Full text of Federal Reserve Bulletin : May 1973
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F ed eral R eserv e Bulletin BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 MAY 1973 A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U .S. currency. (Stamps and coupons not accepted) FEDERAL RESERVE BULLETIN CONTENTS NUMBER 5 □ VOLUME 59 □ MAY 1973 317 Financial Developments in the First Quarter of 1973 327 Staff Economic Studies: Summary 329 Member Bank Income, 1972 336 Yields on Recently Offered Corporate Bonds 339 The Structure of Reserve Requirements 345 Record of Policy Actions of the Federal Open Market Committee 353 Law Department 375 Announcements 381 National Summary of Business Conditions Financial and Business Statistics A A A A A 1 3 3 4 72 Contents Guide to Tabular Presentation Statistical Releases: Reference U.S. Statistics International Statistics A 112 Board of Governors and Staff A 114 Open Market Committee and Staff; Federal Advisory Council A 115 Federal Reserve Banks and Branches A 116 Federal Reserve Board Publications A 120 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee Robert Solomon Ralph C. Bryant Robert C. Holland Joseph R. Coyne Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. F in an cial D e v e lo p m e n ts in th e First Q u a rter of 1973 This report, which was sen t to the Joint E conom ic C om m ittee o f the U .S. C o n g ress, highlights the im portant developm en ts in finan cial m arkets during the w inter and early spring. A monetary policy of restraint was pursued during the first quarter in an effort to help curb inflationary pressures. With the Federal Reserve holding back on the provision of nonborrowed reserves to the banking system, with growth in both the narrowly and the broadly defined money stock slowing, and with short-term credit demands continuing strong, short-term interest rates rose markedly over the quarter, and the rise continued in April. Demands on longer-term credit markets were relatively moderate, and long-term interest rates showed a considerably less marked rise. The Federal Reserve discount rate was adjusted upward in several stages from AV2 per cent early in the year to 6 per cent in early May. There was a large increase in bank credit during the first quarter. This in part reflected a shift of credit demands to banks from the commercial paper market as the prime loan rate was low relative to market rates. In addition, there were credit demands on banks— particularly from foreign commercial banks— in connection with the large outflow of dollars from the United States. It is difficult to identify completely the means of financing the dollar outflow. Apart from bank loans, much of the outflow was probably financed by liquidation of dollar securities and to a minor extent by reduction of cash balances. These funds came back to the United States mainly in the form of purchases of U .S. Treasury securities by foreign official accounts. Thus, the international currency crisis was associated with considerable churning in domestic money markets, some expansion in bank credit, and transitory effects on the struc ture of interest rates; impacts on the general level of interest rates and the money stock appear to have been minor. FEDERAL RESERVE BULLETIN □ MAY 1973 318 MONETARY AGGREGATES Nonborrowed reserves declined at about a 7 per cent annual rate in the first quarter, following a period of slow growth in the second half of last year. As bank credit demands continued strong, banks sought to acquire reserves in the Federal funds market. The Federal funds rate— the rate banks pay for reserve funds borrowed overnight from other banks— rose from an average of 5.33 per cent in December to 7.09 per cent in March and rose further in the course of April. With market rates rising, banks also increased their borrowings from Federal Reserve Banks, though at a higher cost as the discount rate was adjusted upward. 1 BANK RESERVES BILLIONS OF DOLLARS, SEASONALLY ADJUSTED * Break in series due to reserve requirement change. M onthly averages o f daily figures for member banks. Nonborrowed reserves are total reserves adjusted m inus member bank borrowings from the Federal R eserve. The increased indebtedness to the Federal Reserve and the rising interest rates that had to be paid on day-to-day money in the Federal funds market placed bank reserve positions under increasing pres sure as the quarter progressed. This pressure was associated with reduced bank participation in securities markets, some tightening of lending terms, particularly to large business borrowers, and a reduced rate of expansion in money stock aggregates. The narrowly defined money stock, M u slowed to a 1.7 per cent annual rate of growth in the first quarter of 1973, tending thereby to offset the relatively rapid 8.6 per cent growth rate in the fourth quarter of 1972. For the 6 months together, M x increased at a 5.2 per cent annual rate. In the first quarter, demands for FINANCIAL DEVELOPMENTS, Q1 1973 319 money may have been reduced by the cumulative impact of rising interest rates and possibly by growing concern over inflation leading to at least some temporary substitution of goods for cash. In addition, several special factors may have had an influence on growth of M x in the first quarter. In January, for example, there was some indication that demand deposits were reduced as State and local governments shifted revenue-sharing funds, received in December, out of demand balances into time deposits. A lso, in March the unusually light volume of business borrowing over the midmonth tax period suggests that corporations relied more heavily than usual on demand deposits as a source of funds for their tax payments. And finally, in the midst of the international disturb ances, as noted earlier, there could have been some minor m ove ment of funds abroad directly out of demand deposits in February and early March. Seasonally adjusted m onthly averages. M , is currency plus private demand deposits adjusted. A/2 is M x plus com m ercial bank tim e and savings deposits adjusted other than large C D ’s. M 3 is M 2 plus deposits at mutual savings banks and savings capital at savings and loan associations. The broader measures of the money stock, M2 and M3, also slowed significantly from the strong rates of growth maintained in 1972— expanding in the first quarter of 1973 at annual rates of 5.7 per cent and 8.6 per cent, respectively. These slowdowns reflected not only the tapering off of growth in M x but also, beginning in February, a further reduction in inflows of consumertype time and savings deposits at both commercial banks and nonbank thrift institutions. Consumer-type time deposits, with their lower offering yields, became considerably less attractive to inves tors later in the quarter as interest rates on competing market assets rose considerably. FEDERAL RESERVE BULLETIN □ MAY 1973 3 20 TABLE 1 CHANGES IN SELECTED MONETARY AGGREGATES1 In per cent, quarterly figures are seasonally adjusted annual rates 1972 Item 110*7 y /11 1973 1972 II III IV I Member bank reserves: Total .................................................. Nonborrowed ................................... Available to support private non bank deposits * ........................... 7.2 8.1 10.6 7.1 12.6 13.1 3.6 - .8 14.2 4.8 8.8 - 7 .1 7.2 9.7 6.6 9.9 10.6 10.5 Concepts of m oney:3 M , ....................................................... M 2 ....................................................... M a ....................................................... 6.6 11.4 13.5 8.3 10.8 13.0 6.1 8.5 10.7 8.2 10.3 12.4 8.6 10.2 11.5 1.7 5.7 8.6 Bank credit proxy, adjusted4 ......... 9.4 11.6 11.5 9.8 12.1 15.0 MEMO (change in billions of dol lars, seasonally adjusted): Large C D ’s ...................................... U .S. Govt, demand deposits at member banks ........................... 7.7 10.1 3.7 2.4 3.3 11.7 -.3 .4 .5 - 1 .1 1.4 .9 *Data for the money stock and other monetary aggregates have recently been revised to reflect changes in seasonal adjustment factors, corrections to the latest benchmark levels available for nonmember banks, and to adjust for discontinuity associated with the November 9 implementation of changes in Regulation J. A complete description of these revisions was published in the Federal Reserve B u l l e t i n for February 1973. 2Total reserves less required reserves for U .S. Government and interbank deposits. 3Af, is currency plus private demand deposits adjusted. M2 is M x plus bank time and savings deposits adjusted other than large C D ’s. M3 is M 2 plus deposits at mutual savings banks and savings capital at savings and loan associations. 4Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper. N o t e . — Changes are calculated from the average amounts outstanding in the last month of each quarter. There was, however, a sharp increase in outstanding large negotiable time certificates of deposit issued by banks, which offset the slowing in demand deposits and consumer-type time deposits. This led to rapid expansion in the adjusted bank credit proxy, which grew at an annual rate of about 15 per cent in the first quarter, somewhat higher than in 1972. Much of this increase in bank credit reflected shifts in credit flows resulting from the relatively low prime loan rate and from borrowing to finance fund flows abroad. As banks aggressively bid for funds to meet these shifting credit demands, net sales of C D ’s increased by a record $11.8 billion in the first quarter, and offering rates on these instruments rose by more than 1Vi percentage points. Moreover, since by February most banks were already offering the maximum rate allowed under Regulation Q on C D ’s with maturity in excess of 90 days, an increasing proportion of the C D ’s sold during the first quarter was in shorter-term issues on which regulatory ceilings had been sus pended in 1970. Offering rates on these latter issues rose as high as 1 X A per cent at some of the larger New York City banks in April before declining slightly in mid-April. 321 FINANCIAL DEVELOPMENTS, Q1 1973 Accompanying this sharp expansion in bank credit demands, total reserves of banks rose by almost a 9 per cent annual rate in the first quarter and reserves to support private nonbank deposits (RPD’s) at about a IOV2 per cent rate. Much of the increase in RPD’s reflected reserves that were absorbed by the unusually large rise in large negotiable C D ’s and hence were not available to support expansion in M x and M2. BANK USES OF FUNDS Bank credit transactions in the first quarter were dominated by a sharp expansion in business loans. At the same time real estate and consumer loans continued to rise at rates close to their strong 1972 pace, so that total loans expanded at a particularly rapid rate in the first quarter. Consequently, even though the expansion in loans was offset in part by a reduction in bank holdings of U .S. Government securities, total loans and investments expanded at close to a 20 per cent rate in the first quarter, nearly V/2 times the 1972 growth rate. TABLE 2 CHANGES IN BUSINESS LOANS AND COMMERCIAL PAPER, 19731 Quarter B usiness Dealerloans placed at all com m ercial com m ercial paper ban ks2 Total Annual per centage rate of change of total B illions of dollars, seasonally adjusted (A verage m onthly changes) 1972— 1 II III .... IV .... 1.0 .8 1.3 1.6 .3 -.4 .2 1.0 1.1 .9 1.8 9 .9 10.0 8 .0 14.8 1973_I 4 .3 -1 .3 3 .0 2 4 .6 C h a n g e s are based on last-W ednesday-of-m onth data. 2 Adjusted for outstanding amounts o f loans sold to affiliates. The first-quarter surge in business borrowing from commercial banks was basically related to the continuing cyclical needs of corporations for working capital and inventory investment. In addition, however, bank credit demands were temporarily bolstered by unusual circumstances leading to changes in the structural composition of financial portfolios during the quarter. For example, as commercial paper rates rose above the prime rate, corporations found it more advantageous to finance short-term credit needs through banks. Thus, as shown in Table 2, the increase in business short-term credit demands in the first quarter was significantly lower when measured by the sum of business loans from banks plus borrowing in commercial paper markets, due to the substitution 322 BANK CREDIT-components CHANGE, BILLIONSOFd6lLA^S4 U.S. GOVT. SECURITIES OTHER SECURITIES JZL TOTAL LOANS 02 1972 03 Ql 1973 ♦Adjusted for $800 million matched sale-purchase transactions at the end of September. Seasonally adjusted. Business loans adjusted for transfers between banks and their holding companies, affiliates, sub sidiaries, or foreign branches. BANK LOANS-major components mm, iilliaui it m m j h REAL ESTATE a n ____ SECURITY rn i—i.R*. Ql Q2 1972 Q3 [III]*, i v - 9 Q4 Ql 1973 ♦Adjusted for $800 million matched sale-purchase transactions at the end of September. Seasonally adjusted. Loans adjusted for transfers between banks and their holding companies, affiliates, subsidiaries, or foreign branches. FEDERAL RESERVE BULLETIN □ MAY 1973 of one type of financing for the other. However, short-term business credit demands, when measured by the two types of lending together, were strong by historical standards, as economic activity expanded sharply. Although other interest rates were rising rapidly in the first quarter, commercial banks-limited increases in the prime rate in response to requests by the Committee on Interest and Dividends. In April, the CID issued guidelines to permit closer alignment between the prime rate that banks charge their large corporate customers and rates on other money market instruments. Under the two-tier system proposed by the CID, however, rates charged small businesses are to remain reasonably stable. The prime rate charged large business borrowers rose, subsequent to this CID action, in two steps of lA of a percentage point each to 7 per cent in early May. In addition to the increase in business borrowing in the first quarter, total bank lending was buoyed by a sharp expansion in loans to foreign commercial banks. Apparently, these banks responded to international developments by drawing on lines of credit with U .S. banks in order to take advantage of both changing exchange rates and the relative interest rate differentials in the U .S. and the Euro-dollar market. During February and March loans to foreign banks rose by about $2 billion, but by late March and early April some repayment of these loans had begun to develop. The high level of consumer credit demands in the first quarter— a continuation of the 1972 trend— was evidenced not only in the strong growth rate in direct bank loans to consumers, but also by a step-up in bank loans to finance companies. Similarly, borrowing at banks by other nonbank financial institutions— including mort gage bankers and real estate investment trusts— was unusually large. Although banks accommodated the growth in credit demands in the first quarter primarily through sales of negotiable C D ’s, they also acquired funds by reducing their holdings of U .S. Government securities— especially Treasury bills. On a seasonally adjusted basis, Treasury securities declined more than $1.4 billion during the first quarter. Furthermore, after increasing by less than $1 billion in January, bank holdings of securities other than Treasury issues showed almost no growth during February and March. The sharp over-all rise in bank credit demands over the last year, along with continual tightening of reserve positions, has caused banks to alter somewhat their lending practices. The results of a survey taken in January indicate that there has been a significant tightening of nonprice terms and conditions of bank lending since November of last year: compensating balance requirements are higher, maturity policies on loans are tighter, and standards of 32 3 FINANCIAL DEVELOPMENTS, Q1 1973 creditworthiness are more strict. Moreover, many banks in the survey indicated a growing reluctance to make term loans, which in prior months had represented an increasingly significant propor tion of new loans granted by banks. NONBANK INTERMEDIARIES AND MORTGAGE MARKETS NONBANK SAVINGS ACCOUNTS ANNUALRATEOFCHANGE, PERCENT 1972____________ 1973 Seasonally adjusted. On balance, the rate of growth of deposit inflows to nonbank thrift institutions during the first quarter of 1973 remained about the same as in the previous quarter. While the over-all rate of expansion remained historically strong, the quarterly performance was bol stered by the sharp increase in deposits during January; as the quarter progressed deposit growth slowed, especially at mutual savings banks. Contributing to this slower rate of growth in deposits of nonbank depositary intermediaries were the increasing relative attractiveness of yields on competitive market instruments and a decline in the rate of personal saving, which apparently in part reflected the unusual strength in consumer demand, especially for durable goods. To some extent, savings balances may have been drawn down in the first quarter in anticipation of larger refund checks to be paid by the Treasury on 1972 personal income tax returns. Mortgage debt outstanding increased at a seasonally adjusted quarterly rate of about $20 billion in the first quarter of 1973. Accumulation of both nonresidential and residential mortgage debt reached new highs, but the increase for the residential sector was particularly striking, at a quarterly rate of approximately $15 billion, compared with $11.3 billion a year earlier. TABLE 3 NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly rates 1972 1973 Type o f debt I II III IV Ie Total ............................................................ 15.6 16.2 16.3 17.1 20.1 R esidential ........................................... O ther1 ................................................... 11.3 4 .3 11.8 4 .4 11.8 4 .5 12.6 4 .5 14.9 5 .2 ‘ Includes com m ercial and other nonresidential as w ell as farm properties. e Partly estim ated. Savings and loan associations accounted for about half the increase in net mortgage debt during the first quarter. However, the net contributions from commercial banks and mutual savings banks were also exceptionally large for this time of year; and net activity by the Federal National Mortgage Association and related agencies operating in the secondary market expanded further on the average. FEDERAL RESERVE BULLETIN □ MAY 1973 3 24 FUNDS RAISED IN SECURITIES MARKETS With the exception of the mortgage sector, credit demands on the long-term market moderated appreciably during the first quarter of 1973. Corporate sales of long-term securities declined by more than 20 per cent, primarily as a consequence of the large volume of internally generated funds and the strong liquidity position of many firms. Because of the virtual absence of industrial borrowers from the long-term market and the continued tendency for utilities to do much of their financing in the equity market, public bond sales dropped 40 per cent below the October-December total. Takedowns of privately placed bonds were also down substantially from the record volume of the fourth quarter. Investment funds appear to have been readily available, but prospective borrowers were relatively few. New gross stock issues in the first quarter of 1973 rose by about 18 per cent. Much of this volume represented preferred stock offerings by public utilities, and the total included the largest such offering on record— a $500 million issue. TABLE 4 OFFERINGS OF NEW SECURITY ISSUES Quarterly totals in billions o f dollars, not seasonally adjusted 1973 1972 T ype o f issue I II III IV Ie Corporate securities— Total ............. B onds ..................................................... Stocks ................................................... 9.8 7 .0 2 .9 11.2 7 .4 3.8 9 .2 6.1 3.1 10.6 7 .3 3 .3 8.3 4 .4 4 .0 State and local government bonds ..................................................... 6 .0 6 .3 5 .5 5 .9 5 .6 e Estimated. N o t e .— D etails may not add to totals because of rounding. Long-term debt offerings by State and local governments de clined a little in the first quarter, with most of the decline occurring in sales of general obligation bonds. State and local governments had received $5.1 billion in revenue-sharing payments over the period from early December through the end of March, and rising tax revenues resulted in relatively comfortable fiscal positions for local governments in the aggregate, but these developments have not yet had a marked effect on long-term borrowing. However, State and local governments did retire about $1.5 billion of short term securities, which are not shown in Table 4, in the first quarter. Federal expenditures continued to exceed receipts during the first quarter, but the $9.5 billion deficit was $1 billion less than that registered either in the preceding quarter or in the comparable period a year earlier. Net cash borrowing by the Treasury amounted to $8.4 billion, more than twice as much as in the same quarter 32 5 FINANCIAL DEVELOPMENTS, Q1 1973 TABLE 5 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals in billions of dollars, not seasonally adjusted 1972 1973 Item I II III IV Ie Budget surplus or deficit .................. - 1 0 .5 5.6 - 2 .0 - 1 0 .5 - 9 .5 New cash borrowings, or repay ments ( —) ....................................... 3.9 - 6 .0 5.0 12.3 8.4 Other means of financing1 .............. 3.0 2.8 - 3 .3 - .5 2.9 Change in cash balance .................... -3 .6 2.4 - .3 1.3 1.8 .4 rl .4 .7 1.0 1.7 MEMO. Net borrowings by Federally sponsored credit agencies2 1Checks issued less checks paid and other accrued items. 2Includes debt of Federal home loan banks, the.Federal Home Loan Mortgage Corporation, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and bonds guaranteed by the Government National Mortgage Association). e Estimated. rRevised. of 1972. However, $7.7 billion of this represented sales of special issues to foreign central banks, in connection with the international exchange market difficulties in the first quarter. Because of the large first-quarter borrowing and with tax receipts also strong, the Treasury cash balance at the end of March was almost $13 billion, or $2 billion higher than at the end of December. Net borrowings by Federally sponsored credit agencies rose substantially in the first quarter, reflecting large issues by the Federal land banks, Federal intermediate credit banks, and the banks for cooperatives. INTEREST RATES In response to demands for short-term credit and the pressure of loan demands on the commercial banking system that resulted in unusually strong sales of C D ’s and some liquidation of Government securities, short-term interest rates advanced sharply over the first quarter of the year, bringing money market rates back to the levels of late 1970. Treasury bill rates rose by 1 percentage point, and the Federal funds rate jumped almost 2 points. Yields on commer cial paper were 140 basis points higher in March than they had been in December, while the prime rate had advanced by a much smaller amount. Reflecting these advances in other money market rates, the Federal Reserve discount rate was raised in two steps from AVi to 5 l/z per cent, and then in two steps to 6 per cent early in May. Given the rapid rise in short-term rates, the rise in long-term security yields was comparatively moderate. Yields on Treasury bonds showed little change, and the lack of new issues in the 3 INTEREST RATES LONGTERM SHORT-TERM CONVENTIONAL MORTGAGEShud COMMERCIAL PAPER i4-6 MONTH Aaa UTILITY NEWISSUE U.S. GOVT. STATE AND LOCAL GOVT. TREASURY BILLS 3-MONTH ♦L evel o f series was affected by issue of new 20-year U .S . G overnm ent bond in January. M onthly averages except for conventional mortgages (based on quotations for one day each month). Y ields: U .S . Treasury b ills, market yields on 3-m onth issues; prime com m er cial paper, dealer offering rates; conventional m ortgages, rates on first m ortgages in primary markets, unw eighted and rounded to nearest 5 basis points, from Dept, of H ousing and Urban D evelopm ent; corporate bonds, w eighted averages of new publicly offered bonds rated Aaa, A a, and A by M ood y’s Investors Service and adjusted to a Aaa utility basis; U .S . G ovt, bonds, market yields adjusted to 20-year constant maturity by U .S . Treasury; State and local govt, bonds (20 issu es, mixed quality), B ond B uyer. corporate debt area helped to restrain the rise in high-grade cor porate bond rates to about V3 of a percentage point. The increase of alm ost 1 percentage point in the yield on long-term Treasury bonds, shown in Chart 3, reflects a discontinuity in the calculation of the series resulting from the rare issuance of a 20-year bond in January. Tax-exem pt yields rose by only lA of a percentage point. Although volum e remained high, the supply of funds to the market remained ample. Since a high proportion of the new issues were revenue bonds or offerings of units with lower ratings— types of municipal bonds that generally carry higher yields— tax-exem pt securities were particularly attractive to fire and casualty com panies. M ortgage rates edged up only slightly during the quarter. □ Staff Economic Studies The research staffs of the B oard of Governors of the Federal R eserve System and of the Fed eral Reserve Banks undertake studies that cover a wide range of economic and financial sub jects , and other staff members prepare papers related to such subjects. In some instances the Federal R eserve System finances sim ilar studies by members of the academ ic profession. From time to time the results of studies that are of general interest to the economics profes sion and to others are summarized— or they may be printed in full— in this section of the Federal R eserve B u l l e t i n . In all cases the analyses and conclusions set forth are those of the authors and do not neces sarily indicate concurrence by the B oard of G overnors , by the Federal R eserve Banks , or by the members of their staffs. Single copies of the full text of each of the studies or papers summarized in the B u l l e t i n are available in mimeographed form. The list of Federal R eserve B oard publications at the back of each B u l l e t i n includes a separate section entitled “ Staff Economic S tu dies’9 that enumerates the studies fo r which copies are currently available in that form. Study Summary OBTAINING THE YIELD ON A STANDARD BOND FROM A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS James L. Kichline, P. M ichael Laub, and Guy V. G. Stevens — Staff , Board of Governors Presented in earlier form at the Econometric Society meetings in December 1971; revised in early 1973 This study describes a model and associated empirical results that are used to calculate a weekly index of yields on newly issued cor porate bonds. The index provides a sensitive measure of interest rates on corporate bonds and aids in analyzing current market developments. It is also expected that the yield series will provide, in many instances, a preferred substi tute for the corporate yield series on seasoned bonds that are now widely used in research efforts. The index is published in the Federal Reserve B u l l e t i n . There are relatively few new offerings of corporate bonds in a given week; on occasion there may be none. Moreover the small number of observations are for bonds with substantially heterogeneous characteristics. Newly issued bonds in any week may be from any industry group and may have different default risks, call options, call schedules, maturities, and so forth. Furthermore, the market valuation of some of these characteristics varies over time, in partic ular for the call option and the default risk. In order to track accurately the level and changes in a “ pure” yield on a newly issued corporate bond over time, it is necessary to measure the yield on a bond with invariant characteristics— a standard bond. The standard bond in this paper is defined as a new straight-debt, long-term (20 years or longer) issue by a utility, rated Aaa both by Moody’s Investors Service, Inc., and by Standard and Poor’s, Inc., that carries 5-year call protection and is underwritten by a process of competitive bidding. These characteristics were found to be empirically significant in de termining yield differentials among various cor porate new issues. A nonlinear regression model was developed to adjust the observed yields and to compute the implied yield on the standard bond. Call327 protection adjustments are calculated by using theoretical models developed by Gordon Pye and presented in articles published in the Jour nal of Finance. The rating spreads among dif ferent categories of corporate issues are assumed to be a linear function of the spread between the yield on the standard bond and the yield on a long-term Government bond that is as sumed to have no default risk. For the model that was finally selected, the slope coefficients in this function are positive and significantly different from zero. Thus, the rating spreads among different categories of corporate bonds 328 are tracked by taking advantage of the fact that the spreads between a given rating category for companies and a long-term Government bond tend to move together. The results indicate that bonds that are un derwritten by competitive bidding in general yield less than those underwritten by negotia tion. The study discusses several reasons for this phenomenon, as well as reasons why smaller and larger issues might yield more than those of intermediate sizes. However, the empirical results did not indicate that size of issue was an important variable. □ Member Bank Income, 1972 Net income of member banks continued to in crease in 1972, but the rate of growth was slower than in 1971 and was well below the rates in 1969 and 1970. The increase repre sented a substantial rise in after-tax profits from operations but a smaller net gain on securities transactions than in 1971. Member banks were able to add significantly to their earning assets in 1972. However, the over-all rate of return on such assets and the average cost of funds to banks were less than in the previous year. Both operating earnings and operating expenses increased substantially, with the rate of increase being slightly greater for expenses. Nevertheless, net income reached a record level. SUMMARY Operating income at member banks rose con siderably more in 1972 than in 1971, reflecting increases in revenues on both loans and invest ments. Although short-term market interest rates rose appreciably over the year and long term rates changed little on balance, average yields on bank portfolios were somewhat lower than in the previous year. These declines were more than offset by increases in holdings of both loans and investments. Outstanding loans rose considerably in nearly all major loan categories in response to the rapid upsurge in economic activity. With deposit inflows also remaining rapid, banks were able to meet expanding loan demands and at the same time to add to their holdings of investments. Operating expenses of member banks, while rising only slightly faster than operating income in 1972, increased almost twice as fast as in the previous year. Interest paid on time and savings deposits— the largest single expense for N o t e . —This article was prepared by Anthony W. Cyrnak of the Board’s Division of Research and Statis tics. banks— rose at a somewhat less rapid pace than in 1971, as inflows of these deposits moderated somewhat. Salaries and wages also rose less than in 1971. However, the rise in interest costs associated with the issuance of capital notes and debentures accelerated in 1972, and interest costs on Federal funds purchased and securities sold under repurchase agreements rose sharply following a marked decline in 1971. Provision for loan losses increased, but actual net loan losses were much less in 1972 than in 1971. And with total loans up substantially, the ratio of net loan losses to average loans outstanding decreased sharply. Member banks in 1972 again recorded net gains on securities transactions. Also, extraor dinary charges or credits after taxes added slightly to income. Although operating profits (income before income taxes and securities gains or losses) expanded appreciably, applica ble income taxes showed only a negligible rise. As a result, net income of member banks rose to a new high of $4,400 million, an increase of 6.9 per cent over the 1971 level. This rate of increase, however, was smaller than that of the previous year and also less than the rate of growth in net worth (equity capital plus re serves). Thus, the ratio of net income to equity capital plus reserves declined slightly. Cash dividends declared fell for the first time since the early 1940’s, and the ratio of dividends to net income also declined. Among large banks in money market centers • and other areas, those in New York City (which have extensive foreign operations and a smaller proportion of their total deposits in savings and consumer-type time deposits) recorded the fas test rate of growth in net income. All other banks, while posting strong increases in loan income during the year, were faced with sharply rising interest expenses on time and savings deposits, and their net income increased more slowly. 32 9 330 FEDERAL RESERVE BULLETIN □ MAY 1973 OPERATING INCOME Member bank operating income rose to $31,335 million in 1972 (Table 1), an increase of $2,665 million or 9.3 per cent compared with increases of 2.7 per cent in 1971 and of 11.7 per cent in 1970. Unlike other recent years, the propor tion of bank revenue derived from securities decreased slightly, whereas there was an in crease in the contribution of loan revenue to operating income. Interest and fees on loans (including Federal funds sold and securities purchased under resale agreements) in 1972 amounted to $20,791 mil lion. This represents an increase of $1,797 mil lion, or 9.5 per cent, for the year and contrasts sharply with the 2.5 per cent decline in 1971. The average rate of return on loans declined again in 1972, but less than in 1971, due in part to some shifting of the loan mix toward higher-yield categories, particularly real estate and consumer loans. But this decline was more than offset by the increase in total loans out standing. TABLE 1 CONSOLIDATED REPORT OF INCOME FOR 1969-72 FOR ALL MEMBER BANKS Amount in m illions o f dollars C hange, 1 9 7 1 -7 2 Item 1969 In m illions of dollars Per cent 1972 1971 1970 3 1 ,3 3 5 2 8 ,6 7 0 2 7 ,9 1 3 2 4 ,9 9 1 2 ,6 6 5 9 .3 19,997 794 18,317 677 18,706 781 17,104 649 1,680 117 9 .2 17.3 6 ,0 8 6 2 ,4 1 2 730 2 ,7 0 9 234 1,269 904 864 5,6 6 2 2 ,4 3 4 578 2 ,4 6 8 182 1,182 896 795 4 ,8 3 2 2 ,2 0 8 415 2 ,0 9 0 118 1,075 868 681 4 ,2 6 3 2,041 322 1,794 106 972 835 557 424 -2 2 152 241 52 87 8 69 7 .5 -.9 2 6 .3 9 .8 2 8 .6 7 .4 .9 8.7 254 1,168 340 802 346 625 137 473 -8 6 366 -2 5 .3 4 5 .6 O p era tin g e x p e n ses— T o ta l ........................................................................................ 2 5 ,6 3 9 2 3 ,3 4 6 2 2 ,1 9 3 1 9 ,525 2 ,2 9 3 9 .8 Salaries and w ages o f officers and em p loyees .................................................. Officer and em ployee benefits ................................................................................. Interest on— T im e and savings deposits .............................................................................. Federal funds purchased and securities sold under repurchase agreem ents......................................................................................................... Other borrowed m o n e y ...................................................................................... Capital notes and d eb en tu res........................................................................... Net occupancy expense ............................................................................................. Furniture, equipm ent, e tc ........................................................................................... Provision for loan losses ........................................................................................... Other operating expenses .......................................................................................... 6 ,0 2 0 1,073 5 ,6 6 6 973 5 ,2 8 2 876 4 ,6 9 0 749 354 100 6 .2 10.3 10,513 9 ,4 2 6 8 ,1 3 9 *7,059 1,087 11.5 1,387 102 184 1,259 848 767 3,4 8 6 1,073 127 123 1,130 797 681 3 ,3 4 8 1,365 444 90 1,013 722 534 3 ,7 2 8 1,177 562 89 867 615 381 3 ,3 3 6 314 -2 5 61 129 51 86 138 2 9 .3 - 1 9 .7 4 9 .6 11.4 6 .4 12.6 4.1 5 ,6 9 6 1,356 4 ,3 4 0 46 14 (2) 4 ,4 0 0 1,839 5 ,3 2 5 1,349 3 ,9 7 6 144 -3 (2) 4 ,1 1 7 1,908 5 ,7 2 0 1,775 3 ,9 4 5 -1 0 7 -1 5 (2) 3 ,8 2 3 1,754 5 ,4 6 7 1,813 3,6 5 3 -2 0 9 5 (2) 3 ,4 5 0 1,523 371 7 364 -9 8 17 (2) 283 -6 9 7 .0 .5 9 .2 O p era tin g in c o m e — T o ta l ........................................................................................... Loans: Interest and fees ............................................................... ....................................... Federal funds sold and securities purchased under resale agreement Securities: E xcluding trading account incom e— total ..................................................... U .S . Treasury securities ................................................................................. U .S . G ovt, agencies and corporations ....................................................... States and political subdivisions ......................................... ........................ Other securities .................................................................................................... Trust department .......................................................................................................... Service charges on deposit accounts .................................................................... Other charges, fe e s, e tc ............................................................................................... Other operating incom e: On trading account (net) ...................................................................................... Other ............................................................................................................................ Income before incom e taxes and securities gains or losses .............................. Applicable incom e taxes ................................................................................................ Incom e before securities gains or losses ................................................................. Net securities gains or losses ( - ) after tax ............................................................. Extraordinary charges ( - ) or credits after taxes ................................................... L ess minority interest in consolidated subsidiaries ............................................. Net incom e ........................................................................................................................... Cash dividends declared3 .............................................................................................. *This item excludes, and “ interest on other borrowed m on ey” and “ other operating ex p en ses” include, $101 m illion of interest on Euro-dollar borrowing incorrectly reported as interest on time and savings deposits. 6 .9 -3 .6 2Less than $ 5 0 0 ,0 0 0 . 3On com m on and preferred stock. Note.— Figures may not add to totals because of rounding MEMBER BANK INCOME, 1972 331 TABLE 2 CHANGES IN MEMBER BANK AVERAGE LOANS, INVESTMENTS, DEPOSITS, AND CAPITAL OUTSTANDING IN 1972 Amounts shown in millions of dollars Average amount1 Change Item Amount Per centage 383,620 431,505 47,885 12.5 13,359 250,902 99,336 6,981 57,542 16,964 284,128 106,003 7,910 66,913 3,605 33,226 6,667 929 9,371 27.0 13.2 6.7 13.3 16.3 9,137 18,379 52,568 6,960 12,177 23,090 59,978 8,058 3,040 4,711 7,410 1,098 33.3 25.6 14.1 15.8 U.S. Treasury securities3 ...... U.S. Govt, agency and cor poration securities3 ............ States and political subdivi sion securities3 ................. Other securities3 .................... Trading account securities.... 43,380 44,543 1,163 2.7 9,320 12,000 2,680 28.8 59,126 2,563 4,970 65,837 3,503 4,529 6,711 940 -4 4 1 11.4 36.7 - 8 .9 Total deposits......................... Time deposits ......................... Savings .............................. Other time I.P.C................. All other time .................... 404,182 197,571 82,002 87,655 27,915 447,454 227,592 90,163 102,814 34,615 43,272 30,021 8,161 15,159 6,700 10.7 15.2 10.0 17.3 24.0 Equity capital4 ....................... Total capital accounts5 ......... Reserves on loans and securities ............................ Total equity capital and reserves .............................. 33,502 35,734 36,222 39,322 2,720 3,588 8.1 10.0 1971 Total loans and investments, gross2 .............................. Federal funds sold and securi ties purchased under resale agreement .......................... Other loans ............................. Commercial and industrial Agricultural ....................... Real estate ......................... For purchasing and carry ing securities ................. To financial institutions ... Other loans to individuals. All other ............................. 1972 5,323 5,518 195 3.7 38,825 41,739 2,914 7.5 Averages of figures for three call dates— the end of the preceding year and the June 30 and December 31 call dates for the calendar year, includes securities held in trading account. 3Excludes securities held in trading account. includes common stock, preferred stock, surplus, undivided profits, and reserves for contingency and other capital reserves, includes equity capital plus capital notes and debentures. The increase in average holdings of loans by member banks in 1972 was $36,831 million, or 13.9 per cent— substantially above that of the previous year (Table 2). Some change in the composition of loan portfolios at member banks continued to occur. Despite the upsurge in eco nomic activity, commercial and industrial loans rose only 6.7 per cent in 1972, about half the rate of increase in total loans, although growth accelerated considerably after midyear. The rel atively moderate demand for these loans re flected in large part the expanding volume of internally generated funds available to corpora tions from improved profits and liberalized de preciation rules. The bank prime rate on busi ness loans increased steadily during 1972 after declining in 1971, but was down somewhat on average. Real estate loans outstanding at member banks in 1972 increased $9,371 million, or 16.3 per cent; such loans accounted for about onefourth of the growth of total loans during the year. Reflecting a strong increase in the demand for new housing, this increase was nearly IVi times as large as that recorded in 1971. Instal ment credit for auto purchases accounted for much of a $7,410 million, or 14.1 per cent, increase in consumer loans of member banks during 1972. Interest and dividends earned on portfolio investments (excluding trading account) were higher in 1972 than in 1971 as the rise in holdings of these securities more than offset the decline in the average rate of return. Member bank earnings derived from portfolio securities rose by $424 million, or 7.5 per cent, in 1972. With loan demands stronger and deposit inflows somewhat reduced, average holdings of securi ties rose $ 11,494 million, or about one-third less than in 1971. As in 1971, however, member banks added longer-term securities to their portfolios, which tended to cushion the decline in average yield. Average holdings of U.S. Treasury securities by member banks increased by $1,163 million, or 2.7 per cent, in 1972, substantially less than in 1971. In addition, the average rate of return on these securities declined 20 basis points to 5.41 per cent during the year (Table 3). As a result, earnings from this source decreased 1 per cent, in contrast to an increase of 10 per cent in 1971. Income from securities of States and political subdivisions rose nearly 10 per cent in 1972 compared with 18 per cent in 1971. Although the average rate of return on these securities also fell, average holdings increased more than enough to offset this decline. Income from obli gations of U.S.Government agencies and of “ all other” securities rose rapidly— 26.3 and 28.6 per cent, respectively— for the most part in 3 32 FEDERAL RESERVE BULLETIN □ MAY 1973 response to greatly expanded holdings of these investments. Income from other sources in the aggregate increased in 1972, although less rapidly than in 1971 and 1970. Trust department income rose $87 million, or 7.4 per cent. Service charges on deposit accounts increased by $8 million (1 per cent) and other charges and fees by $69 million (8.7 per cent). “ Other operating in come” includes several items, among them net income from trading account, foreign branches, TABLE 3 SELECTED MEMBER BANK INCOME RATIOS In per cent Ratios Ratios to equity capital (including reserves)— Income before securities gains or lo sses ....................... N et incom e ................................... Cash dividends declared1 Rates of return on— Loans, gross ................................ U .S . Treasury securities2 ...... U .S . G ovt, agencies and corporations2 ........................... State and local govt. obligations2 ............................ Other securities2 ......................... Interest on time deposits to total time deposits ................ 1972 1971 1970 1969 10.38 10.54 4 .4 0 10.22 10.60 4.91 10.75 10.44 4 .7 9 10.70 10.10 4 .4 6 6 .9 0 5.41 7 .1 8 5.61 7.91 5 .6 2 7 .5 7 4 .9 5 6 .0 8 6 .2 0 6 .5 5 5.81 4.11 6 .6 7 4 .1 7 7 .1 0 4 .2 3 6 .3 0 3.87 5 .5 9 4.61 4 .7 7 4 .9 8 4 .4 7 'On com m on and preferred stock. 2Excludes securities held in trading account. N o t e . — T hese ratios were com puted from aggregate dollar amounts o f incom e and expense item s. The capital, deposits, loans, and securities items on which the ratios were based were averages for tw o call dates in the calendar year and the last call date in the preceding year. and Edge Act subsidiaries. Income from trading account decreased substantially during 1972— $86 million, or 25.3 per cent. Earnings from foreign branches showed a significant in crease— $201 million, or more than twice the increase in 1971. This growth reflected the con tinuing expansion of foreign operations by member banks. OPERATING EXPENSES Total operating expenses in 1972 rose 9.8 per cent to a total of $25,639 million. Virtually all expense items showed increases except interest on other borrowed money. Interest paid on time and savings deposits rose $1,087 million, or 1K5 per cent. Member banks expanded their average holdings of these deposits by 15.2 per cent, but interest rates paid, on the average, declined by 16 basis points to 4.61 per cent. As in 1971, much of the increase in these expenses reflected the large inflows of regular savings and consumer-type time deposits. While most banks did not change their offering rates on consumer-type deposits during the year, some large banks holding substantial amounts of these deposits reduced their offering rates in early 1972 and maintained these reductions throughout the year. Rates paid on large negotiable CD’s— a ratesensitive money market instrument issued in denominations of $100,000 and over— fluc tuated during the first half of 1972 before post ing steady increases in the second half, but were lower on average than in 1971. The amount of these deposits outstanding rose somewhat more in 1972 than in 1971. Interest expenses on Federal funds purchased and securities sold under repurchase agreements increased $314 million, or 29.3 per cent, fol lowing a decrease of roughly this amount in 1971. The volume of these funds used rose substantially, while the average rate paid de clined from 4.66 to 4.44 per cent. Interest expenses on other borrowed money, however, declined $25 million, reflecting in part a further reduction in the volume of Euro-dollar borrow ing and a decline of more than 2 percentage points in average rates paid on such borrowings. Salary and wage expenses (including bene fits) at member banks increased $454 million, or 6.8 per cent, during 1972. This was less than the 8 per cent increase in the preceding year, and it reflected a successful attempt on the part of member banks to hold down these expenses despite a 3 per cent growth in the total number of employees. Provision for loan losses totaled $767 million in 1972; this was 12.6 per cent more than in 1971, and it compared with an increase of 13.9 per cent in loans outstanding. Nearly all banks operate on a reserve-accounting method, and for most of these banks, the provision for loan 333 MEMBER BANK INCOME, 1972 losses is an estimate of the losses that the bank may reasonably expect to incur on the current loan portfolio (determined by methods pre scribed by supervisory authorities).1 For ac counting purposes, this item is a current operat ing expense and, therefore, affects net income in the current year. Actual net loan losses reported by member banks in 1972 totaled $717 million, 21.6 per cent less than the $914 million (a record for recent years) posted in 1971 when a few large banks experienced sizable losses. The decline in losses, coupled with the general expansion in loans outstanding, caused the ratio of net loan losses to average loans outstanding to drop to 0.23 per cent in 1972— substantially below the 0.34 and 0.32 per cent recorded in 1971 and 1970, respectively. With long-term rates in 1972, as in 1971, appreciably below the record highs of 1970 and with needs for capital expanding, member banks added substantially to their outstanding capital notes and debentures. Interest expense from this source rose nearly 50 per cent from the 1971 level to a total of $184 million. Furniture and equipment expenses rose $51 million or 6.4 per cent during 1972. Net occupancy expenses amounted to $1,259 mil lion— $129 million, or 11.4 per cent, more than in 1971. All other expenses (except for Euro dollar interest expenses, which some banks report in this figure) increased slightly during the year. INCOME TAXES Provision for income taxes at all member banks amounted to $1,260 million in 1972. Although operating income (that is, income before income taxes and security gains or losses) rose 7 per cent, applicable taxes on operating income rose only $7 million or less than 1 per cent, reflecting the significant contribution of interest on taxexempt securities to 1972 income growth. In 1972, tax-free transfers from capital accounts to reserves for loan losses reduced Federal in come taxes of member banks by $153 million, approximately the same amount as in 1971. NET INCOME AND CASH DIVIDENDS Net income of member banks rose $283 million, or 6.9 per cent, in 1972 to $4,400 million. This was slightly below the 7.7 per cent rise in 1971. With equity capital plus reserves rising slightly faster than net income, the rate of return on net worth at member banks declined very slightly to 10.54 per cent. Despite the increase in net income, cash div idends declared during 1972 were $69 million, or 3.6 per cent, less than in 1971. Relative to net income, dividends declined 4 percentage points from the preceding year to 42 per cent. The ratio of dividends declared to equity capital plus reserves (net worth) also fell— from 4.91 per cent in 1971 to 4.40 per cent. NET INCOME BY SIZE OF BANK As in other years there were differences in earnings between large money market banks and all other banks in the United States. At large Member banks again realized capital gains on banks in New York and Chicago, net income sales of investment securities in 1972. Such rose 11.6 per cent and 6.9 per cent, respec gains totaled $46 million, considerably below tively. These figures compare with increases of the $144 million recorded in 1971, when market 3.8 per cent for large banks in “ other” cities values of these assets had increased consid and 7.4 per cent at “ all other” banks (Table erably. Extraordinary charges or credits after 4). taxes were, for the first time in a number of Net income at large New York City banks years, a slight “ plus” factor in net income. rose faster in 1972 than in 1971 despite rela tively weak loan demand over most of the year. 1 All member banks that do.not provide for loan losses Loan income at these banks increased only 3.9 on a reserve basis must use their actual net loan losses per cent as compared with 9.5 per cent for all each year as a minimum “provision for loan losses.” member banks. Income from foreign branches Other banks may use this method if they do so on a of these banks, however, rose much more than regular basis. OTHER TRANSACTIONS 334 FEDERAL RESERVE BULLETIN □ MAY 1973 TABLE 4 CONSOLIDATED REPORT OF INCOME FOR 1972 AND 1971 FOR MEMBER BANKS GROUPED BY CLASS In m illions o f dollars Large banks All member banks Item O p era tin g in c o m e — T o ta l ................. Loans: Interest and fees ............................ Federal funds sold and securities p u rc h a se d un der r e sa le agreem ent .............................. Securities: Excluding trading-account in com e: U .S Treasury securities ........ U .S . G ovt, agencies and cor porations ............................... States and political subdivi sions ........................................ Other securities ......................... Trust department ................................ Service charges on deposit ac counts ............................................... Other charges, fees, e tc .................... Other operating incom e: On trading account (net) ............ Other .................................................. O p era tin g e x p en ses— T o ta l ............. Salaries and w ages o f officers and em ployees ................................... Officer and em ployee benefits ....... Interest on— Time and savings deposits ........ Federal funds purchased and se curities sold under repur chase a g r ee m e n ts................. Other borrowed m oney ............. Capital notes and debentures ... Net occupancy expense .................. Furniture, equipm ent, e tc ................. Provision for loan losses ................. Other operating expenses ............... Income before incom e taxes and s e curities gains or losses — Applicable incom e taxes ...................... Income before securities gains or losses ...................................... Net securities gains or losses( —) after taxes ........................................ Extraordinary charges ( —) or credits after taxes .............................. L ess minority interest in consolidated su b sid ia ries............................ Net incom e ................................................ Cash dividends declared ...................... Ratios (per cent): T o equity capital (incl. reserves): Income (after taxes) before se curities gains or losses .......... Net incom e ...................................... ^ss than $500,000. All other banks N ew York City City of C hicago Other 1972 1971 1972 1971 1972 1971 1972 1971 1972 1971 3 1 ,3 3 5 2 8 ,6 7 0 4 ,9 9 2 4 ,7 2 5 1,285 1,175 1 1 ,6 7 9 10,678 13 ,3 7 8 12,093 19,997 18,317 3 ,1 8 0 3 ,0 5 3 804 727 7 ,6 0 9 6 ,9 3 7 8,4 0 3 7,601 794 677 48 55 45 31 390 294 310 298 2 ,4 1 2 2 ,4 3 4 260 272 77 87 757 768 1,318 1,307 73 0 578 31 40 10 11 160 122 529 40 6 2 ,7 0 9 234 1,269 2,468 182 1,182 341 34 374 308 32 368 122 9 97 101 7 89 915 73 507 865 65 461 1,332 117 291 1,194 77 264 904 864 896 795 74 107 68 120 7 28 6 25 335 411 334 377 488 317 487 2 74 254 1,168 340 802 103 439 112 297 22 63 56 35 112 409 151 305 16 257 21 164 2 5 ,6 3 9 2 3 ,3 4 6 3 ,9 1 5 3 ,7 0 0 1,021 922 9 ,6 7 9 8 ,8 2 2 11 ,0 2 3 9 ,9 0 1 6 ,0 2 0 1,073 5 ,6 6 6 973 989 217 956 200 207 41 195 39 2 ,2 9 5 396 2,141 359 2 ,5 3 0 4 19 2 ,3 7 5 376 10,513 9 ,4 2 6 1,262 1,145 418 362 3 ,7 9 4 3 ,475 5 ,0 3 9 4 ,4 4 4 1,387 102 184 1,259 848 767 3 ,4 8 6 1,073 127 123 1,130 797 681 3 ,3 4 8 361 21 50 251 109 158 497 299 39 38 218 102 128 575 129 12 4 50 26 36 100 102 11 2 46 25 34 106 732 51 90 451 317 294 1,260 568 61 56 403 302 255 1,201 165 18 41 508 396 279 1,629 104 15 26 463 368 263 1,466 5 ,6 9 6 1,356 5 ,3 2 5 1 ,349 1,077 296 1,025 318 264 58 252 71 2 ,0 0 0 513 1,856 467 2 ,3 5 5 488 2,191 493 4 ,3 4 0 3 ,9 7 6 781 706 205 182 1,487 1,388 1,867 1,699 46 144 -2 7 -4 7 -5 93 14 -3 9 -7 (i) -1 38 58 2 3 2 2 (i> 1,429 7 16 (i) 1,927 688 (i) 1,794 648 10.18 10.48 10.86 11.24 10.66 11.29 (i) 4 ,4 0 0 1,839 (i) 4 ,1 1 7 1,908 788 310 706 466 201 122 188 78 (i) 1,484 719 10.38 10.54 10.22 10.60 9 .7 2 9.81 9.51 9.51 9 .8 9 9 .6 8 9 .5 8 9 .8 8 10.24 10.23 Note.— Figures may not add to totals because of rounding. MEMBER BANK INCOME, 1972 in other recent years. Chicago banks experi enced a more rapid increase in income from loans than New York banks, but interest ex penses on time and savings accounts and Federal funds purchased (which are a greater proportion of operating expenses for Chicago banks) rose even more rapidly. As a result, net income for large banks in Chicago was up about 10 per centage points less in 1972 than in 1971. 335 Net income at other large banks rose nearly 3 percentage points less in 1972 than in 1971 while that of “ all other banks,” a group that includes many small banks, rose at close to the same rate in both years. A major factor contri buting to the reduced earnings growth at other large banks was the turnaround from sizable net gains on securities transactions in 1971 to net losses in 1972. □ Yields On Recently Offered Corporate Bonds A series of yields on recently offered corporate bonds has been developed as a companion series to the index of yields on newly issued corporate bonds (see B ulletin for September 1972). Monthly and quarterly data for 1965 to 1973 and weekly data for 1973 are shown in Table l . 1 Data for this series will be published in the statistical section of the B ulletin . The yield series on recently offered bonds relies on the procedures and the model underly ing the companion series of yields on newly issued bonds. That series is estimated for a standard bond, which is defined as a new, straight-debt, long-term (20 years or longer) utility issue, rated Aaa both by Moody’s In vestors Service, Inc., and by Standard and Poor’s, Inc., that carries 5-year call protection and is underwritten by a process of competitive bidding. New corporate debt issues with char acteristics other than those of the standard bond are included in determining the newly issued yield series by using a nonlinear regression model to calculate the basis-point values of the heter ogeneous characteristics. Details of the model, the estimation procedures, and a discussion of the results are presented in a Federal Reserve Staff Economic Study, “ Obtaining the Yield on a Standard Bond from a Sample of Bonds with Heterogeneous Characteristics,” by James L. xThis series was developed by James L. Kichline, P. Michael Laub, and Beryl Deck. Weekly data beginning January 1965 are available upon request from Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. 336 Kichline, P. Michael Laub, and Guy V. G. Stevens; a summary of this study appears on pages 327 and 328. There are several differences between the two yield series. First, bonds that meet the criteria for inclusion in the newly issued series are employed in the calculation of that series only in the week in which they are initially offered to investors; bonds in the recently offered series are the same as those in the newly issued series, but they are employed in calculating the series for each of the first 4 weeks after termination of underwriter price restrictions.2 Second, yields on bonds in the newly issued series are based on prices asked by underwriting syndicates; yields on recently offered bonds, on the other hand, are based on prices determined in the free market and hence approximate market clearing prices. Third, yields on recently offered bonds are derived from quotes at the close of trading on Friday, while new issues may be offered on any day of the week. Fourth, no adjustment is made for type of underwriting in the recently offered series because such differences as may exist due to the underwriting process are as sumed not to exist in market-determined yields. 2During the 4-week interval trading is generally active and reliable quotes are usually available. In addition, coupons on the bonds in the series do not differ appre ciably from coupons on bonds in the new issue market. In contrast, bonds outstanding for significantly longer periods of time often have thin markets and may carry noncurrent coupons. Both of these factors influence the yield and often make seasoned yield indices less sensi tive to current market developments and, at times, less representative of the underlying market situation. TABLE 1 RECENTLY OFFERED AAA UTILITY BONDS In per cent 1965 1966 1967 1968 1969 1970 1971 1972 1973 Period Monthly and quarterly , 1965-73 Jan................................................. Feb................................................ Mar............................................... Apr................................................ May ............................................ June ............................................ July ............................................ Aug............................................... Sept............................................... Oct................................................ N ov............................................... D ec............................................... 4.44 4.42 4.41 4.37 4.43 4.44 4.51 4.56 4.59 4.54 4.69 4.74 4.78 4.93 5.16 5.08 5.22 5.36 5.43 5.71 5.74 5.73 5.75 5.64 5.26 5.18 5.32 5.42 5.66 5.81 5.88 5.96 5.96 6.15 6.36 6.49 6.31 6.25 6.40 6.46 6.63 6.68 6.51 6.26 6.27 6.48 6.52 6.84 6.90 7.02 7.21 7.16 7.15 7.65 7.66 7.66 8.05 8.17 8.38 8.67 8.64 8.54 8.60 8.71 8.98 9.15 8.87 8.85 8.69 8.70 8.59 8.18 7.61 7.43 7.61 7.52 7.91 7.98 8.00 7.89 7.64 7.61 7.42 7.29 7.24 7.34 7.27 7.43 7.42 7.38 7.39 7.38 7.42 7.41 7.21 7.21 7.37 7.42 7.54 7.47 Q i Q2 Q3 Q4 4.42 4.41 4.55 4.66 4.96 5.22 5.63 5.71 5.25 5.63 5.93 6.33 6.32 6.59 6.35 6.61 7.04 7.32 7.79 8.41 8.59 8.95 8.80 8.49 7.55 7.80 7.84 7.44 7.28 7.41 7.40 7.28 7.44 ............................................ ............................................ ............................................ ............................................ Weekly, 1973 Jan. 5 12 19 26 7.28 7.37 7.38 7.43 Feb. 2 9 16 23 7.44 7.45 7.41 7.38 Mar. 2 9 16 23 30 7.47 7.50 7.59 7.59 7.50 Apr. 6 ...... 13 20 27 7.50 7.47 7.52 7.42 May 4 ............ 7.42 337 The Structure of Reserve Requirements It is a pleasure for me, both as a citizen and as a Government official, to join in the deliber ations of this Council. We share many common objectives and we face common problems. Of course, our views have not always agreed in the past, and I doubt if the future can or will be entirely different. It is important, never theless, that we make a conscientious effort to understand one another’s perceptions of the problems we face. If we do so, we will generally find a path to fair and constructive solutions. One gratifying demonstration of that fact has taken place in recent weeks. The Committee on Interest and Dividends recently issued guide lines on the so-called “ dual prime rate.” In response to my invitation, bankers from all over the country met with the committee and its staff to ponder the difficulties surrounding the prime rate in the current environment and to seek a solution that could best serve the public interest. I am especially grateful to two of your leaders, Eugene Adams and Rex Morthland, for giving so generously of their time and wisdom to make the lending rate guidelines fair and workable. And I also want to note that the banking industry has acted prudently in complying with the com mittee’s request to move gradually and cau tiously in adjusting the prime loan rate for large businesses. Such a moderate response adds to national confidence in the public responsibility of banking leaders. Today, however, I shall say no more of the Committee on Interest and Dividends, but turn instead to my responsibilities as Chairman of the Federal Reserve Board. You and I have a number of pressing problems demanding our immediate attention. But it is also essential that we focus on longer-range issues from time to time. I want to discuss with you this morning N o t e . — Address by Arthur F. Burns, Chairman, Board of Governors of the Federal Reserve System, before the Governing Council Spring Meeting, Ameri can Bankers Association, White Sulphur Springs, West Virginia, April 26, 1973. one of those issues— namely, the structure of reserve requirements. This is a subject of substantial interest to the managers of commercial banks. It is also a matter of considerable importance to those of us concerned with the Nation’s economic and financial policy. For reserve requirements can influence in fundamental ways the effectiveness of monetary policy, the cost of financial inter mediation, and the allocation of savings among competing financial institutions. Let me begin by considering the role and purpose of reserve requirements in the func tioning of monetary and credit policies. Before the Federal Reserve System was founded, reserve requirements were imposed by legislation at the national and State levels as a means of protecting bank liquidity. That phi losophy was retained in the original structure of reserve requirements established for Federal Reserve member banks. Higher requirements were set for reserve city banks than for country members, and still higher requirements were imposed on central reserve city banks. Vestiges of that initial structure remain even today. Required reserves, however, are not really an important source of bank liquidity. The reserves required to back deposits cannot be withdrawn to finance a rise in loan demand, and they can supply only a small portion of the funds needed to accommodate deposit losses. The true and basic function of reserve requirements is not to provide liquidity, but to permit the Federal Reserve to control the supply of money and credit so that monetary policy can effectively promote our national economic objectives. To achieve good management over the supply of money and credit, reserve requirements must be met by holding assets whose aggregate vol ume is under the control of the Federal Reserve. Whatever their role may be in protecting bank liquidity, the reserve requirements set by the various States do not meet this test. This is a serious defect, since the principal reason for 339 3 40 reserve requirements is their contribution to effective monetary policy. Judged by this criterion, the present structure of reserve requirements leaves much to be de sired. Reforms are needed to increase the preci sion and the certainty with which the supply of money and credit can be controlled. Reforms are needed to permit more variation in reserve requirements as an instrument of monetary pol icy. Reforms are also needed to distribute the burden of monetary controls more equitably among the financial institutions that participate in the payments mechanism. The Federal Reserve Board has been con cerned for some time with inequities in the structure of reserve requirements. Last No vember, we finally used our authority under Regulation D to carry out substantial improve ments in the structure of reserves that are re quired to be held against the demand deposits of member banks. As you know, the Federal Reserve Act speci fies that the Board must distinguish between reserve city banks and other members in the establishment of reserve requirements. Until November 1972, the principal determinant of a bank’s reserve status was its geographic loca tion. Banks in principal financial centers were generally classified as reserve city banks; those in other locations fell into the country member category. A bank could, however, have its classification changed by appealing for special treatment based on the nature of its banking business. With the passage of time, this system of reserve classification became increasingly out moded and inequitable. Some large banks in cities of substantial size enjoyed the lower re serve requirement on demand deposits applica ble to country members. At the same time, there were some small banks in major financial centers that had to carry the higher reserve requirement imposed on reserve city members. Over the years, exceptions had been granted in so many cases— each of them probably justified but different from most others— that the princi ples underlying the reserve classification of member banks could no longer be readily dis cerned. The Board moved last year to eliminate these capricious elements in reserve classification by FEDERAL RESERVE BULLETIN □ MAY 1973 introducing a graduated reserve requirement— that is, by relating the reserve against demand deposits of each bank to the size of the bank. Under the new system, all member banks of a given size, whatever their location, are subject to identical reserve requirements. This reform was a major step forward in the creation of a more rational and equitable struc ture of reserve requirements. Yet, much more remains to be done. One of the principal steps needed is to apply equivalent reserve requirements to member and nonmember banks. At present, nonmember banks are not required to hold reserves in the form of deposits at the Federal Reserve Banks, as member banks do. In many States, percentage reserve require ments for nonmember banks are comparable to those for Federal Reserve members. However, the reserves required of nonmember banks usually may be carried as correspondent bal ances, or even in the form of Government securities. When reserves are held as corre spondent balances at a member bank, that bank is of course required to support these balances with reserves that consist either of vault cash or cash at the Federal Reserve. But in such a case the size of the cash reserve held by the member bank is quite small relative to the initial deposit at the nonmember bank. The consequence of these differential reserve requirements is that shifts of deposits between member and nonmember banks alter the quan tity of deposits at all commercial banks that can be supported by a given volume of bank re serves. Thus, the links between bank reserves, on the one hand, and bank credit and the money supply, on the other, are loosened, and the Federal Reserve’s control over the monetary aggregates becomes less precise than it can or should be. The magnitude of this problem is difficult to assess, since nonmember banks submit statisti cal reports to supervisory authorities infre quently. Annual data, however, suggest a sub stantial variability in the relative growth rates of member and nonmember banks. Over the past decade, increases in the volume of checking deposits at nonmember banks accounted for around 40 per cent of the total rise in checking deposits. But the proportion was as low as STRUCTURE OF RESERVE REQUIREMENTS one-tenth in 1962 and as high as three-fourths in 1969. Variations of this magnitude add to uncertainty about the effects of open market operations on bank credit and deposits, on the cost and availability of loanable funds, and hence also on the level of aggregate demand for goods and services. This source of imprecision in monetary con trol has become more worrisome as the propor tion of bank deposits held at member banks has declined. In 1945, 86 per cent of total commer cial bank deposits was held by member banks. The ratio had fallen to 80 per cent by 1970 and to 78 per cent by the end of last year. In part, this trend reflects the relatively rapid growth of population in areas served by non member banks, particularly suburban areas. The major causal factor, however, is the competitive disadvantage that is imposed on member banks by requiring them to hold reserves against de posits in the form of vault cash or as deposits at the Federal Reserve. For nonmember banks, required reserves are, in effect, earning assets even when they are held as demand balances with other commercial banks, since these bal ances normally also serve as a form of payment for services rendered by city correspondents. One consequence of this inequity is an incen tive for member banks to withdraw from the Federal Reserve System, or for newly chartered State banks to avoid Federal Reserve member ship. Since 1960, about 700 banks have left the System through withdrawal or mergers. Just over 100 State-chartered banks have elected to join the System since 1960; nearly 1,500 others receiving new charters chose to remain outside the System. And the trend continues. During 1972, five banks with deposits of $100 million or more withdrew from Federal Reserve membership. Of the 212 new commercial banks receiving State charters last year, only 13 elected Federal Re serve membership. Over the years, efforts have been made to reduce the competitive disadvantage faced by member banks and thereby make System mem bership more attractive. Permission to count vault cash in meeting reserve requirements clearly improved matters. The changes made in Regulation D last November were also helpful, because they reduced reserve requirements 341 against demand deposits— particularly for small member banks that compete actively with non members. Recently, a seasonal borrowing priv ilege at the discount window was established for member banks that have insufficient access to the national money markets. This, too, should make membership more attractive. Never theless, there are limits to measures of this kind that can be taken under existing legislation. The erosion of membership in the Federal Reserve System is therefore a serious problem. It reduces the precision of monetary control, as I have already noted. It may, in time, also weaken public confidence in the Nation’s central bank and in its ability to maintain a stable currency and a sound banking system. And it has already reduced the potential for using changes in reserve requirements as an effective instrument of monetary policy. When a large and increasing proportion of total bank deposits is left untouched by changes in the reserve requirements prescribed by the Board, that alone is a fact of some significance. The greater loss, however, arises because the Board must use changes in reserve requirements sparingly as an instrument of monetary policy, since an increase in required reserves would worsen the competi tive disadvantage of member banks and thereby threaten a further erosion of membership. This inhibition has been unfortunate, for there have been times v, hen .the prompt and pervasive impact of a higher reserve requirement would have been the best way to signal that monetary policy is moving toward added restraint on the availability of money and credit. In view of the divergence in reserve requirements between member and nonmember banks, the Federal Reserve has sometimes had to turn to other, perhaps less effective, measures to achieve its objectives. These considerations argue persuasively, I believe, that reserve requirements on demand deposits at nonmember banks should be the same as those faced by Federal Reserve members. Continuation of the present state of affairs is inequitable, and it also weakens mon etary control. These difficulties will become more acute in the years to come if corrective legislative action is not forthcoming. The proposal to treat member and nonmember banks alike for reserve purposes is not new. Its 342 substance was em bodied in the recom mendations of a congressional committee chaired by Senator Douglas in 1950, repeated in 1952 in the recommendations of a congres sional committee chaired by Congressman Patman, endorsed by the Commission on Money and Credit in 1961, reaffirmed by the President’s Committee on Financial Institutions in 1963, and restated again in the 1971 report of the President’s Commission on Financial Structure and Regulation. Since 1964, the Federal Re serve has repeatedly urged the Congress to bring all insured commercial banks under the same reserve requirements, and to provide all these banks with equal access to the discount window. I am aware that this proposal is not viewed with favor by many segments of the banking community, and that is the major reason why this needed reform has been delayed. The pro posal would be more palatable to bankers if some part of the Board’s reserve requirement against demand deposits could be held in the form of an earning asset, such as U.S. Govern ment securities. I do not want to rule out that possibility categorically. Simple honesty, how ever, compels me to state that, however attrac tive reserve requirements in that form may be from the standpoint of bank earnings, they can not serve a useful function in monetary man agement. As I noted earlier, satisfactory control over the supply of money and credit requires that bank reserves be held in the form of assets whose aggregate volume is directly controlled by the Federal Reserve. The principle that underlies the Board’s rec ommendation is simple and straightforward— namely, that equivalent reserve requirements should apply to all deposits that effectively serve as a part of the public’s money balances. Recent efforts of nonbank depositary institutions to evolve new modes of money transfer make adoption of this principle a matter of some urgency. If legislative action is delayed, we may soon find a much larger share of money transfers taking place at institutions outside the reach of the Board’s reserve requirements. As you know, participation in third-party transfers by nonbank financial institutions has already commenced. In Massachusetts and New Hampshire, mutual savings banks have begun to offer depositors an interest-bearing account FEDERAL RESERVE BULLETIN □ MAY 1973 subject to a negotiable order of withdrawal— a “ NOW account” — that resembles closely an interest-bearing checking account. In Califor nia, savings and loan associations are seeking direct access to an electronic money transfer system operated by California banks. Access to the system would enable these associations to charge and credit the savings accounts of their customers in much the same way that checking deposits are handled at commercial banks. Other forms of third-party transfers are likely to spring up here and there. The Board believes, and has so indicated in testimony to the Congress, that Federal regula tion should permit developments such as these to flourish, so that the range of services of depositary institutions to American families may be extended. The Board believes, however, that present trends could have significant adverse effects on monetary control unless reserve re quirements established by the Federal Reserve are applied to all deposit accounts involving money-transfer services. Failure to do so would also have damaging effects on competitive rela tions between commercial banks and nonbank thrift institutions. Universal application of reserve requirements to all deposits providing money-transfer services need not mean a uniform percentage require ment on all these deposits. There may be a reasonable basis for lower reserve requirements on savings accounts with third-party transfer privileges than for deposits that carry fullchecking-account powers. There may also be a reasonable basis for retaining the principle of reserve requirements graduated by size of the depositary institution. Lack of uniformity of reserve requirements on similar deposits does, however, pose potential problems for monetary control. There are other aspects of present reserve requirements that also deserve careful and con tinuing review in the light of our evolving financial structure. The appropriateness of reserve requirements on commercial bank time and savings deposits has been a subject of debate over the years. It has been argued that cash reserves against time deposits are not essential for purposes of mone tary control and therefore should be abolished as an unnecessary impediment to interme STRUCTURE OF RESERVE REQUIREMENTS diation. Yet, some observers take the position that reserve requirements for commercial bank time deposits should be increased to the same level as the requirements for demand deposits, so that shifts of funds between the two deposit classes would not alter the relationship of bank reserves to bank credit and the money supply. The merits of these conflicting arguments are difficult to evaluate. At present, there is no convincing evidence of frequent or large-scale shifts of funds between demand and time de posits of the sort that could be disruptive to financial markets and to the management of aggregate demand. Still, the potential for such shifts may be increasing with the proliferation of new financial services that facilitate transfers from one type of deposit to another. Removal of reserve requirements against time deposits would, therefore, seem unwise at this time. And in any event, elimination of statutory authority to impose reserve requirements against time and savings deposits would take away a weapon of monetary policy that is potentially useful for containing increases in bank credit at a time when inflationary pressures are already strong and threaten to become still stronger. As long as commercial banks are required to hold cash reserves against time and savings deposits, questions will persist about the desira bility of similar requirements against savings accounts at nonbank thrift institutions. At present, extension of reserve requirements to savings accounts at nonbank intermediaries does not appear to be needed for reasons of monetary control. There have been times when shifts of funds between banks and nonbank interme diaries have had a disturbing influence on the mortgage market. But those shifts have not produced serious problems for monetary con trol, and they would not have been prevented by comparable reserve requirements at the two classes of institutions. From the viewpoint of equity, the case for equal reserve requirements on time and savings deposits at all financial institutions is stronger. Even on this ground, however, it should be kept in mind that the diversified services that com mercial banks offer their customers give them 343 an advantage in bidding for time and savings deposits— an advantage that probably still re mains after the costs of holding cash reserves are taken into account. However, if recent trends continue, the in creasing provision of money-transfer services by nonbank thrift institutions will blur the distinc tion between commercial banks and nonbank intermediaries, just as it blurs the distinction between checking and savings accounts. As nonbank depositary institutions become more like commercial banks, the basis for differences in reserve requirements will be weakened and so too will the justification for differences in tax and regulatory treatment. Public policy must take account of the com petitive forces that are altering the structure of our Nation’s depositary institutions and the character of the services they supply. The need for legislation authorizing identical reserve re quirements on demand deposits at member and nonmember banks is of long standing. The time for bringing NOW accounts and any other de posits offering money-transfer services under the Board’s reserve requirements is clearly at hand. And if the distinctions between commer cial banks and nonbank financial institutions gradually fade away, regulatory authority to equalize the treatment of time and savings de posits for reserve purposes will also be needed. Enabling legislation to accomplish these ends should allow flexibility in implementation. The transition to a new and more appropriate system of reserve requirements should be designed so as to minimize the adjustment problems of indi vidual institutions, and also to permit the regu latory authorities to monitor the effects of changing reserve requirements on financial markets and on economic activity. Abrupt changes in the structure of reserve requirements are unnecessary and would probably be unwise. The need, as I see it, is for a gradual transition to a reserve structure that will accomplish two objectives: first, ensure adequate control over the supply of money and credit in the years to come; and second, establish an equitable shar ing among financial institutions of the costs of monetary control. □ Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve B u lletin . The record for each meeting includes the votes on the policy decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York— the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the B ulletin beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. The record for the first meeting held in 1973 was published in the B ulletin for April, pages 286-92. The record for the meeting held on February 13, 1973, follows: 345 346 FEDERAL RESERVE BULLETIN □ MAY 1973 M E E T IN G H E L D O N F E B R U A R Y 1 3 , 1 9 7 3 C u r r e n t e c o n o m i c p o lic y d ir e c tiv e Estimates of the Commerce Department indicated that real output of goods and services had grown at an annual rate of 8.5 per cent in the fourth quarter of 1972, and growth appeared to be continuing at a substantial, although less rapid, rate in the first quarter of 1973. Staff projections suggested that real growth in the second quarter would remain close to the first-quarter rate. In January retail sales rose sharply, according to the advance report, after having increased considerably more in December than had been indicated by earlier data. Industrial production continued to expand— reflecting gains in consumer goods and business equip ment— and nonfarm payroll employment rose further; however, the pace of expansion in output and employment in both December and January was less rapid than over the four preceding months. The unemployment rate declined slightly further to 5.0 per cent. Labor costs per unit of output in the private nonfarm economy— which had changed little in the second and third quarters of 1972— turned up in the fourth quarter as the advance in output per manhour slowed and the rise in wage rates accelerated. Average hourly earnings of production workers continued to rise at a relatively rapid rate in January. In December the rise in over-all consumer prices slowed; while retail prices of nonfood commodities and of services advanced at a faster pace than earlier in the year, average retail prices of foods were about stable. In wholesale markets, however, prices of meats, eggs, and some other foods and foodstuffs rose sharply in December, and the rise continued in January. The latest staff projection of real growth in the first half of 1973 was about unchanged from that of 4 weeks earlier, but now the expected rise in average prices was somewhat larger, in part because of the substantial increases that had already occurred in prices of foods and foodstuffs. It was still expected that expansion in consumption expenditures, business fixed investment, and State and local government purchases of goods and services would remain strong and that business inventory investment would in crease further. It was also anticipated that outlays for residential construction would level off and then turn down. RECORD OF POLICY ACTIONS OF FOMC In foreign exchange markets the relative calm that had prevailed for a number of months was shattered in late January by a series of developments, including a decision by the Italian Government to create a dual market for the lira in response to capital outflows, a decision by the Swiss Government to float the franc in response to large capital inflows, and release of U.S. foreign trade statistics revealing that the deficit— which had worsened in November after having improved gradually from June through October— had re mained large in December. Heavy speculative flows out of dollars into the German mark and some other currencies developed, cul minating in very large purchases of dollars by many central banks in the process of maintaining their exchange rates within the internationally agreed limits. On February 12, after consultations with other major countries, the Secretary of the Treasury announced that the United States would devalue the dollar by 10 per cent. At U.S. commercial banks, credit demands— which had eased in December—expanded substantially in January in all major in dustrial categories and in all regions of the country, and outstanding business loans rose at a record pace. Real estate and consumer loans continued to grow at rapid rates, while bank holdings of securities increased little. In association with the strong demand for loans and further advances in market interest rates, some banks announced increases in their prime rates from 6 to 6 lA per cent at the beginning of February, but in cooperation with the Govern ment’s stabilization program, the banks rescinded the increases pending evaluation of data on costs and earnings. The narrowly defined money stock ( M x) x changed little in January after having increased sharply in December, and growth over the 2 months combined was at an annual rate of about 6.5 per cent— about the same as the rate over the whole 6-month period from July 1972 to January 1973.2 Part of the recent fluctuation in the growth rate was attributable to a temporary increase in demand deposits of State and local governments in association with initial distributions of funds under the Federal revenue-sharing 1 Private demand deposits plus currency in circulation. 2 Growth rates are calculated on the basis of the daily-average level in the last month of the period relative to that in the last month preceding the period. M oreover, they are based on revised series for the monetary aggregates, which were released to the public in early February. 347 348 FEDERAL RESERVE BULLETIN □ MAY 1973 program and subsequent shifts of some of these funds into earning assets, including time deposits. Inflows of time and savings deposits other than large-denomination CD’s increased from December to January, moderating the deceleration in growth in the more broadly defined money stock (M2).3 Growth in M2 over both the Decem ber-January and the July-January periods was at an annual rate of about 9.5 per cent. Inflows of savings funds to nonbank thrift institutions also rose substantially from December to January. Contract interest rates on conventional mortgages apparently changed little in January and yields in the secondary market for Federally insured mortgages also remained stable. On January 31 the Treasury announced that in its mid-February financing it would offer holders of maturing notes an opportunity to exchange their holdings for a 3y2-year, 6 V2 per cent note priced to yield about 6.60 per cent and that it would auction about $1 billion of 63/4-year, 6% per cent notes. As had been expected in the market, a relatively large part— $2.2 billion, or 47 per cent— of the $4.8 billion of maturing notes held by the public was redeemed for cash. System open market operations since the January 16 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions that would support slower growth in monetary aggregates over the months ahead than the rates recorded over the second half of 1972. Operations had been directed toward fostering growth in reserves available to support private nonbank deposits (RPD’s) at an annual rate in a range of 4.5 to 10.5 per cent in the January-February period, while avoiding marked changes in money market conditions and taking account of Treasury financing operations. The System had acted early in the inter-meeting period— prior to announcement of the terms of the Treasury financing— to restrain expansion in reserves provided through open market operations, and money market conditions had firmed. The Federal funds rate, which had been about 5% per cent in the days before the January meeting, rose to about 6% per cent in the latter part of the month and then fluctuated around that level. Member bank borrowings 3 M t plus com mercial bank time and savings deposits other than large-denomination C D ’s. RECORD OF POLICY ACTIONS OF FOMC averaged about $1,235 million in the 4 weeks ending February 7, compared with about $1,200 million in the preceding 4 weeks. At the time of this meeting it appeared that in the January-February period RPD’s would grow at a rate near the middle of the specified range. Market interest rates had continued to rise since the Committee’s January meeting, reflecting the further tightening in money market conditions, widespread expectations of vigorous economic expan sion, and uncertainty about the effectiveness of Phase III of the economic stabilization program. Short-term rates had risen consid erably. In early February, however, the market for Treasury bills was strengthened by actual and expected purchases of bills by foreign central banks in association with the speculative outflows from dollars into other currencies. On February 9, the last market day before this meeting, the rate on 3-month bills was 5.44 per cent, down from 5.76 per cent on February 1 but up from 5.27 per cent on the day before the January meeting. The rise in interest rates was more moderate for long-term than for most short-term securities. The volume of new public offerings of corporate bonds, which had been reduced in December by the holidays, failed to rebound in January and appeared likely to remain at a reduced level in February. The volume of new State and local government bonds also changed little in January, and it appeared likely to decline in February. The Committee agreed that the economic situation called for growth in the monetary aggregates over the months ahead at somewhat slower rates than had occurred on average in the past 6 months. The members took note of a staff analysis suggesting that the sharp further advance in short-term interest rates that had occurred in recent months would probably retard growth in the demand for money over the months ahead. The analysis also suggested that in the February-March period the Committee’s objectives for monetary growth might be fostered by pursuing growth in RPD’s at an annual rate within a range of 0.5 to 2.5 per cent and that attainment of RPD growth in that range probably would be associated with some additional firming of money market conditions and some upward pressure on long-term interest rates. The Committee concluded that active reserve-supplying opera tions should be avoided unless RPD’s in the February-March period 349 350 FEDERAL RESERVE BULLETIN □ MAY 1973 appeared to be declining at an annual rate of more than 2.5 per cent. Specifically, the members decided that operations should be directed at fostering RPD growth during that period within a range of —2.5 to + 2.5 per cent, while continuing to avoid marked changes in money market conditions. They also agreed that in the conduct of operations account should be taken of possible credit market developments and international developments, and that allowance should be made in operations if growth in the monetary aggregates appeared to be deviating from an acceptable range. It was understood that the Chairman might consider calling upon the Committee to appraise the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objec tives and constraints. The following current economic policy directive was issued to the Federal Reserve Bank of New York: T h e in f o rm a tio n re v ie w e d a t th is m e e tin g s u g g e s ts c o n tin u e d s u b s ta n tia l g r o w th in re a l o u tp u t o f g o o d s a n d s e r v ic e s in th e c u rre n t q u a r te r , a lth o u g h a t a ra te le ss ra p id th a n in th e f o u rth q u a r te r o f 1 9 7 2 . T h e u n e m p lo y m e n t ra te h a s d e c lin e d s lig h tly fu r th e r . In re c e n t m o n th s w a g e ra te s h a v e in c re a s e d at a re la tiv e ly ra p id p a c e , a n d u n it la b o r c o s ts tu r n e d u p in th e fo u r th q u a r te r o f 1 9 7 2 . T h e rise in c o n s u m e r p ric e s s lo w e d in D e c e m b e r w h e n re ta il p ric e s o f fo o d s c h a n g e d little , b u t p ric e s o f fo o d s a n d fo o d s tu f fs a t e a r lie r s ta g e s o f d is tr ib u tio n ro s e sh a rp ly in b o th D e c e m b e r a n d J a n u a ry . T h e e x c e s s o f U .S . m e rc h a n d is e im p o rts o v e r e x p o rts r e m a in e d la rg e in D e c e m b e r . H e a v y s p e c u la tiv e m o v e m e n ts o u t o f d o lla r s in to G e r m a n m a rk s a n d s o m e o th e r c u r re n c ie s d e v e lo p e d in la te J a n u a ry a n d e a r ly F e b r u a ry . O n F e b ru a ry 12 th e G o v e r n m e n t a n n o u n c e d th a t th e U n ite d S ta te s w o u ld d e v a lu e th e d o lla r b y 10 p e r c e n t. T h e n a rro w ly d e fin e d m o n e y sto c k c h a n g e d little in J a n u a r y a fte r h a v in g in c re a s e d s h a rp ly in D e c e m b e r , a n d g r o w th o v e r th e 2 m o n th s c o m b in e d w a s a t an a v e r a g e a n n u a l ra te o f a b o u t 6 V2 p e r c e n t. G r o w th in th e m o re b ro a d ly d e fin e d m o n e y s to c k s lo w e d le s s a b r u p tly fro m D e c e m b e r to J a n u a ry as in flo w s o f c o n s u m e r - ty p e tim e a n d s a v in g s d e p o s its to b a n k s a c c e le r a te d . A s h a r p a n d p e r v a s iv e in c re a s e h a s ta k e n p la c e in b a n k lo a n s to b u s in e s s e s . In re c e n t w e e k s m a r k e t in te re s t ra te s g e n e ra lly h a v e r is e n f u r th e r , w ith i n c re a s e s s u b s ta n tia l fo r s h o r t-te rm ra te s a n d re la tiv e ly m o d e ra te fo r lo n g - te rm ra te s . M o s t r e c e n tly , h o w e v e r , T r e a s u r y b ill ra te s h a v e m o v e d b a c k d o w n u n d e r th e in flu e n c e o f fo r e ig n o fficial b u y in g . RECORD OF POLICY ACTIONS OF FOMC In lig h t o f th e fo r e g o in g d e v e lo p m e n ts , it is th e p o lic y o f th e F e d e ra l O p e n M a r k e t C o m m itte e to fo s te r fin a n c ia l c o n d itio n s c o n s o n a n t w ith th e a im s o f th e e c o n o m ic s ta b iliz a tio n p r o g r a m , in c lu d in g f u r th e r a b a te m e n t o f in fla tio n a ry p r e s s u r e s , s u s ta in a b le g r o w th in re a l o u tp u t a n d e m p lo y m e n t, a n d p ro g re s s to w a rd e q u ilib riu m in th e c o u n tr y ’s b a la n c e o f p a y m e n ts . T o im p le m e n t th is p o lic y , w h ile ta k in g a c c o u n t o f p o s s ib le d o m e s tic c r e d it m a rk e t a n d in te r n a tio n a l d e v e lo p m e n ts , th e C o m m itte e s e e k s to a c h ie v e b a n k re s e rv e a n d m o n e y m a rk e t c o n d itio n s th a t w ill s u p p o rt s o m e w h a t s lo w e r g ro w th in m o n e ta ry a g g re g a te s o v e r th e m o n th s a h e a d th a n o c c u rre d o n a v e ra g e in th e p a s t 6 m o n th s . V o te s fo r th is a c tio n : M e s s rs . B u r n s , H a y e s , B r im m e r , B u c h e r , C o ld w e ll, E a s tb u r n , M a c L a u r y , M itc h e ll, R o b e r ts o n , S h e e h a n , a n d W in n . V o te s a g a in s t th is a c tio n : N o n e . A b s e n t a n d n o t v o tin g : M r. D a a n e . Developments subsequent to the meeting made it appear that RPD’s would grow in the February-March period at an annual rate in excess of 2.5 per cent, even though money market conditions had firmed and the Federal funds rate had averaged close to 6 % per cent for two successive weeks. On March 1, 1973, the members agreed that the weekly average Federal funds rate should be permitted to rise somewhat further if necessary to limit growth in RPD’s. 351 Law Department S tatutes, regulations, interpretations, and decisions EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS T h e B o a rd h a s re v is e d R e g u la tio n A , “ A d v a n c e s a n d D is c o u n ts b y F e d e ra l R e s e rv e B a n k s ” , e f fe c tiv e A p ril 19, 197 3 . T h e h e a d in g o f P a rt 201 is c h a n g e d to re a d “ E x te n s io n s o f C r e d it b y F e d e ra l R e s e rv e B a n k s ” , a n d §§ 2 0 1 .0 th r o u g h 2 0 1 .6 a re re v is e d to re a d as se t fo rth b e lo w . S E C T IO N 2 0 1 .1 — A U T H O R I T Y A N D S C O P E T h is P a rt is is s u e d u n d e r s e c tio n 13 a n d o th e r p ro v is io n s o f th e F e d e ra l R e s e r v e A c t a n d re la te s to e x te n s io n s o f c r e d it b y F e d e ra l R e s e rv e B a n k s . S E C T IO N 2 0 1 .2 — G E N E R A L P R IN C I P L E S (a ) A c c o m m o d a t i o n o f c r e d i t n e e d s o f i n d i v i d u a l b a n k s . E x te n d in g c re d it to m e m b e r b a n k s to a c c o m m o d a te c o m m e rc e , in d u s tr y , a n d a g r ic u l tu re is a p rin c ip a l fu n c tio n o f R e s e rv e B a n k s . W h ile o p e n m a r k e t o p e r a tio n s a n d c h a n g e s in m e m b e r b a n k r e s e r v e r e q u ir e m e n ts a re im p o r ta n t m e a n s o f a f fe c tin g th e o v e ra ll s u p p ly o f b a n k re s e r v e s , th e le n d in g fu n c tio n o f th e R e s e rv e B a n k s is a n e ffe c tiv e m e th o d o f s u p p ly in g r e s e rv e s to m e e t th e p a r tic u la r n e e d s o f in d iv id u a l m e m b e r ban k s. (b ) E f f e c t o n o v e r a l l m o n e t a r y a n d c r e d i t c o n d i t i o n s . T h e le n d in g f u n c tio n s o f th e F e d e ra l R e s e rv e S y s te m a re c o n d u c te d w ith d u e r e g a rd to th e b a s ic o b je c tiv e s o f th e E m p lo y m e n t A c t o f 1 9 4 6 a n d th e m a in te n a n c e o f a s o u n d a n d o rd e rly fin a n c ia l s y s te m . T h e s e b a s ic o b je c tiv e s a re p r o m o te d b y in flu e n c in g th e o v e ra ll v o lu m e a n d c o s t o f c r e d it th ro u g h a c tio n s a ffe c tin g th e v o lu m e a n d c o s t o f r e s e rv e s to m e m b e r b a n k s . B o rr o w in g b y in d iv id u a l m e m b e r b a n k s , a t a ra te o f in te r e s t a d ju s te d fro m tim e to tim e in a c c o r d a n c e w ith g e n e ra l e c o n o m ic a n d m o n e y m a rk e t c o n d itio n s , h a s a d ir e c t im p a c t o n th e re s e r v e p o s itio n s o f th e b o r r o w in g b a n k s a n d th u s o n th e ir a b ility to m e e t th e n e e d s o f th e ir c u s to m e r s . H o w e v e r , th e e ffe c ts o f s u c h b o r r o w in g d o n o t re m a in lo c a liz e d b u t h a v e a n im p o rta n t b e a r in g o n o v e ra ll m o n e ta ry a n d c re d it c o n d itio n s . (c ) S h o r t - t e r m a d j u s t m e n t c r e d i t . F e d e ra l R e s e rv e c r e d it is a v a ila b le o n a s h o r t-te r m b a s is to a m e m b e r b a n k , u n d e r s u c h ru le s a s m a y b e p r e s c r ib e d , to s u c h e x te n t as m a y b e a p p r o p ria te to a s s is t su c h b a n k in m e e tin g te m p o r a r y r e q u ir e m e n ts fo r fu n d s o r to c u s h io n m o re p e r s is te n t o u tflo w s o f f u n d s p e n d in g a n o r d e rly a d ju s tm e n t o f th e b a n k ’s a s s e ts a n d lia b ilitie s . (d ) S e a s o n a l c r e d i t . F e d e ra l R e s e rv e c r e d it is a v a ila b le fo r lo n g e r p e r io d s to a s s is t a m e m b e r b a n k th a t la c k s r e a s o n a b ly r e lia b le a c c e s s to n a tio n a l m o n e y m a rk e ts in m e e tin g s e a s o n a l n e e d s fo r fu n d s a ris in g fro m a c o m b in a tio n o f e x p e c te d p a tte rn s o f m o v e m e n t in its d e p o s its a n d lo a n s . S u c h c r e d it w ill o r d in a rily b e lim ite d to th e a m o u n t b y w h ic h th e m e m b e r b a n k ’s s e a s o n a l n e e d s e x c e e d 5 p e r c e n t o f its a v e r a g e to ta l d e p o s its in th e p r e c e d in g c a le n d a r y e a r a n d w ill b e a v a ila b le if (1 ) th e m e m b e r b a n k h a s a rra n g e d in a d v a n c e fo r s u c h c r e d it fo r th e fu ll p e r io d , a s fa r a s p o s s i b le , fo r w h ic h th e c r e d it is e x p e c te d to b e r e q u ir e d , a n d (2 ) th e R e s e rv e B a n k is sa tis fie d th a t th e m e m b e r b a n k ’s q u a lif y in g n e e d f o r f u n d s is s e a so n a l a n d w ill p e r s is t fo r a t le a s t e ig h t c o n s e c u tiv e w e e k s . In m a k in g s u c h a r ra n g e m e n ts fo r s e a s o n a l c r e d it, a R e s e rv e B a n k m a y a g re e to e x te n d su c h c r e d it fo r a p e rio d o f u p to 9 0 d a y s , 1 s u b je c t to c o m p lia n c e w ith a p p lic a b le r e q u ir e m e n ts o f la w at th e tim e s u c h c r e d it is e x te n d e d . H o w e v e r , in th e e v e n t th a t a m e m b e r b a n k ’s s e a s o n a l n e e d s s h o u ld p e rs is t b e y o n d s u c h p e r io d , th e R e s e rv e B a n k w ill n o rm a lly b e p re p a r e d to e n te r ta in a r e q u e s t b y th e m e m b e r b a n k f o r f u r th e r c re d it e x te n s io n s u n d e r th e s e a s o n a l c r e d it a r ra n g e m e n t. (e ) E m e r g e n c y c r e d i t f o r m e m b e r b a n k s . F e d e ra l R e s e rv e c r e d it is a v a ila b le to a s s is t m e m b e r b a n k s in u n u s u a l o r e m e r g e n c y c ir c u m s ta n c e s s u c h as m a y r e s u lt fro m n a tio n a l, r e g io n a l, o r lo c a l d iffic u ltie s o r fro m e x c e p tio n a l c ir c u m s ta n c e s in v o lv in g o n ly a p a r tic u la r m e m b e r b a n k . 1 As provided in the law and in this Part, the maturity of advances to member banks is limited to 90 days, except as provided in § 201.3(b) of this Part. 353 FEDERAL RESERVE BULLETIN □ MAY 1973 354 (f) E m e r g e n c y c r e d i t f o r o t h e r s . F e d e ra l R e se rv e c r e d it is a v a ila b le to in d iv id u a ls , p a r tn e r s h ip s , a n d c o r p o ra tio n s th a t a re n o t m e m b e r b a n k s in e m e r g e n c y c ir c u m s ta n c e s in a c c o rd a n c e w ith § 2 0 1 .7 o f th is P a rt if, in th e ju d g m e n t o f th e R e s e rv e B a n k in v o lv e d , c re d it is n o t p r a c tic a b ly a v a ila b le fr o m o th e r s o u rc e s a n d fa ilu re to o b ta in su c h c r e d it w o u ld a d v e rs e ly a ffe c t th e e c o n o m y . (g) C r e d i t f o r c a p i t a l p u r p o s e s . F e d e ra l R e se rv e c re d it is n o t a s u b s titu te f o r c a p ita l a n d o r d in a r ily is n o t a v a ila b le fo r e x te n d e d p e rio d s . (h ) C o m p l i a n c e w i t h la w a n d r e g u l a t i o n . A ll c re d it e x te n d e d p u r s u a n t to th is P a rt m u s t c o m p ly w ith a p p lic a b le r e q u ir e m e n ts o f la w a n d o f th is P a rt. A m o n g o th e r th in g s , th e la w re q u ire s e a c h R e s e rv e B a n k (1 ) to k e e p its e lf in fo r m e d o f th e g e n e ra l c h a r a c te r a n d a m o u n t o f th e lo a n s a n d in v e s tm e n ts o f its m e m b e r b a n k s w ith a v ie w to a s c e r ta in in g w h e th e r u n d u e u s e is b e in g m a d e o f b a n k c re d it fo r th e s p e c u la tiv e c a r r y in g o f o r tra d in g in s e c u r itie s , re a l e s ta te , o r c o m m o d itie s o r fo r a n y o th e r p u rp o s e in c o n s is te n t w ith th e m a in te n a n c e o f s o u n d c r e d it c o n d itio n s a n d (2 ) to g iv e c o n s id e r a tio n to s u c h in f o r m a tio n in d e te r m in in g w h e th e r to e x te n d c r e d it. S E C T IO N 2 0 1 .3 — A D V A N C E S T O BANKS M EM BER (a ) A d v a n c e s o n o b l i g a t i o n s o r e lig ib le p a p e r . R e s e rv e B a n k s m a y m a k e a d v a n c e s to m e m b e r b a n k s fo r n o t m o re th a n 9 0 d a y s if s e c u re d b y o b lig a tio n s o r o th e r p a p e r e lig ib le u n d e r th e F e d e ra l R e s e rv e A c t fo r d is c o u n t o r p u r c h a s e b y R e s e rv e B a n k s . (b ) A d v a n c e s o n o t h e r s e c u r i t y . A R e s e rv e B a n k m a y m a k e a d v a n c e s to a m e m b e r b a n k fo r n o t m o re th a n f o u r m o n th s if s e c u re d to th e s a tis fa c tio n o f th e R e s e r v e B a n k , w h e th e r o r n o t s e c u re d in c o n f o rm ity w ith § 2 0 1 .3 ( a ) , b u t th e ra te o n su c h a d v a n c e s s h a ll b e at le a s t o n e - h a lf o f o n e p e r c e n t p e r a n n u m h ig h e r th a n th e ra te a p p lic a b le to a d v a n c e s m a d e u n d e r § 2 0 1 .3 ( a ) . S E C T IO N 2 0 1 .4 — D IS C O U N T S F O R M E M B E R BANKS If a R e s e rv e B a n k s h o u ld c o n c lu d e th a t a m e m b e r b a n k w o u ld b e b e tte r a c c o m m o d a te d b y th e d is c o u n t o f p a p e r th a n b y a n a d v a n c e o n th e s e c u rity th e r e o f , it m a y d is c o u n t f o r s u c h m e m b e r b a n k a n y p a p e r e n d o r s e d b y th e m e m b e r b a n k a n d m e e tin g th e fo llo w in g re q u ire m e n ts : (a) C o m m e r c i a l o r a g r i c u l t u r a l p a p e r . A n o te , d r a ft, o r b ill o f e x c h a n g e is s u e d o r d r a w n o r th e p ro c e e d s o f w h ic h h a v e b e e n o r a re to b e u se d (1 ) in p r o d u c in g , p u r c h a s in g , c a r r y in g , o r m a r k e t in g g o o d s in th e p ro c e s s o f p r o d u c tio n , m a n u f a c tu r e , o r d is tr ib u tio n , (2 ) fo r th e p u r c h a s e o f s e r v ic e s , (3) in m e e tin g c u r re n t o p e r a tin g e x p e n s e s o f a c o m m e rc ia l, a g r ic u ltu r a l, o r in d u s tria l b u s in e s s , o r (4 ) fo r th e p u r p o s e o f c a r r y in g o r tr a d in g in d ir e c t o b lig a tio n s o f th e U n ite d S ta te s ; p ro v id e d th a t (i) s u c h p a p e r h a s a p e r io d r e m a in in g to m a tu rity o f n o t m o re th a n 9 0 d a y s , e x c e p t th a t a g ric u ltu ra l p a p e r ( in c lu d in g p a p e r o f c o o p e r a tiv e m a r k e tin g a s s o c ia tio n s ) m a y h a v e a p e rio d r e m a in in g to m a tu r ity o f n o t m o re th a n n in e m o n th s a n d (ii) th e p ro c e e d s o f s u c h p a p e r h a v e n o t b e e n a n d a re n o t to b e u s e d m e r e ly fo r th e p u r p o s e o f in v e s tm e n t, s p e c u la tio n , o r d e a lin g in s to c k s , b o n d s , o r o th e r s u c h s e c u r itie s , e x c e p t d ir e c t o b l i g a tio n s o f th e U n ite d S ta te s . (b ) B a n k e r s ’ a c c e p t a n c e s . A b a n k e r ’s a c c e p t a n c e (1 ) a r is in g o u t o f a n im p o r ta tio n o r e x p o r ta tio n o r d o m e s tic s h ip m e n t o f g o o d s o r th e s to ra g e o f re a d ily m a r k e ta b le s ta p le s o r (2 ) d ra w n b y a b a n k in a fo re ig n c o u n tr y o r d e p e n d e n c y o r in s u la r p o s s e s s io n o f th e U n ite d S ta te s fo r th e p u r p o s e o f f u r n is h in g d o lla r e x c h a n g e ; p r o v id e d th a t su c h a c c e p ta n c e c o m p lie s w ith a p p lic a b le re q u ir e m e n ts o f s e c tio n 13 o f th e F e d e ra l R e s e rv e A c t. (c ) C o n s t r u c t i o n p a p e r . A n o te r e p re s e n tin g a lo a n m a d e to fin a n c e c o n s tr u c tio n o f a re s id e n tia l o r fa rm b u ild in g , w h e th e r o r n o t s e c u re d b y a lie n u p o n re a l e s ta te , w h ic h m a tu r e s n o t m o re th a n n in e m o n th s fro m th e d a te th e lo a n w a s m a d e a n d h a s a p e rio d r e m a in in g to m a tu r ity o f n o t m o re th a n 9 0 d a y s , if a c c o m p a n ie d b y a n a g r e e m e n t r e q u ir in g s o m e p e rs o n a c c e p ta b le to th e R e s e rv e B a n k to a d v a n c e th e fu ll a m o u n t o f th e lo a n u p o n c o m p l e tio n o f s u c h c o n s tr u c tio n . S E C T IO N 2 0 1 .5 — G E N E R A L R E Q U I R E M E N T S (a) I n f o r m a t i o n . A R e s e r v e B a n k sh a ll r e q u ire s u c h in fo rm a tio n as it d e e m s n e c e s s a ry to in s u re th a t p a p e r te n d e r e d as c o lla te ra l o r f o r d is c o u n t is a c c e p ta b le a n d m e e ts a n y p e r tin e n t e lig ib ility re q u ire m e n ts a n d th a t th e c re d it g r a n te d is u s e d c o n s is te n tly w ith th is P a rt. (b ) A m o u n t o f c o l l a t e r a l . A R e s e rv e B a n k sh a ll re q u ire o n ly s u c h a m o u n t o f c o lla te ra l as it d e e m s n e c e s s a ry o r a d v is a b le . (c) I n d i r e c t c r e d i t f o r n o n m e m b e r b a n k s . E x c e p t w ith th e p e r m is s io n o f th e B o a rd o f G o v e r n o r s , n o m e m b e r b a n k s h a ll a c t as th e m e d iu m o r a g e n t o f a n o n m e m b e r b a n k (o th e r th a n a F e d e ra l I n te r m e d ia te C r e d it b a n k ) in r e c e iv in g c re d it fro m a R e s e rv e B a n k a n d , in th e a b s e n c e LAW DEPARTMENT o f su c h p e r m is s io n , a m e m b e r b a n k a p p ly in g fo r c re d it sh a ll b e d e e m e d to re p re s e n t a n d g u a ra n te e th a t it is n o t so a c tin g . (d ) L i m i t a t i o n a s t o o n e o b l i g o r . E x c e p t as to c re d it g r a n te d u n d e r § 2 0 1 .3 ( b ) , a m e m b e r b a n k a p p ly in g fo r c r e d it s h a ll b e d e e m e d to c e rtify o r g u a ra n te e th a t as lo n g a s th e c re d it is o u ts ta n d in g n o o b lig o r o n p a p e r te n d e re d a s c o lla te ra l o r fo r d is c o u n t w ill b e in d e b te d to it in a n a m o u n t e x c e e d in g th e lim ita tio n s in s e c tio n 5 2 0 0 o f th e R e v is e d S ta tu te s (1 2 U .S .C . § 8 4 ) , w h ic h fo r th is p u r p o s e s h a ll b e d e e m e d to a p p ly to S ta te m e m b e r as w e ll as n a tio n a l b a n k s . S E C T IO N 2 0 1 .6 — F E D E R A L I N T E R M E D I A T E C R E D IT B A N K S A R e s e r v e B a n k m a y d is c o u n t fo r a n y F e d e ra l In te r m e d ia te C r e d it b a n k (1 ) a g r ic u ltu ra l p a p e r , o r (2 ) n o te s p a y a b le to a n d b e a r in g th e e n d o r s e m e n t o f s u c h F e d e r a l In te r m e d ia te C re d it b a n k c o v e r in g lo a n s o r a d v a n c e s m a d e u n d e r s u b s e c tio n s (a ) a n d (b ) o f § 2 .3 o f th e F a rm C r e d it A c t o f 1971 (1 2 U .S .C . § 2 0 7 4 ) w h ic h a re s e c u re d b y p a p e r e li g i b le fo r d is c o u n t b y R e s e rv e B a n k s . A n y p a p e r so d is c o u n te d s h a ll n o t h a v e a p e r io d r e m a in in g to m a tu r ity o f m o re th a n n in e m o n th s o r b e a r th e e n d o r s e m e n t o f a n o n m e m b e r S ta te b a n k . S E C T I O N 2 0 1 .7 — E M E R G E N C Y C R E D I T F O R OTHERS In e m e r g e n c y c ir c u m s ta n c e s a R e s e rv e B a n k m a y e x te n d c re d it fo r p e rio d s o f n o t m o re th a n 9 0 d a y s to in d iv id u a ls , p a r tn e r s h ip s , a n d c o r p o r a tio n s ( o th e r th a n m e m b e r b a n k s ) o n th e s e c u rity o f d ir e c t o b lig a tio n s o f th e U n ite d S ta te s o r a n y o b lig a tio n s w h ic h a re d ire c t o b lig a tio n s o f , o r fu lly g u a r a n te e d as to p rin c ip a l a n d in te re s t b y , a n y a g e n c y o f th e U n ite d S ta te s , at s u c h ra te in e x c e s s o f th e ra te in e ffe c t a t th e R e s e r v e B a n k fo r a d v a n c e s u n d e r § 2 0 1 .3 (a ) as its b o a r d o f d ire c to r s m a y e s ta b lis h s u b je c t to re v ie w a n d d e te r m in a tio n o f th e B o a rd o f G o v e r n o r s . RULES REGARDING DELEGATION OF AUTHORITY T h e B o a rd h a s d e le g a te d to th e R e s e rv e B a n k s th e a u th o rity to a p p r o v e b a n k h o ld in g c o m p a n y fo rm a tio n s in v o lv in g m o re th a n o n e b a n k a n d a c q u is itio n s b y b a n k h o ld in g c o m p a n ie s o f e x is tin g b a n k s a n d b a n k m e r g e r s , a n d h a s s e t fo rth s ta n d a rd s w ith in w h ic h th is a u th o rity m a y b e e x e rc is e d . 355 In o r d e r to a c c o m p lis h th is d e le g a tio n § 2 6 5 .2 ( f ) (2 8 ) is a d d e d a n d § 2 6 5 .2 ( f ) (2 2 ) a n d (2 4 ) a re a m e n d e d to re a d as f o llo w s , e f fe c tiv e w ith r e s p e c t to a p p lic a tio n s a c c e p te d b y th e R e s e r v e B a n k s a fte r A p ril 2 3 , 197 3 : S E C T IO N 2 6 5 .2 — S P E C IF IC F U N C T IO N S D ELEG A TED TO BO A RD EM PLO Y EES AND FED ERA L RESERV E BANKS (f) E a c h F e d e r a l R e s e r v e B a n k is a u th o r iz e d , as to m e m b e r b a n k s o r o th e r in d ic a te d o r g a n iz a tio n s h e a d q u a r te r e d in its d is tr ic t, o r u n d e r s u b p a r a g r a p h (2 5 ) o f th is p a r a g r a p h , a s to its o ffice rs: (2 2 ) U n d e r th e p r o v is io n s o f s e c tio n 3 ( a )( 1 ) o f th e B a n k H o ld in g C o m p a n y A c t (1 2 U . S . C . 1 8 4 2 ), to a p p r o v e th e f o r m a tio n o f a b a n k h o ld in g c o m p a n y th ro u g h th e a c q u is itio n b y a c o m p a n y o f a c o n tr o llin g in te re s t in th e v o tin g s h a r e s o f o n e o r m o re b a n k s , if a ll o f th e fo llo w in g c o n d i tio n s a re m e t: (i) n o m e m b e r o f th e B o a rd h a s in d ic a te d a n o b je c tio n p rio r to th e R e s e rv e B a n k ’s a c tio n . (ii) all r e le v a n t d e p a r tm e n ts o f th e R e s e rv e B a n k r e c o m m e n d a p p ro v a l. (iii) n o s u b s ta n tiv e o b je c tio n to th e p ro p o s a l h a s b e e n m a d e b y a b a n k s u p e r v is o r y a u th o r ity , th e U n ite d S ta te s D e p a r tm e n t o f J u s tic e , o r a m e m b e r o f th e p u b lic . (iv ) n o sig n ific a n t p o lic y is s u e is ra is e d b y th e p ro p o s a l as to w h ic h th e B o a rd h a s n o t e x p r e s s e d its v ie w . (v ) a n y o ffe r to a c q u ire s h a r e s o f th e b a n k o r b a n k s in v o lv e d w ill b e e x te n d e d to a ll s h a r e h o ld e r s o f th e s a m e c la s s o n a s u b s ta n tia lly e q u a l b a s i s .2 (v i) c o n s id e r a tio n s re la tin g to th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s to b e s e rv e d a re c o n s is te n t w ith o r le n d w e ig h t to w a rd a p p ro v a l o f th e a p p lic a tio n . (v ii) in th e e v e n t a n y d e b t is in c u rre d b y th e h o ld in g c o m p a n y to p u r c h a s e s h a re s o f a n y b a n k in v o lv e d in th e p r o p o s a l: (a ) a n a g re e d p la n fo r a m o r tiz a tio n o f th e d e b t w ith in a r e a s o n a b le tim e e x is ts , s u c h p e rio d n o r m a lly n o t e x c e e d in g 12 y e a rs . 2Less than all of the outstanding shares of the bank may be acquired provided that where a greater number of shares are tendered than are proposed to be purchased, the offeror will purchase the shares* tendered on a p r o rata basis (except for fractional interests) according to the number of shares tendered by each shareholder. Where an offer is not identical to all shareholders, the burden is on the applicant to demon strate the substantial equivalence of the offers extended. 356 (b ) th e in te re s t ra te o n a n y lo a n to p u rc h a s e th e b a n k s h a r e s w ill b e c o m p a r a b le w ith o th e r s to c k c o lla te r a l lo a n s b y th e le n d e r to p e r s o n s o f c o m p a r a b le c re d it s ta n d in g . (c ) n o c o m p e n s a tin g b a la n c e s , s p e c ific a lly a t tr ib u ta b le to th e lo a n , w ill b e d e p o s ite d in th e le n d in g in s titu tio n a n d th e a m o u n t o f a n y c o r r e s p o n d e n t a c c o u n t w h ic h th e p ro p o s e d s u b s id ia ry b a n k w ill m a in ta in w ith th e le n d in g in s titu tio n s h o u ld n o t e x c e e d th e a m o u n t n e c e s s a r y to c o m p e n s a te th e le n d in g b a n k fo r c o r re s p o n d e n t s e r v ic e s r e n d e r e d b y it to th e p ro p o s e d s u b s id ia ry bank. (v iii) th e R e s e r v e B a n k d e te r m in e s th a t th e m a n a g e r ia l a n d fin a n c ia l r e s o u r c e s , in c lu d in g th e e q u ity to d e b t r e la tio n s h ip s , o f A p p lic a n t, its e x is tin g s u b s id ia r ie s , a n d a n y p r o p o s e d s u b s id ia ry b a n k , a re a d e q u a te , o r w ill b e a d e q u a te w ith in a r e a s o n a b le p e r io d o f tim e a fte r c o n s u m m a tio n o f th e p r o p o s a l, a n d a n y d e b t s e rv ic e r e q u ir e m e n ts to w h ic h th e h o ld in g c o m p a n y m a y b e s u b je c t a re s u c h as to e n a b le it to m a in ta in th e c a p ita l a d e q u a c y o f a n y e x is tin g o r p r o p o s e d s u b s id ia ry b a n k in th e fo re s e e a b le fu tu re . (ix ) if A p p lic a n t o r a n y o f A p p l i c a n t ’s e x is tin g o r p ro p o s e d n o n b a n k in g s u b s id ia rie s c o m p e te in th e sa m e g e o g r a p h ic a n d p r o d u c t m a r k e t as a n y p ro p o s e d s u b s id ia ry b a n k , th e re s u ltin g o r g a n i z a tio n w ill c o n tro l n o m o re th a n 10 p e r c e n t o f th a t p r o d u c t o r s e rv ic e lin e a f te r c o n s u m m a tio n o f th e p ro p o s a l. (x ) to ta l n o n b a n k g ro s s r e v e n u e s o f A p p lic a n t a n d its s u b s id ia r ie s d o n o t e x c e e d 10 p e r c e n t o f to ta l o p e r a tin g in c o m e o f th e p ro p o s e d b a n k in g s u b s id ia r ie s . (x i) if A p p lic a n t e n g a g e s , o r is to e n g a g e , in n o n b a n k in g a c tiv itie s r e q u ir in g th e B o a r d ’s a p p ro v a l u n d e r s e c tio n 4 ( c )( 8 ) o f th e A c t, th e R e s e rv e B a n k m u s t a ls o h a v e d e le g a te d a u th o rity to a p p ro v e th e s e c tio n 4 ( c )( 8 ) a c tiv itie s . (x ii) if th e p r o p o s a l in v o lv e s th e a c q u is itio n o f th e c o n tr o llin g s to c k o f o n ly o n e b a n k , a n d a n y d e b t is in c u rr e d b y th e h o ld in g c o m p a n y to p u r c h a s e s h a re s o f th e b a n k , th e a m o u n t o f th e lo a n d o e s n o t e x c e e d 7 5 p e r c e n t o f th e p u rc h a s e p ric e o f th e s h a re s o f th e p r o p o s e d s u b s id ia ry b a n k . (x iii) if th e p ro p o s a l in v o lv e s th e a c q u is itio n o f th e c o n tr o llin g s to c k o f m o re th a n o n e b a n k , th e fo llo w in g a d d itio n a l c o n d itio n s m u s t b e m e t: (a ) in th e e v e n t a n y d e b t is in c u rr e d b y th e h o ld in g c o m p a n y to p u r c h a s e s h a re s o f a n y p r o p o s e d s u b s id ia r y b a n k s , th e to ta l a m o u n t o f th e d e b t d o e s n o t e x c e e d 10 p e r c e n t o f th e e q u ity c a p ita l a c c o u n ts o f th e h o ld in g c o m p a n y . FEDERAL RESERVE BULLETIN □ MAY 1973 (b ) th e A p p lic a n t w ill c o n tro l n o m o re th a n 15 p e r c e n t o f to ta l d e p o s its in c o m m e rc ia l b a n k s in th e S ta te . (2 4 ) U n d e r th e p r o v is io n s o f s e c tio n 3 ( a )(3 ) o f th e B a n k H o ld in g C o m p a n y A c t (1 2 U . S . C . 1 8 4 2 ), to a p p ro v e th e a c q u is itio n b y a b a n k h o l d in g c o m p a n y o f a c o n tr o llin g in te r e s t in th e v o tin g s h a re s o f a n a d d itio n a l b a n k , if all o f th e fo llo w in g c o n d itio n s a re m e t: (i) n o m e m b e r o f th e B o a rd h a s in d ic a te d an o b je c tio n p r io r to th e R e s e r v e B a n k ’s a c tio n . (ii) all r e le v a n t d e p a r tm e n ts o f th e R e s e rv e B a n k r e c o m m e n d a p p ro v a l. (iii) n o s u b s ta n tiv e o b je c tio n to th e p r o p o s a l h a s b e e n m a d e b y a b a n k s u p e r v is o r y a u th o r ity , th e U n ite d S ta te s D e p a r tm e n t o f J u s tic e , o r a m e m b e r o f th e p u b lic . (iv ) n o sig n ific a n t p o lic y is s u e is r a is e d b y th e p r o p o s a l a s to w h ic h th e B o a rd h a s n o t e x p r e s s e d its v ie w . (v ) a n y o ffe r to a c q u ire s h a re s o f th e b a n k o r b a n k s in v o lv e d w ill b e e x te n d e d to all s h a r e h o ld e r s o f th e s a m e c la s s o n a s u b s ta n tia lly e q u a l b a s i s .3 (v i) c o n s id e r a tio n s r e la tin g to th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s to b e s e rv e d a re c o n s is te n t w ith o r le n d w e ig h t to w a r d a p p ro v a l o f th e a p p lic a tio n . (v ii) in th e e v e n t a n y d e b t is in c u rr e d b y th e h o ld in g c o m p a n y to p u rc h a s e s h a re s o f a n y b a n k in v o lv e d in th e p r o p o s a l: (a ) an a g re e d p la n f o r a m o r tiz a tio n o f th e d e b t w ith in a re a s o n a b le tim e e x is ts , s u c h p e rio d n o r m a lly n o t e x c e e d in g 12 y e a rs . (b ) th e in te re s t ra te o n a n y lo a n to p u rc h a s e th e b a n k s h a re s w ill b e c o m p a r a b le w ith o th e r s to c k c o lla te ra l lo a n s b y th e le n d e r to p e r s o n s o f c o m p a ra b le c re d it s ta n d in g . (c ) n o c o m p e n s a tin g b a la n c e s , sp e c ific a lly a t trib u ta b le to th e lo a n , w ill b e d e p o s ite d in th e le n d in g in s titu tio n a n d th e a m o u n t o f a n y c o r r e s p o n d e n t a c c o u n t w h ic h th e p r o p o s e d s u b s id ia ry b a n k w ill m a in ta in w ith th e le n d in g in s titu tio n sh o u ld n o t e x c e e d th e a m o u n t n e c e s s a ry to c o m p e n s a te th e le n d in g b a n k fo r c o r re s p o n d e n t s e r v ic e s r e n d e r e d b y it to th e p ro p o s e d bank. s u b s id ia ry 3 Less than all of the outstanding shares of the bank may be acquired provided that where a greater number of shares are tendered than are proposed to be purchased, the offeror will purchase the shares tendered on a p ro rata basis (except for fractional interests) according to the number of shares tendered by each shareholder. Where an offer is not identical to all shareholders, the burden is on the applicant to demon strate the substantial equivalence of the offers extended. LAW DEPARTMENT (v iii) th e R e s e rv e B a n k d e te rm in e s th a t th e m a n a g e r ia l a n d fin a n c ia l r e s o u r c e s , in c lu d in g th e e q u ity to d e b t r e la tio n s h ip s , o f A p p lic a n t, its e x is tin g s u b s id ia r ie s , a n d a n y p r o p o s e d s u b s id ia ry b a n k , a re a d e q u a te , o r w ill b e a d e q u a te w ith in a re a s o n a b le p e rio d o f tim e a fte r c o n s u m m a tio n o f th e p r o p o s a l, a n d a n y d e b t s e rv ic e r e q u ir e m e n ts to w h ic h th e h o ld in g c o m p a n y m a y b e s u b je c t a re s u c h as to e n a b le it to m a in ta in th e c a p ita l a d e q u a c y o f a n y e x is tin g o r p r o p o s e d s u b s id ia ry b a n k in th e f o r e s e e a b le f u tu re . (ix ) if A p p lic a n t o r a n y o f A p p lic a n t’s e x is tin g o r p ro p o s e d n o n b a n k in g s u b s id ia rie s c o m p e te in th e s a m e g e o g r a p h ic a n d p ro d u c t m a r k e t as a n y p ro p o s e d s u b s id ia r y , th e re s u ltin g o rg a n iz a tio n w ill n o t c o n tro l m o re th a n 10 p e r c e n t o f th a t p ro d u c t o r s e rv ic e lin e a fte r c o n s u m m a tio n o f th e p ro p o s a l. (x ) to ta l n o n b a n k g ro s s r e v e n u e s o f th e A p p li c a n t a n d its s u b s id ia rie s d o n o t e x c e e d 10 p e r c e n t o f to ta l o p e r a tin g in c o m e o f th e c o m p a n y ’s e x is t in g o r p ro p o s e d b a n k s u b s id ia rie s . (x i) if A p p lic a n t e n g a g e s , o r is to e n g a g e , in n o n b a n k in g a c tiv itie s re q u irin g th e B o a r d ’s a p p ro v a l u n d e r s e c tio n 4 ( c )( 8 ) o f th e A c t, th e R e s e rv e B a n k m u s t a ls o h a v e d e le g a te d a u th o r ity to a p p ro v e th e s e c tio n 4 ( c )( 8 ) a c tiv itie s . (x ii) in th e e v e n t a n y d e b t is in c u rr e d b y A p p li c a n t to p u r c h a s e s h a re s o f th e b a n k , th e re s u ltin g to ta l a c q u is itio n d e b t o f th e h o ld in g c o m p a n y w ill n o t e x c e e d 10 p e r c e n t o f th e c o m p a n y ’s e q u ity c a p ita l a c c o u n ts a f te r c o n s u m m a tio n o f th e p r o p o s a l. (x iii) u n le s s th e p r o p o s e d s u b s id ia r y is a p ro p o s e d n e w b a n k , A p p lic a n t w ill c o n tro l n o m o re th a n 15 p e r c e n t o f d e p o s its in th e S ta te a fte r c o n s u m m a tio n o f th e p r o p o s a l. (x iv ) if th e b a n k to b e a c q u ire d is a n e x is tin g b a n k a n d if n o b a n k in g offices o f A p p l i c a n t ’s e x is tin g s u b s id ia r y b a n k s a re lo c a te d in th e s a m e m a r k e t as th e p r o p o s e d s u b s id ia r y , th e p ro p o s e d s u b s id ia r y h a s n o m o re th a n $ 2 5 m illio n in d e p o s its o r c o n tro ls n o m o re th a n 15 p e r c e n t o f m a r k e t d e p o s its . (x v ) if th e b a n k to b e a c q u ire d is a n e x is tin g b a n k a n d if a n y o f A p p lic a n t’s e x is tin g s u b s id ia ry b a n k s c o m p e te in th e s a m e m a r k e t as th e p ro p o s e d s u b s id ia r y , A p p lic a n t w ill c o n tro l n o m o re th a n 1 0 p e r c e n t o f m a rk e t d e p o s its a f te r c o n s u m m a tio n . (x v i) if th e b a n k to b e a c q u ir e d is a p ro p o s e d n e w b a n k , b a n k s u b s id ia r ie s o f A p p lic a n t w ill n o t h o ld in th e a g g re g a te m o re th a n 2 0 p e r c e n t o f th e c o m m e rc ia l b a n k d e p o s its in th e r e le v a n t m a r 357 k e t a re a a n d A p p lic a n t w ill n o t b e o n e o f th e d o m in a n t b a n k in g o r g a n iz a tio n s in th e S ta te . (x v ii) A p p lic a n t h a s a p r o v e n re c o r d o f f u r n is h in g to its s u b s id ia r ie s , w h e n n e e d e d , s p e c ia l s e r v ic e s , m a n a g e m e n t, c a p ita l f u n d s a n d g e n e ra l g u i d ance. (2 8 ) U n d e r th e p r o v is io n s o f s e c tio n 18 (c) o f th e F e d e ra l D e p o s it I n s u r a n c e A c t (1 2 U .S . C . 1 8 2 8 (c )), to a p p ro v e a m e r g e r , c o n s o lid a tio n , a c q u is itio n o f a s s e ts o r a s s u m p tio n o f lia b ilitie s , w h e re th e re s u ltin g b a n k is a S ta te m e m b e r b a n k , if a ll o f th e f o llo w in g c o n d itio n s a re m e t: (i) n o m e m b e r o f th e B o a rd h a s in d ic a te d an o b je c tio n p rio r to th e R e s e r v e B a n k ’s a c tio n . (ii) all r e le v a n t d e p a r tm e n ts o f th e R e s e r v e B a n k r e c o m m e n d a p p r o v a l. (iii) n o s u b s ta n tiv e o b je c tio n to th e p r o p o s a l h a s b e e n m a d e b y a b a n k s u p e r v is o ry a u th o r ity , th e U n ite d S ta te s D e p a r tm e n t o f J u s tic e , o r a m e m b e r o f th e p u b lic . (iv ) n o sig n ific a n t p o lic y is s u e is ra is e d b y th e p r o p o s a l a s to w h ic h th e B o a rd h a s n o t e x p r e s s e d its v ie w . (v ) if th e b a n k s d o n o t h a v e o ffice s in th e s a m e m a r k e t, th e b a n k to b e a c q u ire d h a s n o m o re th a n $ 2 5 m illio n in d e p o s its o r c o n tro ls n o m o re th a n 15 p e r c e n t o f m a rk e t d e p o s i ts .4 (v i) if th e b a n k s c o m p e te in th e s a m e b a n k in g m a r k e t, th e re s u ltin g b a n k w ill c o n tro l n o m o re th a n 10 p e r c e n t o f m a r k e t d e p o s i ts .5 (v ii) if a p a r e n t h o ld in g c o m p a n y o r a n y o f its s u b s id ia rie s c o m p e te s in th e s a m e g e o g r a p h ic a n d p r o d u c t m a rk e t as th e b a n k to b e a c q u ir e d , o r a n y o f its s u b s id ia r ie s , th e h o ld in g c o m p a n y w ill c o n tro l n o m o re th a n 10 p e r c e n t o f th a t p r o d u c t o r s e r v ic e lin e a fte r c o n s u m m a tio n o f th e p ro p o s a l. (v iii) th e R e s e r v e B a n k d e te rm in e s th a t th e m a n a g e r ia l a n d fin a n c ia l r e s o u r c e s , in c lu d in g th e e q u ity c a p ita l a c c o u n ts o f th e r e s u ltin g b a n k , a re a d e q u a te , o r w ill b e a d e q u a te w ith in a r e a s o n a b le p e r io d o f tim e a fte r th e p ro p o s a l is c o n s u m m a te d . (ix ) c o n s id e r a tio n s re la tin g to th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s to b e s e rv e d a re c o n s is te n t w ith , o r le n d w e ig h t to w a r d , a p p ro v a l o f th e a p p lic a tio n . 4 If either of the proponent banks is a subsidiary of a holding company, and the parent company has another bank subsidiary operating in the market of the bank to be acquired, deposits of such offices should be included in the computation of market shares. 5See footnote 4, above. 358 INTERPRETATIONS OF REGULATION T IN D E P E N D E N T B R O K E R /D E A L E R S A R R A N G IN G C R E D I T IN C O N N E C T IO N W IT H T H E S A L E O F IN S U R A N C E P R E M IU M F U N D IN G P R O G R A M S T h e B o a r d ’s S e p te m b e r 5 , 197 2 c la r if y in g a m e n d m e n t to s e c tio n 2 2 0 .4 (k ) se t fo rth th a t c r e d ito rs w h o a rra n g e c r e d it fo r th e a c q u is itio n o f m u tu a l fu n d s h a re s a n d in s u ra n c e a re a ls o p e r m i t te d to se ll m u tu a l fu n d s h a re s w ith o u t in s u ra n c e u n d e r th e p r o v is io n s o f th e s p e c ia l c a s h a c c o u n t. It s h o u ld b e u n d e r s to o d , o f c o u r s e , th a t su c h a c c o u n t p r o v id e s a r e la tiv e ly s h o r t c r e d it p e rio d o f u p to s e v e n b u s in e s s d a y s e v e n w ith s o - c a lle d c a s h tr a n s a c tio n s . T h is a m e n d m e n t w a s in a c c o r d a n c e w ith th e B o a r d ’s u n d e r s ta n d in g in 1 9 6 9 , w h e n th e in s u r a n c e p r e m iu m f u n d in g p ro v is io n s w e re a d o p te d in s e c tio n 2 2 0 .4 ( k ) , th a t firm s e n g a g e d in a g e n e ra l s e c u ritie s b u s in e s s w o u ld n o t a ls o b e e n g a g e d in th e sa le a n d a r ra n g in g o f c re d it in c o n n e c tio n w ith su c h in s u r a n c e p re m iu m f u n d in g p ro g ra m s . T h e 1 9 7 2 a m e n d m e n t e lim in a te d fro m s e c tio n 2 2 0 .4 ( k ) th e r e q u ir e m e n t th a t, to b e e lig ib le fo r th e p ro v is io n s o f th e s e c tio n , a c r e d ito r h a d to b e th e is s u e r, o r a s u b s id ia r y o r a ffiliate o f th e is s u e r, o f p ro g r a m s w h ic h c o m b in e th e a c q u is itio n o f b o th m u tu a l fu n d s h a re s a n d in s u ra n c e . T h u s th e a m e n d m e n t p e r m its a n in d e p e n d e n t b r o k e r /d e a le r to se ll su c h a p r o g ra m a n d to a rra n g e fo r fin a n c in g in th a t c o n n e c tio n . In re a c h in g s u c h d e c is io n , th e B o a rd a g a in re lie d u p o n th e e a rlie r u n d e rs ta n d in g th a t in d e p e n d e n t b r o k e r/d e a le r s w h o w o u ld se ll su c h p r o g ra m s w o u ld n o t b e e n g a g e d in tra n s a c tin g a g e n e ra l s e c u ritie s b u s in e s s . In r e s p o n s e to a sp e c ific v ie w re c e n tly e x p r e s s e d , th e B o a rd a g re e s th a t u n d e r R e g u la tio n T: . . . a broker/dealer dealing in special insurance premium funding products can only extend credit in connection with such products or in connection with the sale of shares of registered investment companies under the cash accounts . . . [and] cannot engage in the general securities business or sell any securities other than shares . . . [in] registered investment companies through a cash account or any other manner involv ing the extension of credit. T h e re is a w a y , o f c o u r s e , as h a s b e e n in d ic a te d , th a t a n in d e p e n d e n t b r o k e r /d e a le r m ig h t b e a b le to sell o th e r th a n s h a re s o f r e g is te re d in v e s tm e n t c o m p a n ie s w ith o u t c r e a tin g a n y c o n flic t w ith th e re g u la tio n . S u c h s a le s c o u ld b e e x e c u te d o n a FEDERAL RESERVE BULLETIN □ MAY 1973 “ f u n d s o n h a n d ” b a s is a n d in th e c a s e o f p a y m e n t b y c h e c k , w o u ld h a v e to in c lu d e th e c o lle c tio n o f s u c h c h e c k . It is u n d e rs to o d fro m in d u s try s o u r c e s , h o w e v e r , th a t fe w if a n y in d e p e n d e n t b r o k e r/d e a le r s e n g a g e s o le ly in a “ fu n d s o n h a n d ” ty p e o f o p e ra tio n . T R E A T M E N T O F S IM U L T A N E O U S L O N G A N D S H O R T P O S I T I O N S IN A M A R G IN A C C O U N T W IT H R E S P E C T T O O P T IO N S T h e B o a rd w a s r e c e n tly a s k e d w h e th e r u n d e r R e g u la tio n T , “ C r e d it b y B ro k e rs a n d D e a l e r s ” (1 2 C .F .R . 2 2 0 ), if th e re a re s im u lta n e o u s lo n g a n d s h o rt p o s itio n s in th e s a m e s e c u rity in th e sa m e m a rg in a c c o u n t (o fte n re fe rre d to a s a s h o rt sa le “ a g a in s t th e b o x ” ), su c h p o s itio n s m a y b e u s e d to s u p p ly th e p la c e o f th e d e p o s it o f m a r g in o r d i n a rily re q u ire d in c o n n e c tio n w ith th e g u a ra n te e b y a c r e d ito r o f a p u t o r c a ll o p tio n o r c o m b in a tio n th e r e o f o n su c h s to c k . T h e a p p lic a b le p ro v is io n s o f R e g u la tio n T a re § 2 2 0 .3 ( d ) ( 3 ) a n d (5 ) a n d § 2 2 0 .3 ( g ) ( 4 ) a n d (5 ) w h ic h p ro v id e as fo llo w s : (d ) . . . th e a d ju s te d d e b it b a la n c e o f a g e n e ra l a c c o u n t . . . sh a ll b e c a lc u la te d b y ta k in g th e su m o f th e fo llo w in g ite m s: (3) th e c u r re n t m a r k e t v a lu e o f a n y s e c u ritie s (o th e r th a n u n is s u e d s e c u ritie s ) so ld s h o rt in th e g e n e ra l a c c o u n t p lu s , fo r e a c h s e c u rity (o th e r th a n an e x e m p te d s e c u rity ) , s u c h a m o u n t as th e B o a rd sh a ll p r e s c rib e fro m tim e to tim e in § 2 2 0 .8 (d ) (th e S u p p le m e n t to R e g u la tio n T ) as th e m a rg in r e q u ire d fo r s u c h s h o rt s a le s , e x c e p t th a t s u c h a m o u n t so p r e s c r ib e d in su c h § 2 2 0 .8 ( d ) n e e d n o t b e in c lu d e d w h e n th e re a re h e ld in th e g e n e ra l a c c o u n t . . . th e s a m e s e c u ritie s o r s e c u ritie s e x c h a n g e a b le o r c o n v e r tib le w ith in 9 0 c a le n d a r d a y s , w ith o u t re s tric tio n o th e r th a n th e p a y m e n t o f m o n e y , in to s u c h s e c u ritie s so ld s h o rt; (5) th e a m o u n t o f a n y m a r g in c u s to m a r ily re q u ire d b y th e c r e d ito r in c o n n e c tio n w ith h is e n d o r s e m e n t o r g u a r a n te e o f a n y p u t, c a ll, o r o th e r o p tio n ; (g ) . . . (4 ) A n y tr a n s a c tio n w h ic h s e rv e s to m e e t th e re q u ire m e n ts o f p a r a g r a p h (e ) o f th is s e c tio n o r o th e r w is e s e r v e s to p e r m it a n y o f fs e ttin g t r a n s a c tio n in a n a c c o u n t s h a ll, to th a t e x te n t, b e u n a v a ila b le to p e rm it a n y o th e r tr a n s a c tio n in su c h a c c o u n t. (5) F o r th e p u rp o s e s o f th is P a rt ( R e g u la tio n T ) , if a s e c u rity h a s m a x im u m lo a n v a lu e u n d e r p a r a LAW DEPARTMENT g ra p h (c )(1 ) o f th is s e c tio n in a g e n e ra l a c c o u n t, o r u n d e r § 2 2 0 .4 (j) in a s p e c ia l c o n v e r tib le d e b t s e c u rity a c c o u n t, a s a le o f th e s a m e s e c u rity (e v e n th o u g h n o t th e sa m e c e rtific a te ) in s u c h a c c o u n t sh a ll b e d e e m e d to b e a lo n g s a le a n d sh a ll n o t b e d e e m e d to b e o r tr e a te d as a s h o rt s a l e . ” R u le 4 31 o f th e N e w Y o rk S to c k E x c h a n g e r e q u ire s th a t a c r e d ito r o b ta in a m in im u m d e p o s it o f 25 p e r c e n t o f th e c u rre n t m a rk e t v a lu e o f th e o p tio n e d s to c k in c o n n e c tio n w ith h is is s u a n c e o r g u a ra n te e o f a p u t, a n d at le a s t 3 0 p e r c e n t in th e c a s e o f a c a ll (a n d th a t s u c h p o s itio n b e “ m a r k e d to th e m a r k e t ” ), b u t p e rm its a s h o rt p o s itio n in th e s to c k to s e rv e in lie u o f th e re q u ire d d e p o s it in th e c a s e o f a p u t a n d a lo n g p o s itio n to s e rv e in th e c a s e o f a c a ll. T h u s , w h e re th e a p p ro p ria te p o s itio n is h e ld in a n a c c o u n t, th a t p o s itio n m a y s e rv e as th e m a r g in r e q u ir e d b y § 2 2 0 .3 (d ) ( 5 ) . In a s h o r t s a le “ a g a in s t th e b o x , ” h o w e v e r , th e c u s to m e r is b o th lo n g a n d s h o r t th e s a m e s e c u rity . H e m a y h a v e e s ta b lis h e d e ith e r p o s itio n , p r o p e rly m a r g in e d , p rio r to ta k in g th e o th e r , o r h e m a y h a v e d e p o s ite d fu lly p a id s e c u ritie s in h is m a r g in a c c o u n t o n th e sa m e d a y h e m a k e s a s h o rt sa le o f su c h s e c u ritie s . In e ith e r c a s e , h e w ill h a v e d ir e c te d h is b r o k e r to b o rr o w s e c u ritie s e ls e w h e re in o rd e r to m a k e d e liv e ry o n th e s h o rt s a le r a th e r th a n u s in g h is lo n g p o s itio n fo r th is p u r p o s e (se e a ls o 17 C .F .R . 2 4 0 .3 b - 3 ) . G e n e ra lly s p e a k in g , a c u s to m e r m a k e s a s h o rt sa le “ a g a in s t th e b o x ” fo r ta x re a s o n s . R e g u la tio n T , h o w e v e r , p r o v id e s in § 2 2 0 .3 (g ) th a t th e tw o p o s itio n s m u s t b e “ n e tte d o u t ” fo r th e p u rp o s e s o f th e c a lc u la tio n s r e q u ire d b y th e re g u la tio n . T h u s , th e B o a rd c o n c lu d e s th a t n e ith e r p o s itio n w o u ld b e a v a ila b le to se rv e as th e d e p o s it o f m a rg in re q u ir e d in c o n n e c tio n w ith th e e n d o r s e m e n t b y th e c r e d ito r o f a n o p tio n . A s im ila r c o n c lu s io n o b ta in s u n d e r § 2 2 0 .3 ( d ) ( 3 ) . T h a t s e c tio n p r o v id e s , in e s s e n c e , th a t th e m a r g in o th e rw is e r e q u ire d in c o n n e c tio n w ith a s h o rt sa le n e e d n o t b e in c lu d e d in th e a c c o u n t if th e c u s to m e r h a s in th e a c c o u n t a lo n g p o s itio n in th e sa m e s e c u rity . In § 2 2 0 .3 ( g ) ( 4 ) , h o w e v e r , it is p ro v id e d th a t “ [A ]n y tr a n s a c tio n w h ic h . . . s e rv e s to p e r m it a n y o f f s e ttin g t r a n s a c tio n in a n a c c o u n t s h a ll, to th a t e x te n t, b e u n a v a il a b le to p e r m it a n y o th e r tr a n s a c tio n in s u c h a c c o u n t . ” T h u s , if a c u s to m e r h a s , fo r e x a m p le , a lo n g p o s itio n in a s e c u rity a n d th a t lo n g p o s itio n h a s b e e n u s e d to s u p p ly th e m a rg in re q u ire d in c o n n e c tio n w ith a s h o rt sa le o f th e s a m e s e c u rity , th e n th e lo n g p o s itio n is u n a v a ila b le to s e rv e as 359 th e m a rg in r e q u ire d in c o n n e c tio n w ith th e c r e d i t o r ’s e n d o r s e m e n t o f a c a ll o p tio n o n s u c h s e c u rity . A s itu a tio n w a s a ls o d e s c rib e d in w h ic h a c u s to m e r h a s p u r p o r te d to e s ta b lis h s im u lta n e o u s o ff s e ttin g lo n g a n d s h o rt p o s itio n s b y e x e c u tin g a “ c r o s s ” o r w a s h s a le o f th e s e c u rity o n th e s a m e d a y . In th is s itu a tio n , n o c h a n g e in th e b e n e fic ia l o w n e r s h ip o f s to c k h a s ta k e n p la c e . S in c e th e re is n o a c tu a l “ c o n t r a ” p a r ty to e ith e r t r a n s a c tio n , a n d n o s to c k h a s b e e n b o r ro w e d o r d e liv e re d to a c c o m p lis h th e s h o rt s a le , su c h fic titio u s p o s itio n s w o u ld h a v e n o v a lu e fo r p u r p o s e s o f th e B o a r d ’s m a rg in re g u la tio n s . I n d e e d , th e a d o p tio n o f s u c h a s c h e m e in c o n n e c tio n w ith a n o v e ra ll s tr a te g y in v o lv in g th e is s u a n c e , e n d o r s e m e n t o r g u a ra n te e o f p u t o r c a ll o p tio n s o r c o m b in a tio n s th e r e o f a p p e a rs to b e m a n ip u la tiv e a n d m a y h a v e b e e n e m p lo y e d fo r th e p u r p o s e o f c ir c u m v e n tin g th e r e q u ir e m e n ts o f th e r e g u la tio n s . INTERPRETATION OF REGULATION Z R E F U N D O F U N E A R N E D F IN A N C E CH A RG E; PREPA Y M EN T PENA LTY U n d e r § 2 2 6 .8 ( b ) ( 7 ) a c r e d ito r m u s t p ro v id e an id e n tific a tio n o f th e m e th o d o f c o m p u tin g a n y u n e a rn e d p o rtio n o f th e fin a n c e c h a r g e in th e e v e n t o f p r e p a y m e n t o f an o b lig a tio n , as w ell as a s ta te m e n t o f th e a m o u n t o r m e th o d o f c o m p u ta tio n o f a n y c h a r g e th a t m a y be d e d u c te d fro m th e a m o u n t o f a n y r e b a te . S e c tio n 2 2 6 .8 ( b ) ( 6 ) re q u ire s th e c r e d ito r to p ro v id e “ a d e s c rip tio n o f a n y p e n a lty c h a rg e th a t m a y b e im p o s e d b y th e c r e d ito r o r h is a s s ig n e e fo r p r e p a y m e n t o f th e p rin c ip a l o f th e o b lig a tio n . . . ” A q u e s tio n a ris e s w h e th e r th e c o m p u ta tio n o f c e r ta in r e b a te s o f u n e a rn e d fin a n c e c h a r g e s o n c o n tra c ts w ith p r e c o m p u te d fin a n c e c h a rg e s in v o lv e s a “ p r e p a y m e n t p e n a l t y . ” A s e c o n d q u e s tio n c o n c e rn s th e d is c lo s u r e s r e q u ire d to id e n tify th e m e th o d o f c o m p u tin g a n y fin a n c e c h a r g e re b a te . S e c tio n 2 2 6 .8 (b ) ( 6 ) re la te s o n ly to c h a rg e s a s se ss e d in c o n n e c tio n w ith o b lig a tio n s w h ic h d o n o t in v o lv e p re c o m p u te d fin a n c e c h a rg e s in c lu d e d in th e o b lig a tio n . It a p p lie s to tr a n s a c tio n s in w h ic h th e fin a n c e c h a rg e is c o m p u te d fro m tim e to tim e b y a p p lic a tio n o f a ra te to th e u n p a id p rin c ip a l b a la n c e . P r e p a y m e n t p e n a ltie s w h ic h re q u ire d i s c lo s u re u n d e r th is s e c tio n ( w h ic h p rin c ip a lly a ris e in c o n n e c tio n w ith p r e p a y m e n t o f real e s ta te m o rtg a g e s ) o c c u r w h e n th e o b lig o r in s u c h a tra n s a c tio n is re q u ire d to p a y s e p a ra te ly an a d d i FEDERAL RESERVE BULLETIN □ MAY 1973 360 tio n a l a m o u n t fo r p a y in g all o r p a rt o f th e o b lig a tio n b e fo re m a tu rity . O n th e o th e r h a n d , § 2 2 6 .8 ( b ) ( 7 ) is d e s ig n e d to e n c o m p a s s th e d i s c lo s u re s n e c e s s a ry w ith r e g a rd to th e p r e p a y m e n t o f an o b lig a tio n in v o lv in g p r e c o m p u te d fin a n c e c h a rg e s w h ic h a re in c lu d e d in th e fa c e a m o u n t o f th e o b lig a tio n . T h e r e f o r e , a lth o u g h in a p r e c o m p u te d o b lig a tio n th e fin a n c e c h a rg e r e b a te to a c u s to m e r m a y b e le ss w h e n c a lc u la te d a c c o rd in g to th e “ R u le o f 7 8 ’s , ” “ su m o f th e d i g i t s , ” o r o th e r m e th o d th a n if c a lc u la te d b y th e a c tu a ria l m e th o d , s u c h d iffe re n c e d o e s n o t c o n s titu te a p e n a lty c h a rg e fo r p r e p a y m e n t th a t m u s t b e d e s c rib e d p u r s u a n t to § 2 2 6 .8 ( b ) ( 6 ) . S e c tio n 2 2 6 .8 (b ) ( 7 ) r e q u ir e s “ id e n tif ic a tio n ” o f th e re b a te m e th o d u s e d o n p re c o m p u te d c o n tr a c ts . M a n y S ta te s ta tu te s p r o v id e fo r re b a te s o f u n e a rn e d fin a n c e c h a r g e s u n d e r m e th o d s k n o w n as th e “ R u le o f 7 8 ’s ” o r “ su m o f th e d i g it s ” o r o th e r m e th o d s . In v ie w o f th e fa c t th a t su c h s ta tu to ry p r o v is io n s in v o lv e c o m p le x m a th e m a tic a l d e s c rip tio n s w h ic h g e n e r a lly c a n n o t b e c o n d e n s e d in to s im p le a c c u ra te s ta te m e n ts , a n d w h ic h if r e p e a te d a t le n g th o n d is c lo s u r e fo rm s c o u ld d e tra c t fro m o th e r im p o rta n t d is c lo s u r e s , th e r e q u ir e m e n t o f r e b a te “ id e n tif ic a tio n ” is sa tisfie d s im p ly b y re fe re n c e b y n a m e to th e “ R u le o f 7 8 ’s ” o r o th e r m e th o d , as a p p lic a b le . BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3(a) OF BANK HOLDING COMPANY ACT T H E F IR S T N A T I O N A L B A N C O R P O R A T I O N , I N C ., DENVER, COLORADO O r d e r A p p r o v in g A c q u is it io n of B ank The F irs t N a tio n a l B a n c o r p o r a tio n , I n c ., D e n v e r, C o lo r a d o , a b a n k h o ld in g c o m p a n y w ith in th e m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t, h a s a p p lie d fo r th e B o a r d ’s a p p ro v a l u n d e r § 3 ( a )(3 ) o f th e A c t (1 2 U .S .C . 1 8 4 2 (a )(3 )) to a c q u ire 8 0 p e r c e n t o r m o re o f th e v o tin g s h a re s o f T h e R o u tt C o u n ty N a tio n a l B a n k o f S te a m b o a t S p r in g s , S te a m b o a t S p r in g s , C o lo r a d o ( “ B a n k ” ). N o tic e o f th e a p p lic a tio n , a ffo rd in g o p p o rtu n ity f o r in te re s te d p e r s o n s to s u b m it c o m m e n ts a n d v ie w s , h a s b e e n g iv e n in a c c o rd a n c e w ith § 3 (b ) o f th e A c t. T h e tim e fo r filin g c o m m e n ts a n d v ie w s h a s e x p ir e d , a n d th e B o a rd h a s c o n s id e re d th e a p p lic a tio n a n d all c o m m e n ts r e c e iv e d in lig h t o f th e f a c to rs se t fo rth in § 3 (c ) o f th e A c t (1 2 U .S .C . 1 8 4 2 (c )). A p p lic a n t, th e la rg e s t b a n k in g o rg a n iz a tio n in C o lo r a d o , c o n tro ls e ig h t b a n k s w ith d e p o s its o f $ 7 8 7 .2 m illio n , r e p re s e n tin g 1 4 .7 p e r c e n t o f to ta l d e p o s its o f c o m m e rc ia l b a n k s in th e S ta te . (A ll b a n k in g d a ta a re as o f J u n e 3 0 , 1 9 7 2 , a n d re fle ct h o ld in g c o m p a n y f o rm a tio n s a n d a c q u is itio n s a p p r o v e d th r o u g h D e c e m b e r 3 1 , 1 9 7 2 .) 1 C o n s u m *On June 9, 1970 and November 3, 1970, respectively, the Board announced the approval of Applicant’s applications to acquire The First National Bank of Greeley, Greeley, Colorado ($40 million of deposits) and The Security State Bank of Sterling, Sterling, Colorado ($24 million of deposits). Con summation of these acquisitions has been delayed by litigation instituted by the Department of Justice. m a tio n o f th e p ro p o s e d a c q u is itio n o f B a n k ($ 2 0 m illio n o f d e p o s its ) w o u ld in c re a s e A p p l i c a n t ’s s h a re o f d e p o s its o f c o m m e rc ia l b a n k s in C o lo ra d o b y le ss th a n .5 p e r c e n ta g e p o in ts a n d w o u ld n o t r e s u lt in a s ig n ific a n t in c re a s e in c o n c e n tr a tio n o f b a n k r e s o u r c e s in C o lo r a d o . B a n k o p e ra te s o n e o ffice a n d is th e o n ly b a n k in S te a m b o a t S p r in g s , R o u tt C o u n ty , C o lo r a d o , a s p a r s e ly p o p u la te d ru ra l c o m m u n ity lo c a te d in n o r th w e s te r n C o lo ra d o . B a n k is lo c a te d a p p r o x i m a te ly 150 ro a d m ile s n o r th w e s t o f A p p lic a n t’s le a d b a n k (F irs t N a tio n a l B a n k , D e n v e r , d e p o s its o f $ 6 1 5 m illio n ) w h ic h is lo c a te d in D e n v e r , C o lo r a d o , a n d is th e la rg e s t c o m m e rc ia l b a n k in th e S ta te . C o n s u m m a tio n o f th is p ro p o s e d a c q u i s itio n w o u ld c o n s titu te A p p l i c a n t ’s in itia l e n try in to a n a re a w e s t o f th e R o c k y M o u n ta in s . N o c o m p e titio n e x is ts b e tw e e n B a n k a n d a n y o f A p p l ic a n t ’s s u b s id ia r ie s . In v ie w o f d is ta n c e s s e p a ra tin g B a n k f ro m A p p lic a n t’s p re s e n t s u b s i d ia r ie s , g e o g r a p h ic a l b a rrie rs a n d C o l o r a d o ’s r e s tric tiv e b ra n c h in g la w s , it is u n lik e ly th a t a n y s ig n ific a n t c o m p e titio n w o u ld d e v e lo p in th e fu tu re b e tw e e n B a n k a n d a n y o f A p p l i c a n t ’s s u b s id ia ry b a n k s th a t w o u ld b e e lim in a te d b y c o n s u m m a tio n o f th e p ro p o s e d a c q u is itio n . C o n s id e r a tio n s re la tin g to th e fin a n c ia l a n d m a n a g e r ia l re s o u r c e s a n d p ro s p e c ts o f A p p lic a n t, its s u b s id ia r ie s a n d B a n k a re r e g a rd e d as s a t is fa c to ry a n d c o n s is te n t w ith a p p ro v a l o f th e a p p li c a tio n . T h e U n ite d S ta te s D e p a rtm e n t o f J u s tic e in c o m m e n tin g o n th e p r o p o s a l s ta te d th a t if m u ltip le a c q u is itio n s w e re m a d e in w e s te rn C o lo ra d o b y th e fe w le a d in g C o lo r a d o b a n k h o ld in g c o m p a n ie s , s u c h a c o u rs e m ig h t h a v e s e rio u s c o m p e titiv e e ffe c ts b y d e te r r in g th e fo rm a tio n o f lo c a l a lt e r n a LAW DEPARTMENT tiv e s . W h ile s ta tin g th a t it w a s d iffic u lt to a s s e s s th e w e ig h t o f th e s e a n tic o m p e titiv e e ffe c ts in th e c o n te x t o f a n y s in g le a c q u is itio n , th e D e p a rtm e n t fe lt th a t th e p ro p o s a l w o u ld h a v e a d v e rs e e ffe c ts . T h e B o a rd a g re e s th a t d e v e lo p m e n ts s u c h as th o s e c ite d b y th e D e p a r tm e n t w o u ld h a v e s e rio u s c o m p e titiv e e ffe c ts . H o w e v e r, th e B o a rd e v a lu a te s e a c h p ro p o s a l as to th e m e rits o f th a t p r o p o s a l. A s s ta te d a b o v e , c o n s u m m a tio n o f th is p ro p o s a l w o u ld e lim in a te n o e x is tin g o r lik e ly p o te n tia l c o m p e titio n w ith p re s e n t s u b s id ia rie s o f A p p lic a n t. A r e c e n t c h a r te r a p p lic a tio n fo r S te a m b o a t S p rin g s w a s d e n ie d b y th e C o lo r a d o B a n k in g B o a rd o n th e b a s is th a t th e n e e d fo r th e n e w b a n k h a d n o t b e e n d e m o n s tr a te d . T h is d e te r m in a tio n w a s r e v e rs e d b y th e R o u tt C o u n ty D is tric t C o u r t a n d is c u rre n tly o n a p p e a l. In th e in te r im , tw o o th e r S ta te c h a r te r a p p lic a tio n s h a v e b e e n file d , in c lu d in g o n e b y a m u ltib a n k h o ld in g c o m p a n y . In v ie w o f th e a b o v e , a n d th e lo w p o p u la tio n d e n s ity o f S te a m b o a t S p r in g s , it a p p e a r s u n lik e ly th a t A p p lic a n t w o u ld a tte m p t to e n te r th e m a r k e t d e n o v o . O n th e b a s is o f th e r e c o rd b e f o re it, th e B o a rd c o n c lu d e s th a t c o n s u m m a tio n o f th e p ro p o s e d a c q u is itio n w o u ld n o t a d v e rs e ly a ffe c t c o m p e titio n in a n y re le v a n t a re a . T h e B o a rd f u r th e r c o n c lu d e s th a t c o n s u m m a tio n o f th e p r o p o s a l w o u ld n o t h a v e a sig n ific a n tly a d v e r s e e ffe c t o n th e d e v e lo p m e n t o f a n e w b a n k in S te a m b o a t S p rin g s w e re a c h a rte r to b e g ra n te d . D e v e lo p m e n t o f th e S te a m b o a t S p r in g s a re a in to a y e a r - r o u n d v a c a tio n a re a h a s in c re a s e d th e d e m a n d fo r b a n k in g s e r v ic e s b e y o n d lo c a l c a p a b il itie s , p a r tic u la r ly fo r b u s in e s s e n te rp ris e a n d c o m m e r c ia l re a l e s ta te le n d in g . A ffilia tio n w ith A p p li c a n t w o u ld fa c ilita te lo a n p a r tic ip a tio n s w ith r e s p e c t to la rg e r re a l e s ta te lo a n s a n d o th e r b u s in e s s lo a n s as w e ll a s g iv in g b a n k a c c e s s to re a l e s ta te le n d in g e x p e r tis e . It w o u ld a ls o a llo w B a n k to a g g r e s s iv e ly e n c o u ra g e th e d e v e lo p m e n t o f r e c r e a tio n a l e n te r p r is e s a n d to s e rv ic e th e g r o w in g tru s t n e e d s o f th e a re a w h ic h a re p re s e n tly g o in g u n s e rv e d lo c a lly . C o n s id e ra tio n s r e la tin g to th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s to b e s e r v e d , th e r e f o r e , le n d c o n s id e r a b le w e ig h t to w a rd a p p ro v a l o f th e a p p lic a tio n . It is th e B o a r d ’s ju d g m e n t th a t th e tr a n s a c tio n w o u ld b e in th e p u b lic in te r e s t a n d sh o u ld b e a p p ro v e d . O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n is a p p ro v e d fo r th e re a s o n s s u m m a riz e d a b o v e . T h e tr a n s a c tio n sh a ll n o t b e c o n s u m m a te d (a) b e fo re th e th irtie th c a le n d a r d a y fo llo w in g th e e ffe c tiv e d a te o f th is O rd e r, o r (b ) la te r th a n th re e m o n th s a fte r th e e ffe c tiv e d a te o f th is O r d e r , u n le s s su c h p e r io d is e x te n d e d f o r g o o d c a u s e b y th e B o a rd , 361 o r b y th e F e d e ra l R e s e rv e B a n k o f K a n s a s C ity , p u r s u a n t to d e le g a te d a u th o r ity . B y o r d e r o f th e B o a rd o f G o v e r n o r s , e f fe c tiv e A p ril 2 0 , 1973. Voting for this action: Governors Mitchell, Sheehan, and Bucher. Voting against this action: Vice Chairman Robertson and Governor Brimmer. Absent and not voting: Chairman Burns and Governor Daane. ( S ig n e d ) T y n a n S m i t h , [s e a l] S e c r e t a r y o f th e B o a r d . D is s e n t in g S t a t e m e n t o f G o v e r n o r s R o b e r t s o n a n d B r im m e r W e d is s e n t fro m th e m a j o r i ty ’s a c tio n a p p r o v in g th e e n try o f A p p lic a n t, th e la rg e s t b a n k in g o r g a n i z a tio n in C o lo r a d o , in to S te a m b o a t S p rin g s th ro u g h a c q u is itio n o f th e o n ly b a n k in th a t c o m m u n ity . A c q u is itio n o f B a n k b y A p p lic a n t v e ry lik e ly w o u ld h a v e s ig n ific a n t a d v e rs e e ffe c ts o n th e d e v e lo p m e n t o f e ffe c tiv e c o m p e titio n in th e S te a m b o a t S p rin g s a re a . O n n u m e ro u s o c c a s io n s , w e h a v e e x p r e s s e d o u r o b je c tio n to th e n o w f a m ilia r p r a c tic e o f th e la rg e s t b a n k h o ld in g c o m p a n ie s in th e ir r e s p e c tiv e s ta te s e x p a n d in g s ta te w id e in to n e w m a rk e ts th r o u g h th e a c q u is itio n o f th e la r g e s t— o r m o s t v ia b le — in d e p e n d e n t b a n k s in s m a lle r c o m m u n itie s . T h e m a j o r it y ’s a c tio n , a u th o r iz in g A p p l i c a n t ’s a c q u is itio n o f B a n k , w ill re s u lt in A p p lic a n t a c q u irin g a v irtu a l m o n o p o ly p o s itio n in S te a m b o a t S p r in g s . S u c h a c tio n w ill tra n s f e r c o n tro l o v e r th e b a n k in g r e s o u rc e s o f S te a m b o a t S p rin g s to a s in g le la rg e b a n k in g o rg a n iz a tio n so th a t p ro s p e c ts fo r th e d e v e lo p m e n t o f e ffe c tiv e c o m p e titio n in th e a re a w ill b e m a te ria lly re d u c e d . A lth o u g h s itu a te d in th e re m o te n o r th w e s te r n p o rtio n o f th e S ta te , S te a m b o a t S p r in g s is n o t a d o rm a n t little m o u n ta in to w n . W h ile its p o p u la tio n is s m a ll, its ra te o f g ro w th h a s k e p t p a c e w ith th e re s t o f th e S ta te , a n d it is a n a re a o f in c r e a s in g d e v e lo p m e n t a n d g r o w th . W ith in th e la s t fe w y e a r s , th ro u g h th e e ffo rts o f d e v e lo p e r s a n d i n v e s to r s , th e a r e a h a s b e c o m e a m a jo r w in te r a n d y e a r- ro u n d re c re a tio n c e n te r. B a n k ($ 2 0 m illio n o f d e p o s its ) h a s b e n e fite d s ig n ific a n tly fro m th e a r e a ’s g ro w th a n d it is n o w th e la rg e s t b a n k in th e n o r th w e s te r n s e c to r o f C o lo r a d o — h a v in g d o u b le d its d e p o s its s in c e 1 9 6 8 . B a n k h a s p la y e d a n a c tiv e ro le in e n c o u r a g in g lo c a l e c o n o m ic d e v e l o p m e n t. It h a s b e e n s e r v in g w e ll o th e r b a n k in g n e e d s o f th e r e s id e n ts o f S te a m b o a t S p r in g s , a n d it a p p e a rs c a p a b le o f c o n tin u e d b e n e fic ia l s e rv ic e to th e c o m m u n ity w ith o u t a ffilia tio n w ith A p p li c a n t. FEDERAL RESERVE BULLETIN □ MAY 1973 362 In o u r o p in io n , A p p lic a n t sh o u ld b e re q u ire d to e n te r S te a m b o a t S p rin g s th ro u g h th e f o rm a tio n o f a n e w b a n k ra th e r th a n th ro u g h a c q u is itio n o f B a n k . A p p lic a n t is th e S t a te ’s la rg e s t b a n k h o ld in g c o m p a n y w ith a p p r o x im a te ly 15 p e r c e n t o f th e d e p o s its o f c o m m e rc ia l b a n k s in th e S ta te . U n d o u b te d ly , it h a s th e fin a n c ia l a n d m a n a g e ria l re s o u rc e s n e c e s s a r y to s u p p o rt its e n tr y d e n o v o in to S te a m b o a t S p r in g s . T h e m a jo rity p o in ts to th e fa c t th a t th re e s e p a ra te g ro u p s h a v e a p p lie d fo r c h a rte rs to o rg a n iz e n e w b a n k s in S te a m b o a t S p rin g s as s u p p o rt fo r th e p r o p o s itio n th a t it is u n lik e ly th a t A p p lic a n t w o u ld a tte m p t to e n te r S te a m b o a t S p r in g s d e n o v o . T h e fa c t th a t g ro u p s o th e r th a n A p p lic a n t h a v e a p p lie d fo r b a n k c h a r te r s in S te a m b o a t S p rin g s ( p o s s ib ly m a k in g A p p li c a n t ’s p r o s p e c ts fo r b e in g g r a n te d a n e w c h a rte r le ss lik e ly ) in n o w a y ju stifie s a p p ro v a l o f A p p li c a n t ’s r e q u e s t to a c q u ire a m o n o p o ly p o s itio n in S te a m b o a t S p rin g s th ro u g h a c q u is itio n o f B a n k . T h e v e ry fa c t th a t n u m e ro u s g r o u p s a re a tte m p tin g to o r g a n iz e n e w b a n k s in th a t c o m m u n ity s e rv e s as s tro n g in d ic a tio n o f th e p r e s e n t o r p o te n tia l a b ility o f th e a re a to s u p p o rt at le a st o n e o th e r bank. In c o m m e n tin g o n th is c a s e , th e D e p a r tm e n t o f J u s tic e o b s e rv e d th a t p e rm ittin g th e la rg e D e n v e rb a s e d h o ld in g c o m p a n ie s to e x p a n d to th e w e s te rn slo p e in C o lo r a d o th r o u g h a c q u is itio n o f th e s tro n g e s t in d e p e n d e n t b a n k s in th a t a re a w o u ld s e rv e to d e te r th e d e v e lo p m e n t o f a d d itio n a l b a n k in g a lte rn a tiv e s in th e s e lo c a l m a rk e ts . W e c o n c u r w ith th a t v ie w . A n y n e w b a n k th a t m a y b e o r g a n iz e d in S te a m b o a t S p rin g s w ill h a v e an u p h ill s tru g g le in th e fa c e o f B a n k ’s a lre a d y d o m in a n t p o s itio n . U p o n a c q u is itio n o f B a n k b y A p p lic a n t, B a n k ’s p r e s e n t d o m in a n c e w ill b e g re a tly r e in f o r c e d , th u s m a k in g e v e n m o re u n c e rta in th e p ro s p e c ts fo r m e a n in g fu l c o m p e titio n d e v e lo p in g in th e f o r e s e e a b le fu tu re in S te a m b o a t S p rin g s fro m a n e w ly e s ta b lis h e d b a n k . In o u r ju d g m e n t, th e s e p o te n tia l a d v e rs e e ffe c ts a re n o t o u tw e ig h e d b y a n y p u b lic b e n e fits th a t h a v e P o m p a n o B e a c h , F lo r id a , a b a n k h o ld in g c o m p a n y w ith in th e m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t, h a s a p p lie d fo r th e B o a r d ’s a p p ro v a l u n d e r § 3 (a )(3 ) o f th e A c t (1 2 U .S .C . 1 8 4 2 (a )(3 )) to a c q u ire 9 0 p e r c e n t o r m o re o f th e v o tin g s h a re s o f th e fo llo w in g fo u r F lo rid a b a n k s : (1) T h e In d ia n R iv e r C itru s B a n k , V e ro B e a c h ( “ In d ia n R iv e r B a n k ” ); (2) T h e W e s ts id e B a n k o f V e ro B e a c h , V e ro B e a c h ( “ W e s ts id e B a n k ” ), a n e w ly c h a r te re d b a n k , (3) T h e B e a c h B a n k o f V e ro B e a c h , V e ro B e a c h ( “ B e a c h B a n k ” ); a n d (4 ) T h e S e b a s tia n R iv e r B a n k , S e b a s tia n , ( “ S e b a s tia n B a n k ” ). N o tic e o f th e a p p lic a tio n s , a ffo rd in g o p p o rtu n ity fo r in te r e s te d p e r s o n s to s u b m it c o m m e n ts a n d v ie w s , h a s b e e n g iv e n in a c c o r d a n c e w ith § 3 (b ) o f th e A c t. T h e tim e fo r filin g c o m m e n ts a n d v ie w s h a s e x p ir e d , a n d th e B o a rd h a s c o n s id e r e d th e a p p lic a tio n a n d all c o m m e n ts re c e iv e d in lig h t o f th e fa c to r s se t fo rth in § 3 (c ) o f th e A c t (1 2 U .S .C . 1 8 4 2 (c )). A lth o u g h e a c h o f th e a p p lic a tio n s h a s b e e n s e p a ra te ly c o n s id e re d b y th e B o a rd , b e c a u s e o f th e fa c ts a n d c ir c u m s ta n c e s c o m m o n to th e fo u r a p p lic a tio n s , th is O rd e r c o n ta in s th e B o a r d ’s fin d in g s a n d c o n c lu s io n s w ith re s p e c t to all fo u r a p p li c a tio n s . A p p lic a n t c o n tro ls f o u r b a n k s w ith a g g re g a te d e p o s its o f a p p r o x im a te ly $ 1 4 5 m illio n , r e p r e s e n tin g 0 .8 p e r c e n t o f to ta l d e p o s its in c o m m e rc ia l b a n k s in F lo rid a a n d it is th e tw e n ty -firs t la rg e s t b a n k in g o rg a n iz a tio n in th e S t a t e . 1 A p p l i c a n t ’s a c q u is itio n o f In d ia n R iv e r B a n k (d e p o s its o f $ 5 2 m illio n ), W e s ts id e B a n k (a n e w ly c h a rte r e d b a n k ), B e a c h B a n k (d e p o s its o f $ 1 3 m illio n ), a n d S e b a s tia n B a n k ( d e p o s its o f $ 4 .4 m illio n ) w o u ld in c re a s e its s h a re o f S ta te w id e d e p o s its to s lig h tly m o re th a n 1 p e r c e n t a n d c h a n g e its ra n k a m o n g b a n k in g o r g a n iz a tio n s in F lo rid a to e ig h te e n th . A p p lic a n t’s a c q u is itio n o f o n ly In d ia n R iv e r B a n k a n d W e s ts id e B a n k w o u ld in c re a s e its s h a re o f b e e n c ite d as lik e ly to re s u lt fro m th e a ffilia tio n o f B a n k w ith A p p lic a n t. W e b e lie v e th is a p p lic a tio n s h o u ld b e d e n ie d . s itio n s w o u ld n o t re s u lt in a n y s ig n ific a n t in c re a s e in th e c o n c e n tr a tio n o f b a n k in g re s o u r c e s in F lo rid a . F IR S T N A T IO N A L BA N KSH ARES F L O R I D A , I N C ., P O M P A N O B E A C H , F L O R ID A OF O r d e r A p p r o v i n g A c q u i s i t i o n o f Two B a n k s a n d D e n y i n g A c q u is it io n o f T w o B a n k s F irs t N a tio n a l B a n k s h a re s of F lo rid a , I n c ., S ta te w id e d e p o s its to a p p r o x im a te ly 1 p e r c e n t a n d it w o u ld ra n k n in e te e n th a m o n g F lo rid a b a n k in g o r g a n iz a tio n s . A p p ro v a l o f all th e p ro p o s e d a c q u i T h e fo u r b a n k s in v o lv e d a re lo c a te d in a n d se rv e th e I n d ia n R iv e r C o u n ty b a n k in g m a r k e t. A p p li c a n t ’s c lo s e s t e x is tin g s u b s id ia ry b a n k is lo c a te d a p p r o x im a te ly 100 m ile s fro m th e m a rk e t a re a in v o lv e d a n d n o n e o f A p p lic a n t’s p re s e n t s u b s i 1 Banking data are as of June 30, 1972, adjusted to reflect holding company acquisitions and formations approved through December 31, 1972. LAW DEPARTMENT d ia ry b a n k s c o m p e te to a n y s ig n ific a n t e x te n t w ith a n y o f th e p ro p o s e d s u b s id ia r y b a n k s . D u e to th e d is ta n c e s s e p a ra tin g th e in s titu tio n s , th e n u m b e r o f b a n k s in th e in te rv e n in g a re a , a n d F l o r i d a ’s r e s tr ic tio n s o n b ra n c h b a n k in g , it is u n lik e ly th a t a n y s ig n ific a n t c o m p e titio n b e tw e e n A p p lic a n t’s e x is tin g s u b s id ia r y b a n k s a n d th e p ro p o s e d s u b s i d ia rie s w o u ld d e v e lo p in th e fu tu re . B e a c h B a n k , c o n tr o llin g 1 4 .4 p e r c e n t o f d e p o s its in th e r e le v a n t m a r k e t, a n d S e b a s tia n B a n k , c o n tr o llin g a p p r o x im a te ly 5 p e r c e n t o f d e p o s its in th e r e le v a n t m a r k e t, a re , r e s p e c tiv e ly , th e th ird a n d fo u rth la rg e s t o f f o u r e x is tin g b a n k s in th a t m a rk e t. B e a c h B a n k , S e b a s tia n B a n k a n d W e s tsid e B a n k w e re all o rg a n iz e d u n d e r th e a u s p ic e s o f In d ia n R iv e r B a n k , w h ic h is th e la rg e s t o f th e fo u r e x is tin g b a n k s in th e r e le v a n t m a r k e t, c o n tro llin g a p p r o x im a te ly 58 p e r c e n t o f d e p o s its . D u e to c o m m o n s h a re o w n e r s h ip , c o m m o n m a n a g e m e n t, a n d in te r lo c k in g d ir e c to r re la tio n s h ip s a m o n g I n d ia n R iv e r B a n k , B e a c h B a n k , a n d S e b a s tia n B a n k , th e re is little c o m p e titio n a m o n g th e th re e b a n k s . In d ia n R iv e r B a n k a n d its a ffiliates a re th e d o m in a n t b a n k in g o r g a n iz a tio n in th e m a r k e t w h ic h is h ig h ly c o n c e n tr a te d . T o g e th e r , th e y c o n tro l a p p r o x im a te ly 7 7 p e r c e n t o f d e p o s its in th e m a rk e t. T h e re is o n ly o n e o th e r b a n k in th e m a rk e t. In a d d itio n to th e f o u r e x is tin g b a n k s in th e re le v a n t m a r k e t a n d W e s ts id e B a n k , a n o th e r h o l d in g c o m p a n y h a s r e c e iv e d a p p r o v a l to e s ta b lis h a d e n o v o b a n k in th e m a rk e t. T w o a p p lic a tio n s b y h o ld in g c o m p a n ie s to c h a r te r d e n o v o n a tio n a l b a n k s in th e m a rk e t h a v e re c e n tly b e e n d e n ie d b y th e C o m p tr o lle r o f th e C u r re n c y . A c c o r d in g ly , d e n o v o e n tr y in to th e m a rk e t b y o th e r b a n k in g o r g a n iz a tio n s s e e m s f o r e c lo s e d at p r e s e n t. T h e r e f o r e , A p p lic a n t’s a c q u is itio n o f all f o u r b a n k s w o u ld p re c lu d e e n try b y o th e r b a n k in g o r g a n iz a tio n s in to th e I n d ia n R iv e r C o u n ty b a n k in g m a r k e t, w o u ld m a k e p e r m a n e n t th e n e a r m o n o p o ly th a t th e In d ia n R iv e r B a n k a n d its a ffilia te s e n jo y in th e m a r k e t, a n d w o u ld fo re c lo s e th e p o s s ib ility o f p o te n tia l c o m p e titio n d e v e lo p in g a m o n g a n y o n e o r m o re o f th e fo u r b a n k s in v o lv e d . U n d e r th e s e c ir c u m s ta n c e s , th e B o a rd d o e s n o t b e lie v e th a t a p p ro v a l o f all fo u r o f th e p ro p o s e d a c q u is itio n s w o u ld b e ju s tifie d , u n d e r th e s ta n d a rd s o f th e A c t, a b s e n t c o m p e llin g c o n s id e r a tio n s b e a rin g u p o n th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s in v o lv e d . A lth o u g h A p p lic a n t’s a c q u is itio n o f I n d ia n R iv e r B a n k w o u ld re s u lt in A p p lic a n t c o n tr o llin g th e la r g e s t b a n k in th e m a rk e t, su c h a c q u is itio n w o u ld a ls o b re a k th e e x is tin g a ffilia tio n a m o n g th e 363 fo u r b a n k s a n d re s u lt in a d e c o n c e n tr a tio n o f b a n k in g re s o u rc e s in th e m a rk e t. S in c e A p p lic a n t is p re s e n tly th e tw e n ty -firs t la r g e s t o f tw e n ty -fiv e e x is tin g h o ld in g c o m p a n ie s in F lo r id a , it w o u ld a p p e a r p r e fe r a b le , fro m a c o m p e titiv e s ta n d p o in t, to p e r m it a r e la tiv e ly s m a ll b a n k h o ld in g c o rp p a n y to a c q u ire In d ia n R iv e r B a n k a n d th e r e b y f o s te r c o m p e titio n in th e m a rk e t a n d o n a S ta te w id e b a s is . F u r th e r , A p p lic a n t h a s c o m m itte d th a t it w ill in c re a s e I n d ia n R iv e r B a n k ’s c a p ita l b y $1 m illio n w ith in six m o n th s fro m c o n s u m m a tio n o f th e p ro p o s e d a c q u is itio n a n d , t h e r e f o r e , b a n k in g f a c to rs le n d w e ig h t to w a rd a p p ro v a l o f su c h a c q u i s i tio n . A p p lic a n t’s a c q u is itio n o f B e a c h B a n k a n d S e b a s tia n B a n k , in a d d itio n to its a c q u is itio n o f In d ia n R iv e r B a n k , w o u ld h a v e s ig n ific a n t a n ti c o m p e titiv e c o n s e q u e n c e s . T h e e x is tin g a ffilia tio n a m o n g th e b a n k s w o u ld b e c o m e m o re p e r m a n e n t w ith in a h o ld in g c o m p a n y s tr u c tu r e , d e c o n c e n t r a tio n o f b a n k in g r e s o u r c e s in th e r e le v a n t m a rk e t w o u ld b e c o m e v e ry u n lik e ly , s in c e it a p p e a rs thatj th e re a re sig n ific a n t b a r rie rs fo r e n tr y in to tfie m a rk e t b y o th e r b a n k in g o rg a n iz a tio n s , a n d 'l h e p o s s ib ility o f s ig n ific a n t c o m p e titio n d e v e lo p in g a m o n g th e th re e b a n k s w o u ld b e f o r e c lo s e d . T h e a c q u is itio n b y A p p lic a n t o f W e s ts id e B a n k , in a d d itio n to In d ia n R iv e r B a n k , w o u ld n o t in v o lv e s ig n ific a n t a n tic o m p e titiv e e ffe c ts , s in c e W e s ts id e B a n k is a r e c e n tly c h a rte r e d b a n k th a t h a s n o t y e t c o m p e te d in th e m a r k e t. T h e fin a n c ia l a n d m a n a g e ria l re s o u r c e s o f A p p lic a n t, its e x is tin g s u b s id ia r y b a n k s , a n d B a n k s a re c o n s is te n t w ith a p p r o v a l o f all f o u r a p p li c a tio n s , p a r tic u la r ly in v ie w o f A p p lic a n t’s c o m m i t m e n t to in c re a s e In d ia n R iv e r B a n k ’s c a p ita l b y $1 m illio n w ith in six m o n th s fro m c o n s u m m a tio n o f s u c h a c q u is itio n . H o w e v e r , fin a n c ia l a n d m a n a g e ria l c o n s id e r a tio n s d o n o t o u tw e ig h th e a n ti c o m p e titiv e e ffe c ts in v o lv e d in A p p l i c a n t ’s p r o p o s a ls to a c q u ire B e a c h B a n k a n d S e b a s tia n B a n k . C o n s id e ra tio n s r e la tin g to th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s to b e s e r v e d a re a ls o c o n s is te n t w ith a p p ro v a l o f all fo u r a p p lic a tio n s , b u t d o n o t o u tw e ig h th e p r e v io u s ly c ite d a d v e rs e e ffe c ts w ith r e s p e c t to B e a c h B a n k a n d S e b a s tia n B ank. In s u m m a r y , it is th e B o a r d ’s c o n c lu s io n th a t a p p ro v a l o f all fo u r a p p lic a tio n s w o u ld h a v e th e e ffe c t o f s u b s ta n tia lly f o r e c lo s in g fu tu re c o m p e t i tio n in th e In d ia n R iv e r C o u n ty b a n k in g m a rk e t. H o w e v e r , a c q u is itio n o f In d ia n R iv e r B a n k a n d W e s ts id e B a n k w o u ld b e in th e p u b lic in te r e s t sin c e it w o u ld r e s u lt in d is a ffilia tio n o f a n e a r FEDERAL RESERVE BULLETIN □ MAY 1973 364 m o n o p o ly in th e m a rk e t a n d p ro m o te d e c o n c e n tra tio n o f b a n k in g r e s o u rc e s in th e m a rk e t. A c c o r d in g ly , it is th e B o a r d ’s ju d g m e n t th a t c o n s u m m a tio n o f th e p ro p o s e d a c q u is itio n s o f In d ia n R iv e r B a n k a n d W e s ts id e B a n k w o u ld b e in th e p u b lic in te r e s t a n d th a t th o s e tw o a p p lic a tio n s s h o u ld b e a p p r o v e d ; a n d th a t c o n s u m m a tio n o f th e p r o p o s e d a c q u is itio n s o f B e a c h B a n k a n d S e b a s tia n B a n k w o u ld n o t b e in th e p u b lic in te re s t a n d th a t th o s e tw o a p p lic a tio n s s h o u ld b e d e n ie d . O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n s to a c q u ire B e a c h B a n k a n d S e b a s tia n B a n k a re d e n ie d a n d th e a p p lic a tio n s to a c q u ire In d ia n R iv e r B a n k a n d W e s ts id e B a n k a re a p p ro v e d fo r th e re a s o n s s u m m a riz e d a b o v e . T h e tr a n s a c tio n s in v o lv in g I n d ia n R iv e r B a n k a n d W e s ts id e B a n k sh a ll n o t b e c o n s u m m a te d (a ) b e fo re th e th irtie th c a le n d a r d a y fo llo w in g th e e f fe c tiv e d a te o f th is O r d e r o r (b) la te r th a n th re e m o n th s a fte r th a t d a te , a n d (c) T h e W e s ts id e B a n k o f V e ro B e a c h , V e ro B e a c h , F lo r id a , sh a ll b e o p e n e d fo r b u s in e s s n o t la te r th a n six m o n th s a f te r th e e ffe c tiv e d a te o f th is O rd e r. E a c h o f th e p e rio d s d e s c rib e d in (b ) a n d (c ) m a y be e x te n d e d fo r g o o d c a u s e b y th e B o a rd , o r b y th e F e d e ra l R e s e r v e B a n k o f A tla n ta p u rs u a n t to d e le g a te d a u th o rity . B y o rd e r o f th e B o a rd o f G o v e r n o r s , e ffe c tiv e A p ril 19, 1 9 7 3 . Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. (S ig n e d ) T y n a n S m i t h , [s e a l] S e c r e t a r y o f th e B o a r d . O RDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT BANKERS TRU ST NEW YORK C O R P O R A T IO N , NEW YO RK, NEW YORK O r d er D e n y in g P r o po s a l t o A c t I n v e s t m e n t A d v is e r as a n B a n k e rs T ru s t N e w Y o rk C o r p o r a tio n , N e w Y o r k , N e w Y o rk ( “ B T N Y C ” ), a b a n k h o ld in g c o m p a n y w ith in th e m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t, h a s p ro p o s e d u n d e r § 4 (c )(8 ) o f th e A c t a n d § 2 2 5 .4 ( b ) ( 1 ) o f th e B o a r d ’s R e g u la tio n Y , to e n g a g e in d ire c tly d e n o v o in th e p e r fo r m a n c e o f c e rta in in v e s tm e n t a d v is o r y a c tiv itie s , th ro u g h B T I n v e s tm e n t M a n a g e r s , I n c ., P a lm B e a c h , F lo rid a ( “ B T I M ” ), a w h o lly - o w n e d s u b s id ia ry o f B T N Y C . N o tic e o f th e p r o p o s a l, a ffo rd in g o p p o r tu n ity fo r in te re s te d p e r s o n s to e x p r e s s o r s u b m it c o m m e n ts a n d v ie w s o n th e p r o p o s a l, h a s b e e n p u b lis h e d ( S e p te m b e r 2 5 , 1 9 7 2 , T h e W a l l S t r e e t J o u r n a l a n d S e p te m b e r 2 6 , 1 9 7 2 , W e s t P a lm B e a c h C o m m e r c i a l R e c o r d ) in a c c o r d a n c e w ith § 2 2 5 .4 (b ) ( 1 ) o f th e B o a r d ’s R e g u la tio n Y . T h e tim e fo r filin g c o m m e n ts a n d v ie w s h a s e x p ir e d , a n d all th o s e r e c e iv e d , in c lu d in g th o s e o f th e C o m p tr o lle r o f F lo r id a , th e F lo rid a B a n k e rs A s s o c ia tio n , a n d th e P a lm B e a c h C o u n ty B a n k e r s A s s o c ia tio n , I n c ., h a v e b e e n c o n s id e r e d in lig h t o f th e f a c to rs se t fo rth in § 4 ( c )( 8 ) o f th e A c t (1 2 U .S .C . 1 8 4 3 (c )(8 )). A m o n g th o s e le tte rs c o m m e n tin g o n th e p r o p o s a l w e re r e q u e s ts f o r a h e a r in g ; th o s e p e r s o n s s e e k in g a h e a r in g w e re a s k e d w h a t s u b sta n tia l is s u e s o f m a te ria l fa c t, if a n y , w e re p r e s e n te d b y th e in s ta n t p r o p o s a l a n d w h y a n y is s u e s ra is e d c o u ld n o t b e re s o lv e d b y th e s u b m is s io n o f w ritte n c o m m e n ts . P rio r to re c e ip t o f r e s p o n s e s to th e s e q u e s tio n s , th e B o a rd w a s a p p ris e d th a t, o n N o v e m b e r 3 0 , 1 9 7 2 , th e F lo rid a L e g is la tu re e n a c te d le g is la tio n 1 th a t b e c a m e e ffe c tiv e o n D e *The legislation amended section 659.141 of the F lorida Statutes. Section 659.141, as amended, provides, in pertinent part: 659.141(1) Control; ownership.— (1) Except as provided in subsection (3) of this section, no bank, trust company, or holding company, the operations of which are principally conducted outside this State, shall ac quire, retain, or own, directly or indirectly, all or substantially all the assets of, or control over, any bank or trust company having a place of business in this State where the business of banking, or trust business or functions are conducted, or acquire, retain or own all or substantially all of the assets of, or control over, any business organization having a place of business in this State where or from which it furnishes invest ment advisory services in this State. However, if a bank, trust company, or holding company directly or indirectly owning all or substantially all the assets of, or having control over, a bank or a trust company or business organization to which the restrictions and prohibitions of this section apply, having acquired such assets or control prior to becoming disqualified hereunder, shall, on or after the effective date of this section, be or become disqualified hereunder to acquire, retain or own the same, the restrictions and prohibitions of this section shall not be enforced against it for a period which, under all the circumstances, is determined by the department to be reas onable, not exceeding two years from the effective date of this Act or from the date it becomes disqualified hereunder, whichever is later, unless said period of two years is extended by the department as herein provided. The department is authorized, upon a showing of undue hardship, to extend said period of two years from time to time if the department determines that any such extension would not be detrimental to the public interest, but any such extension shall not exceed one year and all thereof shall not in the aggregate exceed three years. * * * (2) . . . (c) A business organization provides investment advisory services if, in this State for compensation, it engages in the business of advising persons, as defined in § 1.01(3), Florida Statutes, either directly or indirectly or through publications or writings, as to the value of securities or as to the advisability of investment in or purchasing securities, or if, not being a certified public accountant, in this State and for compensation, it issues or distributes to persons, as defined in § 1.01(3), Florida Statutes, analyses or reports concerning securities. LAW DEPARTMENT c e m b e r 2 1 , 1 9 7 2 . S u b s e q u e n tly , th e B o a rd e n te r ta in e d b rie fs a n d w ritte n a r g u m e n t o n th e issu e o f th e a p p lic a b ility a n d e ffe c t o f th e a m e n d e d s ta tu te o n th e in s ta n t p r o p o s a l fro m th o s e p e r s o n s th a t h a d re q u e s te d to b e h e a rd . A b s e n t th e r e c e n t e n a c tm e n t o f a m e n d m e n ts to s e c tio n 6 5 9 .1 4 1 a n d a n y e v id e n c e in d ic a tin g th a t d e n o v o e n try in th is c a s e w o u ld h a v e th e p u rp o s e o r e ffe c t o f fo r e c lo s in g fu tu re c o m p e titio n o r w o u ld o th e r w is e b e c o n tra ry to th e p u b lic i n te r e s t,2 it a p p e a rs lik e ly th a t th e B o a rd w o u ld h a v e a p p ro v e d th e in s ta n t p ro p o s a l. T h e B o a rd r e c o g n iz e s , a s h a s C o n g r e s s , “ th a t a n a c tiv ity c o m m e n c e d d e n o v o w ill te n d to h a v e p r o - c o m p e titiv e e f fe c ts , a n d c o n s e q u e n tly s h o u ld b e v ie w e d m o re f a v o ra b ly th a n th e c o m m e n c e m e n t o f an a c tiv ity th ro u g h th e a c q u is itio n o f an e x is tin g c o n c e r n ” 3 a n d “ w h e re a b a n k h o ld in g c o m p a n y e n te rs a n e w m a rk e t d e n o v o . . . , its d e s ir e to s u c c e e d in its n e w e n d e a v o r is m o re lik e ly to b e c o m p e t it i v e .” 4 H o w e v e r, w h ile th e in s ta n t p ro p o s a l w a s p e n d in g b e fo re th e B o a rd , th e F lo rid a S ta tu te s w e re a m e n d e d to g e n e ra lly p r o h ib it th e p ro v is io n o f in v e s tm e n t a d v i s o ry s e rv ic e s in F lo rid a b y n o n -F lo r id a - b a s e d b a n k h o ld in g c o m p a n ie s th r o u g h c o n tro l o f b u s in e s s o r g a n iz a tio n s h a v in g o ffice s in F lo rid a . T h e le g is la tio n f u rth e r p ro v id e s h o w e v e r th a t th e re s tric tio n s a n d p r o h ib itio n s c o n ta in e d th e re in sh a ll n o t b e e n f o rc e d fo r a p e rio d o f tim e r a n g in g u p to five y e a rs a g a in s t a n y h o ld in g c o m p a n y w h ic h , p rio r to th e e f fe c tiv e d a te o f su c h le g is la tio n , a c q u ire d c o n tro l o v e r a b u s in e s s o r g a n iz a tio n to w h ic h th e r e s tr ic tio n s o r p ro h ib itio n s o f th e s ta tu te a p p ly . T h e re a p p e a rs to b e ta c it a g r e e m e n t th a t th e r e c e n tly - e n a c te d le g is la tio n w a s in te n d e d to , a n d d o e s , p ro h ib it th e p e r fo r m a n c e o f in v e s tm e n t a d v is o ry s e r v ic e s in F lo r id a b y n o n - F lo r id a b a n k h o ld in g c o m p a n ie s . H o w e v e r , B T N Y C h a s c o n te n d e d th a t, u n d e r th e “ g r a n d f a t h e r ” p ro v is io n in th e s ta tu te , B T IM m a y o p e n fo r b u s in e s s a n d e n g a g e in th e p r o v is io n o f in v e s tm e n t a d v is o ry s e rv ic e s fo r a p e rio d o f a p p r o x im a te ly tw o y e a rs . T h e p ro te s ta n ts to th e p r o p o s a l, w ith th e c o n c u r re n c e o f th e C o m p tr o lle r o f F lo r id a , h a v e c o n 2See the Board’s Order of March 6, 1973, denying the application of First at Orlando Corporation to acquire shares of Citrus First National Bank of Leesburg, 38 F ederal R eg iste r 6317 (March 8, 1973) and the Board’s Statement accompany ing its Order of March 9, 1973 approving, to the extent permitted by State law, the proposal of NCNB Corporation to engage in certain trust activities in South Carolina through American Trust Company, 1973 Federal Reserve B u lle tin 305. 35. R ep. No. 91-1084, 91st Cong., 2d Sess. 16 (1970). 4H. R. R ep. No. 91-1747, 91st Cong., 2d Sess. 17 (1970). 365 te n d e d th a t th e “ g r a n d f a t h e r ” b e n e fit, c o n fe rre d b y th e n e w ly - e n a c te d le g is la tio n , is n o t a v a ila b le to B T N Y C o r B T IM . H o w e v e r , a s s u m in g , w ith o u t d e c id in g , th a t th e c o n s tr u c tio n g iv e n th e “ g r a n d f a th e r ” p ro v is io n b y B T N Y C is c o r r e c t, th e B o a rd p e r c e iv e s , as a p o s s ib le a d v e rs e e f fe c t o f th e in sta n t p r o p o s a l, th e in d e fin ite a n d te m p o r a r y n a tu re o f B T l M ’s p e r fo r m a n c e o f in v e s tm e n t a d v is o ry s e rv ic e s . T h e p u b lic is ill- s e rv e d b y a firm o ff e r in g in v e s tm e n t a d v is o ry s e rv ic e s th a t m a y , b y la w , h a v e to b e te rm in a te d w ith in a re la tiv e ly s h o rt tim e p e rio d . C u s to m e rs e n te r in g in to c o n tr a c ts fo r su c h s e r v ic e s w o u ld g e n e r a lly d o so in r e lia n c e u p o n th e c o n tin u in g a n d lo n g -te r m n a tu re o f s u c h s e r v ic e s. In a n o th e r s e n s e , o n e m a y q u e s tio n th e v ig o r w ith w h ic h a n e n tr a n t in to a m a r k e t w ill c o m p e te a n d th e q u a lity o f th e s e r v ic e s it w ill o ff e r , if its e m p lo y e e s a re b u r d e n e d b y th e re a liz a tio n th a t, irre s p e c tiv e o f th e ir p e r f o r m a n c e , th e ir d u ty is o n ly t e m p o ra r y a n d th e o ffice m a y b e c lo s e d a t a n y tim e . H o w e v e r , in v ie w o f th e d is p o s itio n o f th e in s ta n t p r o p o s a l o n o th e r g r o u n d s , th e B o a rd is n o t re q u ire d to d e c id e at th is tim e w h e th e r th e p o s s ib ility o f s u c h a n a d v e rs e e ffe c t is o f su ffic ie n t w e ig h t a s to o u tw e ig h th e p u b lic b e n e fits th a t m a y r e a s o n a b ly be e x p e c te d to d e riv e fro m th e in s ta n t p r o p o s a l, n o ta b ly th e in c re a s e d c o m p e titio n p r o b a b ly r e s u ltin g fro m d e n o v o e n try . In a d d itio n to th e fa c to rs th a t th e B o a rd is , b y s ta tu te , re q u ir e d to c o n s id e r , th e B o a rd , in a n y p a r tic u la r c a s e , m u s t d e te r m in e w h e th e r th e p r o p o s a l w o u ld b e p r o h ib ite d b y S ta te la w . If th e p ro p o s a l w o u ld be so p ro h ib ite d , th e B o a rd m a y n o t a p p r o v e i t . 5 In m a k in g su c h a d e te r m in a tio n , th e B o a rd w ill p re s u m e th e c o n s titu tio n a l v a lid ity o f a n y p e r tin e n t S ta te s t a tu t e .6 T h e in te rp r e ta tio n a n d c o n s tr u c tio n o f c o n tr o v e r te d S ta te s ta tu te s is a ta s k th a t is n o t e a g e r ly u n d e r ta k e n b y th e B o a rd . C e r ta in ly , th e c o u rts o f F lo r id a a re a m o re a p p r o p ria te fo ru m f o r th e re s o lu tio n o f d is p u te d q u e s tio n s o f F lo rid a la w , th a n is th e B o a rd . N e v e r th e le s s , th e B o a rd b e lie v e s th a t th e p rin c ip le la id d o w n b y th e S u p re m e C o u rt in th e W h i t n e y c a s e r e q u ir e s th e B o a rd to in itia lly re s o lv e th e le g a l issu e p r e s e n te d h e re . T h e is s u e w h ic h is d e te r m in a tiv e o f th e in s ta n t p r o p o s a l is w h e th e r th e “ g r a n d f a t h e r ” p r o v is io n 5 W hitney N ation al Bank in Jefferson Parish v. B ank o f N ew O rleans & Trust C o ., 379 U.S. 411 (1965). 6See Statement accompanying the Board’s Order of March 9, 1973, approving, to the extent permitted by State law, the proposal of NCNB Corporation, Charlotte, North Carolina, to operate a trust company in South Carolina through American Trust Company, 1973 Federal Reserve B ulletin 305. 366 o f th e re c e n tly - e n a c te d le g is la tio n e ffe c tiv e ly p e r m its B T N Y C to in itia te in v e s tm e n t a d v is o r y s e r v ic e s f ro m a F lo rid a o ffic e , a lb e it fo r an in d e fin ite a n d te m p o ra r y p e rio d o f tim e . B T N Y C s ta te s , a n d , th e B o a rd fin d s th a t B T IM w a s in c o r p o r a te d in th e S ta te o f D e la w a re o n N o v e m b e r 2 4 , 1 9 7 2 , at th e d ire c tio n o f B T N Y C , a n d th a t, o n N o v e m b e r 2 7 , 1 9 7 2 , B T IM q u a lifie d w ith th e S e c re ta r y o f S ta te o f F lo r id a to d o b u s in e s s in F lo rid a . H o w e v e r , B T N Y C h a s n o t a lle g e d th a t B T IM , a t a n y tim e , h a s h a d a p la c e o f b u s in e s s in F lo rid a o r th a t B T IM h a s fu r n is h e d in v e s tm e n t a d v is o r y s e rv ic e s in F lo r id a . N o r c o u ld B T IM le g a lly h a v e d o n e s o , th e p r io r a p p ro v a l o f th e B o a rd n o t h a v in g b e e n s e c u re d b y B T N Y C . It is n o t c o n te n d e d th a t B T IM is e ith e r a b a n k o r tru s t c o m p a n y . O n th e b a s is o f th e s e f a c ts , B T N Y C c o n te n d s , a n d th e p r o te s ta n ts d o n o t c o n te n d o t h e r w is e , th a t B T IM is a “ b u s in e s s o r g a n iz a tio n ” ; th a t B T N Y C h a s “ c o n tr o l ” o v e r B T IM a n d h a d a c q u ir e d th a t c o n tro l p r io r to b e c o m in g d is q u a lifie d u n d e r th e n e w ly - e n a c te d le g is la tio n . T h e p r o te s ta n ts , o n th e o th e r h a n d , c o n te n d th a t, irr e s p e c tiv e a s to w h e th e r B T IM is a “ b u s in e s s o r g a n iz a t i o n ” o r w h e th e r B T N Y C c o n tr o lle d B T IM p rio r to th e e ffe c tiv e d a te o f th e a m e n d m e n t, B T N Y C is n o t e n title d to “ g r a n d f a t h e r ” b e n e fits b e c a u s e B T IM d id n o t fu r n is h in v e s tm e n t a d v is o r y s e r v ic e s in F lo rid a fro m a p la c e o f b u s in e s s in F lo rid a o n th e e ffe c tiv e d a te o f th e le g is la tio n . In th e B o a r d ’s o p in io n , th e c o n c lu s io n is in e s c a p a b le th a t th e “ g r a n d f a t h e r ” p r o v is io n o f th e le g is la tio n o n ly a p p lie s to a b a n k , tru s t c o m p a n y o r b u s in e s s o r g a n iz a tio n “ h a v in g a p la c e o f b u s in e s s in [F lo rid a ] w h e re o r fro m w h ic h it f u r n is h e s in v e s tm e n t a d v is o r y s e rv ic e s in [ F lo r id a ] ” o n th e e f fe c tiv e d a te o f th e le g is la tio n . S in c e B T IM is n e ith e r a b a n k o r a tru s t c o m p a n y , a n d d id n o t h a v e o n th a t d a te a p la c e o f b u s in e s s in F lo r id a w h e r e o r fro m w h ic h it fu r n is h e d o r p ro v id e d in v e s tm e n t a d v is o r y s e r v ic e s , th e B o a rd c o n c lu d e s , as a m a tte r o f la w , th a t B T N Y C is n o t e n title d to th e b e n e fits o f th e “ g r a n d f a t h e r ” p r o v is io n in s e c tio n 6 5 9 .1 4 1 . F u r th e r m o r e , th e le g is la tiv e h is to ry o f th e le g is la tio n e v id e n c e s a le g is la tiv e in te n t to e x c lu d e B T N Y C fro m e n g a g in g in th e p r o v is io n o f in v e s t m e n t a d v is o r y s e r v ic e s in F lo rid a fro m a F lo rid a office. In v ie w o f th e c o n flic tin g c o n s tr u c tio n s g iv e n th e “ g r a n d f a t h e r ” p r o v is io n , th e B o a rd b e lie v e s th a t a n e x a m in a tio n o f th e le g is la tiv e h is to ry o f th e le g is la tio n is a p p r o p ria te to a s c e rta in th e le g is la tiv e in te n t. It is b e y o n d q u e s tio n , a n d B T N Y C a n d th e p r o te s ta n ts a re in a g r e e m e n t, th a t th e n o tic e th a t B T N Y C p u b lis h e d in S e p te m b e r, FEDERAL RESERVE BULLETIN □ MAY 1973 1 9 7 2 , trig g e re d th e a c tio n o f th e F lo r id a L e g is la tu re in th is c a s e a n d th a t th e n e w ly -e n a c te d l e g is la tio n w a s p rim a rily m o tiv a te d b y th e th re a t o f B T N Y C ’s e n try in to th e F lo rid a in v e s tm e n t a d v i s o ry m a rk e ts a n d w a s in te n d e d to p r e v e n t su c h e n try . A c c o r d in g ly , th e B o a rd c o n c lu d e s th a t, th e “ g r a n d f a t h e r ” p r o v is io n w a s n o t in te n d e d to p e r m it th e in s ta n t p r o p o s a l, e v e n fo r a lim ite d p e rio d o f tim e . B T N Y C , b e s id e s c o n te n d in g th a t th e B o a rd s h o u ld re fr a in fro m c o n s tr u in g th e n e w ly -e n a c te d F lo r id a le g is la tio n , c o n te n d s th a t th e y a re e n title d to “ g r a n d f a th e r ” b e n e fits b e c a u s e th e “ g r a n d f a t h e r ” p r o v is io n , w h ic h a u th o riz e s th e F lo rid a B a n k in g D e p a r tm e n t to d e te r m in e th e le n g th o f tim e d u r in g w h ic h th e s ta tu te sh a ll n o t b e e n fo rc e d a g a in s t a c o m p a n y e n title d to “ g r a n d f a t h e r ” b e n e fits, c o n s titu te s an u n c o n s titu tio n a l d e le g a tio n o f a u th o rity to th a t a g e n c y . A s th e B o a rd h a s p r e v io u s ly in d ic a te d , it w ill p re s u m e th e c o n s t i tu tio n a l v a lid ity o f S ta te s ta tu te s . B T N Y C ’s c h a l le n g e to th e c o n s titu tio n a lity o f a n y p ro v is io n o f th e r e c e n tly - e n a c te d F lo rid a le g is la tio n is p ro p e rly c o g n iz a b le o n ly b y th e ju d ic ia r y . In b rie f , sin c e th e B o a rd is o f th e o p in io n th a t th e p ro p o s a l is p ro h ib ite d b y S ta te la w , it b e lie v e s th a t, u n d e r th e d o c tr in e se t fo rth b y th e U .S . S u p re m e C o u rt in W h i t n e y , it m u st d e n y th e p ro p o s a l. T h e B o a rd is n o t u n s y m p a th e tic w ith B T N Y C w h e n th a t h o ld in g c o m p a n y q u e s tio n s “ th e fa ir n e s s a n d le g a lity o f a p r o c e d u r e w h e re b y p r o p o n e n ts o f th is le g is la tio n c o u ld p r e v e n t [its] p r o p o sa l fro m b e c o m in g e f fe c tiv e b y filin g o b je c tio n s w ith th e B o a rd a n d r e q u e s tin g a h e a rin g a n d th e n , a fte r h a s ty e n a c tm e n t o f le g is la tio n , a rg u e th a t th is v e ry le g is la tio n s h o u ld b e th e b a s is fo r th e B o a rd to b a r a p p ro v a l o f [its] p r o p o s a l . ” T h e re is s u b s ta n tia l e v id e n c e th a t th e c e le r ity w ith w h ic h th e le g is la tio n w a s e n a c te d is d ir e c tly a ttr ib u ta b le to th e p e n d e n c y o f th e in s ta n t p ro p o s a l b e fo re th e B o a rd . H o w e v e r , s e c tio n 7 7 o f th e A c t e x p re s s ly re s e rv e s to th e S ta te s th e a u th o rity to a d o p t le g is la tio n in th e e x e r c is e o f th e ir p o w e rs a n d j u r is d ic tio n w ith r e s p e c t to b a n k s , b a n k h o ld in g c o m p a n ie s , a n d th e ir s u b s id ia r ie s , a n d th e U .S . S u p re m e C o u r t in W h i t n e y e x p r e s s ly in s tru c te d th e B o a rd to c o n s id e r th e a p p lic a b ility a n d e ffe c t o f a n y s u c h le g is la tio n . A c c o r d in g ly , irre s p e c tiv e o f 7Section 7 of the Act provides: The enactment by the Congress of the Bank Holding Company Act of 1956 shall not be construed as preventing any State from exercising such powers and jurisdiction which it now has or may hereafter have with respect to banks, bank holding companies, and subsidiaries thereof. (12 U.S.C. 1846) LAW DEPARTMENT 367 a n y d o u b t th e B o a rd m a y e n te r ta in a s to th e w is d o m o r d e s ir a b ility o f a p a r tic u la r S ta te e n a c t m e n t, th e B o a rd m u s t, a n d w ill, r e s p e c t, a n d a c t in th e lig h t o f , p e r tin e n t S ta te le g is la tiv e ju d g m e n ts . B a s e d u p o n th e re c o rd a n d fo r th e re a s o n s e x p r e s s e d h e r e in , th e p ro p o s a l o f B T N Y C C o r p o ra tio n to p ro v id e in v e s tm e n t a d v is o ry s e rv ic e s in F lo r id a th r o u g h th e in s tr u m e n ta lity o f B T IM , is h e re b y d e n ie d . B y o rd e r o f th e B o a rd o f G o v e r n o r s , e ffe c tiv e A p ril 2 6 , 1 9 7 3 . Voting for this action: Vice Chairman Robertson and Gov ernors Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Mitchell. (S ig n e d ) C h e s t e r B . F e l d b e r g , [s e a l] A s s is ta n t S e c r e ta r y o f th e B o a r d . O R B A N C O , I N C ., PORTLAND, OREGON O r d e r A p p r o v in g A c q u is it io n S e c u r it ie s C o . of F ar W est O r b a n c o , I n c ., P o r tla n d , O r e g o n , a b a n k h o ld in g c o m p a n y w ith in th e m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t, h a s a p p lie d f o r th e B o a r d ’s a p p r o v a l, u n d e r s e c tio n 4 ( c )( 8 ) o f th e A c t a n d § 2 2 5 .4 (b ) ( 2 ) o f th e B o a r d ’s R e g u la tio n Y , to a c q u ir e ( th r o u g h its w h o lly o w n e d s u b s id ia r y , C o l u m b ia M o r tg a g e C o ., P o r tla n d , O r e g o n ( “ C o lu m b i a ” )) all o f th e v o tin g s h a re s o f F a r W e s t S e c u ritie s C o . , S p o k a n e , W a s h in g to n ( “ Far W e s t ” ), a c o m p a n y th a t e n g a g e s in m o r tg a g e b a n k in g a c tiv itie s . S u c h a c tiv itie s h a v e b e e n d e te r m in e d b y th e B o a rd to b e c lo s e ly re la te d to th e b u s in e s s o f b a n k in g (1 2 C F R 2 2 5 .4 ( a ) ( 1 ) ) . N o tic e o f th e a p p lic a tio n , a ffo rd in g o p p o r tu n ity fo r in te re s te d p e r s o n s to s u b m it c o m m e n ts a n d v ie w s o n th e p u b lic in te r e s t f a c to r s , h a s b e e n d u ly p u b lis h e d (3 7 F e d e ra l R e g is te r 2 4 3 9 Q ). T h e tim e fo r filin g c o m m e n ts a n d v ie w s h a s e x p ir e d , a n d th e B o a rd h a s c o n s id e r e d a ll c o m m e n ts r e c e iv e d in lig h t o f th e p u b lic in te r e s t f a c to rs se t fo rth in s e c tio n 4 ( c ) ( 8 ) o f th e A c t (1 2 U . S . C . 1 8 4 3 ( c ) ) .1 *Far West also sells insurance directly related to extensions of credit in its mortgage banking activities. Applicant sought to acquire the mortgage banking activities of Far West as well as the related insurance activities; however, in light of objec tions to these insurance activities, Applicant requested that the Board split the application into two separate parts. Accord ingly, the Board’s Order herein deals only with the proposed acquisition of Far West’s mortgage banking activities. Appli cant’s request for Board approval to engage in the aforemen tioned insurance activities is still pending. A p p lic a n t, a o n e b a n k h o ld in g c o m p a n y , c o n tro ls T h e O re g o n B a n k , P o r tla n d , O re g o n ( “ B a n k ” ), th e th ird la r g e s t b a n k in g o r g a n iz a tio n in O r e g o n w ith d e p o s its o f a b o u t $ 1 6 4 m illio n , r e p r e s e n tin g le s s th a n 4 p e r c e n t o f to ta l d e p o s its in c o m m e rc ia l b a n k s in th e Statfe.2 (T h e tw o la r g e s t b a n k in g o r g a n iz a tio n s in O r e g o n to g e th e r c o n tro l a p p r o x im a te ly 7 8 p e r c e n t o f a ll c o m m e rc ia l b a n k d e p o s its .) A p p lic a n t, th r o u g h B a n k a n d its n e w ly e s ta b lis h e d m o r tg a g e b a n k in g s u b s id ia r y , C o lu m b ia , e n g a g e s in th e s a m e lin e o f b u s in e s s a c tiv ity a s F a r W e s t; B a n k o p e r a te s 2 3 o ffice s t h r o u g h o u t th e S ta te o f O r e g o n w h ile C o lu m b ia lim its its m o r tg a g e a c tiv itie s to th e P o r tla n d a r e a . W ith th r e e o ffic e s, F a r W e s t s e r v e s S p o k a n e , B e n to n , a n d F r a n k lin C o u n tie s in e a s te r n W a s h in g to n S ta te . In 1 9 7 1 , F a r W e s t h e ld $ 1 9 m illio n in m o r tg a g e o r ig in a tio n s in S p o k a n e C o u n ty , o r a lm o s t 8 p e r c e n t o f th e to ta l m o r tg a g e s o r ig in a tin g in th e C o u n ty ; d u rin g th e first e ig h t m o n th s o f 1 9 7 2 , th e to ta l a m o u n t o f m o r tg a g e s o r ig in a te d b y F a r W e s t a m o u n te d to a b o u t $ 1 0 m illio n . A s o f S e p te m b e r 3 0 , 1 9 7 2 , F a r W e s t s e rv ic e d a m o r tg a g e lo a n p o r tf o lio o f $ 3 1 m illio n . O n th e b a s is o f th e fa c ts o f r e c o r d , it a p p e a r s th a t n e ith e r A p p lic a n t n o r F a r W e s t is a m a jo r c o m p e tito r in th e m o r tg a g e m a r k e ts o f O re g o n a n d W a s h in g to n , r e s p e c tiv e ly ; th a t th e s e rv ic e a re a s o f e a c h d o n o t o v e r la p , a n d th a t th e r e is n o d ir e c t c o m p e titio n b e tw e e n th e m . C o n s u m m a tio n o f th e p r o p o s e d tr a n s a c tio n w o u ld n o t e lim in a te a n y e x is tin g c o m p e titio n in e ith e r W a s h in g to n o r O re g o n . M o r e o v e r , A p p lic a n t a n d F a r W e s t a re n o t lik e ly to c o m p e te in th e n e a r fu tu r e d u e to th e ir r e la tiv e ly sm a ll s iz e s a n d th e in te r v e n in g d is ta n c e s . F u r th e r , it d o e s n o t a p p e a r th a t c o n s u m m a tio n h e r e in w o u ld a d d s ig n ific a n tly to th e e x is tin g le v e l o f m a r k e t c o n c e n tr a tio n o r r e s u lt in a n u n d u e c o n c e n tr a tio n o f fin a n c ia l re s o u rc e s in a n y m a rk e t. In a n a ly z in g th e fin a n c ia l c o n d itio n o f A p p li c a n t, th e B o a rd n o te s th a t A p p lic a n t h a s in c u rr e d s u b s ta n tia l d e b t in o rd e r to s u p p o r t th e le n d in g o p e ra tio n s o f its n o n - b a n k s u b s id ia r ie s , p r im a r ily th o s e o f N o r th w e s t A c c e p ta n c e C o r p o r a tio n , P o r t la n d , O r e g o n , a fin a n c e c o m p a n y e n g a g e d in c a p i tal g o o d s fin a n c in g . A lth o u g h A p p l i c a n t ’s o v e r a ll d e b t le v e l is re la tiv e ly h ig h in r e la tio n to o th e r b a n k h o ld in g c o m p a n ie s , A p p l i c a n t ’s s u b s id ia rie s a p p e a r to b e in s a tis fa c to ry fin a n c ia l c o n d itio n a n d A p p lic a n t’s e a rn in g s a p p e a r to b e su ffic ie n t to s e rv ic e th e d e b t. 2 All banking data are as of June 30, 1972, unless otherwise indicated. 368 It is a n tic ip a te d th a t a ffilia tio n w ith A p p lic a n t w ill p ro v id e F a r W e s t w ith a c c e s s to th e c a p ita l r e s o u r c e s o f A p p lic a n t, e n h a n c e its a b ility to p r o v id e la rg e r m o r tg a g e lo a n s , p e r m it e x p a n s io n o f its ra n g e o f s e r v ic e s , a n d th e re b y e n a b le it to c o m p e te m o re e f fe c tiv e ly in th e c o m p e titiv e m a r k e t it s e r v e s . T h e B o a rd c o n c lu d e s th a t th e s e p u b lic b e n e fits a re a p o s itiv e fa c to r in te rm s o f th e c o n v e n ie n c e a n d n e e d s o f th e p u b lic . In its c o n s id e r a tio n o f A p p lic a n t’s p ro p o s a l, th e B o a rd h a s c o n s id e r e d th e q u e s tio n w h e th e r a c o v e n a n t n o t to c o m p e te c o n ta in e d in a p ro p o s e d e m p lo y m e n t c o n tra c t b e tw e e n a b a n k h o ld in g c o m p a n y a n d a p rin c ip a l e x e c u tiv e a n d s h a r e h o ld e r o f a c o m p a n y (e n g a g e d in p e r m is s ib le a c tiv itie s ) a b o u t to b e a c q u ire d b y th e b a n k h o ld in g c o m p a n y is c o n tr a r y to th e p u b lic in te r e s t s ta n d a rd s th e B o a rd is r e q u ir e d to c o n s id e r u n d e r th e B a n k H o ld in g C o m p a n y A c t. H is to r ic a lly , in th e b u s i n e ss c o m m u n ity , c o v e n a n ts n o t to c o m p e te h a v e re p re s e n te d a le g itim a te b u s in e s s r e q u ir e m e n t o f p a r tie s to c o n tr a c ts fo r th e p u rc h a s e o f a b u s in e s s , a n d , a fte r h a v in g m e t th e g e n e r a l te s t o f r e a s o n a b le n e s s o f d u r a tio n , s c o p e , a n d g e o g r a p h ic a re a , h a v e b e e n s u s ta in e d b y c o u rts as le g a lly v a lid a n d e n f o rc e a b le . In v ie w o f th e lo n g h is to ry o f a c c e p ta b ility e n jo y e d b y s u c h c o v e n a n ts , as w e ll a s th e p o s itio n o f s u c h c o v e n a n ts u n d e r th e la w , th e B o a rd fin d s th a t s u c h c o v e n a n ts a re n o t c o n tra ry p e r s e to th e p u b lic in te r e s t. H o w e v e r , th e B o a rd sh a ll e x a m in e th e d e ta ils o f all e m p lo y m e n t c o n tra c ts th a t c o m e b e fo re it in c o n n e c tio n w ith a p p lic a tio n s u n d e r th e B a n k H o ld in g C o m p a n y A c t in o rd e r to d e te r m in e u n d e r th e fa c ts a n d c ir c u m s ta n c e s o f e a c h c a s e w h e th e r a p a r tic u la r c o v e n a n t n o t to c o m p e te is c o n s is te n t w ith th e p u b lic in te r e s t. H a v in g r e v ie w e d th e d e ta ils o f th e c o v e n a n ts n o t to c o m p e te in th e e m p lo y m e n t c o n tra c ts in v o lv e d in th is c a s e , th e B o a rd fin d s th a t th e ir p ro v is io n s a re c o n s is te n t w ith th e p u b lic in te r e s t, a n d th e e x is te n c e o f su c h c o v e n a n ts d o e s n o t re q u ire d e n ia l o f th e a p p lic a tio n . B a s e d u p o n th e f o re g o in g a n d o th e r c o n s id e ra tio n s re fle c te d in th e r e c o r d , th e B o a rd h a s d e te rm in e d th a t th e b a la n c e o f th e p u b lic in te re s t fa c to rs th e B o a rd is re q u ire d to c o n s id e r u n d e r se c tio n 4 (c )(8 ) is f a v o ra b le . A c c o r d in g ly , th e a p p lic a tio n is h e re b y a p p r o v e d . T h is d e te rm in a tio n is s u b je c t to th e c o n d itio n s se t fo rth in s e c tio n 2 2 5 .4 (c ) o f R e g u la tio n Y a n d to th e B o a r d ’s a u th o r ity to r e q u ir e s u c h m o d ific a tio n o r te r m in a tio n o f th e a c tiv itie s o f a h o ld in g c o m p a n y o r a n y o f its s u b s id ia rie s as th e B o a rd fin d s n e c e s s a ry to a s s u re c o m p lia n c e w ith th e p r o v is io n s a n d p u r FEDERAL RESERVE BULLETIN □ MAY 1973 p o s e s o f th e A c t a n d th e B o a r d ’s r e g u la tio n s a n d o rd e rs is s u e d th e r e u n d e r , o r to p re v e n t e v a s io n th e r e o f. B y o rd e r o f th e B o a rd o f G o v e r n o r s , e ffe c tiv e A p ril 2 6 , 197 3 . Voting for this action: Chairman Burns and Governors Daane, Sheehan, and Bucher. Voting against this action: Governors Robertson, Mitchell, and Brimmer. ( S ig n e d ) C h e s t e r B . F e l d b e r g , [s e a l] A s s i s t a n t S e c r e t a r y o f th e B o a r d . D is s e n t in g S t a t e m e n t o f G o v e r n o r s R o b e r t s o n a n d B r im m e r W e w o u ld d is a p p r o v e th e a p p lic a tio n b y O rb a n c o , I n c ., to a c q u ir e F a r W e s t S e c u r itie s C o m p a n y . O u r d e c is io n is b a s e d o n th e e x is te n c e o f c o v e n a n ts n o t to c o m p e te c o n ta in e d in th e p r o p o s e d e m p lo y m e n t c o n tr a c ts (w h ic h w o u ld b e c o m e e ffe c tiv e u p o n th e a c q u is itio n o f F a r W e s t b y O r b a n c o ) b e tw e e n F a r W e s t a n d tw o o f its p rin c ip a l e x e c u tiv e s a n d s h a r e h o ld e r s . E s s e n tia lly , th e c o n tra c ts p ro v id e th a t th e s e tw o in d iv id u a ls a g re e th a t, fo r w h a t a m o u n ts to a p e r io d o f te n y e a r s , e a c h o f th e m w ill n o t b e a s s o c ia te d w ith a n o th e r m o rtg a g e firm th a t m ig h t b e in c o m p e titio n w ith F a r W e s t. In e ffe c t, th e a g r e e m e n t p re c lu d e s th e p o s s ib ility th a t th e in d iv id u a ls in q u e s tio n m ig h t f o rm a n e w m o rtg a g e c o m p a n y th a t w o u ld p r o v id e an a lte rn a tiv e s o u rc e o f m o rtg a g e s e rv ic e s a n d s e rv e as a n a d d itio n a l c o m p e tito r to F a r W e s t. In o u r v ie w , su c h a g r e e m e n ts a re in c o n s is te n t w ith th e p ro m o tio n o f c o m p e titio n — as r e q u ire d u n d e r th e B a n k H o ld in g C o m p a n y A c t— a n d s h o u ld n o t b e s a n c tio n e d b y th e B o a rd . In a c tin g o n a n a p p lic a tio n b y a h o ld in g c o m p a n y to e x p a n d in to a n a re a th a t is c lo s e ly r e la te d to b a n k in g s u c h as m o rtg a g e b a n k in g , th e B o a rd is d ir e c te d b y th e A c t to d e te r m in e w h e th e r th e a c q u is itio n c a n re a s o n a b ly b e e x p e c te d to p r o d u c e b e n e fits to th e p u b lic , s u c h as g r e a te r c o n v e n ie n c e , in c re a s e d c o m p e titio n , o r g a in s in e ffic ie n c y , th a t o u tw e ig h a n y p o s s ib le a d v e rs e e ffe c ts . In o th e r w o rd s , u n d e r th e la w , a s w e ll a s u n d e r th e B o a r d ’s R e g u la tio n Y , a n a p p lic a tio n m a y n o t b e a p p r o v e d u n le s s it is in th e p u b lic in te re s t. T h e m a jo rity h a s p r e s e n te d n o e v id e n c e to s h o w th a t th e s e c o v e n a n ts a re in th e p u b lic in te re s t. O n th e c o n tr a r y , e v e n th e title a c c o r d e d to th e a g r e e m e n ts , “ c o v e n a n t n o t to c o m p e te ” , m a k e s it u n m is ta k e a b ly c le a r th a t th e ir p r im a r y p u r p o s e is to r e s tr ic t th e d e v e lo p m e n t o f c o m p e titio n a n d to p r o te c t th e m a r k e t p o s itio n th a t A p p lic a n t is a c q u irin g . W h ile th e s e c o v e n a n ts m a y b e w id e ly LAW DEPARTMENT 369 a c c e p te d in th e b u s in e s s c o m m u n ity , a n d e v e n s a n c tio n e d b y s o m e c o u r ts , s u c h a g r e e m e n ts a re r a re ly , if e v e r , s c r u tin iz e d p rio r to th e tim e o f b e c o m in g e ffe c tiv e b y a n a g e n c y su c h a s th e B o a rd th a t h a s as o n e o f its r e s p o n s ib ilitie s th e p r o m o tio n o f c o m p e titio n in a re a s c lo s e ly re la te d to b a n k in g . G iv e n th is p la in ly s ta te d s ta tu to ry re s p o n s ib ility , w e c a n n o t c o n d o n e , n o r p e rc e iv e h o w th e p u b lic in te re s t is s e rv e d b y , a p p r o v in g a g r e e m e n ts w h ic h b y th e ir v e ry n a tu re re ta rd th e d e v e lo p m e n t o f c o m p e titio n b y re s tr ic tin g e n tr y in to a b u s in e s s b y in d iv id u a ls w h o s h o u ld b e fre e to c o m p e te if th e y so d e s ire . U n d e r th e c irc u m s ta n c e s o f th is c a s e , w e c o n c lu d e th a t, u p o n w e ig h in g th e fa c to rs th e B o a rd is re q u ir e d to c o n s id e r u n d e r § 4 ( c )( 8 ) o f th e A c t, c o n s u m m a tio n o f th e A p p lic a n t’s p ro p o s a l as n o w c o n s titu te d w o u ld b e c o n tr a r y to th e p u b lic in te r e s t. F o r th e s e re a s o n s , w e w o u ld d e n y th e a p p li c a tio n . P A T A G O N IA C O R P O R A T IO N T U C S O N , A R IZ O N A O rder A p p r o v in g A c q u is i t i o n C o r p o r a t io n of th e B o a rd h a s c o n s id e r e d all c o m m e n ts r e c e iv e d in th e lig h t o f th e p u b lic in te re s t f a c to rs s e t fo rth in § 4 ( c )( 8 ) o f th e A c t (1 2 U . S . C . 1 8 4 3 (c )(8 )). O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n is a p p ro v e d fo r th e r e a s o n s se t fo rth in th e B o a r d ’s S ta te m e n t, w h ic h w ill b e r e le a s e d a t a la te r d a te . T h is d e te r m in a tio n is s u b je c t to th e c o n d itio n s se t fo rth in § 2 2 5 .4 (c ) o f R e g u la tio n Y a n d to th e B o a r d ’s a u th o r ity to r e q u ire s u c h m o d ific a tio n o r te r m in a tio n o f th e a c tiv itie s o f th e h o ld in g c o m p a n y o r a n y o f its s u b s id ia r ie s as th e B o a rd fin d s n e c e s s a ry to a s s u re c o m p lia n c e w ith th e p ro v is io n s a n d p u rp o s e s o f th e A c t a n d th e B o a r d ’s r e g u la tio n s a n d o rd e rs is s u e d th e r e u n d e r , o r to p r e v e n t e v a s io n th e re o f. B y o rd e r o f th e B o a rd o f G o v e r n o r s , e ffe c tiv e M a rc h 3 0 , 1 9 7 3 . Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, and Brimmer. Absent and not voting: Chairman Burns and Governors Sheehan, and Bucher. [s e a l] (S ig n e d ) T y n a n S m i t h , S e c r e t a r y o f th e B o a r d . C r e d it e l P a ta g o n ia C o r p o r a tio n , T u c s o n , A r iz o n a , a b a n k h o ld in g c o m p a n y w ith in th e m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t, h a s a p p lie d fo r th e B o a r d ’s a p p r o v a l, u n d e r § 4 ( c )( 8 ) o f th e A c t a n d § 2 2 5 .4 (b ) ( 2 ) o f th e B o a r d ’s R e g u la tio n Y , to a c q u ire th r o u g h its s u b s id ia r y , M o d e l F in a n c e C o m p a n y , a ll o f th e v o tin g s h a r e s o f C re d ite l C o r p o r a tio n o f N e b r a s k a N o . 1, O m a h a ; C re d ite l C o r p o r a tio n o f N e b r a s k a N o . 2 , O m a h a ; a n d C r e d ite l C o r p o r a tio n o f N e b r a s k a N o . 4 , C o lu m b u s ; all lo c a te d in th e S ta te o f N e b ra s k a a n d e a c h o f w h ic h is a w h o lly o w n e d s u b s id ia ry o f C re d ite l C o r p o r a tio n , O m a h a , N e b ra s k a . C re d ite l C o r p o ra tio n th ro u g h th e s e s u b s id ia r ie s e n g a g e s in th e a c tiv itie s o f m a k in g , a c q u ir in g , o r s e rv ic in g lo a n s o r o th e r e x te n s io n s o f c r e d it fo r p e r s o n a l, f a m ily , o r h o u s e h o ld p u rp o s e s , a n d a c ts a s in s u ra n c e a g e n t o r b r o k e r in s e llin g c r e d it life , a c c id e n t a n d h e a lth in s u r a n c e , a n d p ro p e rty d a m a g e in s u ra n c e f o r c o l la te ra l s u p p o rtin g lo a n s to b o r r o w e r s fro m th e s e fin a n c e s u b s id ia rie s . S u c h a c tiv itie s h a v e b e e n d e te r m in e d b y th e B o a rd to b e c lo s e ly r e la te d to Statem ent P a ta g o n ia C o r p o r a tio n , T u c s o n , A r iz o n a , a b a n k h o ld in g c o m p a n y w ith in th e m e a n in g o f th e B a n k H o ld in g C o m p a n y A c t, h a s a p p lie d f o r th e B o a r d ’s a p p r o v a l, u n d e r § 4 ( c ) ( 8 ) o f th e A c t a n d § 2 2 5 .4 (b ) ( 2 ) o f th e B o a r d ’s R e g u la tio n Y , to a c q u ire th r o u g h its s u b s id ia r y , M o d e l F in a n c e C o m p a n y , all o f th e v o tin g s h a re s o f C re d ite l C o r p o r a tio n o f N e b r a s k a N o . 1, O m a h a ; C re d ite l C o r p o r a tio n o f N e b r a s k a N o . 2 , O m a h a ; a n d C r e d ite l C o r p o r a tio n o f N e b r a s k a N o . 4 , C o lu m b u s ; all lo c a te d in th e S ta te o f N e b r a s k a a n d e a c h o f w h ic h is a w h o lly - o w n e d s u b s id ia r y o f C re d ite l C o r p o r a tio n , O m a h a , N e b ra s k a . C re d ite l C o r p o r a tio n , th ro u g h th e s e s u b s id ia r ie s , e n g a g e s in th e a c tiv itie s o f m a k in g , a c q u ir in g , o r s e r v ic in g lo a n s o r o th e r e x te n s io n s o f c r e d it fo r p e r s o n a l, fa m ily , o r h o u s e h o ld p u r p o s e s , a n d a c ts a s in s u r a n c e a g e n t o r b ro k e r in s e llin g c r e d it life , a c c id e n t a n d h e a lth in s u r a n c e , a n d p r o p e r ty d a m a g e in s u r a n c e f o r c o lla te r a l s u p p o r tin g lo a n s to b o rr o w e rs fro m th e s e fin a n c e s u b s id ia r ie s . S u c h a c tiv itie s h a v e b e e n d e te rm in e d b y th e B o a r d to b e c lo s e ly re la te d to th e b u s in e s s o f b a n k in g (1 2 C F R 2 2 5 .4 ( a ) ( 1 ) , (3 ) a n d ( 9 )(ii)( a )). N o tic e o f th e a p p lic a tio n , a ffo rd in g o p p o r tu n ity fo r in te re s te d p e rs o n s to s u b m it c o m m e n ts a n d th e b u s in e s s o f b a n k in g (1 2 C F R 2 2 5 .4 ( a ) ( 1 ) , (3 ) a n d ( 9 )(ii) (a )) . N o tic e o f th e a p p lic a tio n , a ffo rd in g o p p o r tu n ity fo r in te re s te d p e r s o n s to s u b m it c o m m e n ts a n d v ie w s o n th e p u b lic in te re s t f a c to r s , h a s b e e n d u ly p u b lis h e d (3 8 F e d e ra l R e g is te r 1 9 6 4 ). T h e tim e v ie w s o n th e p u b lic in te r e s t f a c to r s , h a s b e e n d u ly p u b lis h e d (3 8 F e d e ra l R e g is te r 1 9 6 4 ). T h e tim e fo r filin g c o m m e n ts a n d v ie w s h a s e x p ir e d , a n d fo r filin g c o m m e n ts a n d v ie w s h a s e x p ir e d , a n d 370 th e B o a rd h a s c o n s id e r e d all c o m m e n ts re c e iv e d in th e lig h t o f th e p u b lic in te re s t fa c to r s s e t fo rth in § 4 (c )(8 ) o f th e A c t (1 2 U .S .C . 1 8 4 3 (c )(8 )). A p p lic a n t’s b a n k in g s u b s id ia r y , G r e a t W e s te rn B a n k a n d T r u s t C o m p a n y , is th e fo u rth la rg e s t b a n k in g o r g a n iz a tio n in A riz o n a . Its d e p o s its o f $ 1 7 7 m illio n r e p re s e n t 3 .9 p e r c e n t o f to ta l d e p o s its in th e S t a t e . 1 G r e a t W e s te rn m a k e s c o n s u m e r in s ta llm e n t lo a n s th ro u g h its h e a d q u a r te r s office in P h o e n ix a n d in b r a n c h o ffice s th r o u g h o u t A riz o n a . M o d e l F in a n c e C o m p a n y , P a t a g o n i a ’s c o n s u m e r fin a n c e h o ld in g c o m p a n y , h a s o ffice s o p e r a tin g in A riz o n a , N e v a d a , N e w M e x ic o , a n d C o lo ra d o . C re d ite l C o r p o r a tio n , o p e r a tin g th ro u g h its th re e s u b s id ia r ie s , C re d ite l C o r p o r a tio n o f N e b ra s k a N o s . 1, 2 a n d 4 , is a sm a ll c o n s u m e r fin a n c e c o m p a n y w ith in s ta llm e n t re c e iv a b le s o f $ 3 .3 m il l io n .2 It h a s th re e o ffic e s, tw o in O m a h a a n d o n e in C o lu m b u s , a b o u t 8 0 m ile s w e s t o f O m a h a . C re d ite l m a k e s s m a ll c o n s u m e r lo a n s a n d se lls c r e d it in s u r a n c e in c o n n e c tio n w ith its le n d in g a c tiv itie s . T h e lo c a l m a r k e ts fo r c o n s u m e r lo a n s in w h ic h C re d ite l c o m p e te s in c lu d e a n u m b e r o f offices o f th e la rg e s t fin a n c e c o m p a n ie s in th e c o u n try . C o n s u m m a tio n o f th e p r o p o s a l w o u ld e lim in a te n o e x is tin g c o m p e titio n b e tw e e n a n y o f A p p li c a n t ’s e x is tin g s u b s id ia r ie s a n d C r e d ite l, n o r , in v ie w o f th e d is ta n c e s in v o lv e d , is it lik e ly th a t a n y su c h c o m p e titio n w o u ld d e v e lo p in th e a b s e n c e o f th e p r o p o s a l. T h e re is n o e v id e n c e in th e re c o rd in d ic a tin g th a t c o n s u m m a tio n o f th e p o rp o s e d tr a n s a c tio n w o u ld re s u lt in a n y u n d u e c o n c e n tra tio n o f r e s o u r c e s , u n f a ir c o m p e titio n , c o n flicts o f in te r e s ts , u n s o u n d b a n k in g p r a c tic e s , o r o th e r a d v e rs e e ffe c ts o n th e p u b lic in te re s t. It is a n tic ip a te d th a t C re d ite l C o r p o r a tio n ’s a ffilia tio n w ith A p p lic a n t w ill g iv e C r e d ite l C o r p o ra tio n a c c e s s to th e g re a te r r e s o u r c e s o f A p p li c a n t, a n d e n a b le it to c o m p e te m o re e ffe c tiv e ly w ith o th e r c o n s u m e r fin a n c e c o m p a n ie s in th e a re a in w h ic h it o p e ra te s . O n b a la n c e , th e B o a rd c o n c lu d e s th a t th e p u b lic b e n e fits fa c to rs th e B o a rd is re q u ire d to c o n s id e r u n d e r § 4 ( c )( 8 ) o u tw e ig h a n y p o s s ib le a d v e rs e e ffe c ts th a t m ig h t r e s u lt fro m th e p ro p o s e d a c q u is itio n . In its c o n s id e ra tio n o f th is m a tte r , th e B o a rd h a s ta k e n in to a c c o u n t A p p lic a n t’s c o m m itm e n t n o t to e n fo rc e o r re ly u p o n a c o v e n a n t n o t to c o m p e te o b ta in e d fro m C r e d it e l ’s m a jo rity s to c k h o ld e r in c o n n e c tio n w ith th is tr a n s a c tio n . 1All banking data are as of June 30, 1972. 2All nonbanking data are as of September 30, 1972. FEDERAL RESERVE BULLETIN □ MAY 1973 B a s e d u p o n th e f o r e g o in g a n d o th e r c o n s i d e r a tio n s re fle c te d in th e r e c o r d , th e B o a rd h a s d e te r m in e d th a t th e b a la n c e o f th e p u b lic in te re s t fa c to rs th e B o a rd is re q u ir e d to c o n s id e r u n d e r § 4 ( c )( 8 ) is f a v o ra b le . A c c o r d in g ly , th e a p p lic a tio n is h e r e b y a p p r o v e d . T h is d e te r m in a tio n is s u b je c t to th e c o n d itio n s se t fo rth in § 2 2 5 .4 ( c ) o f R e g u la tio n Y a n d to th e B o a r d ’s a u th o r ity to r e q u ire s u c h m o d ific a tio n o r te r m in a tio n o f th e a c tiv itie s o f a h o ld in g c o m p a n y o r a n y o f its s u b s id ia rie s a s th e B o a rd fin d s n e c e s s a ry to a s s u re c o m p lia n c e w ith th e p r o v is io n s a n d p u rp o s e s o f th e A c t a n d th e B o a r d ’s r e g u la tio n s a n d o r d e rs is s u e d t h e r e u n d e r , o r to p r e v e n t e v a s io n th e re o f. C o n c u r r in g S t a t e m e n t of G overnor D aane I c o n c u r in th e B o a r d ’s a p p ro v a l o f th is a p p li c a t i o n .1 H o w e v e r , I w is h to e x p r e s s m y v ie w s o n th e B o a r d ’s s ta te m e n t th a t it h a s ta k e n in to a c c o u n t A p p lic a n t’s c o m m itm e n t to d ro p th e c o v e n a n t n o t to c o m p e te w h ic h h a d b e e n e n te re d in to w ith C r e d it e l ’s p rin c ip a l s h a r e h o ld e r . T h e “ ta k e n in to a c c o u n t ” p h r a s e o lo g y s im p ly m e a n s th a t th e o th e r B o a rd m e m b e r s ’ a p p ro v a l in fa c t is c o n tin g e n t o n A p p lic a n t’s d r o p p in g s a id c o v e n a n t. S u c h c o v e n a n ts h a v e a lo n g h is to ry o f u se in c o n n e c tio n w ith th e sa le o f b a s ic a lly o w n e ro p e r a te d b u s in e s s e s , a n d th e ir v a lid ity h a s b e e n s u s ta in e d b y th e c o u r ts so lo n g a s th e y a re r e a s o n a b le in s c o p e , d u r a tio n , a n d g e o g r a p h ic a r e a . S u c h c o v e n a n ts p e rfo rm a u s e fu l e c o n o m ic f u n c tio n b y re n d e rin g th e g o o d w ill o f a b u s in e s s s a le a b le . T h e y a s s u re to th e b u y e r th e v a lu e o f w h a t h e h a s b o u g h t. In m y ju d g m e n t, th e c o v e n a n t n o t to c o m p e te in th is in s ta n c e m e e ts th e te s ts o f b e in g r e a s o n a b le in s c o p e , d u r a tio n , a n d g e o g ra p h ic a re a . T h e c o n s u m e r fin a n c e in d u s try is c h a r a c te riz e d b y lo w b a rrie r s to e n try a n d th e c o v e n a n t a p p e a rs r e a s o n a b ly n e c e s s a ry to a s s u re A p p lic a n t o f th e v a lu e o f h is p u r c h a s e . F u r th e r , in th is c a s e , p a y m e n t fo r th e c o v e n a n t d o e s n o t a p p e a r to b e a d e v ic e to a v o id a n y B o a rd p o lic y , s u c h as th a t r e q u ir in g an e q u a l o ffe r to a ll s h a r e h o ld e r s . U n d e r th e s e c ir c u m s ta n c e s , it is m y b e lie f th a t th e B o a rd s h o u ld n o t h a v e ta k e n th e c o v e n a n t, o r th e A p p lic a n t’s e x p r e s s e d w illin g n e s s to d ro p it in o rd e r to o b ta in a p p r o v a l, in to a c c o u n t, in th e s e n s e o f a c o n d itio n o f a p p r o v a l, in a c tin g o n th e a p p lic a tio n . G overnor Sheehan, who was absent and not voting on this action, wishes to express his agreement with this concurring position. LAW DEPARTMENT BOARD REVIEW UNDER THE GRANDFATHER PROVISO IN SECTION 4(a)(2) OF THE BANK HOLDING COMPANY ACT W H IT N E Y H O L D IN G C O R P O R A T I O N , N E W O R L E A N S , L O U IS IA N A “ G r a n d f a t h e r ” P r i v il e g e s U n d e r B a n k H o l d in g C o m p a n y A c t S e c tio n 4 o f th e B a n k H o ld in g C o m p a n y A c t (1 2 U .S .C . 1 8 4 3 ) p r o v id e s c e r ta in p r iv ile g e s ( “ g r a n d f a t h e r ” p r iv ile g e s ) w ith r e s p e c t to n o n b a n k in g a c tiv itie s o f a c o m p a n y th a t, b y v irtu e o f th e 1 9 7 0 A m e n d m e n ts to th e B a n k H o ld in g C o m p a n y A c t, b e c a m e s u b je c t to th e B a n k H o ld in g C o m p a n y A c t. P u r s u a n t to § 4 ( a )( 2 ) o f th e A c t, a “ c o m p a n y c o v e re d in 1 9 7 0 ” m a y c o n tin u e to e n g a g e , e ith e r d ire c tly o r th r o u g h a s u b s id ia r y , in n o n -b a n k in g a c tiv itie s th a t s u c h a c o m p a n y w a s la w fu lly e n g a g e d in o n J u n e 3 0 , 1968 (o r o n a d a te s u b s e q u e n t to J u n e 3 0 , 1 9 6 8 , in th e c a s e o f a c tiv itie s c a r r ie d o n as a re s u lt o f th e a c q u is itio n b y su c h c o m p a n y o r s u b s id ia r y , p u rs u a n t to a b in d in g w ritte n c o n tr a c t e n te r e d in to o n o r b e f o re J u n e 3 0 , 1 9 6 8 , o f a n o th e r c o m p a n y e n g a g e d in su c h a c tiv itie s a t th e tim e o f th e a c q u is itio n ) , a n d h a s b e e n c o n tin u o u s ly e n g a g e d in s in c e J u n e 3 0 , 1968 (o r s u c h s u b s e q u e n t d a te ). S e c tio n 4 ( a )( 2 ) o f th e A c t p r o v id e s , i n t e r a l i a , th a t th e B o a rd o f G o v e rn o rs o f th e F e d e ra l R e s e rv e S y s te m m a y te rm in a te s u c h g r a n d fa th e r p riv ile g e s if, h a v in g d u e re g a rd to th e p u r p o s e s o f th e A c t, th e B o a rd d e te rm in e s th a t su c h a c tio n is n e c e s s a ry to p re v e n t u n d u e c o n c e n tr a tio n o f r e s o u r c e s , d e c re a s e d o r u n f a ir c o m p e titio n , c o n flic ts o f in te re s t, o r u n s o u n d b a n k in g p ra c tic e s . W ith r e s p e c t to a c o m p a n y th a t c o n tr o ls a b a n k w ith a s s e ts in e x c e s s o f $ 6 0 m illio n o n o r a f te r D e c e m b e r 3 1 , 1 9 7 0 , th e B o a rd is re q u ir e d to m a k e su c h a d e te r m in a tio n w ith in a tw o y e a r p e rio d . N o tic e o f th e B o a r d ’s p ro p o s e d r e v ie w o f th e g r a n d fa th e r p r iv ile g e s o f th e W h itn e y H o ld in g C o r p o r a tio n , N e w O r le a n s , L o u is ia n a , a n d a n o p p o r tu n ity fo r in te re s te d p e r s o n s to s u b m it c o m m e n ts a n d v ie w s o r re q u e s t a h e a r in g , h a s b e e n g iv e n (3 7 F .R . 2 2 4 1 4 ). T h e tim e fo r filin g c o m m e n ts , v ie w s , a n d r e q u e s ts h a s e x p ir e d , a n d all th o s e re c e iv e d h a v e b e e n c o n s id e re d b y th e B o a rd in lig h t o f th e f a c to rs s e t fo r th in § 4 ( a )( 2 ) o f th e A c t. O n th e e v id e n c e b e fo re it, th e B o a rd m a k e s th e fo llo w in g fin d in g s . W h itn e y H o ld in g C o rp o ra tio n ( “ R e g is tr a n t” ), N e w O r le a n s , L o u is ia n a , b e c a m e a b a n k h o ld in g c o m p a n y o n D e c e m b e r 3 1 , 1 9 7 0 , as a re s u lt o f th e 197 0 A m e n d m e n ts to th e A c t, 371 b y v irtu e o f R e g is tr a n t ’s o w n e r s h ip o f 100 p e r c e n t o f th e v o tin g s h a re s (le s s d i r e c to r s ’ q u a lif y in g s h a re s ) o f W h itn e y N a tio n a l B a n k o f N e w O r e la n s ( “ B a n k ” ), N e w O r le a n s , L o u is ia n a ( a s s e ts o f a p p r o x im a te ly $ 7 3 6 m illio n , a s o f D e c e m b e r 3 1 , 1 9 7 0 ). B a n k , c o n tr o l o f w h ic h w a s a c q u ir e d b y R e g is tr a n t in M a y , 1 9 6 2 , h a d to ta l d e p o s its o f a p p r o x im a te ly $ 7 0 8 m illio n as o f J u n e 3 0 , 1 9 7 2 , r e p r e s e n tin g a little le s s th a n 3 0 p e r c e n t o f th e a g g r e g a te d e p o s its in c o m m e rc ia l b a n k s lo c a te d in O r le a n s P a ris h , a n d is th e la rg e s t o f n in e b a n k s lo c a te d in th e O rle a n s P a r is h a re a . B a n k ’s m a n a g e m e n t, fin a n c ia l c o n d itio n a n d p r o s p e c ts a re re g a rd e d as s a tis f a c to r y , a n d th e B o a rd h a s f o u n d n o e v id e n c e o f u n s o u n d b a n k in g p ra c tic e s . It a p p e a rs th a t R e g is tr a n t d o e s n o t e n g a g e d i re c tly in a n y b u s in e s s a c tiv ity o th e r th a n h o ld in g s to c k o f , o r p r o v id in g s e rv ic e s to its s u b s id ia rie s . R e g is tr a n t h a s f o u r n o n b a n k in g s u b s id ia r ie s , n a m e ly , B e r w ic k L a n d C o m p a n y , In c . ( “ B e r w i c k ” ), C o m m o n S tr e e t C o r p o r a tio n ( “ C o m m o n S t r e e t ” ), G r a v ie r S tre e t C o r p o r a tio n ( “ G r a v i e r ” ), a n d L o u is ia n a M a in te n a n c e , In c . ( “ M a i n te n a n c e ” ), a ll o f N e w O r le a n s , L o u is ia n a . B e rw ic k o w n s a p p r o x im a te ly 2 9 0 0 a c re s o f la n d , s o m e o f w h ic h is le a s e d to f a rm e rs fo r r a is in g s u g a r c a n e . T h e la n d w a s o rig in a lly a c q u ir e d , o n A u g u s t 15, 1 9 2 8 , th r o u g h d e b ts p r e v io u s ly c o n tr a c te d b y W h itn e y T r u s t & S a v in g s B a n k a n d w a s a s s u m e d b y B a n k o n A p ril 2 6 , 1 9 3 3 , w h e n W h it n e y T r u s t & S a v in g s B a n k w a s m e rg e d in to B a n k . T h e la n d w a s s h ifte d fro m B a n k to B e rw ic k o n M a rc h 6 , 1 9 7 0 . I n a s m u c h as B e r w ic k d id n o t e n g a g e in th is a c tiv ity o n J u n e 3 0 , 1 9 6 8 , a n d th e h o ld in g c o m p a n y d id n o t e n g a g e in th is a c tiv ity o th e r th a n th ro u g h B a n k , th e B o a rd c o n c lu d e s th a t n o g r a n d fa th e r b e n e fits a c c ru e to R e g is tr a n t w ith re g a rd to B e rw ic k a c tiv itie s . A n a c tiv ity e n g a g e d in d ir e c tly b y a b a n k is r e g a rd e d b y th e B o a rd as n o t b e in g a n a c tiv ity w ith in th e m e a n in g a n d in te n t o f th e g r a n d fa th e r p ro v is o in § 4 (a )(2 ) o f th e A c t. C o m m o n S tre e t a n d G r a v ie r a re in a c tiv e c o r p o ra tio n s a n d h a v e n o a c tiv itie s e n title d to g r a n d f a th e r p r iv ile g e s . M a in te n a n c e , w h ic h p ro v id e s b u ild in g m a in te n a n c e s e rv ic e s to B a n k o n a c o s t b a s is , b e c a m e a s u b s id ia ry o f B a n k o n M a rc h 2 2 , 1 9 6 7 . U n d e r § 4 ( c ) ( 1 ) ( C ) ,1 th e a c tiv itie s o f M a in te n a n c e se e m ‘Section 4(c)(1)(C) of the Act enables a bank holding company to acquire (without the approval of the Board) “ (1) shares of any company engaged . . . solely in . . . (C) furnishing services to or performing services for such bank holding company or its banking subsidiaries. . . . ” FEDERAL RESERVE BULLETIN □ MAY 1973 372 to b e e x e m p t fro m th e g e n e ra l p ro h ib itio n o f § 4 a g a in s t n o n b a n k in g a c tiv itie s . O n th e b a s is o f th e f o re g o in g a n d th e fa c ts b e f o re th e B o a r d , it a p p e a rs th a t R e g is tra n t is n o t e n title d to g r a n d f a th e r b e n e fits w ith in th e m e a n in g o f th e p r o v is o o f § 4 ( a )( 2 ) o f th e A c t. B o a rd o f G o v e r n o r s , A p ril 2 7 , 1 9 7 3 . Voting for this action: Vice Chairman Robertson and Gov ernors Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Mitchell. (S ig n e d ) C h e s t e r B . F e l d b e r g , [s e a l] A s s is ta n t S e c r e ta r y o f th e B o a r d . O R D E R S N O T P R I N T E D IN T H I S I S S U E D u rin g A p ril 1 9 7 3 , th e B o a rd o f G o v e rn o rs a p p ro v e d th e a p p lic a tio n s lis te d b e lo w . T h e o r d e rs h a v e b e e n p u b lis h e d in th e F e d e ra l R e g is te r , a n d c o p ie s o f th e o rd e rs a re a v a ila b le u p o n r e q u e s t to P u b lic a tio n s S e r v ic e s , D iv is io n o f A d m in is tra tiv e S e rv ic e s , B o a rd o f G o v e rn o rs o f th e F e d e r a l R e s e rv e S y s te m , W a s h in g to n , D .C . 2 0 5 5 1 . ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY A p p lic a n t B a n k (s) D e a rb o rn F in a n c ia l C o r p o r a tio n , U p p e r A v e n u e N a tio n a l B a n k o f C h ic a g o , I llin o is C h ic a g o , C h ic a g o , Illin o is T h e F a rm e rs & M e r c h a n ts I n s u ra n c e T h e F a r m e rs a n d M e rc h a n ts S ta te B a n k , C o lb y , K a n s a s A g e n c y , I n c ., C o lb y , K a n s a s F irs t N a tio n a l B a n k o f H o lly w o o d , F lo rid a B a n k s h a r e s , I n c ., H o lly w o o d , F lo rid a H o lly w o o d , F lo r id a F irs t N a tio n a l B a n k o f H a lla n d a le , H a lla n d a le , F lo rid a S e c o n d N a tio n a l B a n k o f W e s t H o lly w o o d , H o lly w o o d , F lo rid a G e n e s e e M e r c h a n ts B a n k & T ru s t U n ite d M ic h ig a n C o r p o r a tio n , C o ., F lin t, M ic h ig a n F lin t, M ic h ig a n B o a r d a c tio n F ederal (e ffe c tiv e R e g is te r d a te ) c ita tio n 4 / 2 0 /7 3 38 F .R . 1 0 6 7 5 4 /3 0 /7 3 3 8 F .R . 9 1 2 2 4 /1 0 /7 3 38 F .R . 1 0 6 7 8 4 / 3 0 /7 3 4 / 3 /7 3 4 /2 0 /7 3 4 / 6 /7 3 38 F .R . 9 2 6 8 4 /1 2 /7 3 ORD ERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK A p p lic a n t A la b a m a B a n c o r p o r a tio n , B ir m in g h a m , A la b a m a B a n c O h io C o r p o r a tio n , C o lu m b u s , O h io B a rn e tt B a n k s o f F lo r id a , I n c ., J a c k s o n v ille , F lo r id a C e n tra l B a n c s h a re s o f th e S o u th , I n c ., B ir m in g h a m , A la b a m a C h a rte r N e w Y o rk C o r p o r a tio n , N e w Y o rk , N e w Y o rk F irs t A la b a m a B a n c s h a r e s , I n c ., B ir m in g h a m , A la b a m a B o a r d a c tio n F ederal (e ff e c tiv e R e g is te r d a te ) c ita tio n T h e C o m m e rc ia l N a tio n a l B a n k o f A n n is to n , A n n is to n , A la b a m a T h e P e o p le s N a tio n a l B a n k o f G re e n fie ld , G re e n fie ld , O h io F irs t S ta te B a n k o f L a k e la n d , L a k e la n d , F lo r id a 4 / 1 1 /7 3 3 8 F .R . 10 0 4 5 4 / 2 3 /7 3 38 F .R . 1 0 0 4 6 4 /2 3 /7 3 38 F .R . 9 6 8 3 T h e F irs t N a tio n a l B a n k o f A u b u r n , A u b u rn , A la b a m a 4 /1 9 /7 3 B a n k (s) T h e D e p o s it N a tio n a l B a n k o f M o b ile C o u n ty , P r ic h a r d , A la b a m a T h e B a n k o f L a k e P la c id , L a k e P la c id , N e w Y o rk F irs t N a tio n a l B a n k o f B a y M in e tte , B a y M in e tte , A la b a m a 4 / 1 0 /7 3 4 / 1 2 /7 3 4 /1 0 /7 3 4 / 2 3 /7 3 4 /1 9 /7 3 38 F .R . 10511 4 / 2 7 /7 3 38 F .R . 1 0 0 4 6 4 /2 3 /7 3 38 F .R . 1 0 6 7 6 4 /3 0 /7 3 LAW DEPARTMENT 373 O RD ERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK—C ont. A p p lic a n t B a n k (s) F irs t A m te n n C o r p o r a tio n , N a s h v ille , T e n n e s s e e F irs t N a tio n a l F in a n c ia l C o r p o r a tio n , K a la m a z o o , M ic h ig a n F irs t S e c u rity N a tio n a l C o r p o r a tio n , B e a u m o n t, T e x a s F irs t T e n n e s s e e N a tio n a l C o r p o r a tio n , M e m p h is , T e n n e s s e e F irs t U n ite d B a n c o r p o r a tio n , I n c ., F o r t W o r th , T e x a s G lo b e C o r p o r a tio n , S c o ts d a le , A r iz o n a T e n n e s s e e V a lle y B a n c o r p ., I n c ., N a s h v ille , T e n n e s s e e F a r m e r s -P e o p le s B a n k , M ila n , T e n n e s s e e C heboygan B ank, C h e b o y g a n , M ic h ig a n B a n k o f L a n c a s te r L a n c a s te r, T e x a s T h e F o u n ta in C ity B a n k , K n o x v ille , T e n n e s s e e C le b u rn e N a tio n a l B a n k , C le b u r n e , T e x a s U p p e r A v e n u e N a tio n a l B a n k o f C h ic a g o , C h ic a g o , I llin o is C itiz e n s B a n k , E liz a b e th to n , T e n n e s s e e T h e F irs t N a tio n a l B a n k o f G re e n e v ille , G r e e n e v ille , T e n n e s s e e In w o o d C o m m e r c e B a n k , N . A . , H o u s to n , T e x a s K in g w o o d C o m m e r c e B a n k , N . A . , H o u s to n , T e x a s V ir g in ia T ru s t C o m p a n y , R ic h m o n d , V irg in ia T e x a s C o m m e r c e B a n c s h a r e s , I n c ., H o u s to n , T e x a s V ir g in ia N a tio n a l B a n k s h a r e s , I n c ., N o r fo lk , V irg in ia B o a r d a c tio n F ederal ( e ff e c tiv e R e g is te r d a te ) c ita tio n 4 / 2 6 /7 3 4 / 1 0 /7 3 4 / 2 6 /7 3 4 / 3 0 /7 3 4 /3 0 /7 3 4 / 2 0 /7 3 4 / 2 6 /7 3 4 / 2 6 /7 3 4 / 1 2 /7 3 38 F .R . 1 1 1 3 4 5 /4 /7 3 38 F .R . 1 0 0 4 7 4 / 2 3 /7 3 38 F .R . 1 1 1 3 5 5 /4 /7 3 3 8 F .R . 1 2 1 6 9 5 /9 /7 3 38 F .R . 1 2 1 6 8 5 /9 /7 3 3 8 F .R . 1 0 6 7 8 4 /3 0 /7 3 38 F .R . 1 1 1 3 7 5 /4 /7 3 38 F .R . 1 1 1 3 8 5 /4 /7 3 38 F .R . 1 1 0 1 2 5 /3 /7 3 38 F .R . 9 6 8 6 4 /1 9 /7 3 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES A p p lic a n t D o m in io n B a n k s h a re s C o r p o r a tio n , R o a n o k e , V irg in ia T h e F a rm e rs & M e r c h a n ts In s u ra n c e A g e n c y , I n c ., C o lb y , K a n s a s F id e lity C o rp o ra tio n o f P e n n s y l v a n ia , R o s e m o n t, P e n n s y lv a n ia F id e lity U n io n B a n c o r p o r a tio n , N e w a rk , N e w J e r s e y F irs t J e r s e y N a tio n a l C o r p o r a tio n , J e rs e y C ity , N e w J e rs e y F irs t N a tio n a l H o ld in g C o r p ., A tla n ta , G e o rg ia F irs t S e c u rity N a tio n a l C o r p o r a tio n , B e a u m o n t, T e x a s T h ird N a tio n a l C o r p o r a tio n , N a s h v ille , T e n n e s s e e V irg in ia N a tio n a l B a n k s h a r e s , I n c ., N o r f o lk , V irg in ia B a n k (s) T h e F itto n C o m p a n y , A le x a n d r ia , V ir g in ia T h e F a rm e r s a n d M e r c h a n ts S ta te B a n k , C o lb y , K a n s a s C o m m e r c ia l C a p ita l C o r p o r a tio n , N e w Y o rk , N e w Y o rk S u b u r b a n F in a n c e C o m p a n y o f N e w a r k , N e w a rk , N e w J e rs e y A tla n tic C ity L o a n C o m p a n y , A tla n tic C ity , N e w J e r s e y F a irla n e F in a n c e C o ., E a s le y , N o rth C a ro lin a F irs t S e c u rity F in a n c ia l S y s te m s , H o u s to n , T e x a s M o b ile h o m e G u a r a n ty C o r p o r a tio n , M ia m i, F lo r id a A tla n tic D is c o u n t C o r p ., E liz a b e th C ity , N o rth C a r o lin a B o a r d a c tio n F ederal (e ffe c tiv e R e g is te r d a te ) c ita tio n 4 /2 3 /7 3 3 8 F .R . 1 0 6 7 5 4 /3 0 /7 3 38 F .R . 9 1 2 2 4 / 1 0 /7 3 38 F .R . 9 6 8 4 4 / 1 9 /7 3 38 F .R . 1 2 1 6 6 5 /9 /7 3 4 / 3 /7 3 4 /1 2 /7 3 4 /3 0 /7 3 4 / 3 0 /7 3 4 / 1 2 /7 3 38 F .R . 1 2 1 6 8 5 /9 /7 3 38 F .R . 1 2 1 6 7 5 /9 /7 3 3 8 F .R . 9 6 8 5 4 /1 3 /7 3 38 F .R . 4 /3 0 /7 3 4 /1 9 /7 3 38 F .R . 1 2 1 6 9 5 /9 /7 3 4 / 3 0 /7 3 9686 FEDERAL RESERVE BULLETIN □ MAY 1973 374 ORDER UNDER BANK MERGER ACT APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE A SSETS A p p lic a n t C h e b o y g a n S ta te B a n k , C h e b o y g a n , M ic h ig a n B a n k (s) C heboygan B ank, C h e b o y g a n , M ic h ig a n B o a r d a c tio n F ederal (e ffe c tiv e R e g is te r d a te ) c ita tio n 4 / 1 0 /7 3 38 F .R . 1 0 0 4 7 4 / 2 3 /7 3 Announcements RESIGNATION OF MR. ROBERTSON AS VICE CHAIR MAN OF THE BOARD OF GOVERNORS DESIGNATION OF MR. MITCHELL AS VICE CHAIRMAN OF THE BOARD G o v e rn o r J a m e s L o u is R o b e r ts o n , V ic e C h a irm a n o f th e B o a rd o f G o v e rn o rs o f th e F e d e ra l R e s e rv e S y s te m , r e s ig n e d a t th e e n d o f A p ril. M r. R o b e r ts o n ’s le tte r o f re s ig n a tio n a n d th e P r e s i d e n t ’s le tte r o f a c c e p ta n c e f o llo w : P r e s id e n t N ix o n o n M a y 17, 1 9 7 3 , d e s ig n a te d M r. G e o r g e W . M itc h e ll as V ic e C h a irm a n o f th e B o a rd o f G o v e rn o rs to s e rv e fo r a te rm o f 4 y e a rs fro m M a y 1, 1 9 7 3 , u n le s s a n d u n til h is s e rv ic e s as a M e m b e r o f th e B o a rd sh a ll h a v e s o o n e r M a rc h 2 9 , 1973 te r m in a te d . M r. M itc h e ll, first a p p o in te d to th e B o a rd in 1 9 6 1 , w a s a p p o in te d to a fu ll 1 4 -y e a r te rm in 1962. D e a r M r. P re s id e n t: I h e re b y te n d e r m y r e s ig n a tio n as a m e m b e r o f th e B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m , e ffe c tiv e as o f th e c lo s e o f b u s i n e s s A p ril 3 0 , 1 9 7 3 , o r a n y e a r lie r d a te th a t m ig h t b e tte r su it y o u r c o n v e n ie n c e . N e e d le s s to s a y , I d e e p ly a p p re c ia te th e o p p o rtu n ity a n d p r iv ile g e o f s e r v in g th e p u b lic d u r in g so m a n y d if fe re n t A d m in is tr a tio n s — n e a rly f o rty -s ix y e a rs in th e F e d e ra l p u b lic s e r v ic e , o v e r tw e n ty -o n e y e a rs as a m e m b e r o f th e B o a rd o f G o v e r n o r s , a n d a th ird o f th a t p e rio d as its V ic e C h a ir m a n . S in c e r e ly , J. L . R o b e rts o n T H E W H IT E H O U S E A p ril 2 5 , 1973 D e a r M r. R o b e r ts o n : It is w ith s p e c ia l a p p re c ia tio n f o r y o u r m a n y c o n tr ib u tio n s to th e e c o n o m ic w e ll- b e in g o f o u r c o u n tr y th a t I a c c e p t y o u r r e s ig n a tio n as a M e m b e r a n d V ic e C h a irm a n o f th e B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m , as y o u h a v e r e q u e s te d , e ffe c tiv e A p ril 3 0 , 1 9 7 3 . F o r m o re th a n tw o d e c a d e s , y o u r f o r e s ig h t, in te g r ity , a n d b a n k in g e x p e r tis e h a v e s ig n ifi c a n tly h e lp e d m a in ta in a n d s tre n g th e n th is c o u n tr y ’s b a n k in g s y s te m , a s y s te m w h ic h h a s f u r n is h e d th e c a p ita l fo r u n p a r a lle le d n a tio n a l g r o w th in th e p o s t-w a r y e a rs . F e w m e n in th e h is to ry o f th e “ F e d ” h a v e s e rv e d w ith s u c h d is tin c tio n a n d d e d ic a tio n , a n d o n b e h a lf o f all o u r fe llo w c itiz e n s , I w a n t y o u to k n o w o f m y la s tin g g r a titu d e a n d a d m ira tio n fo r y o u r s u p e rb w o rk . A s y o u p re p a re to le a v e g o v e r n m e n t s e rv ic e , I w e lc o m e th is o c c a s io n to e x te n d m y v e ry b e s t w is h e s to y o u a n d y o u r f a m ily fo r e v e r y h a p p i n e ss in th e y e a rs a h e a d . S in c e r e ly , R ic h a rd N ix o n CHANGES IN BOARD STAFF T h e B o a rd o f G o v e r n o r s h a s a n n o u n c e d th e f o l lo w in g a p p o in tm e n ts : R o n a ld G . B u rk e , D ir e c to r o f th e D iv is io n o f P e r s o n n e l A d m in is tr a tio n , to su c c e e d J a m e s A . M c In to s h (se e a p p o in tm e n t o f R e s e r v e B a n k o ffice r b e lo w ) , as D ire c to r o f th e D iv is io n o f F e d e ra l R e s e r v e B a n k O p e r a tio n s , e ffe c tiv e at th e e n d o f M a y ; a n d C h e s te r B . F e ld b e rg as S e c r e ta r y o f th e B o a rd e f fe c tiv e J u ly 1, 1 9 7 3 , to s u c c e e d T y n a n S m ith , w h o is re tir in g . M r. F e ld b e r g , fo r m e r ly S e c re ta r y o f th e F e d e ra l R e s e r v e B a n k o f N e w Y o r k , h a s b e e n o n lo a n to th e B o a rd s in c e J a n u a ry a n d h a s s e rv e d as a n A s s is ta n t S e c re ta ry s in c e M a rc h . H e is a g r a d u a te o f U n io n C o lle g e , S c h e n e c ta d y , N e w Y o r k , a n d th e H a r v a r d L a w S c h o o l. T h e B o a rd h a s a ls o a n n o u n c e d th e re tire m e n t o f H o w a rd H . H a c k le y , e f fe c tiv e M a y 3 1 , 1 9 7 3 . APPOINTMENT OF RESERVE BANK OFFICER T h e B o a rd o f D ir e c to rs o f th e F e d e ra l R e s e rv e B a n k o f B o s to n h a s a p p o in te d J a m e s A . M c In to s h as F irs t V ic e P re s id e n t to s u c c e e d E a rle O . L a th a m , w h o w ill r e tire o n J u n e 15, 1973. BANK CREDIT ACTIONS T h e B o a rd o f G o v e r n o r s a n n o u n c e d o n M a y 16, 19 7 3 , a s e rie s o f a c tio n s d e s ig n e d to c u r b th e ra p id e x p a n s io n in b a n k c re d it a n d h e lp m o d e ra te in fla tio n a r y p r e s s u r e s , a n d a t th e sa m e tim e to a s s u re th e a v a ila b ility o f c re d it o n a r e a s o n a b le s c a le . T h e m e a s u re s w ill: 1. Im p o s e a n 8 p e r c e n t m a r g in a l r e s e rv e r e q u ir e m e n t (th e re g u la r 5 p e r c e n t p lu s a s u p p le m e n ta l 3 p e r c e n t) o n fu r th e r in c re a s e s in th e to ta l o f (a) o u ts ta n d in g c e rtific a te s o f d e p o s it o f $ 1 0 0 ,0 0 0 a n d o v e r is s u e d b y m e m b e r b a n k s , a n d o n (b ) o u ts ta n d in g f u n d s o b ta in e d b y a b a n k th r o u g h 375 FEDERAL RESERVE BULLETIN □ MAY 1973 376 is s u a n c e b y a n a ffilia te o f o b lig a tio n s s u b je c t to th e e x is tin g re s e rv e re q u ir e m e n t o n tim e d e p o s its . T h e 8 p e r c e n t m a r g in a l r e s e rv e w o u ld n o t a p p ly to b a n k s w h o s e o b lig a tio n s o f th e s e ty p e s a g g r e g a te le s s th a n $ 1 0 m illio n . 2. R e d u c e fr o m 2 0 p e r c e n t to 8 p e r c e n t th e re s e r v e r e q u ir e m e n t o n c e r ta in fo r e ig n b o rr o w in g s o f U .S . b a n k s , p r im a r ily E u r o - d o lla r s , th u s a f fo rd in g r o u g h ly p a ra lle l tre a tm e n t a t p r e s e n t w ith th e m a rg in a l r e s e r v e r e q u ir e m e n t o n l a r g e - d e n o m in a tio n c e rtific a te s o f d e p o s it a n d b a n k - re la te d c o m m e rc ia l p a p e r . T h e B o a rd a ls o a c te d to e li m i n a te g ra d u a lly th e re s e r v e - f r e e b a s e s still h e ld b y s o m e b a n k s s u b je c t to th is m e a s u re . 3 . S u s p e n d th e c e ilin g s th a t a p p ly to th e ra te o f in te re s t c o m m e rc ia l b a n k s m a y p a y o n c e rtifi c a te s o f d e p o s it o f $ 1 0 0 ,0 0 0 a n d o v e r (la rg e C D ’s) th a t m a tu re in 9 0 d a y s o r m o r e , e ffe c tiv e im m e d i a te ly . 4 . A t th e s a m e tim e , th e B o a rd p ro p o s e d a r e g u la to ry a m e n d m e n t th a t w o u ld a p p ly re s e r v e r e q u ir e m e n ts to fu n d s ra is e d b y b a n k s th ro u g h s a le s o f fin a n c e b ills ( s o m e tim e s c a lle d w o rk in g c a p ita l a c c e p ta n c e s ) . If a d o p te d , th e a m e n d m e n t w o u ld s u b je c t th e a m o u n t o f fin a n c e b ills c u rre n tly o u ts ta n d in g to a 5 p e r c e n t re s e rv e r e q u ire m e n t. (T h e re is p r e s e n tly n o re s e r v e re q u ir e m e n t o n fin a n c e b i ll s .) In a d d itio n , u n d e r th is p r o p o s a l, fin a n c e b ills w o u ld b e p a r t o f th e to ta l o b lig a tio n s s u b je c t to th e 8 p e r c e n t m a r g in a l re s e rv e r e q u ir e m e n t. * * * F o r p u r p o s e s o f c o m p u tin g th e 8 p e r c e n t re s e r v e r e q u ir e m e n t, a b a n k w o u ld c o m p a r e its d a ily a v e ra g e o u ts ta n d in g a m o u n t o f fin a n c e b ills , la rg e C D ’s , a n d b a n k - re la te d c o m m e rc ia l p a p e r to th e d a ily - a v e r a g e a m o u n t o u ts ta n d in g o n th e b a s e d a te — th e w e e k e n d in g M a y 16, 1 9 7 3 , o r to $ 1 0 m illio n , w h ic h e v e r is la rg e r. U n d e r th e p r e s e n t r e g u la tio n a s a m e n d e d , h o w e v e r , m a rg in a l re s e rv e r e q u ir e m e n ts w ill b e b a s e d o n th e to ta l a m o u n t o f la rg e C D ’s a n d b a n k - re la te d c o m m e rc ia l p a p e r. T h e m a rg in a l re s e rv e r e q u ir e m e n t o n la rg e tim e d e p o s its a n d c o v e re d c o m m e rc ia l p a p e r is s u e d b y a ffilia te s w ill a p p ly to th e e x c e s s o f d e p o s its o v e r th e b a s e p e r io d b e g in n in g in th e s ta te m e n t w e e k s ta rtin g J u n e 7 . T h e s e r e s e r v e s w ill h a v e to b e h e ld in th e w e e k s ta r tin g J u n e 2 1 . T h e a c tio n s w e re ta k e n a g a in s t th e b a c k g ro u n d o f a n u n u s u a lly s tro n g e x p a n s io n in b a n k c re d it, s tim u la te d to a c o n s id e r a b le e x te n t b y in c r e a s e d b u s in e s s s p e n d in g f o r c a p ita l in v e s tm e n t a n d in v e n to ry a c c u m u la tio n . T h e a c tio n s w ill h e lp th e p r e s e n t p o lic y o f m o n e ta ry r e s tr a in t to m o d e r a te th is e x p a n s io n . R e c e n t g r o w th in b a n k c r e d it to m a jo r b u s in e s s c o r p o ra tio n s h a s b e e n fin a n c e d in la rg e p a r t b y in c re a s e s in th e is s u a n c e o f m o n e y m a r k e t- ty p e in s tr u m e n ts o f th e k in d s c o v e re d b y th e a c tio n ta k e n to d a y b y th e B o a r d . B u s in e s s b o r r o w in g fro m c o m m e r c ia l b a n k s i n c re a s e d b y a b o u t $ 1 5 b illio n d u r in g th e first 4 m o n th s o f th is y e a r. T h is in c r e a s e w a s o n ly p a r tia lly o ffs e t b y th e r e d u c e d u s e o f c o m m e rc ia l p a p e r b y b u s in e s s e s to o b ta in f u n d s . C o m m e r c ia l b a n k s o b ta in e d f u n d s to m e e t th e d e m a n d fo r a ris in g v o lu m e o f b u s in e s s lo a n s la rg e ly th r o u g h th e s a le o f la rg e n e g o tia b le C D ’s , w h ic h a ls o in c r e a s e d b y a b o u t $ 1 5 b illio n o v e r th is p e r io d . M arginal R e se rv e o n L arge D e n o m in a tio n CD’s T h e n e w 8 p e r c e n t m a rg in a l re s e rv e r e q u ir e m e n t w ill a p p ly to th e to ta l o f s i n g le - m a tu r ity , la rg e -d e n o m in a tio n C D ’s a n d b a n k - re la te d c o m m e rc ia l p a p e r is s u e d b y a m e m b e r b a n k b e g in n in g J u n e 7 , to th e e x te n t th a t th is v o lu m e e x c e e d s th e a v e r a g e a m o u n t o u ts ta n d in g in th e s ta te m e n t w e e k e n d in g M a y 16. In n o c a s e w ill th e m a rg in a l re s e r v e a p p ly to a n a m o u n t o u ts ta n d in g o f le s s th a n $ 1 0 m illio n . F o r e x a m p le , if a m e m b e r b a n k h a d o u ts ta n d in g a to ta l o f $ 2 0 m illio n o f la rg e C D ’s a n d b a n k r e la te d c o m m e rc ia l p a p e r o n a v e ra g e d u r in g th e w e e k e n d in g M a y 16, 1 9 7 3 , a n d in c r e a s e d th a t a m o u n t to $ 2 5 m illio n b y th e w e e k e n d in g J u n e 13, th e b a n k w o u ld b e s u b je c t to a n 8 p e r c e n t re s e rv e r e q u ir e m e n t o n th e a d d itio n a l $ 5 m il lio n — o r a $ 4 0 0 ,0 0 0 r e s e r v e . W ith o u t th is c h a n g e in th e r e g u la tio n , th e r e s e r v e r e q u ir e m e n t o n th e a d d itio n a l $5 m illio n w o u ld b e 5 p e r c e n t— o r $ 2 5 0 ,0 0 0 . T h e b a s e fo r c o m p u tin g th e m a rg in a l re s e rv e r e q u ir e m e n t w ill r e m a in th e s a m e fo r e a c h in d i v id u a l b a n k — th e w e e k e n d in g M a y 16, 1 9 7 3 , o r $ 1 0 m illio n , w h ic h e v e r is g r e a te r — re g a r d le s s o f th e le v e l o f its C D a n d c o m m e rc ia l p a p e r h o ld in g s in th e fu tu re . U n d e r th e la g g e d r e s e r v e s y s te m n o w in e f fe c t, a m e m b e r b a n k is r e q u ir e d to h o ld r e s e r v e s d u r in g a n y g iv e n w e e k b a s e d o n th e le v e l o f its d e p o s its 2 w e e k s e a r lie r . T h u s , a b a n k in th is in s ta n c e w ill b e re q u ir e d to h o ld th e 8 p e r c e n t m a rg in a l re s e rv e d u rin g th e w e e k o f J u n e 2 1 - 2 7 , b a s e d o n th e le v e l o f its d e p o s its d u r in g th e w e e k o f J u n e 7 - 1 3 . It w ill h o ld th e 8 p e r c e n t m a r g in a l r e s e rv e o n ly to th e e x te n t th a t its a g g re g a te to ta l o f la rg e C D ’s a n d b a n k - re la te d c o m m e r c ia l p a p e r e x c e e d s th e to ta l a m o u n t o u ts ta n d in g d u r in g th e w e e k e n d in g M a y 16, 1 9 7 3 . ANNOUNCEMENTS E u ro -d o llar R e se rv e R e q u ire m e n t L a s t S e p te m b e r 7 , th e B o a rd p ro p o s e d to r e d u c e its m a rg in a l re s e r v e r e q u ir e m e n t o n c e rta in fo re ig n b o r ro w in g s o f U .S . b a n k s , p rim a rily E u r o - d o lla r s , fro m 2 0 p e r c e n t to 10 p e r c e n t a n d to e lim in a te th e r e s e rv e - fre e b a s e s a v a ila b le to b a n k s s u b je c t to th is re s e rv e r e q u ire m e n t. A r e s e rv e re q u ir e m e n t o n E u r o - d o lla r tr a n s a c tio n s w a s first im p o s e d in 1969 to m o d e ra te s h o r t-te r m d o lla r flo w s b e tw e e n th e U n ite d S ta te s a n d o th e r c o u n tr ie s . R e d u c tio n o f th is re s e rv e r e q u ir e m e n t to 8 p e r c e n t w ill p r o v id e r o u g h ly p a ra lle l tr e a tm e n t at th e p r e s e n t tim e — so fa r as re s e rv e r e q u ir e m e n ts a re c o n c e r n e d — a m o n g E u r o - d o lla r s , la rg e C D ’s, a n d b a n k -re la te d c o m m e rc ia l p a p e r. A t s o m e fu tu re tim e , o f c o u r s e , it m a y b e d e s ira b le to d e p a r t fro m s u c h p a ra lle l tre a tm e n t. T h e B o a rd a ls o d e c id e d to p h a s e o u t th e r e s e rv e -f re e b a s e s a v a ila b le to b a n k s s u b je c t to th is m a rg in a l re s e rv e r e q u ir e m e n t. B a s e s w ill b e r e d u c e d b y 10 p e r c e n t in e a c h 4 - w e e k c o m p u ta tio n p e rio d b e g in n in g w ith th e p e r io d s ta r tin g J u ly 5. T h is s c h e d u le w ill r e s u lt in e lim in a tio n o f th e b a s e s in th e c o m p u ta tio n p e r io d b e g in n in g M a rc h 14, 1974. S u s p e n s io n o f L arge CD C eilin g s T h e B o a rd s u s p e n d e d in te re s t ra te c e ilin g s o n la rg e C D ’s m a tu rin g in 9 0 d a y s o r m o r e , in o rd e r to p e rm it m e m b e r c o m m e rc ia l b a n k s to m a in ta in a b a la n c e d s tru c tu re o f d e p o s its . C e ilin g s p re v io u s ly h a d b e e n s u s p e n d e d o n C D ’s is s u e d fo r 3 0 to 89 d a y s , a n d h a d ra n g e d fro m 6 3A p e r c e n t to I V i p e r c e n t o n lo n g e r -m a tu r ity d e p o s its o f $ 1 0 0 ,0 0 0 a n d o v e r. B e c a u s e o f re c e n t a d v a n c e s in m a r k e t ra te s , th e c e ilin g ra te s o n lo n g e r - m a tu r ity d e p o s its n o w p r a c tic a lly p re c lu d e b a n k s fro m u s in g lo n g -te rm C D ’s, a n d th e g re a t b u lk o f la rg e C D ’s b e in g is s u e d m a tu re in le s s th a n 9 0 d a y s . C e ilin g s o n la rg e C D ’s w ith m a tu ritie s o f le s s th a n 9 0 d a y s w e re s u s p e n d e d in J u n e o f 1 9 7 0 . In te r e s t ra te c e ilin g s w ill re m a in in p la c e o n all o th e r ty p e s o f b a n k d e p o s its , in c lu d in g p a s s b o o k a c c o u n ts a n d c o n s u m e r -ty p e c e rtific a te s o f d e p o s it (th o s e o f le s s th a n $ 1 0 0 ,0 0 0 ). P ro p o s e d A m e n d m e n t o n F in a n c e Bills T h e p r o p o s e d a m e n d m e n t w o u ld a p p ly re s e rv e re q u ir e m e n ts a g a in s t fu n d s o b ta in e d b y th e b a n k fo r u se in its b a n k in g b u s in e s s th r o u g h s a le o f b a n k a c c e p ta n c e s th a t a re n o t e lig ib le f o r d is c o u n t at a F e d e ra l R e s e rv e B a n k . T h e tra d itio n a l ty p e o f b a n k a c c e p ta n c e s th a t a p p ly to sp e c ific tra n s a c tio n s 377 in g o o d s w o u ld c o n tin u e to b e e x e m p t fro m r e s e rv e r e q u ir e m e n ts a n d e lig ib le fo r d is c o u n t b y a F e d e ra l R e s e rv e B a n k . U n d e r th e p r o p o s a l, th e B o a rd w o u ld tr e a t th e s a le o f fin a n c e b ills as e q u iv a le n t to d e p o s its s u b je c t to re s e r v e r e q u ir e m e n ts . A t p r e s e n t, a b o u t $ 1 .1 b illio n in s u c h b ills a re o u ts ta n d in g . U n d e r th e .p r o p o s a l, fu n d s r e c e iv e d b y a b a n k w o u ld b e tre a te d as a d e p o s it if th e m e m b e r b a n k (1 ) m a k e s a n a c c e p ta n c e th a t is n o t e lig ib le fo r d is c o u n t at a F e d e ra l R e s e rv e B a n k , (2 ) th e n s e lls th e a c c e p ta n c e , a n d (3 ) u s e s th e p ro c e e d s in its b a n k in g b u s in e s s . In a re la te d m a tte r, th e B o a rd sa id o n ly a c c e p t a n c e s e lig ib le fo r d is c o u n t a t a F e d e ra l R e s e rv e B a n k w o u ld b e s u b je c t to lim ita tio n s o n a m o u n ts o u ts ta n d in g se t fo rth in S e c tio n 13 o f th e F e d e ra l R e s e rv e A c t. * * * T h e B o a rd u rg e d a ll b a n k s to o b s e rv e th e s p ir it, as w e ll as th e le tte r, o f th e B o a r d ’s a c tio n s in a c o n c e r te d e ffo rt to c u rb b a n k c re d it e x p a n s io n a n d to m o d e ra te in fla tio n a ry p re s s u re s . In th is c o n n e c tio n , a le tte r w a s s e n t to a b o u t 190 o f th e la rg e s t n o n m e m b e r b a n k s s e e k in g th e ir a s s is ta n c e a n d c o o p e r a tio n in e n s u r in g th e e f fe c tiv e n e s s o f th is p ro g ram . CHANGES IN THE DISCOUNT RATE T h e B o a rd o f G o v e rn o rs a p p ro v e d a c tio n s b y th e d ire c to rs o f th e F e d e ra l R e s e r v e B a n k s o f P h ila d e lp h ia , C le v e la n d , R ic h m o n d , A tla n ta , M in n e a p o lis , K a n s a s C ity , a n d S a n F ra n c is c o i n c r e a s in g th e d is c o u n t ra te s o f th o s e b a n k s fro m per c e n t to 5 3A p e r c e n t, e ffe c tiv e A p ril 2 3 . A s im ila r in c re a s e w a s a p p ro v e d fo r th e F e d e ra l R e s e rv e B a n k s o f C h ic a g o , S t. L o u is , a n d D a lla s e ffe c tiv e A p ril 2 7 , fo r th e F e d e ra l R e s e r v e B a n k o f B o s to n e ffe c tiv e M a y 1, a n d f o r th e F e d e ra l R e s e rv e B a n k o f N e w Y o rk e f fe c tiv e M a y 4 . A t th a t tim e th e ra te w a s 5 3A p e r c e n t at a ll F e d e r a l R e s e rv e B an k s. In a n n o u n c in g th e a c tio n , th e B o a rd to o k n o te o f d e v e lo p m e n ts in th e m o n e y m a r k e ts th a t h a v e o c c u r re d s in c e th e d is c o u n t r a te w a s r a is e d to 5 V2 p e r c e n t, e ffe c tiv e o n F e b r u a ry 2 6 . T h e B o a rd s u b s e q u e n tly a p p r o v e d a c tio n s b y th e d ir e c to r s o f th e F e d e ra l R e s e rv e B a n k s o f B o s to n , N e w Y o r k , P h ila d e lp h ia , C le v e la n d , R ic h m o n d , A tla n ta , C h ic a g o , S t. L o u is , M in n e a p o lis , D a lla s , a n d S a n F ra n c is c o in c r e a s in g th e d is c o u n t r a te o f th o s e b a n k s fro m 5 3A p e r c e n t to 6 p e r c e n t, e ffe c tiv e M a y 11. A s im ila r in c r e a s e w a s a p p ro v e d FEDERAL RESERVE BULLETIN □ MAY 1973 378 fo r th e F e d e r a l R e s e rv e B a n k o f K a n s a s C ity , e ffe c tiv e M a y 1 8 , a t w h ic h tim e th e ra te w a s 6 p e r c e n t at all R e s e rv e B a n k s . T h e a c tio n w a s in r e c o g n itio n o f in c re a s e s th a t h a d a lre a d y ta k e n p la c e in o th e r s h o rt- te r m in te r e s t ra te s a n d is in te n d e d to b r in g th e d is c o u n t ra te in to b e tte r a lig n m e n t w ith s h o rt-te rm ra te s g e n e r a lly . T h e d is c o u n t ra te is th e ra te c h a rg e d m e m b e r b a n k s fo r b o r r o w in g s fro m th e ir d is tr ic t F e d e r a l R e s e rv e B a n k s . VOLUNTARY FOREIGN CREDIT RESTRAINT PROGRAM— INTERPRETATIONS T h e f o llo w in g a re s u m m a r ie s o f th e re c e n t in te r p r e ta tio n s o f th e V o lu n ta ry F o re ig n C r e d it R e s tra in t (V F C R ) G u id e lin e s th a t h a v e b e e n is s u e d , u n d e r a u th o r ity d e le g a te d to G o v e r n o r A n d re w F . B r im m e r , to th e F e d e ra l R e s e rv e B a n k s . (F o r te x t o f G u id e lin e s , se e th e B u l l e t i n s fo r N o v e m b e r 1 9 7 1 , p p . 9 0 6 - 1 6 ; fo r M a rc h 1 9 7 2 , p . 3 2 1 ; fo r N o v e m b e r 1 9 7 2 , p . 9 9 5 - 9 6 ; a n d fo r D e c e m b e r 1 9 7 2 , p . 1 0 3 7 .) A c o n s o lid a te d te x t o f th e G u id e lin e s a s a m e n d e d is a v a ila b le fro m F e d e r a l R e s e rv e B a n k s a n d fro m th e B o a rd . N o n b an k F in an cial In stitu tio n s’ A c q u isitio n of C ertain F o re ig n E q u itie s from A m erican In v e sto rs G u id e lin e p r o v is io n E q u ity s e c u ritie s ( in c lu d in g th o s e r e p re s e n te d b y A m e ric a n D e p o s ita ry R e c e ip ts (A D R )) o f f o re ig n c o r p o ra tio n s e s ta b lis h e d in d e v e lo p e d c o u n tr ie s o th e r th a n C a n a d a a re g e n e r a lly s u b je c t to r e s tra in t (s e c tio n I I I-D -6 ). A s a n e x c e p tio n , re s tra in t d o e s n o t a p p ly if su c h s e c u ritie s w e r e a c q u ire d a fte r S e p te m b e r 3 0 , 1 9 6 5 , in U .S . m a rk e ts fro m A m e ric a n in v e s to rs (s e c tio n II I-E -5 ). I n te r p r e ta tio n W h e r e a n o n b a n k fin a n c ia l in s titu tio n (N B F I) p u r c h a s e s s u c h e q u ity s e c u ritie s a fte r S e p te m b e r 3 0 , 1 9 6 5 , f r o m a n A m e r i c a n b r o k e r , th e p u rc h a s in g N B F I m a y tre a t th e m as e x e m p t f ro m its o w n c e ilin g o n l y if: (1 ) th e b r o k e r h a d a c q u ire d th e m d ire c tly fro m a f o r e ig n e r ; h a d ta k e n th e m u n d e r h is V F C R c e ilin g ; a n d h a d re d u c e d h is c e ilin g w h e n h e r e s o ld th o s e s e c u ritie s , or (2) th e b r o k e r h a d a c q u ir e d th e m fro m a n o th e r A m e ric a n in v e s to r; h a d n o t ta k e n th e m u n d e r h is (th e b r o k e r ’s) V F C R c e i l in g ; a n d d id n o t r e d u c e h is V F C R c e ilin g w h e n h e so ld th e m to th e n e x t p u r c h a s in g N B F I. B r o k e rs s o m e tim e s d o , a n d s o m e tim e s d o n o t, p a y th e In te re s t E q u a liz a tio n T a x (IE T ) w h e n th e y a c q u ire su c h s e c u ritie s d ir e c tly fro m a f o r e ig n e r . P a y m e n t b y a b ro k e r o f th e IE T (w h ic h w o u ld o r d in a rily e n title h im to o b ta in a v a lid a tio n c e rtifi c a te o f p rio r A m e ric a n o w n e r s h ip o r w o u ld o t h e r w is e e n title h im to is s u e a b r o k e ra g e c o n firm a tio n o f p r io r A m e r ic a n o w n e r s h ip — h e b e in g th e “ p rio r A m e ric a n o w n e r ” in e ith e r c a s e ) is n o t su ffic ie n t to e s ta b lis h a n e x e m p tio n fro m V F C R re s tr a in t fo r th e b e n e fit o f th e N B F I w h o p u rc h a s e s th e s e c u r i tie s fro m th e b ro k e r. A s th e G u id e lin e s sta te : “ S e c u ritie s a c q u ire d fro m a b ro k e r w h o p u rc h a s e s th e m fro m a fo r e ig n e r in a n tic ip a tio n o f e a rly r e s a le a re n o t d e e m e d to b e a c q u is itio n s fro m a p rio r A m e ric a n i n v e s to r .” If th e p u r c h a s in g N B F I w is h e s th e e x e m p tio n , h e h a s th e r e s p o n s ib ility fo r a s c e rta in in g w h e th e r th e b ro k e r c h a rg e d th e s e c u ritie s a g a in s t h is V F C R c e ilin g a n d th e r e u p o n re d u c e d h is c e ilin g w h e n s e llin g th o s e s e c u ritie s to th a t N B F I. In th e a b s e n c e o f firm k n o w le d g e th a t th e b ro k e r h a n d le d th e tr a n s a c tio n in th a t m a n n e r, th e p u r c h a s in g N B F I s h o u ld a s s u m e th a t th e b ro k e r w a s n o t th e “ p rio r A m e r ic a n o w n e r ” fo r p u rp o s e s o f th e e x e m p tio n p ro v is io n o f th e G u id e lin e s . A n A m e ric a n D e p o s ita r y R e c e ip t ( s e c tio n IIID -6 ) is e v id e n c e o f th e p h y s ic a l re te n tio n a b ro a d o f a fo re ig n s e c u rity . A n A D R s h o u ld n o t b e c o n fu s e d w ith a c e rtific a te in d ic a tin g p r io r A m e r i c a n o w n e r s h ip o f a fo re ig n s e c u rity . In d e p e n d e n t F inancial R E IT s a n d O th e r In d e p e n d e n t N on b an k F inancial In stitu tio n s M anaged by B a n k s o r B ank H olding C o m p a n ie s G u id e lin e p r o v is io n R e a l e s ta te in v e s tm e n t tru s ts ( R E I T ’s) th a t a re fin a n c ia l in c h a r a c te r, a n d o th e r n o n b a n k fin a n c ia l in s titu tio n s ( N B F I ’s ), a n d th a t a re n o t s u b s id ia rie s o f b a n k s o r o f b a n k h o ld in g c o m p a n ie s a re s u b je c t to th e N B F I p a r t o f th e V F C R G u id e lin e s (s e c tio n III-A ). I n te r p r e ta tio n Q u e s tio n s h a v e b e e n a s k e d as to th e a p p lic a b ility o f th e G u id e lin e s to U .S . fin a n c ia l in s titu tio n s th a t are n o t s u b s id ia rie s o f b a n k s o r o f b a n k h o ld in g c o m p a n ie s b u t th a t a re a d v is e d o r m a n a g e d b y b a n k s o r b y s u b s id ia rie s o f b a n k h o ld in g c o m p a n ie s . T h e ty p ic a l c a s e h a s b e e n th a t o f a n R E IT th a t is n o t o w n e d s u b s ta n tia lly o r at all b y a b a n k o r b a n k h o ld in g c o m p a n y b u t th a t is a d v is e d o r ANNOUNCEMENTS m a n a g e d b y a s u b s id ia ry o f a b a n k h o ld in g c o m pany. A fin a n c ia l in s titu tio n th a t is u n r e la te d to a b a n k , to a b a n k h o ld in g c o m p a n y , o r to a b a n k h o ld in g c o m p a n y s u b s id ia r y o th e r th a n th ro u g h a m a n a g e m e n t o r a d v is o ry a r ra n g e m e n t s h o u ld b e tre a te d as a n N B F I f o r th e p u r p o s e s o f th e G u id e lin e s . ( C o n v e r s e ly , b a n k h o ld in g c o m p a n y s u b s id ia r ie s , as d e fin e d in th e B a n k H o ld in g C o m p a n y A c t o f 1 9 5 6 , as a m e n d e d , a re to b e tre a te d u n d e r th e b a n k p a rt o f th e G u id e lin e s in a c c o r d a n c e w ith II-D -1 a n d 3 b .) S u c h a n in d e p e n d e n t N B F I w o u ld e ith e r a lre a d y h a v e a V F C R c e ilin g (s e c tio n III -C ) o r w o u ld b e e n title d to u se th e a u to m a tic m in im u m c e ilin g o f $ 5 0 0 ,0 0 0 (III -J -2 ). In a d d itio n , su c h a n N B F I m a y h o ld “ c o v e r e d ” f o re ig n a s s e ts in e x c e s s o f $ 5 0 0 ,0 0 0 to th e e x te n t it o ffs e ts th o s e a s s e ts b y o u t s ta n d in g fo re ig n b o r r o w in g s ( I I I - J - 1 ) , as in te r p re te d in th e F e d e r a l R e s e rv e B u l l e t i n , M a y 1972, pp. 5 0 9 -1 0 . S u c h a n N B F I m a y u s e , as th e c a s e m a y b e , its r e g u la r c e ilin g o r its a u to m a tic m in im u m c e ilin g fo r f o re ig n le n d in g a n d in v e s tm e n t: (1 ) u n d e r ta k e n a t its o w n in itia tiv e a n d n o t at th e in itia tiv e , o r fo r th e c o n v e n ie n c e , o f a b a n k o r b a n k h o ld in g c o m p a n y to w h ic h it is r e la te d th r o u g h a m a n a g e m e n t o r a d v is o ry a r ra n g e m e n t; (2 ) fo r w h ic h th e N B F I a s s u m e d th e p rin c ip a l b u r d e n o f ju d g in g th e c re d itw o r th in e s s o f th e b o r r o w e r ; a n d (3 ) b o re re s p o n s ib ility fo r th e a d m in is tr a tiv e d e ta ils c o n c e rn in g th e e x te n s io n a n d th e r e p a y m e n t o f th e c re d it. C o n v e r s e ly , th e N B F I sh o u ld r e fr a in fro m m a k in g a n y n o n e x p o rt lo a n s o r in v e s tm e n ts , c o v e re d as w e ll as u n c o v e r e d , th a t a p p e a r to b e i n c o n s is te n t w ith th e U .S . b a la n c e o f p a y m e n ts p r o g r a m . A m o n g o th e r th in g s , it s h o u ld n o t a c q u ire n o n c o v e re d c r e d its — su c h as lo a n s o f o v e r 1 0 y e a r s ’ m a tu rity to d e v e lo p in g c o u n tr ie s — th a t s u b s titu te d ire c tly fo r lo a n s th a t c o m m e rc ia l b a n k s w o u ld h a v e m a d e in th e a b s e n c e o f th e G u id e lin e s as th e y a p p ly to th o s e b a n k s (III -B -5 ). E xport C red it— C u sto m a ry M aturity G u id e lin e p r o v is io n “ A c r e d it th a t is o f s u b s ta n tia lly lo n g e r m a tu rity th a n is c u s to m a r y in in te rn a tio n a l e x p o rt f in a n c in g p ra c tic e fo r th e ty p e o f tra n s a c tio n in q u e s tio n s h o u ld n o t b e re g a rd e d as a n e x p o r t c r e d i t ” ( s e c tio n I V -3 - la s t p a r a g r a p h ) . I n te r p r e ta tio n T h e fo llo w in g in te r p r e ta tio n s w e re b a s e d o n in f o r m a tio n c o n c e r n in g p r a c tic e s p re v a ilin g a t th e tim e (e a rly 1 9 7 3 ). 379 A c r e d it o f 3 y e a r s ’ m a tu rity to fin a n c e th e sa le o f U .S . w h e a t to a f o r e ig n e r m a y b e c o n s id e r e d an e x p o r t c re d it. A c re d it o f 5 y e a r s ’ m a tu rity to fin a n c e th e sa le o f U .S . w h e a t a b ro a d w o u ld s u b s ta n tia lly e x c e e d th e c u s to m a ry te rm a n d , t h e r e f o r e , s h o u ld n o t b e tre a te d as a n e x p o rt c r e d it. A ls o , it w o u ld n o t b e c o n s is te n t w ith th e G u id e lin e e x e m p tio n fo r th e le n d in g b a n k o r N B F I to d iv id e th e c r e d it in to tw o c re d its fo r 3 y e a rs a n d fo r 2 e n s u in g y e a r s w ith a v ie w to tr e a tin g th e e a rly m a tu rity o f th e o v e r-a ll c re d it as a n e x p o r t c r e d it. C re d its o f b e tw e e n 15 a n d 17 y e a rs to fin a n c e s a le s , o r fin a n c ia l le a s e , a b ro a d o f la rg e U .S .- m a d e je t a irc r a ft ( M c D o n n e ll- D o u g la s D C - 9 ’s a n d D C 1 0 ’s a n d B o e in g 7 4 7 ’s) s h o u ld b e tre a te d a s e x p o r t c re d its . FEDERAL OPEN MARKET COMMITTEE MINUTES T h e F e d e r a l R e s e rv e h a s a n n o u n c e d th a t m in u te s o f d is c u s s io n s a n d a c tio n s a t th e m e e tin g s o f th e F e d e ra l O p e n M a r k e t C o m m itte e d u r in g 196 7 h a v e b e e n tra n s f e rr e d to th e N a tio n a l A rc h iv e s . T h e s e m in u te s a re c o n ta in e d in a p p r o x im a te ly 1 ,5 0 0 p a g e s o f ty p e d m a te ria l. T h e ir tr a n s f e r h a s b e e n a rra n g e d o n th e u n d e r s ta n d in g th a t th e N a tio n a l A rc h iv e s w ill m a k e th e m a v a ila b le fo r in s p e c tio n b y in te re s te d p e r s o n s u n d e r its u s u a l ru le s a n d p ro c e d u re s . S im ila r re c o rd s fo r e a r lie r y e a r s a re a lre a d y a v a ila b le a t th e N a tio n a l A rc h iv e s o n th e s a m e b a s is ; m in u te s o f th e C o m m itte e fo r 1 9 3 6 th ro u g h 196 0 w e r e tra n s f e rr e d in 1 9 6 4 , th o s e f o r 1961 w e re tra n s fe r re d in 1 9 6 7 , th o s e f o r 1 9 6 2 th r o u g h 1965 w e re tra n s f e rr e d in 1 9 7 0 , a n d th o s e fo r 1 9 6 6 w e re tra n s fe rre d la s t y e a r. T h e N a tio n a l A rc h iv e s w ill f u rn is h c o m p le te m ic ro film c o p ie s o f th e s e e a r lie r m in u te s fo r a f e e , a n d w ill b e p r e p a re d la te r to fu r n is h s im ila r c o p ie s o f th e 1967 m in u te s . C o p ie s o f th e m in u te s fo r 1967 a ls o w ill b e m a d e a v a ila b le la te r fo r p u b lic in s p e c tio n a t th e B o a r d ’s offices in W a s h in g to n a n d a t e a c h F e d e r a l R e s e rv e B a n k a n d B ra n c h , th e s a m e p r o c e d u r e fo llo w e d w ith r e s p e c t to e a r lie r r e c o r d s . M e a n w h ile , a w o rk c o p y is a v a ila b le fo r in s p e c tio n a t th e B o a r d ’s o ffic e s, a n d a n o th e r a t th e F e d e r a l R e s e rv e B a n k o f N e w Y o rk . R e le a s e o f th e m in u te s fro m 1 9 6 2 o n h a s p r e se n te d s p e c ia l p r o b le m s in v o lv in g in te r n a tio n a l fin a n c ia l re la tio n s h ip s , an a re a in w h ic h F e d e r a l R e s e rv e a c tiv ity h a s in c re a s e d c o n s id e r a b ly in r e c e n t y e a r s . A s in th e c a s e o f th e 1 9 6 2 --6 6 m in u te s , a n u m b e r o f p a s s a g e s h a v e b e e n d e le te d fro m th e FEDERAL RESERVE BULLETIN □ MAY 1973 380 1967 m in u te s , w ith a fo o tn o te in e a c h c a s e in d i c a tin g th e g e n e r a l n a tu r e o r s u b je c t o f th e d e le te d m a tte r. BANKING DATA ON REPO RTS OF CONDITION AND INCOME O n A p ril 2 0 , 1 9 7 3 , th e B o a rd o f G o v e r n o r s a n n o u n c e d a v a ila b ility to th e p u b lic o f d a ta re p o rte d q u a r te r ly b y in d iv id u a l b a n k s to F e d e ra l b a n k in g a g e n c ie s in th e ir official R e p o rts o f C o n d itio n a n d a n n u a lly in th e ir In c o m e a n d D iv id e n d s r e p o rt, b e g in n in g w ith d a ta fo r D e c e m b e r 1 9 7 2 . P r e v io u s ly , o n ly d a ta fro m th e fa c e o f th e R e p o rt o f C o n d itio n h a d b e e n a v a ila b le . D a ta n o w in c lu d e b o th th e fa c e o f th e R e p o r t o f C o n d itio n a n d s u p p o rtin g s c h e d u le s fo r lo a n s , c a s h a s s e ts , a n d d e m a n d a n d tim e d e p o s its , as w e ll as all d a ta o n th e In c o m e a n d D iv id e n d s re p o rt. T h e B o a rd w ill f u r n is h u p o n re q u e s t m a g n e tic ta p e s , in c lu d in g d o c u m e n ta tio n o f th e d a ta . T h e 9 - tr a c k , 8 0 0 - B P I ta p e s id e n tify b y n a m e , lo c a tio n , a n d s u p e rv is o ry c h a r te r - c la s s all c o m m e rc ia l b a n k s in th e U n ite d S ta te s th a t a re in s u r e d b y th e F e d e ra l D e p o s it I n s u ra n c e C o r p o r a tio n . a c c o m p a n ie d b y c h e c k s m a d e p a y a b le to th e B o a rd . C o p ie s o f in d iv id u a l re p o rts o f S ta te m e m b e r b a n k s m a y b e o b ta in e d b y w ritin g to th e B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m o r to th e a p p r o p ria te F e d e ra l R e s e r v e B a n k . R e q u e s ts fo r in d iv id u a l r e p o rts o f n a t i o n a l b a n k s s h o u ld b e a d d r e s s e d to th e C o m p tr o lle r o f th e C u r r e n c y , T r e a s u r y D e p a r tm e n t, W a s h in g to n , D .C . 2 0 2 2 0 ; th o s e fo r i n s u r e d n o n m e m b e r b a n k s sh o u ld b e a d d re s s e d to th e F e d e ra l D e p o s it I n s u r a n c e C o r p o r a tio n , W a s h in g to n , D .C . 2 0 4 2 9 . CHANGES IN OTC MARGIN STOCK S T h e B o a rd o f G o v e r n o r s h a s a n n o u n c e d se v e ra l c h a n g e s , e ffe c tiv e A p ril 2 3 , 1 9 7 3 , in its “ L is t o f O T C M a rg in S to c k s ” th a t w a s is s u e d in re v is e d fo rm o n M a y 15, 1 9 7 2 . T h e lis t w a s s u b s e q u e n tly a m e n d e d o n J u ly 3 , 1 9 7 2 , a n d N o v e m b e r 2 , 197 2 . C h a n g e s a re a v a ila b le in m im e o g r a p h e d fo rm fro m P u b lic a tio n s S e r v ic e s , D iv is io n o f A d m in is tra tiv e S e rv ic e s , B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m , W a s h in g to n , D .C . 2 0 5 5 1 . PUBLICATION OF ANNUAL REPORT $ 1 5 0 .0 0 5 0 .0 0 5 0 .0 0 T h e F if ty - N in th A n n u a l R e p o rt o f th e B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m , c o v e r in g o p e ra tio n s f o r th e c a le n d a r y e a r 1 9 7 2 , is a v a ila b le fo r d is tr ib u tio n . C o p ie s m a y b e o b ta in e d u p o n r e q u e s t to P u b lic a tio n s S e rv ic e s , D iv is io n o f A d m in is tr a tiv e S e r v ic e s , B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m , W a s h in g to n , D .C . 20551. 2 . F a c e a n d b a c k o f R e p o rt o f C o n d itio n w ith d e ta ile d s c h e d u le s fo r D e c e m b e r 1 9 7 2 a n d q u a r te rly th e r e a f te r — $ 5 0 .0 0 p e r ta p e fo r e a c h d a te . ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM T h e p ric e s f o r th e s e ta p e s o f d a ta a re as fo llo w s : R e p o rts o f C o n d itio n 1. F a c e o f R e p o r t o f C o n d itio n , d a te s fro m J u n e 1 9 6 0 to J u n e 1 9 7 2 . s e m ia n n u a l J u n e 1 9 6 0 -J u n e 1971 (a se t) ............. D e c . 1971 (o n e ta p e ) ................ Ju n e 1972 (o n e ta p e ) ................ R e p o rts of In co m e a n d D iv id en d s D ecem ber 197 2 a n d a n n u a lly $ 5 0 .0 0 p e r ta p e fo r e a c h d a te . th e r e a fte r — T h e B o a rd a ls o w ill m a k e a v a ila b le in d iv id u a l c o p ie s o f o r ig in a l re p o rts fo r s p e c i f i e d S t a t e m e m b e r b a n k s at 10 c e n ts p e r s ta n d a rd p a g e , p lu s a fe e o f $ 5 .0 0 a n h o u r f o r lo c a tin g th e re q u e s te d re p o rts . R e q u e s ts fo r ta p e s s h o u ld b e m a d e in w ritin g to th e B o a rd o f G o v e r n o r s o f th e F e d e ra l R e s e rv e S y s te m , W a s h in g to n , D .C . 2 0 5 5 1 , a n d sh o u ld be T h e fo llo w in g b a n k s w e re a d m itte d to m e m b e rs h ip in th e F e d e ra l R e s e rv e S y s te m d u r in g th e p e rio d A p ril 16, 1 9 7 3 , th ro u g h M a y 15, 1 9 7 3 : F lo r id a T a m p a ...............................I n te rb a y C itiz e n s B a n k V ir g in ia B a ile y s C r o s s r o a d s ... H a m ilto n B a n k a n d T ru s t C o m p a n y S ta f f o r d .............................A q u ia B a n k a n d T r u s t C om pany National Summary of Business Conditions R eleased for publication May 15 In d u s tr ia l p r o d u c tio n a d v a n c e d s tro n g ly in A p ril, n o n fa rm e m p lo y m e n t ro s e f u r th e r , a n d th e u n e m p lo y m e n t r a te w a s u n c h a n g e d . R e ta il s a le s d e c lin e d . T h e w h o le s a le p r ic e in d e x a g a in in c re a s e d s u b s ta n tia lly . C o m m e r c ia l b a n k c r e d it, th e m o n e y s to c k , a n d tim e a n d s a v in g s d e p o s its ro s e . B e tw e e n m id -A p r il a n d m id - M a y , y ie ld s o n U .S . G o v e r n m e n t n o te s a n d b o n d s r o s e , w h ile c o rp o ra te a n d m u n ic ip a l y ie ld s d e c lin e d s o m e w h a t. EMPLOYMENT INDUSTRIAL PRODUCTION RETAIL SALES In d u s tria l p ro d u c tio n in c re a s e d 1 .0 p e r c e n t fu r th e r in A p ril fo llo w in g a n 0 .6 p e r c e n t ris e in M a r c h . A t 1 2 3 .0 p e r c e n t o f th e 19 6 7 a v e r a g e , th e A p ril in d e x w a s 9 .0 p e r c e n t a b o v e a y e a r e a rlie r . T h e v a lu e o f re ta il s a le s d e c lin e d 1 .5 p e r c e n t in A p ril f o llo w in g a s h a rp ris e in M a r c h a n d w a s 14 p e r c e n t a b o v e a y e a r e a r lie r , a c c o r d in g to th e a d v a n c e r e p o rt. N o n f a rm p a y ro ll e m p lo y m e n t ro s e f u r th e r in A p r il, w ith la rg e g a in s r e p o rte d in m a n u f a c tu r in g a n d S ta te a n d lo c a l g o v e r n m e n t e m p lo y m e n t. T h e f a c to ry w o r k w e e k in c r e a s e d b y 0 .2 h o u r , a n d a t 4 1 .1 h o u rs w a s a t its h ig h e s t le v e l s in c e th e e n d o f 1 9 6 6 . T h e u n e m p lo y m e n t ra te w a s u n c h a n g e d a t 5 .0 p e r c e n t as th e c iv ilia n la b o r fo r c e a n d to ta l e m p l o y m e n t s h o w e d little c h a n g e . WHOLESALE AND CONSUMER PRICES T h e w h o le s a le p ric e in d e x , a f te r s e a s o n a l a d ju s t m e n t, ro s e 1 .0 p e r c e n t b e tw e e n M a rc h a n d A p ril la rg e ly as a r e s u lt o f w id e s p r e a d in c r e a s e s in p ric e s o f in d u s tria l c o m m o d itie s . T h e in d e x o f in d u s tria l c o m m o d itie s in c re a s e d 1.3 p e r c e n t, b u t th e in d e x o f fa rm a n d fo o d p r o d u c ts ro s e o n ly 0 .1 p e r c e n t. T h e c o n s u m e r p r ic e in d e x ro s e 0 .8 p e r c e n t, s e a s o n a lly a d ju s te d , in M a rc h a s fo o d p ric e s c lim b e d fo r th e th ird s u c c e s s iv e m o n th . P ric e s o f o th e r c o m m o d itie s a n d o f s e rv ic e s w e r e u p 0 .3 p e r c e n t. AGRICULTURE F .R . in d e x e s , se a s o n a lly ad ju sted . L atest figures: A pril. T h e g a in s in o u tp u t w e re w id e s p r e a d a n d r a th e r e v e n ly d is tr ib u te d a m o n g c o n s u m e r g o o d s , b u s i n e ss e q u ip m e n t, a n d m a te ria ls . P ro d u c tio n o f f u r n itu r e , ro o m a ir c o n d itio n e r s , s o m e h o u s e h o ld a p p lia n c e s , a n d n o n d u r a b le c o n s u m e r g o o d s ro s e fu r th e r in A p r il. O u tp u t o f te le v is io n se ts w a s m a in ta in e d a t a d v a n c e d le v e ls . A u to a s s e m b lie s w e re a t a n a n n u a l ra te o f 9 .9 m illio n u n its c o m p a re d w ith a 10.1 m illio n ra te in M a r c h . M a y s c h e d u le s a re at a b o u t th e M a rc h -A p r il le v e l. G a in s in p r o d u c tio n o f b u s in e s s e q u ip m e n t c o n tin u e d la rg e a n d w e r e w id e s p r e a d . O u tp u t o f ste e l a n d m o s t o th e r d u r a b le a n d n o n d u r a b le in d u s tria l m a te ria ls in c re a s e d fu rth e r . H e a v y ra in s h a v e d e la y e d th e p la n tin g o f c o tto n , c o r n , a n d s o y b e a n s , b u t s u b s ta n tia l p o r tio n s o f s p rin g w h e a t a n d o th e r sm a ll g ra in s a re in th e g ro u n d . F lo o d in g in th e M is s is s ip p i D e lta a n d so g g y b o tto m la n d s e ls e w h e r e h a v e c a u s e d s o m e sh ifts in c ro p p in g p la n s fro m c o tto n -and c o rn to so y b ean s. P ric e s r e c e iv e d b y f a rm e r s fe ll 1 .5 p e r c e n t d u r in g th e m o n th e n d in g A p ril 15, th e first m o n th ly d e c lin e in a y e a r , m a in ly b e c a u s e o f lo w e r liv e s to c k p r ic e s . BANK CREDIT, DEPOSITS, AND RESERVES C o m m e rc ia l b a n k c r e d it, a fte r a d ju s tm e n t fo r tr a n s fe rs o f lo a n s b e tw e e n b a n k s a n d th e ir a ffili 381 FEDERAL RESERVE BULLETIN □ MAY 1973 382 a te s , ro s e a t a n a n n u a l ra te o f a b o u t 6 p e r c e n t in A p ril in c o n tr a s t w ith th e v e ry r a p id 2 0 p e r c e n t ra te o f th e first q u a rte r. G r o w th in b u s in e s s lo a n d e m a n d s m o d e r a te d b u t still r e m a in e d s tro n g . R e a l e s ta te a n d c o n s u m e r lo a n s c o n tin u e d to in c r e a s e a t a s u b s ta n tia l p a c e b u t m o s t o th e r lo a n c a te g o r ie s w e re s o m e w h a t w e a k e r in A p ril th a n in o th e r r e c e n t m o n th s . H o ld in g s o f U .S . T r e a s u r y s e c u ritie s w e re u n c h a n g e d a n d b a n k s r e d u c e d th e ir h o ld in g s o f o th e r s e c u ritie s . T h e n a r ro w ly d e fin e d m o n e y s to c k in c r e a s e d a t a n a n n u a l ra te o f 8 p e r c e n t in A p ril, o r c o n s i d e ra b ly fa s te r th a n in th e first q u a r te r. T im e a n d s a v in g s d e p o s its o th e r th a n la rg e n e g o tia b le C D ’s r e m a in e d m o d e r a te ly s tro n g in c r e a s in g at a n a n n u a l ra te o f a b o u t 9 p e r c e n t, little d iff e re n t fro m th e first q u a r te r p a c e . N e t s a le s o f n e g o tia b le C D ’s c o n tin u e d la rg e in A p ril b u t b e lo w th e re c o r d le v e ls o f F e b r u a ry a n d M a r c h . N e t b o r r o w e d r e s e rv e s a v e r a g e d a b o u t $ 1 ,4 2 0 m illio n o v e r th e 4 w e e k s e n d e d A p ril 2 5 , s o m e w h a t b e lo w th e $ 1 ,6 6 0 m illio n a v e ra g e in M a r c h . M e m b e r b a n k b o r r o w in g s d e c lin e d a n d e x c e s s r e s e rv e s ro s e . PRICES INTEREST RATES Wholesale 1967=100 Consumer j ~ 130 - - SECURITIES MARKETS T r e a s u r y b ill ra te s w e re a b o u t u n c h a n g e d o n b a l a n c e b e tw e e n m id - A p r il a n d m id - M a y , w ith th e in c r e a s e s o c c u r r in g in th e lo n g e r m a tu r itie s . T h e 3 - m o n th b ill w a s b id a t a r o u n d 6 .1 5 p e r c e n t in th e m id d le o f M a y , a b o u t u n c h a n g e d fro m a m o n th e a r lie r. Y ie ld s o n U .S . G o v e r n m e n t n o te s a n d b o n d s ro s e b y s o m e 10 to 25 b a s is p o in ts o v e r th e s a m e p e rio d . Y ie ld s o n n e w a n d r e c e n tly o ffe re d d e b t s e c u r i tie s d e c lin e d s te a d ily fr o m m id -A p ril to m id - M a y , a n d y ie ld s o n lo n g -te rm m u n ic ip a l b o n d s d e c lin e d o n b a la n c e . C o m m o n s to c k p r ic e s d e c lin e d o n b a la n c e o n m o d e r a te v o lu m e o v e r th e s a m e p e rio d . PER CENT . - ALL ITEMS^/^ ALL COMMODITIES. _ 120 - 110 s' ' 100 1 B u reau o f L abor S ta tistic s. “ Farm p rod u cts and f o o d s ” is B L S “ Farm p ro d u cts, and p r o c e ss e d fo o d s and f e e d s .” L atest figures: C o n su m e r , M arch ; W h o le s a le , A p ril. D is c o u n t rate, ran ge or le v e l for all F .R . B a n k s. W e e k ly a v era g e m arket y ie ld s for U .S . G o v t, b o n d s m atu rin g in 10 y ea rs or m o re and for 9 0 -d a y T reasu ry b ills. L a test figures: w e e k e n d in g M a y 12. A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 A A A A A A A A 7 8 9 10 11 12 14 15 Member bank reserves, Federal Reserve Bank credit, and related items Federal funds— Major reserve city banks Reserve Bank interest rates Reserve requirements Maximum interest rates; margin requirements Open market account Federal Reserve Banks Bank debits U.S. currency A A A A A A A A A A A A 16 17 18 24 29 30 31 31 32 35 36 37 Money stock Bank reserves; bank credit Commercial banks, by classes Weekly reporting banks Business loans of banks Demand deposit ownership Loan sales by banks Open market paper Interest rates Security markets Stock market credit Savings institutions A A A A A A A 39 40 42 45 48 49 54 Federally sponsored credit agencies Federal finance U.S. Government securities Security issues Business finance Real estate credit Consumer credit Continued on next page A2 U.S. STATISTICS— Continued A A A A A A A A 58 62 62 64 66 66 68 70 Industrial production Business activity Construction Labor force, employment, and earnings Consumer prices Wholesale prices National product and income Flow of funds INTERNATIONAL STATISTICS: A A A A A A A A A A 72 73 74 75 76 91 92 93 94 95 U.S. balance of payments Foreign trade U.S. gold transactions U.S. reserve assets; position in the IMF International capital transactions of the United States Foreign exchange rates Central bank rates Open market rates; arbitrage on Treasury bills Gold reserves of central banks and governments Gold production TABLES PUBLISHED PERIODICALLY: A 96 A 96 A 98 A 104 A 106 A 120 Insured commercial banks, 1972: Income, expenses, and dividends Member banks, 1972: Income, expenses, and dividends: By class of bank By Federal Reserve district By size of bank Income ratios, by class of bank and Federal Reserve district INDEX TO STATISTICAL TABLES A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e c P r rp I, II, III, n .e .c . A .R . S .A . N .S .A . Estimated Corrected Preliminary Revised Revised preliminary IV Quarters Not elsew here classified Annual rate M onthly (or quarterly) figures adjusted for seasonal variation IPC SM SA A L S U * Monthly (or quarterly) figures not adjusted for seasonal variation Individuals, partnerships, and corporations Standard metropolitan statistical area Assets Liabilities Sources of funds U ses of funds Amounts insignificant in terms of the par ticular unit (e .g ., less than 50 0 ,0 0 0 when the unit is m illions) (1) Zero, (2) no figure to be expected, or (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used in the follow ing in stances: (1) to the right (to the left) of a total when the com ponents shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. “ U .S . Govt, securities” may include guaranteed issues of U .S . Govt, agencies (the flow of funds figures also include not fully guaranteed issues) as well as direct obligations of the Treasury. “ State and local g o v t.” also includes m unicipalities, special districts, and other political subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled N o t e (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other charac teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Semiannually Banking offices: Analysis of changes in number On, and not on, Federal Reserve Par List, number .................... Annually— Continued Page Issue Mar. 1973 A-98 A-99 Mar. 1973 Annually Bank holding companies: List, Dec. 31, 1971 ................... Banking offices and deposits of group banks, Dec. 31, 1971 .. Banking and monetary statistics: 1971 1972 June 1972 A-98 Aug. 1972 A-101 Mar. 1972 July 1972 Mar. 1973 A-98— A-110 A-98— A-101 A -100— A -114 Issue Page Banks and branches, number, by class and State ....................... Apr. 1973 A-96— A-97 Flow of funds: Assets and liabilities: 1960-71 ..................................... June 1972 A -7 3 .10— A-73.21 Flows: 1965-71 data ............................ Nov. 1972 A-72— A -73.9 Income and expenses: Federal Reserve Banks .............. Insured commercial banks ........ Member banks: Calendar year .......................... Income ratios .......................... Operating ratios ...................... Feb. 1973 May 1973 A -98— A-99 A -96— A-97 May 1973 May 1973 July 1972 A -96— A -105 A - 106— A- 111 A - 102— A -107 Stock market credit ......................... Jan. 1973 A -98— A-99 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Anticipated schedule of release dates for individual releases ........................................................................................... December 1972 Page A -109 A 4 BANK RESERVES AND RELATED ITEMS □ MAY 1973 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities 1 Total Bought out right Held under repur chase agree ment Loans Float 2 Other F.R. assets 3 Total 4 Gold stock Special Drawing Rights certificate account Treas ury cur rency out stand ing Averages of daily figures 1939_Dec............................. 1941_D ec............................. 1945—Dec............................. 1950—Dec............................. I960—Dec............................. 2,510 2,219 23,708 20,345 27,248 2,510 2,219 23,708 20,336 27,170 9 78 8 5 381 142 94 83 170 652 1,117 1,665 2,612 2,404 24,744 21,606 29,060 17,518 22,759 20,047 22,879 17,954 1968—Dec............................. 1969—Dec............................. 1970—Dec............................. 1971—Dec............................. 52,529 57,500 61,688 69,158 52,454 57,295 61,310 68,868 75 205 378 290 765 1,086 321 107 3,251 3,235 3,570 3,905 2,204 1,032 982 56,610 64,100 66,708 74,255 10,367 10,367 11,105 10,132 400 400 6,810 6,841 7,145 7,611 1972—Apr............................. May............................ June............................ July............................. Aug............................. Sept............................ Oct.............................. Nov............................ Dec............................. 70,939 71,428 71,632 72,089 71,858 70,252 71,359 71,112 71,094 70,770 71,391 71,624 71,972 71,732 70,135 71,194 70,815 70,790 169 37 8 117 126 117 165 297 304 109 119 94 202 438 514 574 606 1,049 3,031 3,140 3,370 3,548 3,345 3,723 4,112 2,966 3,479 990 934 933 1,111 957 894 1,202 1,170 1,138 75,171 75,705 76,108 77,035 76,676 75,451 77,331 75,959 76,851 9,588 10,224 10,410 10,410 10,410 10,410 10,410 10,410 10,410 400 400 400 400 400 400 400 400 400 7,922 7,991 8,043 8,080 8,137 8,183 8,230 8,278 8,293 1973—Jan.............................. Feb............................. Mar............................. Apr.p .......................... 72,194 72,307 74,019 75,353 71,711 72,082 73,624 74,914 483 225 395 439 1,165 1,593 1,858 1,721 3,267 2,556 2,387 2,328 1,329 1,004 839 1,043 78,063 77,600 79,219 80,551 10,410 10,410 10,410 10,410 400 400 400 400 8,321 8,353 8,406 8,444 7...................... 14...................... 21...................... 28...................... 71,973 72,058 72,569 72,629 71,905 71,884 72,083 72,457 68 174 486 172 1,232 1,991 1,672 1,482 2,596 2,170 2,783 2,683 1,322 1,337 662 694 77,207 77,664 77,931 77,611 10,410 10,410 10,410 10,410 400 400 400 400 8,343 8,347 8,352 8,371 Mar. 7...................... 14...................... 21...................... 28...................... 73,415 73,710 74,083 74,258 73,183 73,339 73,783 73,889 232 371 300 369 1,688 1,491 2,139 2,013 2,595 2,809 2,598 1,787 749 790 876 908 78,565 78,916 79,816 79,064 10,410 10,410 10,410 10,410 400 400 400 400 8,387 8,402 8,408 8,420 Apr. 4 ...................... 11...................... 18^.................... 25p.................... 75,223 74,700 75,420 75,654 74,404 74,586 74,866 74,907 819 114 554 747 1,754 1,502 1,848 1,646 1,860 2,352 2,329 2,863 938 968 1,025 1,139 79,908 79,602 80,728 81,438 10,410 10,410 10,410 10,410 400 400 400 400 8,427 8,437 8,444 8,448 73,947 75,650 76,785 6 73,286 6 74,381 6 75,895 661 1,269 890 1,564 2,048 1,709 2,795 1,845 1,232 735 915 1,128 79,274 80,623 80,990 10,410 10,410 10,410 400 400 400 8,378 8,420 8,462 7 .................... 14...................... 21...................... 28...................... 70,399 72,519 72,116 73,947 6,7 70,399 6 71,884 6,7 71,928 6 73,286 635 188 661 967 2,766 391 1,564 3,265 2,423 2,882 2,795 1,304 1,397 671 735 76,016 79,335 76,239 79,274 10,410 10,410 10,410 10,410 400 400 400 400 8,347 8,347 8,355 8,378 Mar. 7...................... 14...................... 21...................... 28...................... 72,086 74,257 73,103 75,193 6,7 72,086 6 73,559 6,7 73,103 6 74,050 698 1,143 1,132 1,823 2,984 2,028 3,542 3,282 2,742 2,122 794 878 901 949 77,632 80,406 79,805 80,436 10,410 10,410 10,410 10,410 400 400 400 400 8,390 8,407 8,412 8,422 Apr. 74,493 74,350 76,953 75,393 6 74,493 6, 774.350 6 75,033 6,774,714 1,920 679 1,082 1,241 3,159 1,521 3,268 2,943 3,182 2,794 949 1,010 1,088 1,134 79,867 79,619 84,547 80,955 10,410 10,410 10,410 10,410 400 400 400 400 8,436 8,440 8,445 8,453 2,956 3,239 4,322 4,629 5,396 Week ending— 1973—Feb. End of month 1973—Feb............................. Mar............................. Apr.p.......................... Wednesday 1973_Feb. 4 ? . .................. U p .................... 18*>.................... 25^ .................... 4 Includes industrial loans and acceptances until Aug. 21, 1959, when 1 Includes Federal agency issues held under repurchase agreements as industrial loan program was discontinued. For holdings of acceptances of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, 1971. 2 Beginning with 1960 reflects a minor change in concept; see on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. Feb. 1961 Bulletin, p. 164. 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. Notes continued on opposite page. liabilities and capital” are shown separately; formerly, they were netted together and reported as “Other F.R. accounts.*’ MAY 1973 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions o f dollars) Factors absorbing reserve funds Deposits, other than member bank reserves, with F.R. Banks Cur rency in cir cula tion Treas ury cash hold ings 7,609 10,985 28,452 27,806 33,019 2,402 2,189 2,269 1,290 616 592 625 615 522 50,609 53,591 57,013 61,060 756 656 427 453 60,717 61,182 61,874 62,669 62,726 62,913 63,385 64,543 66,060 Treas ury For eign Other F.R. ac counts 3 Other2 Other F.R. lia bilities and capital Member bank reserves With F.R. Banks Cur rency and coin* Period or date Totals Averages of daily figures 248 292 493 739 1,029 11,473 12,812 16,027 17,391 16,688 -1,105 2,192 2,265 2,287 22,484 23,071 23,925 25,653 615 574 598 617 604 619 631 604 631 2,313 2,289 2,304 2,329 2,324 2,240 2,336 2,378 2,362 294 302 338 275 644 645 666 666 3,018 3,233 2,501 3,071 277 290 270 372 385 376 380 388 177 129 731 625 409 413 413 416 3,117 3,438 3,104 3,641 2,595 11,473 12,812 16,027 17,391 19.283 . 1939—Dec. .1941—Dec. .1945—Dec. . 1950—Dec. .1960—Dec. 4,737 4,960 5,340 5,676 27,221 28,031 29,265 31,329 .1968—Dec. .1969—Dec. .1970—Dec. .1971—Dec. 27,144 27,347 27,002 27,361 27,454 27,224 28,088 25,631 24,830 5,421 5,465 5,537 5,660 5,694 5,779 5,715 5,813 6,095 32,565 32,812 32,539 33,021 33,148 33,003 33,803 131,774 31,353 .1972- -Apr. .May June July Aug. Sept. Oct. Nov.8 Dec. 2,365 2,482 2,530 2,622 26,220 25,432 25,848 26,290 6,463 6,031 5,856 5,822 32,962 31,742 31,973 32.284 .1973—Jan. ...........Feb. ........... Mar. ........... Apr.? 639 614 657 671 2,598 2,396 2,430 2,506 25,175 25,238 26,107 25,219 6,380 6,296 5,656 5,788 31,834 31,813 32,042 31,286 343 335 365 304 692 670 650 643 2,609 2,405 2,499 2,559 25,873 25,057 26,158 25,645 5,906 6,219 5,525 5,747 32,058 31,555 31,962 31,671 .Mar. 7 ..........14 .......... 21 ......... 28 318 279 272 258 672 649 687 663 2,662 2,639 2,529 2,624 26,586 25,527 26,643 26,799 5.861 6,060 5,814 5,481 32,619 31,759 32,629 32,452 .Apr. 4 ......... 11 ......... 18* 739 1,531 1,247 920 250 353 495 360 1,194 849 1,926 225 146 145 290 458 458 735 728 405 573 356 342 319 320 362 375 350 1,688 2,170 2,673 2,398 2,025 938 1,369 1,321 1,449 200 185 153 209 171 190 200 195 272 65,274 64,564 65,072 66,068 364 382 384 414 2,033 2,956 3,598 3,471 64,277 64,673 64,743 64,565 378 378 385 389 64,683 65,157 65,250 65,130 65,381 65,906 66,335 66,296 Week ending— .1973—Feb. 7 14 21 28 .......... 25p End of month 64,696 65,180 66,091 379 407 424 2,073 2,881 4,163 455 327 328 633 696 773 2,574 2,648 2,753 27,653 27,713 25,730 5,788 5,865 5,949 33,720 33,750 31,851 64,612 64,923 64,868 64,696 385 388 396 379 3,253 2,809 3,358 2,073 245 332 275 455 651 615 681 633 2,612 2,468 2,461 2.574 23,415 26,958 23,365 27,653 6,380 6,296 5,656 5,788 30,074 33,533 29,300 33,720 .1973—Feb. 7 .....................14 .....................21 .....................28 65,093 65,409 65,318 65,354 381 378 394 396 3,799 4,321 4,424 3,382 296 311 287 359 635 665 633 709 2,615 2,442 2,493 2,596 24,013 26,098 25,479 26,873 5,906 6,219 5,525 5,747 30,198 32,596 31,283 32,899 .Mar. 7 ......... 14 ...........21 ......... 28 65,832 66,348 66,519 66,339 421 414 421 424 3,596 3,533 2,787 3,696 271 267 263 240 636 703 658 682 2,691 2,453 2.574 2,632 25,665 25,152 30,580 26,205 5,861 6,060 5,814 5,481 31,698 31,384 36,566 31,858 . Apr. 4p ..........11p ......... 18p ......... 25 p .1973—Feb. ........... Mar. ............A pr.p Wednesday 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed thereafter. Beginning with Jan. 1963, figures are estimated except for weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date. ®Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. 7 Reflects securities sold, and scheduled to be bought back, under matched sale/purchase transactions. 8 Beginning with week ending Nov. 15, 1972, includes $450 million of reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week of quarter): Ql, $279 million; Q2, $172 million. For other notes see opposite page. BANK RESERVES AND RELATED ITEMS □ MAY 1973 A 6 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions o f dollars) A ll member banks Large banks 2 All other banks Borrowings Reserves Period T otal Sea sonal N ew York City City o f C hicago Excess Excess Total h eld 1 R e quired E xcess1 1939— D e c ............ 1941— D e c ............ 1945— D ec............ 1950—D e c ............ 11,473 12,812 16,027 17,391 6 ,4 6 2 9 ,4 2 2 14.536 16,364 5,011 3 ,3 9 0 1,491 1,027 3 5 334 142 2,611 989 48 125 1960— D ec............ 1965— D e c ............ 1967—D e c 1968— D e c 1969— D e c 1970— D e c 1971— D e c 19.283 2 2 ,7 1 9 2 5 ,2 6 0 27,221 28,031 2 9 ,2 6 5 3 1,329 18,527 2 2 ,2 6 7 2 4 ,915 2 6 ,7 6 6 2 7 ,7 7 4 2 8 ,993 3 1 ,164 756 452 345 455 257 272 165 87 454 238 765 1,086 321 107 29 41 18 1972— A p r M a y .......... J u n e.......... July........... A u g ........... Sept........... O ct............. N o v ........... D e c ............ 3 2 ,565 3 2,8 1 2 32,539 33,021 3 3,148 3 3,003 3 3,803 3 1 ,7 7 4 31,3 5 3 32,429 32,708 3 2,335 3 2 ,874 32,893 32,841 33 ,556 3 1 ,4 6 0 3 1,1 3 4 136 104 204 147 255 162 247 314 219 109 119 94 438 514 574 606 1,049 -2 0 15 116 136 59 64 301 1973— Ja............... n Feb............ M ar........... Apr.p 3 2 ,9 6 2 3 1,7 4 2 31,973 3 2 .2 8 4 3 2 ,6 2 0 3 1 .5 3 7 31,678 32,128 342 205 295 156 1,165 1,593 1,858 1,721 95 -1 3 72 26 193 324 176 146 5 .. 1 2 .. 1 9 .. 2 6 .. 3 2 .6 0 4 32,345 32 ,5 6 5 3 2 ,666 3 2 ,230 32,179 32 .6 2 4 32,448 374 166 -5 9 218 141 14 43 279 58 86 -1 0 8 89 23 124 4 .. 33,731 3 3 ,7 1 0 3 4 ,098 33.555 33,501 33 ,3 5 2 33 ,9 7 7 33,405 230 358 47 12 47 36 150 436 535 434 765 17 -3 9 2 9 .. 3 3 ,7 0 4 3 3 ,6 9 4 3 2 ,1 3 2 3 0 ,539 30,728 33,499 3 3 ,5 7 0 3 1 ,346 3 0 ,3 5 0 30,388 205 124 786 189 340 555 959 494 419 572 38 -3 2 196 -1 8 26 6. 1 3 .. 20. 2 7 .. 31.009 31,068 31,408 31,441 30,673 3 0,824 3 1 ,202 3 1,252 336 244 206 189 589 805 21 3. 10. 17. 24. 3 1. 3 2 .604 3 2 ,506 34.009 32,511 32.556 3 2 ,044 3 2 ,3 8 0 33,668 32,545 32,103 560 126 341 -3 4 453 688 -2 1 1,298 1,097 1,309 7. 14. 21. 28. 31 ,8 3 4 31,813 3 2 ,042 3 1 ,286 31,687 31.625 31,537 3 1 ,300 147 188 505 -1 4 1,232 1,991 1,672 1,482 7. 14. 21. 28. 32,058 31,555 31,9 6 2 31,671 31,717 31,532 31,713 31,578 341 23 249 93 4. 11. 18^ 32,619 31,759 32,629 32,452 32,082 31,845 32,3 9 7 32,064 537 202 100 56 34 25 -2 14 34 32 6 29 61 4 Borrow ings Borrow ings 540 295 14 Other Excess Borrow ings 8 5 1,188 1 303 418 232 111 4 15 8 100 40 230 259 25 35 15 18 7 23 13 85 27 4 20 67 50 90 228 105 270 479 264 48 50 6 192 58 19 8 1 8 5 6 42 -3 5 16 -2 4 7 -4 1 72 1 Excess 671 804 96 50 1,011 623 330 267 250 177 189 174 22 22 663 -4 2 31 40 64 134 195 240 248 429 116 105 164 148 167 136 140 -5 -1 6 0 9 -3 3 -3 3 7 -9 5 578 693 857 829 -2 8 -4 7 48 49 -3 6 9 -1 5 23 35 -8 7 38 8 86 181 157 127 106 185 26 23 -3 1 25 39 77 17 62 125 229 233 272 156 182 171 96 2 -1 5 7 31 -6 261 447 192 136 226 163 176 60 -1 8 2 21 -4 2 -3 4 -8 0 -8 1 118 300 514 654 -1 2 6 -1 7 2 -2 1 5 -1 4 4 279 19 189 19 83 -1 0 7 -2 4 -1 6 5 -1 0 525 420 635 511 806 39 -1 5 23 -4 0 -3 5 -2 3 -7 5 47 - 4 584 664 928 599 -2 4 -3 2 -5 8 -1 5 -7 1 -6 6 695 623 1,077 951 99 -9 0 -7 4 46 865 775 843 796 6 9 -1 8 10 -1 22 -1 4 13 2 -6 5 12 6 11 12 45 19 55 108 105 102 -2 24 -1 Borrow ings -1 W eek ending— 1972— Apr. Oct. 11.. 1 8 .. 2 5 .. N ov. 1 .. 8 .. 1 5 .. 22.. D ec. 1973—Jan. Feb. Mar. A pr. 25v 121 -8 6 232 388 192 1 20 -1 1 86 11 80 26 -3 0 15 23 33 -2 4 34 75 13 1,118 24 17 -3 7 43 206 422 278 1,751 149 713 10 -1 0 46 -8 2 204 260 17 -2 6 15 -7 8 221 1,221 -1 66 201 709 155 1 -7 17 11 -2 1 156 -1 2 8 211 1,491 2,139 2,013 92 -4 8 56 -4 6 242 178 225 28 43 -2 5 3 1,754 1,502 1,848 1,646 169 -1 8 4 145 35 144 24 306 45 18 -1 4 1,688 1 Beginning with week ending N o v . 15, 1972, includes $450 m illion o f reserve deficiencies on which F.R . Banks are allowed to waive penalties for a transition period in connection with bank adaptation to R egulation J as am ended effective N ov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week o f quarter): Q l, $279 m illion; Q2, $172 m illion. . 2 Beginning N ov. 9, 1972, designation o f banks as reserve city banks for reserve-requirement purposes has been based on size o f bank (net demand deposits o f more than $400 m illion), as described in the Bulletin for July 1972, p. 626. Categories show n here as “large” and “all other” 10 1 -1 13 110 16 178 104 121 99 113 104 130 8 13 l 18 1 141 -3 6 68 19 -4 0 91 -8 7 -1 1 2 -3 -100 12 -7 0 -8 6 -7 5 79 30 -1 0 122 parallel the previous “ reserve city” and “country” categories, respectively (hence the series are continuous over tim e). Note.— Averages o f daily figures. M onthly data are averages o f daily figures within the calendar m onth; they are not averages o f the 4 or 5 weeks ending on W ed. that fall within the m onth. Beginning with Jan. 1964 reserves are estim ated except for w eekly averages. Borrowings at F.R. Banks: Based on closing figures. Effective Apr. 19, 1973, the Board’s R egulation A , which governs lend ing by Federal Reserve Banks, was revised to assist smaller member banks to meet the seasonal borrowing needs o f their com m unities. MAY 1973 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions o f dollars, except as noted) Basic reserve position Reporting banks and week ending— Less— Related transactions with U.S. Govt, securities dealers Interbank Federal funds transactions Gross transactions N e t- Net Excess Per cent inter Bor re of serves 1 rowings bank Surplus avg. or at F.R. Federal deficit required Banks funds reserves trans. Pur chases Sales Net transactions Total two-way Pur trans chases actions 2 of net buying banks Bor Loans row Sales to ings of net dealers 3 from selling dealers4 banks Net loans Total—46 banks 1973—Mar. 7 ......... 14......... 21......... 28......... Apr. 4 ......... 11......... 18......... 25......... 104 127 115 2 614 494 900 595 9,485 10,465 10,609 8,738 -9,995 -10,835 -10,794 -9,331 71.7 78.4 77.4 67.9 14,915 16,613 15,782 15,153 5,431 6,147 5,772 6,416 4,082 4,164 4,095 4,202 10,833 12,449 11,687 10,951 1,349 1,983 1,677 2,214 1,978 1,828 1,729 1,495 382 613 330 468 1,596 1,216 1,400 1,027 250 -3 4 87 226 554 448 738 389 9,206 10,839 10,146 9,137 -9,510 -11,320 -10,797 -9,300 67.2 80.6 75.1 66.6 15,528 15,699 15,252 14,695 6,322 4,860 5,106 5,558 4,412 3,829 3,730 4,679 11,116 11,870 11,522 10,016 1,910 1,032 1,376 878 1,509 1,534 1,482 1,663 402 243 371 433 1,107 1,291 1,111 1,230 41 117 40 -2 193 171 208 3,608 4,828 4,551 4,059 -3,760 -4,883 -4,719 -4,062 66.5 86.6 82.5 73.7 4,507 5,494 5,338 5,103 899 666 786 1,044 817 550 653 748 3,690 4,944 4,684 4,355 82 116 133 296 1,226 1,113 924 805 255 236 217 201 971 877 706 605 100 8 in New York City 1973—Mar. 7 ......... 14......... 21......... 28......... Apr. 4 ......... 11......... 18......... 25......... 135 -8 3 83 134 293 21 3,612 4,144 3,911 2,504 -3,577 -4,227 -4,121 -2,392 62.4 74.6 70.8 42.6 4,798 4,773 4,593 4,001 1,186 628 682 1,497 893 599 593 1,391 3,904 4,174 4,000 2,611 292 30 89 106 939 995 1,016 892 224 145 226 268 715 850 790 624 63 10 75 4 422 322 692 595 5,877 5,637 5,458 4,679 -6,235 -5,950 -6,075 -5,269 75.3 72.8 73.9 64.1 10,408 11,119 10,444 10,050 4,532 5,482 4,986 5,372 3,266 3,614 3,442 3,454 7,143 7,504 7,002 6,596 1,266 1,867 1,544 1,918 752 715 806 690 127 377 112 267 625 338 694 423 114 49 4 92 454 448 445 368 5,594 6,694 6,235 6,632 -5,933 -7,093 -6,676 -6,908 70.4 84.7 78.1 82.7 10,730 10,926 10,659 10,694 5,136 4,232 4,424 4,061 3,519 3,230 3,137 3,289 7,211 7,696 7,522 7,405 1,618 1,002 1,287 772 570 539 466 771 178 98 146 165 392 441 321 607 16 3 6 -3 86 102 86 114 2,145 2,214 2,327 -2,426 2,014 -2,093 1,873 -1,990 153.9 168.9 145.9 140.3 2,807 3,004 2,724 2,485 662 677 710 612 660 674 666 613 2,146 2,330 2,058 1,873 1 2 44 373 408 378 380 30 30 30 373 377 348 350 14 -6 8 19 2 -2,321 -2,473 -2,252 -2,122 156.9 169.4 150.7 149.7 2,856 3,093 3,001 2,876 521 626 743 735 512 610 734 722 2,343 2,483 2,267 2,154 9 16 9 13 304 250 243 238 26 14 19 35 278 236 224 203 336 . 3,732 -4,021 220 3,310 -3,523 607 3,444 -3,982 2,806 -3,279 481 58.7 52.3 58.6 48.2 7,602 8,114 7,720 7,565 3,870 4,805 4,276 4,759 2,605 2,940 2,775 2,842 4,996 5,174 4,945 4,723 1,265 1,865 1,500 1,918 379 307 428 310 127 346 82 237 252 -3 9 346 73 -3,612 -4,621 -4,424 -4,786 52.0 66.8 62.7 69.0 7,875 7,833 7,658 7,818 4,615 3,606 3,681 3,327 3,006 2,620 2,403 2,567 4,868 5,213 5,255 5,251 1,609 986 1,278 759 266 290 224 533 153 84 127 130 113 206 97 403 38 outside New York City 1973—Mar. 7 ......... 14......... 21......... 28......... Apr. 4 ......... 11......... 18......... 25......... 5 in City o f Chicago 1973—Mar. 7......... 14......... 21......... 28......... Apr. 4 ......... 11......... 18......... 25......... 2,335 2,467 2,258 2,141 33 others 47 7 69 7 1973—Mar. 7 ......... 14......... 21......... 28......... Apr. 4 ......... 11......... 18......... 25......... 101 55 -4 73 454 448 443 368 3,259 4,228 3,977 4,491 1 Based upon reserve balances, including all adjustments applicable to the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, if any, were deducted. Excess reserves for later periods are net of all carry over reserves. 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank’s weekly average pur chases and sales are offsetting. 3 Federal funds loaned, net funds supplied to each dealer by clearing banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. 4 Federal funds borrowed, net funds acquired from each dealer by clearing banks, reverse repurchase agreements (sales of securities to dealers subject to repurchase), resale agreements, and borrowings secured by Govt, or other issues. Note.—Weekly averages of daily figures. For description of series and back data, see Aug. 1964 Bulletin, pp. 944-74. A 8 F .R . B A N K IN T E R E S T R A T E S a MAY 1973 CURRENT RATES (Per cent per annum) Loans to member banks— Under Secs. 13 and 13a Loans to all others under last par. Sec. 133 Under Sec. 10(b) 2 1 Federal Reserve Bank Rate on Apr. 30, 1973 Boston.............................................. New York........................................ Philadelphia.................................... Cleveland......................................... Richmond........................................ Atlanta............................................ 5% 5V4 5V4 5V4 5V4 5V4 Chicago............................................ St. Louis........................................ . Minneapolis..................................... Kansas City..................................... Dallas............................................ . San Francisco.................................. Previous rate Effective date Rate on Apr. 30, 1973 • Feb. Feb. Apr. Apr. Apr. Apr. 28, 26, 23, 23, 23, 23, 1973 1973 1973 1973 1973 1973 5 5 6 6 51/2 5% 5% 5% 6 V4 61/4 6 V4 6 V4 Apr. Apr. Apr. Apr. Apr. Apr. 27, 27, 23, 23, 27, 23, 1973 1973 1973 1973 1973 1973 5% 5% 5% 6 V4 6 V4 6 V4 5% 5V4 5V4 5V4 53/4 53A 5Vz 5V2 5*4 1 Discounts of eligible paper and advances secured by such paper or by U.S. Govt, obligations or any other obligations eligible for F.R. Bank purchase. Maximum maturity: 90 days except that discounts of certain bankers’ acceptances and of agricultural paper may have maturities not over 6 months and 9 months, respectively. 2 Advances secured to the satisfaction of the F.R. Bank. Maximum maturity: 4 months. 3 Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of, or obligations fully Effective date 6V4 6 V4 6V4 Previous rate Feb. Feb. Apr. Apr. Apr. Apr. 28, 26, 23, 23, 23, 23, 1973 1973 1973 1973 1973 1973 6 6 6 6 Apr. Apr. Apr. Apr. Apr. Apr. 27, 27, 23, 23, 27, 23, 1973 1973 1973 1973 1973 1973 6 6 6 6 6 6 Rate on Apr. 30, 1973 47i/2 51/2 51/2 71/2 m 7% 4 7V4 *1V4 47% 47% «7% 734 Effective date Feb. Feb. Apr. Apr. Apr. Apr. 28, 26, 23, 23, 23, 23, 1973 1973 1973 1973 1973 1973 Apr. Apr. Apr. Apr. Apr. Apr. 27, 27, 23, 23, 27, 23, 1973 1973 1973 1973 1973 1973 Previous rate 7 7 71/2 71/2 71/2 m 71/2 71/2 71/2 71/2 71/2 71/2 guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum maturity: 90 days. 4 Also effective on the same dates as the other rates shown above, a rate of 5 y-i per cent was approved, for the Boston Reserve Bank, and a rate of 5% per cent was approved, for the seven other Reserve Banks so desig nated, on advances to nonmember banks, to be applicable in special circumstances resulting from implementation of changes in Regulation J, which became effective on Nov. 9, 1972. See “Announcements” on p. 942 of the Oct. 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. SUMMARY OF EARLIER CHANGES (Per cent per annum) Effective date Range (or level)All F.R. Banks F.R. Bank of N.Y. In effect Dec. 31, 1954. IVz lV i 1955—Apr. 14.................... 15.................... May 2 .................... Aug. 4.................... 5 .................... 12.................... Sept. 9.................... 13.................... Nov. 18.................... 23.................... 11/2-13^ 11/ 2- 1 34 iy 4 1V4-2V4 I 1/2 134 i 34 134 2 2 21/4 2 Va 21/4 - 21/2 21/2 21/4 21/2 21/2 1956—Apr. 13.................... 20.................... Aug. 24.................... 31.................... 21/2-3 23^-3 23^-3 3 234 234 3 3 1957—Aug. 9.................... 23.................... Nov. 15.................... Dec. 2.................... 3 -31/2 31/2 3 -3V4 3 3 31/2 3 3 1958—Jan. 22.................... 24.................... Mar. 7.................... 13.................... 21.................... Apr. 18.................... May 9.................... Aug. 15.................... Sept. 12.................... 23.................... Oct. 24................... Nov. 7.................... 234-3 23/4-3 214-3 214-234 214 l 3/4-2i/4 3 23/4 214 21/4 21/4 134 134 l 3/4-2i4 2 -2 1 4 2 -2% l 34 l 34 -2 l 34 -2 2 2 - 21/2 2i/2 134 2 2 2 21/2 Effective date Range (or level)— All F.R. Banks F.R. Bank of N.Y. 1959—Mar. 6.................... 16.................... May 29.................... June 12.................... Sept. 11.................... 18.................... 21/2-3 3 3 -31/2 31/2 31/2-4 4 3 3 31/2 31/2 4 4 31/2-4 31/2-4 4 31/2 31/2 3 3 10.................... 14.................... Aug. 12.................... Sept. 9 .................... 3 1963—July 17.................... 26.................... 3 -31/2 31/2 1964—Nov. 24.................... 30.................... 31/2-4 4 1965—Dec. 31/2 31/2 4 4 6.................... 13.................... 4 -41/2 41/2 41/2 41/2 7.................... 14.................... Nov. 20.................... 27.................... 4 -41/2 4 4 - 41/2 41/2 4 4 1968—Mar. 15.................... 22.................... Apr. 19.................... 26.................... Aug. 16.................... 30................... Dec. 18.................... 20.................... 41/2-5 5 5 -51/2 51/2 514-51/2 514 51/4-51/2 51/2 41/2 5 51/2 51/2 51/2 51/4 51/2 51/2 1967—Apr. N ote.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. 3 31/2 - 31/2 41/2 41/2 Effective date Range (or level)— All F.R. Banks F.R. Bank of N.Y. 51/ 2 -6 6 6 1970—Nov. 11.................... 13.................... 16.................... Dec. 1.................... 4.................... 11.................... 534-6 53/4-6 534 51/2-534 51/2-534 51/2 6 534 534 534 5i/i 51/2 1971—Jan. 514-51/2 514 5 -5 1 4 5 -514 5 434-5 434 434-5 5 434-5 43/4 4i/2-43/4 41/2-434 41/2 514 514 514 5 5 5 434 5 5 5 434 434 41/2 41/2 15................... 26................... 2 ................... 23................... 5 5 - 51/2 51/2 51/2-534 5 5% 51/2 51/2 In effect Apr. 30, 1973 . . . . 51/2-534 51/2 1969—Apr. 4.................... 8.................... 8.................... 15.................... 19.................... 22.................... 29.................... Feb. 13................... 19................... 23................... Nov. 11................... 19................... Dec. 13................... 17................... 24................... 1973—Jan. Feb. Mar. Apr. 6 MAY 1973 □ RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (D ep osit intervals are in m illions o f dollars. Requirem ents are in per cent o f deposits.) Tim e 3 (all classes o f banks) N et demand 2 Effective date 1 R eserve city Over 5 0 -5 In effect Jan. 1, 1963 ............ 1966— July 14, 21 . . . Sept. 8, 1 5 . . . 1967— Mar. 2 ........... Mar. 16........... 1968— Jan. 11, 1 8 . . . 1969— Apr. 1 7 ........... 1970— Oct. 1 .............. Other 17 171,1 12 121/2 Other tim e 0 -2 Sav ings 0 -5 4 4 31/2 3 31/2 3 2 -1 0 10-100 100-400 Over 5 4 5 6 121/2 13 Over 400 5 Sav ings 0 -5 Over 5 1972— N o v . 9 . ,. . N o v . 16 8 10 12 6 I 6 I/2 13 171/2 73 73 75 In effect Apr. 30, 1973. . . 8 10 12 13 17i/2 3 3 5 Present legal requirem ent: M inim um M axim um 10 7 3 22 14 10 5 N et demand deposits, reserve city b ank s................ N et dem and deposits, other b a n k s.......................... T im e d ep o sits.................................................................. 1 W hen tw o dates are show n, the first applies to the change at reserve city banks and the second to the change at country banks. For changes prior to 1963 see Board’s Annual Reports. 2 (a) D em and deposits subject to reserve requirements are gross de mand deposits minus cash item s in process o f collection and demand balances due from dom estic banks. (b) Requirement schedules are graduated, and each deposit interval applies to that part o f the deposits o f each bank. (c) Since Oct. 16,1969, member banks have been required under R egu lation M to maintain reserves against balances above a specified base due from d om estic offices to their foreign branches. Effective Jan. 7, 1971, the applicable reserve percentage was increased from the original 10 per cent to 20 per cent. R egulation D im poses a similar reserve requirement on bor rowings above a specified base from foreign banks by dom estic offices o f a m em ber bank. For details concerning these requirements, see Regula tions D and M and appropriate supplements and am endm ents thereto. 3 Effective Jan. 5, 1967, tim e deposits such as Christmas and vacation club accounts becam e subject to sam e requirements as savings deposits. F or other notes see 2(b) and 2(c) above. 4 Effective N ov. 9, 1972, a new criterion was adopted to designate re serve cities, and on the sam e date requirements for reserves against net dem and deposits o f member banks were restructured to provide that each Tim e 3 Effective date Other tim e 12 16^/2 16y2 17 Over 5 0 -5 N et dem and 2, 4 mem ber bank will maintain reserves related to the size o f its net dem and deposits. The new reserve city designations are as fo llo w s: A bank having net demand deposits o f m ore than $400 m illion is considered to have the character o f business o f a reserve city bank, and the presence o f the head office o f such a bank constitutes designation o f that place as a reserve city. Cities in which there are F.R . Banks or branches are also reserve cities. A ny banks having net demand deposits o f $400 m illion or less are considered to have the character o f business o f banks outside o f reserve cities and are permitted to maintain reserves at ratios set for banks not in reserve cities. For details, see announcem ents o n R egulation D in 1972 Bulletins: July, pp. 649, 679; Oct., p. 942; N o v ., p. 994. 5 Reserve city banks. 6 The 16 per cent requirement applied for one week, only to former reserve city banks. For other banks, the 13 per cent requirement was continued in this deposit interval. 7 See preceding colum ns for earliest effective date o f this rate. Note.— A ll required reserves were held on deposit w ith F .R . Banks June 21, 1917, until D ec. 1959. From D ec. 1959 to N o v . 1960, m em ber banks were allowed to count part o f their currency and coin as reserves; effective N o v . 24, 1960, they were allowed to count all as reserves. For further details, see Board’s Annual Reports. A 10 M A XIM U M INTEREST RATES; MARGIN REQUIREMENTS □ MAY 1973 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Type of deposit Jan. 1, 1962 July 17, 1963 4 3% 4 3% Savings deposits: 1 12 months or m ore.. Less than 12 months. Other time deposits: 2 12 months or m ore.. .. 6 months to 12 months, 90 days to 6 months.. . Less than 90 days........ (30-89 days) 4 31/2 2* Nov. 24, 1964 Effective date Type of deposit Dec. 6, 1965 July 20, 1966 Savings deposits.............. . Other time deposits:2 Multiple maturity:3 30-89 days.................. 90 days-1 year.... 1 year to 2 years... 2 years and over... Single-maturity: Less than $100,000: 30 days to 1 year..., 1 year to 2 years. . . . 2 years and over. . . . $100,000 and over: 30-59 days............. 60-89 days............. 90-179 days........... 180 days to 1 year.., 1 year or more. . . . . 4Vi 4 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max imum rates on postal savings accounts coincided with those on savings deposits. 2 For exceptions with respect to certain foreign time deposits, see Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, p. 167. 3 Multiple-maturity time deposits include deposits that are automati cally renewable at maturity without action by the depositor and deposits that are payable after written notice of withdrawal. 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6*4 per cent on maturities of 30-59 days and 6Vi per cent on maturities of Sept. 26, 1966 Apr. 19, 1968 4Vi 4 S* 5 5Vi 5% 5 5Vi 5Vi 5% 5V4 5Vi 534 6 5% W /4 Beginning date 1945—Feb. July 1946—Jan. 1947—Jan. 1949—Mar. 1951—Jan. 1953—Feb. 1955—Jan. Apr. 1958—Jan. Aug. Oct. 1960—July 1962—July 1963—Nov. 1968—Mar. 4, 4 20. 31 . 29, 16, 19. 3 22 15, 4. 15. 27 9. 5, 10 1968—Mar. 11 June 1970—May June 8 1971—Dec. 1970—May 6 1971—Dec. 6 1972—Nov. Effective Nov. 24, 1972. 7 5 3. 22 1937—Nov. 1945—Feb. July 1946—Jan. 1947—Feb. 1949—Mar. 1951—Jan. 1953—Feb. 1955—Jan. Apr. 1958—Jan. Aug. Oct. 1960—July 1962—July 1963—Nov. 1 5 5 21 1 30 17 20 4 23 16 5 16 28 10 6 On margin stocks On convertible bonds 40 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 On short sales (T) 50 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 70 80 65 55 65 50 60 50 50 50 70 80 65 55 65 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. 7Vi N ote.—Maximum rates that may be paid by member banks are estab lished by the Board of Governors under provisions of Regulation Q; however, a member bank may not pay a rate in excess of the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Feb. 1, 1936, maximum rates that may be paid by nonmember insured commercial banks, as established by the FDIC, have been the same as those in effect for member banks. For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) Ending date (4) 67 60-89 days. Effective June 24, 1970, maximum interest rates on these maturities were suspended until further notice. MARGIN REQUIREMENTS (Per cent of market value) Period Jan. 21, 1970 MAY 1973 □ OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Treasury bills Total Others within 1 year Month Gross pur chases Gross sales 1972—Mar.. Apr.. May. June. July.. Aug.. Sept.. Oct.. Nov.. Dec.. 2,009 2,666 475 1,294 2,753 1,390 9,369 2,795 2,638 5,083 298 1,478 291 335 3,286 1,752 8,673 2,425 2,880 4,640 1973-Jan... Feb.. Mar.. 3,060 6,275 3,510 1,735 5,216 2,201 Gross pur chases Gross sales *432* 850 150 351 135 1,829 2,254 475 1,094 2,753 1,274 9,369 2,678 2,638 5,083 298 1,478 291 335 3,286 1,752 8,673 2,425 2,880 4,640 200 200 3,060 6,079 3,510 1,735 5,216 2,201 Redemp tions 155 135 ” 96* Outright transactions in U.S. Govt, securities—Continued 5-10 years Month Gross pur chases 1972—Mar.. Apr.. May. June. July . Aug.. Sept.. Oct.. Nov.. Dec.. 1973—Jan.. Feb.. Mar. Gross sales Over 10 years Exch. or ma turity shifts 31 126 Gross pur chases Gross sales 109 *15* -2,068 432 850 150 300 42 200 200 25 Repurchase agreements (U.S. Govt, securities) 2,022 3,298 250 i ,326* 1,736 2,459 1,844 3,594 3,547 4,765 2,229 380 1,299 -251 -533 -8 2 -866 220 -593 405 9,719 2,774 6,024 8,928 3,034 5,478 2,116 599 1,656 i Net change in U.S. Govt, securities, Federal agency obligations, and bankers’ acceptances. 35 3,476 Bankers' acceptances Out Repur right, chase net agree ments 83 169 -411 61 Federal agency obligations (net) Out right 673 *79* -1,408 **1*27* -2 6 -3 -3 5 -2 2 157 134 74 -7 4 13 19 1 -4 -6 -1 0 4 -4 7 -6 7 -1 8 -1 4 48 -28 61 11 -3 -1 16 -1 6 25 -2 5 Exch. or maturity shifts -2,626 69 360 -135 Net change in U.S. Govt, secur ities Gross sales 92 255 -1,089 2,695 2,625 1,115 211 1,736 3,171 1,132 3,594 3,547 4,863 32 Gross pur chases -2 2,626 -9 0 Gross sales *32* 79 11 7 Gross pur chases 20 166 155 133 Exch., maturity shifts, or redemp tions Gross sales Exch. or ma turity shifts 47 23. ‘ *23* Gross pur chases Redemp tions 1-5 years Under repur chase agree ments, net Net change1 61 -61 65 -65 36 2,408 472 1,386 -221 -570 22 -1,009 206 -442 596 23 95 -66 2,197 644 1,636 ‘30* -30 Note.—Sales, redemptions, and negative figures reduce System hold ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total Pounds sterling 1969—Dec. 1970—Dec. 1971—Dec. 1,967 257 18 1,575 154 3 1972—Jan.. Feb. Mar. Apr. May June July. Aug. Sept. Oct.. Nov Dec. 17 17 17 17 57 18 7 34 122 211 200 192 3 3 3 3 3 2 1 1973—Jan.. 92 Austrian schillings Belgian francs Canadian Danish dollars kroner French francs 199 German marks 60 98 2 Italian lire Japanese yen Nether lands guilders Swiss francs 125 2 2 2 2 2 9 1 24 85 164 164 164 16 20 20 67 20 8 8 8 8 50 5 7 3 35 21 7 6 A 12 FEDERAL RESERVE BANKS □ MAY 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday Item End of month 1973 Apr. 25 Apr. 18 Apr. 11 1973 Apr. 4 Mar. 28 Apr. 30 1972 Mar. 31 Apr. 30 Assets 10,303 400 Gold certificate account............................... Special Drawing Rights certificate account. Cash..................................................... Loans: Member bank borrowings............. Other.............................................. Acceptances: Bought outright............................. Held under repurchase agreements. Federal agency obligations: Bought outright.............................. Held under repurchase agreements. U.S. Govt, securities: Bought outright: Bills.......................... Certificates—Special. Other.. Notes........................ Bonds....................... 10,303 400 10,303 400 10,303 400 10,303 400 10,303 400 9,475 400 320 331 339 343 352 323 358 334 1,521 3,159 1,241 1,082 2,028 1,709 2,048 60 82 31 79 86 75 75 75 69 84 52 77 88 83 1,272 95 1,272 251 1,272 1,280 1,280 59 1,261 29 1,280 94 979 32,895 33,421 32,738 32,873 32,430 34,087 32,761 30,319 36,976 3,571 36,839 3,501 36,839 3,501 36,839 3,501 36,839 3,501 36,976 3,571 36,839 3,501 36,448 3,540 173,761 1,273,078 1,669 173,213 172,770 1,084 174,634 861 173,101 1,175 170,307 i , 273,442 584 Total bought outright.................... Held under repurchase agreements. 10,303 400 Total U.S. Govt, securities. 74,026 75,430 73,078 73,213 73,854 75,495 74,276 70,307 Total loans and securities.................. Cash items in process of collection. . . Bank premises................................... Other assets: Denominated in foreign currencies. All other........................................ 77,027 *9,089 199 80,277 *10,139 200 75,666 8,591 199 75,650 9,257 199 77,365 7,704 197 78,630 *6,370 199 77,863 6,637 197 71,429 10,530 163 4 931 4 884 4 807 4 746 4 748 4 925 4 714 17 906 *98,273 *102,538 96,309 96,902 97,073 *97,154 96,476 93,254 Total assets. Liabilities F.R. notes........................................ Deposits: Member bank reserves................. U.S. Treasurer—General account. Foreign......................................... Other: All other................................... 58,523 58,719 58,553 58,054 57,572 58,269 57,419 53,208 *26,205 3,696 240 *30,580 2,787 263 25,152 3,533 267 25,665 3,596 271 26,873 3,382 359 *25,730 4,163 328 27,713 2,881 327 27,415 1,871 228 682 658 703 636 709 773 696 631 Total deposits. *30,823 *34,288 29,655 30,168 31,323 *30,994 31,617 30,145 6,295 729 6,957 752 5,648 716 5,989 709 5,582 685 5,138 793 4,792 709 7,555 552 *96,370 *100,716 94,572 94,920 95,162 *95,194 94,537 91,460 Capital paid in.......................................................... Surplus...................................................................... Other capital accounts.............................................. 813 793 297 813 793 216 809 793 135 808 793 381 807 793 311 814 793 353 807 793 339 763 742 289 Total liabilities and capital accounts........................ *98,273 *102,538 96,309 96,902 97,073 *97,154 96,476 93,254 344 282 265 Deferred availability cash items........... Other liabilities and accrued dividends. Total liabilities.................................... Capital accounts Contingent liability on acceptances purchased for foreign correspondents.......................................... Marketable U.S. Govt, securities held in custody for foreign and international accounts.......................... 351 345 311 285 282 30,850 31,385 31,605 31,461 32,120 30,184 31,529 28,792 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)... Collateral held against notes outstanding: Gold certificate account.......................... U.S. Govt, securities............................. . 62,188 62,142 61,859 61,609 61,591 62,330 61,615 57,,351 2,300 61,665 2,300 61,635 2,200 61,585 2,291 61,380 2,191 61,380 2,300 61,665 2,291 61,331 1,,945 56;,900 Total collateral. 63,965 63,935 63,785 63,671 63,571 63,965 63,622 58,,845 i See note 6 on p. A-5. 2See note 7 on p. A-5. MAY 1973 a FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON APRIL 30, 1973 (In millions of dollars) Item Total Boston New York Phila Cleve del land phia Rich mond Atlan ta Chi cago St. Louis Minne Kan sas apolis City Dallas San Fran cisco Assets 10,303 448 2,731 538 800 1,026 577 1,736 348 191 456 308 1,144 400 1,145 323 23 130 17 93 204 23 23 47 6 33 63 39 36 94 35 22 248 41 70 63 39 15 26 23 7 19 5 15 30 43 14 51 12 49 170 40 1,706 3 Acceptances: 84 Bought outright............................. 52 Held under repurchase agreements.. Federal agency obligations: 1,261 Bought outright.............................. 29 Held under repurchase agreements.. U.S. Govt, securities: Bought outright.............................. 174,634 861 Held under repurchase agreements.. 72 333 102 78 281 181 3 170 66 17 83 152 171 324 29 69 93 89 69 203 49 28 51 57 170 3,499 19,194 861 4,085 5,516 5,228 4,101 12,017 2,889 1,643 3,034 3,382 10,046 78,630 3,630 20,877 4,354 12,390 3,004 1,688 3,168 3,591 10,387 335 14 258 32 615 17 Special Drawing Rights certificate account........................................... Loans: Secured by U.S. Govt, and agency obligations.................................. Cash items in process of collection. .. Other assets: Denominated in foreign currencies.. All other......................................... 84 52 59 4,256 5,687 5,598 8,111 199 285 32 1,260 7 575 5 460 27 752 14 844 15 990 16 4 925 44 22 233 51 71 67 49 1 141 34 23 37 4,609 25,430 5,501 7,180 7,622 6,150 15,446 3,799 2,223 4,381 4,485 13,214 3,064 14,788 3,680 4,686 5,284 3,041 9,916 2,337 1,082 2,346 2,265 6,925 7,489 686 3117 1,005 238 14 1,525 170 26 1,196 378 15 1,803 359 20 3,611 398 45 694 322 10 587 231 6 1,050 250 12 1,315 377 15 4,788 362 36 87 2 2 2 4 19 1,711 5,205 371 34 716 115 Total assets....... ............................... 100,040 447 12 50 1,290 8 1 125 Liabilities F.R. notes.......................................... 59,414 Deposits: Member bank reserves................... 25,730 U.S. Treasurer—General account.. 4,163 328 Foreign......................................... . Other: 777 All other.................. .................. 667 392 12 1 617 16 15 12 Total deposits.................................... 30,998 1,072 8,909 1,273 1,721 1,604 2,194 4,141 1,028 826 1,314 Deferred availability cash items......... Other liabilities and accrued dividends 6,875 793 355 37 1,011 213 412 40 545 57 568 54 740 42 957 122 339 28 250 21 611 30 4,528 24,921 5,405 7,009 7,510 6,017 15,136 3,732 2,179 4,301 208 207 94 39 39 18 73 72 26 44 42 26 128 124 58 28 27 12 19 18 7 34 33 13 4,609 25,430 5,501 7,180 7,622 6,150 15,446 3,799 2,223 4,381 17 32 18 55 12 8 15 19 44 Total liabilities......... ........................ 98,080 4,381 12,961 Capital accounts Capital paid in ................................... Surplus............................................... Other capital accounts........................ 814 793 353 Total liabilities and capital accounts.. 100,040 Contingent liability on acceptances purchased for foreign correspond- 344 33 34 14 15 485 59 55 19 24 45 43 16 104 99 50 4,485 13,214 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank).......................................... Collateral held against notes out standing: Gold certificate account................. U.S. Govt, securities...................... 62,330 3,252 15,625 3,781 4,896 5,483 3,318 10,164 2,473 1,107 2,461 2,427 7,343 2,300 61,665 280 3,010 15,850 400 3,500 350 4,700 410 5,115 3,500 700 9,900 155 2,380 1,130 2,500 5 2,480 7,600 Total collateral................................... 63,965 3,290 15,850 3,900 5,050 5,525 3,500 10,600 2,535 1,130 2,500 2,485 7,600 1 See note 6 to table at bottom of p. A-5. 2 After deducting $2 million participations of other Federal Reserve Banks. 3 After deducting $211 million participations of other Federal Reserve Banks. 4 After deducting $259 million participations of other Federal Reserve Banks. Note.—Some figures for cash items in process of collection and for member bank reserves are preliminary. A 14 FEDERAL RESERVE BANKS; BANK DEBITS □ MAY 1973 MATURITY DISTRIBUTION OF LOANS AND U .S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions o f dollars) Wednesday End o f month 1973 Item April 25 1973 April 18 April 11 April 4 Mar. 28 1,521 1,516 5 3,159 3,140 19 1,243 1,203 40 1,082 1,071 2,011 Acceptances—Total............................................................. Within 15 days.................................................................. 16 days to 90 days........................................................... 113 45 100 165 65 75 18 57 U.S. Government securities—Total................................. Within 15 days1............................................................... 74,026 5,284 21,506 13,361 28,148 4,138 1,589 75,430 7,078 21,359 13,275 28,021 4,119 1,578 1,367 1,523 267 36 214 568 247 191 16 days to 90 days........................................................... 91 days to 1 year.............................................................. Over 10 years.................................................................... Federal agency obligations—T otal.................................. Within 15 days*............................................................... 16 days to 90 days........................................................... 91 days to 1 year.............................................................. Over 1 year to 5 years..................................................... Over 5 years to 10 years................................................. Over 10 years............................ ....................................... 68 111 42 231 545 247 191 2,028 1972 April 30 Mar. 31 April 30 1,709 1,688 21 2,049 2,018 31 58 58 17 75 17 58 144 84 60 136 65 71 102 165 63 83 23 60 73,078 4,335 21,773 13,252 28,021 4,119 1,578 73,213 4,626 21,685 13,184 28,021 4,119 1,578 73,854 6,199 20,890 13,047 28,021 4,119 1,578 75,495 9,186 18,170 14,264 28,148 4,138 1,589 74,276 5,013 22,524 13,021 28,021 4,119 1,578 70,307 3,471 18,362 14,775 26,665 5,804 1,230 1,272 1,280 1,339 979 52 214 568 247 191 51 214 568 247 191 1,290 34 42 231 545 247 191 1,374 52 214 568 247 191 52 214 568 247 191 74 217 450 134 104 11 8 68 102 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity o f the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts I (billions o f dollars) Turnover o f demand deposits Period N.Y. 6 others2 Total 232 SMSA’s (excl. N.Y.) 1972—M ar.r............................. 12,785.2 A pr.r .............................. 13,167.5 May r .............................. 13,399.3 Juner .............................. 13,280.6 July r ............................... 12,994.0 A ug.r.............................. 13,969.4 Sept................................. r14,022.7 Oct................................... 13,896.7 N ov................................. 15,154.7 D ec.................................. 14,783.6 5,631.4 5,801.4 5,939.2 5,780.8 5,6 3 3 .0 6,151.8 6,285.1 6,148.6 6,979.3 6,604.8 2,932.9 3,053.1 3,148.8 3 ,096.4 2,996.3 3 ,2 3 3 .0 3 ,1 9 1 .0 3,225.8 3,411.9 3,495.4 7,153.8 7,366.1 7,460.0 7,499.7 7,361.0 7,817.6 7,737.6 7,748.1 8,175.4 8,178.7 4,220.9 4,31 3 .0 4,31 1 .2 4,40 3 .4 4,364.7 4,584.6 r4 ,5 4 6 .5 4,522.3 4,763.5 4,683.4 83.2 85.7 85.6 84.8 82.4 87.6 88.7 86.7 93.5 90.7 15,504.4 16,023.5 15,933.7 6 ,8 5 5 .4 7 ,2 2 7 .0 6,844.8 3,671.0 3,775.7 3,856.3 8,649.0 8,796.5 9,088.9 4 ,978.0 5,020.8 5,232.6 94.2 97.6 97.0 Total 233 SMSA’s 1973—Jan.r............................... Feb . T.............................. Mar................................. Leading SMSA’s 1 Excludes interbank and U.S. Govt, demand deposit accounts. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach. 226 other SMSA’s Total 233 SMSA’s Leading SMSA’s Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s 47.1 47.9 46.9 47.6 4 6.9 48.8 48.8 47.8 50.0 48.9 51.4 51.8 53.8 N.Y. 6 others2 202.1 200.8 195.2 83.3 87.3 89.8 199.9 194.4 206.9 214.9 208.3 229.2 215.7 84.2 90.2 89.8 89.2 93.9 r95.6 57.3 59.0 58.8 58.7 57.2 60.2 60.1 59.2 62.1 61.8 224.0 238.0 228.3 98.8 102.3 104.1 64.5 65.8 67.7 88.1 Note.—Total SMSA’s includes some cities and counties not designated as SMSA’s. For back data see pp. 634-35 o f July 1972 Bulletin. MAY 1973 □ U .S . C U R R E N C Y A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total in cir cula tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 1939. 1941 1945. 1947. 7,598 11,160 28,515 28,868 5,553 8,120 20,683 20,020 590 751 1,274 1,404 559 695 1,039 1,048 36 44 73 65 1,019 1,355 2,313 2,110 1,772 2,731 6,782 6,275 1,576 2,545 9,201 9,119 2,048 3,044 7,834 8,850 460 724 2,327 2,548 919 1,433 4,220 5,070 191 261 454 428 425 556 801 782 20 24 7 5 32 46 24 17 1950. 1955. 1959. 27,741 31,158 32,591 19,305 22,021 23,264 1,554 1,927 2,304 1,113 1,312 1,511 64 75 85 2,049 2,151 2,216 5,998 8,529 6,617 9,940 6,672 10,476 8,438 9,136 9,326 2,422 2,736 2,803 5,043 5,641 5,913 368 307 261 588 438 341 4 3 3 12 12 5 I960, 1961. 1962. 1963. 1964. 32,869 33,918 35,338 37,692 39,619 23,521 24,388 25,356 26,807 28,100 2,427 2,582 2,782 3,030 3,405 1,533 1,588 1,636 1,722 1,806 88 92 97 103 111 2,246 2,313 2,375 2,469 2,517 6,691 6,878 7,071 7,373 7,543 10,536 9,348 10,935 9,531 11,395 9,983 12,109 10,885 12,717 11,519 2,815 2,869 2,990 3,221 3,381 5,954 6,106 6,448 7,110 7,590 249 242 240 249 248 316 300 293 298 293 3 3 3 3 2 10 10 10 4 4 1965 , 1966. 1967. 1968. 1969. 42,056 44,663 47,226 50,961 53,950 29,842 31,695 33,468 36,163 37,917 4,027 4,480 4,918 5,691 6,021 1,908 2,051 2,035 2,049 2,213 127 137 136 136 136 2,618 2,756 2,850 2,993 3,092 7,794 8,070 8,366 8,786 8,989 13,369 14,201 15,162 16,508 17,466 12,214 12,969 13,758 14,798 16,033 3,540 8,135 3,700 8,735 3,915 9,311 4,186 10,068 4,499 11,016 245 241 240 244 234 288 286 285 292 276 3 3 3 3 3 4 4 4 4 5 1970. 1971. 57,093 61,068 39,639 41,831 6,281 6,775 2,310 2,408 136 135 3,161 3,273 9,170 18,581 17,454 9,348 19,893 19,237 4,896 12,084 5,377 13,414 215 203 252 237 3 2 4 4 1972--Mar.......... Apr........... May.......... June......... July........... Aug........... Sept.......... Oct............ Nov.......... Dec........... 60,388 60,535 61,702 62,201 62,435 62,744 62,599 63,586 65,137 66,516 41,182 41,140 42,056 42,399 42,449 42,520 42,341 43,085 44,208 45,105 6,860 6,902 6,969 7,016 7,052 7,095 7,116 7,172 7,237 7,287 2,279 2,276 2,334 2,328 2,326 2,333 2,329 2,378 2,437 2,523 135 135 135 135 135 135 135 135 135 135 3,106 3,094 3,170 3,178 3,155 3,152 3,139 3,209 3,305 3,449 9,110 9,028 9,243 9,295 9,231 9,211 9,146 9,334 9,602 9,827 5,275 5,351 5,425 5,446 5,502 5,565 5,492 5,570 5,714 5,868 13,490 13,606 13,785 13,923 14,052 14,228 14,336 14,503 14,789 15,118 200 199 198 197 196 196 195 194 194 193 233 232 232 230 229 229 228 226 225 225 2 2 2 2 2 2 2 2 2 2 4 4 4 4 4 4 4 4 4 4 1973—-Jan............ 64,312 Feb........... 64,696 Mar.......... 65,180 43,133 43,431 43,699 7,274 7,290 7,320 2,380 2,370 2,368 135 135 135 3,218 3,213 3,209 9,243 20,883 21,179 9,330 21,091 21,266 9,352 21,314 21,482 5,742 15,013 5,755 15,089 5,787 15,274 192 192 191 224 224 223 2 2 2 4 4 4 End of period Coin and small denomination currency Large denomination currency 19,692 19,705 20,204 20,446 20,550 20,594 20,477 20,857 21,491 21,883 19,205 19,395 19,647 19,803 19,986 20,224 20,258 20,500 20,928 21,411 $1,000 $5,000 $10,000 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin, overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational breakNote.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Kind of currency Total, out standing, As security Mar. 31, Treasury against 1973 gold and cash silver certificates Gold............................................................................. Gold certificates.......................................................... Federal Reserve notes................................................. Treasury currency—Total............................................ 10,410 (10,303) 61,616 8,420 Standard silver dollars............................................. Fractional coin........................................................ United States notes.................................................. In process of retirement 3........................................ 766 7,041 323 290 Total—Mar. 31, 1973.................................................. 4 80,446 Feb. 28, 1973................................................... 4 80,264 Mar. 31, 1972.................................................. 474,511 (10,303) 168 132 2 10,302 41 88 3 (10.303) (10.303) (9,475) 1 Outside Treasury and F.R. Banks. Includes any paper currency held outside the United States and currency and coin held by banks. Esti mated totals for Wed. dates shown in table on p. A-5. 2 Consists of credits payable in gold certificates, the Gold Certificate Fund—Board of Governors, FRS. 3 Redeemable from the general fund of the Treasury. 107 For F.R. Banks and Agents 407 379 402 10.302 10.302 9,474 Currency in circulation 1 Held by F.R. Banks and Agents 1973 1972 Mar. 31 Feb. 28 Mar. 31 57,251 7,930 56,796 7,901 52,914 7,474 40 318 685 6,635 320 290 681 6,610 320 290 611 6,249 320 293 4,557 4,887 4,248 65,180 1 4,197 358 64,696 60,388 4 Does not include all items shown, as gold certificates are secured by gold. Duplications are shown in parentheses. Note.—Prepared from Statement of United States Currency and Coin and other data furnished by the Treasury. For explanation of currency reserves and security features, see the Circulation Statement or the Aug. 1961 Bulletin, p. 936. A 16 MONEY STOCK □ MAY 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Month or week Mi Not seasonally adjusted Mi M2 Mi Mi M2 Composition of measures is described in the Note below. 1969—De c 1970—De c 1971—De c 208.8 221.3 236.0 392.3 425.2 473.8 594.0 641.3 727.7 214.9 227.7 242.8 397.0 430.0 478.7 598.4 645.6 731.9 1972—Ma r Apr........ May....... June....... July....... Aug........ Sept....... Oct......... Nov....... Dec........ 241.4 243.0 243.8 245.1 247.7 248.6 250.1 251.6 252.7 255.5 488.9 492.1 495.5 499.3 504.5 508.4 512.1 516.4 519.8 525.1 754.8 761.5 767.9 '775.0 784.0 791.6 r799.0 807.0 '813.6 822.0 239.0 244.3 239.5 243.2 246.6 245.5 248.7 251.2 254.3 262.9 487.7 495.0 493.1 498.8 503.6 505.1 510.4 515.2 518.7 530.3 754.0 765.3 766.0 775.6 784.3 788.3 796.9 805.2 811.2 '826.5 1973—Ja n Feb........ Mar....... Apr.*.... 255.4 256.7 '256.6 258.3 527.9 530.5 r532.6 536.3 '828.7 '834.9 '839.7 845.5 262.6 254.0 '254.1 259.6 534.1 527.8 '531.4 539.6 '834.6 '831.6 '838.8 849.7 Week ending— 1973—Apr. 4. 11. 18. 25* 257.5 257.5 258.9 257.0 534.1 534.1 537.9 535.6 257.0 260.4 262.4 258.0 536.0 539.2 543.2 538.2 May 2* 259.5 538.5 257.5 538.4 Note.—Composition of the money stock measures is as follows : Mi: Averages of daily figures for (1) demand deposits of commercial banks other than domestic interbank and U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of commercial banks. M u Averages of daily figures for Mi plus savings deposits, time de posits open account, and time certificates other than negotiable CD’s of $100,000 of large weekly reporting banks. M 3: M 2 plus the average of the beginning- and end-of-month figures for deposits of mutual savings banks and for savings capital of savings and loan associations. For description and back data, see “Revision of the Money Stock Meas ures and Member Bank Reserves and Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. COM PONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Not seasonally adjusted Seasonally adjusted Commercial banks Month or week Cur rency De mand depos its Time and savings deposits CD’s 1 Other Total Non bank thrift institu tions 2 Commercial banks Cur rency De mand depos its Time and savings deposits Other Non bank thrift institu tions 2 U.S. Govt, depos its 3 Total . 46.1 49.1 52.6 162.7 172.2 183.4 10.9 25.3 33.0 183.5 203.9 237.9 194.4 229.2 270.9 201.7 216.1 253.8 46.9 50.0 53.5 167.9 177.8 189.2 11.1 25.8 33.8 182.1 202.3 236.0 193.2 228.1 269.8 201.4 215.6 253.2 5.6 7.3 6.9 1972—Ma r . Apr........ May....... June....... July....... Aug....... Sept....... Oct........ Nov....... Dec........ 53.6 53.9 54.2 54.4 54.6 54.8 55.3 55.7 56.2 56.8 187.7 189.1 189.6 190.7 193.1 193.8 194.8 195.9 196.5 198.7 33.8 35.2 36.8 37.5 38.3 39.1 39.8 40.0 41.2 43.2 247.5 249.1 251.8 254.2 256.8 259.8 262.0 264.8 267.1 269.6 281.3 284.3 288.6 291.7 295.0 298.9 301.9 304.8 308.4 312.8 265.9 269.4 272.4 275.7 279.6 '283.2 286.9 290.6 '293.8 296.9 53.1 53.5 53.9 54.4 55.1 55.1 55.2 55.7 56.7 57.8 185.9 190.8 185.6 188.8 191.5 190.5 193.5 195.5 197.7 205.0 33.3 33.8 35.1 35.8 37.0 39.9 41.0 41.9 43.3 44.3 248.7 250.7 253.6 255.6 257.0 259.6 261.7 264.0 264.4 267.5 282.0 284.5 288.6 291.4 294.0 299.5 302.7 305.9 307.7 311.7 266.3 270.3 272.9 276.8 '280.6 283.2 286.5 290.0 292.5 296.1 7.9 7.7 10.5 6.9 7.3 5.3 5.9 6.6 6.2 7.3 1973—Ja n Feb........ Mar....... Apr.*.... 57.0 57.5 57.9 58.6 198.4 199.3 '198.7 199.7 44.4 48.8 54.9 58.7 272.5 273.8 276.0 278.0 316.9 322.6 330.9 336.7 300.8 '304.4 '307.0 309.2 56.7 56.7 57.3 58.2 205.9 197.3 '196.7 201.5 45.1 48.6 54.0 56.1 271.5 273.8 277.3 280.0 316.6 322.5 331.4 336.1 '300.5 '303.8 '307.4 310.1 8.0 9.6 10.1 8.2 1969—De c 1970—De c 1971—De c Week ending— 1973—Apr. 4. 11. 18. 25* 58.2 58.7 58.7 58.8 199.3 198.9 200.2 198.1 57.7 59.0 58.1 58.8 276.6 276.6 279.0 278.7 334.3 335.6 337.1 337.5 57.6 58.6 58.4 58.1 199.4 201.8 204.0 199.9 55.7 56.6 55.6 56.2 279.0 278.8 280.8 280.3 334.6 335.4 336.4 336.5 10.1 6.1 6.0 9.2 May 2* 58.6 200.9 59.3 279.0 338.3 57.8 199.7 56.5 280.9 337.4 11.4 1 Negotiable time certificates of deposit issued in denominations of $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of mutual savings banks and savings capital at savings and loan associations. 3At all commercial banks. See also Note above. MAY 1973 □ BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Period Non Re bor rowed quired Total Deposits subject to reserve requirements 3 S.A. Avail able2 Total Time and savings Total member bank deposits plus nondeposit items4 N.S.A. Demand Demand Private U.S. Govt. Total Time and savings Private U.S. Govt. S.A. N.S.A. 1969—D ec.... 1970—Dec.. . . 1971—Dec.. . . 27.96 29.12 31.21 26.70 28.73 31.06 27.73 28.91 31.06 25.34 26.98 28.91 287.7 321.3 360.3 150.4 178.8 210.4 131.9 136.0 143.8 5.3 6.5 6.1 291.2 325.2 364.6 149.7 178.1 209.7 136.9 141.1 149.2 4.6 6.0 5.7 307.7 332.9 364.3 311.1 336.8 368.7 1972—Apr...... May.... June. . . July.... Aug---Sept__ Oct....... Nov.. .. Dec___ 32.61 32.85 33.03 33.17 33.38 33.33 33.83 31.88 31.31 32.47 32.72 32.94 33.02 33.04 32.87 33.30 31.30 30.06 32.43 32.71 32.81 32.99 33.21 33.14 33.60 31.54 31.07 29.82 29.92 30.14 30.32 30.56 30.89 30.97 29.50 28.86 374.5 379.3 381.3 384.4 387.3 390.4 394.1 397.6 402.0 220.1 223.4 225.6 228.1 230.8 233.0 235.1 237.9 241.2 147.6 148.4 149.5 151.1 152.0 152.4 152.7 152.8 154.3 6.8 7.5 6.2 5.2 4.5 5.1 6.3 6.9 6.5 375.3 377.0 378.6 383.2 384.5 389.6 394.1 396.4 406.8 219.8 223.1 225.2 227.1 231.3 233.8 236.2 237.6 240.7 149.0 145.1 147.8 150.1 149.0 150.9 152.5 153.7 160.1 6.5 8.8 5.7 6.1 4.3 4.9 5.4 5.1 6.1 378.1 383.0 385.1 388.3 391.4 394.5 398.4 401.9 406.4 378.8 380.8 382.4 387.1 388.7 393.8 398.4 400.7 411.2 1973—Jan___ Feb , , , Mar.... A pr p . .. 32.24 31.65 32.00 32.34 30.85 29.79 29.53 30.18 31.98 31.44 31.77 32.08 29.41 29.30 29.62 29.87 404.7 410.2 416.7 421.3 243.7 248.5 256.0 261.8 153.9 154.5 153.2 153.6 7.1 7.2 7.5 5.8 410.4 409.0 416.3 422.5 243.8 248.5 256.2 260.5 160.0 152.4 151.6 155.1 6.6 8.1 8.5 6.8 409.2 414.8 421.6 426.4 414.9 413.5 421.2 427.7 1 Averages of daily figures. Member bank reserve series reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and M. Required reserves were in creased by $660 million effective Apr. 16, 1969, and $400 million, effective Oct. 16, 1969. Required reserves were reduced by $500 million (net) effective Oct. 1, 1970. Required reserves were reduced by approximately $2.5 billion, effective Nov. 9, 1972; by $1.0 billion, effective Nov. 15, and increased by $300 million, effective Nov. 22. 2 Reserves available to support private nonbank deposits are defined as (1) required reserves for (a) private demand deposits, (b) total time and savings deposits, and (c) nondeposit sources subject to reserve re quirements, and (2) excess reserves. This series excludes required reserves for net interbank and U.S. Govt, demand deposits. 3 Averages of daily figures. Deposits subject to reserve requirements include total time and savings deposits and net demand deposits as defined by Regulation D. Private demand deposits include all demand deposits except those due to the U.S. Govt., less cash items in process of collection and demand balances due from domestic commercial banks. Data for 1968 are not comparable with later data due to the withdrawal from the System on Jan. 2, 1969, of a large member bank. 4 Total member bank deposits subject to reserve requirements, plus Euro-dollar borrowings, bank-related commercial paper, and certain other nondeposit items. This series for deposits is referred to as “the ad justed bank credit proxy.” N ote.—For description of revised series and for back data, see article “Revision of the Money Stock Measures and Member Bank Reserves and Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. Due to changes in Regulations M and D, member bank reserves include reserves held against nondeposit funds beginning Oct. 16, 1969. Back data may be obtained from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Total loans and invest ments1,2 Total1,2 Date 1968—Dec. 31___ 1969—Dec. 314 . .. Loans Plus loans sold M ,3 Not seasonally adjusted Securities Commercial and industrial Total Plus loans sold3 U.S. Treas ury 61.0 51.5 390.6 402.1 258.2 279.4 283.3 95.9 105.7 108.3 1970—Dec. 31___ 435.9 292.0 294.9 109.6 111.7 58.0 1971—Dec. 31___ 485.7 320.6 323.4 115.5 117.1 60.7 1972—Apr. May June July Aug. Sept. Oct. Nov. Dec. 26___ 31___ 30___ 26 , 30 27 25 29 31 507.4 516.1 517.5 521.3 529.1 535.6 540.5 549.8 557.5 335.9 341.9 343.7 347.8 355.3 360.1 366.9 373.6 378.2 338.5 119.9 121.5 344.4 121.2 122.6 346.0 5120.7 5122.2 350.1 121.5 122.9 357.7 123.9 125.4 362.4 124.6 126.1 369.2 126.7 128.1 376.1 128.2 129.8 380.8 129.3 131.0 62.6 63.1 63.2 62.3 61.4 62.0 59.9 60.6 62.4 1973—Jan. Feb. Mar. Apr. 31 p . . . 28*. . . 28p. ... 25p . .. 564.6 573.7 582.6 585.3 385.5 396.2 404.9 408.0 388.2 399.3 408.0 411.6 61.9 60.2 60.6 60.6 133.2 138.1 141.8 144.1 134.9 140.2 143.8 146.4 1 Adjusted to exclude domestic commercial interbank loans. 2 Beginning June 30, 1971, Farmers Home Administration insured notes totaling approximately $700 million are included in “Other securities” rather than in “Loans.” 3 Loans sold outright by commercial banks to own subsidiaries, foreign branches, holding companies, and other affiliates. 4 Beginning June 30, 1969, data revised to include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries; earlier data include commercial banks only. Also, loans and investments are now reported gross, without valuation reserves deducted, rather than net of valuation reserves as was done previously. For a description of the revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in that table have been revised to include valuation reserves. Total loans and invest Other2 ments1,2 Total1,2 71.4 71.2 Loans Plus loans sold 1»2, 3 Securities Commercial and industrial Total Plus loans sold3 98.4 108.4 111.0 U.S. Treas ury Other2 400.4 412.1 264.4 286.1 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 104.5 497.9 328.3 331.1 118.5 120.1 64.9 104.7 108.9 111.1 110.6 111.3 112.5 113.5 113.6 115.6 116.9 506.6 513.7 521.6 521.4 525.8 535.0 540.3 549.9 571.4 335.1 341.6 349.8 350.3 353.7 360.7 365.2 371.8 387.3 337.8 120.1 121.8 344.0 120.8 122.3 352.1 5123.2 5124.6 352.6 122.3 123.7 356.0 122.2 123.7 363.0 124.2 125.7 367.5 125.8 127.2 374.3 127.6 129.2 389.9 132.7 134.4 61.9 61.2 60.3 59.6 59.3 60.3 60.9 63.2 67.0 109.7 110.9 111.5 111.5 112.8 114.0 114.2 114.9 117.1 117.1 117.2 117.2 116.6 564.9 569.7 578.3 584.1 383.3 392.0 400.6 406.8 385.9 395.1 403.8 410.5 133.7 138.7 143.7 146.8 65.4 61.3 60.7 59.8 116.2 116.4 117.0 117.5 290.0 132.0 136.6 141.7 144.5 64.5 54.7 71.5 71.3 5 Beginning June 30, 1972, commercial and industrial loans were re duced by about $400 million as a result of loan reclassifications at one large bank. Note.—For monthly data on total loans and investments 1959-70, see Dec. 1971 Bulletin, pp. 974-75. For monthly data, 1948-58, see Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the seasonally ad justed series see the following Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; Sept. 1967, pp. 1511-17; and Dec. 1971, pp. 971-73. For monthly data on commercial and industrial loans, 1959-71, see July 1972 Bulletin, p. A -l09. For description of series, see July 1972 Bulletin, p. 683. Data are for last Wednesday of month except for June 30 and Dec. 31; data are partly or wholly estimated except when June 30 and Dec. 31 are call dates. A 18 CO M M ERCIAL BANKS □ MAY 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Deposits Total assets— Interbank3 Other Securities Total Cash lia assets 3 bilities Demand Total3 and De capital U.S. mand Time ac Treas Other U.S. ury counts4 Govt. Other Loans and investments Class of bank and date Total All commercial banks: 1941—Dec. 31... 50,746 1945—Dec. 31... 124.019 1947—Dec. 31 6. 116,284 Loans 21,714 21,808 26,083 90,606 38,057 69,221 10,982 7,225 26,551 79,104 71,283 7,331 34,806 160,312 150,227 14,065 9,006 37,502 155,377 144,103 12,792 240 31... 30... 31... 31 7. 31... 31... 322,661 359,903 401,262 421,597 461,194 516,564 217,726 235,954 265,259 295,547 313,334 346,930 56,163 48,772 62,473 61,477 64,466 71,537 54,709 71,341 61,742 86,118 64.930 104,704 26.. 31... 30... 26 r. , 30 r. , 27.. 25.. N ov. 29.. Dec. 31.. 525,660 532,260 542,689 542,940 547,880 556,380 561,280 574,230 598, 354.120 360.120 370,910 371,820 375,780 382,100 386,190 396,160 414,696 61,860 109, 61,240 110, 60,258 111, 59,580 111. 59,300 112; 60,290 113; 60.930 114; 63,210 114; 67,028 117; 590,220 597,890 605,040 612.020 408,590 420.210 427,320 434,750 65,410 116,220 61,330 116,350 60,730 116,990 59,810 117,460 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 1972—Apr. May June July Aug. Sept. Oct. 1973—Jan. Feb. Mar. Apr. 31*.. 28* 28*.. 25*.. 44,349 105,921 1,343 94,367 Bor row ings Time 5 15,952 30,241 35,360 403,368 451,012 500,657 530,665 576,242 640,255 352,287 395,008 434,023 435,577 480,940 537,946 19,770 21,883 24,747 27,174 30,608 32,205 967 4,992 167,751 158,806 4,859 32,054 13,767 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1,211 5,010 199,901 203,154 8,899 37,006 13,679 735 5,054 208,870 193,744 18,360 39,978 13,661 1,975 7,938 209,335 231,084 19,375 42,958 13,686 2,908 10,169 220,375 272,289 25,912 47,211 13,783 95,040 100,910 99,472 91.610 91,830 91,660 102,830 91,460 113,128 645,410 659,070 667,126 660,300 665,870 674,780 691,880 694,050 739,033 533,270 544.720 552,543 544.860 546.720 556,490 567,620 572,160 616,037 26.140 28,240 28,782 27,210 27,090 26,880 29,040 27,060 33,854 2,870 10,470 208,490 285,300 31,630 47,780 13,823 3,020 8,430 215,360 289,670 33,270 48,310 13,838 3,114 9,083 219,050 292,513 33,214 50,117 13,875 3,260 8,320 211,100 294,970 34,440 49,380 13,877 3,350 3,820 211,020 301,440 36,070 49,820 13,898 3.890 9,470 213,070 303,180 33.530 50,140 13.910 3,760 7,520 221,440 305,860 39,680 50,700 13.911 3,920 7,760 224,990 308,430 38,350 51.160 13,924 4,194 10,875 252,223 314,891 38,083 52,658 13,927 96,560 99.610 91,210 91,880 715,670 727,520 726,010 734,480 588.860 596,440 593,590 600,420 29,250 29,510 25,900 26.140 3.890 10,390 227,580 317,750 4,170 11.350 226,290 325,120 4,530 11.350 218,980 332,830 10,850 223,380 335,170 4 ,i 13,939 13,952 13.974 13.974 4 5,886 208 7,589 54 8,464 6,619 6,884 6,923 128,831 4,618 26,278 147,442 5,370 28,098 162,605 8,458 30,060 149,569 17,395 32,047 179,229 18,578 34,100 209,406 25,046 37,279 6,150 6,071 5,978 5,869 5,766 5,727 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31.. 30... 31.. 31 7 31... 31... 263,687 293,120 325,086 336.738 365,940 405,087 182,802 196,849 220,285 242,119 253,936 277,717 41,924 46,956 47,881 39,833 45,399 47,633 38,960 49,315 56,920 54,785 66,604 79,738 60,738 68,946 73,756 79,034 81,500 86,189 18,788 20,811 23,519 25,841 29,142 30,612 794 1,169 1,061 609 1,733 2,549 26... 31... 30... 26 30 27 r. . 25 r. N ov. 29 r. Dec. 31.. 409,925 414,469 422,356 422,079 425,369 432,150 435,460 446,621 465,788 282,298 286,310 294,730 295,250 297,828 303,049 305,996 314,463 329,548 44,643 44,403 43,708 42,932 42,727 43,506 43,691 45,799 48,715 82,984 83,756 83,918 83,897 84,814 85,595 85,773 86,359 87,524 82,345 513,123 418,730 24,893 87,524 523,538 427,426 26,913 8 6 ,430 529.645 4 3 3 ,5 7 4 27,311 79,081 522,579 426,141 25,825 79,058 526,089 426,716 25,742 78,504 532,741 434,554 25,502 88,220 546,642 442,792 27,528 78,554 548,333 446,441 25,759 96,566 585,125 482,124 31,958 2,510 2,663 31 r. 28.. 28.. 25*.. 458,760 465,065 471,067 476.739 324,637 334,609 340,667 346,865 47,333 43,698 43,259 42,517 86,790 86,758 87,141 87,357 82,499 85,264 77,728 78,219 565,071 575,222 573,531 580,412 3,260 8.461 177,677 241,788 3,537 9,364 176,525 247,932 3,895 9,407 170,560 254,654 4,242 9,167 173,671 256,561 Large member banks: New York City:8,9, 1941—Dec. 31. 1945—Dec. 31... 1947—Dec. 31... 12,896 26,143 20,393 4,072 7,265 7,334 17,574 7,179 11,972 1,559 1,235 1,242 6,637 6,439 7,261 19,862 32,887 27,982 17,932 4,202 30,121 4,640 25,216 4,453 35,941 39,059 42,968 48,305 47,161 48,714 4,920 6,027 5,984 5,048 6,009 5,597 5,674 7,055 8,094 6.980 9,177 9,031 14,869 18,797 19,948 22,349 21,715 22,663 64,424 74,609 81.364 87,753 89,384 91,461 51,837 6,370 467 60,407 7,238 741 63,900 8,964 622 62,381 10,349 268 67,186 12,508 956 71,723 13,825 1,186 63,467 49,539 65,719 50,799 66,597 51,637 66,331 51,408 67,353 52,031 68,924 53,166 69,136 53,835 71,707 55,533 75,034 58,713 4,825 5,257 5,338 4,954 5,158 5,368 5,045 5,712 5,696 9,103 9,663 9,623 9,969 10,164 10,390 10,256 10,462 10,625 21,014 22.516 22,535 19.517 19,152 17,864 21,261 21,556 26,416 90.364 93,765 94,377 91,247 92,066 92,484 96,657 98,990 107,603 68,798 70,852 72,432 69,508 69,330 70,323 72,568 74,550 82,446 11,451 12,303 12,933 11,580 11,679 11,414 12,386 12,639 15,094 73,744 75,727 76,368 76,834 5,439 10,001 23,203 102,923 4,463 9,635 23,059 105,571 4,498 9,286 20,133 103,402 4,254 9,185 19,710 103,622 77,213 79,567 77,435 77,295 13,919 14,040 11,744 11,935 1973—Jan. Feb. Mar. Apr. 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31.. 30.. 31.. 31 7 31.. 31.. 1972—Apr. May June July Aug. Sept. Oct. 26.. 31.. 30.. 26.. 30.. 27.. 25.. N ov. 29.. Dec. 31.. 1973—Jan. Feb. Mar. Apr. 31.. 28.. 28.. 25.. For notes seep. A-21. 46,536 52,141 57,047 60,333 62,347 63,342 58,304 61,629 62,584 63,395 5,961 23,113 68,121 61,717 10,385 6,070 29.845 138,304 129,670 13,576 7,304 32.845 132,060 122,528 12,353 334,559 373,584 412,541 432,270 465.644 511,353 291,063 326,033 355,414 349,883 384,596 425,380 458,943 465,395 463,004 468,385 27,757 28,037 24,488 24,744 140 1,709 64 22,179 50 1,176 2 ,7 1 7 2,867 2,954 3,495 3,360 3,520 3,561 4,432 4,631 4,309 4,114 6.460 8,427 37,136 69,640 80,609 138,218 151,980 163,920 169,750 168,032 174,385 42,730 45.530 45,500 45,920 52,280 52,670 53.160 53,440 43,521 107,183 97,846 1972—Apr. May June July Aug. Sept. Oct. 23 7,173 14,278 219 8,950 14,011 65 10,059 14,181 69,119 77,928 83,752 89,984 93,643 99,832 Members of F.R. System: 1941—Dec. 31 .. 1945—Dec. 31.. 1947—Dec. 31.. 18,021 19,539 22,775 78,338 32,628 57,914 Total Num capital ber ac of counts banks 12,347 24,210 28,340 8,939 164,071 218,317 30,406 37,928 5.713 6,825 169,496 221,529 31,907 38,356 5.713 31,752 39,358 5.714 6,954 165,390 225,105 32,845 38,896 5,705 2,966 164,851 230,203 34,409 39,226 5.702 8,033 166,353 231,171 31,962 39,437 5.703 6,172 172,615 233,117 37,857 39,824 5,699 6,463 175,739 234,960 36,480 40,219 5,701 9,024 197,817 239,763 36,357 41,228 5.704 7 ,6 3 0 172,419 2 2 3 ,4 9 8 866 17 6,940 12 267 12,051 17,287 19,040 807 1,236 1,445 26,535 31,282 33,351 36,126 32,235 30,943 17,449 20,062 20,076 14,944 20,448 24,256 40,994 41,309 41,578 41,806 5,690 5,688 5.683 5.683 1,648 195 2,120 30 2,259 36 37 37 40,256 42,912 42,649 43,076 5,298 5,715 6,137 6,301 6,486 7,285 12 12 12 12 12 12 1,162 2,013 28,842 1,198 1.038 29,918 1,175 1.038 30,637 1,312 1,170 28,396 288 27,497 1,345 1,591 1,454 27,718 1,530 1,097 29,046 1,752 1,032 30,710 1,833 1,418 35,373 25.330 6,650 7,372 26,395 8,103 7,618 26,649 7,314 7,650 27,050 7,431 7,612 28,521 8,188 7,736 28,146 6,861 7,714 28,509 9,170 7,756 28,417 9,335 7,944 28,728 9,502 8,042 12 13 13 13 13 13 13 13 13 1,574 1,708 1,951 2,229 29,171 10,142 31,780 10,321 32,919 9,938 32.331 9,891 8,074 8,142 8,047 8,093 13 13 13 13 1,016 1,084 888 694 1,039 1,513 1,257 1,506 1,789 1,732 31,292 30,533 29,032 29,068 1,874 1,880 2,733 4,405 4,500 5,195 MAY 1973 p CO M M ERCIAL BANKS A 19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Class of bank and date Large member banks (cont.): City of Chicago: 8,9 1941—Dec. 31........... 1945—Dec. 31........... 1947—Dec. 31........... Total 2,760 5,931 5,088 Loans l Deposits Total assets— Interbank3 Total Securities Other lia Cash bilities assets3 and Demand capital Total3 U.S. Times De Time Treas Other ac 2 mand U.S. counts4 ury Govt. Other 954 1,430 1,333 4,213 1,801 2,890 376 385 397 1,566 1,489 1,739 4,363 7,459 6,866 4,057 7,046 6,402 1,035 1,312 1,217 127 2,419 1,552 3,462 72 4,201 476 719 913 4,898 6,013 6,171 4,626 6,117 7,530 Total Num capital ber ac of counts banks Bor row ings 288 377 426 13 12 14 484 383 682 1,290 1,851 1,935 1,199 1,346 1,433 1,517 1,586 1,682 11 10 9 9 9 9 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31........... 30........... 31........... 31 7....... 31........... 31........... 11,802 12,744 14,274 14,365 15,745 17,133 8,756 9,223 10,286 10,771 11,214 12,285 1,545 1,574 1,863 1,564 2,105 1,782 1,502 1,947 2,125 2,030 2,427 3,067 2,638 2,947 3,008 2,802 3,074 3,011 14,935 16,296 18,099 17,927 19,892 21,214 12,673 13,985 14,526 13,264 15,041 16,651 1,433 1,434 1,535 1,677 1,930 1,693 25 21 21 15 49 168 310 6,008 267 6,250 257 6,542 175 6,770 282 6,663 364 6,896 1972—Apr. May June July Aug. Sept. Oct. Nov. Dec. 26........... 31........... 30........... 26........... 30........... 27........... 25........... 29........... 31........... 17,761 18,147 18,541 18,582 19,20C 19,270 19,530 20,370 21,362 12,998 13,283 13,782 14,130 14,701 14,582 15,021 15,379 16,294 1,510 1,665 1,662 1,398 1,455 1,545 1,435 1,597 1,873 3,253 3,199 3,096 3,054 3,044 3,143 3,074 3,394 3,195 3,207 21,858 3,538 22,697 2,946 22,562 3,070 22,727 2,880 23,128 3,135 23,479 3,119 23,714 2,659 24,042 3,580 26,009 16,017 16,509 16,912 16,695 17,147 17,812 17,738 18,021 19,851 1,344 1,412 1,331 1,447 1,487 1,406 1,455 1,262 1,615 191 182 139 194 196 224 196 217 160 465 282 261 310 68 374 192 213 509 6,381 7,636 6,631 8,002 6,603 8,579 6,157 8,587 6,226 9,170 6,435 9,373 6,264 9,631 6,565 9,764 7,387 10,179 2,972 3,280 2,639 3,187 2,985 2,768 2,945 3,137 3,008 1,829 1,836 1,857 1,850 1,850 1,859 1,875 1,855 1,891 9 9 9 9 9 9 9 9 9 1973—Jan. 31........... Feb. 28........... Mar. 28........... 21,026 21,982 22,660 22,800 16,371 17,544 17,980 18,253 1,562 1,384 1,470 1,414 3,093 3,055 3,210 3,133 2,939 3,513 3,092 3,277 25,035 26,575 26,821 27,170 18,709 19,429 19,854 20,020 1,364 1,433 1,326 1,304 247 224 266 333 358 442 461 426 6,605 6,778 6,439 6,639 3,276 4,075 3,910 3,971 1,895 1,891 1,878 1,899 9 9 9 9 Other large member: 8,9 1941_Dec 31........... 1945—Dec. 31........... 1947—Dec. 31........... 15,347 40,108 36,040 7,105 6,467 8,514 29,552 13,449 20,196 1,776 8,518 24,430 2,042 11,286 51,898 2,396 13,066 49,659 22,313 49,085 46,467 4,356 6,418 5,627 104 491 12,557 4,806 30 8,221 24,655 9,760 22 405 28,990 11,423 1,967 2 2,566 1 2,844 351 359 353 8,593 9,374 10,181 10,663 11,317 11,241 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31........... 30........... 31........... 31 7....... 31........... 31........... 95,831 69,464 105,724 73,571 119,006 83,634 121,324 90,896 133,718 96,158 149,401 106,361 1972—Apr. May June July Aug. Sept. Oct. Nov. Dec. 26........... 31........... 30........... 26 T......... 30 r......... 27. r ....... 25. T....... 29........... 31........... 149,586 151,153 155,085 154,528 153,957 156,822 157,630 163,011 171,549 1973—Jan. Feb. Mar. Apr. 31........... 28........... 28........... 25........... 168,522 169,752 172,681 175,754 All other member: 8,9, 10 1941—Dec. 31........... 1945—Dec. 31........... 1947—Dec. 31........... 12,518 35,002 36,324 13,040 14,667 15,036i 11,944 14,700I 15,912, 10,135 10,552 11,362 11,318 13,326 17,487 20,337 18,484 22,860i 27,129 24,228 26,867 28,136 29,954 31,263 33,732 123,863 136,626 151,957 157,512 171,733 190,880 108,804 120,485 132,305 126,232 140,518 155,226 1,633 1,715 1,884 1,575 2,547 3,557 49,004 53,288 57,449 58,923 59,328 62,474 49,341 1,952 9,471 55,798 2,555 10,032 62,484 4,239 10,684 54,829 9,881 11,464 66,734 10,391 12,221 77,020 14,799 13,197 169 163 161 157 156 156 107,362 108,846 113,213 113,172 112,638 115,352 115,642 119,961 126,661 14,434■ 27,790i 14,362: 27,945: 14,141 27,731 13,873 27,483 13,501 27,818 13,692, 27,778; 13,699' 28,289' 14,734• 28,316i 16,316i 28,572: 32,579 34,413 33,806 30,738 31,452 31,640 35,635 29,350 36,729 79,453 80,690 80,970 81,139 82,383 82,761 83,252 84,248 86,372 16,766 16,435 17,592 17,626 18,450 17,816 20,500 18,629 19,392 13,725 13,890 14,020 14,011 14,062 14,132 14,193 14,331 14,687 157 157 157 157 156 157 156 156 156 15,844 13,957 13,615 13,414 30,426 32,397 29,634 30,111 894 3,839 151,394 9,079 155,174 9,985 1,020 2,763 156,850 9,645 1,008 3,527 153,678 9,593 1,098 2,868 152,570 9,458 1,150 1,015 156,023 9,509 1,285 3,512 158,214 10,202 1,239 2,374 159,305 8,844 1,156 2,828 173,913 11,133 1,173 3,860 163,418 9,239 1,044 3,470 165,050 9,365 1,210 3,942 165,250 8,355 1,283 3,761 168,360 8,470 1,285 4,069 58,129 60,716 61,701 58,980 58,564 58,956 61,147 62,229 71,376 123,907 126,901 129,991 133,253 190,334 193,947 197,155 193,595 193,592 196,672 201,551 200,829 217,170 207,904 211,296 211,358 215,262 63,011 62,627 60,676 61,487 86,654 87,906 91,175 93,049 21,086 22,434 22,182 22,606 14,619 14,760 14,819 14,905 156 156 156 156 30 225 10,109 6,258 17 5,465 24,235 12,494 17 432 28,378 14,560 4 11 23 5,890 4,377 5,596 26,999 10,199 22,857 28,771 28,894 29,075: 29,087 2,250 6,402 19,466 17,415 2,408 10,632 46,059 43,418 3,268 10,778 47,553 44,443 792 1,207 1,056 233 310 307 242 592 933 1,982 6,219 2,525 6,476 2,934 6,519 109,518 68,641 122,511 74,995 134,759 83,397 140,715 92,147 154,130 99,404 175,211 110,357 22,419 24,689 24,998 21,278 22,586 24,343 18,458 22,826 26,364 27,291 32,140 40,511 19,004 20,334 22,664 23,928 25,448 26,783 131,338 146,052 161,122 169,078 184,635 207,798 117,749 131,156 144,682 148,007 161,850 181,780 2,392 2,766 2,839 3,152 3,387 3,853 69 96 111 84 135 263 1,474 1,564 1,281 1,671 2,592 2,993 56,672 57,144 61,161 65,569 66,578 73,873 67,930 75,170 69,806 85,930 74,072 100,600 308 552 804 1,820 1,836 3,118 10,309 11,005 11,807 12,766 13,807 15,114 5,958 5,886 5,796 5,691 5,589 5,550 1972—Apr. 26........... 179,111 179,450 June 30........... 182,133 182,638 Aug. 30 r......... 184,859 Sept. 27 r......... 187,134 Oct. 25 r......... 189,164 Nov. 29 ' ......... 191,533 Dec. 31........... 197,843 112,399 113,382 116,098 116,540 118,458 119,949 121,498 123,590 127,881 23,874 23,119 22,568 22,707 22,613 22,901 23,512 23,756 24,830 42,838 42,949 43,467 43,391 43,788 44,284 44,154 44,187 45,132 25,545 27,057 27,142 25,756 25,574 25,865 28,205 24,989 29,841 210,567 213,129 215,551 215,010 217,303 220,106 224,720 224,472 234,342 182,521 3,019 184,891 3,213 187,380 3,401 186,260 3,205 187,669 3,118 190,396 3,173 194,272 3,485 194,565 3,014 205,914 4,116 263 263 395 263 263 395 395 395 395 2,622 2,742 2,804 2,606 1,595 2,693 2,509 2,390 3,238 70,719 105,898 72,231 106,442 73,479 107,300 71,857 108,329 72,564 110,129 73,244 110,891 76,158 111,725 76,235 112,531 83,681 114,483 4,018 4,089 4,208 4,601 4,786 4,517 5,242 5,379 4,455 15,002 15,012 15,831 15,423 15,578 15,732 16,000 16,089 16,608 5,535 5,534 5,535 5,526 5,524 5,524 5,521 5,523 5,526 195,468 197,603 199,358 201,351 126,055 128,535 130,112 131,964 24,488 23,894 23,676 23,435 44,925 45,174 45,570 45,952 25,931 26,295 24,869 25,121 229,209 231,780 231,950 234,358 199,603 201,349 200,465 202,710 395 395 395 395 3,376 3,474 3,396 2,940 76,769 115,828 76,587 117,694 74,413 119,198 76,477 119,863 5,752 6,082 6,619 6,608 16,406 16,516 16,834 16,909 5,512 5,510 5,505 5,505 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 1973—Jan. Feb. Mar. Apr. 31........... 30........... 31........... 317......... 31........... 31........... 31'......... 28........... 28........... 25p......... For notes seep. A-21. 3,235 3,199 3,063 3,035 A 20 COMMERCIAL BANKS □ MAY 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Classification by FRS membershin and FDIC insurance Total Insured banks: Total: 1941_Dec. 31.. 49,290 1945—Dec. 31.. 121,809 1947—Dec. 31.. 114,274 Loans l Deposits Total assets— Interbank3 Securities Total Other Cash lia assets3 bilities and Total3 Demand De capital U.S. Other 2 Treas mand Time ac counts4 ury U.S. 1 Govt. I Other i | Loans and investments 21,259 21,046 25,765 88,912 37,583 67,941 6,984 25,788 76,820 69,411 10,i654 1,762 7,131 34,292 157,544 147,775 13,!883 23,740 8,750 36,926 152,733 141,851 12,615 54 1,325 Total Num capital ber ac of counts banks i 1 i 15,699 29,876 34,882 10 6,844 13,426 215 8,671 13,297 61 9,734 13,398 6,712 140,702 110,723 6,487 154,043 126,185 5,508 159,659 146,084 3,571 25,277 13,284 2,580 27,377 13,486 4,325 29,827 13,540 881 4,975 166,689 159,396 1 ,258 5,219 182,984 183,060 1 ,155 5,000 198,535 203,602 4,717 31,609 13,533 5,531 33,916 13,510 8,675 36,530 13,481 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 443 733 923 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 41,298 80,276 92,975 Time 5 Bor row ings 1969—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 800 695 5,624 192,357 200,287 14,450 38,321 13.464 5,038 207,311 194,237 18,024 39,450 13.464 1971—Dec. 31.. 514,097 345,386 64,691 104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—June 30.. 539,093 368,275 59,984 110,833 98,252 661,838 549,985 28,398 Dec. 31.. 594,502 411,525 66,679 116,298 111,333 732,519 612,822 33,366 3,033 9,062 217,641 291,850 32,828 49,623 13,669 4,113 10,820 250,693 313,830 37,556 52,166 '13,721 National member: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 11,725 12,039 13,925 51,250 21,428 38,674 3,806 14,977 4,137 20,144 5,178 22,024 35 1,088 23,262 14,013 45,473 795 53,541 8,322 16,224 19,278 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 146 211 458 3,691 76,836 3,604 84,534 3,284 92,533 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 1969—June 307. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 27,571 69,312 65,280 43,433 90,220 88,182 39,458 84,939 82,023 6, 786 9,:229 8,375 4 78 45 3,640 4,644 5,409 5,117 5,017 5,005 61,288 70,746 85,522 1,704 13,548 1,109 15,048 2,627 17,434 4,615 4,773 4,815 437 652 657 3,035 96,755 93,642 3,142 106,019 107,684 3,090 116,422 122,597 3,120 18,459 3,478 19,730 5,923 21,524 4,799 4,758 4,716 437 361 3,534 113,134 120,060 9,895 22,628 3,049 121,719 114,885 12,279 23,248 4,700 4,668 1971—Dec. 31.. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—June 30.. 316,880 220,102 33,258 63,520 60,181 392,043 322,288 15,715 Dec. 31.. 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 1,838 2,155 5,695 128,454 170,586 22,816 28,713 6,646 146,800 184,622 26,706 30,342 4,606 4,612 State member: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 15,950 37,871 32,566 6,295 7,500 8,850 27,089 11,200 19,240 2,155 8,145 24,688 1,933 9,731 48,084 2,125 10,822 43,879 22,259 44,730 40,505 3, 739 4,'411 3,978 1963—Dec. 20.. 1964—Dec. 31.. 1965—Dec. 31.. 72,680 77,091 74,972 46,866 15,958 9,855 15,760 91,235 51,002 15,312 10,777 18,673 98,852 51,262 12,645 11,065 15,934 93,640 78,553 86,108 81,657 1966—Dec. 31.. 1967—Dec. 30.. 1968—Dec. 31.. 77,377 85,128 89,894 54,560 11,569 11,247 19,049 99,504 58,513 12,649 13,966 22,312 111,188 61,965 12,581 15,348 22,803 116,885 1969—June 307. Dec. 31.. 88,346 90,088 64,007 9,902 14,437 26,344 119,358 65,560 10,257 14,271 24,313 119,219 15 621 8,166 381 13,874 24,168 27,068 4,025 7,986 9,062 5,655 6,486 5,390 236 453 382 2,295 2,234 1,606 40,725 44,005 39,598 29,642 32,931 34,680 1,795 1,372 1,607 7,506 7,853 7,492 1,497 1,452 1,406 85,547 95,637 98,467 6,200 6,934 8,402 357 516 404 1,397 1,489 1,219 41,464 45,961 47,498 36,129 40,736 40,945 1,498 1,892 2,535 7,819 8,368 8,536 1,351 1,313 1,262 93,858 94,445 9,773 9,541 285 248 1,341 1,065 45,152 48,030 37,307 35,560 4,104 5,116 8,689 8,800 1,236 1,201 1971—Dec. 31.. 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1972—June 30.. 105,895 Dec. 31.. 115,426 75,047 10,450 20,398 26,248 138,021 111,705 11,595 82,889 11,530 21,008 29,176 150,697 123,186 12,862 879 1,406 1,935 2,378 43,965 51,017 53,331 55,523 8,936 10,645 9,651 10,886 1,108 1,092 4 53 1,560 149 4,162 10,635 12,366 3,360 5,680 6,558 1 2,246 130 2,945 9 3,055 1,502 1,867 1,918 Nonmember: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 5,776 14,639 16,444 3,241 1,509 2,992 10,584 4,958 10,039 1,025 1,063 1,448 2,668 4,448 4,083 8,708 19,256 20,691 7,702 18,119 19,340 262 1963—Dec. 20.. 1964—Dec. 31.. 1965—Dec. 31.. 42,464 46,567 52,028 23,550 13,391 26,544 13,790 30,310 14,137 5,523 6,233 7,581 5,942 7,174 7,513 49,275 54,747 60,679 44,280 49,389 54,806 559 658 695| 61 70 83 726 649 618 23,140 25,504 27,528 19,793 22,509 25,882 1966—Dec. 31.. 1967—Dec. 30.. 1968—Dec. 31.. 56,857 64,449 73,553 33,636 13,873 9,349 37,675 15,146 11,629 43,378 16,155 14,020 7,777 8,403 9,305 65,921 74,328 84,605 59,434 67,107 76,368 709 786 908 87 89 94 543 588 691 28,471 31,004 34,615 29,625 34,640 40,060 99 162 217 5,342 5,830 6,482 7,384 7,440 7,504 1969—June 307. Dec. 31.. 78,032 82,133 48,358 14,341 15,333 8,696 51,643 14,565 15,925 10,056 88,802 94,453 78,610 83,380 791 1,017 78 85 749 924 34,070 37,561 42,921 43,792 451 629 7,004 7,403 7,528 7,595 1971—Dec. 31.. 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—June 30.. 116,317 Dec. 31.. 128,333 73,126 16,276 26,915 11,822 131,774 115,992 81,594 17,964 28,774 14,767 147,013 130,316 1,088 1,408 316 552 1,432 1,796 45,222 52,876 67,934 73,685 For notes seep. A-21. 129 244 6 7 7 959 1,083 1,271 6,810 6,416 6,478 72 4,234 99 4,488 91 4,912 7,173 7,262 7,320 1,076 10,265 7,955 1,199 10,938 '8,017 MAY 1973 □ COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Deposits Total assets— Total Interbank3 Securities Other Cash lia assets3 bilities and Demand capital Total3 De U.S. Time mand ac Treas Other 2 counts 4 ury U.S. Govt. Other Loans and investments Classification by FRS membership and FDIC insurance Total Loans l Noninsured nonmember: 1941—Dec. 31......... 1945—Dec. 31......... 1947—Dec. 316........ 1,457 2,211 2,009 455 318 474 761 1,693 1,280 241 200 255 763 514 576 2,283 2,768 2,643 1,872 2,452 2,251 3; .9 181 177 1963—Dec. 20......... 1964—Dec. 31......... 1965—Dec. 31......... 1,571 2,312 2,455 745 1,355 1,549 463 483 418 362 474 489 374 578 572 2,029 3,033 3,200 1,463 2,057 2,113 190 273 277 83 86 85 1967—Dec. 30......... 1968—Dec. 31......... 2,638 2,901 1,735 1,875 370 429 533 597 579 691 3,404 3,789 2,172 2,519 285 319 1969—June 30 7....... Dec. 31......... 2,809 2,982 1,800 2,041 321 310 688 632 898 895 3,942 4,198 2,556 2,570 1971—Dec. 31......... 3,147 2,224 239 684 1,551 5,130 1972—June 30........ Dec. 31........ 4,192 4,865 3,230 3,731 274 349 688 785 1,220 1,794 5,884 7,073 Total nonmember: 1941—Dec. 31......... 1945—Dec. 31......... 1947—Dec. 31......... 7,233 16,849 18,454 3,696 2,270 3,310 12,277 5,432 11,318 1,266 1,262 1,703 3,431 10,992 9,573 4,962 22,024 20,571 4,659 23,334 21,591 45>7 425 439 1963—Dec. 20......... 1964—Dec. 31......... 1965—Dec. 31......... 44,035 24,295 13,854 48,879 27,899 14,273 54,483 31,858 14,555 5,885 6,707 8,070 6,316 51,304 45,743 7,752 57,780 51,447 8,085 63,879 56,919 1967—Dec. 30......... 1968—Dec. 31......... 67,087 39,409 15,516 12,162 76,454 45,253 16,585 14,617 1969—June 30 7 . . . . Dec. 31......... Time Bor Total Num ber row capital ac of ings counts banks 5 1,2 91 1,905 18 1,392 253 365 478 13 4 4 329 279 325 852 714 783 17 23 17 832 1,141 1,121 341 534 612 93 99 147 389 406 434 285 274 263 58 56 15 10 1,081 1,366 733 767 246 224 457 464 211 197 298 316 81 41 15 16 1,430 1,559 731 638 290 336 502 528 209 197 2,923 380 116 19 1,273 1,134 283 480 181 3,153 3,775 384 488 81 81 21 55 1,409 1,530 1,258 1,620 386 527 494 491 206 206 190 5 ,i !04 14,101 167 13,758 3,613 6,045 7,036 18 11 12 1,288 1,362 1,596 7,662 7,130 7,261 749 931 972 144 156 168 743 23,972 20,134 672 26,645 23,043 635 28,649 26,495 165 198 238 4,623 4,894 5,345 7,458 7,536 7,583 8,983 77,732 69,279 9,997 88,394 78,887 1,071 1,227 147 150 603 32,085 35,372 701 35,981 40,827 408 441 6,286 6,945 7,651 7,701 80,841 50,159 14,662 16,021 9,594 92,743 81,166 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,090 1,333 160 126 765 35,500 43,652 940 39,120 44,430 741 965 7,506 7,931 7,737 7,792 1971—Dec. 31........ 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 1972—June 120,510 76,357 16,550 27,603 13,042 137,658 119,145 Dec. 31........ 133,198 85,325 18,313 29,559 16,562 154,085 134,091 1,472 1,895 397 633 1 Beginning June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as securities, and Export-Import Bank portfolio fund participations were reclassified from loans to securities. This reduced Total loans and increased “Other securities” by about $1 billion. Total loans include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are included in “Federal funds sold, etc.,” on p. A-22. Beginning June 30, 1971, Farmers Home Administration notes are classified as “Other securities” rather than “Loans.” As a result of this change, approximately $300 million was transferred to “Other securities” for the period ending June 30, 1971, for all commercial banks. See also table (and notes) at the bottom of p. A-30. 2 See first two paragraphs of note 1. 3 Reciprocal balances excluded beginning with 1942. 4 Includes items not shown separately. See also note 1. 5 See third paragraph of note 1 above. 6 Beginning with Dec. 31, 1947, the series was revised; for description, see note 4, p. 587, May 1964 Bulletin. 7 Figure takes into account the following changes beginning June 30, 1969: (1) inclusion of consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves—rather than net as previously reported. 8 Beginning Nov. 9,1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the Bulletin for July 1972, p. 626. Categories shown here as “large” and “all other” parallel 185 866 9,932 8,056 1,453 46,631 69,192 1,462 10,759 8,161 1,850 54,406 75,305 1,726 11,429 r8,223 the previous “reserve city” and “country” categories, respectively (hence the series are continuous over time). 9 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, p. 993. For various changes between reserve city and country status in 1960-63, see note 6, p. 587, May 1964 Bulletin. (See also note 8.) 10 Beginning May 6, 1972, two New York City country banks, with deposits of $1,412 million, merged and were reclassified as a reserve city bank. (See also note 8.) N ote.—Data are for all commercial banks in the United States (includ ing Alaska and Hawaii, beginning with 1959). Commercial banks represent all commercial banks, both member and nonmember; stock savings banks; and nondeposit trust companies. For the period June 1941—June 1962 member banks include mutual savings banks as follows: three before Jan. 1960, two through Dec. 1960, and one through June 1962. Those banks are not included in insured commercial banks. Beginning June 30, 1969, commercial banks and member banks exclude a small national bank in the Virgin Islands; also, member banks exclude, and noninsured commercial banks include, through June 30, 1970, a small member bank engaged exclusively in trust business. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. Data for national banks for Dec. 31, 1965, have been adjusted to make them comparable with State bank data. Figures are partly estimated except on call dates. For revisions in series before June 30, 1947, see July 1947 Bulletin, pp. 870-71. A 22 COMMERCIAL BANKS □ MAY 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans * Class of bank and call date Total loans * and invest ments Total:2 1947—Dec. 31.. 116.284 Fed eral funds sold, Total etc.2 3.4 Investments For To U.S. Treasury purchasing financial securities 6 or carrying Com institutions Other, mer Agri- securities to Real cial cules in- Other 5 diand tur- To tate vidin al s bro Bills uals3 dus kers To Banks Others and Notes Bonds Total certifi trial and others deal cates ers 38,057 18,167 1,660 830 1,220 115 9,393 5,723 947 69,221I 9,982 6,034 53,205 5,276 3,729 1969—Dec. 31 io 422,728 9,928 286,750 108,443 10,329 5,739 4,027 2,488 15,062 70,020 63,256 7,388 1972—June 30. 543.285 20,598 350,910 123,162 13,610 8,608 4,012 5,041 18,353 89,227 80,243 8,651 Dec. 31. 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 All insured: 1941—Dec. 31. 49,290 1945—Dec. 31.. 121,809 1947—Dec. 31.. 114,274 21,259 9,214 1,450 614 662 25,765 9,461 1.314 3,164 3,606 37,583 18,012 1,610 823 1,190 1969—Dec. 31 io 419,746 9,693 284,945 1972—June 30. 539,093 19,568 348,707 Dec. 31. 594,502 25,584 385,941 Member—Total: 1941—Dec. 31.. 43,521 1945—Dec. 31.. 107,183 1947—Dec. 31.. 97,846 107,685 10.314 5,644 122,064 13,593 8,491 131,422 14,287 11,165 40 49 114 ) ......... } ......... } ......... 4,773 4,505 4,677 2,361 1,132 9,266 5,654 914 3,991 2,425 14,890 69,669 63,008 7,319 3,998 4,761 18,266 89,048 79,933 8,553 4,460 6,115 23,277 98,204 86,912 10,099 18,021 8,671 972 594 598 22,775 8,949 855 3,133 3,378 32,628 16,962 1,046 811 1,065 39 47 113 State and local Other secu govt. rities 5 secu rities 59,183 12,158 86,598 24,923 89,504 27,579 988 3,159 16,899 3,651 3,333 521,526 16,045 51,342 3,873 3,258 1 9,676 5,918 52,347 5,129 3,621 i 58,840 11,869 86,286 24,547 89,173 27,125 > ... ^ ......... > .. . 3,494 3,653 3,455 1,900 1,057 7,130 4,662 839 ► 971 3,007 15,561 3,090 2,871 ! 19,260 14,271 44,807 3,254 2,815 7,803 4,815 45,295 4,199 3,105 1969—Dec. 31 io 337,613 7,356 235,639 96,095 6,187 5,408 3,286 2,258 14,035 53,207 48,388 6,776 1972—June 30. 422,775 15,561 279,588 104,419 7,924 8,260 3,477 4,520 17,104 66,518 59,603 7,765 Dec. 31. 466,169 19,961 309,969 112,110 ,495 10,863 3,870 5,783 22,026 73,131 64,490 9,201 47,227 7,558 67,777 16,141 69,640 17,884 New York C ity : 11 1941—Dec. 31.. 12,896 1945—Dec. 31.. 26,143 1947—Dec. 31 20,393 4,072 2,807 7,334 3,044 7,179 5,361 1969—Dec. 31 io 60,333 1972—June 30. 66,597 Dec. 31. 75,034 802 47,503 28,189 649 50,987 25,972 812 57,901 27,864 City o f Chicago : 11 2,760 5,931 5,088 954 732 760 1,333 1,801 1,418 1969—Dec. 31 io 14,365 1972—June 30. 18,541 Dec. 31. 21,362 215 10,556 6,444 783 12,999 7,179 718 15,576 7,851 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. Other large banks:11 1941—Dec. 31.. 15,347 1945—Dec. 31.. 40,108 1947—Dec. 31.. 36,040 7,105 3,456 8,514 3,661 13,449 7,088 412 169 2,453 1,172 545 267 3,695 5,665 7,057 6 2 3 123 80 111 522 287 272 564 238 52 233 87 50 337 66 666 140 1,330 262 225 282 114 194 427 1,503 170 484 22 36 46 95 51 40 149 26 186 1,219 842 862 242 2,015 1,011 1,054 341 2,780 1,066 1,138 4 17 15 354 542 648 1,873 1941—Dec. 31.. 12,518 1945—Dec. 31.. 35,002 1947—Dec. 31.. 36,324 5,890 1,676 5,596 1,484 10,199 3,096 659 648 818 1969—Dec. 3110 141,286 3,318 89,401 23,762 ,739 1972—June 30. 182,479 5,857 110,587 29,498 ,023 Dec. 31. 198,156 8,504 119,690 31,911 ,327 Nonmember: 1947—Dec. 31.. 18,454 20 42 23 183 471 227 498 947 366 917 452 1,040 2 4 5 148 2,263 28,824 26,362 1,858 21,278 308 2,381 35,859 33,215 2,019 22,568 455 2,565 39,262 35,458 2,220 24,830 614 20 156 2,266 1,061 329 348 453 741 535 622 231 1,028 16,813 14,868 521 1,249 22,711 20,640 803 1,377 25,250 22,741 t Beginning with June 30, 1948, figures for various loan items are shown gross (i.e., before deduction of valuation reserves); they do not add to the total and are not entirely comparable with prior figures. Total loans continue to be shown net. See also note 10. 2 Includes securities purchased under resale agreements. Prior to June 30, 1967, they were included in loans—for the most part in loans to “Banks.” Prior to Dec. 1965, Federal funds sold were included with “Total” loans and loans to “Banks.” 3 See table (and notes), Deposits Accumulated for Payment o f Personal Loans, p. A-30. 830 629 604 6,192 788 8,491 ,132 9,107 1,518 256 1,600 367 153 1,022 749 1,864 248 2,274 182 181 213 193 204 185 1,837 2,771 2,820 192 325 375 16,625 1,859 23,510 4,222 24,049 4,523 1,823 110 4,377 1,528 481 3,787 1,222 1,028 1,881 707 359 26,999 5,732 4,544 16,722 1,342 I,067 3,827 1,979 224 22,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 3110 85,115 2,572 51,111 12,348 4,141 1972—June 30. 120,510 5,037 71,319 18,743 5,686 Dec. 31. 133,198 6,701 78,624 20,591 5,819 5,432 1,205 729 606 638 1,527 6,467 1,508 295 751 5,421 956 820 855 387 1,459 8,016 5,653 15,883 1,126 916 3,147 1,969 351 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io 121,628 3,021 88,180 37,701 1,386 878 1,300 876 6,006 19,706 17,569 2,757 1972—June 30. 155,158 8,272 105,014 41,770 1,803 1,563 1,566 2,136 7,771 24,358 20,772 3,275 14,141 Dec. 31. 171,618 9,927 116,802 44,483 1,977 2,024 1,707 2,716 10,268 27,014 22,669 3,943 16,316 All other menber:u 311 1,623 5,331 3,910 3,325 10,339 1,642 558 9,772 776 1,047 4,547 3,835 3,595 1,807 768 1,834 4,936 5,288 4,561 1,930 841 2,271 6,413 5,789 5,225 2,390 48 211 73 300 205 225 32 26 93 22,572 4,718 33,005 10,463 33,664 II,468 109 11,318 2,179 1,219 7,920 1,073 612 14,875 886 16,550 969 18,313 625 11,956 4,600 18,820 8,782 19,864 9,695 4 Breakdowns of loan, investment, and deposit classifications are not available before 1947; summary figures for 1941 and 1945 appear in the table on pp. A-20—A-23. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as “Other securities,” and Export-import Bank portfolio fund participations were reclassified from loans to “Other securities.” This increased “Other securities” by about $1 billion. 6 Beginning with Dec. 31, 1965, components shown at par rather than at book value; they do not add to the total (shown at book value) and are not entirely comparable with prior figures. See also note 10. Notes continued on opposite page. MAY 1973 □ CO M M ERCIAL BANKS A 23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Class of bank and call date Total: s 1947—Dec. 3 1 .... Re Cur serves rency with and F.R. Banks coin De Bal ances mand with de do posits mestic ad banks7 justed 8 Interbank U.S. Do For Govt. mestic7 eign9 17,796 2,216 10,216 87,123 11,362 1,430 1,343 State and local govt. 6,799 Time deposits Certi fied and offi cers’ checks, etc. 2,581 IPC 84,987 U.S. Govt. Inter and bank Postal Sav ings 240 1969—Dec. 31 io.. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 1972—June 3 0 ... 27,119 6,799 25,764 184,468 25,522 3,261 9,083 17,687 10,652 190,710 3,114 Dec. 3 1 ... 26,070 8,666 32,185 212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 All insured: 1941_Dec. 3 1 .... 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 1969— 1972— 673 1,762 12,396 1,358 8,570 37,845 9,823 15,810 1,829 11,075 74,722 12,566 1,248 23,740 17,796 2,145 9,736 85,751 11,236 1,379 1,325 3,677 5,098 6,692 1,077 2,585 2,559 36,544 72,593 83,723 158 70 54 Dec. 31io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 June 3 0 ... 27,119 6,773 24,713 182,806 25,335 3,064 9,062 17,568 10,172 189,900 3,033 Dec. 3 1 ... 26,070 8,637 30,734 210,287 29,731 3,635 10,820 18,459 11,177 221,057 4,113 Member—Total: 1941—Dec. 3 1 .... 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 12,396 1,087 15,811 1,438 17,797 1,672 6,246 33,754 9,714 671 1,709 7,117 64,184 12,333 1,243 22,179 6,270 73,528 10,978 1,375 1,176 3,066 4,240 5,504 1,009 2,450 2,401 33,061 62,950 72,704 140 64 50 1969—Dec. 31io.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 1972—June 3 0 ... 27,119 5,093 15,822 138,566 24,363 2,947 7,630 13,177 8,859 150,382 2,717 Dec. 3 1 ... 26,070 6,582 19,396 158,464 28,521 3,437 9,024 13,544 9,503 174,770 3,562 New York C ity : 11 8 127 20 1,552 21 72 233 237 285 34 66 63 2,152 3,160 3,853 96 92 99 175 261 509 268 295 223 229 217 264 6,273 6,091 6,899 15 139 160 1 216 2 1,047 847 95 4,302 6,307 5,497 54 491 110 8,221 131 405 1,144 1,763 2,282 286 611 705 11,127 22,281 26,003 104 30 22 20 38 45 3,456 44,169 10,072 3,845 45,929 9,026 4,688 52,813 10,426 590 1,575 618 3,527 707 3,860 3,934 3,923 3,854 1,928 2,586 3,075 1,021 942 1,070 43 36 30 298 200 175 2,215 3,153 3,737 1,027 1,292 1,196 1969—Dec. 3110.. 1972—June 3 0 ... Dec. 3 1 ... 869 1,142 1,496 123 94 152 150 199 173 5,221 5,224 5,783 1,581 1,239 1,516 4,060 6,326 7,095 425 494 562 2,590 11,117 2,174 22,372 2,125 25,714 6 17 12 1941—Dec. 3 1 .... 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 2,210 4,527 4,993 526 796 929 3,216 9,661 4,665 23,595 3,900 27,424 790 1,199 1,049 2 225 8 5,465 432 7 1,370 2,004 2,647 239 435 528 8,500 21,797 25,203 30 17 17 1969—Dec. 3110.. 1972—June 3 0 ... Dec. 3 1 ... 7,179 3,302 9,084 3,042 8,794 3,807 7,870 62,729 8,176 67,101 9,681 76,597 3,080 3,329 4,047 72 1,671 72 2,804 70 3,238 7,905 8,144 8,726 1,721 2,255 2,571 58,304 63,080 72,384 84 395 395 544 3,947 13,595 385 8,383 38,644 1,706 9,942 45,901 2,084 12,789 53,658 1,112 1,159 1,449 1969—Dec. 31 io 1972—June 30 Dec. 31 1 ,644 167 1 ,295 180 12,284 190 222 940 313 1,453 446 1,851 4,284 4,510 5,044 1,416 1,793 2,182 33,420 40,328 47,180 126 397 633 55 7 Beginning with 1942, excludes reciprocal bank balances. 8 Through 1960 demand deposits other than interbank and U.S. Govt., less cash items in process of collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. Govt., less cash items in process of collection. 9 For reclassification of certain deposits in 1961, see note 6, p. 589, May 1964 Bulletin. 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves. See also notes 1 and 6. 11 Beginning Nov. 9,1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the Bulletin for July 1972, p. 626. Categories shown here as “large” and “all other” io 12 4 5,886 208 7,589 54 8,464 29 20 14 778 1 ,648 1,206 ‘ *195 2,120 1,418 30 2,259 207 14,692 4,405 6,301 45 24 2,331 24,294 7,314 7,650 10 2,522 26,196 9,502 8,042 2 53,062 242 55,192 1,008 64,447 1,173 10 6,844 215 8,671 61 9,734 186 9,951 140,308 17,395 32,047 387 25,668 197,861 31,752 39,358 468 28,553 211,124 36,357 41,228 28,354 268 26,020 1,175 31,040 1,833 1941—Dec. 31___ 1945—Dec. 31___ 1947—Dec. 31___ Nonmember:3 1947—Dec. 31 418 11,878 399 23,712 693 27,542 6,605 3,801 3,592 463 383 508 All other member: 11 50 99 105 1,168 816 741 141 10,761 78 15,065 70 16,653 65 10,059 211 13,166 180,860 18,024 39,450 491 33,027 258,332 32,828 49,623 606 37,086 276,138 37,556 52,166 694 455 21,316 8,708 1,641 3,601 20,312 10,768 2,165 1,038 4,854 23,271 12,532 2,562 1,418 4,358 5,375 5,695 1969—Dec. 3110.. 9,044 1,787 1972—June 3 0 ... 11,516 1,574 Dec. 31.. . 10,085 2,114 492 15,146 496 29,277 826 33,946 11,282 15,712 17,646 1969—Dec. 311°.. 1972—June 3 0 ... Dec. 3 1 ... 1941—Dec. 3 1 .... 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 59 103 111 450 1,338 1,105 93 111 151 Other large banks : 11 866 34,383 319 237 290 5,105 4,015 4,639 Bor Capi tal row ac IPC 3 ings counts 211 13,221 181,443 18,360 39,978 492 33,110 259,506 33,214 50,117 606 37,161 277,683 38,083 52,658 3,595 607 866 3,535 1,105 6,940 267 3,236 1,217 1941—Dec. 31__ 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... City o f Chicago : 11 111 State and local govt. 9 476 719 902 288 377 426 4,409 1,290 1,517 7,529 2,639 1,857 9,237 3,008 1,891 243 4,542 160 9,563 332 11,045 2 1 1,967 2,566 2,844 86 4,609 50,439 9,881 11,464 180 10,809 70,054 17,592 14,020 181 11,811 74,449 19,392 14,687 31 52 45 146 6,082 219 12,224 337 14,177 4 1,982 11 2,525 23 2,934 54 4,920 70,768 1,820 12,766 182 11,480 95,983 4,208 15,831 181 13,373 101,243 4,455 16,608 6 172 6,858 12 1 ,596 25 3,269 41,135 965 7,931 104 7,442 61,645 1,462 10,759 138 8,608 66,559 1,726 11,429 parallel the previous “reserve city” and “country” categories, respectively (hence the series are continuous over time). N ote.—Data are for all commercial banks in the United States; member banks in U.S. possessions were included through 1968 and then excluded. For the period June 1941—June 1962 member banks include mutual savings banks as follows: three before Jan. 1960, two through Dec. 1960, and one through June 1962. Those banks are not included in all insured or total banks. A small noninsured member bank engaged exclusively in trust business is treated as a noninsured bank and not as a member bank for the period June 30, 1969—June 30, 1970. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. A 24 WEEKLY REPORTING BANKS □ MAY 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Wednesday Total loans and invest ments Other To brokers and dealers involving— Total To com mer cial banks U.S. Treas ury se curi ties Other se curi ties For purchasing or carrying securities To others Total Com mer cial and indus trial Agri cul tural To brokers and dealers U.S. Treas ury secs. Other secs. To nonbank financial institutions To others U.S. Treas ury secs. Other secs. Pers. and sales finan. COS., etc. Other Large banks— Total 1972 290,346 290,101 291,360 287,885 12,173 11,315 11,358 10,171 11,442 10,143 10,091 9,206 491 843 887 616 193 194 234 157 174 150 178 112 195,803 195,826 197,540 197,182 83,789 83,929 84,604 84,664 2,401 2,408 2,436 2,456 639 607 656 466 6,546 6,303 6,696 6,258 170 167 166 194 2,520 2,524 2,528 2,520 6,595 6,638 6,626 6,524 8,271 8,296 8,446 8,400 Mar. 7.............. 14.............. 21.............. 28.............. 333,110 332,122 333,801 333.755 15,117 12,848 12,983 12,561 13,177 11,495 10,681 11,436 1,180 933 1,412 837 528 322 796 171 232 98 94 117 237,107 238,627 240,053 240,541 97,531 98,547 99,771 99,872 3,046 3,056 3,058 3,073 1,083 641 880 712 7,220 7,254 6,942 6,792 265 239 243 241 2,935 2,937 2,926 2,926 7,780 7,863 7,714 7,926 13,448 13,776 14,052 14,320 Apr. 334,632 335,088 334,864 337.755 12,912 12,746 11,851 14,639 11,658 11,317 10,857 12,730 849 967 711 1,494 214 261 143 138 191 201 140 277 241,461 241,820 243,372 243,377 100,316 100,833 101,931 101,901 3,094 3,108 3,124 3,119 1,148 856 570 497 6,584 6,584 6,177 6,220 242 210 211 212 2,919 2,925 2,932 2,964 7,892 7,842 7,943 7,902 14,533 14,530 14,768 14,646 61,456 60,340 61,125 59,949 1,026 487 1,166 1,414 917 465 1,115 1,365 10 109 22 43 31 46,227 45,562 45,815 45,254 25,291 25,182 25,197 25,110 28 28 27 28 532 482 510 349 4,365 4,147 4,393 4,138 48 45 45 49 615 615 625 627 2,177 2,031 1,892 1,889 2,017 2,016 2,034 1,999 Mar. 7............. 14............. 21............. 28............. 70,302 70,230 71,266 70,687 1.164 1,029 1,535 1,509 1,090 905 1,459 1,433 43 103 50 60 56,098 56,428 56,508 56,378 28,183 28,556 28,850 28,688 55 57 56 56 950 498 714 589 4,395 4,555 4,235 4,124 43 42 43 45 658 658 649 649 2,359 2,371 2,196 2,397 4,041 4,196 4,236 4,363 Apr. 70,913 69,783 69,641 71,119 1,438 686 1.164 2,950 1,324 606 997 2,863 45 45 146 67 56,683 56,037 55,842 55,734 28,846 28,633 28,729 28,650 53 52 55 54 1,004 708 463 415 3,848 3,930 3,660 3,741 43 44 46 47 650 652 652 654 2,331 2,236 2,276 2,319 4,512 4,498 4,508 4,530 228,890 11,147 10,398 229,761 10,871 9,706 230,235 10,276 9,028 227,936 8,677 7,841 491 843 887 606 193 194 226 149 65 128 135 81 149,576 150,264 151,725 151,928 58,498 58,747 59,407 59,554 2,373 2,380 2,409 2,428 107 125 146 117 2,181 2,156 2,303 2,120 122 122 121 145 1,905 1,909 1,903 1,893 4,418 4,607 4,734 4,635 6,254 6,280 6,412 6,401 Apr. 5............. 12............. 19.............. 26.............. 1973 4*........... 11*........... 18*........... 25*............ New York City 1972 Apr. 5............. 12............. 19............. 26............. 1973 4*........... 11*........... 18*........... 25*........... Outside New York City 1972 Apr. 5. 12. 19. 26. 1973 Mar. 7. 14. 21. 28. 262,808 261,892 262,535 263,068 13,953 12,087 11,819 10,590 11,448 9,222 11,052 10,003 1,137 830 1,362 777 528 322 796 171 201 77 68 101 181,009 182,199 183,545 184,163 69,348 69,991 70,921 71,184 2,991 2,999 3,002 3,017 133 143 166 123 2,825 2,699 2,707 2,668 222 197 200 196 2,277 2,279 2,277 2,277 5,421 5,492 5,518 5,529 9,407 9,580 9,816 9,957 Apr. 263,719 265,305 265,223 266,636 11,474 10,334 12,060 10,711 10,687 9,860 11,689 9,867 804 922 565 1,427 214 259 143 138 122 184,778 168 185,783 119 187,530 257 J 187,643 71,470 72,200 73,202 73,251 3,041 3,056 3,069 3,065 144 148 107 82 2,736 2,654 2,517 2,479 199 166 165 165 2,269 2,273 2,280 2,310 5,561 5,606 5,667 5,583 10,021 10,032 10,260 10,116 4*. 11*. 18*. 25*. For notes see p. A-28. MAY 1973 □ WEEKLY REPORTING BANKS A 25 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Notes and bonds maturing— To commercial banks Real estate Do mes tic For eign Con sumer instal ment Wednesday For eign govts. 2 All other Total Bills Certif icates Within 1 yr. 1 to 5 yrs. After 5 yrs. Large hanks — Total 1972 40,031 40,197 40,396 40,578 1,273 1,098 1,090 1,089 47,052 47,230 47,379 47,501 3,208 3,350 3,379 3,358 47,489 47,744 47,997 48,112 3,269 3,191 3,303 3,292 2,503 2,532 2,484 2,557 24,400 24,458 24,568 24,693 955 931 934 949 15,710 15,738 15,910 15,834 28,628 28,460 28,170 26,776 4,889 4,796 4,652 3,295 4,836 4,776 4,738 4,762 15,683 15,695 15,682 15,627 3,220 3,193 3,098 3,092 28,484 28,548 28,581 28,709 1,238 1,235 1,253 1,263 18, £ 18,884 18,615 18,701 25,348 25,180 25,267 25,373 4,454 4,431 4,608 4,900 3,622 3,607 3,778 3,816 15,071 14,968 14,768 14.608 2,201 2,174 2,113 2,049 . Mar. 7 ..........14 .........21 ......... 28 28,808 28,901 29,051 29,161 1,216 1,223 1,234 1,216 19,162 18,986 19,216 19,244 25,960 25,424 24,840 24,743 5,513 5,177 4,687 4,745 3,861 3,821 3,790 3,774 14.609 14,382 14,310 14,194 1,977 2,044 2,053 2,030 .Apr. 4* ......... 11* ......... 18* ......... 25 v . Apr. 5 ......... 12 ......... 19 ......... 26 1973 4,789 4,887 4,915 4,891 New York City 1972 4,254 4,268 4,293 4,307 439 260 255 260 1,077 1,060 1,114 1,175 5,221 169 217 239 1,195 1,311 1,282 1,299 2,211 2,268 2,398 2,287 140 169 232 225 1,318 1,293 1,325 1,309 2,099 2,131 2,165 2,127 1,912 1,913 1,913 1,912 559 562 556 565 2,913 2,953 2,961 2,846 5,561 5,434 5,272 4,629 1,751 1,601 1,483 818 1,034 1,021 1,038 1,033 2,506 2,525 2,529 2,533 270 287 222 245 ............................. Apr. 5 ........................................ 12 ........................................ 19 ........................................ 26 738 739 739 741 3,899 3,853 3,734 3,737 4,032 4,078 4,237 4,204 959 1,125 1,275 1,410 508 479 525 560 2,280 2,214 2,242 2,087 285 260 195 147 ............................. Mar. 7 ........................................ 14 ........................................ 21 ........................................ 28 717 708 707 707 3,961 3,814 3,848 3,775 4,646 4,481 4,191 3,947 1,838 1,700 1,523 1,390 571 524 494 528 2,148 2,048 1,980 1,860 209 194 169 ............................. Apr. 4?’ ........................................ 11* ........................................ 18 p ........................................ 25* 1973 2,161 2,169 2,176 2,181 Outside New York City 1972 35,777 35,929 36,103 36,271 834 838 835 829 1,426 1,472 1,370 1,382 22,488 22,545 22,655 22,781 396 369 378 384 12,797 12,785 12,949 12,988 23,067 23,026 22,1 22,147 3,138 3,195 3,169 2,477 3,802 3,755 3,700 3,729 13,177 13,170 13,153 13,094 2,950 2,906 2,876 2,847 ............................. Apr. 5 .........................................12 .........................................19 .........................................26 41,931 42,061 42,162 42,262 2,013 2,039 2,097 2,059 2,717 2,799 2,862 2,860 26,334 26,393 26,422 26,545 500 496 514 522 14,990 15,031 14,881 14,964 21,316 21,102 21,030 21,169 3,495 3,306 3,333 3,490 3,114 3,128 3,253 3,256 12,791 12,754 12,526 12,521 1,916 1,914 1,918 1,902 ............................. Mar. 7 ......................................... 14 .......................................... 21 .......................................... 28 42,349 42,575 42,765 42,887 1 951 1 1,978 1,983 2,690 2,756 2,750 2,764 26,647 26,732 26,875 26,980 499 515 527 509 15,201 15,172 15,368 15,469 21,314 20,943 20,649 20,796 3,675 3,477 3,164 3,355 3,290 3,297 3,296 3,246 12,461 12.334 12,330 12.334 1, 1,835 1,859 1,861 .................................. II* .................................. 18 * 1973 For notes see p. A-28. .............................Apr. 4p .......................................... 25 p A 26 WEEKLY REPORTING BANKS □ MAY 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Investments (cont.) Other securities Wednesday Total Obligations of State and political subdivisions Tax war rants 3 All other Other bonds, corp. stock, and securities Certif. of partici pation4 Cash items in process of collec tion Re serves with F.R. Banks Cur rency and coin Bal ances with do mestic banks Invest ments in sub sidiar ies not consol idated Other assets Total assets/ total liabil ities All others Large banks — Total 1972 53,742 54,457 54,208 53,836 9,190 9,428 9,196 9,188 36,921 37,220 37,076 37,004 1,547 1,553 1,558 1,567 6,084 6,256 6,378 6,077 30,202 30,341 30,447 29,413 21,013 19,796 20,352 23,252 3,372 3,650 3,699 3,760 9,169 8,240 7,919 8,118 933 933 933 943 16,646 16,498 16,489 16,635 371,681 369,559 371,199 370,006 Mar. 7......................... 14......................... 21......................... 28......................... 55,538 55,467 55,498 55,280 8,622 8,632 8,516 8,349 38,204 38,133 38,303 38,328 1,730 1,765 1,744 1,738 6,982 6,937 6,935 6,865 28,431 29,482 26,882 26,867 17,895 20,192 19,178 20,321 3,649 3,920 3,926 4,037 9,287 9,050 8,571 9,272 1.170 1.172 1.170 1.172 18,846 18,941 18,516 18,853 412,388 414,879 412,044 414,277 Apr. 54,299 55,098 54,801 54,996 7,344 7,886 7,587 7,671 38,389 38,470 38,319 38,361 1,686 1,813 1,831 1,802 6,880 6,929 7,064 7,162 28,890 27,957 28,561 28,072 19,428 18,984 24,431 19,239 3,575 3,873 3,991 4,152 9,653 8,910 9,302 9,399 1,181 1.159 1.159 1.160 19,322 19,207 19,088 19,406 416,681 415,178 421,396 419,183 8,642 8,857 8,872 8,652 2.256 2,324 2.256 2,320 5,288 5,386 5,363 5,197 274 270 269 284 824 877 984 851 10,172 10,481 10,714 11,478 5,150 5,410 4,586 5,511 411 436 420 429 3,662 2,650 2,677 2,911 434 435 435 443 5,303 5,222 5,293 5,327 86,588 84,974 85,250 86,048 Mar. 7......................... 14......................... 21......................... 28......................... 9,008 8,695 8,986 8,596 2,166 2,052 2,060 1,927 5,331 5,136 5,446 5,248 510 525 510 510 1,001 982 970 911 9,367 10,341 8,810 9,824 4,966 4,955 4,334 4,958 451 483 466 478 3,858 3,670 3,213 3,869 609 611 609 611 6,030 6,073 5,972 6,165 95,583 96,363 94,670 96,592 Apr. 8,146 8,579 8,444 8,488 1,344 1,727 1,586 1,598 5,350 5,288 5,231 5,258 478 524 540 536 974 1,040 1,087 1,096 9,003 8,961 8,515 9,342 4,878 5,093 7,370 4,851 446 475 460 475 3,768 3,355 3,777 4,012 618 592 591 590 6,401 95,990 94,491 96,516 96,790 45,100 45,600 45,336 45,184 6,934 7,104 6,940 6,868 31,633 31,834 31,713 31,807 1,273 1.283 1,289 1.283 5,260 5,379 5,394 5,226 20,030 19,860 19,733 17,935 15,863 14,386 15,766 17,741 2,961 3,214 3,279 3,331 5,507 5,590 5,242 5,207 499 498 498 500 11,343 11,276 11,196 11,308 285,093 284,585 285,949 283,958 Mar. 7......................... 14......................... 21......................... 28......................... 46,530 46,772 46,512 46,684 6.456 6,580 6.456 6.422 32,873 32,997 32,857 33,080 1,220 1,240 1,234 1,228 5,981 5,955 5,965 5,954 19,064 19,141 18,072 17,043 12,929 15,237 14,844 15,363 3,198 3,437 3,460 3,559 5,429 5,380 5,358 5,403 561 561 561 561 12,816 12,868 12,544 12,688 316,805 318,516 317,374 317,685 Apr. 46,153 46,519 46,357 46,508 6,000 6,159 6,001 6,073 33,039 33,182 33,088 33,103 1,208 1,289 1,291 1,266 5,906 5,889 5,977 6,066 19,887 18,996 20,046 18,730 14,550 13,891 17,061 14,388 3,129 3,398 3,531 3,677 5,885 5,555 5,525 5,387 563 567 568 570 12,958 12,975 12,926 13,005 320,691 320,687 324,880 322,393 Apr. 5......................... 12......................... 19......................... 26......................... 1973 4*........................ 11?........................ 18*........................ 25 *........................ New York City 1972 Apr. 5......................... 12......................... 19......................... 2 6 1973 4*........................ 11*........................ 18*........................ 25*........................ Outside New York City 1972 Apr. 5......................... 12......................... 19......................... 26......................... 1973 4*....................... 11*....................... 18*....................... 25*....................... For notes seep. A-28. MAY 1973 o WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits D emand Time and savings Domestic interbank Total IPC States and polit ical sub divi sions U.S. Govt. C om mer cial IPC Foreign Com M utual Govts., mer sav etc. 2 ings cial banks Certi fied and offi cers* checks T otal6 Sav ings Other States and polit ical sub divi sions D o mes tic inter bank Wednesday F or eign govts. 2 Large banks— Total 1972 149,108 147,023 148,943 146,768 104,431 106,145 105,148 102,707 6,622 6,466 6,275 6,347 5,061 22,083 2,938 20,750 6,675 19,983 7,472 19,941 917 832 775 735 757 766 746 732 2,559 2,516 2,505 2,585 6,678 6,610 6,836 6,249 144,190 144,928 145,770 146,743 57,811 57,633 57,315 57,279 61,408 17,197 61,671 17,929 61,736 18,996 62,264 19,467 2,183 2,193 2.150 2.150 5,146 5,067 5,141 5,140 , 150,278 150,969 147,836 149,421 106,553 109,812 105,659 105,786 6,420 5,880 6,393 6,582 6,287 20,240 4,991 19,733 6,961 18,777 7,258 19,059 698 674 679 653 864 909 799 858 3,084 2,711 3,061 3,123 6,132 6,259 5,507 6,102 170,276 172,379 173,107 174,302 58,213 58,299 58,426 58,591 79,895 81,633 81,708 82,599 21,436 21,735 21,825 21,789 2,990 2,954 3,175 3,336 7,075 7,109 7,324 7,316 153,559 148,971 152,923 151,302 109,277 110,114 110,686 107,715 6,455 6,727 6,373 6,215 6,064 2,144 6,389 7,399 957 879 795 726 759 817 918 953 3,019 3,103 3,097 3,138 6,102 6,254 5,936 5,915 174,788 176,005 175,340 176,056 58,669 58,506 58,150 58,092 82,803 83,149 82,498 83,008 21,791 22,453 22,904 23,120 3,538 3,851 3,711 3,682 7,315 , 7,335 7,350 7,442 . .A pr. 5 .........12 ........ 19 ........ 26 1973 20,926 18,933 18,729 19,241 .M ar. 7 .........14 .........21 .......... 28 .A pr. 4* .........11* .........18* .........25* New York City 1972 40,208 38,746 39,802 40,655 22,735 22,816 23,156 23,192 507 520 388 313 1,112 487 1,690 1,963 9,513 8,748 8,279 9,094 530 473 419 406 619 621 607 593 1,797 1,753 1,726 1,819 3,395 3,328 3,537 3,275 24,171 24,647 24,929 24,938 5,778 12,443 5,765 12,745 5,725 12,880 5,727 12,881 1,874 2,097 2,258 2,274 1,119 1,141 1,109 1,094 2,846 , 2,808 2.859 . 2.860 . .A pr. 5 .........12 .........19 .........26 39,378 40,104 38,291 40,227 23,000 24,059 22,461 22,941 463 338 468 516 1,203 888 1.725 1.726 8,619 8,814 8,143 8,849 360 341 356 346 726 774 656 709 2,139 1,873 2,160 2,245 2,868 3,017 2,322 2,895 30,957 31,654 31,551 31,850 5,497 5,499 5,482 5,494 18,000 18,637 18,344 18,581 2,190 2,249 2,298 2,213 1,622 1,620 1,727 1,869 3,541 3,543 3,609 3,597 .M ar. 7 .........14 .........21 .........28 40,255 38,078 39,415 40,339 23,534 23,398 23,342 23,185 556 588 482 289 1,326 329 1,735 1,671 9,219 7,773 8,066 9,075 562 487 424 378 616 676 772 800 2,111 2,198 2,168 2,211 2,331 2,629 2,426 2,730 32,141 32,289 31,362 31,530 5,459 18,655 5,431 18,598 5,389 18,061 5,372 18,199 2,294 2,259 2,019 2,034 2,065 2,304 2,187 2,141 3,570 3.599 3.600 3,679 1973 . . . . .A pr. 4* .........11* .........18* .........25* Outside New York City 1972 108,900 108,277 109,141 106,113 81,696 83,329 81,992 79,515 6,115 5,946 5,887 6,034 3,949 2,451 4,985 5,509 12,570 12,002 11,704 10,847 387 359 356 329 138 145 139 139 762 763 779 766 3,283 3,282 3,299 2,974 120,019 120,281 120,841 121,805 52,033 51,868 51,590 51,552 48,965 48,926 48,856 49,383 15,323 15,832 16,738 17,193 1,064 1,052 1,041 1,056 2,300 2,259 , 2,282 2,280 110,900 110,865 109,545 109,194 83,553 85,753 83,198 82,835 5,957 5,542 5,925 6,066 5,084 4,103 5,236 5,532 11,621 10,919 10,634 10,210 338 333 323 307 138 135 143 149 945 838 901 878 3,264 3,242 3,185 3,207 139,319 140,725 141,556 142,452 52,716 52,800 52,944 53,097 61,895 62,996 63,364 64,018 19,246 19,486 19,527 19,576 1,368 1,334 1,448 1,467 3,534 3,566 3,715 . 3,719 .M ar. 7 .........14 .........21 .........28 113,304 110,893 113,508 110,963 85,743 86,716 87,344 84,530 5,899 6,139 5,891 5,926 4,738 1,815 4,654 5,728 11,707 11,160 10,663 10,166 395 392 371 348 143 141 146 153 908 905 929 927 3,771 3,625 3,510 3,185 142,647 143,716 143,978 144,526 53,210 53,075 52,761 52,720 64,148 19,497 64,551 20,194 64,437 20,885 64,809 21,086 1,473 1,547 1,524 1,541 3,745 3,736 3,750 3,763 •Apr. 4* .........11* .........18* .........25* .A pr. 5 .........12 .........19 .........26 1973 For notes see p. A-28. . . . . A 28 WEEKLY REPORTING BANKS a MAY 1973 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS— Continued (In millions of dollars) Reserves for— Borrowings from — W ednesday Fed eral funds p u r F.R. chased, Banks e tc .7 Other liabili ties, Others etc.8 Loans M em oranda Secur ities Total capital ac counts Total loans (gross) ad justed9 Large negotiable Total time C D ’s loans included in time and D e and savings deposits 11 invest mand ments deposits ad (gross) Issued Issued ad justed 10 Total to to justed9 IPC's others G ross liabili ties of banks to their foreign bran ches Large banks — Total 1972 Apr. 5 ........................ 1 2 ........................ 1 9 ........................ 2 6 . . ................... 29,691 28,846 27,237 25,736 238 1,679 1,192 1,248 1,211 1,199 15,437 15,450 15,812 15,861 4.132 4,130 4.132 4,139 27,820 27,864 27,786 27,811 195,388 195,915 197,749 196,978 277,758 278,832 280,127 277,590 91,762 92,994 91,838 89,942 32,845 33,379 33,964 34,332 19,839 20,163 20,480 20,800 13,006 13,216 13,484 13,532 1,130 1,052 1,279 1,374 41 1973 M ar. 7 ........................ 14........................ 2 1 ........................ 2 8 ........................ 37,772 36,816 34,674 35,705 884 1,588 2,639 1,598 2,217 2,383 2,418 2,329 16,495 16,335 17,006 16,539 4.397 4.400 4,409 4,391 30,006 29,946 29,892 29,929 235,839 236,630 238,976 238,308 316,725 317,277 319,741 318,961 95,320 96,763 95,216 96,237 52,052 53,864 54,244 55,183 33,827 35,468 35,467 36,284 18,225 18,396 18,777 18,899 1,465 1,419 1,290 1,127 Apr. 4 ? ...................... 11^...................... 18?...................... 25 p ...................... 34,415 35,459 36,375 36,006 716 907 2,722 1,052 2,299 2,468 2,742 2,907 16,273 16,713 16,742 17,267 4,379 4.398 4.401 4,403 30,188 30,193 30,087 30,123 239,446 240,058 241,063 241,994 319,705 320,580 320,704 321,733 97,679 99,937 99,244 96,590 55,654 56,588 55,609 56,203 36,488 36,930 36,361 36,862 19,166 19,658 19,248 19,341 1,011 1,209 1,193 1,123 7,799 7,229 5 ,r~ 5,114 161 840 192 198 196 199 5,944 5,883 6,037 6,071 1.205 1.205 1,209 1,212 7,069 7,066 7,028 7,019 45,897 45,324 45,611 45,043 60,100 59,615 59,755 58,324 19,411 19,030 19.119 18.120 11,365 11,866 12,292 12,307 7,286 7,554 7,806 7,850 4,079 4,312 4,486 4,457 732 701 981 981 N ew York C ity 1972 Apr. 5 ........................ 12........................ 19........................ 2 6 ........................ 1973 Mar. Apr. 7 ........................ 14........................ 2 1 ........................ 2 8 ........................ 9,002 7,820 7,271 8.359 148 490 1,080 845 1,003 976 906 6,372 6,429 6,651 6,433 1.264 1.264 1,272 1,251 7,617 7,599 7,578 7,566 54,977 55,241 55,302 55,155 68,017 68,014 68,525 67,955 20,189 20,061 19,613 19,828 18,195 12,663 18,880 13,301 18,716 12,997 19,045 13,210 5,532 5,579 5,719 5,835 915 828 996 728 4®...................... 7.360 7,738 8,406 7,887 800 924 986 1,242 1,383 6,407 6,488 6,424 6,779 1,236 1,256 1,260 1.264 7,667 7,656 7.607 7.608 55,479 54,824 54,684 54,512 68,271 67,884 67,319 66,947 20,707 21,015 21,099 20,251 19,218 19,414 18,554 18,711 13,105 13,065 12,560 12,724 ,113 ,349 ,994 ,987 638 848 909 869 1,000 1,050 1,015 1,000 9,493 9,567 9,775 9,790 2.927 2,925 2,923 2.927 20,751 20,798 20,758 20,792 149,491 150,591 152,138 151,935 217,658 219,217 220,372 219,266 72,351 73,964 72,719 71,822 21,480 21,513 21,672 22,025 12,553 12,609 12,674 12,950 8,927 8,904 8,998 9,075 398 351 298 393 \ \ p ...................... ISP ...................... 25 p ...................... Outside N ew York C ity 1972 Apr. 5 ........................ 1 2 ........................ 19........................ 2 6 ........................ 21,892 21,617 21,349 20,622 77 839 1973 Mar. 7 ........................ 14........................ 2 1 ........................ 2 8 ........................ 28,770 28,996 27,403 27,346 736 1,098 1,559 1,598 1,372 10,123 1,380 9,906 1,442 10,355 1,423 10,106 3,133 3.136 3.137 3.140 22,389 22,347 22,314 22,363 180,862 181,389 183,674 183,153 248,708 249,263 251,216 251,006 75,131 76,702 75,603 76,409 33,857 34,984 35,528 36,138 21,164 22,167 22,470 23,074 12,693 12,817 13,058 13,064 550 591 294 399 Apr. 4 p ...................... 11 p ...................... 18 p ...................... 25 p ...................... 27,055 27,721 27,969 28,119 716 907 1,922 1,052 1,375 9,866 1,482 10,225 1,500 10,318 1,524 10,488 3,143 3,142 3.141 3,139 22,521 22,537 22,480 22,515 183,967 185,234 186,379 187,482 251,434 252,696 253,385 254,786 76,972 78,922 78,145 76,339 36,436 37,174 37,055 37,492 23,383 23,865 23,801 24,138 13,053 13,309 13,254 13,354 373 361 284 254 1 Includes securities purchased under agreements to resell. 2 Includes official institutions and so forth. 3 Includes short-term notes and bills. 4 Federal agencies only. 5 Includes corporate stock. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 7 Includes securities sold under agreements to repurchase. 8 Includes minority interest in consolidated subsidiaries. 9 Exclusive o f loans and Federal funds transactions with domestic com mercial banks. 10 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process o f collection. 11 Certificates o f deposit issued in denominations o f $100,000 o r more. MAY 1973 □ BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1973 Industry 1973 1973 A pr. 25 A pr. 18 A pr. 11 A pr. 4 M ar. 28 2,133 5,731 2,211 2,108 3,604 2,125 5,759 2,279 2,128 3,602 2,116 5,559 2,249 2,069 3,561 2,106 5,483 2,178 2,018 3,479 2,140 5,411 2,126 1,995 3,453 -7 320 85 113 151 21 378 -4 4 161 258 67 321 -3 5 68 304 3,579 3,246 1,202 2,691 1,944 3,537 3,285 1,227 2,736 1,934 3,513 3,238 1,145 2,719 1,922 3,560 3,181 1,151 2,657 1,892 3,618 3,149 1,195 2,603 1,897 -3 9 97 7 88 47 129 206 117 281 83 3,993 1,631 5,113 5,821 5,616 2,177 4,046 5,157 9,826 7,119 1,144 3,959 1,682 5,117 5,821 5,596 2,182 3,923 5,154 9,825 7,067 1,181 3,843 1,765 5,106 5,697 5,543 2,168 3,910 5,046 9,775 7,034 1,212 3,939 1,803 5,114 5,642 5,627 2,105 3,882 5,019 9,689 6,968 1,256 3,960 1,857 5.038 5,635 5,601 2.038 3,877 4,968 9,674 6,807 1,321 33 -2 2 6 75 186 15 139 169 189 152 312 -1 7 7 4,333 4,370 4,357 4,496 4,460 84,425 84,489 83,547 83,245 82,823 Total commercial and industrial loans of large commercial banks*........ 101,901 101,931 100,833 100,316 99,872 Durable goods manufacturing: Primary metals................................. Machinery......................................... Transportation equipment.............. Other fabricated metal products. . . Other durable goods........................ Nondurable goods manufacturing: Food, liquor, and tobacco........ Textiles, apparel, and leather.......... Petroleum refining........................... Chemicals and rubber..................... Other nondurable goods................. Mining, including crude petroleum and natural gas........................... Trade: Commodity dealers................. Other wholesale...................... Retail........................................ Transportation..................................... Communication................................... Other public utilities........................... Construction........................................ Services................................................. All other domestic loans..................... Bankers' acceptances........................... Foreign commercial and industrial loans.............................................. Total classified loans........................... 1972 1972 IV III 2nd half 1st half 122 808 32 236 549 20 496 -1 7 3 -2 4 -1 3 -9 9 -1 0 1 -8 5 81 82 -7 9 395 -2 5 8 57 69 -1 7 2 -3 1 0 -1 4 340 130 263 -1 4 190 75 171 455 218 746 203 640 -3 5 1 10 -9 -6 5 187 185 -2 4 -2 5 3 95 827 -1 6 6 -1 4 -2 6 2 30 -2 7 3 567 -1 8 3 -1 3 5 -1 5 8 121 -1 7 8 122 345 -2 4 -7 3 -3 1 113 341 330 66 -2 6 100 266 378 66 132 257 93 263 498 -1 5 331 63 384 635 11 179 291 304 542 972 -2 3 0 -3 3 481 61 166 235 147 531 38 558 168 302 58 141 155 307 -2 7 7 277 408 326 -6 4 71 -2 0 2 25 622 216 473 -4 2 424 939 364 494 239 100 -2 0 3 -5 0 4 5 405 -1 4 121 -7 9 483 764 -5 8 -8 4 3 -1 2 7 1,602 448 3,170 74 3,455 580 7,602 414 3,599 77 1,345 491 4,944 164 -9 2,029 3,622 3,936 8,769 4,472 1,677 6,149 1,184 Apr. Mar. Feb. See N ote to table below. ‘TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions o f dollars) O utstanding 1973 Industry D urable goods manufactur ing: Primary m etals..................... M achinery............................ Transportation equipm ent. O ther fabricated metal p roducts............................ O ther durable goods........... N ondurable goods manufac turing : Food, liquor, and tobacco. Textiles, apparel, and leather................................ Petroleum refining............... Chemicals and ru b b er........ O ther nondurable g o o d s. . Mining, including crude pe troleum and natural gas. T rade: Commodity dealers. . O ther wholesale. . . . . R etail............................ T ransportation......................... C om m unication....................... O ther public utilities............... C onstruction............................ Services...................................... All other domestic loans . . . . Foreign commercial and in dustrial lo an s................... 1973 1972 A pr. 25 M ar. 28 Feb. 28 Jan . 31 Dec. 27 Nov. 29 Oct. 25 1,315 2,555 1,180 1,335 2,313 1,174 1,305 2,300 1,218 1,331 2,264 1,247 1,268 2,154 1,205 1,278 2,034 1,256 1,282 1,907 1,201 1,303 1,905 1,307 842 1,614 785 1,520 765 1,462 749 1,346 720 1,239 707 1,196 680 1,193 1,355 1,350 1,322 1,300 1,234 1,191 978 858 1,459 1,108 892 842 1,479 1,100 840 778 1,438 1,062 766 781 1,357 1,004 723 698 1.153 '894 699 681 1,143 913 2,895 136 1,068 1,947 4,202 738 2,343 1,800 4,417 2,061 2,872 150 1,055 1,823 4,234 746 2,234 1,709 4,339 1,871 2,821 125 1,004 1,733 4,281 771 2,244 1,626 4,173 1,779 2,895 125 979 1,663 4,252 748 2,060 1,622 4,106 1,698 2,685 121 894 1,592 4,180 682 1,975 1,558 4,026 1,597 2,567 2,327 2,356 2,366 2,410 Total loans................................ *37,281 Sept. 27 Aug. 30 1972 1972 II 2nd h alf -6 7 -4 9 -5 2 27 -1 1 3 -1 3 3 -1 0 2 200 -1 5 4 41 51 4 6 -1 1 37 45 57 116 155 153 19 308 169 144 326 206 12 19 -6 -2 4 57 -1 5 -6 5 46 15 -6 3 10 -1 0 6 69 4 -7 1 22 187 29 161 231 54 64 259 151 313 274 6 14 30 148 94 121 287 8 164 43 12 -2 -1 9 146 -2 1 9 64 282 142 143 131 -2 0 5 -1 7 -2 2 -4 4 -6 9 63 269 -1 3 45 -2 6 0 18 12 11 294 -1 2 5 185 569 150 307 174 I IV 1,314 1,963 1,265 67 159 -3 1 -3 5 249 -1 0 2 679 1,188 713 1,147 65 281 1,182 1,079 1,079 731 658 1,190 939 711 679 1,159 918 677 653 1,178 879 2,726 121 880 1,588 4,070 549 1,825 1,528 3,999 1,532 2,748 123 876 1,497 4.078 '537 1,759 1,520 3,951 1,459 2,679 107 864 1,444 4,086 561 1,688 1,550 3,862 1,554 2,724 107 845 1,376 4,188 510 1,623 1,456 3,826 1,471 2,264 2,177 2,143 2,069 201 223 105 94 328 36,390 35,374 34,649 32,964 32,180 31,688 31,466 31,063 3,426 1,498 803 -4 7 7 2,301 N ote.—About 160 weekly reporting banks are included in this series; these banks classify, by industry, commercial and industrial loans am ount ing to about 90 per cent o f such loans held by all weekly reporting banks and about 70 per cent o f those held by all commercial banks. For description o f series see article “ Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin , p. 209. N et change during— III Commercial and industrial “ term” loans are all outstanding loans with an original m aturity o f more than 1 year and all outstanding loans granted under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess o f 1 year. A 30 DEMAND DEPOSIT OW NERSHIP □ MAY 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Class of bank, and quarter or month Total deposits, IPC Financial business Nonfinancial business Consumer Foreign AU other 1970—June................................................................................. 17.1 17.0 17.3 85.3 88.0 92.7 49.0 51.4 53.6 1.6 1.4 1.3 9.6 10.0 10.3 162.5 167.9 175.1 1971—Mar................................................................................. 18.3 18.1 17.9 18.5 86.3 89.6 91.5 98.4 54.4 56.2 57.5 58.6 1.4 1.3 1.2 1.3 10.5 10.5 9.7 10.7 170.9 175.8 177.9 187.5 1972—Mar................................................................................. Sept................................................................................. 20.2 17.9 18.0 18.9 92.6 97.6 101.5 109.9 54.7 60.5 63.1 65.4 1.4 1.4 1.4 1.5 12.3 11.0 11.4 12.3 181.2 188.4 195.4 208.0 1973—Mar.®............................................................................. 18.7 102.9 65.1 1.7 11.7 200.1 1971—Dec.................................................................................. 14.4 58.6 24.6 1.2 5.9 104.8 1972—Mar................................................................................. 14.0 14.3 13.7 14.1 14.3 13.6 13.7 14.1 14.5 14.7 55.9 56.9 56.2 57.3 58.5 57.4 59.0 60.0 60.5 64.4 25.0 27.0 25.4 25.7 26.1 26.0 26.2 26.2 26.7 '27.1 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.3 1.3 1.4 6.0 5.9 5.7 6.0 6.0 5.7 6.2 6.1 6.2 6.6 102.1 105.4 102.1 104.3 106.3 104.0 106.4 107.8 109.2 114.3 15.0 14.3 14.4 63.1 60.3 59.0 27.8 26.3 26.5 1.4 1.6 1.6 6.8 6.5 6.4 114.1 109.0 107.9 All commercial banks: Weekly reporting banks: June................................................................................ July................................................................................. 1973—Jan.................................................................................. Feb.................................................................................. Mar.p............................................................................. 1 Including cash items in process of collection. N ote .—Daily-average balances maintained during month as estimated from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Bulletin , p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank Dec. 31, 1969 All commercial......................... Insured................................... National member.................. State member......................... All member............................... 1,131 1,129 688 188 876 Dec. 31, 1971 680 677 387 95 482 June 30, 1972 595 592 340 79 419 Dec. 31, 1972 559 554 311 71 381 i Beginning Nov. 9,1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the B ulletin for July 1972, p. 626. Categories shown here as “large” and “all other” parallel the previous “reserve city” and “country” categories, respectively (hence the series are continuous over time). Class of bank All member—Cont. Other large banks 1........... All other member 1............ All nonmember...................... Noninsured......................... Dec. 31, 1969 304 571 255 253 2 Dec. 31, 1971 112 371 197 195 2 June 30, 1972 73 346 177 173 3 Dec. 31, 1972 69 313 177 172 5 N ote.—These hypothecated deposits are excluded from Time deposits and Loans at commercial banks, as shown in the tables on pp. A-18, A-19, and A-24-A-28 (consumer instalment loans), and in the table at the bottom of p. A-17. These changes resulted from a change in Federal Reserve regulations. See June 1966 B ulletin , p. 808. These deposits have not been deducted from Time deposits and Loans for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). MAY 1973 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 31 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS ( A m o u n ts o u t s t a n d i n g ; in m illio n s o f d o lla r s ) To own subsidiaries, foreign branches, holding companies, and other affiliates D ate To all others except banks By type o f loan By type o f loan Total Total Commercial and industrial Commercial and industrial All other All other 1973—Jan. 3 .......... 10........... 17........... 2 4 ........... 3 1 ........... 2,736 2,750 2,690 2,690 2,608 1,774 1,818 1,803 1,774 1,733 962 932 887 916 875 1,858 1,790 1,775 1,819 1,824 365 307 296 299 298 1,493 1,483 1,479 1,520 1,526 Feb. 7 ........... 14........... 2 1 ........... 2 8 ........... 2,640 2,695 2,946 3,116 1,710 1,753 2,050 2,072 930 942 896 1,044 1,841 1,839 1,841 1,848 308 308 304 296 1,533 1,531 1,537 1,552 M ar. 7 ........... 14 , 2 1 .......... 28 *■ 3,013 3,136 3,000 3,161 1,985 1,958 1,882 1,997 1,028 1,178 1,118 1,164 1,879 1,869 1,863 1,872 310 288 290 295 1,569 1,581 1,573 1,577 A pr. 4 ........... 11........... 18 2 5 ........... 3,428 3,553 3,566 3,614 2,065 2,241 2,357 2,319 1,363 1,312 1,209 1,295 1,838 1,846 1,823 1,816 285 279 286 284 1,553 1,567 1,537 1,532 N o t e .— A m o u n ts s o ld u n d e r re p u r c h a s e a g re e m e n t a re e x c lu d e d . F ig u re s in c lu d e s m a ll a m o u n t s so ld b y b a n k s o t h e r t h a n la rg e w e e k ly r e p o r tin g b a n k s . COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions o f dollars) Commercial and finance comoanv Daoer Dollar acceptances Held by— Placed through dealers End o f period Pla ced dire ctly Total Accepting banks Based on- F.R. Banks Total Others Bank related O ther1 related O ther2 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 9,058 13,279 16,535 20,497 31,709 31,765 31,103 1972—M ar................ A p r................. M a y ............... Ju n e............... July................. A ug................. Sept................ O ct.................. N ov................ D ec................. 32,681 32,814 33,055 33,482 33,891 32,998 32,645 34,073 34,067 34,721 545 532 517 542 604 705 775 821 876 930 1973—Jan.................. Feb................. M ar................ 35,727 35,196 34,052 911 11,641 956 9,968 993 8,366 Bills bought Own acct. Imports into United States Ex ports from United States All other 1,223 1,198 1,906 1,544 1,567 2,694 3,480 1,094 983 1,447 1,344 1,318 1,960 2,689 129 215 459 200 249 735 791 187 193 164 58 64 57 261 144 191 156 109 146 250 254 1,837 2,022 2,090 2,717 3,674 4,057 3,894 792 997 1,086 1,423 1,889 2,601 2,834 974 829 989 952 1,153 1,561 1,546 1,626 1,778 2,241 2,053 2,408 2,895 3,509 18,276 18,244 19,013 19,186 19,316 18,338 17,964 18,807 19,137 20,842 7,985 7,734 7,443 7,069 6,643 6,639 6,602 6,748 6,864 6,898 3,083 2,840 2,874 2,817 2,430 2,298 2,403 2,394 2,529 2,706 2,246 2,009 2,117 2,082 1,873 1,829 1,833 1,881 1,995 2,006 837 830 757 735 557 469 569 514 535 700 143 83 143 73 63 96 62 70 63 106 263 265 261 251 263 287 261 219 199 179 4,496 4,547 4,165 3,927 3,887 3,958 3,876 4,065 4,073 3,907 2,597 2,597 2,683 2,657 2,492 2,532 2,538 2,585 2,621 2,531 1,774 1,707 1,596 1,569 1,606 1,631 1,646 1,786 1,844 1,909 3,613 3,431 3,164 2,843 2,545 2,476 2,418 2,377 2,400 2,458 1,795 21,380 2,160 22,112 2,463 22,230 6,564 6,734 6,859 2,384 2,328 2,269 1,825 1,765 1,777 560 563 492 141 233 165 198 239 282 3,841 3,934 4,143 2,337 2,311 2,091 1,948 2,113 2,399 2,279 2,310 2,368 1,627 1,644 1,482 1,429 1,652 1,716 1,593 1,708 1,709 1,707 ^ D ata for commercial and finance company paper on new basis beginning Dec. 1971. The new series reflects inclusion o f paper issued directly by real estate investment trusts and several additional finance companies. Own bills For eign corr. 3,392 3,603 4,317 4,428 5,451 7,058 7,889 1,903 7,155 10,190 3,089 4,901 11,634 7,201 13,296 1,216 10,601 "*3jo78 16,814 409 12,262 1,940 17,154 495 10,923 1,478 18,207 12,233 12,394 12,043 12,325 12,319 12,239 12,313 12,737 12,345 11,242 Bank Total 1 As reported by dealers; includes finance company paper as well as other commercial paper sold in the open market. 2 As reported by finance companies that place their paper directly with investors. A 32 INTEREST RATES □ MAY 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) 1956—Apr. 13........... 33/4 Aug. 21........... 4 1957—Aug. 6........... 4% 1958—Jan. 22........... 4 Apr. 21........... 3Vi Sept. 11............ 4 1966—Mar. 10........... 5Vi June 29........... 534 6 6Vi 6-6V4 6 V4 6Vi 634 7........... 7 Mar. 17........... June 9 ............. 4%-4%- 6Va 6, 15 18 Feb. 16 Mar. 11 19 6Vi Apr. Apr. 23, May 11 July 6, 7, Oct. 20 51/4-5Vi 5Vi 5Vi-6 6 Nov. 1967—Jan. 26-27.... 514-534 Mar. 27........... 5Vi Nov. 20........... 6 1969—Jan. 43/8^1/2- Mar. 13, 23, 27. 1971—Jan. 1960—Aug. 23........... 4Vi 1965—Dec. 6........... 5 1968—Apr. 19........... Sept. 25........... Nov. 13........... Dec. 2........... 18........... 1972—Feb. 28, 1970—Mar. 25 Sept. 21 Nov. 12 23 Dec. 22 1959—May 18........... 4Vi Sept. 1............. 5 8 7 }i Rate Effective date Rate Effective date Rate Effective date Dec. 1972—Jan. m 8 Vi IVa 7 6 5Va May 514-5 Vi 5Va 27 31 3 17 24 31 5 - 51/ 8- 51/ 4 43/4-5-5i/4« 4%~434 -5 41/2-434.-5 N ote .—Beginning N ov. 1971, several banks adopted a floating prime rate keyed to money market variables. ■ denotes prime rate charged by the major commercial banks. 434*^7/8-5 3, 5, 17. 43/4 « -5 5- 1. 30. 5--51/8-5U 5m July 51/4--53/8 5Vi--534 6, 20. 53/4- 1973—Jan. 4 Feb. 2 14. 26. 27. 5-5V4* 3. 10, 2. 4, 11, 16. Dec. 26. 27, 5--5V4 5 --5 K 5 1 /4 --5 3 /8 51/2 17. 31, 5VA*-5y8 5Vl»-5% 5Vi* 53/g-5 V i5 ^ -5 ^ 51,4-53/85Vi* 5 % -5 % 5V4- 4Ya * June 12. 26. 5Va 6 1972—Oct. Nov. 6Va 1 4, 8, 22 29 43^« 5 i/4 --5 V i 5 V 4 --5 3 /8 51/2 Aug. 11 14 21, 25, Rate Effective date 5V4--53/8 514- 5V i-5 3 /4 - 53/4534--57/8 53/4 - -5 7 /8 534 m~6 534-6- 6 - - 6 14 66 - - 6 14 61/4- Mar. 19 26 6V4--634 61/2- April 18 19, 61/ 2 -6 3 4 . 634- 5V& --53/8 5 1 /4 --5 3 /8 51/2 - /- 29, 514 53 8 51/ 2 - Sept. 4 5 11 25, 51/4 - 51/ 2 51/ 2 * 51/2--55/8 5 1 /2 --5 5 /8 534 Effective April 16, 1973, with the adoption of a two tier or “ dual prime rate,” this table shows only the “large-business prime rate,” which is the range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size o f loan (in thousands of dollars) 1--9 All sizes 10-99 100-499 500-999 1,000 and over Center Feb. 1973 Nov. 1972 Feb. 1973 Nov. 1972 Feb. 1973 Nov. 1972 Feb. 1973 Nov. 1 1972 Feb. 1973 N ov. 1972 Feb. 1973 Nov. 1972 6.60 6.27 6.78 6.57 6.74 6.52 6.71 6.52 6.33 6.93 6.35 6.65 6.53 6.38 6.24 6.01 6.41 6.17 6.38 6.27 6.30 6.30 6.13 6.65 6.27 6.41 6.38 6.32 6.14 6.05 6.39 6.11 6.21 6.04 6.24 6.47 6.27 6.23 6.42 7.93 6.75 6.42 6.41 6.40 6.47 6.29 ' 6 .8 6 * 6.36 6.27 6.19 6.09 6.35 5.84 6.55 6.29 6.40 6.53 6.32 6.18 7.67 6.82 6.32 6.05 5.99 6.21 6.03 5.75 6.36 6.08 6.82 6.08 6.70 7.29 7.51 7.20 6.67 7.13 6.47 6.89 7.02 7.76 6.62 8.24 6.76 5.78 6.66 7.90 7.88 6.17 6.77 7.06 6.91 6.94 6.98 8.71 8.45 7.06 6.61 6.29 6.73 7.30 8.25 6.76 6.27 Short-term 35 centers......................................... New York C ity.......................... 7 Other Northeast..................... 8 North Central......................... 7 Southeast.................................. 8 Southwest................................. 4 West Coast............................... 6.52 6.22 6.89 6.45 6.76 6.63 6.56 6.33 6.09 6.61 6.27 6.56 6.36 6.41 7.63 7.39 8 .00 7.26 7.73 7.48 7.88 7.52 7.34 7.78 7.22 7.64 7.38 7.79 7.29 7.08 7.53 7.16 7.33 7.16 7.42 7.10 6.79 7.35 6.96 7.15 6.97 7.31 6.83 6.59 7.04 6.83 6.89 6.72 6.82 Revolving credit 35 centers......................................... New York C ity.......................... 7 Other Northeast..................... 8 North Central......................... 7 Southeast.................................. 8 Southwest................................. 4 West C oast.............................. 6 .40 6.53 6.38 6.25 7.24 6.83 6.37 6.11 6.01 6.22 6.12 6.20 6.50 6.14 7.24 7.07 7.51 8.50 6.00 7.65 7.25 6.87 7.51 6.26 8.14 5.97 6.98 7.14 7.03 6.87 7.09 7.14 5.95 7.17 7.13 6.81 6.35 6.92 6.86 6.55 6.76 6.90 6.58 6.56 6.69 6.54 6.41 6.74 6.57 Long-term 35 centers......................................... New York C ity.......................... 7 Other Northeast..................... 8 North Central......................... 7 Southeast.................................. 8 Southwest................................. 4 West Coast.............................. 7.11 6 .90 7.08 7.04 8.29 7.88 7.17 6.67 6.26 6.74 7.35 7.79 6.72 6.38 7.50 6.64 7.28 7.34 7.38 8.20 7.73 7.43 7.14 7.37 6.94 9.67 6.81 7.42 N ote.—Beginning Feb. 1971 the Quarterly Survey o f Interest Rates on Business Loans was revised. For description o f revised series see pp. 46877 o f the June 1971 Bulletin . 7.49 7.00 7.66 7.60 7.05 7.97 7.22 7.15 7.03 7.10 7.09 7.15 7.14 7.44 7.31 7.09 7.49 7.24 8.67 7.37 6.98 MAY 1973 □ INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) Prime commercial paper i Period 90-119 days 4- to 6m onths Finance CO. Prime paper bankers’ placed accept directly, ances, 3- to 6- 90 days 1 m onths2 U.S. G overnment securities4 Fed eral funds ra te 3 3-month bills5 R ate on new issue M arket yield 6-month bills5 R ate on new issue M arket yield 9- to 12-month issues 5 1-year bill (m ar ket yield) O ther 6 3- to 5year issues7 1966. 1967. 1968. 1969. 5.55 5.10 5.90 7.83 5.42 4.89 5.69 7.16 5.36 4.75 5.75 7.61 5.11 4 .22 5.66 8.22 4.881 4.321 5.339 6.677 4.86 4.29 5.34 6.67 5.082 4.630 5.470 6.853 5.06 4.61 5.47 6.86 5.07 4.71 5.46 6.79 5.17 4.84 5.62 7.06 5.16 5.07 5.59 6.85 1970. 1971. 1972. 4 .67 7.72 5.11 4.69 7.23 4.91 4.52 7.31 4.85 4 .47 7.17 4.66 4.44 6.458 4.348 4.071 6.39 4.33 4.07 6.562 4.511 4.466 6.51 4.52 4.49 6.49 4.67 4.7 7 6.90 4.75 4.86 7.37 5.77 5.85 1972—A pr.. M ay. June. J u ly .. Aug.. Sept.. O c t.., N ov.. D e c .. 4.55 4.45 4.60 4.83 4.75 5.07 5.21 5.18 5.40 4.58 4.51 4.64 4.85 4.82 5.14 5.30 5.25 5.45 4.38 4.38 4.45 4.72 4.58 4.91 5.13 5.13 5.24 4.43 4.25 4.47 4.73 4.67 4.84 5.05 5.01 5.16 4.17 4.27 4 .46 4.55 4.80 4.87 5.04 5.06 5.33 3.723 3.648 3.874 4.059 4.014 4.651 4.719 4.774 5.061 3.71 3.69 3.91 3.98 4.02 4.66 4.74 4.78 5.07 4.218 4.064 4.270 4.583 4.527 5.086 5.118 5.079 5.287 4.23 4.12 4.35 4.50 4.55 5.13 5.13 5.09 5.30 4.65 4.46 4.71 4.90 4.90 5.44 5.39 5.20 5.28 4.84 4.58 4.87 4.89 4.91 5.49 5.41 5.22 5.46 6.01 5.69 5.77 5.86 5.92 6.16 6.11 6.03 6.07 1973—Jan ... Feb.. M ar.. A p r.. 5.76 6.17 6.76 7.13 5.78 6.22 6.85 7.14 5.56 5.97 6.45 6.76 5.60 6.14 6.82 6.97 5.94 6.58 7.09 7.12 5.307 5.558 6.054 6.289 5.41 5.60 6.09 6.26 5.527 5.749 6.430 6.525 5.62 5.83 6.51 6.52 5.58 5.93 6.53 6.51 5.78 6.07 6.81 6.79 6.29 6.61 6.85 6.74 Week ending1973—Jan. 6 .. 13.. 2 0 .. 27 .. 5.63 5.63 5.78 5.88 5.63 5.63 5.78 5.90 5.38 5.40 5.53 5.75 5.38 5.43 5.58 5.80 5.61 5.66 5.86 6.03 5.163 5.155 5.277 5.633 5.16 5.19 5.40 5.67 5.396 5.412 5.540 5.760 5.42 5.47 5.63 5.81 5.44 5.45 5.52 5.66 5.61 5.70 5.80 5.91 6.16 6.22 6.27 6.38 Feb. 3 .. 10.. 17.. 2 4.. 6.03 6.13 6.13 6.22 6.10 6.20 6.22 6.25 5.83 5.95 6.00 6.00 5.98 6.13 6.13 6.13 6.35 6.21 6.58 6.79 5.689 5.665 5.424 5.455 5.70 5.56 5.43 5.58 5.871 5.849 5.624 5.653 5.88 5.76 5.60 5.84 5.99 5.86 5.74 5.95 5.96 5.97 5.92 6.16 6.50 6.55 6.53 6.67 M ar. 3.. 10.. 17.. 24.. 31.. 6.28 6.50 6.75 6.95 7.0 0 6.30 6.53 6.85 7.08 7.13 6.05 6.23 6.38 6.60 6.75 6.30 6.65 6.83 7 .00 7 .00 6.75 7.02 7.13 6.96 7.11 5.811 5.879 5.997 6.334 6.251 5.81 5.85 6.05 6.31 6.29 6.045 6.272 6.440 6.759 6.632 6.11 6.29 6.56 6.70 6.67 6.18 6.35 6.56 6.69 6.66 6.39 6.56 6.84 7.02 6.99 6.76 6 .84 6.90 6.91 6.79 Apr. 7., 14. 21. 28. 7.13 7.13 7.13 7.13 7.18 7.13 7.13 7.13 6.78 6.78 6.75 6.75 7.00 6.98 6.88 7.00 7.18 6.84 7.23 7.14 6.531 6.187 6.187 6.251 6.45 6.20 6.16 6.23 6.814 6.268 6.389 6.630 6.68 6.40 6.43 6.56 6.63 6.41 6.42 6.56 6.98 6.77 6.70 6.70 6.77 6.67 6.73 6.79 1 Averages o f the most representative daily offering rate quoted by dealers. 2 Averages o f the m ost representative daily offering rate published by finance companies, for varying maturities in the 90-179 day range. 3 Seven-day average for week ending W ednesday. 4 Except for new bill issues, yields are averages computed from daily closing bid prices. 5 Bills quoted on bank discount rate basis. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. N ote .—F igures for U.S. G overnment securities are the revised series de scribed on p. A-35 o f the Oct. 1972 B ulletin . A 34 INTEREST RATES □ MAY 1973 BOND AND STOCK YIELDS (Per cent per annum) Corporate bonds Government bonds State and local Period United States (long term) Stocks By selected rating A aa utility D ividend/ price ratio By group Earnings/ price ratio Total 1 Total i Aaa Baa New issue R e cently offered Aaa Baa Indus trial R ail road Public utility Pre ferred Com mon Com m on Seasoned issues 4.50 4.57 4.26 4.40 4.86 4.83 4.42 4.52 4.65 4.67 4.41 4.53 4.30 4 .32 3.17 3.01 5 .6 8 5.54 4.51 5.38 5.79 6.47 7.64 4.64 5.34 5.82 6.51 7.36 4.49 5.13 5.51 6.18 7.03 4.87 5.67 6.23 6.94 7.81 4.61 5.30 5.74 6.41 7.22 4.72 5.37 5.89 6.77 7.46 4.60 5.36 5.81 6.49 7.49 4.33 4.97 5.34 5.78 6.41 3.00 3.40 3.20 3.07 3.24 5.87 6.72 5.71 5.6 4 6.08 8.71 7.66 7.34 8.51 7.94 7.63 8.04 7.39 7.21 9.11 8.56 8.16 8.26 7.57 7.35 8.77 8.38 7.99 8.68 8.13 7.74 7.22 6.75 7.27 3.83 3.14 2.84 6.51 5.40 7.45 7.38 7.3 2 7.38 7.37 7.40 7.38 7.09 7.15 7.71 7.71 7.66 7.66 7.61 7.59 7.59 7.52 7.47 7.30 7.30 7.23 7.21 7.19 7.22 7.21 7.12 7.08 8.24 8.23 8.20 8.23 8.19 8.09 8.06 7.99 7.93 7.42 7.43 7.36 7.39 7.35 7.36 7.36 7.28 7.22 8.04 8.01 7.98 8.00 7.99 7.97 7.97 7.95 7.91 7.87 7.88 7.83 7.80 7.69 7.63 7.63 7.55 7.48 6.91 6.90 6.93 6.99 6.90 7.00 7.03 6.93 6.92 2.83 2.88 2.87 2.90 2.80 2.83 2.82 2.73 2.70 5.39 5.44 5.58 5.42 7.38 7.40 7.49 7.46 7.49 7.57 7.62 7.62 7.15 7.22 7.29 7.26 7.90 7.97 8.03 8.09 7.27 7.34 7.43 7.43 7.87 7.92 7.94 7.98 7.51 7.61 7.64 7.64 6.85 6.91 7.03 7.11 2.69 2.80 2.83 2.90 5.00 5.05 5 .10 5 .1 0 5 .10 5.45 5.55 5.65 5.65 5 .60 7.52 7.45 7.57 7.59 7.61 7.63 7.65 7.25 7.27 7.29 7.31 7.31 7.97 7.99 8.01 8.05 8.08 7.35 7.38 7.41 7.46 7.48 7.92 7.94 7.95 7.96 7.94 7.60 7.63 7.64 7.64 7.66 6.92 6.97 7.04 7.06 7.06 2.86 2.79 2.78 2.89 2.87 5.26 5.09 5.13 5.20 5.05 4.85 4.90 5.00 5.50 5.35 5.40 5.45 7.63 7.63 7.62 7.62 7.27 7.25 7.25 7.26 8.11 8.10 8.10 8.05 7.46 7.44 7.42 7.40 7.96 7.98 8.00 8.00 7.65 7.63 7.63 7.63 7.16 7.09 7.11 7.09 2.94 2.84 2.87 2.96 20 5 5 121 20 30 41 30 40 14 196 3 196 4 4.00 4.15 3.28 3.28 3.06 3.09 3.58 3.54 4.21 4 .34 196 196 196 196 196 5 6 7 8 9 4.21 4.66 4.85 5.25 6.10 3.34 3.90 3.99 4.48 5.73 3.16 3.67 3.74 4.20 5.45 3.57 4.21 4 .30 4.88 6.07 4.5 0 5.43 5.82 6.50 7.71 197 0 197 1 197 2 6.59 5.7 4 5.63 6.42 5.62 5.30 6.12 5.22 5.04 6.75 5.89 5.60 8.68 7.62 7.31 1972—Ap r M ay . . . . Ju n e .. . . July. Aug....... S e p t.. . . O ct........ N o v .. . . D ec........ 5.74 5.64 5.59 5.57 5.54 5.70 5.69 5.50 5.63 5.45 5.33 5.35 5.50 5.36 5.38 5.24 5.11 5.13 5.16 5.09 5.07 5.23 5.10 5.12 5.03 4.91 4.91 5.79 5.65 5.72 5.78 5.66 5.69 5.45 5.37 5.39 1973—Ja...........n Feb........ M a r.. . . A pr........ 5.94 6.14 6.20 6.11 5.13 5.17 5.3 0 5.17 4 .90 4.95 5.07 4.95 3. 10. 17. 24. 31. 6.16 6.18 6.22 6.24 6.18 5.23 5.29 5 .34 5.35 5.3 0 7. 14. 21. 28. 6.16 6.09 6.07 6.10 N um ber o f issues2........... 10 7.47 5.57 5.56 Week ending— 1973—M ar. A pr. 7.51 7.45 7.50 7.47 7.52 7.42 1 Includes bonds rated Aa and A, data for which are not shown sep arately. Because o f a limited num ber o f suitable issues, the num ber o f corporate bonds in some groups has varied somewhat. As o f Dec. 23, 1967, there is no longer an Aaa-rated railroad bond series. 2 N um ber o f issues varies over tim e; figures shown reflect most recent count. N o te.—Annual yields are averages o f m onthly or quarterly data. Bonds: M onthly and weekly yields are computed as follows: (1) U.S. Govt.: Averages o f daily figures for bonds maturing or callable in 10 years or more; from Treasury Dept. (2) S ta te and local g o v t.: General obligations 500 only, based on Thurs. figures; from M oody’s Investors Service. (3) Cor p o ra te: New-issue Aaa utility rates are weekly averages compiled by the Board o f Governors of the Federal Reserve System. Rates for seasoned issues are averages o f daily figures from M oody’s Investors Service. Stocks: Standard and P oor’s corporate series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. Preferred stock ratio is based on eight median yields for a sample o f noncallable issues— 12 industrial and 2 public utility; common stock ratios on the 500 stocks in the price index. Q uarterly earnings are seasonally adjusted at annual rates. N otes to tables on opposite page: Security Prices: Terms on M ortgages: 1 Begins June 30, 1965, at 10.90. On that day the average price of a share 1 Fees and charges—related to principal mortgage am ount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude N o te .—Annual data are averages o f monthly figures. M onthly and any closing costs related solely to transfer o f property ownership. weekly data are averages o f daily figures unless otherwise noted and are 2 Series revised beginning Jan. 1973; hence data are not strictly com computed as follows: U.S. Govt, bonds, derived from average market parable with earlier figures. yields in table on p. A-33 on basis o f an assumed 3 per cent, 20-year bond. M unicipal and corporate bonds, derived from average yields as N ote.—Compiled by Federal Home Loan Bank Board in cooperation computed by Standard and P o o r’s Corp., on basis o f a 4 per cent, 20with Federal Deposit Insurance C orporation. D ata are weighted averages year bond; Wed. closing prices. Common stocks, derived from com based on probability sample survey o f characteristics o f mortgages ponent common stock prices. Average daily volume o f trading , normally originated by major institutional lender groups (including mortgage conducted 5 days per week for 5% hours per day, or 27 % hours per week. companies) for purchase o f single-family homes. D ata exclude loans for In recent years shorter days and/or weeks have cut total weekly trading refinancing, reconditioning, or m odernization; construction loans to to the following num ber o f hours: 1967—Aug. 8-20, 20; 1968—Jan. 22homebuilders; and perm anent loans th at are coupled with construction M ar. 1,20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31loans to owner-builders. Series beginning 1965, not strictly comparable 22.5; 1970—Jan. 2-M ay 1, 25. with earlier data. See also the table on Home-M ortgage Yields, p. A-5 3 MAY 1973 □ SECURITY MARKETS A 35 SECURITY PRICES Com m on stock prices Bond prices (per cent o f par) New York Stock Exchange Period Standard and P oor’s index (1941-43= 10) U.S. Govt. (long term) State and local C or porate AAA 1963............................ 1964............................ 86.31 84.46 111.3 111.5 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 83.76 78.63 76.55 72.33 64.49 1970............................ 1971............................ 1972............................ Amer ican Stock New York Stock Exchange index (Dec. 31, 1965 = 50) Trans porta tion Total Indus trial Rail road Public utility 96.8 95.1 69.87 81.37 73.39 86.19 37 58 45 46 64.99 69.91 110.6 102.6 100.5 93.5 79.0 93.9 86.1 81.8 76.4 68.5 88.17 93.48 85.26 91.09 91.93 99.18 98.70 107.49 97.84 107.13 46 78 46.34 46.72 48.84 45.95 76.08 68.21 68.10 66.42 62.64 44.16 50.77 55.37 54.67 43.79 51.97 58.00 57.45 48.23 53.51 50.58 46.96 44.77 45.43 44.19 42.80 60.52 67.73 68.71 72.3 80.0 84.4 61.6 65.0 65.9 83.22 91.29 98.29 108.35 109.20 121.79 32.13 41.94 44.11 54.48 59.33 56.90 45.72 54.22 60.29 48.03 57.92 65.73 32.14 44.35 50.17 1972—A pr................. M a y ............... Ju n e ............... July................. Aug................. Sept................ O ct.................. N ov................ D ec................. 67.66 68.59 69.05 69.23 69.55 68.06 68.09 69.87 68.68 82.5 84.6 83.4 83.1 84.2 83.4 85.3 87.1 87.1 65.1 108.81 121.34 65.3 107.65 120.16 65.6 108.01 120.84 65.6 107.21 119.98 65.8 111.01 124.35 65.6 109.39 122.33 65.5 109.56 122.39 65.9 115.05 128.29 66.05 117.50 131.08 47.38 45.06 43.66 42.00 43.28 42.37 41.20 42.41 45.23 55.70 54.94 53.73 53.47 54.66 55.36 56.66 61.16 61.73 60.65 59.82 59.87 59.21 61.07 60.05 59.99 62.99 64.26 66.10 65.30 65.76 65.13 67.25 65.72 65.35 68.29 69.96 1973—Jan.................. F eb................. M ar................ A p r................. 65.89 64.09 63.59 64.39 86.9 86.1 84.1 85.7 66.0 65.5 65.2 64.9 118.42 132.55 114.16 128.50 112.42 126.05 110.27 123.56 42.87 40.80 39.29 35.88 60.01 57.52 55.94 55.34 64.38 61.52 60.15 58.67 63.95 64.56 64.70 64.44 84.8 86.2 86.0 85.9 65.0 109.20 122.31 65.0 112.08 125.70 64.9 111.52 124.99 64.7 109.20 122.32 39.18 39.56 39.26 37.94 54.89 55.58 55.82 55.26 58.26 59.65 59.29 57.97 Total Indus trial Utility Fi nance Volume of trading in stocks (thousands of shares) change total indexi NYSE A M EX 8.52 9.81 4,573 ■4*888 1,269 11570 44.43 49.82 65.85 70.49 12.05 6,174 14.67 7,538 19.67 10,143 27.72 12,971 28.73 11,403 2,120 2*752 4,508 6,353 5,001 37.24 39.53 38.48 54.64 70.38 78.35 22.59 10,532 25.22 17,429 27.00 16,487 3,376 4,234 4,447 55.50 53.43 51.26 48.45 48.97 46.49 44.95 47.50 48.44 37.48 37.04 36.32 36.02 36.87 37.82 38.93 41.81 42.28 80.36 78.32 76.59 75.41 78.27 78.41 79.64 84.57 83.45 28.24 18,402 27.63 15,270 27.47 14,298 26.97 14,450 26.85 15,522 25.23 12,314 25.87 14,427 26.18 20,282 26.50 18,146 5,584 4,184 3,872 3,546 3,807 2,774 3,014 4,286 4,775 70.55 67.67 66.20 64.41 45.14 42.34 40.92 40.57 41.72 39.95 39.13 38.97 81.62 74.47 72.32 69.42 25.35 25.34 24.59 24.02 18,752 16,753 15,564 13,900 4,046 3,690 2,966 2,981 63.95 65.57 65.10 63.63 40.58 41.92 41.48 39.07 38.50 39.16 39.45 38.95 69.76 70.90 69.81 67.98 24.16 24.17 24.08 23.77 12,415 15,235 13,157 14,461 2,889 3,103 2,692 3,159 W eek ending— 1973—Apr. 7 14, .. 21, .. , 2 8 ......... F or notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Period Con tract rate (per cent) Fees & charges (per cent) 1 M aturity (years) Loan/ price ratio (per cent) Existing homes Pur Loan chase amount price (thous. (thous. o f dollars)o f dollars) Con tract rate (per cent) Fees & charges (per cent) i M aturity (years) L oan/ price ratio (per cent) Pur Loan chase am ount price (thous. of (thous. o f dollars) dollars) 1965.......................... 1966.......................... 1967.......................... 1968.......................... 1969.......................... 5 .7 4 6.14 6.33 6.83 7.66 .49 .71 .81 .89 .91 2 5.0 24.7 2 5.2 25.5 25.5 73.9 73.0 7 3.6 73.9 72.8 25.1 2 6.6 28.0 30.7 34.1 18.3 19.2 20.4 22.4 24.5 5.87 6.30 6.40 6.90 7.68 .55 .72 .76 .83 .88 21.8 21.7 22.5 22.7 22.7 72.7 72.0 72.7 73.0 71.5 21.6 22.2 24.1 25.6 28.3 15.6 15.9 17.4 18.5 19.9 1970.......................... 1971.......................... 1972......................... 8.27 7.60 7.45 1.03 .87 .88 25.1 26.2 27.2 71.7 74.3 76.8 35.5 36.3 37.3 25.2 26.5 28.1 8.20 7.54 7.38 .92 .77 .81 22.8 24.2 2 5.7 71.1 73.9 76.0 30.0 31.7 33.4 21.0 23.1 25.0 1972— M ar.............. M ay............. Jun e............. July .............. Aug.............. Sept.............. O ct............... N ov.............. D ec............... 7.38 7.38 7.40 7.41 7.43 7.45 7.43 7.48 7.50 7.51 .84 .83 .84 .85 .83 .86 .86 .88 .90 .92 27.2 27.2 27.2 27.2 27.2 27.5 27.3 27.2 27.5 27.5 76.2 76.0 76.2 76.5 77.0 77.5 77.5 77.3 77.4 78.0 37.7 38.3 38.2 37.2 37.3 36.8 36.6 36.0 37.1 37.9 28.2 28.5 28.5 27.8 28.2 27.9 27.9 27.4 28.1 29.0 7.31 7.30 7.33 7.36 7.37 7.39 7.42 7.43 7.44 7.45 .77 .78 .77 .78 .83 .81 .83 .84 .83 .86 25.1 25.2 25.2 25.5 25.6 26.3 26.2 26.1 26.2 26.4 75.6 75.3 7 5.4 76.1 76.2 76.5 76.5 76.3 76.7 76.8 32.7 33.6 33.3 33.8 33.8 33.7 32.9 33.3 33.7 34.0 24.4 24.9 24.6 25.2 25.2 25.4 24.8 25.0 25.3 25.7 1973—Jan. 2 ........... F e b .r ........... M ar.............. 7.52 7.52 7.52 1.03 1.15 1.09 25.7 26.8 26.9 76.6 78.6 78.5 35.8 35.9 35.7 27.0 27.6 27.5 7.53 7.55 7.53 .94 1.03 1.00 23.2 23.6 23.9 75.2 77.5 77.2 30.5 29.2 29.5 22.6 22.0 22.4 For notes see opposite page. A 36 STOCK MARKET CREDIT □ MAY 1973 STOCK MARKET CUSTOMER FINANCING (In millions o f dollars) M argin credit at brokers and banks 1 Regulated 2 Unregu lated 3 By type By source End o f period M argin stock Total Convertible bonds Subscription issues Brokers Banks O ther security credit at banks 4 Free credit balances at brokers 5 Nonm argin stock credit at banks Brokers Banks Brokers Banks Brokers Banks M argin accts. Cash accts. 1972—M ar............... 7,847 A pr............... 8,250 M ay ............. 8,472 Ju n e ............. 8,747 July............... 8,924 Aug............... 9,092 Sept............... 9,091 O ct................ 9,024 N ov.............. 9,068 D ec............... 9,045 6,896 7,283 7,478 7,792 7,945 8,060 8,083 8,081 8,166 8,180 951 967 994 955 979 1,032 1,008 943 902 865 6,620 7,010 7,200 7,510 7,660 7,780 7,800 7,800 7,890 7,900 883 898 924 889 910 961 937 872 831 798 240 240 241 244 248 246 248 250 249 254 53 57 58 51 53 54 54 53 52 50 36 33 37 38 37 34 35 31 27 26 15 12 12 15 16 17 17 18 19 17 1,158 1,150 1,141 1,644 1,772 1,800 1,871 1,875 1,871 1,896 1,294 1,278 1,296 1,274 1,285 1,298 1,255 1,351 1,396 1,528 442 433 403 386 403 384 380 389 390 414 2,070 2,030 1,930 1,845 1,842 1,733 1,677 1,708 1,828 1,957 1973—Jan ................ 8,840 Feb................ '8 ,6 2 0 M ar............... 8,344 7,975 7,753 7,465 865 '867 879 7,700 7,480 7,197 796 '800 813 249 248 244 48 '50 48 26 25 24 21 '17 18 1,940 '1,9 5 4 1,917 1,484 1,508 1,566 413 431 442 1,883 1,770 1,719 1 M argin credit includes all credit extended to purchase or carry stocks or related equity instruments and secured at least in part by stock (see Dec. 1970 Bulletin ). C redit extended by brokers is end-of-month data for m ember firms o f the N YSE. June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent o f security credit outstanding at banks on June 30, 1971. 2 In addition to assigning a current loan value to m argin stock generally, Regulations T and U perm it special loan values for convertible bonds and stock acquired through exercise o f subscription rights. 3 N onm argin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are un regulated; at brokers, such stocks have no loan value. 4 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral (see Dec. 1970 Bulletin ). 5 Free credit balances are in accounts with no unfulfilled com m itm ents to the brokers and are subject to withdrawal by customers on dem and. EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent o f total debt, except as noted) (Per cent o f total, except as noted) End o f period Total debt (mil lions of dol lars) 1 1972— M ar.. A p r .. M ay. June. J u ly .. Aug.. Sept.. O c t... N ov.. D e c .. Equity class (per cent) End o f period 80 or m ore 70-79 60-69 50 -5 9 40-49 U nder 40 6,620 7,010 7,200 7,510 7,660 7,780 7,800 7,800 7,890 7,900 7 .6 7.1 6.9 6 .0 5.5 5 .9 5.5 5 .5 6 .0 6.5 11.2 10.2 9 .9 9.1 8 .3 8 .6 8 .0 8.1 9 .4 8 .6 22.3 19.5 19.3 15.9 14.6 15.0 13.8 13.6 16.6 17.6 38.5 4 0 .0 38.6 33.9 30.8 33.6 31.4 30.8 35.1 10.6 12.8 15.0 2 2 .0 24.9 22 .4 24.9 25 .0 20.5 9 .7 10.5 10.4 13.2 15.7 14.6 16.4 17.0 12.4 15.0 1973—J a n . . 7,700 F e b .. 7,480 M ar.. 7,200 5 .8 5.3 5 .7 8 .2 7.8 7 .5 16.8 14.7 15.9 3 1 .9 2 0 .3 2 7 .8 2 1 .2 23.9 23.1 22.5 22.7 20.0 25.6 25.1 1 See note 1 to table above. N o t e . —Each custom er’s equity in his collateral (market value of col lateral less net debit balance) is expressed as a percentage o f current col lateral values. N et credit status Equity class o f accounts in debit status Total balance (millions 60 per cent Less than o f dollars or more 60 per cent 1972—M ar........................ 35.8 35.5 34.7 34.3 34.4 33.4 33.7 33.3 33.6 34.4 5 6.0 56.5 57.1 56.3 55.2 55.2 53.8 53.4 54.5 52.9 8.1 8 .0 8 .0 9 .4 11.4 11.4 12.5 13.3 11.8 12.7 5,990 5,920 5,860 5,770 5,930 5,990 6,000 5,950 6,140 6,100 1973—J a n ......................... 35.1 35.8 36.3 51.7 49.8 47.9 13.1 14.4 15.7 5,850 5,770 5,790 N o t e . —Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values o f other collateral in the custom er’s margin account or deposits o f cash (usually sales proceeds) occur. MAY 1973 a SAVINGS IN S TITU TIO N S A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans End o f period M ort gage Other Securities U.S. G ovt. State and local govt. Cash C orpo rate and o th e r1 O ther assets Total assets— Total liabili ties and general reserve accts. Depos its 2 M ortgage loan commitments 3 classified by m aturity (in m onths) Other General liabili reserve ac ties counts 3 or less 3-6 6-9 Over 9 Total 1963................. 36,007 1964................. 40,328 1965................. 44,433 1966................. 47,193 607 739 862 1,078 5,863 5,791 5,485 4,764 440 391 320 251 5,074 5,099 5,170 5,719 912 1,004 1,017 953 799 886 944 1,024 49,702 54,238 58,232 60,982 44,606 48,849 52,443 55,006 943 989 1,124 1,114 4,153 4,400 4,665 4,863 1967................. 1968................. 1969................. 1970................. 1971................ 1972................. 50,311 53,286 55,781 57,775 62,069 67,563 1,203 1,407 1,824 2,255 2,808 2,979 4,319 3,834 3,296 3,151 3,334 3,510 219 194 200 197 385 873 8,183 10,180 10,824 12,876 17,674 21,906 993 996 912 1,270 1,389 1,644 1,138 66,365 1,256 71,152 1,307 74,144 1,471 78,995 89,369 1,711 2,117 100,593 60,121 64,507 67,026 71,580 81,440 91,613 1,260 1,372 1,588 1,690 1,810 2,024 4,984 5,273 5,530 5,726 6,118 6,956 742 811 584 619 1,047 1,593 982 1,034 485 322 627 713 799 2,523 1,166 3,011 452 946 2,467 302 688 1,931 463 1,310 3,447 609 1,624 4,539 1972—Jan .4 .. F e b .... M a r ... A pr.. . . M a y ... J u n e ... July. .. A u g .. . S ep t.. . O ct.. . . N o v .. . D ec.. . . 62,258 62,517 62,947 63,299 63,753 64,333 64,771 65,324 65,826 66,298 66,815 67,563 3,224 3,523 3,660 3,452 3,499 3,439 3,642 3,512 3,421 3,481 3,503 2,979 3,261 3,306 3,380 3,425 3,450 3,397 3,376 3,353 3,393 3,451 3,419 3,510 433 459 515 548 598 642 691 806 843 866 894 873 18,417 19,055 19,659 20,192 20,615 20,857 21,193 21,389 21,556 21,497 21,648 21,906 1,246 1,255 1,256 1,239 1,238 1,332 1,298 1,327 1,361 1,303 1,321 1,644 1,802 1,808 1,852 1,868 1,881 1,948 1,945 1,935 1,992 1,986 1,996 2,117 90,641 91,924 93,268 94,022 95,035 95,947 96,916 97,646 98,392 98,882 99,595 100,593 82,327 83,269 84,809 85,299 85,976 87,027 87,714 88,130 89,174 89,558 90,112 91,613 1,962 2,229 1,991 2,231 2,493 2,254 2,536 2,780 2,431 2,518 2,610 2,024 6,352 6,427 6,468 6,492 6,565 6,667 6,665 6,736 6,787 6,806 6,873 6,956 1,045 1,277 1,448 1,720 1,654 1,612 1,579 1,572 1,740 1,667 1,624 1,593 676 759 769 747 778 925 956 824 716 718 753 713 409 533 681 742 737 540 557 549 583 617 631 609 1973—F e b .... 68,352 4,030 3,419 986 22,389 1,331 2,070 102,577 92,949 2,540 7,088 1,729 862 732 1,480 4,803 1 Also includes securities o f foreign governments and international organizations and nonguaranteed issues o f U.S. Govt, agencies. 2 Beginning with data for June 30, 1966, about $1.1 billion in “ Deposits accumulated for payment o f personal loans” were excluded from “ Time deposits” and deducted from “ Loans” at all commercial banks. These changes resulted from a change in Federal Reserve regulations. See table (and notes), D eposits Accum ulated fo r Paym ent o f Personal Loans , p. A-30. 3 Commitments outstanding o f banks in New York State as reported to the Savings Banks Assn. o f the State of New York. D ata include building loans beginning with Aug. 1967. 2,549 2,820 2,697 2,010 1,442 1,414 1,429 1,437 1,591 1,603 1,629 1,647 1,637 1,660 1,658 1,624 3,572 3,983 4,327 4,646 4,760 4,679 4,721 4,593 4,675 4,662 4,666 4,539 4 Balance sheet data beginning Jan. 1972 are reported on a gross o f valuation reserves basis. The data differ somewhat from balance sheet data previously reported by N ational Assn. o f M utual Savings Banks which were net o f valuation reserves. F or most items, however, the dif ferences are relatively small. N ote.—NAMSB data; figures are estimates for all savings banks in the United States and differ somewhat from those shown elsewhere in the B ulletin ; the latter are for call dates and are based on reports filed with U.S. Govt, and State bank supervisory agencies. LIFE INSURAN< ; e c o m p a n ie s (In millions of dollars) Business securities G overnm ent securities End o f period Total assets Total United State and Foreign 1 States local Total Bonds Stocks M ort gages Real estate Policy loans O ther assets Statement value: 1963 , 1964 , 1965., 1966.. 1967, 1968. 141,121 149,470 158,884 167,022 177,832 188,636 12,438 12,322 11,679 10,837 10,573 10,509 5,813 5,594 5,119 4,823 4,683 4,456 3,852 3,774 3,530 3,114 3,145 3,194 2,773 2,954 3,030 2,900 2,754 2,859 60,780 63,579 67,599 69,816 76,070 82,127 53,645 55,641 58,473 61,061 65,193 68,897 7,135 7,938 9,126 8,755 10,877 13,230 50,544 55,152 60,013 64,609 67,516 69,973 4,319 4,528 4,681 4,883 5,187 5,571 6,655 7,140 7,678 9,117 10,059 11,306 6,385 6,749 7,234 7,760 8,427 9,150 Book value: 1966.. 1967., 1968. 1969. 1970. 1971. 1972* 167,022 177,361 188,636 197,208 207,254 222,102 239,407 10,864 10,530 10,760 10,914 11,068 11,000 11,080 4,824 4,587 4,456 4,514 4,574 4,455 4,333 3,131 2,993 3,206 3,221 3,306 3,363 3,522 2,909 68,677 2,950 73,997 3,098 79,653 3,179 84,566 3,188 88,518 3,182 99,805 3,406 112,980 61,141 65,015 68,731 70,859 73,098 79,198 86,605 7,536 8,982 10,922 13,707 15,420 20,607 26,375 64,661 67,575 70,044 72,027 74,375 75,496 77,319 4,888 5,188 5,575 5,912 6,320 6,904 7,310 9,911 10,060 11,305 13,825 16,064 17,065 17,998 8,801 11,011 11,299 9,964 10,909 11,832 12,720 223,768 F eb.................................. 224,736 M ar................................. 226,024 A pr.................................. 227,893 M ay ................................ 229,336 Ju n e................................ 230,182 Ju ly ................................. 231,586 Aug................................. 233,337 Sept................................. 234,455 Oct.................................. 235,972 Nov................................. 237,971 D ec................................. 239,407 11,102 11,341 11,517 11,083 11,128 11,105 11,075 11,086 11,125 11,132 11,193 11,080 4,546 4,609 4,744 4,476 4,516 4,394 4,372 4,389 4,385 4,396 4,459 4,333 3,366 3,535 3,532 3,373 3,366 3,355 3,356 3,351 3,350 3,347 3,356 3,522 3,190 3,197 3.241 3,234 3,246 3,356 3,347 3,346 3,390 3,389 3,378 3,406 101,734 102,821 103,798 105,249 106,434 107,074 108,236 109,728 110,300 111,616 113,066 112,980 80,487 80,795 81,099 82,293 83,060 83,382 84,539 >5,187 85,912 86,874 87,425 86,605 21,247 22,026 22,699 22,956 23,374 23,692 23,697 24,541 24,388 24,742 25,641 26,375 75,493 75,456 75,424 75,469 75,493 75,547 75,626 75,723 75,813 75,952 76,207 77,319 6,932 6,999 7,048 7,034 7,094 7,149 7,185 7,235 7,245 7,229 7,272 7,310 17,130 17,132 17,212 17,360 17,441 17,528 17,605 17,689 17,773 17,854 17,922 17,998 11,377 10,987 11,025 11,698 11,746 11,779 11,859 11,876 12,199 12,189 12,311 12,720 241,022 11,191 4,389 3,358 3,444 114,526 88,371 26,155 77,481 7,366 18,080 12,378 197 3 - Figures are annual statement asset values, with bonds carried on an 1 Issues o f foreign governments and their subdivisions and bonds of the International Bank for Reconstruction and Development. amortized basis and stocks at year-end m arket value. Adjustments for interest due and accrued and for differences between m arket and book N ote.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included in total, in companies in the United States. “Other assets.” A 38 SAVINGS IN S TITU TIO N S □ MAY 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) M ort gages Invest ment secur ities 1 196 1 196 2 196 3 196 4 196 5 196 6 196 7 196 8 1969 5........... 1970 5............ 68,834 78,770 90,944 101,333 110,306 114,427 121,805 130,802 140,232 150,331 5,211 5,563 6,445 6,966 7,414 7,762 9,180 1 11,116 10,873 13,020 1971—D e c ... 174,385 18,293 1972—J a n .... Feb.. . M a r... A p r... M a y .. J u n e .. Ju ly ... A u g ... Sept... O c t.. . N o v ... Dec. ^ 175,838 177,614 180,145 182,711 185,431 188,884 191,642 194,955 197,881 200,554 203,266 206,387 19,691 20,682 21,427 21,449 22,070 21,644 22,130 22,113 22,018 22,390 22,505 *21,821 End o f period M ortgage loan com m itm ents4 Liabilities Assets O ther2 Total assets— Total liabilities 4,775 5,346 6,191 7,041 7,960 8,378 9,107 9,571 8,606 9,326 2,783 2,785 2,829 2,521 2,551 2,456 2,414 2.367 2,208 2,084 2,258 2,245 *2,670 Cash Savings capital Reserves and un divided profits Bor rowed money 3 82,135 93,605 107,559 119,355 129,580 133,933 143,534 152,890 162,149 176,183 70,885 80,236 91,308 101,887 110,385 113,969 124,531 131,618 135,538 146,404 5,708 6,520 7,209 7,899 8,704 9,096 9,546 10,315 11,228 11,991 2,856 3,629 5,015 5,601 6,444 7,462 4,738 5,705 9,728 10,911 10,842 206,303 174,472 13,187 9,048 5,072 4,524 2,345 7,237 10,926 11,144 11,291 11,440 11,691 11,865 11,942 12,125 12,277 12,457 12,689 12,693 209,240 212,269 215,384 218,151 221,648 224,807 228,081 231,401 234,260 237,659 240,705 243,571 177,738 180,556 184,843 186,617 188,826 192,564 194,770 196,571 199,966 202,012 203,889 207,305 13,250 13,248 13.261 13.262 13,257 13,583 13,577 13,569 13.586 13.587 13,592 *14,740 8,053 7,275 6,759 6.847 6,802 7,273 7,216 7,512 8,080 8,327 8,503 9.847 4,874 4,853 5,077 5,283 5,608 5,887 5,997 6,100 6,119 6,086 6,067 6,225 5,325 6,337 5,444 6,142 7,155 5.500 6,521 7,649 6,509 7,647 8,654 *5,454 2,508 3,354 4,110 4,047 4,545 4,198 c4,205 4,106 3,767 3,731 3,777 3,169 7,510 8,659 9,864 10,837 11,793 11,663 11,878 11,876 11,908 11,959 12,007 11,333 3,315 3,926 3,979 4,015 3,900 3.366 3,442 2,962 2,438 3,506 ^ Table is not being updated in this issue pending changes in composi tion o f component items expected to be shown in the B ulletin for June. 1 U.S. Govt, securities only through 1967. Beginning 1968 the total reflects liquid assets and other investment securities. Included are U.S. Govt, obligations, Federal agency securities, State and local govt, securi ties, time deposits at banks, and miscellaneous securities, except FHLBB stock. Compensating changes have been made in “ Other assets.” 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings and fixtures. See also note 1. 3 Consists o f advances from FHLBB and other borrowing. Loans O ther 1,550 1,999 2,528 2,239 2,198 1,270 2,257 2,449 2,455 3,078 1.136 1,221 1.499 1,729 1,849 2.136 2,462 2,803 3,200 3,799 O utstand ing at end of period M ade during period 807 1,602 1,872 2,193 2,572 2,549 2,707 1,482 3,004 3,584 2,812 4,393 4 Insured savings and loan assns. only. D ata on outstanding commit ments are comparable with those shown for mutual savings banks (on preceding page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. 5 Balance sheet data for all operating savings and loan associations were revised by the FHLBB for 1969 and 1970. N ote.—FHLBB data; figures are estimates for all savings and loan assns. in the United States. D ata are based on monthly reports of insured assns. and annual reports of noninsured assns. D ata for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Liabilities and capital Assets End of period Cash and de posits M em ber de posits Deben tures and notes (L) Loans to cooper atives (A) Deben tures 1,395 1,402 1,478 1,607 1,618 5,348 6,872 10,541 15,502 17,791 4,919 6,376 10,511 15,206 17,701 2,008 1,762 1,789 1,746 1,497 1,442 1,444 1,334 1,380 1,548 1,708 1,717 1,718 1,721 1,722 1,724 1,729 1,735 1,741 1,756 18,342 18,403 18,598 18,628 18,740 19,021 19,295 19,438 19,619 19,791 1,306 1,323 1,291 1,821 1,891 1,943 19,980 20,181 20,571 Invest ments 4,386 5,259 9,289 10,614 7,936 2,598 2,375 1,862 3,864 2,520 127 126 124 105 142 4,060 4,701 8,422 10,183 7,139 1,432 1,383 1,041 2,332 1,789 1972-- M a r . . A p r... M a y .. J u n e .. J u ly .. A ug... Sept... O c t... N o v .. D ec... 5,992 5,913 5,853 6,075 6,138 6,294 6,736 7,045 7,245 7,979 4,342 4,233 4,067 3,850 3,579 3,319 2,184 2,591 2,850 2,225 113 81 108 118 118 118 106 83 107 129 6,730 6,729 6,528 6,527 6,526 6,531 6,531 6,531 6,971 6,971 1973-—J a n .. . F eb ... M a r .. 7,831 7,944 8,420 2,264 2,421 1,938 91 106 108 6,971 7,220 7,220 1967, 1968. 1969. 1970. 1971. Capital stock N ote.—D ata from Federal Home Loan Bank Board, Federal National Mortgage Assn., and Farm Credit Admin. Among omitted balance sheet items are capital accounts o f all agencies, except for stock o f FH LB ’s. Bonds, debentures, and notes are valued at par. They include only publicly Banks for cooperatives M ort gage loans (A) A d vances to mem bers Bonds and notes Federal National Mortgage Assn. (secondary market operations) Federal intermediate credit banks Deben tures (L) Loans and dis counts (A) 1,506 1,577 1,732 2,030 2,076 1,253 1,334 1,473 1,755 1,801 17,992 18,131 17,959 18,560 18,194 18,194 18,939 18,724 19,041 19,238 2,267 2,260 2,181 2,145 2,137 2,156 2,233 2,355 2,313 2,298 19,252 19,402 19,985 2,876 2,936 2,896 Federal land banks Bonds (L) M ort gage loans (A) 3,411 3,654 4,275 4,974 5,669 3,214 3,570 4,116 4,799 5,503 5,609 6,126 6,714 7,186 7,917 4,904 5,399 5,949 6,395 7,063 1,840 1,833 1,852 1,786 1,731 1,710 1,710 1,837 1,905 1,944 5,967 6,105 6,229 6,378 6,330 6,255 6,201 6,110 6,048 6,094 5,689 5,879 6,018 6,118 6,174 6,148 6,063 5,952 5,872 5,804 8,139 8,238 8,343 8,430 8,517 8,631 8,749 8,857 8,972 9,107 7,186 7,382 7,382 7,382 7,659 7,659 7,798 8,012 8,012 8,012 1,950 2,188 2,188 6,087 6,179 6,414 5,891 5,969 6,076 9,251 9,387 9,591 8,280 8,280 8,280 (L) offered securities (excluding, for FH LB ’s bonds held within the FH LB System) and are not guaranteed by the U.S. G ovt.; for a listing of these securities, see table on opposite page. Loans are gross of valuation reserves and represent cost for FN M A and unpaid principal for other agencies. MAY 1973 o FEDERALLY SPONSORED CREDIT AGENC A ISSUES OF FEDERALLY SPONSORED AGENCIES, MARCH 31, 197 Amount (millions o f dollars) 400 450 600 300 250 300 300 700 180 400 225 250 265 300 350 400 300 200 300 350 200 200 150 200 350 140 150 150 1,435 250 200 249 250 250 200 146 350 550 300 Agency, and date o f issue and maturity Cou pon rate Amount (millions o f dollars) Federal National Mortgage Association—Cont. Debentures: 6/10/71 -9 /1 0 /7 3 ......... 12/10/70 - 12/10/73. . 8/10/71 - 1 2 /1 0 /7 3 .... 12/11/72 - 12/10/73 .. 12/1/71 - 3/11/74___ 4/10/70 - 3/11/74___ 8/5/70 - 6/10/74........ 11/10/71 - 6 / 1 0 / 7 4 .... 9/10/69 - 9 /1 0 /7 4 .... 2/10/71 - 9/10/74......... 5/10/71 - 1 2 /1 0 /7 4 .... 9/10/71 - 1 2 /1 0 /7 4 .... 11/10/70 - 3 /1 0 /7 5 ... 10/12/71 - 3 /1 0 /7 5 ... 4/12/71 -6 /1 0 /7 5 ......... 10/13/70 - 9 /1 0 /7 5 ... 3/12/73 -9 /1 0 /7 5 ......... 3/10/72 - 1 2 /1 0 /7 5 ... 3/11/71 - 3/10/76......... 6/10/71 -6 /1 0 /7 6 ......... 2/10/72 - 6/10/76......... 11/10/71 - 9 /1 0 / 7 6 .... 6 /1 2 /7 2 -9 /1 0 /7 6 ......... 7/12/71 - 1 2 /1 0 /7 6 .... 12/11/72- 12/10/76... 2/13/62 - 2/10/77. 9 /1 1 /7 2 - 3/10/77......... 12/10/70 - 6/10/77. . . 5/10/71 -6 /1 0 /7 7 ......... 9/10/71 -9 /1 2 /7 7 ......... 10/12/71 - 12/11/78.. 6 /1 2 /7 2 -9 /1 0 /7 9 ......... 12/10/71 - 12/10/79.. 2/10/72 - 3/10/80......... 2/16/73 - 7/31/80......... 2/16/73 - 7/31/80........ 1/16/73 - 1 0 /3 0 /8 0 .... 12/11/72- 12/10/80... 3/14/73 - 1/15/81......... 3/14/73 - 1/15/81......... 6/29/72 - 1/29/81......... 3/12/73 - 3/10/81......... 3/21/73 - 5/1/81........... 3/12/73 - 5/1/81........... 1/21/71 - 6/10/81____ 9 /1 0 /7 1 -9 /1 0 /8 1 ........ 6 /2 8 /7 2 -5 /1 /8 2 ............ 2/10/71 - 6/10/82......... 9 /1 1 /7 2 -9 /1 0 /8 2 ......... 3/11/71 -6 /1 0 /8 3 ......... 11/10/71 - 9 / 1 2 / 8 3 .... 4/12/71 -6 /1 1 /8 4 ......... 12/10/71 - 12/10/84. . , 3/10/72 - 3 /1 0 /9 2 .... 6 /1 2 /7 2 -6 /1 0 /9 2 ......... 6.13 5.75 7.15 350 500 500 5.45 7.75 7.90 5.70 7.85 5.65 400 350 400 350 250 300 250 450 300 600 500 350 650 500 500 250 450 300 500 300 500 198 500 250 150 300 300 300 350 250 6.00 6.10 6.45 7.55 6.35 5.25 7.50 6.80 5.70 5.65 6.70 5.85 6.13 5.85 7.45 6.25 41/2 6.30 6.38 6.50 6.88 6.75 6.40 6.55 6.88 5.19 3.18 5.47 6.60 3.58 5.48 6.15 7.05 4 .50 5.77 7.25 7.25 5.84 6.65 6.80 6.75 6.75 6.25 6.90 7.00 7.05 200 1 9 5 300 53 6 156 350 18 2 250 250 58 250 200 200 250 200 250 200 200 mou lillio; dolla Agency, and date o f issue and maturity Banks for cooperatives Debentures: 1 0 /2 /7 2 -4 /2 /7 3 ... 1 1 /1 /7 2 - 5 /1 /7 3 ... 12/4/72 - 6 /4 /7 3 ... 1/2/73 - 7 /2 /7 3 .... 2/1/73 - 8 /1 /7 3 .... 10/1/70 - 10/1/73. 5.40 5.45 5.30 5.60 5.95 7.30 380 336 360 443 569 100 credit banks Debentures: 7/3/72 - 4/2/73. 8 /1 /7 2 - 5/1/73.. 9 /5 /7 2 -6 /4 /7 3 .. 10/2/72- 7/2/73. 9 /1 /7 0 - 7 /2 /7 3 .. 1 1 /1 /7 2 -8 /1 /7 3 . 12/4/72 - 9/4/73. 1/2/73 - 10/1/73. 2/1/73 - 11/1/73. 3/1/73 - 12/3/73. 7/1/71 - 1/2/74.. 1/4/71 - 7/1/74. 5/1/72 - 1/2/75.. 1 /3 /7 2 -7 /1 /7 5 . . 3/1/73 - 1/5/76. . 4.80 5.05 5.00 5.60 5.55 5.65 5.45 5.70 6.00 6.15 6.85 5.95 6.05 5.70 6.65 489 563 508 373 200 540 491 591 544 529 212 224 240 302 261 4K 5.20 8.45 7.95 7.80 5.80 5.55 148 433 198 350 300 462 450 155 354 350 326 300 220 200 425 300 300 123 373 150 300 150 269 285 235 400 300 224 200 1 Bonds: 2/20/63 - 2/20/73-78. 4 /2 0 /7 2 -4 /2 3 /7 3 ......... 1/20/70 - 7/20/73___ 8/20/73 - 7/20/73........ 4/20/70 - 1 0 /2 2 /7 3 ... 10/23/72- 10/23/73... 7/20/72 - 1/21/74___ 2/20/72 - 2 /2 0 /7 4 .... 10/20/70 - 4/22/74. . . 9 /1 5 /7 2 -4 /2 2 /7 4 ......... 10/21/71 - 7 /2 7 /7 4 ... 4/20/71 - 1 0 /2 1 /7 4 .... 2/20/70 - 1/20/75___ 4/20/65 - 4 /2 1 /7 5 .... 2 /1 5 /7 2 -7 /2 1 /7 5 ......... 7/20/71 - 1 0 /2 0 /7 5 .... 4/20/72 - 1/20/76......... 2/21/66 - 2 /2 4 /7 6 .... 1/22/73 - 4/20/76......... 7/20/66 - 7 /2 0 /7 6 .... 10/27/71 - 10/20/77.. 5/2/66 - 4/20/78......... 7/20/72 - 7/20/78 2 /2 0 /6 7 - 1/22/79......... 9 /1 5 /7 2 -4 /2 3 /7 9 ......... 10/23/72- 10/23/79... 1/22/73 - 1/21/80......... 2/23/71 -4 /2 0 /8 1 ......... 4/20/72 - 4/20/82......... by the U.S. G ovt.; see also note to table at bottom of opposite page. 7.30 5.85 5.85 5.3 0 5.70 7.20 6^ 5.00 6% 5H 6.35 5^ 6.40 5.00 6.85 6.80 6.70 6.70 6.90 FEDERAL FINANCE □ MAY 1973 A 40 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) Means of financing U.S. budget Period N et ex pendi tures Budget receipts Less: Cash and monetary assets Borrowings from the public : Receipt-expenditure account N et lend ing Budget out lays1 Budget surplus or deficit (-) Less: Invest Public Plus: ments by Govt, E quals: Trea debt Agency accounts Less: Total sury securi securi Special borrow operat n o tes3 ties ties ing ing Special Other balance issues O ther means of financ ing, ne t4 O ther Fiscal year: 1969........................... 1970........................... 1971........................... 1972........................... 187,784 183,072 193,743 194,456 188,392 210,318 208,649 3,236 6,142 633 1,476 184,548 2,131 196,588 - 2 ,8 4 5 17,198 -1,739 -3 4 7 1,107 211,425 -2 3 ,0 3 3 27,211 231,876 -2 3 ,2 2 7 29,131 -1,269 7,364 9,386 6,616 6,813 2,089 -1,384 2 -1 ,2 9 5 676 5,397 800 19,448 19,442 1,607 H alf year: 1971—J a n .-J u n e ... Ju ly -D ee.. .. 1972—Jan .-Ju n e . . . J u ly -D e e.. . . 100,809 106,201 93,180 110,608 115,549 106,061 8,971 -3 2 6 1,008 107,209 - 6 ,4 0 0 948 111,554 -1 8 ,3 7 4 26,001 -1,117 3,130 -1 5 0 120,319 - 4 ,8 5 0 876 118,586 -1 2 ,5 2 5 22,037 4,809 2,803 4,010 6,388 647 523 1,089 -8 6 1 3,189 21,561 - 2 ,1 1 4 17,386 656 973 389 -956 303 4,039 80 -2,122 1,028 8,377 386 -5 ,4 3 0 -100 -6 8 3 - 4 4 -1,770 272 3,527 -370 2,975 9 1,409 534 2,639 22 -1,339 24 3,085 380 -6 5 9 -9 3 1,104 97 1,746 -2 9 -6 2 8 -6 16 -5 0 8 88 42 -3 4 3 r3 .797 - 2 ,0 5 9 -6 1 8 -3 ,3 6 8 3,730 934 376 2,851 5,298 4,197 591 4,047 -2 ,0 3 0 417 -1,129 -4 ,0 1 2 4,783 -1 ,7 8 6 305 2,795 84 1,983 1,338 1,508 -1,617 -3 4 6 2,080 3,478 -1 ,8 1 0 -3,284 222 -2,355 -9 2 604 717 37 7 -5 6 9 57 -5 9 5 168 119 206 1,519 3,863 3,005 302 408 1,152 99 1,383 - 2 1 2 -1,507 -8 3 2,883 M onth: 1972—M ar............... A pr................ M ay............... June............... Ju ly ............... Aug................ Sept............... Oct................. D ec................ '15,224 24,534 17,275 25,589 15,207 18,213 22,183 14,738 16,748 18,972 1973—Jan................. Feb................ M ar............... 21,130 18,067 15,987 19,113 19,723 -515 237 r20,329 18,598 19,960 23,202 18,591 20,581 18,471 20,055 21,165 19,721 23,631 20,227 20,806 3,312 -5 ,1 0 5 5,935 -2,039 -2,685 2,607 -6 5 1 2,387 -3 ,3 8 4 5,123 3,056 -2 ,3 6 9 3,712 -1,493 6,000 -5 ,3 1 7 -4 ,4 P 4,301 5,051 -7 5 0 -2,501 -2 ,1 6 0 -4 ,8 2 0 770 4,770 3,768 18 -9 27 -9 0 0 780 584 596 2,151 710 1,362 1,616 -5 8 1 -9 7 9 1,108 269 -9 8 2 3,586 6,255 Selected balances Federal securities Treasury operating balance End of period F.R . Banks Tax and loan accounts O ther deposi taries 5 Total Public debt securities Agency securities Less: Investments of Govt, accounts Special issues O ther Less: Special n otes3 Equals: Total held by public M em o: D ebt of G ovt.sponsored corps.— N ow p rivate6 Fiscal year: 1969.......................... 1970........................... 1971........................... 1972........................... 1,258 1,005 1,274 2,344 4,525 6,929 7,372 7,934 112 111 109 5 139 5,894 8,045 8,755 10,117 353,720 370,919 398,130 427,260 14,249 12,510 12,163 10,894 66,738 76,124 82,740 89,539 20,923 21,599 22,400 24,023 825 825 825 825 279,483 284,880 304,328 323,770 24,991 35,789 36,886 41,044 Calendar year: 1971........................... 1972........................... 2,020 1,856 9,173 8,907 113 310 11,306 11,073 424,131 449,298 11,044 11,770 85,544 95,924 22,922 23,164 825 825 325,884 341,155 39,860 42.640 June.............. Ju ly............... Aug............... Sept............... Oct................ N ov............... D ec................ 1,293 1,871 2,144 2,344 2,298 1,730 1,395 1,613 1,182 1,856 6,391 9,724 7,420 7,934 6,547 3,025 8,105 6,051 6,786 8,907 2 136 136 139 144 222 259 309 310 310 7,685 11,732 9,700 10,117 8,988 4,976 9,759 7,973 8,278 11,073 427,343 425,304 427,912 427,260 432,383 435,439 433,946 439,947 444,247 449,298 11,034 10,991 11,263 10,894 10,903 11,437 11,459 11,483 11,863 11,770 84,804 83,034 86,561 89,539 90,944 93,616 92,281 95,365 94,821 95,924 22,935 24.681 24,652 24,023 24,018 24,002 23,490 23,579 23,506 23,164 825 825 825 825 825 825 825 825 825 825 329,814 327,755 327,137 323,770 327,499 328,433 328,809 331,660 336,958 341,155 40,109 40,632 40,426 41,044 40,981 41,037 41,724 41,760 42,496 42.640 1973—Jan ................ Feb................ M ar.............. 2,749 2,073 2,882 8,317 9,401 9,744 310 310 309 11,376 11,784 12,935 450,068 454,838 458,606 11,787 11,779 11,806 95,024 95,804 96,413 23,332 23,451 23,632 825 825 825 342,674 346,537 349,542 43,057 43,472 M o n th : 1972—M ar............... A pr................ 1 Equals net expenditures plus net lending. 2 The decrease in Federal securities resulting from conversion to private ownership o f G ovt.-sponsored corporations (totaling $9,853 million) is not included here. In the bottom panel, however, these conversions de crease the outstanding am ounts o f Federal securities held by the public mainly by reductions in agency securities. The Federal N ational Mortgage Association (FN M A ) was converted to private owership in Sept. 1968 and the Federal intermediate credit banks (FICB) and banks for coopera tives in Dec. 1968. 3 Represents non-interest-bearing public debt securities issued to the International M onetary Fund and international lending organizations. New obligations to these agencies are handled by letters o f credit. 4 Includes accrued interest payable on public debt securities, deposit funds, miscellaneous liability and asset accounts, and seigniorage. 5 As of Jan. 3, 1972, the Treasury operating balance was redefined to exclude the gold balance and to include previously excluded “ Other deposi taries” (deposits in certain commercial depositaries that have been con verted from a time to a demand basis to permit greater flexibility in Treasury cash management). 6 Includes debt of Federal home loan banks, Federal land banks, R .F .K . Stadium Fund, FN M A (beginning Sept. 1968), FICB, and banks for cooperatives (beginning Dec. 1968). N ote.—Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. MAY 1973 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation income taxes Individual income taxes Period Employment taxes and contributions1 Gross R e Un- Other N et re empl. net funds re total ceipts Pay Self- insur. ceipts2 roll taxes empl. Total N on W ith with held held Fiscal year: 1969........................................ 1970....................................... 1971....................................... 1972........................................ 187,784 193,743 188,392 208,649 70,182 77,416 76,490 83,200 27,258 26,236 24,262 25,679 Social insurance taxes and contributions Re funds Net total 10,191 13,240 14,522 14,143 87,249 90,412 86,230 94,737 38,338 35,037 30,320 34,926 1,660 2,208 3,535 2,760 H alf year: 1971—Jan .-Ju n e................. 100,808 39,025 18,693 13,957 43,761 17,576 2,069 574 43,465 13,262 1,448 July-D ee................... 93,180 38,449 5,589 1972—Jan .-Ju n e ................. 115,469 44,751 20,090 13,569 51,272 21,664 1,312 July-D ee................... 106,061 46,058 5,784 688 51,154 15,315 1,459 M onth: 1972—M ar............................ '15,224 '7,784 1,323 5,200 '3,906 4,995 A pr............................ 24,534 6,599 8,650 3,284 11,985 5,145 967 M a y .......................... 17,275 8,141 1,413 2,997 6,557 Ju n e........................... 25,589 8,020 3,704 670 11,054 8,452 Ju ly ........................... 15,207 7,052 548 245 7,355 1,258 Aug............................ 18,213 8,175 362 157 8,380 855 Sept............................ 22,183 7,305 3,794 95 11,005 5,289 61 7,595 1,287 Oct............................. 14,738 7,187 469 69 8,613 Nov............................ 16,748 8,425 257 853 353 61 8,206 5,772 D ec............................. 18,972 7,915 1973—Jan............................. Feb............................. M ar............................ 21,130 8,254 4,671 27 12,897 1,539 865 18,067 8,404 768 1,104 8,067 15,987 8,748 1,494 6,833 3,409 5,208 273 250 234 185 187 190 324 323 294 140 32,521 37,190 39,751 44,088 1,715 1,942 1,948 2,032 2,353 2,700 3,206 3,437 39,918 45,298 48,578 53,914 21,983 1,815 2,325 1,630 19,643 155 1,518 1,673 24,445 1,877 4,736 1,764 22,493 165 2,437 1,773 27,753 22,989 30,925 26,867 3,328 3,465 3,673 4,357 3,787 167 71 3,877 1,153 343 223 1,636 5,281 3,682 92 64 3,727 260 5,367 1,175 3,529 63 145 3,225 15 210 4,044 637 2,601 5 92 158 3,833 193 5,900 342 4,771 139 167 186 174 684 63 325 283 303 285 289 307 302 311 287 277 4,350 5,655 7,443 4,122 4,277 6,849 4,038 3,759 4,969 2,975 Estate Misc. and re gift ceipts 3 Excise Cus taxes toms 15,222 15,705 16,614 15,477 2,319 2,430 2,591 3,287 3,491 3,644 3,735 5,436 2,908 3,424 3,858 3,633 8,462 1,274 2,198 1,853 8,961 1,838 2,395 1,718 6,516 1,449 3,041 1,915 8,244 1,551 2,333 2,056 1,130 1,091 1,371 1,363 1,442 1,351 1,327 1,387 1,452 1,286 264 215 235 252 237 278 237 281 284 234 602 372 461 388 334 423 316 409 487 364 '250 342 475 144 492 266 295 343 383 276 340 4,486 1,437 278 7,029 1,186 320 5,340 1,244 289 255 278 396 568 489 244 289 360 Budget outlays 4 Com. mun. deve lop. and hous ing Inter est G en eral govt. G en eral reve nue shar ing 18,312 19,608 20,582 22,808 24,672 3,336 3,970 4,890 5,631 6,025 -6 ,3 8 0 -7,376 -7,858 6,786 -8,381 6,035 -9,131 Total N a tional de fense Fiscal year: 197 0 197 1 197 2 1973 ' 6................... 19746..................... 196,588 211,425 231,876 249,796 268,665 80,295 77,661 78,336 76,435 81,074 3,570 3,095 3,726 3,341 3,811 3,749 3,381 3,422 3,061 3,135 6,201 5,096 7.063 6.064 5,572 2,568 2,716 3,761 876 3,663 9,310 11,310 11,201 12,543 11,580 H alf year: 1971—J a n .-J u n e .. July-D ee... 1972—J a n .-J u n e .. Ju ly -D e e... 107,242 111,557 120,319 118,586 39,178 35,755 42,583 35,350 1,475 1,752 2,037 1,640 1,661 1,777 1,645 1,676 679 5,999 1,062 4,616 1,152 1,952 1,807 329 5,475 6,030 5,164 6,200 1,705 2,181 2,035 2,637 4,906 4,355 5,842 5,133 37,454 38,131 43,407 43,212 M o n th : 1972—M a r '20,329 A pr............. 18,598 M ay ........... 19,960 Ju n e ........... 23,202 July............ 18,591 Aug............ 20,581 Sept............ 18,471 Oct............. 20,055 N ov............ 21,165 D ec............. 19,721 '7 ,1 6 0 6,738 7,107 9,087 5,139 5,873 5,397 6,305 6,501 6,135 '360 265 268 487 313 300 198 259 350 221 310 238 207 292 289 289 273 271 272 284 16 -1 9 6 126 120 2,397 1,127 102 806 329 -1 4 6 265 255 265 520 -8 2 1 554 321 -1 6 353 -4 0 '878 793 713 1,350 827 1,333 1,173 1,056 982 829 342 9 490 505 529 658 408 244 384 414 933 728 1,033 1,429 764 905 852 800 851 960 7,111 6,936 6,914 8,703 6,214 6,779 6,970 7,688 7,851 7,710 1.045 929 973 911 884 858 832 896 1,279 989 '1,800 1,792 1,784 1,709 1,695 1,723 1,899 1,559 1,919 1,809 1973—Ja................ n 23,630 Feb............. 20,227 M ar............ 20,806 6,633 6,265 6,963 82 280 323 271 241 301 994 -1,053 431 230 310 -7 7 1,546 567 1,072 483 368 270 808 904 786 8,130 7,907 7,565 1,157 1.046 1,064 1,777 2,002 2,097 Period Intl. affairs Space re search Com N at Agri ural merce and cul re ture sources transp. 1 Old-age, disability, and hospital insurance, and R ailroad Retirement accounts. 2 Supplementary medical insurance premiums and Federal employee retirement contributions. 3 Deposits o f earnings by Federal Reserve Banks and other miscellane ous receipts. 4 Outlays by functional categories are published in the M onthly Treas ury Statement (beginning April 1969). M onthly back data (beginning July 1968) are published in the Treasury Bulletin o f June 1969. 5 Consists o f Government contributions for employee retirement and interest received by trust funds. Educa Health tion and and m an wel power fare Vet erans 2,965 7,289 56,697 8,677 3,357 8,226 70,607 9,776 4,282 9,751 81,988 10.731 3,957 10,500 93,880 11,795 4,931 10,110 103,709 11.732 5,162 10,014 5,003 10,050 5,744 10,532 5,740 10,604 2,147 2,392 2,498 2,870 72,617 Intragovt. trans ac tions 5 -3,770 -3,822 -4,036 -4,039 -2 9 3 '402 419 -3 0 8 -3 7 1 389 -2,402 497 612 -2 5 2 610 -4 0 9 322 -2 7 6 -2 7 6 463 -3 5 3 448 415 7 2,617 -2 ,4 7 4 586 374 462 2,514 9 -2 9 7 -3 9 7 -3 2 9 6 Estimates presented in the Jan. 1974 Budget Document. Breakdowns do not add to totals because special allowances for contingencies, Federal pay increase (excluding D epartm ent o f Defense), totaling $500 million for fiscal 1973, and $1,750 million for fiscal 1974, are not included. 7 Outlays o f $6,786 million in fiscal 1973 contain retroactive payments of $2,600 million for fiscal 1972. N ote.—Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. A 42 U.S. GOVERNM ENT SECURITIES □ MAY 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions o f dollars) Public issues End o f period Total gross public debt 1 M arketable Total Total Bills Foreign issues 4 Certifi cates Notes 30.0 6.0 10.1 33.6 119.5 50.2 48.3 61.4 76.5 85.4 104.2 99.2 95.2 85.3 69.9 2.8 2.7 2 .6 2.5 2 .4 52.9 52.3 54.9 56.7 56.9 19 41_D ec. 1946—Dec. 57.9 259.1 50.5 233.1 41.6 176.6 2.0 17.0 1965—Dec. 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 320.9 329.3 344.7 358.0 368.2 270.3 273.0 284.0 296.0 295.2 214.6 218.0 226.5 236.8 235.9 60.2 64.7 69.9 75.0 80.6 1970—Dec. 1971—Dec., 389.2 424.1 309.1 336.7 247.7 262.0 87.9 97.5 101.2 114.0 58.6 50.6 2 .4 2.3 1972—Apr., May June, July. Aug. Sept. Oct.. Nov. Dec. 425.3 427.9 427.3 432.4 435.4 433.9 439.9 444.2 449.3 340.4 339.5 335.8 339.6 339.9 339.8 342.7 347.6 351.4 263.0 261.9 257.2 257.7 258.1 257.7 260.9 265.6 269.5 98.3 98.1 94.6 95.2 96.2 96.4 97.5 100.7 103.9 114.7 113.4 113.4 113.4 115.7 115.7 117.7 119.4 121.5 50.0 5 0.4 49.1 49.1 46.2 45.7 45.6 45.5 44.1 1973—Jan.. Feb. Mar. Apr. 450.1 454.8 458.6 457.1 353.2 357.1 360.4 358.9 271.1 269.9 269.8 267.8 104.9 105.0 105.0 103.2 121.5 120.2 120.2 120.2 44.7 44.6 44.6 44.5 5 .9 1 Includes non-interest-bearing debt (of which $620 million on Apr. 30, 1973, was not subject to statutory debt limitation). 2 Includes Treasury bonds and m inor am ounts o f Panam a Canal and postal savings bonds. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and R ural Electrification Administration bonds; before 1954, Armed Forces leave bonds; before 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. N onm arketable C on vert ible Bonds 2 bonds 8.9 56.5 Special issues 5 Sav ings bonds & notes 6.1 49.8 7 .0 24.6 2 .4 1.5 3.1 4 .3 3.8 50.3 50.8 51.7 52.3 52.2 46.3 52.0 57.2 59.1 71.0 59.1 72.3 5.7 16.8 52.5 54.9 78.1 85.7 2 .3 2 .3 2 .3 2 .3 2 .3 2 .3 2.3 2 .3 2 .3 75.1 75.2 76.3 79.5 79.5 79.8 79.6 79.6 79.5 18.4 18.2 19.0 22.0 21.7 21.7 21.2 21.0 20.6 55.9 56.2 56.5 56.7 57.0 57.2 57.5 57.8 58.1 83.1 86.6 89.6 91.0 93.6 92.3 95.4 94.9 95.9 2.3 2.3 2.3 2.3 79.7 84.9 88.3 88.7 20.5 25.4 28.3 28.5 58.4 58.7 59.0 59.3 95.0 95.8 96.4 96.4 4 Nonmarketable certificates o f indebtedness, notes, and bonds in the Treasury foreign series and foreign currency series issues. 5 Held only by U.S. Govt, agencies and trust funds and the Federal home loan banks. N ote.—Based on Daily Statement o f U.S. Treasury. See also second paragraph in N ote to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions o f dollars) Held by private investors Held b y Total gross public debt U.S. Govt. agencies and trust funds F.R. Banks 1939—D ec................. 1946—D ec................. 41.9 259.1 6.1 27.4 2 .5 23.4 1965—D ec................. 1966—D ec................. 1967—D ec................. 1968—D ec................. 320.9 329.3 344.7 358.0 59.7 65.9 73.1 76.6 1969—D ec................. 1970—Dec................. 1971—Dec................. 368.2 389.2 424.1 1972—A pr................. M ay ............... Ju n e ............... July................. Aug................. Sept................ O ct.................. N ov................. D ec................. 1973—Jan.................. Feb.................. M ar................. End o f period Com mercial banks M utual savings banks Insur ance com panies Other corpo rations State and local govts. 33.4 208.3 12.7 74.5 2 .7 11.8 5.7 24.9 2.0 15.3 40.8 44.3 49.1 52.9 220.5 219.2 222.4 228.5 60.7 5 7.4 63.8 66.0 5.3 4 .6 4.1 3.6 10.3 9.5 8.6 8.0 89.0 97.1 106.0 57.2 62.1 70.2 222.0 229.9 247.9 56.8 62.7 65.3 2 .9 2 .8 2.7 425.3 427.9 427.3 432.4 435.4 433.9 439.9 444.2 449.3 105.5 109.1 111.5 112.8 115.4 113.5 116.7 116.1 116.9 70.3 71.6 7 1.4 70.8 70.7 69.7 70.1 69.5 69.9 249.5 247.2 244.4 248.8 249.3 250.7 253.1 258.6 262.5 61.9 61.0 60.5 60.2 60.0 60.8 6 1.0 63.5 67.0 450.1 454.8 458.6 116.2 117.1 117.9 7 2.0 72.6 74.3 261.8 265.1 266.4 66.0 62.4 61.6 Total 1 Consists of investm ents of foreign and in tern atio n al accounts in the U nited States. 2 Consists o f savings and loan assns., nonprofit institutions, cor porate pension tru st funds, an d dealers and brokers. A lso included are certain G ovt, deposit accounts and G ovt.-sponsored agencies. N ote.—R eported data for F.R . Banks and U.S. Govt, agencies and trust funds; Treasury estimates for other groups. Individuals Foreign O ther and misc. inter inves national 1 tors 2 Savings bonds Other securities .4 6.3 1.9 44.2 7.5 20.0 .2 2.1 .3 9 .3 15.8 14.9 12.2 14.2 22.9 24.3 24.1 24.4 49.7 50.3 51.2 51.9 22.4 24.3 22.8 23.9 16.7 14.5 15.8 14.3 16.7 19.4 19.9 22 .4 7.1 7 .0 6.6 11.7 9 .4 12.4 25.9 25.2 25.0 51.8 52.1 54.4 29.6 29.8 19.6 11.2 20.6 46.9 24.9 20.4 15.0 2.7 2.8 2.7 2 .7 2.6 2.8 2.7 2.7 2.6 6.4 6.3 6.2 6.1 6 .0 6.1 5.9 6.1 6.0 10.5 11.3 10.3 10.0 9 .5 8.9 10.4 12.0 11.7 25.7 25.5 25.9 26.5 26.5 27.2 2 8 .0 27.9 28.3 55.5 55.8 56.0 56.3 56.6 56.8 57.1 57.4 57.1 19.1 18.6 18.0 18.0 17.6 17.2 17.0 17.1 17.0 49.8 49.4 50.0 54.6 55.9 55.3 55.8 56.0 55.3 17.9 16.6 14.9 14.5 14.6 15.7 15.2 16.1 17.0 2.6 2.6 2.5 6.1 5.8 5.9 12.3 12.7 13.0 29.5 29.0 28.9 58.0 58.3 58.6 16.8 16.6 16.6 54.3 61.1 63.1 16.3 16.7 16.3 The debt and ow nership concepts were altered beginning w ith the M ar. 1969 B u lle tin . T he new concepts (1 ) exclude g uaranteed se curities and (2) rem ove from U .S. G ovt, agencies and tru st funds and add to other m iscellaneous investors the holdings o f certain G ovt.-sponsored but privately owned agencies and certain Govt, deposit accounts. MAY 1973 o U.S. GOVERNM ENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions o f dollars) W ithin 1 year Type o f holder and date Total Total All holders: 1970—Dec. 1971—Dec. 1972—Dec. 1973—Feb. M ar. Bills O ther 1-5 years 5-10 years 10-20 years Over 20 years 31............................................................. 31............................................................. 3 1 ............................................................. 2 8 ............................................................. 3 1 ............................................................. 247,713 262,038 269,509 269,881 269,775 123,423 119,141 130,422 130,205 130,187 87,923 97,505 103,870 105,008 104,991 35,500 21,636 26,552 25,197 25,196 82,318 93,648 88,564 95,423 95,425 22,554 29,321 29,143 22,357 22,356 8,556 9,530 15,301 16,114 16,059 10,863 10,397 6,079 5,783 5,748 U.S. Govt, agencies and trust funds: 1970—Dec. 31..................................................... 1971—Dec. 31..................................................... 1972—Dec. 31..................................................... 1973—Feb. 2 8 .................................................... Mar. 3 1 .................................................... 17,092 18,444 19,360 19,779 20,040 3,005 1,380 1,609 1,756 1,751 708 605 674 552 554 2,297 775 935 1,204 1,197 6,075 7,614 6,418 7,096 7,207 3,877 4,676 5,487 4,956 4,992 1,748 2,319 4,317 4,487 4,592 2,387 2,456 1,530 1,484 1,498 Federal Reserve B anks: 1970—Dec. 31..................................................... 1971—Dec. 3 1 ..................................................... 1972—Dec. 31..................................................... 1973—Feb. 2 8 .................................................... M ar. 3 1 .................................................... 62,142 70,218 69,906 72,620 74,276 36,338 36,032 37,750 38,668 40,268 25,965 31,033 29,745 31,901 33,539 10,373 4,999 8,005 6,767 6,729 19,089 25,299 24,497 28,209 28,288 6,046 7,702 6,109 4,143 4,133 229 584 1,414 1,490 1,477 440 601 136 109 110 Held by private investors: 1970—Dec. 31..................................................... 1971—Dec. 3 1 ..................................................... 1972—Dec. 3 1 .................................................... 1973—Feb. 2 8 ..................................................... M ar. 31..................................................... 168,479 173,376 180,243 177,482 175,459 84,080 81,729 91,063 89,781 88,168 61,250 65,867 73,451 72,555 70,898 22,830 15,862 17,612 17,226 17,270 57,154 60,735 57,649 60,118 59,930 12,631 16,943 17,547 13,258 13,231 6,579 6,627 9,570 10,137 9,990 8,036 7,340 4,413 4,190 4,140 Commercial banks: 1970—Dec. 31............................................. 1971—Dec. 31............................................ 1972—Dec. 3 1 ............................................ 1973—Feb. 2 8 ............................................ M ar. 3 1 ............................................ 50,917 51,363 52,440 48,691 47,837 19,208 14,920 18,077 15,023 14,807 10,314 8,287 10,289 7,570 7,640 8,894 6,633 7,788 7,453 7,167 26,609 28,823 27,765 28,559 28,010 4,474 6,847 5,654 3,996 4,018 367 555 864 1,045 928 260 217 80 69 74 Mutual savings banks: 1970—Dec. 31............................................. 1971—Dec. 31............................................ 1972—Dec. 3 1 ............................................ 1973—Feb. 2 8 ............................................ M ar. 3 1 ............................................ 2,745 2,742 2,609 2,556 2,517 525 416 590 518 503 171 235 309 225 234 354 181 281 293 269 1,168 1,221 1,152 1,232 1,231 339 499 469 308 294 329 281 274 350 352 385 326 124 148 136 Insurance companies: 1970—Dec. 31............................................. 1971—Dec. 31............................................ 1972—Dec. 3 1 ............................................ 1973—Feb. 2 8 ............................................ Mar. 3 1 ............................................ 6,066 5,679 5,220 5,037 5,106 893 720 799 746 828 456 325 448 287 371 437 395 351 459 457 1,723 1,499 1,190 1,188 1,188 849 993 976 849 857 1,369 1,366 1,593 1,648 1,661 1,231 1,102 661 607 574 Nonfinancial corporations: 1970—Dec. 31............................................. 1971—Dec. 3 1 ............................................ 1972—Dec. 3 1 ............................................ 1973—Feb. 2 8 ............................................ Mar. 3 1 ............................................ 3,057 6,021 4,948 5,644 5,850 1,547 4,191 3,604 4,282 4,446 1,194 3,280 1,198 3,154 3,190 353 911 2,406 1,128 1,256 1,260 1,492 1,198 1,210 1,258 242 301 121 95 85 2 16 25 54 59 6 20 1 3 1 Savings and loan 1970—Dec. 1971—Dec. 1972—Dec. 1973—Feb. Mar. associations: 31............................................. 3 1 ............................................ 3 1 ............................................ 2 8 ............................................ 3 1 ............................................ 3,263 3,002 2,873 2,925 2,838 583 629 820 912 849 220 343 498 548 496 363 286 322 364 353 1,899 1,449 1,140 1,314 1,309 281 587 605 387 388 243 162 226 238 219 258 175 81 74 74 State and local governments: 1970—Dec. 31............................................. 1971—Dec. 31............................................ 1972—Dec. 31............................................ 1973—Feb. 2 8 ............................................ Mar. 31............................................ 11,204 9,823 10,904 11,234 11,195 5,184 4,592 6,159 6,562 6,635 3,803 3,832 5,203 5,596 5,727 1,381 760 956 966 908 2,458 2,268 2,033 2,157 2,103 774 783 816 729 711 1,191 918 1,298 1,236 1,217 1,598 1,263 598 551 529 91,227 94,746 101,249 101,395 100,116 56,140 56,261 61,014 61,738 60,100 45,092 49,565 55,506 55,175 53,240 11,048 6,696 5,508 6,563 6,860 22,037 23,983 23,171 24,458 24,831 5,672 6,933 8,906 6,894 6,878 3,078 3,329 5,290 5,566 5,554 4,298 4,237 2,868 2,738 2,752 All others: 1970—Dec. 1971—Dec. 1972—Dec. 1973—Feb. Mar. 31............................................. 31............................................ 31............................................ 2 8 ............................................ 31............................................. N ote.—D irect public issues only. Based on Treasury Survey o f Ownership. Beginning with Dec. 1968, certain Govt.-sponsored but privately owned agencies and certain Govt, deposit accounts have been removed from U.S. Govt, agencies and trust funds and added to “ All others.” Comparable data are not available for earlier periods. D ata complete for U.S. Govt, agencies and trust funds and F.R. Banks but for other groups are based on Treasury Survey data. O f total mar- ketable issues held by groups, the proportion held on latest date by those reporting in the Survey and the num ber o f owners surveyed were: (1) about 90 per cent by the 5,617 commercial banks, 480 mutual savings banks, and 738 insurance companies combined; (2) about 50 per cent by the 466 nonfinancial corporations and 486 savings and loan assns.; and (3) about 70 per cent by 505 State and local govts. “ All others,” a residual, includes holdings o f all those not reporting in the Treasury Survey, including investor groups not listed separately. U.S. GOVERNM ENT SECURITIES □ MAY 1973 A 44 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Governm ent securities By m aturity By type o f custom er Period T otal W ithin 1 year 1-5 years 5-10 years U.S. Govt, U.S. Govt, securities securities dealers brokers Over 10 years Com mercial banks All o th e r1 U.S. Govt. agency securities D ec.................................. 3,177 2,990 2,542 2,452 2,571 2,658 2,695 3,047 3,397 3,184 2,443 2,300 1,939 2,001 2,124 1,953 2,225 2,473 2,397 2,640 464 460 348 257 283 377 231 350 709 361 241 203 221 161 131 191 143 126 168 118 29 28 35 34 33 137 97 99 123 65 800 704 589 545 633 587 635 837 835 757 437 450 364 355 382 411 504 420 498 352 1,060 1,002 821 759 851 911 845 988 1,228 1,215 881 835 767 793 704 749 710 802 837 860 459 609 485 411 439 443 482 561 731 472 1973—Jan................................... Feb.................................. M ar................................. 3,158 4,155 3,077 2,445 2,975 2,311 443 721 508 148 370 201 122 89 57 793 r888 713 470 r808 585 1,113 1,360 987 781 '1,099 792 463 '645 664 Week ending— 1973—M ar. 7......................... 14......................... 21......................... 28......................... 3,133 3,084 3,061 2,804 2,436 2,234 2,198 2,193 410 538 604 437 221 248 213 122 66 64 47 53 736 693 734 709 565 637 650 432 995 995 970 914 837 759 708 749 527 497 725 841 3,503 3,594 2,968 2,917 2,808 2,739 2,237 2,543 480 573 518 252 166 224 173 83 49 58 40 39 676 890 643 612 677 760 666 474 1,208 1,184 1,042 962 943 761 616 869 649 1,182 606 576 1972— M ar................................. A pr.................................. M ay ................................ Ju n e ................................ July................................. Aug................................. O ct.................................. Apr. 4 ......................... 11......................... 18......................... 25......................... i Since Jan. 1972 has included transactions o f dealers and brokers in securities other than U.S. Govt. N ote.—The transactions data combine m arket purchases and sales o f U.S. Govt, securities dealers reporting to the F.R. Bank o f New York. They do not include allotments of, and exchanges for, new U.S. Govt, securities, redemptions of called or m atured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), or similar contracts. Averages o f daily figures based on the num ber of trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions o f dollars) (In millions o f dollars) U.S. G overnment securities, by maturity Commercial banks All Within 1 m aturi ties year 1-5 years 5-10 years Over 10 years U.S. Govt. agency securi ties 1972— M ar................. A pr.................. M ay................. June................. Ju ly ................. Aug.................. Sept................. Oct................... N ov................. D ec.................. 4,933 3,573 4,257 3,733 3,253 3,905 4,386 3,333 4,522 4,973 4,710 3,713 4,089 3,903 3,626 3,370 4,374 3,452 4,113 4,903 228 20 84 -5 5 -1 4 6 41 -8 3 -2 9 335 73 -3 2 -1 3 1 102 -9 9 -2 1 6 130 -5 8 -1 3 2 8 -4 1 27 -2 9 -1 8 -1 6 -1 1 363 153 41 66 37 489 422 551 532 356 404 408 543 834 556 1972—M ar............. 1973—Jan................... Feb.................. M ar................. 4,744 3,394 2,702 4,959 3,365 3,130 -5 3 -9 -2 7 4 -2 5 9 -1 -1 4 3 97 39 -1 1 281 '202 180 1973—Jan .............. Week ending— 1973—Feb. 7 ......... 14 , 2 1 ......... 2 8 ......... 3,729 4,238 2,735 2,910 4,051 3,615 2,650 3,051 -8 1 256 -3 3 -1 3 0 -3 1 8 304 113 -2 0 77 64 5 9 139 221 266 199 2,477 2,399 2,688 3,040 2,827 2,834 3,169 3,523 -2 4 5 -2 8 4 -3 1 5 -2 9 6 -9 0 -1 4 0 -1 4 9 -1 7 8 -1 5 -1 1 -1 8 -9 150 135 182 235 Period M ar. 7 ......... 1 4 ......... 2 1 ......... 2 8 ......... N ote.—The figures include all securities sold by dealers under repur chase contracts regardless o f the maturity date o f the contract, unless the contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same m aturity and involving the same am ount o f securities. Included in the repurchase contracts are some th at more clearly represent investments by the holders o f the securities rather than dealer trading positions. Average o f daily figures based on num ber o f trading days in the period. All sources Period Corpora tions 1 All other New Y ork City Else where 4,662 3,400 4,073 3,804 3,055 4,021 4,379 3,055 4,198 4,848 1,347 1,044 1,107 1,056 753 1,356 1,633 1,227 1,538 1,695 907 746 931 838 496 580 599 406 617 808 949 657 755 804 820 927 705 490 709 944 1,458 953 1,280 1,108 986 1,158 1,442 932 1,334 1,399 M ar............ 4,520 3,415 2,799 1,346 1,063 903 794 455 292 932 490 281 1,449 1,408 1,323 Week ending— 1973—Feb. 7 . . . 1 4 ... 2 1 . .. 2 8 . .. 3,792 3,663 2,899 3,307 1,336 1,025 868 1,025 462 739 216 401 534 531 400 495 1,461 1,368 1,416 1,387 2,665 2,557 2,677 2,910 869 900 1,000 857 222 205 184 354 342 326 156 277 1,233 1,125 1,338 1,423 M ay............ June............ July............. Sept............. N ov............. M ar. 7 ... 14. .. 2 1 . .. 28. .. 1 All business corporations, except commercial banks and insurance companies. N ote.—Averages of daily figures based on the num ber of calendar days in the period. Both bank and nonbank dealers are included. See also N ote to the table on the left. MAY 1973 □ U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, APRIL 30, 1973 (In millions of dollars) Issue and coupon rate Am ount Issue and coupon rate A m ount Treasury bills—Cont. Oct. 4, 1 9 7 3 .... 4.303 Oct. 11, 1 9 7 3 .... 4.303 Oct. 18, 1 9 7 3 .... 4.304 Oct. 23, 1 9 7 3 .... 4.301 Oct. 25, 1 9 7 3 .... 6,005 Nov. 20, 1973 4,287 Dec. 18, 1 9 7 3 .... 4.302 Jan. 15, 1 9 7 4 .... 4,306 Feb. 12, 1 9 7 4 .... 2,510 Mar. 12, 1 9 7 4 .... 4.305 Apr. 9 , 1 9 7 4 . . . . 1.701 4.303 4.303 4.304 4,300 1.702 Treasury notes 1,801 M ay 15, 1973..........7 */4 May 15, 1973..........4*4 1,801 1.803 Aug. 15, 1973..........8 H Oct. 1, 1973............ m 1,801 1.803 Feb. 15, 1974......... 7% Apr. 1, 1974............U £ 1,800 1,800 M ay 15, 1974......... 7 Va 1,801 Aug. 15, 1974......... 55/s 1,801 Sept. 30, 1974......... 6 1,801 Oct. 1, 1974............11/2 1,807 Nov. 15, 1974..........534 Treasury bills M ay 3, 1973. May 10, 1973. May 17, 1973. May 24, 1973. May 31, 1973. June 7, 1973. June 14, 1973. June 21, 1973. June 22, 1973f June 28, 1973. June 30, 1973. July 5, 1973. July 12, 1973. July 19, 1973. July 26, 1973. July 31, 1973. Aug. 2, 1973. Aug. 9, 1973. Aug. 16, 1973. Aug. 23, 1973. Aug. 28, 1973. Aug. 30, 1973. Sept. 6, 1973. Sept. 13, 1973. Sept. 20, 1973. Sept. 25, 1973. Sept. 27, 1973. 1,801 1,801 1,800 1,802 1.799 1,802 1.800 1,804 1,801 1,790 1,802 5,844 3,792 1,839 30 2,960 34 4,334 10,284 2,060 42 5,442 + Tax-anticipation series. * Less than $500,000. Issue and coupon rate Treasury notes—Cont. Dec. 31, 1974.. ...57 / 8 Feb. 15, 1975.. ...5 3 4 Feb. 15, 1975.. ...57 / 8 Apr. 1 , . . . 1% May 15, 1975.. ...57 / 8 M ay 15, 1975.. . . .6 Aug. 15, 1975.. ...57 / 8 1, 1975.., Oct. Nov. 15, 1975.. . . . 7 Feb. 15, 1976., ,. ..6 1 4 Feb. 15, 1976.. ...57/8 Apr. 1, . . . 1% M ay 15, 1976.. ...5 3 4 May 15, 1976.... . . 6 i/i Aug. 15, 1 976......71/4 Aug. 15, 1976., . . . 61/2 1, 19 7 6 .., . . . 1 % Oct. Nov. 15, 19 7 6 .., , . . 6 1 4 Feb. 15, 19 7 7 ...,. .8 Apr. 1, 1 9 7 7 .., ...1 % Aug. 15, 1 9 7 7 ... ..734 Oct. 1, 19 7 7 ... • • W i Feb. 15, 1 9 7 8 ... . . . 61/4 Apr. 1, 1978. . ...1V4 Nov. 15, 1 978... . .6 Aug. 15, 1 9 7 9 ... , . . 6 1 4 Nov. 15, 1 9 7 9 ..,...65/g A m ount 2 ,1 0 2 4,015 1 ,2 2 2 8 1,776 6,760 7,679 30 3,115 3,739 4,945 27 2,802 2,697 4,194 3,883 11 4,325 5,163 5 2,264 17 8,389 * 8,207 4,559 1,604 Issue and coupon rate Am ount Treasury bonds Aug. 15, 1 9 7 3 .... .4 Nov. 15. 1 9 7 3 .... • 41/s Feb. 15, • 41/s M ay 15, .4 1 4 .37/8 Nov. 15, M ay 15, 1975-85. .414 June 15, 1978-83. .314 Feb. 15, 1 9 8 0 .... .4 Nov. 15, 1 9 8 0 .... • 3Vi Aug. 15, 1981 , , , Feb. 15, 1 9 8 2 .... •63/8 Aug. 15, .63/8 M ay 15, 1 9 8 5 .... .3 1 4 Nov. 15, 1 9 8 6 .... .61/8 Aug. 15, 1987-92. .4 1 4 Feb. 15, 1988-93. .4 May 15, 1989-94. .41/8 Feb. 15, 1990,, , • 31,4 Feb. 15, 1993 ,. , •634 Feb. 15, Nov. 15, .31/2 3,894 4,337 2,467 2,850 1,214 1,204 1,497 2,578 1,898 807 2,702 2,353 981 1,216 3,742 237 1,498 4,164 627 931 3,288 onvertible bonds Investment Series B A pr. 1, 1975-80. .234 2,290 N ote .—D irect public issues only. Based on Daily Statement o f U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions o f dollars) All issues (new capital and refunding) Type o f issue Period Total 1964................. 1965................. 1966................. 1967................. 1968................. 1969................. 1970................. 1971................. Gener al obli gations 10,847 6,417 11,329 7,177 11,405 6,804 14,766 8,985 16,596 9,269 11,881 7,725 18,164 11,850 24,962 15,220 Reve nue HAA1 Issues for new capital Type o f issuer U.S. Govt. loans State Special district O ther2 and stat. auth. 3,585 3,517 3,955 5,013 6,517 3,556 6,082 8,681 637 464 325 477 528 402 131 1,000 208 170 312 334 282 197 103 62 1,628 2,401 2,590 2,842 2,774 3,359 4,174 5,999 3,812 3,784 4,110 4,810 5,946 3,596 5,595 8,714 225 268 5 6 3 8 2 8 4 5 5 4 434 472 374 246 647 468 298 487 425 147 954 549 850 1,226 467 897 1,016 689 572 754 851 969 792 799 690 600 414 1,025 866 895 310 3 1 5 602 47 613 452 552 872 924 824 868 1972—M ar.. . A pr___ M a y ... J u n e ... July. .. Aug.. . Sept.. . O ct.. .. N ov.. . D ec__ 2,239 1,989 2,017 2,270 1,805 1,966 1,726 2,200 1,862 1,797 1,289 1,382 990 989 1,322 820 663 1,662 1,147 872 720 601 1,023 1,064 481 1,138 803 533 711 653 1973—J a n .r .. F e b .. M a r.. . 1,978 1,481 2.353 1,149 766 1,217 826 714 821 209 257 1 Only bonds sold pursuant to 1949 Housing Act, which are secured by contract requiring the Housing Assistance Adm inistration to make annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. 3 Excludes U.S. Govt, loans. Based on date o f delivery to purchaser and payment to issuer, which occurs after date o f sale. 4 W ater, sewer, and other utilities. Total Use o f proceeds deliv e re d 5 Total E du cation Roads and bridges Util ities4 O ther H ous Veter ans’ pur ing5 aid poses 3,392 3,619 3,738 4,473 4,820 3,252 5,062 5,278 688 900 1,476 1,254 1,526 1,432 1,532 2,642 2,437 1,965 1,880 2,404 2,833 1,734 3,525 5,214 727 626 533 645 787 543 466 2,068 120 2,838 50 3,311 3,667 5,867 6,523 4,884 7,526 9,293 2,110 1,950 1,950 2,000 1,796 1,931 1,609 2,147 1,762 1,507 463 490 657 347 327 444 238 444 312 351 134 229 214 150 121 111 107 162 215 21 348 434 306 533 223 429 590 409 365 204 329 10 67 393 154 162 270 52 56 332 838 788 705 576 971 784 404 1,082 814 599 1,847 1,381 2,100 369 365 371 215 63 152 418 399 426 117 10 355 729 544 797 5,407 10,069 10,201 5,144 11,538 10,471 11,303 4,695 14,643 7,115 7,884 16,489 4,926 11,838 18,110 8,399 10,246 24,495 5 Includes urban redevelopment loans. N o te .—The figures in the first column differ from those shown on the following page, which are based on B ond Buyer data. The principal difference is in the treatment o f U.S. Govt, loans. Investment Bankers Assn. data; par am ounts o f long-term issues based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. A 46 SECURITY ISSUES □ MAY 1973 TOTAL NEW ISSUES (In millions o f dollars) Gross proceeds, all issues1 N oncorporate C orporate Period Total U.S. G o v t.2 U.S. Govt. agency3 State and local (U.S.)* Bonds O thers Stock Total Total Publicly offered Privately placed Preferred C om m on 1964...................... 1965...................... 1966...................... 37,122 40,108 45,015 10,656 9,348 8,231 1,205 2,731 6,806 10,544 11,148 11,089 760 889 815 13,957 15,992 18,074 10,865 13,720 15,561 3,623 5,570 8,018 7,243 8,150 7,542 412 725 574 2,679 1,547 1,939 1967...................... 1968...................... 1969...................... 1970....................... 1971....................... 68,514 65,562 52,496 88,666 105,233 19,431 18,025 4,765 14,831 17,325 8,180 7,666 8,617 16,181 16,283 14,288 16,374 11,460 17,762 24,370 1,817 1,531 961 949 2,165 24,798 21,966 26,744 38,945 45,090 21,954 17,383 18,347 30,315 32,123 14,990 10,732 12,734 25,384 24,775 6,964 6,651 5,613 4,931 7,354 885 637 682 1,390 3,670 1,959 3,946 7,714 7,240 9,291 1972—Feb............ M ar........... A pr............ M ay.......... July........... Aug........... Sept........... O ct............ N ov........... D ec........... 7,302 6,556 8,635 9,547 7,588 6,921 7,136 5,635 9,505 10,987 8,210 539 586 2,281 2,360 536 496 606 474 2,530 3,590 2,553 1,325 400 1,090 1,500 300 1,000 1,685 650 1,141 2,134 200 1,942 2,185 1,963 1,924 2,222 1,784 1,898 1,701 1,970 1,816 1,760 126 156 26 165 190 59 54 90 74 70 302 3,369 3,229 3,275 3,597 4,341 3,583 2,893 2,720 3,791 3,377 3,396 2,329 2,253 2,411 2,450 2,556 2,465 1,945 1,651 2,336 2,343 2,625 1,917 1,677 1,622 1,676 1,336 1,807 1,523 862 1,772 1,361 1,024 412 577 789 774 1,218 657 421 789 565 982 1,601 195 282 263 130 612 206 206 305 421 154 272 846 694 601 1,017 1,174 913 743 765 1,033 880 498 1973—J a n .r ........ Feb............ 6,563 7,247 1,199 1,603 993 2,261 1,889 1,445 99 45 2,384 1,894 1,333 923 989 641 344 282 137 150 913 204 Gross proceeds, major groups of corporate issuers Period M anufacturing Commercial and miscellaneous Transportation Bonds Stocks Bonds Stocks Bonds 1964................................................... 2,819 4,712 5,861 228 704 1,208 902 1,153 1,166 220 251 257 944 953 1,856 1967................................................... 9,894 5,668 4,448 9,192 9,426 1,164 1,311 1,904 1,320 2,152 1,950 1,759 1,888 1,963 2,272 117 116 3,022 2,540 2,390 July........................................ A ug....................................... Sept....................................... Oct......................................... N ov....................................... D ec........................................ 428 448 383 607 468 464 192 441 269 346 486 101 155 197 154 299 110 261 162 114 79 103 67 178 235 193 181 77 308 302 192 429 343 1973—J a n . '..................................... Feb........................................ 110 169 63 65 88 13 1971................................................... 1972—Feb........................................ Communication R eal estate and financial Bonds Stocks Bonds Stocks Bonds Stocks 38 60 116 2,139 2,332 3,117 620 604 549 669 808 1,814 1,520 139 189 3,391 3,762 1,747 466 514 193 1,859 1,665 1,899 2,213 1,998 466 1,579 247 47 420 4,217 4,407 5,409 8,016 7,605 718 873 1,326 3,001 4,195 1,786 1,724 1,963 5,053 4,227 193 43 225 83 1,592 2,247 2,159 2,739 3,878 6,601 186 662 1,671 1,638 2,212 104 264 178 281 341 239 342 242 326 271 149 142 102 129 142 171 130 94 61 152 61 214 4 3 3 71 15 30 2 600 354 295 357 520 343 184 598 758 472 370 438 197 177 376 368 390 237 32 313 657 34 60 30 1 16 431 196 12 8 25 388 386 924 381 1,018 455 452 649 522 322 491 1 58 1 17 865 942 562 751 349 949 662 166 887 528 1,057 171 170 190 270 179 200 161 66 187 202 107 105 110 134 83 1 4 526 319 371 277 30 55 3 84 445 284 509 461 1 Gross proceeds are derived by multiplying principal amounts or number o f units by offering price. 2 Includes guaranteed issues. 3 Issues not guaranteed. 4 See note to table at bottom o f preceding page. Stocks Public utility 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ izations. N ote.—Securities and Exchange Commission estimates o f new issues maturing in more than 1 year sold for cash in the United States. MAY 1973 □ SECU RITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation o f change, all issuers1 All securities Period Bonds and notes Com m on and preferred stocks New issues Retirements N et change New issues Retirements N et change New issues Retirements N et change 1967, 1968. 1969. 1970, 1971. 25,964 25,439 28,841 38,707 46,687 7,735 12,377 10,813 9,079 9,507 18,229 13,062 18,027 29,628 37,180 21,299 19,381 19,523 29,495 31,917 5,340 5,418 5,767 6,667 8,190 15,960 13,962 13,755 22,825 23,728 4,664 6,057 9,318 9,213 14,769 2,397 6,959 5,045 2,411 1,318 2,267 -9 0 0 4,272 6,801 13,452 1971-- I I I ................ IV ................ 10,746 11,488 1,992 2,521 8,754 8,967 6,159 8,019 1,649 2,084 4,510 5,935 4,586 3,469 343 437 4,244 3,032 1972-- I ................... I I ................. I l l ................ IV ................. 10,072 11,514 9,776 10,944 2,691 2,389 2,212 2,932 7,381 9,123 7,564 8,012 6,699 7,250 6,118 6,998 2,002 2,191 1,603 2,207 4,698 5,050 4,515 4,790 3,373 4,264 3,659 3,946 690 198 609 725 2,683 4,066 3,049 3,220 Type o f issuer M anu facturing Period Bonds & notes Commercial and other 2 Stocks Transpor tation 3 Public utility Communi cation Real estate and financial 1 Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks 1968......................... 1969.......................... 1970......................... 1971......................... 4,418 3,747 6,641 6,585 -1 ,8 4 2 69 870 2,534 2,242 1,075 853 827 821 1,558 1,778 2,290 987 946 1,104 900 -1 4 9 186 36 800 3,669 4,464 6,861 6,486 892 1,353 2,917 4,206 1,579 1,834 4,806 3,925 120 241 94 1,600 1,069 1,687 2,564 5,005 -7 4 1 866 1,107 2,017 1971—I I I ................ IV ................. 852 1,361 676 453 -1 0 190 678 445 195 -2 7 230 163 1,493 1,749 814 1,183 832 980 1,442 54 1,148 1,683 404 734 1972—1................... I I .................. I l l ................ IV ................. 696 704 479 116 423 851 530 290 31 344 459 575 545 774 673 479 267 127 138 179 15 164 28 47 827 1,844 1,410 1,056 872 1,176 1,061 1,735 1,020 806 573 944 402 464 305 89 1,856 1,233 1,456 1,920 425 638 453 580 1 Excludes investment companies. 2 Extractive and commercial and miscellaneous companies. 3 R ailroad and other transportation companies. N ote.—Securities and Exchange Commission estimates o f cash transactions only. As contrasted with data shown on opposite page, new issues exclude foreign sales and include sales o f securities held by affiliated companies, special offerings to employees, and also new stock issues and cash proceeds connected with conversions o f bonds into stocks. Retirements are defined in the same way and also include securities retired with interaal funds or with proceeds o f issues for that purpose, OPEN-END INVESTMENT COMPANIES (In millions o f dollars) Year Sales and redem ption o f own shares Sales 1 Redemp tions N et sales Assets (m arket value at end o f period) T otal 2 C ash position 3 1960............... 2,097 842 1,255 17,026 973 1961............... 1962............... 1963............... 2,951 2,699 2,460 1,160 1,123 1,504 1,791 1,576 952 22,789 21,271 25,214 980 1,315 1,341 1964............... 1965............... 1966............... 3,404 4,359 4,671 1,875 1,962 2,005 1,528 2,395 2,665 29,116 35,220 34,829 1,329 1.803 2,971 1967................ 1968............... 1969............... 4,670 6,820 6,717 2,745 3,841 3,661 1,927 2,979 3,056 44,701 52,677 48,291 2,566 3,187 3,846 1970................ 1971................ 4,624 5,145 2,987 4,751 1,637 774 47,618 56,694 3,649 3,163 O ther Sales and redem ption o f own shares Sales i 16,053 1972—M a r... A pr.. . M a y .. J u n e .. July . . A ug... Sept... 27,787 O c t.. . 33,417 N ov... 31,858 D ec.. . 42,135 49,490 1973—Jan. .. F e b ... 44,445 M ar... 43,969 53,531 21,809 19,956 23,873 1 Includes contractual and regular single purchase sales, voluntary and contractual accumulation plan sales, and reinvestment o f investment in come dividends; excludes reinvestment o f realized capital gains dividends. 2 M arket value at end o f period less current liabilities. M onth Redem p tions Assets (m arket value at end o f period) N et sales T otal 2 Cash position 3 O ther 472 405 378 393 398 391 310 384 387 449 667 655 585 544 424 582 442 411 645 619 -1 9 5 -2 5 0 -2 0 7 -1 5 1 -2 6 -1 9 1 -1 3 2 -2 7 -2 5 8 -1 7 0 58,740 58,870 59,736 57,708 56,932 58,186 57,193 57,525 59,854 59,831 3,251 2,827 2,763 3.015 3,219 3.375 3,395 3,719 3,549 3,035 55,489 56,043 56,973 54,693 53,713 54,811 53,798 53,806 56,305 56,796 535 327 519 666 530 531 -1 3 1 -2 0 3 -1 2 56,946 54,083 53,377 3.015 3.375 3,774 53,931 50,708 49,603 3 Cash and deposits, receivables, all U.S. G ovt, securities, and other short-term debt securities, less current liabilities. N ote.—Investment Company Institute data based on reports o f mem bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. D ata reflect newly formed companies after their initial offering o f securities. A 48 BUSINESS FINANCE □ MAY 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions o f dollars) Year Profits before taxes In come taxes Profits after taxes Cash divi dends Undis tributed profits Corporate capital consump tion allow ances1 1966............... 1967................ 84.2 79.8 34.3 33.2 49.9 46.6 20.8 21.4 29.1 25.3 39.5 43.0 1968................ 1969................ 1970................ 1971................ 1972................ 87.6 84.9 74.3 83.3 94.3 39.9 40.1 34.1 37.3 41.3 4 7.8 44.8 40.2 45.9 5 3.0 23.6 24.3 24.8 2 5.4 26.4 24.2 20.5 15.4 20.5 26.6 46.8 51.9 55.2 60.3 67.7 Quarter Profits before taxes In come taxes Profits after taxes Cash divi dends Undis tributed profits C orporate capital consum p tion allow ances 1 1971—1 . . . . I I .. . I I I .. . I V ... 81.3 84.5 84.1 83.2 38.0 38.6 37.5 35.3 43.2 45.8 46.6 48.0 25.5 25.4 25.5 25.2 17.7 20.4 21.0 22.7 57.5 59.4 61.2 63.0 1972—1 . . . . II. . . I I I .. . I V '.. 88.2 91.6 95.7 101.5 38.8 40.1 41.8 44.3 49.5 51.5 53.9 57.2 26.0 26.2 26.5 26.7 23.5 25.3 27.3 30.5 64.8 68.0 68.4 69.5 1 Includes depreciation, capital outlays charged to current accounts, and N ote.—D ept, o f Commerce estimates. accidental damages. adjusted annual rates. Quarterly data are at seasonally CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS1 (In billions of dollars) Current assets N et working capital End o f period Total Cash U.S. Govt. securi ties Current liabilities Notes and accts. receivable Notes and accts. payable Inven tories U.S. G ovt.2 Other Other U.S. G o v t.1 Other Accrued Federal income taxes Total Other 1968................................ 1969................................ 182.3 185.7 426.5 473.6 48.2 47.9 11.5 10.6 5.1 4.8 168.8 192.2 166.0 186.4 26.9 31.6 244.2 287.9 6.4 7.3 162.4 196.9 14.3 12.6 61.0 76.0 1970—1........................... I I ......................... I l l ....................... IV ....................... 187.0 185.6 185.3 187.8 477.8 481.8 484.6 490.4 46.1 45.6 46.5 4 9.7 10.4 8 .7 7.1 7 .6 4 .7 4 .4 4 .2 4.2 195.0 197.9 201.0 200.6 189.6 191.8 193.5 196.0 32.1 33.4 32.3 32.4 290.8 296.2 299.3 302.6 7.2 7.0 6.8 6.6 191.0 196.0 196.7 200.5 13.3 10.8 11.5 11.8 79.3 82.4 84.3 83.7 1971—1........................... I I ......................... I l l ....................... IV ....................... 192.0 196.5 200.9 204.9 494.1 498.2 507.2 516.7 48.5 51.1 52.4 55.3 7.8 7 .7 7 .8 10.4 4.2 3.9 3.9 3.5 201.3 203.3 206.5 207.5 198.5 199.2 201.6 203.1 33.8 33.1 34.9 36.8 302.1 301.7 306.3 311.8 6.1 5.3 5.0 4.9 195.7 195.8 197.4 202.8 13.7 12.4 13.8 14.5 86.6 88.3 90.1 89.7 1972—1........................... I I ......................... I l l ........................ IV ........................ 209.6 215.2 219.3 224.3 526.0 534.3 545.5 561.1 55.3 55.7 57.3 60.3 9 .9 8 .7 7 .6 9.7 3.4 2.8 2.9 3.4 211.4 216.3 222.5 228.9 207.2 210.7 215.2 218.2 38.9 40.1 39.8 40.7 316.4 319.1 326.2 336.8 4.9 4.9 4 .7 4 .0 202.5 204.0 207.6 216.9 15.7 13.4 15.0 16.7 93.3 96.8 98.9 99.2 N ote : Based on Securities and Exchange Commission estimates. 1 Receivables from, and payables to, the U.S. Govt, exclude amounts offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions o f dollars) M anufacturing Period Transportation Public utilities Mining Total D urable N on durable Rail road Air Other Electric Commu nications Gas and other O th er1 Total (S.A. A.R.) 1969.......................... 1970......................... 1971......................... 1972......................... 19732....................... 75.56 79.71 81.21 88.44 100.62 15.96 15.80 14.15 15.64 18.70 15.72 16.15 15.84 15.72 18.31 1.86 1.89 2.16 2.45 2.64 1.86 1.78 1.67 1.80 1.68 2.51 3.03 1.88 2.46 2.38 1.68 1.23 1.38 1.46 1.52 8.94 10.65 12.86 14.48 16.87 2.67 2.49 2.44 2.52 2.95 8.30 10.10 10.77 11.89 13.40 16.05 16.59 18.05 20.07 22.16 1971—1 ................... I I ................... I l l ................. IV ................. 17.68 20.60 20.14 22.79 3.11 3.52 3.40 4.12 3.58 4.03 3.91 4.32 .49 .54 .55 .59 .34 .47 .42 .45 .34 .60 .39 .56 .28 .36 .37 .37 2.70 3.20 3.35 3.60 .41 .63 .71 .69 2.50 2.81 2.62 2.84 3.94 4.44 4.42 5.26 79.32 81.61 80.75 83.18 1972—1................... I I ................. I l l ................. IV ................. 19.38 22.01 21.86 25.20 3.29 3.71 3.86 4.77 3.32 3.92 3.87 4.61 .58 .61 .59 .63 .48 .48 .38 .47 .50 .73 .61 .63 .32 .39 .35 .40 3.19 3.61 3.67 4.01 .44 .62 .72 .73 2.72 2.95 2.84 3.39 4.55 4.98 4.97 5.57 86.79 87.12 87.67 91.94 1973—12................. 112................ 21.56 25.27 3.91 4.69 3.99 4.64 .61 .67 .45 .45 .54 .74 .35 .44 3.45 4.02 .48 .72 1 Includes trade, service, construction, finance, and insurance. 2 Anticipated by business. 7. 77 8.89 96.97 100.13 N ote.—D ept, o f Commerce and Securities and Exchange Commission estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. MAY 1973 □ REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions o f dollars) End of period All properties Farm O ther holders2 Finan All cial hold Indi insti U.S. viduals ers tutions 1 agen and cies others Finan Other All cial hold hold insti ers tutions 1 e rs 3 N onfarm 1- to 4-family houses4 All hold ers Total M ultifamily and commercial properties5 Finan. Other insti hold tutions 1 ers Total M ortgage type6 FH A VAunderwritten Finan. O ther hold insti tutions 1 ers Con ven tional 37.6 35.5 20.7 21.0 4.7 2 .4 12.2 12.1 6 .4 4.8 1.5 1.3 4 .9 3 .4 31.2 30.8 18.4 18.6 11.2 12.2 7.2 6 .4 12.9 12.2 8.1 7 .4 4.8 4.7 3 .0 4.3 28.2 26.5 300.1 325.8 347.4 370.2 397.5 425.3 451.2 241.0 264.6 280.8 298.8 319.9 339.1 355.9 11.4 12.4 15.8 18.4 21.7 26.8 33.0 47.7 48.7 50.9 53.0 55.8 59.4 62.8 18.9 21.2 23.3 25.5 27.5 29.5 31.2 7 .0 7.8 8 .4 9.1 9.7 9 .9 10.1 11.9 13.4 14.9 16.3 17.8 19.6 21.1 281.2 304.6 324.1 344.8 370.0 395.9 420.5 197.6 212.9 223.6 236.1 251.2 266.8 280.2 170.3 184.3 192.1 201.8 213.1 223.7 231.3 27.3 28.7 31.5 34.2 38.1 43.2 48.9 83.6 91.6 100.5 108.7 118.7 129.0 140.3 63.7 72.5 80.2 87.9 97.1 105.5 114.5 19.9 19.1 20.3 20.9 21.6 23.5 25.8 77.2 81.2 84.1 88.2 93.4 100.2 109.2 204.0 223.4 240.0 256.6 276.6 295.7 311.3 1970—I I I. , 443.4 IV .. 451.7 349.7 355.9 31.7 33.0 61.9 62.8 30.8 31.2 10.0 10.1 20.8 21.1 412.5 420.5 276.0 280.2 228.4 231.3 47.7 48.9 136.5 140.3 111.4 114.5 25.1 25.8 106.8 109.2 305.7 311.3 1971—1 * ... II * .. III* . IV * . 459.0 471.1 485.6 499.9 361.8 372.0 383.6 394.5 33.6 35.2 37.4 39.4 63.6 63.9 64.6 66.1 31.8 31.9 32.4 32.9 10.1 9 .7 9 .8 9.9 21.6 22.2 22.6 23.0 427.2 439.3 453.2 467.0 283.6 290.9 299.7 307.8 234.4 240.7 248.0 254.2 49.2 50.2 51.8 53.7 143.6 148.3 153.5 159.2 117.3 121.6 125.8 130.5 26.3 26.7 27.7 28.7 111.0 114.4 117.5 120.7 316.2 324.9 335.7 346.3 1972—1 * ... II * .. III*. IV*. 511.7 529.1 546.9 564.5 404.2 418.9 434.2 41.2 42.7 44.3 66.4 67.5 68.4 33.5 34.4 35.1 9.9 10.2 10.4 23.6 24.2 24.7 478.2 494.8 511.9 314.1 324.6 335.1 259.6 268.8 278.4 54.5 55.8 56.7 164.1 170.2 176.8 134.6 140.0 145.4 29.4 30.3 31.4 123.7 126.6 129.0 259.2 269.2 279.9 1941........... 1945........... 196 196 196 196 196 196 197 4 5 6 7 8 9 0 1 Commercial banks (including nondeposit trust companies but not trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. 2 U.S. agencies include former FN M A and, beginning fourth quarter 1968, new G N M A as well as FH A , VA, PH A , Farmers Home Admin., and in earlier years, RFC, HOLC, and FFM C. They also include U.S. sponsored agencies—new FN M A , Federal Land Banks, G N M A (Pools), and the FH LM C . O ther U.S. agencies (amounts small or sep arate data not readily available) included with “individuals and others.” 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. 4 For multifamily and total residential properties, see tables below. 5 Derived figures; includes small amounts o f farm loans held by savings and loan assns. 6 D ata by type o f mortgage on nonfarm 1- to 4-family properties alone are shown in table below. MORTGAGE DEBT OUTSTANDING ON RESIDENTIAL PROPERTIES MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMILY PROPERTIES N ote.—Based on data from Federal Deposit Insurance Corp., Federal Home Loan Bank Board, Institute o f Life Insurance, D epts. o f Agricul ture and Commerce, Federal N ational M ortgage Assn., Federal Housing Admin., Public Housing Admin., Veterans Admin., G overnment N ational M ortgage Assoc., Federal H om e Loan M ortgage Corp., and Comptroller o f the Currency. Figures for first three quarters o f each year are F.R. estimates. (In billions o f dollars) (In billions o f dollars) End o f period Total G overnmen itu;nderwritte ;n All residential M ultifamily i F inan cial insti tutions Other holders Total Finan cial insti tutions Other holders End o f period 1941................. 1945................. 1963................ 1964................ 24.2 24.3 211.2 231.1 14.9 15.7 176.8 195.4 9 .4 8 .6 34.5 35.7 5 .9 5 .7 29.0 33.6 3 .6 3 .5 20.7 25.1 2 .2 2 .2 8.3 8.5 1965................. 1966................. 1967................. 1968................. 1969................. 1970................. 250.1 264.0 280.0 298.6 319.0 338.2 213.2 223.7 236.6 250.8 265.0 277.1 36.9 40.3 4 3 .4 47.8 54.0 61.1 37.2 40.3 43.9 47.3 52.2 58.0 29.0 31.5 34.7 37.7 41.3 45.8 8 .2 8.8 9 .2 9 .7 10.8 12.2 1970—IV ........ 338.2 277.1 61.1 58.0 45.8 12.2 1971—1*......... II* . . . . Ill* . . . I V * .... 343.3 353.1 364.0 374.7 281.4 289.9 298.4 306.1 61.8 63.2 65.6 68.6 59.7 62.1 64.3 66.8 47.1 49.2 50.4 52.0 12.6 12.9 13.9 14.9 1972—I* ......... II * . . . . III* . . . 382.9 395.8 408.9 312.9 324.1 335.6 70.0 71.7 73.3 68.8 71.3 73.8 53.3 55.3 57.3 15.4 16.0 16.5 i Structures o f five or more units. N ote.—Based on data from same source as for “Mortgage Debt Out standing** table. 1964.................................. 1965.................................. 1966.................................. Total Con ven tional Total FH A insured VAguar anteed i 18.6 182.2 197.6 4.3 65.9 69.2 4.1 35.0 38.3 .2 30.9 30.9 14.3 116.3 128.3 212.9 223.6 236.1 251.2 266.8 280.2 73.1 76.1 79.9 84.4 90.2 97.2 42.0 44.8 47.4 50.6 54.5 59.9 31.1 31.3 32.5 33.8 35.7 37.3 139.8 147.6 156.1 166.8 176.6 182.9 1970—I V .......................... 280.2 97.2 59.9 37.3 182.9 I l l * ....................... IV * ........................ 283.6 290.9 299.7 307.8 98.3 100.4 102.9 105.2 61.0 62.8 64.4 65.7 37.3 37.6 38.5 39.5 185.3 190.5 196.8 202.6 314.1 324.6 335.8 107.5 109.6 111.5 66.8 67.6 68.4 40 .7 42 .0 43.1 206.6 215.0 224.3 II* ......................... i Includes outstanding am ount o f VA vendee accounts held by private investors under repurchase agreement. N ote.— F or total debt outstanding, figures are FHLBB and F.R . estimates. F or conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. A 50 REAL ESTATE CREDIT □ MAY 1973 MORTGAGE LOANS HELD BY BANKS (In millions o f dollars) Mutual savings bank holdings 2 Commercial bank holdings 1 Residential Residential O ther nonfarm End o f period Total Total FH A insured VAguar anteed C on ven tional VAguar anteed Con ven tional 566 521 4,812 4,208 12,405 14,377 16,366 17,931 20,505 22,113 2,638 2,911 3,138 3,446 3,758 4,019 40.556 44,617 47,337 50,490 53,456 56,138 36,487 12,287 40,096 13,791 42,242 14,500 44,641 15,074 46,748 15,569 48,682 15,862 11,121 11,408 11,471 11,795 12.033 12,166 2,583 2,589 34,850 22,825 35,131 23,284 4,250 4,351 57,402 57,948 49,628 49,937 7,971 8,146 8,246 8,310 2,595 2,636 2,806 2,980 35,777 37,381 39,228 40,714 23,595 24,477 25,500 26,306 4,486 3,999 4,156 4,205 8,360 8,477 8,515 8,495 2,999 3,141 3,118 3,203 42,578 45,163 48,343 51,084 27,353 28,785 30,415 31,751 4,324 4,547 4,657 4,781 4 5 6 7 8 9 43,976 49,675 54,380 59,019 65,696 70,705 28,933 32,387 34,876 37,642 41,433 44,573 7,315 7,702 7,544 7,709 7,926 7,960 2,742 2,688 2,599 2,696 2,708 2,663 18,876 21,997 24,733 27,237 30,800 33,950 1970—III. IV .. 72,393 73,275 45,318 45,640 7,885 7,919 1971—1 . . . 1 1 .. III. IV. 74,424 76,639 79,936 82,515 46,343 48,163 50,280 52,004 1972—1 . .. 1 1 .. III. IV* 85,614 90,114 95,048 99,314 53,937 56.782 59,976 62.782 196 196 196 196 196 196 FH A insured 1,048 856 3,292 3,395 1 Includes loans held by nondeposit trust companies, but not bank trust depts. 2 D ata for 1941 and 1945, except for totals, are special F.R. estimates. Other non farm Total Total 4,906 4,772 1941........... 1945.......... Farm 3,884 3,387 Farm 900 797 28 24 13,079 14,897 16,272 17,772 19,146 20.654 4,016 4,469 5,041 5,732 6,592 7,342 53 52 53 117 117 114 12,127 21.654 12,008 21,842 7,671 7,893 103 119 58,680 59,643 60,625 61.978 50,553 16,157 12,010 22,386 51,362 16,281 12,011 23,069 51,989 16,216 12.033 23,740 53,027 16,141 12,074 24,812 8,014 8,174 8,561 8,901 113 107 75 50 62.978 64,404 65,901 67.556 53,733 16,184 12,144 54,758 16,256 12,325 55,889 16,130 12,463 57,140 16,013 12,622 25,405 9,195 26,178 9,586 27,296 9,951 28,505 10,354 50 60 61 62 16,017 16,087 N ote.—Second and fourth quarters, Federal D eposit Insurance C orpo ration series for all commercial and m utual savings banks in the United States and possessions. First and third quarters, estimates based on special F.R. interpolations after 1963 or beginning 1964. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions o f dollars) Loans acquired Loans outstanding (end o f period) N onfarm N onfarm Period Total Total Farm FH A insured VAguaranteed Other i Total Total FH A insured Farm VAguaranteed O ther 1945................................................... 976 6,637 5,860 1,394 4,466 766 1964................................................... 1965................................................... 10,433 11,137 10,217 9,386 9,988 9,223 1,812 1,738 1,300 674 553 467 6,900 7,697 7,456 1,047 1,149 994 55,152 60,013 64,609 50,848 55,190 59,369 11,484 12,068 12,351 6,403 6,286 6,201 32,961 36,836 40,817 4,304 4,823 5,240 1968.................................................. 1969.................................................. 1970................................................... 1971................................................... 1972.................................................. 8,470 7,925 7,531 7,181 7,573 8,802 7,633 7,153 6,991 6,867 7,070 8,101 757 733 594 386 322 277 444 346 220 88 101 202 6,432 6,074 6,177 6,393 6,647 7,622 837 772 540 314 503 701 67,516 69,973 72,027 74,375 75,496 77,319 61,947 64,172 66,254 68,726 69,895 71,640 12,161 11,961 11,715 11,419 10,767 9,944 6,122 5,954 5,701 5,394 5,004 4,646 43,664 46,257 48,838 51,913 54,124 57,050 5,569 5,801 5,773 5,649 5,601 5,679 1972—J a n . '..................................... Feb........................................ M ar....................................... A pr........................................ M ay ...................................... Ju n e ...................................... July....................................... Aug....................................... Sept....................................... O ct........................................ N ov....................................... D ec........................................ 469 436 569 560 602 708 655 743 708 718 803 1,830 441 392 484 506 542 643 605 682 663 673 746 1,723 39 26 24 30 15 31 19 19 22 10 28 16 16 12 18 15 13 21 25 21 14 16 13 18 386 354 442 461 514 591 561 642 627 647 705 1,689 28 44 85 54 60 65 50 61 45 45 57 107 75,493 75,456 75,424 75,469 75,493 75,547 75,626 75,723 75,813 75,952 76,207 77,319 69,947 69,940 69,897 69,926 69,941 69,969 70,031 70,105 70,195 70,323 70,567 71,640 10,722 10,674 10,599 10,535 10,467 10,391 10,314 10,224 10,139 10,053 10,000 9,944 4,985 4,952 4,932 4,903 4,873 4,838 4,811 4,776 4,734 4,700 4,668 4,646 54,240 54,314 54,366 54,488 54,601 54,740 54,906 55,105 55,322 55,570 55,899 57,050 5,546 5,516 5,527 5,543 5,552 5,578 5,595 5,618 5,618 5,629 5,640 5,679 1973—Jan ........................................ 711 649 16 20 613 62 77,481 71,856 9,901 4,630 57,325 5,625 1 Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) monthly figures represent book value o f ledger assets, whereas year-end extracting operations are in process. figures represent annual statem ent asset values, and (2) data for year-end N ote.—Institute o f Life Insurance data. F or loans acquired, the adjustments are more complete. Beginning 1970 monthly and year-earlier m onthly figures may not add to annual to tals; and for loans outstanding data are on a statement balance basis. MAY 1973 □ REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Num ber o f loans Period Total amount committed (millions o f (dollars) Averages Loan amount (thousands o f dollars) C ontract interest rate (per cent) M aturity (yrs./mos.) Loanto-value ratio (per cent) Capitaliza tion rate (per cent) D ebt coverage ratio Per cent constant 1968............................. 1969............................. 1970............................. 1971............................. 2,569 1,788 912 1,664 3,244.3 2 ,9 2 0 .7 2,341.1 3,982.5 1,263 1,633 2,567 2,393 7.66 8.69 9.93 9.07 22/11 21/8 22/8 22/10 73.6 73.3 74.7 74.9 9 .0 9 .6 10.8 10.0 1.30 1.29 1.32 1.29 9.5 10.2 11.1 10.4 1971—A pr.................. 137 146 203 183 153 178 112 136 133 302.1 257.3 729.0 386.5 434.4 366.1 198.4 288.2 290.0 2,205 1,762 3,591 2,112 2,839 2,057 1,771 2,119 2,181 8.98 8.91 8.92 8.94 9.08 9.15 9 .20 9.01 8.96 22 23/4 23/8 21/10 23/1 22/6 22/7 23/5 23 75.2 75.6 75.5 74.4 74.9 74.8 75.8 75.6 74.4 9 .9 10.0 9 .8 9 .8 9 .9 9 .8 10.0 9 .9 9 .9 1.28 1.27 1.29 1.26 1.27 1.28 1.28 1.27 1.30 10.4 10.4 10.2 10.4 10.4 10.4 10.4 10.2 10.2 107 122 220 200 246 268 198.6 423.5 530.4 381.1 399.6 683.2 1,856 3,471 2,411 1,906 1,624 2,549 8.78 8.62 8.50 8.44 8.48 8.55 22/1 22/6 24/2 24/6 23/4 23/0 73.3 73.3 76.3 76.3 76.0 75.4 10.0 9 .7 9 .5 9 .5 9 .5 9 .5 1.31 1.31 1.29 1.29 1.26 1.29 10.2 10.0 9 .7 9 .6 9.8 9.8 June................. J u ly ................. Sept................. O ct................... N ov................. Dec.................. 1972—Jan ................... Feb.................. M ar................. A pr.................. Jun e................. N ote.—Life Insurance Association o f America data for new commit ments o f $100,000 and over each on mortgages for multifamily and non residential nonfarm properties located largely in the United States. The 15 companies account for a little more than one-half o f both the total assets and the nonfarm mortgages held by all U.S. life insurance companies. Averages, which are based on number o f loans, vary in part with loan composition by type and location o f property, type and purpose o f loan, and loan amortization and prepayment terms. D ata for the following are limited to cases where information was available or estimates could be made: capitalization rate (net stabilized property earnings divided by property value); debt coverage ratio (net stabilized earnings divided by debt service); and per cent constant (annual level payment, including principal and interest, per $100 o f debt). All statistics exclude construction loans, increases in existing loans in a company’s portfolio, reapprovals, and loans secured by land only. MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions o f dollars) (In millions o f dollars) Advances outstanding (end o f period) Loans outstanding (end o f period) Loans made Period N ew home con struc tion Period 1945............. 1,913 181 196 4 196 5 196 6 24,913 6,638 24,192 6,013 16,924 3,653 196 196 196 197 197 20,122 21,983 21,847 21,383 39,472 7 8 9 0 1 Home pur chase 1,358 T o tal 2 9,604 4,243 4,916 11,215 4,757 11,254 4,150 10,237 6,835 18,811 121,805 130,802 140,347 150,331 174,385 5,791 6,658 7,917 10,178 13,798 6,351 7,012 7,658 8,494 10,848 109,663 117,132 124,772 131,659 149,739 175,838 177,614 180.145 182,711 185,431 188,884 191,642 194,955 197,881 200,554 203,266 206,387 13,976 14,167 14,450 14,697 14,878 15,019 15,153 15,263 15,342 15,378 15,490 15,639 11,013 11,264 11,546 11,789 12,010 12,293 12,606 12,892 13,098 13,334 13,544 13,764 150,849 152,183 154,149 156,225 158,543 161,572 163,883 166,800 169,441 171,842 174,232 176,964 1972—J a n ... Feb.. M ar.. A p r.. M ay. June. Ju ly .. A ug.. Sept.. O c t... N ov.. D e c.r 2,632 2,849 3,910 3,819 4,603 5,449 4,572 5,379 4,689 4,522 4,393 4,591 481 518 712 707 836 872 743 803 739 761 714 667 1,253 1,400 1,861 1,819 2,276 2,920 2,515 3,087 2,587 2,423 2,307 2,167 1973—J a n ... 3,705 592 1,971 208.145 29,571 178,574 1 Includes loans for repairs, additions and alterations, refinancing, etc. not shown separately. 2 Beginning 1958, includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaran teed by the Federal H om e Loan M ortgage Corporation and certain other related items. 3 Beginning 1973, data for these groups available on combined basis only. M em bers’ deposits (end of Short Long period) term 1 term 2 278 213 195 176 19 46 5,007 3,804 4,335 2,866 5,997 6,935 3,074 5,006 2,923 1,929 1,043 1,036 1972......................... 1,527 2,734 5,531 3,256 2,714 4,790 4,076 4,386 5,259 1,861 1,500 9,289 1,929 10,615 5,392 7,936 4,749 7,979 3,985 4,867 8,434 3,081 3,002 2,961 401 392 855 7,534 4,934 5,018 1,432 1,382 1,041 2,331 1,789 2,104 1972—M ar............. A pr.............. M ay............. June............. Ju ly ............. Aug.............. Sept............. O ct............... N ov............. D ec.............. 165 318 260 420 285 406 631 542 445 984 689 396 320 198 222 249 189 233 246 251 5,992 5,913 5,853 6,074 6,138 6,295 6,736 7,045 7,245 7,979 2,125 2,049 2,019 1,944 1,990 2,083 2,307 2,440 2,520 2,961 3,867 3,864 3,835 4,130 4,148 4,212 4,429 4,605 4,725 5,018 2,008 1,762 1,789 1,746 1,497 1,442 1,443 1,334 1,371 2,104 1973—Jan ............... Feb.............. M ar............. 332 415 764 480 302 288 7,831 7,944 8,420 2,805 2,774 2,975 5,025 5,170 5,446 1,306 1,321 1,290 5,376 6,683 89,756 6,398 98,763 6,157 103,001 Repay ments Total VAFH A C on guarin ven sured 3 anteed 3 tional 10,538 101,333 4,894 10,830 110,306 5,145 7,828 114,427 5,269 Ad vances 1968......................... 1969......................... 1970......................... 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities o f more than 1 year but not more than 10 years. N ote.—Federal Home Loan Bank Board data. REAL ESTATE CREDIT □ MAY 1973 A 52 FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS (In millions o f dollars) End o f period FH A in sured Total 196 196 196 197 197 197 5,522 7,167 10,950 15,502 17.791 19.791 7 8 9 0 1 2 VAguaranteed 4,048 1,474 5,121 2,046 7,680 3,270 11,071 4,431 14.624 5'iii* Government-underwritten Conventional hom e loans hom e loans M ortgage commitments M ortgage transactions (during period) M ortgage holdings D ate of auction P ur chases Sales 1,400 1,944 4,121 5,078 3,574 3,684 12 336 213 1972-M ar.. A pr.. M ay. Ju n e. July.. Aug.. Sept.. Oct. . N ov.. D e c .. 18,342 13,654 18,403 13,744 18,599 13,923 18,628 13,952 18,740 14,013 19,023 14,188 19,295 14,380 19,438 14,462 19,619 14,558 19.791 14.624 4,687 4,659 4,674 4,670 4,714 4,816 4,888 4,939 5,016 5,112 316 246 321 223 258 427 401 265 315 307 79 70 7 29 3 1973-Jan... F eb.. M ar.. 19,982 r14,743 r5 , 170 20,181 14,872 5,223 20,571 15,201 5,259 225 218 326 29 M ade during period Out stand ing 1.732 2,696 6,630 8,047 4,986 501 1,287 3,539 5,203 5,694 469 617 1,054 610 515 466 755 887 388 1,086 5,608 5,851 6,153 6,362 6,471 6,309 6,451 6,654 6,562 5,440 392 493 708 6,943 6,911 6,993 M ortgage amounts Offered Average M ortgage Average yield yield am ounts (short (short term term commit com m it Ac Ac ments) Offered ments) cepted cepted In millions of dollars 1972—N ov. 6. 13. 27. 78.7 60.8 49.2 36.2 7.72 7.70 Dec. 4 .. 1 1 .. 2 6.. 82.2 108.7 42.4 66.3 7.68 7.69 74.2 107.0 61.3 92.1 7.69 7.70 128.7 65.4 7.71 110.3 71.6 7.73 1973—Jan. 2. 2 2 ... Feb. M ar. N ote.—F ederal N ational M ortgage Assn. data. Total holdings include conventional loans. D ata prior to Sept. 1968 relate to secondary m arket portfolio o f former FN M A . M ortgage holdings include loans used to back bond issues guaranteed by G N M A . M ortgage commitments made during the period include some multifamily and nonprofit hospital loan commit ments in addition to 1- to 4-family loan commitments accepted in FN M A ’s free m arket auction system, and through the F N M A -G N M A Tandem Plan (Program 18). In per cent 5., 6. 20. 21., 5 .. 6 .. 19.. 21.. 2. 3. 16. 17. Apr. 170.8 107.7 7.75 297.3 168.7 7.81 234.6 145.9 145.9 216.6 190.7 190.7 In millions of dollars In per cent 75.0 68.0 7.90 36.4 30.9 7.87 39.3 25.5 7.84 100.9 62.9 7.89 66.0 49.6 7.92 60.3 44.3 7.95 86.8 56.4 8.02 111.9 81.6 8.11 111.0 N ote.—Average secondary m arket yields are gross—before deduction o f 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FN M A com m it m ent fees and FN M A stock purchase and holding requirements. Begin ning Oct. 18, 1971, the m aturity on new short-term commitments was extended from 3 to 4 months. M ortgage amounts offered by bidders are total eligible bids received. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ACTIVITY GNMA MORTGAGE-BACKED SECURITY PROGRAM (In millions o f dollars) End o f period Total 196 196 196 197 197 197 7 8 9 0 1 2 3,348 4,220 4,820 5,184 5,294 5.113 1972-M ar.. A pr.. M ay. June. Ju ly .. A ug.. Sept.. O ct... N ov.. D ec.. 5,271 5,153 5,241 5,249 5,301 5,405 5,278 5,203 5,152 5.113 1 9 7 3 -Jan .. F eb.. M ar.. 5,117 4,984 4,663 (In millions o f dollars) M ortgage transactions (during period) M ortgage holdings FH A in sured VAguar anteed Pur chases 2,756 3,569 4,220 4,634 592 651 600 550 860 1,089 827 621 393 M ortgage commitments Sales 1 M ade during period Out stand ing 1,045 867 615 897 1,171 1,266 1,131 738 N ote.—G overnmental N ational M ortgage Assn. data. Total holdings include a small am ount o f conventional loans. D ata prior to Sept. 1968 relate to Special Assistance and M anagement and Liquidating portfolios o f former FN M A and include mortgages subject to participation pool o f Government M ortgage Liquidation Trust, but exclude conventional mortgage loans acquired by form er FN M A from the Reconstruction Finance Corporation M ortgage company, the Defense Homes Corp., the Public Housing Admin., and Community Facilities Admin. Pass-through securities Bonds sold Period Applications received Securities issued 1,126.2 4 ,373.6 3,854.5 452.4 2,701.9 2,661.7 1972— Mar. Apr., May. June. July. Aug. Sept. Oct.. Nov. Dec. 528.3 187.8 216.4 245.8 135.5 548.3 192.0 237.8 226.4 440.9 322.5 275.1 212.9 193.2 145.8 140.3 130.9 164.1 138.2 299.8 1973—Jan.. Feb., M ar. 515.7 167.2 339.4 323.3 216.8 139.9 197 0 197 1 197 2 1,315.0 300.0 500.0 N ote.—G overnment N ational M ortgage Assn. data. U nder the M ort gage-Backed Security Program , G N M A guarantees the timely payment o f principal and interest on both pass-through and bond-type securities, which are backed by a pool o f mortgages insured by FH A or Farmers H ome Admin, or guaranteed by VA and issued by an approved mortgagee. To date, bond-type securities have been issued only by FN M A and Federal Home Loan M ortgage Corporation. MAY 1973 □ REAL ESTATE CREDIT HOME-MORTGAGE YIELDS GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE (In per cent) (In millions o f dollars) Secondary m arket Primary market (conventional loans) FH A -insured HUD series (FHA ) FHLBB series i (effective rate) Period A 53 Yield on FH A insured new home loans New homes Existing homes New homes 1968......................... 1969......................... 1970......................... 1971......................... 1972......................... 6.97 7.81 8.44 7.74 7.60 7.03 7.82 8.35 7.67 7.52 7.12 7.99 8.52 7.75 7.64 7.21 8.29 9.03 7.70 7.52 1972—M ar.............. A pr.............. M ay............. June............. J u ly ............. Aug.............. Sept.............. O c t.. . . . . . . D ec.............. 7.52 7.51 7.53 7.55 7.58 7.59 7.57 7.62 7.64 7.66 7.44 7.42 7.46 7.49 7.50 7.52 7.55 7.57 7.57 7.59 7.55 7.60 7.60 7.60 7.65 7.65 7.70 7.70 7.70 7.7 0 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.57 7.57 7.56 1973—J a n .' ........... F e b .' ........... M ar............. 7.68 7.70 7.69 7.68 7.72 7.69 7.70 7.75 7.80 7.55 7.56 7.63 M ortgages Period Total Ex New isting homes homes Pro jects i M ortgages P rop erty im T o tal3 New Ex prove isting homes homes m ents2 1968............. 1969............. 1970............. 1971............. 1972............. 8,689 7,320 7,150 8,275 9,129 11,982 14,689 12,320 1,705 1,729 1,369 1,572 1,551 2,667 3,900 3,459 5,760 4,366 4,516 4,924 5,570 5,447 6,475 4,608 591 583 642 1,123 1,316 3,251 3,641 3,448 634 641 623 656 693 617 674 805 2,652 2,600 3,405 3,774 4,072 3,440 5,961 8,293 876 980 1,143 1,430 1,493 1,311 1,694 2,539 1,776 1,618 2,259 2,343 2,579 2,129 4,267 5,754 1972—M a r.. A p r.. M ay. Ju n e. Ju ly .. A u g .. Sept.. O c t... Nov.. D e c .. 1,293 945 913 1,077 900 1,018 949 862 985 964 349 272 259 271 261 310 245 255 261 190 449 381 369 372 374 440 340 343 331 245 441 241 229 363 218 201 287 170 312 444 54 51 56 71 47 67 77 94 97 85 667 516 613 858 675 776 758 720 790 715 235 173 189 243 183 224 212 204 246 220 432 343 424 615 492 552 546 516 544 495 1973—Jan . . Feb M ar.. 821 254 162 195 324 235 268 184 233 426 59 681 592 596 218 187 185 463 405 411 1966............. N ote.—Annual data are averages o f m onthly figures. The H U D (FH A ) data are based on opinion reports submitted by field offices on prevailing local conditions as o f the first o f the succeeding month. Yields on FHA-insured mortgages are derived from weighted averages o f private secondary m arket prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Gaps in data are due to periods o f adjustment to changes in maximum permis sible contract interest rates. The H U D (FHA) interest rates on conventional first mortgages in primary markets are un weighted and are rounded to the nearest 5 basis points. The FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional firstmortgage terms, p. A-35) and an assumed prepayment at end o f 10 years. V A -guaranteed 1 M onthly figures do not reflect mortgage am endm ents included in annual totals. 2 N ot ordinarily secured by mortgages. 3 Includes refinancing loans, mobile home loans and also a small am ount o f alteration and repair loans, not shown separately, only such loans in amounts o f more than $1,000 need be secured. N ote.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross am ount o f insurance w ritten; V A-guaranteed loans, gross amounts o f loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. F or VA-guaranteed loans, amounts by type are derived from data on num ber and average am ount of loans closed. FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY DELINQUENCY RATES ON HOME MORTGAGES (Per 100 mortgages held or serviced) (In millions o f dollars) Loans not in foreclosure but delinquent for— End o f period Loans in fore closure T otal 30 days 60 days 90 days or more 1965................. 1966................. 1967................. 1968................. 1969................. 1970................. 1971................. 3.29 3.40 3.47 3.17 3.22 3.64 3.93 2.40 2.54 2.66 2.43 2.43 2.67 2.82 .55 .54 .54 .51 .52 .61 .65 .34 .32 .27 .23 .27 .36 .46 .40 .36 .32 .26 .27 .33 .46 1970—1........... I I ......... I l l ----IV ........ 2.96 2.83 3.10 3.64 2.14 2.10 2.26 2.67 .52 .45 .53 .61 .30 .28 .31 .36 .31 .31 .31 .33 1971—1 ........... I I .......... I l l ........ IV ........ 3.21 3.27 3.59 3.93 2.26 2.36 2 .5 4 2.82 .56 .53 .62 .65 .39 .38 .43 .46 .40 .38 .41 .46 1972—1........... I I ......... I l l ........ t\7 i e I V .1 •. 3.16 3.27 3.82 J4.66 \4 .6 5 2.21 2.38 2.74 3.41 3.42 .58 .53 .65 .79 .78 .37 .36 .43 .46 .45 .50 .48 .52 .50 .48 End of period 1 First line is old series; second line is new series. N ote.—M ortgage Bankers Association o f America data from reports on 1- to 4-family FHA-insured, VA-guaranteed, and con ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. M ortgage transactions (during period) M ortgage holdings Total FHAVA C on ven tional P ur chases 1970.................... 325 1971.................... 968 1 972'.................. '1,790 325 821 1,503 147 '287 325 778 1,298 1972—M ar 988 A pr......... 1,110 M ay . . . . 1,324 June........ 1,415 Ju ly ......... 1,475 Aug......... 1,498 Sept......... 1,545 Oct.......... 1,631 N ov......... 1,744 D ec.......... '1,790 928 1,040 1,239 1,344 1,374 1,394 1,408 1,439 1,491 '1,503 60 70 86 71 100 104 137 192 253 '287 98 126 220 194 74 107 66 102 128 143 1,517 1,535 1,503 244 142 287 76 76 143 1973—Jan .......... Feb.......... M ar......... 1,761 1,677 1,790 Sales M ortgage commitments M ade during period O ut stand ing 182 198 64 408 97 11 75 13 9 10 87 258 232 165 117 75 109 136 189 89 93 373 455 398 313 298 263 318 371 293 198 99 150 87 142 166 141 226 300 295 N ote.—F ederal Home Loan M ortgage Corp. data. D ata for 1970 include only the period beginning Nov. 26 when the FH L M C first became operational. Holdings, purchases, and sales include participations as well as whole loans. Mortgage holdings include loans used to back bond issues guaranteed by GNM A. Commitment data cover the conventional and Govt.-underwritten loan programs. A 54 CONSUMER CREDIT □ MAY 1973 TOTAL CREDIT (In millions o f dollars) Instalment End o f period Noninstalm ent Total A uto mobile paper O ther consumer goods paper Repair and m od ernization loans 1 Personal loans Total Single payment loans Charge accounts Service credit T otal 1940. 1945. 1950. 1955. 1960. 8,338 5,665 21,471 38,830 56,141 5,514 2,462 14,703 28,906 42,968 2,071 455 6,074 13,460 17,658 1,827 816 4,799 7,641 11,545 371 182 1,016 1,693 3,148 1,245 1,009 2,814 6,112 10,617 2,824 3,203 6,768 9,924 13,173 800 746 1,821 3,002 4,507 1,471 1,612 3,367 4,795 5,329 553 845 1,580 2,127 3,337 1965. 1966. 1967. 1968. 1969. 89,883 96,239 100,783 110,770 121,146 70,893 76,245 79,428 87,745 97,105 28,437 30,010 29,796 32,948 35,527 18,483 20,732 22,389 24,626 28,313 3,736 3,841 4,008 4,239 4,613 20,237 21,662 23,235 25,932 28,652 18,990 19,994 21,355 23,025 24,041 7,671 7,972 8,558 9,532 9,747 6,430 6,686 7,070 7,193 7,373 4,889 5,336 5,727 6,300 6,921 1970. 1971. 1972. 127,163 138,394 157,564 102,064 111,295 127,332 35,184 38,664 44,129 31,465 34,353 40,080 5,070 5,413 6,201 30,345 32,865 36,922 25,099 27,099 30,232 9,675 10,585 12,256 7,968 8,350 9,002 7,456 8,164 8,974 1972--M a r................................. A pr.................................. M ay ................................ Ju n e................................ July................................. A ug................................. Sept................................. Dec.................................. 137,879 139,410 141,450 143,812 145,214 147,631 148,976 150,576 152,968 157,564 111,257 112,439 114,183 116,365 117,702 119,911 121,193 122,505 124,325 127,332 38,853 39,348 40,063 41,019 41,603 42,323 42,644 43,162 43,674 44,129 33,695 33,981 34,439 35,041 35,470 36,188 36,745 37,216 38,064 40,080 5,437 5,504 5,604 5,717 5,797 5,950 6,049 6,124 6,174 6,201 33,272 33,606 34,077 34,588 34,832 35,450 35,755 36,003 36,413 36,922 26,622 26,971 27,267 27,447 27,512 27,720 27,783 28,071 28,643 30,232 10,843 10,933 11,066 11,181 11,235 11,411 11,541 11,717 11,917 12,256 6,963 7,179 7,464 7,610 7,644 7,717 7,693 7,780 8,010 9,002 8,816 8,859 8,737 8,656 8,633 8,592 8,549 8,574 8,716 8,974 Feb.................................. M ar................................. 157,227 157,582 159,320 127,368 127,959 129,375 44,353 44,817 45,610 39,952 39,795 39,951 6,193 6,239 6,328 36,870 37,108 37,486 29,859 29,623 29,945 12,204 12,409 12,540 8,357 7,646 7,702 9,298 9,568 9,703 1973- 1 Holdings o f financial institutions; holdings o f retail outlets are ineluded in “ other consumer goods paper.” hold, family, and other personal expenditures, except real estate mortgage loans. For back figures and description o f the data, see “ Consumer Credit,” Section 16 (New) o f Supplement to Banking and M onetary S tatistics, 1965 and B u lle tin s for Dec. 1968 and Oct. 1972. N ote.—Consumer credit estimates cover loans to individuals for house- INSTALMENT CREDIT (In millions of dollars) Financial institutions End o f period Total Total Com mercial banks Finance compa nies 1 Credit unions Retail outlets Mis cellaneous lenders 1 Total Auto* mobile dealers 2 Other retail outlets 1940. 1945. 1950. 1955. 1960. 5,514 2,462 14,703 28,906 42,968 3,918 1,776 11,805 24,398 36,673 1,452 745 5,798 10,601 16,672 2,278 910 5,315 11,838 15,435 171 102 590 1,678 3,923 17 19 102 281 643 1,596 686 2,898 4,508 6,295 167 28 287 487 359 1,429 658 2,611 4,021 5,936 1965 1966 1967. 1968. 1969. 70,893 76,245 79,428 87,745 97,105 61,102 65,430 67,944 75,727 83,989 28,962 31,319 33,152 37,936 42,421 23,851 24,796 24,576 26,074 27,846 7,324 8,255 9,003 10,300 12,028 965 1,060 1,213 1,417 1,694 9,791 10,815 11,484 12,018 13,116 315 277 287 281 250 9,476 10,538 11,197 11,737 12,866 1970 1971, 1972. 102,064 111,295 127,332 88,164 97,144 111,382 45,398 51,240 59,783 27,678 28,883 32,088 12,986 14,770 16,913 2,102 2,251 2,598 13,900 14,151 15,950 218 226 261 13,682 13,925 15,689 1972- 111,257 112,439 114,183 116,365 117,702 119,911 121,193 122,505 124,325 127,332 97,934 99,139 100,840 102,909 104,132 106,146 107,278 108,405 109,673 111,382 51,782 52,629 53,624 54,883 55,688 56,846 57,566 58,266 58,878 59,783 28,716 28,955 29,310 29,722 30,065 30,464 30,650 30,970 31,427 32,088 14,910 15,083 15,395 15,786 15,910 16,278 16,439 16,556 16,742 16,913 2,526 2,472 2,511 2,518 2,469 2,558 2,623 2,613 2,626 2,598 13,323 13,300 13,343 13,456 13,570 13,765 13,915 14,100 14,652 15,950 228 232 237 243 248 251 253 257 259 261 13,095 13,068 13,106 13,213 13,322 13,514 13,662 13,843 14,393 15,689 127,368 127,959 129,375 111,690 112,630 114,190 60,148 60,582 61,388 32,177 32,431 32,750 16,847 16,973 17,239 2,518 2,644 2,813 15,678 15,329 15,185 263 266 272 15,415 15,063 14,913 1973Feb........................................................ 2 Automobile paper only; other instalment credit held by automobile 1 Finance companies consist o f those institutions formerly classified as sales finance, consumer finance, and other finance companies. Mis dealers is included with “ other retail outlets.” cellaneous lenders include savings and loan associations and m utual savings banks. See also N ote to table above. MAY 1973 □ CONSUMER CREDIT A 55 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions o f dollars) Commercial banks Other consumer goods paper Automobile paper End o f period Finance companies 1 Total Pur chased D irect Mobile homes Credit cards Other Repair and modern ization loans Per sonal loans Total A uto mobile paper O ther consumer goods paper M obile homes Other Repair and modern ization loans Per sonal loans 1945............. 1950............. 1955............. 1960............. 1940........... 1,452 745 5,798 10,601 16,672 339 66 1,177 3,243 5,316 276 143 1,294 2,062 2,820 232 114 1,456 2,042 2,759 165 110 834 1,338 2,200 440 312 1,037 1,916 3,577 2,278 910 5,315 11,838 15,435 1,253 202 3,157 7,108 7,703 159 40 692 1,448 2,553 193 62 80 42 173 673 606 1,386 3,240 5,006 196 196 196 196 196 5 6 7 8 9 28,962 31,319 33,152 37,936 42,421 10,209 11,024 10,972 12,324 13,133 5,659 5,956 6,232 7,102 7,791 4,166 4,681 5,469 1,307 2,639 5,387 6,082 2,571 2,647 2,731 2,858 2,996 6,357 7,011 7,748 8,958 9,780 23,851 24,796 24,576 26,074 27,846 9,218 9,342 8,627 9,003 9,412 4,343 4,925 5,069 5,424 5,775 232 214 192 166 174 10,058 10,315 10,688 11.481 12,485 197 0 197 1 197 2 45,398 51,240 59,783 12,918 13,837 16.320 7,888 9,277 10.776 4,423 5.786 3,792 4,419 5.288 7,113 4,501 5.122 3,071 3,236 3.544 10,616 11,547 12.947 27,678 28,883 32.088 9,044 9,577 10.174 2,464 2,561 2.916 3,237 3,052 3.589 199 247 497 12,734 13,446 14.912 1972—M ar.. Apr.. May. June. July. Aug.. Sept. O ct.. Nov. D ec.. 51.782 52,629 53,624 54,883 55,688 56,846 57,566 58,266 58,878 59.783 14,017 14,232 14,530 14,938 15,244 15,566 15,754 15,996 16,180 16.320 9,442 9,613 9,824 10,060 10,193 10,331 10,381 10,534 10,674 10.776 4,602 4,703 4,842 5,023 5,144 5,321 5,471 5,590 5,690 5.786 4,264 4,325 4,374 4,463 4,517 4,631 4,750 4,782 4,868 5.288 4,585 4,683 4,772 4,859 4,903 5,003 5,030 5,053 5,063 5.122 3,201 3,244 3,303 3,372 3,410 3,479 3,522 3,555 3,557 3.544 11,671 11,829 11,979 12,168 12,277 12,515 12,658 12,756 12,846 12.947 28,716 28,955 29,310 29,722 30,065 30,464 30,650 30,970 31,427 32.088 9,324 9,373 9,453 9,612 9,714 9,822 9,835 9,914 10,026 10.174 2,587 2,614 2,649 2,687 2,725 2,773 2,820 2,862 2,899 2.916 3,063 3,076 3,153 3,216 3,270 3,318 3,367 3,430 3,476 3.589 261 276 281 290 325 358 383 412 452 497 13.481 13,616 13,774 13,917 14,031 14,193 14,245 14,352 14,574 14.912 1973—Jan.. Feb.. M ar.. 60,148 60,582 61,388 16,464 16,680 16,951 10,889 10,977 11,216 5,839 5,932 6,035 5,311 5,283 5,243 5,135 5,158 5,289 3,527 3,515 3,538 12,983 13,037 13,116 32,177 32,431 32,750 10,177 10,267 10,419 2,928 2,909 2,943 3,644 3,752 3,796 528 562 581 14,900 14,941 15,011 1 Finance companies consist o f those institutions formerly classified as sales finance, consumer finance, and other finance companies. See also N ote to table at top o f preceding page. INSTALMENT CREDIT HELD BY OTHER FINANCIAL LENDERS NONINSTALMENT CREDIT (In millions o f dollars) (In millions of dollars) End o f period Total A uto mobile paper O ther con sumer goods paper Repair and m odern ization loans Per sonal loans 1940................................... 1945................................... 1950................................... 1955................................... 1960................................... 188 121 692 1,959 4,566 36 16 159 560 1,460 7 4 40 130 297 13 10 102 313 775 132 91 391 956 2,034 1965................................... 1966................................... 1967................................... 1968................................... 1969................................... 8,289 9,315 10,216 11,717 13,722 3,036 3,411 3,678 4,238 4,941 498 588 654 771 951 933 980 1,085 1,215 1,443 3,822 4,336 4,799 5,493 6,387 1970................................... 1971................................... 1972................................... 15,088 17,021 19,511 5,116 5,747 6,598 1,177 1,472 1,690 1,800 1,930 2,160 6,995 7,872 9,063 1972—M ar....................... A pr........................ M ay ...................... Ju n e ...................... Ju ly ....................... Aug........................ Sept....................... O ct......................... N ov........................ D ec........................ 17,436 17,555 17,906 18,304 18,379 18,836 19,062 19,169 19,368 19,511 5,842 5,898 6,019 6,166 6,204 6,353 6,421 6,461 6,535 6,598 1,499 1,512 1,543 1,580 1,589 1,628 1,645 1,656 1,675 1,690 1,975 1,984 2,020 2,055 2,062 2,113 2,144 2,157 2,165 2,160 8,120 8,161 8,324 8,503 8,524 8,742 8,852 8,895 8,993 9,063 1973—Jan ......................... Feb........................ M ar....................... 19,365 19,617 20,052 6,560 6,627 6,752 1,680 1,698 1,732 2,138 2,162 2,209 8,987 9,130 9,359 N ote.—Other financial lenders consist o f credit unions and miscel laneous lenders. Miscellaneous lenders include savings and loan associa tions and m utual savings banks. Single payment loans Charge accounts Total Service credit Com mer cial banks O ther finan cial insti tutions Retail outlets Credit cards 1 2,824 3,203 6,768 9,924 13,173 636 674 1,576 2,635 3,884 164 72 245 367 623 1,471 1,612 3,291 4,579 4,893 76 216 436 553 845 1,580 2,127 3,337 18,990 19,994 21,355 23,025 24,041 6,690 6,946 7,478 8,374 8,553 981 1,026 1,080 1,158 1,194 5,724 5,812 6,041 5,966 5,936 706 874 1,029 1,227 1,437 4,889 5,336 5,727 6,300 6,921 25,099 27,099 30,232 8,469 9*316 10,857 1,206 1,269 1,399 6,163 6,397 7,055 1,805 1,953 1,947 7,456 8,164 8,974 26,622 26,971 27,267 27,447 27,512 27,720 27,783 28,071 28,643 30,232 9,491 9,594 9,717 9,831 9,900 10,053 10,165 10,339 10,527 10,857 1,352 1,339 1,349 1,350 1,335 1,358 1,376 1,378 1,390 1,399 5,102 5,296 5,587 5,689 5,664 5,676 5,613 5,794 6,081 7,055 1,861 1,883 1,877 1,921 1,980 2,041 2,080 1,986 1,929 1,947 8,816 8,859 8,737 8,656 8,633 8,592 8,549 8,574 8,716 8,974 1973—J a n . . .. 29,859 F e b .... 29,623 M a r.... 29,945 10,825 10,989 11,074 1,379 1,420 1,466 6,402 5,735 5,825 1,955 1,911 1,877 9,298 9,568 9,703 End o f period 1940................. 1945................. 1972—M ar.... A pr__ M a y ... J u n e ... J u ly ... Aug— S ep t.. . O c t.. . . N ov.. . . D ec__ i Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank credit card accounts outstanding are included in estimates o f instalment credit outstanding. See also N ote to table at top o f preceding page. A 56 CONSUM ER CREDIT □ MAY 1973 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions o f dollars) Total Automobile paper O ther consumer goods paper Period S.A .i N.S.A. S.A.1 N.S.A. S.A .i N.S.A. R epair and m odernization loans S.A .i N.S.A. Personal loans S.A .i N.S.A. Extensions 196 196 196 196 196 197 197 197 78,661 82,832 87,171 99,984 109,146 112,158 124,281 142,951 5 6 7 8 9 0 1 2 27,208 27,192 26,320 31,083 32,553 29,794 34,873 40,194 22,857 26,329 29,504 33,507 38,332 43,873 47,821 55,599 2,270 2,223 2,369 2,534 2,831 2,963 3,244 4,006 26,326 27,088 28,978 32,860 35,430 35,528 38,343 43,152 1972—M ar.. A pr.. M ay. Ju n e. J u ly .. A ug.. Sept.. O c t.. N ov.. D ec.. 11,741 11,374 11.687 12,057 11.687 12,484 11,953 12,404 12,846 12,627 11,746 11,224 12,556 13,096 11,833 13,166 11,535 12,337 12,806 13,643 3,176 3,162 3,274 3,412 3,298 3,491 3,368 3,504 3,620 3,763 3,363 3,269 3,699 3,938 3,480 3,696 3,110 3,663 3,505 3,195 4,453 4,370 4,393 4,577 4,684 4,990 4,772 4,971 5,118 4,876 4,337 4,158 4,593 4,779 4,544 5,094 4,695 4,831 5,202 6,171 323 331 334 351 328 371 340 335 327 351 303 326 399 403 358 431 360 347 321 280 3,789 3,511 3,686 3,717 3,377 3,632 3,473 3,594 3,781 3,637 3,743 3,471 3,865 3,976 3,451 3,945 3,370 3,496 3,778 3,997 1973—Ja n ... Feb.. M ar.. 13,304 13,434 13,852 11,923 11,214 13,681 4,006 3,972 4,001 3,393 3,407 4,164 5,282 5,245 5,349 4,949 4,252 5,169 329 364 406 259 300 377 3,687 3,853 4,096 3,322 3,255 3,971 Repayments 196 196 196 196 196 197 197 197 70,463 77,480 83,988 91,667 99,786 107,199 115,050 126,914 5 6 7 8 9 0 1 2 1972— M ar.. A p r .. M ay. Ju ne. J u ly .. A u g.. Sept.. O ct.. . N o v .. D e c .. 1973— J a n ... Feb.. M ar.. 23,706 25,619 26,534 27,931 29,974 30,137 31,393 34,729 20,707 24,080 27,847 31,270 34,645 40,721 44,933 49,872 23,938 25,663 27,405 30,163 32,710 33,835 35,823 39,095 2,112 2,118 2,202 2,303 2,457 2,506 2,901 3,218 10,427 10,384 10.355 10,671 10,593 10,841 10,667 10,908 11,128 10,964 10,999 10,042 10,812 10,914 10,496 10,957 10,253 11,025 10,986 10,636 2,831 2,867 2,819 2,922 2,917 2,896 2,873 3,041 3,023 2,977 3,026 2,774 2,984 2,982 2,896 2,976 2,789 3,145 2,993 2,740 3,944 3,986 3,981 4,164 4,249 4,395 4,303 4,354 4,444 4,341 4,221 3,872 4,135 4,177 4,115 4,376 4,138 4,360 4,354 4,155 262 268 287 283 279 270 263 263 271 263 269 259 299 290 278 278 261 272 271 253 3,390 3,263 3,268 3,302 3,148 3,280 3,228 3,250 3,390 3,383 3,483 3,137 3,394 3,465 3,207 3,327 3,065 3,248 3,368 3,488 11.355 11,437 11,808 11,887 10,623 12,265 3,097 3,145 3,225 3,169 2,943 3,371 4,649 4,627 4,755 5,077 4,409 5,013 267 275 286 267 254 288 3,342 3,390 3,542 3,374 3,017 3,593 N et change in credit outstanding 2 8,198 5,352 3,183 8,317 9,360 4,959 9,231 16,037 1965. 1966. 1967. 1968. 1969. 1970. 1971. 1972. 3,502 1,573 -2 1 4 3,152 2,579 -3 4 3 3,480 5,465 2,388 1,425 1,573 2,697 2,720 1,693 2,520 4,057 158 105 167 231 374 457 343 788 2,150 2,249 1,657 2,237 3,687 3,152 2,888 5,727 1972—M ar.. A p r.. M ay. June. Ju ly .. Aug.. Sept.. O c t... Nov.. D e c.. 314 990 332 386 094 643 286 496 718 663 747 1,182 1,744 2,182 1,337 2,209 1,282 1,312 1,820 3,007 345 295 455 490 381 595 495 463 597 786 337 495 715 956 584 720 321 518 512 455 509 384 412 413 435 595 469 617 674 535 116 286 458 602 429 718 557 471 848 2,016 61 63 47 68 49 101 77 72 56 34 67 100 113 80 153 99 75 50 27 399 248 418 415 229 352 245 344 391 254 260 334 471 511 244 618 305 248 410 509 1973—Jan ... Feb.. M ar.. 949 997 044 36 591 1,416 909 827 776 224 464 793 633 618 594 -1 2 8 -1 5 7 156 62 89 120 46 89 345 463 554 -5 2 238 378 1 Includes adjustments for differences in trading days. 2 N et changes in credit outstanding are equal to extensions less re payments. N ote.—Estimates are based on accounting records and often include financing charges. Renewals and refinancing o f loans, purchases and sales o f instalment paper, and certain other transactions may increase the am ount o f extensions and repayments without affecting the am ount outstanding. F o r back figures and description of the data, see “ C onsum er C redit,” Section 16 (N ew ) of S u p p le m e n t to B a n k in g a n d M o n e ta ry S ta tistics , 1965 and B u lle tin s for Dec. 1968 and Oct. 1972. MAY 1973 □ CONSUM ER CREDIT A 57 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) T otal Finance companies Commercial banks O ther financial lenders Retail outlets Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A .i N.S.A. S.A.1 N.S.A. Extensions 1965............................................. 1966............................................. 1967............................................. 1968............................................. 1969............................................. 1970............................................. 1971............................................. 1972............................................ 78,661 82,832 87,171 99,984 109,146 112,158 124,281 142,951 29,528 30,073 31,382 37,395 40,955 42,960 51,237 59,339 25,265 25,897 26,461 30,261 32,753 31,952 32,935 38,464 14,430 16,494 18,090 19,122 20,240 21,526 22,143 24,541 9,438 10,368 11,238 13,206 15,198 15,720 17,966 20,607 1972—M ar................................. A pr.................................. M ay ................................ Ju n e ................................ July................................. Aug................................. Sept................................. Oct.................................. Nov................................. D ec................................. 11,741 11,374 11,687 12,057 11,687 12,484 11,953 12,404 12,846 12,627 11,746 11,224 12,556 13,096 11,833 13,166 11,535 12,337 12,806 13,643 4,622 4,644 4,817 5,098 4,926 5,349 4,972 5,227 5,413 5,313 4,777 4,780 5,335 5,617 5,103 5,644 4,852 5,224 5,059 5,096 3,197 3,196 3,244 3,196 3,107 3,285 3,181 3,334 3,434 3,355 3,173 3,071 3,410 3,479 3,184 3,433 2,971 3,348 3,581 3,766 1,887 1,582 1,674 1,792 1,506 1,788 1,731 1,705 1,792 1,791 1,874 1,564 1,879 2,036 1,580 2,014 1,683 1,679 1,704 1,642 2,035 1,952 1,952 1,971 2,148 2,062 2,069 2,138 2,207 2,168 1,922 1,809 1,932 1,964 1,966 2,075 2,029 2,086 2,462 3,139 1973—Jan ................................... Feb.................................. M ar................................. 13,304 13,434 13,852 11,923 11,214 13,681 5,762 5,664 5,853 5,246 4,826 5,890 3,517 3,557 3,654 3,033 2,972 3,598 1,706 1,964 2,131 1,509 1,711 2,083 2,319 2,249 2,214 2,135 1,705 2,110 Repayments 25,663 27,716 29,549 32,611 36,470 40,398 45,395 50,796 70,463 77,480 83,988 91,667 99,786 107,199 115,050 126,914 1965............................................. 1966............................................. 1967............................................. 1968............................................. 1969............................................. 1970.................................. .......... 1971............................................. 1972............................................ 23,056 24,952 26,681 28,763 30,981 31,705 31,730 35,259 8,311 9,342 10,337 11,705 13,193 14,354 16,033 18,117 13,433 15,470 17,421 18,588 19,142 20,742 21,892 22,742 1972—M ar................................. A pr.................................. M ay................................ Ju n e ................................ July................................. Aug................................. Sept................................. Oct................................... N ov................................. D ec.................................. 10,427 10,384 10,355 10,671 10,593 10,841 10,667 10,908 11,128 10,964 10,999 10,042 10,812 10,914 10,496 10,957 10,253 11,025 10,986 10,636 3,983 4,073 4,121 4,250 4,366 4,414 4,221 4,408 4,531 4,485 4,259 3,933 4,340 4,358 4,298 4,486 4,132 4,524 4,447 4,191 2,971 2,948 2,918 2,971 2,883 3,021 2,938 3,023 3,061 2,952 3,152 2,832 3,055 3,067 2,841 3,034 2,785 3,028 3,124 3,105 1,605 1,507 1,459 1,566 1,419 1,510 1,533 1,550 1,578 1,561 1,614 1,445 1,528 1,638 1,505 1,557 1,457 1,572 1,505 1,499 1,868 1,856 1,857 1,884 1,925 1,896 1,975 1,927 1,958 1,966 1,974 1,832 1,889 1,851 1,852 1,880 1,879 1,901 1,910 1,841 1973—Jan ................................... Feb.................................. M ar................................. 11,355 11,437 11,808 11,887 10,623 12,265 4,734 4,684 4,870 4,881 4,392 5,084 3,033 3,030 3,141 2,944 2,718 3,279 1,532 1,625 1,665 1,655 1,459 1,648 2,056 2,098 2,132 2,407 2,054 2,254 N et change in credit outstanding 2 1965............................................. 1966............................................. 1967............................................. 1968............................................. 1969............................................. 1970............................................. 1971............................................. 1972............................................. 3,865 2,357 1,833 4,784 4*485 2,977 5,842 8,543 8,198 5,352 3,183 8,317 9,360 4,959 9,231 16,037 1,127 1,026 901 1,501 2,005 1,366 1,933 2,490 2,209 *945 —220 1,498 1 *772 —168 1,205 3*205 997 1,024 669 534 1,098 784 251 1,799 July................................. A ug................................. Sept................................. Oct................................... N ov................................. D ec.................................. 1,314 990 1,332 1,386 1,094 1,643 1,286 1,496 1,718 1,663 747 1,182 1,744 2,182 1,337 2,209 1,282 1,312 1,820 3,007 639 571 696 848 560 935 751 819 882 828 518 847 995 1,259 805 1,158 720 700 612 905 226 248 326 225 224 264 243 311 373 403 21 239 355 412 343 399 186 320 457 661 282 75 215 226 87 278 198 155 214 230 260 119 351 398 75 457 226 107 199 143 167 96 95 87 223 166 94 211 249 202 -5 2 -2 3 43 113 114 195 150 185 552 1,298 1973—Jan................................... F eb.................................. M ar................................. 1,949 1,997 2,044 36 591 1,416 1,028 980 983 365 434 806 484 527 513 89 254 319 174 339 466 -1 4 6 252 435 263 151 82 -2 7 2 -3 4 9 -1 4 4 1972—M ar................................. A pr.................................. M ay ................................ 1 Includes adjustments for differences in trading days. 2 N et changes in credit outstanding are equal to extensions less re payments, except in certain months when data for extensions and repay ments have been adjusted to eliminate duplication resulting from large transfers o f paper. In those m onths the differences between extensions and repayments for some particular holders do not equal the changes in their outstanding credit. Such transfers do not affect total instalment credit extended, repaid, or outstanding. N ote.—Other financial lenders include credit unions and miscellane ous lenders. See also N ote to preceding table and footnote 1 at bottom o f p. A-54. A 58 INDUSTRIAL PRODUCTION: S.A. □ MAY 1973 MARKET GROUPINGS (1967= 100) G rouping T otal index...................................... Products, to ta l..................................... Final produ cts .................................. Consumer goods......................... Equipm ent................................... Interm ediate products................... M aterials.............................................. 1967 p ro por tion 1972 aver age* 1972 M ar. Apr. M ay 100.00 114.4 111.2 112.8 113.2 62.21 113.1 110.1 4 8 .9 5 1 1 1 .2 10 8 .2 June July 113.4 113.9 1973 Aug. Sept. 115.0 116.1 Oct. Nov. Dec. 117.5 118.5 119.2 119.9 J a n .r Feb. M ar. 121.1 121.8 111.4 112.1 112.0 112.2 113.3 114.4 115.9 117.3 117.5 118.6 119.5 120.0 109. 1 1 0 .2 110.1 1 10.1 111 .3 1 1 2 .4 1 1 3 .9 11 5 .0 1 1 5 .3 28.53 123.1 119.6 122.0 122.2 122.1 122.0 123.1 124.4 125.6 126.8 126.7 92.4 92.7 93.4 93.3 93.4 94.8 95.8| 97.3 98.5 99 .4 20.42 94.5 13.26 120.5 117.3 117.3 119.3 119.1 120.5 121.2 121.7 123.4 125.9 125 37.79 116.4 113.1 115.0 115.6 116.1 116.8 117.4 119.1 120.3 120.6 122.0 1 1 6 .4 1 1 7 .3 127.5 101.0 126.5 121.7 128.2 129.1 102.2 102.3 127.7 127.5 123.9 124.7 1 3 4 .6 1 3 7 .3 1 1 7 .9 Consumer goods D urable consumer g o o d s ..................... Automotive products...................... A utos............................................. Auto parts and allied g o o d s.. ., 7 .8 6 1 2 5 .4 1 1 8 .9 1 2 5 .9 1 2 5 .3 2 .84 127.1 119.3 128.9 127.4 1.87 112.7 104.6 114.3 111.3 .97 154.7 147.5 157.0 158.3 1 2 6 .0 1 2 3 .9 125.7 124.7 108.2 108.2 159.3 156.9 125. 12 5 .4 1 2 8 .3 127.1 124.8 130.3 109.5 109.6 116.9 160.9 153.9 156.1 1 3 0 .7 1 3 3 .9 1 3 9 .7 137.5 142.0 134.9 140.3 142.9 126.6 133.9 126.0 131.5 130.8 158.6 158.0 151.9 157.4 166.2 H om e g oods........................................ . Appliances, TV, and ra d io s.......... Appliances and A /C ............... TV and home audio .............. . Carpeting and furniture................. Misc. home go o d s........................... 5.02 1.41 .92 .49 1.08 2.53 124.5 127.1 144.5 87.5 132.6 121.0 118.7 115.1 131.9 84.0 127.1 117.2 124.2 132.2 149.3 100.1 131.3 116.9 124.3 126.1 129.3 125.9 148.2 141.2 93.7 97.2 132.0 134.0 118.2 122.9 123.5 125.1 125.7 121.6 119.7 123.1 138.5 141.8 142.8 89.9 78.6 86.1 132.6 138.4 134.5 120.6 122.4 123.4 127.2 126.9 129.1 134.5 135.7 137.8 124.0 121.8 133.0 140.7 138.6 143.3 147.8 141.9 151.0 153.2 154.8 157.4 83.9 99.9 79.4 137.6 137.6 139.0 142.1 143.7 144.7 124.5 125.2 1 2 2 .8 127.5 130.7 132.0 Nondurable consumer g o o d s ............... 2 0 .6 7 12 2 .2 1 1 9 .9 1 2 0 .5 1 2 1 .0 12 0.6 1 2 1 .3 7. 2.64 1.91 3.43 2.25 135.0 144.3 114.7 139.2 147.5 132.0 141.4 113.9 134.9 142.3 132.8 145.4 111.4 134.8 142.1 133.1 132.2 144.8 140.2 111.1 112.5 136.3 136. 143.2 145.0 1 2 .7 4 1 0 4 .3 10 1.3 10 1 .3 1 0 2 .5 1 0 2 .4 Clothing............................................. Consumer staples........................... . Consumer foods and to b a c co .. N onfood staples......................... . Consumer chemical products, Consumer paper p ro d u c ts..., Consumer fuel and lighting.. Residential utilities............ . 4.32 107.8 105.0 105.0 106.2 16.34 126.0 123.9 124.6 124.9 8.37 117.4 116.3 116.8 117.2 122.1 1 2 3 .9 1 2 4 .5 12 5 .3 133.6 141.3 112.5 139.4 147.0 133 141.7 112.2 139.8 147.5 137.2 146.4 115.6 141.9 150.3 138.3 145.0 118.6 144.0 152.1 102.1 10 5 .0 9 9 .9 1 0 6 .7 1 0 8 .5 1 2 3 .9 124. 124 1 2 5 .2 138.6 143.9 119.3 145.1 154.5 138.2 142.5 119.5 145.2 155.6 140.7 147.4 117.7 148.3 158.5 138.7 145.6 119.4 143.9 154.1 139.7 148.5 118.1 144.9 154.6 110.1 111.1 11 4 .2 11 5 .4 1 1 6 .0 106.8 108.0 109.1 110.0 110.3 110.4 109.0 108.0 109.9 124.3 124. 125.5 127.6 128.2 129.2 127. 129.2 128.7 1*28 .*9 116.8 116.4 117.6 118.5 118.5 120.3 117.7 118.2 119.2 118.7 Equipment Business equipm ent ............................... 97.2 96.7 98.3 98.0 86.7 87.1 123.5 120.5 Industrial equipm ent..................... . Building and mining equip. M anufacturing equipm ent......... Power equipm ent......................... 6.77 99.3 96.3 95.7 96.3 1.45 101.9 101.2 98.4 97.0 3.85 88.6 84.5 84.9 85.9 1.47 124.6 122.0 121.4 122.8 Commercial, transit, farm e q . . . . , Commercial e q u ip m en t............. Transit equipm ent..................... . Farm equipm ent.......................... 5.97 110.0 107.0 107.6 109.6 108.4 108.3 3.30 117.8 114.7 114.1 116.4 116.7 117.3 2.00 96.7 95.4 97.0 98.9 94.4 92.5 .67 110.6 103.5 106.8 108.2 109.7 111.2 Defense and space equipm ent ........... . Military products........................... . 7 .6 8 5.15 7 8 .2 7 7 .6 80.6 80.7 7 8 .5 81.3 102.8 103.7 105.8 107.3 109.0 104.8 105.7 105.4 104.2 108.0 108.6 89.4 92.6 94.0 96.9 98.5 100.9 122.4 126.3 127.2 130. 129.6 130.6 109.9 109.2 101.9 131.4 111.0 110.5 103.0 132.3 121.7 129.9 110.3 114.3 110.7 111.2 113.8 120.0 121.5 122.7 93.0 93.1 96.8 117.7 114.7 120.3 115.3 123.2 101.9 116.3 115.4 122.6 101.7 120.0 120.0 126.3 110.0 118.3 121.9 129.0 111. 117.6 77.7 79.3 7 9 .3 8 0 .1 8 0 .3 7 9 .8 81.4 7 9.1 81.2 81.7 81.0 7 8 .2 7 8 .3 7 8 .9 7 7 .9 81.1 80.4 81.6 79.9 7 8 .6 80.3 Interm ediate products Construction products....................... . Misc. intermediate products.............. 5.93 119.7 7.34 121.1 115.9 116.5 118.0 117.8 119.8 118.5 118.0 120.4 120.2 121.1 119.3 120.6 123.1 122.8 122.6 123.6 126.1 124.6 125.9 127.2 127.0 125.6 126.7 127.0 128.2 127.9 1 1 2 .6 1 1 7 .4 11 7 .7 120.1 1 2 3 .9 12 4 .4 1 2 5 .5 M aterials Durable goods m a teria ls. ................... . 20 .9 1 112.1 10 7 .8 1 1 0 .4 Nondurable goods m aterials .............. 1 3 .9 9 1 2 1 .7 1 1 9 .8 1 2 0 .6 Consumer durable p a rts ............... Equipm ent p a rts............................. D urable materials n ec................... Textile, paper, and chem. m a t.. . Nondurable materials n .e.c... . . . Fuel and power, industrial............... 111.1 111.1 1 2 1 .3 122.5 1 1 1.5 4.75 113.1 110.2 113.8 112.0 112.0 111.4 91.0 95 .4 95.3 95.3 98.2 5.41 97.1 10.75 119.3 115.2 116.5 118.6 118.6 118.2 8.58 128.0 125.0 125.9 127.1 5.41 111.6 111.4 112.3 112.3 2.89 121.2 118.9 121.6 120.7 1 2 3 .3 128.5 130.1 113.1 112.3 121.7 123.5 1 1 6 .0 114.0 116.3 116.6 97.8 100.7 102.6 119.5 123.6 125.2 12 3 .7 1 2 2 .7 120.1 12 2 .6 1 2 3 .5 1 2 4.3 126.1 1 2 6 .8 115.8 118.0 120. 122.7 124.9 103.6 105.7 104.3 107.5 109.1 125.7 128.5 127 130.2 130.1 131.1 129.2 130.7 132.7 134.8 133.0 134.8 137.0 111.9 112.4 113.0 111.2 110.9 110.4 112.4 110.6 121.5 125.0 124.3 122.5 118.7 120.7 123.2 124.2 Supplementary groups Home goods and clothing................ C ontainers............................................ 9.34 116.8 112.3 115.3 115.9 117.2 116.3 117.7 118.5 119.4 119.2 119.8 122.2 1.82 126.8 120.3 127.5 127.0 130.2 128.8 125.7 122.6 127.2 134.2 135.1 136.9 125.4 123. 141.0 141.7 Gross value of products in market structure (In billions of 1963 dollars) Products , total ................... Final pro d u cts............. Consumer goods Equipm ent................. Intermediate products. For N ote see p. A-61. 4 3 5 .9 4 3 9 .7 4 4 0 .4 312.3 317.1 318.5 317.5 314.3 319.0 321.7 327.6 332.5 332.6 334.8 223.7 220.4 224.8 225.1 224.6 222.5 225.5 226.9 231.0 233.9 233.8 233.7 94.0 91.9 9 2.4 93.3 93.1 91.8 93.7 94.9 96.8 98.5 98.9 101.2 94.3 95.8 96.0 95.9 97.4 99.2 99.5 100.8 95.5 93.2 92.8 94.5 338.2 235.3 102.8 101.7 339.4 236.5 102.7 101.2 413.1 317.7 4 0 5 .6 4 0 9 .7 4 1 3 .0 4 1 2 .0 4 1 0 .1 4 1 4 .7 4 1 7 .5 4 2 5 .0 431. 431. MAY 1973 □ IND U STRIAL PROD U CTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) Grouping D urable................................................ M ining and utilities................................ U tilities................................................. 1967 p ro p o r tion 1972 aver age* 8 8 .5 5 1 1 3 .1 52.33 36.22 11.45 6.37 5.0 8 1972 M ar. 1973 Apr. M ay June July Aug. Sept. Oct. Nov. Dec. 1 0 9 .7 11 1 .8 1 1 2 .3 105.8 120.3 122.9 109.0 140.2 106.3 120.8 122.6 107.9 141.1 1 1 2 .6 1 1 3 .2 107.4 103.4 121.5 118.8 123.8 122.3 108.3 108.5 143.2 139.7 1 1 4 .1 1 1 0 .4 1 1 2 .7 J a n .r Feb. Mar. 1 2 1 .5 1 1 5 .2 106.8 121.3 122.7 108.2 140.9 1 1 6 .6 1 1 7 .4 1 1 8 .5 107.7 121.0 123.2 107.9 142.5 108.4 122.6 123.8 107.7 144.1 109.7 123.3 125.9 110.2 145.6 112.4 124.7 127.2 110.1 148.7 144.1 125.0 126.2 108.3 148.6 1 1 8 .9 1 2 0 .6 111.4 124.3 126.2 110.0 146.6 114.3 125.4 127.7 108.4 151.9 116.2 126.9 127.4 109.1 150.4 1 1 2 .1 1 1 4 .5 1 1 4 .0 1 1 6 .4 1 2 2 .8 1 2 0 .2 1 2 2 .4 1 2 3 .1 1 0 8 .7 1 0 9 .5 1 1 0 .9 1 1 1 .8 116.9 128.2 126.9 107.8 150.9 Durable manufactures Primary m etals.................................... Iron and steel, subtotal................. Fabricated metal products............... M achinery............................................ N onelectrical machinery............... Electrical m achinery...................... Transportation equipm ent............... M otor vehicles and p a rts ............. Aerospace and misc. trans. e q . .. Instrum ents.......................................... Lumber , clay, and gla ss ......................... Clay, glass, and stone products. . . . Furniture and fixtures....................... Miscellaneous m anufactures............ 12 .5 5 1 1 3 .0 1 0 7 .4 6.61 112.8 105.1 4.23 106.9 98.8 5 .94 113.3 110.1 110.2 113.5 105.5 108.3 110.8 111.9 3 2 .4 4 1 0 2.1 9 8 .4 10 1 .1 17.39 9.17 8.22 9.29 4.56 4.73 2.07 3.69 105.2 100.3 97.6 103.1 107.5 103.3 98.9 95.9 122.8 118.8 75.8 73.9 118.7 114.2 86.6 86.4 102.6 98 .6 107.1 100.4 125.6 76.1 116.1 87.3 103.0 104.8 104.8 107.1 100.4 101.8 102.9 106.1 105.9 108.0 107.1 108.1 97.4 98.2 98.4 98.9 122.6 119.3 121.4 121.6 76.4 75.9 76.0 76.1 117.3 119.3 119.9 120.9 87.6 87.8 88.0 86.2 118.1 1 1 8 .2 4 .4 4 1 0 1 .0 1 1 9 .7 118.1 1.65 122.7 2.79 117.9 119.6 119.9 119.1 117.2 117.1 117.5 2 .9 0 1 2 2 .6 1 1 8 .4 1.38 113.1 1.52 131.2 1 1 9 .9 1 2 0 .6 108.7 111.7 110.7 127.2 127.4 129.6 1 1 8 .4 1 1 9 .6 111.9 114.9 104.9 107.7 112.3 114.1 113.6 117.4 119.3 107.3 113.4 114.1 114.4 115.2 117.5 120.2 126.6 120.6 122.4 12 2 .7 114.3 117.4 114.2 119.3 119.1 118.8 118.6 119.9 122.5 123.6 1 0 1 .6 103.1 1 0 4 .1 1 0 5 .7 1 0 7 .0 108.3 107.0 109.7 99.8 123.0 77.3 122.4 84.8 109.6 108.8 110.4 102.1 127.6 77.5 122.9 86.3 110.4 110.6 110.2 105.0 132.0 7 9.0 123.3 86.9 1 2 0 .5 1 2 3 .0 1 2 2 .8 1 2 6 .6 1 2 6 .2 1 2 6 .2 1 1 9 .0 1 0 2 .0 1 1 9 .1 121.8 121.5 117.4 117.7 1 2 2 .1 1 2 3 .7 1 1 9 .6 121.1 122.8 118.7 119.1 1 2 6 .7 112.8 115.5 117.6 116.7 130.6 131.0 135.1 135.6 113.1 110.5 116.0 105.9 135.3 77.6 122.6 87.3 113.7 112.3 115.2 106.7 137.4 77.1 127.2 86.6 1 2 0 .9 1 2 2 .2 1 2 7 .2 1 2 6 .4 1 2 7 .0 1 3 0 .3 1 3 2 .5 119.1 140.5 122.3 142.1 1 3 3 .1 114.3 112.9 116.0 110.0 141.5 79.7 129.2 87.1 115.9 114.0 118.2 110.3 141.0 80.8 130.8 86.4 128.1 128.2 124.3 126.8 128.5 128.7 120.0 119.7 118.9 119.5 126.4 125.0 116.1 117.4 118.5 135.4 134.0 134.5 123.0 142.6 Nondurable manufactures Textile mill p ro d u cts......................... Apparel p ro d u cts................................ Leather and p ro d u cts........................ P aper an d prin tin g .................................. Paper and p ro d u c ts............................ Printing and publishing..................... Chemicals, petroleum , and rubber . . . . Chemicals and p ro d u cts................... Petroleum p ro d u cts............................ R ubber and plastics products.......... Foods and tobacco ................................... F o o d s.................................................... Tobacco products............................... 6 .9 0 2 .6 9 3 .3 3 .88 1 0 6 .2 7 .9 2 1 1 5 .4 114.5 104.2 88.1 1 0 3 .7 106.1 1 0 4 .9 1 1 2 .6 1 1 2 .3 114.1 1 3 3 .4 1 3 6.1 1 3 7 .5 1 1 6 .3 1 1 7 .6 1 1 7.1 1 0 8 .3 1 0 4 .6 9 9 .4 110.9 113.5 112.8 102.7 103.3 102.8 85.4 9 4 .4 89.2 3.18 126.7 122.5 124.4 127.2 4.7 4 108.0 105.9 104.2 105.3 1 1 .9 2 1 3 7 .5 7.86 139.3 135.7 137.9 138.9 1.80 120.1 117.9 117.0 119.5 2.26 145.0 138.1 144.7 146.5 9 .4 8 1 1 7 .4 8.81 118.4 117.5 118.6 118.5 .67 104.4 101.9 103.9 99.1 1 0 5 .9 1 15 .1 1 0 6 .8 1 1 5 .2 1 1 6 .4 1 3 7 .4 1 3 9 .9 14 1 .1 141.3 143.4 143.8 120.4 120.7 124.1 150.4 149.6 148.2 141.5 141.5 145.4 146.2 150.1 123.4 124.8 129.0 125.0 124.4 151.3 154.4 156.7 160.1 162.6 1 1 6 .8 1 1 7 .6 9 5 .8 1 1 1 .0 126.7 126.9 107.3 107.2 137.1 139.5 139.5 117.3 119.5 145.0 144.1 1 1 7 .6 1 0 8 .0 1 0 9 .1 1 0 9 .1 1 1 0 .7 107.7 109.7 111.5 116.5 116.6 118.5 118.4 119.9 118.4 119.9 121.1 104.3 105.5 106.8 109.3 109.5 106.0 108.0 80.1 87.4 81.3 86.5 91.6 85.1 **84.'7 88.6 1 0 4 .8 113.9 112.7 103.0 102.2 92.2 90.2 119.3 118.3 96.4 96.7 1 1 8 .6 1 2 0 .9 1 4 1 .6 1 4 0 .6 1 1 8 .8 1 1 7 .8 1 1 8 .9 1 0 1 .0 1 0 6 .5 1 0 6 .2 1 1 3 .0 1 0 9 .3 1 1 1 .1 1 1 5 .3 127.8 124.1 127.9 108.7 109.4 112.4 1 2 0 .6 1 1 9 .9 1 2 1 .9 1 2 1 .8 1 4 5 .6 1 4 8 .6 1 2 0 .3 1 1 9 .7 1 1 6 .0 1 1 3 .6 133.3 134.4 132.4 135.0 136.4 112.6 111.3 111.5 113.0 112.2 1 4 1 .5 1 4 5 .2 1 1 8 .3 1 1 8 .2 118.3 120.0 118.2 119.4 119.5 108.5 103.0 111.8 112.5 102.5 119.0 121.0 120.5 107.9 110.3 Mining M e ta l , stone, and earth minerals .......... 1 .2 6 M etal m ining....................................... Stone and earth m inerals.................. .51 .75 C oal, oil, and g a s .................................... 5 .1 1 C o a l....................................................... Oil and gas extraction....................... 1 0 4 .8 9 9 .6 120.8 131.0 122.2 110.7 93.9 92.7 92.6 91.7 102.9 102.2 115.2 123.4 122.3 97.4 91.6 91.4 94.9 9 5.2 1 0 9 .2 1 1 0 .5 1 0 8 .6 1 1 0 .0 1 0 9 .9 .69 103.2 104.1 112.9 105.0 109.1 114.4 97.2 104.2 4.42 110.2 109.3 109.6 110.7 110.7 110.5 111.2 112.1 1 1 0 .9 9 9 .3 112.7 1 1 4 .6 1 1 4 .8 136.7 141.8 138.6 140.8 136.9 97.7 97.0 96.0 98.4 99.1 1 0 9 .2 1 0 6 .8 101.0 97.1 110.5 108.2 1 0 6 .9 1 0 7 .3 1 0 6 .4 156.9 157.6 95.8 101.9 108.6 108.2 106.0 106.5 Utilities (3<is For N ote see p. A-61. 3.91 149.1 1.17 144.8 145.6 147.1 146.8 148.6 150.2 152.0 152.8 155.2 155.2 159.1 A 60 IND U STRIAL PROD U CTION: N.S.A. □ MAY 1973 MARKET GROUPINGS (1967 = 100) Grouping T otal index. Products, to ta l.................. Final pro d u cts ........... Consumer g o o d s.. . . Equipm ent................. Interm ediate products. M aterials............................ 1967 p ro p o r tion 1972 aver age* 1972 M ar. Apr. 100.00 114.4 111.6 113.6 M ay June July Aug. Sept. 113.4 116.5 109.2 115.4 120.3 62.21 113.1 110.0 111.7 110.8 115.2 109.1 4 8 .9 5 1 1 1 .2 1 0 8 .3 1 1 0 .2 1973 1 0 8 .5 1 1 3 .3 1 0 6 .3 Oct. Nov. Dec, 121.3 118.7 116.0 117.2 J a n .r Feb. Mar, 121.7 122.6 115.2 120.7 120.8 117.1 113.0 115.2 119.2 120.2 1 1 2 .7 1 1 8 .7 1 1 8 .6 1 1 4 .8 1 1 1 .0 114 .1 28.53 123.1 119.2 122.4 119.6 126.0 117.0 126.5 133.5 132.7 126.0 119.7 124.3 95.6 91.4 93.4 98.0 99.0 99.2 98.8 99.9 93.2 93.1 20.42 94.5 93.1 119.5 122.2 119.2 124.4 128.0 128.7 125.6 120.3 119.4 13.26 120.5 116.5 117 37.79 116.4 114.5 116.6 117.7 118.7 109.4 115.8 119.6 122.1 121.4 120.9 120.6 1 1 7 .8 1 1 8 .5 128.4 103.0 124.3 125.9 129.6 103.0 126.5 126.6 1 4 0 .6 1 4 3 .9 Consumer goods Durable consumer goods ................. 7 .8 6 12 5 .4 121. 128. 1 2 6 .0 Automotive products................. A utos........................................ Auto parts and allied goods. 2.84 127.1 1.87 112.7 .97 154.7 126.3 138. 132.6 115.1 128.0 121.3 147.8 157.8 154.3 Home goods........................................ Appliances, TV, and home audio. Appliances and A /C ................. TV and home audio................ . Carpeting and fu rn itu re............... Misc. hom e goods......................... 5 .0 2 1.41 .92 .49 1.08 2.53 N ondurable consumer g o o d s ................. C lothing.............................................. . Consumer staples................................ Consumer foods and to b a c co ..., N onfood staples............................. Consumer chemical p ro d u c ts.. Consumer paper products........ Consum er fuel and lighting. . , Residential utilities................ 1 2 9 .3 1 1 9 .3 1 2 3 .5 1 2 2 .3 120.1 139.3 84.1 130.8 113.9 1 2 6 .9 124.7 144.5 87.5 132.6 121.0 131.9 124.9 156.6 146.9 85 83.7 131.8 128.3 115.3 118.2 125.6 147.4 84. 132.8 125.2 2 0 .6 7 1 2 2 .2 11 8 .2 1 1 9 .9 7.98 2.64 1.91 3.43 2.25 135.0 144.3 114.7 139.2 147.5 129.2 135.0 110.8 135.0 144.2 128.9 142.3 110.3 129.0 136.3 1 2 .7 4 1 0 4 .3 10 2 .2 1 0 2 .3 1 2 4 .5 1 0 7 .4 133.5 92.8 120.1 61.0 159.3 153.9 1 1 9 .3 1 3 3 .6 1 3 0 .0 1 2 2 .7 143.4 148.4 120.4 152.4 165.3 147.3 143.0 159.3 158.3 122.8 124 151.6 141.3 163.8 148.1 1 0 3 .2 1 1 0 .2 1 1 1 .2 112.2 128.9 80.9 138.7 128.3 127.7 143.5 98.2 139.6 130.9 1 2 4 .7 1 2 0 .6 1 2 9 .2 1 3 3 .4 127.4 143.9 107.9 125.5 128.7 135.1 152.3 116.2 132.4 137.5 138.3 146.9 114.2 145.1 154.6 1 0 2 .2 1 0 5 .6 9 9 .5 113.2 97.2 127.8 126. 120.8 115.8 1 2 4 .9 1 3 3 .3 141.2 123.2 138.5 132.9 109.8 134 157.0 149.0 145.7 1 3 0 .8 1 2 6 .0 109.6 134.9 62.2 114.4 119.5 1 17.1 1 3 4 .5 1 3 6 .2 1 3 1 .9 1 1 5 .6 4.32 107.8 108.1 113.2 102.7 16.34 126.0 120.9 121.7 120.9 8.37 117.4 113.0 114.8 114.7 139 107.5 136.5 146.3 78.4 120.6 135.6 163.3 167.1 166.9 149.1 151.6 144.6 143.9 157.7 166.5 1 2 5 .8 1 3 0 .3 1 3 5 .8 1 3 9 .5 1 1 7 .7 1 2 0 .9 123. 1 2 4 .2 134.6 143.8 118.5 136.4 141.4 134.2 132.5 113 147.2 156.6 140.0 138.6 112.3 156.6 170.5 138.1 138.9 116.2 149.7 162.4 136.8 141.8 114.9 145.2 156.6 1 1 0 .7 1 0 9 .3 112.1 1 1 6 .7 1 1 6 .8 142.8 129.1 122.0 139.7 143.4 152.3 165.0 143.5 134.6 153.7 158.1 171.1 101.2 102.2 98.4 139.7 140.8 140.0 141.0 149.7 148.9 131.1 127.6 121.9 120.4 125.7 128.3 113.5 116.9 114.7 108.2 100.1 102.9 114.1 133.4 137.8 134.0 126 122.3 125.6 126.3 126.'3 123.9 128.7 125.4 118.7 111.0 111.9 115.0 116.2 Equipment Business equipm ent ........................ Industrial equipm ent............... Building and mining eq u ip .. M anufacturing equipm ent.. Power equipm ent................. 6.77 99.3 96 .4 95.7 95.7 1.45 101.9 97.9 99 .0 96.3 86.2 84.8 85.5 3.85 88.6 1.47 124.6 121.4 121.2 121.8 Commercial, transit, farm e q .. Commercial equipm ent. Transit equipm ent............... . Farm equipm ent.................... 117.7 115.6 112.5 117.0 5.97 110.0 108.7 109.8 109.6 113.0 103.4 107.4 115 3.30 117.8 112.6 112.2 114.7 121.9 120.2 122.0 127.2 124.8 123.6 120.4 121.9 2.00 96.7 99.5 104.8 100.9 97.9 78.2 85.2 95.2 104.0 104.6 99.2 108.1 .67 110.6 117.2 113.2 110.0 114.4 95 .2 101.0 120.8 123.2 109.0 113.2 118.9 Defense and space equipm ent . M ilitary p roducts................. 7 .6 8 5.15 7 8 .2 80.6 99.0 96.0 101.4 98.0 88.2 85.2 124.9 122.3 99.5 105.2 105.5 102.3 107.5 107.1 89.2 93.6 94.9 123.7 133.2 131. 106.3 106.4 107.7 111.3 110.9 108.4 109.9 107.6 110.3 106.1 96.6 97.7 99.7 104.5 105.1 129.4 125.8 128.8 129.9 130.6 122.8 123.6 126.9 127.6 114.8 115.0 126.2 129.4 8 0 .0 8 1 .3 80.0 81.4 82.0 120.6 121.9 117.9 118.7 122.4 120.3 120.5 125.5 128.4 127.5 130.0 129.0 124.5 126.5 118.0 117.1 122.1 121.3 124.9 128.1 123.8 125.2 113 1 0 3 .8 1 0 9 .9 116. 1 1 8 .7 118 .1 1 1 9 .5 1 1 8 .5 1 2 4 .9 1 2 6 .5 1 1 6 .6 1 2 3 .3 1 2 2 .8 1 2 6 .7 1 2 6 .0 1 2 3 .0 1 2 3 .4 1 2 7 .6 1 2 6 .9 7 7 .9 7 8 .0 7 8 .1 7 8 .9 81.0 81.1 81.3 81.7 7 7 .9 77.1 81.0 79.3 77.7 79.2 7 8 .7 7 9 .6 81.0 8 0 .3 81.6 8 0 .0 81.3 Intermediate products C onstruction products.......... Misc. intermediate products. 5.93 7.34 119.7 116.9 118.9 121.1 116.1 116.2 M aterials 112.1 1 1 0 .2 1 1 2 .4 D urable goods m aterials . . . . 20 .9 1 4.75 113.1 5.41 97.1 10.75 119.3 111.6 112.9 113.3 93.7 96.5 95.9 117.8 120.1 123.1 Nondurable goods m aterials .......... 1 3 .9 9 119. Consumer durable p a rts . Equipment p arts............... D urable materials n .e.c.. Textile, paper, and chem. m a t.. N ondurable materials n .e.c.... Fuel and power, industrial........... 8.58 5.41 2.89 1 2 1 .7 1 2 1 .8 128.0 126.0 128.5 111.6 110.0 111.2 121.2 119.6 121.8 114. 112.5 98.5 98.9 92.2 123.9 111.9 1 2 3 .0 1 2 4 .2 129.6 112.6 120.7 130.9 120.9 113.6 109.9 120.8 115.2 113.2 128.9 120.6 107.1 134.2 123.1 107.8 117.2 119.4 120.9 125.5 125.0 127.9 127.7 95.5 101.7 102.3 102.7 104.7 104.6 109.1 112.4 118.1 124.3 126.6 124.7 124.4 122.6 131.6 133.1 130.1 129.1 133.4 134.2 130.6 132.1 137.9 138.1 112.6 112.8 116.0 113.1 110.9 109.5 111.3 109.2 121.7 124.0 124.4 123.5 120.4 122.8 125.0 125.1 Supplementary groups Home goods and clothing., C ontainers............................. For N ote see p. A-61. 9.34 116.8 114.1 1.82 126.8 120.3 118.7 127.9 120.2 125.0 126.3 120.3 113.9 117.6 125.8 128.9 130.0 128.0 134.4 133.0 125.0 129.4 140.6 141.7 MAY 1973 □ INDUSTRIAL P ROD U C TION: N.S.A. A 61 INDUSTRY GROUPINGS (1967= 100) 1967 proG rouping M anufacturing , to ta l ............................... D urab le................................................. N ondurable.......................................... U tilities................................................. tion 8 8 .5 5 1972 aver age* 1 13.1 52.33 107.4 36.22 121.5 1972 1973 M ar. Apr. May 1 1 0.5 772.7 107.5 120.2 112.1 r 115.7 r 107. C) 113.5 ’ 118 .9 > 120.6 > 118 .1 107.6i 109.4 100.2 \ 105.1 111.9 114.4L 113.1 105.5 117.8 June 120.0I 1 1 .4 5 1 2 3 .8 12 0 .7 120.4 120.0 » 6.37 108.3 106.4 108.8 109.9 5.08 143.2 138.7 134.9 132.6 July Aug. Sept. 124.9' 122.9 ' 109.7 139.4 116.9> 124.6 ; 105.5 148.6 125.7r 130.0 > 109.2: 156.2 1 1 5 .7 1 1 5 .0 1 0 5 .1 1 09.1 9 4 .4 9 8 .7 Oct. 128.9 129.6i 13 0 .8 1 126.3 f 110.8 110.7 155.9 146.0i Nov. Dec. J a n .r Feb. M ar. 1 1 4 .8 ' 115 .9 1 1 2 1 .0 1 111.4 112.8: 118.3 125.4 119.7 120.3 ’ 125.0 1 12 3 .5 12 4 .8 128.3' 126.9 ' 109.5 108.0 105.8 107.2 141.1 146.0 156.6 151.6 1 2 2 .7 119.7 1 2 7 .0 12 5 .1 105.6 149.7 Durable manufactures Prim ary and fa b rica ted m e ta ls ............. 1 1 3 .0 1 1 2 .6 11 4 .3 3 2 .4 4 1 0 2 .1 1 0 0 .2 1 0 2 .3 1 0 4 .0 105.2 103.1 107.5 98.9 122.8 75.8 118.7 86.6 102.2 100.2 104.5 9 9 .0 123.8 75.0 112.3 87.1 103.4 99.8 107.4 103.8 131.8 76.8 112.5 87.3 1 0 1 .7 102.9 100.9 105.1 101.7 128.1 76.3 116.1 87.8 107.0 100.0 104.1 111.4 112.7 110.5 104.7 100.5 103.3 109.4 109.6 109.1 109.5 99.5 105.0 113.6 116.1 112.1 100.8 81.0 88.3 102.0 107.0 107.9 126.0 87.8 102.3 127.1 137.2 137.9 76.6 74.5 74.9 77.8 77.9 78.9 121.8 119.9 123.4 127.3 126.5 123.9 88.2 87.3 85.2 84.5 87.0 85.7 110.3 109.2 111.6 103.0 128.9 78.1 122.5 87.7 1 0 9 .4 17.39 9.17 8.22 9.29 4.56 4.73 2.07 3.69 1 1 3 .2 112.8 110.8 115.0 108.7 142.6 76.0 123.5 87.1 117.0 116.6 117.5 113.5 148.6 79.6 125.5 87.4 118.6 117.1 120.2 114.0 147.3 82.0 128.6 87.1 4 .4 4 1 1 9 .7 1 1 5 .9 1 1 8 .5 121.5 112.5 122.1 116.3 1 2 0 .4 124 .1 1 1 2 .9 1 1 2 .1 1 2 1 .0 1 2 4 .0 1 1 8 .8 119.1 12 .5 5 Primary m etals.................................... Iron and steel, subtotal................. 6.61 4.23 5.9 4 M achinery and allied goods ................... M achinery............................................ Nonelectrical m achinery............... Electrical machinery...................... Transportation equipm ent............... M otor vehicles and p a rts ............. Aerospace and misc. trans. eq. .. Instrum ents.......................................... Ordnance, private and G ovt............ Lum ber, clay, and g lass .......................... Lum ber and p ro d u cts........................ Clay, glass, and stone p ro d u cts. . . . Furniture and miscellaneous ................... Furniture and fixtures....................... Miscellaneous m anufactures............ 112.8 113.5 117.2 118.9 116.5 101.6 106.9 107.4 113.2 114.3 108.6 98.3 113.3 111.5 111.1 112.2 113.3 109.0 1.65 122.7 2.79 117.9 2 .9 0 1 2 2 .6 1.38 113.1 1.52 131.2 1 1 9 .2 1 1 6 .0 1 1 9 .7 1 1 9 .0 1 2 0 .2 1 1 8 .8 1 2 7 .0 1 1 2 9 .0 106.9 114.8 119.4 117.6 121.7 118.9 129.5 132.5 101.2 108.1 113.4 110.9 114.2 112.4 126.0 129.5 111.5 117.4 120.1 120.5 118.6 118.6 124.3 125.2 1 2 5 .7 1 0 6 .7 1 0 8 .9 1 0 7 .9 1 2 6 .3 1 2 9 .0 1 2 2 .6 1 3 1 .0 1 1 2 .8 1 0 6 .4 121.8 126.5 120.5 125.9 128.8 132.8 119.6 122.7 118.4 125.6 124.8 126.7 124.7 111.6 115.5 121.4 113.7 110.1 118.1 112.7 111.6 108.7 124.4 125.9 126.6 1 2 3 .7 112.1 134.3 1 1 4 .5 100.4 127.3 13 1 .1 1 3 0 .7 115.7 117.9 118.8 138.2 142.9 142.2 120.9 119.7 139.6 133.2 1 1 2 .2 1 0 7 .5 1 2 7 .5 1 2 6 .7 1 2 6 .1 1 1 4 .3 128.2 130.8 116.8 120.0 1 3 4 .0 1 3 3 .8 1 1 2 .0 1 1 3 .8 121.6 128.3 127.5 130.2 139.1 139.5 Nondurable manufactures 1 0 6 .2 Textiles, apparel, and le a th er ............... 6 .9 0 Textile mill p ro d u cts.......................... Apparel pro d u cts................................ Leather and products......................... 2.69 3.33 .88 114.5 114.0 115.9 104.2 105.0 109.5 88.1 9 0.4 93.3 7 .9 2 1 1 5 .4 Printing and publishing..................... 3.18 126.7 125.3 128.1 128.5 130.2 116.1 4.74 108.0 101.7 102.7 104.4 109.6 108.4 Chemicals, petroleum, and rubber ........ Chemicals and p ro d u cts................... Petroleum p ro d u cts............................ R ubber and plastics products.......... Foods and tobacco ................................... F oods.................................................... Tobacco products............................... 1 1 .9 2 1 3 7 .5 1 0 6 .7 1 1 1 .2 1 3 2 .5 1 0 9 .9 1 1 0 .9 1 1 7 .4 1 1 2 .9 1 0 2 .6 114 .1 1 1 3 .4 1 3 9 .2 1 4 0 .8 1 1 3 .3 1 1 3 .2 9 8 .8 119.0 102.0 109.1 92.5 92.8 78.2 120.7 120.4 120.9 109.2 112.1 110.2 91.3 92.0 92.8 118.4 112.4 111.3 119.9 122.3 105.8 96.4 101.3 111.8 80.7 83.3 80.6 88.7 * 89.6 1 1 2 .9 1 1 4.1 1 1 7 .9 1 1 1 .5 1 2 0 .0 127.5 123.7 134.5 114.9 118.6 118.5 134.4 124.3 130.8 138.4 139.5 114.7 107.3 101.7 106.0 107.7 1 3 5 .8 1 3 8 .0 1 4 1 .4 1 3 4 .7 1 2 0 .7 1 2 4 .9 1 2 2 .6 1 4 0 .3 1 4 4 .9 1 4 5 .6 1 4 1 .9 1 1 5 .2 1 2 2 .7 1 2 7 .5 1 2 6 .0 1 2 0 .0 7.86 139.3 134.1 138.9 140.7 144.2 138.7 1.80 120.1 113.5 112.1 118.4 121.5 123.8 2.26 145.0 142.2 144.1 144.0 147.6 129.3 9 .4 8 1 0 1 .0 9 4 .4 1 1 1 .4 115.8 98.7 87.3 10 3 .9 1 20.1 142.4 147.1 14 6 .1 125.7 126.3 126.3 144.4 152.3 156.9 1 1 9 .0 1 2 0 .5 1 4 4 .1 1 4 7 .6 1 1 5 .5 1 1 6 .1 142.1 138.5 140.3 142.8 148.3 122.5 122.9 123.7 121.1 119.8 156.7 154.7 156.4 167.0 167.5 1 1 4 .2 114.1 8.81 118.4 113.7 115.3 .67 104.4 102.1 99.4 115.3 98.1 121.4 117.4 123.2 128.9 126.4 120.5 115.4 113.6 115.7 103.0 86.3 116.7 109.4 120.4 113.4 86.0 107.7 113.5 1 1 0 .8 11 1 .6 1 0 2 .2 1 0 8 .7 1 1 3 .1 131.5 96.7 129.6 116.7 99.3 92.3 128.4 133.5 95.4 99.2 1 0 9 .2 1 0 6 .3 1 0 9 .3 1 1 0 .3 116.6 Mining M eta l , stone , and earth minerals .......... 1 .2 6 M etal m ining....................................... Stone and earth m inerals................. .51 .75 Coal, oil, and g a s .................................... 5 .1 1 1 0 4 .8 9 8 .0 1 0 5 .3 120.8 114.4 123.5 93.9 86.8 92.8 1 0 9 .2 1 0 8 .5 1 0 9 .7 1 0 9 .7 143.5 138.5 136.4 144.9 156.5 .69 103.2 102.7 114.9 107.1 4.42 110.2 109.4 108.9 110.1 104.8 87.6 109.9 109.2 1 1 0 .2 1 0 6 .1 1 0 3 .8 1 1 0 .8 1 1 0 .3 1 0 9 .1 1 0 0 .8 1 0 2 .8 123.2 114.8 114.6 113.8 119.8 119.5 87.8 91.4 101.3 100.3 96.4 88.6 103.5 106.9 106.1 110.2 110.8 111.6 103.2 96.5 111.4 111.1 1 0 7 .5 1 0 8 .8 94.7 109.5 102.2 104.6 109.8 106.6 1 0 6 .3 U tilities G as . . . .. .. . . . . . . . . . . . 3.91 1.17 149.1 N ote .—Published groupings include series and subtotals not shown separately. A description and historical data will be available at a later 166.0 165.4 152.0 145.3 151.6 165.1 158.5 156.0 ........... date. Figures for individual series and subtotals are published in the monthly Business Indexes release. A 62 BUSINESS A C TIV ITY ; C O N STR U C TION □ MAY 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production M anu facturing 2 In dustry M arket Period Products Total Final products Total T otal Inter M ate mediate rials C on sumer Equip prod ucts goods ment M anu factur ing Ca N o n ag pacity C on ricul utiliza stru c tural tion tion em in mfg. con ploy Em (1967 tracts m ent— ploy output Total i m ent = 100) Prices 4 Pay rolls T otal retail sales 3 C on sumer W hole sale com m odity 1953....................... 1954....................... 51.9 51.8 50.8 53.3 47.9 55. i 52.0 51.5 95.5 84.1 76.3 74.4 98.2 89.6 60.3 55.1 54 54 80.1 80.5 8 7.4 87.6 1955....................... 1956....................... 1957....................... 1958....................... 1959....................... 58.5 61.1 61.9 57.9 64.8 56.6 59.7 61.1 58.6 64.4 54.9 58.2 59.9 57.1 62.7 59.5 61.7 63.2 62.6 68.7 48.9 53.7 55.9 50.0 54.9 62.6 65.3 65.3 63.9 70.5 61.5 63.1 63.1 56.8 65.5 58.2 60.5 61.2 56.9 64.1 90.0 88.2 84.5 75.1 81.4 76.9 79.6 80.3 78.0 81.0 92.9 93.9 92.2 83.9 88.1 61.1 64.6 65.4 60.3 67.8 59 61 64 64 69 80.2 81 .4 84.3 86.6 87.3 87.8 90.7 93 .3 9 4 .6 94 .8 1960....................... 1961....................... 1962....................... 1963....................... 1964....................... 66.2 66.7 72.2 76.5 81.7 66.2 66.9 72.1 76.2 81.2 64.8 65.3 70.8 74.9 79.6 71.3 72.8 77.7 82.0 86.8 56.4 55.6 61.9 65.6 70.1 71.0 72.4 76.9 81.1 87.3 66.4 66.4 72.4 77.0 82.6 65.4 65.6 71.4 75.8 81.2 80.1 77.6 81.4 83.0 , 86.1 85.5 89.4 82.4 82.1 84.4 86.1 88.6 88.0 84.5 87.3 87.8 89.3 68.8 68.0 73.3 76.0 80.1 70 70 75 79 83 88.7 89.6 90.6 91.7 9 2.9 94.9 94.5 9 4.8 94.5 94.7 1965....................... 1966....................... 1967....................... 1968....................... 1969....................... 1970....................... 1971....................... 1Q12p .................... 89.2 97.9 100.0 105.7 110.7 106.7 106.8 114.4 88.1 96.8 100.0 105.8 109.7 106.0 106.4 113.2 86.8 96.1 100.0 105.8 109.0 104.5 104.7 111.2 93.0 78.7 93.0 98.6 93.0 99.2 100.0 100.0 100.0 106.6 104.7 105.7 111.1 106.1 112.0 110.3 96.3 111.7 115.7 89.4 112.6 9 4.6 120.4 123.1 91.0 99.8 100.0 105.7 112.4 107.7 107.4 116.5 89.1 98.3 100.0 105.7 110.5 105.2 105.2 113.2 92.3 97.1 100.0 103.1 106.7 107.2 107.3 110.5 93.9 99.9 100.0 101.4 103.2 98.0 93.9 96.7 88.1 97.8 100.0 108.3 116.6 114.1 116.3 130.2 91 97 100 109 114 120 122 142 94.5 97.2 100.0 104.2 109.8 116.3 121.2 125.3 96 .6 99.8 100.0 102.5 106.5 110.4 113.9 119.8 1972-—M ar........... A pr............ M ay.......... June.......... Ju ly ........... Aug............ Sept........... O ct............ N ov........... D ec............ 111.2 112.8 113.2 113.4 113.9 115.0 116.1 117.5 118.5 119.2 110.1 111.4 112.1 112.0 112.2 113.3 114.4 115.9 117.3 117.5 108.2 109.8 110.2 110.1 110.1 111.3 112.4 113.9 115.0 115.3 119.6 122.0 122.2 122.1 122.0 123.1 124.4 125.6 126.8 126.7 117.3 117.3 119.3 119.1 120.5 121.2 121.7 123.4 125.9 125.7 113.1 115.0 115.6 116.1 116.8 117.4 119.1 120.3 120.6 122.0 109.7 111.8 112.3 112.6 113.2 114.1 115.2 116.6 117.4 118.5 5 '7 5 .4 159.0 167.0 '7 7 .6 165.0 154.0 155.0 78.4 180.0 187.0 171.0 177.0 80.2 163.0 '109.3 109.7 110.2 '1 1 0 .4 110.3 110.8 111.1 111.7 112.2 112.4 '9 5 .2 '9 5 .8 '9 6 .4 '9 6 .8 96.3 96.8 97.3 98.4 99.2 99.8 '124.9 '12 7 .4 '1 2 8 .0 '1 28.9 '1 2 7 .7 '1 3 1 .2 '133.8 '136.1 '1 3 9 .0 '139.3 139 139 142 141 143 145 144 149 148 151 124.0 124.3 124.7 125.0 125.5 125.7 126.2 126.6 126.9 127.3 117.4 117.5 118.2 118.8 119.7 119.9 120.2 120.0 120.7 122.9 '1 0 1 .0 '126.5 '1 0 2 .2 '127.7 102.3 '127.5 103.5 128.3 '121.7 123.9 '124.7 126.3 '118.9 '120.6 '121.5 122.8 181.0 191.0 193.0 112.7 '113.5 '1 13.8 113.9 99.9 100.6 100.9 101.7 '139.8 142.9 '14 2 .6 145.0 156 158 160 127.7 128.6 129.8 124.5 126.9 129.7 130.7 1973-—Jan ............ 119.9 '118.6 116.4 '127.5 Feb............ '121.1 '119.5 '117.3 '1 2 8 .2 M ar........... '121.8 '1 2 0 .0 '117.9 '129.1 A pr.*........ 123.0 121.1 119.2 130.4 92.4 92.7 9 3 .4 93.3 93.4 94.8 95.8 97.3 98.5 99.4 1 Employees only: excludes personnel in the Armed Forces. 2 Production workers only. 3 F.R. index based on Census Bureau figures. 4 Prices are not seasonally adjusted. Latest figure is final. 5 Figure is for first quarter 1972. N o te.— A ll series: D ata are seasonally adjusted unless otherwise noted. 89.0 91.9 87.9 87.7 86.5 '7 8 .3 '7 5 .0 77.9 81.3 93.2 94.8 100.0 113.2 123.7 i3 2 ‘6* C a p a city u tilization : Based on data from Federal Reserve, M cG raw Hill Economics D epartm ent, and D ept, o f Commerce. Construction contracts: F. W. D odge Co. m onthly index o f dollar value o f total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Em ploym ent and p a yro lls: Based on Bureau o f Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of L abor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions o f dollars, except as noted) 1972 Type o f ownership and type o f construction 1971 M a r.' Total construction 1............................ 1973 1972 Apr. May June July Aug. Sept. Oct. N ov. Dec. Jan. Feb. M ar. 80,188 91,877 7,238 8,100 9,098 8,478 8,067 8,875 8,197 8,225 7,248 6,464 6,795 6,839 8,644 By type o f ow nership: Public............................................ Private 1....................................... 23,927 24,404 1,676 1,741 2,574 2,517 2,528 2,466 2,017 1,668 1,785 1,650 1,918 1,717 56,261 67,473 5,562 6,359 6,524 5,960 5,538 6,409 6,181 6,557 5,462 4,814 4,877 5,122 By type o f construction: Residential building 1............... Nonresidential building............ N onbuilding................................ 34,754 45,473 3,607 3,971 4,428 4,375 3,864 4,671 4,135 4,298 3,663 3,120 3,195 3,277 4,643 25,574 27,327 2,165 2,182 2,908 2,447 2,461 2,458 2,378 3,549 2,184 2,215 2,420 2,229 2,707 19,282 19,077 1,466 1,947 1,762 1,655 1,741 1,746 1,684 1,544 1,402 1,132 1,180 1,333 1,294 Private housing units au th o rized ... (In thousands, S.A., A.R.) 1,925 2,130 2,007 1,991 1,955 2,121 2,108 2,237 2,265 2,216 2,139 2,377 2,218 '2,191 2,093 i Because o f improved collection procedures, data for 1-family homes N ote.—D ollar value o f construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for A laska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated m onthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building perm it systems. MAY 1973 □ C ON STR U CTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Resi dential Total 1962 3 ......... 1963 4 ......... 1964 1965 . 1966 Buildings Total Com mercial Other build ings 1 O ther Indus trial Total Mili tary High way Conser vation & Other 2 develop ment 59,965 64,563 67,413 73,412 76,002 42,096 45,206 47,030 51,350 51,995 25,150 27,874 28,010 27,934 25,715 16.946 17,332 19,020 23,416 26,280 2,842 2,906 3,565 5,118 6,679 5,144 4,995 5,396 6,739 6,879 3,631 3,745 3,994 4,735 5,037 5,329 5,686 6,065 6,824 7,685 17,869 19,357 20.383 22,062 24,007 1,266 1,179 910 830 727 6,365 7,084 7,133 7,550 8,405 1,523 1,694 1,750 2.019 2,194 8,715 9,400 10,590 11,663 12,681 . 77,503 86,626 93,368 94,030 109,399 51,967 59,021 65,404 65,932 79,535 25,568 30,565 33,200 31,864 43,062 26,399 28,456 32,204 34,068 36,473 6,131 6,021 6,783 6,538 5,423 6,982 7,761 9,401 9,754 11,619 4.993 4,382 4,971 5,125 5,428 8,293 10,292 11,049 12,651 14,003 25,536 27.605 27,964 28,098 29,864 695 808 879 718 894 8,591 9,321 9,250 9,981 10,658 2,124 1,973 1,783 1,908 2,095 14,126 15,503 16,052 15,491 16,217 1972—M ar., A pr.. M ay. June. July.. Aug.. Sept.. O c t... N ov.. D ec.. 122,912 120,417 122,121 121,035 119,847 122,857 124,816 128,850 126,327 131,962 92,529 91,469 92,299 92,426 91,564 93,654 94,205 96,024 97,052 97,886 53,089 52,668 52,330 52,923 53,509 54,325 55,465 56,340 57,105 57,373 39,440 38,801 39,969 39.503 38,055 39,329 38,740 40,559 39.947 40,513 4,796 4,649 4,723 4,944 4,592 4,814 4,432 4,301 4,556 4,788 13,244 13,411 14,132 13,477 12,979 13,406 13,490 13,770 13,377 13,711 5.993 5.765 5.766 5,908 5,670 5,942 5,723 6,256 6,230 6,185 15,407 14,976 15,348 15,174 14,814 15,167 15,095 15,357 15,784 15,829 30.383 28,948 29,822 28,609 28,283 29,203 30,611 32,826 29,275 34,076 1,186 965 980 1,099 1,360 867 978 1,045 1,205 1,125 1,918 1,644 1,971 2,256 1,417 1,676 1,666 1,767 1,719 1,667 1973—J a n .r . Feb. *■. M a r.. 135,737 135,548 138,236 101,131 102,663 103,588 58,048 59,731 60,085 43,083 42,932 43.503 5,328 5,137 5,430 15,106 14,908 15,148 5,996 6,046 6,249 16,653 16,841 16,676 34.606 32,885 34,648 1,246 1,443 1,337 2.020 1,721 2,556 1967 1968 1969 1970 197 1 1 Includes religious, educational, hospital, institutional, and other build ings. 2 Sewer and water, formerly shown separately, now included in “ O ther.” 3 Beginning July 1962, reflects inclusion o f new series affecting most private nonresidential groups. 4 Beginning 1963, reflects inclusion o f new series under “ Public” (for State and local govt, activity only). N ote.—Census Bureau data, monthly series at seasonally adjusted annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A .R .) Period Region Type o f structure M obile home ship ments. (N.S.A) G overnm ent underwritten (N .S.A .) Private and public (N.S.A.) Total N orth N orth South east Central West 1family 5- or 2- to 4- morefamily family Total Private Public Total FH A VA 1963............................ 1964............................ 1,603 1,529 261 254 328 340 591 578 430 357 1,012 970 108 450 1,635 1,561 1,603 1,529 32 32 292 264 221 205 71 59 151 191 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 1,473 1,165 1,292 1,508 1,467 1,434 2,052 270 206 215 227 206 218 264 362 288 337 369 349 294 434 575 472 520 618 588 612 869 266 198 220 294 324 310 486 964 778 844 900 814 813 1,151 87 61 72 81 85 85 120 422 325 376 527 571 536 781 1,510 1,196 1,322 1,546 1,500 1,469 2,084 1,473 1,165 1,292 1,508 1,467 1,434 2,052 37 31 30 38 33 35 32 246 195 232 283 284 482 621 197 158 180 227 233 421 528 49 37 53 56 51 61 93 216 217 240 318 413 401 497 1972—M ar................ A pr................. M ay ............... Jun e ............... July................. Aug................ Sept................ Oct.................. N ov................ D ec................. 2,313 2,204 2,318 2,315 2,244 2,424 2,426 2,446 2,395 2,369 306 259 282 337 303 349 355 372 353 486 383 381 547 452 443 475 474 469 400 330 1,033 1,083 999 992 1,009 1,014 1,096 1,125 1,106 1,080 591 482 489 534 488 586 501 480 536 473 1,310 1,215 1,308 1,283 1,319 1,373 1,382 1,315 1,324 1,207 142 146 125 137 116 137 125 153 134 128 861 843 886 895 809 914 920 978 937 1,034 206 213 228 226 208 231 204 218 187 153 204 212 226 223 206 229 203 217 186 151 2 2 2 3 1 2 1 2 1 2 48 38 42 42 36 40 37 34 29 48 38 29 32 32 26 30 28 25 21 42 11 9 9 10 9 10 9 9 8 6 49 53 52 55 48 52 49 54 50 38 1973—J a n . '.............. F e b .r ............. M ar................ 2,497 2,457 2,259 348 358 306 599 579 404 1,086 1,090 1,143 464 430 406 1,450 1,377 1,239 163 124 121 884 956 899 147 140 201 147 138 200 1 2 2 18 21 28 12 14 20 7 7 8 41 43 N ote.—Starts are Census Bureau series (including farm starts) except for G ovt.-underwritten, which are from Federal Housing Admin, and Veterans Admin, and represent units started, including rehabilitation 5;89 units under FH A , based on field office reports o f first compliance inspec tions. D ata may not add to totals because o f rounding. Mobile home shipments are as reported by Mobile Homes M anufac turers Assn. A 64 EM PLOYM ENT □ MAY 1973 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total noninstitutional population (N.S.A.) Period N ot in labor force (N.S.A.) Total labor force (S.A.) U nem ployed Unemploy ment rate2 (p ercen t; S.A.) Em ployed1 Total Total In nonagri cultural industries In agriculture 1967 3......... 196 8 196 9 197 0 197 1 197 2 133,319 135,562 137,841 140,182 142,596 145,775 52,527 53,291 53,602 54,280 55,666 56,785 80,793 82,272 84,240 85,903 86,929 88,991 77,347 7&,737 80,734 82,715 84,113 86,542 74,372 75,920 77,902 78,627 79,120 81,702 70,527 72,103 74,296 75,165 75,732 78,230 3,844 3,817 3,606 3,462 3,387 3,472 2.975 2,817 2,832 4,088 4,993 4,840 3.8 3.6 3.5 4.9 5.9 5 .6 1972—Apr. May, June, July. Aug. Sept. Oct.. Nov. Dec. 145,227 145,427 145,639 145,854 146,069 146,289 146,498 146,709 146,923 57.440 57.441 55.191 54,850 55,311 57.191 56,907 57,309 57,486 88,647 88,850 88,947 88,985 89,337 89,471 89,651 89,454 89,707 86,184 86,431 86,554 86,597 86,941 87,066 87,236 87,023 87.267 81,209 81,458 81,752 81,782 82,061 82,256 82,397 82,525 82,780 77,896 78,120 78,421 78,339 78,451 78,677 78,739 78,969 79,130 3,313 3,338 3,331 3,443 3,610 3,579 3,658 3,556 3,650 4.975 4,973 4,802 4,815 4,880 4,810 4,839 4,498 4,487 5.8 5 .8 5.5 5 .6 5 .6 5.5 5.5 5 .2 5.1 1973—Jan.. Feb. Mar, Apr. 147,129 147,313 147,541 147,729 59,008 58,238 57,856 57,906 89,325 89,961 90,629 90,700 86,921 87,569 88.268 88,350 82,555 83,127 83,889 83,917 79,054 79,703 80,409 80,606 3,501 3,424 3,480 3,311 4,366 4,442 4,379 4,433 5 .0 5.1 5.0 5 .0 1 Includes self-employed, unpaid family, and domestic service workers. 2 Per cent o f civilian labor force. 3 Beginning 1967, data not strictly comparable with previous data. Description o f changes available from Bureau of Labor Statistics. N ote.—Bureau o f Labor Statistics. Inform ation relating to persons 16 years o f age and over is obtained on a sample basis. M onthly data relate to the calendar week that contains the 12th day; annual data are averages o f monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) C ontract construc tion Total M anufac turing 65,857 67,915 70,284 70,593 70,645 72,764 19,447 19,781 20,167 19,349 18,529 18,933 613 606 619 623 602 607 3,208 3,285 3,435 3,381 3,411 3,521 1972—A pr.................................................... M ay................................................... June................................................... Ju ly ................................................... Aug.................................................... Sept................................................... O ct..................................................... N ov................................................... Dec.................................................... 72,246 72,592 72,699 72,661 72,984 73,176 73,589 73,899 74,026 18,790 18,892 18,931 18,861 18,930 19,029 19,219 19,324 19,419 605 604 600 599 602 606 610 609 607 1973—Jan ..................................................... Feb.................................................... M ar.* ............................................... A pr.*................................................ 74,245 74,725 74,933 75,042 19,469 19,578 19,627 19,740 1972—A pr.................................................... M ay.................................................. June.................................................. Ju ly ................................................... Aug................................................... Sept................................................... Oct.................................................... N ov................................................... D ec.................................................... 71,979 72,612 73,463 72,469 72,975 73,519 74,118 74,449 74,778 1973—Jan ..................................................... Feb.................................................... M ar.*............................................... A pr.*................................................ 73,343 73,724 74,255 74,826 Period 1971............................................................... Transporta tion & pub lic utilities Trade Finance Service G overn ment 4,261 4,310 4,429 4,493 4,442 4,495 13,606 14,084 14,639 14,914 15,142 15,683 3,225 3,382 3,564 3,688 3,796 3,927 10,099 10,623 11,229 11,612 11,669 12,309 11,398 11,845 12,202 12,535 12,858 13,290 3,493 3,535 3,550 3,489 3,544 3,551 3,568 3,524 3,452 4,481 4,490 4,491 4,473 4,478 4,499 4,540 4,549 4,558 15,561 15,632 15,682 15,692 15,758 15,794 15,835 15,954 15,946 3,892 3,913 3,931 3,927 3,936 3,953 3,969 3,981 3,991 12,206 12,252 12,290 12,341 12,419 12,379 12,451 12,497 12,549 13,218 13,274 13,224 13,279 13,317 13,365 13,397 13,461 13,504 610 613 611 603 3,502 3,594 3,609 3,550 4,574 4,580 4,589 4,591 15,989 16,127 16,215 16,188 3,999 4,014 4,024 4,031 12,621 12,682 12,695 12,726 13,481 13,537 13,563 13,613 18,639 18,751 19,070 18,703 19,147 19,298 19,359 19,414 19,423 600 605 614 614 616 613 609 607 603 3,374 3,528 3,717 3,740 3,838 3,785 3,782 3,630 3,373 4,445 4,481 4,549 4,531 4,527 4,548 4,549 4,554 4,558 15,436 15,570 15,749 15,653 15,691 15,774 15,887 16,162 16,669 3,880 3,909 3,966 3,990 3,995 3,957 3,957 3,965 3,971 12,218 12,338 12,487 12,489 12,481 12,391 12,463 12,472 12,474 13,387 13,430 13,311 12,749 12,680 13,153 13,512 13,645 13,707 19,279 19,420 19,520 19,590 598 598 598 598 3,155 3,184 3,299 3,429 4,510 4,507 4,543 4,554 15,865 15,776 15,895 16,108 3,959 3,978 4,000 4,019 12,406 12,530 12,619 12,739 13,571 13,731 13,781 13,789 Mining seasonally adjusted not seasonally adjusted N o t e . —B ureau of L ab o r Statistics; d ata include all full- and p arttim e employees who w orked during, o r received pay for, the pay pe riod th a t includes the 12th of the m onth. Proprietors, self-employed persons, dom estic servants, u n paid fam ily w orkers, and m em bers of A rm ed Forces are excluded. Beginning w ith 1970, series has been adjusted to M ar. 1971 bench m ark. MAY 1973 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Industry group 1972 N ot seasonally adjusted1 1973 1972 1973 Apr. Feb. M ar.* Apr.* Apr. Feb. M ar.* Apr.* 13,711 14,396 14,441 14,545 13,578 14,258 9 14,347 14,408 Durable goods........................................................................ Ordnance and accessories.......................................... Lum ber and wood products...................................... Furniture and fixtures................................................. Stone, clay, and glass pro d u cts................................ Primary metal industries............................................ 7,805 91 524 402 519 965 8,379 103 542 425 547 1,031 8,414 102 543 427 550 1,026 8,503 103 547 432 551 1,032 7,774 90 512 397 515 977 8,334 102 527 424 527 1,032 8,398 102 531 425 537 1,037 8,469 101 535 427 546 1,045 Fabricated metal products........................................ M achinery..................................................................... 1,038 1,200 1,214 1,252 269 331 1,103 1,328 1,337 1,324 295 344 1,106 1,340 1,348 1,331 297 344 1,119 1,354 1,366 1,357 298 344 1,030 1,210 1,203 1,250 268 323 1,096 1,341 1,333 1,331 294 329 1,102 1,354 1,342 1,340 297 333 1,110 1,365 1,354 1,354 297 335 Apparel and related products................................... Paper and allied products.......................................... 5,906 1,186 63 865 1,173 531 6,017 1,185 61 902 1,173 552 6,027 1,183 63 901 1,174 554 6,042 1,180 65 901 1,189 550 5,804 1,109 55 863 1,166 528 5,924 1,112 58 898 1,175 546 5,949 1,111 57 900 1,183 550 5,939 1,103 57 898 1,182 547 Chemicals and allied products.................................. Petroleum refining and related industries............... Rubber and misc. plastic products............................ Leather and leather products.................................... 656 575 117 478 262 661 587 115 529 252 662 592 116 530 252 663 590 115 535 254 656 578 115 475 259 660 585 112 526 252 663 592 113 529 251 663 593 114 532 251 Transportation equipm ent........................................ Instruments and related products............................ Food and kindred products...................................... Tobacco m anufactures............................................... 1 D ata adjusted to 1971 benchmark. N ote.—Bureau o f Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th o f the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average weekly earnings1 (dollars per week; N.S.A.) Average hours w orked1 (per week; S.A.) Industry group 1972 Apr. 1973 Feb. M ar.* 1972 Apr.* Apr. 1973 Feb. Mar.* Average hourly earnings1 (dollars per h o u r; N.S.A.) 1972 Apr.* Apr. 1973 Feb. M ar.* Apr.* 40.8 40.9 40.9 41.1 152.28 161.18 162.38 163.61 3.76 3.97 3.98 4.01 Ordnance and accessories............................. Lum ber and wood p roducts........................ Furniture and fixtures.................................... Stone, clay, and glass products................... Primary metal industries.............................. 41.4 42.2 41.1 4 0.7 42 .0 41.4 42.0 42.7 40.6 40.6 42.2 42.4 41.6 42.3 41.0 40.6 42.2 4 2.2 42.0 165.21 175.97 175.97 177.64 41.9 170.93 177.21 176.38 175.98 41.3 133.99 139.15 141.92 145.79 40.7 121.50 126.17 128.15 128.72 42.5 161 32 167.26 170.52 173.84 42.4 191.36 206.06 206.91 208.80 4.01 4.06 3.26 3.03 3.85 4.60 4.23 4.15 3.47 3.17 4.04 4.86 4.23 4.15 3.47 3.18 4.06 4.88 4.26 4.21 3.53 3.21 4.10 4.89 Fabricated metal products........................... M achinery........................................................ Electrical equipment and supplies.............. Transportation equipm ent........................... Instrum ents and related products............... Miscellaneous m anufacturing industries... 41.4 41.9 40.8 43.0 4 0.7 39.6 41.9 42.8 41.1 43.3 40.8 39.3 4 1.7 42.7 40.6 42.1 40.7 39.2 4 2.0 42.7 40.9 43.5 40.9 39.1 3.94 4.22 3.62 4.69 3.70 3.09 4.15 4.45 3.78 5.00 3.82 3.22 4.15 4.46 3.79 4.96 3.83 3.23 4.19 4.5 0 3.81 5.01 3.85 3.20 Nondurable goods................................................... Food and kindred products......................... Tobacco m anufactures.................................. Textile-mill products...................................... Apparel and related p roducts..................... Paper and allied p ro d u cts............................ 39.8 40.7 34.1 41.7 36.2 42.9 39.7 40.2 35.6 41.1 36.0 43.0 39.8 40.2 36.0 41.3 36.1 43.0 39.9 135.49 141.09 40.2 143.60 148.50 36.4 114.53 126.29 41.9 111.92 117.79 36.4 92.88 97.38 43.0 164.44 173.38 142.96 143.35 149.29 149.29 128.76 134.87 119.07 120.35 99.10 99.19 173.79 175.50 3.43 3.59 3.46 2.71 2.58 3.86 3.59 3.75 3.65 2.88 2.72 4.07 3.61 3.77 3.70 2.89 2.73 4.07 3.62 3.77 3.81 2.90 2.74 4.11 38.0 38.0 41.7 42.0 42.4 41.9 41.3 41.5 39.1 j 37.7 38.0 4 2.0 42 .0 41.6 37.9 38.0 167.83 41.7 172.63 42.2 209.53 41.5 145.55 38.8 102.60 172.21 175.18 175.01 181.83 183.12 183.52 209.71 212.80 220.81 153.68 153.64 153.68 104.81 105.28 105.18 4.44 4.12 4.93 3.55 2.70 4.58 4.35 5.09 3.73 2.78 4.61 4.36 5.14 3.72 2.80 4.63 4.38 5.22 3.73 2.79 Printing, publishing, and allied industries. Chemicals and allied products..................... Petroleum refining and related industries . R ubber and misc. plastic products............. Leather and leather products....................... 1 Data adjusted to 1971 benchmark. 161.54 176.40 146.25 196.51 149.85 122.06 171.81 172.23 174.30 190.46 191.78 191.70 153.47 153.87 154.31 213.50 208.32 212.42 154.71 155.88 156.70 125.90 126.94 124.80 N ote.—Bureau of Labor Statistics; data are for production and related workers only. A 66 PRICES □ MAY 1973 CONSUMER PRICES (1967 = 100) Housing All items Period Food Total Fuel oil and coal Gas and elec tricity 40.5 48.0 81.4 79.6 86.3 86.9 87.9 89.0 90.8 89.2 91.0 91.5 93.2 92.7 98.6 99.4 99.4 9 9.4 99.4 Homeownership R ent H ealth and recreation 1929............................ 1933............................ 1941............................ 1945............................ 51.3 38.8 44.1 53.9 48.3 30.6 38.4 50.7 53.7 59.1 76 .0 54.1 57 .2 58.8 1960............................ 1961............................ 1962............................ 1963............................ 1964............................ 88.7 89.6 90.6 91.7 92.9 88.0 89.1 89.9 9 1.2 9 2 .4 9 0.2 9 0.9 91.7 92.7 93.8 91.7 92.9 9 4 .0 9 5 .0 95.9 1965............................ 1 9 6 6 ............................ 1967............................ 1968............................ 1969............................ 94.5 97 .2 100.0 104.2 109.8 94 .4 99.1 100.0 103.6 108.9 94.9 97.2 100.0 104.2 110.8 9 6.9 92.7 9 8.2 96.3 100.0 100.0 102.4 105.7 105.7 116.0 94.6 97.0 100.0 103.1 105.6 1970............................ 1971............................ 1972............................ 116.3 121.3 125.3 114.9 118.4 123.5 118.9 124.3 129.2 110.1 128.5 115.2 133.7 119.2 140.1 1972—M ar................. A pr................. M ay ............... Ju n e ............... Ju ly ................. Aug................. Sept................ O ct.................. D ec................. 124.0 124.3 124.7 125.0 125.5 125.7 126.2 126.6 126.9 127.3 122.4 122.4 122.3 123.0 124.2 124.6 124.8 124.9 125.4 126.0 127.9 128.2 128.5 129.0 129.5 129.9 130.1 130.4 130.8 131.2 t r l 18.0 138.2 t r l l 8 . 4 138.5 t r l 18.6 138.9 t r l l 9 . 0 139.6 t r l l 9 . 2 140.7 J rl 19.6 141.3 119.9 141.5 120.3 141.8 120.5 142.0 121.0 142.6 1973—Jan.................. Feb................. M ar................ 127.7 128.6 129.8 128.6 131.1 134.5 131.4 132.0 132.3 121.5 122.1 122.6 142.6 142.9 143.2 F u r Apparel Trans nish and porta ings upkeep tion and opera tion Total M ed ical care Per sonal care R ead ing and recrea tion O ther goods and serv ices 37.0 42.1 41.2 55.1 47.7 62.4 49.2 5 6.9 48.5 36.9 44.8 61.5 44.2 47.8 93.8 93.7 93.8 94.6 95 .0 89.6 90 .4 90.9 91.9 92.7 89.6 90.6 92.5 93.0 94.3 85.1 86.7 88.4 90.0 91.8 79.1 81.4 83.5 85.6 87.3 90.1 90.6 92.2 9 3 .4 94.5 87.3 89.3 91.3 92.8 9 5 .0 87.8 88.5 89.1 90 .6 9 2 .0 99.4 99.6 100.0 100.9 102.8 95.3 97 .0 100.0 104.4 109.0 93.7 96.1 100.0 105.4 111.5 95.9 9 7.2 100.0 103.2 107.2 93 .4 96.1 100.0 105.0 110.3 89.5 93 .4 100.0 106.1 113.4 95 .2 97.1 100.0 104.2 109.3 95.9 97.5 100.0 104.7 108.7 94 .2 97 .2 100.0 104.6 109.1 110.1 117.5 118.5 107.3 114.7 120.5 113.4 118.1 121.0 116.1 119.8 122.3 112.7 118.6 119.9 116.2 122.2 126.1 120.6 128.4 132.5 113.2 116.8 119.8 113.4 119.3 122.8 116.0 120.9 125.5 118.7 118.6 118.7 117.8 117.7 117.9 118.0 118.1 119.3 119.4 119.7 120.2 120.5 120.3 120.3 120.5 120.5 120.9 122.2 122.5 120.1 120.5 120.8 121.0 121.1 121.2 121.6 121.8 122.1 122.3 121.3 121.8 122.5 122.1 121.1 120.8 123.1 124.3 125.0 125.0 118.4 118.6 119.5 119.8 120.3 120.5 121.0 121.2 121.4 121.3 125.0 125.5 125.8 126.1 126.3 126.5 126.8 127.2 127.4 127.5 131.4 131.7 132.0 132.4 132.7 132.9 133.1 133.9 134.1 134.4 118.7 119.1 119.7 120.0 120.0 120.2 120.5 120.8 121.0 121.5 121.7 122.3 122.5 122.9 123.0 123.0 123.7 124.0 124.1 124.0 124.6 125.1 125.4 125.6 125.8 126.0 126.2 126.4 126.4 126.5 120.7 127.2 127.8 124.1 124.5 125.0 122.2 122.6 123.0 123.0 123.6 124.8 121.0 121.1 121.5 127.8 128.1 128.6 134.9 135.3 135.8 121.8 122.4 123.1 124.1 124.3 124.5 126.7 127.1 127.6 t Indexes affected by refunds o f residential telephone series changes in California and retroactive rent increases in New Y ork City. N o te.— Bureau o f Labor Statistics index for city wage-eamers and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Period Pro All cessed com pFarm ro d foods m odi ucts and ties feeds Total Tex tiles, etc. R ub Hides, Fuel, Chem icals, ber, etc. etc. etc. etc. Lum Paper, M et als, ber, etc. etc. etc. M a chin F urni ery ture, and equip etc. ment 95.3 94.8 94.8 94.7 95.2 99.5 97.7 98.6 98.5 99.2 90.8 91.7 92.7 9 0.0 90.3 95.3 91.0 91.6 93.5 95.4 92.0 91.9 92.0 92.2 92.8 N on me tallic min erals Trans porta Mis tion cella equip neous m en t1 97.2 97.6 97.6 97.1 97.3 93 .0 93.3 93.7 94.5 95 .2 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 9 8.4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 95.9 97 .7 100.0 102.2 100.8 105.2 1970................................ 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 1971................................ 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 1972................................ 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 104.5 109.9 110.3 112.8 113.8 114.6 I9 6 0 ................................ 1961................................ 1962................................ 1963................................ 1964................................ 94.9 94.5 94.8 94.5 94.7 97.2 96.3 9 8.0 9 6 .0 94.6 1965................................ 96.6 98.7 1966................................ 99.8 105.9 1967................................ 100.0 100.0 1968................................ 102.5 102.5 1969................................ 106.5 109.1 89.5 91 .0 91.9 92.5 92.3 95.5 96.4 99.8 101.2 98.5 100.1 100.0 100.0 100.0 102.2 102.5 103.7 107.3 106.0 106.0 96.1 101.8 103.1 97.2 100.7 99.2 96.7 99.1 96.3 96.3 97.9 96.8 93.7 98.3 95.5 116.9 117.5 118.2 118.6 119.7 120.3 120.6 121.3 121.9 104.1 104.4 104.3 104.2 104.4 104.4 104.4 104.7 104.8 141.1 142.7 144.2 146.1 148.1 148.5 149.2 149.4 149.8 98.1 95.2 96.3 95.6 95.4 112.8 113.2 113.5 113.7 114.1 114.3 114.7 115.0 115.1 92 .4 91.9 91.2 91.3 93.8 123.5 123.6 123.6 123.5 123.7 124.0 124.1 124.1 124.4 117.6 117.9 118.1 118.3 118.3 118.3 118.4 118.5 118.6 1972—A pr..................... M ay ................... Ju n e ................... July..................... Aug..................... Sept.................... O ct...................... N ov..................... D ec..................... 117.5 118.2 118.8 119.7 119.9 120.2 120.0 120.7 122.9 117.3 117.6 117.9 118.1 118.5 118.7 118.8 119.1 119.4 112.6 113.3 113.6 114.0 114.1 114.3 114.8 115.1 115.6 127.2 129.5 130.9 131.6 134.6 135.7 139.8 144.0 142.2 1973—Jan...................... F eb..................... M ar.................... A pr..................... 124.5 144.2 132.4 120.0 126.9 150.9 137.0 121.3 129.7 160.9 141.4 122.7 130.7 160.6 139.8 124.4 116.6 117.4 119.0 120.8 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 119.1 122.2 124.0 128.0 128.2 128.6 125.5 128.8 137.5 117.7 118.6 119.6 121.5 121.0 121.8 121.8 123.1 129.4 1 For transportation equipment, Dec. 1968=100. 108.7 108.8 108.9 109.2 109.5 109.5 109.5 109.8 109.8 99 .0 98.4 97.7 97.0 97.4 125.6 125.9 125.8 126.2 126.7 126.9 127.3 127.3 127.4 113.7 113.8 114.2 114.1 114.2 114.2 112.9 113.0 114.2 114.1 114.1 114.2 114.9 115.1 115.2 115.0 115.0 115.1 112.6 128.2 113.1 128.4 113.5 129.0 114.1 130.0 114.1 114.2 114.5 114.9 115.8 117.1 117.9 118.6 111.0 111.1 111.2 111.4 111.7 112.0 112.0 112.3 112.4 MAY 1973 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1973 1972 1972 G roup Apr. Feb. M ar. Apr. 117.6 96.0 133.8 94.1 122.1 122.1 87.2 118.5 118.0 146.9 128.2 177.8 137.0 140.0 128.5 130.1 178.1 140.5 158.5 126.1 194.4 164.8 152.7 130.3 152.6 188.1 143.3 ■176.0 130.9 184.1 185.8 154.7 130.4 144.9 186.9 142.1 112.8 123.6 117.5 118.3 121.1 117.2 127.8 118.9 120.9 120.7 113.8 108.5 120.8 153.1 124.0 125.9 124.4 120.0 134.7 123.1 120.3 122.2 117.3 182.5 121.3 165.1 126.8 126.2 125.7 120.8 174.1 139.3 132.5 127.0 118.7 182.3 123.7 163.2 127.2 126.6 126.9 121.4 176.7 145.0 136.1 125.6 118.7 166.7 120.5 93.0 107.2 114.2 108.7 131.1 128.2 119.2 111.8 116.8 110.3 120.4 130.0 127.7 115.2 117.0 110.5 120.4 133.3 129.8 118.7 117.7 110.5 121.9 P rocessed fo o d s and feed s: Cereal and bakery products............... M eat, poultry, and fish........................ Dairy p roducts...................................... Processed fruits and vegetables.......... Sugar and confectionery...................... Beverages and beverage m aterials. . . Animal fats and oils............................. Crude vegetable oils.............................. Refined vegetable oils........................... Vegetable oil end products................. Miscellaneous processed foods........... M anufactured animal feeds................. 188.6 138.1 122.4 113.7 272.7 162.9 130.9 129.4 246.4 164.5 131.1 129.4 270.2 161.1 131.5 129.9 191.2 155.3 112.5 120.5 113.2 106.6 206.9 164.6 118.6 125.9 114.7 118.7 207.4 164.6 118.9 126.8 114.9 119.4 213.8 166.9 120.1 127.6 117.1 127.9 101.5 118.3 103.0 102.4 112.2 92.2 88.3 113.5 101.8 119.4 107.7 103.6 139.1 93.1 90 .0 114.2 101.9 119.9 107.7 103.8 173.9 93.6 90.5 115.1 102.6 120.3 108.9 103.8 184.0 94.5 91.3 116.3 R ubber and rubber pro d u cts............. C rude rubber...................................... Tires and tu b es.................................. Miscellaneous rubber p ro d u c ts.. . . Plastic construction products (Dec. 112.9 98.2 108.4 120.4 115.1 104.8 109.3 122.3 115.5 107.2 109.3 122.5 115.7 108.5 109.4 122.5 1969 = 100)............................................. 93.6 94.3 93.9 93.8 98 .4 98.8 99.1 99.2 98.4 96.2 95.2 96.6 155.1 126.6 128.9 121.1 182.3 133.4 149.4 135.1 195.8 134.8 176.8 140.9 207.2 141.2 182.5 147.4 Fuels and related products , an d pow er: C o al.......................................................... C oke......................................................... Gas fuels.................................................. Electric po w er........................................ Crude petroleum .................................... Petroleum products, refined................ R ubber and plastic produ cts: U nsupported plastic film and sheeting (Dec. 1970= 1 0 0 )................................. Lam inated sheets, high pressure (Dec. 1970= 1 0 0 )................................. Lumber and w ood products: Lum ber.................................................... Mill w ork................................................. Plyw ood................................................... Other wood products............................ N ote.—Bureau of Labor Statistics indexes. Apr. 113.1 111.5 131.0 115.9 105.6 112.7 106.1 116.9 111.5 135.8 118.5 109.7 117.3 108.1 118.6 111.5 136.9 119.2 110.7 120.0 108.5 120.2 122.2 149.3 120.2 113.0 120.4 109.3 128.3 Iron and steel................................... 130.9 Steelmill p roducts.......................... 117.6 N onferrous m etals......................... . 127.3 M etal containers............................ . 119.6 H ardw are......................................... 119.0 Plumbing equipm ent..................... . 117.9 H eating equipm ent......................... Fabricated structural metal products 122.1 Miscellaneous metal p roducts........... 124.3 133.0 132.7 121.0 130.8 121.9 121.6 119.2 124.7 125.8 133.3 133.2 128.3 135.7 122.1 123.3 119.5 125.0 126.7 134.0 133.7 131.4 135.7 122.8 124.8 120.5 125.7 127.3 122.1 125.7 119.7 124.4 127.4 122.5 124.7 128.6 123.4 124.7 130.4 124.5 121.9 124.3 124.9 125.6 123.4 110.2 119.6 126.5 111.0 121.5 127.0 111.3 122.4 128.5 111.7 123.1 116.9 119.2 98.2 107.5 92.8 124.5 119.4 123.8 100.9 108.2 92.4 128.1 120.0 123.8 101.1 108.4 92.2 129.1 121.8 123.8 101.7 108.3 92.2 130.3 121.1 126.4 125.1 122.5 129.2 128.9 124.1 129.9 129.6 124.1 131.6 130.8 117.2 127.1 131.2 114.9 136.2 126.4 121.5 136.3 131.2 115.8 136.4 128.0 122.2 136.3 131.2 118.1 136.4 128.3 123.0 136.3 134.1 119.6 136.8 128.5 118.1 128.4 118.2 132.2 118.6 132.7 119.0 133.4 114.0 117.4 111.7 106.2 116.5 121.0 113.1 107.5 117.1 121.8 113.1 108.5 117.2 122.0 113.1 108.4 115.0 118.9 119.9 122.2 Pulp, paper and products, excluding building paper and b oard............. W oodpulp............................................ W astepaper.......................................... P ap er..................................................... Paperboard.......................................... Converted paper and p ap erb o ard .. Building paper and b o a rd ................ Agricultural machinery and equip... Construction machinery and eq u ip .. M etalworking machinery and equip G eneral purpose machinery and equipm ent.......................................... Special industry machinery and equipm ent.......................................... Electrical machinery and equip......... Miscellaneous machinery................... Furniture and household durables: Household furniture.......................... Commercial furniture........................ Floor coverings.................................. H ousehold appliances....................... Hom e electronic equipm ent............. O ther household durable go o d s. . . Nonmetallic mineral products: Chemicals and allied products: Industrial chem icals.............................. Prepared p ain t........................................ Paint m aterials....................................... Drugs and pharmaceuticals................. Fats and oils, inedible.......................... Agricultural chemicals and products. Plastic resins and m aterials................. O ther chemicals and p ro d u cts........... M ar. Machinery and equipment: Hides, skins , leather , and products: Hides and skins...................................... L eather..................................................... F ootw ear................................................. O ther leather products......................... Feb. M etals and metal products: Textile products and apparel: C otton p ro d u cts.................................... Wool products....................................... M anm ade fiber textile p ro d u cts. . . . A pparel.................................................... Textile housefum ishings...................... Miscellaneous textile p ro d u cts........... Apr. Pulp , paper , and allied products: Farm products: Fresh and dried produce..................... G rains...................................................... Livestock................................................. Live poultry............................................ Plant and animal fibers........................ Fluid m ilk ............................................... E ggs.......................................................... H ay and seeds........................................ O ther farm products............................. 1973 Group F lat glass.............................................. Concrete ingredients.......................... Concrete products.............................. Structural clay products excluding refractories....................................... R efractories......................................... Asphalt roofing.................................. Gypsum products.............................. Glass containers.................................. O ther nonmetallic m inerals............. Transportation equipment: M otor vehicles and equipm ent. R ailroad equipm ent..................... Miscellaneous products: Toys, sporting goods, small arms, am m unition....................................... Tobacco products................................ N otions................................................... Photographic equipment and supplies Other miscellaneous products........... A 68 NA TIO N A L PRODUCT AND INCOME □ MAY 1973 GROSS NATIONAL PRODUCT (In billions o f dollars) Item 1929 1933 1941 1950 1968 1969 1970 1971 I ! ! 103.1 10 1 .4 77.2 9 .2 37.7 30.3 Gross private domestic investment..................... 16.2 1 .4 17.9 1 4 .5 1 0 .6 3 .0 2 .4 1 3 .4 9 .5 2 .9 6 .6 Change in business inventories..................... Government purchases of goods and services.. F ederal ................................................................ National defense.......................................... O ther............................................................... Gross national product in constant (1958) dollars................................................................. 45.8 3 .5 22.3 20.1 .9 5 .0 5.6 1.5 .6 4 .0 3.8 .5 1.7 - 1 . 6 1.8 - 1 . 4 80.6 191.0 536.2 579.5 616.8 664.9 721.0 9 .6 30.5 84.0 90.8 90.5 103.5 116.1 42.9 98.1 230.8 245.9 264.4 278.1 299.5 28.1 62.4 221.3 242.7 261.8 283.3 305.4 54.1 126.0 139.0 137.1 152.0 180.4 II IV I* 3.9 3.7 4 .5 4 .0 9 .2 18.7 19.4 18.6 6.8 6 .0 30.3 58.5 30.1 29.5 7.1 6.9 34.2 64.3 32.6 32.0 7.8 7.7 1 .8 13.8 12.0 2 .5 50.6 48.1 1.9 1 3.6 55.5 62.9 53.6 59.3 36.0 64.9 31.2 30.7 4 .9 4.8 183.2 193.4 199.4 42.2 78.3 54.0 53.2 5.9 5.6 41.3 74.8 51.6 51.0 .4 .1 42.0 77.2 52.8 52.1 5 .0 4.3 1 7 5 .2 18 3 .1 1 2 0 .7 1 2 6 .1 1 9 1 .5 1 3 2 .3 43.7 82.3 57.0 56.1 10.3 10.1 46.3 86.0 59.2 58.3 7.9 7 .5 .7 - 4 . 2 66.1 73.7 65.4 77.9 -4 .6 70.7 75.3 - 5 .2 70.0 75.2 -3 .4 - 3 .5 74.4 79.6 77.8 83.1 -4 .4 86.6 9 1 .0 249.4 254.1 255.6 259.3 266.8 1 0 5 .7 1 08.1 1 0 5 .4 1 0 4 .0 1 0 7 .0 76.7 28.9 143.7 78.6 29.6 146.0 75.1 73.2 30.2 30.8 150.2 155.2 75.0 32.1 159.8 766.5 783.9 796.1 811.6 827.1 38.4 67.4 42.6 42.0 3.6 2.4 8 .0 24.8 37.9 199.6 210.0 219.0 232.8 254.6 1 .3 2 .0 1 6 .9 1 8 .4 6 .0 13.8 3.1 7.9 14.1 78.3 78.4 75.1 71.4 75.9 4.3 20.5 20.4 21.5 26.3 29.9 19.5 100.8 111.2 122.5 135.0 148.8 9 7 .8 10 5.8 203.6 141.5 263.7 355.3 706.6 725.6 722.1 741.7 789.5 i N ote.—Dept, o f Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation o f series, 745.7 773.7 120.8 130.1 310.4 322.9 314.5 320.7 177.0 8 .5 9 6 .5 728.6 118.6 302.0 308.0 1 7 2 .0 1 1 9 .2 1 .3 5.9 4 .6 9 8 .8 713.4 113.9 297.2 302.4 168.1 .4 2 .4 2 .0 9 8 .8 696.1 111.0 288.3 296.7 1 6 7 .7 1 1 6 .1 4 7 .3 1 1 8 .9 131 .1 1 3 2 .2 1 4 8 .3 1 7 4 .5 2 7 .9 8 8 .8 9 8 .5 1 0 0 .9 1 0 5 .8 1 2 0 .6 1.1 7 .0 5.9 7 .2 1973 1 I III 1 55.6 124.5 284.8 864.2 930.3 976.4 1,050.4 1,151.8 1,109.1 1 ,1 3 9 .4 1 ,1 6 4 .0 1,194.9 1,235.5 5 7 .2 120.1 2 7 8 .0 8 5 7 .1 9 2 2 .5 ! 9 7 1 .5 1,046.7 1.145.9 1 ,1 0 8 .6 1 ,1 3 4 .4 1 ,1 5 6 .0 1,184.6 1,227.6 D urable goods................................................... Nondurable goods............................................ Structures................................................... Producers’ durable equipm ent.............. Residential structures.................................. 1972 1972 41.8 79.0 54.4 53.7 8 .0 7.9 see the Survey o f Current Business , July 1968, July 1969, July 1970, July 1971, July 1972, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1972 1929 1933 1941 1950 1968 1969 1970 1971 1973 1972 Item I II III IV Ip National income.................................................... 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 935.6 903.1 922.1 943.0 974.2 Compensation oi employees............................... 51.1 29.5 64.8 154.6 514.6 566.0 603.8 644.1 705.3 682.7 697.8 710.2 730.3 757.3 Wages and salaries ........................................... 5 0 .4 2 9 .0 6 2 .1 45.5 .3 4 .6 23.9 .3 4.9 51.9 1.9 8.3 .7 .5 2 .7 7 .8 49.7 56.3 6 1 .9 .1 .6 .1 .4 2 .0 .1 4 .0 3.8 24.3 25.4 27.8 28.4 29.7 32.1 Proprietors’ income............................................. Business and professional............................ F a rm .................................................................. 15.1 9 .0 6 .2 5.9 3.3 2.6 17.5 11.1 6 .4 37.5 24.0 13.5 64.2 49.5 14.7 67.2 50.5 16.7 Rental income oi persons.................................. 5 .4 2 .0 3 .5 9 .4 21.2 Corporate profits and inventory valuation adjustment........................................................ 10.5 - 1 .2 15.2 37.7 Profits before ta x ........................................... 1 0 .0 1 .0 1 7 .7 4 2 .6 Private........................................................... M ilitary......................................................... Government civilian................................... Supplements to wages and salaries .............. Employer contributions for social in surance ..................................................... . O ther labor income.................................... 1 4 6 .8 464.9 509.7 5 4 1 .9 5 7 3 .5 6 2 6 .5 6 0 6 .6 6 2 0 .0 6 3 0 .6 7 0 .7 7 8 .8 7 6 .1 7 7 .8 7 9 .6 8 1 .5 8 8 .9 34.1 36.5 38.5 40.3 37.3 38.8 38.0 39.8 38.8 40.8 39.8 41.8 46.2 42.7 66.8 49.9 16.9 70.0 52.6 17.3 75.2 55.6 19.6 73.3 54.3 19.1 73.2 54.4 18.7 75.3 56.2 19.1 79.0 57.4 21.6 81.2 58.7 22.5 22.6 23.3 24.5 25.6 25.2 24.2 26.2 26.9 26.5 84.3 79.8 69.9 78.6 88.2 81.8 86.1 89.6 95.6 8 7.6 39.9 47.8 23.6 24.2 84.9 40.1 44.8 24.3 20.5 7 4 .3 8 3 .3 9 4 .3 8 8 .2 9 1 .6 9 5 .7 1 0 1 .5 34.1 37.3 41.3 38.8 40.1 41.8 44.3 4 0 .2 4 5 .9 5 3 .0 5 7 .2 25.4 20.5 26.4 26.6 5 1 .5 2 6 .2 5 3 .9 24.8 15.4 4 9 .5 2 6 .0 23.5 25.3 26.5 27.3 26.7 30.5 1.4 .5 7 .6 8 .6 .4 10.1 5.8 2.8 2 .0 - 1 .6 4 .4 5.7 17.8 24.9 8.8 16.0 Inventory valuation adjustm ent.................. .5 - 2 .1 -2 .5 -5 .0 -3 .3 -5 .1 -4 .4 -4 .7 -6 .0 -6 .5 -5 .5 -6 .1 Net interest........................................................... 4 .7 4.1 3 .2 2 .0 26.9 30.5 34.8 38.5 41.3 40.1 40.9 41.7 Profits tax liability...................................... Profits after ta x .......................................... Dividends................................................. U ndistributed pro fits............................ N ote.—D ept, o f Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N ote to table above. 6 4 8 .8 6 6 8 .4 124.4 369.2 405.6 426.8 4 4 9 .7 491.9 475.8 487.1 4 9 4 .8 510.0 524.9 5 .0 17.9 19.0 19.6 19.4 20.6 20.8 20.5 20.4 20.6 21.8 17.4 77.8 85.1 95.5 104.4 114.0 110.0 112.4 115.4 118.1 121.6 27.2 - 5 .9 -1 3 .3 42.5 43.4 MAY 1973 □ NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions o f dollars) 1929 Item 1933 1941 1950 1968 1969 1970 1971 1972 1972 1973 III 103.1 Gross national product. L ess: Capital consumption allowances........ Indirect business tax and nontax lia bility ..................................................... Business transfer paym ents................. Statistical discrepancy........................... Plus: Subsidies less current surplus o f gov ernm ent enterprises........................... Equals: National income. 55.6 124.5 284.8 864.2 930.3 976.4 1,050.4 1,151.8 1,109.1 1,139.4 1,164.0 1,194.9 1,235.5 7 .9 7 .0 8 .2 7 .0 .6 .7 7.1 .7 .6 11.3 .5 .4 -.1 86.8 .1 18.3 74.5 93.8 103.7 99.7 105.3 104.1 105.6 107.2 23.3 78.6 85.9 93.4 101.9 110.1 .8 3.4 3.8 4 .2 4 .6 4.9 1.5 - 2 . 7 - 6 . 1 - 4 . 7 - 4 . 8 - 0 . 8 106.7 4.8 - 4 .1 108.7 4 .9 -.1 111.4 5 .0 2.3 113.7 116.3 5.0 5.1 -1 .5 .2 81.6 86.3 1.7 1.2 1.6 1.8 2 .2 40.3 104.2 241.1 711.1 766.0 798.6 855.7 935.6 903.1 922.1 943.0 974.2 88.2 74.0 81.8 71.9 86.1 73.1 89.6 74.6 95.6 76.3 88.9 .6 -.5 -1 .4 -.5 -.2 .0 .0 L e ss: C orporate profits and inventory valu ation adjustm ent................................. Contributions for social insurance---Excess o f wage accruals over disburse m ents.................................................... . IV 10.5 —1.2 .2 .3 15.2 2.8 37.7 6.9 .7 84.3 47.1 1.0 1.5 79.8 54.2 69.9 57.7 .9 78.6 65.3 .7 Plus: Government transfer paym ents.......... . .9 1.5 2 .6 14.3 56.1 61.9 75.2 89.0 99.1 94.4 95.7 97.7 Net interest paid by government and consum ers............................................. D ividends................................................... Business transfer paym ents................... 2 .5 5.8 .6 1.6 2 .0 .7 2 .2 4 .4 .5 7.2 8 .8 26.1 23.6 3.4 28.7 24.3 3.8 31.0 24.8 4 .2 31.1 25.4 4 .6 31.6 26.4 4.9 30.9 26.0 4.8 31. 26.2 4.9 31.7 26.5 5 .0 Equals: Personal income.................................. 85.9 47.0 96.0 227.6 688.9 750.9 806.3 861.4 935.9 907.0 922.1 939.9 L ess: Personal tax and nontax p aym ents... 2 .6 1.5 97.9 116.5 116.7 117.0 140.8 136.5 139.5 141.1 146.4 143.0 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 591.0 634.4 689.5 744.4 795.1 770.5 782.6 798.8 828.2 850.9 L ess: Personal outlays...................................... 79.1 77.2 1.5 46.5 45.8 .5 81.7 193.9 551.2 596.2 634.7 683.4 740.2 80.6 191.0 536.2 579.5 616.8 664.9 721.0 2 .4 14.3 15.8 16.9 17.6 18.2 .9 714.9 696.1 17.8 732.5 713.4 18.0 748.0 728.6 18.2 765.5 793.9 745.7 773.7 18.6 19.0 .3 .2 1.0 1.1 1.2 1.2 1.2 54.8 55.7 50.1 50.8 62.8 56.9 150.6 112.2 190.3 249.6 499.0 513.6 533.2 554.7 578.5 565.7 571.4 579.6 Personal consumption expenditures. Consumer interest paym ents............. Personal transfer payments to for eigners................................................ Equals: Personal saving...................................... Disposable personal income in constant (1958) dollars................................................................. 4 .2 -.9 3.3 .2 11.0 20.7 13.1 1.0 .9 .5 39.8 38.2 54.9 1.0 60.9 1.1 108.5 109.3 32.0 26.7 5.0 32.7 27.2 5.1 974.6 993.9 597.3 605.9 N ote.—D ept, o f Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N ote to table at to p o f opposite page. PERSONAL INCOME (In billions of dollars) Item 1973 1972 1971 1972 M ar. A pr. M ay June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. M ar. Total personal income............................ 861.4 935.9 913.6 919.4 924.0 922.9 932.9 940.0 946.8 964.6 976.2 982.9 986.0 994.5 1,001.2 Wage and salary disbursements........... Commodity-producing industries. . M anufacturing o n ly ........................ Distributive industries....................... Service industries................................ G overnm ent......................................... 572.9 627.0 612.4 617.6 619.9 624.0 625.7 630.6 636.0 643.0 648.5 654.9 662.7 668.4 674.1 243.2 206.1 224.6 220.1 221.7 222.5 223.5 222.4 225.2 227.8 231.0 233.3 235.8 237.7 240. 1 6 0 .3 175 138.2 151.5 105.0 116.1 123.5 134.8 1 7 1 .3 17 3 .3 173. 1 7 5 .0 17 4 .5 148.0 149.4 149.4 151.4 151.9 112.8 113.9 114.7 115.5 116.9 131.5 132.5 133.2 133.6 134.5 1 7 6 .6 178. 18 1 .5 1 8 3 .9 1 8 6 .2 1 8 7 .0 1 8 9 .5 152.3 153.0 155.0 156.3 158.0 159.5 117.3 118.2 119.3 119.9 121.5 123.0 135.8 137.0 137.7 139.0 139.7 142.5 160.2 124.1 143.5 1 9 1 .3 161.4 125.0 144.5 O ther labor incom e................................ 36.5 40.3 39.1 39.5 39.8 40.1 40.5 40.8 41.1 41.4 41.8 42.1 42.4 42.7 43 .0 Proprietors* incom e................................ Business and professional................. F a rm ...................................................... 69.9 52.6 17.3 75.2 55.6 19.6 74.2 54.7 19.5 74.0 54.9 19.1 74.0 55.3 18.7 71.6 53.2 18.4 74.3 55.7 18.6 75.4 56.3 19.1 76.2 56.7 19.5 77.7 57.0 20.7 79.5 57.4 22.1 79.8 57.8 22.0 80.4 58.2 22.2 81.2 58.7 22.5 81.9 59.1 22.8 26.3 R ental incom e......................................... 24.5 25.6 25.3 25.5 25.6 21.5 25. 26.3 26.5 27.0 26.7 26.9 26.6 26.6 D ividends................................................. 25.4 26.4 26.0 26.1 26.3 26.3 26.4 26.6 26.5 26.7 26.6 26.8 27.1 27.3 27.1 Personal interest incom e........................ 69.6 72.9 71.3 72.0 72.7 73.4 73.5 73.4 73.3 73.7 74.5 75.4 75.9 76.2 76.5 Transfer paym ents.................................. 93.6 104.0 100.1 99.7 100.9 101.3 102.2 102.8 103.2 111.6 115.2 113.6 113.3 114.8 115.2 31.2 35.5 34.8 35.0 35.1 35.3 42.4 42.7 43.0 L ess: Personal contributions for social insurance...................................... Nonagricultural income...................... Agricultural income............................ N ote.—D ept, o f Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also N ote to table at top o f opposite page. 35.5 35.8 36.0 36.4 36.5 36.6 837.2 909.3 887.1 893.4 898.3 897.5 907.3 914.0 920.3 937.1 947.2 953.9 956.6 964.6 971.1 24.2 26.6 26.5 26.0 25.8 25.4 25.5 25.9 26.5 27.6 29.0 29.0 29.4 29.8 30.1 A 70 FLOW OF FUNDS □ MAY 1973 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions o f dollars) 1969 Transaction category, or sector 1966 1967 1968 1969 1970 1970 1971 1972 1971 HI H2 HI H2 HI H2 HI H2 Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors............................................. 68.7 83.4 97.8 91.7 2 3 4 U.S. G overnm ent.................................. Public debt securities...................... Budget agency issues...................... 3.6 2 .3 1.3 13.0 8 .9 4.1 13.4 10.3 3.1 -3 .6 - 1 .3 -2 .4 5 6 7 8 9 10 11 12 13 14 15 A ll o t h e r n o n f i n a n c ia l s e c t o r s . . C orporate equity sh ares................. D ebt instrum ents............................. D ebt capital instrum ents........... State and local govt. secs.. . . C orporate and fgn. b o n d s. . . M ortgages................................. 65.0 .9 64.1 39.0 5 .7 11.0 22.3 70.4 2 .4 68.0 46.2 8.3 15.9 22.0 84.4 -.7 85.1 51.3 10.1 14.0 27.3 C om m ercial .......................... F arm ...................................... 1 1 .4 3 .1 5 .7 2 .1 1 1 .6 3 .6 4 .7 2 .1 16 17 18 19 20 O ther private credit..................... Bank loans n.e.c....................... Consum er c re d it...................... Open m arket p ap er................. O th er.......................................... 25.1 10.4 7 .2 1.0 6 .4 21 22 23 24 25 26 27 28 B y b o r ro w in g , s e c t o r ...................... 29 M emo: U.S. Govt, cash balance totals net o f changes in U.S.......... Total funds ra ised ................................ by U.S. G overnm ent....................... 30 31 Foreign............................................... State and local governm ents......... H ouseholds........................................ Nonfinancial business..................... C orporate ....................................... N onfarm noncorporate ................ F arm ............................................... 101.6 156.3 92.1 91.0 25.5 26.0 -.5 - 6 .4 -5 .9 -.5 -.6 3 .6 -4 .2 8.2 9.5 -1 .3 95.3 4 .8 90.6 4 9.0 7 .9 13.1 27.9 88.8 130.8 13.5 6 .8 81.9 117.4 60.8 87.5 13.8 20.2 21.1 20.3 25.8 47.0 98.5 1.9 96.6 51.8 8.5 14.0 29.3 91.5 7.6 83.9 46.2 7 .4 12.2 26.5 1 5 .2 3 .5 6 .6 2 .1 1 5 .7 4 .8 5 .5 1 .9 1 2 .8 5 .9 5 .4 1 .8 2 6 .1 8 .8 1 0 .1 2 .0 1 6 .8 4 .6 5 .7 2 .3 21.8 9 .9 4 .6 2.1 5 .2 33.8 13.8 11.1 1.6 7 .3 41.6 16.8 9 .3 3.3 12.2 21.1 5 .0 4.3 3.8 8 .0 2 9 .9 13.0 10.4 -.4 6.9 65.0 1.3 6 .4 23.2 34.1 70.4 4 .0 8.5 19.7 38.1 84.4 3.1 10.4 31.9 39.1 95.3 3.3 8.7 32.6 50.8 2 5 .2 5 .5 3 .5 2 9 .7 5 .0 3 .5 3 0 .7 5 .7 2 .7 - .4 69.1 4 .0 1 .2 82.2 11.8 - 1 .1 9 9 .0 14.5 12.8 12.9 -.1 93.8 109.7 142.9 168.9 150.3 185.4 17.4 16.3 1.1 22.3 23.8 -1 .6 28.6 28.1 .5 1 23.2 19.0 4 .2 2 3 4 85.6 6 .0 79.6 52.5 11.8 18.0 22.7 92.3 120.6 140.3 138.9 162.2 7.6 12.7 14.2 13.1 11.6 84.7 108.0 126.1 125.8 150.6 69.2 84.5 90.5 87.2 97.6 15.9 22.0 18.4 14.0 14.8 24.3 23.2 17.4 13.7 13.8 29.0 39.3 54.6 59.3 69.2 1 4 .6 5 .1 5 .3 1 .6 1 1 .2 5 .2 4 .8 1 .5 1 4 .4 6 .6 6 .0 2 .1 2 0 .4 8 .6 8 .6 1 .8 3 1 .8 9 .0 1 1 .6 2 .3 3 3 .4 9 .3 1 3 .9 2 .7 4 0 .6 1 0 .2 1 5 .7 2 .6 5 6 7 8 9 10 11 12 13 14 15 44.8 19.4 10.0 4 .6 10.8 37.8 14.2 7.9 2.1 13.6 21.1 9 .0 15.5 1.1 3 .4 3.8 7.3 23.4 7.9 6.5 -.4 9 .4 35.6 18.0 13.5 -.4 4 .5 38.6 15.9 15.6 1.6 5.5 53.0 27.3 22.4 -2 .2 5 .6 16 17 18 19 20 88.8 130.8 3.0 5.6 13.9 20.6 22.3 41.6 49.5 63.0 98.5 4.7 8.9 34.2 50.8 91.5 2 .0 8.5 30.3 50.7 85.6 2.3 11.4 22.0 49.9 92.3 120.6 140.3 138.9 162.2 5.5 2.9 4.1 5 .8 3.8 15.2 13.9 16.4 22.1 19.1 31.5 51.0 53.8 69.9 22.9 49.2 61.6 64.4 68.2 73.0 4 0 .2 7 .4 3 .2 3 9 .8 6 .4 3 .2 4 8 .6 1 0 .3 4 .1 3 9 .8 7 .6 3 .4 4 0 .6 7 .2 3 .0 4 1 .1 5 .6 3 .2 3 8 .5 7 .4 3 .3 4 7 .0 1 1 .0 3 .6 5 0 .1 9 .7 4 .6 5 6 .9 1 1 .2 4 .9 21 22 23 24 25 26 27 28 .4 91.3 - 4 .0 2 .1 3.3 153.1 22.2 -1 .5 93.6 -4 .9 2 .2 98.9 10.1 88.8 -2 .8 2.3 91.6 6 .0 3.1 106.6 14.3 -1 .0 143.9 23.3 7 .6 161.3 21.1 -5 .0 4 .0 155.4 181.4 19.2 16.5 29 30 31 191.2 188.7 208.7 227.1 225.5 252.9 224.2 229.9 224.3 226.7 247.0 258.8 282.9 305.5 118.5 128.4 140.4 154.4 164.9 178.5 151.0 157.7 162.5 167.3 174.5 182.6 192.4 198.1 76.1 90.5 107.4 72.7 60.3 68.3 72.7 60.6 74.3 73.2 72.2 61.8 59.4 72.5 1 2 3 72.1 93.1 115.4 122.0 142.8 81.1 71.9 - 8 . 9 - 1 0 .1 - 1 2 . 7 - 2 0 . 5 - 3 9 . 2 - 3 1 . 6 - 3 5 . 5 4 5 118.0 106.1 112.4 108.4 111.9 116.9 119.0 133.4 145.1 82.3 87.7 90.2 80.0 67.9 72.9 74.2 77.8 71.1 55.0 41.3 35.5 37.6 39.2 36.7 45.8 37.9 38.1 6 7 8 54.8 61.1 43.4 43.7 41.9 49.2 49.9 13.4 11.9 14.5 6.3 7.3 12.3 7 .4 - 9 .5 -1 4 .4 -1 1 .6 - 2 2 .4 - 2 7 .7 -2 2 .4 - 1 8 .0 9 10 11 97.5 108.9 63.2 65.4 34.2 43.4 12 13 14 38.8 4 5.0 31.2 34.7 35.6 11.9 13.4 12.3 14.5 7.3 1 8 .0 -1 3 .5 - 5 . 3 -1 7 .6 -2 3 .7 15 16 17 139.8 149.5 160.3 100.3 104.8 107.9 39.4 44.7 52.4 18 19 20 53.8 69.9 - 9 .1 - 1 7 .4 21 22 - 4 . 2 - 1 1 . 9 - 1 0 . 7 - 1 6 .1 1.5 4.3 8.7 3.5 3 .0 2.6 2.3 2 .4 5.7 5.3 5.6 4.9 23 24 25 26 5.5 3.7 8.8 11.4 9 .6 1.8 5 2 .2 1 1 .8 4 .2 Private net investment and borrowing in credit markets 1 2 3 Total, households and business T o t a l c a p i t a l o u t l a y s i ............... Capital consum ption2..................... Net physical investm ent................. 4 5 N et funds ra ised .............................. Excess net investm ent3................... 57.3 15.4 57.9 2 .4 71.0 83.3 71.8 104.6 84.9 - 2 . 7 - 1 0 . 6 - 1 1 . 2 - 3 0 . 3 - 1 1 .7 Total business 6 7 8 T o t a l c a p i t a l o u t l a y s ................. Capital consum ption....................... Net physical investm ent................. 97.0 54.2 42.8 94.0 58.5 35.6 9 10 11 N et debt funds raised..................... C orporate equity issues.................. Excess net investm ent3................... 33.0 1 .2 8.7 35.8 2 .3 -2 .5 99.0 109.3 110.1 63.2 69.5 73.6 39.7 35.8 36.6 4 0 .0 46.5 42.7 49.6 49.5 13.4 1.2 -.8 4 .3 6.8 - 3 . 3 -1 1 .1 - 1 2 . 9 - 2 5 .1 - 1 2 . 6 Corporate business 12 13 14 T o t a l c a p i t a l o u t l a y s ................. Capital consum ption....................... N et physical investment................. 77.1 38.2 38.9 72.0 41.5 30.5 76.2 45.1 31.1 84.0 49.9 34.2 15 16 17 N et debt funds raised..................... C orporate equity issues................. Excess net investment3................... 24.0 1.2 13.7 27.4 2 .3 .8 31.6 -.8 .3 35.9 4.3 -6 .0 85.2 57.3 27.9 81.5 48.7 32.9 33.0 35.1 13.4 6.8 - 7 .9 -2 0 .7 38.6 1.2 -6 .9 84.6 52.7 31.9 86.5 51.1 35.4 83.0 52.3 30.7 33.2 34.9 7 .4 6.3 -5 .1 -1 0 .4 86.3 53.1 33.1 85.0 55.6 29.4 Households 18 19 20 T o t a l c a p i t a l o u t l a y s ................. 94.2 64.3 29.9 94.6 109.7 117.8 115.3 134.9 118.1 117.5 115.9 114.8 130.1 69.9 77.2 84.8 91.3 98.5 83.1 86.6 89.6 9 3.0 96.7 33.0 24.0 21.7 33.4 24.7 32.5 36.4 35.1 30.9 26.3 21 22 N et funds raised............................... 23.2 6.7 19.7 5 .0 31.9 .6 32.6 .5 22.3 1.7 41.6 -5 .2 34.2 .9 30.3 .6 22.0 4 .3 22.9 - 1 .2 23 24 25 26 O f which: Houses less home m ortgages......... D urables less consumer c re d it. . . Nonprofit P&E less m ortgages. . . Less: U nallocated d e b t.................. - .8 7 .9 2 .0 2 .4 -1 .3 7 .8 1.9 3.5 -2 .1 5 .6 1.9 4 .8 - 2 .9 7 .0 2.2 5 .8 - 1 .9 5.5 2 .2 4.1 -8 .1 5.7 2.3 5.2 -2 .8 7 .7 2 .0 6 .0 -3 .1 6.9 2 .4 5 .6 -1 .0 6 .4 2.3 3.3 -2 .8 4 .4 2.1 4.9 1 Capital outlays are totals for residential and nonresidential fixed capital, net change in inventories, and consumer durables, except outlays by financial business. 2 Capital consumption includes amounts for consumer durables and excludes financial business capital consumption. 3 Excess o f net investment over net funds raised. N o t e . — Full sector statements are available on a quarterly basis for flows and annually in amounts outstanding. Requests for these statements should be addressed to the Flow o f Funds Section, Division o f Research and Statistics, Board o f Governors o f the Federal Reserve System, W ash FRASER ington, D.C., 20551. Digitized for 85.5 59.0 26.4 31.5 51.0 1.9 - 1 1 .5 Funds raised b y type and sector. Credit flows included here are the net amounts raised by households, nonfinancial business, governments, and foreigners. All funds raised by financial sectors are excluded. U.S. G overnment budget issues (line 4) are loan participation certificates issued by CCC, Export-Im port Bank, FN M A , and G N M A , together with security issues by FH A , Export-Im port Bank, and TV A. Issues by federally sponsored credit agencies are excluded as borrowing by financial institu tions. Such issues are in U.S. G overnment securities on p. A-71, line 11. C orporate share issues are net cash issues by nonfinancial and foreign corporations. M ortgages exclude loans in process. Open m arket paper is commercial paper issued by nonfinancial corporations plus bankers* acceptances. MAY 1973 □ FLOW OF FUNDS A 71 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions o f dollars) 1970 1969 Transaction category, or sector 1966 1967 1968 1969 1970 HI Total funds advanced in credit mar kets to nonfinancial sectors.. . . By public agencies and foreign Total net advances.............................. U.S. G overnment securities......... Residential m ortgages.................. FHLB advances to S&L’s ............ O ther loans and securities........... 1971 1972 1971 H2 HI H2 HI H2 HI H2 67.7 81.0 98.5 86.9 94.7 142.9 90.2 83.3 87.8 102.1 130.2 154.7 137.2 173.8 11.9 3 .4 2 .8 .9 4 .8 11.3 6 .8 2.1 -2 .5 4.9 12.2 3 .4 2 .8 .9 5.1 15.8 .9 4 .6 4 .0 6.3 28.0 15.7 5.7 1.3 5.2 41.2 33.4 5.7 -2 .7 4.8 9.9 -2 .7 3 .0 3.1 6.6 22.3 4.5 6.3 5 .0 6.6 25.3 10.5 6.3 2 5 .7 30.6 21.0 5 .2 -.1 4.6 37.7 32.4 4 .2 -5 .8 6.9 44.8 34.4 7 .5 2 .8 - 2 .7 2.9 15.8 3.8 4 .4 2 .8 4 .8 By agency— U.S. G overnm ent......................... Sponsored credit agencies.......... Federal Reserve........................... Foreign.......................................... Agency borrowing not in line 1 .. 4 .9 5.1 3.5 - 1 .6 4 .8 4 .6 -.1 4 .8 2 .0 -.6 4 .9 3.2 3.7 .3 3.5 2.9 9 .0 4 .2 -.3 8.8 2.8 9 .9 5 .0 10.3 8.7 3.2 2.8 8.8 26.4 3.9 2.7 6.2 3.7 - 2 .6 7.1 3.7 11.8 4.8 2 .0 11.0 3.1 11.1 2.8 8.3 10.8 2 .6 8.7 7 .2 12.2 6.6 4 .4 - 1 .8 8 .4 26.7 .3 1.9 7 .4 9 .3 26.1 7 .4 1.6 7.9 4 .7 5.4 7 .0 2 .2 6.1 -4 .2 11.6 4 .8 Private domestic funds advanced Total net advances........................... U.S. Government securities----Municipal securities.................... Corporate and foreign bo nds... Residential m ortgages................ Other mortgages and lo a n s.. . . Less: FHLB advances................ 60.6 5 .4 5 .7 10.3 11.6 28.5 .9 69.1 5.7 8.3 16.0 13.1 23.5 -2 .5 89.8 13.3 10.1 13.8 15.8 37.8 .9 79.9 4 .6 7 .9 12.6 15.8 43.0 4 .0 75.5 105.5 5.8 - 4 . 0 13.8 20.2 20.5 20.0 12.9 29.2 37.4 23.8 1.3 - 2 . 7 87.3 3.5 8.5 13.4 18.3 46.8 3.1 72.0 6.1 7 .4 11.8 13.3 38.5 5 .0 73.3 8.6 11.8 17.1 10.0 28.6 2 .8 78.0 3.1 15.9 23.8 15.7 19.4 -.1 92.8 117.3 124.7 162.9 - 9 .9 1.8 5.4 24.3 22.0 18.4 14.0 14.8 23.0 17.1 13.6 13.7 24.7 33.6 36.4 46.4 27.2 46.8 52.5 66.5 -5 .8 .5 - 2 . 7 2.8 19.5 13.1 6 .2 1 7 8 9 10 11 Private financial intermediation 19 C redit m arket funds advanced b y p ri vate financial institutions .......... 4 4 .7 62. 7 5 .0 5 4 .0 7 0 .2 1 0 5 .8 6 4 .3 4 3 .6 8 6 .1 Commercial banking.................... Savings institutions....................... Insurance and pension fu n d s........ Other finance................................... 17.0 7 .9 15.0 4 .7 18.9 14.2 12.2 8 .6 31.6 16.6 17.6 4.5 49.8 41.6 12.0 2.3 23.2 17.8 12.4 10.9 1 0 5 .9 35.9 15.0 12.4 -.5 39.0 15.6 13.9 6 .6 5 4 .3 20 21 22 23 14.6 10.6 12.1 6.2 21.6 11.7 17.7 3 .4 41.5 21.5 17.5 5.5 49.4 45.4 11.6 -.6 Sources o f funds ....................... 4 4 .7 6 2 .8 7 5 .0 5 4 .0 7 0 .2 6 4 .3 49.4 -.6 46.1 6.9 2.5 16.8 5 4 .3 8 6 .1 2 1.2 3 .0 4 3 .6 Domestic private deposits. C redit m arket b o rro w in g .. 60.4 1.8 92.3 4.5 5 .0 13.4 -.1 20.1 32.0 10.7 1 0 5 .9 88.8 -7 .0 105.8 -.2 O ther sources.................................. Foreign funds............................. . Treasury balances..................... . Insurance and pension reserves, O ther, n e t.................................... 20.5 3 .7 -.5 13.2 4 .2 14.0 2 .3 .2 11. -.3 22.0 2 .6 -.2 11.2 8.4 34.7 9 .3 * 10.3 15.1 8.0 -8 .4 2.9 13.5 9 .0 - 3 .3 2 .2 8.2 1. 45.9 14.4 -2 .1 9.7 23.9 23.5 4 .2 2.1 10.9 6.2 11.7 -3 .4 3 .4 13.0 -1 .3 4.3 -13.5 2 .4 14.1 1.2 .3 -7 .6 -1 .6 7 .6 2 .0 17.6 1.0 6.1 8.8 1.6 16.1 4 .4 -3 .9 7 .7 8 .0 29.4 4.1 4.8 13.6 7 .0 27 28 29 30 31 32 D irect lending in credit m k ts .. . . 33 U.S. G overnment securities. . . 34 M unicipal securities.................. 35 Corporate and foreign bonds.. 36 Commercial p aper..................... 37 O th er............................................ 18.9 8.8 2 .7 2.5 2 .0 3 .0 5.8 -1 .3 -2 .0 5.3 1.5 2 .4 21.7 7.7 .3 5.1 4 .4 4 .2 42.7 16.0 6 .7 7.6 8.7 3.7 4 .2 7 .0 - 7 . 6 - 1 3 .1 1.4 5.7 10.4 8.6 - 1 . 2 -2 .1 5 .0 4.1 36.4 14.6 6.2 6 .0 6.1 3.5 48.7 17.4 7 .2 9.1 11.2 3.8 29.5 15.0 -1 3 .3 1.8 - 1 7 . 0 -2 4 .7 5.3 3.8 - 1 . 1 12.1 8.6 10.3 10.9 - 1 3 . 3 - 7 . 8 4.3 4 .3 3.5 21.2 -1 .6 6.1 6.8 3.7 6.2 8.6 - 3 .8 4.8 4.1 .5 3.0 27.8 15.2 5.4 3.4 -.5 4 .3 32 33 34 35 36 37 38 Deposits and currency............. 39 Time and savings accounts. 23.1 20.3 51.5 39.3 48.6 34.0 5.3 -2 .2 63.9 56.2 95.7 81.3 6.5 5.2 4.1 -9 .7 35.0 31.1 104.6 109.7 91.4 81.4 38 39 M oney....................... D em and deposits. C urrency............... 2 .8 .8 2 .0 12.2 10.1 2.1 14.6 12.2 2 .4 7.6 4.7 2 .8 7.7 4.2 3.5 14.4 11.0 3.4 1.3 -.2 1.5 13.8 9 .6 4 .2 57.3 70.3 48.0 70.9 99.9 43.0 24 25 26 27 28 29 30 31 Private domestic nonfinancial investors 40 41 42 105 105.3 123.2 155.3 50.0 53.4 77.0 37.8 48.4 49.4 14.3 12.4 19.5 5 .2 7.1 9 .5 19 20 21 22 23 105.3 123.2 155.3 78.6 99.9 105.7 9 .2 7.1 20.3 24 25 26 92.8 110.3 81.4 92.4 80.9 70.1 3.9 .9 3 .0 11.4 7 .4 4 .0 17.9 13.4 4.5 10.7 8.4 2.3 28.3 24.3 4 .0 40 41 42 52.8 64.5 77.8 96.9 102.0 113.2 137.5 43 13.2 8.6 4 .7 43 Total of credit market instr., de posits, and currency................. 42.1 44 45 M em oranda: Public support rate (in per cent) Pvt. fin. interm ediation (in per cen t)........................................... T otal foreign funds......................... 17.6 13.9 12.3 18.2 29.5 28.9 11.0 26.8 28.8 30.0 28.9 29.0 14.2 9.1 44 73.7 2.1 90.8 4.3 83.5 2 .9 67.6 9 .0 93.1 100.2 1.8 23.1 73.6 11.8 60.4 6.2 74.2 4 .9 110.3 -1 .3 114.0 19.1 89.8 27.1 98.8 9.8 95.4 15.7 45 46 46 C orporate equities not included above 1 Total net issues..................................... 2 3 O ther equities................................... 4 .6 3.7 .9 4 .9 2 .6 2 .3 4 .0 4 .7 -.7 10.3 5.5 4 .7 9.5 2.6 6.9 14.8 1.3 13.5 8.2 6.3 1.9 12.4 4 .8 7.6 9.3 3.1 6.1 9.7 2 .0 7 .6 13.1 .3 12.7 16.5 2.3 14.2 12.9 -.3 13.3 11.8 * 11.8 1 2 3 4 Acq. by financial institu tio n ............. 5 O ther net purchases............................ 6 .0 -1 .3 8 .4 -3 .5 9.5 -5 .5 12.8 - 2 .5 11.4 -1 .9 19.1 - 4 .4 12.1 -3 .9 13.5 -1 .1 12.5 -3 .3 10.2 -.5 20.7 -7 .7 17.5 -1 .1 15.3 -2 .3 12.5 -.8 4 5 Notes Line 1. Total funds raised (line 1 o f p. A-70) excluding corporate equities. 2. Sum o f lines 3-6 or 7-10. 6. Includes farm and commercial mortgages. 11. Credit m arket funds raised by Federally sponsored credit agencies. Included below in lines 13 and 33. Includes all GNMA-guaranteed security issues backed by mortgage pools. 12. Line 1 less line 2 plus line 11. A lso line 19 less line 26 plus line 32. Also sum o f lines 27 through 41 excluding subtotals. 17. Includes farm and commercial mortgages. 25. Lines 39 + 41. 26. Excludes equity issues and investment company shares. Includes line 18. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, and liabilities o f foreign banking agencies to foreign af filiates. 29. D emand deposits at commercial banks. 30. Excludes net investment o f 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 am ounts acquired by private finance. Line 37 includes mortgages. 39+41. See line 25. 42. Mainly an offset to line 9. 43. Lines 32 plus 38 or line 12 less line 27 plus line 42. 44. Line 2/line 1. 45. Line 19/line 12. 46. Lines 10 plus 28. Corporate equities Line 1 and 3 Includes issues by financial institutions. A 72 U.S. BALANCE OF PAYM ENTS □ MAY 1973 1. U.S. BALANCE OF PAYMENTS (In millions o f dollars) Line 1970 C redits+ , debits — 1971 1972* 1971 IV 1972 I II III IV* Summary—Seasonally adjusted 1 2 3 2,164 - 2 ,6 6 6 - 6 ,8 1 6 - 1 ,5 3 4 -1 ,8 3 1 - 1 ,7 7 7 -1 ,5 2 5 -1 ,6 8 3 M erchandise trade balance 1......................................................... 41,963 42,787 48,840 9,583 11,659 11,561 12,380 E xports...................................................................................... 13,240 Im p o rts...................................................................................... -3 9 ,7 9 9 -4 5 ,4 5 3 -5 5 ,6 5 6 -1 1 ,1 1 7 -1 3 ,4 9 0 -1 3 ,3 3 8 -1 3 ,9 0 5 -1 4 ,9 2 3 4 5 M ilitary transactions, n e t............................................................... Travel and transportation, n e t..................................................... - 3 ,3 7 4 -2 ,0 6 1 - 2 ,8 9 4 - 2 ,4 3 2 -3 ,5 4 1 - 2 ,5 8 3 -8 0 7 -7 0 3 -8 8 4 -6 6 7 -9 5 8 -6 4 5 -8 5 0 -6 1 3 -8 5 0 -6 6 0 6 7 8 9 Investment income, net 2............................................................... U.S. direct investments abroad............................................ O ther U.S. investments abroad............................................ Foreign investments in the United States......................... 6,259 7,920 3,506 -5 ,1 6 7 7,995 9,455 3,443 - 4 ,9 0 3 7,901 10,293 3,499 -5 ,8 9 1 2,295 2,770 881 -1 ,3 5 6 1,879 2,324 942 - 1 ,3 8 7 1,788 2,383 822 - 1 ,4 1 7 1,921 2,570 854 -1 ,5 0 3 2,313 3,016 882 -1 ,5 8 5 10 574 748 819 172 200 192 203 224 11 3,563 750 -4 ,2 1 9 -5 7 7 -1 ,3 0 3 - 1 ,4 0 0 -8 6 4 -6 5 6 12 Remittances, pensions, and other transfers.............................. -1 ,4 7 4 -1 ,5 2 9 -1 ,5 5 7 -4 0 4 -3 8 9 -3 8 3 -3 6 8 -4 1 6 13 Balance on goods, services, and remittances...................................... 2,089 -7 7 9 - 5 ,7 7 6 -9 8 1 - 1 ,6 9 2 -1 ,7 8 3 - 1 ,2 3 2 -1 ,0 7 2 14 U.S. G overnment grants (excluding m ilitary)........................... - 1 ,7 3 4 -2 ,0 4 5 -2 ,2 0 8 -5 8 8 -6 0 1 -5 3 5 -5 3 8 -5 3 4 356 - 2 ,8 2 4 - 7 ,9 8 3 -1 ,5 6 9 -2 ,2 9 3 -2 ,3 1 8 -1 ,7 7 0 - 1 ,6 0 6 -1 ,8 2 9 244 -2 ,1 1 7 225 -1 ,7 0 8 127 -3 8 5 48 -3 3 0 88 -2 6 9 17 -5 0 9 7 -6 0 1 16 157 180 -2 5 4 750 -1 0 0 -1 ,1 1 6 350 237 -3 5 4 211 956 611 -2 6 9 -4 0 8 211 167 -2 2 690 -8 5 7 95 -8 4 1,868 -4 4 7 115 15 16 17 18 19 20 21 22 23 24 25 U.S. G overnm ent capital flows excluding nonscheduled repaym ents, net 4 ........................................................................ Nonscheduled repayments o f U.S. Government assets........... U.S. G overnm ent nonliquid liabilities to other than foreign official reserve agencies.............................................................. Long-term private capital flows, n e t........................................... U.S. direct investments abroad............................................ Foreign securities.................................................................... U.S. securities other than Treasury issues......................... O ther, reported by U.S. b an k s............................................ -4 3 3 214 -4 8 6 -1 ,3 9 8 - 4 ,0 7 9 107 -4 ,4 0 0 - 4 ,7 6 5 -3 ,3 3 9 1,030 -6 7 322 -9 4 2 -9 0 9 -6 1 9 2,190 2,282 4,502 198 - 8 1 4 -1 ,1 0 2 526 194 343 -1 9 6 -1 0 1 330 -1 ,0 8 1 -7 8 8 -1 ,2 6 6 181 -3 6 0 -3 9 3 73 1,067 921 22 -1 6 5 108 -1 5 1 26 Balance on current account and long-term capital 4.......................... - 3 ,0 5 9 -9 ,2 8 1 -9 ,2 4 3 - 1 ,7 7 2 -3 ,7 1 7 -1 ,6 6 3 -2 ,3 4 6 -1 ,5 2 3 27 28 29 30 N onliquid short-term private capital flows, n e t....................... Claims reported by U.S. b an k s............................................ Claims reported by U.S. nonbanking concerns............... Liabilities reported by U.S. nonbanking concerns.......... -4 8 2 -1 ,0 2 3 -3 6 1 902 - 2 ,3 8 6 -1 ,8 0 7 -5 5 5 -2 4 - 1 ,6 3 4 -1 ,5 3 0 -2 4 3 139 -6 5 4 -6 8 5 -1 3 0 161 —5Q8 -5 8 7 -1 7 96 592 467 103 22 -5 0 7 -3 7 0 -9 1 -4 6 -1 ,2 1 1 - 1 ,0 4 0 -2 3 8 67 31 32 A llocations o f Special Drawing Rights (SD R ’s ).................... Errors and omissions, n e t............................................................. 867 717 -1 ,1 7 4 -1 1 ,0 5 4 710 -3 ,8 0 6 179 - 2 ,0 8 2 178 942 178 - 1 ,3 1 4 177 -1 ,8 2 5 177 -1 ,6 0 8 33 Net liquidity balance................................................................................ -3 ,8 5 1 -2 2 ,0 0 2 -1 3 ,9 7 4 -4 ,3 2 9 - 3 ,1 0 5 - 2 ,2 0 7 -4 ,5 0 1 -4 ,1 6 5 3,677 -1 ,6 1 9 - 1 ,1 3 9 -3 4 0 -1 1 2 -7 3 3 -2 2 8 -4 0 6 4,816 - 1 ,2 7 9 3,905 - 1 ,3 1 3 102 55 -2 1 809 -1 1 9 -6 7 3 -5 3 3 -1 4 0 554 476 25 53 1,386 197 312 -1 1 5 1,189 980 -7 2 281 -1 7 3 -6 1 3 -4 6 9 -1 4 4 440 316 -3 1 155 2,583 -5 0 -4 3 -7 2,633 2,133 180 320 34 35 36 37 38 39 40 41 Liquid claim s............................................................................ Reported by U.S. b a n k s................................................ Reported by U.S. nonbanking c o n cern s................... Liquid liabilities..................................................................... To foreign commercial b a n k s ...................................... To international and regional organizations............. To other foreigners......................................................... - 5 ,9 8 8 -7 ,7 6 3 252 -1 ,0 7 2 -9 9 -5 6 6 351 -5 0 6 - 6 ,2 4 0 -6 ,6 9 1 -6 ,5 0 8 -6 ,9 0 8 181 682 87 -4 6 5 - 5 ,9 4 8 - 3 ,2 2 4 -8 2 1 - 4 ,6 7 4 -1 ,5 8 2 7,637 27,615 9,676 5,774 2,294 1,027 4,617 1,742 -8 1 0 -5 3 9 400 -5 221 27 34 118 535 341 189 366 280 -2 78 -1 6 7 2,477 787 -8 5 1 2,152 389 2,348 866 -2 4 9 381 1,350 32 547 -7 0 3 35 153 -1 8 7 1 -1 8 2 2 -8 429 544 -178 64 -1 -2 3 1 -1 7 1 -2 4 5 185 -5 5 3 -1 7 7 134 -1 5 -1 7 7 82 -1 6 2,586 3,153 4,284 939 1,205 797 1,323 959 2,885 3,116 ( 5) ( 5) ( 5) ( 5) ( 5) ( 5) 434 498 ( 5) ( 5) ( 5) ( 5) ( 5) ( 5) - 9 ,8 3 9 -2 9 ,7 6 5 -1 0 ,2 9 7 42 Financed by changes in: 43 44 45 46 47 48 49 50 51 52 53 Liquid liabilities to foreign official agencies.............................. Other readily marketable liabilities to foreign official agen cies................................................................................................... N onliquid liabilities to foreign official reserve agencies re ported by U.S. G ovt................................................................... G o ld ........................................................................................... SD R’s ........................................................................................ Convertible currencies........................................................... M emoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14)....................................................................... Reinvested earnings o f foreign incorporated affiliates o f U.S. firms (excluded from lines 7 and 20)............................. Reinvested earnings o f U.S. incorporated affiliates o f foreign firms (excluded from lines 9 and 21)......................... For notes see end o f table. -1 1 1 MAY 1973 □ U.S. BALANCE OF PAYM ENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS-Continued (In millions o f dollars) 1970 Credits + , debits — 1971 1972* 1972 1971 IV I II III IV* - 4 ,5 0 8 - 6 ,1 2 7 -3 ,2 8 3 - 3 ,4 0 2 -2 ,3 8 5 -9 9 9 - 4 ,6 7 8 -4 ,8 5 1 - 4 ,3 4 2 - 1 ,7 5 9 Balances excluding allocations o f SD R ’s—Seasonally adjusted Net liquidity b alance............................................................................ - 4 ,7 1 8 Official reserve transactions balance................................................. -1 0 ,7 0 6 -2 2 ,7 1 9 - 3 0 ,4 8 2 - 1 4 ,6 8 4 -1 1 ,0 0 7 Balances not seasonally adjusted 3,563 2,089 356 -3 ,0 5 9 750 -7 7 9 - 2 ,8 2 4 -9 ,2 8 1 - 4 ,2 1 9 -5 ,7 7 6 - 7 ,9 8 3 -9 ,2 4 3 300 -1 0 0 -6 5 3 97 -8 0 3 -1 ,1 7 1 -1 ,8 0 1 -3 ,6 1 5 - 1 ,4 5 7 -1 ,8 5 3 -2 ,4 3 5 - 2 ,2 6 5 - 2 ,2 9 2 -2 ,6 7 1 -3 ,1 6 9 -3 ,7 8 1 333 -8 0 -5 7 9 414 -3 ,8 5 1 -9 ,8 3 9 -2 2 ,0 0 2 -2 9 ,7 6 5 -1 3 ,9 7 4 -1 0 ,2 9 7 -3 ,4 6 6 - 5 ,8 8 2 - 2 ,3 6 9 -2 ,5 0 6 -3 ,0 4 3 -7 4 1 - 5 ,3 1 3 - 5 ,5 8 5 - 3 ,2 4 9 -1 ,4 6 5 Balances excluding allocations o f SD R ’s : Net liquidity................................................................................... -4 ,7 1 8 Official reserve transactions....................................................... -1 0 ,7 0 6 -2 2 ,7 1 9 -3 0 ,4 8 2 -1 4 ,6 8 4 -1 1 ,0 0 7 -3 ,4 6 6 - 5 ,8 8 2 - 3 ,0 7 9 -3 ,2 1 6 - 3 ,0 4 3 -7 4 1 -5 ,3 1 3 -5 ,5 8 5 -3 ,2 4 9 -1 ,4 6 5 Balance on goods and services........................................................... Balance on goods, services, and rem ittances.................................. Balance on current acco u n t................................................................ Balance on current account and long-term capital 4 .................... Balances including allocations o f SD R ’s : N et liquidity................................................................................... 1 Adjusted to balance o f payments basis; excludes transfers under military grants, exports under U.S. m ilitary agency sales contracts and im ports o f U.S. m ilitary agencies. 2 Includes fees and royalties from U.S. direct investments abroad or from foreign direct investments in the United States. 3 Equal to net exports o f goods and services in national income and product accounts o f the U nited States. 4 Includes some short-term U.S. G ovt, assets. 5 N ot available. N ote.—D ata are from U.S. D epartm ent o f Commerce, Bureau o f Eco nomic Analysis. Details may not add to totals because o f rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions o f dollars) Im ports 2 Exports * 1972 1973 599 564 628 774 908 037 832 913 179 469 456 169 4,435 4,473 4,515 4,413 4,482 4,468 4,565 4,726 4,606 4,736 5,136 5,002 5,281 5,541 5,432 9,720 9,864 10,023 10,327 10,792 11,719 11,924 11,094 39,952 45,563 1970 1971 1972 1973 1970 M onth : J a n .... F e b .. . M ar... A p r... M a y .. J u n e .. J u ly ... Aug... Sept... O c t.. . N ov... D e c ... 3,406 3,546 3,375 3,410 3,661 3,727 3,704 3,591 3,553 3,688 3,499 3,569 3,601 3,695 3,790 3,631 3,746 3,672 3,573 3,667 4,487 2,669 3,196 3,881 4,074 3,824 3,869 3,817 3,885 3,971 4,052 4,200 4,177 4,318 4,473 4,561 4,977 5,065 5,380 3,222 3,279 3,219 3,262 3,367 3,265 3,254 3,346 3,423 3,498 3,428 3,401 Q uarter: I I I I I I .... I V .. . . 10,327 10,798 10,848 10,756 11,086 11,049 11,727 9,746 11,767 11,673 12,429 13,352 Y ear3. . . 42,659 43,549 49,208 1 Exports o f domestic and foreign merchandise; excludes Dept, of Defense shipments o f grant-aid military equipment and supplies under M utual Security Program. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Trade balance 1971 1970 1971 1972 184 267 156 148 324 462 450 245 130 190 71 168 2 130 160 -1 4 3 -1 6 1 -3 6 5 -2 5 9 -2 4 7 308 -8 0 0 -2 6 0 -2 8 8 -3 6 1 -6 4 9 -6 4 6 -5 9 6 -5 9 7 -4 9 7 -5 1 3 -5 2 7 -4 2 8 -4 1 8 -6 6 4 -4 4 1 13,423 13,363 13,897 14,874 607 933 816 425 294 -6 7 0 -1 9 7 -1 ,3 4 8 - 1 ,6 5 6 - 1 ,6 9 0 -1 ,4 6 8 - 1 ,5 2 2 55,555 2,707 - 2 ,0 1 4 - 6 ,3 4 7 1973 -3 0 4 -4 7 6 -5 3 3 Sum o f unadjusted figures. N ote.—Bureau of the Census data. Details may not add to totals be cause o f rounding. A 74 U.S. GOLD TRANSACTIONS □ MAY 1973 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales [—] or net acquisitions; in millions o f dollars at $35 per fine troy ounce until M ay 8, 1972, and at $38 per fine troy ounce thereafter) 1972 Area and country 1965 1964 1963 1966 1967 1968 1969 1970 1971 1972 I W estern Europe: -8 2 -5 5 -4 0 - 5 1 8 -4 0 5 -2 2 5 -1 200 -6 0 -3 2 -1 3 0 -8 1 329 618 1 T o ta l.............................. -3 9 9 -1 0 0 -8 3 -8 8 4 Latin A merican republics: Argentina ............................ Brazil...................................... C olom bia.............................. Venezuela.............................. O th e r.................................... T o ta l.............................. A sia: I r a q ........................................ J a p a n .................................... L e b an o n ................................ M alaysia.............. ................ Philippines............................ Saudi A rab ia ........................ Singapore.............................. ...................................... -3 0 72 -1 1 32 - 1O3th er T o tal.............................. 12 All o th er.................................... -3 6 Total foreign countries.......... -3 9 2 -2 5 -3 5 -4 9 16 -4 7 200 H -2 9 -1 3 - 8 8 -1 ,2 9 9 -6 5 9 -9 8 0 -6 6 9 969 -2 0 4 -7 9 6 200 150 50 -3 9 -3 7 -1 -1 -2 5 • -2 5 * -2 8 -2 3 -1 -6 ii -4 0 -2 9 -8 0 -5 9 -6 5 -5 4 -1 3 1 -5 54 10 -9 56 25 29 -2 5 -1 3 17 -4 1 -1 0 -4 -5 6 -1 1 20 -6 3 -7 * -1 4 -2 1 -4 2 -1 -9 5 -3 4 9 -5 0 -8 1 -7 5 -1 -1 4 -2 2 -2 4 -8 6 -4 4 -3 6 6 -1 6 -2 2 3 -1 6 6 3 -6 8 - 3 6 - 1 ,3 2 2 - 3 6 -1 ,5 4 7 2 -5 0 51 -5 0 -il9 -2 5 -1 7 5 40 -4 -3 5 -1 0 -2 11 -9 2 -9 1 -3 0 39 -3 -3 -2 1 3 -3 8 -3 -3 -8 1 -6 42 -1 -6 0 8 -1 ,0 3 1 -1 ,1 1 8 957 4 —631 -8 4 5 -3 -3 10 —156 -2 2 -5 4 4 -5 4 4 -4 3 1 -1 ,0 0 9 -1 ,1 2 1 967 —787 -8 6 7 -5 4 7 -5 4 4 177 IV -1 1 0 -4 7 3 -5 0 -8 3 5 6 -2 2 5 -3 9 2 -5 2 -2 0 9 -1 9 -1 2 9 -3 0 -8 7 9 Intl. M onetary F u n d ^............ G rand to ta l.................. -2 -8 5 325 500 41 -7 6 -2 80 -1 1 25 -5 8 600 -2 -6 0 Canada .................................... III 4 -2 5 -6 0 1 -2 -8 0 -3 5 -1 8 0 -5 0 150 -6 II 22 1 Includes purchase from D enm ark o f $25 million. 2 Includes purchase from Kuwait o f $25 million. 3 Includes sales to Algeria o f $150 million in 1967 and $50 million in 1968. 4 D ata for IM F include the U.S. paym ent o f $385 million increase in its gold subscription to the IM F and gold sold by the IM F to the United States in mitigation o f U.S. sales to other countries making gold payments to the IM F. The country d ata include U.S. gold sales to various countries in connection with the IM F quota payments. Such U.S. sales to countries and resales to the United States by the IM F total $548 million each. 5 Includes IM F gold sales to and purchases from the United States, -3 -3 U.S. payment o f increases in its gold subscription to IM F, gold deposits by the IM F (see note 1 (b) to Table 4), and withdrawal o f deposits. The first withdrawal ($17 million) was m ade in June 1968 and the last with drawal ($144 million) was m ade in Feb. 1972. IM F sold to the U nited States a total o f $800 million o f gold ($200 million in 1956, and $300 million in 1959 and in 1960) with the right of repurchase; proceeds from these sales invested by IM F in U.S. Treasury securities. IM F repurchased $400 million in Sept. 1970 and the remaining $400 million in Feb. 1972. 6 Payment to the IM F o f $259 million increase in U.S. gold subscription less gold deposits by the IM F. Notes to Table 5 on opposite page: 1 Represents net IM F sales o f gold to acquire U.S. dollars for use in IM F operations. Does not include transactions in gold relating to gold deposit or gold investment (see Table 6). 2 Positive figures represent purchases from the IM F o f currencies of other members for equivalent am ounts o f d ollars; negative figures repre sent repurchase o f dollars, including dollars derived from charges on purchases and from other net dollar income o f the IM F. The United States has a commitment to repurchase within 3 to 5 years, but only to the extent that the holdings o f dollars o f the IM F exceed 75 per cent o f the U.S. quota. Purchases o f dollars by other countries reduce the U.S. commitment to repurchase by an equivalent amount. 3 Includes dollars obtained by countries other than the United States from sales o f gold to the IM F. 4 Represents the U.S. gold tranche position in the IM F (the U.S. quota minus the holdings o f dollars o f the IM F), which is the am ount that the United States could purchase in foreign currencies automatically if needed. U nder appropriate conditions, the United States could pur chase additional amounts equal to its quota. 5 Includes $259 million gold subscription to the IM F in June 1965 for a U.S. quota increase, which became effective on Feb. 23, 1966. In figures published by the IM F from June 1965 through Jan. 1966, this gold sub scription was included in the U.S. gold stock and excluded from the reserve position. 6 Includes $30 million o f Special D raw ing Rights. 7 Represents am ount payable in dollars to the IM F to m aintain the value o f IM F holdings o f U.S. dollars. N ote .—The initial U.S. quota in the IM F was $2,750 million. The U.S. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 1966, to $6,700 million in Dec. 1970, and to $7,274 million in M ay 1972 as a result o f the change in par value o f the U.S. dollar. U nder the Articles o f Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. MAY 1973 □ U.S. RESERVE ASSETS; POSITION IN TH E IMF A 75 4. U.S. RESERVE ASSETS (In millions o f dollars) G old sto ck 1 T o tal2 Treasury Con vertible foreign curren cies 21,504 19,359 18,753 17,220 16,843 16,672 19,507 17,804 16,947 16,057 15,596 15,471 19,456 17,767 16,889 15,978 15,513 15,388 116 99 212 432 1,997 1,555 1,690 1,064 1,035 769 1 9 6 5 ... 15,450 1 9 6 6 ... 14,882 14,830 1 9 6 7 ... 1 9 6 8 ... 15,710 1 9 6 9 ... 7 16,964 613,806 13,235 12,065 10,892 11,859 613,733 13,159 11,982 10,367 10,367 781 1,321 2,345 3,528 72,781 6 863 326 420 1,290 2,324 11,072 10,206 10,487 10,732 10,132 10,410 629 8 276 241 1,935 585 465 End of year 1 9 5 9 ... 1 9 6 0 ... 1 9 6 1 ... 1 9 6 2 ... 1 9 6 3 ... 1 9 6 4 ... 1 9 7 0 ... 1 9 7 1 ... 19729.. Total 14,487 812,167 13,151 Gold sto c k 1 Reserve position in IM F 3 SD R ’s 4 851 1,100 1,958 1 Includes (a) gold sold to the United States by the IM F with the right o f repurchase, and (b) gold deposited by the IM F to mitigate the impact on the U.S. gold stock o f foreign purchases for the purpose o f making gold subscriptions to the IM F under quota increases. F o r corresponding liabilities, see Table 6. 2 Includes gold in Exchange Stabilization Fund. 3 The United States has the right to purchase foreign currencies equiva lent to its reserve position in the IM F autom atically if needed. Under ap propriate conditions the United States could purchase additional amounts equal to the U.S. quota. See Table 5. 4 Includes allocations by the IM F o f Special Drawing Rights as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 million on Jan. 1, 1972; plus net transactions in SD Rs. 5 F or holdings o f F.R . Banks only, see pp. A -l2 and A -l3. 6 Reserve position includes, and gold stock excludes, $259 million gold subscription to the IM F in June 1965 for a U.S. quota increase which End of month T o tal2 Treasury C on vertible foreign curren cies 5 Total Reserve position in IM F 3 SD R’s 4 1972 A p r ... . M ay . . . J u n e ... J u ly .. . Aug---S e p t.... O c t.. . . N ov.. . . D e c.. . . 12 285 9131345 13,339 13,090 13,124 13,217 13,313 13,307 13,151 9 662 910*490 10,490 10,490 10,488 10,487 10,487 10,487 10,487 9 588 910^410 10,410 10,410 10,410 10,410 10,410 10,410 10,410 429 469 457 203 234 323 414 403 241 391 9428 434 439 444 449 454 459 465 1 803 91 ^958 1,958 1,958 1,958 1,958 1,958 1,958 1,958 1973 J a n .. . . F e b .. . . M ar. .. A p r.. . . 13,054 12,926 12,931 12,904 10,487 10,487 10,487 10,487 10,410 10,410 10,410 10,410 140 8 8 8 469 473 478 460 1,958 1,958 1,958 1,949 became effective on Feb. 23, 1966. In figures published by the IM F from June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. 7 Includes gain o f $67 million resulting from revaluation o f the Germ an m ark in Oct. 1969, o f which $13 million represents gain on m ark holdings at time o f revaluation. 8 Includes $28 million increase in dollar value o f foreign currencies revalued to reflect market exchange rates as o f Dec. 31, 1971. 9 Total reserve assets include an increase o f $1,016 million resulting from change in par value o f the U.S. dollar on M ay 8, 1972; o f which, total gold stock is $828 million (Treasury gold stock $822 million), reserve position in IM F $33 million, and SD R ’s $155 million. N ote.—See Table 24 for gold held under earm ark at F.R . Banks for foreign and international accounts. G old under earm ark is not included in the gold stock of the U nited States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions o f dollars) Transactions affecting IM F holdings o f dollars (during period) U.S. transactions with IM F Transactions by other countries with IM F Period Payments of subscrip tions in dollars 1946— 1957. 1958— 1963. 1964— 1966. 1967. 1968. 1969. 1970. 1971 . 1972. 1972—A pr.. M ay. June. July.. A ug.. Sept.. O ct.. N ov.. D ec.. 1973—J a n ... Feb.. M ar.. A pr.. For notes sec opposite page. Net gold sales by IM F 1 2,063 1,031 776 600 150 1,155 22 6 712 ' 7*54i‘ Transac tions in foreign curren cies 2 1,640 -8 4 150 1,362 200 200 7541 IM F holdings o f dollars (end o f period) Per cent of U.S. quota U .S. reserve position in IM F (end o f period) 4 Total change A m ount 827 2,740 6 775 2,315 1,744 775 3,090 4.834 28 75 94 1,975 1,035 5326 268 741 40 -9 4 -8 7 0 -1 ,0 3 4 1,929 1,350 694 4,740 3,870 2,836 4,765 6,115 6,810 92 75 55 71 91 94 420 1,290 2,324 1,935 585 465 -5 -4 -6 -5 -5 -6 -5 -4 -6 195 537 -6 -5 -5 -6 -5 -4 -6 6,309 6,846 6,840 6.835 6,831 6,825 6,820 6,816 6,810 94 94 94 94 94 94 94 94 94 391 428 434 439 444 449 454 459 465 -4 -5 -5 18 -4 -5 -5 18 6,806 6,801 6,796 6,814 94 93 93 94 469 473 478 460 IM F net income Purchases of dollars 3 Re purchases in dollars -4 5 60 45 -2 ,6 7 0 -1 ,6 6 6 -7 2 3 20 20 19 25 -2 8 -4 7 -1 1 4 -8 0 6 -1,343 -8 5 4 -2 4 dollars A 76 INTL. CAPITAL TRANSACTION S OF TH E U.S. □ MAY 1973 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions o f dollars) Liabilities to foreign countries Official institutions2 End of period Total Liquid liabili ties to IM F arising from gold trans actions1 Liquid liabilities to other foreigners Liquid Total Short term liabili ties re ported by banks in U.S. Liquid N onm ar liabili ketable N onm ar noncon O ther ties M arket ketable vertible readily to com able con mercial m arket U.S. vertible Treas. able banks U.S. Treas. U.S. liabili a b ro ad 6 bonds bonds Treas. ties5 and and bonds notes4 notes 3 and notes Total Short term liabili ties re ported by banks in U.S. Liquid liabili ties to non mone tary M arket inti, able and re U.S. gional Treas. organi bonds zations 8 and notes3’7 19,428 500 10,120 9,154 966 4,678 2,940 2,399 541 1,190 1960 9............ /20, 994 \21 027 800 800 11,078 11,088 10,212 10,212 866 876 4.818 4.818 2,773 2,780 2.230 2.230 543 550 1,525 1,541 1961 [22 853 122, 936 800 800 11.830 11.830 10.940 10.940 890 890 5,404 5,484 2,871 2,873 2,355 2,357 516 516 1.948 1.949 1962 9............ 124, 268 124, 268 800 800 12,948 12,914 11,997 11,963 751 751 5.346 5.346 3.013 3.013 2.565 2.565 448 448 2,161 2,195 1963 9............. J26, 433 126, 394 800 800 14,459 14,425 12.467 12.467 1,217 1,183 703 703 63 63 9 9 5.817 5.817 3,397 3,387 3.046 3.046 351 341 1,960 1,965 1 2 9 ; 364 (29, 313 800 800 15,790 15.786 13,224 13,220 1.125 1.125 1.079 1.079 204 204 158 158 7,271 7,303 3,730 3,753 3,354 3,377 376 376 1.722 1.722 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9............. /31 ,145 131 ,020 1,011 1,011 14,841 14,896 12,484 12,539 860 860 256 256 328 328 913 913 10,116 9,936 4.271 4.272 3.743 3.744 528 528 906 905 1967 9............. J35,,819 \3 5 s,667 1.033 1.033 18,201 18,194 14,034 14,027 908 908 711 711 741 741 1.807 1.807 11,209 11,085 4,685 4,678 4,127 4,120 558 558 691 677 1968 9............. / 38, 687 138, 473 1.030 1.030 17,407 17,340 11.318 11.318 529 462 701 701 2.518 2.518 2.341 2.341 14.472 14.472 5,053 4,909 4.444 4.444 609 465 725 722 1969 9............. 10/45,,755 145 ;914 1.019 ioi5,975 15,998 1.019 11,054 11,077 346 346 10 555 555 02,515 2,515 1.505 1.505 23,638 23,645 4,464 4,589 3,939 4,064 525 525 659 663 1970—Dec. 9. 147, 009 146, 960 566 566 23.786 23,775 19.333 19.333 306 295 429 429 3.023 3.023 695 695 17,137 17,169 4,676 4,604 4,029 4,039 647 565 844 846 1971—D e c.11 J67, 681 \67, 810 544 544 51,209 50,651 39,679 39,018 1.955 1.955 6,060 6.093 3,371 3,441 144 144 10,262 10,950 4,138 4,141 3,691 3,694 447 447 1,528 1,524 1972—M ar.. . A pr— M ay. . J u n e .. J u ly ... A u g ... Sept.. . Oct__ N o v ... D ec.. . 71. 013 12. 215 12. 115 7 4 ; 001 11. 465 1 9 ; 454 19, ,731 8i: 422 8 2 ; 373 8 2 ;,902 53,806 54,093 53,579 54,604 59,416 60,601 60,070 60,926 61,122 61,503 40,980 38,723 37,850 38,603 39,777 40,611 39,628 40,261 40,040 39,976 2,644 2,668 3,018 3,292 3,516 3,881 4,117 4,457 4,834 5,236 6.094 8.594 8.594 8.594 12.094 12.094 12.095 12.097 12.098 12,108 3.723 3.723 3.723 3.723 3.647 3.647 3,804 3.651 3.651 3,639 365 385 394 392 382 368 426 460 499 544 11,464 12,433 12,822 13,444 12,128 12,911 13,585 14,180 14,781 14,821 4,194 4,242 4,285 4,475 4,493 4,419 4,630 4,823 4,745 4,951 3,818 3,853 3,890 4,103 4,123 4,041 4,241 4,417 4,322 4,526 376 389 395 372 370 378 389 406 423 425 1,549 1,447 1,429 1,478 1,428 1,523 1,446 1,493 1,725 1,627 1973—J a n .... Feb.*. M ar.* . 82 ,086 87; ,873 60,779 68,455 129 0 , 855 1271,289 38,517 45,395 46,882 5,798 6,377 6,917 12,110 12,110 1212,128 3,780 3,627 3,617 574 946 1 ,745 14,823 12,791 12,967 4,891 5,006 4,966 4,466 4,634 4,590 425 372 376 1,593 1,621 1,633 195 9 1964 9............. 196 5 200 200 1 Includes (a) liability on gold deposited by the IM F to mitigate the impact on the U.S. gold stock o f foreign purchases for gold subscriptions to the IM F under quota increases, and (b) U.S. Treasury obligations at cost value and funds awaiting investment obtained from proceeds o f sales o f gold by the IM F to the United States to acquire income-earning assets. 2 Includes BIS and European Fund. 3 Derived by applying reported transactions to benchm ark data; breakdown o f transactions by type o f holder estimated 1959-63. 4 Excludes notes issued to foreign official nonreserve agencies. 5 Includes long-term liabilities reported by banks in the United States and debt securities o f U.S. Federally-sponsored agencies and U.S. cor porations. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to commer cial banks abroad and to “ other foreigners.” 7 Includes marketable U.S. Treasury bonds and notes held by commer cial banks abroad. 8 Principally the International Bank for Reconstruction and Develop ment and the Inter-American and Asian Development Banks. From D ec. 1957 through Jan. 1972 includes difference between cost value and face value o f securities in IM F gold investment account. 9 D ata on the two lines shown for this date differ because o f changes in reporting coverage. Figures on first line are comparable with those shown for the preceding d a te ; figures on second line are comparable with those shown for the following date. 10 Includes $101 million increase in dollar value o f foreign currency liabilities resulting from revaluation o f the German m ark in Oct. 1969 as follows: liquid, $17 million, and nonliquid, $84 million. 11 D ata on the second line differ from those on first line because cer tain accounts previously classified as “ official institutions” are included with “ banks” ; a number o f reporting banks are included in the series for the first time; and U.S. Treasury securities payable in foreign currencies issued to official institutions o f foreign countries have been increased in value to reflect m arket exchange rates as of Dec. 31, 1971. 12 Includes $15 million increase in dollar value o f foreign currency liabilities revalued to reflect market exchange rates. N ote.—Based on Treasury D ept, data and on data reported to the Treasury Dept, by banks and brokers in the United States. D ata correspond generally to statistics following in this section, except for the exclusion o f nonmarketable, nonconvertible U.S. Treasury notes issued to foreign official nonreserve agencies, the inclusion of investments by foreign official reserve agencies in debt securities o f U.S. Federally-sponsored agencies and U.S. corporations, and m inor rounding differences. Table excludes IM F “holdings o f dollars,” and holdings o f U.S. Treasury letters o f credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. MAY 1973 □ INTL. CAPITAL TRANSACTION S OF TH E U.S. A 77 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions o f dollars) Total foreign countries End o f period Western Europe * Latin American republics Canada Asia Africa O ther countries 2 18,194 /17,407 \17,340 '4 15,975 15,998 /23,786 \23,775 /51,209 \50,651 10,321 8,070 8,062 4 7,074 7,074 13,620 13,615 30,010 30,134 1,310 1,867 1,866 1.624 1.624 2.951 2.951 3.980 3.980 1,582 1.865 1.865 1,888 1,911 1,681 1,681 1.414 1,429 4,428 5,043 4,997 4.552 4.552 4,713 4,708 14,519 13,823 250 259 248 546 546 407 407 415 415 303 303 302 291 291 414 413 871 870 1972—M ar.., A p r ... M a y .. J u n e .. Ju ly . . A ug... Sept... Oct.. . N o v ... Dec.. . 53,806 54,093 53,579 54,604 59,416 60,601 60,070 60,926 61,122 61,503 31,588 31,358 30,935 31,910 36,370 36,612 35,985 35,078 34,608 34,197 4,052 4,181 4,316 4,486 4,446 4,463 4,469 4,468 4.289 4,279 1,323 1,492 1,476 1,473 1,393 1.415 1,363 1,468 1,439 1,721 15,191 15,249 14,967 14,572 14,727 15,352 15,291 16,805 17,372 17,566 457 477 458 533 572 652 685 616 694 777 1,195 1,336 1,427 1,630 1,908 2,107 2,277 2,491 2,720 2,963 1973—Jan.. . Feb.2>. Mar.?7 60,779 68,455 6 71,289 34,146 40,765 6 45,193 4,201 4.290 4,221 1,718 1,893 1,750 17,027 17,898 16,557 673 809 823 3,014 2,800 2,745 196 7 1968 3 ........... 1969 3........... 1970 3........... 1971 5........... 1 Includes Bank for International Settlements and European Fund. 2 Includes countries in Oceania and Eastern Europe, and Western Euro pean dependencies in Latin America. 3 See note 9 to Table 6. 4 Includes $101 million increase in dollar value o f foreign currency liabilities resulting from revaluation o f the G erm an m ark in Oct. 1969. 5 D ata on second line differ from those on the first line because certain accounts previously classified as “ Official institutions” are included in “ Banks” ; a number o f reporting banks are included in the series for the first time; and U.S. Treasury liabilities payable in foreign currencies t o official institutions o f foreign countries have been increased in value by $ 110 million to reflect m arket exchange rates as o f Dec. 31, 1971. 6 Includes $15 million increase in dollar value o f foreign currency liabilities revalued to reflect m arket exchange rates. N ote.—D ata represent short- and long-term liabilities to the official institutions o f foreign countries, as reported by banks in the United States; foreign official holdings o f marketable and nonm arketable U.S. Treasury securities with an original m aturity o f more than 1 year, except for non m arketable notes issued to foreign official nonreserve agencies; and in vestments by foreign official reserve agencies in debt securities o f U.S. Federally-sponsored agencies and U.S. corporations. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions o f dollars) To nonm onetary international and regional organizations 6 To all foreigners Payable in dollars End o f period Total Demand 1969............... 19707............. U.S. Treasury bills and Time 2 certifi cates 3 Deposits Total 1 Other short term liab.4 Payable in foreign cur rencies 40,199 /4 1 ,719 141,761 /55,404 155,430 39,770 41,351 41,393 55,018 55,038 20,460 15,785 15,795 10,399 6,460 6,959 5,924 5,961 5,209 4,217 5,015 14,123 14,123 33,025 33,025 7,336 5,519 5,514 6,385 11,336 429 368 368 386 392 1972—M a r .., A p r... M ay. . J u n e .. J u ly .., A u g .. Sept... O c t... N o v .., D e c... 57,654 56,287 55,830 57,467 57,294 58,884 58,687 60,138 60,654 60,737 57,138 55,793 55,330 56,947 56,813 58,429 58,208 59,600 60,112 60,240 5,991 6,460 6,570 7,217 7,320 6,631 6,931 7,075 7,012 8,290 4,431 4,502 4,653 4,830 4,746 4,867 4,939 5,146 5,379 5,630 34,929 32,324 31,498 31,871 32,881 33,745 32,714 33,071 32,774 31,850 11,787 12,507 12,609 13,029 11,866 13,186 13,625 14,309 14,946 14,470 516 494 499 519 481 455 478 538 543 496 1973—J a n ... Feb.*. M ar.* 59,186 64,239 65,860 58,661 63,726 65,312 7,453 7,794 7,639 5,547 5,585 5,613 30,133 36,551 37,971 15,528 13,796 14,089 526 513 548 1971 8............ For notes see the following page. IM F gold invest m ent5 Deposits Total Demand 800 400 400 400 400 0 0 0 U.S. Treasury bills and Tim e2 certifi cates Other short term liab.4 613 820 820 1,372 1,368 62 69 69 73 73 83 159 159 192 192 244 211 211 210 210 223 381 381 896 892 1,391 1,278 1,268 1,316 1,266 1,322 1,233 1,281 1,512 1,413 88 87 84 85 101 65 79 63 95 86 189 198 186 238 262 267 224 210 242 202 275 177 198 212 142 172 145 204 380 326 839 817 800 782 761 818 785 804 794 800 1,380 1,419 1,421 118 133 114 172 145 135 279 303 279 810 838 893 A 78 INTL. CAPITAL TRANSACTIONS OF TH E U.S. □ MAY 1973 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions o f dollars) To residents o f foreign countries To official institutions9 Payable in dollars Payable in dollars End o f period Payable in foreign cur rencies D em and Tim e2 U.S. Treasury bills and certifi cates 3 38,786 J40,499 140,541 (53,632 \5 3 ,662 20,397 15,716 15,726 10,326 6,387 6,876 5,765 5,802 5,017 4,025 3,971 13.511 13.511 32.415 32.415 7,113 5,138 5,133 5,489 10,443 429 368 368 386 392 1972— M ar.., A p r... M a y ., J u n e .. J u ly .. A ug.. Sept.. O c t.. . N ov.. D ec.. , 56,262 55,009 54.562 56,150 56,028 57.563 57,454 58,858 59,143 59,323 5,903 6,373 6,486 7,132 7,219 6,566 6,851 7,012 6,917 8,204 4,242 4,304 4,468 4,592 4,485 4 ,600 4,716 4,935 5,137 5,428 34,654 32,147 31,300 31,659 32,738 33,573 32,569 32,867 32,394 31,523 10,947 11,691 11,810 12,248 11,106 12,368 12,840 13,505 14,152 13,671 1973—J a n ... Feb.*. M ar.* 57,806 62,820 64,439 7,335 7,661 7,525 5,375 5,440 5,478 29,854 36,248 37,692 14,717 12,958 13,196 T otal 1969............... 19707............ 19718........... D eposits O ther short term liab.4 Total D eposits U.S. Treasury bills and certifi cates 3 O ther short term liab.4 D em and Tim e2 11,077 19.333 19.333 39,679 39,018 1,930 1.652 1.652 1,620 1,327 2,942 2.554 2.554 2,504 2,039 3,844 13.367 13.367 32.311 32.311 2,159 1,612 1,612 3,086 3,176 516 494 499 519 481 455 478 538 543 496 40,980 38,723 37,850 38,603 39,777 40,611 39,628 40,261 40,040 39,976 1,128 1,246 1,224 1,536 1,521 1,308 1,239 1,335 1,271 1,589 2,148 2,270 2,379 2,469 2,377 2,412 2,454 2,564 2,638 2,858 34,548 32,047 31,209 31,573 32,655 33,499 32,497 32,794 32,315 31,453 2,990 2,993 2,871 2,858 3,054 3,220 3,268 3,398 3,645 3,905 526 513 548 38,517 45,395 46,882 1,405 1,756 1,543 2,857 2,815 2,826 29,779 36,144 37,620 4,304 4,508 4,721 To b an k s10 To other foreigners Payable in dollars End o f period Total D em and T im e2 U.S. Treasury bills and certifi cates D eposits T otal O ther short term liab.4 Deposits Dem and T im e2 U.S. Treasury bills and certifi cates T otal O ther short term liab.4 27,709 J21,166 \2 1 ,208 (13,953 \14,644 23,419 16,917 16,949 10,034 10,722 16,756 12,376 12,385 7,047 3,400 1,999 1,326 1,354 850 320 20 14 14 8 8 4,644 3,202 3,197 2,130 6,995 4,064 4,029 4,039 3,691 3,694 1,711 1,688 1,688 1,660 1,660 1,935 1,886 1,895 1,663 1,666 107 131 131 96 96 312 325 325 274 271 1972—M ar.. A pr.. , M ay. . June. Ju ly .. Aug.. Sept.. O c t.. . N ov.. D ec.. , 15,283 16,286 16,712 17,547 16,251 16,951 17,826 18,597 19,103 19,347 11,115 12,106 12,489 13,091 11,816 12,626 13,277 13,813 14,409 14,496 3,093 3,372 3,569 3,797 3,877 3,555 3,837 3,802 3,940 4,661 359 352 307 309 285 336 353 439 486 545 4 4 3 5 5 6 5 3 5 5 7,658 8,379 8,611 8,981 7,649 8,729 9,083 9,569 9,979 9,284 3,818 3,852 3,890 4,104 4,123 4,040 4,241 4,417 4,322 4,525 1,682 1,756 1,693 1,800 1,821 1,702 1,776 1,875 1,706 1,954 1,735 1,682 1,781 1,815 1,822 1,852 1,909 1,933 2,014 2,025 102 96 88 81 77 67 68 70 75 65 299 318 328 409 402 419 489 538 528 481 1973—Ja n ... Feb.* M ar.* 19,290 17,425 17,557 14,468 12,450 12,590 4,157 4,086 4,176 448 500 518 5 8 9 9,858 7,855 7,887 4,467 4,634 4,590 1,773 1,818 1,805 2,070 2,124 2,134 69 96 63 555 595 588 1969............... 19707 ......... . 19718........... Payable in foreign currencies To banks and o ther foreigners: Payable in foreign cur rencies 1 D ata exclude “ holdings o f dollars” o f the IM F. 8 D ata on second line differ from those on first line because (a) those 2 Excludes negotiable time certificates o f deposit, which are included liabilities of U.S. banks to their foreign branches and those liabilities o f in “ O ther.” U.S. agencies and branches o f foreign banks to their head offices and foreign branches, which were previously reported as deposits, are included 3 Includes nonmarketable certificates o f indebtedness issued to official in “ Other short-term liabilities” ; (b) certain accounts previously classified institutions o f foreign countries. as “ Official institutions” are included in “Banks” ; and (c) a number of 4 Principally bankers’ acceptances, commercial paper, and negotiable reporting banks are included in the series for the first time. time certificates o f deposit. See also note 8(a). ^Foreign central banks and foreign central govts, and their agencies, 5 U.S. Treasury bills and certificates obtained from proceeds o f sales of and Bank for International Settlements and European Fund. gold by the IM F to the United States to acquire income-earning assets. i o Excludes central banks, which are included in “ Official institutions.’* U pon termination o f investment, the same quantity o f gold was reac quired by the IM F. N ote.—“Short term” refers to obligations payable on demand or having 6, Principally the International Bank for Reconstruction and Develop an original maturity o f 1 year or less. F or data on long-term liabilities ment and the Inter-American Development Bank. reported by banks, see Table 10. D ata exclude the “holdings o f dollars” Includes difference between cost value and face value o f securities in of the International M onetary F u n d ; these obligations to the IM F consti IM F gold investment account. 7 D ata on the two lines shown for this date differ because o f changes in tute contingent liabilities, since they represent essentially the am ount o f dollars available for drawings from the IM F by other member countries. reporting coverage. Figures on the first line are comparable in coverage D ata exclude also U.S. Treasury letters o f credit and non-negotiable, nonwith those shown for the preceding date; figures on the second line are interest-bearing special U.S. notes held by the Inter-American Develop comparable with those shown for the following date. ment Bank and the International Development Association. MAY 1973 □ INTL. CAPITAL TRANSAC TION S OF TH E U.S. A 79 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End o f period. Amounts outstanding; in millions o f dollars) Area and country 1972 1971 1973 Dec. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* M ar.* Spain.............................................................. Sweden........................................................... Sw itzerland................................................... T u rk ey ........................................................... U nited K ingdom ........................................ Y ugoslavia.................................................... O ther W estern Europe i ............................ U.S.S.R.......................................................... O ther Eastern E urope................................ 254 701 168 160 3,150 6,596 170 1,888 270 685 303 203 792 3,249 68 7,379 34 1,391 14 53 254 962 215 148 3,514 6,483 179 1,375 847 654 269 231 1,044 2,626 44 7,914 90 1,367 10 68 261 1,159 216 176 4,324 6,601 168 1,424 1,488 769 290 222 1,036 3,626 55 4,945 87 1,379 18 58 272 1,188 209 165 4,317 6,459 165 1,615 1,514 892 334 192 1,033 3,493 59 5,893 102 1,391 10 57 310 1,175 194 163 4,422 5,819 177 1,429 1,490 873 356 246 1,068 3,538 72 5,692 65 1,446 14 71 279 1,159 217 161 4,501 5,809 195 1,346 1,460 895 379 230 1,059 3,073 71 5,683 56 1,428 16 63 245 1,070 254 157 4,630 5,514 190 1,354 1,442 960 413 223 1,081 2,838 96 5,430 98 1,479 10 58 272 1,092 284 163 4,441 5,346 238 1,338 1,468 978 416 256 1,184 2,857 97 5,011 117 1,483 11 81 268 974 321 152 4,433 5,034 210 1,085 1,356 973 439 231 1,189 2,924 109 5,510 82 1,464 14 71 267 1,166 364 158 4,482 10,494 224 1,041 1,762 990 498 222 1,403 2,845 94 4,542 77 1,502 21 65 281 1,285 400 142 5,000 12,963 223 968 2,532 1,018 518 256 1,483 2,906 105 4,657 58 1,584 14 71 T o tal...................................................... 27,530 28,293 28,302 29,360 28,618 28,080 27,541 27,134 26,839 32,216 36,461 C anada............................................................... 3,441 3,966 3,727 3,660 3,730 3,969 3,799 3,484 3,889 3,325 3,290 P a n a m a ......................................................... P eru ................................................................ Uruguay......................................................... Venezuela...................................................... O ther Latin American republics.............. Bahamas 2 ..................................................... Netherlands Antilles and Surinam .......... Other Latin A m erica.................................. 441 342 191 188 6 715 154 164 108 963 655 656 87 37 459 628 136 190 7 733 154 179 117 919 669 486 94 40 457 620 136 196 6 788 165 178 121 831 671 384 88 47 500 550 136 212 6 695 154 178 136 865 701 416 83 45 523 591 134 199 6 690 156 164 137 855 662 461 88 54 532 601 135 192 6 671 151 180 125 924 747 576 82 55 547 564 135 185 6 659 150 183 133 926 751 576 89 57 631 605 137 210 6 831 167 225 140 1,077 860 539 86 44 631 643 132 210 7 783 193 176 140 995 839 290 81 235 689 658 136 218 7 800 200 167 138 1,050 827 260 84 239 687 671 143 184 6 788 171 172 132 949 804 198 83 216 T otal....................................................... 4,708 4,810 4,688 4,675 4,721 4,979 4,961 5,558 5,353 5,471 5,203 39 258 312 89 63 150 14,295 196 306 126 595 39 383 311 105 113 140 14,096 198 346 177 706 39 426 341 122 98 128 13,963 206 345 120 733 39 502 325 105 117 119 14,156 235 364 141 802 39 541 315 91 115 134 14,412 208 379 145 797 39 590 313 103 114 127 15,485 218 382 143 1,016 39 639 310 107 107 141 16,152 201 394 128 965 39 675 318 98 108 177 15,843 192 438 171 1,071 39 737 336 115 101 139 14,570 238 446 211 951 37 783 319 134 96 151 14,733 210 452 187 897 48 816 337 114 89 137 12,344 227 518 172 862 Europe: A ustria........................................................... Belgium-Luxembourg................................. D enm ark....................................................... Finland.......................................................... F rance............................................................ G erm any....................................................... G reece............................................................ N etherlands................................................... N orw ay.......................................................... Latin America: Argentina...................................................... B razil............................................................. C hile............................................................... C olom bia....................................................... C u b a............................................................... Asia: China, People’s Rep. o f (China M ainland) China, Republic of (Taiwan).................... Hong K ong................................................... India ............................................................... Indonesia............. ......................................... Israel............................................................... J a p a n ............................................................. K o rea............................................................. Philippines...................................... .............. T hailand......................................................... O th e r.............................................................. T o tal....................................................... 16,429 16,613 16,521 16,904 17,175 18,529 19,182 19,131 17,882 17,998 15,664 Africa: E gypt.............................................................. M orocco........................................................ South A frica................................................. Z aire............................................................... O th er.............................................................. 24 9 78 12 474 19 11 76 18 608 17 11 92 27 620 19 9 65 15 622 23 9 71 18 649 23 10 57 14 595 24 11 83 17 678 24 12 115 21 768 21 9 111 18 573 28 8 104 23 728 17 13 125 22 739 T o tal....................................................... 597 731 768 729 770 700 814 939 733 891 917 O ther countries: A ustralia........................................................ All other........................................................ 916 42 1,692 45 1,977 45 2,187 47 2,372 69 2,553 47 2,801 46 3,027 51 3,046 65 2,861 57 2,849 54 T otal....................................................... 957 1,737 2,022 2,234 2,441 2,600 2,846 3,077 3,111 2,918 2,903 Total foreign countries.................................. 53,662 56,150 56,028 57,563 57,454 58,858 59,143 59,323 57,806 62,820 64,439 International and regional: International3............................................... Latin American regional............................ O ther regional4............................................ 1,327 298 142 819 347 150 793 300 174 831 335 156 746 329 158 794 320 167 1,030 316 165 951 307 156 930 301 149 957 318 144 974 320 128 Total.......................................... ............ 1,767 1,316 1,266 1,322 1,233 1,281 1,512 1,413 1,380 1,419 1,421 60,737 59,186 64,239 65,860 G rand to ta l........................................... For notes see the following page. 55,430 57,467 57,294 58,884 58,687 60,138 60,654 A 80 INTL. CAPITAL TRANSACTIO N S OF TH E U.S. □ MAY 1973 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY— Continued (End o f period. Amounts outstanding; in millions o f dollars) Supplementary data 5 1970 1972 1971 1970 1972 1971 Area and country Area and country O ther W estern Europe; C yprus................................................... Iceland................................................... Ireland, Rep. o f ................................... Other Latin American republics: Bolivia............. ..................................... C osta R ica............................................ D ominican R epublic.......................... G uatem ala............................................ H aiti....................................................... H onduras.............................................. Jam aica................................................. Paraguay............................................... O ther Latin America: British West Indies.............................. Dec. A pr. Dec. Apr. Dec. 10 10 41 7 10 29 2 11 16 2 9 15 3 9 17 69 41 99 79 75 100 16 34 19 59 16 10 59 43 90 72 80 97 19 44 19 47 15 14 55 62 123 57 78 117 18 42 19 50 17 10 53 70 91 62 83 123 23 50 32 66 17 15 87 92 114 121 76 132 27 58 41 61 22 20 33 38 32 23 36 26 32 4 2 42 11 14 15 35 3 2 67 7 3 19 21 10 5 59 10 2 17 18 5 2 88 9 2 25 ( 7) 2 3 93 10 4 Dec. Jo rd an .................................................... Dec. Apr. Dec 36 2 60 28 28 39 41 43 4 3 161 20 3 46 23 33 29 79 35 4 4 159 16 3 60 25 58 53 80 45 6 6 185 39 2 55 54 59 344 77 5 4 135 17 19 8 38 22 195 17 1 1 9 7 8 10 13 12 6 13 21 91 25 2 1 10 6 5 14 23 11 8 9 23 274 46 2 1 6 9 3 13 31 29 11 14 25 296 56 2 5 6 7 10 7 32 57 10 23 30 393 ( 7) 2 3 11 10 7 ( 7) 25 22 23 27 30 Other Asia—C ont.: 54 5 54 22 38 Ryukyu Islands (incl. O kinawa)6 18 Saudi A rab ia................................... 106 Singapore......................................... 57 4 Sri Lanka (C eylon)....................... 7 179 O ther Africa: Ethiopia (incl. Eritrea)................. Southern R hodesia........................ O ther A sia: Afghanistan.......................................... Bahrain.................................................. B urm a.................................................... Apr. 1 Includes Bank for International Settlements and European Fund. 2 Includes Bermuda through Dec. 1972. 3 D ata exclude “ holdings o f dollars” o f the International M onetary Fund but include IM F gold investment until Feb. 1972, when investment was terminated. All other: New Z ealand.................................. 4 Asian, African, and European regional organizations, except BIS and European Fund, which are included in “ Europe.” 5 Represent a partial breakdown o f the am ounts shown in the “ other” categories (except “ Other Eastern Europe” ). 6 Included in Japan after Apr. 1972. 7 N ot available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions o f dollars) To foreign countries End o f period Total To inti. and regional Total Official institu tions Country or area Other Banks1 foreign ers G er many U nited King dom Other Europe Total Latin America Japan Other Asia All other coun tries 1969................................ 1970................................ 1971................................ 2,490 1,703 902 889 789 446 1,601 914 457 1,505 695 144 56 166 257 40 53 56 * 110 164 46 42 52 7 26 30 239 152 111 655 385 3 582 137 87 70 62 9 1972—M ar..................... A pr...................... M ay.................... June.................... July..................... Aug..................... Sept..................... Oct...................... Nov..................... Dec...................... 1,085 1,103 1,151 1,168 1,157 1,093 1,067 1,068 1,050 999 629 651 686 693 688 650 612 615 599 559 456 453 465 476 469 443 455 453 451 440 127 120 129 127 117 88 99 97 94 94 252 253 253 267 269 269 269 269 269 259 78 80 83 82 84 86 87 87 88 87 165 165 165 165 165 165 167 165 165 165 67 67 66 66 68 68 68 68 68 63 30 32 35 34 34 34 35 37 37 32 103 105 119 135 136 135 135 135 134 136 * * * « * * * * 1 1 72 66 60 58 49 24 33 32 33 33 19 18 20 17 18 17 17 16 14 10 1973—Jan...................... F eb.*.................. M ar.*................. 1,025 1,254 1,374 597 593 679 428 661 695 74 302 328 257 258 263 96 100 103 165 164 164 61 59 66 30 233 233 127 119 120 1 1 1 31 71 95 13 13 16 1 Excludes central banks, which are included with “Official institutions.” MAY 1973 □ IN TL. CAPITAL TR A NSAC TION S OF T H E U.S. A 81 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1972 M ar. Europe: Sw eden................................................. United K ingdom ................................ O ther W estern E u ro p e.................... June M ay Apr. July 1973 Aug. Sept. 6 16 53 268 79 5 6 16 52 280 79 5 6 16 52 288 79 5 6 19 52 264 77 5 6 19 49 265 79 5 6 17 45 280 79 5 6 15 45 293 79 5 Oct. Nov. 6 35 45 308 79 5 D ec. 6 85 45 326 79 5 6 85 45 327 79 5 Jan. 6 110 45 327 79 5 Feb.* M ar.* 6 135 44 276 79 5 6 135 43 278 79 5 426 438 445 424 422 432 443 478 545 547 572 544 546 C an a d a ..................................................... 178 179 166 313 313 372 432 479 559 558 558 559 561 Latin America: Latin American republics................. O ther Latin A m erica........................ 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 T o tal............................................ 7 7 7 7 7 7 7 7 7 7 7 7 7 O ther A sia.......................................... 2,391 10 2,415 10 2,777 10 2,901 10 3,125 10 3,310 10 3,481 10 3,756 10 4,003 10 4,380 10 4,867 10 5,421 10 5,961 10 T o tal............................................ 2,401 2,425 2,787 2,912 3,136 3,321 3,492 3,766 4,013 4,391 4,877 5,431 5,971 8 8 8 8 8 127 133 133 133 133 183 183 183 * * * * * * • * * 25 25 25 25 3,020 3,057 3,413 3,664 3,886 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 126 32 136 33 136 25 136 26 136 27 176 27 186 27 186 27 186 28 186 28 186 28 176 26 186 26 Asia: In d ia .................................................... International and regional: International....................................... Latin American regional................. 158 168 161 161 162 203 213 213 214 214 214 202 212 3,177 3,226 3,574 3,825 4,048 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 N ote.—D ata represent estimated official and private holdings o f marketable U.S. Treasury securities with an original m aturity o f more than 1 year, and are based on benchm ark surveys o f holdings and regular monthly reports o f securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions o f dollars or dollar equivalent) Payable in foreign currencies Payable in dollars End o f period Total Total Bel gium C an ada 1 China, Rep. of (Taiwan) 196 9 197 0 197 1 43,181 3,563 5 9,657 1,431 2,480 7,829 32 32 32 1,129 2,289 2,640 20 20 20 1972—Apr. M ay June July. Aug. Sept. Oct.. Nov. Dec. 12.440 12.441 12.441 15.864 15.864 16,022 15.871 15.872 15.872 10,688 10,688 10,688 14.188 14.188 14.345 14.345 14.345 14,333 32 32 32 32 32 32 32 32 20 2.840 2.840 2.840 2.840 2.840 2.840 2.840 2.840 2.840 1973—Jan.. Feb. M ar. Apr. 16,016 15,863 615,870 616,015 14.474 14.474 14,464 14,459 20 20 20 20 2.840 2.840 2.840 2.840 1 Includes bonds issued in 1964 to the Government o f C anada in connec tion with transactions under the Columbia River treaty. Amounts out standing end o f 1967 through Oct. 1968, $114 million; Nov. 1968 through Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million: and Oct. 1970 through Oct. 1971, $24 million. 2 Notes issued to the Government o f Italy in connection with mili tary purchases in the United States. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 million equivalent were held by a group o f G erman commercial banks from Ger many Italy 2 K orea Thai land Total Ger many 3 Italy Switz erland 125 541 541 1.215 5,000 135 25 22 100 100 100 4 1,750 1,083 5 1,827 4 1,084 542 612 20 20 20 20 20 20 20 20 20 20 7.658 7.658 7.658 11.158 11.158 11.315 11.315 11.315 11.315 22 22 22 22 22 22 22 22 22 100 100 100 100 100 100 100 100 100 1.752 1.753 1.753 1.676 1.676 1.677 1,526 1,528 1,539 536 536 536 459 459 459 306 306 306 1.216 1.217 1.217 1.217 1.217 1.218 1,220 1,222 1,233 20 10 5 11.471 11.471 11.471 11.471 22 22 22 22 100 100 100 100 1,542 1,389 61,407 61,556 306 153 153 172 1.236 1.236 1,254 1,384 June 1968 through Nov. 1972. The dollar value o f these notes was increased by $10 million in Oct. 1969 and by $18 million as o f Dec. 31, 1971. 4 Includes an increase in dollar value o f $84 million resulting from revaluation o f the German m ark in Oct. 1969. 5 Includes $106 million increase in dollar value o f foreign currency obligations revalued to reflect m arket exchange rates as o f Dec. 31, 1971. 6 Includes $15 million increase in M ar. and $145 million increase in Apr. in dollar value o f foreign currency obligations revalued to reflect m arket exchange rates. A 82 INTL. CAPITAL TRANSACTION S OF TH E U.S. □ MAY 1973 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End o f period. Amounts outstanding; in millions o f dollars) 1972 1971 1973 Area and country Dec. June Europe: Aug. July Sept. Oct. Nov. Dec. Jan. Feb.* M ar.* O ther Western E urope............................... U .S.S.R.......................................................... Other Eastern E urope................................ 11 57 49 135 263 235 30 160 105 67 12 70 118 145 3 559 19 12 28 37 15 73 52 126 316 315 24 200 117 64 21 141 95 148 3 550 22 24 57 43 16 73 50 124 306 286 25 194 97 71 25 156 114 131 3 736 23 23 62 44 33 66 63 128 349 229 27 190 102 56 21 160 120 137 4 666 21 25 64 40 8 70 60 120 317 268 28 173 116 52 27 194 131 180 7 643 22 24 55 38 15 87 52 119 274 287 27 177 104 62 22 229 128 186 4 657 18 23 30 40 10 84 57 123 274 296 27 170 101 62 21 215 123 150 4 729 16 19 32 38 8 120 59 118 331 321 29 255 108 69 19 207 156 125 6 855 22 20 41 49 7 67 58 127 275 267 34 221 93 62 21 210 176 187 5 673 17 23 44 47 T o tal....................................................... 2,114 2,406 2,558 2,503 2,531 2,543 2,553 2,919 2,613 3,432 3,268 1,627 1,855 2,299 2,484 2,026 1,681 1,722 1,926 1,939 2,374 2,461 P an am a.......................................................... P e ru ................................................................ U ruguay......................................................... Venezuela...................................................... Other Latin American republics.............. Bahamas 1..................................................... N etherlands Antilles and Surinam .......... O ther Latin A m erica.................................. 305 435 139 380 13 934 125 176 41 268 374 262 18 26 325 551 78 404 13 1,151 130 160 35 314 366 319 16 25 323 568 77 396 13 1,180 132 157 38 333 357 389 16 22 339 600 71 384 13 1,163 137 158 40 343 355 425 16 29 352 639 79 378 13 1,123 150 137 43 335 345 426 15 28 363 659 58 384 13 1,127 145 138 36 361 353 369 15 32 357 633 53 396 15 1,168 179 147 38 386 368 401 13 33 379 652 52 418 13 1,202 246 145 40 383 388 474 14 36 389 641 54 407 12 1,202 219 129 40 388 393 412 15 57 417 727 49 412 13 1,213 220 136 43 385 378 515 15 68 406 740 51 380 13 1,320 212 132 40 404 367 461 20 105 Belgium-Luxembourg................................ D en m ark....................................................... Finland........................................................... G erm any....................................................... G reece............................................................ Ita ly ................................................................ N etherlands................................................... N orw ay.......................................................... Portugal......................................................... Sweden........................................................... Sw itzerland................................................... T urkey........................................................... Latin America: Argentina....................................................... B razil.............................................................. C hile............................................................... C olom bia....................................................... 13 124 59 122 312 412 23 271 152 63 26 236 249 206 6 1,001 20 26 55 53 9 100 60 131 424 370 29 269 118 70 20 282 235 152 5 847 18 22 54 52 T otal....................................................... 3,494 3,885 3,999 4,073 4,063 4,053 4,189 4,439 4,359 4,590 4,649 Asia: China, People’s Rep. o f (China M ainland) China, Republic o f (Taiw ah).................... Hong K ong................................................... In d ia............................................................... Indonesia....................................................... Israel............................................................... J a p a n .............................................................. K o rea.............................................................. Philippines..................................................... T hailand......................................................... O th er.............................................................. 1 109 70 21 41 129 4,280 348 138 172 252 2 182 111 16 45 78 3,570 346 138 183 221 2 178 100 14 44 101 3,527 344 143 174 245 2 173 85 17 60 87 3,473 342 144 187 230 2 180 85 18 66 78 3,461 321 144 187 229 1 187 76 15 74 87 3,727 302 151 177 244 1 201 76 17 74 105 4,011 317 160 183 262 1 194 93 14 87 105 4,162 296 149 191 301 2 205 84 15 87 126 4,081 271 148 184 288 2 211 103 15 103 100 5,277 288 150 195 335 2 231 111 16 127 141 5,568 301 140 205 272 T otal....................................................... 5,560 4,891 4,871 4,800 4,773 5,042 5,408 5,594 5,490 6,780 7,115 10 4 158 21 99 16 4 160 14 124 14 4 149 12 121 12 4 142 12 114 15 5 139 12 124 17 5 134 14 113 16 4 145 10 116 21 4 143 13 127 22 6 150 15 116 20 5 155 13 113 20 7 155 11 133 T otal....................................................... 292 318 300 283 294 283 290 308 309 305 325 O ther countries: A ustralia........................................................ All other........................................................ 158 28 176 34 210 38 184 41 205 44 229 36 271 36 291 40 272 50 256 44 244 47 T otal....................................................... 186 211 248 225 249 265 308 330 322 300 291 Total foreign countries................................... 13,273 13,567 14,275 14,367 13,936 13,867 14,469 15,516 15,032 17,782 18,109 3 3 4 6 6 3 3 3 1 14,278 | 14,370 13,940 13,873 14,474 15,519 15,035 17,785 18,111 Africa: Egypt.............................................................. M orocco........................................................ South A frica................................................. Z aire............................................................... International and regional............................. 3 4 G rand to ta l.......................................... 13,277 13,570 1 Includes Bermuda through Dec. 1972. N ote.—Short-term claims are principally the following items payable on demand or with a contractual m aturity o f not more than 1 year: loans made to, and acceptances made for, foreigners; drafts drawn against foreigners, where collection is being made by banks and bankers for their own account or for account o f their customers in the United S tates; and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. MAY 1973 □ INTL. CAPITAL TR ANSACTION S OF TH E U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to— End o f period Total Official institu tions B anks* Others Collec tions out stand ing Total Total Accept ances made for acct. o f for eigners Other Total Foreign govt, se Deposits curities, with for coml. eigners and fi nance paper Other 196 9 197 0 1971 2........... 9,680 10,802 f13,170 113,277 9,165 10,192 12,328 12,381 3,278 3,051 4,503 3,966 262 119 223 224 1,943 1,720 2,613 2,080 1,073 1,212 1,667 1,662 2,015 2,389 2.475 2.475 3,202 3,985 4,243 4,254 670 766 1,107 1,686 516 610 842 895 352 352 549 548 89 92 119 173 74 166 174 174 1972—M ar.. A pr.. , M ay. . J u n e ., July. . Aug.. Sept.. O ct... N o v .. D e c .. , 14,052 13,788 13,465 13,570 14,278 14,370 13,940 13,873 14,474 15,519 13.052 13,003 12,630 12,737 13,376 13,424 13.052 13,098 13,705 14,674 4,175 4,451 4,602 4,760 5,054 4,988 4,991 5,161 5,354 5,725 167 163 169 162 162 151 143 146 160 166 2,141 2,354 2,518 2,575 2,779 2,710 2,572 2,666 2,700 2,974 1,867 1,935 1,915 2,022 2,113 2,127 2,276 2,348 2,495 2,585 2.476 2,469 2,541 2,650 2,705 2,805 2,882 2,987 3,130 3,269 4,410 4,252 3,838 3,483 3,227 3,082 2,967 2,961 3,139 3,204 1,991 1,830 1,650 1,844 2,390 2,549 2,212 1,989 2,082 2,476 1,000 785 835 833 902 946 888 775 769 845 579 498 530 486 516 482 431 408 412 441 283 177 187 222 278 338 330 209 219 223 138 111 118 125 108 126 127 158 138 181 1973—J a n ... Feb.*. M ar.* 15,035 17,785 18,111 14,211 16,717 17,160 5,430 6,458 6,537 143 166 141 2,813 3,675 3,696 2,475 2,617 2,700 3,234 3,515 3,697 3,103 3,321 3,463 2,443 3,423 3,463 824 1,067 951 443 595 524 253 312 262 127 160 165 1 Excludes central banks, which are included with “ Official institutions.” 2 D ata on second line differ from those on first line because (a) those claims of U.S. banks on their foreign branches and those claims o f U.S. agencies and branches o f foreign banks on their head offices and foreign branches, which were previously reported as “ Loans” , are included in “ Other short-term claims” ; and (b) a num ber o f reporting banks are included in the series for the first time. 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions o f dollars) Type Country or area Payable in dollars End o f period Total Loans to— Other long term claims Payable in foreign curren cies United K ing dom O ther Europe Latin Canada America Japan O ther Asia All other countries Total Official institu tions 3,250 3,075 3,664 2,806 2,698 3,342 502 504 575 209 236 315 2,096 1,958 2,452 426 352 300 18 25 22 67 71 130 411 411 593 408 312 228 1,329 1,325 1,458 88 115 246 568 548 583 378 292 426 1972—Mar, , , , 3,842 3,944 M a y .. . . 4,043 J u n e .. . . 4,188 July___ 4,307 Aug....... 4,384 S ept.. . . 4,531 O ct........ 4,629 N o v .. . . 4,668 D ec........ 4,916 3,531 3,622 3,728 3,871 4,000 4,070 4,216 4,302 4,345 4,504 644 654 674 719 757 771 796 796 819 833 329 335 335 363 356 398 402 412 432 430 2,559 2,633 2,719 2,788 2,887 2,900 3,019 3,094 3,093 3,241 284 295 285 287 275 281 282 292 291 375 26 27 30 31 32 34 33 35 33 37 131 143 140 139 146 141 128 136 137 139 606 626 638 631 674 671 687 658 662 708 233 230 251 284 283 277 288 335 341 382 1,498 1,542 1,584 1,644 1,724 1,789 1,861 1,893 1,875 1,991 278 290 281 309 294 288 289 302 301 315 651 673 707 735 754 773 802 828 863 881 444 440 443 445 431 445 476 477 490 500 4,956 5,060 5,210 4,535 4,598 4,754 833 838 884 440 462 479 3,262 3,298 3,391 379 411 412 41 52 44 144 135 121 728 763 857 403 431 450 1,957 1,977 1,967 324 313 307 897 911 968 503 531 539 1969................... 1970................... 1971................... 1973—J a n ........ F e b .* ... M ar.* . . Other B anks1 foreign ers i Excludes central banks, which are included with “Official institutions.” INTL. CAPITAL TRANSACTION S OF TH E U.S. □ MAY 1973 A 84 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate securities 2 M arketable U.S. Treas. bonds and notes 1 Foreign bonds Foreign stocks N et purchases or sales Period Total Pur chases Foreign Intl. and regional Total Official N et pur Pur chases or chases sales Sales N et pur Pur chases or chases sales Net pur chases or sales Sales O ther 123 11,426 9,844 -1 1 9 14,573 13,158 - 2 3 18,922 14,958 5,845 3,272 -4 8 197 0 197 1 197 2 1973—Jan .-M ar.*----- 56 1,672 3,316 1,631 —25 130 57 2 82 1,542 3,258 1,633 -4 1 1,661 3,281 1,681 1972—M a r A pr.................... M ay ................... Ju n e................... Ju ly ................... Aug.................... Sept................... O ct..................... N ov.................... Dec.................... 230 48 348 251 223 413 258 356 395 404 1 11 -8 1 1 40 10 229 38 356 251 222 373 247 356 395 404 245 25 350 274 224 365 237 340 377 403 -1 6 13 6 -2 3 -2 9 11 17 18 1 2,030 1,678 1,346 1,648 1,151 1,495 1,154 1,317 1,910 2,007 1973—Ja........................n Feb.*................. M ar.* ............... 562 515 554 562 527 544 562 579 540 -52 3 1,855 1,776 2,215 -1 2 10 Sales 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to official institutions o f foreign countries; see Table 12. 2 Includes State and local govt, securities, and securities o f U.S. Govt, agencies and corporations. Also includes issues o f new debt securities 1,582 1,415 3,964 2,573 1,490 1,687 1,898 474 2,441 2,621 2,954 593 -9 5 1 -9 3 5 -1,057 -1 1 9 1,033 1,385 2,532 559 998 1,434 2,115 408 35 -4 9 417 150 1,527 1,420 1,111 1,407 1,152 1,217 841 1,038 1,289 1,368 503 258 235 241 * 278 314 279 621 638 188 162 128 109 188 129 173 153 136 243 278 150 314 339 100 98 161 204 171 465 -9 0 11 -1 8 6 -2 3 0 88 30 12 -5 1 -3 5 -2 2 2 290 197 245 226 155 242 173 188 192 233 269 181 141 269 163 179 142 115 110 178 20 16 104 -4 3 -8 63 32 74 82 55 1,118 1,062 1,092 737 713 1,123 191 144 139 323 144 125 -1 3 2 -1 13 161 190 207 155 143 110 7 47 97 sold abroad by U.S. corporations organized to finance direct investments abroad. N ote.—Statistics include transactions o f international and regional organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions o f dollars) Period Total France G er many N ether Switzer United land K ingdom lands Other Europe Total Europe Latin Canada America Asia 1970........................ 626 731 1971....................... 1972....................... 2,140 1973—Jan.-M ar.* 1,273 58 87 372 93 195 131 -5 1 42 128 219 297 160 110 168 639 435 -3 3 -4 9 561 222 24 71 92 87 482 627 1,911 1,038 -9 -9 3 -7 8 85 47 37 -3 2 -2 5 85 108 256 152 1972—M ar........... A pr............ M ay.......... Ju n e .......... Ju ly........... Aug............ Sept........... Oct............. D ec............ 177 78 55 32 -3 6 252 165 160 489 350 19 -9 19 8 -6 60 36 65 85 48 -1 2 -2 2 -1 4 -2 0 -4 4 -1 3 -7 6 44 -3 27 19 8 15 -1 4 8 15 24 55 42 56 1 27 27 56 68 51 83 61 59 95 46 20 -1 15 101 56 -8 9 150 132 • * 2 5 -4 1 26 11 20 52 19 185 35 62 33 -3 4 249 162 109 447 297 -2 6 -2 3 -1 7 -1 4 8 -1 2 8 14 -1 3 13 -2 2 -4 2 -2 5 -1 6 1 2 25 8 8 49 30 32 12 4 11 29 -8 42 1973—Jan ............. Feb.*........ M ar.*. . . . 489 438 347 32 25 35 29 4 8 47 67 47 142 149 144 118 82 21 24 34 29 392 361 284 24 36 26 -2 0 -1 0 5 85 46 21 Africa — 1 -2 -1 2 22 54 86 21 * * * * * * * * * * * * * * * -1 -1 * 7 6 2 9 7 6 3 12 12 4 * 1 * 1 * 1 7 4 10 * 1 1 • — Other Intl. & countries regional 1 MAY 1973 □ INTL. CAPITAL TR ANSACTION S OF TH E U.S. A 85 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Total France G er many 197 0 197 1 197 2 956 684 1,824 35 15 336 48 35 77 Period 1973—Jan.-M ar.^ 1,300 62 1972— M a r A pr............ M ay.......... Ju n e........... Ju ly ........... Aug............ Sept........... O ct............ N ov........... D ec............ 326 180 180 210 36 27 149 120 132 289 5 38 40 95 9 6 7 36 2 56 1973—Ja............... n Feb.*......... M ar.p . . . . 248 276 777 12 6 45 N ether Switzer United land Kingdom lands Other Europe Total Europe 118 327 320 91 39 315 464 612 1,246 Latin Canada America 37 -1 65 134 197 134 52 82 297 497 20 * 8 8 6 3 1 18 29 -1 -3 21 41 17 15 35 -1 14 64 -8 71 4 -3 4 -1 6 18 4 46 49 15 -1 3 15 17 12 45 80 54 42 60 116 38 121 148 33 62 127 138 138 210 -3 -1 11 23 4 9 10 5 -6 8 -2 2 -3 29 30 -7 38 46 -2 73 66 158 149 155 193 1 36 3 3 -3 1 -4 4 4 7 30 30 N ote.—Statistics include State and local govt, securities, and securities o f U.S. Govt, agencies and corporations. Also includes issues o f new 128 37 82 Asia Africa Other Intl. and countries regional 28 -2 323 -12 -21 324 39 148 762 26 * 2 -1 * 3 1 3 192 27 11 8 1 -1 * 2 1 29 18 114 10 31 -4 -4 4 12 -2 8 * 38 6 1 4 31 110 621 60 -2 6 -4 2 debt securities sold abroad by U.S. corporations organized to finance di rect investments abroad. 19. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM FOREIGN SECURITIES, BY AREA 20. FOREIGN CREDIT AND DEBIT BALANCES IN BROKERAGE ACCOUNTS (In millions o f dollars) (Amounts outstanding; in millions o f dollars) Intl. and re gional Total foreign coun tries —915 -9 8 4 —640 —254 -3 1 0 -9 0 —662 -6 7 3 -5 5 0 1973—Jan .M ar.* \. 31 30 1 1972—M a r .... A p r... . M ay. . . June. . . J u ly .. . . A ug---S e p t.... Oct. . .. N o v .. . . D e c .. . . -7 0 28 -8 2 -2 7 3 81 93 44 23 47 -1 6 7 18 7 7 10 78 -1 6 16 11 9 -8 8 21 -8 9 -2 8 3 2 94 38 7 36 -1 7 6 1973—Ja n ....... F eb .p . . M ar.p . . -1 2 6 46 110 9 -2 23 -1 3 5 48 87 11 -3 19 Period 1970................. 1971.................. 1972.................. Total End o f period C redit balances (due to foreigners) D ebit balances (due from foreigners) 20 32 29 1970—M ar.............................. June............................. Sept.............................. 368 334 291 349 220 182 203 281 * 2 -3 3 3 -9 1971—M ar.............................. June.............................. Sept.............................. 511 419 333 311 314 300 320 314 325 312 286 365 379 339 336 401 2 10 5 2 * 2 2 1 2 * 1 * * * * * 1 Latin Amer ica Asia Af rica —586 -2 7 5 -6 5 1 -1 1 -4 6 -6 7 -1 2 9 -3 6 6 -2 7 1 —6 -5 7 -6 6 27 7 -7 8 43 58 65 75 26 36 50 47 53 39 -1 6 -7 4 13 -1 3 8 -2 0 1 23 49 3 -7 3 -4 -1 5 8 -2 -3 1 1 -1 5 3 -1 10 2 8 -2 9 -4 7 -3 3 -2 1 -9 4 -6 2 -5 -2 4 23 -8 23 -6 7 40 34 -7 0 -1 6 8 -9 26 25 Eu C anada rope 50 38 476 * * * ♦ * * Other coun tries N ote.—D ata represent the money credit balances and money debit balances appearing on the books o f reporting brokers and dealers in the United States, in accounts o f foreigners with them, and in their accounts carried by f oreigners. Notes to Tables 21a and 21b on following pages: 1 Total assets and total liabilities payable in U.S. dollars amounted to F o r a given m onth, total assets may not equal total liabilities because $12,058 million and $12,330 million, respectively, on Jan. 31, 1973. some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange N ote.—Components may not add to totals due to rounding. rates, which are used to convert foreign currency values into equivalent dollar values. A 86 INTL. CAPITAL TRANSACTION S OF T H E U.S. □ MAY 1973 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions o f dollars) Claims on U.S. Location and currency form M onth-end Total T otal IN ALL FO R EIG N COUN TRIES IN UNITED KINGDOM Total, all currencies................................ Payable in U.S. d o llars.......................... IN TH E BAHAMAS Total, all currencies................................ Other Total 47 j 363 61,334 9,740 4,798 7,248 2,311 2,491 36,221 2,486 54,752 1972—Jan ............. F eb............. M ar............ A pr............ M ay ........... June........... Ju ly r ......... Aug............ Sept............ O ct............. N ov............ D ec............ 59,926 61,816 65,033 63,755 64,375 69,623 69,963 72,856 73,414 74,805 76,241 80,034 4,331 4,116 4,565 4,846 4,619 4,854 4,058 4,504 4,927 4,967 4,456 4,735 1,986 1,742 2,085 2,426 2,080 2,279 1,514 1,759 2,242 2,239 1,824 2,124 2,345 2,374 2,480 2,421 2,539 2,576 2,544 2,745 2,685 2,728 2,632 2,611 1973—Jan ............. 81,200 4,926 2,327 2,600 74,007 1970—D ec............ 1971—D ec............ 34,619 40,182 9,452 4,541 7,233 2,305 2,219 24,642 2,236 35,064 1972— Jan ............. 38,867 F eb............. 39,915 M ar............ 42,993 A pr............ 41,353 M ay ........... 41,935 Ju n e ........... 44,905 Ju ly r ......... 45,034 A ug............ 47,175 Sept............ 47,749 O ct............. 48,995 N ov............ 49,631 D ec............ 54,058 4,070 3,864 4,300 4,562 4,393 4,585 3,811 4,263 4,667 4,669 4,173 4,473 1,973 1,732 2,062 2,387 2,063 2,260 1,488 1,741 2,221 2,216 1,803 2,102 2,097 2,132 2,238 2,176 2,330 2,325 2,324 2,523 2,445 2,453 2,371 2,371 53,701 55,839 58,653 57,091 57,946 62,901 63,941 66,268 66,140 67,608 69,425 73,031 34,169 35,369 38,065 36,123 36,889 39,669 40,523 42,184 42,204 43,565 44,664 48,768 Other branches o f parent bank Other banks 6,887 16,997 11,211 24,550 Offi N on cial bank insti for tutions eigners O ther 695 11,643 1,167 17,823 1,403 1,785 24,464 25,615 28,066 26,354 27,061 30,586 30,419 31,821 32,153 33,104 34,203 36,738 1,211 1,118 1,173 1,179 1,276 1,342 1,407 1,566 1,538 1,550 1,577 1,665 17,581 18,093 18,781 19,015 19,146 19,514 20,492 21,225 21,114 21,612 22,295 22,910 1,894 1,861 1,815 1,817 1,810 1,867 1,965 2,084 2,346 2,230 2,360 2,268 11,946 36,797 1,621 23,643 2,267 4,213 6,659 13,265 18,006 362 864 6,802 9,536 525 577 6,427 6,637 6,725 6,358 6,475 6,598 7,260 7,320 7,048 7,391 7,439 8,083 17,710 18,510 20,604 19,015 19,575 22,049 21,666 22,717 23,040 23,560 24,123 26,907 822 821 843 881 936 914 984 1,063 1,104 1,085 1,083 1,128 9,210 9,400 9,891 9,870 9,903 10,108 10,613 11,085 11,012 11,528 12,019 12,651 628 682 631 668 653 651 700 728 879 761 793 817 10,445 11,013 10,633 10,542 10,463 11,459 11,622 11,655 11,335 11,343 11,350 11,717 1973—Jan ............. 54,197 4,592 2,303 2,289 48,829 8,094 26,764 1,063 12,908 777 1970—D ec............ 1971—Dec............ 28,451 34,552 6,729 2,694 5,214 1,230 1 515 21,121 1,464 30,996 3 475 11 095 5*690 16,211 316 476 6,235 8,619 601 862 1972—Jan ............. Feb............. M ar............ A pr............ M ay ........... June........... July r .......... A ug............ Sept............ O ct............. N ov............ D ec............ 33,877 34,712 37,104 36,126 36,311 39,452 39,463 40,596 40,565 41,649 41,600 43,684 2,514 2,247 2,503 2,738 2,441 2,298 1,876 2,117 2,325 2,409 1,939 2,234 1,228 1,044 1,312 1,574 1,282 1,199 810 1,078 1,252 1,386 907 1,138 1,287 1,204 1,190 1,163 1,160 1,099 1,066 1,039 1,073 1,023 1,032 1,096 16,411 17,097 19,177 17,945 18,304 21,096 20,946 21,411 21,319 22,157 22,671 23,983 469 8,325 454 8,482 491 8,762 507 8,865 585 9,020 568 9,039 546 9,507 595 9,844 650 9,523 630 9,662 584 9,898 609 10,179 916 848 790 803 750 846 847 941 1,097 1,040 1,018 1,020 2,585 5,637 24,333 30,447 31,617 33,810 32,585 33,119 36,307 36,741 37,538 37,144 38,201 38,643 40,430 5,243 5,584 5,380 5,269 5,209 5,604 5,742 5,688 5,651 5,751 5,490 5,659 1973—Jan ............. 44,347 1,466 1,118 40,796 574 10,252 966 1970—D ec............ 1971—D ec............ 22,574 24,428 6 5Q6 2,585 15,655 21,493 2 223 4^135 9,420 12,762 4 012 4,596 323 350 1972—Feb............. M ar............ A pr............ M ay ........... Ju n e........... July r ......... Aug............ Sept.. O ct............. N ov............ D ec............ 23,816 26,097 24,967 24,928 27,114 26,680 27,185 27,253 27,978 27,865 30,381 2,153 2,401 2,620 2,356 2,210 1,791 2,036 2,246 2,307 1,846 2,146 21,254 23,324 21,943 22,195 24,535 24,494 24,734 24,532 25,244 25,579 27,787 3,960' 3,926 3,708 3,577 3,931 4,097 4,013 4,004 4,169 4,049 4,326 13,058 14,865 13, 754 14, 101 15,983 15,589 15, 768 15,811 16,249 16,399 17,976 4,237 4,534 4,481 4,517 4,621 4,808 4,953 4,717 4,827 5,132 5,485 409 372 404 377 366 395 415 476 427 439 447 27,778 4,184 1973—Jan ............. 30,652 5,526 405 1970—D ec............ 1971—D ec............ 4,815 8,493 1,173 1,282 455 505 717 778 3 583 7,119 2,468 2 119 3,798 1 464 3,320 59 92 1972—Jan............. Feb............. M ar............ A pr............ M ay ........... 7,912 8,375 8,828 8,621 9,097 10,075 10,329 11,516 11,909 12,026 12,330 13,091 953 994 1,178 1,244 1,361 1,552 1,409 1,530 1,612 1,739 1,586 1,496 157 107 126 204 195 295 110 118 221 251 221 225 796 888 1,052 1,040 1,166 1,257 1,298 1,413 1,391 1,489 1,365 1,272 6,866 7,271 7,542 7,269 7,618 8,396 8,786 9,846 10,145 10,129 10,577 11,419 3,630 3,816 4,030 3,780 4,183 4,825 4,924 5,682 5,926 5,843 6,209 6,965 3,237 3,455 3,513 3,489 3,435 3,571 3,863 4,164 4,219 4,286 4,368 4,454 93 110 108 108 117 128 134 139 152 157 167 175 1973—Jan ............. 113,065 1,387 182 1,206 11,496 6,754 4,742 181 18,069 -------Y---------- Sept............ Oct............. N ov............ D ec............ Parent bank 1970—D ec............ 1971—D ec............ July............ For notes see p. A-85. Claims on foreigners MAY 1973 □ INTL. CAPITAL TRANSAC TION S OF TH E U.S. A 87 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners To U.S. Total Total Parent bank Other Total 1,859 42,812 2,445 56,124 O ther branches o f parent bank 29,733 30,694 33,710 32,379 33,114 36,113 35,860 37,327 38,331 38,477 39,324 42,531 5,858 6,208 6,331 6,617 6,649 7,223 7,176 7,841 8,039 8,236 8,401 8,486 9,075 9,085 9,521 9,635 9,830 10,187 10,393 10,714 10,400 11,289 11,642 11,483 1,996 2,018 2,062 2,051 1,908 1,944 2,039 2,200 2,258 2,342 2,493 2,634 75,273 11,746 42,260 9,236 12,032 2,S13 ............ 1973—Jan. 1,677 32,509 2,163 38,083 4,079 19,816 6,653 22,069 3,737 4,433 4,877 4,928 1,243 .............1970—Dec. 1,276 .............1971—Dec. 6,710 6,853 6,945 6,560 6,648 7,277 7,507 7,660 7,401 7,706 7,741 8,178 20,859 21,742 24,433 22,854 23,603 25,807 24,766 25,862 26,545 26,776 27,241 30,253 4,726 4,783 4,957 5,202 5,170 5,656 5,777 6,252 6,331 6,567 6,734 6,913 5,289 5,226 5,402 5,260 5,333 5,401 5,584 5,690 5,811 6,264 6,365 6,467 1,182 ............ 1972—Jan. 1,212 1,225 1,197 1,058 1,021 1,072 .......................'July 1,173 1,204 1,233 1,305 1,459 2,302 52,114 8,400 29,234 7,680 6,800 1,297 ............ 1973—Jan. 1,222 26,520 1,550 32,128 2,320 3,401 16,533 19,137 3,119 4,464 4,548 5,126 1,494 1,468 1,447 1,272 1,291 1,300 1,347 1,345 1,321 1,329 1,349 1,343 3,296 3,417 3,209 3,056 3,154 3,160 3,464 3,423 3,139 3,060 2,928 2,961 18,076 18,705 20,989 19,893 19,908 22,144 21,720 22,236 22,746 23,001 22,769 24,776 4,680 4,788 4,996 5,172 5,158 5,542 5,565 6,007 6,102 6,309 6,340 6,453 5,421 5,461 5,594 5,859 5,871 6,256 6,326 6,499 6,087 6,854 7,112 7,042 778 ............ 1972—Jan. 759 792 807 824 903 892 933 1,034 959 969 997 61,816 65.033 63,755 64.374 69,622 69,963 72,855 73,413 74,804 76,239 80,035 2,934 3,167 3,046 2,978 2,819 3,086 3,212 3,263 3,262 3,256 3,233 3,559 654 776 635 621 562 646 736 680 727 716 802 1,000 2,280 2,391 2,411 2,356 2,256 2,440 2,476 2,583 2,535 2,539 2,432 2,559 54,991 56,632 59,925 58,726 59,648 64,592 64,712 67,392 67,892 69,206 70,513 73,842 10,324 10,645 10,363 10,097 10,055 11,069 11,283 11,510 11,123 11,204 11,146 11,344 81,200 3,414 836 2,578 36,086 42.033 2,334 2,674 657 511 41,317 42,557 45,603 43,663 44,223 47,834 47,460 49,437 50,085 51,335 52,139 56.375 2,552 2,740 2,642 2,589 2,411 2,671 2,754 2,800 2,793 2,789 2,753 3,104 542 641 507 514 439 523 611 549 605 582 651 848 2,010 2,099 2,135 2,075 1,973 2,148 2,143 2,252 2,188 2,207 2,102 2,256 56,405 2,995 693 28,451 34,552 1,339 1,660 116 111 1,626 1,582 1,525 1,340 1,397 1,447 1,497 1,498 1,457 1,465 1,481 1,456 132 114 78 68 105 147 150 153 136 136 132 113 i \ 30,926> M onth-end 7,377 8,756 716 669 i Other 4,180 5,513 2,575 3,114 ) > i N on Offi bank cial for insti eigners tutions 6,426 24,829 10,773 31,081 61,336 36,311 Other banks 37,584 38,605 41,736 39,877 40,754 44,142 43,634 45,464 46,088 47,313 48,082 51,811 31,473 32,371 34,787 33,980 34,090 37,102 37,075 38,165 38,074 39,225 39,149 41,232 1,967 .............1970—Dec. 2,098 .............1971—Dec. 592 .............1970—Dec. 763 ............. 1971—Dec. 1,501 107 1,394 41,933 3,277 23,959 7,285 7,412 913 ............ 1973—Jan. 1,208 1,412 98 23 1,110 21,495 1,389 23,059 1,548 13,684 2,164 14,038 2,859 3,676 3,404 3,181 302 .............1970—Dec. 374 ............. 1971—Dec. 1,377 1,327 1,154 1,202 1,250 1,294 1,271 1,230 1,245 1,270 1,276 50 19 26 58 103 103 100 86 80 92 72 1,327 1,308 1,129 1,144 1,147 1,190 1,171 1,144 1,165 1,178 1,203 2,081 13,670 2,093 15,694 1,852 14,465 2,054 14,610 2,070 15,874 2,197 15,000 2,140 15,217 1,926 15,376 1,942 15,597 1,959 15,383 2,008 17,478 3,824 4,041 4,233 4,141 4,560 4,641 4,981 4,957 5,216 5,280 5,349 3,411 3,392 3,477 3,363 3,513 3,554 3,549 3,567 4,004 4,155 4,287 403 .............1972—Feb. 424 419 417 462 444 .......................'July 467 531 473 510 536 6,162 22,985 25,220 24,027 24,168 26,017 25,393 25,887 25,825 26,759 26,778 29,121 72 1,264 29,091 2,234 4,490 500 ............ 1973—Jan. 542 750 4,183 7,557 488 1,649 2,872 4,784 823 1,124 90 .............1970—Dec. 188 ) 5 ? 5 9 I 621 855 832 959 812 997 1,043 1,121 1,137 1,053 934 1,220 7,139 7,378 7,868 7,538 8,141 8,943 9,126 10,238 10,616 10,801 11,230 11,703 1,563 1,526 1,429 1,471 1,454 1,809 1,633 1,885 1,935 1,928 1,982 1,964 4,369 4,674 5,134 4,926 5,356 5,903 6,169 6,898 7,,188 7,422 7,862 8,395 1,207 1,178 1,305 1,140 1,330 1,231 1,323 1,455 1,493 1,452 1,386 1,344 151 142 .........................Feb. 128 125 144 136 160 ........................ July 156 156 171 166 168 113,0655 1,137 11,761 1,875 8,503 1,383 167 ............ 1973—Jan. I 5 S 1 5 5 1,335 For notes see p. A-85. 16,205 Location and currency form IN ALL FO R EIG N CO UNTRIES .. .Total, all currencies .Payable in U.S. dollars IN U NITED KINGDOM . . .Total, all currencies .Payable in U.S. dollars IN T H E BAHAMAS . Total, all currencies A 88 INTL. CAPITAL TRANSACTIO N S OF TH E U.S. □ MAY 1973 22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S. GOVERNMENT SECURITIES 23. MATURITY OF EURO-DOLLAR DEPOSITS IN FOREIGN BRANCHES OF U.S. BANKS (Amounts outstanding; in millions o f dollars) (End o f m o n th ; in billions o f dollars) Liabili ties1 Wednesday Wednesday Liab. plus sec.2 1971 1967 M ar. June Sept. Dec. Liabili ties1 3,412 3,166 4,059 4,241 29, 28, 27. 27, M ar. June Sept. Dec. Wednesday 1972 Liabili ties1 M ar. June Sept. Dec. 27............... 26............... 25............... 31 (1/1/69) M ar. June Sept. Dec. 26............... 25........ 24............... 31............... 4,920 6,202 7,104 6,039 1969 9,621 13,269 14,349 12,805 3 1 .. 3 0 .. 29. . 2 9 .. 2,858 1,492 2,475 909 Jan. Feb. M ar. Apr. M ay June July Aug. 26 .. 2 3 .. 2 9 .. 2 6.. 3 1 .. 2 8 .. 2 6 .. 3 0 .. 1,419 1,068 1,532 1,374 1,465 1,443 1,345 1,270 Sept. 6 .. 13.. 2 0 .. 27 .. Oct. Nov. 1970 M ar. June Sept. Dec. 2 5 ............... 24............... 30............... 30............... . 11,885 12,172 9,663 7,676 Dec. Jan. Feb. 2.08 2.11 1.61 3.19 2.30 3.50 16.86 5.92 4.91 3.23 2.64 2.27 .77 .58 .38 .23 .52 .29 12.56 6.74 6.66 3.28 2.65 3.15 .74 .43 .48 .56 .39 .33 14.11 7.89 5.82 2.96 3.39 2.94 .51 .54 .75 .43 .37 .61 1.43 1.56 1.63 1972—Cont. 4,358 4,500 3,578 Dec. 6 . .. 1 3 ... 2 0 ... 2 7 ... 1,618 1,705 1,807 1,406 O vernight............................ C all....................................... Other liabilities, maturing in following calendar months after report date: 2nd................................ 3rd................................. 4th................................. 5 th ................................. 6th................................. 7th................................. 8th................................. 9th................................. 10th................................. 11th................................. 12th................................. M aturities of more than 1 1972 1968 1973 M aturity of liability 1973 Jan. 3 ... 1 0 ... 1 7 ... 2 4 . .. 3 1 ... 1,121 1,625 1,419 1,800 1,413 1,508 1,187 1,497 2,023 Feb. 7 . .. 1 4 ... 2 1 ... 2 8 ... 1,391 694 1,157 790 4 .. 11.. 18.. 2 5.. 1,619 1,544 1,890 1,415 M ar. 7 . .. 1 4 ... 2 1 ... 2 8 ... 1,465 1,419 1,290 1,127 1.. 8 .. 15.. 22.. 29.. 1,387 1,338 1,841 1,464 1,745 Apr. 4. .. 1 1 ... 11. .. 25. .. 1,011 1,203 1,193 1,116 44.22 44.32 47.74 N ote.—Includes interest-bearing U.S. dollar deposits and direct borrowings o f all branches in the Bahamas and o f all other foreign branches for which such deposits and direct borrowings amount to $50 million or more. Details may not add to totals due to rounding. 1 Represents gross liabilities o f reporting banks to their branches in foreign countries. 2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Euro dollar Series and special Export-im port Bank securities held by foreign branches. Beginning July 28, 1971, all o f the securities held were U.S. Treasury Certificates Eurodollar Series. 24. DEPOSITS, U.S. TREAS. SECURITIES, AND GOLD HELD AT F.R. BANKS FOR FOREIGN OFFICIAL ACCOUNT 25. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions o f dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of period Deposits U.S. Treas. securities1 Earmarked gold 1970............... 1971............... 148 294 16,226 43,195 12,926 13,815 1972—A pr.. . M ay. . J u n e .. J u ly ... Aug.. . Sept... Oct— N o v ... D e c.. . 228 157 257 160 192 193 192 188 325 46,836 46,453 47,176 51,522 51,676 50,997 51,821 51,874 50,934 14,315 215,542 15,542 15,542 15,530 15,531 15,531 15,530 15,530 1973—J a n .... F e b .. . M ar... A p r ... 310 455 327 328 50,118 56,914 359,389 358,255 15,526 15,522 15,519 15,513 1 M arketable U.S. Treasury bills, certificates o f in debtedness, notes, and bonds and nonm arketable U.S. Treasury securities payable in dollars and in foreign currencies. 2 Increase results from change in p a r value o f the U.S. dollar on M ay 8, 1972. 3 Includes $15 million increase in M ar. and $160 million increase in Apr. in dollar value o f foreign currency obliga tions revalued to reflect market exchange rates. N ote.—Excludes deposits and U.S. Treas. securities held for international and regional organizations. Ear marked gold is gold held for foreign and international accounts and is not included in the gold stock o f the United States. End of period Total Short Short term term D eposits invest D eposits invest ments 1 ments 1 United King dom Canada 1968..................... 1Q£Q 2 1,638 / 1 , 319 \ 1,491 1,141 1,219 952 1,062 697 87 116 161 150 272 174 183 173 60 76 86 121 979 610 663 372 280 469 534 436 T\aC/>O2 ,. . . l1071 y i l —U / l , 648 \ 1,504 1,092 1,075 203 127 234 234 120 68 577 577 587 443 1972—M ar......... A pr.......... M ay......... June......... July ......... Aug.......... Sept.......... Oct........... N ov.......... Dec. 2 r . . 1,804 1,899 1,935 1,984 2,084 2,279 2,106 2,036 2,085 f l , 963 \ 1,996 1,234 1,315 1,347 1,382 1,517 1,608 1,533 1,475 1,510 1,444 1,575 177 200 206 199 194 217 170 171 178 169 51 271 273 299 312 318 392 359 332 343 307 328 122 112 84 92 55 61 45 57 55 42 42 655 667 713 710 753 761 690 683 657 700 724 667 707 608 572 565 709 604 551 593 485 485 1973—J a n .r ___ F eb ,........ 2,163 2,556 1,681 1,893 71 138 346 394 65 131 799 828 605 964 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. 2 D ata on the two lines for this date differ because o f changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. N ote.—D ata represent the liquid assets abroad o f large nonbanking concerns in the United States. They are a portion o f the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 26 and 27. M AY 1973 □ IN T L . C A P IT A L T R A N S A C T IO N S O F T H E U .S. A 89 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End o f period. Amounts outstanding; in millions o f dollars) Liabilities to foreigners Area and country Claims on foreigners 1972 1971 1971 1972 D e c .r M ar.r France...................................... Germany, Fed, Rep. o f........ Greece...................................... Italy........................................... Netherlands............................. N orway.................................... Portugal.................................... Spain......................................... Sweden...................................... Switzerland.............................. Turkey...................................... United Kingdom .................... Yugoslavia.............................. Other Western Europe......... Eastern Europe....................... 5 65 2 2 136 117 4 103 69 5 16 65 17 104 2 885 3 2 4 5 104 3 2 123 88 5 107 86 6 9 65 16 73 2 929 4 1 5 6 108 5 2 139 104 5 99 65 5 2 70 13 97 3 981 6 2 3 2 82 5 3 145 130 14 108 79 5 3 63 14 119 2 943 5 2 9 2 75 9 4 165 136 24 118 102 9 4 83 12 119 3 932 7 2 3 14 60 15 18 202 192 34 186 68 13 16 124 40 63 9 940 13 13 28 17 45 18 19 196 197 36 181 66 16 23 102 35 60 9 954 10 13 25 16 64 20 19 207 191 36 184 66 17 21 117 37 59 11 985 10 10 22 15 63 19 16 188 200 30 174 71 19 20 130 45 57 8 984 11 11 47 20 62 28 23 221 176 39 193 78 18 21 138 56 79 47 1,042 15 14 42 T otal................................. 1,714 1,733 1,808 2,046 2,023 2,093 2,108 2,310 936 996 899 June Sept. Dec.* Dec. Mar. June Sept. Dec.* Europe: Belgium-Luxembourg........... Denmark.................................. 1,606 1,634 Canada......................................... 181 189 185 183 208 781 1,045 Latin America: Argentina................................. Brazil........................................ Chile.......................................... Colombia................................. Cuba.......................................... Mexico...................................... Panama.................................... Peru........................................... Uruguay................................... Venezuela................................ Other L.A. republics............. Bahamas 1............................... Neth. Antilles and Surinam. Other Latin America............. 18 19 14 7 * 22 5 7 2 16 32 289 3 5 18 18 21 7 « 17 8 8 3 18 27 351 5 12 18 19 16 6 * 18 6 6 3 17 32 352 6 6 16 24 17 6 1 21 5 5 2 17 30 288 9 6 19 35 18 8 1 27 8 5 6 17 35 303 10 7 54 147 46 45 1 151 21 34 5 81 99 366 9 24 48 138 39 40 1 134 19 31 6 77 94 313 8 22 50 152 41 38 1 144 22 32 5 75 106 442 10 18 52 163 33 39 1 154 20 36 7 74 96 519 11 23 59 175 33 41 1 180 19 40 4 89 91 520 12 23 T otal................................. 439 513 506 448 499 1,083 969 1,134 1,226 1,289 Indonesia.................................. Israel......................................... Japan........................................ Korea........................................ Philippines............................... Thailand................................... Other Asia............................... 18 11 26 10 10 173 13 5 3 142 23 11 13 6 9 189 12 8 4 109 25 11 7 5 9 188 16 6 4 104 26 10 7 6 11 223 16 7 5 140 28 12 7 12 12 149 20 15 5 149 41 23 35 28 22 405 68 48 15 144 45 21 28 29 21 442 56 62 18 171 45 23 32 25 17 451 61 67 15 174 51 22 36 32 18 452 57 63 14 172 67 24 32 33 31 456 63 49 15 201 Asia: China, Rep. o f (Taiwan)___ Hong Kong.............................. T otal................................. 412 383 374 451 410 830 894 911 918 972 Africa: E gypt........................................ South Africa............................ Z aire......................................... Other Africa............................ 1 31 1 35 1 26 1 30 1 37 1 31 1 17 2 37 25 7 1 59 9 41 6 99 9 42 5 76 6 46 7 74 7 45 7 64 7 51 5 78 T otal................................. 67 59 71 57 92 155 129 133 122 140 Other countries: Australia.................................. All other.................................. 42 8 50 9 54 11 46 11 47 13 80 17 83 26 97 18 92 18 88 20 50 58 66 57 60 98 109 116 110 108 « * * # 4 2 5 8 5 2,836 2,917 2,929 3,075 4,997 5,171 5,328 5,489 5,722 Total................................. International and regional. . .. Grand total..................... * 2,756 1 Includes Bermuda. N ote .—Reported by exporters, importers, and industrial and c o m - mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. A 90 IN T L . C A P IT A L T R A N S A C T IO N S O F T H E U .S . □ M A Y 1973 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions o f dollars) Claims Liabilities Payable in foreign currencies End o f period Total Payable in dollars Payable in foreign currencies Total Payable in dollars Deposits with banks abroad in reporter’s name Other 1,678 1,608 1,271 1,225 407 382 3,907 3,783 3,292 3,173 422 368 193 241 1,576 1,613 1,797 1,786 2,124 1,185 1,263 1,450 1,399 1,654 391 350 346 387 471 4,014 4,023 3,874 3,710 4,159 3,329 3,316 3,222 3,124 3,532 358 429 386 221 244 327 278 267 365 383 2,387 2,512 2,677 1,843 1,956 2,281 543 557 496 4,457 4,361 4,160 3,868 3,756 3,579 234 301 234 355 305 348 1971—Mar........................ Juner..................... Sept........................ j r / 6 ......................... \ 2,437 2,375 2,564 2,704 2,756 1,975 1,937 2,109 2,229 2,294 462 438 454 475 463 4,515 4,708 4,894 5,185 4,997 3,909 4,057 4,186 4,535 4,459 232 303 383 318 290 374 348 326 333 247 1972—M ar.' ..................... June....................... Sept........................ Dec.P..................... 2,836 2,917 2,929 3,075 2,399 2,444 2,430 2,584 437 472 498 491 5,171 5,328 5,489 5,722 4,551 4,682 4,827 5,087 318 376 432 397 302 270 230 238 Dec......................... 1969— Mar........................ June....................... i / 1 D ec......................... 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause o f changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions o f dollars) (Claims Country or area Total liabilities End o f period Total United Kingdom Other Europe Canada Brazil Mexico Other Latin America Japan Other Asia Africa All other 1968—Sept.......................... D ec........................... 767 1,129 1,625 1,790 43 147 313 306 376 419 198 194 62 73 251 230 126 128 142 171 82 83 32 38 1969—Mar.......................... June......................... Sept.......................... / De 1 ........................... 1 1,285 1,325 1,418 1,725 2,304 1,872 1,952 1,965 2,215 2,363 175 168 167 152 152 342 368 369 433 442 432 447 465 496 562 194 195 179 172 177 75 76 70 73 77 222 216 213 388 420 126 142 143 141 142 191 229 246 249 271 72 72 71 69 75 43 40 42 42 46 1970— Mar.......................... June......................... Sept.......................... D ec........................... 2,358 2,587 2,785 3,102 2,744 2,757 2,885 2,950 159 161 157 146 735 712 720 708 573 580 620 669 181 177 180 183 74 65 63 60 458 477 586 618 158 166 144 140 288 288 284 292 71 76 73 71 47 54 58 64 1971—Mar.......................... June............. ............ Sept.r....................... 3,177 3,172 2,939 3,159 3,120 2,983 2,982 3,019 3,118 3,112 154 151 135 128 128 688 687 672 705 705 670 677 765 761 767 182 180 178 174 174 63 63 60 60 60 615 625 597 652 653 161 138 133 141 136 302 312 319 327 319 77 75 85 86 86 72 74 75 85 84 3,076 3,308 3,479 3,625 3,184 3,193 3,226 3,319 129 108 128 137 713 707 690 709 787 797 809 833 175 180 176 178 59 57 62 58 665 668 659 668 137 136 132 152 353 361 383 389 81 86 93 87 85 93 96 109 / \ 1972—Mar.r....................... Juner....................... Sept........................... Dec.P....................... * Data on the two lines shown for this date differ because o f changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. M A Y 1973 □ E X C H A N G E R A TE S A 91 FOREIGN EXCHANGE RATES (In cents per unit o f foreign currency) Australia (dollar) Austria (schilling) Belgium (franc) Canada (dollar) Ceylon (rupee) Denmark (krone) Finland (markka) France (franc) 1968........................................................................................ 1969........................................................................................ 111.25 111.10 111.36 113.61 119.23 3.8675 3.8654 3.8659 4.0009 4.3228 2.0026 1.9942 2.0139 2.0598 2.2716 92.801 92.855 95.802 99.021 100.937 16.678 16.741 16.774 16.800 16.057 13.362 13.299 13.334 13.508 14.384 23.761 23.774 23.742 23.758 24.022 20.191 19.302 18.087 18.148 19.825 1972—Apr............................................................................. May............................................................................ July.......................................................................... .. Aug............................................................................ Sept............................................................................ Oct.............................................................................. Nov............................................................................ D ec............................................................................. 119.10 119.10 119.10 119.10 119.11 119.10 119.07 119.09 120.74 4.3236 4.3277 4.3421 4.3674 4.3470 4.3354 4.3102 4.3064 4.3172 -2.2672 2.2737 2.2758 2.2814 2.2795 2.2742 2.2640 2.2685 2.2670 100.430 101.120 102.092 101.630 101.789 101.730 101.756 101.279 100.326 16.650 16.650 16.772 15.878 15.611 15.600 15.605 15.026 14.936 14.301 14.332 14.336 14.368 14.438 14.388 14.453 14.510 14.601 24.088 24.084 24.136 24.035 24.020 24.015 23.562 24.022 24.000 19.852 19.944 19.937 19.990 19.986 19.977 19.906 19.839 19.657 1973—Jan.............................................................................. Feb............................................................................. Mar............................................................................ Apr............................................................................. 127.16 135.46 141.29 141.50 4.3203 4.8582 4.8759 4.8380 2.2665 2.3981 2.5378 2.4895 100.071 100.440 100.333 99.928 14.904 15.407 15.774 15.777 14.536 15.386 16.275 16.099 23.986 24.728 25.628 25.872 19.671 20.987 22.191 21.959 Period Germany (Deutsche mark) India (rupee) Ireland (pound) Italy (lira) Japan (yen) Malaysia (dollar) Mexico (peso) Neth erlands (guilder) 1972................................................ ....................................... 25.048 25.491 27.424 28.768 31.364 13.269 13.230 13.233 13.338 13.246 239.35 239.01 239.59 244.42 250.08 .16042 .15940 .15945 .16174 .17132 .27735 .27903 .27921 .28779 .32995 32.591 32.623 32.396 32.989 35.610 8.0056 8.0056 8.0056 8.0056 8.0000 27.626 27.592 27.651 28.650 31.153 1972—Apr............................................................................. May............................................................................ June........................................................................... July............................................................................ Aug............................................................................. Sept............................................................................ Oct.............................................................................. N ov............................................................................ D ec............................................................................. 31.468 31.454 31.560 31.634 31.382 31.318 31.184 31.215 31.262 13.735 13.763 13.754 13.072 13.030 13.016 12.806 12.540 12.467 261.02 261.24 256.91 244.47 245.02 244.10 239.48 235.05 234.48 .17138 .17175 .17142 .17208 .17203 .17199 .17145 .17109 .17146 .32943 .32854 .33070 .33219 .33204 .33209 .33221 .33224 .33196 35.406 35.446 35.475 35.918 36.026 36.110 36.063 36.124 35.531 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 31.142 31.124 31.296 31.424 31.158 30.969 30.869 30.964 30.962 1973—Jan.............................................................................. Feb............................................................................. Mar............................................................................ Apr............................................................................. 31.288 33.273 35.548 35.252 12.494 12.910 13.260 13.255 235.62 242.75 247.24 248.37 .17079 .17421 .17604 .16971 .33136 .36041 .38190 .37666 35.523 37.679 39.922 40.307 8.0000 8.0000 8.0000 8.0000 31.084 33.119 34.334 33.890 Period New Zealand (dollar) Norway (krone) Portugal (escudo) South Africa (rand) Spain (peseta) Sweden (krona) Switz erland (franc) United King dom (pound) 1969........................................................................................ 1970........................................................................................ 1971........................................................................................ 1972........................................................................................ 111.37 111.21 111.48 113.71 119.35 14.000 13.997 13.992 14.205 15.180 3.4864 3.5013 3.4978 3.5456 3.7023 139.10 138.90 139.24 140.29 129.43 1.4272 1.4266 1.4280 1.4383 1.5559 19.349 19.342 19.282 19.592 21.022 23.169 23.186 23.199 24.325 26.193 239.35 239.01 239.59 244.42 250.08 1972—Apr............................................................................. May............................................................................ June........................................................................... July............................................................................ Aug............................................................................ Sept............................................................................ Oct.............................................................................. Nov............................................................................ D ec............................................................................. 119.36 119.41 119.13 119.31 119.45 119.33 119.21 119.45 119.53 15.151 15.214 15.303 15.367 15.335 15.209 15.141 15.144 15.187 3.6950 3.7075 3.7083 3.7178 3.7211 3.7221 3.7080 3.7140 3.7248 133.32 133.82 132.63 125.26 125.28 125.26 124.47 127.52 127.57 1.5487 1.5492 1.5509 1.5754 1.5752 1.5754 1.5750 1.5753 1.5753 20.907 21.032 21.101 21.134 21.160 21.146 21.078 21.076 21.080 25.920 25.903 26.320 26.561 26.449 26.403 26.332 26.346 26.526 261.02 261.24 256.91 244.47 245.02 244.10 239.48 235.05 234.48 1973—Jan.............................................................................. Feb............................................................................. Mar............................................................................ Apr............................................................................. 119.52 126.87 132.21 132.99 15.128 16.038 16.954 16.428 3.7280 3.8562 4.1005 3.9563 127.55 134.91 141.43 141.70 1.5755 1.6355 1.7183 1.7217 21.092 21.935 22.582 22.161 26.820 29.326 31.084 30.821 235.62 242.75 247.24 248.37 Period 1968........................................................................................ 1969........................................................................................ N ote .—Averages o f certified noon buying rates in New York for cable transfers. For description o f rates and back data, see “International Fi nance,” Section 15 o f Supplement to Banking and Monetary Statistics, 1962. A 92 C E N T R A L B A N K R A TE S □ M AY 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Apr. 30, 1972 1972 Country Per cent Month effective 18.0 5 .0 4 .0 18.0 4.75 Feb. Jan. Mar. Feb. Oct. 1972 1970 1972 1972 1971 C eylon...................................... Chile.......................................... China, Rep. o f (Taiwan).. . . Colombia.................................. Costa Rica............................... 6.5 7 .0 9.25 Jan. Jan. May May June 1970 1972 1971 1963 1966 Denmark. . . Ecuador.. . . Egypt........... El Salvador. Ethiopia.. . . 7 .0 Jan. Jan. May Aug. Aug. 1972 1970 1962 1964 1970 Jan. Apr. Feb. July Sept. 1972 1972 1972 1971 1969 7 .0 Feb. Jan. Jan. May Oct. 1966 1966 1971 1969 1969 4.81 4 .0 5 .0 4.75 13.0 Dec. Apr. Dec. Dec. Jan. 1971 1972 1971 1971 1972 M exico............ M orocco......... Netherlands.., New Zealand. Nigeria............ 4.5 3.50 4 .0 June Nov. Mar. Mar. June 1942 1951 1972 1972 1968 Norway...................... Pakistan..................... Peru............................ Philippine Republic. Portugal..................... 4.5 5 .0 9.5 3.75 Sept. June Nov. June Feb. 1969 1965 1959 1969 1971 6.5 5 .0 5 .0 3.75 5 .0 Mar. Oct. Nov. Sept. Oct. 1971 1971 1971 1969 1959 Sept. Sept. Sept. Oct. Sept. 1966 1970 1971 1970 1970 Argentina. A ustria.. . . Belgium. . . Brazil........ C anada.. ., 8.0 5 .0 8.0 5 .0 4 .0 6.50 Finland.............................. France................................ Germany, Fed. Rep. o f .. Ghana................................ Greece................................ 7.75 5.75 3 .0 Honduras. Iceland.. . , India.......... Indonesia., Iran.......... . 4 .0 5.25 Ireland.. Italy. . . . Jamaica. Japan. . . K orea... South Africa. Spain............. Sweden.......... Switzerland.. Thailand. . . . Tunisia................... Turkey................... United Kingdom. Venezuela............. Vietnam................. 8.0 6.5 6.0 6.0 6.0 4.50 10.0 5 .0 9 .0 5 .0 5 .0 18.0 May June July Aug. Sept. Oct. Nov. Dec. 5.5 4.5 5 .0 Jan. Feb. Mar. Apr. Rate as of Apr. 30, 1973 18.0 5 .5 5.0 5.25 20.0 5.25 6.5 7 .0 9.25 8.0 5 .0 8.0 7 .0 7.0 8.0 5 .0 4 .0 6.50 3 .5 7.5 4 .5 7.75 7.5 5 .0 5 .0 8.0 6.5 4 .0 5.25 6.0 6.0 7 .0 5.19 6.19 7.19 7.44 6.0 7.0 4.25 5 .0 7.44 4 .0 7.0 5 .0 13.0 4.5 3.50 4 .0 4 .0 3 .0 6.0 4.50 4.5 6.0 6.0 9.5 10.0 5.5 4 .0 5 .0 6.0 4.50 8.0 7.50 9 .0 8.75 4 .0 5.5 5 .0 5.0 4.50 5 .0 6.0 N ote .—Rates shown are mainly those at which the central bank either discounts or makes advances against eligible commercial paper and/or govt, securities for commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion o f its credit operations. Other rates for some o f these countries follow : Argentina— 3 and 5 per cent for certain rural and industrial paper, de pending on type o f transaction; Brazil—8 per cent for secured paper and 4 per cent for certain agricultural paper; Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent for loans to make up reserve deficiencies. Colombia—5 per cent for warehouse receipts covering approved lists of products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent for rediscounts in excess o f an individual bank’s quota; Costa Rica—5 per cent for paper related to commercial transactions (rate shown is for agricultural and industrial paper); Ecuador—5 per cent for special advances and for bank acceptances for agricultural purposes, 7 per cent for bank acceptances for industrial purposes, and 10 per cent for advances to cover shortages in legal reserves; Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. Honduras—Rate shown is for advances only. Indonesia—Various rates depending on type o f paper, collateral, com modity involved, etc.; Japan—Penalty rates (exceeding the basic rate shown) for borrowings from the central bank in excess o f an individual bank’s quota; 1973 5 .0 8.0 18.75 5 .0 18.0 Morocco—Various rates from 3 per cent to 4.6 per cent depending on type o f paper, maturity, collateral, guarantee, etc. Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc tion, import substitution industries and manufacture of exports; 8 per cent for other agricultural, industrial and mining paper; Philippines—6 per cent for financing the production, importation, and dis tribution of rice and corn and 7.75 per cent for credits to enterprises en gaged in export activities. Preferential rates are also granted on credits to rural banks; and t United Kingdom—On Oct. 9, 1972, the Bank o f England announced: “With effect from Friday October 13th the Bank’s minimum lending rate will until further notice be the average rate of discount for Treasury bills established at the most recent tender plus one half percent rounded to the nearest one quarter percent above. Although the rate will therefore be automatically determined by this formula it will for convenience be made known each Friday afternoon concurrently with and in the same manner as the results o f the Treasury bill tender. The regular weekly bank rate announcement will be discontinued from now on.” Therefore, the mini mum lending rate as of last Friday of the month will be carried in place o f Bank rate. Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi per cent for advances against government bonds, and 5 l/ i per cent for rediscounts of certain industrial paper and on advances against promissory notes or securities of first-class Venezuelan companies. Vietnam— 10 per cent for export paper; treasury bonds are rediscounted at a rate 4 percentage points above the rate carried by the bond; and there is a penalty rate of 24 per cent for banks whose loans exceed quan titative ceilings. MAY 1973 o OPEN M AR KET R A TES; A R B ITR A G E A 93 OPEN MARKET RATES (Per cent per annum) Canada Month Prime Treasury Day-toTreasury bank bills, bills, day bills, 3 months 3 months1 money2 3 months3 Germany, Fed. Rep. o f France United Kingdom Netherlands Switzer land Day-today money Clearing banks’ deposit rates4 Day-today moneys Treasury bills, 60-90 days 6 Day-today money7 Treasury bills, 3 months Day-today money Private discount rate 1971......................... 1972......................... 3.62 3.55 3.76 3.65 6.41 6.06 5.57 5.02 4.93 4.83 3.84 3.84 5.84 4.54 3.04 6.10 4.30 4.34 2.15 3.76 1.97 5.24 4.81 1972—Apr............... M ay............. June............. July.............. Aug.............. Oct............... Nov.............. D ec.............. 3.65 3.67 3.61 3.48 3.47 3.57 3.57 3.61 3.66 3.68 3.73 3.64 3.45 3.54 3.52 3.64 3.71 3.71 4.62 4.83 5.86 6.82 6.71 7.18 7.34 7.28 8.08 4 .30 4.27 5.21 5.60 5.79 6.44 6.74 6.88 7.76 3.82 4.56 3.92 4.99 5.13 5.27 5.47 5.70 6.23 2.50 2.50 2.93 4.18 5.25 5.25 5.25 5.25 5.57 4.81 5.32 3.81 3.78 3.76 3.89 5.16 6.33 7.32 2.75 2.75 2.75 2.75 2.75 2.75 3.25 3.75 4.25 3.77 2.95 2.65 2.24 4.48 4.83 6.07 5.71 6.69 1.84 1.98 1.90 1.09 .70 1.11 1.95 3.13 3.12 .70 3.03 1.53 .86 .60 .54 2.61 3.31 3.20 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 1973—Jan............... Feb............... Mar.............. Apr.............. 3.79 3.91 4.28 4.69 3.72 3.93 4.21 4.53 8.76 9.3 4 9.76 8.64 8.49 8.14 8.16 7.87 7.66 8.31 7.52 7 .20 6.55 7 .30 7.50 7.25 7.23 7.71 4.75 5.58 2.18 11.37 3.16 2.33 1.53 2.78 1.55 .61 5.00 5.00 1 Based on average yield o f weekly tenders during month. 2 Based on weekly averages o f daily closing rates. 3 Data for 1968 through Sept. 1971 are for bankers* acceptances, 3 months. 4 Data for 1968 through Sept. 1971 are for bankers’ allowance on deposits. 5 Rate shown is on private securities. 6 Rate in effect at end o f month. 7 Monthly averages based on daily quotations. 8 Bill rates in table are buying rates for prime paper. N o t e . —For description and back data, see “International Finance,* Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Date Treasury bill rates United Kingdom (adj. to U.S. quotation basis) United States Spread (favor of London) Premium ( + ) or discount ( - ) on forward pound Net incentive (favor of London) Canada As quoted in Canada Adj. to U.S. quotation basis United States Spread (favor of Canada) Premium ( + ) or discount ( - ) on forward Canadian dollars Net incentive (favor of Canada) 1972 Nov. 3 ............... 10............... 17............... 2 4 ............... 6.74 6.77 6.76 6.84 4.63 4 .64 4.69 4.77 2.16 2.13 2.07 2.07 - 2 .7 2 -3 .0 7 - 2 .5 9 -3 .0 2 -.5 6 -.9 4 -.5 2 - .9 5 3.57 3.58 3.61 3.61 3.47 3.50 3.53 3.53 4.63 4.64 4.69 4.77 -1 .1 4 - 1 .1 4 -1 .1 6 -1 .2 4 - .0 8 .10 .12 .16 -1 .2 2 - 1 .0 4 -1 .0 4 -1 .0 8 Dec. 1 ............... 8 ............... 15............... 2 2 ............... 2 9 ............... 7.05 7.37 7.33 8.32 8.19 4.82 4.98 4 .97 5.09 5.05 2.23 2.39 2.36 3.23 3.14 - 2 .9 3 - 3 .0 3 -3 .4 9 -3 .5 8 -3 .5 4 - .7 0 - .6 4 - 1 .1 3 -.3 5 - .4 0 3.70 3.70 3.67 3.61 3.66 3.62 3.62 3.59 3.53 3.58 4.82 4.98 4.97 5.09 5.05 -1 .2 0 -1 .3 6 - 1 .3 8 -1 .5 6 -1 .4 7 .12 .26 .24 .42 .44 -1 .0 8 -1 .1 0 -1 .1 4 -1 .1 4 - 1 .0 3 1973 Jan. 5 ............... 12............... 19............... 2 6 ............... 8.17 8.15 8.08 8.01 5.05 5.19 5.42 5.67 3.12 2.96 2.66 2 .34 -3 .2 9 -3 .5 0 - 3 .6 6 - 3 .6 5 -.1 7 -.5 4 -1 .0 0 - 1 .3 1 3.72 3.75 3.78 3.89 3.64 3.66 3.69 3.80 5.05 5.19 5.42 5.67 - 1 .4 1 - 1 .5 3 -1 .7 3 - 1 .8 7 .52 .68 .96 1.08 -.8 9 -.8 5 -.7 7 - .7 9 Feb. 2 ............... 9 ............... 16............... 2 3 ............... 8.00 7.98 7.96 7.95 5.69 5.30 5.31 5.44 2.31 2.68 2.65 2.51 -4 .0 4 -3 .0 0 -3 .7 8 - 3 .3 9 -1 .7 3 -.3 2 - 1 .1 3 - .8 8 3.93 3.92 3.88 3.91 3.84 3.83 3.79 3.82 5.69 5.30 5.31 5.44 - 1 .8 5 -1 .4 7 -1 .5 2 -1 .6 2 1.36 1.48 1.74 1.78 -.4 9 .01 .22 .66 Mar. 2 ............... 9 ............... 1 6............... 2 3 ............... 30 ............... 8.01 8.11 7.9 9 7.87 7.83 5.68 5.76 6.04 6.21 6.22 2.33 2.35 1.95 1.66 1.61 - 2 .8 2 - 3 .7 8 - 3 .7 3 -3 .3 2 - 2 .7 7 - .4 9 - 1 .4 3 - 1 .7 8 - 1 .6 6 - 1 .1 6 4.05 4.15 4.28 4.42 4 .50 3.96 4.05 4.18 4.31 4.39 5.68 5.76 6.04 6.21 6.22 - 1 .7 2 -1 .7 1 -1 .8 6 - 1 .9 0 -1 .8 3 2.06 2.35 2.31 2.31 r2.52 .34 .64 .45 .41 r.69 Apr. 6 ............... 13............... 2 0 ............... 27 i ............ 7.77 7.35 6.3 4 6.12 1.43 1.23 -2 .5 7 - 2 .1 5 - 1 .1 4 -.9 2 4.48 4.75 4.37 4.63 6.34 6.12 - 1 .9 7 -1 .4 9 2.16 1.48 .19 -.0 1 7.56 6.13 1.43 -1 .8 6 -.4 3 4.86 4.82 6.13 -1 .3 1 1.68 .37 i N o data because o f holiday on Good Friday. N o t e . — Treasury bills: All rates are on the latest issue o f 91-day bills. U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. rates are Friday opening market offer rates in London. Premium or discount on forward pound and on forward Canadian dollar: Rates per annum computed on basis o f midpoint quotations (between bid and offer) at 11 a.m. Friday in New York for both spot and forward pound sterling and for both spot and forward Canadian dollars. All series: Based on quotations reported to F.R. Bank o f New York by market sources. For description of series and for back figures, see Oct. 1964 B u l l e t i n , pp. 1241-60. For description o f adjustments to U.K. and Canadian Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, Oct. 1964 B u l l e t i n . GOLD RESERVES □ MAY 1973 A 94 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions o f dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) End of period 1965. 1966. 1967. 1968. 1969. 1970. 1971. 1972—Mar.. Apr.. May. June. July.. Aug.. Sept.. O ct... N ov.. D ec.. Esti mated total world i Intl. Mone tary Fund United States Esti mated rest o f world geria Argen tina 243,230 43,185 41,600 40,905 41,015 41,275 41,180 31,869 2,652 2,682 2,288 2,310 4,339 4,732 13,806 13,235 12,065 10,892 11,859 11,072 10,206 27,285 27,300 26,855 27,725 26,845 25,865 26,240 6 6 155 205 205 191 192 66 84 84 109 135 140 90 223 224 231 257 263 239 259 700 701 701 714 715 714 729 41,260 5,304 5,331 5.761 5.761 5.761 5,765 5.777 5.777 5.778 5.830 9,662 26,295 9,662 10.490 10.490 28,585 10.490 10,488 10.487 28,625 10.487 10.487 10.487 *28^650 192 192 208 208 208 208 208 208 208 208 70 70 76 130 130 130 152 152 152 152 259 259 282 283 285 283 283 282 282 281 5.830 5.830 5.830 10.487 10.487 10.487 208 208 208 152 Fin land 44,835 44,896' *44,965 1973—J a n ... . F eb .... Mar.p . End of period China, Rep. o f (Taiwan) Co lombia D en mark Egypt Aus tralia Aus tria Bel gium Brazil Burma Canada 1,558 1,525 1,480 1,524 1,520 1,470 1,544 63 45 45 45 45 45 46 84 84 84 84 84 63 1,151 1,046 1,015 863 872 791 792 729 729 791 792 793 792 792 792 792 792 1,544 1,544 1,682 1,682 1,682 1,672 1,648 1,636 1,642 1,638 46 46 50 50 50 50 50 50 50 50 20 20 792 767 836 834 834 834 834 834 834 834 281 281 282 793 793 793 1,621 1,621 1,621 France Ger many, Fed. Rep. of Greece India 22 18 16 16 16 16 16 16 12 12 Iran Iraq Chile 44 45 45 46 47 47 47 834 834 834 Ire land Israel 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 55 62 81 81 82 82 80 35 26 31 31 26 17 14 97 108 107 114 89 64 64 139 93 93 93 93 85 85 84 45 45 45 45 29 49 4,706 5,238 5,234 3,877 3,547 3,532 3,523 4,410 4,292 4,228 4,539 4,079 3,980 4,077 78 120 130 140 130 117 98 281 243 243 243 243 243 243 146 130 144 158 158 131 131 110 106 115 193 193 144 144 21 23 25 79 39 16 16 56 46 46 46 46 43 43 1972—Mar................. Apr.................. May................ 80 80 87 87 87 87 87 87 87 87 14 14 15 16 16 16 16 16 16 16 64 64 69 69 69 69 69 69 69 69 85 85 92 92 92 92 92 92 92 92 49 49 53 53 53 53 53 53 53 53 3,523 3,523 3,826 3,826 3,826 3,826 3,826 3,826 3,826 3,826 4,077 4,077 4,437 4,437 4,437 4,437 4,436 4,436 4,436 4,459 98 98 132 132 132 132 132 132 132 133 243 243 264 264 264 264 264 264 264 264 131 131 142 142 142 142 142 142 142 142 144 144 156 156 156 156 156 156 156 156 16 16 17 17 17 17 17 17 17 17 43 43 47 47 47 47 43 42 44 43 87 87 16 16 16 69 69 69 92 53 53 53 3,834 3*834 3,834 4,344 4*344 4*344 133 133 142 142 142 156 156 156 17 17 41 41 July................. Aug................. Sept................. Oct.................. N ov................. D ec................. 1973—Jan................... Feb.................. Mar.p............. End of period Italy 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 2,404 2,414 2,400 2,923 2,956 2,887 2,884 328 329 338 356 413 532 679 52 67 136 122 86 86 87 182 193 193 288 288 288 322 1972—Mar................ Apr................. May................ June................ July................. Aug................. Sept................. Oct.................. N ov................. D ec................. 2,884 2,884 3,131 3,131 3,131 3,131 3,130 3,130 3,130 3,130 735 735 801 801 801 801 801 801 801 801 87 89 104 98 94 94 94 94 94 94 1973—j an.................. Feb.................. Mar.p............. 3,134 3,134 3,134 801 801 801 94 94 94 For notes see end o f table. Japan Kuwait Leb anon Philip pines Malay sia Mexi co Moroc co 68 68 68 85 85 85 85 2 1 31 66 63 48 58 158 109 166 165 169 176 184 21 21 21 21 21 21 21 1,756 1,730 1,711 1,697 1,720 1,787 1,909 31 18 18 24 25 23 33 53 53 53 54 54 54 55 67 65 20 20 25 40 40 38 44 60 62 45 56 67 322 322 350 350 350 350 350 350 350 350 85 85 93 93 93 93 93 93 93 93 58 58 63 63 63 63 63 63 63 63 177 174 188 188 188 188 188 188 188 188 21 21 23 23 23 23 23 23 23 23 1,908 1,908 2,079 2,079 2,079 2,079 2,078 2,078 2,059 2,059 33 33 36 36 36 36 36 36 36 37 55 55 60 60 60 60 60 60 60 60 40 40 43 41 41 41 41 41 41 41 68 68 73 72 72 72 72 72 71 71 350 350 307 93 93 63 63 23 23 2,059 2*059 2,059 37 37 37 60 60 41 41 71 71 Libya Nether lands Nor way Paki stan Peru M AY 1973 o G O LD R ESER V ES A N D P R O D U C T IO N A 95 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions o f dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) End o f period Turkey United King dom 96 92 92 92 92 92 82 116 102 97 97 117 126 130 2,265 1,940 1,291 1,474 1,471 1,349 775 2,909 2,909 3,158 3,158 3,158 3,158 3,158 3,158 3,158 3,158 82 82 89 89 89 89 89 89 89 89 129 127 127 122 122 122 122 122 122 136 751 751 816 816 816 800 800 800 800 800 3,162 3,162 3,162 89 89 89 136 136 136 Portu gal Saudi Arabia South Africa 1965................................ 1966................................ 1967................................ 1968................................ 1969................................. 1970................................. 1971................................ 576 643 699 856 876 902 921 73 69 69 119 119 119 119 425 637 583 1,243 1,115 666 410 810 785 785 785 784 498 498 202 203 203 225 226 200 200 3,042 2,842 3,089 2,624 2,642 2,732 2,909 1972— Mar..................... July..................... Aug..................... Sept..................... Oct...................... N ov..................... Dec...................... 925 925 1,004 1,004 1,004 1,021 1,021 1,021 1,021 1,021 119 119 129 129 129 129 129 129 129 129 405 412 471 507 543 580 601 636 662 681 498 498 541 541 541 541 541 541 541 541 200 200 217 217 217 217 217 217 217 217 1973—jan...................... Feb...................... M ar.*................. 1,022 1,022 1,022 129 131 131 706 711 714 542 220 220 220 Sweden Spain Switzer land 1 Includes reported or estimated gold holdings o f international and regional organizations, central banks and govts, o f countries listed in this table, and also o f a number not shown separately here, and gold to be distributed by the Tripartite Commission for the Restitution o f Monetary Gold; excludes holdings o f the U.S.S.R., other Eastern European coun tries, and China Mainland. The figures included for the Bank for International Settlements are the Bank’s gold assets net o f gold deposit liabilities. This procedure avoids the overstatement o f total world gold reserves since most o f the gold deposited with the BIS is included in the gold reserves o f individual countries. 2 Adjusted to include gold subscription payments to the IMF made by Thai land Uru guay Bank for Intl. Settle ments 4 Vene zuela Yugo slavia 155 146 140 133 165 162 148 401 401 401 403 403 384 391 19 21 22 50 51 52 51 -5 5 8 -4 2 4 -6 2 4 -3 4 9 -4 8 0 -2 8 2 310 156 156 169 169 169 169 169 169 169 391 391 425 425 425 425 425 425 425 425 51 51 56 56 56 56 56 56 56 56 354 347 365 304 276 276 267 267 255 218 425 425 425 56 56 56 218 214 214 some member countries in anticipation o f increase in Fund quotas, except those matched by gold mitigation deposits with the United States and United Kingdom; adjustment is $270 million. 3 Excludes gold subscription payments made by some member countries in anticipation o f increase in Fund quotas: for most o f these countries the increased quotas became effective in Feb. 1966. 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. N o t e .— For back figures and description o f the data in this and the following tables on gold (except production), see “Gold,” Section 14 o f Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions o f dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa Period 1966................................ 1967................................ 1968................................ 1969................................ 1970................................ 1971*.............................. 1972*............................. World produc tion 1 1.445.0 1 .410.0 1.420.0 1.420.0 1 .4 5 0 .0 North and South America South Africa Ghana Zaire United States Can ada Mex ico 1,080.8 1.068.7 1,088.0 1.090.7 1 ,128.0 1 .098.7 1.109.8 24.0 26.7 25 .4 2 4.8 24.6 24.4 5 .6 5 .4 5 .9 6 .0 6 .2 6 .0 63.1 5 3.4 53.9 60.1 63.5 52.3 54.3 114.6 103.7 94.1 89.1 84.3 79.1 77.2 7.5 5.8 6 .2 6.3 6 .9 5.3 6.4 6.6 7.5 6.8 6 .2 6 .4 5.9 6.3 6.3 6 .0 6.3 .4 .5 1972— Feb..................... Mar................... Apr.................... M ay................... June................... July................... Aug.................... Sept................... Oct..................... N ov................... D ec.................... 88.2 91.8 93.2 94 .4 94.3 9 4.4 94.1 93.9 9 4 .2 91.5 84.3 1973—Jan..................... Feb..................... 88.2 86.5 21.2 21.0 1 Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. Asia Other Nica Colom India bia ragua Japan Philip pines Aus tralia All other1 9 .8 9 .0 8 .4 7 .7 7.1 6 .6 7.1 4 .2 3 .4 4 .0 3.4 3.7 4.1 19.4 23.7 21.5 23.7 24.8 27.0 15.8 17.2 18.5 20.0 21.1 22.2 32.1 28 .4 27.6 24.5 21.7 23.5 62.9 59.4 61.6 6 0.0 54.1 .6 .5 .6 .6 .7 .5 .6 .6 .5 .7 .5 .3 .3 .3 .4 .3 .4 .3 .3 .3 2.5 2 .6 2 .4 2 .4 2.5 2.8 2.8 3.1 2.7 5.2 5 .2 4 .9 3 .7 4 .0 3.7 6.2 6.1 2 Quarterly data. 2 .5 2 .0 2 .4 2.3 2 .5 2 .6 2 .8 A 96 INSURED INCOME, EXPENSES, AND DIVIDENDS OF INSURED COMMERCIAL BANKS, 1972 (Income, etc. in thousands, and asset and liability items in millions, o f dollars) New York City City o f Chicago Other Operating income—Total.................................................................. L oans: Interest and fees........................................................................ Federal funds sold and securities purchased with resale agreement............................................................................ Securities—Interest and dividends:1 U.S. Treasury securities........................................................... Other U.S. Govt, securities (agencies and corporations) Obligations o f States and political subdivisions................. All other securities.................................................................... Trust department income........................................................... Service charges on deposit accounts........................................ Other charges, fees, etc................................................................. Other operating incom e: On trading account (net)......................................................... Other............................................................................................. 40,055,267 8,720,739 31,334,528 17,956,075 4,991,944 1,284,801 11,679,329 13,378,454 25,441,739 5,444,681 19,997,058 11,593,657 3,180,040 804,364 7,609,253 8,403,401 1,022,955 229,087 793,868 483,508 48,486 44,813 390,208 310,361 3,375,749 1,142,498 3,488,847 318,675 1,366,160 1,255,423 1,078,369 963,710 412,665 779,919 84,854 97,270 351,242 214,809 2,412,040 729,834 2,708,928 233,821 1,268,890 904,182 863,560 1,094,181 201,313 1,377,236 116,557 977,733 415,853 546,881 260,061 30,766 340,937 34,147 373,959 73,917 107,436 77,316 10,216 121,566 9,088 96,909 7,016 28,489 756,804 160,332 914,733 73,322 506,865 334,921 410,956 1,317,859 528,520 1,331,692 117,264 291,157 488,328 316,679 257,174 1,307,677 3,006 139,496 254,168 1,168,181 237,850 911,307 103,081 439,116 22,277 62,748 112,492 409,443 16,318 256,874 Operating expenses—T otal.............................................................. Salaries and wages o f officers and employees......................... Officer and employee benefits..................................................... Interest paid o n : Time and savings deposits....................................................... Federal funds purchased and securities sold with re purchase agreement.......................................................... Other borrowed m oney........................................................... Capital notes and debentures................................................. Occupancy expense o f bank premises, n et.............................. Furniture, equipment, etc............................................................. Provision for loan losses.............................................................. Other operating expenses............................................................. 32,826,740 7,713,325 1,323,050 7,187,850 1,693,028 250,021 25,638,890 6,020,297 1,073,029 14,615,559 3,490,588 654,264 3,915,031 989,136 217,035 1,021,092 206,552 41,313 9,679,436 2,294,900 395,916 11,023,331 2,529,709 418,765 13,776,156 3,263,234 10,512,922 5,473,758 1,261,787 418,367 3,793,604 5,039,164 1,424,763 114,613 212,220 1,573,976 1,082,486 962,808 4,643,343 37,496 12,549 28,672 314,572 234,804 195,941 1,157,533 1,387,267 102,064 183,548 1,259,404 847,681 766,868 3,485,811 1,221,944 84,143 143,037 751,610 451,985 487,539 1,856,691 361,172 21,210 49,503 250,563 109,458 158,330 496,838 128,534 11,650 3,563 49,968 25,628 35,617 99,900 732,238 51,284 89,970 451,080 316,898 293,592 1,259,953 165,323 17,921 40,511 507,794 395,696 279,329 1,629,120 Income before income taxes and securities gains or losses........... Applicable income taxes.............................................................. Income before securities gains or losses.................................. Net securities gains or losses ( —) after taxes......................... Extraordinary charges ( —) or credits after taxes................... Less minority interest in consolidated subsidiaries............... 7,228,527 1,707,342 5,521,185 90,061 17,899 663 1,532,889 351,732 1,181,156 43,586 4,151 294 5,695,638 1,355,609 4,340,029 46,475 13,748 370 3,340,515 867,180 2,473,336 -1 1 ,3 3 6 11,303 306 1,076,913 296,216 780,697 -1 ,5 8 6 9,310 263,709 58,377 205,332 - 4 ,3 7 0 -6 3 1,999,893 512,587 1,487,306 - 5 ,3 7 8 2,057 306 2,355,123 488,430 1,866,693 57,812 2,445 63 Net income............................................................................................ 5,628,482 1,228,600 4,399,882 2,472,995 788,421 200,897 1,483,678 1,926,886 Cash dividends declared: On common sto ck ......................................................................... On preferred sto ck ........................................................................ 2,186,666 3,813 350,317 954 1,836,349 2,859 1,148,928 1,923 308,967 920 121,907 718,055 1,003 687,421 936 1,707,342 351,732 1,355,609 867,180 296,216 58,377 512,587 488,430 1,243 -2 1 ,6 0 9 275,850 183,149 92,701 - 4 ,0 4 4 -1 1 ,1 6 3 43,170 42,716 454 20,753 -6 0 ,6 0 1 472,739 375,565 97,174 38,695 -5 9 ,3 3 9 467,786 397,280 70,506 Memoranda items: Income taxes applicable to 1972 operating income............... Tax effect o f : Net securities gains or losses ( —), etc.................................. Transfers—Capital accounts to IRS loan loss reserves 2. Total provision for income taxes, 1972...................................... Federal......................................................................................... State and local............................................................................ 78,271 -1 8 7 ,4 6 5 1,598,148 1,288,649 309,499 21,624 -3 4 ,7 5 4 338,603 289,939 48,664 56,647 -1 5 2 ,7 1 1 1,259,545 998,710 260,835 All other 17,952 -9 3 ,3 7 2 791,759 601,430 190,329 1973 Total BANKS, 1972 □ MAY All member banks MEMBER Insured nonmember banks AND Reserve city All insured banks Item Memoranda items (cont.): Occupancy expense o f bank premises, gross........................... Rental income from bank premises...................................... Net security gains or losses ( —) before income taxes........... Extraordinary charges ( —) or credits before income ta x .. . Reserves for losses on loans:3 Balance at beginning o f yea r................................................... Additions due to mergers and absorptions..................... Recoveries credited to reserves.......................................... Transfers to reserves............................................................. Losses charged to reserves.................................................. Transfers from reserves..................................................... Balance at end o f y ea r.............................................................. Net loan losses ( —) or recoveries4 .......................................... Reserves on securities: Balance at beginning o f yea r................................................... Additions due to mergers and absorptions..................... Recoveries credited to reserves.......................................... Transfers to reserves............................................................ Losses charged to reserves................................................. Transfers from reserves....................................................... Balance at end o f y ea r.............................................................. 1,913,757 339,781 164,011 22,220 358,238 43,666 64,505 4,856 1,555,519 296,15 99,506 17,364 955,963 204,353 1,846 16,071 296,273 45,711 -4,035 13,002 62,981 13,013 -8,356 -122 596,709 145,630 14,240 3,192 599,555 91,762 97,659 1,293 6,232,238 997,222 5,235,016 3,438,275 1,255,669 289,548 1,892,761 1,796,740 323,649 2,013,037 1,947,253 6,832 49,198 67,196 411 411 5,237 1,059 4,135 36 1,905 8,002 2,635 9 972 21,351 362,351 1,403,450 1,240,330 59,193 5,595,132 3,647,880 175,887 52,662 123,225 56,029 169 6,236 18,782 4,332 23,453 -166,387 133 3,921 5,132 639 9,346 -716,521 36 2,315 13,649 3,693 14,108 -463,585 7,258 41,362 203,907 192,480 4,819 1,311,194 -151,118 411 5,648 1,059 4,135 1,228,600 146,749 227,463 206,936 20,621 150,076 351,272 77,208 117,204 4,399,882 473,093 857,876 329,705 62,025 780,202 1,839,208 206,009 663,774 375,062 61,627 19,084 84,109 4,764 102,622 676,721 295,817 566,170 56,125 52,598 73,970 17,084 7,084 18,272 1,261 12,894 134,252 68,225 118,716 11,319 10,859 1,020,154 13,721 246,958 8,017 -252,934 7,243 49,651 64,531 2,472,995 360,313 571,069 183,020 31,473 534,422 1,150,851 116,634 490,066 670,442 788,421 285,213 -29,140 49,723 4,819 121,928 309,887 24,018 216,615 206,296 1,519,003 1,798,050 301,093 33,543 12,000 65,837 3,503 89,728 542,469 227,592 447,454 44,806 41,739 182,638 20,718 3,444 33,306 1,749 61,806 322,895 119,437 255,419 27,021 24,607 53,021 4,700 535 7,801 541 23,871 97,814 27,942 75,534 8,939 8,031 14,130 1,469 149 2,662 150 3,179 23,272 8,928 17,814 2,126 2,075 115,486 14,550 2,760 22,843 1,058 34,756 201,810 82,567 162,071 15,956 14,501 118,455 23,826 8,556 32,531 1,754 27,922 219,573 108,155 192,034 17,786 17,132 773,196 5,704 407,417 178 97,709 13 22,384 9 287,324 156 365,779 5,526 200,897 31,374 39,000 93,812 7,989 1,442 121,907 17,515 28,796 1,483,678 43,726 561,210 39,485 18,665 411,052 719,057 75,101 244,655 1,926,886 112,780 286,807 146,685 30,552 245,781 688,357 89,375 173,708 MEMBER 56,894 2,395,741 -290,674 6,711 140,282 415,369 391,269 20,580 AND 121,425 4,193,791 -21,792 1,947 103,970 423,533 394,645 14,529 1973 □ INSURED 51,863 1,434,762 7,293 63,883 29,086 7,989 MAY 173,288 5,628,553 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and resale purchases)................................................................................ U .S. Treasury securities1 ........................................................... Other U.S. Govt, securities (agencies and corporations)1. . Obligations o f States and political subdivisions1................. All other securities1 ..................................................................... Cast assets....................................................................................... Total assets5 .................................................................................... Time and savings deposits........................................................... Total deposits................................................................................. Total capital accounts plus total reserves............................... Equity capital plus total reserves.............................................. BANKS, 1972 A 97 9,205 152,624 691,324 616,210 27,337 1,124,735 -882,908 5,628,482 619,842 1,085,339 536,641 82,646 930,279 2,190,479 283,217 780,978 For numbered notes see p. A-103. 15,915 292,906 1,106,693 1,007,480 47,917 6,719,867 Total net changes in capital accounts............................................ Net income transferred to undivided profits........................... Common stock sold (n et)........................................................... Preferred stock, capital notes, and debentures sold............. Premium received on new capital stock sold......................... . Transfers from loan and securities reserves............................ Other increases.............................................................................. Dividends declared......................................................................... Transfers to loan and securities reserve (net o f tax effect).. Other decreases.............................................................................. . Number o f officers and employees................................................ Number o f banks.............................................................................. 5,436 69,445 296,757 232,850 11,276 A 98 MEMBER INCOME, EXPENSES, AND DIVIDENDS, BY FEDERAL RESERVE DISTRICT I te m B o sto n N ew Y ork P h ila d e lp h ia C le v e la n d R ic h m ond A tla n ta C h ic a g o St. L o u is O p e ra tin g e x p e n se s— T o t a l ................................................................................ 1 ,0 5 5 ,7 6 6 5 ,7 8 0 ,8 6 8 1 ,2 5 7 ,2 4 3 1 , 8 6 1 ,9 9 5 1 ,4 3 2 ,7 2 9 1 ,8 4 1 ,7 7 8 3 ,8 8 8 ,0 2 0 8 0 5 ,2 4 4 3 9 6 ,1 5 7 3 7 0 ,2 7 5 4 4 8 ,6 5 7 2 7 7 ,8 6 0 2 9 8 ,5 7 2 1 ,4 3 0 ,2 5 5 S a la ries a n d w a g e s o f o fficers a n d e m p lo y e e s ................................... 7 4 ,7 2 2 1 4 3 ,5 8 3 6 1 ,4 8 9 6 2 ,6 6 9 5 4 ,3 1 5 5 6 ,1 7 0 3 0 0 ,4 2 5 O fficer a n d e m p lo y e e b e n e fits ...................................................................... In te r e s t p a id o n : 5 5 8 ,1 4 6 5 5 1 ,1 8 2 7 0 0 ,1 8 4 1 , 8 3 8 ,4 6 4 8 4 5 ,0 5 8 3 2 6 ,5 0 9 2 ,0 5 7 ,5 0 8 T im e a n d sa v in g s d e p o s i t s ....................................................................... F e d e r a l fu n d s p u r c h a s e d a n d se c u r itie s s o ld w ith r ep u r 2 2 1 ,4 0 6 3 8 ,5 5 4 7 2 ,9 1 1 4 2 2 ,0 1 5 5 2 ,3 6 3 8 9 ,0 6 0 6 1 ,2 5 4 c h a s e a g r e e m e n t.................................................................................... 1 5 ,3 0 4 1 5 ,4 5 4 1 0 ,8 7 5 2 ,6 5 7 3 ,7 1 1 2 5 ,6 8 7 2 ,6 4 9 O th e r b o r r o w e d m o n e y .............................................................................. 2 1 ,9 8 6 9 ,7 0 7 7 ,4 5 3 5 ,7 6 0 5 8 ,3 5 7 1 5 ,0 9 9 4 ,7 3 1 C a p ita l n o te s a n d d e b e n tu r e s ................................................................. 1 7 7 ,9 3 2 7 0 ,0 2 1 7 7 ,0 6 3 7 9 ,4 7 6 3 5 4 ,1 9 6 5 6 ,3 2 9 6 8 ,9 6 2 O c c u p a n c y e x p e n se o f b a n k p r e m ise s, n e t .......................................... 1 2 2 ,4 0 0 7 7 ,7 2 2 5 5 ,0 7 1 1 6 7 ,2 1 2 4 0 ,9 0 6 6 4 ,1 2 8 4 2 ,8 2 5 F u r n itu r e , e q u ip m e n t, e tc ............................................................................... 9 3 ,1 2 0 6 0 ,3 9 0 2 9 ,6 1 4 4 9 ,5 3 9 3 2 ,5 3 9 2 1 1 ,6 7 5 3 5 ,3 7 5 P r o v is io n fo r lo a n lo s s e s ................................................................................. 4 4 8 ,5 8 2 3 0 7 ,2 2 2 1 6 8 ,7 0 0 2 6 8 ,6 7 2 2 3 2 ,0 3 6 7 5 3 ,5 3 9 O th e r o p e r a tin g e x p e n s e s ............................................................................... 1 5 8 ,7 1 8 K an sas C ity D a lla s San F r a n c isc o 8 7 7 ,1 2 8 1 , 4 1 1 ,7 8 9 1 ,6 8 7 ,2 9 4 5 ,2 7 1 ,3 0 5 5 6 9 ,7 1 1 8 9 7 ,9 0 1 1 ,0 7 9 ,4 3 2 3 ,4 9 6 ,6 6 1 1 6 ,1 0 0 4 6 ,5 4 3 7 3 ,2 6 0 1 4 2 ,4 9 3 8 7 ,4 8 6 2 6 ,0 6 6 7 1 ,7 3 9 2 ,4 4 6 2 2 ,0 1 7 2 6 ,0 4 4 3 4 ,8 4 2 1 3 3 ,9 4 8 3 3 ,3 0 9 1 2 6 ,2 0 0 6 ,4 4 9 4 2 ,3 9 5 4 9 ,3 2 5 4 6 ,3 3 2 1 2 4 ,1 3 3 4 9 ,3 0 7 1 6 0 ,5 3 1 9 ,5 2 4 4 9 ,0 7 4 5 2 ,5 8 8 4 2 ,1 5 9 3 5 1 ,5 7 9 1 0 6 ,2 7 5 3 5 8 ,4 0 4 2 3 ,0 1 2 1 4 0 ,0 8 4 2 1 4 ,4 7 0 1 9 4 ,0 2 1 4 ,5 1 8 1 6 ,1 6 0 3 ,5 3 3 2 5 ,3 5 9 1 2 ,9 3 4 3 4 ,8 4 6 4 4 ,1 9 5 2 0 0 ,1 1 2 8 2 8 ,6 0 1 1 8 3 ,6 8 8 3 0 ,1 7 0 7 0 3 ,2 9 6 1 ,1 2 5 ,8 6 5 1 , 3 5 0 ,6 2 3 4 , 5 1 2 ,1 0 6 2 8 3 ,1 5 1 1 ,1 2 3 ,5 4 0 1 4 0 ,6 3 5 2 6 2 ,2 6 2 1 8 2 ,5 6 5 4 2 ,7 6 0 3 9 ,3 3 8 2 4 ,8 2 4 3 5 0 ,6 9 9 3 4 3 ,2 6 3 4 6 1 ,7 7 8 5 6 1 ,1 2 3 1 ,9 1 9 ,0 0 9 4 1 ,4 8 3 1 ,6 8 3 3 ,3 9 9 3 5 ,4 2 1 3 2 ,2 9 1 2 2 ,4 7 1 1 2 7 ,2 9 8 3 0 ,4 9 9 3 ,1 9 8 6 ,1 5 6 2 2 ,2 7 1 2 3 ,4 1 6 1 1 ,8 9 9 9 7 ,1 3 5 4 4 ,5 4 4 3 ,3 2 8 6 ,3 4 0 4 3 ,9 0 1 4 3 ,0 1 3 3 5 ,1 3 4 1 8 6 ,2 2 9 9 5 ,5 1 3 1 0 ,8 4 3 2 ,8 3 8 3 9 ,9 3 9 5 0 ,6 0 8 4 9 ,3 4 0 2 1 4 ,5 0 7 2 1 7 ,6 6 4 6 ,6 7 6 4 1 ,7 2 2 2 3 3 ,8 9 3 1 2 8 ,0 8 9 1 3 5 ,7 7 3 5 2 3 ,1 7 4 I n c o m e befo re in co m e t a x e s an d se cu ritie s g ains or lo s s e s .................. A p p lic a b le in c o m e t a x e s ................................................................................. I n c o m e b e fo r e s e cu ritie s g a in s o r l o s s e s ................................................ N e t s e cu ritie s g a in s o r lo s s e s ( —) a fte r t a x e s ..................................... E x tr a o r d in a ry c h a r g e s ( —) o r c r ed its a fter t a x e s ............................ L e s s m in o r ity in te r e st in c o n s o lid a te d su b sid ia ries . • •• 2 3 3 ,1 3 1 1 , 4 4 2 ,1 9 6 3 5 2 ,1 8 3 6 8 ,7 8 9 1 6 4 ,3 4 3 1 ,0 9 0 ,0 1 4 1 ,8 2 6 3 ,5 9 3 8 ,7 1 2 112 2 6 4 ,9 7 5 4 3 ,3 7 2 2 2 1 ,6 0 3 5 ,9 7 5 -7 4 7 251 4 2 6 ,5 2 0 7 3 ,7 8 9 3 5 2 ,7 3 2 1 0 ,2 7 5 286 11 3 3 7 ,2 8 2 8 3 ,4 0 9 2 5 3 ,8 7 3 4 ,1 5 1 870 4 3 9 ,0 8 8 1 0 5 ,2 8 2 3 3 3 ,8 0 6 7 ,8 5 7 -8 7 8 0 6 ,8 0 3 1 7 3 ,1 9 0 6 3 3 ,6 1 3 - 1 4 ,7 8 5 -1 4 1 18 1 9 0 ,0 1 5 4 3 ,2 2 5 1 4 6 ,7 9 0 5 ,3 3 8 604 85 1 7 3 ,8 3 2 5 4 ,1 3 2 1 1 9 ,7 0 0 1 ,9 3 1 962 2 8 5 ,4 2 9 7 4 ,2 5 5 2 1 1 ,1 7 4 5 ,1 4 9 179 4 3 3 7 ,1 6 7 7 9 ,6 5 2 2 5 7 ,5 1 5 6 ,1 1 6 2 29 7 5 9 ,2 0 0 2 0 4 ,3 3 2 5 5 4 ,8 6 8 9 ,0 4 9 2 ,7 7 0 2 N e t in c o m e ................................................................................................................... 1 6 6 ,2 8 0 1 ,1 0 2 ,3 1 9 2 2 6 ,5 8 0 3 6 3 ,2 8 2 2 5 8 ,8 9 5 3 4 1 ,5 7 6 6 1 8 ,6 6 7 1 5 2 ,6 4 6 1 2 2 ,5 9 4 2 1 6 ,4 9 8 2 6 3 ,8 6 0 5 6 6 ,6 8 5 8 9 ,7 6 8 34 4 6 5 ,9 3 9 928 1 0 5 ,6 3 3 20 1 4 5 ,8 7 5 366 1 0 0 ,0 8 3 632 1 2 0 ,5 8 7 133 2 7 3 ,1 3 4 350 5 6 ,7 7 4 7 4 4 ,9 6 8 25 8 5 ,8 5 9 2 92 9 2 ,6 8 2 17 2 5 5 ,0 4 7 54 6 8 ,7 8 9 3 5 2 ,1 8 3 4 3 ,3 7 2 7 3 ,7 8 9 8 3 ,4 0 9 1 0 5 ,2 8 2 1 7 3 ,1 9 0 4 3 ,2 2 5 5 4 ,1 3 2 7 4 ,2 5 5 7 9 ,6 5 2 2 0 4 ,3 3 2 1 ,9 3 0 -6 ,6 4 7 6 4 ,0 7 2 4 1 ,9 2 3 2 2 ,1 4 9 3 ,6 9 9 - 3 1 ,7 9 7 3 2 4 ,0 8 5 2 1 4 ,4 1 5 1 0 9 ,6 6 9 2 ,5 2 3 - 6 ,4 7 6 3 9 ,4 1 9 3 8 ,7 8 7 632 1 1 ,3 2 5 - 8 ,7 9 0 7 6 ,3 2 4 7 6 ,2 9 9 24 2 ,6 2 0 - 1 1 ,3 7 6 7 4 ,6 5 3 6 7 ,3 4 0 7 ,3 1 3 5 ,5 8 0 - 1 2 ,0 8 0 9 8 ,7 8 2 8 7 ,9 2 3 1 0 ,8 5 9 7 ,8 2 9 - 2 0 ,6 7 0 1 6 0 ,3 4 9 1 3 6 ,1 2 4 2 4 ,2 2 5 4 ,0 0 8 - 3 ,7 1 1 4 3 ,5 2 3 4 1 ,7 2 2 1 ,8 0 0 9 62 - 6 ,5 9 1 4 8 ,5 0 3 3 2 ,9 0 8 1 5 ,5 9 5 3 ,4 2 7 - 6 ,7 3 9 7 0 ,9 4 3 6 2 ,3 9 0 8 ,5 5 3 3 ,3 1 3 - 8 ,0 3 6 7 4 ,9 2 8 7 4 ,6 5 9 269 9 ,4 3 3 - 2 9 ,7 9 9 1 8 3 ,9 6 6 1 2 4 ,2 2 0 5 9 ,7 4 7 C a sh divid en d s d e c la r e d : O n c o m m o n s t o c k .............................................................................................. O n p referred s t o c k ............................................................................................. M e m o r a n d a ite m s: In c o m e ta x e s a p p lic a b le to 1972 o p e r a tin g i n c o m e ...................... T a x effect o f : N e t se c u r itie s g a in s o r lo s s e s ( —), e t c ............................................... T ra n sfers— C a p ita l a c c o u n ts to IR S lo a n lo ss re se r v e s2 . . . . T o ta l p ro v isio n f o r in com e ta x e s , 1 9 7 2 ................................................... F e d e r a l................................................................................................................. S ta te a n d l o c a l ................................................................................................ 1973 O p e r a tin g in c o m e — T o t a l ................................................................................... 1 ,2 8 8 ,8 9 7 7 , 2 2 3 ,0 6 5 1 ,5 2 2 ,2 1 8 2 , 2 8 8 ,5 1 5 1 ,7 7 0 ,0 1 2 2 ,2 8 0 ,8 6 6 4 , 6 9 4 ,8 2 3 1 ,0 1 8 ,6 1 6 L oan s: 6 2 0 ,8 5 9 8 3 6 ,4 7 5 4 , 6 0 2 ,7 8 9 1 ,0 0 0 ,5 9 3 1 ,3 9 1 ,6 5 5 1 ,1 8 7 ,5 6 4 1 ,4 3 2 ,3 8 2 2 ,8 8 1 ,0 3 6 In te r e st a n d f e e s ............................................................................................. F e d . fu n d s s o ld a n d se cu ritie s p u rch a sed w ith resale 3 5 ,3 3 1 3 4 ,7 4 0 6 8 ,0 1 0 1 5 4 ,8 1 4 8 4 ,8 8 9 2 4 ,1 1 3 8 5 ,3 1 0 2 8 ,2 6 6 a g r e e m e n t.................................................................................................. S e c u r ities— In ter e st a n d d iv id e n d s : 1 1 0 7 ,3 7 3 4 2 8 ,6 6 9 1 2 7 ,8 1 5 1 8 4 ,9 3 9 2 3 9 ,0 5 9 4 3 7 ,9 2 2 1 1 4 ,8 9 6 7 4 ,2 2 2 1 3 1 ,9 4 0 3 9 ,8 2 8 5 3 ,8 8 0 5 1 ,2 2 2 6 8 ,4 8 8 3 6 ,1 5 0 2 1 ,8 8 1 1 1 1 ,4 8 9 O th e r U .S . G o v t, se cu ritie s (a g en cie s an d c o r p o r a tio n s). . . 9 1 ,2 4 1 4 3 1 ,0 5 5 2 4 2 ,0 7 1 1 6 3 ,8 1 1 2 1 6 ,9 6 6 1 4 5 ,6 1 3 1 0 3 ,0 0 6 5 9 8 ,2 9 1 O b lig a tio n s o f S ta te s a n d p o litic a l s u b d iv is io n s ......................... 7 ,1 1 5 5 ,9 5 5 1 7 ,5 5 1 5 5 ,1 2 3 2 3 ,0 1 6 1 9 ,0 3 7 8 ,2 2 4 5 6 ,3 6 9 A ll o th e r s e c u r itie s ........................................................................................ 2 6 ,5 6 4 1 8 5 ,8 2 1 9 2 ,9 9 7 5 1 ,4 0 0 6 2 ,7 3 7 6 1 ,1 6 2 4 3 9 ,0 3 0 9 5 ,6 0 8 2 7 ,8 5 6 1 0 1 ,2 7 3 5 5 ,2 0 3 5 6 ,7 9 1 9 1 ,0 0 1 3 7 ,5 5 1 3 8 ,7 9 3 1 5 3 ,2 8 6 S e r v ic e c h a r g e s o n d e p o s it a c c o u n t s ....................................................... 2 7 ,7 8 5 111 ,7 5 3 4 7 ,6 2 3 7 9 ,1 9 2 5 7 ,1 1 8 4 2 ,3 8 6 3 5 ,9 3 1 1 4 4 ,4 1 7 O th e r o p e r a tin g in c o m e : 2 6 ,7 5 4 1 0 ,1 1 1 1 7 ,1 4 2 8 ,4 7 0 8 ,7 5 0 1 0 9 ,3 3 2 4 ,0 0 9 4 ,4 1 9 O n tra d in g a c c o u n t ( n e t ) ........................................................................... 2 4 ,5 5 3 1 8 6 ,5 8 6 3 1 ,9 6 3 5 0 ,8 5 1 3 4 ,1 4 3 3 2 ,5 5 3 4 6 ,2 2 6 4 8 4 ,8 3 0 O th e r ...................................................................................................................... M in n e a p o lis BANKS, 1972 □ MAY ( In c o m e , etc. in th o u s a n d s , a n d a sse t a n d lia b ility ite m s in m illio n s , o f d o lla r s) M e m o r a n d a ite m s ( c o n t .) : N e t se c u r itie s g a in s o r lo ss e s ( —) b e fo re in c o m e t a x e s ................ E x tr a o r d in a ry c h a r g e s ( —) o r cred its b e fo re in c o m e t a x ............. 4 1 1 ,6 7 0 5 7 ,4 7 4 4 ,4 4 4 1 1 ,5 6 1 6 3 ,4 1 2 7 ,0 8 3 9 ,7 7 9 - 2 ,0 2 8 1 0 0 ,5 7 9 2 1 ,1 0 3 2 1 ,3 9 1 49 5 8 5 ,2 9 2 15 ,2 7 1 6 ,5 0 0 1 ,1 4 1 1 0 6 ,9 7 8 2 9 ,9 1 5 1 3 ,1 2 9 220 2 1 3 ,6 6 1 3 5 ,7 2 9 - 6 ,6 3 3 -4 6 4 4 1 ,5 1 2 6 ,0 9 2 8 ,8 7 3 1 ,0 7 7 3 1 ,8 6 8 9 ,5 9 7 3 ,1 6 9 686 6 3 ,9 6 8 2 0 ,0 6 7 8 ,6 6 5 90 8 1 ,1 5 7 4 1 ,2 1 8 9 ,6 3 5 24 2 7 5 ,1 1 0 4 1 ,2 1 7 1 6 ,7 4 3 4 ,5 0 8 210,887 1,618,958 254,029 350,948 243,815 277,819 810,022 137,170 125,414 174,354 240,588 791,012 956 7 ,2 3 7 4 4 ,3 6 3 4 2 ,4 3 1 717 470 1 8 ,1 1 9 7 0 ,9 5 2 6 3 ,6 8 4 7 ,4 5 0 85 2 1 2 ,1 5 1 5 6 ,6 8 8 3 6 ,4 8 1 2 ,1 1 7 868 3 0 ,4 7 7 8 7 ,3 3 5 8 2 ,7 0 8 2 ,9 2 6 58 3 4 ,4 7 6 1 4 4 ,8 4 1 1 0 6 ,8 1 9 1 3 ,3 1 3 3 9 ,0 0 1 3 1 ,6 5 4 2 6 ,7 5 8 1 ,2 8 9 16 6 ,2 2 4 2 5 ,1 6 4 1 8 ,0 5 7 1 ,0 9 9 79 1 5 ,1 3 4 5 0 ,6 0 2 4 5 ,1 0 3 1 ,5 2 9 255 3 6 ,3 8 1 6 8 ,2 3 7 7 5 ,4 5 1 4 ,5 0 1 699 4 8 ,4 7 9 1 9 8 ,5 6 5 1 8 2 ,1 9 8 4 ,3 5 0 265,510 852,208 8 0 ,3 1 2 1 1 ,3 5 0 3 ,8 1 1 57 R e s e r v e s fo r lo s s e s o n l o a n s : 3 Balance at beginning o f yea r ............................................................ A d d itio n s d u e to m erg ers and a b s o r p t io n s ............................... R e c o v e r ie s c r ed ite d to r e s e r v e s ........................................................ T r a n sfe rs t o r e s e r v e s .............................................................................. L o s s e s c h a r g e d t o r e s e r v e s ................................................................. T r a n sfe rs fr o m r e s e r v e s ....................................................................... Balance at end o f y ea r ........................................................................ N e t lo a n lo s s e s ( —) o r r e co v e r ie s 4 ........................................................ R e s e r v e s o n s e c u r it ie s : Balance at beginning o f year ............................................................. T r a n sfe rs t o r e s e r v e s .............................................................................. T r a n sfe rs fr o m r e se r v e s ........................................................................ Total net changes in capital accounts ...................................................... N e t in c o m e tra n sferred t o u n d iv id ed p r o fits ..................................... C o m m o n s to c k s o ld ( n e t ) ............................................................................. P referred s to c k , c a p ita l n o te s, an d d eb en tu res s o l d ....................... P r e m iu m r e ce iv e d o n n e w ca p ita l sto c k s o ld ..................................... T r a n sfe rs fr o m lo a n a n d se cu ritie s r e se r v e s ........................................ O th e r in c r e a s e s ..................................................................................................... D iv id e n d s d e c la r e d ............................................................................................ T r a n sfe rs t o lo a n a n d s e cu ritie s reserv es (n et o f tax e ffe c t). . . . O th e r d e c r e a s e s .................................................................................................... 1 ,0 2 1 1 3 ,1 0 1 4 8 ,7 2 0 5 1 ,9 4 1 1 ,5 0 4 1 0 ,6 3 8 6 2 ,1 2 7 2 7 9 ,5 7 1 2 7 5 ,8 5 1 7 ,1 2 3 263,437 369,356 274,908 310,864 869,265 149,781 137,662 193,357 - 3 8 ,8 6 4 - 2 1 3 ,7 2 1 - 3 5 ,1 9 0 - 4 5 ,9 3 5 - 2 4 ,4 3 7 - 5 2 ,2 3 2 - 7 2 ,5 1 3 - 1 7 ,8 3 9 - 1 1 ,8 8 3 - 3 0 ,3 1 6 1,598 3,733 945 30,730 5,084 10,579 20,658 13,515 2,359 2,882 25,072 6,070 96 401 148 347 867 27 66 24 7 14 2 ,8 7 8 26 4 ,3 8 2 12 69 166 33 350 496 565 4 594 18 428 1 ,8 7 4 244 1 ,4 4 3 57 1 ,1 6 3 51 803 175 694 1 ,8 8 2 3 74 95 187 46 26 323 3 ,2 5 1 1 ,0 8 1 1 ,4 4 7 1,450 3,734 1,749 29,221 4,818 10,546 21,290 13,880 193 2 ,2 2 5 110 3 ,8 2 1 971 3,092 26,117 4,557 81,332 925,611 165,726 259,208 218,889 386,629 669,060 117,440 142,425 169,324 256,668 801,480 1 6 6 ,2 8 0 1 ,1 0 2 ,3 1 9 3 1 1 ,8 1 7 2 ,1 8 3 5 ,5 2 9 2 5 ,8 5 9 1 ,0 0 9 6 9 ,6 0 9 7 ,4 7 0 1 ,8 5 4 1 2 ,3 1 2 1 6 5 ,8 8 1 4 6 6 ,8 6 7 8 9 ,8 0 2 7 ,1 3 1 3 6 ,4 7 4 2 5 4 ,0 0 2 1 0 ,9 0 2 2 2 6 ,5 8 0 3 ,1 9 5 6 4 ,9 5 5 1 0 ,6 8 0 741 4 2 ,7 6 3 1 0 5 ,6 5 4 8 ,3 1 3 6 9 ,2 2 2 3 6 3 ,2 8 2 3 ,1 1 2 3 0 ,2 0 7 7 ,2 1 8 1 1 ,8 3 2 1 6 ,6 2 7 1 4 6 ,2 4 1 1 5 ,9 5 2 1 0 ,8 7 6 2 5 8 ,8 9 5 7 ,1 9 2 2 0 ,4 9 6 1 3 ,8 5 3 2 ,6 1 4 5 5 ,8 2 0 1 0 0 ,7 1 5 1 3 ,0 5 3 2 6 ,2 1 3 3 4 1 ,5 7 6 2 9 ,8 5 5 7 3 ,4 2 9 5 9 ,1 5 9 3 ,5 2 1 5 0 ,3 9 3 1 2 0 ,7 2 0 1 5 ,4 5 5 3 5 ,1 2 8 6 1 8 ,6 6 7 6 2 ,6 5 5 1 5 8 ,2 4 2 1 2 8 ,0 4 8 1 4 ,7 5 5 6 3 ,9 8 8 2 7 3 ,4 8 4 3 2 ,9 2 4 7 0 ,8 8 7 1 5 2 ,6 4 6 7 ,5 9 5 5 ,0 8 6 7 ,0 3 2 2 ,0 9 2 1 1 ,3 7 4 5 6 ,7 8 1 6 ,6 3 4 4 ,9 7 1 1 2 2 ,5 9 4 2 ,9 8 0 6 0 ,4 8 9 5 ,2 0 8 1 ,4 7 3 7 ,7 6 8 4 4 ,9 9 3 7 ,4 5 2 5 ,6 4 1 2 1 6 ,4 9 8 3 ,3 3 8 3 2 ,1 3 8 4 ,9 0 1 1 ,5 5 6 1 7 ,0 2 1 8 6 ,1 5 2 9 ,2 7 3 . 1 0 ,7 0 3 2 6 3 ,8 6 0 1 1 ,9 3 3 7 0 ,0 1 5 1 6 ,1 5 9 5 ,9 4 8 3 3 ,9 7 4 9 2 ,6 9 9 1 5 ,6 7 3 3 6 ,8 4 8 5 6 6 ,6 8 5 2 7 ,2 3 8 3 1 1 ,4 3 2 6 ,8 3 1 8 ,1 7 0 3 0 2 ,2 8 3 2 5 5 ,1 0 1 3 7 ,6 7 6 128 ,3 8 1 220,285 1,688,320 21 8 - 3 9 ,6 5 3 - 1 3 3 ,9 2 8 A s s e t s , d e p o s its , a n d c a p ita l a cco u n ts: L o a n s g r o s s (in c lu d in g F e d e r a l fu n d s s o ld and resa le p u r1 4 ,9 5 5 2 ,1 1 9 591 3 ,6 1 3 307 3 ,4 5 4 2 6 ,0 3 2 1 2 ,0 4 4 2 1 ,6 5 2 2 ,2 7 6 2 ,0 5 0 2 1 ,3 1 4 4 ,3 7 3 830 5 ,8 0 0 317 5 ,3 0 0 3 9 ,3 6 7 1 8 ,7 2 3 3 2 ,7 9 6 3 ,6 3 6 3 ,5 5 1 1 6 ,0 9 3 2 ,2 2 8 837 3 ,9 6 2 101 4 ,2 9 8 2 8 ,4 7 5 1 2 ,0 9 8 2 4 ,2 3 1 2 ,3 4 7 2 ,2 1 7 1 9 ,4 6 5 3 ,3 5 2 1 ,1 2 0 5 ,0 6 8 275 6 ,2 1 5 3 6 ,9 0 7 1 4 ,8 9 3 3 1 ,2 6 0 3 ,0 1 8 2 ,8 7 9 4 5 ,9 6 9 7 ,7 9 2 2 ,1 0 1 1 0 ,1 2 7 78 9 1 1 ,2 7 9 8 1 ,3 9 7 3 9 ,0 9 1 6 7 ,9 6 4 6 ,7 0 5 6 ,2 4 5 9 ,5 4 6 1 ,9 8 2 688 2 ,2 4 6 115 3 ,0 2 3 1 8 ,2 6 0 7 ,3 4 1 1 5 ,3 3 4 1 ,5 3 0 1 ,4 6 6 8 ,0 4 2 1 ,7 0 8 446 1 ,6 9 6 40 1 ,9 3 8 1 4 ,4 9 7 6 ,9 4 1 1 2 ,2 2 6 1 ,1 3 1 1 ,0 4 4 1 2 ,8 0 6 2 ,4 2 1 540 3 ,0 0 1 105 3 ,8 8 7 2 3 ,4 9 8 9 ,4 7 1 1 9 ,8 7 8 1 ,9 7 2 1 ,8 8 1 1 6 ,3 0 2 2 ,3 0 7 837 4 ,0 7 5 153 5 ,4 8 9 3 0 ,4 5 5 11,4 5 1 2 5 ,2 2 5 2 ,3 9 2 2 ,3 0 7 5 0 ,5 1 3 6 ,9 3 9 1 ,8 6 4 9 ,1 3 3 2 94 1 2 ,9 8 9 8 6 ,4 6 6 4 2 ,1 8 3 7 1 ,6 9 7 6 ,0 0 2 5 ,3 5 8 N u m b e r o f o ffic er s a n d e m p lo y e e s ............................................................... N u m b e r o f b a n k s .................................................................................................... 3 9 ,6 0 4 21 9 1 5 7 ,0 4 4 334 3 8 ,1 7 3 294 5 4 ,0 9 5 46 3 5 3 ,4 9 5 363 6 2 ,8 6 6 575 1 0 3 ,6 4 7 939 2 7 ,0 0 7 430 1 9 ,2 4 5 498 3 4 ,9 1 5 813 3 8 ,1 7 0 633 1 4 4 ,9 3 5 143 F o r n u m b e r e d n o te s se e p . A - 105. BANKS, 1972 A 99 1973 □ MEMBER 7 3 ,8 0 8 7 ,9 6 6 1 ,7 7 3 1 4 ,3 7 8 87 6 2 8 ,3 2 8 1 3 5 ,7 1 1 4 5 ,9 9 2 1 0 7 ,8 7 1 1 2 ,0 5 1 1 0 ,9 8 4 MAY T im e a n d sa v in g s d e p o s i t s ........................................................................... T o t a l d e p o s i t s ....................................................................................................... T o t a l c a p ita l a c c o u n ts p lu s to ta l r e se r v e s ............................................ E q u ity c a p ita l p lu s t o ta l r e se r v e s .............................................................. 1 2 ,2 8 1 1 ,3 5 7 374 2 ,7 3 8 131 3 ,5 3 0 2 1 ,4 0 2 7 ,3 6 5 1 7 ,3 1 9 1 ,8 4 7 1 ,7 5 9 U .S . T r e a su r y s e c u r itie s 1............................................................................. O th er U .S . G o v t se cu ritie s (a g en cies and c o r p o r a tio n s) 1 .......... O b lig a tio n s o f S ta te s a n d p o litic a l s u b d iv isio n s 1........................... A ll o th e r se c u r itie s 1 ........................................................................................ C a s h a s s e t s ............................................................................................................. A 100 INCOME, EXPENSES, AND DIVIDENDS OF LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT Federal Reserve District Item New York Phila delphia Cleve land Rich mond Atlanta Chicago Minne apolis St. Louis Kansas City Dallas San Francisco 461,168 5,236,237 711,670 1,249,668 831,368 826,297 2,349,069 467,144 261,871 467,141 729,718 4,364,722 270,372 3,359,459 484,619 740,830 560,337 548,984 1,490,522 293,877 170,859 310,086 477,673 2,886,040 10,633 51,055 9,426 60,158 14,153 26,676 98,201 18,910 4,516 16,298 42,509 130,973 27,367 275,883 31,795 103,344 50,863 49,282 159,698 31,934 12,925 28,151 36,553 286,386 9,996 30,048 2,323 53,344 5,858 18,894 31,019 361,299 34,515 379,281 81,431 112,793 3,588 55,944 4,744 43,853 17,588 32,660 19,111 136,700 14,577 71,897 24,046 36.560 15,101 78,669 2,492 36,047 27,845 20,882 5,534 59,948 9,720 31,748 27,146 29,510 20,054 209,616 17,697 139,211 33,821 60,776 7,293 38,515 4,035 17,842 11,903 16,659 3,400 16,287 596 16,681 3,172 17,369 1,388 37,767 2,311 29,126 7,314 17,868 4,797 68,664 3,371 36,287 7,744 21,746 80,034 283,778 20,176 122,415 167,987 161,165 3,055 29,279 105,609 443,894 4,009 23,444 17,031 25,414 6,519 18,460 6,700 31,049 24,327 95,147 9,413 16,765 4,518 11,550 2,977 13,857 10,845 19,531 42,848 182,919 Operating expenses—Total......................................... Salaries and wages o f officers and employees. .. Officer and employee benefits................................. Interest paid on: Time and savings deposits.................................. Federal funds purchased and securities sold with repurchase agreement......................... Other borrowed money...................................... . Capital notes and debentures............................. Occupancy expense of bank premises, net.......... Furniture, equipment, etc........................................ Provision for loan losses.......................................... Other operating expenses........................................ 361,466 4,123,034 586,405 1,012,238 672,143 195,143 184,939 32,137 42,123 7,749 377,324 85,784 13,393 572,101 3,726,939 215,766 33.561 668,752 1,935,021 398,892 170,771 75,898 30,717 384,994 139,525 29,676 106,770 18,147 918,844 152,810 Income before income taxes and securities gains or Applicable income taxes........................................... Income before securities gains or losses............... Net securities gains or losses ( —) after taxes... Extraordinary charges ( —) or credits after taxes Less minority interest in consolidated subsi diaries ................................................................... 87,039 15,537 109,063 19,407 1,031,072 225,231 91,289 1,353,438 200,613 427,969 230,653 206,340 826,242 130,708 65,047 125,597 215,940 1,599,922 43,696 986 2,727 24,512 15,717 12,185 41,885 379,599 21,978 50,375 259,802 113,583 165,333 522,625 49,757 9,739 13,684 27,701 19,376 18,792 77,542 84,795 1,852 3,974 45,322 32,703 30,588 135,709 28,943 2,617 6,613 37,225 25,059 14,701 109,256 50,374 13,172 4,484 29,121 30,179 25,601 107,993 200,420 13,760 15,284 94,541 57,781 53,766 198,437 38,966 1,439 2,628 16,861 15,803 14,229 61,785 27,253 2,993 3,466 4,986 5,248 3,714 32,564 32,326 1,309 3,757 14,517 15,952 14,882 69,807 84,012 10,036 993 5,752 22,178 21,358 86,917 201,803 4,263 35,055 191,271 98,408 112,390 412,172 99,702 1,113,203 304,680 37,350 808,524 62,352 -2 ,1 8 6 412 9,310 125,265 237,430 159,226 66,728 26,779 39,950 803 89,817 157,617 40,281 118,945 157,545 38,071 199,359 5,199 93 41,115 116,503 1,601 217 179,932 457,852 4,037 731 23,071 102,194 918 414,049 82,150 -1 2 44,455 113,090 2,175 227 89,534 324,515 -2 8 ,0 7 0 31 18,511 63,639 2,289 116 23,402 66,416 1,500 577 637,783 55 251 Net income.......................... 62,764 815,647 102,861 204,650 118,932 115,492 296,475 65,989 40,752 68,492 118,321 462,620 Cash dividends declared: On common stock ____ On preferred sto c k .. . . 37,418 326,326 920 52,324 94,031 47,870 632 53,492 125 171,924 196 32,149 17,663 41,539 52,185 17 222,010 37,350 304,680 23,071 38,071 40,281 44,455 89,534 18,511 26,779 23,402 41,115 179,932 985 1,719 1,411 3,471 - 4 ,2 8 7 23,477 14,875 8,603 - 3 ,1 9 4 21,926 19,503 2,423 - 6 ,2 6 0 36.266 36.266 -2 4 ,5 5 3 158,850 104,565 54,285 Memoranda items: Income taxes applicable to 1972 operating in come ..................................................................... Tax effect of: Net securities gains or losses ( —), etc.............. Transfers—Capital accounts to IRS loan loss reserve 2 ........................................................... Total provision for income taxes, 1972.................. Federal...................................................................... State and local......................................... 229 - 2 ,6 6 5 34,914 23,854 11,060 594 -2 2 ,9 6 7 282,306 187,707 94,600 454 -2 ,6 1 5 20,911 20,651 259 7,362 - 3 ,4 8 2 41.951 41.951 -1 3 7 -4 ,5 7 1 35,572 30,753 4,819 1,527 - 5 ,1 9 1 40,792 37,844 2,948 - 1 ,5 5 6 -12,112 75,865 65,569 10,296 1,894 —1,475 18,929 17,893 1,037 32 1973 Operating income—T otal............................................. Loans: Interest and fees..................................................... Federal funds sold and securities purchased with resale agreement................................... Securities—Interest and dividends:1 U.S. Treasury securities....................................... Other U.S. Govt, securities (agencies and corps)................................................................ Obligations of States and political subdivisions All other securities................................................. Trust department incom e........................................ Service charges on deposit accounts..................... Other charges, fees, etc............................................. Other operating incom e: On trading account (net)..................................... Other......................................................................... BANKS, 1972 □ MAY Boston MEMBER (Income etc., in thousands, and asset and liability items in millions, o f dollars) Memoranda items (cont.): Occupancy expense o f bank premises, gross. . . . Rental income from bank premises.................. Net securities gains or losses ( —) before income taxes...................................................................... Extraordinary charges ( —) or credits before in come taxes........................................................... Reserves for losses on loans:3 Balance at beginning o f year................................ Additions due to mergers and absorptions.. Recoveries credited to reserves...................... Transfers to reserves........................................ Losses charged to reserves.............................. Transfers from reserves.................................... Balance at end o f yea r.......................................... N et loan losses ( —) or recoveries 4 ..................... Reserves on securities: 29,746 5,234 308,977 49,175 32,767 5,066 61,238 15,916 46,521 9,296 45,770 16,649 113,557 19,016 20,739 3,878 10,961 5,975 27,134 12,617 33,423 27,671 2 2 5 ,i33 33,862 641 - 5 ,2 8 4 1,373 12,523 -1 5 0 3,615 -2 9 ,6 6 8 4,133 1,788 2,765 2,958 7,157 315 73 166 1,030 271 1,083 112,121 241 12,812 34,815 31,826 1,070 127,093 -1 9 ,0 1 3 684,471 163 37,499 165,829 151,014 11 736,937 -1 1 3 ,5 1 3 131 13,002 89,256 1,310,691 893 7,258 4,676 44,860 213,184 17,311 20,424 205,254 4,819 680 91,033 1,365,919 -1 6 0 ,3 9 4 -1 5 ,7 4 6 65 131,716 219,549 474,224 69,697 42,115 66,123 8,736 39,665 37,916 5,911 224,124 -2 9 ,1 7 8 128,006 650 5,222 24,033 16,063 1,762 140,086 -1 0 ,8 4 0 110,307 2,774 24,256 26,240 12,157 36,202 36,738 1,590 120,339 -2 4 ,5 7 9 14,954 85,943 51,233 10,363 513,525 -3 6 ,2 7 8 3,805 17,291 15,237 309 75,247 -1 1 ,4 3 1 615 11,495 6,020 8 48,197 - 5 ,4 0 4 4,513 21,300 18,248 815 72,873 - 1 3 ,7 3 4 24,000 279 3,137 6,832 9,017 132,507 -2 3 ,4 6 4 70 68 53 2,166 98 25 2,166 24,000 33 100 Total net changes in capital accounts......................... Net income transferred to undivided profits----Common stock sold (net)........................................ Preferred stock, capital notes, and debentures sold*........................................................................ Premium received on new capital stock sold. . . . Transfers from loan and securities reserves......... Other increases........................................................... Dividends declared.................................................... Transfers to loan and securities reserves (net of Other decreases.......................................................... 579 254 2,897 7,243 456 9,139 359,784 296,475 50,325 39,470 65,989 3,449 68,990 40,752 856 47,548 68,492 51 113,852 118,321 2,799 649,894 462,620 15,187 238,077 15 679,190 815,647 285,213 61,832 102,861 121,011 204,650 570 94,027 118,932 47 132,289 115,492 1,817 51,000 680 5,658 37,418 -2 9 ,1 4 0 49,723 4,917 121,928 327,246 24,052 52,324 10,000 1,291 8,077 1,371 94,031 15,000 208 2,040 21,927 48,501 56,150 8,355 1,844 21,493 53,617 104,665 112,912 10,363 32,664 172,120 3,584 766 1,115 32,149 45,000 3,974 8 25 17,663 24,304 136 815 16 41,539 56,015 2,838 1,949 10,294 52,202 13 293,880 222,042 2,530 1,301 24,985 216,865 2,850 60,907 7,761 3,157 4,760 10,866 5,425 13,821 20,476 55,026 2,165 1,117 3,494 467 3,223 1,504 10,014 16,147 28,952 108,889 4,227 469 55,456 4,961 7,213 587 12,059 1,876 7,823 888 7,541 933 25,462 3,039 4,769 613 2,692 331 4,619 559 8,021 733 42,755 5,729 167 809 44 1,617 7,859 1,974 5,772 714 664 541 8,355 549 24,343 101,749 29,798 78,523 9,252 8,327 59 1,322 79 1,987 11,888 4,258 9,197 1,075 874 314 3,257 194 3,388 22,101 9,484 17,612 2,140 2,085 231 1,966 44 2,483 13,935 5,210 11,642 1,163 1,076 97 1,412 145 2,614 13,386 4,460 10,683 1,153 1,065 317 4,803 270 6,887 43,074 17,593 33,954 3,612 3,354 125 954 65 1,759 8,700 2,720 6,819 730 681 58 365 12 869 4,722 1,410 3,549 386 339 24 920 47 1,680 8,191 2,644 6,577 682 624 80 1,793 61 2,880 14,361 4,480 11,040 1,092 1,035 1,430 7,351 239 11,298 72,930 35,404 60,050 5,023 4,485 12,028 4 103,329 16 16,492 6 26,380 16 24,714 15 21,610 20 46,476 24 12,506 15 5,280 8 10,407 18 12,661 17 , 115,534 19 27,854 62,764 A 101 411 279 BANKS, 1972 For numbered notes see p. A -103. 190 10 110 3 117 1973 □ MEMBER Number o f officers and employees............................ Number o f banks........................................................... 30 153 2,414 916 880 13,373 MAY Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and re sale purchases)................................................... U.S. Treasury securities1......................................... Other U.S. Govt, securities (agencies and corporations)1.................................................... Obligations of States and political subdivisions1 All other securities1................................................... Cash assets.................................................................. Total assets 5............................................................... Time and savings deposits...................................... Total deposits............................................................. Total capital accounts plus total reserves............ Equity capital plus total reserves.......................... 12,600 A 102 MEMBER INCOME, EXPENSES, AND DIVIDENDS OF ALL OTHER MEMBER BANKS, BY FEDERAL RESERVE DISTRICT I te m B o sto n P h ila d e lp h ia C le v e la n d 8 2 7 ,7 3 0 1 ,9 8 6 ,8 2 7 8 1 0 ,5 4 8 1 ,0 3 8 ,8 4 7 5 6 6 ,1 0 3 1 , 2 4 3 ,3 3 0 6 5 0 ,8 2 5 5 1 5 ,9 7 4 R ic h m ond A tla n ta C h ic a g o St. L o u is M in n e a p o lis K an sas C ity D a lla s San F r a n c isc o 9 3 8 ,6 4 3 1 ,4 5 4 ,5 6 9 2 , 3 4 5 ,7 5 4 5 5 1 ,4 7 2 6 1 5 ,2 5 7 9 4 4 ,1 5 3 9 5 8 ,0 7 1 9 0 6 ,5 8 3 6 2 7 ,2 2 7 3 2 6 ,9 8 3 3 9 8 ,8 5 2 5 8 7 ,8 1 6 6 0 1 ,7 6 0 6 1 0 ,6 2 0 8 8 3 ,3 9 8 1 ,3 9 0 ,5 1 4 3 4 ,2 5 6 1 8 ,8 4 0 2 4 ,7 3 1 2 0 ,5 8 8 4 1 ,3 3 5 5 6 ,6 1 3 1 6 ,4 2 0 1 1 ,5 8 4 3 0 ,2 4 5 3 0 ,7 5 1 1 1 ,5 1 9 4 6 ,8 5 6 1 1 ,8 8 6 7 2 ,9 5 8 5 ,9 0 0 4 2 ,2 6 4 3 2 ,9 3 5 1 7 ,0 3 7 1 6 2 ,0 3 9 8 0 ,4 6 9 2 3 6 ,9 9 2 2 1 ,8 5 4 5 9 ,7 4 8 7 1 ,8 5 6 3 1 ,6 2 5 8 3 ,1 0 1 3 2 ,5 6 3 8 9 ,6 7 0 1 4 ,2 9 3 1 7 ,3 0 9 1 9 ,9 6 3 9 ,7 2 6 1 3 5 ,7 1 6 3 2 ,1 1 1 1 0 5 ,3 7 2 8 ,4 3 9 2 1 ,1 0 0 3 1 ,1 5 7 2 0 ,5 5 8 7 6 ,9 5 2 3 8 ,7 7 9 8 5 ,1 4 1 3 ,4 6 3 1 5 ,3 5 3 2 8 ,9 4 6 2 6 ,7 4 2 1 3 5 ,6 5 6 6 2 ,9 5 4 1 5 7 ,0 1 8 7 ,8 3 1 3 0 ,9 8 9 6 3 ,8 5 4 4 9 ,6 8 3 2 6 8 ,9 7 1 1 1 1 ,8 8 6 2 2 1 ,4 3 9 3 7 ,4 2 6 4 6 ,6 1 0 6 7 ,4 5 2 5 0 ,9 7 7 7 5 ,4 3 9 3 2 ,5 3 6 5 2 ,7 2 6 3 ,0 8 0 8 ,7 2 3 1 5 ,9 5 3 1 1 ,1 2 7 7 4 ,5 6 0 2 2 ,6 6 7 5 5 ,4 5 2 1 ,8 5 0 5 ,3 3 7 2 2 ,8 7 3 1 7 ,4 7 3 1 0 5 ,7 9 7 3 1 ,9 2 2 8 8 ,4 3 3 4 ,1 3 9 1 3 ,2 6 8 4 2 ,0 1 2 2 8 ,4 6 4 8 7 ,5 8 0 4 4 ,5 1 0 9 1 ,8 6 7 6 ,1 5 3 1 2 ,7 8 8 4 4 ,8 4 5 2 0 ,4 1 3 6 5 ,1 9 3 2 6 ,2 4 1 7 4 ,6 2 6 2 ,8 3 6 1 7 ,6 6 9 4 6 ,4 8 3 3 2 ,8 5 7 1 3 64 1 6 ,9 4 8 3 ,7 2 3 4 0 ,9 3 6 9 ,1 1 0 111 8 ,7 2 9 1 ,9 5 1 1 3 ,5 0 3 2 ,0 5 0 1 9 ,8 0 2 2 ,4 2 8 9 1 ,4 3 9 698 7 ,7 8 8 4 ,6 1 0 557 1 1 ,5 0 2 2 ,0 9 0 1 5 ,3 1 5 1 ,3 4 7 1 7 ,1 9 3 6 9 4 ,3 0 0 1 ,6 5 7 ,8 3 4 3 9 9 ,1 8 3 1 8 9 ,5 0 9 3 6 ,7 6 3 7 5 ,1 9 4 6 7 0 ,8 3 7 1 3 8 ,3 3 5 2 4 ,6 3 8 8 4 9 ,7 5 7 1 8 0 ,3 9 1 2 7 ,9 2 8 7 6 0 ,5 8 7 1 , 1 7 3 ,0 2 6 1 ,9 5 2 ,9 9 9 4 0 6 ,3 5 2 1 8 5 ,3 3 6 2 7 7 ,8 8 7 3 0 ,5 3 2 6 7 ,6 8 5 4 4 ,0 0 5 4 4 3 ,6 0 7 9 6 ,6 4 9 1 4 ,6 3 3 5 0 8 ,1 5 3 9 8 ,5 1 1 1 7 ,0 7 5 7 4 8 ,5 4 1 1 7 6 ,4 7 8 2 5 ,9 4 5 7 7 8 ,5 2 2 1 7 6 ,3 8 1 2 4 ,6 1 3 7 8 5 ,1 6 7 2 0 4 ,6 9 7 2 9 ,7 5 4 2 3 5 ,2 2 0 7 0 4 ,0 7 0 3 5 0 ,5 6 9 4 1 7 ,0 8 9 3 2 7 ,4 9 4 4 9 3 ,8 4 3 1 ,0 1 2 ,2 2 2 2 1 9 ,9 9 0 2 7 8 ,2 1 6 3 3 6 ,1 8 1 3 4 5 ,1 8 3 3 1 9 ,0 8 7 1 7 ,5 5 8 1 ,6 6 3 2 ,0 0 4 4 4 ,4 5 1 2 7 ,1 0 9 2 3 ,1 9 1 1 1 6 ,8 3 3 4 2 ,4 1 7 3 ,7 0 9 7 ,9 8 2 9 4 ,3 9 5 5 3 ,6 2 9 4 6 ,3 4 2 2 3 0 ,9 1 5 2 ,6 0 6 1 ,1 3 6 1 ,4 1 6 2 8 ,6 2 8 2 1 ,5 3 0 1 0 ,8 2 2 9 1 ,1 5 8 4 ,2 6 5 805 1 ,7 8 6 3 4 ,1 5 4 3 1 ,4 2 5 1 8 ,9 5 1 1 3 2 ,9 6 4 9 ,6 1 1 1 ,0 9 4 3 ,0 9 4 3 2 ,7 9 6 3 0 ,0 1 3 1 7 ,8 3 8 1 2 2 ,7 8 0 2 2 ,5 3 7 2 ,2 8 2 2 ,9 7 0 4 7 ,9 4 2 4 7 ,5 4 3 3 4 ,7 8 9 1 9 9 ,2 2 8 2 0 ,9 8 6 1 ,5 4 4 6 ,7 0 2 8 3 ,3 9 1 6 4 ,6 1 9 3 9 ,3 5 5 2 5 0 ,1 4 4 2 ,5 1 7 244 771 1 8 ,5 5 9 1 6 ,4 8 9 8 ,2 4 2 6 5 ,5 1 4 3 ,2 4 7 20 6 2 ,6 9 0 1 7 ,2 8 6 1 8 ,1 6 9 8 ,1 8 5 6 4 ,5 7 1 1 2 ,2 1 8 2 ,0 1 8 2 ,5 8 3 2 9 ,3 8 4 2 7 ,0 6 1 2 0 ,2 5 1 1 1 6 ,4 2 2 1 1 ,5 0 2 807 1 ,8 4 5 3 4 ,1 8 7 2 8 ,4 3 0 2 7 ,9 8 2 1 2 7 ,5 9 1 1 5 ,8 6 1 2 ,4 1 4 6 ,6 6 7 4 2 ,6 2 2 2 9 ,6 8 1 2 3 ,3 8 3 1 1 1 ,0 0 2 In com e before in com e ta x e s and secu rities gains or lo ss e s ................. A p p lic a b le in c o m e t a x e s ................................................................................. I n c o m e b e fo r e secu rities g a in s o r l o s s e s ............................................... N e t secu rities g a in s o r lo ss e s ( —) a fter ta x e s ..................................... E x tra o rd in a ry ch a rg es ( —) o r cred its after t a x e s ............................ L e s s m in o r ity in te r e st in c o n s o lid a te d su b s id ia r ie s.................... 1 3 3 ,4 3 0 3 1 ,4 3 9 10 1 ,9 9 1 1 ,4 1 4 112 3 2 8 ,9 9 3 4 7 ,5 0 3 2 8 1 ,4 9 0 5 ,7 8 0 -5 9 7 1 3 9 ,7 1 0 2 0 ,3 0 1 1 1 9 ,4 1 0 5 ,0 5 7 -7 4 7 1 8 9 ,0 9 0 3 5 ,7 1 7 1 5 3 ,3 7 3 5 ,0 7 7 194 11 1 7 8 ,0 5 7 4 3 ,1 2 9 1 3 4 ,9 2 8 4 ,1 6 5 870 2 8 1 ,5 4 3 6 0 ,8 2 7 2 2 0 ,7 1 6 5 ,6 8 2 -3 1 4 3 9 2 ,7 5 5 8 3 ,6 5 6 3 0 9 ,0 9 9 1 3 ,2 8 5 -1 7 2 18 1 0 7 ,8 6 5 2 4 ,7 1 5 8 3 ,1 5 0 3 ,0 4 9 488 30 1 0 7 ,1 0 4 2 7 ,3 5 3 7 9 ,7 5 0 1 ,1 2 9 962 1 9 5 ,6 1 2 5 0 ,8 5 4 1 4 4 ,7 5 8 3 ,6 4 9 -3 9 7 4 1 7 9 ,5 4 9 3 8 ,5 3 7 1 4 1 ,0 1 3 4 ,5 1 5 12 1 2 1 ,4 1 6 2 4 ,4 0 0 9 7 ,0 1 6 5 ,0 1 2 2 ,0 3 9 2 N e t in c o m e ................................................................................................................... 1 0 3 ,5 1 7 2 8 6 ,6 7 2 1 2 3 ,7 1 9 1 5 8 ,6 3 2 1 3 9 ,9 6 3 2 2 6 ,0 8 4 3 2 2 ,1 9 2 8 6 ,6 5 7 8 1 ,8 4 1 1 4 8 ,0 0 6 1 4 5 ,5 4 0 1 0 4 ,0 6 5 C a sh divid en d s d ecla red : O n c o m m o n s t o c k .............................................................................................. O n p referred s t o c k ............................................................................ 5 2 ,3 5 0 34 1 3 9 ,6 1 3 8 5 3 ,3 1 0 20 5 1 ,8 4 4 3 66 5 2 ,2 1 3 6 7 ,0 9 6 8 1 0 1 ,2 1 0 154 2 4 ,6 2 5 7 2 7 ,3 0 6 25 4 4 ,3 2 0 29 2 4 0 ,4 9 6 3 3 ,0 3 8 22 3 1 ,4 3 9 4 7 ,5 0 3 2 0 ,3 0 1 3 5 ,7 1 7 4 3 ,1 2 9 6 0 ,8 2 7 8 3 ,6 5 6 2 4 ,7 1 5 2 7 ,3 5 3 5 0 ,8 5 4 3 8 ,5 3 7 2 4 ,4 0 0 1,7 0 1 - 3 ,9 8 3 2 9 ,1 5 8 1 8 ,0 6 9 1 1 ,0 8 9 3 ,1 0 5 - 8 ,8 3 0 4 1 ,7 7 8 2 6 ,7 0 9 1 5 ,0 7 0 2 ,0 6 9 - 3 ,8 6 1 1 8 ,5 0 8 1 8 ,1 3 6 373 3 ,9 6 3 - 5 ,3 0 7 3 4 ,3 7 3 3 4 ,3 4 8 24 2 ,7 5 8 - 6 ,8 0 5 3 9 ,0 8 2 3 6 ,5 8 7 2 ,4 9 5 4 ,0 5 2 - 6 ,8 9 0 5 7 ,9 9 0 5 0 ,0 7 9 7 ,9 1 1 9 ,3 8 6 - 8 ,5 5 8 8 4 ,4 8 4 7 0 ,5 5 5 1 3 ,9 2 9 2 ,1 1 4 - 2 ,2 3 5 2 4 ,5 9 3 2 3 ,8 3 0 764 -2 3 - 2 ,3 0 4 2 5 ,0 2 6 1 8 ,0 3 3 6 ,9 9 3 1 ,7 0 8 - 3 ,5 4 5 4 9 ,0 1 6 4 2 ,8 8 6 6 ,1 3 0 1 ,9 0 2 - 1 ,7 7 6 3 8 ,6 6 2 3 8 ,3 9 3 269 5 ,9 6 2 —5 ,2 4 6 2 5 ,1 1 7 1 9 ,6 5 5 5 ,4 6 2 O p eratin g e x p e n se s— T o t a l................................................................................ S a la ries a n d w a g e s o f officers an d e m p lo y e e s ................................... O fficer a n d e m p lo y e e b e n e fits ...................................................................... In te r e st p a id o n : T im e a n d sa v in g s d e p o s i t s ....................................................................... F e d e r a l fu n d s p u r c h a se d a n d secu ritie s s o ld w ith repur c h a s e a g r e e m e n t.................................................................................... O th e r b o r r o w e d m o n e y .............................................................................. C a p ita l n o te s a n d d e b e n tu r e s ................................................................. O cc u p a n c y e x p e n se o f b a n k p r e m ise s, n e t ........................................... F u rn itu re, e q u ip m e n t, e tc ............................................................................... P r o v isio n fo r lo a n lo s s e s ................................................................................. O th er o p e r a tin g e x p e n s e s ............................................................................... M e m o r a n d a ite m s : I n c o m e ta x e s a p p lic a b le t o 1 972 o p e r a tin g i n c o m e ....................... T a x e ffe c t o f : N e t se c u r itie s g a in s o r lo s s e s ( —) , e tc ............................................... T ra n sfers— C a p ita l a c c o u n ts to IR S lo a n lo ss reserv es2 . . . . T o ta l p ro v isio n f o r in c o m e ta x e s , 1 9 7 2 ..................................................... F e d e r a l.................................................................................................................. S ta te a n d l o c a l ................................................................................................. 1 3 ,4 8 0 1973 O p e ra tin g in co m e— T o t a l ..................................................................................... L o a n s: I n te r e s t a n d f e e s ............................................................................................. F e d e r a l fu n d s s o ld an d s e cu ritie s p u rch a sed w ith resale a g r e e m e n t................................................................................................. S e c u r itie s — In te r e st a n d d iv id e n d s : 1 U .S . T r e a su r y s e c u r it ie s ............................................................................ O th e r U .S . G o v t, secu rities (a g en cie s and c o r p o r a tio n s )___ O b lig a tio n s o f S ta te s a n d p o litic a l s u b d iv is io n s ...................... A ll o th e r s e c u r itie s ........................................................................................ T r u st d e p a r tm e n t i n c o m e .............................................................................. S e r v ic e c h a r g e s o n d e p o s it a c c o u n t s ....................................................... O th e r c h a r g e s, fe e s, e t c .................................................................................... O th er o p e r a tin g in c o m e : O n tra d in g a c c o u n t ( n e t ) ............................................. O th e r ...................................................................................................................... N ew Y ork BANKS, 1972 □ MAY (In co m e , etc . in th o u s a n d s , an d a sset a n d lia b ility ite m s in m illio n s , o f d o lla r s) M em o r a n d a ite m s (c o n t.): 3 0 ,6 4 4 2 ,0 1 7 8 ,4 0 7 - 2 ,0 2 8 3 9 ,3 4 1 5 ,1 8 7 8 ,8 6 8 365 3 8 ,7 7 1 5 ,9 7 6 6 ,6 5 1 1 ,141 6 1 ,2 0 8 1 3 ,2 6 6 9 ,5 1 4 -9 4 1 0 0 ,1 0 4 1 6 ,7 1 2 2 3 ,0 3 6 -5 3 8 2 0 ,7 7 3 2 ,2 1 4 4 ,7 4 0 911 2 0 ,9 0 8 3 ,6 2 2 1 ,3 8 1 6 86 3 6 ,8 3 4 7 ,4 5 1 5 ,9 0 0 -9 4 0 4 7 ,7 3 4 1 3 ,5 4 7 6 ,6 7 6 -2 4 7 4 9 ,9 7 7 7 ,3 5 5 9 ,5 8 7 3 ,4 2 6 1 2 1 ,6 3 1 128 8 ,4 2 5 3 1 ,4 0 9 3 1 ,5 1 7 824 1 2 9 ,2 5 2 - 2 3 ,1 1 7 3 0 8 ,2 6 7 3 ,3 8 0 1 7 ,2 6 7 6 6 ,3 8 7 7 0 ,5 9 7 2 ,3 0 4 3 2 2 ,4 0 1 - 5 3 ,3 2 6 1 2 2 ,3 1 3 956 4 ,4 6 3 2 0 ,1 0 7 1 6 ,1 9 1 717 1 3 0 ,9 3 1 - 1 1 ,7 2 5 1 3 1 ,4 0 0 470 9 ,3 8 3 3 1 ,2 8 7 2 5 ,7 6 8 1 ,5 3 9 1 4 5 ,2 3 2 -1 6 ,7 5 6 1 1 5 ,8 0 9 20 3 6 ,9 2 9 3 2 ,6 5 5 2 0 ,4 1 8 35 6 1 3 4 ,8 2 2 - 1 3 ,5 9 6 1 6 7 ,5 1 2 868 1 8 ,3 1 9 5 1 ,1 3 3 4 5 ,9 7 0 1 ,3 3 6 1 9 0 ,5 2 5 - 2 7 ,6 5 2 3 3 5 ,7 9 8 58 1 9 ,5 2 2 5 8 ,8 9 8 5 5 ,5 8 6 2 ,9 5 0 3 5 5 ,7 4 0 - 3 6 ,2 3 4 6 7 ,4 7 3 3 5 ,1 9 6 1 4 ,3 6 3 1 1 ,5 2 1 980 7 4 ,5 3 4 - 6 ,4 0 7 8 3 ,2 9 9 16 5 ,6 0 9 1 3 ,6 6 9 1 2 ,0 3 7 1,0 9 1 8 9 ,4 6 5 - 6 ,4 7 8 1 0 8 ,2 3 1 79 1 0 ,6 2 1 2 9 ,3 0 2 2 6 ,8 5 5 71 4 1 2 0 ,6 6 4 - 1 6 ,5 8 1 1 2 8 ,4 6 7 14 2 3 ,5 6 9 3 3 ,4 2 3 4 3 ,6 2 5 3 ,4 3 1 1 3 8 ,4 1 7 - 2 0 ,6 3 9 1 0 6 ,5 4 1 537 1 0 ,9 7 9 3 2 ,7 3 7 3 1 ,1 8 4 4 ,3 3 9 1 1 5 ,2 7 1 - 2 0 ,4 1 4 1 ,5 3 3 3 ,6 6 3 945 7 ,4 4 3 2 ,3 5 9 2 ,8 8 2 1 2 ,4 7 1 6 ,0 4 0 218 4 ,8 1 8 551 4 340 7 ,6 4 9 57 584 51 347 4 ,7 4 1 175 694 1 ,8 8 2 3 74 971 95 187 46 26 3 ,0 9 2 170 837 166 568 1 2 ,7 4 4 3 2 ,2 1 5 350 1 ,3 5 0 867 27 66 24 1 ,7 4 9 1 3 ,8 2 6 18 428 1 ,4 6 3 244 1 ,4 4 3 1 4 ,0 4 8 4 ,4 9 8 96 348 148 249 3 ,7 0 9 6 ,7 3 0 7 14 712 26 2 ,2 1 6 5 ,2 2 1 4 ,8 0 6 12 1 166 3 ,8 1 8 4 ,4 3 9 T o ta l n e t ch a n g es in c a p ita l a c c o u n ts............................................................. N e t in c o m e tra n sfe r r ed to u n d iv id e d p r o f it s ...................................... C o m m o n s to c k s o ld ( n e t ) .............................................................................. P r eferred s to c k , c a p ita l n o te s, an d d eb en tu res s o l d ....................... P r e m iu m r e c e iv e d o n n e w c a p ita l s to c k s o ld ...................................... T r a n s fe r s fr o m lo a n a n d secu ritie s r e se r v e s........................................ O th e r in c r e a s e s ..................................................................................................... D iv id e n d s d e c la r e d ............................................................................................ T r a n s fe r s to lo a n a n d se cu rity reserves (n et o f ta x e ffe c t). . . . O th e r d e c r e a s e s .................................................................................................... 5 3 ,4 7 8 1 0 3 ,5 1 7 2 ,1 8 3 5 ,5 2 9 1 ,0 0 9 1 ,1 7 4 6 ,6 5 3 5 2 ,3 8 4 4 .6 0 1 9 .6 0 1 2 4 6 ,4 2 1 2 8 6 ,6 7 2 2 6 ,6 0 5 5 5 ,0 0 0 1 9 ,8 8 6 2 ,5 5 3 4 3 ,9 5 3 1 3 9 ,6 2 1 1 1 ,4 8 9 3 7 ,1 3 7 1 0 3 ,8 9 4 1 2 3 ,7 1 9 3 ,1 9 5 1 3 ,9 5 5 1 0 ,6 8 0 741 1 8 ,7 1 1 5 3 ,3 3 0 5 ,4 6 3 8 ,3 1 4 1 3 8 ,1 9 7 1 5 8 ,6 3 2 2 ,5 4 2 2 0 ,2 0 7 5 ,9 2 7 3 ,7 5 5 1 5 ,2 5 6 5 2 ,2 1 1 8 ,1 9 2 7 ,7 1 9 1 2 4 ,8 6 2 1 3 9 ,9 6 3 7 ,1 4 5 5 ,4 9 6 1 3 ,6 4 5 573 3 3 ,8 9 3 5 2 ,2 1 3 8 ,2 9 3 1 5 ,3 4 7 2 5 4 ,3 4 0 2 2 6 ,0 8 4 2 8 ,0 3 8 1 7 ,2 7 9 5 0 ,8 0 4 1 ,6 7 6 2 8 ,9 0 1 6 7 ,1 0 3 1 0 ,0 3 0 2 1 ,3 0 8 3 0 9 ,2 7 7 3 2 2 ,1 9 2 1 2 ,3 3 0 5 3 ,5 7 7 1 5 ,1 3 6 4 ,3 9 3 3 1 ,3 2 4 1 0 1 ,3 6 4 1 2 ,4 4 9 1 5 ,8 6 2 7 7 ,9 6 9 8 6 ,6 5 7 4 ,1 4 6 5 ,0 8 6 3 ,4 4 8 1 ,3 2 7 1 0 ,2 6 0 2 4 ,6 3 2 4 ,4 6 9 3 ,8 5 4 7 3 ,4 3 5 8 1 ,8 4 1 2 ,1 2 5 1 5 ,4 8 9 1 ,2 3 4 1 ,4 6 5 7 ,7 4 3 2 7 ,3 3 1 3 ,9 5 7 5 ,1 7 4 1 2 1 ,7 7 6 1 4 8 ,0 0 6 3 ,2 8 7 7 ,8 3 5 4 ,7 6 5 740 1 7 ,0 0 5 4 4 ,6 1 3 6 ,0 5 0 9 ,1 9 9 1 4 2 ,8 1 6 1 4 5 ,5 4 0 9 ,1 3 4 1 4 ,0 0 0 1 3,3 2 1 3 ,9 9 9 2 3 ,6 8 0 4 0 ,4 9 6 5 ,6 6 0 2 0 ,7 0 1 1 5 1 ,5 8 6 1 0 4 ,0 6 5 1 2 ,0 5 1 7 3 ,3 5 5 6 ,8 3 1 8 ,1 5 7 8 ,4 0 3 3 3 ,0 6 0 8 ,7 2 4 1 9 ,4 9 2 A s s e t s , d e p o s its , a n d c a p ita l a ccounts: L o a n s g r o s s ( in c lu d in g F e d e r a l fu n d s s o ld an d resa le p u r c h a s e s) ............................................................................................................. U .S . T r e a su r y se c u r itie s 1.............................................................................. O th e r U .S . G o v t se cu ritie s (a g en cie s an d c o r p o r a tio n s) 1........... O b lig a tio n s o f S ta te s a n d p o litic a l su b d iv isio n s 1........................... A l l o th e r se c u r itie s 1 ........................................................................................ C a s h a s s e t s ............................................................................................................. T o t a l a s s e ts 5 ........................................................................................................ T im e a n d s a v in g s d e p o s i t s ............................................................... ............ T o t a l d e p o s i t s ....................................................................................................... T o t a l c a p ita l a c c o u n t s p lu s to ta l r e se r v e s ............................................ E q u ity c a p ita l p lu s to ta l r e se r v e s .............................................................. 8 ,0 5 4 887 207 1 ,9 2 9 87 1 ,9 1 3 1 3 ,5 4 3 5 ,3 9 1 1 1 ,5 4 7 1 ,1 3 3 1 ,0 9 5 1 8 ,3 5 2 3 ,0 0 6 1 ,2 3 3 6 ,0 2 3 327 3 ,9 8 5 3 3 ,9 6 2 1 6 ,1 9 3 2 9 ,3 4 9 2 ,7 9 9 2 ,6 5 7 7 ,7 4 1 1 ,5 3 2 532 2 ,2 9 1 22 8 1 ,4 6 7 1 4 ,1 4 4 7 ,7 8 6 1 2 ,4 5 5 1 ,2 0 1 1 ,1 7 6 9 ,2 5 5 2 ,4 9 7 51 6 2 ,5 4 3 122 1 ,9 1 2 1 7 ,2 6 6 9 ,2 3 9 1 5 ,1 8 4 1 ,4 9 6 1 ,4 6 5 8 ,2 7 0 1 ,341 606 1 ,9 9 5 57 1 ,8 1 4 1 4 ,5 4 0 6 ,8 8 8 1 2 ,5 8 9 1 ,1 8 4 1 ,1 4 2 1 1 ,9 2 4 2 ,4 1 9 1 ,0 2 3 3 ,6 5 6 130 3 ,6 0 1 2 3 ,5 2 1 1 0 ,4 3 3 2 0 ,5 7 8 1 ,8 6 5 1 ,8 1 4 2 0 ,5 0 6 4 ,7 5 3 1 ,7 8 4 5 ,3 2 5 519 4 ,3 9 2 3 8 ,3 2 4 2 1 ,4 9 7 3 4 ,0 1 0 2 ,9 9 3 2 ,8 9 1 4 ,7 7 8 1 ,3 6 8 563 1 ,2 9 2 50 1 ,2 6 4 9 ,5 6 1 4 ,6 2 1 8 ,5 1 4 799 7 86 5 ,3 5 0 1 ,3 7 7 388 1 ,3 3 2 29 1 ,0 6 9 9 ,7 7 5 5 ,5 3 2 8 ,6 7 7 745 705 8 ,1 8 7 1 ,8 6 2 515 2 ,0 8 1 57 2 ,2 0 7 1 5 ,3 0 7 6 ,8 2 6 1 3 ,3 0 1 1 ,2 9 0 1 ,2 5 7 8 ,2 8 1 1 ,5 7 4 756 2 ,2 8 2 92 2 ,6 0 9 1 6 ,0 9 4 6 ,9 7 1 1 4 ,1 8 5 1 ,3 0 1 1 ,2 7 2 7 ,7 5 8 1 ,2 1 0 434 1 ,7 8 2 55 1 ,691 1 3 ,5 3 6 6 ,7 7 9 1 1 ,6 4 7 9 79 8 74 N u m b e r o f o ffic er s a n d e m p lo y e e s ............................................................... N u m b e r o f b a n k s .................................................................................................... 2 7 ,5 7 6 215 5 3 ,7 1 5 318 2 1 ,6 8 1 2 88 2 7 ,7 1 5 447 2 8 ,7 8 1 348 4 1 ,2 5 6 555 5 7 ,1 7 1 915 14 ,5 0 1 415 1 3 ,9 6 5 490 2 4 ,5 0 8 795 2 5 ,5 0 9 616 2 9 ,4 0 1 124 E x tr a o r d in a ry c h a r g e s ( —) o r cred its b e fo re in c o m e t a x ............ R e s e r v e s fo r lo s s e s o n l o a n s : 3 R e s e r v e s o n s e c u r it ie s : c lu d ed in th e tim e d e p o sit figures u sed in th is tab le. T h e n u m b er o f o fficers an d e m p lo y e e s is as o f th e en d o f year. C a sh a ssets c o m p rise c a sh , b a la n ces w ith oth er b a n k s (in clu d in g reserve b a la n ces), an d ca sh item s in p rocess o f c o l lec tio n . E q u ity ca p ital an d reserves in clu d e c o m m o n and preferred s to c k , su rp lu s, u n d iv id ed profits p lu s reserves for c o n tin g e n c ie s, o th e r ca p ita l reserves, and reserves o n lo a n s an d secu rities. T o ta l ca p ita l a cco u n ts in clu d e eq u ity c a p ita l a n d c a p ita l n o te s and d eb en tu res. D e ta ils m a y n o t ad d to to ta ls b e c a u se o f ro u n d in g . A 103 b a n k s n o t o n a reserve a c c o u n tin g m e th o d an d th e ex c ess o f lo sse s ch a rg ed aga in st reserve for lo sse s o n lo a n s o v er re c o v e rie s cred ited to th e se reserves for b a n k s o n a reserve a c c o u n tin g m eth o d . 5 In clu d in g tra d in g a c c o u n t secu rities. N ote .— F igu res ex c lu d e o n e m em b er b a n k lo ca te d o u tsid e th e c o n tin e n ta l U n ite d S ta tes. B a la n ce sh e e t figures sh o w n w ere o b ta in ed b y a v eragin g th e a m o u n ts sh o w n in e a c h b a n k ’s official c o n d itio n rep orts su b m itted fo r D e c e m b e r 31, 1971, Ju n e 3 0 a n d D e c e m b e r 31, 1972. S a v in g s d e p o sits are in BANKS, 1972 1 E x c lu d in g tra d in g a c c o u n t secu rities. 2 P r io r to 1969 tra n sfers to IR S reserve for b ad d eb t losses o n lo a n s w ere d e d u c te d fro m op era tin g in c o m e ; b eginnin g in 1 9 6 9 , w ith in p rescrib ed lim its, b a n k s m a y d ed u ct all or p art o f th e tra n sfers to th is reserve fro m in c o m e and treat th e b a la n c e , i f a n y , as a tran sfer fro m ca p ita l a c c o u n ts. (T hese tra n sfers are e x e m p t fro m F ed era l in c o m e ta x es.) 3 In c lu d e s reserv e fo r b ad d eb t lo sse s an d oth er reserves on lo a n s. 4 S u m o f th e e x p e n se ite m “ p r o v isio n for lo a n lo ss e s ” for 21 8 1973 □ MEMBER 1 0 2 ,6 9 4 8 ,2 9 9 9 ,7 2 9 - 1 ,4 4 1 MAY 5 0 ,5 6 7 6 ,1 1 6 3 ,1 7 1 57 A 104 MEMBER INCOME, EXPENSES, AND DIVIDENDS, BY SIZE OF BANK (A m o u n ts in th o u s a n d s o f d o lla r s) S iz e g r o u p — T o ta l d e p o s its (in th o u s a n d s o f d o lla r s ) L e s s th a n 2 ,0 0 0 2 ,0 0 0 5 ,0 0 0 5 ,0 0 0 1 0 ,0 0 0 1 0 ,0 0 0 2 5 ,0 0 0 2 5 ,0 0 0 5 0 ,0 0 0 5 0 ,0 0 0 1 0 0 ,0 0 0 1 0 0 ,0 0 0 5 0 0 ,0 0 0 5 0 0 ,0 0 0 or m ore 6 ,6 9 4 1 2 4 ,2 1 5 5 3 5 ,2 5 2 1 ,9 7 7 ,6 4 6 2 ,1 5 2 ,6 4 6 2 , 2 0 9 ,1 3 1 5 , 6 3 1 ,7 1 2 1 8 ,6 8 6 ,3 9 7 1 9 ,9 9 0 ,3 3 6 3 ,9 2 5 7 2 ,5 6 9 3 2 0 ,6 7 0 1 ,2 1 1 ,9 3 1 1 ,3 4 4 ,5 8 1 1 ,3 8 2 ,8 4 0 3 , 5 1 1 ,6 5 5 1 2 ,1 4 2 ,1 6 5 5 ,1 0 4 2 0 ,5 5 1 6 6 ,9 1 9 5 7 ,2 0 6 5 1 ,4 8 0 1 2 8 ,4 3 0 4 6 2 ,6 8 2 22 9 127 2 2 ,5 1 8 8 ,1 7 7 6 ,4 3 6 997 128 4 ,4 5 6 2 ,2 6 5 8 0 ,6 5 2 2 9 ,2 6 0 4 1 ,2 0 3 3 ,8 7 1 681 2 1 ,5 3 4 9 ,4 1 0 2 5 3 ,7 2 4 9 5 ,0 3 9 1 8 5 ,3 3 4 1 3 ,6 3 4 6 ,3 9 4 8 3 ,8 9 3 3 6 ,5 6 7 2 3 1 ,3 3 7 9 8 ,7 5 1 2 1 6 ,3 5 6 1 7 ,4 6 8 2 4 ,8 9 8 8 5 ,6 4 6 4 5 ,5 4 7 2 2 0 ,1 8 6 9 2 ,1 0 4 2 2 4 ,5 4 3 2 2 ,6 4 6 4 3 ,5 2 2 8 1 ,5 9 4 4 6 ,0 6 3 4 6 0 ,9 7 2 1 9 4 ,4 5 2 5 3 9 ,5 1 4 5 5 ,0 0 5 2 2 2 ,1 3 4 1 8 0 ,2 4 6 1 7 5 ,4 6 5 1 ,1 3 9 ,8 2 0 2 1 1 ,3 8 3 1 ,4 9 4 ,9 8 8 1 2 0 ,0 1 0 9 7 1 ,1 3 4 4 4 6 ,2 3 2 5 4 7 ,9 4 6 2 5 4 ,1 6 8 1 ,1 6 8 ,0 5 8 140 1 ,5 6 6 14 7 ,4 0 7 39 2 4 ,1 7 2 3 0 ,8 5 8 54 7 4 3 ,6 0 6 1 4 ,5 7 8 1 4 9 ,2 6 2 2 3 8 ,9 9 0 9 1 1 ,0 4 8 Operating expenses—T otal..................................................................... Salaries and wages o f officers and employees................................ Officer and employee benefits............................................................ Interest paid on: Time and savings deposits............................................................. Federal funds purchased and securities sold with repurchase agreement....................................................................................... Other borrowed m oney................................................................... Capital notes and debentures........................................................ Occupancy expense o f bank premises, n et..................................... Furniture, equipment, etc................................................................... Provision for loan lo sses..................................................................... Other operating expenses.................................................................... 2 5 ,6 2 6 ,1 2 4 6 , 0 1 6 ,8 3 4 1 ,0 7 2 ,6 6 0 5 ,4 7 1 1 ,9 5 3 182 1 0 3 ,5 0 4 2 9 ,0 4 2 3 ,0 7 9 4 3 8 ,2 3 9 1 0 6 ,9 2 3 1 3 ,7 5 7 1 , 6 1 3 ,9 7 1 3 6 0 ,4 3 2 5 2 ,7 1 7 1 , 7 6 4 ,4 2 4 3 8 5 ,7 5 3 6 0 ,7 8 5 4 ,6 5 0 ,1 3 0 1 ,0 9 0 ,0 6 7 1 8 8 ,0 1 7 1 5 ,2 2 2 ,8 6 4 3 ,6 3 4 ,7 2 2 6 8 7 ,4 9 9 1 0 ,5 0 9 ,7 0 6 1 ,6 7 1 4 4 ,5 1 4 2 0 6 ,8 0 1 7 9 0 ,0 8 0 8 5 2 ,2 5 9 8 6 5 ,2 9 4 1 ,9 6 4 ,7 1 5 5 , 7 8 4 ,3 7 2 1 ,3 8 7 ,2 0 4 1 0 2 ,0 6 2 1 8 3 ,5 4 8 1 ,2 5 8 ,4 2 0 8 4 7 ,2 2 0 7 6 6 ,2 9 7 3 ,4 8 2 ,1 7 3 13 4 1 2 39 203 181 1 ,0 2 3 129 108 22 3 ,7 7 4 3 ,1 3 9 3 ,3 4 7 1 6 ,3 5 1 660 214 224 1 5 ,8 7 7 1 3 ,9 0 7 1 2 ,1 6 6 6 7 ,7 1 0 3 ,0 5 8 1 ,4 3 8 2 ,1 3 0 6 3 ,8 9 8 5 2 ,6 0 0 4 0 ,6 1 4 2 4 7 ,0 0 5 8 ,0 1 2 2 ,0 5 7 4 ,3 0 9 7 5 ,3 1 7 6 0 ,9 5 1 4 4 ,3 9 3 2 7 0 ,5 8 7 1 6 ,4 2 6 2 ,2 7 2 6 ,6 1 5 8 5 ,4 2 3 6 5 ,3 2 6 4 0 ,4 6 0 2 7 1 ,1 3 8 1 5 2 ,2 6 4 9 ,0 6 6 2 3 ,0 2 4 2 2 5 ,3 4 4 1 8 9 ,9 7 7 1 1 9 ,5 0 9 6 8 8 ,1 4 7 1 ,2 0 6 ,6 4 2 8 6 ,9 0 3 1 4 7 ,2 2 3 7 8 8 ,5 4 8 4 6 1 ,1 1 6 5 0 5 ,6 2 7 1 ,9 2 0 ,2 1 3 Income before income taxes and securities gains or losses............... Applicable income taxes...................................................................... Income before securities gains or losses.......................................... Net securities gains or losses ( —) after taxes................................ Extraordinary charges ( —) or credits after taxes......................... Less minority interest in consolidated subsidiaries...................... 5 ,6 9 7 ,5 6 9 1 ,3 5 6 ,0 3 9 4 ,3 4 1 ,5 3 0 4 6 ,4 5 0 1 3 ,7 8 1 370 1 ,2 2 4 291 933 8 -9 2 0 ,7 1 1 5 ,3 1 1 1 5 ,4 0 0 415 114 9 7 ,0 1 3 2 3 ,2 2 0 7 3 ,7 9 3 2 ,7 0 1 309 1 3 6 3 ,6 7 5 8 3 ,1 3 5 2 8 0 ,5 3 9 1 1 ,9 0 5 1 ,1 4 2 6 3 8 8 ,2 2 2 8 2 ,7 6 9 3 0 5 ,4 5 3 1 1 ,8 9 6 316 43 3 8 1 ,6 1 0 7 7 ,3 3 3 3 0 4 ,2 7 7 1 0 ,8 9 0 1 ,0 8 2 9 8 1 ,5 8 2 2 1 0 ,1 9 5 7 7 1 ,3 8 7 2 0 ,1 1 4 - 1 ,3 0 8 52 3 , 4 6 3 ,5 3 2 8 7 3 ,7 8 5 2 , 5 8 9 ,7 4 8 - 1 1 ,4 7 7 1 2 ,1 3 8 269 Net income................................................................................................... 4 ,4 0 1 ,3 9 2 931 1 5 ,9 2 9 7 6 ,8 0 2 2 9 3 ,5 8 0 3 1 7 ,6 2 2 3 1 6 ,2 5 0 7 9 0 ,1 4 0 2 ,5 9 0 ,1 3 8 Cash dividends declared: On common stock................................................................................. On preferred sto ck ................................................................................ 1 ,8 3 6 ,2 8 9 2 ,8 5 9 317 4 ,9 4 2 1 9 ,6 9 2 10 7 6 ,2 0 3 92 9 5 ,7 6 3 191 1 0 2 ,9 8 8 118 3 1 7 ,6 9 4 668 1 ,2 1 8 ,6 9 2 1 ,7 8 0 1 ,3 5 6 ,0 3 9 291 5 ,3 1 1 2 3 ,2 2 0 8 3 ,1 3 5 8 2 ,7 6 9 7 7 ,3 3 3 2 1 0 ,1 9 5 8 7 3 ,7 8 5 5 6 ,6 0 2 - 1 5 2 ,6 7 8 1 ,2 5 9 ,9 6 3 9 9 9 ,1 0 7 2 6 0 ,8 5 6 23 -4 310 285 25 143 -2 5 4 5 ,2 0 0 4 ,7 1 6 484 1 ,2 0 1 - 1 ,6 0 9 2 2 ,8 1 2 2 0 ,4 8 6 2 ,3 2 6 6 ,6 8 7 - 7 ,7 9 4 8 2 ,0 2 8 7 3 ,1 2 1 8 ,9 0 7 7 ,2 8 9 - 9 ,6 6 1 8 0 ,3 9 7 7 0 ,8 9 7 9 ,5 0 0 7 ,7 5 7 - 9 ,9 5 2 7 5 ,1 3 8 6 3 ,9 7 7 1 1 ,1 6 1 1 3 ,6 3 5 - 2 6 ,1 8 2 1 9 7 ,6 4 8 1 6 6 ,0 3 8 3 1 ,6 1 0 1 9 ,8 6 9 - 9 7 ,2 2 3 7 9 6 ,4 3 0 5 9 9 ,5 8 7 1 9 6 ,8 4 3 L oans: Interest and fees................................................................................ Federal funds sold and securities purchased with resale agreement................................................................................... Securities—Interest and dividends:2 U.S. Treasury securities.................................................................. Other U.S. Govt, securities (agencies and corporations) Obligations o f States and political subdivisions..................... All other securities........................................................................... Trust department incom e.................................................................... Service charges on deposit accounts................................................ Other charges, fees, etc........................................................................ Other operating incom e: On trading account (n et)................................................................ Other.................................................................................................... Memoranda item s: Income taxes applicable to 1972 operating incom e..................... Tax effect o f : Net securities gains or losses ( —), etc......................................... Transfers—Capital accounts to IRS loan loss reserves 3. . . . Total provision fo r income taxes, 1972............................................ Federal................................................................................................ State and local................................................................................... 7 9 2 ,7 0 8 2 ,4 1 0 ,5 6 0 7 2 9 ,5 1 2 2 ,7 0 8 ,5 4 5 2 3 3 ,6 9 8 1 ,2 6 8 ,8 9 0 9 0 3 ,8 3 0 8 6 3 ,3 8 9 3 37 1 ,3 5 3 3 46 171 67 1 ,8 2 7 ,5 2 1 4 0 7 ,9 4 2 6 6 ,6 2 5 1973 3 1 ,3 2 3 ,6 9 2 Operating income—T otal........................................................................ BANKS, 1972 □ MAY T o ta l i M e m o r a n d a ite m s ( c o n t.) : N e t s e c u r itie s g a in s o r lo ss e s ( —) b e fo re in c o m e t a x e s .................. E x tr a o r d in a ry c h a r g e s ( —) or cred its b e fo re in c o m e t a x ................ R e s e r v e s fo r lo s s e s o n l o a n s : 4 B a la n c e a t b eg in n in g o f y e a r ....................................................................... A d d itio n s d u e to m ergers and a b so r p tio n s................................... R e c o v e r ie s c red ited to r e se r v e s ............................................................ L o s s e s ch a rg ed to r e se r v e s...................................................................... T ra n sfers fr o m r e s e r v e s ........................................................................... N e t lo a n lo s s e s ( —) o r r eco v eries 5 ............................................................ R e se r v e s o n s e c u r itie s : B a la n ce a t begin n in g o f y e a r ........................................................................ B a la n ce a t e n d o f y e a r .................................................................................... 1 ,5 5 4 ,5 2 2 2 9 6 ,1 0 3 251 12 4 ,0 4 3 270 1 7 ,1 7 4 1 ,2 9 7 6 9 ,4 1 2 5 ,5 1 4 8 5 ,3 1 9 1 0 ,0 0 2 1 0 1 ,1 9 6 1 5 ,7 7 3 2 8 9 ,6 3 0 6 4 ,2 8 6 9 8 7 ,4 9 7 1 9 8 ,9 4 8 9 9 ,4 5 5 1 7 ,3 7 9 10 12 505 166 3 ,9 6 1 250 1 8 ,2 0 3 1 ,5 3 0 1 9 ,0 4 2 45 8 1 9 ,1 3 1 598 3 6 ,6 7 7 - 4 ,2 3 7 1 .9 2 5 1 8 ,6 0 3 5 , 2 3 5 ,0 1 4 1 5 ,9 1 5 2 9 2 ,8 7 9 1 ,1 0 5 ,9 8 4 1 ,0 0 7 ,3 8 6 4 7 ,9 1 7 5 , 5 9 4 ,4 9 0 - 7 1 6 ,4 5 2 352 9 ,0 5 7 111 117 178 59 341 -1 5 2 1 ,5 7 3 4 ,0 6 2 4 ,0 4 1 78 1 0 ,5 7 2 - 2 ,8 3 0 5 1 ,2 6 2 881 7 ,6 5 7 1 7 ,9 6 5 1 8 ,4 3 5 1 ,3 6 4 5 7 ,9 6 5 - 1 1 ,1 7 5 2 1 7 ,5 6 6 426 2 6 ,2 7 6 6 1 ,4 8 9 5 8 ,1 5 8 2 ,4 3 9 2 4 5 ,1 6 1 - 3 2 ,9 8 2 2 6 9 ,5 1 4 391 2 6 ,3 8 4 6 9 ,4 9 4 6 4 ,9 1 6 3 ,4 8 9 2 9 7 ,3 7 8 - 3 8 ,5 3 1 3 0 2 ,8 2 5 1 ,2 4 0 2 1 ,6 0 8 6 3 ,4 6 8 5 6 ,6 9 4 3 ,7 8 7 3 2 8 ,6 6 0 - 3 5 ,0 8 5 8 2 6 ,0 1 0 3 ,7 7 3 5 1 ,3 8 9 17 4 ,6 0 8 1 6 2 ,1 8 8 1 0 ,7 9 8 8 8 2 ,7 9 4 - 1 1 0 ,7 9 8 3 ,5 5 8 ,4 3 0 9 ,2 0 5 1 5 7 ,8 8 3 7 1 4 ,7 8 2 6 4 2 ,7 7 5 2 5 ,9 0 5 3 ,7 7 1 ,6 2 0 - 4 8 4 ,8 9 1 3 251 2 ,9 5 3 8 425 28 2 1 ,8 3 4 858 1 ,6 6 3 1 6 ,1 5 3 9 ,3 3 9 1 643 1 ,0 4 7 1 ,4 9 6 8 66 8 ,6 7 4 3 5 ,5 1 0 12 844 3 ,9 4 7 21 6 ,9 4 8 3 3 ,3 4 3 4 9 ,6 9 4 84 2 67 87 157 3 ,0 6 1 8 ,9 1 8 18 27 8 26 188 861 8 ,7 3 9 1 6 ,5 5 8 178 4 6 6 ,7 8 4 7 6 ,8 0 2 3 ,0 9 6 3 ,4 6 5 5 ,7 1 4 1 ,5 2 1 1 1 ,3 5 5 1 9 ,7 0 1 4 ,8 6 7 1 0 ,6 0 1 2 7 7 ,3 1 8 2 9 3 ,5 8 0 1 4 ,7 0 8 1 9 ,9 5 2 2 4 ,2 0 2 3 ,3 0 0 3 8 ,6 1 4 7 6 ,2 9 5 1 5 ,2 6 9 2 5 ,4 7 5 2 9 5 ,3 4 2 3 1 7 ,6 2 2 1 5 ,1 4 4 3 2 ,2 1 0 2 7 ,8 1 7 5 ,1 5 2 4 0 ,8 4 4 9 5 ,9 5 4 1 7 ,5 6 7 2 9 ,9 2 5 3 0 7 ,5 4 2 3 1 6 ,2 5 0 1 5 ,4 8 2 3 5 ,5 9 3 2 5 ,7 8 0 4 ,6 5 3 4 5 ,3 7 3 1 0 3 ,1 0 6 1 3 ,7 8 3 1 8 ,7 0 1 6 8 5 ,2 2 4 7 9 0 ,1 4 0 2 9 ,9 2 0 1 3 3 ,4 8 7 4 4 ,1 2 5 1 7 ,7 4 6 9 3 ,5 7 3 3 1 8 ,3 6 1 3 3 ,5 4 7 7 1 ,8 5 8 2 ,4 8 9 ,1 0 2 2 ,5 9 0 ,1 3 8 3 6 9 ,6 5 4 6 3 2 ,6 3 9 1 8 3 ,2 5 1 2 9 ,5 0 9 5 2 9 ,0 2 0 1 ,2 2 0 ,4 7 2 1 2 0 ,0 1 9 5 0 4 ,6 1 8 1 2 3 ,2 2 5 36 2 ,3 1 5 1 3 ,6 4 9 3 ,6 9 3 1 4 ,1 0 8 1 2 1 ,4 2 5 3 258 5 ,7 2 4 1 ,0 4 4 3 ,6 0 5 5 1 ,0 2 7 59 105 317 -5 114 1 2 ,5 2 4 1 5 ,9 2 9 893 530 1 ,0 8 3 86 1 ,8 4 1 4 ,9 4 2 859 2 ,0 3 6 A s s e t s , d e p o s its , an d c a p ita l a cco u n ts: L o a n s g r o s s (in c lu d e s F e d e r a l fu n d s s o ld and resa le p u r c h a s e s ). . U .S . T r e a su r y s e c u r it ie s 2 .................................................................................. O th e r U .S . G o v t, se c u r itie s (a g en cie s and c o r p o r a tio n s )2 ............. O b lig a tio n s o f S ta te s a n d p o litic a l s u b d iv isio n s 2 ............................. A ll o th e r s e c u r it ie s 2 ............................................................................................. C a s h a s s e t s ................................................................................................................. T o t a l a s s e ts 6 ........................................................................................................... T im e a n d s a v in g s d e p o s it s ............................................................................... T o ta l d e p o s its ........................................................................................................... T o ta l c a p ita l a c c o u n ts p lu s to ta l r e se r v e s ............................................... E q u ity c a p ita l p lu s to ta l r e se r v e s ................................................................. 3 2 9 ,6 8 0 ,4 9 3 4 6 , 0 8 5 ,9 4 3 1 3 ,2 6 9 ,3 4 2 6 7 ,7 7 8 ,6 5 8 3 ,9 3 9 ,1 8 8 9 6 ,5 0 8 ,1 5 0 5 8 5 ,0 8 8 ,4 2 8 2 4 3 ,5 4 4 ,9 7 2 4 8 2 ,1 7 7 ,2 3 6 4 6 , 8 6 4 ,8 5 2 4 3 , 3 5 3 ,9 1 4 6 0 ,5 8 8 2 6 ,7 9 0 6 ,5 6 1 4 ,2 2 5 1 ,0 4 4 1 7 ,4 4 7 1 1 9 ,2 0 6 3 9 ,8 7 9 1 0 3 ,5 8 9 1 4 ,0 0 5 1 3 ,9 8 9 1 , 1 2 5 ,1 4 7 4 2 8 ,6 1 4 1 5 4 ,0 3 0 1 5 7 ,8 9 8 1 3 ,0 5 7 2 9 2 ,5 4 2 2 , 2 0 5 ,1 8 9 1 ,0 2 4 ,4 4 9 1 ,9 6 5 ,9 7 5 2 0 9 ,7 0 4 2 0 8 ,8 8 9 4 ,9 4 5 ,2 3 0 1 ,5 0 2 ,3 7 2 5 6 6 ,6 7 5 1 ,0 1 6 ,6 7 2 6 6 ,7 0 0 1 ,1 1 8 ,8 9 8 9 , 3 8 6 ,6 3 0 4 ,7 1 1 ,6 3 5 8 ,4 1 2 ,9 0 5 8 1 2 ,4 7 0 8 0 6 ,9 3 0 1 8 ,3 2 4 ,1 0 6 4 , 6 9 0 ,1 6 4 1 ,7 8 9 ,3 3 9 4 ,6 3 2 ,5 5 1 2 5 7 ,0 2 7 4 ,0 0 9 ,0 2 2 3 4 ,4 5 1 ,7 6 2 1 7 ,9 2 5 ,3 4 0 3 0 , 9 2 2 ,1 3 4 2 ,7 5 0 ,0 3 8 2 ,7 0 9 ,5 6 9 2 0 ,2 6 0 ,4 4 8 4 ,2 2 2 ,8 7 2 1 ,7 4 9 ,5 7 1 5 ,2 7 3 ,4 8 8 2 8 6 ,3 9 0 4 , 3 8 4 ,9 6 2 3 7 ,2 0 2 ,0 7 5 1 9 ,2 0 2 ,2 9 1 3 3 ,0 5 8 ,7 5 3 2 , 9 7 5 ,0 2 4 2 ,8 9 3 ,6 2 4 2 0 ,9 9 7 ,6 5 6 4 , 0 4 4 ,5 6 3 1 , 5 7 7 ,2 6 0 5 ,6 5 0 ,4 2 5 3 6 2 ,9 5 8 4 , 8 0 9 ,7 9 8 3 8 ,5 7 6 ,4 6 1 1 9 ,6 0 2 ,6 4 3 3 4 ,1 8 0 ,3 0 5 3 ,0 3 0 ,2 2 9 2 , 9 0 9 ,3 1 1 5 5 ,2 5 8 ,2 8 6 8 ,9 0 7 ,3 1 3 3 ,3 6 8 ,0 0 9 1 3 ,9 2 0 ,7 7 1 8 5 0 ,2 8 5 1 4 ,6 6 5 ,1 1 2 1 0 0 ,3 1 7 ,8 9 4 4 5 ,2 5 5 ,7 0 7 8 6 ,1 3 1 ,3 7 4 7 , 8 6 7 ,4 7 4 7 , 4 5 9 ,0 7 4 2 0 8 ,7 0 9 ,0 3 2 2 2 ,2 6 3 ,2 5 5 4 ,0 5 7 ,8 9 7 3 7 ,1 2 2 ,6 2 8 2 , 1 0 1 ,7 2 7 6 7 ,2 1 0 ,3 6 9 3 6 2 ,8 2 9 ,2 1 1 1 3 5 ,7 8 3 ,0 2 8 2 8 7 ,4 0 2 ,2 0 1 2 9 ,2 0 5 ,9 0 8 2 6 ,3 5 2 ,5 2 8 N u m b e r o f o fficers a n d e m p lo y e e s ................................................................... N u m b e r o f b a n k s ....................................................................................................... 7 7 2 ,3 3 6 5 ,6 3 9 382 69 4 ,4 7 7 535 1 5 ,4 3 9 1 ,1 2 8 5 3 ,5 4 7 1 ,9 2 4 5 7 ,5 4 3 939 6 0 ,0 6 2 492 1 5 0 ,5 8 2 403 4 3 0 ,3 0 4 149 P referred s to c k , c a p ita l n o te s, and deb en tu res s o ld ............................ P r e m iu m re ce iv e d o n n e w ca p ita l sto c k s o l d ......................................... D iv id e n d s d e c la r e d ............................................................................................... T ra n sfers to lo a n a n d se cu ritie s reserves (n et o f tax e ffect).......... N ote .— T h e figures fo r a ssets, d ep o sits, ca p ita l a c c o u n ts, n u m b er o f officers and e m p lo y ees, an d n u m b er o f b a n k s are as o f th e en d o f th e year. D e ta ils m ay n o t a d d to to ta ls b eca u se o f rou n d in g . A 105 5 Su m o f th e ex p en se item “ p ro v isio n fo r lo a n lo ss e s ” for b a n k s n o t o n a reserve a cco u n tin g m eth o d an d th e ex cess o f lo sse s ch arged a g a in st reserve for lo sse s o n lo a n s over recoveries cred ited to th e se reserves for b an k s o n a reserve a c c o u n tin g m eth o d . 6 In clu d in g trad in g a c c o u n t secu rities. BANKS, 1972 1 T o t a l is fo r b a n k s o p era tin g during th e entire year, ex cep t th a t o n e b a n k lo ca te d o u tsid e th e c o n tin e n ta l U n ite d S ta tes is ex clu d ed . 2 E x c lu d in g trad in g a c c o u n t secu rities. 3 P rio r to 1969 a ll tran sfers to IR S reserve fo r bad debt lo ss e s o n lo a n s w ere d e d u cted fro m in c o m e ; b e g in n in g in 1969 w ith in prescribed lim its, bank s m a y d e d u c t all o r p art o f th e tran s fers to th is reserve fro m in c o m e and treat th e b a la n ce, i f any, as a tran sfer fro m ca p ita l a c c o u n ts. (T h e se tran sfers are e x e m p t from F ed eral in c o m e taxes.) 4 In c lu d e s reserve fo r b a d d eb t lo sses an d oth er reserves o n lo a n s. 1973 □ MEMBER 6 73 931 3 MAY 4 , 1 3 4 ,5 0 9 4 , 4 0 1 ,3 9 2 4 4 8 ,8 9 9 8 5 7 ,8 7 6 3 1 1 ,9 7 3 6 2 ,0 2 5 7 6 0 ,7 2 5 1 ,8 3 9 ,1 4 8 2 0 5 ,9 0 6 6 6 3 ,3 2 7 N e t in c o m e tra n sferred to u n d iv id ed p r o fits.......................................... A 106 INCOME RATIOS BY CLASS OF MEMBER BANK, AND FOR ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Large Item Summary ratios: Percentage o f equity capital plus all reserves: Income after taxes and before securities gains City of Chi cago All member banks Bos ton New York Phila del phia Cleve land Rich mond At lanta Chi cago St. Louis Min neap olis Kan sas City D al las San Fran cisco Other 9.89 9.68 5.87 10.24 10.23 4.95 10.86 11.24 4.01 10.38 10.54 4.40 9.33 9.45 5.10 9.92 10.03 4.25 10.76 11.05 5.15 9.93 10.23 4.11 11.43 11.67 4.54 11.55 11.86 4.19 10.12 9.90 4.37 9.97 10.41 3.87 11.42 11.74 4.31 11.21 11.51 4.58 11.10 11.43 4.01 10.35 10.57 4.76 Percentage o f net income: Cash dividends paid.......................................................... 39.30 60.68 48.46 35.72 41.80 54.00 42.35 46.62 40.25 38.90 35.34 44.20 37.19 36.70 39.79 35.13 45.01 Sources and disposition of income: Percentage o f total assets: Total operating expenses................................................. Salaries, wages, and fringe benefits.......................... Interest on time and savings deposits...................... Occupancy expense o f bank premises, net............. All other operating expenses..................................... Total operating incom e.................................................... Income after taxes and before securities gains 4.00 1.23 1.28 .25 1.24 5.10 4.38 1.06 1.79 .21 1.32 5.52 4.79 1.33 1.87 .22 1.37 5.78 5.02 1.34 2.29 .23 1.16 6.09 4.72 1.30 1.93 .23 1.26 5.77 4.93 1.65 1.52 .32 1.44 6.02 4.25 1.27 1.51 .26 1.21 5.32 4.82 1.27 2.11 .21 1.23 5.84 4.72 1.16 2.14 .20 1.22 5.81 5.03 1.52 1.96 .24 1.31 6.21 4.99 1.41 1.89 .20 1.49 6.18 4.77 1.16 2.25 .21 1.15 5.76 4.53 1.17 1.92 . 19 1.25 5.57 4.85 1.14 2.36 . 15 1.20 6.05 4.79 1.28 1.96 . 18 1.37 6.00 4.43 1.07 1.84 . 13 1.39 5.54 5.21 1.51 2.21 .27 1.22 6.09 .79 .80 .88 .86 .73 .73 .84 .87 .79 .81 .76 .77 .80 .81 .84 .87 .89 .92 .89 .90 .90 .92 .77 .76 .80 .83 .82 .84 .89 .92 .84 .86 .64 .65 64.67 66.09 68.49 65.13 66.35 66.76 64.90 67.58 64.51 69.05 65.78 64.66 64.41 66.78 66.92 68.29 69.03 6.01 6.47 9.85 7.69 5.75 6.06 7.54 10.44 7.22 8.10 9.13 10.54 9.97 9.49 7.35 6.66 .79 9.46 .70 .54 7.54 8.87 1.37 7.83 .62 2.86 4.33 8.03 3.95 9.95 .87 3.65 2.17 4.43 2.32 8.64 .74 2.88 4.04 7.34 1.69 7.99 .63 3.00 7.41 6.77 1.54 8.28 .78 2.12 6.07 10.25 2.37 9.56 1.25 2.46 4.01 5.23 2.23 10.57 1.00 2.41 4.06 4.78 3.04 9.25 .33 3.20 2.90 5.01 3.00 9.51 .76 3.98 2.75 6.12 2.81 9.18 1.17 2.15 3.95 6.95 3.91 8.95 .69 2.73 2 .60 6.17 2.97 8.17 .27 2.96 2.51 6.37 2.36 8.94 .45 3.49 3.00 5.35 2.92 9.51 . 56 3.11 2.90 5.36 2.01 6.79 .43 4.06 2.65 8.37 100.00 100.00 100.00 N et incom e......................................................................... Percentage o f total operating income: Interest, fees, and other loan incom e2 ........................ Securities—Interest and dividends:3 U.S. Treasury securities.............................................. Other U.S. Govt, securities (agencies and cor porations) ................................................................... Obligations o f States and political subdivisions. . All other securities........................................................ Service charges on deposit accounts............................ Trust department incom e............................................... All other operating income............................................. 5.20 .61 6.82 .68 1.48 7.49 13.05 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 19.81 4.34 16.07 3.21 19.64 3.38 18.90 3.13 19.21 3.42 23.16 4.35 19.80 4.15 18.25 3.56 17.31 2.68 20.91 3.54 19.67 3.27 17.15 3.05 18.03 2.96 16.03 2.83 18.58 2.78 16.77 2.53 21.31 3.46 All other operating expenses......................................... 25.27 7.65 .99 5.01 3.17 12.19 32.56 10.91 .27 3.88 2.77 9.81 32.48 6.70 .77 3.86 2.51 13.54 37.66 1.36 .30 3.79 2.08 15.18 33.55 4.75 .58 4.01 2.44 13.87 25.33 4.95 .36 5.35 2.74 15.68 28.48 6.19 .80 4.90 2.93 12.79 36.20 4.15 .99 3.70 1.94 13.81 36.92 4.00 .25 3.47 2.16 14.58 31.53 2.38 .54 3.95 1.83 16.27 30.69 3.87 .32 3.37 2.64 16.92 39.15 5.04 .46 3.78 1.98 12.21 34.42 4.23 .33 3.47 2.20 15.71 39.13 3.84 .70 2.53 1.35 13.78 32.72 3.39 .44 3.11 2.48 16.28 33.24 6.30 . 16 2.36 2.92 15.75 36.40 4.25 .79 4.43 2.57 12.39 Total operating expenses.................................... 78.43 79.48 82.88 82.40 81.83 81.92 80.04 82.60 81.37 80.95 80.75 82.82 81.35 80.19 79.78 80.03 85.60 21.57 20.52 17.12 17.60 18.17 18.08 19.96 17.40 18.63 19.05 19.25 17.18 18.65 19.81 20.22 19.97 14.40 15.63 -.0 2 . 18 15.98 -.3 5 12.73 -.0 5 .02 13.95 .44 .01 13.85 .15 .04 12.75 .15 15.09 .05 .12 14.55 .36 -.0 3 15.41 .45 .01 14.34 .24 .04 14.63 .34 13.49 -.3 2 14.41 .51 . 06 13.64 .23 .10 14.96 .37 .01 15.25 .37 .01 10.52 .18 .05 15.79 15.63 12.70 14.40 14.04 12.90 15.26 14.88 15.87 14.62 14.97 13.17 14.98 13.97 15.34 15.63 10.75 Total operating incom e...................................... Salaries and wages............................................................ Officer and employee benefits........................................ Interest on: Borrowed m oney.......................................................... Occupancy expense o f bank premises, net................. Income before taxes and securities gains (losses)... Income after taxes and before securities gains (losses)............................................................................. Net securities gains or losses ( —), after taxes........... All other income (net) • • •• 1973 Cash dividends paid.......................................................... 9.72 9.81 3.85 BANKS, 1972 □ MAY New York City All other MEMBER Federal Reserve district Class of bank Rates of return (per cent): On securities—Interest and dividends;3 U.S. Treasury securities.............................................. Other U.S. Govt, securities (agencies and cor porations) ................................................................... Obligations o f States and political subdivisions. . All other securities........................................................ On loans:1 Interest, fees, and other loan incom e...................... N et loan losses ( —) or recoveries4 .......................... 5.53 5.26 5.20 5.53 5.41 5.47 5.49 5.42 5.46 5.73 5.51 5.50 5.41 5.12 5.53 5.38 5.06 5.75 4.37 6.31 6.84 4.56 6.04 5.80 4.00 6.92 6.17 4.09 6.68 6.08 4.11 6.67 5.85 3.76 6.28 6.28 4.16 6.43 6.11 4.03 6.19 6.17 4.17 7.26 6.44 4.13 5.91 6.11 4.28 6.38 6.28 4.25 6.98 5.78 4.06 6.20 5.84 4.22 6.05 6.17 4.20 6.15 5.89 3.93 6.21 5.70 3.92 7.82 6.08 -.2 8 6.00 -.1 5 6.92 -.2 5 7.35 -.2 1 6.90 —.23 7.00 -.3 1 6.35 -.2 8 6.87 -.2 3 6.92 -.2 1 7.59 - .1 5 7.70 -.2 6 6.60 - .1 5 6.87 - .1 8 7.28 - .1 4 7.37 -.2 3 7.07 -.2 3 7.20 -.2 6 Ratios on selected types of assets: Percentage o f total assets: Securities:3 U.S. Treasury securities......................................... Other U.S. Govt, securities (agencies and cor porations) ............................................................... Obligations o f States and political subdivisions All other securities................................................... Gross loans2................................................................... Cash assets..................................................................... Real estate assets.......................................................... 4.80 6.31 7.20 10.85 8.21 6.33 5.87 8.13 11.10 7.82 9.08 9.57 10.85 11.78 10.30 7.57 8.02 .54 7.97 .55 54.20 24.40 1.01 .64 11.44 .64 60.71 13.66 1.48 1.36 11.31 .52 57.22 17.22 1.80 3.89 14.81 .79 53.94 12.71 1.79 2.21 12.13 .64 55.50 16.54 1.64 1.74 12.79 .61 57.38 16.49 1.96 1.30 10.59 .64 54.38 20.87 1.17 2.27 13.87 1.18 57.44 13.26 1.48 2.10 14.73 .80 54.14 13.46 1.50 2.93 13.91 .35 56.51 15.09 1.88 3.03 13.73 .74 52.74 16.84 2.23 2.58 12.44 .96 56.47 13.85 1.53 3.76 12.30 .62 52.28 16.55 1.65 3.07 11.70 .27 55.47 13.36 1.50 2.29 12.76 .44 54.49 16.54 1.71 2.74 13.37 .50 53.52 18.02 2.19 2.15 10.56 .34 58.41 15.02 2.00 Percentage o f gross loans:2 Commercial and industrial loans............................. Loans to farmers.......................................................... Real estate loans........................................................... Loans to individuals for personal expenditures... All other loans2 ............................................................ 50.52 .07 9.79 8.76 30.86 50.44 .60 7.13 7.92 33.91 36.55 1.56 21.26 18.13 22.50 25.21 5.05 30.52 28.08 11.14 35.20 2.62 22.22 19.91 20.05 39.23 .28 23.57 21.04 15.88 43.62 .26 16.54 13.59 25.99 32.82 1.12 28.38 20.97 16.71 29.87 1.01 26.62 24.87 17.63 29.88 1.18 23.87 31.58 13.49 31.47 1.18 19.66 31.67 16.02 32.43 2.41 26.10 17.84 21.22 29.79 3.85 22.54 25.15 18.67 29.81 10.61 26.59 21.46 11.53 27.34 14.68 15.91 23.30 18.77 36.84 5.35 12.92 20.47 24.42 33.88 3.54 27.27 17.86 17.45 Other ratios (per cent): Interest on time and savings deposits to time and savings deposits............................................................. Income taxes to net income plus income taxes......... Time and savings deposits to total deposits.............. Total capital accounts and reserves to total assets 5. 4.51 25.91 36.99 9.13 4.68 17.68 50.11 9.13 4.59 24.16 50.94 7.90 4.65 19.53 56.32 8.10 4.61 22.25 50.86 8.25 4.43 27.81 42.52 8.63 4.47 22.72 42.63 8.87 4.57 14.81 55.62 8.74 4.51 17.36 57.08 9.23 4.61 22.38 49.93 8.24 4.70 22.43 47.64 8.17 4.70 20.58 57.51 8.11 4.77 22.18 47.87 8.37 4.94 28.34 56.77 7.80 4.87 24.68 47.64 8.39 4.90 22.11 45.39 7.85 4.54 24.50 58.83 6.94 Number of banks 6 ................................................................ 13 9 156 5,526 5,704 219 334 294 463 363 575 939 430 498 813 633 143 1973 □ MEMBER BANKS, 1972 A 107 MAY For notes see p. A -l 11. A 108 MEMBER INCOME RATIOS OF OTHER LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Summary ratios: Percentage o f equity capital plus all reserves: Income after taxes and before securities gains (losses)1 Net incom e.............................................................................. Cash dividends paid............................................................... Percentage o f net income: Cash dividends paid. Percentage o f total operating income: Interest, fees, and other loan income2 ...................................... Securities—Interest and dividends:3.......................................... U.S. Treasury securities............................................................ Other U.S. Govt, securities (agencies and corporations). Obligations o f States and political subdivisions............... . All other securities..................................................................... Service charges on deposit accounts........................................ Trust department incom e............................................................. All other operating income.......................................................... Total operating income. Salaries and wages........................................... Officer and employee benefits....................... Interest on: Time and savings deposits........................ Borrowed m oney......................................... Capital notes and debentures................... Occupancy expense o f bank premises, net. Provision for loan losses................................ All other operating expenses........................ Minne apolis Kansas City Dallas San Fran cisco 9.67 8.83 5.13 9.34 9.69 4.72 11.79 12.03 5.21 10.64 10.97 6.65 11.25 11.43 5.04 10.20 10.31 4.95 46.42 58.05 48.71 43.34 60.64 44.11 47.99 4.82 1.55 1.65 .26 1.36 5.96 .85 .85 4.99 1.50 1.54 .21 1.74 6.17 .84 .86 4.49 1.10 1.91 .21 1.27 5.45 .75 .68 4.42 1.17 1.50 .19 1.56 5.36 .73 .75 4.13 1.05 1.37 .10 1.61 5.54 .84 .86 4.60 1.21 1.53 .17 1.69 5.70 .81 .83 3.98 .86 1.50 .04 1.58 5.08 .81 .82 5.11 1.46 2.19 .26 1.20 5.98 .62 .63 64.09 69.10 69.66 67.63 66.95 66.96 69.86 71.28 69.12 8.26 1.52 10.93 1.16 1.92 5.75 6.37 6.11 1.81 9.46 .29 3.34 4.33 5.56 5.96 .66 7.25 1.17 3.28 3.84 8.18 6.79 .85 8.92 .75 1.43 5.92 7.71 6.83 1.56 8.24 .86 2.54 3.81 9.21 4.93 1.29 6.21 .22 1.21 6.36 12.82 6.02 .29 8.08 .49 1.56 6.23 7.47 5.00 .65 9 .4 0 .46 1.06 4.97 7.18 6.56 1.83 6.50 .46 3.84 2.80 8.89 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 19.60 4.16 17.26 2.68 22.24 3.86 20.66 3.71 16.98 3.23 18.63 3.32 16.08 2.95 18.36 2.86 14.63 2.48 21.05 3.50 25.84 7.66 .96 4.96 3.15 12.19 28.18 8.36 1.92 3.89 2.64 13.65 34.24 6.93 .31 3.62 2.44 13.53 27.74 3.79 .79 4.47 1.76 16.20 24.97 7.69 .54 3.52 3.09 16.76 35.17 9.11 .65 4.02 2.28 10.94 27.98 8.64 .56 3.60 3.04 16.65 24.83 11.54 1.32 1.90 1.41 14.49 26.88 7.20 .80 3.10 3.18 18.40 29.59 12.88 .13 .78 2.92 15.00 36.65 4.72 .80 4.38 2.57 11.72 New York Phila delphia Cleve land Rich mond 9.39 9.45 5.63 9.70 9.79 3.92 11.57 11.76 5.98 9.55 9.81 4.50 11.05 11.05 4.50 10.62 10.84 5.03 59.61 40.12 50.86 45.94 40.78 4.59 1.63 1.16 .31 1.49 5.86 .79 .79 4.05 1.23 1.33 .25 1.24 5.14 .79 .80 4.93 1.42 1.68 .23 1.60 5.98 .85 .86 4.58 1.12 1.93 .20 1.33 5.65 .90 .92 60.93 65.13 69.42 5.93 2.16 6.51 .50 1.27 11.56 11.14 5.26 .59 6.89 .65 1.55 7.24 12.69 4.46 .50 7.86 .66 2.47 6.16 8.47 100.00 100.00 23.64 4.20 19.69 4 .30 19.79 9.68 .59 5.31 2.64 12.54 Atlanta Chicago 78.39 78.75 82.40 81.01 80.85 80.94 82.38 82.42 74.52 80.78 78.41 85.39 Income before taxes and securities gains (losses)........... Income after taxes and before securities gains (losses). Net securities gains or losses ( —), after taxes................ All other income (net).......................................................... 21.61 13.52 .08 21.25 15.44 -.0 4 .17 17.60 14.35 .07 .03 18.99 15.95 .42 19.15 14.30 19.06 13.68 .27 .02 17.62 13.81 - 1 .1 9 17.58 13.62 .47 .03 25.48 15.25 .31 19.22 14.21 .33 .12 21.59 15.96 .23 .02 14.61 10.48 .10 .01 Net incom e. 13.60 15.57 14.45 16.37 14.30 13.97 12.62 14.12 15.56 14.66 16.21 10.59 Total operating expenses. 1973 Sources and disposition of income: Percentage o f total assets: Total operating expenses...................................................... Salaries, wages, and fringe benefits............................... Interest on time and savings deposits........................... Occupancy expense o f bank premises, net................... All other operating expenses........................................... Total operating income......................................................... Income after taxes and before securities gains (losses)1. N et incom e............................................................................... St. Louis Boston BANKS, 1972 □ MAY Federal Reserve district Item Rates of return: On securities—Interest and dividends: 3 U.S. Treasury securities....................................................................... Other U.S. Govt, securities (agencies and corporations).............. Obligations o f States and political subdivisions............................. All other securities................................................................................. On loans:2 Interest, fees, and other loan income................................................ Net loan losses ( —) or recoveries4 .................................................... 5.83 5.97 3.71 5.30 5.56 5.73 4.32 6.28 5.41 6.06 4.23 5.98 5.50 6.08 4.19 7.49 5.73 6.53 4.00 5.72 5.28 5.68 4.24 6.69 5.25 6.32 4.36 6.54 5.20 5.82 4.03 6.24 3.90 5.82 4.46 5.15 5.03 5.74 4.10 4.86 4.98 5.96 3.82 5.50 4.99 5.59 3.86 8.44 6.64 -.3 7 6.14 - .2 8 6.84 -.3 2 6.64 - .2 4 7.34 -.1 3 7.63 - .3 2 6.23 - .1 4 6.55 -.2 3 6.51 - .2 0 7.06 -.2 9 6.48 -.2 3 7.05 - .2 6 Ratios on selected types of assets: Percentage o f total assets: Securities:3 U.S. Treasury securities................................................................... Other U.S. Govt, securities (agencies and corporations)........... Obligations o f States and political subdivisions......................... All other securities............................................................................. Gross loans2............................................................................................ Cash assets............................................................................................... Real estate assets.................................................................................... 5.96 2.12 10.29 .55 53.78 20.57 1.91 4.87 .53 8.21 .53 54.50 23.92 1.02 4.93 .49 11.11 .66 60.67 16.71 1.24 8.48 1.42 14.73 .87 54.56 15.32 1.39 6.37 1.65 14.10 .31 56.13 17.82 1.62 6.97 .72 10.54 1.08 56.33 19.52 2.55 7.05 .73 11.14 .62 59.11 15.98 1.49 7.05 1.43 10.96 .74 54.81 20.22 1.66 7.00 1.23 7.72 .24 57.02 18.40 1.40 6.82 .29 11.23 .57 56.39 20.51 1.89 5.10 .56 12.48 .42 55.85 20.05 2.40 7.85 1.96 10.07 .32 58.62 15.49 1.93 Percentage o f gross loans:2 Commercial and industrial loans........................................................ Loans to farmers.................................................................................... Real estate loan s.................................................................................... Loans to individuals for personal expenditures............................... All other loans2 ...................................................................................... 54.27 .07 9.45 11.37 24.84 49.71 .09 10.49 9.23 30.48 45.21 .16 14.65 15.58 24.40 37.72 .04 19.74 18.86 23.64 35.09 .35 19.31 28.10 17.15 35.66 .36 13.34 29.23 21.41 40.50 .45 17.80 11.35 29.90 38.67 .48 13.35 21.35 26.15 45.61 .75 14.00 17.46 22.18 31.26 5.43 14.31 20.95 28.05 40.50 1.06 10.77 13.74 33.93 34.94 3.04 26.91 16.04 19.07 Other ratios (per cent): Interest on time and savings deposits to time and savings deposits Income taxes to net income plus income taxes................................... Time and savings deposits to total deposits......................................... Total capital accts. and reserves to total assets5................................. 4.62 35.74 34.19 9.08 4.54 25.71 37.94 9.09 4.71 16.89 46.29 9.03 4.51 17.01 53.84 9.68 4.42 23.02 44.75 8.34 4.62 26.10 41.75 8.61 4.69 20.37 51.81 8.38 4.80 22.29 39.89 8.39 4.61 36.55 39.71 8.16 4.74 24.24 40.20 8.32 4.81 23.45 40.58 7.60 4.51 25.56 58.95 6.88 Number of banks6........................................................................................... 4 16 6 16 15 20 24 15 8 18 17 19 For notes see p. A - l l l . MAY 1973 □ MEMBER BANKS, 1972 A 109 A 110 MEMBER INCOME RATIOS OF ALL OTHER MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Boston New York Phila delphia Cleve land Rich mond Atlanta Chicago St. Louis Minne apolis Kansas City D a lla s San Fran cisco 9.30 9.45 4.78 10.59 10.78 5.25 10.15 10.52 4.53 10.45 10.82 3.56 11.78 12.26 4.57 12.10 12.46 3.69 10.65 11.14 3.50 10.51 11.03 3.13 11.25 11.61 3.87 11.49 11.77 3.54 10.97 11.43 3.18 11.09 11.91 3.78 Percentage o f net income: Cash dividends paid..................................................................... 50.60 48.70 43.10 32.91 37.30 29.68 31.46 28.42 33.39 30.14 27.82 31.76 Sources and disposition of income: Percentage o f total assets: Total operating expenses............................................................ Salaries, wages, and fringe benefits..................................... Interest on time and savings deposits................................. Occupancy expense o f bank premises* net......................... All other operating expenses................................................ Total operating income............................................................... Income after taxes and before securities gains (losses)1---N et incom e..................................................................................... 5.12 1.67 1.73 .32 1.40 6.11 .75 .76 4.88 1.39 2.07 .27 1.15 5.85 .82 .84 4.74 1.15 2.47 .20 .92 5.73 .84 .87 4.92 1.20 2.41 .19 1.12 6.01 .88 .91 5.23 1.48 2.25 .22 1.28 6.45 .92 .96 4.98 1.36 2.09 .20 1.33 6.18 .93 .96 5.09 1.23 2.64 .21 1.01 6.12 .80 .84 4.63 1.16 2.30 .19 .98 5.76 .86 .90 5.19 1.18 2.84 .17 1.00 6.29 .81 .83 4.89 1.32 2.19 .19 1.19 6.16 .94 .96 4.83 1.24 2.14 .21 1.24 5.95 .86 .90 5.80 1.73 2.35 .31 1.41 6.69 .71 .76 70.02 64.30 65.98 65.02 69.01 63.57 61.69 62.27 66.70 65.46 66.01 68.62 5.66 1.43 8.81 .71 3.97 5.10 4.30 8.15 4.05 11.92 1.09 3.61 3.00 3.88 10.25 4.01 11.06 1.76 2.46 2 . 13 2. 3 5 13.06 3.09 10.14 .81 2.99 2.03 2.86 8.19 4.13 9.07 .36 3.08 1.63 4.53 9.32 4.32 10.79 .53 4.38 2.13 4.96 11.46 4.76 9.43 1.59 2.87 1.98 6.22 13.67 5.89 9.56 .55 2.89 1.58 3.59 12.11 3.68 9.01 .30 3.71 .86 3.63 11.20 3.38 9.36 .43 4.44 1.40 4.33 9.14 4.64 9.58 .64 4.68 1.33 3.98 7.19 2.89 8.23 .31 5.12 1.94 5.70 Total operating income.................................................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages........................................................................ Officer and employee benefits.................................................... Interest on: Time and savings deposits..................................................... Borrowed m oney...................................................................... Capital notes and debentures................................................ Occupancy expense o f bank premises, net............................. Provision for loan losses............................................................ All other operating expenses................................................... 22.89 4.44 20.09 3.78 17.06 3.03 17.36 2.68 19.74 3.25 19.10 3.02 17.32 2.88 17.52 2.65 16.01 2.77 18.69 2.74 18.41 2.56 22.57 3.28 28.41 2.32 .24 5.37 2.80 17.42 35.43 2.32 .40 4.75 2.33 14.35 43.25 .46 .17 3.53 1.33 13.94 40.14 .48 .17 3.28 1.82 15.87 34.89 1.14 .32 3.49 1.90 16.31 33.95 1.70 .20 3.29 2.39 17.00 43.15 .96 .28 3.55 1.67 13.45 39.89 .50 .13 3.36 1.49 14.91 45.21 .56 .43 2.80 1.33 13.49 35.60 1.50 .27 3.11 2.14 15.24 36.02 1.28 .19 3.56 2.92 16.32 35.19 2.01 .73 4.70 2.57 15.56 83.89 83.45 82.77 81.80 81.04 80.65 83.26 80.45 82.60 79.29 81.26 86.61 Income before taxes and securities gains (losses)............... Income after taxes and before securities gains (losses)----Net securities gains or losses ( —), after taxes..................... All other income (net)............................................................... 16.11 12.32 .17 .01 16.55 14.16 .29 -.0 3 17.23 14.73 .62 - .0 9 18.20 14.76 .49 .01 18.96 14.37 .45 .09 19.35 15.17 .39 -.0 2 16.74 13.17 .56 19.55 15.07 .55 .09 17.40 12.96 .19 .15 20.71 15.33 .38 - .0 4 18.74 14.71 .48 13.39 10.70 .55 .22 Net incom e.................................................................................. 12.50 14.42 15.26 15.26 14.91 15.54 15.71 13.30 15.67 15.19 11.47 Percentage o f total operating income: Interest, fees, and other loan income2 .................................... Securities—Interest and dividends:3........................................ U.S. Treasury securities......................................................... Other U.S. Govt, securities (agencies and corporations) Obligations o f States and political subdivisions............... All other securities................................................................... Service charges on deposit accounts....................................... Trust department incom e........................................................... All other operating income........................................................ Total operating expenses.............................................. 1973 Summary ratios: Percentage o f equity capital plus all reserves: Income after taxes and before securities gains (losses)1. . . N et incom e.................................................................................... Cash dividends paid..................................................................... BANKS, 1972 □ MAY Federal Reserve district Item Rates of return: On securities—Interest and dividends: 3 5.27 5.75 3.78 6.77 5.39 6.52 3.93 6.68 5.42 6.12 3.91 6.27 5.43 6.22 4.14 6.89 5.74 6.40 4.26 6.05 5.60 6.15 4.29 6.03 5.65 6.27 4.15 7.21 5.51 5.78 4.08 6.15 5.41 5.84 4.16 6.41 5.68 6.19 4.25 7.21 5.56 5.88 4.02 6.68 5.38 6.03 4.18 5.15 7.19 - .2 8 6.96 -.2 9 6.90 -.1 5 7.29 - .1 7 7.83 -.1 6 7.75 -.2 3 7.05 - .1 7 7.18 -.1 3 7.67 -.1 1 7.54 -.1 9 7.63 -.2 3 8.01 -.2 5 Obligations o f States and political subdivisions.......................................... All other securities.............................................................................................. Gross loans2............................................................................................................. Cash assets............................................................................................................... Real estate assets.................................................................................................... 6.55 1.52 14.24 .64 59.46 14.12 1.99 8.85 3.62 17.73 .96 54.03 11.73 1.60 10.83 3.76 16.19 1.61 54.72 10.36 1.68 14.46 2.98 14.72 .70 53.60 11.07 1.63 9.21 4.16 13.72 .39 56.87 12.47 2.12 10.28 4.34 15.54 .55 50.69 15.31 2.05 12.40 4.65 13.89 1.35 53.50 11.45 1.57 14.31 5.88 13.51 .52 49.97 13.22 1.65 14.09 3.96 13.62 .29 54.72 10.93 1.55 12.16 3.36 13.59 .37 53.48 14.41 1.61 9.77 4.69 14.17 .57 51.45 16.20 2.01 8.93 3.20 13.16 .40 57.31 12.48 2.38 Percentage o f gross loans:2 Commercial and industrial loans......................................................................... Loans to farmers..................................................................................................... Real estate loans..................................................................................................... Loans to individuals for personal expenditures................................................ All other loans2 ....................................................................................................... 31.34 .39 30.98 26.12 11.17 25.19 .77 34.83 26.73 12.48 21.27 2.01 41.17 26.00 9.55 19.65 2.28 35.59 32.70 9.78 24.95 1.97 28.19 34.86 10.03 28.82 1.69 23.65 33.22 12.62 22.40 4.84 36.41 25.90 10.45 20.91 7.22 31.71 28.95 11.21 21.86 15.57 32.92 23.46 6.19 25.13 19.90 16.81 24.62 13.54 33.30 9.50 15.01 26.99 15.20 28.03 6.26 29.25 27.89 8.57 Other ratios (per cent): Interest on time and savings deposits to time and savings dep.......................... Income taxes to net income plus income taxes.................................................... Time and savings deposits to total deposits.......................................................... Total capital accts. and reserves to total assets5.................................................. 4.36 21.97 46.68 8.36 4.34 12.71 55.17 8.24 4.50 13.01 62.51 8.49 4.51 17.80 60.84 8.66 4.75 21.82 54.71 8.14 4.73 20.41 50.69 7.92 4.70 20.77 63.20 7.81 4.76 22.10 54.26 8.35 5.02 23.41 63.75 7.62 4.92 24.87 51.32 8.42 4.95 20.98 49.13 8.08 4.70 19.44 58.20 7.23 Number of banks ®............................................................................................................ 215 318 288 447 348 555 915 415 490 795 616 124 On loans:2 Ratios on selected types of assets: Percentage o f total assets: Securities:3 equally important influence on the result. In the ratios based on aggregates presented here, the experience of those banks in each group whose figures are largest have a much greater in fluence than that o f the many banks with smaller figures. Ratios based on aggregates show combined results for the banking system as a whole, and, broadly speaking, are the more significant for purposes o f general analyses of credit and monetary problems, while averages of individual ratios are useful primarily to those interested in studying the financial results o f operations o f individual banks. 1973 □ MEMBER BANKS, 1972 A 111 5 Includes capital notes and debentures and all valuation reserves. 6 Excludes one member bank located outside the continental United States. N ote .—The ratios in this and the preceding two tables were computed from the dollar aggregates shown in preceding tables. Many of these ratios vary substantially from the aver age o f individual bank ratios, (which will be published in a subsequent issue) in which each bank’s figures—regardless of size or amount—are weighted equally and in general have an MAY 1 Excludes minority interest in operating income, if any. 2 Loans include Federal funds sold and securities purchased under agreements to resell. 3 Excludes trading-account securities. 4 N et losses on loans is the sum o f the expense item “pro vision for loan losses” for banks not on a reserve accounting method plus the excess o f losses charged against reserves for losses on loans over recoveries credited to these reserves for banks on a reserve accounting method. A 112 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM A r t h u r F. B u r n s , Chairman J. D e w e y D a a n e J o h n E. S h e e h a n G e o r g e W. M i t c h e l l A n d r e w F. B rim m er J e ffr e y M. B u ch er R o b e r t C . H o l l a n d , Executive D irector J. C h a r l e s P a r t e e , A d viser to the B oard * R o b e r t S o l o m o n , A d viser to the B oard H o w a r d H . H a c k l e y , A ssistan t to the B oard R o b e r t L . C a r d o n , A ssista n t to the B oard E d w in J. J o h n s o n , A ssistan t to the B oard J o s e p h E. K e l l e h e r , A ssista n t to the B oard J o se p h R . C o y n e , A ssistan t to the B oard F r a n k O ’B r i e n , J r ., Special A ssistan t to the B oard J o h n S . R ip p e y , Special A ssistan t to the B oard OFFICE OF EXECUTIVE DIRECTOR R o b e r t C . H o l l a n d , Executive D irector D a v i d C . M e l n i c o f f , D epu ty Executive D irector G o r d o n B . G r im w o o d , A ssistan t D irector and Program D irector fo r Contingency Planning W i l l i a m W . L a y t o n , D irector of Equal Em ploym ent Opportunity B r e n t o n C . L e a v i t t , Program D irecto r fo r Banking Structure OFFICE OF THE SECRETARY T y n a n S m i t h , Secretary M u r r a y A l t m a n n , A ssistan t Secretary N o r m a n d R . V . B e r n a r d , A ssistan t Secretary A r t h u r L. B r o i d a , A ssistan t Secretary E l i z a b e t h L. C a r m i c h a e l , A ssistan t Secretary tCHESTER B. F e ld b e r g , Assistant Secretary LEGAL DIVISION T h o m a s J. O ’C o n n e l l , G eneral Counsel P a u l G a r d n e r , J r . , A ssistan t G eneral Counsel P a u l i n e B . H e l l e r , A ssistan t G eneral Counsel J o h n N i c o l l , A ssistan t G eneral Counsel R o b e r t S . P l o t k i n , A ssistan t G eneral Counsel A n d r e w F. O e h m a n n , Special A ssistan t to the General Counsel DIVISION OF FEDERAL RESERVE BANK OPERATIONS R o n a l d G . B u r k e , D irector J o h n N . K i l e y , J r ., A ssociate D irector W a l t e r A . A l t h a u s e n , A ssistan t D irector D o n a l d G . B a r n e s , A ssistan t D irector H a r r y A . G u i n t e r , A ssistan t D irector P . D . R i n g , A ssistan t D irector J a m e s L . V i n i n g , A ssistan t D irector C h a r l e s C . W a l c u t t , A ssistan t D irector E . M a u r i c e M c W h i r t e r , Chief Federal R eserve Examiner *On leave of absence. fOn loan from the Federal Reserve Bank of New York. DIVISION OF RESEARCH AND STATISTICS J. C h a r l e s P a r t e e , D irector S t e p h e n H . A x i l r o d , A ssociate D irector S a m u e l B . C h a s e , A sso cia te D irecto r L y l e E . G r a m l e y , A ssociate D irecto r P e t e r M . K e i r , A d viser Ja m e s L . P i e r c e , A d viser S t a n l e y J. S i g e l , A d viser M u r r a y S . W e r n i c k , A d viser K e n n e t h B . W i l l i a m s , A d viser J a m e s B . E c k e r t , A ssociate A d viser J o s e p h S . Z e i s e l , A ssociate A d viser E d w a r d C . E t t i n , A ssista n t A d viser E l e a n o r J. S t o c k w e l l , A ssistan t A d viser S t e p h e n P. T a y l o r , A ssistan t A d viser L o u is W e i n e r , A ssistan t A d viser L e v o n H. G a r a b e d i a n , A ssistan t D irector DIVISION OF INTERNATIONAL FINANCE R a l p h C . B r y a n t , D irecto r J o h n E . R e y n o l d s , A ssociate D irector A . B . H e r s e y , Senior A d viser R o b e r t F . G e m m i l l, A d viser R e e d J. I r v i n e , A d viser S a m u e l I. K a t z , A d viser B e r n a r d N o r w o o d , A d viser S a m u e l P i z e r , A d viser R a l p h C . W o o d , A d viser G e o r g e B . H e n r y , A ssistan t A d viser H e l e n B . J u n z , A ssistan t A d viser DIVISION OF SUPERVISION AND REGULATION F r e d e r i c S o l o m o n , D irector B r e n t o n C . L e a v i t t , D eputy D irector F r e d e r i c k R . D a h l , A ssista n t D irecto r J a c k M . E g e r t s o n , A ssistan t D irector J a n e t O . H a r t , A ssista n t D irector J o h n N . L y o n , A ssista n t D irecto r J o h n T . M c C l i n t o c k , A ssistan t D irector T h o m a s A . S id m a n , A ssista n t D irector G r i f f i t h L. G a r w o o d , A d viser C h a r l e s L . M a r i n a c c i o , A d viser A 113 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION J o h n J. H a r t , A ssistant D irector OFFICE OF THE CONTROLLER J o h n K a k a l e c , C ontroller J o h n M . D e n k l e r , A ssistan t Controller DIVISION OF DATA PROCESSING DIVISION OF ADMINISTRATIVE SERVICES J e r o l d E . S l o c u m , D irecto r C h a r l e s L . H a m p t o n , A sso cia te D irector G l e n n L . C u m m in s, A ssista n t D irector B e n j a m in R . W . K n o w l e s , J r ., A ssistan t D irector W a l t e r W . K r e i m a n n , D irector D o n a l d E . A n d e r s o n , A ssistan t D irector J o h n D . S m it h , A ssistan t D irector H e n r y W . M e e t z e , A ssista n t D irector E d w a r d K . O ’C o n n o r , A ssistan t D irector R i c h a r d S . W a t t , A ssistan t D irector A 114 FEDERAL OPEN MARKET COMMITTEE Chairman A r t h u r F. B u r n s , John J. B a l l e s A lfr e d H ayes, J. D e w e y D a a n e A n d r e w F. B r im m e r D a r r y l R. F r a n c is R ob ert F ran k P. M a y o R o b e r t C . H o l l a n d , Secretary A r t h u r L . B r o i d a , Deputy Secretary M u r r a y A l t m a n n , Assistant Secretary N o r m a n d R . V . B e r n a r d , A ssistant Secretary H o w a r d H . H a c k l e y , G eneral Counsel T h o m a s J. O 'C o n n e l l , A ssistant General Counsel J. C h a r l e s P a r t e e , Senior Economist S t e p h e n H . A x i l r o d , Economist W. M i t c h e l l G eorge J e ffr e y M. B u ch er John Vice Chairman E. M o r r is E. S h e e h a n * R o b e r t S o l o m o n , Econom ist (International Finance) L e o n a l l C . A n d e r s e n , A ssociate Econom ist R a l p h C . B r y a n t , A ssociate Economist R o b e r t W . E i s e n m e n g e r , A ssociate Econom ist G e o r g e G a r v y , A ssociate Economist L y l e E . G r a m l e y , A ssociate Economist A . B. H e r s e y , A ssociate Economist J o h n E . R e y n o l d s , A ssociate Economist K a r l A . S c h e l d , A ssociate Economist K e n t O . S im s , A ssociate Economist (Dom estic Finance) A l a n R . H o l m e s , M anager, System Open M arket Account C h a r l e s A . C o o m b s , Special M anager , System Open M arket Account P e t e r D . S t e r n l i g h t , Deputy M anager , System Open M arket Account D a v id E . B o d n e r , Deputy Special M anager , System Open M arket Account FEDERAL ADVISORY COUNCIL G. M o r r is D o r r a n c e , J r ., H a r r y H o o d B a s s e t t , s ix t h J a m e s F . E n g l i s h , J r ., f ir s t f e d e r a l RESERVE DISTRICT G a b r ie l H a u g e , C l a ir E . F u l t z , fo u rth federal I. S t o r r s , f if t h f e d e r a l se v en th federal n in t h f e d e r a l d is t r ic t M o r r is F . M il l e r , t e n t h fe d er a l L e w is H. B o n d , eleventh H. A . R o g e r s , fed era l t w elfth federal RESERVE DISTRICT W reserve e ig h t h f e d e r a l d is t r ic t RESERVE DISTRICT RESERVE DISTRICT * O n le a v e o f a b se n c e . H. M o r e y , r e s e r v e d is t r ic t RESERVE DISTRICT A ll en P. St u l t s , D a v id d is t r ic t , C h ester C . L in d , seco nd RESERVE DISTRICT T homas reserve reserve FEDERAL RESERVE DISTRICT President Vice President t h ir d f e d e r a l r e s e r v e d is t r ic t , federal H e r b e r t V . P r o c h n o w , Secretary J. K o r s v i k , A ssistant Secretary il l ia m A 115 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Zip code Chairman Deputy Chairman President First Vice President Boston ...................... 02106 James S. Duesenberry Louis W. Cabot Frank E. Morris Earle O. Latham New York................ 10045 Alfred Hayes William F. Treiber Buffalo................. 14240 Roswell L. Gilpatric Frank R. Milliken Rupert Warren Philadelphia .......... 19101 John R. Coleman Edward J. Dwyer David P. Eastburn Mark H. Willes Cleveland ................ 44101 Willis J. Winn Walter H. MacDonald Cincinnati ........... Pittsburgh ........... 45201 15230 Horace A. Shepard J. Ward Keener Graham E. Marx Robert E. Kirby Richm ond......................23261 Baltimore ...................21203 Charlotte.................... 28201 Culpeper Communications C enter.................... 22701 Atlanta .................... 30303 Birmingham......... Jacksonville ......... Nashville.............. New Orleans......... Miami Office......... 35202 32203 37203 70160 33101 Chicago.................... 60690 Detroit................... 48231 St. L ouis................... 63166 Little Rock............ Louisville............. Memphis............... 72203 40201 38101 Minneapolis ............ 55480 Helena................... 59601 Kansas C ity ............. 64198 Denver ................. Oklahoma City , ., Omaha ................. 80217 73125 68102 D a lla s....................... 75222 El P aso................. Houston................ San Antonio......... 79999 77001 78295 San Francisco......... 94120 Los A ngeles......... Portland................ Salt Lake City ,, ,. Seattle................... 90051 97208 84110 98124 Robert W. Lawson, Jr. Stuart Shumate John H. Fetting, Jr. Charles W. DeBell Vice President in charge of branch A. A. Maclnnes, Jr. Fred O. Kiel James H. Campbell Robert P. Black H. Lee Boatwright, III Jimmie R. Monhollon J. Gordon Dickerson, Jr. John C. Wilson H. G. Pattillo David Mathews Henry Cragg James W. Long Fred Adams, Jr. Monroe Kimbrel Kyle K. Fossum William H. Franklin Peter B. Clark W.M. Defoe Robert P. Mayo Ernest T. Baughman Frederic M. Peirce Sam Cooper Roland R. Remmel William H. Stroube Alvin Huffman, Jr. Darryl R. Francis Eugene A. Leonard David M. Lilly Bruce B. Dayton William A. Cordingley Bruce K. MacLaury M. H. Strothman, Jr. Robert W. Wagstaff Robert T. Person Maurice B. Mitchell Joseph H. Williams A. James Ebel George H. Clay John T. Boysen Chas. F. Jones John Lawrence Herbert M. Schwartz M. Steele Wright, Jr. Irving A. Mathews Philip E. Coldwell T. W. Plant 0 . Meredith Wilson Joseph F. Alibrandi Edward A. Sloan Frank Anderson Theodore C. Jacobsen Thomas T. Hirai John J. Balles A. B. Merritt Hiram J. Honea^ Edward C. Rainey Jeffrey J. Wells George C. Guynn W. M. Davis Daniel M. Doyle John F. Breen Donald L. Henry Laurence T. Britt Howard L. Knous George C. Rankin William G. Evans Robert D. Hamilton Frederic W. Reed James L. Cauthen Carl H. Moore Gerald R. Kelly William M. Brown Arthur L. Price Paul W. 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(Lim ited supply of m im eographed copies of full text available upon request fo r single copies) OPERATING POLICIES OF BANK HOLDING COMPA NIES—PART 1, by Robert J. L aw rence. Apr. 1971. 82 pp. PRIVATE HOUSING COMPLETIONS—A NEW DIMEN SION IN CONSTRUCTION STATISTICS, by Bernard N . Freedman. Jan. 1972. 20 pp. POLICY VARIABLES, UNEMPLOYMENT AND PRICE LEVEL CHANGES, by Peter S. R ose and L acy H. Hunt II. Jan. 1972. 11 pp. OPTIMAL DISTRIBUTED LAG RESPONSES AND EX PECTATIONS, by R oger Craine. Feb. 1972. 9 pp. THE EFFECT OF HOLDING COMPANY ACQUISITIONS ON BANK PERFORMANCE, by Sam uel H. T alley. Feb. 1972. 25 pp. INTERNATIONAL MONEY MARKETS AND FLEXIBLE EXCHANGE RATES, by Stanley W . B lack. Mar. 1972. 7 4 pp. EXPLAINING CHANGES IN EURO-DOLLAR POSI TIONS: A STUDY OF BANKS IN FOUR EUROPEAN COUNTRIES, by R odney H. M ills, Jr. M ay 1972. 34 pp. CREDIT RATIONING: A REVIEW, by Benjam in M . Friedman. June 1972. 26 pp. REGULATION Q AND THE COMMERCIAL LOAN MAR KET IN THE 1960’s, by Benjam in M . Friedm an. June 1972. 38 pp. THE REGULATION OF SHORT-TERM CAPITAL MOVEMENTS IN MAJOR COUNTRIES, by R odney H. M ills, Jr. N o v . 1972. 53 pp. FEDERAL RESERVE DEFENSIVE BEHAVIOR AND THE REVERSE CAUSATION ARGUMENT, by R aym ond Lombra and R aym ond Torto. N o v . 1972. 15 pp. EXAMINATION OF THE MONEY STOCK CONTROL APPROACH OF BURGER, KALISH, AND BABB, by Fred J. L evin. March 1973. OBTAINING THE YIELD ON A STANDARD BOND FROM A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS, by James L. K ich lin e, P. M ichael Laub, and Guy V . G . S teven s. M ay 1973. 30 pp. STAFF ECONOMIC STUDIES Studies and papers on econom ic and financial subjects that are of general interest in the field of econom ic research. Printed in full in the BULLETIN. (Staff Economic Studies are included in list of reprints below .) FEDERAL RESERVE BULLETIN □ MAY 1973 A 118 REPRINTS ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. LIQUIDITY AND PUBLIC POLICY, Staff P a p er by Stephen H. A xilrod. Oct. 1961. 17 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. INTEREST RATES AND MONETARY POLICY, Staff P a p er by Stephen A xilrod. Sept. 1962. 28 pp. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. 1963. 8 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN OVER SERIES. Mar. 1965. 4 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff E co n o m ic S tu d y by L yle E. Gram ley and S a muel B. C hase, Jr. Oct. 1965. 25 pp. RESEARCH ON BANKING STRUCTURE AND PER FORMANCE, S taff E c o n o m ic S tu d y by Tynan Sm ith. Apr. 1966. 11 pp. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff E c o n o m ic S tu d y by Frank de Leeuw with Frank E. H opkins and M ichael D . Sherman. N ov. 1966. 11 pp. REVISED SERIES ON COMMERCIAL AND INDUS TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. EVIDENCE ON CONCENTRATION IN BANKING MAR KETS AND INTEREST RATES, Staff E co n o m ic S tu d y by Almarin P hillips. June 1967. 11 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. July 1967. 6 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE BONDS. A ug. 1967. 16 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. BUSINESS FINANCING BY BUSINESS FINANCE COM PANIES. O ct. 1968. 13 pp. MANUFACTURING CAPACITY: A COMPARISON OF TWO SOURCES OF INFORMATION, S ta ff E co n o m ic S tu d y by Jared J. E nzler. N o v . 1968. 5 pp. MONETARY RESTRAINT, BORROWING, AND CAPITAL SPENDING BY SMALL LOCAL GOVERNMENTS AND STATE COLLEGES IN 1966. D ec. 1968. 3 0 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. THE CHANNELS OF MONETARY POLICY, S taff E c o n o m ic S tu d y by Frank de L eeuw and Edward Gram lich. June 1969. 2 0 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. A ug. 1969. 5 pp. EURO-DOLLARS: A CHANGING MARKET. O ct. 1969. 20 pp. RECENT CHANGES IN STRUCTURE OF COMMER CIAL BANKING. Mar. 1970. 16 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND STATISTICS. M ay 1970. 4 pp. MEASURES OF SECURITY CREDIT. D ec. 1970. 11 pp. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. Feb. 1971. 26 pp. BANK FINANCING OF MOBILE HOMES. Mar. 1971. 4 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 pp. INTEREST RATES, CREDIT FLOWS, AND MONETARY AGGREGATES SINCE 1964. June 1971. 16 pp. TWO KEY ISSUES OF MONETARY POLICY. June 1971. 4 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1971. 12 pp. BANK RATES ON BUSINESS SERIES. June 1971. 10 pp. LOANS—REVISED MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. INDUSTRIAL PRODUCTION—REVISED MEASURES. July 1971. 26 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. 18 pp. REVISED MEASURES OF MANUFACTURING CAPAC ITY UTILIZATION. O ct. 1971. 3 pp. AND NEW FEDERAL RESERVE BOARD PUBLICATIONS A 119 REVISION OF BANK CREDIT SERIES. D ec. 1971. 5 pp. YIELDS ON NEWLY ISSUED CORPORATE BONDS. Sept. 1972. 2 pp. PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. D ec. 1971. 11 pp. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. Oct. 1972. 11 pp. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS. Feb. 1972. 16 pp. WAYS TO MODERATE FLUCTUATIONS IN THE CON STRUCTION OF HOUSING. Mar. 1972. 11 pp. OPEN MARKET OPERATIONS AND THE MONETARY AND CREDIT AGGREGATES— 1971. Apr. 1972. 23 pp. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. 1972. 5 pp. CONSTRUCTION LOANS AT COMMERCIAL BANKS. June 1972. 12 pp. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. June 1972. 5 pp. CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. June 1972. 10 pp. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN OVER—REVISED SERIES. July 1972. 5 pp. RECENT REGULATORY CHANGES IN RESERVE RE QUIREMENTS AND CHECK COLLECTION. July 1972. 5 pp. BANKING AND MONETARY STATISTICS, 1971. S e lected series of banking and monetary statistics for 1971 only. F eb ., M ar., and July 1972. 20 pp. REVISION OF CONSUMER CREDIT STATISTICS. Oct. 1972. 21 pp. SURVEY OF FINANCE COMPANIES, 1970. 1972. 15 pp. N ov. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 AMENDMENTS. D ec. 1972. 13 pp. EVOLUTION OF THE PAYMENTS MECHANISM. D ec. 1972. 4 pp. REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANK RESERVES AND DEPOSITS. Feb. 1973. 19 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX CHANGE OPERATIONS. Mar. 1973. 22 pp. DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. Apr. 1973. 13 pp. CHANGES IN TIME AND SAVINGS DEPOSITS AT COMMERCIAL BANKS, JULY 1972-JAN. 1973. Apr. 1973. 15 pp. STATE AND LOCAL BORROWING ANTICIPATIONS AND REALIZATIONS. Apr. 1973. 4 pp. FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER OF 1973. M ay 1973. 10 pp. YIELDS ON RECENTLY OFFERED BONDS. M ay 1973. 2 pp. CORPORATE FEDERAL RESERVE BULLETIN □ MAY 1973 A 120 INDEX TO STATISTICAL TABLES (References are to pages A-4 through A-l 11 although the prefix “ A” is omitted in this index) (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 31, 33 Agricultural loans of commercial banks, 22, 24 Arbitrage, 93 Assets and liabilities (See also Foreigners): Banks, by classes, 18, 22, 23, 24, 37 Federal Reserve Banks, 12 Nonfinancial corporations, current, 48 Automobiles: Consumer instalment credit, 54, 55, 56 Production index, 58, 59 Bank credit proxy, 17 Bankers’ balances, 23, 26 (See also Foreigners, claims on, and liabilities to) Banks for cooperatives, 38 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Yields and prices, 34, 35 Branch banks: Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Brokerage balances, 85 Business expenditures on new plant and equipment, 48 Business indexes, 62 Business loans (See Commercial and industrial loans) Capacity utilization, 62 Capital accounts: Banks, by classes, 18, 23, 28 Federal Reserve Banks, 12, 13 Central banks, 92, 94 Certificates of deposit, 28 Coins, circulation, 15 Commercial and industrial loans: Commercial banks, 17, 22, 31 Weekly reporting banks, 24, 29 Commercial banks: Assets and liabilities, 17, 18, 22, 23, 24 Consumer loans held, by type, 55 Deposits at, for payment of personal loans, 30 Loans sold outright, 31 Number, by classes, 18 Real estate mortgages held, by type, 50 Commercial paper, 31, 33 Condition statements (See Assets and liabilities) Construction, 62, 63 Consumer credit: Instalment credit, 54, 55, 56, 57 Noninstalment credit, by holder, 55 Consumer price indexes, 62, 66 Consumption expenditures, 68, 69 Corporations: Profits, taxes, and dividends, 48 Security issues, 46, 47 Security yields and prices, 34, 35 Cost of living (See Consumer price indexes) Currency and coin, 5, 9, 23 Currency in circulation, 5, 15, 16 Customer credit, stock market, 36 Debits to deposit accounts, 14 Debt (See specific types of debt or securities) Demand deposits: Adjusted, commercial banks, 14, 17, 23 Banks, by classes, 18, 23, 27 Ownership by individuals, partnerships, and corporations, 30 Demand deposits—Continued Subject to reserve requirements, 17 Turnover, 14 Deposits (See also specific types of deposits): Accumulated at commercial banks for payment of personal loans, 30 Banks, by classes, 18, 23, 27, 37 Euro-dollars, 88 Federal Reserve Banks, 12, 13, 88 Postal savings, 23 Subject to reserve requirements, 17 Discount rates (See Interest rates) Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 48 Dollar assets, foreign, 75, 81 Earnings and hours, manufacturing industries, 65 Employment, 62, 64, 65 Euro-dollar deposits in foreign branches of U.S. banks, 88 Farm mortgage loans, 49, 50 Federal agency obligations, 11, 12, 13, 14 Federal finance: Receipts and outlays, 40, 41 Treasury operating balance, 40 Federal funds, 7, 22, 24, 28, 33 Federal home loan banks, 38, 39, 51 Federal Home Loan Mortgage Corporation, 53 Federal Housing Administration, 49, 50, 51, 52, 53 Federal intermediate credit banks, 38, 39 Federal land banks, 38, 39 Federal National Mortgage Assn., 38, 39, 52 Federal Reserve Banks: Condition statement, 12 U.S. Govt, securities held, 4, 12, 14, 42, 43 Federal Reserve credit, 4, 6, 12, 14 Federal Reserve notes, 12, 13, 15 Federally sponsored credit agencies, 38, 39 Finance companies: Loans, 24, 54, 55, 57 Paper, 31, 33 Financial institutions, loans to, 22, 24 Float, 4 Flow of funds, 70 Foreign: Currency operations, 11, 12, 13, 75, 81 Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Exchange rates, 91 Trade, 73 Foreigners: Claims on, 82, 83, 88, 89, 90 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Gold: Certificates, 12, 13, 15 Earmarked, 88 Net purchases by United States, 74 Production, 95 Reserves of central banks and govts., 94 Stock, 4, 75 Government National Mortgage Assn., 52 Gross national product, 68, 69 Hours and earnings, manufacturing industries, 65 Housing permits, 62 Housing starts, 63 A 121 Labor force, 64 Life insurance companies (See Insurance companies) Loans (See also specific types of loans): Banks, by classes, 18, 22, 24, 37 Commercial banks, 17, 18, 22, 24, 29, 31, 32 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 Insurance companies, 37, 50, 51 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Savings and loan assns., 38, 51 Manufacturers: Capacity utilization, 62 Production index, 59, 62 Margin requirements, 10 Member banks: Assets and liabilities, by classes, 18, 22 Borrowings at Federal Reserve Banks, 6, 12 Income and expenses, 96-111 Number, by classes, 18 Reserve position, basic, 7 Reserve requirements, 9 Reserves and related items, 4, 6, 17 Mining, production index, 59, 61 Mobile home shipments, 63 Money market rates (See Interest rates) Money stock and related data, 16 Mortgages (See Real estate loans and Residential mortgage loans) Mutual funds (See Investment companies) Mutual savings banks, 27, 37, 42, 43, 50 National banks, 20, 30 National defense expenditures, 41, 68 National income, 68, 69 Nonmember banks, 20, 22, 23, 30, 96 Open market transactions, 11 Payrolls, manufacturing index, 62 Personal income, 69 Postal savings, 23 Prices: Consumer and wholesale commodity, 62, 66 Security, 35 Prime rate, commercial banks, 32 Production, 58-61, 62 Profits, corporate, 48 Real estate loans: Banks, by classes, 22, 25, 37, 50 Delinquency rates on home mortgages, 53 Mortgage yields, 35, 51, 52, 53 Type of holder and property mortgaged, 49-53 Reserve position, basic, member banks, 7 Reserve requirements, member banks, 9 Reserves: Central banks and govts., 94 Commercial banks, 23, 26, 28 Federal Reserve Banks, 12, 13 Member banks, 5, 6, 17, 23 U.S. reserve assets, 75 Residential mortgage loans, 35, 49, 50, 51, 52, 53 Retail credit, 54 Retail sales, 62 Saving: Flow of funds series, 70 National income series, 68 Savings and loan assns., 38, 43, 51 Savings deposits (See Time deposits) Savings institutions, principal assets, 37, 38 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 38, 39 International transactions, 84, 85 New issues, 45, 46, 47 Silver coin, 15 Special Drawing Rights, 4, 12, 13, 72, 75 State and local govts.: Deposits, 23, 27 Holdings of U.S. Govt, securities, 42, 43 New security issues, 45, 46 Ownership of securities of, 22, 26, 37 Yields and prices of securities, 34, 35 State member banks, 20, 30 Stock market credit, 36 Stocks: New issues, 46, 47 Yields and prices, 34, 35 Tax receipts, Federal, 41 Time deposits, 10, 17, 18, 23, 27 Treasury cash, Treasury currency, 4, 5, 15 Treasury deposits, 5, 12, 13, 40 Treasury operating balance, 40 Unemployment, 64 U.S. balance of payments, 72 U.S. Govt, balances: Commercial bank holdings, 23, 27 Member bank holdings, 17 Treasury deposits at Reserve Banks, 5, 12, 13, 40 U.S. Govt, securities: Bank holdings, 18, 22, 25, 37, 42, 43 Dealer transactions, positions, and financing, 44 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 Foreign and international holdings, 12, 81, 84, 88 International transactions, 81, 84 New issues, gross proceeds, 46 Open market transactions, 11 Outstanding, by type of security, 42, 43, 45 Ownership, 42, 43 Yields and prices, 34, 35 United States notes, 15 Utilities, production index, 59, 61 Veterans Administration, 49, 50, 51, 52, 53 Weekly reporting banks, 24 Yields (See Interest rates) (References are to pages A-4 through A-111 although the prefix “ A” is omitted in this index) Income, national and personal, 68, 69 Income and expenses: Insured commercial banks, 96 Member banks, 96-111 Industrial production index, 58-61, 62 Instalment loans, 54, 55, 56, 57 Insurance companies, 37, 42, 43, 50, 51 Insured commercial banks, 20, 22, 30, 96 Interbank deposits, 18, 23 Interest rates: Business loans by banks, 32 Federal Reserve Banks, 8 Foreign countries, 92, 93 Money market rates, 33 Mortgage yields, 51, 52, 53 Prime rate, commercial banks, 32 Time and savings deposits, maximum rates, 10 Yields, bond and stock, 34 International capital transactions of U.S., 76-90 International institutions, 74, 75, 92, 94 Inventories, 68 Investment companies, issues and assets, 47 Investments (See also specific types of investments): Banks, by classes, 18, 22, 25, 26, 37 Commercial banks, 17 Federal Reserve Banks, 12, 14 Life insurance companies, 37 Savings and loan assns., 38 BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^ Chicago j OmaJta* Cincinnati cW % It.Lcmis 'CfuirCotteJ Oklahoma City ^ tta n ta Dallas Jiouston tan Antonio* Miami January 1972 'Drawn lyUW . Qatvin, Cart ☆ (p THE FEDERAL RESERVE SYSTEM q) * A L A S KA HAWAII L e g e n d Boundaries of Federal Reserve Districts ----- Boundaries of Federal Reserve Branch Territories o Board of Governors of the Federal Reserve System © Federal Reserve Bank Cities • Federal Reserve Branch Cities • Federal Reserve Bank Facilities
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