Full text of Federal Reserve Bulletin : March 1981

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

V o l u m e 67 □ N u m b e r 3 □ M a r c h 1981

FEDERAL RESERVE

BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.

P u b l ic a t io n s C o m m it t e e

Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
Naomi P. Salus, C oordinator

The F e d e r a l R e s e r v e B u l l e t i n is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. The artwork is provided by the Graphic Communications Section under the
direction of Peter G. Thomas. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.




Table of Contents
195 M o n e t a r y P o l ic y R e p o r t
Co n g r ess

to

Submitted pursuant to the Full Employ­
ment and Balanced Growth Act of 1978, the
Board’s report states that the policy of
monetary restraint adopted by the Federal
Reserve is intended to contribute to the
process of breaking the momentum of infla­
tion.
209 TREASUR Y AND FEDERAL RESERVE
F o r e ig n Ex c h a n g e O p e r a t io n s

The underlying strength of the dollar in
foreign exchange markets over the period
from August 1980 through January 1981
reflected the relatively favorable currentaccount position of the United States.
229 S taff S tu d ie s
“ Banking Structure and Performance at the
State Level during the 1970s” examines the
levels and trends in state banking structure
and analyzes statewide banking perform­
ance during the 1970s.
231 I n d u s t r ia l P r o d u c t io n
Output declined about 0.5 percent in Febru­
ary.
233 S tate m e n ts

to

C o n g ress

Henry C. Wallich, Member, Board of Gov­
ernors, testifies on S. 144, a bill that would
facilitate the establishment and operation of
export trading companies, and focuses on
the provisions of the bill relating to bank
ownership of export trading companies, be­
fore the Subcommittee on International Fi­
nance and Monetary Policy of the Senate
Committee on Banking, Housing, and Ur­
ban Affairs, February 17, 1981.



235 Nancy H. Teeters, Member, Board of Gov­
ernors, testifies on the proposed “ Cash
Discount Act” and says that the Board
favors encouraging such discounts, before
the Subcommittee on Consumer Affairs of
the Senate Committee on Banking, Hous­
ing, and Urban Affairs, February 18, 1981.
237 Paul A. Volcker, Chairman, Board of Gov­
ernors, discusses the Monetary Policy Re­
port (see article, pages 195-208) and empha­
sizes the importance of restraint on money
and credit combined with control of federal
spending, before the Senate Committee on
Banking, Housing, and Urban Affairs, Feb­
ruary 25, 1981. (Chairman Volcker gave a
similar statement before the House Com­
mittee on Banking, Finance, and Urban
Affairs, February 26, 1981.)
241 J. Charles Partee, Member, Board of Gov­
ernors, discusses H.R. 1294, a bill to extend
margin credit regulations to the acquisition
of U.S. corporations by foreigners using
credit obtained from foreign lenders, and
House Concurrent Resolution 59, which
calls for a study of the effects of such
foreign acquisitions on our economy, be­
fore the Subcommittee on Telecommunica­
tions, Consumer Protection and Finance of
the House Committee on Energy and Com­
merce, February 26, 1981.
243 Chairman Volcker discusses economic poli­
cy and its relationship to monetary policy
and says that the linchpin of the whole
economic program is massive progress in
cutting back the upward surge in federal
expenditures, before the House Committee
on Ways and Means, March 3, 1981.
247 A n n o u n c e m e n t s
Publication of Capital Formation and Pub­
lic Policy.

Establishment of procedures for adminis­
tration of clearing balances, service
charges, and interim price and service
charges.
Amendment to Regulation P.
Admission of one state bank to membership
in the Federal Reserve System.
253 L e g a l D e v e l o p m e n t s
Various bank holding company and bank
merger orders, and pending cases.
Al F in a n c ia l

and

B u s in e s s S t atistic s

A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A52 International Statistics
A6 8 Special Tables




A67 G u id e

to Ta b u l a r P r e s e n t a t io n ,
S t a t ist ic a l R e l e a s e s , a n d S p e c ia l

Ta b l e s
A l l BOARD OF GOVERNORS AND STAFF

A74 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS

A75 F e d e r a l R e s e r v e B a n k s , B r a n c h e s ,
and

O f fice s

A76 F e d e r a l R e s e r v e B o a r d P u b l ic a ­
tio n s

A78 I n d e x
A80 M a p

to

of

S tatistic a l Ta b l e s

F e d e r a l R e s e r v e S ystem

Monetary Policy Report to Congress
Report submitted to the Congress pursuant to
the Full Employment and Monetary Growth Act
o f 1978 on February 25 , 1981.

A R e v ie w

of

D evelopm ents

in

1980

M onetary P olicy and the Perform ance
o f the E conom y in 1980

The past year was marked by considerable turbu­
lence in the nation’s economy and credit mar­
kets. Output and employment experienced ex­
traordinarily sharp swings—generally confound­
ing forecasters inside and outside government—
and so, too, did interest rates and financial flows.
On balance, the level of the aggregate output of
goods and services at the end of 1980 was little
changed from that at the beginning of the year,
and with a growing labor force, unemployment
was appreciably higher. At the same time, infla­
tion continued at about the same unacceptably
high rate as in 1979.
Many factors—some of them beyond the realm
of the purely economic—combined to produce
this distressing performance. At bottom, howev­
er, the behavior of the economy demonstrated
rather vividly the difficulties of overcoming a
deeply entrenched inflation and, particularly, the
stresses that arise when necessary monetary
restraint is not adequately supported by other
instruments of public policy.
As 1980 began, the underlying trend of price
increase was approaching a double-digit pace,
and a recent further jump in international oil
prices has threatened to worsen that trend. There
was broad consensus that fighting inflation must
be the top priority for national economic policy.
The Federal Reserve shaped its policy'for 1980
with the objective of reining in inflationary forces
in the economy and establishing a framework
within which decisionmakers in both the public
and the private sectors could look forward over



the longer run to a restoration of reasonable
stability in the general price level.
The basic premise of the System’s policy is the
broadly accepted notion that inflation can persist
over appreciable spans of time only if it is
accommodated by monetary expansion. The
strategy to which the System has committed
itself is to hold monetary growth to rates that fall
short of such accommodation and thus encour­
age adjustments consistent with a return to price
stability over time. To be sure, the relationships
between the growth of money and the behavior
of the economic variables of ultimate concern—
such as production, employment, and inflation—
are not in practice absolutely stable or predict­
able, especially in the short run. But the crucial
fact is that rates of monetary expansion in the
vicinity of those specified by the Federal Open
Market Committee (FOMC) last February im­
plied a substantial degree of restraint on the
growth of nominal gross national product—that
is, the combined result of inflation and real
growth. Put differently, the FOMC’s ranges for
monetary growth implied that, if inflation did not
abate, there would in all likelihood be strong
financial restraint on economic activity reflected
in an easing of pressures on markets for goods
and services and thence on productive capacity,
factors that in turn would help to contain the
momentum of inflation. This stabilizing influence
was especially critical in a circumstance in which
the impulse of a price hike by the Organization of
Petroleum Exporting Countries could easily have
led to a ratcheting upward of the trend rate of
inflation.
In any event, inflation did not abate in 1980.
But neither did it gain new momentum as many
feared it might. Rather, the increases in most
aggregate price indexes were about the same as
were recorded in 1979. The fixed-weight price
index for GNP rose 9V2 percent last year, a little
more than in 1979, while the consumer price
index rose 12V2 percent, somewhat less than in

196 Federal Reserve Bulletin □ March 1981

1979. Such rates of inflation themselves result in
a substantial increase in the amount of money
needed to finance transactions. Thus, even
though the monetary aggregates generally ex­
panded at rates near or a bit above the upper
ends of the FOMC’s announced ranges, the steep
rise in prices resulted in marked pressures in the
credit markets that exerted restraint on econom­
ic activity and kept inflationary pressures from
worsening.
These developments did not occur evenly
throughout the year. During the opening months,
the late-1979 boost in imported oil prices com­
bined with other factors—including strife in Af­
ghanistan, unsettlement in the Middle East gen­
erally, and attendant fears that an escalation of
defense spending might greatly enlarge already
sizable federal deficits—to aggravate inflationary
expectations. These expectations contributed
importantly to the upward pressures on interest
rates that were associated with the Federal Re­
serve’s efforts to contain growth in the monetary
and credit aggregates. Then, in March, President
Carter announced an anti-inflation program that
included the application by the Federal Reserve
of special restraints on credit growth by utilizing
the powers of the Credit Control Act of 1969.
The tightening of credit markets and the psy­
chological impact of the credit restraint program
on consumers contributed to the sharpness of the
economic decline that occurred in the first half of
the year, although a decline at some point had
long been anticipated in the light of strong pres­
sures on financial positions and other factors.
The drop in real GNP during the second quarter
far exceeded the expectations of forecasters; in
fact, it was the sharpest of the postwar period.
However, with the slump in activity came a
pronounced weakening of demands for money
and credit and a steep decline in interest rates.
The lowering of credit costs, coupled with re­
moval of the special credit restraints, in turn was
instrumental in bringing about a rebound in eco­
nomic activity in the second half of the year,
which turned out to be unexpectedly early and
strong and restored real GNP almost to its yearend 1979 level. During this period of recovery,
the public’s demands on financial markets grew
and interest rates rose as the System attempted
to hold monetary expansion within bounds.



The financial pressures on the private sector of
the economy last year were intensified by the
competition of the federal government for the
limited supply of credit. The federal deficit (uni­
fied basis, including off-budget agencies) grew
from $41 billion in calendar year 1979 to $83
billion in calendar year 1980. During 1980, more­
over, the massive federal deficit and repeated
upward revisions in spending forecasts added to
the prevailing mood of uncertainty and weak­
ened public confidence in the government’s will­
ingness and ability to mount a successful anti­
inflation effort.
In 1980, as in most periods of financial tension,
those types of purchases that involve longerterm investments of large sums were hardest hit.
The residential construction sector, especially,
was squeezed by high interest rates and, particu­
larly in the first half of the year, by reduced
credit availability. Housing starts fell from an
annual rate of 1 . 6 million units in the fourth
quarter of 1979 to a rate of 1.1 million units in the
second quarter of 1980; starts then snapped back
sharply to just over 1.5 million units by the end of
the summer, leveling off as interest rates moved
upward again in the final months of the year. The
mortgage markets have seen remarkably rapid
institutional change in the past year, reflecting an
adaptation to recurrent cyclical pressures on key
lenders and to the difficulties potential homebuyers face with traditional mortgage instru­
ments. Still, these changes have not insulated the
real estate market from the effects of inflated
home prices and of high mortgage rates on the
willingness and ability of people to borrow and
buy houses.
Credit conditions also played a role in dampen­
ing personal consumption expenditures in 1980—
particularly outlays on big-ticket durable goods.
However, several other influences militated
against a robust pattern of consumer spending.
The period leading up to 1980 had been marked
by weakness in real disposable personal income
and by an erosion of the financial flexibility of
households. Faced with budgetary strains caused
by relatively rapid increases in the prices of such
basic necessities as food and energy, many
American families had sought to maintain cus­
tomary consumption patterns—and in some cas­
es to finance extra purchases in anticipation of

Monetary Policy R eport to Congress

inflation—by borrowing. A declining trend in the
personal saving rate suggested that consumers
were becoming overextended and that some
weakening in spending relative to income was
quite likely; indeed, the saving rate rose from 4.7
percent in the fourth quarter of 1979 (a 28-year
low) to 6.2 percent in the second quarter of 1980.
Automobile purchases, which tend to be defer­
able in the short run, bore the brunt of the
consumer retrenchment. Although credit condi­
tions discouraged dealers from financing large
inventories and to some extent were a depressant
on demand for autos more generally, the steep
increases in the prices of cars and gasoline
appear to have been more decisive elements in
the picture.
Business firms, like households, entered 1980
in a weakened financial condition. The preceding
years of expansion had seen a substantial dete­
rioration in aggregate measures of corporate li­
quidity; many enterprises were heavily burdened
with short-term debt, and they thus were ex­
posed to severe cash-flow pressures when inter­
est rates rose. The combination of deteriorating
balance sheets, a high cost of capital, and slack­
ening demands for final products resulted in a 5
percent drop in real business fixed investment
during 1980. Some industries—particularly in the
defense, energy, and high-technology sectors—
did register gains in capital outlays, but those
elements of strength were more than offset by
declines in most cyclical manufacturing indus­
tries. Plant construction spending was especially
weak. Meanwhile, businesses kept a tight rein on
inventories, encouraged by the high costs of
carrying stocks; a moderate accumulation during
the first-half recession—concentrated in the
automotive and related industries—was largely
eliminated in the subsequent rebound.
In the government sector, purchases of goods
and services by the federal government rose
moderately in real terms during 1980, reflecting
in part a pickup in defense outlays. At the state
and local level, real purchases were about un­
changed, owing to fiscal strains associated with a
slowing of growth in tax revenues and cutbacks
in federal grants as well as to political pressures
for spending restraint.
The slackening of domestic aggregate demand
worked to hold down imports; in the case of



197

petroleum imports, the impact of decreased eco­
nomic activity was reinforced by the incentive
for conservation provided by a sharply increased
relative price of oil and other energy products.
At the same time, U.S. exports—including both
agricultural commodities and other products—
rose appreciably in real terms. Net exports thus
registered a noticeable increase during 1980, and
the U.S. current account moved into sizable
surplus in the second half of the year. The trade
and current-account developments contrasted
sharply with those of some other major industrial
countries and contributed to a substantial appre­
ciation of the dollar relative to continental Euro­
pean currencies over the course of the year.
Employment traced a path similar to that of
output in 1980—that is, down substantially in the
first half and up substantially in the second, with
little net change. There was some alteration in
the composition of employment over the course
of the year, however, with jobs in manufacturing
and construction decreasing and those in service
industries increasing. The combination of this
change in employment mix and a tendency for
employers to lag in adjusting their work forces to
lower levels of production contributed to a con­
tinued disappointing performance of labor pro­
ductivity—output per hour worked—which
showed no gain for the year.
With no moderating influence from the pro­
ductivity side, the rise in unit labor costs reflect­
ed directly the behavior of wages and other labor
expenses during 1980. In the nonfarm business
sector, average hourly compensation—which in­
cludes employer contributions for social insur­
ance and the cost of fringe benefits—rose 1 0
percent, a bit more than in 1979. However, this
measure, because it does not account for
changes in the mix of employment or in over­
time, probably understates the acceleration in
wage rates. For example, the index of average
hourly earnings for production and nonsupervisory personnel, which does include adjustments
for such factors, increased 9V2 percent in 1980
compared with 8 percent in 1979.
Wages typically are slow in responding to
economic slack, and given the large increases in
consumer prices in 1979 and 1980, there were
strong tendencies toward sizable catch-up wage
hikes even in the face of an unemployment rate

198 Federal Reserve Bulletin □ March 1981

that reached 7V2 percent last spring. This tenden­
cy manifests itself in a direct way when formal
cost-of-living escalator clauses exist. Such
clauses are most common in the manufacturing
sector, especially when there is collective bar­
gaining by large industrial unions, and the accel­
eration of wage rates was in fact relatively pro­
nounced in that sector.
The Growth o f M oney and C redit in 1980

In its report to the Congress last February, the
Board of Governors indicated the plans of the
FOMC regarding the growth of money and credit
in 1980. As in previous years, the FOMC set
desired ranges for the growth of several mone­
tary aggregates and of commercial bank credit.
Measured from the fourth quarter of 1979 to the
fourth quarter of 1980, the growth ranges were as
follows: M-1A, 3V2 to 6 percent; M-1B, 4 to 6 V2
percent; M-2, 6 to 9 percent; M-3, 6 V2 to 9V2
percent; and bank credit, 6 to 9 percent. 1 It was
recognized that legislative initiatives then pend­
ing in the area of financial regulation could alter
the desired rates of increase, as could any other
unanticipated developments that indicated the
prescribed growth rates were inconsistent with
the basic objectives of policy. As stated, howev­
er, the ranges suggested a clear deceleration of
money and credit growth from the pace of 1979—
a specification that appeared appropriate in
terms of both the near-term and long-term re­
quirements of anti-inflation policy.
As noted in the preceding section, the mone­
tary and credit aggregates grew quite rapidly in
the opening part of the year. Then, as economic
activity began to fall rapidly, the growth of
1.
M-l A is currency plus private demand deposits at
commercial banks net of deposits due to foreign commercial
banks and official institutions. M-1B is M-l A plus other
checkable deposits (that is, negotiable order of withdrawal
accounts, accounts subject to automatic transfer service,
credit union share draft balances, and demand deposits at
mutual savings banks). M-2 is M-lB plus savings and smalldenomination time deposits at all depository institutions,
shares in money market mutual funds, overnight repurchase
agreements (RPs) issued by commercial banks, and overnight
Eurodollar deposits held by U.S. residents at Caribbean
branches of U.S. banks. M-3 is M-2 plus large time deposits
at all depository institutions and term RPs issued by commer­
cial banks and savings and loan associations. Bank credit is
total loans and investments of commercial banks.



money and credit slowed markedly. Indeed, the
narrow monetary aggregates, M-l A and M-1B,
which are measures of the public’s transaction
balances, actually contracted significantly in the
second quarter. This decline, occurring as it did
at the same time that interest rates were falling
sharply, was considerably greater than would
have been expected on the basis of historical
relationships among money, income, and interest
rates. The weakness in the M-l measures tended
to restrain the growth of the broader monetary
aggregates. Bank credit meanwhile contracted
slightly.
At midyear, when the FOMC reassessed the
monetary growth ranges for 1980, there were
few, if any, signs of the then-incipient economic
recovery. The monetary aggregates, though
again on the rise, were either below or in the
lower portion of the previously announced
ranges. The Depository Institutions Deregulation
and Monetary Control Act of 1980 had been
signed into law by the end of March, but there
was no clear evidence yet of significant impact
on the behavior of the monetary aggregates. In
these circumstances, the FOMC reaffirmed the
ranges for money and bank credit that it had
adopted in February, but it did indicate that, if
the public continued to economize on the use of
cash as strongly as in the second quarter, M-l A
and M-1B might well finish the year near the
lower end of their respective ranges. 2 Such a
proviso was called for because a sustained down­
ward shift in the demand for money implies that a
given rate of monetary growth is more expan­
sionary in its impact on the economy than would
otherwise be the case.
Over the second half of the year, however, the
monetary aggregates and bank credit grew very
rapidly. There was a surprisingly swift and
strong turnaround in economic activity. And
simultaneously the public’s demand for money
retraced most of the evident downward shift of
the first half. Both of these developments may
have been associated with the phasing out of the
extraordinary credit restraint program at the end

2.
Previous episodes had occurred, particularly in the mid1970s, of lasting downward shifts in the demand for M-l
balances following rises in interest rates to new record levels.
Such interest rate movements evidently encouraged greater
efforts to economize on holdings of noneaming assets.

M onetary Policy R eport to Congress

of the second quarter. In retrospect, this pro­
gram seems to have played a greater role than
was apparent at midyear in influencing the par­
ticular patterns of spending and financial flows
that developed in the spring and summer.
Although the Federal Reserve resisted the
accelerating growth in money and credit—and
did succeed in bringing about a clear deceleration
in the latter months of the year—the growth of
the monetary aggregates on a fourth-quarter-tofourth-quarter basis in 1980 was generally near or
a bit above the upper ends of the ranges an­
nounced by the System. Bank credit growth was
within the range specified by the FOMC.
Considerable care must be exercised in assess­
ing the behavior of M-l A and M-1B. Last Febru­
ary when the ranges for the aggregates were set,
it was assumed that the growth rates of the two
aggregates would differ only by V2 percentage
point based on an expectation that, under pre­
vailing statute, growth in automatic transfer
service (ATS) and negotiable order of withdraw­
al (NOW) accounts would draw few funds from
demand deposits (depressing M-l A) and savings
deposits (boosting M-1B). With the passage of
the Monetary Control Act, however, which au­
thorized NOW accounts on a nationwide basis as
of December 31, 1980, commercial banks began
to promote ATS accounts more vigorously. As a
result, actual growth of ATS and NOW accounts
substantially exceeded the amount allowed for in
the FOMC ranges for M-l A and M-1 B.
M-l A increased 5 percent over the year ended
in the fourth quarter of 1980, close to the mid­
point of the FOMC’s range for that aggregate.
Meanwhile, growth in M-lB was 7V4 percent, 3/ 4
of a percentage point above the upper end of its
longer-run range. But if the FOMC’s ranges are
adjusted for current estimates of the actual im­
pact of shifting into ATS and NOW accounts, the
increases in both narrow aggregates are close to
the upper bounds of the FOMC’s ranges for
1980.
Although, conventionally, fourth-quarter aver­
ages have been adopted as the basis for measur­
ing annual growth in the money and credit aggre­
gates, the choice is somewhat arbitrary and is
only one of many possible approaches. More­
over, citing figures for any particular calendar
period does not necessarily give a clear sense of
the longer-term trends, which are more relevant



199

in assessing policy. For that reason, table 1 offers
measurements of annual growth on several
bases. Owing to the particular monthly patterns
over the past two years, the fourth-quarter-tofourth-quarter calculations show a lesser tenden­
cy toward deceleration in the growth of M-l A
and M-1B than do other measurements of the
1980 experience.
1. Growth of money and bank credit1
Percentage changes
Item

Bank
credit

M-1A

M-1B

M-2

M-3

7.4
(7.9)
5.0
(6.7)
5.0
(6.3)

8.2
(8.0)
7.7
(6.8)
7.3
(6.7)

8.4

11.3

13.3

9.0

9.8

12.3

9.8

9.9

7.9

7.1
(7.8)
5.2
(6.6)
4.1
(5.2)

8.2
(7.9)
7.5
(6.8)
6.5
(5.8)

8.3

11.2

13.6

8.9

9.4

11.5

9.7

10.3

8.9

7.7
(8.0)
5.2
(6.8)
4.6
(5.6)

8.2
(8.0)
7.8
(7.0)
6.4
(5.9)

8.9

11.7

12.3

8.9

10.3

13.4

9.1

8.6

8.3

Fourth quarter to
fourth quarter
1978..................................
1979..................................
1980..................................

December to
December
1978..................................
1979..................................
1980..................................

Annual average to
annual average
1978..................................
1979..................................
1980..................................

1. Numbers in parentheses are adjusted for the estimated impact of
shifting to ATS and NOW accounts from other assets and should give
a better indication of the underlying trend of monetary expansion.

The effects on M-2 of shifting into ATS and
NOW accounts likely are minor, since nearly all
the inflows to those instruments appear to be
from assets within this broad aggregate. For the
year as a whole, M-2 grew about 93/ 4 percent, 3/ 4
of a percentage point above the upper end of the
FOMC’s range. All of the growth in the non­
transaction component of M-2 occurred in those
assets offering market-related yields—primarily
6 -month
“ money market certificates,” 2 V2 year “ small-saver certificates,” and shares of
money market mutual funds. As of December,
these assets accounted for 45 percent of the
nontransactional component of M-2, compared
with 28 percent a year earlier. In earlier periods
of high interest rates, when such instruments did
not exist, M-2 tended to decelerate markedly as
disintermediation occurred, with savers shifting
funds into market instruments. In 1980, the

200

Federal Reserve Bulletin □ March 1981

2. Net funds raised and supplied in credit and equity markets
Billions of dollars
19801
Sector

1978

1979

1980p
Qi

Q2

Q3

Q4P

’
N et F unds Raised
Total, all sectors..........................................................
U.S. governm ent....................................................
State and local government..................................
Foreign......................................................................
Private domestic nonfinancial..............................
Business................................................................
Household............................................................
Domestic financial..................................................
Private intermediaries........................................
Sponsored credit agen cies................................
Mortgage pool securities ..................................

482
54
24
32
291
128
163
81
40
23
18

483
37
16
21
321
156
165
88
36
24
28

434
79
21
30
234
133
101
70
23
24
23

497
62
21
24
303
163
140
87
32
34
21

253
67
12
35
119
79
40
20
-1 6
16
20

454
99
24
27
231
133
98
73
33
12
28

534
89
27
33
281
155
126
104
44
36
24

482
20
15
40
51
-1
52
356
305
129
76
84
16
26
18
7

484
23
13
-6
81
10
71
373
308
121
56
90
41
29
28
8

435
26
20
22
29
10
19
338
285
104
57
98
26
25
23
5

498
29
18
-8
74
8
66
385
315
117
35
103
60
40
21
9

253
30
2
47
-5 1
-1 0
-4 1
225
179
-2
27
108
46
6
20
20

456
24
36
22
55
22
33
319
293
129
74
93
-3
24
28
-2 6

534
21
23
27
39
22
17
424
353

N et F unds S upplied
Total, all sectors..........................................................
U.S. government....................................................
State and local government..................................
Foreign......................................................................
Private domestic nonfinancial..............................
Business................................................................
Household............................................................
Domestic financial..................................................
Private intermediaries........................................
Commercial banking......................................
Thrift institutions............................................
Insurance and pension funds........................
Other2................................................................
Sponsored credit agen cies................................
Mortgage pool securities ..................................
Federal Reserve System ....................................

1. Seasonally adjusted annual rates.
2. Includes finance companies, money market funds, real estate

growing popularity of these relatively new assets
may well have drawn some funds into M-2 from
market securities such as Treasury bills, causing
M-2 to grow somewhat more rapidly than in the
preceding two years and also faster relative to
M-1B.
M-3 grew almost 10 percent over the four
quarters of 1980, ‘ / 2 percentage point above the
upper end of its longer-run range. Large-denomination time deposits expanded moderately at
commercial banks and thrift institutions during
the year; in the case of banks, which issue the
bulk of these instruments, the borrowing was
offset by a reduction of net liabilities to foreign
branches.
Bank credit grew about 8 percent in 1980.
Fluctuations in this measure followed the general
pattern of aggregate credit flows in the economy,
but they were exaggerated by changes in the
composition of business borrowing. During the
first quarter, nonfinancial firms avoided long­
term borrowing at record high interest rates and



94
86
2
32
24
15

investment trusts, open-end investment companies, and security
brokers and dealers,
p. Preliminary.

turned instead to the commercial banks for
funds. In fact, they appear to have borrowed
beyond their immediate needs in anticipation of
greater credit stringency. During the second
quarter, as bond rates dropped sharply and as
banks tightened their lending policies in response
to the special credit restraint program, corpora­
tions issued an unprecedented volume of long­
term securities and repaid outstanding bank
loans. During the summer months as interest
rates began to rise, the pattern of financing began
to reverse again, and in the fourth quarter,
businesses again deferred long-term borrowing
and tapped their banks for credit.
Broader measures of credit flows in the econo­
my also exhibited a considerable cyclical fluctu­
ation in 1980 (table 2). Total funds raised by all
sectors of the economy in credit and equity
markets fell by almost one-half in the second
quarter, then retraced most of that decline in the
third quarter. For the year as a whole, aggregate
funds raised were substantially less than in 1978

M onetary Policy R eport to Congress

and 1979. Commercial banks provided about the
same share of total credit flowing to all sectors as
in 1979, while the share of thrift institutions rose
somewhat.
Issu es in M onetary C ontrol

Monetary growth in 1980 was, on balance, fairly
close to the ranges specified by the FOMC. And,
more important, the Federal Reserve’s actions
clearly imposed a significant—and essential—
degree of restraint on the aggregate demand for
goods and services in the economy. Nonethe­
less, particularly in view of the magnitude of the
short-run swings in interest rates and financial
flows in the past year, questions have been
raised—inside as well as outside the Federal
Reserve—about the techniques of implementing
monetary policy and, especially, about the effi­
cacy of the new operating procedures adopted in
October 1979. These questions have been ad­
dressed in an intensive study of the recent peri­
od. A staff memorandum presenting an overview
of the findings of that study and an evaluation of
the new operating procedures is appended to this
report. 3
3.
The charts, appendixes, including “ Staff Study of the
New Monetary Control Procedure: Overview of Findings and
Evaluation,” by Stephen H. Axilrod, and staff papers for this
report are available on request from Publications Services,
Board of Governors of the Federal Reserve System, Wash­
ington, D.C. 20551.
The monetary control project staff papers are as follows:
Richard Davis, “ Monetary Aggregates and the Use of ‘Inter­
mediate Targets’ in Monetary Policy;” Jared Enzler, “ Eco­
nomic Disturbances and Monetary Policy Responses;” Jared
Enzler and Lewis Johnson, “ Cycles Resulting from Money
Stock Targeting;” Margaret Greene, “ The New Approach to
Monetary Policy—A View From the Foreign Exchange Trad­
ing Desk;” Dana Johnson and others, “ Interest Rate Vari­
ability Under the New Operating Procedures and the Initial
Response in Financial Markets;” Peter Keir, “ Impact of
Discount Policy Procedures on the Effectiveness of Reserve
Targeting;” Fred Levin and Paul Meek, “ Implementing the
New Procedures: The View From the Trading Desk;” David
Lindsey and others, “ Monetary Control Experience Under
the New Operating Procedures;” David Pierce, “Trend and
Noise in the Monetary Aggregates;” Lawrence Slifman and
Edward McKelvey, “The New Operating Procedures and
Economic Activity since October 1979;” Peter Tinsley and
others, “ Money Market Impacts of Alternative Operating
Procedures;” and Edwin M. Truman and others, “ The New
Federal Reserve Operating Procedures: An External Per­
spective.”



201

As a prelude to discussing the key points
raised by the staff work, it is useful to describe in
broad outline the general approach of the Federal
Reserve to monetary policy. For a number of
years, monetary aggregates have played a key
role as intermediate targets for policy, that is, as
variables standing midway in an economic chain
linking the proximate instruments of the Federal
Reserve—open market operations, the discount
window, and reserve requirements—to the varia­
bles of ultimate concern, such as production,
employment, and prices. Economists have de­
bated extensively the question of the optimal
intermediate target variable, with the controver­
sy centering on the virtues of monetary aggre­
gates versus interest rates. The System histori­
cally has, in effect, taken an eclectic view,
believing that it would be remiss in ignoring the
information provided by the movements of any
financial or economic variable. However, it has
perceived a clear value in focusing special atten­
tion on the behavior of the money stock, espe­
cially in an environment in which inflation is
such a prominent concern. A special role for the
monetary aggregates is, furthermore, dictated by
the requirement of the Humphrey-Hawkins act
that the Federal Reserve report to the Congress
on its objectives for monetary expansion.
Analysts of all schools agree that, over the
long run, inflation cannot persist without mone­
tary accommodation. Thus, careful attention to
the trend of monetary expansion is an absolutely
essential feature of responsible monetary policy.
In addition, however, in a shorter-run context,
monetary aggregates are attractive as intermedi­
ate targets because they provide a mechanism of
“ automatic stabilization.” When the economy
begins to expand too rapidly, the associated
increase in the quantity of money demanded for
transaction purposes comes into conflict with the
monetary target, and this results in a rise in
market rates of interest; the rise in interest rates,
in turn, damps the aggregate demand for goods
and services. Similarly, if there is a recessionary
impulse to the economy, the associated reduc­
tion in the demand for cash balances leads to an
easing of credit conditions that moderates the
impact of that impulse. Pursuit of an interest rate
target carries with it a greater danger that an
unanticipated impulse to the economy will tend

202

Federal Reserve Bulletin □ March 1981

to be fully accommodated, with greater inflation­
ary or recessionary consequence.
Open market operations are the major tool of
monetary control. Before October 1979, the ba­
sic approach employed by the System was to
supply or absorb reserves through open market
operations with an eye to holding short-term
interest rates—most immediately, the federal
funds rate—within a relatively narrow but chang­
ing band thought consistent with the desired
growth of the money stock. This method placed
considerable importance on the System’s ability
to predict the quantity of money the public would
wish to hold at given interest rates. This never
was an easy matter, but in 1979, as the advance
of prices accelerated and inflationary expecta­
tions became a more significant and volatile
factor affecting economic and financial behavior,
predicting the public’s desired money holdings at
given levels of nominal interest rates became
exceedingly difficult. As a consequence, in Octo­
ber the FOMC altered its technique of monetary
control, substituting the volume of bank reserves
for interest rates as the day-to-day guide in
conducting open market operations.
Under the approach adopted in October 1979,
the FOMC sets short-run targets for monetary
expansion, as it did previously, to guide oper­
ations between meetings. The staff then calcu­
lates corresponding paths for various reserve
aggregates. A path for total reserves is calculated
based on the expected relationship between re­
serves and the money stock—the so-called reserves-money multiplier. This relationship is
variable and not known with certainty because of
the differences in reserve requirements on var­
ious components of the monetary aggregates,
which shift in relative importance from week to
week; moreover, in addition to required re­
serves, depository institutions also hold a vary­
ing amount of excess reserves. A path for non­
borrowed reserves then is calculated by making
an allowance for the portion of total reserves
expected to be provided through borrowings at
the Federal Reserve Bank discount windows.
Between meetings of the FOMC, the Open
Market Desk focuses on achieving a given level
of nonborrowed reserves, the reserve measure
that is controllable through open market oper­
ations on a day-to-day basis. If the monetary



aggregates deviate from their prescribed growth
rates, the resultant movement in required re­
serves is reflected in an increase or decrease in
borrowing at the discount window. Owing to
administrative limitations imposed by the Feder­
al Reserve on the frequency, amount, and pur­
poses of borrowing, an increase in borrowing
puts upward pressure on the federal funds rate as
individual depository institutions bid more ag­
gressively in the market for the available supply
of nonborrowed reserves in an effort to shift the
need to borrow to other institutions. A decline in
borrowing has the opposite effect. The resultant
movements in short-term interest rates induce
portfolio adjustments by depository institutions
and the public that tend to move the money stock
back toward the targeted level. If it appears that
these automatic effects are not going to be
prompt enough or strong enough—as evidenced
in part by sustained deviations in total reserves
from their path—the System can reinforce them
by making adjustments in the path for nonbor­
rowed reserves that increase the upward or
downward pressures on money market interest
rates. Similar effects can be achieved through
changes in the discount rate, given the nonbor­
rowed reserves path.
The workings of this mechanism of monetary
control are illustrated clearly by the movements
in reserves and interest rates during 1980. During
the early part of the year, when the money stock
was running above the FOMC’s short-run target,
the volume of adjustment credit provided by the
discount window increased substantially while
the amount of nonborrowed reserves provided
through open market operations declined, partly
as a consequence of reductions in the nonbor­
rowed reserves path to hold down total reserves
and restrain the growth of money over time.
During this period the federal funds rate rose
sharply. Restraint was intensified by increases in
the basic discount rate and the introduction in
mid-March of a surcharge on frequent borrowing
by large banks.
As the monetary aggregates weakened in the
spring, the pattern of the first quarter was re­
versed. The System countered the weakness of
the aggregates by maintaining the supply of total
reserves; this required substantial injections of
nonborrowed reserves to offset the impact of the

M onetary Policy R eport to Congress

repayment of discount window borrowings. The
federal funds rate fell sharply.
The sharp plunge in interest rates, even though
it occurred against a backdrop of marked mone­
tary weakness and steep recession, did arouse
concerns in some circles about the System’s
commitment to anti-inflationary restraint. This
nervousness was evident not only in domestic
financial markets but in foreign exchange mar­
kets too. By and large, the foreign exchange
value of the dollar had fluctuated in a way that
represented a fairly direct response to the pro­
nounced relative movement of interest rates on
assets denominated in dollars or foreign curren­
cies. But as U.S. interest rates reached compara­
tively low levels, there was a sense of a growing
risk that downward pressures on the dollar might
cumulate.
In a way, the Federal Reserve was caught in an
expectational crossfire. On the one side, those
who concentrate on the money stock in assessing
policy feared that the System was being too
restrictive because the various measures of mon­
ey were slowing sharply or contracting; on the
other, some of those in the financial markets and
elsewhere who view interest rates as the indica­
tor of policy feared that the System was being
inflationary because rates were falling sharply.
The FOMC, in weighing the risks, decided to
exercise some caution in the latter part of the
spring by setting its short-run monetary growth
targets with a view to a gradual rather than an
immediate return to the longer-range path for the
year.
The picture soon changed dramatically, how­
ever, for by midsummer the monetary aggre­
gates—buoyed by the surprisingly strong turn­
around in economic activity—were rising
rapidly. And as required reserves began to ex­
ceed nonborrowed reserves, borrowing and in­
terest rates climbed. As in the first quarter,
pressures on money market interest rates were
reinforced by reductions in the path for nonbor­
rowed reserves and by increases in the discount
rate and imposition of surcharges on frequent
borrowing. Borrowing and the federal funds rate
continued to rise until mid-December when a
drop in the money stock relieved some of the
pressure on reserve positions.
The staff study has examined the experience of



203

1980 in considerable detail in an effort to assess
the causes of the extreme variability of money
and interest rates in 1980 and the efficacy of the
new reserves-oriented operating procedure in
achieving the objectives of policy. Certain key
conclusions of the study may be highlighted.
1. The year 1980 was one of extraordinary
variability in money and nominal interest rates.
In the case of money, however, it is important to
note that comparisons with past years are com­
plicated by the fact that monetary data for those
periods have been considerably smoothed as
additional information has been obtained on
changes in seasonal patterns. If the 1980 figures
are compared with the initial figures for earlier
years, the difference in monetary variability is
substantially reduced. Still, after making such
allowances, it appears that money has been
somewhat more variable over the past year,
especially on a monthly or quarterly basis—
though, as far as can be judged from available
data, remaining within the range of foreign expe­
rience with money-stock variability.
2. Much of the variability—certainly the
broad swings—in money and interest rates since
October 1979 was attributable to an unusual
combination of economic circumstances and not
to the new operating procedures per se. The
“ real” and financial sectors of the economy
were subjected to unusual disturbances in 1980.
The imposition and subsequent removal of credit
controls, especially, appear to have had a major
impact on the demands for money and credit and
to have strongly affected the behavior of money
and interest rates in the second and third quar­
ters.
3. Simulation exercises utilizing several mod­
els of the money market provided no clear evi­
dence that, under present institutional arrange­
ments, alternative operating techniques—using,
for example, total reserves or the monetary base
instead of nonborrowed reserves as an operating
target—would improve short-run monetary con­
trol.
4. Clearly, efforts to limit severely deviations
in money from its longer-run growth path would
require acceptance of much more variable short­
term interest rates.
5. Short-run variability in the monetary aggre­
gates does not appear to involve significant im­

204

Federal Reserve Bulletin □ March 1981

pacts on the behavior of the economy. Weekly
and monthly changes in the monetary aggregates
are inherently quite “ noisy.” Moreover, avail­
able models suggest that, because of the relative­
ly long response lags involved, sizable quarterly
(or even semiannual) fluctuations in monetary
growth—if offsetting—do not leave an apprecia­
ble imprint on movements in output and prices.
6 .
The federal funds rate has been more vari­
able since October 1979, as would be expected
with use of a reserves operating target, but in
addition very short-run fluctuations in other mar­
ket rates—both short- and long-term—also have
been larger in magnitude than formerly. These
rates of interest have exhibited higher correla­
tions than previously with movements in the
federal funds rate. The reasons for this closer
correlation between the federal funds and other
rates in the very short run are not entirely clear,
and it is not certain that such a pattern will
prevail in the future. But, in any event, there are
few signs that the resulting variability has im­
posed appreciable costs in terms of reduced
efficiency of financial markets or of increased
costs of capital in the period analyzed by the
study. Considerable difficulties arise in separat­
ing the effects of the new operating technique
from those of other factors. However, it does
appear that much of the strain on financial insti­
tutions and many of the changes in financial
practices observed in the past year were related
to the broad cyclical pressures on interest rates
during the year, caused by accelerated inflation
and heightened inflationary expectations, and to
the changes in credit demands associated with
the behavior of economic activity.
The FOMC has reviewed the staff’s work.
Fundamentally, the research suggests that the
basic operating procedure represents a sound
approach to attaining the longer-run objectives
set for the monetary aggregates. However, the
FOMC and the Board of Governors will be
considering the practicability of modifications
that might reduce slippages between reserves
and money, without unduly increasing the risk of
an unnecessarily heightened variability of inter­
est rates. These modifications include the possi­
bility of prompter adjustment of nonborrowed
reserve paths or of the discount rate at times
when, in association with undesired movements



in money, the levels of borrowing and, conse­
quently, of total reserves are running persistently
stronger or weaker than projected. In addition,
the Board has already indicated its inclination to
switch from the present system of lagged reserve
accounting to a system in which required re­
serves are posted essentially at the same time as
deposits; it is continuing to study the practical
merits of such a system to ensure that the
operating problems created for depository insti­
tutions and the Federal Reserve and the poten­
tially increased volatility of the federal funds rate
would not outweigh the possible benefits in
terms of tighter short-run monetary control.
The FOMC has continued to set broad ranges
of tolerance for money market interest rates—
generally specified in terms of the federal funds
rate. These ranges, however, should not be
viewed as rigid constraints on the Open Market
Desk in its pursuit of reserve paths set to achieve
targeted rates of monetary growth. They have
not, in practice, served as true constraints in the
period since October 1979, as the FOMC typical­
ly has altered the ranges when they have become
binding. But, in a world of uncertainty about
economic and financial relationships, the ranges
for interest rates have served as a useful trigger­
ing mechanism for discussion of the implications
of current developments for policy.
The reserves operating procedure—or any
modification of it—needs to be viewed in the
context of a number of practical considerations
that affect the basic targets for the monetary
aggregates and the process of attaining them.
First, targets need to recognize the lags in the
adjustment of wages and prices that may limit the
speed with which noninflationary rates of mone­
tary expansion can be attained without unduly
restraining economic activity. Second, the po­
tential for costly disturbances in domestic finan­
cial or foreign exchange markets may occasional­
ly require short-run departures from longer-run
monetary targets. Third, precise month-bymonth control of money is not possible, nor is it
necessary in terms of achieving desirable eco­
nomic performance. Finally, uncertainties about
the relationship between money and economic
performance suggest the desirability of a degree
of flexibility in the targets—including the use of
ranges for more than one measure of money—

M onetary Policy R eport to Congress

and the potential need to alter previously estab­
lished targets.
M o n e t a r y P o l ic y a n d the P r o s p e c t s
f o r the E c o n o m y i n 1981
The F ederal R e se rve 's O bjectives
fo r the G row th o f M oney and C redit

In its midyear report last July, the Federal Re­
serve indicated to the Congress that its policy in
1981 would be designed to maintain restraint on
the expansion of money and credit. Nothing has
occurred in the intervening months to suggest the
desirability of a change in that basic direction.
Events have only served to underscore the im­
portance of such a policy—and of complemen­
tary restraint in the fiscal dimension of federal
policy as well.
Few would question today the virulence of the
inflation that is afflicting the economy or the
urgency of mounting an effective attack on the
forces that are sustaining inflation. The rapid rise
of prices is the single greatest barrier to the
achievement of balanced economic growth, high
employment, domestic and international finan­
cial stability, and sustained prosperity. The
experience of the past year—the stresses and
dislocations that have occurred—attests to the
difficulty of dealing with inflationary trends that
have been many years in the making, but it does
not indicate that there is any less need to do so.
Indeed, the need has become more urgent, for as
price increases continue, the public’s expecta­
tions of inflation become more and more firmly
embedded, and those expectations in turn con­
tribute to the stubborn upward momentum of
wages and prices.
Persistent monetary discipline is a necessary
ingredient in any effort to restore stability in the
general price level. To be sure, other areas of
policy are also important, but it is essential that
monetary policy exert continuing resistance to
inflationary forces. The growth of money and
credit will have to be slowed to a rate consistent
with the long-range growth of the nation’s capac­
ity to produce at reasonably stable prices. Realis­
tically, given the structure of the economy, with
the rigidities of contractual relationships and the



205

natural lags in the adjustment process, that rate
will have to be approached over a period of years
if severe contractionary pressures on output and
employment are to be avoided.
The ranges of monetary expansion specified
this month by the FOMC for the year ending in
the fourth quarter of 1981 reflect these consider­
ations. They imply a significant deceleration of
growth in the monetary aggregates from the rates
observed in 1980 and other recent years. The
ranges are as follows: for M-1A, 3 to 5l/2 percent;
for M-1B, 3V2 to 6 percent; for M-2, 6 to 9
percent; 'and for M-3, 6 1/ 2 to 9l/2 percent. It
should be emphasized that, owing to the intro­
duction of NOW accounts on a nationwide basis
at the end of 1980, the monetary ranges have
been specified on a basis that abstracts from the
impact of the shifting of funds into interestbearing checkable deposits; only by adjusting for
the distorting effects of such shifts can one obtain
a meaningful measure of monetary growth. The
FOMC also adopted a corresponding range of 6
to 9 percent for commercial bank credit.
The ranges for M-l A and M-1B are V2 percent­
age point less than those the Federal Reserve
sought in 1980. Since realized growth last year,
after adjustment for the impact of shifting into
interest-bearing checkable deposits, was close to
the upper ends of the stated ranges for the
period, the new ranges are consistent with a
deceleration of considerably more than V2 per­
centage point.
The actual observed changes in M-l A and
M-1B will differ by a wide margin; in fact, it is
quite possible that, because of the movement of
funds from demand deposits to NOW accounts,
M-l A could contract this year, while M-1B could
grow more rapidly in reflection of funds moving
into NOW accounts from savings deposits and
other assets. It must be stressed that valid com­
parison of actual year-to-year growth has to
allow for this institutional change.
The behavior of M-1A and M-1B thus far this
year has reflected this pattern, but in an exagger­
ated degree because of the large initial transfer of
funds to NOW accounts. The next section dis­
cusses in some detail the distortions caused by
shifting to NOW accounts and the expected
behavior of M-1A and M-1B. As the discussion
indicates, any estimates of the extent and charac­

206

Federal Reserve Bulletin □ March 1981

ter of the prospective shift into NOW accounts
must be tentative. The Federal Reserve will be
monitoring the shifting into interest-bearing
checkable deposits as the year progresses and
will be assessing its impact on the expansion of
the monetary aggregates. From time to time, the
System will report its estimates of the adjusted
growth of M-l A and M-1B so that the public and
the Congress can better assess the consistency of
monetary expansion with the FOMC’s stated
objectives.
The 1981 range for M-2 is the same as that in
1980; however, the upper end of the range is
roughly 3/ 4 percentage point less than the actual
growth recorded in 1980. A reduction in the
range does not appear appropriate at this time in
light of what is known about the relationships
among the various monetary measures, as affect­
ed by public preferences for various types of
assets and by expected economic and institution­
al circumstances. In fact, there is a distinct
likelihood that, consistent with the planned de­
cline in the growth of the narrower aggregates,
growth in M-2 in 1981 will be in the upper half of
its 6 to 9 percent range. With the changes in
regulatory ceilings that have made small-denomi­
nation time deposits more attractive in compari­
son to market instruments and with the growing
popularity of money market mutual funds, the
nontransactional component of M-2 is likely to
continue growing quite briskly. Moreover, if the
tax cuts proposed by the President result in a
marked increase in the proportion of income
saved, this saving may contribute to relatively
robust growth in M-2, which has, in any event,
tended in recent years to approximate the in­
crease in nominal GNP.
The range for M-3 in 1981 is the same as that
for 1980, but again is below the actual growth
experienced last year. The deceleration would
reflect the slower expansion specified for M-2,
which accounts for more than three-quarters of
the broader aggregate. Large-denomination time
deposits at commercial banks—the other major
component of M-3—likely will expand moderate­
ly again this year, but much will depend on the
patterns of credit flows that emerge. The growth
of bank credit is now expected to be about the
same as in 1980. Household borrowing at banks
could increase, especially in the consumer in­
stallment area, where use of credit was severely



damped for a time last year by credit controls.
However, nonfinancial firms likely will wish to
rely less heavily on bank borrowing than they did
in 1980, in light of the deterioration of balancesheet liquidity that they have already exper­
ienced. Indeed, should credit market conditions
be such as to encourage a substantial funding of
short-term debt by corporations, commercial
banks might play a lesser role in the overall
supply of credit and M-3 could be damped by
reduced bank reliance on large time deposits. On
the other hand, if conditions in the bond markets
are not conducive to long-term financing, then
bank credit and M-3 could be relatively strong.
Im pact o f N ation w ide N O W A ccounts
on M onetary G row th in 1981

As noted in the preceding section, the behavior
of M-l A and M-1B will be greatly affected this
year by the advent, under the Monetary Control
Act of 1980, of nationwide availability of NOW
accounts and other interest-bearing checkable
deposits. The phenomenon is qualitatively simi­
lar to what occurred in 1980 when growth in
M-l A was depressed and growth in M-1B en­
hanced by the shifting of funds into ATS ac­
counts—but the distortions in 1981 will be quan­
titatively much greater.
With the introduction of a new financial instru­
ment like the NOW account, a broad adjustment
of the public’s asset portfolios may occur. Under
the present circumstances, however, it seems
reasonable as a practical matter to expect that
the major impact will be a shifting of funds into
the new accounts from existing nonearning de­
mand deposits and from the interest-earning as­
sets included in M-2 (especially highly liquid,
relatively low-yielding savings deposits). The
analysis of experience in past years with NOW
accounts in the northeastern part of the country
and with ATS accounts throughout the nation
indicates that flows from demand and savings
deposits have accounted for the great bulk of the
growth of interest-bearing accounts. Further­
more, various surveys and other analyses have
indicated that in the past roughly two-thirds of
the funds flowing into ATS and NOW accounts
have come from demand deposits and roughly
one-third from savings deposits.

Monetary Policy R eport to Congress

During January, a somewhat larger share of
the funds flowing into interest-bearing checking
deposits appears to have come from demand
deposits—perhaps about 75 to 80 percent, with
only about 20 to 25 percent coming from savings
deposits (or, to a very limited extent, other
sources). This change from past patterns appears
to reflect a relatively fast adjustment on the part
of holders of large-denomination demand deposit
balances at commercial banks. The sources of
subsequent growth in interest-bearing checkable
deposits are expected to be more along the lines
of the past two-thirds-one-third break.
Depository institutions have marketed the new
accounts very aggressively, many of them lining
up a sizable number of customers before the end
of 1980. Since December 30, the net growth of
interest-bearing checkable deposits already has
totaled more than $22 billion. Obviously it is
extremely difficult to forecast the further growth
of interest-bearing checkable deposits over the
remainder of the year. A working assumption
would be that the net increase in such deposits
this year will amount to somewhere between $35
billion to $45 billion, which would mean that half,
or a little more than half, of the funds already
have been shifted. If the shares of funds coming
from demand and savings deposits move prompt­
ly to a two-thirds-one-third proportion, the re­
sult will be a depressing effect on M-1A growth
of 7 to 8 percentage points and an increase of 2 to
3 percentage points in M-lB growth. Taking the
midpoints of these estimates and applying them
to the basic ranges specified by the FOMC for
monetary growth this year, the observed change
in M-l A from the fourth quarter of 1980 to the
fourth quarter of 1981 would be - 4 l/ 2 to - 2
percent and that in M-1B would be 6 to 8 V2
percent.
As already indicated, the growth of interestbearing checkable deposits in January was ex­
traordinarily rapid and resulted in an extreme
divergence of M-1A and M-1B movements. Ob­
served M-l A contracted at a 37 V2 percent annual
rate in January, while M-1B increased at a I 2 V4
percent annual rate. On the assumption that
three-quarters to four-fifths of the funds flowing
into interest-bearing checkable deposits came
from demand deposits, both M-1A and M-1B, on
an adjusted basis, showed only small growth in
the early weeks of this year.




207

Outlook fo r the E conom y

The economy entered 1981 on an upward trajec­
tory, extending the recovery in activity from last
year’s brief but sharp recession. January saw
further large gains in retail sales, employment,
and industrial production. On the whole, the
demand for goods and services has continued to
prove more buoyant than most analysts had
expected. Unfortunately, at the same time infla­
tion has not abated.
The persistence of intense inflationary pres­
sures jeopardizes the continuity of economic
expansion over the remainder of the year. More­
over, unless the rise of prices slows, there can be
little hope of an appreciable, sustained easing of
interest rates or of a substantial improvement in
the balance sheets of the many units of the
economy that already have experienced a dete­
rioration in their financial condition.
The near-term prospects for prices are not
favorable. In the months immediately ahead, the
major price indexes will reflect the effect of poor
agricultural supply conditions on food prices and
the impact of higher OPEC charges and domestic
decontrol on energy prices. Increases in the
consumer price index, furthermore, will reflect—
in a way that exaggerates the true change in the
average cost of living—the rise in mortgage inter­
est rates that occurred in the latter part of 1980.
Aside from these special factors, the basic
trend of prices is linked closely to the behavior of
unit labor costs, which constitute the largest
element in costs of production. As noted earlier,
poor productivity performance has contributed
to rising costs. It is also quite clear that wage
demands have been sizable. Despite the accel­
eration in wage increases that has occurred, the
wages of many workers have failed to keep pace
with the upward movement of prices in the past
few years. This development was virtually inevi­
table in light of the decline in productivity and
the adverse terms-of-trade effects of the tremen­
dous increase in foreign oil prices. So long as
those conditions continue, the average worker
cannot anticipate a rising standard of living, and
attempts to “ make up” losses in real income will
be reflected in strong cost and price pressures.
The condition of labor markets is, of course, a
factor affecting wage decisions. Despite the fact
that the overall unemployment rate stands at 7J/ 2

208

Federal Reserve Bulletin □ March 1981

percent, scarcities of skilled workers have oc­
curred in some sectors of the economy. But,
even when slack in labor demand does exist, its
impact on wages is rather slow in emerging;
wages appear to have a strong momentum rooted
in inflationary expectations, which are based to a
great extent on past experience as well as on
attempts to maintain real income. Workers’ wage
demands are influenced by expectations about
prices, as well as by patterns established in
previous wage bargaining. Meanwhile, employ­
ers condition their wage offers in good measure
by their own sense of the prospects for inflation
and of whether they will be able to pass along
higher compensation costs by increasing prices.
This momentum must be turned in a favorable
direction. To do so will require a commitment to
monetary and fiscal restraint that is firm and
credible, and a direction of other governmental
policies toward fighting inflation. Labor and
management must be persuaded that the infla­
tionary process will not be accommodated—that
wage and price decisions based on an anticipa­
tion of rapid inflation will prove inimical to their
ability to maintain employment and sales vol­
ume. Put more positively, they have to be con­
vinced that moderation in their individual wage
and price actions will not put them at a relative
disadvantage and will in fact produce a better
economic environment for everyone.
Such an alteration of the expectational climate
will not be easy to achieve. But it is important to
do so. For, to the extent that those attitudes can
be changed, the short-run costs of restraint on
aggregate demand, in the form of economic
slack, will be ameliorated. Conversely, prolonga­
tion of high wage and price demands would come
into conflict with needed monetary and fiscal
restraint, aggravating economic difficulties. In
any event, once expectations are turned, further
progress toward price stability should come
more easily so long as excessive pressures on
productive capacity are avoided.
The policy of monetary restraint adopted by
the Federal Reserve is intended to contribute to
the process of breaking the momentum of infla­
tion. Fiscal policy also has a crucial role to play.




3. Economic projections for 1981
Item

Projected 1981
Adminis­
tration

Actual
1980

FOMC

9.5
- .3
9.8

9 to 12
-m to m
9 to 10‘/ 2

Changes from fourth
quarter to fourth
quarter, percent
Nominal G N P ..............
Real G N P ....................
GNP deflator................

11.0
1.4
9.5

Average level in fourth
quarter, percent
Unemployment rate. . .

7.5

8 to 8»/2

7.7

Cuts in federal taxes potentially can help to
invigorate private capital formation and thereby
enhance productivity, reduce costs, and pave the
way for faster economic growth. But it is impor­
tant that government spending be held firmly in
check at the same time so that aggregate demand
does not become excessive and so that the
pressures of government demands on the credit
markets do not impede the financing of private
investment.
The members of the FOMC, in assessing the
economic outlook, have recognized the possibil­
ity of some reduction this year in business and
personal income taxes and some initial steps in
the longer-range effort toward slowing the
growth of federal expenditures. Given these
working assumptions, the individual members of
the FOMC have formulated projections for eco­
nomic performance in the current year that gen­
erally fall within the ranges indicated in table 3.
As may be seen, the FOMC members’ projec­
tions for output and inflation encompass those
that underlie the administration’s recent budget
proposal.
The members of the FOMC see inflation as
remaining rapid in 1981, although not so rapid
throughout the year as seems likely to be the
case early in the period. The failure of inflation to
slow more quickly and the large budgetary defi­
cits in prospect for the year are seen as resulting
in continued strong demands for money and
credit and in the maintenance of relatively high
interest rates. Against this backdrop, economic
activity is likely to show only intermittent
strength, and unemployment probably will rise
between now and the end of the year.
□

209

Treasury and Federal Reserve
Foreign Exchange Operations
This 38th joint report reflects the Treasury-Fed­
eral Reserve policy o f making available addition­
al information on foreign exchange operations
from time to time. The Federal Reserve Bank of
New York acts as agent for both the Treasury
and the Federal Open Market Committee o f the
Federal Reserve System in the conduct o f foreign
exchange operations.
This report was prepared by Scott E. Pardee,
Manager o f Foreign Operations o f the System
Open Market Account and Senior Vice President
in the Foreign Function o f the Federal Reserve
Bank o f New York. It covers the period August
1980 through January 1981. Previous reports
have been published in the March and Septem­
ber B u l l e t i n s o f each year beginning with
September 1962.

During the six-month period under review, the
U.S. dollar came into heavy demand in the
exchange markets and advanced sharply against
many major currencies.
The dollar’s underlying strength reflected the
relatively favorable current-account position of
the United States. The current account had
swung from substantial deficit in the first half of
1980 to surplus in the second half of the year. By
contrast, many other major industrial countries
continued to record massive current-account
deficits, swollen by the increase in their oil
import bills following the runup of international
oil prices in 1979-80.
In addition, the dollar proved increasingly
attractive as an investment medium. As the U.S.
economy snapped back from the sharp recession
of early 1980, the demand for money and credit
in the United States also rebounded strongly.
With the Federal Reserve continuing to adhere to
its approach—adopted in October 1979—of plac­
ing primary emphasis on bank reserves rather
than on interest rates to control the growth of the
money and credit aggregates, interest rates in the




United States were bid up once again to new
peak levels. Meanwhile, the economies of most
other major countries were showing slower
growth than before or even moving into reces­
sion, with marked increases in unemployment.
This development generated strong pressures on
the authorities to ease up on policies, including
monetary policies, even as inflation rates and, in
most cases, current-account deficits still showed
little sign of improving. The authorities were
reluctant to have their interest rates rise in pace
with those in the United States. Consequently,
as interest differentials opened up in favor of the
dollar, increasing volumes of funds moved into
dollar-denominated assets.
Through late 1980, the selling pressures were
mainly on Western European currencies, in par­
ticular the German mark. In Europe, currentaccount deficits continued to be large and inter-

1.

Federal Reserve
reciprocal currency arrangements
Millions of dollars
Amount of facility
Institution
Jan. 1, 1980
250

Jan. 31, 1981

Austrian National B a n k ....................
National Bank of Belgium ..............
Bank of Canada ................................
National Bank of Denm ark..............
Bank of England ................................
Bank of France ..................................
German Federal Bank ......................

250

2,000
6,000

2,000
6,000

Bank of Italy ......................................
Bank of Japan ....................................
Bank of Mexico ................................
Netherlands B a n k ..............................
Bank of Norway ................................
Bank of Sweden ................................
Swiss National Bank ........................

3,000
5,000
700
500
250
300
4,000

3,000
5,000
700
500
250
5001
4,000

Bank for International Settlements
Swiss francs/dollars ......................
Other authorized European
currencies/dollars ..................

600

1,000
2,000

1,000
2,000

250
3,000

250
3,000

600

1,250

1,250

30,100

30,300

1. Increased by $200 million effective May 23, 1980.

210

2.

Federal Reserve Bulletin □ March 1981

Drawings and repayments under reciprocal currency arrangements, August 1, 1980-January 31, 19811
Millions o f dollars equivalent; drawings, or repayments (-)
Activity by the Federal Reserve System

Transactions with

Bank o f France2 ........................
German Federal Bank2 ...........
Swiss National B a n k ...............
T o ta l.............................................

1980

Commitments,
Jan. 1, 1980

Ql

0
3,150.4
0
3,150.4

Q2
0

r
316.0
\ - 3,489.2

{

—22.7}

r
338.7
( - 3 ,5 1 1 . 9

January
1981
Q3

Commitments,
Jan. 31, 1981

Q4

100.2

r
60.6 1
{ - 5 4 .6 }

-1 1 0 .5

0

0

996.1
-1 3 2 .4

265.71
- 8 7 6 .2 /

-2 6 0 .3

0

0

0
1,096.2
-1 3 2 .4

{ -n i}

337.5i
-9 4 2 .1 /

0
-370.8

0

0

0

0

A ctivity by the BIS and foreign central banks

Bank drawing on System

Bank o f S w e d e n ...............
Bank for International
Settlements (against
German marks)3 ___
T o ta l.....................................

Outstanding,
Jan. 1, 1980

1980

Ql

Q3

Q4

January
1981

200.0
192.0
- 9 7 .0
192.0
- 9 7 .0

1. Because o f rounding, figures may not add to totals. Data are on a
value-date basis.
2. Data on repayments o f swap commitments with the Bank of

est rates, while high relative to inflation rates,
were generally below those in the United States.
The pound sterling was an exception; the United
Kingdom moved into a strong current-account
position and maintained high interest rates that
proved attractive to investment flows. The Japa­
nese yen advanced sharply, on a substantial
improvement in Japan’s current-account position
and on heavy demands for yen-denominated
assets.
In early 1981 the dollar’s advance became
more generalized, even though U.S. interest
rates had edged off from their peaks. The release
of the U.S. hostages by Iran lifted one element of
uncertainty for the dollar, while the unfreezing of
a part of Iran’s assets took place without disrupt­
ing the exchanges. Moreover, the market reacted
positively to the sense of determination shown
by the Reagan administration to deal with infla­
tion and to revitalize the U.S. economy. By late
January, market sentiment became extremely
bullish toward the dollar. At the same time,
market participants were inclined to interpret
developments affecting other major currencies in
a pessimistic light. In this atmosphere, markets
became increasingly one way, with the dollar
rising virtually every day.



Q2

50.01
-1 4 5 .0 f
50.01
-1 4 5 .0 /

Outstanding,
Jan. 31, 1981

200.0

0

0

200.0

200.0

France and the German Federal Bank include revaluation adjustments
o f $34.3 million for swap renewals during 1980.
3. BIS drawings and repayments of dollars against European cur­
rencies other than Sw iss francs to meet temporary cash requirements.

Over the six-month period ending January 31,
the dollar had risen 19 percent against the Ger­
man mark and 16 to 20 percent against other
currencies within the joint float of the European
Monetary System (EMS). Sterling, which had
risen 51/: percent, had dropped back for a net gain
of IV2 percent on balance. The yen also eased
back from its highs but still rose 10 percent for
the six-month period. The Canadian dollar,
which had dropped to a 40-year low in Decem­
ber, was steadier after the year-end on signs of
an improvement in Canada’s external position
and on the sharp rise in interest rates that had
occurred in December.
In foreign currency operations, U.S. authori­
ties were active throughout the period, mainly as
buyers of currencies. As the dollar firmed against
the German mark in August, the Federal Reserve
and the Treasury began to acquire, in the market
and through correspondents, the currencies
needed by the System to repay swap debt and by
the Treasury to cover its short position under its
medium-term mark obligations. These oper­
ations continued in substantial volume through
the fall.
By the end of October, the System had repaid
in full the remaining $879.7 million equivalent of

211

Foreign Exchange Operations

3.

U.S. Treasury securities,
foreign currency denominated1
Millions o f dollars equivalent; issues, or redemptions ( - )
1980

Commit­
ments
Jan. 1,
1980

Ql

Public series
G e r m a n y ...............
Sw itzerland...........

4,065.7
1,203.0

1,168.0
0

0
0

0
0

0
0

0
0

5,233.6
1,203.0

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

5,268.6

1,168.0

0

0

0

0

6,436.6

Issues

Commit­
ments
Jan. Jan. 31,
Q2 Q3 Q4 1981
1981

1. Data are on a value-date basis. Because o f rounding, figures may
not add to totals.

swap debt to the German Federal Bank and
$166.3 million of swap drawings on the Bank of
France outstanding as of July 31, 1980. By early
December the Treasury had acquired sufficient
marks to cover its medium-term notes in that
currency. Thereafter, with the dollar still in
strong demand, the U.S. authorities continued
on balance to acquire currencies. Operations
were conducted on days in which the exchange
rates were particularly volatile, and on some
occasions the Trading Desk placed simultaneous
bid-and-asked prices to settle the market. Never­
theless, with the one-way movement into dollars
that developed, by late January the U.S. authori­
ties were again purchasing marks virtually every
day.
To summarize, over the six months, the U.S.
authorities operated in German marks, French
francs, Swiss francs, and Japanese yen. In
marks, the Federal Reserve and Treasury pur­
chased a total of $7,569.5 million equivalent in
the market and from correspondents and sold
$368.2 million in the market. In French francs,
the Federal Reserve purchased $158.6 million in
the market and from correspondents to repay the
swap debt. In Swiss francs, the Federal Reserve
and the Treasury bought $192.2 million equiv­
alent, which was added to balances. In yen, the
Federal Reserve sold $50.0 million equivalent as
part of a coordinated intervention operation ear­
ly in January. Finally, in January the central
bank of Sweden drew $200 million under its swap
line with the Federal Reserve. U.S. foreign cur­
rency reserves stood at $10.7 billion at the end of
January, up from $5.4 billion at the end of July.
From August through January, the Federal
Reserve realized profits of $18.6 million on its



foreign exchange operations. The U.S. Trea­
sury’s Exchange Stabilization Fund realized
losses of $3.7 million on its operations in the
market. Also, the Treasury’s general account
incurred losses of $170.2 million, reflecting annu­
al renewals at current market rates of the agree­
ment to warehouse with the Federal Reserve
proceeds of Treasury securities denominated in
marks and Swiss francs. These losses will be
recovered by the Treasury’s general account
when it reacquires these currencies for the re­
demption of the securities. As of the end of the
period, with the dollar having risen sharply, the
Federal Reserve showed valuation losses of
$150.6 million on its foreign exchange assets
while the Exchange Stabilization Fund showed
valuation losses of $826.3 million on its foreign
exchange assets. The Treasury’s general account
showed valuation profits of $781.1 million related
to the outstanding issues of securities denominat­
ed in foreign currencies of $6,436.6 million equiv­
alent.
During the period under review, U.S. authori­
ties changed certain provisions of swap agree­
ments with foreign central banks. Since July 1973
the exchange risk on drawings by the Federal
Reserve or the U.S. Treasury had been shared
evenly with the foreign central bank on which the
drawing was being made. This risk-sharing pro­
cedure did not apply to drawings by other central
banks. In addition, since the inception of the
swap agreements in 1962, the interest rates paid
on any drawings, either by the Federal Reserve
or the Treasury or by the foreign central banks,
were based on the current rates for U.S. Trea­
sury bills. Under procedures beginning this year,
4.

U.S. Treasury and Federal Reserve foreign
exchange operations1
N et profits or losses ( - ) in millions o f dollars
U .S . Treasury
Period

Federal
Reserve

1980—Q l .........................................
14.1
7.7
Q 2 .........................................
1 .1
Q 3 .........................................
6.2
Q 4 .........................................
January 1981...................................
6.2
Valuation profits and losses on
outstanding assets and liabil­
ities as o f January 31, 1981
-1 5 0 .6
1. Data are on a value-date basis.

Exchange
Stabilization
Fund

General
account

0
42.0
3.9
- 3 .1
-.7

64.9
0
6.3
- 2 5 .9
-1 4 4 .3

-8 2 6 .3

781.1

212

Federal Reserve Bulletin □ March 1981

the Federal Reserve and the U.S. Treasury, like
their counterparts in the swap arrangements, will
take the full exchange risk on their swap draw­
ings. They will also pay a rate of interest based
on the creditor country’s Treasury bill rate or the
nearest equivalent market rate.
Ge r m a n M a r k

By mid-1980 the German authorities were con­
fronted with an emerging policy dilemma. Eco­
nomic activity was contracting as recessionary
trends abroad led to a sharp slowdown in export
growth at the same time that domestic demand
faltered. Unemployment was rising. Inflation,
after peaking at 6 percent, began to recede and
the growth of central bank money had slowed to
the lower end of the 5 to 8 percent annual target
range. These developments had permitted the
German Federal Bank to begin cautiously to ease
money market conditions by providing some
liquidity on a temporary basis over the summer
months. But the central bank resisted domestic
pressures to reduce official interest rates out of
concern that a relaxation of the overall restric­
tive stance of monetary policy before inflation­
ary expectations were firmly laid to rest would
undercut the progress already under way in
bringing inflation under control.
Moreover, the current-account deficit, running
in excess of DM 25 billion at an annual rate, was
in deeper deficit than had been projected earlier.
German interest rates, though high by domestic
standards, remained low relative to interest rates
elsewhere. As a result, the goal of financing the
current-account deficit with a combination of
private and public inflows of capital, and thereby
avoiding a drain on Germany’s foreign exchange
reserves, had met with only limited success.
Despite substantial foreign official placements
with the German Federal Bank and revaluation
adjustments to its gold and foreign currency
holdings with the European Monetary Fund,
Germany’s gross foreign exchange reserves de­
clined $1.6 billion in the first seven months of
1980 to stand at $45.7 billion at the end of July.1
1. Foreign exchange reserves for Germany and other
members of the EMS, including the United Kingdom, incor­
porate adjustments for gold and foreign exchange swaps



In the exchanges, the German mark had
moved up from its lows of last April in the wake
of declining U.S. interest rates. On occasion
during August the mark still came into bursts of
demand amid concerns about the outlook for
inflation in the United States. As in preceding
months, the authorities in the United States
acted to settle these pressures. The Federal
Reserve and U.S. Treasury together sold $69.6
million equivalent of marks during the month.
But the mark’s rebound had lost momentum as a
renewed upturn in U.S. interest rates began to
provide support for the dollar. Also, tensions in
Poland were generating uncertainties about Ger­
many’s strategic and economic exposure to de­
velopments in Eastern Europe. Consequently,
the mark was vulnerable from time to time to re­
newed capital outflows. On days when the spot
rate weakened, the Federal Reserve and the U.S.
Treasury were able to acquire $481.1 million
equivalent of marks and $312.8 million equiv­
alent of marks respectively in the market and
from correspondents. These marks were used to
rebuild balances and to reduce the Federal Re­
serve’s swap debt with the German Federal Bank
from $879.7 million at the end of July to $437.9
million by the end of August.
The stalling of the mark’s recovery during
August contributed to the perception in the mar­
ket that a deepening conflict between domestic
and external objectives had left the German
authorities with little room to maneuver. Follow­
ing up their actions of the summer, the German
Federal Bank acted to nudge money market rates
lower while aiming to keep an overall, tight grip
on liquidity. On September 1 the authorities cut
minimum reserve requirements by 10 percent on
domestic and foreign liabilities. To reduce fur­
ther the cost of funds to the banks, the authori­
ties acted on September 19 to lower the Lombard
rate from 9x/2 to 9 percent, while also supplying
additional mark liquidity via repurchase agree­
ments against government securities and via for­
eign exchange swaps of marks against dollars. In
fact, however, German money market rates did
not ease much because the commercial banks,
against European currency units (ECUs) done with the
European Monetary Fund. Foreign exchange reserve num­
bers used in the report are drawn from International Mone­
tary Fund data published in International Financial Statis­
tics.

Foreign Exchange Operations

expecting a further drop in official lending rates,
bid aggressively for funds in the market rather
than approach the central bank for longer-term
loans. Around the time of the International Mon­
etary Fund (IMF)-World Bank meetings in late
September and early October, expectations of a
more meaningful relaxation of policy became
widespread amid spirited public discussion of the
need for a cut in the discount rate.
Meanwhile, in contrast to the pattern of declin­
ing production and rising unemployment in Ger­
many, economic activity in the United States
was picking up. In the face of renewed demands
for money and credit, the Federal Reserve had
acted to constrain the growth of bank reserves in
order to control the growth of the monetary
aggregates. Market interest rates climbed sharp­
ly, and on September 26 the Federal Reserve
raised the discount rate 1 percentage point to 11
percent. Strong demand for money and credit
persisted, putting additional upward pressure on
U.S. money market rates. With interest differen­
tials adverse to the mark thus widening and with
market participants looking for still larger differ­
entials in the weeks ahead, capital began to flow
heavily out of mark-denominated assets. As a
result, the mark, already weighed down by the
large current-account deficit, came under in­
creasing selling pressure in the foreign exchange
market. The Trading Desk continued to buy
marks in response to the emergence of one-way
pressures, acquiring $395.9 million equivalent of
marks on behalf of the Federal Reserve and
$283.6 million equivalent of marks, including
$36.9 million on a forward basis, on behalf of the
U.S. Treasury through October 15. These pur­
chases in the market and from correspondents
enabled the Federal Reserve to liquidate in full
its remaining swap debt with the German Federal
Bank and the Treasury to continue covering its
outstanding mark-denominated, medium-term
notes.
At its Council meeting on October 20 the
German Federal Bank provided the banks with
additional rediscount quotas at preferential rates
and otherwise acted to increase bank liquidity
but decided not to lower official interest rates.
Demands that greater priority be given to restor­
ing economic growth nevertheless continued.
Indeed, a report of the five leading German
economic research institutes recommended that



213

the German Federal Bank expand the growth of
the money supply, reduce official lending rates,
and accept a temporary depreciation of the mark
if necessary to prevent the downturn of the
economy from deepening further. In the foreign
exchange market, sentiment toward the mark
turned bearish. Interest-sensitive capital flowed
even more heavily from Germany amid portfolio
shifts into the dollar, sterling, and higher-yielding
currencies in the EMS. Meanwhile, official and
commercial borrowers with financing needs in
other currencies borrowed marks and converted
the proceeds in the exchanges. The pressure of
these outflows triggered a fall in bond prices,
thus prompting the German Federal Bank to
support the capital market through open market
operations, while also pushing the mark to the
floor of the joint float vis-a-vis the French franc
and occasionally also vis-a-vis the Netherlands
guilder.
As speculative selling pressures mounted, re­
ports of a temporary withdrawal of the mark
from the joint float or of a widening in interven­
tion limits began circulating through the market.
But high-ranking German officials denied that
such measures were under consideration and
reaffirmed their commitment to maintain the
mark’s strength and thereby its attractiveness to
foreign investors. The German Federal Bank,
which had gradually increased its intervention
sales of dollars, was by late October operating
heavily in French francs and on a smaller scale in
Dutch guilders to preserve exchange rate limits
within the EMS. Even so, by early November
the mark had declined 10 percent from levels
prevailing around mid-September to a low of DM
1.96 against the dollar.
To support the mark further, the German
Federal Bank allowed the heavy intervention
within the EMS to tighten the German money
market. Moreover, the French authorities adopt­
ed measures on November 7 to ease their money
market interest rates and to discourage capital
inflows. These actions alleviated the pressures
on the mark. As concerns over realignment of
EMS parities began to fade, the immediate focus
of market attention shifted to interest rate devel­
opments among the industrial countries. In this
respect, traders were unsure about the dollar’s
prospects if U.S. interest rates should suddenly
drop off once the near-term run-up in rates

214

Federal Reserve Bulletin □ March 1981

topped out. Consequently, when signs of the
beginning of deceleration in the growth of the
U.S. monetary aggregates set off expectations
that U.S. interest rates might decline, the dollar
came suddenly on offer. As funds flowed out of
dollars back into mark-denominated assets, the
spot rate soared about 4 percent against the
dollar to a high of DM 1.8860 in less than two
trading days between November 7 and 10. In
response, the U.S. authorities intervened as a
seller of marks, while the German Federal Bank
also purchased dollars in Frankfurt.
But, contrary to expectations, U.S. interest
rates continued their advance in the weeks that
followed. With the economy expanding, the
growth of the monetary aggregates resumed and
U.S. interest rates began to advance once again.
The Federal Reserve followed by raising the
discount rate successively by 1 percentage point
each on November 17 and on December 5 to 13
percent and introduced a surcharge on frequent
use of the discount window by large borrowers.
Short-term domestic and Eurodollar rates
climbed sharply higher through mid-December,
reaching new peaks of 22 percent and opening up
interest differentials adverse to the mark of as
much as 12V2 percentage points.
Once again private capital flowed out of Ger­
many as investors locked in high dollar interest
yields at the expense of mark-denominated as­
sets and as foreign governments, corporations,
and individuals continued to borrow marks to
take advantage of relatively low interest costs
and prospective further declines of the spot rate
in the exchanges. Such outflows were of major
concern to the German authorities. They added
to huge funding needs imposed by the currentaccount deficit as well as by the continuing
deficit on long-term private direct investment.
Increased foreign borrowings by German public
authorities, mainly from members of the Organi­
zation of Petroleum Exporting Countries, were
not proving sufficient to prevent the mark from
weakening further or to stem the erosion of
Germany’s foreign exchange reserves. Accord­
ingly, the German Federal Bank acted to curtail
further capital outflows and in December negoti­
ated a “gentleman’s agreement” with large com­
mercial banks that temporarily stopped new
mark-denominated loans to foreigners. Never­
theless, selling pressure on the mark pushed the



spot rate to as low as DM 2.0325 in European
trading on December 12 despite substantial pur­
chases of marks by the Trading Desk both in
New York and through the agency of the German
Federal Bank in Frankfurt.
In the weeks between mid-October and midDecember, the U.S. authorities intervened force­
fully at times to counter one-way pressures on
the mark. The Federal Reserve acquired $1,472.8
million equivalent of marks in the market and
from correspondents, adding these to balances.
For its part the U.S. Treasury bought $3,101.7
million equivalent, including $196 million on a
forward basis, enabling it to cover entirely its
mark-denominated securities. On occasions
when the markets were particularly volatile, the
authorities also intervened to sell $170.3 million
equivalent of marks, financed out of balances.
After mid-December as U.S. interest rates
slipped back from their highs, the mark began to
recover. Even so, a sustained surge of buying did
not materialize. Some evidence had accumulated
by this time that the decline in U.S. interest rates
would be more gradual than had been originally
thought. In particular, the U.S. economy, though
generally expected to weaken in the first half of
1981, appeared fairly robust despite the de­
pressed state of the auto and housing sectors.
Moreover, further declines in German industrial
production and rising unemployment were taken
to suggest that the German authorities would
follow by lowering their interest rates. But, in
view of the considerable uncertainties surround­
ing the movement in interest differentials, few
traders were willing to take on new positions,
particularly before the year-end.
Coming into the new year, market participants
tried to assess the outlook for economic and
financial developments for 1981. Traders were
impressed by the large swing in the U.S. current
account from deficit in the first half of 1980 to
surplus in the second half of the year. Indeed, the
importance of the increasingly favorable U.S.
current-account position for the dollar-mark re­
lationship was underscored at the onset of trad­
ing in January when the mark, after initially
rising to as high as DM 1.9280 on January 6,
dropped back amid a stream of commercially
based orders for dollars. By contrast, the outlook
for Germany’s current account worsened. Most
forecasters were looking for nearly as large a

Foreign Exchange Operations

deficit this year as the shortfall of DM 28 billion
recorded in 1980, despite projections of contin­
ued stagnation and even recession in the German
economy. The prospect of a sizable and pro­
longed deficit partly reflected the adverse impact
on Germany’s terms of trade of the sharp depre­
ciation of the mark and of higher oil prices. But
underlying the tenaciousness of the deficit were
structural problems as well, such as the chal­
lenge to manufactured exports by overseas com­
petitors and Germany’s continued heavy depen­
dence on foreign energy resources.
Within Germany the ongoing policy debate
intensified amid heightened disagreement over
the appropriate adjustment to the change in
Germany’s external situation. In the exchange
market, sentiment toward the mark turned ex­
ceedingly bearish during January as market par­
ticipants focused on the ambivalence of German
policy. While holding to a firm monetary stance
in the face of internal pressures to stimulate the
economy, the central bank had nonetheless
avoided overt steps toward tightening, and mar­
ket participants began to question the resolve of
the authorities to support the mark. Moreover,
the determined tone of the Reagan administra­
tion in seeking to strengthen the U.S. posture
both at home and abroad contrasted sharply with
the sense of policy frustration in Germany, add­
ing to the market’s pessimism toward the mark.
In these circumstances, the selling of marks
gathered force as concerns about a sharp drop in
U.S. interest rates evaporated and as the Iranian
hostage crisis and the unfreezing of blocked
Iranian dollar assets were resolved without ma­
jor incident, thereby removing uncertainties
about the dollar. Downward pressures on the
mark were also aggravated by the possibility of
Soviet military intervention in Poland, in view of
Germany’s strategic exposure and its extensive
trade and investment relationships with Eastern
Europe. By late January the mark was dropping
more rapidly in the exchanges against the dollar
than other EMS currencies and was again at the
floor of the EMS vis-a-vis the French franc. In
response, the German Federal Bank intervened
in dollars and, together with the Bank of France,
in francs to preserve the EMS intervention lim­
its. For their part, the U.S. authorities also
acquired substantial amounts of marks. Even so,
the mark plummeted 10 percent from its highs in



215

early January to DM 2.1300 by January 31, for a
net decline of 19 percent over the six months
under review.
In view of the continuing volatility of the
exchanges after mid-December, the U.S. au­
thorities intervened frequently both to settle the
market and toward the end of January to counter
the strong one-way pressures building up in favor
of the dollar. From mid-December, purchases of
marks by the Federal Reserve and the U.S.
Treasury amounted to $719.0 million equivalent
and $802.6 million equivalent respectively. Over
that time, intervention sales by the U.S. authori­
ties amounted to $128.4 million equivalent.
In summary, during the six-month period the
Federal Reserve purchased $2,106.9 million
equivalent of marks in the market and $961.8
million equivalent of marks from correspon­
dents, while intervening to sell $215.9 million
equivalent. At the same time, the U.S. Treasury
acquired $3,865.2 million equivalent in the mar­
ket and another $635.8 million equivalent from
correspondents and sold $152.4 million equiv­
alent of marks. Meanwhile, reflecting sizable
intervention purchases of marks within the EMS
and the repayment of swap debt by the Federal
Reserve, Germany’s foreign exchange reserves
declined $3.3 billion over the six-month period to
stand at $42.4 billion on January 31, 1981.

Swiss Fr a n c
The economy in Switzerland, in contrast to that
in Germany, remained strong through the early
summer of last year. Bolstered by consumer and
investment demand, the Swiss gross national
product was expanding at an annual rate of 3
percent while employment advanced to its high­
est level in five years. But international develop­
ments were impinging on this otherwise favor­
able economic performance. Even though the
Swiss inflation rate was still the lowest in the
industrialized world, domestic prices were being
pulled up sharply by rising oil prices and the
higher prices of other imported goods.
The deterioration in the terms of trade, reces­
sions in foreign markets, and the strength of the
domestic economy had opened up a trade gap of
around $6 billion, about twice the 1979 deficit
and sufficiently large to push the current account

216

Federal Reserve Bulletin □ March 1981

into deficit for the first time in 15 years. More­
over, since the larger industrialized countries
were relying heavily on restrictive monetary
policies to combat high inflation, interest rates
abroad had risen, reaching historic highs in a
number of countries and moving interest differ­
entials sharply against Switzerland in early 1980.
These differentials, especially against the United
States, were widening again by early August.
The relatively low nominal interest rates in
Switzerland left the franc vulnerable to down­
ward pressures that, if they intensified, threat­
ened to increase inflationary pressures within
Switzerland. In response, the Swiss authorities
had begun to dismantle exchange controls limit­
ing capital inflows, actions that helped the franc
rebound strongly against the dollar in the late
spring and early summer. But in late July when
the dollar began to recover, the franc fell back
from its highs to trade around SF 1.65 in early
August. Later in the month as U.S. interest rates
continued to advance, the franc eased further,
slipping at times against the mark as well as the
dollar. In response, the Swiss authorities has­
tened to complete the abolition of all remaining
restrictions against capital inflows. In addition,
regulations governing borrowings in Swiss francs
were changed to make it easier for central banks
and monetary authorities to invest in private
Swiss franc placements. During this period the
U.S. authorities supplemented their operations
in marks by operating in Swiss francs as well. By
the end of August, they had bought $20 million
equivalent of francs in the market and $15.2
million equivalent from correspondents, of
which $22.6 million was for the Federal Reserve
and $12.6 million was for the Treasury.
Meanwhile, since the Swiss National Bank had
intervened only occasionally to buy dollars in
1980, the authorities were relying on other oper­
ations to provide the liquidity banks needed on a
short- and medium-term basis to maintain re­
serve requirements. These operations included
arranging foreign exchange swaps for short- and
medium-term maturities and placing government
deposits with commercial banks. Even so, the
Swiss monetary base, which is used as a target
by the authorities, was falling just below the
desired growth rate of 4 percent per year. In part,
this reflected reduced holdings of bank notes
following the removal of exchange controls. But,



with recessions spreading across other European
countries, especially Germany, the sluggishness
of monetary growth suggested that the Swiss
economy might also be slowing down. The mar­
kets came to expect a decline in interest rates.
Nevertheless, the authorities remained deter­
mined to combat inflation, which at 4 percent per
year remained historically high for Switzerland.
Therefore, the Swiss National Bank provided
liquidity at now relatively unfavorable interest
rates, thereby signaling to the market its refusal
to accommodate lower interest rates.
By mid-October, the steep rise in U.S. interest
rates opened up a large gap between U.S. and
Swiss rates. Funds flowed heavily out of the
franc into the dollar and the rate fell sharply with
other continental currencies, dropping some 5V2
percent to SF 1.7425 in early November before
leveling off with the mark around midmonth.
Nevertheless, during this same period the some­
what tighter money market conditions had
helped stabilize the franc vis-a-vis the mark.
With the franc benefiting from the return of funds
that had been invested earlier in the year in
Germany, the franc did not fall as fast as the
mark and the Swiss National Bank did not have
to intervene in the exchange market. Between
early September and mid-November the Federal
Reserve bought an additional $5 million equiv­
alent of francs in the market and $102.2 million
equivalent from correspondents. For its part the
Exchange Stabilization Fund bought $29.8 mil­
lion equivalent from correspondents.
In December, U.S. interest rates rose even
higher and the differential between U.S. and
Swiss interest rates widened to more than 14
percent. Investment portfolio managers reacted
swiftly by moving large amounts of funds out of
the franc into higher-yielding dollar assets.
Moreover, seeing little possibility of a near-term
recovery in the franc, many corporate entities,
governments, and official agencies borrowed
francs domestically or in the Euro-Swiss franc
market where in many cases borrowers simply
exercised options to allow them to switch loan
currency denominations on rollover dates. As a
result, the franc fell even more sharply against
the dollar, while also relinquishing some of its
gains against the mark. By mid-December, it
dropped another 5V2 percent to SF 1.8365 before
recovering to SF 1.7800 at the month-end in

Foreign Exchange Operations

response to the decline in U.S. interest rates and
a sharp year-end rise in Swiss interest rates.
Coming into 1981, participants remained wary
over the outlook for the franc. Its steep decline
against the dollar was seen as undercutting the
fight against inflation in Switzerland. At the same
time, the Swiss economy was expanding more
slowly in the face of deepening recessions in
Germany and elsewhere in Europe. In many
financial centers around the world the concern
over Germany’s economic outlook tended to
include Switzerland, and as a result many inves­
tors viewed the Swiss franc as a less attractive
medium for investment funds. Against this back­
ground, once it became clear in early January
that U.S. interest rates were not giving up much
ground, the franc came heavily on offer with the
other continental currencies, plummeting 8 per­
cent against the dollar over the month. This
further steep decline in the rate prompted the
Swiss National Bank to sell modest amounts of
dollars in the exchange market. Also on January
29 the Federal Reserve and the Treasury each
purchased $10 million equivalent of francs in the
market to supplement intervention in marks. The
franc closed on January 30 at a three-year low of
SF 1.9270, to end the six-month period 16V4
percent lower against the dollar. Also, the franc
eased back from its highs against the mark,
having received much less intervention support.
It therefore closed the six-month period little
changed on balance against the mark.
Over the period, Federal Reserve market and
correspondent purchases of francs totaled $30
million equivalent and $109.8 million equivalent
respectively. Treasury acquisitions of francs for
the Exchange Stabilization Fund totaled $15 mil­
lion equivalent and $37.4 million equivalent re­
spectively.
During the six-month period, Switzerland’s
foreign currency reserves fluctuated from month
to month in response to foreign exchange swap
operations undertaken for domestic monetary
purposes. On balance, the reserves declined $200
million to $12.1 billion as of January 31.
J a p a n e s e Ye n

By the third quarter of 1980, Japan was exper­
iencing a dramatic turnaround in its balance of



217

payments. This shift occurred initially in the
capital account, where heavy inflows first into
the banking sector and later into stocks and
bonds had provided more than adequate financ­
ing for a current-account deficit still running at
an annual rate of $20 billion through the first half
of the year. By midsummer, however, the cur­
rent account was itself moving out of deficit at an
unexpectedly rapid pace. A major reason for this
improvement was a large reduction of the vol­
ume of oil imports, reflecting energy conserva­
tion efforts and major investments in energysaving production processes by Japanese
companies. In addition, following the adoption of
more restrictive fiscal and monetary policies to
stabilize the Japanese yen last March, private
consumption flattened out and inventories were
cut back sharply. This reduction of domestic
demand also contributed to lower import vol­
ume, while at the same time it encouraged Japa­
nese companies to expand their overseas sales.
As a result, the Japanese yen advanced from its
early-April lows to ¥ 227.28 by the opening of
the period, while Japan’s foreign exchange re­
serves rose to $18.8 billion.
This sharp recovery in the yen, together with
the improved balance of payments performance,
touched off a debate within Japan on whether or
not to lower domestic interest rates. Earlier in
the summer, the Bank of Japan had resisted
pressures for easing monetary policy in view of
the continued strength of inflationary pressures
and the size of the current-account deficit. But
by mid-August evidence emerged of the substan­
tial improvement in the current account and of a
lowering in the inflation rate. Moreover, eco­
nomic growth was slowing down both at home
and abroad. As a result, on August 20 the Bank
of Japan lowered its discount rate 3/4 percentage
point to 8V4 percent. In addition, on September 5
the government announced a modest fiscal
stimulus, featuring a restoration of some pro­
grams cut earlier in the year.
In the exchange market, this slight relaxation
in fiscal and monetary policy had little impact on
the performance of the yen. The market had
become increasingly aware that, despite its
heavy dependence on oil imports, Japan—by
comparison with most other industrialized coun­
tries—was achieving a rapid adjustment to higher
world oil prices. The yen was remarkably resil­

218

Federal Reserve Bulletin □ March 1981

ient in the face of a prospective shortfall in oil
production resulting from the outbreak of hostil­
ities between Iran and Iraq. This resiliency im­
pressed the market and the yen continued to be
buoyed by capital inflows, including funds from
OPEC countries to purchase stocks of Japanese
companies as well as government and corporate
bonds. These inflows, together with the virtual
elimination of the current-account deficit by ear­
ly autumn, propelled the yen 7V4 percent above
early-August levels to ¥ 210.65 by September 19
and a further 2 percent to ¥ 206.20 on October
14. At this level the yen was at its highest in
nearly two years before easing back against a
strengthening dollar to ¥ 211.05 at the monthend. Meanwhile, with the yen in heavy demand
in late September and early October, the Bank of
Japan intervened in the exchange market to
moderate its rise. These operations contributed
to an increase of $2.2 billion in foreign exchange
reserves to $21.0 billion as of October 31.
In early November the strength of the yen,
further evidence of moderating inflation, and a
moderation of monetary growth provided the
Bank of Japan with an opportunity to cut its
discount rate another 1 percentage point to 7V4
percent. In addition, the authorities lowered re­
serve requirement ratios for bank deposits. This
move was largely anticipated in the exchange
market, and the yen continued to fluctuate
around ¥ 212. Around the month-end, however,
the Japanese yen dropped to as low as ¥ 216.75
on expectations of higher interest rates in the
United States coinciding with the implementa­
tion of a new exchange control law on December
1, liberalizing the movement of funds in and out
of the country. But effective the same day the
Ministry of Finance announced increases in the
quotas available to Japanese and foreign banks
for swapping dollar borrowing into yen, thereby
providing more scope for capital inflows. The
market soon came into better balance, and the
yen recovered to fluctuate around ¥ 210 through
midmonth.
In late December, exchange market sentiment
became more favorable for the yen. Continued
strength of export and investment demand was
expected to give the economy a boost in Japan
that contrasted with the spreading slowdown in
most other industrialized countries. With U.S.
interest rates also drifting lower at the time,



market participants came to expect another wave
of investment flows into Japan. As the market
turned more bullish toward the yen, commercial
leads and lags moved in its favor, pushing the
rate up to as high as ¥ 198.00 on January 5. This
abrupt rise prompted the Bank of Japan to inter­
vene in the exchanges. At that time, the dollar
was coming generally on offer and, as part of a
joint effort with the Bank of Japan to prevent the
disorderly conditions in the yen market from
spilling over into the other currency markets, the
Federal Reserve sold $50 million equivalent of
yen in New York, financed out of System bal­
ances. This intervention helped bring the market
into balance and, as concern over a possible
sharp drop in U.S. interest rates faded, the yen
rate settled back to around ¥ 202.50 by mid­
month. Thereafter, the yen traded quietly, de­
clining somewhat against the dollar but rising
against the continental European currencies.
Market sentiment remained generally positive
for the yen, which closed on January 30 at
¥ 206.10, up some 9V2 percent over the sixmonth period. Meanwhile, the Bank of Japan’s
interventions during the last three months of the
period contributed to a rise of $1.7 billion in
foreign exchange reserves to $22.7 billion as of
January 31, for an overall rise of $3.9 billion for
the six-month period.
S te r lin g

Coming into the period under review, sterling
had been buoyant relative to other European
currencies. Britain’s rising production of oil from
the North Sea left its economy well protected
against possible cutoffs in oil supplies and further
increases in energy prices. A deepening reces­
sion at home was dampening import demand so
as to help push the current account from deficit
into substantial surplus. The British authorities
remained determined to curb the entrenched
inflationary pressures in the domestic economy.
Toward that end, the Bank of England kept
short-term British interest rates close to the
recent record levels as long as the demand for
credit appeared to remain strong. As a result,
British interest rates stayed high by international
standards and, in a world dominated by fears
over the vulnerability of national economies to

Foreign Exchange Operations

rising oil prices, sterling remained an attractive
investment medium, especially in view of the
depth, diversity, and breadth of the London
money and capital markets.
As a result, the pound had led the advance of
the European currencies against the dollar during
the spring and summer to trade by early August
at $2.34 against the dollar and around 74.5 on a
trade-weighted basis as a percentage of Smith­
sonian parities. Moreover, Britain’s reserve po­
sition had become so strong that the government
had announced during July its decision to prepay
during 1980 an official Eurodollar borrowing of
$1.5 billion due to mature during 1985-88. Even
after some of these repayments, Britain’s official
foreign currency holdings at the end of July were
close to an all-time high at $20.4 billion.
Sterling’s strength in the exchange market,
while acting to slow domestic price increases,
was creating a dilemma for British policymakers,
since the pound’s steep and persistent rise
against nearly all other currencies posed an everincreasing threat to the competitiveness of Brit­
ish goods. As the pound advanced, British indus­
trialists complained bitterly over narrowing
profit margins and declining product market
shares. As Britain’s company sector came under
increasing liquidity strains, unemployment rose
to more than 2 million, stocks were run down,
and investment was cut back. The corporate
bond market remained inactive, and bank bor­
rowing was the major source of finance. The
continued high level of borrowing by the private
sector, as well as the large public-sector borrow­
ing requirement, kept monetary growth well
above target despite substantial sales of govern­
ment stock. Thus, market participants eagerly
awaited any evidence that might point to a decel­
eration in monetary growth sufficient to permit
the authorities to lower interest rates or, alterna­
tively, any development that might prompt the
authorities once more to engage in heavy ex­
change market intervention to moderate the
pound’s rise.
Instead, money market conditions in London
remained tight almost continuously from August
to October. Statistics on the growth of the mone­
tary and credit aggregates gave the market little
hope that the time had come for the Bank of
England to reduce its official minimum lending
rate. As a result, sterling continued to be well bid




219

during the late summer and fall. During August,
both the exchange market and the money market
were further influenced by efforts of the major oil
companies to acquire sterling to make sizable
petroleum revenue tax payments. In late Sep­
tember the pound was bid up further in reaction
to the outbreak of hostilities between Iraq and
Iran, rekindling concerns over the global avail­
ability of oil supplies. By mid-October, release of
figures revealing a further gain in Britain’s trade
surplus underscored the magnitude of the favor­
able shift in the country’s balance of payments
position. Thus, sterling was ratcheted up against
the dollar 3 percent in the two and a half months
to mid-October to $2.4108, even as most other
European currencies were fluctuating rather nar­
rowly, albeit somewhat lower, against the dollar.
Later that month when a renewed rise in U.S.
interest rates started to draw funds out of many
continental European currencies, the still rela­
tively high yields available in London shielded
the pound from these pressures. Indeed, with
sizable amounts of OPEC and other investment
funds on the move, some funds went into ster­
ling, and this influx helped push the exchange
rate up even higher. By late October the pound
was advancing against virtually all currencies,
hitting a six-year high of $2.4565 against the
dollar. Against the continental EMS currencies,
the pound rose 10 percent above levels in early
August to four-year highs in early November.
The Bank of England continued to intervene only
to smooth out wide movements in the rate. Net
official dollar purchases in the exchange market
were more than offset by other operations, so the
United Kingdom’s currency reserves declined
somewhat over the three months.
Meanwhile, however, credit demand, although
still strong, was on the verge of slackening for
several reasons. The government deficit, al­
though running ahead of forecast levels, was
expected to decline as a result of planned reduc­
tions in expenditures, the approach of the taxpayment season, an anticipated rebate from the
European Community (EC), and sales of government-owned companies. Also, as the recession
became more protracted and industry cut its
employment rolls while also pruning financial
commitments, the demand for bank credit was
expected to taper off. In the exchange market,
expectations therefore hardened that the authori­

220 Federal Reserve Bulletin □ March 1981

ties would announce a reduction of interest rates
when a new parliamentary session opened in
mid-November. A sharp sell-off suddenly devel­
oped, and the pound fell 43/4 percent from its
highs to $2.3385 on November 24. On that day
the Bank of England’s minimum lending rate was
reduced 2 percentage points to 14 percent. Chan­
cellor Howe also announced a series of measures
designed to lower the public-sector borrowing
requirement, including a proposal for a supple­
mentary tax on oil production at a rate of 20
percent of gross revenues and an increase in
employee national insurance contributions
(effective from April 1981). On balance, this
package was well received in the exchange mar­
ket, and the pound steadied to trade around $2.34
through mid-December.
Coming into the new year, sterling was again
buoyant in the exchange market. Underpinned
by a further widening in the current-account
surplus, a rebate from the EC, and occasional
large investment orders, the pound was bid up to
as high as $2.4320 on January 21. Nevertheless,
with U.S. interest rates unexpectedly firm and
with the dollar strong in the exchanges, the pace
of capital flows into the pound began to slow. As
a result, a diversification of investment portfolios
by British residents into other currencies, which
had proceeded ever since abolition of exchange
controls a year before, now began to show
through. Around the month-end, sterling
dropped back from its highs to close at $2.3630
on January 30. The pound was, however, still up
l l/2 percent on balance against the dollar and
nearly 21 percent higher against the mark since
the end of July. On a trade-weighted effective
basis, the rate rose 7 percentage points to 81.2
percent of its Smithsonian parity over the sixmonth period.
Meanwhile, the Bank of England continued to
intervene on both sides of the market to smooth
fluctuations in the pound. These operations had
little impact on external reserves, which were
affected more by repayments of foreign currency
debts and periodic revaluations of Britain’s hold­
ings in the European Monetary Fund. As a result
of these considerations, the United Kingdom’s
foreign currency reserves declined $1.7 billion
over the six-month period to $18.7 billion as of
January 31.



Fr e n c h Fr a n c

For France the recent sharp increase in oil prices
served to aggravate domestic inflationary pres­
sures, lower real incomes, and impose a sharp
reversal in the country’s current-account posi­
tion, thereby eroding the benefits of years of
stabilization policies. By mid-1980, the rate of
consumer price inflation had jumped up to 13V2
percent. The current-account surplus of preced­
ing years had given way to a deficit that was to
amount to $7 billion for the full year. Moreover,
the economy had lost its upward momentum in
the face of weakening consumer and investment
demand and, with little opportunity to absorb a
growing labor force, the rate of unemployment
rose to more than 6 percent.
In response, the French government had al­
ready begun to provide limited fiscal stimulus to
the economy and followed up with some further
modest measures when it announced its 1981
budget early in September. In particular, certain
social benefits were increased, more low-interest
loans were made available to export firms and to
finance housing, and some tax relief was pro­
vided to encourage new investment. But the
French authorities, remaining committed to the
combined goal of curbing inflation and maintain­
ing the strength of the French franc, resisted
pressure to ease the Bank of France’s restrictive
monetary policy as the economy weakened. In­
deed, tight limits on banks’ credit ceilings were
maintained. The growth of money, which had
run near 11 percent—the top of the target for
M-2—at times during the summer, was back well
within the targeted range by early fall. In addi­
tion, short-term rates had resumed a gradual rise
after the summer, so that interest rates for most
maturities were yielding a positive return even
after taking inflation into account.
In the exchange markets, the French franc was
trading firmly as the six-month period under
review opened. It was benefiting then, as it had
through much of the year, partly from the rela­
tively high French interest rates that attracted
investment flows into franc-denominated assets
and partly from the domestic credit ceilings that
provided an incentive to French banks and cor­
porations to borrow in foreign currencies to meet
local financing needs. In addition, the market’s

Foreign Exchange Operations

attitude toward the franc remained more positive
than for other European currencies. The currentaccount deficit, while a source of concern, was
considerably smaller than that for Germany, its
principal trading partner. France’s traditionally
good relations with Middle Eastern countries
were generally thought in the market to help
cushion France from any shortfall of oil supplies
that might result from either the Iranian crisis or
the outbreak of hostilities between Iran and Iraq.
Moreover, some investors, looking to diversify
their holdings, were attracted by the opportuni­
ties afforded in either the domestic or the Eurofranc markets. Thus, capital inflows were more
than sufficient to finance France’s current-account
deficit. The French franc had recovered from its
spring lows to trade around FF 4.15 early in
August. Bank of France intervention within the
context of the EMS had contributed to a rise in
France’s foreign currency reserves to $25.3 bil­
lion by the end of July. Also, in view of the
franc’s relative strength, the Federal Reserve
had included the French currency in its interven­
tion operations earlier in the year, leaving a net
$166.3 million of indebtedness outstanding under
the System’s swap line with the Bank of France
as of that same date.
Against this background, with the currency
markets reasonably well balanced during August
and September, the franc fluctuated narrowly
against the dollar while remaining comfortably
near the top of the EMS 2/^-percent band. Al­
though the Bank of France continued to buy
modest amounts of EMS currencies, there was
little further increase in French official foreign
exchange reserves. Later on, however, the
French franc became caught up in the tug of war
between a generally rising dollar and a declining
German mark. As the dollar strengthened after
mid-October, the French franc started a decline,
which was to proceed almost without interrup­
tion, to FF 4.4750 against the dollar by early
November. Meanwhile, the Federal Reserve
took advantage of the opportunity to begin to
buy French francs both from correspondents and
in the market and covered all its outstanding
swap debt by the end of October.
Within the EMS by contrast, upward pressure
on the French franc intensified after mid-October. The Bank of France had just, in effect,



221

reaffirmed its commitment to a restrictive mone­
tary policy stance at a time when the authorities
of other European countries were becoming in­
creasingly concerned about slower economic
growth and the prospect of recession. The
French central bank announced that its growth
target for M-2 for 1981 would be reduced to 10
percent and intervened in the Paris money mar­
ket to maintain interest rates at a fairly high
level. With the German mark coming under
increasing selling pressure, the still relatively
high level of interest rates in France attracted
funds from abroad and kept the French franc
from declining as rapidly as the mark against the
dollar. The relationship between these two cur­
rencies within the EMS, therefore, became in­
creasingly strained. On a number of occasions in
late October and early November, the franc was
at its upper intervention limit against the mark.
The central banks of both countries were obliged
to intervene in the market to buy large amounts
of marks against francs. At times the Bank of
France supplemented these operations by buying
small amounts of dollars as well. Despite these
purchases, which were partially reflected in a
$874 million increase in official foreign currency
holdings for the month of October, the franc had
risen to a high of FF 2.3002 against the mark by
October 31.
On November 7, the Bank of France an­
nounced a number of measures to relieve the
upward pressure on the franc within the EMS.
The money market intervention point was re­
duced 3/4 percentage point to 103/4 percent, and a
reserve requirement of 5 percent was imposed on
deposits of nonresidents to discourage interestsensitive short-term capital inflows from abroad.
But, to offset the effects of the recent interven­
tion activity on domestic liquidity, the Bank of
France also increased reserve requirements on
commercial bank sight and time deposits. After
these measures, the pressures in the EMS sub­
stantially subsided. The franc eased from its limit
against the German mark, although at times
during November and December the Bank of
France bought modest amounts of marks, while
also acquiring Belgian francs when that currency
was low within the EMS. For a time the EMS
currencies also steadied against the dollar.
When, however, the EMS as a group declined,

222

Federal Reserve Bulletin □ March 1981

the French franc dropped further against the
dollar, easing as much as 4 percent below earlyNovember levels before recovering some in ad­
vance of the year-end.
During January, as prospects of a resolution to
the Iranian hostage issue improved, the market
for French francs began to react to the possibility
that any move to unfreeze Iranian assets would
set off new and possibly massive flows of funds.
Those U.S. banks with liabilities vis-a-vis Iran
were presumed to have to bid for funds in the
Eurodollar market to meet these liabilities, and
as Eurodollar rates were bid up, the European
currencies generally weakened against the dol­
lar. At the same time, market participants antici­
pated that Iran, once its assets were unfrozen,
might try to switch a substantial amount of its
funds into French francs. As a result, the franc
declined less against the dollar than the other
EMS currencies as the dollar continued to ad­
vance around midmonth. Although in fact no
such flow of funds materialized, the relatively
high interest rates in France continued to attract
funds from abroad. By the end of January, the
franc was again firmly against the upper EMS
band even as it eased to FF 4.9000 against the
dollar. The Bank of France was once more
intervening with other central banks to support
the German mark and Belgian franc. France’s
official foreign currency reserves increased fur­
ther to stand at $26.5 billion by the end of
January, up $1.2 billion over the six-months.
Over the period under review, the French franc,
frequently caught between the rising dollar and
the weakening German mark, moved down 18y2
percent on balance against the dollar and up V2
percent on balance against the mark.
I t a l ia n L ir a

By mid-1980, the sharp increase in energy prices
of the past two years, together with a rapid
deterioration in Italy’s non-oil trade position,
had swung Italy’s current account sharply into
deficit, reversing the sizable surplus position of
1979. The Italian domestic economy continued to
expand strongly into 1980, even at a time when a
slackening of other economies was being reflect­
ed in a slowing of foreign demand for Italian
products. Moreover, inflation in Italy remained




relatively high, proceeding at a pace of more than
20 percent on a year-over-year basis. Since
spring, fiscal policy had been at the center of an
intense domestic debate that focused on the need
to control inflation, to reduce the government
debt, and to spur export growth. But, with no
fiscal measures yet in place, the burden of fight­
ing inflation fell entirely on monetary policy,
which remained restrictive.
In this context, the Italian lira had come under
increasing pressure. In the exchanges, as the
growing current-account deficit weighed increas­
ingly on the lira, the spot rate had not risen as the
dollar declined and, consequently, had fallen
from the top to the bottom of the EMS band. At
home, exporters had pressed strongly for devalu­
ation to restore their competitive position. Gov­
ernment officials publicly denied that devalua­
tion was a viable alternative in Italy where prices
and wages are highly indexed. Even so, commer­
cial leads and lags moved sharply against the lira,
and Italian residents sought increasingly to repay
their foreign currency borrowings, thereby add­
ing to pressure on the lira and keeping the
devaluation rumors alive. By early summer the
Bank of Italy had intervened heavily in the
exchanges to steady the lira within the EMS
band.
Early in July the government implemented a
package of austerity measures aimed at control­
ling inflation, supporting the lira in the ex­
changes, spurring exports, and cutting the public-sector borrowing requirement as a share of
gross domestic product. The measures, which
became effective immediately but required par­
liamentary ratification within 60 days, included
consolidation of value-added tax brackets; high­
er taxes on spirits, gasoline, and stamps; and a
special tax on wages to be used in support of
weak industries. At the same time, the Bank of
Italy further tightened restrictions on domestic
credit expansion. The exchange markets re­
sponded favorably to these measures, rumors of
lira devaluation subsided, and the lira firmed
temporarily in the exchanges. As capital began to
flow back into Italy and the normal touristrelated inflows began to gather pace, the Bank of
Italy was able to rebuild its foreign currency
reserves to $22.0 billion by the end of July.
Meanwhile, the lira stabilized within the EMS
band about l x/2 percent below the top and partici­

Foreign Exchange Operations

pated with the rise of other currencies against the
U.S. dollar. By early August it was trading above
its lows at LIT 838.80.
But downward pressures on the lira developed
again by mid-August. Although the domestic
economy had itself begun to slow by this time,
Italy’s current account continued to deteriorate,
and there was little evidence of improvement on
the inflation front. Market participants continued
to question how long the lira could be held within
its EMS band in view of the much lower inflation
rates in most other EMS countries. Also, the
time for ratifying the July package of economic
measures was running out. When the coalition
government of Sig. Cossiga lost a parliamentary
vote of confidence and resigned over the week­
end of September 27-28, the July government
austerity measures were allowed to lapse.
At this juncture, the Bank of Italy stepped in to
stem any buildup of speculative pressure against
the lira. It immediately raised the discount rate
l l/2 percentage points to 16l/ 2 percent, required
exporters to finance 50 percent of their short­
term credit needs in foreign currency borrow­
ings, and tightened regulations dealing with lead­
ing and lagging of payments and receipts. The
Bank of Italy also intervened forcefully in the
exchange markets. Meanwhile, a new govern­
ment under Sig. Forlani was soon formed. New
fiscal measures were put into place to control the
budget and slow the growth of personal con­
sumption. Though similar to those contained in
the July policy package, the new measures pro­
vided for additional acceleration of personal in­
come tax payments and expanded support for
ailing industries. These actions combined to re­
assure the exchange markets, and by mid-Octo­
ber the lira stabilized around LIT 865 and at a
level of about 3l/ 2 percent below the top of the
EMS band.
Over the next two months, the lira traded
comfortably within the EMS, while declining
against the U.S. dollar no more rapidly than the
other currencies involved in the joint float ar­
rangement. Interest rates in Italy remained high­
er than those abroad; and though the climbing of
U.S. rates narrowed some of the differentials
favorable to the lira, the Italian currency was
shielded more than most currencies from the
growing flows of funds into U.S. dollar assets.
Indeed, interest rate considerations, as well as




223

restrictions on domestic credit demand, still en­
couraged inflows of short-term capital, and com­
mercial leads and lags turned in favor of the lira.
Moreover, the Italian oil companies that normal­
ly enter the exchange markets to acquire foreign
currency balances in early December for regular
import payments instead borrowed heavily in the
Eurocurrency markets in the hope that the dollar
would be cheaper in the future. With the lira thus
holding steady within the EMS, the Bank of Italy
took advantage of opportunities to acquire for­
eign currencies through mid-December and re­
laxed somewhat the October regulation relating
to short-term export financing abroad.
Meanwhile, Italy’s current-account gap had
widened to bring the deficit for 1980 as a whole to
about $10 billion-^a figure that was much larger
than anticipated only a few months earlier and
overshadowed news of a modest improvement in
the trade account late in the year. Industrial
production was beginning to show signs of a
possible recovery, even before much progress
had been achieved in improving price or trade
performance. Public expenditures and borrowing
turned higher late in the year, and monetary
growth accelerated, clouding the outlook for a
near-term reduction of inflationary pressures all
the more. The Bank of Italy continued its strong
anti-inflationary stance, and Italian interest rates
remained high. Furthermore, just as the period
closed, the Bank of Italy sought to strengthen its
grip on credit expansion by extending the appli­
cation of its ceilings to all bank loans in lire and,
for the first time, to most loans in foreign curren­
cies, leaving only export loans exempt from the
ceilings.
Nevertheless, funds had begun to flow out of
Italy in late December, as export financings were
repaid and those Italian oil companies that had
previously borrowed abroad to finance their im­
port deliveries took advantage of a brief soften­
ing of dollar rates to repay these loans. The
pressures against the lira continued through Jan­
uary, prompting the Bank of Italy to intervene at
times quite heavily to maintain the lira’s position
within the EMS band. As the entire joint float
declined sharply against the dollar through Janu­
ary, the lira fell to record lows, closing the sixmonth period at LIT 1,004.50 or down a net 193/4
percent. At the same time, Italian reserves stood
at $20.5 billion, down $1.5 billion for the period.

224

Federal Reserve Bulletin □ March 1981

E u r o p e a n M o n e t a r y S ystem

Last spring and early summer, the currencies
linked together in the joint float arrangement
within the EMS rebounded against the dollar,
largely in response to the sharp decline in U.S.
interest rates while interest rates in EMS mem­
ber countries generally remained firm. This ad­
vance halted in July, and EMS currencies gener­
ally eased somewhat against the dollar in August
and in early September as U.S. interest rates
began to turn upward while interest rates in
several EMS countries declined slightly.
For the most part, these broad movements
took place without much strain on the EMS joint
float mechanism itself. Member countries faced
the common problem of having to adjust to the
sharp runup of oil prices of 1979 and early 1980,
which had generated unusually large currentaccount deficits for all of them and had aggravat­
ed domestic inflationary pressures. The authori­
ties were seeking to develop a coordinated policy
response in the monetary and fiscal areas as well
as on energy questions. Monetary policy, in
particular, had been tightened to combat infla­
tion at home and to attract funds, which could
help finance the current-account deficits, or at
least to stem an outflow of interest-sensitive
funds that would complicate the effort. In gener­
al, interest rates were higher in countries with
high rates of inflation, so interest differentials
roughly compensated for inflation differentials.
By late summer it was clear that industrial pro­
duction had dropped back from early in the year
and, with unemployment rates rising, pressures
were building up for an easing of earlier restric­
tive policies. But the central banks resisted pres­
sures to ease, in view of the continuing high rates
of inflation and the need to finance the currentaccount deficits, with the result that any move­
ment in the direction of ease was modest, if at all.
Within the band of currencies, the Dutch guild­
er was firm on the Netherlands’ relatively favor­
able external position and on the high interest
rates prevailing in the Amsterdam money mar­
ket. The guilder, after having traded in the upper
half of the EMS band during the first seven
months of the year, moved toward the top of the
band in August and remained there over the rest
of the year. The guilder’s relative strength en­
abled the Dutch authorities to move cautiously to



reduce interest rates, with four cuts in official
rates totaling 2 percentage points between June
and October. The French franc was also strong
within the EMS, alternatively at the top with the
guilder, as France attracted capital inflows in
excess of its current-account deficit. In Ireland,
foreign borrowings by the public sector were
being used to finance the current-account deficit.
Conversions in the market of the proceeds of
these borrowings and some favorable leads and
lags in sterling payments kept the Irish pound
near the top of the band. At the same time,
Denmark was financing its current-account defi­
cit by borrowing abroad, enabling the Danish
krone to fluctuate around the middle of the joint
float. The Italian lira, which is allowed a wider
trading band than the other currencies in the
arrangement, also moved widely but without
need for intervention at the outer limits.
The Belgian franc traded near the bottom of
the 2l/4 percent band. Belgium’s problems—a
large current-account deficit, a large fiscal defi­
cit, and a stagnating economy—were viewed as
particularly serious by the market. To finance
the current-account and fiscal deficits, the Bel­
gian government borrowed heavily in interna­
tional markets. Political wrangling hampered the
taking of effective adjustment measures, and the
Belgian franc remained under selling pressure,
with the result that the National Bank was
obliged to maintain interest rates high enough to
avoid funds moving out of the franc and to give
support from time to time to keep the franc
within the 2% percent EMS band.
The German mark was also near the bottom of
the band. Germany had the largest current-account deficit to finance among the EMS mem­
bers. Although Germany’s inflation performance
continued to be as good or better than the others,
German interest rates were well below those in
other EMS member countries. Moreover, Ger­
many had no official restrictions on capital out­
flows and still refrained from removing all con­
trols on inflows. The result was that funds could
readily move out of Germany into other EMS
currencies, and official and private entities with­
in other EMS countries could readily use marks
in international borrowings.
By October, strains began to build up within
the EMS. In part these came from outside, as
heavy flows of funds moved into the U.S. dollar,

Foreign Exchange Operations

the pound sterling, and the Japanese yen—cur­
rencies in which interest rates remained very
high or, as in the U.S. case, were rising. But the
interest rate disparities within the EMS and the
relative freedom of funds to move also played a
role. With the exchange markets turning general­
ly bearish over the outlook for the German mark,
funds moved out of the mark and into other EMS
currencies. To the extent that these funds gravi­
tated to the currencies at the top of the EMS
band—the French franc and Dutch guilder—the
EMS intervention mechanisms were soon trig­
gered.
Intervention mounted quickly, and talk began
circulating of a possible widening in the interven­
tion limits or of a temporary withdrawal of the
mark from the joint float arrangement. Such
approaches were openly rejected by the authori­
ties of the respective EMS member countries. In
early November, the French took measures to
ease money market conditions, making explicit
their intention to reduce the selling pressures on
the German mark. Meanwhile, the German Fed­
eral Bank was allowing the heavy intervention
within the EMS to tighten its own money market.
The market sensed the resolve of the authorities
to maintain existing parities, and the tension
gradually eased. Even so, the EMS joint float
continued to decline against the major currencies
outside the group, including the dollar, the pound
sterling, the Japanese yen, and to a small degree
the Swiss franc. Apart from a rise in the Danish
krone, reflecting a 1980 current-account deficit
for Denmark that was lower than expected, and a
downward movement in the Irish pound from its
temporarily high position in the band, the config­
uration of currencies hardly changed within the
EMS.
The currencies in the group at first recovered
slightly against the dollar when U.S. interest
rates were receding from their mid-December
highs. But it soon became apparent that U.S.
interest rates would not drop off as sharply as
some market participants had originally be­
lieved. Moreover, the market remained con­
cerned about the prospects for EMS member
countries in reversing their current-account defi­
cits and dealing with domestic policy dilemmas.
As market sentiment toward the dollar became
increasingly bullish, the dollar came into demand
against the currencies in the EMS band. As



225

before, the brunt of the immediate selling pres­
sures fell on the German mark, and that currency
touched its lower intervention limit. The Belgian
franc also came under selling pressure, and both
the mark and the franc required official support
within the EMS.

C a n a d ia n D o l l a r

In the summer of 1980, the Canadian dollar was
underpinned by a favorable shift in Canada’s
trade and current-account position, by a reversal
of the previous adverse interest rate differentials
vis-a-vis the United States, and by Canada’s
status as a major oil and gas producer. The
improvement in the trade account stemmed from
a slowdown in the domestic economy, the ability
of Canadian exporters to take advantage of the
sharp depreciation of the Canadian dollar in
previous years, and the market’s perception of
sustained efforts to curb cost and price pressures
at home through monetary policy. As a result,
exports to markets like Europe, where activity
had not yet slackened so sharply as in North
America, continued to increase. With the trade
account heading to a surplus of $7 billion for the
year, the current-account deficit was narrowing
to a size that could comfortably be financed by
private capital inflows.
The reemergence of favorable interest differ­
entials reflected the sharper drop of interest rates
in the United States than in Canada. Restoration
of the traditionally favorable interest rate gap for
Canada had once again provided an incentive for
investors to shift funds into higher-yielding
Canadian dollar assets, while also prompting
Canadian borrowers to tap U.S. and other for­
eign capital markets and to convert the proceeds
in the exchanges. Canada’s potential for increas­
ing energy production in the future for both
domestic and export use was underscored early
in the year with reports of new oil discoveries. At
a time of rapidly rising world energy prices and
uncertainty over the adequacy of aggregate oil
supplies, this factor added to the attractiveness
of the Canadian dollar as an investment medium.
In this environment, the Canadian dollar had
been bid up to its high for the year of
Can.$1.1406 in early July, and by the month-end
Canada’s foreign currency reserves stood at $1.9

226

Federal Reserve Bulletin □ March 1981

billion after repayment in May and June of $600
million borrowed early in the year under the
revolving standby credit facility with Canadian
banks.
During August and September the Canadian
dollar was beginning to lose some of its buoyan­
cy. In part, this reflected a narrowing of the
positive interest differential as Canadian interest
rates continued to ease for a while even after
interest rates in the United States resumed an
upward trend. The exchange market had also
become concerned about the continued debate
over domestic energy pricing and development
policy, which had important implications for the
distribution of income as well as the outlook for
containing inflationary pressures at home. The
western provinces had called for a larger share of
oil revenues to be returned to provincial govern­
ments and for a more rapid increase in domestic
energy prices to world market levels. When
these calls were resisted at the federal level, the
market became concerned that a fundamental
constitutional conflict might emerge over the
relationship between the federal and provincial
governments. Thus, the Canadian dollar settled
back to trade around Can.$1.1575 during much of
August and September. It came on offer in early
September around the time of a meeting between
Prime Minister Trudeau and the provincial pre­
miers and then again later in the month when no
visible progress was made on the constitutional
issue. By October 2, the rate had declined to
Can.$1.1734 with the Bank of Canada continuing
to operate on both sides of the market to smooth
short-run rate fluctuations.
The Canadian dollar firmed briefly after early
October as a number of developments, including
the outbreak of hostilities between Iran and Iraq,
reinforced the market’s positive views about
Canada’s basic strength in its natural resources.
Late in the month, however, the Canadian dollar
was again coming under some selling pressure as
the market anticipated and then reacted to mea­
sures contained in the October 28 federal budget.
The budget called for cuts in the federal deficit
and included a national energy policy that, in
turn, provided for specific measures to increase
domestic wellhead oil prices, imposed a refinery
levy to pay for oil import subsidies, and in­
creased Canadian ownership of oil and gas pro­
duction with an increase in the share of the



national oil company. These measures were seen
in the market as discouraging foreign investment
and as possibly complicating constitutional is­
sues. Indeed, a number of provinces objected to
the proposed oil-pricing arrangements, and Al­
berta announced its intention to cut its oil pro­
duction by 15 percent. These developments con­
tributed to a substantial self-off of Canadian
dollars in the exchange market and the rate
declined to Can.$ 1.1899 on November 6. By midNovember the market had come back into bal­
ance with the spot rate fluctuating around
Can.$1.1860.
Meanwhile, the Canadian economy, spurred
by strengthening retail sales and industrial pro­
duction, had picked up in the third quarter and
posted its first gain in real output for the year. At
the same time, the inflation rate began to acceler­
ate as increases in food and energy prices and
higher labor costs worked their way through the
economy. The money supply moved toward the
upper end of its target range, and the Bank of
Canada, operating within a system of establish­
ing its official bank rate in accordance with the
weekly Treasury bill tender rate, entered the
money market to push up short-term interest
rates. The discount rate then climbed to nearly
14 percent in mid-November, compared with
about 10V2 percent in mid-August. But an even
more rapid surge in interest rates was under way
in the United States—one which the Canadian
authorities were initially reluctant to match.
As a result, interest rates in Canada increas­
ingly fell behind those in the United States, and
the adverse differentials that first had emerged at
the end of August had widened sharply by November-December. Several announced bond is­
sues planned by Canadian entities for the New
York market were postponed in response to the
rise in interest rates here, cutting off a potential
source of demand for Canadian dollars in the
exchanges. Also, dealers and corporate treasur­
ers became increasingly unsure about the will­
ingness of the authorities to foster increas­
es in interest rates to match those in the
United States. The Canadian dollar therefore
came heavily on offer, plunging through the
Can.$1.20 benchmark by December 11 to a low
of Can.$1.2122 on December 16, 4V2 percent
below levels in early August.
At the same time, the Bank of Canada contin­

Foreign Exchange Operations

ued to act forcefully in the money market, raising
the official discount rate to 17.4 percent by
December 19, as well as in the exchange markets,
selling sizable amounts of dollars on a number of
occasions. These actions were reinforced by
Governor Bouey’s speech to provincial ministers
of finance restating the commitment of the Bank
of Canada to a firm anti-inflation policy and a
stable currency in the exchanges. As a result, the
Canadian dollar steadied and began to recover,
helped by an easing in U.S. interest rates. Deal­
ers moved to cover their short positions, and
corporations that had held off buying Canadian
dollars in expectation of further rate declines
entered the market to cover their needs. The rate
thus rebounded to Can.$1.1885 by December 30.
A more positive tone prevailed in the market
early in the new year, as market participants
took note of the continuing improvement in
Canada’s trade position. Also, some easing of
U.S. interest rates early in January led to a
narrowing of interest differentials vis-a-vis U.S.
dollar assets, while wide favorable differentials
for Canada remained against several major conti­
nental currencies. As a result, the Canadian
dollar generally kept pace with the rising U.S.
dollar until late in the period, thereby strengthen­
ing considerably against the continental curren­
cies. Although announcement of decontrol of
domestic oil prices in the United States by Presi­
dent Reagan on January 27 refocused market
attention on the still unresolved Canadian energy
policy controversy and sapped the Canadian
dollar of some of its strength, the spot rate was
trading about l l/2 percent above its December
lows at Can. $1.1948 by the close of the sixmonth period. At this level, it had reduced its net
decline against the U.S. dollar since July to
about 3 percent. Against the European curren­
cies, the Canadian dollar on balance had gained
about 15 percent.
As the Canadian dollar had firmed in the first
weeks of January, the Bank of Canada purchased
sizable amounts of U.S. dollars. Also, after
having drawn $900 million in December on
standby credit facilities with Canadian and for­
eign banks, the Bank of Canada repaid in Janu­
ary the $600 million drawing on Canadian banks,
leaving the $300 million drawing on foreign banks
still outstanding. As a result, Canada’s foreign
exchange reserves stood at $1.4 billion at the end



227

of the period, down $558 million net over the six
months.
S w e d ish K r o n a

Last year, the Swedish authorities were con­
fronted with several economic problems at once.
The current-account deficit deepened, to nearly
$5 billion, as the latest rise in world oil prices
added to Sweden’s oil import bill and as export
growth slackened. The inflation rate accelerated
to nearly 14 percent for the year as a whole. A
surge in state and local spending contributed to a
continuing increase in the government budget
deficit to about $10 billion, or more than 10
percent of gross national product. Efforts to deal
with these and other issues, such as the longfestering debate over nuclear policy, were ham­
pered by the fact that Sweden was governed by a
coalition of parties with only a slender majority
in Parliament. Consequently, as major adjust­
ment policies were being hammered out, the
Bank of Sweden had little choice but to tighten
monetary policy, both to absorb the excess li­
quidity generated by the fiscal deficit and to
avoid outflows of interest-sensitive funds.
Meanwhile, the Bank of Sweden intervened as
necessary to keep the krona within a reasonable
range against the index of a trade-weighted bas­
ket of currencies, and the government continued
to arrange borrowings in the international capital
markets to cover the current-account deficit and
to avoid an excessive drain on reserves. On the
possibility that some bridge financing might oc­
casionally be needed as longer-term loan pack­
ages were assembled, the Bank of Sweden
moved to reinforce its short-term credit lines. In
this context, in May the Bank of Sweden and the
Federal Reserve agreed to increase the swap
arrangement $200 million to $500 million for one
year, with the understanding that drawings could
be made, if needed, in connection with bridgefinancing operations.
Through the spring and early summer, the
exchange market for the Swedish krona was
rather well balanced, and takedowns on the
government’s international borrowings ran well
ahead of the Bank of Sweden’s intervention sales
of dollars. By August, however, as the govern­
ment prepared a new package of measures, ru­

228

Federal Reserve Bulletin □ March 1981

mors of a possible devaluation generated heavy
selling pressure on the krona, largely in the form
of adverse commercial leads and lags. The krona
declined V2 percent during the month, to as low
as SK 4.2005 against the dollar but remained
around 100.8 in terms of the official index. For
their part, the authorities firmly rejected devalu­
ation on the grounds that it would exacerbate
domestic inflationary pressures and do little to
solve Sweden’s structural problems. The Bank
of Sweden stepped up its exchange market inter­
vention, and the government increased the pace
of its external borrowings to replenish reserves.
Early in September the government convened
an extraordinary session of Parliament and
gained approval of a package of fiscal measures,
which included a sizable hike in the value-added
tax and an increase in taxes on energy consump­
tion. The government followed up by announcing
cuts in planned expenditures to reduce the bud­
get deficit. These actions were seen in the mar­
kets as positive first steps, and the krona im­
proved somewhat over October and November.
As some commercial leads and lags ran off, the
krona gained V2 percentage point, in terms of its
official index, to 100.3, while declining some 5
percent against a strengthening U.S. dollar to SK
4.36. At the end of November, Sweden’s foreign
currency reserves remained little changed from
the levels of last summer.
Nevertheless, concerns over the outlook for
Sweden’s fiscal and current-account deficits con­
tinued to weigh on the exchange market, and the
krona’s relative strengthening proved short
lived. Devaluation talk revived toward the yearend, and commercial leads and lags turned
against the krona once more. On January 12 the
government announced its proposed budget for
the next fiscal year, beginning in July 1981. The
deficit was again projected to be large, but the
message lacked significant new measures to
close the gap. The exchange market atmosphere
deteriorated further, leading to strong selling
pressure on the krona. The Bank of Sweden was
obliged to intervene in size to avoid a sharp
deterioration of the krona against the official




index. On January 20, the Bank of Sweden
followed up by announcing a series of forceful
measures: hiking its discount rate 2 percentage
points to 12 percent and its penalty lending rate
fully 4 percent to 17 percent, raising long-term
rates about 1 percentage point, doubling the
bank’s cash reserve requirements from 2 to 4
percent, and imposing a ceiling on commercial
bank lending.
These actions led to a tightening of money
market conditions aAd to a sharp rise in interest
rates, but market^rticipants continued to focus
on the need for Clear new measures on the fiscal
side. Consequently, the krona remained under
heavy selling pressure. The Bank of Sweden’s
sizable intervention continued, and the govern­
ment accelerated its pace of negotiating new
borrowings, including a $1 billion loan in the
Euromarkets. Even so, the intervention had be­
come so heavy that reserves were being drawn
down. Consequently, in late January the Bank of
Sweden drew $200 million under the swap agree­
ment with the Federal Reserve to be used as
bridge financing until new loans could be com­
pleted. Against the dollar, the krona declined a
further 5%. percent from November levels to SK
4.5900, while against the official index it slipped
to as low as 101 before recovering to 100.3 on the
last trading day of the month. On balance, Swe­
den’s reserves declined $500 million in Decem­
ber and January to $2.5 billion as of January 31.
After the turn of the month, however, the
immediate selling pressures on the krona lifted.
On February 2, employers and trade unions
reached an agreement on a wage package that
scheduled much more modest percentage in­
creases than in recent years and incorporated
cost-of-living provisions that would make de­
valuation even more improbable. On February 3,
the government announced a far-reaching pack­
age of fiscal measures, designed to scale back the
size and cost of government and to stimulate
private initiative. These developments were well
received in the exchange market, and funds
began to flow back into the krona, enabling the
authorities to replenish external reserves.
□

229

Staff Studies
The staffs o f the Board o f Governors o f the
Federal Reserve System and o f the Federal
Reserve Banks undertake studies that cover a
wide range o f economic and financial subjects.
In some instances the Federal Reserve System
finances similar studies by members o f the aca­
demic profession.
From time to time the results o f studies that
are o f general interest to the professions and to
others are summarized—or they may be printed
in full—in this section o f the F e d e r a l R e s e r v e
B u lle tin .

In all cases the analyses and conclusions set
forth are those o f the authors and do not neces­
sarily indicate concurrence by the Board o f Gov­
ernors, by the Federal Reserve Banks, or by the
members o f their staffs.
Single copies o f the full text o f each o f the
studies or papers summarized in the B u l l e t i n
are available without charge. The list o f Federal
Reserve Board publications at the back o f each
B u l l e t i n includes a separate section entitled
“Staff Studies” that lists the studies that are
currently available.

Study S um m ary

B a n k in g S t r u c t u r e

and

P erform ance

a t the

S tate L e ve l

d u r in g the

1970s

Stephen A . R h o a d es —Staff, B oard o f Governors
Prepared as a staff paper in late 1980.

The increase in mergers and acquisitions that
involved banks in different geographic markets
during the 1970s has sparked a growing interest
in the effect of bank mergers on statewide bank­
ing structure. While no systematic theoretical
framework provides a basis for analyzing
statewide banking structure, recent institutional
changes and empirical evidence suggest that cer­
tain facets of state banking structure will influ­
ence bank conduct and performance. Moreover,
since the operations of most banks are, to a large
extent, limited to a single state, the state may be
an appropriate area for considering the issue of
undue or aggregate concentration.
This paper examines the levels and trends in
state banking structure and analyzes statewide
banking performance during the 1970s. The data
are used in statistical tests to determine the
relationship, if any, between (1) state banking
laws and trends in structure and (2) statewide
banking structure and performance.



The data on state banking structure and per­
formance during the 1970s indicate the following:
1. Statewide concentration was substantially
higher in statewide-branching states than in unitbanking states.
2. Concentration in standard metropolitan sta­
tistical areas (SMSAs) was higher in statewidebranching and limited-branching states than in
unit-banking states.
3. For both states and SMSAs, concentration
was higher within unit-banking and limitedbranching states where the level of multibank
holding company activity was high.
4. More banking organizations were located in
unit-banking than in limited-branching states,
and more in limited-branching than in statewidebranching states.
5. Multimarket links were relatively numerous
in states with liberal branching laws and in those
with a considerable amount of multibank holding
company activity.

230

Federal Reserve Bulletin □ March 1981

6. Population per banking office was relatively
low in states with less restrictive branching laws.
7. Mergers and acquisitions were higher in
states with a high degree of multibank holding
company activity than in other states.
8. More new bank charters were issued in
states with restrictive branching laws than in
other states.
Furthermore, a statistical relationship between




statewide structure and performance is evident.
In view of these results, the implications of
statewide banking structure for bank perform­
ance deserve attention, both analytically and
empirically. Whatever is learned about bank
structure and performance at the state level is
likely to be relevant to banking structure at the
national level should interstate banking become
prevalent.
□

231

Industrial Production
Production of materials declined 0.3 percent in
February. Output of durable goods materials was
reduced 0.9 percent, after large increases in
earlier months; production of these materials
remained almost 4 percent less than that of a year
earlier. Output of nondurable materials edged
down slightly. Production of energy materials
increased 0.8 percent, reflecting a surge in coal
output.
Seasonally adjusted, ratio scale, 1967= 100

Released for publication March 17

Industrial production declined an estimated 0.5
percent in February, after successively smaller
monthly increases since October 1980. A rise of
0.4 percent is now estimated for January (the
initial estimate of the advance, published last
month, was 0.6 percent). In February, declines
occurred in most major components of the index,
with large decreases in durable goods for home
and construction supplies. At 150.8 percent of
the 1967 average, the index was fractionally
below the level of December 1980 and about 1
percent below that of a year earlier.
Output of consumer goods declined 0.6 per­
cent in February; the reduction was limited by a
moderate increase in automotive products as
auto assemblies increased nearly l l/2 percent to
an annual rate of 5.8 million units from the very
low rate in January. Production of home goods
declined sharply, and output of consumer nondu­
rable goods, such as clothing and consumer
staples, was reduced moderately. Production of
business equipment edged down in February; a
sharp rise in building and mining equipment was
offset by a drop of more than 3 percent in transit
equipment and small declines in other compo­
nents. Output of construction supplies fell sharp­
ly, 2.6 percent, after an average rise of 1.5
percent in each of the three preceding months.

Federal R eserve indexes, seasonally adjusted. Latest figures: Febru­
ary. Auto sales and stocks include imports.

1967 = 100
Grouping

Percentage change from preceding month

1981

1980

Jan.p

Feb.6

Oct.

N ov.

Total industrial production.............

151.5

150.8

1.9

Products, t o t a l ...................................
Final products.................................
Consumer g o o d s........................
Durable ...................................
N ondurable............................
Business equipm ent..................
D efense and s p a c e ....................
Intermediate produ cts..................
Construction s u p p lies.............
M ateria ls..............................................

150.1
148.3
147.4
138.3
151.0
178.3
101.0
156.9
146.9
153.8

149.1
147.6
146.5
137.1
150.2
177.7
101.2
154.7
143.1
153.3

1.3
1.3
1.6
5.2
.3
1.1
1.1
1.2
2.3
2.8

p Preliminary.

e Estimated.




N o te . Indexes are seasonally adjusted.

1981

Percentage
change
Feb. 1980
to
Feb. 1981

D ec.

Jan.

Feb.

1.7

1.0

.4

- .5

- 1 .2

1.0
1.2
1.0
2.4
.5
1.3
1.3
.7
1.6
2.8

.8
.5
-.2
-1 .3
.2
1.7
.9
1.7
1.3
1.3

.1
.1
- .2
-2 .0
.4
.5
.3
.5
1.5
.9

-.7
-.5
-.6
-.9
-.5
-.3
.2
-1 .4
-2 .6
-.3

-.7
-.1
-1 .3
- 5 .1
.1
1.0
4.1
-2 .8
-7 .0
-2 .0

233

Statements to Congress
Statement by Henry C. Wallich, Member, Board
o f Governors o f the Federal Reserve System,
before the Subcommittee on International Fi­
nance and Monetary Policy o f the Committee on
Banking, Housing, and Urban Affairs, U.S. Sen­
ate, February 17, 1981.

I am pleased to testify on S. 144, a bill that would
facilitate the establishment and operation of ex­
port trading companies.
When I submitted a statement on export trad­
ing companies on behalf of the Board about 10
months ago, the United States had experienced
one of the largest quarterly trade deficits in our
history. At the time, this deficit was a cause of
some concern and comment, even though it was
recognized as a temporary bulge associated with
the sharp rise in the price of imported oil. Since
that time, our exports have remained strong, and
as growth of imports has slowed, our trade
deficit has moderated considerably—by about $3
billion in 1980 despite an increase of $20 billion in
oil imports. And although we still have a sizable
trade deficit—as do nearly all oil-importing coun­
tries—unlike most other industrial countries, we
have the benefit of large and rising net receipts
on investment income and other nontrade trans­
actions, which more than outweigh our trade
deficit. In sum, the United States is one of the
few industrial countries at this time with a sur­
plus on current account—goods, services (in­
cluding investment income), and transfers. Our
position stands in sharp contrast with that of
continental European countries and Japan, all of
which are recording deficits on current account.
Recognition of the underlying strength of the
U.S. external position evidenced by this currentaccount surplus has been one factor contributing
to the recent strength of the dollar in foreign
exchange markets.
In providing this background, I mean to em­
phasize two points. First, it is important for the
United States to continue to have a strong and
expanding
export sector—one that encompasses



a broad range of domestic industries and firms.
Second, we are not faced with a crisis in our
trade position or an overall deterioration in inter­
national competitiveness, although particular in­
dustries certainly face strong foreign competi­
tion. Our present position enables us to address
issues of export policy from the perspective of
our long-term policy goals rather than as a reac­
tion to a crisis situation. In that context, I believe
that a number of government policies could be
amended in ways that would contribute material­
ly to the exploitation of export opportunities by
the private sector. Among impediments to our
exports that have been cited are environmental
regulations, the absence of clear guidelines under
the Foreign Corrupt Practices Act, and require­
ments that certain U.S. exports be shipped in
American vessels.
The export trading company concept, properly
circumscribed to avoid undue exposure of do­
mestic banks, could also be useful in developing
our export capacity. The bill under consider­
ation, however, has provisions relating to bank
ownership of export trading companies that the
Board finds troublesome. My statement will be
confined to issues involving bank ownership.
Our concern has been over the degree of bank
ownership and participation in management of
trading companies that can prudently be permit­
ted, in light of the wide range of activities in
which trading companies have traditionally en­
gaged. The Board believes its concerns would be
met by generally limiting banks to noncontrolling
investments in trading companies. By contrast,
S. 144 would permit banks to make controlling
investments and to engage actively in the man­
agement of trading companies and would place
on bank supervisory agencies the responsibility
for developing regulations for bank-owned trad­
ing companies that would hold down the risks to
banks to acceptable levels.
The issue of bank control of trading companies
goes to the heart of issues that have been long­
standing in legislation and policy. The separation

234

Federal Reserve Bulletin □ March 1981

of banking and commerce has served this nation
well in promoting economic competition and a
strong banking system. A breach of that tradi­
tional separation in the case of trading companies
could be an important precedent for other areas.
This would adversely affect not only the safety
and soundness of our banks but also their role as
impartial arbiters of credit.
Control of an enterprise often implies a com­
mitment by a bank to place its full resources
behind the subsidiary. This is a generally accept­
ed corporate policy, and it is recognized in the
marketplace. Although a banking organization
may judge that it can operate an international
commercial banking business more efficiently
and safely through controlling investments in
affiliates, we believe that bank control and in­
volvement in management of nonfinancial affili­
ates would increase the potential financial risk to
the owning banks, as I will detail later. For this
reason, the Board has recommended that, as a
rule, bank ownership interest be limited to less
than 20 percent of the stock of an export trading
company.
At the level of ownership interest of 20 per­
cent, a bank can include in its earnings a propor­
tionate share of the earnings of a trading com­
pany. Under this rule of equity accounting, a
bank may have an incentive to push a trading
company into relatively risky types of operations
in the hope of realizing immediate gains for the
bank’s earnings. Such risky operations could
increase substantially the possibility that banks
would sustain losses from operation of trading
companies. In the Board’s view it is appropriate
to hold to a minimum the incentives for banks to
seek to aim at short-term profits in trading com­
panies in which they hold investments, and we
believe that this result can best be achieved by
setting the level of bank ownership interest at
less than 20 percent. At this lower level of
ownership, a bank could take into its earnings
only the dividends received from the trading
company.
This recommendation is more conservative
than the level of control specified in the Bank
Holding Company Act and used in S. 144 be­
cause the risks to banks from investments in
trading companies appear potentially much larg­
er than the risks associated with investments in
nonbanking activities that are now permissible




under the Bank Holding Company Act. In par­
ticular, trading companies are likely to be highly
leveraged; moreover, as commercial concerns
they would operate outside the traditional finan­
cial areas where banks have developed exper­
tise.
The risks to banks from this exposure would
be especially large if particular banks became
identified with, and had a significant manage­
ment interest in, trading companies. The bill
provides that the name of a trading company
shall not be similar to that of an investing bank.
This precaution would help insulate the bank
from the risks that attach to the operation of
trading companies, so long as the bank was
similarly insulated from participation in manage­
ment and the ownership interest of the bank was
relatively small. Otherwise, the market would
soon recognize the reality of control by the bank
and would associate the trading company with
the bank regardless of differences in names.
Losses that might result from failure of trading
companies could be large, especially with high
leveraging. One need not anticipate a loss as
large as that experienced several years ago by a
major Japanese bank—about $500 million—to
recognize the potential threat to a single institu­
tion. If such a shock occurred in an uncertain
financial environment, there could develop a
general distrust of other banks engaged in similar
lines of activity and a threat to the banking
system as a whole. Thus, the issue of bank
involvement with trading companies is related to
the potential soundness of the banking system.
The bill before this subcommittee, S. 144,
seeks to limit these risks by providing that con­
trolling investments by banks be subject to prior
approval by bank supervisors and to certain
statutory safeguards. These provisions would
inevitably involve the bank supervisors to a
substantial degree in decisions regarding oper­
ations of export trading companies. Bank super­
visors are not likely to be able to anticipate all
future eventualities in acting on applications.
Even with a high level of supervisory effort,
there will always be risks that cannot be foreseen
because of the broad range of activities of trading
companies.
The detailed supervision of trading companies
that might be called for under S. 144 would be
contrary to the philosophy adopted by the Board

Statem ents to Congress

235

in its recent amendments to Regulation K, which
sought to reduce the need for detailed supervi­
sory review and regulation of international bank
operations. I would expect that U.S. export
trading companies would be able to operate
much more effectively in competing with foreign
companies if they were not subject to supervi­
sory restraints arising from the fact that they
were controlled by banks. A U.S. trading com­
pany might well have difficulty in competing with
foreign trading companies if the U.S. company
were subject to limitations on types of activities
or to capital ratios because it was controlled by a
bank. Yet limitations clearly would be needed if
banks owned trading companies. We can best
unleash the entrepreneurial talents of our trading
companies if we avoid bank involvement in their
ownership and management and rely on banks to
provide financing and related services.
I would stress, as I have on other occasions,
that bank capital is a scarce resource. If we
expect banks to play their part in financing the
increased capital investment needed in this coun­
try, we will need to resist the temptation to
encourage banks to divert capital from its tradi­
tional role as a support for lending activity—
which in my view is the way in which bank
capital can be used most productively.
I recognize that there might be room for a
limited number of exceptions to this general
norm. There might, for example, be instances in
which an export trading company designed for a

specialized purpose—for example, a particular
project—might require strong bank sponsorship.
In such a circumstance, the risks associated with
bank control of a trading company might be
outweighed by the beneficial effect for U.S.
exports from trading company operations, and
the public interest might be served by permitting
one or more U.S. banks that have special exper­
tise to acquire ownership interests of more than
20 percent, provided that the exposure of the
trading company was reasonable in relation to its
activities. I would expect that the number of
exceptions would be relatively few and would
not encompass large general or multipurpose
export trading companies that would be capable
of standing on their own feet without bank spon­
sorship. Nor would an exception be available to
banking organizations that did not possess the
requisite expertise.
In general, it would appear appropriate to
structure these exceptional cases so that the
investing banking organization is a bank holding
company rather than a bank. This approach
would be consistent with the general scheme of
federal banking laws under which nonbanking
activities are performed by corporate entities
separate from banks.
If control of trading companies by banks were
permitted only when there was a clear need, the
purposes of the bill could be accomplished and at
the same time the banking system would not be
exposed to undue risk.
□

Statement by Nancy H. Teeters, Member, Board
o f Governors o f the Federal Reserve System,
before the Subcommittee on Consumer Affairs of
the Committee on Banking, Housing, and Urban
Affairs, U.S. Senate, February 18, 1981.

under the Truth in Lending Act. The bill would
also extend the current ban on the imposition of a
credit-card surcharge for another three years.
The Board has testified earlier in favor of
omitting these discounts from the finance charge
as a way of encouraging them, and I do so again
this morning. Also, as I have done previously, I
must express the Board’s uncertainty about the
wisdom of prohibiting surcharges in view of their
economic similarity to discounts. Their permissi­
bility might in fact help assure that cash custom­
ers are not forced to subsidize credit-card users.
In our view, it is time to take a fresh look at the
cash discount issue. During the six years since
the Truth in Lending Act was first amended to

I am pleased to appear before you to present the
views of the Board of Governors on the proposed
“ Cash Discount Act.” Unlike the current law,
the proposal provides that a discount—in what­
ever amount—that is offered by a seller to a
customer to induce payment by cash, check, or
means other than an open-end credit plan or
credit card is not a disclosable finance charge




236

Federal Reserve Bulletin □ March 1981

encourage the offering of cash discounts, the
Congress has repeatedly considered the discount-surcharge issue. Testimony has been de­
livered at length. The Federal Reserve, mean­
while, has carefully constructed regulations to
carry out the statutory provisions regarding
availability and notice to consumers of dis­
counts. Despite these congressional and regula­
tory efforts, we have not seen merchants offering
discounts—at least not to any appreciable de­
gree. If we believe that encouraging merchants to
reward cash buyers is a goal worthy of diligent
pursuit, then we must try to identify the impedi­
ments that have, in fact, discouraged the con­
cept.
Our guess is that the current limit of 5 percent
on the size of the discount is not the culprit.
Rather, it may, once again, be a case of govern­
ment regulation creating part of the problem—
regulation that is grounded on a set of wellintentioned arguments, but that introduces such
friction into otherwise simple transactions that
compliance is simply not worth the merchant’s
risk or effort.
If this analysis is correct, two features in the
current regulation are probably most significant
in discouraging the development of cash-paying
incentive plans. First is the obvious difficulty in
drawing a clear economic distinction between a
permitted discount and a prohibited surcharge.
Discounts and surcharges may not be as identical
in practice as, say, a half-empty glass of water is
to a half-full one. Nevertheless, it is difficult to
quarrel with the fact that the distinction is, at
best, uncertain.
If a seller wants to impose a surcharge, it could
probably be done without running afoul of the
surcharge prohibition. The seller could simply
raise the price of an item by the amount the seller
wants to impose as a surcharge, making this new
price the “ regular price,” and then offer a lower
price to cash customers as a permitted discount.
Second, the well-intentioned protections in the
statute to insure equitable treatment of consum­
ers once again have led to seemingly complicated
regulatory provisions. The current statute and
the proposed bill specify that any discount must
be offered to “ all prospective buyers.” Its avail­
ability must be disclosed to all of them “ clearly
and conspicuously in accordance with regula­
tions of the Board.” But who are “ all prospec­




tive buyers” ? Those who present credit cards, or
all those who enter the merchant’s door? What
signs meet the test of “ clear and conspicuous”
disclosure when there are several store en­
trances and numerous independent cash regis­
ters? How do you disclose to customers who
purchase by phone? May the discount be limited
to certain types of property? How about to
certain branches of stores? We have sought to
provide answers to these questions in our regula­
tions.
Unfortunately, by issuing rules beyond the
basic provision we have again probably made
simple things so complicated that the public
throws up its hands in frustration. Although in
our current proposals to simplify Regulation Z
we have proposed trimming back these regula­
tions, the obvious way for any merchant to avoid
regulatory burden is simply not to offer dis­
counts. And that, apparently, is what has hap­
pened.
I therefore would recommend for subcommit­
tee consideration a very simple rule: that one­
time discounts or surcharges offered by the seller
for the purpose of inducing payment by cash,
check, or means other than use of an open-end
credit-card plan shall not constitute a finance
charge and that the availability of the discount or
surcharge be disclosed to customers. This rule
would leave out the specific requirement that
“ all” customers be notified and that any disclo­
sure be “ clear and conspicuous”—not because
we favor hidden plans but because of the uncer­
tainties this standard produces with the inevita­
ble need for clarification.
Of course, it is possible that authorizing dis­
counts and surcharges without calling them fi­
nance charges opens up a potential loophole in
the blanket embrace of Truth in Lending. Not
only are discounts essentially equivalent to sur­
charges but both are essentially equivalent to
finance charges. They do represent a cost of
using credit.
Therefore, if we are right that the 5 percent
limit has not itself been the impediment to mer­
chants offering discounts, this limit might be re­
tained to insure that the exclusion of dis­
counts and surcharges does not become a vehicle
that could be used to defeat the basic Truth
in Lending protections. In our view, the best
chance of accomplishing the goals the Congress

Statem ents to Congress

began pursuing six years ago would be to retain
this limit, but to allow discounts and surcharges
to be used with minimal further government
interference.
Attached to my statement is an appendix dis­
cussing certain technical problems that our staff
has identified with the current language of the
bill.1Although I have not referred to these issues
in my testimony, we would of course be happy to
answer any questions you may have on these
points.
With regard to title III, the technical amend­
ment to the Truth in Lending Act, I have no
hesitation in recommending adoption. In the
course of our efforts to revise and simplify Regu­
lation Z to conform with the Truth in Lending
Simplification and Reform Act of 1980, we have
received numerous questions regarding the sta1. The appendix to this statement is available on request
from Publications Services, Board of Governors of the Feder­
al Reserve System, Washington, D.C. 20551.

Statement by Paul A. Volcker, Chairman, Board
o f Governors o f the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, February 25, 1981.

I am pleased to be here to discuss with you the
Monetary Policy Report of the Board of Gover­
nors that reviews economic and financial devel­
opments over the past year and sets forth appro­
priate ranges for growth of money and credit for
1981.1 Because I have already reviewed recent
developments with the committee, my emphasis
this morning will be on the present and future
concerns of monetary policy. In that connection,
I would like to touch first on some more techni­
cal considerations of Federal Reserve operating
techniques.
As you well know, 1980 was a tumultuous year
for the economy and financial markets. While
most measures of the monetary and credit aggre­
gates grew at or very close to our target ranges

1. See “ Monetary Policy Report to Congress,” pp. 195-208
of this B u l l e t in .



237

tus of the civil liability provisions. The statute
gives creditors the option of complying with the
new rules beginning on April 1, 1981, or waiting
until April 1, 1982, when compliance becomes
mandatory. However, uncertainty has arisen as
to whether creditors are protected by the new
civil liability provisions of the statute if they elect
to follow the new rules before April 1, 1982. Title
III makes it clear that the civil liability provisions
take effect this April.
Without such protection, creditors will not
have the incentive they otherwise would have to
comply with the new regulations at an early date.
This outcome would seem to be contrary to what
we believe was the intent of the Congress. Both
consumers and creditors will benefit from the
new and simpler disclosure scheme. It would be
unfortunate if a technical problem turned out to
be an impediment to voluntary early compliance
with the new provisions during the transition
year. Thus, we wholeheartedly support this por­
tion of the bill.
□

for the year as a whole, considerable volatility
occurred from month to month or quarter to
quarter. Moreover, interest rates moved through
a sharp cycle and had considerable instability
over shorter time spans.
In the light of these developments, I initiated
in September a detailed study by Federal Re­
serve staff of the operating techniques adopted
by the Federal Open Market Committee in Octo­
ber 1979, looking, among other things, to the
question of whether the particular techniques we
employed contributed importantly to the ob­
served volatility. Those techniques place empha­
sis in the short run on following a path of
nonborrowed reserves.
The study drew upon the substantial body of
staff expertise both at the Board of Governors
and at the regional Federal Reserve Banks, thus
providing a variety of viewpoints and analytic
approaches. The Federal Open Market Commit­
tee (FOMC) has had some discussion of the
findings, and we are now at a point at which the
work can be made available to interested outside
experts. To assure full review, Board staff will be
arranging “ seminars,” as appropriate, with

238

Federal Reserve Bulletin □ March 1981

economists having a close interest in these mat­
ters.
Among the important questions at issue is
whether alternative techniques would promise
significantly better short-run control over the
monetary and credit aggregates and whether
such techniques would imply more interest rate
instability. We also examined again the signifi­
cance for the economy and for basic policy
objectives of monthly, quarterly, or longer devi­
ations of monetary growth from established tar­
get ranges.
For the convenience of the committee and
others, I have listed in this text some of the
technical findings that may be of more general
interest.
1. The work confirms that the week-to-week
money supply figures are subject to a consider­
able amount of statistical “ noise”—unpredict­
able short-run variations related to the inherent
difficulty of computing reliable weekly seasonal
adjustment factors and other random distur­
bances. One analysis suggests that the random
element in the weekly M-l data, as first pub­
lished, is about $3 billion, plus or minus. While
those variations average out over time, they
could amount to $1V2 billion on a monthly aver­
age basis, equivalent to a change of 4V2 percent
at an annual rate.
2. No clear evidence was found that, in the
present institutional setting, alternative ap­
proaches to reserve (or monetary base) targeting
would increase the precision of monetary con­
trol. Indeed, in current circumstances, some
other approaches would appear to result in less
precision in the short run. Perhaps more signifi­
cant, the linkage between any reserve measure
and money in the short run was loose; economet­
ric tests seem to suggest that, even assuming
absolute precision in meeting a reserve target
(which is not in fact possible), monthly M-l
measures would be expected to deviate from the
target by more than 8 to 10 percent, plus or
minus (at an annual rate), one-third of the time.
Those deviations should tend to average out over
time, so that much closer control could be
achieved over a period of three to six months,
assuming no constraints on operations from in­
terest rates or other factors. Those econometric
results are consistent with the actual experience
of 1980.



3. Pursuing the closest possible short-run con­
trol of the money supply by any technique entails
a willingness to tolerate large changes over short
periods of time in short-term interest rates—
greater than were experienced in 1980. The tech­
nique actually employed, as expected, contribut­
ed to more day-to-day or week-to-week volatility
than earlier procedures, but presumably not so
much as other, more rigid reserve targeting ap­
proaches. Experience in 1980 also strongly sug­
gested that short-run changes in money market
rates became more highly correlated with fluctu­
ations in long-term interest rates, which may be
of more significance to investment and financial
planning. The degree to which that closer associ­
ation reflected uncertainty and a learning process
unique to 1980 or is inherent in reserve-based
targeting cannot be determined at this time.
4. Interest rate instability associated with the
new techniques per se is extremely difficult to
distinguish from other sources of interest rate
fluctuation. However, the major swings in inter­
est rates during the year—historic peaks in early
1980, the sharp drop in the spring, and the return
to historical highs—can be traced to disturbances
in the economy itself, to the imposition and
removal of credit controls, to the budgetary
situation, and to shifting inflationary expecta­
tions. Indeed, while much compressed in time,
the broad interest rate fluctuations were, in rela­
tive magnitude, not out of keeping with earlier
cyclical experience.
5. Money supply fluctuations last year over
periods of a quarter or so were probably larger
than might have been expected on the basis of
econometric analysis of reserve control tech­
niques. The inference from the study is that the
credit control program and other external
“ shocks” could have been responsible. At the
same time, the evidence is that the quarterly
deviations in money growth from the trend for
the year did not have an important influence on
economic activity. If money growth had some­
how been held constant, short-run interest rate
variability would have been still larger.
In analyzing the results of the study and given
the basic intent to control monetary and credit
growth within target ranges over a period of
time, the FOMC continues to believe present
operating techniques are broadly appropriate.
Assuming the present institutional structure, al­

Statem ents to Congress

ternative reserve control approaches do not ap­
pear to promise more short-term precision. We
do, however, have under consideration possible
modifications and improvements. Without going
into technical detail, such matters as more fre­
quent adjustment of the discount rate, more
forceful adjustments in the “path” for nonbor­
rowed reserves when the money supply is “ off
course,” and a return to contemporaneous re­
serve accounting are being actively reviewed. In
each case, the possible advantages in terms of
closer control of the monetary aggregates need to
be weighed against other considerations, includ­
ing contributing to unnecessary short-run volatil­
ity of interest rates.
As a personal observation, I would emphasize
that swings in the money and credit aggregates
over a month, a quarter, or even longer should
not be disturbing (and indeed may in some situa­
tions be desirable), provided there is understand­
ing and confidence in our intentions over more
significant periods of time. A major part of the
rationale of present, or other reserve-based,
techniques is to assure better monetary control
over time. I believe, but cannot “prove,” that
the money supply in 1980 was held under closer
control than if our operating emphasis had re­
mained on interest rates. I hope 1980 was in­
structive in demonstrating that we do take the
targets seriously, as a means both of communi­
cating our intentions to the public and of disci­
plining ourselves.
In that light, I would like to turn to the targets
for 1981. Those targets were set with the inten­
tion of achieving further reduction in the growth
of money and credit—returning such growth
over time to amounts consistent with the capaci­
ty of the economy to grow at stable prices.
Against the background of the strong inflationary
momentum in the economy, the targets are frankly
designed to be restrictive. They do imply restraint
on the potential growth of the nominal gross na­
tional product. If inflation continues unabated or
rises, real activity is likely to be squeezed. As
inflation begins noticeably to abate, the stage will
be set for stronger real growth. Monetary policy is,
of course, designed to encourage that disinflation­
ary process. But the success of the policy and the
extent to which it can be achieved without great
pressure on interest rates and stress on financial
markets, already heavily strained, will also depend



239

on other public policies and private attitudes and
behavior.
Abstracting from the impact of shifts into
negotiable order of withdrawal (NOW) accounts
and other interest-bearing transaction accounts,
growth ranges for the narrower monetary aggre­
gates—M-l A and M-1B—have been reduced by
V2 percent to 3-5 V2 percent and 3V2-6 percent
respectively. Growth last year from the fourth
quarter 1979 average to the fourth quarter 1980
average (when adjusted for shifts into NOW
accounts) approximated 6!/ 4 percent and 6% per­
cent, just about at the top of the target range.2
Consequently, the new target ranges imply a
significant reduction in the monetary growth
rates.
The FOMC did not change the targets for M-2
or M-3. In the case of M-2, the upper end of the
range was exceeded by about 3/4 percent in 1980,
and M-2, which includes new forms of marketrate savings instruments and the popular money
market mutual funds, has shown some recent
tendency to grow more rapidly relative to the
narrow aggregates. In the past few years, growth
of M-2 has been much closer to the growth of
nominal GNP than has growth of M-l. Should
those conditions prevail in 1981, actual results
may well lie in the upper part of the range
indicated. M-3, which includes instruments such
as certificates of deposit used by banks to fi­
nance marginal loan growth, is influenced, as is
bank credit itself, by the amount of financing
channeled through the banking system as op­
posed to the open market. Changes in those
aggregates must be assessed in that light.
I must emphasize that both M-l series, as
actually reported, are currently distorted by the
shift into interest-bearing transaction accounts.
Those shifts were particularly large in January,
when for the first time depository institutions in
all parts of the country were permitted to offer
such accounts. As the year progresses, we antici­
pate that the distortion will diminish as has
already been the case in February. However,
2.
Growth, as statistically recorded, was 5 percent for
M-l A in 1980 and 7 l/4 percent for M-1B. Available evidence
suggests that about two-thirds of the transfer into interestbearing checking accounts in 1980 reflected shifts from
M-l A, “ artificially” depressing M-l A, and about one-third
reflected shifts from savings or other accounts, “ artificially”
raising M-1B. The data and the targets cited are calculated as
if such shifts did not take place.

240

Federal Reserve Bulletin □ March 1981

any estimate of the shifts into NOW-type ac­
counts for 1981 as a whole and the source of
those funds must be tentative.
Survey results and other data available to us
suggest that perhaps 80 percent of the initial
shifts during January into NOW and related
accounts were from demand deposits included in
M-1A, thus “ artificially” depressing that statis­
tic. The remaining 20 percent was apparently
shifted from savings accounts (or other invest­
ment instruments), ‘4artificially ’’ increasing
M-1B. More recent data suggest that the propor­
tion shifting from demand deposits, while still
preponderant, may be slowly falling. Making
allowance for these shifts, M-l A and M-1B
through mid-February of this year have remained
near the average level of December. At intervals
we plan to publish further estimates of the shifts
in accounts and their implications for assessing
actual growth relative to the targets. But I cannot
emphasize too strongly the need for caution in
interpreting published data over the next few
months.
Once these shifts are largely completed, we
plan publication of a single M-l series. In that
connection, I must note that the behavior of an
M-l series containing a large element of interestbearing deposits, with characteristics of savings
as well as transaction accounts, is likely to alter
relationships between M-l and other economic
variables. For that and other reasons, the signifi­
cance of trends in any monetary aggregate even
over long periods of time must be analyzed
carefully, and, if necessary, appropriate adjust­
ments in targets must be made.
Those technical considerations should not ob­
scure the basic thrust of our policy posture. Our
intent is not to accommodate inflationary forces;
rather, we mean to exert continuing restraint on
growth in money and credit to squeeze out
inflationary pressures. That posture should be
reflected in further deceleration in the monetary
aggregates in the years ahead and is an essential
ingredient in any effective policy to restore price
stability.
During 1980 despite the pressures arising from
sharply higher oil prices and the strong momen­
tum of large wage settlements and other factors,
inflation did not increase. But the hard fact is
that we, as a nation, have not yet decisively
turned back the tide of inflation. In my judgment,



until we do so prospects for strong and sustained
economic growth will remain dim. In that con­
nection, forecasts by both the administration and
members of the FOMC anticipate continuing
economic difficulties and high inflation during
1981.
I have emphasized on a number of occasions
that we now have a rare opportunity to deal with
our economic malaise in a forceful, coordinated
way. As things stand, the tax burden is rising;
yet, in principle the need for tax reduction—tax
reduction aimed to the maximum extent at incen­
tives to invest, to save, and to work—has come
to be widely recognized. Regulatory and other
government policies have tended to increase
costs excessively and damage the flexibility of
the economy; but realization of the need to
redress the balance of costs and benefits is now
widespread. Despite efforts to cut back from
time to time, government spending has gained a
momentum of its own; now, the possibility of
attacking the problem head on presents itself.
We are all conscious of the high levels of interest
rates and strains in our financial system; yet,
there is widespread understanding of the need for
monetary restraint.
The new administration is clearly aware of
these realities and has set forth a program of
action. It has seized the initiative in moving from
opportunity to practical policy.
I know that the case is sometimes made that
monetary policy alone can deal with the inflation
side of the equation. But not in the real world—
not if other policies pull in other directions,
feeding inflationary expectations, propelling the
cost and wage structure upward, and placing
enormous burdens on financial markets with
large budgetary deficits into the indefinite future.
That is why it seems to me so critical—if
monetary policy is to do its job without unduly
straining the financial fabric—that the federal
budget be brought into balance at the earliest
practical time. That objective cannot be achieved
in a sluggish economy. Moreover, tax reduc­
tion—emphasizing incentives—is important to
help lay the base for renewed growth and pro­
ductivity. For those reasons, the linchpin of any
effective economic program today seems to me
early, and by past standards massive, progress in
cutting back the upward surge of expenditures,
on and off budget.

Statem ents to Congress

We know the crucial importance of restraint
on money and credit growth. When I am asked
about the need for consistency among all the
elements of economic policy—a policy that can
effectively deal with inflation and lay the ground­
work for growth—I must emphasize the need to

241

combine that monetary restraint with spending
control.
Cutting spending may appear to be the most
painful part of the job—but I am convinced that
the pain for all of us will ultimately be much
greater if such cutting is not accomplished. □

Chairman Volcker gave a similar statement
before the House Committee on Banking, Fi­
nance and Urban Affairs, February 26, 1981.

Statement by J. Charles Partee, Member, Board
o f Governors o f the Federal Reserve System,
before the Subcommittee on Telecommunica­
tions, Consumer Protection and Finance o f the
Committee on Energy and Commerce, U.S.
House o f Representatives, February 26, 1981.

I appreciate the opportunity to appear before this
committee to discuss H.R. 1294, a bill to extend
margin credit regulations to the acquisition of
U.S. corporations by foreign persons using cred­
it obtained from foreign lenders, as well as
House Concurrent Resolution 59, which calls for
a study by the Securities and Exchange Commis­
sion (SEC) and the Department of Commerce on
the effects of such foreign acquisitions on our
economy.
It is my understanding that H.R. 1294 and its
companion bill in the Senate, S. 289, would make
it unlawful for a foreign lender to extend credit
and for a foreign national to obtain credit in
excess of the margin requirements of the Federal
Reserve Board when that credit would finance
certain acquisitions of U.S. securities.
The Board recognizes that the purpose of H.R.
1294 is to provide for equity between domestic
and foreign interests in the area of corporate
acquisition financing. But our experience in mar­
gin regulation leads us to the view that the
proposed legislation would create many prob­
lems and that its costs would probably be well in
excess of its benefits.
At the outset, I would like to point out that the
Board has been concerned with the possibilities
for circumventing the margin regulations through
extensions of credit abroad ever since the regula­
tions were first imposed in the 1930s. From the



beginning, however, we have faced the insolvable problem that, because of the complexity and
flexibility of financial arrangements made outside
the United States, it would be quite impossible to
monitor this source of credit with anything like
the same effectiveness expected of domestic
margin regulation.
A prior attempt by the Board to regulate in the
area of foreign securities credit transactions may
serve to clarify some of the problems encoun­
tered, which still appear relevant in the context
of the proposed legislation.
In 1963 a special study of the securities mar­
kets pointed to the problems created by the
availability of credit from foreign sources. The
study found that foreign credit sources were
significant sources of funds for large purchases of
securities. Prompted by the findings of this
study, the Board subsequently took the position
that when credit is used in connection with a
securities purchase effected on a domestic ex­
change, or that otherwise had its impact in this
country, then that credit came within the pur­
view of the Board’s responsibilities, and persons
subject to U.S. jurisdiction could be prohibited
from acting on behalf of the parties. The Board,
realizing that it was nearly impossible for a
securities transaction originating abroad to be
executed in the United States without the help of
a domestic agent, proposed to amend its margin
regulations to forbid persons already subject to
these regulations to perform services connected
with any credit associated with the transaction
unless the loan was in conformity with the appli­
cable margin requirements. The Board stated
that the so-called agency proposals were directed
against excessive credit flowing into the securi­

242

Federal Reserve Bulletin □ March 1981

ties markets in circumvention of the other provi­
sions of section 7 of the Exchange Act.
Adverse public comment on this proposal gen­
erally reflected strong representations that the
application of credit regulations to foreign banks
could violate international law. Commentators
feared that the proposed rule would be viewed
abroad by foreign financial institutions as an
unacceptable intrusion into their affairs and an
attempt by the Board to extend its influence and
jurisdiction beyond the borders of the United
States.
Still another objection to the proposed agency
provision was the difficulty in its application to
the foreign financial community and the lack of
any capability for insuring effective enforcement
abroad. Critics stated that a foreign bank could
not comply with a regulation having no force of
law in its own country, without establishing
costly controls and procedural followups as a
voluntary matter. The expectation that foreign
banks would do this and continue to uphold such
procedures years after they were instituted was
thought to be unrealistic, in the absence of any
domestic supervisory authority. This is a rel­
evant concern with respect to H.R. 1294 because
the Board’s margin rules apply not only when
credit is initially extended, that is, when the 13D
or 14D filings are made, but throughout the life of
the loan.
In 1968 these considerations caused the Board
to modify its agency proposals to permit domes­
tic banks to act as agents for foreign banks in
certain circumstances. The changed proposal
represented an important shift of position, away
from the attempt to control the flow of all foreign
credit into the domestic securities markets to the
more limited objective of preserving the integrity
of the Board’s margin regulations by preventing
evasions on the part of U.S. persons resulting
from the use of foreign credit sources.
This more limited objective was finally
achieved when, in 1971, Regulation X was pro­
mulgated by the Board with the stated purpose of
“preventing the infusion of unregulated credit
into U.S. securities markets.” The new regula­
tion was limited to U.S. borrowers and foreign
nationals who were controlled by or otherwise
acting on behalf of U.S. residents, and it shifted
focus from the foreign credit source—over which
our jurisdiction was questionable—to the U.S.




borrower or his agent, where enforcement sanc­
tions were available.
Our experience indicates to us that the benefits
derived from any wider reach of the margin rules
would not be justified by the costs. I see these
costs as difficult and controversial enforcement
issues, antagonism from foreign financial institu­
tions and governments, and, quite possibly, the
retaliatory imposition abroad of new barriers to
the free flow of capital,
I realize that corporate takeovers, both friend­
ly and unfriendly, often generate much notoriety
and controversy. All takeovers, however, should
not be viewed in a negative light. In fact, such
acquisitions by foreign or domestic interests are
often welcomed by financially troubled Ameri­
can corporations and can serve the important
economic purpose of revitalizing inefficient
firms.
Even if it were determined that foreign take­
overs were undesirable as a matter of public
policy, I believe that the imposition of margin
requirements on foreign credit transactions
would not be the most effective vehicle in pre­
venting such corporate activity.
First, the proposed legislation would not reach
corporate takeovers in which credit is not used.
Acquisitions financed with corporate earnings or
through an exchange of shares are not subject to
the margin regulations and would therefore re­
main unaffected. Also, a substantial foreign firm
could usually assemble sufficient collateral or
borrow on an unsecured basis to meet the rules,
at least for the time it would take to file and
process the required 13D or 14D statement and
for the acquisition to be consummated.
Second, the proposed legislation would apply
to all acquisitions of 5 percent or more of compa­
nies subject to registration under section 12—a
percentage of ownership that does not necessar­
ily indicate that the acquirer intends to control
the corporation whose stock it purchases. In
fact, such acquisitions often are made for invest­
ment purposes only, with no view to ultimate
corporate change.
Finally, the proposed legislation would apply
only to acquisitions of corporations subject to
registration under section 12 of the Securities
Exchange Act of 1934, and not to many impor­
tant U.S. corporations that are closely held or
otherwise are exempted from SEC coverage.

Statem ents to Congress

243

You have also asked for Board comment on
Concurrent Resolution 59, with respect to the
type of information that would throw light on the
impact on the U.S. economy and on U.S. securi­
ties markets of the acquisition of U.S. companies
by foreign nationals. Adequate statistical infor­
mation is available on such acquisitions; we have
just had the first results of a new annual reporting
system developed by the Commerce Depart­
ment, which provides a wealth of data on the
acquisitions made by foreigners in 1979. More­
over, data have been collected for many years in
connection with the preparation of the U.S.
international accounts. I would doubt, therefore,
that anything more needs to be done along those
lines.
There are limits, however, to what can be
learned from data stemming mainly from corpo­
rate accounts—balance sheets, profit and loss
statements, and related records. Such informa­
tion is extremely helpful in portraying the share
of various aspects of the U.S. economy—pro­
duction, employment, earnings, and so forth—in
which foreign-owned U.S. firms, both old and
new, participate. But the question of economic
impact on the economy is considerably broader
and goes beyond such quantitative measure­
ments. Our national interest is concerned primar­
ily with finding ways to make the economy work
more efficiently; to be more innovative in techni­
cal and managerial techniques; and to reach into
areas of industry or commerce that are falling
behind economically but may be revived with an
infusion of new capital, or new management, or
new ideas. When we look at the impact of
corporate acquisitions on the U.S. economy,
whether foreign or domestic, these seem to be
the most relevant factors.
What this suggests is that it might be useful to
take a look at a cross section of acquisitions and
attempt to develop a qualitative evaluation of the

possible benefit, or possible damage, of the
change in ownership and management. Such a
survey could provide a valuable supplement to
the quantitative material that is already avail­
able. The early history of foreign investment in
the United States shows many examples of for­
eign initiative here that significantly influenced
our own economic development; and even
though the United States became the predomi­
nant exporter of industrial capital many years
ago, ample room still exists for us to benefit from
healthy injections of investment and ideas origi­
nating elsewhere.
On the question of the effects on U.S. securi­
ties markets, we at the Board are not aware of
any generalized adverse impacts from the acqui­
sition activities of foreign investors. Last year
there was unusually active foreign interest in
U.S. equity markets, with gross foreign pur­
chases of U.S. stocks near $40 billion and net
purchases of about $5 billion. In fact, however,
this activity is generally welcomed as a sign of
the overall attractiveness of the U.S. economy.
Such purchases tend to make it easier for all U.S.
corporations to obtain equity financing in the
market.
A remote possibility exists that specific foreign
purchases aimed at acquiring substantial inter­
ests in U.S. companies might disturb some sec­
tor of the market, but it should be recognized
that any conceivable activity would still account
for only a tiny share of total transactions in our
markets. We are not aware of policies in foreign
countries aimed at stimulating foreign acquisi­
tions of U.S. firms. Indeed, most countries
would probably envy the ability of the United
States to attract sizable capital inflows, especial­
ly in the current environment, in which sharply
higher oil prices have meant that almost all
industrial nations are facing large current-account deficits.
□

Statement by Paul A. Volcker, Chairman, Board
of Governors o f the Federal Reserve System,
before the Committee on Ways and Means, U.S.
House o f Representatives, March 3, 1981.

about economic policy. The Ways and Means
Committee of course carries the responsibility
for originating tax legislation and has large
spending programs under its immediate purview.
The responsibilities of the Federal Reserve lie in
the area of monetary policy. Mutual understand­
ing of our purposes and policies seems to me

I am pleased to be here to discuss with you some
considerations
relevant to your deliberations



244

Federal Reserve Bulletin □ March 1981

critical to achieving more satisfactory economic
performance and to the success of the program
outlined by the President.
The economy entered 1981 on an upward
trajectory, extending the recovery in activity
from last year’s brief but sharp recession. Janu­
ary saw further gains in retail sales, employment,
and industrial production and—despite high in­
terest rates—continued stability in housing
starts. On the whole, the demand for goods and
services has continued to prove more buoyant
than most analysts had expected.
However, as we all know, unemployment and
inflation remain at unacceptably high levels.
There have been strong pressures in financial
markets. Moreover, as things stand, the outlook
is far from satisfactory. In particular, it is clear
that we will be unable to have sustained econom­
ic expansion unless we are successful in bringing
inflation down. Monetary policy is and will re­
main directed toward that priority objective.
But, in my judgment, to continue to rely on
monetary and credit restraint almost alone to
deal with inflation would pose large and unneces­
sary risks—risks of financial strains and of exces­
sive costs in terms of growth and investment.
Last year, monetary restraint was the key
factor in keeping inflation from accelerating in
the face of rising oil prices and other factors.
Important as it was, that “ holding action” was
accomplished only at the expense of historically
high interest rates, impinging strongly on some
areas of the economy and on investment general­
ly. In these circumstances, the monetary re­
straint essential to deal with inflation urgently
needs to be combined with other effective ac­
tions to relieve pressures on financial markets, to
reduce costs, to spur investment and productiv­
ity, and to encourage risk-taking. In the best of
circumstances, it will take time to bring results,
and the process of change almost inevitably will
involve some pain. But, with the new President
seizing the initiative, I also believe we have a
virtually unparalleled opportunity to achieve a
consensus for effective action in a number of
directions.
As you know, I testified last week before the
banking committees of the House and Senate,
presenting the intentions of the Federal Reserve
with respect to monetary and credit growth for
1981. Without repeating the details, those targets



are consistent with further reduction in the
growth of money and credit this year. Against
the background of the strong inflationary mo­
mentum in the economy, the targets are frankly
designed to be restrictive, as they must be if we
are to look toward a winding down of the infla­
tionary process. And, while we only look a year
ahead in setting out specific growth ranges for
the various money and credit aggregates, further
reductions will be necessary in the years ahead
to return monetary growth to amounts consistent
with the capacity of the economy to grow at
stable prices.
The narrow money aggregates, M-l A and
M-1B, are currently distorted by rapid institu­
tional change—the introduction of negotiable or­
der of withdrawal (NOW) accounts and other
interest-bearing transaction accounts nation­
wide. Abstracting from the impact of shifts into
those accounts, our intentions are reflected in a
reduction of targeted growth ranges by V2 per­
cent (to 3 to 5V2 percent and 3l/ 2 to 6 percent) for
M-l A and M-1B respectively. Growth last year
from the fourth-quarter-1979 average to the
fourth-quarter-1980 average (when adjusted for
shifts into NOW accounts) approximated 6V4
percent and 6% percent, just over the top of the
target range.1 Consequently, the new target
ranges imply a significant reduction in the mone­
tary growth rates.
The Federal Open Market Committee did not
change the targets for the broader M-2 or M-3
aggregates, which include various types of sav­
ings and time deposit accounts. The relationship
between M-2, M-3, and the narrower aggregates
has changed over recent years and this year’s
targets are consistent with further restraint
across the entire range of monetary measures.
Indeed, because actual growth in 1980 was 3/4
1. Growth, as statistically recorded and published, was 5
percent for M-l A in 1980 and 7V4 percent for M-1B. Available
evidence suggests about two-thirds of the transfer into inter­
est-bearing checking accounts in 1980 reflected shifts from
M-1A, “artificially” depressing M-1A, and about one-third
reflected shifts from savings or other accounts, “artificially”
raising M-1B. The data and the targets cited in the text are
calculated as if such shifts did not take place.
For 1981 the target ranges for growth of M-l A and M-1B
before adjustment for these shifts are - 4 l/2 to - 2 percent
and 6 to SV2 percent respectively. See “Monetary Policy
Report to Congress,” pages 195-208 in this B u l l e t i n for a
complete discussion of the impact on the 1981 targets of
nationwide NOW account growth.

percent or more above the upper end of the
indicated range, success in reaching the target
range in 1981 implies significantly lower growth.
I cannot emphasize too strongly the need for
care in interpreting the actual data for monetary
and credit growth as the year progresses. As I
indicated, both M-l series are currently distorted
by the shift into interest-bearing transaction ac­
counts. As the year progresses, we anticipate the
distortion will diminish, and from time to time we
will provide estimates of the effects of the shifts
on the data. But beyond that particular source of
distortion, the data are subject to considerable
volatility from month to month or quarter to
quarter. What counts is the trend over a reason­
able period of time.
Those technical considerations should not ob­
scure the basic thrust of our policy posture. Our
intent is not to accommodate inflationary forces
but rather to continue the restraint on growth in
money and credit that is necessary to squeeze
out inflationary pressures. Whereas there can be
debate about timing and degree, the need for that
basic discipline is common to virtually all
schools of economic thought and is, of course,
recognized in the administration’s program for
economic recovery.
Restraint on monetary expansion does place
broad limits on the potential growth of the nomi­
nal gross national product—that is, the combined
result of changes in real output and the price
level. It implies that all the demands for money
and credit potentially generated by an economy
both growing and inflating cannot be met. So
long as inflation continues unabated or rises, real
activity is likely to be constrained. But as infla­
tion begins noticeably to abate, the stage will be
set for stronger—and sustained—real growth.
Monetary policy is, of course, designed to en­
courage and speed that disinflationary process.
But the success of such a policy—particularly
the extent to which it can be pursued without
great pressure on interest rates and aggravating
strains in financial markets—also will depend on
other public policies and private attitudes and
behavior.
I must emphasize the risks and difficulties of
dealing with inflation entirely by monetary poli­
cy—of failing to bring other policies into support
of that objective. If budgetary and other policies
pull in the opposite direction—if those policies



Statem ents to Congress

245

feed inflationary expectations, propel the cost
and wage structure upward, add unnecessary
regulatory costs, and fail to reduce and in time
eliminate deficit financing—then the danger of a
kind of collision in financial markets between
public and private borrowers will be intensified.
But that risk can be minimized in the short run
and the groundwork laid for renewed prosperity
in the 1980s by forceful, coordinated actions.
Fortunately, there appears to be broad recogni­
tion of the nature and urgency of our problems
and a willingness to bring to bear a new discipline
in fiscal and regulatory policy.
To that end, the new administration has set
forth a sweeping new program of action encom­
passing an array of spending cuts and tax reduc­
tions. There will properly be debate about the
specific components of that program. Estimates
of its precise impact on the economy this year
and next will vary, just as such estimates would
be challenged for any program. The simple fact is
that we have not been able to count on any
economic forecasting technique to provide con­
sistently reliable results in recent years in the
face of the virtually unprecedented nature of our
economic problems, severe energy shocks, and
volatile expectations. In these circumstances, I
personally would be cautious in interpreting the
results of any economic model so far as the
precise timing and magnitude of future economic
developments are concerned. But that does not
mean that valid judgments cannot be reached
about the general shape, size, and direction of
needed policy changes. Economic analysis
seems to me to point clearly to the following
conclusions:
1. Against the background of the federal tax
burden reaching the highest level in our history,
tax cuts are needed to encourage greater invest­
ment, productivity, and work effort.
2. At the same time, a continued need to
finance huge budgetary deficits in congested
financial markets into the indefinite future would
threaten the availability of funds to private bor­
rowers, including businesses that must under­
take the needed productive investment as well as
to the homebuilding industry and others heavily
dependent on borrowed funds.
3. In these circumstances, the amount of tax
reduction that can be prudently undertaken is
dependent on cutting back the inexorable rise in

246

Federal Reserve Bulletin □ March 1981

federal spending, on and off budget. The larger
the spending cuts, the greater the prospects for
reducing the strains in financial markets and for
turning back inflation.
4. In the best of circumstances, there are
limits to the amount of revenues that, in the short
run, can be foregone as a result of tax cuts. Thus,
from the standpoint of general economic policy,
the emphasis in tax reduction should, to the
maximum extent feasible, be placed on measures
that promise to increase incentives to work, to
invest, and to save.
5. At a time when we are fighting inflation,
other government policies that increase costs,
inhibit competition, and impair the flexibility of
the market economy need urgent review. Costs
of regulatory policies must be assessed against
the benefits. Our markets must be open to com­
petition from home and abroad to spur innova­
tion and productivity, and government should
reexamine policies that tend to place an exces­
sively high and rising floor under certain costs
and prices.
This committee is deeply involved in the cru­
cial fiscal decisionmaking. I know that tax and
spending cuts, by their very nature, involve
difficult considerations of fairness as well as
economic efficiency. It is not appropriate for the
Federal Reserve to intrude on the details of that
decisionmaking process. But I would emphasize
one point central to economic policy generally
and the relationship to monetary policy in par­
ticular.
To me, the linchpin of the whole economic
program is early and, by past standards, massive
progress in cutting back the upward surge of
federal expenditures. Those spending cutbacks
are necessary to clear the way for sizable tax
reduction and to permit early progress toward
the goal of a balanced budget.
I know the difficulties and constraints—the
need to increase defense spending, to protect the
truly needy, to pay interest, and to maintain
strength and continuity in other essential pro­
grams. But the budget is huge and has increased
by more than a third in real terms over the last
decade. Surely there is ample room for cutting if
there is the will, and the administration proposals
for specific cuts over a broad array of programs
point the way.



I must emphasize that, from the standpoint of
general economic policy, all the risks seem to me
on the side of not cutting back the rise in
spending enough. Every dollar of added savings
can only help head off tensions in financial
markets, make room for more private invest­
ment, and provide an appropriate setting for
prudent and needed tax reduction. In that con­
nection, I would remind you that even the specif­
ic cuts proposed by the administration, large as
they are, are only a kind of progress payment
toward what needs to be done to bring the budget
into balance in reasonably prosperous economic
conditions. Further very sizable reductions are
indicated in the program for fiscal 1983 and
beyond. The sooner that process is started, the
better will be the prospects for changing public
attitudes and economic performance.
I would like to make one last point before
concluding. The need to reduce inflation as part
of any effective economic program is now widely
recognized, and the Federal Reserve has an
indispensable role to play in that process. How
soon our efforts in that direction succeed, and
how soon we can look forward to healthy growth
and reduced unemployment, will depend in large
measure on how quickly attitudes toward infla­
tion change in the private sector, and how those
new attitudes are reflected in pricing and wage
decisions.
Strong upward momentum in wage contracts
and pricing policies will ultimately be inconsis­
tent with a commitment to monetary and fiscal
restraint, and inimical to the interests of both the
nation and the particular firms and workers in­
volved. After years of inflation, attitudes and
expectations are not likely to change easily. That
is why our commitment to restraint must be
strong, visible, and sustained.
I believe the monetary targets of the Federal
Reserve are consistent with that need. Demon­
strated progress on the fiscal side is also a
necessary ingredient. And, in the end, we will
need to see visible progress toward price stabil­
ity—an objective that for far too long has eluded
us. All of this will inevitably require harsh
choices. But I know of no feasible alternatives.
And I am convinced that the difficulties for all of
us will ultimately be much greater if these
choices are not squarely confronted now.
□

247

Announcements
P u b l ic a t io n of
C a p it a l F o r m a t io n S t u d y

Since the early seventies, increasing attention
has been focused on the adequacy of the rate of
capital formation in the United States. To im­
prove its understanding of the economic issues
underlying the discussion of capital adequacy,
the Board of Governors, through its Committee
on Research and Statistics, directed the staff to
study the determinants of capital formation and
the public policy measures that might be institut­
ed to improve the prospects for real investment
in the economy.
Public Policy and Capital Formation publishes
the results of that study. It contains 19 papers
that focus on the various issues involved and
were prepared by members of the research staffs
within the Federal Reserve System.
The heightened interest in capital formation
has likely resulted from a number of recent
trends and events. Productivity growth has been
slow throughout the 1970s, and some have
blamed this development on inadequate invest­
ment in plant and equipment. The widespread
shortages, particularly of basic materials, that
appeared in 1973 and 1974 raised doubts about
whether the country’s productive capacity was
as great as had been previously thought. The
rapid rise in energy prices beginning in 1973 has
stirred speculation that many capital facilities are
now obsolete because they use energy in what
have become uneconomic quantities.
During the cyclical upswing that began in 1975,
business investment has been unusually weak at
the same time that the labor force has been
growing rapidly, prompting questions about the
ability of the economy to absorb the influx of
new workers. Recurrent deficits in the balance of
trade and the decline of the international value of
the dollar have lent urgency to the question of
capital formation particularly since the countries
that have enjoyed the largest trade surpluses and
currency appreciations—Germany and Japan,




for example—are characterized by comparative­
ly high rates of capital formation. Although the
most apparent policy tools for influencing saving
and investment are beyond the control of a
central bank, the policies of the Federal Reserve
can affect capital formation.
The price of the publication is $13.50 a copy.
Copies may be obtained from Publications Serv­
ices, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
S u p p l e m e n t a l P r ic in g P r o c e d u r e

The Federal Reserve Board on February 27,
1981, announced adoption of three sets of proce­
dures designed to implement the service pricing
requirements of the Monetary Control Act of
1980. The procedures supplement the pricing
principles announced by the Board on December
31, 1980, and include the following: (1) proce­
dures for the administration of clearing balances;
(2) guidelines for billing cycles, service charge
statements, and payments for service charges;
and (3) interim procedures for initiation and
review of changes in fees and services.
The new procedures are detailed below.
Clearing B alances

The Board of Governors has authorized Federal
Reserve Banks to establish clearing balances for
eligible institutions with zero or small required
reserve balances in order to facilitate access to
Federal Reserve services.1 Clearing balances
1. An institution may elect to settle the credits and debits
arising from its use of Federal Reserve services in one of the
following ways: (1) through its own account at a Reserve
Bank that may consist of a reserve balance and/or a clearing
balance; (2) by means of prior arrangements, through an
account maintained by a correspondent at a Reserve Bank;
and (3) if it maintains reserves with a passthrough correspon­
dent and has made prior arrangements through the pass­
through reserve account maintained at a Reserve Bank.

248

Federal Reserve Bulletin □ March 1981

help to avoid account overdrafts and their associ­
ated costs, and will earn credits that may be used
to offset charges for Federal Reserve services.
Institutions that may establish a clearing balance
include domestic depository institutions, U.S.
branches and agencies of foreign banks, Edge
Act corporations, and Federal Home Loan
Banks.
Establishing and adjusting the clearing bal­
ance level. In establishing the initial clearing

balance a Reserve Bank will discuss with an
institution its expected use of services. These
discussions will focus on both the volume of
services and the type of services the institution
intends to use and the need to avoid account
overdrafts. For example, use of the wire transfer
service results in an irrevocable transaction that
may require a greater clearing balance than an­
other higher-volume service involving revocable
transactions.
Adjustments in the amount of an institution’s
clearing balance may result from changes in its
overdraft experience or in its use of services.
Satisfactory maintenance of the clearing balance
with no overdrafts may, with Reserve Bank
approval, enable an institution to reduce its
clearing balance. Conversely, a pattern of re­
peated large overdrafts may be reason for a
Reserve Bank to require an increase in an institu­
tion’s clearing balance. Similarly, a decrease in
the use of Federal Reserve services may be
reason to consider decreasing an institution’s
clearing balances, whereas an increase in the use
of services may be reason to consider increasing
the clearing balance requirement. Adjustments in
the clearing balance level will be discussed in
advance with the financial institution. Such ad­
justments will be made no more than once a
month and will be effective with the maintenance
period beginning the first Thursday of each
month.
For monetary control purposes it is important
that an institution’s clearing balance be main­
tained at its agreed-upon (required) level. The
Federal Reserve has developed procedures, in­
cluding financial incentives, that are designed to
encourage maintenance of a clearing balance at
the required level. These procedures include
earnings credits, account maintenance proce­
dures, and fees for deficiencies.




Earnings credits. Earnings credits on clearing
balances may only be used to offset charges for
Federal Reserve services. The average federal
funds rate for the weekly maintenance period
will be the basis for calculating earnings credits.
This rate is published v/eekly in Federal Reserve
statistical release H .15(519), “ Selected Interest
Rates.”
Credits will be computed on the lesser of the
required clearing balance or the actual clearing
balance maintained (after adjustments and “ car­
ry-forwards” ). The calculation of earnings cred­
its will be lagged two weeks beyond the close of
the weekly maintenance period so as to minimize
the number of times when earnings credits must
be recalculated because of “ as-of ’ adjustments
to the base.2 If an as-of adjustment affects the
level of the clearing balance held during a period
more than two weeks before the date that the
adjustment is made, the Reserve Bank will ana­
lyze the effect on earnings credits calculated for
that period. Any correction will be made to
earnings credits available in the current or a
future billing cycle.
If available earnings credits exceed the Feder­
al Reserve charges incurred during a given
month, unused credits will be accumulated for
use in subsequent months. Credits will be re­
tained for a maximum of 52 weeks and will be
applied against service charges using the first-in,
first-out method. Earnings credits are not trans­
ferable among accounts.
Account maintenance procedures. Account
maintenance procedures generally will be the
same whether balances in the account are clear­
ing or reserve balances, or both, in order to aid in
account administration for both financial institu­
tions and the Reserve Banks. Similarities be­
tween administration of reserve and clearing
accounts include the following: (1) weekly main­
tenance period (from Thursday through Wednes­
day); (2) carry-forward provisions (for any ex­
cess or deficiency that does not exceed 2 percent
of the required account balance); (3) provisions
for “ as-of’ adjustments; (4) provisions for moni­

2. The term “as-of’ and other similar technical terms used
in this document are best explained by direct contact with the
Federal Reserve office that serves the area in which an
institution is located.

Announcements

toring daylight overdrafts; (5) charges for over­
night overdrafts (overdrafts are penalized cur­
rently by charging a fee of 10 percent per
annum); (6) provisions for waiving charges for
infrequent and small overdrafts.
If an institution meets its reserve requirements
with either vault cash or with a passthrough
relationship with a correspondent, it may estab­
lish its own account at a Reserve Bank through
which it settles the debits and credits arising
from its use of Federal Reserve services. Such an
account would contain a clearing balance only
and would be administered independently of the
institution’s required reserves. The account
maintenance procedures will apply to the ac­
count maintained for clearing purposes, and the
carry-forward provision will be 2 percent of the
required clearing balance.
If a depository institution has a reserve ac­
count with a Federal Reserve office and a re­
quired clearing balance is established for the
institution, both the reserve balance and the
clearing balance will be administered in a single
account. The depository institution will be ex­
pected to maintain a daily average balance for
the week equal to the sum of its required reserve
balance and its required clearing balance. At the
end of each weekly maintenance period, the
balance held with a Reserve office (after applica­
tion of any as-of adjustment and/or carry-forward) will be allocated first to the required
clearing balance and second to the required
reserve balance. Thus, if the average balance
held with a Reserve office during the weekly
maintenance period is less than the total required
balance—clearing plus required reserve—the de­
pository institution will be considered deficient
in its required reserve balance. A clearing bal­
ance deficiency will occur only when the defi­
ciency in the average total balance exceeds the
required reserve balance. If the average balance
exceeds the required total balance, the institu­
tion will be considered to be holding an excess
reserve balance. The carry-forward provision for
excesses or deficiencies will be 2 percent of the
total required balance (clearing plus reserve).
Neither excess nor required reserve balances
will generate earnings credits.
Of course, a depository institution that main­
tains its required reserves on a passthrough basis
or in vault cash may obtain available Federal




249

Reserve services directly from its Federal Re­
serve office without establishing a clearing bal­
ance account.
Fees for deficiencies. The notable exception
between the administration of reserve and clear­
ing balances is that a deficiency in a required
clearing balance is charged for a different rate
than a deficiency in a required reserve balance.
A charge of 2 percent per year will apply to
that portion of any clearing balance deficiency
(after application of carryover) that does not
exceed 20 percent of the required clearing bal­
ance. Any remaining deficiency (above the
amount equal to 20 percent of the required
clearing balance) will be subject to a charge at 4
percent per year.
As in reserve administration, Reserve Banks
may waive the charge for infrequent clearing
balance deficiencies when the charge is small and
the deficiency is not the result of negligence by
the depository institution. Reserve Banks will
monitor the incidence of deficiencies and will
meet with a depository institution that demon­
strates a repeated inability to maintain the re­
quired level to discuss how to manage better its
total (reserve plus clearing) balance.

Service Charges

The Federal Reserve System has developed
guidelines for statements of charges incurred for
Federal Reserve services and for methods of
payment for those charges by the responsible
Reserve Bank customer. The guidelines include
the following: uniform billing cycles (the periods
over which service charges are incurred), uni­
form procedures for applying available earnings
credits to offset service charges, a standard inter­
val between the end of the billing cycle and the
debiting of charges (not offset by earnings cred­
its) to a designated account, and minimum stan­
dards for descriptive information to be provided
to customers about the services used and charges
incurred.
These guidelines will be implemented with the
start of the pricing of, and full access to, Federal
Reserve check services now scheduled for Au­
gust 1981. Until then, each Reserve Bank will
use its own procedures on an interim basis.

250

Federal Reserve Bulletin □ March 1981

The guidelines will provide procedural consis­
tency among Reserve Bank Districts. However,
the Reserve Banks will retain flexibility in the
format of service charge statements and in the
frequency of service charge notices to their cus­
tomers.
Before implementation, the Reserve Banks
will provide Federal Reserve customers with at
least two summary statements of services used
and charges incurred to test these procedures.
Uniform billing cycles. There will be twelve

billing cycles per year over which charges for
Federal Reserve services will be accrued. Each
billing cycle will end on the last Wednesday of
the calendar month and will cover either a fouror five-week period.
Minimum standards for statements o f service
charges. At minimum, a monthly summary state­

ment of service charges incurred over the cycle
will be provided directly or indirectly to Federal
Reserve customers. The statement will be pro­
vided by the Reserve Bank no later than the
Wednesday following the close of the billing
cycle (that is, no later than the first Wednesday
of the subsequent month).
It is the intent of the Federal Reserve System
to reflect in the statement the Federal Reserve
services used during the billing cycle by type of
transaction with associated unit volume, unit
price for the service, and total charges for the
service. However, some Reserve Banks may not
be immediately in a position to provide this
minimum detail on the monthly statement but
will be able, during the interim, to provide ade­
quate detail in some alternative form.
Each Reserve Bank will provide its customers
with a list of persons who can respond to ques­
tions about each type of service charge.
Application o f earnings credits. Earnings cred­
its available at the end of the billing cycle will be
used immediately to offset service charges ac­
crued. As of the end of the billing cycle in each
calendar month, earnings credits available are
defined as earnings credits imputed to clearing
balances maintained through the reserve-clearing
statement period ending two weeks before the
end of the billing cycle. If available earnings
credits exceed service charges, excess earnings



credits may be carried forward for up to 52
weeks and applied to service charges incurred in
subsequent billing cycles. If available earnings
credits are insufficient to cover service charges,
the remaining service charges will be debited to a
previously designated account at a Federal Re­
serve Bank.
Debit o f service charges to the responsible
account. On the third Thursday following the

close of each billing cycle (or on the next busi­
ness day if that Thursday is a holiday), the
account of the user of Federal Reserve services
or the designated account of the user’s corre­
spondent will be charged for the amount by
which service charges exceed available earnings
credits.
Interim P rocedures f o r Pricing
A dm inistration

The pricing of financial services supplied by the
Federal Reserve System to financial institutions
will have a significant impact on both the Federal
Reserve and the financial community. The Sys­
tem has a responsibility to adopt administrative
procedures for pricing that will meet the needs of
Reserve Banks in adjusting to a new environ­
ment and to the needs of the financial community
for advance information about changes.
In its December 31, 1980, announcement of
pricing decisions, the Board of Governors out­
lined a procedure for pricing administration that
contemplated eventually placing primary respon­
sibility for initiation of price and service changes
with the Reserve Banks and review of certain
proposed changes by the Conference of First
Vice Presidents. During the initial phase of pric­
ing, however, the Board anticipated that major
policy issues would arise and that the resolution
of those issues could affect both Federal Reserve
Banks and private suppliers of interbank serv­
ices. To advise the Board on those major issues,
a pricing policy committee consisting of repre­
sentatives from the Board and the Reserve
Banks has been established.
The procedures outlined later are intended to
retain flexibility for the Reserve Banks to under­
take price and service changes in response to
local conditions and, simultaneously, to develop

Announcements

a common Systemwide framework for pricing
decisions. These interim procedures will be re­
viewed in 1982 after the System has gained
experience with pricing administration.
Role o f the Board o f Governors. The Monetary
Control Act specifies that the Board must put
into effect a set of pricing principles and a
schedule of fees for Federal Reserve bank serv­
ices to depository institutions. The Board’s re­
sponsibilities for pricing administration are as
follows: (1) to establish the initial fee structure
for each service; (2) to approve proposed
changes in the fee structure for each service; (3)
to issue guidelines for the use of pricing tech­
niques, such as peak-load pricing, designed to
encourage efficient use of resources; (4) to deter­
mine annually the appropriateness of continuing
to price automated clearinghouse services at
their expected long-run average cost; (5) to ap­
prove proposed changes in services that raise
major policy issues; and (6) to provide oversight
of the Reserve Bank implementation of access
to, and pricing of, services in accordance with
the Board’s pricing principles. (The pricing prin­
ciples are contained in the Federal Reserve press
release of December 31, 1980.)
Role o f the pricing policy committee . The
pricing policy committee, as the principal pricing
policy advisory group to the Board of Gover­
nors, has the following three major responsibil­
ities: (1) to advise the Board on all significant
pricing issues, including operating procedures
(such as billing and clearing balances), fee struc­
tures, and service structures; (2) to monitor
changes in fees and services—initiated either by
a Reserve Bank or through the Conference of
First Vice Presidents, to ensure that the pricing
principles previously announced by the Board
are interpreted consistently—and to submit to
the Board of Governors for its approval any
change that raises a major policy issue; (3) to
assist the Board of Governors in its implementa­
tion of pricing and in the oversight of progress
toward meeting the System goal of matching
revenues and costs for priced services.
To fulfill these responsibilities, the pricing
policy committee will undertake the following
specific assignments: (1) review, before an­
nouncement, the proposed 1982 fee schedules for



251

all priced services; (2) review, before announce­
ment, proposed significant changes in prices or
services; (3) establish Reserve Bank reporting
procedures necessary to provide data needed to
advise the Board of Governors on pricing issues
and progress in matching revenues and costs.
The pricing policy committee is an interim
group that is expected to be phased out as the
System gains experience with pricing. In the
longer run, the Reserve Banks and the Confer­
ence of First Vice Presidents will be given pri­
mary responsibility for changes in fees and serv­
ices, subject to the traditional review by the
Board and its Committee on Reserve Bank Ac­
tivities.
Role o f the Reserve Banks and the Conference
o f First Vice Presidents . Changes in fees and

services will be initiated by the Reserve Banks
for District-priced services; for nationally priced
services, changes will be reviewed by the Con­
ference of First Vice Presidents. Although
changes will be monitored by the pricing policy
committee during the interim period, the Reserve
Banks and the Conference will be responsible for
ensuring that changes comply with the Board’s
pricing principles.
Announcements o f changes in fees and serv­
ices. The Federal Reserve intends to review all

service fees at least annually and will announce
adjustments to fee schedules that reflect current
estimates of expenses and the private sector
adjustment factor. Apart from the annual review,
announcements will be made whenever new
services are introduced or when significant
changes are made in existing services. Some fee
changes may be announced between annual re­
views that are necessitated as a result of forecast
errors or other unanticipated changes in either
the service environment or the resources re­
quired for a service. It is the System’s intent to
give its customers reasonable advance notice of
changes in its fees and significant changes in
service arrangements. When exceptional circum­
stances require, however, prices or services may
be changed on short notice.
Generally speaking, changes in prices and
services will be announced in advance in Re­
serve Bank operating letters. Public comment
will be solicited on important pricing issues that

252

Federal Reserve Bulletin □ March 1981

would have significant longer-run effects on the
nation’s payments system.
A mendment

to

R e g u l a t io n P

The Federal Reserve Board has amended Regu­
lation P (Minimum Security Devices and Proce­
dures for Federal Reserve Banks and State Mem­
ber Banks) implementing the Bank Protection
Act to eliminate several reporting requirements.
The actions lighten the regulatory reporting
burden of all state member banks and are expect­
ed to be of particular benefit to small banks.
The Board amended Regulation P to eliminate
a requirement calling for reports (form P-l) to be
filed by state member banks concerning security
devices in use at their banking office. This action
had been recommended to the Board (and to
other federal agencies supervising banks and
thrift institutions) by the Federal Financial Insti­
tutions Examination Council. In adopting the
Council’s recommendation, the Board said that it
has been found that regular, on-site examination
of bank security by bank examiners and the




generally high current level of bank security have
made this report unnecessary.
Regulation P was also amended to eliminate
the requirements that state member banks file
with their District Reserve Bank a copy of their
written security program and, when applicable, a
copy of the bank’s statement explaining why the
bank’s security program does not meet the mini­
mum standards of the regulation.
State member banks are required to continue
preparing these reports and to have them readily
available for scrutiny by examiners. It has been
found that examiners generally rely on bank
records and not Reserve Bank records in deter­
mining compliance with the regulation.
S ystem M e m b e r s h ip :
A d m is s io n o f S tate B a n k

The following bank was admitted to membership
in the Federal Reserve System during the period
February 11 through March 10, 1981:
Virginia

Tazewell............. Citizens Bank of Tazewell

253

Legal Developments
B a n k H o l d in g C o m p a n y a n d B a n k M e r g e r
O r d e r s Is s u e d b y th e B o a r d o f G o v e r n o r s

Orders Under Section 3 o f Bank Holding
Company A ct

First National Boston Corporation,
Boston, Massachusetts
Order Approving Acquisition o f a Bank

First National Boston Corporation, Boston, Massa­
chusetts, a bank holding company within the meaning
of the Bank Holding Company Act of 1956 (the “ BHC
Act”), has applied for the Board’s approval under
section 3(a)(3) of the BHC Act (12 U.S.C. § 1842(a)(3))
to acquire 100 percent (less directors’ qualifying
shares) of the shares of The Country Bank, National
Association,
Shelburne
Falls,
Massachusetts
(“ Bank” ).
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
BHC Act. The time for filing comments and views has
expired and the Board has considered the application
and all comments received, including those of the
Massachusetts Urban Reinvestment Advisory Group,
Inc., Jamaica Plain, Massachusetts, and the Rural
Development Corporation of Franklin County, Green­
field, Massachusetts (collectively referred to as “Prot­
estants” ), in light of the factors set forth in section 3(c)
of the BHC Act. In addition to interposing numerous
objections to the proposed acquisition, Protestants
have requested that the Board order a formal hearing
to air the Community Reinvestment Act (“ CRA” )related issues raised by this application.
With regard to Protestants’ request for a hearing,
neither the CRA, nor section 3(b) of the BHC Act
requires the Board to hold a formal hearing concerning
an application, except when the appropriate banking
authority makes a timely written recommendation of
denial of an application. In this case, no such recom­
mendation has been received from the Comptroller of
the Currency, and, thus, no formal hearing is required.
Nevertheless, the Board could in its discretion order a
formal or informal proceeding concerning the applica­
tion if it determines that there are material questions of



fact in dispute that can only be resolved by means of
such a proceeding.
After considering the record of this application, the
Board has determined that there are no material factu­
al differences in the record which would warrant a
hearing on this application. Rather, Protestants’ pri­
mary arguments concern the interpretation or signifi­
cance that should be accorded to certain facts in the
record. Since the Board is charged by statute with
making such judgments, and in view of the fact that all
parties have been afforded a full and fair opportunity
to present their arguments in written submissions to
the record, including the opportunity to comment on
one anothers’ submissions, the Board has determined
that a hearing would serve no useful purpose.1 Ac­
cordingly, Protestants’ request for a formal hearing is
hereby denied. Thus, the Board will consider the
merits of the application, including the objections
raised by Protestants.
Applicant, the largest commercial banking organiza­
tion in Massachusetts, controls nine domestic banking
subsidiaries with aggregate deposits of $4.2 billion,
representing 22.5 percent of the total commercial bank
deposits in the state.2 Acquisition of Bank, with de­
posits of $14.9 million, would increase Applicant’s
share of commercial bank deposits in Massachusetts
by less than one-tenth of one percent. Thus, consum­
mation of the proposal would not have any appreciable
effect upon the concentration of banking resources in
Massachusetts.
Bank, with four banking offices, is the third largest
of four commercial banks in the Greenfield banking
market,3 and holds 14.8 percent of the commercial

1. In this regard, the Board notes that Protestants and Applicant
have had ample opportunity to resolve any material factual differences
in a hearing conducted on September 25, 1980, by the Massachusetts
Board of Bank Incorporation (“ Massachusetts Board”) concerning
issues similar to those raised by Protestants in connection with the
proposed acquisition. The hearing was attended by representatives of
the Federal Reserve System, and the order of the Massachusetts
Board has been made a part of the record in this application. On
January 20, 1981, the Massachusetts Board unanimously approved
Applicant’s acquisition of Bank, and has recommended approval of
this application.
2. All banking data are as of June 30, 1980, unless otherwise
indicated.
3. The Greenfield banking market is approximated by Franklin
County, Massachusetts, excluding the towns of Warrick, Orange,
New Salem, Whately, Sunderland, Leverett and Shutesbury.

254

Federal Reserve Bulletin □ March 1981

bank deposits in the market. While Old Colony Bank
of Hampden County, N .A ., (“ OCB-Hampden” ), Ap­
plicant’s nearest subsidiary bank, has an office located
18 road miles southeast of Bank’s Conway office,
OCB-Hampden operates in a separate and distinct
banking market, and none of Applicant’s other bank­
ing subsidiaries operates in the Greenfield banking
market. Accordingly, the Board concludes that con­
summation of the proposal would not result in the
elimination of any existing competition between Appli­
cant and Bank. While it appears that Applicant has the
financial and managerial resources to enter the Green­
field banking market de novo, based on the record the
Board regards that market as unattractive for de novo
entry and notes state law precludes Applicant from
branching into the market. Based on the foregoing, the
Board concludes that consummation of the proposal
would not have any significantly adverse effects on
existing or potential competition in any relevant area.
The financial and managerial resources and future
prospects of Applicant, its banking subsidiaries and
Bank are regarded as satisfactory. Applicant has com­
mitted to inject some additional capital into Bank upon
consummation of the proposal, which would enhance
Bank’s future prospects. Accordingly, it is the Board’s
judgment that banking factors lend some weight to­
ward approval of this application.
In considering the effects of the proposed acquisi­
tion on the convenience and needs of the community
to be served, the Board has also considered the record
of Applicant’s banking subsidiaries in meeting the
credit needs of their communities as provided in CRA
(12 U.S.C. § 2901) and the Board’s Regulation BB,
(12 C.F.R. § 228).4 In so doing, the Board has exam­
ined the objections of Protestants relating to Appli­
cant’s record of performance with respect to CRA
factors, and particularly the record of Applicant’s lead
bank, First National Bank of Boston (“ FNBB” ),
Boston, Massachusetts. Specifically, Protestants al­
lege that Applicant engages in community disinvest­
ment as evidenced by the decreasing percentage of
loans made by FNBB in its CRA community as
compared to its total domestic and international lend­
ing operations; that FNBB’s efforts to ascertain com­
munity credit needs are ineffective; that FNBB’s par­
ticipation in community development programs has
been insufficient; that FNBB has failed to meet the
credit needs of small businesses and small farmers;
that Applicant’s subsidiary banks have failed to meet
the needs of CRA communities for housing-related
4.
The CRA requires the Board to assess the record of Applicant’s
banking subsidiaries in helping to meet the credit needs of their entire
communities, including low- and moderate-income neighborhoods,
consistent with safe and sound operation, and to take the record of
those institutions into account in its evaluation of this application.




credit; and, that Applicant’s subsidiary banks have not
complied with the technical requirements of CRA or
the Home Mortgage Disclosure Act of 1975
(“ HMDA” ) (12 U.S.C. § 2803).
In support of their objections, Protestants have
submitted information to the Board regarding these
allegations. In addition, the proposed acquisition has
been the subject of public hearings before the Massa­
chusetts Board during which Protestants presented
information concerning their allegations. The Board
has examined the submissions offered by Protestants
and Applicant regarding the issues raised by Protes­
tants. The Board has also considered the conclusions
of the Office of the Comptroller of the Currency,
which conducted an examination of FNBB that includ­
ed an assessment of FNBB’s record of meeting the
requirements of the CRA. Finally, the Board notes
that it has recently had occasion to consider many of
the same issues raised by Protestants in acting to
approve an application by Applicant to acquire South­
eastern Bank and Trust Company, New Bedford,
Massachusetts.5 There the Board found that, on bal­
ance, Applicant has a positive record of helping to
meet the credit needs of its community, including the
low- to moderate-income areas. In considering Protes­
tants’ objections to this acquisition, the Board has paid
particular attention to the record of performance of
FNBB and Applicant in helping to meet community
credit needs since approving Applicant’s acquisition of
Southeastern Bank and Trust Company. Accordingly,
after considering the entire record, the Board makes
the following findings concerning Protestants’ allega­
tions.
With respect to Protestants’ claim of community
disinvestment, the Protestants assert that a large per­
centage of FNBB’s loans are made to out-of-state
commercial borrowers, and that the percentage of
FNBB investments in its CRA community has de­
clined. The Board notes, however, that between 1978
and 1979, FNBB substantially increased the number
and dollar volume of residential mortgage loans to
borrowers in its CRA community. In addition, during
the past two years FNBB almost doubled the dollar
amount of its home improvement loans to its commu­
nity. Also, FNBB extended over $11 million in HELP
Loans to its CRA community, Suffolk County, be­
tween January 1978 and September 1980. Moreover,
the Board has stressed that the CRA was not intended
to establish fixed ratios between deposits and loans in
particular neighborhoods, and cannot be read to re­
quire fixed proportions of retail or commercial depos­

5. 66 F e d e r a l R e s e r v e B u l l e t i n 162 (January 1980).

Legal Developm ents

its to retail or commercial lending.6 Accordingly the
Board does not necessarily regard Applicant’s role as
a large internationally-oriented commercial bank as
being inconsistent with helping to meet the credit
needs of its local community. Thus, the Board finds
the Protestants’ claim unsupported by the facts.
Protestants assert that Applicant’s efforts to ascer­
tain the credit needs of its CRA community have been
ineffective. In this regard, the Board notes that Appli­
cant and FNBB had previously committed to form a
number of committees composed of individuals repre­
senting broad community interests and specifically
designed to help FNBB ascertain the credit needs of
its community. Protestants have complained that the
current members of the board of directors serving on
FNBB’s Community Investment Committee are not
representative of the board; that FNBB has estab­
lished less than half of the 15 proposed neighborhood
committees; and that the neighborhood committees
which have been established have not led to a resolu­
tion of community issues. It appears from the record
that FNBB has within the past year taken a series of
positive steps to communicate more effectively with
local groups in an effort to ascertain the credit needs of
its local community. The Community Investment
Committee of FNBB’s board of directors, which moni­
tors FNBB compliance with CRA and reviews efforts
made by FNBB to meet community credit needs,
regularly reports its findings to FNBB’s full board of
directors. From the record, it appears that member­
ship on FNBB’s Community Investment Committee is
on a rotational basis involving all members of FNBB’s
board of directors. With respect to the neighborhood
committees, while FNBB concedes that during the
past year it has not established all 15 of the proposed
neighborhood committees, FNBB expects that four
more committees (for a total of 10 committees) will be
in operation shortly, and it has increased its efforts
(including hiring additional staff) to hasten the forma­
tion of the remaining committees. Moreover, while
formation of neighborhood committees has not had the
immediate result of FNBB returning to particular
neighborhoods in loans as much as FNBB accepts in
deposits, the Board has repeatedly stressed that it is
concerned more with the lender’s sensitivity to the
needs of each area than with the ratio of loans to
deposits in a particular area. Finally, the Board notes
that FNBB advertises its services through major me­
dia sources as well as in 11 local and trade newspa­
pers, and within the past year has increased its adver­
tising regarding the availability of residential
mortgages.
6. Manufacturers Hanover Trust Co., 66 F e d e r a l R e s e r v e B u l ­
l e t i n 601 (1980).




255

Protestants allege that Applicant’s actual invest­
ment in community development programs to which it
has made commitments has been minimal. However,
the Board finds no evidence in the record that Appli­
cant or FNBB are unwilling to meet these commit­
ments and Applicant has reaffirmed to the Board its
intention to fulfill all of its commitments. Moreover,
from the record it appears that Applicant has taken
steps to enhance its ability to participate in community
development programs. For example, Applicant has
recently established a subsidiary, First National Bos­
ton Mortgage Corporation, to provide a complete
array of mortgage services, including V.A., F.H.A.
and low-down-payment mortgages, thereby enabling
FNBB to fulfill its commitment to make loans avail­
able under the Boston Urban Housing Program.
The Protestants contend that FNBB has failed to
meet the credit needs of small businesses and small
farmers, and based on the record, the Board finds this
contention to be without merit. As of August 11, 1980,
FNBB had 5,000 loans totalling $106 million under a
special small business index rate, which allows loans
to small businesses and nonprofit corporations at rates
1.25 percent below FNBB base rate. In addition,
FNBB’s Urban Marketing Department, which helps
meet the needs of Boston’s low income and minority
entrepreneurs, has made more than $7 million in loans.
Moreover, in June 1980, FNBB agreed to provide $15
million to the Neighborhood Business Revitalization
Program, which is designed to provide financial assist­
ance packages to small and medium size businesses in
distressed neighborhoods. Finally, FNBB plays an
important role in making low cost loans available to
farmers by maintaining a multi-million dollar credit
line to Farm Credit Bank of Springfield, Massachu­
setts, to support the Farm Credit Bank’s commercial
paper borrowings.
With respect to FNBB’s record of residential mort­
gage lending, the Board recognizes that prior to 1978
FNBB was not primarily engaged in initiating residen­
tial mortgages. Nevertheless, FNBB has gradually but
consistently increased its presence in the residential
mortgage market. FNBB made more mortgage loans in
Suffolk County during the first six months of 1980 than
it had during all of 1977, and the total dollar volume of
residential loans during the first six months of 1980
almost equalled the total dollar volume of 1979. In
addition, there has been little difference between
FNBB’s acceptance rate for mortgage loans between
low- and moderate-income areas and other areas. With
respect to the home mortgage needs of low- and
moderate-income families, within the past year FNBB
has arranged for private mortgage insurance to enable
it to offer mortgages with low down payments. In
addition, FNBB is increasing from 50 percent to 80

256

Federal Reserve Bulletin □ March 1981

percent the amount of potential rental income which
may be counted toward monthly income in calculating
mortgage eligibility. Moreover, FNBB’s subsidiary,
First National Boston Mortgage Corporation, will pro­
vide new residential mortgage products and increased
housing funds through access to the secondary mar­
kets. Finally, FNBB has recently initiated a Communi­
ty Mortgage Program to promote the purchase of
homes by low- and moderate-income families at below
market rates, as well as a Community Home Improve­
ment Program to provide home improvement loans at
reduced interest rates for low- and moderate-income
residents.
Protestants have also challenged the adequacy of
the CRA records for several of Applicant’s other
subsidiary banks, in particular, Old Colony Bank of
Middlesex County (“ OCB-Middlesex” ) and OCBHampden in connection with their residential lending
activities. With respect to OCB-Middlesex, the Board
notes that OCB-Middlesex has substantially increased
the number of mortgages booked and that over 55
percent of these were in its CRA community. More­
over, both in number of loans and dollar value, OCBMiddlesex was the largest lender in Middlesex County
during the first six months of 1980. As a result, OCBMiddlesex was forced to briefly freeze its mortgage
lending activities, which out-paced the staff’s ability to
process home mortgage applications. With respect to
OCB-Hampden, the Board notes that it only began
residential lending during the fall of 1979. Neverthe­
less, between 1979 and 1980 OCB-Hampden has made
a substantial number of home mortgage loans, of
which 43 percent were in its CRA community. In
addition, OCB-Hampden has approved more mort­
gages in the first six months of 1980 than it did in all of
1979. Furthermore, OCB-Hampden has granted mort­
gages in 75 percent of the applications received from
its CRA community between 1979 and 1980. OCBHampden has also made its services known to its local
community, which has a significant Spanish-speaking
population, through the use of bilingual tellers and
advertising in a Spanish-language newspaper called
The Voice. After reviewing these and other facts of
record, the Board finds the Protestants claim to be
unsupported by the facts.
Protestants allege that certain of Applicant’s subsid­
iary banks have not complied with technical require­
ments of the CRA or the HMDA. These requirements
are designed to acquaint the community with each
bank’s lending policies and to permit members of the
community to comment on those policies. In particu­
lar, Protestants assert that Old Colony Bank of Essex
County had not compiled a required home mortgage
disclosure statement; FNBB had one letter (unrelated
to CRA) missing from its CRA public comment file;



and Old Colony Bank of Norfolk County’s home
mortgage disclosure statement was not made readily
accessible to the public. However, Protestants indi­
cate that the Old Colony Banks of Essex County and
Norfolk County have subsequently prepared HMDA
statements. With respect to FNBB’s public comment
file, since comments from other organizations were
properly placed in FNBB’s comment files, the Board
believes FNBB’s failure to place one letter in its file
was an isolated error in a generally good record of
technical compliance. It is the Board’s view that such
isolated errors are not a substantially adverse reflec­
tion on the CRA record of FNBB or Applicant’s other
eight subsidiary banks. See e.g., AmeriTrust, 66 Fed­
e r a l R eserve B u lle t in 238 (1980). Thus, the Board
considers that Protestants’ allegations in this regard
are without merit.
With respect to other convenience and needs con­
siderations, approval of the present application will
assist Bank in serving a larger number of borrowers
and in extending larger loans through overline partici­
pation with Applicant’s other banking affiliates. In
addition, Applicant will introduce a number of new
services through Bank, including 90 percent mort­
gages, cash management services, construction fi­
nancing, and trust and investment services to both
businesses and individuals. Applicant also proposes to
raise the interest rate paid on passbook 90-day notice
accounts and lower the minimum deposit required for
these accounts. Thus, based on its review of the facts
of record, including Applicant’s and FNBB’s perform­
ance with respect to the factors to be considered under
CRA, the Board concludes that considerations relating
to convenience and needs lend some weight toward
approval of the application.
Based on the record, it is the Board’s judgment that
approval of the application would be in the public
interest and that the application should be approved
for the reasons summarized above. This transaction
shall not be made before the thirtieth calendar day
following the effective date of this Order, or later than
three months from the effective date of this Order
unless such period is extended for good cause by the
Board or the Federal Reserve Bank of Boston, pursu­
ant to delegated authority.
By order of the Board of Governors, effective
February 25, 1981.

Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Rice, and Gramley. Absent and not
voting: Governor Teeters.

[ s e a l]

(Signed) J a m e s M c A f e e ,
Assistant Secretary of the Board.

Legal D evelopm ents

Heritage Wisconsin Corporation,
Wauwatosa, Wisconsin
Order Approving Acquisition o f Banks

Heritage Wisconsin Corporation, Wauwatosa, Wis­
consin, a bank holding company within the meaning of
the Bank Holding Company Act (“ Act” ), has applied
for the Board’s approval under section 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire 100 percent of
the voting shares (less directors’ qualifying shares) of
both Southridge Bank of Greendale, Greendale, Wis­
consin (“ Southridge Bank” ), and Northridge Bank,
Milwaukee, Wisconsin (“ Northridge Bank” ) (collec­
tively “ Banks” ).
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired
and the Board has considered the applications and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the seventh largest banking organization
in Wisconsin, controls seven commercial banks1 with
aggregate deposits of $386.4 million, representing ap­
proximately 1.9 percent of total deposits in commer­
cial banks in the state.2 Acquisition of Banks, with
aggregate deposits of $45.2 million, would increase
Applicant’s share of commercial bank deposits in
Wisconsin by 0.2 percent and would cause Applicant
to become the sixth largest banking organization in the
state. In view of the sizes of Banks, consummation of
the proposal would not result in a significant increase
in the concentration of commercial banking resources
in the state.
Banks are currently the only subsidiary banks of
Ridge Bancorporation of Wisconsin, Greendale, Wis­
consin, a registered bank holding company. North­
ridge Bank ($21.9 million in deposits) is the 36th
largest of 56 banking organizations located in the
Milwaukee banking market and holds approximately
0.3 percent of total market deposits in commercial
banks.3 Southridge Bank ($23.3 million in deposits) is
the 35th largest commercial banking organization lo­
cated in the relevant market and holds approximately
0.4 percent of total market deposits in commercial
banks. Together, Banks rank as the 19th largest com-

1. Applicant also owns less than 25 percent of the shares of two
banks with aggregate deposits of $85.1 million, representing 0.4
percent of deposits in commercial banks in Wisconsin.
2. Banking data are as of December 31, 1979, and reflect bank
holding company formations and acquisitions approved as of Decem­
ber 31, 1980.
3. The relevant banking market is approximated by the Milwaukee
Ranally Metropolitan Area.




257

mercial banking organization in the market. Applicant
is the fifth largest banking organization in the Milwau­
kee market with 11 offices of four of its subsidiary
banks holding aggregate deposits of $283.3 million,
representing 4.3 percent of total deposits in commer­
cial banks in the relevant market. Consummation of
the transactions will increase Applicant’s share of
market deposits by 0.7 percent and would not cause
Applicant’s rank within the market to change. Al­
though acquisition of Banks will eliminate some com­
petition, the Milwaukee market is not highly concen­
trated and there will remain a large number of
independent banks as entry vehicles for banking orga­
nizations not currently represented in the market. In
view of all the facts of record including the structure of
the relevant market and the size of Banks, the Board is
of the view that consummation of the transactions will
have only slightly adverse effects on competition in the
Milwaukee market.
The financial and managerial resources of Applicant
and its subsidiaries are considered generally satisfac­
tory and its future prospects appear favorable. The
financial and managerial resources of Banks are satis­
factory and their future prospects as affiliates of Appli­
cant appear favorable. Accordingly, banking factors
are consistent with approval of the applications. Appli­
cant proposes to expand banking hours at Banks and
to institute a number of services not now available at
Banks, including automatic transfer services, trust
services, investment management, leasing, and creditrelated insurance activities. In the Board’s view, the
benefits to the public that may be expected from
consummation of the proposed transactions lend
weight sufficient to outweigh any adverse effects on
competition that may result from consummation of the
proposals. Therefore, it is the Board’s judgment that
the proposed transaction would be in the public inter­
est and that the applications should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
transactions shall not be made before the thirtieth
calendar day following the effective date of this Order
or later than three months after that date, unless such
period is extended for good cause by the Board, or by
the Federal Reserve Bank of Chicago pursuant to
delegated authority.
By order of the Board of Governors, effective
February 23, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Rice, and Gramley. Absent and not
voting: Governor Teeters.

[ s e a l]

(Signed) J a m e s M c A f e e ,
Assistant Secretary of the Board.

258

Federal Reserve Bulletin □ March 1981

Orders Under Section 2 o f Bank
Holding Company A ct

Citicorp,
New York, New York
Order Granting D eterm ination Under
the Bank Holding Com pany A ct

Citicorp, New York, New York, a bank holding com­
pany within the meaning of section 2(a) of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
§ 1841 et seq.) (the “ Act” ), has requested a determi­
nation pursuant to section 2(g)(3) of the Act that, with
respect to the sale by Citicorp of the assets of its travel
agency business to VTS Travel Enterprises, Inc., New
York, New York (“ VTS’), Citicorp is not in fact
capable of controlling VTS notwithstanding the fact
that VTS is indebted to Citicorp in connection with the
sale.
Under the provisions of section 2(g)(3) of the Act,
shares1 transferred after January 1, 1966, by a bank
holding company to a transferee that is indebted to the
transferor are deemed to be indirectly owned or con­
trolled by the transferor unless the Board, after oppor­
tunity for hearing, determines that the transferor is not
in fact capable of controlling the transferee. No such
request for a hearing has been received by the Board.
Citicorp has submitted to the Board evidence to show
that it is not in fact capable of controlling VTS, and the
Board has received no contradictory evidence. It is
hereby determined that Citicorp is not in fact capable
of controlling VTS. This determination is based upon
the evidence of record in this matter, including the
following facts.
On May 30, 1980, Citicorp transferred its entire
interest in the travel agency business, consisting of
inventory, accounts receivable, licenses, suppliers’
warranties, and trademark and service mark rights, to
VTS, a corporation owned by former employees of
Citicorp’s travel agency business. Citicorp received as
its consideration cash and VTS’ promissory note for
the remainder of the purchase price. The sale appears
to have been the result of arm’s length negotiations,
and there is no evidence to indicate that the sale was
motivated by an intent to evade the requirements of
the Act. A substantial portion of the initial indebted­
ness has been repaid by VTS, and, based on the

1. Although section 2(g)(3) refers to transfers of “ shares,” the
Board has previously taken the position that a transfer of such a
significant volume of assets that the transfer may in effect constitute
the disposition of a separate activity of a company is deemed to
involve a transfer of “ shares” of that company. 12 C.F.R. § 225.139.




record, there is no evidence that VTS will be unable to
repay the remaining indebtedness in accordance with
the terms of the note. Moreover, the indebtedness is
not secured by the property of VTS, but rather by
personal guarantees of VTS’ shareholders and letters
of credit. Finally, the requirements of the indebted­
ness are of the type normally imposed on a borrower
by a prudent institutional lender and are reasonably
required to protect Citicorp’s interest.
Although VTS will continue to provide travel serv­
ices to employees of Citicorp and its subsidiary,
Citibank, N .A ., there is no requirement that they use
the services of VTS; Citicorp has represented that all
employees have been notified that they may use VTS
or any other travel agency of their choice. In addition,
none of the shareholders of VTS has remained an
officer, director or employee of Citicorp or any of its
subsidiaries, and no present officer, director or em­
ployee of Citicorp or any of its subsidiaries is an
officer, director or employee of VTS.
Accordingly, it is ordered that the request of Citi­
corp for a determination pursuant to section 2(g)(3) is
granted. This determination is based on representa­
tions made to the Board by Citicorp. In the event that
the Board should hereafter determine that facts mate­
rial to this determination are otherwise than as repre­
sented, or that Citicorp or VTS has failed to disclose to
the Board other material facts, this determination may
be revoked, and any change in the factors and circum­
stances relied upon by the Board in making this
determination could result in the Board’s reconsider­
ation of this determination.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(1)), effective February 5, 1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Certifications Pursuant to the Bank Holding
Company Tax A ct o f 1976

American General Corporation,
Houston, Texas
Final Certification Pursuant to the Bank Holding
Company Tax A c t o f 1976

American General Corporation (“ Company”), Hous­
ton, Texas, the successor corporation to American
General Insurance Company, Houston, Texas
(“AG”), has requested a final certification pursuant to
section 1101(e) of the Internal Revenue Code (the
“ Code”), as amended by section 2(a) of the Bank

Legal Developm ents

Holding Company Act of 1976 (the “ Tax Act” ), that it
has (before the expiration of the period prohibited
property is permitted to be held under the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.)
(“ BHC Act” ) ceased to be a bank holding company.
In connection with this request, the following infor­
mation is deemed relevant for purposes of issuing the
requested certification:1
1. Effective June 23, 1977, the Board issued a prior
certification pursuant to section 1101(b) of the Code
with respect to the proposed divestiture by AG of
2,632,042 shares of Class B nonvoting stock of
Texas Commerce Bancshares, Inc. (“ TCB” ), then
held by AG, through the pro rata distribution of such
shares to the holders of common stock of AG.
2. The Board’s Order certified that:
A. AG is a qualified bank holding corporation,
within the meaning of section 1103(b) of the Code,
and satisfies the requirements of that subsection;
B. The shares of TCB that AG proposes to
distribute to its shareholders are all or part of the
property by reason of which AG controls (within
the meaning of section 2(a) of the BHC Act) a
bank or bank holding company ; and
C. The distribution of such shares of TCB is
necessary or appropriate to effectuate the pur­
poses of the BHC Act.
3. Following issuance of the prior tax certification in
the years 1977 through 1980, AG and Company took
the following actions to divest all of the 2,632,042
shares of TCB stock:
A. 1,328,950 TCB Class B shares were divested
by AG through the conversion of debentures
which had been issued in June of 1974;
B. 1,300,483 TCB Class B shares were divested
by AG through annual pro rata dividend distribu­
tions to shareholders of AG; and
C. 2,609 TCB Class B shares were sold by Com­
pany through sales in the open market on Aug­
ust 8, 1980. Company does not currently hold
any interest in TCB.
4. Company has committed that no director, officer,
or policymaking employee of Company serves or
will serve in a similar capacity with TCB or any of
its subsidiaries;
5. Company has committed that no director, officer
or policymaking employee of Company, or a person
owning 25 percent or more of the shares of Compa­
ny, or any combination of such persons, owns or
controls or will own or control, directly or indirect-

1. This information derives from Company’s communications with
the Board concerning its request for this certification, Company’s
Registration Statement filed with the Board pursuant to the BHC Act,
and other records of the Board.




259

ly, 25 percent or more of the voting shares of TCB or
any of its subsidiaries.
6. Company does not exercise any influence or
control over TCB or any of its subsidiaries.
7. Company does not directly or indirectly own,
control, or have power to vote 25 percent or more of
any class of voting securities of any bank or any
company that controls a bank.
8. Company does not control in any manner the
election of a majority of the directors, or exercise a
controlling influence over the management or poli­
cies of TCB or any bank or company that controls a
bank.
On the basis of the foregoing information, it is
hereby certified that Company has (before the expira­
tion of the period prohibited property is permitted
under the BHC Act to be held by a bank holding
company) ceased to be a bank holding company, and
has disposed of all its banking property within the
meaning of section 1103(g) of the Tax Act.
This certification is based upon the representations
made to the Board by Company and upon the facts set
forth above. In the event the Board should determine
that facts material to this certification are otherwise
than as represented by Company, or that Company
has failed to disclose to the Board other material facts,
it may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.3(b)(3)), effective February 26, 1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Homewood Corporation,
Columbus, Ohio
Final Certification Pursuant to the Bank Holding
Company Tax A ct o f 1976

Homewood Corporation (formerly Franklin Corp.),
Columbus, Ohio (“ Homewood”), has requested a
final certification pursuant to section 6158 (c)(2) of the
Internal Revenue Code (“ Code”), as added by section
3(a) of the Bank Holding Company Tax Act of 1976,
that it has (before the expiration of the period prohibit­
ed property is permitted under the Bank Holding
Company Act (12 U.S.C. § 1841 et seq.) (“ BHC Act”)
to be held by a bank holding company) ceased to be a
bank holding company.
In connection with this request, the following infor­

260

Federal Reserve Bulletin □ March 1981

mation is deemed relevant for the purposes of issuing
the requested certification:1
1. Effective October 1, 1980, the Board issued a
prior certification pursuant to section 6158(a) of the
Code with respect to the proposed sale of 3,886
shares of common stock (“ Bank Shares” ) of The
Franklin Bank, Grove City, Ohio (“ Bank” ), to
Centran Corporation, Cleveland, Ohio (“ Centran” ).
The Board’s Order certified that:
A. Homewood is a qualified bank holding corpo­
ration within the meaning of section 1103(b) of the
Code, and satisfies the requirements of that sec­
tion;
B. 2,545 of Bank Shares, representing 63.6 per­
cent of the outstanding voting shares of Bank, that
Homewood proposes to sell to Centran are all or
part of the property by reason of which Home­
wood controls within the meaning of section 2(a)
of the BHC Act a bank or bank holding company;
and
C. The sale of such shares of Bank is necessary or
appropriate to effectuate the policies of the BHC
Act.
2. On October 1, 1980, following prior certification
of the transaction by the Board of Governors, acting
through its General Counsel, Homewood Corpora­
tion sold to Centran all of its interest in Bank.
3. The prior certification issued on October 1, 1980,
was granted upon the condition that no person
holding an office or position (including an advisory
or honorary position) as a director or officer of
Homewood will serve in a similar capacity with
Bank, Centran, or its subsidiaries. Effective Octo­
ber 1, 1980, all such interlocking relationships be­
tween Homewood and Centran and their respective
subsidiaries were terminated.
4. Homewood has represented that it does not
exercise a controlling influence over the manage­
ment or policies of Bank, or any other bank or bank
holding company.
5. Homewood has represented that it does not
control in any manner the election of a majority of
the directors, or own or control, directly, or indi­
rectly, more than 5 percent of the outstanding shares
of any bank or bank holding company.
On the basis of the foregoing information, it is
hereby certified that Homewood has (before the expi­
ration of the period prohibited property is permitted

1. This information derives from Homewood’s correspondence
with the Board concerning its request for this certification, Home­
wood’s Registration Statement filed with the Board pursuant to the
BHC Act, and other records of the Board.




under the BHC Act to be held by a bank holding
company) ceased to be a bank holding company.
This certification is based upon the representations
and commitments made to the Board by Homewood
and upon the facts set out above. In the event the
Board should hereafter determine that facts material to
this certification are otherwise than as represented by
Homewood, or that Homewood has failed to disclose
to the Board other material facts or to fulfill any of its
commitments, the Board may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel pursuant to delegated authority
(12 C.F.R. § 265.2(b) (3)), effective February 12, 1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Strachan Construction Company, Inc.,
Fort Walton Beach, Florida
Final Certification Pursuant to the Bank Holding
Company Tax A c t o f 1976

Strachan Construction Company, Inc., Fort Walton
Beach, Florida (“ Strachan” ), has requested a final
certification pursuant to section 1101(e) of the Internal
Revenue Code (“ Code” ), as amended by section 2(a)
of the Bank Holding Company Tax Act of 1976 (“Tax
Act”), that it has (before the expiration of the period
prohibited property is permitted under the Bank Hold­
ing Company Act (12 U.S.C. § 1841 et seq.) (“ BHC
Act” ) to be held by a bank holding company) ceased to
be a bank holding company.
In connection with this request, the following infor­
mation is deemed relevant for purposes of issuing the
requested certification:1
1. Effective October 21, 1980, the Board issued a
prior certification pursuant to section 1101(b) of the
Code with respect to the proposed divestiture by
Strachan of 11,966 shares of First City Bank of Fort
Walton Beach, Fort Walton Beach, Florida
(“ Bank”), then held by Strachan through the pro
rata distribution of such shares to Strachan’s three
shareholders.
2. The Board’s Order certified that:
A. Strachan is a qualified bank holding corpora­
tion within the meaning of subsection (b) of sec­
tion 1103 of the Code and satisfies the require­
ments of that subsection;

1.
This information derives from Strachan’s communications with
the Board concerning its request for this certification, Strachan’s
Registration Statement filed with the Board pursuant to the BHC Act,
and other records of the Board.

Legal D evelopm ents

B. The 11,966 shares of Bank that Strachan pro­
poses to distribute to its shareholders are all or
part of the property by reason of which Strachan
controls (within the meaning of section 2(a) of the
BHC Act) a bank or a bank holding company; and
C. The distribution of such shares is necessary or
appropriate to effectuate the policies of the BHC
Act.
3. On December 10,1980, Strachan distributed to its
shareholders on a pro rata basis 13,751 shares of
Bank.2
4. Strachan has represented to the Board that it no
longer owns or controls voting shares of any bank or
any company that controls a bank.
5. Strachan has represented to the Board that there
are no interlocking director, officer and management
official positions between Strachan and Bank. Stra­
chan has represented that it does not control in any
manner the election of a majority of directors or
exercise a controlling influence over the manage­
ment or policies of Bank, any other bank or any
company that controls a bank.
On the basis of the foregoing information, it is
hereby certified that Strachan has (before the expira­
tion of the period prohibited property is permitted
under the BHC Act to be held by a bank holding
company) ceased to be a bank holding company.
This certification is based upon representations and
commitments made to the Board by Strachan and
upon the facts set forth above. In the event the Board
should hereafter determine that facts material to this
certification are otherwise than as represented by
Strachan or that Strachan has failed to disclose to the
Board other material facts or to fulfill any commit­
ments made to the Board in connection herewith, it
may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority,
(12 C.F.R. § 265.2(b)(3)), effective February 6, 1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

2. Subsequent to July 7, 1970, Strachan acquired shares of Bank,
representing 4.1 percent of Bank’s outstanding shares. Strachan did
not request certification for such shares.




261

Order A pproved Under Bank M erger A ct

American Bank of Commerce,
Albuquerque, New Mexico
Order Approving M erger o f Bank

American Bank of Commerce, Albuquerque, New
Mexico (“Applicant”), a state member bank of the
Federal Reserve System, is a wholly owned subsidiary
of Bank Securities, Inc., Albuquerque, New Mexico
(“ BSI”). Applicant has applied to the Board pursuant
to the Bank Merger Act (12 U.S.C. § 1828(c)), for
approval to merge with Republic Bank, Albuquerque,
New Mexico (“ Bank”), under the charter and title of
Applicant. As an incident to the proposed merger, the
existing offices of Bank would become branch offices
of the resulting bank.
As required by the Bank Merger Act, notice of the
proposed transaction has been published and reports
on competitive factors have been requested from the
Attorney General, the Comptroller of the Currency,
and the Federal Deposit Insurance Corporation. The
time for filing views and comments has expired and the
application and all comments received have been
considered in light of the factors set forth in the Act.
Applicant’s parent, BSI, is the fourth largest bank­
ing organization in New Mexico and controls eight
subsidiary banks with $364 million in deposits, repre­
senting 7.7 percent of the total state bank deposits.1
Bank is the 43rd largest bank in the state, with deposits
of $33 million, representing less that 1 percent of
statewide commercial bank deposits, and its acquisi­
tion by Applicant would not alter BSI’s or Applicant’s
statewide ranking or significantly increase their share
of deposits in the state. Accordingly, consummation of
the proposal would not have an appreciable effect on
the concentration of banking resources in New Mexico.
Two of BSI’s subsidiary banks compete in the
relevant banking market.2 Applicant is the fourth
largest bank in the Albuquerque banking market, with
total deposits of $99.6 million, representing approxi­
mately 5.6 percent of commercial bank deposits in the
market. BSI’s other banking subsidiary, First State
Bank, Rio Rancho, has total deposits of $33.4 million
representing approximately 1.7 percent of commercial
bank deposits and ranks as the 10th largest bank in the
Albuquerque banking market. Therefore, BSI has ag­
gregate deposits in the relevant market totaling $133
million, representing 7.4 percent of commercial bank
deposits and ranks as the fourth largest banking orga­
nization in the Albuquerque market.
1. All banking data are as of December 31, 1979.
2. The Albuquerque banking market is the relevant market and is
approximated by the Albuquerque RMA.

262

Federal Reserve Bulletin □ March 1981

Bank, with total deposits of $33 million, represent­
ing 1.9 percent of the commercial bank deposits in the
market, is the ninth largest of thirteen banks in the
Albuquerque banking market and competes in no
other markets. Upon consummation of the proposed
transaction, BSI and Applicant would hold total mar­
ket deposits of $166 and $133 million, respectively,
representing 9.3 and 7.5 percent of the market
deposits.
Approval of the proposal would eliminate some
existing competition within the Albuquerque banking
market. While the market shares of BSI and Applicant
would increase slightly, their respective ranks within
the market would be unchanged and they would re­
main substantially smaller in absolute size and market
share than the three larger banking organizations in the
Albuquerque banking market. Moreover, numerous
independent banking alternatives would remain avail­
able within the market. Consequently, it appears that
the effect of the merger on existing competition in the
Albuquerque banking market would not be significant.
After examining information of record concerning
the financial and managerial resources of Applicant,
BSI and Bank, the Board concludes that the financial
and managerial resources and future prospects of the
institutions involved, as well as the banking factors,
are consistent with approval. In fact, consummation of
this merger would have a beneficial effect on Applicant
and BSI. In addition, as a result of consummation of
the proposed merger, the resulting bank will be able to

offer increased lending limits and other expanded
services to their customers. In particular, the resulting
bank will offer trust services, the convenience of
automatic teller machines and debit-card system, serv­
ices previously unavailable from Bank. The Board
believes that considerations relating to the conve­
nience and needs of the communities to be served lend
weight toward approval and are sufficient to outweigh
any slightly adverse competitive effects that may be
associated with this proposal. Accordingly, the Board
finds that consummation of the proposal would be
consistent with the public interest. On the basis of the
record and for the reasons summarized above, the
application to merge and, incident thereto, to establish
branches, is hereby approved.
The transaction shall not be consummated before
the thirtieth calendar day following the effective date
of this Order or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Kansas City pursuant to
delegated authority.
By order of the Board of Governors, effective
February 5, 1981.
Voting for this action: Vice Chairman Schultz and Gover­
nors Partee, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Teeters.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

O r d e r s A p p r o v in g A p p l ic a t io n s U n d e r th e B a n k H o l d in g C o m p a n y A c t
Ba n k M erger A ct

and

By the Board o f Governors

During February 1981 the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3

Applicant
First City Bancorporation of Texas,
Inc.
Houston, Texas
First City Bancorporation of Texas,
Inc.,
Houston, Texas
First Union Bancorporation and
Firstsub, Inc.
St. Louis, Missouri




Bank(s)

Board action
(effective
date)

Central Park Bank,
San Antonio, Texas

February 4, 1981

Windsor Park Bank,
San Antonio, Texas

February 3, 1981

Columbia Union National Bank and
Trust Company
Kansas City, Missouri

February 2, 1981

Legal Developm ents

263

Section 3—continued

Applicant

Bank(s)

Metropolitan Bancorporation, Inc.
Minneapolis, Minnesota
Southwest Bancshares, Inc.,
Houston, Texas

Metropolitan State Bank,
Minneapolis, Minnesota
Texas Bank of Beaumont
Beaumont, Texas

Board action
(effective
date)
February 25, 1981
February 6, 1981

By Federal R eserve Banks

Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders
are available upon request to the Reserve Banks.
Section 3
Applicant

Bank(s)

American City Bancorp, Inc.,
Tullahoma, Tennessee
Arapahoe Financial Corp.,
Arapahoe, Nebraska
Avenue Bancorporation,
Chicago, Illinois

American City Bank,
Tullahoma, Tennessee
Citizens State Bank,
Arapahoe, Nebraska
Avenue Bank and Trust Company
of Oak Park,
Oak Park, Illinois
Goodhue State Bank
Goodhue, Minnesota
Chisago County State Bank,
Center City, Minnesota
White Rock State Bank,
White Rock, Minnesota
Lake National Bank,
Painesville, Ohio
Melvin Savings Bank,
Melvin, Iowa
Plaza National Bancshares, Inc.,
St. Louis County, Missouri
Plaza Bank of Westport
St. Louis County, Missouri
Boelus State Bank,
Boelus, Nebraska
The Cass County Bank,
Plattsmouth, Nebraska
Blue Earth State Bank,
Blue Earth, Minnesota
Mountain Trust Company
Stowe, Vermont
State Bank of Cokato,
Cokato, Minnesota

BancMidwest Corporation
St. Paul, Minnesota

Banc One Corporation,
Columbus, Ohio
Benz Holding Company,
Melvin, Iowa
Boatmen’s Bancshares, Inc.,
St. Louis, Missouri

Boelus Investment Co.,
Boelus, Nebraska
Cass County State Company,
Plattsmouth, Nebraska
Central Bancorporation, Inc.,
Newport, Minnesota
Chittenden Corporation,
Burlington, Vermont
Cokato Bancshares, Inc.,
Cokato, Minnesota




Reserve
Bank

Effective
date

Atlanta

February 3, 1981

Kansas City

February 12, 1981

Chicago

February 4, 1981

Minneapolis

February 12, 1981

Cleveland

February 5, 1981

Chicago

February 20, 1981

St. Louis

February 3, 1981

Kansas City

February 2, 1981

Kansas City

February 13, 1981

Minneapolis

February 11, 1981

Boston

February 17, 1981

Minneapolis

February 2, 1981

264

Federal Reserve Bulletin □ March 1981

Section 3—continued

Applicant

Commerce Southwest Inc.,
Dallas, Texas
Daingerfield Bancshares, Inc.,
Daingerfield, Texas
Financial Growth Systems, Inc.,
Inverness, Florida

Finlay son Bancshares, Inc.,
Finlayson, Minnesota
First of Austin Bancshares, Inc.,
Austin, Texas
First Bancorp, Inc.,
Corsicana, Texas

First Bancorp of War, Inc.,
Welch, West Virginia
First Community Bancshares,
Inc.,
Lone Grove, Oklahoma
First Granbury Bancorporation,
Granbury, Texas
First New Mexico Bankshare
Corporation,
Albuquerque, New Mexico
First State Bancorporation,
Tiptonville, Tennessee
First Medicine Lodge Banc­
shares, Inc.,
Medicine Lodge, Kansas
First National Financial Corp. of
Martinsville, Martinsville,
Indiana
First Peoples Bancorp, Inc.,
Jefferson City, Tennessee
Geneseo Bancshares, Inc.,
Geneseo, Kansas
Guardian Banks Financial Corp.,
Seminole, Florida




Bank(s)

eserve
Bank

Board action
(effective
, . .
date)

The Farmers & Merchants National Bank of Kaufman,
Kaufman, Texas
The National Bank of Daingerfield,
Daingerfield, Texas
Citizens First National Bank of
Citrus County,
Inverness, Florida
Citizens First National Bank of
Crystal River,
Crystal River, Florida
Lake County Bank,
Leesburg, Florida
First State Bank of Finlayson,
Finlayson, Minnesota
Western National Bank,
Austin, Texas
First Greenville Bancshares, Inc.,
Greenville, Texas
First Greenville National Bank,
Greenville, Texas
The Bank of War,
War, West Virginia
First Community Bank of Lone
Grove,
Lone Grove, Oklahoma
The First National Bank of Granbury,
Granbury, Texas
Southwest National Bank,
Hobbs, New Mexico

Dallas

February 2, 1981

Dallas

January 30, 1981

Atlanta

January 30, 1981

Minneapolis

February 12, 1981

Dallas

January 30, 1981

Dallas

February 9, 1981

Richmond

January 29, 1981

Kansas City

February 23, 1981

Dallas

January 29, 1981

Kansas City

February 17, 1981

First State Bank and Trust Company,
Tiptonville, Tennessee
First National Bank of Medicine
Lodge,
Medicine Lodge, Kansas
First National Bank, Martinsville,
Martinsville, Indiana

St. Louis

February 13, 1981

Kansas City

January 30, 1981

Chicago

February 5, 1981

Atlanta

January 30, 1981

Kansas City

February 12, 1981

Atlanta

January 30, 1981

First Peoples Bank of Jefferson
County,
Jefferson City, Tennessee
The Citizens State Bank,
Geneseo, Kansas
Guardian Bank,
Seminole, Florida

Legal Developm ents

265

Section 3—continued

Applicant

Gulf Coast Bancshares, Inc.,
Alvin, Texas
Hawkeye Bancorporation,
Des Moines, Iowa

Henry County Bancorp, Inc.,
Cambridge, Illinois
Iowa-Grant Bankshares, Inc.,
Cobb, Wisconsin
Merchants Financial Corporation,
Dallas, Texas
Middle Georgia Corporation,
Ellaville, Georgia
Montfort Bancorporation, Inc.,
Platteville, Wisconsin
NBC Bancshares, Inc.,
Austin, Texas

Peoples Bancshares, Inc.,
Colorado Springs, Colorado
Security Bancorporation, Inc.,
Newport, Minnesota
Southeast Capital Corporation,
Quitman, Mississippi
Southern Indiana Bancorp, Inc.,
Newburgh, Indiana
United Banks of Wisconsin, Inc..
Madison, Wisconsin
Valley Bank Holding Company,
Security, Colorado
Weldon Bancshares, Inc.,
Weldon, Illinois




Bank(s)

First National Bank of Alvin,
Alvin, Texas
Cedar River Bancorporation,
Cedar Rapids, Iowa
The United State Bank,
Cedar Rapids, Iowa
Peoples Bank of Cambridge,
Cambridge, Illinois
Cobb State Bank,
Cobb, Wisconsin
Merchants State Bank,
Dallas, Texas
Bank of Ellaville,
Ellaville, Georgia
Citizens State Bank,
Montfort, Wisconsin
National Bank of Commerce,
Austin, Texas
National Bank of CommerceSouth
Austin, Texas
Peoples Bank of Westville,
Westville, Oklahoma
Security State Bank,
Ladysmith, Wisconsin
Southeast Mississippi Bank,
Quitman, Mississippi
Southern Indiana Bank and Trust
Company,
Newburgh, Indiana
Farmers & Citizens Bank,
Sauk City, Wisconsin
The Bank of Fountain Valley,
Security, Colorado
Weldon State Bank,
Weldon, Illinois

Reserve
Bank

Board action
(effective
date)

Dallas

February 19, 1981

Chicago

February 17, 1981

Chicago

February 17, 1981

Chicago

February 11, 1981

Dallas

February 13, 1981

Atlanta

February 9, 1981

Chicago

February 11, 1981

Dallas

February 19, 1981

Kansas City

February 13, 1981

Minneapolis

February 11, 1981

Atlanta

February 17, 1981

St. Louis

February 6, 1981

Chicago

February 12, 1981

Kansas City

February 12, 1981

Chicago

February 11, 1981

266

Federal Reserve Bulletin □ March 1981

Sections 3 and 4
Nonbanking
company
(or activity)

Applicant

Bank(s)

First Guthrie Banc­
shares, Inc.,
Guthrie,
Oklahoma

First Union Corpora­
tion,
Stillwater,
Oklahoma
The First National
Bank and Trust
Company of Still­
water,
Stillwater,
Oklahoma
Lakeland State Bank,
Pequot Lakes,
Minnesota

Lakeland Agency,
Inc.,
Pequot Lakes,
Minnesota

Reserve
Bank

Effective
date

consumer finance ac­
tivities and creditrelated insurance
sales

Kansas City

February 6, 1981

to continue to engage
in general insurance
activities in Pequot
Lakes, Minnesota,
a town of less than
5,000 population

Minneapolis

February 10, 1981

Section 4
Nonbanking
company
(or activity)

Applicant
Deposit Guaranty Corp.
Jackson, Mississippi

Marsall & Ilsley Corporation,
Milwaukee, Wisconsin
Morrill Bancshares, Inc.,
Sabetha, Kansas
Southern Bancorporation, Inc.

Effective
date

to engage in the activity of servicing
the loans and other extensions of
credit acquired through an existing
subsidiary
to continue to engage in leasing activi­
ties through its subsidiary
to engage in general insurance agency
activities
World Acceptance Corporation and
World Finance Corporation of
Georgia, Family Financial Services
Inc., Fort Valley, Georgia

February 5, 1981

February 7, 1981
February 4, 1981
February 6, 1981

Ord e rs A ppr o v ed Un d e r Ba n k M erger A ct
By Federal R eserve Banks

A
Applicant
The Carroll County Trust Company,
Conway, New Hampshire



.
Banks

Reserve
_ .
Bank

Effective
date

Lafayette National Bank,
Littleton, New Hampshire

Boston

February 17, 1981

Legal D evelopm ents

267

P e n d in g Ca s e s In v o l v in g th e B o a r d o f G o v e r n o r s

This list o f pending cases does not include suits
against the Federal R eserve Banks in which the Board
o f Governors is not nam ed a party.

U.S. League o f Savings Associations v. D epository
Institutions D eregulation Com m ittee, et al., filed

June 1980, U.S.D.C. for the District of Columbia.
Berkovitz, et al. v. Governm ent o f Iran, et al., filed

Wilshire Oil Com pany o f Texas v. Board o f G over­
nors, et al., filed U.S.D.C. for New Jersey.
9 to 5 Organization fo r Women Office Workers v.
Board o f G overnors , filed December 1980,

U.S.D.C. for the District of Massachusetts.
Wilshire Oil Com pany o f Texas v. Board o f G over­
nors, filed December 1980, U.S.C.A. for the District

of Columbia.
Securities Industry A ssociation v. Board o f G over­
nors, et a l ., filed October 1980, U.S.D.C. for the

District of Columbia.
Securities Industry A ssociation v. Board o f G over­
nors, et al., filed October 1980, U.S.C.A. for the

District of Columbia.
A. G. Becker, Inc. v. Board o f Governors, et al., filed

October 1980, U.S.D.C. for the District of Colum­
bia.
A. G. Becker, Inc. v. B oard o f Governors, et a l ., filed
October 1980, U.S.C.A. for the District of Colum­
bia.
Independent Insurance Agents o f Am erica and Inde­
pendent Insurance Agents o f Missouri v. Board o f
G overnors , filed September 1980, U.S.C.A. for the

Eighth Circuit.
Independent Insurance A gents o f Am erica and Inde­
pendent Insurance Agents o f Virginia v. Board o f
G overnors , filed September 1980, U.S.C.A. for the

Fourth Circuit.
N ebraska Bankers A ssociation, et al. v. Board o f
Governors, et a l ., filed September 1980, U.S.D.C.

for the District of Nebraska.
Republic o f Texas Corporation v. Board o f Governors,

filed September 1980, U.S.C.A. for the Fifth Cir­
cuit.
Consumers Union o f the United States, Inc., v. Board
o f Governors et al., filed August 1980, U.S.D.C. for
the District of Columbia.
A. G. Becker Inc., v. B oard o f Governors, et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Otero Savings and Loan A ssociation v. Board o f
Governors, filed August 1980, U.S.D.C. for the
District of Columbia.
Edwin F. Gordon v. B oard o f Governors, et al., filed
August 1980, U.S.C.A. for the Fifth Circuit.
Martin-Trigona v. Board o f Governors, filed July
1980, U.S.C.A. for the District of Columbia.




June 1980, U.S.D.C. for the Northern District of
California.
Mercantile Texas Corporation v. B oard o f G overnors ,
filed May 1980, U.S.C.A. for the Fifth Circuit.
Corbin, Trustee v. United S tates, filed May 1980,
United States Court of Claims.
Louis J. R oussel v. Board o f Governors, filed April
1980, U.S.D.C. for the District of Columbia.
U lyssess S. Crockett v. U nited S tates et al., filed April
1980, U.S.D.C. for the Eastern District of North
Carolina.
County N ational Bancorporation and TGB Co. v.
Board o f Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
Gregory v. Board o f Governors, filed July 1979,
U.S.D.C. for the District of Columbia.
Donald W. Riegel, Jr. v. Federal Open M arket Com­
m ittee, filed July 1979, U.S.D.C. for the District of
Columbia.
Connecticut Bankers A ssociation, et al., v. Board o f
Governors, filed May 1979, U.S.C.A. for the Dis­
trict of Columbia.
Independent Insurance Agents o f Am erica, et al., v.
Board o f Governors, filed May 1979, U.S.C.A. for
the District of Columbia.
Independent Insurance A gents o f Am erica, et al., v.
Board o f Governors, filed April 1979, U.S.C.A. for
the District of Columbia.
Independent Insurance A gents o f Am erica, et al., v.
Board o f Governors, filed March 1979, U.S.C.A. for
the District of Columbia.
Security Bancorp and Security N ational Bank v.
Board o f Governors, filed March 1978, U.S.C.A. for
the Ninth Circuit.
Investm ent Com pany Institute v. Board o f Governors,
filed September 1977, U.S.D.C. for the District of
Columbia.
Roberts Farms, Inc., v. Com ptroller o f the Currency ,
et al., filed November 1975, U.S.D.C. for the South­
ern District of California.
D avid Merrill, et al. v. Federal Open M arket Com mit­
tee, filed May 1975, U.S.D.C. for the District of
Columbia.

Al

Financial and Business Statistics
CO N TEN TS

D o m e s tic F in a n cia l S ta tis tic s

We e k l y R e p o r t in g C o m m e r c ia l B a n k s

A3 Monetary aggregates and interest rates
A4 Reserves of depository institutions, reserve,
bank credit
A5 Reserves and borrowings of depository
institutions
A6 Federal funds and repurchase agreements of
large member banks

Assets and liabilities
A 18 All reporting banks
A 19 Banks with assets of $ 1 billion or more
A20 Banks in New York City
A21 Balance sheet memoranda
A l l Commercial and industrial loans
A23 Gross demand deposits of individuals,
partnerships, and corporations

P o l ic y I n s t r u m e n t s
A l Federal Reserve Bank interest rates
A8 Depository institutions reserve requirements
A9 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A 10 Federal Reserve open market transactions

Federal R eserve B a n k s

F in a n c ia l M a r k e t s

A23 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A24 Terms of lending at commercial banks
A25 Interest rates in money and capital markets
A26 Stock market—Selected statistics

A ll Condition and Federal Reserve note statements
A 12 Maturity distribution of loan and security
holdings

A l l Savings institutions—Selected assets and

M o n e t a r y a n d C r e d it A g g r e g a t e s

F ed er al F in a n c e

A 12 Bank debits and deposit turnover
A 13 Money stock measures and components
A 14 Aggregate reserves of depository institutions
and member bank deposits
A 15 Loans and securities of all commercial banks

A28
A29
A30
A30

C o m m e r c ia l B a n k s

A 16 Major nondeposit funds
A17 Assets and liabilities, last Wednesday-of-month
series




liabilities

Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government marketable securities—
Ownership, by maturity
A32 U.S. government securities dealers—
Transactions, positions, and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding

A2

Federal Reserve Bulletin □ March 1981

S e c u r it ie s M a r k e t s a n d
C o r p o r a t e F in a n c e

A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
A36 Nonfinancial corporations—Assets and liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities; business credit

R e a l E sta te

A53 U.S. reserve assets
A54 Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions

R e p o r t e d b y B a n k s in th e U n it e d S tates

A56
A57
A59
A60

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks’ own claims on foreigners
Banks’ own and domestic customers’ claims on
foreigners
A60 Banks’ own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches

A38 Mortgage markets
A39 Mortgage debt outstanding
S e c u r it ie s H o l d i n g s a n d Tr a n s a c t i o n s
C o n s u m e r I n s t a l l m e n t C r e d it

A40 Total outstanding and net change
A41 Extensions and liquidations

A62 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
A62 Foreign official assets held at Federal Reserve
Banks
A63 Foreign transactions in securities

Flow of F unds

A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets

R e p o r t e d b y N o n b a n k in g B u s in e s s
E n t e r p r is e s i n th e U n it e d S t a t e s

A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners

D o m e s tic N o n fin a n cia l S ta tis tic s
In terest a n d Ex c h a n g e R ates

A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving

In tern a tio n a l S ta tis tic s
A52 U.S. international transactions—Summary
A53 U.S. foreign trade




A66 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates

A67 G u ide to T abu lar P r e s e n ta tio n ,

S ta tis tic a l R e le a s e s , a n d S p e c ia l T ables

S p ecia l T ables
A68 Assets and liabilities of U.S. branches and agen­
cies of foreign banks, June 30, 1980

Domestic Financial Statistics
1.10

A3

MONETARY AGGREGATES AND INTEREST RATES
1980

Q2

Ql

04

03

Sept.

Oct.

1981

Nov.

Dec.

Jan.

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1
Reserves o f depository institutions

1
2
3
4

Total .......................................................................
R equired..................................................................
Nonborrowed...........................................................
Monetary base2 .......................................................

5
6
7
8
9

Concepts o f money and liquid assets 3
M-1A ......................................................................
M -1B ........................................................................
M - 2 ..........................................................................
M - 3 ..........................................................................
L ...............................................................................

4.3
5.1
3.3
7.8

0.4
0.7
7.4
5.2

6.7
5.8
12.4
9.9

4.6
5.8
7.3

-4 .4

11.5
14.6
16.0
13.0
9.7

10.8
9.1
11.6
11.2

15.0
1.7
17.1
23.4
11.5
14.8

8.0
8.6

-

2.6

5.6
5i
7.8

16.5
15.2
7.2
11.2

8.1

21.3
22.9
0.7
9.7

5.2
6.8

5.4
10.1

1.6

35.9
27.0
13.2
15.0

0.0
13.4
4.9

1.0
-0.7
-

8.2

2.7
-37.4

12.3
15.8
8.7
9.6
12.5

9.1
11.8

12.5

23.2
- 8 .7
31.6
38.2
12.7

18.3
-40.0
39.6
39.5

10.2

11.7
10.0
11.3
14.1
11.7

14.1

13.3

16.6

12.6

16.2

15.93
13.00
14.79
15.49

10.8
6 .6 '

6.5
8.7
10.4
15.2
14.2'

-

11.1

- 9 .0
1.9'
7.3'
13.8

12.2

5.7
12.7

Time and savings deposits

Commercial banks
10 Total ....................................................................
11 Savings4 ................................................................
12 Small-denomination time5 ................................
13 Large-denomination time6 ................................
14 Thrift institutions7 ...................................................

8.2

10 .0

-19.8
28.9
11.1
2.6

-21.7
33.1
4.8

4.9
27.5
0.7
- 7 .2
9.9

15 Total loans and securities at commercial banks8

9.5

- .5

7.0

10.6

8.8
6.6

22.5

1 0 .8'

18.1
-5 4 .9
36.3
49.9
- 1 .3

Interest rates (levels, percent per annum)
Short-term rates

16
17
18
19

Federal funds9 ........................................
Discount window borrowing10 ............
Treasury bills (3-month market yield)1
Commercial paper (3-month)1112

15.05
12.51
13.35
14.54

12.69
12.45
9.62
11.18

9.83
10.35
9.15
9.65

15.85
11.78
13.61
15.26

12.81
11.00
11.62
12.52

15.85
11.47
13.73
15.18

18.90
12.87
15.49
18.07

19.08
13.00
15.02
16.58

11.78
8.23
13.22
14.32

10.58
7.95
11.77
12.70

10.95
8.58
12.20
13.12

12.23
9.59
13.49
14.62

11.75
9.11
13.18
14.10

12.44
9.56
13.85
14.70

12.49

12.29
9.66
14.12
14.95

Long-term rates

Bonds
20 U.S. government13 ............................
21
State and local government14 ..........
22
Aaa utility (new issue)15 ..................
23 Conventional mortgages1 6 ....................

1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding in preceding month or quarter. Growth rates for member bank reserves
are adjusted for discontinuities in series that result from changes in Regulations
D and M.
2. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all deposi­
tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institu­
tions.
3. M -l A: Averages of daily figures for (1) demand deposits at all commercial
banks other than those due to domestic banks, the U.S. government, and foreign
banks and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automated transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight E u­
rodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.




1 0 .1 1

14.51
15.05

12.98
10 .10

14.90
15.10

4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than

$ 10 0 ,000 .

6. Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Beginning Nov. 1977, unweighted average of offering rates quoted by at least
five dealers. Previously, most representative rate quoted by these dealers. Before
Nov. 1979, data shown are for 90- to 119-day maturity.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­
pilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept, of Housing and Urban Development.

A4
1.11

Domestic Financial Statistics □ March 1981
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Factors

1980
Dec.

Weekly averages of daily figures for week-ending

1981

1981

Jan.

Feb.

Jan. 14

Jan. 21

Jan. 28

Feb. 4

Feb. 11

Feb. 18

Feb. 25

Supplying R eserve F unds
1 Reserve Bank credit outstanding ................

143,250

142,819

140,373

143,691

143,002

140,192

139,632

139,545

141,281

140,696

2 U.S. government.securities1 ........................
3 Bought o u trig h t..........................................

119,074
118,548
526
8,821
8,743
78

119,362
118,795
567
8,812
8,739
73

116.509
116.509

120.543
120.543

116.988
116.988

116.737
116.737

115.857
115.857

117.348
117.348

115.262
115.262

8.739
8.739

8.739
8.739

119,952
119,753
199
8,754
8,739
15

8.739
8.739

8.739
8.739

8.739
8.739

8.739
8.739

8.739
8.739

9 L oans................................................................
10 Float ................................................................
11 Other Federal Reserve assets ......................

124
1,617
5,797
7,817

68
1,405
4,161
9,011

1,278
3,755
10,092

1,332
4,489
8,587

32
1,419
3,650
9,195

1,793
3,235
9,437

1,201
3,047
9,907

1,113
3,438
10,398

1,145
3,745
10,305

1,713
5,272
9,709

12 Gold stock ......................................................
13 Special drawing rights certificate account ..
14 Treasury currency outstanding ....................

11,161
3,313
13.422

11,160
2,518
13,465

11,159
2,518
13,465

11,161
2,518
13,431

11,160
2,518
13,438

11,159
2,518
13,446

11,159
2,518
13,638

11,159
2,518
13,460

11,159
2,518
13,465

11,159
2,518
13,474

135,676
446

133,443
440

131,846
452

134,479
440

132,811
437

131,370
443

131,139
445

131,721
445

132,431
450

131,989
450

2,722
353
403

3,172
380
541

3,297
319
401

3,085
530
395

3,109
304
672

3,498
275
468

3,288
402
501

3,926
283
431

2,832
346
366

3,376
282
373

4,881
26,664

4,872
27,114

4,609
26,591

4,971
26,900

4,973
27,809

4,753
26,508

4,600
26,571

4,532
25,344

4,635
27,364

4,610
26,765

5 Federal agency securities..............................
6
Bought o u trig h t..........................................

A bsorbing R eserve F unds
15 Currency in circulation..................................
16 Treasury cash holdings..................................
Deposits, other than member bank reserves,
with Federal Reserve Banks
17 T re a su ry ......................................................
18 Foreign ........................................................
19 O th e r............................................................
20 Other Federal Reserve liabilities and
capital ......................................................
21 Reserve accounts2 ..........................................

End-of-month figures
1980
Dec.

Wednesday figures

1981

1981

Jan.

Feb.

Jan. 14

Jan. 21

Jan. 28

Feb. 4

Feb. 11

Feb. 18

Feb. 25

Supplying R eserve F unds
22 Reserve bank credit outstanding..................

146,383

139,328

139,199

145,550

137,992

138,371

140,417

143,200

142,868

143,683

23 U.S. government securities1 ........................
24 Bought o u trig h t..........................................
25
Held under repurchase agreements ........
26 Federal agency securities..............................
27
Bought o u trig h t..........................................

121,328
119,299
2,029
9,264
8,739

117.169
117.169

117.621
117.621

121.571
121.571

113.812
113.812

115.138
115.138

117.179
117.179

117.146
117.146

117.913
117.913

116,622
116,622

8.739
8.739

8.737
8.737

8.739
8.739

8.739
8.739

8.739
8.739

8.739
8.739

8.739
8.739

8.739
8.739

8.737
8.737

28

Held under repurchase a g ree m en ts ........

525

29
30
31
32

A cceptances....................................................
L oans................................................................
Float ................................................................
Other Federal Reserve assets ......................

776
1,809
4,467
8,739

1,304
2,280
9,836

1,249
1,545
10,047

2,539
3,863
8,838

1,349
4,894
9,198

1,553
3,061
9,880

752
3,547
10,200

1,037
5,700
10,578

875
5,472
9,869

5,192
3,279
9,853

33 Gold stock ......................................................
34 Special drawing rights certificate account ..
35 Treasury currency outstanding ....................

11,160
2,518
13,838

11,159
2,518
13,886

11,156
2,518
13,477

11,160
2,518
13,437

11,159
2,518
13,444

11,159
2,518
13,450

11,159
2,518
13,457

11,159
2,518
13,464

11,159
2,518
13,471

11,158
2,518
13,477

137,244
437

131,113
451

131,375
460

134,042
440

132,325
440

131,372
440

131,424
441

132,461
445

132,846
450

132,006
450

3,062
411
617

3,038
573
515

2,284
422
337

2,814
301
370

3,013
248
536

2,974
302
439

4,069
278
432

3,468
267
424

3,729
241
364

3,433
232
397

4,671
27,456

4,579
26,621

4,737
26,734

4,891
29,807

4,701
23,850

4,649
25,323

4,431
26,476

4,708
28,568

4,486
27,900

4,449
29,869

A b s o r b in g R e s e r v e F u n d s

36 Currency in circulation..................................
37 Treasury cash holdings..................................
Deposits, other than member bank reserves,
with Federal Reserve Banks
38 T re a su ry ......................................................
39
Foreign ........................................................
40 O th e r............................................................
41 Other Federal Reserve liabilities and
capital ......................................................
42 Reserve accounts2 ..........................................

1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.




2. Includes reserve balances of all depository institutions,
N o t e . For amounts of currency and coin held as reserves, see table 1.12.

Member Banks
1.12

RESERVES AND BORROWINGS

A5

Depository Institutions

Millions of dollars
Monthly averages of daily figures
Reserve classification

1 Reserve balances with Reserve Banks1 ___
2 Total vault cash (estimated) ........................
3 Vault cash at institutions with required
reserve balances2 ................................
4
Vault cash equal to required reserves at
other institutions ................................
5 Surplus vault cash at other institutions3 .
6 Reserve balances + total vault cash4 ........
7 Reserve balances + total vault cash used
to satisfy reserve requirements4 5 ........
8 Required reserves (estimated) ....................
9 Excess reserve balances at Reserve Banks4 6
10 Total borrowings at Reserve B a n k s ........
11
Seasonal borrowings at Reserve Banks

1980

1979

Feb jp

Dec.

June

July

Aug.

Sept.

Oct.

Nov.

32,473

32,125

31,384

28,923

29,164

29,976

29,215
15,311

26,664
18,149

27,114
19,293

26,591
17,824

11,344

11,141

11,287

11,262

11,811

11,678

11,876

12,602

13,587

12,187

n.a.
n.a.
43,972

n.a.
n.a.
43,479

n.a.
n.a.
42,859

n.a.
n.a.
40,373

n.a.
n.a.
41,164

n.a.
n.a.
41,815

439
2,996
44,674

704
4,843
44.940

700
5,006
46,520

763
4,874
44,524

n.a.
43,578
394
1,473
82

n.a.
43,268

n.a.
42,575
284
395
7

n.a.
40,071
302
659

n.a.
40,908
256
1,311
26

n.a.
41,498
317
1,335
67

41,678
40,723
955
2,156
99

40,097
40,067
30
1,617
116

41,514
41,025
489
1,405
120

39,650
39,448

24.940
25,819
-8 7 9

26,267
26,605
-3 3 8

24,874
25,328
-4 5 4

13,719
13,523
196

13,935
13,690
245

13,305
13,235
70

260
230
30

253
228
25

388
366
22

494
495
-1

513
502

502
519
-1 7

211

380
12

10

Dec.

202

1,278
148

Large comm ercial banks

12 Reserves h e ld ...................................................
13 R eq u ired .......................................................
14 E x c ess...........................................................
Small comm ercial banks

15 Reserves h e ld ...................................................
16 R equired.......................................................
17 E x c ess...........................................................
U.S. agencies and branches

18 Reserves h e ld ...................................................
19 R eq u ired .......................................................
20 E x c ess...........................................................
A ll other institutions

21 Reserves h e ld ...................................................
22 R equired.......................................................
23 E x c ess...........................................................

11

Weekly averages of daily figures for week ending
Dec. 24
24 Reserve balances with Reserve Banks1 . . . .
25 Total vault cash (estimated) ........................
26 Vault cash at institutions with required
reserve balances2 ................................
27
Vault cash equal to required reserves at
other in stitu tio n s................................
28
Surplus vault cash at other institutions3 .
29 Reserve balances + total vault cash4 ........
30 Reserve balances + total vault cash used
to satisfy reserve requirements4 5 ........
31 Required reserves (estimated) ....................
32 Excess reserve balances at Reserve Banks4 6
33 Total borrowings at Reserve B a n k s ........
34
Seasonal borrowings at Reserve Banks

Dec. 31

Jan. I p

Jan. 14p

Jan. 21p

Jan. 28p

Feb. 4p

Feb. 11p

Feb. 18P

Feb. 25 p

27,659
17,663

27,277
18,482

27,718
17,841

26,900
20,390

27,809
20,244

26,508
18,827

26,571
18,985

25,344
18,742

27,364
17,421

26,765
16,820

12,345

12,954

12,498

14,268

14,066

13,736

13,067

12,942

11,886

11,464

700
4,618
45,456

700
4,828
45,882

700
4,643
45,681

700
5,422
47,403

700
5,478
48,165

700
4,391
45,442

700
5,218
45,667

700
5,100
44,196

700
4,835
44,893

700
4,656
43,693

40,838
40,029
809
1,649
119

41,054
40,558
496
1,627
116

41,038
40,374
664
1,117
112

41,981
41,240
741
1,332
105

42,687
42,180
507
1,419
123

41,051
40,651
400
1,793
137

40,449
40,221
228
1,201
125

39,096
38,926
170
1,113
131

40,058
39,760
298
1,145
154

39,037
39,202
-1 6 5
1,713
160

25,757
25,773
-1 6

25,700
26,163
-4 6 3

25,897
26,050
-1 5 3

26,698
26,797
-9 9

27,380
27,629
-2 4 9

25,881
26,222
-3 4 1

25,526
25,955
-4 2 9

24,830
25,031
-201

25,241
25,573
-3 3 2

23,669
25,041
-1,3 7 2

13,828
13,551
277

13,955
13,643
312

13,832
13,598
234

13,889
13,693
196

14,185
13,825
360

13,929
13,698
231

13,674
13,554
120

13,159
13,126
33

13,336
13,184
152

13,180
13,226
-4 6

261
221
40

262
234
28

271
242
29

264
221
43

252
223
29

244
231
13

226
226
0

261
237
24

465
461
4

482
440
42

463
484
-2 1

527
518
9

565
484
81

529
529
0

496
503
-7

473
500
-2 7

495
486
9

479
532
-5 3

510
542
-3 2

485
495
-1 0

Large commercial banks

35 Reserves h e ld ...................................................
36 R eq u ired .......................................................
37 E x c ess...........................................................
Small comm ercial banks

38 Reserves h e ld ...................................................
39 R equired.......................................................
40 E x c e ss...........................................................
U.S. agencies and branches

41 Reserves h e ld ...................................................
42
R equired.......................................................
43
E x c e ss...........................................................
A ll other institutions

44 Reserves h e ld .............................................
45
R eq u ired .......................................................
46 E x c e ss...........................................................

1. Includes all reserve balances of depository institutions.
2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a
graduated basis over a 24-month period when a nonmemBer bank merged into an




existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves. (This measure of excess reserves is
comparable to the old excess reserve concept published historically.)

A6

Domestic Financial Statistics □ March 1981

1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks'
Averages of daily figures, in millions of dollars
1980 and 1981, week ending Wednesday
By maturity and source
Dec. 31

Jan. 7

Jan. 14

Jan. 21

Jan. 28

Feb. 4

Feb. 11

Feb. 18

Feb. 25

One day and continuing contract

1 Commercial banks in United States ................................
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
3 Nonbank securities dealers .................................................
4 A llo th e r.................................................................................

45,865

50,819

52,180

48,688

44,416'

45,728

48,974

48,056

47,407

13,846
2,242
14,598

14,516
2,784
16,120

15,309
2,937
17,728

14,602
2,899
17,817

14,227
2,768
17,325'

13,884
2,272
17,846

15,093
2,234
17,143

15,244
2,574
17,153

14,672
2,251
19,187

A ll other maturities

5 Commercial banks in United States ................................
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
7 Nonbank securities dealers .................................................
8 A llo th e r.................................................................................

5,266

4,606

4,181

3,993

4,196

4,095

4,582

4,935

3,958

7,738
4,491
13,847

7,112
4,150
12,062

7,138
4,085
11,356

7,058
4,652
11,865'

7,302'
4,918'
12,377

7,553
5,014
11,740

7,539
4,868
11,924

7,530
4,751
11,564

7,339
4,390
11,011

Memo : Federal funds and resale agreement loans in ma­
turities of one day or continuing contract
9 Commercial banks in United States ................................
10 Nonbank securities dealers ................................................

15,532
2,772

18,124
3,614

17,016
3,724'

13,873'
3,032

11,356
2,547

13,967
2,869

14,038
2,686

17,221
2,918

14,409
3,066

1. Banks with assets of $1 billion or more as of December 31, 1977.




Policy Instruments

Al

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit

Short-term
adjustment credit 1
Federal Reserve
Bank

Emergency credit
to all others
under section 133

Special circumstances2

Seasonal credit
Rate on
2/28/81

Effective
date

Previous
rate

Rate on
2/28/81

Effective
date

Previous
rate

Rate on
2/28/81

Effective
date

Previous
rate

Rate on
2/28/81

Effective
date

Previous
rate

B o s to n ....................
New Y o r k ..............
Philadelphia ..........
Cleveland ..............
R ic h m o n d..............
Atlanta ..................

13
13
13
13
13
13

12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80

12
12
12
12
12
12

13
13
13
13
13
13

12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80

12
12
12
12
12
12

14
14
14
14
14
14

12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80

13
13
13
13
13
13

16
16
16
16
16
16

12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80

15
15
15
15
15
15

C h ic ag o ..................
St. Louis ................
Minneapolis ..........
Kansas City ..........
Dallas ....................
San F rancisco ........

13
13
13
13
13
13

12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80

12
12
12
12
12
12

13
13
13
13
13
13

12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80

12
12
12
12
12
12

14
14
14
14
14
14

12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80

13
13
13
13
13
13

16
16
16
16
16
16

12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80

15
15
15
15
15
15

Range of rates in recent years4-5

Effective date

In effect Dec. 31, 1970 ................
1971— Jan. 8 ............................
1 5 ............................
1 9 ............................
2 2 ............................
2 9 ............................
Feb. 13 ............................
1 9 ............................
July 1 6 ............................
2 3 ............................
Nov. 1 1 ............................
1 9 ............................
Dec. 1 3 ............................
1 7 ............................
2 4 ............................
1973— Jan. 1 5 ............................
Feb. 26 .............................
Mar. 2 ............................
A m . 2 3 .............................
May 4 ............................
1 1 ............................
1 8 ............................
June 11 ............................
1 5 .............................
July 2 . . . . ....................
Aug. 1 4 .............................
2 3 ............................

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

5Vi
514-5 Vi

5Yi

5V4

51/4
51/4
5
5
5

5-51/4
5-51/4
5
43A-5
43/4

43/4-5
5
43/4-5

43/4

4]/2-43/4
4 l/ 2-43/4
4 Yi

5
5-5 Vi
5Vi
5Vi-53/4
53/4
53/4-6
6
6 -6 Vi
6 Vi
7
1 -1 Yi
lY i

5V4

43/4

5
5
5
43/ 4
43/4
4Yi
4 Vi

5
5Yi

5 Vi
5Vi
53/4
6
6
6Vi
6Vi
7
lY i
lY i

1974— Apr. 2 5 ..................
3 0 ..................
Dec. 9 ..................
1 6 ..................
1975— Jan.

6 ..................
1 0 ..................

2 4 ..................
Feb. 5 ..................
7 ..................
Mar. 1 0 ..................
1 4 ..................
May 1 6 ..................
1976— Jan.

1 9 ..................
2 3 ..................
Nov. 2 2 ..................
2 6 ..................

7 Vi-8
8

73/4-8
73/4
7V4

71/4
71/4
63/4^7V4
63/4
6Y4-63/4

61/4
6-61/4
5^2-6
5Vi
5V4-5Vi

51/4

1977— Aug. 3 0 ..................
3 1 ..................
Sept. 2 ..................
Oct. 2 6 ..................

5W 5 3/4
5V*-53/4
53/4
6

1978— Jan.

6 -6 Vi
6 Vi
6 Vi-7

9 ..................
2 0 ..................
May 1 1 ..................
1 2 ..................
July 3 ..................

1. Effective Dec. 5, 1980, a 3 percent surcharge was applied to short-term ad­
justment credit borrowings by institutions with deposits of $500 million or more
who borrowed in successive weeks or in more than 4 weeks in a calendar quarter.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution as described in section 201.3(b) (2) of Reg­
ulation A.
3. Applicable to emergency advances to individuals, partnerships, and corpo­
rations as described in section 201.3(c) of Regulation A.




Range (or
level)—
All F.R.
Banks

Effective date

7
7-71/4

F.R.
Bank
of
N.Y.
8
8
73/4
73/4

1 Y4
1Y\
IY a

63/4
63/4
6Y4
6Y4
6

5Vi
5Vi
51/4
51/4
5V4

53/4
53/4
6
6Y2
6Y1
1
1
1Y4

Effective date

1978— July
Aug.
Sept.
Oct.

1 0 ..................
2 1 ..................
2 2 ..................
1 6 ..................
2 0 ..................
Nov. 1 ..................
3 ..................

1979— July 2 0 ..................
Aug. 1 7 ..................
2 0 ..................
Sept. 1 9 ..................
2 1 ..................
Oct. 8 ..................
1 0 ..................
1980— Feb. 1 5 ..................
1 9 ..................
May 2 9 ..................
3 0 ..................
June 13 ..................
1 6 ..................
July 2 8 ..................
2 9 ..................
Sept. 2 6 ..................
Nov. 1 7 ..................
Dec. 5 ..................
8 ..................
In effect Feb. 28, 1981

Range (or
level)—
All F.R.
Banks
71/4

F.R.
Bank
of
N.Y.
1Y4

73/4

73/4

8
8 -8 Vi
8 Vi
%Yb-9Yi

8
8 Vi
8 Vi

9Vi

9Vi
9Vi

10

10

lO-lOVi
lOVi
10 V i-ll

lOVi
lOVi

11
11-12
12

11
11
12
12

12-13
13
12-13

13
13
13

12
11-12
11
10-11
10
11
12

12
11
11
10
10
11
12

12-13
13
13

13
13
13

4. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and M onetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 1972-1976,
1973-1977, and 1974-1978.
5. Twice in 1980, the Federal Reserve applied a surcharge to short-term ad­
justment credit borrowings by institutions with deposits of $500 million or more
who had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. On Nov. 17,1980, a 2 percent surcharge was adopted which was subsequently
raised to 3 percent on Dec. 5, 1980.

A8
1.15

Domestic Financial Statistics □ March 1981
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS^
Percent of deposits

Type of deposit, and deposit interval
in millions of dollars

Member bank requirements
before implementation of the
Monetary Control Act

Type of deposit, and
deposit interval

Depository institution requirements
after implementation of the
Monetary Control Act5

Effective date
Net dem and 2
0 - 2 .................................

7

2 - 1 0 ................................................

9Vi

100-400 ..........................
Over 400 ......................

l l 3/4
123/4
161/4

10-100 ................

Effective date
Net transaction accounts 6

12/30/76
12/30/76
12/30/76
12/30/76
12/30/76

Time and savings2'3

Savings ........................

$0-$25 million ....................
Over $25 million ................

3
12

11/13/80
11/13/80

Nonpersonal time deposits 7

By original maturity
Less than 4 y e a rs ............
4 years or more ..............

11/13/80
11/13/80

3/16/67
Eurocurrency liabilities

Time4
0-5, by maturity
30-179 days ........
180 days to 4 years
4 years or more ..
Over 5, by maturity
30-179 days ........
180 days to 4 years
4 years or more ..

All ty p e s ..........................
3
2Vi

1
6

2 Vi
1

12/12/74
1/8/76
10/30/75

1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975 and for prior changes, see Board’s Annual Report for
1976, table 13. Under provisions of the Monetary Control Act, depository insti­
tutions include commercial banks, mutual savings banks, savings and loan asso­
ciations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits of each bank. Demand deposits subject to reserve
requirements are gross demand deposits minus cash items in process of collection
and demand balances due from domestic banks.
(b) The Federal Reserve Act as amended through 1978 specified different ranges
of requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9,1972, by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence of the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U.S residents were reduced to zero from 4 percent and
1 percent, respectively. The Regulation D reserve requirement on borrowings from
unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were suoject to the same reserve require­
ments as deposits of member banks.
3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements
as savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective Nov. 2,1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.




11/13/80

3/16/67
1/8/76
10/30/75

(b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning April 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was reduced to zero beginning July 24, 1980. Managed liabilities are defined as
large time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, feaeral funds borrowings from non­
member institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
statement weeks ending Sept. 26,1979. For the computation period beginning Mar.
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s
U.S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13-26, 1979) and the week
ending Mar. 12,1980, whichever was greater. For the computation period beginning
May 29,1980, the base was increased by IVi percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions, there is a phase-in
period ending Sept. 3, 1987. For existing member banks the phase-in period is
about three years, depending on whether their new reserve requirements are greater
or less than the old requirements. For existing agencies and branches of Foreign
banks, the phase-in ends Aug. 12, 1982. All new institutions will have a two-year
phase-in beginning with the date that they open for business.
6. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, telephone and preauthorized transfers (in excess of three per
month), for the purpose of making payments to third persons or others.
7. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. Also included are certain trans­
ferable time deposits held by natural persons, and certain O bligations issued to
depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
N o t e . Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation of the Monetary Control Act,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.

Policy Instruments
1.16

A9

MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Commercial banks

Type and maturity of deposit

In effect Feb. 28, 1981

Previous maximum

Effective
date
1 Savings .................................................................................
2 Negotiable order of withdrawal accounts 2 ..................
Time accounts 3
Fixed ceiling rates by maturity 4
3
14-89 days 5 .....................................................................
4 90 days to 1 y e a r .............................................................
5
1 to 2 years ' ...................................................................
6 2 to 2 Yi years 7 ...............................................................
7 2Yi to 4 years 7 ...............................................................
8 4 to 6 years 8 ...................................................................
9 6 to 8 years 8 ...................................................................
10 8 years or more 8 ...........................................................
11 Issued to governmental units (all maturities) 10 . . . .
12 Individual retirement accounts and Keogh (H.R. 10)
plans (3 years or more) 1011 ................................

5V4
SVa
5Ya
5 3/4

IVa

lYi

7/1/79
12/31/80

7/1/73
1/1/74

8/1/79
1/1/80

73/4

7/1/73
11/1/73
12/23/74
6/1/78
6/1/78

In effect Feb. 28, 1981

Effective
date

5 3/4
53/4

7/1/73
7/1/73
1/21/70
1/21/70
1/21/70

<9l7V4

11/1/73

5
5Yi
5Yi

7/1/73

6Yi

Savings and loan associations and
mutual savings banks

6/1/78

Effective
date

Effective
date
5 Yi
5Va

(6)

6

7/1/79
12/31/80

1/1/80

6Yz

0)

63/4

lYi

0

73/4

' 12/23/74

11/1/73
12/23/74
6/1/78
6/1/78

73/4

7/6/77

(6)I

Previous maximum

V /A

5Ya
5

(6)

53/4
53/4

6
6
(9)

11/1/73

7 3/4

’ 12/23/74

6/1/78

73/4

7/6/77

( 13)

(13)
f15)

(13 )

6-month money market time deposits *2 ....................
2 Yi years or more ...........................................................

1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex­
tended to similar institutions throughout New England on Feb. 27, 1976, and in
New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. A uthor­
ization to issue NOW accounts was extended to similar institutions nationwide
effective Dec. 31, 1980.
3. For exceptions with respect to certain foreign time deposits see the F e d e r a l
R e s e r v e B u l l e t in for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­
ruary 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
period for time deposits was decreased from 30 days to 14 days for mutual savings
banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 days to 14 days for commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retire­
ment Account (IRA) or a Keogh (H .R. 10) plan established pursuant to the Internal
Revenue Code. The $1,000 minimum requirement was removed for such accounts
in December 1975 and November 1976 respectively.
9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however, the
amount of such certificates that an institution could issue was limited to 5 percent
of its total time and savings deposits. Sales in excess of that amount, as well as
certificates of less than $1,000, were limited to the 6 Yi percent ceiling on time
deposits maturing in 2 Yi years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denom­
ination requirements.
11. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IRA and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2Vi-year or more variable ceiling certif­
icates or in 26-week money market certificates regardless of the level of the Treasury
bill rate.
12. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
13. Commercial banks, savings and loan associations, and mutual savings banks
were authorized to offer money market time deposits effective June 1, 1978. The
ceiling rate for commercial banks on money market time deposits entered into
before June 5,1980, is the discount rate (auction average) on most recently issued
six-month U.S. Treasury bills. Until Mar. 15,1979, the ceiling rate for savings and
loan associations and mutual savings banks was V a percentage point higher than
the rate for commercial banks. Beginning March 15,1979, the V4-percentage-point
interest differential is removed when the six-month Treasury bill rate is 9 percent
or more. The full differential is in effect when the six-month bill rate is 83/4 percent




0
1/21/70
1/21/70
1/21/70

lY i

(6)

Special variable ceiling rates by maturity

13
14

0)
1/1/74

n3\

or less. Thrift institutions may pay a maximum 9 percent when the six-month bill
rate is between 83/4 and 9 percent. Also effective March 15, 1979, interest com­
pounding was prohibited on six-month money market time deposits at all offering
institutions. The maximum allowable rates in February for commercial banks and
thrift institutions were as follows: Feb. 5, 13.985; Feb. 12, 14.680; Feb. 19,15.010;
Feb. 26, 13.861. Effective for all six-month money market certificates issued be­
ginning June 5, 1980, the interest rate ceilings will be determined by the discount
rate (auction average) of most recently issued six-month U.S. Treasury bills as
follows:
Bill rate

Com m ercial bank ceiling

Thrift ceiling

8.75 and above
bill rate + Ya percent
bill rate -I- Y a percent
8.50 to 8.75
bill rate + Ya percent
9.00
7.50 to 8.50
bill rate -I- Ya percent
bill rate + Yi percent
7.25 to 7.50
7.75
bill rate + Yi percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues.
14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2 Yi years
or more. The maximum rate for commercial banks is 3/4 percentage point below
the yield on 2V^-year U.S. Treasury securities; the ceiling rate for thrift institutions
is Ya percentage point higher than that for commercial banks. Effective Mar. 1,
1980, a temporary ceiling of l l 3/4 percent was placed on these accounts at com­
mercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable ceiling nonnegotiable time
deposits with maturities of 2 Yi years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:
Treasury yie ld

Com mercial bank ceiling

Thrift ceiling

12.00 and ab o v e

11.75

12.00

9.50 to 12.00
Treasury y ie ld - Y a percent
Treasury yield
Below 9.50
9.25
9.50
Interest may be compounded on these time deposits. The ceiling rates of interest
at which these accounts may be offered vary biweekly. The maximum allowable
rates in February for commercial banks were as follows: Feb. 5, 11.75; Feb. 19,
11.75. The maximum allowable rates in February for thrift institutions were as
follows: Feb. 5, 12.00; Feb. 19, 12.00.
15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were authorized to offer variable ceiling
accounts with no required minimum denomination and with maturities of 4 years
or more. The maximum rate for commercial banks was IYa percentage points below
the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions
was Y a percentage point higher than that for commercial banks.
N o t e . Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526,
respectively. Title II of the Depository Institutions Deregulation and Monetary
Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to
establish maximum rates of interest payable on deposits to the Depository Insti­
tutions Deregulation Committee. The maximum rates on time deposits in denom­
inations of $100,000 or more with maturities of 30-89 days were suspended in June
1970; such deposits maturing in 90 days or more were suspended in May 1973. For
information regarding previous interest rate ceilings on all types of accounts, see
earlier issues of the F e d e r a l R eserv e B u lle tin , the Federal H om e Loan Bank
B oard Journal, and the A nnual R eport o f the Federal D eposit Insurance C orpo­
ration.

A10
1.17

Domestic Financial Statistics □ March 1981
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1980
Type of transaction

1978

1979

1981

1980
July

Aug.

Sept.

Nov.

Oct.

Jan.

D ec.

U .S. G overnment S ecurities
Outright transactions (excluding matched salepurchase transactions)
1
2
3
4

Treasury bills
Gross p u rch ases..........................................................
Gross sales ...................................................................
Exchange ......................................................................
Redemptions ...............................................................

16,628
13,725
0
2,033

15,998
6,855
0
2,900

7,668
7,331
0
3,389

0
2,264
0
950

0
47
0
0

200
237
0
0

991
531
0
700

0
600
0
500

1,331
0
0
49

1,100
3,865
0
1,000

5
6
7
8
9

Others within 1 year 1
Gross purchases..........................................................
1,184
Gross sales ...................................................................
0
Maturity s h i f t ..........................................................
-5 ,1 7 0
Exchange ......................................................................
Redemptions ............................................................... }
0

3,203
0
17,339
- 1 1 ,3 0 8
2,600

912
0
12,427
-1 8 ,2 5 1
0

0
0
311
-788
0

137
0
2,423
-3 ,1 3 4
0

0
0
589
- 1 ,4 5 9
0

0
0
596
-4 2 0
0

0
0
2,368
-8 7 9
0

100
0
754
-967
0

0
0
462
0
0

10
11
12
13

1 to 5 years
Gross p u rchases..........................................................
Gross sales ...................................................................
Maturity s h i f t ...............................................................
}
Exchange ......................................................................

2,148
0
-1 2 ,6 9 3
7,508

2,138
0
-8 ,9 0 9
13,412

0
0
-3 1 1
788

541
0
-7 2 0
1,750

0
0
-5 8 9
1,459

0
0
-5 9 6
420

0
0
-2 ,3 6 8
500

0
0
-7 5 4
967

0
0
-4 6 2
0

14
15
16
17

5 to 10 years
Gross purchases...........................................................
Gross sales ...................................................................
Maturity s h i f t ...............................................................
}
Exchange ......................................................................

523
0
- 4 ,6 4 6
2,181

703
0
-3 ,0 9 2
2,970

0
0
0
0

236
0
-1 ,7 0 3
1,000

0
0
0
0

0
0
0
0

0
0
0
220

0
0
0
0

0
0
0
0

18
19
20
21

Over 10 years
Gross p u rch ases..........................................................
Gross sales ...................................................................
Maturity s h i f t ...............................................................
Exchange .....................................................................

454
0
0
1,619

811
0
-4 2 6
1,869

0
0
0
0

320
0
0
384

0
0
0
0

0
0
0
0

0
0
0
159

0
0
0
0

0
0
0
0

22
23
24

A ll maturities 1
Gross p u rch ases..........................................................
Gross sales ...................................................................
Redemptions ...............................................................

24,591
13,725
2,033

22,325
6,855
5,500

12,232
7,331
3,389

0
2,264
950

1,234
47
0

200
237
0

991
531
700

0
600
500

1,431
0
49

1,100
3,865
1,000

25
26

Matched transactions
Gross sales ...................................................................
Gross p u rchases...........................................................

511,126
510,854

627,350
624,192

674,000
675,496

48,370
46,023

72,315
71,645

55,766
56,207

55,787
56,462

40,944
41,129

79,754
78,734

61,427
63,062

27
28

Repurchase agreements
Gross p u rch ases..........................................................
Gross sales ...................................................................

151,618
152,436

107,051
106,968

113,902
113,040

10,719
10,110

2,783
3,016

3,203
2,743

20,145
19,808

24,169
23,924

11,534
11,381

6,108
8,137

29 Net change in U .S. government securities ...........

7,743

6,896

3,869

- 4 ,9 5 2

284

863

771

-670

516

- 4 ,1 5 9

4,188
0
-1 7 8

1,526
0
2,803

1,063
0
}

2,545

F ederal A gency O bligations
30
31
32

O utright transactions
Gross p u rch ases..........................................................
Gross sales ...................................................................
Redemptions ...............................................................

301
173
235

853
399
134

668
0
145

0
0
2

0
0

0
0
91

0
0
21

0
0
0

0
0
22

0
0
0

33
34

Repurchase agreements
Gross p u rchases...........................................................
Gross sales ...................................................................

40,567
40,885

37,321
36,960

28,895
28,863

1,737
1,242

1,082
1,132

977
1,188

5,922
5,734

4,825
4,880

1,889
1,767

652
1,177

35 Net change in federal agency obligations ..............

-4 2 6

681

555

492

-5 0

-3 0 2

167

-5 5

99

-5 2 5

36 Outright transactions, net ...........................................
37 Repurchase agreements, n e t ......................................

0
-3 6 6

0
116

0
73

0
-6 4

0
-3 3

0
222

0
67

0
-4 3

0
253

0
-7 7 6

38 Net change in bankers acceptances .........................

-3 6 6

116

73

-6 4

-3 3

222

67

-4 3

253

-7 7 6

6,951

7,693

4,497

-4,523

202

784

1,005

-7 6 8

868

-5 ,4 6 0

B ankers A cceptances

39 Total net change in System Open Market

Account...............................................................

1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): March 1979, 2,600.




N o t e . Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.

Reserve Banks
1.18

FEDERAL RESERVE BANKS

A ll

Condition and Federal Reserve Note Statements

Millions of dollars
Wednesday

Account

End of month

1980

1981
Jan. 28

Feb. 4

Feb. 11

Feb. 18

1981

Feb. 25

Consolidated condition statement
A ssets

11,159
2,518
447

11,159
2,518
465

11,159
2.518
477

11,159
2,518
479

11,158
2,518
486

11,161
2,518
397

11,159
2,518
468

11,156
2,518
495

1,553
0

752
0

1.037
0

875
0

5,192
0

1,809
0

1,304
0

1,249
0

1 Gold certificate ac c o u n t....................................................
2 Special drawing rights certificate a c c o u n t......................
3 C o in ......................................................................................
Loans
4 To depository institutions ............................................
5 O th e r................................................................................
Acceptances
6 Held under repurchase agreements ............................
Federal agency obligations
7 Bought o u trig h t...............................................................
8 Held under repurchase agreements ............................
U.S. government securities
Bought outright
9
B ills ...............................................................................
10
N o te s............................................................................
11
Bonds ...........................................................................
12
Total1 ...........................................................................
13 Held under repurchase agreements ............................
14 Total U.S. government securities....................................

0

0

0

0

0

776

0

0

8,739
0

8.739
0

8,739
0

8,739
0

8,737
0

8,739
525

8,739
0

8,737
0

39,527
58,718
16,893
115.138
0
115.138

41,568
58,718
16,893
117.179
0
117.179

41,535
58,718
16,893
117.146
0
117.146

42,325
58,370
17,218
117,913
0
117.193

41,034
58.370
17,218
116,622
0
116,622

43,688
58,718
16,893
119,299
2,029
121,328

41,558
58,718
16,893
117.169
0
117.169

42,033
58,370
17,218
117.621
0
117.621

15 Total loans and securities..................................................

125,430

126,670

126,922

127,527

130,551

133,177

127,212

127,607

16 Cash items in process of collection ................................
17 Bank prem ises.....................................................................
Other assets
18 Denominated in foreign currencies2 ..........................
19 All o th e r ...........................................................................

8,654
458

9,570
458

11,325
458

14,004
459

9,220
461

12,554
457

7,865
458

7,473
461

5,974
3,448

6,388
3,354

6,713
3,407

6.985
2.425

7,088
2,304

5,104
3,177

5,993
3,385

7,086
2,500

20 Total assets...........................................................................

158,088

160,582

162,979

165,556

163,786

168,545

159,058

159,296

21 Federal Reserve notes .......................................................
Deposits
22
Depository institutions...................................................
23
U.S. Treasury—General a c c o u n t................................
24 Foreign—Official accounts ...........................................
25
O th e r.................................................................................

118,808

118,873

119.919

120.304

119,465

124,241

118,147

118,854

25,323
2,974
302
439

26,476
4,069
278
432

28.568
3.468
267
424

27,900
3.729
241
364

29,869
3,433
232
397

27,456
3,062
411
617

26,621
3,034
573
515

26,734
2,284
422
337

26 Total deposits.......................................................................

29,038

31,255

32,727

32,234

33,931

31,546

30,747

29,777

27 Deferred availability cash items ......................................
28 Other liabilities and accrued dividends3 ........................

5,593
2,017

6,023
1,878

5.625
2.038

8,532
1,811

5,941
1,755

8,087
2,265

5,585
1,957

5.928
1,958

29 Total liabilities.....................................................................

155,456

158,029

160,309

162,881

161,092

166,139

156,436

156,517

30 Capital paid i n .....................................................................
31 Surplus .................................................................................
32 Other capital accounts ......................................................

1,208
1,203
221

1,209
1,203
141

1.210
1,203
257

1,212
1.203
260

1,221
1,203
270

1.203
1.203
0

1,208
1,203
211

1,222
1,203
354

33 Total liabilities and capital accounts ..............................

158,088

160,582

162,979

165,556

163,786

168,545

159,058

159,296

34 M e m o : M arketab le U.S. g ov er n m en t secu rities h eld in
custody for foreign and international account

93,027

93,081

93,445

94,084

93,977

91,795

92,756

94,658

L ia b il it ie s

C a p it a l A c c o u n t s

Federal Reserve note statement
140,843
22,035
118,808

140,767
21,894
118,873

141,028
21,109
119.919

141,128
20,824
120,304

141,361
21,896
119,465

140,184
15,943
124,241

140,717
22,570
118,147

141,297
22,443
118,854

Gold certificate a c c o u n t..........................................
Special drawing rights certificate a c c o u n t............
Other eligible assets ................................................
U.S. government and agency securities ..............

11,159
2,518
0
105,131

11,159
2,518
0
105,196

11.159
2.518
0
106,242

11,159
2,518
0
106.627

11,158
2,518
0
105,789

11,161
2,518
0
110,562

11,159
2,518
0
104,470

11,156
2,518
0
105,180

42 Total collateral...............................................................

118,808

118,873

119,919

120,304

119,465

124,241

118,147

118,854

35 Federal Reserve notes outstanding (issued to bank)
36
Less-held by bank4 ..............................................
37
Federal Reserve notes, net ................................
Collateral fo r Federal Reserve notes

38
39
40
41

1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies and foreign currencies warehoused for the U.S. Treas­
ury. Assets shown in this line are revalued monthly at market exchange rates.




3. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.

A12

Domestic Financial Statistics □ March 1981

1.19 FEDERAL RESERVE BANKS

Maturity Distribution of Loan and Security Holdings

Millions of dollars
Wednesday
Type and maturity groupings

End of month

1981
Jan. 28

Feb. 4

1980
Feb. 18

Feb. 11

Feb. 25

1981

Dec. 31

Jan. 31

Feb. 28

1 Loans—T o ta l.........................................................................
2 Within 15 d a y s ...................................................................
3
16 days to 90 d a y s .............................................................
4 91 days to 1 y e a r ...............................................................

1,553
1,505
48
0

752
685
67
0

1,037
964
73
0

875
839
36
0

5,192
5,163
29
0

1,809
1,757
52
0

1,304
1,255
49
0

1,249
1,199
50
0

5 Acceptances—Total .............................................................
6
Within 15 d a y s ...................................................................
7
16 days to 90 d a y s .............................................................
8 91 days to 1 y e a r ...............................................................

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

776
776
0
0

0
0
0
0

0
0
0
0

9 U.S. government securities—Total ..................................
10 Within 15 days1 .................................................................
11
16 days to 90 d a y s .............................................................
12 91 days to 1 y e a r ...............................................................
13 Over 1 year to 5 years .....................................................
14 Over 5 years to 10 years .................................................
15 Over 10 y e a rs .....................................................................

115,138
4,385
19,948
27,943
34,505
13,355
15,002

117,179
4,954
21,623
27,741
34,504
13,355
15,002

117,146
6,536
20,035
27,715
34,504
13,354
15,002

117,913
6,217
20,889
26,916
34,809
13,755
15,327

116,622
5,096
21,510
26,125
34,809
13,755
15,327

121,328
4,780
23.499
30.187
34,505
13,355
15.002

117,169
2,125
24,904
27,279
34,505
13,354
15,002

117,621
3,101
23,245
27,385
34,809
13,754
15,327

16 Federal agency obligations—T o t a l ....................................
17 Within 15 days' .................................................................
18
16 days to 90 d a y s .............................................................
19 91 days to 1 y e a r ...............................................................
20
Over 1 year to 5 years .....................................................
21
Over 5 years to 10 years .................................................
22
Over 10 y e a rs .....................................................................

8,739
73
550
1,750
4,597
1,085
684

8,739
0
619
1,753
4,597
1,085
685

8,739
183
436
1,830
4,553
1,052
685

8,739
257
362
1,830
4,553
1,052
685

8,737
128
439
1,834
4,621
1,030
685

9,264
705
426
1,519
4.837
1,092
685

8,739
73
550
1,749
4,597
1,085
685

8,737
128
439
1,834
4,621
1,030
685

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

1.20

BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1980
Bank group, or type of customer

1979'

1978

1977

A ug/

S ep t/

Oct.'

N ov/

Dec.

67,621.4
26,821.8
40,799.6

69.950.2
27.352.2
42,598.0

173.4
95.6
573.7
842.8

218.3
119.2
704.2
1,041.6

211.6
842.2
141.8

222.7
865.8
150.8

8.4
8.5
3.2
4.0

10.4
11.3
4.1
5.1

Debits to demand deposits1 (seasonally adjusted)
1 All commercial b a n k s ...........................................................
2 Major New York City banks .............................................
3 Other b a n k s ...........................................................................

34,322.8
13,860.6
20,462.2

40,297.8
15,008.7
25,289.1

49,775.0
18.512.7
31,262.3

65,498.2
26,708.4
38,789.8

65.258.6
26.104.7
39,154.0

65.346.7
26.035.0
39.311.7

Debits to sa^/ings deposits 2 (not seasonsilly adjusted)
4
5
6
7

ATS/NOW3
Business4 ..
Others5 ___
All accounts

5.5
21.7
152.3
179.5

17.1
56.7
359.7
432.9

83.3
77.3
515.2
675.8

145.5
87.4
560.3
793.2

176.3
95.8
649.0
921.1

185.5
100.1

688.2

973.8

Demand deposit turnover1 (seasonally adjusted)
8 All commercial b a n k s ...........................................................
9 Major New York City banks ............................................
10 Other b a n k s ...........................................................................

129.2
503.0
85.9

139.4
541.9
96.8

163.5
646.2
113.3

206.3
859.7
135.4

203.2
818.6
135.3

202.1
799.5
135.2

Savings deposit turnover2 (not seasonally adjusted)
11
12
13
14

ATS/NOW3 ...........................................................................
Business4 ...............................................................................
Others5 ...................................................................................
All a c co u n ts...........................................................................

6.5
4.1
1.5
1.7

1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings and loan associations, mutual savings
banks, credit unions, the Export-Import Bank, and federally sponsored lending
agencies).
5. Savings accounts other than NOW; business; and, from December 1978, ATS.




7.0
5.1
1.7
1.9

7.8
7.2
2.7
3.1

8.3
8.0
3.1
3.8

9.5
8.6
3.6
4.4

9.7
8.8
3.8
4.6

N o t e . Historical data for the period 1970 through June 1977 have been estimated;
these estimates are based in part on the debits series for 233 SMSAs, which were
available through June 1977. Back data are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve
System. Washington, D.C. 20551. Debits and turnover data for savings deposits
are not available before July 1977.

Monetary Aggregates
1.21

A 13

MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures

Item

1977
Dec.

1978
Dec.

1979
Dec.

1980

1980
Dec.
Aug.

Sept.

Seasonally adjusted
M easures1

1
2
3
4

M -1A ..................................................
M -1 B ...................................................
M-2 ....................................................
M-3 .....................................................

5U ..................................

328.4
332.6
1.294.1
1,460.3
1.720.2

351.6
360.1
1.401.5
1.623.6
1,934.9

369.8
386.9
1,526.0
1,775.5
2,151.8

384.8
411.9
1,673.4'
1,957.9'
2,373.5

379.5
402.7
1.632.5
1.889.5
2,282.7

383.4
408.0
1.644.4
1,904.6
2.306.5

88.7
239.7
486.4
454.9
145.2

97.6
253.9
475.8
533.8
194.7

106.3
263.5
417.0
656.2
219.0

116.4
268.4
393.6'
763.2'
248.0'

113.5
266.0
408.1
712.6
223.3

113.9
269.5
412.1
716.4
226.8

386.3
412.0
1,656.5
1,921.8
2,319.1'

388.4
415.0
1,670.8
1,946.1
2,346.5

384.8
411.9
1,673.4'
1,957.9'
2,373.5

372.8
416.1
1,681.7
1,978.2
n.a.

115.8
272.6
407.9
741.6
238.8

116.4
268.4
393.6'
763.2'
248.0'

116.6
256.2
377.1
778.0
257.9

388.0
413.7
1,656.9
1,923.1'
2,318.0'

391.1
417.7
1,665.7
1,942.1
2,344.7

394.7
421.8
1,674.8'
1,962.8'
2,375.0

377.3
420.7
1,685.2
1,983.5
n.a.

114.9
273.1
25.7
32.5
77.4
412.9
723.7
230.7'

116.6
274.5
26.6
32.6
77.0
405.8
735.9
240.0

118.5
276.2
27.1
32.2
75.8
390.9'
757.4'
251.5'

115.8
261.5
43.3
32.9
80.7
374.7
779.3
259.8

C o m ponents

6 C u rrency........ ....................................
7 Demand d ep o sits..............................
8 Savings d eposits................................
9 Small-denomination time deposits3
10 Large-denomination time deposits4

115.1
271.2
414.2
723.6
229.8

Not seasonally adjusted
M easures1

11
12
13
14
15

M -1A ...........................................................
M -1 B ...........................................................
M-2 .............................................................
M-3 .............................................................
L 2 .................................................................

16
17
18
19
20
21
22
23

C u rrency.....................................................
Demand d ep o sits......................................
Other checkable deposits5 ......................
Overnight RPs and Eurodollars6 ..........
Money market mutual fu n d s ..................
Savings deposits.........................................
Small-denomination time deposits3 ___
Large-denomination time deposits4 . . . .

337.2
341.4
1,295.9
1,464.5
1,723.2

360.9
369.5
1,403.6
1,629.2
1,938.3

90.3
247.0
4.2
18.6
3.8
483.1
451.3
147.7

99.4
261.5
8.6
23.9
10.3
472.6
529.8
198.2

379.4
396.4
1,527.7
1,780.8
2,154.3

394.7
421.8
1,674.8'
1,962.8'
2,375.0

377.3
400.5
1,629.5
1,886.6
2,278.6

118.5
276.2
27.1
32.2
75.8
390.9'
757.4'
251.5'

113.7
263.6
23.2
31.6
80.7
408.8
711.1
223.3

382.6
407.2
1,642.3
1,902.3
2,296.2'

C om ponents

108.3
271.2'
17.0
25.3
43.6
414.1
651.2
222.6

1. Composition of the money stock measures is as follows:
M-1A: Averages of daily figures for (1) demand deposits at all commercial banks
other than those due to domestic banks, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automatic transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eu­
rodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.




113.7
268.9
24.6
32.9
78.2
412.4
714.9
226.5

2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Small-denomination time deposits are those issued in amounts of less than
$ 100 , 000 .

4. Large-denomination time deposits are those issued in amounts of $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institu­
tions.
5. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Ca­
ribbean branches of member banks to U.S. nonbank customers.
N o t e . Latest monthly and weekly figures are available from the Board’s H .6(508)
release. Back data are available from the Banking Section, Division of Research
and Statistics.

A14
1.22

Domestic Financial Statistics □ March 1981
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MEMBER BANK DEPOSITS
Billions of dollars, averages of daily figures
1980
Item

1978
Dec.

1979
D ec/

1981

1980
Dec.
July

Aug.

Sept.

Oct.

Nov.2

Dec.

Jan.

Seasonally adjusted
1 Total reserves3 .................................................................................................

41.16

43.46

40.13

42.78

40.75

41.52

41.73

41.23

40.13

40.10

2 Nonborrowed re serv es...................................................................................
3 Required reserv es...........................................................................................
4 Monetary base4 ...............................................................................................

40.29
40.93
142.2

41.98
43.13
153.7

38.44
39.58
159.8

42.39
42.50
158.8

40.09
40.45
158.2

40.21
41.26
159.5

40.42
41.52
160.9

39.17
40.73
160.7

38.44
39.58
159.8

38.70
39.56
160.1

5 Member bank deposits subject to reserve requirements5 ........................
6 Time and savings.............................................................................................
Demand
7
P rivate...........................................................................................................
8 U.S. governm ent.........................................................................................

616.1
428.7

644.5
451.2

701.8
485.6'

658.5
467.0

667.8
474.2

678.2
482.0

684.7
485.5'

694.3
475.4'

701.8
485.6'

703.8
517.4

185.1
2.2

191.5
1.8

196.0
1.9

189.1
2.5

191.5
2.1

194.5
1.8

195.6
2.4

198.1
2.2

196.0
1.9

184.1
2.3

Not seasonally adjusted
9 Monetary base4 ...............................................................................................

144.6

156.2

162.5

159.6

158.0

159.0

160.6

161.5

162.5

161.0

10 Member bank deposits subject to reserve requirements5 ........................

624.0

652.7

710.3

658.2

662.5

675.6

684.2

694.6

710.3

712.6

11 Time and savings.............................................................................................
Demand
12 P rivate...........................................................................................................
13 U.S. governm ent.........................................................................................

429.6

452.1

486.5'

466.0

471.8

479.6

484.5'

474.5'

486.5'

493.4

191.9
2.5

198.6
2.0

203.2
2.1

190.0
2.2

189.0
1.7

193.9
2.1

196.4
2.1

199.6
1.9

203.2
2.1

189.9
2.1

1.
Reserves of depository institutions series reflect actual reserve requirement
rcentages with no adjustment to eliminate the effect of changes in Regulations
and M. Before Nov. 13, 1980, the date of implementation of the Monetary
Control Act, only the reserves of commercial banks that were members of the
Federal Reserve System were included in the series. Since that date the series
include the reserves of all depository institutions. In conjunction with the imple­
mentation of the act, required reserves of member banks were reduced about $4.3
billion and required reserves of other depository institutions were increased about
$1.4 billion. Effective Oct. 11, 1979, an 8 percentage point marginal reserve re­
quirement was imposed on “Managed Liabilities.” This action raised required
reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point mar­
ginal reserve requirement was raised to 10 percentage points. In addition the base
upon which the marginal reserve requirement was calculated was reduced. This
action increased required reserves about $1.7 million in the week ending Apr. 2,
1980. Effective May 29, 1980 the marginal reserve requirement was reduced from
10 to 5 percentage points and the base upon which the marginal reserve requirement
was calculated was raised. This action reduced required reserves about $980 million
in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal
reserve requirement on managed liabilities and the 2 percent supplementary reserve
requirement against large time deposits were removed. These actions reduced
required reserves about $3.2 billion.




2. Reserve measures for November reflect increases in required reserves asso­
ciated with the reduction of weekend avoidance activities of a rew large banks. The
reduction in these activities lead to essentially a one-time increase in the average
level of required reserves that need to be held for a given level of deposits entering
the money supply. In November, this increase in required reserves is estimated at
$550 to $600 million.
3. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
4. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U.S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
5. Includes 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. government, less cash items in process of collection and demand
balances due from domestic commercial banks.
N o t e . Latest monthly and weekly figures are available from the Board’s H .3(502)
statistical release. Back data and estimates of the impact on required reserves and
changes in reserve requirements are available from the Banking Section, Division
of Research and Statistics.

Monetary Aggregates
1.23

LOANS AND SECURITIES

A 15

All Commercial Banks*

Billions of dollars; averages of Wednesday figures
Category

1977
Dec.

1978
Dec.

1980

1979
Dec.

1981
1977
Dec.

Dec.

1 Total loans and securities2 ............................

Memo:
13 Total loans and securities plus loans sold2*9
14 Total loans plus loans sold2 9 ......................
15 Total loans sold to affiliates9 ......................
16 Commercial and industrial loans plus loans
sold9 ...........................................................
17 Commercial and industrial loans sold9 ..
18 Acceptances held ......................................
19 Other commercial and industrial loans ..
20
To U.S. addressees11 ............................
21
To non-U.S. ad d ressees........................
22 Loans to foreign banks ................................
23 Loans to commercial banks in the
United S ta te s ...........................................

891.1
99.5
159.6
632.1
211.25
175.25
138.2
20.6
25.85
25.8
5.8
29.5

1981

Dec.

Jan.

Not seasonally adjusted

1,014.33

1,132.54

1,234.1

1,250.8

93.4
173.I 3
747.83
246.56
210.5
163.9
19.4
27.17
28.2
7.4
44.93

93.8
191.5
847.24
290.54
242.44
185.0
18.3
30.34
31.0
9.5
40.2

109.6
214.3
910.1
323.1
260.9
175.2
17.9
30.7
34.2
11.1
56.9

112.7
216.5
921.5
327.9
262.7
174.9
19.0
31.4
34.5
11.5
59.6

899.1
100.7
160.2
638.3
212.65
175.55
139.0
22.0
26.35
25.7
5.8
31.5

1,023.83

1,143.04

1,245.7

1,251.1

94.6
173.93
755.43
248.26
210.9
164.8
20.7
27.67
28.1
7.4
47.63

95.0
192.3
855.74
292.44
242.94
186.2
19.6
30.84
30.8
9.5
43.5

111.0
215.2
919.5
325.3
261.4
176.2
19.1
31.3
34.1
11.1
61.0

113.8
216.1
921.2
327.0
262.7
174.9
19.3
31.1
34.2
11.5
68.5

895.9

1,018.13

1,236.8

1,253.5

903.9

1,027.63

l,145.74-»

1,248.4

1,253.9

636.9
4.8

751.63
3.8

850.004-8
2.8s

912.8
2.7

924.3
2.8

643.0
4.8

759.23
3.8

858.44-8
2.88

922.2
2.7

924.0
2.8

213.95
2.7
7.5
203.75
193.85
9.95
13.5

248.56-10
1.9*0
6.8
239.7
226.6
13.1
21.2

292.34-8
1.8s
8.5
282.0
263.2
18.8
18.7

324.9
1.8
7.8
315.3
293.5
21.8
24.0

329.8
1.9
8.4
319.5
295.6
23.9
24.7

215.35
2.7
8.6
203.95
193.75
10.35
14.6

250.l6.io
I .910
7.5
240.9
226.5
14.4
23.0

294.24-8
1.88
9.4
283.1
263.2
19.8
20.1

327.1
1.8
8.5
316.8
293.5
23.3
25.8

328.8
1.9
8.8
318.1
293.6
24.5
25.7

n.a.

n.a.

56.9

n.a.

n.a.

54.1

57.3

1,135.34’8

77.8

1. Includes domestic chartered banks; U.S. branches, agencies, and New York
investment company subsidiaries of foreign banks; and Eage Act corporations.
2. Excludes loans to commercial banks in the United States.
3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion.
“Other securities” were increased by $1.5 billion and total loans were reduced by
$1.6 billion largely as the result of reclassifications of certain tax-exempt obligations.
Most of the loan reduction was in “all other loans.”
4. As of Jan. 3, 1979, as the result of reclassifications, total loans and securities
and total loans were increased by $0.6 billion. Business loans were increased by
$0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were
reduced by $0.3 billion.
5. As of Dec. 31,1977, as the result of loan reclassifications, business loans were
reduced $0.2 billion and nonbank financial loans $0.1 billion; real estate loans were
increased $0.3 billion.
6. As of Dec. 31,1978, commercial and industrial loans were reduced $0.1 billion
as a result of reclassifications.




1980
1979
Dec.

Jan.

Seasonally adjusted

2 U.S. Treasury securities................................
3 Other secu rities...............................................
4 Total loans and leases2 ..................................
5 Commercial and industrial loans ............
6 Real estate lo a n s ........................................
7 Loans to individuals ...................................
8
Security lo a n s ...............................................
9 Loans to nonbank financial institutions .
10 Agricultural loans ......................................
11 Lease financing receivables......................
12 All other lo a n s .............................................

1978
Dec.

60.3

81.9

7. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the
result of reclassification.
8. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
9. Loans sold are those sold outright to a bank’s own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank’s holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. As of Dec. 31, 1978, commercial and industrial loans sold outright were
increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount
was offset by a balance sheet reduction of $0.1 billion as noted above.
11. United States includes the 50 states and the District of Columbia.
N o t e . Data are prorated averages of Wednesday data for domestic chartered
banks, and averages of current and previous montn-end data for foreign-related
institutions.

A16
1.24

Domestic Financial Statistics □ March 1981
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1
Monthly averages, billions of dollars
December outstanding

Outstanding in 1980 and 1981

Source
1977

1
2
3
4
5
6

Total nondeposit funds
Seasonally adjusted2 ................................................
Not seasonally adjusted ..........................................
Federal funds, RPs, and other borrowings from non­
banks
Seasonally adjusted3 ................................................
Not seasonally adjusted ..........................................
Net Eurodollar borrowings, not seasonally adjusted
Loans sold to affiliates, not seasonally adjusted4 5 .

1978

1979

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

61.8
60.4

85.4
84.4

118.8
117.4

119.9
123.0

114.1
114.2

112.2
116.4

107.3
110.3

112.0
112.5

118.6
119.6

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

58.4
57.0
- 1 .3
4.8

74.8
73.8
6.8
3.8

88.0
86.5
28.1
2.8

94.2
97.4
23.0
2.6

96.7
96.8
14.6
2.8

98.5
102.7
10.9
2.8

94.0
97.1
10.3
2.9

100.2
100.8
8.9
2.9

104.4
105.4
11.5
2.8

n.a.
n.a.
7.5
2.6

n.a.
n.a.
7.0
2.7

n.a.
n.a.
8.7
2.8

-1 2 .5
21.1
8.6

-1 0 .2
24.9
14.7

6.5
22.8
29.3

2.6
27.3
30.0

- 5 .4
30.1
24.7

- 8 .4
32.7
24.3

-1 0 .3
35.8
25.5

-1 4 .5
38.2
23.7

-1 2 .9
38.3
25.5

-1 4 .2
37.2
23.0

-1 4 .7
37.5
22.7

-1 6 .2
37.4
21.2

11.1
10.3
21.4
36.3
35.1

17.0
14.2
31.2
44.8
43.6

21.6
28.9
50.5
49.2
47.9

20.5
28.4
48.8
43.7
46.0

19.9
28.5
48.4
49.0
48.8

19.3
30.8
50.1
55.0
54.7

20.6
30.9
51.6
57.5
59.1

23.3
30.3
53.6
56.2
58.7

24.4
30.8
55.2
59.7
59.5

21.7
32.3
54.1
58.8
60.9

21.7
33.7
55.4
63.4
61.7

24.9
31.2
56.1
68.7
65.0

4.4
5.1

8.7
10.3

8.1
9.7

9.5
8.5

8.6
10.0

10.9
9.3

11.8
9.3

126
14 2

14.0
12.7

6.9
6.6

7.6
9.0

8.0
7.9

162.0
165.4

213.0
217.9

227.6
232.8

242.1
240.2

237.6
235.5

234.0
230.0

234.4
232.1

238.8
236.7

241.6
241.1

249.3
250.8

257.5
263.4

268.2
272.8

M em o

7 Domestic chartered banks net positions with own
foreign branches, not seasonally adjusted6 ___
8
Gross due from balances ........................................
9
Gross due to balances ............................................
10 Foreign-related institutions net positions with di­
rectly related institutions, not seasonally
adjusted7 .................................................................
11 Gross due from balances ........................................
12 Gross due to balances ............................................
13 Security RP borrowings, seasonally adjusted8 ........
14 Not seasonally adjusted ..........................................
15 U.S. Treasury demand balances, seasonally
adjusted9 ................................................................
16 Not seasonally adjusted ..........................................
17 Time deposits, $100,000 or more, seasonally
adjusted10...............................................................
18 Not seasonally adjusted ..........................................

1. Commercial banks are those in the 50 states and the District of Columbia with
national or state charters plus U.S. branches, agencies, and New York investment
company subsidiaries of foreign banks and Edge Act corporations.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In­
cludes averages of Wednesday data for domestic chartered banks and averages of
current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participa­
tions in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.




6. Includes averages of daily figures for member banks and quarterly call report
figures for nonmember banks.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages of daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.
N o t e . Security RP borrowings, U.S. Treasury demand balances, and time de­
posits in denominations of $100,000 or more have revised to reflect benchmark
adjustments to call reports.

Commercial Banks
1.25

ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS

A17

Last-Wednesday-of-Month Series

Billions of dollars except for number of banks
1980

1981

Account
A p r/

M ay'

Juner

July'

A ug/

S e p t/

O ct/

N ov/

D ec/

Jan/

Feb.

1 Loans and investments, excluding
interbank ...............................................
2 Loans, excluding interbank .......................
3
Commercial and industrial ..................
4
O th e r .............................................................
5 U .S. Treasury se cu ritie s .............................
6 Other s e c u r itie s .............................................

1,093.5
801.7
259.7
541.9
94.3
197.6

1,087.0
792.5
256.6
535.9
94.8
199.8

1,090.5
793.2
256.9
536.4
96.2
201.1

1,095.3
793.4
257.1
536.3
98.7
203.3

1,108.5
801.9
259.5
542.4
101.4
205.2

1,117.9
809.1
263.9
545.2
103.2
205.6

1,134.8
821.6
269.0
552.6
104.4
208.9

1,150.8
832.8
275.7
557.1
107.1
210.9

1,177.1
851.4
281.5
569.9
111.2
214.6

1,166.0
840.2
277.6
562.6
112.0
213.8

1,167.0
839.0
276.3
562.7
113.7
214.3

7 Cash assets, t o t a l ...........................................
8
Currency and c o i n ....................................
9
Reserves with Federal Reserve Banks
10
Balances with depository institutions
11
Cash items in process o f collection ..

168.5
16.7
33.2
50.0
68.6

172.7
17.7
37.9
48.3
68.9

150.6
17.3
29.5
45.8
58.1

154.3
17.5
32.2
45.0
59.6

148.8
18.2
29.0
45.9
55.8

156.6
17.8
31.1
46.8
60.9

155.9
18.3
31.7
47.2
58.8

175.6
16.9
30.4
56.1
72.2

194.2
19.9
28.2
63.0
83.0

159.3
18.7
25.2
54.9
60.5

165.9
18.6
30.4
54.6
62.3

D omestically C hartered
C ommercial B anks 1

12 Other assets2 ..................................................

135.8

140.1

143.8

143.5

150.3

154.4

151.3

151.3

165.6

155.8

160.1

13 Total assets/total liabilities and capital ..

1,397.8

1,399.8

1,384.9

1393.1

1,407.7

1,428.9

1,442.1

1,477.7

1,537.0

1,481.0

1,493.0

14 Deposits ...........................................................
15
Demand ......................................................
16
Savings ........................................................
17
Time .............................................................

1,063.9
377.5
189.2
497.2

1,060.9
370.3
192.4
498.2

1,048.1
358.1
197.7
492.4

1,053.1
363.5
205.5
484.2

1,062.8
363.4
208.5
490.9

1,077.2
369.7
209.1
498.5

1,092.9
375.7
210.9
506.2

1,126.2
393.0
209.5
523.7

1,187.4
432.2
201.3
553.8

1,128.7
351.1
211.9
565.7

1,132.0
345.5
214.3
572.3

18 B orrow ings......................................................
19 Other liabilities .............................................
20 Residual (assets less lia b ilitie s)................

144.7
80.5
108.7

152.6
77.9
108.5

151.0
75.9
109.8

157.0
74.0
109.0

158.5
75.4
111.0

163.7
75.6
112.3

161.7
74.7
112.7

157.3
78.1
116.1

156.4
79.0
114.2

156.4
76.7
119.3

163.2
80.3
117.5

M emo :
21 U .S. Treasury note balances included in
b o rrow in g...............................................
22 Number of banks .........................................

14.5
14,629

5.2
14,639

13.3
14,646

7.6
14,658

8.7
14,666

15.7
14,678

11.5
14,760

4.4
14,692

10.2
14,693

9.5
14,689

8.5
14,696

23 Loans and investments, excluding
interbank ...............................................
24 Loans, excluding interbank .......................
25
Commercial and industrial ..................
26
O th e r .............................................................
27 U .S. Treasury s e cu ritie s .............................
28 Other s e c u r itie s .............................................

1,162.8
867.5
302.5
565.0
96.2
199.1

1,154.9
856.9
298.7
558.3
96.7
201.3

1,160.9
860.2
297.6
562.5
98.3
202.5

1,195.2
882.5
308.1
574.4
105.6
207.2

1,262.3
932.5
330.6
601.9
113.7
216.3

29 Cash assets, t o t a l ...........................................
30
Currency and c o i n ....................................
31
Reserves with Federal Reserve Banks
32
Balances with depository institutions
33
Cash items in process of collection ..

187.5
16.7
34.0
66.9
70.0

190.9
17.7
38.7
64.0
70.5

172.2
17.3
30.3
65.0
59.7

179.8
17.8
31.7
67.8
62.5

218.6
20.7
28.2
84.9
84.7

n: a.

n. a.

A ll C ommercial B anking
Institutions 3

n. a.

n. a.

n. a.

n .a.

34 Other assets2 .................................................

181.3

186.6

191.0

204.1

221.7

35 Total assets/total liabilities and capital ..

1,531.7

1,532.4

1,524.2

1,579.2

1,702.7

36 Deposits ..........................................................
37
Dem and ......................................................
38
Savings ........................................................
39
Time .............................................................

1,105.1
396.9
189.5
518.7

1,101.1
388.1
192.7
520.3

1,091.9
379.0
198.1
514.8

1,124.5
390.9
209.5
524.1

1,239.9
453.6
201.6
584.7

40 B orrow ings......................................................
41 Other liabilities .............................................
42 Residual (assets less lia b ilitie s)................

188.5
127.1
111.0

194.7
125.8
110.9

197.6
123.3
111.4

211.0
129.8
113.9

211.5
135.5
115.8

M emo :
43 U .S. Treasury note balances included in
b orrow in g ...............................................
44 Number of banks ........................................

14.5
15,004

5.2
15,016

13.3
15,019

15.7
15,069

10.2
15,108

1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks; included are member and non­
member banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement corpo­
rations, and New York State foreign investment corporations.




N o t e . Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month; data for
other banking institutions are for last Wednesday except at end of quarter, when
they are for the last day of the month.
Revised data result from benchmarking to the March 1980 quarterly call. Revised
data for 1979 and 1980 are available from the Banking Section of the Federal
Reserve Board.

A18

Domestic Financial Statistics □ March 1981

1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1980

Feb. 25p

A djust­
ment
bank,
1980

1981

Account
Dec. 31

Jan. 7 p

Jan.
Feb. 14
4p

Jan.
Feb. 21
11p Jan.
Feb.28
ISP

1 Cash items in process of collection ..........................
2 Demand deposits due from banks in the United
States ......................................................................
3 All other cash and due from depository institutions

66,061

56,773

56,397

52,231

49,660

53,422

49,140

62,797

50,785

33

21,581
34,261

21,679
31,202

19,508
35,746

20,194
29,750

20,344
30,979

19,379
31,517

19,614
33,940

22,440
33,511

19,921
35,058

90
-2 3 9

4 Total loans and securities............................................

564,156

567,816

561,445

557,272

553,178

557,234

550,893

556,867

553,706

1,435

39,604
4,362
35,242
10,269
21,616
3,357
78,460
3,316
75,144
16,229
56,078
7,402
48,676
2,837

40,659
6,390
34,268
9,591
21,274
3,403
78,638
3,335
75,303
16,348
56,137
7,273
48,864
2,818

40,449
6,608
33,841
9,353
20,990
3,498
77,742
2,539
75,203
16,214
56,130
7,201
48,929
2,858

40,325
6,544
33,780
9,331
20,950
3,500
77,405
2,329
75,076
16,132
56,101
7,202
48,899
2,843

39,769
6,331
33,438
9,178
20,790
3,469
77,569
2,518
75,051
16,124
56,063
7,244
48,819
2,864

41,122
7,504
33,618
9,342
20,812
3,463
78,251
3,561
74,690
16,143
55,764
7,209
48,555
2,784

40,209
6,477
33,732
9,442
20,836
3.453
77.169
2.608
74.561
16,125
55,631
7,055
48,577
2,804

40,572
6,723
33,849
9,192
21,149
3,508
76,988
2,412
74,575
16,165
55,604
7,046
48,558
2,806

40,816
7,089
33,726
9,207
20,958
3,561
77,374
2,811
74,563
16,111
55,661
7,087
48,574
2,790

148

19 Federal funds sold1 ......................................................
20 To commercial banks ...............................................
21
To nonbank brokers and dealers in securities . . .
??
23 Other loans, g ro s s ........................................................
24 Commercial and industrial ....................................
25
Bankers acceptances and commercial paper ..
26
A llo th e r .................................................................
27
U.S. addressees................................................
28
Non-IJ.S. addressees ...........................................
29 Real estate ....................................................................
30 To individuals for personal expenditures ............
To financial institutions
31
Commercial banks in the United States ..........
32
Banks in foreign countries..................................
33
Sales finance, personal finance companies, etc
34
Other financial institutions ................................
35
To nonbank brokers and dealers in securities . . .
36 To others for purchasing and carrying securities2
37 To finance agricultural pro d u ctio n ........................
38
A llo th e r ....................................................................
39 L ess: Unearned in c o m e...............................................
40
Loan loss reserve ............................................
41 Other loans, net ...........................................................
42 Lease financing receivables
..........................
43 All other assets .............................................................

27,842
19,472
6,380
1,990
430,569
174,768
4,206
170,562
163,276
7,286
111,775
72,294

33,997
24,103
7,854
2,040
426,958
173.239
4,218
169,020
161,782
7,238
112,212
72,616

30,181
21,822
6,059
2,300
425,570
173,116
4,632
168,484
161,194
7,290
112,534
72,389

29,004
19,057
7,359
2,588
423,054
171,922
3,957
167,965
160,597
7,368
112,631
72,132

26,781
18,171
6,366
2,244
421,559
171,348
4,191
167,157
159,752
7,406
112,866
71,954

27,663
19,661
5,873
2,129
422,691
171,890
4,213
167,677
160,504
7,173
113.155
71,664

26,273
18,506
6,098
1,669
419,782
170,104
3,566
166,538
159,349
7,189
113,369
71,370

29,636
21,857
6,120
1,659
422,263
170,258
4,171
166,087
158,942
7,145
113,591
71,323

28,341
20,498
5,924
1,920
419,755
169,482
3,691
165,791
158,752
7,039
113,681
71,174

38
38

5,356
9,770
10,077
15,925
7,844
2,146
5,413
15,200
6,662
5,657
418,250
9,323
87,692

4,544
9,363
10,231
15,591
6,928
2,103
5,358
14,773
6,696
5,740
414,522
9,309
83,667

4,679
9,429
9,999
15,390
6,404
2,170
5,332
14,126
6,767
5,731
413,072
9,500
85,436

4,099
9,696
9,966
15,267
5,748
2,140
5,306
14,147
6,772
5,743
410,539
9,518
82,246

4,220
9,018
9,962
15,291
5,548
2,198
5,335
13,817
6,752
5,748
409,060.
9,595
82,035

3,899
9,034
9,912
15,372
5,590
2,207
5,338
14,628
6,647
5,846
410,198
9,909
83,736

4,351
8,568
9,826
15,243
5,213
2,222
5,295
14,219
6,666
5,874
407,242
9,935
87,436

4,638
9,172
9,872
15,311
5,336
2,273
5,326
15,162
6,692
5,899
409,672
9,940
82,848

4,383
8,366
9,755
15,120
5,912
2,270
5,374
14,237
6,661
5,918
407,176
9,986
85,057

44 Total assets.....................................................................

783,074

770,447

768,033

751,211

745,791

755,198

750,959

768,403

754,513

1,475

45 Demand deposits...........................................................
46
Mutual savings banks
................
47
Individuals, partnerships, and corporations ........
48
States and political subdivisions ............................
49
U.S. governm ent......................................................
50
Commercial banks in the United States ..............
51
Banks in foreign countries......................................
52 Foreign governments and official institutions . . .
53
Certified and officers’ checks ................................
54 Time and savings d e p o sits..........................................
55
Savings .......................................................................
56
Individuals and nonprofit organizations ..........
Partnerships and corporations operated for
57
p r o f it...............................................................
58
Domestic governmental units ............................
59
All o th e r ................................................................
60 Time ...........................................................................
61
Individuals, partnerships, and corporations . . .
62
States and political subdivisions ........................
63
U.S. governm ent...................................................
64
Commercial banks in the United States ..........
Foreign governments, official institutions, and
65
b a n k s ...............................................................
Liabilities for borrowed money
66 Borrowings from Federal Reserve B a n k s ............
67
Treasury tax-and-loan notes
................
68
All other liabilities for borrowed money3 ............
69 Other liabilities and subordinated notes and
debentures .............................................................

228,289
838
158,408
5,835
1,107
41,422
8,991
2,459
9,229
313,978
72,570
68,317

206,621
744
142,108
5,126
1,609
39,116
7,739
1,658
8,519
316,877
75,671
71,425

202,179
714
140,293
4,817
1,835
37,148
7,558
1,475
8,338
316,915
75,626
71,376

191,315
611
132,325
5,177
1,465
34,089
8,350
1,822
7,474
319,032
75,482
71,370

185,520
574
127,902
4,846
1,676
34,038
8,047
1,457
6,980
321,019
74,493
70,368

191,992
733
130,316
5,282
3,506
34,459
7,177
1,783
8,736
321,653
75,642
71,497

188,857
623
128,010
4,696
1,979
34,976
9,901
1,546
7,126
320,325
75,538
71,387

201,991
747
137,783
4,755
1,651
37,777
9,487
2,292
7,499
320,282
75,860
71,634

183,252
566
123,719
4,714
1,579
35,288
8,434
1,591
7,360
320,996
75,072
70,984

391

3,594
636
23
241,408
205,810
20,185
300
8,422

3,537
689
20
241,206
206,231
19,935
301
8,169

3,555
673
22
241,290
206,376
19,976
314
8,227

3,451
637
23
243,550
208,187
20,207
297
8,557

3,473
631
21
246,526
210,710
20,718
309
8,448

3,454
671
20
246,011
210,394
20,567
298
8,416

3,461
670
19
244,788
209,275
20,755
298
8,085

3,491
715
20
244,422
208,897
20,789
310
8,009

3,416
655
18
245,924
209,948
21,207
306
8,108

19
5

6,691

6,569

6,396

6,302

6,340

6,336

6,375

6,418

6,355

1,055
6,696
119,822

316
2,803
133,386

1,950
2,408
134,609

582
4,386
125,512

467
6,007
121,091

119
1,939
126,758

375
1,821
126,689

202
2,008
130,179

4,412
5,895
124,549

63,016

60,147

59,729

60,148

61,217

61,773

61,984

63,008

64,685

74

70 Total liabilities..............................................................

732,857

720,149

717,790

700,975

695,321

704,235

700,052

717,670

703,790

1,354

50,216

50,297

50,243

50,236

50,470

50,963

50,907

50,733

50,724

120

Securities

5 U.S. Treasury securities...............................................
6
7 Investment account, by maturity ..........................
8
One year or less ..................................................
9
Over one through five years ..............................
10
Over five years .....................................................
11 Other secu rities............................................................
1?
13 Investment a c co u n t..................................................
14
U.S. government ag e n cies..................................
15
States and political subdivision, by maturity ..
16
One year or less ..............................................
17
Over one year ..................................................
18
Other bonds, corporate stocks and securities .

148
71
76
1
106
106
50
58
11
48
-3

Loans

1,192
354
354
354
448
377
-6
7
1
2
6
3
37
11
1,143
155

Deposits

71 Residual (total assets minus total liabilities)4

1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion
FRASER
or more on Dec. 31, 1977, see table 1.13.

Digitized for


325
17
2
9
11
26
861
296
271

565
479
79
5
2

29

4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.

Weekly Reporting Banks
1.27

A19

LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1980

Feb. IIP

Feb. ISP

Feb. 25p

Adjust­
ment
bank,
1980

1981

Account
Dec. 31

Jan. 7

Jan. 14

Jan. 21

Jan. 28p

Feb. 4p

1 Cash items in process of collection ......................................
2 Demand deposits due from banks in the United States . . .
3 All other cash and due from depository institutions ........

62,722
20,856
31,838

54,008
20,849
29,192

53,487
18,840
33,559

49,255
19,538
27,536

47,184
19,680
28,758

50,544
18,580
29,500

46,644
18,873
31,640

59,169
21,572
31,267

48,181
19,370
32,563

33
-1 9
-2 4 1

4 Total loans and securities.........................................................

526,068

529,522

523,956

520,106

516,504

520,140

514,146

519,922

517,070

1,368

36,649
4,313
32,337
9,475
19,886
2,976
71,913
3,234
68,680
14,903
51,113
6,592
44,521
2,663

37,804
6,341
31,463
8,852
19,588
3,022
72,041
3,234
68,806
14,988
51,189
6,489
44,700
2,629

37,662
6,547
31,115
8,704
19,294
3,117
71,191
2,469
68,722
14,868
51,183
6,407
44,776
2,671

37,494
6,465
31,029
8,678
19,228
3,124
70,890
2,260
68,630
14,829
51,145
6,404
44,741
2,656

36,973
6,258
30,715
8,524
19,097
3,094
71,045
2,435
68,610
14,822
51,096
6,442
44,654
2,692

38,281
7,452
30,829
8,627
19,112
3,091
71,743
3,503
68,240
14,831
50,798
6,416
44,382
2,611

37,318
6,410
30,908
8,714
19,110
3,084
70,699
2,554
68,145
14,852
50,659
6,272
44,387
2,633

37,575
6,671
30,904
8,456
19,310
3,138
70,526
2,365
68,161
14,894
50,632
6,264
44,368
2,635

37,871
7,034
30,838
8,485
19,155
3,198
70,937
2,761
68,176
14,864
50,691
6,316
44,374
2,620

146

23 Other loans, g ro s s .....................................................................
24
Commercial and industrial .................................................
Bankers acceptances and commercial paper ..............
25
26
A llo th e r .............................................................................
27
U.S. addressees.............................................................
28
Non-U S addressees
. ..
...
29
Real estate .............................................................................
30 To individuals for personal expenditures ........................
To financial institutions
31
Commercial banks in the United States ......................
32
Banks in foreign co u n tries..............................................
33
Sales finance, personal finance companies, etc ..........
34
Other financial institutions ............................................
35 To nonbank brokers and dealers in securities
..
36 To others for purchasing and carrying securities2 ..........
37 To finance agricultural p ro duction....................................
A llo th e r.................................................................................
38
39 L ess : Unearned in c o m e ...........................................................
40
Loan loss reserve .........................................................
41 Other loans, net .......................................................................
42 Lease financing receivables.....................................................
43 All other assets .........................................................................

24,330
16,489
5,882
1,959
404,526
165,826
4,006
161,820
154,604
7,216
105,403
63,634

30,163
20,919
7,233
7,011
400,974
164,358
4,015
160,343
153,175
7,167
105,777
63,929

26,912
19,033
5,606
2,273
399,711
164,253
4,435
159,818
152,600
7,218
106,111
63,727

25,935
16,696
6,677
2,563
397,322
163,142
3,767
159,375
152,080
7,295
106,194
63,492

24,058
15,998
5,839
2,221
395,953
162,636
4,008
158,628
151,295
7,333
106,432
63,376

24,497
17,104
5,284
2,108
397,138
163,215
4,047
159,168
152,060
7,108
106,750
63,130

23,312
16,096
5,566
1,650
394,380
161,488
3,395
158,093
150,978
7,116
106,949
62,858

26,554
19,298
5,633
1,623
396,882
161,655
4,001
157,655
150,583
7,072
107,151
62,832

25,461
18,138
5,435
1,889
394,406
160,853
3,516
157,337
150,371
6,966
107,238
62,730

5,226
9,692
9,911
15,522
7,701
1,909
5,259
14,443
6,029
5,322
393,175
9,050
85,194

4,425
4,561
9,260
9,357
10,069
9,836
15,190
15,007
6,830
6,306
1,866
1,944
5,209
5,185
13,424
14,061
6,062
6,132
5,398
5,387
389,514 388,191
9,230
9,038
81,474
83,233

3,995
9,625
9,806
14,888
5,662
1,902
5,163
13,454
6,130
5,406
385,786
9,246
79,998

4,103
8,947
9,805
14,921
5,456
1,965
5,192
13,120
6,115
5,410
384,427
9,324
79,787

3,788
8,907
9,758
15,006
5,494
1,977
5,197
13,915
6,015
5,504
385,619
9,635
81,396

4,217
8,500
9,680
14,888
5,124
1,991
5,156
13,527
6,032
5,531
382,816
9,660
85,156

4,534
9,066
9,734
14,962
5,242
2,047
5,188
14,471
6,059
5,556
385,267
9,665
80,517

4,269
8,283
9,613
14,772
5,835
2,050
5,234
13,530
6,030
5,575
382,800
9,711
82,587

44 Total assets.................................................................................

735,728

724,084

705,679

701,237

709,795

706,120

722,113

709,482

1,295

45 Demand deposits.......................................................................
46
Mutual savings banks ...........................................................
47
Individuals, partnerships, and corporations ....................
48
States and political subdivisions ........................................
49
U.S. governm ent...................................................................
50 Commercial banks in the United States ..........................
51
Banks in foreign co u n tries...................................................
52
Foreign governments and official institutions ................
53
Certified and officers' checks ............................................
54 Time and savings d e p o s its .......................................................
55
Savings ...................................................................................
56
Individuals and nonprofit organizations ......................
57
Partnerships and corporations operated for profit . . .
58
Domestic governmental units ........................................
59
All o th e r .............................................................................
60 Time .......................................................................................
61
Individuals, partnerships, and corporations ................
62
States and political subdivisions ....................................
U.S. governm ent...............................................................
63
64
Commercial banks in the United States ......................
65
Foreign governments, official institutions, and banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve B a n k s ........................
67 Treasury tax-and-loan notes ..............................................
68 All other liabilities for borrowed money3 ........................
69
Other liabilities and subordinated notes and debentures

213,901

193,670

189,665

179,027

712
131,862
4,560
1,424
37,623
7,662
1,657
8,170
295,548
69,939
66,030
3,266
622
20
225,609
192,915
17,995
285
7,846
6,569

688
130,481
4,190
1,579
35,770
7,480
1,474
8,002
295,621
69,841
65,921
3,287
612
22
225,780
193,088
18,086
298
7,912
6,396

581
122,873
4,437
1,114
32,740
8,273
1,821
7,188
297,756
69,743
65,959
3,183
578
23
228,012
194,908
18,286
282
8,234
6,302

174,184
551
119,046
4,227
1,477
32,764
7,954
1,454
6,709
299,786
68,821
65,034
3,200
565
21
230,965
197,431
18,782
294
8,118
6,340

179,864
700
121,057
4,612
3,214
33,002
7,105
1,782
8,392
300,186
69,902
66,081
3,190
611
20
230,284
197,003
18,569
283
8,093
6,336

177,229
599
118,882
4,066
1,799
33,691
9,830
1,545
6,817
298,883
69,814
65,991
3,193
610
19
229,069
195,827
18,827
283
7,757
6,375

189,469
716
128,027
4,204
1,474
36,171
9,418
2,253
7,207
298,832
70,105
66,206
3,222
656
20
228,727
195,518
18,812
294
7,685
6,418

172,156
544
115,062
4,096
1,412
33,977
8,369
1,590
7,106
299,350
69,358
65,588
3,148
603
18
229,992
196,419
19,169
290
7,759
6,355

302

806
147,106
5,192
990
39,769
8,877
2,454
8,708
293,036
67,133
63,227
3,310
573
23
225,904
192,582
18,249
284
8,097
6,691
972
6,225
113,095
61,554

211
2,555
126,522
58,576

1,816
2,185
127,823
58,249

540
3,998
118,656
58,750

368
5,541
114,368
59,827

72
1,759
119,898
60,319

375
1,710
119,792
60,526

97
1,821
122,922
61,526

4,272
5,520
117,570
63,206

27
73

70 Total liabilities...........................................................................

688,784

677,083

675,359

658,727

654,072

662,098

658,515

674,668

662,075

1,176

71 Residual (total assets minus total liabilities)4 ....................

46,945

47,001

46,946

46,951

47,165

47,698

47,605

47,445

47,407

118

Securities

5 U.S. Treasury securities...........................................................
6
7 Investment account, by maturity ......................................
8
One year or less ...............................................................
9
Over one through five years ..........................................
10
Over five years .................................................................
11 Other secu rities.........................................................................
V

13
14
15
16
17
18

Investment ac co u n t...............................................................
U.S. government agencies..............................................
States and political subdivision, by maturity ..............
One year or less ...........................................................
Over one year ...............................................................
Other bonds, corporate stocks and securities ............

146
69
76
1
103
103
50
56
8
48
-3

Loans

19 Federal funds sold1 ...................................................................
20 To commercial banks ...........................................................
'M
99

722,305

37
37
1,128
339
339
339
418
362
-6
7
1
2
6
-1
35
11
1,081
153

Deposits

1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to re­
purchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.




240
15
2
9
11
26
774
238
214
19
5
536
451
79
5
2

4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.

A20
1.28

Domestic Financial Statistics □ March 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1980

1981

Account
Dec. 31

Jan. 7

Jan. 14

Jan. 21

Jan. 28p

Feb. 4p

Feb. IIP

Feb. 18P

Feb. 25p

1 Cash items in process of collection ......................................
2 Demand deposits due from banks in the United States . . .
3 All other cash and due from depository institutions ........

24,782
14,724
7,742

20,614
15,101
8,286

21,628
13,387
11,388

18,696
14,305
5,904

18,644
14,527
7,178

18,772
12,841
7,712

17,906
13,247
8,378

19,549
15,089
10,642

18,827
14,232
8,419

4 Total loans and securities1 .......................................................

129,586

129,279

126,775

125,235

123,296

124,325

121,931

125,738

123,490

8,418
1,454
6,412
551

8,238
1,585
6,113
539

7,990
1,619
5,817
554

7,990
1,593
5,848
549

7,985
1,614
5,834
537

8,004
1,666
5,809
529

7,975
1,653
5,807
515

8,266
1,612
6,085
570

8,120
1,598
5,952
570

13,676
2,305
10,750
1,664
9,087
620

13,752
2,319
10,797
1,668
9,129
636

13,698
2,303
10,753
1,562
9,190
642

13,702
2,298
10,776
1,562
9,214
627

13,675
2,296
10,757
1,554
9,203
622

13,617
2,307
10,685
1,482
9,202
626

13,525
2,302
10,612
1,387
9,225
611

13,532
2,302
10,613
1,378
9,234
618

13,561
2,331
10,627
1,380
9,247
602

19 Federal funds sold3 ...................................................................
20 To commercial banks ...........................................................
21 To nonbank brokers and dealers in securities ................
22 To others ...............................................................................
23 Other loans, g ro s s .....................................................................
24 Commercial and industrial ................................................
25
Bankers acceptances and commercial paper ..............
26
A llo th e r .............................................................................
27
U.S. ad dressees.............................................................
28
Non-U.S. addressees ...................................................
29 Real estate .............................................................................
30 To individuals for personal expenditures ........................
31 To financial institutions
Commercial banks in the United States ......................
32
Banks in foreign co u n tries..............................................
Sales finance, personal finance companies, etc............
33
34
Other financial institutions ............................................
35 To nonbank brokers and dealers in securities ................
36 To others for purchasing and carrying securities4 ..........
37 To finance agricultural p roduction....................................
38 A llo th e r.................................................................................
39 L ess: Unearned in c o m e...........................................................
40
Loan loss reserve .........................................................
41 Other loans, net .......................................................................
42 Lease financing receivables....................................................
43 All other assets5 ..............................................................................

7,284
3,461
3,061
762
103,141
51,754
767
50,986
48,477
2,510
14,826
9,369

9,819
5,414
3,605
801
100,435
51,243
790
50,453
47,995
2,458
14,816
9,446

7,994
4,210
2,678
1,105
100,084
51,551
1,183
50,368
47,784
2,584
14,890
9,392

7,780
3,914
2,890
976
98,762
51,082
942
50,140
47,528
2,612
14,891
9,403

7,254
3,836
2,545
872
97,385
50,614
1,056
49,558
46,944
2,614
14,941
9,396

6,979
3,536
2,640
802
98,709
50,845
1.155
49.690
47.077
2.613
15.115
9,389

6,112
2,517
2,917
678
97,327
49,785
680
49,105
46,496
2,609
15,154
9,390

8,738
5,267
2,956
515
98,230
49,857
1,037
48,820
46,231
2,588
15,180
9,422

7,823
4,569
2,664
590
97,030
49,378
886
48,491
45,951
2,540
15,237
9,388

2,081
5,072
4,395
4,848
4,838
405
435
5,117
1,149
1,783
100,208
1,758
37,241

1,502
4,689
4,547
4,703
3,960
395
439
4,695
1,157
1,809
97,470
1,768
36,975

1,660
4,686
4,342
4,621
3,602
431
444
4,465
1,187
1,804
97,093
1,966
38,782

1,268
4,918
4,238
4,562
3,055
424
447
4,474
1,190
1,808
95,764
1,966
34,272

1,280
4,326
4,181
4,454
3,024
472
422
4,274
1,198
1,804
94,382
1,973
34,615

1,163
4,387
4,300
4,541
3,207
489
439
4,832
1,146
1,839
95,724
2,271
37,144

1,359
4,160
4,273
4,434
3,068
489
436
4,778
1,153
1,856
94,318
2,259
39,498

1,643
4,592
4,232
4,432
3,075
507
439
4,851
1,163
1,866
95,201
2,259
35,403

1,430
4,051
4,162
4,380
3,563
504
432
4,504
1,170
1,874
93,986
2,261
36,713

44 Total assets.................................................................................

215,832

212,022

213,926

200,380

200,234

203,064

203,219

208,680

203,942

45 Demand deposits.......................................................................
46
Mutual savings b a n k s ...........................................................
47
Individuals, partnerships, and corporations ....................
48
States and political subdivisions ........................................
49
U.S. governm ent...................................................................
50
Commercial banks in the United States ..........................
51
Banks in foreign countries...................................................
52 Foreign governments and official institutions ................
Certified and officers’ checks ............................................
53
54 Time and savings d e p o s its......................................................
55
Savings ...................................................................................
Individuals and nonprofit organizations ......................
56
57
Partnerships and corporations operated for profit . . .
58
Domestic governmental units ........................................
59
A llo th e r .............................................................................
60 Time .......................................................................................
61
Individuals, partnerships, and corporations ................
62
States and political subdivisions ....................................
63
U.S. governm ent...............................................................
64
Commercial banks in the United States ......................
65
Foreign governments, official institutions, and banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve B a n k s ........................
67 Treasury tax-and-loan notes ...............................................
68
All other liabilities for borrowed money6 ........................
69 Other liabilities and subordinated notes and debentures ..

77,180
436
38,646
578
173
24,145
7,045
2,073
4,083
57,318
9,547
9,124
308
107
8
47,770
41,064
1,436
14
2,370
2,886

69,113
383
33,926
366
350
23,240
5,832
1,355
3,662
57,961
9,558
9,131
305
115
6
48,403
41,882
1,384
14
2,305
2,818

69,240
363
35,087
467
401
22,373
5,680
1,139
3,731
57,590
9,476
9,059
297
113
7
48,114
41,575
1,339
22
2,460
2,719

64,510
307
32,596
528
291
19,279
6,607
1,523
3,379
57,962
9,330
8,928
290
104
7
48,633
42,044
1,413
25
2,515
2,636

64,199
285
32,274
525
352
20,231
6,184
1,160
3,186
58,096
9,150
8,746
289
111
4
48,946
42,395
1,508
24
2,347
2,672

64,125
362
31,660
492
831
19,328
5,517
1,501
4,432
58,201
9,239
8,823
2.90
122
4
48,961
42,402
1,559
32
2,304
2,664

64,920
331
30,646
424
426
20,641
8,028
1,277
3,146
57,318
9,217
8,787
289
136
5
48,101
41,492
1,674
37
2,196
2,702

67,386
381
33,776
431
306
20,029
7,561
1,925
2,976
56,444
9,231
8,797
287
144
3
47,213
40,503
1,725
38
2,213
2,734

64,502
292
30,715
425
240
21,529
6,583
1,329
3,389
55,707
9,147
8,721
288
135
3
46,560
39,631
1,770
36
2,258
2,865

475
1,833
37,976
25,296

95
45,713
23,402

1,490
1
47,020
22,958

1
39,535
22,816

1
38,223
24,175

2
40,516
24,342

150
583
40,394
24,002

354
43,974
24,727

2,730
1,500
38,151
25,637

70 Total liabilities...........................................................................

200,077

196,283

198,300

184,825

184,695

187,187

187,367

192,884

188,227

71 Residual (total assets minus total liabilities)4 ....................

15,755

15,738

15,627

15,555

15,539

15,877

15,852

15,796

15,716

Securities

5 U.S. Treasury securities2 .........................................................
6 Trading account2 ...................................................................
Investment account, by maturity ......................................
7
8
One year or less ...............................................................
9
Over one through five years ..........................................
Over five years .................................................................
10
11
1? Trading account2 ...................................................................
13 Investment ac co u n t...............................................................
14
U.S. government agencies..............................................
15
States and political subdivision, by maturity ..............
16
One year or less ...........................................................
17
Over one year ...............................................................
18
Other bonds, corporate stocks and securities ............
Loans

Deposits

1.
2.
3.
4.

Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.




5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase
7. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.

Weekly Reporting Banks
1.29

LARGE WEEKLY REPORTING COMMERCIAL BANKS

A21

Balance Sheet Memoranda

Millions of dollars, Wednesday figures
1980

1981

Account
D ec. 31

Jan. 7

Jan. 14

Jan. 21

Jan. 28p

Feb. Ap

Feb. IIP

Feb. 18P

Feb. 25 p

Adjust­
ment
bank,
1980

B anks with A ssets o f $750 M illion or M ore
1 Total loans (gross} and securities adjusted1 .
2 Total loans (gross) adjusted1 .............................
3 Dem and deposits adjusted2 ................................

551,646
433,582
119,700

551,605
432,308
109,123

547,441
429,250
106,799

546,631
428,902
103,530

543,287
425,949
100,147

546,167
426,795
100,605

540,576
423,198
102,762

542,963
425,404
99,767

541,405
423,216
95,600

1,451
1,197
347

4 Time deposits in accounts of $100,000 or
m o r e ....................................................................
5
Negotiable CDs ..................................................
6
Other time deposits ...........................................

159,443
116,374
43,069

158,357
114,827
43,530

158,214
114,303
43,912

160,187
115,864
44,324

162,410
117,693
44,717

161,311
116,453
44,858

160,059
114,752
45,307

159,520
114,292
45,228

160,016
114,208
45,808

113
54
58

7 Loans sold outright to affiliates3 .......................
8
Commercial and industrial .............................
9
Other ......................................................................

2,748
1,800
947

2,773
1,862
911

2,778
1,865
913

2,753
1,833
920

2,760
1,850
910

2,785
1,878
906

2,793
1,884
909

2,883
1,977
906

2,760
1,846
913

10 Total loans (gross} and securities adjusted1
11 Total loans (gross) adjusted1 .............................
12 Dem and deposits adjusted2 ................................

515,704
407,141
110,420

515,638
405,793
100,615

511,882
403,029
98,828

510,951
402,567
95,917

507,928
399,910
92,758

510,767
400,743
93,105

505,397
397,380
95,094

507,706
399,604
92,655

506,268
397,460
88,586

1,382
1,133
258

13 Time deposits in accounts of $100,000 or
m o r e ....................................................................
14
Negotiable CDs ..................................................
15
Other time deposits ...........................................

150,394
109,936
40,458

149,306
108,419
40,888

149,236
107,974
41,262

151,237
109,592
41,645

153,504
111,477
42,026

152,239
110,113
42,125

151,030
108,473
42,556

150,508
108,004
42,504

150,840
107,803
43,038

110
54
56

16 Loans sold outright to affiliates3 .......................
17
Commercial and industrial .............................
18
Other ......................................................................

2,711
1,783
928

2,733
1,839
893

2,738
1,838
900

2,708
1,801
907

2,725
1,825
900

2,748
1,850
898

2,756
1,856
901

2,849
1,948
900

2,724
1,818
905

19 Total loans (gross) and securities adjusted1-4
20 Total loans (gross) adjusted1 .............................
21 Dem and deposits adjusted2 ................................

126,976
104,883
28,081

125,329
103,338
24,909

123,896
102,208
24,838

123,052
101,360
26,244

121,183
99,522
24,972

122,610
100,988
25,194

121,063
99,563
25,946

121,857
100,058
27,502

120,534
98,854
23,906

175
65
-2 4 8

22 Time deposits in accounts of $100,000 or
m o r e ....................................................................
Negotiable CDs ..................................................
Other time deposits ...........................................

37,811
28,649
9,162

38,263
29,154
9,109

38,033
28,877
9,156

38,579
29,294
9,285

38,826
29,595
9,232

38,753
29,235
9,518

37,925
28,229
9,696

37,044
27,493
9,552

36,172
26,680
9,492

55

B anks with A ssets of $1 B illion or M ore

B anks in N ew Y ork C ity

23
24

55

1. Exclusive of loans and federal funds transactions with domestic commercial
3. Loans sold are those sold outright to a bank’s own foreign branches, non­
banks.
consolidated nonbank affiliates of the bank, the bank’s holding company (if not
2. All demand deposits except U.S. government and domestic banks less cash
a bank), and nonconsolidated nonbank subsidiaries of the holding company,
items in process of collection.
4. Excludes trading account securities.




A22

Domestic Financial Statistics □ March 1981

1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS

Domestic Classified Commercial and Industrial Loans

Millions of dollars
Outstanding

Net change during

1980

Industry classification
Oct. 29

1980

1981

Nov. 26

Dec. 31

Jan. 28

Feb. 25p

Q3

Q4

Adjust­
ment
bank1

1981
Dec.

Jan.

Feb .p

1 Durable goods m anufacturing............

23,335

24,088

24,676

24,378

24,424

783

1,164

587

-3 0 0

45

2 Nondurable goods manufacturing . . .
3
Food, liquor, and to b a c c o ..............
4 Textiles, apparel, and le a th e r ........
5
Petroleum refining ...........................
6 Chemicals and rubber ....................
7 Other nondurable goods ................

20,273
4,584
5,070
3,153
3,846
3,620

20,804
4,921
4,906
3,129
4,158
3,690

20,503
5,384
4,150
3,633
3,917
3,419

19,359
4,915
4,096
3,185
3,782
3,381

18,937
4,529
4,364
2,929
3,673
3,442

1,195
649
269
-2 8
30
275

970
1,033
-1,054
947
184
-1 4 0

-3 0 1
463
-7 5 6
504
-241
-271

-1,142
-4 6 6
-5 4
-4 4 8
-1 3 5
-3 9

-422
-386
268
-256
-109
61

-1 7 7

-316

-6 9 7
-4 4 7
-248
-2

-307
-2 4 2
-3 5 0
285

-5 7 3
-1 1 7
-1 3 6
-3 2 0

-4 7 2
-1 1 4
-8 7
-2 7 0

-42
394

159
286
103

8 Mining (including crude petroleum
and natural g a s ) ............................

14,716

15,338

16,427

16,251

15,935

199

2,471

9 T ra d e .......................................................
10 Commodity d e a le rs ..........................
11
Other wholesale ..............................
12 R e ta il...................................................

26,270
2,470
11,876
11,923

27,050
2,402
12,182
12,467

26,250
2,563
12,306
11,381

25,552
2,116
12,057
11,378

25,245
1,874
11,707
11,663

350
588
-9 4
-144

1,300
444
720
136

-801
161
124

13 Transportation, communication,
and other public utilities ............
14 T ransportation ..................................
15 C om m unication.................................
16 Other public u tilities........................

19,316
7,788
3,094
8,434

20,099
8,019
3,161
8,919

21,316
8,374
3,319
9,623

20,741
8,254
3,184
9,303

20,270
8,139
3,097
9,033

478
136
154
188

2,093
638
326
1,128

1,217
354
158
704

17 C onstruction..........................................
18 Services...................................................
19 All other2 ...............................................

5,924
21,530
15,634

5,992
22,160
16,146

5,993
22,853
16,586

5,950
23,247
15,816

6,109
23,533
15,919

60
1,014
403

-3 7
1,542
1,184

1
693
440

20 Total domestic loans ............................

146,998

154,604

151,295

150,371

4,483

10,687

2,926

21 M emo : Term loans (original maturity
more than 1 year) included in do­
mestic loans ..................................

76,912

81,745

81,794

0,147

2,241

5,209

2,789

78,956

1. Adjustment bank amounts represent accumulated adjustments originally
made to offset the cumulative effects of mergers. These adjustment amounts should
be added to outstanding data for any date in the year to establish comparability
with any date in the subsequent year. Changes shown have been adjusted for these
amounts.
2. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.




-

1,111

-3,648

-1
-3

-2
’ 341’
339

-1,647

N o t e . New series. The 134 large weekly reporting commercial banks with do­
mestic assets of $1 billion or more as of December 31, 1977, are included in this
series. The revised series is on a last-Wednesday-of-the-month basis. Partly esti­
mated historical data are available from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D .C ., 20551.

Deposits and Commercial Paper
1.31

A23

GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder

19792
1975
Dec.

1976
Dec.

1977
Dec.

1980

1978
Dec.
Sept.

Dec.

Mar.

June

Sept.

Dec.

1 All holders—Individuals, partnerships, and
corporations...........................................................

236.9

250.1

274.4

294.6

292.4

302.2

288.4

288.6

302.0

316.8

2
3
4
5
6

20.1
125.1
78.0
2.4
11.3

22.3
130.2
82.6
2.7
12.4

25.0
142.9
91.0
2.5
12.9

27.8
152.7
97.4
2.7
14.1

26.7
148.8
99.2
2.8
14.9

27.1
157.7
99.2
3.1
15.1

28.4
144.9
97.6
3.1
14.4

27.7
145.3
97.9
3.3
14.4

29.6
151.9
101.8
3.2
15.5

29.8
162.3
104.0
3.3
17.4

Financial business .........................................................
Nonfinancial b u sin ess...................................................
C o nsum er.......................................................................
F o re ig n ...........................................................................
O th e r...............................................................................

Weekly reporting banks
19793
1975
Dec.

1976
Dec.

1977
Dec.

Sept.
7 All holders—Individuals, partnerships, and
corporations...........................................................
8
9
10
11
12

Financial business .........................................................
Nonfinancial b u sin ess...................................................
C o n sum er.......................................................................
F o re ig n ...........................................................................
O th e r...............................................................................

Mar.

Dec.

June

Sept.

Dec.

124.4

128.5

139.1

147.0

132.7

139.3

133.6

133.9

140.6

147.4

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

18.5
76.3
34.6
2.4
7.4

19.8
79.0
38.2
2.5
7.5

19.7
69.1
33.7
2.8
7.4

20.1
74.1
34.3
3.0
7.8

20.1
69.1
34.2
3.0
7.2

20.2
69.2
33.9
3.1
7.5

21.2
72.4
36.0
3.1
7.9

21.6
77.7
36.3
3.1
8.7

1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 B u l l e t i n , p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the ola and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1.

1.32

1980

1978
Dec.

3. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See “Announcements,” p. 408 in the
May 1978 B u l l e t i n . Beginning in March 1979. demand deposit ownership esti­
mates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business. 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.

COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1980
Instrument

1977
Dec.

1978
Dec.

19791
Dec.

1981

1980
Dec.
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Commercial paper (seasonally adjusted)
1 All is s u e rs ...................................................

65.036

83,420

112,803

125,068

122,259

122,607

123,460

122,383

124,776

125,068

127,957

8,888
2,132

12,300
3,521

17,579
2,874

19,847
3,561

18.207
3,198

19.092
3.313

19.509
3,370

18,992
3,442

19,556
3,436

19,847
3.561

20,103
3,670

40,612
7,102
15,536

51,755
12,314
19,365

64,931
17,598
30,293

68,083
22,382
37,138

63,777
19,239
40,275

64.550
19,909
38,965

65,542
19,692
38,409

66,628
21,146
36,763

67,345
21,939
37,875

68,083
22,382
37,138

68,318
22,570
39,536

Financial companies2
2
3

Dealer-placed paper 3
Total .......................................................
Bank-related .........................................
Directly placed paper*

4 Total .......................................................
5 Bank-related .........................................
6 Nonfinancial companies5 ........................

Bankers dollar acceptances (not seasonally adjusted)
7 Total ...........................................................

25,450

33,700

45,321

54,744

54,334

54,486

55,774

56,610

55,226

54,744

54,465

10,434
8,915
1,519

8,579
7,653
927

9,865
8,327
1,538

10,564
8,963
1,601

9,764
8,603
1,161

9,644
8.544
1.100

10,275
9,004
1,270

11.317
9,808
1,509

10,236
8,837
1,399

10,564
8,963
1,601

9,371
7,951
1,420

954
362
13,700

1
664
24,456

704
1,382
33,370

776
1,791
41,614

310
1,899
42,361

277
1.841
42.724

499
1,820
43,179

566
1,915
42,813

523
1,852
42,616

776
1,791
41,614

0
1,771
43,323

6,378
5,863
13,209

8,574
7,586
17,540

10,270
9,640
25,411

11,776
12,712
30,257

12,109
12,401
29,824

11,861
12.582
30.043

11,731
12,991
31,052

12,254
13,445
30,911

11,774
13,670
29,782

11,776
12,712
30,257

11,903
12,816
29,746

H older

8 Accepting banks .......................................
9 Own bills ...............................................
10 Bills bought ...........................................
Federal Reserve Banks
11 Own account .........................................
12 Foreign correspondents ......................
13 O th e rs .........................................................
Basis

14. Imports into United States ....................
15 Exports from United States ..................
16 All o t h e r .....................................................

1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Institutions engaged primarily in activities such as, but not limited to, com­
mercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, and other business lending; insurance underwriting; and
other investment activities.




3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with inves­
tors.
5. Includes public utilities and firms engaged primarily in such activities as com­
munications. construction, manufacturing, mining, wholesale and retail trade,
transportation, and reserves.

A24
1.33

Domestic Financial Statistics □ March 1981
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective date

1980—Oct.

1 ..................
17 ..................
29 ..................
Nov. 6 ..................
1 7 ..................
2 1 ..................
2 6 ..................
Dec. 2 ..................
5 ..................

1.34

Rate

Effective Date

Rate

Month

Average
rate

Month

Average
rate

13.50
14.00
14.50
15.50
16.25
17.00
17.75
18.50
19.00

1980—Dec 10 ..................
16 ..................
19 ..................

20.00
21.00
21.50

1981—Jan.

20.50
20.00
19.50
19.00

1980—Jan............................
Feb...........................
M ar...........................
A pr...........................
May ........................
J u n e ........................
July ........................

15.25
15.63
18.31
19.77
16.57
12.63
11.48

1980—Aug...........................
Sept..........................
O ct............................
Nov...........................
Dec...........................

11.12
12.23
13.79
16.06
20.35

1981—Jan............................
Feb...........................

20.16
19.43

Feb.

2
9
3
19

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

TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 3-8, 1980
Size of loan (in thousands of dollars)
Item

All
1-24

25^9

50-99

100-499

1,000
and over

500-999

S hort -T erm C ommercial and
Industrial L oans
Am ount of loans (thousands of dollars) .........................
Number of loans ...................................................... ...........
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 ...........................................................

13,100,722
131,579
2.2
15.71
15.12-16.65

729,247
92,779
3.0
15.97
14.75-17.23

549,089
16,539
3.5
15.72
13.52-17.11

562,389
9,235
2.9
16.39
15.50-17.50

1,819,646
10,024
3.0
15.52
14.50-16.75

665,483
1,049
3.4
15.87
15.31-16.61

8,774,868
1,953
1.7
15.68
15.25-16.50

Percentage o f am ount o f loans
6 With floating rate ....................................................................
7 Made under commitment ....................................................
8 With no stated m a tu r ity ........................................................

50.5
45.7
25.2

25.0
25.1
14.9

27.9
22.3
12.0

40.7
35.3
17.4

52.1
46.4
24.3

68.3
65.6
31.0

53.0
48.0
27.1

1
2
3
4
5

L ong -T erm C ommercial and
Industrial L oans
Amount of loans (thousands of dollars) .........................
Number of loans ......................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 ...........................................................

3,152,110
17,989
46.3
15.07
14.50-15.62

306,233
15,060
48.3
15.42
14.93-16.65

571,615
2,245
34.4
15.29
14.75-15.50

171,411
245
40.6
15.20
14.50-16.25

2,102,851
439
49.6
14.95
14.50-15.50

Percentage o f am ount o f loans
14 With floating rate ...................................................................
15 Made under commitment ....................................................

70.1
58.1

39.3
29.0

29.5
25.1

72.3
70.2

85.5
70.3

9
10
11
12
13

C onstruction and
L and D evelopment L oans
16
17
18
19
20

Amount of loans (thousands of dollars) .........................
Number of loans ......................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 ...........................................................

1,072,203
24,383
13.4
15.31
14.00-16.65

105,341
13,527
9.4
15.23
14.04-16.99

242,030
6,586
5.0
14.64
13.10-15.50

167,557
2,637
19.4
14.74
14.00-14.75

230,726
1,413
10.0
15.24
14.00-17.00

326,549
221
18.0
16.16
15.50-17.00

21
22
23
24

Percentage o f am ount o f loans
With floating rate ...................................................................
Secured by real estate ..........................................................
Made under commitment ....................................................
With no stated m a tu rity ........................................................

44.4
81.9
60.9
16.5

22.7
84.3
48.7
4.9

8.8
98.2
60.9
26.9

45.6
96.7
21.5
3.1

47.9
89.8
78.2
35.8

74.7
56.0
73.0
5.8

Type o f construction
25 1- to 4-family .............................................................................
26 M ultifam ily.................................................................................
27 N on resid en tial..........................................................................

40.9
8.2
50.9

75.0
2.2
22.7

66.9
10.0
23.1

57.7
3.6
38.7

24.9
8.9
66.2

13.3
10.7
76.0

All
sizes

10-24

1-9

25-49

50-99

250
and over

100-249

L oans to F armers
28 Amount of loans (thousands of dollars) .........................
29 Number of loans ......................................................................
30 Weighted-average maturity (months) .............................
31 Weighted-average interest rate (percent per annum) .
32
Interquartile range1 ...........................................................

1,301,641
72,123
7.3
15.46
14.49-16.64

191,079
46,721
6.7
15.10
14.30-15.97

217,452
14,605
7.1
15.02
14.32-15.95

190,952
5,800
5.6
15.22
14.04-16.21

15.55
15.00-16.10

By purpose o f loan
Feeder livestock ......................................................................
Other livestock ........................................................................
Other current operating expenses ....................................
Farm machinery and e q u ip m en t........................................
O th e r ............................................................................................

15.45
15.35
15.44
15.13
15.75

15.10
15.19
15.17
15.01
14.91

15.09
15.96
15.14
14.81
13.90

14.93
14.84
15.33
15.44
16.06

15.23
15.46
15.88
15.42
15.79

33
34
35
36
37

1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.




196,075
2,838

6.6

275,324
1,789
10.6
15.74
14.48-16.64

230,759
370
5.8
15.96
14.93-17.05

15.79
15.30
15.97

16.32

(2)
15.21

(2)

(2)

15.44

17.25

N ote . For more detail, see the Board’s E .2(111) statistical release,

Securities Markets
1.35

A25

INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1980
Instrument

1978

1979

1981, week ending

1981

1980
Nov.

Dec.

Jan.

Feb.

Jan. 30

Feb. 6

Feb. 13

Feb. 20

Feb. 27

M oney M arket R ates
1 Federal funds1 2 ...............................................
Commercial paper3-4
2
1 -m o n th ..........................................................
3
3 -m o n th ...........................................................
4
6 -m o n th ...........................................................
Finance paper, directly placed3-4
5
1 -m o n th ..........................................................
6
3 -m o n th ...........................................................
7
6 -m o n th ...........................................................
Bankers acceptances4-5
8
3 -m o n th ...........................................................
9
6 -m o n th ...........................................................
Certificates of deposit, secondary market6
10
1 -m o n th ...........................................................
11
3 -m o n th ..........................................................
12
6 -m o n th ..........................................................
13 Eurodollar deposits, 3-month2 ..................
U .S. Treasury bills4
Secondary market7
14
3 -m o n th ......................................................
15
6 -m o n th ......................................................
16
1-year ..........................................................
Auction average8
17
3 -m o n th ......................................................
18
6 -m o n th ......................................................
19
1-year ...........................................................

7.93

11.19

13.36

15.85

18.90

19.08

15.93

18.12

17.19

16.51

15.81

14.96

7.76
7.94
7.99

10.86
10.97
10.91

12.76
12.66
12.29

15.23
15.18
14.73

18.95
18.07
16.49

17.73
16.58
15.10

15.81
15.49
14.87

17.07
16.38
15.02

16.47
15.85
14.90

16.34
16.02
15.20

15.81
15.54
15.02

14.72
14.68
14.45

7.73
7.80
7.78

10.78
10.47
10.25

12.44
11.49
11.28

14.87
13.14
13.07

17.87
15.00
14.78

16.97
14.49
14.09

15.52
14.45
14.05

16.71
14.80
14.24

16.17
14.67
14.14

16.15
14.77
14.27

15.64
14.69
14.31

14.29
13.80
13.60

8.11
n.a.

11.04
n.a.

12.78
n.a.

15.34
n.a.

17.96
n.a.

16.62
14.88

15.54
14.89

16.32
14.91

15.86
14.88

16.18
15.28

15.40
14.95

14.83
14.55

7.88
8.22
8.61
8.78

11.03
11.22
11.44
11.96

12.91
13.07
12.99
14.00

15.39
15.68
15.36
16.46

19.24
18.65
17.10
19.47

17.99
17.19
15.92
18.07

16.11
16.14
16.00
17.18

17.43
17.03
15.92
18.56

16.63
16.38
15.81
17.23

16.79
16.71
16.43
17.16

16.23
16.31
16.33
18.11

14.96
15.31
15.59
16.59

7.19
7.58
7.74

10.07
10.06
9.75

11.43
11.37
10.89

13.73
13.50
12.66

15.49
14.64
13.23

15.02
14.08
12.62

14.79
14.05
12.99

15.01
14.01
12.68

14.90
13.92
12.84

15.51
14.63
13.31

14.68
14.00
12.98

14.19
13.76
12.89

7.221
7.572
7.678

10.041
10.017
9.817

11.506
11.374
10.748

13.888
13.612
12.219

15.661
14.770
13,261

14.724
13.883
12.554

14.905
14.134
12.801

15.199
14.121
13.033

14.657
13.735

15.397
14.430

15.464
14.760

14.103
13.611
12.801

8.34
8.34

10.67
10.12

12.05
11.77

14.15
13.51

14.88
14.08

14.08
13.26

14.57
13.92

14.41
13.67

9.71
9.52
9.48
9.44
9.33
9.29

11.55
11.48
11.43
11.46
11.39
11.30

13.31
12.83
12.71
12.68
12.44
12.37

13.65
13.25
13.00
12.84
12.49
12.40

13.01
12.77
12.66
12.57
12.29
12.14

13.65
13.41
13.28
13.19
12.98
12.80

13.41
13.13
13.00
12.95
12.72
12.60

14.92
14.22
13.95
13.86
13.59
13.45
13.39
13.15
12.99

14.50
13.81

8.29
8.32
8.36
8.41
8.48
8.49

14.24
13.39
13.25
13.13
12.89
12.78
12.74
12.48
12.32

13.53
13.32
13.24
13.16
12.97
12.77

14.50
14.02
14.00
13.80
13.63
13.45
13.32
13.10
12.89

C apital M arket R ates

20
21
22
23
24
25
26
27
28

U.S. Treasury notes and bonds9
Constant maturities10
1-year ...........................................................
2-year ..........................................................
2^ -year11 ..................................................
3-year ...........................................................
5-year ...........................................................
7-year ...........................................................
10-year ........................................................
2 0 -y ea r........................................................
3 0 -y ea r........................................................

29

Com posite12
Over 10 years (long-term) ..................

7.89

8.74

10.81

11.83

11.89

11.65

12.23

11.80

12.02

12.41

12.21

12.32

State and local notes and bonds
M oody’s series13
30
A a a ...............................................................
31
B a a ...............................................................
32
B o n d B u y er series14 ..................................

5.52
6.27
6.03

5.92
6.73
6.52

7.85
9.01
8.59

8.71
9.74
9.56

9.44
10.64
10.11

8.98
9.90
9.66

9.46
10.15
10.10

9.30
9.90
9.91

9.30
10.00
9.90

9.40
10.20
9.99

9.50
10.20
10.22

9.65
10.20
10.27

9.07
8.73
8.92
9.12
9.45

10.12
9.63
9.94
10.20
10.69

12.75
11.94
12.50
12.89
13.67

13.64
12.97
13.34
13.59
14.64

14.04
13.21
13.78
14.03
15.14

13.80
12.81
13.52
13.83
15.03

14.22
13.35
13.89
14.27
15.37

13.93
12.98
13.62
13.97
15.15

14.05
13.07
13.69
14.12
15.32

14.23
13.41
13.87
14.22
15.41

14.33
13.51
14.04
14.40
15.36

14.30
13.45
14.00
14.35
15.39

8.96
8.97

10.03
10.02

12.74
12.70

13.85
13.91

14.51
14.38

14.12
14.17

14.90
14.58

14.06
14.08

14.30

14.58

14.57

14.90
14.85

8.25
5.28

9.07
5.46

10.57
5.25

11.35
4.63

11.94
4.74

11.64
4.76

11.83
5.00

11.54
4.84

11.80
5.00

11.84
5.00

11.92
5.00

11.78
5.02

Corporate bonds
Seasoned issues15
All industries ...........................................
A a a ...............................................................
A a .................................................................
A ....................................................................
B a a ...............................................................
Aaa utility bonds16
38
New i s s u e .................................................
39
Recently offered i s s u e s .........................

33
34
35
36
37

40
41

M emo : Dividend/price ratio17
Preferred stocks ...........................................
Common stocks ...........................................

1. Weekly and monthly figures are averages of all calendar days, where the rate
for a weekend or holiday is taken to be the rate prevailing on the preceding business
day. The daily rate is the average of the rates on a given day weighted by the
volume of transactions at these rates.
2. Weekly figures are statement week averages—that is, averages for the week
ending Wednesday.
3. Beginning November 1977, unweighted average of offering rates quoted by
at least five dealers (in the case of commercial paper), or finance companies (in
the case of finance paper). Previously, most representative rate quoted by those
dealers and finance companies. Before November 1979, maturities for data shown
are 30-59 days, 90-119 days, and 120-179 days for commercial paper; and 30-59
days, 90-119 days, and 150-179 days for finance paper.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. Rates are recorded in the week in which bills are issued.
9. Yields (not compounded) are based on closing bid prices quoted by at least
five dealers.
10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.




11. Each monthly figure is an average of only five business days near the end
of the month. The rate for each month was used to determine the maximum interest
rate payable in the following month on small saver certificates, until June 2, 1980.
Each weekly figure is calculated on a biweekly basis and is the average of five
business days ending on the Monday following the calendar week. Beginning June
2, the biweekly rate is used to determine the maximum interest rate payable in the
following two-week period on small saver certificates. (See table 1.16.)
12. Unweighted averages for all outstanding notes and bonds neither due nor
callable in less than 10 years, including several very low yielding “flower” bonds.
13. General obligations only, based on figures for Thursday, from Moody’s
Investors Service.
14. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
15. Daily figures from Moody’s Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. Issues included are long-term (20 years
or more). New-issue yields are based on quotations on date of offering; those on
recently offered issues (included only for first 4 weeks after termination of under­
writer price restrictions), on Friday close-of-business quotations.
17. Standard and Poor’s corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one trans­
portation. Common stock ratios on the 500 stocks in the price index.

A26
1.36

Domestic Financial Statistics □ March 1981
STOCK MARKET

Selected Statistics
1980

Indicator

1978

1981

1979

Aug.

Sept

Dec.

Jan.

Prices and trading (averages of daily figures)
Com mon stock prices

1 New York Stock Exchange (Dec. 31, 1965 = 50)
2 Industrial .................................................................
3 Transportation.........................................................
4 U tility .......................................................................
5 Finance .....................................................................
6 Standard & Poor’s Corporation (1941-43 = 10)1 .
7 American Stock Exchange (Aug. 31, 1973 = 100)

53.76
58.30
43.25
39.23
56.74
96.11
144.56

55.67
61.82
45.20
36.46
58.65
98.34
186.56

68.06
78.64
60.52
37.35
64.28
118.71
300.94

70.87
82.15
62.48
38.18
67.22
123.50
321.87

73.12
84.92
65.89
38.77
69.33
126.49
337.01

75.17
88.00
70.76
38.44
68.29
130.22
350.08

78.15
92.32
77.22
38.35
67.21
135.65
349.97

76.69
90.37
75.74
37.84
67.46
133.48
347.56

76.24
89.23
74.43
38.53
70.04
132.97
344.21

73.52
85.74
72.76
37.59
68.48
128.40
338.28

28,591
3,622

32,233
4,182

44,867
6,377

45,984
6,452

50,397
7,880

44,860
7,087

54,895
7,852

46,620
6,410

45,500
6,024

42,963
4,816

Volume o f trading (thousands o f shares)

8 New York Stock Exchange ......................................
9 American Stock Exchange ......................................

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers2

11,035

11,619

14,721

12,007

12,731

13,293

14,363

14,721

14,242

11 Margin stock3 ..................................................
12 Convertible b o n d s ..........................................
13 Subscription issues ........................................

10,830
205
1

11,450
167
2

14,500
219
2

11,800
204
3

12,520
208
3

13,080
211
2

14,140
220
3

14,500
219
2

14,020
221
1

835
2,510

1,105
4,060

1,695
4,925

1,850
5,680

n .a.

Free credit balances at brokers4

14 M argin-account..............................................
15 C ash-account..................................................

2,105'
6,070'

l,950c
5,500c

2,120c
5,590c

2,105
6,070'

2,065
5,655

Margin-account debt at brokers (percentage distribution, end of period)
16 Total ...............................................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

33.0
28.0
18.0
10.0
6.0
5.0

16.0
29.0
27.0
14.0
8.0
7.0

14.0
30.0
25.0
14.0
9.0
8.0

11.0
25.0
30.0
16.0
10.0
8.0

13.0
28.0
26.0
15.0
10.0
8.0

13.0
29.0
25.0
15.0
10.0
8.0

13.0
18.0
31.0
18.0
11.0
9.0

14.0
30.0
25.0
14.0
9.0
8.0

20.0
30.0
22.0
13.0
8.0
7.0

By equity class (in percent)5

17
18
19
20
21
22

Under 4 0 .........................................................................
40-49 ...............................................................................
50-59 ...............................................................................
60-69 ...............................................................................
70-79 ...............................................................................
80 or more .....................................................................

n .a.

\

Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6 ..........................

13,092

16,150

21,690

18,350

19,283

19,929

21,600

21,690

21,686

41.3

44.2

47.8

48.2

49.0

46.8

46.5

47.8

47.0

45.1
13.6

47.0
8.8

44.4
7.7

44.6
7.0

43.4
7.6

46.2
7.0

46.8
6.7

44.4
7.7

43.9
9.1

t
1
n .a.
1

Distribution by equity status (percent)

24 Net credit status ...........................................................
Debt status, equity of
25 60 percent or more ..................................................
26 Less than 60 p e rc e n t.................................................

1

Margin requirements (percent of market value and effective date)7

27 Margin sto ck s.................................................................
28 Convertible b o n d s .........................................................
29 Short sales .....................................................................

Mar. 11, 1968

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or related
equity instruments and secured at least in part by stock. Credit extended is end-ofmonth data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally, Regu­
lations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.




Jan. 3, 1974
50
50
50

5. Each customer’s equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. 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 pro­
ceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­
scribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term “margin stocks” is defined in the corresponding
regulation.

Thrift Institutions
1.37

SAVINGS INSTITUTIONS

A ll

Selected Assets and Liabilities

M illions o f dollars, end o f period
1980
Account

1978

1981

1979
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.P

Savings and loan associations
1 Assets .............................................................

523,542

578,962

590,725

592,931

594,397

596,620

603,295

609,320

617,773

623,939

629,829'

631,046

2 Mortgages .....................................................
3 Cash and investment securities1 ..............
4 Other .............................................................

432,808
44,884
45,850

475,688
46,341
56,933

480,032
50,373
60,320

479,956
52,466
60,509

481,042
52,408
60,947

482,839
52,165
61,616

487,036
53,336
62,923

491,895
53,435
63,990

496,495
56,146
65,132

499,973
57,302
66,664

502,812'
57,572'
69,445'

504,078
57,383
69,585

523,542

578,962

590,725

592,931

594,397

596,620

603,295

609,320

617,773

623,939

629,829'

631,046

Savings c a p ita l...............................................
Borrowed money ........................................
FHLBB .....................................................
Other .........................................................
Loans in p ro c e s s ..........................................
Other .............................................................

430,953
42,907
31,990
10,917
10,721
9,904

470,004
55,232
40,441
14,791
9,582
11,506

478,400
57,253
42,724
14,529
7,725
14,143

481,411
55,199
41,529
13,670
7,185
16,141

486,680
54,796
40,613
14,183
7,031
12,966

488,896
41,239
39,882
13,579
7,112
14,364

497,403
55,396
41,005
14.391
7,540
16,190

496,991
58,418
42,547
15,871
8,243
12,776

500,861
60,727
44,325
16,402
8,654
14,502

503,365
62,067
45,505
16,562
8,853
16,433

510,959'
64,491'
47,045'
17,446'
8,783'
12,227'

512,858
62,674
46,585
16,098
8,321
14,047

12 Net worth2 .....................................................

29,057

32,638

33,204

32,995

32,924

32,787

32,766

32,892

33,029

33,221

33,319'

33,137

13 M emo : Mortgage loan com­
mitments outstanding3 ........................

18,911

16,007

14,195

13,931

15,368

18,020

20,278

20,311

19,077

17,979

16,102'

15,859

5 Liabilities and net worth ............................
6
7
8
9
10
11

Mutual savings banks4
14 Assets .............................................................

158,174

163,405

165,366

166,340

166,982

167,959

168,752

169,409

170,432

171,126

171,594

95,157
7,195

98,908
9,253

99,045
10,187

99,163
10,543

99,176
11,148

99,301
11,390

99,289
11,122

99,306
11,415

99,523
11,382

99,677
11,477

99,891
11,770

4,959
3,333
39,732
3,665
4,131

7,658
2,930
37,086
3,156
4,412

7,548
2,791
37,801
3,405
4,588

7,527
2,727
38,246
3,588
4,547

7,483
2,706
38,276
3,561
4,631

7,796
2,702
38,863
3,260
4,648

8,079
2,709
39,327
3,456
4,770

8,434
2,728
39,609
3,153
4,764

8,622
2,754
39,720
3,592
4,839

8,715
2,736
39,888
3,717
4,916

8,891
2.379
39,349
4,330
4,983

22 Liabilities.......................................................

158,174

163,405

165,366

166,340

166,982

167,959

168,752

169,409

170,432

171,126

171,594

23
24
25
26
27
28
29
30

142,701
141,170
71.816
69,354
1,531
4,565
10,907

146,006
144,070
61,123
82,947
1,936
5,873
11,525

145,821
143,765
54,247
89,517
2,056
7,916
11,629

146,637
144,646
54,669
89,977
1,990
8,161
11,542

148,606
146,416
56,388
90,028
2,190
6,898
11,478

149,580
147,408
57,737
89,671
2,172
6,964
11,416

150,187
148,018
58,191
89,827
2,169
7,211
11,353

151,765
149,395
58,658
90,736
2,370
6,299
11,344

151,998
149,797
57,651
92,146
2,200
7,117
11,317

152,133
150,109
56,256
93,853
2,042
7,644
11,349

153,555
151.450
53,955
97.494
2.105
6,665
11.374

4,400

3,182

2,097

1,883

1,898

1,939

1,849

1,883

1,817

1,682

1.476

15
16
17
18
19
20
21

Loans
Mortgage ...................................................
Other .........................................................
Securities
U.S. government5 ..................................
State and local government ..................
Corporate and other6 ............................
Cash ...............................................................
Other a s s e ts ...................................................

D ep o sits.........................................................
Regular7 .....................................................
Ordinary savings..................................
Time and o t h e r ....................................
Other .........................................................
Other liabilities.............................................
General reserve accounts ..........................
M emo : Mortgage loan com­
mitments outstanding8 ........................

n .a.

Life insurance companies
31 Assets .............................................................

389,924

432,282

442,932

447,020

450,858

455,759

459,362

464,483

468,057

473,529

476,190

Securities
Government .............................................
United States9 ......................................
State and local ....................................
Foreign10 ...............................................
B usiness.....................................................
B o n d s .....................................................
Stocks .....................................................
Mortgages .....................................................
Real e s ta te .....................................................
Policy loans ...................................................
Other a s s e ts ...................................................

20,009
4,822
6,402
8,785
198,105
162,587
35,518
106,167
11,764
30,146
23,733

0,338
4,888
6,428
9,022
222,332
178,371
39,757
118,421
13,007
34,825
27,563

20,470
5,059
6,351
9,060
222,175
182,750
39,425
123,587
13,696
38,166
24,838

20,529
5,107
6,352
9,070
223,556
183,356
40,200
124,563
13,981
38,890
25,501

20,395
4,990
6,349
9.056
224,874
184,329
40,545
125,455
14,085
39,354
26.695

20,736
5,325
6,361
9,050
228,645
186,385
42,260
126,461
14,164
39,649
26,104

20,833
5,386
6,421
9,026
230,477
187,839
42,638
127,357
14,184
39,925
26,586

20,853
5,361
6,474
9,018
233,652
189,586
44,066
128,089
14,460
40,258
27,171

20,942
5,390
6,484
9,068
236,115
191,229
44,886
128,977
14,702
40,548
26,765

21,204
5,568
6,568
9,068
239,150
191,753
47,397
129,878
15,183
40.878
27,236

21,453
5,753
6.682
9,018
238,048
191.090
46,958
131,145
15.247
41,411
28,836

32
33
34
35
36
37
38
39
40
41
42

n .a.

Credit unions
43 Total assets/liabilities and
capital.....................................................

62,348

65,854

65,190

66,103

68,102

68,429

69,553

70,515

70,702

71,335

71,709

70,754

44
45
46
47
48
49
50
51

34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715

35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702

35,834
29,356
50,344
27,119
23,225
56,338
30,851
25,487

36,341
29,762
49,469
26,550
22,919
57,197
31,403
25,794

37,555
30,547
48,172
25,773
22,399
59,310
32,764
26,546

37,573
30,856
47,829
25,435
22,394
60,574
33,472
27,102

38,168
31,385
47,884
25,401
22,483
61,403
33,964
27,439

39,219
31,296
47,211
25,381
21,830
63,728
35,961
27,767

39,155
31,547
47,221
25,288
21,933
63,957
36,030
27,927

39,428
31,907
47,299
25,273
22,026
64,304
36,183
28,121

39.801
31,908
47,774
25,627
22,147
64,399
36,348
28,051

39,142
31,612
47,309
25,272
22,037
63,874
35.915
27,959

F e d e ra l...........................................................
State ...............................................................
Loans outstanding ......................................
F e d e ra l.......................................................
State ...........................................................
Savings...........................................................
Federal (shares) ......................................
State (shares and deposits) ....................

For notes see bottom of page A28.




A28

Domestic Financial Statistics □ March 1981

1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation

Fiscal
year
1978

Fiscal
year
1979

Fiscal
year
1980

1979

1980

H2

HI

1980
H2

Nov.

1981
Dec.

Jan.

U.S. budget

1 Receipts1 .........................................................
2 Outlays1 2 ......................................................
3 Surplus, or deficit( - ) ................................
4 Trust fu n d s ................................................
5 Federal funds3 ..........................................

401,997
450,804
-48,807
12,693
-61,532

465,940
493,635
-27,694
18,335
-46,069

520,050
579,613
-59,563
8,791
-67,752

233,952
263,004
-29,052
9,679
-38,773

270,864
289,905
-19,041
4,383
-23,418

262,152
310,972
-48,821
-2,551
-46,306

39,175
48,049
-8,8 7 4
-3,049
-5,825

48,903
56,202
-7,2 9 9
5,661
-12,960

52,214
59,099
-6 ,8 8 4
-3 ,4 3 4
-3,451

-10,661
302

-13,261
793

-14,549
303

-5,909
765

-7,735
-5 2 2

-7,552
376

-1,358
-4 6 6

-1,033
463

-9 6 0
-4 9 4

-59,166

-40,162

-73,808

-34,197

-27,298

-55,998

-10,698

-7,869

-8 ,3 3 9

59,106

33,641

70,515

31,320

24,435

54,764

9,231

13,667

6,772

-3,023
3,083

-4 0 8
6,929

-355
3,648

3,059
-1 8 2

-3,482
6,345

-6,730
7,964

4,077
-2,610

-10,485
4,686

2,252
-6 8 5

22,444
16,647
5,797

24,176
6,489
17,687

20,990
4,102
16,888

15,924
4,075
11,849

14,092
3,199
10,893

12,305
3,062
9,243

7,226
2,435
4,791

12,305
3,062
9,243

13,917
3,038
10,879

Off-budget entities (surplus, or deficit

6 Federal Financing Bank o u tla y s ................
7 Other4 ............................................................
U.S. budget plus off-budget, including
Federal Financing Bank

8 Surplus, or deficit ( - ) ................................
Source or financing
9 Borrowing from the public ....................
10 Cash and monetary assets (decrease, or
increase ( - ))^ ..................................
11
Other6 .........................................................
M em o :

12 Treasury operating balance (level, end of
period) ..................................................
13 Federal Reserve Banks ..........................
14 Tax and loan accounts ............................

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual’s tax liability, formerly treated as income tax refunds, are classified as outlays
retroactive to January 1976.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­
classified from an off-budget agency to an on-budget agency in the Department of
Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving
Fund; and Rural Telephone Bank.
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.

6.
Includes accrued interest payable to the public; allocations of special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) and
asset accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
So u r c e .

“Monthly Treasury Statement of Receipts and Outlays of the U.S.

Government,” Treasury Bulletin, and the Budget o f the United States Government,
Fiscal Year 1981.

NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are included in “other
assets.”
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in “Corporate and other.”
6. Includes securities of foreign governments and international organizations
and, prior to April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guar­
anteed, which are shown in the table under “Business” securities.




10.
Issues of foreign governments and their subdivisions and bonds of the In­
ternational Bank for Reconstruction and Development.
N o t e . Savings and loan associations: Estimates by the FHLBB for all associations
in the United States. Data are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differ­
ences between market and book values are not made on each item separately but
are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.

Federal Finance
1.39

A29

U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type

Fiscal
year
1978

Fiscal
year
1979

Fiscal
year
1980

1980

1979

1980

H2

HI

H2

Nov.

1981
Jan.

Dec.

R e c e ip t s

1 All sources1 .....................................................

401,997

465,955

520,050

233,952

270,864

262,152

39,175

48,903

52,214

2 Individual income taxes, net ......................
3 W ithheld.....................................................
4
Presidential Election Campaign Fund ..
5 N onwithheld...............................................
6
Refunds1 .....................................................
Corporation income taxes
7
Gross receipts ...........................................
8 R efunds.......................................................
9 Social insurance taxes and contributions,
net ...........................................................
10 Payroll employment taxes and
contributions2 ....................................
11
Self-employment taxes and
contributions3 ....................................
12 Unemployment insurance ......................
13 Other net receipts4 ..................................

180,988
165,215
39
47,804
32,070

217,841
195,295
36
56,215
33,705

244,069
223,763
39
63,746
43,479

115,488
105,764
3
12,355
2,634

119,988
110,394
34
49,707
40,147

131,962
120,924
4
14,592
3,559

20,851
20,379
1
673
201

23,725
22,844
0
1,150
269

30,964
20,896
1
10,121
54

65,380
5,428

71,448
5,771

72,380
7,780

29,169
3,306

43,434
4,064

28,579
4,518

1,774
771

10,155
768

2,826
667

123,410

141,591

160,747

71,031

86,597

77,262

13,242

11,078

14,363

99,626

115,041

133,042

60,562

69,077

66,831

11,189

10,268

12,533

4,267
13,850
5,668

5,034
15,387
6,130

5,723
15,336
6,646

417
6,899
3,149

5,535
8,690
3,294

188
6,742
3,502

0
1,499
554

0
224
586

426
773
631

18,376
6,573
5,285
7,413

18,745
7,439
5,411
9,252

24,329
7,174
6,389
12,741

9,675
3,741
2,900
5,254

11,383
3,443
3,091
6,993

15,332
3,717
3,499
6,318

2,080
546
543
909

2,391
632
517
1,174

2,523
635
535
1,035

18 All types1’6 .....................................................

450,804

493,635

579,613

263,004

289,905

310,972

48,049

56,202

59,099

19
20
21
22
23
24

National defense ...........................................
International affairs ....................................
General science, space, and technology ..
E nergy.............................................................
Natural resources and en v iro n m en t..........
A griculture.....................................................

105,186
5,922
4,742
5,861
10,925
7,731

117,681
6,091
5,041
6,856
12,091
6,238

135,856
10,733
5,722
6,313
13,812
4,762

62,002
4,617
3,299
3,281
7,350
1,709

69,132
4,602
3,150
3,126
6,668
3,193

72,457
5,430
3,205
3,997
7,722
1,892

11,812
674
549
627
1,086
878

12,605
1,249
618
845
1,325
1,355

12,682
396
440
915
1,134
2,984

Commerce and housing credit ..................
T ransportation...............................................
Community and regional development . . .
Education, training, employment, social
services ...................................................
29 H e a lth .............................................................
30 Income security1-6 .........................................

3,324
15,445
11,039

2,565
17,459
9,482

7,782
21,120
10,068

3,002
10,298
4,855

3,878
9,582
5,302

3,163
11,547
5,370

-3 5 7
1,808
847

1,051
1,870
872

988
3,810
867

26,463
43,676
146,180

29,685
49,614
160,159

30,767
58,165
193,100

14,579
26,492
85,967

16,686
29,299
94,605

15,221
31,263
107,912

2,223
4,891
17,216

2,461
5,716
18,944

3,029
5,510
19,299

18,974
3,802
3,737
9,601
43,966
-15,772

19,928
4,153
4,153
8,372
52,556
-18,489

21,183
4,570
4,505
8,584
64,504
-21,933

10,113
2,174
2,103
4,286
29,045
-12,164

9,758
2,291
2,422
3,940
32,658
-10,387

11,731
2,299
2,432
4,191
35,909
-14,769

719
348
356
210
5,338
-1,285

3,032
382
464
26
10,805
-7,4 0 0

1,923
383
356
1,293
3,822
-7 3 2

14
15
16
17

Excise taxes ...................................................
Customs deposits...........................................
Estate and gift ta x e s ....................................
Miscellaneous receipts5 ..............................
O utlays

25
26
27
28

31
32
33
34
35
36

Veterans benefits and services ..................
Administration of justice ............................
General governm ent....................................
General-purpose fiscal assistance ..............
Interest7 .........................................................
Undistributed offsetting receipts7 8 ..........

1.Effective June 1978, earned income credit payments in excess of an individual's
tax liability, formerly treated as income tax refunds, are classified as outlays ret­
roactive to January 1976.
2.Old-age, disability, and hospital insurance, and railroad retirement accounts.
3.Old-age, disability, and hospital insurance.
4.Supplementary medical insurance premiums, federal employee retirement con­
tributions, and Civil Service retirement and disability fund.
5.Deposits of earnings by Federal Reserve Banks and other miscellaneous re­
ceipts.
6.Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­




classified from an off-budget agency to an on-budget agency in the Department of
Labor.
7.Effective September 1976, “Interest” and “Undistributed offsetting receipts”
reflect the accounting conversion from an accrual basis to a cash basis for the
interest on special issues for U.S. government accounts.
8.Consists of interest received by trust funds, rents and royalties on the Outer
Continental Shelf, and U.S. government contributions for employee retirement.
S o u r c e . “Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government” and the Budget o f the U.S. Government, Fiscal Year 1981.

A30

Domestic Financial Statistics □ March 1981

1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1979

1978

1980

Item
Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

1 Federal debt outstanding .....................................................

797.7

804.6

812.2

833.8

852.2

870.4

884.4

914.3

936.7

2 Public debt securities ...........................................................
3
Held by p u b lic ...................................................................
4
Held by agencies...............................................................

789.2
619.2
170.0

796.8
630.5
166.3

804.9
626.4
178.5

826.5
638.8
187.7

845.1
658.0
187.1

863.5
677.1
186.3

877.6
682.7
194.9

907.7
710.0
197.7

930.2
737.7
192.5

5 Agency securities .................................................................
6 Held by p u b lic ...................................................................
7
Held by ag en cies...............................................................

8.5
7.0
1.5

7.8
6.3
1.5

7.3
5.9
1.5

7.2
5.8
1.5

7.1
5.6
1.5

7.0
5.5
1.5

6.8
5.3
1.5

6.6
5.1
1.5

6.5
5.0
1.5

8 Debt subject to statutory lim it.............................................

790.3

797.9

806.0

827.6

846.2

864.5

878.7

908.7

931.2

9 Public debt securities ...........................................................
10 Other debt1 ...........................................................................

788.6
1.7

796.2
1.7

804.3
1.7

825.9
1.7

844.5
1.7

862.8
1.7

877.0
1.7

907.1
1.6

929.6
1.6

11 M e m o : Statutory debt lim it.................................................

798.0

798.0

830.0

830.0

879.0

879.0

925.0

925.0

935.1

1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.

1.41

GROSS PUBLIC DEBT OF U.S. TREASURY

N ote.

Data from Treasury Bulletin ( U .S . Treasury Department),

Types and Ownership

Billions of dollars, end of period
1980
Type and holder

1976

1977

1978

Oct.
1 Total gross public d e b t.........................................................

1981

1979
Nov.

Dec.

Jan.

Feb.

653.5

718.9

789.0'

845.0'

908.2

9113.8

930.2

934.1

950.5

652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
20.8'
1.5r
72.3
129.7

715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
21.0'
1.2'
77.0
139.8

782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5

844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5

906.9
599.4
202.3
311.9
85.2
307.5

909.4
605.4
208.7
311.1
85.5
304.0

928.9
623.2
216.1
321.6
85.4
305.7

929.8
628.5
220.4
321.2
86.9
301.3

946.5
642.9
229.0
324.5
89.4
303.5

23.9
24.8
18.4
6.4
73.0
185.7

2.4.0
24.5
18.1
6.4
72.8
182.4

23.8
24.0
17.6
6.4
72.5
185.1

23.7
23.8
17.5
6.4
71.4
182.2

23.6
24.0
17.5
6.4
70.7
185.0

3.7

6.8

1.2

4.4

1.3

4.2

4.0

By type

2 Interest-bearing debt ...........................................................
3 M arketable.............................................................................
4
B ills .....................................................................................
5
N o te s...................................................................................
6
Bonds .................................................................................
7 Nonmarketable 1 ...................................................................
8 Convertible bonds 2 .........................................................
9
State and local government series ................................
10 Foreign issues 3 .................................................................
11
G overnm ent...................................................................
12
Public .............................................................................
13 Savings bonds and notes .................................................
14 Government account series 4 ........................................
15 Non-interest-bearing debt ...................................................

1.1

1.2'

By holder 5

U.S. government agencies and trust f u n d s ......................
Federal Reserve Banks .......................................................
Private investors ...................................................................
Commercial banks ...............................................................
Mutual savings banks ...........................................................
Insurance companies ...........................................................
Other com panies...................................................................
State and local governments ...............................................

147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6

154.8
102.8'
461.3
101.4
5.9
15.5
22.7
54.8

170.0
110.6'
508.6
94.7'
5.0
14.9
20.5'
70.1'

187.1
117.5
540.5
97.0
4.2'
14.4
23.9
68.2'

193.4
121.5
593.3
103.4
5.5
15.3
25.3
73.1

189.7
120.4
60.3.2
101.8
5.6
1.5.4
24.8
74.6

192.5
121.3
616.4
104.7
5.8
15.2
24.6
74.7

Individuals
24 Savings bonds ...................................................................
25
Other secu rities.................................................................
26 Foreign and international 6 .................................................
27 Other miscellaneous investors 7 .........................................

72.0
28.8
78.1
38.9

76.7
28.6
109.6
45.9'

80.7
30.1'
137.8
58.2

79.9
34.2
123.8
94.8'

73.0
49.9
127.7'
120.1'

72.5
52.1'
132.6
123.4

72.5
56.7
134.3
127.9

16
17
18
19
20
21
22
23

1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retire­
ment bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner’s option for 1Vi percent, 5-year mar­
ketable Treasury notes. Convertible bonds that have been so exchanged are re­
moved from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




n.a.

n.a.

6. Consists of investments of foreign balances and international accounts in the
United States. Beginning with July 1974, the figures exclude non-interest-bearing
notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pen­
sion trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
N o t e . Gross public debt excludes guaranteed agency securities and, beginning
in July 1974, includes Federal Financing Bank security issues.
Data by type of security from M onthly Statement o f the Public D ebt o f the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.

Federal Finance
1.42

U.S. GOVERNMENT MARKETABLE SECURITIES

A31

Ownership, by maturity

Par value; millions of dollars, end of period
1980

1980
Type of holder

1978

1979

1978
Nov.

1979
Nov.

Dec.

All maturities

Dec.

1 to 5 years

1 All holders .............................................................................................

487,546

530,731

605,381

623,186

162,886

164,198

191,614

197,409

2 U.S. government agencies and trust fu n d s ......................................
3 Federal Reserve Banks .......................................................................

12,695
109,616

11,047
117,458

9,569
120,447

9,564
121,328

3,310
31,283

2,555
28,469

1,990
35,190

1,990
35,835

4 Private investors ...................................................................................
5 Commercial banks ...........................................................................
6 Mutual savings b a n k s .......................................................................
7
Insurance companies .......................................................................
8 Nonfinancial corporations ...............................................................
9
Savings and loan associations .........................................................
10 State and local governments ...........................................................
11 All o th e r s ...........................................................................................

365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288

402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072

475,365
75,691
3,803
12,095
7,880
4,061
21,203
350,633

492,294
77,868
3,917
11,930
7,758
4,225
21,058
365,539

128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433

133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546

154,434
43,659
1,912
4,693
2,705
2,147
5,286
94,032

159,585
44,482
1,925
4,504
2,213
2,289
4,595
99,577

Total, within 1 year

5 to 10 years

12 All holders .............................................................................................

228,516

255,252

288,481

297,385

50,400

50,440

52,893

56,037

13 U.S. government agencies and trust f u n d s ......................................
14 Federal Reserve Banks .......................................................................

1,488
52,801

1,629
63,219

834
56,660

830
56,858

1,989
14,809

871
12,977

1,404
13,468

1,404
13,458

15 Private investors ...................................................................................
16 Commercial banks ...........................................................................
17 Mutual savings b a n k s .......................................................................
18 Insurance companies .......................................................................
19 Nonfinancial corporations ...............................................................
20 Savings and loan associations .........................................................
21
State and local governments ...........................................................
22
All o th e r s ...........................................................................................

174,227
20,608
817
1,838
4,048
1,414
8,194
137,309

190,403
20,171
836
2,016
4,933
1,301
5,607
155,539

230,987
23,614
1,172
1,949
3,916
1,769
7,218
191,350

239,697
25,197
1,246
1,940
4,281
1,646
7,750
197,636

33,601
7,490
496
2,899
369
89
1,588
20,671

36,592
8,086
459
2,815
308
69
1,540
23,314

38,021
5,915
437
3,000
382
75
1,999
26,212

41,175
5,793
455
3,037
357
216
2,030
29,287

Bills, within 1 year

10 to 20 years

23 All holders .............................................................................................

161,747

172,644

208,721

216,104

19,800

27,588

36,893

36,854

24 U.S. government agencies and trust fu n d s ......................................
25 Federal Reserve Banks .......................................................................

2
42,397

0
45,337

44,057

1
43,971

3,876
2,088

4,520
3,272

3,686
5,941

3,686
5,919

26 Private investors ...................................................................................
27
Commercial banks ...........................................................................
28 Mutual savings b a n k s .......................................................................
29
Insurance companies .......................................................................
30 Nonfinancial corporations ...............................................................
31
Savings and loan associations .........................................................
32
State and local governments ...........................................................
33
All o th e r s ...........................................................................................

119,348
5,707
150
753
12
262
5,524
105,161

127,306
5,938
262
473
2,793
219
3,100
114,522

164,663
8,651
337
549
1,812
822
5,126
147,366

172,132
9,856
394
672
2,363
818
5,413
152,616

13,836
956
143
1,460
86
60
1,420
9,711

19,796
993
127
1,305
218
58
1,762
15,332

27,266
1,122
181
1,744
428
57
3,651
20,083

27,250
1,071
181
1,718
431
52
3,597
20,200

Other, within 1 year

Over 20 years

34 All holders .............................................................................................

66,769

82,608

79,760

81,281

25,944

33,254

35,500

35,500

35 U.S. government agencies and trust fu n d s ......................................
36 Federal Reserve Banks .......................................................................

1,487
10,404

1,629
17,882

834
12,602

829
12,888

1,031
8,635

1,472
9,520

1,656
9,188

1,656
9,258

37 Private investors ................................................... ............................
38 Commercial banks ...........................................................................
39 Mutual savings b a n k s .......................................................................
40
Insurance companies .......................................................................
41
Nonfinancial corporations ...............................................................
42
Savings and loan associations .........................................................
43
State and local governments ...........................................................
44
All o th e r s ...........................................................................................

54,879
14,901
667
1,084
2,256
1,152
2,670
32,149

63,097
14,233
574
1,543
2,140
1,081
2,508
41,017

66,324
14,963
834
1,401
2,104
947
2,091
43,984

67,565
15,341
852
1,268
1,918
828
2,337
45,020

15,278
1,446
126
774
135
17
3,616
9,164

22,262
1,470
113
842
130
19
3,339
16,340

24,657
1,382
100
708
449
13
3,049
18,956

24,587
1,325
110
730
476
21
3,086
18,838

N ote.

Direct public issues only. Based on Treasury Survey of Ownership from

Treasury Bulletin (U.S. Treasury D epartment).

Data complete for U.S. government agencies and trust funds and Federal Reserve
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
rep o rtin g as of D ec. 31, 1980: (1) 5,354 com m ercial ta n k s ,




460 mutual savings banks, and 723 insurance companies, each about 80 percent;
(2) 413 nonfinancial corporations and 478 savings and loan associations, each about
50 percent; and (3) 491 state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting in the
Treasury Survey, including investor groups not listed separately.

A32
1.43

Domestic Financial Statistics □ March 1981
U.S. GOVERNMENT SECURITIES DEALERS

Transactions

Par value; averages of daily figures, in millions of dollars
1980

1980, week ending W ednesday

1978

Oct. 22

Oct.
1 U.S. government securities

10,838

10,285

6,746
237
2,320
1,148
388

6,173
392
1,889
965
867

17,464

21,716

11,543
350
2,745
1,060
1,766

13,768
442
3,699
1,640
2,167

Oct. 29

Nov. 5

Nov. 12

Nov. 19

Nov. 26
20,769

25,386

By maturity

2
3
4
5
6

B ills ......................................
Other within 1 year ..........
1-5 y e a rs ..............................
5-10 y e a rs ............................
Over 10 y e a rs ......................

7,915
454
2,417
1,1 21

1,276

13,840
464
3,461
1,806
2,005

11,155
430
2,256
798
1,428

10,515
373
3,339
988
1,608

13,100
332
2,541
960
1,608

14,207
302
4,691
3,189
2,997

2,21 1

13,520
432
3,942
943
1,933

14,343
636
3,494
1,594

By type o f customer
1 U.S. government securities

d e a le rs..........................
8 U.S. government securities
brokers ........................
9 Commercial banks ............
10 All others1 ..........................

1,268

1,135

1,448

1,296

1,745

992

1,066

1,669

1,640

1,687

2,096

3,709
2,294
3,567

3,838
1,804
3,508

5,170
1,904
4,660

7,664
2,019
6,485

9,536
2,366
8,069

8,382
2,661
8,726

7,298
1,708
6,070

7,998
1,969
5,790

8,043
2,158
6,671

11,513
2,807
9,427

9,773
2,547
8,271

8,872
2,007
7,795

11 Federal agency securities ..

1,729

1,894

2,723

3,277.

3,074

2,789

2,947

3,194

3,140

3,141

3,656

2,751

1.
Includes, among others, all other dealers and brokers in commodities and
securities, foreign banking agencies, and the Federal Reserve System.
N o te.

Averages for transactions are based on number of trading days in the

period.

1.44

U.S. GOVERNMENT SECURITIES DEALERS

Transactions are market purchases and sales of U.S. government securities deal­
ers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured securities, or purchases or sales of securities under repurchase,
reverse repurchase (resale), or similar contracts.

Positions and Sources of Financing

Par value; averages of daily figures, in millions of dollars
1980
Item

1977

1978

1980, week ending Wednesday

1979
Oct.

Nov.

Dec.

Sept. 24

Oct. 1

Oct. 8

Oct. 15

Oct. 22

Oct. 29

Positions1
1 U.S. government securities ........

5,172

2,656

3,223

2,701

3,279

4,042

2,921

2,164

2,018

2,984

2,517

3,299

2
3
4
5
6

B ills ................................................
Other within 1 year ....................
1-5 y e a rs ........................................
5-10 y e a rs ......................................
Over 10 y e a rs ................................

4,772
99
60
92
149

2,452
260
-9 2
40
-4

3,813
-325
-455
160
30

2,557
-1,082
755
-221
692

3,132
-7 9 2
-1 2 3
-1 3
1,075

4,081
-1,394
-4 3
104
1,294

3,184
-1,788
970
-6 9
624

2,683
-1,425
908
-3 5 9
356

2,126
-1,3 6 9
1,097
-1 5 5
318

2,818
-1,502
853
-6 9
884

2,569
-9 9 5
229
-1 8 7
902

2,566
-7 1 2
970
-3 4 2
818

7 Federal agency securities ............

693

606

1,471

979

357

643

435

486

858

947

1,188

1,066

7,382
22,883

8,285
21,188

7,061
23,322

6,731
23,118

7,009
23,610

7,106
24,203

19,899
19,537

23,391
17,550

20,543
20,467

20,783
19,280

22,376
20,791

22,080
20,408

Financing2
Reverse repurchase agreement3 .
Overnight and continuing . . . .
Term agreements ....................
Repurchase agreements4 ............
10 Overnight and continuing . . . .
11 Term agreements ....................

7,239
23,088

8
9

n.a.

n.a.

n.a.

n.a.
21,835
19,699

1. Net amounts (in terms of par values) of securities owned by nonbank dealer
firms and dealer departments or commercial banks on a commitment, that is, tradedate basis, including any such securities that have been sold under agreements to
repurchase. The maturities of some repurchase agreements are sufficiently long,
however, to suggest that the securities involved are not available for trading pur­
poses. Securities owned, and hence dealer positions, do not include securities
purchased under agreement to resell.
2. Figures cover financing involving U.S. government and federal agency secu­
rities, negotiable CDs, bankers acceptances, and commercial paper.




n.a.

3. Includes all reverse agreements, including those that have been arranged to
make delivery on sales and those for which the securities obtained have been used
as collateral on borrowings.
4. Includes both repurchase agreements undertaken to finance positions and
“matched book” repurchase agreements.
N o t e . Data for positions are averages of daily figures, based on the number of
trading days in the period. Data for financing are based only on Wednesday figures.

Federal Finance
1.45

A33

FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1980
Agency

1976

1977

1978
July

Aug.

Sept.

Oct.

Nov.

Dec.

1 Federal and federally sponsored agencies1 ......................

103,848

112,472

137,063

180,119

179,545

182,713

188,076

188,743

193,229

2 Federal agencies ...................................................................
3 Defense Departm ent2 .......................................................
4 Export-Import Bank3-4 .....................................................
5 Federal Housing Administration5 ................................
6 Government National Mortgage Association
participation certificates6 ........................................
7 Postal Service7 ...................................................................
8 Tennessee Valley Authority ..........................................
9 United States Railway Association7 ............................

22,419
1,113
8,574
575

22,760
983
8,671
581

23,488
968
8,711
588

26,810
661
10,248
516

26,930
651
10,232
508

27,618
641
10,728
495

27,797
636
10,715
490

27,941
631
10,696
486

28,606
610
11,250
477

4,120
2,998
4,935
104

3,743
2,431
6,015
336

3,141
2,364
7,460
356

2,842
1,770
10,300
473

2,842
1,770
10,445
482

2,842
1,770
10,660
482

2,842
1,770
10,835
509

2,842
1,770
11,010
506

2,817
1,770
11,190
492

10 Federally sponsored agencies1 ..........................................
11 Federal Home Loan B a n k s ............................................
12 Federal Home Loan Mortgage Corporation ..............
13 Federal National Mortgage Association ......................
14 Federal Land B a n k s .........................................................
15 Federal Intermediate Credit Banks ..............................
16 Banks for Cooperatives ...................................................
17 Farm Credit Banks1 .........................................................
18 Student Loan Marketing Association8 ........................
19 O th e r...................................................................................

81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2

89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2

113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2

153,309
36,039
2,634
52,114
12,765
1,821
584
45,111
2,240
1

152,615
35,690
2,634
52,001
12,765
1,821
584
44,824
2,295
1

155,095
36,710
2,537
52,382
12,765
1,821
584
45,950
2,345
1

160,279
38,819
2,537
53,889
12,365
1,821
584
47,888
2,375
1

160,802
39,380
2,537
53,643
12,365
1,821
584
48,021
2,450
1

164,623
41,258
2,536
55,185
12,365
1,821
584
48,153
2,720
1

28,711

38,580

51,298

78,870

80,024

82,559

83,903

85,440

87,460

Export-Import Bank4 ...........................................................
Postal Service7 .......................................................................
Student Loan Marketing Association8 ............................
Tennessee Valley Authority ..............................................
United States Railway Association7 ................................

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,898
2,114
915
5,635
356

9,558
1,520
2,240
8,575
473

9,558
1,520
2,295
8,720
482

10,067
1,520
2,345
8,935
482

10,067
1,520
2,375
9,110
509

10,067
1,520
2,450
9,285
506

10,654
1,520
2,720
9,465
492

Other Lending 10
26 Farmers Home A dm inistration..........................................
27 Rural Electrification A dm inistration................................
28 O th e r.......................................................................................

10,750
1,415
4,966

16,095
2,647
6,782

23,825
4,604
6,951

36,715
8,084
11,705

37,403
8,233
11,813

37,961
8,425
12,824

38,466
8,646
13,210

39,431
8,760
13,421

39,431
9,196
13,982

M em o :

20 Federal Financing Bank debt7’9 ........................................
Lending to federal and federally sponsored agencies

21
22
23
24
25

1. In September 1977 the Farm Credit Banks issued their first consolidated bonds,
and in January 1979 they began issuing these bonds on a regular basis to replace
the financing activities of the Federal Land Banks, the Federal Intermediate Credit
Banks, and the Banks for Cooperatives. Line 17 represents those consolidated
bonds outstanding, as well as any discount notes that have been issued. Lines 1
and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957 and
1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the se­
curities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Admin­
istra tio n ; D ep artm en t of H e a lth , E d u c a tio n , and W elfare; D ep artm en t




of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing As­
sociation may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included
in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any partic­
ular agency being generally small. The Farmers Home Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.

A34
1.46

Domestic Financial Statistics □ March 1981
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1980

Type of issue or issuer.

1977

1978

1979

June
1 All issues, new and refunding1 ......................................................

July

Aug.

Sept.

Oct.

Nov.

46,769

48,607

43,490

6,063

4,907

3,809

4,255

4,425

2,806

18,042
28,655

17,854
30,658

12,109
31,256

1,924
4,136

1,396
3,506

804
2,995

1,344
2,902

988
3,418

705
2,090

72

95

125

3

5

10

9

19

11

8 Municipalities, counties, townships, school d istricts..................

6,354
21,717
18,623

6,632
24,156
17,718

4,314
23,434
15,617

897
3,440
1,724

185
3.157
1,558

304
2,212
1,283

640
2,603
1,003

195
2,547
1,666

323
1,569
902

9 Issues for new capital, to ta l.............................................................

36,189

37,629

41,505

5,986

4,539

3,783

3,639

4,265

2,599

5,076
2,951
8,119
8.274
4,676
7,093

5,003
3,460
9,026
10,494
3,526
6,120

5,130
2,441
8,594
15,968
3,836
5,536

753
344
625
3,007
367
930

631
151
1.260
1.695
188
614

266
95
1,176
1,424
341
481

422
425
716
1,198
331
547

767
279
764
1,095
531
829

202
255

Type o f issue
2
3
4
5

General obligation ...........................................................................
Revenue .............................................................................................
Housing Assistance Administration2 ............................................
U.S. government loans ...................................................................
Type o f issuer

6 State .....................................................................................................

7 Special district and statutory authority ........................................

Use o f proceeds

10
11
12
13
14
15

E ducation...........................................................................................
Transportation ............................................................................................
Utilities and conservation ...............................................................
Social w elfare ..............................................................................................
Industrial aid ..............................................................................................
Other purposes .................................................................................

1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing Act. which are secured by
contract requiring the Housing Assistance Administration to make annual contri­
butions to the local authority.

1.47

So u r c e .

367
1,023
369
383

Public Securities Association.

NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer.
or use

1980
1977

1978

1979
May

June

July

Aug.

53,792

47,230

51,464

9,067

9,511

7,941

5,371

42,015

36,872

40,139

7,335

8,148

6,567

4,147

24,072
17,943

19.815
17.057

25,814
14,325

6,810
525

7,548
600

5.354
1,213

M anufacturing...............................................................
Commercial and miscellaneous..................................
Transportation...............................................................
Public u tility ..................................................................
Com m unication.............................................................
Real estate and financial ............................................

12,204
6,234
1,996
8,262
3,063
10,258

9.572
5.246
2,007
7,092
3,373
9.586

9,667
3,941
3,102
8,118
4,219
11,095

2,400
560
364
723
1,171
2,116

2,318
1,629
385
1,412
209
2.195

11 Stocks .............................................................................

11,777

10,358

11,325

1,732

3,916
7,861

2.832
7,526

3,574
7,751

1,189
1,834
456
5,865
1,379
1,049

1,241
1,816
263
5.140
264
1,631

1,679
2,623
255
5,171
303
1,293

1 AH issues1 .......................................................................
2 Bonds...............................................................................

Sept.

Oct.

Nov.

5,728

3,827

2,813

3,275

2,055

3,843
304

2,421
392

2,756
519

1,405
650

2.851
999
329
316
787
1.284

1.499
203
338
971
580
556

509
357
401
555
517
472

614
312
236
754
791
568

88
432
86
565
163
722

1,363

1,374

1,224

2,109

2,453

1,772

202
1,530

382
981

360
1.014

101
1.123

392
1.717

535
1,918

256
1,516

215
512
27
615
25
338

127
202
9
494
126
406

165
390

293
238
32
463
46
152

502
569
54
633
6
345

848
321
117
526
67
574

418
509
53
227
113
452

4,922

Type o f offering

3 Public .............................................................................
4 Private placement .........................................................
Industry group

5
6
7
8
9
10

Type

12 P referred.........................................................................
13 C om m on.........................................................................
Industry group

14
15
16
17
18
19

M anufacturing...............................................................
Commercial and miscellaneous..................................
Transportation...............................................................
Public u tility ...................................................................
C om m unication.............................................................
Real estate and financial .............................................

1.
Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000. secondary
offerings, undefined or exempted issues as defined in the Securities Act of




714
104

1933. employee stock plans, investment companies other than closed-end. intra­
corporate transactions, and sales to foreigners,
So u r c e .

Securities and Exchange Commission.

Corporate Finance
1.48

OPEN-END INVESTMENT COMPANIES

A35

Net Sales and Asset Position

Millions of dollars
1980
Item

1979

1981

1980
June

July

Sept.

Aug.

Oct.

Nov.

Dec.

Jan.

I n v e st m e n t C o m p a n ie s 1

1 Sales of own shares2 .....................................................
2 Redemptions of own shares3 ......................................
3 Net s a le s .........................................................................

7,495
8,393
-8 9 8

15,266'
12,012
3,254'

1,772
775
997

1,890
863
1,027

1,507
1,019
488

1,405
1,228
177

1,523
1,362
161

1,289
1,086
203

4 Assets4 ...........................................................................
5
Cash position5 ...........................................................
O th e r...........................................................................
6

49,277
4,983
44,294

58,400
5,321
53,079

52,946
6,495
46,451

54,406
5,629
48,777

54,941
5,619
49,322

55,779
5,481
50,298

56,156
5,460
50,696

60,329
5,467
54,862

58,400
5,321
53,079

1,675
1,193
482
56,160
4,636
51,524

5.
Also includes all U.S. government securities and other short-term debt se­
curities.

1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to an­
other in the same group.
4. Market value at end of period, less current liabilities.

1.49

1,242'
1,720
-4 78 '

N o t e . Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Se­
curities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.

CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1980

1979
1977

Account

1978

1979
01

Q2

Q3

Q4

Ql

Q2

Q3

1 Profits before t a x ...........................................................

192.6

223.3

255.4

253.1

250.9

262.0

255.4

277.1

217.9

237.6

Profits tax liability.........................................................
Profits after tax .............................................................
D ividends...................................................................
Undistributed profits ...............................................
Capital consumption allow ances................................
Net cash f lo w .................................................................

72.6
120.0
38.7
81.3
110.4
191.7

83.0
140.3
43.1
97.2
122.9
220.1

87.6
167.7
48.6
119.1
139.5
258.6

88.5
164.6
47.5
117.1
131.9
249.0

86.4
164.5
48.3
116.2
137.2
253.4

88.4
173.6
48.6
125.0
142.6
267.6

87.2
168.2
50.1
118.1
146.4
264.5

94.2
182.9
52.4
130.5
151.7
282.2

71.5
146.4
54.2
92.2
155.4
247.6

78.5
159.1
55.1
104.0
160.5
264.5

2
3
4
5
6
7

S o u r c e . Survey o f Current Business (U .S .




Department of Commerce).

A36
1.50

Domestic Financial Statistics □ March 1981
NONFINANCIAL CORPORATIONS

Current Assets and Liabilities

Billions of dollars, except for ratio
1979
Account

1975

1976

1977

1980

1978
Q2

03

04

Ql

Q2

Q3

1 Current assets ...............................................................

759.0

826.8

902.1

1,030.0

1,108.2

1,169.5

1,200.9

1,235.2

1,233.8

1,255.8

2
3
4
5
6

82.1
19.0
272.1
315.9
69.9

88.2
23.4
292.8
342.4
80.1

95.8
17.6
324.7
374.8
89.2

104.5
16.3
383.8
426.9
98.5

100.1
18.6
421.1
465.2
103.2

103.7
15.8
453.0
489.4
107.7

116.1
15.6
456.8
501.7
110.8

110.2
15.1
471.2
519.5
119.3

111.5
13.8
464.2
525.7
118.7

113.2
16.3
479.2
525.1
122.0

C ash .................................................................................
U .S . government securities .........................................
Notes and accounts receivable ..................................
In v entories.....................................................................
O th e r...............................................................................

7 Current liabilities .........................................................

451.6

494.7

549.4

665.5

724.7

777.8

809.1

838.3

828.1

852.1

8 Notes and accounts payable .......................................
9 O th e r...............................................................................

264.2
187.4

281.9
212.8

313.2
236.2

373.7
291.7

406.4
318.3

438.8
339.0

456.3
352.8

467.9
370.4

463.1
364.9

477.3
374.8

10 Net working capital......................................................

307.4

332.2

352.7

364.6

383.5

391.7

391.8

397.0

405.7

403.7

11 M e m o : Current ratio 1 .................................................

1.681

1.672

1.642

1.548

1.529

1.504

1.484

1.474

1.490

1.474

1. Ratio of total current assets to total current liabilities.

All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.

For a description of this series, see “Working Capital of Nonfinancial
Corporations” in the July 1978 B u l l e t in , pp. 533-37.
N ote.

So u r c e.

1.51

Federal Trade Commission.

TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Industry

1 Total nonfarm business ...............................................

1979

1980

1981

19802
Q3

04

Ql

Q2

Q3

Q42

Q l2

Q22

270.46

294.30

273.15

284.30

291.89

294.36

296.23

294.95

310.59

323.84

51.07
47.61

58.25
56.65

52.13
47.97

55.03
51.55

58.28
53.49

59.38
56.32

58.19
58.21

57.42
57.96

60.23
62.46

65.36
65.21

11.38

13.50

11.40

11.86

11.89

12.81

13.86

15.25

16.07

18.02

4.03
4.01
4.31

4.17
3.97
3.84

4.13
3.95
4.60

4.24
4.55
4.41

4.46
3.90
4.11

4.06
4.27
3.76

3.98
4.06
4.18

4.22
3.59
3.44

3.62
4.04
3.83

4.07
3.41
4.13

27.65
6.31
79.26
34.83

27.44
7.18
82.28
37.02

28.71
6.35
78.86
35.05

27.16
6.92
82.69
35.90

28.98
7.28
82.17
37.34

27.91
7.12
81.07
37.66

28.14
7.44
81.19
36.97

25.05
6.90
84.87
36.26

27.99
8.79
84.09
39.48

27.93
8.29
87.43
40.01

Manufacturing

2 Durable goods in d u stries.............................................
3 Nondurable goods industries......................................
Nonmanufacturing

4 M ining.............................................................................
Transportation
5 Railroad .....................................................................
6
A i r ...............................................................................
7
O th e r...........................................................................
Public utilities
8 E le c tric .......................................................................
9
Gas and other ..........................................................
10 Trade and services .......................................................
11 Communication and other1 ........................................

1. “O ther” consists of construction; social services and membership organization;
and forestry, fisheries, and agricultural services.




2. Anticipated by business,
Source.

Survey o f Current Business (U .S. Dept, of Commerce).

Corporate Finance
1.52 DOMESTIC FINANCE COMPANIES

A37

Assets and Liabilities

Billions of dollars, end of period
1980
Account

1974

1975

1976

1977

1978

1979
Q2

Ql

Q3

Q4

A ssets
A ccounts receivable, gross
C onsum er.......................................................................
Business .........................................................................
Total ...........................................................................
L ess: Reserves for unearned income and losses . . .
Accounts receivable, net .............................................
Cash and bank deposits ...............................................
Securities .......................................................................
A llo th e r .........................................................................

36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0

36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8

38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6

44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3

52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3

65.7
70.3
136.0
20.0
116.0

9 Total assets.....................................................................

79.6

81.6

89.2

104.3

122.4

9.7
20.7

8.0
22.2

6.3
23.7

5.9
29.6

4.9
26.5
5.5

4.5
27.6
6.8

5.4
32.3
8.1

6.2
36.0
11.5

1
2
3
4
5
6
7
8

67.7
70.6
138.4
20.4
118.0

70.2
70.3
140.4
21.4
119.0

71.7
66.9
138.6
22.3
116.3

73.6
72.3
145.9
23.3
122.6

23.7

26.1

28.3

27.5

140.9

141.7

145.1

144.7

150.1

6.5
34.5

8.5
43.3

9.7
40.8

10.1
40.7

10.1
40.5

13.2
43.4

8.1
43.6
12.6

8.2
46.7
14.2

7.4
48.9
15.7

7.9
50.5
16.0

7.7
52.0
14.6

7.5
52.4
14.3

24.91

L iabilities
10 Bank loans .....................................................................
11 Commercial p a p e r .........................................................
Debt
12 Short-term, n.e.c........................................................
13 Long-term n.e.c..........................................................
14 O th e r...........................................................................
15 Capital, surplus, and undivided profits ....................

12.4

12.5

13.4

15.1

17.2

19.9

19.2

19.9

19.8

19.4

16 Total liabilities and capital...........................................

79.6

81.6

89.2

104.3

122.4

140.9

141.7

145.1

144.7

150.1

1. Beginning Q l 1979, asset items on lines 6, 7, and 8 are combined.
N ote . Components may not add to totals due to rounding.

1.53

DOMESTIC FINANCE COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding
Nov. 30,
19801

Accounts
receivable
outstanding
Dec. 31,
19801

Changes in accounts
receivable

Extensions

Repayments

1980

1980

1980

Oct.

Nov.

Dec.

Oct.

Nov.

Dec.

Oct.

Nov.

Dec.

1 Total .......................................................................

69,742

72,337

647

410

1,982

16,781

15,681

18,308

16,134

15,271

16,326

2 Retail automotive (commercial vehicles) ........
3 Wholesale automotive .........................................
4 Retail paper on business, industrial and
farm e q u ip m e n t.............................................
5 Loans on commercial accounts receivable and
factored commercial accounts receivable .
6 All other business credit .....................................

12,469
11,169

12,455
12,182

-1 2 8
62

-1 6 9
299

-1 5 1
434

969
5,223

908
5,455

923
5,564

1,097
5,161

1,077
5,156

1,074
5,130

22,589

23,465

16

149

876

1,460

1,612

1,562

1,444

1,463

686

6,014
17,501

7,416
16,819

408
289

-2 6 1
392

1,195
-3 7 2

6,756
2,373

5,455
2,251

7,827
2,432

6,348
2,084

5,716
1,859

6,632
2,804

1. Not seasonally adjusted.




A38

Domestic Financial Statistics □ March 1981

1.54 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1980
Item

1978

1979

1981

1980
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Terms and yields in primary and secondary markets
Primary Markets

1
2
3
4
5
6

Conventional mortgages on new homes
Terms 1
Purchase price (thousands of dollars) ......................
Amount of loan (thousands of d ollars)....................
Loan/price ratio (percent) ...........................................
Maturity (years) ...........................................................
Fees and charges (percent of loan amount)2 ..........
Contract rate (percent per annum) ..........................

62.6
45.9
75.3
28.0
1.39
9.30

74.4
53.3
73.9
28.5
1.66
10.48

83.5
59.3
73.3
28.2
2.10
12.25

89.0
63.7
73.5
28.9
2.13
12.11

88.6
61.5
71.2
27.7
2.12
11.84

83.7
58.7
72.2
27.6
2.10
11.95

84.0
61.3
75.0
28.2
2.16
12.20

77.1
56.1
75.2
27.6
2.15
12.62

97.0
63.0
72.9
28.2
2.40
12.80

89.8
65.1
75.6
29.0
2.60
13.02

9.54
9.68

10.77
11.15

12.65
13.95

12.51
12.45

12.25
13.25

12.35
13.70

12.60
14.10

13.04
14.70

13.26
15.05

13.54
14.95

9.70
8.98

10.87
10.22

13.42
12.55

12.39
11.53

13.54
12.34

14.26
12.84

14.38
12.91

14.47
13.55

14.08
13.62

14.23
13.50

9.77
10.01

11.17
11.77

14.11
14.43

12.65
12.80

13.92
13.66

14.77
14.45

14.94
14.70

15.53
15.30

15.21
15.54

14.27
14.95

56,188
32,493

56,619

57,327
33,417

57,380

18,148

32,839
18,239

Yield (percent p e r annum)

7 FHLBB series3 .............................................................
8 HUD series4 ...................................................................
Secondary Markets
Yield (percent p er annum)

9 FHA mortgages (HUD series)5 ................................
10 GNMA securities6 .........................................................
FNMA auctions7
11 Government-underwritten lo a n s............................
12 Conventional lo a n s ...................................................

Activity in secondary markets
Federal N ational Mortgage A ssociation
M ortgage holdings (end o f period)

43,311
15,511
10,544
11,524

51,091
51,327
18,886
| 33,4178
10,496
16,106
18,358

55,362
31,751
18,034

55,361
31,741
18,049

55,632
31,997
18,074

17 Purchases .......................................................................
18 Sales ...............................................................................

12,303
9

10,805
0

8,100
0

100
0

167
0

500
0

771
0

Mortgage comm itm ents 9
19 Contracted (during period) .........................................
20 Outstanding (end o f period) .......................................

18,959
9,185

10,179
6,409

8,044
3,278

734
4,230

1,180
4,545

1,070
4,789

12,978
6,747.2

8,860
3,921

8,605
4,002

1,055.6
430.3

1,063.3
628.10

9,933.0
5,111

4,495
2,344

3,639
1,749

228.7
140.9

3,064
1,243
1,165

4,035
1,102
1,957

5,067
1,033
2,830

28 Purchases .......................................................................
29 Sales ...............................................................................

6,525
6,211

5,717
4,544

Mortgage comm itm ents 11
30 Contracted (during period) .........................................
31 Outstanding (end of period) .......................................

7,451
1,410

5,542
797

14
15
16

FHA-insured .............................................................
VA-guaranteed .........................................................
Conventional .............................................................

18,358

33,417
18,435

579
0

855
0

185
0

514
4,399

472
3,963

403
3,278

241
3,063

907.0
538.0

427.8
257.7

252.0
135.6

242.1
110.8

210.7
93.0

430.4
218.8

347.7
209.8

107.6
93.9

81.6
68.8

84.8
54.1

32.0
30.3

4,151
1,066
3,085

4,295
1,058
3,237

4,543
1,050
3,492

4,727
1,044
3,629

4,843
1,038
3,715

5,067
1,033
2,830

5,039
1,029
2,825

3,722
2,526

440
288

495
320

521
275

398
187

231
94

285
48

152
168

3,859
447

708
1,386

476
1,300

218
934

222
726

180
653

126
447

203
487

Mortgage transactions (during period)

Auction o f 4-month comm itm ents to buy

Government-underwritten loans
O ffered .......................................................................
Accepted.....................................................................
Conventional loans
23
O ffered.......................................................................
24
Accepted.....................................................................
21
22

Federal H ome Loan Mortgage Corporation
Mortgage holdings (end o f p e rio d )10

25 Total ............ ..................................................................
26 FH A/VA .....................................................................
27 Conventional .............................................................
M ortgage transactions (during period)

1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups. Compiled by the Federal Home Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and “points” paid (by the borrower
or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages,
rounded to the nearest 5 basis points; from Department of Housing and Urban
Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private sec­
ondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Associ­
atio n g u a ra n te e d , m o rtg a g e -b a c k e d , fully m odified p ass-th ro u g h




securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages
carrying the prevailing ceiling rate. Monthly figures are unweighted averages of
Monday quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage serv­
icing) on accepted bids in Federal National Mortgage Association’s auctions of 4month commitments to purchase home mortgages, assuming prepayment in 12
years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month.
8. Beginning March 1980, FHA-insured and VA-guaranteed mortgage holdings
in lines 14 and 15 are combined.
9. Includes some multifamily and nonprofit hospital loan commitments in ad­
dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction
system, and through the FNMA-GNMA tandem plans.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.

Real Estate Debt
1.55

A39

MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1979
Type of holder, and type of property

1978

1979

Q4
1 All holders .............................................................................

1,168,486

1,324,856

1980

1980

1,449,633

1,333,550

Ql
1,355,402

Q2

03

Q4

1,378,414

1,412,515

1,449,633
956,475
137,859
258,799
96,500

2 1- to 4-family .........................................................................
3 Multifamily.............................................................................
4 Commercial ...........................................................................
5

764,246
121,285
211,749
71,206

875,874
129,261
237,205
82,516

956,475
137,859
258,799
96,500

872,068
130,713
238,412
92,357

894,980
130,800
242,709
86,913

908,119
132,430
246,861
91,004

931,232
134,856
252,783
93,644

6 Major financial institutions .................................................
7 Commercial banks1 ...........................................................
1- to 4-family .................................................................
8
9
M ultifamily.....................................................................
10
Commercial ...................................................................
11
Farm ...............................................................................

848,177
214,045
129,167
10,266
66,115
8,497

938,676
245,187
149,460
11,180
75,957
8,590

998,025
264,602
160,746
12,304
82,688
8,864

939,487
245,998
145,975
12,546
77,096
10,381

951,402
250,702
152,553
11,557
77,993
8,599

958,892
253,103
153,753
11,764
79,110
8,476

977,454
258,003
156,737
11,997
80,626
8,643

998,025
264,602
160,746
12,304
82,688
8,864

12
13
14
15
16

Mutual savings banks .......................................................
1- to 4-family .................................................................
M ultifamily.....................................................................
Commercial ...................................................................
Farm ...............................................................................

95,157
62,252
16,529
16,319
57

98,908
64,706
17,180
16,963
59

99,827
65,307
17,340
17,120
60

98,908
64,706
17,180
16,963
59

99,151
64,865
17,223
17,004
59

99,150
64,864
17,223
17,004
59

99,306
64,966
17,249
17,031
60

99,827
65,307
17,340
17,120
60

17
18
19
20

Savings and loan associations .........................................
1- to 4-family .................................................................
M ultifamily.....................................................................
Commercial ...................................................................

432,808
356,114
36,053
40,641

475,797
394,436
37,588
43,773

502,718
417,759
39,011
45,948

475,797
394,436
37,588
43,773

479,078
398,114
37,224
43,740

481,184
398,864
37,340
43,980

492,068
408,908
38,185
44,975

502,718
417,759
39,011
45,948

21
22
23
24
25

Life insurance companies ...............................................
1- to 4-family .................................................................
M ultifamily.....................................................................
Commercial ...................................................................
Farm ...............................................................................

106,167
14,436
19,000
62,232
10,499

118,784
16,193
19,274
71,137
12,180

130,878
18,420
19,813
79,843
12,802

118,784
16,193
19,274
71,137
12,180

122,471
16,850
19,590
73,618
12,413

125,455
17,796
19,284
75,693
12,682

128,077
17,996
19,357
77,995
12,729

130,878
18,420
19,813
79,843
12,802

26 Federal and related agencies...............................................
27
Government National Mortgage A ssociation..............
28
1- to 4-family .................................................................
29
M ultifamily.....................................................................

81,853
3,509
877
2,632

97,293
3,852
763
3,089

114,325
4,453
709
3,744

97,293
3,852
763
3,089

104,133
3,919
749
3,170

108,742
4,466
736
3,730

110,695
4,389
719
3,670

114,325
4,453
709
3,744

30
31
32
33
34

Farmers Home A dm inistration......................................
1- to 4-family .................................................................
M ultifamily.....................................................................
Commercial ...................................................................
Farm ...............................................................................

926
288
320
101
217

1,274
417
71
174
612

3,725
1,033
818
391
1,483

1,274
417
71
174
612

2,845
1,139
408
409
889

3,375
1,383
636
402
954

3,525
978
774
370
1,403

3,725
1,033
818
391
1,483

35
36
37

Federal Housing and Veterans A dm inistration..........
1- to 4-family .................................................................
M ultifamily.....................................................................

5,419
1,641
3,778

5,764
1,863
3,901

5,824
1,879
3,945

5,764
1,863
3,901

5,833
1,908
3,925

5,894
1,953
3,941

5,769
1,826
3,943

5,824
1,879
3,945

38
39
40

Federal National Mortgage Association ......................
1- to 4-family .................................................................
M ultifamily.....................................................................

43,311
37,579
5,732

51,091
5,488
5,603

57,327
51,775
5,552

51,091
45,488
5,603

53,990
48,394
5,596

55,419
49,837
5,582

55,632
50,071
5,561

57,327
51,775
5,552

41
42
43

Federal Land Banks .........................................................
1- to 4-family .................................................................
Farm ...............................................................................

25,624
927
24,697

31,277
1,552
29,725

38,131
2,099
36,032

31,277
1,552
29,725

33,311
1,708
31,603

35,574
1,893
33,681

36,837
1,985
34,852

38,131
2,099
36,032

44
45
46

Federal Home Loan Mortgage Corporation ..............
1- to 4-family .................................................................
M ultifamily.....................................................................

3,064
2,407
657

4,035
3,059
976

4,865
3,710
1,155

4,035
3,059
976

4,235
3,210
1,025

4,014
3,037
977

4,543
3,459
1,084

4,865
3,710
1,155

47 Mortgage pools or trusts2 ...................................................
48
Government National Mortgage A ssociation..............
49
1- to 4-family .................................................................
50
M ultifamily.....................................................................

88,633
54,347
52,732
1,615

119,278
76,401
74,546
1,855

142,498
93,874
91,602
2,272

119,278
76,401
74,546
1,855

124,632
80,843
78,872
1,971

129,647
84,282
82,208
2,074

136,583
89,452
87,276
2,176

142,498
93,874
91,602
2,272

51
52
53

Federal Home Loan Mortgage Corporation ..............
1- to 4-family .................................................................
M ultifamily.....................................................................

11,892
9,657
2,235

15,180
12,149
3,031

16,952
13,397
3,555

15,180
12,149
3,031

15,454
12,359
3,095

16,120
12,886
3,234

16,659
13,318
3,341

16,952
13,397
3,555

54
55
56
57
58

Farmers Home A dm inistration......................................
1- to 4-family .................................................................
M ultifamily.....................................................................
Commercial ...................................................................
Farm ...............................................................................

22,394
13,400
1,116
3,560
4,318

27,697
14,884
2,163
4,328
6,322

31,672
16,865
2,323
5,258
7,226

27,697
14,884
2,163
4,328
6,322

28,335
14,926
2,159
4,495
6,755

29,245
15,224
2,159
4,763
7,099

30,472
16,226
2,235
5,059
6,952

31,672
16,865
2,323
5,258
7,226

59 Individual and others3 .........................................................
60
1- to 4-family .....................................................................
61
M ultifamily.........................................................................
62
Commercial .......................................................................
63
Farm ...................................................................................

149,823
82,769
21,352
22,781
22,921

169,609
96,358
23,350
24,873
25,028

194,785
111,174
26,027
27,551
30,033

177,492
96,037
23,436
24,941
33,078

175,235
99,333
23,857
25,450
26,595

181,133
102,685
24,486
25,909
28,053

187,783
106,767
25,284
26,727
29,005

194,785
111,174
26,027
27,551
30,033

1. Includes loans held by nondeposit trust companies but not bank trust de­
partments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment trusts, state
and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U.S. agencies for which amounts are small or separate
data are not readily available.




N o t e . Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and in­
terpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.

A40
1.56

Domestic Financial Statistics □ March 1981
CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change
Millions of dollars
1980

1981

Holder, and type of credit
July

Aug.

Sept.

Oct.

Amounts outstanding (end of period)

1 Total ..............................

230,564

273,645

312,024

303,853

305,763

306,926

307.222

308,051

313,435

310,554

112,373
44,868
37,605
23,490
7,089
2,963
2,176

136,016
54,298
44,334
25,987
7,097
3,220
2,693

154,177
68,318
46,517
28,119
8,424
3,729
2,740

146,555
73,909
42,644
24,620
8,991
4,500
2,634

146,548
74,433
43,347
24,918
9,141
4,710
2,666

146,362
74,823
43,562
25,301
9,266
4,872
2,740

145.895
•74.985
43,518
25,703
9,611
4,736
2,774

145,147
75,690
43,606
26,469
9,687
4,662
2,790

145,765
76,756
44,041
29,410
9,911
4,717
2,835

143,749
77,131
43,601
28,300
10,023
4,929
2,821

9 Automobile ..................
10 Commercial banks ..
11
Indirect paper
12
Direct loans ..........
13 Credit unions ............
14 Finance companies ..

82,911
49,577
27,379
22,198
18,099
15,235

101,647
60,510
33,850
26,660
21,200
19,937

116,362
67,367
38,338
29,029
22,244
26,751

116,125
63,344
36,233
27,111
20,392
32,389

116,868
63,177
36,047
27,130
20,728
32,963

116,781
62,734
35,768
26,966
20,831
33,216

116,657
62,350
35,572
26,778
20,810
33,497

116,517
61,848
35,284
26,564
20,852
33,817

116,327
61,025
34,857
26,168
21,060
34,242

115,262
59,608
33,947
25,661
20,850
34,804

15 R evolving......................
16 Commercial banks ..
17 R e ta ile rs ....................
18 Gasoline companies .

39,274
18,374
17,937
2.963

48,309
24,341
20,748
3,220

56,937
29,862
23,346
3,729

53,036
28,073
20,463
4,500

53,771
28,305
20,756
4,710

54,406
28,403
21,131
4,872

54,598
28,331
21,531
4,736

55,304
28,360
22,282
4,662

59,862
30,001
25,144
4,717

58,985
29,952
24,104
4,929

19 Mobile home ................
20 Commercial banks ..
21
Finance companies ..
22
Savings and loans . ..
23
Credit unions ............

14.945
9,124
3,077
2,342
402

15,235
9,545
3,152
2,067
471

16,838
10,647
3,390
2,307
494

17,004
10,568
3,546
2,437
453

17,068
10,564
3,566
2,477
461

17,113
10,538
3,601
2,511
463

17,276
10,502
3,657
2.654
463

17,293
10,452
3,702
2,675
464

17,327
10,376
3,745
2,737
469

17,244
10,271
3,741
2,768
464

24 O th e r ..............................
25
Commercial banks ..
26 Finance companies ..
27
Credit u n io n s ............
28
R e ta ile rs ....................
29 Savings and loans ..
30 Mutual savings banks

93,434
35,298
26,556
19,104
5,553
4,747
2,176

108,454
41,620
31,209
22,663
5,239
5,030
2,693

121,887
46,301
38,177
23,779
4,773
6,117
2,740

117,688
44,570
37,974
21,799
4,157
6,554
2,634

118,056
44,502
37,904
22,158
4,162
6,664
2,666

118,626
44,687
38,006
22,268
4,170
6,755
2,740

113,691
44,712
37,831
22,245
4,172
6,957
2,774

118,937
44,487
38,171
22,290
4,187
7,012
2,790

119,919
44,363
38,769
22,512
4,266
7,174
2,835

119,063
43,918
38,586
22,287
4,196
7,255
2,821

By major holder

2
3
4
5
6
7
8

Commercial banks
Finance companies
Credit u n io n s ................
Retailers2 ......................
Savings and loans ........
Gasoline companies . . .
Mutual savings banks ..
By m ajor type o f credit

Net change (during period)3
35,462

43,079

38,381

-1,199

489

1,055

702

839

1,619

869

18,645
5,949
6,436
2,654
1,309
132
337

23,641
9,430
6,729
2,497
7
257
518

18,161
14,020
2,185
2,132
1,327
509
47

-1,749
439
-2 7 0
89
155
132
5

-6 8 2
387
465
160
5
136
18

-2 6 5
613
36
456
93
90
32

-3 3 6
454
63
134
246
98
43

-1 2 0
594
218
52
-1 4
72
37

-2 7 6
860
378
316
190
83
68

-1,357
1,113
288
409
232
106
78

39 Automobile ..............................................
40
Commercial banks ..............................
41
Indirect paper ..................................
42
Direct loans ......................................
43
Credit unions ........................................
44
Finance companies ..............................

15,204
9,956
5,307
4,649
2,861
2,387

18,736
10,933
6,471
4,462
3,101
4,702

14,715
6,857
4,488
2,369
1,044
6,814

-7 1 7
-1,083
-7 8 4
-2 9 9
-1 0 8
474

355
-3 4 4
-2 8 6
-5 8
215
484

84
-3 6 2
-2 8 2
-8 0
10
436

201
-3 4 8
-1 7 0
-1 7 8
18
531

245
-1 3 8
-4 4
-9 4
101
282

302
-491
-1 8 1
-3 1 0
174
619

-6 3
-1,253
-8 3 9
-4 1 4
206
984

45 R evolving ..................................................
46
Commercial banks ..............................
47
R e ta ile rs ................................................
48
Gasoline companies ............................

6,248
4,015
2,101
132

9,035
5,967
2,811
257

8,628
5,521
2,598
509

38
-2 5 9
165
132

281
-2 4
169
136

478
-8 1
469
90

273
-1 9
194
98

265
121
72
72

616
211
322
83

557
59
392
106

49 Mobile home ............................................
50
Commercial banks ..............................
51
Finance companies ..............................
52
Savings and loans ................................
53
Credit unions ........................................

371
387
-1 8 7
101
70

286
419
74
-2 7 6
69

1,603
1,102
238
240
23

14
-2 3
-2
45
-6

33
-8
14
21
6

43
-2 2
30
35
0

141
-21
42
120
0

24
-3 3
44
11
2

66
-3 4
48
47
5

-2 4
-8 5
15
46
0

54 O th e r ..........................................................
55
Commercial banks ..............................
56
Finance companies ..............................
57
Credit unions ........................................
58
R e ta ile rs ................................................
59
Savings and loans ................................
60
Mutual savings banks ..........................

13,639
4,287
3,749
3,505
553
1,208
337

15,022
6,322
4,654
3,559
-3 1 4
283
518

13,435
4,681
6,968
1,118
-4 6 6
1,087
47

-5 3 4
-3 8 4
-3 3
-1 5 6
-7 6
110
5

-1 8 0
-3 0 6
-1 1 1
244
-9
-1 6
18

450
200
147
26
-1 3
58
32

87
52
-1 1 9
45
-6 0
126
43

305
-7 0
268
115
-2 0
-2 5
37

635
38
193
199
-6
143
68

399
-7 8
114
82
17
186
78

31 Total ..........................................................
By major holder

32
33
34
35
36
37
38

Commercial banks ..................................
Finance companies ..................................
Credit u n io n s ............................................
Retailers2 ..................................................
Savings and loans ....................................
Gasoline companies ................................
Mutual savings banks ..............................
By m ajor type o f credit

1. The Board’s series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.




2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); figures for all months are seasonally adjusted.

Consumer Debt
1.57

A41

CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1981

1980
Holder, and type of credit

1977

1978

1979
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Extensions
257,600

297,668

324,777

23,997

26,176

27,064

27,365

25,991

27,149

27,059

117,896
41,989
34,028
42,183
4,978
14,617
1,909

142,433
50,505
38,111
44,571
3,724
16,017
2,307

154,733
61,518
34,926
47,676
5,901
18,005
2,018

10,098
4,809
2,305
4,148
582
1,902
153

11,107
5,155
3,085
4,263
454
1,941
171

11,671
5,355
2,752
4,596
539
1,965
186

11,977
5,323
2,872
4,291
695
2,009
198

11,432
4,852
2,795
4,250
444
2,024
194

11,484
5,185
3,035
4,497
658
2,061
229

10,397
5,904
2,994
4,673
715
2,130
246

9 Automobile ...................................................................
10 Commercial banks ...................................................
11
Indirect paper .......................................................
12
Direct loans ...........................................................
13 Credit u n io n s .............................................................
14 Finance companies ...................................................

75,641
46,363
25,149
21,214
16,616
12,662

87,981
52,969
29,342
23,627
18,539
16,473

93,901
53,554
29,623
23,931
17,397
22,950

6,068
2,771
1,329
1,442
1,197
2,100

7,400
3,606
1,866
1,740
1,570
2,224

7,518
3,713
2,035
1,678
1,455
2,350

7,544
3,791
2,135
1,656
1,457
2,296

7,117
3,552
1,962
1,590
1,402
2,163

7,234
3,271
1,857
1,414
1,538
2,425

7,237
2,598
1,230
1,368
1,598
3,047

15 R evolving.......................................................................
16 Commercial banks ...................................................
17 R etailers.....................................................................
18 Gasoline companies .................................................

87,596
38,256
34,723
14,617

105,125
51,333
37,775
16,017

120,174
61,048
41,121
18,005

10,679
5,059
3,718
1,902

10,700
4,989
3,770
1,941

11,143
5,067
4,111
1,965

11,124
5,264
3,851
2,009

10,953
5,155
3,774
2,024

11,614
5,554
3,999
2,061

11,483
5,185
4,168
2,130

19 Mobile home .................................................................
20 Commercial banks ...................................................
21
Finance companies ...................................................
22
Savings and loans .....................................................
23
Credit u n io n s .............................................................

5,712
3,466
644
1,406
196

5,412
3,697
886
609
220

6,471
4,542
797
948
184

377
226
52
95
4

415
263
56
78
18

442
250
84
95
13

513
257
89
159
8

424
243
93
74
14

479
254
89
119
17

383
171
81
119
12

24 O th e r...............................................................................
25
Commercial banks ...................................................
26
Finance companies ...................................................
27 Credit u n io n s .............................................................
28
R e ta ile rs.....................................................................
29
Savings and loans .....................................................
30 Mutual savings banks ...............................................

88,651
29,811
28,683
17,216
7,460
3,572
1,909

99,150
34,434
33,146
19,352
6,796
3,115
2,307

104,231
35,589
37,771
17,345
6,555
4,953
2,018

6,873
2,042
2,657
1,104
430
487
153

7,661
2,249
2,875
1,497
493
376
171

7,961
2,641
2,921
1,284
485
444
186

8,184
2,665
2,938
1,407
440
536
198

7,497
2,482
2,596
1,379
476
370
194

7,822
2,405
2,671
1,480
498
539
229

7,956
2,443
2,776
1,390
505
596
246

1 Total ...............................................................................
By major holder

2
3
4
5
6
7
8

Commercial banks .......................................................
Finance companies .......................................................
Credit u n io n s .................................................................
Retailers1 .......................................................................
Savings and loans .........................................................
Gasoline companies .....................................................
Mutual savings banks ...................................................
By m ajor type o f credit

Liquidations
222,138

254,589

286,396

25,196

25,687

26,009

26,663

25,152

25,530

26,190

99,251
36,040
27,592
39,529
3,669
14,485
1,572

118,792
41,075
31,382
42,074
3,717
15,760
1,789

136,572
47,498
32,741
45,544
4,574
17,496
1,971

11,847
4,370
2,575
4,059
427
1,770
148

11,789
4,768
2,620
4,103
449
1,805
153

11,936
4,742
2,716
4,140
446
1,875
154

12,313
4,869
2,809
4,157
449
1,911
155

11,552
4,258
2,577
4,198
458
1,952
157

11,760
4,325
2,657
4,181
468
1,978
161

11,754
4,791
2,706
4,264
483
2,024
168

39 Automobile ...................................................................
40
Commercial banks ...................................................
41
Indirect paper .......................................................
42
Direct loans ...........................................................
43
Credit u n io n s .............................................................
44 Finance companies ...................................................

60,437
36,407
19,842
16,565
13,755
10,275

69,245
42,036
22,871
19,165
15,438
11,771

79,186
46,697
25,135
21,562
16,353
16,136

6,785
3,854
2,113
1,741
1,305
1,626

7,045
3,950
2,152
1,798
1,355
1,740

7,434
4,075
2,317
1,758
1,445
1,914

7,343
4,139
2,305
1,834
1,439
1,765

6,872
3,690
2,006
1,684
1,301
1,881

6,932
3,762
2,038
1,724
1,364
1,806

7,300
3,851
2,069
1,782
1,386
2,063

45 R evolving.......................................................................
46 Commercial banks ...................................................
47
R e ta ile rs.....................................................................
48
Gasoline companies .................................................

81,348
34,241
32,622
14,485

96,090
45,366
34,964
15,760

111,546
55,527
38,523
17,496

10,641
5,318
3,553
1,770

10,419
5,013
3,601
1,805

10,665
5,148
3,642
1,875

10,851
5,283
3,657
1,911

10,688
5,034
3,702
1,952

10,998
5,343
3,677
1,978

10,926
5,126
3,776
2,024

49 Mobile home .................................................................
50 Commercial banks ...................................................
51
Finance companies ...................................................
52 Savings and loans .....................................................
53 Credit u n io n s .............................................................

5,341
3,079
831
1,305
126

5,126
3,278
812
885
151

4,868
3,440
559
708
161

363
249
54
50
10

382
271
42
57
12

399
272
54
60
13

372
278
47
39
8

400
276
49
63
12

413
288
41
72
12

407
256
66
73
12

54 O th e r...............................................................................
55 Commercial banks ...................................................
56 Finance companies ...................................................
57
Credit u n io n s .............................................................
58
R etailers.....................................................................
59 Savings and loans .....................................................
60 Mutual savings banks ...............................................

75,012
25,524
24,934
13,711
6,907
2,364
1,572

84,128
28,112
28,492
15,793
7,110
2,832
1,789

90,796
30,908
30,803
16,227
7,021
3,866
1,971

7,407
2,426
2,690
1,260
506
377
148

7,841
2,555
2,986
1,253
502
392
153

7,511
2,441
2,774
1,258
498
386
154

8,097
2,613
3,057
1,362
500
410
155

7,192
2,552
2,328
1,264
496
395
157

7,187
2,367
2,478
1,281
504
396
161

7,557
2,521
2,662
1,308
488
410
168

31 Total ...............................................................................
By m ajor holder

32
33
34
35
36
37
38

Commercial banks .......................................................
Finance companies .......................................................
Credit u n io n s .................................................................
Retailers1 .......................................................................
Savings and loans .........................................................
Gasoline companies .....................................................
Mutual savings banks ...................................................
By major type o f credit

1.
Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.




A42
1.58

Domestic Financial Statistics □ March 1981
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1979

1978
Transaction category, sector

1975

1976

1977

1978

1979

1980

1980
HI

H2

HI

H2

HI

H2

Nonfinancial sectors
1 Total funds raised .........................................................
2 Excluding eq u itie s.........................................................

210.8
200.7

271.9
261.0

338.5
335.3

400.4
398.3

394.9
390.6

363.3
349.8

384.8
387.4

416.0
409.2

380.5
377.7

408.2
402.3

321.1
313.0

405.6
386.5

85.4
85.8
-.4
125.4
10.1
115.3
112.1
9.9
102.2
98.4
16.1
27.2

69.0
69.1
- .1
202.8
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8

56.8
57.6
- .9
281.7
3.1
278.6
267.8
2.7
265.1
175.6
23.7
21.0

53.7
55.1
- 1 .4
346.7
2.1
344.6
314.4
2.6
311.8
196.6
28.3
20.1

37.4
38.8
- 1 .4
357.6
4.3
353.2
336.4
3.5
333.0
199.9
18.9
21.2

79.2
79.8
- .6
284.1
13.6
270.6
254.2
11.4
242.8
175.6
22.2
27.6

61.4
62.3
- .9
323.4
- 2 .6
326.0
302.8
-1 .8
304.6
188.3
27.8
20.6

46.0
47.9
- 1 .9
370.0
6.8
363.2
326.1
7.0
319.1
205.0
28.7
19.6

28.6
30.9
- 2 .3
351.9
2.8
349.1
338.6
2.8
335.8
198.8
16.0
22.4

46.1
46.6
- .5
362.1
5.9
356.2
333.0
4.1
328.9
201.1
21.8
19.9

64.5
65.2
- .6
256.5
8.0
248.5
227.0
6.0
221.0
169.1
18.0
33.4

93.8
94.4
- .6
311.7
19.1
292.7
281.5
16.8
264.7
182.1
26.4
21.9

39.5
*
11.0
4.6
3.8
9.7
-1 2 .3
- 2 .6
9.0

63.6
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4

96.3
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0

104.6
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2

109.1
8.9
25.7
16.2
133.0
44.2
50.6
10.9
27.3

81.5
8.7
21.6
14.0
67.2
3.1
37.9
5.8
20.4

100.1
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8

109.1
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5

109.8
8.1
26.0
16.6
137.0
48.3
48.2
12.0
28.4

108.5
9.7
25.4
15.9
127.8
39.0
52.9
9.7
26.2

73.6
6.5
22.1
15.5
51.9
- 6 .4
9.6
29.7
18.9

89.3
11.0
21.1
12.4
82.5
12.5
66.1
-1 8 .1
22.0

By sector and instrument

3 U.S. governm ent...........................................................
4 Treasury securities ...................................................
5 Agency issues and mortgages ................................
6 All other nonfinancial s e c to rs ....................................
7
Corporate equities ...................................................
8 Debt instrum ents......................................................
9
Private domestic nonfinancial sectors ..................
10
Corporate equities ...............................................
11
Debt instrum ents...................................................
12
Debt capital instruments ................................
13
State and local obligations..........................
14
Corporate bonds ..........................................
Mortgages
15
Home .........................................................
16
Multifamily residential ............................
17
Commercial ...............................................
18
Farm ...........................................................
19
Other debt instruments ..................................
20
Consumer credit ...........................................
21
Bank loans n.e.c.............................................
22
Open market paper ....................................
23
O th e r ...............................................................
24
25
26
27
28
29

By borrowing sector ............................................
State and local governments ..........................
H ouseholds.........................................................
Farm ...................................................................
Nonfarm noncorporate....................................
C o rp o rate...........................................................

112.1
13.7
49.7
8.8
2.0
37.9

182.0
15.2
90.5
10.9
4.7
60.7

267.8
20.4
139.9
14.7
12.9
79.9

314.4
23.6
162.6
18.1
15.4
94.8

336.4
15.5
164.9
25.8
15.9
114.3

254.2
20.7
100.8
19.0
12.5
101.1

302.8
21.0
156.1
15.3
16.4
93.9

326.1
26.1
169.1
20.8
14.4
95.7

338.6
13.0
167.6
23.5
15.5
118.9

333.0
18.0
161.2
28.1
15.9
109.7

227.0
16.2
89.8
21.1
9.0
90.9

281.5
25.3
111.9
16.9
16.0
111.3

30
31
32
33
34
35
36

F o re ig n .......................................................................
Corporate equities ...............................................
Debt instrum ents...................................................
Bonds .................................................................
Bank loans n.e.c.................................................
Open market paper .........................................
U.S. government loans ..................................

13.3
.2
13.2
6.2
3.9
.3
2.8

20.8
.3
20.5
8.6
6.8
1.9
3.3

13.9
.4
13.5
5.1
3.1
2.4
3.0

32.3
- .5
32.8
4.0
18.3
6.6
3.9

21.2
.9
20.3
3.9
2.3
11.2
3.0

29.9
2.2
27.7
.8
11.8
10.1
5.0

20.6
- .8
21.4
5.0
9.3
3.6
3.6

43.9
-.2
44.1
3.0
27.3
9.6
4.2

13.3
*
13.3
3.0
1.0
6.1
3.1

29.1
1.7
27.3
4.7
3.5
16.3
2.8

29.5
2.1
27.5
2.0
4.4
15.7
5.4

30.3
2.3
28.0
- .4
19.3
4.5
4.6

Financial sectors
37 Total funds raised ............................................

12.7

24.1

54.0

81.4

88.5

70.8

80.7

82.1

86.3

90.7

54.0

87.6

13.5
2.3
10.3
.9
-.8
.6
- 1 .4
2.9
2.3
-3 .7

18.6
3.3
15.7
-.4
5.5
1.0
4.4
5.8
2.1
-3 .7

26.3
7.0
20.5
- 1 .2
27.7
.9
26.9
10.1
3.1
- .3

41.4
23.1
18.3

52.4
24.3
28.1

47.5
24.3
23.2

38.5
21.9
16.6

45.8
21.5
24.2

59.0
27.0
32.0

45.8
25.1
20.7

49.2
23.5
25.7

40.0
1.7
38.3
7.5
.9
2.8

36.1
2.3
33.8
7.8
- 1 .2
- .4

23.3
3.4
19.8
7.2
-.9
1.0

42.2
2.2
40.0
8.5
2.1
2.5

44.3
24.3
20.1
37.8
l.l
36.7
6.4
- .3
3.1

40.5
2.0
38.4
8.7
- .5
- .7

31.7
2.5
29.2
7.0
- 1 .9
- .2

8.1
3.1
5.1
10.3
- 6 .8
1.1

38.4
3.8
34.6
4.0
5.0
1.0

1.1
-4 .0

2.2
- 2 .0

9.6
4.3

14.6
12.5

18.4
9.2

5.4
7.1

13.5
13.2

15.7
11.8

23.0
7.8

13.8
10.5

- 3 .6
4.1

14.4
10.2

3.2
10.3
-.8
1.2
.3
-2 .3
1.0
.5
- 1 .4
- .1

2.9
15.7
5.5
2.3
-.8
.1
.9
6.4
-2 .4
-1 .0

5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
- 2 .2
-.9

23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
- 1 .0
- 1 .0

24.3
28.1
36.1
1.6
4.5
11.4
1.0
18.9
-.4
- 1 .0

24.3
23.2
23.3
.6
5.6
6.4
.8
8.8
-.9
2.0

21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
- 1 .0
- .5

24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
- 1 .0
- 1 .5

21.5
24.2
40.5
1.3
6.2
9.9
1.0
23.5
- .6
-1 .0

27.0
32.0
31.7
1.8
2.9
12.9
.9
14.3
- .1
- .9

25.1
20.7
8.1
.8
4.5
- 4 .7
.8
6.8
- 1 .4
1.4

23.5
25.7
38.4
.3
6.6
17.6
.7
10.8
- .3
2.7

By instrument

38 U.S. government related ................................
39 Sponsored credit agency securities............
40 Mortgage pool securities ............................
41
Loans from U.S. government ....................
42 Private financial sectors ..................................
43
Corporate equities ....................................
44
Debt instrum ents..........................................
45
Corporate bonds ......................................
46
M ortgages................................................
47
Bank loans n.e.c.......................................
48
49

Open market paper and repurchase
agreem ents......................................
Loans from Federal Home Loan Banks
By sector

50 Sponsored credit agencies ............................
51 Mortgage pools ..............................................
52 Private financial sectors ................................
53
Commercial banks .....................................
54
Bank affiliates ............................................
55
Savings and loan associations ..................
56 Other insurance co m p an ies......................
57
Finance companies ....................................
58
R E IT s ..........................................................
59
Open-end investment companies ............

All sectors
60 Total funds raised, by instrument ............................

223.6

295.9

392.5

481.8

483.4

434.1

465.5

498.1

466.7

498.9

375.0

493.2

61 Investment company shares ......................................
62 Other corporate equities .............................................
63 Debt instrum ents...........................................................
64
U.S. government securities ....................................
65
State and local obligations......................................
66
Corporate and foreign bonds ................................
67
M ortgages...................................................................
68 Consumer credit .......................................................
69
Bank loans n.e.c.........................................................
FRASER
70
Open market paper and RPs ................................
71
Other loans ...............................................................

- .1
10.8
212.9
98.2
16.1
36.4
57.2
9.7
-1 2 .2
-1 .2
8.7

-1 .0
12.9
284.1
88.1
15.7
37.2
87.0
25.6
7.0
8.1
15.3

- .9
4.9
388.5
84.3
23.7
36.1
133.9
40.6
29.8
15.0
25.2

- 1 .0
4.7
478.1
95.2
28.3
31.6
149.1
50.6
58.4
26.4
38.6

- 1 .0
7.6
476.8
89.9
18.9
32.9
158.6
44.2
52.5
40.5
39.5

2.0
15.0
417.1
126.8
22.2
35.6
124.8
3.1
50.7
21.4
32.6

-.5
.1
465.9
100.0
27.8
34.2
141.9
50.1
54.9
22.4
34.6

- 1 .5
9.4
490.2
90.4
28.7
29.1
156.3
51.0
61.8
30.4
42.5

- 1 .0
5.8
461.9
74.5
16.0
34.1
159.8
48.3
48.6
41.1
39.4

-.9
9.3
490.5
105.2
21.8
31.5
157.4
39.0
56.2
39.8
39.5

1.4
9.8
363.9
110.5
18.0
45.7
110.8
-6 .4
15.0
41.9
28.3

2.7
20.2
470.4
143.2
26.4
25.5
138.8
12.5
86.4
.9
36.8

Digitized for


Flow o f Funds
1.59

A43

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates

1 Total funds advanced in credit markets to nonfinancial
sectors .............................................................................

1975

1976

1977

1978

1979

1980

1979

1978
Transaction category, or sector

1980
HI

H2

HI

H2

HI

H2

200.7

261.0

335.3

398.3

390.6

349.8

387.4

409.2

377.7

402.3

313.0

386.5

44.6
22.5
16.2
- 4 .0
9.8

54.3
26.8
12.8
- 2 .0
16.6

85.1
40.2
20.4
4.3
20.2

109.7
43.9
26.5
12.5
26.9

80.1
2.0
36.1
9.2
32.8

95.8
22.3
32.0
7.1
34.5

102.8
43.7
22.2
13.2
23.7

116.6
44.0
30.7
11.8
30.1

47.6
-2 2 .1
32.6
7.8
29.2

112.5
26.2
39.6
10.5
36.3

101.7
24.9
33.5
4.1
39.3

89.9
19.7
30.4
10.2
29.6

15.1
14.8
8.5
6.1
13.5

8.9
20.3
9.8
15.2
18.6

11.8
26.8
7.1
39.4
26.3

20.4
44.6
7.0
37.7
41.4

22.5
57.5
7.7
-7 .7
52.4

26.0
48.6
4.5
16.7
47.5

19.4
39.4
13.4
30.6
38.5

21.4
49.8
.5
44.9
44.3

23.8
49.9
.9
-2 7 .0
45.8

21.3
65.2
14.5
11.7
59.0

29.6
43.6
14.6
13.9
45.8

22.5
53.6
- 5 .6
19.5
49.2

169.7
75.7
16.1
32.8
23.2
17.9
-4 .0

225.4
61.3
15.7
30.5
52.6
63.3
- 2 .0

276.5
44.1
23.7
22.5
83.3
107.3
4.3

330.0
51.3
28.3
22.5
88.2
152.2
12.5

362.9
87.9
18.9
25.6
81.8
157.9
9.2

301.5
104.6
22.2
25.5
58.1
98.2
7.1

323.2
56.3
27.8
24.1
87.1
141.1
13.2

336.9
46.4
28.7
20.9
89.5
163.3
11.8

375.9
96.6
16.0
26.9
85.1
159.1
7.8

348.8
79.1
21.8
24.3
78.5
155.6
10.5

257.1
85.6
18.0
32.4
46.5
78.6
4.1

345.8
123.5
26.4
18.7
69.8
117.7
10.2

19 Credit market funds advanced by private financial
institutions .....................................................................
20 Commercial ban k in g .........................................................
21
Savings institutions ...........................................................
22
Insurance and pension fu n d s ..........................................
23
Other fin a n ce.....................................................................

122.5
29.4
53.5
40.6
-1 .0

190.1
59.6
70.8
49.9
9.8

257.0
87.6
82.0
67.9
19.6

296.9
128.7
75.9
73.5
18.7

292.5
121.1
56.3
70.4
44.7

265.6
103.5
57.6
76.4
28.1

301.7
132.5
75.8
76.9
16.6

292.0
125.0
75.9
70.2
20.9

307.5
124.6
57.7
75.4
49.8

277.4
117.6
54.9
65.5
39.6

229.6
57.2
31.4
84.6
56.3

301.8
149.9
83.8
68.2
- .1

24 Sources of funds ...................................................................
25
Private domestic deposits ...............................................
26
Credit market borro w in g .................................................
27
Other sources.....................................................................
28
Foreign fu n d s .................................................................
29
Treasury balances .........................................................
30
Insurance and pension reserves ................................
31
Other, n e t .......................................................................

122.5
92.0
- 1 .4
32.0
- 8 .7
-1 .7
29.7
12.7

190.1
124.6
4.4
61.0
-4 .6
- .1
34.5
31.2

257.0
141.2
26.9
89.0
1.2
4.3
49.4
34.1

296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3

292.5
136.7
33.8
122.0
26.3
.4
49.0
46.3

265.6
163.9
19.8
81.9
-2 0 .0
-2 .0
58.5
45.4

301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6

292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0

307.5
121.7
38.4
147.3
49.4
5.1
53.9
38.9

277.4
151.6
29.2
96.6
3.2
-4 .3
44.0
53.7

229.6
147.7
5.1
76.8
-1 8 .1
-2 .5
59.6
37.9

301.8
180.1
34.6
87.1
-2 1 .8
- 1 .5
57.4
53.1

32 Direct lending in credit m a rk e ts ........................................
33 U.S. government securities .............................................
34 State and local obligations...............................................
35
Corporate and foreign bonds ........................................
36
Commercial p a p e r.............................................................
37
O th e r...................................................................................

45.8
24.1
8.4
8.4
- 1 .3
6.2

39.7
16.1
3.8
5.8
1.9
12.0

46.3
23.0
2.6
-3 .3
9.5
14.5

71.5
33.2
4.5
-1 .4
16.3
18.8

104.2
57.8
- 2 .5
11.1
10.7
27.1

55.7
30.7
-1 .8
5.4
-2 .4
23.9

61.4
32.1
7.0
-3 .7
8.2
17.8

81.6
34.4
2.0
1.0
24.4
19.8

106.8
64.1
-2 .3
7.8
12.5
24.7

100.5
51.5
- 2 .7
14.2
9.0
28.5

32.6
13.2
- 2 .9
8.3
- 6 .2
20.2

78.7
48.2
- .8
2.4
1.3
27.6

38 Deposits and currency .........................................................
39
Security R P s .......................................................................
40 Money market fund shares .............................................
41 Time and savings accounts .............................................
42
Large at commercial banks ........................................
43
Other at commercial b a n k s ........................................
44
At savings institutions .................................................
45
M oney.................................................................................
46
Demand d eposits...........................................................
47
C urrency.........................................................................

98.1
.2
1.3
84.0
-1 5 .8
40.3
59.4
12.6
6.4
6.2

131.9
2.3
113.5
-1 3 .2
57.6
69.1
16.1
8.8
7.3

149.5
2.2
.2
121.0
23.0
29.0
69.0
26.1
17.8
8.3

151.8
7.5
6.9
115.2
45.9
8.2
61.1
22.2
12.9
9.3

144.7
6.6
34.4
84.7
.4
39.3
45.1
18.9
11.0
7.9

173.5
4.7
29.2
131.8
12.7
62.9
56.2
7.8
-1 .8
9.6

148.7
9.8
6.1
110.7
33.9
18.4
58.5
22.1
11.6
10.5

154.8
5.1
7.7
119.8
57.9
- 1 .9
63.8
22.3
14.2
8.1

131.1
18.5
30.2
71.4
-2 5 .3
41.3
55.4
10.9
1.6
9.3

158.1
-5 .3
38.6
97.9
26.0
37.3
34.7
26.8
20.3
6.5

156.7
5.3
61.9
91.9
-1 2 .0
60.6
43.4
- 2 .4
-1 1 .4
9.0

190.1
4.0
-3 .4
171.7
37.4
65.2
69.1
17.9
7.8
10.1

48 Total of credit market instruments, deposits and
currency .........................................................................

143.9

171.6

195.8

223.3

248.9

229.1

210.1

236.4

237.9

258.7

189.3

268.8

49
50
51

Public support rate (in percent) ....................................
Private financial intermediation (in percent) ..............
Total foreign f u n d s ...........................................................

22.2
72.2
-2 .6

20.8
84.3
10.6

25.4
93.0
40.5

27.5
90.0
44.0

20.5
80.6
18.6

27.4
88.1
- 3 .3

26.5
93.4
36.3

28.5
86.7
51.8

12.6
81.8
22.4

28.0
79.5
14.9

32.5
89.3
- 4 .2

23.3
87.3
- 2 .3

M e m o : Corporate equities not included above
52 Total net issues .....................................................................
53
Mutual fund s h a re s ...........................................................
54
Other equities ...................................................................

10.7
- .1
10.8

11.9
-1 .0
12.9

4.0
-.9
4.9

3.7
- 1 .0
4.7

6.6
-1 .0
7.6

17.0
- 2 .0
15.0

-.4
- .5
.1

7.9
-1 .5
9.4

4.8
- 1 .0
5.8

8.4
-.9
9.3

11.1
1.4
9.8

22.8
2.7
20.2

55 Acquisitions by financial in stitu tio n s................................
56 Other net purchases .............................................................

9.6
1.1

12.3
- .4

7.4
- 3 .4

7.6
- 3 .8

15.7
- 9 .1

18.7
- 1 .7

.4
-.8

14.7
- 6 .8

12.5
- 7 .7

18.9
-1 0 .5

16.7
- 5 .6

20.7
2.1

By public agencies and foreign

2 Total net advances ...............................................................
3 U.S. government securities .............................................
4
Residential mortgages .....................................................
5 FHLB advances to savings and loans ..........................
6
Other loans and secu rities...............................................
Total advanced, by sector

7
8
9
10
11

U.S. governm ent...................................................................
Sponsored credit agencies ...................................................
Monetary authorities ...........................................................
F o re ig n ...................................................................................
Agency borrowing not included in line 1 ........................
Private dom estic funds advanced

12 Total net advances ...............................................................
13 U.S. government securities ............................................
14 State and local obligations...............................................
15 Corporate and foreign bonds ........................................
16 Residential mortgages .....................................................
17
Other mortgages and loans .............................................
18 L e s s : Federal Home Loan Bank ad v an ces..................
Private financial intermediation

Private dom estic nonfinancial investors

N o t es

1.
2.
6.
11.
12.
17.
25.
26.
28.
29.

b y lin e n u m b e r .

Line 2 of p. A42.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines
3, 13, 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
Includes farm and commercial mortgages.
Sum of lines 39, 40, 41, and 46.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
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.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. Includes issues by financial institutions.
N o t e . Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.

A44
2.10

Domestic Nonfinancial Statistics □ March 1981
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1980
Measure

1978

1979

June
1 Industrial production1 .........................................

1981

1980
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan .p

Feb.6

146.1

152.5

147.1

141.5

140.4

141.8

141.1

146.9

149.4

150.9

151.5

150.8

144.8
135.9
149.1
132.8
154.1
148.3

150.0
147.2
150.8
142.2
160.5
156.4

146.7
145.4'
145.5
145.1
151.9
147.6r

142.5
142.4
142.1
142.6
143.5
140.0

142.8
142.8
142.0
142.9
144.4
136.5

143.8
143.9
142.7
142.9
147.6
138.6

145.3
143.9
144.3
143.2
150.6
142.4

147.2
145.8
146.6
144.8
152.4
146.4

148.7
147.5'148. O'
146.7'153.5'
150.5'

149.9
148.2
147.7
148.9
156.1
152.4

150.1
148.3
147.4
149.4
156.9
153.8

149.1
147.6
146.5
149.1
154.7
153.3

8 M anufacturing.......................................................

146.8

153.6

146.6

140.3

139.1

140.6

143.4

145.4

149.1

150.6

151.0

150.2

Capacity utilization (percent)1-2
9
M anufacturing...................................................
10 Industrial materials in d u stries........................

84.4
85.6

85.7
87.4

79.0
79.8

75.7
75.7

74.9
73.7

75.5
74.6

76.7
76.4

78.2
78.4

79.4
80.4

79.9
81.2

80.0
81.7

79.3
81.2

M arket groupings

2 Products, t o t a l .......................................................
3 Final, total .........................................................
4
Consumer goods ...........................................
5
Equipment .....................................................
6
Interm ediate.......................................................
7 M aterials.................................................................
Industry groupings

11 Construction contracts (1972 = 100)3 ..............

174.1

185.6

161.8

145.0

148.0

192.0

163.0

167.0

210.0

193.0

185.0

n.a.

12 Nonagricultural employment, total4 ................
13
Goods-producing, total ..................................
14
Manufacturing, t o t a l .....................................
15
Manufacturing, production-worker ..........
16 Service-producing .............................................
17 Personal income, total .........................................
18 Wages and salary disbursements ..................
19
M anufacturing...............................................
20 Disposable personal income5 ............................

131.8
109.8
105.4
103.0
143.8
273.3
258.8
223.1
268.7

136.6
113.7
108.3
105.4
149.2
308.5
289.5
248.6
301.5

137.8
110.9
104.7
n.a.
152.5
342.9
314.7
261.5
334.5

136.8
109.1
102.9
97.4
152.1
337.6
309.9
254.2

136.6
108.0
102.0
96.2
152.3
343.0
310.6
254.3

137.0
108.6
102.5
97.0
152.6
345.9
314.4
258.5
338.0

137.4
109.3
103.1
97.7
152.7
350.1
317.8
262.9

137.9
110.0
103.7
100.7
153.1
354.7
323.6
267.6

138.2
110.7
104.3
99.1
153.3
358.3
328.0
273.1
348.3'

138.5
111.1
104.4
99.2
153.5
361.4
330.5
275.8

139.0
111.7
104.6
99.4
154.0
364.9
335.3
280.0

139.1
111.4
104.7
99.7
154.3
n.a.
n.a.
n.a.

21 Retail sales6 ...........................................................

253.8

281.6

300.0''

290.4

299.1

301.0

306.0

308.0

313.8'

315.8

325.1

327.9

Prices7
22 C onsum er...........................................................
23
Producer finished g o o d s ...................................

195.4
194.6

217.4
216.1

246.8
246.9

247.6
244.9

247.8
249.3

249.4
251.4

251.7
251.4

253.9
255.4

256.2
255.6

258.4
256.9

260.5
259.8

n.a.
262.4

1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Departm ent, and Department of Com­
merce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Em ploym ent and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey o f Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.

2.11

6. Based on Bureau of Census dat a published in Survey o f Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
N ote . Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey o f Current Business.

Figures for industrial production for the last two months are preliminary and
estimated, respectively.

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1980

1980

1980

Series
Q1

Q2

03

Q4

Output (1967 = 100)

Q1

Q2

Q3

Q4

Capacity (percent of 1967 output)

02

Q1

03

Q4

Utilization rate (percent)

1 Manufacturing.......................................................
2 Primary processing ...............................................
3 Advanced processing ...........................................

152.8
160.5
148.8

143.9
145.0
143.3

141.0
139.6
141.8

148.7
153.0
146.4

183.3
188.5
180.5

184.8
190.0
182.0

186.3
191.5
183.5

187.8
193.0
185.0

83.4
85.1
82.5

77.9
76.3
78.7

75.7
72.9
77.3

79.2
79.3
79.1

4 Materials.................................................................

156.3

145.1

139.2

149.8

182.8

184.3

185.8

187.2

85.5

78.7

74.9

80.0

131.5
86.6
161.9
165.6
113.4
142.9
197.9
129.6

145.1
109.9
175.5
182.6
113.1
149.4
226.8
129.2

187.2
140.7
199.8
208.3
138.8
154.7
260.4
151.1

188.6
140.8
202.0
211.0
139.2
156.0
264.6
151.8

190.0
140.9
204.3
213.7
139.6
157.4
268.7
152.6

191.5
141.0
206.5
216.2
140.0
158.8
272.9
153.1

82.8
83.2
89.7
90.0
86.9
94.5
89.7
86.6

74.6
71.4
82.2
81.5
83.7
91.0
78.7
85.6

69.2
61.5
79.2
77.5
81.2
90.7
73.6
85.0

75.8
78.0
85.0
84.5
80.8
94.0
83.1
84.4

5 Durable g o o d s .......................................................
6 Metal materials .................................................
7 Nondurable g o o d s .................................................
8 Textile, paper, and chem ical..........................
9
T e x tile.............................................................
10
Paper ...............................................................
11
C hem ical.........................................................
12 Energy m a te ria ls ...................................................




155.0
117.1
179.3
187.5
120.6
146.1
233.6
130.8

140.6
100.6
166.0
171.9
116.4
142.1
208.3
130.0

A45

Labor Market
2.11

Continued
Previous cycle1

Latest cycle2

1980

Low

Jan.

1980

1981

Series
High

Low

High

Aug.

Sept.

Oct.

N ov/

D ec/

Jan/

Feb.

Capacity utilization rate (percent)
13 M anufacturing.......................................................

88.0

69.0

87.2

74.9

83.9

75.5

76.7

78.2

79.4

79.9

80.0

79.3

14
15

Primary processing ...........................................
Advanced processing ......................................

93.8
85.5

68.2
69.4

90.1
86.2

70.9
77.1

86.4
82.7

72.5
77.1

75.2
77.7

77.6
78.5

79.6
79.2

80.7
79.6

80.8
79.7

79.8
79.0

16 M aterials.................................................................
17 Durable g o o d s ...................................................
18
Metal materials .............................................

92.6
91.5
98.3

69.4
63.6
68.6

88.8
88.4
96.0

73.7
68.0
58.4

86.1
83.6
84.1

74.6
69.1
62.2

76.4
70.4
63.9

78.4
73.5
71.5

80.4
76.5
81.4

81.2
77.3
81.0

81.7
78.0
81.5

81.2
77.2
80.3

19
20
21
22
23

Nondurable g o o d s .............................................
Textile, paper, and chem ical......................
T e x tile.........................................................
Paper ...........................................................
C hem ical.....................................................

94.5
95.1
92.6
99.4
95.5

67.2
65.3
57.9
72.4
64.2

90.9
91.4
90.1
97.6
91.2

76.8
74.5
79.5
88.1
69.6

90.9
91.2
86.6
96.0
91.2

78.2
76.4
79.5
90.2
72.5

82.7
81.6
82.0
93.9
78.7

84.4
83.8
82.1
93.0
82.1

84.3
83.7
80.7
94.1
82.0

86.3
85.9
79.5
94.9
85.2

86.2
85.6
80.0
92.5
85.3

85.9
85.3
79.5
91.4
85.3

24

Energy materials ...............................................

94.6

84.8

88.3

83.1

86.2

85.2

84.1

83.1

85.5

84.5

85.2

85.8

1. Monthly high 1973; monthly low 1975.
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.

2.12

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1980
C ategory

1978

1979

1981

1980
A u g.

S ept.

O ct.

N ov/

D ec/

Jan/

Feb .

H o u seh o ld Su r ve y D ata

1 Noninstitutional population1 ......................

161,058

163,620

166,246

166,578

166,789

167,005

167,201

167,396

167,585

167,747

2 L abor force (in clu d in g A r m ed F o r c e s )1 . .
3 C ivilian labor force ..................................

102,537
100,420

104,996
102,908

106,821
104,719

107.059
104,945

107,101
104,980

107,288
105,167

107.404
105.285

107.191
105,067

107,668
105,543

107,802
105,681

91,031
3,342

93,648
3,297

93,960
3,310

93.793
3,210

93,781
3.399

93,887
3,319

93.999
3,340

93,888
3,394

94,294
3,403

94,646
3,281

6,047
6.0
58,521

5,963
5.8
58,623

7.448
7.1
59.425

7.942
7.6
59,519

7,800
7.4
59,687

7,961
7.6
59,717

7,946
7.5
59,797

7,785
7.4
60,205

7.847
7.4
59,917

7,754
7.3
59,946

86,697

89,886

90,652

90,142

90,384

90,710

90,961

91,125

91,499

91,550

20,505
851
4,229
4,923
19,542
4,724
16,252
15,672

21,062
960
4,483
5,141
20,269
4,974
17,078
15,920

20.365
1,025
4,468
5,155
20.571
5,162
17,736
16,171

19,940
1.013
4.359
5,129
20.589
5.180
17.788
16.144

20,044
1,028
4,404
5,124
20,620
5,194
17,861
16,109

20,157
1,037
4,442
5,147
20,641
5,214
17,913
16,159

20,282
1,054
4,475
5,132
20,660
5,225
17,969
16,164

20,312
1,072
4.508
5,137
20,638
5,245
18,068
16,145

20,350
1,084
4,608
5,148
20,782
5,265
18,135
16,127

20,370
1,090
4,500
5,147
20,892
5,275
18,164
16,112

Em ploym ent

4
5

N on agricu ltu ral in d u stries2 ....................
A g r ic u lt u r e .............................................

Unemployment

6
N u m b e r ...................................................
7
R ate (p ercen t o f civilian labor fo r ce)
8 N o t in labor force .........................................
E st a b l ish m e n t S u r v e y D a t a

9 Nonagricultural payroll employment3 . . . .
10
11
12
13
14
15
16
17

M a n u fa c t u r in g ........................................................
M in in g .............................................................
C on tract con stru ction ..................................
T ran sportation and p ub lic u t i l i t i e s ............
T rade ...............................................................
F inan ce .......................................................................
S e r v ic e .............................................................
G o v e r n m e n t .............................................................

1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data from Em ploym ent and Earnings (U.S. Department of La­
bor).
2. Includes self-employed, unpaid family, and domestic service workers.




3.
Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family work­
ers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Em ploym ent and Earnings (U.S. Department of Labor).

A46
2.13

Domestic Nonfinancial Statistics □ March 1981
INDUSTRIAL PRODUCTION

Indexes and Gross Value'

Monthly data are seasonally adjusted.

Grouping

1967
pro­
por­
tion

1980
Aver­
age

1980
Feb.

Apr.

May

June

July

1981

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.P

Feb.6

Index (1967 = 100)
M ajo r M a r k e t

1 Total index ....................................................

100.00

147.1

152.6

148.3

144.0

141.5

140.4

141.8

144.1

146.9

149.4

150.9

151.5

150.8

2 Products ........................................................
3 Final products ..........................................
4
Consumer goods ..................................
5
Equipment ............................................
6
Intermediate products ............................
7 M aterials........................................................

60.71
47.82
27.68
20.14
12.89
39.29

146.7
145.4
145.5
145.1
151.9
147.6

150.1
147.7
148.4
146.6
159.2
156.5

146.6
145.4
145.3
145.6
150.8
151.0

143.7
143.1
142.4
144.0
146.2
144.3

142.5
142.3
142.1
142.6
143.5
140.0

142.8
142.4
142.0
142.9
144.5
136.5

143.8
142.8
142.7
142.9
147.6
138.6

145.3
143.9
144.3
143.2
150.6
142.4

147.2
145.8
146.6
144.8
152.4
146.4

148.7
147.5
148.0
146.7
153.5
150.5

149.9
148.2
147.7
148.9
156.1
152.4

150.1
148.3
147.4
149.4
156.9
153.8

149.1
147.6
146.5
149.1
154.7
153.3

8 Durable consumer g o o d s ............................
9 Automotive products ..............................
10
Autos and utility vehicles ..................
11
A u to s..................................................
12
Auto parts and allied goods ..............

7.89
2.83
2.03
1.90
80

136.5
132.7
109.9
103.4
190.4

144.5
142.1
124.6
116.8
186.7

136.3
126.3
102.3
97.1
187.2

128.8
118.5
92.6
88.4
184.0

128.2
121.6
97.1
95.7
183.7

128.3
129.2
106.4
105.2
186.9

128.6
121.5
94.1
91.3
191.1

132.7
130.6
105.5
98.0
194.2

139.6
141.8
120.2
110.7
196.8

142.9
145.3
124.3
114.3
198.6

141.1
139.1
115.9
105.3
198.0

138.3
127.2
99.7
90.0
196.9

137.1
129.5
103.4
96.0
196.0

13
14
15
16
17

Home g o o d s ..............................................
Appliances, A/C, and TV ..................
Appliances and T V ..........................
Carpeting and furniture ......................
Miscellaneous home goods ................

5.06
1.40
1.33
1.07
2.59

138.7
117.1
119.5
155.0
143.6

145.8
122.3
124.4
168.2
149.4

142.0
114.8
117.5
165.8
146.8

134.6
102.8
106.0
154.2
143.8

132.0
105.6
108.5
146.7
140.2

127.7
102.3
103.4
136.1
138.1

132.6
114.2
114.2
141.1
139.1

134.0
116.3
117.6
146.1
138.6

138.3
123.5
125.6
150.2
141.5

141.5
128.4
131.0
154.9
143.0

142.2
126.8
129.2
156.3
144.8

144.5
131.7
133.3
157.0
146.3

141.4
124.5

18 Nondurable consumer g o o d s ......................
19 Clothing ....................................................

19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45

149.2
126.8
155.3
147.0
164.9
208.7
122.9
151.9
171.2

150.0
130.7
155.4
146.5
165.6
211.8
122.5
150.9
162.5

148.8
128.7
154.5
146.2
164.0
206.9
120.4
152.8
172.5

147.7
127.9
153.2
146.1
161.5
203.0
120.2
150.1
169.8

147.6
126.7
153.4
146.2
161.7
202.6
120.6
150.9
170.1

147.4
122.5
154.3
146.4
163.6
204.3
121.5
153.5
176.5

148.3
123.6
155.1
146.0
165.7
209.3
122.0
153.9
178.6

148.9
122.1
156.3
147.0
167.1
213.0
122.3
154.0
178.3

149.4
125.1
156.1
147.7
165.9
210.2
124.8
151.5
175.0

150.1
127.3
156.4
148.0
166.2
210.0
127.3
150.8
171.8

150.4
124.1
157.6
149.1
167.6
212.5
127.0
152.2
171.2

151.0

150.2

158.3
148.8
169.4
215.3
128.4
153.5

157.8

12.63
6.77
1.44
3.85
1.47

173.3
157.0
241.3
128.4
149.0

176.0
159.2
231.6
133.1
156.4

174.2
159.3
239.5
131.9
152.3

171.9
157.8
242.2
129.5
149.1

169.8
155.2
241.0
126.1
147.1

170.1
154.8
244.4
126.0
142.0

170.3
154.5
243.6
124.4
145.9

170.5
154.2
243.4
123.9
146.1

172.3
154.4
244.3
123.9
146.1

174.5
157.1
250.1
126.4
146.0

177.5
160.1
255.7
129.6
146.1

178.3
163.4
267.5
130.1
148.0

177.7
164.3
273.6
129.8
147.3

Commercial transit, f a r m ........................
Commercial ..........................................
T ra n sit....................................................
Farm ......................................................

5.86
3.26
1.93
67

192.1
237.5
139.4
123.2

195.5
238.7
145.4
129.9

191.5
235.6
143.0
116.4

188.2
232.0
136.3
124.6

186.7
228.8
138.0
121.6

187.8
229.0
140.9
122.5

188.4
233.6
138.4
112.7

189.4
237.2
133.8
116.8

192.8
242.0
135.0
120.2

194.7
244.0
136.6
121.9

197.6
248.3
137.9
123.1

195.5
247.9
132.2
122.7

193.2
246.1
128.0

36 Defense and space ......................................

7.51

97.8

97.2

97.6

97.2

96.8

97.2

96.9

97.4

98.5

99.8

100.7

101.0

101.2

6.42
6.47
1.14

140.7
162.9
173.6

153.8
164.5
171.7

139.4
162.0
174.8

133.0
159.4
172.0

128.5
158.4
168.7

128.6
160.4
172.1

133.1
161.9
173.7

137.4
163.6
175.2

140.5
164.3
174.6

142.8
164.2
174.0

144.7
167.5
179.2

146.9
166.8
175.9

143.1

40 Durable goods materials ............................
41
Durable consumer p a r ts ..........................
42
Equipment parts ......................................
43
Durable materials n.e.c.............................
44
Basic metal materials ..........................

20.35
4.58
5.44
10.34
5.57

143.1
109.0
187.3
135.0
104.6

154.8
119.9
198.9
147.0
116.4

148.2
110.6
195.8
139.8
109.3

139.8
100.1
190.8
130.5
100.0

133.8
96.0
182.5
125.0
95.9

129.0
93.9
177.6
118.9
84.7

131.3
98.1
176.3
122.4
89.4

134.2
104.2
176.0
125.4
91.7

140.4
110.8
178.5
133.4
102.0

146.6
115.5
184.0
140.6
114.4

148.4
116.3
185.8
142.9
115.0

150.2 ’ 148.8
116.9
114.9
189.2
188.4
144.3
142.9
115.4

45 Nondurable goods materials ......................
46 Textile, paper, and chemical materials .
47
Textile materials ..................................
48
Paper materials ....................................
49
Chemical materials ..............................
50
Containers, nondurable ..........................
51
Nondurable materials n.e.c......................

10.47
7.62
1.85
1.62
4.15
1.70
1.14

170.7
177.0
116.0
145.2
216.7
165.1
137.3

179.9
188.1
121.1
146.0
234.5
170.6
138.7

173.2
180.7
117.7
141.2
224.3
166.8
133.0

165.2
171.5
117.6
141.7
207.3
155.8
136.4

159.6
163.4
114.0
143.4
193.3
157.7
136.8

156.2
158.5
114.4
138.4
186.1
159.0
136.6

159.8
163.2
111.0
142.0
194.9
158.8
137.9

169.7
175.1
114.7
148.2
212.6
167.2
137.2

173.7
180.5
114.9
147.3
222.9
168.6
135.7

174.1
181.0
113.0
149.5
223.8
166.6
139.1

178.7
186.4
111.4
151.3
233.6
169.7
141.1

179.3
186.4
112.1
147.7
234.7
172.7
141.5

179.1
186.5

52 Energy m a terials..........................................
53
Primary energy ........................................
54
Converted fuel materials ........................

8.48
4.65
3.82

130.0
114.9
148.2

131.5
113.7
153.1

130.1
116.4
146.9

129.6
116.2
145.8

130.4
117.3
146.4

130.4
115.6
148.4

130.0
114.0
149.4

128.4
114.3
145.4

127.2
113.7
143.6

130.9
114.5
150.9

129.6
113.3
149.5

131.1
114.1
151.9

132.2

9.35
12.23
3.76
8.48

133.2
138.7
158.5
130.0

138.9
139.4
157.2
131.5

135.9
139.1
159.5
130.1

131.5
137.9
156.7
129.6

129.5
138.4
156.3
130.4

125.3
139.2
159.1
130.4

128.5
139.2
159.9
130.0

128.5
138.2
160.5
128.4

132.2
136.8
158.5
127.2

135.0
139.2
157.9
130.9

133.9
139.1
160.4
129.6

135.3
140.1
160.3
131.1

132.8
140.0

Consumer goods

21
22
23
24
25
26

Consumer roods and tobacco ............
Nonfood stap les....................................
Consumer chemical products ........
Consumer paper products ..............
Consumer energy products ............
Residential utilities ......................

145.0

168.5

Equipment

27 Business ........................................................
28
Industrial ..................................................
29
Building and mining ............................
30
M anufacturing......................................
31
Power ....................................................
32
33
34
35

Intermediate products

37 Construction su p p lie s ..................................
38 Business supplies..........................................
39 Commercial energy products ................
Materials

Supplementary groups

55 Home goods and clothing ..........................
56 Energy, total ................................................
57
Products ....................................................
58
M aterials....................................................

L
—
For notes see opposite page.




132.2

A47

Output
2.13 Continued
Grouping

SIC
code

1967
pro­
por­
tion

1980

1980
Avg.
Feb.

Apr.

May

June

July

1981

Aug.

Sept.

Oct.

Nov.

Dec.

Jan .p

Feb.*

Index (1967 = 100)
M ajor Industry
12.05
6.36
5.69
3.88
87.95
35.97
51.98

150.4
132.8
169.9
189.7
146.6
161.1
136.6

149.0
132.9
167.1
185.7
153.0
165.9
144.1

150.1
133.1
169.1
187.9
147.9
161.6
138.4

149.6
133.4
167.7
186.0
143.4
158.0
133.3

150.1
132.9
169.3
188.7
140.3
155.3
129.9

150.1
130.6
171.8
192.4
139.2
154.7
128.3

150.5
129.6
173.8
195.4
140.6
156.9
129.4

150.5
130.5
172.7
193.9
143.4
160.3
131.7

150.2
132.1
170.4
190.3
146.4
161.8
135.8

152.8
136.0
171.5
191.5
149.1
163.3
139.3

153.4
138.2
170.4
190.3
150.6
165.1
140.5

155.4
140.5
172.0

155.2
141.5
170.4

151.0
165.2
141.1

150.2
165.1
139.9

10
11.12
13
14

.51
.69
4.40
.75

109.1
146.7
133.6
131.7

136.6
136.0
130.4
142.3

123.5
143.4
132.5
133.1

120.8
145.0
133.9
128.1

120.0
150.0
133.2
123.9

83.1
149.8
134.3
123.7

71.2
154.9
133.6
123.5

73.1
148.9
134.7
128.2

90.8
145.7
135.4
129.0

107.2
151.6
137.4
133.0

122.1
155.3
137.4
137.8

122.6
150.3
140.7
142.7

156.2
142.5

148.9
119.6
132.5
121.5
143.6

148.3
117.4
132.6
123.8
147.1

148.6
119.1
133.0
126.7
152.3

149.4
123.1
133.8
127.5
153.0

150.5
125.1
135.0
128.0
154.4

151.4
118.8
133.2
125.0
156.5

151.1

155.4

154.1

140.3
206.8
130.5
253.1
67.2

141.5
209.1
130.1
259.2
70.2

142.7
212.0
131.2
259.6
71.2

144.9
218.8
136.8
259.2
67.8

145.6
219.0
137.4
259.9
67.8

146.2

1 Mining and u tilitie s ......................
2
M ining.........................................
3 U tilitie s .......................................
4
Electric ...................................
5 Manufacturing ..............................
6 Nondurable ...............................
7 D u ra b le .......................................
Mining

8
9
10
11

M e ta l...............................................
C o a l.................................................
Oil and gas extraction ................
Stone and earth m in e ra ls............

12
13
14
15
16

F o o d s...............................................
Tobacco products ........................
Textile mill p ro d u cts ....................
Apparel products .........................
Paper and p ro d u c ts ......................

20
21
22
23
26

8.75
.67
2.68
3.31
3.21

149.3
119.8
136.8
128.6
151.0

149.0
120.0
144.0
133.8
153.6

147.8
121.9
139.9
131.3
148.2

149.5
116.2
137.1
128.6
145.7

149.0
113.9
133.6
127.2
146.2

17
18
19
20
21

Printing and publishing ..............
Chemicals and p ro d u c ts ..............
Petroleum p ro d u cts ......................
Rubber and plastic p ro d u c ts ----Leather and products ..................

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

139.6
206.7
134.9
255.8
70.1

139.9
217.4
144.6
266.8
73.3

136.5
209.1
137.4
261.8
69.9

135.5
199.2
133.0
248.1
70.1

135.4
191.1
131.3
242.9
68.5

138.6
190.3
130.5
242.5
67.8

140.3
197.8
126.7
245.9
67.7

22 Ordnance, private and
government ..........................
23 Lumber and p ro d u c ts ..................
24 Furniture ana fixtures ................
25 Clay, glass, stone products ........

19.91
24
25
32

3.64
1.64
1.37
2.74

77.9
119.3
150.0
146.5

77.2
130.2
159.2
162.4

77.5
105.2
157.1
148.8

77.9
104.5
149.5
140.8

77.5
109.7
143.1
134.5

77.1
112.8
138.6
134.2

77.2
121.7
141.1
135.7

77.1
122.6
144.8
141.4

79.1
122.2
147.2
145.2

79.6
124.9
147.2
147.8

79.5
122.0
149.0
151.5

69.6
122.3
148.5
154.0

79.8

26
27
28
29
30

Primary m e ta ls ...............................
Iron and s te e l.............................
Fabricated metal p ro d u c ts ..........
Nonelectrical macninery ............
Electrical m ach in ery ....................

33
331.2
34
35
36

6.57
4.21
5.93
9.15
8.05

101.6
91.7
135.0
162.7
172.7

111.9
103.4
145.7
167.0
179.2

106.4
97.4
141.4
163.2
177.0

96.1
84.4
133.2
162.1
171.4

90.4
75.4
126.1
158.3
166.6

81.7
68.1
123.8
158.5
165.0

86.0
75.3
125.8
158.8
166.7

90.1
79.8
129.0
159.1
167.5

100.6
93.3
132.8
161.1
170.0

113.4
107.4
134.1
163.4
173.0

112.1
103.6
137.4
167.1
174.9

112.9
106.4
138.2
168.8
177.7

111.7
137.9
168.1
175.4

31 Transportation e q u ip m e n t..........
32 Motor vehicles and parts ........
33
Aerospace and miscellaneous
transportation equipment
34 Instruments ...................................
35 Miscellaneous manufactures ___

37
371

9.27
4.50

116.8
118.8

125.7
133.9

115.1
114.7

109.8
105.9

110.0
106.7

110.7
107.9

108.3
104.4

112.9
113.4

118.8
124.2

121.7
129.0

120.6
126.3

117.4
119.0

116.4
117.9

372-9
38
39

4.77
2.11
1.51

114.9
171.0
147.8

118.1
174.8
151.6

115.5
173.8
151.2

113.5
171.0
147.3

113.1
169.2
43.7

113.4
167.5
144.7

111.9
167.6
144.2

112.3
167.4
142.8

113.6
169.6
145.0

114.8
169.9
147.5

115.2
172.1
149.5

116.0
173.6
151.6

114.9
171.6
150.7

Nondurable manufactures

133.8

136.5

Durable manufactures

Gross value (billions of 1972 dollars, annual rates)
M ajor M arket
36 Products, total ..............................

507.4

602.0

619.8

599.5

588.6

585.0

586.7

585.9

593.3

604.7

610.9

615.1

614.4

609.6

37 Final ...............................................
38 Consumer goods ......................
39 Equipment .................................
40 In term ediate...................................

390.92
277.52
113.42
116.62

465.4
313.5
151.9
136.7

476.4
320.0
156.3
143.4

464.5
312.5
152.0
135.0

457.3
306.3
151.0
131.3

455.6
305.8
.149.8
129.4

456.9
307.7
149.2
129.9

453.0
305.1
147.9
132.9

58.0
309.0
149.0
135.3

467.7
316.6
151.1
137.1

473.0
320.0
153.0
137.9

475.0
319.9
155.1
140.1

472.7
317.7
155.0
141.7

470.4
315.8
154.6
139.2

1. The industrial production series has been revised back to January 1979.
2. 1972 dollars.




N o t e . Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D .C .), Decem­
ber 1977.

A48
2.14

Domestic Nonfinancial Statistics □ March 1981
HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1980
Item

1978

1979

1981

1980'
June

July

Aug.

Sept.

Oct.

Nov.'

D ec.'

Jan.

Private residential real estate activity (thousands of units)
N ew U nits

1 Permits authorized ..................................
2
1-fam ily...................................................
3 2-or-more-family ..................................

1,801
1,183
618

1,552
981
570

1,171
704
467

1,078
628
450

1,236'
781
455

1,361
857
504

1,564
914
650

1,333
819
514

1,355
812
543

1,235
743
492

1,213
703
510

4 S tarted .........................................................
5
1-fam ily...................................................
6 2-or-more-family ...................................

2,020
1,433
587

1,745
1,194
551

1,292
852
440

1,184'
760'
424'

1,277'
867'
410'

1,411'
971'
440'

1,482'
1,032'
450'

1,519'
1,009'
510'

1,550
1,019
531

1,532
971
561

1,585
941
644

7 Under construction, end of period1 . . . .
8
1-fam ily...................................................
9
2-or-more-family ..................................

1,310
765
546

1,140
639
501

903
519
385

871
474
397

851
473
378

843
474
369

868
500
368

886'
515'
371'

907
531
376

918
537
381

n.a.
n.a.
n.a.

10 Completed .................................................
11
1-fam ily...................................................
12 2-or-more-farnily ..................................

1,868
1,369
499

1,855
1,286
570

1,498
954
544

1,469
886
583

1,502
876
626

1,405
917
488

1,256
753
503

1,285
819'
466'

1,269
824
445

1,380
897
483

n.a.
n.a.
n.a.

13 Mobile homes shipped ............................

276

277

222

166'

207'

208'

239'

236'

239

261

n.a.

818
419

709
402

531
342

532'
341'

625'
335'

616'
331'

563'
335

549'
334

559
338

527
337

493
336

55.8

62.7

64.9

65.4

64.4

63.2

68.5

66.1'

67.2

67.8

67.2

62.7

71.9

76.6

76.3

76.8

76.5

80.3

77.7'

82.1

81.9

79.6

3,905

3,742

2,881

2,570'

2,920

2,970'

3,280'

3,120'

2,960

2,910

2,580

48.7
55.1

55.5
64.0

62.1
72.7

63.4
74.1'

64.1
75.7

64.9
76.2

64.2
75.5

62.7
73.4

64.3
74.9

63.0
74.0

64.5
76.1

Merchant builder activity in 1-family
units

14 Number sold ............................................
15 Number for sale, end of period1 ..........
Price (thousands o f dollars)2

Median
Units s o l d ..............................................
Average
17 Units sold ..............................................

16

E xisting U nits (1-family)
18 Number sold .............................................
Price o f units sold (thous. o f dollars)2

19 Median .......................................................
20 Average .....................................................

Value of new construction3 (millions of dollars)
C onstruction
21 Total put in place ....................................

205,457

228,948

227,775

215,021

214,315

215,149

223,660

226,132

231,564

242,376

255,638

22 P riv ate.........................................................
23
Residential .............................................
24 Nonresidential, t o t a l ............................
Buildings
25
Industrial ......................................
26
Commercial ..................................
27
O th e r ..............................................
28
Public utilities and other ................

159,555
93,423
66,132

179,948

172,622

161,349

158,593

162,057

167,882

171,053

86,210
86,412

73,360
87,989

74,277
84,316

78,632
83,425

84,378
83,504

87,375
83,678

183,990
95,978
88,012

191,954

99,029
80,919

177,861
93,692
84,169

10,993
18,568
6,739
29,832

14,953
24,924
7,427
33,615

14,021
29,344
8,533
34,514

15,022
29.609
8.256
35,102

13,267
28,063
8,115
34,871

13,046
27,993
8,095
34,291

13,102
27,425
8,447
34,530

12,996
28,417
8,760
33,505

13,392
28,888
8,799
33,090

15,079
30,392
9,086
33,455

14,393
33,574
9,864
33,441

29 Public .........................................................
30 M ilitary ...................................................
31
Highway .................................................
32
Conservation and development ........
33
O th e r.......................................................

45,901
1,501
10,713
4,457
29,230

49,001
1,641
11,915
4,586
30,859

55,154
1,876
13,450
5,081
34,747

53,672
1,748
14,012
4,241
33,671

55,721
2,041
13,758
5,896
34.026

53.092
2.315
11,334
4,353
35,090

55.778
1.717
13.804
5.091
35,166

55,078
2,144
13,550
4,763
34,621

53,703
1,866
12,427
5,109
34,301

58,386
1,818
13,347
5,607
37,614

63,684
2,127
n.a.
n.a.
n.a.

1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods due to changes by the Bureau of the Census in its
estimating techniques. For a description of these changes see Construction Reports
(C-30-76^5), issued by the Bureau in July 1976.




100,682
91,272

N ote . Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back and
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.

Prices
2.15

A49

CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to

3 months (at annual rate) to

Item

1 month to
1980

1980
1980
Jan.

Index
level
Jan.
1981
(1967
= 100)1

1981

1981
Jan.
M a r/

June'

S e p t/

D ec/

S e p t/

O c t/

N ov/

D ec/

Jan

C o n s u m e r P r ic e s 2

1 All items .....................................................

13.9

11.7

17.3

11.4

7.8

13.2

1.0

1.0

1.1

1.0

.7

260.5

2 Commodities .................................................
3 Food ...........................................................
4 Commodities less f o o d ............................
5
D u rab le...................................................
6
Nondurable ...........................................
7 Services...........................................................
8 R e n t.............................................................
9
Services less r e n t ......................................

13.6
8.9
15.7
10.6
22.3
14.5
8.1
15.5

10.3
10.2
10.5
9.8
11.2
13.7
9.1
14.3

15.3
3.3
20.7
8.2
38.1
20.1
8.3
21.7

5.4
5.8
5.2
7.5
3.8
20.5
10.0
22.1

13.2
19.7
10.6
15.2
5.0
.7
8.6
- .3

11.0
13.1
9.9
11.8
6.2
16.8
9.6
17.8

1.3
1.7
1.1
1.5
.4
.7
1.0
.7

.9
.9
.9
1.1
.3
1.2
1.0
1.2

1.0
1.2
.9
1.3
.5
1.3
.6
1.4

.7
1.0
.6
.4
.7
1.4
.7
1.5

.6
- .1
1.0
.3
2.1
.9
.7
.9

245.4
268.6
232.4
221.0
245.3
287.7
200.9
304.2

15.1
12.0
21.1

12.0
11.4
14.8

20.3
14.7
22.6

12.7
14.0
26.4

5.7
5.8
-3 .5

13.2
14.4
23.1

.9
1.0
.7

1.0
1.1
2.0

1.1
1.1
1.7

1.0
1.1
1.5

1.0
.6
.5

257.6
245.7
335.8

13.3
14.4
5.2
19.4
9.6
18.6

10.8
10.9
8.1
12.2
10.8
10.6

17.5
18.8
-.9
29.7
13.6
23.7

8.4
7.6
-1 .4
12.1
10.9
6.2

13.5
14.5
31.0
7.6
9.9
7.8

7.8
6.9
3.6
8.5
11.4
12.6

.3
.3
.5
.2
.1
.5

.9
.8
.7
.8
1.7
.5

.5
.5
.1
.7
.1
.8

.5
.4
.1
.5
.9
1.7

.9
.8
0.0
1.2
1.0
1.3

259.8
261.4
250.6
260.9
253.9
296.6

29.1
3.9

12.3
11.1

18.9
-1 6 .6

.2
- .3

32.3
73.9

17.6
-4 .1

2.3
.7

1.9
1.5

1.3
.2

.8
- 2 .6

- .8
-1 .1

428.7
270.6

Other groupings

10 All items less food ......................................
11 All items less food and energy ..................
12 Homeownership ...........................................
P r o d u c e r P r ic e s

13 Finished g o o d s ...............................................
14 C onsum er...................................................
15
Foods .......................................................
16
Excluding fo o d s ....................................
17 Capital eq u ip m en t....................................
18 Intermediate materials3 ..............................
Crude materials
19 Nonfood .....................................................
20 Food ...........................................................

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.




3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
S o u r c e . B ureau o f L abor Statistics.

A50
2.16

Domestic Nonfinancial Statistics □ March 1981
GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1979
Account

1978

1980

1980r

1979

Q4

Q1

Q2

03

Q4r

G ross N ational P roduct
1 Total .........................................................................................................

2,156.1

2,413.9

2,626.5

2.727.5

2,571.7

2,564.8

2,637.3

2,732.3

2 Personal consumption expenditures....................................................
3 Durable g o o d s .....................................................................................
4
Nondurable g o o d s...............................................................................
5
Services.................................................................................................

1,348.7
199.3
529.8
619.6

1,510.9
212.3
602.2
696.3

1,672.3
211.9
675.4
785.1

1,582.3
675.4
785.1
727.0

1,631.0
220.9
661.1
749.0

1,626.8
194.4
664.0
768.4

1,682.2
208.8
674.2
799.2

1,749.2
223.4
702.2
823.7

6 Gross private domestic investment .....................................................
7
Fixed investm ent.................................................................................
8
N onresidential.................................................................................
9
S tructures.....................................................................................
10
Producers’ durable equipment ................................................
11
Residential stru ctu res.....................................................................
12
N o n farm .......................................................................................

375.3
353.2
242.0
78.7
163.3
111.2
106.9

415.8
398.3
279.7
96.3
183.4
118.6
113.9

395.4
400.8
295.4
108.6
186.8
105.3
100.3

410.0
108.6
290.2
105.1
185.1
120.6
115.4

415.6
413.1
297.8
108.2
189.7
115.2
110.1

390.9
383.5
289.8
108.4
181.4
93.6
88.9

377.1
393.2
294.0
107.3
186.8
99.2
94.5

398.1
413.3
300.0
110.5
189.5
113.3
107.9

Change in business inventories.........................................................
N o n farm ...........................................................................................

22.2
21.8

17.5
13.4

- 5 .3
-4 .1

- 0 .8
- 4 .4

2.5
1.5

7.4
6.1

-1 6 .4
-1 2 .3

- 1 5 .2
-1 1 .7

15 Net exports of goods and services .......................................................
16 E x p o rts .................................................................................................
17 Im p o rts .................................................................................................

-0 .6
219.8
220.4

13.4
281.3
267.9

24.2
340.1
315.9

7.6
306.3
298.7

8.2
337.3
329.1

17.1
333.3
316.2

44.5
342.4
297.9

26.9
347.5
220.5

18 Government purchases of goods and services ..................................
19 Federal .................................................................................................
20
State and lo c a l.....................................................................................

432.6
153.4
279.2

473.8
167.9
305.9

534.6
198.9
335.7

496.4
178.1
318.3

516.8
190.0
326.8

530.0
198.7
331.3

533.5
194.9
338.6

558.0
212.1
346.0

21 Final sales, total .....................................................................................
22
G o o d s ...................................................................................................
23
D u rab le.............................................................................................
24
Nondurable .....................................................................................
25
Services.................................................................................................
26 Structures .............................................................................................

2,133.9
946.6
409.8
536.8
976.3
233.2

2,396.4
1,055.9
451.2
604.7
1,097.2
260.8

2,631.8
1,131.2
458.8
672.3
1,229.5
265.8

2,497.1
1,078.4
448.1
630.3
1,142.8
275.1

2,569.1
1,116.9
456.4
660.5
1,178.6
276.2

2,557.4
1,106.4
444.6
661.8
1,205.6
252.8

2,653.4
1,129.4
456.5
672.9
1,249.0
258.9

2,747.5
1,171.9
477.8
694.1
1,284.8
275.5

27 Change in business inventories.............................................................
28 Durable g o o d s .....................................................................................
29 Nondurable g o o d s...............................................................................

22.2
17.8
4.4

17.5
11.5
6.0

- 5 .3
-4 .1
- 1 .2

- 0 .8
- 0 .4
- 0 .5

2.5
-1 1 .8
14.3

7.4
3.3
4.1

-1 6 .0
-8 .4
- 7 .7

-1 5 .2
.4
-1 5 .6

30 M emo : Total GNP in 1972 dollars ......................................................

1,436.9

1,483.0

1,480.7

1,490.6

1,501.9

1,463.3

1,471.9

1,486.5

31 Total .........................................................................................................

1,745.4

1,963.3

2,119.5

2,031.3

2,088.5

2,070.0

2,122.4

n.a.

32 Compensation of e m p lo y ees.................................................................
33
Wages and salaries .............................................................................
34
Government and government en terp rises..................................
35
O th e r.................................................................................................
36 Supplement to wages and salaries ..................................................
37
Employer contributions for social insurance ............................
38
Other labor income .......................................................................

1,299.7
1,105.4
219.6
885.7
194.3
92.1
102.2

1,460.9
1,235.9
235.9
1,000.0
225.0
106.4
118.6

1,596.5
1,343.6
253.6
1,090.0
252.9
115.8
137.1

1,518.1
1,282.4
243.3
1,039.1
235.7
109.8
126.0

1,558.0
1,314.5
246.7
1,067.9
243.5
112.6
130.9

1,569.0
1,320.4
250.5
1,069.9
248.6
113.6
135.1

1,597.4
1,342.3
253.9
1,088.4
255.0
116.0
139.1

1,661.6
1,397.2
263.3
1,133.9
264.5
121.0
143.5

39 Proprietors’ income1 ...............................................................................
40
Business and professional1 ...............................................................
41
Farm1 ...................................................................................................

117.1
91.0
26.1

131.6
100.7
30.8

130.7
107.2
23.4

136.3
106.8
29.5

133.7
107.9
25.7

124.9
101.6
23.3

129.7
107.6
22.1

134.3
111.8
22.6

By source

13
14

By m ajor type o f product

N ational Income

42 Rental income of persons2 ...................................................................

27.4

30.5

31.8

31.0

31.2

31.5

32.0

32.4

43 Corporate profits1 ...................................................................................
44
Profits before tax3 ...............................................................................
45
Inventory valuation adjustment .......................................................
46
Capital consumption adjustment .....................................................

199.0
223.3
-2 4 .3
-1 3.5

196.8
255.4
-4 2 .6
-1 5 .9

180.7
241.8
-4 3 .9
-1 7 .2

189.4
255.4
-5 0 .8
-1 5 .1

200.2
277.1
-6 1 .4
-1 5 .4

169.3
217.9
-3 1 .1
-1 7 .6

177.9
237.6
-4 1 .7
-1 7 .9

n.a.
n.a.
-4 1 .4
-1 7 .8

47 Net interest .............................................................................................

115.8

143.4

179.9

156.5

165.4

175.3

185.3

193.6

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.




3. For after-tax profits, dividends, and the like, see table 1.49.
So urce.

Survey o f Current Business (Department of Commerce).

National Income Accounts
2.17

A51

PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1979
1978

A c co u n t

P e r s o n a l In c o m e

and

1979

1980

1980'
Q4

Q1

02

03

04'

S a v in g

1 Total personal incom e.............................................................................

1,721.8

1,943.8

2,160.2

2,032.0

2,088.2

2,114.5

2,182.1

2,256.0

2 W age and salary d isb u rsem en ts ......................................................................
3 C om m odity-produ cin g ind u stries ...............................................................
4
M a n u fa c tu r in g .................................................................................................
5 D istrib u tive industries .....................................................................................
6 S ervice industries ...............................................................................................
7 G o v er n m e n t and g o v er n m en t e n t e r p r is e s ..............................................

1,105.2
389.1
299.2
270.5
226.1
219.4

1,236.1
437.9
333.4
303.0
259.2
236.1

1,343.6
465.4
350.7
328.9
295.7
253.6

1,282.2
450.4
340.4
315.0
273.7
243.1

1,314.7
461.7
347.9
322.6
283.6
246.8

1,320.4
456.0
343.2
323.2
290.8
250.5

1,341.8
460.1
346.7
329.2
298.7
253.9

1,397.7
484.1
365.0
340.6
309.7
263.3

102.2
117.2
91.0
26.1
27.4
43.1
173.2
223.3
116.2

118.6
131.6
100.8
30.8
30.5
48.6
209.6
249.4
131.8

137.1
130.7
107.2
23.4
31.8
54.4
256.2
294.2
153.8

126.0
136.3
106.8
29.5
31.0
50.1
225.7
263.1
139.3

130.9
133.7
107.9
25.7
31.2
52.4
239.9
271.7
142.0

135.1
124.9
101.6
23.3
31.5
54.2
253.6
280.7
144.7

139.1
129.7
107.6
22.1
32.0
55.1
261.8
310.7
163.2

143.5
134.3
111.8
22.6
32.4
56.1
269.4
313.9
165.3

8
9
10
11
12
13
14
15
16

O th er labor in c o m e ...............................................................................................
P rop rietors’ in c o m e 1 ...............................................................................................
B usin ess and p r o fe ssio n a l1 ...............................................................
F arm 1 .......................................................................................................................
R ental in c o m e o f p erso n s2 ...................................................................
D i v i d e n d s .................................................................................................
Personal interest in c o m e .......................................................................
T ransfer p aym en ts .................................................................................................
O ld-age su rvivors, d isab ility, and h ealth insurance b en efits . . . .

17

L e s s : P ersonal con trib u tions for social insurance .............................

69.6

80.6

87.9

82.4

86.2

85.9

88.1

91.2

18 E q u a l s : P ersonal in c o m e ...................................................................................

1,721.8

1,943.8

2,160.2

2,032.0

2,088.2

2,114.5

2,182.1

2,256.0

L e s s : P ersonal tax and n ontax p aym en ts ..............................................

258.8

302.0

338.6

321.8

323.1

330.3

341.5

359.3

20 E q u a l s : D isp o sa b le p erson al in com e ..........................................................

1,462.9

1,641.7

1,821.6

1,710.1

1,765.1

1,784.1

1,840.6

1,896.7

21

19

L e s s : P ersonal ou tlays .....................................................................................

1,386.6

1,555.5

1,719.8

1,629.4

1,678.7

1,674.1

1,729.2

1,797.2

22 E q u a l s : P ersonal s a v i n g .....................................................................................

76.3

86.2

101.8

80.7

86.4

110.0

111.4

99.5

M em o:
Per capita (1972 d ollars)
G ross n ational p r o d u c t .....................................................................................
P ersonal co n su m ption e x p e n d it u r e s ..........................................................
D isp o sa b le person al in c o m e .........................................................................
Saving rate (p er cen t) ............................................................................................

6,568
4,136
4,487
5.2

6,721
4,219
4,584
5.2

6,646
4,196
4,571
5.6

6,730
4,251
4,596
4.7

6,768
4,251
4,600
4.9

6,580
4,134
4,532
6.2

6,597
4,172
4,565
6.1

6,645
4,229
4,585
5.2

355.2

412.0

400.7

402.0

404.5

394.5

402.0

n.a.

355.4
76.3
57.9
-2 4 .3

398.9
86.2
59.1
-4 2 .6

433.1
101.8
44.0
-4 3 .9

396.4
80.7
50.6
-5 0 .8

413.0
86.4
52.1
-6 1 .4

435.9
110.0
42.1
-3 1 .1

446.5
111.4
42.8
-4 1 .7

n .a.

-4 1 .4

136.4
84.8
.0

155.4
98.2
.0

175.4
111.8
.0

161.5
103.6
.0

167.1
107.4
.0

173.0
110.7
.0

178.4
113.4
.5

183.2
115.8
-.5

- 0 .2
-2 9 .2
29.0

11.9
-1 4 .8
26.7

-3 3 .4
-6 2 .3
28.8

4.4
-2 4 .5
28.9

1.7
-3 6 .3
26.6

-2 9 .6
-6 6 .5
23.9

-4 5 .6
-7 4 .2
28.6

n .a.
n .a.
n .a.

23
24
25
26

G r o ss S a v in g

27 Gross sav in g .............................................................................................
28
29
30
31

G ross private s a v i n g ...............................................................................................
P ersonal saving .........................................................................................................
U n distribu ted corporate p ro fits1 ....................................................................
C orporate inventory v aluation a d j u s t m e n t ................................................

99.5
n .a .

Capital consumption allowances

32 C o r p o r a t e .....................................................................................................................
33 N o n c o r p o r a te .............................................................................................................
34 W age accruals less d isb u rsem en ts .......................................................
35 G o v er n m e n t surplus, or d eficit ( - ) , national in c o m e and product
36
37

accoun ts .............................................................................................................
F ederal .....................................................................................................................
State and l o c a l ......................................................................................................

38 C apital grants re ce iv e d by th e U n ite d S ta te s, n e t ..................................

.0

1.1

1.1

1.1

1.1

1.1

1.1

1.1

39 Gross investm ent.....................................................................................

361.6

414.1

402.5

401.3

407.3

392.5

405.0

405.0

40 G ross private d o m e s t ic ..........................................................................................
41 N e t f o r e i g n ...............................................................................................

375.3
-1 3 .8

415.8
-1 .7

395.4
7.0

410.0
-8 .7

415.6
-8 .3

390.9
1.7

377.1
27.8

398.1
6.9

42 Statistical discrepancy.............................................................................

6.4

2.2

1.7

-0 .7

2.8

- 1 .9

3.0

n.a.

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




S o u r c e . Survey o f Current Business

(Department of Commerce).

A52
3.10

International Statistics □ March 1981
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1980

1979
Item credits or debits

1 Balance on current account .......................................................
2 Not seasonally adjusted .........................................................

1977

1979

1978

03

Q4

Ql

Q3 p

Q2

-14,068

-14,259

-7 8 8

1,099
-2,909

-1,8 0 2
486

-2,6 1 0
-2,426

-2,431
-6 8 0

4,900
480

3
4
5
6
7
8
9

Merchandise trade balance2 ...................................................
Merchandise e x p o rts ...........................................................
Merchandise im p o rts...........................................................
Military transactions, net .......................................................
Investment income, net3 .........................................................
Other service transactions, net .............................................
M e m o : Balance on goods and services3 4 ..........................

-30,873
120,816
-151,689
1,628
17,988
1,794
-9,464

-33,759
142,054
-175,813
886
20,899
2,769
-9,204

-29,469
182,055
-211,524
-1,2 7 4
32,509
3,112
4,878

-7 ,0 6 0
47,198
-54,258
-4 4 3
9,319
690
2,506

-9,225
50,237
-59,462
-7 0 0
8,883
792
-2 5 0

-10,850
54,708
-65,558
-9 2 2
10,094
880
-7 9 8

-7,505
54,710
-62,215
-9 9 4
6,133
1,261
-1,105

-2 ,8 2 8
56,288
-59,116
-6 3 2
8,467
1,370
6,377

10
11

Remittances, pensions, and other transfers ......................
U.S. government grants (excluding military) ....................

-1,830
-2,775

-1,884
-3,171

-2,142
-3,5 2 4

-5 2 9
-8 7 8

-6 6 5
-8 8 7

-5 6 5
-1,247

-5 6 4
-7 6 2

-5 7 4
-9 0 3

12 Change in U.S. government assets, other than official re­
serve assets, net (increase, - ) ............ ............................

-3,693

-4,644

-3,783

-7 6 6

-9 2 5

-1,467

-1,191

-1 ,320

13 Change in U.S. official reserve assets (increase, - ) ..........
14 G o ld ...........................................................................................
15 Special drawing rights (SDRs) .............................................
16 Reserve position in International Monetary F u n d ............
17 Foreign cu rren cies...................................................................

-3 7 5
-1 1 8
-121
-2 9 4
158

732
-6 5
1,249
4,231
-4,683

-1,132
-6 5
-1,1 3 6
-1 8 9
257

2,779
0
0
-5 2
2,831

-6 4 9
-6 5
0
27
-6 1 1

-3,268
0
1,152
-3 4
-2,082

502
0
112
-9 9
489

-1 ,1 0 9
0
261
-2 9 4
-5 5 4

18 Change in U.S. private assets abroad (increase, - ) 3 ..........
19 Bank-reported claims .............................................................
20 Nonbank-reported c la im s .......................................................
21
U.S. purchase of foreign securities, net ............................
22
U.S. direct investments abroad, net3 ..................................

-31,725
-11,427
-1,940
-5 ,460
-12,898

-57,279
-33,631
-3,853
-3,450
-16,345

-56,858
-25,868
-2,029
-4,643
-24,318

-27,228
-16,997
-9 3 2
-2,143
-7,156

-11,918
-7,213
410
-9 8 6
-4,129

-7,976
-2 7 4
-1,474
-7 6 5
-5,463

-25,023
-21,051
147
-1 ,2 4 6
-2,8 7 3

-17,767
-12,477
n.a.
-8 0 5
-4,485

23 Change in foreign official assets in the United States
(increase, + ) .......................................................................
24
U.S. Treasury secu rities.........................................................
25
Other U.S. government obligations ....................................
26
Other U.S. government liabilities5 ......................................
27 Other U.S. liabilities reported by U.S. banks ..................
28
Other foreign official assets6 .................................................

36,574
30,230
2,308
1,159
773
2,105

33,292
23,523
666
2,220
5,488
1,395

-14,270
-22,356
465
-7 1 4
7,219
1,116

5,789
5,024
335
216
56
158

-1,221
-5,769
41
-9 2 4
4,881
550

-7,215
-5,3 5 7
801
181
-3,185
345

7,775
4,314
250
737
1,652
822

8,025
3,769
549
305
1,989
1,413

14,167
6,719
473

30,804
16,259
1,640

51,845
32,668
1,692

19,152
13,185
606

5,246
400
1,050

14,409
6,355
683

174
-4 ,2 0 8
1,331

2,978
36
n.a.

534
2,713
3,728

2,197
2,811
7,896

4,830
2,942
9,713

1,466
677
3,218

920
313
2,563

3,278
2,427
1,666

-1,225
1,194
3,082

-2 5 4
990
2,206

0
-8 8 0

0
11,354

1,139
22,848

0
-8 2 5
-3,641

0
11,269
2,400

1,152
6,975
-9 9

0
20,194
1,460

0
4,293
-4 ,0 2 2

-8 8 0

11,354

23,848

2,816

8 869

7,074

18,734

8,315

29 Change in foreign private assets in the United States
(increase, + ) 3 .....................................................................
30 U.S. bank-reported liabilities ...............................................
31
U.S. nonbanK-reported liabilities .........................................
32
Foreign private purchases of U.S. Treasury securities,
net .....................................................................................
33
Foreign purchases of other U.S. securities, n e t ................
34 Foreign direct investments in the United States, net3 . . .
35 Allocation of S D R s .....................................................................
36 Discrepancy .................................................................................
37 Owing to seasonal ad ju stm en ts.............................................
38
Statistical discrepancy in recorded data before seasonal
adjustment .......................................................................
M em o:

Changes in official assets
U.S. official reserve assets (increase, - ) ..........................
Foreign official assets in the United States
(increase, + ) ...................................................................
41 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 23
above) ...................................................................................
42 Transfers under military grant programs (excluded from
lines 4, 6, and 11 above) ...................................................
39
40

-3 7 5

732

-1,132

2,779

-6 4 9

-3,268

502

-1 ,1 0 9

35,416

31,072

-13,556

5,573

-2 9 7

-7,396

7,038

7,720

6,351

-1,137

5,508

1,676

4,955

2,930

4,749

4,380

204

236

305

88

139

144

155

110

1. Seasonal factors are no longer calculated for lines 13 through 42.
2. Data are on an international accounts (IA) basis. Differs from the census basis
primarily because the IA basis includes imports into the U.S. Virgin Islands, and
it excludes military exports, which are part of line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Differs from the definition of “ net exports of goods and services” in the
national income and product (GNP) account. The GNP definition makes various
adjustments to merchandise trade and service transactions.




5. Primarily associated with military sales contracts and other transactions ar­
ranged with or through foreign official agencies.
6. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
N o te . Data are from Bureau o f Economic Analysis, Survey o f Current Business
(U .S. Department of Commerce).

Trade and Reserve Assets
3.11

A53

U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1980'
Item

1978'

1979'

July
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments ..........................................

143,682

2 GENERAL IMPORTS including merchandis for immediate consump­
tion plus entries into bonded
w arehouses........................................

174,759

3 Trade balance ..........................................

-31,075

181,860

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

220,684

18,267

19,086

209,458

245,010

19,139

19,713

19,940

20,347

19,860

21,436

23,194

-27,598

-24,326

-8 7 2

-6 2 6

-1,112

-1 ,1 3 4

-1 ,1 4 5

-2 ,1 8 5

-4 ,3 6 9

N o t e . The data in this table are reported by the Bureau of Census data on a
free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. Begin­
ning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census
basis trade data; this adjustment has been made for all data shown in the table.
The Census basis data differ from merchandise trade data shown in table 3.10.
U.S. International Transactions Summary, for,reasons of coverage and timing. On
the export side, the largest adjustments are: (a) the addition of exports to Canada
not covered in Census statistics, and (b) the exclusion of military sales (which are
combined with other military transactions and reported separately in the “service

3.12

1981

1980'

18,828

19,214

18,715

19,251

18,825

account” in table 3.10, line 6. On the im port side, additions are made for gold,
ship purchases, imports of electricity from Canada and other transactions; military
payments are excluded and shown separately as indicated above.
S o u r c e . FT900 “Summary of U.S. Export and Import Merchandise Trade”
(U.S. Department of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1980
Type

1978

1979

1981

1980
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.P

1 Total1 ........................................................

18,650

18,956

26,756

22,691

22,994

23,967

25,673

26,756

28,316

29,682

2 Gold stock, including Exchange Stabili­
zation Fund1 ....................................

11,671

11,172

11,160

11,172

11,168

11,163

11,162

11,160

11,159

11,156

3 Special drawing rights2-3 ........................

1,558

2,724

2,610

4,009

4,007

3,939

3,954

2,610

3,628

3,633

4 Reserve position in International Mone­
tary Fund2 ........................................

1,047

1,253

2,852

1,564

1,665

1,671

1,822

2,852

2,867

3,110

5 Foreign currencies4-5 ..............................

4,374

3,807

10,134

5,946

6,154

7,194

8,735

10,134

10,662

11,783

1. Gold held under earmark at Federal Reserve Banks for foreign and inter­
national accounts is not included in the gold stock of the United States; see table
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.




3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan.
1, 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.

A54
3.13

International Statistics □ March 1981
FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data

Millions of dollars, end of period
1980
Asset account

1977

19781

1979
June

July'

A ug/

Sept.'

O ct.r

Nov.

Dec.P

All foreign countries
1 Total, all currencies ...............................

258,897

306,795

364,233

376,722

377,877

386,467

385,884

383,178

389,011

398,207

2 Claims on United States ........................
3 Parent bank ..........................................
4
O th e r.......................................................

11,623
7,806
3,817

17,340
12,811
4,529

32,302
25,929
6,373

29,069
18,565
10,504

29,085
17,552
11,533

36,864
26,711
10,153

29,341
19,685
9,656

30,476
21,440
9,036

30,617
22,254
8,363

28,480
20,661
7,819

5 Claims on foreigners................................
6 Other branches of parent bank ........
7 Banks ....................................................
8 Public borrowers2 ................................
9 Nonbank foreigners ............................

238,848
55,772
91,883
14,634
76,560

278,135
70,338
103,111
23,737
80,949

317,175
79,661
123,413r
26,072
88,029''

330,171
76,061
132,667'25,632
95,811'-

331,320
75,196
134,710
25,474
95,940

332,522
72,558
136,617
26,113
97,234

339,188
73,856
139,924
26,740
98,668

335,418
72,458
138,246
26,548
98,166

340,647
74,043
139,929
26,935
99,740

350,795
76,556
144,443
27,690
102,106

10 Other assets ..............................................

8,425

11,320

14,756

17,482

17,472

17,081

17,355

17,284

17,747

18,932

11 Total payable in U.S. dollars.................

193,764

224,940

267,711

275,232

275,783

283,974

282,171

279,689

284,281

290,818

12 Claims on United States ........................
13 Parent bank ..........................................
14 O th e r .......................................................

11,049
7,692
3,357

16,382
12,625
3,757

31,171
25,632
5,539

27,867
18,254
9,613

27,720
17,236
10,484

35,551
26,390
9,161

28,138
19,414
8,724

29,059
21,043
8,016

29,173
21,853
7,320

27,225
20,310
6,915

15 Claims on foreigners................................
16 Other branches of parent bank ,
17 Banks ....................................................
18 Public borrowers2 ................................
19 Nonbank foreigners ............................

178,896
44,256
70,786
12,632
51,222

203,498
55,408
78,686
19,567
49,837

229,118
61,525
96,261r
21,629
49,703r

238,213
58,456
104,982r
21,382
53,393'-

239,290
57,813
106,399
21,233
53,845

239,561
55,106
108,109
21,786
54,560

245,588
56,603
111,916
22,305
54,764

242,018
55,230
109,443
22,578
54,767

246,238
57,219
110,799
22,846
55,374

253,330
58,259
115,863
23,391
55,817

3,820

5,060

7,422

9,152

8,773

8,862

8,445

8,612

8,870

10,263

United Kingdom
21 Total, all currencies ..............................

90,933

106,593

130,873

139,066

135,669

136,467

137,447

138,158

140,715

142,781

22 Claims on United States ........................
23 Parent bank ..........................................
24 O th e r ......................................................

4,341
3,518
823

5,370
4,448
922

11,117
9,338
1,779

9,157
6,870
2,287

8,366
5,705
2,661

8,465
6,023
2,442

8,022
5,788
2,234

8,216
5,969
2,247

8,771
6,552
2,219

7,477
5,792
1,685

25 Claims on foreigners................................
26 Other branches of parent bank ........
27 Banks ....................................................
28 Public borrowers2 ................................
29 Nonbank foreigners ............................

84.016
22.017
39,899
2,206
19,895

98,137
27,830
45,013
4,522
20,772

115,123
34,291
51,343
4,919
24,570

124,059
34,824
54,855
5,897
28,483

120,914
32,231
54,824
5,710
28,149

121,805
31,607
55,530
5,865
28,803

123,369
30,858
57,066
6,251
29,194

123,854
31,431
56,723
6,113
29,587

125,859
32,267
57,423
6,405
29,764

129,263
34,538
57,658
6,780
30,287

30 Other assets ..............................................

2,576

3,086

4,633

5,850

6,389

6,197

6,056

6,088

6,085

6,041

31 Total payable in U.S. dollars.................

66,635

75,860

94,287

98,013

93,158

93,720

94,784

95,287

97,246

98,913

32 Claims on United States ........................
33 Parent bank ..........................................
34 O th e r ......................................................

4,100
3,431
669

5,113
4,386
727

10,746
9,297
1,449

8,790
6,810
1,980

7,831
5,629
2,202

7,954
5,960
1,994

7,656
5,744
1,912

7,647
5,817
1,830

8,233
6,410
1,823

7,098
5,701
1,397

35 Claims on foreigners................................
36
Other branches of parent bank ........
37
Banks ....................................................
38 Public borrowers2 ................................
39
Nonbank foreigners ............................

61,408
18,947
28,530
1,669
12,263

69,416
22,838
31,482
3,317
11,779

81,294
28,928
36,760
3,319
12,287

86,404
28,692
39,050
4,396
14,266

82,434
26,083
38,471
4,280
13,600

82,705
25,565
39,070
4,327
13,743

84,355
24,913
40,917
4.663
13,862

84,849
25,593
40,312
4,551
14,393

86,246
26,710
40,542
4,706
14,288

88,967
28,231
41,373
4,909
14,454

40 O ther assets ..............................................

1,126

1,331

2,247

2,819

2,893

3,061

2.773

2,791

2,767

2,848

Bahamas and Caymans
41 Total, all currencies ..............................

79,052

91,735

108,977

115,276

120,307

128,515

123,179

119,524

119,367

124,969

42 Claims on United States ........................
43 Parent bank ..........................................
44 O th e r......................................................

5,782
3,051
2,731

9,635
6,429
3,206

19,124
15,196
3,928

17,682
10,660
7,022

18,272
10,524
7,748

25,882
19,149
6,733

18,305
11,839
6,466

19,656
13,837
5,819

18,325
13,071
5,254

17,813
12,573
5,240

45 Claims on foreigners................................
46
Other branches of parent bank ........
47 Banks ....................................................
48
Public borrowers2 ................................
49 Nonbank foreigners ............................

71,671
11,120
27,939
9,109
23,503

79,774
12,904
33,677
11,514
21,679

86,718
9,689
43,189r
12,905
20,935r

93,432
12,977
48,092r
11,554
20,809r

98,020
14,362
50,866
11,627
21,165

98,496
13,160
51,845
12,055
21,436

100,905
14,724
52,787
12,078
21,316

95,959
13,093
49,915
12,441
20,510

96,800
13,135
50,646
12,213
20,806

101,943
13,336
54,814
12,574
21,219

50 Other assets ..............................................

1,599

2,326

3,135

4,162

4,015

4,137

3,969

3,909

4,242

5,213

51 Total payable in U.S. dollars.................

73,987

85,417

102,368

109,715

114,538

122,667

117,245

113,683

113,572

118,786

For notes see opposite page.




Overseas Branches
3.13

A55

Continued

1980
Liability account

1977

19781

1979
June

July

Aug.

Sept.'

O ct.'

Nov.

Dec.P

All foreign countries
52 Total, all currencies ..............................

258,897

53 To United S ta te s .......................................
54
Parent bank ...........................................
55
Other banks in United States ............
56 N o n b an k s...............................................

44,154
24,542

57 To foreigners .............................................
58
Other branches of parent bank ........
59 Banks .....................................................
60
Official institutions ..............................
61
Nonbank foreigners ............................

206,579
53,244
94,140
28,110
31,085

19,613

62 Other liabilities .........................................

8,163

63 Total payable in U.S. dollars ..................

198,572

64 To United S ta te s ......................................
65
Parent bank ...........................................
66
Other banks in United States ............
67 N o n b an k s...............................................

42,881
24,213

68 To foreigners .............................................
69
Other branches of parent bank ........
70 Banks .....................................................
71
Official institutions ..............................
72 Nonbank foreigners ............................

151,363
43,268
64,872
23,972
19,251

73 Other liabilities .........................................

4,328

18,669

306,795
58,012'
28,654'
12,169'
17,189'
238,912
67,496
97,711
31,936
41,769
9,871'

364,233
66,686'
24,530'
13,968
28,188
283,344
77,601
122,849
35,664
47,230

76,187'
30,985'
12,255
32,947
284,716
72,061
127,813
34,141
50,701

386,467'

385,884

383,178

389,011

398,207

83,244'
35,423'
11,415
36,406'

87,606'
37,466'
14,725
35,415'

84,068
38,490
12,635
32,943

84,152
37,187
12,860
34,105

86,580
36,957
13,410
36,213

91,017
39,298
14,277
37,442

279,604'
72,067
122,727'
33,073
51,737'

284,141'
69,178'
130,360'
33,080
51,523'

287,810
70,689
131,022
33,086
53,013

285,198
69,691
132,142
30,713
52,652

288,225
71,498
132,237
31,073
53,417

291,637
73,864
130,408
32,386
54,979

15,029'

14,720'

14,006

13,828

14,206

15,553

282,578

283,090'

291,873'

289,163

287,177

292,425

301,976

64,530
23,403
13,771
27,356

73,527
29,547
11,985
31,995

80,657'
33,977
11,155
35,525'

84,698'
35,906
14,419
34,373'

81,125
36,825
12,410
31,890

81,255
35,431
12,581
33,243

83,764
35,243
13,114
35,407

88,201
37,666
13,959
36,576

169,927
53,396
63,000
26,404
27,127

201,476
60,513
80,691
29,048
31,224

200,049
56,247
84,467
26,961
32,374

194,359'
56,206
78,930'
26,177
33,046'

198,971'
53,355'
86,420'
26,165
33,031'

200,281
55,146
85,387
25,659
34,089

198,541
53,695
86,961
23,364
34,521

200,814
55,543
86,525
23,798
34,948

204,643
56,852
86,482
24,702
36,607

5,072

7,813

9,002

8,204'

7,757

7,381

7,847

9,132

55,811
27,519
11,915'
16,377'

15,819'

377,877'

273,819

230,810

14,203'

376,722

8,074

United Kingdom
74 Total, all currencies ................................

90,933

75 To United S ta te s .......................................
76
Parent bank ...........................................
77
Other banks in United States ............
78
N o n b an k s...............................................

7,753
1,451

79 To foreigners .............................................
80 O ther branches of parent bank ........
81
Banks .....................................................
82
Official institutions ..............................
83 Nonbank foreigners ............................

80,736
9,376
37,893
18,318
15,149

6,302

106,593
9,730
1,887
4,189'
3,654'
93,202
12,786
39,917
20,963
19,536

130,873

139,066

135,669

136,467

137,447

138,158

140,715

142,781

20,986
3,104
7,693
10,189

20,012
2,410
6,129
11,473

21,404
3,275
5,567
12,562

20,608
2,542
5,910
12,156

19,343
2,951
5,361
11,031

19,157
2,712
5,800
10,645

20,594
3,198
5,732
11,664

21,739
4,176
5,716
11,847

104,032
12,567
47,620
24,202
19,643

112,055
13,767
54,927
22,577
20,784

107,739
12,694
51,203
21,088
22,754

109,604
13,343
51,452
22,600
22,209

112,412
13,706
53,776
22,444
22,486

113,539
13,940
56,772
19,807
23,020

114,813
13,951
58,127
20,437
22,298

115,578
13,933
55,848
21,412
24,385

84 Other liabilities .........................................

2,445

3,661

5,855

6,999

6,526

6,255

5,692

5,462

5,308

5,464

85 Total payable in U.S. dollars ..................

67,573

77,030

95,449

100,117

95,314

96,453

96,832

97,055

99,135

102,300

86 To United S ta te s ......................................
87
Parent bank ...........................................
88 Other banks in United States ............
89 N o n b an k s...............................................

7,480
1,416
6,064

20,552
3,054
7,651
9,847

19,321
2,315
6,056
10,950

20,843
3,238
5,486
12,119

20,007
2,496
5,809
11,702

18,687
2,892
5,259
10,536

18,551
2,634
5,714
10,203

19,978
3,101
5,616
11,261

21,080
4,078
5,626
11,376

90 To foreigners .............................................
91
Other branches of parent bank ........
92 Banks .....................................................
93
Official institutions ..............................
94 Nonbank foreigners ............................

58,977
7,505
25,608
15,482
10,382

66,216
9,635
25,287
17,091
14,203

72,397
8,446
29,424
20,192
14,335

77,322
9,758
35,394
18,300
13,870

71,489
8,672
31,352
16,846
14,619

73,431
9,128
31,726
18,253
14,324

75,422
9,588
32,891
18,046
14,897

76,114
9,891
35,495
15,338
15,390

76,696
9,770
35,998
15,989
14,939

78,512
9,600
35,097
17,024
16,791

95 Other liabilities ........................................

1,116

1,486

2,500

3,474

2,982

3,015

2,723

2,390

2,461

2,708

9,328
1,836
4,101'
3,391'

Bahamas and Caymans
96 Total, all currencies ..............................

79,052

91,735

108,977

115,276

120,307'

128,515'

123,179

119,524

119,367

124,969

97 To United S ta te s .......................................
98 Parent bank ...........................................
99 Other banks in United States ............
100 N o n b an k s...............................................

32,176
20,956
11,220

39,431
20,482
6,073
12,876

37,719
15,267
5,204
17,248

48,431
22,748
5,200
20,483

54,217'
26,589
4,821
22,807'

58,925'
29,189
7,460
22,276'

56,317
29,355
6,075
20,887

56,123
27,678
5,945
22,500

56,860
26,871
6,518
23,471

59,746
28,353
7,135
24,258

101 To foreigners .............................................
102 Other branches of parent bank ........
103 Banks .....................................................
104 Official institutions ..............................
105 Nonbank foreigners ............................

45,292
12,816
24,717
3,000
4,759

50,447
16,094
23,104
4,208
7,041

68,598
20,875
33,631
4,866
9,226

63,935
20,102
28,917
5,096
9,820

63,208'
20,409
27,145'
5,525
10,129'

66,630'
18,081
34,100'
4,119
10,330'

63,966
17,079
32,185
4,250
10,452

60,593
16,720
29,202
4,610
10.061

59,492
15,878
28,933
4,368
10,313

61,305
17,040
29,901
4,361
10,003

106 Other liabilities .........................................
107 Total payable in U.S. dollars ..................

1,584

1,857

2,660

2,910

2,882

74,463

87,014

103,460

11,494

116,246'

1. In May 1978 the exemption level for branches required to report was increased,
which reduced the number of reporting branches.
2. In May 1978 a broader category of claims on foreign public bor-




2,960'

2,896

2,808

3,015

3,918

124,103'

118,576

115,166

115,121

120,789

rowers, including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official institutions.

A56
3.14

International Statistics □ March 1981
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1980
Item

1977

July
1 Total1...............................................................................

1981

1979

1978

Aug.

Sept.

Oct.

Nov.

Dec.P

Jan.P

131,097

162,589

149,481'

153,088

154,674

156,899

157,385

163,196

164,312

162,701

18,003
47,820

23,290
67,671

30,475
47,666

29,211
47,982

29,449
49,811

30,918
49,361

28,815
50,392

29,601
55,104

30,361
56,243

26,926
56,525

32,164
20,443
12,667

35,894
20,970
14,764

37,590
17,387
16,363'

40,546
15,954
19,395

39,801
15,654
19,959

40,799
15,254
20,567

41,463
15,254
21,461

41,764
15,254
21,473

41,431
14,654
21,623

42,318
14,654
22,278

70,748
2,334
4,649
50,693
1,742
931

93,089
2,486
5,046
58,817
2,408
743

85,602
1,898
6,291
52,793'
2,412
485

78,141
1,907
6,308
63,086
2,930
716

78,424
2,156
6,050
64,287
3,281
476

76,942
1,901
6,610
67,696
3,232
518

76.004
1.736
6,008
69,042
3,520
1,075

80,899
1,433
5,722
70,025
3,867
1,250

81,593
1,562
5,668
70,536
4,128
825

80,365
1,174
5,456
70,548
3,976
1,182

By type

2 Liabilities reported by banks in the United States2
3 U.S. Treasury bills and certificates3 ........................
U.S. Treasury bonds and notes
4 M arketable.................................................................
5 Nonmarketable4 .......................................................
6 U.S. securities other than U.S. Treasury securities5
By area

7
8
9
10
11
12

Western Europe1 ...........................................................
Canada ...........................................................................
Latin America and Caribbean ..................................
A s ia .................................................................................
Africa .............................................................................
Other countries6 ...........................................................

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.

3.15

5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
Based on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers in
the United States.
N ote.

LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1979
Item

1977

Dec.
1 Banks’ own liabilities ...................................................................................
2 Banks’ own claims1 .......................................................................................
3
D e p o s its .....................................................................................................
4
Other claim s...............................................................................................
5 Claims of banks’ domestic customers2 ....................................................

925
2,356
941
1,415

1. Includes claims of banks’ domestic customers through March 1978.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the accounts of
their domestic customers.




1980

1978

2,363
3,671
1,795
1,876
358
N ote.

thorities.

1,868
2,419
994
1,425
580

Mar.
2,358
2,772
1,212
1,560
1,058

June
2,693
2,955
1,048
1,908
798

Sept.
2,669
3,112
1,126
1,985
595

Dec.
3,737
4,104
2,506
1,598
962

Data on claims exclude foreign currencies held by U.S. monetary au-

Bank-Reported Data
3.16

LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

A57

Reported by Banks in the United States

Millions of dollars, end of period
1980
Holder and type of liability

1977

1978

July
1 All foreigners .............................................................
3

Aug.

Sept.

Oct.

Nov.

Dec.

Jan .p

126,168

166,877

187,492

188,295

201,402

191,683

195,827

204,882'

205,258

201,917

78,730
19,218
12,431
9,704
37,376

117,211
23,325
13,627
16,419
63,839

116,497
22,046
12,995
18,700
62,757

128,171
22,511
13,208
18,785
73,667

118,663
22,474
13,824
18,046
64,319

121,240
22,457
14,157
17,222
67,405

125,139'
22,847
14,773
17,in '70,401

124,751
23,377
15,164
17,583
68,627

122,442
22,129
15,657
14,867
69,789

88,147
68,202

70,281
48,573

71,797
49,627

73,231
51,505

73,020
50,731

74,587
51,990

79,743
56,484

80,506
57,595

79,475
57,667

17,446
2,499

19,359
2,350

19,438
2,732

19,141
2,586

19,778
2,511

19,967
2,630

20,624
2,635

20,079
2,832

19,036
2,773

3,274

2,607

2,356

2,903

2,820

2,549

2,734

2,476

2,342

1,961

906
330
84
492

714
260
151
303

607
214
93
299

501
171
101
229

476
141
100
235

352
115
95
143

383
187
92
104

442
146
85
211

419
212
71
137

1,701
201

1,643
102

2,296
604

2,319
644

2,073
316

2,382
581

2,093
337

1,900
254

1,542
88

1,499
1

1,538
2

1,692
0

1,675
0

1,757
0

1,800
0

1,756
0

1,646
0

1,453
0

4

Demand deposits.......................................................
Time deposits1 ...........................................................

18,996
11,521

8
9

U.S. Treasury bills and certificates5 ....................
Other negotiable and readily transferable

48,906

11 Nonmonetary international and regional

organizations7 .....................................................

1981

1979

13
14
15

Demand d eposits.......................................................
Time deposits1 ...........................................................
Other2 .........................................................................

231
139

17
18

U.S. Treasury bills and certificates ......................
O ther negotiable and readily transferable
instruments6 .......................................................
O th e r...........................................................................

706

20 Official institutions8 .................................................

65,822

90,706

78,142

77,193

79,260

80,279

79,207

84,706

86,604

83,451

3,528
1,797

12,129
3,390
2,550
6,189

18,228
4,704
3,041
10,483

17,071
4,218
2,705
10,148

17,591
3,898
3,006
10,688

18,548
4,348
3,477
10,724

16,182
3,406
3,390
9,387

16,897
3,553
3,623
9,721

17,806
3,771
3,592
10,443

15,174
3,869
3,348
7,957

47,820

78,577
67,415

59,914
47,666

60,122
47,982

61,669
49,811

61,731
49,361

63,025
50,392

67,808
55,104

68,798
56,243

68,277
56,525

10,992
170

12,196
52

12,092
48

11,805
54

12,307
63

12,542
90

12,648
56

12,501
54

11,723
30

42,335

57,495

88,352

90,111

100,788

89,979

95,012

97,759'

96,397

96,293

10,933
2,040

52,705
15,329
11,257
1,443
2,629

83,352
19,512
13,274
1,680
4,558

84,629
21,872
12,882
1,626
7,364

95,475
21,808
13,427
1,514
6,867

84,737
20,419
12,995
1,412
6,012

89,653
22,249
13,843
1,724
6,681

91,880'
21,478'
13,714
1,786
5,978'

90,439
21,812
14,104
1,811
5,897

90,212
20,423
12,867
1,834
5,723

Own foreign offices3 .................................................

37,376

63,839

62,757

73,667

64,319

67,405

70,401'

68,627

69,789

36 Banks’ custody liabilities4 ...........................................
37 U.S. Treasury bills and certificates ......................
38 O ther negotiable and readily transferable
instruments6 .......................................................
39 O th e r...........................................................................

4,790
300

5,000
422

5,482
557

5,313
577

5,241
361

5,359
515

5,880
529

5,959
623

6,081
647

2,425
2,065

2,405
2,173

2,395
2,530

2,435
2,301

2,533
2,347

2,417
2,427

2,883
2,467

2,748
2,588

2,856
2,578

14,736

16,070

18,642

18,088

18,533

18,876

18,874

19,941

19,914

20,211

4,304
7,546

12,990
4,242
8,353
394

14,918
5,087
8,755
1,075

14,190
4,732
8,570
888

14,604
5,014
8,588
1,002

14,901
4,991
8,836
1,075

15,052
5,093
8,948
1,011

15,979
5,393
9,272
1,315

16,065
5,356
9,676
1,033

16,636
5,181
10,405
1,050

240

3,080
285

3,725
382

3,898
484

3,930
473

3,975
693

3,822
502

3,962
513

3,849
474

3,575
407

2,531
264

3,220
123

3,259
154

3,226
231

3,181
100

3,208
112

3,337
112

3,185
190

3,004
164

11,007

10,974

10,500

10,433

10,704

10,799

10,553

10,745

10,108

19

21 Banks’ own liabilities ...................................................
22 Demand d ep o sits.......................................................
23 Time deposits1 ...........................................................
24
Other2 .........................................................................
25 Banks’ custody liabilities4 ...........................................
26 U.S. Treasury bills and certificates5 ....................
27
Other negotiable and readily transferable
instruments6 .......................................................
28
O th e r...........................................................................
29 Banks9 ........................................................................
30 Banks’ own liabilities ...................................................
31 Unaffiliated foreign b a n k s .......................................
32
Demand deposits...................................................
33
Time deposits1 .......................................................
34
Other2 .....................................................................
35

40 Other foreigners .......................................................
41 Banks’ own liabilities ...................................................
42 Demand deposits.......................................................
43 Time d eposits.............................................................
44 Other2 .........................................................................
45 Banks’ custody liabilities4 ...........................................
46 U.S. Treasury bills and certificates ......................
47
Other negotiable and readily transferable
instruments6 .......................................................
48 O th e r...........................................................................
49 M emo : Negotiable time certificates of deposit
in custody for foreigners ....................................

141

1. Excludes negotiable time certificates of deposit, which are included in “Other
negotiable and readily transferable instruments.” Data for time deposits before
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign sub­
sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­
ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term se­
curities, held by or through reporting banks.




5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time cer­
tificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in “Official institutions.”

A58
3.16

International Statistics □ March 1981
Continued
1980
Area and country

1977

1978

1981

1979
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan .p

1

126,168

166,877

187,492

188,295

201,402

191,683

195,827

204,882'

205,258

201,917

2 Foreign countries..........................................................

122,893

164,270

185,136

185,392

198,582

189,134

193,093

202,406'

202,916

199,956

3 Europe ..........................................................................
4 Austria .......................................................................
5 Belgium-Luxembourg..............................................
6
D enm ark....................................................................
7 Finland ......................................................................
8 France ........................................................................
9
G erm any....................................................................
10 G reece........................................................................
11
Ita ly ............................................................................
12 Netherlands ...............................................................
13 N o rw ay ......................................................................
14 Portugal ....................................................................
15 S p a in ..........................................................................
16 Sweden ......................................................................
17 Switzerland.................................................................
18 Turkey ........................................................................
19 United Kingdom ......................................................
20
Y ugoslavia.................................................................
Other Western Europe1 ..........................................
21
22
U .S.S.R.......................................................................
Other Eastern Europe2 ..........................................
23

60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236

85.169
513
2,550
1,946
346
9,214
17,286
826
7,739
2,402
1,271
330
870
3,121
18,225
157
14,265
254
3,440
82
330

90.935
413
2.375
1.092
398
10,433
12,935
635
7,782
2,327
1,267
557
1,259
2.005
17.954
120
24,694
266
4,070
S2
302

83,848
432
3,837
534
433
12.178
7,626
567
7,138
2,830
1.140
398
1.371
1.795
14.359
156
22,556
190
6,006
36
267

86,077
390
3,673
525
403
12,596
9,121
642
6.530
2,491
1,040
506
1,491
1.861
14.252
147
22.925
139
7,002
70
271

83,476
432
3,696
528
311
12,332
7,854
591
5,969
2,540
1,074
571
1,321
1,826
13,524
237
22,818
169
7,250
39
392

83,990
460
3,322
493
307
11,654
7,557
643
6,796
2,555
1,381
491
1,520
1,813
13,695
171
23,797
203
6.880
33
220

90,741'
519
3,696
586
363
12,380
9,171
711'
7,308
2,796'
1,444
437
1,379
1,811
16,574
257
24,443'
225
6,161
64
416

90,897
523
4,019
497
455
12,125
9,969
670
7,572
2.441
1,344
374
1,500
1,737
16,639
292
22,680
681
6,939
68
374

89,545
553
4,062
420
264
12,141
10,333
524
6,722
2,568
899
370
1,412
1,365
16,565
538
23,885
296
6,178
46
405

24 Canada ..........................................................................

4.607

6,969

7,379

9.228

9,187

10,234

9.992

9,871

10,031

9,774

25 Latin America and Caribbean ..................................
26
A rg en tin a..................................................................
27
B aham as....................................................................
28
B erm uda.....................................................................
29
B razil..........................................................................
30
British West In d ie s ..................................................
31
Chile ...........................................................................
32
Colombia ..................................................................
33 Cuba ..........................................................................
34
Ecuador ....................................................................
35
Guatemala3 ..............................................................
36 Jamaica3 ....................................................................
37
Mexico .......................................................................
Netherlands A n tilles................................................
38
39
P an am a......................................................................
40
P e ru ............................................................................
41
Uruguay .....................................................................
42
Venezuela..................................................................
43
Other Latin America and Caribbean ..................

23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,876
196
2,331
287
243
2,929
2,167

31,677
1,484
6,752
428
1.125
6,014
398
1,756
13
322
416
52
3,467
308
2,967
363
231
3,821
1,760

49.665
1,582
15,255
430
1,005
11,117
468
2,617
13
425
414
76
4.185
499
4,483
383
202
4,192
2.318

49,233
1,841
13.172
464
1.434
11.957
459
2.954
6
346
373
137
4.268
332
4.685
350
232
4.350
1,874

58.282
1,880
21.179
559
1.378
13,309
475
2.893
7
818
372
100
4.291
314
4,617
401
241
3,692
1.755

48,781
1,875
13,924
677
1,168
11.410
431
2,916
5
381
373
101
4,226
360
3,894
355
199
4,405
2,080

52,501
1,996
17,567
595
1,342
12,040
448
3.037
5
387
365
85
4,575
393
3,595
380
220
3,659
1,811

53,318'
1,996
16,803'
555
1,248
12,614'
456
2,962
6
437
359
79
4,583
568
4,575
345
244
3.667
1,819'

53,165
2,132
16,372
670
1.216
12,761
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,132

52,956
1,857
16,116
475
1,338
12,563
500
3,096
6
389
428
112
4,597
598
4,460
401
290
3,794
1,937

44 A s ia ................................................................................
China
M ainland.................................................................
Taiwan ..................................................................
Hong K o n g ................................................................
India ..........................................................................
Indonesia ..................................................................
Israel ...........................................................................
Japan ..........................................................................
Korea ........................................................................
Philippines ................................................................
T h a ila n d ....................................................................
Middle-East oil-exporting countries4 ....................
Other Asia .................................................................

30,488

36,492

33.013

38,048

39,880

41,847

40,880

41,999'

42,388

41,665

53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

67
502
1,256
790
449
688
21,927
795
644
427
7.534
1,414

49
1.393
1.672
527
504
707
8.907
993
795
277
15.309
1,879

38
1.438
2.186
494
849
488
12,547
1.482
935
405
15.378
1.808

37
1.552
1,994
631
649
569
14,059
1,473
778
304
15,801
2,033

38
1.595
2,204
529
827
534
15,414
1.994
814
517
15,409
1.972

46
1,610
2,150
485
811
530
15,354
1,809
838
403
14,611
2,232

62
1,636
2,410
438
715
548
15,720
1,764
803'
440
15,214
2,250

49
1,662
2,548
416
730
883
16,249
1,528
919
464
14,453
2,487

55
1,820
2,762
437
1,170
525
17,697
1,497
849
367
12,238
2,250

57 Africa .............................................................................
E gypt...........................................................................
58
59
M o ro cco ....................................................................
60
South A frica..............................................................
61
Z a ir e ...........................................................................
62
Oil-exporting countries5 ..........................................
63
Other Africa .............................................................

2,535
404
66
174
39
1,155
698

2,886
404
32
168
43
1.525
715

3,239
475
33
184
110
1.635
804

3,796
451
33
360
78
2,094
779

4,221
350
47
404
38
2,685
697

3,902
322
32
354
42
2,459
694

4,246
269
57
288
36
2,911
685

4,725
374
38
332
34
3,211
735

5,187
485
33
288
57
3,540
783

4,358
313
42
327
48
2,921
707

64 Other countries .............................................................
65
A ustralia.....................................................................
All o th e r .....................................................................
66

1.297
1,140
158

1,076
838
239

904
684
220

1,239
959
281

936
692
243

894
613
281

1,484
1,190
294

1,752'
1,419'
333

1,247
950
297

1,657
1,303
354

67 Nonmonetary international and regional
organizations ........................................................
International .............................................................
68
69
Latin American regional ........................................
70 Other regional6 ........................................................

3,274
2,752
278
245

2,607
1,485
808
314

2.356
1,238
806
313

2.903
1,804
785
314

2,820
1,736
800
285

2,549
1,389
837
323

2,734
1.586
841
307

2,476
1,366
801
309

2,342
1,156
890
296

1,961
913
769
279

45
46
47
48
49
50
51
52
53
54
55
56

1. Includes the Bank for International Settlements. Beginning April 1978. also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.




4. Comprises Bahrain, Iran, Iraq. Kuwait, Oman. Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria. Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in “Other Western
Europe."

Bank-Reported Data
3.17

A59

BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
A rea and country

1977

1978

July
1 Total ...............................................................................

1981

1979
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.P

90,206

115,603

133,919

151,218

163,401

161,518

162,658

167,396r

172,557

166,717

2 Foreign countries...........................................................

90,163

115,547

133,887

151,187

163,363

161,484

162,618

l#7,363r

172,488

166,672

3 Europe ...........................................................................
4
Austria .......................................................................
5 Belgium-Luxembourg...............................................
6 D enm ark.....................................................................
7 Finland .......................................................................
8 France .........................................................................
9
G erm any.....................................................................
10 G reece.........................................................................
11
Ita ly .............................................................................
12 Netherlands ...............................................................
13 N o rw a y .......................................................................
14 Portugal .....................................................................
15 S p a in ...........................................................................
16 Sweden .......................................................................
17 Switzerland.................................................................
18 T urkey.........................................................................
19 United Kingdom .......................................................
20
Yugoslavia .................................................................
21
Other Western Europe1 ...........................................
22
U .S.S.R........................................................................
23
Other Eastern Europe2 ...........................................

18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566

24,232
140
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,172
363
122
366
657

28,429
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,814
611
175
290
1,254

28,439
309
1,622
149
223
2,582
1,004
279
2,295
492
270
346
1,011
534
1,319
143
13,175
648
170
531
1,336

29,411
280
1,881
164
215
3,288
1,131
265
2,433
632
231
335
1,139
558
1,581
137
12,651
647
172
232
1,438

29,722
264
1,954
180
184
3,232
1,018
221
2,560
546
248
330
1,106
716
1,337
144
13,080
682
245
241
1,434

29,259
196
1,680
132
253
2,551
987
278
2,842
557
335
341
1,113
763
1,564
123
12,950
684
226
257
1,427

32,520'
250
1,946
165
248
3,506'
1,506
265
3,063'
749
138
393
1,111'
633
1,932
149
13,885
689
234
271
1,389

32,045
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,807
853
179
281
1,457

30,478
251
1,722
126
334
2,716
1,006
264
3,136
642
289
305
1,136
691
1,753
146
13,027
866
347
251
1,469

24 Canada ...........................................................................

3,355

5,152

4,143

4,654

4,775

5,255

4,614

4,542

4,810

4,157

25 Latin America and Caribbean ..................................
26
A rg en tin a...................................................................
27
B aham as.....................................................................
28
B erm uda.....................................................................
29
B razil...........................................................................
30
British West Indies ...................................................
31
Chile ...........................................................................
32
Colombia ...................................................................
33
C u b a ...........................................................................
34
Ecuador .....................................................................
35
Guatemala3 ...............................................................
36 Jamaica3 .....................................................................
37
Mexico .......................................................................
38
Netherlands A n tille s.................................................
39
P an am a.......................................................................
40
P e ru .............................................................................
41
Uruguay .....................................................................
42
V enezuela...................................................................
Other Latin America and Caribbean ..................
43

45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,909
224
1,410
962
80
2,318
1,394

57,567
2,281
21,555
184
6,251
9,692
970
1,012
0
705
94
40
5,479
273
3,098
918
52
3,474
1,490

68,011
4,389
18,918
496
7,720
9,822
1,441
1,614
4
1,025
134
47
9,099
248
6,031
652
105
4,669
1,598

78,690
5,234
28,710
194
8,989
8,637
1,359
1,448
4
1,051
153
31
10,660
760
4,552
647
91
4,469
1,700

89,253
5,393
31,866
256
9,251
14,570
1,487
1,490
3
1,136
102
31
10,785
725
4,931
687
105
4,737
1,697

85,768
5,629
30,269
216
9,639
11,980
1,627
1,493
6
1,111
105
33
11,123
710
4,461
671
100
4,879
1,715

87,665
5,859
30,275
399
10,135
12,630
1,721
1,575
3
1,157
112
35
11,745
799
3,972
719
100
4,710
1,721

89,263
6,270
29,679
260
10,001'
13,674'
1,730
1,582
3
1,157
114
40
12,014
816
4,367
749
105
5,113
1,591'

92,971
5,693
29,378
218
10,477
15,702
1,951
1,754
3
1,190
137
36
12,586
821
4,974
890
137
5,438
1,585

90,617
5,656
28,233
285
10,243
14,531
1,843
1,648
4
1,220
114
33
12,634
835
5,028
912
110
5,515
1,775

44 A s ia .................................................................................
China
M ainland.................................................................
45
46
Taiwan ...................................................................
47
Hong K o n g .................................................................
India ...........................................................................
48
49
Indonesia ...................................................................
50 I s r a e l...........................................................................
51 Japan ...........................................................................
52
Korea .........................................................................
53
Philippines .................................................................
54 T h a ila n d .....................................................................
55
Middle East oil-exporting countries4 ....................
Other Asia .................................................................
56

19,236

25,386

30,652

36,282

36,927

37,620

37,806

37,961'

39,118

38,388

10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

4
1,499
1,479
54
143
888
12,671
2,282
680
758
3,125
1,804

35
1,821
1,804
92
131
990
16,946
3,798
737
935
1,548
1,813

68
2,224
2,174
97
205
950
20,595
5,523
881
939
1,120
1,506

50
2,284
2,063
118
245
1,012
21,205
5,464
1,019
947
1,040
1,480

117
2,492
2,099
84
208
918
20,663
5,574
1,169
947
1,471
1,876

126
2,332
1,980
103
214
1,055
20,607
5,885
1,081
925
1,258
2,240

187
2,382
2,094'
125
248
1,125'
20,323'
5,844'
1,122'
974'
1,538
1,999

195
2,469
2,247
142
245
1,172
21,356
5,697
989
876
1,494
2,236

225
2,410
2,252
110
280
1,081
21,187
5,724
841
814
1,436
2,027

57 Africa .............................................................................
58 E g y p t...........................................................................
59 M o ro cco .....................................................................
60
South A frica...............................................................
Z a ir e ...........................................................................
61
62
Oil-exporting countries5 ...........................................
63
O th e r...........................................................................

2,518
119
43
1,066
98
510
682

2,221
107
82
860
164
452
556

1,797
114
103
445
144
391
600

2,179
112
134
691
107
378
757

1,977
135
180
469
98
349
746

2,029
123
166
535
101
374
729

2,090
159
119
440
123
469
780

1,933
165
146
375
98
402
747

2.377
151
223
370
94
805
734

1,910
175
186
337
96
410
707

64 Other countries .............................................................
65 A ustralia.....................................................................
66 All o th e r .....................................................................

1,090
905
186

988
877
111

855
673
196

943
743
200

1,021
793
228

1,091
879
213

1,185
942
243

1,143
915
228

1,166
859
307

1,122
827
295

67 Nonmonetary international and regional
organizations6 .......................................................

43

56

32

31

38

34

40

34

70

44

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “O ther Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in “Other
Western Europe.”
N o t e . Data for period prior to April 1978 include claims of banks’ domestic
customers on foreigners.

A60
3.18

International Statistics □ March 1981
BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1981

1980
Type of claim

1 Total ........................................................................
2
3
4
5
6
7
8

90,206

Banks’ own claims on foreigners ........................
Foreign public borrow ers......................................
Own foreign offices1 ...............................................
Unaffiliated foreign b a n k s ....................................
Deposits ...............................................................
O th e r.....................................................................
All other foreigners ..............................................

9 Claims of banks’ domestic customers2 ..............
10 D e p o s its ...................................................................
11 Negotiable and readily transferable instruments3
12 Outstanding collections and other claims4 ........
13

M em o:

6,176

Customer liability on acceptances ........

Dollar deposits in banks abroad, reported by nonbankmg business enterprises in the United
States5 ...................................................................

Aug.

151,218
16,659
58,520
42,007
6,165
35,842
34,032

163,401
17,419
64,051
47,500
7,250
40,250
34,431

Oct.

N ov/

162,658
19,046
61,613
46,574
7,136
39,438
35,425

167,396
20,661
62,397
49,071
7,579
41,493
35,267

Sept.

187,008

D ec/

126,851

154,017

115,603
10,312
41,628
40,496
5,428
35,067
23,167

133,919
15,580
47,475
40,969
6,253
34.716
29,896

11,248
480
5.414
5,353

20,098
955
13,124
6,019

25,490
1,081
15,260
9,148

26,106
885
15,574
9,648

14,969

18,058

23,533

22,821

13,162

21,578

25.546'

24,245'

161,518
18,969
61,879
46,008
7,216
38,792
34,661

22,057'

Jan.P

198,663

22,667'

24,491'

172,557
20,668
64,968
50,204
8,258
41,947
36,717

166,717
20,645
63,757
46,079
7,190
38,889
36,236

21,177

4. Data for March 1978 and for period prior to that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certif­
icates of deposit denominated in U.S. dollars issued by banks abroad. For descrip­
tion of changes in data reported by nenbanks, see July 1979 B u l l e t in , p. 550.

1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in “Consolidated Report of Condition” filed with bank
regulatory agencies. Agencies, branches, and m ajority-owned subsidiaries o f foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.

3.19

July

N o t e . Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks;' own domestic customers are available on
a quarterly basis only.

BANKS’ OWN CLAIMS ON UN AFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979

1978

1980

Maturity; by borrower and area
Dec.
1 Total ........................................................................................................

Sept.

Dec.

Mar.

June

Sept.

Dec.

73,771

87,580

86,261

85,227

92,748

98,892

106,296

58,481
4,633
53,849
15,289
5,361
9,928

68,404
6.142
62.262
19.176
7,652
11.524

65,251
7,127
58.125
21,009
8.114
12,895

63.868
6,778
57,090
21,359
8,430
12,929

71,368
7,089
64,279
21,380
8,515
12,865

76,096
8,639
67,458
22,796
9,592
13,204

82,197
9,573
72,624
24,099
10,089
14,010

15,176
2,670
20,990
17,579
1.496
569

16,799
2.471
25.690
21,519
1,401
524

15,254
1,777
24,974
21,673
1,080
493

13,844
1,818
23,178
23,358
1,043
627

17,141
2,013
24,417
25,753
1,320
7 4

16,880
2,166
28,007
26,892
1,401
751

18,544
2,721
32,065
26,440
1,756
671

3,142
1,426
8,464
1,407
637
214

3,653
1.364
11,771
1.578
623
188

4.140
1,317
12,821
1.911
652
169

4,248
1,214
13,397
1,728
620
152

4,033
1,199
13,902
1,524
576
146

4,715
1,188
14,192
2,009
567
126

5,095
1,447
15,017
1,862
507
171

By borrower

2 Maturity of 1 year or less1 ...........................................................................
3 Foreign public borrow ers.........................................................................
4
All other foreigners .................................................................................
5 Maturity of over 1 year1 .............................................................................
6
Foreign public borrow ers.........................................................................
7 All other foreigners .................................................................................
By area

8
9
10
11
12
13
14
15
16
17
18
19

Maturity of 1 year or less1
Europe .......................................................................................................
Canada .......................................................................................................
Latin America and Caribbean ..............................................................
A sia .............................................................................................................
Africa .........................................................................................................
A llother2 ...................................................................................................
Maturity of over 1 year1
Europe .......................................................................................................
Canada .......................................................................................................
Latin America and Caribbean ..............................................................
A s ia .............................................................................................................
Africa .........................................................................................................
All other2 ...................................................................................................

1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.




Bank-Reported Data
3.20

A61

CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1980

1979
Area or country

1976

1977

19782
Mar.

June

Sept.

Dec.

Mar.

June

Sept.

Dec.P

1 Total .......................................................................................................

206.8

240.0

266.2"

263.9"

275.6

293.9

303.8

308.0"

328.2

338.6"

352.1

2 G-10 countries and S w itzerland.........................................................
3 Belgium-Luxembourg.......................................................................
4 France .................................................................................................
5 G erm any.............................................................................................
6 Ita ly .....................................................................................................
7 Netherlands .......................................................................................
8 Sweden ...............................................................................................
9
Switzerland.........................................................................................
10 United Kingdom ...............................................................................
11
Canada ...............................................................................................
12 Japan ...................................................................................................

100.3
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.7
5.1
15.9

116.4
8.4
11.0
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8

124.7"
9.0
12.2
11.3
6.7
4.4
2.1
5.3
47.3
6.0
20.6

119 .O"

9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4
5.9
19.0

125.3
9.7
12.7
10.8
6.1
4.0
2.0
4.7"
50.3
5.5
19.5

135.7"
10.7
12.0
12.8
6.1
4.7
2.3
5.0
53.7
6.0
22.3

138.4
11.1
11.7"
12.2
6.4
4.8
2.4
4.7"
56.4
6.3
22.4

140.8"
10.8
12.0
11.4
6.2
4.3
2.4
4.3"
57.6
6.8
25.1"

154.3"
13.1
14.0"
12.7
6.9
4.5
2.7
3.3"
64.4"
7.2
25.5"

158.9
13.5
13.9
12.9
7.2
4.4
2.8
3.4
66.7
7.9
26.1

161.7
12.9
14.0
11.5
8.2
4.4
2.9
4.0
68.5
8.4
26.8

13 Other developed countries .................................................................
14 Austria ...............................................................................................
15 D enm ark.............................................................................................
16 Finland ...............................................................................................
17
G reece.................................................................................................
18 N o rw ay ...............................................................................................
19 Portugal .............................................................................................
20
S p a in ...................................................................................................
21
T urkey.................................................................................................
22
Other Western Europe ...................................................................
23
South A frica.......................................................................................
24
A ustralia.............................................................................................

15.0
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2

18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4

19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4

18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3

18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9
1.8
1.4

19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3

19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3

18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2

20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2

20.6
1.8
2.2
1.2
2.6
2.4
.7
4.2
1.3
1.7
1.2
1.2

21.2
1.9
2.2
1.4
2.8
2.6
.6
4.0
1.5
1.8
1.1
1.3

25 OPEC countries3 ...................................................................................
26
Ecuador .............................................................................................
27
V enezuela...........................................................................................
28
Indonesia ...........................................................................................
29
Middle East countries .....................................................................
30
African countries...............................................................................

12.6
.7
4.1
2.2
4.2
1.4

17.6
1.1
5.5
2.2
6.9
1.9

22.7
1.6
7.2
2.0
9.5
2.5

22.6
1.5
7.2
1.9
9.4
2.6

22.7
1.6
7.6
1.9
9.0
2.6

23.4
1.6
7.9
1.9
9.2
2.8

22.9
1.7
8.7
1.9
8.0
2.6

21.8
1.8
7.9
1.9
7.8
2.5

20.9
1.8
7.9
1.9
6.9
2.5

21.4
1.9
8.5
1.9
6.7
2.4

22.8
2.1
9.1
1.8
7.0
2.8

31 Non-OPEC developing co u n trie s......................................................

44.2

48.7

52.6

53.9

55.9

58.8

62.8

63.7

67.4"

72.8

76.9

1.9
11.1
.8
1.3
11.7
1.8
2.8

2.9
12.7
.9
1.3
11.9
1.9
2.6

3.0
14.9
1.6
1.4
10.8
1.7
3.6

3.1
14.9
1.7
1.5
10.9
1.6
3.5

3.5
15.1
1.8
1.5
10.7
1.4
3.3

4.1
15.1
2.2
1.7
11.4
1.4
3.6

5.0
15.2
2.5
2.2
12.0
1.5
3.7

5.5
15.0
2.5
2.1
12.1
1.3
3.6

5.6
15.3
2.7
2.2
13.6
1.4
3.6

7.6
15.8
3.2
2.4
14.4
1.5
3.9

7.9
16.2
3.5
2.7
15.9
1.8
3.9

.0
2.4
.2
1.0
3.1
.5
2.2
.7
.5

.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4

.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2

.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.3

.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4

.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.3

.1
3.4
.2
1.3
5.5
.9
4.2
1.6
.4

.1
3.6
.2
.9
6.5
.8
4.4
1.4
.4

.1
3.8"
.2
1.2
7.1
.9
4.6
1.5
.5

.1
4.1
.2
1.1
7.3
.9
4.8
1.5
.5

.2
4.2
.3
1.5
7.1
1.0
5.0
1.4
.6

E g y p t...................................................................................................
M o ro cco .............................................................................................
Z a ir e ...................................................................................................
Other Africa5 .....................................................................................

.4
.3
.2
1.2

.3
.5
.3
.7

.4
.6
.2
1.4

.5
.6
.2
1.4

.7
.5
.2
1.5

.6
.5
.2
1.6

.6
.6
.2
1.7

.7
.5
.2
1.8

.7
.5
.2
1.8

.7
.6
.2
2.0

.8
.7
.2
2.0

52 Eastern E u r o p e .....................................................................................
53
U .S.S.R................................................................................................
54 Y ugoslavia.........................................................................................
55
Other ...................................................................................................

5.2
1.5
.8
2.9

6.3
1.6
1.1
3.7

6.9
1.3
1.5
4.1

6.7
1.1
1.6
4.0

6.7
.9
1.7
4.1

7.2
.9
1.8
4.6

7.3
.7
1.8
4.8

7.3
.6
1.9
4.9

7.2
.5
2.1
4.5"

7.3
.5
2.1
4.7

7.5
.4
2.3
4.7

56 Offshore banking c e n te rs .....................................................................
57 B aham as.............................................................................................
58 B erm uda.............................................................................................
59
Cayman Islands and other British West Indies ..........................
60 Netherlands A n tilles.........................................................................
61
Panama6 .............................................................................................
62 Lebanon .............................................................................................
63
Hong K o n g .........................................................................................
64
S ingapore...........................................................................................
65
Others7 ...............................................................................................

24.7
10.1
.5
3.8
.6
3.0
.1
2.2
4.4
.0

26.1
9.9
.6
3.7
.7
3.1
.2
3.7
3.7
.5

30.9
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5

33.7
12.3
.6
7.1
.8
3.4
.1
4.8
4.2
.4

37.0
14.4
.7
7.4
1.0
3.8
.1
4.9
4.2
.4

38.6
13.0
.7
9.5
1.1
3.4
.2
5.5
4.9
.4

40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4

42.6
14.0
.6
11.3
.9
4.9
.2
5.7
4.7
.4

43.9"
13.6
.6
9.5
1.2"
5.6
.2
6.9
5.9
.4

44.1
12.9
.6
10.0
1.3
5.6
.2
7.4
5.6
.4

47.1
13.3
.6
10.3
2.0
6.3
.2
8.1
5.9
.3

66 Miscellaneous and unallocated8 .........................................................

5.0

5.3

9.1

9.5

9.9

10.6

11.7

13.1

14.3

13.7

15.1

Latin Am erica

32
33
34
35
36
37
38

A rg en tin a...........................................................................................
B razil...................................................................................................
Chile ...................................................................................................
Colombia ...........................................................................................
Mexico ...............................................................................................
Other Latin America .......................................................................
Asia

39
40
41
42
43
44
45
46
47

China
M ainland.........................................................................................
Taiwan ...........................................................................................
India ...................................................................................................
I s r a e l...................................................................................................
Korea (South) ...................................................................................
Malaysia4 ...........................................................................................
Philippines .........................................................................................
T h a ila n d .............................................................................................
Other A s i a .........................................................................................
Africa

48
49
50
51

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ad­
justed to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices
in this table include only banks’ own claims payable in dollars. For earlier dates




the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates)
as well as Bahrain and Oman (not formally members of OPEC).
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Includes Canal Zone beginning December 1979.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.

A62
3.21

International Statistics □ March 1981
MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Holdings and Transactions

Millions of dollars
1981

Country or area
JanJan.

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.P

Holdings (end of period)1
1 Estimated total2 ........................................

51,344

57,416

54,884

54,120

55,869

56,553

57,217

57,416

58,482

2 Foreign countries2 ....................................

45,915

52,828

50,590

49,992

51,173

52,075

52,867

52,828

53,948

3 Europe2 ......................................................
4 Belgium-Luxembourg..........................
5 Germany2 ..............................................
6 Netherlands ..........................................
7 S w e d en ..................................................
8 Switzerland2 ..........................................
9 United Kingdom ..................................
10 Other Western Europe ......................
11
Eastern E u ro p e ....................................
12 Canada ......................................................

24,824
60
14,056
1,466
647
1,868
6,236
491
0
232

24,333
77
12,335
1,884
595
1,485
7,180
777
0
449

25,259
45
13,697
1,547
650
1,675
7,074
571
0
481

24,643
89
13,097
1,522
640
1,675
7,089
531
0
469

25,016
91
13,110
1.640
611
1,566
7,456
542
0
480

24,783
78
12,823
1,658
607
1,517
7,538
562
0
503

24,708
74
12,758
1,777
614
1,489
7,411
584
0
532

24,333
77
12,335
1,884
595
1,485
7,180
111

25,171
80
12,789
1,954
555
1,561
7,435
796

0
449

458

13
14
15
16
17
18
19
20

Latin America and Caribbean ..............
Venezuela..............................................
Other Latin America and Caribbean
Netherlands A n tilles............................
A s ia ............................................................
Japan ......................................................
Africa ........................................................
A llo th e r....................................................

466
103
200
163
19,805
11,175
591
-3

999
292
285
421
26.110
9,479
922
14

690
248
242
200
23,575
9.614
592
-6

706
261
240
205
23,585
9,465
592
-5

768
302
241
225
24,292
9,444
617
0

768
292
255
221
25,331
9.503
685
5

942
292
278
372
25,966
9,547
715
4

999
292
285
421
26,110
9,479
922
14

998
292
281
425
26,335
9,527
973
14

21 Nonmonetary international and regional
organizations ....................................

5,429

4,588

4,294

4,128

4.696

4,478

4,350

4,588

4,534

22
23

5,388
37

4,548
36

4,234
60

4,066
60

4,632
65

4,430
44

4,302
44

4,548
36

4,505
26

International ........................................
Latin American regional ....................

Transactions (net purchases, or sales ( - ) during period)
24 Total2 ..........................................................

6,397

6.072

1,066

692

-7 6 7

1,752

681

25 Foreign countries2 ....................................
26 Official institutions ..............................
27 Other foreign2 ......................................

6,099
1,697
4,403

6,913
3,841
3.072

1.120
887
232

795
762
33

-5 9 8
-7 4 5
146

1.181
998
183

903
664
240

28 Nonmonetary international and regional
organizations ....................................

301

-5 3

-1 0 4

-168

571

Memo: Oil-exporting countries
29 Middle East3 ............................................
30 Africa4 ........................................................

-1,014
- 100

325
51

598
100

140
0

601
25

7,672
330

561
30

-3 9
-334
294

1,120
887
232

238

-5 3

358
207

325
51

2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran. Iraq. Kuwait, Oman, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon. Libya, and Nigeria.

1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31. 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.

3.22

990
68

1,066
792
302
490

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1980
Assets

1978

1979

Aug.
1 D e p o sits........................................................................

1981

1980
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.P

367

429

441

336

460

368

368

411

573

422

117.126
15,463

95,075
15,169

104,490
14,893

96,504
15,025

96,227
14,987

98,121
14,986

102,786
14,968

102,417
14,965

104,490
14,893

106,389
13,835

Assets held in custody

2 U.S. Treasury securities1 ............................................
3 Earmarked gold2 ..........................................................

1. Marketable U.S. Treasury bills, notes, and bonds: and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.




N o t e . Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,

In vestm en t T ransactions
3.23

A 63

FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1981

1980

1981

1980

1979

Transactions, and area or country

Jan.Jan.

July

Aug.

U .S .

Sept.

Oct.

Nov.

Dec.

Jan.P

corporate securities

S to ck s

1 Foreign pu rch ases.........................................................
2 Foreign sales .................................................................

22.781
21,123

40,320
35,044

3,419
3,001

3.110
2,800

3,505
3,301

3,569
3,329

4,438
3,920

4,457
3,588

4,345
3,783

3,419
3,001

3 Net purchases, or sales ( - ) ........................................

1,658

5,276

417

310

203

241

519

869

562

417

4 Foreign countries..........................................................

1,642

5,258

406

308

205

246

524

867

540

406

Europe ...........................................................................
France .........................................................................
G erm any.....................................................................
Netherlands ..............................................................
Switzerland.................................................................
United Kingdom ......................................................
Canada ...........................................................................
Latin America and Caribbean ..................................
Middle E ast1 .................................................................
Other A s i a .....................................................................
Africa .............................................................................
Other countries .............................................................

217
122
-221
-7 1
-5 1 9
964
552
-1 9
688
211
-1 4
7

3,036
479
184
-3 2 8
308
2,502
847
143
1,206
-4
-1
30

296
74
18
42
105
177
26
63
63
-2 4
2
-2 0

115
62
-1 3
-2 7
-82
188
81
-2 5
141
-5
-1
2

42
30
-2 1
-2 6
-1 2 7
216
13
-3 2
183
-2 2
0
21

-8 3
-3 3
-1 8
-3 8
-1 2 2
153
-22
-8 3
410
19
2
4

300
53
35
-2 9
83
172
-6 6
132
126
33
2
-3

633
109
121
-5 8
265
251
263
57
-1 0 9
18
0
5

222
57
7
-1 7
-8 8
299
230
-1 2
177
-6 8
-2
-6

296
74
18
42
105
177
26
63
63
-2 4
2
-2 0

17 Nonmonetary international and regional
organizations ........................................................

17

18

12

2

-2

-5

-6

2

22

12

18 Foreign p u rch ases........................................................
19 Foreign sales .................................................................

8,803
7,608

15,356
9,968

1,603
817

1.695
898

1,087
589

645
481

1,612
739

1,181
902

946
826

1,603
817

20 Net purchases, or sales ( —) ........................................

1,195

5,387

787

797

498

165

873

278

121

787

21 Foreign countries...........................................................

1,330

5,453

760

769

475

214

918

283

107

760

22
23
24
25
26
27
28
29
30
31
32
33

Europe ...........................................................................
F ra n c e .........................................................................
G erm any.....................................................................
Netherlands ...............................................................
Switzerland.................................................................
United Kingdom .......................................................
Canada ...........................................................................
Latin America and Caribbean ..................................
Middle East1 .................................................................
Other A s i a .....................................................................
Africa .............................................................................
Other countries .............................................................

626
11
58
-202
-1 1 8
814
80
109
424
88
1
1

1,585
143
213
-6 5
54
1,252
135
185
3,416
117
5
10

214
4
49
6
22
124
7
1
542
-1
0
-4

129
8
-5 0
-2 6
-1 6
196
-2
29
600
13
0
1

27
6
-1 1
-7
-9
53
25
32
382
9
0
0

-2 3
-2
4
7
0
-5
12
18
194
14
0
-2

284
16
30
8
1
235
9
7
594
24
0
0

151
12
13
-7
8
154
21
11
105
-3
0
-1

-2 6
12
22
17
14
-1 1 3
-7
-5
113
32
0
0

214
4
49
6
22
124
7
1
542
-1
0
-4

34 Nonmonetary international and regional
organizations .........................................................

-1 3 4

-6 5

27

28

23

-4 9

5
6
7
8
9
10
11
12
13
14
15
16

B o n d s2

-4 5

-4

14

27

Foreign securities
35 Stocks, net purchases, or sales ( - ) ..........................
36 Foreign p u rch ases....................................................
37 Foreign sales .............................................................

-7 8 6
4,615
5,401

-2.239
7,870
10.108

36
695
659

-7 6
654
731

-201
605
805

-5 5 8
694
1.253

-3 3 5
788
1,143

129
927
798

-6 8
721
788

36
695
659

38 Bonds, net purchases, or sales ( - ) ...................
39 Foreign p u rch ases.....................................................
40 Foreign sales .............................................................

-3.855
12.672
16,527

-835
17,062
17,898

-235
1,142
1.378

374
1.725
1.351

-2 5 9
1,374
1,634

-8 4
1.231
1,316

-2 0 6
1,651
1,857

91
1,252
1.161

274
1.786
1,512

-2 3 5
1,142
1,378

..

-4,641

-3,074

-2 0 0

298

-4 6 0

-6 4 3

-5 6 1

219

206

-2 0 0

Foreign countries...........................................................
Europe ...........................................................................
Canada ...........................................................................
Latin America and Caribbean ..................................
A s ia .................................................................................
Africa .............................................................................
Other countries .............................................................

-3,891
-1,646
-2,601
347
44
-6 1
25

-3,950
-9 5 8
-2,094
126
-1,131
24
81

-2 5 9
-1 1 6
-4
51
-175
-1 0
-4

-3 2
10
-2 9
34
-5 5
1
7

-3 8 4
-1 7 6
42
-1 4
-3 1 3
0
76

-6 8 0
-1 1 0
-3 4 4
7
-2 2 3
-4
-6

-5 7 6
113
-651
-3 5
-1 6
29
-1 6

196
-30
327
-2 4
-73
-1
-3

-1 7 7
-8 6
24
-1 1
-8 4
-1 3
-7

-2 5 9
-1 1 6
-4
51
-1 7 5
-1 0
-4

49 Nonmonetary international and regional
organizations .........................................................

-7 5 0

876

59

330

-7 6

37

15

23

383

59

41 Net purchases, or sales ( - ) , of stocks and bonds
42
43
44
45
46
47
48

1. Comprises oil-exporting countries as follows: Bahrain, Iran. Iraq, Kuwait.
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).




2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securities sold
abroad by U.S. corporations organized to finance direct investments abroad.

A64
3.24

International Statistics □ March 1981
LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1979
Type, and area or country

1978

1980

1979
June

Sept.

Dec.

June.

Mar.

Sept.

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

14,879

16,950

15,519

15,700

16,950

17,373

18,472

18,406

2 Payable in d o lla rs .......................................................................................
3 Payable in foreign currencies2 ................................................................

11,516
3,363

13,932
3,018

12,631
2,888

12,692
3,008

13,932
3,018

14,437
2,936

15,105
3,366

15,203
3,203

4 Financial liabilities.....................................................................................
5 Payable in d o lla rs ...................................................................................
6 Payable in foreign currencies ...............................................................

6,305
3,841
2,464

7,311
5,101
2,210

6,049
3,876
2,173

6,131
3,877
2,254

7,311
5,101
2,210

7,802
5,618
2,184

8,307
5,751
2,556

8,125
5,707
2,418

7 Commercial liabilities ...............................................................................
8 Trade payables .......................................................................................
9 Advance receipts and other liabilities................................................

8,574
4,008
4,566

9,639
4,380
5,258

9,470
4,302
5,168

9,568
4,051
5,518

9,639
4,380
5,258

9,571
4,138
5,433

10,165
4,265
5,899

10,281
4,370
5,911

7,675
899

8,830
808

8,755
715

8,815
754

8,830
808

8,819
752

9,355
810

9,496
785

3,903
289
167
366
390
248
2,110

4,579
345
168
497
834
168
2,372

3,582
355
134
283
401
235
1,955

3,713
317
126
381
542
190
1,957

4,579
345
168
497
834
168
2,372

4,813
360
188
520
801
172
2,568

5,392
422
341
657
783
238
2,783

5,214
404
327
557
766
224
2,761

By type

10
11

Payable in d o lla rs ...................................................................................
Payable in foreign cu rren c ies...............................................................

12
13
14
15
16
17
18

Financial liabilities
E u ro p e .....................................................................................................
Belgium-Luxembourg .......................................................................
France ...................................................................................................
Germany .............................................................................................
N etherlands.........................................................................................
Switzerland .........................................................................................
United K ingdom .................................................................................

By area or country

19

Canada .....................................................................................................

244

445

290

304

445

383

482

456

20
21
22
23
24
25
26

Latin America and Caribbean .............................................................
Baham as...............................................................................................
Bermuda .............................................................................................
Brazil ...................................................................................................
British West In d ie s.............................................................................
M ex ic o .................................................................................................
Venezuela ...........................................................................................

1,357
478
4
10
194
102
49

1,483
375
81
18
514
121
72

1,395
477
2
19
189
131
68

1,347
390
2
14
198
122
71

1,483
375
81
18
514
121
72

1,764
459
83
22
694
101
70

1,633
434
2
25
700
101
72

1,718
412
1
20
685
108
74

27
28
29

Japan ...................................................................................................
Middle East oil-exporting countries3 ............................................

791
714
32

795
723
31

772
706
25

757
700
19

795
723
31

821
737
26

775
680
31

705
615
37

30
31

A fric a .......................................................................................................
Oil-exporting countries4 ...................................................................

5
2

4
1

6
2

5
1

4
1

11
1

10
1

11
1

32

A llother5 .................................................................................................

5

4

5

5

4

10

15

21

33
34
35
36
37
38
39

Commercial liabilities
E u ro p e .....................................................................................................
Belgium-Luxembourg .......................................................................
France ...................................................................................................
Germany .............................................................................................
N etherlands.........................................................................................
Switzerland .........................................................................................
United K ingdom .................................................................................

3,033
75
321
529
246
302
824

3,621
137
467
534
227
310
1,073

3,303
81
353
471
230
439
997

3,393
103
394
539
206
348
1,015

3,621
137
467
534
227
310
1,073

3,682
117
503
533
288
382
994

4,008
132
485
714
245
462
1,120

4,010
107
486
670
272
451
1,024

40

Canada .....................................................................................................

667

868

663

717

8(38

720

591

590

41
42
43
44
45
46
47

Latin A m erica.........................................................................................
Baham as...............................................................................................
Bermuda .............................................................................................
Brazil ...................................................................................................
British West In d ie s .............................................................................
M ex ic o .................................................................................................
Venezuela ...........................................................................................

997
25
97
74
53
106
303

1,323
69
32
203
21
257
301

1,335
65
82
165
121
216
323

1,401
89
48
186
21
270
359

1,323
69
32
203
257
301

1,253
4
47
228
20
235
211

1,271
26
107
151
37
272
210

1,361
8
114
156
12
324
293

48
49
50

Japan ...................................................................................................
Middle East oil-exporting countries3 ............................................

2,932
448
1,523

2,865
488
1,017

3,034
516
1,225

2,996
517
1,070

2,865
488
1,017

2,912
578
901

3,053
411
1,019

2,889
492
937

51
52

A fric a .......................................................................................................
Oil-exporting countries4 ...................................................................

743
312

728
384

891
410

775
370

728
384

742
382

875
498

1,036
633

53

A llother5 .................................................................................................

203

233

243

287

233

263

367

396

1. For a description of the changes in the International Statistics tables, see July
1979 B u l l e t in , p. 550.
2. Before December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.




21

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data
3.25

CLAIMS ON UN AFFILIATED FOREIGNERS
United States1

A65

Reported by Nonbanking Business Enterprises in the

Millions of dollars, end of period
1980

1979
Type, and area or country

1978

1979
Sept.

June

Dec.

June

Mar.

Sept.

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

27,859

30,859

30,296

30,949

30,859

31,953

31,850

31,374

2 Payable in d o lla rs .......................................................................................
3 Payable in foreign currencies2 .................................................................

24,861
2,998

27,703
3,156

27,394
2,902

28,280
2,668

27,703
3,156

28,956
2,997

28,808
3,042

28,240
3,134

4 Financial claims .........................................................................................
5 D eposits...................................................................................................
6
Payable in d o lla rs ...............................................................................
7
Payable in foreign currencies ...........................................................
O ther financial claims ...........................................................................
8
9
Payable in d o lla rs ...............................................................................
10
Payable in foreign c u rren c ies...........................................................

16,522
11,062
10,000
1,061
5,461
3,855
1,606

18,107
12,461
11,572
889
5,646
3,792
1,854

19,303
13,643
12,706
938
5,660
4,059
1,601

19,176
13,730
12,830
901
5,446
4,030
1,416

18,107
12,461
11,572
889
5,646
3,792
1,854

19,237
13,563
12,601
963
5,673
4,046
1,627

18,499
12,658
11,778
879
5,841
4,103
1,737

18,164
12,099
11,018
1,081
6,065
4,395
1,670

11 Commercial claim s.....................................................................................
12 Trade receivables...................................................................................
13 Advance payments and other claims ................................................

11,337
10,778
559

12,752
12,064
688

10,993
10,364
628

11,773
11,061
712

12,752
12,064
688

12,716
12,071
645

13,352
12,656
695

13,210
12,521
689

14
15

Payable in d o lla rs ...................................................................................
Payable in foreign c u rre n c ie s...............................................................

11,006
331

12,339
413

10,629
363

11,421
352

12,339
413

12,309
407

12,926
425

12,827
383

16
17
18
19
20
21
22

Financial claims
E u r o p e .....................................................................................................
Belgium-Luxembourg .......................................................................
France ...................................................................................................
Germany .............................................................................................
N etherlands.........................................................................................
Switzerland .........................................................................................
United K ingdom .................................................................................

5,218
48
178
510
103
98
4,023

6,115
32
177
407
53
73
5,053

5,638
54
183
361
62
81
4,650

6,562
33
191
393
51
85
5,522

6,115
32
177
407
53
73
5,053

5,826
19
290
298
39
89
4,778

5,835
23
307
190
37
96
4,855

5,576
14
381
168
30
41
4,546

23

Canada .....................................................................................................

4,482

4,812

5,146

4,767

4,812

4,882

4,778

4,798

24
25
26
27
28
29
30

Latin America and Caribbean .............................................................
B aham as...............................................................................................
Bermuda .............................................................................................
Brazil ...................................................................................................
British West In d ie s .............................................................................
M ex ic o .................................................................................................
Venezuela ...........................................................................................

5,665
2,959
80
151
1,288
163
150

6,190
2,680
30
163
2,001
158
133

7,433
3,637
57
141
2,407
159
151

6,682
3,284
31
133
1,838
156
139

6,190
2,680
30
163
2,001
158
133

7,512
3,448
34
128
2,591
169
132

6,807
2,962
25
120
2,393
178
139

6,671
2,757
65
116
2,283
192
128

31
32
33

Japan ...................................................................................................
Middle East oil-exporting countries3 ............................................

307
18

693
190
16

800
217
17

818
222
21

693
190
16

708
226
18

758
253
16

792
269
20

34
35

A fric a .......................................................................................................
Oil-exporting countries4 ...................................................................

181
10

253
49

227
23

277
41

253
49

265
40

256
35

260
29

36

All other5 .................................................................................................

55

44

61

69

44

43

65

68

37
38
39
40
41
42
43

Commercial claims
E u ro p e .....................................................................................................
Belgium-Luxembourg .......................................................................
France ...................................................................................................
Germany .............................................................................................
N etherlands.........................................................................................
Switzerland .........................................................................................
United K ingdom .................................................................................

3,985
144
609
399
267
198
827

4,895
203
727
584
298
269
905

3,833
170
470
421
307
232
731

4,127
179
518
448
262
224
818

4,895
203
727
584
298
269
905

4,751
208
703
515
347
349
924

4,820
255
662
504
297
429
908

4,610
227
698
561
287
332
979

By type

By area or country

922

44

Canada .....................................................................................................

1,096

843

1,106

1,164

843

862

895

926

45
46
47
48
49
50
51

Latin America and Caribbean .............................................................
B aham as...............................................................................................
Bermuda .............................................................................................
Brazil ...................................................................................................
British West In d ie s .............................................................................
M ex ic o .................................................................................................
Venezuela ...........................................................................................

2,547
109
215
629
9
506
292

2,853
21
197
647
16
698
342

2,406
98
118
503
25
584
296

2,595
16
154
568
13
648
346

2,853
21
197
647
16
698
342

2,990
19
135
656
11
833
349

3,281
19
133
697
9
921
394

3,351
53
81
709
17
973
384

52
53
54

Japan ...................................................................................................
Middle East oil-exporting countries3 ............................................

3,082
976
717

3,365
1,127
766

2,967
1,005
685

3,116
1,128
701

3,365
1,127
766

3,370
1,209
718

3,540
1,130
829

3,361
1,065
829

55
56

A fric a .......................................................................................................
Oil-exporting countries4 ...................................................................

447
136

556
133

487
139

549
140

556
133

518
114

567
115

699
135

57

A llother5 .................................................................................................

179

240

194

220

240

225

249

264

1. For a description of the changes in the International Statistics tables, see July
1979 B u l l e t in , p. 550.
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

A66
3.26

International Statistics □ March 1981
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Feb. 28, 1981

Rate on Feb. 28, 1981

Argentina
Austria ..
Belgium ..
Brazil
Canada ..
Denmark .

Per­
cent

Month
effective

169.80
6.75
12.0
40.0
17.08
11.00

Feb. 1981
Mar. 1980
July 1980
June 1980
Feb. 1981
Oct. 1980

Country

France1 ..........................
Germany, Fed. Rep. of
I ta ly ...................... .........
Japan ..............................
Netherlands ..................
Norway ..........................

1. As from February 1981, the rate at which the bank of France discounts Treasury
bills for seven to ten days.
N o t e . Rates shown are mainly those at which the central bank either
discounts or m akes advances against eligible com m ercial paper and/or

3.27

Rate on Feb. 28, 1981

Country

Country

Per­
cent

Month
effective

12.0
7.5
16.5
7.25
8.0
9.0

Feb. 1981
May 1980
Sept. 1980
Nov. 1980
Oct. 1980
Nov. 1979

Sweden ..............
Sw itzerland........
United Kingdom
V enezuela..........

Per­
cent

Month
effective

12.0
4.0
14.0
10.0

Jan. 1981
Feb. 1981
Nov. 1980
July 1980

government securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.

FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1980
Country, or type

1978

1979

1981

1980
Aug.

Sept.

Nov.

Oct.

Dec.

Jan.

Feb.

1
2
3
4
5

Eurodollars................................................
United Kingdom ......................................
Canada ......................................................
G erm any....................................................
Switzerland................................................

8.74
9.18
8.52
3.67
0.74

11.96
13.60
11.91
6.64
2.04

14.00
16.59
13.12
9.45
5.79

10.82
16.45
10.47
8.93
5.52

12.07
15.89
10.73
8.90
5.57

13.55
15.87
11.71
8.99
5.40

16.46
15.84
12.96
9.37
5.53

19.47
14.64
16.83
10.11
6.61

18.07
14.20
16.98
9.41
5.68

17.18
13.12
17.28
10.74
7.09

6
7
8
9
10

Netherlands ..............................................
France ........................................................
Italy ............................................................
Belgium......................................................
Japan ..........................................................

6.53
8.10
11.40
7.14
4.75

9.33
9.44
11.85
10.48
6.10

10.60
12.18
17.50
14.06
11.45

9.97
11.20
17.30
12.52
12.04

10.31
11.81
17.50
12.35
11.46

9.63
11.69
18.16
12.24
10.98

9.59
11.26
17.51
12.40
9.74

9.69
11.52
17.47
12.75
9.60

9.36
11.38
17.34
12.41
9.00

9.78
11.87
17.50
12.52
8.52

N o t e . Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium, time deposits of 20 million

3.28

francs and over; and Japan, Gensaki rate.

FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1980
Country/currency

1978

1979

1981

1980
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

1
2
3
4
5

Australia/dollar ........................
Austria/schilling........................
Belgium/franc............................
C anada/dollar............................
Denmark/krone ........................

114.41
6.8958
3.1809
87.729
18.156

111.77
7.4799
3.4098
85.386
19.010

114.00
7.7349
3.4247
85.530
17.766

115.77
7.8840
3.4883
86.263
18.070

117.04
7.8916
3.4844
85.861
18.068

117.43
7.6714
3.3875
85.538
17.639

116.75
7.3433
3.2457
84.286
16.962

116.86
7.1549
3.1543
83.560
16.573

118.19
7.0297
3.0962
83.974
16.181

116.26
6.6033
2.8972
83.442
15.152

6
7
8
9
10

Finland/markka ........................
F rance/franc..............................
Germany/deutsche mark ........
In dia/rupee................................
Ireland/pound ..........................

24.337
22.218
49.867
12.207
191.84

27.732
23.504
54.561
12.265
204.65

26.892
23.694
55.089
12.686
205.77

27.353
24.106
55.867
12.849
210.62

27.428
24.056
55.883
12.903
210.34

27.122
23.489
54.280
12.932
203.88

26.452
22.515
52.113
12.868
194.59

25.903
21.925
50.769
12.608
189.01

25.752
21.539
49.771
12.567
185.54

24.656
20.142
46.757
12.164
173.31

11
12
13
14
15

Italy/lira ....................................
Japan/yen ..................................
M alaysia/ringgit........................
M exico/peso..............................
N etherlands/guilder..................

16
17
18
19
20

New Zealand/dollar ................
Norway/krone ..........................
Portugal/escudo........................
South Africa/rand ....................
Spain/peseta..............................

103.64
19.079
2.2782
115.01
1.3073

102.23
19.747
2.0437
118.72
1.4896

97.337
20.261
1.9980
128.54
1.3958

97.738
20.555
2.0163
131.55
1.3810

98.309
20.676
2.0096
132.73
1.3639

98.069
20.421
1.9756
133.13
1.3423

96.770
19.938
1.9178
133.20
1.3085

95.404
19.370
1.8773
132.83
1.2653

96.137
19.087
1.8591
133.69
1.2409

93.414
18.485
1.7722
129.27
1.1686

21
22
23
24

Sri L anka/rupee........................
Sweden/krona ..........................
Switzerland/franc......................
United Kingdom/pound ..........

6.3834
22.139
56.283
191.84

6.4226
23.323
60.121
212.24

6.1947
23.647
59.697
232.58

6.2980
23.953
60.527
237.04

6.3196
24.072
61.012
240.12

5.9707
23.845
60.185
241.64

5.8139
23.240
57.942
239.41

5.7379
22.722
56.022
234.59

5.9525
22.490
54.907
240.29

5.5975
21.734
51.502
229.41

92.39

88.09

87.39

86.09

85.50

86.59

89.31

90.99

91.38

96.02

.11782
.47981
43.210
4.3896
46.284

.12035
.45834
45.720
4.3826
49.843

.11694
.44311
45.967
4.3535
50.369

.11801
.44666
46.484
4.3389
51.305

.11742
.46644
47.127
4.3443
51.398

.11441
.47777
46.902
4.3324
50.052

.11000
.46928
46.187
4.3166
48.102

.10704
.47747
45.406
4.3071
46.730

.10478
.49419
44.994
4.2792
45.810

.09807
.48615
44.196
4.2544
42.870

M em o:

25 United States/dollar1 ..............

1. Index of weighted average exchange value of U.S. dollar against cur­
rencies of other G -10 countries plus Switzerland. M arch 1973 = 100.
W eights are 1972-76 global tra d e of each of the 10 co u n tries. Series
revised as of August 1978. For description and back data, see “ Index of




the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on page
700 of the August 1978 B u l l e t in .
N ote.

Averages of certified noon buying rates in New York for cable transfers.

A67

Guide to Tabular Presentation,
Statistical Releases, and Special Tables
G

u id e t o

Ta b u l a r P

r e s e n t a t io n

Symbols and Abbreviations
c
e
p
r
*

Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is
millions)

0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs

Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable

General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
“U.S. government securities” may include guaranteed is­
sues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obli­

S t a t is t ic a l R

gations of the Treasury. “ State and local government” also
includes municipalities, special districts, and other political
subdivisions.
In some of the tables details do not add to totals because of
rounding.

eleases

List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases ....................................................................

Issue

Page

December 1980

A80

S p e c ia l Ta b l e s

Published Irregularly , with Latest Bulletin Reference
Commercial bank assets and liabilities, call dates, December 31, 1978, to March 31, 1980
Commercial bank assets and liabilities, June 30, 1980...............................................................
Commercial bank assets and liabilities, September 30, 1980.....................................................
Assets and liabilities of U.S. branches and
agencies of foreign banks, June 30, 1980 ..................................................................................
Special tables begin on following page.




October 1980
December 1980
February 1981

A71
A68
A68

March 1981

A68

A68
4.30

Special Tables □ March 1981
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1980*
Millions of dollars
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Other states2

Cali­
fornia
Total3

Illinois
Branches
Branches

Agencies

1 Total assets4 .........................................................................

122,529

74,767

47,763

64,774

20,671

25,782

5,941

4,028

1,333

2 Cash and due from depository institutions....................
3
Currency and coin (U.S. and foreign) ......................
4
Balances with Federal Reserve Banks ......................
5 Balances with other central banks ..............................
6 Demand balances with commercial banks in United
States .........................................................................
7 All other balances with depository institutions in
United States and with banks in foreign
countries...................................................................
8
Time and savings, balances with commercial banks
in United S ta te s ...................................................
9
Balances with other depository institutions in
United S ta te s .......................................................
10
Balances with banks in foreign countries ..............
11
Foreign branches of U.S. b a n k s ..........................
12
Other banks in foreign countries ........................
13 Cash items in process of collection ............................

17,340
16
22
1

14,342
13
17
1

2,999
3
5
0

13,575
10
14
1

2,756
1
5
0

219
2
0
0

671
1
3
0

96
2
0
0

24
0
0
0

8,611

6,604

2,008

6,418

1,916

87

141

44

5

7,894

7,038

855

6,465

723

113

524

49

19

3,700

3,401

300

3,246

243

45

109

46

11

431
3,763
813
2,949
796

431
3,207
624
2,583
669

0
556
189
366
128

430
2,789
544
2,245
666

0
480
171
308
111

0
67
17
50
17

0
415
80
335
1

0
3
0
3
1

0
9
1
8
0

14 Total securities, loans, and lease financing receivables .

75,602

49,778

25,824

42,428

12,438

112,172

4,873

2,465

1,226

15 Total securities, book value .............................................
16 U.S. Treasury .................................................................
17
Obligations of other U.S. government agencies and
corporations.............................................................
18 Obligations of states and political subdivisions in
United S ta te s ...........................................................
19 Other bonds, notes, debentures and corporate stock

2,929
1,918

1,667
1,018

1,263
900

1,441
895

1,136
840

127
60

123
25

102
98

0
0

299

80

220

77

201

20

0

1

0

159
553

124
445

36
108

93
376

1
95

35
13

28
69

3
0

0
0

5,640

3,013

2,626

2,876

2,279

350

110

22

4

5,368
271

2,795
219

2,574
53

2,710
166

2,237
42

339
10

57
53

22
0

4
0

One-day maturity or continuing contract ..................
Securities purchased under agreements to resell ..
O th e r.............................................................................
Other securities purchased under agreements to
resell .........................................................................

5,536
132
5,404

2,975
60
2,915

2,561
72
2,489

2,854
19
2,834

2,218
52
2,166

346
20
326

94
41
53

22
0
22

4
0
4

104

38

66

22

62

4

16

0

0

27 Total loans, gross ...............................................................
28 L ess: Unearned income on lo a n s ....................................
29 E quals: Loans, net ...........................................................

72,760
90
72,670

48,161
52
48,109

24,599
38
24,561

41,035
50
40,985

11,315
13
11,302

12,070
25
12,045

4,751
1
4,750

2,364
1
2,363

1,226
0
1,226

30 Real estate lo a n s .................................................................
31 Loans to financial institutions...........................................
32
Commercial banks in United States ..........................
33
U.S. branches and agencies of other foreign banks
34
Other commercial banks .........................................
35
Banks in foreign co u n tries.............................................
36
Foreign branches of U.S. b a n k s ..............................
37
O th e r.............................................................................
38
Other financial institutions ..........................................

1,704
23,933
11,651
10,714
937
11,285
1,456
9,829
997

243
18,764
9,278
8,560
718
8,791
1,086
7,705
695

1,460
5,169
2,373
2,155
219
2,494
371
2,123
302

120
17,273
8,470
7,809
661
8,274
1,006
7,267
529

651
2,794
1,074
903
172
1,479
277
1,202
241

693
2,323
1,287
1,252
35
980
94
56

19
1,430
755
699
56
515
77
438
160

95
61
53
52
1
2
2
0
6

126
51
12
0
12
35
0
35
5

39 Loans for purchasing or carrying securities ..................
40 Commercial and industrial loans ....................................
41
U.S. addressees (domicile) ..........................................
42
Non-U.S. addressees (dom icile)..................................
43 Loans to individuals for household, family, and other
personal expenditures.................................................
44 All other lo a n s .....................................................................
45
Loans to foreign governments and official
institutions ...............................................................
46
O th e r.................................................................................

735
38,304
23,863
14,440

362
22,901
14,102
8,799

372
15,403
9,761
5,642

337
17,679
10,053
7,626

354
6,297
3,391
2,906

19
8,1.14
5,445
2,669

20
3,076
2,738
339

5
2,143
1,310
834

0
994
927
67

101
7,985

67
5,824

34
2,161

51
5,575

17
1,202

17

m

4
202

11
47

0
55

6,665
1,320

4,725
1,099

1,940
221

4,516
1,058

1,021
181

864
40

189
13

19
28

55
0

47 Lease financing receivables...............................................
48 All other assets ...................................................................
49
Customers’ liability on acceptances outstanding ----50
U.S. addressees (domicile) .......................................
51
Non-U.S. addressees (dom icile)..............................
52 Net due from related banking institutions5 ..............
53
O th e r.................................................................................

3
23,947
7,617
4,000
3,616
12,777
3,553

2
7,634
3,711
2,092
1,618
1,527
2,396

1
16,313
3,906
1,908
1,998
11,250
1,157

2
5,895
3,618
2,044
1,573
160
2,117

0
3,197
2,728
899
1,829
0
469

1
13,041
1,151
988
163
11,229
661

0
288
61
37
24
0
227

0
1,446
32
11
21
1,366
48

0
80
27
21
6
21
31

20 Federal funds sold and securities purchased under
agreements to resell ...................................................
By holder

21
22

Commercial banks in United States ..........................
O th e rs ...............................................................................
By type

23
24
25
26

Total loans, gross, by category




m

U. S. Branches and Agencies
4.30

A69

Continued
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Other states2

Cali­
fornia
Total3

Illinois
Branches
Branches

Agencies

54 Total liabilities4 ..................................................................

122,529

74,767

47,763

64,774

20,671

25,782

5,941

4,028

1,333

55 Total deposits and credit balances ..................................
Individuals, partnerships, and corporations ..............
56
U.S. addressees (domicile) ......................................
57
Non-U.S. addressees (dom icile)..............................
58
59 U.S. government, states, and political subdivisions
in United S ta te s ......................................................
60
All o th e r ..........................................................................
Foreign governments and official institutions . . . .
61
Commercial banks in United States ......................
62
U.S. branches and agencies of other foreign
63
banks ................................................................
Other commercial banks in United States ........
64
Banks in foreign co u n tries........................................
65
66
Foreign branches of U.S. b a n k s ..........................
Other banks in foreign countries ........................
67
Certified and officers’ checks, travelers checks,
68
and letters of credit sold for c a s h ....................

34,069
16,918
14,252
2,666

29,632
16,171
14.049
2,122

4.437
747
203
544

26,675
13,519
11,511
2.008

3,634
305
130
175

760
413
66
348

479
287
215
71

2,472
2,360
2,317
43

48
34
12
21

103
17,048
2,927
5,743

103
13,359
2,672
4.638

0
3,690
255
1,105

29
13,128
2,550
4,631

0
3,329
91
1,095

0
346
165
1

3
190
112
3

71
41
10
4

0
14
0
9

841
4,902
2,707
48
2,660

832
3,806
2.318
39
2,279

9
1,096
389
8
381

831
3,799
2,266
37
2,229

8
1,087
267
0
267

0
1
119
8
111

0
3
40
0
40

0
4
12
2
10

1
8
3
0
3

5,671

3.731

1,940

3,681

1,877

61

35

15

2

69 Demand deposits................................................................
Individuals, partnerships, and corporations ..............
70
71
U.S. addressees (domicile) ......................................
Non-U.S. addressees (dom icile)..............................
72
U.S. government, states, and political subdivisions
73
in United S ta te s ......................................................
74
All o th e r ..........................................................................
Foreign governments and official institutions . . . .
75
Commercial banks in United States ......................
76
U.S. branches and agencies of other foreign
77
banks ................................................................
Other commercial banks in United States ........
78
Banks
in foreign co u n tries........................................
79
80
Certified and officers’ checks, travelers checks,
and letters of credit sold for c a s h ....................

140915
1,526
981
545

8.910
1.479
968
511

2,005
47
12
34

8,655
1,280
798
482

1,877
0
0
0

116
38
7
31

133
93
72
21

120
104
96
8

15
11
7
4

14
9,375
723
1,953

14
7.417
714
1,951

0
1,958
9
2

13
7,361
712
1,949

0
1,877
0
0

0
78
9
1

0
40
1
1

0
15
0
1

0
4
0
1

165
1,788
1,028

164
1.787
1,021

1
1
7

164
1,785
1,019

0
0
0

0
1
7

0
1
2

0
0
0

1
0
1

5,671

3,731

1,940

3,681

1.877

61

35

15

2

81 Time deposits......................................................................
Individual, partnerships, and corporations................
82
U.S. addressees (domicile) ......................................
83
84
Non-U.S. addressees (dom icile)..............................
U.S. government, states, and political subdivisions
85
in United S ta te s ......................................................
86 A llo th e r ..........................................................................
Foreign governments and official institutions . . . .
87
Commercial banks in United States ......................
88
U.S. branches and agencies of other foreign
89
banks ................................................................
Other commercial banks in United States ........
90
Banks in foreign co u n tries........................................
91

20,952
14,654
12,876
1,778

20.372
14.342
12.871
1.471

581
312
5
307

17,726
11,944
10,553
1,391

0
0
0
0

556
296
6
290

324
171
124
47

2,322
2,226
2,193
33

25
17
0
17

89
6,209
2,109
2,695

89
5.941
1.958
2.686

0
268
151
8

16
5,766
1,838
2,681

0
0
0
0

0
260
151
0

3
150
110
2

71
25
10
3

0
8
0
8

668
2,027
1,406

668
2,019
1.297

0
8
109

668
2,014
1,247

0
0
0

0
0
108

0
2
38

0
3
12

0
8
0

92 Savings deposits..................................................................
Individuals, partnerships, and corporations ..............
93
94
U.S. addressees (domicile) ......................................
Non-U.S. addressees (dom icile)..............................
95
U.S. government, states, and political subdivisions
96
in United S ta te s ......................................................
A llo th e r...........................................................................
97

377
376
209
167

351
350
209
141

26
26
0
26

295
295
161
134

0
0
0
0

28
28
1
26

23
23
19
4

31
31
29
2

0
0
0
0

0
1

0
1

0
0

0
1

0
0

0
0

0
0

0
0

0
0

98 Credit balances ...................................................................
Individuals, partnerships, and corporations ..............
99
U.S. addressees (domicile) ......................................
100
Non-U.S. addressees (dom icile)..............................
101
102 U.S. government, states, and political subdivisions
in United S ta te s ......................................................
A llo th e r ..........................................................................
103
Foreign governments and official institutions . . . .
104
Commercial banks in United States ......................
105
U.S. branches and agencies of other foreign
106
banks ................................................................
Other commercial banks in United States ........
107
Banks in foreign co u n tries........................................
108

1,826
362
185
177

0
0
0
0

1.825
362
185
177

0
0
0
0

1,757
305
130
175

60
51
51
1

0
0
0
0

0
0
0
0

8
6
5
1

0
1,463
95
1,095

0
0
0
0

0
1,463
95
1.095

0
0
0
0

0
1,452
91
1,095

0
9
4
0

0
0
0
0

0
0
0
0

0
2
0
0

8
1,087
273

0
0
0

8
1,087
273

0
0
0

8
1,087
267

0
0
4

0
0
0

0
0
0

0
0
2

For notes see page A71.




A70
4.30

Special Tables □ March 1981
Continued
New York

All states2
Item
Total

Other states2

Cali­
fornia
Total3

Illinois
Branches

Branches

Agencies

Branches

Agencies

11,547

6,448

5,099

5,635

2,529

2,416

10,536
1,012

5,937
511

4,598
501

5,144
491

2,172
357

One-day maturity or continuing contract ..................
Securities sold under agreements to repurchase ..
O th e r.............................................................................
Other securities sold under agreements to
repurchase ...............................................................

11,346
500
10,845

6,254
431
5,823

5,092
69
5,023

5,451
425
5,026

2,529
3
2,526

201

194

7

184

0

7

9

0

1

116 Other liabilities for borrowed money ............................
117 Owed to banks ...............................................................
118
U.S. addressees (domicile) ......................................
119
Non-U.S. addressees (dom icile)..............................
120 Owed to others ...............................................................
121
U.S. addressees (domicile) ......................................
122
Non-U.S. addressees (dom icile)..............................

33,383
30,485
24,920
5,565
2,898
2,142
756

11,673
10,370
6,352
4,018
1,304
960
344

21,710
20,115
18,568
1,547
1,595
1,182
413

9,691
8,526
5,042
3,484
1,164
843
322

3,756
3,460
2,926
534
296
80
216

17,916
16,618
15,614
1,004
1,299
1,102
196

1,545
1,497
966
531
49
30
19

437
346
344
2
91
87
3

37
37
28
9
0
0
0

123 All other liabilities .............................................................
124 Acceptances executed and outstan d in g ......................
125 Net due to related banking institutions5 ....................
126 O th e r.................................................................................

43,529
8,103
32,379
3,047

27,013
3,809
20,798
2,406

16,516
4,294
11,581
642

22,772
3,702
16,911
2,159

10,751
2,504
8.017
230

4,690
1,763
2,533
394

3,253
73
2,976
203

969
34
893
43

1,094
27
1,049
18

109 Federal funds purchased and sold under agreement to
repurchase ...................................................................

Branches

Agencies

664

149

154

2,403
13

644
19

149
0

23
131

2,410
66
2,344

654
7,
647

149
0
149

153
0
153

By holder

110
Ill

Commercial banks in United States .......... ................
O th e rs ...............................................................................
By type

112
113
114
115

M em o

127 Time deposits of $100,000 or more ................................
128 Certificates of deposit (CDs) in denominations of
$100,000 or more ...................................................
129 O th e r.................................................................................
130 Savings deposits authorized for automatic transfer and
n o w acco u n ts...............................................................
131 Money market time certificates of $10,000 and less
than $100,000 with original maturities of 26 weeks
132 Time certificates of deposit in denominations of
$100,000 or more with remaining maturity of
more than 12 months .................................................

19,680

19,259

421

16,810

0

408

176

2,272

14

16,526
3,154

16,210
3,049

316
105

13,818
2,992

0
0

314
93

154
22

2,237
35

3
11

133
134
135
136
137
138
139
140

48

Acceptances refinanced with a U.S.-chartered bank ..
Statutory or regulatory asset pledge requirement ........
Statutory or regulatory asset maintenance requirement
Commercial letters of credit ............................................
Standby letters of credit, total ........................................
U.S. addressees (domicile) ..........................................
Non-U.S. addressees (dom icile)..................................
Standby letters of credit conveyed to others through
participations (included in total standby letters of
c r e d it)...........................................................................

56

55

1

52

0

1

0

2

0

330

326

4

294

0

4

13

19

1

1,395

1,311

84

1,230

0

82

14

67

2

1,560
44,791
4,765
7,976
3,361
2,447
914

734
34,720
4,536
4,543
2,275
1,662
613

826
10,071
229
3,433
1,086
785
301

616
30,167
2,953
4,087
1,953
1,477
476

321
10,027
173
1,060
489
314
175

506
30
18
2,331
472
412
60

10
4,501
157
236
215
111
104

108
51
1,426
220
106
74
33

0
15
38
42
126
59
67

20

29

18

6

20

0

2

3

141 Holdings of commercial paper included in total gross
loans .............................................................................
142 Holdings of acceptances included in total commercial
and industrial lo a n s .....................................................
143 Immediately available funds with a maturity greater
than one day (included in other liabilities for bor­
rowed money) .............................................................

15,713

5,092

10,621

3,956

144 Gross due from related banking institutions5 ..............
145 U.S. addressees (domicile) ..........................................
146
Branches and agencies in United States ................
147
In the same state as reporter ..............................
148
In other states .........................................................
149
U.S. banking subsidiaries6 ......................................
150 Non-U.S. addressees (dom icile)..................................
151
Head office and non-U.S. branches and agencies .
152
Non-U.S. banking companies and offic es..............

43,781
14,668
14,411
584
13,828
257
29,113
27,117
1,996

17,674
3,398
3,265
84
3,181
132
14,276
13,488
789

26,107
11,271
11,146
500
10,646
125
14,837
13,629
1,208

15,338
2,308
2,176
67
2,109
132
13,030
12,263
767

153 Gross due to related banking institutions5 ....................
154 U.S. addressees (domicile) ...........................................
155
Branches and agencies in United States ................
156
In the same state as reporter ..............................
157
In other states .........................................................
158
U.S. banking subsidiaries6 ......................................
159 Non-U.S. addressees (dom icile)..................................
160
Head office and non-U.S. branches and agencies .
161
Non-U.S. banking companies and o ffic es..............

63,383
15,257
15,043
566
14,477
214
48,126
46,186
1,940

36,945
7,836
7,731
81
7,650
104
29,110
27,381
1,729

26,438
7,421
7,312
485
6,828
109
19,017
18,805
212

32,088
5,192
5,111
55
5,056
81
26,896
25,243
1,653

19,749
4,592
4,507
7
4,500
84
15,158
15,077
80




857

710

147

694

97

50

15

0

0

3,573

1,832

1,741

1,749

617

1,119

48

35

4

2,139

8,471

901

235

11

11,732
1,618
1„587
0
1,587
31
10,114
8,909
1,205

14,278
9,636
9,543
492
9,051
93
4,642
4,639
2

473
102
102
0
102
0
371
354
17

1,863
987
987
17
970
0
875
872
4

98
17
16
8
8
1
81
80
1

5,581
2,346
2,326
477
1,849
19
3,236
3,106
129

3,450
1,758
1,737
0
1,737
21
1,692
1,616
76

1,389
885
883
27
856
2
504
504
0

1,125
484
478
0
478
5
641
639
2

U.S. Branches and Agencies
4.30

A ll

Continued
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Cali­
fornia
TotaP

Other states3
Illinois
Branches
Branches

Agencies

Average fo r 30 calendar days (or calendar month) ending
with report date

162 Total a ssets...........................................................................
163 Cash and due from depository institutions....................
164 Federal funds sold ana securities purchased under
agreements to resell ...................................................
165 Total lo a n s ...........................................................................
166 Loans to banks in foreign countries ..............................
167 Total deposits and credit b a la n c e s ..................................
168 Time CDs in denominations of $100,000 or more . . . .
169 Federal funds purchased and securities sold under
agreements to repurchase ........................................
170 Other liabilities for borrowed money ............................

126,918
14,198

76,433
11,889

50,485
2,309

66,417
11,197

23,436
2,080

25,805
207

5,813
615

4,183
77

1,264
22

7,206
71,167
10,942
34,639
15,424

5,069
46,958
8,361
31,258
15,036

2,137
24,209
2,581
3,380
389

4,900
40,008
7,846
28,277
12,588

1,846
11,002
1,498
2,592
76

288
12,062
1,049
746
311

152
4,596
513
418
150

14
2,343
2
2,558
2,297

5
1,156
34
48
2

8,589
33,663

4,567
12,899

4,022
20,764

3,947
10,914

1,518
2,794

2,375
17,932

523
1,527

97
457

128
38

171 Number of reports filed7 ...................................................

306

135

171

79

63

86

31

24

23

1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
“Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks.” This form was first used for reporting data as of June 30, 1980. From
November 1972 through May 1980, U.S. branches and agencies of foreign banks
had filed a monthly FR 886a report. Aggregate data from that report were available
through the Federal Reserve statistical release G .ll, last issued on July 10, 1980.
Data in this table and in the G .ll tables are not strictly comparable because of
differences in reporting panels and in definitions of balance sheet items.
2. Includes the District of Columbia.
3. Agencies account for virtually all of the assets and liabilities reported in
California.
4. Total assets and total liabilities include net balances, if any , due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the form er m onthly branch and agency report, avail­




able through the G .ll statistical release, gross balances were included in total assets
and total liabilities. Therefore, total asset and total liability figures in this table are
not comparable to those in the G .ll tables.
5. “Related banking institutions” includes the foreign head office and other U.S.
and foreign branches and agencies of the bank, the bank’s parent holding company,
and majority-owned banking subsidiaries of the bank and of its parent holding
company (including subsidiaries owned both directly and indirectly). Gross amounts
due from and due to related banking institutions are shown as memo items.
6. “U.S. banking subsidiaries” refers to U.S. banking subsidiaries majorityowned by the foreign bank and by related foreign banks and includes U.S. offices
of U.S.-chartered commercial banks, of Edge Act and Agreement corporations,
and of New York State (Article XII) investment companies.
7. In some cases two or more offices of a foreign bank within the same met­
ropolitan area file a consolidated report.

A72

Federal Reserve Board of Governors
Paul

A.

V olcker,

Chairman
Vice Chairman

H e n r y C . W a l l ic h

F r e d e r ic k H . S c h u l t z ,

J. C h a r l e s P a r t e e

O

O f f ic e o f S t a f f D ir e c t o r f o r
M o n e t a r y a n d F in a n c ia l P o l ic

f f ic e o f

Board M

em bers

y

J o s e p h R. C o y n e , A ssistan t to the Board
D o n a l d J. W i n n , A ssistan t to the Board
A n t h o n y F . C o l e , Special Assistant to the Board
W il l ia m R. M a l o n i , Special Assistant to the B oard
F r a n k O ’B r ie n , J r ., Special A ssistant to the Board
J o s e p h S. S im s , Special A ssistant to the B oard
J a m e s L . S t u l l , M anager, Operations R eview Program

S t e p h e n H. A x il r o d , Staff D irector
E d w a r d C . E t t i n , Deputy Staff D irector
M ur r a y A l t m a n n , A ssistant to the Board
P e t e r M . K e i r , A ssistan t to the Board
S t a n l e y J. S ig e l , A ssistant to the Board
N o r m a n d R. V . B e r n a r d . Special A ssistant to the Board

L egal D

D

iv is io n

N e a l L . P e t e r s e n , General Counsel
R o b e r t E . M a n n io n , D eputy General Counsel
J. V ir g il M a t t in g l y , J r ., A ssociate General Counsel
G il b e r t T . S c h w a r t z , A ssociate General Counsel
M a r y e l l e n A. B r o w n , A ssistant to the General Counsel
C h a r l e s R. M c N e i l l , A ssistant to the General Counsel
M ic h a e l E . B l e i e r , A ssistant General Counsel
C o r n e l iu s K . H u r l e y , J r ., A ssistant General Counsel

O f f ic e

o f the

Secretary

B a r b a r a R. L o w r e y , A ssistant Secretary
J a m e s M c A f e e , A ssistant Secretary
*J e f f e r s o n A . W a l k e r , A ssistan t Secretary

D

iv is io n o f

and

C

C o nsu m er
A f f a ir s

iv is io n o f

R

esearch a n d

S

t a t is t ic s

J a m e s L . K i c h l i n e , D irector
J o s e p h S. Z e i s e l , D eputy D irector
M ic h a e l J. P r e l l , A ssociate D irector
R o b e r t A . E is e n b e is , Senior D eputy A ssociate Director
J a r e d J. E n z l e r , Senior Deputy A ssociate D irector
E l e a n o r J. S t o c k w e l l , Senior D eputy A ssociate Director
D o n a l d L . K o h n , D eputy Associate D irector
J. C o r t l a n d G . P e r e t , D eputy A ssociate D irector
H e l m u t F . W e n d e l , D eputy A ssociate D irector
M a r t h a B e t h e a , A ssistant D irector
J o e M . C l e a v e r , A ssistant D irector
R o b e r t M . F i s h e r , A ssistant D irector
D a v id E . L i n d s e y , A ssistant D irector
L a w r e n c e S l i f m a n , A ssistant D irector
F r e d e r ic k M . S t r u b l e , A ssistant D irector
S t e p h e n P. T a y l o r , A ssistant D irector
L ev o n H . G a r a b e d ia n , Assistant Director (Administration)

o m m u n it y

D
J a n e t O . H a r t , D irector
G r if f it h L . G a r w o o d , D eputy D irector
J e r a u l d C . K l u c k m a n , A ssociate D irector
G l e n n E . L o n e y , A ssistant D irector
D e l o r e s S. S m i t h , A ssistant D irector

D iv is io n o f B a n k in g
S u p e r v is io n a n d R e g u l a t io n
J o h n E . R y a n , D irector
F r e d e r ic k R . D a h l , A ssociate D irector
W il l ia m T a y l o r , A ssociate D irector
W il l ia m W . W i l e s , A ssociate D irector
J a c k M . E g e r t s o n , A ssistant D irector
R o b e r t A. J a c o b s e n , A ssistant D irector
D o n E . K l i n e , A ssistant Director
R o b e r t S. P l o t k in , A ssistant D irector
T h o m a s A. S id m a n , A ssistant D irector
S a m u e l H . T a l l e y , A ssistant D irector
L a u r a M . H o m e r , Securities Credit Officer




iv is io n o f

In t e r n a t io n a l F in a n c e

E d w in M . T r u m a n , D irector
R o b e r t F . G e m m i l l , A ssociate D irector
G e o r g e B. H e n r y , A ssociate D irector
C h a r l e s J. S ie g m a n , A ssociate D irector
S a m u e l P i z e r , S ta ff A dviser
D a l e W . H e n d e r s o n , A ssistant D irector
L arry J. P r o m is e l , A ssistant D irector
R a l p h W . S m i t h , Jr., A ssistant D irector

A73

and Official Staff
N ancy H . T eeters
E m m e t t J. R ic e

O f f ic e o f
S t a f f D ir e c t o r

for

L yle E. G ram ley

M

anagem ent

J o h n M . D e n k l e r , S ta ff D irector
E d w a r d T . M u l r e n i n , A ssistant S ta ff D irector
J o s e p h W . D a n ie l s , S r ., D irector o f Equal Em ploym ent O p­

O f f ic e o f S t a f f D ir e c t o r f o r
F e d e r a l R e s e r v e B a n k A c t iv it ie s
T h e o d o r e E . A l l is o n , S ta ff D irector
H a r r y A . G u i n t e r , A ssistant D irector fo r Contingency

Planning

portunity
D
D

iv is io n o f

D

ata

P r o c e s s in g

C h a r l e s L. H a m p t o n , Director
B r u c e M . B e a r d s l e y , A ssociate D irector
U y l e ss D. B l a c k , A ssistan t D irector
G l e n n L. C u m m in s , A ssistant D irector
R o b e r t J. Z e m e l , A ssistan t D irector

D

iv is io n o f

P

erson n el

D a v id L . S h a n n o n , D irector
J o h n R . W e i s , A ssistan t D irector
C h a r l e s W . W o o d , A ssistant D irector

O f f ic e

o f th e

C

ontroller

J o h n K a k a l e c , Controller
G e o r g e E. L iv in g s t o n , A ssistant Controller

D

iv is io n o f

S

upport

S e r v ic e s

D o n a l d E . A n d e r s o n , D irector
W a l t e r W . K r e im a n n , A ssociate D irector
R o b e r t E. F r a z ie r , A ssistant D irector

*On loan from the Federal Reserve Bank of Richmond.



iv is io n o f

Ban

k

Federal R

eserve

O p e r a t io n s

C l y d e H . F a r n s w o r t h , J r ., D irector
W a l t e r A l t h a u s e n , A ssistant D irector
C h a r l e s W . B e n n e t t , Assistant D irector
L o r in S. M e e d e r , A ssistan t D irector
P. D. R i n g , A ssistan t D irector
D a v id L . R o b in s o n , A ssistant D irector
R a y m o n d L . T e e d , A ssistant D irector

A74

Federal Reserve Bulletin □ March 1981

FOMC and Advisory Councils
Federal O pen M

arket

C

o m m it t e e

P a u l A . V o l c k e r , Chairman
E d w ard G. B ochne
R o b e r t H. B o y k in
E . G e r a l d C o r r ig a n

A n t h o n y M . S o l o m o n , Vice Chairman
L y le E . G ram ley
R o b e r t P. M a y o
J. C h a r l e s P a r t e e
E m m e t t J. R ic e

M u r r a y A l t m a n n , Secretary
N o r m a n d R. V. B e r n a r d , A ssistant Secretary
N e a l L. P e t e r s e n , General Counsel
J a m e s H . O l t m a n , D eputy General Counsel
R o b e r t E. M a n n i o n , A ssistant General Counsel
S t e p h e n H . A x il r o d , Econom ist
A l a n R . H o l m e s , A dviser fo r M arket O perations
A n a t o l B a l b a c h , A ssociate Econom ist
J o h n D a v is , A ssociate Econom ist

F r e d e r ic k H . S c h u l t z
N ancy H T eeters
H e n r y C . W a l l ic h

R ic h a r d G . D a v is , A ssociate Econom ist
T h o m a s D a v is , A ssociate E conom ist
R o b e r t E is e n m e n g e r , A ssociate Econom ist
E d w a r d C. E t t i n , A ssociate Econom ist
G e o r g e B. H e n r y , A ssociate Econom ist
P e t e r M. K e i r , A ssociate E conom ist
J a m e s L . K i c h l i n e , A ssociate Econom ist
E d w in M. T r u m a n , A ssociate Econom ist
J o s e p h S. Z e i s e l , A ssociate Econom ist

P e t e r D. S t e r n l i g h t , M anager fo r D om estic Operations, System Open M arket Account
S c o t t E. P a r d e e , M anager fo r Foreign O perations, System Open M arket Account

Federal A

d v is o r y

C o u n c il
M e r l e E. G i l l i a n d , Fourth District, President
C h a u n c e y E. S c h m id t , Twelfth District, Vice President
R o b e r t M . S u r d a m , Seventh District
R o n a l d T e r r y , Eighth District
C l a r e n c e G . F r a m e , Ninth District
G o r d o n E. W e l l s , Tenth District
T . C . F r o s t , J r ., Eleventh District

W il l ia m S. E d g e r l y , First District
D o n a l d C . P l a t t e n , Second District
J o h n W . W a l t h e r , Third District
J. O w e n C o l e , Fifth District
R o b e r t S t r ic k l a n d , Sixth District

H e r b e r t V . P r o c h n o w , Secretary
W il l ia m J. K o r s v ik , A ssociate Secretary

C o nsu m er A

d v is o r y

C o u n c il
R a l p h J. R o h n e r , Washington D.C., Chairman
C h a r l o t t e H. S c o t t , Charlottesville, Virginia, Vice Chairman

A r t h u r F . B o u t o n , Little Rock, Arkansas
J u l ia H. B o y d , Alexandria, Virginia
E l l e n B r o a d m a n , Washington, D.C.
J a m e s L . B r o w n , Milwaukee, Wisconsin
M a r k E . B u d n i t z , Atlanta, Georgia
J o s e p h N. C u g i n i , Westerly, Rhode Island
R ic h a r d S. D ’A g o s t i n o , Philadelphia, Pennsylvania
S u s a n P ie r s o n D e W i t t , Springfield, Illinois
J o a n n e S. F a u l k n e r , New Haven, Connecticut
L u t h e r G a t l in g , New York, New York
V e r n a r d W . H e n l e y , Richmond, Virginia
J u a n J e s u s H in o j o s a , McAllen, Texas
S h ir l e y T. H o s o i , Los Angeles, California
G e o r g e S. I r v in , Denver, Colorado




F . T h o m a s J u s t e r , A n n A rb o r, M ichigan
R ic h a r d F . K e r r , C in c in n a ti, O hio
H a r v e y M . K u h n l e y , M in n e a p o lis, M in n e so ta
T h e R e v . R o b e r t J. M c E w e n , S .J ., C h e stn u t H ill,
M a s s a c h u s e tts
S t a n L. M u l a r z , C h icag o , Illin o is
W il l ia m J. O ’C o n n o r , B uffalo, New York
M a r g a r e t R e il l y -P e t r o n e , U p p e r M o n tc la ir, New J e rs e y
R e n e R e i x a c h , R o c h e s te r, New York
F l o r e n c e M . R i c e , New York, New York
H e n r y B . S c h e c h t e r , W a sh in g to n , D.C.
P e t e r D. S c h e l l ie , Washington, D.C.
N a n c y Z . S p i l l m a n , Los Angeles, C a lifo rn ia
R ic h a r d A. V a n W i n k l e , S a lt Lake C ity , U ta h
M a r y W . W a l k e r , M o n ro e , Georgia

A75

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, ovfacility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*.................... 02106

Robert P. Henderson
Thomas I. Atkins

Frank E. Morris
James A. McIntosh

NEW YORK* ............ ,,10045

Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III

Anthony M. Solomon
Thomas M. Timlen

Buffalo....................... ..14240

JohnT. Keane

PHILADELPHIA

19105

John W. Eckman
Jean A. Crockett

Edward G. Boehne
Richard L. Smoot

CLEVELAND*

44101

J. L. Jackson
William H. Knoell
Martin B. Friedman
Milton G. Hulme, Jr.

Willis J. Winn
Walter H. MacDonald

Maceo A. Sloan
Steven Muller
Joseph H. McLain
Naomi G. Albanese

Robert P. Black
Jimmie R. Monhollon

Cincinnati.................. 45201
Pittsburgh.................. ..15230
RICHMOND* ...............23261
Baltimore.................... 21203
Charlotte .................... 28230

Robert E. Showaiter
Harold J. Swart

Robert D. McTeer, Jr.
Stuart P. Fishbume

Culpeper Com munications
and R ecords C enter 22701

ATLANTA .................. ,.30301
Birmingham ............ 35202
Jacksonville ............ ,32231
Miami ....................... ..33152
Nashville .................. 37203
New Orleans............ ,,70161
CHICAGO*.................. 60690
Detroit....................... ,,48231
ST. LOUIS .................. 63166
Little R o c k ............... 72203
Louisville.................. 40232
Memphis .................. 38101
MINNEAPOLIS......... ,,55480
Helena........................ 59601
KANSAS CITY

64198

Denver........................ 80217
Oklahoma City...........,.73125
Omaha........................ ,68102
DALLAS ..................... ,75222
El Paso........................ ,79999
Houston..................... ,77001
San Antonio ............. ,78295
SAN FRANCISCO ..... .94120
Los Angeles ............. 90051
Portland..................... .97208
Salt Lake C ity ........... ,.84125
Seattle........................ ,98124

Vice President
in charge of branch

Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Louis J. Willie
Jerome P. Keuper
Roy W. Vandegrift, Jr.
John C. Bolinger, Jr.
Horatio C. Thompson

William F. Ford
Robert P. Forrestal

John Sagan
Stanton R. Cook
Vacancy

Robert P. Mayo
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Sister Eileen M. Egan
Patricia W. Shaw

Lawrence K. Roos
Donald W. Moriarty, Jr.

Stephen F. Keating
William G. Phillips
Norris E. Hanford

E. Gerald Corrigan
Thomas E. Gainor

Paul H. Henson
Doris M. Drury
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder

Roger Guffey
Henry R. Czerwinski

Gerald D. Hines
John V. James
Josefina A. Salas-Porras
Jerome L. Howard
Lawrence L. Crum

Robert H. Boykin
William H. Wallace

Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
John C. Hampton
Wendell J. Ashton
George H. Weyerhaeuser

John J. Balles
John B. Williams

Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
James D. Hawkins

William C. Conrad

John F. Breen
Donald L. Henry
Robert E. Matthews

Betty J. Lindstrom

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Joel L. Koonce, Jr.
J. Z. Rowe
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A76

Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
ROOM MP-510, BOARD OF GOVERNORS OF THE FED­
ERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551.
When a charge is indicated, remittance should accompany

request and be made payable to the order o f the Board o f
Governors o f the Federal Reserve System. Remittance from
foreign residents should be drawn on a U.S. bank. Stamps
and coupons are not accepted.

T h e F e d e r a l R e se r v e S y ste m — P u rp o se s a n d F u n c ­
t i o n s . 1974. 125 pp.
A n n u a l Report.
F e d e r a l R e s e r v e B u l l e t i n . Monthly. $20.00 per year or

S u r v e y o f C h a n g e s in F a m ily F in a n c e s .

$2.00 each in the United States, its possessions, Canada,
and Mexico; 10 or more of same issue to one address,
$18.00 per year or $1.75 each. Elsewhere, $24.00 per
year or $2.50 each.
B a n k i n g a n d M o n e t a r y S t a t i s t i c s . 1914-1941. (Reprint
of Part I only) 1976. 682 pp. $5.00.
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 , 1941-1970. 1976.
1,168 pp. $15.00.
A n n u a l S t a t i s t i c a l D ig e s t
1971-75. 1976. 339 p p . $4.00 p e r c o p y fo r e a c h p aid s u b ­
sc r ip tio n to Federal Reserve Bulletin; a ll o th er s $5.00
each .

1972-76. 1977. 377 pp. $10.00 per copy.
1973-77. 1978. 361 pp. $12.00 per copy.
1974-78. 1980. 305 pp. $10.00 per copy.
F e d e r a l R e s e r v e C h a r t B o o k . Issued four times a year in
February, May, August, and November. Subscription
includes one issue of Historical Chart Book. $7.00 per
year or $2.00 each in the United States, its possessions,
Canada, and Mexico. Elsewhere, $10.00 per year or
$3.00 each.
H i s t o r i c a l C h a r t B o o k . Issued annually in Sept. Subscrip­
tion to Federal Reserve Chart Book includes one issue.
$1.25 each in the United States, its possessions, Canada,
and Mexico; 10 or more to one address, $1.00 each. Else­
where, $1.50 each.
C a p i t a l M a r k e t D e v e l o p m e n t s . Weekly. $15.00 per year
or $.40 each in the United States, its possessions, Cana­
da, and Mexico; 10 or more of same issue to one address,
$13.50 per year or $.35 each. Elsewhere, $20.00 per year
or $.50 each.
S e le c t e d I n t e r e s t a n d E x c h a n g e R a te s — W e e k ly S e ­
r i e s o f C h a r t s . W e e k ly . $15.00 p e r y e a r o r $.40 e a c h in
th e U n ite d S t a te s , its p o s s e s s io n s , C a n a d a , a n d M e x ic o ;
10 o r m o r e o f s a m e is s u e to o n e a d d r e s s , $13.50 p e r y e a r
o r $.35 e a c h . E ls e w h e r e , $20.00 p e r y e a r o r $.50 e a c h .
T h e F e d e r a l R e s e r v e A c t , as amended through December

1976, with an appendix containing provisions of certain
other statutes affecting the Federal Reserve System. 307
pp. $2.50.
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 e d ­
era l R eserve S yste m
P u b lis h e d I n t e r p r e t a t io n s o f t h e B o a r d o f G o v e r ­
n o r s , as of June 30, 1980. $7.50.
I n d u s t r i a l P r o d u c t i o n : 1976 Edition. 1977. 304 pp. $4.50

each; 10 or more to one address, $4.00 each.
1968. 102
pp. $1.00 each; 10 or more to one address, $.85 each.

B a n k C r e d it-C a r d a n d C h e c k -C r e d it P la n s .




1968. 321 pp.
$1.00 each; 10 or more to one address, $.85 each.

R e p o r t o f t h e J o in t T r e a s u r y -F e d e r a l R e se r v e S tu d y
o f t h 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 pp. $.25 each; 10 or more to one address, $.20 each.
J o in t T r e a s u r y - F e d e r a l R e s e r v e S t u d y o f t h e G o v ­
e r n 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 pp. $.50 each; 10 or more to one address, $.40
each. Part 2,1971. 153 pp. and Part 3,1973. 131 pp. Each
volume $1.00; 10 or more to one address, $.85 each.
O pen M a r k e t P o l ic ie s a n d O p e r a tin g P r o c e d u r e s —
S t a f f S t u d i e s . 1971. 218 pp. $2.00 each; 10 or more to

one address, $1.75 each.
R e a p p r a is a l o f t h e F e d e r a l R e s e r v e D is c o u n t M e c h a ­
n is m . Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3.

1972. 220 pp. Each volume $3.00; 10 or more to one ad­
dress, $2.50 each.
T h e E c o n o m e t r ic s o f P r ic e D e t e r m in a t io n C o n f e r ­
e n c e , October 30-31, 1970, Washington, D .C . 1972. 397

pp. Cloth ed. $5.00 each; 10 or more to one address,
$4.50 each. Paper ed. $4.00 each; 10 or more to one ad­
dress, $3.60 each.
F e d e r a l R e s e r v e S t a f f S t u d y : W ay s t o M o d e r a t e
F l u c t u a t io n s in H o u s in g C o n s t r u c t io n . 1972. 487

pp. $4.00 each; 10 or more to one address, $3.60 each.
L e n d in g F u n c t io n s o f th e F e d e r a l R e se r v e B a n k s .

1973. 271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
I m p r o v in g t h e M o n e t a r y A g g r e g a t e s : R e p o r t o f t h e
A d v is o r y C o m m itte e o n M o n e ta r y S t a t i s t i c s .

1976. 43 pp. $1.00 each; 10 or more to one address, $.85
each.
A n n u a l P e r c e n t a g e R a t e T a b l e s (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $1.00; 10 or more of same volume to one ad­
dress, $.85 each.
F e d e r a l R e s e r v e M e a s u r e s o f C a p a c ity a n d C a p a c ity
U t i l i z a t i o n . 1978. 40 pp. $1.75 each; 10 or more to one

address, $1.50 each.
T h e B a n k H o ld in g C om pany M o v em en t t o
C o m p e n d iu m . 1978. 289 pp. $2.50 each; 10 or

1978: A
more to

one address, $2.25 each.
I m p r o v in g t h e M o n e t a r y A g g r e g a t e s : S t a f f P a p e r s .

1978. 170 pp. $4.00 each; 10 or more to one address,
$3.75 each.
1977 C o n s u m e r C r e d i t S u r v e y . 1978. 119 pp. $2.00 each.
F l o w o f F u n d s A c c o u n t s . 1949-1978. 1979. 171 pp. $1.75
each; 10 or more to one address, $1.50 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 . 1980. 68 pp. $1.50 each;
10 or more to one address, $1.25 each.

All

C o n s u m e r E d u c a t io n P a m p h l e t s
Short pam phlets suitable fo r classroom use. Multiple cop­
ies available without charge.

Alice in Debitland
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Law­
yers, Small Retailers, and Others Who May Provide In­
cidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You

S

S t u d ie s
Studies and papers on economic and financial subjects that
are o f general interest.
taff

Summaries Only Printed in the Bulletin
Requests to obtain single copies o f the fu ll text or to be
added to the mailing list fo r the series may be sent to Pub­
lications Services.
T ie - in s B e t w e e n t h e G r a n t in g o f C r e d it a n d S a l e s o f
I n s u r a n c e by B a n k H o l d in g C o m p a n ie s a n d O t h e r
L e n d e r s , by Robert A. Eisenbeis and Paul R. Schweit­
zer. Feb. 1979. 75 p p .
I n n o v a t i o n s in B a n k L o a n C o n t r a c t i n g : R e c e n t E v i­
d e n c e b y P au l W. B o ltz a n d T im S. C a m p b ell. M ay
1979. 40 pp.
M e a s u r e m e n t o f C a p a c it y U t i l i z a t i o n : P r o b l e m s a n d
T a s k s , by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E . Kenessey. July
1979. 264 p p .




T h e G N M A -G u a r a n t e e d P a s s t h r o u g h S e c u r it y : M a r ­
k e t D e v e l o p m e n t a n d I m p l ic a t io n s fo r t h e
G r o w t h a n d S t a b il it y o f H o m e M o r t g a g e L e n d ­
in g , by D av id F. S e id e rs. D e c . 1979. 65 pp.
F o r e i g n O w n e r s h i p a n d t h e P e r f o r m a n c e o f U.S.
B a n k s , by James V. Houpt. July 1980. 27 pp.
P e r f o r m a n c e a n d C h a r a c t e r is t ic s o f E d g e C o r p o r a ­
t i o n s , by James V. Houpt. Feb. 1981. 56 pp.
B a n k in g S t r u c t u r e a n d P e r f o r m a n c e a t t h e S t a t e
L e v e l d u r in g t h e 1970s, by Stephen A. Rhoades. Mar.
1981. 26 pp.

Printed in Full in the Bulletin
o f B a n k H o l d in g C o m p a n ie s , by Robert
J. Lawrence and Samuel H . Talley. January 1976.

A n A ssessm ent

R e p r in t s
M ost o f the articles reprinted do not exceed 12 pages.

Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised Se­
ries. 7/72.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revised Series for Member Bank Deposits and Aggregate Re­
serves. 4/76.
Industrial Production—1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970’s. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
U.S. International Transactions in 1979: Another Round of
Oil Price Increases. 4/80.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign Indus­
trial Countries. 10/80.

A78

Index to Statistical Tables
References are to pages A-5 through A-71 although the prefix “A ” is omitted in this index
ACCEPTANCES, bankers, 10, 23,25
Agricultural loans, commercial banks, 18,19, 20,24
Assets and liabilities (See also Foreigners)
Banks, by classes, 17,18-21,27,68-73
Pomestic finance companies, 37
Federal Reserve Banks, 11
Foreign banks, U.S. branches and agencies, 68-71
Nonfinancial corporations, current, 36
Automobiles
Consumer installment credit, 40,41
Production, 46, 47
BANKERS balances, 17, 18-20, 68, 70, 72
{See also Foreigners)
Banks for Cooperatives, 33
Bonds (See also U.S. government securities)
New issues, 34
Yields, 3
Branch banks, 15, 21, 54, 68-71
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17,69,71,73
Federal Reserve Banks, 11
Central banks, 66
Certificates of deposit, 21, 25
Commercial and industrial loans
Commercial banks, 15,24
Weekly reporting banks, 18-21, 22
Commercial banks
Assets and liabilities, 3, 15,17,18-21
Business loans, 24
Commercial and industrial loans, 22, 24
Consumer loans held, by type, 40,41
Loans sold outright, 21
Nondeposit funds, 16
Number by classes, 17, 69, 71, 73
Real estate mortgages held, by holder and property, 39
Commercial paper, 3, 23,25,37
Condition statements (See Assets and liabilities)
Construction, 44,48
Consumer installment credit, 40,41
Consumer prices, 44,49
Consumption expenditures, 50,51
Corporations
Profits and their distribution, 35
Security issues, 34,63
Cost of living (See Consumer prices)
Credit unions, 27,40,41
Currency and coin, 5,17,68,70,72
Currency in circulation, 4,13
Customer credit, stock market, 26
DEBITS to deposit accounts, 12
Debt (See specific types o f debt or securities )
Demand deposits
Adjusted, commercial banks, 12,14
Banks, by classes, 17, 18-21, 69, 71, 73
Ownership by individuals, partnerships, and
corporations, 23




Demand deposits—Continued
Subject to reserve requirements, 14
Turnover, 12
Deposits (See also specific types)
Banks, by classes, 3 ,1 7 ,1 8 - 2 1 , 27
Federal Reserve Banks, 4 ,1 1
Turnover, 12
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 44,
Eurodollars, 25

45

FARM mortgage loans, 39
Farmers Home Administration, 39
Federal agency obligations, 4 ,1 0 ,1 1 ,1 2 ,3 2
Federal and federally sponsored credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 30
Receipts and outlays, 2 8 ,2 9
Treasury operating balance, 28
Federal Financing Bank, 2 8 ,3 3
Federal funds, 3 ,6 , 1 8 ,1 9 ,2 0 ,2 5 , 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Intermediate Credit Banks, 33
Federal Land Banks, 33, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4 ,1 1 ,1 2 , 30, 31
Federal Reserve credit, 4, 5, 11,12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 20, 40, 41
Paper, 2 3 ,2 5
Financial institutions, loans to, 1 8 ,1 9 ,2 0
Float, 4
Flow of funds, 4 2 ,4 3
Foreign
Banks, assets and liabilities of U.S. branches and
agencies, 68-71
Currency operations, 11
Deposits in U.S. banks, 4, 1 1 ,1 8 ,1 9 ,2 0
Exchange rates, 66
Trade, 53
Foreigners
Claims on, 54, 56, 59, 6 0 ,6 1 , 65
Liabilities to, 21, 5 4 -5 8 ,6 2 -6 4
GOLD
Certificates, 11
Stock,4 ,5 3
Government National Mortgage Association, 33,
Gross national product, 5 0 ,5 1

3 8 ,3 9

A79

HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50,51
Industrial production, 44,46
Installment loans, 40,41
Insurance companies, 27, 30, 31, 39
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 24
Federal Reserve Banks, 3,7
Foreign countries, 66
Money and capital markets, 3,25
Mortgages, 3,38
Prime rate, commercial banks, 24
Time and savings deposits, 9
International capital transactions of the
United States, 54-65
International organizations, 54-59,62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific typ e s )
Banks, by classes, 17,27
Commercial banks, 3,15,17,18-20,68,70,72
Federal Reserve Banks, 11,12
Life insurance companies, 27
Savings and loan associations, 27
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific typ es )
Banks, by classes, 17,18-21,27
Commercial banks, 3,15,17,18-21,22,24,68,70,72
Federal Reserve Banks, 3,4,5,7,11,12
Insurance companies, 27,39
Insured or guaranteed by United States, 38, 39
Savings and loan associations, 27
MANUFACTURING
Capacity utilization, 44
Production, 44,47
Margin requirements, 26
Member banks
Assets and liabilities, by classes, 17
Borrowings at Federal Reserve Banks, 5,11
Federal funds and repurchase agreements, 6
Number, 17
Reserve requirements, 8
Reserves and related items, 3,4,5,14
Mining production, 47
Mobile home shipments, 48
Monetary aggregates, 3,14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3,9,18-20,27,30,31, 39
NATIONAL defense outlays, 29
National income, 50
OPEN market transactions, 10
PERSONAL income, 51
Prices
Consumer and producer, 44,49
Stock market, 26
Prime rate, commercial banks, 24
Production, 44,46
Profits, corporate, 35




REAL estate loans
Banks, by classes, 18-20,27, 29
Life insurance companies, 27
Mortgage terms, yields, and activity, 3, 38
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 6,18,19,20
Reserve requirements, member banks, 8
Reserves
Commercial banks, 17,68,70,72
Federal Reserve Banks, 11
Member banks, 3,4, 5,14,17
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40,41,44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan assns., 3,9,27, 31,39,42
Savings deposits (See Time deposits)
Savings institutions, selected assets, 27
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 26
Special drawing rights, 4,11,52, 53
State and local governments
Deposits, 18,19, 20
Holdings of U.S. government securities, 30, 31
New security issues, 34
Ownership of securities of, 18,19,20,27
Yields of securities, 3
Stock market, 26
Stocks (See also Securities)
New issues, 34
Prices, 26
TAX receipts, federal, 29
Time deposits, 3,9,12, 14,17,18-21
Trade, foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4,11,28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. balance of payments, 52
U.S. government balances
Commercial bank holdings, 18,19,20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4,11,28
U.S. government securities
Bank holdings, 17,18-20,27, 30, 31,68,70,72
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4,11,12, 30, 31
Foreign and international holdings and transactions, 11,
30, 62
Open market transactions, 10
Outstanding, by type and ownership, 30,31
Rates, 3,25
Utilities, production, 47
VETERANS Administration, 38,39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44,49
YIELDS (See Interest rates)

A80

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

Chicagi

Dallas®

SSSHS
ALASKA
HAW AI

Legend

Boundaries of Federal Reserve Districts

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

Federal Reserve Branch Cities
Federal Reserve Bank Facility

Board of Governors of the Federal Reserve
System

Q