.8 6.3 22.7 32.5 3.1 5.4 24.0 3 .6 5 .0 27.2 2.8 5 .6 31.7 3 .2 7.4 35.5 .3 .3 * 1.0 - .3 1.3 2.4 .1 2.4 * .2 - .2 3.9 .5 3.4 5.8 .1 5.7 11.5 * 11.4 10.5 - .4 10.9 2.7 29.4 20.4 - 1 .0 1.5 33.8 25.3 - .4 2.8 4.0 38.1 39.9 29.6 31.5 1.2 - 1 .1 3.7 49.4 38.9 .4 2.7 48.0 39.5 2.8 4.6 59.6 46.8 3.2 4.3 7.5 70.5 85.1 55.3 67.2 - . 3 - 1 .7 70.9 2.8 68.3 4.0 81.3 11.8 Foreign................................................................ Corporate business............................................. Totals including equities Foreign................................................................ Nonfinancial business........................................ Corporate........................................................ Memo: U.S. Govt, cash balance......................... Totals net of changes in U.S. Govt, cash balances Total funds raised...................................................... By U.S. Government............................................ 97.1 91.4 14.5 - 4 . 0 6.4 6.0 3.8 5.9 26.3 46.7 9.3 21.8 11.2 19.2 - . 9 - 1 .6 6.6 7.3 73.4 38.6 22.9 1.8 10.0 13.0 13.1 -.1 6.3 5.1 1.2 92.9 100.9 17.0 17.8 20.9 20.2 55.0 62.9 31.3 7.5 11.3 4.8 66.5 29.9 9.6 14.9 12.1 35.8 7.3 15.7 4.1 78.2 42.1 12.7 15.4 8.1 84.9 16.1 21.7 47.2 26.9 7.7 7.0 5 .5 54.8 17.7 6.6 14.4 16.0 9 10 11 12 13 14 15 16 17 18 19 20 21 85.4 121.9 152.1 177.7 162.7 184.5 141.0 22 79.7 110.4 141.6 170.4 159.4 179.2 139.7 23 2.7 4.6 4.7 7.7 15.7 20.1 11.3 24 11.3 17.8 14.2 12.3 15.8 16.0 15.7 25 23.4 39.8 63.1 72.8 42.5 47.5 37.6 26 42.3 48.2 59.6 77.6 85.4 95.6 75.1 27 3 .2 4.1 4 .9 8.6 7.4 7.3 7.5 28 5 .3 9 .3 6 .7 7.2 8 .7 10.4 6 .3 29 71.3 81.2 61.4 30 33.8 35.4 44.4 59.7 1.2 - .2 1.4 31 32 33 15.5 19.9 11.2 88.9 101.2 76.5 74.7 86.7 62.8 - 4 .8 - 2 .3 - 7 .2 34 35 36 37 95.5 144.2 169.7 189.0 180.5 193.1 167.8 10.0 22.3 17.6 11.4 17.7 8.6 26.8 38 39 1.2 - .2 7.4 3.3 - .2 3.5 5.4 - .2 5.6 Private domestic net investment and borrowing in credit markets Total, households and business 1 T o ta l c a p ita l o u tla y s *...................................... 2 Capital consumption 2........................................... 3 Net physical investment......................................... 4 5 Net funds raised..................................................... Excess net investment 3.......................................... Total business 6 T o ta l c a p ita l o u tl a y s ........................................ 7 Capital consumption.............................................. 8 Net physical investment......................................... 173.1 190.6 188.1 207.6 226.7 224.2 253.5 293.0 334.7 330.7 331.6 329.7 110.3 118.5 128.4 140.4 154.3 166.0 178.9 194.3 211.0 220.4 218.2 222.6 62.8 72.2 59.7 67.2 72.4 58.2 74.6 98.7 123.7 110.3 113.5 107.1 57.8 5.1 56.5 15.7 57.5 69.9 2.2 - 2 . 7 83.6 50.5 33.1 96.4 54.2 42.3 93.4 58.5 35.0 Net debt funds raised............................................. Corporate equity issues......................................... Excess net investment 3.......................................... Corporate business 12 T o ta l c a p ita l o u tl a y s ........................................ 13 Capital consumption.............................................. 14 Net physical investment......................................... 29.5 * 62.3 35.2 27.1 76.5 38.2 38.3 71.4 41.5 29.9 75.0 45.1 29.9 83.7 49.8 33.9 15 16 17 Net debt funds raised............................................ Corporate equity issues.......................................... Excess net investment 3.......................................... Households 18 T o ta l c a p ita l o u tl a y s ........................................ 19 Capital consumption.............................................. 20 Net physical investment......................................... 20.4 * 6.7 24.0 1.3 13.0 27.2 31.7 2.4 - .2 .4 - 1 .6 35.5 3.4 -5 .0 89.6 59.9 29.7 21 22 28.3 1.4 9 10 11 Net funds raised..................................................... Excess net investment 3.......................................... 3.1 81.1 71.4 99.4 133.6 157.9 131.4 148.7 114.1 - 8 .7 - 1 3 .2 -2 4 .8 -3 4 .9 - 3 4 .2 -2 1 .1 - 3 5 .2 - 7 .1 4 5 97.9 108.9 108.0 117.1 134.3 160.5 164.1 166.8 161.4 63.2 69.5 74.6 80.3 88.2 95.2 103.1 100.9 105.3 34.7 39.4 33.5 36.8 46.0 65.3 61.0 65.9 56.1 6 7 8 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 85.4 95.6 75.1 1.4 1.3 2.4 7.4 - .2 3.4 5.7 11.4 10.9 3.5 5.6 8.5 - 3 .2 - 5 .2 - 1 0 .0 -1 4 .5 -2 2 .8 -2 4 .5 -1 9 .8 -2 7 .9 -3 5 .4 - 2 0 .4 9 10 11 87.2 102.5 121.5 125.8 126.0 125.6 57.7 63.0 67.5 72.5 70.8 74.2 29.5 39.4 54.0 53.3 55.2 51.4 12 13 14 33.8 35.4 44.4 59.7 71.3 81.2 61.4 7.4 5.6 1.4 5.7 11.4 10.9 3.5 - 9 .1 -1 7 .3 -1 5 .8 -1 3 .1 -2 1 .4 -3 1 .6 -1 1 .3 15 16 17 94.2 64.3 29.9 94.6 109.7 117.8 116.2 136.4 158.8 174.1 166.6 164.9 168.3 69.9 77.2 84.8 91.4 98.6 106.1 115.7 117.3 117.3 117.3 24.7 32.5 33.0 24.7 37.8 52.7 58.4 49.3 47.6 51.0 18 19 20 22.7 7.2 19.3 5.4 21 22 1 Capital outlays are totals for residential and nonresidential fixed capital, net change in inventories, and consumer durables, except outlays by financial business. 2 Capital consumption includes amounts for consumer durables and excludes financial business capital consumption. 3 Excess of net investment over net funds raised. N o t e . —Full statements for sectors and transaction types are available on a quarterly basis and annually for flows and for amounts outstanding. Requests for these statements should be addressed to the Flow of Funds Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. 1 2 3 30.0 2.5 31.7 1.3 84.0 53.6 30.4 23.4 39.8 63.1 72.8 1.4 - 2 .1 -1 0 .4 -1 4 .4 42.5 6.8 47.5 .2 37.6 13.3 Funds raised by type and sector. Credit flows included here are the net amounts raised by households, nonfinancial business, governments, and foreigners. All funds raised by financial sectors are excluded. U.S. Government budget issues (line 5) are loan participation certificates issued by CCC, Export-Import Bank, FNMA, and GNMA, together with security issues by FHA, Export-Import Bank, and TVA. Issues by Federally sponsored credit agencies are excluded as borrowing by financial institu tions. Such issues are on p. A-59, line 11. Corporate equity issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open market paper is commercial paper issued by nonfinancial corporations plus bankers’ acceptances. M ARCH 1975 □ FLOW OF FU N D S A 59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 Transaction category, or sector 1 Total funds advanced in credit markets to nonfinancial sectors............................................. By public agencies and foreign 2 Total net advances...................................................... 3 U.S. Government securities................................... 4 Residential mortgages............................................ 5 FHLB advances to S&L’s ..................................... 6 Other loans and securities..................................... By agency— 7 8 Sponsored credit agencies...................................... 9 Monetary authorities.............................................. 10 Foreign.................................................................... 11 Agency borrowing not included in line 1................. 12 13 14 15 16 17 18 19 20 21 22 23 Private domestic funds advanced U.S. Government securities................................... State and local obligations..................................... Corporate and foreign bonds................................ Residential mortgages............................................ Other mortgages and loans................................... Less: FHLB advances............................................ 69.6 1966 1968 1969 1970 1971 1972 1973 1974 HI H2 80.0' 95.9 88.0 92.5; 135.9 158.9 180.1 172.4 185.5 159.3 1 11.9 11.3 3.4 6.8 2.8 2.1 .9 - 2 .5 4.8 4.9 12.2 3.4 2.8 .9 5.1 15.7 .7 4.6 4.0 6.3 28.1 15.9 5.7 1.3 5.2 41.7 33.8 5.7 - 2 .7 4.9 18.3 8.4 5.2 * 4.6 33.2 11.0 7.6 7.2 7.5 49.0 8.8 13.9 6.7 19.7 39.7 6.9 11.7 6.8 14.3 58.3 10.8 16.1 6.5 25.0 2 3 4 5 6 4.6 - .1 4.8 2.0 - .6 4.9 3.2 3.7 .3 3.5 2.9 8.9 4.2 - .3 8.8 2.8 10.0' 5.0' 10.3 8.2 3.2 3.2 8.9 26.4 3.8 2.6 7.0 .3 8.4 6.2 3.0 20.3 9.2 .7 19.6 5.9 24.0 6.2 12.9 21.6 2.4 20.3 6.1 10.9 16.8 9.4 27.7 6.2 15.0 26.5 7 8 9 10 11 62.8 * 7.3 6.0 18.6 31.6 .7 59.8 68.1 5.4 5.7 7.8 5.6 10.3 16.0 12.0 13.0 27.4 23.1 .9 - 2 .5 87.2 13.3 9.5 13.8 15.5 35.9 .9 81.1 4.8 9.9 12.5 15.7 42.2 4.0 72.6 98.1 146.7 166.5 145.0 162.5 127.6 5.2 - 4 . 4 15.2 18.4 25.1 16.3 34.0 11.2 17.6 14.4 13.7 17.0 17.8 16.1 20.0 19.5 13.2 10.1 19.8 18.9 20.6 12.8 29.1 44.6 44.1 25.0 31.4 18.6 24.6 33.7 59.5 87.4 64.9 85.0 44.8 * 1.3 - 2 . 7 7.2 6.7 6.8 6.5 12 13 14 15 16 17 18 62.9 45.4 75.3 55.3 35.1 16.9 17.3 5.7 74.9 110.7 153.4 158.8 129.2 154.8 103.7 50.6 70.5 86.6 61.8 87.8 35.9 41.4 49.3 35.1 27.6 35.2 20.1 13.3 17.7 22.1 34.1 28.1 40.0 5.3 15.8 15.0 5.7 3.8 7.7 19 20 21 22 23 74.9 110.7 153.4 158.8 129.2 154.8 103.7 90.3 97.5 84.9 71.9 94.6 49.1 9.3 20.3 31.6 16.6 23.3 9.9 24 25 26 35.5 42.4 40.8 5.2 6.5 11.9 .7 - 1 .0 - 5 .3 13.1 16.7 29.0 16.5 20.2 5.1 37.0 44.6 10.5 13.3 - 2 .3 - 8 .3 23.0 35.1 5.8 4.5 27 28 29 30 31 13.7 1.6 2.1 5.2 4.0 .8 30.9 33.8 14.5 21.2 8.2 16.8 - 1 . 0 - 5 .1 7.3 - 3 .1 1.9 3.9 32 33 34 35 36 37 8.9 3.7 .4 .7 4.1 66.9 1967 2.8 4.9 2.2 5.1 3.8 3.5 .1 - 1 .6 4.8 2.1 P r iv a te fin a n c ia l in te r m e d ia tio n Credit market funds advanced by private financial Commercial banking.............................................. Savings institutions................................................. Insurance and pension funds................................. Other finance.......................................................... 24 Sources o f funds .......................................................... 25 26 Credit market borrowing....................................... 27 28 29 30 31 1965 Foreign funds...................................................... Treasury balances............................................... Insurance and pension reserves......................... Other, net............................................................ P riv a te d o m e s tic n o n fin a n cia l in v e sto rs 28.7 14.3 13.6 6.2 62.9 38.4 7.9 16.6 .8 - 1 .0 11.4 5.4 17.5 7.9 15.5 4.5 45.4 22.5 3.2 19.8 3.7 - .5 13.6 3.0 63.5 35.9 15.0 12.9 - .3 38.7 15.6 14.0 7.0 63.5 75.3 45.9 50.0 - .4 8.5 18.2 14.5 12.7 9.9 55.3 2.6 18.8 63.2 - .3 13.9 2.3 .2 12.0 - .6 21.0 2.6 - .2 11.4 7.2 34.0 12.0 11.0 9.3 - 8 .5 - 3 .2 * 2.9 2.2 10.8 13.1 9.1 13.8 4.4 2.9 44.5 17.0 8.7 6.6 10.2 2.0 32 Direct lending in credit markets............................... U.S. Government securities................................... 33 34 State and local obligations..................................... Corporate and foreign bonds................................ 35 Commercial paper.................................................. 36 37 Other....................................................................... 7.9 2.9 2.6 1.0 1.5 -.1 4.2 17.6 8.4 - 1 .4 2.6 - 2 .5 2.0 4.6 1.9 2.3 2.3 1.7 20.4 8.1 - .2 4.7 5.8 2.1 - 2 .6 - 3 .2 - 9 .0 -1 4 .0 - 1 .2 .6 10.7 9.3 - 4 .4 - .6 1.4 1.5 38 Deposits and currency................................................ Time and savings accounts.................................... 39 40 Large negotiable CD’s ....................................... Other at commercial banks............................... 41 42 At savings institutions........................................ 40.5 32.7 3.6 16.0 13.2 24.4 20.3 - .2 13.3 7.3 52.1 39.3 4.3 18.3 16.7 48.3 5.4 33.9 - 2 .3 3.5 - 1 3 .7 3.4 17.5 12.9 8.0 66.6 56.1 15.0 24.2 16.9 93.7 101.9 81.0 85.2 7.7 8.7 32.9 30.6 40.4 45.9 88.8 76.3 18.5 29.5 28.2 12.6 8.6 3.9 39.3 32.4 18.8 17.9 4.4 12.5 1.1 - 3 . 0 11.3 2.1 3.8 2.9 77.9 103.2 70.5 88.8 24.2 30.3 24.6 32.0 21.7 26.6 52.6 38 52.1 39 18.0 40 17.1 41 16.9 42 43 44 45 Money..................................................................... Demand deposits................................................ Currency.............................................................. 7.8 5.6 2.1 4.1 2.1 2.0 12.8 10.6 2.1 14.5 12.1 2.4 7.7 4.8 2.8 10.5 7.1 3.5 12.7 9.3 3.4 14.3 5.8 8.6 .5 - 2 .9 3.4 43 44 45 46 Total of credit market instr., deposits, and currency. 48.4 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 110.2 134.1 86.3 46 47 48 49 Public support rate (in per cent)........................... Private financial intermediation (in per cent)........ Total foreign funds................................................ 12.8 100.1 .8 17.9 75.9 2.1 14.1 93.2 4.3 12.7 86.4 2.9 17.8 30.4 30.7 11.5 68.3 103.1 112.8 104.5 9.1 1.8 23.2 13.6 16.7 12.3 4.4 18.4 95.4 7.2 7.4 1.4 6.0 28.4 89.1 24.9 21.4 95.3 21.4 36.6 47 81.3 48 28.3 49 Corporate equities not included above 1 Total net issues........................................................... 2 Mutual fund shares................................................ Other equities......................................................... 3 4 Acquisitions by financial institutions....................... 5 Other net purchases................................................... 3.5 3.2 .3 6.1 - 2 .6 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 5.8 4.8 3.7 3.0 2.6 1.1 - . 7 - 1 .6 .6 5.2 7.7 13.6 13.6 1.1 2.5 9.6 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 - 1 .2 - 3 .6 - 4 .4 - 2 .2 - 1 .0 - 4 .5 - 3 .1 - 5 .4 Notes Line 1. Line 2 of p. A-58. 2. Sum of lines 3-6 or 7-10. 6. Includes farm and commercial mortgages. 11. Credit market funds raised by Federally sponsored credit agencies. Included below in lines 13 and 33. Includes all GNMA-guaranteed security issues backed by mortgage pools. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum of lines 27, 32, 39, and 44. 17. Includes farm and commercial mortgages. 25. Lines 39 + 44. 26. Excludes equity issues and investment company shares. Includes line 18. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, and liabilities of foreign banking agencies to foreign af filiates. 6.1 5.9 1.6 - . 8 6.7 4.5 8.9 5.0 1.0 - 3 . 0 6.2 3.9 2.3 1.2 5.0 1 2 3 4 5 29. Demand deposits at commercial banks. 30. Excludes net investment of these reserves in corporate equities. 31. Mainly retained earnings and net miscellaneous liabilities. 32. Line 12 less line 19 plus line 26. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes mortgages. 39+44. See line 25. 45. Mainly an offset to line 9. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. 47. Line 2/line 1. 48. Line 19/line 12. 49. Lines 10 plus 28. Corporate equities Line 1 and 3. Includes issues by financial institutions. A 60 U.S. BALANCE OF PAYMENTS □ MARCH 1975 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions o f dollars. Quarterly figures are seasonally adjusted unless shown in italics.) Line Credits (+ ), debits ( —) 1971 1972 1973 1973 III 1974 IV I 1 2 3 Merchandise trade balance 1. Exports........................... Imports........................... 4 5 Military transactions, net......... Travel and transportation, net. -2 ,9 0 8 -2,341 -3 ,6 0 4 -3 ,0 5 5 -2 ,2 6 6 -2 ,7 1 0 -547 -613 -123 -6 3 0 6 7 8 9 Investment income, net 2...................................... U.S. direct investments abroad 2 ................. Other U.S. investments abroad..................... Foreign investments in the United States 2 . 5,021 4,526 6,385 6,925 3,444 3,494 -4 ,8 0 9 -5 ,8 9 3 5,291 9,415 4,569 -8 ,6 9 3 1,257 2,323 1,179 -2 ,2 4 5 1,378 2,688 1,292 -2 ,6 0 2 10 11 Other services, net 2 ........ Balance on goods and services • 2,781 3,110 -1 7 0 -6 ,0 0 9 Remittances, pensions, and other transfers. -1 ,6 0 4 -1 ,6 2 4 13 Balance on goods, services, and remittances..., -1 ,7 7 4 -7 ,6 3 4 14 U.S. Government grants (excluding military). -2 ,0 4 3 -2,1 7 3 15 Balance on current account...................................... -3 ,8 1 7 -9 ,8 0 7 17 18 19 20 21 22 23 24 27 26 U.S. Government capital flows excluding nonscheduled repayments, net 5.................................................................... Nonscheduled repayments of U.S. Government assets........... U.S. Government nonliquid liabilities to other than foreign official reserve agencies........................................................... Long-term private capital flows, net......................................... U.S. direct investments abroad.......................................... Foreign direct investments in the United States............... Foreign securities................................................................ U.S. securities other than Treasury issues........................ Other, reported by U.S. banks.......................................... Other, reported by U.S. nonbanking concerns............... . Balance on current account and long-term capital 5. Nonliquid short-term private capital flows, net............ Claims reported by U.S. banks............................... Claims reported by U.S. nonbanking concerns Liabilities reported by U.S. nonbanking concerns. Allocations of Special Drawing Rights (SDR’s).......... Errors and omissions, n et.............................................. Net liquidity balance. 34 35 36 37 38 39 40 41 42 Liquid private capital flows, net.............................. Liquid claims...................................................... Reported by U.S. banks............................ Reported by U.S. nonbanking concerns.. Liquid liabilities—............................................. Foreign commercial banks....................... International and regional organizations. Other foreigners...................................... Official reserve transactions balance, financed by changes in—. Liquid liabilities to foreign official agencies........................... Other readily marketable liabilities to foreign official agen cies 6...................................................................................... Nonliquid liabilities to foreign official reserve agencies re ported by U.S. Govt............................................................. . U.S. official reserve assets, n et................................................ . G old..................................................................................... SDR’s ................................................................................. Convertible currencies...................................................... . Gold tranche position in IM F .......................................... 51 52 53 54 55 Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................... Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................ Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)..................................... Balances excluding allocations of SDR’s Net liquidity.................................... Official reserve transactions. For notes see the following page. III p -2 ,7 2 2 -6 ,9 8 6 471 578 1,210 - 7 4 -1,631 -2 ,5 5 7 42,754 48,768 70,277 18,152 20,216 22,299 24,089 24,634 -45,476 -55,754 -69,806 -17,574 -19,006 -22,373 -25,720 -27,191 12 16 II 3,540 4,327 / \ -1 ,9 4 3 2,383 / \ -1 ,9 3 3 -493 -533 -6 6 4 -7 3 0 3,076 1,846 2,215 4,619 4,516 4,738 1,500 1,840 2,209 -3 ,0 4 3 -4 ,5 1 0 -4 ,7 3 2 984 901 921 996 962 1,659 2,736 -1 9 5 3,800 2,897 -1 8 4 4,018 -7 -3 3 9 -412 -1 1 1 -3 9 0 -467 -468 1,247 2,019 -6 2 3 3,077 2,507 -651 -8 0 7 -485 -447 4-2,561 -1,435 -781 1,572 -2 ,0 8 6 -1 ,5 8 8 450 / 762 I -1 ,0 7 1 2,653 3,654 4 -5 4 -4 7 6 1,075 - 1 ,9 5 2 -2,111 -1 ,7 0 5 -2 ,9 3 8 289 227 137 -608 -1 ,0 6 6 4 1,307 * * 4 335 1,111 -478 238 62 -4,381 -9 8 -4,9 4 3 -3 ,5 1 7 -4 ,8 7 2 2,537 -115 383 -807 -966 -6 5 4 4,051 2,289 4,507 -647 -8 6 2 -1 ,1 5 8 -2 0 0 216 341 204 206 1,527 -1,451 -7 1 0 -1 ,3 7 4 886 712 -525 -209 1,173 670 225 -5 0 4 162 -4 3 0 -10,559 -11,235 -2 ,3 4 7 -1,541 -1 ,8 0 2 -1 ,4 5 7 -5 3 0 -305 -1 5 221 717 710 -9 ,7 7 6 -1 ,7 9 0 -21,965 -13,856 -2 ,9 6 3 - 3 ,4 4 8 - 4 ,1 9 4 -2 6 9 * 36 245 274 506 -973 -1 ,9 9 8 -627 -1 ,5 2 7 -1,971 1,281 1,677 -5 0 -646 -313 -3 0 0 687 419 169 -11 -898 96 -178 -331 58 -1 ,0 2 6 / \ 1,891 -4 ,2 7 6 -3 ,9 4 0 -1 ,2 4 0 904 97 -1 ,2 5 3 -3 ,9 6 6 -5 ,4 2 9 -1 ,6 6 8 222 -1 ,1 1 9 -2 ,8 0 7 -5 ,3 2 4 -1,651 -4 6 0 -6 6 4 -1 ,6 2 2 -813 -1 1 0 335 530 463 708 93 222 -741 999 1,795 2,192 -2 ,1 7 9 - 2 ,4 3 5 -3 ,5 8 1 - 5 ,9 9 4 -2,3 0 3 -3 3 6 1,125 1,118 1,686 783 -7 ,6 0 6 / \ 1,652 -869 -1 ,0 5 3 -6 ,2 2 2 - 6,607 -4 ,4 6 6 3,530 2,095 1,697 -493 -2 ,6 0 4 -1,141 -472 -2 ,2 3 2 -1 ,2 3 6 -21 -372 95 4,023 4,699 2,838 3,227 4,644 1,944 384 -585 292 412 640 602 4,138 290 -3 2 0 610 3,848 2,748 221 879 2,302 -7 ,7 8 8 3,502 -1 ,0 9 7 -1 ,2 4 7 -1 ,9 4 4 -566 -7 4 2 -1 ,1 0 3 -841 -531 -505 4,246 -6,691 4,749 2,952 -6 ,9 0 8 3,716 377 682 104 887 -465 929 -29,753 -10,354 -4 5 6 -5 0 3 -5 ,3 0 4 J \ 637 290 -521 -4 5 6 -6 5 811 699 -5 0 162 1,942 -8 9 2,661 939 2,982 -2 2 3 1,042 1,495 -4 ,5 2 5 -5 ,7 4 3 -3 2 8 - 4 ,1 0 5 - 1 ,5 8 4 27,615 9,734 4,452 -1 ,4 8 8 -2,145 -553 4,258 1,289 -551 399 1,118 11 -3 5 4 -277 182 43 341 2,348 866 —249 381 1,350 189 32 547 -703 35 153 -475 209 -4 5 2 -1 3 -147 -1 5 -2 -210 443 -1 -3 5 8 -1 ,0 0 3 9 233 -3 3 13 -1 5 -i -209 -2 9 -8 5 -2 4 4 -123 -1 5 2 -7 2 8 2,772 758 487 393 542 405 -2 2 ,6 8 2 -1 4 ,5 6 6 - 7,606 637 -8 9 -2 2 3 -6 ,6 0 7 -5 ,7 4 3 -3 0 ,4 7 0 -1 1 ,0 6 4 - 5,304 939 2,982 1,495 - 4 ,1 0 5 - 1 ,5 8 4 3,204 4,189 3,157 4,521 498 548 MARCH 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 61 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions o f dollars) Exports 1 Imports 2 1975 1972 1973 9,412 4,436 4,473 4,515 4,417 4,486 4,468 4,565 4,726 4,612 4,738 5,148 5,002 5,244 5,483 5,414 5,360 5,703 5,775 5,829 6,011 5,644 5,996 6,684 6,291 6,536 7,374 7,785 8.064 8,326 8,630 8,962 9,338 8,780 8,862 9.064 9,315 22,324 24,077 25,084 26,509 13,403 13,370 13,903 14,888 16,140 16,838 17,483 18,972 97,907 55,555 69,476 197 2 1973 1974 r Month: Jan..., F eb... Mar... A pr... M a y .. June.. July... Aug... Sept... O ct.. . Nov... D ec... 4.074 3,824 3,869 3,820 3,882 3,971 4.074 4,197 4,176 4,316 4,473 4,558 4,955 5,070 5,311 5,494 5,561 5,728 5,865 6,042 6,420 6,585 6,879 6,949 7,150 7,549 7,625 8,108 7,652 8,317 8,308 8,380 8,396 8,673 8,974 8,862 Quarter: I I I I I I .. . . IV .. . . 11,767 11,673 12,447 13,347 15,337 16,783 18,327 20,413 Year3. .. 49,208 70,823 1 Exports of domestic and foreign merchandise; excludes Dept, of Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. 1974' Trade balance 1972 1975 1973 1974 -361 -649 -647 -596 -604 -497 -491 -530 -436 -421 -675 -444 -289 -413 -103 -4-133 —142 —47 + 37 + 32 +776 +589 + 195 +658 +614 + 175 -1 6 0 +44 -6 7 4 -313 -655 -959 -3 8 4 -189 -91 -453 21,695 25,019 27,081 27,241 -1 ,6 5 7 -1 ,6 9 7 -1 ,4 5 6 -1 ,5 4 0 -804 -5 6 +845 + 1,441 +629 -942 -1 ,9 9 7 -7 3 2 100,972 -6 ,3 4 7 + 1,348 1975 -3 ,0 6 5 9,659 -247 3 Sum of unadjusted figures. N o t e . —Bureau cause of rounding. of the Census data. Details may not add to totals be 3. U.S. RESERVE ASSETS (In millions of dollars) Total 2 Treasury Con vertible foreign curren cies 18,753 17,220 16,843 16,672 16,947 16,057 15,596 15,471 16,889 15,978 15,513 15,388 116 99 212 432 1,690 1,064 1,035 769 1 9 6 5 ... 15,450 19 6 6 ... 14,882 1 9 6 7 ... 14,830 1 9 6 8 ... 15,710 1 9 6 9 ... 5 16,964 13,806 13,235 12,065 10,892 11,859 13,733 13,159 11,982 10,367 10,367 781 1,321 2,345 3,528 52,781 863 326 420 1,290 2,324 1 9 7 0 ... 14,487 1 9 7 1 ... 612,167 19727. . 13,151 19738 . . 14,378 1974. . . 15,883 11,072 10,206 10,487 11,652 11,652 10,732 10,132 10,410 11,567 11,652 629 6 276 241 8 5 1,935 585 465 552 1,852 Gold stock i End of year Total 19 6 1 ... 1 9 6 2 ... 1963... 19 6 4 ... Reserve position in IMF Gold stock SDR’s 3 851 1,100 1,958 2,166 2,374 1 Includes (a) gold sold to the United States by the IM F with the right of repurchase, and (b) gold deposited by the IM F to mitigate the impact on the U.S. gold stock of foreign purchases for the purpose of making gold subscriptions to the IMF under quota increases. For corresponding liabilities, see Table 5. 2 Includes gold in Exchange Stabilization Fund. 3 Includes allocations by the IMF of Special Drawing Rights as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR’s. 4 For holdings of F.R. Banks only, see p. A -ll. 5 Includes gain of $67 million resulting from revaluation of the German mark in Oct. 1969, of which $13 million represents gain on mark holdings at time of revaluation. 6 Includes $28 million increase in dollar value of foreign currencies revalued to reflect market exchange rates as of Dec. 31, 1971. 7 Total reserve assets include an increase of $1,016 million resulting from change in par value of the U.S. dollar on May 8, 1972; of which, NOTES TO TABLE 1 ON OPPOSITE PAGE: 1 Adjusted to balance of payments basis; excludes exports under U.S. military agency sales contracts, and imports of U.S. military agencies. 2 Fees and royalities from U.S. direct investments abroad or from foreign direct investments in the United States are excluded from invest ment income and included in “Other services.” 3 Includes special military shipments to Israel that are excluded from the “net exports of goods and services” in the national income and products (GNP) accounts of the United States. 4 Includes under U.S. Government grants $2 billion equivalent, rep Total 2 Treasury Con vertible foreign curren cies 4 14,643 14,588 14,642 14,870 14,946 14,912 15,460 15,893 15,890 15,840 15,883 11,652 11,652 11,652 11,652 11,652 11,652 11,652 11,652 11,652 11,652 11,652 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,567 11,652 68 9 9 66 94 12 224 246 193 43 5 757 761 824 989 1,005 1,021 1,384 1,713 1,739 1,816 1,852 2,166 2,166 2,157 2,163 2,195 2,227 2,200 2,282 2,306 2,329 2,374 1975— 15,948 Feb........ 916,132 11,635 11,621 11,635 11,621 2 2 1,908 9 2,065 2,403 9 2,444 End of month 1974 Feb.. . . M ar.... Apr.. .. M ay... Ju n e ... July.... Aug. .. Sept__ Oct.. . . Nov.... Dec... . Total Reserve position in IMF SDR’s 3 total gold stock is $828 million (Treasury gold stock $822 million), reserve position in IMF $33 million, and SDR’s $155 million. 8 Total reserve assets include an increase of $1,436 million resulting from change in par value of the U.S. dollar on Oct. 18, 1973; of which, total gold stock is $1,165 million (Treas. gold stock $1,157 million) reserve position in IMF $54 million, and SDR’s $217 million. 9 Beginning July 1974, the IMF adopted a technique for valuing the SDR based on a weighted average of exchange rates for the currencies of 16 member countries. The U.S. SDR holdings and reserve position in the IMF are also valued on this basis beginning July 1974. At valua tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end of Feb. amounted to $2,338 million, reserve position in IMF, $1,972 million, and total U.S. reserve assets, $15,933 million. N o t e . —See Table 20 for gold held under earmark at F.R. Banks for foreign and international accounts. Gold under earmark is not included in the gold stock of the United States. resenting the refinancing of economic assistance loans to India; a cor responding reduction of credits is shown in line 16. 5 Includes some short-term U.S. Govt, assets. 6 Includes changes in long-term liabilities reported by banks in the United States and in investments by foreign official agencies in debt securities of U.S. Federally sponsored agencies and U.S. corporations. N o t e . —Data are from U.S. Department of Commerce, Bureau of Eco nomic Analysis. Details may not add to totals because of rounding. A 62 U.S. GOLD TRANSACTIONS □ MARCH 1975 4. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales [—] or net acquisitions; in millions of dollars valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) 1974 Area and country 1963 1965 1964 1966 1968 1967 1969 1970 1971 1972 I Western Europe: -1 0 0 -8 3 -8 8 4 -2 -8 0 -3 5 -180 -5 0 150 -2 -6 0 -2 80 -3 0 -8 7 9 -5 0 -835 -3 5 -4 9 16 -4 7 200 11 -2 9 -6 5 9 -9 8 0 -6 6 9 969 -2 0 4 150 50 -2 5 * -2 5 * -2 8 -2 3 -1 329 Other................................... 1 -6 Total........................... -399 -1 3 0 IV -7 9 6 United Kingdom................ -5 5 -4 0 -405 -225 -1 200 -6 0 -3 2 -8 1 618 Canada ................................. -2 5 III -1 3 -8 8 -1 ,2 9 9 200 -8 2 -518 II -5 8 600 -601 -2 -8 5 -5 2 -209 -1 9 4 325 500 41 -7 6 -2 5 -1 2 9 -1 1 0 -4 7 3 2 -5 0 51 -5 0 -2 5 -175 Latin American republics: Argentina ......................... Brazil................................... Colombia............................ Venezuela........................... Other................................... -1 1 -9 25 29 -2 5 -1 3 -6 11 -4 0 -2 9 -8 0 -5 T otal........................... 32 56 17 -4 1 9 -6 5 -5 4 -131 -5 -1 0 -4 -56 -1 1 -2 1 -4 2 -1 40 -4 -3 5 -1 0 -2 11 -9 2 -9 1 -3 0 39 -3 42 -213 -3 8 -3 -1 -8 1 -6 -608 -1,031 -1 ,1 1 8 957 -631 -845 -3 -3 10 -1 5 6 -2 2 -5 4 4 967 6-787 -867 -5 4 7 Asia: Iraq ..................................... Japan................................... Lebanon............................. M alaysia............................ Philippines.......................... Saudi A rabia...................... -3 0 72 54 10 -1 4 -1 4 -2 2 -9 5 -3 4 9 -5 0 -8 1 -7 5 -2 4 -8 6 -4 4 -3 6 6 -1 6 -2 2 3-166 3 -6 8 -11 25 20 Other................................... -1 3 -6 T otal........................... 12 All other................................. -3 6 Total foreign countries.......... -3 9 2 3 -7 * -3 6 -1 ,3 2 2 5-225 Inti Monetary Fund4. . . . . . . -392 -3 9 -3 7 -3 6 -1 ,5 4 7 -1 177 22 -431 -1 ,0 0 9 -1,121 1 Includes purchase from Denmark of $25 million. 2 Includes purchase from Kuwait of $25 million. 3 Includes sales to Algeria of $150 million in 1967 and $50 million in 1968. 4 Includes IMF gold sales to and purchases from the United States, U.S. payment of increases in its gold subscription to IMF, gold deposits by the IMF (see note 1 (b) to Table 3), and withdrawal of deposits. The first withdrawal ($17 million) was made in June 1968 and the last with drawal ($144 million) was made in Feb. 1972. IMF sold to the United States a total of $800 million of gold ($200 million in 1956, and $300 million in 1959 and in 1960) with the right of -119 repurchase; proceeds from these sales invested by IMF in U.S. Treasury securities. IM F repurchased $400 million in Sept. 1970 and the remaining $400 million in Feb. 1972. 5 Payment to the IM F of $259 million increase in U.S. gold subscription less gold deposits by the IMF. 6 Includes the U.S. payment of $385 million increase in its gold sub scription to the IMF and gold sold by the IMF to the United States in mitigation of U.S. sales to other countries making gold payments to the IMF. The country data include U.S. gold sales to various countries in connection with the IMF quota payments. Such U.S. sales to countries and resales to the United States by the IMF totaled $548 million each. M ARCH 1975 □ IN TL . C A P IT A L T R A N S A C T IO N S OF T H E U.S. A 63 5. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions o f dollars) Liabilities to foreign countries End of period Total Liquid liabili ties to IMF arising from gold trans actions1 Official institutions2 Liquid liabilities to other foreigners Liquid Total Short term liabili ties re ported by banks in U.S. Nonmar Market ketable able con U.S. vertible U.S. Treas. bonds Treas. and bonds and notes3 notes Nonmar ketable noncon vertible U.S. Treas. bonds and notes4 26,394 196 3 1964 9............. 800 14,425 12,467 1,183 703 /29,313 \29,364 800 800 15,790 15.786 13,224 13,220 1.125 1.125 1.079 1.079 204 204 Liquid liabili Other ties readily to com market mercial able banks liabili abroad 6 ties5 Total Liquid liabili ties to non mone Short tary Market term inti, able liabili and re ties re U.S. gional ported Treas. organi by bonds zations 8 and banks notes3' 7 in U.S. 5,817 158 158 3,387 3,046 341 1,965 7,271 7,303 3,730 3,753 3,354 3,377 376 376 1.722 1.722 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9............. J31,145 \3 1,020 1,011 1,011 14,841 14,896 12,484 12,539 860 860 256 256 328 328 913 913 10,116 9,936 4.271 4.272 3.743 3.744 528 528 906 905 1967 9............. /35,819 135,667 1.033 1.033 18,201 18,194 14,034 14,027 908 908 711 711 741 741 1.807 1.807 11,209 11,085 4,685 4,678 4,127 4,120 558 558 691 677 1968 9.............. f38,687 \ 38,473 1.030 1.030 17,407 17,340 11.318 11.318 529 462 701 701 2.518 2.518 2.341 2.341 14.472 14.472 5,053 4,909 4.444 4.444 609 465 725 722 1969 9............. *0/45,755 \45,914 1.019 iol5,975 15,998 1.019 11,054 11,077 346 346 10 555 102,515 555 2,515 1.505 1.505 23.638 23,645 4,464 4,589 3,939 4,064 525 525 659 663 1970—Dec. 9 .. f47,009 \46,960 566 566 23.786 23,775 19.333 19.333 306 295 429 429 3.023 3.023 695 695 17,137 17,169 4,676 4,604 4,029 4,039 647 565 844 846 1971—D ec.n . /67,681 \67,808 544 544 51.209 50,651 39,679 39,018 1.955 1.955 6,060 6,093 3,371 3,441 144 144 10,262 10,949 4,138 4,141 3,691 3.694 447 447 1,528 1,523 196 5 1972—D e c ... . 82,862 61.526 40,000 5,236 12,108 3,639 543 14,666 5,043 4.618 425 1,627 1973—Dec.. .. 92,391 66,810 43,919 5,701 12,319 3.210 1,661 17,647 5,931 5,501 430 2,003 N o v .* .. 89,900 91,857 95,572 97,368 100,929 103,731 106,757 109,751 110,366 111,742 114,484 63,871 64,100 65.527 67,154 68,160 69,994 71,091 70,970 72,601 73,658 74,888 41,556 41,992 43,412 45,175 46,177 47,430 48,447 48,400 50,107 50,831 51,686 12.321 12.322 12.329 12.330 12.330 12.330 12.330 12.330 12.330 12.330 12.330 3.210 3.210 3.210 3.210 3.210 3.655 3.655 3.655 3.655 3.867 3.867 Dec.* 12 117,633 76,315 52,802 5,229 5.192 5.192 5,020 5.013 5.013 5.013 4,940 4.880 4.880 4,906 5,055 5,059 12.330 3.867 1,555 1.384 1.384 1,419 1,430 1,566 1,646 1,645 1,629 1,750 2,099 2,154 2,257 18,040 19,715 22,056 22.103 24,316 24,854 26,517 29,224 27,783 27,900 29.103 29.638 30,293 6,067 6,249 6,571 6,816 6,906 7,173 7,338 7,523 8,051 8,125 8,408 8,871 8,869 5.618 5,839 6,171 6,399 6,540 6,810 6,961 7,157 7,658 7.694 7,927 8,372 8,371 449 410 400 417 366 363 377 366 393 431 481 499 498 1,922 1,793 1,418 1,295 1,547 1,710 1,811 2,034 1,931 2,059 2,135 2,073 2,156 115,837 .............. 75,710 51,691 5,177 12,457 3.867 2,518 29,412 8,715 8,207 508 1,999 1974—Ja......... n Feb.. . . M ar.. . . Apr.. . . May. . . Ju n e ... Ju ly .. . . Aug.. .. Sept.. . . Oct....... 1975—Jan.*... 116,792 76.210 52,804 1 Includes (a) liability on gold deposited by the IM F to mitigate the impact on the U.S. gold stock of foreign purchases for gold subscriptions to the IM F under quota increases, and (b) U.S. Treasury obligations at cost value and funds awaiting investment obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. 2 Includes BIS and European Fund. 3 Derived by applying reported transactions to benchmark data; breakdown of transactions by type of holder estimated for 1963. 4 Excludes notes issued to foreign official nonreserve agencies. 5 Includes long-term liabilities reported by banks in the United States and debt securities of U.S. Federally-sponsored agencies and U S. cor porations. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to commer cial banks abroad and to other foreigners. 7 Includes marketable U.S. Treasury bonds and notes held by commer cial banks abroad. 8 Principally the International Bank for Reconstruction and Develop ment and the Inter-American and Asian Development Banks. 9 Data on the 2 lines shown for this date differ because of changes in reporting coverage. Figures on first line are comparable with those shown for the preceding date; figures on second line are comparable with those shown for the following date. 12.330 3.867 i° Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969 as follows: liquid, $17 million, and other, $84 million. 11 Data on the second line differ from those on first line because cer tain accounts previously classified as official institutions are included with banks; a number of reporting banks are included in the series for the first time; and U.S. Treasury securities payable in foreign currencies issued to official institutions of foreign countries have been increased in value to reflect market exchange rates as of Dec. 31, 1971. 12 See note 3 to Table 6. N o t e . —Based on Treasury Dept, data and on data reported to the Treasury Dept, by banks and brokers in the United States. Data correspond generally to statistics following in this section, except for the exclusion of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign official nonreserve agencies, the inclusion of investments by foreign official reserve agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations, and minor rounding differences. Table excludes IMF holdings of dollars, and holdings of U.S. Treasury ietters of credit and nonnegotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total foreign countries Western Europe 1 1971 1972. 1973. 50,651 61,526 66,810 30,134 34,197 45,717 3,980 4,279 3,853 1,429 1,733 2,544 13,823 17,577 10,884 415 777 788 2,963 3,024 1974- 63,871 64,100 65,527 67,154 68,160 69,994 71,091 70,970 72,601 73,658 74,888 J76.210 176,315 43,270 42,391 42,772 42,638 42,961 43,200 43,002 42,292 42,675 43,041 43,223 44,161 44,169 3,945 4,262 4,195 4,309 4,302 4,201 4,125 3,953 3,819 3,809 3,710 3,665 3,665 2,446 2,744 2,887 3,532 3,384 4,006 3,951 4,127 4,421 3,986 3,619 4,246 4,246 10,479 10,878 11,631 12,360 12,988 13,992 15,209 15,526 16,182 17,186 18,475 18,346 18,448 838 1,000 1,249 1,402 1,620 1,854 2,055 2,272 2,850 2,947 3,204 3,161 3,161 2,893 2,825 2,793 2,913 2,905 2,741 2,749 2,800 2,654 2,689 2,657 2,631 2,626 1975- 75,710 43,234 3,626 3,609 19,446 3,233 2,563 End of period 1 Includes Bank for International Settlements and European Fund. 2 Includes countries in Oceania and Eastern Europe, and Western Euro pean dependencies in Latin America. 3 Because of revisions, data on the two lines or columns shown for this date differ. Figures on first line or column are comparable with those shown for the preceding date; figures on second line or column are com parable with those shown for the following date. Revisions for months prior to Dec. will appear in the Apr. B u l l e t i n . Latin American republics Canada Asia Africa Other countries 2 870 N o t e . —Data represent short- and long-term liabilities to the official institutions of foreign countries, as reported by banks in the United States; foreign official holdings of marketable and nonmarketable U.S. Treasury securities with an original maturity of more than 1 year, except for non marketable notes issued to foreign official nonreserve agencies; and in vestments by foreign official reserve agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations. 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international and regional organizations 6 To all foreigners Payable in dollars End of period U.S. Treasury bills and Demand Time 2 certifi cates 3 Other short term liab. 4 Deposits Total i Total IM F Payable gold in invest foreign ments cur rencies 55,428 60,697 69,022 55,036 60,201 68,425 6,459 8,290 11,310 4,217 5,603 6,863 33,025 31,850 31,886 11,335 14,458 18,366 392 496 597 1974—Ja n ... Feb... Mar.. Apr.., May. June. July.. Aug.. Sept.. Oct... N ov.. Dec.? 67,067 69,239 72,790 74,787 78,365 80,687 83,610 86,642 87,388 88,361 90,672 /92,713 193,448 66,427 68,470 72,024 74,080 77,712 79,895 82,944 85,897 86,693 87,643 89,928 91,947 92,681 10,826 11,477 11,656 11,981 11,675 12,860 12,227 11,848 12,771 11,228 12,860 14,062 14,053 6,809 6,855 6,986 7,324 7,629 8,276 8,661 9,091 9,220 9,789 9,532 10,115 10,111 29,543 30,274 31,444 32,676 33,983 34,038 34,178 33,179 33,467 34,187 35,020 35,190 35,190 19,249 19,864 21,938 22,099 24,425 24,721 27,877 31,778 31,235 32,438 32,515 32,580 33,327 1975—Jan.?. 91,195 90,475 12,336 10,199 36,921 31,019 197 1 197 2 197 3 For notes see the following page. 400 Deposits Total U.S. Treasury bills and Demand Time 2 certifi cates Other short term liab. 7 1,367 1,413 1,955 73 86 101 192 202 83 210 326 296 892 800 1,474 640 770 766 706 653 792 666 746 696 719 744 766 766 1,853 1,693 1,151 1,109 1,333 1,593 1,685 1,861 1,840 1,937 1,956 1,900 1,981 95 77 96 60 95 106 121 81 128 125 128 139 139 89 63 63 57 53 66 66 68 69 89 89 101 105 286 232 227 209 46 91 51 146 75 93 94 25 25 1,383 1,321 765 783 1,139 1,330 1,448 1,567 1,569 1,630 1,645 1,633 1,711 721 1,885 123 104 25 1,633 MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 65 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To official institutions 9 Total to official, banks and other foreigners Payable in dollars End of period Demand Time2 U.S. Treasury bills and certifi cates3 53,661 59,284 67,067 6,386 8,204 11,209 4,025 5,401 6,780 32,415 31,523 31,590 10,443 13,659 16,892 392 496 597 1974—Ja n .... Feb.. . M ar... Apr.. . M ay... Jun.. . J u l.... A ug... Sept... O ct.. . Nov... Dec.® 8 65,214 67,546 71,639 73,677 77,033 79,094 81,925 84,781 85,548 86,425 88,716 /90,814 191,466 10.731 11,399 11,559 11.921 11,580 12,753 12,107 11,767 12,643 11,104 12.732 13.922 13,914 6,720 6,792 6,924 7,267 7,576 8,210 8,596 9,023 9,151 9,700 9,443 10,014 10,006 29,257 30,042 31,217 32,467 33,937 33,947 34,128 33,033 33,392 34,094 34,927 35.165 35.165 17,865 18,543 21,173 21,315 23,287 23,391 26,429 30,212 29,666 30,808 30,871 30,946 31,615 1975—Jan.®.. 89,310 12,213 10,094 36,897 29,386 Total 197 1 197 2 197 3 Deposits Payable in dollars Payable in foreign cur rencies Other short term liab.4 Demand Time2 39,018 40,000 43,919 1,327 1,591 2,125 2,039 2,880 3,911 32.311 31,453 31,511 3,177 3,905 6,245 165 171 127 640 770 766 706 653 792 666 746 696 719 744 766 766 41,556 41,992 43,412 45,175 46,167 47,430 48,447 48,400 50,107 50,831 51,550 52,671 52,802 2,379 2,408 2,631 2,920 2,352 2,643 2,561 2,473 2,824 2,168 2,472 2,947 2,951 3,705 3,703 3,800 3,949 4,025 4,277 4,463 4,447 4,311 4,483 4,122 4,330 4,325 29,152 29,917 31,064 32.312 33,731 33,745 33,749 32,687 32,955 33,634 34,467 34.656 34.656 6,192 5,836 5,790 5,867 5,931 6,638 7,547 8,665 9,890 10,418 10,498 10,610 10,742 127 127 127 127 127 127 127 127 127 127 127 127 721 51,691 2,187 4,418 36,531 8,555 To banks 10 Deposits Payable in Other foreign short currencies term liab. 7 U.S. Treasury bills and certifi cates 3 Total To other foreigners To banks and other Payable in dollars End of period Total Deposits Demand Time2 U.S. Treasury bills and certifi cates Total m Other short term liab.4 Demand Time2 U.S. Treasury bills and certifi cates Deposits Total Other short term liab. 7 Payable in foreign cur rencies 14,643 19,284 23,147 10,721 14,340 17,178 3,399 4,658 6,941 320 405 515 8 5 11 6,995 9,272 9,710 3,694 4,618 5,500 1,660 1,955 2,143 1,666 2,116 2,353 96 65 68 271 481 936 228 325 469 23,658 1974—Jan.............. Feb.............. 25,554 Mar............. 28,226 28,503 Apr............. M ay............ 30,866 June............ 31,664 July............. 33,478 Aug............. 36,381 35,442 Sept............. 35,594 Oct.............. 37,166 Nov............. /3 8 ,143 Dec.**®........ \38,789 17,527 19,072 21,417 21,524 23,800 24,190 25,978 28,606 27,214 27,309 28,623 29,132 29,654 6,329 6,853 6,573 6,603 6,913 7,692 7,110 6,897 7,098 6,361 7,622 8,265 8,253 517 526 511 683 795 1,004 1,165 1,426 1,576 1,796 1,713 1,882 1,880 14 32 54 63 82 95 204 200 258 268 253 232 232 10,668 11,662 14,279 14,174 16,010 15,398 17,499 20,083 18,282 18,884 18,899 18,753 19,289 5,618 5,840 6,171 6,400 6,540 6,810 6,961 7,156 7,659 7,694 7,927 8,372 8,369 2,024 2,139 2,356 2,398 2,315 2,419 2,436 2,397 2,722 2,574 2,638 2,710 2,709 2,498 2,563 2,613 2,635 2,756 2,929 2,967 3,150 3,264 3,422 3,608 3,802 3,800 91 93 98 92 124 107 175 145 179 193 207 277 277 1,005 1,045 1,104 1,274 1,346 1,355 1,383 1,464 1,495 1,505 1,474 1,583 1,583 513 642 639 579 526 665 539 618 568 591 617 639 766 37,621 28,692 7,400 1,925 158 19,209 8,208 2,625 3,752 209 1,622 721 1971. 1972. 1973. 1975--Jan.®.......... 1 Data exclude ‘‘holdings of dollars” of the IMF. 2 Excludes negotiable time certificates of deposit, which are included in “Other short-term liabilities.” 3 Includes nonmarketable certificates of indebtedness issued to official institutions of foreign countries. 4 Includes liabilities of U.S. banks to their foreign branches, liabilities of U.S. agencies and branches of foreign banks to their head offices and foreign branches, bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of gold by the IM F to the United States to acquire income-earning assets. Upon termination of investment, the same quantity of gold was reac quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop ment and the Inter-American Development Bank. Includes difference between cost value and face value of securities in IM F gold investment account. 7 Principally bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. 8 See Note 3 to Table 6. 9 Foreign central banks and foreign central govts, and their agencies, and Bank for International Settlements and European Fund. 10 Excludes central banks, which are included in “Official institutions.” N o t e . —“Short term” refers to obligations payable on demand or having an original maturity of 1 year or less. For data on long-term liabilities reported by banks, see Table 9. Data exclude the holdings of dollars of the International Monetary Fund; these obligations to the IMF consti tute contingent liabilities, since they represent essentially the amount of dollars available for drawings from the IMF by other member countries. Data exclude also U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop ment Bank and the International Development Association. A 66 IN TL . C A P ITA L T R A N S A C T IO N S OF T H E U.S. □ MARCH 1975 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1972 1973 Dec. Dec. June July Aug. Sept. Oct. Nov.* Turkey...................................................... United Kingdom..................................... Yugoslavia................................................ Other Western Europe!.......................... U.S.S.R..................................................... Other Eastern Europe............................. 272 1,094 284 163 4,441 5,346 238 1,338 1,468 978 416 256 1,184 2,857 97 5,011 117 1,483 11 81 161 1,483 659 165 3,483 13,227 389 1,404 2,886 965 534 305 1,885 3,377 98 6,148 86 3,352 22 110 310 1,827 266 174 3,425 13,528 232 1,281 2,352 911 411 324 1,211 6,386 125 8,533 100 2,701 27 126 482 1,819 239 203 3,763 12,602 222 1,327 2,232 878 429 362 1,160 7,216 134 8,294 106 2,851 27 133 528 1,928 251 229 3,611 11,873 298 1,101 2,234 894 422 303 1,049 7,850 106 8,969 100 2,829 26 147 595 1,924 268 219 3,561 9,337 293 3,138 2,498 1,023 435 377 1,096 8,388 100 8,606 151 3,122 40 149 566 2,038 285 223 3,920 8,623 255 2,748 3,009 1,131 411 347 1,071 8,847 121 7,562 136 3,329 44 136 557 2,286 338 262 3,822 9,102 213 2,192 3,177 1,181 338 332 1,103 9,378 102 7,698 105 3,432 33 138 607 2,497 369 266 4,274 9,421 248 2,617 3,234 1,040 310 382 1,138 10,007 152 6,909 183 4,051 82 208 607 2,506 369 266 4,274 9,421 248 2,617 3,234 1,040 310 382 1,138 10,007 152 7,501 183 4,051 82 206 597 2,390 369 463 3,933 9,948 253 2,101 3,208 874 310 379 1,132 9,601 169 6,606 187 3,103 65 172 Area and country Europe: Austria...................................................... Belgium-Luxembourg.............................. Denm ark.................................................. Finland..................................................... France...................................................... Germany.................................................. Greece...................................................... Italy.......................................................... Netherlands.............................................. Norway..................................................... Portugal.................................................... Spain......................................................... Sweden...................................................... 1974 1975 Dec.* 8 Jan.* Total.................................................. 27,136 40,742 44,249 44,479 44,749 45,320 44,803 45,789 47,995 48,596 45,861 Canada.......................................................... 3,432 3,627 3,550 3,595 3,250 3,754 4,226 3,725 3,512 3,507 3,405 Latin America: Argentina.................................................. Bahamas 2................................................ Brazil........................................................ Chile.......................................................... Colombia.................................................. Cuba.......................................................... Mexico...................................................... Panam a.................................................... Peru.......................................................... Uruguay.................................................... Venezuela................................................. Other Latin American republics............. Netherlands Antilles and Surinam......... Other Latin America............................... 638 540 605 137 210 6 831 167 225 140 1,078 861 86 44 924 824 860 158 247 7 1,285 282 135 120 1,468 884 71 359 1,379 1,487 782 240 217 6 1,412 559 166 121 2,708 1,080 124 450 1,252 1,546 778 279 264 7 1,411 566 197 122 2,600 1,183 92 671 1,189 3,201 817 253 285 6 1,610 445 185 115 2,999 1,066 103 825 1,105 1,155 873 266 293 7 1,643 511 182 120 3,217 1,214 123 549 1,017 1,672 894 270 292 6 1,731 484 177 128 2,932 1,115 138 478 938 1,740 951 297 305 7 1,731 474 183 140 2,773 1,176 135 111 886 1,489 1,035 276 305 7 1,772 490 275 147 3,238 1,316 158 462 886 1,493 1,035 276 305 7 1,772 490 275 147 3,238 1,317 158 510 900 2,160 859 284 319 6 1,741 511 256 152 2,868 1,208 155 909 Total.................................................. 5,568 7,626 10,732 10,964 13,099 11,256 11,335 11,627 11,856 11,910 12,329 Asia: China, People’s Rep. of (China Mainland) China, Republic of (Taiwan).................. Hong Kong.............................................. India.......................................................... Indonesia.................................................. Israel......................................................... Japan........................................................ K orea........................................................ Philippines................................................ Thailand.................................................... O ther........................................................ 39 675 318 98 108 177 15,843 192 438 171 1,071 38 757 372 85 133 327 6,954 195 515 247 1,202 33 688 462 225 257 256 9,419 262 772 524 2,572 39 772 470 172 863 226 9,974 215 762 451 3,634 40 842 490 131 785 211 9,894 277 715 403 4,272 40 822 621 158 943 217 10,115 304 748 362 4,726 43 797 470 140 1,600 218 10,385 313 726 328 4,832 45 808 551 156 1,363 279 10,869 309 731 333 5,681 50 818 530 261 1,221 386 10,890 385 747 333 5,445 50 818 530 261 1,221 386 10,897 384 747 333 5,447 50 977 558 204 1,302 414 10,440 315 702 337 6,003 Total.................................................. 19,131 10,826 15,470 17,578 18,062 19,056 19,851 21,125 21,066 21,073 21,302 Africa: Egypt......................................................... Morocco........................ ......................... South Africa............................................ Zaire.......................................................... Other......................................................... 24 12 115 21 768 35 11 114 87 808 84 39 102 58 1,911 91 54 170 46 2,042 105 63 156 46 2,258 73 79 157 43 2,893 109 73 138 41 2,973 109 59 155 82 3,199 103 38 130 84 3,196 103 38 130 84 3,197 104 71 150 66 3,272 Total.................................................. 939 1,056 2,193 2,403 2,627 3,244 3,333 3,604 3,551 3,551 3,664 Other countries: Australia................................................... All other................................................... 3,027 51 3,131 59 2,831 69 2,848 58 2,926 68 2,847 72 2,788 71 2,659 86 2,745 89 2,742 89 2,661 88 Total.................................................. 3,077 3,190 2,900 2,906 2,994 2,918 2,859 2,845 2,834 2,831 2,748 Total foreign countries................................ 59,284 67,077 79,094 81,925 84,781 85,548 86,408 88,716 90,814 91,466 89,310 International and regional: International 3........................................... Latin American regional......................... Other regional4........................................ 951 307 156 1,627 272 57 1,250 222 122 1,328 248 108 1,512 257 93 1,479 256 103 1,610 227 100 1,677 208 71 1,632 200 68 1,710 202 69 1,610 226 50 Total.................................................. 1,413 1,955 1,593 1,685 1,861 1,840 1,937 1,956 1,900 1,981 1,885 Grand Total...................................... 60,697 69,022 80,687 83,610 86,642 87,388 88,345 90,672 92,713 93,448 91,195 For notes see the following page. MARCH 1975 □ IN TL . C A P ITA L TR A N S A C T IO N S OF T H E U.S. A 67 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY— Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1972 Area and country 1974 1973 1972 Apr. Apr. Dec. Apr. Other Western Europe: Cyprus....................................... Iceland...................................... Ireland, Rep. o f........................ 2 9 15 3 9 17 9 12 22 19 8 62 10 11 53 Other Latin American republics: Bolivia....................................... Costa Rica................................ Dominican Republic................ Ecuador.................................... El Salvador............................... Guatemala................................ H aiti........................................... Honduras.................................. Jamaica..................................... Nicaragua................................. Paraguay................................... Trinidad and Tobago.............. 53 70 91 62 83 123 23 50 32 66 17 15 87 92 114 121 76 132 27 58 41 61 22 20 65 75 104 109 86 127 25 64 32 79 26 17 68 86 118 92 90 156 21 56 39 99 29 17 102 88 137 90 129 245 28 71 52 119 40 21 Other Latin America: Bermuda.................................... British West Indies................... (2) 23 (2) 36 127 100 242 109 201 Other Asia: Afghanistan............................... Burma........................................ Cambodia................................. Jordan........................................ 17 5 2 2 25 2 3 4 19 17 3 4 22 12 2 6 Apr. 1974 Dec. Apr. Dec. Apr. Other Asia—Cont.: Laos.............................................. 3 Lebanon....................................... 60 Malaysia....................................... 25 Pakistan........................................ 58 Ryukyu Islands (incl. Okinawa) 6 53 Singapore..................................... 45 Sri Lanka (Ceylon)..................... 6 Vietnam........................................ 185 Oil-producing countries ?........... 227 2 55 54 59 3 55 59 93 3 62 58 105 77 5 135 534 53 6 98 486 141 13 652 Other Africa: Algeria.......................................... 31 Ethiopia (incl. Eritrea)................ 29 Ghana........................................... 11 Kenya........................................... 14 Liberia.......................................... 25 Libya............................................ 296 Nigeria.......................................... 56 2 Southern Rhodesia...................... Sudan............................................ 5 6 Tanzania....................................... Tunisia.......................................... 7 Uganda......................................... 10 Zambia......................................... 7 32 57 10 23 30 393 85 2 3 11 10 7 28 51 75 28 19 31 312 140 1 3 16 11 19 37 111 79 20 23 42 331 78 2 3 12 7 6 22 110 118 22 20 29 30 34 39 33 All other: New Zealand............................... 1 Includes Bank for International Settlements and European Fund. 2 Bermuda included with Bahamas through Dec. 1972. 3 Data exclude holdings of dollars of the International Monetary Fund. 4 Asian, African, and European regional organizations, except BIS and European Fund, which are included in “Europe.” 1973 Area and country 27 68 40 108 165 13 98 1,331 1 2 12 17 11 5 Represent a partial breakdown of the amounts shown in the other categories (except “Other Eastern Europe”). 6 Included in Japan after Apr. 1972. 7 Includes Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, Syria, and United Arab Emirates (Trucial States). 8 See Note 3 to Table 6. 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To inti. and regional Country or area To foreign countries End of period Total 1971.............................. 1Q 9 '7'^ 902 J1,000 \1 ,018 1,467 446 562 580 761 457 439 439 706 144 93 93 310 237 259 259 296 56 87 87 100 164 165 165 165 D ec.?................ 1,496 1,519 1,577 1,690 1,657 1,650 1,671 1,516 1,404 1,332 1,318 1,270 821 888 951 1,025 1,005 974 978 1,005 920 852 832 768 675 631 626 665 652 676 693 511 484 480 485 501 310 259 259 294 296 321 319 118 95 111 112 124 275 286 276 282 282 283 299 316 316 299 298 299 90 86 87 89 74 73 75 77 73 71 75 79 1975—Jan.?................. 1,366 769 598 223 303 71 1973.............................. 1974—Jan..................... Feb.................... Mar................... Apr.................... M ay .................. June.................. July................... Aug................... Sept................... Oct.................... Total Official institu tions Other Banks1 foreign ers 1 Excludes central banks, which are included with “Official institutions.” Ger many United King dom Total Other Latin Europe America Japan Other Asia All other coun tries 30 32 32 245 111 136 136 132 3 1 1 5 87 32 32 78 9 10 10 16 165 165 165 165 165 165 171 170 170 170 170 170 52 63 63 66 65 58 45 56 56 56 56 60 60 48 48 48 236 231 232 227 220 220 233 47 47 45 45 46 119 128 130 152 144 144 142 142 123 116 116 115 2 2 2 2 2 2 2 1 1 1 1 1 78 35 39 50 52 77 77 77 70 87 88 101 10 13 13 13 13 12 13 13 13 13 17 20 170 47 40 118 1 200 22 2 Data on the 2 lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1973 Dec. Europe; Feb. Other Western Europe................... Eastern Europe............................... 7 235 34 423 86 5 7 260 32 450 91 5 Sweden............................................ Mar. 7 260 34 439 90 5 Apr. 7 260 33 457 89 5 May 7 260 35 428 87 5 June 7 260 34 424 89 5 1975 July Aug. 9 260 35 426 97 5 Sept. 9 260 34 439 101 5 Oct. Dec.* Jan.* 10 250 30 485 102 5 10 250 34 459 96 5 Nov. 10 276 30 498 98 5 10 251 30 493 97 5 11 252 31 529 89 5 T otal......................................... 789 845 835 851 823 819 832 849 854 883 917 885 916 Canada................................................ 582 832 847 848 849 849 851 756 706 707 711 713 697 Latin America: Latin American republics............... Other Latin America...................... 11 3 11 3 11 3 11 3 11 5 11 5 11 5 11 5 11 17 11 25 11 62 12 88 11 88 Total......................................... 14 14 14 14 16 16 16 16 28 36 74 100 99 Other Asia....................................... 4,552 11 3,718 11 3,703 11 3,531 11 3,499 12 3,498 12 3,497 12 3,498 12 3,497 12 3,497 12 3,498 12 3,498 212 3,498 325 T otal........................................ 4,563 3,729 3,714 3,542 3,510 3,510 3,509 3,510 3,509 3,509 3,509 3,709 3,822 158 157 157 157 157 157 156 151 151 151 151 151 151 All other..................... ............. .......... 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries....................... 6,131 5,602 5,592 5,437 5,379 5,376 5,390 5,306 5,273 5,311 5,387 5,557 5,685 International and regional: International................................... Latin American regional................ 1 48 51 49 217 49 141 44 174 41 57 60 51 75 102 71 23 68 71 52 112 67 113 61 53 61 Asia: Total......................................... 49 100 267 185 214 117 126 173 91 123 179 174 114 Grand total.............................. 6,179 5,702 5,859 5,622 5,594 5,493 5,516 5,479 5,3(>4 5,434 5,566 5,731 5,799 N o t e .— Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1 year, and are based on benchmark surveys of holdings and regular monthly reports of securities transactions (see Table 14). 11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in foreign currencies Payable in dollars Loans to— End of period Total Total Total Official institu tions Banks1 Others Collec Accept ances tions made out for acct. stand of for ing eigners Other Total Foreign govt, se Deposits curities, with for coml. eigners and fi nance paper Other 1971.............................. 13,272 /15,471 10*70 9 \ 15,676 1973.............................. 20,726 12,377 14,625 14,830 20,064 3,969 5,674 5,671 7,689 231 163 163 271 2,080 2,975 2,970 4,555 1,658 2,535 2,538 2,863 2,475 3,269 3,276 4,307 4,254 3,204 3,226 4,156 1,679 2,478 2,657 3,912 895 846 846 662 548 441 441 428 173 223 223 119 174 182 182 115 1974—Jan..................... Feb.................... Mar................... Apr.................... M ay.................. June.................. July................... Aug................... Sept................... Oct.................... Nov.*............... Dec.*3............... 21,101 22,986 25,671 26,580 29,745 32,253 33,532 35,057 33,885 33,696 35,871 (37,846 \38,366 20,298 22,141 24,823 25,723 28,862 31,296 32,529 34,252 32,968 32,667 34,843 36,636 37,156 7,391 7,932 9,068 9,578 9,959 11,494 10,924 11,634 10,606 10,080 11,040 11,383 11,383 303 303 421 346 363 386 475 448 507 348 439 418 394 4,400 4,966 5,793 6,141 6,372 7,743 6,848 7,809 6,720 6,371 7,174 7,406 7,430 2,688 2,662 2,855 3,090 3,223 3,364 3,601 3,377 3,379 3,361 3,426 3,559 3,559 4,387 4,427 4,642 4,805 5,081 5,107 5,152 5,295 5,245 5,356 5,345 5,636 5,637 4,108 4,554 5,126 5,810 6,599 7,584 9,163 9,459 9,538 10,034 10,678 11,188 11,190 4,412 5,228 5,986 5,529 7,223 7,111 7,290 7,864 7,579 7,197 7,779 8,429 8,945 802 844 849 857 884 957 1,003 805 918 1,030 1,028 1,210 1,210 467 594 545 589 611 687 626 461 468 547 515 668 668 162 121 160 99 113 130 207 180 217 243 283 289 289 173 129 144 169 160 141 170 164 233 240 229 253 253 1975—Jan.*................. 38,004 36,787 10,958 352 6,981 3,554 5,564 11,026 9,238 1,288 718 351 219 1 Excludes central banks, which are included with “Official institutions.” 2 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in cover- age with those shown for the preceding date; figures on the second line are comparable with those shown for the following date, 3 See Note 3 to Table 6. MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) Europe: Austria...................................................... Belgium-Luxembourg.............................. D enm ark................................................... Finland...................................................... France....................................................... Germ any................................................... Greece....................................................... Italy ........................................................... Netherlands.............................................. N orw ay..................................................... Portugal.................................................... Spain......................................................... Switzerland............................................... Turkey....................................................... United Kingdom..................................... Yugoslavia................................................ Other Western Europe............................. U.S.S.R...................................................... Other Eastern Europe............................. 1972 1973 Dec. Area and country Dec. June July Aug. Sept. Oct. N ov.p 11 148 48 108 621 311 35 316 133 72 23 222 153 176 10 1,459 10 27 46 59 104 231 65 134 731 422 49 572 212 91 32 404 117 663 10 2,361 20 26 47 84 18 267 45 150 703 372 61 437 165 103 30 392 119 386 26 2,260 26 19 35 105 72 208 49 151 760 379 66 441 112 136 24 382 139 355 19 2,513 25 22 30 106 17 165 51 146 637 342 59 354 130 113 26 253 159 377 15 2,112 28 18 21 102 21 301 59 128 485 332 48 340 176 94 35 227 149 277 15 1,486 24 31 27 105 42 308 45 107 791 438 57 340 183 97 25 201 160 339 14 2,131 28 38 28 86 8 120 59 118 330 321 29 255 108 69 19 207 164 125 6 997 22 20 41 49 1974 1975 Dec.**2 Jan.p 21 384 46 122 673 588 64 345 348 119 20 196 180 335 15 2,203 22 22 46 131 21 384 46 122 673 589 64 345 348 119 20 196 180 335 15 2,402 22 22 46 131 18 401 54 132 867 390 52 351 195 115 16 184 128 251 23 2,663 38 22 44 124 3,067 3,988 6,374 5,720 5,986 5,124 4,358 5,459 5,878 6,077 6,067 Canada.......................................................... 1,914 1,955 2,195 2,340 2,111 2,032 2,556 2,517 2,768 2,773 2,904 Latin America: Argentina.................................................. Bahamas 1................................................ Brazil......................................................... Chile.......................................................... Colombia.................................................. Cuba.......................................................... Mexico...................................................... Panam a..................................................... Peru........................................................... Uruguay.................................................... Venezuela.................................................. Other Latin American republics............. Netherlands Antilles and Surinam......... Other Latin America............................... 379 519 649 52 418 13 1,202 244 145 40 383 388 14 36 499 875 900 151 397 12 1,373 266 178 55 518 493 13 140 673 1,887 1,477 187 522 13 1,725 387 281 40 606 676 41 298 686 1,558 1,507 224 601 12 1,775 394 353 59 644 691 38 234 704 2,085 1,522 231 679 13 1,833 401 421 50 642 701 56 354 695 2,485 1,534 250 665 14 1,711 410 408 47 627 712 64 245 679 2,791 1,476 256 686 13 1,841 405 433 46 557 725 61 517 704 2,616 1,493 291 675 13 1,898 402 486 63 643 810 74 655 720 2,944 1,415 290 713 19 1,968 497 518 63 704 852 69 887 720 2,940 1,415 290 713 14 1,972 507 518 63 704 852 69 1,142 783 2,864 1,265 303 706 13 1,894 612 504 75 796 873 45 1,451 Total.................................................. 4,480 5,870 8,813 8,778 9,692 9,869 10,486 10,823 11,659 11,918 12,182 Thailand.................................................... O ther......................................................... 1 194 93 14 87 105 4,152 296 149 191 300 31 140 147 16 88 166 6,400 403 181 273 394 23 357 208 18 115 158 10,845 620 302 421 713 28 406 200 20 117 205 12,397 641 295 427 820 22 446 271 34 120 205 12,812 706 348 429 681 9 461 243 17 122 197 12,378 733 340 436 669 7 496 214 19 128 200 11,669 760 346 414 669 5 482 238 16 140 208 12,350 835 324 416 666 4 497 223 14 157 250 12,439 955 371 441 771 4 497 223 14 156 250 12,496 955 371 441 771 18 524 203 19 142 265 11,810 1,116 300 374 739 Asia: China, People’s Rep. of (China Mainland) China, Republic of (Taiwan).................. Hong Kong............................................... India.......................................................... Indonesia.................................................. Israel.......................................................... Jap an ........................................................ K orea........................................................ Total.................................................. 5,584 8,238 13,780 15,556 16,073 15,605 14,921 15,680 16,121 16,178 15,508 Africa: Egypt......................................................... Morocco................................................... South Africa......................... .................. Zaire.......................................................... Other......................................................... 21 4 143 13 118 35 5 129 60 159 66 5 202 91 273 68 14 213 93 286 83 10 238 97 275 97 10 243 94 311 93 11 282 107 312 91 12 299 101 291 111 18 329 96 299 111 18 329 96 299 106 19 364 31 265 Total.................................................. 299 388 637 675 702 755 806 795 854 854 785 291 40 243 43 383 70 400 63 415 77 422 76 478 91 492 104 466 99 466 99 433 125 Other countries: Total.................................................. 330 286 453 463 492 498 569 597 565 565 558 Total foreign countries................................ 15,674 20,725 32,253 33,531 35,056 33,883 33,696 35,870 37,845 38,365 38,003 37,846 38,366 38,004 International and regional........................... 3 1 1 1 1 2 1 1 Grand to tal....................................... 15,676 20,726 32,253 33,532 35,057 33,885 33,696 35,871 1 Includes Bermuda through Dec. 1972. 2 See Note 3 to Table 6. N o t e . —Short-term claims are principally the following items payable on demand or with a contractual maturity of not more than 1 year: loans made to, and acceptances made for, foreigners; drafts drawn against 1 foreigners, where collection is being made by banks and bankers for their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities, INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 A 70 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions o f dollars) Type Country or area Payable in dollars End of period Total Loans to— Other long term claims Payable in foreign curren cies United King dom Other Europe Latin Canada America Japan Other Asia All other conntries2 Total Official institu tions Banksi Other foreign ers 1971................. 3,667 19723 .............. (4,954 15,063 1973................. 5,962 3,345 4,539 4,588 5,412 575 833 844 1,145 315 430 430 574 2,455 3,276 3,314 3,692 300 375 435 478 22 40 40 72 130 145 150 148 593 704 703 1,107 228 406 406 490 1,458 1,996 2,020 2,112 246 319 353 251 583 881 918 1,320 429 503 514 534 5,907 5,960 6,134 6,742 6,788 7,043 7,072 7,011 6,993 7,244 N o v .? ... 7,261 D ec.?... 7,161 5,359 5,359 5,518 6,099 6,171 6,431 6,460 6,404 6,380 6,565 6,571 6,485 1,132 1,187 1,262 1,552 1,549 1,600 1,469 1,434 1,418 1,440 1,373 1,329 563 584 640 734 755 775 891 895 853 914 933 936 3,665 3,588 3,616 3,814 3,867 4,056 4,099 4,075 4,108 4,211 4,265 4,221 469 522 541 567 550 546 545 539 542 608 618 609 79 79 75 76 67 66 67 68 71 71 72 67 147 154 157 201 224 222 249 285 266 333 339 332 1,109 1,166 1,271 1,556 1,541 1,669 1,586 1,527 1,535 1,725 1,652 1,578 486 457 473 478 467 496 498 503 543 523 506 486 2,078 2,087 2,151 2,365 2,428 2,481 2,546 2,520 2,473 2,489 2,584 2,605 259 256 256 254 241 244 269 269 247 264 257 260 1,319 1,328 1,336 1,357 1,365 1,416 1,406 1,399 1,427 1,396 1,392 1,359 510 512 491 530 521 515 517 509 502 515 531 542 7,275 6,625 1,367 968 4,290 595 54 323 1,669 475 2,616 248 1,388 556 1974—Ja n Feb....... M ar.. . . Apr....... May_ _ June_ _ July. Aug....... Sept...... Oct........ 1975—Jan.?. . . 1 Excludes central banks, which are included with “Official institutions.” 2 Includes international and regional organizations. 3 Data on the 2 lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate securities 2 Marketable U.S., Treas. bonds and notes 1 Foreign stocks Net purchases or sales Period Total Pur chases Foreign Intl. and re g io n a l Total Official Net pur Pur Sales chases or chases sales 57 -165 125 3,258 470 -577 3,281 465 -645 -2 3 19,083 15,015 6 18,569 13,810 69 15,305 13,590 1974— Jan................... Feb.................. Mar.................. Apr.................. May................. June................. July.................. Aug.................. Sept.................. Oct................... Nov.?.............. Dec.?............... -4 3 2 -4 5 157 -237 -2 8 -101 23 -3 7 -116 70 132 162 20 31 166 -8 2 29 -9 7 9 47 -8 2 32 57 -5 -4 5 2 -7 7 -1 0 -155 -5 7 -3 14 -8 4 -3 3 38 76 167 -4 7 2 -3 7 25 150 19 -3 9 -1 0 16 -50 -3 14 -1 1 27 38 50 17 1,717 1,202 1,672 1,126 903 1,174 1,048 1,398 1,360 1,508 1,415 780 1975—Jan.?............... 68 -6 0 127 118 9 1,151 -171 -7 -7 3 -6 0 Net pur Pur Sales chases or chases sales Sales 2,932 -1 ,0 3 1 2,467 -993 3,285 -2,241 2,532 1,729 1,899 2,123 1,554 144 409 176 181 -2 9 2 -4 5 -2 9 5 -219 -6 4 -1 9 7 —158 -1 5 5 -8 0 -276 -7 8 -3 8 0 209 206 167 189 173 207 128 146 145 89 124 117 207 206 183 155 174 117 116 117 100 152 102 87 2 -1 —16 34 -2 90 12 29 45 -6 3 22 30 1,172 -1 ,0 4 6 147 156 -9 Net pur chases or sales Other 1972............................. 3,316 305 1973............................. 1974?........................... -451 i Excludes nonmarketable U.S. Treasury bonds and notes issued to official institutions of foreign countries. 2 Includes State and local govt, securities, and securities of U.S. Govt, agencies and corporations. Also includes issues of new debt securities Foreign bonds 4,068 4,759 1,715 1,901 1,474 1,045 1,454 1,189 1,484 904 852 923 1,054 1,130 1,180 1,363 1,311 744 263 13 188 222 51 251 -6 269 180 145 103 36 71 100 102 103 89 74 94 59 72 86 92 101 891 260 126 364 145 398 323 154 272 251 214 152 362 170 481 sold abroad by U.S. corporations organized to finance direct investments abroad. N o t e . —Statistics include transactions of international and regional organizations. MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Net pur chases or France sales (—) Ger many 2,188 2,785 310 372 439 203 -51 2 29 297 339 330 642 685 36 802 586 846 559 591 513 508 500 443 695 616 427 174 157 49 19 -1 5 8 -1 79 4 -8 2 -7 1 -1 2 68 39 14 22 18 -1 5 13 19 -9 17 5 13 4 5 -26 17 7 8 5 18 17 -30 1 13 37 54 40 35 29 33 39 16 21 9 -2 20 43 40 24 -3 5 11 -9 15 -6 -3 9 -3 5 -1 0 528 202 34 17 Pur chases Sales 14,361 12,762 7,395 12,173 9,978 7,085 1974—Jan.. . Feb.., Mar.. Apr.., M ay.. June.. July. . Aug.., Sept.. O ct... N ov.p , Dec.p . 976 743 896 577 576 521 507 579 447 613 546 414 1975—Jan.*. 730 Period 197 2 197 3 1974*......... Nether Switzer United lands land King dom Other Europe Total Europe 561 366 -262 137 274 50 1,958 2,104 397 -78 99 -6 -3 2 -1 -3 3 256 577 58 83 5 10 28 -6 14 -1 4 -3 6 -1 8 -4 8 9 -21 -5 6 -4 3 -7 1 23 33 25 -3 5 -5 -3 3 -1 1 -3 11 4 9 202 165 91 21 19 16 3 65 -1 -8 9 -7 0 -2 5 -27 * -21 -10 -7 13 10 14 6 3 -2 14 -4 2 1 9 2 -1 5 -7 -2 9 4 2 -5 10 33 -9 -2 9 3 -1 4 -1 5 -1 4 -1 0 -6 9 5 -1 1 9 1 -1 2 2 2 2 * 1 -7 1 16 116 17 -1 2 79 43 Latin Canada America Asia Other1 1 Includes international and regional organizations. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Ger France many Period Total 197 2 197 3 1974*................... 1,881 1,948 1,402 336 201 96 77 -33 34 1974—Ja n 89 Feb........... -1 4 4 Mar.......... 139 Apr........... 203 May......... 66 June......... 242 July.......... -5 Aug.......... 190 Sept.......... 176 Oct........... 226 174 Nov.25. . . . Dec.*........ 48 3 1 1 60 10 5 -1 1 1 10 4 1 Other Nether Switzer United land Kingdom Europe lands 25 1975—Jan. * Total Europe Latin Canada America Asia Other Africa countries Intl. and regional 135 307 96 367 275 349 315 473 64 1,303 1,204 694 82 49 50 22 44 43 323 588 459 148 52 146 23 74 -1 9 183 117 45 -7 9 23 26 64 36 29 54 6 -2 0 54 -1 5 -6 17 1 -1 7 -1 1 -9 -3 -5 -6 159 30 -8 1 114 59 185 100 21 55 25 -2 3 52 14 -2 -1 4 3 1 1 2 4 18 11 -4 1 -5 6 -1 5 4 5 4 2 5 1 17 -1 0 4 -1 1 9 -1 * 3 -3 7 199 -1 5 100 349 45 18 -4 7 215 86 -3 56 -128 -3 6 130 79 -163 -6 1 116 72 1 -1 -1 2 -4 74 62 61 N ote.—Statistics include State and local govt, securities, and securities of U.S. Govt, agencies and corporations. Also includes issues of new -1 10 152 -1 7 7 debt securities sold abroad by U.S. corporations organized to finance di rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM FOREIGN SECURITIES, BY AREA 18. FOREIGN CREDIT AND DEBIT BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Period Total -6 2 2 1972................ 1973................ -818 1974*.............. -2 ,0 6 0 Intl. and re gional Total foreign coun tries -5 3 2 -9 0 139 -9 5 7 -6 0 -2 ,0 0 0 Eu rope Latin Canada Amer Asia ica 505 -635 -141 -569 -588 -1,529 Af rica Other coun tries -6 9 -1 2 0 -9 3 -2 9 6 -168 180 -6 6 3 7 -4 6 4 3 5 3 1 2 12 2 3 -9 5 -2 8 7 -5 2 -3 1 5 -188 -7 1 -1 1 0 -147 -1 2 7 -4 7 -342 -5 9 -255 -8 1 -6 2 -2 4 -4 9 -2 6 -7 8 -6 3 -3 5 -4 1 -8 1 -2 1 -2 7 -2 0 4 -1 1 -288 -1 5 7 -3 5 -121 -108 -1 2 6 -3 7 -2 4 4 -8 -1 9 0 -2 -9 -1 5 6 -2 2 -6 -1 -9 5 * -1 4 -2 5 -1 32 10 12 10 94 24 42 22 -1 8 21 -2 4 -1 -4 * * * 1 —1 — 1 1 — 1 2 12 2 1 3 * 3 * 3 1 3 2 3 * 1975—Jan.*... -1 ,0 5 6 -572 -484 -41 -410 -2 8 -2 6 20 * Credit balances (due to foreigners) Debit balances (due from foreigners) 311 339 336 405 310 316 290 333 1974-M ar........................... 314 312 286 372 29 37 22 -291 -4 6 -3 1 1 -1 8 5 -6 6 -1 0 8 -1 4 6 -1 2 5 -3 5 -3 4 0 -5 6 -3 5 0 1974—Jan....... Feb___ M a r.... A pr.. .. M ay. . . Ju n e .. . July.... Aug---Sept---Oct....... Nov.2 . ’. Dec.*. . End of period 364 243 255 231 383 354 298 293 225 241 178 193 N ote.—D ata represent the money credit balances and money debit balances appearing on the books of reporting brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. a MARCH 1975 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions o f dollars) Claims on U.S. Location and currency form IN ALL FOREIGN COUNTRIES Total, all currencies......................... Month-end 1971—Dec. 1972—Dec. Total 59,807 78,202 Total Parent bank Claims on foreigners Other Total Other branches of parent bank Other banks 4,753 4,678 2,300 2,113 2,453 27565 53,296 71,304 11,210 23,520 11,504 35,773 Non Other Offi bank cial for insti tutions eigners 1,164 17,401 1,594 22,432 1,758 2,220 19,177 56,368 2,693 33,736 4,802 19,490 20,357 227397 23.119 24,583 25.120 25,726 26,413 26,321 26,929 28,353 27,536 2,891 3,144 3,539 3,753 3,703 3,610 3,688 3,422 3,720 3,848 4,018 4,075 34,518 36,360 37,497 39,050 39,534 41,783 41,549 42,931 43,701 44,676 45,658 47,129 4,649 5,081 5,174 5,217 5,510 5,736 5,710 5.878 6,179 5,959 6,078 6,289 861 9,215 1,059 12,264 553 773 1973—Dec., 114,562 117,755 123,997 128,823 132,513 134,954 132,885 133,235 134,845 134,921 136,713 138,960 1971—Dec.. 1972—Dec.. 39,095 52,636 4,501 4,419 2,294 2,091 2,207 2,327 34,041 47,444 6,658 17,307 7,869 26,251 79,445 4,599 1,848 2,751 73,018 12.799 39,527 1,777 18,915 1,828 81,918 83,963 92,908 94,290 100,264 101,702 101,502 105,694 104,292 101,859 104,902 105,617 4,186 4,004 7,394 5.619 7,547 6,453 6,118 9,143 6,342 4,596 6,972 5,984 1,518 1,557 5,250 3,454 5,279 4,043 3,746 6,904 3,917 2,187 4,632 3,810 2,668 2,448 2,143 2,165 2,268 2,410 2,373 2,239 2,426 2,409 2,340 2,174 75,993 78,013 83,572 86,483 90,202 92,630 92,693 93,672 94,901 94,316 94,891 96,478 13,245 13,785 15.799 16,043 16,890 17,478 18,480 19,679 19,412 19,757 20,610 19,665 2,006 2,211 2,487 2,835 2,841 2,803 2,889 2,780 2,873 3,006 3,192 3,289 20,021 21,094 22,013 22,685 23,099 24,529 24,929 25,586 26,293 26,862 27,376 28,520 1,799 1.946 1,941 2,188 2,514 2,619 2,691 2.879 3,049 2.947 3,038 3,155 1971—Dec.. 1972—Dec.. 34,227 43,467 2,693 2,234 1,230 1,138 1,464 1,096 30,675 40,214 5,690 15,965 5,659 23,842 473 8.546 606 10,106 859 1,018 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 2.183 63,757 63,585 68,07€ 68,959 71,982 71,305 69,197 70,382 70,965 68,123 69,137 69,804 1,484 1,477 3,070 2,589 3,792 3,661 3,309 4,008 3,494 1,873 3,387 3,248 521 616 2,319 1,806 2,969 964 861 751 783 823 949 840 741 774 823 818 776 60,185 59,792 63,020 64,238 66,008 65,517 63,711 64,087 64,962 63,914 63,571 64,111 9,123 9,209 10,706 10,819 11,759 11,886 12,486 12,790 12,436 12,386 13,122 12,724 14,359 14,853 15,235 15,572 15,439 16,352 15,932 16,701 16,893 17,141 17,567 17,898 2,087 2,317 1,986 2,131 2.183 2,126 2,177 2,287 2,509 2,336 2,179 2,445 1971—Dec. 1972—Dec., 24.210 30,257 2,585 2.146 21,277 27,664 $,135 4,326 12,572 17,874 4,571 5,464 348 446 1973—Dec.. 40,323 1,642 37,816 6,509 23,899 7,409 865 1974—Jan .. Feb., Mar. Apr., May, June, July. Aug. Sept. O ct.. Nov. Dec. notes see p. A-76. For 3,105 2,797 2,478 2,476 2,566 2,682 2,614 2,498 2,645 2,634 2,592 2,434 1974—Jan.. Feb., Mar. Apr., May. June. July. Aug., Sept. Oct.. Nov. Dec., IN BAHAMAS AND CAYMANS * Total, all currencies........................... 3,205 i l l ,974 1,555 1,612 5,334 3,502 5,327 4,093 3,795 6,957 3,975 2,244 4,686 3,846 1973—Dec., Payable in U.S. dollars. 1,886 4,660 4.409 7,812 5,978 7,893 6,775 6.409 9,455 6.619 4,878 7.279 6.280 1974—Jan.. Feb.. Mar., A pr.. May. June. July. Aug. Sept. Oct.r Nov., Dec.. IN UNITED KINGDOM Total, all currencies.......... 5,091 123,871 127,246 136,983 140,018 145,916 147,465 145,004 148,568 147,643 145,759 150,070 151,529 1973—Dec.. Payable in U.S. dollars. 121,866 1974—Jan.. Feb.. Mar. Apr.. May. June. July. Aug. Sept. Oct.r Nov., Dec.. 42,131 41,762 46,062 46,419 49,654 49,363 48,158 49,406 50,075 47,968 48,710 49.211 1,368 1,384 2,967 2,499 3,693 3,562 3,221 3,915 3,408 1,783 3,277 3.146 39,932 39,409 42,212 42,895 44,825 44,674 43,798 44,269 45,327 44,873 44,198 44,693 6,825 6,902 8,240 8,386 9,285 9,425 9,932 10,529 10,305 10,234 10,796 10,265 25,098 24,415 25,365 25,768 26,994 26,147 24,698 24,500 25,564 25,125 23,551 24,326 8,010 8,093 8,608 8,741 8.546 9,103 9,169 9,241 9,458 9,514 9,852 10,102 830 969 882 10,24 1,135 1,126 1,138 1,222 1,339 1,312 1,235 1,372 1971—Dec. 1972—Dec. 8,234 12,642 1,274 1,486 1973—Dec. 23,771 24,071 25,657 28,444 28,776 30,862 31,217 30,401 32,248 30,078 30,028 32,207 231,512 1974—Jan .. Feb. Mar. Apr. May June July. Aug. Sept. Oct.1 Nov. Dec. 211X2 2,468 3,266 2,721 1,050 2,568 2,472 57,663 57,894 60,563 62,901 64,693 64,441 61.921 60.468 61,102 59.468 58,684 60,220 40,661 40.922 43,273 44,919 47,373 47,819 46,394 45,627 46,322 44,691 43,713 45,004 35,796 34,813 36,192 36,775 37,920 36,468 34,575 33,929 34,804 33,500 32,128 32,701 907 916 887 1,073 889 812 718 666 829 887 753 788 496 214 1,272 111 6$871 10,986 3,620 6,663 3,251 4,322 90 170 2,210 317 1,893 21,041 12,974 8,068 520 2,108 1,874 3,358 2,388 3,164 2,262 2,125 4,305 2,033 1,876 2,827 1,845 273 167 1,971 954 1,698 816 615 2,834 469 380 1,343 463 1,835 1,707 1,386 1,434 1,467 1,446 1,510 1,471 1,564 1,495 1,484 1,382 21,439 23,253 24,475 25,765 26,953 28,168 27,461 27,164 27,189 27,362 28,497 28,851 13.013 14,226 15,404 16,086 17,035 17,643 16,821 16,156 16.013 16,279 17,192 16,853 8,425 9,026 9,071 9,679 9,918 10,524 10,640 11,009 11,177 11,083 11,305 11,998 524 530 611 623 744 787 815 779 856 790 883 815 MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners To U.S. Total Parent bank 658 997 Other 2,403 2,504 Total 54,679 72,121 121 5,126 1,158 3,968 111,615 123 127 136 140 145 147 145 148 147 145 150 151 5, 5,! 6, 1,685 2,023 2,119 2,307 2,938 3,009 4,373 4,011 4,988 5,761 6,054 5,481 3,664 3,911 4,671 4,652 5,057 5,540 5,757 5,296 4,923 4,596 5,652 6,173 113,750 116,392 124,885 127,584 1-31,976 132,326 128,565 132,738 131,015 128,866 131,629 132,943 503 847 2,121 2,202 37,024 50,406 9,911 40 54; Other branches of parent bank Other banks Offi Non bank cial for insti tutions eigners 5,472 8,699 8,351 11,432 10,743 29,765 11,121 41,218 Other 2,069 2,580 Month-end ,1971 —Dec. , ,1972—Dec. 18,213 65,625 10,276 17,563 IN ALL FOREIGN COUNTRIES .. .Total, all currencies 5,125 .........1973—Dec. 18,505 19,307 21,073 22,688 23,941 24,234 25,279 26,000 26,353 26,616 27,754 26,950 Location and currency form r67,726 '■67,531 '•71,736 r71,232 *•74,193 *•71,692 '66,753 68,750 66,060 62,580 63,576 65,683 *•9,823 *•10,373 *-10,746 *•11,612 *•12,187 *•14,388 *15,130 16,304 17,488 18,171 19,979 20,133 '17,696 *•19,181 '21,330 '22,052 '21,655 '22,013 '21,403 21,684 21,114 21,499 20,320 20,178 4,741 .........1974—Jan. 4,919 5,308 5,474 5,944 6,589 6,309 .....................July 6,523 6,718 6,536 6,736 6,931 6,624 21,107 7,955 29,229 4,391 6,781 4,901 6,441 1,250 .........1971—Dec. 1,422 , .1972—Dec. *7,491 9,502 2,611 .........1973—Dec. *•44,903 *•44,438 *48,886 *•47,847 r50,848 *•48,909 *•45,668 48,379 46,017 42,664 43,134 43,671 *7,432 *•8,045 *•8,475 '9,195 *•9,817 *•11,630 *•12,437 13,508 14,533 15,076 16,789 17,392 '9,828 '10,933 '11,945 '12,792 '12,488 '12,748 '12,719 12,819 12,476 12,887 12,052 12,068 2,459 .......1974—Jan. 2,441 .....................Feb. 2,811 2,913 3,461 4,009 3,673 .....................July 3,943 4,078 3,891 3,976 3,949 3,401 18,833 2,961 24,596 4,454 6,433 5,126 7,030 760 .........1971—Dec. 994 ..... 1972—Dec. .Payable in U.S. dollars 993 3,550 73,189 12,554 "43,641 102; 102; 106 ; 105; 103; 107; 107; 1,556 1,870 1,917 2,127 2,741 2,800 4,160 3,820 4,763 5,558 5,828 5,314 3,270 3,559 4,301 4,262 4,664 5,135 5,334 4,853 4,461 4,255 5,192 5,795 74,900 76,745 84,378 85,617 89,846 90,357 89,228 94,154 92,640 90,105 92,255 92,470 12,736 13,329 15,071 15,783 16,694 17,070 18,404 19,449 19,614 19,478 20,280 19,338 34, 43; 109 113 1,544 1,340 31,814 41,020 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 ......... 1973—Dec. 3 i 978 346 269 353 409 749 606 611 713 635 683 889 510 2,083 2,303 2,814 2,714 2,979 3,138 2,828 2,988 2,867 2,544 3,487 3,468 59,356 58,956 63,096 63,914 66,156 65,429 63,557 64,309 64,919 62,621 62,397 63,409 4,350 4,193 4,587 4,975 4,890 4,913 5,099 4,794 5,428 5,237 5,071 4,762 36,796 35,355 37,700 36,524 39,596 36,711 34,293 33,920 33,766 30,621 30,352 32,040 7,880 8,295 8,592 9,240 9,273 11,289 11,643 12,737 13,544 14,051 15,454 15,258 10,332 11,112 12,217 13,175 12,398 12,516 12,521 12,858 12,181 12,712 11,521 11,349 1,941 ......... 1974—Jan. 2,057 1,813 1,922 2,097 2,132 2,201 2,373 2,543 2,275 2,363 2,418 1,405 1,272 23 72 1,383 1,200 22,852 29,002 2,164 13,840 2,008 17,379 3,666 5,329 3,181 4,287 372 535 ......... 1972—Dec. 80 4,544 82, 84; 93. 94; ioo; 61 j 63, 63 j 68 j 68, 71, 71, 69, 70, 70, 68, 69, 69, 24, 30, 2,431 2,429 2,573 3,167 3,123 3,729 3 3; 439 3,701 3,503 3,227 4 — 5,923 6,152 6,262 7,044 7,650 8,612 8,064 8,155 8,326 8,382 8,030 8,696 7,691 7,587 895 .........1974—Jan. 1,006 969 992 1,195 1,239 1,314 1,380 1,486 1,294 1,375 1,328 1,116 1,338 183 ......... 1971—Dec 163 .........1972—Dec. 2,173 113 2,060 36,646 2,519 22,051 2,200 2,346 2,927 2,878 3,481 3,516 3.176 3,448 3.177 2,988 4,037 3,744 329 243 329 384 724 579 568 692 605 651 865 484 1,871 2,103 2,598 2,494 2,757 2,937 2,608 2,756 2,572 2,337 3,172 3,261 37,884 37,579 41,708 42,453 44,625 44,214 43,528 44,654 45,550 44,033 44,256 44,594 2,846 2,729 3,063 3,234 3,083 3,255 3,364 3,278 3,667 3,690 3,557 3,256 1,649 1,818 4,539 8,105 8, 12, 747 1,220 7,305 11,260 23, 1,573 21,747 5,508 r14,563 '1,676 451 24, 25. 28; 1,931 2,244 2,351 2,283 2,567 2,855 3,684 2,797 3,651 4,219 4,231 4,489 21,714 22,979 25,551 26,015 27,704 27,723 26,037 28,713 25,694 25,044 27,196 26,242 5,266 5,587 6,608 7,102 8,255 7,642 7,663 8,124 7,142 7,262 8,629 7,808 *•14,722 *•15,448 *•16,853 *•16,809 *•17,217 *17,593 *"16,223 *■18,403 '16,259 15,650 16,427 16,426 '1,726 '1,944 '2,089 '2,104 '2,231 '2,488 '2,151 '2,186 '2,293 2,132 2,139 2,008 425 435 543 479 591 639 681 738 733 765 780 781 2 8; 30; 31; 30 32, 30; 30; 32 231 p. A-76. see .Payable in U.S. dollars 839 .........1973—Dec. 6,006 6,476 6,830 7,401 7,468 9,137 9,550 10,437 11,035 11,444 12,808 13,225 39, 40, 40, 45, 46, 49, 48, 48, 49, 50, 48, 49, 49, 22,770 21,330 24,164 23,207 26,010 23,669 22,287 22,558 22,818 20,203 20,200 20,526 IN UNITED KINGDOM .. .Total, all currencies IN BAHAMAS AND CAYMANS l .. .Total, all currencies A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1975 20. DEPOSITS, U.S. TREAS. SECURITIES, AND GOLD HELD AT F.R. BANKS FOR FOREIGN OFFICIAL ACCOUNT 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of period Deposits 325 251 418 1972. 1973. 1974. U.S. Treas. securities1 50,934 52,070 55.600 End of period Earmarked gold 215,530 17,068 16.838 1974— Feb.. Mar.. A p r.. M ay. June., July.. Aug.. Sept.. O ct... Nov.. D ec.. 542 366 517 429 384 330 372 411 376 626 418 50,255 51,342 52,642 54,195 54,442 54,317 53,681 53,849 54,691 55,908 55.600 391 409 58,001 60,864 1969................... 1,062 697 1,092 1,078 161 150 203 127 183 173 234 234 86 121 120 68 663 372 577 580 534 443 587 443 / l , 965 12,374 1,446 1,910 169 55 307 340 42 68 702 911 485 536 3,184 2,603 37 431 113 1,128 775 1974—Jan.......... Feb......... Mar......... Apr......... May........ June........ July........ Aug......... Sept........ Oct.......... Nov........ Dec.*___ 2,858 3,260 3,701 3,587 3,683 3,677 3,787 3,521 3,066 2,681 2,953 3,199 2.284 2,624 3,027 2,981 3,051 3,065 3,239 2,958 2,483 2,109 2,355 2,517 59 65 99 60 76 62 74 51 30 25 15 56 365 368 358 339 331 369 341 368 363 331 325 402 149 203 218 209 227 181 133 144 189 216 258 223 1,091 1,229 1,373 1,486 1,442 1,419 1,442 1,437 1,195 1,119 1,283 1,427 772 868 1,029 922 979 926 828 870 864 835 922 905 19722 1 Marketable U.S. Treasury bills, certificates of in debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. 2 The value of earmarked gold increased because of the changes in par value of the U.S. dollar in May 1972, and in Oct. 1973. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. 2 Data on the 2 lines for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. N o t e . —Excludes deposits and U.S. Treasury securities held for international and regional organizations. Ear marked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States. N o t e . — Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 22. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Total Payable in dollars Claims Payable in foreign currencies Total Payable in dollars Payable in foreign currencies Deposits with banks abroad in reporter’s name Other 1970—Dec....................... 2,677 2,182 496 4,160 3,579 234 348 1971—Mar...................... June..................... Sept...................... Dec....................... J 1 2,437 2,375 2,564 2,704 2,763 1,975 1,937 2,109 2,229 2,301 462 438 454 475 463 4,515 4,708 4,894 5,185 5,000 3,909 4,057 4,186 4,535 4,467 232 303 383 318 289 374 348 326 333 244 1972—Mar...................... June..................... Sept...................... Dec.1. ................ J 1 2,844 2,925 2,933 3,119 3,453 2,407 2,452 2,435 2,635 2,961 437 472 498 484 492 5,173 5,326 5,487 5,721 6,366 4,557 4,685 4,833 5,074 5,699 317 374 426 410 393 300 268 228 237 274 1973—Mar...................... June..................... Sept...................... Dec....................... 3,375 3,375 3,670 4,080 2,874 2,807 2,971 3,314 502 568 698 765 7,149 7,433 7,788 8,556 6,262 6,574 6,849 7,645 458 499 528 484 429 361 411 428 1974— Mar...................... June..................... Sept.*................... 4,507 5,188 5,688 3,629 4,173 4,653 878 1,015 1,035 10,570 11,165 10,722 9,643 10,235 9,802 400 420 420 528 510 550 1 Data on the 2 lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable with those shown for the Canada 1973—Dec......... 16,837 16,818 End of period United King dom 1,491 1,141 /1,648 11,507 19712 17,039 17,037 17,026 17,021 17,014 16,964 16,917 16,892 16,875 16,865 16.838 1975—Jan... Feb. , Short Short term term Deposits invest Deposits invest ments i ments 1 Total preceding date; figures on the second line are compa rable with those shown for the following date. MARCH 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 75 23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Area and country 1972 1973 Dec. Dec. Claims on foreigners 1974 Mar. June 1792 Sept.? 1973 Dec. Dec. Mar. June 1974 Sept.? Europe: Austria.................................................... Belgium-Luxembourg........................... Denmark................................................ Finland................................................... France.................................................... Germany, Fed. Rep. of......................... Greece.................................................... Italy.......... .......................................... Netherlands............................................ Norway.................................................. Portugal.................................................. Spain...................................................... Sweden................................................... Switzerland............................................ Turkey.................................................... United Kingdom................................... Yugoslavia.............................................. Other Western Europe.......................... Eastern Europe...................................... 2 83 7 4 167 164 15 121 109 14 4 81 13 105 4 1,107 7 2 3 3 136 9 7 168 236 40 116 125 9 13 77 48 103 18 932 28 3 31 4 226 17 8 161 238 21 133 114 9 24 68 43 94 26 1,123 31 3 26 12 405 18 9 204 222 28 143 104 8 17 56 52 114 28 1,219 36 6 31 18 485 23 12 192 249 28 150 114 10 20 56 40 105 38 1,405 34 7 78 19 73 29 25 231 195 35 202 84 16 19 157 57 82 48 1,223 12 12 42 17 106 46 44 310 284 51 239 112 18 50 244 71 101 34 1,543 49 15 104 16 153 37 42 413 337 87 330 103 22 112 414 74 90 41 1,835 30 19 79 17 139 27 80 537 345 76 409 126 35 101 420 106 78 46 1,869 41 23 97 15 114 25 91 492 322 69 432 143 32 69 425 97 155 41 1,767 39 20 89 Total................................................ 2,013 2,103 2,371 2,712 3,062 2,561 3,437 4,232 4,571 4,438 Canada....................................................... 215 255 320 294 287 965 1,245 1,526 1,573 1,567 Latin America: Argentina................................................ Bahamas1 .............................................. Brazil.................................................. .. Chile....................................................... Colombia................................................ Cuba....................................................... Mexico.................................................... Panama.................................................. Peru........................................................ Uruguay.................................................. Venezuela............................................... Other L.A. republics............................. Neth. Antilles and Surinam................. Other Latin America............................. 29 391 35 18 7 1 26 18 4 7 21 45 10 4 22 419 64 20 9 * 44 13 15 2 31 51 6 22 18 206 78 6 18 * 72 14 17 3 45 45 5 37 18 307 125 9 22 * 71 19 11 2 36 60 6 59 27 315 160 13 13 * 59 21 15 2 49 63 6 50 79 662 172 34 39 1 181 85 36 4 92 95 13 34 47 633 230 42 40 1 235 120 47 5 134 134 12 214 52 760 409 78 44 1 260 178 65 6 136 172 12 158 52 992 523 64 51 1 263 187 60 5 171 172 16 136 58 516 418 122 49 1 286 195 40 6 189 182 15 159 Total................................................ 615 719 564 745 793 1,527 1,892 2,330 2,692 2,236 32 26 12 7 16 19 224 21 16 5 152 42 34 41 14 14 25 297 37 17 6 178 20 52 24 14 13 31 374 38 9 7 273 39 72 19 13 22 39 374 45 19 7 401 23 72 19 10 38 40 353 66 28 10 430 * 65 33 34 48 31 468 67 59 23 206 11 121 48 37 54 38 888 105 73 28 239 8 184 65 36 51 38 1,212 109 87 31 264 3 119 68 31 67 37 970 124 86 43 313 8 131 61 37 81 53 1,086 123 108 33 309 530 705 855 1,050 1,089 1,035 1,642 2,087 1,860 2,030 South Africa........................................... Zaire........................................................ Other Africa........................................... 32 8 1 62 10 14 19 125 35 22 21 134 12 24 15 156 6 35 17 114 16 52 8 93 9 62 18 127 9 69 20 155 13 85 17 195 16 90 13 202 Total................................................ 104 168 212 206 172 170 216 253 310 321 45 14 118 12 134 22 94 24 128 32 83 23 97 25 110 31 117 39 134 44 59 130 * 156 117 160 107 157 178 29 63 125 1 123 * 142 * 1 1 1 3,536 4,080 4,507 5,188 5,688 6,366 8,556 10,570 11,165 10,772 Asia: China, People’s Republic ol' (China China, Rep. of (Taiwan)....................... Israel....................................................... Japan...................................................... Korea.................................................. Total................................................ Africa: Other countries: Australia................................................ International and regional........................ i Includes Bermuda through Dec. 1972. N ote.— Reported by exporters, importers, and industrial and com- mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. o MARCH 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area Total liabilities End of period Total United Kingdom Other Europe Canada Brazil Mexico Other Latin America Japan Other Asia Africa All other 1970—Sept........................ Dec........................ 2,786 3,102 2,885 2,950 157 146 720 708 620 669 180 183 63 60 586 618 144 140 284 292 73 71 58 64 1971—Mar........................ June....................... Sept........................ / rvan 1 \ 3,177 3,172 2,939 3,159 3,138 2,983 2,982 3,019 3,118 3,068 154 151 135 128 128 688 687 672 705 704 670 677 765 761 717 182 180 178 174 174 63 63 60 60 60 615 625 597 652 653 161 138 133 141 136 302 312 319 327 325 77 75 85 86 86 72 74 75 85 84 1972—M a r ..................... June....................... Sept........................ / H ap 1 \ 3,093 3,300 3,448 3,540 3,631 3,141 3,206 3,187 3,312 3,409 129 108 128 163 191 713 712 695 715 755 737 748 757 775 793 175 188 177 184 187 60 61 63 60 64 665 671 662 658 692 137 161 132 156 134 359 377 390 406 395 81 86 89 87 86 85 93 96 109 111 1973—Mar........................ June........................ Sept........................ Dec......................... 3,818 3,833 4,066 3,946 3,553 3,622 3,788 3,857 156 179 216 290 814 818 839 782 864 819 836 890 165 146 147 145 63 65 73 79 783 813 822 816 124 130 140 128 410 413 471 342 105 108 108 115 125 131 137 142 1974—Mar........................ June....................... Sept.*..................... 3,863 3,549 3,341 4,045 3,965 4,084 368 362 369 756 717 720 927 947 992 194 184 181 81 138 145 796 734 779 % 123 122 118 469 492 529 119 122 118 147 148 133 1 Data on the 2 lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable with those shown for the following date. in reporting coverage. Figures on the first line are comparable with those OPEN MARKET RATES (Per cent per annum) United Kingdom Canada Month Treasury Day-tobills, day 3 months1 money 2 Treasury Prime bank bills, 3 months bills, 3 months France Day-today money Clearing banks* deposit rates Germany, Fed. Rep. of Day-to- Treasury bills, day money3 60-90 days 4 Netherlands Day-to- Treasury day bills, money 5 3 months Switzer land Day-today money Private discount rate 1973....................... 1974....................... 5.43 7.63 5.27 7.69 10.45 12.99 9.40 11.36 8.27 9.85 7.96 9.48 8.92 12.87 6.40 6.06 10.18 8.76 4.07 6.90 4.94 8.21 5.09 1974—Feb.............. Mar............. Apr............. M ay............ June............ July............. Aug............. Sept............. Oct.............. Nov............. Dec............. 6.10 6.24 7.18 8,22 8.66 8.88 8.76 8.70 8.67 7.84 7.29 6.49 6.50 6.93 7.48 8.36 8.52 8.83 8.84 8.56 7.86 7.44 13.63 14.39 13.20 13.31 12.61 13.21 12.80 12.11 11.95 12.07 12.91 11.94 11.95 11.53 11.36 11.23 11.20 11.24 10.91 10.93 10.98 10.99 8.96 11.31 10.00 10.72 10.58 8.70 11.11 10.69 10.81 7.70 7.23 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 12.48 11.88 11.81 12.90 13.59 13.75 13.68 13.41 13.06 12.40 11.88 7.00 7.00 5.63 6.63 5.63 5.63 5.63 5.63 5.63 5.63 5.13 9.13 11.63 5.33 8.36 8.79 9.13 9.05 9.00 8.88 7.20 8.25 6.50 6.00 6.64 7.00 7.00 7.50 7.50 7.42 7.38 6.72 6.69 9.73 9.07 9.86 9.00 8.98 8.57 7.09 5.08 7.81 7.00 6.96 6.00 6.00 6.50 6.50 6.50 7.00 7.00 7.00 7.00 7.00 7.00 1975—Jan.............. Feb .......... 6.65 6.34 6.82 6.88 11.93 10.59 9.88 8.40 9.30 9.50 11.20 9.91 5.13 7.54 4.04 6.60 6.18 7.00 7.00 1 Based on average yield of weekly tenders during month. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. 4 Rate in effect at end of month. 5 Monthly averages based on daily quotations. N ote.—For description and back data, see ‘‘International Finance,’* Section 15 of Supplement to Banking and Monetary Statisticst 1962. NOTES TO TABLES 19a AND 19b ON PAGES A-72 AND A-73, RESPECTIVELY: 1 Cayman Islands included beginning Aug. 1973. 2 Total assets and total liabilities payable in U.S. dollars amounted to $29,201 million and $29,408 million, respectively, on Nov. 30, 1974, and $28,506 million and $28,619 million, respectively, on Dec. 31, 1974. N ote.—Components may not add to totals due to rounding. For a given month, total assets may not equal total liabilities because some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent dollar values. MARCH 1975 □ CENTRAL BANK AND EXCHANGE RATES A 77 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as o f Feb. 28, 1975 Rate as o f Feb. 28, 1975 Country Country Per cent Month effective Per cent Month effective Argentina...................... Austria........................... Belgium......................... Brazil............................. 18.0 6.50 8.25 18.0 Feb. May Jan. Feb. 1972 1974 1975 1972 Italy................... Japan.................. Mexico............... Netherlands....... 8.0 9.0 4.5 6.0 Dec. Dec. June Mar. 1974 1973 1942 1975 Canada.......................... Denmark....................... France........................... Germany, Fed. Rep. of. 8.25 9.0 11.0 5.0 Jan. Jan. Feb. Mar. 1975 1975 1975 1975 Norway.............. Sweden.............. Switzerland........ United Kingdom Venezuela.......... 5.5 7.0 5.0 10.5 5.0 Mar. Aug. Feb. Feb. Oct. 1974 1974 1975 1975 1970 N o t e .—Rates shown are mainly those at which the central bank either discounts or makes advances against eligible commercial paper and/or govt, securities for commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion of its credit operations. Other rates for some of these countries follow: Argentina—3 and 5 per cent for certain rural and industrial paper, de pending on type of transaction; Brazil—8 per cent for secured paper and 4 per cent for certain agricultural paper; Japan—Penalty rates (exceeding the basic rate shown) for borrowings from the central bank in excess of an individual bank’s quota; United Kingdom —The Bank’s minimum lending rate, which is the average rate of discount for Treasury bills established at the most recent tender plus one-half per cent rounded to the nearest one-quarter per cent above. Venezuela—2 per cent for rediscounts of certain agricultural paper, 4 Vi per cent for advances against government bonds, and 5y2 per cent for rediscounts of certain industrial paper and on advances against promissory notes or securities of first-class Venezuelan companies. FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Canada (dollar) Australia (dollar) Austria (schilling) Belgium (franc) 1971..................... 1972..................... 1973..................... 1974..................... 113.61 119.23 141.94 143.89 4.0009 4.3228 5.1649 5.3564 2.0598 2.2716 2.5761 2.5713 99.021 100.937 99.977 102.257 13.508 14.384 16.603 16.442 18.148 19.825 22.536 20.805 28.768 31.364 37.758 38.723 13.338 13.246 12.071 12.460 244.42 250.08 245.10 234.03 .16174 .17132 .17192 .15372 .28779 .32995 .36915 .34302 1974—Feb........... Mar.......... May......... June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... 148.50 148.55 148.41 148.44 148.34 147.99 148.24 144.87 130.92 131.10 131.72 5.0022 5.1605 5.3345 5.5655 5.5085 5.4973 5.3909 5.2975 5.4068 5.5511 5.7176 2.4358 2.5040 2.5686 2.6559 2.6366 2.6378 2.5815 2.5364 2.5939 2.6529 2.7158 102.398 102.877 103.356 103.916 103.481 102.424 102.053 101.384 101.727 101.280 101.192 15.570 16.031 16.496 17.012 16.754 16.858 16.547 16.111 16.592 16.997 17.315 20.187 20.742 20.541 20.540 20.408 20.984 20.912 20.831 21.131 21.384 22.109 36.844 38.211 39.594 40.635 39.603 39.174 38.197 37.580 38.571 39.836 40.816 12.131 12.415 12.711 12.841 12.735 12.759 12.525 12.316 12.416 12.397 12.352 227.49 234.06 238.86 241.37 239.02 238.96 234.56 231.65 233.29 232.52 232.94 .15275 .15687 .15720 .15808 .15379 .15522 .15269 .15103 .14992 .14996 .15179 .34367 .35454 .36001 .35847 .35340 .34372 .33082 .33439 .33404 .33325 .33288 1975—ja n ........... Feb........... 132.95 134.80 5.9477 6.0400 2.8190 2.8753 100.526 99.957 17.816 18.064 22.893 23.390 42.292 42.981 12.300 12.550 236.23 239.58 .15504 .15678 .33370 .34294 Nether lands (guilder) New Zealand (dollar) Norway (krone) Portugal (escudo) Switzer land (franc) United Kingdom (pound) Period Period Malaysia (dollar) Mexico (peso) Denmark (krone) France (franc) Germany (Deutsche mark) South Africa (rand) India (rupee) Spain (peseta) Ireland (pound) Sweden (krona) Italy (lira) Japan (yen) 1971..................... 1972..................... 1973..................... 1974..................... 32.989 35.610 40.988 41.682 8.0056 8.0000 8.0000 8.0000 28.650 31.153 35.977 37.267 113.71 119.35 136.04 140.02 14.205 15.180 17.406 18.119 3.5456 3.7023 4.1080 3.9506 140.29 129.43 143.88 146.98 1.4383 1.5559 1.7178 1.7337 19.592 21.022 22.970 22.563 24.325 26.193 31.700 33.688 244.42 250.08 245.10 234.03 1974—Feb........... Mar.......... Apr........... June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec.......... 40.489 41.152 41.959 42.155 41.586 41.471 42.780 41.443 41.560 43.075 42.431 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 35.349 36.354 37.416 38.509 37.757 38.043 37.419 36.870 37.639 38.438 39.331 140.31 143.40 145.12 146.07 145.29 145.15 143.73 139.64 129.95 130.42 130.56 17.351 17.734 18.170 18.771 18.410 18.519 18.246 17.993 18.165 18.404 18.873 3.8567 3.9519 4.0232 4.1036 4.0160 3.9886 3.9277 3.8565 3.9246 3.9911 4.0400 148.76 148.88 148.85 148.78 148.86 149.73 146.83 142.69 142.75 143.88 144.70 1.6933 1.6927 1.7080 1.7409 1.7450 1.7525 1.7466 1.7339 1.7422 1.7522 1.7716 21.373 21.915 22.730 23.388 22.885 22.861 22.597 22.333 22.683 23.175 23.897 31.494 32.490 33.044 34.288 33.449 33.739 33.509 33.371 34.528 36.384 38.442 227.49 234.06 238.86 241.37 239.02 238.96 234.56 231.65 233.29 232.52 232.94 1975—Jan........... Feb........... 43.359 44.136 8.0000 8.0000 40.715 41.582 131.72 133.30 19.579 19.977 4.0855 4.1139 145.05 147.16 1.7800 1.7784 24.750 25.149 39.571 40.450 236.23 239.58 N o t e .—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi nance,” Section 15 of Supplement to Banking and Monetary Statistics , 1962. A 78 GOLD RESERVES □ MARCH 1975 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions o f dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) 1970. 1971. 1972. 1973. 1974—Jan... Feb.., M ar.. Apr.. May. June. July.. Aug.. Sept.. Oct... N ov.. Dec.. Esti mated total world1 Intl. Mone tary Fund United States Esti mated rest of world Algeria Argen tina 41,275 41,160 44,890 49,850 End of period 4,339 4,732 5,830 6.478 11,072 10,206 10,487 11.652 25,865 26,220 28,575 31,720 191 192 208 231 140 90 152 169 239 259 281 311 714 729 792 881 1,470 1,544 1,638 1.781 791 792 834 927 82 80 87 97 64 64 69 77 85 85 92 103 6.478 6.478 6.478 6.478 6.478 6.478 6.478 6.478 6.478 6.478 6.478 6.478 11.652 11.652 11.652 31,710 11.652 11.652 11.652 31,705 11.652 11.652 11.652 31,700 11.652 11.652 11.652 ?3i j665 231 231 231 231 231 231 231 231 231 231 231 231 169 169 169 169 169 169 169 169 169 169 169 312 312 312 312 312 312 312 312 312 312 312 312 882 882 882 882 882 882 882 882 882 882 882 882 1.781 1.781 1.781 1.781 1.781 1.781 1.781 1.781 1.781 1.781 1.781 1.781 927 927 927 927 927 927 927 927 927 927 927 927 97 97 97 97 97 97 97 97 97 97 97 97 77 77 77 77 77 77 76 76 76 76 76 76 103 103 103 103 103 103 103 103 103 6.478 11,635 231 312 882 1.781 927 Ger many, Fed. Rep. of Greece Japan Kuwait 49,840 49,835 49,830 '*49,195 1975—Jan.?. End of period France India Iran Iraq Aus tralia Italy Aus tria Bel gium Canada Leb anon China, Rep. of (Taiwan) Den mark Egypt 76 Libya Mexi co Nether lands 1970.......................... 1971.......................... 1972.......................... 1973.......................... 3,532 3,523 3,826 4,261 3,980 4,077 4,459 4,966 117 98 133 148 243 243 264 293 131 131 142 159 144 144 156 173 2,887 2,884 3,130 3,483 532 679 801 891 86 87 94 120 288 322 350 388 85 85 93 103 176 184 188 196 1,787 1,909 2,059 2,294 1974—Jan................. Feb................ Mar............... Apr................ Mav............... June.............. July............... Aug............... Sept............... Oct................. Nov......... Dec................ 4,262 4,262 4,262 4,262 4,262 4,262 4,262 4,262 4,262 4,262 4,262 4,262 4,966 4,966 4,966 4,966 4,966 4,966 4,966 4,966 4,966 4,966 4,966 4,966 148 148 149 149 149 150 150 150 150 150 150 150 293 293 293 293 293 293 293 293 293 293 293 159 159 159 159 159 159 158 158 158 158 158 158 173 173 173 173 173 173 173 173 173 173 173 173 3,483 3,483 3,483 3,483 3,483 3,483 3,483 3,483 3,483 3,483 3,483 3,483 891 891 891 891 891 891 891 891 891 891 891 891 113 120 123 118 142 130 130 130 130 138 138 148 389 389 389 389 389 389 389 389 389 389 389 389 103 103 103 103 103 103 105 107 103 103 103 103 195 194 156 155 154 154 154 154 154 154 2,294 2,294 2,294 2,294 2,294 2,294 2,294 2,294 2,294 2,294 2,294 2,294 1975—Jan ? ............ 4,262 4,966 3,483 891 140 389 103 Thai land Turkey United King dom End of period Paki stan 158 Portu gal Saudi Arabia South Africa Spain Sweden Switzer land Uru guay 2,294 Vene zuela Bank for Intl. Settle ments2 1970.......................... 1971.......................... 1972.......................... 1973.......................... 54 55 60 67 902 921 1,021 1,163 119 108 117 129 666 410 681 802 498 498 541 602 200 200 217 244 2,732 2,909 3,158 3,513 92 82. 89 99 126 130 136 151 1,349 775 800 886 162 148 133 148 384 391 425 472 -2 8 2 310 218 235 1974—Jan................. Feb................ Mar............... Apr................ May.............. June.............. July............... Aug............... Sept............... Oct................ Nov............... Dec .. 67 67 67 67 67 67 67 67 67 67 67 67 1,167 1,171 1,176 1,180 1,180 1,180 1,180 1,180 1,180 1,180 1,180 1,180 129 129 129 129 129 129 129 129 129 129 129 129 793 783 780 780 777 781 788 778 778 786 774 771 602 602 602 602 602 602 602 602 602 602 602 244 244 244 244 244 244 244 244 244 244 244 244 3,513 3,513 3,513 3,513 3,513 3,513 3,513 3,513 3,513 3,513 3,513 3,513 99 99 99 99 99 99 99 99 99 99 99 99 151 151 151 151 151 151 151 151 151 151 151 151 886 886 886 886 886 886 886 886 886 886 886 886 148 148 148 148 148 148 148 148 148 148 148 472 472 472 472 472 472 472 472 472 472 472 472 271 277 274 271 247 259 259 255 259 271 251 250 1975_jan ? 67 244 3,513 99 472 265 764 1 Includes reported or estimated gold holdings of international and regional organizations, central banks and govts, of countries listed in this table, and also of a number not shown separately here, and gold to be distributed by the Tripartite Commission for the Restitution of Monetary Gold; excludes holdings of the U.S.S.R., other Eastern European coun tries, and China Mainland. The figures included for the Bank for International Settlements are the Bank’s gold assets net of gold deposit liabilities. This procedure avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual countries. 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. MARCH 1975 □ BANK RESERVES AND RELATED ITEMS, 1974 \ 79 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 inks Reserves Re quired Borrowings Excess1 Total 36,419 35,053 34,790 35,771 36,325 36,259 37,161 36,851 36,885 36,705 36,579 36,602 236 189 176 158 194 131 177 178 191 91 258 339 1,044 1,186 1,352 1,714 2,580 3,000 3,308 3,351 3,287 1,793 1,285 703 Sea sonal New York City Excess 18 17 32 50 104 130 149 165 139 117 67 32 65 51 21 19 -2 0 -2 6 45 -5 8 133 -4 9 -8 132 City o f Chicago Borrow Excess ings 135 87 113 114 772 1,303 1,457 1,464 1,662 502 257 80 -4 4 -1 9 -61 69 29 -8 19 6 20 -1 8 38 5 Borrow Excess ings 17 18 65 41 20 51 70 23 17 36 14 18 -8 -5 1 43 -5 8 -4 26 -1 2 78 -7 7 36 90 39 141 44 Borrow ings >rrowngs 549 635 689 987 939 799 848 860 792 569 566 323 343 446 485 572 849 847 933 -004 816 686 448 282 81 676 363 25 -9 6 27 -1 1 0 15 599 174 681 655 733 330 287 262 344 467 494 585 711 780 504 420 408 458 34,958 472 1,039 35 106 35,268 36,210 37,374 36,693 35,880 388 86 328 -8 3 259 1,210 776 988 1,182 1,220 31 19 20 13 17 80 2 59 -114 104 140 271 45 183 20 -6 -4 7 16 -1 2 -5 7 35,351 35,054 35,274 34,645 124 294 114 206 998 1,153 1,376 1,251 18 15 20 16 -123 144 -3 7 70 92 257 14 -2 3 -6 3 -1 7 56 13 34 -3 4 -4 2 -2 4 34,515 34,632 35,129 34,605 118 116 80 169 912 983 1,483 1,713 19 19 35 43 -81 41 -41 10 123 11 333 31 13 -8 -3 40 11 66 15 21 1 -8 2 -3 6 -1 6 364 507 679 1,061 414 399 456 600 35,217 34,940 35,927 35,916 226 62 329 139 1,503 1,194 1,816 1,939 44 41 46 52 77 -7 3 78 -1 2 34 108 107 69 -9 4 -1 9 70 189 53 101 4 -2 7 6 37 -1 2 710 663 1,093 1,233 570 370 515 633 36,668 36,201 36,470 36,487 36,170 177 135 176 129 179 2,157 1,616 1,977 3,090 3,606 74 82 94 113 114 62 -5 7 83 -5 5 32 176 134 506 993 1,449 -4 7 41 -3 9 57 -1 7 17 14 37 7 9 -3 4 10 -6 3 -9 -1 0 1,140 822 731 1,131 1,081 824 646 703 959 ,067 36,054 35,658 36,461 36,437 225 131 247 99 3,054 2,729 3,223 2,788 133 136 140 133 -3 7 26 31 -8 1,210 1,296 1,385 1,221 2 21 -1 7 41 15 40 139 17 61 -6 7 44 -7 6 846 629 984 690 983 764 715 860 36,905 36,590 37,840 37,302 37,020 369 278 -1 6 115 184 3,435 2,640 3,175 3,641 3,690 127 136 150 156 163 9 90 -7 5 17 33 1,412 1,339 1,536 1,538 1,431 111 1 26 -41 1 137 52 15 80 38 72 84 -7 4 81 13 878 432 786 1,108 1,086 ,008 817 838 915 ,135 36,692 36,823 36,947 36,920 228 113 209 146 3,089 3,041 3,437 3,533 174 160 167 161 -7 20 -3 2 105 1,420 1,431 1,447 1,457 9 8 -2 31 24 24 23 21 54 -3 9 130 -9 8 644 716 961 951 ,001 870 ,006 ,104 36,918 36,628 37,004 36,872 321 109 82 74 3,906 3,084 2,921 3,531 152 132 134 141 -6 6 127 -150 80 1,729 1,567 1,517 1,782 40 -3 5 15 12 19 20 16 10 171 -110 90 -9 3 1,125 766 740 871 ,033 731 648 868 37,077 36,656 37,088 36,615 36,576 456 -5 5 327 -159 243 3,218 2,245 1,744 1,322 1,638 143 132 121 108 105 67 -2 6 41 -101 109 1,756 1,245 219 148 96 9 -2 0 27 -1 2 -9 17 10 135 2 11 222 -127 99 -122 42 532 336 784 509 730 913 654 606 663 801 36,672 36,335 36,785 36,459 323 144 27 310 1,125 1,097 1,367 1,479 78 70 64 63 54 -15 -1 6 69 68 188 465 243 32 -2 9 8 27 30 29 105 40 -8 7 87 425 480 495 814 632 399 378 422 36,678 36,452 36,545 36,416 283 -159 217 429 1,070 648 818 662 51 35 31 29 141 -173 59 137 226 73 60 72 4 -3 6 23 52 26 54 -1 6 -5 0 -3 9 89 450 281 417 333 394 268 287 257 972, F.R. Banks have been allowed to waive iencies for a transition period. Deficiencies al$67 million; Q2, $58 million. Transition period ;r, 1974. , designation of banks as reserve city banks purposes has been based on size o f bank (net i than $400 million), as described in the Bulletin tegories shown here as “Large” and “All other” 30 parallel the previous “Reserve city” and “Country” catej (hence the series are continuous over time). N o t e .—Monthly and weekly data are averages of d the month or week, respectively. Borrowings at F.R. Banks: Based on closing figures. Effective Apr. 19, 1973, the Board’s Regulation A, w ing by Federal Reserve Banks, was revised to assist smal to meet the seasonal borrowing needs of their commun tively ithin Lend- A 80 BANK RESERVES AND RELATED ITEMS, 1974 □ MARCH 1975 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (Averages of daily figures; in millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period, or week ending U.S. Govt, securities1 Gold stock Special Drawing Rights certificate account Treas ury cur rency out stand ing Held under repurchase agreement Loans Float Other F.R. assets Total Total Bought out right 80,793 80,801 80,686 81,567 83,434 82,812 84,313 84,493 84,384 83,735 84,052 86,679 80,608 80,551 80,184 80,873 82,037 81,859 83,496 84,221 84,049 83,303 83,395 85,202 185 250 502 694 1,397 953 817 272 335 432 657 1,477 1,044 1,186 1,352 1,714 2,580 3,000 3,308 3,351 3,287 1,793 1,285 703 3,385 2,300 1,816 2,295 2,025 2,114 2,267 1,983 2,239 2,083 2,409 2,734 1,258 1,117 960 1,160 1,093 1,106 1,343 1,258 1,349 2,984 3,171 3,129 86,568 85,493 84,943 86,907 89,405 89,254 91,554 91,367 91,617 90,971 91,302 93,967 1973—Dec. 26....................... 80,087 79,242 845 1,039 4,684 1,229 87,260 11,567 400 8,672 1974—Jan. 2....................... 9....................... 16....................... 23....................... 30....................... 80,851 80,880 80,762 80,309 81,088 80,238 80,671 80,690 80,202 80,713 613 209 72 107 375 1,210 776 988 1,182 1,220 4,073 4,399 3,639 3,208 2,149 1,204 1,232 1,211 1,271 1,329 87,499 87,397 86,670 86,036 85,876 11,567 11,567 11,567 11,567 11,567 400 400 400 400 400 8,682 8,683 8,691 8,723 8,726 Feb. 6....................... 13....................... 20....................... 27....................... 80,407 80,678 81,535 80,577 80,213 80,451 80,953 80,577 194 227 582 998 1,153 1,376 1,251 2,185 2,268 2,314 2,409 1,362 1,462 869 828 85,037 85,645 86,207 85,136 11,567 11,567 11,567 11,567 400 400 400 400 8,731 8,747 8,750 8,756 Mar. 6....................... 13....................... 20....................... 27....................... 80,203 80,167 80,813 80,920 80,203 79,767 80,303 80,302 400 510 618 912 983 1,483 1,713 2,010 2,074 1,889 1,766 878 938 961 1,003 84,072 84,246 85,262 85,546 11,567 11,567 11,567 11,567 400 400 400 400 8,758 8,762 8,768 8,772 Apr. 3....................... 10............... .. 17....................... 24....................... 81,330 80,675 81,606 81,689 80,483 80,485 80,651 80,996 847 190 955 693 1,503 1,194 1,816 1,939 1,801 2,039 2,646 2,503 1,060 1,104 1,134 1,191 85,923 85,111 87,332 87,526 11,567 11,567 11,567 11,567 400 400 400 400 8,789 8,800 8,803 8,812 May 1....................... 8....................... 15....................... 22....................... 29....................... 82,731 83,190 83,626 83,679 83,162 81,637 81,868 81,951 81,756 82,418 1,094 1,322 1,675 1,923 744 2,157 1,616 1,977 3,090 3,606 1,919 1,807 1,908 2,238 1,905 1,292 1,336 1,248 879 900 88,365 88,238 89,065 90,227 89,737 11,567 11,567 11,567 11,567 11,567 400 400 400 400 400 8,822 8,827 8,830 8,836 8,856 June 5....................... 12....................... 19....................... 26....................... 83,075 81,267 83,017 83,815 82,128 80,814 82,283 82,049 947 453 734 1,766 3,054 2,729 3,223 2,788 2,184 2,007 2,162 2,055 1,013 1,036 1,095 1,160 89,554 87,184 89,720 90,068 11,567 11,567 11,567 11,567 400 400 400 400 8,859 8,862 8,880 8,891 July 3....................... 10....................... 17....................... 24....................... 31....................... 83,933 83,990 84,718 84,429 84,112 82,663 83,007 83,614 84,153 83,531 1,270 983 1,104 276 581 3,435 2,640 3,175 3,641 3,690 2,190 2,951 2,401 2,027 1,807 1,253 1,259 1,321 1,397 1,434 91,140 91,157 92,015 91,722 91,386 11,567 11,567 11,567 11,567 11,567 400 400 400 400 400 8,899 8,898 8,903 8,907 8,913 Aug. 7....................... 14....................... 21....................... 28....................... 83,648 83,486 85,394 85,176 83,648 83,486 84,720 84,646 674 530 3,089 3,041 3,437 3,533 2,100 2,018 1,940 1,845 1,461 1,524 914 1,145 90,516 90,286 91,998 92,086 11,567 11,567 11,567 11,567 400 400 400 400 8,938 8 953 8,955 8,961 Sept. 4....................... 11....................... 18....................... 25....................... 85,304 83,126 83,791 84,982 85,061 83,126 83,222 84,616 243 3,906 3,084 2,921 3,531 '1,779 2,717 2,535 2,171 1,237 1,290 1,323 1,413 '92,540 90,486 90,876 92,486 11,567 11,567 11,567 11,567 400 400 400 400 8,973 8,971 8,974 9,016 Oct. 2....................... 9....................... 16....................... 23....................... 30....................... 85,380 84,041 83,367 83,472 83,581 84,904 83,480 82,598 83,472 83,218 476 561 769 3,218 2,245 1,744 1,322 1,638 1,898 2,137 1,875 2,553 1,895 1,646 2,047 3,288 3,396 3,386 92,695 91,006 90,716 90,958 90,767 11,567 11,567 11,567 11,567 11,567 400 400 400 400 400 9,039 9,027 9,036 9,042 9,054 6....................... 13....................... 20....................... 27....................... 83,662 82,421 83,959 85,212 83,217 82,421 83,480 84,076 479 1,136 1,125 1,097 1,367 1,479 2,086 2,466 3,018 2,060 3,466 3,484 2,967 2,917 90,658 89,689 91,667 92,159 11,567 11,567 11,567 11,567 400 400 400 400 9,080 9,099 9,118 9,128 4....................... 11....................... 18....................... 25....................... 85,559 85,445 85,842 88,242 83,967 84,925 85,157 85,761 1,592 520 685 2,481 1,070 648 818 662 2,768 2,545 2,569 2,285 3,113 3,053 3,047 3,141 93,186 92,238 92,859 95,124 11,567 11,603 11,652 11,652 400 400 400 400 9,168 9,163 9,178 9,194 1974—Jan................................ Feb............................... Mar.............................. Apr............................... M ay............................. June............................. July.............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec............................... Nov. Dec. 569 366 ........363*’ 445 1 Includes Federal agency issues. 2 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in full with Federal Reserve Banks in connection with voluntary participa tion by nonmember institutions in the Federal Reserve System’s program of credit restraint. 11,567 11,567 11,567 11,567 11.567 11,567 11,567 11,567 11,567 11,567 11,567 11,630 400 400 400 400 400 400 400 400 400 400 400 400 8,705 8,747 8,767 8,807 8,838 8,877 8,905 8,951 8,992 9,041 9,113 9,179 As of Dec. 12, 1974, the amount of voluntary nonmember and foreign agency and branch deposits at F.R. Banks that are associated with marginal reserves are no longer reported. However, deposits voluntarily held by agencies and branches of foreign banks operating in the United States as reserves and Euro-dollar liabilities are reported. Notes continued on opposite page. MARCH 1975 □ BANK RESERVES AND RELATED ITEMS, 1974 A 81 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (Averages of daily figures; in millions of dollars) Factors absorbing reserve funds Deposits, other than member bank reserves, with F.R. Banks Member bank reserves Other2 Other F.R. lia bilities and capital With F.R. Banks Cur rency and coin3 Total* 713 682 699 702 699 691 773 831 766 869 770 874 2,904 2,932 2,998 2,985 3,168 3,187 3,216 3,240 3,345 3,260 3,149 3,266 29,396 28,574 28,450 29,469 29,861 29,672 30,514 30,264 30,156 29,985 29,898 29,767 7,192 6,601 6,450 6,402 6,600 6,668 6,824 6,765 6,920 6,811 6,939 7,174 36,655 35,242 34,966 35,929 36,519 36,390 37,338 37,029 37,076 36,796 36,837 36,941 694 3,047 28,838 6,508 35,430 978 699 706 709 646 2,977 2,776 2,850 2,959 3,059 28,808 29,499 29,719 29,364 28,981 6,781 6,730 7,916 7,179 7,091 35,656 36,296 37,702 36,610 36,139 689 664 682 690 2,947 2,806 2,950 3,031 28,424 28,360 29,102 28,445 6,984 6,921 6,219 6,339 35,475 35,348 35,388 34,851 328 277 300 307 694 714 731 669 2,942 2,842 2,994 3,093 27,994 27,826 29,025 28,448 6,572 6,855 6,117 6,259 34,633 34,748 35,209 34,774 ............................................................... 13 ............................................................... 20 ............................................................... 27 1,889 1,354 1,299 1,666 372 300 439 269 704 725 695 703 3,105 2,854 3,010 2,997 28,904 28,311 29,741 30,074 6,481 6,633 6,457 5,923 35,443 35,002 36,256 36,055 ............................................................... 10 ............................................................... 17 301 299 285 278 273 2,460 2,959 2,723 3,028 3,224 343 294 277 343 287 672 662 715 728 684 3,132 2,961 3,122 3,218 3,310 30,198 29,393 29,743 30,477 29,719 6,589 6,885 6,845 6,081 6,572 36,845 36,336 36,646 36,616 36,349 ............................................................... 15 ............................................................... 22 73,344 73,846 73,938 73,689 302 283 292 298 2,804 931 1,511 2,659 399 309 992 343 694 674 674 687 3,275 3,041 3,140 3,265 29,562 28,929 30,019 29,985 6,659 6,802 6,631 6,493 36,279 35,789 36,708 36,536 74,112 74,876 74,849 74,441 74,081 287 275 266 270 283 2,781 2,957 2,366 2,721 3,214 350 289 303 283 293 777 753 786 757 785 3,240 3,050 3,193 3,271 3,390 30,459 29,820 31,122 30,853 30,218 6,815 7,048 6,702 6,564 6,986 37,274 36,868 37,824 37,417 37,204 74,383 74,916 74,872 74,613 282 274 279 281 2,730 1,875 2,447 3,191 274 269 428 307 799 875 833 779 3,053 3,107 3,262 3,390 29,900 29,890 30,799 30,452 7,020 7,046 6,357 6,614 36,920 36,936 37,156 37,066 74,979 75,399 75,302 74,890 302 297 298 304 3,107 1,858 1,438 3,148 371 362 525 612 802 732 751 904 3,502 3,126 3,255 3,450 30,416 29,649 30,249 30,161 6,823 7,088 6,837 6,785 37,239 36,737 37,086 36,946 74,839 75,327 75,944 75,848 75,624 315 314 318 318 313 3,274 2,698 838 1,200 1,341 356 288 271 271 312 960 824 794 843 800 3,493 3,107 3,180 3,285 3,410 30,464 29,441 30,376 30,202 29,987 7,069 7,160 7,039 6,254 6,832 37,533 36,601 37,415 36,456 36,819 76,060 77,025 77,209 77,328 295 300 300 307 1,049 159 649 1,346 302 302 512 303 811 703 781 788 3,312 3,038 3,060 3,174 29,875 29,227 30,240 30,007 7,120 7,252 6,572 6,762 36,995 36,479 36,812 36,769 77,952 78,496 78,926 79,368 316 266 182 180 1,464 1,303 926 2,471 453 320 407 345 1,024 893 821 752 3,250 3,090 3,213 3,399 29,861 29,035 29,615 29,855 7,100 7,258 7,147 6,990 36,961 36,293 36,762 36,845 Cur rency in cir cula tion Treas ury cash hold ings 70,962 70,411 71,081 72,176 72,876 73,749 74,556 74,709 75,098 75,654 77,029 78,951 349 342 334 308 286 293 275 283 303 315 302 220 2,488 2,972 1,803 1,712 3,000 2,015 2,795 2,633 2,451 1,601 864 1,741 427 293 311 328 320 491 296 326 456 294 370 357 72,233 328 2,228 531 72,470 71,855 71,214 70,581 69,931 331 329 350 363 359 2,254 2,344 2,170 2,351 3,099 331 544 318 398 494 69,935 70,500 70,686 70,438 349 343 334 344 3,084 3,431 2,844 2,651 306 256 327 260 70,577 71,193 71,286 71,117 334 330 337 335 1,927 1,794 1,324 2,317 71,366 72,008 72,616 72,308 340 326 303 288 72,048 72,463 72,997 72,959 73,062 Treas ury For eign 3 Based on close-of-business figures for reserve period 2 weeks previous to report date. 4 Beginning Nov. 9, 1972, F.R. Banks have been allowed to waive penalties in reserve deficiencies in a transition period. Deficiencies al- Period, or week ending ............................................... 1974—Jan. ...........................................................Feb. ............................................................... 26 ............................................................... 17 lowed in 1974 were: Ql, $67 million; Q2, $58 million. Transition period ended after second quarter, 1974. For other notes see opposite page, A 82 LOAN SALES BY BANKS □ MARCH 1975 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To select related institutions1 To all others except banks By type of loan Date Total Commercial and industrial Real estate By type of loan All other Total Commercial and industrial All other 1974—Jan. 2. 9. 16. 23. 30. 4.460 4,487 4,503 4.301 4,439 2,675 2,700 2,691 2,508 2,623 1,785 1,787 1,812 1,793 1,816 794 790 791 790 810 327 325 332 340 343 1.467 1,465 1,459 1,450 1.467 Feb. 6. 13. 20. 27. 4,605 4,729 4,933 4,992 2,638 2,687 2,673 2,748 1,967 2,042 2,260 2.244 780 389 342 414 341 333 336 337 1,439 1,056 1,006 1,077 Mar. 6. 13. 20. 27. 4,939 4,935 4,840 4,904 2,754 2.768 2,787 2.834 2,185 2,167 2,053 2,070 414 420 419 454 339 339 340 369 1,075 1 ,081 1,079 1 ,085 Apr. 3. 10. 17. 24. 5,114 5,063 5,043 5,386 2,893 2,911 2.874 3,080 2,221 2,152 2,169 2,306 440 443 448 482 358 356 360 393 1,082 1.087 1.088 1,089 May 1. 8. 15. 22. 29. 5,399 5,536 5,442 5,567 5,653 3,020 3,069 3,039 3,084 3,112 2,379 2,467 2,403 2,483 2.541 471 475 457 455 442 379 375 358 357 359 1,092 1,100 1,099 1,098 1,083 June 5. 12. 19. 26. 5,648 5,493 5,380 5,372 2,986 2,999 2,888 2,943 2,662 2,494 2,492 2,429 469 446 450 429 384 374 391 382 1,085 1,072 1,059 1,047 July 3. 10. 17. 24. 31. 5.460 5,491 5.501 5,572 5,411 2,947 2,949 2,973 3,050 2,905 2,513 2.542 2,528 2,522 2,506 479 436 420 428 481 439 396 381 389 440 1.040 1.040 1.039 1.039 1.041 Aug. 7. 14. 21. 28. 282 5,419 5.502 5,438 5,396 5.302 2,846 2,882 2.834 3,033 2.875 2,573 2,620 2,604 2,363 2,241 422 413 432 472 401 408 434 491 1,021 1,005 998 981 Sept. 4. 11. 18. 25. 5,336 187 5,348 5,248 5,282 2.875 2,902 2,826 2,830 185 178 178 2.274 2,261 2.244 2.274 Oct. 2. 9. 16. 23. 30. 5,277 5,321 5,181 5,157 5,192 2,867 2,845 2,806 2,780 2.768 179 181 178 175 178 2,231 2,295 2,197 2,202 2,246 Nov. 6. 13. 20. 27. 5.168 5.169 5,077 4,920 2,756 2,786 2,779 2,740 182 182 186 186 2,230 2,201 2,112 1,994 Dec. 4. 11. 18. 25. 4,775 4,765 4,837 4,901 2,568 2,592 2,678 2,821 178 182 182 180 2,029 1,991 1,977 1,900 1 To bank’s own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank’s holding com pany (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. 2 Change in series. A comparison of the old and new data for Aug. 28, 1974, appears in the “Announcements” section of the Oct. 1974 B u l l e t i n . However, the summary of changes shown there should be revised to reflect the 186 revision of data since Aug. 28; “Change in loans sold by banks remaining in panel” should be —$132 million for the total, —$200 million for commercial and industrial, and +$68 million for real estate and all other. The $132 million decline reflects the elimination of a previous misclassification of $199 million in commercial and indus trial loans sold. MARCH 1975 □ BUSINESS FINANCE A 83 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions o f dollars) 1972 Industry 1971 1972 1973 1974 1973 III IV IV Ii Total (170 corps.): Sales........................................ Total revenue........................ Profits before taxes............. Profits after taxes................. Memo: PAT unadj.2........ Dividends.............................. . 334,957 371,946 442,254 339,134 376,604 448,795 35,771 41,164 53,833 19,146 21,753 28,772 18,020 21,233 28,804 10,104 10,538 11,513 89,550 100,194 102,932 109,967 108,370 120,985 126,889 142,950 144,775 90,803 101,078 104,181 111,526 109,984 123,108 128,788 145,101 147,109 8,978 12,003 12,672 14,009 12,411 14,742 16,847 18,191 17,863 7,491 7,739 4,936 6,762 5,931 7,750 6,769 9,280 8,427 6,732 4,490 5,894 7,626 6,754 7,930 7,385 9,210 8,487 2,767 2,906 3,393 2,525 2,877 2,715 2,639 2,928 3,075 Nondurable goods industries (86 corps.):3 Sales.......................................... Total revenue....................... . Profits before taxes............. . Profits after taxes.................. Memo: PAT unadj.2........ Dividends.............................. . 160,973 176,329 210,118 163,448 178,915 213,904 19,900 21,799 30,200 10,490 11,154 15,538 10,085 10,859 15,421 5,664 6,103 5,780 43,865 44,689 5,278 2,852 2,574 1,427 46,815 47,023 6,479 2,946 3,035 1,476 47,519 48,259 6,473 3,390 3,348 1,480 50,223 51,191 7,129 3,667 3,597 1,462 53,168 54,098 7,610 4,018 3,957 1,527 59,207 60,357 8,988 4,463 4,517 1,633 68,860 70,142 11,880 5,056 4,957 1,625 77,066 78,528 11,972 5,728 5,677 1,645 80,264 81,880 12,595 5,464 5,389 1,722 Durable goods industries (84 corps.):4 Sales.......................................... Total revenue......................... Profits before taxes............... Profits after taxes................... Memo: PAT unadj.2........ Dividends................................ 173,985 195,618 232,136 175,686 197,690 234,891 15,871 19,365 23,633 8,656 10,599 13,234 7,935 10,374 13,383 4,758 5,410 4,440 45,685 46,115 3,697 2,083 1,916 1,097 53,379 54,055 5,524 2,984 2,859 1,401 55,413 55,922 6,199 3,379 3,406 1,159 59,744 60,335 6,880 3,824 3,788 1,253 55,202 55,886 4,801 2,744 2,775 1,240 61,778 62,751 5,754 3,287 3,413 1,760 58,029 58,646 4,967 2,638 2,669 1,281 65,884 66,573 6,219 3,552 3,533 1,283 64,511 65,229 5,268 2,963 3,098 1,353 Selected industries: Food and kindred prod. (28 corps.): Sales.......................................... Total revenue......................... Profits before taxes............... Profits after taxes................... Memo: PAT unadj.2........ D ividends................................ 34,584 35,090 3,372 1,714 1,644 862 37,624 38,091 3,573 1,845 1,805 893 42,628 43,198 3,957 2,063 2,074 935 9,531 9,665 940 486 492 223 10,039 10,115 960 490 452 227 9,561 9,711 897 474 453 230 10,183 10,348 962 499 501 230 11,014 11,201 1,031 r546 r546 236 11,871 11,938 1,067 543 573 240 11,885 12,110 1,046 529 533 243 12,729 12,996 1,190 607 610 248 13,523 13,937 1,289 645 646 253 Chemical and allied prod. (22 corps.): Sales.......................................... T otal......................................... Profits before taxes................ Profits after taxes................... Memo: PAT unadj.2........ D ividends................................ 33,005 33,388 4,123 2,290 2,167 1,332 36,638 37,053 4,853 2,672 2,671 1,395 43,208 43,784 6,266 3,504 3,469 1,496 9,099 9,196 1,216 683 684 340 9,593 9,723 1,280 669 712 378 10,153 10,264 1,487 835 834 346 10,693 10,849 1,606 886 884 359 10,828 10,968 1,599 901 871 374 11,534 11,704 1,572 883 880 417 12,507 12,664 1,856 1,044 1,031 383 13,892 14,066 2,293 1,247 1,245 405 14,606 14,778 2,194 1,223 1,180 422 Petroleum refining (15 corps.): Sales.......................................... Total revenue.......................... Profits before taxes................ Profits after taxes................... Memo: PAT unadj.2........ Dividends................................ 68,534 69,903 10,835 5,624 5,519 2,952 74,662 76,133 11,461 5,562 5,325 2,992 93,505 95,722 17,494 8,550 8,505 3,147 18,298 18,837 2,628 1,398 1,119 741 19,925 19,845 3,717 1,509 1,578 746 20,477 20,892 3,514 1,760 1,737 777 21,689 22,258 3,884 1,899 l,f “ 748 23,586 23,988 4,371 2,230 2,192 789 27,752 28,584 5,724 2,662 2, r ~ 832 36,196 37,006 8,296 3,098 3,011 864 41,339 42,237 7,564 3,349 3,304 853 42,726 43,638 8,339 3,181 3,132 899 Primary metals and prod. (23 corps.): Sales.......................................... Total revenue.......................... Profits before taxes............... Profits after taxes................... Memo: PAT unadj.2........ D ividends................................ 31,441 31,808 1,517 969 561 739 34,359 34,797 1,969 1,195 1,109 653 42,400 43,104 3,221 1,966 2,039 789 8,525 9,099 9,253 589 302 256 168 9,635 9,733 618 383 397 200 10,784 10,891 885 542 538 178 10,602 10,764 799 480 496 184 11,379 11,715 919 561 608 227 11,( 13,976 413 274 128 162 1,586 927 942 209 14,285 14,504 1,796 1,033 1,137 238 Machinery (27 corps.): Sales.......................................... Total revenue.......................... Profits before taxes............... Profits after taxes................... Memo: PAT unadj.2........ Dividends................................ 49,206 49,846 5,277 2,884 2,560 1,450 55,615 56,348 6,358 3,522 3,388 1,497 65,041 65,925 7,669 4,236 4,208 1,606 13,862 14,050 1,583 870 865 375 15,018 15,203 1,810 1,017 902 375 14,828 14,997 1,705 933 931 389 16,035 16,241 1,880 1,034 1,020 401 16,306 16,519 1,936 1.069 1.070 407 17,871 18,168 2,149 1,200 1,188 410 16,830 17,612 1,829 1,006 996 441 18,836 19,023 2,074 1,149 1,137 441 18,853 19,075 1,943 1,076 1,096 475 Motor vehicles and equipment (9 corps.): Sales.......................................... Total revenue.......................... Profits before taxes............... Profits after taxes................... Memo: PAT unadj.2........ Dividends................................ 61,481 61,804 5,648 2,948 2,952 1,433 70,653 71,139 6,955 3,626 3,640 1,762 83,016 83,671 7,429 3,992 4,078 2,063 14,703 14,735 628 343 337 365 19,725 19,946 2,019 1,060 1,091 599 21,616 21,752 2,716 1,405 1,429 369 22,256 22,415 2,704 1,446 1,436 473 17,959 18,142 729 431 450 404 21,186 21,362 1,280 709 763 817 18,467 18,597 636 369 361 380 20,979 21,146 1,115 657 648 382 19,443 19,593 253 134 147 386 8,629 1 Selected items have been revised so that figures for quarters now add to annual totals. 2 Profits after taxes (PAT) as reported by the individual companies. In contrast to other profits data in the series, these figures reflect company variations in accounting treatment of special charges and credits. 3 Includes 21 corporations in groups not shown separately. 4 Includes 25 corporations in groups not shown separately. N ote—D ata are obtained from published reports o f companies and 12,045 1,232 589 607 221 14,171 reports made to the Securities and Exchange Commission. Sales are net of returns, allowances, and discounts, and exclude excise taxes paid di rectly by the company. Total revenue data include, in addition to sales, income from nonmanufacturing operations and nonoperating income. Profits are before dividend payments and have been adjusted to exclude special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes, (not shown) include Federal, State and local government, and foreign. Previous series last published in June 1972 B u l l e t i n , p. A-50. A 84 Board of Governors of the Federal Reserve System A rthur Jo h n E. F. B urns, G eorge W . M it c h e l l , Chairman Je f f r e y M . B u c h e r Sheehan H enry C. W R obert C . H o l l a n d P h il ip a l l ic h OFFICE OF M ANAGING DIRECTOR FOR OPERATIONS OFFICE OF BOARD MEMBERS D a n i e l M . D o y l e , M an aging D irecto r J o h n M . D e n k l e r , D epu ty M anaging D irector G o r d o n B . G r i m w o o d , A ssistan t D irector R o b e r t S o l o m o n , A d viser to the B oard Jo s e p h R . C o y n e , A ssistan t to the B oard Jo h n S . R i p p e y , A ssistan t to the B oard Jo h n J. H a r t , Special A ssistan t to the B oard F r a n k O ’B r i e n , J r ., Special A ssistan t to the T h o m a s J. O ’C o n n e l l , Counsel to the Vice Chairman E. Coldw ell OFFICE OF M ANAGING DIRECTOR FOR RESEARCH AND ECONOMIC POLICY Chairman and Program D irecto r fo r Contingency Planning W i l l i a m W . L a y t o n , D irecto r of Equal E m ploym ent O pportunity B r e n t o n C . L e a v i t t , Program D irecto r for Banking Structure P e t e r E . B a r n a , Program D irecto r fo r Bank H olding C om pany A n alysis B oard D o n a l d J. W i n n , Special A ssistan t to the DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION Counsel C h a r l e s R . M c N e i l l , A ssistan t to the R o n a l d G . B u r k e , D irector J a m e s R . K u d l i n s k i , A sso cia te D irecto r E. M a u r i c e M c W h i r t e r , A sso cia te D irector W a l t e r A . A l t h a u s e n , A ssistan t D irector H a r r y A . G u i n t e r , A ssistan t D irecto r T h o m a s E. M e a d , A ssista n t D irecto r P. D . R i n g , A ssista n t D irector Digitized forW i l l ia m H . W a l l a c e , A ssistan t D irecto r FRASER B oard B oard Jo h n N ic o l l , D eputy G eneral Counsel B a l d w in B . T u t t l e , A ssistan t G eneral DIVISION OF FEDERAL RESERVE BANK OPERATIONS J. C h a r l e s P a r t e e , M anaging D irector S t e p h e n H . A x il r o d , A d viser to the B oard S a m u e l B . C h a s e , Jr ., A d viser to the B oard A r t h u r L . B r o i d a , A ssistan t to the B oard M u r r a y A l t m a n n , Special A ssistan t to the General Counsel A l l e n L. R a i k e n , A d viser G a r y M . W e l s h , A d viser OFFICE OF SAVER AND CONSUMER AFFAIRS F r e d e r i c S o l o m o n , A ssistan t to the B oard and D irector J a n e t O . H a r t , D eputy D irector R o b e r t S . P l o t k i n , A ssistan t D irector L y l e E . G r a m l e y , D irector J a m e s L . P ie r c e , A sso cia te D irecto r P e t e r M . K e i r , A d viser J a m e s L . K i c h l i n e , A d viser S t a n l e y J. S i g e l , A d viser J o s e p h S . Z e i s e l , A d viser J a m e s B . E c k e r t , A ssociate A d viser E d w a r d C . E t t i n , A ssociate A d viser R o b e r t J. L a w r e n c e , A ssociate A d viser E l e a n o r J. S t o c k w e l l , A ssociate A d viser R o b e r t M . F i s h e r , A ssistan t A d viser J. C o r t l a n d G . P e r e t , A ssistan t A d viser S t e p h e n P . T a y l o r , A ssistan t A d viser H e l m u t F . W e n d e l , A ssista n t A d viser L e v o n H . G a r a b e d i a n , A ssistan t D irector DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY DIVISION OF INTERNATIONAL FINANCE C h a r l e s L. H a m p t o n , D irector G l e n n L. C u m m in s , A ssista n t D irector W a r r e n N . M in a m i, A ssista n t D irector R o b e r t J. Z e m e l , A ssista n t D irector T h e o d o r e E . A l l i s o n , S ecretary N o r m a n d R . V. B e r n a r d , A ssistan t DIVISION OF PERSONNEL DIVISION OF BANKING SUPERVISION AND REGULATION R a l p h C . B r y a n t , D irector J o h n E . R e y n o l d s , A ssociate D irector R o b e r t F . G e m m i l l, A d viser R e e d J. I r v i n e , A d viser H e l e n B . J u n z , A d viser B e r n a r d N o r w o o d , A d viser S a m u e l P i z e r , A d viser G e o r g e B . H e n r y , A sso cia te A dviser C h a r l e s J. S ie g m a n , A ssistan t A d viser E d w in M . T r u m a n , A ssistan t A dviser K e i t h D . E n g s t r o m , D irecto r C h a r l e s W . W o o d , A ssista n t D irector OFFICE OF THE CONTROLLER J o h n K a k a l e c , C ontroller T y l e r E . W i l l i a m s , J r ., A ssistan t Controller Secretary G r i f f i t h L . G a r w o o d , A ssista n t Secretary B r e n t o n C . L e a v i t t , D irecto r F r e d e r i c k R . D a h l , A ssistan t D irector J a c k M . E g e r t s o n , A ssista n t D irector J o h n N . L y o n , A ssistan t D irecto r J o h n T . M c C l i n t o c k , A ssista n t D irector T h o m a s A . S id m a n , A ssistan t D irector W i l l i a m W . W i l e s , A ssistan t D irecto r J o h n E . R y a n , A d viser DIVISION OF ADMINISTRATIVE SERVICES W a l t e r W . K r e i m a n n , D irector D o n a l d E . A n d e r s o n , A ssistan t D irector J o h n D . S m i t h , A ssista n t D irector A 85 A 86 Federal Open Market Committee A E rnest F. rthur T. B B Chairm an u rn s, D aughm an Je f f r e y M . B a v id A R obert C ucher P h il ip E . C o l d w e l l B ruce H lfred K. R obert P G eorge W . M H olland M it c h e l l Jo h n E . S h e e h a n H aclaury M V ice Chairm an a yes, P. E a stbu r n enry C. W a l l ic h ayo Econom ist (International Finance) E d w a r d G . B o e h n e , A ssociate Econom ist R a l p h C . B r y a n t , A ssociate Econom ist S a m u e l B . C h a s e , J r . , A ssociate Econom ist R i c h a r d G . D a v i s , A ssociate Econom ist R a l p h T . G r e e n , A ssociate Econom ist J o h n K a r e k e n , A ssociate Econom ist J a m e s L . P i e r c e , A ssociate Econom ist J o h n E . R e y n o l d s , A ssociate Econom ist K a r l O . S c h e l d , A ssociate Econom ist Secretary D eputy Secretary N o r m a n d R . V . B e r n a r d , A ssistan t Secretary T h o m a s J . O ’C o n n e l l , General Counsel E d w a r d G . G u y , D eputy General Counsel J o h n N i c o l l , A ssistan t General Counsel J . C h a r l e s P a r t e e , Senior Econom ist S t e p h e n H . A x i l r o d , Econom ist (Dom estic Finance) L y l e E . G r a m l e y , Econom ist (Dom estic Business) R o b e r t S o lo m o n , A r th u r L. B ro id a , M u rra y A ltm a n n , Manager, System Open Market Account Deputy Manager for Domestic Operations S c o t t E . P a r d e e , Deputy Manager for Foreign Operations A l a n R . H o lm e s , P e te r D. S te rn lig h t, Federal Advisory Council T homas I. Sto r r s, D o n a ld E . L asater, G eorge B . R o c k w e l l , f if t h e ig h t h f e d e ra l re se rv e d is tric t, f e d e ra l re se rv e d is tric t, f ir s t f e d e r a l W il l ia m r e s e r v e d is t r ic t E llm ore C . P a tt er so n , G eorge seco n d fed er a l E ugene t h ir d f e d e r a l B en fo u r th federal D ix o n , n in t h f e d e r a l H. A d a m s, t e n t h fed er a l F. Love, e l e v e n t h fed era l RESERVE DISTRICT H arold A . R og er s, s ix t h f e d e r a l RESERVE DISTRICT r e s e r v e d is t r ic t H. RESERVE DISTRICT r e s e r v e d is t r ic t L a w r e n c e A . M e r r ig a n , sev en th federal r e s e r v e d is t r ic t r e s e r v e d is t r ic t C l a ir E . F u l t z , M urray, r e s e r v e d is t r ic t r e s e r v e d is t r ic t J a m es F . B o d in e , F. President Vice President Secretary Associate Secretary H e rb e rt V. P ro c h n o w , W i l l i a m J. K o r s v i k , t w e l ft h fed era l A 87 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, branch, or facility Zip Chairman Deputy Chairman President First Vice President BOSTON* ................. 02106 Louis W. Cabot Robert M. Solow Frank E. Morris James A. McIntosh NEW YORK* 10045 Roswell L. Gilpatric Frank R. Milliken Donald Nesbitt Alfred Hayes Richard A. Debs Buffalo ................... ..14240 Vice President in charge of branch A. A. Maclnnes, Jr. PHILADELPHIA 19105 John R. Coleman Edward J. Dwyer David P. Eastburn Mark H. Willes CLEVELAND* 44101 Horace A. Shepard Robert E. Kirby Phillip R. Shriver G. Jackson Tankersley Willis J. Winn Walter H. MacDonald Robert W. Lawson, Jr. E. Craig Wall James G. Harlow Charles W. DeBell Robert P. Black George C. Rankin Cincinnati ............. Pittsburgh ............. 45201 15230 RICHMOND*................23261 Baltimore .................. 21203 Charlotte .................. 28201 Culpeper Communications Center ...................22701 ATLANTA ............... 30303 Birmingham .......... Jacksonville .......... Nashville ............... New Orleans ........ Miami Office ........ 35202 32203 37203 70161 33152 CHICAGO* ............. 60690 Detroit .................... 48231 ST. LOUIS ............... 63166 Little Rock ............ Louisville ............. Memphis ............... 72203 40201 38101 MINNEAPOLIS Helena .................... KANSAS CITY 55480 59601 64198 Denver ................... Oklahoma City ,,, Omaha .................. 80217 73125 68102 DALLAS ................... 75222 El Paso ................... Houston ................. San Antonio .......... 79999 77001 78295 SAN FRANCISCO .. ..94120 Los Angeles .......... Portland ................. Salt Lake City Seattle .................... 90051 97208 84110 98124 Robert E. Showalter Robert D. Duggan Jimmie R. Monhollon Stuart P. Fishburne J. Gordon Dickerson, Jr. H. G. Pattillo Clifford M. Kirtland, Jr. Frank P. Samford, Jr. James E. Lyons John C. Tune Floyd W. Lewis Monroe Kimbrel Kyle K. Fossum Peter B. Clark Robert H. Strotz W. M. Defoe Robert P. Mayo Edward J. Schnuck Sam Cooper W. M. Pierce James H. Davis Jeanne L. Holley Darryl R. Francis Eugene A. Leonard Bruce B. Dayton James P. McFarland William A. Cordingley Bruce K. MacLaury Clement A. Van Nice Robert T. Person Harold W. Andersen Maurice B. Mitchell James G. Harlow, Jr. Durward B. Varner George H. Clay John T. Boysen John Lawrence Charles T. Beaird Herbert M. Schwartz Thomas J. Barlow Pete J. Morales, Jr. Ernest T. Baughman T. W. Plant O. Meredith Wilson Joseph F. Alibrandi Joseph R. Vaughan Loran L. Stewart Sam Bennion Malcolm T. Stamper John J. Balles John B. Williams Hiram J. Honea Edward C. Rainey Jeffrey J. Wells George C. Guynn W. M. Davis William C. Conrad John F. Breen Donald L. Henry L. Terry Britt Howard L. Knous J. David Hamilton William G. Evans Robert D. Hamilton Fredric W. Reed James L. Cauthen Carl H. Moore Gerald R. Kelly William M. Brown A. Grant Holman Paul W. Cavan * Additional offices of these Banks are located at Lewiston, M aine 04240; W indsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Colum bus, Ohio 43216; Columbia, South Carolina 29210; Des M oines, Iowa 50306; Indianapolis, Indiana 46204; and M ilwaukee, W isconsin 53202. A 88 Federal Reserve Board Publications A vailable from Publications S ervices, D ivision of A d m inistrative Services, B o a rd of G overnors o f the Fed eral R eserve System , W ashington, D .C . 20551. W here a charge is indicated, rem ittance should accom pany request and be m ade payable to the order of the B oard o f G overnors o f the Federal R eserve System in a form collectible at p a r in U .S. currency. (Stam ps and coupons are not accepted.) The 1964. 260 p p . $ 1 .0 0 e a c h ; 10 o r m o re to o n e a d d re s s , $ .85 e a c h . T h e P e r f o r m a n c e o f B a n k H o l d i n g C o m p a n ie s . 1967. 29 p p . $.25 e a c h ; 10 o r m o re to o n e a d d re ss , $ .2 0 e a c h . T h e F e d e r a l F u n d s M a r k e t . 1959. I l l p p . $ 1.00 e a c h ; 10 o r m o re to o n e a d d re s s , $.85 e a c h . T r a d i n g i n F e d e r a l F u n d s . 1965. 116 p p . $1.00 e a c h ; 10 o r m o re to o n e a d d re s s , $.85 e a c h . F e d e r a l R e s e r v e S y s te m — P u rp o s e s and F u n c t i o n s . 1974. 125pp . $ 1 .0 0 ea c h ; lO orm ore to one address, $ .75 each. A n n u a l R epo rt F e d e r a l R e serv e B u lle tin . M onthly. $20 .0 0 per year or $ 2 .0 0 each in the United States and its possessions, and in B olivia, Canada, Chile, C o lom bia, Costa Rica, Cuba, Dom inican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, M exico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela; 10 or more of same issue to one address, $ 1 8 .0 0 per year or $1.75 each. Elsewhere, $ 2 4 .0 0 per year or $2.5 0 each. F e d e r a l R e serv e C h a r t B ook o n F in a n c ia l a n d B u s i n e s s S t a t i s t i c s . M o n th ly . S u b sc rip tio n in c lu d e s o n e issu e o f H isto ric a l C h a rt B o o k . $12.00 p e r y e a r o r $1.25 e a c h in th e U n ite d S ta te s an d th e c o u n trie s liste d a b o v e ; 10 o r m o re o f sa m e issu e to o n e a d d re s s , $ 1 .0 0 e a c h . E ls e w h e re , $15 .0 0 p er y e a r o r $ 1 .5 0 e a c h . H i s t o r i c a l C h a r t B o o k . Issued annually in Sept. Subscription to monthly chart book includes one issue. $1.25 each in the United States and countries listed above; 10 or more to one address, $1.00 each. Elsewhere, $ 1 .5 0 each. T h e F e d e r a l R e s e r v e A c t , as amended through D e cember 1971, with an appendix containing provi sions of certain other statutes affecting the Federal Reserve System . 252 pp. $1.25. R e g u l a t io n s o f t h e B o a r d o f G o v e r n o r s o f t h e F ed era l R eserve S y st em . P u b lis h e d I n t e r p r e t a t i o n s o f t h e B o a rd o f G o v e r n o r s , as o f June 30, 1974. $2.50. S u p p l e m e n t t o B a n k i n g a n d M o n e t a r y S t a t i s 't i c s . Sec. 1. Banks and the Monetary System . 1962. 35 pp. $ .3 5 . Sec. 2. Member Banks. 1967. 59 pp. $ .50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Sec. 6. Bank Incom e. 1966. 29 pp. $.3 5 . Sec. 9. Federal Reserve Banks. 1965. 36 pp. $ .3 5 . Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $ .5 0 . Sec. 11. Currency. 1963. 11 pp. $ .3 5 . Sec. 12. M oney Rates and Securities Markets. 1966. 182 pp. $ .6 5 . Sec. 14. G old. 1962. 24 pp. $.3 5 . Sec. 15. International Finance. 1962. 92 pp. $ .6 5 . Sec. 16 (New). Consumer Credit. 1965. 103 pp. $ .65. I n d u s t r i a l P r o d u c t i o n — 1971 E d i t i o n . 1972. 383 pp. $ 4 .0 0 each; 10 or more to one address, $3.50 each. B a n k M e r g e r s & t h e R e g u l a t o r y A g e n c ie s : A p p l i c a t i o n o f t h e B a n k M e r g e r A c t o f 1960. U .S . T r e a s u r y A d v a n c e R e f u n d i n g , Ju n e 1960-J u ly 1964. 1966. 65 p p . $ .5 0 e a c h ; 10 or m o re to o n e a d d re s s , $ .4 0 e a c h . B a n k C r e d i t - C a r d a n d C h e c k - C r e d i t P l a n s . 1968. 102 p p . $ 1 .0 0 e a c h ; 10 o r m o re to o n e a d d re ss , $.85 e a c h . I n t e r e s t R a te E x p e c ta tio n s : T e s ts o n Y ie ld S p re a d s A m ong S h o rt-T e rm G o v e rn m e n t S e c u r i t i e s . 1968. 83 p p . $ .5 0 e a c h ; 10 o r m o re to o n e a d d re s s , $ .4 0 e a c h . S u rv e y o f F in a n c ia l C h a ra c te r is tic s o f C o n s u m e r s . 1966. 166 p p . $ 1 .0 0 e a c h ; 10 o r m o re to o n e a d d re s s , $ .85 e a c h . S u r v e y o f C h a n g e s in F a m i l y F i n a n c e s . 1968. 321 p p . $ 1 .0 0 e a c h ; 10 o r m o re to o n e a d d re s s , $.85 each. R e p o rt o f th e J o in t T re a s u ry -F e d e ra l R e serv e S tu d y o f th e U .S . G o v e r n m e n t S e c u r i t i e s M a r k e t . 1969. 48 p p . $.25 e a c h ; 10 o r m o re to o n e a d d re s s , $ .2 0 e a c h . J o in t T re a s u r y -F e d e r a l R e se rv e S tu d y o f T h e G o v e rn m e n t S e c u r itie s M a r k e t: S t a f f S tu d ie s — P a r t 1. 1970. 86 p p . $ .5 0 each; 10 or more to one address, $ .4 0 each. P a r t 2. 1971. 153 p p . and P a r t 3. 1973. 131 p p . Each volum e $1.00; 10 or more to one address, $.85 each. O pen M a r k e t P o lic ie s a n d O p e r a tin g P ro c e d u r e s — S t a f f S t u d i e s . 1971. 218 p p . $2.00; 10 o r m o re to o n e a d d re s s , $1.75 e a c h . R e a p p ra is a l o f t h e F e d e r a l R e se rv e D is c o u n t M e c h a n is m , V o l. 1. 1971. 276 p p . V o l. 2. 1971. 173 p p . V o l. 3. 1972. 220 p p . E a c h v o lu m e $ 3.0 0 e a c h ; 10 o r m o re to o n e a d d re s s , $ 2 .5 0 e a c h . T h e E c o n o m e tric s o f P ric e D e te r m in a tio n C o n f e r e n c e , O c to b e r 30-31, 1970, W a s h in g to n , D .C . O c t. 1972. 397 p p . C lo th e d . $5 .0 0 e a c h ; 10 or m o re to o n e a d d re s s , $ 4 .5 0 e a c h . P a p e r e d . $4.0 0 e a c h ; 10 o r m o re to o n e a d d re s s , $ 3 .6 0 ea c h . F e d e r a l R e se rv e S t a f f S tu d y : W ay s t o M o d e ra te F l u c t u a t i o n s i n H o u s in g C o n s t r u c t i o n , D e c . 1972. 487 p p . $4 .0 0 e a c h ; 10 o r m o re to o n e a d d re s s , $ 3 .6 0 e a c h . A 89 L e n d in g F u n c tio n s o f t h e F e d e r a l R e s e rv e B a n k s : A H i s t o r y , by Howard H. Hackley. 1973. 271 pp. $ 3 .5 0 each; 10 or more to one address, $ 3 .0 0 each. I n t r o d u c t i o n t o F l o w o f F u n d s . 1975. 64 pp. $ .50 each; 10 or more to one address, $ .4 0 each. STAFF ECONOM IC STUDIES Studies and p apers on econom ic and financial subjects that are of general interest in the field of econom ic research. S u m m a r ie s O n l y P r i n t e d in t h e B u l l e t i n (L im ited supply of m im eographed copies of full text available upon request fo r single copies) T h e Im p a c t o f H o ld in g C o m p a n y A c q u is itio n s o n A g g r e g a t e C o n c e n t r a t i o n in B a n k i n g , by Samuel H . Talley. Feb. 1974. 24 pp. O p e r a t i n g P o l i c i e s o f B a n k H o l d i n g C o m p a n ie s — P a r t II: N o n b a n k i n g S u b s i d i a r i e s , by Robert J. Lawrence. Mar. 1974. 59 pp. S h o r t - R u n V a r i a t i o n s in t h e M o n e y S t o c k — S e a s o n a l o r C y c l i c a l ? by Herbert M . Kaufman and Raymond E . Lombra. June 1974. 27 pp. H o u s e h o l d - S e c t o r E c o n o m ic A c c o u n t s , by David F. Seiders. Jan. 1975. 84 pp. P r in t e d in F ull in t h e B u l l e t in Staff E conom ic Studies shown in list below. (Except fo r Staff P apers, Staff Econom ic S tu dies, and som e leading articles, m ost of the articles reprinted do not exceed 12 p a g e s.) S e a s o n a l F a c t o r s A f f e c t i n g B a n k R e s e r v e s . 2/58. M e a s u r e s o f M e m b e r B a n k R e s e r v e s . 7/63. R e s e a r c h o n B a n k in g S t r u c t u r e a n d P e r fo r m a n c e , Staff E con om ic Stu dy by Tynan S m ith . 4 /6 6 . A R e v is e d I n d e x o f M a n u f a c t u r i n g C a p a c i t y , Staff E con om ic Stu dy by Frank de Leeuw with Frank E. Hopkins and M ichael D. Sherman. 11/66. U .S . I n t e r n a t i o n a l T r a n s a c t i o n s : T r e n d s in 19 60-67. 4/68. E u r o - D o l l a r s : A C h a n g i n g M a r k e t . 10/69. 5/73. F e d e r a l F i s c a l P o l i c y , 1965-72. 6/73. C a p a c i t y U t i l i z a t i o n in M a j o r M a t e r i a l s I n d u s t r i e s . 8/73. C r e d it- C a r d a n d C h e c k - C r e d it P l a n s a t C o m m er c i a l B a n k s . 9 /73. R a t e s o n C o n s u m e r I n s t a l m e n t L o a n s . 9 /73. N ew S e rie s f o r L a r g e M a n u f a c t u r i n g C o r p o r a t i o n s . 10/73. M o n e y S u p p l y in t h e C o n d u c t o f M o n e t a r y P o l i c y . 1/73. U .S . E n e r g y S u p p li e s a n d U s e s , Staff E conom ic Study by Clayton Gehman. 12/73. REPRINTS R e c e n t C h a n g e s in B a n k i n g . 3/70. M e a s u r e s o f S e c u r i t y C r e d i t . 12/70. M o n e ta ry A g g re g a te s a n d M o n ey M a rk e t C o n d i t i o n s in O p e n M a r k e t P o l i c y . 2/71. I n t e r e s t R a te s , C r e d it F lo w s , a n d M o n e ta r y A g g r e g a t e s S i n c e 1964. 6/71. I n d u s t r i a l P r o d u c t i o n — R e v is e d a n d N e w M e a s u r e s . 7/71. R e v is e d M e a s u r e s o f M a n u f a c t u r i n g C a p a c i t y U t i l i z a t i o n . 10/71. R e v is io n o f B a n k C r e d i t S e r i e s . 12/71. A s s e ts a n d L ia b ilitie s o f F o re ig n B r a n c h e s o f U .S . B a n k s . 2/72. B a n k D e b its , D e p o s its , a n d D e p o s it T u r n o v e r — R e v is e d S e r i e s . 7/72. Y i e l d s o n N e w l y I s s u e d C o r p o r a t e B o n d s . 9/72. R e c e n t A c t i v i t i e s o f F o r e i g n B r a n c h e s o f U .S . B a n k s . 10/72. R e v is io n o f C o n s u m e r C r e d i t S t a t i s t i c s . 10/72. O n e - B a n k H o l d i n g C o m p a n ie s B e f o r e t h e 1970 A m e n d m e n t s . 12/72. Y ie ld s o n R e c e n t l y O f f e r e d C o r p o r a te B o n d s. S tru c tu r e of C o m m e rc ia l R e c e n t D e v e l o p m e n t s in t h e U .S . B a l a n c e o f P a y m e n t s . 4/7 4 . C h a n g e s i n B a n k L e n d i n g P r a c t i c e s , 1973. 4/74. C a p a c ity U ti l i z a t i o n f o r M a jo r M a te r ia ls : R e v is e d M e a s u r e s . 4 /7 4 . O p e n M a r k e t O p e r a t i o n s in 1973. 5/74. N u m e ric a l S p e c ific a tio n s o f F in a n c ia l V a r ia b le s a n d T h e i r R o l e in M o n e t a r y P o l i c y . 5/74. B a n k i n g a n d M o n e t a r y S t a t i s t i c s , 1973. Selected series of banking and monetary statistics for 1973 only. 3/74 and 7 /74. I n f l a t i o n a n d S t a g n a t i o n in M a j o r F o r e i g n I n d u s t r i a l C o u n t r i e s . 10/74. R e v is io n o f t h e M o n e y S t o c k M e a s u r e s a n d M e m b e r B a n k D e p o s i ts . 12/74. C h a n g e s in T im e a n d S a v i n g s D e p o s it s a t C o m m e r c i a l B a n k s , A p r i l - J u l y 1974. 1/75. A 90 Index to Statistical Tables R eferen ces are to pages A -4 th rou gh A -83 alth ou gh the prefix “ A ” is om itted in th is index (For list of tables published periodically, but not monthly, see page A-3) ACCEPTANCES, bankers, 11, 27, 29 Agricultural loans of commercial banks, 18, 20 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 18, 19, 20, 32 Federal Reserve Banks, 12 Nonfinancial corporations, current, 43 Automobiles: Consumer instalment credit, 47, 48, 49 Production index, 50, 51 BANK credit proxy, 15 Bankers balances, 18,' 19, 22 (See also Foreigners, claims on, and liabilities to) Banking and monetary statistics for 1974, 79-82 Banks for cooperatives, 40 Bonds (See also U.S. Govt, securities): New issues, 40, 41, 42 Yields and prices, 30, 31 Branch banks: Assets, foreign branches of U.S. banks, 72 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 24, 73 Brokerage balances, 71 Business expenditures on new plant and equipment, 43 Business indexes, 52 Business loans (See Commercial and industrial loans) CAPACITY utilization, 52 Capital accounts: Banks, by classes, 16, 19, 24 Federal Reserve Banks, 12 Central banks, 77, 78 Certificates of deposit, 24 Commercial and industrial loans: Commercial banks, 15, 18, 27, 82 Weekly reporting banks, 20-24, 25 Commercial banks: Assets and liabilities, 15, 16, 18, 19, 20 Consumer loans held, by type, 47 Deposits at, for payment of personal loans, 26 Loans sold outright, 27, 82 Number, by classes, 16 Real estate mortgages held, by type of holder and prop erty, 4 4 ^ 6 Commercial paper, 27, 29 Condition statements (See Assets and liabilities) Construction, 52, 53 Consumer credit: Instalment credit, 47, 48, 49 Noninstalment credit, 47 Consumer price indexes, 52, 55 Consumption expenditures, 56, 57 Corporations: Profits, taxes, and dividends, 43 Sales, revenue, profits, and dividends of large manufacturing corporations, 83 Security issues, 41, 42 Security yields and prices, 30, 31 Cost of living (See Consumer price indexes) Currency and coin, 5, 9, 18, 81 Currency in circulation, 5, 14, 81 Customer credit, stock market, 31, 32 DEBITS to deposit accounts, 13 Debt (See specific types of debt or securities) Demand deposits: Adjusted, commercial banks, 13, 15, 19 Banks, by classes, 16, 19, 22, 23 Ownership by individuals, partnerships, and corporations, 26 Subject to reserve requirements, 15 Turnover, 13 Deposits (See also specific types of deposits): Accumulated at commercial banks for payment of personal loans, 26 Banks, by classes, 16, 19, 22, 23, 32 Federal Reserve Banks, 12, 74 Subject to reserve requirements, 15 Discount rates (See Interest rates) Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 43, 83 EMPLOYMENT, 52, 54 FARM mortgage loans, 44 Federal agency obligations, 11, 12, 13 Federal finance: Receipts and outlays, 34, 35 Treasury operating balance, 34 Federal funds, 7, 18, 20, 23, 29 Federal home loan banks, 39, 40 Federal Home Loan Mortgage Corporation, 39, 44, 45 Federal Housing Administration, 44, 45, 46 Federal intermediate credit banks, 39, 40 Federal land banks, 39, 40, 44 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Federal Reserve Banks: Condition statement, 12 U.S. Govt, securities held, 4, 12, 13, 36, 37, 80 Federal Reserve credit, 4, 6, 12, 13, 79, 80 Federal Reserve notes, 12 Federally sponsored credit agencies, 39, 40 Finance companies: Loans, 20, 48, 49 Paper, 27, 29 Financial institutions, loans to, 18, 20 Float, 4, 80 Flow of funds, 58, 59 Foreign: Currency operations, 11, 12 Deposits in U.S. banks, 5, 12, 19, 23, 74, 81 Exchange rates, 77 Trade, 61 Foreigners: Claims on, 68, 69, 70, 74, 75, 76 Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 GOLD: Certificates, 12 Earmarked, 74 Net purchases by United States, 62 Reserves of central banks and govts., 78 Stock, 4, 61, 80 Government National Mortgage Assn., 44 Gross national product, 56, 57 A 91 R eferen ces are to pages A -4 th rou gh A -83 alth ou gh th e prefix “ A ” is om itted in th is ind ex HOUSING permits, 52 Housing starts, 53 INCOME, national and personal, 56, 57 Industrial production index, 50, 51, 52 Instalment loans, 47, 48, 49 Insurance companies, 33, 36, 37, 44, 46 Insured commercial banks, 16, 18, 19, 26 Interbank deposits, 16, 22 Interest rates: Bond and stock yields, 30 Business loans by banks, 28 Federal Reserve Banks, 8 Foreign countries, 76, 77 Money market rates, 29 Mortgage yields, 45, 46 Prime rate, commercial banks, 28 Time and savings deposits, maximum rates, 10 International capital transactions of U .S., 63-76 International institutions, 62, 77, 78 Inventories, 56 Investment companies, issues and assets, 42 Investments (See also specific types of investments): Banks, by classes, 16, 18, 20, 21, 32 Commercial banks, 15 Federal Reserve Banks, 12, 13 Life insurance companies, 33 Savings and loan assns., 33 LABOR force, 54 Life insurance companies (See Insurance companies) Loans (See also specific types of loans): Banks, by classes, 16, 18, 20, 32 Commercial banks, 15, 16, 18, 20, 25, 27, 28, 82 Federal Reserve Banks, 4, 6, 8, 12, 13, 79, 80 Insurance companies, 33, 46 Insured or guaranteed by U .S., 44, 45, 46 Savings and loan assns., 33 MANUFACTURERS: Capacity utilization, 52 Production index, 51, 52 Margin requirements, 10 Member banks: Assets and liabilities, by classes, 16, 18, 19 Borrowings at Federal Reserve Banks, 6, 12, 79 Number, by classes, 16 Reserve position, basic, 7 Reserve requirements, 9 Reserves and related items, 4, 6, 15, 80 Mining, production index, 51 Mobile home shipments, 53 Money market rates (See Interest rates) Money stock and related data, 14 Mortgages (See Real estate loans and Residential mortgage loans) Mutual funds (See Investment companies) Mutual savings banks, 23, 32, 36, 37, 44, 46 NATIONAL banks, 16, 26 National defense expenditures, 35 National income, 56, 57 Nonmember banks, 17, 18, 19, 26 OPEN market transactions, 11 PAYROLLS, manufacturing index, 52 Personal income, 57 Prices: Consumer and wholesale commodity, 52, 55 Security, 31 Prime rate, commercial banks, 28 Production, 50, 51, 52 Profits, corporate, 43, 83 REAL estate loans: Banks, by classes, 18, 20, 32, 44 Mortgage yields, 45, 46 Type of holder and property mortgaged, 44-A6 Reserve position, basic, member banks, 7 Reserve requirements, member banks, 9 Reserves: Central banks and govts., 78 Commercial banks, 19, 22, 24 Federal Reserve Banks, 12 Member banks, 5, 6, 15, 19, 79, 81 U.S. reserve assets, 61 Residential mortgage loans, 45, 46 Retail credit, 47, 48, 49 Retail sales, 52 SALES, revenue, profits, and dividends of large manufacturing corporations, 83 Saving: Flow of funds series, 58, 59 National income series, 56, 57 Savings and loan assns., 33, 37, 44, 46 Savings deposits (See Time deposits) Savings institutions, principal assets, 32, 33 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 39, 40 International transactions, 70, 71 New issues, 40, 41, 42 Yields and prices, 30, 31 Special Drawing Rights, 4, 12, 60, 61 State and local govts.: Deposits, 19, 22 Holdings of U.S. Govt, securities, 36, 37 New security issues, 40, 41 Ownership of securities of, 18, 21, 32 Yields and prices of securities, 30, 31 State member banks, 17, 26 Stock market credit, 31, 32 Stocks (See also Securities): New issues, 41, 42 Yields and prices, 30, 31 TAX receipts, Federal, 35 Time deposits, 10, 15, 16, 19, 23, 24 Treasury currency, Treasury cash, 4, 5, 80, 81 Treasury deposits, 5, 12, 34, 81 Treasury operating balance, 34 UNEMPLOYMENT, 54 U.S. balance of payments, 60 U.S. Govt, balances: Commercial bank holdings, 19, 23 Member bank holdings, 15 Treasury deposits at Reserve Banks, 5, 12, 34, 81 U.S. Govt, securities: Bank holdings, 16, 18, 21, 32, 36, 37 Dealer transactions, positions, and financing, 38 Federal Reserve Bank holdings, 4, 12, 13, 36, 37, 80 Foreign and international holdings, 12, 68, 70, 74 International transactions, 68, 70 New issues, gross proceeds, 41 Open market transactions, 11 Outstanding, by type of security, 36, 37 Ownership, 36, 37 Yields and prices, 30, 31 Utilities, production index, 51 VETERANS Administration, 44, 45, 46 WEEKLY reporting banks, 20-24 YIELDS (See Interest rates) The Federal Reserve System B o u n d a rie s o f F e d e ra l R e se rv e D is tric ts a n d T h e ir B ra n c h T e rrito rie s Minneapolis^, C h ic a g o j OmaJui* HasfiviU* Oklahoma Citjf' tu f a a . D allas Antmioi Pram ty UM Qaivtn, C art LEGEND — Boundaries of Federal Reserve Districts ----- Boundaries of Federal Reserve Branch Territories Q Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Federal Reserve Bank Facilities
@FedFRASER